Loans and Allowance for Loan Losses

6 Months Ended

Jun. 30, 2019

Loans and Allowance for Loan Losses [Abstract]

Loans and Allowance for Loan Losses

(5) Loans and Allowance for Loan Losses

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

	June 30, 2019
(dollars in thousands)	New York and other states*		Florida		Total
Commercial:
Commercial real estate	$	153,550		14,404		167,954
Other		22,280		273		22,553
Real estate mortgage - 1 to 4 family:
First mortgages		2,461,857		876,259		3,338,116
Home equity loans		71,758		18,955		90,713
Home equity lines of credit		233,360		44,199		277,559
Installment		7,588		1,926		9,514
Total loans, net	$	2,950,393	$	956,016		3,906,409
Less: Allowance for loan losses						44,365
Net loans					$	3,862,044

	December 31, 2018
(dollars in thousands)	New York and other states*		Florida		Total
Commercial:
Commercial real estate	$	156,278		15,275		171,553
Other		24,330		263		24,593
Real estate mortgage - 1 to 4 family:
First mortgages		2,442,711		845,166		3,287,877
Home equity loans		71,523		17,308		88,831
Home equity lines of credit		243,765		45,775		289,540
Installment		9,462		2,240		11,702
Total loans, net	$	2,948,069		926,027		3,874,096
Less: Allowance for loan losses						44,766
Net loans					$	3,829,330

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

At June 30, 2019 and December 31, 2018, the Company had approximately $27.7 million and $26.7 million of real estate construction loans, respectively.  Of the $27.7 million in real estate construction loans at June 30, 2019, approximately $13.3 million are secured by second mortgages to residential borrowers while approximately $14.4 million were to commercial borrowers for residential construction projects.  Of the $26.7 million in real estate construction loans at December 31, 2018, approximately $14.2 million are secured by second mortgages to residential borrowers while approximately $12.5 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:

	June 30, 2019
(dollars in thousands)	New York and other states*		Florida		Total
Loans in non-accrual status:
Commercial:
Commercial real estate	$	902		-		902
Other		3		-		3
Real estate mortgage - 1 to 4 family:
First mortgages		15,818		1,433		17,251
Home equity loans		342		-		342
Home equity lines of credit		3,473		131		3,604
Installment		1		-		1
Total non-accrual loans		20,539		1,564		22,103
Restructured real estate mortgages - 1 to 4 family		31		-		31
Total nonperforming loans	$	20,570		1,564		22,134

	December 31, 2018
(dollars in thousands)	New York and other states*		Florida		Total
Loans in non-accrual status:
Commercial:
Commercial real estate	$	639		-		639
Other		6		-		6
Real estate mortgage - 1 to 4 family:
First mortgages		18,202		1,812		20,014
Home equity loans		247		-		247
Home equity lines of credit		3,924		103		4,027
Installment		4		15		19
Total non-accrual loans		23,022		1,930		24,952
Restructured real estate mortgages - 1 to 4 family		34		-		34
Total nonperforming loans	$	23,056		1,930		24,986

* 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 June 30, 2019 and December 31, 2018, other estate owned included $2.1 million and $1.1 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 $9.6 million and $12.4 million as of June 30, 2019 and December 31, 2018, respectively.

The following tables present the aging of the recorded investment in past due loans by loan class and by region as of June 30, 2019 and December 31, 2018:

	June 30, 2019
New York and other states*:
(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	478		-		-		478		153,072		153,550
Other		-		-		-		-		22,280		22,280
Real estate mortgage - 1 to 4 family:
First mortgages		2,746		932		11,363		15,041		2,446,816		2,461,857
Home equity loans		59		-		289		348		71,410		71,758
Home equity lines of credit		464		28		1,700		2,192		231,168		233,360
Installment		57		9		1		67		7,521		7,588
Total	$	3,804		969		13,353		18,126		2,932,267		2,950,393

Florida:
(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	-		-		-		-		14,404		14,404
Other		-		-		-		-		273		273
Real estate mortgage - 1 to 4 family:
First mortgages		555		822		623		2,000		874,259		876,259
Home equity loans		-		50		-		50		18,905		18,955
Home equity lines of credit		141		-		80		221		43,978		44,199
Installment		-		16		-		16		1,910		1,926
Total	$	696		888		703		2,287		953,729		956,016

