ALLOWANCE FOR LOAN LOSSES | The following table presents the activity of the allowance for loan losses by portfolio segment for the years ended December 31, 2018 , 2017 and 2016 . Allowance for Loan Losses: December 31, 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 83 60 5,295 330 5,768 Loans charged -off (1,122 ) (841 ) (6,868 ) — (8,831 ) Recoveries 606 639 2,345 — 3,590 Ending Balance $ 9,848 $ 1,313 $ 7,481 $ 1,794 $ 20,436 Allowance for Loan Losses: December 31, 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 745 (179 ) 4,987 (258 ) 5,295 Loans charged -off (1,572 ) (761 ) (6,429 ) — (8,762 ) Recoveries 1,377 842 2,384 — 4,603 Ending Balance $ 10,281 $ 1,455 $ 6,709 $ 1,464 $ 19,909 Allowance for Loan Losses: December 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 (755 ) 54 3,964 37 3,300 Loans charged -off (2,659 ) (1,011 ) (5,279 ) — (8,949 ) Recoveries 1,663 676 2,137 — 4,476 Ending Balance $ 9,731 $ 1,553 $ 5,767 $ 1,722 $ 18,773 The following tables present the allocation of the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method at December 31, 2018 and 2017 : Allowance for Loan Losses: December 31, 2018 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Individually evaluated for impairment $ 737 $ — $ — $ — $ 737 Collectively evaluated for impairment 9,111 1,313 7,481 1,794 19,699 Acquired with deteriorated credit quality — — — — — BALANCE AT END OF YEAR $ 9,848 $ 1,313 $ 7,481 $ 1,794 $ 20,436 Loans (Dollar amounts in thousands) Commercial Residential Consumer Total Individually evaluated for impairment $ 6,101 $ 4,415 $ — $ 10,516 Collectively evaluated for impairment 1,166,227 440,497 342,473 1,949,197 Acquired with deteriorated credit quality 1,495 — — 1,495 BALANCE AT END OF YEAR $ 1,173,823 $ 444,912 $ 342,473 $ 1,961,208 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 — — — — — BALANCE AT END OF YEAR $ 10,281 $ 1,455 $ 6,709 $ 1,464 $ 19,909 Loans (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 BALANCE AT END OF YEAR $ 1,146,180 $ 437,407 $ 329,435 $ 1,913,022 The following tables present loans individually evaluated for impairment by class of loan. December 31, 2018 Allowance Cash Basis Unpaid for Loan Average Interest Interest Principal Recorded Losses Recorded Income Income Balance Investment Allocated Investment Recognized Recognized With no related allowance recorded: Commercial Commercial & Industrial $ 589 $ 589 $ — $ 698 $ — $ — Farmland 2,022 2,022 — 1,579 — — Non Farm, Non Residential — — — 1,443 — — Agriculture — — — 49 — — All Other Commercial 1,114 1,114 — 1,172 — — Residential First Liens 4,415 4,415 — 3,371 — — Home Equity — — — — — — Junior Liens — — — 23 — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — With an allowance recorded: Commercial Commercial & Industrial 1,819 1,819 593 688 — — Farmland 211 211 44 1,691 — — Non Farm, Non Residential — — — — — Agriculture 346 346 100 316 — — All Other Commercial — — — — — — Residential First Liens — — — 88 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — TOTAL $ 10,516 $ 10,516 $ 737 $ 11,118 $ — $ — December 31, 2017 Allowance Cash Basis Unpaid for Loan Average Interest Interest Principal Recorded Losses Recorded Income Income 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 $ — $ — December 31, 2016 Cash Basis Average Interest Interest Recorded Income Income Investment Recognized Recognized With no related allowance recorded: Commercial Commercial & Industrial $ 981 $ — $ — Farmland 770 — — Non Farm, Non Residential 3,096 — — Agriculture 351 — — All Other Commercial 1,477 — — Residential First Liens 27 — — Home Equity — — — Junior Liens — — — Multifamily — — — All Other Residential — — — Consumer Motor Vehicle — — — All Other Consumer — — — With an allowance recorded: Commercial Commercial & Industrial 819 — — Farmland — — — Non Farm, Non Residential 1,016 — Agriculture 114 — — All Other Commercial 45 — — Residential First Liens 647 — — Home Equity — — — Junior Liens — — — Multifamily — — — All Other Residential — — — Consumer Motor Vehicle — — — All Other Consumer — — — TOTAL $ 9,343 $ — $ — The following tables present the recorded investment in nonperforming loans by class of loans. December 31, 2018 Loans Past Troubled Debt Due Over 90 Day Still Restructured (Dollar amounts in thousands) Accruing Accrual Non-accrual Non-accrual Commercial Commercial & Industrial $ — $ 1 $ 144 $ 2,902 Farmland — — — 2,391 Non Farm, Non Residential — — — 81 Agriculture — — — 355 All Other Commercial — — — 1,122 Residential First Liens 581 3,327 531 3,393 Home Equity 41 — — 75 Junior Liens 53 55 — 86 Multifamily — — — — All Other Residential — — — 64 