(1)

Construction and land development includes loans for both commercial construction and development, as well as loans for 1-4 family construction and lot loans.

(2)

Consumer owner occupied includes loans on both 1-4 family owner occupied property, as well as 1-4 family investment rental property.

In accordance with the adoption of ASU 2016-13, the above table reflects the loan portfolio at the amortized cost basis for the year ended December 31, 2020, to include net deferred fees of $35.6 million and unamortized discount total related to loans acquired of $97.7 million. Accrued interest receivable (AIR) of $93.9 million is accounted for separately and reported in other assets. The allowance for credit losses in the comparative periods includes the day 2 valuation allowance on the acquired credit impaired loans, which was $5.1 million at December 31, 2019.

The comparative periods in the above table reflect the loan portfolio prior to the adoption of ASU 2016-13. Prior periods were reported as shown in the below tables, with the acquired loans being net of unearned income and of related discounts, which includes the credit discount on the acquired credit impaired loans.

The following is a summary of non-acquired loans for comparative periods, prior to the adoption of ASU 2016-13:


	December 31,
(Dollars in thousands)	2019
Non-acquired loans:
Commercial non-owner occupied real estate:
Construction and land development	$	968,360
Commercial non-owner occupied		1,811,138
Total commercial non-owner occupied real estate		2,779,498
Consumer real estate:
Consumer owner occupied		2,118,839
Home equity loans		518,628
Total consumer real estate		2,637,467
Commercial owner occupied real estate		1,784,017
Commercial and industrial		1,280,859
Other income producing property		218,617
Consumer		538,481
Other loans		13,892
Total non-acquired loans		9,252,831
Less allowance for loan losses		(56,927)
Non-acquired loans, net	$	9,195,904

The following is a summary of acquired non-credit impaired loans accounted for under FASB ASC Topic 310-20, net of related discount, for comparative periods, prior to the adoption of ASU 2016-13:


	December 31,
(Dollars in thousands)	2019
Acquired non-credit impaired loans:
Commercial non-owner occupied real estate:
Construction and land development	$	33,569
Commercial non-owner occupied		447,441
Total commercial non-owner occupied real estate		481,010
Consumer real estate:
Consumer owner occupied		496,431
Home equity loans		188,732
Total consumer real estate		685,163
Commercial owner occupied real estate		307,193
Commercial and industrial		101,880
Other income producing property		95,697
Consumer		89,484
Acquired non-credit impaired loans	$	1,760,427

The unamortized discount related to the acquired non-credit impaired loans totaled $20.3 million at December 31, 2019.

In accordance with FASB ASC Topic 310-30, we aggregated acquired loans that have common risk characteristics into pools of loan categories as described in the table below. The following is a summary of acquired credit impaired loans accounted for under FASB ASC Topic 310-30 (identified as credit impaired at the time of acquisition), net of related discount, for comparative periods, prior to the adoption of ASU 2016-13:


	December 31,
(Dollars in thousands)	2019
Acquired credit impaired loans:
Commercial real estate	$	130,938
Commercial real estate—construction and development		25,032
Residential real estate		163,359
Consumer		35,488
Commercial and industrial		7,029
Acquired credit impaired loans		361,846
Less allowance for loan losses		(5,064)
Acquired credit impaired loans, net	$	356,782

The Company has purchased loans through its acquisition of CSFL, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of those loan, at acquisition, is as follows:


(Dollars in thousands)	June 7, 2020
Book value of acquired loans at acquisition	$	3,091,264
Allowance for credit losses at acquisition		(149,404)
Non-credit discount at acquisition		(14,283)
Carrying value or book value of acquired loans at acquisition	$	2,927,577

The following three tables are presented for comparative periods, prior to the adoption of ASU 2016-13, in which accounting rules were different, therefore unrelated to the current reporting period:

Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting carrying values of total acquired credit impaired loans as of December 31, 2019 are as follows:


	December 31,
(Dollars in thousands)	2019
Contractual principal and interest	$	452,818
Non-accretable difference		(13,938)
Cash flows expected to be collected		438,880
Accretable yield		(82,098)
Carrying value	$	356,782

Income on acquired credit impaired loans that are not impaired at the acquisition date is recognized in the same manner as loans impaired at the acquisition date. A portion of the fair value discount on acquired non-impaired loans has been ascribed as an accretable yield that is accreted into interest income over the estimated remaining life of the loans. The remaining nonaccretable difference represents cash flows not expected to be collected.

