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, 2020 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 8,945 $ 1,302 $ 8,304 $ 1,392 $ 19,943 Provision for loan losses 520 251 1,780 139 2,690 Loans charged -off (533 ) (257 ) (2,114 ) — (2,904 ) Recoveries 391 156 787 — 1,334 Ending Balance $ 9,323 $ 1,452 $ 8,757 $ 1,531 $ 21,063 Allowance for Loan Losses: March 31, 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 (640 ) 296 941 873 1,470 Loans charged -off (256 ) (302 ) (1,551 ) — (2,109 ) Recoveries 287 185 691 — 1,163 Ending Balance $ 9,239 $ 1,492 $ 7,562 $ 2,667 $ 20,960 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, 2020 and December 31, 2019 . Allowance for Loan Losses March 31, 2020 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Individually evaluated for impairment $ 42 $ — $ — $ — $ 42 Collectively evaluated for impairment 9,281 1,452 8,757 1,531 21,021 Acquired with deteriorated credit quality — — — — — Ending Balance $ 9,323 $ 1,452 $ 8,757 $ 1,531 $ 21,063 Loans: March 31, 2020 (Dollar amounts in thousands) Commercial Residential Consumer Total Individually evaluated for impairment $ 6,152 $ 3,579 $ — $ 9,731 Collectively evaluated for impairment 1,563,334 661,353 389,649 2,614,336 Acquired with deteriorated credit quality 6,549 — — 6,549 Ending Balance $ 1,576,035 $ 664,932 $ 389,649 $ 2,630,616 Allowance for Loan Losses: December 31, 2019 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Individually evaluated for impairment 48 — — — 48 Collectively evaluated for impairment 8,897 1,302 8,304 1,392 19,895 Acquired with deteriorated credit quality — — — — — Ending Balance $ 8,945 $ 1,302 $ 8,304 $ 1,392 $ 19,943 Loans December 31, 2019 (Dollar amounts in thousands) Commercial Residential Consumer Total Individually evaluated for impairment 3,161 3,952 — 7,113 Collectively evaluated for impairment 1,584,169 680,069 387,655 2,651,893 Acquired with deteriorated credit quality 7,436 — — 7,436 Ending Balance $ 1,594,766 $ 684,021 $ 387,655 $ 2,666,442 The following tables present loans individually evaluated for impairment by class of loans. March 31, 2020 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 $ 1,679 $ 1,149 $ — $ 1,069 $ — $ — Farmland 1,324 1,324 — 1,661 — — Non Farm, Non Residential 3,512 3,512 — 1,756 — — Agriculture — — — — — — All Other Commercial 26 26 — 27 — — Residential First Liens 3,579 3,579 — 3,766 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — With an allowance recorded: Commercial Commercial & Industrial 141 141 42 145 — — Farmland — — — — — — Non Farm, Non Residential — — — — — — Agriculture — — — — — — All Other Commercial — — — — — — Residential First Liens — — — — — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — TOTAL $ 10,261 $ 9,731 $ 42 $ 8,424 $ — $ — December 31, 2019 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 $ 1,519 $ 989 $ — $ 848 $ — $ — Farmland 1,997 1,997 — 1,999 — — Non Farm, Non Residential — — — — — — Agriculture — — — — — — All Other Commercial 27 27 — 461 — — Residential First Liens 3,952 3,952 — 4,055 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — With an allowance recorded: Commercial Commercial & Industrial 148 148 48 1,108 — — Farmland — — — 84 — — Non Farm, Non Residential — — — — — Agriculture — — — 138 — — All Other Commercial — — — — — — Residential First Liens — — — — — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — TOTAL $ 7,643 $ 7,113 $ 48 $ 8,693 $ — $ — Three Months Ended Average Interest Cash Basis (Dollar amounts in thousands) Investment Recognized Recognized With no related allowance recorded: Commercial Commercial & Industrial $ 1,069 $ — $ — Farmland 1,661 — — Non Farm, Non Residential 1,756 — — Agriculture — — — All Other Commercial 27 — — Residential First Liens 3,766 — — Home Equity — — — Junior Liens — — — Multifamily — — — All Other Residential — — — Consumer