Note 4 - Loans Receivable

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

4. L oans Receivable

       

The following table sets forth the Company’s gross loans by major categories as of

December 31, 2017

and

2016:

(dollars in thousands)	December 31, 201 7			December 31, 201 6
Commercial real estate	$	433,304		$	378,519
Construction and land development		104,617			61,453
Commercial and industrial		173,343			174,744
Owner occupied real estate		309,838			276,986
Consumer and other		76,183			63,660
Residential mortgage		64,764			9,682
Total loans receivable		1,162,049			965,044
Deferred costs (fees)		229			(72	)
Allowance for loan losses		(8,599	)		(9,155	)
Net loans receivable	$	1,153,679		$	955,817

The Company disaggregates its loan portfolio into groups of loans with similar risk characteristics for purposes of estimating the allowance for loan losses.

The Company

’s loan groups include commercial real estate, construction and land development, commercial and industrial, owner occupied real estate, consumer, and residential mortgages. The remaining loan groups are also considered classes for purposes of monitoring and assessing credit quality based on certain risk characteristics.

Included in loans are loans due from directors and other related parties

of

$8.9

million at

December 31, 2017,

$7.9

million at

December 31, 2016,

and

$8.5

million at

December 31, 2015.  

The Board of Directors approves loans to individual directors to confirm that collateral requirements, terms and rates are comparable to other borrowers and are in compliance with underwriting policies. The following presents the activity in amount due from directors and other related parties for the years ended

December 31, 2017,

2016,

and

2015.

(dollars in thousands)	December 31, 201 7			December 31, 201 6			December 31, 201 5
Balance at beginning of year	$	7,862		$	8,521		$	8,753
Additions		1,896			-			295
Repayments		(838	)		(659	)		(527	)
Balance at end of year	$	8,920		$	7,862		$	8,521