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Loans and Allowance for Loan Losses | 3 Months Ended
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Mar. 31, 2016
Receivables [Abstract] |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 5. Loans and Allowance for Loan Losses Portfolio Segmentation: At March 31, 2016 and December 31, 2015, loans are summarized as follows (in thousands):
|  | March 31, 2016 |  | December 31, 2015 |
|  | PCI Loans |  | All Other Loans |  | Total |  | PCI Loans |  | All Other Loans |  | Total |
Commercial real estate |  | $ | 17,106 |  | $ | 354,857 |  | $ | 371,963 |  | $ | 20,050 |  | $ | 349,727 |  | $ | 369,777 |
Consumer real estate |  |  | 12,559 |  |  | 156,859 |  |  | 169,418 |  |  | 12,764 |  |  | 148,930 |  |  | 161,694 |
Construction and land development |  |  | 2,612 |  |  | 107,976 |  |  | 110,588 |  |  | 2,695 |  |  | 102,783 |  |  | 105,478 |
Commercial and industrial |  |  | 2,013 |  |  | 80,438 |  |  | 82,451 |  |  | 2,768 |  |  | 82,183 |  |  | 84,951 |
Consumer and other |  |  | - |  |  | 6,520 |  |  | 6,520 |  |  | - |  |  | 5,815 |  |  | 5,815 |
Total loans |  |  | 34,290 |  |  | 706,650 |  |  | 740,940 |  |  | 38,277 |  |  | 689,438 |  |  | 727,715 |
Less: Allowance for loan losses |  |  | (29) |  |  | (4,499) |  |  | (4,528) |  |  | - |  |  | (4,354) |  |  | (4,354) |
Loans, net |  | $ | 34,261 |  | $ | 702,151 |  | $ | 736,412 |  | $ | 38,277 |  | $ | 685,084 |  | $ | 723,361 |
For purposes of the disclosures required pursuant to the adoption of ASC 310, the loan portfolio was disaggregated into segments. A portfolio segment is defined as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. There are five loan portfolio segments that include commercial real estate, consumer real estate, construction and land development, commercial and industrial, and consumer and other. The following describe risk characteristics relevant to each of the portfolio segments: Commercial Real Estate:Commercial real estate loans include owner-occupied commercial real estate loans and loans secured by income-producing properties. Owner-occupied commercial real estate loans to operating businesses are long-term financing of land and buildings. These loans are repaid by cash flow generated from the business operation. Real estate loans for income-producing properties such as apartment buildings, office and industrial buildings, and retail shopping centers are repaid from rent income derived from the properties. Loans within this portfolio segment are particularly sensitive to the valuation of real estate. Consumer Real Estate:Consumer real estate loans include real estate loans secured by first liens, second liens, or open end real estate loans, such as home equity lines. These are repaid by various means such as a borrower's income, sale of the property, or rental income derived from the property. One to four family first mortgage loans are repaid by various means such as a borrower's income, sale of the property, or rental income derived from the property. Loans within this portfolio segment are particularly sensitive to the valuation of real estate. Construction and Land Development:Loans for real estate construction and development are repaid through cash flow related to the operations, sale or refinance of the underlying property. This portfolio segment includes extensions of credit to real estate developers or investors where repayment is dependent on the sale of the real estate or income generated from the real estate collateral. Loans within this portfolio segment are particularly sensitive to the valuation of real estate. Commercial and Industrial:The commercial and industrial loan portfolio segment includes commercial, financial, and agricultural loans. These loans include those loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchases, or expansion projects. Loans are repaid by business cash flows. Collection risk in this portfolio is driven by the creditworthiness of the underlying borrower, particularly cash flows from the customers' business operations. Consumer and Other:The consumer loan portfolio