The following table summarizes the Company’s loan portfolio by type of loan as of:

	September 30, 2019			December 31, 2018
Commercial and industrial	$	299,714		$	261,779
Real estate:
Construction and development		256,459			237,503
Commercial real estate		581,742			582,519
Farmland		61,073			67,845
1-4 family residential		406,880			393,067
Multi-family residential		58,198			38,386
Consumer		53,315			54,777
Agricultural		18,728			23,277
Overdrafts		330			382
Total loans		1,736,439			1,659,535
Net of:
Deferred loan costs		550			560
Allowance for loan losses		(16,394	)		(14,651	)
Total net loans	$	1,720,595		$	1,645,444

The following tables present the activity in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method for the nine months ended September 30, 2019, for the year ended December 31, 2018 and for the nine months ended September 30, 2018:

For the Nine Months Ended September 30, 2019	Commercial and industrial			Construction and development		Commercial real estate		Farmland			1-4 family residential			Multi-family residential		Consumer			Agricultural			Overdrafts			Total
Allowance for loan losses:
Beginning balance	$	1,751		$	1,920	$	6,025	$	643		$	2,868		$	631	$	565		$	238		$	10		$	14,651
Provision for loan losses		(152	)		215		863		(49	)		220			199		(28	)		(126	)		108			1,250
Loans charged-off		(49	)		—		—		—			(14	)		—		(32	)		—			(137	)		(232	)
Recoveries		507			—		1		—			3			—		95			89			30			725
Ending balance	$	2,057		$	2,135	$	6,889	$	594		$	3,077		$	830	$	600		$	201		$	11		$	16,394
Allowance ending balance:
Individually evaluated for impairment	$	—		$	—	$	1,186	$	62		$	20		$	—	$	—		$	—		$	—		$	1,268
Collectively evaluated for impairment		2,057			2,135		5,703		532			3,057			830		600			201			11			15,126
Ending balance	$	2,057		$	2,135	$	6,889	$	594		$	3,077		$	830	$	600		$	201		$	11		$	16,394
Loans:
Individually evaluated for impairment	$	302		$	1,325	$	17,222	$	133		$	2,337		$	—	$	—		$	64		$	—		$	21,383
Collectively evaluated for impairment		299,412		$	255,134		564,520		60,940			404,543			58,198		53,315			18,664			330			1,715,056
Ending balance	$	299,714		$	256,459	$	581,742	$	61,073		$	406,880		$	58,198	$	53,315		$	18,728		$	330		$	1,736,439

For the Year Ended December 31, 2018	Commercial and industrial			Construction and development		Commercial real estate			Farmland		1-4 family residential			Multi-family residential		Consumer			Agricultural			Overdrafts			Total
Allowance for loan losses:
Beginning balance	$	1,581		$	1,724	$	4,585		$	523	$	3,022		$	629	$	602		$	187		$	6		$	12,859
Provision for loan losses		426			196		1,472			120		(196	)		2		127			(12	)		115			2,250
Loans charged-off		(367	)		—		(33	)		—		(93	)		—		(254	)		(2	)		(169	)		(918	)
Recoveries		111			—		1			—		135			—		90			65			58			460
Ending balance	$	1,751		$	1,920	$	6,025		$	643	$	2,868		$	631	$	565		$	238		$	10		$	14,651
Allowance ending balance:
Individually evaluated for impairment	$	64		$	4	$	341		$	78	$	6		$	—	$	—		$	—		$	—		$	493
Collectively evaluated for impairment		1,687			1,916		5,684			565		2,862			631		565			238			10			14,158
Ending balance	$	1,751		$	1,920	$	6,025		$	643	$	2,868		$	631	$	565		$	238		$	10		$	14,651
Loans:
Individually evaluated for impairment	$	1,022		$	1,250	$	7,153		$	140	$	1,383		$	—	$	—		$	408		$	—		$	11,356
Collectively evaluated for impairment		260,757		$	236,253		575,366			67,705		391,684			38,386		54,777			22,869			382			1,648,179
Ending balance	$	261,779		$	237,503	$	582,519		$	67,845	$	393,067		$	38,386	$	54,777		$	23,277		$	382		$	1,659,535

