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, 2016 and 2015: 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, 2016 Beginning balance, July 1 $20,935 $12,637 $3,047 $365 $2,934 $333 $2,996 $43,247 Provision for loan losses (715) 650 56 18 72 70 (151) 0 Loans charged-off (168) (331) 0 0 (224) (50) 0 (773) 268 17 5 0 69 20 0 379 Net loans charged-off 100 (314) 5 0 (155) (30) 0 (394) Ending balance $20,320 $12,973 $3,108 $383 $2,851 $373 $2,845 $42,853 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) Recoveries 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 The following tables present the activity in the allowance for loan losses by portfolio segment for the nine-month periods ended September 30, 2016 and 2015: 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, 2016 Beginning balance, January 1 $21,564 $12,473 $2,445 $574 $3,395 $319 $2,840 $43,610 Provision for loan losses (1,057) 771 649 (191) (295) 118 5 0 Loans charged-off (542) (499) 0 0 (354) (140) 0 (1,535) 355 228 14 0 105 76 0 778 Net loans charged-off (187) (271) 14 0 (249) (64) 0 (757) Ending balance $20,320 $12,973 $3,108 $383 $2,851 $373 $2,845 $42,853 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) Recoveries 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 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, 2016 and December 31, 2015: 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, 2016 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $2,770 $272 $0 $0 $331 $50 $0 $3,423 Collectively evaluated for impairment 17,550 12,701 3,108 383 2,520 323 2,845 39,430 Total ending allowance balance $20,320 $12,973 $3,108 $383 $2,851 $373 $2,845 $42,853 Loans: Loans individually evaluated for impairment $8,095 $8,633 $283 $12 $1,523 $56 $0 $18,602 Loans collectively evaluated for impairment 1,242,900 1,216,429 309,280 89,835 344,335 58,780 0 3,261,559 Total ending loans balance $1,250,995 $1,225,062 $309,563 $89,847 $345,858 $58,836 $0 $3,280,161 Commercial Real Estate Commercial and Agri-business Consumer and Multi-family and Other 1-4 Family Other (dollars in thousands) Industrial Residential Agricultural Commercial Mortgage Consumer Unallocated Total December 31, 2015 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $2,781 $465 $0 $5 $358 $50 $0 $3,659 Collectively evaluated for impairment 18,783 12,008 2,445 569 3,037 269 2,840 39,951 Total ending allowance balance $21,564 $12,473 $2,445 $574 $3,395 $319 $2,840 $43,610 Loans: Loans individually evaluated for impairment $8,286 $9,823 $471 $12 $1,927 $60 $0 $20,579 Loans collectively evaluated for impairment 1,171,407 1,119,150 305,707 85,059 330,072 48,955 0 3,060,350 Total ending loans balance $1,179,693 $1,128,973 $306,178 $85,071 $331,999 $49,015 $0 $3,080,929 The following table presents loans individually evaluated for impairment by class of loans as of September 30, 2016: 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 $540 $385 $0 Non-working capital loans 3,526 1,477 0 Commercial real estate and multi-family residential loans: Construction and land development loans 146 146 0 Owner occupied loans 2,635 2,454 0 Nonowner occupied loans 4,674 4,677 0 Multifamily loans 381 50 0 Agri-business and agricultural loans: Loans secured by farmland 603 283 0 Other commercial loans 12 12 0 Consumer 1-4 family loans: Closed end first mortgage loans 143 105 0 Open end and junior lien loans 369 156 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 1,311 1,310 414 Non-working capital loans 4,925 4,923 2,356 Commercial real estate and multi-family residential loans: Construction and land development loans 164 164 1 Owner occupied loans 1,143 1,142 271 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 1,329 1,262 331 Other consumer loans 56 56 50 Total $21,957 $18,602 $3,423 The following table presents loans individually evaluated for impairment by class of loans as of December 31, 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 2,390 623 0 Commercial real estate and multi-family residential loans: Owner occupied loans 3,762 3,223 0 Nonowner occupied loans 4,894 4,898 0 Agri-business and agricultural loans: Loans secured by farmland 969 471 0 Consumer 1-4 family loans: Closed end first mortgage loans 45 45 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 1,318 1,318 535 Non-working capital loans 8,617 6,325 2,246 Commercial real estate and multi-family residential loans: Construction and land development loans 364 364 71 Owner occupied loans 949 949 232 Multifamily loans 389 389 162 Other commercial loans 12 12 5 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 1,695 1,629 331 Open end and junior lien loans 253 253 27 Other consumer loans 60 60 50 Total $25,737 $20,579 $3,659 The following table presents loans individually evaluated for impairment by class of loans as of and for the three-month period ended September 30, 2016: 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 $387 $8 $0 Non-working capital loans 1,473 8 5 Commercial real estate and multi-family residential loans: Construction and land development loans 275 0 0 Owner occupied loans 2,475 2 2 Nonowner occupied loans 4,690 88 88 Multifamily loans 17 0 0 Agri-business and agricultural loans: Loans secured by farmland 346 0 0 Loans for ag production 676 0 0 Other commercial loans 4 0 0 Consumer 1-4 family loans: Closed end first mortgage loans 82 0 0 Open end and junior lien loans 52 0 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 1,336 11 11 Non-working capital loans 4,538 35 33 