XML 28 R12.htm IDEA: XBRL DOCUMENT
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Loans | 12 Months Ended
--- | ---
Dec. 31, 2016
Loans |
Loans | Note 5: Loans Major classifications of loans were as follows:
|  | December 31, 2016 |  | December 31, 2015 |
Commercial |  | $ | 228,113 |  | $ | 115,603 |
Real estate - commercial |  |  | 736,247 |  |  | 605,721 |
Real estate - construction |  |  | 64,720 |  |  | 19,806 |
Real estate - residential |  |  | 377,851 |  |  | 351,007 |
Consumer |  |  | 3,237 |  |  | 4,216 |
Overdraft |  |  | 436 |  |  | 483 |
Lease financing receivables |  |  | 55,451 |  |  | 25,712 |
Other |  |  | 11,537 |  |  | 10,130 |
|  |  | 1,477,592 |  |  | 1,132,678 |
Net deferred loan costs |  |  | 1,217 |  |  | 1,037 |
Total loans |  | $ | 1,478,809 |  | $ | 1,133,715 |
Total loans reflects growth of $345.1 million for the year ended December 31, 2016. The Talmer branch acquisition in late 2016 comprised a large component of this growth, as $221.0 million of loans were acquired, net of a $2.8 million purchase accounting discount recorded. These acquired loans were primarily commercial, real estate-commerical and real estate-construction. In addition to the Talmer branch acquisition, lease financing receivables increased in 2016 due to purchased as well as originated leases, following management’s strategic plan to diversify the loan portfolio. It is the policy of the Company to review each prospective credit in order to determine if an adequate level of security or collateral can be obtained prior to making a loan. The type of collateral, when required, will vary from liquid assets to real estate. The Company’s access to collateral, in the event of borrower default, is assured through adherence to lending law, the Company’s lending standards and credit monitoring procedures. The Bank generally makes loans solely within its market area. There are no significant concentrations of loans where the customers’ ability to honor loan terms is dependent upon a single economic sector although the real estate related categories listed above represent 79.7% and 86.1% of the portfolio at December 31, 2016, and December 31, 2015, respectively. Aged analysis of past due loans by class of loans as of December 31, 2016, and December 31, 2015, were as follows:
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Recorded
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Investment
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 90 days or
|  |  |  |  |  |  |  | 90 Days or |  |  |  |  |  |  |  |  |  |  |  |  |  | Greater Past
|  | 30-59 Days |  | 60-89 Days |  | Greater Past |  | Total Past |  |  |  |  |  |  |  |  |  |  | Due and
December 31, 2016 |  | Past Due |  | Past Due |  | Due |  | Due |  | Current |  | Nonaccrual |  | Total Loans |  | Accruing
Commercial 1 |  | $ | 57 |  | $ | 360 |  | $ | - |  | $ | 417 |  | $ | 282,541 |  | $ | 606 |  | $ | 283,564 |  | $ | -
Real estate - commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied general purpose |  |  | 758 |  |  | - |  |  | - |  |  | 758 |  |  | 135,599 |  |  | 879 |  |  | 137,236 |  |  | -
Owner occupied special purpose |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 177,755 |  |  | 385 |  |  | 178,140 |  |  | -
Non-owner occupied general purpose |  |  | 667 |  |  | 379 |  |  | - |  |  | 1,046 |  |  | 229,315 |  |  | 1,930 |  |  | 232,291 |  |  | -
Non-owner occupied special purpose |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 118,052 |  |  | 1,013 |  |  | 119,065 |  |  | -
Retail properties |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 53,474 |  |  | 1,179 |  |  | 54,653 |  |  | -
Farm |  |  | 1,353 |  |  | - |  |  | - |  |  | 1,353 |  |  | 13,509 |  |  | - |  |  | 14,862 |  |  | -
Real estate - construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilder |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 3,883 |  |  | - |  |  | 3,883 |  |  | -
