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ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY | 12 Months Ended
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Dec. 31, 2018
Receivables [Abstract] |
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY | 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, 2018, 2017 and 2016:
|  |  | 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, 2018 |
Beginning balance | $21,097 |  | $14,714 |  | $4,920 |  | $577 |  | $2,768 |  | $379 |  | $2,666 |  | $47,121
Provision for loan losses | 5,884 |  | 1,140 |  | (657) |  | (209) |  | (536) |  | 150 |  | 628 |  | 6,400
Loans charged-off | (5,215) |  | (491) |  | 0 |  | 0 |  | (48) |  | (357) |  | 0 |  | (6,111)
Recoveries | 752 |  | 30 |  | 42 |  | 0 |  | 108 |  | 111 |  | 0 |  | 1,043
Net loans charged-off/(recovered) | (4,463) |  | (461) |  | 42 |  | 0 |  | 60 |  | (246) |  | 0 |  | (5,068)
Ending balance | $22,518 |  | $15,393 |  | $4,305 |  | $368 |  | $2,292 |  | $283 |  | $3,294 |  | $48,453
|  |  | 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, 2017 |
Beginning balance | $20,272 |  | $13,452 |  | $3,532 |  | $461 |  | $2,827 |  | $387 |  | $2,787 |  | $43,718
Provision for loan losses | 614 |  | 997 |  | 1,365 |  | 116 |  | (105) |  | 134 |  | (121) |  | 3,000
Loans charged-off | (842) |  | (406) |  | 0 |  | 0 |  | (53) |  | (259) |  | 0 |  | (1,560)
Recoveries | 1,053 |  | 671 |  | 23 |  | 0 |  | 99 |  | 117 |  | 0 |  | 1,963
Net loans charged-off/(recovered) | 211 |  | 265 |  | 23 |  | 0 |  | 46 |  | (142) |  | 0 |  | 403
Ending balance | $21,097 |  | $14,714 |  | $4,920 |  | $577 |  | $2,768 |  | $379 |  | $2,666 |  | $47,121
|  |  | 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/(recovered) | (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
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, 2018 and 2017:
|  |  | 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, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending allowance balance attributable to loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment | $8,552 |  | $921 |  | $73 |  | $0 |  | $457 |  | $26 |  | $0 |  | $10,029
Collectively evaluated for impairment | 13,966 |  | 14,472 |  | 4,232 |  | 368 |  | 1,835 |  | 257 |  | 3,294 |  | 38,424
Total ending allowance balance | $22,518 |  | $15,393 |  | $4,305 |  | $368 |  | $2,292 |  | $283 |  | $3,294 |  | $48,453
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment | $19,734 |  | $4,266 |  | $433 |  | $0 |  | $2,240 |  | $44 |  | $0 |  | $26,717
Loans collectively evaluated for impairment | 1,385,604 |  | 1,562,899 |  | 370,174 |  | 95,520 |  | 388,053 |  | 85,778 |  | 0 |  | 3,888,028
Total ending loans balance | $1,405,338 |  | $1,567,165 |  | $370,607 |  | $95,520 |  | $390,293 |  | $85,822 |  | $0 |  | $3,914,745
|  |  | 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, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending allowance balance attributable to loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment | $2,067 |  | $795 |  | $0 |  | $0 |  | $310 |  | $44 |  | $0 |  | $3,216
Collectively evaluated for impairment | 19,030 |  | 13,919 |  | 4,920 |  | 577 |  | 2,458 |  | 335 |  | 2,666 |  | 43,905
Total ending allowance balance | $21,097 |  | $14,714 |  | $4,920 |  | $577 |  | $2,768 |  | $379 |  | $2,666 |  | $47,121