segment includes direct consumer installment loans, overdrafts and other revolving credit loans, and educational loans. Loans in this portfolio are sensitive to unemployment and other key consumer economic measures. Credit Risk Management: The Company employs a credit risk management process with defined policies, accountability and routine reporting to manage credit risk in the loan portfolio segments. Credit risk management is guided by credit policies that provide for a consistent and prudent approach to underwriting and approvals of credits. Within the Credit Policy, procedures exist that elevate the approval requirements as credits become larger and more complex. All loans are individually underwritten, risk-rated, approved, and monitored. Responsibility and accountability for adherence to underwriting policies and accurate risk ratings lies in each portfolio segment. For the consumer real estate and consumer and other portfolio segments, the risk management process focuses on managing customers who become delinquent in their payments. For the other portfolio segments, the risk management process focuses on underwriting new business and, on an ongoing basis, monitoring the credit of the portfolios, including a third party review of the largest credits on an annual basis or more frequently as needed. To ensure problem credits are identified on a timely basis, several specific portfolio reviews occur periodically to assess the larger adversely rated credits for proper risk rating and accrual status. Credit quality and trends in the loan portfolio segments are measured and monitored regularly. Detailed reports, by product, collateral, accrual status, etc., are reviewed by the Senior Credit Officer and the Directors Loan Committee. The allowance for loan losses is a valuation reserve allowance established through provisions for loan losses charged against income. The allowance for loan losses, which is evaluated quarterly, is maintained at a level that management deems sufficient to absorb probable losses inherent in the loan portfolio. Loans deemed to be uncollectible are charged against the allowance for loan losses, while recoveries of previously charged-off amounts are credited to the allowance for loan losses. The allowance for loan losses is comprised of specific valuation allowances for loans evaluated individually for impairment and general allocations for pools of homogeneous loans with similar risk characteristics and trends. The allowance for loan losses related to specific loans is based on management's estimate of potential losses on impaired loans as determined by (1) the present value of expected future cash flows; (2) the fair value of collateral if the loan is determined to be collateral dependent or (3) the loan's observable market price. The Company's homogeneous loan pools include commercial real estate loans, consumer real estate loans, construction and land development loans, commercial and industrial loans, and consumer and other loans. The general allocations to these loan pools are based on the historical loss rates for specific loan types and the internal risk grade, if applicable, adjusted for both internal and external qualitative risk factors. The qualitative factors considered by management include, among other factors, (1) changes in local and national economic conditions; (2) changes in asset quality; (3) changes in loan portfolio volume; (4) the composition and concentrations of credit; (5) the impact of competition on loan structuring and pricing; (6) the impact of interest rate changes on portfolio risk and (7) effectiveness of the Company's loan policies, procedures and internal controls. The total allowance established for each homogeneous loan pool represents the product of the historical loss ratio adjusted for qualitative factors and the total dollar amount of the loans in the pool. The composition of loans by loan classification for impaired and performing loan status at March 31, 2016 and December 31, 2015, is summarized in the tables below (amounts in thousands):
|  | March 31, 2016 |
