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Non Purchased Loans | 9 Months Ended
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Sep. 30, 2019
Receivables [Abstract] |
Non Purchased Loans | Non Purchased Loans (In Thousands, Except Number of Loans) For purposes of this Note 4, all references to “loans” mean non purchased loans excluding loans held for sale. The following is a summary of non purchased loans and leases as of the dates presented:
| September 30, 2019 |  | December 31, 2018
Commercial, financial, agricultural | $ | 988,867 |  |  | $ | 875,649 |
Lease financing | 73,617 |  |  | 64,992 |
Real estate – construction | 764,589 |  |  | 635,519 |
Real estate – 1-4 family mortgage | 2,235,908 |  |  | 2,087,890 |
Real estate – commercial mortgage | 2,809,470 |  |  | 2,628,365 |
Installment loans to individuals | 163,031 |  |  | 100,424 |
Gross loans | 7,035,482 |  |  | 6,392,839 |
Unearned income | (3,664 | ) |  | (3,127 | )
Loans, net of unearned income | $ | 7,031,818 |  |  | $ | 6,389,712 |
Past Due and Nonaccrual Loans Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Generally, the recognition of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Consumer and other retail loans are typically charged-off no later than the time the loan is 120 days past due. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due. All interest accrued for the current year, but not collected, for loans that are placed on nonaccrual status or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The following table provides an aging of past due accruing and nonaccruing loans, segregated by class, as of the dates presented:
| Accruing Loans |  | Nonaccruing Loans |  |
| 30-89 Days Past Due |  | 90 Days or More Past Due |  | Current Loans |  | Total Loans |  | 30-89 Days Past Due |  | 90 Days or More Past Due |  | Current Loans |  | Total Loans |  | Total Loans
September 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, agricultural | $ | 931 |  |  | $ | 917 |  |  | $ | 981,535 |  |  | $ | 983,383 |  |  | $ | — |  |  | $ | 5,301 |  |  | $ | 183 |  |  | $ | 5,484 |  |  | $ | 988,867 |
Lease financing | 676 |  |  | 404 |  |  | 72,537 |  |  | 73,617 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 73,617 |
Real estate – construction | 139 |  |  | 128 |  |  | 764,068 |  |  | 764,335 |  |  | — |  |  | — |  |  | 254 |  |  | 254 |  |  | 764,589 |
Real estate – 1-4 family mortgage | 9,420 |  |  | 4,373 |  |  | 2,216,947 |  |  | 2,230,740 |  |  | 613 |  |  | 2,961 |  |  | 1,594 |  |  | 5,168 |  |  | 2,235,908 |
Real estate – commercial mortgage | 799 |  |  | 1,435 |  |  | 2,802,517 |  |  | 2,804,751 |  |  | 420 |  |  | 2,927 |  |  | 1,372 |  |  | 4,719 |  |  | 2,809,470 |
Installment loans to individuals | 837 |  |  | 68 |  |  | 162,018 |  |  | 162,923 |  |  | — |  |  | 39 |  |  | 69 |  |  | 108 |  |  | 163,031 |
Unearned income | — |  |  | — |  |  | (3,664 | ) |  | (3,664 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (3,664 | )
Total | $ | 12,802 |  |  | $ | 7,325 |  |  | $ | 6,995,958 |  |  | $ | 7,016,085 |  |  | $ | 1,033 |  |  | $ | 11,228 |  |  | $ | 3,472 |  |  | $ | 15,733 |  |  | $ | 7,031,818 |
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, agricultural | $ | 3,397 |  |  | $ | 267 |  |  | $ | 870,457 |  |  | $ | 874,121 |  |  | $ | — |  |  | $ | 1,356 |  |  | $ | 172 |  |  | $ | 1,528 |  |  | $ | 875,649 |
Lease financing | 607 |  |  | 89 |  |  | 64,296 |  |  | 64,992 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 64,992 |
Real estate – construction | 887 |  |  | — |  |  | 634,632 |  |  | 635,519 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 635,519 |