The following are changes in the carrying value of acquired credit impaired loans:


	Year Ended December 31,
(Dollars in thousands)	2019
Balance at beginning of period	$	485,119
Net reductions for payments, foreclosures, and accretion		(127,877)
Change in the allowance for loan losses on acquired loans		(460)
Balance at end of period, net of allowance for loan losses on acquired credit impaired loans	$	356,782

The following are changes in the carrying amount of accretable yield for acquired credit impaired loans:


	Year Ended December 31,
(Dollars in thousands)	2019		2018
Balance at beginning of period	$	116,754	$	133,096
Addition from the PSC acquisition		—		—
Park Sterling Corporation ("Park Sterling") acquisition Day 1 adjustment		—		(1,460)
Contractual interest income		(26,515)		(33,115)
Accretion on acquired credit impaired loans		(17,813)		(19,004)
Reclass of nonaccretable difference due to improvement in expected cash flows		9,826		37,501
Other changes, net		(154)		(264)
Balance at end of period	$	82,098	$	116,754

The table above reflects the changes in the carrying amount of accretable yield for the acquired credit impaired loans and shows both the contractual interest income and incremental accretion for each year. In 2019, the accretable yield balance declined by $34.7 million as total contractual interest and accretion income of $44.3 million was recognized. This was partially offset by improved expected cash flows of $9.8 million. The improved cash flows for previous years were adjusted to accurately reflect the split between income types.

As of December 31, 2019, the table above excludes $1.8 billion ($1.8 billion in contractual principal less a $20.3 million discount) in acquired loans which are accounted for under FASB ASC Topic 310-20. These loans were identified as either performing with no discount related to the credit or as a revolving lines of credit (commercial or consumer) at acquisition. As of December 31, 2018, the balance of these acquired loans totaled $2.6 billion ($2.6 billion in contractual principal less a $33.4 million remaining discount).

As part of the ongoing monitoring of the credit quality of our loan portfolio, Management tracks certain credit quality indicators, including trends related to (i) the level of classified loans, (ii) net charge-offs, (iii) non-performing loans (see details below), and (iv) the general economic conditions of the markets that we serve.

The Company utilizes a risk grading matrix to assign a risk grade to each commercial loan. Classified loans are assessed at a minimum every six months. A description of the general characteristics of the risk grades is as follows:

•Pass—These loans range from minimal credit risk to average, however, still acceptable credit risk.

•

Special mention—A special mention loan has potential weaknesses that deserve Management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution’s credit position at some future date.

•

Substandard—A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that may jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

•

Doubtful—A doubtful loan has all of the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable.

Construction and land development loans in the following table are on commercial and speculative real estate. Consumer owner occupied loans are on investment or rental 1-4 properties.

The following table presents the credit risk profile by risk grade of commercial loans by origination year:


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of December 31, 2020	2020	2019	2018	2017	2016	Prior	Revolving	Total
Construction and land development
Risk rating:
Pass	$ 457,433	$ 410,075	$ 133,719	$ 79,345	$ 41,018	$ 53,104	$ 15,502	$ 1,190,196
Special mention	20,912	5,668	707	1,757	1,815	7,293	-	38,152
Substandard	389	2,800	763	2,087	201	3,669	-	9,909
Doubtful	-	-	-	-	-	8	-	8
Total Construction and land development	$ 478,734	$ 418,543	$ 135,189	$ 83,189	$ 43,034	$ 64,074	$ 15,502	$ 1,238,265

Commercial non-owner occupied
Risk rating:
Pass	$ 799,175	$ 1,082,242	$ 844,988	$ 661,092	$ 676,895	$ 1,196,156	$ 58,021	$ 5,318,569
Special mention	42,492	76,890	111,466	44,790	38,637	131,015	-	445,290
Substandard	1,351	49,662	7,497	27,224	38,617	43,109	-	167,460
Doubtful	-	-	-	-	-	4	-	4
Total Commercial non-owner occupied	$ 843,018	$ 1,208,794	$ 963,951	$ 733,106	$ 754,149	$ 1,370,284	$ 58,021	$ 5,931,323

