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

ended March 31.



Allowance for Loan Losses:	March 31, 2019
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated		Total
Beginning balance	$	9,848		$	1,313		$	7,481		$	1,794	$	20,436
Provision for loan losses	(640		)	296			941			873		1,470
Loans charged -off	(256		)	(302		)	(1,551		)	—		(2,109		)
Recoveries	287			185			691			—		1,163
Ending Balance	$	9,239		$	1,492		$	7,562		$	2,667	$	20,960



Allowance for Loan Losses:	March 31, 2018
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated		Total
Beginning balance	$	10,281		$	1,455		$	6,709		$	1,464	$	19,909
Provision for loan losses	8			(9		)	1,018			456		1,473
Loans charged -off	(315		)	(219		)	(1,539		)	—		(2,073		)
Recoveries	178			162			593			—		933
Ending Balance	$	10,152		$	1,389		$	6,781		$	1,920	$	20,242

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 March 31, 2019 and December 31, 2018.



Allowance for Loan Losses	March 31, 2019
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Individually evaluated for impairment	$	763	$	—	$	—	$	—	$	763
Collectively evaluated for impairment	8,476		1,492		7,562		2,667		20,197
Acquired with deteriorated credit quality	—		—		—		—		—
Ending Balance	$	9,239	$	1,492	$	7,562	$	2,667	$	20,960



Loans:	March 31, 2019
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
Individually evaluated for impairment	$	6,203	$	4,252	$	—	$	10,455
Collectively evaluated for impairment	1,180,108		449,510		349,673		1,979,291
Acquired with deteriorated credit quality	1,459		—		—		1,459
Ending Balance	$	1,187,770	$	453,762	$	349,673	$	1,991,205



Allowance for Loan Losses:	December 31, 2018
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Individually evaluated for impairment	737		—		—		—		737
Collectively evaluated for impairment	9,111		1,313		7,481		1,794		19,699
Acquired with deteriorated credit quality	—		—		—		—		—
Ending Balance	$	9,848	$	1,313	$	7,481	$	1,794	$	20,436



Loans	December 31, 2018
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
Individually evaluated for impairment	6,101		4,415		—		10,516
Collectively evaluated for impairment	1,166,227		440,497		342,473		1,949,197
Acquired with deteriorated credit quality	1,495		—		—		1,495
Ending Balance	$	1,173,823	$	444,912	$	342,473	$	1,961,208

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



					March 31, 2019
	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	$	853	$	853	$	—	$	721	$	—	$	—
Farmland	1,953		1,953		—		1,988		—		—
Non Farm, Non Residential	—		—		—		—		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	1,108		1,108		—		1,111		—		—
Residential
First Liens	4,252		4,252		—		4,334		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	1,733		1,733		531		1,775		—		—
Farmland	210		210		40		211		—		—
Non Farm, Non Residential	—		—		—		—		—		—
Agriculture	346		346		192		346		—		—
All Other Commercial	—		—		—		—		—		—
Residential
First Liens	—		—		—		—		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	10,455	$	10,455	$	763	$	10,486	$	—	$	—



					December 31, 2018
	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	$	589	$	589	$	—	$	698	$	—	$	—
Farmland	2,022		2,022		—		1,579		—		—
Non Farm, Non Residential	—		—		—		1,443		—		—
Agriculture	—		—		—		49		—		—
All Other Commercial	1,114		1,114		—		1,172		—		—
Residential
First Liens	4,415		4,415		—		3,371		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		23		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	1,819		1,819		593		688		—		—
Farmland	211		211		44		1,691		—		—
Non Farm, Non Residential	—		—		—		—				—
Agriculture	346		346		100		316		—		—
All Other Commercial	—		—		—		—		—		—
Residential
First Liens	—		—		—		88		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	10,516	$	10,516	$	737	$	11,118	$	—	$	—



	Three Months Ended March 31, 2018
	Average Recorded		Interest Income		Cash Basis Interest Income
(Dollar amounts in thousands)	Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	788	$	—	$	—
Farmland	930		—		—
Non Farm, Non Residential	2,442		—		—
Agriculture	116		—		—
All Other Commercial	1,218		—		—
Residential
First Liens	2,032		—		—
Home Equity	—		—		—
Junior Liens	18		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	488		—		—
Farmland	3,041		—		—
Non Farm, Non Residential	—		—		—
Agriculture	537		—		—
All Other Commercial	—		—		—
Residential
First Liens	221		—		—
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
TOTAL	$	11,831	$	—	$	—

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



	March 31, 2019
	Loans Past Due Over 90 Day Still		Troubled Debt Restructured				Nonaccrual Excluding
(Dollar amounts in thousands)	Accruing		Accruing		Nonaccrual		TDR
Commercial
Commercial & Industrial	$	—	$	1	$	135	$	3,204
Farmland	—		—		—		2,322
Non Farm, Non Residential	—		—		—		76
Agriculture	—		—		—		353
All Other Commercial	—		—		—		1,084
Residential
First Liens	328		3,384		557		3,079
Home Equity	38		—		—		40
Junior Liens	5		79		—		82
Multifamily	—		—		—		—
All Other Residential	—		—		—		62
Consumer
Motor Vehicle	171		—		—		159
All Other Consumer	7		299		320		347
TOTAL	$	549	$	3,763	$	1,012	$	10,808



	December 31, 2018
	Loans Past Due Over 90 Day Still		Troubled Debt Restructured				Nonaccrual Excluding
(Dollar amounts in thousands)	Accruing		Accruing		Nonaccrual		TDR
Commercial
Commercial & Industrial	$	—	$	1	$	144	$	2,902
Farmland	—		—		—		2,391
Non Farm, Non Residential	—		—		—		81
Agriculture	—		—		—		355
All Other Commercial	—		—		—		1,122
Residential
First Liens	581		3,327		531		3,393
Home Equity	41		—		—		75
Junior Liens	53		55		—		86
Multifamily	—		—		—		—
All Other Residential	—		—		—		64
Consumer
Motor Vehicle	177		1		—		125
All Other Consumer	—		268		349		380
TOTAL	$	852	$	3,652	$	1,024	$	10,974

There were $13 thousand of loans covered by loss share agreements with the FDIC included in loans past due over 90 days still on accrual at March 31, 2019 and there were $19 thousand at December 31, 2018. There were $68 thousand of covered loans included in non-accrual loans at March 31, 2019 and there were $91 thousand at December 31, 2018. There were no covered loans at March 31, 2019 or December 31, 2018 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.



