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, 2016 and 2015 by portfolio segment (in thousands):



	Commercial			Real Estate			Consumer			Unallocated		Total
Allowance for credit losses:
Beginning balance, January 1, 2016	$	3,562		$	5,204		$	734		$	110	$	9,610
(Reversal) Provision charged to operations	(152		)	(340		)	134			108		(250		)
Losses charged to allowance	(4		)	—			(9		)	—		(13		)
Recoveries	337			417			35			—		789
Ending balance, March 31, 2016	$	3,743		$	5,281		$	894		$	218	$	10,136

Allowance for credit losses:
Beginning balance, January 1, 2015	$	3,130		$	4,058		$	1,078		$	42	$	8,308
(Reversal) 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

The following is a summary of the Allowance by impairment methodology and portfolio segment as of March 31, 2016 and December 31, 2015 (in thousands):



	Commercial		Real Estate		Consumer		Unallocated		Total
Allowance for credit losses:
Ending balance, March 31, 2016	$	3,743	$	5,281	$	894	$	218	$	10,136
Ending balance: individually evaluated for impairment	$	565	$	124	$	106	$	—	$	795
Ending balance: collectively evaluated for impairment	$	3,178	$	5,157	$	788	$	218	$	9,341

Ending balance, December 31, 2015	$	3,562	$	5,204	$	734	$	110	$	9,610
Ending balance: individually evaluated for impairment	$	1	$	128	$	35	$	—	$	164
Ending balance: collectively evaluated for impairment	$	3,561	$	5,076	$	699	$	110	$	9,446

The following table shows the ending balances of loans as of March 31, 2016 and December 31, 2015 by portfolio segment and by impairment methodology (in thousands):



	Commercial		Real Estate		Consumer		Total
Loans:
Ending balance, March 31, 2016	$	122,732	$	427,394	$	58,165	$	608,291
Ending balance: individually evaluated for impairment	$	1,159	$	5,278	$	1,500	$	7,937
Ending balance: collectively evaluated for impairment	$	121,573	$	422,116	$	56,665	$	600,354

Loans:
Ending balance, December 31, 2015	$	132,669	$	410,226	$	54,799	$	597,694
Ending balance: individually evaluated for impairment	$	30	$	5,199	$	1,470	$	6,699
Ending balance: collectively evaluated for impairment	$	132,639	$	405,027	$	53,329	$	590,995

The following table shows the loan portfolio by class allocated by management’s internal risk ratings at March 31, 2016 (in thousands):



	Pass		Special Mention		Sub-Standard		Doubtful		Total
Commercial:
Commercial and industrial	$	82,223	$	9,609	$	7,164	$	—	$	98,996
Agricultural land and production	20,368		1,900		1,468		—		23,736
Real Estate:
Owner occupied	162,727		4,007		1,937		—		168,671
Real estate construction and other land loans	39,101		—		3,064		—		42,165
Commercial real estate	114,613		1,668		2,330		—		118,611
Agricultural real estate	61,697		3,900		21,757		—		87,354
Other real estate	10,593		—		—		—		10,593
Consumer:
Equity loans and lines of credit	39,961		—		2,142		—		42,103
Consumer and installment	16,052		—		10		—		16,062
Total	$	547,335	$	21,084	$	39,872	$	—	$	608,291

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



	Pass		Special Mention		Sub-Standard		Doubtful		Total
Commercial:
Commercial and industrial	$	77,783	$	22,607	$	1,807	$	—	$	102,197
Agricultural land and production	20,422		—		10,050		—		30,472
Real Estate:
Owner occupied	163,570		3,785		1,555		—		168,910
Real estate construction and other land loans	34,916		644		3,125		—		38,685
Commercial real estate	110,833		1,683		4,728		—		117,244
Agricultural real estate	66,347		—		8,520		—		74,867
Other real estate	10,520		—		—		—		10,520
Consumer:
Equity loans and lines of credit	40,332		—		1,964		—		42,296
Consumer and installment	12,488		—		15		—		12,503
Total	$	537,211	$	28,719	$	31,764	$	—	$	597,694

The following table shows an aging analysis of the loan portfolio by class and the time past due at March 31, 2016 (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	$	897	$	149	$	—	$	1,046	$	97,950	$	98,996	$	—	$	1,114
Agricultural land and production	48		—		—		48		23,688		23,736		—		—
Real estate:	—						—		—		—
Owner occupied	287		—		170		457		168,214		168,671		—		506
Real estate construction and other land loans	—		—		—		—		42,165		42,165		—		—
Commercial real estate	—		—		—		—		118,611		118,611		—		558
Agricultural real estate	—		—		—		—		87,354		87,354		—		—
Other real estate	—		—		—		—		10,593		10,593		—		—
Consumer:							—		—		—
Equity loans and lines of credit	280		—		167		447		41,656		42,103		—		1,490
Consumer and installment	17		—		—		17		16,045		16,062		—		11
Total	$	1,529	$	149	$	337	$	2,015	$	606,276	$	608,291	$	—	$	3,679