Commercial Owner Occupied
Risk rating:
Pass	$ 805,192	$ 957,412	$ 721,808	$ 603,785	$ 458,065	$ 1,042,755	$ 42,239	$ 4,631,256
Special mention	6,993	15,984	13,021	14,457	13,597	48,775	21	112,848
Substandard	5,729	4,185	4,690	20,122	15,093	48,127	36	97,982
Doubtful	1	-	-	-	-	5	-	6
Total commercial owner occupied	$ 817,915	$ 977,581	$ 739,519	$ 638,364	$ 486,755	$ 1,139,662	$ 42,296	$ 4,842,092

Commercial and industrial
Risk rating:
Pass	$ 2,723,320	$ 595,310	$ 450,238	$ 308,914	$ 223,532	$ 419,555	$ 247,169	$ 4,968,038
Special mention	1,566	3,273	3,031	7,243	2,496	25,727	9,368	52,704
Substandard	347	1,070	6,202	7,718	2,808	6,010	2,240	26,395
Doubtful	-	2	1	3	3	1		10
Total commercial and industrial	$ 2,725,233	$ 599,655	$ 459,472	$ 323,878	$ 228,839	$ 451,293	$ 258,777	$ 5,047,147

Other income producing property
Risk rating:
Pass	$ 95,530	$ 89,648	$ 75,301	$ 55,103	$ 66,351	$ 121,304	$ 6,487	$ 509,724
Special mention	2,613	1,417	1,702	235	879	11,202	100	18,148
Substandard	1,071	1,046	997	19	1,279	13,702	47	18,161
Doubtful	-	-	-	-	-	6	-	6
Total other income producing property	$ 99,214	$ 92,111	$ 78,000	$ 55,357	$ 68,509	$ 146,214	$ 6,634	$ 546,039

Consumer owner occupied
Risk rating:
Pass	$ 7,590	$ 3,527	$ 356	$ 339	$ 1,076	$ 1,290	$ 15,502	$ 29,680
Special mention	130	3,581	249	62	-	124	338	4,484
Substandard	113	387	142	-	5	326	-	973
Doubtful	-	-	-	-	-	-	-	-
Total Consumer owner occupied	$ 7,833	$ 7,495	$ 747	$ 401	$ 1,081	$ 1,740	$ 15,840	$ 35,137

Other loans
Risk rating:
Pass	$ 17,993	$ -	$ -	$ -	$ -	$ -	$ -	$ 17,993
Special mention	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	-	-	-	-
Doubtful	-	-	-	-	-	-	-	-
Total other loans	$ 17,993	$ -	$ -	$ -	$ -	$ -	$ -	$ 17,993

Total Commercial Loans
Risk rating:
Pass	$ 4,906,233	$ 3,138,214	$ 2,226,410	$ 1,708,578	$ 1,466,937	$ 2,834,164	$ 384,920	$ 16,665,456
Special mention	74,706	106,813	130,176	68,544	57,424	224,136	9,827	671,626
Substandard	9,000	59,150	20,291	57,170	58,003	114,943	2,323	320,880
Doubtful	1	2	1	3	3	24	-	34
Total Commercial Loans	$ 4,989,940	$ 3,304,179	$ 2,376,878	$ 1,834,295	$ 1,582,367	$ 3,173,267	$ 397,070	$ 17,657,996

For the consumer segment, delinquency of a loan is determined by past due status. Consumer loans are automatically placed on nonaccrual status once the loan is 90 days past due. Construction and land development loans are on 1-4 properties and lots. The following table presents the credit risk profile by past due status of consumer loans by origination year:


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of December 31, 2020	2020	2019	2018	2017	2016	Prior	Revolving	Total
Consumer owner occupied
Days past due:
Current	$ 810,215	$ 675,928	$ 543,711	$ 508,160	$ 392,754	$ 1,097,008	$ -	$ 4,027,776
30 days past due	4,933	7,744	2,816	2,382	3,510	10,522	-	31,907
60 days past due	-	350	1,222	621	103	3,068	-	5,364
90 days past due	-	176	264	994	875	5,549	-	7,858
Total Consumer owner occupied	$ 815,148	$ 684,198	$ 548,013	$ 512,157	$ 397,242	$ 1,116,147	$ -	$ 4,072,905

