Non-performing Assets Including Troubled Debt Restructurings (TDR)

9 Months Ended

Sep. 30, 2018

Nonperforming Assets Including Troubled Debt Restructurings [Abstract]

Non Performing Assets Including Troubled Debt Restructurings TDR [Text Block]

11.

Non-performing Assets Including Troubled Debt Restructurings (TDR)

The following table presents information concerning non-performing assets including TDR (in thousands, except percentages):

	September 30, 2018			December 31, 2017
Non-accrual loans
Commercial and industrial	$	—		$	353
Commercial loans secured by owner occupied real estate		—			859
Commercial loans secured by non-owner occupied real estate		11			547
Real estate – residential mortgage		893			1,257
Total		904			3,016
Other real estate owned
Commercial loans secured by owner occupied real estate		157			—
Real estate – residential mortgage		6			18
Total		163			18
TDR’s not in non-accrual		—			—
Total non-performing assets including TDR	$	1,067		$	3,034
Total non-performing assets as a percent of loans, net of unearned income, and other real estate owned		0.12	%		0.34%

The Company had no loans past due 90 days or more for the periods presented which were accruing interest.

The following table sets forth, for the periods indicated, (1) the gross interest income that would have been recorded if non-accrual loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination if held for part of the period, (2) the amount of interest income actually recorded on such loans, and (3) the net reduction in interest income attributable to such loans (in thousands).

	Three months ended September 30,				Nine months ended September 30,
	2018		2017		2018		2017
Interest income due in accordance
with original terms	$	12	$	32	$	61	$	65
Interest income recorded		—		—		—		—
Net reduction in interest income	$	12	$	32	$	61	$	65

Consistent with accounting and regulatory guidance, the Bank recognizes a TDR when the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that would not normally be considered. Regardless of the form of concession granted, the Bank’s objective in offering a TDR is to increase the probability of repayment of the borrower’s loan.

The Company had no loans modified as TDRs during the three and nine month periods ending September 30, 2018.

The following table details the loans modified as TDRs during the nine month period ended September 30, 2017 (dollars in thousands).

Loans in non-accrual status

# of Loans

Current Balance

Concession Granted

Commercial loan

678

Extension of maturity date with

interest only period

In all instances where loans have been modified in troubled debt restructurings the pre- and post- modified balances are the same. As of September 30, 2018, there was no specific ALL for the one loan modified as a TDR. The specific ALL reserve for loans modified as TDR’s was $390,000 as of September 30, 2017. All TDR’s are individually evaluated for impairment and a related allowance is recorded, as needed.

The Company had no loans that were classified as TDR’s or were subsequently modified during each 12-month period prior to the current reporting periods, which begin January 1, 2018 and 2017 (nine month periods) and July 1, 2018 and 2017 (three month periods), respectively, and that subsequently defaulted during these reporting periods.

The Company is unaware of any additional loans which are required to either be charged-off or added to the non-performing asset totals disclosed above.