Note 4 - Allowance for Loan Losses

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Allowance for Credit Losses [Text Block]

Note

4.

Allowance for Loan Losses

The following table presents, as of

June 30, 2018,

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 , 2018	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	$	94	$	−		$	−	$	47		$	141	$	−	$	141	$	20,143	$	−	$	20,143
Land acquisition, development & commercial		311		−			−		(116	)		195		−		195		21,343		223		21,120
Real estate:				−
Residential		955		(103	)		30		126			1,008		−		1,008		134,721		623		134,098
Commercial		1,603		−			−		134			1,737		−		1,737		188,677		4,301		184,376
Commercial, industrial & agricultural		441		(35	)		1		50			457		−		457		59,591		182		59,409
Equity lines		237		−			−		2			239		−		239		29,294		421		28,873
Consumer		108		(86	)		5		108			135		−		135		7,683		−		7,683
Unallocated		9		−			−		(4	)		5		−		5		−		−		−
Total	$	3,758	$	(224	)	$	36	$	347		$	3,917	$	−	$	3,917	$	461,452	$	5,750	$	455,702

The following table presents, as of

December 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).

December 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	$	−		$	−	$	31		$	94	$	−	$	94	$	15,221	$	−	$	15,221
Land acquisition, development & commercial		173		(150	)		−		288			311		−		311		35,601		181		35,420
Real estate:
Residential		866		(293	)		−		382			955		−		955		121,649		360		121,289
Commercial		1,516		(454	)		43		498			1,603		−		1,603		173,999		4,098		169,901
Commercial, industrial & agricultural		461		(80	)		−		60			441		−		441		61,197		379		60,818
Equity lines		338		−			−		(101	)		237		−		237		28,835		299		28,536
Consumer		97		(101	)		15		97			108		−		108		7,693		−		7,693
Unallocated		122		−			−		(113	)		9		−		9		−		−		−
Total	$	3,636	$	(1,078	)	$	58	$	1,142		$	3,758	$	−	$	3,758	$	444,195	$	5,317	$	438,878

 Loans by credit quality indicators as of

June 30, 2018

were as follows:

(Dollars in Thousands)	Pass Accruing		Special Mention Accruing		Special Mention Nonaccrual		Substandard Accruing		Substandard Nonaccrual		Doubtful Nonaccrual		Total
Construction loans:
Residential	$	20,143	$	−	$	−	$	−	$	−	$	−	$	20,143
Land acquisition, development & commercial		21,035		−		266		−		42		−		21,343
Real estate loans:
Residential		133,447		488		221		326		239		−		134,721
Commercial		185,974		1,646		−		586		471		−		188,677
Commercial, industrial, agricultural		59,145		155		118		13		146		14		59,591
Equity lines		28,873		−		122		299		−		−		29,294
Consumer		7,683		−		−		−		−		−		7,683
Total Loans	$	456,300	$	2,289	$	727	$	1,224	$	898	$	14	$	461,452

   Loans by credit quality indicators as of

December 31, 2017

were as follows:

(Dollars in Thousands)	Pass		Special Mention		Substandard Accruing		Substandard Nonaccrual		Doubtful Nonaccrual		Total
Construction loans:
Residential	$	15,221	$	−	$	−	$	−	$	−	$	15,221
Land acquisition, development & commercial		31,433		3,987		−		181		−		35,601
Real estate loans:
Residential		120,575		342		559		−		173		121,649
Commercial		165,760		7,386		644		209		−		173,999
Commercial, industrial, agricultural		59,042		1,249		503		379		24		61,197
Equity lines		28,536		−		299		−		−		28,835
Consumer		7,658		−		−		35		−		7,693
Total Loans	$	428,225	$	12,964	$	2,005	$	804	$	197	$	444,195

At

June 30, 2018

and

December 31, 2017,

the Company does

not

have any loans classified as Loss.