For the Nine Months Ended September 30, 2018	Commercial and industrial			Construction and development		Commercial real estate			Farmland		1-4 family residential			Multi-family residential		Consumer			Agricultural			Overdrafts			Total
Allowance for loan losses:
Beginning balance	$	1,581		$	1,724	$	4,585		$	523	$	3,022		$	629	$	602		$	187		$	6		$	12,859
Provision for loan losses		138			119		1,329			100		(161	)		41		101			(3	)		86			1,750
Loans charged-off		(66	)		—		(32	)		—		(19	)		—		(175	)		(2	)		(117	)		(411	)
Recoveries		54			—		—			—		49			—		41			65			34			243
Ending balance	$	1,707		$	1,843	$	5,882		$	623	$	2,891		$	670	$	569		$	247		$	9		$	14,441
Allowance ending balance:
Individually evaluated for impairment	$	315		$	—	$	61		$	74	$	4		$	—	$	—		$	—		$	—		$	454
Collectively evaluated for impairment		1,392			1,843		5,821			549		2,887			670		569			247			9			13,987
Ending balance	$	1,707		$	1,843	$	5,882		$	623	$	2,891		$	670	$	569		$	247		$	9		$	14,441
Loans:
Individually evaluated for impairment	$	1,584		$	1,684	$	6,360		$	218	$	1,571		$	—	$	—		$	409		$	—		$	11,826
Collectively evaluated for impairment		247,174		$	227,623		592,793			64,991		390,885			38,523		53,947			23,775			326			1,640,037
Ending balance	$	248,758		$	229,307	$	599,153		$	65,209	$	392,456		$	38,523	$	53,947		$	24,184		$	326		$	1,651,863

The Company closely monitors economic conditions and loan performance trends to manage and evaluate the exposure to credit risk. Key factors tracked by the Company and utilized in evaluating the credit quality of the loan portfolio include trends in delinquency ratios, the level of nonperforming assets, borrower’s repayment capacity, and collateral coverage.

Assets are graded “pass” when the relationship exhibits acceptable credit risk and indicates repayment ability, tolerable collateral coverage and reasonable performance history. Lending relationships exhibiting potentially significant credit risk and marginal repayment ability and/or asset protection are graded “special mention.” Assets classified as “substandard” are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness that jeopardizes the liquidation of the debt. Substandard graded loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Assets graded “doubtful” are substandard graded loans that have added characteristics that make collection or liquidation in full improbable. The Company typically measures impairment based on the present value of expected future cash flows, discounted at the loan's effective interest rate, or based on the loan's observable market price or the fair value of the collateral if the loan is collateral-dependent.

The following tables summarize the credit exposure in the Company’s consumer and commercial loan portfolios as of:

September 30, 2019	Commercial and industrial		Construction and development		Commercial real estate		Farmland		1-4 family residential		Multi-family residential		Consumer and Overdrafts		Agricultural		Total
Grade:
Pass	$	299,358	$	254,527	$	561,933	$	60,792	$	405,635	$	58,198	$	53,495	$	18,493	$	1,712,431
Special mention		149		600		2,859		44		830		—		61		102		4,645
Substandard		207		1,332		16,950		237		415		—		89		133		19,363
Total	$	299,714	$	256,459	$	581,742	$	61,073	$	406,880	$	58,198	$	53,645	$	18,728	$	1,736,439

December 31, 2018	Commercial and industrial		Construction and development		Commercial real estate		Farmland		1-4 family residential		Multi-family residential		Consumer and Overdrafts		Agricultural		Total
Grade:
Pass	$	260,863	$	236,253	$	569,648	$	67,541	$	391,956	$	38,386	$	55,055	$	22,713	$	1,642,415
Special mention		224	—			5,691		49		514	—			48		115		6,641
Substandard		692		1,250		7,180		255		597	—			56		449		10,479
Total	$	261,779	$	237,503	$	582,519	$	67,845	$	393,067	$	38,386	$	55,159	$	23,277	$	1,659,535

The following tables summarize the payment status of loans in the Company’s total loan portfolio, including an aging of delinquent loans, loans 90 days or more past due continuing to accrue interest and loans classified as nonperforming as of:

September 30, 2019	30 to 59 Days Past Due		60 to 89 Days Past Due		90 Days and Greater Past Due		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days and Accruing
Commercial and industrial	$	664	$	88	$	—	$	752	$	298,962	$	299,714	$	—
Real estate:
Construction and development		1,498		—		99		1,597		254,862		256,459		—
Commercial real estate		1,960		278		521		2,759		578,983		581,742		—
Farmland		255		—		—		255		60,818		61,073		—
1-4 family residential		4,819		890		414		6,123		400,757		406,880		—
Multi-family residential		—		—		—		—		58,198		58,198		—
Consumer		341		81		90		512		52,803		53,315		—
Agricultural		65		—		—		65		18,663		18,728		—
Overdrafts		—		—		—		—		330		330		—
Total	$	9,602	$	1,337	$	1,124	$	12,063	$	1,724,376	$	1,736,439	$	—