Real estate – 1-4 family mortgage | 10,378 |  |  | 2,151 |  |  | 2,071,401 |  |  | 2,083,930 |  |  | 238 |  |  | 2,676 |  |  | 1,046 |  |  | 3,960 |  |  | 2,087,890 |
Real estate – commercial mortgage | 1,880 |  |  | 13 |  |  | 2,621,902 |  |  | 2,623,795 |  |  | — |  |  | 2,974 |  |  | 1,596 |  |  | 4,570 |  |  | 2,628,365 |
Installment loans to individuals | 368 |  |  | 165 |  |  | 99,731 |  |  | 100,264 |  |  | 3 |  |  | 157 |  |  | — |  |  | 160 |  |  | 100,424 |
Unearned income | — |  |  | — |  |  | (3,127 | ) |  | (3,127 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (3,127 | )
Total | $ | 17,517 |  |  | $ | 2,685 |  |  | $ | 6,359,292 |  |  | $ | 6,379,494 |  |  | $ | 241 |  |  | $ | 7,163 |  |  | $ | 2,814 |  |  | $ | 10,218 |  |  | $ | 6,389,712 |
Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Impairment is measured on a loan-by-loan basis for commercial, consumer and construction loans of $500 or more by, as applicable, the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are evaluated collectively for impairment. When the ultimate collectability of an impaired loan’s principal is in doubt, wholly or partially, the loan is placed on nonaccrual status and all cash receipts are applied to principal. Once the recorded balance has been reduced to zero, future cash receipts are applied to interest income, to the extent any interest has been foregone, and then they are recorded as recoveries of any amounts previously charged-off. For impaired loans, a specific reserve is established to adjust the carrying value of the loan to its estimated net realizable value. Loans accounted for under FASB Accounting Standards Codification (“ASC”) 310-20, “Nonrefundable Fees and Other Cost” (“ASC 310-20”), and which are impaired loans recognized in conformity with ASC 310, “Receivables” (“ASC 310”), segregated by class, were as follows as of the dates presented:
| Unpaid Contractual Principal Balance |  | Recorded Investment With Allowance |  | Recorded Investment With No Allowance |  | Total Recorded Investment |  | Related Allowance
September 30, 2019 |  |  |  |  |  |  |  |  |
Commercial, financial, agricultural | $ | 5,993 |  |  | $ | 5,609 |  |  | $ | — |  |  | $ | 5,609 |  |  | $ | 1,100 |
Lease financing | — |  |  | — |  |  | — |  |  | — |  |  | — |
Real estate – construction | 12,128 |  |  | 3,573 |  |  | 8,551 |  |  | 12,124 |  |  | 22 |
Real estate – 1-4 family mortgage | 12,406 |  |  | 12,067 |  |  | — |  |  | 12,067 |  |  | 163 |
Real estate – commercial mortgage | 13,410 |  |  | 9,497 |  |  | 1,120 |  |  | 10,617 |  |  | 444 |
Installment loans to individuals | 131 |  |  | 125 |  |  | — |  |  | 125 |  |  | 1 |
Total | $ | 44,068 |  |  | $ | 30,871 |  |  | $ | 9,671 |  |  | $ | 40,542 |  |  | $ | 1,730 |
December 31, 2018 |  |  |  |  |  |  |  |  |
Commercial, financial, agricultural | $ | 2,280 |  |  | $ | 1,834 |  |  | $ | — |  |  | $ | 1,834 |  |  | $ | 163 |
Lease financing | — |  |  | — |  |  | — |  |  | — |  |  | — |
Real estate – construction | 9,467 |  |  | 7,302 |  |  | 2,165 |  |  | 9,467 |  |  | 63 |
Real estate – 1-4 family mortgage | 9,767 |  |  | 9,077 |  |  | — |  |  | 9,077 |  |  | 61 |
Real estate – commercial mortgage | 8,625 |  |  | 4,609 |  |  | 1,238 |  |  | 5,847 |  |  | 689 |
Installment loans to individuals | 232 |  |  | 223 |  |  | — |  |  | 223 |  |  | 1 |
Totals | $ | 30,371 |  |  | $ | 23,045 |  |  | $ | 3,403 |  |  | $ | 26,448 |  |  | $ | 977 |
The following table presents the average recorded investment and interest income recognized on loans accounted for under ASC 310-20 and which are impaired loans for the periods presented:
| Three Months Ended |  | Three Months Ended
| September 30, 2019 |  | September 30, 2018
