XML 23 R11.htm IDEA: XBRL DOCUMENT
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Loans | 3 Months Ended
--- | ---
Mar. 31, 2018
Loans |
Loans | Note 4 – Loans Major classifications of loans were as follows:
|  | March 31, 2018 |  | December 31, 2017 |
Commercial |  | $ | 281,134 |  | $ | 272,851 |
Leases |  |  | 66,344 |  |  | 68,325 |
Real estate - commercial |  |  | 713,422 |  |  | 750,991 |
Real estate - construction |  |  | 91,479 |  |  | 85,162 |
Real estate - residential |  |  | 438,610 |  |  | 426,230 |
Consumer |  |  | 2,120 |  |  | 2,774 |
Other 1 |  |  | 7,725 |  |  | 10,609 |
|  |  | 1,600,834 |  |  | 1,616,942 |
Net deferred loan costs |  |  | 978 |  |  | 680 |
Total loans |  | $ | 1,601,812 |  | $ | 1,617,622 |
1 The “Other” class includes overdrafts. It is the policy of the Company to review each prospective credit prior to making a loan in order to determine if an adequate level of security or collateral has been obtained. 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 laws, the Company’s lending standards and credit monitoring procedures. With selected exceptions, the Bank 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 77.6% and 78.0% of the portfolio at March 31, 2018, and December 31, 2017, respectively. Aged analysis of past due loans by class of loans was as follows:
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Recorded
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Investment
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 90 days or
|  |  |  |  |  |  |  | 90 Days or |  |  |  |  |  |  |  |  |  |  |  |  |  | Greater Past
|  | 30-59 Days |  | 60-89 Days |  | Greater Past |  | Total Past |  |  |  |  |  |  |  |  |  |  | Due and
March 31, 2018 |  | Past Due |  | Past Due |  | Due |  | Due |  | Current |  | Nonaccrual |  | Total Loans |  | Accruing
Commercial |  | $ | 332 |  | $ | - |  | $ | - |  | $ | 332 |  | $ | 280,802 |  | $ | - |  | $ | 281,134 |  | $ | -
Leases |  |  | 152 |  |  | - |  |  | - |  |  | 152 |  |  | 66,192 |  |  | - |  |  | 66,344 |  |  | -
Real estate - commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied general purpose |  |  | 63 |  |  | - |  |  | - |  |  | 63 |  |  | 141,540 |  |  | 683 |  |  | 142,286 |  |  | -
Owner occupied special purpose |  |  | 744 |  |  | - |  |  | - |  |  | 744 |  |  | 165,104 |  |  | 440 |  |  | 166,288 |  |  | -
Non-owner occupied general purpose |  |  | 330 |  |  | 111 |  |  | - |  |  | 441 |  |  | 253,748 |  |  | 42 |  |  | 254,231 |  |  | -
Non-owner occupied special purpose |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 88,642 |  |  | 3,575 |  |  | 92,217 |  |  | -
Retail properties |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 42,577 |  |  | - |  |  | 42,577 |  |  | -
Farm |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 15,823 |  |  | - |  |  | 15,823 |  |  | -
Real estate - construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilder |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 2,503 |  |  | - |  |  | 2,503 |  |  | -
Land |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 2,479 |  |  | - |  |  | 2,479 |  |  | -
Commercial speculative |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 35,432 |  |  | - |  |  | 35,432 |  |  | -
All other |  |  | 190 |  |  | - |  |  | - |  |  | 190 |  |  | 50,678 |  |  | 197 |  |  | 51,065 |  |  | -
Real estate - residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investor |  |  | 92 |  |  | - |  |  | - |  |  | 92 |  |  | 56,163 |  |  | 361 |  |  | 56,616 |  |  | -
Multifamily |  |  | 338 |  |  | - |  |  | - |  |  | 338 |  |  | 125,086 |  |  | - |  |  | 125,424 |  |  | -
Owner occupied |  |  | 258 |  |  | 69 |  |  | - |  |  | 327 |  |  | 123,779 |  |  | 4,625 |  |  | 128,731 |  |  | -
Revolving and junior liens |  |  | 321 |  |  | - |  |  | 401 |  |  | 722 |  |  | 125,998 |  |  | 1,119 |  |  | 127,839 |  |  | 409
Consumer |  |  | 1 |  |  | - |  |  | - |  |  | 1 |  |  | 2,102 |  |  | 17 |  |  | 2,120 |  |  | -
Other 1 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 8,703 |  |  | - |  |  | 8,703 |  |  | -
