Loans

6 Months Ended

Jun. 30, 2012

Loans [Abstract]

Loans

4. Loans

During the second quarter 2012, through the Bank’s normal problem loan resolution efforts and through a bulk loan sale, the Bank entered into contracts to sell selected classified loans with carrying values at March 31, 2012, before any allowance for loan losses, of $33.4 million, $21.7 million of which were included in gross loans at March 31, 2012 and closed during the second quarter 2012. In the aggregate, contracts to sell selected classified loans included in gross loans at March 31, 2012 resulted in charge-offs of $11.7 million. For disclosure related to the sale of other loans held for sale, see Note 5, Other Loans Held for Sale and Valuation Allowance.

In addition to the loan sales noted above, during the second quarter 2012 the Company transferred $7.5 million of gross loans to other loans held for sale in connection with the sale of its Rock Hill and Blacksburg branches, which closed on July 1, 2012. For disclosure related to the sale of these two branches see Note 21, Subsequent Event.

In the tables below, loan classes are based on Federal Deposit Insurance Corporation (“FDIC”) code and portfolio segments are an aggregation of those classes based on the methodology used by the Company to develop and document its allowance for loan losses. FDIC classification codes are based on the underlying loan collateral.

The tabular disclosures in this Note include amounts related to other loans held for sale, which are reported separately from the Company’s gross loan portfolio on the Consolidated Balance Sheets and are subject to different accounting and reporting requirements. Inclusion of other loans held for sale with the related disclosures for loans held for investment provides a more accurate and relevant picture of the Company’s loan exposures based on the characteristics of other loans held for sale.

Composition

The following table summarizes gross loans and other loans held for sale, categorized by portfolio segment, at the dates indicated (dollars in thousands).

	June 30, 2012						December 31, 2011
	Total			% of total			Total			% of total
Commercial real estate	$	451,764			61.2	%	$	492,754			62.6	%
Single-family residential		175,335			23.7			185,504			23.5
Commercial and industrial		49,763			6.7			49,381			6.3
Consumer		52,044			7.1			52,771			6.7
Other		9,526			1.3			7,326			0.9
Total loans	$	738,432			100.0	%	$	787,736			100.0	%
Less: other loans held for sale		(14,446	)					(14,178	)
Loans, gross	$	723,986					$	773,558

Loans included in the preceding table are net of unearned income, charge-offs, and unamortized deferred fees and costs on originated loans. Net unearned income, net deferred fees and costs, and discounts and premiums totaled $226 thousand at June 30, 2012 compared to $21 thousand at December 31, 2011.

The following table summarizes other loans held for sale, categorized by portfolio segment, at the dates indicated (dollars in thousands).

	June 30, 2012					December 31, 2011
	Total		% of total			Total		% of total
Commercial real estate	$	10,176		70.4	%	$	14,178		100.0	%
Single-family residential		2,298		15.9			—		—
Commercial and industrial		910		6.3			—		—
Consumer		228		1.6			—		—
Other		834		5.8			—		—
Total loans	$	14,446		100.0	%	$	14,178		100.0	%

Pledged

To borrow from the FHLB, members must pledge collateral. Acceptable collateral includes, among other types of collateral, a variety of residential, multifamily, home equity lines and second mortgages, and qualifying commercial loans. At June 30, 2012 and December 31, 2011, $198.2 million and $251.4 million of gross loans, respectively, were pledged to collateralize FHLB advances of which $75.5 million and $66.7 million, respectively, were available as lendable collateral. The Company may borrow from the FHLB for terms up to three years at amounts of up to 15% of the Company’s total assets, subject to availability of collateral.

At June 30, 2012 and December 31, 2011, $3.6 million and $5.4 million, respectively, of loans were pledged as collateral to cover the various Federal Reserve System services that are available for use by the Company.

Concentrations

The following table summarizes loans secured by commercial real estate, categorized by FDIC code, at June 30, 2012 (dollars in thousands).

	Commercial real estate included in gross loans		Commercial real estate  included in other loans held for sale		Total commercial real estate loans		% of gross loans and other loans held for sale			% of Bank’s total regulatory capital
Secured by commercial real estate
Construction, land development, and other land loans	$	66,998	$	2,691	$	69,689		9.5	%		64.1	%
Multifamily residential		12,694		—		12,694		1.7			11.7
Nonfarm nonresidential		361,896		7,485		369,381		50.0			339.7
Total loans secured by commercial real estate	$	441,588	$	10,176	$	451,764		61.2	%		415.5	%

The following table further categorizes loans secured by commercial real estate at June 30, 2012 (dollars in thousands).