| Average Recorded Investment |  | Interest Income Recognized |  | Average Recorded Investment |  | Interest Income Recognized
Commercial, financial, agricultural | $ | 5,705 |  |  | $ | 5 |  |  | $ | 1,979 |  |  | $ | 11 |
Lease financing | — |  |  | — |  |  | — |  |  | — |
Real estate – construction | 12,128 |  |  | 111 |  |  | 9,725 |  |  | 42 |
Real estate – 1-4 family mortgage | 12,203 |  |  | 50 |  |  | 8,136 |  |  | 51 |
Real estate – commercial mortgage | 10,692 |  |  | 41 |  |  | 6,258 |  |  | 37 |
Installment loans to individuals | 130 |  |  | — |  |  | 118 |  |  | 1 |
Total | $ | 40,858 |  |  | $ | 207 |  |  | $ | 26,216 |  |  | $ | 142 |
| Nine Months Ended |  | Nine Months Ended
| September 30, 2019 |  | September 30, 2018
| Average Recorded Investment |  | Interest Income Recognized |  | Average Recorded Investment |  | Interest Income Recognized
Commercial, financial, agricultural | $ | 5,656 |  |  | $ | 23 |  |  | $ | 2,204 |  |  | $ | 31 |
Lease financing | — |  |  | — |  |  | — |  |  | — |
Real estate – construction | 11,756 |  |  | 321 |  |  | 9,621 |  |  | 109 |
Real estate – 1-4 family mortgage | 12,323 |  |  | 153 |  |  | 8,388 |  |  | 174 |
Real estate – commercial mortgage | 10,652 |  |  | 122 |  |  | 6,354 |  |  | 117 |
Installment loans to individuals | 130 |  |  | 1 |  |  | 121 |  |  | 2 |
Total | $ | 40,517 |  |  | $ | 620 |  |  | $ | 26,688 |  |  | $ | 433 |
Restructured Loans Restructured loans are those for which concessions have been granted to the borrower due to a deterioration of the borrower’s financial condition and which are performing in accordance with the new terms. Such concessions may include reduction in interest rates or deferral of interest or principal payments. In evaluating whether to restructure a loan, management analyzes the long-term financial condition of the borrower, including guarantor and collateral support, to determine whether the proposed concessions will increase the likelihood of repayment of principal and interest. The tables below illustrate the impact of modifications classified as restructured loans which were made during the periods presented and held on the Consolidated Balance Sheets at the respective period end. There were no newly restructured loans during the three months ended September 30, 2018.
| Number of Loans |  | Pre- Modification Outstanding Recorded Investment |  | Post- Modification Outstanding Recorded Investment
Three months ended September 30, 2019 |  |  |  |  |
Real estate – 1-4 family mortgage | 1 |  |  | $ | 16 |  |  | $ | 16 |
Total | 1 |  |  | $ | 16 |  |  | $ | 16 |
| Number of Loans |  | Pre- Modification Outstanding Recorded Investment |  | Post- Modification Outstanding Recorded Investment
Nine months ended September 30, 2019 |  |  |  |  |
Commercial, financial, agricultural | 2 |  |  | $ | 187 |  |  | $ | 185 |
Real estate – 1-4 family mortgage | 4 |  |  | 321 |  |  | 320 |
Total | 6 |  |  | $ | 508 |  |  | $ | 505 |
Nine months ended September 30, 2018 |  |  |  |  |
Real estate – 1-4 family mortgage | 4 |  |  | $ | 625 |  |  | $ | 625 |
Real estate – commercial mortgage | 1 |  |  | 83 |  |  | 78 |
Total | 5 |  |  | $ | 708 |  |  | $ | 703 |
