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, 2019 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 9,481 $ 1,323 $ 7,744 $ 1,702 $ 20,250 Provision for loan losses 163 (10 ) 1,691 (344 ) 1,500 Loans charged -off (864 ) (256 ) (2,082 ) — (3,202 ) Recoveries 226 266 759 — 1,251 Ending Balance $ 9,006 $ 1,323 $ 8,112 $ 1,358 $ 19,799 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 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, 2019 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 9,848 $ 1,313 $ 7,481 $ 1,794 $ 20,436 Provision for loan losses 5 145 3,486 (436 ) 3,200 Loans charged -off (1,523 ) (675 ) (5,019 ) — (7,217 ) Recoveries 676 540 2,164 — 3,380 Ending Balance $ 9,006 $ 1,323 $ 8,112 $ 1,358 $ 19,799 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 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, 2019 and December 31, 2018 . Allowance for Loan Losses September 30, 2019 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Individually evaluated for impairment $ 33 $ — $ — $ — $ 33 Collectively evaluated for impairment 8,973 1,323 8,112 1,358 19,766 Acquired with deteriorated credit quality — — — — — Ending Balance $ 9,006 $ 1,323 $ 8,112 $ 1,358 $ 19,799 Loans: September 30, 2019 (Dollar amounts in thousands) Commercial Residential Consumer Total Individually evaluated for impairment $ 3,415 $ 3,664 $ — $ 7,079 Collectively evaluated for impairment 1,577,863 705,586 375,303 2,658,752 Acquired with deteriorated credit quality 10,000 260 — 10,260 Ending Balance $ 1,591,278 $ 709,510 $ 375,303 $ 2,676,091 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 — — — — — Ending Balance $ 9,848 $ 1,313 $ 7,481 $ 1,794 $ 20,436 Loans December 31, 2018 (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 Ending Balance $ 1,173,823 $ 444,912 $ 342,473 $ 1,961,208 The following tables present loans individually evaluated for impairment by class of loans. September 30, 2019 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 $ 1,752 $ 1,222 $ — $ 813 $ — $ — Farmland 2,011 2,011 — 1,999 — — Non Farm, Non Residential — — — — — — Agriculture — — — — — — All Other Commercial 29 29 — 570 — — Residential First Liens 3,664 3,664 — 4,080 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — With an allowance recorded: Commercial Commercial & Industrial 153 153 33 1,349 — — Farmland — — — 105 — — Non Farm, Non Residential — — — — — — Agriculture — — — 173 — — All Other Commercial — — — — — — Residential First Liens — — — — — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — TOTAL $ 7,609 $ 7,079 $ 33 $ 9,089 $ — $ — December 31, 2018 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 $ 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 $ — $ — 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 $ 904 $ — $ — $ 813 $ — $ — Farmland 2,011 — — 1,999 — — Non Farm, Non Residential — — — — — — Agriculture — — — — — — All Other Commercial 29 — — 570 — — Residential First Liens 3,827 — — 4,080 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — With an allowance recorded: Commercial Commercial & Industrial 922 — — 1,349 — — Farmland — — — 105 — — Non Farm, Non Residential — — — — — — Agriculture — — — 173 — — All Other Commercial — — — — — — Residential First Liens — — — — — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — TOTAL $ 7,693 $ — $ — $ 9,089 $ — $ — 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 $ — $ — The tables below presents the recorded investment in non-performing loans. September 30, 2019 Loans Past Due Over 90 Days Still Troubled Debt Restructured Nonaccrual Excluding (Dollar amounts in thousands) Accruing Accruing Nonaccrual TDR Commercial Commercial & Industrial $ — $ — $ 17 $ 2,401 Farmland — — — 2,439 Non Farm, Non Residential — — — 455 Agriculture — — — 490 All Other Commercial — — — 81 Residential First Liens 586 3,016 445 3,101 Home Equity 7 — — 121 Junior Liens 12 48 9 179 Multifamily — — — — All Other Residential — — — 55 Consumer Motor Vehicle 180 — 15 183 All Other Consumer 5 271 327 347 TOTAL $ 790 $ 3,335 $ 813 $ 9,852 December 31, 2018 Loans Past Due Over 90 Days Still Troubled Debt Restructured Nonaccrual Excluding (Dollar amounts in thousands) Accruing Accruing Nonaccrual TDR 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 The loss share agreement with the FDIC has ended. There were $19 thousand included in loans past due over 90 days still on accrual at December 31, 2018 . There were $91 thousand of covered loans included in non-accrual loans at December 31, 2018 . There were no covered loans at December 31, 2018 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, 2019 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 $ 988 $ 116 $ 832 $ 1,936 $ 601,368 $ 603,304 Farmland — 5 2,100 2,105 136,959 139,064 Non Farm, Non Residential 60 — — 60 409,728 409,788 Agriculture 493 — — 493 159,886 160,379 All Other Commercial 75 47 29 151 278,592 278,743 Residential First Liens 1,386 1,443 1,364 4,193 410,637 414,830 Home Equity 326 25 11 362 69,537 69,899 Junior Liens 355 101 126 582 53,078 53,660 Multifamily — — — — 163,803 163,803 All Other Residential — — — — 7,318 7,318 Consumer Motor Vehicle 4,629 801 251 5,681 337,055 342,736 All Other Consumer 132 32 10 174 32,393 32,567 TOTAL $ 8,444 $ 2,570 $ 4,723 $ 15,737 $ 2,660,354 $ 2,676,091 December 31, 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 $ 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 During the three and nine months ended September 30, 2019 and 2018 , the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDRs. 2019 (Dollar amounts in thousands) Commercial Residential Consumer Total July 1, $ 127 $ 3,797 $ 617 $ 4,541 Added — — 73 73 Charged Off — — (35 ) (35 ) Payments (110 ) (300 ) (42 ) (452 ) September 30, $ 17 $ 3,497 $ 613 $ 4,127 2019 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, $ 145 $ 4,043 $ 618 $ 4,806 Added — 122 236 358 Charged Off — (16 ) (81 ) (97 ) Payments (128 ) (652 ) (160 ) (940 ) September 30, $ 17 $ 3,497 $ 613 $ 4,127 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 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 2019 or 2018 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 September 30, 2019 and 2018 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, 2019 and 2018 . The Corporation has not committed to lend additional amounts as of September 30, 2019 and 2018 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, 2019 and 2018 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, 2019 and December 31, 2018 , and based on the most recent analysis performed, the risk category of loans by class of loans are as follows: September 30, 2019 (Dollar amounts in thousands) Pass Special Mention Substandard Doubtful Not Rated Total Commercial Commercial & Industrial $ 550,274 $ 18,205 $ 26,901 $ 4 $ 6,228 $ 601,612 Farmland 121,097 7,472 8,354 — 10 136,933 Non Farm, Non Residential 390,707 5,469 12,577 — 622 409,375 Agriculture 125,250 4,239 27,654 — 568 157,711 All Other Commercial 269,763 4,123 155 — 3,330 277,371 Residential First Liens 193,626 1,142 4,540 — 214,651 413,959 Home Equity 18,375 — 452 — 51,008 69,835 Junior Liens 2,895 67 185 76 50,318 53,541 Multifamily 161,976 1,440 — — 21 163,437 All Other Residential — — 13 — 7,271 7,284 Consumer Motor Vehicle 3,224 — 470 — 337,630 341,324 All Other Consumer 3,691 — 33 — 28,699 32,423 TOTAL $ 1,840,878 $ 42,157 $ 81,334 $ 80 $ 700,356 $ 2,664,805 December 31, 2018 (Dollar amounts in thousands) Pass Special 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 |