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Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2016
Allowance for Loan and Lease Losses Write-offs, Net [Abstract]  
Schedule of allowances for loan losses by portfolio segment
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, 2016
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
10,244

 
$
1,595

 
$
5,258

 
$
2,407

 
$
19,504

Provision for loan losses
 
571

 
40

 
1,275

 
(795
)
 
1,091

Loans charged -off
 
(1,029
)
 
(211
)
 
(1,484
)
 
—

 
(2,724
)
Recoveries
 
479

 
154

 
570

 
—

 
1,203

Ending Balance
 
$
10,265

 
$
1,578

 
$
5,619

 
$
1,612

 
$
19,074



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
Allocation of the allowance for loan losses by portfolio segment based on the impairment method
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, 2016 and December 31, 2015. 
Allowance for Loan Losses
 
September 30, 2016
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Individually evaluated for impairment
 
$
748

 
$
109

 
$
—

 
$
—

 
$
857

Collectively evaluated for impairment
 
9,369

 
1,469

 
5,619

 
1,612

 
18,069

Acquired with deteriorated credit quality
 
148

 
—

 
—

 
—

 
148

Ending Balance
 
$
10,265

 
$
1,578

 
$
5,619

 
$
1,612

 
$
19,074

 
Loans:
 
September 30, 2016
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
 
 
Total
Individually evaluated for impairment
 
$
10,073

 
$
571

 
$
—

 
 
 
$
10,644

Collectively evaluated for impairment
 
1,076,103

 
429,413

 
306,065

 
 
 
1,811,581

Acquired with deteriorated credit quality
 
3,760

 
1,489

 
—

 
 
 
5,249

Ending Balance
 
$
1,089,936

 
$
431,473

 
$
306,065

 
 
 
$
1,827,474


Allowance for Loan Losses:
 
December 31, 2015
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Individually evaluated for impairment
 
953

 
206

 
—

 
—

 
1,159

Collectively evaluated for impairment
 
10,342

 
1,628

 
4,945

 
1,685

 
18,600

Acquired with deteriorated credit quality
 
187

 
—

 
—

 
—

 
187

Ending Balance
 
$
11,482

 
$
1,834

 
$
4,945

 
$
1,685

 
$
19,946


Loans
 
December 31, 2015
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
 
 
Total
Individually evaluated for impairment
 
8,823

 
902

 
—

 
 
 
9,725

Collectively evaluated for impairment
 
1,037,086

 
443,224

 
274,134

 
 
 
1,754,444

Acquired with deteriorated credit quality
 
4,092

 
1,529

 
—

 
 
 
5,621

Ending Balance
 
$
1,050,001

 
$
445,655

 
$
274,134

 
 
 
$
1,769,790
Schedule of loans individually evaluated for impairment by class of loans
The following tables present loans individually evaluated for impairment by class of loans. 

 
 
 
 
 
 
September 30, 2016
 
 
 
 
 
 
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
 
$
1,202

 
$
1,202

 
$
—

 
$
931

 
$
—

 
$
—

Farmland
 
1,560

 
1,561

 
—

 
757

 
—

 
—

Non Farm, Non Residential
 
3,415

 
3,043

 
—

 
3,121

 
—

 
—

Agriculture
 
635

 
635

 
—

 
318

 
—

 
—

All Other Commercial
 
1,395

 
1,395

 
—

 
1,504

 
—

 
—

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
26

 
26

 
—

 
28

 
—

 
—

Home Equity
 
—

 
—

 
—

 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

 
—

 
—

 
—

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

 
—

 
—

 
—

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
966

 
966

 
226

 
890

 
—

 
—

Farmland
 
—

 
—

 
—

 
—

 
—

 
—

Non Farm, Non Residential
 
701

 
701

 
193

 
1,105

 
—

 
—

Agriculture
 
635

 
571

 
329

 
143

 
—

 
—

All Other Commercial
 
—

 
—

 
—

 
56

 
—

 
—

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
544

 
544

 
109

 
677

 
—

 
—

Home Equity
 
—

 
—

 
—

 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

 
—

 
—

 
—

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

 
—

 
—

 
—

TOTAL
 
$
11,079

 
$
10,644

 
$
857

 
$
9,530

 
$
—

 
$
—

 



 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
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
 
$
1,516

 
$
1,223

 
$
—

 
$
1,796

 
$
—

 
$
—

Farmland
 
—

 
—

 
—

 
—

 
—

 
—

Non Farm, Non Residential
 
3,202

 
3,202

 
—

 
2,080

 
—

 
—

Agriculture
 
—

 
—

 
—

 
—

 
—

 
—

All Other Commercial
 
1,760

 
1,760

 
—

 
1,175

 
—

 
—

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
29

 
29

 
—

 
18

 
—

 
—

Home Equity
 
—

 
—

 
—

 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

 
—

 
—

 
—

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

 
—

 
—

 
—

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
998

 
998

 
212

 
3,463

 
—

 
—

Farmland
 
—

 
—

 
—

 
—

 
—

 
—

Non Farm, Non Residential
 
1,415

 
1,415

 
741

 
3,682

 
—

 
—

Agriculture
 
—

 
—

 
—

 
—

 
—

 
—

All Other Commercial
 
225

 
225

 
—

 
483

 
—

 
—

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
873

 
873

 
206

 
460

 
—

 
—

Home Equity
 
—

 
—

 
—

 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

 
—

 
—

 
—

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

 
—

 
—

 
—

TOTAL
 
$
10,018

 
$
9,725

 
$
1,159

 
$
13,157

 
$
—

 
$
—

 
Schedule of non-performing loans
The tables below presents the recorded investment in non-performing loans.
 
