Allowance for Loan Losses

The following tables present, as of March 31, 2018, December 31, 2017 and March 31, 2017, the total allowance for loan losses, the allowance by impairment methodology, and loans by impairment methodology (in thousands):



	March 31, 2018
	Construction and Land Development			Secured by 1-4 Family Residential			Other Real Estate		Commercial and Industrial			Consumer and Other Loans			Total
Allowance for loan losses:
Beginning Balance, December 31, 2017	$	414		$	775		$	2,948	$	418		$	771		$	5,326
Charge-offs	—			(2		)	—		(8		)	(196		)	(206		)
Recoveries	—			3			1		1			47			52
Provision for (recovery of) loan losses	(18		)	2			18		40			58			100
Ending Balance, March 31, 2018	$	396		$	778		$	2,967	$	451		$	680		$	5,272
Ending Balance:
Individually evaluated for impairment	—			—			—		—			—			—
Collectively evaluated for impairment	396			778			2,967		451			680			5,272
Loans:
Ending Balance	$	33,941		$	208,338		$	222,352	$	39,253		$	17,052		$	520,936
Individually evaluated for impairment	874			1,332			1,263		61			—			3,530
Collectively evaluated for impairment	33,067			207,006			221,089		39,192			17,052			517,406



	December 31, 2017
	Construction and Land Development			Secured by 1-4 Family Residential			Other Real Estate			Commercial and Industrial		Consumer and Other Loans			Total
Allowance for loan losses:
Beginning Balance, December 31, 2016	$	441		$	1,019		$	3,142		$	380	$	339		$	5,321
Charge-offs	—			(126		)	—			—		(607		)	(733		)
Recoveries	11			302			50			10		265			638
Provision for (recovery of) loan losses	(38		)	(420		)	(244		)	28		774			100
Ending Balance, December 31, 2017	$	414		$	775		$	2,948		$	418	$	771		$	5,326
Ending Balance:
Individually evaluated for impairment	—			—			—			—		—			—
Collectively evaluated for impairment	414			775			2,948			418		771			5,326
Loans:
Ending Balance	$	35,927		$	208,177		$	222,256		$	38,763	$	17,078		$	522,201
Individually evaluated for impairment	1,150			1,307			1,289			65		—			3,811
Collectively evaluated for impairment	34,777			206,870			220,967			38,698		17,078			518,390



	March 31, 2017
	Construction and Land Development		Secured by 1-4 Family Residential			Other Real Estate		Commercial and Industrial			Consumer and Other Loans			Total
Allowance for loan losses:
Beginning Balance, December 31, 2016	$	441	$	1,019		$	3,142	$	380		$	339		$	5,321
Charge-offs	—		—			—		—			(106		)	(106		)
Recoveries	1		128			47		5			55			236
Provision for (recovery of) loan losses	39		(187		)	78		(10		)	80			—
Ending Balance, March 31, 2017	$	481	$	960		$	3,267	$	375		$	368		$	5,451
Ending Balance:
Individually evaluated for impairment	—		31			—		—			—			31
Collectively evaluated for impairment	481		929			3,267		375			368			5,420
Loans:
Ending Balance	$	36,024	$	205,623		$	216,591	$	29,192		$	10,340		$	497,770
Individually evaluated for impairment	2,022		1,443			977		71			—			4,513
Collectively evaluated for impairment	34,002		204,180			215,614		29,121			10,340			493,257

Impaired loans and the related allowance at March 31, 2018, December 31, 2017 and March 31, 2017, were as follows (in thousands):



	March 31, 2018
	Unpaid Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized
Real estate loans:
Construction and land development	$	992	$	874	$	—	$	874	$	—	$	1,257	$	13
Secured by 1-4 family	1,417		1,332		—		1,332		—		1,299		15
Other real estate loans	1,464		1,263		—		1,263		—		1,274		19
Commercial and industrial	74		61		—		61		—		64		1
Total	$	3,947	$	3,530	$	—	$	3,530	$	—	$	3,894	$	48

	December 31, 2017
	Unpaid Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized
Real estate loans:
Construction and land development	$	1,627	$	1,150	$	—	$	1,150	$	—	$	1,814	$	63
Secured by 1-4 family	1,387		1,307		—		1,307		—		1,637		64
Other real estate loans	1,483		1,289		—		1,289		—		1,137		95
Commercial and industrial	78		65		—		65		—		68		10
Total	$	4,575	$	3,811	$	—	$	3,811	$	—	$	4,656	$	232

	March 31, 2017
	Unpaid Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized
Real estate loans:
Construction and land development	$	2,455	$	2,022	$	—	$	2,022	$	—	$	1,922	$	13
Secured by 1-4 family	1,469		1,358		85		1,443		31		1,781		16
Other real estate loans	1,206		977		—		977		—		980		19
Commercial and industrial	89		71		—		71		—		73		1
Total	$	5,219	$	4,428	$	85	$	4,513	$	31	$	4,756	$	49

The “Recorded Investment” amounts in the table above represent the outstanding principal balance on each loan represented in the table. The “Unpaid Principal Balance” represents the outstanding principal balance on each loan represented in the table plus any amounts that have been charged off on each loan and/or payments that have been applied towards principal on non-accrual loans. Only loan classes with balances are included in the tables above.

As of March 31, 2018, loans classified as troubled debt restructurings (TDRs) and included in impaired loans in the disclosure above totaled $327 thousand. At March 31, 2018, $278 thousand of the loans classified as TDRs were performing under the restructured terms and were not considered non-performing assets. There were $333 thousand in TDRs at December 31, 2017, $282 thousand of which were performing under the restructured terms. Modified terms under TDRs may include rate reductions, extension of terms that are considered to be below market, conversion to interest only, and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. There were no loans modified under TDRs during the three month periods ended March 31, 2018 and 2017.

For the three months ended March 31, 2018 and 2017, there were no troubled debt restructurings that subsequently defaulted within twelve months of the loan modification. Management defines default as over ninety days past due or the foreclosure and repossession of the collateral or charge-off of the loan during the twelve month period subsequent to the modification.