LOANS AND ALLOWANCE FOR LOAN LOSSES

The composition of the loan portfolio, net of deferred origination fees and costs, is summarized as follows (in thousands):



	September 30, 2016		December 31, 2015
Commercial and agricultural:
Commercial and industrial	$	183,508	$	192,197
Agricultural	406		1,036
Commercial mortgages:
Construction	35,051		41,131
Commercial mortgages, other	540,710		465,347
Residential mortgages	197,665		195,778
Consumer loans:
Credit cards	1,352		1,483
Home equity lines and loans	98,378		101,726
Indirect consumer loans	141,489		151,327
Direct consumer loans	18,007		18,608
Total loans, net of deferred origination fees and costs	$	1,216,566	$	1,168,633
Interest receivable on loans	2,912		2,870
Total recorded investment in loans	$	1,219,478	$	1,171,503

The Corporation's concentrations of credit risk by loan type are reflected in the preceding table. The concentrations of credit risk with standby letters of credit, committed lines of credit and commitments to originate new loans generally follow the loan classifications in the table above.

The following tables present the activity in the allowance for loan losses by portfolio segment for the three and nine month periods ended September 30, 2016 and 2015 (in thousands):



	Three Months Ended September 30, 2016
Allowance for loan losses	Commercial and Agricultural			Commercial Mortgages			Residential Mortgages			Consumer Loans			Total
Beginning balance	$	1,771		$	7,754		$	1,504		$	3,639		$	14,668
Charge-offs	(104		)	(52		)	(7		)	(280		)	(443		)
Recoveries	15			1			—			34			50
Net recoveries (charge-offs)	(89		)	(51		)	(7		)	(246		)	(393		)
Provision	101			520			50			379			1,050
Ending balance	$	1,783		$	8,223		$	1,547		$	3,772		$	15,325



	Three Months Ended September 30, 2015
Allowance for loan losses	Commercial and Agricultural			Commercial Mortgages			Residential Mortgages		Consumer Loans			Total
Beginning balance	$	1,825		$	6,625		$	1,545	$	4,033		$	14,028
Charge-offs	(113		)	(1		)	—		(304		)	(418		)
Recoveries	26			17			—		62			105
Net recoveries (charge-offs)	(87		)	16			—		(242		)	(313		)
Provision	(162		)	326			7		136			307
Ending balance	$	1,576		$	6,967		$	1,552	$	3,927		$	14,022



	Nine Months Ended September 30, 2016
Allowance for loan losses	Commercial and Agricultural			Commercial Mortgages			Residential Mortgages			Consumer Loans			Total
Beginning balance:	$	1,831		$	7,112		$	1,464		$	3,853		$	14,260
Charge-offs:	(121		)	(52		)	(65		)	(995		)	(1,233		)
Recoveries:	65			10			—			190			265
Net recoveries (charge-offs)	(56		)	(42		)	(65		)	(805		)	(968		)
Provision	8			1,153			148			724			2,033
Ending balance	$	1,783		$	8,223		$	1,547		$	3,772		$	15,325



	Nine Months Ended September 30, 2015
Allowance for loan losses	Commercial and Agricultural			Commercial Mortgages			Residential Mortgages			Consumer Loans			Total
Beginning balance:	$	1,460		$	6,326		$	1,572		$	4,328		$	13,686
Charge-offs:	(113		)	(29		)	(32		)	(917		)	(1,091		)
Recoveries:	64			101			—			306			471
Net recoveries (charge-offs)	(49		)	72			(32		)	(611		)	(620		)
Provision	165			569			12			210			956
Ending balance	$	1,576		$	6,967		$	1,552		$	3,927		$	14,022

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2016 and December 31, 2015 (in thousands):



	September 30, 2016
Allowance for loan losses:	Commercial and Agricultural		Commercial Mortgages		Residential Mortgages		Consumer Loans		Total
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	100	$	1,748	$	—	$	141	$	1,989
Collectively evaluated for impairment	1,683		6,416		1,522		3,631		13,252
Loans acquired with deteriorated credit quality	—		59		25		—		84
Total ending allowance balance	$	1,783	$	8,223	$	1,547	$	3,772	$	15,325