|  |  |  |  |  |  |  | Construction |  | Commercial |  |  |  |  |  |  |
|  | Commercial |  | Consumer |  | and Land |  | and |  | Consumer |  |  |  |
|  | Real Estate |  | Real Estate |  | Development |  | Industrial |  | and Other |  | Total |
Performing loans |  | $ | 352,906 |  | $ | 153,175 |  | $ | 106,906 |  | $ | 80,005 |  | $ | 6,520 |  | $ | 699,512 |
Impaired loans |  |  | 1,951 |  |  | 3,684 |  |  | 1,070 |  |  | 433 |  |  | - |  |  | 7,138 |
|  |  | 354,857 |  |  | 156,859 |  |  | 107,976 |  |  | 80,438 |  |  | 6,520 |  |  | 706,650 |
PCI loans |  |  | 17,106 |  |  | 12,559 |  |  | 2,612 |  |  | 2,013 |  |  | - |  |  | 34,290 |
Total |  | $ | 371,963 |  | $ | 169,418 |  | $ | 110,588 |  | $ | 82,451 |  | $ | 6,520 |  | $ | 740,940 |
|  | December 31, 2015 |
|  |  |  |  |  |  |  | Construction |  | Commercial |  |  |  |  |  |  |
|  | Commercial |  | Consumer |  | and Land |  | and |  | Consumer |  |  |  |
|  | Real Estate |  | Real Estate |  | Development |  | Industrial |  | and Other |  | Total |
Performing loans |  | $ | 347,775 |  | $ | 145,289 |  | $ | 101,751 |  | $ | 81,715 |  | $ | 5,815 |  | $ | 682,345 |
Impaired loans |  |  | 1,952 |  |  | 3,641 |  |  | 1,032 |  |  | 468 |  |  | - |  |  | 7,093 |
|  |  | 349,727 |  |  | 148,930 |  |  | 102,783 |  |  | 82,183 |  |  | 5,815 |  |  | 689,438 |
PCI loans |  |  | 20,050 |  |  | 12,764 |  |  | 2,695 |  |  | 2,768 |  |  | - |  |  | 38,277 |
Total loans |  | $ | 369,777 |  | $ | 161,694 |  | $ | 105,478 |  | $ | 84,951 |  | $ | 5,815 |  | $ | 727,715 |
The following tables show the allowance for loan losses allocation by loan classification for impaired, PCI, and performing loans as of March 31, 2016 and December 31, 2015 (amounts in thousands):
|  | March 31, 2016 |
|  | Commercial |  | Consumer |  | Construction and Land |  | Commercial and |  | Consumer and |  |  |  |
|  | Real Estate |  | Real Estate |  | Development |  | Industrial |  | Other |  | Total |
Performing loans |  | $ | 1,992 |  | $ | 1,049 |  | $ | 693 |  | $ | 507 |  | $ | 33 |  | $ | 4,274 |
PCI loans |  |  | 20 |  |  | 9 |  |  | - |  |  | - |  |  | - |  |  | 29 |
Impaired loans |  |  | - |  |  | - |  |  | - |  |  | 225 |  |  | - |  |  | 225 |
Total |  | $ | 2,012 |  | $ | 1,058 |  | $ | 693 |  | $ | 732 |  | $ | 33 |  | $ | 4,528 |
|  | December 31, 2015 |
|  | Commercial |  | Consumer |  | Construction and Land |  | Commercial and |  | Consumer and |  |  |  |
|  | Real Estate |  | Real Estate |  | Development |  | Industrial |  | Other |  | Total |
Performing loans |  | $ | 1,906 |  | $ | 1,015 |  | $ | 627 |  | $ | 519 |  | $ | 29 |  | $ | 4,096 |
Impaired loans |  |  | - |  |  | - |  |  | - |  |  | 258 |  |  | - |  |  | 258 |
Total |  | $ | 1,906 |  | $ | 1,015 |  | $ | 627 |  | $ | 777 |  | $ | 29 |  | $ | 4,354 |
There was no allowance for PCI loans at December 31, 2015. The following tables detail the changes in the allowance for loan losses for the three month period ending March 31, 2016 and year ending December 31, 2015, by loan classification (amounts in thousands):
|  | March 31, 2016 |
|  | Commercial |  | Consumer Real |  | Construction and Land |  | Commercial and |  | Consumer |  |  |  |
|  | Real Estate |  | Estate |  | Development |  | Industrial |  | and Other |  | Total |
Beginning balance |  | $ | 1,906 |  | $ | 1,015 |  | $ | 627 |  | $ | 777 |  | $ | 29 |  | $ | 4,354 |
Loans charged off |  |  | - |  |  | - |  |  | - |  |  | - |  |  | (33) |  |  | (33) |
Recoveries of loans charged off |  |  | 15 |  |  | 18 |  |  | 3 |  |  | 17 |  |  | 16 |  |  | 69 |
Provision (reallocation) charged to operating expense |  |  | 91 |  |  | 25 |  |  | 63 |  |  | (62) |  |  | 21 |  |  | 138 |
Ending balance |  | $ | 2,012 |  | $ | 1,058 |  | $ | 693 |  | $ | 732 |  | $ | 33 |  | $ | 4,528 |
|  | December 31, 2015 |
|  |  |  |  | Consumer |  | Construction |  | Commercial |  |  |  |  |  |  |
|  | Commercial Real Estate |  | Real Estate |  | and Land Development |  | and Industrial |  | Consumer and Other |  | Total |
Beginning balance |  | $ | 1,734 |  | $ | 906 |  | $ | 690 |  | $ | 524 |  | $ | 26 |  | $ | 3,880 |
