Allowance for Loan Losses | The following table presents the activity of the allowance for loan losses by portfolio segment for the three months ended September 30. Allowance for Loan Losses: September 30, 2015 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 10,931 $ 1,760 $ 4,678 $ 2,492 $ 19,861 Provision for loan losses 1,338 158 1,052 (1,498 ) 1,050 Loans charged -off (1,874 ) (220 ) (1,201 ) — (3,295 ) Recoveries 1,694 196 419 — 2,309 Ending Balance $ 12,089 $ 1,894 $ 4,948 $ 994 $ 19,925 Allowance for Loan Losses: September 30, 2014 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 10,850 $ 1,374 $ 3,769 $ 2,262 $ 18,255 Provision for loan losses* 589 72 1,047 (178 ) 1,530 Loans charged -off (1,310 ) (153 ) (1,193 ) — (2,656 ) Recoveries 51 34 293 — 378 Ending Balance $ 10,180 $ 1,327 $ 3,916 $ 2,084 $ 17,507 * Provision before decrease of $ 24 thousand in 2014 for increase in FDIC indemnification asset The following table presents the activity of the allowance for loan losses by portfolio segment for the nine months ended September 30 Allowance for Loan Losses: September 30, 2015 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 10,915 $ 1,374 $ 4,370 $ 2,180 $ 18,839 Provision for loan losses 1,505 811 2,520 (1,186 ) 3,650 Loans charged -off (2,482 ) (626 ) (3,489 ) — (6,597 ) Recoveries 2,151 335 1,547 — 4,033 Ending Balance $ 12,089 $ 1,894 $ 4,948 $ 994 $ 19,925 Allowance for Loan Losses: September 30, 2014 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 12,450 $ 1,585 $ 3,650 $ 2,383 $ 20,068 Provision for loan losses* 270 84 2,380 (299 ) 2,435 Loans charged -off (2,956 ) (958 ) (3,228 ) — (7,142 ) Recoveries 416 616 1,114 — 2,146 Ending Balance $ 10,180 $ 1,327 $ 3,916 $ 2,084 $ 17,507 * Provision before increase of $675 thousand in 2014 for decrease in FDIC indemnification asset The following table presents the allocation of the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method at September 30, 2015 and December 31, 2014 . Allowance for Loan Losses September 30, 2015 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Individually evaluated for impairment $ 996 $ 232 $ — $ — $ 1,228 Collectively evaluated for impairment 10,902 1,662 4,948 994 18,506 Acquired with deteriorated credit quality 191 — — — 191 Ending Balance $ 12,089 $ 1,894 $ 4,948 $ 994 $ 19,925 Loans: September 30, 2015 (Dollar amounts in thousands) Commercial Residential Consumer Total Individually evaluated for impairment $ 9,648 $ 934 $ — $ 10,582 Collectively evaluated for impairment 1,032,992 450,198 273,436 1,756,626 Acquired with deteriorated credit quality 4,194 1,586 — 5,780 Ending Balance $ 1,046,834 $ 452,718 $ 273,436 $ 1,772,988 Allowance for Loan Losses: December 31, 2014 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Individually evaluated for impairment 1,911 — — — 1,911 Collectively evaluated for impairment 8,733 1,365 4,370 2,180 16,648 Acquired with deteriorated credit quality 271 9 — — 280 Ending Balance $ 10,915 $ 1,374 $ 4,370 $ 2,180 $ 18,839 Loans December 31, 2014 (Dollar amounts in thousands) Commercial Residential Consumer Total Individually evaluated for impairment 14,573 33 — 14,606 Collectively evaluated for impairment 1,030,949 468,872 267,880 1,767,701 Acquired with deteriorated credit quality 4,887 1,631 — 6,518 Ending Balance $ 1,050,409 $ 470,536 $ 267,880 $ 1,788,825 The following tables present loans individually evaluated for impairment by class of loans. September 30, 2015 Unpaid Principal Recorded Allowance for Loan Losses Average Recorded Interest Income Cash Basis Interest (Dollar amounts in thousands) Balance Investment Allocated Investment Recognized Recognized With no related allowance recorded: Commercial Commercial & Industrial $ 1,565 $ 1,272 $ — $ 1,939 $ — $ — Farmland — — — — — — Non Farm, Non Residential 3,243 3,243 — 1,800 — — Agriculture — — — — — — All Other Commercial 1,776 1,776 — 1,029 — — Residential First Liens 30 30 — 15 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — With an allowance recorded: Commercial