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Loans and Allowance for Loan Losses
 9 Months Ended
Sep. 30, 2016
Loans and Allowance for Loan Losses [Abstract]  
LOANS AND ALLOWANCE FOR LOAN LOSSES

NOTE 4 – LOANS AND ALLOWANCE FOR LOAN LOSSES

 

Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or payoffs, are reported at their outstanding principal balances adjusted for any charge-offs, the allowance for loan losses, any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Interest income is reported on the interest method and includes amortization of net deferred loan fees and costs over the loan term. Generally, all loan classes are placed on non-accrual status not later than 90 days past due, unless the loan is well-secured and in the process of collection. All interest accrued, but not collected, for loans that are placed on non-accrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

 

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the non-collectability of a loan balance is probable. Subsequent recoveries, if any, are credited to the allowance.

 

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as new information becomes available.

 

The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical charge-off experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected on the historical loss or risk rating data.

 

A loan is considered impaired when, based on current information and events, it is probable that State Bank 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. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration each 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. Impairment is measured on a loan-by-loan basis for commercial, agricultural, and construction loans by either the present value of 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.

 

When State Bank moves a loan to non-accrual status, total unpaid interest accrued to date is reversed from income. Subsequent payments are applied to the outstanding principal balance with the interest portion of the payment recorded on the balance sheet as a contra-loan. Interest received on impaired loans may be realized once all contractual principal amounts are received or when a borrower establishes a history of six consecutive timely principal and interest payments. It is at the discretion of management to determine when a loan is placed back on accrual status upon receipt of six consecutive timely payments.

 

Large groups of smaller balance homogenous loans are collectively evaluated for impairment. Accordingly, State Bank does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower.

  

Categories of loans at September 30, 2016 and December 31, 2015 include:

 

    Total Loans     Non-Accrual Loans  
($ in thousands)   Sept. 2016     Dec. 2015     Sept. 2016     Dec. 2015  
                         
Commercial & Industrial   $ 100,951     $ 86,542       146       188  
Commercial RE & Construction     268,408       242,208       1,393       5,670  
Agricultural & Farmland     54,609       43,835       5       7  
Residential Real Estate     139,757       130,806       1,152       749  
Consumer & Other     55,333       54,224       193       32  
                                 
Total Loans   $ 619,058     $ 557,615     $ 2,889     $ 6,646  
                                 
Unearned Income   $ 294     $ 44                  
                                 
Total Loans, net of unearned income   $ 619,352     $ 557,659                  
                                 
Allowance for loan losses   $ (7,320 )   $ (6,990 )                

  

The following tables present the activity in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of September 30, 2016, December 31, 2015 and September 30, 2015.

 

    Commercial     Commercial
RE &		     Agricultural     Residential     Consumer        
    & Industrial     Construction     & Farmland     Real Estate     & Other     Total  
                                     
ALLOWANCE FOR LOAN AND LEASE LOSSES      
For the Three Months Ended - September 30, 2016                  
                                     
Beginning balance   $ 1,137     $ 4,126     $ 189     $ 1,342     $ 656     $ 7,450  
Charge Offs     (42 )     (30 )     -       -       (64 )   $ (136 )
Recoveries     1       -       1       1       3       6  
Provision     155       (960 )     142       460       203       -  
Ending Balance   $ 1,251     $ 3,136     $ 332     $ 1,803     $ 798     $ 7,320  
                                                 
For the Nine Months Ended - September 30, 2016                            
                                                 
Beginning balance   $ 914     $ 3,886     $ 204     $ 1,312     $ 674     $ 6,990  
Charge Offs     (134 )     (30 )     -       -       (68 )   $ (232 )
Recoveries     248       6       2       1       55       312  
Provision     223       (726 )     126       490       137       250  
Ending Balance   $ 1,251     $ 3,136     $ 332     $ 1,803     $ 798     $ 7,320  
                                                 
Loans Receivable at September 30, 2016                  
Allowance:                                                
Ending balance:                                                
individually evaluated for impairment   $ -     $ 127     $ -     $ 148     $ 19     $ 294  
Ending balance:                                                
collectively evaluated for impairment   $ 1,251     $ 3,009     $ 332     $ 1,655     $ 779     $ 7,026  
Loans:                                                
Ending balance:                                                
individually evaluated for impairment   $ -     $ 1,772     $ -     $ 1,874     $ 346     $ 3,992  
Ending balance:                                                
collectively evaluated for impairment   $ 100,951     $ 266,636     $ 54,609     $ 137,883     $ 54,987     $ 615,066  

 

