Changes in the allowance for credit losses were as follows (in thousands):



	Years Ended December 31,
	2014			2013			2012
Balance, beginning of year	$	9,208		$	10,133		$	11,396
Provision charged to operations	7,985			—			700
Losses charged to allowance	(9,834		)	(1,446		)	(2,850		)
Recoveries	949			521			887
Balance, end of year	$	8,308		$	9,208		$	10,133

The following table shows the summary of activities for the allowance for credit losses as of and for the years ended December 31, 2014 and 2013 by portfolio segment (in thousands):



	Commercial			Real Estate			Consumer			Unallocated			Total
Allowance for credit losses:
Beginning balance, January 1, 2014	$	2,444		$	5,174		$	1,168		$	422		$	9,208
Provision charged to operations	9,660			(1,447		)	152			(380		)	7,985
Losses charged to allowance	(9,145		)	(183		)	(506		)	—			(9,834		)
Recoveries	171			514			264			—			949
Ending balance, December 31, 2014	$	3,130		$	4,058		$	1,078		$	42		$	8,308

Allowance for credit losses:
Beginning balance, January 1, 2013	$	2,676		$	5,877		$	1,541		$	39		$	10,133
Provision charged to operations	166			(434		)	(115		)	383			—
Losses charged to allowance	(713		)	(285		)	(448		)	—			(1,446		)
Recoveries	315			16			190			—			521
Ending balance, December 31, 2013	$	2,444		$	5,174		$	1,168		$	422		$	9,208

The following is a summary of the allowance for credit losses by impairment methodology and portfolio segment as of December 31, 2014 and December 31, 2013 (in thousands):



	Commercial		Real Estate		Consumer		Unallocated		Total
Allowance for credit losses:
Ending balance, December 31, 2014	$	3,130	$	4,058	$	1,078	$	42	$	8,308
Ending balance: individually evaluated for impairment	$	230	$	162	$	220	$	—	$	612
Ending balance: collectively evaluated for impairment	$	2,900	$	3,896	$	858	$	42	$	7,696

Ending balance, December 31, 2013	$	2,444	$	5,174	$	1,168	$	422	$	9,208
Ending balance: individually evaluated for impairment	$	469	$	465	$	73	$	—	$	1,007
Ending balance: collectively evaluated for impairment	$	1,975	$	4,709	$	1,095	$	422	$	8,201

The table above excludes the recorded investment in loans acquired with deteriorated quality of $2,465,000 with no allowance at December 31, 2013. There are no such loans at December 31, 2014.

The following table shows the ending balances of loans as of December 31, 2014 and December 31, 2013 by portfolio segment and by impairment methodology (in thousands):



	Commercial		Real Estate		Consumer		Total
Loans:
Ending balance, December 31, 2014	$	128,147	$	386,627	$	57,668	$	572,442
Ending balance: individually evaluated for impairment	$	7,268	$	8,512	$	3,046	$	18,826
Ending balance: collectively evaluated for impairment	$	120,879	$	378,115	$	54,622	$	553,616

Loans:
Ending balance, December 31, 2013	$	118,731	$	333,939	$	59,846	$	512,516
Ending balance: individually evaluated for impairment	$	1,527	$	9,540	$	2,290	$	13,357
Ending balance: collectively evaluated for impairment	$	117,204	$	324,399	$	57,556	$	499,159

The following table shows the loan portfolio by class allocated by management’s internal risk ratings at December 31, 2014 (in thousands):



	Pass		Special Mention		Substandard		Doubtful		Total
Commercial:
Commercial and industrial	$	78,333	$	2,345	$	8,329	$	—	$	89,007
Agricultural land and production	39,140		—		—		—		39,140
Real Estate:
Owner occupied	170,568		2,778		3,458		—		176,804
Real estate construction and other land loans	32,114		1,130		5,679		—		38,923
Commercial real estate	95,831		215		10,742		—		106,788
Agricultural real estate	55,018		2,123		360		—		57,501
Other real estate	6,611		—		—		—		6,611
Consumer:
Equity loans and lines of credit	42,334		72		5,169		—		47,575
Consumer and installment	10,072		—		21		—		10,093
Total	$	530,021	$	8,663	$	33,758	$	—	$	572,442

The following table shows the loan portfolio by class allocated by management’s internally assigned risk grade ratings at December 31, 2013 (in thousands):



