Loans | Loans Classes of loans are as follows: September 30, December 31, (Amounts In Thousands) Agricultural $ 91,621 $ 92,673 Commercial and financial 219,362 229,501 Real estate: Construction, 1 to 4 family residential 80,969 72,279 Construction, land development and commercial 108,662 113,807 Mortgage, farmland 237,513 236,454 Mortgage, 1 to 4 family first liens 913,206 912,059 Mortgage, 1 to 4 family junior liens 149,969 152,625 Mortgage, multi-family 350,378 352,434 Mortgage, commercial 401,615 383,314 Loans to individuals 32,613 30,072 Obligations of state and political subdivisions 52,030 52,725 $ 2,637,938 $ 2,627,943 Net unamortized fees and costs 943 952 $ 2,638,881 $ 2,628,895 Less allowance for loan losses 35,570 37,810 $ 2,603,311 $ 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 nine months ended September 30, 2019 were as follows: Three Months Ended September 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 $ 2,535 $ 5,603 $ 2,646 $ 3,891 $ 11,384 $ 8,194 $ 1,397 $ 35,650 Charge-offs (135 ) (177 ) — — (332 ) — (92 ) (736 ) Recoveries 18 128 2 — 317 12 35 512 Provision 288 (143 ) 240 96 (166 ) (110 ) (61 ) 144 Ending balance $ 2,706 $ 5,411 $ 2,888 $ 3,987 $ 11,203 $ 8,096 $ 1,279 $ 35,570 Nine Months Ended September 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 (135 ) (641 ) (9 ) — (711 ) (133 ) (326 ) (1,955 ) Recoveries 87 451 6 5 576 100 132 1,357 Provision (35 ) (225 ) (401 ) 10 (1,178 ) (36 ) 223 (1,642 ) Ending balance $ 2,706 $ 5,411 $ 2,888 $ 3,987 $ 11,203 $ 8,096 $ 1,279 $ 35,570 Ending balance, individually evaluated for impairment $ 341 $ 1,008 $ — $ — $ 65 $ 1 $ 2 $ 1,417 Ending balance, collectively evaluated for impairment $ 2,365 $ 4,403 $ 2,888 $ 3,987 $ 11,138 $ 8,095 $ 1,277 $ 34,153 Loans: Ending balance $ 91,621 $ 219,362 $ 189,631 $ 237,513 $ 1,063,175 $ 751,993 $ 84,643 $ 2,637,938 Ending balance, individually evaluated for impairment $ 1,865 $ 3,176 $ 456 $ 4,117 $ 7,729 $ 2,043 $ 2 $ 19,388 Ending balance, collectively evaluated for impairment $ 89,756 $ 216,186 $ 189,175 $ 233,396 $ 1,055,446 $ 749,950 $ 84,641 $ 2,618,550 Changes in the allowance for loan losses for the three and nine months ended September 30, 2018 were as follows: Three Months Ended September 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 $ 2,071 $ 5,040 $ 3,054 $ 3,475 $ 8,902 $ 5,697 $ 1,271 $ 29,510 Charge-offs (68 ) (241 ) — — (280 ) (107 ) (197 ) (893 ) Recoveries 74 415 2 10 187 80 32 800 Provision (47 ) (133 ) (188 ) 50 1,756 193 (38 ) 1,593 Ending balance $ 2,030 $ 5,081 $ 2,868 $ 3,535 $ 10,565 $ 5,863 $ 1,068 $ 31,010 Nine Months Ended September 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 (72 ) (447 ) — — (607 ) (161 ) (420 ) (1,707 ) Recoveries 102 856 147 29 433 97 114 1,778 Provision (294 ) (165 ) (268 ) (163 ) 2,071 227 131 1,539 Ending balance $ 2,030 $ 5,081 $ 2,868 $ 3,535 $ 10,565 $ 5,863 $ 1,068 $ 31,010 Ending balance, individually evaluated for impairment $ 118 $ 1,165 $ 3 $ — $ 91 $ 40 $ 48 $ 1,465 Ending balance, collectively evaluated for impairment $ 1,912 $ 3,916 $ 2,865 $ 3,535 $ 10,474 $ 5,823 $ 1,020 $ 29,545 Loans: Ending balance $ 79,155 $ 214,681 $ 171,944 $ 230,032 $ 1,049,249 $ 729,626 $ 81,095 $ 2,555,782 Ending balance, individually evaluated for impairment $ 2,342 $ 3,288 $ 927 $ 3,729 $ 6,728 $ 8,217 $ 48 $ 25,279 Ending balance, collectively evaluated for impairment $ 76,813 $ 211,393 $ 171,017 $ 226,303 $ 1,042,521 $ 721,409 $ 81,047 $ 2,530,503 The following table presents the credit quality indicators by type of loans in each category as of