    Commercial     Commercial
RE &		     Agricultural     Residential     Consumer        
($'s in thousands)   & Industrial     Construction     & Farmland     Real Estate     & Other     Total  
                                     
Loans Receivable at December 31, 2015                        
Allowance:                                    
Ending balance:                                    
individually evaluated for impairment   $ -     $ 1,759     $ -     $ 167     $ 37     $ 1,963  
Ending balance:                                                
collectively evaluated for impairment   $ 914     $ 2,127     $ 204     $ 1,145     $ 637     $ 5,027  
Loans:                                                
Ending balance:                                                
individually evaluated for impairment   $ 126     $ 5,754     $ -     $ 1,713     $ 464     $ 8,057  
Ending balance:                                                
collectively evaluated for impairment   $ 86,416     $ 236,454     $ 43,835     $ 129,093     $ 53,760     $ 549,558  

 

    Commercial     Commercial RE &     Agricultural     Residential     Consumer        
($'s in thousands)   & Industrial     Construction     & Farmland     Real Estate     & Other     Total  
                                     
ALLOWANCE FOR LOAN AND LEASE LOSSES      
For the Three Months Ended - September 30, 2015                  
                                     
Beginning balance   $ 1,488     $ 3,066     $ 261     $ 1,410     $ 781     $ 7,006  
Charge Offs     -       (53 )     -       (4 )     (1 )   $ (58 )
Recoveries     1       -       1       23       4       29  
Provision     (621 )     997       (40 )     (154 )     (82 )     100  
Ending Balance   $ 868     $ 4,010     $ 222     $ 1,275     $ 702     $ 7,076  
                                                 
For the Nine Months Ended - September 30, 2015                                      
                                                 
Beginning balance   $ 1,630     $ 2,857     $ 208     $ 1,308     $ 768     $ 6,771  
Charge Offs     (309 )     (303 )     -       (65 )     (34 )   $ (711 )
Recoveries     22       3       3       28       10       66  
Provision     (475 )     1,453       11       4       (43 )     950  
Ending Balance   $ 868     $ 4,010     $ 222     $ 1,275     $ 701     $ 7,076  

  

The risk characteristics of each loan portfolio segment are as follows:

 

Commercial and Agricultural

 

Commercial and agricultural loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and may include a personal guarantee. Short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers.

Commercial Real Estate including Construction

 

Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The characteristics of properties securing the Company’s commercial real estate portfolio are diverse, but with geographic location almost entirely in the Company’s market area. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In general, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate versus non-owner-occupied loans.

 

Construction loans are underwritten utilizing feasibility studies, independent appraisal reviews and financial analysis of the developers and property owners. Construction loans are generally based on estimates of costs and value associated with the completed project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing.

 

Residential and Consumer

 

Residential and consumer loans consist of two segments – residential mortgage loans and personal loans. Residential mortgage loans are secured by 1-4 family residences and are generally owner-occupied, and the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer personal loans are secured by consumer personal assets, such as automobiles or recreational vehicles. Some consumer personal loans are unsecured, such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas, such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that these loans are of smaller individual amounts and spread over a large number of borrowers.

 

The following tables present the credit risk profile of the Company’s loan portfolio based on rating category and payment activity as of September 30, 2016 and December 31, 2015.

 

September 30, 2016   Commercial     Commercial
RE &		     Agricultural     Residential     Consumer        
($ in thousands)   & Industrial     Construction     & Farmland     Real Estate     & Other     Total  
                                     
1-2   $ 1,207     $ 44     $ 40     $ 338     $ 4     $ 1,633  
3     27,841       84,276       9,661       111,581       52,185       285,544  
4     71,312       176,270       44,908       25,801       2,824       321,115  
Total Pass (1 - 4)     100,360       260,590       54,609       137,720       55,013       608,292  
                                                 
Special Mention (5)     -       4,419       -       566       62       5,047  
Substandard (6)     150       2,006       -       408       64       2,628  
Doubtful (7)     441       1,394       -       1,063       193       3,091  
Loss (8)     -       -       -       -       -       -  
Total Loans   $ 100,951     $ 268,408     $ 54,609     $ 139,757     $ 55,333     $ 619,058  

 

December 31, 2015   Commercial     Commercial RE &     Agricultural     Residential     Consumer        
($ in thousands)   & Industrial     Construction     & Farmland     Real Estate     & Other     Total  
                                     
1-2   $ 709     $ 767     $ 47     $ -     $ 15     $ 1,538  
3     23,362       79,915       8,195       118,463       50,745       280,680  
4     61,799       149,473       35,593       10,418       3,223       260,506  
Total Pass (1 - 4)     85,870       230,155       43,835       128,881       53,983       542,724  
                                                 
Special Mention (5)     330       5,260       -       756       70       6,416  
Substandard (6)     110       1,072       -       420       139       1,741  
Doubtful (7)     232       5,721       -       749       32       6,734  
Loss (8)     -       -       -       -       -       -  
Total Loans   $ 86,542     $ 242,208     $ 43,835     $ 130,806     $ 54,224     $ 557,615  

  

The Company evaluates the loan risk grading system definitions and allowance for loan loss methodology on an ongoing basis.

