Loans and Allowance for Loan Losses [Text Block] | Loans and Allowance for Loan Losses Loans consisted of the following segments as of March 31, 2017 and December 31, 2016 . March 31, 2017 December 31, 2016 Commercial $ 332,771 $ 334,014 Real estate: Construction, land and land development 234,010 205,610 1-4 family residential first mortgages 48,158 47,184 Home equity 17,909 18,057 Commercial 807,319 788,000 Consumer and other loans 7,964 8,355 1,448,131 1,401,220 Net unamortized fees and costs (1,396 ) (1,350 ) $ 1,446,735 $ 1,399,870 Real estate loans of approximately $710,000 and $680,000 were pledged as security for Federal Home Loan Bank (FHLB) advances as of March 31, 2017 and December 31, 2016 , respectively. Loans are stated at the principal amounts outstanding, net of unamortized loan fees and costs, with interest income recognized on the interest method based upon those outstanding loan balances. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. Loans are reported by the portfolio segments identified above and are analyzed by management on this basis. All loan policies identified below apply to all segments of the loan portfolio. Delinquencies are determined based on the payment terms of the individual loan agreements. The accrual of interest on past due and other impaired loans is generally discontinued at 90 days past due or when, in the opinion of management, the borrower may be unable to make all payments pursuant to contractual terms. Unless considered collectible, all interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income, if accrued in the current year, or charged to the allowance for loan losses, if accrued in the prior year. Generally, all payments received while a loan is on nonaccrual status are applied to the principal balance of the loan. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. A loan is classified as a troubled debt restructured (TDR) loan when the Company separately concludes that a borrower is experiencing financial difficulties and a concession is granted that would not otherwise be considered. Concessions may include a restructuring of the loan terms to alleviate the burden of the borrower's cash requirements, such as an extension of the payment terms beyond the original maturity date or a change in the interest rate charged. TDR loans with extended payment terms are accounted for as impaired until performance is established. A change to the interest rate would change the classification of a loan to a TDR loan if the restructured loan yields a rate that is below a market rate for that of a new loan with comparable risk. TDR loans with below-market rates are considered impaired until fully collected. TDR loans may also be reported as nonaccrual or past due 90 days if they are not performing per the restructured terms. Based upon its ongoing assessment of credit quality within the loan portfolio, the Company maintains a Watch List, which includes loans classified as Doubtful, Substandard and Watch according to the Company's classification criteria. These loans involve the anticipated potential for payment defaults or collateral inadequacies. A loan on the Watch List is considered impaired when management believes it is probable the Company will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan agreement. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan's effective interest rate or, as a practical expedient, at the loan's observable market price or the fair value of the collateral if the loan is collateral dependent. The amount of impairment, if any, and any subsequent changes are included in the allowance for loan losses. TDR loans totaled $391 and $426 as of March 31, 2017 and December 31, 2016 , respectively, and were included in nonaccrual loans. There were no loan modifications considered to be TDR that occurred during the three months ended March 31, 2017 and 2016 . No TDR loans that have been modified within the 12 months preceding March 31, 2017 and 2016 have subsequently had a payment default. A TDR loan is considered to have a payment default when it is past due 30 days or more. The following table summarizes the recorded investment in impaired loans by segment, broken down by loans with no related allowance for loan losses and loans with a related allowance and the amount of that allowance as of March 31, 2017 and December 31, 2016 . March 31, 2017 December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Commercial $ — $ — $ — $ 35 $ 35 $ — Real estate: Construction, land and land development — — — — — — 1-4 family residential first mortgages 104 104 — 108 108 — Home equity 29 29 — 41 41 — Commercial 304 304 — 335 335 — Consumer and other