Commercial & Industrial 1,618 1,618 278 4,080 — — Farmland — — — — — — Non Farm, Non Residential 1,506 1,506 718 4,248 — — Agriculture — — — — — — All Other Commercial 233 233 — 548 — — Residential First Liens 904 904 232 357 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — TOTAL $ 10,875 $ 10,582 $ 1,228 $ 14,016 $ — $ — December 31, 2014 Unpaid Principal Recorded Allowance for Loan Losses Average Recorded Interest Income Cash Basis Interest Income (Dollar amounts in thousands) Balance Investment Allocated Investment Recognized Recognized With no related allowance recorded: Commercial Commercial & Industrial $ 1,200 $ 926 $ — $ 2,589 $ — $ — Farmland — — — — — — Non Farm, Non Residential — — — 58 — — Agriculture — — — — — — All Other Commercial 292 292 — 58 — — Residential First Liens — — — 5 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — With an allowance recorded: Commercial Commercial & Industrial 7,388 5,874 1,056 6,177 — — Farmland — — — — — — Non Farm, Non Residential 6,654 6,654 753 6,698 — — Agriculture — — — — — — All Other Commercial 827 827 102 1,112 — — Residential First Liens 33 33 — 35 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — TOTAL $ 16,394 $ 14,606 $ 1,911 $ 16,732 $ — $ — Three Months Ended Nine Months Ended Average Interest Cash Basis Average Interest Cash Basis (Dollar amounts in thousands) Investment Recognized Recognized Investment Recognized Recognized With no related allowance recorded: Commercial Commercial & Industrial $ 3,290 $ — $ — $ 1,939 $ — $ — Farmland — — — — — — Non Farm, Non Residential 3,599 — — 1,800 — — Agriculture — — — — — — All Other Commercial 1,785 — — 1,029 — — Residential First Liens 31 — — 15 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — With an allowance recorded: Commercial Commercial & Industrial 1,714 — — 4,080 — — Farmland — — — — — — Non Farm, Non Residential 1,929 — — 4,248 — — Agriculture — — — — — — All Other Commercial 393 — — 548 — — Residential First Liens 565 — — 357 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — TOTAL $ 13,306 $ — $ — $ 14,016 $ — $ — Three Months Ended Nine Months Ended Average Interest Cash Basis Average Interest Cash Basis (Dollar amounts in thousands) Investment Recognized Recognized Investment Recognized Recognized With no related allowance recorded: Commercial Commercial & Industrial $ 4,103 $ — $ — $ 3,005 $ — $ — Farmland — — — — — — Non Farm, Non Residential 42 — — 73 — — Agriculture — — — — — — All Other Commercial — — — — — — Residential First Liens 12 — — 6 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — With an allowance recorded: Commercial Commercial & Industrial 4,420 — — 6,253 — — Farmland — — — — — — Non Farm, Non Residential 6,677 — — 6,709 — — Agriculture — — — — — — All Other Commercial 1,322 — — 1,184 — — Residential First Liens 35 — — 36 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — TOTAL $ 16,611 $ — $ — $ 17,266 $ — $ — The tables below presents the recorded investment in non-performing loans. September 30, 2015 Loans Past Due Over 90 Day Still Troubled Debt (Dollar amounts in thousands) Accruing Accruing Nonaccrual Nonaccrual Commercial Commercial & Industrial $ — $ 5 $ 430 $ 3,943 Farmland — — — 385 Non Farm, Non Residential — 7 3,190 2,666 Agriculture 588 — — 289 All Other Commercial — — — 1,993 Residential First Liens 798 4,558 995 5,062 Home Equity 62 — — 295 Junior Liens 13 — — 230 Multifamily — — — — All Other Residential — — — 115 Consumer Motor Vehicle 234 181 11 150 All Other Consumer 6 40 423 984 TOTAL $ 1,701 $ 4,791 $ 5,049 $ 16,112 December 31, 2014 Loans Past Due Over 90 Day Still Troubled Debt (Dollar amounts in thousands) Accruing Accruing Nonaccrual Nonaccrual Commercial Commercial & Industrial $ — $ 7 $ 4,961 $ 3,720 Farmland — — — 79 Non Farm, Non Residential — 10 3,987 3,388 Agriculture — — — 767 All Other Commercial — — — 1,258 Residential First Liens 603 4,357 842 3,861 Home Equity 88 — — 404 Junior Liens 12 — — 275 Multifamily — — — — All Other Residential 5 — — 111 Consumer Motor Vehicle 162 257 83 210 All