The Corporation’s primary lending focus is small business and middle market commercial, commercial real estate and residential real estate, which results in portfolio diversification. The following tables show the composition of the loan portfolio, the allowance for loan losses and credit quality characteristics by collateral classification, excluding loans held for sale. Loans held for sale as of June 30, 2019, and December 31, 2018, were $5,854,000 and $4,778,000, respectively.



	June 30, 2019			December 31, 2018
Commercial and industrial loans	$	1,877,042		$	1,726,664
Agricultural production financing and other loans to farmers	83,452			92,404
Real estate loans:
Construction	624,548			545,729
Commercial and farmland	2,821,689			2,832,102
Residential	993,802			966,421
Home equity	548,006			528,157
Individuals' loans for household and other personal expenditures	98,384			99,788
Public finance and other commercial loans	464,447			433,202
Loans	$	7,511,370		$	7,224,467
Allowance for loan losses	(81,274		)	(80,552		)
Net Loans	$	7,430,096		$	7,143,915

The Corporation maintains an allowance for loan losses to cover probable credit losses identified during its loan review process. Management believes the allowance for loan losses is adequate to cover probable losses inherent in the loan portfolio at June 30, 2019. The process for determining the adequacy of the allowance for loan losses is critical to the Corporation’s financial results. It requires management to make difficult, subjective and complex judgments to estimate the effect of uncertain matters. The allowance for loan losses considers current factors, including economic conditions and ongoing internal and external examinations, and will increase or decrease as deemed necessary to ensure it remains adequate. In addition, the allowance as a percentage of charge-offs and nonperforming loans will change at different points in time based on credit performance, portfolio mix and collateral values.

The allowance for loan losses is maintained through the provision for loan losses, which is a charge against earnings. The allowance is increased by provision expense and decreased by charge-offs less recoveries. All charge-offs are approved by the Bank's senior credit officers and in accordance with established policies. The Bank charges off a loan when a determination is made that all or a portion of the loan is uncollectable. The amount provided for loan losses in a given period may be greater than or less than net loan losses experienced during the period, and is based on management’s judgment as to the appropriate level of the allowance for loan losses. The determination of the provision amount is based on management’s ongoing review and evaluation of the loan portfolio, including an internally administered loan "watch" list and independent loan reviews. The evaluation takes into consideration identified credit problems, the possibility of losses inherent in the loan portfolio that are not specifically identified and management’s judgment as to the impact of the current environment and economic conditions on the portfolio.

The allowance consists of specific impairment reserves as required by ASC 310-10-35, a component for historical losses in accordance with ASC 450 and the consideration of current environmental factors in accordance with ASC 450. A loan is deemed impaired when, based on current information or events, it is probable that all amounts due of principal and interest according to the contractual terms of the loan agreement will not be collected.

The historical loss allocation for loans not deemed impaired according to ASC 450 is the product of the volume of loans within the non-impaired criticized and non-criticized risk grade classifications, each segmented by call code, and the historical loss factor for each respective classification and call code segment. The historical loss factors are based upon actual loss experience within each risk and call code classification. The historical look back period for non-criticized loans looks to the most recent rolling-four-quarter average and aligns with the look back period for non-impaired criticized loans. Each of the rolling four quarter periods used to obtain the average, include all charge-offs for the previous twelve-month period, therefore the historical look back period includes seven quarters. The resulting allocation is reflective of current conditions. Criticized loans are grouped based on the risk grade assigned to the loan. Loans with a special mention grade but not impaired are assigned a loss factor, and loans with a classified grade but not impaired are assigned a separate loss factor. The loss factor computation for this allocation includes a segmented historical loss migration analysis of risk grades to charge-off.

In addition to the specific reserves and historical loss components of the allowance, consideration is given to various environmental factors to ensure that losses inherent in the portfolio are reflected in the allowance for loan losses. The environmental component adjusts the historical loss allocations for non-impaired loans to reflect relevant current conditions that, in management's opinion, have an impact on loss recognition. Environmental factors that management reviews in the analysis include: national and local economic trends and conditions; trends in growth in the loan portfolio and growth in higher risk areas; levels of, and trends in, delinquencies and non-accruals; experience and depth of lending management and staff; adequacy of, and adherence to, lending policies and procedures including those for underwriting; industry concentrations of credit; and adequacy of risk identification systems and controls through the internal loan review and internal audit processes.

