(5)	Loans and Allowance for Loan Losses

The following table presents the recorded investment in loans by loan class:

	September 30, 2015
(dollars in thousands)	New York and
	other states*		Florida		Total
Commercial:
Commercial real estate	$	170,185		15,734		185,919
Other		22,776		99		22,875
Real estate mortgage - 1 to 4 family:
First mortgages		2,093,433		554,788		2,648,221
Home equity loans		51,852		7,871		59,723
Home equity lines of credit		308,239		48,098		356,337
Installment		7,666		1,264		8,930
Total loans, net	$	2,654,151		627,854		3,282,005
Less: Allowance for loan losses						45,149
Net loans					$	3,236,856

	December 31, 2014
(dollars in thousands)	New York and
	other states*		Florida		Total
Commercial:
Commercial real estate	$	174,788		19,336		194,124
Other		29,200		58		29,258
Real estate mortgage - 1 to 4 family:
First mortgages		2,041,140		476,427		2,517,567
Home equity loans		51,713		5,942		57,655
Home equity lines of credit		308,764		43,370		352,134
Installment		6,774		820		7,594
Total loans, net	$	2,612,379		545,953		3,158,332
Less: Allowance for loan losses						46,327
Net loans					$	3,112,005

*Includes New York, New Jersey, Vermont and Massachusetts

At September 30, 2015 and December 31, 2014, the Company had approximately $28.3 million and $38.5 million of real estate construction loans, respectively. Of the $28.3 million in real estate construction loans at September 30, 2015, approximately $12.0 million are secured by first mortgages to residential borrowers while approximately $16.3 million were to commercial borrowers for residential construction projects. Of the $38.5 million in real estate construction loans at December 31, 2014, approximately $17.6 million are secured by first mortgages to residential borrowers while approximately $20.9 million were to commercial borrowers for residential construction projects. The vast majority of construction loans are in the Company’s New York market.

TrustCo lends in the geographic territory of its branch locations in New York, Florida, Massachusetts, New Jersey and Vermont. Although the loan portfolio is diversified, a portion of its debtors’ ability to repay depends significantly on the economic conditions prevailing in the respective geographic territory.

The following table presents the recorded investment in non-accrual loans by loan class:

	September 30, 2015
(dollars in thousands)	New York and
Loans in non-accrual status:	other states		Florida		Total

Commercial:
Commercial real estate	$	3,699		-		3,699
Other		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		22,637		1,723		24,360
Home equity loans		154		-		154
Home equity lines of credit		3,268		331		3,599
Installment		69		9		78
Total non-accrual loans		29,827		2,063		31,890
Restructured real estate mortgages - 1 to 4 family		50		-		50
Total nonperforming loans	$	29,877		2,063		31,940

(dollars in thousands)	December 31, 2014
	New York and
Loans in non-accrual status:	other states		Florida		Total

Commercial:
Commercial real estate	$	3,835		-		3,835
Other		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		23,643		2,488		26,131
Home equity loans		349		-		349
Home equity lines of credit		3,229		252		3,481
Installment		77		13		90
Total non-accrual loans		31,133		2,753		33,886
Restructured real estate mortgages - 1 to 4 family		125		-		125
Total nonperforming loans	$	31,258		2,753		34,011

The Company transfers loans to other real estate owned, at fair value less cost to sell, in the period the Company obtains physical possession of the property (through legal title or through a deed in lieu). As of September 30, 2015 and December 31, 2014, other real estate owned included $3.6 million and $4.2 million, respectively, of residential foreclosed properties. In addition, non‐accrual residential mortgage loans that are in the process of foreclosure had a recorded investment of $16.3 million and $17.5 million as of September 30, 2015 and December 31, 2014, respectively.

