(5) Loans and Allowance for Loan Losses

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

	September 30, 2018
(dollars in thousands)	New York and other states*		Florida		Total

Commercial:
Commercial real estate	$	154,206		12,281		166,487
Other		24,246		254		24,500
Real estate mortgage - 1 to 4 family:
First mortgages		2,408,946		835,265		3,244,211
Home equity loans		70,914		16,087		87,001
Home equity lines of credit		248,274		45,476		293,750
Installment		7,810		2,157		9,967
Total loans, net	$	2,914,396		911,520		3,825,916
Less: Allowance for loan losses						44,736
Net loans					$	3,781,180

	December 31, 2017
(dollars in thousands)	New York and other states*		Florida		Total

Commercial:
Commercial real estate	$	149,368		12,524		161,892
Other		23,606		709		24,315
Real estate mortgage - 1 to 4 family:
First mortgages		2,286,148		765,929		3,052,077
Home equity loans		66,455		13,989		80,444
Home equity lines of credit		263,275		45,641		308,916
Installment		7,141		1,622		8,763
Total loans, net	$	2,795,993		840,414		3,636,407
Less: Allowance for loan losses						44,170
Net loans					$	3,592,237

* Includes New York, New Jersey, Vermont and Massachusetts.

At September 30, 2018 and December 31, 2017, the Company had approximately $25.4 million and $30.9 million of real estate construction loans, respectively. Of the $25.4 million in real estate construction loans at September 30, 2018, approximately $14.0 million are secured by first mortgages to residential borrowers while approximately $11.4 million were to commercial borrowers for residential construction projects. Of the $30.9 million in real estate construction loans at December 31, 2017, approximately $21.1 million are secured by first mortgages to residential borrowers while approximately $9.8 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 tables present the recorded investment in non‑accrual loans by loan class:

	September 30, 2018
(dollars in thousands)	New York and other states*		Florida		Total

Loans in non-accrual status:
Commercial:
Commercial real estate	$	647		-		647
Other		281		-		281
Real estate mortgage - 1 to 4 family:
First mortgages		17,036		1,949		18,985
Home equity loans		199		-		199
Home equity lines of credit		3,515		105		3,620
Installment		13		13		26
Total non-accrual loans		21,691		2,067		23,758
Restructured real estate mortgages - 1 to 4 family		35		-		35
Total nonperforming loans	$	21,726		2,067		23,793

	December 31, 2017
(dollars in thousands)	New York and other states*		Florida		Total

Loans in non-accrual status:
Commercial:
Commercial real estate	$	1,443		-		1,443
Other		100		-		100
Real estate mortgage - 1 to 4 family:
First mortgages		16,654		2,259		18,913
Home equity loans		93		-		93
Home equity lines of credit		3,603		130		3,733
Installment		57		-		57
Total non-accrual loans		21,950		2,389		24,339
Restructured real estate mortgages - 1 to 4 family		38		-		38
Total nonperforming loans	$	21,988		2,389		24,377

* Includes New York, New Jersey, Vermont and Massachusetts.

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, 2018 and December 31, 2017, other real estate owned included $1.7 million and $2.7 million of residential foreclosed properties, respectively. In addition, non‑accrual residential mortgage loans that are in the process of foreclosure had a recorded investment of $12.5 million and $12.6 million as of September 30, 2018 and December 31, 2017, 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, 2018 and December 31, 2017:

	September 30, 2018

New York and other states*:		30-59		60-89		90+	Total
	Days		Days		Days		30+ days				Total
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans

Commercial:
Commercial real estate	$	-		111		435		546		153,660		154,206
Other		-		-		274		274		23,972		24,246
Real estate mortgage - 1 to 4 family:
First mortgages		3,177		1,596		12,008		16,781		2,392,165		2,408,946
Home equity loans		17		-		163		180		70,734		70,914
Home equity lines of credit		569		141		1,904		2,614		245,660		248,274
Installment		45		26		10		81		7,729		7,810

Total	$	3,808		1,874		14,794		20,476		2,893,920		2,914,396



Florida:		30-59		60-89		90+	Total
	Days		Days		Days		30+ days				Total
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans

Commercial:
Commercial real estate	$	-		-		-		-		12,281		12,281
Other		-		-		-		-		254		254
Real estate mortgage - 1 to 4 family:
First mortgages		532		179		1,047		1,758		833,507		835,265
Home equity loans		51		-		-		51		16,036		16,087
Home equity lines of credit		29		-		50		79		45,397		45,476
Installment		2		5		13		20		2,137		2,157

Total	$	614		184		1,110		1,908		909,612		911,520



Total:		30-59		60-89		90+	Total
	Days		Days		Days		30+ days				Total
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans

Commercial:
Commercial real estate	$	-		111		435		546		165,941		166,487
Other		-		-		274		274		24,226		24,500
Real estate mortgage - 1 to 4 family:
First mortgages		3,709		1,775		13,055		18,539		3,225,672		3,244,211
Home equity loans		68		-		163		231		86,770		87,001
Home equity lines of credit		598		141		1,954		2,693		291,057		293,750
Installment		47		31		23		101		9,866		9,967

Total	$	4,422		2,058		15,904		22,384		3,803,532		3,825,916

* Includes New York, New Jersey, Vermont and Massachusetts.

	December 31, 2017

New York and other states*:		30-59		60-89		90+	Total
	Days		Days		Days		30+ days				Total
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans

Commercial:
Commercial real estate	$	183		174		1,332		1,689		147,679		149,368
Other		-		-		100		100		23,506		23,606
Real estate mortgage - 1 to 4 family:
First mortgages		5,669		1,300		9,014		15,983		2,270,165		2,286,148
Home equity loans		6		-		45		51		66,404		66,455
Home equity lines of credit		489		18		2,139		2,646		260,629		263,275
Installment		46		17		25		88		7,053		7,141

Total	$	6,393		1,509		12,655		20,557		2,775,436		2,795,993



Florida:		30-59		60-89		90+	Total
	Days		Days		Days		30+ days				Total
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans

Commercial:
Commercial real estate	$	-		-		-		-		12,524		12,524
Other		-		-		-		-		709		709
Real estate mortgage - 1 to 4 family:
First mortgages		277		-		1,404		1,681		764,248		765,929
Home equity loans		-		-		-		-		13,989		13,989
Home equity lines of credit		-		-		-		-		45,641		45,641
Installment		3		5		26		34		1,588		1,622

Total	$	280		5		1,430		1,715		838,699		840,414



Total:		30-59		60-89		90+	Total
	Days		Days		Days		30+ days				Total
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans

Commercial:
Commercial real estate	$	183		174		1,332		1,689		160,203		161,892
Other		-		-		100		100		24,215		24,315
Real estate mortgage - 1 to 4 family:
First mortgages		5,946		1,300		10,418		17,664		3,034,413		3,052,077
Home equity loans		6		-		45		51		80,393		80,444
Home equity lines of credit		489		18		2,139		2,646		306,270		308,916
Installment		49		22		51		122		8,641		8,763

Total	$	6,673		1,514		14,085		22,272		3,614,135		3,636,407

* Includes New York, New Jersey, Vermont and Massachusetts.

At September 30, 2018 and December 31, 2017, there were no loans that were 90 days past due and still accruing interest. As a result, non‑accrual loans include 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:

	Three months ended September 30, 2018
(dollars in thousands)	Commercial			Real Estate Mortgage- 1 to 4 Family			Installment		Total

Balance at beginning of period	$	4,195			39,471			837		44,503
Loans charged off:
New York and other states*		-			94			69		163
Florida		-			-			9		9
Total loan chargeoffs		-			94			78		172

Recoveries of loans previously charged off:
New York and other states*		2			97			5		104
Florida		-			-			1		1
Total recoveries		2			97			6		105
Net loans charged off (recoveries)		(2	)		(3	)		72		67
Provision (recoveries) for loan losses		(65	)		227			138		300
Balance at end of period	$	4,132			39,701			903		44,736

	Three months ended September 30, 2017
(dollars in thousands)	Commercial		Real Estate Mortgage- 1 to 4 Family		Installment		Total

Balance at beginning of period	$	4,596		38,871		695		44,162
Loans charged off:
New York and other states*		-		747		65		812
Florida		-		31		4		35
Total loan chargeoffs		-		778		69		847

Recoveries of loans previously charged off:
New York and other states*		-		137		8		145
Florida		-		72		-		72
Total recoveries		-		209		8		217
Net loans charged off (recoveries)		-		569		61		630
Provision (recoveries) for loan losses		24		434		92		550
Balance at end of period	$	4,620		38,736		726		44,082

* Includes New York, New Jersey, Vermont and Massachusetts.