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment | $6,979 |  | $4,802 |  | $283 |  | $0 |  | $1,756 |  | $50 |  | $0 |  | $13,870
Loans collectively evaluated for impairment | 1,411,648 |  | 1,438,219 |  | 382,643 |  | 123,922 |  | 374,013 |  | 74,144 |  | 0 |  | 3,804,589
Total ending loans balance | $1,418,627 |  | $1,443,021 |  | $382,926 |  | $123,922 |  | $375,769 |  | $74,194 |  | $0 |  | $3,818,459
The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2018:
| Unpaid |  |  |  | Allowance for
| Principal |  | Recorded |  | Loan Losses
(dollars in thousands) | Balance |  | Investment |  | Allocated
With no related allowance recorded: |  |  |  |  |
Commercial and industrial loans: |  |  |  |  |
Non-working capital loans | $3,284 |  | $1,889 |  | $0
Commercial real estate and multi-family residential loans: |  |  |  |  |
Owner occupied loans | 1,773 |  | 1,527 |  | 0
Agri-business and agricultural loans: |  |  |  |  |
Loans secured by farmland | 603 |  | 283 |  | 0
Consumer 1-4 family loans: |  |  |  |  |
Closed end first mortgage loans | 583 |  | 502 |  | 0
Open end and junior lien loans | 220 |  | 220 |  | 0
With an allowance recorded: |  |  |  |  |
Commercial and industrial loans: |  |  |  |  |
Working capital lines of credit loans | 9,691 |  | 6,694 |  | 2,602
Non-working capital loans | 11,099 |  | 11,151 |  | 5,950
Commercial real estate and multi-family residential loans: |  |  |  |  |
Construction and land development loans | 291 |  | 291 |  | 142
Owner occupied loans | 2,938 |  | 2,448 |  | 779
Agri-business and agricultural loans: |  |  |  |  |
Loans secured by farmland | 150 |  | 150 |  | 73
Consumer 1-4 family mortgage loans: |  |  |  |  |
Closed end first mortgage loans | 1,517 |  | 1,518 |  | 457
Other consumer loans | 45 |  | 44 |  | 26
Total | $32,194 |  | $26,717 |  | $10,029
The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2017:
| 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 | $491 |  | $491 |  | $0
Non-working capital loans | 2,973 |  | 1,579 |  | 0
Commercial real estate and multi-family residential loans: |  |  |  |  |
Construction and land development loans | 88 |  | 88 |  | 0
Owner occupied loans | 2,558 |  | 2,310 |  | 0
Agri-business and agricultural loans: |  |  |  |  |
Loans secured by farmland | 603 |  | 283 |  | 0
Consumer 1-4 family loans: |  |  |  |  |
Closed end first mortgage loans | 636 |  | 570 |  | 0
With an allowance recorded: |  |  |  |  |
Commercial and industrial loans: |  |  |  |  |
Working capital lines of credit loans | 1,617 |  | 1,617 |  | 667
Non-working capital loans | 3,292 |  | 3,292 |  | 1,400
Commercial real estate and multi-family residential loans: |  |  |  |  |
Construction and land development loans | 827 |  | 827 |  | 350
Owner occupied loans | 1,577 |  | 1,577 |  | 445
Consumer 1-4 family mortgage loans: |  |  |  |  |
Closed end first mortgage loans | 950 |  | 950 |  | 269
Open end and junior lien loans | 235 |  | 236 |  | 41
Other consumer loans | 50 |  | 50 |  | 44
Total | $15,897 |  | $13,870 |  | $3,216
The following table presents loans individually evaluated for impairment by class of loans for the year ended December 31, 2018:
|  |  |  |  | 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 | $785 |  | $26 |  | $23
Non-working capital loans | 1,862 |  | 74 |  | 68
Commercial real estate and multi-family residential loans: |  |  |  |  |