Home equity loans
Days past due:
Current	$ 7,654	$ 6,694	$ 7,670	$ 658	$ 398	$ 30,039	$ 1,276,058	$ 1,329,171
30 days past due	134	52	-	79	-	272	2,324	2,861
60 days past due	-	-	-	-	-	116	418	534
90 days past due	155	93	-	157	330	1,886	1,502	4,123
Total Home equity loans	$ 7,943	$ 6,839	$ 7,670	$ 894	$ 728	$ 32,313	$ 1,280,302	$ 1,336,689

Consumer
Days past due:
Current	$ 291,305	$ 201,330	$ 115,203	$ 62,485	$ 38,272	$ 147,101	$ 32,874	$ 888,570
30 days past due	105	473	454	224	29	1,043	23	2,351
60 days past due	68	143	93	61	37	376	47	825
90 days past due	73	195	272	185	100	1,663	100	2,588
Total consumer	$ 291,551	$ 202,141	$ 116,022	$ 62,955	$ 38,438	$ 150,183	$ 33,044	$ 894,334

Construction and land development
Days past due:
Current	$ 370,975	$ 164,260	$ 63,936	$ 18,530	$ 4,497	$ 25,399	$ -	$ 647,597
30 days past due	6,172	3,660	161	-	2,255	184	-	12,432
60 days past due	282	-	438	-	-	-	-	720
90 days past due	-	-	-	-	-	52	-	52
Total Construction and land development	$ 377,429	$ 167,920	$ 64,535	$ 18,530	$ 6,752	$ 25,635	$ -	$ 660,801

Other income producing property
Days past due:
Current	$ 1,412	$ 1,351	$ 1,310	$ 3,658	$ 2,045	$ 31,592	$ -	$ 41,368
30 days past due	-	-	-	-	-	27	-	27
60 days past due	-	-	-	-	-	13	-	13
90 days past due	-	-	-	-	-	1	-	1
Total other income producing property	$ 1,412	$ 1,351	$ 1,310	$ 3,658	$ 2,045	$ 31,633	$ -	$ 41,409

Total Consumer Loans
Days past due:
Current	$ 1,481,561	$ 1,049,563	$ 731,830	$ 593,491	$ 437,966	$ 1,331,139	$ 1,308,932	$ 6,934,482
30 days past due	11,344	11,929	3,431	2,685	5,794	12,048	2,347	49,578
60 days past due	350	493	1,753	682	140	3,573	465	7,456
90 days past due	228	464	536	1,336	1,305	9,151	1,602	14,622
Total Consumer Loans	$ 1,493,483	$ 1,062,449	$ 737,550	$ 598,194	$ 445,205	$ 1,355,911	$ 1,313,346	$ 7,006,138


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of December 31, 2020	2020	2019	2018	2017	2016	Prior	Revolving	Total
Total Loans	$ 6,483,423	$ 4,366,628	$ 3,114,428	$ 2,432,489	$ 2,027,572	$ 4,529,178	$ 1,710,416	$ 24,664,134

The following table presents the credit risk profile by risk grade of commercial loans for non-acquired loans, for comparative periods, prior to the adoption of ASU 2016-13, under the incurred loss model:



	Construction & Development		Commercial Non-owner Occupied		Commercial Owner Occupied
	December 31,		December 31,		December 31,
(Dollars in thousands)	2019		2019		2019
Pass	$	959,206	$	1,787,306	$	1,754,801
Special mention		7,095		22,410		19,742
Substandard		2,059		1,422		9,474
Doubtful		—		—		—
	$	968,360	$	1,811,138	$	1,784,017


	Commercial & Industrial		Other Income Producing Property		Commercial Total
	December 31,		December 31,		December 31,
	2019		2019		2019
Pass	$	1,256,465	$	213,291	$	5,971,069
Special mention		16,055		3,966		69,268
Substandard		8,339		1,360		22,654
Doubtful		—		—		—
	$	1,280,859	$	218,617	$	6,062,991

The following table presents the credit risk profile by risk grade of consumer loans for non-acquired loans, for comparative periods, prior to the adoption of ASU 2016-13, under the incurred loss model:


	Consumer Owner Occupied		Home Equity		Consumer
	December 31,		December 31,		December 31,
(Dollars in thousands)	2019		2019		2019
Pass	$	2,094,080	$	508,054	$	536,002
Special mention		9,585		4,490		487
Substandard		15,174		6,084		1,992
Doubtful		—		—		—
	$	2,118,839	$	518,628	$	538,481


	Other		Consumer Total
	December 31, 2019		December 31, 2019
Pass	$	13,892	$	3,152,028
Special mention		—		14,562
Substandard		—		23,250
Doubtful		—		—
	$	13,892	$	3,189,840

The following table presents the credit risk profile by risk grade of total non-acquired loans for comparative periods, prior to the adoption of ASU 2016-13, under the incurred loss model:


	Total Non-acquired Loans
	December 31,
(Dollars in thousands)	2019
Pass	$	9,123,097
Special mention		83,830
Substandard		45,904
Doubtful		—
	$	9,252,831

The following table presents the credit risk profile by risk grade of commercial loans for acquired non-credit impaired loans for comparative periods, prior to the adoption of ASU 2016-13, under the incurred loss model:



		Construction & Development		Commercial Non-owner Occupied		Commercial Owner Occupied
		December 31,		December 31,		December 31,
(Dollars in thousands)	2019		2019		2019
Pass	$	31,690	$	432,710	$	300,678
Special mention		966		14,162		3,092
Substandard		913		569		3,423
Doubtful		—		—		—
	$	33,569	$	447,441	$	307,193


			Other Income Producing
		Commercial & Industrial	Property		Commercial Total
	December 31,			December 31,	December 31,
	2019		2019		2019
Pass	$	97,092	$	87,892	$	950,062
Special mention		2,948		5,837		27,005
Substandard		1,840		1,968		8,713
Doubtful		—		—		—
	$	101,880	$	95,697	$	985,780

The following table presents the credit risk profile by risk grade of consumer loans for acquired non-credit impaired loans for comparative periods, prior to the adoption of ASU 2016-13, under the incurred loss model:


	Consumer Owner Occupied		Home Equity		Consumer
	December 31,		December 31,		December 31,
(Dollars in thousands)	2019		2019		2019
Pass	$	486,433	$	174,912	$	86,535
Special mention		6,434		5,679		654
Substandard		3,564		8,141		2,295
Doubtful		—		—		—
	$	496,431	$	188,732	$	89,484


	Consumer Total
	December 31,
(Dollars in thousands)	2019
Pass	$	747,880
Special mention		12,767
Substandard		14,000
Doubtful		—
	$	774,647

The following table presents the credit risk profile by risk grade of total acquired non-credit impaired loans for comparative periods, prior to the adoption of ASU 2016-13, under the incurred loss model:


	Total Acquired
	Non-credit Impaired Loans
	December 31,
(Dollars in thousands)	2019
Pass	$	1,697,942
Special mention		39,772
Substandard		22,713
Doubtful		—
	$	1,760,427

The following table presents the credit risk profile by risk grade of acquired credit impaired loans (identified as credit-impaired at the time of acquisition), net of the related discount for comparative periods, prior to the adoption of ASU 2016-13, under the incurred loss model:


				Commercial Real Estate—
			Construction and
	Commercial Real Estate		Development
		December 31,		December 31,
(Dollars in thousands)	2019		2019
Pass	$	108,762	$	17,756
Special mention		6,465		2,904
Substandard		15,711		4,372
Doubtful		—		—
	$	130,938	$	25,032


	Residential Real Estate		Consumer		Commercial & Industrial
	December 31,		December 31,		December 31,
	2019		2019		2019
Pass	$	82,203	$	4,483	$	5,160
Special mention		35,968		12,658		286
Substandard		45,188		18,347		1,583
Doubtful		—		—		—
	$	163,359	$	35,488	$	7,029


	Total Acquired
	Credit Impaired Loans
	December 31,
	2019
Pass	$	218,364
Special mention		58,281
Substandard		85,201
Doubtful		—
	$	361,846

The risk grading of acquired credit impaired loans is determined utilizing a loan’s contractual balance, while the amount recorded in the financial statements and reflected above is the carrying value.