Other Consumer 3 1 269 961 TOTAL $ 873 $ 4,632 $ 10,142 $ 15,034 There are $184 thousand loans covered by loss share agreements with the FDIC included in loans past due over 90 days still on accrual at September 30, 2015 and there were $37 thousand at December 31, 2014 . There were $242 thousand of covered loans included in non-accrual loans at September 30, 2015 and there were $274 thousand at December 31, 2014 . There were no covered loans at September 30, 2015 or December 31, 2014 that were deemed impaired. Non-performing loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following tables presents the aging of the recorded investment in loans by past due category and class of loans. September 30, 2015 30-59 Days 60-89 Days Greater than 90 days Total (Dollar amounts in thousands) Past Due Past Due Past Due Past Due Current Total Commercial Commercial & Industrial $ 190 $ 321 $ 1,825 $ 2,336 $ 474,550 $ 476,886 Farmland 25 567 — 592 103,759 104,351 Non Farm, Non Residential 157 — 321 478 211,797 212,275 Agriculture 306 368 615 1,289 130,491 131,780 All Other Commercial 54 — 148 202 121,340 121,542 Residential First Liens 1,083 813 1,723 3,619 298,948 302,567 Home Equity 154 61 161 376 37,837 38,213 Junior Liens 306 87 187 580 30,602 31,182 Multifamily — — — — 71,916 71,916 All Other Residential — — — — 8,840 8,840 Consumer Motor Vehicle 2,619 495 251 3,365 247,719 251,084 All Other Consumer 94 49 6 149 22,203 22,352 TOTAL $ 4,988 $ 2,761 $ 5,237 $ 12,986 $ 1,760,002 $ 1,772,988 December 31, 2014 30-59 Days 60-89 Days Greater than 90 days Total (Dollar amounts in thousands) Past Due Past Due Past Due Past Due Current Total Commercial Commercial & Industrial $ 574 $ 416 $ 3,046 $ 4,036 $ 451,549 $ 455,585 Farmland — — — — 95,452 95,452 Non Farm, Non Residential 1,528 68 202 1,798 232,440 234,238 Agriculture 246 18 502 766 149,099 149,865 All Other Commercial 255 — — 255 115,014 115,269 Residential First Liens 6,011 963 1,522 8,496 308,068 316,564 Home Equity 141 33 310 484 40,043 40,527 Junior Liens 270 83 217 570 31,487 32,057 Multifamily — — — — 72,310 72,310 All Other Residential 112 — 5 117 8,961 9,078 Consumer Motor Vehicle 3,026 557 180 3,763 242,406 246,169 All Other Consumer 114 7 3 124 21,587 21,711 TOTAL $ 12,277 $ 2,145 $ 5,987 $ 20,409 $ 1,768,416 $ 1,788,825 During the three and nine months ended September 30, 2015 and 2014 , the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDR's. 2015 (Dollar amounts in thousands) Commercial Residential Consumer Total July 1, 8,705 5,589 657 14,951 Added — 16 50 66 Charged Off — — (4 ) (4 ) Payments (5,081 ) (63 ) (41 ) (5,185 ) September 30, 3,624 5,542 662 9,828 2015 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, 8,955 5,189 614 14,758 Added — 668 239 907 Charged Off — (62 ) (44 ) (106 ) Payments (5,331 ) (253 ) (147 ) (5,731 ) September 30, 3,624 5,542 662 9,828 2014 (Dollar amounts in thousands) Commercial Residential Consumer Total July 1, 9,206 4,956 559 14,721 Added — 340 115 455 Charged Off — (67 ) (24 ) (91 ) Payments (122 ) (124 ) (81 ) (327 ) September 30, 9,084 5,105 569 14,758 2014 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, 12,327 4,330 644 17,301 Added 441 1,141 213 1,795 Charged Off (1,069 ) (67 ) (63 ) (1,199 ) Payments (2,615 ) (299 ) (225 ) (3,139 ) September 30, 9,084 5,105 569 14,758 Modification of the terms of such loans typically include one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. No modification in 2015 or 2014 resulted in the permanent reduction of the recorded investment in the loan. Modifications involving a reduction of the stated interest rate of the loan were for periods ranging from twelve months to five years. Modifications involving an extension of the maturity date were for periods ranging from twelve months to ten years. Troubled debt restructurings during the three and nine months ended September 30, 2015 and 2014 did not result in any material charge-offs or additional provision expense. The Corporation has allocated $ 36 thousand and $ 81 thousand of specific