The following tables present the aging of the recorded investment in past due loans by loan class and by region as of September 30, 2015 and December 31, 2014:

New York and other states:
	September 30, 2015
(dollars in thousands)	30-59		60-89		90+		Total
	Days		Days		Days		30+ days				Total
	Past Due		Past Due		Past Due		Past Due		Current		Loans
Commercial:
Commercial real estate	$	109		-		2,790		2,899		167,286		170,185
Other		-		-		-		-		22,776		22,776
Real estate mortgage - 1 to 4 family:
First mortgages		2,878		1,467		15,378		19,723		2,073,710		2,093,433
Home equity loans		103		-		149		252		51,600		51,852
Home equity lines of credit		271		225		1,453		1,949		306,290		308,239
Installment		113		20		37		170		7,496		7,666
Total	$	3,474		1,712		19,807		24,993		2,629,158		2,654,151

Florida:

(dollars in thousands)	30-59		60-89		90+		Total
	Days		Days		Days		30+ days				Total
	Past Due		Past Due		Past Due		Past Due		Current		Loans
Commercial:
Commercial real estate	$	-		-		-		-		15,734		15,734
Other		-		-		-		-		99		99
Real estate mortgage - 1 to 4 family:
First mortgages		376		-		1,197		1,573		553,215		554,788
Home equity loans		-		-		-		-		7,871		7,871
Home equity lines of credit		59		94		88		241		47,857		48,098
Installment		13		6		-		19		1,245		1,264
Total	$	448		100		1,285		1,833		626,021		627,854

Total:

(dollars in thousands)		30-59		60-89		90+	Total
	Days		Days		Days		30+ days				Total
	Past Due		Past Due		Past Due		Past Due		Current		Loans
Commercial:
Commercial real estate	$	109		-		2,790		2,899		183,020		185,919
Other		-		-		-		-		22,875		22,875
Real estate mortgage - 1 to 4 family:
First mortgages		3,254		1,467		16,575		21,296		2,626,925		2,648,221
Home equity loans		103		-		149		252		59,471		59,723
Home equity lines of credit		330		319		1,541		2,190		354,147		356,337
Installment		126		26		37		189		8,741		8,930
Total	$	3,922		1,812		21,092		26,826		3,255,179		3,282,005

New York and other states:
	December 31, 2014
(dollars in thousands)		30-59		60-89		90	+	Total
	Days		Days		Days			30+ days				Total
	Past Due		Past Due		Past Due			Past Due		Current		Loans
Commercial:
Commercial real estate	$	618		52		2,627			3,297		171,491		174,788
Other		-		-		-			-		29,200		29,200
Real estate mortgage - 1 to 4 family:
First mortgages		3,340		3,874		16,782			23,996		2,017,144		2,041,140
Home equity loans		141		59		337			537		51,176		51,713
Home equity lines of credit		568		342		1,198			2,108		306,656		308,764
Installment		79		10		58			147		6,627		6,774
Total	$	4,746		4,337		21,002			30,085		2,582,294		2,612,379

Florida:

(dollars in thousands)		30-59		60-89		90	+	Total
	Days		Days		Days			30+ days				Total
	Past Due		Past Due		Past Due			Past Due		Current		Loans
Commercial:
Commercial real estate	$	-		-		-			-		19,336		19,336
Other		-		-		-			-		58		58
Real estate mortgage - 1 to 4 family:
First mortgages		801		283		1,225			2,309		474,118		476,427
Home equity loans		-		-		-			-		5,942		5,942
Home equity lines of credit		173		-		116			289		43,081		43,370
Installment		17		-		-			17		803		820
Total	$	991		283		1,341			2,615		543,338		545,953

Total:

(dollars in thousands)		30-59		60-89		90	+	Total
	Days		Days		Days			30+ days				Total
	Past Due		Past Due		Past Due			Past Due		Current		Loans
Commercial:
Commercial real estate	$	618		52		2,627			3,297		190,827		194,124
Other		-		-		-			-		29,258		29,258
Real estate mortgage - 1 to 4 family:
First mortgages		4,141		4,157		18,007			26,305		2,491,262		2,517,567
Home equity loans		141		59		337			537		57,118		57,655
Home equity lines of credit		741		342		1,314			2,397		349,737		352,134
Installment		96		10		58			164		7,430		7,594
Total	$	5,737		4,620		22,343			32,700		3,125,632		3,158,332

