Loans | Loans Classes of loans are as follows: September 30, December 31, (Amounts In Thousands) Agricultural $ 76,484 $ 92,871 Commercial and financial 214,199 192,995 Real estate: Construction, 1 to 4 family residential 73,404 57,864 Construction, land development and commercial 107,170 121,561 Mortgage, farmland 208,982 202,340 Mortgage, 1 to 4 family first liens 823,529 767,469 Mortgage, 1 to 4 family junior liens 137,271 125,400 Mortgage, multi-family 335,439 302,831 Mortgage, commercial 359,332 334,198 Loans to individuals 26,223 25,157 Obligations of state and political subdivisions 57,861 54,462 $ 2,419,894 $ 2,277,148 Net unamortized fees and costs 886 827 $ 2,420,780 $ 2,277,975 Less allowance for loan losses 29,350 26,530 $ 2,391,430 $ 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 nine months ended September 30, 2017 were as follows: Three Months Ended September 30, 2017 Agricultural Commercial and Real Estate: Real Estate: Real Estate: Real Estate: Other Total (Amounts In Thousands) Allowance for loan losses: Beginning balance $ 2,341 $ 4,586 $ 3,165 $ 4,009 $ 8,340 $ 5,414 $ 1,095 $ 28,950 Charge-offs (27 ) (21 ) — (3 ) (55 ) (86 ) (113 ) (305 ) Recoveries 56 219 33 — 203 7 57 575 Provision 92 (43 ) (182 ) 2 98 107 56 130 Ending balance $ 2,462 $ 4,741 $ 3,016 $ 4,008 $ 8,586 $ 5,442 $ 1,095 $ 29,350 Nine Months Ended September 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 (66 ) (478 ) (114 ) (3 ) (263 ) (130 ) (410 ) (1,464 ) Recoveries 123 882 443 — 570 236 203 2,457 Provision (542 ) (194 ) (203 ) 594 602 1,291 279 1,827 Ending balance $ 2,462 $ 4,741 $ 3,016 $ 4,008 $ 8,586 $ 5,442 $ 1,095 $ 29,350 Ending balance, individually evaluated for impairment $ 653 $ 913 $ 46 $ 784 $ 110 $ 409 $ 85 $ 3,000 Ending balance, collectively evaluated for impairment $ 1,809 $ 3,828 $ 2,970 $ 3,224 $ 8,476 $ 5,033 $ 1,010 $ 26,350 Loans: Ending balance $ 76,484 $ 214,199 $ 180,574 $ 208,982 $ 960,800 $ 694,771 $ 84,084 $ 2,419,894 Ending balance, individually evaluated for impairment $ 6,181 $ 2,985 $ 1,161 $ 8,179 $ 7,097 $ 8,097 $ 85 $ 33,785 Ending balance, collectively evaluated for impairment $ 70,303 $ 211,214 $ 179,413 $ 200,803 $ 953,703 $ 686,674 $ 83,999 $ 2,386,109 Changes in the allowance for loan losses for the three and nine months ended September 30, 2016 were as follows: Three Months Ended September 30, 2016 Agricultural Commercial and Real Estate: Real Estate: Real Estate: Real Estate: Other Total (Amounts In Thousands) Allowance for loan losses: Beginning balance $ 2,997 $ 4,011 $ 2,898 $ 3,927 $ 8,226 $ 4,201 $ 1,030 $ 27,290 Charge-offs (19 ) (38 ) — (105 ) (176 ) — (140 ) (478 ) Recoveries — 289 186 — 276 358 51 1,160 Provision 201 (252 ) (75 ) (204 ) (425 ) (589 ) (86 ) (1,832 ) Ending balance $ 2,777 $ 4,010 $ 3,009 $ 3,618 $ 7,901 $ 3,970 $ 855 $ 26,140 Nine Months Ended September 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 (44 ) (172 ) — (116 ) (704 ) (66 ) (416 ) (1,518 ) Recoveries 173 910 792 — 767 379 132 3,153 Provision (434 ) (1,245 ) (63 ) 392 (334 ) (566 ) 246 (2,004 ) Ending balance $ 2,777 $ 4,010 $ 3,009 $ 3,618 $ 7,901 $ 3,970 $ 855 $ 26,140 Ending balance, individually evaluated for impairment $ 746 $ 221 $ 223 $ 549 $ 283 $ 62 $ 29 $ 2,113 Ending balance, collectively evaluated for impairment $ 2,031 $ 3,789 $ 2,786 $ 3,069 $ 7,618 $ 3,908 $ 826 $ 24,027 Loans: Ending balance $ 88,104 $ 188,365 $ 178,820 $ 193,819 $ 883,693 $ 619,214 $ 74,917 $ 2,226,932 Ending balance, individually evaluated for impairment $ 12,276 $ 2,529 $ 2,877 $ 8,371 $ 6,497 $ 3,356 $ 29 $ 35,935 Ending balance, collectively evaluated for impairment $ 75,828 $ 185,836 $ 175,943 $ 185,448 $ 877,196 $ 615,858 $ 74,888 $ 2,190,997 The following table presents the credit quality indicators by type of loans in each category as of September 