Construction and land development loans | 58 |  | 5 |  | 4
Owner occupied loans | 2,291 |  | 36 |  | 37
Agri-business and agricultural loans: |  |  |  |  |
Loans secured by farmland | 283 |  | 0 |  | 0
Consumer 1-4 family loans: |  |  |  |  |
Closed end first mortgage loans | 521 |  | 13 |  | 12
Open end and junior lien loans | 205 |  | 0 |  | 0
With an allowance recorded: |  |  |  |  |
Commercial and industrial loans: |  |  |  |  |
Working capital lines of credit loans | 3,307 |  | 74 |  | 12
Non-working capital loans | 5,328 |  | 138 |  | 81
Commercial real estate and multi-family residential loans: |  |  |  |  |
Construction and land development loans | 453 |  | 26 |  | 29
Owner occupied loans | 1,631 |  | 9 |  | 1
Agri-business and agricultural loans: |  |  |  |  |
Loans secured by farmland | 12 |  | 1 |  | 0
Consumer 1-4 family mortgage loans: |  |  |  |  |
Closed end first mortgage loans | 1,214 |  | 37 |  | 36
Open end and junior lien loans | 38 |  | 0 |  | 0
Other consumer loans | 47 |  | 3 |  | 3
Total | $18,035 |  | $442 |  | $306
The following table presents loans individually evaluated for impairment by class of loans for the year ended December 31, 2017:
|  |  |  |  | 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 | $407 |  | $46 |  | $39
Non-working capital loans | 1,341 |  | 57 |  | 51
Commercial real estate and multi-family residential loans: |  |  |  |  |
Construction and land development loans | 110 |  | 5 |  | 5
Owner occupied loans | 2,349 |  | 17 |  | 15
Nonowner occupied loans | 3,009 |  | 294 |  | 284
Agri-business and agricultural loans: |  |  |  |  |
Loans secured by farmland | 287 |  | 0 |  | 0
Consumer 1-4 family loans: |  |  |  |  |
Closed end first mortgage loans | 293 |  | 9 |  | 8
Open end and junior lien loans | 103 |  | 0 |  | 0
With an allowance recorded: |  |  |  |  |
Commercial and industrial loans: |  |  |  |  |
Working capital lines of credit loans | 2,083 |  | 17 |  | 17
Non-working capital loans | 5,715 |  | 103 |  | 103
Commercial real estate and multi-family residential loans: |  |  |  |  |
Construction and land development loans | 69 |  | 5 |  | 0
Owner occupied loans | 1,664 |  | 3 |  | 2
Agri-business and agricultural loans: |  |  |  |  |
Loans secured by farmland | 2 |  | 0 |  | 0
Consumer 1-4 family mortgage loans: |  |  |  |  |
Closed end first mortgage loans | 1,006 |  | 25 |  | 22
Open end and junior lien loans | 80 |  | 0 |  | 0
Other consumer loans | 52 |  | 3 |  | 3
Total | $18,570 |  | $584 |  | $549
The following table presents loans individually evaluated for impairment by class of loans for the year ended 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
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, 2018 by class of loans:
|  |  |  |  | Greater than |  |  |  |  |  |
|  |  | 30-89 |  | 90 Days Past |  |  |  | Total Past |  |
| Loans Not |  | Days |  | Due and Still |  |  |  | Due and |  |
(dollars in thousands) | Past Due |  | Past Due |  | Accruing |  | Nonaccrual |  | Nonaccrual |  | Total
Commercial and industrial loans: |  |  |  |  |  |  |  |  |  |  |
Working capital lines of credit loans | $684,191 |  | $4,328 |  | $0 |  | $2,245 |  | $6,573 |  | $690,764
Non-working capital loans | 709,629 |  | 3,368 |  | 0 |  | 1,577 |  | 4,945 |  | 714,574
Commercial real estate and multi-family |  |  |  |  |  |  |  |  |  |  |
residential loans: |  |  |  |  |  |  |  |  |  |  |
