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, 2018 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 9,498 $ 1,382 $ 7,131 $ 2,060 $ 20,071 Provision for loan losses (106 ) (44 ) 1,593 27 1,470 Loans charged -off (409 ) (158 ) (1,781 ) — (2,348 ) Recoveries 354 160 594 — 1,108 Ending Balance $ 9,337 $ 1,340 $ 7,537 $ 2,087 $ 20,301 Allowance for Loan Losses: September 30, 2017 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 10,223 $ 1,514 $ 6,218 $ 1,725 $ 19,680 Provision for loan losses (227 ) 14 1,415 (17 ) 1,185 Loans charged -off (281 ) (100 ) (1,583 ) — (1,964 ) Recoveries 222 91 588 — 901 Ending Balance $ 9,937 $ 1,519 $ 6,638 $ 1,708 $ 19,802 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, 2018 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 10,281 $ 1,455 $ 6,709 $ 1,464 $ 19,909 Provision for loan losses (443 ) 56 4,062 623 4,298 Loans charged -off (1,053 ) (632 ) (5,007 ) — (6,692 ) Recoveries 552 461 1,773 — 2,786 Ending Balance $ 9,337 $ 1,340 $ 7,537 $ 2,087 $ 20,301 Allowance for Loan Losses: September 30, 2017 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 9,731 $ 1,553 $ 5,767 $ 1,722 $ 18,773 Provision for loan losses 176 (166 ) 3,825 (14 ) 3,821 Loans charged -off (1,059 ) (564 ) (4,705 ) — (6,328 ) Recoveries 1,089 696 1,751 — 3,536 Ending Balance $ 9,937 $ 1,519 $ 6,638 $ 1,708 $ 19,802 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, 2018 and December 31, 2017 . Allowance for Loan Losses September 30, 2018 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Individually evaluated for impairment $ 34 $ — $ — $ — $ 34 Collectively evaluated for impairment 9,303 1,340 7,537 2,087 20,267 Acquired with deteriorated credit quality — — — — — Ending Balance $ 9,337 $ 1,340 $ 7,537 $ 2,087 $ 20,301 Loans: September 30, 2018 (Dollar amounts in thousands) Commercial Residential Consumer Total Individually evaluated for impairment $ 5,063 $ 4,372 $ — $ 9,435 Collectively evaluated for impairment 1,151,707 440,335 346,583 1,938,625 Acquired with deteriorated credit quality 1,527 — — 1,527 Ending Balance $ 1,158,297 $ 444,707 $ 346,583 $ 1,949,587 Allowance for Loan Losses: December 31, 2017 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Individually evaluated for impairment 619 6 — — 625 Collectively evaluated for impairment 9,662 1,449 6,709 1,464 19,284 Acquired with deteriorated credit quality — — — — — Ending Balance $ 10,281 $ 1,455 $ 6,709 $ 1,464 $ 19,909 Loans December 31, 2017 (Dollar amounts in thousands) Commercial Residential Consumer Total Individually evaluated for impairment 9,619 463 — 10,082 Collectively evaluated for impairment 1,134,701 436,944 329,435 1,901,080 Acquired with deteriorated credit quality 1,860 — — 1,860 Ending Balance $ 1,146,180 $ 437,407 $ 329,435 $ 1,913,022 The following tables present loans individually evaluated for impairment by class of loans. September 30, 2018 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 $ 652 $ 652 $ — $ 725 $ — $ — Farmland 3,083 3,083 — 1,468 — — Non Farm, Non Residential — — — 1,803 — — Agriculture 212 12 — 61 — — All Other Commercial 1,142 1,142 — 1,187 — — Residential First Liens 4,372 4,372 — 3,110 — — Home Equity — — — — — — Junior Liens — — — 29 — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — With an allowance recorded: Commercial Commercial & Industrial 174 174 34 405 — — Farmland — — — 2,061 — — Non Farm, Non Residential — — — — — — Agriculture — — — 309 — — All Other Commercial — — — — — — Residential First Liens — — — 111 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — TOTAL $ 9,635 $ 9,435 $ 34 $ 11,269 $ — $ — December 31, 2017 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 $ 802 $ 802 $ — $ 971 $ — $ — Farmland 930 930 — 1,265 — — Non Farm, Non Residential 2,461 2,461 — 2,781 — — Agriculture 123 123 — 239 — — All Other Commercial 1,238 1,238 — 1,308 — — Residential First Liens 21 21 — 23 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — With an allowance recorded: Commercial Commercial & Industrial 493 493 146 514 — — Farmland 3,035 3,035 268 669 — — Non Farm, Non