The following table presents the activity of the allowance for loan losses by portfolio segment for the years ended December 31, 2019, 2018 and 2017.



Allowance for Loan Losses:				December 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	621			(321		)	4,802			(402		)	4,700
Loans charged -off	(2,616		)	(1,050		)	(7,007		)	—			(10,673		)
Recoveries	1,092			1,360			3,028			—			5,480
Ending Balance	$	8,945		$	1,302		$	8,304		$	1,392		$	19,943



Allowance for Loan Losses:				December 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	83			60			5,295			330		5,768
Loans charged -off	(1,122		)	(841		)	(6,868		)	—		(8,831		)
Recoveries	606			639			2,345			—		3,590
Ending Balance	$	9,848		$	1,313		$	7,481		$	1,794	$	20,436



Allowance for Loan Losses:				December 31, 2017
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated			Total
Beginning balance	$	9,731		$	1,553		$	5,767		$	1,722		$	18,773
Provision for loan losses	745			(179		)	4,987			(258		)	5,295
Loans charged -off	(1,572		)	(761		)	(6,429		)	—			(8,762		)
Recoveries	1,377			842			2,384			—			4,603
Ending Balance	$	10,281		$	1,455		$	6,709		$	1,464		$	19,909

The following tables present the allocation of the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method at December 31, 2019 and 2018:



Allowance for Loan Losses:			December 31, 2019
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Individually evaluated for impairment	$	48	$	—	$	—	$	—	$	48
Collectively evaluated for impairment	8,897		1,302		8,304		1,392		19,895
Acquired with deteriorated credit quality	—		—		—		—		—
BALANCE AT END OF YEAR	$	8,945	$	1,302	$	8,304	$	1,392	$	19,943
Loans
(Dollar amounts in thousands)	Commercial		Residential		Consumer				Total
Individually evaluated for impairment	$	3,161	$	3,952	$	—			$	7,113
Collectively evaluated for impairment	1,584,169		680,069		387,655				2,651,893
Acquired with deteriorated credit quality	7,436		—		—				7,436
BALANCE AT END OF YEAR	$	1,594,766	$	684,021	$	387,655			$	2,666,442



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	—		—		—		—		—
BALANCE AT END OF YEAR	$	9,848	$	1,313	$	7,481	$	1,794	$	20,436
Loans
(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
BALANCE AT END OF YEAR	$	1,173,823	$	444,912	$	342,473			$	1,961,208

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



December 31, 2019					Allowance						Cash Basis
	Unpaid				for Loan		Average		Interest		Interest
	Principal		Recorded		Losses		Recorded		Income		Income
	Balance		Investment		Allocated		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	1,519	$	989	$	—	$	848	$	—	$	—
Farmland	1,997		1,997		—		1,999		—		—
Non Farm, Non Residential	—		—		—		—		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	27		27		—		461		—		—
Residential
First Liens	3,952		3,952		—		4,055		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	148		148		48		1,108		—		—
Farmland	—		—		—		84		—		—
Non Farm, Non Residential	—		—		—		—				—
Agriculture	—		—		—		138		—		—
All Other Commercial	—		—		—		—		—		—
Residential
First Liens	—		—		—		—		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	7,643	$	7,113	$	48	$	8,693	$	—	$	—



December 31, 2018					Allowance						Cash Basis
	Unpaid				for Loan		Average		Interest		Interest
	Principal		Recorded		Losses		Recorded		Income		Income
	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	$	—	$	—



December 31, 2017					Cash Basis
	Average		Interest		Interest
	Recorded		Income		Income
	Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	971	$	—	$	—
Farmland	1,265		—		—
Non Farm, Non Residential	2,781		—		—
Agriculture	239		—		—
All Other Commercial	1,308		—		—
Residential
First Liens	23		—		—
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	514		—		—
Farmland	669		—		—
Non Farm, Non Residential	131				—
Agriculture	279		—		—
All Other Commercial	—		—		—
Residential
First Liens	483		—		—
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
TOTAL	$	8,663	$	—	$	—

The following tables present the recorded investment in nonperforming loans by class of loans.



