Note 4 - Allowance for Loan Losses

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Allowance for Credit Losses [Text Block]

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ote 4. Allowance for Loan Losses

The following table presents, as of June 30, 2016, the total allowance for loan losses, the allowance by impairment methodology (individually evaluated for impairment or collectively evaluated for impairment), the total loans and loans by impairment methodology (individually evaluated for impairment or collectively evaluated for impairment).

June 30 , 2016	Allowance for loan losses																Loans
Class of Loan (Dollars in Thousands)	Beginning balance		Charge- offs			Recoveries		Provisions			Ending Balance		Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment		Ending balance		Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment
Construction loans:
Residential	$	83	$	−		$	−	$	3		$	86	$	−	$	86	$	12,472	$	−	$	12,472
Land acquisition, development & commercial		187		(2	)		−		(42	)		143		−		143		21,057		−		21,057
Real estate:
Residential		1,047		−			45		(213	)		879		−		879		106,622		771		105,851
Commercial		1,001		(606	)		−		1,119			1,514		17		1,497		160,901		8,829		152,072
Commercial, industrial & agricultural		531		(33	)		−		(75	)		423		−		423		55,719		12		55,707
Equity lines		277		(99	)		9		100			287		−		287		29,235		−		29,235
Consumer		85		(45	)		14		44			98		−		98		7,662		−		7,662
Unallocated		87		−			−		(68	)		19		−		19		−		−		−
Total	$	3,298	$	(785	)	$	68	$	868		$	3,449	$	17	$	3,432	$	393,668	$	9,612	$	384,056

The following table presents, as of December 31, 2015, the total allowance for loan losses, the allowance by impairment methodology (individually evaluated for impairment or collectively evaluated for impairment), the total loans and loans by impairment methodology (individually evaluated for impairment or collectively evaluated for impairment).

December 31, 2015	Allowance for loan losses																Loans
Class of Loan (Dollars in Thousands)	Beginning balance		Charge- offs			Recoveries		Provisions			Ending balance		Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment		Ending balance		Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment
Construction loans:
Residential	$	43	$	−		$	−	$	40		$	83	$	−	$	83	$	11,779	$	−	$	11,779
Land acquisition, development & commercial		453		−			−		(266	)		187		−		187		27,440		−		27,440
Real estate:
Residential		833		−			1		213			1,047		−		1,047		100,268		247		100,021
Commercial		1,012		−			−		(11	)		1,001		17		984		140,952		7,578		133,374
Commercial, industrial & agricultural		319		−			10		202			531		−		531		53,012		12		53,000
Equity lines		423		−			1		(147	)		277		−		277		26,376		−		26,376
Consumer		65		(80	)		34		66			85		−		85		7,531		−		7,531
Unallocated		184		−			−		(97	)		87		−		87		−		−		−
Total	$	3,332	$	(80	)	$	46	$	−		$	3,298	$	17	$	3,281	$	367,358	$	7,837	$	359,521

Loans by credit quality indicators as of June 30, 2016 were as follows:

(Dollars In Thousands)	Pass		Special Mention		Substandard Accruing		Substandard Nonaccrual		Total
Construction loans:
Residential	$	12,472	$	−	$	−	$	−	$	12,472
Land acquisition, development & commercial		21,049		−		−		8		21,057
Real estate loans:
Residential		105,851		−		194		577		106,622
Commercial		157,818		−		1,431		1,652		160,901
Commercial, industrial, agricultural		55,008		700		−		11		55,719
Equity lines		29,235		−		−		−		29,235
Consumer		7,658		−		4		−		7,662
Total Loans	$	389,091	$	700	$	1,629	$	2,248	$	393,668

Loans by credit quality indicators as of December 31, 2015 were as follows:

(Dollars In Thousands)	Pass		Special Mention		Substandard Accruing		Substandard Nonaccrual		Total
Construction loans:
Residential	$	11,779	$	−	$	−	$	−	$	11,779
Land acquisition, development & commercial		27,429		−		−		11		27,440
Real estate loans:
Residential		95,809		4,212		247		−		100,268
Commercial		138,034		1,155		1,395		368		140,952
Commercial, industrial, agricultural		51,801		1,164		−		47		53,012
Equity lines		26,376		−		−		−		26,376
Consumer		7,523		−		8		−		7,531
Total Loans	$	358,751	$	6,531	$	1,650	$	426	$	367,358

At June 30, 2016 and December 31, 2015, the Company had no loans classified as Doubtful or Loss.