At September 30, 2015 and December 31, 2014, there were no loans that were 90 days past due and still accruing interest. As a result, non‐accrual loans includes all loans 90 days or more past due as well as certain loans less than 90 days past due that were placed on non‐accrual status for reasons other than delinquent status. There are no commitments to extend further credit on non‐accrual or restructured loans.

Activity in the allowance for loan losses by portfolio segment is summarized as follows:

(dollars in thousands)	For the three months ended September 30, 2015
	Commercial		Real Estate Mortgage- 1 to 4 Family		Installment		Total
Balance at beginning of period	$	4,022		41,087		462		45,571
Loans charged off:
New York and other states*		3		1,300		50		1,353
Florida		-		35		4		39
Total loan chargeoffs		3		1,335		54		1,392

Recoveries of loans previously charged off:
New York and other states*		-		141		24		165
Florida		3		2		-		5
Total recoveries		3		143		24		170
Net loans charged off		-		1,192		30		1,222
Provision for loan losses		34		752		14		800
Balance at end of period	$	4,056		40,647		446		45,149

(dollars in thousands)	For the three months ended September 30, 2014
	Commercial		Real Estate Mortgage- 1 to 4 Family		Installment		Total
Balance at beginning of period	$	4,073		42,752		110		46,935
Loans charged off:
New York and other states*		124		1,187		67		1,378
Florida		-		278		-		278
Total loan chargeoffs		124		1,465		67		1,656

Recoveries of loans previously charged off:
New York and other states*		-		82		10		92
Florida		1		36		4		41
Total recoveries		1		118		14		133
Net loans charged off		123		1,347		53		1,523
Provision for loan losses		95		935		70		1,100
Balance at end of period	$	4,045		42,340		127		46,512

(dollars in thousands)	For the nine months ended September 30, 2015
	Commercial		Real Estate Mortgage- 1 to 4 Family		Installment		Total
Balance at beginning of period	$	4,071		42,088		168		46,327
Loans charged off:
New York and other states*		103		3,480		126		3,709
Florida		-		313		4		317
Total loan chargeoffs		103		3,793		130		4,026

Recoveries of loans previously charged off:
New York and other states*		16		384		39		439
Florida		5		4		-		9
Total recoveries		21		388		39		448
Net loans charged off		82		3,405		91		3,578
Provision for loan losses		67		1,964		369		2,400
Balance at end of period	$	4,056		40,647		446		45,149

(dollars in thousands)	For the nine months ended September 30, 2014
	Commercial		Real Estate Mortgage- 1 to 4 Family		Installment		Total
Balance at beginning of period	$	4,019		43,597		98		47,714
Loans charged off:
New York and other states*		397		3,804		148		4,349
Florida		613		820		12		1,445
Total loan chargeoffs		1,010		4,624		160		5,794

Recoveries of loans previously charged off:
New York and other states*		18		352		23		393
Florida		4		91		4		99
Total recoveries		22		443		27		492
Net loans charged off		988		4,181		133		5,302
Provision for loan losses		1,014		2,924		162		4,100
Balance at end of period	$	4,045		42,340		127		46,512

The Company has identified non‐accrual commercial and commercial real estate loans, as well as all loans restructured under a troubled debt restructuring (“TDR”), as impaired loans. A loan is considered impaired when it is probable that the borrower will be unable to repay the loan according to the original contractual terms of the loan agreement or the loan is restructured as a TDR.

