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, 2020
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated		Total
Beginning balance	$	8,945		$	1,302		$	8,304		$	1,392	$	19,943
Provision for loan losses	520			251			1,780			139		2,690
Loans charged -off	(533		)	(257		)	(2,114		)	—		(2,904		)
Recoveries	391			156			787			—		1,334
Ending Balance	$	9,323		$	1,452		$	8,757		$	1,531	$	21,063



Allowance for Loan Losses:	March 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	(640		)	296			941			873		1,470
Loans charged -off	(256		)	(302		)	(1,551		)	—		(2,109		)
Recoveries	287			185			691			—		1,163
Ending Balance	$	9,239		$	1,492		$	7,562		$	2,667	$	20,960

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, 2020 and December 31, 2019.



Allowance for Loan Losses	March 31, 2020
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Individually evaluated for impairment	$	42	$	—	$	—	$	—	$	42
Collectively evaluated for impairment	9,281		1,452		8,757		1,531		21,021
Acquired with deteriorated credit quality	—		—		—		—		—
Ending Balance	$	9,323	$	1,452	$	8,757	$	1,531	$	21,063



Loans:	March 31, 2020
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
Individually evaluated for impairment	$	6,152	$	3,579	$	—	$	9,731
Collectively evaluated for impairment	1,563,334		661,353		389,649		2,614,336
Acquired with deteriorated credit quality	6,549		—		—		6,549
Ending Balance	$	1,576,035	$	664,932	$	389,649	$	2,630,616



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	—		—		—		—		—
Ending Balance	$	8,945	$	1,302	$	8,304	$	1,392	$	19,943



Loans	December 31, 2019
(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
Ending Balance	$	1,594,766	$	684,021	$	387,655	$	2,666,442

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



					March 31, 2020
	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	$	1,679	$	1,149	$	—	$	1,069	$	—	$	—
Farmland	1,324		1,324		—		1,661		—		—
Non Farm, Non Residential	3,512		3,512		—		1,756		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	26		26		—		27		—		—
Residential
First Liens	3,579		3,579		—		3,766		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	141		141		42		145		—		—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	—		—		—		—		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	—		—		—		—		—		—
Residential
First Liens	—		—		—		—		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	10,261	$	9,731	$	42	$	8,424	$	—	$	—



					December 31, 2019
	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	$	1,519	$	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	$	—	$	—




	Three Months Ended March 31, 2020
	Average Recorded		Interest Income		Cash Basis Interest Income
(Dollar amounts in thousands)	Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	1,069	$	—	$	—
Farmland	1,661		—		—
Non Farm, Non Residential	1,756		—		—
Agriculture	—		—		—
All Other Commercial	27		—		—
Residential
First Liens	3,766		—		—
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	145		—		—
Farmland	—		—		—
Non Farm, Non Residential	—		—		—
Agriculture	—		—		—
All Other Commercial	—		—		—
Residential
First Liens	—		—		—
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
TOTAL	$	8,424	$	—	$	—



	Three Months Ended March 31, 2019
	Average Recorded		Interest Income		Cash Basis Interest Income
(Dollar amounts in thousands)	Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	788	$	—	$	—
Farmland	930		—		—
Non Farm, Non Residential	2,442		—		—
Agriculture	116		—		—
All Other Commercial	1,218		—		—
Residential
First Liens	2,032		—		—
Home Equity	—		—		—
Junior Liens	18		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	488		—		—
Farmland	3,041		—		—
Non Farm, Non Residential	—		—		—
Agriculture	537		—		—
All Other Commercial	—		—		—
Residential
First Liens	221		—		—
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
TOTAL	$	11,831	$	—	$	—

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



	March 31, 2020
	Loans Past Due Over 90 Days Still		Troubled Debt Restructured				Nonaccrual Excluding
(Dollar amounts in thousands)	Accruing		Accruing		Nonaccrual		TDR
Commercial
Commercial & Industrial	$	21	$	—	$	4	$	2,882
Farmland	6		—		—		1,534
Non Farm, Non Residential	—		—		—		3,980
Agriculture	—		—		—		3
All Other Commercial	—		—		—		62
Residential
First Liens	1,138		2,960		401		2,604
Home Equity	136		—		—		43
Junior Liens	21		83		8		99
Multifamily	—		—		—		—
All Other Residential	41		—		—		48
Consumer
Motor Vehicle	115		—		14		233
All Other Consumer	12		190		510		523
TOTAL	$	1,490	$	3,233	$	937	$	12,011



