The Company’s loan portfolio is grouped into classes to allow management to monitor the performance by the borrower and to monitor the yield on the portfolio. Consistent with ASU 2010-20, Disclosures about the Credit Quality of Financing Receivables and the Allowance for Loan Losses, the segments are further broken down into classes to allow for differing risk characteristics within a segment.

The Company has various types of commercial real estate loans, which have differing levels of credit risk. Owner occupied commercial real estate loans are generally dependent upon the successful operation of the borrower’s business, with the cash flows generated from the business being the primary source of repayment of the loan. If the business suffers a downturn in sales or profitability, the borrower’s ability to repay the loan could be in jeopardy.

Non-owner occupied and multi-family commercial real estate loans and non-owner occupied residential loans present a different credit risk to the Company than owner occupied commercial real estate loans, as the repayment of the loan is dependent upon the borrower’s ability to generate a sufficient level of occupancy to produce rental income that exceeds debt service requirements and operating expenses. Lower occupancy or lease rates may result in a reduction in cash flows, which hinders the ability of the borrower to meet debt service requirements, and may result in lower collateral values. The Company generally recognizes that greater risk is inherent in these credit relationships as compared to owner occupied loans mentioned above.

Acquisition and development loans consist of 1-4 family residential construction and commercial and land development loans. The risk of loss on these loans is largely dependent on the Company’s ability to assess the property’s value at the completion of the project, which should exceed the property’s construction costs. During the construction phase, a number of factors could potentially negatively impact the collateral value, including cost overruns, delays in completing the project, competition, and real estate market conditions which may change based on the supply of similar properties in the area. In the event the collateral value at the completion of the project is not sufficient to cover the outstanding loan balance, the Company must rely upon other repayment sources, including, if any, the guarantors of the project or other collateral securing the loan.

Commercial and industrial loans include advances to local and regional businesses for general commercial purposes and include permanent and short-term working capital, machinery and equipment financing, and may be either in the form of lines of credit or term loans. Although commercial and industrial loans may be unsecured to our highest-rated borrowers, the majority of these loans are secured by the borrower’s accounts receivable, inventory and machinery and equipment. In a significant number of these loans, the collateral also includes the business real estate or the business owner’s personal real estate or assets. Commercial and industrial loans present credit exposure to the Company, as they are more susceptible to risk of loss during a downturn in the economy as borrowers may have greater difficulty in meeting their debt service requirements and the value of the collateral may decline. The Company attempts to mitigate this risk through its underwriting standards, including evaluating the creditworthiness of the borrower and, to the extent available, credit ratings on the business. Additionally, monitoring of the loans through annual renewals and meetings with the borrowers are typical. However, these procedures cannot eliminate the risk of loss associated with commercial and industrial lending.

Municipal loans consist of extensions of credit to municipalities and school districts within the Company’s market area. These loans generally present a lower risk than commercial and industrial loans, as they are generally secured by the municipality’s full taxing authority, by revenue obligations, or by its ability to raise assessments on its customers for a specific utility.

The Company originates loans to its retail customers, including fixed-rate and adjustable first lien mortgage loans with the underlying 1-4 family owner occupied residential property securing the loan. The Company’s risk exposure is minimized in these types of loans through the evaluation of the creditworthiness of the borrower, including credit scores and debt-to-income ratios, and underwriting standards which limit the loan-to-value ratio to generally no more than 80% upon loan origination, unless the borrower obtains private mortgage insurance.

Home equity loans, including term loans and lines of credit, present a slightly higher risk to the Company than 1-4 family first liens, as these loans can be first or second liens on 1-4 family owner occupied residential property, but can have loan-to-value ratios of no greater than 90% of the value of the real estate taken as collateral. The creditworthiness of the borrower is considered including credit scores and debt-to-income ratios.

Installment and other loans’ credit risk are mitigated through prudent underwriting standards, including evaluation of the creditworthiness of the borrower through credit scores and debt-to-income ratios and, if secured, the collateral value of the assets. These loans can be unsecured or secured by assets the value of which may depreciate quickly or may fluctuate, and may present a greater risk to the Company than 1-4 family residential loans.


