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LOANS AND ALLOWANCE FOR LOAN LOSSES
 12 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
LOANS AND ALLOWANCE FOR LOAN LOSSES LOANS AND ALLOWANCE FOR LOAN LOSSES
The Company routinely generates 1-4 family mortgages for sale into the secondary market. During 2019, 2018 and 2017, the Company recognized sales proceeds of $1.6 billion, $1.2 billion and $1.4 billion, resulting in mortgage fee income of $41.0 million, $32.3 million and $37.1 million, respectively.

The components of loans in the Consolidated Balance Sheet at December 31, were as follows:
(Dollars in thousands)20192018
Commercial and Non-Residential Real Estate$1,063,828  $941,033  
Residential271,604  294,929  
Home Equity35,106  59,015  
Consumer3,697  9,605  
Total Loans1,374,235  1,304,582  
Deferred loan origination costs and (fees), net306  (216) 
Loans receivable$1,374,541  $1,304,366  

The following table summarizes the primary segments of the loan portfolio as of December 31, 2019 and 2018:
(Dollars in thousands)CommercialResidentialHome EquityConsumerTotal
December 31, 2019
     Individually evaluated for impairment$7,401  $1,953  $95  $34  $9,483  
     Collectively evaluated for impairment1,056,427  269,651  35,011  3,663  1,364,752  
Total Loans$1,063,828  $271,604  $35,106  $3,697  $1,374,235  
December 31, 2018
     Individually evaluated for impairment$9,734  $2,831  $123  $90  $12,778  
     Collectively evaluated for impairment931,299  292,098  58,892  9,515  1,291,804  
Total Loans$941,033  $294,929  $59,015  $9,605  $1,304,582  

On November 21, 2019, the Company entered into a Purchase and Assumption Agreement with Summit Community Bank, Inc., a subsidiary of Summit Financial Group, Inc. pursuant to which Summit will purchase certain assets and assume certain liabilities of three branch locations in Berkeley County, WV and one branch location in Jefferson County, WV. Pursuant to the terms of the Purchase Agreement, Summit has agreed to assume certain deposit liabilities and to acquire certain loans, as well as cash, real property, personal property, and other fixed assets associated with the branch locations. As of December 31, 2019, the balance of loans classified as held for sale as a result of this agreement was $42.9 million.

Loans are considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company also separately evaluates individual consumer loans for impairment. The Chief Credit Officer identifies these loans individually by monitoring the delinquency status of the Bank’s portfolio. Once identified, the Bank’s ongoing communications with the borrower allow Management to evaluate the significance of the payment delays and the circumstances surrounding the loan and the borrower.

Once the determination has been made that a loan is impaired, the amount of the impairment is measured using one of three valuation methods: (a) the present value of expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs. The method is selected on a loan-by-loan
basis, with management primarily utilizing the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made on a quarterly basis.

The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of December 31, 2019 and 2018:
 Impaired Loans with Specific AllowanceImpaired Loans with No Specific AllowanceTotal Impaired Loans
(Dollars in thousands)Recorded InvestmentRelated AllowanceRecorded InvestmentRecorded InvestmentUnpaid Principal Balance
December 31, 2019
Commercial
     Commercial Business$2,606  $249  $644  $3,250  $4,308  
     Commercial Real Estate1,786  325  295  2,081  2,171  
     Acquisition & Development—  —  2,070  2,070  3,467  
          Total Commercial4,392  574  3,009  7,401  9,946  
Residential—  —  1,953  1,953  2,045  
Home Equity—  —  95  95  100  
Consumer—  —  34  34  35  
          Total Impaired Loans$4,392  $574  $5,091  $9,483  $12,126  
December 31, 2018
Commercial
     Commercial Business$4,885  $668  $387  $5,272  $5,292  
     Commercial Real Estate1,842  375  396  2,238  2,300  
     Acquisition & Development—  —  2,224  2,224  3,601  
          Total Commercial6,727  1,043  3,007  9,734  11,193  
Residential—  —  2,831  2,831  2,882  
Home Equity—  —  123  123  123  
Consumer—  —  90  90  316  
          Total Impaired Loans$6,727  $1,043  $6,051  $12,778  $14,514  

Impaired loans have decreased by $3.3 million, or 25.8%, during 2019 This change is the net effect of multiple factors, including principal curtailments of $1.6 million, the reclassification of $1.4 million of previously reported impaired loans to performing loans, partial charge-offs of $999 thousand, the identification of $223 thousand of recently impaired loans, foreclosure and reclassification to other real estate owned of $135 thousand, and normal loan amortization of $474 thousand.