	December 31, 2019
	Loans Past Due Over 90 Days Still		Troubled Debt Restructured				Nonaccrual Excluding
(Dollar amounts in thousands)	Accruing		Accruing		Nonaccrual		TDR
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

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, 2020
	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	$	3,593	$	2,695	$	1,635	$	7,923	$	609,765	$	617,688
Farmland	115		—		1,417		1,532		133,247		134,779
Non Farm, Non Residential	4,842		7		44		4,893		379,990		384,883
Agriculture	—		6		—		6		144,779		144,785
All Other Commercial	929		—		43		972		292,928		293,900
Residential
First Liens	6,972		344		1,497		8,813		365,938		374,751
Home Equity	181		23		157		361		68,207		68,568
Junior Liens	379		4		29		412		55,153		55,565
Multifamily	1,621		—		—		1,621		143,192		144,813
All Other Residential	69		—		41		110		21,125		21,235
Consumer
Motor Vehicle	5,215		534		199		5,948		353,305		359,253
All Other Consumer	319		15		14		348		30,048		30,396
TOTAL	$	24,235	$	3,628	$	5,076	$	32,939	$	2,597,677	$	2,630,616



	December 31, 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	$	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

During the three months ended March 31, 2020 and 2019, the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDRs.



				2020
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Total
January 1,	$	11		$	3,485		$	698		$	4,194
Added	—			60			94			154
Charged Off	—			(6		)	(35		)	(41		)
Payments	(7		)	(101		)	(43		)	(151		)
March 31,	$	4		$	3,438		$	714		$	4,156



			2019
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
January 1,	145		4,043		618		4,806
Added	—		122		71		193
Charged Off	—		(16	)	(16	)	(32	)
Payments	(9	)	(130	)	(54	)	(193	)
March 31,	136		4,019		619		4,774

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 2020 or 2019 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, 2020 and 2019 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 March 31, 2020 and 2019. The Corporation has not committed to lend additional amounts as of March 31, 2020 and 2019 to customers with outstanding loans that are classified as troubled debt restructurings. None of the charge-offs during the three months ended March 31, 2020 and 2019 were of restructurings that had occurred in the previous 12 months.

The CARES Act includes a provision that permits a financial institution to elect to suspend temporarily troubled debt restructuring accounting under ASC Subtopic 310-40 in certain circumstances (“section 4013”). To be eligible under section 4013, a loan modification must be (1) related to COVID-19; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 31, 2020. In response to this section of the CARES Act, the federal banking agencies issued a revised interagency statement on April 7, 2020 that, in consultation with the Financial Accounting Standards Board, confirmed that for loans not subject to section 4013, short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not troubled debt restructurings under ASC Subtopic 310-40. This includes short-term (e.g., up to six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. In the first quarter ending March 31, 2020, 81 loans totaling $110 million were modified, related to COVID-19, that were not considered troubled debt restructurings.

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 March 31, 2020 and December 31, 2019, and based on the most recent analysis performed, the risk category of loans by class of loans are as follows:



	March 31, 2020
(Dollar amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
Commercial
Commercial & Industrial	$	568,957	$	16,870	$	22,758	$	—	$	7,333	$	615,918
Farmland	115,976		9,213		7,753		—		62		133,004
Non Farm, Non Residential	366,697		4,427		12,149		—		685		383,958
Agriculture	118,014		3,999		19,193		—		498		141,704
All Other Commercial	288,600		3,095		1,025		—		36		292,756
Residential
First Liens	103,047		1,026		4,089		—		265,416		373,578
Home Equity	2,466		—		170		—		65,743		68,379
Junior Liens	2,189		34		171		—		53,045		55,439
Multifamily	143,064		110		1,315		—		—		144,489
All Other Residential	8,255		—		52		—		12,868		21,175
Consumer
Motor Vehicle	495		—		546		—		356,688		357,729
All Other Consumer	369		—		50		—		29,832		30,251
TOTAL	$	1,718,129	$	38,774	$	69,271	$	—	$	792,206	$	2,618,380



	December 31, 2019
(Dollar amounts in thousands)	Pass		Special 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