Total |  | $ | 2,821 |  | $ | 180 |  | $ | 401 |  | $ | 3,402 |  | $ | 1,587,351 |  | $ | 11,059 |  | $ | 1,601,812 |  | $ | 409
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Recorded
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Investment
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 90 days or
|  |  |  |  |  |  |  | 90 Days or |  |  |  |  |  |  |  |  |  |  |  |  |  | Greater Past
|  | 30-59 Days |  | 60-89 Days |  | Greater Past |  | Total Past |  |  |  |  |  |  |  |  |  |  | Due and
December 31, 2017 |  | Past Due |  | Past Due |  | Due |  | Due |  | Current |  | Nonaccrual |  | Total Loans |  | Accruing
Commercial |  | $ | 995 |  | $ | 275 |  | $ | - |  | $ | 1,270 |  | $ | 271,581 |  | $ | - |  | $ | 272,851 |  | $ | -
Leases |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 68,147 |  |  | 178 |  |  | 68,325 |  |  | -
Real estate - commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied general purpose |  |  | 1,136 |  |  | - |  |  | - |  |  | 1,136 |  |  | 144,267 |  |  | 455 |  |  | 145,858 |  |  | -
Owner occupied special purpose |  |  | 226 |  |  | - |  |  | - |  |  | 226 |  |  | 170,546 |  |  | 342 |  |  | 171,114 |  |  | -
Non-owner occupied general purpose |  |  | - |  |  | 593 |  |  | - |  |  | 593 |  |  | 273,203 |  |  | 1,163 |  |  | 274,959 |  |  | -
Non-owner occupied special purpose |  |  | - |  |  | - |  |  | 248 |  |  | 248 |  |  | 92,923 |  |  | - |  |  | 93,171 |  |  | 254
Retail properties |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 49,538 |  |  | 1,081 |  |  | 50,619 |  |  | -
Farm |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 15,270 |  |  | - |  |  | 15,270 |  |  | -
Real estate - construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilder |  |  | 129 |  |  | - |  |  | - |  |  | 129 |  |  | 2,221 |  |  | - |  |  | 2,350 |  |  | -
Land |  |  | 1,124 |  |  | - |  |  | - |  |  | 1,124 |  |  | 1,319 |  |  | - |  |  | 2,443 |  |  | -
Commercial speculative |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 32,028 |  |  | - |  |  | 32,028 |  |  | -
All other |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 48,140 |  |  | 201 |  |  | 48,341 |  |  | -
Real estate - residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investor |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 55,248 |  |  | 372 |  |  | 55,620 |  |  | -
Multifamily |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 125,049 |  |  | 4,723 |  |  | 129,772 |  |  | -
Owner occupied |  |  | 74 |  |  | - |  |  | - |  |  | 74 |  |  | 123,838 |  |  | 4,674 |  |  | 128,586 |  |  | -
Revolving and junior liens |  |  | 491 |  |  | 278 |  |  | - |  |  | 769 |  |  | 110,291 |  |  | 1,192 |  |  | 112,252 |  |  | -
Consumer |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 2,767 |  |  | 7 |  |  | 2,774 |  |  | -
Other 1 |  |  | 37 |  |  | - |  |  | - |  |  | 37 |  |  | 11,252 |  |  | - |  |  | 11,289 |  |  | -
Total |  | $ | 4,212 |  | $ | 1,146 |  | $ | 248 |  | $ | 5,606 |  | $ | 1,597,628 |  | $ | 14,388 |  | $ | 1,617,622 |  | $ | 254
1 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. Credit Quality Indicators by class of loans were as follows:
March 31, 2018 |  |  |  |  | Special |  |  |  |  |  |  |  |  |
|  | Pass |  | Mention |  | Substandard 1 |  | Doubtful |  | Total
Commercial |  | $ | 278,276 |  | $ | 2,858 |  | $ | - |  | $ | - |  | $ | 281,134
Leases |  |  | 65,734 |  |  | - |  |  | 610 |  |  | - |  |  | 66,344
Real estate - commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied general purpose |  |  | 138,424 |  |  | 1,821 |  |  | 2,041 |  |  | - |  |  | 142,286
Owner occupied special purpose |  |  | 164,707 |  |  | 1,141 |  |  | 440 |  |  | - |  |  | 166,288
Non-owner occupied general purpose |  |  | 253,551 |  |  | 638 |  |  | 42 |  |  | - |  |  | 254,231
Non-owner occupied special purpose |  |  | 88,642 |  |  | - |  |  | 3,575 |  |  | - |  |  | 92,217
Retail Properties |  |  | 41,373 |  |  | 1,204 |  |  | - |  |  | - |  |  | 42,577
Farm |  |  | 12,134 |  |  | 1,250 |  |  | 2,439 |  |  | - |  |  | 15,823