	Pass		Special Mention		Substandard		Doubtful		Total
Commercial:
Commercial and industrial	$	81,732	$	2,244	$	3,106	$	—	$	87,082
Agricultural land and production	31,649		—		—		—		31,649
Real Estate:
Owner occupied	144,082		5,229		7,470		—		156,781
Real estate construction and other land loans	31,776		3,959		6,594		—		42,329
Commercial real estate	77,589		3,718		4,810		—		86,117
Agricultural real estate	42,151		2,013		—		—		44,164
Other real estate	4,548		—		—		—		4,548
Consumer:
Equity loans and lines of credit	41,999		2,400		4,195		—		48,594
Consumer and installment	10,946		46		260		—		11,252
Total	$	466,472	$	19,609	$	26,435	$	—	$	512,516

The following table shows an aging analysis of the loan portfolio by class and the time past due at December 31, 2014 (in thousands):



	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days Accruing		Non-accrual
Commercial:
Commercial and industrial	$	172	$	88	$	—	$	260	$	88,747	$	89,007	$	—	$	7,265
Agricultural land and production	—		—		—		—		39,140		39,140		—		—
Real estate:	—								—		—
Owner occupied	164		—		249		413		176,391		176,804		—		1,363
Real estate construction and other land loans	547		—		—		547		38,376		38,923		—		547
Commercial real estate	—		—		—		—		106,788		106,788		—		1,468
Agricultural real estate	—		—		—		—		57,501		57,501		—		360
Other real estate	—		—		—		—		6,611		6,611		—		—
Consumer:									—		—
Equity loans and lines of credit	—		—		227		227		47,348		47,575		—		3,030
Consumer and installment	30		—		—		30		10,063		10,093		—		19
Total	$	913	$	88	$	476	$	1,477	$	570,965	$	572,442	$	—	$	14,052

The following table shows an aging analysis of the loan portfolio by class and the time past due at December 31, 2013 (in thousands):



	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days Accruing		Non- accrual
Commercial:
Commercial and industrial	$	274	$	236	$	—	$	510	$	86,572	$	87,082	$	—	$	1,527
Agricultural land and production	—		—		—		—		31,649		31,649		—		—
Real estate:	—										—
Owner occupied	1,272		134		418		1,824		154,957		156,781		—		2,161
Real estate construction and other land loans	—		—		—		—		42,329		42,329		—		1,450
Commercial real estate	—		—		—		—		86,117		86,117		—		158
Agricultural real estate	—		—		—		—		44,164		44,164		—		—
Other real estate	—		—		—		—		4,548		4,548		—		—
Consumer:											—
Equity loans and lines of credit	10		147		252		409		48,185		48,594		—		2,286
Consumer and installment	86		—		—		86		11,166		11,252		—		4
Total	$	1,642	$	517	$	670	$	2,829	$	509,687	$	512,516	$	—	$	7,586

The following table shows information related to impaired loans by class at December 31, 2014 (in thousands):



	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial:
Commercial and industrial	$	6,440	$	9,991	$	—
Agricultural land and production	—		1,722		—
Total commercial	6,440		11,713		—
Real estate:
Owner occupied	1,188		1,255		—
Real estate construction and other land loans	547		799		—
Commercial real estate	1,794		1,794		—
Agricultural real estate	360		360		—
Other real estate	—		—		—
Total real estate	3,889		4,208		—
Consumer:
Equity loans and lines of credit	2,019		2,707		—
Consumer and installment	—		—		—
Total consumer	2,019		2,707		—
Total with no related allowance recorded	12,348		18,628		—

With an allowance recorded:
Commercial:
Commercial and industrial	828		835		230
Agricultural land and production	—		—		—
Total commercial	828		835		230
Real estate:
Owner occupied	199		219		30
Real estate construction and other land loans	3,542		3,542		72
Commercial real estate	882		1,022		60
Agricultural real estate	—		—		—
Other real estate	—		—		—
Total real estate	4,623		4,783		162
Consumer:
Equity loans and lines of credit	1,008		1,026		217
Consumer and installment	19		21		3
Total consumer	1,027		1,047		220
Total with an allowance recorded	6,478		6,665		612
Total	$	18,826	$	25,293	$	612

The recorded investment in loans excludes accrued interest receivable and net loan origination fees, due to immateriality.

The following table shows information related to impaired loans by class at December 31, 2013 (in thousands):



	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial:
Commercial and industrial	$	350	$	385	$	—
Agricultural land and production	—		—		—
Total commercial	350		385		—
Real estate:
Owner occupied	3,160		4,159		—
Real estate construction and other land loans	1,449		2,136		—
Commercial real estate	502		891		—
Agricultural real estate	—		—		—
Other real estate	—		—		—
Total real estate	5,111		7,186		—
Consumer:
Equity loans and lines of credit	2,029		2,826		—
Consumer and installment	4		5		—
Total consumer	2,033		2,831		—
Total with no related allowance recorded	7,494		10,402		—

With an allowance recorded:
Commercial:
Commercial and industrial	1,177		1,222		469
Agricultural land and production	—		—		—
Total commercial	1,177		1,222		469
Real estate:
Owner occupied	385		425		3
Real estate construction and other land loans	4,044		4,044		462
Commercial real estate	—		—		—
Agricultural real estate	—		—		—
Other real estate	—		—		—
Total real estate	4,429		4,469		465
Consumer:
Equity loans and lines of credit	257		264		73
Consumer and installment	—		—		—
Total consumer	257		264		73
Total with an allowance recorded	5,863		5,955		1,007
Total	$	13,357	$	16,357	$	1,007

The recorded investment in loans excludes accrued interest receivable and net loan origination fees, due to immateriality.

