XML 135 R12.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Loans and Leases and the Allowance for Loan and Lease Losses
 12 Months Ended
Dec. 31, 2019
Loans and Leases and Allowance for Loan and Lease Losses [Abstract]  
Loans and Leases and the Allowance for Loan and Lease Losses
Loans and Leases

The Company’s loan and lease portfolio was comprised of the following as of December 31, 2019, and December 31, 2018:
 
December 31,
(dollars in thousands)
2019

 
2018

Commercial
 
 
 
Commercial and Industrial
$
1,379,152

 
$
1,331,149

Commercial Mortgage
2,518,051

 
2,302,356

Construction
194,170

 
170,061

Lease Financing
122,454

 
176,226

Total Commercial
4,213,827

 
3,979,792

Consumer
 
 
 
Residential Mortgage
3,891,100

 
3,673,796

Home Equity
1,676,073

 
1,681,442

Automobile
720,286

 
658,133

Other 1
489,606

 
455,611

Total Consumer
6,777,065

 
6,468,982

Total Loans and Leases
$
10,990,892

 
$
10,448,774

1 Comprised of other revolving credit, installment, and lease financing.

Total loans and leases were reported net of unearned fee of $1.3 million and income of $15.1 million as of December 31, 2019 and December 31, 2018, respectively.

Commercial loans and residential mortgage loans of $1.0 billion were pledged to secure an undrawn FRB line of credit as of December 31, 2019, and December 31, 2018.

As of December 31, 2019, and December 31, 2018, residential mortgage loans of $3.1 billion and $2.9 billion, were pledged under a blanket pledge arrangement to secure FHLB advances, respectively. See Note 10 Other Debt for FHLB advances outstanding as of December 31, 2019, and December 31, 2018.

Net gains related to sales of residential mortgage loans, recorded as a component of mortgage banking income, were $5.3 million, $1.5 million, and $4.9 million for the years ended December 31, 2019, December 31, 2018, and December 31, 2017, respectively. Net gains on sales of commercial loans were not material for the years ended December 31, 2019, December 31, 2018, and December 31, 2017.

Substantially all of the Company’s lending activity is with customers located in Hawaii. A substantial portion of the Company’s real estate loans are secured by real estate in Hawaii.
Allowance for Loan and Lease Losses

The following presents by portfolio segment, the activity in the Allowance for the years ended December 31, 2019, December 31, 2018, and December 31, 2017. The following also presents by portfolio segment, the balance in the Allowance disaggregated on the basis of the Company’s impairment measurement method and the related recorded investment in loans and leases as of December 31, 2019, December 31, 2018, and December 31, 2017.
(dollars in thousands)
Commercial

 
Consumer

 
Total

For the Year Ended December 31, 2019
 
 
 
 
 
Allowance for Loan and Lease Losses:
 
 
 
 
 
Balance at Beginning of Period
$
66,874

 
$
39,819

 
$
106,693

Loans and Leases Charged-Off
(2,738
)
 
(21,217
)
 
(23,955
)
Recoveries on Loans and Leases Previously Charged-Off
1,513

 
9,776

 
11,289

Net Loans and Leases Recovered (Charged-Off)
(1,225
)
 
(11,441
)
 
(12,666
)
Provision for Credit Losses
8,152

 
7,848

 
16,000

Balance at End of Period
$
73,801

 
$
36,226

 
$
110,027

As of December 31, 2019
 
 
 
 
 
Allowance for Loan and Lease Losses:
 
 
 
 
 
Individually Evaluated for Impairment
$
2,657

 
$
3,246

 
$
5,903

Collectively Evaluated for Impairment
71,144

 
32,980

 
104,124

Total
$
73,801

 
$
36,226

 
$
110,027

Recorded Investment in Loans and Leases:
 
 
 
 
 
Individually Evaluated for Impairment
$
35,442

 
$
39,760

 
$
75,202

Collectively Evaluated for Impairment
4,178,385

 
6,737,305

 
10,915,690

Total
$
4,213,827

 
$
6,777,065

 
$
10,990,892

 
 
 
 
 
 
For the Year Ended December 31, 2018
 
 
 
 
 
Allowance for Loan and Lease Losses:
 
 
 
 
 
Balance at Beginning of Period
$
65,822

 
$
41,524

 
$
107,346

Loans and Leases Charged-Off
(1,505
)
 
(23,059
)
 
