Note

: Loans Receivable and

Allowance for

oan and

ease

osses

As of

March

31,

2019

and

December 31, 2018,

loans receivable, net, consists of the following:

(In thousands)	March 31, 2019			December 31, 2018
Loan portfolio segment:
Commercial Real Estate	$	291,556			274,938
Residential Real Estate		159,985			157,300
Commercial and Industrial		177,866			191,852
Consumer and Other		95,755			94,569
Construction		45,356			46,040
Construction to Permanent - CRE		18,018			15,677
Loans receivable, gross		788,536			780,376
Allowance for loan and lease losses		(7,823	)		(7,609	)
Loans receivable, net	$	780,713			772,767

Patriot's lending activities are conducted principally in Fairfield and New Haven Counties in Connecticut and Westchester County in New York, and the

five

Boroughs of New York City. Patriot originates commercial real estate loans, commercial business loans, a variety of consumer loans, and construction loans, and has purchased residential loans since

2016.

All commercial and residential real estate loans are collateralized primarily by

first

second

mortgages on real estate. The ability and willingness of borrowers to satisfy their loan obligations is dependent to some degree on the status of the regional economy as well as upon the regional real estate market. Accordingly, the ultimate collectability of a substantial portion of the loan portfolio and the recovery of a substantial portion of any resulting real estate acquired is susceptible to changes in market conditions.

Patriot has established credit policies applicable to each type of lending activity in which it engages and evaluates the creditworthiness of each borrower. Unless extenuating circumstances exist, Patriot limits the extension of credit on commercial real estate loans to

75%

of the market value of the underlying collateral. Patriot’s loan origination policy for multi-family residential real estate is limited to

80%

of the market value of the underlying collateral. In the case of construction loans, the maximum loan-to-value is

75%

of the “as completed” appraised value of the real estate project. Management monitors the appraised value of collateral on an on-going basis and additional collateral is requested when warranted. Real estate is the primary form of collateral, although other forms of collateral do exist and

may

include such assets as accounts receivable, inventory, marketable securities, time deposits, and other business assets.

In connection with the Prime Bank merger in

May 2018,

loans were acquired. A subset of these loans was determined to have evidence of credit deterioration at the acquisition date, which was accounted for in accordance with ASC

310

30.

The purchased credit impaired (“PCI”) loans presently maintain a carrying value of

$439,000

as of

March

31,

2019.

The loans were evaluated for impairment through the periodic reforecasting of expected cash flows.

Income is recognized on PCI loans pursuant to ASC Topic

310

30.

A portion of the fair value discount has been ascribed as an accretable yield that is accreted into interest income over the estimated remaining life of the loans. The remaining non-accretable difference represents cash flows

not

expected to be collected.

A summary of changes in the accretable discount for PCI loans for the

three

months ended

March 31, 2019

follows:

(In thousands)	For the three Months Ended March 31, 2019

Accretable discount, beginning of period	$	(792	)
Accretion		25
Other changes, net		573
Accretable discount, end of period	$	(194	)

The accretion of the accretable discount for PCI loans for the

three

months ended

March

31,

2019

was

$25,000.

The other changes represent primarily loans that were either fully paid-off or totally charged off in the

first

quarter of

2019.

Risk characteristics of the Company’s portfolio classes include the following:

Commercial Real Estate Loans

In underwriting commercial real estate loans, Patriot evaluates both the prospective borrower’s ability to make timely payments on the loan and the value of the property securing the loans. Repayment of such loans

may

be negatively impacted should the borrower default, the value of the property collateralizing the loan substantially decline, or there are declines in general economic conditions. Where the owner occupies the property, Patriot also evaluates the business’ ability to repay the loan on a timely basis and

may

require personal guarantees, lease assignments, and/or the guarantee of the operating company.

Residential Real Estate Loans

2013,

Patriot discontinued offering primary mortgages on personal residences. Repayment of residential real estate loans

may

be negatively impacted should the borrower have financial difficulties, should there be a significant decline in the value of the property securing the loan, or should there be declines in general economic conditions.