The following table presents an aging analysis of past due accruing loans, segregated by class:

30 - 59 Days

60 - 89 Days

90+ Days

Total

(Dollars in thousands)

Past Due

Current

Non-Accruing

Loans

December 31, 2020

Construction and land development

520

1,142

—

1,662

1,894,983

2,421

1,899,066

Commercial non-owner occupied

188

372

471

1,031

5,925,696

4,596

5,931,323

Commercial owner occupied

2,900

840

—

3,740

4,812,293

26,059

4,842,092

Consumer owner occupied

1,375

3,632

5,041

4,072,255

30,746

4,108,042

Home equity loans

1,805

481

—

2,286

1,324,459

9,944

1,336,689

Commercial and industrial

10,979

22,089

10,864

43,932

4,993,997

9,218

5,047,147

Other income producing property

687

—

278

965

580,353

6,130

587,448

Consumer

1,718

818

2,540

885,720

6,074

894,334

Other loans

—

17,974

—

17,993

20,185

29,380

11,651

61,216

24,507,730

95,188

24,664,134

The following table presents an aging analysis of past due accruing loans, segregated by class for non-acquired loans, for comparative periods, prior to the adoption of ASU 2016-13:


	30 - 59 Days		60 - 89 Days		90+ Days		Total				Total
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans
December 31, 2019
Commercial real estate:
Construction and land development	$	321	$	39	$	255	$	615	$	967,745	$	968,360
Commercial non-owner occupied		114		—		299		413		1,810,725		1,811,138
Commercial owner occupied		4,011		636		2,302		6,949		1,777,068		1,784,017
Consumer real estate:
Consumer owner occupied		1,157		285		2,424		3,866		2,114,973		2,118,839
Home equity loans		1,343		39		562		1,944		516,684		518,628
Commercial and industrial		5,531		100		649		6,280		1,274,579		1,280,859
Other income producing property		208		—		457		665		217,952		218,617
Consumer		825		285		826		1,936		536,545		538,481
Other loans		25		3		—		28		13,864		13,892
	$	13,535	$	1,387	$	7,774	$	22,696	$	9,230,135	$	9,252,831

The following table presents an aging analysis of past due accruing loans, segregated by class for acquired non-credit impaired loans, for comparative periods, prior to the adoption of ASU 2016-13:


	30 - 59 Days		60 - 89 Days		90+ Days		Total				Total
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans
December 31, 2019
Commercial real estate:
Construction and land development	$	20	$	—	$	256	$	276	$	33,293	$	33,569
Commercial non-owner occupied		144		1,146		76		1,366		446,075		447,441
Commercial owner occupied		890		702		698		2,290		304,903		307,193
Consumer real estate:
Consumer owner occupied		768		151		414		1,333		495,098		496,431
Home equity loans		369		55		1,154		1,578		187,154		188,732
Commercial and industrial		93		204		17		314		101,566		101,880
Other income producing property		378		4,309		551		5,238		90,459		95,697
Consumer		485		613		423		1,521		87,963		89,484
	$	3,147	$	7,180	$	3,589	$	13,916	$	1,746,511	$	1,760,427

The following table presents an aging analysis of past due accruing loans, segregated by class for acquired credit impaired loans, for comparative periods, prior to the adoption of ASU 2016-13:


	30 - 59 Days		60 - 89 Days		90+ Days		Total				Total
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans
December 31, 2019
Commercial real estate	$	2,283	$	—	$	2,659	$	4,942	$	125,996	$	130,938
Commercial real estate—construction and development		—		—		393		393		24,639		25,032
Residential real estate		2,838		976		5,571		9,385		153,974		163,359
Consumer		820		283		534		1,637		33,851		35,488
Commercial and industrial		118		910		75		1,103		5,926		7,029
	$	6,059	$	2,169	$	9,232	$	17,460	$	344,386	$	361,846

The following is a summary of information pertaining to nonaccrual loans by class, including restructured loans:


	December 31,		December 31,		Greater than		Non-accrual
(Dollars in thousands)	2019		2020		90 Days Accruing⁽¹⁾		with no allowance⁽¹⁾
Construction and land development	$	1,193	$	2,421	$	—	$	533
Commercial non-owner occupied		1,154		4,596		471		—
Commercial owner occupied real estate		4,385		26,059		—		9,351
Consumer owner occupied		9,718		30,746		34		383
Home equity loans		4,640		9,944		—		52
Commercial and industrial		6,913		9,218		10,864		585
Other income producing property		1,947		6,130		278		349
Consumer		3,191		6,074		4		—
Total loans on nonaccrual status	$	33,141	$	95,188	$	11,651	$	11,253

(1)– Greater than 90 days accruing and non-accrual with no allowance loans at December 31, 2020.