Land |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 3,029 |  |  | - |  |  | 3,029 |  |  | -
Commercial speculative |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 22,654 |  |  | 74 |  |  | 22,728 |  |  | -
All other |  |  | 364 |  |  | - |  |  | - |  |  | 364 |  |  | 34,509 |  |  | 207 |  |  | 35,080 |  |  | -
Real estate - residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investor |  |  | 237 |  |  | - |  |  | - |  |  | 237 |  |  | 151,426 |  |  | 936 |  |  | 152,599 |  |  | -
Owner occupied |  |  | 274 |  |  | - |  |  | - |  |  | 274 |  |  | 116,900 |  |  | 6,452 |  |  | 123,626 |  |  | -
Revolving and junior liens |  |  | 225 |  |  | 405 |  |  | - |  |  | 630 |  |  | 99,374 |  |  | 1,622 |  |  | 101,626 |  |  | -
Consumer |  |  | 10 |  |  | 36 |  |  | - |  |  | 46 |  |  | 3,191 |  |  | - |  |  | 3,237 |  |  | -
Other 2 |  |  | 14 |  |  | - |  |  | - |  |  | 14 |  |  | 13,176 |  |  | - |  |  | 13,190 |  |  | -
Total |  | $ | 3,959 |  | $ | 1,180 |  | $ | - |  | $ | 5,139 |  | $ | 1,458,387 |  | $ | 15,283 |  | $ | 1,478,809 |  | $ | -
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Recorded
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Investment
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 90 days or
|  |  |  |  |  |  |  | 90 Days or |  |  |  |  |  |  |  |  |  |  |  |  |  | Greater Past
|  | 30-59 Days |  | 60-89 Days |  | Greater Past |  | Total Past |  |  |  |  |  |  |  |  |  |  | Due and
December 31, 2015 |  | Past Due |  | Past Due |  | Due |  | Due |  | Current |  | Nonaccrual |  | Total Loans |  | Accruing
Commercial 1 |  | $ | 394 |  | $ | - |  | $ | - |  | $ | 394 |  | $ | 140,848 |  | $ | 73 |  | $ | 141,315 |  | $ | -
Real estate - commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied general purpose |  |  | 652 |  |  | 119 |  |  | - |  |  | 771 |  |  | 123,479 |  |  | 1,254 |  |  | 125,504 |  |  | -
Owner occupied special purpose |  |  | 358 |  |  | - |  |  | - |  |  | 358 |  |  | 170,827 |  |  | 763 |  |  | 171,948 |  |  | -
Non-owner occupied general purpose |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 166,668 |  |  | 975 |  |  | 167,643 |  |  | -
Non-owner occupied special purpose |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 92,387 |  |  | - |  |  | 92,387 |  |  | -
Retail properties |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 34,352 |  |  | - |  |  | 34,352 |  |  | -
Farm |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 12,615 |  |  | 1,272 |  |  | 13,887 |  |  | -
Real estate - construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilder |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 2,604 |  |  | - |  |  | 2,604 |  |  | -
Land |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 1,137 |  |  | - |  |  | 1,137 |  |  | -
Commercial speculative |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 2,117 |  |  | 83 |  |  | 2,200 |  |  | -
All other |  |  | 6 |  |  | 77 |  |  | 65 |  |  | 148 |  |  | 13,717 |  |  | - |  |  | 13,865 |  |  | 67
Real estate - residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investor |  |  | 101 |  |  | - |  |  | - |  |  | 101 |  |  | 125,611 |  |  | 972 |  |  | 126,684 |  |  | -
Owner occupied |  |  | 1,083 |  |  | 446 |  |  | - |  |  | 1,529 |  |  | 110,885 |  |  | 6,378 |  |  | 118,792 |  |  | -
Revolving and junior liens |  |  | 344 |  |  | 68 |  |  | - |  |  | 412 |  |  | 102,500 |  |  | 2,619 |  |  | 105,531 |  |  | -
Consumer |  |  | 4 |  |  | - |  |  | - |  |  | 4 |  |  | 4,212 |  |  | - |  |  | 4,216 |  |  | -
Other 2 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 11,650 |  |  | - |  |  | 11,650 |  |  | -
Total |  | $ | 2,942 |  | $ | 710 |  | $ | 65 |  | $ | 3,717 |  | $ | 1,115,609 |  | $ | 14,389 |  | $ | 1,133,715 |  | $ | 67
