7. ALLOWANCE FOR LOAN LOSSES

12 Months Ended

Dec. 31, 2015

Receivables [Abstract]

7. ALLOWANCE FOR LOAN LOSSES

NOTE 7 ALLOWANCE FOR LOAN LOSSES:

The following table details activity in the allowance for loan losses by portfolio segment for the period ended December 31, 2015. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

As of December 31, 2015 (Dollars are in thousands)	Beginning Balance		Charge Offs			Recoveries		Advances		Provisions			Ending Balance
Real estate secured:
Commercial	$	4,418	$	(724	)	$	147	$	—	$	(1,457	)	$	2,384
Construction and land development		199		(226	)		215		—		144			332
Residential 1-4 family		2,572		(743	)		93		—		515			2,437
Multifamily		154		(384	)		6		—		456			232
Farmland		913		(90	)		214		—		(362	)		675
Total real estate loans		8,256		(2,167	)		675		—		(704	)		6,060
Commercial		457		(92	)		1,412		—		(1,511	)		266
Agriculture		125		—			3		—		(4	)		124
Consumer installment loans		171		(101	)		41		—		17			128
All other loans		1		—			—		—		—			1
Unallocated		912		—			—		—		2			914
Total	$	9,922	$	(2,360	)	$	2,131	$	—	$	(2,200	)	$	7,493

	Allowance for Loan Losses						Recorded Investment in Loans
As of December 31, 2015 (Dollars are in thousands)	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total
Real estate secured:
Commercial	$	288	$	2,096	$	2,384	$	6,715	$	91,854	$	98,569
Construction and land development		155		177		332		299		14,373		14,672
Residential 1-4 family		168		2,269		2,437		4,957		237,959		242,916
Multifamily		—		232		232		430		12,524		12,954
Farmland		328		347		675		4,744		17,430		22,174
Total real estate loans		939		5,121		6,060		17,145		374,140		391,285
Commercial		24		242		266		69		21,400		21,469
Agriculture		18		106		124		54		3,739		3,793
Consumer installment loans		2		126		128		56		24,512		24,568
All other loans		—		1		1		—		54		54
Unallocated		—		914		914		—		—		—
Total	$	983	$	6,510		7,493	$	17,324	$	423,845	$	441,169

The following table details activity in the allowance for loan losses by portfolio segment for the period ended December 31, 2014. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

As of December 31, 2014 (Dollars are in thousands)	Beginning Balance		Charge Offs			Recoveries		Advances		Provisions			Ending Balance
Real estate secured:
Commercial	$	5,203	$	(2,190	)	$	427	$	—	$	978		$	4,418
Construction and land development		1,184		(292	)		236		—		(929	)		199
Residential 1-4 family		3,316		(1,063	)		148		—		171			2,572
Multifamily		133		(41	)		—		—		62			154
Farmland		1,224		(830	)		520		—		(1	)		913
Total real estate loans		11,060		(4,416	)		1,331		—		281			8,256
Commercial		1,147		(47	)		29		—		(672	)		457
Agriculture		337		(17	)		1		—		(196	)		125
Consumer installment loans		153		(79	)		40		—		57			171
All other loans		2		—			—		—		(1	)		1
Unallocated		381		—			—		—		531			912
Total	$	13,080	$	(4,559	)	$	1,401	$	—	$	—		$	9,922

	Allowance for Loan Losses						Recorded Investment in Loans
As of December 31, 2014 (Dollars are in thousands)	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total
Real estate secured:
Commercial	$	1,482	$	2,936	$	4,418	$	8,503	$	99,559	$	108,062
Construction and land development		88		111		199		318		15,121		15,439
Residential 1-4 family		347		2,225		2,572		5,818		237,720		243,538
Multifamily		15		139		154		551		13,858		14,409
Farmland		343		570		913		6,871		18,381		25,252
Total real estate loans		2,275		5,981		8,256		22,061		384,639		406,700
Commercial		26		431		457		622		21,185		21,807
Agriculture		30		95		125		82		3,035		3,117
Consumer installment loans		—		171		171		15		25,813		25,828
All other loans		—		1		1		—		97		97
Unallocated		—		912		912		—		—		—
Total	$	2,331	$	7,591	$	9,922	$	22,780	$	434,769	$	457,549

In determining the amount of our allowance, we rely on an analysis of our loan portfolio, our experience and our evaluation of general economic conditions, as well as the requirements of the written agreement and other regulatory input. If our assumptions prove to be incorrect, our current allowance may not be sufficient to cover future loan losses and we may experience significant increases to our provision.