The following table shows an aging analysis of the loan portfolio by class and the time past due at December 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	$	—	$	—	$	—	$	—	$	102,197	$	102,197	$	—	$	29
Agricultural land and production	—		—		—		—		30,472		30,472		—		—
Real estate:	—
Owner occupied	—		—		—		—		168,910		168,910		—		347
Real estate construction and other land loans	—		—		—		—		38,685		38,685		—		—
Commercial real estate	98		—		—		98		117,146		117,244		—		567
Agricultural real estate	—		—		—		—		74,867		74,867		—		—
Other real estate	—		—		—		—		10,520		10,520		—		—
Consumer:
Equity loans and lines of credit	—		166		—		166		42,130		42,296		—		1,457
Consumer and installment	38		—		—		38		12,465		12,503		—		13
Total	$	136	$	166	$	—	$	302	$	597,392	$	597,694	$	—	$	2,413

The following table shows information related to impaired loans by class at March 31, 2016 (in thousands):



	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial:
Commercial and industrial	$	59	$	63	$	—
Real estate:
Owner occupied	331		415		—
Real estate construction and other land loans	3,064		3,064		—
Commercial real estate	1,149		1,289		—
Total real estate	4,544		4,768		—
Consumer:
Equity loans and lines of credit	1,264		1,990		—
Consumer and installment	10		13		—
Total consumer	1,274		2,003		—
Total with no related allowance recorded	5,877		6,834		—

With an allowance recorded:
Commercial:
Commercial and industrial	1,100		1,102		565
Real estate:
Owner occupied	175		210		15
Commercial real estate	559		584		109
Total real estate	734		794		124
Consumer:
Equity loans and lines of credit	226		240		106
Total with an allowance recorded	2,060		2,136		795
Total	$	7,937	$	8,970	$	795

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, 2015 (in thousands):



	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial:
Commercial and industrial	$	—	$	1	$	—
Total commercial	—		1		—
Real estate:
Owner occupied	166		245		—
Real estate construction and other land loans	3,125		3,125		—
Commercial real estate	1,162		1,302		—
Total real estate	4,453		4,672		—
Consumer:
Equity loans and lines of credit	1,291		1,991		—
Total with no related allowance recorded	5,744		6,664		—

With an allowance recorded:
Commercial:
Commercial and industrial	30		33		1
Real estate:
Owner occupied	180		212		18
Commercial real estate	566		588		110
Total real estate	746		800		128
Consumer:
Equity loans and lines of credit	166		179		33
Consumer and installment	13		15		2
Total consumer	179		194		35
Total with an allowance recorded	955		1,027		164
Total	$	6,699	$	7,691	$	164

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, 2016 and 2015.



	Three Months Ended March 31, 2016				Three Months Ended March 31, 2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial:
Commercial and industrial	$	243	$	—	$	6,191	$	—
Real estate:
Owner occupied	291		54		1,184		—
Real estate construction and other land loans	3,094		19		557		60
Commercial real estate	1,156		—		1,965		—
Agricultural real estate	—		—		360		—
Total real estate	4,541		73		4,066		60
Consumer:
Equity loans and lines of credit	1,278		—		2,315		—
Consumer and installment	3		—		—		—
Total consumer	1,281		—		2,315		—
Total with no related allowance recorded	6,065		73		12,572		60

With an allowance recorded:
Commercial:
Commercial and industrial	360		1		668		—
Real estate:
Owner occupied	178		—		198		—
Real estate construction and other land loans	—		—		3,436		—
Commercial real estate	564		—		992		19
Total real estate	742		—		4,626		19
Consumer:
Equity loans and lines of credit	196		—		605		—
Consumer and installment	8		—		19		—
Total consumer	204		—		624		—
Total with an allowance recorded	1,306		1		5,918		19
Total	$	7,371	$	74	$	18,490	$	79

Foregone interest on nonaccrual loans totaled $61,000 and $259,000 for the three month periods ended March 31, 2016 and 2015, respectively.

Troubled Debt Restructurings:

As of March 31, 2016 and December 31, 2015, the Company has a recorded investment in troubled debt restructurings of $5,565,000 and $5,623,000, respectively. The Company has allocated $3,000 and $1,000 of specific reserves to loans whose terms have been modified in troubled debt restructurings as of March 31, 2016 and December 31, 2015, respectively. The Company has committed to lend no additional amounts as of March 31, 2016 to customers with outstanding loans that are classified as troubled debt restructurings.

During the three month period ended March 31, 2016 two loans was 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, 2016 (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 and Industrial	2	$	45	$	—	$	45	$	45


(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.

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

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, 2016 or March 31, 2015.