7. ALLOWANCE FOR LOAN LOSSES

9 Months Ended

Sep. 30, 2016

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 September 30, 2016. 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 September 30, 2016 (Dollars are in thousands)	Beginning Balance		Charge Offs			Recoveries		Advances		Provisions			Ending Balance
Real estate secured:
Commercial	$	2,384	$	(417	)	$	217	$	—	$	(238	)	$	1,946
Construction and land development		332		(5	)		24		—		(5	)		346
Residential 1-4 family		2,437		(601	)		78		—		329			2,243
Multifamily		232		(18	)		—		—		19			233
Farmland		675		(2	)		102		—		(144	)		631
Total real estate loans		6,060		(1,043	)		421		—		(39	)		5,399
Commercial		266		(65	)		52		—		(46	)		207
Agriculture		124		—			6		—		(87	)		43
Consumer installment loans		128		(22	)		16		—		9			131
All other loans		1		—			—		—		(1	)		—
Unallocated		914		—			—		—		(336	)		578
Total	$	7,493	$	(1,130	)	$	495	$	—	$	(500	)	$	6,358

		Allowance for Loan Losses						Recorded Investment in Loans
As of September 30, 2016 (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	$	172	$	1,774	$	1,946	$	5,122	$	97,875	$	102,997
Construction and land development		119		227		346		260		22,489		22,749
Residential 1-4 family		88		2,155		2,243		4,234		243,808		248,042
Multifamily		-		233		233		305		12,900		13,205
Farmland		293		338		631		4,860		18,968		23,828
Total real estate loans		672		4,727		5,399		14,781		396,040		410,821
Commercial		19		188		207		67		26,179		26,246
Agriculture		8		35		43		27		4,432		4,459
Consumer installment loans		20		111		131		53		23,124		23,177
All other loans		-		-		-		-		18		18
Unallocated		-		578		578		-		-		-
Total	$	719	$	5,639	$	6,358	$	14,928	$	449,793	$	464,721

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

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.