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 September 30, 2017 Grade: Excellent $ 2,502 $ 10,234 $ 548 $ 2,950 Good 12,073 47,103 6,773 26,216 Satisfactory 37,109 117,612 49,639 41,317 Monitor 14,622 28,619 15,248 33,226 Special Mention 4,653 5,410 897 2,607 Substandard 5,525 5,221 299 854 Total $ 76,484 $ 214,199 $ 73,404 $ 107,170 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 September 30, 2017 Grade: Excellent $ 5,102 $ 2,064 $ 494 $ 5,712 Good 52,634 29,490 3,569 82,368 Satisfactory 105,155 681,699 124,625 188,549 Monitor 34,985 77,461 4,869 52,341 Special Mention 2,434 11,136 1,328 — Substandard 8,672 21,679 2,386 6,469 Total $ 208,982 $ 823,529 $ 137,271 $ 335,439 Real Estate: Mortgage, commercial Loans to individuals Obligations of state and political subdivisions Total September 30, 2017 Grade: Excellent $ 18,735 $ — $ 8,961 $ 57,302 Good 103,662 476 29,137 393,501 Satisfactory 183,140 24,962 16,186 1,569,993 Monitor 44,316 349 3,577 309,613 Special Mention 7,037 216 — 35,718 Substandard 2,442 220 — 53,767 Total $ 359,332 $ 26,223 $ 57,861 $ 2,419,894 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 September 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) September 30, 2017 Agricultural $ 3 $ 23 $ 1,367 $ 1,393 $ 75,091 $ 76,484 $ 1,121 Commercial and financial 380 262 264 906 213,293 214,199 200 Real estate: Construction, 1 to 4 family residential — 22 — 22 73,382 73,404 — Construction, land development and commercial 3,320 — — 3,320 103,850 107,170 — Mortgage, farmland — 1,355 83 1,438 207,544 208,982 — Mortgage, 1 to 4 family first liens 733 1,578 2,235 4,546 818,983 823,529 412 Mortgage, 1 to 4 family junior liens 201 137 62 400 136,871 137,271 58 Mortgage, multi-family — — — — 335,439 335,439 — Mortgage, commercial 142 — 16 158 359,174 359,332 — Loans to individuals 38 67 — 105 26,118 26,223 — Obligations of state and political subdivisions — — — — 57,861 57,861 — $ 4,817 $ 3,444 $ 4,027 $ 12,288 $ 2,407,606 $ 2,419,894 $ 1,791 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 September 30, 2017 and December 31, 2016 , was as follows: September 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 $ 1,656 $ 1,121 $ 2,446 $ 1,741 $ — $ 91 Commercial and financial 947 200 1,839 1,354 — 1,057 Real estate: Construction, 1 to 4 family residential — — — — — 265 Construction, land development and commercial — — 341 85 — 118 Mortgage, farmland 1,454 — 1,462 1,205 — 1,389 Mortgage, 1 to 4 family first liens 4,415 412 1,399 4,097 192 1,375 Mortgage, 1 to 4 family junior liens 12 58 26 136 443 26 Mortgage, multi-family 223 — — 243 — — Mortgage, commercial 630 — 1,057 1,077 — 1,087 $ 9,337 $ 1,791 $ 8,570 $ 9,938 $ 635 $ 5,408 (1) There were $3.76 million and $4.23 million of TDR loans included within nonaccrual loans as of September 30, 2017 and December 31, 2016 , respectively. Loans 90 days or more past due that are still accruing interest increased $1.16 million from December 31, 2016 to September 30, 2017 due to an increase in the number of loans past due greater than 90 days including a $1.12 agricultural relationship. As of September 30, 2017 there were 10 accruing loans past due 90 days or more. The average balance of accruing loans past due as of September 30, 2017 are $0.18 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 September 30, 2017 and December 31, 2016 : September 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 $ 3,762 $ 267 4 $ 1,460 $ 167 Commercial and financial 15 2,526 157 14 2,053 117 Real estate: Construction, 1 to 4 family residential — — 193 3 265 1,225 Construction, land development and commercial 2 341 721 1 118 107 Mortgage, farmland 7 2,834 — 7 2,594 — Mortgage, 1 to 4 family first liens 13 1,486 — 12 1,471 — Mortgage, 1 to 4 family junior liens 1 26 54 1 26 65 Mortgage, multi-family — — — — — — Mortgage, commercial 8 