Motor Vehicle — — — All Other Consumer — — — With an allowance recorded: Commercial Commercial & Industrial 145 — — Farmland — — — Non Farm, Non Residential — — — Agriculture — — — All Other Commercial — — — Residential First Liens — — — Home Equity — — — Junior Liens — — — Multifamily — — — All Other Residential — — — Consumer Motor Vehicle — — — All Other Consumer — — — TOTAL $ 8,424 $ — $ — Three Months Ended Average Interest Cash Basis (Dollar amounts in thousands) Investment Recognized Recognized With no related allowance recorded: Commercial Commercial & Industrial $ 788 $ — $ — Farmland 930 — — Non Farm, Non Residential 2,442 — — Agriculture 116 — — All Other Commercial 1,218 — — Residential First Liens 2,032 — — Home Equity — — — Junior Liens 18 — — Multifamily — — — All Other Residential — — — Consumer Motor Vehicle — — — All Other Consumer — — — With an allowance recorded: Commercial Commercial & Industrial 488 — — Farmland 3,041 — — Non Farm, Non Residential — — — Agriculture 537 — — All Other Commercial — — — Residential First Liens 221 — — Home Equity — — — Junior Liens — — — Multifamily — — — All Other Residential — — — Consumer Motor Vehicle — — — All Other Consumer — — — TOTAL $ 11,831 $ — $ — The tables below presents the recorded investment in non-performing loans. March 31, 2020 Loans Past Due Over 90 Days Still Troubled Debt Restructured Nonaccrual Excluding (Dollar amounts in thousands) Accruing Accruing Nonaccrual TDR Commercial Commercial & Industrial $ 21 $ — $ 4 $ 2,882 Farmland 6 — — 1,534 Non Farm, Non Residential — — — 3,980 Agriculture — — — 3 All Other Commercial — — — 62 Residential First Liens 1,138 2,960 401 2,604 Home Equity 136 — — 43 Junior Liens 21 83 8 99 Multifamily — — — — All Other Residential 41 — — 48 Consumer Motor Vehicle 115 — 14 233 All Other Consumer 12 190 510 523 TOTAL $ 1,490 $ 3,233 $ 937 $ 12,011 December 31, 2019 Loans Past Due Over 90 Days Still Troubled Debt Restructured Nonaccrual Excluding (Dollar amounts in thousands) Accruing Accruing Nonaccrual TDR Commercial Commercial & Industrial $ — $ — $ 11 $ 2,191 Farmland 5 — — 2,410 Non Farm, Non Residential — — — 441 Agriculture — — — 485 All Other Commercial — — — 114 Residential First Liens 625 3,007 396 2,876 Home Equity 12 — — 61 Junior Liens 51 94 9 175 Multifamily — — — — All Other Residential 738 — — 203 Consumer Motor Vehicle 227 — 15 138 All Other Consumer 4 239 444 452 TOTAL $ 1,662 $ 3,340 $ 875 $ 9,546 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, 2020 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 $ 3,593 $ 2,695 $ 1,635 $ 7,923 $ 609,765 $ 617,688 Farmland 115 — 1,417 1,532 133,247 134,779 Non Farm, Non Residential 4,842 7 44 4,893 379,990 384,883 Agriculture — 6 — 6 144,779 144,785 All Other Commercial 929 — 43 972 292,928 293,900 Residential First Liens 6,972 344 1,497 8,813 365,938 374,751 Home Equity 181 23 157 361 68,207 68,568 Junior Liens 379 4 29 412 55,153 55,565 Multifamily 1,621 — — 1,621 143,192 144,813 All Other Residential 69 — 41 110 21,125 21,235 Consumer Motor Vehicle 5,215 534 199 5,948 353,305 359,253 All Other Consumer 319 15 14 348 30,048 30,396 TOTAL $ 24,235 $ 3,628 $ 5,076 $ 32,939 $ 2,597,677 $ 2,630,616 December 31, 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 $ 2,885 $ 766 $ 1,379 $ 5,030 $ 594,925 $ 599,955 Farmland 132 — 2,089 2,221 137,730 139,951 Non Farm, Non Residential 3,749 104 — 3,853 398,854 402,707 Agriculture 277 128 — 405 162,794 163,199 All Other Commercial — — 109 109 288,845 288,954 Residential First Liens 6,452 1,292 1,458 9,202 375,924 385,126 Home Equity 124 63 34 221 70,813 71,034 Junior Liens 384 43 137 564 54,533 55,097 Multifamily — — — — 148,282 148,282 All Other Residential 1,082 — 890 1,972 22,510 24,482 Consumer Motor Vehicle 6,488 983 270 7,741 347,950 355,691 All Other Consumer 228 42 2 272 31,692 31,964 TOTAL $ 21,801 $ 