Total:
(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	478		-		-		478		167,476		167,954
Other		-		-		-		-		22,553		22,553
Real estate mortgage - 1 to 4 family:
First mortgages		3,301		1,754		11,986		17,041		3,321,075		3,338,116
Home equity loans		59		50		289		398		90,315		90,713
Home equity lines of credit		605		28		1,780		2,413		275,146		277,559
Installment		57		25		1		83		9,431		9,514
Total	$	4,500		1,857		14,056		20,413		3,885,996		3,906,409

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

	December 31, 2018
New York and other states*:
(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	198		-		370		568		155,710		156,278
Other		-		-		-		-		24,330		24,330
Real estate mortgage - 1 to 4 family:
First mortgages		3,276		898		13,267		17,441		2,425,270		2,442,711
Home equity loans		158		94		212		464		71,059		71,523
Home equity lines of credit		963		348		1,691		3,002		240,763		243,765
Installment		44		29		2		75		9,387		9,462
Total	$	4,639		1,369		15,542		21,550		2,926,519		2,948,069

Florida:
(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	-		-		-		-		15,275		15,275
Other		-		-		-		-		263		263
Real estate mortgage - 1 to 4 family:
First mortgages		417		407		721		1,545		843,621		845,166
Home equity loans		50		-		-		50		17,258		17,308
Home equity lines of credit		40		-		50		90		45,685		45,775
Installment		12		7		15		34		2,206		2,240
Total	$	519		414		786		1,719		924,308		926,027

Total:
(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	198		-		370		568		170,985		171,553
Other		-		-		-		-		24,593		24,593
Real estate mortgage - 1 to 4 family:
First mortgages		3,693		1,305		13,988		18,986		3,268,891		3,287,877
Home equity loans		208		94		212		514		88,317		88,831
Home equity lines of credit		1,003		348		1,741		3,092		286,448		289,540
Installment		56		36		17		109		11,593		11,702
Total	$	5,158		1,783		16,328		23,269		3,850,827		3,874,096

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

At June 30, 2019 and December 31, 2018, 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:

	For the three months ended June 30, 2019
(dollars in thousands)	Commercial			Real Estate Mortgage- 1 to 4 Family			Installment			Total
Balance at beginning of period	$	3,734			39,985			952			44,671
Loans charged off:
New York and other states*		-			205			49			254
Florida		-			-			-			-
Total loan chargeoffs		-			205			49			254
Recoveries of loans previously charged off:
New York and other states*		1			259			4			264
Florida		-			25			-			25
Total recoveries		1			284			4			289
Net loans (recoveries) charged off		(1	)		(79	)		45			(35	)
(Credit) provision for loan losses		178			(101	)		(418	)		(341	)
Balance at end of period	$	3,913			39,963			489			44,365

	For the three months ended June 30, 2018
(dollars in thousands)	Commercial			Real Estate Mortgage- 1 to 4 Family		Installment		Total
Balance at beginning of period	$	4,255			39,359		765		44,379
Loans charged off:
New York and other states*		-			239		41		280
Florida		-			-		3		3
Total loan chargeoffs		-			239		44		283
Recoveries of loans previously charged off:
New York and other states*		1			89		14		104
Florida		-			-		3		3
Total recoveries		1			89		17		107
Net loans (recoveries) charged off		(1	)		150		27		176
Provision for loan losses		(61	)		262		99		300
Balance at end of period	$	4,195			39,471		837		44,503

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

	Six months ended June 30, 2019
	Commercial			Real Estate Mortgage- 1 to 4 Family		Installment			Total
Balance at beginning of period	$	4,048			39,772		946			44,766
Loans charged off:
New York and other states*		7			597		78			682
Florida		-			29		31			60
Total loan chargeoffs		7			626		109			742
Recoveries of loans previously charged off:
New York and other states*		4			333		10			347
Florida		-			35		-			35
Total recoveries		4			368		10			382
Net loans charged off		3			258		99			360
(Credit) provision for loan losses		(132	)		449		(358	)		(41	)
Balance at end of period	$	3,913			39,963		489			44,365

