(3)	Loans Receivable, Net:

The Company uses the following loan segments as described below:

•

One-to-four family first mortgages are closed-end loans secured by residential housing. Loans may be either owner or non-owneroccupied properties. If the loan is owner-occupied, the loan is analyzed and under-written as a consumer loan. Loan terms may be up to 30 years.

•

Home equity lines of credit may be first or second mortgages secured by one-to-four family properties. Home equity loans carry a variable rate and typically are open ended for a period not to exceed ten years with a fifteen year final maturity. Loans secured by home equity lines of credit are under-written under the Company’s consumer loan guidelines.

•

Junior liens are closed-end loans secured by one-to-four family residences with a fixed or variable rate. Typically, the collateral for these loans are owner occupied units with a subordinate lien. Loans secured by junior liens are under-written under the Company’s consumer loan guidelines.

•

Multi-family loans are closed-end loans secured by residential housing with five or more units in a single building. Multi-family loans may carry a variable rate of interest or the interest rate on the loan is a fixed rate (usually five years). After the initial fixed rate period, the loan reverts to a variable rate or has balloon maturity. Multi-family loans have amortization terms of up to twenty years and are under-written under the Company’s commercial loan underwriting guidelines.

•

Constructions loans may consist of residential or commercial properties and carry a fixed or variable rate for the term of the construction period. Construction loans have a maturity of between twelve and twenty-four months depending on the type of property. After the construction period, loans are amortized over a twenty-year period. All construction loans are under written under the Company’s commercial loan underwriting guidelines for the type of property being constructed.

•

Land loans consist of properties currently under development, land held for future development and land held for recreational purposes. Land loans used for recreational purposes are amortized for twenty years and typically carry a fixed rate of interest for one-to-five years with a balloon maturity or floating rate period to follow and are under-written under the Company’s commercial loan underwriting guidelines.

•

Non-residential real estate loans are secured by commercial real estate properties and may be either owner or non-owner occupied. The loans typically have a twenty year maturity and may be fixed for a period of five to ten years. After the initial fixed rate period, the note will either revert to a one year adjustable rate loan or have a balloon maturity. Loans secured by non-residential real estate are under-written under the Company’s commercial loan underwriting standards.

•

Loans classified as farmland by the Company include properties that are used exclusively for the production of grain, livestock, poultry or swine. Loans secured by farmland have a maturity of up to twenty years and carry a fixed rate of interest for five to ten years. Loans secured by farmland are under-written under the Company’s commercial loan underwriting guidelines.

•

The Company originates secured and unsecured consumer loans. Collateral for consumer loans may include deposits, brokerage accounts, automobiles and other personal items. Consumer loans are typically fixed for a term of one to five years and are under-written using the Company’s consumer loan policy.

•

The Company originates unsecured and secured commercial loans. Secured commercial loans may have business inventory, accounts receivable and equipment as collateral. The typical customer may include all forms of manufacturing, retail and wholesale sales, professional services and various forms of agri-business interest. Commercial loans may be fixed or variable rate and typically have terms between one and five years.

Set forth below is selected data relating to the composition of the loan portfolio by type of loan at December 31, 2018 and December 31, 2017:


	December 31, 2018			December 31, 2017
Real estate loans:
One-to-four family (closed end) first mortgages	$	175,638		$	163,565
Home equity lines of credit		32,781			35,697
Junior liens (closed end)		1,037			1,184
Multi-family		26,067			37,445
Construction		38,700			30,246
Land		12,175			14,873
Non-residential real estate		242,390			224,952
Farmland		34,041			36,851

Total mortgage loans		562,829			544,813

Consumer loans		8,442			8,620
Commercial loans		92,466			88,938

Total other loans		100,908			97,558

Total loans, gross		663,737			642,371

Deferred loan cost, net of fees		(419	)		(443	)

Less allowance for loan losses		(4,536	)		(4,826	)

Total loans	$	658,782		$	637,102

Although the Company has a diversified loan portfolio, 84.8% of the portfolio was concentrated in loans secured by real estate at December 31, 2018 and December 31, 2017. At December 31, 2018 and December 31, 2017, the majority of these loans are located within the Company’s general operating areas of Western Kentucky and Middle and Western Tennessee.

