ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY | NOTE 4. ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY The following tables present the activity in the allowance for loan losses by portfolio segment for the three-month periods ended June 30, 2015 and 2014: Commercial Real Estate Commercial and Agri-business Consumer and Multifamily and Other 1-4 Family Other (dollars in thousands) Industrial Residential Agricultural Commercial Mortgage Consumer Unallocated Total Three Months Ended June 30, 2015 Beginning balance, April 1 $23,024 $13,804 $1,627 $398 $3,313 $430 $3,081 $45,677 Provision for loan losses (228) (283) 248 (40) 160 (16) 159 0 Loans charged-off (507) (429) 0 0 (6) (53) 0 (995) Recoveries 71 20 6 0 6 31 0 134 Net loans charged-off (436) (409) 6 0 0 (22) 0 (861) Ending balance $22,360 $13,112 $1,881 $358 $3,473 $392 $3,240 $44,816 Commercial Real Estate Commercial and Agri-business Consumer and Multifamily and Other 1-4 Family Other (dollars in thousands) Industrial Residential Agricultural Commercial Mortgage Consumer Unallocated Total Three Months Ended June 30, 2014 Beginning balance $21,730 $15,648 $1,408 $249 $3,064 $549 $3,489 $46,137 Provision for loan losses (343) 329 (10) (15) 276 (56) (181) 0 Loans charged-off (483) (22) 0 0 (107) (43) 0 (655) Recoveries 18 20 6 0 42 37 0 123 Net loans charged-off (465) (2) 6 0 (65) (6) 0 (532) Ending balance $20,922 $15,975 $1,404 $234 $3,275 $487 $3,308 $45,605 The following tables present the activity in the allowance for loan losses by portfolio segment for the six-month periods ended June 30, 2015 and 2014: Commercial Real Estate Commercial and Agri-business Consumer and Multifamily and Other 1-4 Family Other (dollars in thousands) Industrial Residential Agricultural Commercial Mortgage Consumer Unallocated Total Six Months Ended June 30, 2015 Beginning balance, January 1 $22,785 $14,153 $1,790 $276 $3,459 $483 $3,316 $46,262 Provision for loan losses 328 (621) 81 204 135 (51) (76) 0 Loans charged-off (876) (459) 0 (122) (140) (106) 0 (1,703) Recoveries 123 39 10 0 19 66 0 257 Net loans charged-off (753) (420) 10 (122) (121) (40) 0 (1,446) Ending balance $22,360 $13,112 $1,881 $358 $3,473 $392 $3,240 $44,816 Commercial Real Estate Commercial and Agri-business Consumer and Multifamily and Other 1-4 Family Other (dollars in thousands) Industrial Residential Agricultural Commercial Mortgage Consumer Unallocated Total Six Months Ended June 30, 2014 Beginning balance $21,005 $18,556 $1,682 $391 $3,046 $608 $3,509 $48,797 Provision for loan losses 377 (59) (289) (157) 408 (79) (201) 0 Loans charged-off (513) (2,553) 0 0 (222) (118) 0 (3,406) Recoveries 53 31 11 0 43 76 0 214 Net loans charged-off (460) (2,522) 11 0 (179) (42) 0 (3,192) Ending balance $20,922 $15,975 $1,404 $234 $3,275 $487 $3,308 $45,605 The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2015 and December 31, 2014: Commercial Real Estate Commercial and Agri-business Consumer and Multifamily and Other 1-4 Family Other (dollars in thousands) Industrial Residential Agricultural Commercial Mortgage Consumer Unallocated Total June 30, 2015 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $2,228 $862 $0 $0 $416 $66 $0 $3,572 Collectively evaluated for impairment 20,132 12,250 1,881 358 3,057 326 3,240 41,244 Total ending allowance balance $22,360 $13,112 $1,881 $358 $3,473 $392 $3,240 $44,816 Loans: Loans individually evaluated for impairment $7,411 $11,209 $477 $0 $3,126 $112 $0 $22,335 Loans collectively evaluated for impairment 1,136,650 1,039,318 250,933 82,242 311,370 50,614 0 2,871,127 Total ending loans balance $1,144,061 $1,050,527 $251,410 $82,242 $314,496 $50,726 $0 $2,893,462 Commercial Real Estate Commercial and Agri-business Consumer and Multifamily and Other 1-4 Family Other (dollars in thousands) Industrial Residential Agricultural Commercial Mortgage Consumer Unallocated Total December 31, 2014 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $3,306 $1,531 $14 $15 $482 $73 $0 $5,421 Collectively evaluated for impairment 19,479 12,622 1,776 261 2,977 410 3,316 40,841 Total ending allowance balance $22,785 $14,153 $1,790 $276 $3,459 $483 $3,316 $46,262 Loans: Loans individually