	Commercial real estate included in gross loans		Commercial real estate included in other loans held for sale		Total commercial real estate loans		% of gross loans and other loans held for sale			% of Bank’s total regulatory capital
Development commercial real estate loans Secured by:
Land - unimproved (commercial or residential)	$	22,377	$	2,691	$	25,068		3.4	%		23.0	%
Land development - commercial		10,734		—		10,734		1.5			9.9
Land development - residential		14,851		—		14,851		2.0			13.7
Commercial construction:
Retail		3,972		—		3,972		0.5			3.6
Office		230		—		230		—			0.2
Industrial and warehouse		842		—		842		0.1			0.8
Miscellaneous commercial		1,934		—		1,934		0.3			1.8
Total development commercial real estate loans		54,940		2,691		57,631		7.8			53.0
Existing and other commercial real estate loans Secured by:
Hotel / motel		67,116		4,825		71,941		9.7			66.2
Retail		20,202		127		20,329		2.8			18.7
Office		20,128		197		20,325		2.8			18.7
Multifamily		12,694		—		12,694		1.7			11.7
Industrial and warehouse		9,111		560		9,671		1.3			8.9
Healthcare		16,124		—		16,124		2.2			14.8
Miscellaneous commercial		102,966		1,576		104,542		14.2			96.1
Residential construction - speculative		299		—		299		—			0.3
Total existing and other commercial real estate loans		248,640		7,285		255,925		34.7			235.4
Commercial real estate owner occupied and residential loans
Secured by:
Commercial - owner occupied		126,248		200		126,448		17.1			116.3
Commercial construction - owner occupied		6,468		—		6,468		0.9			5.9
Residential construction - contract		5,292		—		5,292		0.7			4.9
Total commercial real estate owner occupied and residential loans		138,008		200		138,208		18.7			127.1
Total loans secured by commercial real estate	$	441,588	$	10,176	$	451,764		61.2	%		415.5	%

Asset Quality

Credit Quality Indicators. The Company regularly monitors the credit quality of its loan portfolio. Credit quality refers to the current and expected ability of borrowers to repay their obligations according to the contractual terms of their loans. Credit quality is evaluated through assignment of individual loan grades as well as past due and performing status analysis. Credit quality indicators allow the Company to assess the inherent loss on certain individual loans and pools of loans.

The following table summarizes the Company’s internal credit quality indicators on gross loans and other loans held for sale, by class, at June 30, 2012 (in thousands).

	Construction, land development and other land loans		Multifamily residential		Nonfarm nonresidential		Commercial real estate in other loans held for sale		Total commercial real estate
Grade 1	$	—	$	—	$	—	$	—	$	—
Grade 2		—		—		427		—		427
Grade 3		10,357		2,868		83,081		915		97,221
Grade 4		15,294		1,229		132,331		2,286		151,140
Grade W		6,810		989		66,026		—		73,825
Grade 5		3,755		7,363		27,830		—		38,948
Grade 6		10,095		245		47,116		4,825		62,281
Grade 7		3,766		—		5,085		2,113		10,964
Not risk rated*		16,921		—		—		37		16,958
	$	66,998	$	12,694	$	361,896	$	10,176	$	451,764
Less: Commercial real estate included in other loans held for sale										(10,176	)
Total									$	441,588

* Consumer real estate loans of $16.9 million, included within construction, land development, and other land loans, are not risk rated, in accordance with our policy.

	Commercial and industrial		Commercial and industrial in other loans held for sale		Total commercial and industrial
Grade 1	$	2,782	$	25	$	2,807
Grade 2		214		—		214
Grade 3		10,522		566		11,088
Grade 4		21,213		319		21,532
Grade W		8,513		—		8,513
Grade 5		699		—		699
Grade 6		4,249		—		4,249
Grade 7		568		—		568
Not graded		93		—		93
Total	$	48,853	$	910	$	49,763

	Single-family residential revolving, open end loans		Single-family residential closed end, first lien		Single-family residential closed end, junior lien		Total single-family residential loans		Single-family residential loans in other loans held for  sale		Total single-family residential loans
Performing	$	58,083	$	103,401	$	5,559	$	167,043	$	2,298	$	169,341
Nonperforming		891		4,786		317		5,994		—		5,994
Total	$	58,974	$	108,187	$	5,876	$	173,037	$	2,298	$	175,335

	Credit cards		Consumer-other		Total consumer		Consumer loans in other loans held for sale		Total consumer
Performing	$	20	$	51,424	$	51,444	$	228	$	51,672
Nonperforming		32		340		372		—		372
Total	$	52	$	51,764	$	51,816	$	228	$	52,044

	Other		Other loans in other loans held for sale		Total other
Performing	$	8,682	$	834	$	9,516
Nonperforming		10		—		10
Total	$	8,692	$	834	$	9,526

The following table summarizes the Company’s internal credit quality indicators on gross loans and other loans held for sale, by class, at December 31, 2011 (in thousands).

