Loans | Loans Classes of loans are as follows: June 30, December 31, (Amounts In Thousands) Agricultural $ 91,215 $ 92,673 Commercial and financial 225,990 229,501 Real estate: Construction, 1 to 4 family residential 72,963 72,279 Construction, land development and commercial 99,777 113,807 Mortgage, farmland 238,779 236,454 Mortgage, 1 to 4 family first liens 916,502 912,059 Mortgage, 1 to 4 family junior liens 152,624 152,625 Mortgage, multi-family 350,745 352,434 Mortgage, commercial 406,124 383,314 Loans to individuals 30,981 30,072 Obligations of state and political subdivisions 52,917 52,725 $ 2,638,617 $ 2,627,943 Net unamortized fees and costs 948 952 $ 2,639,565 $ 2,628,895 Less allowance for loan losses 35,650 37,810 $ 2,603,915 $ 2,591,085 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, 2019 were as follows: Three Months Ended June 30, 2019 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 $ 2,541 $ 6,004 $ 2,928 $ 3,871 $ 11,630 $ 8,223 $ 1,323 $ 36,520 Charge-offs — (284 ) (1 ) — (202 ) (129 ) (126 ) (742 ) Recoveries 59 139 2 — 149 2 61 412 Provision (65 ) (256 ) (283 ) 20 (193 ) 98 139 (540 ) Ending balance $ 2,535 $ 5,603 $ 2,646 $ 3,891 $ 11,384 $ 8,194 $ 1,397 $ 35,650 Six Months Ended June 30, 2019 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 $ 2,789 $ 5,826 $ 3,292 $ 3,972 $ 12,516 $ 8,165 $ 1,250 $ 37,810 Charge-offs — (464 ) (9 ) — (379 ) (133 ) (234 ) (1,219 ) Recoveries 69 323 4 5 259 88 97 845 Provision (323 ) (82 ) (641 ) (86 ) (1,012 ) 74 284 (1,786 ) Ending balance $ 2,535 $ 5,603 $ 2,646 $ 3,891 $ 11,384 $ 8,194 $ 1,397 $ 35,650 Ending balance, individually evaluated for impairment $ 213 $ 1,059 $ — $ — $ 70 $ 1 $ 40 $ 1,383 Ending balance, collectively evaluated for impairment $ 2,322 $ 4,544 $ 2,646 $ 3,891 $ 11,314 $ 8,193 $ 1,357 $ 34,267 Loans: Ending balance $ 91,215 $ 225,990 $ 172,740 $ 238,779 $ 1,069,126 $ 756,869 $ 83,898 $ 2,638,617 Ending balance, individually evaluated for impairment $ 1,930 $ 4,213 $ 458 $ 4,170 $ 6,956 $ 2,084 $ 40 $ 19,851 Ending balance, collectively evaluated for impairment $ 89,285 $ 221,777 $ 172,282 $ 234,609 $ 1,062,170 $ 754,785 $ 83,858 $ 2,618,766 Changes in the allowance for loan losses for the three and six months ended June 30, 2018 were as follows: Three Months Ended June 30, 2018 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 $ 2,253 $ 4,658 $ 2,780 $ 3,709 $ 8,655 $ 5,794 $ 1,061 $ 28,910 Charge-offs (5 ) (176 ) — — (205 ) (53 ) (108 ) (547 ) Recoveries 17 193 2 19 147 13 45 436 Provision (194 ) 365 272 (253 ) 305 (57 ) 273 711 Ending balance $ 2,071 $ 5,040 $ 3,054 $ 3,475 $ 8,902 $ 5,697 $ 1,271 $ 29,510 Six Months Ended June 30, 2018 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 $ 2,294 $ 4,837 $ 2,989 $ 3,669 $ 8,668 $ 5,700 $ 1,243 $ 29,400 Charge-offs (5 ) (206 ) — — (326 ) (54 ) (223 ) (814 ) Recoveries 29 441 145 19 245 17 82 978 Provision (247 ) (32 ) (80 ) (213 ) 315 34 169 (54 ) Ending balance $ 2,071 $ 5,040 $ 3,054 $ 3,475 $ 8,902 $ 5,697 $ 1,271 $ 29,510 Ending balance, individually evaluated for impairment $ 189 $ 706 $ 36 $ 13 $ 71 $ 443 $ 60 $ 1,518 Ending balance, collectively evaluated for impairment $ 1,882 $ 4,334 $ 3,018 $ 3,462 $ 8,831 $ 5,254 $ 1,211 $ 27,992 Loans: Ending balance $ 81,171 $ 219,693 $ 184,370 $ 227,124 $ 1,010,836 $ 699,106 $ 80,572 $ 2,502,872 Ending balance, individually evaluated for impairment $ 3,718 $ 3,524 $ 942 $ 4,276 $ 6,980 $ 7,958 $ 60 $ 27,458 Ending balance, collectively evaluated for impairment $ 77,453 $ 216,169 $ 183,428 $ 222,848 $ 1,003,856 $ 691,148 $ 80,512 $ 2,475,414 The following table presents the credit quality indicators by type of loans in each category as of June 30, 2019 and December 31, 2018 , 