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 First Junior Liens & Commercial (Dollars in thousands) Liens Lines of Credit Construction Real Estate Commercial Consumer Unallocated Total ALL at December 31, 2017 $ 1,060 $ 330 $ 224 $ 6,526 $ 2,110 $ 105 $ 1,437 $ 11,792 Charge-offs — — — — — (26) — (26) Recoveries 1 — — — 8 14 — 23 Provision (18) (10) 36 172 (45) 11 54 200 ALL at March 31, 2018 $ 1,043 $ 320 $ 260 $ 6,698 $ 2,073 $ 104 $ 1,491 $ 11,989 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 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, 2018 and December 31, 2017 : Residential Real Estate 1-4 Family First Junior Liens & Commercial (Dollars in thousands) Liens Lines of Credit Construction Real Estate Commercial Consumer Unallocated Total March 31, 2018 Loans evaluated for ALL: Individually $ 454 $ — $ 466 $ 10,878 $ — $ — $ — $ 11,798 Collectively 155,233 48,856 11,025 422,943 287,680 5,118 — 930,855 Total $ 155,687 $ 48,856 $ 11,491 $ 433,821 $ 287,680 $ 5,118 $ — $ 942,653 ALL established for loans evaluated: Individually $ — $ — $ — $ — $ — $ — $ — $ — Collectively 1,043 320 260 6,698 2,073 104 1,491 11,989 ALL at March 31, 2018 $ 1,043 $ 320 $ 260 $ 6,698 $ 2,073 $ 104 $ 1,491 $ 11,989 December 31, 2017 Loans evaluated for ALL: Individually $ 459 $ — $ 466 $ 10,981 $ — $ — $ — $ 11,906 Collectively 157,975 50,371 9,435 417,447 291,519 5,047 — 931,794 Total $ 158,434 $ 50,371 $ 9,901 $ 428,428 $ 291,519 $ 5,047 $ — $ 943,700 ALL established for loans evaluated: Individually $ — $ — $ — $ — $ — $ — $ — $ — Collectively 1,060 330 224 6,526 2,110 105 1,437 11,792 ALL at December 31, 2017 $ 1,060 $ 330 $ 224 $ 6,526 $ 2,110 $ 105 $ 1,437 $ 11,792 The following table shows additional information about those loans considered to be impaired at March 31, 2018 and December 31, 2017 : Impaired Loans With No Allowance With Allowance (Dollars in thousands) Unpaid Unpaid Recorded Principal Recorded Principal Related March 31, 2018 Investment Balance Investment Balance Allowance Residential Real Estate 1-4 Family First liens $ 803 $ 882 $ — $ — $ — Junior liens and lines of credit — — — — — Total 803 882 — — — Residential real estate - construction 466 531 — — — Commercial real estate 10,949 11,435 — — — Commercial 183 198 — — — Total $ 12,401 $ 13,046 $ — $ — $ — December 31, 2017 Residential Real Estate 1-4 Family First liens $ 869 $ 950 $ — $ — $ — Junior liens and lines of credit — — — — — Total 869 950 — — — Residential real estate - construction 466 531 — — — Commercial real estate 11,061 11,541 — — — Commercial 187 201 — — — Total $ 12,583 $ 13,223 $ — $ — $ — The following table shows the average of impaired loans and related interest income for the three months ended March 31, 2018 and 2017 : Three Months Ended Three Months Ended March 31, 2018 March 31, 2017 Average Interest Average Interest (Dollars in thousands) Recorded Income Recorded Income Investment Recognized Investment Recognized Residential Real Estate 1-4 Family First liens $ 805 $ 11 $ 919 $ 10 Junior liens and lines of credit — — 85 — Total 805 11 1,004 10 Residential real estate - construction 466 — 479 — Commercial real estate 10,994 105 13,519 116 Commercial 185 — 23 — Total $ 12,450 $ 116 $ 15,025 $ 126 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, 2018 Residential Real Estate 1-4 Family First liens $ 155,126 $ 398 $ 56 $ — $ 454 $ 107 $ 155,687 Junior liens and lines of credit 48,743 85 28 — 113 — 48,856 Total 203,869 483 84 — 567 107 204,543 Residential real estate - construction 11,025 — — — — 466 11,491 Commercial real estate 431,542 348 — 89 437 1,842 433,821 Commercial 287,289 54 154 — 208 183 287,680 Consumer 5,100 15 3 — 18 — 5,118 Total $ 938,825 $ 900 $ 241 $ 89 $ 1,230 $ 2,598 $ 942,653 December 31, 2017 Residential Real Estate 1-4 Family First liens $ 157,247 $ 485 $ 534 $ — $ 1,019 $ 168 $ 158,434 Junior liens and lines of credit 50,202 139 30 — 169 — 50,371 Total 207,449 624 564 — 1,188 168 208,805 Residential real estate - construction 9,435 — — — — 466 9,901 Commercial real estate 425,806 421 347 — 768 1,854 428,428 Commercial 291,221 111 — — 111 187 291,519 Consumer 5,017 23 7 — 30 — 5,047 Total $ 938,928 $ 1,179 $ 918 $ — $ 2,097 $ 2,675 $ 943,700 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, 2018 Residential Real Estate 1-4 Family First liens $ 155,040 $ — $ 647 $ — $ 155,687 Junior liens and lines of credit 48,856 — — — 48,856 Total 203,896 — 647 — 204,543 Residential real estate - construction 10,370 — 1,121 — 11,491 Commercial real estate 423,072 2,393 8,356 — 433,821 Commercial 286,905 — 775 — 287,680 Consumer 5,117 — 1 — 5,118 Total $ 929,360 $ 2,393 $ 10,900 $ — $ 942,653 December 31, 2017 Residential Real Estate 1-4 Family First liens $ 157,395 $ — $ 1,039 $ — $ 158,434 Junior liens and lines of credit 50,371 — — — 50,371 Total 207,766 — 1,039 — 208,805 Residential real estate - construction 8,893 — 1,008 — 9,901 Commercial real estate 419,277 680 8,471 — 428,428 Commercial 289,916 — 1,603 — 291,519 Consumer 5,047 — — — 5,047 Total $ 930,899 $ 680 $ 12,121 $ — $ 943,700 The following table presents information on the Bank’s Troubled Debt Restructuring (TDR) loans: Troubled Debt Restructurings Within the Last 12 Months That Have Defaulted (Dollars in thousands) Troubled Debt Restructurings On Modified Terms Number of Recorded Number of Recorded Contracts Investment Performing* Nonperforming* Contracts Investment March 31, 2018 Residential real estate - construction 1 $ 466 $ — $ 466 — $ — Residential real estate 5 732 696 36 — — Commercial real estate 11 10,878 9,107 1,771 — — Total 17 $ 12,076 $ 9,803 $ 2,273 — $ — December 31, 2017 Residential real estate - construction 1 $ 466 $ 466 $ — — $ — Residential real estate 5 737 701 36 — — Commercial real estate 11 10,983 10,388 595 — — Total 17 $ 12,186 $ 11,555 $ 631 — $ — * The performing status is determined by the loan’s compliance with the modified terms . There were no new TDR loans during 201 8 and 2017 . |