	Construction, land development and other land loans		Multifamily residential		Nonfarm nonresidential		Commercial real estate in other loans held for sale		Total commercial real estate
Grade 1	$	—	$	—	$	—	$	—	$	—
Grade 2		—		—		457		—		457
Grade 3		8,295		3,252		100,265		—		111,812
Grade 4		13,601		945		126,961		—		141,507
Grade W		9,075		4,233		51,889		—		65,197
Grade 5		3,671		7,550		27,235		—		38,456
Grade 6		21,511		1,956		61,907		8,800		94,174
Grade 7		10,624		—		3,991		5,378		19,993
Not risk rated*		20,836		9		313		—		21,158
	$	87,613	$	17,945	$	373,018	$	14,178	$	492,754
Less: Commercial real estate included in other loans held for sale										(14,178	)
Total									$	478,576

*-Consumer real estate loans of $20.8 million, included within construction, land development, and other land loans, are not risk rated, in accordance with our policy.

	Commercial and industrial
Grade 1	$	2,966
Grade 2		459
Grade 3		11,380
Grade 4		22,253
Grade W		5,292
Grade 5		1,489
Grade 6		4,929
Grade 7		596
Not graded		17
Total	$	49,381

	Single-family residential revolving, open end loans		Single-family residential closed end, first lien		Single-family residential closed end, junior lien		Total single-family residential loans
Performing	$	58,128	$	111,623	$	6,482	$	176,233
Nonperforming		843		7,957		471		9,271
Total	$	58,971	$	119,580	$	6,953	$	185,504

	Credit cards		Consumer-other		Total Consumer
Performing	$	179	$	52,103	$	52,282
Nonperforming		16		473		489
Total	$	195	$	52,576	$	52,771

	Other
Performing	$	7,326
Nonperforming		—
Total	$	7,326

The following table summarizes delinquencies, by class, at June 30, 2012 (in thousands).

	30-89 days past due			Greater than 90 days past due on nonaccrual			Total past due			Current			Total loans
Construction, land development and other land loans	$	424		$	12,645		$	13,069		$	56,621		$	69,690
Multifamily residential		—			—			—			12,694			12,694
Nonfarm nonresidential		1,082			4,070			5,152			364,228			369,380
Total commercial real estate		1,506			16,715			18,221			433,543			451,764
Single-family real estate, revolving, open end loans		734			891			1,625			58,352			59,977
Single-family real estate, closed end, first lien		1,048			4,786			5,834			103,637			109,471
Single-family real estate, closed end, junior lien		62			317			379			5,508			5,887
Total single-family residential		1,844			5,994			7,838			167,497			175,335
Commercial and industrial		288			1,085			1,373			48,390			49,763
Credit cards		—			32			32			20			52
All other consumer		560			340			900			51,092			51,992
Total consumer		560			372			932			51,112			52,044
Farmland		—			10			10			4,019			4,029
Obligations of states and political subdivisions of the U.S.		—			—			—			861			861
Other		—			—			—			4,636			4,636
Total		4,198			24,176			28,374			710,058			738,432
Less: other loans held for sale		(40	)		(2,113	)		(2,153	)		(12,293	)		(14,446	)
Total gross loans	$	4,158		$	22,063		$	26,221		$	697,765		$	723,986

Additional interest income of $437 thousand and $850 thousand would have been reported during the three and six months ended June 30, 2012, respectively, had loans classified as nonaccrual during the period performed in accordance with their current contractual terms. As a result, the Company’s earnings did not include this interest income.

The following table summarizes delinquencies, by class, at December 31, 2011 (in thousands).