	March 31, 2019
	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	$	1,470	$	295	$	390	$	2,155	$	539,042	$	541,197
Farmland	7		210		2,067		2,284		102,046		104,330
Non Farm, Non Residential	243		—		56		299		187,202		187,501
Agriculture	933		—		346		1,279		136,067		137,346
All Other Commercial	154		3		—		157		217,239		217,396
Residential
First Liens	4,243		418		972		5,633		227,340		232,973
Home Equity	98		32		66		196		38,896		39,092
Junior Liens	260		6		17		283		49,540		49,823
Multifamily	52		—		—		52		123,242		123,294
All Other Residential	105		—		—		105		8,475		8,580
Consumer
Motor Vehicle	3,239		464		216		3,919		319,025		322,944
All Other Consumer	109		16		7		132		26,597		26,729
TOTAL	$	10,913	$	1,444	$	4,137	$	16,494	$	1,974,711	$	1,991,205



	December 31, 2018
	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	$	1,017	$	420	$	345	$	1,782	$	518,239	$	520,021
Farmland	515		8		2,136		2,659		104,981		107,640
Non Farm, Non Residential	—		—		57		57		188,706		188,763
Agriculture	41		—		347		388		148,345		148,733
All Other Commercial	30		3		—		33		208,633		208,666
Residential
First Liens	3,365		429		1,473		5,267		231,684		236,951
Home Equity	155		8		110		273		39,378		39,651
Junior Liens	132		225		63		420		49,111		49,531
Multifamily	—		—		—		—		109,609		109,609
All Other Residential	—		9		15		24		9,146		9,170
Consumer
Motor Vehicle	4,766		609		177		5,552		309,238		314,790
All Other Consumer	208		7		12		227		27,456		27,683
TOTAL	$	10,229	$	1,718	$	4,735	$	16,682	$	1,944,526	$	1,961,208

During the three months ended March 31, 2019 and 2018, the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDRs.



				2019
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Total
January 1,	$	145		$	4,043		$	618		$	4,806
Added	—			122			71			193
Charged Off	—			(16		)	(16		)	(32		)
Payments	(9		)	(130		)	(54		)	(193		)
March 31,	$	136		$	4,019		$	619		$	4,774



			2018
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
January 1,	2,709		3,611		714		7,034
Added	—		107		74		181
Charged Off	—		(16	)	(36	)	(52	)
Payments	(37	)	(134	)	(73	)	(244	)
March 31,	2,672		3,568		679		6,919

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 2019 or 2018 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 months ended March 31, 2019 and 2018 did not result in any material charge-offs or additional provision expense.

The Corporation has no allocations of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of March 31, 2019 and 2018. The Corporation has not committed to lend additional amounts as of March 31, 2019 and 2018 to customers with outstanding loans that are classified as troubled debt restructurings. None of the charge-offs during the three months ended March 31, 2019 and 2018 were of restructurings that had occurred 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 those with an outstanding balance less than $100 thousand or are included in groups of homogeneous loans. As of March 31, 2019 and December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans are as follows:



	March 31, 2019
(Dollar amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
Commercial
Commercial & Industrial	$	487,407	$	17,636	$	24,885	$	—	$	9,299	$	539,227
Farmland	88,245		6,552		8,028		—		14		102,839
Non Farm, Non Residential	167,773		6,813		12,311		—		133		187,030
Agriculture	110,152		4,012		20,141		—		532		134,837
All Other Commercial	207,573		41		6,593		—		2,207		216,414
Residential
First Liens	44,755		1,019		2,780		—		183,592		232,146
Home Equity	764		—		104		—		38,147		39,015
Junior Liens	1,973		73		157		76		47,423		49,702
Multifamily	122,945		—		—		—		26		122,971
All Other Residential	—		—		15		—		8,535		8,550
Consumer
Motor Vehicle	—		—		619		—		320,980		321,599
All Other Consumer	—		—		34		—		26,560		26,594
TOTAL	$	1,231,587	$	36,146	$	75,667	$	76	$	637,448	$	1,980,924



	December 31, 2018
(Dollar amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
Commercial
Commercial & Industrial	$	472,008	$	20,600	$	18,374	$	—	$	7,428	$	518,410
Farmland	90,367		7,587		7,783		—		19		105,756
Non Farm, Non Residential	170,757		5,442		10,439		—		1,695		188,333
Agriculture	118,952		10,010		16,637		—		457		146,056
All Other Commercial	198,302		43		6,777		—		2,675		207,797
Residential
First Liens	43,915		1,043		3,504		—		187,685		236,147
Home Equity	963		—		148		—		38,471		39,582
Junior Liens	1,983		74		224		76		47,060		49,417
Multifamily	109,361		—		—		—		17		109,378
All Other Residential	—		—		15		—		9,131		9,146
Consumer
Motor Vehicle	—		—		627		—		312,863		313,490
All Other Consumer	—		—		34		—		27,517		27,551
TOTAL	$	1,206,608	$	44,799	$	64,562	$	76	$	635,018	$	1,951,063