(24,564
)
Recoveries on Loans and Leases Previously Charged-Off
2,039

 
8,447

 
10,486

Net Loans and Leases Recovered (Charged-Off)
534

 
(14,612
)
 
(14,078
)
Provision for Credit Losses
518

 
12,907

 
13,425

Balance at End of Period
$
66,874

 
$
39,819

 
$
106,693

As of December 31, 2018
 
 
 
 
 
Allowance for Loan and Lease Losses:
 
 
 
 
 
Individually Evaluated for Impairment
$
222

 
$
3,754

 
$
3,976

Collectively Evaluated for Impairment
66,652

 
36,065

 
102,717

Total
$
66,874

 
$
39,819

 
$
106,693

Recorded Investment in Loans and Leases:
 
 
 
 
 
Individually Evaluated for Impairment
$
12,298

 
$
42,327

 
$
54,625

Collectively Evaluated for Impairment
3,967,494

 
6,426,655

 
10,394,149

Total
$
3,979,792

 
$
6,468,982

 
$
10,448,774

 
 
 
 
 
 
For the Year Ended December 31, 2017
 
 
 
 
 
Allowance for Loan and Lease Losses:
 
 
 
 
 
Balance at Beginning of Period
$
65,680

 
$
38,593

 
$
104,273

Loans and Leases Charged-Off
(1,408
)
 
(21,847
)
 
(23,255
)
Recoveries on Loans and Leases Previously Charged-Off
1,485

 
7,943

 
9,428

Net Loans and Leases Recovered (Charged-Off)
77

 
(13,904
)
 
(13,827
)
Provision for Credit Losses
65

 
16,835

 
16,900

Balance at End of Period
$
65,822

 
$
41,524

 
$
107,346

As of December 31, 2017
 
 
 
 
 
Allowance for Loan and Lease Losses:
 
 
 
 
 
Individually Evaluated for Impairment
$
141

 
$
3,775

 
$
3,916

Collectively Evaluated for Impairment
65,681

 
37,749

 
103,430

Total
$
65,822

 
$
41,524

 
$
107,346

Recorded Investment in Loans and Leases:
 
 
 
 
 
Individually Evaluated for Impairment
$
20,216

 
$
41,002

 
$
61,218

Collectively Evaluated for Impairment
3,746,282

 
5,989,447

 
9,735,729

Total
$
3,766,498

 
$
6,030,449

 
$
9,796,947


Credit Quality Indicators

The Company uses several credit quality indicators to manage credit risk in an ongoing manner. The Company uses an internal credit risk rating system that categorizes loans and leases into pass, special mention, or classified categories. Credit risk ratings are applied individually to those classes of loans and leases that have significant or unique credit characteristics that benefit from a case-by-case evaluation. These are typically loans and leases to businesses or individuals in the classes which comprise the commercial portfolio segment. Groups of loans and leases that are underwritten and structured using standardized criteria and characteristics, such as statistical models (e.g., credit scoring or payment performance), are typically risk-rated and monitored collectively. These are typically loans and leases to individuals in the classes which comprise the consumer portfolio segment.

The following are the definitions of the Company’s credit quality indicators:

Pass:
Loans and leases in all classes within the commercial and consumer portfolio segments that are not adversely rated, are contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan or lease agreement. Management believes that there is a low likelihood of loss related to those loans and leases that are considered Pass.

Special Mention:
Loans and leases that have potential weaknesses that deserve management’s close attention. If not addressed, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease. Management believes that there is a moderate likelihood of some loss related to those loans and leases that are considered Special Mention.

Classified:
Loans and leases in the classes within the commercial portfolio segment that are inadequately protected by the sound worth and paying capacity of the borrower or of the collateral pledged, if any. Classified loans and leases are also those in the classes within the consumer portfolio segment that are past due 90 days or more as to principal or interest. Residential mortgage loans that are past due 90 days or more as to principal or interest may be considered pass if the Company is in the process of collection and the current loan-to-value ratio is 60% or less. Home equity loans that are past due 90 days or more as to principal or interest may be considered pass if the Company is in the process of collection, the first mortgage is with the Company, and the current combined loan-to-value ratio is 60% or less. Residential mortgage and home equity loans may be current as to principal and interest, but may be considered Classified for a period of up to six months following a loan modification. Following a period of demonstrated performance in accordance with the modified contractual terms, the loan may be removed from classified status. Management believes that there is a distinct possibility that the Company will sustain some loss if the deficiencies related to Classified loans and leases are not corrected in a timely manner.

