Loans | Loans Classes of loans are as follows: June 30, December 31, (Amounts In Thousands) Agricultural $ 89,129 $ 101,588 Commercial and financial 170,346 184,199 Real estate: Construction, 1 to 4 family residential 57,720 51,346 Construction, land development and commercial 117,738 83,121 Mortgage, farmland 191,194 187,856 Mortgage, 1 to 4 family first liens 743,450 727,160 Mortgage, 1 to 4 family junior liens 119,288 117,873 Mortgage, multi-family 285,588 271,974 Mortgage, commercial 319,825 323,409 Loans to individuals 24,485 24,019 Obligations of state and political subdivisions 51,199 52,371 $ 2,169,962 $ 2,124,916 Net unamortized fees and costs 793 768 $ 2,170,755 $ 2,125,684 Less allowance for loan losses 27,290 26,510 $ 2,143,465 $ 2,099,174 Changes in the allowance for loan losses, the allowance for loan losses applicable to impaired loans and the related loan balance of impaired loans for the three and six months ended June 30, 2016 were as follows: Three Months Ended June 30, 2016 Agricultural Commercial and Financial Real Estate: Construction and land development Real Estate: Mortgage, farmland Real Estate: Mortgage, 1 to 4 family Real Estate: Mortgage, multi- family and commercial Other Total (Amounts In Thousands) Allowance for loan losses: Beginning balance $ 2,954 $ 4,311 $ 2,759 $ 3,944 $ 8,036 $ 4,190 $ 936 $ 27,130 Charge-offs (25 ) (79 ) — — (184 ) — (108 ) (396 ) Recoveries 30 367 555 — 279 8 38 1,277 Provision 38 (588 ) (416 ) (17 ) 95 3 164 (721 ) Ending balance $ 2,997 $ 4,011 $ 2,898 $ 3,927 $ 8,226 $ 4,201 $ 1,030 $ 27,290 Six Months Ended June 30, 2016 Agricultural Commercial and Financial Real Estate: Construction and land development Real Estate: Mortgage, farmland Real Estate: Mortgage, 1 to 4 family Real Estate: Mortgage, multi- family and commercial Other Total (Amounts In Thousands) Allowance for loan losses: Beginning balance $ 3,082 $ 4,517 $ 2,280 $ 3,342 $ 8,172 $ 4,223 $ 894 $ 26,510 Charge-offs (25 ) (134 ) — (10 ) (528 ) (66 ) (277 ) (1,040 ) Recoveries 172 620 607 — 492 19 82 1,992 Provision (232 ) (992 ) 11 595 90 25 331 (172 ) Ending balance $ 2,997 $ 4,011 $ 2,898 $ 3,927 $ 8,226 $ 4,201 $ 1,030 $ 27,290 Ending balance, individually evaluated for impairment $ 837 $ 217 $ 13 $ 638 $ 246 $ 75 $ 70 $ 2,096 Ending balance, collectively evaluated for impairment $ 2,160 $ 3,794 $ 2,885 $ 3,289 $ 7,980 $ 4,126 $ 960 $ 25,194 Loans: Ending balance $ 89,129 $ 170,346 $ 175,458 $ 191,194 $ 862,738 $ 605,413 $ 75,684 $ 2,169,962 Ending balance, individually evaluated for impairment $ 12,577 $ 2,303 $ 698 $ 8,514 $ 5,646 $ 4,043 $ 70 $ 33,851 Ending balance, collectively evaluated for impairment $ 76,552 $ 168,043 $ 174,760 $ 182,680 $ 857,092 $ 601,370 $ 75,614 $ 2,136,111 Changes in the allowance for loan losses for the three and six months ended June 30, 2015 were as follows: Three Months Ended June 30, 2015 Agricultural Commercial and Financial Real Estate: Construction and land development Real Estate: Mortgage, farmland Real Estate: Mortgage, 1 to 4 family Real Estate: Mortgage, multi- family and commercial Other Total (Amounts In Thousands) Allowance for loan losses: Beginning balance $ 2,544 $ 4,358 $ 2,250 $ 2,777 $ 7,456 $ 4,125 $ 850 $ 24,360 Charge-offs (214 ) (250 ) (63 ) — (321 ) (1 ) (102 ) (951 ) Recoveries 1 334 153 — 146 1,200 40 1,874 Provision 452 256 685 48 115 (1,213 ) 174 517 Ending balance $ 2,783 $ 4,698 $ 3,025 $ 2,825 $ 7,396 $ 4,111 $ 962 $ 25,800 Six Months Ended June 30, 2015 Agricultural Commercial and Financial Real Estate: Construction and land development Real Estate: Mortgage, farmland Real Estate: Mortgage, 1 to 4 family Real Estate: Mortgage, multi- family and commercial Other Total (Amounts In Thousands) Allowance for loan losses: Beginning balance $ 2,515 $ 4,231 $ 2,241 $ 2,672 $ 7,419 $ 4,195 $ 747 $ 24,020 Charge-offs (257 ) (316 ) (147 ) — (668 ) (180 ) (150 ) (1,718 ) Recoveries 83 735 304 6 559 1,270 86 3,043 Provision 442 48 627 147 86 (1,174 ) 279 455 Ending balance $ 2,783 $ 4,698 $ 3,025 $ 2,825 $ 7,396 $ 4,111 $ 962 $ 25,800 Ending balance, individually evaluated for impairment $ 2 $ 507 $ 11 $ — $ 76 $ 55 $ 15 $ 666 Ending balance, collectively evaluated for impairment $ 2,781 $ 4,191 $ 3,014 $ 2,825 $ 7,320 $ 4,056 $ 947 $ 25,134 Loans: Ending balance $ 91,095 $ 172,854 $ 151,533 $ 173,529 $ 808,273 $ 553,924 $ 75,818 $ 2,027,026 Ending balance, individually evaluated for impairment $ 1,593 $ 2,481 $ 656 $ 2,314 $ 3,707 $ 3,407 $ 15 $ 14,173 Ending balance, collectively evaluated for impairment $ 89,502 $ 170,373 $ 150,877 $ 171,215 $ 804,566 $ 550,517 $ 75,803 $ 2,012,853 The following table presents the credit quality indicators by type of loans in each category as of June 30, 2016 and December 31, 2015 , respectively (amounts in thousands): Agricultural Commercial and Financial Real Estate: Construction, 1 to 4 family residential Real Estate: Construction, land development and commercial June 30, 2016 Grade: Excellent $ 1,957 $ 3,369 $ — $ 252 Good 15,716 34,040 1,593 12,054 Satisfactory 35,194 96,432 39,300 78,402 Monitor 9,666 19,601 11,156 20,369 Special Mention 12,794 11,874 5,065 6,220 Substandard 13,802 5,030 606 441 Total $ 89,129 $ 170,346 $ 57,720 $ 117,738 Real Estate: Mortgage, farmland Real Estate: Mortgage, 1 to 4 family first liens Real Estate: Mortgage, 1 to 4 family junior liens Real Estate: Mortgage, multi- family June 30, 2016 Grade: Excellent $ 2,429 $ 547 $ — $ 6,466 Good 45,441 15,155 2,492 65,693 Satisfactory 98,720 640,462 109,301 179,886 Monitor 28,893 49,621 3,937 31,001 Special Mention 6,584 17,269 1,846 1,983 Substandard 9,127 20,396 1,712 559 Total $ 191,194 $ 743,450 $ 119,288 $ 285,588 Real Estate: Mortgage, commercial Loans to individuals Obligations of state and political subdivisions Total June 30, 2016 Grade: Excellent $ 15,478 $ — $ 2,326 $ 32,824 Good 87,299 83 36,118 315,684 Satisfactory 186,309 23,753 12,249 1,500,008 Monitor 21,841 226 506 196,817 Special Mention 4,786 213 — 68,634 Substandard 4,112 210 — 55,995 Total $ 319,825 $ 24,485 $ 51,199 $ 2,169,962 Agricultural Commercial and Financial Real Estate: Construction, 1 to 4 family residential Real Estate: Construction, land development and commercial December 31, 2015 Grade: Excellent $ 1,786 $ 3,298 $ — $ 260 Good 15,959 38,764 1,898 11,570 Satisfactory 36,819 102,188 34,357 52,731 Monitor 18,064 27,181 8,684 11,550 Special Mention 25,356 8,231 5,842 6,542 Substandard 3,604 4,537 565 468 Total $ 101,588 $ 184,199 $ 51,346 $ 83,121 Real Estate: Mortgage, farmland Real Estate: Mortgage, 1 to 4 family first liens Real Estate: Mortgage, 1 to 4 family junior liens Real Estate: Mortgage, multi- family December 31, 2015 Grade: Excellent $ 2,559 $ 426 $ — $ 6,651 Good 31,186 15,773 2,992 64,002 Satisfactory 112,038 620,731 107,091 166,193 Monitor 27,304 55,499 4,198 29,732 Special Mention 11,181 16,237 1,846 4,873 Substandard 3,588 18,494 1,746 523 Total $ 187,856 $ 727,160 $ 117,873 $ 271,974 Real Estate: Mortgage, commercial Loans to individuals Obligations of state and political subdivisions Total December 31, 2015 Grade: Excellent $ 12,484 $ — $ 2,365 $ 29,829 Good 81,305 70 37,045 300,564 Satisfactory 187,728 23,197 12,425 1,455,498 Monitor 32,141 285 518 215,156 Special Mention 6,183 198 — 86,489 Substandard 3,568 269 18 37,380 Total $ 323,409 $ 24,019 $ 52,371 $ 2,124,916 The below are descriptions of the credit quality indicators: Excellent – Excellent rated loans are prime quality loans covered by highly liquid collateral with generous margins or supported by superior current financial conditions reflecting substantial net worth, relative to total credit extended, and based on assets of a stable and non-speculative nature whose values can be readily verified. Identified repayment source or cash flow is abundant and assured. Good – Good rated loans are adequately secured by readily marketable collateral or good financial condition characterized by