Risk Grade Classifications

The Company uses the following risk definitions for commercial loan risk grades:

Excellent - Loans in this category are to persons or entities of unquestioned financial strength, a highly liquid financial position, with collateral that is liquid and well margined. These borrowers have performed without question on past obligations, and the Bank expects their performance to continue. Internally generated cash flow covers current maturities of long-term debt by a substantial margin. Loans secured by Bank certificates of deposit and savings accounts, with appropriate holds placed on the accounts, are to be rated in this category.

Very Good - These are loans to persons or entities with strong financial condition and above-average liquidity who have previously satisfactorily handled their obligations with the Bank. Collateral securing the Bank’s debt is margined in accordance with policy guidelines. Internally generated cash flow covers current maturities of long-term debt more than adequately. Unsecured loans to individuals supported by strong financial statements and on which repayment is satisfactory may be included in this classification.

Satisfactory - Assets of this grade conform to substantially all the Bank’s underwriting criteria and evidence an average level of credit risk; however, such assets display more susceptibility to economic, technological or political changes since they lack the above average financial strength of credits rated Very Good. Borrower’s repayment capacity is considered to be adequate. Credit is appropriately structured and serviced; payment history is satisfactory.

Acceptable - Assets of this grade conform to most of the Bank’s underwriting criteria and evidence an acceptable, though higher than average, level of credit risk; however, these loans have certain risk characteristics which could adversely affect the borrower’s ability to repay given material adverse trends. Loans in this category require an above average level of servicing and show more reliance on collateral and guaranties to preclude a loss to the Bank should material adverse trends develop. If the borrower is a company, its earnings, liquidity and capitalization are slightly below average when compared to its peers.

Watch - These loans are characterized by borrowers who have marginal cash flow, marginal profitability, or have experienced an unprofitable year and a declining financial condition. The borrower has in the past satisfactorily handled debts with the Bank, but in recent months has either been late, delinquent in making payments, or made sporadic payments. While the Bank continues to be adequately secured, margins have decreased or are decreasing, despite the borrower’s continued satisfactory condition. Other characteristics of borrowers in this class include inadequate credit information, weakness of financial statement and repayment capacity, but with collateral that appears to limit exposure. This classification includes loans to established borrowers that are reasonably margined by collateral, but where potential for improvement in financial capacity appears limited.

All loans with a risk classification of watch or better are considered a pass credit.

Special Mention - Loans in this category have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deteriorating prospects for the asset or in the institution’s credit position at some future date. Borrowers may be experiencing adverse operating trends or market conditions. Non-financial reasons for rating a credit exposure Special Mention include, but are not limited to: management problems, pending litigations, ineffective loan agreement and/or inadequate loan documentation, structural weaknesses and/or lack of control over collateral.

Substandard - A substandard asset is inadequately protected by the current sound worth or paying capacity of the debtor or the collateral pledged. There exists one or more well defined weaknesses that jeopardize the liquidation of the debt. There is a distinct possibility the Bank will experience some loss if the deficiencies are not corrected.

Doubtful - A loan classified as doubtful has all the weaknesses inherent in a loan classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. These are poor quality loans in which neither the collateral, if any, nor the financial condition of the borrower presently ensure collectability in full in a reasonable period of time; in fact, there is permanent impairment in the collateral securing the Bank’s loan. These loans are in a work-out status and have a defined work-out strategy.

Loss - Loans classified as loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. The Bank takes losses in the period in which they become uncollectible.

The following credit risk standards are assigned to consumer loans:

Satisfactory - All consumer open-end and closed-end retail loans shall have an initial risk grade assigned of 3 - Satisfactory. All consumer loans classified as satisfactory as classified as a pass credit.

Substandard - All consumer open-end and closed-end retail loans past due 90 cumulative days from the contractual date will be classified as 7 - Substandard. If a consumer/retail loan customer files bankruptcy, the loan will be classified as 7 - Substandard regardless of payment history.