	30-89 days past due		Greater than 90 days past due on nonaccrual			Total past due			Current			Total loans
Construction, land development and other land loans	$	94	$	27,085		$	27,179		$	64,975		$	92,154
Multifamily residential		—		—			—			17,945			17,945
Nonfarm nonresidential		574		14,870			15,444			367,211			382,655
Total commercial real estate		668		41,955			42,623			450,131			492,754
Single-family real estate, revolving, open end loans		379		843			1,222			57,749			58,971
Single-family real estate, closed end, first lien		2,633		7,957			10,590			108,990			119,580
Single-family real estate, closed end, junior lien		145		471			616			6,337			6,953
Total single-family residential		3,157		9,271			12,428			173,076			185,504
Commercial and industrial		314		1,313			1,627			47,754			49,381
Credit cards		—		16			16			179			195
All other consumer		760		473			1,233			51,343			52,576
Total consumer		760		489			1,249			51,522			52,771
Farmland		—		—			—			3,513			3,513
Obligations of states and political subdivisions of the U.S.		—		—			—			903			903
Other		2		—			2			2,908			2,910
Total		4,901		53,028			57,929			729,807			787,736
Less: other loans held for sale		—		(5,812	)		(5,812	)		(8,366	)		(14,178	)
Total gross loans	$	4,901	$	47,216		$	52,117		$	721,441		$	773,558

Troubled Debt Restructurings. The following table summarizes the carrying balance of troubled debt restructurings at the dates indicated (in thousands).

	June 30, 2012						December 31, 2011
	Performing		Nonperforming		Total		Performing		Nonperforming		Total
Other loans held for sale	$	4,825	$	—	$	4,825	$	8,366	$	—	$	8,366
Loans, gross		29,618		70		29,688		37,461		9,276		46,737
Total troubled debt restructurings	$	34,443	$	70	$	34,513	$	45,827	$	9,276	$	55,103

Loans classified as troubled debt restructurings may be removed from this status after a period of time if the restructured agreement specifies an interest rate equal to or greater than the rate that the borrower was willing to accept at the time of the restructuring for a new loan with comparable risk and the loan is not impaired based on the terms specified by the restructured agreement. The following table summarizes troubled debt restructurings removed from this classification during the periods indicated (dollars in thousands).

	For the three  months ended June 30,				For the six  months ended June 30,
	2012		2011		2012		2011
Carrying balance	$	3,665	$	—	$	5,887	$	876
Count		16		—		18		1

The following table summarizes, by class, loans that were modified resulting in troubled debt restructurings during the periods indicated (dollars in thousands).

	For the three months ended June 30, 2012						For the six months ended June 30, 2012
	Number of contracts		Pre- modification outstanding recorded investment		Post- modification outstanding recorded investment		Number of contracts		Pre- modification outstanding recorded investment		Post- modification outstanding recorded investment
Construction, land development and other land loans		—	$	—	$	—		1	$	4,089	$	4,089
Nonfarm nonresidential		1		243		243		6		1,811		1,811
Total commercial real estate		1		243		243		7		5,900		5,900
Single-family real estate, closed end, first lien		1		70		70		1		70		70
Commercial and industrial		1		206		206		2		421		416
Total loans		3	$	519	$	519		10	$	6,391	$	6,386
Less: other loans held for sale		—		—		—		—		—		—
Loans, gross		3	$	519	$	519		10	$	6,391	$	6,386

The following table summarizes, by type of concession, loans that were modified resulting in troubled debt restructurings during the periods indicated (dollars in thousands).

	For the three months ended June 30, 2012						For the six months ended June 30, 2012
	Number of contracts		Pre- modification outstanding recorded investment		Post- modification outstanding recorded investment		Number of contracts		Pre- modification outstanding recorded investment		Post- modification outstanding recorded investment
Term concession		3	$	519	$	519		4	$	4,608	$	4,608
Rate and term concessions		—		—		—		6		1,783		1,778
Total loans		3	$	519	$	519		10	$	6,391	$	6,386
Less: other loans held for sale		—		—		—		—		—		—
Loans, gross		3	$	519	$	519		10	$	6,391	$	6,386

The following table summarizes, by class, loans modified resulting in troubled debt restructurings within the previous 12-month period for which there was a payment default during the periods indicated (dollars in thousands).

	For the three months ended June 30, 2012				For the six months  ended June 30, 2012
	Number of contracts		Recorded investment		Number of contracts		Recorded investment
Construction, land development and other land loans		1	$	488		1	$	488
Nonfarm nonresidential		2		406		5		1,545
Total commercial real estate		3		894		6		2,033
Single-family real estate, closed end, first lien		—		—		1		46
Total loans		3	$	894		7	$	2,079
Less: other loans held for sale		—		—		—		—
Loans, gross		3	$	894		7	$	2,079

Impaired Loans. The following table summarizes the composition of impaired loans, including other loans held for sale, at the dates indicated (in thousands). All loans that have been modified resulting in troubled debt restructurings are impaired loans.

