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



	Years Ended December 31,
	2016			2015			2014
Balance, beginning of year	$	9,610		$	8,308		$	9,208
(Reversal of) Provision charged to operations	(5,850		)	600			7,985
Losses charged to allowance	(883		)	(961		)	(9,834		)
Recoveries	6,449			1,663			949
Balance, end of year	$	9,326		$	9,610		$	8,308

The following table shows the summary of activities for the allowance for credit losses as of and for the years ended December 31, 2016, 2015, and 2014 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 of ) Provision charged to operations	(6,048		)	11			203			(16		)	(5,850		)
Losses charged to allowance	(621		)	—			(262		)	—			(883		)
Recoveries	5,287			985			177			—			6,449
Ending balance, December 31, 2016	$	2,180		$	6,200		$	852		$	94		$	9,326

Allowance for credit losses:
Beginning balance, January 1, 2015	$	3,130		$	4,058		$	1,078		$	42		$	8,308
Provision charged to operations	190			1,114			(772		)	68			600
Losses charged to allowance	(802		)	—			(159		)	—			(961		)
Recoveries	1,044			32			587			—			1,663
Ending balance, December 31, 2015	$	3,562		$	5,204		$	734		$	110		$	9,610

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

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



	Commercial		Real Estate		Consumer		Unallocated		Total
Allowance for credit losses:
Ending balance, December 31, 2016	$	2,180	$	6,200	$	852	$	94	$	9,326
Ending balance: individually evaluated for impairment	$	3	$	241	$	63	$	—	$	307
Ending balance: collectively evaluated for impairment	$	2,177	$	5,959	$	789	$	94	$	9,019

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 December 31, 2016 and December 31, 2015 by portfolio segment and by impairment methodology (in thousands):



	Commercial		Real Estate		Consumer		Total
Loans:
Ending balance, December 31, 2016	$	114,161	$	550,796	$	90,404	$	755,361
Ending balance: individually evaluated for impairment	$	487	$	4,238	$	544	$	5,269
Ending balance: collectively evaluated for impairment	$	113,674	$	546,558	$	89,860	$	750,092

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 December 31, 2016 (in thousands):



	Pass		Special Mention		Substandard		Doubtful		Total
Commercial:
Commercial and industrial	$	75,212	$	907	$	12,533	$	—	$	88,652
Agricultural land and production	16,562		8,681		266		—		25,509
Real Estate:
Owner occupied	184,987		2,865		3,813		—		191,665
Real estate construction and other land loans	62,538		5,259		1,403		—		69,200
Commercial real estate	179,966		1,548		2,711		—		184,225
Agricultural real estate	49,270		10,390		27,101		—		86,761
Other real estate	18,779		166		—		—		18,945
Consumer:
Equity loans and lines of credit	62,782		95		1,617		—		64,494
Consumer and installment	25,890		—		20		—		25,910
Total	$	675,986	$	29,911	$	49,464	$	—	$	755,361

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		Substandard		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 December 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	$	—	$	—	$	—	$	—	$	88,652	$	88,652	$	—	$	447
Agricultural land and production	—		—		—		—		25,509		25,509		—		—
Real estate:	—								—		—
Owner occupied	87		—		—		87		191,578		191,665		—		107
Real estate construction and other land loans	—		—		—		—		69,200		69,200		—		—
Commercial real estate	565		—		—		565		183,660		184,225		—		1,082
Agricultural real estate	—		—		—		—		86,761		86,761		—		—
Other real estate	—		—		—		—		18,945		18,945		—		—
Consumer:									—		—
Equity loans and lines of credit	62		48		—		110		64,384		64,494		—		526
Consumer and installment	38		—		—		38		25,872		25,910		—		18
Total	$	752	$	48	$	—	$	800	$	754,561	$	755,361	$	—	$	2,180

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 December 31, 2016 (in thousands):



	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial:
Commercial and industrial	$	447	$	612	$	—
Real estate:
Owner occupied	107		111		—
Commercial real estate	827		967		—
Total real estate	934		1,078		—
Consumer:
Equity loans and lines of credit	167		234		—
Consumer and installment	6		9		—
Total consumer	173		243		—
Total with no related allowance recorded	1,554		1,933		—

With an allowance recorded:
Commercial:
Commercial and industrial	40		40		3
Real estate:
Real estate construction and other land loans	2,222		2,222		79
Commercial real estate	1,082		1,146		162
Total real estate	3,304		3,368		241
Consumer:
Equity loans and lines of credit	359		364		61
Consumer and installment	12		12		2
Total consumer	371		376		63
Total with an allowance recorded	3,715		3,784		307
Total	$	5,269	$	5,717	$	307

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	$	—
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 years ended December 31, 2016, 2015, and 2014 (in thousands):



	Year Ended December 31, 2016				Year Ended December 31, 2015				Year Ended December 31, 2014
	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	$	115	$	—	$	2,921	$	—	$	638	$	—
Agricultural land and production	42		—		—		—		—		—
Total commercial	157		—		2,921		—		638		—
Real estate:
Owner occupied	162		—		770		231		2,063		2
Real estate construction and other land loans	2,393		196		1,266		79		1,276		24
Commercial real estate	903		55		1,939		—		574		—
Agricultural real estate	173		—		211		—		28		—
Other real estate	—		—		—		—		—		—
Total real estate	3,631		251		4,186		310		3,941		26
Consumer:
Equity loans and lines of credit	598		—		1,858		—		1,826		—
Consumer and installment	41		—		—		—		8		—
Total consumer	639		—		1,858		—		1,834		—
Total with no related allowance recorded	4,427		251		8,965		310		6,413		26
	—
With an allowance recorded:	—
Commercial:											—
Commercial and industrial	441		3		243		—		423		—
Agricultural land and production	104		—		—		—		—		—
Total commercial	545		3		243		—		423		—
Real estate:			—				—				—
Owner occupied	120		—		190		—		264		—
Real estate construction and other land loans	171		—		2,297		—		3,782		267
Commercial real estate	548		—		753		—		214		55
Total real estate	839		—		3,240		—		4,260		322
Consumer:
Equity loans and lines of credit	203		—		328		—		303		—
Consumer and installment	19		—		16		—		27		—
Total consumer	222		—		344		—		330		—
Total with an allowance recorded	1,606		3		3,827		—		5,013		322
Total	$	6,033	$	254	$	12,792	$	310	$	11,426	$	348

Foregone interest on nonaccrual loans totaled $245,000, $340,000, and $716,000 for the years ended December 31, 2016, 2015, and 2014, 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, 2016 and 2015, the Company has a recorded investment in troubled debt restructurings of $3,109,000 and, $5,623,000, respectively. The Company has allocated $82,000 and $1,000 of specific reserves for those loans at December 31, 2016 and 2015, respectively. The Company has committed to lend no additional amounts as of December 31, 2016 to customers with outstanding loans that are classified as troubled debt restructurings.

For the years ended December 31, 2016 and 2015 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, 2016 (dollars 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	2	$	45	$	—	$	45	$	40


(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, 2015 (dollars 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	2	$	42	$	—	$	42	$	30


(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 were no defaults on troubled debt restructurings within 12 months following the modification during the years ended December 31, 2016 and 2015.