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, 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	7			376			830			237		1,450
Loans charged -off	(336		)	(225		)	(1,262		)	—		(1,823		)
Recoveries	232			97			556			—		885
Ending Balance	$	10,818		$	1,622		$	4,494		$	2,417	$	19,351



Allowance for Loan Losses:	March 31, 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*	732			66			800			127		1,725
Loans charged -off	(936		)	(172		)	(1,053		)	—		(2,161		)
Recoveries	207			102			467			—		776
Ending Balance	$	12,453		$	1,581		$	3,864		$	2,510	$	20,408

* Provision before increase of $235 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 March 31, 2015 and December 31, 2014.



Allowance for Loan Losses	March 31, 2015
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Individually evaluated for impairment	$	1,557	$	—	$	—	$	—	$	1,557
Collectively evaluated for impairment	8,998		1,622		4,494		2,417		17,531
Acquired with deteriorated credit quality	263		—		—		—		263
Ending Balance	$	10,818	$	1,622	$	4,494	$	2,417	$	19,351



Loans:	March 31, 2015
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
Individually evaluated for impairment	$	14,586	$	265	$	—	$	14,851
Collectively evaluated for impairment	1,027,643		448,251		265,661		1,741,555
Acquired with deteriorated credit quality	4,932		1,617		—		6,549
Ending Balance	$	1,047,161	$	450,133	$	265,661	$	1,762,955



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.



					March 31, 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	$	251	$	251	$	—	$	589	$	—	$	—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	—		—		—		—		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	256		256		—		274		—		—
Residential
First Liens	—		—		—		—		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	8,824		7,017		575		6,446		—		—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	6,482		6,482		885		6,568		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	580		580		97		704		—		—
Residential
First Liens	265		265		—		149		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	16,658	$	14,851	$	1,557	$	14,730	$	—	$	—



	March 31, 2014
	Average Recorded		Interest Income		Cash Basis Interest
(Dollar amounts in thousands)	Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	1,906	$	—	$	—
Farmland	—		—		—
Non Farm, Non Residential	104		—		—
Agriculture	—		—		—
All Other Commercial	—		—		—
Residential
First Liens	—		—		—
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	8,085		—		—
Farmland	—		—		—
Non Farm, Non Residential	6,740		—		—
Agriculture	—		—		—
All Other Commercial	1,046		—		—
Residential
First Liens	37		—		—
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
TOTAL	$	17,918	$	—	$	—



					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	$	—	$	—

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



	March 31, 2015
	Loans Past Due Over 90 Day Still		Troubled Debt
(Dollar amounts in thousands)	Accruing		Accruing		Nonaccrual		Nonaccrual
Commercial
Commercial & Industrial	$	48	$	7	$	4,877	$	3,944
Farmland	—		—		—		74
Non Farm, Non Residential	—		9		3,943		3,472
Agriculture	—		—		—		444
All Other Commercial	—		—		—		830
Residential
First Liens	416		4,736		897		4,301
Home Equity	103		—		—		296
Junior Liens	49		—		—		176
Multifamily	—		—		—		—
All Other Residential	6		—		—		104
Consumer
Motor Vehicle	92		238		27		165
All Other Consumer	5		—		310		1,062
TOTAL	$	719	$	4,990	$	10,054	$	14,868



	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 no loans covered by loss share agreements with the FDIC included in loans past due over 90 days still on accrual at March 31, 2015 and there were $37 thousand at December 31, 2014. There were $280 thousand of covered loans included in non-accrual loans at March 31, 2015 and there were $274 thousand at December 31, 2014. There were no covered loans at March 31, 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 table presents the aging of the recorded investment in loans by past due category and class of loans.



	March 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	$	835	$	190	$	3,425	$	4,450	$	473,658	$	478,108
Farmland	42		—		—		42		95,681		95,723
Non Farm, Non Residential	299		76		257		632		224,880		225,512
Agriculture	126		—		177		303		127,201		127,504
All Other Commercial	100		—		257		357		119,957		120,314
Residential
First Liens	3,186		363		1,242		4,791		306,789		311,580
Home Equity	146		18		191		355		38,215		38,570
Junior Liens	316		64		184		564		30,966		31,530
Multifamily	174		—		—		174		60,595		60,769
All Other Residential	22		—		6		28		7,656		7,684
Consumer
Motor Vehicle	2,156		285		106		2,547		242,859		245,406
All Other Consumer	57		—		5		62		20,193		20,255
TOTAL	$	7,459	$	996	$	5,850	$	14,305	$	1,748,650	$	1,762,955



	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 months ended March 31, 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
January 1,	8,955		5,189		614		14,758
Added	—		579		49		628
Charged Off	—		(62	)	(40	)	(102	)
Payments	(120	)	(88	)	(48	)	(256	)
March 31,	8,835		5,618		575		15,028



			2014
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
January 1,	12,327		4,330		644		21,285
Added	—		133		68		201
Charged Off	(1,069	)	—		(20	)	(1,089	)
Payments	(1,915	)	(101	)	(72	)	(2,088	)
March 31,	9,343		4,362		620		14,325

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 quarters ended March 31, 2015 and 2014 did not result in any charge-offs or additional provision expense.

The Corporation has allocated $138 thousand and $1.9 million of specific reserves to customers whose loan terms have been modified in troubled debt restructurings at both March 31, 2015 and 2014, respectively. The Corporation has not committed to lend additional amounts as of March 31, 2015 and 2014 to customers with outstanding loans that are classified as troubled debt restructurings. The charge-offs during the quarters ended March 31, 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 March 31, 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:



	March 31, 2015
(Dollar amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
Commercial
Commercial & Industrial	$	413,969	$	30,781	$	26,548	$	2,836	$	2,674	$	476,808
Farmland	86,491		7,438		492		—		12		94,433
Non Farm, Non Residential	188,390		14,259		22,346		36		—		225,031
Agriculture	115,942		6,940		2,557		177		99		125,715
All Other Commercial	105,789		6,397		5,763		107		1,651		119,707
Residential
First Liens	103,169		5,288		7,891		1,002		193,256		310,606
Home Equity	11,602		413		1,326		12		25,156		38,509
Junior Liens	7,642		112		565		61		23,056		31,436
Multifamily	57,893		1,513		1,222		—		4		60,632
All Other Residential	1,295		—		27		—		6,337		7,659
Consumer
Motor Vehicle	11,323		427		258		—		232,372		244,380
All Other Consumer	2,935		158		78		18		16,960		20,149
TOTAL	$	1,106,440	$	73,726	$	69,073	$	4,249	$	501,577	$	1,755,065



	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