ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY

Loans individually evaluated for impairment

The following table presents loans individually evaluated for impairment by class of loans as of June 30, 2020:


	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	$	2,053	$	173	$	0
Non-working capital loans		3,108		1,011		0
Commercial real estate and multi-family residential loans:
Owner occupied loans		2,086		2,086		0
Agri-business and agricultural loans:
Loans secured by farmland		603		283		0
Consumer 1‑4 family loans:
Closed end first mortgage loans		385		304		0
Open end and junior lien loans		49		49		0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		1,908		1,907		467
Non-working capital loans		12,444		11,779		5,917
Commercial real estate and multi-family residential loans:
Owner occupied loans		4,006		4,007		1,318
Agri-business and agricultural loans:
Loans secured by farmland		147		147		64
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		1,545		1,548		351
Open end and junior lien loans		663		662		50
Residential construction loans		51		52		10
Total	$	29,048	$	24,008	$	8,177

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2019:


	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	$	22	$	22	$	0
Non-working capital loans		2,130		735		0
Commercial real estate and multi-family residential loans:
Owner occupied loans		3,189		3,010		0
Agri-business and agricultural loans:
Loans secured by farmland		603		283		0
Loans for ag production		15		15		0
Consumer 1‑4 family loans:
Closed end first mortgage loans		411		330		0
Open end and junior lien loans		121		121		0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		6,214		6,214		3,089
Non-working capital loans		13,230		12,609		6,235
Commercial real estate and multi-family residential loans:
Owner occupied loans		1,988		1,988		538
Agri-business and agricultural loans:
Loans secured by farmland		147		147		90
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		1,643		1,646		363
Open end and junior lien loans		641		640		53
Residential construction loans		51		52		10
Other consumer loans		17		17		6
Total	$	30,422	$	27,829	$	10,384

The following table presents loans individually evaluated for impairment by class of loans as of and for the three-month period ended June 30, 2020:


					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	$	774	$	0	$	0
Non-working capital loans		744		10		10
Commercial real estate and multi-family residential loans:
Owner occupied loans		2,104		4		4
Agri-business and agricultural loans:
Loans secured by farmland		283		0		0
Consumer 1‑4 family loans:
Closed end first mortgage loans		313		1		0
Open end and junior lien loans		49		0		0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		2,171		0		0
Non-working capital loans		11,600		63		63
Commercial real estate and multi-family residential loans:
Owner occupied loans		3,108		0		0
Agri-business and agricultural loans:
Loans secured by farmland		147		0		0
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		1,606		0		0
Open end and junior lien loans		639		0		0
Residential construction loans		52		0		0
Total	$	23,590	$	78	$	77

The following table presents loans individually evaluated for impairment by class of loans as of and for the three-month period ended June 30, 2019:


					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	$	287	$	0	$	1
Non-working capital loans		933		9		4
Commercial real estate and multi-family residential loans:
Owner occupied loans		1,450		10		10
Agri-business and agricultural loans:
Loans secured by farmland		283		0		0
Consumer 1‑4 family loans:
Closed end first mortgage loans		164		1		1
Open end and junior lien loans		93		0		0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		6,326		75		26
Non-working capital loans		11,105		127		94
Commercial real estate and multi-family residential loans:
Owner occupied loans		1,763		16		11
Agri-business and agricultural loans:
Loans secured by farmland		147		1		0
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		1,680		13		13
Other consumer loans		28		1		0
Total	$	24,259	$	253	$	160

Troubled Debt Restructuring


	June 30,		December 31,
(dollars in thousands)	2020		2019
Accruing troubled debt restructured loans	$	5,772	$	5,909
Nonaccrual troubled debt restructured loans		7,582		3,188
Total troubled debt restructured loans	$	13,354	$	9,097

Credit Quality Indicators

Special

Not

(dollars in thousands)

Pass

Mention

Substandard

Doubtful

Rated

Total

Commercial and industrial loans:

Working capital lines of credit loans

$

517,324

$

31,787

$

19,254

$

0

$

324

$

568,689

Non-working capital loans

1,176,307

22,205

21,258

0

5,340

1,225,110

Commercial real estate and multi-family residential loans:

Construction and land development loans

359,082

0

359,082

Owner occupied loans

537,145

26,493

12,220

0

575,858

Nonowner occupied loans

546,936

6,395

563

0

553,894

Multifamily loans

290,107

0

290,107

Agri-business and agricultural loans:

Loans secured by farmland

140,131

12,136

1,461

0

153,728

Loans for agricultural production

146,520

51,823

0

198,343

Other commercial loans

110,712

0

110,712

Consumer 1‑4 family mortgage loans:

Closed end first mortgage loans

37,353

0

1,852

0

130,326

169,531

Open end and junior lien loans

8,575

0

711

0

166,638

175,924

Residential construction loans

0

52

0

11,071

11,123

Other consumer loans

28,047

0

70,384

98,431

Total

$

3,898,239

$

150,839

$

57,371

$

0

$

384,083

$

4,490,532


			Special						Not
(dollars in thousands)	Pass		Mention		Substandard		Doubtful		Rated		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	631,728	$	40,551	$	37,278	$	0	$	426	$	709,983
Non-working capital loans		673,370		18,782		19,381		0		5,310		716,843
Commercial real estate and multi-family residential loans:
Construction and land development loans		286,534		0		0		0		0		286,534
Owner occupied loans		535,496		14,804		23,059		0		0		573,359
Nonowner occupied loans		569,315		781		591		0		0		570,687
Multifamily loans		240,260		0		0		0		0		240,260
Agri-business and agricultural loans:
Loans secured by farmland		165,005		7,952		1,432		0		0		174,389
Loans for agricultural production		191,489		13,738		15		0		0		205,242
Other commercial loans		112,166		0		0		0		0		112,166
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		47,405		0		1,976		0		127,492		176,873
Open end and junior lien loans		10,845		0		762		0		176,597		188,204
Residential construction loans		0		0		51		0		12,871		12,922
Other consumer loans		27,250		0		17		0		71,099		98,366
Total	$	3,490,863	$	96,608	$	84,562	$	0	$	393,795	$	4,065,828