Loans
 12 Months Ended
Dec. 31, 2015
Loans and Leases Receivable Disclosure [Abstract]  
Financing Receivables [Text Block]
LOANS (Dollars In Thousands)

Loan Categories and Past Due Loans

The following table presents loan balances outstanding as of December 31, 2015 and December 31, 2014 and an analysis of the recorded investment in loans that are past due at these dates.  Generally, Arrow considers a loan past due 30 or more days if the borrower is two or more payments past due.
Schedule of Past Due Loans by Loan Category
 
 
 
Commercial
 
 
 
 
 
 
 
Commercial
 
Real Estate
 
Consumer
 
Residential
 
Total
December 31, 2015
 
 
 
 
 
 
 
 
 
Loans Past Due 30-59 Days
$
98

 
$
—

 
$
4,598

 
$
955

 
$
5,651

Loans Past Due 60-89 Days
186

 
—

 
1,647

 
1,370

 
3,203

Loans Past Due 90 or More Days
203

 
1,469

 
295

 
2,184

 
4,151

Total Loans Past Due
487

 
1,469

 
6,540

 
4,509

 
13,005

Current Loans
102,100

 
383,470

 
457,983

 
617,394

 
1,560,947

Total Loans
$
102,587

 
$
384,939

 
$
464,523

 
$
621,903

 
$
1,573,952

 
 
 
 
 
 
 
 
 
 
Loans 90 or More Days Past Due and Still Accruing Interest
$
—

 
$
—

 
$
—

 
$
187

 
$
187

Nonaccrual Loans
$
387

 
$
2,401

 
$
450

 
$
3,195

 
$
6,433

 
 
 
 
 
 
 
 
 
 
December 31, 2014
 
 
 
 
 
 
 
 
 
Loans Past Due 30-59 Days
$
124

 
$
432

 
$
4,167

 
$
482

 
$
5,205

Loans Past Due 60-89 Days
154

 
7

 
1,225

 
1,495

 
2,881

Loans Past Due 90 or more Days
345

 
1,832

 
206

 
2,999

 
5,382

Total Loans Past Due
623

 
2,271

 
5,598

 
4,976

 
13,468

Current Loans
98,888

 
337,841

 
431,443

 
531,628

 
1,399,800

Total Loans
$
99,511

 
$
340,112

 
$
437,041

 
$
536,604

 
$
1,413,268

 
 
 
 
 
 
 
 
 
 
Loans 90 or More Days Past Due and Still Accruing Interest
$
—

 
$
—

 
$
—

 
$
537

 
$
537

Nonaccrual Loans
$
473

 
$
2,071

 
$
415

 
$
3,940

 
$
6,899



The Company disaggregates its loan portfolio into the following four categories:

Commercial - The Company offers a variety of loan options to meet the specific needs of our commercial customers including term loans, time notes and lines of credit. Such loans are made available to businesses for working capital needs such as inventory and receivables, business expansion and equipment purchases. Generally, a collateral lien is placed on equipment or other assets owned by the borrower. These loans carry a higher risk than commercial real estate loans due to the nature of the underlying collateral, which can be business assets such as equipment and accounts receivable and generally have a lower liquidation value than real estate. In the event of default by the borrower, the Company may be required to liquidate collateral at deeply discounted values. To reduce the risk, management usually obtains personal guarantees of the borrowers.

Commercial Real Estate - The Company offers commercial real estate loans to finance real estate purchases, refinancings, expansions and improvements to commercial properties. Commercial real estate loans are made to finance the purchases of real property which generally consists of real estate with completed structures. These commercial real estate loans are secured by first liens on the real estate, which may include apartments, commercial structures, housing businesses, healthcare facilities, and both owner and non owner-occupied facilities. These loans are typically less risky than commercial loans, since they are secured by real estate and buildings, and are generally originated in amounts of no more than 80% of the appraised value of the property. However, the Company also offers commercial construction and land development loans to finance projects, primarily within the communities that we serve. Many projects will ultimately be used by the borrowers' businesses, while others are developed for resale. These real estate loans are also secured by first liens on the real estate, which may include apartments, commercial structures, housing business, healthcare facilities and both owner-occupied and non-owner-occupied facilities. There is enhanced risk during the construction period, since the loan is secured by an incomplete project.