 

Credit Risk Profile

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes loans with an outstanding balance greater than $100 thousand and non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings:

 

Pass (grades 1 – 4): Loans which management has determined to be performing as expected and in agreement with the terms established at the time of loan origination.

 

Special Mention (5): Assets have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. Special mention assets are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Ordinarily, special mention credits have characteristics which corrective management action would remedy.

 

Substandard (6): Loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

  

Doubtful (7): Loans classified as doubtful have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of current known facts, conditions and values, highly questionable and improbable.

 

Loss (8): Loans are considered uncollectable and of such little value that continuing to carry them as assets on the Company’s financial statement is not feasible. Loans will be classified Loss when it is neither practical nor desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future.

 

The following tables present the Company’s loan portfolio aging analysis as of September 30, 2016 and December 31, 2015.

 

($ in thousands)   30-59 Days     60-89 Days     Greater Than     Total Past           Total Loans  
September 30, 2016   Past Due     Past Due     90 Days     Due     Current     Receivable  
                                     
Commercial & Industrial   $ -     $ -     $ 110     $ 110     $ 100,841     $ 100,951  
Commercial RE & Construction     56       909       1,135       2,100       266,308       268,408  
Agricultural & Farmland     -       -       -       -       54,609       54,609  
Residential Real Estate     -       55       233       288       139,469       139,757  
Consumer & Other     17       51       181       249       55,084       55,333  
Total Loans   $ 73     $ 1,015     $ 1,659     $ 2,747     $ 616,311     $ 619,058  

 

($ in thousands)   30-59 Days     60-89 Days     Greater Than     Total Past           Total Loans  
December 31, 2015   Past Due     Past Due     90 Days     Due     Current     Receivable  
                                     
Commercial & Industrial   $ -     $ 60     $ 188     $ 248     $ 86,294     $ 86,542  
Commercial RE & Construction     99       -       5,280       5,379       236,829       242,208  
Agricultural & Farmland     -       -       -       -       43,835       43,835  
Residential Real Estate     98       198       156       452       130,354       130,806  
Consumer & Other     64       -       2       66       54,158       54,224  
Total Loans   $ 261     $ 258     $ 5,626     $ 6,145     $ 551,470     $ 557,615  

  

All loans past due 90 days are systematically placed on nonaccrual status.

 

A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable State Bank will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection.

The following tables present impaired loan information as of and for the three and nine months ended September 30, 2016 and 2015, and for the twelve months ended December 31, 2015:

 

Nine Months Ended 
September 30, 2016		   Recorded     Unpaid Principal     Related     Average Recorded     Interest Income  
($'s in thousands)   Investment     Balance     Allowance     Investment     Recognized  
With no related allowance recorded:                              
Commercial & Industrial   $ -     $ -     $ -     $ -     $ -  
Commercial RE & Construction     637       637       -       658       16  
Agricultural & Farmland     -       -       -       -       -  
Residential Real Estate     987       1,031       -       1,195       51  
Consumer & Other     20       78       -       94       6  
All Impaired Loans < $100,000     398       398       -       398       -  
With a specific allowance recorded:                                        
Commercial & Industrial     -       -       -       -       -  
Commercial RE & Construction     1,135       1,385       127       1,404       -  
Agricultural & Farmland     -       -       -       -       -  
Residential Real Estate     887       887       148       957       29  
Consumer & Other     268       268       19       272       11  
Totals:                                        
Commercial & Industrial   $ -     $ -     $ -     $ -     $ -  
Commercial RE & Construction   $ 1,772     $ 2,022     $ 127     $ 2,062     $ 16  
Agricultural & Farmland   $ -     $ -     $ -     $ -     $ -  
Residential Real Estate   $ 1,874     $ 1,918     $ 148     $ 2,152     $ 80  
Consumer & Other   $ 346     $ 346     $ 19     $ 366     $ 17  
All Impaired Loans < $100,000   $ 398     $ 398     $ -     $ 398     $ -  

 