The $1.6 million of principal curtailments were concentrated in one commercial relationship in which the underlying assets were purchased by an unrelated borrower and repurposed in a new business operation, with stronger performance, allowing the new loan to be originated as a performing loan. This relationship represented $1.4 million, or 88% of the total principal curtailments.

The $1.4 million included in the reclassification of previously reported impaired loans to performing loans was concentrated in one residential real estate loan that returned to accrual status after the borrower provided six consecutive, on-time payments, thus allowing the loan to be adjusted to accrual status, and allowing the loan to be considered a performing loan.
The following table presents the average recorded investment in impaired loans and related interest income recognized for the years ended:

December 31, 2019December 31, 2018December 31, 2017
(Dollars in thousands)Average Investment in Impaired LoansInterest Income Recognized on Accrual BasisInterest Income Recognized on Cash BasisAverage Investment in Impaired LoansInterest Income Recognized on Accrual BasisInterest Income Recognized on Cash BasisAverage Investment in Impaired LoansInterest Income Recognized on Accrual BasisInterest Income Recognized on Cash Basis
Commercial
  Commercial Business$3,202  $—  $—  $4,052  $51  $106  $3,718  $155  $113  
  Commercial Real Estate3,220  162  140  6,416  159  94  3,199  100  98  
  Acquisition & Development2,151  123  131  1,367  106  8  3,429  9  13  
    Total Commercial8,573  285  271  11,835  316  208  10,346  264  224  
Residential2,719  16  16  2,569  20  14  1,424  13  53  
Home Equity154  2  2  100  2  1  538  1  1  
Consumer45  —  —  149  —  —  187  —  —  
Total$11,491  $303  $289  $14,653  $338  $223  $12,495  $278  $278  

As of December 31, 2019, the Bank held eleven foreclosed residential real estate properties representing $571 thousand, or 40.9%, of the total balance of other real estate owned. These properties are held as a result of the foreclosures of primarily two commercial loan relationships, one of which included two properties for a total of $294 thousand, while the other included seven properties for a total of $163 thousand. The three remaining properties, totaling $115 thousand, were the result of the foreclosure of two unrelated borrowers. There are seven additional consumer mortgage loans collateralized by residential real estate property in the process of foreclosure. The total recorded investment in these loans was $586 thousand as of December 31, 2019. These loans are included in the table above and have a total of $0 in specific allowance allocated to them.

Bank management uses a nine point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized, and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. Any portion of a loan that has been or is expected to be charged off is placed in the Loss category.

To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as past due status, bankruptcy, repossession, or death occurs to raise awareness of a possible credit event. The Bank’s Chief Credit Officer is responsible for the timely and accurate risk rating of the loans in the portfolio at origination and on an ongoing basis. The Credit Department ensures that a review of all commercial relationships of one million dollars or greater is performed annually.

Review of the appropriate risk grade is included in both the internal and external loan review process, and on an ongoing basis. The Bank has an experienced Credit Department that continually reviews and assesses loans within the portfolio. The Bank engages an external consultant to conduct independent loan reviews on at least an annual basis. Generally, the external consultant reviews larger commercial relationships or criticized relationships. The Bank’s Credit Department compiles detailed reviews, including plans for resolution, on loans classified as Substandard on a quarterly basis. Loans in the Special Mention and Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance.
The following table represents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of December 31, 2019 and 2018:
(Dollars in thousands)PassSpecial MentionSubstandardDoubtfulTotal
December 31, 2019
Commercial
     Commercial Business$511,590  $17,398  $11,894  $—  $540,882  
     Commercial Real Estate406,712  3,564  1,494  —  411,770  
     Acquisition & Development106,428  1,869  2,879  —  111,176  
          Total Commercial1,024,730  22,831  16,267  —  1,063,828  
Residential267,367  1,946  2,177  114  271,604  
Home Equity34,641  383  82  —  35,106  
Consumer3,613  56  28  —  3,697  
          Total Loans$1,330,351  $25,216  $18,554  $114  $1,374,235  
December 31, 2018
Commercial
     Commercial Business$432,589  $5,290  $5,652  $—  $443,531  
     Commercial Real Estate371,309  2,071  2,181  —  375,561  
     Acquisition & Development118,754  179  2,879  129  121,941  
          Total Commercial922,652  7,540  10,712  129  941,033  
Residential290,602  2,608  1,600  119  294,929  
Home Equity58,100  876  39  —  59,015  
Consumer9,359  164  19  63  9,605  
          Total Loans$1,280,713  $11,188  $12,370  $311  $1,304,582  