(Dollars in thousands)	June 30, 2019		December 31, 2018
Commercial real estate:
Owner occupied	$	170,272	$	129,650
Non-owner occupied	298,989		252,794
Multi-family	93,342		78,933
Non-owner occupied residential	121,364		100,367
Acquisition and development:
1-4 family residential construction	12,801		7,385
Commercial and land development	57,027		42,051
Commercial and industrial	219,551		160,964
Municipal	48,358		50,982
Residential mortgage:
First lien	363,946		235,296
Home equity - term	15,989		12,208
Home equity - lines of credit	157,645		143,616
Installment and other loans	42,386		33,411
Total Loans ⁽¹⁾	$	1,601,670	$	1,247,657

In order to monitor ongoing risk associated with its loan portfolio and specific loans within the segments, management uses an internal grading system. The first several rating categories, representing the lowest risk to the Bank, are combined and given a “Pass” rating. Management generally follows regulatory definitions in assigning criticized ratings to loans, including "Special Mention," "Substandard," "Doubtful" or "Loss." The Special Mention category includes loans that have potential weaknesses that may, if not monitored or corrected, weaken the asset or inadequately protect the Bank's position at some future date. These assets pose elevated risk, but their weakness does not yet justify a more severe, or classified rating. Substandard loans are classified as they have a well-defined weakness, or weaknesses that jeopardize liquidation of the debt. These loans are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Substandard loans include loans that management has determined not to be impaired, as well as loans considered to be impaired. A Doubtful loan has a high probability of total or substantial loss, but because of specific pending events that may strengthen the asset, its classification as Loss is deferred. Loss loans are considered uncollectible, as the borrowers are often in bankruptcy, have suspended debt repayments, or have ceased business operations. Once a loan is classified as Loss, there is little prospect of collecting the loan’s principal or interest and it is charged-off.

The Company has a loan review policy and program which is designed to identify and monitor risk in the lending function. The ERM Committee, comprised of executive officers and loan department personnel, is charged with the oversight of overall credit quality and risk exposure of the Company's loan portfolio. This includes the monitoring of the lending activities of all Company personnel with respect to underwriting and processing new loans and the timely follow-up and corrective action for loans showing signs of deterioration in quality. A loan review program provides the Company with an independent review of the commercial loan portfolio on an ongoing basis. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as extended delinquencies, bankruptcy, repossession or death of the borrower occurs, which heightens awareness as to a possible credit event.

Internal loan reviews are completed annually on all commercial relationships with a committed loan balance in excess of $500,000, which includes confirmation of risk rating by an independent credit officer. Credit Administration also reviews loans in excess of $1,000,000. In addition, all commercial relationships greater than $250,000 rated Substandard, Doubtful or Loss are reviewed quarterly and corresponding risk ratings are reaffirmed by the Company's Problem Loan Committee, with subsequent reporting to the ERM Committee.


(Dollars in thousands)	Pass		Special Mention		Non-Impaired Substandard		Impaired - Substandard		Doubtful		PCI Loans		Total
June 30, 2019
Commercial real estate:
Owner occupied	$	158,247	$	1,366	$	878	$	1,737	$	0	$	8,044	$	170,272
Non-owner occupied	286,669		10,935		0		0		0		1,385		298,989
Multi-family	86,765		5,065		700		114		0		698		93,342
Non-owner occupied residential	114,607		2,264		1,156		270		0		3,067		121,364
Acquisition and development:
1-4 family residential construction	12,151		650		0		0		0		0		12,801
Commercial and land development	56,268		188		571		0		0		0		57,027
Commercial and industrial	198,699		9,523		6,946		253		0		4,130		219,551
Municipal	48,358		0		0		0		0		0		48,358
Residential mortgage:
First lien	351,523		0		0		2,392		0		10,031		363,946
Home equity - term	15,877		79		0		12		0		21		15,989
Home equity - lines of credit	156,731		187		22		705		0		0		157,645
Installment and other loans	42,089		0		0		8		0		289		42,386
	$	1,527,984	$	30,257	$	10,273	$	5,491	$	0	$	27,665	$	1,601,670

December 31, 2018
Commercial real estate:
Owner occupied	$	121,903	$	3,024	$	987	$	1,880	$	0	$	1,856	$	129,650
Non-owner occupied	242,136		10,008		0		0		0		650		252,794
Multi-family	71,482		5,886		717		131		0		717		78,933
Non-owner occupied residential	97,590		736		1,197		309		0		535		100,367
Acquisition and development:
1-4 family residential construction	7,385		0		0		0		0		0		7,385
Commercial and land development	41,251		25		583		0		0		192		42,051
Commercial and industrial	150,286		2,278		2,940		286		0		5,174		160,964
Municipal	50,982		0		0		0		0		0		50,982
Residential mortgage:
First lien	229,971		0		0		2,877		0		2,448		235,296
Home equity - term	12,170		0		0		16		0		22		12,208
Home equity - lines of credit	142,638		165		15		798		0		0		143,616
Installment and other loans	33,229		15		1		0		0		166		33,411
	$	1,201,023	$	22,137	$	6,440	$	6,297	$	0	$	11,760	$	1,247,657