Consumer Loans - The Company offers a variety of consumer installment loans to finance personal expenditures. Most of these loans carry a fixed rate of interest with principal repayment terms typically ranging from one to five years, based upon the nature of the collateral and the size of the loan. In addition to installment loans, the Company also offers personal lines of credit and overdraft protection. Several loans are unsecured, which carry a higher risk of loss. Also included in this category are automobile loans. The Company primarily finances the purchases of automobiles indirectly through dealer relationships located throughout upstate New York and Vermont. Most of these loans carry a fixed rate of interest with principal repayment terms typically ranging from three to seven years. Indirect consumer loans are underwritten on a secured basis using the underlying collateral being financed.

Residential - Residential real estate loans consist primarily of loans secured by first or second mortgages on primary residences. We originate adjustable-rate and fixed-rate one-to-four-family residential real estate loans for the construction, purchase or refinancing of an existing mortgage. These loans are collateralized primarily by owner-occupied properties generally located in the Company’s market area. Loans on one-to-four-family residential real estate are generally originated in amounts of no more than 80% of the purchase price or appraised value (whichever is lower), or have private mortgage insurance. The Company’s underwriting analysis for residential mortgage loans typically includes credit verification, independent appraisals, and a review of the borrower’s financial condition. Mortgage title insurance and hazard insurance are normally required. It is our general practice to underwrite our residential real estate loans to secondary market standards. Construction loans have a unique risk, because they are secured by an incomplete dwelling. This risk is reduced through periodic site inspections, including one at each loan draw period. In addition, the Company offers fixed home equity loans as well as home equity lines of credit to consumers to finance home improvements, debt consolidation, education and other uses.  Our policy allows for a maximum loan to value ratio of 80%, although periodically higher advances are allowed.  The Company originates home equity lines of credit and second mortgage loans (loans secured by a second junior lien position on one-to-four-family residential real estate).  Risk is generally reduced through underwriting criteria, which include credit verification, appraisals, a review of the borrower's financial condition, and personal cash flows.  A security interest, with title insurance when necessary, is taken in the underlying real estate.


Allowance for Loan Losses

The following table presents a rollforward of the allowance for loan losses and other information pertaining to the allowance for loan losses:
Allowance for Loan Losses
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
Commercial
 
Real Estate
 
Consumer
 
Residential
 
Unallocated
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Rollfoward of the Allowance for Loan Losses for the Year Ended:
 
 
 
 
 
 
 
 
 
 
 
December 31, 2014
$
2,100

 
$
4,128

 
$
5,210

 
$
3,369

 
$
763

 
$
15,570

Charge-offs
(62
)
 
(7
)
 
(711
)
 
(326
)
 
—

 
(1,106
)
Recoveries
34

 
—

 
193

 
—

 
—

 
227

Provision
(245
)
 
399

 
862

 
747

 
(416
)
 
1,347

December 31, 2015
$
1,827

 
$
4,520

 
$
5,554

 
$
3,790

 
$
347

 
$
16,038

 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
$
1,886

 
$
3,962

 
$
4,478

 
$
3,026

 
$
1,082

 
$
14,434

Charge-offs
(212
)
 
—

 
(718
)
 
(91
)
 
—

 
(1,021
)
Recoveries
86

 
—

 
223

 
—

 
—

 
309

Provision
340

 
166

 
1,227

 
434

 
(319
)
 
1,848

December 31, 2014
$
2,100

 
$
4,128

 
$
5,210

 
$
3,369

 
$
763

 
$
15,570

 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
$
2,344

 
$
3,651

 
$
4,840

 
$
3,405

 
$
1,058

 
$
15,298

Charge-offs
(926
)
 
(11
)
 
(459
)
 