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2015 and December 31, 2014:

	September 30, 2015
(dollars in thousands)			1-to-4 Family
	Commercial Loans		Residential Real Estate		Installment Loans		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	-		-		-		-
Collectively evaluated for impairment		4,056		40,647		446		45,149

Total ending allowance balance	$	4,056		40,647		446		45,149


Loans:
Individually evaluated for impairment	$	3,984		23,136		-		27,120
Collectively evaluated for impairment		204,810		3,041,145		8,930		3,254,885

Total ending loans balance	$	208,794		3,064,281		8,930		3,282,005


	December 31, 2014
(dollars in thousands)			1-to-4 Family
	Commercial Loans		Residential Real Estate		Installment Loans		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	-		-		-		-
Collectively evaluated for impairment		4,071		42,088		168		46,327

Total ending allowance balance	$	4,071		42,088		168		46,327


Loans:
Individually evaluated for impairment	$	4,129		22,406		-		26,535
Collectively evaluated for impairment		219,253		2,904,950		7,594		3,131,797

Total ending loans balance	$	223,382		2,927,356		7,594		3,158,332

A loan for which the terms have been modified, and for which the borrower is experiencing financial difficulties, is considered a TDR and is classified as impaired. TDR’s at September 30, 2015 and December 31, 2014 are measured at the present value of estimated future cash flows using the loan’s effective rate at inception or the fair value of the underlying collateral if the loan is considered collateral dependent.

The following tables present impaired loans by loan class as of September 30, 2015 and December 31, 2014:

New York and other states:
	September 30, 2015
(dollars in thousands)			Unpaid				Average
	Recorded		Principal		Related		Recorded
	Investment		Balance		Allowance		Investment
Commercial:
Commercial real estate	$	3,984		4,162		-		3,612
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		18,130		19,069		-		19,708
Home equity loans		418		445		-		438
Home equity lines of credit		2,120		2,314		-		2,896
Total	$	24,652		25,990		-		26,654

Florida:

(dollars in thousands)			Unpaid				Average
	Recorded		Principal		Related		Recorded
	Investment		Balance		Allowance		Investment
Commercial:
Commercial real estate	$	-		-		-		-
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		1,772		1,864		-		1,397
Home equity loans		53		53		-		54
Home equity lines of credit		643		727		-		675
Total	$	2,468		2,644		-		2,126

Total:

(dollars in thousands)			Unpaid				Average
	Recorded		Principal		Related		Recorded
	Investment		Balance		Allowance		Investment
Commercial:
Commercial real estate	$	3,984		4,162		-		3,612
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		19,902		20,933		-		21,105
Home equity loans		471		498		-		492
Home equity lines of credit		2,763		3,041		-		3,571
Total	$	27,120		28,634		-		28,780

New York and other states:
	December 31, 2014
(dollars in thousands)			Unpaid				Average
	Recorded		Principal		Related		Recorded
	Investment		Balance		Allowance		Investment
Commercial:
Commercial real estate	$	4,129		5,499		-		4,798
Other		-		-		-		61
Real estate mortgage - 1 to 4 family:
First mortgages		17,579		18,689		-		17,261
Home equity loans		366		410		-		454
Home equity lines of credit		2,492		2,778		-		2,578
Total	$	24,566		27,376		-		25,152

Florida:

(dollars in thousands)			Unpaid				Average
	Recorded		Principal		Related		Recorded
	Investment		Balance		Allowance		Investment
Commercial:
Commercial real estate	$	-		-		-		577
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		1,289		1,380		-		1,422
Home equity loans		56		56		-		5
Home equity lines of credit		624		773		-		581
Total	$	1,969		2,209		-		2,585

Total:

(dollars in thousands)			Unpaid				Average
	Recorded		Principal		Related		Recorded
	Investment		Balance		Allowance		Investment
Commercial:
Commercial real estate	$	4,129		5,499		-		5,375
Other		-		-		-		61
Real estate mortgage - 1 to 4 family:
First mortgages		18,868		20,069		-		18,683
Home equity loans		422		466		-		459
Home equity lines of credit		3,116		3,551		-		3,159
Total	$	26,535		29,585		-		27,737

The Company has not committed to lend additional amounts to customers with outstanding loans that are classified as impaired. Interest income recognized on impaired loans was not material during the three and nine months ended September 30, 2015 and 2014.