evaluated for impairment $14,702 $13,005 $486 $30 $3,614 $127 $0 $31,964 Loans collectively evaluated for impairment 1,020,897 1,011,858 273,388 75,684 299,189 49,340 0 2,730,356 Total ending loans balance $1,035,599 $1,024,863 $273,874 $75,714 $302,803 $49,467 $0 $2,762,320 The following table presents loans individually evaluated for impairment by class of loans as of June 30, 2015: Unpaid Allowance for Principal Recorded Loan Losses (dollars in thousands) Balance Investment Allocated With no related allowance recorded: Commercial and industrial loans: Working capital lines of credit loans $21 $21 $0 Non-working capital loans 2,519 752 0 Commercial real estate and multi-family residential loans: Construction and land development loans 0 0 0 Owner occupied loans 2,737 2,557 0 Nonowner occupied loans 5,536 5,541 0 Multifamily loans 0 0 0 Agri-business and agricultural loans: Loans secured by farmland 976 477 0 Loans for ag production 0 0 0 Other commercial loans 0 0 0 Consumer 1-4 family loans: Closed end first mortgage loans 403 338 0 Open end and junior lien loans 132 132 0 Residential construction loans 0 0 0 Other consumer loans 4 4 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 983 983 433 Non-working capital loans 7,847 5,655 1,795 Commercial real estate and multi-family residential loans: Construction and land development loans 373 373 58 Owner occupied loans 2,768 2,738 804 Nonowner occupied loans 0 0 0 Multifamily loans 0 0 0 Agri-business and agricultural loans: Loans secured by farmland 0 0 0 Loans for agricultural production 0 0 0 Other commercial loans 0 0 0 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 2,721 2,622 413 Open end and junior lien loans 34 34 3 Residential construction loans 0 0 0 Other consumer loans 108 108 66 Total $27,162 $22,335 $3,572 The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2014: Unpaid Allowance for Principal Recorded Loan Losses (dollars in thousands) Balance Investment Allocated With no related allowance recorded: Commercial and industrial loans: Working capital lines of credit loans $21 $21 $0 Non-working capital loans 1,673 279 0 Commercial real estate and multi-family residential loans: Construction and land development loans 526 526 0 Owner occupied loans 554 374 0 Nonowner occupied loans 3,030 3,036 0 Agri-business and agricultural loans: Loans secured by farmland 603 283 0 Consumer 1-4 family loans: Closed end first mortgage loans 724 712 0 Open end and junior lien loans 317 317 0 Residential construction loans 129 129 0 Other consumer loans 1 1 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 1,409 1,408 837 Non-working capital loans 15,557 12,994 2,469 Commercial real estate and multi-family residential loans: Construction and land development loans 449 448 107 Owner occupied loans 5,298 5,297 1,213 Nonowner occupied loans 3,324 3,324 211 Agri-business and agricultural loans: Loans secured by farmland 381 203 14 Other commercial loans 30 30 15 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 2,505 2,375 474 Open end and junior lien loans 81 81 8 Other consumer loans 126 126 73 Total $36,738 $31,964 $5,421 The following table presents loans individually evaluated for impairment by class of loans as of and for the three-month period ended June 30, 2015: Cash Basis Average Interest Interest Recorded Income Income (dollars in thousands) Investment Recognized Recognized With no related allowance recorded: Commercial and industrial loans: Working capital lines of credit loans $21 $0 $0 Non-working capital loans 767 0 0 Commercial real estate and multi-family residential loans: Construction and land development loans 0 0 0 Owner occupied loans 2,865 0 0 Nonowner occupied loans 5,590 26 27 Multifamily loans 0 0 0 Agri-business and agricultural loans: Loans secured by farmland 479 0 0 Loans for ag production 0 0 0 Other commercial loans 0 0 0 Consumer 1-4 family loans: Closed end first mortgage loans 329 0 0 Open end and junior lien loans 245 0 0 Residential construction loans 0 0 0 Other consumer loans 4 0 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 994 7 7 Non-working capital loans 9,670 112 124 Commercial real estate and multi-family residential loans: Construction and land development loans 373 4 5 Owner occupied loans 2,753 0 0 Nonowner occupied loans 0 0 0 Multifamily loans 0 0 0 Agri-business and agricultural loans: Loans secured by farmland 0 0 0 Loans for agricultural production 0 0 0 Other commercial loans 0 0 0 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 2,687 16 16 Open end and junior lien loans 34 0 0 Residential construction loans 0 0 0 Other consumer loans 111 1 1 Total $26,922 $166 $180 The following table presents loans individually evaluated for impairment by class of loans as of and for the three-month period ended June 30, 2014: Cash Basis Average Interest Interest Recorded Income Income (dollars in thousands) Investment Recognized Recognized With no related allowance recorded: Commercial and industrial loans: Working capital lines of credit loans $462 $0 $1 Non-working capital loans 124 0 0 Commercial real estate and multi-family residential loans: Construction and land development loans 0 0 0 Owner occupied loans 168 0 0 Nonowner occupied loans 344 0 0 Multifamily loans 0 0 0 Agri-business and agricultural loans: Loans secured by farmland 0 0 0 Loans for ag production 0 0 0 Other commercial loans 0 0 0 Consumer 1-4 family loans: Closed end first mortgage loans 688 0 0 Open end and junior lien loans 157 0 0 Residential construction loans 141 0 0 Other consumer loans 3 0 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 1,549 21 16 Non-working capital loans 13,898 134 136 Commercial real estate and multi-family residential loans: Construction and land development loans 2,695 15 16 Owner occupied loans 1,921 6 0 Nonowner occupied loans 7,218 35 35 Multifamily loans 0 0 0 Agri-business and agricultural loans: Loans secured by farmland 616 0 0 Loans for agricultural production 0 0 0 Other commercial loans 0 0 0 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 2,736 17 17 Open end and junior lien loans 29 0 0 Residential construction loans 0 0 0 Other consumer loans 82 0 0 Total $32,831 $228 $221 The following table presents loans individually evaluated for impairment by class of loans as of and for the six-month period ended June 30, 2015: Cash Basis Average Interest Interest Recorded Income Income (dollars in thousands) Investment Recognized Recognized With no related allowance recorded: Commercial and industrial loans: Working capital lines of credit loans $21 $0 $0 Non-working capital loans 565 1 1 Commercial real estate and multi-family residential loans: Construction and land development loans 263 0 0 Owner occupied loans 1,704 0 0 Nonowner occupied loans 4,053 54 56 Multifamily loans 0 0 0 Agri-business and agricultural loans: Loans secured by farmland 381 0 0 Loans for ag production 0 0 0 Other commercial loans 0 0 0 Consumer 1-4 family loans: Closed end first mortgage loans 244 0 0 Open end and junior lien loans 292 0 0 Residential construction loans 21 0 0 Other consumer loans 2 0 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 1,003 16 14 Non-working capital loans 11,118 234 247 Commercial real estate and multi-family residential loans: Construction and land development loans 411 8 9 Owner occupied loans 4,201 21 22 Nonowner occupied loans 1,635 0 0 Multifamily loans 0 0 0 Agri-business and agricultural loans: Loans secured by farmland 100 0 0 Loans for agricultural production 0 0 0 Other commercial loans 5 0 0 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 2,850 33 30 Open end and junior lien loans 34 0 0 Residential construction loans 0 0 0 Other consumer loans 116 2 2 Total $29,019 $369 $381 The following table presents loans individually evaluated for impairment by class of loans as of and for the six-month period ended June 30, 2014: Cash Basis Average Interest Interest Recorded Income Income (dollars in thousands) Investment Recognized Recognized With no related allowance recorded: Commercial and industrial loans: Working capital lines of credit loans $287 $1 $1 Non-working capital loans 62 0 0 Commercial real estate and multi-family residential loans: Construction and land development loans 0 0 0 Owner occupied loans 243 0 0 Nonowner occupied loans 349 0 0 Multifamily loans 0 0 0 Agri-business and agricultural loans: Loans secured by farmland 196 0 0 Loans for ag production 0 0 0 Other commercial loans 0 0 0 Consumer 1-4 family loans: Closed end first mortgage loans 689 0 0 Open end and junior lien loans 113 0 0 Residential construction loans 144 0 0 Other consumer loans 2 0 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 2,000 33 29 Non-working capital loans 13,840 260 262 Commercial real estate and multi-family residential loans: Construction and land development loans 2,663 30 31 Owner occupied loans 2,816 19 14 Nonowner occupied loans 9,526 69 69 Multifamily loans 0 0 0 Agri-business and agricultural loans: 0 Loans secured by farmland 559 0 0 Loans for agricultural production 0 0 0 Other commercial loans 0 0 0 Consumer 1-4 family mortgage loans: 0 Closed end first mortgage loans 2,835 33 36 Open end and junior lien loans 73 0 0 Residential construction loans 0 0 0 Other consumer loans 87 0 0 Total $36,484 $445 $442 The following table presents the aging of the recorded investment in past due loans as of June 30, 2015 by class of loans: 30-89 Greater than Loans Not Days 90 Days Total (dollars in thousands) Past Due Past Due Past Due Nonaccrual Past Due Total Commercial and industrial loans: Working capital lines of credit loans $605,190 $40 $0 $580 $620 $605,810 Non-working capital loans 534,829 127 275 3,020 3,422 538,251 Commercial real estate and multi-family residential loans: Construction and land development loans 151,936 0 0 0 0 151,936 Owner occupied loans 401,579 2,439 0 5,295 7,734 409,313 Nonowner occupied loans 395,575 269 0 3,359 3,628 399,203 Multifamily loans 90,075 0 0 0 0 90,075 Agri-business and agricultural loans: Loans secured by farmland 155,526 0 0 477 477 156,003 Loans for agricultural production 95,407 0 0 0 0 95,407 Other commercial loans 82,242 0 0 0 0 82,242 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 146,031 1,508 9 1,154 2,671 148,702 Open end and junior lien loans 156,736 86 0 166 252 156,988 Residential construction loans 8,806 0 0 0 0 8,806 Other consumer loans 50,569 117 0 40 157 50,726 Total $2,874,501 $4,586 $284 $14,091 $18,961 $2,893,462 The following table presents the aging of the recorded investment in past due loans as of December 31, 2014 by class of loans: 30-89 Greater than Loans Not Days 90 Days Total (dollars in thousands) Past Due Past Due Past Due Nonaccrual Past Due Total Commercial and industrial loans: Working capital lines of credit loans $543,613 $0 $0 $632 $632 $544,245 Non-working capital loans 487,655 0 101 3,598 3,699 491,354 Commercial real estate and multi-family residential loans: Construction and land development loans 155,711 0 0 526 526 156,237 Owner occupied loans 399,028 800 0 3,049 3,849 402,877 Nonowner occupied loans 390,394 31 0 3,629 3,660 394,054 Multi-family loans 71,695 0 0 0 0 71,695 Agri-business and agricultural loans: Loans secured by farmland 136,923 0 0 485 485 137,408 Loans for agricultural production 136,466 0 0 0 0 136,466 Other commercial loans 75,684 0 0 30 30 75,714 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 142,615 1,198 20 1,051 2,269 144,884 Open end and junior lien loans 150,551 235 9 398 642 151,193 Residential construction loans 6,597 0 0 129 129 6,726 Other consumer loans 49,308 108 0 51 159 49,467 Total $2,746,240 $2,372 $130 $13,578 $16,080 $2,762,320 Troubled Debt Restructurings: Troubled debt restructured loans are included in the totals for impaired loans. The Company has allocated $2.7 million and $3.4 million of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of June 30, 2015 and December 31, 2014. The Company is not committed to lend additional funds to debtors whose loans have been modified in a troubled debt restructuring. June 30, December 31, (dollars in thousands) 2015 2014 Accruing troubled debt restructured loans $7,606 $16,492 Nonaccrual troubled debt restructured loans 11,177 9,161 Total troubled debt restructured loans $18,783 $25,653 During the quarter ending June 30, 2015, certain loans were modified as troubled debt restructurings. The modified terms of these loans include one or a combination of the following: inadequate compensation for the terms of the restructure or renewal; a modification of the