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Note 4 - Allowance for Loan Losses
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Allowance for Credit Losses [Text Block]
Note
4.
Allowance for Loan Losses
 
The following tables present, as of
December 31, 2019
 and
2018
, the total allowance for loan losses, the allowance by impairment methodology, and loans by impairment methodology (in thousands).
 
 
   
December 31, 2019
  
   
Construction and Land Development
    
Secure 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
    
(2
 )    
(58
 )    
(27
 )    
(2
 )    
(795
 )    
(884
 )
Recoveries
    
50
      
9
      
1
      
8
      
291
      
359
  
Provision for (recovery of) loan losses
    
(145
 )    
(70
 )    
162
      
92
      
411
      
450
  
Ending Balance, December 31, 2019
   $
464
     $
776
     $
2,296
     $
562
     $
836
     $
4,934
  
Ending Balance:
                                                
Individually evaluated for impairment
    
22
      
11
      
—
      
—
      
—
      
33
  
Collectively evaluated for impairment
    
442
      
765
      
2,296
      
562
      
836
      
4,901
  
Loans:
      
 
      
 
      
 
      
 
      
 
      
 
Ending Balance
    
43,164
      
229,438
      
236,555
      
50,153
      
15,036
      
574,346
  
Individually evaluated for impairment
    
367
      
630
      
462
      
—
      
—
      
1,459
  
Collectively evaluated for impairment
    
42,797
      
228,808
      
236,093
      
50,153
      
15,036
      
572,887
  
 
   
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
  
 
Impaired loans and the related allowance at
December 31, 2019
 and
2018
, were as follows (in thousands):
 
 
   
December 31, 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
   $
401
     $
70
     $
297
     $
367
     $
22
     $
369
     $
1
  
Secured by 1-4 family
    
729
      
488
      
142
      
630
      
11
      
769
      
1
  
Other real estate loans
    
509
      
462
      
—
      
462
      
—
      
766
      
3
  
Commercial and industrial
    
—
      
—
      
—
      
—
      
—
      
22
      
—
  
Total
   $
1,639
     $
1,020
     $
439
     $
1,459
     $
33
     $
1,926
     $
5
  
 
   
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
  
 
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, 2019
, loans classified as troubled debt restructurings (TDRs) and included in impaired loans in the disclosure above totaled
$360
 thousand. At
December 31, 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 was
one
loan secured by
1
-
4
family residential real estate classified as a TDR during the year ended
December 31, 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
December 31, 2019.
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 loan modified as a TDR during
2018
increased the allowance for loan losses by
$27
thousand at 
December 31, 2018
.
 
For the years ended
December 31, 2019
 and
2018
, 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, 2019
 and
December 31, 2018
. Had non-accrual loans performed in accordance with their original contract terms, the Company would have recognized additional interest income in the amou
nt of
$96
tho
usand and
$111
 thousand during the years ended
December 31, 2019
 and
2018
, respectively.