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, 2019
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated			Total
Beginning balance	$	9,481		$	1,323		$	7,744		$	1,702		$	20,250
Provision for loan losses	163			(10		)	1,691			(344		)	1,500
Loans charged -off	(864		)	(256		)	(2,082		)	—			(3,202		)
Recoveries	226			266			759			—			1,251
Ending Balance	$	9,006		$	1,323		$	8,112		$	1,358		$	19,799



Allowance for Loan Losses:	September 30, 2018
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated		Total
Beginning balance	$	9,498		$	1,382		$	7,131		$	2,060	$	20,071
Provision for loan losses	(106		)	(44		)	1,593			27		1,470
Loans charged -off	(409		)	(158		)	(1,781		)	—		(2,348		)
Recoveries	354			160			594			—		1,108
Ending Balance	$	9,337		$	1,340		$	7,537		$	2,087	$	20,301

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, 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	5			145			3,486			(436		)	3,200
Loans charged -off	(1,523		)	(675		)	(5,019		)	—			(7,217		)
Recoveries	676			540			2,164			—			3,380
Ending Balance	$	9,006		$	1,323		$	8,112		$	1,358		$	19,799




Allowance for Loan Losses:	September 30, 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	(443		)	56			4,062			623		4,298
Loans charged -off	(1,053		)	(632		)	(5,007		)	—		(6,692		)
Recoveries	552			461			1,773			—		2,786
Ending Balance	$	9,337		$	1,340		$	7,537		$	2,087	$	20,301

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, 2019 and December 31, 2018.



Allowance for Loan Losses	September 30, 2019
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Individually evaluated for impairment	$	33	$	—	$	—	$	—	$	33
Collectively evaluated for impairment	8,973		1,323		8,112		1,358		19,766
Acquired with deteriorated credit quality	—		—		—		—		—
Ending Balance	$	9,006	$	1,323	$	8,112	$	1,358	$	19,799



Loans:	September 30, 2019
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
Individually evaluated for impairment	$	3,415	$	3,664	$	—	$	7,079
Collectively evaluated for impairment	1,577,863		705,586		375,303		2,658,752
Acquired with deteriorated credit quality	10,000		260		—		10,260
Ending Balance	$	1,591,278	$	709,510	$	375,303	$	2,676,091



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.



					September 30, 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	$	1,752	$	1,222	$	—	$	813	$	—	$	—
Farmland	2,011		2,011		—		1,999		—		—
Non Farm, Non Residential	—		—		—		—		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	29		29		—		570		—		—
Residential
First Liens	3,664		3,664		—		4,080		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	153		153		33		1,349		—		—
Farmland	—		—		—		105		—		—
Non Farm, Non Residential	—		—		—		—		—		—
Agriculture	—		—		—		173		—		—
All Other Commercial	—		—		—		—		—		—
Residential
First Liens	—		—		—		—		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	7,609	$	7,079	$	33	$	9,089	$	—	$	—



					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 September 30, 2019						Nine Months Ended September 30, 2019
	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	$	904	$	—	$	—	$	813	$	—	$	—
Farmland	2,011		—		—		1,999		—		—
Non Farm, Non Residential	—		—		—		—		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	29		—		—		570		—		—
Residential
First Liens	3,827		—		—		4,080		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	922		—		—		1,349		—		—
Farmland	—		—		—		105		—		—
Non Farm, Non Residential	—		—		—		—		—		—
Agriculture	—		—		—		173		—		—
All Other Commercial	—		—		—		—		—		—
Residential
First Liens	—		—		—		—		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	7,693	$	—	$	—	$	9,089	$	—	$	—



	Three Months Ended September 30, 2018						Nine Months Ended September 30, 2018
	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	$	662	$	—	$	—	$	725	$	—	$	—
Farmland	2,007		—		—		1,468		—		—
Non Farm, Non Residential	1,165		—		—		1,803		—		—
Agriculture	6		—		—		61		—		—
All Other Commercial	1,156		—		—		1,187		—		—
Residential
First Liens	4,188		—		—		3,110		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	39		—		—		29		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	323		—		—		405		—		—
Farmland	1,081		—		—		2,061		—		—
Non Farm, Non Residential	—		—		—		—		—		—
Agriculture	80		—		—		309		—		—
All Other Commercial	—		—		—		—		—		—
Residential
First Liens	—		—		—		111		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	10,707	$	—	$	—	$	11,269	$	—	$	—