There is no interest income recognized during the period on nonaccrual loans. The Company follows its nonaccrual policy by reversing contractual interest income in the income statement when the Company places a loan on nonaccrual status. Loans on nonaccrual status in which there is no allowance assigned are individually evaluated loans that do not carry a specific reserve. See Note 1—Summary of Significant Accounting Policies for further detailed on individually evaluated loans. The increase in the nonaccrual balance in the above schedule, compared to December 31, 2019, is mainly due to the addition of nonaccrual loans of $69.3 million through the merger with CSFL in the second quarter. The increase was also partially due to the addition of $21.0 million of PCD loans, formerly accounted for as credit impaired loans, prior to the adoption of ASU 2016-13. These loans were previously excluded from nonaccrual loans. The adoption of ASU 2016-13 resulted in the discontinuation of the pool-level accounting for acquired credit impaired loans and replaced it with loan-level evaluation for nonaccrual status.

The following is a summary of information pertaining to non-acquired nonaccrual loans by class, including restructured loans, for comparative periods, prior to the adoption of ASU 2016-13:


	December 31,
(Dollars in thousands)	2019
Commercial non-owner occupied real estate:
Construction and land development	$	363
Commercial non-owner occupied		732
Total commercial non-owner occupied real estate		1,095
Consumer real estate:
Consumer owner occupied		7,202
Home equity loans		1,468
Total consumer real estate		8,670
Commercial owner occupied real estate		3,482
Commercial and industrial		4,092
Other income producing property		798
Consumer		1,587
Restructured loans		2,578
Total loans on nonaccrual status	$	22,302

The following is a summary of information pertaining to acquired non-credit impaired nonaccrual loans by class, including restructured loans, for comparative periods, prior to the adoption of ASU 2016-13:


	December 31,
(Dollars in thousands)	2019
Commercial non-owner occupied real estate:
Construction and land development	$	699
Commercial non-owner occupied		393
Total commercial non-owner occupied real estate		1,092
Consumer real estate:
Consumer owner occupied		2,350
Home equity loans		3,067
Total consumer real estate		5,417
Commercial owner occupied real estate		903
Commercial and industrial		722
Other income producing property		1,101
Consumer		1,604
Total loans on nonaccrual status	$	10,839

The following is a summary of collateral dependent loans, by type of collateral, and the extent to which they are collateralized during the period:


	December 31,		Collateral			December 31,		Collateral
(Dollars in thousands)	2019		Coverage		%	2020		Coverage		%
Commercial non-owner occupied
Church	$	245	$	846	345%	$	—	$	—
Office		1,045		1,800	172%		—		—
Other		398		648	163%		—		—
Retail		299		1,269	424%		—		—
Commercial owner occupied real estate
Church		—		—			—		—
Industrial		738		1,103	149%		—		—
Office		1,076		1,485	138%		1,076		1,485	138%
Retail		—		—			4,849		5,490	113%
Other		3,303		7,285	221%		1,010		1,075	106%
Consumer owner occupied
Other		5,413		9,286	172%		—		—
Home equity loans
Other		1,768		2,679	152%		—		—
Commercial and industrial
Industrial		291		702	241%		—		—
Other		3,696		8,442	228%		—		—
Other income producing property
Other		3,212		10,186	317%		—		—
Consumer
Other		363		525	145%		—		—
Total collateral dependent loans	$	21,847	$	46,256		$	6,935	$	8,050

The Bank designates individually evaluated loans (excluding TDRs) on non-accrual with a net book balance exceeding the designated threshold as collateral dependent loans. Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining ACL. Under ASC 326-20-35-6, the Bank has adopted the collateral maintenance practical expedient to measure the ACL based on the fair value of collateral. The ACL is calculated on an individual loan basis based on the shortfall between the fair value of the loan's collateral, which is adjusted for selling costs, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required. During the second quarter of 2020, the Bank increased the threshold limit for loans individually evaluated from $500,000 to $1.0 million. The significant changes above in collateral percentage are due to appraisal value updates or changes in the number of loans within the asset class and collateral type. Due to the threshold limit change, some of the loans with high collateral value have been removed. Overall collateral dependent loans decreased by $14.9 million from December 31, 2019 compared to the balance at December 31, 2020. Although additional collateral dependent loans of $17.6 million were assumed through the CSFL merger in June 2020, the increase was mostly offset by a reduction in collateral dependent loans, which was resulted from the change in the threshold limit.