The Company’s credit quality indicators are periodically updated on a case-by-case basis. The following presents by class and by credit quality indicator, the recorded investment in the Company’s loans and leases as of December 31, 2019, and December 31, 2018.
 
December 31, 2019
(dollars in thousands)
Commercial
and Industrial

 
Commercial
Mortgage

 
Construction

 
Lease
Financing

 
Total
Commercial

Pass
$
1,306,040

 
$
2,463,858

 
$
188,832

 
$
120,933

 
$
4,079,663

Special Mention
37,722

 
16,453

 
4,148

 
—

 
58,323

Classified
35,390

 
37,740

 
1,190

 
1,521

 
75,841

Total
$
1,379,152

 
$
2,518,051

 
$
194,170

 
$
122,454

 
$
4,213,827

 
(dollars in thousands)
Residential
Mortgage

 
Home
Equity

 
Automobile

 
Other 1

 
Total
Consumer

Pass
$
3,886,389

 
$
1,671,468

 
$
719,337

 
$
488,113

 
$
6,765,307

Classified
4,711

 
4,605

 
949

 
1,493

 
11,758

Total
$
3,891,100

 
$
1,676,073

 
$
720,286

 
$
489,606

 
$
6,777,065

Total Recorded Investment in Loans and Leases
 
 
 
 
 
 
 
$
10,990,892

 
 
December 31, 2018
(dollars in thousands)
Commercial
and Industrial

 
Commercial
Mortgage

 
Construction

 
Lease
Financing

 
Total
Commercial

Pass
$
1,302,278

 
$
2,256,128

 
$
168,740

 
$
175,223

 
$
3,902,369

Special Mention
17,688

 
30,468

 
—

 
5

 
48,161

Classified
11,183

 
15,760

 
1,321

 
998

 
29,262

Total
$
1,331,149

 
$
2,302,356

 
$
170,061

 
$
176,226

 
$
3,979,792

 
(dollars in thousands)
Residential
Mortgage

 
Home
Equity

 
Automobile

 
Other 1

 
Total
Consumer

Pass
$
3,668,475

 
$
1,677,193

 
$
657,620

 
$
454,697

 
$
6,457,985

Classified
5,321

 
4,249

 
513

 
914

 
10,997

Total
$
3,673,796

 
$
1,681,442

 
$
658,133

 
$
455,611

 
$
6,468,982

Total Recorded Investment in Loans and Leases
 
 
 
 
 
 
 
$
10,448,774

1     Comprised of other revolving credit, installment, and lease financing.

Aging Analysis

The following presents by class, an aging analysis of the Company’s loan and lease portfolio as of December 31, 2019, and December 31, 2018.
(dollars in thousands)
30 - 59
Days
Past Due

 
60 - 89
Days
Past Due

 
Past Due
90 Days
or More

 
Non-
Accrual

 
Total
Past Due and
Non-Accrual

 
Current

 
Total Loans
and Leases

 
Non-Accrual
Loans and
Leases that
are Current 2

As of December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and Industrial
$
12,534