	December 31, 2015
Allowance for loan losses:	Commercial and Agricultural		Commercial Mortgages		Residential Mortgages		Consumer Loans		Total
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	8	$	1,481	$	—	$	77	$	1,566
Collectively evaluated for impairment	1,823		5,572		1,424		3,776		12,595
Loans acquired with deteriorated credit quality	—		59		40		—		99
Total ending allowance balance	$	1,831	$	7,112	$	1,464	$	3,853	$	14,260



	September 30, 2016
Loans:	Commercial and Agricultural		Commercial Mortgages		Residential Mortgages		Consumer Loans		Total
Loans individually evaluated for impairment	$	846	$	11,542	$	399	$	458	$	13,245
Loans collectively evaluated for impairment	183,502		563,833		197,648		259,412		1,204,395
Loans acquired with deteriorated credit quality	—		1,743		95		—		1,838
Total ending loans balance	$	184,348	$	577,118	$	198,142	$	259,870	$	1,219,478



	December 31, 2015
Loans:	Commercial and Agricultural		Commercial Mortgages		Residential Mortgages		Consumer Loans		Total
Loans individually evaluated for impairment	$	1,498	$	12,773	$	235	$	474	$	14,980
Loans collectively evaluated for impairment	192,202		493,102		195,731		273,393		1,154,428
Loans acquired with deteriorated credit quality	—		1,825		270		—		2,095
Total ending loans balance	$	193,700	$	507,700	$	196,236	$	273,867	$	1,171,503

The following table presents loans individually evaluated for impairment recognized by class of loans as of September 30, 2016 and December 31, 2015 (in thousands):



	September 30, 2016						December 31, 2015
With no related allowance recorded:	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
Commercial and agricultural:
Commercial and industrial	$	740	$	746	$	—	$	1,487	$	1,489	$	—
Commercial mortgages:
Construction	285		286		—		349		350		—
Commercial mortgages, other	5,963		5,996		—		7,551		7,577		—
Residential mortgages	399		399		—		234		235		—
Consumer loans:
Home equity lines and loans	97		98		—		107		108		—
With an allowance recorded:
Commercial and agricultural:
Commercial and industrial	100		100		100		9		9		8
Commercial mortgages:
Commercial mortgages, other	5,327		5,260		1,748		4,913		4,846		1,481
Consumer loans:
Home equity lines and loans	360		360		141		364		366		77
Total	$	13,271	$	13,245	$	1,989	$	15,014	$	14,980	$	1,566

The following table presents the average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans as of the three and nine month periods ended September 30, 2016 and 2015 (in thousands):



	Three Months Ended September 30, 2016				Three Months Ended September 30, 2015				Nine Months Ended September 30, 2016				Nine Months Ended September 30, 2015
With no related allowance recorded:	Average Recorded Investment		Interest Income Recognized (1)		Average Recorded Investment		Interest Income Recognized (1)		Average Recorded Investment		Interest Income Recognized (1)		Average Recorded Investment		Interest Income Recognized (1)
Commercial and agricultural:
Commercial and industrial	$	900	$	10	$	1,133	$	15	$	1,083	$	33	$	1,325	$	47
Commercial mortgages:
Construction	310		4		402		4		329		11		1,153		33
Commercial mortgages, other	6,124		60		7,556		70		6,760		181		7,765		196
Residential mortgages	443		2		241		1		358		3		246		3
Consumer loans:
Home equity lines & loans	101		1		479		6		104		4		468		18
With an allowance recorded:
Commercial and agricultural:
Commercial and industrial	45		1		165		—		29		4		180		3
Commercial mortgages:
Commercial mortgages, other	5,151		1		4,975		1		4,998		4		4,418		48
Consumer loans:
Home equity lines and loans	360		—		—		—		362		—		13		—
Total	$	13,434	$	79	$	14,951	$	97	$	14,023	$	240	$	15,568	$	348

(1)Cash basis interest income approximates interest income recognized.