liquidity, flexibility and sound net worth. Loans are supported by sound primary and secondary payment sources and timely and accurate financial information. Satisfactory – Satisfactory rated loans are loans to borrowers of average financial means not especially vulnerable to changes in economic or other circumstances, where the major support for the extension is sufficient collateral of a marketable nature, and the primary source of repayment is seen to be clear and adequate. Monitor – Monitor rated loans are identified by management as warranting special attention for a variety of reasons that may bear on ultimate collectability. This may be due to adverse trends, a particular industry, loan structure, or repayment that is dependent on projections, or a one-time occurrence. Special Mention – Special mention rated loans are supported by a marginal payment capacity and are marginally protected by collateral. There are identified weaknesses that if not monitored and corrected may adversely affect the Company’s credit position. A special mention credit would typically have a weakness in one of the general categories (cash flow, collateral position or payment history) but not in all categories. Substandard – Substandard loans are not adequately supported by the paying capacity of the borrower and may be inadequately collateralized. These loans have a well-defined weakness or weaknesses. For these loans, it is more probable than not that the Company could sustain some loss if the deficiency(ies) is not corrected. Past due loans as of June 30, 2016 and December 31, 2015 were as follows: 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Receivable Accruing Loans Past Due 90 Days or More (Amounts In Thousands) June 30, 2016 Agricultural $ 2,041 $ 94 $ 1,446 $ 3,581 $ 85,548 $ 89,129 $ 359 Commercial and financial 755 810 1,154 2,719 167,627 170,346 — Real estate: Construction, 1 to 4 family residential 347 405 173 925 56,795 57,720 — Construction, land development and commercial 45 199 85 329 117,409 117,738 — Mortgage, farmland 338 195 200 733 190,461 191,194 200 Mortgage, 1 to 4 family first liens 228 2,007 1,703 3,938 739,512 743,450 175 Mortgage, 1 to 4 family junior liens 39 8 137 184 119,104 119,288 — Mortgage, multi-family 132 — 40 172 285,416 285,588 — Mortgage, commercial 253 335 173 761 319,064 319,825 — Loans to individuals 79 62 — 141 24,344 24,485 — Obligations of state and political subdivisions — — — — 51,199 51,199 — $ 4,257 $ 4,115 $ 5,111 $ 13,483 $ 2,156,479 $ 2,169,962 $ 734 December 31, 2015 Agricultural $ 3,064 $ 961 $ — $ 4,025 $ 97,563 $ 101,588 $ — Commercial and financial 854 71 1,312 2,237 181,962 184,199 — Real estate: Construction, 1 to 4 family residential — — 214 214 51,132 51,346 — Construction, land development and commercial — — 88 88 $ 83,033 83,121 — Mortgage, farmland 320 88 — 408 187,448 187,856 — Mortgage, 1 to 4 family first liens 4,526 1,192 2,085 7,803 $ 719,357 727,160 406 Mortgage, 1 to 4 family junior liens 250 13 110 373 117,500 117,873 — Mortgage, multi-family 135 — 113 248 $ 271,726 271,974 — Mortgage, commercial 1,033 — 331 1,364 322,045 323,409 61 Loans to individuals 158 40 — 198 $ 23,821 24,019 — Obligations of state and political subdivisions — — — — 52,371 52,371 — $ 10,340 $ 2,365 $ 4,253 $ 16,958 $ 2,107,958 $ 2,124,916 $ 467 The Company does not have a material amount of loans that are past due less than 90 days where there are serious doubts as to the ability of the borrowers to comply with the loan repayment terms. Certain impaired loan information by loan type at June 30, 2016 and December 31, 2015 , was as follows: June 30, 2016 December 31, 2015 Non-accrual loans (1) Accruing loans past due 90 days or more TDR loans Non- accrual loans (1) Accruing loans past due 90 days or more TDR loans (Amounts In Thousands) (Amounts In Thousands) Agricultural $ 1,670 $ 359 $ 96 $ — $ — $ 1,710 Commercial and financial 1,516 — 787 1,498 — 612 Real estate: Construction, 1 to 