Allowance for Loan Losses

The following tables present, as of June 30, 2017, December 31, 2016 and June 30, 2016, the total allowance for loan losses, the allowance by impairment methodology and loans by impairment methodology (in thousands):



	June 30, 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	—		(25		)	—			—			(242		)	(267		)
Recoveries	2		238			47			7			96			390
Provision for (recovery of) loan losses	39		(360		)	(115		)	(12		)	448			—
Ending Balance, June 30, 2017	$	482	$	872		$	3,074		$	375		$	641		$	5,444
Ending Balance:
Individually evaluated for impairment	—		57			—			—			—			57
Collectively evaluated for impairment	482		815			3,074			375			641			5,387
Loans:
Ending Balance	$	36,783	$	205,114		$	215,742		$	31,201		$	14,993		$	503,833
Individually evaluated for impairment	1,613		1,772			1,355			67			—			4,807
Collectively evaluated for impairment	35,170		203,342			214,387			31,134			14,993			499,026



	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



	June 30, 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		)	—		—		(254		)	(256		)
Recoveries	2			279			1		7		177			466
Provision for (recovery of) loan losses	(865		)	(178		)	874		3		166			—
Ending Balance, June 30, 2016	$	669		$	1,038		$	3,409	$	316	$	302		$	5,734
Ending Balance:
Individually evaluated for impairment	—			—			184		—		—			184
Collectively evaluated for impairment	669			1,038			3,225		316		302			5,550
Loans:
Ending Balance	$	33,232		$	196,295		$	200,162	$	24,721	$	11,136		$	465,546
Individually evaluated for impairment	2,664			2,022			2,614		84		—			7,384
Collectively evaluated for impairment	30,568			194,273			197,548		24,637		11,136			458,162

Impaired loans and the related allowance at June 30, 2017, December 31, 2016 and June 30, 2016, were as follows (in thousands):



	June 30, 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	$	2,066	$	1,613	$	—	$	1,613	$	—	$	1,955	$	26
Secured by 1-4 family	1,820		1,348		424		1,772		57		1,667		31
Other real estate loans	1,540		1,355		—		1,355		—		958		49
Commercial and industrial	86		67		—		67		—		71		2
Total	$	5,512	$	4,383	$	424	$	4,807	$	57	$	4,651	$	108

	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

	June 30, 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	$	2,900	$	2,664	$	—	$	2,664	$	—	$	2,545	$	31
Secured by 1-4 family	2,041		2,022		—		2,022		—		2,051		52
Other real estate loans	3,191		2,066		548		2,614		184		2,965		17
Commercial and industrial	100		84		—		84		—		90		—
Total	$	8,232	$	6,836	$	548	$	7,384	$	184	$	7,651	$	100

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. Only loan classes with balances are included in the tables above.

As of June 30, 2017, loans classified as troubled debt restructurings (TDRs) and included in impaired loans in the disclosure above totaled $375 thousand. At June 30, 2017, $291 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 and six month periods ended June 30, 2017 and 2016.

For the three and six months ended June 30, 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.