Note

Allowance for Loan Losses

The following tables present, as of

March 31, 2020

December 31, 2019

and

March 31, 2019

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

	March 31, 2020
	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, 2019	$	464		$	776	$	2,296	$	562		$	836		$	4,934
Charge-offs		—			—		—		(68	)		(260	)		(328	)
Recoveries		—			2		1		2			73			78
Provision for (recovery of) loan losses		(3	)		298		347		215			43			900
Ending Balance, March 31, 2020	$	461		$	1,076	$	2,644	$	711		$	692		$	5,584
Ending Balance:
Individually evaluated for impairment		—			11		—		—			—			11
Collectively evaluated for impairment		461			1,065		2,644		711			692			5,573
Loans:
Ending Balance	$	40,279		$	230,980	$	241,374	$	55,508		$	13,726		$	581,867
Individually evaluated for impairment		400			667		455		—			—			1,522
Collectively evaluated for impairment		39,879			230,313		240,919		55,508			13,726			580,345

	December 31, 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		(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

	March 31, 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		—			(49	)		—		—		(179	)		(228	)
Recoveries		50			2			—		2		111			165
Provision for (recovery of) loan losses		(6	)		(82	)		115		26		(53	)		—
Ending Balance, March 31, 2019	$	605		$	766		$	2,275	$	492	$	808		$	4,946
Ending Balance:
Individually evaluated for impairment		71			23			35		—		—			129
Collectively evaluated for impairment		534			743			2,240		492		808			4,817
Loans:
Ending Balance	$	48,948		$	217,527		$	221,396	$	46,045	$	16,559		$	550,475
Individually evaluated for impairment		398			990			787		—		—			2,175
Collectively evaluated for impairment		48,550			216,537			220,609		46,045		16,559			548,300

Impaired loans and the related allowance at

March 31, 2020

December 31, 2019

and

March 31, 2019

, were as follows (in thousands):

	March 31, 2020
	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	$	439	$	400	$	—	$	400	$	—	$	367	$	—
Secured by 1-4 family		770		444		223		667		11		613		1
Other real estate loans		505		455		—		455		—		458		—
Total	$	1,714	$	1,299	$	223	$	1,522	$	11	$	1,438	$	1

	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

	March 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	$	412	$	—	$	398	$	398	$	71	$	326	$	1
Secured by 1-4 family		1,055		836		154		990		23		661		2
Other real estate loans		792		752		35		787		35		1,329		7
Commercial and industrial		—		—		—		—		—		90		—
Total	$	2,259	$	1,588	$	587	$	2,175	$	129	$	2,406	$	10

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

March 31, 2020

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

$350

thousand. At

March 31, 2020

none

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

$360

thousand in TDRs at

December 31, 2019

none

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

month period ended

March 31, 2020

. There was

one

loan secured by

family residential real estate modified as a TDR during the

three

months ended

March 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

March 31, 2019.

In response to the COVID-

pandemic, the Company executed payment deferrals on outstanding loan balances of

$61.6

million as of

March 31, 2020.

These deferrals were for

more than

six

months of duration and were for loans

not

more than

days past due as of

December 31, 2019.

As such, they were

not

considered TDRs based on the relief provisions of the CARES Act and recent interagency regulatory guidance. In the period subsequent to

March 31, 2020

and through

April 30, 2020,

the Company executed additional payment deferrals on outstanding loan balances of

$109.4

million.

For the

three

months ended

March 31, 2020

and

2019

, there were

TDRs 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.