The following tables present the recorded investment in non-accrual and loans past due 90 days or more and still accruing by class of loans as of September 30, 2016 and December 31, 2015 (in thousands):



	Non-accrual				Loans Past Due 90 Days or More and Still Accruing
	September 30, 2016		December 31, 2015		September 30, 2016		December 31, 2015
Commercial and agricultural:
Commercial and industrial	$	10	$	13	$	1	$	3
Agricultural	—		—		—		—
Commercial mortgages:
Construction	20		63		—		—
Commercial mortgages, other	6,577		7,203		—		—
Residential mortgages	4,225		3,610		—		—
Consumer loans:
Credit cards	—		—		11		15
Home equity lines and loans	1,653		758		—		—
Indirect consumer loans	298		542		—		—
Direct consumer loans	120		43		—		—
Total	$	12,903	$	12,232	$	12	$	18

The following tables present the aging of the recorded investment in loans as of September 30, 2016 and December 31, 2015 (in thousands):



	September 30, 2016
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total Past Due		Loans Acquired with Deteriorated Credit Quality		Loans Not Past Due		Total
Commercial and agricultural:
Commercial and industrial	$	32	$	1	$	1	$	34	$	—	$	183,907	$	183,941
Agricultural	—		—		—		—		—		407		407
Commercial mortgages:
Construction	—		—		—		—		—		35,134		35,134
Commercial mortgages, other	848		5,513		3,316		9,677		1,743		530,564		541,984
Residential mortgages	1,697		928		2,160		4,785		95		193,262		198,142
Consumer loans:
Credit cards	11		6		11		28		—		1,324		1,352
Home equity lines and loans	272		190		1,174		1,636		—		96,993		98,629
Indirect consumer loans	1,651		416		184		2,251		—		139,566		141,817
Direct consumer loans	90		22		98		210		—		17,862		18,072
Total	$	4,601	$	7,076	$	6,944	$	18,621	$	1,838	$	1,199,019	$	1,219,478



	December 31, 2015
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total Past Due		Loans Acquired with Deteriorated Credit Quality		Loans Not Past Due		Total
Commercial and agricultural:
Commercial and industrial	$	398	$	3	$	12	$	413	$	—	$	192,248	$	192,661
Agricultural	—		—		—		—		—		1,039		1,039
Commercial mortgages:
Construction	—		—		—		—		—		41,231		41,231
Commercial mortgages, other	4,197		199		5,239		9,635		1,825		455,009		466,469
Residential mortgages	2,983		725		1,703		5,411		270		190,555		196,236
Consumer loans:
Credit cards	30		4		15		49		—		1,433		1,482
Home equity lines and loans	233		77		239		549		—		101,428		101,977
Indirect consumer loans	1,744		4		447		2,195		—		149,531		151,726
Direct consumer loans	208		—		19		227		—		18,455		18,682
Total	$	9,793	$	1,012	$	7,674	$	18,479	$	2,095	$	1,150,929	$	1,171,503

Troubled Debt Restructurings:

A modification of a loan may result in classification as a TDR when a borrower is experiencing financial difficulty and the modification constitutes a concession. The Corporation offers various types of modifications which may involve a change in the schedule of payments, a reduction in the interest rate, an extension of the maturity date, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, requesting additional collateral, releasing collateral for consideration, substituting or adding a new borrower or guarantor, a permanent reduction of the recorded investment in the loan or a permanent reduction of the interest on the loan.