Three Months Ended
September 30, 2016		   Average Recorded     Interest Income  
($'s in thousands)   Investment     Recognized  
With no related allowance recorded:            
Commercial & Industrial   $ -     $ -  
Commercial RE & Construction     647       6  
Agricultural & Farmland     -       -  
Residential Real Estate     1,186       17  
Consumer & Other     89       2  
All Impaired Loans < $100,000     438       -  
With a specific allowance recorded:                
Commercial & Industrial     -       -  
Commercial RE & Construction     1,404       -  
Agricultural & Farmland     -       -  
Residential Real Estate     945       10  
Consumer & Other     267       2  
Totals:                
Commercial & Industrial   $ -     $ -  
Commercial RE & Construction   $ 2,051     $ 6  
Agricultural & Farmland   $ -     $ -  
Residential Real Estate   $ 2,131     $ 27  
Consumer & Other   $ 356     $ 4  
All Impaired Loans < $100,000   $ 438     $ -  

Twelve Months Ended 
December 31, 2015		   Recorded     Unpaid Principal     Related     Average Recorded     Interest Income  
($'s in thousands)   Investment     Balance     Allowance     Investment     Recognized  
With no related allowance recorded:                              
Commercial & Industrial   $ 126     $ 1,214     $ -     $ 1,388     $ -  
Commercial RE & Construction     1,110       1,110       -       1,206       27  
Agricultural & Farmland     -       -       -       -       -  
Residential Real Estate     657       657       -       862       52  
Consumer & Other     90       90       -       107       9  
All Impaired Loans < $100,000     131       131       -       131       -  
With a specific allowance recorded:                                        
Commercial & Industrial     -       -       -       -       -  
Commercial RE & Construction     4,644       4,893       1,759       5,006       90  
Agricultural & Farmland     -       -       -       -       -  
Residential Real Estate     1,056       1,013       167       1,084       45  
Consumer & Other     374       374       37       385       22  
Totals:                                        
Commercial & Industrial   $ 126     $ 1,214     $ -     $ 1,388     $ -  
Commercial RE & Construction   $ 5,754     $ 6,003     $ 1,759     $ 6,212     $ 117  
Agricultural & Farmland   $ -     $ -     $ -     $ -     $ -  
Residential Real Estate   $ 1,713     $ 1,670     $ 167     $ 1,946     $ 97  
Consumer & Other   $ 464     $ 464     $ 37     $ 492     $ 31  
All Impaired Loans < $100,000   $ 131     $ 131     $ -     $ 131     $ -  

 

    Nine Months Ended     Three Months Ended  
    Average Recorded     Interest Income     Average Recorded     Interest Income  
September 30, 2015   Investment     Recognized     Investment     Recognized  
With no related allowance recorded:                        
Commercial & Industrial   $ 316     $ -     $ 316     $ -  
Commercial RE & Construction     704       25       797       6  
Agricultural & Farmland     -       -       -       -  
Residential Real Estate     673       38       859       8  
Consumer & Other     114       7       125       3  
All Impaired Loans < $100,000     344       -       344       -  
With a specific allowance recorded:                                
Commercial & Industrial     19       -       1,080       -  
Commercial RE & Construction     4,949       13       1,954       3  
Agricultural & Farmland     -       -       -       -  
Residential Real Estate     1,025       33       1,080       10  
Consumer & Other     337       17       362       5  
Totals:                                
Commercial & Industrial   $ 335     $ -     $ 1,396     $ -  
Commercial RE & Construction   $ 5,653     $ 38     $ 2,751     $ 9  
Agricultural & Farmland   $ -     $ -     $ -     $ -  
Residential Real Estate   $ 1,698     $ 71     $ 1,939     $ 18  
Consumer & Other   $ 451     $ 24     $ 487     $ 8  
All Impaired Loans < $100,000   $ 344     $ -     $ 344     $ -  

 

Impaired loans less than $100,000 are included in groups of homogenous loans. These loans are evaluated based on delinquency status.

 

Interest income recognized on a cash basis does not materially differ from interest income recognized on an accrual basis.

 

Troubled Debt Restructured (TDR) Loans

 

TDRs are modified loans where a concession was provided to a borrower experiencing financial difficulties. Loan modifications are considered TDRs when the concessions provided are not available to the borrower through either normal channels or other sources. However, not all loan modifications are TDRs.

  

TDR Concession Types

 

The Company’s standards relating to loan modifications consider, among other factors, minimum verified income requirements, cash flow analysis, and collateral valuations. Each potential loan modification is reviewed individually and the terms of the loan are modified to meet a borrower’s specific circumstances at a point in time. All loan modifications, including those classified as TDRs, are reviewed and approved. The types of concessions provided to borrowers include:

 

● Interest rate reduction: A reduction of the stated interest rate to a nonmarket rate for the remaining original life of the loan. The Company also may grant interest rate concessions for a limited timeframe on a case by case basis.