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, 2019 Grade: Excellent $ 4,235 $ 3,082 $ — $ 200 Good 13,807 44,159 8,472 19,656 Satisfactory 41,518 120,512 46,620 38,049 Monitor 22,999 45,685 15,156 33,611 Special Mention 3,132 7,624 2,715 7,540 Substandard 5,524 4,928 — 721 Total $ 91,215 $ 225,990 $ 72,963 $ 99,777 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, 2019 Grade: Excellent $ 6,181 $ 1,917 $ 515 $ 21,277 Good 51,379 30,775 4,224 50,231 Satisfactory 121,427 752,345 138,761 198,175 Monitor 48,899 103,686 6,250 59,062 Special Mention 3,066 9,574 1,240 15,856 Substandard 7,827 18,205 1,634 6,144 Total $ 238,779 $ 916,502 $ 152,624 $ 350,745 Real Estate: Mortgage, commercial Loans to individuals Obligations of state and political subdivisions Total June 30, 2019 Grade: Excellent $ 34,711 $ — $ 7,819 $ 79,937 Good 84,394 141 15,086 322,324 Satisfactory 197,396 30,015 21,597 1,706,415 Monitor 78,501 605 8,015 422,469 Special Mention 2,807 179 400 54,133 Substandard 8,315 41 — 53,339 Total $ 406,124 $ 30,981 $ 52,917 $ 2,638,617 Agricultural Commercial and Financial Real Estate: Construction, 1 to 4 family residential Real Estate: Construction, land development and commercial December 31, 2018 Grade: Excellent $ 3,667 $ 3,322 $ — $ 209 Good 15,342 51,562 13,029 16,667 Satisfactory 39,897 121,759 42,043 68,123 Monitor 27,510 35,897 15,045 19,888 Special Mention 647 11,418 1,767 7,635 Substandard 5,610 5,543 395 1,285 Total $ 92,673 $ 229,501 $ 72,279 $ 113,807 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, 2018 Grade: Excellent $ 5,619 $ 2,715 $ 520 $ 22,058 Good 52,364 33,134 4,569 60,047 Satisfactory 126,706 752,473 138,533 187,641 Monitor 41,486 96,187 6,242 60,398 Special Mention 1,055 10,439 1,130 16,065 Substandard 9,224 17,111 1,631 6,225 Total $ 236,454 $ 912,059 $ 152,625 $ 352,434 Real Estate: Mortgage, commercial Loans to individuals Obligations of state and political subdivisions Total December 31, 2018 Grade: Excellent $ 34,096 $ — $ 8,117 $ 80,323 Good 86,453 315 15,652 349,134 Satisfactory 177,271 28,797 20,685 1,703,928 Monitor 74,990 647 8,271 386,561 Special Mention 3,228 217 — 53,601 Substandard 7,276 96 — 54,396 Total $ 383,314 $ 30,072 $ 52,725 $ 2,627,943 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, 2019 and December 31, 2018 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, 2019 Agricultural $ 137 $ 95 $ 1,302 $ 1,534 $ 89,681 $ 91,215 $ 37 Commercial and financial 2,897 2,799 1,187 6,883 219,107 225,990 430 Real estate: Construction, 1 to 4 family residential 505 145 — 650 72,313 72,963 — Construction, land development and commercial 340 7,056 32 7,428 92,349 99,777 — Mortgage, farmland 229 388 769 1,386 237,393 238,779 — Mortgage, 1 to 4 family first liens 1,072 2,338 2,559 5,969 910,533 916,502 347 Mortgage, 1 to 4 family junior liens 100 — — 100 152,524 152,624 — Mortgage, multi-family — 105 — 105 350,640 350,745 — Mortgage, commercial — 276 182 458 405,666 406,124 — Loans to individuals 103 12 3 118 30,863 30,981 — Obligations of state and political subdivisions — — — — 52,917 52,917 — $ 5,383 $ 13,214 $ 6,034 $ 24,631 $ 2,613,986 $ 2,638,617 $ 814 December 31, 2018 Agricultural $ 1,026 $ — $ 135 $ 1,161 $ 91,512 $ 92,673 $ — Commercial and financial 988 459 225 1,672 227,829 229,501 — Real estate: Construction, 1 to 4 family residential — — 212 212 72,067 72,279 212 Construction, land development and commercial 233 202 — 435 113,372 113,807 — Mortgage, farmland 193 388 — 581 235,873 236,454 — Mortgage, 1 to 4 family first liens 3,972 833 3,234 8,039 904,020 912,059 158 Mortgage, 1 to 4 family junior liens 199 36 — 235 152,390 152,625 — Mortgage, multi-family — — — — 352,434 352,434 — Mortgage, commercial 733 344 — 1,077 382,237 383,314 — Loans to individuals 195 — 22 217 29,855 30,072 — Obligations of state and political subdivisions — — — — 52,725 52,725 — $ 7,539 $ 2,262 $ 3,828 $ 13,629 $ 2,614,314 $ 2,627,943 $ 370 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, 2019 and December 31, 2018 , was as follows: June 30, 2019 December 31, 2018 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 $ 1,265 $ 37 $ 628 $ 1,338 $ — $ 120 Commercial and financial 1,621 430 2,153 1,476 — 2,686 Real estate: Construction, 1 to 4 family residential — — — — 212 — Construction, land development and commercial 33 — 324 — — 328 Mortgage, farmland 1,037 — 3,133 1,062 — 3,301 Mortgage, 1 to 4 family first liens 5,666 347 1,020 5,799 158 1,143 Mortgage, 1 to 4 family junior liens — — 24 — — 24 Mortgage, multi-family 105 — — 145 — — Mortgage, commercial 1,064 — 915 1,009 — 937 $ 10,791 $ 814 $ 8,197 $ 10,829 $ 370 $ 8,539 (1) There were $4.70 million and $4.84 million of TDR loans included within nonaccrual loans as of June 30, 2019 and December 31, 2018 , respectively. Loans 90 days or more past due that are still accruing interest increased $0.44 million from December 31, 2018 to June 30, 2019 due to an increase in the number of accruing loans past due 90 days or more. As of June 30, 2019 there were 8 accruing loans past due 90 days or more. The average accruing loans past due as of June 30, 2019 are $0.10 million . There were 2 accruing loans past due 90 days or more as of December 31, 2018 and the average loan balance was $0.19 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, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Number of contracts Recorded investment Commitments outstanding Number of contracts Recorded investment Commitments outstanding (Amounts In Thousands) (Amounts In Thousands) Agricultural 9 $ 1,758 $ 2 5 $ 1,316 $ 91 Commercial and financial 16 3,384 95 13 3,867 75 Real estate: Construction, 1 to 4 family residential — — — — — — Construction, land development and commercial 2 325 — 2 328 — Mortgage, farmland 8 4,103 — 8 4,291 — Mortgage, 1 to 4 family first liens 14 1,546 — 16 1,710 — Mortgage, 1 to 4 family junior liens 1 24 — 1 24 — Mortgage, multi-family — — — — — — Mortgage, commercial 9 1,757 — 9 1,839 — Loans to individuals — — — — — — 59 $ 12,897 $ 97 54 $ 13,375 $ 166 The following is a summary of TDR loans that were modified during the three and six months ended June 30, 2019 : Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 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) Agricultural 3 $ 324 $ 324 4 $ 574 $ 574 Commercial and financial 3 303 303 3 303 303 Real estate: Construction, 1 to 4 family residential — — — — — — Construction, land development and commercial — — — — — — Mortgage, farmland — — — 1 620 620 Mortgage, 1 to 4 family first lien — — — — — — Mortgage, 1 to 4 family junior liens — — — — — — Mortgage, multi-family — — — — — — Mortgage, commercial — — — — — — 6 $ 627 $ 627 8 $ 1,497 $ 1,497 The Company had commitments to lend $0.10 million in additional borrowings to restructured loan customers as of June 30, 2019 . The Company had commitments to lend $0.17 million in additional borrowings to restructured loan customers as of December 31, 2018 . 