In conformance with ASC 805 and ASC 820, purchased loans are recorded at the acquisition date fair value. Such loans are included in the allowance to the extent a specific impairment is identified that exceeds the fair value adjustment on an impaired loan or the historical loss and environmental factor analysis indicates losses inherent in a purchased portfolio exceeds the fair value adjustment on the portion of the purchased portfolio not deemed impaired.



	Three Months Ended June 30, 2019
	Commercial			Commercial Real Estate			Consumer			Residential			Total
Allowance for loan losses:
Balances, March 31, 2019	$	33,069		$	29,434		$	4,026		$	14,373		$	80,902
Provision for losses	100			320			36			44			500
Recoveries on loans	344			778			100			212			1,434
Loans charged off	(311		)	(1,001		)	(92		)	(158		)	(1,562		)
Balances, June 30, 2019	$	33,202		$	29,531		$	4,070		$	14,471		$	81,274



	Six Months Ended June 30, 2019
	Commercial			Commercial Real Estate			Consumer			Residential			Total
Allowance for loan losses:
Balances, December 31, 2018	$	32,657		$	29,609		$	3,964		$	14,322		$	80,552
Provision for losses	336			1,089			141			134			1,700
Recoveries on loans	886			1,023			218			312			2,439
Loans charged off	(677		)	(2,190		)	(253		)	(297		)	(3,417		)
Balances, June 30, 2019	$	33,202		$	29,531		$	4,070		$	14,471		$	81,274



	Three Months Ended June 30, 2018
	Commercial			Commercial Real Estate			Consumer			Residential			Total
Allowance for loan losses:
Balances, March 31, 2018	$	30,770		$	27,705		$	3,896		$	14,049		$	76,420
Provision for losses	471			954			60			178			1,663
Recoveries on loans	1,283			1,213			98			596			3,190
Loans charged off	(1,057		)	(2,141		)	(133		)	(399		)	(3,730		)
Balances, June 30, 2018	$	31,467		$	27,731		$	3,921		$	14,424		$	77,543



	Six Months Ended June 30, 2018
	Commercial			Commercial Real Estate			Consumer			Residential			Total
Allowance for loan losses:
Balances, December 31, 2017	$	30,420		$	27,343		$	3,732		$	13,537		$	75,032
Provision for losses	1,311			1,038			334			1,480			4,163
Recoveries on loans	1,402			1,552			187			750			3,891
Loans charged off	(1,666		)	(2,202		)	(332		)	(1,343		)	(5,543		)
Balances, June 30, 2018	$	31,467		$	27,731		$	3,921		$	14,424		$	77,543



	June 30, 2019
	Commercial		Commercial Real Estate		Consumer		Residential		Total
Allowance Balances:
Individually evaluated for impairment	$	1,849	$	14	$	1	$	432	$	2,296
Collectively evaluated for impairment	31,353		29,517		4,069		14,039		78,978
Total Allowance for Loan Losses	$	33,202	$	29,531	$	4,070	$	14,471	$	81,274
Loan Balances:
Individually evaluated for impairment	$	5,090	$	14,419	$	14	$	2,450	$	21,973
Collectively evaluated for impairment	2,418,481		3,419,930		98,370		1,538,533		7,475,314
Loans acquired with deteriorated credit quality	1,370		11,888		—		825		14,083
Loans	$	2,424,941	$	3,446,237	$	98,384	$	1,541,808	$	7,511,370