Real estate - construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilder |  |  | 2,503 |  |  | - |  |  | - |  |  | - |  |  | 2,503
Land |  |  | 2,479 |  |  | - |  |  | - |  |  | - |  |  | 2,479
Commercial speculative |  |  | 35,432 |  |  | - |  |  | - |  |  | - |  |  | 35,432
All other |  |  | 49,018 |  |  | 1,676 |  |  | 371 |  |  | - |  |  | 51,065
Real estate - residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investor |  |  | 56,180 |  |  | - |  |  | 436 |  |  | - |  |  | 56,616
Multifamily |  |  | 125,424 |  |  | - |  |  | - |  |  | - |  |  | 125,424
Owner occupied |  |  | 122,696 |  |  | 559 |  |  | 5,476 |  |  | - |  |  | 128,731
Revolving and junior liens |  |  | 125,801 |  |  | - |  |  | 2,038 |  |  | - |  |  | 127,839
Consumer |  |  | 2,102 |  |  | - |  |  | 18 |  |  | - |  |  | 2,120
Other |  |  | 8,703 |  |  | - |  |  | - |  |  | - |  |  | 8,703
Total |  | $ | 1,573,179 |  | $ | 11,147 |  | $ | 17,486 |  | $ | - |  | $ | 1,601,812
December 31, 2017 |  |  |  |  | Special |  |  |  |  |  |  |  |  |
|  | Pass |  | Mention |  | Substandard 1 |  | Doubtful |  | Total
Commercial |  | $ | 270,889 |  | $ | 1,962 |  | $ | - |  | $ | - |  | $ | 272,851
Leases |  |  | 67,500 |  |  | - |  |  | 825 |  |  | - |  |  | 68,325
Real estate - commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied general purpose |  |  | 142,843 |  |  | 1,927 |  |  | 1,088 |  |  | - |  |  | 145,858
Owner occupied special purpose |  |  | 169,621 |  |  | 1,152 |  |  | 341 |  |  | - |  |  | 171,114
Non-owner occupied general purpose |  |  | 271,731 |  |  | 2,065 |  |  | 1,163 |  |  | - |  |  | 274,959
Non-owner occupied special purpose |  |  | 89,582 |  |  | - |  |  | 3,589 |  |  | - |  |  | 93,171
Retail Properties |  |  | 48,321 |  |  | 1,217 |  |  | 1,081 |  |  | - |  |  | 50,619
Farm |  |  | 11,755 |  |  | 1,029 |  |  | 2,486 |  |  | - |  |  | 15,270
Real estate - construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilder |  |  | 2,350 |  |  | - |  |  | - |  |  | - |  |  | 2,350
Land |  |  | 2,443 |  |  | - |  |  | - |  |  | - |  |  | 2,443
Commercial speculative |  |  | 32,028 |  |  | - |  |  | - |  |  | - |  |  | 32,028
All other |  |  | 46,913 |  |  | 1,052 |  |  | 376 |  |  | - |  |  | 48,341
Real estate - residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investor |  |  | 55,172 |  |  | - |  |  | 448 |  |  | - |  |  | 55,620
Multifamily |  |  | 125,049 |  |  | - |  |  | 4,723 |  |  | - |  |  | 129,772
Owner occupied |  |  | 122,759 |  |  | 561 |  |  | 5,266 |  |  | - |  |  | 128,586
Revolving and junior liens |  |  | 110,353 |  |  | - |  |  | 1,899 |  |  | - |  |  | 112,252
Consumer |  |  | 2,754 |  |  | - |  |  | 20 |  |  | - |  |  | 2,774
Other |  |  | 11,289 |  |  | - |  |  | - |  |  | - |  |  | 11,289
Total |  | $ | 1,583,352 |  | $ | 10,965 |  | $ | 23,305 |  | $ | - |  | $ | 1,617,622
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 $1.3 million in residential real estate loans in the process of foreclosure as of March 31, 2018, and December 31, 2017, respectively. The Company also had $257,000 and $900,000 in residential real estate included in OREO as of March 31, 2018, and December 31, 2017, respectively. Impaired loans, which include nonaccrual loans and accruing troubled debt restructurings, by class of loans for the March 31, 2018 periods listed were as follows:
|  |  |  | Three Months Ended
|  | As of March 31, 2018 |  | March 31, 2018
|  |  |  |  | Unpaid |  |  |  |  | Average |  | Interest
|  | Recorded |  | Principal |  | Related |  | Recorded |  | Income
|  | Investment |  | Balance |  | Allowance |  | Investment |  | Recognized
With no related allowance recorded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | -
Leases |  |  | - |  |  | - |  |  | - |  |  | 89 |  |  | -
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied general purpose |  |  | 378 |  |  | 421 |  |  | - |  |  | 417 |  |  | -
Owner occupied special purpose |  |  | 440 |  |  | 552 |  |  | - |  |  | 391 |  |  | -