	June 30, 2012
	Performing troubled debt restructured loans		Nonperforming troubled debt restructured loans		Nonperforming other loans		Performing other loans		Total
Other loans held for sale	$	4,825	$	—	$	2,113	$	—	$	6,938
Loans, gross		29,618		70		9,529		5,817		45,034
Total impaired loans	$	34,443	$	70	$	11,642	$	5,817	$	51,972

	December 31, 2011
	Performing troubled debt restructured loans		Nonperforming troubled debt restructured loans		Nonperforming other loans		Total
Other loans held for sale	$	8,366	$	—	$	5,812	$	14,178
Loans, gross		37,461		9,276		23,054		69,791
Total impaired loans	$	45,827	$	9,276	$	28,866	$	83,969

The following table summarizes the composition of and information relative to impaired loans, by class, at June 30, 2012 (in thousands).

	Gross loans						Other loans held for sale				Total loans
	Recorded investment		Unpaid principal balance		Related allowance		Recorded investment		Unpaid principal balance		Recorded investment		Unpaid principal balance		Related allowance
With no related allowance recorded:
Construction, land development and other land loans	$	9,753	$	26,701			$	2,113	$	9,072	$	11,866	$	35,773
Multifamily residential		—		—				—		—		—		—
Nonfarm nonresidential		8,263		12,691				4,825		6,603		13,088		19,294
Total commercial real estate		18,016		39,392				6,938		15,675		24,954		55,067
Single-family real estate, revolving, open end loans		—		—				—		—		—		—
Single-family real estate, closed end, first lien		982		3,407				—		—		982		3,407
Single-family real estate, closed end, junior lien		10		27				—		—		10		27
Total single-family residential		992		3,434				—		—		992		3,434
Commercial and industrial		753		1,179				—		—		753		1,179
Total impaired loans with no related allowance recorded	$	19,761	$	44,005			$	6,938	$	15,675	$	26,699	$	59,680
With an allowance recorded:
Construction, land development and other land loans	$	5,835	$	5,835	$	321					$	5,835	$	5,835	$	321
Multifamily residential		245		245		7						245		245		7
Nonfarm nonresidential		16,203		16,583		2,759						16,203		16,583		2,759
Total commercial real estate		22,283		22,663		3,087						22,283		22,663		3,087
Single-family real estate, revolving, open end loans		—		—		—						—		—		—
Single-family real estate, closed end, first lien		2,033		4,340		108						2,033		4,340		108
Single-family real estate, closed end, junior lien		151		151		50						151		151		50
Total single-family residential		2,184		4,491		158						2,184		4,491		158
Commercial and industrial		765		765		45						765		765		45
All other consumer		41		41		5						41		41		5
Total impaired loans with an allowance recorded	$	25,273	$	27,960	$	3,295					$	25,273	$	27,960	$	3,295
Total:
Construction, land development and other land loans	$	15,588	$	32,536	$	321	$	2,113	$	9,072	$	17,701	$	41,608	$	321
Multifamily residential		245		245		7		—		—		245		245		7
Nonfarm nonresidential		24,466		29,274		2,759		4,825		6,603		29,291		35,877		2,759
Total commercial real estate		40,299		62,055		3,087		6,938		15,675		47,237		77,730		3,087
Single-family real estate, revolving, open end loans		—		—		—		—		—		—		—		—
Single-family real estate, closed end, first lien		3,015		7,747		108		—		—		3,015		7,747		108
Single-family real estate, closed end, junior lien		161		178		50		—		—		161		178		50
Total single-family residential		3,176		7,925		158		—		—		3,176		7,925		158
Commercial and industrial		1,518		1,944		45		—		—		1,518		1,944		45
All other consumer		41		41		5		—		—		41		41		5
Total impaired loans	$	45,034	$	71,965	$	3,295	$	6,938	$	15,675	$	51,972	$	87,640	$	3,295

Interest income recognized on impaired loans during the three and six months ended June 30, 2012 was $464 thousand and $921 thousand, respectively. The average balance of total impaired loans was $69.1 million and $74.5 million for the same periods.

The following table summarizes the composition of and information relative to impaired loans, by class, at December 31, 2011 (in thousands).