(15
)
 
—

 
(1,411
)
Recoveries
88

 
—

 
259

 
—

 
—

 
347

Provision
380

 
322

 
(162
)
 
(364
)
 
24

 
200

December 31, 2013
$
1,886

 
$
3,962

 
$
4,478

 
$
3,026

 
$
1,082

 
$
14,434

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for Loan Losses
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
Commercial
 
Real Estate
 
Consumer
 
Residential
 
Unallocated
 
Total
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses - Loans Individually Evaluated for Impairment
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Allowance for loan losses - Loans Collectively Evaluated for Impairment
$
1,827

 
$
4,520

 
$
5,554

 
$
3,790

 
$
347

 
$
16,038

Ending Loan Balance - Individually Evaluated for Impairment
$
155

 
$
2,372

 
$
114

 
$
645

 
$
—

 
$
3,286

Ending Loan Balance - Collectively Evaluated for Impairment
$
102,432

 
$
382,567

 
$
464,409

 
$
621,258

 
$
—

 
$
1,570,666

 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses - Loans Individually Evaluated for Impairment
$
—

 
$
—

 
$
—

 
$
109

 
$
—

 
$
109

Allowance for loan losses - Loans Collectively Evaluated for Impairment
$
2,100


$
4,128


$
5,210


$
3,260


$
763

 
$
15,461

Ending Loan Balance - Individually Evaluated for Impairment
$
494

 
$
1,492

 
$
118

 
$
2,237

 
$
—

 
$
4,341

Ending Loan Balance - Collectively Evaluated for Impairment
$
99,017

 
$
338,620

 
$
436,923

 
$
534,367

 
$
—

 
$
1,408,927



Through the provision for loan losses, an allowance for loan losses is maintained that reflects our best estimate of the inherent risk of loss in the Company’s loan portfolio as of the balance sheet date. Additions are made to the allowance for loan losses through a periodic provision for loan losses. Actual loan losses are charged against the allowance for loan losses when loans are deemed uncollectible and recoveries of amounts previously charged off are recorded as credits to the allowance for loan losses.
Our loan officers and risk managers meet at least quarterly to discuss and review the conditions and risks associated with certain criticized and classified commercial-related relationships. In addition, our independent internal loan review department performs periodic reviews of the credit quality indicators on individual loans in our commercial loan portfolio.
We use a two-step process to determine the provision for loan losses and the amount of the allowance for loan losses. We measure impairment on our impaired loans on a quarterly basis. Our impaired loans are generally nonaccrual loans over $250 thousand and all troubled debt restructured loans. Our impaired loans are generally considered to be collateral dependent with the specific reserve, if any, determined based on the value of the collateral less estimated costs to sell.
The remainder of the portfolio is evaluated on a pooled basis, as described below. For each homogeneous loan pool, we estimate a total loss factor based on the historical net loss rates adjusted for applicable qualitative factors. We update the total loss factors assigned to each loan category on a quarterly basis. Our indirect automobile loan portfolio reflects a modest shift, since mid 2013, to a slightly larger percentage of loans within the portfolio comprised of loans to individuals with lower credit scores. For the commercial, commercial construction, and commercial real estate categories, we further segregate the loan categories by credit risk profile (pools of loans graded pass, special mention and accruing substandard). Additional description of the credit risk classifications is detailed in the Credit Quality Indicators section of this note.
We determine the historical net loss rate for each loan category using a trailing three-year net charge-off average. While historical net loss experience provides a reasonable starting point for our analysis, historical net losses, or even recent trends in net losses, do not by themselves form a sufficient basis to determine the appropriate level of the allowance for loan losses. Therefore, we also consider and adjust historical net loss factors for qualitative factors that impact the inherent risk of loss associated with our loan categories within our total loan portfolio. These include:
 
•
Changes in the volume and severity of past due, nonaccrual and adversely classified loans
•
Changes in the nature and volume of the portfolio and in the terms of loans
•
Changes in the value of the underlying collateral for collateral dependent loans
•
Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses
•
Changes in the quality of the loan review system
•
Changes in the experience, ability, and depth of lending management and other relevant staff
•
Changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio
•
The existence and effect of any concentrations of credit, and changes in the level of such concentrations
•
The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing portfolio or pool

While not a significant part of the allowance for loan losses methodology, we also maintain an unallocated portion of the total allowance for loan losses related to the overall level of imprecision inherent in the estimation of the appropriate level of allowance for loan losses.