With respect to loans that were restructured during the nine months ended September 30, 2019, $61 have subsequently defaulted as of the date of this report. With respect to loans that were restructured during the nine months ended September 30, 2018, none subsequently defaulted within twelve months of the restructuring. Restructured loans not performing in accordance with their restructured terms that are either contractually 90 days or more past due or placed on nonaccrual status are reported as nonperforming loans. There was one restructured loan in the amount of $40 contractually 90 days past due or more and still accruing at September 30, 2019 and two restructured loans in the amount of $228 contractually 90 days past due or more and still accruing at September 30, 2018. The outstanding balance of restructured loans on nonaccrual status was $3,101 and $3,147 at September 30, 2019 and September 30, 2018, respectively. Changes in the Company’s restructured loans are set forth in the table below:
| Number of Loans |  | Recorded Investment
Totals at January 1, 2019 | 51 |  |  | $ | 5,325 |
Additional advances or loans with concessions | 6 |  |  | 522 |
Reclassified as performing restructured loan | 2 |  |  | 78 |
Reductions due to: |  |  |
Reclassified as nonperforming | (6 | ) |  | (505 | )
Paid in full | (6 | ) |  | (416 | )
Principal paydowns | — |  |  | (119 | )
Totals at September 30, 2019 | 47 |  |  | $ | 4,885 |
The allocated allowance for loan losses attributable to restructured loans was $30 and $33 at September 30, 2019 and September 30, 2018, respectively. The Company had $1 and $19 in remaining availability under commitments to lend additional funds on these restructured loans at September 30, 2019 and September 30, 2018, respectively. Credit Quality For commercial and commercial real estate loans, internal risk-rating grades are assigned by lending, credit administration or loan review personnel, based on an analysis of the financial and collateral strength and other credit attributes underlying each loan. Management analyzes the resulting ratings, as well as other external statistics and factors such as delinquency, to track the migration performance of the portfolio balances of these loans. Loan grades range between 1 and 9, with 1 being loans with the least credit risk. Loans within the “Pass” grade (historically, those with a risk rating between 1 and 4) generally have a lower risk of loss and therefore a lower risk factor applied to the loan balances. Management has established more granular risk rating categories to better identify heightened credit risk as loans migrate downward in the risk rating system. The “Pass” grade is now reserved for loans with a risk rating between 1 and 4A, and the “Watch” grade (those with a risk rating of 4B and 4E) is utilized on a temporary basis for “Pass” grade loans where a significant adverse risk-modifying action is anticipated in the near term. Loans that migrate toward the “Substandard” grade (those with a risk rating between 5 and 9) generally have a higher risk of loss and therefore a higher risk factor applied to the related loan balances. The following table presents the Company’s loan portfolio by risk-rating grades as of the dates presented:
| Pass |  | Watch |  | Substandard |  | Total
September 30, 2019 |  |  |  |  |  |  |
Commercial, financial, agricultural | $ | 742,438 |  |  | $ | 12,351 |  |  | $ | 12,803 |  |  | $ | 767,592 |
Real estate – construction | 691,112 |  |  | 2,923 |  |  | 8,914 |  |  | 702,949 |
Real estate – 1-4 family mortgage | 320,874 |  |  | 3,520 |  |  | 3,010 |  |  | 327,404 |
Real estate – commercial mortgage | 2,419,230 |  |  | 34,179 |  |  | 25,801 |  |  | 2,479,210 |
Installment loans to individuals | 28 |  |  | — |  |  | — |  |  | 28 |
Total | $ | 4,173,682 |  |  | $ | 52,973 |  |  | $ | 50,528 |  |  | $ | 4,277,183 |
December 31, 2018 |  |  |  |  |  |  |
Commercial, financial, agricultural | $ | 615,803 |  |  | $ | 18,326 |  |  | $ | 6,973 |  |  | $ | 641,102 |
Real estate – construction | 558,494 |  |  | 2,317 |  |  | 8,157 |  |  | 568,968 |
Real estate – 1-4 family mortgage | 321,564 |  |  | 4,660 |  |  | 4,260 |  |  | 330,484 |
