Loan Quality and Allowance for Loan Losses | Note 6 . Loan Quality and Allowance for Loan Losses The following table presents, by class, the activity in the Allowance for Loan Losses (ALL) for the periods shown: 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 March 31, 2019 $ 487 $ 132 $ 152 $ 5,906 $ 4,562 $ 72 $ 1,370 $ 12,681 Charge-offs (1) — — (123) (14) (25) — (163) Recoveries 2 1 — 20 9 3 — 35 Provision (51) (20) 10 64 (43) 45 (5) — ALL at June 30, 2019 $ 437 $ 113 $ 162 $ 5,867 $ 4,514 $ 95 $ 1,365 $ 12,553 ALL at December 31, 2018 $ 491 $ 133 $ 108 $ 5,698 $ 4,511 $ 70 $ 1,404 $ 12,415 Charge-offs (34) (1) (3) (186) (75) (51) — (350) Recoveries 3 1 — 21 51 13 — 89 Provision (23) (20) 57 334 27 63 (39) 399 ALL at June 30, 2019 $ 437 $ 113 $ 162 $ 5,867 $ 4,514 $ 95 $ 1,365 $ 12,553 ALL at March 31, 2018 $ 1,043 $ 320 $ 260 $ 6,698 $ 2,073 $ 104 $ 1,491 $ 11,989 Charge-offs - — — — (8,736) (29) — (8,765) Recoveries - — — 16 108 5 — 129 Provision (21) (2) 22 314 8,788 27 1 9,129 ALL at June 30, 2018 $ 1,022 $ 318 $ 282 $ 7,028 $ 2,233 $ 107 $ 1,492 $ 12,482 ALL at December 31, 2017 $ 1,060 $ 330 $ 224 $ 6,526 $ 2,110 $ 105 $ 1,437 $ 11,792 Charge-offs - — — — (8,736) (55) — (8,791) Recoveries 1 — — 16 116 19 — 152 Provision (39) (12) 58 486 8,743 38 55 9,329 ALL at June 30, 2018 $ 1,022 $ 318 $ 282 $ 7,028 $ 2,233 $ 107 $ 1,492 $ 12,482 The following table presents, by class, 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 June 30, 2019 and December 31, 2018 : Residential Real Estate 1-4 Family First Junior Liens & Commercial (Dollars in thousands) Liens Lines of Credit Construction Real Estate Commercial Consumer Unallocated Total June 30, 2019 Loans evaluated for ALL: Individually $ 397 $ — $ 647 $ 12,566 $ — $ — $ — $ 13,610 Collectively 145,874 45,632 13,441 493,087 264,862 5,951 — 968,847 Total $ 146,271 $ 45,632 $ 14,088 $ 505,653 $ 264,862 $ 5,951 $ — $ 982,457 ALL established for loans evaluated: Individually $ — $ — $ — $ — $ — $ — $ — $ — Collectively 437 113 162 5,867 4,514 95 1,365 12,553 ALL at June 30, 2019 $ 437 $ 113 $ 162 $ 5,867 $ 4,514 $ 95 $ 1,365 $ 12,553 December 31, 2018 Loans evaluated for ALL: Individually $ 405 $ — $ 455 $ 10,099 $ 181 $ — $ — $ 11,140 Collectively 148,495 47,220 9,770 477,881 273,873 4,996 — 962,235 Total $ 148,900 $ 47,220 $ 10,225 $ 487,980 $ 274,054 $ 4,996 $ — $ 973,375 ALL established for loans evaluated: Individually $ — $ — $ — $ — $ — $ — $ — $ — Collectively 491 133 108 5,698 4,511 70 1,404 12,415 ALL at December 31, 2018 $ 491 $ 133 $ 108 $ 5,698 $ 4,511 $ 70 $ 1,404 $ 12,415 The following table shows additional information about those loans considered to be impaired at June 30, 2019 and December 31, 2018 : Impaired Loans With No Allowance With Allowance (Dollars in thousands) Unpaid Unpaid Recorded Principal Recorded Principal Related June 30, 2019 Investment Balance Investment Balance Allowance Residential Real Estate 1-4 Family First liens $ 776 $ 776 $ — $ — $ — Junior liens and lines of credit 26 26 — — — Total 802 802 — — — Residential real estate - construction 647 729 — — — Commercial real estate 12,765 13,374 — — — Commercial 145 163 — — — Total $ 14,359 $ 15,068 $ — $ — $ — December 31, 2018 Residential Real Estate 1-4 Family First liens $ 871 $ 958 $ — $ — $ — Junior liens and lines of credit 49 49 — — — Total 920 1,007 — — — Residential real estate - construction 455 531 — — — Commercial real estate 10,236 10,808 — — — Commercial 315 9,763 — — — Total $ 11,926 $ 22,109 $ — $ — $ — The following table shows the average of impaired loans and related interest income for the three