Loans classified as Special Mention totaled $25.2 million and $11.2 million as of December 31, 2019 and December 31, 2018, respectively. The increase of $14.0 million, or 125.4%, was concentrated in the commercial loan portfolio. This increase is primarily the result of the risk grade downgrade of six loans to unrelated borrowers, totaling $19.7 million, offset by the payoff of two existing loans totaling $3.3 million, and normal loan amortization of the loans in the classification. Of the five loans recently classified as Special Mention, the largest balance of $8.3 million, or 59.3% of the increase, is a note secured by subordinate bonds related to a sales-tax increment financing district, which have not been refinanced as timely as anticipated due to delays in the reissuance of senior position bonds. Ongoing development of the district is expected to allow for the refinance of the subordinate bonds in 2020. A second loan, in the amount of $3.4 million, is secured by a senior care facility which has continued to supplement operating results with its liquid assets. Recent changes to its revenue strategy are expected to result in improved performance. A third loan, in the amount of $2.9 million, is secured by a multifamily rental property that has not performed as intended due to a lack of demand from a nearby university. The property is being remarketed to area professionals and is expected to report improved performance. The fourth loan is a $1.9 million note secured by residential lots adjacent to a hotel resort property. The loan is amortizing and has paid as agreed, however, the risk grade was adjusted due to potential legal issues associated with the primary guarantor. The fifth loan is a $1.8 million government lease transaction that has reported potential payment issues, and the last of the six loans is a $1.6 million commercial real estate loan to a non-profit that has reported less than expected cash flow performance. These matters are being monitored and any significant developments will result in reevaluation of the risk grades.

Loans classified as Substandard totaled $18.6 million and $12.4 million as of December 31, 2019 and December 31, 2018, respectively. The increase of $6.2 million, or 50%, was concentrated in the commercial loan portfolio. The increase is primarily the result of the risk grade downgrade of four loans to two unrelated borrowers, totaling $8.1 million, offset by the partial charge off of a loan totaling $989 thousand, the risk grade upgrade of a $1.0 million loan, and the payoff of two existing loans totaling $1.4 million. Of the four loans recently classified as Substandard, three loans totaling $6.1 million were each provided to a single borrower to finance the acquisition of equipment to be used in the coal industry. Repayment performance has been unsatisfactory and there are no significant expectations of improvement within the industry. The fourth loan, in the amount of $2.0 million, is secured by a senior care facility that has struggled to collect its receivables and government reimbursements in a timely manner, which has placed considerable strain on operating performance, which are not expected to be corrected in the short term. These matters are being monitored and any significant developments will result in reevaluation of the risk grades.

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due.
A loan that has deteriorated and requires additional collection efforts by the Bank could warrant non-accrual status. A thorough review is presented to the Chief Credit Officer and/or the Management Loan Committee (“MLC”), as required with respect to any loan which is in a collection process and to make a determination as to whether the loan should be placed on non-accrual status. The placement of loans on non-accrual status is subject to applicable regulatory restrictions and guidelines. Generally, loans should be placed in non-accrual status when the loan reaches 90 days past due, when it becomes likely the borrower cannot or will not make scheduled principal or interest payments, when full repayment of principal and interest is not expected, or when the loan displays potential loss characteristics. Normally, all accrued interest is charged off when a loan is placed in non-accrual status, unless Management believes it is likely the accrued interest will be collected. Any payments subsequently received are applied to principal. To remove a loan from non-accrual status, all principal and interest due must be paid up to date and the Bank is reasonably sure of future satisfactory payment performance. Usually, this requires a six-month recent history of payments due. Removal of a loan from non-accrual status will require the approval of the Chief Credit Officer and or MLC.

