Note

Allowance for Loan Losses

The following tables present, as of

June 30, 2019

December 31, 2018

and

June 30, 2018

, the total allowance for loan losses, the allowance by impairment methodology, and loans by impairment methodology (in thousands):

	June 30, 2019
	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, 2018	$	561		$	895		$	2,160	$	464		$	929		$	5,009
Charge-offs		—			(58	)		—		(2	)		(387	)		(447	)
Recoveries		50			5			—		4			174			233
Provision for (recovery of) loan losses		(71	)		(64	)		233		50			52			200
Ending Balance, June 30, 2019	$	540		$	778		$	2,393	$	516		$	768		$	4,995
Ending Balance:
Individually evaluated for impairment		46			20			35		—			—			101
Collectively evaluated for impairment		494			758			2,358		516			768			4,894
Loans:
Ending Balance	$	46,281		$	225,820		$	237,370	$	49,353		$	16,130		$	574,954
Individually evaluated for impairment		391			866			518		—			—			1,775
Collectively evaluated for impairment		45,890			224,954			236,852		49,353			16,130			573,179

	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, At 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

	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, At 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

Impaired loans and the related allowance at

June 30, 2019

December 31, 2018

and

June 30, 2018

, were as follows (in thousands):

	June 30, 2019
	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	$	410	$	—	$	391	$	391	$	46	$	360	$	1
Secured by 1-4 family		941		715		151		866		20		802		2
Other real estate loans		528		483		35		518		35		1,035		3
Commercial and industrial		—		—		—		—		—		45		—
Total	$	1,879	$	1,198	$	577	$	1,775	$	101	$	2,242	$	6

	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

	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

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, 2019

, loans classified as troubled debt restructurings (TDRs) and included in impaired loans in the disclosure above totaled

$381

thousand. At

June 30, 2019

none

of the loans classified as TDRs were performing under the restructured terms and all were considered non-performing assets. There were

$467

thousand in TDRs at

December 31, 2018

$264

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

loans modified under TDRs during the

three

months ended

June 30, 2019.

There was

one

loan secured by

family residential real estate modified as a TDR during the

six

months ended

June 30, 2019

because the loan was extended with terms considered to be below market. The TDR described above did

not

have an impact on the allowance for loan losses at

June 30, 2019

. There were

loans modified under TDRs during the

three

and

six

months ended

June 30, 2018

For the

three

and

six

months ended

June 30, 2019

and

2018

, there were

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.