Note 4. Allowance for Loan Losses

The following tables present, as of March 31, 2016, December 31, 2015 and March 31, 2015, the total allowance for loan losses, the allowance by impairment methodology and loans by impairment methodology (in thousands):


	March 31, 2016
	Construction and Land Development			Secured by 1-4 Family Residential			Other Real Estate		Commercial and Industrial			Consumer and Other Loans			Total
Allowance for loan losses:
Beginning Balance, December 31, 2015	$	1,532		$	939		$	2,534	$	306		$	213		$	5,524
Charge-offs		—			(2	)		—		—			(118	)		(120	)
Recoveries		1			9			—		3			103			116
Provision for (recovery of) loan losses		(163	)		38			117		(12	)		20			—

Ending Balance, March 31, 2016	$	1,370		$	984		$	2,651	$	297		$	218		$	5,520

Ending Balance:
Individually evaluated for impairment		222			22			190		—			—			434
Collectively evaluated for impairment		1,148			962			2,461		297			218			5,086
Loans:
Ending Balance		31,505			196,165			191,306		24,215			10,885			454,076
Individually evaluated for impairment		2,675			2,062			2,990		89			—			7,816
Collectively evaluated for impairment		28,830			194,103			188,316		24,126			10,885			446,260


	December 31, 2015
	Construction and Land Development		Secured by 1-4 Family Residential			Other Real Estate			Commercial and Industrial			Consumer and Other Loans			Total
Allowance for loan losses:
Beginning Balance, December 31, 2014	$	1,403	$	1,204		$	3,658		$	310		$	143		$	6,718
Charge-offs		—		(142	)		(1,125	)		(59	)		(512	)		(1,838	)
Recoveries		4		373			2			72			293			744
Provision for (recovery of) loan losses		125		(496	)		(1	)		(17	)		289			(100	)

Ending Balance, December 31, 2015	$	1,532	$	939		$	2,534		$	306		$	213		$	5,524

Ending Balance:
Individually evaluated for impairment		326		23			195			—			—			544
Collectively evaluated for impairment		1,206		916			2,339			306			213			4,980
Loans:
Ending Balance		33,135		189,286			181,447			24,048			11,083			438,999
Individually evaluated for impairment		2,544		2,044			3,023			94			—			7,705
Collectively evaluated for impairment		30,591		187,242			178,424			23,954			11,083			431,294

	March 31, 2015
	Construction and Land Development		Secured by 1-4 Family Residential			Other Real Estate			Commercial and Industrial			Consumer and Other Loans			Total
Allowance for loan losses:
Beginning Balance, December 31, 2014	$	1,403	$	1,204		$	3,658		$	310		$	143		$	6,718
Charge-offs		—		(47	)		—			—			(65	)		(112	)
Recoveries		1		34			1			60			69			165
Provision for (recovery of) loan losses		197		(239	)		137			(82	)		(13	)		—

Ending Balance, March 31, 2015	$	1,601	$	952		$	3,796		$	288		$	134		$	6,771

Ending Balance:
Individually evaluated for impairment		341		85			1,447			28			—			1,901
Collectively evaluated for impairment		1,260		867			2,349			260			134			4,870
Loans:
Ending Balance		33,344		172,874			158,896			21,420			11,983			398,517
Individually evaluated for impairment		3,071		2,747			7,103			113			—			13,034
Collectively evaluated for impairment		30,273		170,127			151,793			21,307			11,983			385,483

Impaired loans and the related allowance at March 31, 2016, December 31, 2015 and March 31, 2015, were as follows (in thousands):


	March 31, 2016
	Unpaid Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized
Real estate loans:
Construction and land development	$	2,897	$	2,253	$	422	$	2,675	$	222	$	2,593	$	16
Secured by 1-4 family		2,136		2,040		22		2,062		22		2,059		24
Other real estate loans		3,549		2,436		554		2,990		190		3,069		8
Commercial and industrial		104		89		—		89		—		92		—
Consumer and other loans		—		—		—		—		—		—		—

Total	$	8,686	$	6,818	$	998	$	7,816	$	434	$	7,813	$	48


	December 31, 2015
	Unpaid Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized
Real estate loans:
Construction and land development	$	2,741	$	2,206	$	338	$	2,544	$	326	$	2,967	$	60
Secured by 1-4 family		2,116		2,021		23		2,044		23		2,526		107
Other real estate loans		3,492		2,463		560		3,023		195		4,933		58
Commercial and industrial		107		94		—		94		—		118		—
Consumer and other loans		—		—		—		—		—		—		—

Total	$	8,456	$	6,784	$	921	$	7,705	$	544	$	10,544	$	225


	March 31, 2015
	Unpaid Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized
Real estate loans:
Construction and land development	$	3,198	$	2,196	$	875	$	3,071	$	341	$	3,171	$	16
Secured by 1-4 family		3,672		2,509		238		2,747		85		3,149		29
Other real estate loans		7,559		4,119		2,984		7,103		1,447		7,149		34
Commercial and industrial		122		3		110		113		28		118		—
Consumer and other loans		—		—		—		—		—		—		—

Total	$	14,551	$	8,827	$	4,207	$	13,034	$	1,901	$	13,587	$	79

The “Recorded Investment” amounts in the table above represent the outstanding principal balance on each loan represented in the table. The “Unpaid Principal Balance” represents the outstanding principal balance on each loan represented in the table plus any amounts that have been charged off on each loan and/or payments that have been applied towards principal on non-accrual loans.

As of March 31, 2016, one loan totaling $663 thousand was classified as a troubled debt restructuring (TDR) and included in impaired loans in the disclosure above. At March 31, 2016, the loan classified as a TDR was not performing under the restructured terms and was considered a non-performing asset. There were $982 thousand in TDRs at December 31, 2015, $317 thousand of which were performing under the restructured terms. Modified terms under TDRs may include rate reductions, extension of terms that are considered to be below market, conversion to interest only, and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. There were no loans modified under TDRs during the three month periods ended March 31, 2016 and 2015.

For the three months ended March 31, 2016 and 2015, there were no troubled debt restructurings that subsequently defaulted within twelve months of the loan modification. Management defines default as over ninety days past due or the foreclosure and repossession of the collateral or charge-off of the loan during the twelve month period subsequent to the modification.