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, 2016
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated		Total
Beginning balance	$	11,482		$	1,834		$	4,945		$	1,685	$	19,946
Provision for loan losses	(275		)	125			787			198		835
Loans charged -off	(267		)	(239		)	(1,134		)	—		(1,640		)
Recoveries	228			49			508			—		785
Ending Balance	$	11,168		$	1,769		$	5,106		$	1,883	$	19,926



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

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, 2016 and December 31, 2015.



Allowance for Loan Losses	March 31, 2016
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Individually evaluated for impairment	$	881	$	192	$	—	$	—	$	1,073
Collectively evaluated for impairment	10,136		1,577		5,106		1,883		18,702
Acquired with deteriorated credit quality	151		—		—		—		151
Ending Balance	$	11,168	$	1,769	$	5,106	$	1,883	$	19,926



Loans:	March 31, 2016
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
Individually evaluated for impairment	$	7,431	$	712	$	—	$	8,143
Collectively evaluated for impairment	1,041,900		435,874		277,716		1,755,490
Acquired with deteriorated credit quality	4,007		1,515		—		5,522
Ending Balance	$	1,053,338	$	438,101	$	277,716	$	1,769,155



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

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



					March 31, 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	$	1,357	$	1,063	$	—	$	1,143	$	—	$	—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	3,155		3,155		—		3,178		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	1,437		1,437		—		1,599		—		—
Residential
First Liens	28		28		—		29		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	600		600		204		799		—		—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	1,176		1,176		677		1,296		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	—		—		—		113		—		—
Residential
First Liens	684		684		192		779		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	8,437	$	8,143	$	1,073	$	8,936	$	—	$	—



					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	$	—	$	—



	Three Months Ended March 31, 2015
	Average Recorded		Interest Income		Cash Basis Interest Income
(Dollar amounts in thousands)	Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	589	$	—	$	—
Farmland	—		—		—
Non Farm, Non Residential	—		—		—
Agriculture	—		—		—
All Other Commercial	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	6,446		—		—
Farmland	—		—		—
Non Farm, Non Residential	6,568		—		—
Agriculture	—		—		—
All Other Commercial	704		—		—
Residential
First Liens	149		—		—
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
TOTAL	$	14,730	$	—	$	—

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



	March 31, 2016
	Loans Past Due Over 90 Day Still		Troubled Debt
(Dollar amounts in thousands)	Accruing		Accruing		Nonaccrual		Nonaccrual
Commercial
Commercial & Industrial	$	—	$	5	$	413	$	2,525
Farmland	—		—		—		108
Non Farm, Non Residential	—		4		3,114		2,174
Agriculture	—		—		—		403
All Other Commercial	—		—		—		1,380
Residential
First Liens	681		4,178		1,128		5,067
Home Equity	10		—		—		308
Junior Liens	42		—		—		210
Multifamily	—		—		—		—
All Other Residential	—		—		—		106
Consumer
Motor Vehicle	174		121		2		185
All Other Consumer	5		125		442		782
TOTAL	$	912	$	4,433	$	5,099	$	13,248



	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

There were no loans covered by loss share agreements with the FDIC included in loans past due over 90 days still on accrual at March 31, 2016 and there were $37 thousand at December 31, 2015. There were $255 thousand of covered loans included in non-accrual loans at March 31, 2016 and there were $242 thousand at December 31, 2015. There were no covered loans at March 31, 2016 or December 31, 2015 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, 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	$	412	$	483	$	1,290	$	2,185	$	478,929	$	481,114
Farmland	15		—		—		15		110,157		110,172
Non Farm, Non Residential	193		6		288		487		209,322		209,809
Agriculture	194		207		310		711		125,988		126,699
All Other Commercial	219		19		24		262		125,282		125,544
Residential
First Liens	3,346		168		1,768		5,282		283,242		288,524
Home Equity	27		—		109		136		35,779		35,915
Junior Liens	167		4		189		360		33,310		33,670
Multifamily	93		—		—		93		71,140		71,233
All Other Residential	19		—		—		19		8,740		8,759
Consumer
Motor Vehicle	2,305		294		190		2,789		252,686		255,475
All Other Consumer	64		54		6		124		22,117		22,241
TOTAL	$	7,054	$	1,235	$	4,174	$	12,463	$	1,756,692	$	1,769,155



	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

During the three months ended March 31, 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
January 1,	$	3,584		$	5,593		$	683		$	9,860
Added	—			80			88			168
Charged Off	—			(56		)	(20		)	(76		)
Payments	(55		)	(332		)	(56		)	(443		)
March 31,	$	3,529		$	5,285		$	695		$	9,509



				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

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 2016 or 2015 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, 2016 and 2015 did not result in any material charge-offs or additional provision expense.

The Corporation has allocated $24 thousand and $138 thousand of specific reserves to customers whose loan terms have been modified in troubled debt restructurings at both March 31, 2016 and 2015, respectively. The Corporation has not committed to lend additional amounts as of March 31, 2016 and 2015 to customers with outstanding loans that are classified as troubled debt restructurings. The charge-offs during the three months ended March 31, 2016 and 2015 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, 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:



	March 31, 2016
(Dollar amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
Commercial
Commercial & Industrial	$	426,230	$	17,236	$	32,298	$	581	$	3,419	$	479,764
Farmland	92,090		8,054		8,496		—		15		108,655
Non Farm, Non Residential	181,758		8,363		19,234		—		—		209,355
Agriculture	102,904		10,015		11,787		26		186		124,918
All Other Commercial	112,941		262		9,560		101		2,043		124,907
Residential
First Liens	96,680		3,405		9,171		619		177,738		287,613
Home Equity	10,445		360		911		10		24,136		35,862
Junior Liens	7,512		68		487		57		25,462		33,586
Multifamily	69,448		1,588		15		—		23		71,074
All Other Residential	449		—		23		—		8,266		8,738
Consumer
Motor Vehicle	10,342		307		550		—		243,145		254,344
All Other Consumer	2,868		47		116		12		19,084		22,127
TOTAL	$	1,113,667	$	49,705	$	92,648	$	1,406	$	503,517	$	1,760,943



	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