September 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 September 30, 2019 Grade: Excellent $ 3,484 $ 3,078 $ — $ 194 Good 12,754 40,411 8,071 24,959 Satisfactory 42,257 120,698 55,490 41,622 Monitor 26,226 44,518 14,856 33,714 Special Mention 2,700 7,069 2,552 7,539 Substandard 4,200 3,588 — 634 Total $ 91,621 $ 219,362 $ 80,969 $ 108,662 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, 2019 Grade: Excellent $ 6,268 $ 1,859 $ 607 $ 21,016 Good 40,387 33,034 4,014 49,684 Satisfactory 131,790 752,092 136,188 187,940 Monitor 48,244 100,469 6,070 57,945 Special Mention 3,056 9,111 1,455 27,729 Substandard 7,768 16,641 1,635 6,064 Total $ 237,513 $ 913,206 $ 149,969 $ 350,378 Real Estate: Mortgage, commercial Loans to individuals Obligations of state and political subdivisions Total September 30, 2019 Grade: Excellent $ 34,016 $ — $ 7,652 $ 78,174 Good 81,831 224 16,438 311,807 Satisfactory 193,035 31,635 20,128 1,712,875 Monitor 82,657 560 7,416 422,675 Special Mention 6,122 172 396 67,901 Substandard 3,954 22 — 44,506 Total $ 401,615 $ 32,613 $ 52,030 $ 2,637,938 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 September 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) September 30, 2019 Agricultural $ 1,438 $ 246 $ — $ 1,684 $ 89,937 $ 91,621 $ — Commercial and financial 271 200 103 574 218,788 219,362 102 Real estate: Construction, 1 to 4 family residential 1,109 438 — 1,547 79,422 80,969 — Construction, land development and commercial 1,041 — 33 1,074 107,588 108,662 — Mortgage, farmland 964 406 — 1,370 236,143 237,513 — Mortgage, 1 to 4 family first liens 973 2,874 3,276 7,123 906,083 913,206 641 Mortgage, 1 to 4 family junior liens 430 133 61 624 149,345 149,969 61 Mortgage, multi-family — 101 — 101 350,277 350,378 — Mortgage, commercial 598 276 182 1,056 400,559 401,615 — Loans to individuals 144 30 3 177 32,436 32,613 — Obligations of state and political subdivisions — — — — 52,030 52,030 — $ 6,968 $ 4,704 $ 3,658 $ 15,330 $ 2,622,608 $ 2,637,938 $ 804 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 September 30, 2019 and December 31, 2018 , was as follows: September 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 $ 1,114 $ — $ 543 $ 1,338 $ — $ 120 Commercial and financial 820 102 2,053 1,476 — 2,686 Real estate: Construction, 1 to 4 family residential — — — — 212 — Construction, land development and commercial 33 — 323 — — 328 Mortgage, farmland 986 — 3,131 1,062 — 3,301 Mortgage, 1 to 4 family first liens 6,093 641 1,011 5,799 158 1,143 Mortgage, 1 to 4 family junior liens — 61 24 — — 24 Mortgage, multi-family 101 — — 145 — — Mortgage, commercial 1,039 — 903 1,009 — 937 $ 10,186 $ 804 $ 7,988 $ 10,829 $ 370 $ 8,539 (1) There were $4.03 million and $4.84 million of TDR loans included within nonaccrual loans as of September 30, 2019 and December 31, 2018 , respectively. Loans 90 days or more past due that are still accruing interest increased $0.43 million from December 31, 2018 to September 30, 2019 due to an increase in the number of accruing loans past due 90 days or more. As of September 30, 2019 there were 9 accruing loans past due 90 days or more. The average accruing loans past due as of September 30, 2019 are $0.09 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 September 30, 2019 and December 31, 2018 : September 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 $ 1,657 $ 3 5 $ 1,316 $ 91 Commercial and financial 15 2,703 95 13 3,867 75 Real estate: Construction, 1 to 4 family residential — — — — — — Construction, land development and commercial 2 323 — 2 328 — Mortgage, farmland 