Note 4.Allowance for Loan and Lease Losses

The following tables present the detail of the allowance and the LHFI portfolio disaggregated by loan portfolio classification as of June 30, 2017, December 31, 2016 and June 30, 2016.

Allowance for Loan and Lease Losses

As of and for the three months ended June 30, 2017


			Construction
	Commercial		and land		Commercial		Multi-		Residential				Tax
(In thousands)	real estate		development		and industrial		family		real estate		Leases		certificates		Consumer		Unallocated		Total
Beginning balance	$	3,366	$	2,405	$	1,378	$	313	$	651	$	2,239	$	179	$	27	$	—	$	10,558
Charge-offs		(59)		—		—		—		(7)		(300)		—		—		—		(366)
Recoveries		—		—		—		—		7		6		—		—		—		13
Provision (credit)		(146)		(132)		(7)		31		(28)		347		(9)		1		—		57
Ending balance	$	3,161	$	2,273	$	1,371	$	344	$	623	$	2,292	$	170	$	28	$	—	$	10,262
Ending balance: related to loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	16	$	195	$	14	$	—	$	—	$	225
Ending balance: related to loans collectively evaluated for impairment	$	3,161	$	2,273	$	1,371	$	344	$	607	$	2,097	$	156	$	28	$	—	$	10,037

Allowance for Loan and Lease Losses

As of and for the six months ended June 30, 2017


			Construction
	Commercial		and land		Commercial		Multi-		Residential				Tax
(In thousands)	real estate		development		and industrial		family		real estate		Leases		certificates		Consumer		Unallocated		Total
Beginning balance	$	3,295	$	2,294	$	1,346	$	263	$	656	$	2,295	$	242	$	29	$	—	$	10,420
Charge-offs		(79)		—		—		—		(8)		(797)		(8)		—		—		(892)
Recoveries		—		351		—		—		15		14		—		—		—		380
(Credit) provision		(55)		(372)		25		81		(40)		780		(64)		(1)		—		354
Ending balance	$	3,161	$	2,273	$	1,371	$	344	$	623	$	2,292	$	170	$	28	$	—	$	10,262
Ending balance: related to loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	16	$	195	$	14	$	—	$	—	$	225
Ending balance: related to loans collectively evaluated for impairment	$	3,161	$	2,273	$	1,371	$	344	$	607	$	2,097	$	156	$	28	$	—	$	10,037

Loans Evaluated for Impairment

As of June 30, 2017


			Construction
	Commercial		and land		Commercial		Multi-		Residential				Tax
	real estate		development		and industrial		family		real estate		Leases		certificates		Consumer		Unallocated		Total
(In thousands)
Ending balance	$	258,662	$	84,910	$	116,200	$	29,030	$	56,363	$	56,258	$	1,378	$	2,892	$	—	$	605,693
Ending balance: individually evaluated for impairment	$	806	$	128	$	1,859	$	—	$	614	$	1,059	$	502	$	—	$	—	$	4,968
Ending balance: collectively evaluated for impairment	$	257,856	$	84,782	$	114,341	$	29,030	$	55,749	$	55,199	$	876	$	2,892	$	—	$	600,725

Allowance for Loan and Lease Losses and Loans Evaluated for Impairment

As of and for the year ended December 31, 2016


			Construction
	Commercial		and land		Commercial		Multi-		Residential				Tax
(In thousands)	real estate		development		and industrial		family		real estate		Leases		certificates		Consumer		Unallocated		Total
Beginning balance	$	3,622	$	1,674	$	1,513	$	171	$	586	$	1,749	$	347	$	27	$	—	$	9,689
Charge-offs		(84)		—		(107)		—		(40)		(930)		(139)		—		—		(1,300)
Recoveries		201		306		174		—		35		57		14		2		—		789
(Credit) provision		(444)		314		(234)		92		75		1,419		20		—		—		1,242
Ending balance	$	3,295	$	2,294	$	1,346	$	263	$	656	$	2,295	$	242	$	29	$	—	$	10,420
Ending balance: related to loans individually evaluated for impairment	$	3	$	—	$	—	$	—	$	17	$	340	$	8	$	—	$	—	$	368
Ending balance: related to loans collectively evaluated for impairment	$	3,292	$	2,294	$	1,346	$	263	$	639	$	1,955	$	234	$	29	$	—	$	10,052
Loan Balances
Ending balance	$	261,561	$	83,369	$	108,146	$	23,389	$	56,899	$	61,838	$	3,705	$	3,102	$	—	$	602,009
Ending balance: individually evaluated for impairment	$	904	$	144	$	2,105	$	—	$	653	$	1,242	$	1,907	$	—	$	—	$	6,955
Ending balance: collectively evaluated for impairment	$	260,657	$	83,225	$	106,041	$	23,389	$	56,246	$	60,596	$	1,798	$	3,102	$	—	$	595,054

Allowance for Loan and Lease Losses

As of and for the three months ended June 30, 2016


			Construction
	Commercial		and land		Commercial		Multi-		Residential				Tax
(In thousands)	real estate		development		and industrial		family		real estate		Leases		certificates		Consumer		Unallocated		Total
Beginning balance	$	3,570	$	1,920	$	1,419	$	174	$	586	$	1,993	$	252	$	27	$	—	$	9,941
Charge-offs		—		—		—		—		(40)		(164)		(25)		—		—		(229)
Recoveries		8		64		4		—		8		9		6		—		—		99
(Credit) provision		(236)		7		(58)		57		93		214		125		(5)		—		197
Ending balance	$	3,342	$	1,991	$	1,365	$	231	$	647	$	2,052	$	358	$	22	$	—	$	10,008
Ending balance: related to loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	18	$	204	$	115	$	—	$	—	$	337
Ending balance: related to loans collectively evaluated for impairment	$	3,342	$	1,991	$	1,365	$	231	$	629	$	1,848	$	243	$	22	$	—	$	9,671