Non-owner occupied general purpose |  |  | 42 |  |  | 56 |  |  | - |  |  | 602 |  |  | -
Non-owner occupied special purpose |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Retail properties |  |  | - |  |  | - |  |  | - |  |  | 541 |  |  | -
Farm |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilder |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Land |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Commercial speculative |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
All other |  |  | 197 |  |  | 227 |  |  | - |  |  | 199 |  |  | -
Residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investor |  |  | 361 |  |  | 531 |  |  | - |  |  | 366 |  |  | -
Multifamily |  |  | - |  |  | - |  |  | - |  |  | 2,362 |  |  | -
Owner occupied |  |  | 5,148 |  |  | 6,650 |  |  | - |  |  | 5,178 |  |  | 9
Revolving and junior liens |  |  | 1,125 |  |  | 1,329 |  |  | - |  |  | 1,125 |  |  | -
Consumer |  |  | 17 |  |  | 18 |  |  | - |  |  | 12 |  |  | -
Total impaired loans with no recorded allowance |  |  | 7,708 |  |  | 9,784 |  |  | - |  |  | 11,282 |  |  | 9
With an allowance recorded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Leases |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied general purpose |  |  | 305 |  |  | 305 |  |  | 26 |  |  | 152 |  |  | -
Owner occupied special purpose |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Non-owner occupied general purpose |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Non-owner occupied special purpose |  |  | 3,575 |  |  | 3,575 |  |  | 477 |  |  | 1,788 |  |  | -
Retail properties |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Farm |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilder |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Land |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Commercial speculative |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
All other |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investor |  |  | 823 |  |  | 823 |  |  | 10 |  |  | 826 |  |  | 11
Multifamily |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Owner occupied |  |  | 3,676 |  |  | 3,676 |  |  | 46 |  |  | 3,559 |  |  | 37
Revolving and junior liens |  |  | 1,143 |  |  | 1,143 |  |  | 29 |  |  | 1,064 |  |  | 11
Consumer |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Total impaired loans with a recorded allowance |  |  | 9,522 |  |  | 9,522 |  |  | 588 |  |  | 7,389 |  |  | 59
Total impaired loans |  | $ | 17,230 |  | $ | 19,306 |  | $ | 588 |  | $ | 18,671 |  | $ | 68
Impaired loans by class of loans as of December 31, 2017, and for the three months ended March 31, 2017, were as follows:
|  |  |  |  |  |  |  |  |  |  | Three Months Ended
|  | As of December 31, 2017 |  | March 31, 2017
|  |  |  | Unpaid |  |  |  | Average |  | Interest
|  | Recorded |  | Principal |  | Related |  | Recorded |  | Income
|  | Investment |  | Balance |  | Allowance |  | Investment |  | Recognized
With no related allowance recorded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | - |  | $ | - |  | $ | - |  | $ | 132 |  | $ | -
Leases |  |  | 178 |  |  | 213 |  |  | - |  |  | 425 |  |  | -
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied general purpose |  |  | 455 |  |  | 495 |  |  | - |  |  | 1,270 |  |  | -
Owner occupied special purpose |  |  | 342 |  |  | 498 |  |  | - |  |  | 380 |  |  | -
Non-owner occupied general purpose |  |  | 1,163 |  |  | 1,538 |  |  | - |  |  | 1,445 |  |  | 1
Non-owner occupied special purpose |  |  | - |  |  | - |  |  | - |  |  | 506 |  |  | -
Retail properties |  |  | 1,081 |  |  | 1,177 |  |  | - |  |  | 1,170 |  |  | -
Farm |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilder |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Land |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Commercial speculative |  |  | - |  |  | - |  |  | - |  |  | 72 |  |  | -
All other |  |  | 201 |  |  | 229 |  |  | - |  |  | 206 |  |  | -
Residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investor |  |  | 372 |  |  | 676 |  |  | - |  |  | 1,744 |  |  | 12
