Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2019

ALL by Loans Evaluated for Impairment Individually and Collectively by Type

The following table presents the ALL by loans evaluated for impairment individually and collectively by loan type as of the dates stated.

June 30, 2019	Mortgage Loans on Real Estate		Commercial and Industrial		Consumer		Total
Allowance for loan losses applicable to:
Loans individually evaluated for impairment	$	987	$	—	$	119	$	1,106
Loans collectively evaluated for impairment		4,065		1,537		771		6,373
Purchased credit-impaired loans		—		—		—		—
Total allowance for loan losses	$	5,052	$	1,537	$	890	$	7,479
Loan balances applicable to:
Loans individually evaluated for impairment	$	7,358	$	—	$	119	$	7,477
Loans collectively evaluated for impairment		700,837		187,531		16,724		905,092
Purchased credit-impaired loans		5,052		—		46		5,098
Total loans	$	713,247	$	187,531	$	16,889	$	917,667
December 31, 2018
Allowance for loan losses applicable to:
Loans individually evaluated for impairment	$	1,036	$	—	$	121	$	1,157
Loans collectively evaluated for impairment		3,931		1,374		1,440		6,745
Purchased credit-impaired loans		—		—		—		—
Total allowance for loan losses	$	4,967	$	1,374	$	1,561	$	7,902
Loan balances applicable to:
Loans individually evaluated for impairment	$	7,485	$	—	$	121	$	7,606
Loans collectively evaluated for impairment		701,235		164,608		23,573		889,416
Purchased credit-impaired loans		5,277		—		46		5,323
Total loans	$	713,997	$	164,608	$	23,740	$	902,345

ALL by Loan Type

The following tables present an analysis of the change in the ALL by loan type for the periods presented.

For the Three Months Ended June 30, 2019	Mortgage Loans on Real Estate			Commercial and Industrial			Consumer			Total
Beginning Balance	$	5,259		$	1,406		$	1,193		$	7,858
Charge-offs		(105	)		—			(411	)		(516	)
Recoveries		18			—			57			75
Provision (recovery of)		(120	)		131			51			62
Ending Balance	$	5,052		$	1,537		$	890		$	7,479

For the Three Months Ended June 30, 2018	Mortgage Loans on Real Estate			Commercial and Industrial			Consumer			Total
Beginning Balance	$	4,190		$	1,043		$	2,690		$	7,923
Charge-offs		(83	)		(101	)		(335	)		(519	)
Recoveries		16			—			41			57
Provision (recovery of)		121			2			(471	)		(348	)
Ending Balance	$	4,244		$	944		$	1,925		$	7,113

For the Six Months Ended June 30, 2019	Mortgage Loans on Real Estate			Commercial and Industrial			Consumer			Total
Beginning Balance	$	4,967		$	1,374		$	1,561		$	7,902
Charge-offs		(159	)		-			(819	)		(978	)
Recoveries		43			1			135			179
Provision		201			162			13			376
Ending Balance	$	5,052		$	1,537		$	890		$	7,479

For the Six Months Ended June 30, 2018	Mortgage Loans on Real Estate			Commercial and Industrial			Consumer			Total
Beginning Balance	$	3,864		$	878		$	3,028		$	7,770
Charge-offs		(114	)		(116	)		(677	)		(907	)
Recoveries		43			—			235			278
Provision (recovery of)		451			182			(661	)		(28	)
Ending Balance	$	4,244		$	944		$	1,925		$	7,113

Company's Recorded Investment and Borrowers' Unpaid Principal Balances for Impaired Loans, Excluding PCI Loans, with Associated ALL Amount

The following table presents the Company’s recorded investment and the borrowers’ unpaid principal balances for impaired loans, excluding PCI loans, with the associated ALL amount, if applicable, by loan type as of the dates stated.

	As of June 30, 2019						As of December 31, 2018
	Recorded Investment		Borrowers’ Unpaid Principal Balance		Related Allowance		Recorded Investment		Borrowers’ Unpaid Principal Balance		Related Allowance
With no related allowance:
Construction, land and land development	$	328	$	399	$	—	$	335	$	406	$	—
Commercial mortgages (non-owner occupied)		—		—		—		386		386		—
Commercial mortgages (owner occupied)		429		429		—		—		—		—
Residential first mortgages		1,385		1,385		—		—		—		—
Residential revolving and junior mortgages		—		—		—		1,028		1,028		—
Commercial and industrial		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total impaired loans with no related allowance		2,142		2,213		—		1,749		1,820		—
With an allowance recorded:
Construction, land and land development		176		176		39		275		275		132
Commercial mortgages (non-owner occupied)		434		434		34		443		443		18
Commercial mortgages (owner occupied)		1,058		1,058		54		1,069		1,069		57
Residential first mortgages		3,048		3,048		644		3,447		3,447		565
Residential revolving and junior mortgages		500		500		216		502		502		264
Commercial and industrial		—		—		—		—		—		—
Consumer		119		119		119		121		121		121
Total impaired loans with allowance recorded		5,335		5,335		1,106		5,857		5,857		1,157
Total impaired loans:
Construction, land and land development		504		575		39		610		681		132
Commercial mortgages (non-owner occupied)		434		434		34		829		829		18
Commercial mortgages (owner occupied)		1,487		1,487		54		1,069		1,069		57
Residential first mortgages		4,433		4,433		644		3,447		3,447		565
Residential revolving and junior mortgages		500		500		216		1,530		1,530		264
Commercial and industrial		—		—		—		—		—		—
Consumer		119		119		119		121		121		121
Total impaired loans	$	7,477	$	7,548	$	1,106	$	7,606	$	7,677	$	1,157