Commercial real estate and multi-family residential loans: Construction and land development loans 55 1 3 Owner occupied loans 1,150 0 0 Multifamily loans 254 2 1 Other commercial loans 8 0 1 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 1,378 5 4 Open end and junior lien loans 247 0 0 Other consumer loans 57 1 1 Total $19,500 $161 $149 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 nine-month period ended September 30, 2016: 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 $300 $8 $8 Non-working capital loans 901 8 5 Commercial real estate and multi-family residential loans: Construction and land development loans 92 0 0 Owner occupied loans 2,578 2 2 Nonowner occupied loans 4,760 205 200 Multifamily loans 6 0 0 Agri-business and agricultural loans: Loans secured by farmland 429 0 0 Loans for ag production 902 5 4 Other commercial loans 1 0 0 Consumer 1-4 family loans: Closed end first mortgage loans 93 0 0 Open end and junior lien loans 17 0 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 1,176 21 21 Non-working capital loans 4,417 103 101 Commercial real estate and multi-family residential loans: Construction and land development loans 230 8 8 Owner occupied loans 1,023 0 0 Nonowner occupied loans 26 0 0 Multifamily loans 341 12 11 Other commercial loans 10 0 1 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 1,456 31 29 Open end and junior lien loans 221 0 0 Other consumer loans 58 3 3 Total $19,037 $406 $393 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 the aging of the recorded investment in past due loans as of September 30, 2016 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 $608,946 $0 $0 $441 $441 $609,387 Non-working capital loans 639,328 0 0 2,280 2,280 641,608 Commercial real estate and multi-family residential loans: Construction and land development loans 220,695 0 0 146 146 220,841 Owner occupied loans 464,521 242 0 3,513 3,755 468,276 Nonowner occupied loans 408,150 0 0 129 129 408,279 Multifamily loans 127,616 0 0 50 50 127,666 Agri-business and agricultural loans: Loans secured by farmland 152,447 0 0 283 283 152,730 Loans for agricultural production 156,833 0 0 0 0 156,833 Other commercial loans 89,835 0 0 12 12 89,847 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 160,080 1,280 6 242 1,528 161,608 Open end and junior lien loans 171,171 153 0 156 309 171,480 Residential construction loans 12,770 0 0 0 0 12,770 Other consumer loans 58,773 63 0 0 63 58,836 Total $3,271,165 $1,738 $6 $7,252 $8,996 $3,280,161 The following table presents the aging of the recorded investment in past due loans as of December 31, 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 $579,081 $350 $0 $913 $1,263 $580,344 Non-working capital loans 595,154 0 0 4,195 4,195 599,349 Commercial real estate and multi-family residential loans: Construction and land development loans 230,336 0 0 0 0 230,336 Owner occupied loans 407,229 310 0 4,172 4,482 411,711 Nonowner occupied loans 404,146 423 0 3,000 3,423 407,569 Multi-family loans 79,357 0 0 0 0 79,357 Agri-business and agricultural loans: Loans secured by farmland 163,911 0 0 471 471 164,382 Loans for agricultural production 141,706 90 0 0 90 141,796 Other commercial loans 85,071 0 0 0 0 85,071 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 156,525 1,187 0 49 1,236 157,761 Open end and junior lien loans 164,582 83 0 253 336 164,918 Residential construction loans 9,320 0 0 0 0 9,320 Other consumer loans 48,687 328 0 0 328 49,015 Total $3,065,105 $2,771 $0 $13,053 $15,824 $3,080,929 Troubled Debt Restructurings: Troubled debt restructured loans are included in the totals for impaired loans. The Company has allocated $2.9 million and $2.3 million of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of September 30, 2016 and December 31, 2015. The Company is not committed to lend additional funds to debtors whose loans have been modified in a troubled debt restructuring. September 30 December 31 (dollars in thousands) 2016 2015 Accruing troubled debt restructured loans $10,579 $6,260 Nonaccrual troubled debt restructured loans 5,885 10,914 Total troubled debt restructured loans $16,464 $17,174 During the period ended September 30, 2016, 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 three months ending September 30, 2016, there were renewal terms, which are considered additional concessions, offered to six borrowers under financial duress with previously identified troubled debt restructured loans which did not require additional compensation or consideration, and the terms offered would not have been readily available in the marketplace for loans bearing a similar risk profile. In these instances, it was determined that a concession had been granted. The loans to five of the borrowers were for commercial real estate buildings where the collateral value and cash flows from the companies occupying the buildings do not support the loans with recorded investments of $2,309,000. The loan to the other borrower was a commercial and industrial non-working capital loan with a recorded investment of $36,000. These concessions are not included in the table below. During the three months ended June 30, 2016, there were renewal terms, which are considered additional concessions, offered to three borrowers under financial duress with previously identified troubled debt restructured loans which did not require additional compensation or consideration, and the terms offered would not have been readily available in the marketplace for loans bearing