Allowance for Loan Losses

The following tables present, as of June 30, 2018, December 31, 2017 and June 30, 2017, the total allowance for loan losses, the allowance by impairment methodology, and loans by impairment methodology (in thousands):



	June 30, 2018
	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, 2017	$	414		$	775		$	2,948		$	418		$	771		$	5,326
Charge-offs	—			(24		)	—			(8		)	(468		)	(500		)
Recoveries	—			8			1			5			99			113
Provision for (recovery of) loan losses	(8		)	32			(285		)	10			351			100
Ending Balance, June 30, 2018	$	406		$	791		$	2,664		$	425		$	753		$	5,039
Ending Balance:
Individually evaluated for impairment	—			—			—			—			—			—
Collectively evaluated for impairment	406			791			2,664			425			753			5,039
Loans:
Ending Balance	$	37,350		$	211,101		$	224,362		$	40,943		$	17,177		$	530,933
Individually evaluated for impairment	865			1,330			2,029			257			—			4,481
Collectively evaluated for impairment	36,485			209,771			222,333			40,686			17,177			526,452



	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



	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

Impaired loans and the related allowance at June 30, 2018, December 31, 2017 and June 30, 2017, were as follows (in thousands):



	June 30, 2018
	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	$	984	$	865	$	—	$	865	$	—	$	1,063	$	27
Secured by 1-4 family	1,415		1,330		—		1,330		—		1,300		28
Other real estate loans	2,029		2,029		—		2,029		—		1,140		30
Commercial and industrial	270		257		—		257		—		65		2
Total	$	4,698	$	4,481	$	—	$	4,481	$	—	$	3,568	$	87

	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

	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

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, 2018, loans classified as troubled debt restructurings (TDRs) and included in impaired loans in the disclosure above totaled $321 thousand. At June 30, 2018, $273 thousand of the loans classified as TDRs were performing under the restructured terms and were not considered non-performing assets. There were $333 thousand in TDRs at December 31, 2017, $282 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, 2018 and 2017.

For the three and six months ended June 30, 2018 and 2017, 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.