1,355 — 10 1,650 — Loans to individuals — — — — — — 55 $ 12,330 $ 1,392 52 $ 9,637 $ 1,681 The following is a summary of TDR loans that were modified during the three and nine months ended September 30, 2017 : Three Months Ended September 30, 2017 Nine Months Ended September 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 — $ — $ — 6 $ 10,890 $ 10,890 Commercial and financial 3 1,451 1,451 4 1,546 1,546 Real estate: Construction, 1 to 4 family residential — — — — — — Construction, land development and commercial — — — 1 231 231 Mortgage, farmland — — — 2 598 598 Mortgage, 1 to 4 family first lien 1 106 106 1 106 106 Mortgage, 1 to 4 family junior liens — — — — — — Mortgage, multi-family — — — 1 249 249 Mortgage, commercial — — — — — — 4 $ 1,557 $ 1,557 15 $ 13,620 $ 13,620 The Company had commitments to lend $1.39 million in additional borrowings to restructured loan customers as of September 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 September 30, 2017 and year ended December 31, 2016 . Information regarding impaired loans as of and for the three and nine months ended September 30, 2017 is as follows: September 30, 2017 Three Months Ended Nine 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 $ 1,739 $ 1,981 $ — $ 1,778 $ 3 $ 1,767 $ 1 Commercial and financial 1,333 2,047 — 1,598 17 1,375 5 Real estate: Construction, 1 to 4 family residential 116 151 — 116 4 116 1 Construction, land development and commercial 341 374 — 345 10 342 3 Mortgage, farmland 2,598 2,925 — 2,513 42 2,603 14 Mortgage, 1 to 4 family first liens 5,268 6,640 — 5,434 37 5,336 13 Mortgage, 1 to 4 family junior liens 12 485 — 25 — 13 — Mortgage, multi-family 223 357 — 233 — 226 — Mortgage, commercial 1,607 2,300 — 1,727 34 1,670 11 Loans to individuals — 14 — — — — — $ 13,237 $ 17,274 $ — $ 13,769 $ 147 $ 13,448 $ 48 With an allowance recorded: Agricultural $ 4,442 $ 4,503 $ 653 $ 4,897 $ 169 $ 4,491 $ 53 Commercial and financial 1,652 1,698 913 1,732 62 1,743 21 Real estate: Construction, 1 to 4 family residential 199 199 13 136 5 180 2 Construction, land development and commercial 505 505 33 321 11 354 4 Mortgage, farmland 5,581 5,581 784 5,667 183 5,584 61 Mortgage, 1 to 4 family first liens 1,734 1,861 106 1,761 54 1,743 17 Mortgage, 1 to 4 family junior liens 83 83 4 86 3 83 1 Mortgage, multi-family 6,187 6,187 407 6,251 210 6,228 71 Mortgage, commercial 80 80 2 81 3 80 1 Loans to individuals 85 85 85 88 7 90 3 $ 20,548 $ 20,782 $ 3,000 $ 21,020 $ 707 $ 20,576 $ 234 Total: Agricultural $ 6,181 $ 6,484 $ 653 $ 6,675 $ 172 $ 6,258 $ 54 Commercial and financial 2,985 3,745 913 3,330 79 3,118 26 Real estate: Construction, 1 to 4 family residential 315 350 13 252 9 296 3 Construction, land development and commercial 846 879 33 666 21 696 7 Mortgage, farmland 8,179 8,506 784 8,180 225 8,187 75 Mortgage, 1 to 4 family first liens 7,002 8,501 106 7,195 91 7,079 30 Mortgage, 1 to 4 family junior liens 95 568 4 111 3 96 1 Mortgage, multi-family 6,410 6,544 407 6,484 210 6,454 71 Mortgage, commercial 1,687 2,380 2 1,808 37 1,750 12 Loans to individuals 85 99 85 88 7 90 3 $ 33,785 $ 38,056 $ 3,000 $ 34,789 $ 854 $ 34,024 $ 282 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 increased $0.12 million from December 31, 2016 to September 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 1.40% of loans held for investment as of September 30, 2017 and 1.48% as of December 31, 2016 . The increase in impaired loans is due mainly to an increase in TDR loans of $3.16 million and an increase in accruing loans past due 90 days or more of $1.16 million from December 31, 2016 to September 30, 2017 , and is offset by a decrease in nonaccrual loans of $0.60 million , and a decrease of $3.60 million in relationships with a specific allowance for losses. 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. |