The following presents by class, information related to the average recorded investment and interest income recognized on impaired loans for the years ended December 31, 2014, 2013, and 2012 (in thousands):



	Year Ended December 31, 2014				Year Ended December 31, 2013				Year Ended December 31, 2012
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial:
Commercial and industrial	$	638	$	—	$	329	$	—	$	952	$	—
Total commercial	638		—		329		—		952		—
Real estate:
Owner occupied	2,063		2		2,321		—		1,053		—
Real estate construction and other land loans	1,276		24		2,342		—		4,933		—
Commercial real estate	574		—		279		—		301		—
Agricultural real estate	28		—		—		—		—		—
Total real estate	3,941		26		4,942		—		6,287		—
Consumer:
Equity loans and lines of credit	1,826		—		1,998		—		1,561		—
Consumer and installment	8		—		9		—		6		—
Total consumer	1,834		—		2,007		—		1,567		—
Total with no related allowance recorded	6,413		26		7,278		—		8,806		—
	—
With an allowance recorded:	—
Commercial:	1,624,000		178,000		721,000		—		721,000		—
Commercial and industrial	423		—		1,309		111		1,581		226
Total commercial	423		—		1,309		111		1,581		226
Real estate:			—				—				—
Owner occupied	264		—		997		86		633		—
Real estate construction and other land loans	3,782		267		4,295		329		6,490		375
Commercial real estate	214		55		—		47		145		—
Total real estate	4,260		322		5,292		462		7,268		375
Consumer:
Equity loans and lines of credit	303		—		489		—		600		—
Consumer and installment	27		—		—		—		37		—
Total consumer	330		—		489		—		637		—
Total with an allowance recorded	5,013		322		7,090		573		9,486		601
Total	$	11,426	$	348	$	14,368	$	573	$	18,292	$	601

Foregone interest on nonaccrual loans totaled $716,000, $661,000, and $693,000 for the years ended December 31, 2014, 2013, and 2012, respectively. Interest income recognized on cash basis during the years presented above was not considered significant for financial reporting purposes.

Troubled Debt Restructurings:

As of December 31, 2014 and 2013, the Company has a recorded investment in troubled debt restructurings of $6,600,000 and, $10,366,000, respectively. The Company has allocated $132,000 and $946,000 of specific reserves for those loans at December 31, 2014 and 2013, respectively. The Company has committed to lend no additional amounts as of December 31, 2014 to customers with outstanding loans that are classified as troubled debt restructurings.

For the years ended December 31, 2014 and 2013 the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan or an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk. During the same periods, there were no troubled debt restructurings in which the amount of principal or accrued interest owed from the borrower were forgiven.

The following table presents loans by class modified as troubled debt restructurings that occurred during the year ended December 31, 2014 (in thousands):



Troubled Debt Restructurings:	Number of Loans	Pre-Modification Outstanding Recorded Investment (1)		Principal Modification		Post Modification Outstanding Recorded Investment (2)		Outstanding Recorded Investment
Commercial:
Commercial and industrial	1	$	25	$	—	$	25	$	25
Consumer:
Equity loans and line of credit	1	7		—		7		4
Total	2	$	32	$	—	$	32	$	29


(1)	Amounts represent the recorded investment in loans before recognizing effects of the TDR, if any.


(2)	Balance outstanding after principal modification, if any borrower reduction to recorded investment.

The following table presents loans by class modified as troubled debt restructurings that occurred during the year ended December 31, 2013 (in thousands):



Troubled Debt Restructurings:	Number of Loans	Pre-Modification Outstanding Recorded Investment (1)		Principal Modification		Post Modification Outstanding Recorded Investment (2)		Outstanding Recorded Investment
Real Estate:
Commercial real estate	1	$	620	$	—	$	620	$	344


(1)	Amounts represent the recorded investment in loans before recognizing effects of the TDR, if any.


(2)	Balance outstanding after principal modification, if any borrower reduction to recorded investment.

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. There was no defaults on troubled debt restructurings within twelve months following the modification during the year ended December 31, 2014. There was no default on troubled debt restructurings within twelve months following the modification during the year ended December 31, 2013.