BLUE RIDGE BANKSHARES, EVC.  NOTES TO THE CONSOLIDATED FEVANCIAL STATEMENTS  December 31,2012  Note 4. Loans Receivable and Related Allowance for Loan Losses (Continued)  21 (Continued) The following tables summarize the primary segments of the ALLL, segregated into the amount  required for loans individually evaluated for impairment and the amount required for loans  collectively evaluated for impairment as of December 31, 2012 and 2011. Activity in the allowance is  presented forthe each of the twelve months ended December 31, 2012 and 2011 (in thousands):  Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied  process in order to make appropriate and timely adjustments to the ALLL. When information  confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off  against the ALLL.  "Pass" rated credits are segregated from "Criticized" credits for the application of qualitative factors.  Management has identified a number of qualitative factors which it uses to supplement the historical  charge-off factor because these factors are likely to cause estimated credit losses associated with the  existing loan pools to differ from historical loss experience. The qualitative factors are evaluated  quarterly and updated using information obtained from intemal, regulatory, and govemmental  sources. The Bank’s qualitative factors consist of: national and local economic frends and conditions;  levels of and frends in delinquency rates and non-accmal loans; levels of and frends in the Bank’s  borrowers in bankmptcy; trends in volumes and terms of loans; effects of changes in lending policies  and strategies; and concenfrations of credit from a loan type, industry and/or geographic standpoint.  Unallocated Total  ALLL Balance at  December 31,2011  Charge-offs  Recoveries  Provision  ALLL Balance at  December 31, 2012  Individually evaluated for  impainnent  Collectively evaluated for  impainnent  Commercial  $  $  $  $  262  (14)  36  284  - 284  Commercial  $  $  $  $  Real  Estate  665  (267)  - 353  751  - 751  Consumer  $  $  $  $  56  (39)  16  10  43  - 43  Residential  $  _$_  $  $  158  (41)  - 243  360  - 360  304 $ 12 $ 1,457  (361)  16  40 (12) 670 $ 344 J ;_ $ 1,782  $ 344 $ - $ 1,782 