Loan Quality And Allowance For Loan Losses | Note 6 . Loan Quality and Allowance for Loan Losses The following table presents, by c l ass , the activity in the Allowance for Loan Losses (ALL) for the periods ended: Residential Real Estate 1-4 Family Junior Liens & Commercial (Dollars in thousands) First Liens Lines of Credit Construction Real Estate Commercial Consumer Unallocated Total ALL at December 31, 2016 $ 1,105 $ 323 $ 224 $ 6,109 $ 1,893 $ 100 $ 1,321 $ 11,075 Charge-offs (8) - - - - (28) - (36) Recoveries 1 - - - 102 16 - 119 Provision 2 (2) 50 17 (11) 11 53 120 ALL at March 31, 2017 $ 1,100 $ 321 $ 274 $ 6,126 $ 1,984 $ 99 $ 1,374 $ 11,278 ALL at December 31, 2015 $ 989 $ 308 $ 194 $ 5,649 $ 1,519 $ 102 $ 1,325 $ 10,086 Charge-offs (3) - - (3) (63) (42) - (111) Recoveries 32 - - - 15 20 - 67 Provision (21) 8 5 535 39 19 (285) 300 ALL at March 31, 2016 $ 997 $ 316 $ 199 $ 6,181 $ 1,510 $ 99 $ 1,040 $ 10,342 T he following table presents, by c la ss , loans that were evaluated for the ALL under the specific reserve (individually) and those that were evaluated under the general reserve (collectively) and the amount of the ALL established in each class as of March 31 , 2017 and December 31, 201 6 : Residential Real Estate 1-4 Family Junior Liens & Commercial (Dollars in thousands) First Liens Lines of Credit Construction Real Estate Commercial Consumer Unallocated Total March 31, 2017 Loans evaluated for ALL: Individually $ 624 $ 52 $ 478 $ 13,946 $ - $ - $ - $ 15,100 Collectively 165,940 49,341 10,460 383,375 274,722 4,591 - 888,429 Total $ 166,564 $ 49,393 $ 10,938 $ 397,321 $ 274,722 $ 4,591 $ - $ 903,529 ALL established for loans evaluated: Individually $ - $ - $ - $ - $ - $ - $ - $ - Collectively 1,100 321 274 6,126 1,984 99 1,374 11,278 ALL at March 31, 2017 $ 1,100 $ 321 $ 274 $ 6,126 $ 1,984 $ 99 $ 1,374 $ 11,278 December 31, 2016 Loans evaluated for ALL: Individually $ 628 $ 52 $ 480 $ 13,523 $ - $ - $ - $ 14,683 Collectively 167,942 50,161 8,495 377,061 270,826 4,705 - 879,190 Total $ 168,570 $ 50,213 $ 8,975 $ 390,584 $ 270,826 $ 4,705 $ - $ 893,873 ALL established for loans evaluated: Individually $ - $ - $ - $ - $ - $ - $ - $ - Collectively 1,105 323 224 6,109 1,893 100 1,321 11,075 ALL at December 31, 2016 $ 1,105 $ 323 $ 224 $ 6,109 $ 1,893 $ 100 $ 1,321 $ 11,075 The following table shows additional information about those loans considered to be impaired at March 31 , 2017 and December 31, 201 6 : Impaired Loans With No Allowance With Allowance (Dollars in thousands) Unpaid Unpaid Recorded Principal Recorded Principal Related March 31, 2017 Investment Balance Investment Balance Allowance Residential Real Estate 1-4 Family First liens $ 914 $ 987 $ - $ - $ - Junior liens and lines of credit 85 93 - - - Total 999 1,080 - - - Residential real estate - construction 478 534 - - - Commercial real estate 13,946 14,634 - - - Commercial 23 35 - - - Total $ 15,446 $ 16,283 $ - $ - $ - December 31, 2016 Residential Real Estate 1-4 Family First liens $ 956 $ 1,030 $ - $ - $ - Junior liens and lines of credit 85 93 - - - Total 1,041 1,123 - - - Residential real estate - construction 480 535 - - - Commercial real estate 13,523 14,133 - - Commercial 23 35 - - - Total $ 15,067 $ 15,826 $ - $ - $ - The following table shows the average of impaired loans and related interest income for the three months ended March 31, 2017 and 2016 : Three Months Ended March 31, 2017 Average Interest (Dollars in thousands) Recorded Income Investment Recognized Residential Real Estate 1-4 Family First liens $ 919 $ 10 Junior liens and lines of credit 85 - Total 1,004 10 Residential real estate - construction 479 - Commercial real estate 13,519 116 Commercial 23 - Total $ 15,025 $ 126 Three Months Ended March 31, 2016 Average Interest (Dollars in thousands) Recorded Income Investment Recognized Residential Real Estate 1-4 Family First liens $ 1,069 $ 6 Junior liens and