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, 2019 and none for the year ended December 31, 2018 . Information regarding impaired loans as of and for the three and six months ended June 30, 2019 is as follows: June 30, 2019 Three Months Ended Six Months Ended June 30, 2019 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 $ 1,680 $ 2,168 $ — $ 1,777 $ 1 $ 1,757 $ 3 Commercial and financial 1,655 2,565 — 1,844 15 1,773 29 Real estate: Construction, 1 to 4 family residential 101 144 — 111 — 106 — Construction, land development and commercial 357 381 — 364 4 363 9 Mortgage, farmland 4,170 4,648 — 4,198 39 4,189 78 Mortgage, 1 to 4 family first liens 5,820 7,759 — 6,054 8 5,982 15 Mortgage, 1 to 4 family junior liens — 250 — — — — — Mortgage, multi-family 105 213 — 144 — 125 — Mortgage, commercial 1,906 2,724 — 2,068 10 1,997 19 Loans to individuals — 14 — — — — — $ 15,794 $ 20,866 $ — $ 16,560 $ 77 $ 16,292 $ 153 With an allowance recorded: Agricultural $ 250 $ 250 $ 213 $ 287 $ 4 $ 269 $ 7 Commercial and financial 2,558 2,856 1,059 3,125 29 2,918 56 Real estate: Construction, 1 to 4 family residential — — — — — — — Construction, land development and commercial — — — — — — — Mortgage, farmland — — — — — — — Mortgage, 1 to 4 family first liens 1,112 1,161 69 1,175 9 1,143 16 Mortgage, 1 to 4 family junior liens 24 24 1 24 — 24 1 Mortgage, multi-family — — — — — — — Mortgage, commercial 73 73 1 74 1 74 2 Loans to individuals 40 40 40 56 2 47 3 $ 4,057 $ 4,404 $ 1,383 $ 4,741 $ 45 $ 4,475 $ 85 Total: Agricultural $ 1,930 $ 2,418 $ 213 $ 2,064 $ 5 $ 2,026 $ 10 Commercial and financial 4,213 5,421 1,059 4,969 44 4,691 85 Real estate: Construction, 1 to 4 family residential 101 144 — 111 — 106 — Construction, land development and commercial 357 381 — 364 4 363 9 Mortgage, farmland 4,170 4,648 — 4,198 39 4,189 78 Mortgage, 1 to 4 family first liens 6,932 8,920 69 7,229 17 7,125 31 Mortgage, 1 to 4 family junior liens 24 274 1 24 — 24 1 Mortgage, multi-family 105 213 — 144 — 125 — Mortgage, commercial 1,979 2,797 1 2,142 11 2,071 21 Loans to individuals 40 54 40 56 2 47 3 $ 19,851 $ 25,270 $ 1,383 $ 21,301 $ 122 $ 20,767 $ 238 Information regarding impaired loans as of December 31, 2018 is as follows: Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: (Amounts In Thousands) Agricultural $ 1,395 $ 1,663 $ — Commercial and financial 1,650 2,503 — Real estate: Construction, 1 to 4 family residential 111 148 — Construction, land development and commercial 328 344 — Mortgage, farmland 3,612 4,071 — Mortgage, 1 to 4 family first liens 6,089 7,819 — Mortgage, 1 to 4 family junior liens — 254 — Mortgage, multi-family 145 213 — Mortgage, commercial 1,871 2,486 — Loans to individuals — 14 — $ 15,201 $ 19,515 $ — With an allowance recorded: Agricultural $ 1,065 $ 1,229 $ 479 Commercial and financial 2,512 2,512 1,189 Real estate: Construction, 1 to 4 family residential 698 698 4 Construction, land development and commercial — — — Mortgage, farmland — — — Mortgage, 1 to 4 family first liens 899 974 70 Mortgage, 1 to 4 family junior liens 24 24 2 Mortgage, multi-family 7,447 7,447 305 Mortgage, commercial 75 75 1 Loans to individuals 64 64 64 $ 12,784 $ 13,023 $ 2,114 Total: Agricultural $ 2,460 $ 2,892 $ 479 Commercial and financial 4,162 5,015 1,189 Real estate: Construction, 1 to 4 family residential 809 846 4 Construction, land development and commercial 328 344 — Mortgage, farmland 3,612 4,071 — Mortgage, 1 to 4 family first liens 6,988 8,793 70 Mortgage, 1 to 4 family junior liens 24 278 2 Mortgage, multi-family 7,592 7,660 305 Mortgage, commercial 1,946 2,561 1 Loans to individuals 64 78 64 $ 27,985 $ 32,538 $ 2,114 Impaired loans decreased $8.13 million from December 31, 2018 to June 30, 2019 . 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 0.75% of loans held for investment as of June 30, 2019 and 1.06% as of December 31, 2018 . The decrease in impaired loans is due to a decrease of $8.17 million in loans with a specific allowance for losses, a decrease in TDR loans of $0.34 million , a decrease in nonaccrual loans of $0.04 million , and is offset by a $0.44 million increase in 90 days or more accruing loans from December 31, 2018 to June 30, 2019 . 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. |