Allowance for Loan Losses | The following table presents the activity of the allowance for loan losses by portfolio segment for the three months ended March 31. Allowance for Loan Losses: March 31, 2016 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 11,482 $ 1,834 $ 4,945 $ 1,685 $ 19,946 Provision for loan losses (275 ) 125 787 198 835 Loans charged -off (267 ) (239 ) (1,134 ) — (1,640 ) Recoveries 228 49 508 — 785 Ending Balance $ 11,168 $ 1,769 $ 5,106 $ 1,883 $ 19,926 Allowance for Loan Losses: March 31, 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 7 376 830 237 1,450 Loans charged -off (336 ) (225 ) (1,262 ) — (1,823 ) Recoveries 232 97 556 — 885 Ending Balance $ 10,818 $ 1,622 $ 4,494 $ 2,417 $ 19,351 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 March 31, 2016 and December 31, 2015 . Allowance for Loan Losses March 31, 2016 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Individually evaluated for impairment $ 881 $ 192 $ — $ — $ 1,073 Collectively evaluated for impairment 10,136 1,577 5,106 1,883 18,702 Acquired with deteriorated credit quality 151 — — — 151 Ending Balance $ 11,168 $ 1,769 $ 5,106 $ 1,883 $ 19,926 Loans: March 31, 2016 (Dollar amounts in thousands) Commercial Residential Consumer Total Individually evaluated for impairment $ 7,431 $ 712 $ — $ 8,143 Collectively evaluated for impairment 1,041,900 435,874 277,716 1,755,490 Acquired with deteriorated credit quality 4,007 1,515 — 5,522 Ending Balance $ 1,053,338 $ 438,101 $ 277,716 $ 1,769,155 Allowance for Loan Losses: December 31, 2015 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Individually evaluated for impairment 953 206 — — 1,159 Collectively evaluated for impairment 10,342 1,628 4,945 1,685 18,600 Acquired with deteriorated credit quality 187 — — — 187 Ending Balance $ 11,482 $ 1,834 $ 4,945 $ 1,685 $ 19,946 Loans December 31, 2015 (Dollar amounts in thousands) Commercial Residential Consumer Total Individually evaluated for impairment 8,823 902 — 9,725 Collectively evaluated for impairment 1,037,086 443,224 274,134 1,754,444 Acquired with deteriorated credit quality 4,092 1,529 — 5,621 Ending Balance $ 1,050,001 $ 445,655 $ 274,134 $ 1,769,790 The following tables present loans individually evaluated for impairment by class of loans. March 31, 2016 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 $ 1,357 $ 1,063 $ — $ 1,143 $ — $ — Farmland — — — — — — Non Farm, Non Residential 3,155 3,155 — 3,178 — — Agriculture — — — — — — All Other Commercial 1,437 1,437 — 1,599 — — Residential First Liens 28 28 — 29 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — With an allowance recorded: Commercial Commercial & Industrial 600 600 204 799 — — Farmland — — — — — — Non Farm, Non Residential 1,176 1,176 677 1,296 — — Agriculture — — — — — — All Other Commercial — — — 113 — — Residential First Liens 684 684 192 779 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — TOTAL $ 8,437 $ 8,143 $ 1,073 $ 8,936 $ — $ — December 31, 2015 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 $ 1,516 $ 1,223 $ — $ 1,796 $ — $ — Farmland — — — — — — Non Farm, Non Residential 3,202 3,202 — 2,080 — — Agriculture — — — — — — All Other Commercial 1,760 1,760 — 1,175 — — Residential First Liens 29 29 — 18 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — With an allowance recorded: Commercial Commercial & Industrial 998 998 212 3,463 — — Farmland — — — — — — Non Farm, Non Residential 1,415 1,415 741 3,682 — — Agriculture — — — — — — All Other Commercial 225 225 — 