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



	September 30, 2019
	Loans Past Due Over 90 Days Still		Troubled Debt Restructured				Nonaccrual Excluding
(Dollar amounts in thousands)	Accruing		Accruing		Nonaccrual		TDR
Commercial
Commercial & Industrial	$	—	$	—	$	17	$	2,401
Farmland	—		—		—		2,439
Non Farm, Non Residential	—		—		—		455
Agriculture	—		—		—		490
All Other Commercial	—		—		—		81
Residential
First Liens	586		3,016		445		3,101
Home Equity	7		—		—		121
Junior Liens	12		48		9		179
Multifamily	—		—		—		—
All Other Residential	—		—		—		55
Consumer
Motor Vehicle	180		—		15		183
All Other Consumer	5		271		327		347
TOTAL	$	790	$	3,335	$	813	$	9,852



	December 31, 2018
	Loans Past Due Over 90 Days 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

The loss share agreement with the FDIC has ended. There were $19 thousand included in loans past due over 90 days still on accrual at December 31, 2018. There were $91 thousand of covered loans included in non-accrual loans at December 31, 2018. There were no covered loans at 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.



	September 30, 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	$	988	$	116	$	832	$	1,936	$	601,368	$	603,304
Farmland	—		5		2,100		2,105		136,959		139,064
Non Farm, Non Residential	60		—		—		60		409,728		409,788
Agriculture	493		—		—		493		159,886		160,379
All Other Commercial	75		47		29		151		278,592		278,743
Residential
First Liens	1,386		1,443		1,364		4,193		410,637		414,830
Home Equity	326		25		11		362		69,537		69,899
Junior Liens	355		101		126		582		53,078		53,660
Multifamily	—		—		—		—		163,803		163,803
All Other Residential	—		—		—		—		7,318		7,318
Consumer
Motor Vehicle	4,629		801		251		5,681		337,055		342,736
All Other Consumer	132		32		10		174		32,393		32,567
TOTAL	$	8,444	$	2,570	$	4,723	$	15,737	$	2,660,354	$	2,676,091



	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 and nine months ended September 30, 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
July 1,	$	127		$	3,797		$	617		$	4,541
Added	—			—			73			73
Charged Off	—			—			(35		)	(35		)
Payments	(110		)	(300		)	(42		)	(452		)
September 30,	$	17		$	3,497		$	613		$	4,127




				2019
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Total
January 1,	$	145		$	4,043		$	618		$	4,806
Added	—			122			236			358
Charged Off	—			(16		)	(81		)	(97		)
Payments	(128		)	(652		)	(160		)	(940		)
September 30,	$	17		$	3,497		$	613		$	4,127



			2018
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
July 1,	2,577		3,607		635		6,819
Added	—		538		94		632
Charged Off	—		—		(7	)	(7	)
Payments	(2,374	)	(165	)	(58	)	(2,597	)
September 30,	203		3,980		664		4,847




			2018
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
January 1,	2,709		3,611		714		7,034
Added	—		751		237		988
Charged Off	—		(16	)	(83	)	(99	)
Payments	(2,506	)	(366	)	(204	)	(3,076	)
September 30,	203		3,980		664		4,847

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 September 30, 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 September 30, 2019 and 2018. The Corporation has not committed to lend additional amounts as of September 30, 2019 and 2018 to customers with outstanding loans that are classified as troubled debt restructurings. None of the charge-offs during the three and nine months ended September 30, 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 September 30, 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:



	September 30, 2019
(Dollar amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
Commercial
Commercial & Industrial	$	550,274	$	18,205	$	26,901	$	4	$	6,228	$	601,612
Farmland	121,097		7,472		8,354		—		10		136,933
Non Farm, Non Residential	390,707		5,469		12,577		—		622		409,375
Agriculture	125,250		4,239		27,654		—		568		157,711
All Other Commercial	269,763		4,123		155		—		3,330		277,371
Residential
First Liens	193,626		1,142		4,540		—		214,651		413,959
Home Equity	18,375		—		452		—		51,008		69,835
Junior Liens	2,895		67		185		76		50,318		53,541
Multifamily	161,976		1,440		—		—		21		163,437
All Other Residential	—		—		13		—		7,271		7,284
Consumer
Motor Vehicle	3,224		—		470		—		337,630		341,324
All Other Consumer	3,691		—		33		—		28,699		32,423
TOTAL	$	1,840,878	$	42,157	$	81,334	$	80	$	700,356	$	2,664,805



	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