Loans charged off |  |  | (95) |  |  | (247) |  |  | (50) |  |  | - |  |  | (114) |  |  | (506) |
Recoveries of charge-offs |  |  | - |  |  | - |  |  | 26 |  |  | 19 |  |  | 12 |  |  | 57 |
Provision (reallocation) charged to operating expense |  |  | 267 |  |  | 356 |  |  | (39) |  |  | 234 |  |  | 105 |  |  | 923 |
Ending balance |  | $ | 1,906 |  | $ | 1,015 |  | $ | 627 |  | $ | 777 |  | $ | 29 |  | $ | 4,354 |
A description of the general characteristics of the risk grades used by the Company is as follows: Pass: Loans in this risk category involve borrowers of acceptable-to-strong credit quality and risk who have the apparent ability to satisfy their loan obligations. Loans in this risk grade would possess sufficient mitigating factors, such as adequate collateral or strong guarantors possessing the capacity to repay the debt if required, for any weakness that may exist. Special Mention:Loans in this risk grade are the equivalent of the regulatory definition of "Other Assets Especially Mentioned" classification. Loans in this category possess some credit deficiency or potential weakness, which requires a high level of management attention. Potential weaknesses include declining trends in operating earnings and cash flows and /or reliance on the secondary source of repayment. If left uncorrected, these potential weaknesses may result in noticeable deterioration of the repayment prospects for the asset or in the Company's credit position. Substandard:Loans in this risk grade are inadequately protected by the borrower's current financial condition and payment capability or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the orderly repayment of debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful: Loans in this risk grade have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of current existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, its classification as an estimated loss is deferred until its more exact status may be determined. Uncollectible:Loans in this risk grade are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean the loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Charge-offs against the allowance for loan losses are taken in the period in which the loan becomes uncollectible. Consequently, the Company typically does not maintain a recorded investment in loans within this category. The following tables outline the amount of each loan classification and the amount categorized into each risk rating as of March 31, 2016 and December 31, 2015 (amounts in thousands): Non PCI Loans
|  | March 31, 2016 |
|  |  |  |  |  |  |  | Construction |  | Commercial |  |  |  |  |  |
|  | Commercial |  | Consumer |  | and Land |  | and |  | Consumer |  |  |  |
|  | Real Estate |  | Real Estate |  | Development |  | Industrial |  | and Other |  | Total |
Pass |  | $ | 354,162 |  | $ | 154,525 |  | $ | 106,285 |  | $ | 79,992 |  | $ | 6,520 |  | $ | 701,484 |
Watch |  |  | 182 |  |  | 385 |  |  | 93 |  |  | - |  |  | - |  |  | 660 |
Special mention |  |  | 387 |  |  | - |  |  | 528 |  |  | 13 |  |  | - |  |  | 928 |
Substandard |  |  | 126 |  |  | 1,949 |  |  | 1,070 |  |  | 433 |  |  | - |  |  | 3,578 |
Doubtful |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Total |  | $ | 354,857 |  | $ | 156,859 |  | $ | 107,976 |  | $ | 80,438 |  | $ | 6,520 |  | $ | 706,650 |
PCI Loans
|  | March 31, 2016 |
|  |  |  |  |  |  |  | Construction |  | Commercial |  |  |  |  |  |  |
|  | Commercial |  | Consumer |  | and Land |  | and |  | Consumer |  |  |  |
|  | Real Estate |  | Real Estate |  | Development |  | Industrial |  | and Other |  | Total |
Pass |  | $ | 15,205 |  | $ | 9,673 |  | $ | 1,722 |  | $ | 1,901 |  | $ | - |  | $ | 28,501 |
Watch |  |  | 783 |  |  | 1,920 |  |  | 670 |  |  | 46 |  |  | - |  |  | 3,419 |
Special mention |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Substandard |  |  | 1,118 |  |  | 966 |  |  | 220 |  |  | 66 |  |  | - |  |  | 2,370 |
Doubtful |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Total |  | $ | 17,106 |  | $ | 12,559 |  | $ | 2,612 |  | $ | 2,013 |  | $ | - |  | $ | 34,290 |