483 — — Residential First Liens 873 873 206 460 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — TOTAL $ 10,018 $ 9,725 $ 1,159 $ 13,157 $ — $ — Three Months Ended Average Interest Cash Basis (Dollar amounts in thousands) Investment Recognized Recognized With no related allowance recorded: Commercial Commercial & Industrial $ 589 $ — $ — Farmland — — — Non Farm, Non Residential — — — Agriculture — — — All Other Commercial 274 — — Residential First Liens — — — Home Equity — — — Junior Liens — — — Multifamily — — — All Other Residential — — — Consumer Motor Vehicle — — — All Other Consumer — — — With an allowance recorded: Commercial Commercial & Industrial 6,446 — — Farmland — — — Non Farm, Non Residential 6,568 — — Agriculture — — — All Other Commercial 704 — — Residential First Liens 149 — — Home Equity — — — Junior Liens — — — Multifamily — — — All Other Residential — — — Consumer Motor Vehicle — — — All Other Consumer — — — TOTAL $ 14,730 $ — $ — The tables below presents the recorded investment in non-performing loans. March 31, 2016 Loans Past Due Over 90 Day Still Troubled Debt (Dollar amounts in thousands) Accruing Accruing Nonaccrual Nonaccrual Commercial Commercial & Industrial $ — $ 5 $ 413 $ 2,525 Farmland — — — 108 Non Farm, Non Residential — 4 3,114 2,174 Agriculture — — — 403 All Other Commercial — — — 1,380 Residential First Liens 681 4,178 1,128 5,067 Home Equity 10 — — 308 Junior Liens 42 — — 210 Multifamily — — — — All Other Residential — — — 106 Consumer Motor Vehicle 174 121 2 185 All Other Consumer 5 125 442 782 TOTAL $ 912 $ 4,433 $ 5,099 $ 13,248 December 31, 2015 Loans Past Due Over 90 Day Still Troubled Debt (Dollar amounts in thousands) Accruing Accruing Nonaccrual Nonaccrual Commercial Commercial & Industrial $ — $ 5 $ 422 $ 3,187 Farmland — — — 219 Non Farm, Non Residential — 6 3,152 2,545 Agriculture — — — 378 All Other Commercial — — — 1,817 Residential First Liens 809 4,577 1,034 4,839 Home Equity 10 — — 320 Junior Liens 45 — — 211 Multifamily — — — — All Other Residential — — — 111 Consumer Motor Vehicle 148 — 2 213 All Other Consumer 4 — 400 794 TOTAL $ 1,016 $ 4,588 $ 5,010 $ 14,634 There were no loans covered by loss share agreements with the FDIC included in loans past due over 90 days still on accrual at March 31, 2016 and there were $37 thousand at December 31, 2015 . There were $255 thousand of covered loans included in non-accrual loans at March 31, 2016 and there were $242 thousand at December 31, 2015 . There were no covered loans at March 31, 2016 or December 31, 2015 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. March 31, 2016 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 $ 412 $ 483 $ 1,290 $ 2,185 $ 478,929 $ 481,114 Farmland 15 — — 15 110,157 110,172 Non Farm, Non Residential 193 6 288 487 209,322 209,809 Agriculture 194 207 310 711 125,988 126,699 All Other Commercial 219 19 24 262 125,282 125,544 Residential First Liens 3,346 168 1,768 5,282 283,242 288,524 Home Equity 27 — 109 136 35,779 35,915 Junior Liens 167 4 189 360 33,310 33,670 Multifamily 93 — — 93 71,140 71,233 All Other Residential 19 — — 19 8,740 8,759 Consumer Motor Vehicle 2,305 294 190 2,789 252,686 255,475 All Other Consumer 64 54 6 124 22,117 22,241 TOTAL $ 7,054 $ 1,235 $ 4,174 $ 12,463 $ 1,756,692 $ 1,769,155 December 31, 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 $ 326 $ 274 $ 1,405 $ 2,005 $ 476,984 $ 478,989 Farmland 135 — — 135 106,725 106,860 Non Farm, Non Residential 1,824 90 310 2,224 206,844 209,068 Agriculture 