	December 31, 2019
	Loans Past		Troubled Debt
	Due Over 90 Day Still		Restructured
(Dollar amounts in thousands)	Accruing		Accrual		Non-accrual		Non-accrual
Commercial
Commercial & Industrial	$	—	$	—	$	11	$	2,191
Farmland	5		—		—		2,410
Non Farm, Non Residential	—		—		—		441
Agriculture	—		—		—		485
All Other Commercial	—		—		—		114
Residential
First Liens	625		3,007		396		2,876
Home Equity	12		—		—		61
Junior Liens	51		94		9		175
Multifamily	—		—		—		—
All Other Residential	738		—		—		203
Consumer
Motor Vehicle	227		—		15		138
All Other Consumer	4		239		444		452
TOTAL	$	1,662	$	3,340	$	875	$	9,546



	December 31, 2018
	Loans Past		Troubled Debt
	Due Over 90 Day Still		Restructured
(Dollar amounts in thousands)	Accruing		Accrual		Non-accrual		Non-accrual
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

During the years ending December 31, 2019, 2018, and 2017 the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDR's.



										2019
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Total
January 1,	$	145		$	4,043		$	618		$	4,806
Added	—			195			375			570
Charged Off	—			(24		)	(81		)	(105		)
Payments	(134		)	(729		)	(214		)	(1,077		)
December 31,	$	11		$	3,485		$	698		$	4,194



										2018
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Total
January 1,	$	2,709		$	3,611		$	714		$	7,034
Added	—			984			295			1,279
Charged Off	—			(16		)	(137		)	(153		)
Payments	(2,564		)	(536		)	(254		)	(3,354		)
December 31,	$	145		$	4,043		$	618		$	4,806



										2017
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Total
January 1,	$	3,386		$	4,447		$	732		$	8,565
Added	—			227			386			613
Charged Off	—			(289		)	(141		)	(430		)
Payments	(677		)	(774		)	(263		)	(1,714		)
December 31,	$	2,709		$	3,611		$	714		$	7,034

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, 2018 or 2017 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.

During the years ended December 31, 2019, 2018 and 2017 the Corporation modified 45, 53, and 43 loans respectively as troubled debt restructurings. All of the loans modified were smaller balance residential and consumer loans. There were no loans that were charged off within 12 months of the modification for 2019, 2018, or 2017.

The Corporation had no allocation of specific reserves to customers whose loan terms have been modified in troubled debt restructurings at December 31, 2019, 2018, and 2017. The Corporation has not committed to lend additional amounts as of December 31, 2019 and 2018 to customers with outstanding loans that are classified as troubled debt restructurings.

The following tables present the aging of the recorded investment in loans by past due category and class of loans.



					Greater
December 31, 2019	30-59 Days		60-89 Days		than 90 days		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	2,885	$	766	$	1,379	$	5,030	$	594,925	$	599,955
Farmland	132		—		2,089		2,221		137,730		139,951
Non Farm, Non Residential	3,749		104		—		3,853		398,854		402,707
Agriculture	277		128		—		405		162,794		163,199
All Other Commercial	—		—		109		109		288,845		288,954
Residential
First Liens	6,452		1,292		1,458		9,202		375,924		385,126
Home Equity	124		63		34		221		70,813		71,034
Junior Liens	384		43		137		564		54,533		55,097
Multifamily	—		—		—		—		148,282		148,282
All Other Residential	1,082		—		890		1,972		22,510		24,482
Consumer
Motor Vehicle	6,488		983		270		7,741		347,950		355,691
All Other Consumer	228		42		2		272		31,692		31,964
TOTAL	$	21,801	$	3,421	$	6,368	$	31,590	$	2,634,852	$	2,666,442



					Greater
December 31, 2018	30-59 Days		60-89 Days		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

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 December 31, 2019 and 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:



December 31, 2019			Special
(Dollar amounts in thousands)	Pass		Mention		Substandard		Doubtful		Not Rated		Total
Commercial
Commercial & Industrial	$	549,341	$	19,253	$	26,349	$	5	$	2,761	$	597,709
Farmland	119,858		8,673		8,644		—		100		137,275
Non Farm, Non Residential	381,404		4,424		12,269		—		3,678		401,775
Agriculture	127,144		4,507		27,490		—		985		160,126
All Other Commercial	283,266		3,141		1,120		—		35		287,562
Residential
First Liens	174,338		926		4,382		—		204,266		383,912
Home Equity	18,417		—		134		11		52,280		70,842
Junior Liens	2,839		64		178		76		51,817		54,974
Multifamily	146,497		112		1,315		—		19		147,943
All Other Residential	12,624		—		205		—		11,577		24,406
Consumer
Motor Vehicle	2,880		—		538		—		350,780		354,198
All Other Consumer	3,155		—		38		—		28,615		31,808
TOTAL	$	1,821,763	$	41,100	$	82,662	$	92	$	706,913	$	2,652,530



December 31, 2018			Special
(Dollar amounts in thousands)	Pass		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