As of September 30, 2016 and December 31, 2015, the Corporation has a recorded investment in TDRs of $11.0 million and $12.0 million, respectively. There were specific reserves of $1.6 million and $1.4 million allocated for TDRs at September 30, 2016 and December 31, 2015, respectively. As of September 30, 2016, TDRs totaling $6.0 million were accruing interest under the modified terms and $5.0 million were on non-accrual status. As of December 31, 2015, TDRs totaling $7.6 million were accruing interest under the modified terms and $4.4 million were on non-accrual status. The Corporation had committed no additional amounts as of September 30, 2016, to customers with outstanding loans that are classified as TDRs. The Corporation had committed additional amounts up to $0.1 million as of December 31, 2015, to customers with outstanding loans that are classified as TDRs.

During the three months ended September 30, 2016, no loans were modified as TDRs. During the three months ended September 30, 2015, the terms of one loan was modified as a TDR. The modification of the terms of a commercial real estate loan during the three months ended September 30, 2015 included extending the maturity date and a corresponding reduction of the scheduled amortized payments of the loan due to the longer term.

During the nine months ended September 30, 2016 and 2015, the terms of certain loans were modified as TDRs. The modification of the terms of a residential mortgage loan during the nine months ended September 30, 2016 included an extension of the maturity date by thirteen years at a stated interest rate lower than the current market rate for new debt with similar risk and a corresponding reduction of the scheduled amortization payments of the loan due to the longer term. The modification of the terms of five commercial real estate loans and one residential home equity loan during the nine months ended September 30, 2016 included consolidating the loans into one commercial real estate loan and extending the maturity date at a stated interest rate lower than the current market rate for new debt with similar risk. The modification of the terms of a residential mortgage loan performed during the nine months ended September 30, 2016 included a reduction in the stated interest rate for three years and a corresponding reduction of the scheduled amortized payments of the loan due to the lower interest rate. Additionally, $4 thousand of interest and past due escrow payments were capitalized on the restructured loan. In addition to the modifications noted above, the modification of the terms of a commercial real estate loan during the nine months ended September 30, 2015 included a reduction of the scheduled amortized payments of the loan for the remaining term of the loan. Additionally, the modification of the terms of a commercial loan performed during the nine months ended September 30, 2015 included renewing a line of credit and extending the maturity date at a rate lower than the current market rate.

There were no loans modified as TDRs during the three months ended September 30, 2016.

The following table presents loans by class modified as TDRs that occurred during the three months ended September 30, 2015 (dollars in thousands):



September 30, 2015	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled debt restructurings:
Commercial mortgages:
Commercial mortgages	1	$	432	$	432
Total	1	$	432	$	432

The TDRs described above did not increase the allowance for loan losses and resulted in no charge-offs during the three months ended September 30, 2015.

The following table presents loans by class modified as TDRs that occurred during the nine months ended September 30, 2016 and 2015 (dollars in thousands):



September 30, 2016	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled debt restructurings:
Commercial mortgages:
Commercial mortgages	5	$	312	$	310
Residential mortgages	2	295		307
Consumer loans:
Home equity lines and loans	1	74		74
Total	8	$	681	$	691



September 30, 2015	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled debt restructurings:
Commercial and agricultural:
Commercial and industrial	1	$	477	$	477
Commercial mortgages:
Commercial mortgages	2	542		542
Total	3	$	1,019	$	1,019

The TDRs described above did not increase the allowance for loan losses and resulted in no charge-offs during the nine months ended September 30, 2016. The TDRs described above increased the allowance for loan losses by less than $0.1 million and resulted in no charge-offs during the nine months ended September 30, 2015.

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. There were no payment defaults on any loans previously modified as TDRs within twelve months following the modification during the three months ended September 30, 2016. The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification during the nine months ended September 30, 2016:

The TDRs that subsequently defaulted described above did not increase the allowance for loan losses and resulted in no charge offs during the nine months ended September 30, 2016.

There were no payment defaults on any loans previously modified as TDRs within twelve months following the modification during the three and nine months ended September 30, 2015.

Credit Quality Indicators

The Corporation establishes a risk rating at origination for all commercial loans. The main factors considered in assigning risk ratings include, but are not limited to: historic and future debt service coverage, collateral position, operating performance, liquidity, leverage, payment history, management ability, and the customer’s industry. Commercial relationship managers monitor all loans in their respective portfolios for any changes in the borrower’s ability to service their debt and affirm the risk ratings for the loans at least annually.