loans — — — — — — 437 437 — 519 519 — With an allowance recorded: Commercial 87 87 87 91 91 91 Real estate: Construction, land and land development — — — — — — 1-4 family residential first mortgages — — — — — — Home equity 264 264 264 276 276 276 Commercial 132 132 132 136 136 136 Consumer and other loans — — — — — — 483 483 483 503 503 503 Total: Commercial 87 87 87 126 126 91 Real estate: Construction, land and land development — — — — — — 1-4 family residential first mortgages 104 104 — 108 108 — Home equity 293 293 264 317 317 276 Commercial 436 436 132 471 471 136 Consumer and other loans — — — — — — $ 920 $ 920 $ 483 $ 1,022 $ 1,022 $ 503 The balance of impaired loans at March 31, 2017 and December 31, 2016 was composed of 8 and 10 different borrowers, respectively. The Company has no commitments to advance additional funds on any of the impaired loans. The following table summarizes the average recorded investment and interest income recognized on impaired loans by segment for the three months ended March 31, 2017 and 2016 . Three Months Ended March 31, 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ 26 $ — $ — $ — Real estate: Construction, land and land development — — 28 — 1-4 family residential first mortgages 107 — 347 1 Home equity 38 — — — Commercial 319 — 440 — Consumer and other loans — — — — 490 — 815 1 With an allowance recorded: Commercial 89 — 140 — Real estate: Construction, land and land development — — — — 1-4 family residential first mortgages — — — — Home equity 272 — 267 — Commercial 134 — 152 — Consumer and other loans — — — — 495 — 559 — Total: Commercial 115 — 140 — Real estate: Construction, land and land development — — 28 — 1-4 family residential first mortgages 107 — 347 1 Home equity 310 — 267 — Commercial 453 — 592 — Consumer and other loans — — — — $ 985 $ — $ 1,374 $ 1 The following tables provide an analysis of the payment status of the recorded investment in loans as of March 31, 2017 and December 31, 2016 . March 31, 2017 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Nonaccrual Loans Total Loans Commercial $ 44 $ — $ — $ 44 $ 332,640 $ 87 $ 332,771 Real estate: Construction, land and land development — — — — 234,010 — 234,010 1-4 family residential first mortgages — — — — 48,054 104 48,158 Home equity — — — — 17,616 293 17,909 Commercial — — — — 806,883 436 807,319 Consumer and other — — — — 7,964 — 7,964 Total $ 44 $ — $ — $ 44 $ 1,447,167 $ 920 $ 1,448,131 December 31, 2016 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Nonaccrual Loans Total Loans Commercial $ 109 $ — $ — $ 109 $ 333,779 $ 126 $ 334,014 Real estate: Construction, land and land development — — — — 205,610 — 205,610 1-4 family residential first mortgages 64 — — 64 47,012 108 47,184 Home equity — — — — 17,740 317 18,057 Commercial — — — — 787,529 471 788,000 Consumer and other — — — — 8,355 — 8,355 Total $ 173 $ — $ — $ 173 $ 1,400,025 $ 1,022 $ 1,401,220 The following tables present the recorded investment in loans by credit quality indicator and loan segment as of March 31, 2017 and December 31, 2016 . March 31, 2017 Pass Watch Substandard Doubtful Total Commercial $ 328,736 $ 2,763 $ 1,272 $ — $ 332,771 Real estate: Construction, land and land development 232,972 — 1,038 — 234,010 1-4 family residential first mortgages 47,203 851 104 — 48,158 Home equity 17,462 60 387 — 17,909 Commercial 787,868 18,717 734 — 807,319 Consumer and other 7,919 45 — — 7,964 Total $ 1,422,160 $ 22,436 $ 3,535 $ — $ 1,448,131 December 31, 2016 Pass Watch Substandard Doubtful Total Commercial $ 329,366 $ 3,303 $ 1,345 $ — $ 334,014 Real estate: Construction, land and land development 204,572 — 1,038 — 205,610 1-4 family residential first mortgages 46,278 798 108 — 47,184 Home equity 17,646 — 411 — 18,057 Commercial 769,010 18,392 598 — 788,000 Consumer and other 8,355 — — — 8,355 Total $ 1,375,227 $ 22,493 $ 3,500 $ — $ 1,401,220 All loans are subject to the assessment of a credit quality indicator. Risk ratings are assigned for each loan at the time of approval, and they change as circumstances dictate during the term of the loan. The Company utilizes a 9-point risk rating scale as shown below, with ratings 1 - 5 included in the Pass column, rating 6 included in the Watch column, ratings 7 - 8 included in the Substandard column and rating 9 included in the Doubtful column. All loans classified as impaired that are included in the specific evaluation of the allowance for loan losses are included in the Substandard column along with all other loans with ratings of 7 - 8. Risk rating 1: The loan is secured by cash equivalent collateral. Risk rating 2: The loan is secured by properly margined marketable