 
September 30, 2016
 
 
Loans Past
Due Over
90 Day Still
 
Troubled
Debt
 
 
(Dollar amounts in thousands)
 
Accruing
 
Accruing
 
Nonaccrual
 
Nonaccrual
Commercial
 
 

 
 

 
 

 
 

Commercial & Industrial
 
$
—

 
$
4

 
$
393

 
$
3,008

Farmland
 
—

 
—

 
—

 
1,638

Non Farm, Non Residential
 
—

 
54

 
2,985

 
1,376

Agriculture
 
—

 
—

 
—

 
1,755

All Other Commercial
 
—

 
—

 
—

 
1,514

Residential
 
 

 
 

 
 
 
 

First Liens
 
814

 
3,632

 
1,180

 
5,470

Home Equity
 
38

 
—

 
—

 
286

Junior Liens
 
107

 
—

 
—

 
192

Multifamily
 
—

 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

 
98

Consumer
 
 

 
 

 
 
 
 

Motor Vehicle
 
253

 
70

 
—

 
203

All Other Consumer
 
—

 
133

 
497

 
747

TOTAL
 
$
1,212

 
$
3,893

 
$
5,055

 
$
16,287


 
 
December 31, 2015
 
 
Loans Past
Due Over
90 Day Still
 
Troubled
Debt
 
 
(Dollar amounts in thousands)
 
Accruing
 
Accruing
 
Nonaccrual
 
Nonaccrual
Commercial
 
 

 
 

 
 

 
 

Commercial & Industrial
 
$
—

 
$
5

 
$
422

 
$
3,187

Farmland
 
—

 
—

 
—

 
219

Non Farm, Non Residential
 
—

 
6

 
3,152

 
2,545

Agriculture
 
—

 
—

 
—

 
378

All Other Commercial
 
—

 
—

 
—

 
1,817

Residential
 
 

 
 

 
 
 
 

First Liens
 
809

 
4,577

 
1,034

 
4,839

Home Equity
 
10

 
—

 
—

 
320

Junior Liens
 
45

 
—

 
—

 
211

Multifamily
 
—

 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

 
111

Consumer
 
 

 
 

 
 
 
 

Motor Vehicle
 
148

 
—

 
2

 
213

All Other Consumer
 
4

 
—

 
400

 
794

TOTAL
 
$
1,016

 
$
4,588

 
$
5,010

 
$
14,634
Troubled Debt Restructurings on Financing Receivables
During the three and nine months ended September 30, 2016 and 2015, the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDR's.
 
 
 
 
2016
 
 
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Total
July 1,
 
$
3,453

 
$
5,033

 
$
669

 
$
9,155

    Added
 
—

 
—

 
109

 
109

    Charged Off
 
—

 
—

 
(13
)
 
(13
)
    Payments
 
(71
)
 
(239
)
 
(55
)
 
(365
)
September 30,
 
$
3,382

 
$
4,794

 
$
710

 
$
8,886

 
 
 
 
2016
 
 
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Total
January 1,
 
3,584

 
5,593

 
683

 
9,860

    Added
 
—

 
123

 
259

 
382

    Charged Off
 
—

 
(181
)
 
(39
)
 
(220
)
    Payments
 
(202
)
 
(741
)
 
(193
)
 
(1,136
)
September 30,
 
3,382

 
4,794

 
710

 
8,886

 
 
 
 
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
Aging of recorded investment in loans by past due category and class of loans
The following tables presents the aging of the recorded investment in loans by past due category and class of loans.  
 