Loss - All closed-end retail loans that become past due 120 cumulative days and open-end retail loans that become past due 180 cumulative days from the contractual due date will be charged off as loss assets. The charge-off will be taken by the end of the month in which the 120-day or 180-day time period elapses. All losses in retail credit will be recognized when the affiliate becomes aware of the loss, but in no case should the charge off exceed the time frames stated within this policy.

Loans by classification type and credit risk indicator at December 31, 2018 were as follows:


			Special
	Pass		Mention		Substandard		Doubtful		Total
One-to-four family mortgages	$	174,973		—		665		—		175,638
Home equity line of credit		32,684		—		97		—		32,781
Junior liens		1,033		—		4		—		1,037
Multi-family		26,067		—		—		—		26,067
Construction		38,548		152		—		—		38,700
Land		12,175		—		—		—		12,175
Non-residential real estate		232,289		596		9,505		—		242,390
Farmland		33,808		233		—		—		34,041
Consumer loans		8,233		—		209		—		8,442
Commercial loans		85,433		3,190		3,843		—		92,466

Total	$	645,243		4,171		14,323		—		663,737


Loans by classification type and credit risk indicator at December 31, 2017 were as follows:

			Special
	Pass		Mention		Substandard		Doubtful		Total
One-to-four family mortgages	$	162,993		—		572		—		163,565
Home equity line of credit		35,285		—		412		—		35,697
Junior liens		1,184		—		—		—		1,184
Multi-family		37,445		—		—		—		37,445
Construction		30,246		—		—		—		30,246
Land		14,318		—		555		—		14,873
Non-residential real estate		216,901		979		7,072		—		224,952
Farmland		35,253		1,147		451		—		36,851
Consumer loans		8,376		—		244		—		8,620
Commercial loans		83,892		3,572		1,474		—		88,938

Total	$	625,893		5,698		10,780		—		642,371

Impaired loans by classification type and the related valuation allowance amounts at December 31, 2018 were as follows:


							For the year ended
	At December 31, 2018						December 31, 2018
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
Impaired loans with no specific allowance

One-to-four family mortgages	$	—		—		—		710		27
Home equity line of credit		—		—		—		261		4
Junior liens		—		—		—		2		—
Multi-family		—		—		—		—		—
Construction		—		—		—		—		—
Land		—		—		—		312		—
Non-residential real estate		9,174		9,174		—		5,973		693
Farmland		—		—		—		111		—
Consumer loans		—		—		—		5		—
Commercial loans		3,452		3,452		—		2,333		234

Total		12,626		12,626		—		9,707		958

Impaired loans with a specific allowance

One-to-four family mortgages	$	274		274		13		55		12
Home equity line of credit		—		—		—		—		—
Junior liens		—		—		—		—		—
Multi-family		—		—		—		—		—
Construction		—		—		—		—		—
Land		—		—		—		—		—
Non-residential real estate		—		—		—		1,115		—
Farmland		—		—		—		—		—
Consumer loans		208		208		52		284		—
Commercial loans		141		141		141		793		23

Total		623		623		206		2,247		35

Total impaired loans	$	13,249		13,249		206		11,954		993

Impaired loans by classification type and the related valuation allowance amounts at December 31, 2017 were as follows:


							For the year ended
	At December 31, 2017						December 31, 2017
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
Impaired loans with no specific allowance

One-to-four family mortgages	$	257		257		—		1,235		35
Home equity line of credit		—		—		—		447		26
Junior liens		—		—		—		6		—
Multi-family		—		—		—		1,135		—
Construction		—		—		—		—		—
Land		515		515		—		837		44
Non-residential real estate		7,086		7,086		—		8,979		395
Farmland		444		444		—		1,094		35
Consumer loans		—		—		—		8		2
Commercial loans		875		875		—		1,571		46

Total		9,177		9,177		—		15,312		583

Impaired loans with a specific allowance

One-to-four family mortgages	$	—		—		—		—		—
Home equity line of credit		—		—		—		—		—
Junior liens		—		—		—		—		—
Multi-family		—		—		—		—		—
Construction		—		—		—		—		—
Land		—		—		—		4,006		—
Non-residential real estate		2		2		2		88		2
Farmland		—		—		—		195		—
Consumer loans		217		217		54		248		—
Commercial loans		541		541		233		479		13

Total		760		760		289		5,016		15

Total impaired loans	$	9,937		9,937		289		20,328		598

The average recorded investment in impaired loans and income earned on impaired loans for the year ended December 31, 2016 was $31.6 million and $1.5 million, respectively.