1 The “Commercial” class includes lease financing receivables. 2 The “Other” class includes overdrafts and net deferred costs. Credit Quality Indicators: The Company categorizes loans into credit risk categories based on current financial information, overall debt service coverage, comparison against industry averages, historical payment experience, and current economic trends. This analysis includes loans with outstanding balances or commitments greater than $50,000 and excludes homogeneous loans such as home equity lines of credit and residential mortgages. Loans with a classified risk rating are reviewed quarterly regardless of size or loan type. The Company uses the following definitions for classified risk ratings: Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Credits that are not covered by the definitions above are pass credits, which are not considered to be adversely rated. Loans listed as not rated have outstanding loans or commitments less than $50,000 or are included in groups of homogeneous loans. Credit Quality Indicators by class of loans as of December 31, 2016, and December 31, 2015, were as follows:
December 31, 2016 |  |  |  |  | Special |  |  |  |  |  |  |  |  |
|  | Pass |  | Mention |  | Substandard 1 |  | Doubtful |  | Total
Commercial |  | $ | 267,394 |  | $ | 12,534 |  | $ | 3,636 |  | $ | - |  | $ | 283,564
Real estate - commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied general purpose |  |  | 135,503 |  |  | 53 |  |  | 1,680 |  |  | - |  |  | 137,236
Owner occupied special purpose |  |  | 172,353 |  |  | 5,402 |  |  | 385 |  |  | - |  |  | 178,140
Non-owner occupied general purpose |  |  | 229,448 |  |  | 913 |  |  | 1,930 |  |  | - |  |  | 232,291
Non-owner occupied special purpose |  |  | 114,293 |  |  | - |  |  | 4,772 |  |  | - |  |  | 119,065
Retail Properties |  |  | 52,207 |  |  | 1,267 |  |  | 1,179 |  |  | - |  |  | 54,653
Farm |  |  | 11,840 |  |  | 1,240 |  |  | 1,782 |  |  | - |  |  | 14,862
Real estate - construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilder |  |  | 3,883 |  |  | - |  |  | - |  |  | - |  |  | 3,883
Land |  |  | 3,029 |  |  | - |  |  | - |  |  | - |  |  | 3,029
Commercial speculative |  |  | 22,654 |  |  | - |  |  | 74 |  |  | - |  |  | 22,728
All other |  |  | 34,696 |  |  | - |  |  | 384 |  |  | - |  |  | 35,080
Real estate - residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investor |  |  | 151,503 |  |  | - |  |  | 1,096 |  |  | - |  |  | 152,599
Owner occupied |  |  | 115,831 |  |  | 570 |  |  | 7,225 |  |  | - |  |  | 123,626
Revolving and junior liens |  |  | 99,286 |  |  | - |  |  | 2,340 |  |  | - |  |  | 101,626
Consumer |  |  | 3,236 |  |  | - |  |  | 1 |  |  | - |  |  | 3,237
Other |  |  | 13,165 |  |  | 25 |  |  | - |  |  | - |  |  | 13,190
Total |  | $ | 1,430,321 |  | $ | 22,004 |  | $ | 26,484 |  | $ | - |  | $ | 1,478,809
December 31, 2015 |  |  |  |  | Special |  |  |  |  |  |  |  |  |
|  | Pass |  | Mention |  | Substandard 1 |  | Doubtful |  | Total
Commercial |  | $ | 136,078 |  | $ | 3,208 |  | $ | 2,029 |  | $ | - |  | $ | 141,315
Real estate - commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied general purpose |  |  | 123,827 |  |  | - |  |  | 1,677 |  |  | - |  |  | 125,504
Owner occupied special purpose |  |  | 171,185 |  |  | - |  |  | 763 |  |  | - |  |  | 171,948
Non-owner occupied general purpose |  |  | 163,956 |  |  | 1,908 |  |  | 1,779 |  |  | - |  |  | 167,643
Non-owner occupied special purpose |  |  | 88,468 |  |  | - |  |  | 3,919 |  |  | - |  |  | 92,387
Retail Properties |  |  | 30,432 |  |  | 1,490 |  |  | 2,430 |  |  | - |  |  | 34,352
Farm |  |  | 12,615 |  |  | - |  |  | 1,272 |  |  | - |  |  | 13,887
Real estate - construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilder |  |  | 2,604 |  |  | - |  |  | - |  |  | - |  |  | 2,604
Land |  |  | 1,137 |  |  | - |  |  | - |  |  | - |  |  | 1,137
Commercial speculative |  |  | 2,117 |  |  | - |  |  | 83 |  |  | - |  |  | 2,200
All other |  |  | 13,865 |  |  | - |  |  | - |  |  | - |  |  | 13,865
Real estate - residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investor |  |  | 125,548 |  |  | - |  |  | 1,136 |  |  | - |  |  | 126,684
