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LOANS AND ALLOWANCE FOR LOAN LOSSES | 12 Months Ended
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Dec. 31, 2019
Receivables [Abstract] |
LOANS AND ALLOWANCE FOR LOAN LOSSES | NOTE 4 - LOANS AND ALLOWANCE FOR LOAN LOSSES The following table summarizes our loan portfolio by type of loan at December 31:
|  | 2019 |  |  | 2018 |
Commercial and industrial |  | $ | 279,583 |  |  | $ | 261,779 |
Real estate: |  |  |  |  |  |  |  |
Construction and development |  |  | 280,498 |  |  |  | 237,503 |
Commercial real estate |  |  | 567,360 |  |  |  | 582,519 |
Farmland |  |  | 57,476 |  |  |  | 67,845 |
1-4 family residential |  |  | 412,166 |  |  |  | 393,067 |
Multi-family residential |  |  | 37,379 |  |  |  | 38,386 |
Consumer |  |  | 53,245 |  |  |  | 54,777 |
Agricultural |  |  | 18,359 |  |  |  | 23,277 |
Overdrafts |  |  | 329 |  |  |  | 382 |
Total loans |  |  | 1,706,395 |  |  |  | 1,659,535 |
Net of: |  |  |  |  |  |  |  |
Deferred loan costs |  |  | 601 |  |  |  | 560 |
Allowance for loan losses |  |  | (16,202 | ) |  |  | (14,651 | )
Total net loans |  | $ | 1,690,794 |  |  | $ | 1,645,444 |
In 2018, the Company acquired overdrafts and recorded them as loans with a fair value and gross contractual fair value of $2 as part of Westbound. All loans acquired in 2018 were classified as acquired performing loans on the acquisition date. The Company has entered into transactions, at prevailing market rates and terms, with certain directors, executive officers, significant shareholders and their affiliates. Loans to such related parties at December 31, 2019 and 2018, totaled $33,663 and $56,199, respectively. Unfunded commitments to such related parties at December 31, 2019 totaled $13,846. Loans to principal officers, directors, and their affiliates during the year ended December 31, 2019, was as follows:
Beginning balance |  | $ | 56,199 |
New loans |  |  | 46,419 |
Effect of changes in composition of related parties |  |  | (17,516 | )
Repayments |  |  | (51,439 | )
Ending balance |  | $ | 33,663 |
The following table presents the activity in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method for the years ended December 31, 2019, 2018 and 2017:
For the Year Ended December 31, 2019 |  | Commercial and industrial |  |  | Construction and development |  |  | Commercial real estate |  |  | Farmland |  |  | 1-4 family residential |  |  | Multi-family residential |  |  | Consumer |  |  | Agricultural |  |  | Overdrafts |  |  | Total |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 1,751 |  |  | $ | 1,920 |  |  | $ | 6,025 |  |  | $ | 643 |  |  | $ | 2,868 |  |  | $ | 631 |  |  | $ | 565 |  |  | $ | 238 |  |  | $ | 10 |  |  | $ | 14,651 |
Provision for loan losses |  |  | (117 | ) |  |  | 458 |  |  |  | 827 |  |  |  | (73 | ) |  |  | 268 |  |  |  | (222 | ) |  |  | (2 | ) |  |  | (41 | ) |  |  | 152 |  |  |  | 1,250 |
Loans charged-off |  |  | (86 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (14 | ) |  |  | — |  |  |  | (72 | ) |  |  | (89 | ) |  |  | (192 | ) |  |  | (453 | )
Recoveries |  |  | 508 |  |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | 3 |  |  |  | — |  |  |  | 111 |  |  |  | 89 |  |  |  | 42 |  |  |  | 754 |
Ending balance |  | $ | 2,056 |  |  | $ | 2,378 |  |  | $ | 6,853 |  |  | $ | 570 |  |  | $ | 3,125 |  |  | $ | 409 |  |  | $ | 602 |  |  | $ | 197 |  |  | $ | 12 |  |  | $ | 16,202 |
Allowance ending balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | — |  |  | $ | — |  |  | $ | 1,587 |  |  | $ | 62 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,649 |