The following table presents the classes of the loan portfolio summarized by aging categories of performing loans and nonaccrual loans as of December 31, 2019 and 2018:
(Dollars in thousands)Current30-59 Days Past Due60-89 Days Past Due90+ Days Past DueTotal Past DueTotal LoansNon-Accrual90+ Days Still Accruing
December 31, 2019
Commercial
     Commercial Business$537,602  $3,189  $47  $44  $3,280  $540,882  $2,848  $—  
     Commercial Real Estate411,070  522  178  —  700  411,770  295  —  
     Acquisition & Development110,717  180  —  279  459  111,176  390  —  
          Total Commercial1,059,389  3,891  225  323  4,439  1,063,828  3,533  —  
Residential267,515  3,003  549  537  4,089  271,604  1,461  —  
Home Equity34,382  545  84  95  724  35,106  95  —  
Consumer3,610  1  58  28  87  3,697  34  —  
          Total Loans$1,364,896  $7,440  $916  $983  $9,339  $1,374,235  $5,123  $—  
December 31, 2018
Commercial
     Commercial Business$432,097  $6,380  $1,746  $3,308  $11,434  $443,531  $3,684  $—  
     Commercial Real Estate374,880  681  —  —  681  375,561  385  —  
     Acquisition & Development121,644  —  —  297  297  121,941  426  —  
          Total Commercial928,621  7,061  1,746  3,605  12,412  941,033  4,495  —  
Residential291,665  1,000  760  1,504  3,264  294,929  2,442  —  
Home Equity58,575  400  40  —  440  59,015  84  —  
Consumer9,485  28  10  82  120  9,605  82  —  
          Total Loans$1,288,346  $8,489  $2,556  $5,191  $16,236  $1,304,582  $7,103  $—  

An allowance for loan losses (“ALL”) is maintained to absorb losses from the loan portfolio. The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of non-performing loans.

Interest income on loans would have increased by approximately $582 thousand, $771 thousand, and $423 thousand for 2019, 2018 and 2017, respectively, if loans had performed in accordance with their terms.

The Bank’s methodology for determining the ALL is based on the requirements of ASC Section 310-10-35 for loans individually evaluated for impairment (discussed above) and ASC Subtopic 450-20 for loans collectively evaluated for impairment, as well as the Interagency Policy Statements on the Allowance for Loan and Lease Losses and other bank regulatory guidance. The total of the two components represents the Bank’s ALL. As of the quarter ended September 30, 2017, the Bank adjusted its methodology to allow for the analysis of certain impaired loans in homogeneous pools, rather than on an individual basis, when those loans are below specific thresholds based on outstanding principal balance. More specifically, residential mortgage loans, home equity lines of credit, and consumer loans, when considered impaired, are evaluated collectively for impairment by applying allocation rates derived from the Bank’s historical losses specific to impaired loans and the reserve totaled $139 thousand and $204 thousand as of December 31, 2019 and 2018, respectively.
Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. For general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are modified by qualified factors.

The segments described above, which are based on the Federal call code assigned to each loan, provide the starting point for the ALL analysis. Company and Bank management track the historical net charge-off activity at the call code level. A historical charge-off factor is calculated utilizing a defined number of consecutive historical quarters. All pools currently utilize a rolling 12 quarters.

“Pass” rated credits are segregated from “Criticized” credits for the application of qualitative factors. Loans in the criticized pools, which possess certain qualities or characteristics that may lead to collection and loss issues, are closely monitored by management and subject to additional qualitative factors.

Company and Bank management have identified a number of additional qualitative factors which it uses to supplement the historical charge-off factor because these factors are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience. The additional factors that are evaluated quarterly and updated using information obtained from internal, regulatory, and governmental sources are: lending policies and procedures, nature and volume of the portfolio, experience and ability of lending management and staff, volume and severity of problem credits, conclusion of loan reviews, audits, and exams, changes in the value of underlying collateral, effect of concentrations of credit from a loan type, industry and/or geographic standpoint, changes in economic and business conditions, consumer sentiment, and other external factors. The combination of historical charge-off and qualitative factors are then weighted for each risk grade. These weightings are determined internally based upon the likelihood of loss as a loan risk grading deteriorates.

To estimate the liability for off-balance sheet credit exposures, Bank management analyzed the portfolios of letters of credit, non-revolving lines of credit, and revolving lines of credit, and based its calculation on the expectation of future advances of each loan category. Letters of credit were determined to be highly unlikely to advance since they are generally in place only to ensure various forms of performance of the borrowers. In the Bank’s history, there have been no letters of credit drawn upon. In addition, many of the letters of credit are cash secured and do not warrant an allocation. Non-revolving lines of credit were determined to be highly likely to advance as these are typically construction lines. Meanwhile, the likelihood of revolving lines of credit advancing varies with each individual borrower. Therefore, the future usage of each line was estimated based on the average line utilization of the revolving line of credit portfolio as a whole.

