NOTE 4. ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY

The following tables present the activity in the allowance for loan losses by portfolio segment for the three-month periods ended June 30, 2016 and 2015:

Commercial

Real Estate

Commercial

and

Agri-business

Consumer

and

Multifamily

and

Other

1-4 Family

Other

(dollars in thousands)

Industrial

Residential

Agricultural

Commercial

Mortgage

Consumer

Unallocated

Total

Three Months Ended June 30, 2016

Beginning balance, April 1

$20,465

$12,752

$2,454

$559

$3,586

$344

$3,124

$43,284

Provision for loan losses

605

(315)

589

(194)

(563)

(128)

Loans charged-off

(160)

(92)

(45)

(297)

Recoveries

200

260

Net loans charged-off

(135)

200

(89)

(17)

(37)

Ending balance

$20,935

$12,637

$3,047

$365

$2,934

$333

$2,996

$43,247

		Commercial
		Real Estate
	Commercial	and	Agri-business		Consumer
	and	Multifamily	and	Other	1-4 Family	Other
(dollars in thousands)	Industrial	Residential	Agricultural	Commercial	Mortgage	Consumer	Unallocated	Total
Three Months Ended June 30, 2015
Beginning balance, April 1	$23,024	$13,804	$1,627	$398	$3,313	$430	$3,081	$45,677
Provision for loan losses	(228)	(283)	248	(40)	160	(16)	159	0
Loans charged-off	(507)	(429)	0	0	(6)	(53)	0	(995)
Recoveries	71	20	6	0	6	31	0	134
Net loans charged-off	(436)	(409)	6	0	0	(22)	0	(861)
Ending balance	$22,360	$13,112	$1,881	$358	$3,473	$392	$3,240	$44,816

The following tables present the activity in the allowance for loan losses by portfolio segment for the six-month periods ended June 30, 2016 and 2015:

		Commercial
		Real Estate
	Commercial	and	Agri-business		Consumer
	and	Multifamily	and	Other	1-4 Family	Other
(dollars in thousands)	Industrial	Residential	Agricultural	Commercial	Mortgage	Consumer	Unallocated	Total
Six Months Ended June 30, 2016
Beginning balance, January 1	$21,564	$12,473	$2,445	$574	$3,395	$319	$2,840	$43,610
Provision for loan losses	(342)	121	593	(209)	(367)	48	156	0
Loans charged-off	(374)	(168)	0	0	(130)	(90)	0	(762)
Recoveries	87	211	9	0	36	56	0	399
Net loans charged-off	(287)	43	9	0	(94)	(34)	0	(363)
Ending balance	$20,935	$12,637	$3,047	$365	$2,934	$333	$2,996	$43,247

		Commercial
		Real Estate
	Commercial	and	Agri-business		Consumer
	and	Multifamily	and	Other	1-4 Family	Other
(dollars in thousands)	Industrial	Residential	Agricultural	Commercial	Mortgage	Consumer	Unallocated	Total
Six Months Ended June 30, 2015
Beginning balance, January 1	$22,785	$14,153	$1,790	$276	$3,459	$483	$3,316	$46,262
Provision for loan losses	328	(621)	81	204	135	(51)	(76)	0
Loans charged-off	(876)	(459)	0	(122)	(140)	(106)	0	(1,703)
Recoveries	123	39	10	0	19	66	0	257
Net loans charged-off	(753)	(420)	10	(122)	(121)	(40)	0	(1,446)
Ending balance	$22,360	$13,112	$1,881	$358	$3,473	$392	$3,240	$44,816

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2016 and December 31, 2015:

		Commercial
		Real Estate
	Commercial	and	Agri-business		Consumer
	and	Multifamily	and	Other	1-4 Family	Other
(dollars in thousands)	Industrial	Residential	Agricultural	Commercial	Mortgage	Consumer	Unallocated	Total
June 30, 2016
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$2,704	$313	$0	$4	$369	$49	$0	$3,439
Collectively evaluated for impairment	18,231	12,324	3,047	361	2,565	284	2,996	39,808
Total ending allowance balance	$20,935	$12,637	$3,047	$365	$2,934	$333	$2,996	$43,247