During the

three

months ended

March 31, 2019

and

2018,

Patriot purchased

$4.8

million and

of residential real estate loans, respectively.

Commercial and Industrial Loans

Patriot’s commercial and industrial loan portfolio consists primarily of commercial business loans and lines of credit to businesses and professionals. These loans are generally for the financing of accounts receivable, purchases of inventory, purchases of new or used equipment, or for other short- or long-term working capital purposes. These loans are generally secured by business assets, but are also occasionally offered on an unsecured basis. In granting these types of loans, Patriot considers the borrower’s cash flow as the primary source of repayment, supported by the value of collateral, if any, and personal guarantees, as applicable. Repayment of commercial and industrial loans

may

be negatively impacted by adverse changes in economic conditions, ineffective management, claims on the borrower’s assets by others that are superior to Patriot’s claims, a loss of demand for the borrower’s products or services, or the death or disability of the borrower or other key management personnel.

Patriot originates SBA

(a) loans, on which the SBA has historically provided guarantees of up to

percent of the principal balance. The guaranteed portion of the Company’s SBA loans is generally sold in the secondary market with the unguaranteed portion held in the portfolio as a loan held for investment. SBA loans are for the purpose of providing working capital, financing the purchase of equipment, inventory or commercial real estate and for other business purposes. Loans are guaranteed by the businesses' major owners. SBA loans are made based primarily on the historical and projected cash flow of the business and secondarily on the underlying collateral provided.

Patriot’s syndicated and leveraged loan portfolio are included in the commercial and industrial loan classification and are primarily comprised of loan transactions led by major financial institutions and regional banks, which are the Agent Bank or Lead Arranger, and are referred to as syndicated loans or “Shared National Credits (SNC)”. SNC loans were determined to be complementary to the Bank’s existing C&I portfolio and product offerings and provide diversification from Patriot’s typical direct-to-business lines of credit and term facilities. The Bank will participate in senior secured financings for public and privately-owned companies for acquisitions, working capital, recapitalizations, and general corporate purposes. The Bank’s strategy is to participate in these types of loan transactions.

Consumer and Other Loans

Patriot offers individual consumers various forms of credit including installment loans, credit cards, overdraft protection, and reserve lines of credit. Repayments of such loans are generally dependent on the personal income of the borrower, which

may

be negatively impacted by adverse changes in economic conditions. The Company does

not

place a high emphasis on originating these types of loans.

The Company does

not

have any lending programs commonly referred to as subprime lending. Subprime lending generally targets borrowers with weakened credit histories that are typically characterized by payment delinquencies, previous charge-offs, judgments against the consumer, a history of bankruptcies, or borrowers with questionable repayment capacity as evidenced by low credit scores or high debt-burdened ratios.

education loans or other consumer loans were purchased during the

three

months period ended

March

31,

2019

and

2018.

Construction Loans

Construction loans are of a short-term nature, generally of

eighteen

-months or less, that are secured by land intended for commercial, residential, or mixed-use development. Loan proceeds

may

be used for the acquisition of or improvements to the land under development and funds are generally disbursed as phases of construction are completed.

Included in this category are loans to construct single family homes where

contract of sale exists, based upon the experience and financial strength of the builder, the type and location of the property, and other factors. Construction loans tend to be personally guaranteed by the principal(s). Repayment of such loans

may

be negatively impacted by an inability to complete construction, a downturn in the market for new construction, by a significant increase in interest rates, or by decline in general economic conditions.

Construction to Permanent - Commercial Real Estate (“CRE”)

One time close of a construction facility with simultaneous conversion to an amortizing mortgage loan. Construction to Permanent loans combine a short term period similar to a construction loan, generally with a variable rate, and a longer term CRE loan typically

years, resetting every

five

years to the Federal Home Loan Bank (“FHLB”) rate.

