Note 4 - Allowance for Loan Losses

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Allowance for Credit Losses [Text Block]

Note

4.

Allowance for Loan Losses

The following table presents, as of

September 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).

September 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	$	−		$	10	$	7		$	111	$	−	$	111	$	19,062	$	−	$	19,062
Land acquisition, development & commercial		311		−			−		(97	)		214		−		214		26,048		43		26,005
Real estate:				−
Residential		955		(96	)		30		200			1,089		−		1,089		141,728		667		141,061
Commercial		1,603		−			1		147			1,751		−		1 ,751		187,894		4,264		183,630
Commercial, industrial & agricultural		441		(37	)		2		(11	)		395		−		395		54,933		180		54,753
Equity lines		237		−			−		(27	)		210		−		210		28,675		298		28,377
Consumer		108		(114	)		22		98			114		−		114		8,003		−		8,003
Unallocated		9		−			−		54			63		−		63		−		−		−
Total	$	3,758	$	(247	)	$	65	$	371		$	3,947	$	−	$	3,947	$	466,343	$	5,452	$	460,891

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

September 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	$	19,062	$	−	$	−	$	−	$	−	$	−	$	19,062
Land acquisition, development & commercial		25,465		−		82		458		43		−		26,048
Real estate loans:
Residential		140,428		369		255		385		236		55		141,728
Commercial		184,717		2,137		−		573		467		−		187,894
Commercial, industrial, agricultural		54,593		171		−		−		169		−		54,933
Equity lines		28,230		−		147		298		−		−		28,675
Consumer		8,003		−		−		−		−		−		8,003
Total Loans	$	460,498	$	2,677	$	484	$	1,714	$	915	$	55	$	466,343

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

September 30, 2018

and

December 31, 2017,

the Company does

not

have any loans classified as Loss.