As of September 30, 2015 and December 31, 2014 impaired loans included approximately $11.2 million and $9.9 million of 1 to 4 family residential real estate loans in accruing status that were identified as TDR’s in accordance with regulatory guidance related to Chapter 7 bankruptcy loans.

Management evaluates impairment on impaired loans on a quarterly basis. If, during this evaluation, impairment of the loan is identified, a charge off is taken at that time. As a result, as of September 30, 2015 and December 31, 2014, based upon management’s evaluation and due to the sufficiency of chargeoffs taken, none of the allowance for loan losses has been allocated to a specific impaired loan(s).

The following table presents, by class, loans that were modified as TDR’s:

	Three months ended 9/30/2015						Three months ended 9/30/2014
New York and other states*:			Pre-Modification		Post-Modification				Pre-Modification		Post-Modification
(dollars in thousands)	Number of Contracts		Outstanding Recorded Investment		Outstanding Recorded Investment		Number of Contracts		Outstanding Recorded Investment		Outstanding Recorded Investment
Real estate mortgage - 1 to 4 family:
First mortgages		8		1,055		1,055		13		1,830		1,830
Home equity loans		-		-		-		2		12		12
Home equity lines of credit		3		115		115		-		-		-
Total		11	$	1,170	$	1,170		15	$	1,842	$	1,842

Florida:			Pre-Modification		Post-Modification				Pre-Modification		Post-Modification
(dollars in thousands)	Number of Contracts		Outstanding Recorded Investment		Outstanding Recorded Investment		Number of Contracts		Outstanding Recorded Investment		Outstanding Recorded Investment
Real estate mortgage - 1 to 4 family:
First mortgages		4	$	524	$	524		1	$	60	$	60
Home equity lines of credit		2		57		57		1		14		14
Total		6	$	581	$	581		2	$	74	$	74

	Nine months ended 9/30/2015						Nine months ended 9/30/2014
New York and other states*:			Pre-Modification		Post-Modification				Pre-Modification		Post-Modification
(dollars in thousands)	Number of Contracts		Outstanding Recorded Investment		Outstanding Recorded Investment		Number of Contracts		Outstanding Recorded Investment		Outstanding Recorded Investment
Commercial:
Commercial real estate		-	$	-	$	-		1	$	300	$	300
Real estate mortgage - 1 to 4 family:
First mortgages		28		4,042		4,042		31		4,523		4,523
Home equity loans		1		139		139		4		63		63
Home equity lines of credit		5		159		159		3		565		565
Total		34	$	4,340	$	4,340		39	$	5,451	$	5,451


Florida:			Pre-Modification		Post-Modification				Pre-Modification		Post-Modification
(dollars in thousands)	Number of Contracts		Outstanding Recorded Investment		Outstanding Recorded Investment		Number of Contracts		Outstanding Recorded Investment		Outstanding Recorded Investment
Real estate mortgage - 1 to 4 family:
First mortgages		5	$	681	$	681		5	$	423	$	423
Home equity lines of credit		4		107		107		3		368		368
Total		9	$	788	$	788		8	$	791	$	791

The addition of these TDR’s did not have a significant impact on the allowance for loan losses.

In situations where the Bank considers a loan modification, management determines whether the borrower is experiencing financial difficulty by performing an evaluation of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s underwriting policy.

Generally, the modification of the terms of loans was the result of the borrower filing for bankruptcy protection. Chapter 13 bankruptcies generally include the deferral of all past due amounts for a period of generally 60 months in accordance with the bankruptcy court order. In the case of Chapter 7 bankruptcies, as previously noted, even though there is no modification of terms, the borrowers’ debt to the Company was discharged and they did not reaffirm the debt.

