NOTE 4 – ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY

The following tables present the activity and balance in the allowance for loan losses by portfolio segment for the year ended December 31, 2016, 2015 and 2014:

				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, 2016
Beginning balance	$	21,564		$	12,473		$	2,445	$	574		$	3,395		$	319		$	2,840		$	43,610
Provision for loan losses		(952	)		1,209			1,068		(113	)		(197	)		188			(53	)		1,150
Loans charged-off		(801	)		(566	)		0		0			(478	)		(210	)		0			(2,055	)
Recoveries		461			336			19		0			107			90			0			1,013
Net loans charged-off		(340	)		(230	)		19		0			(371	)		(120	)		0			(1,042	)
Ending balance	$	20,272		$	13,452		$	3,532	$	461		$	2,827		$	387		$	2,787		$	43,718

				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
Beginning balance	$	22,785		$	14,153		$	1,790	$	276		$	3,459		$	483		$	3,316		$	46,262
Provision for loan losses		(117	)		(673	)		635		420			246			(35	)		(476	)		0
Loans charged-off		(1,320	)		(1,114	)		0		(122	)		(362	)		(255	)		0			(3,173	)
Recoveries		216			107			20		0			52			126			0			521
Net loans charged-off		(1,104	)		(1,007	)		20		(122	)		(310	)		(129	)		0			(2,652	)
Ending balance	$	21,564		$	12,473		$	2,445	$	574		$	3,395		$	319		$	2,840		$	43,610

				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, 2014
Beginning balance	$	21,005		$	18,556		$	1,682	$	391		$	3,046		$	608		$	3,509		$	48,797
Provision for loan losses		2,307			(2,771	)		88		(115	)		699			(15	)		(193	)		0
Loans charged-off		(1,441	)		(2,560	)		0		0			(439	)		(245	)		0			(4,685	)
Recoveries		914			928			20		0			153			135			0			2,150
Net loans charged-off		(527	)		(1,632	)		20		0			(286	)		(110	)		0			(2,535	)
Ending balance	$	22,785		$	14,153		$	1,790	$	276		$	3,459		$	483		$	3,316		$	46,262

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

			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, 2016
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	3,191	$	576	$	0	$	0	$	296	$	51	$	0	$	4,114
Collectively evaluated for impairment		17,081		12,876		3,532		461		2,531		336		2,787		39,604
Total ending allowance balance	$	20,272	$	13,452	$	3,532	$	461	$	2,827	$	387	$	2,787	$	43,718

Loans:
Loans individually evaluated for impairment	$	9,776	$	9,151	$	283	$	0	$	1,427	$	55	$	0	$	20,692
Loans collectively evaluated for impairment		1,258,682		1,290,131		394,621		98,265		347,408		61,128		0		3,450,235
Total ending loans balance	$	1,268,458	$	1,299,282	$	394,904	$	98,265	$	348,835	$	61,183	$	0	$	3,470,927

			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 December 31, 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	$	951	$	494	$	0
Non-working capital loans		3,007		1,358		0
Commercial real estate and multi-family residential loans:
Construction and land development loans		126		126		0
Owner occupied loans		2,868		2,620		0
Nonowner occupied loans		4,632		4,633		0
Agri-business and agricultural loans:
Loans secured by farmland		603		283		0
Consumer 1-4 family loans:
Closed end first mortgage loans		161		147		0
Open end and junior lien loans		408		195		0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		1,100		1,099		465
Non-working capital loans		6,827		6,825		2,726
Commercial real estate and multi-family residential loans:
Owner occupied loans		1,773		1,772		576
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		1,152		1,085		296
Other consumer loans		55		55		51
Total	$	23,663	$	20,692	$	4,114

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 December 31, 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	$	331	$	15	$	14
Non-working capital loans		996		16		13
Commercial real estate and multi-family residential loans:
Construction and land development loans		114		10		10
Owner occupied loans		2,555		3		3
Nonowner occupied loans		4,732		292		286
Multifamily loans		8		0		0
Agri-business and agricultural loans:
Loans secured by farmland		393		0		0
Loans for ag production		677		5		4
Other commercial loans		1		0		0
Consumer 1-4 family loans:
Closed end first mortgage loans		91		2		2
Open end and junior lien loans		58		0		0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		1,199		33		30
Non-working capital loans		4,685		151		151
Commercial real estate and multi-family residential loans:
Construction and land development loans		186		0		0
Owner occupied loans		1,143		3		3
Nonowner occupied loans		19		0		0
Multifamily loans		256		12		11
Agri-business and agricultural loans:
Other commercial loans		8		0		1
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		1,392		36		34
Open end and junior lien loans		166		0		0
Other consumer loans		57		4		4
Total	$	19,067	$	582	$	566