Owner occupied |  |  | 111,713 |  |  | - |  |  | 7,079 |  |  | - |  |  | 118,792
Revolving and junior liens |  |  | 102,476 |  |  | - |  |  | 3,055 |  |  | - |  |  | 105,531
Consumer |  |  | 4,215 |  |  | - |  |  | 1 |  |  | - |  |  | 4,216
Other |  |  | 11,650 |  |  | - |  |  | - |  |  | - |  |  | 11,650
Total |  | $ | 1,101,886 |  | $ | 6,606 |  | $ | 25,223 |  | $ | - |  | $ | 1,133,715
1 The substandard credit quality indicator includes both potential problem loans that are currently performing and nonperforming loans. The Company had $1.8 million and $3.9 million in consumer mortgage loans in the process of foreclosure as of December 31, 2016 and December 31, 2015, respectively. The Company also had $225,000 and $2.3 million in residential real estate included in OREO as of Decenber 31, 2016 and December 31, 2015, respectively. Impaired loans, which include nonaccrual loans and troubled debt restructurings, by class of loan as of December 31 were as follows:
|  | December 31, 2016 |  | December 31, 2015
|  |  |  |  | Unpaid |  |  |  |  |  |  | Unpaid |  |
|  | Recorded |  | Principal |  | Related |  | Recorded |  | Principal |  | Related
|  | Investment |  | Balance |  | Allowance |  | Investment |  | Balance |  | Allowance
With no related allowance recorded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 405 |  | $ | 491 |  | $ | - |  | $ | 70 |  | $ | 149 |  | $ | -
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied general purpose |  |  | 1,881 |  |  | 2,131 |  |  | - |  |  | 2,314 |  |  | 3,004 |  |  | -
Owner occupied special purpose |  |  | 385 |  |  | 518 |  |  | - |  |  | 763 |  |  | 871 |  |  | -
Non-owner occupied general purpose |  |  | 1,744 |  |  | 2,010 |  |  | - |  |  | 1,047 |  |  | 1,065 |  |  | -
Non-owner occupied special purpose |  |  | 1,013 |  |  | 1,649 |  |  | - |  |  | - |  |  | - |  |  | -
Retail properties |  |  | 1,179 |  |  | 1,235 |  |  | - |  |  | - |  |  | - |  |  | -
Farm |  |  | - |  |  | - |  |  | - |  |  | 1,272 |  |  | 1,338 |  |  | -
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilder |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Land |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Commercial speculative |  |  | 74 |  |  | 81 |  |  | - |  |  | 83 |  |  | 86 |  |  | -
All other |  |  | 207 |  |  | 221 |  |  | - |  |  | - |  |  | - |  |  | -
Residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investor |  |  | 1,841 |  |  | 2,308 |  |  | - |  |  | 1,906 |  |  | 2,259 |  |  | -
Owner occupied |  |  | 9,824 |  |  | 11,391 |  |  | - |  |  | 10,539 |  |  | 11,999 |  |  | -
Revolving and junior liens |  |  | 2,484 |  |  | 3,018 |  |  | - |  |  | 2,731 |  |  | 3,947 |  |  | -
Consumer |  |  | 201 |  |  | 268 |  |  | - |  |  | - |  |  | - |  |  | -
Total impaired loans with no recorded allowance |  |  | 21,238 |  |  | 25,321 |  |  | - |  |  | 20,725 |  |  | 24,718 |  |  | -
With an allowance recorded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | - |  |  | - |  |  | - |  |  | 3 |  |  | 8 |  |  | 3
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied general purpose |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Owner occupied special purpose |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Non-owner occupied general purpose |  |  | 246 |  |  | 595 |  |  | 246 |  |  | - |  |  | - |  |  | -
Non-owner occupied special purpose |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Retail properties |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Farm |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilder |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Land |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Commercial speculative |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
All other |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investor |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Owner occupied |  |  | 803 |  |  | 853 |  |  | 803 |  |  | 112 |  |  | 112 |  |  | 31