4 family residential 173 — 266 214 — 473 Construction, land development and commercial 140 — 120 145 — 122 Mortgage, farmland 1,272 200 1,626 — — 2,233 Mortgage, 1 to 4 family first liens 3,914 175 1,342 3,845 406 1,369 Mortgage, 1 to 4 family junior liens 188 — 26 279 — 27 Mortgage, multi-family 358 — — 449 — — Mortgage, commercial 1,089 — 2,596 985 61 1,733 $ 10,320 $ 734 $ 6,859 $ 7,415 $ 467 $ 8,279 (1) There were $5.02 million and $2.31 million of TDR loans included within nonaccrual loans as of June 30, 2016 and December 31, 2015 , respectively. Loans 90 days or more past due that are still accruing interest increased $0.27 million from December 31, 2015 to June 30, 2016 due to an increase in the balances of loans past due greater than 90 days. As of June 30, 2016 there were 6 accruing loans past due 90 days or more. The average accruing loans past due as of June 30, 2016 are $0.12 million . The average accruing loans past due 90 days or more as of December 31, 2015 was $0.09 million . The accruing loans past due 90 days or more balances are believed to be adequately collateralized and the Company expects to collect all principal and interest as contractually due under these loans. The Company may modify the terms of a loan to maximize the collection of amounts due. Such a modification is considered a troubled debt restructuring (“TDR”). In most cases, the modification is either a reduction in interest rate, conversion to interest only payments or an extension of the maturity date. The borrower is experiencing financial difficulties or is expected to experience difficulties in the near-term, so a concessionary modification is granted to the borrower that would otherwise not be considered. TDR loans accrue interest as long as the borrower complies with the revised terms and conditions and has demonstrated repayment performance at a level commensurate with the modified terms over several payment cycles. Below is a summary of information for TDR loans as of June 30, 2016 and December 31, 2015 : June 30, 2016 December 31, 2015 Number of contracts Recorded investment Commitments outstanding Number of contracts Recorded investment Commitments outstanding (Amounts In Thousands) (Amounts In Thousands) Agricultural 4 $ 1,523 $ 65 7 $ 1,710 $ 32 Commercial and financial 12 1,946 252 8 1,818 241 Real estate: Construction, 1 to 4 family residential 2 438 — 3 646 138 Construction, land development and commercial 1 120 — 1 122 — Mortgage, farmland 7 2,897 — 5 2,233 — Mortgage, 1 to 4 family first liens 13 1,539 — 13 1,575 — Mortgage, 1 to 4 family junior liens 2 30 — 2 36 — Mortgage, multi-family — — — 1 71 — Mortgage, commercial 14 3,385 — 10 2,381 — Loans to individuals — — — — — — 55 $ 11,878 $ 317 50 $ 10,592 $ 411 The following is a summary of TDR loans that were modified during the three and six months ended June 30, 2016 : Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Number of contracts Pre-modification recorded investment Post-modification recorded investment Number of contracts Pre-modification recorded investment Post-modification recorded investment (Amounts In Thousands) (Amounts In Thousands) Agricultural 1 $ 562 $ 562 1 $ 562 $ 562 Commercial and financial — — — 4 349 349 Real estate: Construction, 1 to 4 family residential — — — 2 543 543 Construction, land development and commercial — — — — — — Mortgage, farmland — — — 1 132 132 Mortgage, 1 to 4 family first lien — — — — — — Mortgage, 1 to 4 family junior liens — — — — — — Mortgage, multi-family 1 539 539 1 539 539 Mortgage, commercial — — — 3 629 629 2 $ 1,101 $ 1,101 12 $ 2,754 $ 2,754 The Company had commitments to lend $0.32 million in additional borrowings to restructured loan customers as of June 30, 2016 . The Company had commitments to lend $0.41 million in additional borrowings to restructured loan customers as of December 31, 2015 . These commitments were in the normal course of business. The additional borrowings were not used to facilitate