Total loans |  | $ | 371,963 |  | $ | 169,418 |  | $ | 110,588 |  | $ | 82,451 |  | $ | 6,520 |  | $ | 740,940 |
Non PCI Loans
|  | December 31, 2015 |
|  |  |  |  |  |  |  | Construction |  | Commercial |  |  |  |  |  |  |
|  | Commercial |  | Consumer |  | and Land |  | and |  | Consumer |  |  |  |
|  | Real Estate |  | Real Estate |  | Development |  | Industrial |  | and Other |  | Total |
Pass |  | $ | 349,030 |  | $ | 146,645 |  | $ | 101,751 |  | $ | 81,683 |  | $ | 5,815 |  | $ | 684,924 |
Watch |  |  | 184 |  |  | 327 |  |  | - |  |  | - |  |  | - |  |  | 511 |
Special mention |  |  | 387 |  |  | - |  |  | - |  |  | 32 |  |  | - |  |  | 419 |
Substandard |  |  | 126 |  |  | 1,958 |  |  | 1,032 |  |  | 468 |  |  | - |  |  | 3,584 |
Doubtful |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Total |  | $ | 349,727 |  | $ | 148,930 |  | $ | 102,783 |  | $ | 82,183 |  | $ | 5,815 |  | $ | 689,438 |
PCI Loans
|  | December 31, 2015 |
|  |  |  |  |  |  |  | Construction |  | Commercial |  |  |  |  |  |  |
|  | Commercial |  | Consumer |  | and Land |  | and |  | Consumer |  |  |  |
|  | Real Estate |  | Real Estate |  | Development |  | Industrial |  | and Other |  | Total |
Pass |  | $ | 17,127 |  | $ | 11,635 |  | $ | 1,947 |  | $ | 2,458 |  | $ | - |  | $ | 33,167 |
Watch |  |  | - |  |  | 260 |  |  | - |  |  | - |  |  | - |  |  | 260 |
Special mention |  |  | 1,975 |  |  | - |  |  | 526 |  |  | 221 |  |  | - |  |  | 2,722 |
Substandard |  |  | 948 |  |  | 869 |  |  | 222 |  |  | 89 |  |  | - |  |  | 2,128 |
Doubtful |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Total |  | $ | 20,050 |  | $ | 12,764 |  | $ | 2,695 |  | $ | 2,768 |  | $ | - |  | $ | 38,277 |
Total loans |  | $ | 369,777 |  | $ | 161,694 |  | $ | 105,478 |  | $ | 84,951 |  | $ | 5,815 |  | $ | 727,715 |
Past Due Loans: A loan is considered past due if any required principal and interest payments have not been received as of the date such payments were required to be made under the terms of the loan agreement. Generally, management places a loan on nonaccrual when there is a clear indicator that the borrower’s cash flow may not be sufficient to meet payments as they become due, which is generally when a loan is 90 days past due. The following tables present the aging of the recorded investment in loans and leases as of March 31, 2016 and December 31, 2015 (amounts in thousands):
|  | March 31, 2016 |
|  | 30-89 Days |  | Past Due 90 |  |  |  |  | Total |  |  |  |  |  |  |  |  |  |
|  | Past Due and |  | Days or More |  |  |  |  | Past Due |  |  |  |  | Current |  | Total |
|  | Accruing |  | and Accruing |  | Nonaccrual |  | and NonAccrual |  | PCI Loans |  | Loans |  | Loans |
Commercial real estate |  | $ | 148 |  | $ | - |  | $ | 387 |  | $ | 535 |  | $ | 17,106 |  | $ | 354,322 |  | $ | 371,963 |
Consumer real estate |  |  | 118 |  |  | 107 |  |  | 1,345 |  |  | 1,570 |  |  | 12,559 |  |  | 155,289 |  |  | 169,418 |
Construction and land development |  |  | 1,075 |  |  | - |  |  | 522 |  |  | 1,597 |  |  | 2,612 |  |  | 106,379 |  |  | 110,588 |
Commercial and industrial |  |  | 30 |  |  | 44 |  |  | 385 |  |  | 459 |  |  | 2,013 |  |  | 79,979 |  |  | 82,451 |
Consumer and other |  |  | 13 |  |  | - |  |  | - |  |  | 13 |  |  | - |  |  | 6,507 |  |  | 6,520 |
Total |  | $ | 1,384 |  | $ | 151 |  | $ | 2,639 |  | $ | 4,174 |  | $ | 34,290 |  | $ | 702,476 |  | $ | 740,940 |
|  | December 31, 2015 |
|  | 30-89 Days |  | Past Due 90 |  |  |  |  | Total |  |  |  |  |  |  |  |  |  |
|  | Past Due and |  | Days or More |  |  |  |  | Past Due |  | PCI |  | Current |  | Total |
|  | Accruing |  | and Accruing |  | Nonaccrual |  | and NonAccrual |  | Loans |  | Loans |  | Loans |
Commercial real estate |  | $ | 471 |  | $ | 258 |  | $ | - |  | $ | 729 |  | $ | 20,050 |  | $ | 348,998 |  | $ | 369,777 |
Consumer real estate |  |  | 581 |  |  | 232 |  |  | 1,351 |  |  | 2,164 |  |  | 12,764 |  |  | 146,766 |  |  | 161,694 |
Construction and land development |  |  | 137 |  |  | - |  |  | 483 |  |  | 620 |  |  | 2,695 |  |  | 102,163 |  |  | 105,478 |
Commercial and industrial |  |  | 207 |  |  | 12 |  |  | 418 |  |  | 637 |  |  | 2,768 |  |  | 81,546 |  |  | 84,951 |