    
Loan Credit Quality Indicators

The following table presents the credit quality indicators by loan category at December 31, 2015 and December 31, 2014:
Loan Credit Quality Indicators
 
 
 
Commercial
 
 
 
 
 
 
 
Commercial
 
Real Estate
 
Consumer
 
Residential
 
Total
December 31, 2015
 
 
 
 
 
 
 
 
 
Credit Risk Profile by Creditworthiness Category:
 
 
 
 
 
 
 
 
 
Satisfactory
$
93,607

 
$
360,654

 
 
 
 
 
$
454,261

Special Mention
1,070

 
4,901

 
 
 
 
 
5,971

Substandard
7,910

 
19,384

 
 
 
 
 
27,294

Doubtful
—

 
—

 
 
 
 
 
—

Credit Risk Profile Based on Payment Activity:
 
 
 
 
 
 
 
 
 
Performing
 
 
 
 
$
464,074

 
$
618,521

 
1,082,595

Nonperforming
 
 
 
 
449

 
3,382

 
3,831

 
 
 
 
 
 
 
 
 
 
December 31, 2014
 
 
 
 
 
 
 
 
 
Credit Risk Profile by Creditworthiness Category:
 
 
 
 
 
 
 
 
 
Satisfactory
$
85,949

 
$
317,747

 
 
 
 
 
$
403,696

Special Mention
2,442

 
3,718

 
 
 
 
 
6,160

Substandard
11,120

 
18,647

 
 
 
 
 
29,767

Doubtful
—

 
—

 
 
 
 
 
—

Credit Risk Profile Based on Payment Activity:
 
 
 
 
 
 
 
 
 
Performing
 
 
 
 
$
436,626

 
$
532,127

 
968,753

Nonperforming
 
 
 
 
415

 
4,477

 
4,892

 
 
 
 
 
 
 
 
 
 


For the purposes of the table above, nonperforming automobile, residential and other consumer loans are those loans on nonaccrual status or are 90 days or more past due and still accruing interest.

For the allowance calculation, we use an internally developed system of five credit quality indicators to rate the credit worthiness of each commercial loan defined as follows:

1) Satisfactory - "Satisfactory" borrowers have acceptable financial condition with satisfactory record of earnings and sufficient historical and projected cash flow to service the debt.  Borrowers have satisfactory repayment histories and primary and secondary sources of repayment can be clearly identified;

2) Special Mention - Loans in this category have potential weaknesses that deserve management’s close attention.  If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date.  "Special mention" assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.  Loans which might be assigned this credit quality indicator include loans to borrowers with deteriorating financial strength and/or earnings record and loans with potential for problems due to weakening economic or market conditions;

3) Substandard - Loans classified as “substandard” are inadequately protected by the current sound net worth or paying capacity of the borrower or the collateral pledged, if any.  Loans in this category have well defined weaknesses that jeopardize the repayment.  They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected.  “Substandard” loans may include loans which are likely to require liquidation of collateral to effect repayment, and other loans where character or ability to repay has become suspect. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified substandard;

4) Doubtful - Loans classified as “doubtful” have all of the weaknesses inherent in those classified as “substandard” with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of current existing facts, conditions, and values highly questionable and improbable.  Although possibility of loss is extremely high, classification of these loans as “loss” has been deferred due to specific pending factors or events which may strengthen the value (i.e. possibility of additional collateral, injection of capital, collateral liquidation, debt restructure, economic recovery, etc).  Loans classified as “doubtful” need to be placed on non-accrual; and

5) Loss - Loans classified as “loss” are considered uncollectible and of such little value that their continuance as bankable assets is not warranted.  As of the date of the balance sheet, all loans in this category have been charged-off to the allowance for loan losses.  