Collectively evaluated for impairment |  |  | 2,008 |  |  |  | 2,322 |  |  |  | 5,486 |  |  |  | 495 |  |  |  | 3,050 |  |  |  | 400 |  |  |  | 588 |  |  |  | 192 |  |  |  | 12 |  |  |  | 14,553 |
Ending balance |  | $ | 2,008 |  |  | $ | 2,322 |  |  | $ | 7,073 |  |  | $ | 557 |  |  | $ | 3,050 |  |  | $ | 400 |  |  | $ | 588 |  |  | $ | 192 |  |  | $ | 12 |  |  | $ | 16,202 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 289 |  |  | $ | 1,212 |  |  | $ | 17,483 |  |  | $ | 133 |  |  | $ | 2,498 |  |  | $ | — |  |  | $ | — |  |  | $ | 62 |  |  | $ | — |  |  | $ | 21,677 |
Collectively evaluated for impairment |  |  | 279,294 |  |  | $ | 279,286 |  |  |  | 549,877 |  |  |  | 57,343 |  |  |  | 409,668 |  |  |  | 37,379 |  |  |  | 53,245 |  |  |  | 18,297 |  |  |  | 329 |  |  |  | 1,684,718 |
Ending balance |  | $ | 279,583 |  |  | $ | 280,498 |  |  | $ | 567,360 |  |  | $ | 57,476 |  |  | $ | 412,166 |  |  | $ | 37,379 |  |  | $ | 53,245 |  |  | $ | 18,359 |  |  | $ | 329 |  |  | $ | 1,706,395 |
For the Year Ended December 31, 2018 |  | Commercial and industrial |  |  | Construction and development |  |  | Commercial real estate |  |  | Farmland |  |  | 1-4 family residential |  |  | Multi-family residential |  |  | Consumer |  |  | Agricultural |  |  | Overdrafts |  |  | Total |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 1,581 |  |  | $ | 1,724 |  |  | $ | 4,585 |  |  | $ | 523 |  |  | $ | 3,022 |  |  | $ | 629 |  |  | $ | 602 |  |  | $ | 187 |  |  | $ | 6 |  |  | $ | 12,859 |
Provision for loan losses |  |  | 426 |  |  |  | 196 |  |  |  | 1,472 |  |  |  | 120 |  |  |  | (196 | ) |  |  | 2 |  |  |  | 127 |  |  |  | (12 | ) |  |  | 115 |  |  |  | 2,250 |
Loans charged-off |  |  | (367 | ) |  |  | — |  |  |  | (33 | ) |  |  | — |  |  |  | (93 | ) |  |  | — |  |  |  | (254 | ) |  |  | (2 | ) |  |  | (169 | ) |  |  | (918 | )
Recoveries |  |  | 111 |  |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | 135 |  |  |  | — |  |  |  | 90 |  |  |  | 65 |  |  |  | 58 |  |  |  | 460 |
Ending balance |  | $ | 1,751 |  |  | $ | 1,920 |  |  | $ | 6,025 |  |  | $ | 643 |  |  | $ | 2,868 |  |  | $ | 631 |  |  | $ | 565 |  |  | $ | 238 |  |  | $ | 10 |  |  | $ | 14,651 |
Allowance ending balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 64 |  |  | $ | 4 |  |  | $ | 341 |  |  | $ | 78 |  |  | $ | 6 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 493 |
Collectively evaluated for impairment |  |  | 1,687 |  |  |  | 1,916 |  |  |  | 5,684 |  |  |  | 565 |  |  |  | 2,862 |  |  |  | 631 |  |  |  | 565 |  |  |  | 238 |  |  |  | 10 |  |  |  | 14,158 |
Ending balance |  | $ | 1,751 |  |  | $ | 1,920 |  |  | $ | 6,025 |  |  | $ | 643 |  |  | $ | 2,868 |  |  | $ | 631 |  |  | $ | 565 |  |  | $ | 238 |  |  | $ | 10 |  |  | $ | 14,651 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 1,022 |  |  | $ | 1,250 |  |  | $ | 7,153 |  |  | $ | 140 |  |  | $ | 1,383 |  |  | $ | — |  |  | $ | — |  |  | $ | 408 |  |  | $ | — |  |  | $ | 11,356 |
Collectively evaluated for impairment |  |  | 260,757 |  |  | $ | 236,253 |  |  |  | 575,366 |  |  |  | 67,705 |  |  |  | 391,684 |  |  |  | 38,386 |  |  |  | 54,777 |  |  |  | 22,869 |  |  |  | 382 |  |  |  | 1,648,179 |
Ending balance |  | $ | 261,779 |  |  | $ | 237,503 |  |  | $ | 582,519 |  |  | $ | 67,845 |  |  | $ | 393,067 |  |  | $ | 38,386 |  |  | $ | 54,777 |  |  | $ | 23,277 |  |  | $ | 382 |  |  | $ | 1,659,535 |
For the Year Ended December 31, 2017 |  | Commercial and industrial |  |  | Construction and development |  |  | Commercial real estate |  |  | Farmland |  |  | 1-4 family residential |  |  | Multi-family residential |  |  | Consumer |  |  | Agricultural |  |  | Overdrafts |  |  | Total |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 1,592 |  |  | $ | 1,161 |  |  | $ | 3,264 |  |  | $ | 482 |  |  | $ | 3,960 |  |  | $ | 281 |  |  | $ | 585 |  |  | $ | 153 |  |  | $ | 6 |  |  | $ | 11,484 |