	Nine months ended September 30, 2018
(dollars in thousands)	Commercial			Real Estate Mortgage- 1 to 4 Family		Installment		Total

Balance at beginning of period	$	4,324			39,077		769		44,170
Loans charged off:
New York and other states*		-			464		181		645
Florida		-			-		15		15
Total loan chargeoffs		-			464		196		660

Recoveries of loans previously charged off:
New York and other states*		9			289		24		322
Florida		-			-		4		4
Total recoveries		9			289		28		326
Net loans charged off (recoveries)		(9	)		175		168		334
Provision (recoveries) for loan losses		(201	)		799		302		900
Balance at end of period	$	4,132			39,701		903		44,736

	Nine months ended September 30, 2017
(dollars in thousands)	Commercial			Real Estate Mortgage- 1 to 4 Family		Installment		Total

Balance at beginning of period	$	4,929			38,231		730		43,890
Loans charged off:
New York and other states*		72			1,699		146		1,917
Florida		-			167		19		186
Total loan chargeoffs		72			1,866		165		2,103

Recoveries of loans previously charged off:
New York and other states*		8			494		21		523
Florida		-			72		-		72
Total recoveries		8			566		21		595
Net loans charged off		64			1,300		144		1,508
Provision (recoveries) for loan losses		(245	)		1,805		140		1,700
Balance at end of period	$	4,620			38,736		726		44,082

* Includes New York, New Jersey, Vermont and Massachusetts.

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, 2018 and December 31, 2017:

	September 30, 2018
(dollars in thousands)	Commercial Loans		1-to-4 Family Residential Real Estate		Installment Loans		Total

Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	-		-		-		-
Collectively evaluated for impairment		4,132		39,701		903		44,736

Total ending allowance balance	$	4,132		39,701		903		44,736


Loans:
Individually evaluated for impairment	$	1,961		20,576		-		22,537
Collectively evaluated for impairment		189,026		3,604,386		9,967		3,803,379

Total ending loans balance	$	190,987		3,624,962		9,967		3,825,916

	December 31, 2017
(dollars in thousands)	Commercial Loans		1-to-4 Family Residential Real Estate		Installment Loans		Total

Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	-		-		-		-
Collectively evaluated for impairment		4,324		39,077		769		44,170

Total ending allowance balance	$	4,324		39,077		769		44,170


Loans:
Individually evaluated for impairment	$	2,248		22,032		-		24,280
Collectively evaluated for impairment		183,959		3,419,405		8,763		3,612,127

Total ending loans balance	$	186,207		3,441,437		8,763		3,636,407

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, 2018 and December 31, 2017 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, 2018 and December 31, 2017:

	September 30, 2018

New York and other states*:			Unpaid				Average
	Recorded		Principal		Related		Recorded
(dollars in thousands)	Investment		Balance		Allowance		Investment

Commercial:
Commercial real estate	$	1,534		1,704		-		1,597
Other		313		313		-		191
Real estate mortgage - 1 to 4 family:		-		-		-		-
First mortgages		14,906		20,283		-		15,418
Home equity loans		257		471		-		262
Home equity lines of credit		2,700		4,082		-		2,691

Total	$	19,710		26,853		-		20,159



Florida:			Unpaid				Average
	Recorded		Principal		Related		Recorded
(dollars in thousands)	Investment		Balance		Allowance		Investment

Commercial:
Commercial real estate	$	114		114		-		29
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		2,374		2,731		-		2,559
Home equity loans		85		95		-		87
Home equity lines of credit		254		1,056		-		390

Total	$	2,827		3,996		-		3,065



Total:			Unpaid				Average
	Recorded		Principal		Related		Recorded
(dollars in thousands)	Investment		Balance		Allowance		Investment

Commercial:
Commercial real estate	$	1,648		1,818		-		1,626
Other		313		313		-		191
Real estate mortgage - 1 to 4 family:
First mortgages		17,280		23,014		-		17,977
Home equity loans		342		566		-		349
Home equity lines of credit		2,954		5,138		-		3,081

Total	$	22,537		30,849		-		23,224

* Includes New York, New Jersey, Vermont and Massachusetts.