Allowance for Loan Losses

A loan is considered to be impaired when management determines that it is probable that the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. The value of individually impaired loans is measured based on the present value of expected payments or using the fair value of the collateral if the loan is collateral dependent.

The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis. A management reporting system supplements the review process by providing the Company with frequent reports related to loan production, loan quality, concentrations of credit, loan delinquencies and non-performing and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions.

Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. The Company also utilizes third-party experts to provide insight and guidance about economic conditions and trends affecting market areas it serves. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. At December 31, 2018, approximately $96.6 million of the outstanding principal balance of the Company’s non-residential real estate loans were secured by owner-occupied properties, approximately $145.8 million was secured by non-owner occupied properties

At December 31, 2017, approximately $95.6 million of the outstanding principal balance of the Company’s non-residential real estate loans were secured by owner-occupied properties, approximately $129.4 million was secured by non-owner occupied properties. At December 31, 2016, approximately $78.7 million of the outstanding principal balance of the Company’s non-residential real estate loans were secured by owner-occupied properties, approximately $104.2 million was secured by non-owner occupied properties.

The following table presents the balance in the allowance for loan losses and the recorded investment in loans as of December 31, 2018 and December 31, 2017 by portfolio segment and based on the impairment method as of December 31, 2018 and December 31, 2017.


			Land
			Development /		Commercial		Residential
	Commercial		Construction		Real Estate		Real Estate		Consumer		Total
December 31, 2018:
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	141		—		—		13		52		206
Collectively evaluated for impairment		534		969		1,616		1,151		60		4,330

Total ending allowance balance	$	675		969		1,616		1,164		112		4,536

Loans:
Loans individually evaluated for impairment	$	3,593		—		9,174		274		208	$	13,249
Loans collectively evaluated for impairment		88,873		50,875		293,324		209,182		8,234		650,488

Total ending loans balance	$	92,466		50,875		302,498		209,456		8,442		663,737


			Land
			Development /		Commercial		Residential
	Commercial		Construction		Real Estate		Real Estate		Consumer		Total
December 31, 2017:
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	233		—		2		—		54		289
Collectively evaluated for impairment		614		1,384		1,468		941		130		4,537

Total ending allowance balance	$	847		1,384		1,470		941		184		4,826

Loans:
Loans individually evaluated for impairment	$	1,416		515		7,532		257		217		9,937
Loans collectively evaluated for impairment		87,522		44,604		291,716		200,189		8,403		632,434

Total ending loans balance	$	88,938		45,119		299,248		200,446		8,620		642,371

The following table provides a detail of the Company’s activity in the allowance for loan loss account allocated by loan type for the years ended December 31, 2018, December 31, 2017 and December 31, 2016:


								Provision			Ending
	Balance							for Loan			Balance
December 31, 2018	12/31/2017		Charge off			Recovery		Loss			12/31/2018
One-to-four family mortgages	$	747		(6	)		13		238			992
Home equity line of credit		189		—			9		(30	)		168
Junior liens		5		—			—		(1	)		4
Multi-family		314		—			—		(142	)		172
Construction		161		—			—		10			171
Land		1,223		(40	)		—		(386	)		797
Non-residential real estate		789		(23	)		14		513			1,293
Farmland		367		(2	)		1		(214	)		152
Consumer loans		184		(329	)		80		177			112
Commercial loans		847		(307	)		12		123			675

	$	4,826		(707	)		129		288			4,536


								Provision			Ending
	Balance							for Loan			Balance
December 31, 2017	12/31/2016		Charge off			Recovery		Loss			12/31/2017
One-to-four family mortgages	$	852		(66	)		13		(52	)		747
Home equity line of credit		260		—			12		(83	)		189
Junior liens		8		—			4		(7	)		5
Multi-family		412		—			417		(515	)		314
Construction		277		—			—		(116	)		161
Land		1,760		(2,608	)		559		1,512			1,223
Non-residential real estate		964		—			16		(191	)		789
Farmland		778		—			10		(421	)		367
Consumer loans		208		(261	)		87		150			184
Commercial loans		593		(224	)		278		200			847