Close of the construction facility typically occurs when events dictate, such as receipt of a certificate of occupancy and property stabilization, which is defined as cash flow sufficient to support a pre-defined minimum debt coverage ratio and other conditions and covenants particular to the loan. Construction facilities are typically variable rate instruments that, upon conversion to an amortizing mortgage loan, reset to a fixed rate instrument that is the greater of the in-force variable rate plus a predetermined spread over a reference rate (e.g., prime) or a minimum interest rate.

Allowance for

oan and

ease

osses

The following tables summarize the activity in the allowance for loan and lease losses, allocated to segments of the loan portfolio, for the

three

months ended

March

31,

2019

and

2018:

(In thousands)	Commercial Real Estate			Residential Real Estate		Commercial and Industrial			Consumer and Other			Construction		Construction to Permanent - CRE		Unallocated			Total
Three months ended March 31, 2019
Allowance for loan and lease losses:
December 31, 2018	$	1,866			1,059		3,558			641			350		108		27			7,609
Charge-offs		-			-		-			-			-		-		-			-
Recoveries		-			-		47			2			-		-		-			49
Provisions (credits)		(4	)		330		(115	)		(51	)		5		15		(15	)		165
March 31, 2019	$	1,862			1,389		3,490			592			355		123		12			7,823

Three months ended March 31, 2018
Allowance for loan and lease losses:
December 31, 2017	$	2,212			959		2,023			568			481		54		-			6,297
Charge-offs		-			-		-			-			-		-		-			-
Recoveries		3			-		-			-			-		-		-			3
Provisions (credits)		265			114		(264	)		(22	)		7		7		78			185
March 31, 2018	$	2,480			1,073		1,759			546			488		61		78			6,485

The following tables summarize, by loan portfolio segment, the amount of loans receivable evaluated individually and collectively for impairment as of

March

31,

2019

and

December 31, 2018:

(In thousands)	Commercial Real Estate		Residential Real Estate		Commercial and Industrial		Consumer and Other		Construction		Construction to Permanent - CRE		Unallocated		Total
March 31, 2019
Allowance for loan and lease losses:
Individually evaluated for impairment	$	-		563		1,062		-		-		-		-		1,625
Collectively evaluated for impairment		1,862		826		2,428		592		355		123		12		6,198
Total allowance for loan losses	$	1,862		1,389		3,490		592		355		123		12		7,823

Loans receivable, gross:
Individually evaluated for impairment	$	12,026		3,766		4,598		861		8,800		-		-		30,051
PCI loans individually evaluated for impairment		-		-		439		-		-		-		-		439
Collectively evaluated for impairment		279,530		156,219		172,829		94,894		36,556		18,018		-		758,046
Total loans receivable, gross	$	291,556		159,985		177,866		95,755		45,356		18,018		-		788,536

(In thousands)	Commercial Real Estate		Residential Real Estate		Commercial and Industrial		Consumer and Other		Construction		Construction to Permanent - CRE		Unallocated		Total
December 31, 2018
Allowance for loan and lease losses:
Individually evaluated for impairment	$	-		216		1,299		30		-		-		-		1,545
Collectively evaluated for impairment		1,866		843		2,259		611		350		108		27		6,064
Total allowance for loan losses	$	1,866		1,059		3,558		641		350		108		27		7,609

Loans receivable, gross:
Individually evaluated for impairment	$	4,606		2,302		4,646		864		8,800		-		-		21,218
PCI loans individually evaluated for impairment		-		-		615		-		-		-		-		615
Collectively evaluated for impairment		270,332		154,998		186,591		93,705		37,240		15,677		-		758,543
Total loans receivable, gross	$	274,938		157,300		191,852		94,569		46,040		15,677		-		780,376

Patriot monitors the credit quality of its loans receivable on an ongoing basis. Credit quality is monitored by reviewing certain indicators, including loan to value ratios, debt service coverage ratios, and credit scores.