	December 31, 2017

New York and other states*:			Unpaid				Average
	Recorded		Principal		Related		Recorded
(dollars in thousands)	Investment		Balance		Allowance		Investment

Commercial:
Commercial real estate	$	2,148		3,120		-		2,711
Other		100		100		-		87
Real estate mortgage - 1 to 4 family:
First mortgages		15,850		16,540		-		16,508
Home equity loans		270		291		-		263
Home equity lines of credit		2,606		2,847		-		2,193

Total	$	20,974		22,898		-		21,762



Florida:			Unpaid				Average
	Recorded		Principal		Related		Recorded
(dollars in thousands)	Investment		Balance		Allowance		Investment

Commercial:
Commercial real estate	$	-		-		-		-
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		2,707		2,813		-		2,335
Home equity loans		89		89		-		92
Home equity lines of credit		510		510		-		561

Total	$	3,306		3,412		-		2,988



Total:			Unpaid				Average
	Recorded		Principal		Related		Recorded
(dollars in thousands)	Investment		Balance		Allowance		Investment

Commercial:
Commercial real estate	$	2,148		3,120		-		2,711
Other		100		100		-		87
Real estate mortgage - 1 to 4 family:
First mortgages		18,557		19,353		-		18,843
Home equity loans		359		380		-		355
Home equity lines of credit		3,116		3,357		-		2,754

Total	$	24,280		26,310		-		24,750

* Includes New York, New Jersey, Vermont and Massachusetts.

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, 2018 and 2017.

As of September 30, 2018 and December 31, 2017 impaired loans included approximately $11.3 million and $11.8 million of loans in accruing status that were identified as TDR’s in accordance with regulatory guidance related to Chapter 7 bankruptcy loans, respectively.

Management evaluates impairment on impaired loans on a quarterly basis. If, during this evaluation, impairment of the loan is identified, a chargeoff is taken at that time. As a result, as of September 30, 2018 and December 31, 2017, 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 tables presents, by class, loans that were modified as TDR’s:

	Three months ended 9/30/2018						Three months ended 9/30/2017

New York and other states*:			Pre-Modification		Post-Modification				Pre-Modification		Post-Modification
			Outstanding		Outstanding				Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Recorded
(dollars in thousands)	Contracts		Investment		Investment		Contracts		Investment		Investment

Commercial:
Commercial real estate		-	$	-		-		-	$	-		-
Real estate mortgage - 1 to 4 family:
First mortgages		6		791		791		7		941		941
Home equity loans		1		6		6		-		-		-
Home equity lines of credit		1		7		7		3		296		296

Total		8	$	804		804		10	$	1,237		1,237


Florida:			Pre-Modification		Post-Modification				Pre-Modification		Post-Modification
			Outstanding		Outstanding				Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Recorded
(dollars in thousands)	Contracts		Investment		Investment		Contracts		Investment		Investment

Commercial:
Commercial real estate		-	$	-		-		-	$	-		-
Real estate mortgage - 1 to 4 family:
First mortgages		-		-		-		2		251		251
Home equity loans		-		-		-		-		-		-
Home equity lines of credit		-		-		-		-		-		-

Total		-	$	-		-		2	$	251		251


	Nine months ended 9/30/2018						Nine months ended 9/30/2017

New York and other states*:			Pre-Modification		Post-Modification				Pre-Modification		Post-Modification
			Outstanding		Outstanding				Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Recorded
(dollars in thousands)	Contracts		Investment		Investment		Contracts		Investment		Investment

Commercial:
Commercial real estate		-	$	-		-		3	$	747		747
Real estate mortgage - 1 to 4 family:
First mortgages		10		1,386		1,386		25		3,986		3,986
Home equity loans		1		6		6		1		13		13
Home equity lines of credit		3		216		216		8		457		457

