HVBC 2016 Annual Report

15 Allowance for Loan Losses . The following table sets forth activity in our allowance for loan losses for the years indicated. At or For the Years Ended June 30, 2017 2016 2015 (Dollars in thousands) Balance at beginning of year $ 487 $ 514 $ 705 Charge-offs: Residential: One- to four-family — — (233) Home equity & HELOCs (125) — — Commercial real estate — (34) (31) Commercial business — — — Construction — — — Consumer (4) (3) (7) Total charge-offs (129) (37) (271) Recoveries: Residential: One- to four-family 8 — — Home equity & HELOCs — — — Commercial real estate 25 — — Commercial business — — — Construction — — — Consumer 1 1 1 Total recoveries 34 1 1 Net charge-offs (95) (36) (270) Provision for loan losses 201 9 79 Balance at end of year $ 593 $ 487 $ 514 Ratios: Net charge-offs to average loans outstanding 0.10% 0.04% 0.32% Allowance for loan losses to non-performing loans at end of year 42.15% 42.53% 31.15% Allowance for loan losses to total loans at end of year 0.53% 0.52% 0.61%