Provision for loan losses |  |  | 272 |  |  |  | 563 |  |  |  | 1,405 |  |  |  | 41 |  |  |  | (418 | ) |  |  | 348 |  |  |  | 253 |  |  |  | 276 |  |  |  | 110 |  |  |  | 2,850 |
Loans charged-off |  |  | (1,080 | ) |  |  | — |  |  |  | (84 | ) |  |  | — |  |  |  | (543 | ) |  |  | — |  |  |  | (344 | ) |  |  | (242 | ) |  |  | (165 | ) |  |  | (2,458 | )
Recoveries |  |  | 797 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 23 |  |  |  | — |  |  |  | 108 |  |  |  | — |  |  |  | 55 |  |  |  | 983 |
Ending balance |  | $ | 1,581 |  |  | $ | 1,724 |  |  | $ | 4,585 |  |  | $ | 523 |  |  | $ | 3,022 |  |  | $ | 629 |  |  | $ | 602 |  |  | $ | 187 |  |  | $ | 6 |  |  | $ | 12,859 |
Allowance ending balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 17 |  |  | $ | — |  |  | $ | 27 |  |  | $ | 85 |  |  | $ | 5 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 134 |
Collectively evaluated for impairment |  |  | 1,564 |  |  |  | 1,724 |  |  |  | 4,558 |  |  |  | 438 |  |  |  | 3,017 |  |  |  | 629 |  |  |  | 602 |  |  |  | 187 |  |  |  | 6 |  |  |  | 12,725 |
Ending balance |  | $ | 1,581 |  |  | $ | 1,724 |  |  | $ | 4,585 |  |  | $ | 523 |  |  | $ | 3,022 |  |  | $ | 629 |  |  | $ | 602 |  |  | $ | 187 |  |  | $ | 6 |  |  | $ | 12,859 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 463 |  |  | $ | — |  |  | $ | 4,258 |  |  | $ | 163 |  |  | $ | 842 |  |  | $ | 217 |  |  | $ | — |  |  | $ | 397 |  |  | $ | — |  |  | $ | 6,340 |
Collectively evaluated for impairment |  |  | 197,045 |  |  | $ | 196,774 |  |  |  | 413,879 |  |  |  | 58,860 |  |  |  | 373,529 |  |  |  | 36,357 |  |  |  | 51,267 |  |  |  | 25,199 |  |  |  | 294 |  |  |  | 1,353,204 |
Ending balance |  | $ | 197,508 |  |  | $ | 196,774 |  |  | $ | 418,137 |  |  | $ | 59,023 |  |  | $ | 374,371 |  |  | $ | 36,574 |  |  | $ | 51,267 |  |  | $ | 25,596 |  |  | $ | 294 |  |  | $ | 1,359,544 |
Credit Quality The Company closely monitors economic conditions and loan performance trends to manage and evaluate the exposure to credit risk. Key factors tracked by the Company and utilized in evaluating the credit quality of the loan portfolio include trends in delinquency ratios, the level of nonperforming assets, borrower’s repayment capacity, and collateral coverage. Assets are graded “pass” when the relationship exhibits acceptable credit risk and indicates repayment ability, tolerable collateral coverage and reasonable performance history. Lending relationships exhibiting potentially significant credit risk and marginal repayment ability and/or asset protection are graded “special mention.” Assets 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 so classified must have a well-defined weakness that jeopardizes the liquidation of the debt. Substandard graded loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Assets graded “doubtful” are substandard graded loans that have added characteristics that make collection or liquidation in full improbable. The Company typically measures impairment based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, or based on the loan’s observable market price or the fair value of the collateral if the loan is collateral-dependent. The following tables summarize the credit exposure in the Company's consumer and commercial loan portfolios as of:
December 31, 2019 |  | Commercial and industrial |  |  | Construction and development |  |  | Commercial real estate |  |  | Farmland |  |  | 1-4 family residential |  |  | Multi-family residential |  |  | Consumer and Overdrafts |  |  | Agricultural |  |  | Total |