	Gross loans						Other loans held for sale				Total loans
	Recorded investment		Unpaid principal balance		Related allowance		Recorded investment		Unpaid principal balance		Recorded investment		Unpaid principal balance		Related allowance
With no related allowance recorded:
Construction, land development and other land loans	$	16,845	$	36,735			$	4,541	$	16,799	$	21,386	$	53,534
Multifamily residential		—		—				—		—		—		—
Nonfarm nonresidential		16,047		22,188				9,637		13,831		25,684		36,019
Total commercial real estate		32,892		58,923				14,178		30,630		47,070		89,553
Single-family real estate, revolving, open end loans		—		—				—		—		—		—
Single-family real estate, closed end, first lien		2,742		6,928				—		—		2,742		6,928
Single-family real estate, closed end, junior lien		—		—				—		—		—		—
Total single-family residential		2,742		6,928				—		—		2,742		6,928
Commercial and industrial		886		1,312				—		—		886		1,312
Total impaired loans with no related allowance recorded	$	36,520	$	67,163			$	14,178	$	30,630	$	50,698	$	97,793
With an allowance recorded:
Construction, land development and other land loans	$	9,702	$	11,624	$	3,301					$	9,702	$	11,624	$	3,301
Multifamily residential		247		247		9						247		247		9
Nonfarm nonresidential		20,784		20,784		2,886						20,784		20,784		2,886
Total commercial real estate		30,733		32,655		6,196						30,733		32,655		6,196
Single-family real estate, revolving, open end loans		—		—		—						—		—		—
Single-family real estate, closed end, first lien		1,689		1,689		161						1,689		1,689		161
Single-family real estate, closed end, junior lien		183		183		54						183		183		54
Total single-family residential		1,872		1,872		215						1,872		1,872		215
Commercial and industrial		622		691		88						622		691		88
All other consumer		44		44		6						44		44		6
Total impaired loans with an allowance recorded	$	33,271	$	35,262	$	6,505					$	33,271	$	35,262	$	6,505
Total:
Construction, land development and other land loans	$	26,547	$	48,359	$	3,301	$	4,541	$	16,799	$	31,088	$	65,158	$	3,301
Multifamily residential		247		247		9		—		—		247		247		9
Nonfarm nonresidential		36,831		42,972		2,886		9,637		13,831		46,468		56,803		2,886
Total commercial real estate		63,625		91,578		6,196		14,178		30,630		77,803		122,208		6,196
Single-family real estate, revolving, open end loans		—		—		—		—		—		—		—		—
Single-family real estate, closed end, first lien		4,431		8,617		161		—		—		4,431		8,617		161
Single-family real estate, closed end, junior lien		183		183		54		—		—		183		183		54
Total single-family residential		4,614		8,800		215		—		—		4,614		8,800		215
Commercial and industrial		1,508		2,003		88		—		—		1,508		2,003		88
All other consumer		44		44		6		—		—		44		44		6
Total impaired loans	$	69,791	$	102,425	$	6,505	$	14,178	$	30,630	$	83,969	$	133,055	$	6,505

Allowance for Loan Losses

The following table summarizes the allowance for loan losses and recorded investment in gross loans, by portfolio segment, at and for the periods indicated (in thousands).

	At and for the six months ended June 30, 2012													At and for  the year ended December 31, 2011
	Commercial		Single-family		Commercial and
	real estate		residential		industrial			Consumer		Other		Total		Total
Allowance for loan losses:
Allowance for loan losses, beginning of period	$	18,026	$	4,488	$	1,862		$	1,209	$	11	$	25,596	$	26,934
Provision for loan losses		9,643		1,649		(334	)		114		78		11,150		20,500
Loan charge-offs		15,221		2,903		302			359		319		19,104		22,832
Loan recoveries		104		74		108			106		244		636		994
Net loans charged-off		15,117		2,829		194			253		75		18,468		21,838
Allowance for loan losses, end of period	$	12,552	$	3,308	$	1,334		$	1,070	$	14	$	18,278	$	25,596
Individually evaluated for impairment	$	3,087	$	158	$	45		$	5	$	—	$	3,295	$	6,505
Collectively evaluated for impairment		9,465		3,150		1,289			1,065		14		14,983		19,091
Allowance for loan losses, end of period	$	12,552	$	3,308	$	1,334		$	1,070	$	14	$	18,278	$	25,596
Gross loans, end of period:
Individually evaluated for impairment	$	40,299	$	3,176	$	1,518		$	41	$	—	$	45,034	$	69,791
Collectively evaluated for impairment		401,289		169,861		47,335			51,775		8,692		678,952		703,767
Total gross loans	$	441,588	$	173,037	$	48,853		$	51,816	$	8,692	$	723,986	$	773,558