securities, bonds or cash surrender value of life insurance. Risk rating 3: The borrower is in strong financial condition and has strong debt service capacity. The loan is performing as agreed, and the financial characteristics and trends of the borrower exceed industry statistics. Risk rating 4: The borrower's financial condition is satisfactory and stable. The borrower has satisfactory debt service capacity, and the loan is well secured. The loan is performing as agreed, and the financial characteristics and trends fall in line with industry statistics. Risk rating 5: The borrower's financial condition is less than satisfactory. The loan is still generally paying as agreed, but strained cash flows may cause some slowness in payments. The collateral values adequately preclude loss on the loan. Financial characteristics and trends lag industry statistics. There may be noncompliance with loan covenants. Risk rating 6: The borrower's financial condition is deficient. Payment delinquencies may be more common. Collateral values still protect from loss, but margins are narrow. The loan may be reliant on secondary sources of repayment, including liquidation of collateral and guarantor support. Risk rating 7: The loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Well-defined weaknesses exist that jeopardize the liquidation of the debt. The Company is inadequately protected by the valuation or paying capacity of the collateral pledged. If deficiencies are not corrected, there is a distinct possibility that a loss will be sustained. Risk rating 8: All the characteristics of rating 7 exist with the added condition that the loan is past due more than 90 days or there is reason to believe the Company will not receive its principal and interest according to the terms of the loan agreement. Risk rating 9: All the weaknesses inherent in risk ratings 7 and 8 exist with the added condition that collection or liquidation, on the basis of currently known facts, conditions and values, is highly questionable and improbable. A loan reaching this category would most likely be charged off. Credit quality indicators for all loans and the Company's risk rating process are dynamic and updated on a continuous basis. Risk ratings are updated as circumstances that could affect the repayment of an individual loan are brought to management's attention through an established monitoring process. Individual lenders initiate changes as appropriate for ratings 1 through 5, and changes for ratings 6 through 9 are initiated via communications with management. The likelihood of loss increases as the risk rating increases and is generally preceded by a loan appearing on the Watch List, which consists of all loans with a risk rating of 6 or worse. Written action plans with firm target dates for resolution of identified problems are maintained and reviewed on a quarterly basis for all segments of criticized loans. In addition to the Company's internal credit monitoring practices and procedures, an outsourced independent credit review function is in place to further assess assigned internal risk classifications and monitor compliance with internal lending policies and procedures. In all portfolio segments, the primary risks are that a borrower's income stream diminishes to the point that the borrower is not able to make scheduled principal and interest payments and any collateral securing the loan declines in value. The risk of declining collateral values is present for most types of loans. Commercial loans consist primarily of loans to businesses for various purposes, including revolving lines to finance current operations, inventory and accounts receivable, and capital expenditure loans to finance equipment and other fixed assets. These loans generally have short maturities, have either adjustable or fixed interest rates, and are either unsecured or secured by inventory, accounts receivable and/or fixed assets. For commercial loans, the primary source of repayment is from the operation of the business. Real estate loans include various types of loans for which the Company holds real property as collateral, and consist of loans on commercial properties and single and multifamily residences. Real estate loans are typically structured to mature or reprice every five years with payments based on amortization periods up to 30 years. The majority of construction loans are to contractors and developers for construction of commercial buildings or residential real estate. These loans typically have maturities of up to 24 months. The Company's loan policy includes minimum appraisal and other credit guidelines. Consumer loans include loans extended to individuals for