For the retail loans, which include residential mortgages, indirect and direct consumer loans, home equity lines and loans, and credit cards, once a loan is properly approved and closed, the Corporation evaluates credit quality based upon loan repayment.

The Corporation uses the risk rating system to identify criticized and classified loans. Commercial relationships within the criticized and classified risk ratings are analyzed quarterly. The Corporation uses the following definitions for criticized and classified loans (which are consistent with regulatory guidelines):

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 or the institution’s credit position at some future date.

Substandard – Loans classified as substandard are inadequately protected by the current net worth and paying capability 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.

Commercial loans not meeting the criteria above to be considered criticized or classified are considered to be pass rated loans. Loans listed as not rated are included in groups of homogeneous loans performing under terms of the loan notes. Based on the analyses performed as of September 30, 2016 and December 31, 2015, the risk category of the recorded investment of loans by class of loans is as follows (in thousands):



	September 30, 2016
	Not Rated		Pass		Special Mention		Substandard		Doubtful		Loans acquired with deteriorated credit quality		Total
Commercial and agricultural:
Commercial and industrial	$	—	$	179,867	$	2,281	$	1,693	$	100	$	—	$	183,941
Agricultural	—		407		—				—		—		407
Commercial mortgages:
Construction	—		33,678		1,436		20		—		—		35,134
Commercial mortgages	—		514,628		8,446		12,531		4,636		1,743		541,984
Residential mortgages	193,822		—		—		4,225		—		95		198,142
Consumer loans:
Credit cards	1,352		—		—		—		—		—		1,352
Home equity lines and loans	96,976		—		—		1,653		—		—		98,629
Indirect consumer loans	141,519		—		—		298		—		—		141,817
Direct consumer loans	17,952		—		—		120		—		—		18,072
Total	$	451,621	$	728,580	$	12,163	$	20,540	$	4,736	$	1,838	$	1,219,478



	December 31, 2015
	Not Rated		Pass		Special Mention		Substandard		Doubtful		Loans acquired with deteriorated credit quality		Total
Commercial and agricultural:
Commercial and industrial	$	—	$	186,359	$	3,772	$	2,521	$	9	$	—	$	192,661
Agricultural	—		1,039		—		—		—		—		1,039
Commercial mortgages:
Construction	—		40,881		287		63		—		—		41,231
Commercial mortgages	—		437,549		8,437		14,454		4,204		1,825		466,469
Residential mortgages	192,245		—		—		3,721		—		270		196,236
Consumer loans:
Credit cards	1,482		—		—		—		—		—		1,482
Home equity lines and loans	101,219		—		—		758		—		—		101,977
Indirect consumer loans	151,184		—		—		542		—		—		151,726
Direct consumer loans	18,639		—		—		43		—		—		18,682
Total	$	464,769	$	665,828	$	12,496	$	22,102	$	4,213	$	2,095	$	1,171,503

The Corporation considers the performance of the loan portfolio and its impact on the allowance for loan losses. For residential and consumer loan classes, the Corporation also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in residential and consumer loans based on payment activity as of September 30, 2016 and December 31, 2015 (in thousands):



	September 30, 2016
			Consumer Loans
	Residential Mortgages		Credit Card		Home Equity Lines and Loans		Indirect Consumer Loans		Other Direct Consumer Loans
Performing	$	193,917	$	1,352	$	96,976	$	141,519	$	17,952
Non-Performing	4,225		—		1,653		298		120
	$	198,142	$	1,352	$	98,629	$	141,817	$	18,072



	December 31, 2015
			Consumer Loans
	Residential Mortgages		Credit Card		Home Equity Lines and Loans		Indirect Consumer Loans		Other Direct Consumer Loans
Performing	$	192,626	$	1,482	$	101,219	$	151,184	$	18,639
Non-Performing	3,610		—		758		542		43
	$	196,236	$	1,482	$	101,977	$	151,726	$	18,682