Consumer and other |  |  | 12 |  |  | - |  |  | - |  |  | 12 |  |  | - |  |  | 5,803 |  |  | 5,815 |
Total |  | $ | 1,408 |  | $ | 502 |  | $ | 2,252 |  | $ | 4,162 |  | $ | 38,277 |  | $ | 685,276 |  | $ | 727,715 |
Impaired Loans: The following is an analysis of the impaired loan portfolio, excluding PCI loans, detailing the related allowance recorded as of March 31, 2016 and December 31, 2015 (amounts in thousands):
|  |  |  |  |  |  |  |  |  |  | For the three months |
|  | At March 31, 2016 |  | March 31, 2016 |
|  |  |  |  | Unpaid |  |  |  |  | Average |  | Interest |
|  | Recorded |  | Principal |  | Related |  | Recorded |  | Income |
|  | Investment |  | Balance |  | Allowance |  | Investment |  | Recognized |
Impaired loans without a valuation allowance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  | $ | 1,951 |  | $ | 1,951 |  | $ | - |  | $ | 1,952 |  | $ | 41 |
Consumer real estate |  |  | 3,684 |  |  | 4,396 |  |  | - |  |  | 3,663 |  |  | 26 |
Construction and land development |  |  | 1,070 |  |  | 1,070 |  |  | - |  |  | 1,052 |  |  | 3 |
Commercial and industrial |  |  | 48 |  |  | 48 |  |  | - |  |  | 49 |  |  | 1 |
Consumer and other |  |  | - |  |  | - |  |  | - |  |  |  |  |  | - |
|  |  | 6,753 |  |  | 7,465 |  |  | - |  |  | 6,716 |  |  | 71 |
Impaired loans with a valuation allowance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Consumer real estate |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Construction and land development |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Commercial and industrial |  |  | 385 |  |  | 418 |  |  | 225 |  |  | 402 |  |  | - |
Consumer and other |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
|  |  | 385 |  |  | 418 |  |  | 225 |  |  | 402 |  |  | - |
Total impaired loans |  | $ | 7,138 |  | $ | 7,883 |  | $ | 225 |  | $ | 7,118 |  | $ | 71 |
|  |  |  |  |  |  |  |  |  |  | For the year ended |
|  | At December 31, 2015 |  | December 31, 2015 |
|  |  |  |  | Unpaid |  |  |  |  | Average |  | Interest |
|  | Recorded |  | Principal |  | Related |  | Recorded |  | Income |
|  | Investment |  | Balance |  | Allowance |  | Investment |  | Recognized |
Impaired loans without a valuation allowance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  | $ | 1,952 |  | $ | 1,952 |  | $ | - |  | $ | 1,898 |  | $ | 73 |
Consumer real estate |  |  | 3,641 |  |  | 4,341 |  |  | - |  |  | 4,003 |  |  | 81 |
Construction and land development |  |  | 1,033 |  |  | 1,033 |  |  | - |  |  | 1,044 |  |  | 26 |
Commercial and industrial |  |  | 49 |  |  | 49 |  |  | - |  |  | 54 |  |  | 3 |
Consumer and other |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
|  |  | 6,675 |  |  | 7,375 |  |  | - |  |  | 6,999 |  |  | 183 |
Impaired loans with a valuation allowance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Consumer real estate |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Construction and land development |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Commercial and industrial |  |  | 418 |  |  | 418 |  |  | 258 |  |  | 448 |  |  | - |
Consumer and other |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
|  |  | 418 |  |  | 418 |  |  | 258 |  |  | 448 |  |  | - |
Total impaired loans |  | $ | 7,093 |  | $ | 7,793 |  | $ | 258 |  | $ | 7,447 |  | $ | 183 |
Troubled Debt Restructurings: At March 31, 2016 and December 31, 2015, impaired loans included loans that were classified as Troubled Debt Restructurings ("TDRs"). The restructuring of a loan is considered a TDR if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession. In assessing whether or not a borrower is experiencing financial difficulties, the Company considers information currently available regarding the financial condition of the borrower. This information includes, but is not limited to, whether (i) the debtor is currently in payment default on any of its debt; (ii) a payment default is probable in the foreseeable future without the modification; (iii) the debtor has declared or is in the process of declaring bankruptcy; and (iv) the debtor's projected cash flow is