 
$
148

 
$
—

 
$
830

 
$
13,512

 
$
1,365,640

 
$
1,379,152

 
$
421

Commercial Mortgage
2,998

 
—

 
—

 
9,244

 
12,242

 
2,505,809

 
2,518,051

 
9,244

Construction
101

 
51

 
—

 
—

 
152

 
194,018

 
194,170

 
—

Lease Financing
720

 
—

 
—

 
—

 
720

 
121,734

 
122,454

 
—

Total Commercial
16,353

 
199

 
—

 
10,074

 
26,626

 
4,187,201

 
4,213,827

 
9,665

Consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential Mortgage
6,097

 
2,070

 
1,839

 
4,125

 
14,131

 
3,876,969

 
3,891,100

 
1,429

Home Equity
3,949

 
2,280

 
4,125

 
3,181

 
13,535

 
1,662,538

 
1,676,073

 
412

Automobile
16,067

 
4,154

 
949

 
—

 
21,170

 
699,116

 
720,286

 
—

Other 1
3,498

 
2,074

 
1,493

 
—

 
7,065

 
482,541

 
489,606

 
—

Total Consumer
29,611

 
10,578

 
8,406

 
7,306

 
55,901

 
6,721,164

 
6,777,065

 
1,841

Total
$
45,964

 
$
10,777

 
$
8,406

 
$
17,380

 
$
82,527

 
$
10,908,365

 
$
10,990,892

 
$
11,506

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and Industrial
$
3,653

 
$
118

 
$
10

 
$
542

 
$
4,323

 
$
1,326,826

 
$
1,331,149

 
$
515

Commercial Mortgage
561

 
—

 
—

 
2,040

 
2,601

 
2,299,755

 
2,302,356

 
2,040

Construction
—

 
—

 
—

 
—

 
—

 
170,061

 
170,061

 
—

Lease Financing
—

 
—

 
—

 
—

 
—

 
176,226

 
176,226

 
—

Total Commercial
4,214

 
118

 
10

 
2,582

 
6,924

 
3,972,868

 
3,979,792

 
2,555

Consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential Mortgage
5,319

 
638

 
2,446

 
5,321

 
13,724

 
3,660,072

 
3,673,796

 
1,203

Home Equity
3,323

 
1,581

 
2,684

 
3,671

 
11,259

 
1,670,183

 
1,681,442

 
765

Automobile
12,372

 
2,240

 
513

 
—

 
15,125

 
643,008

 
658,133

 
—

Other 1
2,913

 
1,245

 
914

 
—

 
5,072

 
450,539

 
455,611

 
—

Total Consumer
23,927

 
5,704

 
6,557

 
8,992

 
45,180

 
6,423,802

 
6,468,982

 
1,968

Total
$
28,141

 
$
5,822

 
$
6,567

 
$
11,574

 
$
52,104

 
$
10,396,670

 
$
10,448,774

 
$
4,523

1 Comprised of other revolving credit, installment, and lease financing.
2 Represents non-accrual loans that are not past due 30 days or more; however, full payment of principal and interest is still not expected.




Impaired Loans

The following presents by class, information related to impaired loans as of December 31, 2019, and December 31, 2018.
(dollars in thousands)
Recorded
Investment

 
Unpaid
Principal
Balance

 
Related
Allowance for
Loan Losses

December 31, 2019
 
 
 
 
 
     Impaired Loans with No Related Allowance Recorded:
 
 
 
 
 
Commercial
 
 
 
 
 
Commercial and Industrial
$
3,334

 
$
3,334

 
$
—

Commercial Mortgage
10,658

 
15,774

 
—

Construction
1,190

 
1,190

 
—

Total Commercial
15,182

 
20,298

 
—

Total Impaired Loans with No Related Allowance Recorded
$
15,182

 
$
20,298

 
$
—

 
 
 
 
 
 
     Impaired Loans with an Allowance Recorded:
 
 
 
 
 
Commercial
 
 
 
 
 
Commercial and Industrial
$
18,467

 
$
18,750

 
$
2,552

Commercial Mortgage
1,793

 
1,793

 
105

Total Commercial
20,260

 
20,543

 
2,657

Consumer
 
 
 
 
 
Residential Mortgage
17,939

 
21,553

 
2,631

Home Equity
3,085

 
3,085

 
355

Automobile
17,086

 
17,086

 
212

Other 1
1,650

 
1,650

 
48

Total Consumer
39,760

 
43,374

 
3,246

Total Impaired Loans with an Allowance Recorded
$
60,020

 
$
63,917

 
$
5,903

 
 
 
 
 
 
     Impaired Loans:
 
 
 
 
 
Commercial
$
35,442

 
$
40,841

 
$
2,657

Consumer
39,760

 
43,374

 
3,246

Total Impaired Loans
$
75,202

 
$
84,215

 
$
5,903

 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
Impaired Loans with No Related Allowance Recorded:
 
 
 
 
 
Commercial
 
 
 
 
 
Commercial and Industrial
$
4,587

 
$
4,587

 
$
—

Commercial Mortgage
2,712

 
6,212

 
—

Construction
1,321

 
1,321

 
—

Total Commercial
8,620

 
12,120

 
—

Total Impaired Loans with No Related Allowance Recorded
$
8,620

 
$
12,120

 
$
—

 
 
 
 
 
 
Impaired Loans with an Allowance Recorded:
 
 
 
 
 
Commercial
 
 
 
 
 
Commercial and Industrial
$
1,856

 
$
2,099

 
$
130

Commercial Mortgage
1,822

 
1,822

 
92

Total Commercial
3,678

 
3,921

 
222

Consumer
 
 
 