repayment terms which delays principal repayment for some period; or renewal terms offered to borrowers in financial distress where no additional credit enhancements were obtained at the time of renewal. There were renewal terms offered to two borrowers under financial duress which did not require additional compensation or consideration, and the terms offered would not have been readily available in the marketplace for loans bearing similar risk profiles. In these instances, it was determined that a concession had been granted. It is difficult to quantify the concessions granted due to an absence of readily available market terms to be used for comparison. These loans were both commercial and industrial working capital loans with recorded investments of $379,000 and $185,000, respectively. During the quarter ending March 31, 2015, there were renewal terms offered to one borrower under financial duress which did not require additional compensation or consideration, and the terms offered would not have been readily available in the marketplace for loans bearing similar risk profiles. In this instance, it was determined that a concession had been granted. It is difficult to quantify the concession granted due to an absence of readily available market terms to be used for comparison. The loan to the borrower is for a commercial real estate building where the collateral value and cash flows from the company occupying the building did not support the loan with a recorded investment of $788,000. The following table presents loans by class modified as new troubled debt restructurings that occurred during the three month period ending June 30, 2015: All Modifications Modified Repayment Terms Pre-Modification Post-Modification Extension Outstanding Outstanding Period or Number of Recorded Recorded Number of Range (dollars in thousands) Loans Investment Investment Loans (in months) Troubled Debt Restructurings Commercial and industrial loans: Working capital lines of credit loans 2 $564 $564 Non-working capital loans 1 783 783 1 12 Commercial real estate and multi- family residential loans: Owner occupied loans 1 67 67 1 6 Total 4 $1,414 $1,414 2 6-12 The following table presents loans by class modified as new troubled debt restructurings that occurred during the six month period ending June 30, 2015: All Modifications Modified Repayment Terms Pre-Modification Post-Modification Extension Outstanding Outstanding Period or Number of Recorded Recorded Number of Range (dollars in thousands) Loans Investment Investment Loans (in months) Troubled Debt Restructurings Commercial and industrial loans: Working capital lines of credit loans 2 $564 $564 Non-working capital loans 1 783 783 1 12 Commercial real estate and multi- family residential loans: Owner occupied loans 2 855 855 1 6 Total 5 $2,202 $2,202 2 6-12 For the three month period ending June 30, 2015, the commercial and industrial troubled debt restructurings described above increased the allowance for loan losses by $49,000 and the commercial real estate and multi-family residential loan troubled debt restructuring described above decreased the allowance for loan losses by $28,000. For the six month period ending June 30, 2015, the commercial and industrial troubled debt restructurings described above increased the allowance for loan losses by $170,000 and the commercial real estate and multi-family residential loan troubled debt restructuring described above decreased the allowance for loan losses by $22,000. No charge-offs resulted from the troubled debt restructuring described above during the three or six month periods ending June 30, 2015. For the three month period ending June 30, 2014, the commercial and industrial troubled debt restructurings increased the allowance for loan losses by $36,000 and the commercial real estate and multi-family residential loan troubled debt restructuring increased the allowance for loan losses by $8,000. For the six month period ending June 30, 2014, the commercial and industrial troubled debt restructurings increased the allowance for loan losses by $137,000 and the commercial real estate and multi-family residential loan troubled debt restructuring increased