For commercial real estate, acquisition and development and commercial and industrial loans, a loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by

management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Generally, loans that are more than 90 days past due are deemed impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed to determine if the loan should be placed on nonaccrual status. Nonaccrual loans in the commercial and commercial real estate portfolios and any TDRs are, by definition, deemed to be impaired. Impairment is measured on a loan-by-loan basis for commercial, construction and restructured loans by either the present value of the expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. A loan is collateral dependent if the repayment of the loan is expected to be provided solely by the underlying collateral. For loans that are deemed to be impaired for extended periods of time, periodic updates on fair values are obtained, which may include updated appraisals. Updated fair values are incorporated into the impairment analysis in the next reporting period.

Loan charge-offs, which may include partial charge-offs, are taken on an impaired loan that is collateral dependent if the loan’s carrying balance exceeds its collateral’s appraised value, the loan has been identified as uncollectible, and it is deemed to be a confirmed loss. Typically, impaired loans with a charge-off or partial charge-off will continue to be considered impaired, unless the note is split into two, and management expects the performing note to continue to perform and is adequately secured. The second, or non-performing note, would be charged-off. Generally, an impaired loan with a partial charge-off may continue to have an impairment reserve on it after the partial charge-off, if factors warrant.

At June 30, 2019 and December 31, 2018, nearly all of the Company’s impaired loans’ extent of impairment were measured based on the estimated fair value of the collateral securing the loan, except for TDRs. By definition, TDRs are considered impaired. All restructured loans’ impairment was determined based on discounted cash flows for those loans classified as TDRs and still accruing interest. For real estate loans, collateral generally consists of commercial real estate, but in the case of commercial and industrial loans, it could also consist of accounts receivable, inventory, equipment or other business assets. Commercial and industrial loans may also have real estate collateral.

Updated appraisals are generally required every 18 months for classified commercial loans in excess of $250,000. The “as is" value provided in the appraisal is often used as the fair value of the collateral in determining impairment, unless circumstances, such as subsequent improvements, approvals, or other circumstances, dictate that another value than that provided by the appraiser is more appropriate.

Generally, impaired commercial loans secured by real estate, other than performing TDRs, are measured at fair value using certified real estate appraisals that had been completed within the last 18 months. Appraised values are discounted for estimated costs to sell the property and other selling considerations to arrive at the property’s fair value. In those situations in which it is determined an updated appraisal is not required for loans individually evaluated for impairment, fair values are based on one or a combination of approaches. In those situations in which a combination of approaches is considered, the factor that carries the most consideration will be the one management believes is warranted. The approaches are:

•Original appraisal – if the original appraisal provides a strong loan-to-value ratio (generally 70% or lower) and, after consideration of market conditions and knowledge of the property and area, it is determined by the Credit Administration staff that there has not been a significant deterioration in the collateral value, the original certified appraised value may be used. Discounts as deemed appropriate for selling costs are factored into the appraised value in arriving at fair value.

Collateral on certain impaired loans is not limited to real estate, and may consist of accounts receivable, inventory, equipment or other business assets. Estimated fair values are determined based on borrowers’ financial statements, inventory ledgers, accounts receivable agings or appraisals from individuals with knowledge in the business. Stated balances are generally discounted for the age of the financial information or the quality of the assets. In determining fair value, liquidation discounts are applied to this collateral based on existing loan evaluation policies.

The Company distinguishes Substandard loans on both an impaired and nonimpaired basis, as it places less emphasis on a loan’s classification, and increased reliance on whether the loan was performing in accordance with the contractual terms. A Substandard classification does not automatically meet the definition of impaired. Loss potential, while existing in the aggregate amount of Substandard loans, does not have to exist in individual extensions of credit classified Substandard. As a result, the Company’s methodology includes an evaluation of certain accruing commercial real estate, acquisition and

development and commercial and industrial loans rated Substandard to be collectively, as opposed to individually, evaluated for impairment. Although the Company believes these loans meet the definition of Substandard, they are generally performing and management has concluded that it is likely we will be able to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement.