Residential — — — 131 — Agriculture 738 537 205 279 — — All Other Commercial — — — — — — Residential First Liens 442 442 6 483 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — TOTAL $ 10,283 $ 10,082 $ 625 $ 8,663 $ — $ — 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 $ 662 $ — $ — $ 725 $ — $ — Farmland 2,007 — — 1,468 — — Non Farm, Non Residential 1,165 — — 1,803 — — Agriculture 6 — — 61 — — All Other Commercial 1,156 — — 1,187 — — Residential First Liens 4,188 — — 3,110 — — Home Equity — — — — — — Junior Liens 39 — — 29 — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — With an allowance recorded: Commercial Commercial & Industrial 323 — — 405 — — Farmland 1,081 — — 2,061 — — Non Farm, Non Residential — — — — — — Agriculture 80 — — 309 — — All Other Commercial — — — — — — Residential First Liens — — — 111 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — TOTAL $ 10,707 $ — $ — $ 11,269 $ — $ — 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 $ 891 $ — $ — $ 1,013 $ — $ — Farmland 2,285 — — 1,349 — — Non Farm, Non Residential 3,218 — — 2,861 — — Agriculture 107 — — 268 — — All Other Commercial 1,297 — — 1,325 — — Residential First Liens 23 — — 24 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — With an allowance recorded: Commercial Commercial & Industrial 508 — — 519 — — Farmland 156 — — 78 — — Non Farm, Non Residential — — — 164 — — Agriculture 430 — — 215 — — All Other Commercial — — — — — — Residential First Liens 473 — — 493 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — TOTAL $ 9,388 $ — $ — $ 8,309 $ — $ — The tables below presents the recorded investment in non-performing loans. September 30, 2018 Loans Past Due Over 90 Day Still Troubled Debt Restructured Nonaccrual Excluding (Dollar amounts in thousands) Accruing Accruing Nonaccrual TDR Commercial Commercial & Industrial $ 41 $ 1 $ 202 $ 1,096 Farmland — — — 3,258 Non Farm, Non Residential — — — 88 Agriculture — — — 27 All Other Commercial — — — 1,147 Residential First Liens 1,063 3,343 564 3,518 Home Equity 12 — — 75 Junior Liens 18 57 — 68 Multifamily — — — — All Other Residential — — — 66 Consumer Motor Vehicle 259 2 — 179 All Other Consumer — 187 475 513 TOTAL $ 1,393 $ 3,590 $ 1,241 $ 10,035 December 31, 2017 Loans Past Due Over 90 Day Still Troubled Debt Restructured Nonaccrual Excluding (Dollar amounts in thousands) Accruing Accruing Nonaccrual TDR Commercial Commercial & Industrial $ 41 $ 2 $ 212 $ 1,679 Farmland 19 — — 4,141 Non Farm, Non Residential — 56 2,440 172 Agriculture — — — 707 All Other Commercial — — — 1,236 Residential First Liens 1,011 3,105 575 3,972 Home Equity 8 — — 249 Junior Liens 137 — — 134 Multifamily — — — — All Other Residential — — — 90 Consumer Motor Vehicle 268 9 — 242 All Other Consumer — 177 527 623 TOTAL $ 1,484 $ 3,349 $ 3,754 $ 13,245 There were $131 thousand of loans covered by loss share agreements with the FDIC included in loans past due over 90 days still on accrual at September 30, 2018 and there were $88 thousand at December 31, 2017 . There were $85 thousand of covered loans included in non-accrual loans at September 30, 2018 and there were $62 thousand at December 31, 2017 . There were no covered loans at September 30, 2018 or December 31, 2017 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, 2018 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 $ 765 $ 487 $ 481 $ 1,733 $ 507,758 $ 509,491 Farmland — 8 3,198 3,206 103,902 107,108 Non Farm, Non Residential 20 31 26 77 188,673 188,750 Agriculture — — 11 11 142,700 142,711 All Other Commercial 4 — — 4 210,233 210,237 Residential First Liens 528 446 1,939 2,913 236,246 239,159 Home Equity 203 80 81 364 37,449 37,813 Junior Liens 138 53 18 209 47,866 48,075 Multifamily — — — — 107,179 107,179 All Other Residential — — — — 12,481 12,481 Consumer Motor Vehicle 5,092 861 299 6,252 313,132 319,384 All Other Consumer 106 10 3 119 27,080 27,199 TOTAL $ 6,856 $ 1,976 $ 6,056 $ 14,888 $ 1,934,699 $ 1,949,587 December 31, 2017 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 $ 372 $ 80 $ 640 $ 1,092 $ 474,709 $ 475,801 Farmland 341 — 3,671 4,012 104,457 108,469 Non Farm, Non Residential 141 — — 141 200,804 200,945 Agriculture 141 — 561 702 152,388 153,090 All Other Commercial — — — — 207,875 207,875 Residential First Liens 5,467 1,317 1,434 8,218 247,029 255,247 Home Equity 310 46 8 364 35,752 36,116 Junior Liens 274 106 194 574 41,688 42,262 Multifamily — — — — 90,141 90,141 All Other Residential 300 — 12 312 13,329 13,641 Consumer Motor Vehicle 4,770 697 294 5,761 298,211 303,972 All Other Consumer 107 22 — 129 25,334 25,463 TOTAL $ 12,223 $ 2,268 $ 6,814 $ 21,305 $ 1,891,717 $ 1,913,022 During the three and nine months ended September 30, 2018 and 2017 , the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDRs. 2018 (Dollar amounts in thousands) Commercial Residential Consumer Total July 1, $ 2,577 $ 3,607 $ 635 $ 6,819 Added — 538 94 632 Charged Off — — (7 ) (7 ) Payments (2,374 ) (165 ) (58 ) (2,597 ) September 30, $ 203 $ 3,980 $ 664 $ 4,847 2018 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, $ 2,709 $ 3,611 $ 714 $ 7,034 Added — 751 237 988 Charged Off — (16 ) (83 ) (99 ) Payments (2,506 ) (366 ) (204 ) (3,076 ) September 30, $ 203 $ 3,980 $ 664 $ 4,847 2017 (Dollar amounts in thousands) Commercial Residential Consumer Total July 1, 3,061 4,198 725 7,984 Added — — 42 42 Charged Off — (155 ) (17 ) (172 ) Payments (153 ) (222 ) (55 ) (430 ) September 30, 2,908 3,821 695 7,424 2017 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, 3,386 4,447 732 8,565 Added — 227 251 478 Charged Off — (195 ) (88 ) (283 ) Payments (478 ) (658 ) (200 ) (1,336 ) September 30, 2,908 3,821 695 7,424 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 2018 or 2017 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, 2018 and 2017 did not result in any material charge-offs or additional provision expense. The Corporation has no allocations of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of September 30, 2018 and 2017 . The Corporation has not committed to lend additional amounts as of September 30, 2018 and 2017 to customers with outstanding loans that are classified as troubled debt restructurings. None of the charge-offs during the three and nine months ended September 30, 2018 and 2017 were of restructurings that had occurred 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 those with an outstanding balance less than $100 thousand or are included in groups of homogeneous loans. As of September 30, 2018 and December 31, 2017 , and based on the most recent analysis performed, the risk category of loans by class of loans are as follows: September 30, 2018 (Dollar amounts in thousands) Pass Special Mention Substandard Doubtful Not Rated Total Commercial Commercial & Industrial $ 462,286 $ 21,079 $ 16,145 $ — $ 8,327 $ 507,837 Farmland 88,960 7,655 8,427 — 20 105,062 Non Farm, Non Residential 172,165 5,620 10,531 — — 188,316 Agriculture 113,536 9,823 16,405 — 456 140,220 All Other Commercial 200,398 43 6,923 — 1,737 209,101 Residential First Liens 44,443 971 3,935 — 188,857 238,206 Home Equity 673 — 120 — 36,952 37,745 Junior Liens 2,041 76 171 76 45,598 47,962 Multifamily 106,891 — — — 19 106,910 All Other Residential — — 15 — 12,426 12,441 Consumer Motor Vehicle — — 674 — 317,387 318,061 All Other Consumer — — 43 — 27,028 27,071 TOTAL $ 1,191,393 $ 45,267 $ 63,389 $ 76 $ 638,807 $ 1,938,932 December 31, 2017 (Dollar amounts in thousands) Pass Special Mention Substandard Doubtful Not Rated Total Commercial Commercial & Industrial $ 430,015 $ 19,889 $ 18,611 $ 38 $ 5,947 $ 474,500 Farmland 88,338 10,782 7,466 — 10 106,596 Non Farm, Non Residential 179,181 7,689 13,632 — — 200,502 Agriculture 111,724 17,482 21,388 — 342 150,936 All Other Commercial 194,170 2,723 7,459 — 2,604 206,956 Residential First Liens 45,320 750 3,980 5 204,329 254,384 Home Equity 319 — 64 — 35,653 36,036 Junior Liens 1,882 76 342 100 39,755 42,155 Multifamily 89,936 — — — 36 89,972 All Other Residential — — 67 — 13,529 13,596 Consumer Motor Vehicle — — 731 — 301,900 302,631 All Other Consumer — — 44 — 25,301 25,345 TOTAL $ 1,140,885 $ 59,391 $ 73,784 $ 143 $ 629,406 $ 1,903,609 |