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. In situations involving a borrower filing for Chapter 13 bankruptcy protection, however, a loan is considered to be in payment default once it is 30 days contractually past due, consistent with the treatment by the bankruptcy court.

The following table presents, by class, TDR’s that defaulted during the three and nine months ended September 30, 2015 and 2014 which had been modified within the last twelve months:

	Three months ended 9/30/2015				Three months ended 9/30/2014
New York and other states*:	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
(dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment

Real estate mortgage - 1 to 4 family:
First mortgages		1	$	121		2	$	203

Total		1	$	121		2	$	203

Florida:
	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
(dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment

Real estate mortgage - 1 to 4 family:
First mortgages		-	$	-		1	$	60

Total		-	$	-		1	$	60

	Nine months ended 9/30/2015				Nine months ended 9/30/2014
New York and other states*:	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
(dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment

Real estate mortgage - 1 to 4 family:
First mortgages		1	$	121		6	$	509

Total		1	$	121		6	$	509

Florida:
	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
(dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment

Real estate mortgage - 1 to 4 family:
First mortgages		-	$	-		1	$	60
Home equity lines of credit		1	$	50		1	$	279

Total		1	$	50		2	$	339

The TDR’s that subsequently defaulted described above did not have a material impact on the allowance for loan losses.

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. On at least an annual basis, the Company’s loan grading process analyzes non‐homogeneous loans, such as commercial and commercial real estate loans, individually by grading the loans based on credit risk. Homogeneous loans, such as residential 1‐to‐4 family loans and installment loans, are also assigned loan grades based primarily on the delinquent status of the loan. The loan grades assigned to all loan types are tested by the Company’s internal loan review department in accordance with the Company’s internal loan review policy.

The Company uses the following definitions for classified loans:

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as such 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: Loans classified as doubtful have all the weaknesses inherent in those loans classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. All doubtful loans are considered impaired.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be “satisfactory” or “pass” rated loans.

As of September 30, 2015 and December 31, 2014, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

	September 30, 2015
New York and other states:

(dollars in thousands)
	Pass		Classified		Total
Commercial:
Commercial real estate	$	155,836		14,349		170,185
Other		22,036		740		22,776
	$	177,872		15,089		192,961
Florida:

(dollars in thousands)
	Pass		Classified		Total
Commercial:
Commercial real estate	$	15,734		-		15,734
Other		99		-		99
	$	15,833		-		15,833
Total:

(dollars in thousands)
	Pass		Classified		Total
Commercial:
Commercial real estate	$	171,570		14,349		185,919
Other		22,135		740		22,875
	$	193,705		15,089		208,794

	December 31, 2014
New York and other states:

(dollars in thousands)
	Pass		Classified		Total
Commercial:
Commercial real estate	$	162,589		12,199		174,788
Other		28,677		523		29,200
	$	191,266		12,722		203,988
Florida:

(dollars in thousands)
	Pass		Classified		Total
Commercial:
Commercial real estate	$	19,336		-		19,336
Other		58		-		58
	$	19,394		-		19,394
Total:

(dollars in thousands)
	Pass		Classified		Total
Commercial:
Commercial real estate	$	181,925		12,199		194,124
Other		28,735		523		29,258
	$	210,660		12,722		223,382

Included in classified loans in the above tables are impaired loans of $3.7 million and $4.1 million at September 30, 2015 and December 31, 2014, respectively.

For homogeneous loan pools, such as residential mortgages, home equity lines of credit, and installment loans, the Company uses payment status to identify the credit risk in these loan portfolios. Payment status is reviewed on a daily basis by the Bank’s collection area and on a monthly basis with respect to determining the adequacy of the allowance for loan losses. The payment status of these homogeneous pools as of September 30, 2015 and December 31, 2014 is included in the aging of the recorded investment of past due loans table. In addition, the total nonperforming portion of these homogeneous loan pools as of September 30, 2015 and December 31, 2014 is presented in the non‐accrual loans table.