Patriot employs a risk rating system as part of the risk assessment of its loan portfolio. At origination, lending officers are required to assign a risk rating to each loan in their portfolio, which is ratified or modified by the Loan Committee to which the loan is submitted for approval. If financial developments occur on a loan in the lending officer’s portfolio of responsibility, the risk rating is reviewed and adjusted, as applicable. In carrying out its oversight responsibilities, the Loan Committee can adjust a risk rating based on available information. In addition, the risk ratings on all commercial loans over

$250,000

are reviewed annually by the Credit Department.

Additionally, Patriot retains an objective and independent

third

-party loan review expert to perform a quarterly analysis of the results of its risk rating process. The quarterly review is based on a randomly selected sample of loans within established parameters (e.g., value, concentration), in order to assess and validate the risk ratings assigned to individual loans. Any changes to the assigned risk ratings, based on the quarterly review, are required to be approved by the Loan Committee.

When assigning a risk rating to a loan, management utilizes the Bank’s internal

eleven

-point risk rating system. An asset is considered “special mention” when it has a potential weakness based on objective evidence, but does

not

currently expose the Company to sufficient risk to warrant classification in

one

of the following categories:

●

Substandard: An asset is classified “substandard” if it is

not

adequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Substandard assets have well defined weaknesses based on objective evidence, and are characterized by the distinct possibility that the Company will sustain some loss, if noted deficiencies are

not

corrected.

●

Doubtful: Assets classified as “doubtful” have all of the weaknesses inherent in those classified as “substandard”, with the added characteristic that the identified weaknesses make collection or liquidation-in-full improbable, on the basis of currently existing facts, conditions, and values.

Charge-offs, to reduce the loan to its recoverable value, generally commence after the loan is classified as “doubtful”.

In accordance with Federal Financial Institutions Examination Council published policies establishing uniform criteria for the classification of retail credit based on delinquency status, “Open-end” and “Closed-end” credits are charged off when

180

days and

120

days delinquent, respectively.

If an account is classified as “Loss”, the full balance of the loans receivable is charged off, regardless of the potential recovery from a sale of the underlying collateral. Any amount that

may

be recovered on the sale of collateral underlying a loan is recognized as a “recovery” in the period in which the collateral is sold.

Loan Portfolio Aging Analysis

The following tables summarize performing and non-performing (i.e., non-accruing) loans receivable by portfolio segment, by aging category, by delinquency status as of

March

31,

2019.

(In thousands)	Performing (Accruing) Loans
As of March 31, 2019:	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Performing Loans		Non-accruing Loans		Loans Receivable Gross
Loan portfolio segment:
Commercial Real Estate:
Pass	$	208		-		-		208		272,278		272,486		-		272,486
Special mention		-		-		-		-		2,070		2,070		-		2,070
Substandard		583		431		-		1,014		5,033		6,047		10,953		17,000
		791		431		-		1,222		279,381		280,603		10,953		291,556
Residential Real Estate:
Pass		1,293		-		-		1,293		153,481		154,774		-		154,774
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		1,738		1,738		3,473		5,211
		1,293		-		-		1,293		155,219		156,512		3,473		159,985
Commercial and Industrial:
Pass		454		195		600		1,249		160,419		161,668		-		161,668
Special mention		-		-		100		100		1,932		2,032		-		2,032
Substandard		-		338		-		338		9,196		9,534		4,632		14,166
		454		533		700		1,687		171,547		173,234		4,632		177,866
Consumer and Other:
Pass		1,463		168		8		1,639		93,944		95,583		-		95,583
Substandard		-		-		-		-		-		-		172		172
		1,463		168		8		1,639		93,944		95,583		172		95,755
Construction:
Pass		-		-		-		-		36,556		36,556		-		36,556
Substandard		-		-		-		-		-		-		8,800		8,800
		-		-		-		-		36,556		36,556		8,800		45,356
Construction to Permanent - CRE:
Pass		-		-		-		-		18,018		18,018		-		18,018
		-		-		-		-		18,018		18,018		-		18,018