Commercial loans are generally evaluated on an annual basis depending on the size and complexity of the loan relationship, unless the credit related quality indicator falls to a level of "special mention" or below, when the loan is evaluated quarterly.  The credit quality indicator is one of the factors used in assessing the level of inherent risk of loss in our commercial related loan portfolios.
    
    

Impaired Loans

The following table presents information on impaired loans based on whether the impaired loan has a recorded allowance or no recorded allowance:
Impaired Loans
 
 
 
Commercial
 
 
 
 
 
 
 
Commercial
 
Real Estate
 
Consumer
 
Residential
 
Total
December 31, 2015
 
 
 
 
 
 
 
 
 
Recorded Investment:
 
 
 
 
 
 
 
 
 
With No Related Allowance
$
155

 
$
2,372

 
$
114

 
$
645

 
$
3,286

With a Related Allowance
—

 
—

 
—

 
—

 
—

Unpaid Principal Balance:
 
 
 
 
 
 
 
 
 
With No Related Allowance
$
155

 
$
2,372

 
$
144

 
$
645

 
$
3,316

With a Related Allowance
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
December 31, 2014
 
 
 
 
 
 
 
 
 
Recorded Investment:
 
 
 
 
 
 
 
 
 
With No Related Allowance
$
494

 
$
1,492

 
$
118

 
$
1,678

 
$
3,782

With a Related Allowance
—

 
—

 
—

 
559

 
559

Unpaid Principal Balance:
 
 
 
 
 
 
 
 
 
With No Related Allowance
$
494

 
$
1,492

 
$
118

 
$
1,678

 
$
3,782

With a Related Allowance
—

 
—

 
—

 
559

 
559

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Year-To-Date Period Ended:
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
Average Recorded Balance:


 


 
 
 

 

With No Related Allowance
$
325

 
$
1,932

 
$
116

 
$
1,162

 
$
3,535

With a Related Allowance
—

 
—

 
—

 
280

 
$
280

Interest Income Recognized:
 
 
 
 
 
 
 
 
 
With No Related Allowance
$
—

 
$
9

 
$
14

 
$
—

 
$
23

With a Related Allowance
—

 
—

 
—

 
—

 
—

Cash Basis Income:
 
 
 
 
 
 
 
 
 
With No Related Allowance
$
—

 
$
—

 
$
—

 
$
—

 
$
—

With a Related Allowance
—

 
—

 
—

 
—

 
—

Related Allowance
—

 
—

 
—

 
—

 
$
—

 
 
 
 
 
 
 
 
 
 
December 31, 2014
 
 
 
 
 
 
 
 
 
Average Recorded Balance:
 
 
 
 
 
 
 
 
 
With No Related Allowance
$
348

 
$
1,492

 
$
121

 
$
1,673

 
$
3,634

With a Related Allowance
—

 
—

 
—

 
546

 
$
546

Interest Income Recognized:
 
 
 
 
 
 
 
 
 
With No Related Allowance
$
11

 
$
—

 
$
7

 
$
1

 
$
19

With a Related Allowance
—

 
—

 
—

 
—

 
—

Cash Basis Income:
 
 
 
 
 
 
 
 
 
With No Related Allowance
$
—

 
$
—

 
$
—

 
$
—

 
$
—

With a Related Allowance
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
 
 
 
 
 
 
 
 
Average Recorded Balance:
 
 
 
 
 
 
 
 
 
With No Related Allowance
$
133

 
$
2,157

 
$
188

 
$
1,700

 
$
4,178

With a Related Allowance
694

 
—

 
—

 
—

 
$
694

Interest Income Recognized:
 
 
 
 
 
 
 
 
 
With No Related Allowance
$
4

 
$
—

 
$
9

 
$
8

 
$
21

With a Related Allowance
—

 
—

 
—

 
—

 
$
—

Cash Basis Income:
 