lines of credit 70 - Total 1,139 6 Residential real estate - construction 502 - Commercial real estate 14,372 121 Commercial 44 - Total $ 16,057 $ 127 The following table presents the aging of payments of the loan portfolio : (Dollars in thousands) Loans Past Due and Still Accruing Total Current 30-59 Days 60-89 Days 90 Days+ Total Non-Accrual Loans March 31, 2017 Residential Real Estate 1-4 Family First liens $ 165,959 $ 375 $ 34 $ - $ 409 $ 196 $ 166,564 Junior liens and lines of credit 49,180 98 30 - 128 85 49,393 Total 215,139 473 64 - 537 281 215,957 Residential real estate - construction 10,460 - - - - 478 10,938 Commercial real estate 390,943 378 1,519 - 1,897 4,481 397,321 Commercial 274,454 55 190 - 245 23 274,722 Consumer 4,575 8 8 - 16 - 4,591 Total $ 895,571 $ 914 $ 1,781 $ - $ 2,695 $ 5,263 $ 903,529 December 31, 2016 Residential Real Estate 1-4 Family First liens $ 166,689 $ 1,236 $ 414 $ - $ 1,650 $ 231 $ 168,570 Junior liens and lines of credit 50,031 96 - - 96 86 50,213 Total 216,720 1,332 414 - 1,746 317 218,783 Residential real estate - construction 8,495 - - - - 480 8,975 Commercial real estate 384,658 858 447 665 1,970 3,956 390,584 Commercial 270,478 250 75 - 325 23 270,826 Consumer 4,672 30 3 - 33 - 4,705 Total $ 885,023 $ 2,470 $ 939 $ 665 $ 4,074 $ 4,776 $ 893,873 The following table reports the internal credit rating for the loan portfolio. Consumer purpose loans are assigned a rating of either pass or substandard based on the performance status of the loans. Substandard consumer loans are comprised of loans 90 days or more past due and still accruing , and nonaccrual loans. Commercial purpose loans may be assigned any rating in accordance with the Bank’s internal risk rating system. Pass Special Mention Substandard Doubtful (Dollars in thousands) (1-5) (6) (7) (8) Total March 31, 2017 Residential Real Estate 1-4 Family First liens $ 165,245 $ 187 $ 1,132 $ - $ 166,564 Junior liens and lines of credit 49,207 28 158 - 49,393 Total 214,452 215 1,290 - 215,957 Residential real estate - construction 10,188 - 750 - 10,938 Commercial real estate 383,578 - 13,743 - 397,321 Commercial 271,690 178 2,854 - 274,722 Consumer 4,591 - - - 4,591 Total $ 884,499 $ 393 $ 18,637 $ - $ 903,529 December 31, 2016 Residential Real Estate 1-4 Family First liens $ 167,199 $ 227 $ 1,144 $ - $ 168,570 Junior liens and lines of credit 50,017 28 168 - 50,213 Total 217,216 255 1,312 - 218,783 Residential real estate - construction 8,220 - 755 - 8,975 Commercial real estate 377,283 - 13,301 - 390,584 Commercial 267,901 957 1,968 - 270,826 Consumer 4,705 - - - 4,705 Total $ 875,325 $ 1,212 $ 17,336 $ - $ 893,873 The following table presents information on the Bank’s Troubled Debt Restructuring (TDR) loans: Troubled Debt Restructurings That Have Defaulted on Modified Terms in the (Dollars in thousands) Troubled Debt Restructurings Last Twelve Months Number of Recorded Number of Recorded Contracts Investment Performing* Nonperforming* Contracts Investment March 31, 2017 Residential real estate - construction 1 $ 478 $ 478 $ - - $ - Residential real estate 5 869 718 151 1 151 Commercial real estate 11 11,950 10,700 1,250 1 1,250 Total 17 $ 13,297 $ 11,896 $ 1,401 2 $ 1,401 December 31, 2016 Residential real estate - construction 1 $ 480 $ 480 $ - - $ - Residential real estate 5 875 724 151 1 151 Commercial real estate 11 12,064 10,814 1,250 1 1,250 Total 17 $ 13,419 $ 12,018 $ 1,401 2 $ 1,401 * The performing status is determined by the loan’s compliance with the modified terms . The re were no new TDR loans made in the first three months of 2017. The following table reports new TDR loans during 2016, concession granted and the recorded investment as of March 3 1 , 2016 : New During Period Number of Pre-TDR After-TDR Recorded Three Months Ended March 31, 2016 Contracts Modification Modification Investment Concession Commercial real estate 1 $ 525 $ 525 $ 508 maturity |