ALLOWANCE FOR LOAN LOSSES

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

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, 2017. 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, 2017 (Dollars are in thousands)		Beginning Balance		Charge Offs		Recoveries		Provisions		Ending Balance
Real estate secured:
Commercial	$	1,625	$	(179)	$	193	$	350	$	1,989
Construction and land development		346		(1)		-		(154)		191
Residential 1-4 family		2,376		(714)		48		690		2,400
Multifamily		241		-		-		(135)		106
Farmland		428		(49)		361		(325)		415
Total real estate loans		5,016		(943)		602		426		5,101
Commercial		163		(11)		153		355		660
Agriculture		31		(4)		5		(12)		20
Consumer installment loans		123		(147)		19		161		156
All other loans		-		-		-		3		3
Unallocated		739		-		-		(483)		256
Total	$	6,072	$	(1,105)	$	779	$	450	$	6,196

		Allowance for Loan Losses						Recorded Investment in Loans
As of December 31, 2017 (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	$	499	$	1,490	$	1,989	$	5,149	$	122,539	$	127,688
Construction and land development		-		191		191		424		29,339		29,763
Residential 1-4 family		91		2,309		2,400		4,007		245,152		249,159
Multifamily		-		106		106		281		15,200		15,481
Farmland		243		172		415		1,642		21,356		22,998
Total real estate loans		833		4,268		5,101		11,503		433,586		445,089
Commercial		413		247		660		1,117		40,228		41,345
Agriculture		-		20		20		12		3,482		3,494
Consumer installment loans		-		156		156		8		22,403		22,411
All other loans		-		3		3		-		669		669
Unallocated		-		256		256		-		-		-
Total	$	1,246	$	4,950		6,196	$	12,640	$	500,368	$	513,008

The following table details activity in the allowance for loan losses by portfolio segment for the period ended December 31, 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 December 31, 2016 (Dollars are in thousands)		Beginning Balance		Charge Offs		Recoveries		Provisions		Ending Balance
Real estate secured:
Commercial	$	2,384	$	(557)	$	220	$	(422)	$	1,625
Construction and land development		332		(5)		26		(7)		346
Residential 1-4 family		2,437		(720)		87		572		2,376
Multifamily		232		(18)		-		27		241
Farmland		675		(2)		103		(348)		428
Total real estate loans		6,060		(1,302)		436		(178)		5,016
Commercial		266		(65)		62		(100)		163
Agriculture		124		-		7		(100)		31
Consumer installment loans		128		(83)		24		54		123
All other loans		1		-		-		(1)		-
Unallocated		914		-		-		(175)		739
Total	$	7,493	$	(1,450)	$	529	$	(500)	$	6,072

		Allowance for Loan Losses						Recorded Investment in Loans
As of December 31, 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	$	65	$	1,560	$	1,625	$	4,827	$	98,504	$	103,331
Construction and land development		106		240		346		245		25,510		25,755
Residential 1-4 family		56		2,320		2,376		4,416		245,284		249,700
Multifamily		-		241		241		301		12,281		12,582
Farmland		299		129		428		4,486		20,462		24,948
Total real estate loans		526		4,490		5,016		14,275		402,041		416,316
Commercial		18		145		163		67		26,888		26,955
Agriculture		5		26		31		24		3,140		3,164
Consumer installment loans		3		120		123		35		22,153		22,188
All other loans		-		-		-		-		6		6
Unallocated		-		739		739		-		-		-
Total	$	552	$	5,520		6,072	$	14,401	$	454,228	$	468,629

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. 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.