Note 4 - Allowance for Loan Losses

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Allowance for Credit Losses [Text Block]

N

ote

4.

Allowance for Loan Losses

The following table presents, as of

March

31,

2017,

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).

March 31, 2017	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	$	63	$	−		$	−	$	4		$	67	$	−	$	67	$	10,429	$	−	$	10,429
Land acquisition, development & commercial		173		−			−		22			195		−		195		29,662		−		29,662
Real estate:				−
Residential		866		−			−		38			904		−		904		111,988		769		111,219
Commercial		1,516		−			33		(22	)		1,527		17		1,510		175,654		4,309		171,345
Commercial, industrial & agricultural		461		−			−		7			468		−		468		61,644		29		61,615
Equity lines		338		−			−		(15	)		323		−		323		30,823		−		30,823
Consumer		97		(16	)		3		11			95		−		95		7,843		−		7,843
Unallocated		122		−			−		25			147		−		147		−		−		−
Total	$	3,636	$	(16	)	$	36	$	70		$	3,726	$	17	$	3,709	$	428,043	$	5,107	$	422,936

The following table presents, as of

December

31,

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).

December 31, 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	$	−		$	−	$	(20	)	$	63	$	−	$	63	$	10,204	$	−	$	10,204
Land acquisition, development & commercial		187		(2	)		−		(12	)		173		−		173		27,480		−		27,480
Real estate:
Residential		1,047		(4	)		45		(222	)		866		−		866		111,626		770		110,856
Commercial		1,001		(606	)		−		1,121			1,516		17		1,499		172,248		6,495		165,753
Commercial, industrial & agricultural		531		(34	)		−		(36	)		461		−		461		59,809		11		59,798
Equity lines		277		(99	)		10		150			338		−		338		29,956		−		29,956
Consumer		85		(103	)		49		66			97		−		97		7,668		−		7,668
Unallocated		87		−			−		35			122		−		122		−		−		−
Total	$	3,298	$	(848	)	$	104	$	1,082		$	3,636	$	17	$	3,619	$	418,991	$	7,276	$	411,715

Loans by credit quality indicators as of

March

31,

2017

were as follows:

(Dollars in Thousands)	Pass		Special Mention		Substandard Accruing		Substandard Nonaccrual		Total
Construction loans:
Residential	$	10,429	$	−	$	−	$	−	$	10,429
Land acquisition, development & commercial		29,662		−		−		−		29,662
Real estate loans:
Residential		111,219		−		192		577		111,988
Commercial		174,786		−		538		330		175,654
Commercial, industrial, agricultural		60,950		85		580		29		61,644
Equity lines		30,823		−		−		−		30,823
Consumer		7,843		−		−		−		7,843
Total Loans	$	425,712	$	85	$	1,310	$	936	$	428,043

Loans by credit quality indicators as of

December

31,

2016

were as follows:

(Dollars in Thousands)	Pass		Special Mention		Substandard Accruing		Substandard Nonaccrual		Total
Construction loans:
Residential	$	10,204	$	−	$	−	$	−	$	10,204
Land acquisition, development & commercial		27,480		−		−		−		27,480
Real estate loans:
Residential		110,856		−		193		577		111,626
Commercial		171,369		−		543		336		172,248
Commercial, industrial, agricultural		59,120		78		600		11		59,809
Equity lines		29,956		−		−		−		29,956
Consumer		7,668		−		−		−		7,668
Total Loans	$	416,653	$	78	$	1,336	$	924	$	418,991

At

March

31,

2017

and

December

31,

2016,

the Company had

no

loans classified as Doubtful or Loss.