Note 4.Allowance for Loan and Lease Losses

The following tables present the detail of the allowance and the LHFI portfolio disaggregated by loan portfolio classification as of September 30, 2017, December 31, 2016 and September 30, 2016.

Allowance for Loan and Lease Losses

As of and for the three months ended September 30, 2017


			Construction
	Commercial		and land		Commercial		Multi-		Residential				Tax
(In thousands)	real estate		development		and industrial		family		real estate		Leases		certificates		Consumer		Unallocated		Total
Beginning balance	$	3,161	$	2,273	$	1,371	$	344	$	623	$	2,292	$	170	$	28	$	—	$	10,262
Charge-offs		—		—		—		—		—		(322)		(15)		—		—		(337)
Recoveries		—		—		—		—		6		33		—		—		—		39
Provision (credit)		(7)		(264)		(45)		43		(5)		442		(19)		14		—		159
Ending balance	$	3,154	$	2,009	$	1,326	$	387	$	624	$	2,445	$	136	$	42	$	—	$	10,123
Ending balance: related to loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	15	$	225	$	—	$	—	$	—	$	240
Ending balance: related to loans collectively evaluated for impairment	$	3,154	$	2,009	$	1,326	$	387	$	609	$	2,220	$	136	$	42	$	—	$	9,883

Allowance for Loan and Lease Losses

As of and for the nine months ended September 30, 2017


			Construction
	Commercial		and land		Commercial		Multi-		Residential				Tax
(In thousands)	real estate		development		and industrial		family		real estate		Leases		certificates		Consumer		Unallocated		Total
Beginning balance	$	3,295	$	2,294	$	1,346	$	263	$	656	$	2,295	$	242	$	29	$	—	$	10,420
Charge-offs		(79)		—		—		—		(8)		(1,119)		(23)		—		—		(1,229)
Recoveries		—		351		—		—		21		47		—		—		—		419
(Credit) provision		(62)		(636)		(20)		124		(45)		1,222		(83)		13		—		513
Ending balance	$	3,154	$	2,009	$	1,326	$	387	$	624	$	2,445	$	136	$	42	$	—	$	10,123
Ending balance: related to loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	15	$	225	$	—	$	—	$	—	$	240
Ending balance: related to loans collectively evaluated for impairment	$	3,154	$	2,009	$	1,326	$	387	$	609	$	2,220	$	136	$	42	$	—	$	9,883

Loans Evaluated for Impairment

As of September 30, 2017


			Construction
	Commercial		and land		Commercial		Multi-		Residential				Tax
	real estate		development		and industrial		family		real estate		Leases		certificates		Consumer		Unallocated		Total
(In thousands)
Ending balance	$	256,452	$	78,389	$	110,861	$	33,751	$	55,643	$	55,270	$	1,290	$	2,909	$	—	$	594,565
Ending balance: individually evaluated for impairment	$	1,496	$	128	$	1,562	$	—	$	591	$	1,017	$	469	$	—	$	—	$	5,263
Ending balance: collectively evaluated for impairment	$	254,956	$	78,261	$	109,299	$	33,751	$	55,052	$	54,253	$	821	$	2,909	$	—	$	589,302

Allowance for Loan and Lease Losses and Loans Evaluated for Impairment

As of and for the year ended December 31, 2016


			Construction
	Commercial		and land		Commercial		Multi-		Residential				Tax
(In thousands)	real estate		development		and industrial		family		real estate		Leases		certificates		Consumer		Unallocated		Total
Beginning balance	$	3,622	$	1,674	$	1,513	$	171	$	586	$	1,749	$	347	$	27	$	—	$	9,689
Charge-offs		(84)		—		(107)		—		(40)		(930)		(139)		—		—		(1,300)
Recoveries		201		306		174		—		35		57		14		2		—		789
(Credit) provision		(444)		314		(234)		92		75		1,419		20		—		—		1,242
Ending balance	$	3,295	$	2,294	$	1,346	$	263	$	656	$	2,295	$	242	$	29	$	—	$	10,420
Ending balance: related to loans individually evaluated for impairment	$	3	$	—	$	—	$	—	$	17	$	340	$	8	$	—	$	—	$	368
Ending balance: related to loans collectively evaluated for impairment	$	3,292	$	2,294	$	1,346	$	263	$	639	$	1,955	$	234	$	29	$	—	$	10,052
Loan Balances
Ending balance	$	261,561	$	83,369	$	108,146	$	23,389	$	56,899	$	61,838	$	3,705	$	3,102	$	—	$	602,009
Ending balance: individually evaluated for impairment	$	904	$	144	$	2,105	$	—	$	653	$	1,242	$	1,907	$	—	$	—	$	6,955
Ending balance: collectively evaluated for impairment	$	260,657	$	83,225	$	106,041	$	23,389	$	56,246	$	60,596	$	1,798	$	3,102	$	—	$	595,054

Allowance for Loan and Lease Losses

As of and for the three months ended September 30, 2016


			Construction
	Commercial		and land		Commercial		Multi-		Residential				Tax
(In thousands)	real estate		development		and industrial		family		real estate		Leases		certificates		Consumer		Unallocated		Total
Beginning balance	$	3,342	$	1,991	$	1,365	$	231	$	647	$	2,052	$	358	$	22	$	—	$	10,008
Charge-offs		(7)		—		—		—		—		(310)		(108)		—		—		(425)
Recoveries		17		15		32		—		4		18		6		1		—		93
(Credit) provision		(12)		160		17		36		(76)		426		29		(2)		—		578
Ending balance	$	3,340	$	2,166	$	1,414	$	267	$	575	$	2,186	$	285	$	21	$	—	$	10,254
Ending balance: related to loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	18	$	168	$	—	$	—	$	—	$	186
Ending balance: related to loans collectively evaluated for impairment	$	3,340	$	2,166	$	1,414	$	267	$	557	$	2,018	$	285	$	21	$	—	$	10,068

