ce for credit losses (the “Allowance”) is a valuation allowance for probable incurred credit losses in the Company’s loan portfolio. The Allowance is established through a provision for credit losses which is charged to expense. Additions to the Allowance are expected to maintain the adequacy of the total Allowance after credit losses and loan growth. Credit exposures determined to be uncollectible are charged against the Allowance. Cash received on previously charged off credits is recorded as a recovery to the Allowance. The overall Allowance consists of two primary components, specific reserves related to impaired loans and general reserves for probable incurred losses related to loans that are not impaired.

For all portfolio segments, the determination of the general reserve for loans that are not impaired is based on estimates made by management, including but not limited to, consideration of historical losses by portfolio segment (and in certain cases peer data) over the most recent 20 quarters, and qualitative factors including economic trends in the Company’s service areas, industry experience and trends, geographic concentrations, estimated collateral values, the Company’s underwriting policies, the character of the loan portfolio, and probable losses inherent in the portfolio taken as a whole.

The following table shows the summary of activities for the Allowance as of and for the three months ended March 31, 2015 and 2014 by portfolio segment (in thousands):



	Commercial			Real Estate			Consumer			Unallocated			Total
Allowance for credit losses:
Beginning balance, January 1, 2015	$	3,130		$	4,058		$	1,078		$	42		$	8,308
Provision charged to operations	308			391			(705		)	6			—
Losses charged to allowance	(410		)	—			(31		)	—			(441		)
Recoveries	101			8			423			—			532
Ending balance, March 31, 2015	$	3,129		$	4,457		$	765		$	48		$	8,399

Allowance for credit losses:
Beginning balance, January 1, 2014	$	2,444		$	5,174		$	1,168		$	422		$	9,208
Provision charged to operations	449			(510		)	237			(176		)	—
Losses charged to allowance	(929		)	—			(85		)	—			(1,014		)
Recoveries	48			8			71			—			127
Ending balance, March 31, 2014	$	2,012		$	4,672		$	1,391		$	246		$	8,321

The following is a summary of the Allowance by impairment methodology and portfolio segment as of March 31, 2015 and December 31, 2014 (in thousands):



	Commercial		Real Estate		Consumer		Unallocated		Total
Allowance for credit losses:
Ending balance, March 31, 2015	$	3,129	$	4,457	765		$	48	$	8,399
Ending balance: individually evaluated for impairment	$	37	$	188	59		$	—	$	284
Ending balance: collectively evaluated for impairment	$	3,092	$	4,269	706		$	48	$	8,115

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

The following table shows the ending balances of loans as of March 31, 2015 and December 31, 2014 by portfolio segment and by impairment methodology (in thousands):



	Commercial		Real Estate		Consumer		Total
Loans:
Ending balance, March 31, 2015	$	124,339	$	398,998	$	53,393	$	576,730
Ending balance: individually evaluated for impairment	$	6,422	$	8,930	$	2,826	$	18,178
Ending balance: collectively evaluated for impairment	$	117,917	$	390,068	$	50,567	$	558,552

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

The following table shows the loan portfolio by class allocated by management’s internal risk ratings at March 31, 2015 (in thousands):



	Pass		Special Mention		Sub-Standard		Doubtful		Total
Commercial:
Commercial and industrial	$	70,498	$	12,790	$	6,948	$	—	$	90,236
Agricultural land and production	34,103		—		—		—		34,103
Real Estate:
Owner occupied	167,311		5,444		3,001		—		175,756
Real estate construction and other land loans	33,849		2,557		3,874		—		40,280
Commercial real estate	97,933		3,773		6,380		—		108,086
Agricultural real estate	64,318		2,524		360		—		67,202
Other real estate	7,674		—		—		—		7,674
Consumer:
Equity loans and lines of credit	40,749		468		4,527		—		45,744
Consumer and installment	7,630		—		19		—		7,649
Total	$	524,065	$	27,556	$	25,109	$	—	$	576,730

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



	Pass		Special Mention		Sub-Standard		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 an aging analysis of the loan portfolio by class and the time past due at March 31, 2015 (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	$	886	$	30	$	62	$	978	$	89,258	$	90,236	$	—	$	6,422
Agricultural land and production	—		—		—		—		34,103		34,103		—		—
Real estate:	—						—		—		—
Owner occupied	—		—		247		247		175,509		175,756		—		1,375
Real estate construction and other land loans	—		—		589		589		39,691		40,280		—		589
Commercial real estate	—		—		—		—		108,086		108,086		—		2,124
Agricultural real estate	—		—		—		—		67,202		67,202		—		360
Other real estate	—		—		—		—		7,674		7,674		—		—
Consumer:							—		—		—
Equity loans and lines of credit	1,437		—		—		1,437		44,307		45,744		—		2,808
Consumer and installment	15		—		—		15		7,634		7,649		—		18
Total	$	2,338	$	30	$	898	$	3,266	$	573,464	$	576,730	$	—	$	13,696