sufficient to satisfy contractual payments due under the original terms of the loan without a modification. The Company considers all aspects of the modification to loan terms to determine whether or not a concession has been granted to the borrower. Key factors considered by the Company include the debtor's ability to access funds at a market rate for debt with similar risk characteristics, the significance of the modification relative to unpaid principal balance or collateral value of the debt, and the significance of a delay in the timing of payments relative to the original contractual terms of the loan. The most common concessions granted by the Company generally include one or more modifications to the terms of the debt, such as (i) a reduction in the interest rate for the remaining life of the debt; (ii) an extension of the maturity date at an interest rate lower than the current market rate for new debt with similar risk; (iii) a temporary period of interest-only payments; and (iv) a reduction in the contractual payment amount for either a short period or remaining term of the loan. As of March 31, 2016 and December 31, 2015, management had approximately, $5,843,000 and $4,990,000, respectively, in loans that met the criteria for restructured, which included approximately $2,166,000 and $1,297,000, respectively, of loans on nonaccrual. A loan is placed back on accrual status when both principal and interest are current and it is probable that management will be able to collect all amounts due (both principal and interest) according to the terms of the loan agreement. The following table presents a summary of loans that were modified as troubled debt restructurings during the three month period ended March 31, 2016 (amounts in thousands):
|  |  |  |  | Pre-Modification |  | Post-Modification |
|  |  |  |  | Outstanding Recorded |  | Outstanding Recorded |
March 31, 2016 |  | Number of Contracts |  | Investment |  | Investment |
Construction and land development |  |  | 1 |  | $ | 483 |  | $ | 483 |
Commercial and industrial |  |  | 1 |  |  | 385 |  |  | 385 |
There were no loans modified as troubled debt restructurings during the year ended December 31, 2015. There were no loans that were modified as troubled debt restructurings during the past twelve months and for which there was a subsequent payment default. Purchased Credit Impaired Loans: The Company has acquired loans which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans as of March 31, 2016 is as follows:
Commercial real estate |  | $ | 20,053 |
Consumer real estate |  |  | 16,487 |
Construction and land development |  |  | 3,463 |
Commercial and industrial |  |  | 3,085 |
Consumer and other |  |  | - |
Total loans |  | $ | 43,088 |
Less remaining purchase discount |  |  | (8,798) |
|  |  | 34,290 |
Less: Allowance for loan losses |  |  | (29) |
Carrying amount, net of allowance |  | $ | 34,261 |
Activity related to the accretable portion of the purchase discount on loans acquired with deteriorated credit quality is as follows for the three months period ended March 31, 2016 and 2015:
|  | Three Months Ended March 31, 2016 |  |  | Three Months Ended March 31, 2015 |
Accretable yield, beginning of period |  | $ | 10,216 |  | $ | 3,816 |
Additions |  |  | - |  |  | - |
Accretion income |  |  | (628) |  |  | (393) |
Reclassification to nonaccretable |  |  | (41) |  |  | - |
Other changes, net |  |  | 60 |  |  | 107 |
Accretable yield |  | $ | 9,606 |  | $ | 3,530 |
The Company increased the allowance for loan losses on purchase credit impaired loans by $29 thousand during the three month period ended March 31, 2016 but had no increase during the period ended March 31, 2015.

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=49124121&loc=d3e5066-111524 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=49124121&loc=d3e5162-111524 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(k)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=49124121&loc=d3e5074-111524 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Article 9 + Details
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