	$	6,112		(3,159	)		1,396		477			4,826


								Provision			Ending
	Balance							for Loan			Balance
December 31, 2016	12/31/2015		Charge off			Recovery		Loss			12/31/2016
One-to-four family mortgages	$	1,030		—			167		(345	)		852
Home equity line of credit		201		(30	)		14		75			260
Junior liens		8		—			14		(14	)		8
Multi-family		227		(421	)		—		606			412
Construction		377		—			—		(100	)		277
Land		1,379		—			—		381			1,760
Non-residential real estate		1,139		—			10		(185	)		964
Farmland		358		—			—		420			778
Consumer loans		358		(422	)		293		(21	)		208
Commercial loans		623		(595	)		141		424			593

	$	5,700		(1,468	)		639		1,241			6,112

Non-accrual loans totaled $1.4 million and $1.3 million at December 31, 2018 and December 31, 2017, respectively. All non-accrual loans noted below are classified as substandard. Interest income foregone on such loans totaled $127,000 at December 31, 2018, $100,000 at December 31, 2017, and $108,000 at December 31, 2016, respectively. The Company is not committed to lend additional funds to borrowers whose loans have been placed on a non-accrual basis. There were no loans past due more than three months and still accruing interest as of December 31, 2018 and December 31, 2016, respectively. At December 31, 2017, there was one loan with a balance $88,000 that was past due more than ninety days and still accruing interest. At December 31, 2018 and December 31, 2017, the Company’s balances of non-accrual loans by loan type are as follows:


	12/31/2018		12/31/2017
One-to-four family first mortgages	$	62	$	266
Home equity lines of credit		98		402
Junior lien		4		4
Construction		152		—
Land		—		40
Non-residential real estate		581		—
Farmland		—		111
Consumer loans		8		3
Commercial loans		525		459

	$	1,430	$	1,285

The table below presents gross loan balances at December 31, 2018 by loan classification allocated between past due, performing and non-accrual:


	Currently		30 – 89 Days		More than 90 days past Due and still		Non-accrual
	Performing		Past Due		Accruing		Loans		Total
One-to-four family mortgages	$	174,962		614		—		62	$	175,638
Home equity line of credit		32,525		158		—		98		32,781
Junior liens		1,033		—		—		4		1,037
Multi-family		26,067		—		—		—		26,067
Construction		38,548		—		—		152		38,700
Land		12,175		—		—		—		12,175
Non-residential real estate		241,809		—		—		581		242,390
Farmland		34,041		—		—		—		34,041
Consumer loans		8,408		26		—		8		8,442
Commercial loans		91,930		11		—		525		92,466

Total	$	661,498		809		—		1,430		663,737

The table below presents gross loan balances at December 31, 2017 by loan classification allocated between past due, performing and non-accrual:


	Currently		30 – 89 Days		More than 90 days past Due and still		Non-accrual
	Performing		Past Due		Accruing		Loans		Total
One-to-four family mortgages	$	163,030		181		88		266	$	163,565
Home equity line of credit		35,295		—		—		402		35,697
Junior liens		1,180		—		—		4		1,184
Multi-family		37,445		—		—		—		37,445
Construction		30,246		—		—		—		30,246
Land		14,833		—		—		40		14,873
Non-residential real estate		224,743		209		—		—		224,952
Farmland		36,740		—		—		111		36,851
Consumer loans		8,614		3		—		3		8,620
Commercial loans		88,479		—		—		459		88,938

Total	$	640,605		393		88		1,285		642,371

Troubled Debt Restructuring

On a periodic basis, the Company may modify the terms of certain loans. In evaluating whether a restructuring constitutes a TDR, ASC 310; A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring, is determinative. In evaluating whether a restructuring constitutes a TDR, the Company must separately conclude that both of the following exist:

a.) The restructuring constitutes a concession

b.) The debtor is experiencing financial difficulties

ASC 310 provides the following guidance for the Company’s evaluation of whether it has granted a concession.