	December 31, 2018
	Commercial		Commercial Real Estate		Consumer		Residential		Total
Allowance Balances:
Individually evaluated for impairment	$	—	$	1,435	$	1	$	436	$	1,872
Collectively evaluated for impairment	32,657		28,174		3,963		13,886		78,680
Total Allowance for Loan Losses	$	32,657	$	29,609	$	3,964	$	14,322	$	80,552
Loan Balances:
Individually evaluated for impairment	$	1,838	$	17,756	$	18	$	2,413	$	22,025
Collectively evaluated for impairment	2,248,330		3,347,686		99,770		1,490,872		7,186,658
Loans acquired with deteriorated credit quality	2,102		12,389		—		1,293		15,784
Loans	$	2,252,270	$	3,377,831	$	99,788	$	1,494,578	$	7,224,467

Loans individually evaluated for impairment are comprised of commercial and consumer loans deemed impaired in accordance with ASC 310-10. This includes loans acquired with deteriorated credit quality totaling $1,824,000 with $329,000 of related allowance for loan losses at June 30, 2019 and $1,541,000 with no related allowance for loan losses at December 31, 2018.

Commercial lending is primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the tangible assets being financed such as equipment or real estate or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. Other loans may be unsecured, secured but under-collateralized or otherwise made on the basis of the enterprise value of an organization. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers.

These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. Management monitors and evaluates commercial real estate loans based on collateral and risk grade criteria. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans.

With respect to residential loans that are secured by 1-4 family residences and are typically owner occupied, the Corporation generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are secured by a subordinate interest in 1-4 family residences, and consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans are unsecured such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment on loans secured by 1-4 family residences can be impacted by changes in property values. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.

Loans are reclassified to a non-accruing status when, in management’s judgment, the collateral value and financial condition of the borrower do not justify accruing interest. When the interest accrual is discontinued, all unpaid accrued interest is reversed against earnings when considered uncollectable. Payments subsequently received on non-accrual loans are applied to principal. A loan is returned to accrual status when principal and interest are no longer past due and collectability is probable, typically after a minimum of six consecutive months of performance. Payments received on impaired accruing or delinquent loans are applied to interest income as accrued.



	June 30, 2019		December 31, 2018
Commercial and industrial loans	$	2,770	$	1,803
Agriculture production financing and other loans to farmers	2,785		679
Real estate loans:
Construction	6,918		8,667
Commercial and farmland	6,340		8,156
Residential	4,579		4,966
Home equity	1,826		1,481
Individuals' loans for household and other personal expenditures	64		42
Public finance and other commercial loans	353		354
Total	$	25,635	$	26,148

Allowable methods for determining the amount of impairment include estimating fair value using the fair value of the collateral for collateral dependent loans. If the impaired loan is identified as collateral dependent, then the fair value method for measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor, which includes selling costs if applicable, to the value. The fair value of real estate is generally based on appraisals by qualified licensed appraisers. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a cash flow analysis. Fair value on other collateral such as business assets is typically ascertained by assessing, either singularly or some combination of, asset appraisals, accounts receivable aging reports, inventory listings and or customer financial statements. Both appraised values and values based on borrower’s financial information are discounted as considered appropriate based on age and quality of the information and current market conditions.



	June 30, 2019
	Unpaid Principal Balance		Recorded Investment		Related Allowance
Impaired loans with no related allowance:
Commercial and industrial loans	$	1,048	$	1,012	$	—
Agriculture production financing and other loans to farmers	679		668		—
Real estate Loans:
Construction	7,978		6,909		—
Commercial and farmland	10,160		7,381		—
Residential	117		99		—
Home equity	49		49		—
Public finance and other commercial loans	353		353		—
Total	$	20,384	$	16,471	$	—
Impaired loans with related allowance:
Commercial and industrial loans	$	1,185	$	940	$	455
Agriculture production financing and other loans to farmers	$	2,167	$	2,117	$	1,394
Real estate Loans:
Commercial and farmland	134		129		14
Residential	1,976		1,953		362
Home equity	366		349		70
Individuals' loans for household and other personal expenditures	14		14		1
Total	$	5,842	$	5,502	$	2,296
Total Impaired Loans	$	26,226	$	21,973	$	2,296