December 31, 2018	30 to 59 Days Past Due		60 to 89 Days Past Due		90 Days and Greater Past Due		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days and Accruing
Commercial and industrial	$	209	$	493	$	266	$	968	$	260,811	$	261,779	$	—
Real estate:
Construction and development		735		2,816		—		3,551		233,952		237,503		—
Commercial real estate		1,803		3		3,227		5,033		577,486		582,519		—
Farmland		485		—		—		485		67,360		67,845		—
1-4 family residential		2,849		666		596		4,111		388,956		393,067		—
Multi-family residential		—		—		—		—		38,386		38,386		—
Consumer		526		51		56		633		54,144		54,777		—
Agricultural		105		59		41		205		23,072		23,277		—
Overdrafts		—		—		—		—		382		382		—
Total	$	6,712	$	4,088	$	4,186	$	14,986	$	1,644,549	$	1,659,535	$	—

A troubled debt restructuring (“TDR”) is a restructuring in which a bank, for economic or legal reasons related to a borrower's financial difficulties, grants a concession to the borrower that it would not otherwise consider. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due from the borrower in accordance with original contractual terms of the loan. Loans with insignificant delays or insignificant short falls in the amount of payments expected to be collected are not considered to be impaired. Loans defined as individually impaired, based on applicable accounting guidance, include larger balance nonperforming loans and TDRs.

The following tables present loans by class, modified as TDRs, that occurred during the nine months ended September 30, 2019, the twelve months ended December 31, 2018 and the nine months ended September 30, 2018:

There was one TDR that subsequently defaulted, therefore remained on nonaccrual status as of December 31, 2018. The TDRs described above did not increase the allowance for loan losses and resulted in no charge-offs during the year ended December 31, 2018.

There were no TDRs that subsequently defaulted through September 30, 2018. The TDRs described above did not increase the allowance for loan losses and resulted in no charge-offs during the nine months ended September 30, 2018.

The following table presents information about the Company’s impaired loans as of:

September 30, 2019	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Recorded Investment
With no related allowance recorded:
Commercial and industrial	$	302	$	302	$	—	$	239
Real estate:
Construction and development		1,325		1,325		—		938
Commercial real estate		3,923		3,923		—		3,115
Farmland		—		—		—		—
1-4 family residential		2,283		2,283		—		1,225
Multi-family residential		—		—		—		—
Consumer		—		—		—		—
Agricultural		64		64		—		175
Subtotal		7,897		7,897		—		5,692
With allowance recorded:
Commercial and industrial		—		—		—		61
Real estate:
Construction and development		—		—		—		—
Commercial real estate		13,299		13,299		1,186		5,892
Farmland		133		133		62		102
1-4 family residential		54		54		20		73
Multi-family residential		—		—		—		—
Consumer		—		—		—		—
Agricultural		—		—		—		—
Subtotal		13,486		13,486		1,268		6,128
Total	$	21,383	$	21,383	$	1,268	$	11,820

The following table presents information about the Company’s impaired loans as of:

December 31, 2018	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Recorded Investment
With no related allowance recorded:
Commercial and industrial	$	837	$	837	$	—	$	842
Real estate:
Construction and development		720		720		—		518
Commercial real estate		5,168		5,168		—		5,138
Farmland		—		—		—		62
1-4 family residential		1,223		1,223		—		1,132
Multi-family residential		—		—		—		54
Consumer		—		—		—		—
Agricultural		408		408		—		456
Subtotal		8,356		8,356		—		8,202
With allowance recorded:
Commercial and industrial		185		185		64		300
Real estate:
Construction and development		530		530		4		44
Commercial real estate		1,985		1,985		341		677
Farmland		140		140		78		147
1-4 family residential		160		160		6		128
Multi-family residential		—		—		—		—
Consumer		—		—		—		—
Agricultural		—		—		—		52
Subtotal		3,000		3,000		493		1,348
Total	$	11,356	$	11,356	$	493	$	9,550

During the nine months ended September 30, 2019 and 2018, total interest income and cash-based interest income recognized on impaired loans was minimal.