	Six months ended June 30, 2018
	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*		-			370		112		482
Florida		-			-		6		6
Total loan chargeoffs		-			370		118		488
Recoveries of loans previously charged off:
New York and other states*		7			192		19		218
Florida		-			-		3		3
Total recoveries		7			192		22		221
Net loans (recoveries) charged off		(7	)		178		96		267
Provision (recoveries) for loan losses		(136	)		572		164		600
Balance at end of period	$	4,195			39,471		837		44,503

* 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 June 30, 2019 and December 31, 2018:

	June 30, 2019
(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		3,913		39,963		489		44,365
Total ending allowance balance	$	3,913		39,963		489		44,365
Loans:
Individually evaluated for impairment	$	1,696		19,084		-		20,780
Collectively evaluated for impairment		188,811		3,687,304		9,514		3,885,629
Total ending loans balance	$	190,507		3,706,388		9,514		3,906,409

	December 31, 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		4,048		39,772		946		44,766
Total ending allowance balance	$	4,048		39,772		946		44,766
Loans:
Individually evaluated for impairment	$	1,424		20,864		-		22,288
Collectively evaluated for impairment		194,722		3,645,384		11,702		3,851,808
Total ending loans balance	$	196,146		3,666,248		11,702		3,874,096

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 June 30, 2019 and December 31, 2018 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 June 30, 2019 and December 31, 2018:

	June 30, 2019
New York and other states*:
(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Commercial:
Commercial real estate	$	1,552		1,722		-		1,419
Other		35		35		-		106
Real estate mortgage - 1 to 4 family:
First mortgages		14,100		14,393		-		14,784
Home equity loans		243		263		-		250
Home equity lines of credit		2,395		2,535		-		2,507
Total	$	18,325		18,948		-		19,066

Florida:
(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Commercial:
Commercial real estate	$	109		109		-		112
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		2,014		2,014		-		2,178
Home equity loans		81		81		-		83
Home equity lines of credit		251		251		-		253
Total	$	2,455		2,455		-		2,626

Total:
(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Commercial:
Commercial real estate	$	1,661		1,831		-		1,531
Other		35		35		-		106
Real estate mortgage - 1 to 4 family:
First mortgages		16,114		16,407		-		16,962
Home equity loans		324		344		-		333
Home equity lines of credit		2,646		2,786		-		2,760
Total	$	20,780		21,403		-		21,692

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

	December 31, 2018
New York and other states*:
(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Commercial:
Commercial real estate	$	1,274		1,444		-		1,503
Other		38		88		-		123
Real estate mortgage - 1 to 4 family:
First mortgages		15,210		15,661		-		15,577
Home equity loans		252		272		-		262
Home equity lines of credit		2,772		2,996		-		2,772
Total	$	19,546		20,461		-		20,237

Florida:
(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Commercial:
Commercial real estate	$	112		112		-		57
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		2,293		2,399		-		2,455
Home equity loans		84		84		-		86
Home equity lines of credit		253		253		-		326
Total	$	2,742		2,848		-		2,924

Total:
(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Commercial:
Commercial real estate	$	1,386		1,556		-		1,560
Other		38		88		-		123
Real estate mortgage - 1 to 4 family:
First mortgages		17,503		18,060		-		18,032
Home equity loans		336		356		-		348
Home equity lines of credit		3,025		3,249		-		3,098
Total	$	22,288		23,309		-		23,161

* 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 six months ended June 30, 2019 and 2018.

As of June 30, 2019 and December 31, 2018 impaired loans included approximately $11.2 million and $11.1 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 charge off is taken at that time.  As a result, as of June 30, 2019 and December 31, 2018, 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 6/30/2019						Three months ended 6/30/2018
New York and other states*:	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
(dollars in thousands)
Commercial:
Commercial real estate		1	$	128		128		-	$	-		-
Real estate mortgage - 1 to 4 family:
First mortgages		5		718		718		2		125		125
Home equity loans		-		-		-		-		-		-
Home equity lines of credit		3		278		278		-		-		-
Total		9	$	1,124		1,124		2	$	125		125

Florida: (dollars in thousands)