	December 31, 2018
	Unpaid Principal Balance		Recorded Investment		Related Allowance
Impaired loans with no related allowance:
Commercial and industrial loans	$	828	$	806	$	—
Agriculture production financing and other loans to farmers	679		679		—
Real estate Loans:
Construction	1,352		614		—
Commercial and farmland	11,176		8,994		—
Residential	118		100		—
Home equity	49		48		—
Public finance and other commercial loans	353		353		—
Total	$	14,555	$	11,594	$	—
Impaired loans with related allowance:
Real estate Loans:
Construction	$	7,978	$	7,977	$	1,429
Commercial and farmland	171		171		6
Residential	1,958		1,907		362
Home equity	376		358		74
Individuals' loans for household and other personal expenditures	18		18		1
Total	$	10,501	$	10,431	$	1,872
Total Impaired Loans	$	25,056	$	22,025	$	1,872



	Three Months Ended June 30, 2019				Six Months Ended June 30, 2019
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired loans with no related allowance:
Commercial and industrial loans	$	1,013	$	—	$	1,021	$	—
Agriculture production financing and other loans to farmers	668		—		672		—
Real estate Loans:
Construction	7,314		—		7,792		—
Commercial and farmland	7,998		39		8,187		78
Residential	38		1		38		2
Home equity	49		—		49		—
Public finance and other commercial loans	353		—		353		—
Total	$	17,433	$	40	$	18,112	$	80
Impaired loans with related allowance:
Commercial and industrial loans	$	940	$	—	$	940	$	—
Agriculture production financing and other loans to farmers	2,117		—		2,134		—
Real estate Loans:
Commercial and farmland	157		—		164		—
Residential	2,021		16		2,029		32
Home equity	351		3		352		6
Individuals' loans for household and other personal expenditures	14		—		15		—
Total	$	5,600	$	19	$	5,634	$	38
Total Impaired Loans	$	23,033	$	59	$	23,746	$	118



	Three Months Ended June 30, 2018				Six Months Ended June 30, 2018
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired loans with no related allowance:
Commercial and industrial loans	$	1,004	$	—	$	1,006	$	—
Agriculture production financing and other loans to farmers	640		—		640		—
Real estate Loans:
Construction	1,106		—		1,167		—
Commercial and farmland	9,935		40		10,241		87
Residential	63		1		63		2
Individuals' loans for household and other personal expenditures	10		—		11		—
Public finance and other commercial loans	—		—		—		—
Total	$	12,758	$	41	$	13,128	$	89
Impaired loans with related allowance:
Commercial and industrial loans	$	108	$	—	$	108	$	—
Real estate Loans:
Residential	1,714		12		1,726		24
Home equity	302		2		303		5
Total	$	2,124	$	14	$	2,137	$	29
Total Impaired Loans	$	14,882	$	55	$	15,265	$	118

As part of the ongoing monitoring of the credit quality of the Corporation's loan portfolio, management tracks certain credit quality indicators including trends related to: (i) the level of criticized commercial loans, (ii) net charge-offs, (iii) non-performing loans, (iv) covenant failures and (v) the general national and local economic conditions.

The Corporation utilizes a risk grading of pass, special mention, substandard, doubtful and loss to assess the overall credit quality of large commercial loans. All large commercial credit grades are reviewed at a minimum of once a year for pass grade loans. Loans with grades below pass are reviewed more frequently depending on the grade. A description of the general characteristics of these grades is as follows:



	o	the Corporation is forced into a subordinated or unsecured position due to flaws in documentation,



	o	loans have been restructured so that payment schedules, terms and collateral represent concessions to the borrower when compared to the normal loan terms,

The following tables summarize the credit quality of the Corporation’s loan portfolio, by loan class for the periods indicated. Consumer non-performing loans include accruing consumer loans 90-days or more delinquent and consumer non-accrual loans. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified date. Loans that evidenced deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected are included in the applicable categories below.



