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 September 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 September 30, 2015 Beginning balance, July 1 $22,360 $13,112 $1,881 $358 $3,473 $392 $3,240 $44,816 Provision for loan losses (88) (235) 103 11 14 (13) 208 0 Loans charged-off (2) 0 0 0 (152) (74) 0 (228) 43 14 5 0 21 23 0 106 Net loans charged-off 41 14 5 0 (131) (51) 0 (122) Ending balance $22,313 $12,891 $1,989 $369 $3,356 $328 $3,448 $44,694 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 September 30, 2014 Beginning balance, July 1 $20,922 $15,975 $1,404 $234 $3,275 $487 $3,308 $45,605 Provision for loan losses 919 (1,275) (34) 76 179 68 67 0 Loans charged-off (147) 0 0 0 (60) (62) 0 (269) Recoveries 291 670 5 0 59 26 0 1,051 Net loans charged-off 144 670 5 0 (1) (36) 0 782 Ending balance $21,985 $15,370 $1,375 $310 $3,453 $519 $3,375 $46,387 The following tables present the activity in the allowance for loan losses by portfolio segment for the nine-month periods ended September 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 Nine Months Ended September 30, 2015 Beginning balance, January 1 $22,785 $14,153 $1,790 $276 $3,459 $483 $3,316 $46,262 Provision for loan losses 240 (856) 184 215 149 (64) 132 0 Loans charged-off (878) (459) 0 (122) (292) (180) 0 (1,931) 166 53 15 0 40 89 0 363 Net loans charged-off (712) (406) 15 (122) (252) (91) 0 (1,568) Ending balance $22,313 $12,891 $1,989 $369 $3,356 $328 $3,448 $44,694 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 Nine Months Ended September 30, 2014 Beginning balance, January 1 $21,005 $18,557 $1,682 $391 $3,045 $608 $3,509 $48,797 Provision for loan losses 1,296 (1,334) (323) (81) 587 (11) (134) 0 Loans charged-off (660) (2,553) 0 0 (282) (180) 0 (3,675) Recoveries 344 701 16 0 102 102 0 1,265 Net loans charged-off (316) (1,852) 16 0 (180) (78) 0 (2,410) Ending balance $21,985 $15,371 $1,375 $310 $3,452 $519 $3,375 $46,387 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 September 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 September 30, 2015 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $3,129 $783 $0 $0 $333 $59 $0 $4,304 Collectively evaluated for impairment 19,184 12,108 1,989 369 3,023 269 3,448 40,390 Total ending allowance balance $22,313 $12,891 $1,989 $369 $3,356 $328 $3,448 $44,694 Loans: Loans individually evaluated for impairment $9,140 $10,530 $472 $0 $2,434 $90 $0 $22,666 Loans collectively evaluated for impairment 1,162,373 1,085,215 248,678 82,971 321,393 48,984 0 2,949,614 Total ending loans balance $1,171,513 $1,095,745 $249,150 $82,971 $323,827 $49,074 $0 $2,972,280 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 September 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 $20 $20 $0 Non-working capital loans 2,431 665 0 Commercial real estate and multi-family residential loans: Owner occupied loans 2,441 2,261 0 Nonowner occupied loans 5,272 5,276 0 Agri-business and agricultural loans: Loans secured by farmland 971 472 0 Consumer 1-4 family loans: Closed end first mortgage loans 535 383 0 Open end and junior lien loans 128 128 0 Other consumer loans 3 3 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 1,916 1,915 822 Non-working capital loans 8,732 6,540 2,307 Commercial real estate and multi-family residential loans: Construction and land development loans 340 339 40 Owner occupied loans 2,684 2,654 743 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 1,999 1,923 333 Other consumer loans 87 87 59 Total $27,559 $22,666 $4,304 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 September 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 $ 20 $ 0 $ 0 Non-working capital loans 709 1 1 Commercial real estate and multi-family residential loans: Owner occupied loans 2,442 0 0 Nonowner occupied loans 5,404 26 27 Agri-business and agricultural loans: Loans secured by farmland 474 0 0 Consumer 1-4 family loans: Closed end first mortgage loans 415 0 0 Open end and junior lien loans 130 0 0 Other consumer loans 5 0 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 1,202 3 4 Non-working capital loans 6,092 47 43 Commercial real estate and multi-family residential loans: Construction and land development loans 351 4 2 Owner occupied loans 2,682 0 0 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 2,125 15 14 Other consumer loans 99 1 2 Total $ 22,150 $ 97 $ 93 The following table presents loans individually evaluated for impairment by class of loans as of and for the three-month period ended September 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 $22 $0 $0 Non-working capital loans 290 0 0 Commercial real estate and multi-family residential loans: Construction and land development loans 533 0 0 Owner occupied loans 160 0 0 Nonowner occupied loans 327 0 0 Agri-business and agricultural loans: Loans secured by farmland 284 0 0 Consumer 1-4 family loans: Closed end first mortgage loans 695 0 0 Open end and junior lien loans 286 0 0 Residential construction loans 135 0 0 Other consumer loans 1 0 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 1,680 22 18 Non-working capital loans 13,662 127 126 Commercial real estate and multi-family residential loans: Construction and land development loans 1,679 7 5 Owner occupied loans 3,241 26 29 Nonowner occupied loans 6,485 35 36 Agri-business and agricultural loans: Loans secured by farmland 203 0 0 