Total	$	4,001		1,132		708		5,841		754,665		760,506		28,030		788,536

Loans receivable, gross:
Pass	$	3,418		363		608		4,389		734,696		739,085		-		739,085
Special mention		-		-		100		100		4,002		4,102		-		4,102
Substandard		583		769		-		1,352		15,967		17,319		28,030		45,349
Loans receivable, gross	$	4,001		1,132		708		5,841		754,665		760,506		28,030		788,536

The following tables summarize performing and non-performing loans (i.e., non-accruing) receivable by portfolio segment, by aging category, by delinquency status as of

December 31, 2018.

(In thousands)	Performing (Accruing) Loans
As of December 31, 2018:	30 - 5 9 Days Past Due		60 - 89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Performing Loans		Non-accruing Loans		Loans Receivable Gross
Loan portfolio segment:
Commercial Real Estate:
Pass	$	423		-		-		423		262,435		262,858		-		262,858
Special mention		-		-		958		958		2,673		3,631		-		3,631
Substandard		170		-		-		170		4,754		4,924		3,525		8,449
		593		-		958		1,551		269,862		271,413		3,525		274,938
Residential Real Estate:
Pass		637		817		-		1,454		151,509		152,963		-		152,963
Special mention		-		-		-		-		850		850		-		850
Substandard		-		-		-		-		1,481		1,481		2,006		3,487
		637		817		-		1,454		153,840		155,294		2,006		157,300
Commercial and Industrial:
Pass		150		853		234		1,237		180,293		181,530		-		181,530
Special mention		-		-		101		101		2,378		2,479		-		2,479
Substandard		-		-		-		-		3,162		3,162		4,681		7,843
		150		853		335		1,338		185,833		187,171		4,681		191,852
Consumer and Other:
Pass		20		-		23		43		94,352		94,395		-		94,395
Substandard		-		-		-		-		-		-		174		174
		20		-		23		43		94,352		94,395		174		94,569
Construction:
Pass		-		1,000		-		1,000		36,240		37,240		-		37,240
Substandard		-		-		-		-		-		-		8,800		8,800
		-		1,000		-		1,000		36,240		37,240		8,800		46,040
Construction to Permanent - CRE:
Pass		-		-		-		-		15,677		15,677		-		15,677
		-		-		-		-		15,677		15,677		-		15,677

Total	$	1,400		2,670		1,316		5,386		755,804		761,190		19,186		780,376

Loans receivable, gross:
Pass	$	1,230		2,670		257		4,157		740,506		744,663		-		744,663
Special mention		-		-		1,059		1,059		5,901		6,960		-		6,960
Substandard		170		-		-		170		9,397		9,567		19,186		28,753
Loans receivable, gross	$	1,400		2,670		1,316		5,386		755,804		761,190		19,186		780,376

The following tables summarize non-performing (i.e., non-accruing) loans by aging category and status, within the applicable loan portfolio segment as of

March

31,

2019

and

December 31, 2018:

(In thousands)	Non-accruing Loans
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Non-accruing Loans
As of March 31, 2019:
Loan portfolio segment:
Commercial Real Estate:
Substandard	$	-		-		1,011		1,011		9,942		10,953
Residential Real Estate:
Substandard		60		-		2,843		2,903		570		3,473
Commercial and Industrial:
Substandard		-		-		3,913		3,913		719		4,632
Consumer and Other:
Substandard		-		102		70		172		-		172
Construction:
Substandard		-		-		-		-		8,800		8,800
Total non-accruing loans	$	60		102		7,837		7,999		20,031		28,030

As of December 31, 2018:
Loan portfolio segment:
Commercial Real Estate:
Substandard	$	1,580		-		1,945		3,525		-		3,525
Residential Real Estate:
Substandard		-		-		2,006		2,006		-		2,006
Commercial and Industrial:
Substandard		-		15		3,941		3,956		725		4,681
Consumer and Other:
Substandard		-		86		11		97		77		174
Construction:
Substandard		-		-		8,800		8,800		-		8,800
Total non-accruing loans	$	1,580		101		16,703		18,384		802		19,186

If non-accrual loans had been performing in accordance with the original contractual terms, additional interest income of approximately

$275,000

and

$81,000

would have been recognized in income during the

three

months ended

March

31,

2019

and

2018,

respectively.