The following table, which excludes PCI loans, summarizes impaired loans by segment and class, segregated by those for which a specific allowance was required and those for which a specific allowance was not required at June 30, 2019 and December 31, 2018. The recorded investment in loans excludes accrued interest receivable due to insignificance. Related allowances established generally pertain to those loans in which loan forbearance agreements were in the process of being negotiated or updated appraisals were pending, and any partial charge-off will be recorded when final information is received.


	Impaired Loans with a Specific Allowance										Impaired Loans with No Specific Allowance
(Dollars in thousands)	Recorded Investment (Book Balance)		Unpaid Principal Balance (Legal Balance)		Related Allowance		Recorded Investment (Book Balance)		Unpaid Principal Balance (Legal Balance)
June 30, 2019
Commercial real estate:
Owner occupied	$	0	$	0	$	0	$	1,737	$	2,509

Multi-family	0		0		0		114		329
Non-owner occupied residential	0		0		0		270		612



Commercial and industrial	0		0		0		253		439
Residential mortgage:
First lien	554		554		37		1,838		2,940
Home equity - term	0		0		0		12		20
Home equity - lines of credit	0		0		0		705		999
Installment and other loans	0		0		0		8		17
	$	554	$	554	$	37	$	4,937	$	7,865
December 31, 2018
Commercial real estate:
Owner occupied	$	0	$	0	$	0	$	1,880	$	2,576

Multi-family	0		0		0		131		336
Non-owner occupied residential	0		0		0		309		632



Commercial and industrial	0		0		0		286		457
Residential mortgage:
First lien	743		743		38		2,134		2,727
Home equity - term	0		0		0		16		23
Home equity - lines of credit	0		0		0		798		1,081

	$	743	$	743	$	38	$	5,554	$	7,832


	2019						2018
(Dollars in thousands)	Average Impaired Balance		Interest Income Recognized		Average Impaired Balance		Interest Income Recognized
Three Months Ended June 30,
Commercial real estate:
Owner-occupied	$	1,770	$	1	$	1,233	$	0
Non-owner occupied	0		0		2,960		0
Multi-family	118		0		153		0
Non-owner occupied residential	282		0		356		0
Acquisition and development:
1-4 family residential construction	0		0		201		0

Commercial and industrial	260		0		330		0
Residential mortgage:
First lien	2,512		14		3,310		14
Home equity – term	13		0		20		0
Home equity - lines of credit	709		1		667		1
Installment and other loans	9		0		5		0
	$	5,673	$	16	$	9,235	$	15
Six Months Ended June 30,
Commercial real estate:
Owner occupied	$	1,819	$	1	$	1,233	$	1
Non-owner occupied	0		0		3,421		0
Multi-family	122		0		157		0
Non-owner occupied residential	291		0		364		0
Acquisition and development:
1-4 family residential construction	0		0		250		0

Commercial and industrial	269		0		336		0
Residential mortgage:
First lien	2,652		29		3,538		29
Home equity - term	14		0		20		0
Home equity - lines of credit	736		1		589		1
Installment and other loans	8		0		8		0
	$	5,911	$	31	$	9,916	$	31


	June 30, 2019				December 31, 2018
(Dollars in thousands)	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
Accruing:
Commercial real estate:
Owner occupied	1	$	31	1	$	39



Residential mortgage:
First lien	11	1,052		11	1,069
Home equity - lines of credit	1	21		1	24
	13	1,104		13	1,132
Nonaccruing:
Commercial real estate:
Owner occupied	1	34		1	37



Residential mortgage:
First lien	7	438		8	658

	8	472		9	695
	21	$	1,576	22	$	1,827

Management further monitors the performance and credit quality of the loan portfolio by analyzing the length of time a portfolio is past due, by aggregating loans based on its delinquencies. The following table presents the classes of loan portfolio summarized by aging categories of performing loans and nonaccrual loans at June 30, 2019 and December 31, 2018.


