3. Loans Held for Investment

9 Months Ended

Sep. 30, 2016

Loans Held For Investment

3. Loans Held for Investment

 Loans outstanding at September 30, 2016 and December 31, 2015 are summarized as follows (in thousands):

	2016		2015
Construction/Land Development	$	77,478	$	69,759
Farmland		12,697		13,378
Real Estate		168,911		166,587
Multi-Family		6,929		7,559
Commercial Real Estate		143,376		128,032
Home Equity – closed end		10,775		9,135
Home Equity – open end		55,852		56,599
Commercial & Industrial – Non-Real Estate		28,760		27,954
Consumer		7,218		8,219
Dealer Finance		63,406		54,086
Credit Cards		2,687		2,745
Total	$	578,089	$	544,053

The following is a summary of information pertaining to impaired loans (in thousands):

	September 30, 2016						December 31, 2015
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
Impaired loans without a valuation allowance:
Construction/Land Development	$	3,913	$	4,207	$	-	$	1,361	$	1,499	$	-
Farmland		-		-		-		-		-		-
Real Estate		774		774		-		1,097		1,097		-
Multi-Family		-		-		-		-		-		-
Commercial Real Estate		1,985		1,985		-		307		307		-
Home Equity – closed end		-		-		-		-		-		-
Home Equity – open end		-		347		-		1,159		1,159		-
Commercial & Industrial – Non-Real Estate		173		173		-		181		181		-
Consumer		15		15		-		18		18		-
Credit cards		-		-		-		-		-		-
Dealer Finance		24		24		-		4		4		-
		6,884		7,525				4,127		4,265
Impaired loans with a valuation allowance
Construction/Land Development		6,836		6,836		1,601		11,534		11,534		2,373
Farmland		-		-		-		-		-		-
Real Estate		1,210		1,210		219		324		324		238
Multi-Family		-		-		-		-		-		-
Commercial Real Estate		955		955		53		890		890		18
Home Equity – closed end		-		-		-		-		-		-
Home Equity – open end		1,061		1,061		241		1,414		1,414		269
Commercial & Industrial – Non-Real Estate		-		-		-		-		-		-
Consumer		-		-		-		-		-		-
Credit cards		-		-		-		-		-		-
Dealer Finance		57		57		18		68		68		17
		10,119		10,119		2,132		14,230		14,230		2,915
Total impaired loans	$	17,003	$	17,644	$	2,132	$	18,357	$	18,495	$	2,915

The Recorded Investment is defined as the principal balance less principal payments and charge-offs.

The following is a summary of the average investment and interest income recognized for impaired loans (in thousands):

	Three Months Ended September 30,										Nine Months Ended September 30,
	2016					2015					2016				2015
	Average Recorded		Interest Income			Average Recorded		Interest Income			Average Recorded		Interest Income		Average Recorded		Interest Income
	Investment		Recognized			Investment		Recognized			Investment		Recognized		Investment		Recognized
Impaired loans without a valuation allowance:
Construction/Land Development	$	2,649	$	15		$	3,423	$	18		$	2,009	$	32	$	4,153	$	110
Farmland		-		-			-		-			-		-		-		-
Real Estate		778		8			1,146		7			860		28		643		43
Multi-Family		-		-			-		-			-		-		-		-
Commercial Real Estate		993		77			728		(17	)		674		79		1,016		13
Home Equity – closed end		-		-			-		-			-		-		-		-
Home Equity – open end		964		(35	)		1,553		10			1,167		8		1,601		82
Commercial & Industrial – Non-Real Estate		174		2			185		3			177		2		187		9
Consumer and credit cards		7		2			10		-			12		-		5		-
Dealer Finance		24		(1	)		-		2			15		1		-		2
		5,589		68			7,045		23			4,914		150		7,605		259
Impaired loans with a valuation allowance:
Construction/Land Development		8,429		112			12,590		29		$	9,761	$	212		13,222	$	220
Farmland		-		-			-		-			-		-		-		-
Real Estate		1,214		14			663		25			994		40		793		43
Multi-Family		-		-			-		-			-		-		-		-
Commercial Real Estate		958		14			887		1			944		42		902		3
Home Equity – closed end		-		-			-		-			-		-		-		-
Home Equity – open end		1,234		(5	)		824		58			1,322		14		412		58
Commercial & Industrial – Non-Real Estate		14		(1	)		-		-			14		0		-		-
Consumer and credit card		-		-			-		-			-		-		-		-
Dealer Finance		72		-			51		-			72		3		41		3
		11,921		134			15,015		113			13,107		311		15,370		327
Total Impaired Loans	$	17,510	$	202		$	22,060	$	136		$	18,021	$	461	$	22,975	$	586