	June 30, 2019
	Commercial Pass		Commercial Special Mention		Commercial Substandard		Commercial Doubtful		Commercial Loss		Consumer Performing		Consumer Non-Performing		Total
Commercial and industrial loans	$	1,781,040	$	53,407	$	42,266	$	329	$	—	$	—	$	—	$	1,877,042
Agriculture production financing and other loans to farmers	67,837		5,478		10,137		—		—		—		—		83,452
Real estate Loans:
Construction	591,962		1,444		7,712		—		—		23,430				624,548
Commercial and farmland	2,645,338		79,586		94,179		450		—		2,136		—		2,821,689
Residential	156,622		5,833		3,425		—		—		823,309		4,613		993,802
Home equity	27,324		585		758		—		—		517,620		1,719		548,006
Individuals' loans for household and other personal expenditures	—		—		—		—		—		98,320		64		98,384
Public finance and other commercial loans	464,094		—		353		—		—		—		—		464,447
Loans	$	5,734,217	$	146,333	$	158,830	$	779	$	—	$	1,464,815	$	6,396	$	7,511,370



	December 31, 2018
	Commercial Pass		Commercial Special Mention		Commercial Substandard		Commercial Doubtful		Commercial Loss		Consumer Performing		Consumer Non-Performing		Total
Commercial and industrial loans	$	1,660,879	$	23,246	$	42,539	$	—	$	—	$	—	$	—	$	1,726,664
Agriculture production financing and other loans to farmers	78,446		5,966		7,992		—		—		—		—		92,404
Real estate Loans:
Construction	492,358		2,185		24,224		—		—		25,419		1,543		545,729
Commercial and farmland	2,669,491		76,037		84,288		—		—		2,285		1		2,832,102
Residential	170,075		7,373		2,076		—		—		782,080		4,817		966,421
Home equity	24,653		535		457		—		—		500,996		1,516		528,157
Individuals' loans for household and other personal expenditures	—		—		—		—		—		99,741		47		99,788
Public finance and other commercial loans	432,849		—		353		—		—		—		—		433,202
Loans	$	5,528,751	$	115,342	$	161,929	$	—	$	—	$	1,410,521	$	7,924	$	7,224,467



	June 30, 2019
	Current		30-59 Days Past Due		60-89 Days Past Due		Loans 90 Days or More Past Due And Accruing		Non-Accrual		Total Past Due & Non-Accrual		Total
Commercial and industrial loans	$	1,874,004	$	248	$	20	$	—	$	2,770	$	3,038	$	1,877,042
Agriculture production financing and other loans to farmers	80,634		33		—		—		2,785		2,818		83,452
Real estate loans:
Construction	617,519		111		—		—		6,918		7,029		624,548
Commercial and farmland	2,808,422		6,751		176		—		6,340		13,267		2,821,689
Residential	984,086		4,540		422		175		4,579		9,716		993,802
Home equity	544,338		1,308		500		34		1,826		3,668		548,006
Individuals' loans for household and other personal expenditures	97,826		407		87		—		64		558		98,384
Public finance and other commercial loans	464,094		—		—		—		353		353		464,447
Loans	$	7,470,923	$	13,398	$	1,205	$	209	$	25,635	$	40,447	$	7,511,370



	December 31, 2018
	Current		30-59 Days Past Due		60-89 Days Past Due		Loans 90 Days or More Past Due And Accruing		Non-Accrual		Total Past Due & Non-Accrual		Total
Commercial and industrial loans	$	1,723,337	$	1,093	$	182	$	249	$	1,803	$	3,327	$	1,726,664
Agriculture production financing and other loans to farmers	89,440		2,285		—		—		679		2,964		92,404
Real estate loans:
Construction	535,520		64		—		1,478		8,667		10,209		545,729
Commercial and farmland	2,822,515		1,253		178		—		8,156		9,587		2,832,102
Residential	959,252		1,756		430		17		4,966		7,169		966,421
Home equity	524,198		2,164		207		107		1,481		3,959		528,157
Individuals' loans for household and other personal expenditures	99,499		179		64		4		42		289		99,788
Public finance and other commercial loans	432,848		—		—		—		354		354		433,202
Loans	$	7,186,609	$	8,794	$	1,061	$	1,855	$	26,148	$	37,858	$	7,224,467