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 information related to impaired loans by class at March 31, 2015 (in thousands):



	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial:
Commercial and industrial	$	6,282	$	6,696	$	—
Real estate:
Owner occupied	1,179		1,253		—
Real estate construction and other land loans	589		842		—
Commercial real estate	2,604		2,783		—
Agricultural real estate	360		360		—
Total real estate	4,732		5,238		—
Consumer:
Equity loans and lines of credit	2,591		3,274		—
Total with no related allowance recorded	13,605		15,208		—

With an allowance recorded:
Commercial:
Commercial and industrial	140		141		37
Real estate:
Owner occupied	196		219		28
Real estate construction and other land loans	3,286		3,286		31
Commercial real estate	716		720		129
Total real estate	4,198		4,225		188
Consumer:
Equity loans and lines of credit	217		237		57
Consumer and installment	18		20		2
Total consumer	235		257		59
Total with an allowance recorded	4,573		4,623		284
Total	$	18,178	$	19,831	$	284

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, 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		—
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
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
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 presents by class, information related to the average recorded investment and interest income recognized on impaired loans for the three months ended March 31, 2015 and 2014.



	Three Months Ended March 31, 2015				Three Months Ended March 31, 2014
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial:
Commercial and industrial	$	6,191	$	—	$	329	$	—
Real estate:
Owner occupied	1,184		—		3,195		20
Real estate construction and other land loans	557		60		1,427		—
Commercial real estate	1,965		—		496		—
Agricultural real estate	360		—		—		—
Total real estate	4,066		60		5,118		20
Consumer:
Equity loans and lines of credit	2,315		—		1,943		—
Consumer and installment	—		—		4		—
Total consumer	2,315		—		1,947		—
Total with no related allowance recorded	12,572		60		7,394		20

With an allowance recorded:
Commercial:
Commercial and industrial	668		—		872		—
Real estate:
Owner occupied	198		—		96		—
Real estate construction and other land loans	3,436		—		3,988		70
Commercial real estate	992		19		—		—
Total real estate	4,626		19		4,084		70
Consumer:
Equity loans and lines of credit	605		—		236		—
Consumer and installment	19		—		—		—
Total consumer	624		—		236		—
Total with an allowance recorded	5,918		19		5,192		70
Total	$	18,490	$	79	$	12,586	$	90

Foregone interest on nonaccrual loans totaled $259,000 and $164,000 for the three month periods ended March 31, 2015 and 2014, respectively.

Troubled Debt Restructurings:

As of March 31, 2015 and December 31, 2014, the Company has a recorded investment in troubled debt restructurings of $6,361,000 and $6,600,000, respectively. The Company has allocated $32,000 and $132,000 of specific reserves to loans whose terms have been modified in troubled debt restructurings as of March 31, 2015 and December 31, 2014, respectively. The Company has committed to lend no additional amounts as of March 31, 2015 to customers with outstanding loans that are classified as troubled debt restructurings.

During the three month period ended March 31, 2015 two loans were modified as a troubled debt restructuring. The modification of the terms of such loan 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 period, there were no troubled debt restructurings in which the amount of principal or accrued interest owed from the borrower was forgiven.

The following table presents loans by class modified as troubled debt restructurings that occurred during the quarter ended March 31, 2015 (in thousands):



Troubled Debt Restructurings:	Number of Loans	Pre-Modification Outstanding Recorded Investment (1)		Principal Modification (2)		Post Modification Outstanding Recorded Investment (3)		Outstanding Recorded Investment
Commercial:
Commercial and Industrial	2	$	42	$	—	$	42	$	42


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


(2)	Principal Modification includes principal forgiveness at the time of modification, contingent principal forgiveness granted over the life of the loan based on borrower performance, and principal that has been legally separated and deferred to the end of the loan, with zero percent contractual interest rate.


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

During the three month period ended March 31, 2014 no loans were modified as troubled debt restructurings. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. There were no defaults on troubled debt restructurings, within twelve months following the modification, during the quarter ended March 31, 2015 or March 31, 2014.