Grade: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 279,217 |  |  | $ | 278,679 |  |  | $ | 548,662 |  |  | $ | 57,152 |  |  | $ | 409,896 |  |  | $ | 37,379 |  |  | $ | 53,327 |  |  | $ | 18,101 |  |  | $ | 1,682,413 |
Special mention |  |  | 153 |  |  |  | 600 |  |  |  | 1,071 |  |  |  | 91 |  |  |  | 1,425 |  |  |  | — |  |  |  | 192 |  |  |  | 126 |  |  |  | 3,658 |
Substandard |  |  | 213 |  |  |  | 1,219 |  |  |  | 17,627 |  |  |  | 233 |  |  |  | 845 |  |  |  | — |  |  |  | 55 |  |  |  | 132 |  |  |  | 20,324 |
Total |  | $ | 279,583 |  |  | $ | 280,498 |  |  | $ | 567,360 |  |  | $ | 57,476 |  |  | $ | 412,166 |  |  | $ | 37,379 |  |  | $ | 53,574 |  |  | $ | 18,359 |  |  | $ | 1,706,395 |
December 31, 2018 |  | Commercial and industrial |  |  | Construction and development |  |  | Commercial real estate |  |  | Farmland |  |  | 1-4 family residential |  |  | Multi-family residential |  |  | Consumer and Overdrafts |  |  | Agricultural |  |  | Total |
Grade: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 260,863 |  |  | $ | 236,253 |  |  | $ | 569,648 |  |  | $ | 67,541 |  |  | $ | 391,956 |  |  | $ | 38,386 |  |  | $ | 55,055 |  |  | $ | 22,713 |  |  | $ | 1,642,415 |
Special mention |  |  | 224 |  |  | — |  |  |  | 5,691 |  |  |  | 49 |  |  |  | 514 |  |  | — |  |  |  | 48 |  |  |  | 115 |  |  |  | 6,641 |
Substandard |  |  | 692 |  |  |  | 1,250 |  |  |  | 7,180 |  |  |  | 255 |  |  |  | 597 |  |  | — |  |  |  | 56 |  |  |  | 449 |  |  |  | 10,479 |
Total |  | $ | 261,779 |  |  | $ | 237,503 |  |  | $ | 582,519 |  |  | $ | 67,845 |  |  | $ | 393,067 |  |  | $ | 38,386 |  |  | $ | 55,159 |  |  | $ | 23,277 |  |  | $ | 1,659,535 |
The following tables summarize the payment status of loans in the Company’s total loan portfolio, including an aging of delinquent loans and loans 90 days or more past due continuing to accrue interest as of:
December 31, 2019 |  | 30 to 59 Days Past Due |  |  | 60 to 89 Days Past Due |  |  | 90 Days and Greater Past Due |  |  | Total Past Due |  |  | Current |  |  | Total Loans |  |  | Recorded Investment > 90 Days and Accruing |
Commercial and industrial |  | $ | 321 |  |  | $ | 53 |  |  | $ | 15 |  |  | $ | 389 |  |  | $ | 279,194 |  |  | $ | 279,583 |  |  | $ | — |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction and development |  |  | 161 |  |  |  | — |  |  |  | — |  |  |  | 161 |  |  |  | 280,337 |  |  |  | 280,498 |  |  |  | — |
Commercial real estate |  |  | 1,181 |  |  |  | 49 |  |  |  | 882 |  |  |  | 2,112 |  |  |  | 565,248 |  |  |  | 567,360 |  |  |  | — |
Farmland |  |  | 103 |  |  |  | — |  |  |  | — |  |  |  | 103 |  |  |  | 57,373 |  |  |  | 57,476 |  |  |  | — |
1-4 family residential |  |  | 2,514 |  |  |  | 1,433 |  |  |  | 845 |  |  |  | 4,792 |  |  |  | 407,374 |  |  |  | 412,166 |  |  |  | — |
Multi-family residential |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 37,379 |  |  |  | 37,379 |  |  |  | — |
Consumer |  |  | 373 |  |  |  | 152 |  |  |  | 96 |  |  |  | 621 |  |  |  | 52,624 |  |  |  | 53,245 |  |  |  | — |
Agricultural |  |  | 51 |  |  |  | 67 |  |  |  | — |  |  |  | 118 |  |  |  | 18,241 |  |  |  | 18,359 |  |  |  | — |
Overdrafts |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 329 |  |  |  | 329 |  |  |  | — |
Total |  | $ | 4,704 |  |  | $ | 1,754 |  |  | $ | 1,838 |  |  | $ | 8,296 |  |  | $ | 1,698,099 |  |  | $ | 1,706,395 |  |  | $ | — |
December 31, 2018 |  | 30 to 59 Days Past Due |  |  | 60 to 89 Days Past Due |  |  | 90 Days and Greater Past Due |  |  | Total Past Due |  |  | Current |  |  | Total Loans |  |  | Recorded Investment > 90 Days and Accruing |