and six months ended June 30, 2019 and 2018 : Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Average Interest Average Interest (Dollars in thousands) Recorded Income Recorded Income Investment Recognized Investment Recognized Residential Real Estate 1-4 Family First liens $ 779 $ 11 $ 813 $ 21 Junior liens and lines of credit 26 1 35 1 Total 805 12 848 22 Residential real estate - construction 651 — 652 — Commercial real estate 13,242 102 13,368 204 Commercial 147 — 138 — Total $ 14,845 $ 114 $ 15,006 $ 226 Three Months Ended Six Months Ended June 30, 2018 June 30, 2018 Average Interest Average Interest (Dollars in thousands) Recorded Income Recorded Income Investment Recognized Investment Recognized Residential Real Estate 1-4 Family First liens $ 831 $ 11 $ 818 $ 22 Junior liens and lines of credit 1,045 4 995 10 Total 1,876 15 1,813 32 Residential real estate - construction 463 — 465 — Commercial real estate 10,008 100 10,072 199 Commercial 11,835 — 5,927 — Total $ 24,182 $ 115 $ 18,277 $ 231 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 June 30, 2019 Residential Real Estate 1-4 Family First liens $ 145,271 $ 476 $ 416 $ 28 $ 920 $ 80 $ 146,271 Junior liens and lines of credit 45,440 121 45 — 166 26 45,632 Total 190,711 597 461 28 1,086 106 191,903 Residential real estate - construction 13,441 — — — — 647 14,088 Commercial real estate 499,291 634 982 332 1,948 4,414 505,653 Commercial 264,409 128 180 — 308 145 264,862 Consumer 5,918 29 4 — 33 — 5,951 Total $ 973,770 $ 1,388 $ 1,627 $ 360 $ 3,375 $ 5,312 $ 982,457 December 31, 2018 Residential Real Estate 1-4 Family First liens $ 148,183 $ 322 $ 202 $ 113 $ 637 $ 80 $ 148,900 Junior liens and lines of credit 47,040 131 — 26 157 23 47,220 Total 195,223 453 202 139 794 103 196,120 Residential real estate - construction 9,572 — 198 — 198 455 10,225 Commercial real estate 481,774 1,343 3,323 113 4,779 1,427 487,980 Commercial 273,534 65 40 100 205 315 274,054 Consumer 4,933 46 12 5 63 — 4,996 Total $ 965,036 $ 1,907 $ 3,775 $ 357 $ 6,039 $ 2,300 $ 973,375 The following table reports the risk rating for th ose loan s in the portfolio that are assigned an individual risk rating. 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 June 30, 2019 Residential Real Estate 1-4 Family First liens $ 145,945 $ — $ 326 $ — $ 146,271 Junior liens and lines of credit 45,606 — 26 — 45,632 Total 191,551 — 352 — 191,903 Residential real estate - construction 13,441 — 647 — 14,088 Commercial real estate 497,767 — 7,886 — 505,653 Commercial 263,895 — 967 — 264,862 Consumer 5,951 — — — 5,951 Total $ 972,605 $ — $ 9,852 $ — $ 982,457 December 31, 2018 Residential Real Estate 1-4 Family First liens $ 148,453 $ — $ 447 $ — $ 148,900 Junior liens and lines of credit 47,171 — 49 — 47,220 Total 195,624 — 496 — 196,120 Residential real estate - construction 9,572 — 653 — 10,225 Commercial real estate 479,969 660 7,351 — 487,980 Commercial 272,959 — 1,095 — 274,054 Consumer 4,991 — 5 — 4,996 Total $ 963,115 $ 660 $ 9,600 $ — $ 973,375 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 June 30, 2019 Residential real estate - construction 1 $ 449 $ 449 $ — — $ — Residential real estate 4 667 667 — — — Commercial real estate 11 9,594 9,594 — — — Total 16 $ 10,710 $ 10,710 $ — — $ — December 31, 2018 Residential real estate - construction 1 $ 455 $ — $ 455 — $ — Residential real estate 4 678 678 — — — Commercial real estate 11 10,099 8,809 1,290 — — Total 16 $ 11,232 $ 9,487 $ 1,745 — $ — * The performing status is determined by the loan’s compliance with the modified terms . There were no new TDR loans during 201 9 and 2018 . |