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 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		619		2		2
Commercial real estate and multi-family residential loans:
Construction and land development loans		132		0		0
Owner occupied loans		2,336		8		9
Nonowner occupied loans		4,635		105		108
Agri-business and agricultural loans:
Loans secured by farmland		426		0		0
Consumer 1-4 family loans:
Closed end first mortgage loans		261		0		0
Open end and junior lien loans		189		0		0
Residential construction loans		11		0		0
Other consumer loans		3		0		0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		1,133		24		23
Non-working capital loans		8,705		326		333
Commercial real estate and multi-family residential loans:
Construction and land development loans		382		16		17
Owner occupied loans		3,050		13		13
Nonowner occupied loans		817		0		0
Multifamily loans		32		0		0
Agri-business and agricultural loans:
Loans secured by farmland		50		0		0
Other commercial loans		3		0		0
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		2,357		60		60
Open end and junior lien loans		82		0		0
Other consumer loans		100		4		4
Total	$	25,344	$	558	$	569

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2014:

					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	$	154	$	1	$	1
Non-working capital loans		174		1		1
Commercial real estate and multi-family residential loans:
Construction and land development loans		265		0		0
Owner occupied loans		218		0		0
Nonowner occupied loans		1,019		139		139
Agri-business and agricultural loans:
Loans secured by farmland		240		0		0
Consumer 1-4 family loans:
Closed end first mortgage loans		697		0		0
Open end and junior lien loans		210		0		0
Residential construction loans		139		0		0
Other consumer loans		1		0		0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		1,845		66		57
Non-working capital loans		13,806		513		513
Commercial real estate and multi-family residential loans:
Construction and land development loans		1,977		45		46
Owner occupied loans		3,416		72		70
Nonowner occupied loans		7,220		0		0
Agri-business and agricultural loans:
Loans secured by farmland		381		0		0
Other commercial loans		5		0		0
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		2,680		74		77
Open end and junior lien loans		63		0		0
Other consumer loans		98		2		2
Total	$	34,608	$	913	$	906

Nonaccrual loans and loans past due 90 days still on accrual 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 past due loans as of December 31, 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	$	624,213	$	9	$	0	$	140	$	149	$	624,362
Non-working capital loans		642,014		0		0		2,082		2,082		644,096
Commercial real estate and multi-family
residential loans:
Construction and land development loans		244,411		0		0		0		0		244,411
Owner occupied loans		465,789		0		0		3,598		3,598		469,387
Nonowner occupied loans		457,880		0		0		122		122		458,002
Multi-family loans		127,482		0		0		0		0		127,482
Agri-business and agricultural loans:
Loans secured by farmland		172,349		0		0		283		283		172,632
Loans for agricultural production		222,272		0		0		0		0		222,272
Other commercial loans		98,265		0		0		0		0		98,265
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		161,499		1,072		53		213		1,338		162,837
Open end and junior lien loans		170,372		448		0		195		643		171,015
Residential construction loans		14,983		0		0		0		0		14,983
Other consumer loans		61,119		64		0		0		64		61,183
Total	$	3,462,648	$	1,593	$	53	$	6,633	$	8,279	$	3,470,927

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 $2.7 million and $2.3 million of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of December 31, 2016 and 2015. The Company is not committed to lend additional funds to debtors whose loans have been modified in a troubled debt restructuring.

(dollars in thousands)	2016		2015
Accruing troubled debt restructured loans	$	10,351	$	6,260
Nonaccrual troubled debt restructured loans		5,633		10,914
Total troubled debt restructured loans	$	15,984	$	17,174

During the year ending December 31, 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 at least one year; or renewal terms offered to borrowers in financial distress where no additional credit enhancements were obtained at the time of renewal.

One new commercial and industrial non-working capital loan to assist with cash flow was offered to a 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 concessions granted due to an absence of readily available market terms to be used for comparison. The recorded investment was $60,000.

Additional concessions were granted to borrowers during 2016 with previously identified troubled debt restructured loans. Seven loans were for commercial real estate building with a recorded investment of $3.0 million. Another was to a borrower engaged in land development, where the aggregate recorded investment totaled $126,000. One loan was secured by farmland with a recorded investment of $283,000. Three loans were for commercial and industrial non-working capital with a recorded investment of $491,000. Also, an additional concession was granted to a borrower for a commercial and industrial working capital loan with a recorded investment of $475,000. 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 year ending December 31, 2016 not already noted above:

							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		6	$	1,841	$	1,902		5		9-356
Commercial real estate and multi-
family residential loans:
Owner occupied loans		3		718		717		3		13-24
Total		9	$	2,559	$	2,619		8		9-356

For the period ending December 31, 2016, the commercial and industrial troubled debt restructurings described above decreased the allowance for loan losses by $99,000 and the commercial real estate and multi-family residential loan troubled debt restructurings increased the allowance for loan losses by $108,000.

Charge-offs of $66,000 resulted from the commercial real estate and multi-family residential loan troubled debt restructurings described above during the period ending December 31, 2016.

During the year ending December 31, 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 at least one year; or renewal terms offered to borrowers in financial distress where no additional credit enhancements were obtained at the time of renewal.

Renewal terms were offered to three 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. Two were to commercial and industrial working capital loans with recorded investments of $379,000 and $185,000 and the other was to a borrower 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.