 
 
 
 
 
 
 
 
With No Related Allowance
$
—

 
$
—

 
$
—

 
$
—

 
$
—

With a Related Allowance
—

 
—

 
—

 
—

 
$
—



At December 31, 2015 and December 31, 2014, all impaired loans were considered to be collateral dependent and were therefore evaluated for impairment based on the fair value of collateral less estimated cost to sell. Interest income recognized in the table above, represents income earned after the loans became impaired and includes restructured loans in compliance with their modified terms and nonaccrual loans where we have recognized interest income on a cash basis.

Loans Modified in Trouble Debt Restructurings

The following table presents information on loans modified in trouble debt restructurings during the periods indicated:
Loans Modified in Trouble Debt Restructurings During the Period
 
 
 
Commercial
 
 
 
 
 
 
 
Commercial
 
Real Estate
 
Consumer
 
Residential
 
Total
For the Year Ended:
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
Number of Loans
—

 
1

 
4

 
—

 
5

Pre-Modification Outstanding Recorded Investment
$
—

 
$
883

 
$
51

 
$
—

 
$
934

Post-Modification Outstanding Recorded Investment
$
—

 
$
883

 
$
51

 
$
—

 
$
934

Subsequent Default, Number of Contracts
—

 
—

 
—

 
—

 
—

Subsequent Default, Recorded Investment
—

 
—

 
—

 
—

 
—

Commitments to lend additional funds to modified loans
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
December 31, 2014
 
 
 
 
 
 
 
 
 
Number of Loans
—

 
—

 
4

 
1

 
5

Pre-Modification Outstanding Recorded Investment
$
—

 
$
—

 
$
36

 
$
574

 
$
610

Post-Modification Outstanding Recorded Investment
$
—

 
$
—

 
$
36

 
$
574

 
$
610

Subsequent Default, Number of Contracts
—

 
—

 
—

 
—

 
—

Subsequent Default, Recorded Investment
—

 
—

 
—

 
—

 
—

Commitments to lend additional funds to modified loans
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
 
 
 
 
 
 
 
 
Number of Loans
1

 
—

 
9

 
—

 
10

Pre-Modification Outstanding Recorded Investment
$
169

 
$
—

 
$
88

 
$
—

 
$
257

Post-Modification Outstanding Recorded Investment
$
200

 
$
—

 
$
88

 
$
—

 
$
288

Subsequent Default, Number of Contracts
—

 
—

 
—

 
—

 
—

Subsequent Default, Recorded Investment
—

 
—

 
—

 
—

 
—

Commitments to lend additional funds to modified loans
—

 
—

 
—

 
—

 
—



In general, loans requiring modification are restructured to accommodate the projected cash-flows of the borrower. Such modifications may involve a reduction of the interest rate, a significant deferral of payments or forgiveness of a portion of the outstanding principal balance. As indicated in the table above, no loans modified during the preceding twelve months subsequently defaulted as of December 31, 2015 or December 31, 2014.

Schedule of Supplemental Loan Information
    
 
2015
 
2014
Supplemental Information:
 
 
 
Unamortized deferred loan origination costs, net of deferred loan
  origination fees, included in the above balances
$
3,268

 
$
2,771

Overdrawn deposit accounts, included in the above balances
477

 
973

Pledged loans secured by one-to-four family residential mortgages
  under a blanket collateral agreement to secure borrowings from
  the Federal Home Loan Bank of New York
396,956

 
313,355

Residential real estate loans serviced for Freddie Mac, not included
   in the balances above
153,795

 
158,598

Loans held for sale at period-end, included in the above balances
298

 
398

Loans to Related Parties:  
 
 
 
Balance at beginning of year
$
6,003

 
$
7,769

Adjustment due to change in composition of related parties
2,610

 
—

New loans and renewals, during the year
2,770

 
694

Repayments, during the year
(1,788
)
 
(2,460
)
Balance at end of year
$
9,595

 
$
6,003