Allowance for Loan Losses

6 Months Ended

Jun. 30, 2021

Allowance for Loan LossesThe following tables detail activity in the allowance for loan losses, segregated by class of loan, for the six month periods ended June 30, 2021 and June 30, 2020. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other loan categories and periodically may result in reallocation within the provision categories.


(dollars in thousands)	Construction, land and land development		Other commercial real estate		Residential real estate		Commercial, financial & agricultural		Consumer and other		Total
Three Months Ended June 30, 2021
Beginning Balance	$	1,053	$	7,128	$	2,411	$	1,666	$	435	$	12,693
Charge-offs	—		(36)		—		—		(32)		(68)
Recoveries	70		95		44		15		22		246
Provision	2		90		(182)		92		(2)		—
Ending balance	1,125		7,277		2,273		1,773		423		12,871

Six Months Ended June 30, 2021
Beginning Balance	$	1,013	$	6,880	$	2,278	$	1,713	$	243	$	12,127
Charge-offs	—		(36)		—		(15)		(43)		(94)
Recoveries	85		95		110		18		30		338
Provision	27		338		(115)		57		193		500
Ending balance	1,125		7,277		2,273		1,773		423		12,871


Period end amount allocated to
Individually evaluated for impairment	—		1,350		224		—		—		1,574
Collectively evaluated for impairment	1,125		5,889		2,040		1,769		327		11,150
Purchase credit impaired	—		38		9		4		96		147
Ending Balance	1,125		7,277		2,273		1,773		423		12,871

Loans
Individually evaluated for impairment	6,968		11,793		2,166		85		—		21,012
Collectively evaluated for impairment	111,881		533,228		167,995		167,585		19,809		1,000,498
Purchase credit impaired	91		862		12		47		96		1,108
Ending balance	$	118,940	$	545,883	$	170,173	$	167,717	$	19,905	$	1,022,618


(dollars in thousands)	Construction, land and land development		Other commercial real estate		Residential real estate		Commercial, financial & agricultural		Consumer and other		Total
Three Months Ended June 30, 2020
Beginning Balance	$	354	$	4,821	$	1,203	$	1,780	$	226	$	8,384
Charge-offs	(4)		—		(16)		—		(364)		(384)
Recoveries	12		21		6		19		31		89
Provision	397		869		438		114		382		2,200
Ending balance	759		5,711		1,631		1,913		275		10,289
Six Months Ended June 30, 2020
Beginning Balance	$	215	$	3,908	$	980	$	1,657	$	103	$	6,863
Charge-offs	(4)		(30)		(80)		(68)		(715)		(897)
Recoveries	25		26		10		20		86		167
Provision	523		1,807		721		304		801		4,156
Ending balance	759		5,711		1,631		1,913		275		10,289

December 31, 2020
Period end amount allocated to
Individually evaluated for impairment	—		1,436		226		263		—		1,925
Collectively evaluated for impairment	1,013		5,444		2,048		1,450		162		10,117
Purchase credit impaired	—		—		4		—		81		85
Ending Balance	1,013		6,880		2,278		1,713		243		12,127

Loans
Individually evaluated for impairment	6,982		17,430		2,352		350		—		27,114
Collectively evaluated for impairment	114,017		502,961		180,658		212,984		21,522		1,032,142
Purchase credit impaired	94		—		11		46		96		247
Ending Balance	$	121,093	$	520,391	$	183,021	$	213,380	$	21,618	$	1,059,503

Management continually evaluates the allowance for loan losses methodology seeking to refine and enhance this process as appropriate, and it is likely that the methodology will continue to evolve over time.

The Company determines its individual reserves during its quarterly review of substandard loans. This process involves reviewing all loans with a risk grade of 6 or greater and an outstanding balance of $250,000 or more, regardless of the loans impairment classification.