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Subsequent Event
12 Months Ended
Dec. 31, 2015
Subsequent Event

Note 25. Subsequent Event

On February 23, 2016, one of the Bank’s commercial borrowers pleaded guilty in a federal court to “Willful Failure to Collect or Pay Over Employment Tax” and admitted to regularly and deliberately creating false financial statements for submission to financial institutions in order to encourage banks to lend new funds to his companies, or to enable the renewal of existing loans. The Bank had five loans to this borrower totaling $2.2 million, all of which have been placed on nonaccrual status, classified as substandard and evaluated for impairment as of December 31, 2015. On March 16 and 17, 2016, the Bank foreclosed on related properties used as collateral for certain of the loans. An additional $691 thousand of impairment reserves have been added to the allowance for loan losses effective December 31, 2015.