The following table presents the activity of the allowance for loan losses by portfolio segment for the three months

ended September 30.



Allowance for Loan Losses:	September 30, 2015
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated			Total
Beginning balance	$	10,931		$	1,760		$	4,678		$	2,492		$	19,861
Provision for loan losses	1,338			158			1,052			(1,498		)	1,050
Loans charged -off	(1,874		)	(220		)	(1,201		)	—			(3,295		)
Recoveries	1,694			196			419			—			2,309
Ending Balance	$	12,089		$	1,894		$	4,948		$	994		$	19,925



Allowance for Loan Losses:	September 30, 2014
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated			Total
Beginning balance	$	10,850		$	1,374		$	3,769		$	2,262		$	18,255
Provision for loan losses*	589			72			1,047			(178		)	1,530
Loans charged -off	(1,310		)	(153		)	(1,193		)	—			(2,656		)
Recoveries	51			34			293			—			378
Ending Balance	$	10,180		$	1,327		$	3,916		$	2,084		$	17,507

* Provision before decrease of $24 thousand in 2014 for increase in FDIC indemnification asset

The following table presents the activity of the allowance for loan losses by portfolio segment for the nine months

ended September 30



Allowance for Loan Losses:	September 30, 2015
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated			Total
Beginning balance	$	10,915		$	1,374		$	4,370		$	2,180		$	18,839
Provision for loan losses	1,505			811			2,520			(1,186		)	3,650
Loans charged -off	(2,482		)	(626		)	(3,489		)	—			(6,597		)
Recoveries	2,151			335			1,547			—			4,033
Ending Balance	$	12,089		$	1,894		$	4,948		$	994		$	19,925



Allowance for Loan Losses:	September 30, 2014
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated			Total
Beginning balance	$	12,450		$	1,585		$	3,650		$	2,383		$	20,068
Provision for loan losses*	270			84			2,380			(299		)	2,435
Loans charged -off	(2,956		)	(958		)	(3,228		)	—			(7,142		)
Recoveries	416			616			1,114			—			2,146
Ending Balance	$	10,180		$	1,327		$	3,916		$	2,084		$	17,507

* Provision before increase of $675 thousand in 2014 for decrease in FDIC indemnification asset

The following table presents the allocation of the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method at September 30, 2015 and December 31, 2014.



Allowance for Loan Losses	September 30, 2015
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Individually evaluated for impairment	$	996	$	232	$	—	$	—	$	1,228
Collectively evaluated for impairment	10,902		1,662		4,948		994		18,506
Acquired with deteriorated credit quality	191		—		—		—		191
Ending Balance	$	12,089	$	1,894	$	4,948	$	994	$	19,925



Loans:	September 30, 2015
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
Individually evaluated for impairment	$	9,648	$	934	$	—	$	10,582
Collectively evaluated for impairment	1,032,992		450,198		273,436		1,756,626
Acquired with deteriorated credit quality	4,194		1,586		—		5,780
Ending Balance	$	1,046,834	$	452,718	$	273,436	$	1,772,988



Allowance for Loan Losses:	December 31, 2014
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Individually evaluated for impairment	1,911		—		—		—		1,911
Collectively evaluated for impairment	8,733		1,365		4,370		2,180		16,648
Acquired with deteriorated credit quality	271		9		—		—		280
Ending Balance	$	10,915	$	1,374	$	4,370	$	2,180	$	18,839



Loans	December 31, 2014
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
Individually evaluated for impairment	14,573		33		—		14,606
Collectively evaluated for impairment	1,030,949		468,872		267,880		1,767,701
Acquired with deteriorated credit quality	4,887		1,631		—		6,518
Ending Balance	$	1,050,409	$	470,536	$	267,880	$	1,788,825

The following tables present loans individually evaluated for impairment by class of loans.