On occasion, borrowers experience declines in income and cash flow. As a result, these borrowers seek to reduce contractual cash outlays including debt payments. Concurrently, in an effort to preserve and protect its earning assets, specifically troubled loans, the Corporation works to maintain its relationship with certain customers who are experiencing financial difficulty by contractually modifying the borrower's debt agreement with the Corporation. In certain loan restructuring situations, the Corporation may grant a concession to a debtor experiencing financial difficulty, resulting in a trouble debt restructuring. A concession is deemed to be granted when, as a result of the restructuring, the Corporation does not expect to collect all original amounts due, including interest accrued at the original contract rate. If the payment of principal at original maturity is primarily dependent on the value of collateral, the current value of the collateral is considered in determining whether the principal will be paid.



	Three Months Ended June 30, 2019					Six Months Ended June 30, 2019
	Pre-Modification Recorded Balance		Post-Modification Recorded Balance		Number of Loans	Pre-Modification Recorded Balance		Post-Modification Recorded Balance		Number of Loans
Real estate loans:
Residential	$	171	$	164	4	$	261	$	254	5
Total	$	171	$	164	4	$	261	$	254	5



	Three Months Ended June 30, 2018					Six Months Ended June 30, 2018
	Pre-Modification Recorded Balance		Post-Modification Recorded Balance		Number of Loans	Pre-Modification Recorded Balance		Post-Modification Recorded Balance		Number of Loans
Real estate loans:
Residential	$	122	$	125	2	$	336	$	347	7
Home equity	—		—		—	16		16		2
Individuals' loans for household and other personal expenditures	—		—		—	7		8		1
Total	$	122	$	125	2	$	359	$	371	10



	Six Months Ended June 30, 2018
	Term Modification		Rate Modification		Combination		Total Modification
Real estate loans:
Residential	$	37	$	163	$	139	$	339
Home equity	60		10		—		70
Individuals' loans for household and other personal expenditures	—		7		—		7
Total	$	97	$	180	$	139	$	416

Loans secured by residential real estate made up 100 percent of the post-modification balance of troubled debt restructured loans made in the three and six months ended June 30, 2019. The same loan classification made up 100 percent of the post-modification balance of troubled debt restructured loans made in the three months ended June 30, 2018.

The following tables summarize troubled debt restructures that occurred during the twelve months ended June 30, 2019 and 2018, that subsequently defaulted during the period indicated and remained in default at period end. A loan is considered in default if it is 30-days or more past due.



	Three Months Ended June 30, 2019			Six Months Ended June 30, 2019
	Number of Loans	Recorded Balance		Number of Loans	Recorded Balance
Real estate loans:
Residential	1	$	62	1	$	62
Total	1	$	62	1	$	62



	Three Months Ended June 30, 2018			Six Months Ended June 30, 2018
	Number of Loans	Recorded Balance		Number of Loans	Recorded Balance
Real estate loans:
Commercial and farmland	—	—		1	$	272
Residential	2	$	132	3	190
Total	2	$	132	4	$	462

For potential consumer loan restructures, impairment evaluation occurs prior to modification. Any subsequent impairment is typically addressed through the charge-off process, or may be addressed through a specific reserve. Consumer troubled debt loan restructures are generally included in the general historical allowance for loan loss at the post modification balance. Consumer non-accrual and delinquent troubled debt loan restructures are also considered in the calculation of the non-accrual and delinquency trend environmental allowance allocation. Consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $777,000 and $800,000 at June 30, 2019 and December 31, 2018, respectively.

Commercial troubled debt restructured loans risk graded special mention, substandard, doubtful and loss are individually evaluated for impairment under ASC 310. Any resulting specific reserves are included in the allowance for loan losses. Commercial troubled debt loan restructures 30-89 days delinquent are included in the calculation of the delinquency trend environmental allocation in the allowance for loan losses. With the exception of the acquired loans excluded from the allowance for loan losses, all commercial non-impaired loans, including non-accrual and 90-days or more delinquent, are included in the ASC 450 loss estimate.