Loans | Loans Classes of loans are as follows: June 30, December 31, (Amounts In Thousands) Agricultural $ 80,434 $ 92,871 Commercial and financial 203,150 192,995 Real estate: Construction, 1 to 4 family residential 69,215 57,864 Construction, land development and commercial 127,710 121,561 Mortgage, farmland 207,412 202,340 Mortgage, 1 to 4 family first liens 801,315 767,469 Mortgage, 1 to 4 family junior liens 132,126 125,400 Mortgage, multi-family 316,459 302,831 Mortgage, commercial 351,775 334,198 Loans to individuals 25,177 25,157 Obligations of state and political subdivisions 55,926 54,462 $ 2,370,699 $ 2,277,148 Net unamortized fees and costs 862 827 $ 2,371,561 $ 2,277,975 Less allowance for loan losses 28,950 26,530 $ 2,342,611 $ 2,251,445 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, 2017 were as follows: Three Months Ended June 30, 2017 Agricultural Commercial and Real Estate: Real Estate: Real Estate: Real Estate: Other Total (Amounts In Thousands) Allowance for loan losses: Beginning balance $ 2,505 $ 3,899 $ 3,094 $ 3,507 $ 8,172 $ 4,358 $ 915 $ 26,450 Charge-offs (39 ) (237 ) (114 ) — (63 ) (43 ) (110 ) (606 ) Recoveries 29 210 29 — 234 49 44 595 Provision (154 ) 714 156 502 (3 ) 1,050 246 2,511 Ending balance $ 2,341 $ 4,586 $ 3,165 $ 4,009 $ 8,340 $ 5,414 $ 1,095 $ 28,950 Six Months Ended June 30, 2017 Agricultural Commercial and Real Estate: Real Estate: Real Estate: Real Estate: Other Total (Amounts In Thousands) Allowance for loan losses: Beginning balance $ 2,947 $ 4,531 $ 2,890 $ 3,417 $ 7,677 $ 4,045 $ 1,023 $ 26,530 Charge-offs (39 ) (457 ) (114 ) — (208 ) (43 ) (298 ) (1,159 ) Recoveries 67 664 410 — 367 229 145 1,882 Provision (634 ) (152 ) (21 ) 592 504 1,183 225 1,697 Ending balance $ 2,341 $ 4,586 $ 3,165 $ 4,009 $ 8,340 $ 5,414 $ 1,095 $ 28,950 Ending balance, individually evaluated for impairment $ 447 $ 908 $ 33 $ 814 $ 56 $ 889 $ 95 $ 3,242 Ending balance, collectively evaluated for impairment $ 1,894 $ 3,678 $ 3,132 $ 3,195 $ 8,284 $ 4,525 $ 1,000 $ 25,708 Loans: Ending balance $ 80,434 $ 203,150 $ 196,925 $ 207,412 $ 933,441 $ 668,234 $ 81,103 $ 2,370,699 Ending balance, individually evaluated for impairment $ 5,052 $ 2,405 $ 690 $ 8,111 $ 5,540 $ 8,313 $ 95 $ 30,206 Ending balance, collectively evaluated for impairment $ 75,382 $ 200,745 $ 196,235 $ 199,301 $ 927,901 $ 659,921 $ 81,008 $ 2,340,493 Changes in the allowance for loan losses for the three and six months ended June 30, 2016 were as follows: Three Months Ended June 30, 2016 Agricultural Commercial and Real Estate: Real Estate: Real Estate: Real Estate: 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 Real Estate: Real Estate: Real Estate: Real Estate: 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 The following table presents the credit quality indicators by type of loans in each category as of June 30, 2017 and December 31, 2016 , 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, 2017 Grade: Excellent $ 3,881 $ 10,293 $ 400 $ 2,200 Good 14,871 41,860 5,925 23,049 Satisfactory 34,465 114,842 50,030 50,634 Monitor 16,518 25,417 10,511 50,359 Special Mention 4,806 4,675 1,577 799 Substandard 5,893 6,063 772 669 Total $ 80,434 $ 203,150 $ 69,215 $ 127,710 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, 2017 Grade: Excellent $ 3,855 $ 1,603 $ 494 $ 5,800 Good 54,101 18,945 2,981 77,461 Satisfactory 105,959 674,697 120,045 187,113 Monitor 32,390 71,791 4,663 38,286 Special Mention 2,496 11,471 1,432 1,241 Substandard 8,611 22,808 2,511 6,558 Total $ 207,412 $ 801,315 $ 132,126 $ 316,459 Real Estate: Mortgage, commercial Loans to individuals Obligations of state and political