					September 30, 2015
	Unpaid Principal		Recorded		Allowance for Loan Losses		Average Recorded		Interest Income		Cash Basis Interest
(Dollar amounts in thousands)	Balance		Investment		Allocated		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	1,565	$	1,272	$	—	$	1,939	$	—	$	—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	3,243		3,243		—		1,800		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	1,776		1,776		—		1,029		—		—
Residential
First Liens	30		30		—		15		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	1,618		1,618		278		4,080		—		—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	1,506		1,506		718		4,248		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	233		233		—		548		—		—
Residential
First Liens	904		904		232		357		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	10,875	$	10,582	$	1,228	$	14,016	$	—	$	—



					December 31, 2014
	Unpaid Principal		Recorded		Allowance for Loan Losses		Average Recorded		Interest Income		Cash Basis Interest Income
(Dollar amounts in thousands)	Balance		Investment		Allocated		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	1,200	$	926	$	—	$	2,589	$	—	$	—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	—		—		—		58		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	292		292		—		58		—		—
Residential
First Liens	—		—		—		5		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	7,388		5,874		1,056		6,177		—		—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	6,654		6,654		753		6,698		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	827		827		102		1,112		—		—
Residential
First Liens	33		33		—		35		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	16,394	$	14,606	$	1,911	$	16,732	$	—	$	—



	Three Months Ended September 30, 2015						Nine Months Ended September 30, 2015
	Average Recorded		Interest Income		Cash Basis Interest Income		Average Recorded		Interest Income		Cash Basis Interest Income
(Dollar amounts in thousands)	Investment		Recognized		Recognized		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	3,290	$	—	$	—	$	1,939	$	—	$	—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	3,599		—		—		1,800		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	1,785		—		—		1,029		—		—
Residential
First Liens	31		—		—		15		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	1,714		—		—		4,080		—		—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	1,929		—		—		4,248		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	393		—		—		548		—		—
Residential
First Liens	565		—		—		357		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	13,306	$	—	$	—	$	14,016	$	—	$	—



	Three Months Ended September 30, 2014						Nine Months Ended September 30, 2014
	Average Recorded		Interest Income		Cash Basis Interest Income		Average Recorded		Interest Income		Cash Basis Interest Income
(Dollar amounts in thousands)	Investment		Recognized		Recognized		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	4,103	$	—	$	—	$	3,005	$	—	$	—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	42		—		—		73		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	—		—		—		—		—		—
Residential
First Liens	12		—		—		6		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	4,420		—		—		6,253		—		—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	6,677		—		—		6,709		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	1,322		—		—		1,184		—		—
Residential
First Liens	35		—		—		36		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	16,611	$	—	$	—	$	17,266	$	—	$	—

The tables below presents the recorded investment in non-performing loans.



	September 30, 2015
	Loans Past Due Over 90 Day Still		Troubled Debt
(Dollar amounts in thousands)	Accruing		Accruing		Nonaccrual		Nonaccrual
Commercial
Commercial & Industrial	$	—	$	5	$	430	$	3,943
Farmland	—		—		—		385
Non Farm, Non Residential	—		7		3,190		2,666
Agriculture	588		—		—		289
All Other Commercial	—		—		—		1,993
Residential
First Liens	798		4,558		995		5,062
Home Equity	62		—		—		295
Junior Liens	13		—		—		230
Multifamily	—		—		—		—
All Other Residential	—		—		—		115
Consumer
Motor Vehicle	234		181		11		150
All Other Consumer	6		40		423		984
TOTAL	$	1,701	$	4,791	$	5,049	$	16,112



	December 31, 2014
	Loans Past Due Over 90 Day Still		Troubled Debt
(Dollar amounts in thousands)	Accruing		Accruing		Nonaccrual		Nonaccrual
Commercial
Commercial & Industrial	$	—	$	7	$	4,961	$	3,720
Farmland	—		—		—		79
Non Farm, Non Residential	—		10		3,987		3,388
Agriculture	—		—		—		767
All Other Commercial	—		—		—		1,258
Residential
First Liens	603		4,357		842		3,861
Home Equity	88		—		—		404
Junior Liens	12		—		—		275
Multifamily	—		—		—		—
All Other Residential	5		—		—		111
Consumer
Motor Vehicle	162		257		83		210
All Other Consumer	3		1		269		961
TOTAL	$	873	$	4,632	$	10,142	$	15,034

There are $184 thousand loans covered by loss share agreements with the FDIC included in loans past due over 90 days still on accrual at September 30, 2015 and there were $37 thousand at December 31, 2014. There were $242 thousand of covered loans included in non-accrual loans at September 30, 2015 and there were $274 thousand at December 31, 2014. There were no covered loans at September 30, 2015 or December 31, 2014 that were deemed impaired.