Number of Contracts

Pre-Modification Outstanding Recorded Investment

Post-Modification Outstanding Recorded Investment

Number of Contracts

Pre-Modification Outstanding Recorded Investment

Post-Modification Outstanding Recorded Investment

Commercial:

Commercial real estate

-

$

-

-

-

$

-

-

Real estate mortgage - 1 to 4 family:

First mortgages

-

-

-

-

-

-

Home equity loans

-

-

-

-

-

-

Home equity lines of credit

-

-

-

-

-

-

Total

-

$

-

-

-

$

-

-

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

	Six months ended 6/30/2019						Six months ended 6/30/2018
New York and other states*:	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
(dollars in thousands)
Commercial:
Commercial real estate		1	$	128		128		-	$	-		-
Real estate mortgage - 1 to 4 family:
First mortgages		9		1,368		1,368		4		598		598
Home equity loans		-		-		-		-		-		-
Home equity lines of credit		3		278		278		2		208		208
Total		13	$	1,774		1,774		6	$	806		806

Florida: (dollars in thousands)

Number of Contracts

Pre-Modification Outstanding Recorded Investment

Post-Modification Outstanding Recorded Investment

Number of Contracts

Pre-Modification Outstanding Recorded Investment

Post-Modification Outstanding Recorded Investment

Commercial:

Commercial real estate

-

$

-

-

-

$

-

-

Real estate mortgage - 1 to 4 family:

First mortgages

-

-

-

-

-

-

Home equity loans

-

-

-

-

-

-

Home equity lines of credit

-

-

-

-

-

-

Total

-

$

-

-

-

$

-

-

* 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.

During the three months ended June 30, 2019 and 2018 there were no TDR’s that defaulted which had been modified during the last twelve months. The following table presents, by class, TDR’s that defaulted during the six months ended June 30, 2019 and 2018 which had been modified within the last twelve months:

	Six months ended 6/30/2019				Six months ended 6/30/2018
New York and other states*:	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
(dollars in thousands)
Commercial:
Commercial real estate		-	$	-		-	$	-
Real estate mortgage - 1 to 4 family:
First mortgages		-		-		-		-
Home equity loans		-		-		-		-
Home equity lines of credit		-		-		1		3
Total		-	$	-		1	$	3

Florida: (dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Commercial:
Commercial real estate		-	$	-		-	$	-
Real estate mortgage - 1 to 4 family:
First mortgages		-		-		1		72
Home equity lines of credit		-		-		-		-
Total		-	$	-		1	$	72

* 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 June 30, 2019 and December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

	June 30, 2019
New York and other states*:
(dollars in thousands)	Pass		Classified		Total
Commercial:
Commercial real estate	$	148,331		5,219		153,550
Other		21,258		1,022		22,280
	$	169,589		6,241		175,830

Florida:
(dollars in thousands)	Pass		Classified		Total
Commercial:
Commercial real estate	$	14,404		-		14,404
Other		273		-		273
	$	14,677		-		14,677

Total:
(dollars in thousands)	Pass		Classified		Total
Commercial:
Commercial real estate	$	162,735		5,219		167,954
Other		21,531		1,022		22,553
	$	184,266		6,241		190,507

* Includes New York, New Jersey and Massachusetts.

	December 31, 2018
New York and other states:
(dollars in thousands)	Pass		Classified		Total
Commercial:
Commercial real estate	$	152,045		4,233		156,278
Other		23,331		999		24,330
	$	175,376		5,232		180,608

Florida:
(dollars in thousands)	Pass		Classified		Total
Commercial:
Commercial real estate	$	15,163		112		15,275
Other		263		-		263
	$	15,426		112		15,538

Total:
(dollars in thousands)	Pass		Classified		Total
Commercial:
Commercial real estate	$	167,208		4,345		171,553
Other		23,594		999		24,593
	$	190,802		5,344		196,146

* Includes New York, New Jersey and Massachusetts.

Included in classified loans in the above tables are impaired loans of $1.3 million and 1.4 million at June 30, 2019 and December 31, 2018, 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 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 June 30, 2019 and December 31, 2018 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 June 30, 2019 and December 31, 2018 is presented in the non-accrual loans table.