subdivisions Total June 30, 2017 Grade: Excellent $ 17,403 $ — $ 2,618 $ 48,547 Good 96,525 101 34,195 370,014 Satisfactory 187,043 24,286 15,499 1,564,613 Monitor 40,315 321 3,614 294,185 Special Mention 6,679 274 — 35,450 Substandard 3,810 195 — 57,890 Total $ 351,775 $ 25,177 $ 55,926 $ 2,370,699 Agricultural Commercial and Financial Real Estate: Construction, 1 to 4 family residential Real Estate: Construction, land development and commercial December 31, 2016 Grade: Excellent $ 4,205 $ 4,241 $ — $ 244 Good 13,611 43,472 1,701 25,337 Satisfactory 40,008 108,800 44,138 46,758 Monitor 12,699 20,023 8,896 44,487 Special Mention 8,381 11,177 972 4,250 Substandard 13,967 5,282 2,157 485 Total $ 92,871 $ 192,995 $ 57,864 $ 121,561 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, 2016 Grade: Excellent $ 2,916 $ 1,196 $ 65 $ 5,970 Good 47,569 15,725 3,002 71,822 Satisfactory 105,971 647,191 113,433 180,651 Monitor 29,778 66,164 4,877 40,444 Special Mention 7,004 12,914 1,566 3,636 Substandard 9,102 24,279 2,457 308 Total $ 202,340 $ 767,469 $ 125,400 $ 302,831 Real Estate: Mortgage, commercial Loans to individuals Obligations of state and political subdivisions Total December 31, 2016 Grade: Excellent $ 15,873 $ — $ — $ 34,710 Good 89,801 65 37,539 349,644 Satisfactory 185,650 24,446 16,417 1,513,463 Monitor 34,979 293 506 263,146 Special Mention 3,797 195 — 53,892 Substandard 4,098 158 — 62,293 Total $ 334,198 $ 25,157 $ 54,462 $ 2,277,148 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, 2017 and December 31, 2016 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, 2017 Agricultural $ 407 $ — $ 76 $ 483 $ 79,951 $ 80,434 $ — Commercial and financial 1,698 391 113 2,202 200,948 203,150 — Real estate: Construction, 1 to 4 family residential — — 172 172 69,043 69,215 172 Construction, land development and commercial 2,938 55 — 2,993 124,717 127,710 — Mortgage, farmland 21 918 — 939 206,473 207,412 — Mortgage, 1 to 4 family first liens 398 1,207 2,037 3,642 797,673 801,315 247 Mortgage, 1 to 4 family junior liens 26 32 91 149 131,977 132,126 — Mortgage, multi-family 4,336 — — 4,336 312,123 316,459 — Mortgage, commercial 1,419 — 16 1,435 350,340 351,775 — Loans to individuals 47 5 — 52 25,125 25,177 — Obligations of state and political subdivisions — — — — 55,926 55,926 — $ 11,290 $ 2,608 $ 2,505 $ 16,403 $ 2,354,296 $ 2,370,699 $ 419 December 31, 2016 Agricultural $ 56 $ — $ 302 $ 358 $ 92,513 $ 92,871 $ — Commercial and financial 24 121 718 863 192,132 192,995 — Real estate: Construction, 1 to 4 family residential — — — — 57,864 57,864 — Construction, land development and commercial — 231 85 316 $ 121,245 121,561 — Mortgage, farmland 319 — — 319 202,021 202,340 — Mortgage, 1 to 4 family first liens 5,649 978 1,943 8,570 $ 758,899 767,469 192 Mortgage, 1 to 4 family junior liens 330 51 579 960 124,440 125,400 443 Mortgage, multi-family — — 40 40 $ 302,791 302,831 — Mortgage, commercial 371 — 207 578 333,620 334,198 — Loans to individuals 203 32 — 235 $ 24,922 25,157 — Obligations of state and political subdivisions — — — — 54,462 54,462 — $ 6,952 $ 1,413 $ 3,874 $ 12,239 $ 2,264,909 $ 2,277,148 $ 635 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, 2017 and December 31, 2016 , was as follows: June 30, 2017 December 31, 2016 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 $ 1,494 $ — $ 2,548 $ 1,741 $ — $ 91 Commercial and financial 1,104 — 401 1,354 — 1,057 Real estate: Construction, 1 to 4 family residential — 172 — — — 265 Construction, land development and commercial 59 — 343 85 — 118 Mortgage, farmland 1,371 — 1,473 1,205 — 1,389 Mortgage, 1 to 4 family first liens 3,973 247 1,308 4,097 192 