Consumer Motor Vehicle 177 1 — 125 All Other Consumer — 268 349 380 TOTAL $ 852 $ 3,652 $ 1,024 $ 10,974 December 31, 2017 Loans Past Troubled Debt Due Over 90 Day Still Restructured (Dollar amounts in thousands) Accruing Accrual Non-accrual Non-accrual 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 Covered loans included in loans past due over 90 days still on accrual are $19 thousand at December 31, 2018 and $88 thousand at December 31, 2017 . Covered loans included in non-accrual loans are $91 thousand at December 31, 2018 and $62 thousand at December 31, 2017 . No covered loans are deemed impaired at December 31, 2018 and 2017 . Non-performing loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. During the years ending December 31, 2018 , 2017 , and 2016 the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDR's. 2018 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, $ 2,709 $ 3,611 $ 714 $ 7,034 Added — 984 295 1,279 Charged Off — (16 ) (137 ) (153 ) Payments (2,564 ) (536 ) (254 ) (3,354 ) December 31, $ 145 $ 4,043 $ 618 $ 4,806 2017 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, $ 3,386 $ 4,447 $ 732 $ 8,565 Added — 227 386 613 Charged Off — (289 ) (141 ) (430 ) Payments (677 ) (774 ) (263 ) (1,714 ) December 31, $ 2,709 $ 3,611 $ 714 $ 7,034 2016 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, $ 3,584 $ 5,593 $ 683 $ 9,860 Added — 123 369 492 Charged Off — (321 ) (70 ) (391 ) Payments (198 ) (948 ) (250 ) (1,396 ) December 31, $ 3,386 $ 4,447 $ 732 $ 8,565 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 , 2017 or 2016 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 . During the years ended December 31, 2018 , 2017 and 2016 the Corporation modified 53 , 43 , and 42 loans respectively as troubled debt restructurings. All of the loans modified were smaller balance residential and consumer loans. There were no loans that were charged off within 12 months of the modification for 2018 , 2017 , or 2016 . The Corporation had no allocation of specific reserves to customers whose loan terms have been modified in troubled debt restructurings at December 31, 2018 , 2017 , and 2016 . The Corporation has not committed to lend additional amounts as of December 31, 2018 and 2017 to customers with outstanding loans that are classified as troubled debt restructurings. The following tables present the aging of the recorded investment in loans by past due category and class of loans. Greater December 31, 2018 30-59 Days 60-89 Days than 90 days Total (Dollar amounts in thousands) Past Due Past Due Past Due Past Due Current Total Commercial Commercial & Industrial $ 1,017 $ 420 $ 345 $ 1,782 $ 518,239 $ 520,021 Farmland 515 8 2,136 2,659 104,981 107,640 Non Farm, Non Residential — — 57 57 188,706 188,763 Agriculture 41 — 347 388 148,345 148,733 All Other Commercial 30 3 — 33 208,633 208,666 Residential First Liens 3,365 429 1,473 5,267 231,684 236,951 Home Equity 155 8 110 273 39,378 39,651 Junior Liens 132 225 63 420 49,111 49,531 Multifamily — — — — 109,609 109,609 All Other Residential — 9 15 24 9,146 9,170 Consumer Motor Vehicle 4,766 609 177 5,552 309,238 314,790 All Other Consumer 208 7 12 227 27,456 27,683 TOTAL $ 10,229 $ 1,718 $ 4,735 $ 16,682 $ 1,944,526 $ 1,961,208 Greater December 31, 2017 30-59 Days 60-89 Days 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 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 December 31, 2018 and 2017 , and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: December 31, 2018 Special (Dollar amounts in thousands) Pass Mention Substandard Doubtful Not Rated Total Commercial Commercial & Industrial $ 472,008 $ 20,600 $ 18,374 $ — $ 7,428 $ 518,410 Farmland 90,367 7,587 7,783 — 19 105,756 Non Farm, Non Residential 170,757 5,442 10,439 — 1,695 188,333 Agriculture 118,952 10,010 16,637 — 457 146,056 All Other Commercial 198,302 43 6,777 — 2,675 207,797 Residential First Liens 43,915 1,043 3,504 — 187,685 236,147 Home Equity 963 — 148 — 38,471 39,582 Junior Liens 1,983 74 224 76 47,060 49,417 Multifamily 109,361 — — — 17 109,378 All Other Residential — — 15 — 9,131 9,146 Consumer Motor Vehicle — — 627 — 312,863 313,490 All Other Consumer — — 34 — 27,517 27,551 TOTAL $ 1,206,608 $ 44,799 $ 64,562 $ 76 $ 635,018 $ 1,951,063 In February 2019, based on the receipt and analysis of current financial statements from a borrower, loans totaling $9 million were downgraded from special mention to substandard. The impact to the allowance for loan losses related to this downgrade was not material. December 31, 2017 Special (Dollar amounts in thousands) Pass 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 |