Non-performing loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

The following tables presents the aging of the recorded investment in loans by past due category and class of loans.



	September 30, 2015
	30-59 Days		60-89 Days		Greater than 90 days		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	190	$	321	$	1,825	$	2,336	$	474,550	$	476,886
Farmland	25		567		—		592		103,759		104,351
Non Farm, Non Residential	157		—		321		478		211,797		212,275
Agriculture	306		368		615		1,289		130,491		131,780
All Other Commercial	54		—		148		202		121,340		121,542
Residential
First Liens	1,083		813		1,723		3,619		298,948		302,567
Home Equity	154		61		161		376		37,837		38,213
Junior Liens	306		87		187		580		30,602		31,182
Multifamily	—		—		—		—		71,916		71,916
All Other Residential	—		—		—		—		8,840		8,840
Consumer
Motor Vehicle	2,619		495		251		3,365		247,719		251,084
All Other Consumer	94		49		6		149		22,203		22,352
TOTAL	$	4,988	$	2,761	$	5,237	$	12,986	$	1,760,002	$	1,772,988



	December 31, 2014
	30-59 Days		60-89 Days		Greater than 90 days		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	574	$	416	$	3,046	$	4,036	$	451,549	$	455,585
Farmland	—		—		—		—		95,452		95,452
Non Farm, Non Residential	1,528		68		202		1,798		232,440		234,238
Agriculture	246		18		502		766		149,099		149,865
All Other Commercial	255		—		—		255		115,014		115,269
Residential
First Liens	6,011		963		1,522		8,496		308,068		316,564
Home Equity	141		33		310		484		40,043		40,527
Junior Liens	270		83		217		570		31,487		32,057
Multifamily	—		—		—		—		72,310		72,310
All Other Residential	112		—		5		117		8,961		9,078
Consumer
Motor Vehicle	3,026		557		180		3,763		242,406		246,169
All Other Consumer	114		7		3		124		21,587		21,711
TOTAL	$	12,277	$	2,145	$	5,987	$	20,409	$	1,768,416	$	1,788,825

During the three and nine months ended September 30, 2015 and 2014, the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDR's.



			2015
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
July 1,	8,705		5,589		657		14,951
Added	—		16		50		66
Charged Off	—		—		(4	)	(4	)
Payments	(5,081	)	(63	)	(41	)	(5,185	)
September 30,	3,624		5,542		662		9,828



			2015
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
January 1,	8,955		5,189		614		14,758
Added	—		668		239		907
Charged Off	—		(62	)	(44	)	(106	)
Payments	(5,331	)	(253	)	(147	)	(5,731	)
September 30,	3,624		5,542		662		9,828



			2014
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
July 1,	9,206		4,956		559		14,721
Added	—		340		115		455
Charged Off	—		(67	)	(24	)	(91	)
Payments	(122	)	(124	)	(81	)	(327	)
September 30,	9,084		5,105		569		14,758



			2014
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
January 1,	12,327		4,330		644		17,301
Added	441		1,141		213		1,795
Charged Off	(1,069	)	(67	)	(63	)	(1,199	)
Payments	(2,615	)	(299	)	(225	)	(3,139	)
September 30,	9,084		5,105		569		14,758

Modification of the terms of such loans typically include one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. No modification in 2015 or 2014 resulted in the permanent reduction of the recorded investment in the loan. Modifications involving a reduction of the stated interest rate of the loan were for periods ranging from twelve months to five years. Modifications involving an extension of the maturity date were for periods ranging from twelve months to ten years. Troubled debt restructurings during the three and nine months ended September 30, 2015 and 2014 did not result in any material charge-offs or additional provision expense.

