Note 4 - Allowance for Loan Losses

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Allowance for Credit Losses [Text Block]

Note

4.

Allowance for Loan Losses

The following table presents, as of

September 30, 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).

September 30, 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	$	−		$	−	$	26		$	89	$	−	$	89	$	12,278	$	−	$	12,278
Land acquisition, development & commercial		173		−			−		50			223		−		223		33,915		−		33,915
Real estate:				−
Residential		866		−			−		4			870		−		870		117,114		648		116,466
Commercial		1,516		(436	)		41		565			1,686		−		1,686		173,713		4,141		169,572
Commercial, industrial & agricultural		461		(68	)		−		92			485		−		485		61,152		27		61,125
Equity lines		338		−			−		(93	)		245		−		245		28,914		−		28,914
Consumer		97		(59	)		17		44			99		−		99		7,724		−		7,724
Unallocated		122		−			−		(113	)		9		−		9		−		−		−
Total	$	3,636	$	(563	)	$	58	$	575		$	3,706	$	−	$	3,706	$	434,810	$	4,816	$	429,994

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

September 30, 2017

were as follows:

(Dollars in Thousands)	Pass		Special Mention		Substandard Accruing		Substandard Nonaccrual		Total
Construction loans:
Residential	$	12,278	$	−	$	−	$	−	$	12,278
Land acquisition, development & commercial		33,915		−		−		−		33,915
Real estate loans:
Residential		116,240		226		189		459		117,114
Commercial		172,818		20		664		211		173,713
Commercial, industrial, agricultural		60,495		106		524		27		61,152
Equity lines		28,914		−		−		−		28,914
Consumer		7,721		−		−		3		7,724
Total Loans	$	432,381	$	352	$	1,377	$	700	$	434,810

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

September 30, 2017

and

December 31, 2016,

the Company had

no

loans classified as Doubtful or Loss.