 
 
Residential Mortgage
19,753

 
23,635

 
3,051

Home Equity
3,359

 
3,359

 
350

Automobile
17,117

 
17,117

 
296

Other 1
2,098

 
2,098

 
57

Total Consumer
42,327

 
46,209

 
3,754

Total Impaired Loans with an Allowance Recorded
$
46,005

 
$
50,130

 
$
3,976

 
 
 
 
 
 
Impaired Loans:
 
 
 
 
 
Commercial
$
12,298

 
$
16,041

 
$
222

Consumer
42,327

 
46,209

 
3,754

Total Impaired Loans
$
54,625

 
$
62,250

 
$
3,976

1 Comprised of other revolving credit and installment financing.
The following presents by class, information related to the average recorded investment and interest income recognized on impaired loans for the years ended December 31, 2019, and December 31, 2018.
 
Year Ended
December 31, 2019
 
Year Ended
December 31, 2018
(dollars in thousands)
Average
Recorded
Investment

 
Interest
Income
Recognized

 
Average
Recorded
Investment

 
Interest
Income
Recognized

Impaired Loans with No Related Allowance Recorded:
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
Commercial and Industrial
$
4,447

 
$
284

 
$
6,342

 
$
310

Commercial Mortgage
8,308

 
62

 
4,642

 
160

Construction
1,243

 
81

 
1,360

 
69

Total Commercial
13,998

 
427

 
12,344

 
539

Total Impaired Loans with No Related Allowance Recorded
$
13,998

 
$
427

 
$
12,344

 
$
539

 
 
 
 
 
 
 
 
Impaired Loans with an Allowance Recorded:
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
Commercial and Industrial
$
5,651

 
$
82

 
$
1,475

 
$
100

Commercial Mortgage
3,147

 
25

 
623

 
25

Total Commercial
8,798

 
107

 
2,098

 
125

Consumer
 
 
 
 
 
 
 
Residential Mortgage
18,607

 
774

 
20,324

 
1,080

Home Equity
3,272

 
156

 
2,676

 
121

Automobile
17,529

 
1,179

 
16,190

 
1,116

Other 1
1,783

 
153

 
2,624

 
215

Total Consumer
41,191

 
2,262

 
41,814

 
2,532

Total Impaired Loans with an Allowance Recorded
$
49,989

 
$
2,369

 
$
43,912

 
$
2,657

 
 
 
 
 
 
 
 
Impaired Loans:
 
 
 
 
 
 
 
Commercial
$
22,796

 
$
534

 
$
14,442

 
$
664

Consumer
41,191

 
2,262

 
41,814

 
2,532

Total Impaired Loans
$
63,987

 
$
2,796

 
$
56,256

 
$
3,196

1 Comprised of other revolving credit and installment financing.

For the year ended December 31, 2017, the average recorded investment in impaired loans was $60.4 million and the interest income recognized on impaired loans was $2.8 million. For the years ended December 31, 2019, December 31, 2018, and December 31, 2017, the amount of interest income recognized by the Company within the period that the loans were impaired were primarily related to loans modified in a troubled debt restructuring that were on accrual status. For the years ended December 31, 2019, December 31, 2018, and December 31, 2017, the amount of interest income recognized using a cash-basis method of accounting during the time within that period that the loans were impaired was not material.

Modifications

A modification of a loan constitutes a troubled debt restructuring (“TDR”) when the Company for economic or legal reasons related to a borrower’s financial difficulties grants a concession to the borrower that it would not otherwise consider. Loans modified in a TDR were $69.1 million and $54.0 million as of December 31, 2019, and December 31, 2018, respectively. As of December 31, 2019, there were $0.3 million commitments to lend additional funds on loans modified in a TDR. As of December 31, 2018, there were $0.2 million commitments to lend additional funds on loans modified in a TDR.