Revolving and junior liens |  |  | - |  |  | - |  |  | - |  |  | 46 |  |  | 46 |  |  | -
Consumer |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Total impaired loans with a recorded allowance |  |  | 1,049 |  |  | 1,448 |  |  | 1,049 |  |  | 161 |  |  | 166 |  |  | 34
Total impaired loans |  | $ | 22,287 |  | $ | 26,769 |  | $ | 1,049 |  | $ | 20,886 |  | $ | 24,884 |  | $ | 34
Average recorded investment and interest income recognized on impaired loans by class of loan for the years ending December 31 were as follows:
|  | Year to date |  | Year to date |  | Year to date
|  | December 31, 2016 |  | December 31, 2015 |  | December 31, 2014
|  | Average |  | Interest |  | Average |  | Interest |  | Average |  | Interest
|  | Recorded |  | Income |  | Recorded |  | Income |  | Recorded |  | Income
|  | Investment |  | Recognized |  | Investment |  | Recognized |  | Investment |  | Recognized
With no related allowance recorded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 238 |  | $ | - |  | $ | 785 |  | $ | - |  | $ | 764 |  | $ | -
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied general purpose |  |  | 2,097 |  |  | 87 |  |  | 4,720 |  |  | 82 |  |  | 4,834 |  |  | 104
Owner occupied special purpose |  |  | 574 |  |  | - |  |  | 1,280 |  |  | - |  |  | 2,584 |  |  | 45
Non-owner occupied general purpose |  |  | 1,396 |  |  | 2 |  |  | 2,939 |  |  | 3 |  |  | 5,130 |  |  | -
Non-owner occupied special purpose |  |  | 506 |  |  | - |  |  | 712 |  |  | - |  |  | 1,042 |  |  | -
Retail properties |  |  | 590 |  |  | - |  |  | - |  |  | - |  |  | 1,572 |  |  | -
Farm |  |  | 636 |  |  | - |  |  | 636 |  |  | - |  |  | - |  |  | -
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilder |  |  | - |  |  | - |  |  | 895 |  |  | - |  |  | 1,903 |  |  | 82
Land |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 105 |  |  | -
Commercial speculative |  |  | 78 |  |  | - |  |  | 42 |  |  | - |  |  | 369 |  |  | -
All other |  |  | 104 |  |  | - |  |  | 145 |  |  | - |  |  | 147 |  |  | -
Residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investor |  |  | 1,873 |  |  | 47 |  |  | 2,251 |  |  | 51 |  |  | 4,290 |  |  | 43
Owner occupied |  |  | 10,182 |  |  | 158 |  |  | 10,979 |  |  | 160 |  |  | 10,299 |  |  | 187
Revolving and junior liens |  |  | 2,608 |  |  | 29 |  |  | 2,484 |  |  | 7 |  |  | 2,004 |  |  | 6
Consumer |  |  | 100 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Total impaired loans with no recorded allowance |  |  | 20,982 |  |  | 323 |  |  | 27,868 |  |  | 303 |  |  | 35,043 |  |  | 467
With an allowance recorded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 2 |  |  | - |  |  | 2 |  |  | - |  |  | - |  |  | -
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied general purpose |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 365 |  |  | -
Owner occupied special purpose |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 2,150 |  |  | -
Non-owner occupied general purpose |  |  | 123 |  |  | - |  |  | 38 |  |  | - |  |  | 508 |  |  | -
Non-owner occupied special purpose |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Retail properties |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Farm |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilder |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 84 |  |  | -
Land |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Commercial speculative |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 587 |  |  | -
All other |  |  | - |  |  | - |  |  | 135 |  |  | - |  |  | 353 |  |  | -
Residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investor |  |  | - |  |  | - |  |  | 67 |  |  | - |  |  | 410 |  |  | -
Owner occupied |  |  | 457 |  |  | - |  |  | 68 |  |  | - |  |  | 794 |  |  | 1
Revolving and junior liens |  |  | 23 |  |  | - |  |  | 208 |  |  | 3 |  |  | 934 |  |  | -