8 4,049 — 8 4,291 — Mortgage, 1 to 4 family first liens 14 1,535 — 16 1,710 — Mortgage, 1 to 4 family junior liens 1 24 — 1 24 — Mortgage, multi-family — — — — — — Mortgage, commercial 8 1,724 — 9 1,839 — Loans to individuals — — — — — — 57 $ 12,015 $ 98 54 $ 13,375 $ 166 The following is a summary of TDR loans that were modified during the three and nine months ended September 30, 2019 : Three Months Ended September 30, 2019 Nine Months Ended September 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 — $ — $ — 4 $ 574 $ 574 Commercial and financial — — — 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 — — — — — — — $ — $ — 8 $ 1,497 $ 1,497 The Company had commitments to lend $0.10 million in additional borrowings to restructured loan customers as of September 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 September 30, 2019 and no ne for the year ended December 31, 2018 . Information regarding impaired loans as of and for the three and nine months ended September 30, 2019 is as follows: September 30, 2019 Three Months Ended Nine Months Ended September 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 $ 1,524 $ 2,007 $ — $ 1,535 $ 1 $ 1,611 $ 4 Commercial and financial 1,541 2,702 — 1,875 15 2,151 51 Real estate: Construction, 1 to 4 family residential 101 144 — 101 — 106 — Construction, land development and commercial 355 379 — 356 4 362 13 Mortgage, farmland 4,117 4,633 — 4,144 40 4,162 118 Mortgage, 1 to 4 family first liens 6,052 7,955 — 6,108 8 6,124 22 Mortgage, 1 to 4 family junior liens — 248 — — — — — Mortgage, multi-family 101 213 — 103 — 123 — Mortgage, commercial 1,871 2,702 — 1,888 10 1,980 29 Loans to individuals — 14 — — — — — $ 15,662 $ 20,997 $ — $ 16,110 $ 78 $ 16,619 $ 237 With an allowance recorded: Agricultural $ 341 $ 341 $ 341 $ 464 $ 7 $ 491 $ 21 Commercial and financial 1,635 1,670 1,008 1,607 21 1,715 67 Real estate: Construction, 1 to 4 family residential — — — — — — — Construction, land development and commercial — — — — — — — Mortgage, farmland — — — — — — — Mortgage, 1 to 4 family first liens 1,593 1,700 62 1,613 12 1,529 36 Mortgage, 1 to 4 family junior liens 84 84 3 86 1 89 3 Mortgage, multi-family — — — — — — — Mortgage, commercial 71 71 1 72 1 73 3 Loans to individuals 2 2 2 2 — 2 — $ 3,726 $ 3,868 $ 1,417 $ 3,844 $ 42 $ 3,899 $ 130 Total: Agricultural $ 1,865 $ 2,348 $ 341 $ 1,999 $ 8 $ 2,102 $ 25 Commercial and financial 3,176 4,372 1,008 3,482 36 3,866 118 Real estate: Construction, 1 to 4 family residential 101 144 — 101 — 106 — Construction, land development and commercial 355 379 — 356 4 362 13 Mortgage, farmland 4,117 4,633 — 4,144 40 4,162 118 Mortgage, 1 to 4 family first liens 7,645 9,655 62 7,721 20 7,653 58 Mortgage, 1 to 4 family junior liens 84 332 3 86 1 89 3 Mortgage, multi-family 101 213 — 103 — 123 — Mortgage, commercial 1,942 2,773 1 1,960 11 2,053 32 Loans to individuals 2 16 2 2 — 2 — $ 19,388 $ 24,865 $ 1,417 $ 19,954 $ 120 $ 20,518 $ 367 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 $8.60 million from December 31, 2018 to September 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 0.73% of loans held for investment as of September 30, 2019 and 1.06% as of December 31, 2018 . The decrease in impaired loans is due to a decrease of $7.83 million in loans with a specific reserve, a decrease in TDR loans of $0.55 million , a decrease in nonaccrual loans of $0.64 million , and is offset by a $0.43 million increase in 90 days or more accruing loans from December 31, 2018 to September 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. |