Loans:
Loans individually evaluated for impairment	$6,051	$9,197	$2,498	$12	$1,451	$57	$0	$19,266
Loans collectively evaluated for impairment	1,220,667	1,178,337	306,333	82,770	338,293	52,331	0	3,178,731
Total ending loans balance	$1,226,718	$1,187,534	$308,831	$82,782	$339,744	$52,388	$0	$3,197,997

		Commercial
		Real Estate
	Commercial	and	Agri-business		Consumer
	and	Multi-family	and	Other	1-4 Family	Other
(dollars in thousands)	Industrial	Residential	Agricultural	Commercial	Mortgage	Consumer	Unallocated	Total
December 31, 2015
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$2,781	$465	$0	$5	$358	$50	$0	$3,659
Collectively evaluated for impairment	18,783	12,008	2,445	569	3,037	269	2,840	39,951
Total ending allowance balance	$21,564	$12,473	$2,445	$574	$3,395	$319	$2,840	$43,610

Loans:
Loans individually evaluated for impairment	$8,286	$9,823	$471	$12	$1,927	$60	$0	$20,579
Loans collectively evaluated for impairment	1,171,407	1,119,150	305,707	85,059	330,072	48,955	0	3,060,350
Total ending loans balance	$1,179,693	$1,128,973	$306,178	$85,071	$331,999	$49,015	$0	$3,080,929

The following table presents loans individually evaluated for impairment by class of loans as of June 30, 2016:

	Unpaid		Allowance for
	Principal	Recorded	Loan Losses
(dollars in thousands)	Balance	Investment	Allocated
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$541	$387	$0
Non-working capital loans	2,307	540	0
Commercial real estate and multi-family residential loans:
Owner occupied loans	2,696	2,515	0
Nonowner occupied loans	4,869	4,871	0
Agri-business and agricultural loans:
Loans secured by farmland	969	471	0
Loans for ag production	2,027	2,027	0
Consumer 1-4 family loans:
Closed end first mortgage loans	214	108	0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	825	825	441
Non-working capital loans	4,701	4,299	2,263
Commercial real estate and multi-family residential loans:
Construction and land development loans	256	256	14
Owner occupied loans	1,173	1,172	169
Multifamily loans	383	383	130
Agri-business and agricultural loans:
Other commercial loans	12	12	4
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	1,409	1,343	369
Other consumer loans	58	57	49
Total	$22,440	$19,266	$3,439

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2015:

	Unpaid		Allowance for
	Principal	Recorded	Loan Losses
(dollars in thousands)	Balance	Investment	Allocated
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$20	$20	$0
Non-working capital loans	2,390	623	0
Commercial real estate and multi-family residential loans:
Owner occupied loans	3,762	3,223	0
Nonowner occupied loans	4,894	4,898	0
Agri-business and agricultural loans:
Loans secured by farmland	969	471	0
Consumer 1-4 family loans:
Closed end first mortgage loans	45	45	0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	1,318	1,318	535
Non-working capital loans	8,617	6,325	2,246
Commercial real estate and multi-family residential loans:
Construction and land development loans	364	364	71
Owner occupied loans	949	949	232
Multifamily loans	389	389	162
Other commercial loans	12	12	5
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	1,695	1,629	331
Open end and junior lien loans	253	253	27
Other consumer loans	60	60	50
Total	$25,737	$20,579	$3,659

The following table presents loans individually evaluated for impairment by class of loans as of and for the three-month period ended June 30, 2016:

			Cash Basis
	Average	Interest	Interest
	Recorded	Income	Income
(dollars in thousands)	Investment	Recognized	Recognized
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$493	$0	$0
Non-working capital loans	557	0	0
Commercial real estate and multi-family residential loans:
Owner occupied loans	2,536	0	0
Nonowner occupied loans	4,783	88	89
Agri-business and agricultural loans:
Loans secured by farmland	471	0	0
Loans for ag production	2,032	5	4
Consumer 1-4 family loans:
Closed end first mortgage loans	149	0	0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	841	5	5
Non-working capital loans	4,077	33	34
Commercial real estate and multi-family residential loans:
Construction and land development loans	297	4	2
Owner occupied loans	975	0	0
Multifamily loans	383	5	5
Agri-business and agricultural loans:
Other commercial loans	12	2	0
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	1,363	10	14
Open end and junior lien loans	165	0	0
Other consumer loans	58	1	1
Total	$19,192	$153	$154