Consumer |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Total impaired loans with a recorded allowance |  |  | 605 |  |  | - |  |  | 518 |  |  | 3 |  |  | 6,185 |  |  | 1
Total impaired loans |  | $ | 21,587 |  | $ | 323 |  | $ | 28,386 |  | $ | 306 |  | $ | 41,228 |  | $ | 468
Troubled debt restructurings (“TDRs”) are loans for which the contractual terms have been modified and both of these conditions exist: (1) there is a concession to the borrower and (2) the borrower is experiencing financial difficulties. Loans are restructured on a case-by-case basis during the loan collection process with modifications generally initiated at the request of the borrower. These modifications may include reduction in interest rates, extension of term, deferrals of principal, and other modifications. The Bank participates in the U.S. Department of the Treasury’s (the “Treasury”) Home Affordable Modification Program (“HAMP”) which gives qualifying homeowners an opportunity to refinance into more affordable monthly payments. The specific allocation of the allowance for loan losses on a TDR is determined by either discounting the modified cash flows at the original effective rate of the loan before modification or is based on the underlying collateral value less costs to sell, if repayment of the loan is collateral-dependent. If the resulting amount is less than the recorded book value, the Bank either establishes a valuation allowance (i.e. specific reserve) as a component of the allowance for loan losses or charges off the impaired balance if it determines that such amount is a confirmed loss. This method is used consistently for all segments of the portfolio. Loans that were modified during the period are summarized as follows:
|  | TDR Modifications |
|  | Twelve months ended December 31, 2016 |
|  | # of |  | Pre-modification |  | Post-modification |
|  | contracts |  | recorded investment |  | recorded investment |
Troubled debt restructurings |  |  |  |  |  |  |  |  |
Real estate - commercial |  |  |  |  |  |  |  |  |
Other 1 |  | 2 |  | $ | 312 |  | $ | 205 |
Real estate - residential |  |  |  |  |  |  |  |  |
Owner occupied |  |  |  |  |  |  |  |  |
HAMP 2 |  | 2 |  |  | 419 |  |  | 262 |
Revolving and junior liens |  |  |  |  |  |  |  |  |
HAMP 2 |  | 3 |  |  | 252 |  |  | 228 |
Other 1 |  | 3 |  |  | 808 |  |  | 777 |
Total |  | 10 |  | $ | 1,791 |  | $ | 1,472 |
|  | TDR Modifications |
|  | Twelve months ended December 31, 2015 |
|  | # of |  | Pre-modification |  | Post-modification |
|  | contracts |  | recorded investment |  | recorded investment |
Troubled debt restructurings |  |  |  |  |  |  |  |  |
Real estate - residential |  |  |  |  |  |  |  |  |
Owner occupied |  |  |  |  |  |  |  |  |
Other 1 |  | 2 |  | $ | 256 |  | $ | 255 |
Revolving and junior liens |  |  |  |  |  |  |  |  |
HAMP 2 |  | 5 |  |  | 193 |  |  | 153 |
Other 1 |  | 3 |  |  | 378 |  |  | 347 |
Total |  | 10 |  | $ | 827 |  | $ | 755 |
1 Other: Change of terms from bankruptcy court 2 HAMP: Home Affordable Modification Program TDRs are classified as being in default on a case-by-case basis when they fail to be in compliance with the modified terms. There were no TDRs that defaulted during year 2016 and 2015. The Bank had no commitments to borrowers whose loans were classified as impaired at December 31, 2016. Loans to principal officers, directors, and their affiliates, which are made in the ordinary course of business, were as follows at December 31:
|  | 2016 |  | 2015 |
Beginning balance |  | $ | 1,787 |  | $ | 7,793 |
New loans |  |  | 157 |  |  | 864 |
Repayments and other reductions |  |  | (241) |  |  | (635) |
Change in related party status |  |  | - |  |  | (6,235) |
Ending balance |  | $ | 1,703 |  | $ | 1,787 |
No loans to principal officers, directors, and their affiliates were past due greater than 90 days at either December 31, 2016, or December 31, 2015.

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