 
September 30, 2016
 
 
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
 
$
456

 
$
111

 
$
1,203

 
$
1,770

 
$
468,398

 
$
470,168

Farmland
 
23

 
—

 
45

 
68

 
111,938

 
112,006

Non Farm, Non Residential
 
—

 
5

 
190

 
195

 
197,119

 
197,314

Agriculture
 
78

 
1,031

 
218

 
1,327

 
144,571

 
145,898

All Other Commercial
 
109

 
—

 
30

 
139

 
164,411

 
164,550

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
601

 
1,109

 
1,976

 
3,686

 
274,734

 
278,420

Home Equity
 
133

 
24

 
119

 
276

 
36,427

 
36,703

Junior Liens
 
253

 
54

 
262

 
569

 
35,287

 
35,856

Multifamily
 
—

 
—

 
—

 
—

 
70,517

 
70,517

All Other Residential
 
—

 
—

 
—

 
—

 
9,977

 
9,977

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
3,315

 
554

 
295

 
4,164

 
277,488

 
281,652

All Other Consumer
 
77

 
12

 
6

 
95

 
24,318

 
24,413

TOTAL
 
$
5,045

 
$
2,900

 
$
4,344

 
$
12,289

 
$
1,815,185

 
$
1,827,474

 
 
 
December 31, 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
 
$
326

 
$
274

 
$
1,405

 
$
2,005

 
$
476,984

 
$
478,989

Farmland
 
135

 
—

 
—

 
135

 
106,725

 
106,860

Non Farm, Non Residential
 
1,824

 
90

 
310

 
2,224

 
206,844

 
209,068

Agriculture
 
65

 
38

 
324

 
427

 
143,116

 
143,543

All Other Commercial
 
25

 
32

 
—

 
57

 
111,484

 
111,541

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
4,960

 
1,181

 
1,671

 
7,812

 
285,913

 
293,725

Home Equity
 
85

 
23

 
114

 
222

 
37,502

 
37,724

Junior Liens
 
179

 
29

 
177

 
385

 
32,876

 
33,261

Multifamily
 
—

 
—

 
—

 
—

 
70,735

 
70,735

All Other Residential
 
15

 
—

 
—

 
15

 
10,195

 
10,210

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
3,212

 
568

 
181

 
3,961

 
247,882

 
251,843

All Other Consumer
 
38

 
10

 
5

 
53

 
22,238

 
22,291

TOTAL
 
$
10,864

 
$
2,245

 
$
4,187

 
$
17,296

 
$
1,752,494

 
$
1,769,790
Analysis of risk category of loans by class of loans
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. Beginning in July 2016, the Company’s loan rating process no longer includes all loans in a loan relationship. Therefore, certain first lien mortgage loans and consumer loans that were previously rated in a loan relationship have been included in the not rated category as of September 30, 2016. As of September 30, 2016 and December 31, 2015, and based on the most recent analysis performed, the risk category of loans by class of loans are as follows:
 
 
September 30, 2016
(Dollar amounts in thousands)
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Not Rated
 
Total
Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
$
419,984

 
$
17,988

 
$
23,935

 
$
450

 
$
6,481

 
$
468,838

Farmland
 
91,237

 
12,274

 
6,138

 
—

 
233

 
109,882

Non Farm, Non Residential
 
172,972

 
6,523

 
17,350

 
—

 
—

 
196,845

Agriculture
 
117,386

 
13,587

 
12,526

 
24

 
319

 
143,842

All Other Commercial
 
150,953

 
661

 
10,367

 
76

 
1,665

 
163,722

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
43,308

 
1,280

 
5,746

 
23

 
227,234

 
277,591

Home Equity
 
357

 
—

 
183

 
—

 
36,108

 
36,648

Junior Liens
 
1,888

 
86

 
432

 
26

 
33,342

 
35,774

Multifamily
 
68,051

 
2,117

 
15

 
—

 
198

 
70,381

All Other Residential
 
—

 
—

 
22

 
—

 
9,930

 
9,952

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
344

 
—

 
280,188

 
280,532

All Other Consumer
 
—

 
—

 
25

 
—

 
24,283

 
24,308

TOTAL
 
$
1,066,136

 
$
54,516

 
$
77,083

 
$
599

 
$
619,981

 
$
1,818,315

 
 
December 31, 2015
(Dollar amounts in thousands)
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Not Rated
 
Total
Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
$
417,880

 
$
20,422

 
$
32,778

 
$
757

 
$
5,638

 
$
477,475

Farmland
 
93,418

 
6,387

 
5,208

 
—

 
16

 
105,029

Non Farm, Non Residential
 
180,659

 
8,114

 
19,857

 
—

 
—

 
208,630

Agriculture
 
121,244

 
11,964

 
8,419

 
27

 
170

 
141,824

All Other Commercial
 
95,850

 
2,649

 
10,887

 
101

 
1,535

 
111,022

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
96,146

 
4,594

 
8,598

 
699

 
182,791

 
292,828

Home Equity
 
11,701

 
387

 
669

 
10

 
24,895

 
37,662

Junior Liens
 
7,493

 
86

 
505

 
58

 
25,033

 
33,175

Multifamily
 
68,972

 
1,602

 
—

 
—

 
23

 
70,597

All Other Residential
 
886

 
—

 
24

 
—

 
9,275

 
10,185

Consumer
 


 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
10,287

 
356

 
534

 
—

 
239,543

 
250,720

All Other Consumer
 
2,930

 
77

 
125

 
14

 
19,030

 
22,176

TOTAL
 
$
1,107,466

 
$
56,638

 
$
87,604

 
$
1,666

 
$
507,949

 
$
1,761,323