At the time of the merger with Fort Orange Financial Corp., the Corporation identified certain loans with evidence of deteriorated credit quality, and the probability that the Corporation would be unable to collect all contractually required payments from the borrower. These loans are classified as PCI loans. The Corporation adjusted its estimates of future expected losses, cash flows, and renewal assumptions on the PCI loans during the current year. These adjustments were made for changes in expected cash flows due to loans refinanced beyond original maturity dates, impairments recognized subsequent to the acquisition, advances made for taxes or insurance to protect collateral held and payments received in excess of amounts originally expected.

The table below summarizes the changes in total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and carrying value of the PCI loans from from July 1, 2016 to September 30, 2016 and July 1, 2015 to September 30, 2015 (in thousands):



Three Months Ended September 30, 2016	Balance at June 30, 2016			Income Accretion		All Other Adjustments			Balance at September 30, 2016
Contractually required principal and interest	$	2,492		$	—	$	(60	)	$	2,432
Contractual cash flows not expected to be collected (nonaccretable discount)	(374		)	—		(33		)	(407		)
Cash flows expected to be collected	2,118			—		(93		)	2,025
Interest component of expected cash flows (accretable yield)	(243		)	26		30			(187		)
Fair value of loans acquired with deteriorating credit quality	$	1,875		$	26	$	(63	)	$	1,838



Three Months Ended September 30, 2015	Balance at June 30, 2015			Income Accretion		All Other Adjustments			Balance at September 30, 2015
Contractually required principal and interest	$	3,036		$	—	$	(69	)	$	2,967
Contractual cash flows not expected to be collected (nonaccretable discount)	(568		)	—		19			(549		)
Cash flows expected to be collected	2,468			—		(50		)	2,418
Interest component of expected cash flows (accretable yield)	(324		)	39		(19		)	(304		)
Fair value of loans acquired with deteriorating credit quality	$	2,144		$	39	$	(69	)	$	2,114

For those purchased credit impaired loans disclosed above, the Corporation did not increase the allowance for loan losses during the three months ended September 30, 2016 or 2015. The Corporation did not reverse any allowance for loan losses during the three months ended September 30, 2016 or 2015.

The tables below summarizes the changes in total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and carrying value of the PCI loans from January 1, 2016 to September 30, 2016 and January 1, 2015 to September 30, 2015 (in thousands):



Nine Months Ended September 30, 2016	Balance at December 31, 2015			Income Accretion		All Other Adjustments			Balance at September 30, 2016
Contractually required principal and interest	$	2,912		$	—	$	(480	)	$	2,432
Contractual cash flows not expected to be collected (nonaccretable discount)	(506		)	—		99			(407		)
Cash flows expected to be collected	2,406			—		(381		)	2,025
Interest component of expected cash flows (accretable yield)	(311		)	96		28			(187		)
Fair value of loans acquired with deteriorating credit quality	$	2,095		$	96	$	(353	)	$	1,838



Nine Months Ended September 30, 2015	Balance at December 31, 2014			Income Accretion		All Other Adjustments			Balance at September 30, 2015
Contractually required principal and interest	$	3,621		$	—	$	(654	)	$	2,967
Contractual cash flows not expected to be collected (nonaccretable discount)	(570		)	—		21			(549		)
Cash flows expected to be collected	3,051			—		(633		)	2,418
Interest component of expected cash flows (accretable yield)	(420		)	138		(22		)	(304		)
Fair value of loans acquired with deteriorating credit quality	$	2,631		$	138	$	(655	)	$	2,114

For those purchased credit impaired loans disclosed above, the Corporation decreased the allowance for loan losses by $15 thousand and $5 thousand during the nine months ended September 30, 2016 and 2015, respectively. The Corporation did not reverse any allowance for losses during the nine months ended September 30, 2016 or 2015.

Number of Loans

Recorded Investment

Commercial mortgages:

Commercial mortgages