In the course of resolving delinquent loans, the Bank may choose to restructure the contractual terms of certain loans. Any loans that are modified are reviewed by the Bank to determine if a TDR, sometimes referred to herein as a restructured loan, has occurred. The Bank designates loan modifications as TDRs when it grants a concession to a borrower that it would not otherwise consider due to the borrower experiencing financial difficulty (FASB ASC Topic 310-40). The concessions granted on TDRs generally include terms to reduce the interest rate, extend the term of the debt obligation, or modify the payment structure on the debt obligation. See Note 1—Summary of Significant Accounting Policies for how such modifications are factored into the determination of the ACL.

Loans on nonaccrual status at the date of modification are initially classified as nonaccrual TDRs. Loans on accruing status at the date of concession are initially classified as accruing TDRs if the note is reasonably assured of repayment and performance is expected in accordance with its modified terms. Such loans may be designated as nonaccrual loans subsequent to the concession date if reasonable doubt exists as to the collection of interest or principal under the restructuring agreement. Nonaccrual TDRs are returned to accruing status when there is economic substance to the restructuring, there is documented credit evaluation of the borrower’s financial condition, the remaining balance is reasonably assured of repayment in accordance with its modified terms, and the borrower has demonstrated sustained repayment performance in accordance with the modified terms for a reasonable period of time (generally a minimum of six months). In prior periods, our TDR levels were deemed to be immaterial, therefore no comparative data is shown.

The Company elected the accounting policy in the CARES Act to not apply TDR accounting to loans modified for borrowers impacted by the COVID-19 pandemic if the concession meets the criteria stipulated in the CARES Act. Details in regards to the Company’s implemented loan modification programs in response to the COVID-19 pandemic under the CARES Act is disclosed under the Note 1—Summary of Significant Accounting Policies.

The following table presents loans designated as TDRs segregated by class and type of concession that were restructured during the year ended December 31, 2020.


	Year Ended December 31, 2020
		Pre-Modification	Post-Modification
	Number	Amortized	Amortized
(Dollars in thousands)	of loans	Cost	Cost
Interest rate modification
Construction and land development	2	$96	$96
Commercial non-owner occupied	--	--	--
Commercial owner occupied	4	6,905	6,905
Consumer owner occupied	1	28	28
Home equity loans	1	52	52
Commercial and industrial	3	372	372
Other income producing property	2	71	71
Consumer	--	--	--
Other loans	--	--	--
Total interest rate modifications	13	$7,524	$7,524
Term modification
Construction and land development	--	$--	$--
Commercial non-owner occupied	--	--	--
Commercial owner occupied	1	180	180
Consumer owner occupied	5	579	579
Home equity loans	1	50	50
Commercial and industrial	2	284	284
Other income producing property	1	338	338
Consumer	3	120	120
Other loans	--	--	--
Total term modifications	13	$1,551	$1,551
	26	$ 9,075	$ 9,075

At December 31, 2020, the balance of accruing TDRs was $14.6 million. The Company had $576,493 remaining availability under commitments to lend additional funds on restructured loans at December 31, 2020. The amount of specific reserve associated with restructured loans was $1.2 million at December 31, 2020.

The following table presents the changes in status of loans restructured within the previous 12 months as of December 31, 2020 by type of concession. The subsequent default in this case had no impact on the expected credit losses.


	Paying Under
	Restructured Terms		Converted to Nonaccrual		Foreclosures and Defaults
	Number	Amortized	Number	Amortized	Number	Amortized
(Dollars in thousands)	of Loans	Cost	of Loans	Cost	of Loans	Cost
Interest rate modification	12	$ 7,224	--	$--	1	$300
Term modification	13	1,551	--	--	--	--
	25	$ 8,775	--	$--	1	$300