If a debtor does not otherwise have access to funds at a market interest rate for debt with similar risk characteristics as the restructured debt, the restructured debt would be considered a below market rate, which may indicate that the Company may have granted a concession. In that circumstance, the Company should consider all aspects of the restructuring in determining whether it has granted a concession, the creditor must make a separate assessment about whether the debtor is experiencing financial difficulties to determine whether the restructuring constitutes a TDR.

A temporary or permanent increase in the interest rate on a loan as a result of a restructuring does not eliminate the possibility of the restructuring from being considered a concession if the new interest rate on the loan is below the market interest rate for loans of similar risk characteristics.

A restructuring that results in a delay in payment that is insignificant is not a concession. However, the Company must consider a variety of factors in assessing whether a restructuring resulting in a delay in payment is insignificant.

There were no loans as of December 31, 2018, December 31, 2017 and December 31, 2016 that were been modified as TDRs and within twelve months of the modification subsequently defaulted on their modified terms. At December 31, 2018 and December 31, 2017, there were no commitments to lend additional funds to any borrower whose loan terms have been modified in a TDR. There was no allowance for loan loss allocated to loans classified as a TDR at December 31, 2018 and December 31, 2017.

A summary of the activity in loans classified as TDRs for the year ended December 31, 2018 is as follows:


	Balance at 12/31/17		New TDR		Loss on Foreclosure		Transferred to Non-accrual		Loan Amortization			Balance at 12/31/18
Non-residential real estate	$	3,163		322		—		—		(62	)	$	3,423
Commercial loans		—		109		—		—		(2	)		107

Total performing TDR	$	3,163		431		—		—		(64	)	$	3,530

During the year ended December 31, 2018, the Company made modifications to three loans which resulted in a TDR classification. The two new commercial loans classified as a TDR are secured by equipment and inventory. The TDR classification is the result of the borrower’s declining financial condition, prompting the Company to lengthen the amortization period of both loans. Each loans current amortization period is in excess of the Company’s lending policy. Both loans have a one year balloon and will be re-evaluated at that time. The new non-residential real estate loan classified as a TDR is an owner occupied property in which the cash flow generated by the business is declining. The owner is attempting to sell the business and building and the Bank has agreed to a six month interest only forbearance to provide the owner with some financial relieve while he attempts to liquidate the collateral. At December 31, 2018, the Company did not provide a specific reserve in its allowance for loan loss account for any loans classified as a TDR

A summary of the activity in loans classified as TDRs for the year ended December 31, 2017 is as follows:


	Balance at 12/31/16		New TDR		Loss on Foreclosure		Transferred to Non-accrual		Loan Amortization			Balance at 12/31/17
Multi-family real estate	$	815		—		—		—		(815	)		—
Non-residential real estate		5,646		—		—		—		(2,483	)		3,163

Total performing TDR	$	6,461		—		—		—		(3,298	)		3,163

During the year ended December 31, 2017, there were no loans newly classified as a TDR.

During the year ended December 31, 2016, the Company made financial concessions to one borrower having four loans totaling $1.0 million that resulted in in a TDR classification. The loans were secured by three multi-family real estate properties and one parcel of non-residential real estate. The borrower had financial problems and made a request of the Bank to make interest only payments for a period not to exceed one year while the borrower attempted to sell the collateral. The borrower successfully sold the collateral and the Company received all funds due.

The Company originates loans to officers and directors and their affiliates at terms substantially equivalent to those available to other borrowers. Loans to officers and directors at December 31, 2018 and December 31, 2017, were approximately $5.2 million and $5.9 million, respectively. At December 31, 2018 and December 31, 2017, there were no loans to officers and directors that were past due, classified as a TDR, impaired or placed into non-accrual status. At December 31, 2018 and December 31, 2017, funds committed that were undisbursed to officers and directors approximately $300,000 and $1.5 million, respectively.

The following summarizes activity of loans to officers and directors and their affiliates for the years ended December 31, 2018 and December 31, 2017:


	2018			2017
Balance at beginning of period	$	5,933			4,894
New loans		931			3,043
Principal repayments		(1,660	)		(2,004	)

Balance at end of period	$	5,204			5,933