The following table presents loans individually evaluated for impairment by class of loans as of and for the three-month period ended June 30, 2015:

			Cash Basis
	Average	Interest	Interest
	Recorded	Income	Income
(dollars in thousands)	Investment	Recognized	Recognized
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$21	$0	$0
Non-working capital loans	767	0	0
Commercial real estate and multi-family residential loans:
Owner occupied loans	2,865	0	0
Nonowner occupied loans	5,590	26	27
Agri-business and agricultural loans:
Loans secured by farmland	479	0	0
Consumer 1-4 family loans:
Closed end first mortgage loans	329	0	0
Open end and junior lien loans	245	0	0
Other consumer loans	4	0	0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	994	7	7
Non-working capital loans	9,670	112	124
Commercial real estate and multi-family residential loans:
Construction and land development loans	373	4	5
Owner occupied loans	2,753	0	0
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	2,687	16	16
Open end and junior lien loans	34	0	0
Other consumer loans	111	1	1
Total	$26,922	$166	$180

The following table presents loans individually evaluated for impairment by class of loans as of and for the six-month period ended June 30, 2016:

			Cash Basis
	Average	Interest	Interest
	Recorded	Income	Income
(dollars in thousands)	Investment	Recognized	Recognized
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$256	$0	$0
Non-working capital loans	615	0	0
Commercial real estate and multi-family residential loans:
Owner occupied loans	2,630	0	0
Nonowner occupied loans	4,796	117	112
Agri-business and agricultural loans:
Loans secured by farmland	471	0	0
Loans for ag production	1,016	5	4
Consumer 1-4 family loans:
Closed end first mortgage loans	98	0	0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	1,097	10	10
Non-working capital loans	4,356	67	68
Commercial real estate and multi-family residential loans:
Construction and land development loans	318	7	5
Owner occupied loans	959	0	0
Nonowner occupied loans	38	0	0
Multifamily loans	384	10	10
Agri-business and agricultural loans:
Other commercial loans	12	2	0
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	1,495	25	25
Open end and junior lien loans	208	0	0
Other consumer loans	58	2	2
Total	$18,807	$245	$236

The following table presents loans individually evaluated for impairment by class of loans as of and for the six-month period ended June 30, 2015:

			Cash Basis
	Average	Interest	Interest
	Recorded	Income	Income
(dollars in thousands)	Investment	Recognized	Recognized
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$21	$0	$0
Non-working capital loans	565	1	1
Commercial real estate and multi-family residential loans:
Construction and land development loans	263	0	0
Owner occupied loans	1,704	0	0
Nonowner occupied loans	4,053	54	56
Agri-business and agricultural loans:
Loans secured by farmland	381	0	0
Consumer 1-4 family loans:
Closed end first mortgage loans	244	0	0
Open end and junior lien loans	292	0	0
Residential construction loans	21	0	0
Other consumer loans	2	0	0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	1,003	16	14
Non-working capital loans	11,118	234	247
Commercial real estate and multi-family residential loans:
Construction and land development loans	411	8	9
Owner occupied loans	4,201	21	22
Nonowner occupied loans	1,635	0	0
Agri-business and agricultural loans:
Loans secured by farmland	100	0	0
Other commercial loans	5	0	0
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	2,850	33	30
Open end and junior lien loans	34	0	0
Other consumer loans	116	2	2
Total	$29,019	$369	$381

The following table presents the aging of the recorded investment in past due loans as of June 30, 2016 by class of loans:

		30-89	Greater than
	Loans Not	Days	90 Days		Total
(dollars in thousands)	Past Due	Past Due	Past Due	Nonaccrual	Past Due	Total
Commercial and industrial loans:
Working capital lines of credit loans	$596,931	$501	$0	$401	$902	$597,833
Non-working capital loans	626,533	59	0	2,293	2,352	628,885
Commercial real estate and multi-family
residential loans:
Construction and land development loans	220,519	0	0	0	0	220,519
Owner occupied loans	453,445	82	0	3,598	3,680	457,125
Nonowner occupied loans	395,059	0	0	290	290	395,349
Multifamily loans	114,541	0	0	0	0	114,541
Agri-business and agricultural loans:
Loans secured by farmland	146,058	0	0	471	471	146,529
Loans for agricultural production	160,275	0	0	2,027	2,027	162,302
Other commercial loans	82,782	0	0	0	0	82,782
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	163,119	898	0	246	1,144	164,263
Open end and junior lien loans	165,815	117	0	0	117	165,932
Residential construction loans	9,549	0	0	0	0	9,549
Other consumer loans	52,246	142	0	0	142	52,388
Total	$3,186,872	$1,799	$0	$9,326	$11,125	$3,197,997

The following table presents the aging of the recorded investment in past due loans as of December 31, 2015 by class of loans:

		30-89	Greater than
	Loans Not	Days	90 Days		Total
(dollars in thousands)	Past Due	Past Due	Past Due	Nonaccrual	Past Due	Total
Commercial and industrial loans:
Working capital lines of credit loans	$579,081	$350	$0	$913	$1,263	$580,344
Non-working capital loans	595,154	0	0	4,195	4,195	599,349
Commercial real estate and multi-family
residential loans:
Construction and land development loans	230,336	0	0	0	0	230,336
Owner occupied loans	407,229	310	0	4,172	4,482	411,711
Nonowner occupied loans	404,146	423	0	3,000	3,423	407,569
Multi-family loans	79,357	0	0	0	0	79,357
Agri-business and agricultural loans:
Loans secured by farmland	163,911	0	0	471	471	164,382
Loans for agricultural production	141,706	90	0	0	90	141,796
Other commercial loans	85,071	0	0	0	0	85,071
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	156,525	1,187	0	49	1,236	157,761
Open end and junior lien loans	164,582	83	0	253	336	164,918
Residential construction loans	9,320	0	0	0	0	9,320
Other consumer loans	48,687	328	0	0	328	49,015
Total	$3,065,105	$2,771	$0	$13,053	$15,824	$3,080,929

Troubled Debt Restructurings:

Troubled debt restructured loans are included in the totals for impaired loans. The Company has allocated $2.4 million and $2.3 million of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of June 30, 2016 and December 31, 2015. The Company is not committed to lend additional funds to debtors whose loans have been modified in a troubled debt restructuring.

	June 30	December 31
(dollars in thousands)	2016	2015
Accruing troubled debt restructured loans	$8,647	$6,260
Nonaccrual troubled debt restructured loans	6,040	10,914
Total troubled debt restructured loans	$14,687	$17,174

During the three-months ended June 30, 2016, certain loans were modified as troubled debt restructurings. The modified terms of these loans include one or a combination of the following: inadequate compensation for the terms of the restructure or renewal; a modification of the repayment terms which delays principal repayment for some period; or renewal terms offered to borrowers in financial distress where no additional credit enhancements were obtained at the time of renewal.

During the three months ended June 30, 2016, there were renewal terms, which are considered additional concessions, offered to three borrowers under financial duress with previously identified troubled debt restructured loans which did not require additional compensation or consideration, and the terms offered would not have been readily available in the marketplace for loans bearing a similar risk profile. In these instances, it was determined that a concession had been granted. The loan to one of the borrowers was for a commercial real estate building where the collateral value and cash flows from the company occupying the building does not support the loan with a recorded investment of $374,000. The loans to the other two borrowers are for commercial and industrial non-working capital loans with recorded investments of $574,000. These concessions are not included in the table below.

Additional concessions were granted to borrowers with previously identified troubled debt restructured loans during the three-months ended March 31, 2016. The loans to two of the borrowers are for commercial real estate buildings where the collateral value and cash flows from the companies occupying the buildings do not support the loans with recorded investments of $542,000. The other loans were to a borrower engaged in land development, where the aggregate recorded investment totaled $484,000. These concessions are not included in table below.