Multifamily |  |  | 4,723 |  |  | 4,965 |  |  | - |  |  | - |  |  | -
Owner occupied |  |  | 5,208 |  |  | 6,680 |  |  | - |  |  | 9,202 |  |  | 39
Revolving and junior liens |  |  | 1,125 |  |  | 1,313 |  |  | - |  |  | 2,447 |  |  | 9
Consumer |  |  | 7 |  |  | 8 |  |  | - |  |  | 106 |  |  | -
Total impaired loans with no recorded allowance |  |  | 14,855 |  |  | 17,792 |  |  | - |  |  | 19,105 |  |  | 61
With an allowance recorded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Leases |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied general purpose |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Owner occupied special purpose |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Non-owner occupied general purpose |  |  | - |  |  | - |  |  | - |  |  | 123 |  |  | -
Non-owner occupied special purpose |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Retail properties |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Farm |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilder |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Land |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Commercial speculative |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
All other |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investor |  |  | 829 |  |  | 829 |  |  | 10 |  |  | - |  |  | -
Multifamily |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Owner occupied |  |  | 3,443 |  |  | 3,443 |  |  | 43 |  |  | 803 |  |  | -
Revolving and junior liens |  |  | 985 |  |  | 985 |  |  | 91 |  |  | - |  |  | -
Consumer |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Total impaired loans with a recorded allowance |  |  | 5,257 |  |  | 5,257 |  |  | 144 |  |  | 926 |  |  | -
Total impaired loans |  | $ | 20,112 |  | $ | 23,049 |  | $ | 144 |  | $ | 20,031 |  | $ | 61
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 and lease losses for TDRs is determined by calculating the present value of the TDR cash flows by discounting the original payment less an assumption for probability of default at the original note’s issue rate, and adding this amount to the present value of collateral less selling costs. 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 and lease 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. The allowance for loan and lease losses also includes an allowance based on a loss migration analysis for each loan category on loans and leases that are not individually evaluated for specific impairment. All loans charged-off, including TDRs charged-off, are factored into this calculation by portfolio segment. TDRs that were modified during the period are as follows:
|  | TDR Modifications |
|  | Three Months Ended March 31, 2018 |
|  | # of |  | Pre-modification |  | Post-modification |
|  | contracts |  | recorded investment |  | recorded investment |
Troubled debt restructurings |  |  |  |  |  |  |  |  |
Real estate - residential |  |  |  |  |  |  |  |  |
Investor |  |  |  |  |  |  |  |  |
Deferral 1 |  | 1 |  | $ | 165 |  | $ | 74 |
Revolving and junior liens |  |  |  |  |  |  |  |  |
Rate 2 |  | 1 |  |  | 24 |  |  | 24 |
Other 3 |  | 4 |  |  | 218 |  |  | 217 |
Total |  | 6 |  | $ | 407 |  | $ | 315 |
|  | TDR Modifications |
|  | Three Months Ended March 31, 2017 |
|  | # of |  | Pre-modification |  | Post-modification |
|  | contracts |  | recorded investment |  | recorded investment |
Troubled debt restructurings |  |  |  |  |  |  |  |  |
Revolving and junior liens |  |  |  |  |  |  |  |  |
HAMP 4 |  | 1 |  | $ | 56 |  | $ | 56 |
Other 3 |  | 3 |  |  | 188 |  |  | 187 |
Total |  | 4 |  | $ | 244 |  | $ | 243 |
1 Deferral: Refers to the deferral of principal. 2 Rate: Refers to interest rate reduction. 3 Other: Change of terms from bankruptcy court. 4 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 was no TDR default activity for the March 31, 2018 and March 31, 2017, for loans that were restructured within the 12 month period prior to default.

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