Allowance for Loan Losses | The following table presents the activity of the allowance for loan losses by portfolio segment for the three months ended June 30. Allowance for Loan Losses: June 30, 2016 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 11,168 $ 1,769 $ 5,106 $ 1,883 $ 19,926 Provision for loan losses (816 ) (22 ) 749 524 435 Loans charged -off (555 ) (232 ) (1,055 ) — (1,842 ) Recoveries 447 80 458 — 985 Ending Balance $ 10,244 $ 1,595 $ 5,258 $ 2,407 $ 19,504 Allowance for Loan Losses: June 30, 2015 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 10,818 $ 1,622 $ 4,494 $ 2,417 $ 19,351 Provision for loan losses 160 277 638 75 1,150 Loans charged -off (272 ) (181 ) (1,026 ) — (1,479 ) Recoveries 225 42 572 — 839 Ending Balance $ 10,931 $ 1,760 $ 4,678 $ 2,492 $ 19,861 The following table presents the activity of the allowance for loan losses by portfolio segment for the six months ended June 30. Allowance for Loan Losses: June 30, 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 (1,091 ) 103 1,536 722 1,270 Loans charged -off (822 ) (471 ) (2,189 ) — (3,482 ) Recoveries 675 129 966 — 1,770 Ending Balance $ 10,244 $ 1,595 $ 5,258 $ 2,407 $ 19,504 Allowance for Loan Losses: June 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 167 653 1,468 312 2,600 Loans charged -off (608 ) (406 ) (2,288 ) — (3,302 ) Recoveries 457 139 1,128 — 1,724 Ending Balance $ 10,931 $ 1,760 $ 4,678 $ 2,492 $ 19,861 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 June 30, 2016 and December 31, 2015 . Allowance for Loan Losses June 30, 2016 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Individually evaluated for impairment $ 786 $ 132 $ — $ — $ 918 Collectively evaluated for impairment 9,307 1,463 5,258 2,407 18,435 Acquired with deteriorated credit quality 151 — — — 151 Ending Balance $ 10,244 $ 1,595 $ 5,258 $ 2,407 $ 19,504 Loans: June 30, 2016 (Dollar amounts in thousands) Commercial Residential Consumer Total Individually evaluated for impairment $ 8,967 $ 635 $ — $ 9,602 Collectively evaluated for impairment 1,074,936 429,103 288,553 1,792,592 Acquired with deteriorated credit quality 3,878 1,502 — 5,380 Ending Balance $ 1,087,781 $ 431,240 $ 288,553 $ 1,807,574 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. June 30, 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 $ 529 $ 236 $ — $ 841 $ — $ — Farmland 1,465 1,465 — 488 — — Non Farm, Non Residential 3,084 3,084 — 3,147 — — Agriculture 635 635 — 212 — — All Other Commercial 1,424 1,424 — 1,540 — — Residential First Liens 27 27 — 28 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — With an allowance recorded: Commercial Commercial & Industrial 994 994 88 864 — — Farmland — — — — — — Non Farm, Non Residential 1,129 1,129 698 1,240 — — Agriculture — — — — — — All Other Commercial — — — 75 — — Residential First Liens 608 608 132 722 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — TOTAL $ 9,895 $ 9,602 $ 918 $ 9,157 $ — $ — 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 Six 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 & Industrial $ 650 $ — $ — $ 841 $ — $ — Farmland 733 — — 488 — — Non Farm, Non Residential 3,119 — — 3,147 — — Agriculture 318 — — 212 — — All Other Commercial 1,431 — — 1,540 — — Residential First Liens 28 — — 28 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — With an allowance recorded: Commercial Commercial & Industrial 797 — — 864 — — Farmland — — — — — — Non Farm, Non Residential 1,153 — — 1,240 — — Agriculture — — — — — — All Other Commercial — — — 75 — — Residential First Liens 646 — — 722 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — TOTAL $ 8,875 $ — $ — $ 9,157 $ — $ — Three Months Ended Six 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 $ 2,779 $ — $ — $ 2,161 $ — $ — Farmland — — — — — — Non Farm, Non Residential 1,978 — — 1,318 — — Agriculture — — — — — — All Other Commercial 1,025 — — 780 — — Residential First Liens 16 — — 10 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — With an allowance recorded: Commercial Commercial & Industrial 4,413 — — 4,900 — — Farmland — — — — — — Non Farm, Non Residential 4,417 — — 5,162 — — Agriculture — — — — — — All Other Commercial 566 — — 653 — — Residential First Liens 246 — — 175 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — TOTAL $ 15,440 $ — $ — $ 15,159 $ — $ — The tables below presents the recorded investment in non-performing