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 2,568 17 17 Open end and junior lien loans 48 0 0 Other consumer loans 89 1 1 Total $32,388 $235 $232 The following table presents loans individually evaluated for impairment by class of loans as of and for the nine-month period ended September 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 613 2 2 Commercial real estate and multi-family residential loans: Construction and land development loans 175 0 0 Owner occupied loans 1,950 0 0 Nonowner occupied loans 4,504 80 83 Agri-business and agricultural loans: Loans secured by farmland 412 0 0 Consumer 1-4 family loans: Closed end first mortgage loans 301 0 0 Open end and junior lien loans 238 0 0 Residential construction loans 14 0 0 Other consumer loans 3 0 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 1,069 19 18 Non-working capital loans 9,443 281 290 Commercial real estate and multi-family residential loans: Construction and land development loans 391 12 11 Owner occupied loans 3,695 21 22 Nonowner occupied loans 1,090 0 0 Agri-business and agricultural loans: Loans secured by farmland 67 0 0 Other commercial loans 3 0 0 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 2,608 48 44 Open end and junior lien loans 23 0 0 Other consumer loans 110 3 4 Total $ 26,730 $ 466 $ 474 The following table presents loans individually evaluated for impairment by class of loans as of and for the nine-month period ended September 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 $186 $1 $1 Non-working capital loans 133 0 0 Commercial real estate and multi-family residential loans: Construction and land development loans 178 0 0 Owner occupied loans 215 0 0 Nonowner occupied loans 341 0 0 Agri-business and agricultural loans: Loans secured by farmland 226 0 0 Consumer 1-4 family loans: Closed end first mortgage loans 691 0 0 Open end and junior lien loans 170 0 0 Residential construction loans 141 0 0 Other consumer loans 1 0 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 1,893 55 47 Non-working capital loans 13,762 387 388 Commercial real estate and multi-family residential loans: Construction and land development loans 2,341 37 36 Owner occupied loans 2,956 45 43 Nonowner occupied loans 8,507 104 105 Agri-business and agricultural loans: Loans secured by farmland 411 0 0 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 2,740 50 53 Open end and junior lien loans 66 0 0 Other consumer loans 87 1 1 Total $35,045 $680 $674 The following table presents the aging of the recorded investment in past due loans as of September 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 $591,700 $0 $0 $1,566 $1,566 $593,266 Non-working capital loans 574,413 252 0 3,582 3,834 578,247 Commercial real estate and multi-family residential loans: Construction and land development loans 176,615 0 0 0 0 176,615 Owner occupied loans 403,775 0 0 4,915 4,915 408,690 Nonowner occupied loans 414,336 0 0 3,115 3,115 417,451 Multifamily loans 92,989 0 0 0 0 92,989 Agri-business and agricultural loans: Loans secured by farmland 154,639 0 0 471 471 155,110 Loans for agricultural production 93,937 103 0 0 103 94,040 Other commercial loans 82,971 0 0 0 0 82,971 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 151,857 1,367 0 512 1,879 153,736 Open end and junior lien loans 161,375 163 0 128 291 161,666 Residential construction loans 8,425 0 0 0 0 8,425 Other consumer loans 48,951 103 0 20 123 49,074 Total $2,955,983 $1,988 $0 $14,309 $16,297 $2,972,280 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 $2.5 million and $3.4 million of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of September 30, 2015 and December 31, 2014. September 30 December 31, (dollars in thousands) 2015 2014 Accruing troubled debt restructured loans $7,605 $16,492 Nonaccrual troubled debt restructured loans 10,934 9,161 Total troubled debt restructured loans $18,539 $25,653 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. During the quarter ending September 30, 2015, there were renewal terms offered to one borrower under financial duress with a previously identified troubled debt restructured loan which did not require additional compensation or consideration, and the terms offered would not have been readily available in the marketplace for a loan bearing a similar risk profile. In this instance, it was determined that a concession had been granted. The loan to the borrower is for a commercial and industrial working capital loan with a recorded investment of $2.5 million. This concession is not included in the table below. During the quarter ending June 30, 2015, 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, not previously discussed, by class modified as new troubled debt restructurings that occurred during the three month period ending September 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 Consumer 1-4 family loans: Closed end first mortgage loans 1 $65 $78 1 208 Total 1 $65 $78 1 208 The following table presents loans, not previously discussed, by class modified as new troubled debt restructurings that occurred during the nine month period ending September 30, 2015: All Modifications Modified Repayment Terms Pre-Modification Post-Modification 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 Consumer 1-4 family loans: Closed end first mortgage loans 1 65 78 1 208 Total 6 $ 2,267 $ 2,280 3 6-208 For the three month period