Construction and land development loans | 265,544 |  | 0 |  | 0 |  | 0 |  | 0 |  | 265,544
Owner occupied loans | 583,214 |  | 486 |  | 0 |  | 2,269 |  | 2,755 |  | 585,969
Nonowner occupied loans | 520,431 |  | 57 |  | 0 |  | 0 |  | 57 |  | 520,488
Multi-family loans | 195,164 |  | 0 |  | 0 |  | 0 |  | 0 |  | 195,164
Agri-business and agricultural loans: |  |  |  |  |  |  |  |  |  |  |
Loans secured by farmland | 177,080 |  | 150 |  | 0 |  | 283 |  | 433 |  | 177,513
Loans for agricultural production | 193,094 |  | 0 |  | 0 |  | 0 |  | 0 |  | 193,094
Other commercial loans | 95,520 |  | 0 |  | 0 |  | 0 |  | 0 |  | 95,520
Consumer 1-4 family mortgage loans: |  |  |  |  |  |  |  |  |  |  |
Closed end first mortgage loans | 183,420 |  | 1,370 |  | 0 |  | 671 |  | 2,041 |  | 185,461
Open end and junior lien loans | 188,320 |  | 98 |  | 0 |  | 220 |  | 318 |  | 188,638
Residential construction loans | 16,194 |  | 0 |  | 0 |  | 0 |  | 0 |  | 16,194
Other consumer loans | 85,654 |  | 168 |  | 0 |  | 0 |  | 168 |  | 85,822
Total | $3,897,455 |  | $10,025 |  | $0 |  | $7,265 |  | $17,290 |  | $3,914,745
The following table presents the aging of the recorded investment in past due loans as of December 31, 2017 by class of loans:
|  |  |  |  | Greater than |  |  |  |  |  |
|  |  | 30-89 |  | 90 Days Past |  |  |  | Total Past |  |
| Loans Not |  | Days |  | Due and Still |  |  |  | Due and |  |
(dollars in thousands) | Past Due |  | Past Due |  | Accruing |  | Nonaccrual |  | Nonaccrual |  | Total
Commercial and industrial loans: |  |  |  |  |  |  |  |  |  |  |
Working capital lines of credit loans | $742,205 |  | $11 |  | $0 |  | $1,459 |  | $1,470 |  | $743,675
Non-working capital loans | 671,490 |  | 0 |  | 0 |  | 3,462 |  | 3,462 |  | 674,952
Commercial real estate and multi-family |  |  |  |  |  |  |  |  |  |  |
residential loans: |  |  |  |  |  |  |  |  |  |  |
Construction and land development loans | 215,713 |  | 8,000 |  | 0 |  | 0 |  | 8,000 |  | 223,713
Owner occupied loans | 534,648 |  | 0 |  | 0 |  | 3,620 |  | 3,620 |  | 538,268
Nonowner occupied loans | 507,696 |  | 0 |  | 0 |  | 0 |  | 0 |  | 507,696
Multi-family loans | 173,100 |  | 244 |  | 0 |  | 0 |  | 244 |  | 173,344
Agri-business and agricultural loans: |  |  |  |  |  |  |  |  |  |  |
Loans secured by farmland | 186,160 |  | 0 |  | 0 |  | 283 |  | 283 |  | 186,443
Loans for agricultural production | 196,483 |  | 0 |  | 0 |  | 0 |  | 0 |  | 196,483
Other commercial loans | 123,922 |  | 0 |  | 0 |  | 0 |  | 0 |  | 123,922
Consumer 1-4 family mortgage loans: |  |  |  |  |  |  |  |  |  |  |
Closed end first mortgage loans | 177,410 |  | 1,183 |  | 6 |  | 342 |  | 1,531 |  | 178,941
Open end and junior lien loans | 183,056 |  | 89 |  | 0 |  | 236 |  | 325 |  | 183,381
Residential construction loans | 13,447 |  | 0 |  | 0 |  | 0 |  | 0 |  | 13,447
Other consumer loans | 74,102 |  | 92 |  | 0 |  | 0 |  | 92 |  | 74,194
Total | $3,799,432 |  | $9,619 |  | $6 |  | $9,402 |  | $19,027 |  | $3,818,459
Troubled Debt Restructurings: Troubled debt restructured loans are included in the totals for impaired loans. The Company has allocated $3.7 million and $2.3 million of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of December 31, 2018 and 2017. The Company is not committed to lend additional funds to debtors whose loans have been modified in a troubled debt restructuring.