the allowance for loan losses by $2,000. No charge-offs resulted from the troubled debt restructuring during the three or six month periods ending June 30, 2014. No loans were modified as troubled debt restructurings during the second quarter of 2014. The following table presents loans by class modified as troubled debt restructurings that occurred during the six months ending June 30, 2014: All Modifications Modified Repayment Terms Pre-Modification Post-Modification Extension Outstanding Outstanding Period or Number of Recorded Recorded Number of Range (dollars in thousands) Loans Investment Investment Loans (in months) Troubled Debt Restructurings Commercial and industrial loans: Non-working capital loans 2 $ 433 $ 433 2 12-15 Commercial real estate and multi- family residential loans: Owner occupied loans 1 158 159 Total 3 $ 591 $ 592 2 12-15 There were no troubled debt restructurings that had payment defaults within the twelve months following modification during the three or six month periods ended June 30, 2015 and the three month period ended June 30, 2014. Credit Quality Indicators: The Company 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 Company analyzes commercial loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis for Special Mention, Substandard and Doubtful grade loans and annually on Pass grade loans over $150,000. The Company 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 paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard, with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be Pass rated loans with the exception of consumer troubled debt restructurings which are evaluated and listed with Substandard commercial grade loans and consumer nonaccrual loans which are evaluated individually and listed with Not Rated loans. Loans listed as Not Rated are consumer loans included in groups of homogenous loans which are analyzed for credit quality indicators utilizing delinquency status. As of June 30, 2015, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special Not (dollars in thousands) Pass Mention Substandard Doubtful Rated Total Commercial and industrial loans: Working capital lines of credit loans $ 563,337 $ 36,003 $ 6,470 $ 0 $ 0 $ 605,810 Non-working capital loans 488,192 36,406 10,783 0 2,870 538,251 Commercial real estate and multi- family residential loans: Construction and land development loans 148,079 1,272 2,585 0 0 151,936 Owner occupied loans 375,025 24,646 9,642 0 0 409,313 Nonowner occupied loans 381,942 11,753 5,508 0 0 399,203 Multifamily loans 90,075 0 0 0 0 90,075 Agri-business and agricultural loans: Loans secured by farmland 155,526 0 477 0 0 156,003 Loans for agricultural production 95,407 0 0 0 0 95,407 Other commercial loans 82,238 0 0 0 4 82,242 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 40,008 126 1,841 0 106,727 148,702 Open end and junior lien loans 9,374 0 2,015 0 145,599 156,988 Residential construction loans 0 0 0 0 8,806 8,806 Other consumer loans 16,572 0 72 0 34,082 50,726 Total $ 2,445,775 $ 110,206 $ 39,393 $ 0 $ 298,088 $ 2,893,462 As of December 31, 2014, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special Not (dollars in thousands) Pass Mention Substandard Doubtful Rated Total Commercial and industrial loans: Working capital lines of credit loans $504,806 $28,485 $10,343 $611 $0 $544,245 Non-working capital loans 436,735 31,781 20,324 0 2,514 491,354 Commercial real estate and multi- family residential loans: Construction and land development loans 150,442 1,033 4,762 0 0 156,237 Owner occupied loans 369,520 20,960 12,397 0 0 402,877 Nonowner occupied loans 375,702 12,512 5,840 0 0 394,054 Multi-family loans 71,695 0 0 0 0 71,695 Agri-business and agricultural loans: Loans secured by farmland 136,923 0 485 0 0 137,408 Loans for agricultural production 136,466 0 0 0 0 136,466 Other commercial loans 75,680 0 30 0 4 75,714 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 39,156 0 2,199 0 103,529 144,884 Open end and junior lien loans 8,400 291 2,015 0 140,487 151,193 Residential construction loans 0 0 0 0 6,726 6,726 Other consumer loans 15,879 290 75 0 33,223 49,467 Total $2,321,404 $95,352 $58,470 $611 $286,483 $2,762,320 |