ending September 30, 2015, the commercial and industrial troubled debt restructurings described above decreased the allowance for loan losses by $68,000, the commercial real estate and multi-family residential loan troubled debt restructurings increased the allowance for loan losses by $9,000 and the consumer 1-4 family loan troubled debt restructuring described above increased the allowance by $13,000. For the nine month period ending September 30, 2015, the commercial and industrial troubled debt restructurings described above increased the allowance for loan losses by $102,000, the commercial real estate and multi-family residential loan troubled debt restructurings decreased the allowance for loan losses by $13,000 and the consumer 1-4 family loan troubled debt restructuring increased the allowance by $11,000. No charge-offs resulted from any troubled debt restructurings described above during the three and nine month period ending September 30, 2015. During the nine months ending September 30, 2014 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. During the quarter ending June 30, 2014 one loan previously identified as a troubled debt restructure was rewritten under terms that are not readily available in the marketplace. Terms in the current loan agreement include an amortization period that exceeds those of similar type loans for a borrower enduring financial hardship. This concession was granted without additional compensation. This loan had a balance of $173,000 as of June 30, 2014. During the quarter ending March 31, 2014, there were restructure 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 restructure was granted to a borrower engaged in retail sales where the collateral and cash flow did not support the loan with a recorded investment of $159,000. An additional concession was granted to a borrower with a previously restructured loan. The new concession includes further forgiveness of principal if the terms of the restructured loan are met during the life of the loan. This borrower had a recorded investment of $2.7 million as of March 31, 2014. The following table presents loans by class modified as troubled debt restructurings that occurred during the three months ending September 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 Owner occupied loans 1 $929 $1,000 1 24 Total 1 $929 $1,000 1 24 The following table presents loans by class modified as troubled debt restructurings that occurred during the nine months ending September 30, 2014: All Modifications Interest Rate Reductions Modified Repayment Terms Pre-Modification Post-Modification Extension Outstanding Outstanding Interest at Interest at Period or Number of Recorded Recorded Number of Pre-Modification Post-Modification Number of Range (dollars in thousands) Loans Investment Investment Loans Rate Rate Loans (in months) Troubled Debt Restructurings Commercial and industrial loans: Non-working capital loans 2 $433 $433 0 $0 $0 2 12-15 Commercial real estate and multi- family residential loans: Owner occupied loans 3 2,639 2,710 1 89 95 2 12-24 Total 5 $3,072 $3,143 1 $89 $95 4 12-24 For the quarter ending September 30, 2014, the commercial and industrial troubled debt restructurings described above increased the allowance for loan losses by $74,000 and the commercial real estate and multi-family residential loan troubled debt restructuring described above increased the allowance for loan losses by $53,000. For the nine month period ending September 30, 2014, the commercial and industrial troubled debt restructurings described above increased the allowance for loan losses by $211,000 and the commercial real estate and multi-family residential loan troubled debt restructuring described above increased the allowance for loan losses by $152,000. No charge-offs resulted from any of the troubled debt restructurings described above during the three-month and nine-month periods ending September 30, 2014. There were no troubled debt restructurings that had payment defaults within the twelve months following modification during the three or nine month periods ended September 30, 2015 and the three month or nine-month periods ended September 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. Substandard. Doubtful. 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. Special Not (dollars in thousands) Pass Mention Substandard Doubtful Rated Total Commercial and industrial loans: Working capital lines of credit loans $552,709 $32,373 $8,184 $0 $0 $593,266 Non-working capital loans 528,158 35,536 11,911 0 2,642 578,247 Commercial real estate and multi- family residential loans: Construction and land development loans 172,372 2,009 2,234 0 0 176,615 Owner occupied loans 376,411 22,632 9,647 0 0 408,690 Nonowner occupied loans 404,063 8,158 5,230 0 0 417,451 Multifamily loans 92,989 0 0 0 0 92,989 Agri-business and agricultural loans: Loans secured by farmland 154,638 0 472 0 0 155,110 Loans for agricultural production 94,040 0 0 0 0 94,040 Other commercial loans 82,966 0 0 0 5 82,971 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 43,051 126 1,906 0 108,653 153,736 Open end and junior lien loans 8,230 0 1,625 0 151,811 161,666 Residential construction loans 0 0 0 0 8,425 8,425 Other consumer loans 14,080 0 61 0 34,933 49,074 Total $2,523,707 $100,834 $41,270 $0 $306,469 $2,972,280 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 |