Total		14	$	1,608		1,608		37	$	5,203		5,203


Florida:			Pre-Modification		Post-Modification				Pre-Modification		Post-Modification
			Outstanding		Outstanding				Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Recorded
(dollars in thousands)	Contracts		Investment		Investment		Contracts		Investment		Investment

Commercial:
Commercial real estate		-	$	-		-		-	$	-		-
Real estate mortgage - 1 to 4 family:
First mortgages		-		-		-		7		718		718
Home equity loans		-		-		-		-		-		-
Home equity lines of credit		-		-		-		1		70		70

Total		-	$	-		-		8	$	788		788

* Includes New York, New Jersey, Vermont and Massachusetts.

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

In situations where the Company 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, 2018 and 2017 which had been modified within the last twelve months:

	Three months ended 9/30/2018				Three months ended 9/30/2017

New York and other states*:	Number of		Recorded		Number of		Recorded
(dollars in thousands)	Contracts		Investment		Contracts		Investment

Commercial:
Commercial real estate		-	$	-		-	$	-
Real estate mortgage - 1 to 4 family:
First mortgages		1		101		2		236
Home equity loans		-		-		-		-
Home equity lines of credit		-		-		-		-

Total		1	$	101		2	$	236


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

Commercial:
Commercial real estate		-	$	-		-	$	-
Real estate mortgage - 1 to 4 family:
First mortgages		-		-		-		-
Home equity loans		-		-		-		-
Home equity lines of credit		-		-		-		-

Total		-	$	-		-	$	-


	Nine months ended 9/30/2018				Nine months ended 9/30/2017

New York and other states*:	Number of		Recorded		Number of		Recorded
(dollars in thousands)	Contracts		Investment		Contracts		Investment

Commercial:
Commercial real estate		-	$	-		-	$	-
Real estate mortgage - 1 to 4 family:
First mortgages		1		101		2		236
Home equity loans		-		-		-		-
Home equity lines of credit		1		3		1		3

Total		2	$	104		3	$	239


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

Commercial:
Commercial real estate		-	$	-		-	$	-
Real estate mortgage - 1 to 4 family:
First mortgages		1		72		1		77
Home equity loans		-		-		-		-
Home equity lines of credit		-		-		1		70

Total		1	$	72		2	$	147

* Includes New York, New Jersey, Vermont and Massachusetts.

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

The Company categorizes non‑homogenous 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. 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 “pass” rated loans.

As of September 30, 2018 and December 31, 2017, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

	September 30, 2018

New York and other states*:
(dollars in thousands)	Pass		Classified		Total

Commercial:
Commercial real estate	$	149,030		5,176		154,206
Other		23,061		1,185		24,246

	$	172,091		6,361		178,452


Florida:
(dollars in thousands)	Pass		Classified		Total

Commercial:
Commercial real estate	$	12,167		114		12,281
Other		254		-		254

	$	12,421		114		12,535


Total:
(dollars in thousands)	Pass		Classified		Total

Commercial:
Commercial real estate	$	161,197		5,290		166,487
Other		23,315		1,185		24,500

	$	184,512		6,475		190,987

* Includes New York, New Jersey and Massachusetts.

	December 31, 2017

New York and other states*:
(dollars in thousands)	Pass		Classified		Total

Commercial:
Commercial real estate	$	140,806		8,562		149,368
Other		21,936		1,670		23,606

	$	162,742		10,232		172,974


Florida:
(dollars in thousands)	Pass		Classified		Total

Commercial:
Commercial real estate	$	12,406		118		12,524
Other		709		-		709

	$	13,115		118		13,233


Total:
(dollars in thousands)	Pass		Classified		Total

Commercial:
Commercial real estate	$	153,212		8,680		161,892
Other		22,645		1,670		24,315

	$	175,857		10,350		186,207

* Includes New York, New Jersey and Massachusetts.

Included in classified loans in the above tables are impaired loans of $2.0 million and $1.5 million at September 30, 2018 and December 31, 2017, 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 Company’s collection department 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, 2018 and December 31, 2017 is included in the aging of the recorded investment of the past due loans table. In addition, the total nonperforming portion of these homogeneous loan pools as of September 30, 2018 and December 31, 2017 is presented in the non‑accrual loans table.