Allowance for Loan Losses

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



	December 31, 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	—		(55		)	—			(10		)	(1,104		)	(1,169		)
Recoveries	—		13			5			8			226			252
Provision for (recovery of) loan losses	147		162			(793		)	48			1,036			600
Ending Balance, December 31, 2018	$	561	$	895		$	2,160		$	464		$	929		$	5,009
Ending Balance:
Individually evaluated for impairment	71		172			—			—			—			243
Collectively evaluated for impairment	490		723			2,160			464			929			4,766
Loans:
Ending Balance	45,867		215,945			219,553			44,605			16,886			542,856
Individually evaluated for impairment	327		663			2,249			197			—			3,436
Collectively evaluated for impairment	45,540		215,282			217,304			44,408			16,886			539,420



	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

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



	December 31, 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	$	336	$	—	$	327	$	327	$	71	$	758	$	12
Secured by 1-4 family	720		356		307		663		172		966		22
Other real estate loans	2,290		2,249		—		2,249		—		1,585		51
Commercial and industrial	200		197		—		197		—		146		—
Total	$	3,546	$	2,802	$	634	$	3,436	$	243	$	3,455	$	85



	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

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, 2018, loans classified as troubled debt restructurings (TDRs) and included in impaired loans in the disclosure above totaled $467 thousand. At December 31, 2018, $264 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 was one loan secured by 1-4 family residential real estate classified as a TDR during the year ended December 31, 2018 because the loan was renewed with an interest rate considered to be below the market rate. The recorded investment for this loan prior to modification totaled $151 thousand and the recorded investment after the modification totaled $160 thousand. The TDR described above increased the allowance for loan losses by $27 thousand during the year ended December 31, 2018. There were no loans modified under TDRs during the year ended December 31, 2017.

For the years ended December 31, 2018 and 2017, 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, 2018 and December 31, 2017. Had non-accrual loans performed in accordance with their original contract terms, the Company would have recognized additional interest income in the amount of $111 thousand and $107 thousand during the years ended December 31, 2018 and 2017, respectively.