payments on these loans. There were $0.20 million and $0.00 million of TDR loans that were in payment default (defined as past due 90 days or more) during the quarter ended June 30, 2016 and year ended December 31, 2015 . Information regarding impaired loans as of and for the three and six months ended June 30, 2016 is as follows: June 30, 2016 Three Months Ended Six Months Ended Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: (Amounts In Thousands) Agricultural $ 50 $ 195 $ — $ 91 $ 1 $ 97 $ 1 Commercial and financial 1,693 2,325 — 1,722 6 1,743 12 Real estate: Construction, 1 to 4 family residential 265 265 — 265 3 265 6 Construction, land development and commercial 205 292 — 205 1 208 3 Mortgage, farmland 1,089 1,206 — 1,090 13 1,095 26 Mortgage, 1 to 4 family first liens 4,029 4,983 — 4,075 13 4,136 27 Mortgage, 1 to 4 family junior liens 141 444 — 146 — 153 — Mortgage, multi-family 146 258 — 149 — 187 — Mortgage, commercial 2,823 4,176 — 2,853 25 2,893 50 Loans to individuals — 20 — — — — — $ 10,441 $ 14,164 $ — $ 10,596 $ 62 $ 10,777 $ 125 With an allowance recorded: Agricultural $ 12,527 $ 12,564 $ 837 $ 12,560 $ 140 $ 12,598 $ 282 Commercial and financial 610 623 217 643 5 696 11 Real estate: Construction, 1 to 4 family residential 173 184 2 173 — 173 — Construction, land development and commercial 55 57 11 55 — 56 — Mortgage, farmland 7,425 7,430 638 7,498 82 7,505 164 Mortgage, 1 to 4 family first liens 1,402 1,537 232 1,423 5 1,434 9 Mortgage, 1 to 4 family junior liens 74 232 14 76 — 78 1 Mortgage, multi-family 212 220 41 214 — 216 — Mortgage, commercial 862 896 34 868 9 875 17 Loans to individuals 70 70 70 69 2 83 4 $ 23,410 $ 23,813 $ 2,096 $ 23,579 $ 243 $ 23,714 $ 488 Total: Agricultural $ 12,577 $ 12,759 $ 837 $ 12,651 $ 141 $ 12,695 $ 283 Commercial and financial 2,303 2,948 217 2,365 11 2,439 23 Real estate: Construction, 1 to 4 family residential 438 449 2 438 3 438 6 Construction, land development and commercial 260 349 11 260 1 264 3 Mortgage, farmland 8,514 8,636 638 8,588 95 8,600 190 Mortgage, 1 to 4 family first liens 5,431 6,520 232 5,498 18 5,570 36 Mortgage, 1 to 4 family junior liens 215 676 14 222 — 231 1 Mortgage, multi-family 358 478 41 363 — 403 — Mortgage, commercial 3,685 5,072 34 3,721 34 3,768 67 Loans to individuals 70 90 70 69 2 83 4 $ 33,851 $ 37,977 $ 2,096 $ 34,175 $ 305 $ 34,491 $ 613 Information regarding impaired loans as of December 31, 2015 is as follows: Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: (Amounts In Thousands) Agricultural $ 1,609 $ 1,773 $ — Commercial and financial 1,263 1,981 — Real estate: Construction, 1 to 4 family residential 238 238 — Construction, land development and commercial 210 314 — Mortgage, farmland 2,233 2,351 — Mortgage, 1 to 4 family first liens 3,558 4,419 — Mortgage, 1 to 4 family junior liens 189 500 — Mortgage, multi-family 157 226 — Mortgage, commercial 1,831 3,018 — Loans to individuals — 20 — $ 11,288 $ 14,840 $ — With an allowance recorded: Agricultural $ 101 $ 101 $ 1 Commercial and financial 847 847 324 Real estate: Construction, 1 to 4 family residential 449 461 9 Construction, land development and commercial 57 58 13 Mortgage, farmland — — — Mortgage, 1 to 4 family first liens 2,062 2,156 306 Mortgage, 1 to 4 family junior liens 117 270 20 Mortgage, multi-family 292 332 58 Mortgage, commercial 948 1,030 52 Loans to individuals 100 100 100 $ 4,973 $ 5,355 $ 883 Total: Agricultural $ 1,710 $ 1,874 $ 1 Commercial and financial 2,110 2,828 324 Real estate: Construction, 1 to 4 family residential 687 699 9 Construction, land development and commercial 267 372 13 Mortgage, farmland 2,233 2,351 — Mortgage, 1 to 4 family first liens 5,620 6,575 306 Mortgage, 1 to 4 family junior liens 306 770 20 Mortgage, multi-family 449 558 58 Mortgage, commercial 2,779 4,048 52 Loans to individuals 100 120 100 $ 16,261 $ 20,195 $ 883 Impaired loans increased $17.59 million from December 31, 2015 to June 30, 2016 . Impaired loans