			Days Past Due
(Dollars in thousands)	Current		30-59		60-89		90+ (still accruing)		Total Past Due		Non- Accrual		Total Loans
June 30, 2019
Commercial real estate:
Owner occupied	$	160,522	$	0	$	0	$	0	$	0	$	1,706	$	162,228
Non-owner occupied	297,509		95		0		0		95		0		297,604
Multi-family	92,280		250		0		0		250		114		92,644
Non-owner occupied residential	117,729		298		0		0		298		270		118,297
Acquisition and development:
1-4 family residential construction	12,801		0		0		0		0		0		12,801
Commercial and land development	57,002		0		25		0		25		0		57,027
Commercial and industrial	214,816		254		98		0		352		253		215,421
Municipal	48,358		0		0		0		0		0		48,358
Residential mortgage:
First lien	350,054		1,826		695		0		2,521		1,340		353,915
Home equity - term	15,951		5		0		0		5		12		15,968
Home equity - lines of credit	156,226		498		237		0		735		684		157,645
Installment and other loans	41,880		162		47		0		209		8		42,097
Subtotal	1,565,128		3,388		1,102		0		4,490		4,387		1,574,005
Loans acquired with credit deterioration:
Commercial real estate:
Owner occupied	8,005		0		0		39		39		0		8,044
Non-owner occupied	605		0		0		780		780		0		1,385
Multi-family	698		0		0		0		0		0		698
Non-owner occupied residential	2,997		0		0		70		70		0		3,067



Commercial and industrial	3,781		121		173		55		349		0		4,130

Residential mortgage:
First lien	8,745		365		204		717		1,286		0		10,031
Home equity - term	16		0		5		0		5		0		21

Installment and other loans	219		68		2		0		70		0		289
Subtotal	25,066		554		384		1,661		2,599		0		27,665
	$	1,590,194	$	3,942	$	1,486	$	1,661	$	7,089	$	4,387	$	1,601,670



			Days Past Due
(Dollars in thousands)	Current		30-59		60-89		90+ (still accruing)		Total Past Due		Non- Accrual		Total Loans
December 31, 2018
Commercial real estate:
Owner occupied	$	125,887	$	66	$	0	$	0	$	66	$	1,841	$	127,794
Non-owner occupied	252,144		0		0		0		0		0		252,144
Multi-family	78,085		0		0		0		0		131		78,216
Non-owner occupied residential	99,268		226		29		0		255		309		99,832
Acquisition and development:
1-4 family residential construction	7,385		0		0		0		0		0		7,385
Commercial and land development	41,822		37		0		0		37		0		41,859
Commercial and industrial	154,988		411		105		0		516		286		155,790
Municipal	50,982		0		0		0		0		0		50,982
Residential mortgage:
First lien	228,714		1,592		734		0		2,326		1,808		232,848
Home equity - term	11,487		678		5		0		683		16		12,186
Home equity - lines of credit	142,394		420		28		0		448		774		143,616
Installment and other loans	33,135		66		44		0		110		0		33,245
Subtotal	1,226,291		3,496		945		0		4,441		5,165		1,235,897
Loans acquired with credit deterioration:
Commercial real estate:
Owner occupied	1,784		0		72		0		72		0		1,856
Non-owner occupied	650		0		0		0		0		0		650
Multi-family	717		0		0		0		0		0		717
Non-owner occupied residential	535		0		0		0		0		0		535
Acquisition and development:

Commercial and land development	192		0		0		0		0		0		192
Commercial and industrial	4,943		231		0		0		231		0		5,174

Residential mortgage:
First lien	1,971		382		42		53		477		0		2,448
Home equity - term	17		5		0		0		5		0		22

Installment and other loans	149		13		0		4		17		0		166
Subtotal	10,958		631		114		57		802		0		11,760
	$	1,237,249	$	4,127	$	1,059	$	57	$	5,243	$	5,165	$	1,247,657

The Company maintains its ALL at a level management believes adequate for probable incurred credit losses. The ALL is established and maintained through a provision for loan losses charged to earnings. Quarterly, management assesses the adequacy of the ALL utilizing a defined methodology which considers specific credit evaluation of impaired loans as discussed above, past loan loss historical experience, and qualitative factors. Management believes its approach properly addresses relevant accounting guidance for loans individually identified as impaired and for loans collectively evaluated for impairment, and other bank regulatory guidance.

In connection with its quarterly evaluation of the adequacy of the ALL, management reviews its methodology to determine if it properly addresses the current risk in the loan portfolio. For each loan class, general allowances based on quantitative factors, principally historical loss trends, are provided for loans that are collectively evaluated for impairment. An adjustment to historical loss factors may be incorporated for delinquency and other potential risk not elsewhere defined within the ALL methodology.