3,421 $ 6,368 $ 31,590 $ 2,634,852 $ 2,666,442 During the three months ended March 31, 2020 and 2019 , the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDRs. 2020 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, $ 11 $ 3,485 $ 698 $ 4,194 Added — 60 94 154 Charged Off — (6 ) (35 ) (41 ) Payments (7 ) (101 ) (43 ) (151 ) March 31, $ 4 $ 3,438 $ 714 $ 4,156 2019 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, 145 4,043 618 4,806 Added — 122 71 193 Charged Off — (16 ) (16 ) (32 ) Payments (9 ) (130 ) (54 ) (193 ) March 31, 136 4,019 619 4,774 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 2020 or 2019 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, 2020 and 2019 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 March 31, 2020 and 2019 . The Corporation has not committed to lend additional amounts as of March 31, 2020 and 2019 to customers with outstanding loans that are classified as troubled debt restructurings. None of the charge-offs during the three months ended March 31, 2020 and 2019 were of restructurings that had occurred in the previous 12 months. The CARES Act includes a provision that permits a financial institution to elect to suspend temporarily troubled debt restructuring accounting under ASC Subtopic 310-40 in certain circumstances (“section 4013”). To be eligible under section 4013, a loan modification must be (1) related to COVID-19; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 31, 2020. In response to this section of the CARES Act, the federal banking agencies issued a revised interagency statement on April 7, 2020 that, in consultation with the Financial Accounting Standards Board, confirmed that for loans not subject to section 4013, short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not troubled debt restructurings under ASC Subtopic 310-40. This includes short-term (e.g., up to six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. In the first quarter ending March 31, 2020, 81 loans totaling $110 million were modified, related to COVID-19, that were not considered troubled debt restructurings. 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 March 31, 2020 and December 31, 2019 , and based on the most recent analysis performed, the risk category of loans by class of loans are as follows: March 31, 2020 (Dollar amounts in thousands) Pass Special Mention Substandard Doubtful Not Rated Total Commercial Commercial & Industrial $ 568,957 $ 16,870 $ 22,758 $ — $ 7,333 $ 615,918 Farmland 115,976 9,213 7,753 — 62 133,004 Non Farm, Non Residential 366,697 4,427 12,149 — 685 383,958 Agriculture 118,014 3,999 19,193 — 498 141,704 All Other Commercial 288,600 3,095 1,025 — 36 292,756 Residential First Liens 103,047 1,026 4,089 — 265,416 373,578 Home Equity 2,466 — 170 — 65,743 68,379 Junior Liens 2,189 34 171 — 53,045 55,439 Multifamily 143,064 110 1,315 — — 144,489 All Other Residential 8,255 — 52 — 12,868 21,175 Consumer Motor Vehicle 495 — 546 — 356,688 357,729 All Other Consumer 369 — 50 — 29,832 30,251 TOTAL $ 1,718,129 $ 38,774 $ 69,271 $ — $ 792,206 $ 2,618,380 December 31, 2019 (Dollar amounts in thousands) Pass Special Mention Substandard Doubtful Not Rated Total Commercial Commercial & Industrial $ 549,341 $ 19,253 $ 26,349 $ 5 $ 2,761 $ 597,709 Farmland 119,858 8,673 8,644 — 100 137,275 Non Farm, Non Residential 381,404 4,424 12,269 — 3,678 401,775 Agriculture 127,144 4,507 27,490 — 985 160,126 All Other Commercial 283,266 3,141 1,120 — 35 287,562 Residential First Liens 174,338 926 4,382 — 204,266 383,912 Home Equity 18,417 — 134 11 52,280 70,842 Junior Liens 2,839 64 178 76 51,817 54,974 Multifamily 146,497 112 1,315 — 19 147,943 All Other Residential 12,624 — 205 — 11,577 24,406 Consumer Motor Vehicle 2,880 — 538 — 350,780 354,198 All Other Consumer 3,155 — 38 — 28,615 31,808 TOTAL $ 1,821,763 $ 41,100 $ 82,662 $ 92 $ 706,913 $ 2,652,530 |