Commercial and industrial |  | $ | 209 |  |  | $ | 493 |  |  | $ | 266 |  |  | $ | 968 |  |  | $ | 260,811 |  |  | $ | 261,779 |  |  | $ | — |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction and development |  |  | 735 |  |  |  | 2,816 |  |  |  | — |  |  |  | 3,551 |  |  |  | 233,952 |  |  |  | 237,503 |  |  |  | — |
Commercial real estate |  |  | 1,803 |  |  |  | 3 |  |  |  | 3,227 |  |  |  | 5,033 |  |  |  | 577,486 |  |  |  | 582,519 |  |  |  | — |
Farmland |  |  | 485 |  |  |  | — |  |  |  | — |  |  |  | 485 |  |  |  | 67,360 |  |  |  | 67,845 |  |  |  | — |
1-4 family residential |  |  | 2,849 |  |  |  | 666 |  |  |  | 596 |  |  |  | 4,111 |  |  |  | 388,956 |  |  |  | 393,067 |  |  |  | — |
Multi-family residential |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 38,386 |  |  |  | 38,386 |  |  |  | — |
Consumer |  |  | 526 |  |  |  | 51 |  |  |  | 56 |  |  |  | 633 |  |  |  | 54,144 |  |  |  | 54,777 |  |  |  | — |
Agricultural |  |  | 105 |  |  |  | 59 |  |  |  | 41 |  |  |  | 205 |  |  |  | 23,072 |  |  |  | 23,277 |  |  |  | — |
Overdrafts |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 382 |  |  |  | 382 |  |  |  | — |
Total |  | $ | 6,712 |  |  | $ | 4,088 |  |  | $ | 4,186 |  |  | $ | 14,986 |  |  | $ | 1,644,549 |  |  | $ | 1,659,535 |  |  | $ | — |
The following table presents information regarding nonaccrual loans as of:
|  | 2019 |  |  | 2018 |
Commercial and industrial |  | $ | 46 |  |  | $ | 366 |
Real estate: |  |  |  |  |  |  |  |
Construction and development |  |  | — |  |  |  | — |
Commercial real estate |  |  | 6,860 |  |  |  | 3,700 |
Farmland |  |  | 182 |  |  |  | 140 |
1-4 family residential |  |  | 3,853 |  |  |  | 1,567 |
Multi-family residential |  |  | — |  |  |  | — |
Consumer |  |  | 279 |  |  |  | 66 |
Agricultural |  |  | 42 |  |  |  | 52 |
Total |  | $ | 11,262 |  |  | $ | 5,891 |
If interest on nonaccrual loans had been accrued, such income would have been approximately $637 and $333 for the years ended December 31, 2019 and 2018, respectively. There were no commitments to lend additional funds to borrowers whose loans were classified as impaired. Impaired Loans and Troubled Debt Restructurings A troubled debt restructuring (“TDR”) is a restructuring in which a bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due from the borrower in accordance with the original contractual terms of the loan. Loans with insignificant delays or insignificant short falls in the amount of payments expected to be collected are not considered to be impaired. Loans defined as individually impaired, based on applicable accounting guidance, include larger balance nonperforming loans and TDRs. The outstanding balances of TDRs are shown below at December 31:
|  | 2019 |  |  | 2018 |
Nonaccrual TDRs |  | $ | 101 |  |  | $ | 335 |
Performing TDRs |  |  | 7,240 |  |  |  | 861 |
Total |  | $ | 7,341 |  |  | $ | 1,196 |
Specific reserves on TDRs |  | $ | 164 |  |  | $ | — |
The following tables present loans by class, modified as TDRs, that occurred during the years ended:
December 31, 2019 |  | Number of Contracts |  |  | Pre-Modification Outstanding Recorded Investment |  |  | Post-Modification Outstanding Recorded Investment |
Troubled Debt Restructurings: |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  | 4 |  |  | $ | 1,680 |  |  | $ | 1,515 |
Total |  |  | 4 |  |  | $ | 1,680 |  |  | $ | 1,515 |
There were two TDRs that subsequently defaulted during 2019, therefore remain on nonaccrual status. The TDRs described above did not increase the allowance for loan losses and resulted in no charge-offs during the year ended December 31, 2019.