Allowance for Loan and Lease Losses

As of and for the six months ended June 30, 2016


			Construction
	Commercial		and land		Commercial		Multi-		Residential				Tax
(In thousands)	real estate		development		and industrial		family		real estate		Leases		certificates		Consumer		Unallocated		Total
Beginning balance	$	3,622	$	1,674	$	1,513	$	171	$	586	$	1,749	$	347	$	27	$	—	$	9,689
Charge-offs		(77)		—		(108)		—		(40)		(447)		(31)		—		—		(703)
Recoveries		184		258		127		—		19		17		8		—		—		613
Provision (credit)		(387)		59		(167)		60		82		733		34		(5)		—		409
Ending balance	$	3,342	$	1,991	$	1,365	$	231	$	647	$	2,052	$	358	$	22	$	—	$	10,008
Ending balance: related to loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	18	$	204	$	115	$	—	$	—	$	337
Ending balance: related to loans collectively evaluated for impairment	$	3,342	$	1,991	$	1,365	$	231	$	629	$	1,848	$	243	$	22	$	—	$	9,671

Loans Evaluated for Impairment

As of June 30, 2016


			Construction
	Commercial		and land		Commercial		Multi-		Residential				Tax
	real estate		development		and industrial		family		real estate		Leases		certificates		Consumer		Unallocated		Total
(In thousands)
Ending balance	$	239,776	$	65,385	$	97,270	$	21,010	$	50,104	$	66,898	$	4,390	$	2,254	$	—	$	547,087
Ending balance: individually evaluated for impairment	$	879	$	145	$	2,306	$	—	$	677	$	1,088	$	1,110	$	—	$	—	$	6,205
Ending balance: collectively evaluated for impairment	$	238,897	$	65,240	$	94,964	$	21,010	$	49,427	$	65,810	$	3,280	$	2,254	$	—	$	540,882

The following tables detail the loans that were evaluated for impairment by loan classification at June 30, 2017 and December 31, 2016.


	At June 30, 2017
	Unpaid
	principal		Recorded		Related
(In thousands)	balance		investment		allowance
With no related allowance recorded:
Commercial real estate	$	893	$	806	$	—
Construction and land development		531		128		—
Commercial and industrial		1,860		1,859		—
Residential real estate		178		89		—
Tax certificates		651		364		—
Total:	$	4,113	$	3,246	$	—


With an allowance recorded:
Residential real estate	$	642	$	525	$	16
Tax certificates		4,194		138		14
Leasing		1,059		1,059		195
Total:	$	5,895	$	1,722	$	225


	At and for the year ended December 31, 2016
	Unpaid						Average		Interest		Interest income
	principal		Recorded		Related		recorded		income		recognized
(In thousands)	balance		investment		allowance		investment		recognized		cash basis
With no related allowance recorded:
Commercial real estate	$	362	$	362	$	—	$	923	$	—	$	—
Construction and land development		546		144		—		145		—		—
Commercial and industrial		2,209		2,105		—		2,296		107		—
Residential real estate		133		83		—		45		4		—
Tax certificates		2,165		1,752		—		1,019		—		—
Total:	$	5,415	$	4,446	$	—	$	4,428	$	111	$	—

With an allowance recorded:
Commercial real estate	$	936	$	542	$	3	$	168	$	—	$	—
Commercial and industrial		—		—		—		17		—		—
Residential real estate		668		570		17		695		—		—
Leases		1,242		1,242		340		910		—		—
Tax certificates		4,202		155		8		26		—		—
Total:	$	7,048	$	2,509	$	368	$	1,816	$	—	$	—

The following tables present the average recorded investment in impaired loans and the related interest income recognized for the three and six months ended June 30, 2017 and 2016.


	For the three months ended June 30, 2017						For the six months ended June 30, 2017
	Average		Interest		Interest income		Average		Interest		Interest income
	recorded		income		recognized		recorded		income		recognized
(In thousands)	investment		recognized		cash basis		investment		recognized		cash basis
Commercial real estate	$	1,230	$	—	$	—	$	1,230	$	—	$	—
Construction and land development		128		—		—		135		—		—
Commercial and industrial		1,871		25		—		1,972		50		—
Residential real estate		582		2		—		610		4		—
Leasing		1,115		—		—		1,067		—		—
Tax certificates		938		—		—		1,345		—		—
Total:	$	5,864	$	27	$	—	$	6,359	$	54	$	—


	For the three months ended June 30, 2016						For the six months ended June 30, 2016
	Average		Interest		Interest income		Average		Interest		Interest income
	recorded		income		recognized		recorded		income		recognized
(In thousands)	investment		recognized		cash basis		investment		recognized		cash basis
Commercial real estate	$	1,239	$	—	$	—	$	1,323	$	—	$	—
Construction and land development		145		—		—		145		—		—
Commercial and industrial		2,313		27		—		2,429		57		—
Residential real estate		764		—		—		807		—		—
Leasing		756		—		—		835		—		—
Tax certificates		1,061		—		—		1,059		—		—
Total:	$	6,278	$	27	$	—	$	6,598	$	57	$	—