Additionally, certain loans for which the borrower cannot demonstrate sufficient cash flow to continue loan payments in the future and certain troubled debt restructurings (“TDRs”) are placed on non-accrual status. During the

three

months ended

March

31,

2019

and

2018,

interest income collected and recognized on non-accruing loans were

$150,000

and

$0,

respectively.

The accrual of interest on loans is discontinued at the time the loan is

days past due for payment unless the loan is well-secured and in process of collection. Consumer installment loans are typically charged off

later than

180

days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual status or charged-off, at an earlier date, if collection of principal or interest is considered doubtful. All interest accrued, but

not

collected for loans that are placed on non-accrual status or charged off, is reversed against interest income. The interest on these loans is accounted for on the cash-basis method until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, future payments are reasonably assured, and there is

nine

months of performance. Management considers all non-accrual loans and TDRs to be impaired. In most cases, loan payments that are past due less than

days, based on contractual terms, are considered collection delays and

not

an indication of loan impairment. The Bank considers consumer installment loans to be pools of smaller homogeneous loan balances, which are collectively evaluated for impairment.

Troubled Debt Restructurings (“TDR”)

On a case-by-case basis, Patriot

may

agree to modify the contractual terms of a borrower’s loan to assist customers who

may

be experiencing financial difficulty. If the borrower is experiencing financial difficulties and a concession has been made, the loan is classified as a TDR.

Substantially all TDR loan modifications involve lowering the monthly payments on such loans through either a reduction in interest rate below market rate, an extension of the term of the loan, or a combination of adjusting these

two

contractual attributes. TDR loan modifications

may

result in the forgiveness of principal or accrued interest. In addition, when modifying commercial loans, Patriot frequently obtains additional collateral or guarantor support. If the borrower has performed under the existing contractual terms of the loan and Patriot’s underwriters determine that the borrower has the capacity to continue to perform under the terms of the TDR, the loan continues accruing interest. Non-accruing TDRs

may

be returned to accrual status when there has been a sustained period of performance (generally

six

consecutive months of payments) and both principal and interest are reasonably assured of collection.

The recorded investment in TDRs was

$10.9

million at

March

31,

2019

and

$2.1

million at

December 31, 2018,

respectively.

(In thousands)	March 31, 2019					December 31, 2018
Loan portfolio segment:	Number of Contracts		Recorded Investment			Number of Contracts		Recorded Investment
Commercial Real Estate		2	$	1,073			2	$	1,081
Residential Real Estate		1		292			1		296
Consumer and Other		2		690			2		689
Construction		1		8,800			-		-
Total TDR Loans		6		10,855			5		2,066
Less:
TDRs included in non-accrual loans		1		(8,800	)		-		-
Total accrual TDR Loans		5	$	2,055			5	$	2,066

During the

three

months ended

March 31, 2019,

there was

one

construction loan with a balance of

$8.8

million modified as TDR. The loan was restructured with a maturity and payment concession. The pre-modification and post-modification outstanding recorded investment in the restructured construction loan was

$8.8

million.

The construction loans modified in a TDR often involve reducing the interest rate for the remaining term of the loan, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, extending the interest-only payment period, or substituting or adding a co-borrower or guarantor. There were

loans modified as TDRs and

defaults of TDRs during the

three

months ended

March 31, 2018.

March

31,

2019

and

December 31, 2018,

there were

commitments to advance additional funds under TDRs.