Additional concessions were granted to borrowers during 2015 with previously identified troubled debt restructured loans. One loan was 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 $131,000. Another was to a borrower engaged in land development, where the aggregate recorded investment totaled $238,000. Also, an additional concession was granted to a borrower for a commercial and industrial working capital loan with a recorded investment of $2.5 million. 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 year ending December 31, 2015 not already noted above:

							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
Consumer 1-4 family loans:
Closed end first mortgage loans		1		65		65		1		208
Total		6	$	2,267	$	2,267		3		6-208

For the period ending December 31, 2015, the commercial and industrial troubled debt restructurings described above increased the allowance for loan losses by $74,000, the commercial real estate and multi-family residential loan troubled debt restructurings decreased the allowance for loan losses by $18,000 and the consumer 1-4 family loan troubled debt restructuring described above increased the allowance by $9,000.

No charge-offs resulted from any troubled debt restructurings described above during the period ending December 31, 2015.

During the year ending December 31, 2014 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 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 borrower engaged in retail sales, where the collateral and cash flow did not support the loan with a recorded investment of $159,000.

Additional concessions were granted to borrowers with previously identified troubled debt restructured loans during 2014. One loan with a balance of $173,000 was rewritten under terms that are not readily available in the marketplace. Terms in the current loan agreement include an amortization period that exceeds those of similar type loans for a borrower enduring financial hardship. This concession was granted without additional compensation. Another concession included further forgiveness of principal if the terms of the restructured loan are met during the life of the loan. This borrower had a recorded investment of $2.7 million at the time of the modification. These concessions are not included in table below.

Renegotiated interest rates include loans with a reduction in rate for the remaining life of the loan. There were modifications to borrowers at rates that were not readily available in the marketplace that were considered concessions.

The following table presents loans by class modified as new troubled debt restructurings that occurred during the year ending December 31, 2014:

	All Modifications						Interest Rate Reductions						Modified Repayment Terms
			Pre-Modification		Post-Modification										Extension
			Outstanding		Outstanding				Interest at		Interest at				Period or
	Number of		Recorded		Recorded		Number of		Pre-Modification		Post-Modification		Number of		Range
(dollars in thousands)	Loans		Investment		Investment		Loans		Rate		Rate		Loans		(in months)
Troubled Debt Restructurings
Commercial and industrial loans:
Non-working capital loans		2	$	433	$	433		0	$	0	$	0		2		12-15
Commercial real estate and multi-
family residential loans:
Owner occupied loans		3		2,639		2,710		1		89		95		2		12-24
Total		5	$	3,072	$	3,143		1	$	89	$	95		4		12-24

For period ending December 31, 2014, the commercial and industrial troubled debt restructurings described above increased the allowance for loan losses by $205,000 and the commercial real estate and multi-family residential loan troubled debt restructuring described above increased the allowance for loan losses by $171,000.

No charge-offs resulted from any troubled debt restructurings described above during the period ending December 31, 2014.

The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the period ending December 31:

	2016				2015				2014
	Number of		Recorded		Number of		Recorded		Number of		Recorded
(dollars in thousands)	Loans		Investment		Loans		Investment		Loans		Investment
Troubled Debt Restructurings that Subsequently Defaulted
Commercial and industrial loans:
Non-working capital loans		0	$	0		1	$	755		0	$	0
Total		0	$	0		1	$	755		0	$	0

A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms.

The non-working capital troubled debt restructurings that subsequently defaulted, as described above, increased the allowance for loan losses by $76,000 and did not result in any charge-offs during the period ending December 31, 2015.

During the first quarter of 2014 the Company sold, to an independent party, three loans totaling $6.7 million, representing a single commercial relationship. The three loans were accounted for as troubled debt restructurings. The Company received proceeds of $4.3 million and recognized charge-offs of $2.4 million as a result of the sale. The amount charged-off had previously been reserved for by the Company.

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 as the distinct possibility that the institution 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 December 31, 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	$	577,208	$	17,636	$	29,396	$	0	$	122	$	624,362
Non-working capital loans		583,135		32,587		24,405		0		3,969		644,096
Commercial real estate and multi-
family residential loans:
Construction and land
development loans		242,964		1,447		0		0		0		244,411
Owner occupied loans		444,143		10,285		14,959		0		0		469,387
Nonowner occupied loans		451,390		4,550		2,062		0		0		458,002
Multi-family loans		127,219		263		0		0		0		127,482
Agri-business and agricultural loans:
Loans secured by farmland		168,660		3,689		283		0		0		172,632
Loans for agricultural production		218,581		3,691		0		0		0		222,272
Other commercial loans		98,261		0		0		0		4		98,265
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		44,687		126		1,232		0		116,792		162,837
Open end and junior lien loans		7,028		0		0		0		163,987		171,015
Residential construction loans		0		0		0		0		14,983		14,983
Other consumer loans		17,717		0		55		0		43,411		61,183
Total	$	2,980,993	$	74,274	$	72,392	$	0	$	343,268	$	3,470,927

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