The following table presents the average recorded investment and interest income recognized for impaired loans, excluding PCI loans, by loan type for the periods presented.

	For the Three Months Ended								For the Six Months Ended
	June 30, 2019				June 30, 2018				June 30, 2019				June 30, 2018
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance:
Construction, land and land development	$	330	$	4	$	84	$	—	$	332	$	9	$	165	$	1
Commercial mortgages (non-owner occupied)		—		—		—		—		—		—		—		—
Commercial mortgages (owner occupied)		405		7		1,385		20		399		13		1,380		32
Residential first mortgages		1,389		18		1,513		24		1,391		36		1,471		41
Residential revolving and junior mortgages		—		—		415		1		—		—		415		3
Commercial and industrial		—		—		—		—		—		—		—		—
Consumer		—		—		—		3		—		—		—		—
Total impaired loans with no allowance		2,124		29		3,397		48		2,122		58		3,431		77
With an allowance recorded:
Construction, land and land development		225		10		571		8		241		15		553		17
Commercial mortgages (non-owner occupied)		435		4		224		—		437		27		149		—
Commercial mortgages (owner occupied)		1,061		14		538		8		1,063		28		541		15
Residential first mortgages		3,055		34		2,623		36		3,065		65		2,386		67
Residential revolving and junior mortgages		501		3		131		2		501		6		123		4
Commercial and industrial		—		—		—		—		—		—		—		—
Consumer		120		2		—		—		120		5		—		5
Total impaired loans with allowance recorded		5,397		67		4,087		54		5,427		146		3,752		108
Total impaired loans:
Construction, land and land development		555		14		655		8		573		24		718		18
Commercial mortgages (non-owner occupied)		435		4		224		—		437		27		149		—
Commercial mortgages (owner occupied)		1,466		21		1,923		28		1,462		41		1,921		47
Residential first mortgages		4,444		52		4,136		60		4,456		101		3,857		108
Residential revolving and junior mortgages		501		3		546		3		501		6		538		7
Commercial and industrial		—		—		—		—		—		—		—		—
Consumer		120		2		—		3		120		5		—		5
Total impaired loans	$	7,521	$	96	$	7,484	$	102	$	7,549	$	204	$	7,183	$	185

Reconciliation of Nonaccrual Loans to Impaired Loans

The following table presents a reconciliation of nonaccrual loans to impaired loans as of the dates stated.

	June 30, 2019			December 31, 2018
Nonaccrual loans	$	4,577		$	5,206
Nonaccrual loans collectively evaluated for impairment		(1,470	)		(2,040	)
Nonaccrual impaired loans		3,107			3,166
TDRs on accrual		4,046			4,115
Other impaired loans on accrual		324			325
Total impaired loans	$	7,477		$	7,606

Summary of Troubled Debt Restructurings

TDRs are considered impaired and are individually evaluated for impairment for the ALL. The following tables present by loan type information related to loans modified as TDRs for the periods presented.

	For the Three Months Ended						For the Three Months Ended
	June 30, 2019						June 30, 2018
	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial Mortgages (Owner Occupied) (1)		1	$	48	$	52		—	$	—	$	—
Residential first mortgages (1)		—	$	—	$	—		1	$	30	$	30

(1)	Modifications were an extension of the loan term.

	For the Six Months Ended						For the Six Months Ended
	June 30, 2019						June 30, 2018
	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial Mortgages (Owner Occupied) (1)		1	$	48	$	52		—	$	—	$	—
Residential first mortgages (1)		—	$	—	$	—		4	$	590	$	594

(1)	Modifications were an extension of the loan term.

Summary of Roll Forward of Accruing and Nonaccrual TDRs

The following table presents a roll-forward of accruing and nonaccrual TDRs for the period presented.

	Accruing			Nonaccrual			Total
Balance as of December 31, 2018	$	4,115		$	1,477		$	5,592
Charge-offs		—			—			—
Payments and other adjustments		(52	)		(106	)		(158	)
New TDR designation		52			—			52
Release TDR designation		—			—			—
Transfer		(69	)		69			—
Balance as of June 30, 2019	$	4,046		$	1,440		$	5,486