household, family and other personal expenditures not secured by real estate. The majority of the Company's consumer lending is for vehicles, consolidation of personal debts and household improvements. The repayment source for consumer loans, including 1-4 family residential and home equity loans, is typically wages. The allowance for loan losses is established through a provision for loan losses charged to expense. The allowance is an amount that management believes will be adequate to absorb probable losses on existing loans based on an evaluation of the collectability of loans and prior loss experience. This evaluation also takes into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, the review of specific problem loans, and the current economic conditions that may affect the borrower's ability to pay. Loans are charged-off against the allowance for loan losses when management believes that collectability of the principal is unlikely. While management uses the best information available to make its evaluations, future adjustments to the allowance may be necessary if there are significant changes in economic conditions or the other factors relied upon. The allowance for loan losses consists of specific and general components. The specific component relates to loans that meet the definition of impaired. The general component covers the remaining loans and is based on historical loss experience adjusted for qualitative factors such as delinquency trends, loan growth, economic elements and local market conditions. These same policies are applied to all segments of loans. In addition, regulatory agencies, as an integral part of their examination processes, periodically review the Company's allowance for loan losses, and may require the Company to make additions to the allowance based on their judgment about information available to them at the time of their examinations. The following tables detail the changes in the allowance for loan losses by segment for the three months ended March 31, 2017 and 2016 . Three Months Ended March 31, 2017 Real Estate Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total Beginning balance $ 3,881 $ 2,639 $ 317 $ 478 $ 8,697 $ 100 $ 16,112 Charge-offs (60 ) — — — — — (60 ) Recoveries 59 303 1 8 3 1 375 Provision (1) (80 ) (28 ) (3 ) (39 ) 148 2 — Ending balance $ 3,800 $ 2,914 $ 315 $ 447 $ 8,848 $ 103 $ 16,427 Three Months Ended March 31, 2016 Real Estate Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total Beginning balance $ 4,369 $ 2,338 $ 508 $ 481 $ 7,254 $ 17 $ 14,967 Charge-offs — — — — — — — Recoveries 42 44 11 7 3 6 113 Provision (1) (268 ) 280 (123 ) 31 227 53 200 Ending balance $ 4,143 $ 2,662 $ 396 $ 519 $ 7,484 $ 76 $ 15,280 (1) The negative provisions for the various segments are either related to the decline in outstanding balances in each of those portfolio segments during the time periods disclosed and/or improvement in the credit quality factors related to those portfolio segments. The following tables present a breakdown of the allowance for loan losses disaggregated on the basis of impairment analysis method by segment as of March 31, 2017 and December 31, 2016 . March 31, 2017 Real Estate Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total Ending balance: Individually evaluated for impairment $ 87 $ — $ — $ 264 $ 132 $ — $ 483 Collectively evaluated for impairment 3,713 2,914 315 183 8,716 103 15,944 Total $ 3,800 $ 2,914 $ 315 $ 447 $ 8,848 $ 103 $ 16,427 December 31, 2016 Real Estate Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total Ending balance: Individually evaluated for impairment $ 91 $ — $ — $ 276 $ 136 $ — $ 503 Collectively evaluated for impairment 3,790 2,639 317 202 8,561 100 15,609 Total $ 3,881 $ 2,639 $ 317 $ 478 $ 8,697 $ 100 $ 16,112 The following tables present the recorded investment in loans, exclusive of unamortized fees and costs, disaggregated on the basis of impairment analysis method by segment as of March 31, 2017 and December 31, 2016 . March 31, 2017 Real Estate Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total Ending balance: Individually evaluated for impairment $ 87 $ — $ 104 $ 293 $ 436 $ — $ 920 Collectively evaluated for impairment 332,684 234,010 48,054 17,616 806,883 7,964 1,447,211 Total $ 332,771 $ 234,010 $ 48,158 $ 17,909 $ 807,319 $ 7,964 $ 1,448,131 December 31, 2016 Real Estate Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total Ending balance: Individually evaluated for impairment $ 126 $ — $ 108 $ 317 $ 471 $ — $ 1,022 Collectively evaluated for impairment 333,888 205,610 47,076 17,740 787,529 8,355 1,400,198 Total $ 334,014 $ 205,610 $ 47,184 $ 18,057 $ 788,000 $ 8,355 $ 1,401,220 |