loans. June 30, 2016 Loans Past Due Over 90 Day Still Troubled Debt (Dollar amounts in thousands) Accruing Accruing Nonaccrual Nonaccrual Commercial Commercial & Industrial $ — $ 4 $ 403 $ 1,961 Farmland 48 — — 1,520 Non Farm, Non Residential — 5 3,041 1,828 Agriculture — — — 1,107 All Other Commercial — — — 1,329 Residential First Liens 744 3,894 1,157 5,339 Home Equity 99 — — 207 Junior Liens 86 — — 206 Multifamily — — — — All Other Residential — — — 102 Consumer Motor Vehicle 133 84 1 171 All Other Consumer — 109 470 756 TOTAL $ 1,110 $ 4,096 $ 5,072 $ 14,526 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 $178 thousand of loans covered by loss share agreements with the FDIC included in loans past due over 90 days still on accrual at June 30, 2016 and there were $37 thousand at December 31, 2015 . There were $237 thousand of covered loans included in non-accrual loans at June 30, 2016 and there were $242 thousand at December 31, 2015 . There were no covered loans at June 30, 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. June 30, 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 $ 615 $ 112 $ 1,027 $ 1,754 $ 484,840 $ 486,594 Farmland 141 1,005 48 1,194 114,079 115,273 Non Farm, Non Residential 12 450 130 592 203,394 203,986 Agriculture 582 — 381 963 139,490 140,453 All Other Commercial 9 — — 9 141,466 141,475 Residential First Liens 981 520 1,990 3,491 277,145 280,636 Home Equity 64 32 115 211 35,745 35,956 Junior Liens 261 23 230 514 34,479 34,993 Multifamily — — — — 71,883 71,883 All Other Residential — — — — 7,772 7,772 Consumer Motor Vehicle 2,822 452 229 3,503 261,607 265,110 All Other Consumer 102 98 1 201 23,242 23,443 TOTAL $ 5,589 $ 2,692 $ 4,151 $ 12,432 $ 1,795,142 $ 1,807,574 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 and six months ended June 30, 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 April 1, $ 3,529 $ 5,285 $ 695 $ 9,509 Added — 43 62 105 Charged Off — (125 ) (6 ) (131 ) Payments (76 ) (170 ) (82 ) (328 ) June 30, $ 3,453 $ 5,033 $ 669 $ 9,155 2016 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, 3,584 5,593 683 9,860 Added — 123 150 273 Charged Off — (181 ) (26 ) (207 ) Payments (131 ) (502 ) (138 ) (771 ) June 30, 3,453 5,033 669 9,155 2015 (Dollar amounts in thousands) Commercial Residential Consumer Total April 1, 8,835 5,618 614 15,067 Added — 73 189 262 Charged Off — — (40 ) (40 ) Payments (130 ) (102 ) (106 ) (338 ) June 30, 8,705 5,589 657 14,951 2015 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, 8,955 5,189 614 14,758 Added — 652 189 841 Charged Off — (62 ) (40 ) (102 ) Payments (250 ) (190 ) (106 ) (546 ) June 30, 8,705 5,589 657 14,951 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 and six months ended June 30, 2016 and 2015 did not result in any material charge-offs or additional provision expense. The Corporation has allocated $ 7 thousand and $ 47 thousand of specific reserves to customers whose loan terms have been modified in troubled debt restructurings at both June 30, 2016 and 2015, respectively. The Corporation has not committed to lend additional amounts as of June 30, 2016 and 2015 to customers with outstanding loans that are classified as troubled debt restructurings. The charge-offs during the three months ended June 30, 2016 and 2015 were not of any restructurings that had taken place in the previous 12 months. The impact on the provision for new troubled debt restructurings was immaterial. 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 June 30, 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: June 30, 2016 (Dollar amounts in thousands) Pass Special Mention Substandard Doubtful Not Rated Total Commercial Commercial & Industrial $ 433,878 $ 19,378 $ 27,153 $ 470 $ 4,471 $ 485,350 Farmland 93,903 13,172 6,602 — 14 113,691 Non Farm, Non Residential 176,105 9,401 18,006 — — 203,512 Agriculture 111,776 16,887 10,242 24 180 139,109 All Other Commercial 128,842 121 10,995 76 765 140,799 Residential First Liens 93,910 3,669 7,607 603 173,986 279,775 Home Equity 10,125 213 912 9 24,646 35,905 Junior Liens 7,690 241 542 27 26,407 34,907 Multifamily 70,130 1,574 15 — 24 71,743 All Other Residential 522 — 23 — 7,207 7,752 Consumer Motor Vehicle 10,563 274 517 10 252,612 263,976 All Other Consumer 2,799 45 103 14 20,371 23,332 TOTAL $ 1,140,243 $ 64,975 $ 82,717 $ 1,233 $ 510,683 $ 1,799,851 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 |