Allowance for Loan and Lease Losses

As of and for the nine months ended September 30, 2016


			Construction
	Commercial		and land		Commercial		Multi-		Residential				Tax
(In thousands)	real estate		development		and industrial		family		real estate		Leases		certificates		Consumer		Unallocated		Total
Beginning balance	$	3,622	$	1,674	$	1,513	$	171	$	586	$	1,749	$	347	$	27	$	—	$	9,689
Charge-offs		(84)		—		(108)		—		(40)		(757)		(139)		—		—		(1,128)
Recoveries		201		273		159		—		23		35		14		1		—		706
(Credit) provision		(399)		219		(150)		96		6		1,159		63		(7)		—		987
Ending balance	$	3,340	$	2,166	$	1,414	$	267	$	575	$	2,186	$	285	$	21	$	—	$	10,254
Ending balance: related to loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	18	$	168	$	—	$	—	$	—	$	186
Ending balance: related to loans collectively evaluated for impairment	$	3,340	$	2,166	$	1,414	$	267	$	557	$	2,018	$	285	$	21	$	—	$	10,068

Loans Evaluated for Impairment

As of September 30, 2016


			Construction
	Commercial		and land		Commercial		Multi-		Residential				Tax
	real estate		development		and industrial		family		real estate		Leases		certificates		Consumer		Unallocated		Total
(In thousands)
Ending balance	$	253,074	$	74,885	$	106,254	$	23,831	$	49,061	$	62,671	$	3,803	$	2,239	$	—	$	575,818
Ending balance: individually evaluated for impairment	$	852	$	144	$	2,120	$	—	$	668	$	806	$	745	$	—	$	—	$	5,335
Ending balance: collectively evaluated for impairment	$	252,222	$	74,741	$	104,134	$	23,831	$	48,393	$	61,865	$	3,058	$	2,239	$	—	$	570,483

The following tables detail the loans that were evaluated for impairment by loan classification at September 30, 2017 and December 31, 2016.


	At September 30, 2017
	Unpaid
	principal		Recorded		Related
(In thousands)	balance		investment		allowance
With no related allowance recorded:
Commercial real estate	$	1,496	$	1,496	$	—
Construction and land development		531		128		—
Commercial and industrial		1,603		1,562		—
Residential real estate		130		80		—
Tax certificates		4,814		469		—
Total:	$	8,574	$	3,735	$	—


With an allowance recorded:
Residential real estate		635		511		15
Leases		1,017		1,017		225
Total:	$	1,652	$	1,528	$	240


	At and for the year ended December 31, 2016
	Unpaid						Average		Interest		Interest income
	principal		Recorded		Related		recorded		income		recognized
(In thousands)	balance		investment		allowance		investment		recognized		cash basis
With no related allowance recorded:
Commercial real estate	$	362	$	362	$	—	$	923	$	—	$	—
Construction and land development		546		144		—		145		—		—
Commercial and industrial		2,209		2,105		—		2,296		107		—
Residential real estate		133		83		—		45		4		—
Tax certificates		2,165		1,752		—		1,019		—		—
Total:	$	5,415	$	4,446	$	—	$	4,428	$	111	$	—

With an allowance recorded:
Commercial real estate	$	936	$	542	$	3	$	168	$	—	$	—
Commercial and industrial		—		—		—		17		—		—
Residential real estate		668		570		17		695		—		—
Leases		1,242		1,242		340		910		—		—
Tax certificates		4,202		155		8		26		—		—
Total:	$	7,048	$	2,509	$	368	$	1,816	$	—	$	—

The following tables present the average recorded investment in impaired loans and the related interest income recognized for the three and nine months ended September 30, 2017 and 2016.


	For the three months ended September 30, 2017						For the nine months ended September 30, 2017
	Average		Interest		Interest income		Average		Interest		Interest income
	recorded		income		recognized		recorded		income		recognized
(In thousands)	investment		recognized		cash basis		investment		recognized		cash basis
Commercial real estate	$	882	$	—	$	—	$	1,126	$	—	$	—
Construction and land development		128		—		—		133		—		—
Commercial and industrial		1,667		26		—		1,880		76		—
Residential real estate		718		2		—		590		6		—
Leases		1,359		—		—		1,049		—		—
Tax certificates		530		—		—		1,087		—		—
Total:	$	5,284	$	28	$	—	$	5,865	$	82	$	—


	For the three months ended September 30, 2016						For the nine months ended September 30, 2016
	Average		Interest		Interest income		Average		Interest		Interest income
	recorded		income		recognized		recorded		income		recognized
(In thousands)	investment		recognized		cash basis		investment		recognized		cash basis
Commercial real estate	$	867	$	—	$	—	$	1,185	$	—	$	—
Construction and land development		144		—		—		145		—		—
Commercial and industrial		2,258		28		—		2,373		85		—
Residential real estate		670		—		—		765		—		—
Leases		993		—		—		873		—		—
Tax certificates		903		—		—		991		—		—
Total:	$	5,835	$	28	$	—	$	6,332	$	85	$	—