	Commercial																		Consumer
(Dollars in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Municipal		Total		Residential Mortgage		Installment and Other		Total		Unallocated		Total
Three Months Ended
June 30, 2019
Balance, beginning of period	$	7,025	$	969	$	1,814	$	98	$	9,906	$	3,765	$	217	$	3,982	$	395	$	14,283
Provision for loan losses	(221)		39		325		(4)		139		(32)		40		8		53		200
Charge-offs	0		0		(47)		0		(47)		(25)		(51)		(76)		0		(123)
Recoveries	43		0		28		0		71		26		3		29		0		100
Balance, end of period	$	6,847	$	1,008	$	2,120	$	94	$	10,069	$	3,734	$	209	$	3,943	$	448	$	14,460
June 30, 2018
Balance, beginning of period	$	6,770	$	510	$	1,590	$	83	$	8,953	$	3,382	$	204	$	3,586	$	461	$	13,000
Provision for loan losses	(418)		208		8		(3)		(205)		237		44		281		124		200
Charge-offs	0		0		0		0		0		(86)		(47)		(133)		0		(133)
Recoveries	328		2		0		0		330		11		29		40		0		370
Balance, end of period	$	6,680	$	720	$	1,598	$	80	$	9,078	$	3,544	$	230	$	3,774	$	585	$	13,437
Six Months Ended
June 30, 2019
Balance, beginning of period	$	6,876	$	817	$	1,656	$	98	$	9,447	$	3,753	$	244	$	3,997	$	570	$	14,014
Provision for loan losses	(118)		189		484		(4)		551		157		14		171		(122)		600
Charge-offs	(25)		0		(90)		0		(115)		(271)		(71)		(342)		0		(457)
Recoveries	114		2		70		0		186		95		22		117		0		303
Balance, end of period	$	6,847	$	1,008	$	2,120	$	94	$	10,069	$	3,734	$	209	$	3,943	$	448	$	14,460
June 30, 2018
Balance, beginning of period	$	6,763	$	417	$	1,446	$	84	$	8,710	$	3,400	$	211	$	3,611	$	475	$	12,796
Provision for loan losses	(411)		300		152		(4)		37		202		51		253		110		400
Charge-offs	0		0		0		0		0		(86)		(118)		(204)		0		(204)
Recoveries	328		3		0		0		331		28		86		114		0		445
Balance, end of period	$	6,680	$	720	$	1,598	$	80	$	9,078	$	3,544	$	230	$	3,774	$	585	$	13,437


	Commercial																		Consumer
(Dollars in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Municipal		Total		Residential Mortgage		Installment and Other		Total		Unallocated		Total
June 30, 2019
Loans allocated by:
Individually evaluated for impairment	$	2,121	$	0	$	253	$	0	$	2,374	$	3,109	$	8	$	3,117	$	0	$	5,491
Collectively evaluated for impairment	681,846		69,828		219,298		48,358		1,019,330		534,471		42,378		576,849		0		1,596,179
	$	683,967	$	69,828	$	219,551	$	48,358	$	1,021,704	$	537,580	$	42,386	$	579,966	$	0	$	1,601,670
ALL allocated by:
Individually evaluated for impairment	$	0	$	0	$	0	$	0	$	0	$	37	$	0	$	37	$	0	$	37
Collectively evaluated for impairment	6,847		1,008		2,120		94		10,069		3,697		209		3,906		448		14,423
	$	6,847	$	1008	$	2,120	$	94	$	10,069	$	3,734	$	209	$	3,943	$	448	$	14,460
December 31, 2018
Loans allocated by:
Individually evaluated for impairment	$	2,320	$	0	$	286	$	0	$	2,606	$	3,691	$	0	$	3,691	$	0	$	6,297
Collectively evaluated for impairment	559,424		49,436		160,678		50,982		820,520		387,429		33,411		420,840		0		1,241,360
	$	561,744	$	49,436	$	160,964	$	50,982	$	823,126	$	391,120	$	33,411	$	424,531	$	0	$	1,247,657
ALL allocated by:
Individually evaluated for impairment	$	0	$	0	$	0	$	0	$	0	$	38	$	0	$	38	$	0	$	38
Collectively evaluated for impairment	6,876		817		1,656		98		9,447		3,715		244		3,959		570		13,976
	$	6,876	$	817	$	1,656	$	98	$	9,447	$	3,753	$	244	$	3,997	$	570	$	14,014


	Three Months Ended				Six Months Ended
(Dollars in thousands)	June 30, 2019		June 30, 2019
Accretable yield, beginning of period	$	1,894	$	2,065
New loans purchased	3,497		3,497
Accretion of income	(1,221)		(1,392)
Reclassifications from nonaccretable difference due to improvement in expected cash flows	617		617
Other changes, net	201		201
Accretable yield, end of period	$	4,988	$	4,988