include any loan that has been placed on nonaccrual status, accruing loans past due 90 days or more and TDR loans. Impaired loans also include loans that, based on management’s evaluation of current information and events, the Company expects to be unable to collect in full according to the contractual terms of the original loan agreement. Impaired loans were 1.56% of loans held for investment as of June 30, 2016 and 0.76% as of December 31, 2015 . The increase in impaired loans is due mainly to an increase in nonaccrual loans of $2.91 million , a $16.39 million agricultural and farmland real estate relationship with a specific allowance for losses, and a decrease in TDR loans of $1.42 million from December 31, 2015 to June 30, 2016 . The Company regularly reviews a substantial portion of the loans in the portfolio and assesses whether the loans are impaired in accordance with ASC 310. If the loans are impaired, the Company determines if a specific allowance is appropriate. In addition, the Company's management also reviews and, where determined necessary, provides allowances for particular loans based upon (1) reviews of specific borrowers and (2) management’s assessment of areas that management considers are of higher credit risk, including loans that have been restructured. Loans that are determined not to be impaired and for which there are no specific allowances are classified into one or more risk categories. Based upon the risk category assigned, the Company allocates a percentage, as determined by management, for a required allowance needed. The determination of the appropriate percentage begins with historical loss experience factors, which are then adjusted for levels and trends in past due loans, levels and trends in charged-off and recovered loans, trends in volume growth, trends in problem and watch loans, trends in restructured loans, local economic trends and conditions, industry and other conditions, and effects of changing interest rates. Specific allowances for losses on impaired loans are established if the loan balances exceed the net present value of the relevant future cash flows or the fair value of the relevant collateral based on updated appraisals and/or updated collateral analysis for the properties if the loan is collateral dependent. The Company may recognize a charge off or record a specific allowance related to an impaired loan if there is a collateral shortfall or it is unlikely the borrower can make all principal and interest payments as contractually due. For loans that are collateral dependent, losses are evaluated based on the portion of a loan that exceeds the fair market value of the collateral. In general, this is the amount that the carrying value of the loan exceeds the related appraised value less estimated costs to sell the collateral. Generally, it is the Company’s policy not to rely on appraisals that are older than one year prior to the date the impairment is being measured. The most recent appraisal values may be adjusted if, in the Company’s judgment, experience and other market data indicate that the property’s value, use, condition, exit market or other variable affecting its value may have changed since the appraisal was performed, consistent with the December 2006 joint interagency guidance on the allowance for loan losses. The charge off or loss adjustment supported by an appraisal is considered the minimum charge off. Any adjustments made to the appraised value are to provide an additional charge off or specific reserve based on the applicable facts and circumstances. In instances where there is an estimated decline in value, a specific reserve may be provided or a charge off taken pending confirmation of the amount of the loss from an updated appraisal. Upon receipt of the new appraisals, an additional specific reserve may be provided or charge off taken based on the appraised value of the collateral. On average, appraisals are obtained within one month of order. |