The Company offers various types of concessions when modifying a loan or lease. Commercial and industrial loans modified in a TDR often involve temporary interest-only payments, term extensions, and converting revolving credit lines to term loans. Additional collateral, a co-borrower, or a guarantor is often requested. Commercial mortgage and construction loans modified in a TDR often involve reducing the interest rate for the remaining term of the loan, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, or substituting or adding a co-borrower or guarantor. Construction loans modified in a TDR may also involve extending the interest-only payment period. Residential mortgage loans modified in a TDR generally include a lower interest rate and the loan being fully amortized for up to 40 years from the modification effective date. In some cases, the Company may forbear a portion of the unpaid principal balance with a balloon payment due upon maturity or pay-off of the loan. Land loans are also included in the class of residential mortgage loans. Land loans are typically structured as interest-only monthly payments with a balloon payment due at maturity. Land loan modifications usually involve extending the interest-only payments up to an additional five years with a balloon payment due at maturity, or re-amortizing the remaining balance over a period up to 360 months. Interest rates are not changed for land loan modifications. Home equity modifications are made infrequently and uniquely designed to meet the specific needs of each borrower. Automobile loans modified in a TDR are primarily comprised of loans where the Company has lowered monthly payments by extending the term.

Loans modified in a TDR are typically already on non-accrual status and partial charge-offs have in some cases already been taken against the outstanding loan balance. As a result, loans modified in a TDR may have the financial effect of increasing the specific Allowance associated with the loan. An Allowance for impaired commercial and consumer loans that have been modified in a TDR is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent. Management exercises significant judgment in developing these estimates.

The following presents by class, information related to loans modified in a TDR during the years ended December 31, 2019, and December 31, 2018.
 
Loans Modified as a TDR for the
Year Ended December 31, 2019
 
Loans Modified as a TDR for the
Year Ended December 31, 2018
Troubled Debt Restructurings  
(dollars in thousands)
Number of
Contracts

 
Recorded
Investment
(as of period end) 1

 
Increase in
Allowance
(as of period end)

 
Number of
Contracts

 
Recorded
Investment
(as of period end) 1

 
Increase in
Allowance
(as of period end)

Commercial
 
 
 
 
 
 
 
 
 
 
 
Commercial and Industrial
8

 
$
17,585

 
$
2,465

 
12

 
$
1,449

 
$
96

Commercial Mortgage
1

 
3,623

 
—

 
1

 
1,650

 
74

Total Commercial
9

 
21,208

 
2,465

 
13

 
3,099

 
170

Consumer
 
 
 
 
 
 
 
 
 
 
 
Residential Mortgage
1

 
57

 
0

 
6

 
1,458

 
200

Home Equity
4

 
368

 
9

 
9

 
1,438

 
77

Automobile
332

 
5,911

 
73

 
366

 
7,400

 
128

Other 2
95

 
572

 
17

 
138

 
927

 
25

Total Consumer
432

 
6,908

 
99

 
519

 
11,223

 
430

Total
441

 
$
28,116

 
$
2,564

 
532

 
$
14,322

 
$
600

1
The period end balances reflect all partial paydowns and charge-offs since the modification date. TDRs fully paid off, charged off, or foreclosed upon by period end are not included.
2
Comprised of other revolving credit and installment financing.


The following presents by class, loans modified in a TDR that defaulted during the year ended December 31, 2019, and December 31, 2018, and within twelve months of their modification date. A TDR is considered to be in default once it becomes 60 days or more past due following a modification.
 
Year Ended December 31, 2019
 
Year Ended December 31, 2018
TDRs that Defaulted During the Period,
    Within Twelve Months of their Modification Date 
(dollars in thousands)
Number of
Contracts

 
Recorded
Investment
(as of period end) 1

 
Number of
Contracts

 
Recorded
Investment
(as of period end) 1

Commercial
 
 
 
 
 
 
 
Commercial and Industrial
—

 
$
—

 
1

 
$
3

Total Commercial
—

 
—

 
1

 
3

Consumer
 
 
 
 
 
 
 
Residential Mortgage
1

 
132

 
—

 
—

Home Equity
1

 
192

 
—

 
—

Automobile
40

 
607

 
38

 
680

Other 2
22

 
129

 
34

 
194

Total Consumer
64

 
1,060

 
72

 
874

Total
64

 
$
1,060

 
73

 
$
877

1 The period end balances reflect all paydowns and charge-offs since the modification date. TDRs fully paid off, charged off, or foreclosed upon by period end are not included.
2
Comprised of other revolving credit and installment financing.

Loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a TDR subsequently default, the Company evaluates the loan for possible further impairment. The specific Allowance associated with the loan may be increased, adjustments may be made in the allocation of the Allowance, or partial charge-offs may be taken to further write-down the carrying value of the loan.

Foreclosure Proceedings

Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure totaled $1.0 million as of December 31, 2019.