Note 4. Allowance for Loan Losses

The following tables present, as of March 31, 2017, December 31, 2016 and March 31, 2016, the total allowance for loan losses, the allowance by impairment methodology and loans by impairment methodology (in thousands):


	March 31, 2017
	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, 2016	$	441	$	1,019		$	3,142	$	380		$	339		$	5,321
Charge-offs		—		—			—		—			(106	)		(106	)
Recoveries		1		128			47		5			55			236
Provision for (recovery of) loan losses		39		(187	)		78		(10	)		80			—

Ending Balance, March 31, 2017	$	481	$	960		$	3,267	$	375		$	368		$	5,451


Ending Balance:
Individually evaluated for impairment		—		31			—		—			—			31
Collectively evaluated for impairment		481		929			3,267		375			368			5,420

Loans:
Ending Balance	$	36,024	$	205,623		$	216,591	$	29,192		$	10,340		$	497,770

Individually evaluated for impairment		2,022		1,443			977		71			—			4,513
Collectively evaluated for impairment		34,002		204,180			215,614		29,121			10,340			493,257


	December 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		—			(83	)		(165	)		—		(540	)		(788	)
Recoveries		4			293			2			11		275			585
Provision for (recovery of) loan losses		(1,095	)		(130	)		771			63		391			—

Ending Balance, December 31, 2016	$	441		$	1,019		$	3,142		$	380	$	339		$	5,321


Ending Balance:
Individually evaluated for impairment		—			37			—			—		—			37
Collectively evaluated for impairment		441			982			3,142			380		339			5,284

Loans:
Ending Balance	$	34,699		$	198,763		$	211,210		$	29,981	$	11,414		$	486,067

Individually evaluated for impairment		1,973			1,828			984			75		—			4,860
Collectively evaluated for impairment		32,726			196,935			210,226			29,906		11,414			481,207


	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

Impaired loans and the related allowance at March 31, 2017, December 31, 2016 and March 31, 2016, were as follows (in thousands):


	March 31, 2017
	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	$	2,455	$	2,022	$	—	$	2,022	$	—	$	1,922	$	13
Secured by 1-4 family		1,469		1,358		85		1,443		31		1,781		16
Other real estate loans		1,206		977		—		977		—		980		19
Commercial and industrial		89		71		—		71		—		73		1

Total	$	5,219	$	4,428	$	85	$	4,513	$	31	$	4,756	$	49


	December 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	$	2,388	$	1,973	$	—	$	1,973	$	—	$	2,407	$	66
Secured by 1-4 family		1,851		1,675		153		1,828		37		2,013		87
Other real estate loans		1,213		984		—		984		—		2,529		22
Commercial and industrial		93		75		—		75		—		85		1

Total	$	5,545	$	4,707	$	153	$	4,860	$	37	$	7,034	$	176


	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		—

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

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, 2017, loans classified as troubled debt restructurings (TDRs) and included in impaired loans in the disclosure above totaled $454 thousand. At March 31, 2017, $296 thousand of the loans classified as TDRs were performing under the restructured terms and were not considered non-performing assets. There were $460 thousand in TDRs at December 31, 2016, $300 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, 2017 and 2016.

For the three months ended March 31, 2017 and 2016, 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.