Impaired Loans

Impaired loans

may

consist of non-accrual loans and/or performing and non-performing TDRs. As of

March

31,

2019

and

December 31, 2018,

based on the on-going monitoring and analysis of the loan portfolio, impaired loans of

$30.0

million and

$21.2

million, respectively, were identified, for which

$1.6

million and

$1.5

million specific reserves were established, respectively. Loans

not

requiring specific reserves had sufficient collateral values, less costs to sell, supporting the net investment in the loan which includes principal balance, unamortized fees and costs and accrued interest, if any. Once a borrower is in default, Patriot is under

obligation to advance additional funds on unused commitments.

March

31,

2019

and

December 31, 2018,

exposure to the impaired loans was related to

and

borrowers, respectively. In all cases, appraisal reports of the underlying collateral, if any, have been obtained from independent licensed appraisal firms. For non-performing loans, the independently determined appraised values were reduced by an estimate of the costs to sell the assets, in order to estimate the potential loss, if any, that

may

eventually be realized. Performing loans are monitored to determine when, if at all, additional loan loss reserves

may

be required for a loss of underlying collateral value.

In addition, the remaining

$439,000

PCI loans acquired from Prime Bank acquisition were commercial and industrial loans. The PCI loans were originally recorded at fair value by the Bank on the date of acquisition. At

March

31,

2019,

those loans were considered individually evaluated for impairment, with

allowance recorded.

The following table reflects information about the impaired loans, excluding PCI loans, by class as of

March

31,

2019

and

December 31, 2018:

(In thousands)	March 31, 2019						December 31, 2018
	Recorded Investment		Principal Outstanding		Related Allowance		Recorded Investment		Principal Outstanding		Related Allowance
With no related allowance recorded:
Commercial Real Estate	$	12,026		12,145		-		4,606		5,109		-
Residential Real Estate		1,760		1,768		-		670		703		-
Commercial and Industrial		1,589		1,589		-		488		1,281		-
Consumer and Other		861		861		-		827		867		-
Construction		8,800		8,800		-		8,800		8,839		-
		25,036		25,163		-		15,391		16,799		-

With a related allowance recorded:
Commercial Real Estate		-		-		-		-		-		-
Residential Real Estate		2,006		2,006		563		1,632		1,632		216
Commercial and Industrial		3,009		3,009		1,062		4,158		4,208		1,299
Consumer and Other		-		-		-		37		37		30
Construction		-		-		-		-		-		-
		5,015		5,015		1,625		5,827		5,877		1,545

Impaired Loans, Total:
Commercial Real Estate		12,026		12,145		-		4,606		5,109		-
Residential Real Estate		3,766		3,774		563		2,302		2,335		216
Commercial and Industrial		4,598		4,598		1,062		4,646		5,489		1,299
Consumer and Other		861		861		-		864		904		30
Construction		8,800		8,800		-		8,800		8,839		-
Impaired Loans, Total	$	30,051		30,178		1,625		21,218		22,676		1,545

The following tables summarize additional information regarding impaired loans, excluding PCI loans, by class for the

three

months ended

March

31,

2019

and

2018.

(In thousands)	Three Months Ended March 31,
	2019				2018
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial Real Estate	$	6,440		13		2,205		25
Residential Real Estate		942		4		3,342		3
Commercial and Industrial		775		-		739		-
Consumer and Other		841		8		691		7
Construction		8,800		150		-		-
		17,798		175		6,977		35
With a related allowance recorded:
Commercial Real Estate		472		-		-		-
Residential Real Estate		2,089		-		-		-
Commercial and Industrial		3,863		-		393		-
Consumer and Other		21		-		2		-
Construction		-		-		-		-
		6,445		-		395		-
Impaired Loans, Total:
Commercial Real Estate		6,912		13		2,205		25
Residential Real Estate		3,031		4		3,342		3
Commercial and Industrial		4,638		-		1,132		-
Consumer and Other		862		8		693		7
Construction		8,800		150		-		-
Impaired Loans, Total	$	24,243		175		7,372		35