a similar risk profile. In these instances, it was determined that a concession had been granted. The loan to one of the borrowers was for a commercial real estate building where the collateral value and cash flows from the company occupying the building does not support the loan with a recorded investment of $374,000. The loans to the other two borrowers are for commercial and industrial non-working capital loans with recorded investments of $574,000. These concessions are not included in the table below. Additional concessions were granted to borrowers with previously identified troubled debt restructured loans during the three-months ended March 31, 2016. The loans to two of the borrowers are for commercial real estate buildings where the collateral value and cash flows from the companies occupying the buildings do not support the loans with recorded investments of $542,000. The other loans were to a borrower engaged in land development, where the aggregate recorded investment totaled $484,000. These concessions are not included in the table below. The following table presents loans by class modified as new troubled debt restructurings that occurred during the three months ended September 30, 2016: 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 $1,066 $1,066 2 60-356 Total 2 $1,066 $1,066 2 60-356 The following table presents loans by class modified as new troubled debt restructurings that occurred during the nine months ended September 30, 2016: 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 5 $1,841 $1,842 5 9-356 Commercial real estate and multi- family residential loans: Owner occupied loans 2 640 640 2 13-15 Total 7 $2,481 $2,482 7 9-356 For the three month period ended September 30, 2016, the commercial and industrial troubled debt restructurings described above decreased the allowance for loan losses by $342,000 and the commercial real estate and multi-family residential loan troubled debt restructuring described above increased the allowance for loan losses by $111,000. For the nine month period ended September 30, 2016, the commercial and industrial troubled debt restructurings described above decreased the allowance for loan losses by $221,000 and the commercial real estate and multi-family residential loan troubled debt restructuring described above increased the allowance for loan losses by $126,000. No charge-offs resulted from any troubled debt restructurings described above during the three or nine month periods ended September 30, 2016. During the quarter ended 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 ended 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 ended March 31, 2015 one loan was modified as a troubled debt restructuring. 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 months ended September 30, 2015: 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 $65 1 208 Total 1 $65 $65 1 208 The following table presents loans by class modified as new troubled debt restructurings that occurred during the nine months ended September 30, 2015: 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 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 ended 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 ended 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 ended September 30, 2015. 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, 2016 and 2015. 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 or commercial loans with consumer characteristics included in groups of homogenous loans which are analyzed for credit quality indicators utilizing delinquency status. As of September 30, 2016, 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 $558,233 $25,740 $25,397 $0 $17 $609,387 Non-working capital loans 578,091 35,026 24,826 0 3,665 641,608 Commercial real estate and multi- family residential loans: Construction and land development loans 219,668 1,027 146 0 0 220,841 Owner occupied loans 442,334 10,656 15,286 0 0 468,276 Nonowner occupied loans 403,450 2,723 2,106 0 0 408,279 Multifamily loans 127,615 0 51 0 0 127,666 Agri-business and agricultural loans: Loans secured by farmland 149,446 3,001 283 0 0 152,730 Loans for agricultural production 153,679 3,154 0 0 0 156,833 Other commercial loans 89,830 0 12 0 5 89,847 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 48,575 126 1,367 0 111,540 161,608 Open end and junior lien loans 6,542 0 0 0 164,938 171,480 Residential construction loans 0 0 0 0 12,770 12,770 Other consumer loans 15,176 0 56 0 43,604 58,836 Total $2,792,639 $81,453 $69,530 $0 $336,539 $3,280,161 As of December 31, 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 $538,899 $32,601 $8,844 $0 $0 $580,344 Non-working capital loans 549,771 35,910 10,566 0 3,102 599,349 Commercial real estate and multi- family residential loans: Construction and land development loans 227,996 2,340 0 0 0 230,336 Owner occupied loans 378,847 23,522 9,342 0 0 411,711 Nonowner occupied loans 394,387 10,953 2,229 0 0 407,569 Multi-family loans 78,968 0 389 0 0 79,357 Agri-business and agricultural loans: Loans secured by farmland 163,911 0 471 0 0 164,382 Loans for agricultural production 141,796 0 0 0 0 141,796 Other commercial loans 85,056 0 12 0 3 85,071 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 43,231 126 1,769 0 112,635 157,761 Open end and junior lien loans 8,373 0 1,616 0 154,929 164,918 Residential construction loans 0 0 0 0 9,320 9,320 Other consumer loans 13,940 0 60 0 35,015 49,015 Total $2,625,175 $105,452 $35,298 $0 $315,004 $3,080,929 |