Once the estimated future advances were calculated, an allocation rate, which was derived from the Bank’s historical losses and qualitative environmental factors, was applied in the similar manner as those used for the allowance for loan loss calculation. The resulting estimated loss allocations were totaled to determine the liability for unfunded commitments related to these loans, which Management considers necessary to anticipate potential losses on those commitments that have a reasonable probability of funding. The liability for unfunded commitments was $332 thousand and $284 thousand as of December 31, 2019 and 2018, respectively.

Bank management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL.

The following tables summarize the primary segments of the ALL, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of December 31, 2019, 2018, and 2017. Activity in the allowance is presented for the periods indicated:

(Dollars in thousands)CommercialResidentialHome EquityConsumerTotal
ALL balance at December 31, 2018$8,605  $1,405  $684  $245  $10,939  
     Charge-offs(998) —  —  (10) (1,008) 
     Recoveries1  1  4  49  55  
     Provision2,490  (134) (361) (206) 1,789  
ALL balance at December 31, 2019$10,098  $1,272  $327  $78  $11,775  
Individually evaluated for impairment$574  $—  $—  $—  $574  
Collectively evaluated for impairment$9,524  $1,272  $327  $78  $11,201  
(Dollars in thousands)CommercialResidentialHome EquityConsumerTotal
ALL balance at December 31, 2017$7,804  $1,119  $705  $250  $9,878  
     Charge-offs(1,024) (166) —  (290) (1,480) 
     Recoveries15  22  59  5  101  
     Provision1,810  430  (80) 280  2,440  
ALL balance at December 31, 2018$8,605  $1,405  $684  $245  $10,939  
Individually evaluated for impairment$1,043  $—  $—  $—  $1,043  
Collectively evaluated for impairment$7,562  $1,405  $684  $245  $9,896  

(Dollars in thousands)CommercialResidentialHome EquityConsumerTotal
ALL balance at December 31, 2016$7,181  $990  $728  $202  $9,101  
     Charge-offs(1,138) (141) (109) (109) (1,497) 
     Recoveries39  40  4  18  101  
     Provision1,722  230  82  139  2,173  
ALL balance at December 31, 2017$7,804  $1,119  $705  $250  $9,878  
Individually evaluated for impairment$1,172  $—  $—  $16  $1,188  
Collectively evaluated for impairment$6,632  $1,119  $705  $234  $8,690  

The allowance for loan losses is based on estimates, and actual losses will vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the portfolio at any given date.

Troubled Debt Restructurings

The restructuring of a loan is considered a troubled debt restructuring (“TDR”) if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. At December 31, 2019 and 2018, the Bank had specific reserve allocations for TDR’s of $527 thousand and $1.0 million, respectively.

Loans considered to be troubled debt restructured loans totaled $7.7 million and $8.0 million as of December 31, 2019 and December 31, 2018, respectively. Of these totals, $4.4 million and $4.2 million, respectively, represent accruing troubled debt restructured loans and represent 46% and 33%, respectively, of total impaired loans. Meanwhile, as of December 31, 2019, $3.0 million represent four loans to two borrowers that have defaulted under the restructured terms. The largest of these loans, at $2.3 million, is a restructured commercial loan to a company previously dependent on the coal industry, which is now structured as an unsecured loan. The other three of these loans, totaling $679 thousand, are commercial acquisition and development loans that were considered TDR’s due to extended interest only periods and/or unsatisfactory repayment structures once transitioned to principal and interest payments. These borrowers have experienced continued financial difficulty and are considered non-performing loans as of December 31, 2019. These two development loans were also considered non-performing loans as of December 31, 2018.

During the year ended December 31, 2019, no restructured loan defaulted under their modified terms that were not already classified as non-performing for having previously defaulted under their modified terms.

There were no commitments to advance funds to any TDRs as of December 31, 2019.
The following table presents details related to loans identified as Troubled Debt Restructurings during the years ended December 31, 2019 and 2018.
New TDR’s 1
December 31, 2019December 31, 2018
(Dollars in thousands)Number of ContractsPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded InvestmentNumber of ContractsPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded Investment
Commercial
     Commercial Business2  $336  $333  2  $272  $210  
     Commercial Real Estate—  —  —  1  11  11  
     Acquisition & Development—  —  —  1  1,798  1,798  
          Total Commercial2  336  333  4  2,081  2,019  
Residential3  246  323  —  —  —  
Home Equity—  —  —  1  39  39  
Consumer—  —  —  1  10  8  
          Total5  $582  $656  6  $2,130  $2,066  
1 The pre-modification and post-modification balances represent the balances outstanding immediately before and after modification of the loan.