December 31, 2018 |  | Number of Contracts |  |  | Pre-Modification Outstanding Recorded Investment |  |  | Post-Modification Outstanding Recorded Investment |
Troubled Debt Restructurings: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 3 |  |  | $ | 504 |  |  | $ | 504 |
1-4 family residential |  |  | 1 |  |  |  | 78 |  |  |  | 78 |
Total |  |  | 4 |  |  | $ | 582 |  |  | $ | 582 |
There was one TDR that subsequently defaulted in 2018 and was paid off during 2019. The TDR described above did not increase the allowance for loan losses and resulted in no charge-offs during the years ended December 31, 2018 or 2019. The following table presents information about the Company’s impaired loans as of:
December 31, 2019 |  | Unpaid Principal Balance |  |  | Recorded Investment |  |  | Related Allowance |  |  | Average Recorded Investment |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 289 |  |  | $ | 289 |  |  | $ | — |  |  | $ | 312 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction and development |  |  | 1,212 |  |  |  | 1,212 |  |  |  | — |  |  |  | 1,259 |
Commercial real estate |  |  | 4,612 |  |  |  | 4,612 |  |  |  | — |  |  |  | 4,244 |
Farmland |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
1-4 family residential |  |  | 2,498 |  |  |  | 2,498 |  |  |  | — |  |  |  | 1,798 |
Multi-family residential |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Agricultural |  |  | 62 |  |  |  | 62 |  |  |  | — |  |  |  | 190 |
Subtotal |  |  | 8,673 |  |  |  | 8,673 |  |  |  | — |  |  |  | 7,803 |
With allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 61 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction and development |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial real estate |  |  | 12,871 |  |  |  | 12,871 |  |  |  | 1,587 |  |  |  | 9,111 |
Farmland |  |  | 133 |  |  |  | 133 |  |  |  | 62 |  |  |  | 135 |
1-4 family residential |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 78 |
Multi-family residential |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Agricultural |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Subtotal |  |  | 13,004 |  |  |  | 13,004 |  |  |  | 1,649 |  |  |  | 9,385 |
Total |  | $ | 21,677 |  |  | $ | 21,677 |  |  | $ | 1,649 |  |  | $ | 17,188 |
The following table presents information about the Company’s impaired loans as of December 31, 2018:
December 31, 2018 |  | Unpaid Principal Balance |  |  | Recorded Investment |  |  | Related Allowance |  |  | Average Recorded Investment |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 837 |  |  | $ | 837 |  |  | $ | — |  |  | $ | 842 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction and development |  |  | 720 |  |  |  | 720 |  |  |  | — |  |  |  | 518 |
Commercial real estate |  |  | 5,168 |  |  |  | 5,168 |  |  |  | — |  |  |  | 5,138 |
Farmland |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 62 |
1-4 family residential |  |  | 1,223 |  |  |  | 1,223 |  |  |  | — |  |  |  | 1,132 |
Multi-family residential |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 54 |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Agricultural |  |  | 408 |  |  |  | 408 |  |  |  | — |  |  |  | 456 |
Subtotal |  |  | 8,356 |  |  |  | 8,356 |  |  |  | — |  |  |  | 8,202 |
With allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 185 |  |  |  | 185 |  |  |  | 64 |  |  |  | 300 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction and development |  |  | 530 |  |  |  | 530 |  |  |  | 4 |  |  |  | 44 |
Commercial real estate |  |  | 1,985 |  |  |  | 1,985 |  |  |  | 341 |  |  |  | 677 |
Farmland |  |  | 140 |  |  |  | 140 |  |  |  | 78 |  |  |  | 147 |
1-4 family residential |  |  | 160 |  |  |  | 160 |  |  |  | 6 |  |  |  | 128 |
Multi-family residential |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Agricultural |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 52 |
Subtotal |  |  | 3,000 |  |  |  | 3,000 |  |  |  | 493 |  |  |  | 1,348 |
Total |  | $ | 11,356 |  |  | $ | 11,356 |  |  | $ | 493 |  |  | $ | 9,550 |
During the years ended December 31, 2019, 2018 and 2017, total interest income and cash-based interest income recognized on impaired loans was minimal.

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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/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 + Details
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