65 38 324 427 143,116 143,543 All Other Commercial 25 32 — 57 111,484 111,541 Residential First Liens 4,960 1,181 1,671 7,812 285,913 293,725 Home Equity 85 23 114 222 37,502 37,724 Junior Liens 179 29 177 385 32,876 33,261 Multifamily — — — — 70,735 70,735 All Other Residential 15 — — 15 10,195 10,210 Consumer Motor Vehicle 3,212 568 181 3,961 247,882 251,843 All Other Consumer 38 10 5 53 22,238 22,291 TOTAL $ 10,864 $ 2,245 $ 4,187 $ 17,296 $ 1,752,494 $ 1,769,790 During the three months ended March 31, 2016 and 2015 , the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDR's. 2016 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, $ 3,584 $ 5,593 $ 683 $ 9,860 Added — 80 88 168 Charged Off — (56 ) (20 ) (76 ) Payments (55 ) (332 ) (56 ) (443 ) March 31, $ 3,529 $ 5,285 $ 695 $ 9,509 2015 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, $ 8,955 $ 5,189 $ 614 $ 14,758 Added — 579 49 628 Charged Off — (62 ) (40 ) (102 ) Payments (120 ) (88 ) (48 ) (256 ) March 31, $ 8,835 $ 5,618 $ 575 $ 15,028 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 2016 or 2015 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 months ended March 31, 2016 and 2015 did not result in any material charge-offs or additional provision expense. The Corporation has allocated $ 24 thousand and $ 138 thousand of specific reserves to customers whose loan terms have been modified in troubled debt restructurings at both March 31, 2016 and 2015, respectively. The Corporation has not committed to lend additional amounts as of March 31, 2016 and 2015 to customers with outstanding loans that are classified as troubled debt restructurings. The charge-offs during the three months ended March 31, 2016 and 2015 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 March 31, 2016 and December 31, 2015 , and based on the most recent analysis performed, the risk category of loans by class of loans are as follows: March 31, 2016 (Dollar amounts in thousands) Pass Special Mention Substandard Doubtful Not Rated Total Commercial Commercial & Industrial $ 426,230 $ 17,236 $ 32,298 $ 581 $ 3,419 $ 479,764 Farmland 92,090 8,054 8,496 — 15 108,655 Non Farm, Non Residential 181,758 8,363 19,234 — — 209,355 Agriculture 102,904 10,015 11,787 26 186 124,918 All Other Commercial 112,941 262 9,560 101 2,043 124,907 Residential First Liens 96,680 3,405 9,171 619 177,738 287,613 Home Equity 10,445 360 911 10 24,136 35,862 Junior Liens 7,512 68 487 57 25,462 33,586 Multifamily 69,448 1,588 15 — 23 71,074 All Other Residential 449 — 23 — 8,266 8,738 Consumer Motor Vehicle 10,342 307 550 — 243,145 254,344 All Other Consumer 2,868 47 116 12 19,084 22,127 TOTAL $ 1,113,667 $ 49,705 $ 92,648 $ 1,406 $ 503,517 $ 1,760,943 December 31, 2015 (Dollar amounts in thousands) Pass Special Mention Substandard Doubtful Not Rated Total Commercial Commercial & Industrial $ 417,880 $ 20,422 $ 32,778 $ 757 $ 5,638 $ 477,475 Farmland 93,418 6,387 5,208 — 16 105,029 Non Farm, Non Residential 180,659 8,114 19,857 — — 208,630 Agriculture 121,244 11,964 8,419 27 170 141,824 All Other Commercial 95,850 2,649 10,887 101 1,535 111,022 Residential First Liens 96,146 4,594 8,598 699 182,791 292,828 Home Equity 11,701 387 669 10 24,895 37,662 Junior Liens 7,493 86 505 58 25,033 33,175 Multifamily 68,972 1,602 — — 23 70,597 All Other Residential 886 — 24 — 9,275 10,185 Consumer Motor Vehicle 10,287 356 534 — 239,543 250,720 All Other Consumer 2,930 77 125 14 19,030 22,176 TOTAL $ 1,107,466 $ 56,638 $ 87,604 $ 1,666 $ 507,949 $ 1,761,323 |