Note 4 – Allowance for Loan Losses

Changes in the allowance for loan losses by segment of loans based on method of impairment for three months ending March 31, 2015, were as follows:


Allowance for loan losses:			Real Estate		Real Estate		Real Estate
	Commercial		Commercial 1		Construction		Residential		Consumer		Unallocated		Total
Three months ended March 31, 2015
Beginning balance	$	1,644	$	12,577	$	1,475	$	1,981	$	1,454	$	2,506	$	21,637
Charge-offs		32		495		1		618		118		-		1,264
Recoveries		141		330		5		224		108		-		808
(Release) provision		(241)		1,621		(207)		330		(27)		(1,476)		-
Ending balance	$	1,512	$	14,033	$	1,272	$	1,917	$	1,417	$	1,030	$	21,181

Ending balance: Individually evaluated for impairment	$	-	$	1,580	$	60	$	144	$	-	$	-	$	1,784
Ending balance: Collectively evaluated for impairment	$	1,512	$	12,453	$	1,212	$	1,773	$	1,417	$	1,030	$	19,397

Loans:
Ending balance	$	122,892	$	608,267	$	39,430	$	363,967	$	3,495	$	13,018	$	1,151,069
Ending balance: Individually evaluated for impairment	$	1,897	$	11,867	$	1,821	$	16,341	$	-	$	-	$	31,926
Ending balance: Collectively evaluated for impairment	$	120,995	$	596,400	$	37,609	$	347,626	$	3,495	$	13,018	$	1,119,143

1 As of March 31, 2015, this segment consisted of performing loans that included a higher risk pool of loans rated as substandard that totaled $5.4 million. The amount of general allocation that was estimated for that portion of these performing substandard rated loans was $1.1 million at March 31, 2015.

Changes in the allowance for loan losses by segment of loans based on method of impairment for three months ending March 31, 2014, were as follows:


Allowance for loan losses:			Real Estate		Real Estate		Real Estate
	Commercial		Commercial 1		Construction		Residential		Consumer		Unallocated		Total
Three months ended March 31, 2014
Beginning balance	$	2,250	$	16,763	$	1,980	$	2,837	$	1,439	$	2,012	$	27,281
Charge-offs		4		329		68		849		110		-		1,360
Recoveries		15		141		37		250		112		-		555
(Release) provision		65		(2,509)		49		30		54		1,311		(1,000)
Ending balance	$	2,326	$	14,066	$	1,998	$	2,268	$	1,495	$	3,323	$	25,476

Ending balance: Individually evaluated for impairment	$	-	$	673	$	194	$	380	$	-	$	-	$	1,247
Ending balance: Collectively evaluated for impairment	$	2,326	$	13,393	$	1,804	$	1,888	$	1,495	$	3,323	$	24,229

Loans:
Ending balance	$	107,548	$	579,297	$	32,016	$	375,781	$	2,837	$	13,758	$	1,111,237
Ending balance: Individually evaluated for impairment	$	24	$	22,790	$	4,679	$	16,705	$	-	$	-	$	44,198
Ending balance: Collectively evaluated for impairment	$	107,524	$	556,507	$	27,337	$	359,076	$	2,837	$	13,758	$	1,067,039

1 As of March 31, 2014, this segment consisted of performing loans that included a higher risk pool of loans rated as substandard that totaled $5.6 million. The amount of general allocation that was estimated for that portion of these performing substandard rated loans was $412,000 at March 31, 2014.