reserves to customers whose loan terms have been modified in troubled debt restructurings at both September 30, 2015 and 2014, respectively. The Corporation has not committed to lend additional amounts as of September 30, 2015 and 2014 to customers with outstanding loans that are classified as troubled debt restructurings. The charge-offs during the three and nine months ended September 30, 2015 and 2014 were not of any restructurings that had taken place in the previous 12 months. Credit Quality Indicators: The Corporation categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes loans individually by classifying the loans as to credit risk. This analysis includes non-homogeneous loans, such as commercial loans, with an outstanding balance greater than $100 thousand . Any consumer loans outstanding to a borrower who had commercial loans analyzed will be similarly risk rated. This analysis is performed on a quarterly basis. The Corporation uses the following definitions for risk ratings: Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard: Loans classified as substandard are inadequately protected by the current net worth and debt service capacity of the borrower or of any pledged collateral. These loans have a well-defined weakness or weaknesses which have clearly jeopardized repayment of principal and interest as originally intended. They are characterized by the distinct possibility that the institution will sustain some future loss if the deficiencies are not corrected. Doubtful: Loans classified as doubtful have all the weaknesses inherent in those graded substandard, with the added characteristic that the severity of the weaknesses makes collection or liquidation in full highly questionable or improbable based upon currently existing facts, conditions, and values. Furthermore, non-homogeneous loans which were not individually analyzed, but are 90+ days past due or on non-accrual are classified as substandard. Loans included in homogeneous pools, such as residential or consumer may be classified as substandard due to 90+ days delinquency, non-accrual status, bankruptcy, or loan restructuring. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are either less than $100 thousand or are included in groups of homogeneous loans. As of September 30, 2015 and December 31, 2014 , and based on the most recent analysis performed, the risk category of loans by class of loans are as follows: September 30, 2015 (Dollar amounts in thousands) Pass Special Mention Substandard Doubtful Not Rated Total Commercial Commercial & Industrial $ 408,039 $ 28,331 $ 31,171 $ 1,295 $ 6,607 $ 475,443 Farmland 90,255 7,354 4,825 — 16 102,450 Non Farm, Non Residential 184,252 8,191 19,380 36 — 211,859 Agriculture 111,296 9,804 8,790 27 166 130,083 All Other Commercial 105,584 2,691 11,193 101 1,273 120,842 Residential First Liens 98,630 4,591 8,633 718 189,034 301,606 Home Equity 11,097 453 1,348 11 25,247 38,156 Junior Liens 7,578 119 482 59 22,862 31,100 Multifamily 69,077 1,616 1,026 — 25 71,744 All Other Residential 902 — 25 — 7,892 8,819 Consumer Motor Vehicle 10,555 498 508 — 238,435 249,996 All Other Consumer 3,181 89 121 15 18,833 22,239 TOTAL $ 1,100,446 $ 63,737 $ 87,502 $ 2,262 $ 510,390 $ 1,764,337 December 31, 2014 (Dollar amounts in thousands) Pass Special Mention Substandard Doubtful Not Rated Total Commercial Commercial & Industrial $ 393,449 $ 29,081 $ 24,013 $ 2,900 $ 4,717 $ 454,160 Farmland 85,772 7,618 436 — 13 93,839 Non Farm, Non Residential 186,346 21,765 25,613 36 — 233,760 Agriculture 138,713 7,399 1,746 177 67 148,102 All Other Commercial 101,942 4,356 7,055 33 1,275 114,661 Residential First Liens 104,854 5,929 7,733 1,035 196,008 315,559 Home Equity 12,592 375 1,374 6 26,116 40,463 Junior Liens 8,112 173 561 63 23,053 31,962 Multifamily 69,080 1,801 1,249 — 3 72,133 All Other Residential 1,799 — 28 — 7,228 9,055 Consumer Motor Vehicle 11,135 402 224 — 233,302 245,063 All Other Consumer 3,169 141 87 21 18,175 21,593 TOTAL $ 1,116,963 $ 79,040 $ 70,119 $ 4,271 $ 509,957 $ 1,780,350 |