1,375 Mortgage, 1 to 4 family junior liens 102 — 26 136 443 26 Mortgage, multi-family 230 — 169 243 — — Mortgage, commercial 749 — 896 1,077 — 1,087 $ 9,082 $ 419 $ 7,164 $ 9,938 $ 635 $ 5,408 (1) There were $4.07 million and $4.23 million of TDR loans included within nonaccrual loans as of June 30, 2017 and December 31, 2016 , respectively. Loans 90 days or more past due that are still accruing interest decreased $0.22 million from December 31, 2016 to June 30, 2017 due to a decrease in the number of loans past due greater than 90 days. As of June 30, 2017 there were 4 accruing loans past due 90 days or more. The average accruing loans past due as of June 30, 2017 are $0.10 million . There were 6 accruing loans past due 90 days or more as of December 31, 2016 and the average loan balance was $0.11 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, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 Number of contracts Recorded investment Commitments outstanding Number of contracts Recorded investment Commitments outstanding (Amounts In Thousands) (Amounts In Thousands) Agricultural 9 $ 3,912 $ 86 4 $ 1,460 $ 167 Commercial and financial 12 1,183 298 14 2,053 117 Real estate: Construction, 1 to 4 family residential — — 215 3 265 1,225 Construction, land development and commercial 3 402 849 1 118 107 Mortgage, farmland 7 2,844 — 7 2,594 — Mortgage, 1 to 4 family first liens 12 1,398 — 12 1,471 — Mortgage, 1 to 4 family junior liens 1 26 36 1 26 65 Mortgage, multi-family — — — — — — Mortgage, commercial 8 1,471 — 10 1,650 — Loans to individuals — — — — — — 52 $ 11,236 $ 1,484 52 $ 9,637 $ 1,681 The following is a summary of TDR loans that were modified during the three and six months ended June 30, 2017 : Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Number of contracts Pre-modification recorded investment Post-modification recorded investment Number Pre-modification Post-modification (Amounts In Thousands) (Amounts In Thousands) Agricultural 3 $ 2,107 $ 2,107 6 $ 10,890 $ 10,890 Commercial and financial 1 95 95 1 95 95 Real estate: Construction, 1 to 4 family residential — — — — — — Construction, land development and commercial 1 60 60 2 291 291 Mortgage, farmland — — — 2 598 598 Mortgage, 1 to 4 family first lien — — — — — — Mortgage, 1 to 4 family junior liens — — — — — — Mortgage, multi-family 1 249 249 1 249 249 Mortgage, commercial — — — — — — 6 $ 2,511 $ 2,511 12 $ 12,123 $ 12,123 The Company had commitments to lend $1.48 million in additional borrowings to restructured loan customers as of June 30, 2017 . The Company had commitments to lend $1.68 million in additional borrowings to restructured loan customers as of December 31, 2016 . These commitments were in the normal course of business. The additional borrowings were not used to facilitate payments on these loans. There were no TDR loans that were in payment default (defined as past due 90 days or more) during the period ended June 30, 2017 and year ended December 31, 2016 . Information regarding impaired loans as of and for the three and six months ended June 30, 2017 is as follows: June 30, 2017 Three Months Ended Six Months Ended Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Interest Income Average Recorded Interest Income With no related allowance recorded: (Amounts In Thousands) Agricultural $ 1,902 $ 2,201 $ — $ 1,981 $ 6 $ 1,981 $ 12 Commercial and financial 1,218 1,910 — 1,396 4 1,420 8 Real estate: Construction, 1 to 4 family residential 116 151 — 117 1 117 3 Construction, land development and commercial 175 209 — 176 1 177 3 Mortgage, farmland 2,525 2,853 — 2,550 14 2,433 28 Mortgage, 1 to 4 family first liens 4,628 5,882 — 4,674 12 4,718 21 Mortgage, 1 to 4 family junior liens 97 590 — 98 — 100 — Mortgage, multi-family 230 359 — 234 — 236 — Mortgage, commercial 1,733 2,324 — 1,767 11 1,791 23 Loans to individuals — 16 — — — — — $ 12,624 $ 16,495 $ — $ 12,993 $ 49 $ 12,973 $ 98 With an allowance recorded: Agricultural $ 3,150 $ 3,150 $ 447 $ 3,419 $ 40 $ 3,526 $ 82 Commercial and financial 1,187 1,252 908 1,198 13 1,154 25 Real estate: Construction, 1 to 4 family residential 172 172 3 172 1 169 3 Construction, land development and commercial 227 227 30 228 2 229 4 Mortgage, farmland 5,586 5,586 814 5,667 61 5,670 122 Mortgage, 1 to 4 family first liens 785 892 53 789 6 792 11 Mortgage, 1 to 4 family junior liens 30 47 3 31 — 39 1 Mortgage, multi-family 6,269 6,269 887 6,288 71 6,292 140 Mortgage, commercial 81 81 2 81 1 82 2 Loans to individuals 95 95 95 87 2 93 5 $ 17,582 $ 17,771 $ 3,242 $ 17,960 $ 197 $ 18,046 $ 395 Total: Agricultural $ 5,052 $ 5,351 $ 447 $ 5,400 $ 46 $ 5,507 $ 94 Commercial and financial 2,405 3,162 908 2,594 17 2,574 33 Real estate: Construction, 1 to 4 family residential 288 323 3 289 2 286 6 Construction, land development and commercial 402 436 30 404 3 406 7 Mortgage, farmland 8,111 8,439 814 8,217 75 8,103 150 Mortgage, 1 to 4 family first liens 5,413 6,774 53 5,463 18 5,510 32 Mortgage, 1 to 4 family junior liens 127 637 3 129 — 139 1 Mortgage, multi-family 6,499 6,628 887 6,522 71 6,528 140 Mortgage, commercial 1,814 2,405 2 1,848 12 1,873 25 Loans to individuals 95 111 95 87 2 93 5 $ 30,206 $ 34,266 $ 3,242 $ 30,953 $ 246 $ 31,019 $ 493 Information regarding impaired loans as of December 31, 2016 is as follows: Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: (Amounts In Thousands) Agricultural $ 800 $ 971 $ — Commercial and financial 1,540 2,175 — Real estate: Construction, 1 to 4 family residential 117 151 — Construction, land development and commercial 204 290 — Mortgage, farmland 2,594 2,887 — Mortgage, 1 to 4 family first liens 5,011 6,137 — Mortgage, 1 to 4 family junior liens 153 646 — Mortgage, multi-family 243 362 — Mortgage, commercial 1,901 2,727 — Loans to individuals — 19 — $ 12,563 $ 16,365 $ — With an allowance recorded: Agricultural $ 10,920 $ 10,978 $ 856 Commercial and financial 937 955 718 Real estate: Construction, 1 to 4 family residential 815 815 105 Construction, land development and commercial — — — Mortgage, farmland 5,434 5,434 390 Mortgage, 1 to 4 family first liens 1,266 1,374 79 Mortgage, 1 to 4 family junior liens 612 667 11 Mortgage, multi-family — — — Mortgage, commercial 967 1,004 34 Loans to individuals 150 150 150 $ 21,101 $ 21,377 $ 2,343 Total: Agricultural $ 11,720 $ 11,949 $ 856 Commercial and financial 2,477 3,130 718 Real estate: Construction, 1 to 4 family residential 932 966 105 Construction, land development and commercial 204 290 — Mortgage, farmland 8,028 8,321 390 Mortgage, 1 to 4 family first liens 6,277 7,511 79 Mortgage, 1 to 4 family junior liens 765 1,313 11 Mortgage, multi-family 243 362 — Mortgage, commercial 2,868 3,731 34 Loans to individuals 150 169 150 $ 33,664 $ 37,742 $ 2,343 Impaired loans decreased $3.46 million from December 31, 2016 to June 30, 2017 . 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 1.27% of loans held for investment as of June 30, 2017 and 1.48% as of December 31, 2016 . The decrease in impaired loans is due mainly to a decrease in nonaccrual loans of $0.86 million , a decrease of $4.24 million in relationships with a specific allowance for losses, and is offset by an increase in TDR loans of $1.76 million from December 31, 2016 to June 30, 2017 . 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. |