The following table presents loans by class modified as new troubled debt restructurings that occurred during the three months ended June 30, 2016:

				Modified Repayment Terms
		Pre-Modification	Post-Modification		Extension
		Outstanding	Outstanding		Period or
	Number of	Recorded	Recorded	Number of	Range
(dollars in thousands)	Loans	Investment	Investment	Loans	(in months)
Troubled Debt Restructurings
Commercial and industrial loans:
Non-working capital loans	3	$775	$775	3	9-15
Commercial real estate and multi-
family residential loans:
Owner occupied loans	1	305	305	1	13
Total	4	$1,080	$1,080	4	9-15

The following table presents loans by class modified as new troubled debt restructurings that occurred during the six months ended June 30, 2016:

				Modified Repayment Terms
		Pre-Modification	Post-Modification		Extension
		Outstanding	Outstanding		Period or
	Number of	Recorded	Recorded	Number of	Range
(dollars in thousands)	Loans	Investment	Investment	Loans	(in months)
Troubled Debt Restructurings
Commercial and industrial loans:
Non-working capital loans	3	$775	$775	3	9-15
Commercial real estate and multi-
family residential loans:
Owner occupied loans	2	640	640	2	13-15
Total	5	$1,415	$1,415	5	9-15

For the three months ended June 30, 2016, the commercial and industrial troubled debt restructurings described above increased the allowance for loan losses by $182,000 and the commercial real estate and multi-family residential loan troubled debt restructuring described above decreased the allowance for loan losses by $145,000. For the six months ended June 30, 2016, the commercial and industrial troubled debt restructurings described above increased the allowance for loan losses by $684,000 and the commercial real estate and multi-family residential loan troubled debt restructuring described above increased the allowance for loan losses by $15,000.

No charge-offs resulted from any troubled debt restructurings described above during the three or six month periods ended June 30, 2016.

During the quarter ended June 30, 2015, certain loans were modified as troubled debt restructurings. The modified terms of these loans include one or a combination of the following: inadequate compensation for the terms of the restructure or renewal; a modification of the repayment terms which delays principal repayment for some period; or renewal terms offered to borrowers in financial distress where no additional credit enhancements were obtained at the time of renewal.

There were renewal terms offered to two borrowers under financial duress which did not require additional compensation or consideration, and the terms offered would not have been readily available in the marketplace for loans bearing similar risk profiles. In these instances, it was determined that a concession had been granted. It is difficult to quantify the concessions granted due to an absence of readily available market terms to be used for comparison. These loans were both commercial and industrial working capital loans with recorded investments of $379,000 and $185,000, respectively.

During the quarter ended March 31, 2015 one loan was modified as a troubled debt restructuring. There were renewal terms offered to the one borrower under financial duress which did not require additional compensation or consideration, and the terms offered would not have been readily available in the marketplace for loans bearing similar risk profiles. In this instance, it was determined that a concession had been granted. It is difficult to quantify the concession granted due to an absence of readily available market terms to be used for comparison. The loan to the borrower is for a commercial real estate building where the collateral value and cash flows from the company occupying the building did not support the loan with a recorded investment of $788,000.

The following table presents loans by class modified as new troubled debt restructurings that occurred during the three months ended June 30, 2015:

				Modified Repayment Terms
		Pre-Modification	Post-Modification		Extension
		Outstanding	Outstanding		Period or
	Number of	Recorded	Recorded	Number of	Range
(dollars in thousands)	Loans	Investment	Investment	Loans	(in months)
Troubled Debt Restructurings
Commercial and industrial loans:
Working capital lines of credit loans	2	$564	$564
Non-working capital loans	1	783	783	1	12
Commercial real estate and multi-
family residential loans:
Owner occupied loans	1	67	67	1	6
Total	4	$1,414	$1,414	2	6-12

The following table presents loans by class modified as new troubled debt restructurings that occurred during the six months ended June 30, 2015:

				Modified Repayment Terms
		Pre-Modification	Post-Modification		Extension
		Outstanding	Outstanding		Period or
	Number of	Recorded	Recorded	Number of	Range
(dollars in thousands)	Loans	Investment	Investment	Loans	(in months)
Troubled Debt Restructurings
Commercial and industrial loans:
Working capital lines of credit loans	2	$564	$564
Non-working capital loans	1	783	783	1	12
Commercial real estate and multi-
family residential loans:
Owner occupied loans	2	855	855	1	6
Total	5	$2,202	$2,202	2	6-12

For the three months ended June 30, 2015, the commercial and industrial troubled debt restructurings described above increased the allowance for loan losses by $49,000 and the commercial real estate and multi-family residential loan troubled debt restructuring described above decreased the allowance for loan losses by $28,000. For the six months ended June 30, 2015, the commercial and industrial troubled debt restructurings described above increased the allowance for loan losses by $170,000 and the commercial real estate and multi-family residential loan troubled debt restructuring described above decreased the allowance for loan losses by $22,000.

No charge-offs resulted from the troubled debt restructuring described above during the three or six month periods ended June 30, 2015.

There were no troubled debt restructurings that had payment defaults within the twelve months following modification during the three or six month periods ended June 30, 2016 and 2015.

Credit Quality Indicators:

The Company 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 Company analyzes commercial loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis for Special Mention, Substandard and Doubtful grade loans and annually on Pass grade loans over $150,000.

The Company 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 paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard, with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be Pass rated loans with the exception of consumer troubled debt restructurings which are evaluated and listed with Substandard commercial grade loans and consumer nonaccrual loans which are evaluated individually and listed with Not Rated loans. Loans listed as Not Rated are consumer loans or commercial loans with consumer characteristics included in groups of homogenous loans which

are analyzed for credit quality indicators utilizing delinquency status. As of June 30, 2016, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

		Special			Not
(dollars in thousands)	Pass	Mention	Substandard	Doubtful	Rated	Total
Commercial and industrial loans:
Working capital lines of credit loans	$544,235	$38,870	$14,728	$0	$0	$597,833
Non-working capital loans	577,365	32,720	15,204	0	3,596	628,885
Commercial real estate and multi-
family residential loans:
Construction and land development loans	219,111	1,125	283	0	0	220,519
Owner occupied loans	416,103	27,431	13,591	0	0	457,125
Nonowner occupied loans	389,413	3,634	2,302	0	0	395,349
Multifamily loans	114,158	0	383	0	0	114,541
Agri-business and agricultural loans:
Loans secured by farmland	144,556	1,502	471	0	0	146,529
Loans for agricultural production	159,512	763	2,027	0	0	162,302
Other commercial loans	82,765	0	12	0	5	82,782
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	46,167	126	1,946	0	116,024	164,263
Open end and junior lien loans	7,736	0	0	0	158,196	165,932
Residential construction loans	0	0	0	0	9,549	9,549
Other consumer loans	10,084	0	57	0	42,247	52,388
Total	$2,711,205	$106,171	$51,004	$0	$329,617	$3,197,997

As of December 31, 2015, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

		Special			Not
(dollars in thousands)	Pass	Mention	Substandard	Doubtful	Rated	Total
Commercial and industrial loans:
Working capital lines of credit loans	$538,899	$32,601	$8,844	$0	$0	$580,344
Non-working capital loans	549,771	35,910	10,566	0	3,102	599,349
Commercial real estate and multi-
family residential loans:
Construction and land
development loans	227,996	2,340	0	0	0	230,336
Owner occupied loans	378,847	23,522	9,342	0	0	411,711
Nonowner occupied loans	394,387	10,953	2,229	0	0	407,569
Multi-family loans	78,968	0	389	0	0	79,357
Agri-business and agricultural loans:
Loans secured by farmland	163,911	0	471	0	0	164,382
Loans for agricultural production	141,796	0	0	0	0	141,796
Other commercial loans	85,056	0	12	0	3	85,071
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	43,231	126	1,769	0	112,635	157,761
Open end and junior lien loans	8,373	0	1,616	0	154,929	164,918
Residential construction loans	0	0	0	0	9,320	9,320
Other consumer loans	13,940	0	60	0	35,015	49,015
Total	$2,625,175	$105,452	$35,298	$0	$315,004	$3,080,929