Allowance for Loan Losses

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



	December 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	—			(126		)	—			—		(607		)	(733		)
Recoveries	11			302			50			10		265			638
Provision for (recovery of) loan losses	(38		)	(420		)	(244		)	28		774			100
Ending Balance, December 31, 2017	$	414		$	775		$	2,948		$	418	$	771		$	5,326
Ending Balance:
Individually evaluated for impairment	—			—			—			—		—			—
Collectively evaluated for impairment	414			775			2,948			418		771			5,326
Loans:
Ending Balance	35,927			208,177			222,256			38,763		17,078			522,201
Individually evaluated for impairment	1,150			1,307			1,289			65		—			3,811
Collectively evaluated for impairment	34,777			206,870			220,967			38,698		17,078			518,390



	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

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



	December 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	$	1,627	$	1,150	$	—	$	1,150	$	—	$	1,814	$	63
Secured by 1-4 family	1,387		1,307		—		1,307		—		1,637		64
Other real estate loans	1,483		1,289		—		1,289		—		1,137		95
Commercial and industrial	78		65		—		65		—		68		10
Total	$	4,575	$	3,811	$	—	$	3,811	$	—	$	4,656	$	232



	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

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 December 31, 2017, loans classified as troubled debt restructurings (TDRs) and included in impaired loans in the disclosure above totaled $333 thousand. At December 31, 2017, $282 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 year ended December 31, 2017. There was one loan secured by 1-4 family residential real estate classified as a TDR during the year ended December 31, 2016 because principal was forgiven as part of the loan modification. The recorded investment for this loan prior to modification totaled $138 thousand and the recorded investment after the modification totaled $88 thousand. The TDR described above increased the allowance for loan losses by $32 thousand and resulted in a charge-off of $50 thousand during the year ended December 31, 2016.

For the years ended December 31, 2017 and 2016, there were no TDRs that subsequently defaulted within twelve months of the loan modification. Management defines default as over 90 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.

There were no non-accrual loans excluded from impaired loan disclosure at December 31, 2017 and December 31, 2016. Had non-accrual loans performed in accordance with their original contract terms, the Company would have recognized additional interest income in the amount of $107 thousand during the years ended December 31, 2017 and 2016, respectively.