(dollars in thousands) | 2018 |  | 2017
Accruing troubled debt restructured loans | $8,016 |  | $2,893
Nonaccrual troubled debt restructured loans | 4,384 |  | 7,750
Total troubled debt restructured loans | $12,400 |  | $10,643
During the year ending December 31, 2018, 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. Additional concessions were granted to borrowers during 2018 with previously identified troubled debt restructured loans. There were three commercial real estate loans with recorded investments totaling $1.3 million and three commercial and industrial loans with recorded investments totaling $1.4 million where the collateral value and/or cash flows do not support those loans. The other three loans are to borrowers for investments in land for residential development which have not had sales activity to support loans with a recorded investments totaling $593,000. These troubled debt restructured loans with additional concessions increased the allowance by $189,000 and resulted in no charge-offs for year ending December 31, 2018. These concessions are not included in the table below. The following table presents loans by class modified as new troubled debt restructurings that occurred during the year ending December 31, 2018:
|  |  | 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 | 1 |  | $600 |  | $600 |  | 1 |  | 0
Non-working capital loans | 7 |  | 4,628 |  | 4,628 |  | 7 |  | 0-6
Commercial real estate and multi- |  |  |  |  |  |  |  |  |
family residential loans: |  |  |  |  |  |  |  |  |
Construction and land |  |  |  |  |  |  |  |  |
development loans | 1 |  | 824 |  | 824 |  | 1 |  | 12
Owner occupied loans | 2 |  | 933 |  | 933 |  | 2 |  | 12
Consumer 1-4 family loans: |  |  |  |  |  |  |  |  |
Closed end first mortgage loans | 1 |  | 198 |  | 197 |  | 1 |  | 239
Total | 12 |  | $7,183 |  | $7,182 |  | 12 |  | 0-239
For the period ending December 31, 2018, the commercial real estate and multi-family residential troubled debt restructurings described above decreased the allowance for loan losses by $207,000, and resulted in no charge-offs. The commercial and industrial troubled debt restructurings described above increased the allowance for loan losses by $1.6 million, and resulted in $1.6 million of charge-offs for the year ending December 31, 2018. All other troubled debt restructurings described above had no impact to the allowance and no charge-offs were recorded for the year ending December 31, 2018. During the year ending December 31, 2017, 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. Additional concessions were granted to borrowers during 2017 with previously identified troubled debt restructured loans. There were four loans 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 $1.9 million. There were five loans for commercial and industrial non-working capital loans with recorded investments 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, 2017:
|  |  | 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 | 1 |  | $1,324 |  | $1,324 |  | 1 |  | 9
Non-working capital loans | 4 |  | 1,922 |  | 1,922 |  | 4 |  | 0-6
Commercial real estate and multi- |  |  |  |  |  |  |  |  |
family residential loans: |  |  |  |  |  |  |  |  |
Owner occupied loans | 1 |  | 486 |  | 486 |  | 1 |  | 6
Consumer 1-4 family loans: |  |  |  |  |  |  |  |  |
Closed end first mortgage loans | 2 |  | 120 |  | 122 |  | 2 |  | 198-350
Total | 8 |  | $3,852 |  | $3,854 |  | 8 |  | 0-350
For the period ending December 31, 2017, the commercial and industrial troubled debt restructurings described above increased the allowance for loan losses by $513,000 and the commercial real estate and multi-family residential loan troubled debt restructurings increased the allowance for loan losses by $27,000. No charge-offs resulted from any troubled debt restructurings described above during the year ended December 31, 2017. 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 for the year ending December 31, 2016. 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 and was included in the table below reporting loans modified as new troubled debt restructurings for the year ending December 31, 2016. 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:
|  |  | 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. There were no loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the period ending December 31, 2018, 2017, and 2016. A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. 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 $250,000. 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 consumer 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, 2018, 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 | $618,612 |  | $43,240 |  | $28,563 |  | $0 |  | $349 |  | $690,764
Non-working capital loans | 664,787 |  | 15,992 |  | 27,548 |  | 0 |  | 6,247 |  | 714,574
Commercial real estate and multi- |  |  |  |  |  |  |  |  |  |  |
family residential loans: |  |  |  |  |  |  |  |  |  |  |
Construction and land |  |  |  |  |  |  |  |  |  |  |
development loans | 264,900 |  | 353 |  | 291 |  | 0 |  | 0 |  | 265,544
Owner occupied loans | 541,734 |  | 21,864 |  | 22,371 |  | 0 |  | 0 |  | 585,969
Nonowner occupied loans | 517,356 |  | 2,491 |  | 641 |  | 0 |  | 0 |  | 520,488
Multi-family loans | 194,948 |  | 216 |  | 0 |  | 0 |  | 0 |  | 195,164
Agri-business and agricultural loans: |  |  |  |  |  |  |  |  |  |  |
Loans secured by farmland | 166,623 |  | 9,107 |  | 1,783 |  | 0 |  | 0 |  | 177,513
Loans for agricultural production | 183,189 |  | 8,155 |  | 1,750 |  | 0 |  | 0 |  | 193,094
Other commercial loans | 95,516 |  | 0 |  | 0 |  | 0 |  | 4 |  | 95,520
Consumer 1-4 family mortgage loans: |  |  |  |  |  |  |  |  |  |  |
Closed end first mortgage loans | 54,879 |  | 0 |  | 2,021 |  | 0 |  | 128,561 |  | 185,461
Open end and junior lien loans | 8,810 |  | 0 |  | 220 |  | 0 |  | 179,608 |  | 188,638
Residential construction loans | 0 |  | 0 |  | 0 |  | 0 |  | 16,194 |  | 16,194
Other consumer loans | 12,700 |  | 0 |  | 44 |  | 0 |  | 73,078 |  | 85,822
Total | $3,324,054 |  | $101,418 |  | $85,232 |  | $0 |  | $404,041 |  | $3,914,745
As of December 31, 2017, 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 | $688,748 |  | $33,337 |  | $21,350 |  | $0 |  | $240 |  | $743,675
Non-working capital loans | 624,275 |  | 20,171 |  | 25,834 |  | 0 |  | 4,672 |  | 674,952
Commercial real estate and multi- |  |  |  |  |  |  |  |  |  |  |
family residential loans: |  |  |  |  |  |  |  |  |  |  |
Construction and land |  |  |  |  |  |  |  |  |  |  |
development loans | 222,445 |  | 441 |  | 827 |  | 0 |  | 0 |  | 223,713
Owner occupied loans | 496,231 |  | 19,361 |  | 22,676 |  | 0 |  | 0 |  | 538,268
Nonowner occupied loans | 505,033 |  | 1,970 |  | 693 |  | 0 |  | 0 |  | 507,696
Multi-family loans | 173,100 |  | 244 |  | 0 |  | 0 |  | 0 |  | 173,344
Agri-business and agricultural loans: |  |  |  |  |  |  |  |  |  |  |
Loans secured by farmland | 174,118 |  | 7,988 |  | 4,337 |  | 0 |  | 0 |  | 186,443
Loans for agricultural production | 185,772 |  | 9,716 |  | 995 |  | 0 |  | 0 |  | 196,483
Other commercial loans | 123,917 |  | 0 |  | 0 |  | 0 |  | 5 |  | 123,922
Consumer 1-4 family mortgage loans: |  |  |  |  |  |  |  |  |  |
Closed end first mortgage loans | 52,301 |  | 0 |  | 1,520 |  | 0 |  | 125,120 |  | 178,941
Open end and junior lien loans | 8,259 |  | 0 |  | 236 |  | 0 |  | 174,886 |  | 183,381
Residential construction loans | 0 |  | 0 |  | 0 |  | 0 |  | 13,447 |  | 13,447
Other consumer loans | 18,642 |  | 0 |  | 50 |  | 0 |  | 55,502 |  | 74,194
Total | $3,272,841 |  | $93,228 |  | $78,518 |  | $0 |  | $373,872 |  | $3,818,459

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