 

● Amortization or maturity date change: A change in the amortization or maturity date beyond what the collateral supports, including a concession that does any of the following:

 

(1) Lengthens the amortization period of the amortized principal beyond market terms. This concession reduces the minimum monthly payment and increases the amount of the balloon payment at the end of the term of the loan. Principal is generally not forgiven.

 

(2) Reduces the amount of loan principal to be amortized. This concession also reduces the minimum monthly payment and increases the amount of the balloon payment at the end of the term of the loan. Principal is generally not forgiven.

 

(3) Extends the maturity date or dates of the debt beyond what the collateral supports. This concession generally applies to loans without a balloon payment at the end of the term of the loan. In addition, there may be instances where renewing loans potentially require non-market terms and would then be reclassified as TDRs.

 

● Other: A concession that is not categorized as one of the concessions described above. These concessions include, but are not limited to: principal forgiveness, collateral concessions, covenant concessions, and reduction of accrued interest. Principal forgiveness may result from any TDR modification of any concession type.

The following presents the activity of TDRs during the three and nine months ended September 30, 2016 and 2015.

 

    Three Months ended Sep. 30, 2016  
($ in thousands)   Number of Loans     Pre- Modification 
Recorded Balance		     Post Modification
Recorded Balance		  
                   
Residential Real Estate     -     $ -     $ -  
Commercial     1       309       309  
Consumer & Other     -       -       -  
                         
Total Modifications     1     $ 309     $ 309  

 

    Interest                 Total  
    Only     Term     Combination     Modification  
                         
Residential Real Estate   $             -     $ -     $                  -     $    -  
Commercial     -       309       -       309  
Consumer & Other     -       -       -       -  
                                 
Total Modifications   $ -     $ 309     $ -     $ 309  

 

There was no increase in the allowance for loan losses due to TDR's in the three month period ended Sep. 30, 2016.

 

    Nine Months ended Sep. 30, 2016  
($ in thousands)   Number of Loans     Pre- Modification 
Recorded Balance		     Post Modification
Recorded Balance		  
                   
Residential Real Estate            -     $ -     $ -  
Commercial     1       309       309  
Consumer & Other     1       221       221  
                         
Total Modifications     2     $ 530     $ 530  

 

    Interest                 Total  
    Only     Term     Combination     Modification  
                         
Residential Real Estate   $               -     $ -     $                  -     $ -  
Commercial     -       309       -       309  
Consumer & Other     -       221       -       221  
                                 
Total Modifications   $ -     $ 530     $ -     $ 530  

  

There was no increase in the allowance for loan losses due to TDR's in the nine month period ended Sep. 30, 2016.

 

      Three Months ended Sep. 30, 2015
($ in thousands)     Number of Loans       Pre- Modification 
Recorded Balance		       Post Modification
Recorded Balance		  
                         
Residential Real Estate     -     $     -     $   -  
Commercial     -       -       -  
Consumer & Other     -       -       -  
                         
Total Modifications     -     $ -     $ -  

 

      Interest                       Total  
      Only       Term       Combination       Modification  
                                 
Residential Real Estate   $ -     $ -     $   -     $     -  
Consumer & Other     -       -       -       -  
                                 
Total Modifications   $ -     $ -     $ -     $ -  

 

There was no increase in the allowance for loan losses due to TDR's in the three month period ended Sep. 30, 2015.

 

    Nine Months ended Sep. 30, 2015  
($ in thousands)   Number of Loans     Pre- Modification 
Recorded Balance		     Post Modification
Recorded Balance		  
                   
Residential Real Estate     1     $ 24     $ 24  
Consumer & Other     -       -       -  
                         
Total Modifications     1     $ 24     $ 24  

 

    Interest                 Total  
    Only     Term     Combination     Modification  
                         
Residential Real Estate   $             -     $ 24     $                   -     $ 24  
Consumer & Other     -       -       -       -  
                                 
Total Modifications   $ -     $ 24     $ -     $ 24  

 

There was no increase in the allowance for loan losses due to TDR's in the nine month period ended Sep. 30, 2015. TDR's modified in 2016 that have subsequently defaulted

 

    Number of     Recorded  
($ in thousands)   Contracts     Balance  
             
Consumer & Other     1     $ 221  
                 
           1           221  

 

There were no TDR's modified during 2015 that have subsequently defaulted.