The Corporation has allocated $36 thousand and $81 thousand of specific reserves to customers whose loan terms have been modified in troubled debt restructurings at both September 30, 2015 and 2014, respectively. The Corporation has not committed to lend additional amounts as of September 30, 2015 and 2014 to customers with outstanding loans that are classified as troubled debt restructurings. The charge-offs during the three and nine months ended September 30, 2015 and 2014 were not of any restructurings that had taken place in the previous 12 months.

Credit Quality Indicators:

The Corporation categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes loans individually by classifying the loans as to credit risk. This analysis includes non-homogeneous loans, such as commercial loans, with an outstanding balance greater than $100 thousand. Any consumer loans outstanding to a borrower who had commercial loans analyzed will be similarly risk rated. This analysis is performed on a quarterly basis. The Corporation uses the following definitions for risk ratings:

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and debt service capacity of the borrower or of any pledged collateral. These loans have a well-defined weakness or weaknesses which have clearly jeopardized repayment of principal and interest as originally intended. They are characterized by the distinct possibility that the institution will sustain some future loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those graded substandard, with the added characteristic that the severity of the weaknesses makes collection or liquidation in full highly questionable or improbable based upon currently existing facts, conditions, and values.

Furthermore, non-homogeneous loans which were not individually analyzed, but are 90+ days past due or on non-accrual are classified as substandard. Loans included in homogeneous pools, such as residential or consumer may be classified as substandard due to 90+ days delinquency, non-accrual status, bankruptcy, or loan restructuring.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are either less than $100 thousand or are included in groups of homogeneous loans. As of September 30, 2015 and December 31, 2014, and based on the most recent analysis performed, the risk category of loans by class of loans are as follows:



	September 30, 2015
(Dollar amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
Commercial
Commercial & Industrial	$	408,039	$	28,331	$	31,171	$	1,295	$	6,607	$	475,443
Farmland	90,255		7,354		4,825		—		16		102,450
Non Farm, Non Residential	184,252		8,191		19,380		36		—		211,859
Agriculture	111,296		9,804		8,790		27		166		130,083
All Other Commercial	105,584		2,691		11,193		101		1,273		120,842
Residential
First Liens	98,630		4,591		8,633		718		189,034		301,606
Home Equity	11,097		453		1,348		11		25,247		38,156
Junior Liens	7,578		119		482		59		22,862		31,100
Multifamily	69,077		1,616		1,026		—		25		71,744
All Other Residential	902		—		25		—		7,892		8,819
Consumer
Motor Vehicle	10,555		498		508		—		238,435		249,996
All Other Consumer	3,181		89		121		15		18,833		22,239
TOTAL	$	1,100,446	$	63,737	$	87,502	$	2,262	$	510,390	$	1,764,337



	December 31, 2014
(Dollar amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
Commercial
Commercial & Industrial	$	393,449	$	29,081	$	24,013	$	2,900	$	4,717	$	454,160
Farmland	85,772		7,618		436		—		13		93,839
Non Farm, Non Residential	186,346		21,765		25,613		36		—		233,760
Agriculture	138,713		7,399		1,746		177		67		148,102
All Other Commercial	101,942		4,356		7,055		33		1,275		114,661
Residential
First Liens	104,854		5,929		7,733		1,035		196,008		315,559
Home Equity	12,592		375		1,374		6		26,116		40,463
Junior Liens	8,112		173		561		63		23,053		31,962
Multifamily	69,080		1,801		1,249		—		3		72,133
All Other Residential	1,799		—		28		—		7,228		9,055
Consumer
Motor Vehicle	11,135		402		224		—		233,302		245,063
All Other Consumer	3,169		141		87		21		18,175		21,593
TOTAL	$	1,116,963	$	79,040	$	70,119	$	4,271	$	509,957	$	1,780,350