Real estate – commercial mortgage | 2,210,100 |  |  | 54,579 |  |  | 24,144 |  |  | 2,288,823 |
Installment loans to individuals | — |  |  | — |  |  | — |  |  | — |
Total | $ | 3,705,961 |  |  | $ | 79,882 |  |  | $ | 43,534 |  |  | $ | 3,829,377 |
For portfolio balances of consumer, small balance consumer mortgage loans, such as 1-4 family mortgage loans, and certain other loans originated for other than commercial purposes, allowance factors are determined based on historical loss ratios by portfolio for the preceding eight quarters and may be adjusted by other qualitative criteria. The following table presents the performing status of the Company’s loan portfolio not subject to risk rating as of the dates presented:
| Performing |  | Non- Performing |  | Total
September 30, 2019 |  |  |  |  |
Commercial, financial, agricultural | $ | 219,469 |  |  | $ | 1,806 |  |  | $ | 221,275 |
Lease financing | 69,549 |  |  | 404 |  |  | 69,953 |
Real estate – construction | 61,258 |  |  | 382 |  |  | 61,640 |
Real estate – 1-4 family mortgage | 1,899,433 |  |  | 9,071 |  |  | 1,908,504 |
Real estate – commercial mortgage | 328,755 |  |  | 1,505 |  |  | 330,260 |
Installment loans to individuals | 162,827 |  |  | 176 |  |  | 163,003 |
Total | $ | 2,741,291 |  |  | $ | 13,344 |  |  | $ | 2,754,635 |
December 31, 2018 |  |  |  |  |
Commercial, financial, agricultural | $ | 233,046 |  |  | $ | 1,501 |  |  | $ | 234,547 |
Lease financing | 61,776 |  |  | 89 |  |  | 61,865 |
Real estate – construction | 66,551 |  |  | — |  |  | 66,551 |
Real estate – 1-4 family mortgage | 1,751,994 |  |  | 5,412 |  |  | 1,757,406 |
Real estate – commercial mortgage | 338,367 |  |  | 1,175 |  |  | 339,542 |
Installment loans to individuals | 100,099 |  |  | 325 |  |  | 100,424 |
Total | $ | 2,551,833 |  |  | $ | 8,502 |  |  | $ | 2,560,335 |
Purchased Loans (In Thousands, Except Number of Loans) For purposes of this Note 5, all references to “loans” mean purchased loans excluding loans held for sale. The following is a summary of purchased loans as of the dates presented:
| September 30, 2019 |  | December 31, 2018
Commercial, financial, agricultural | $ | 339,693 |  |  | $ | 420,263 |
Real estate – construction | 52,106 |  |  | 105,149 |
Real estate – 1-4 family mortgage | 561,725 |  |  | 707,453 |
Real estate – commercial mortgage | 1,212,905 |  |  | 1,423,144 |
Installment loans to individuals | 115,537 |  |  | 37,408 |
Gross loans | 2,281,966 |  |  | 2,693,417 |
Unearned income | — |  |  | — |
Loans, net of unearned income | $ | 2,281,966 |  |  | $ | 2,693,417 |
Past Due and Nonaccrual Loans The Company’s policies with respect to placing loans on nonaccrual status or charging off loans, and its accounting for interest on any such loans, are described above in Note 4, “Non Purchased Loans.” The following table provides an aging of past due accruing and nonaccruing loans, segregated by class, as of the dates presented:
| Accruing Loans |  | Nonaccruing Loans |  |
| 30-89 Days Past Due |  | 90 Days or More Past Due |  | Current Loans |  | Total Loans |  | 30-89 Days Past Due |  | 90 Days or More Past Due |  | Current Loans |  | Total Loans |  | Total Loans
September 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, agricultural | $ | 2,133 |  |  | $ | 1,676 |  |  | $ | 334,410 |  |  | $ | 338,219 |  |  | $ | — |  |  | $ | 1,184 |  |  | $ | 290 |  |  | $ | 1,474 |  |  | $ | 339,693 |
Real estate – construction | 375 |  |  | — |  |  | 51,731 |  |  | 52,106 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 52,106 |
Real estate – 1-4 family mortgage | 5,829 |  |  | 2,943 |  |  | 549,220 |  |  | 557,992 |  |  | 333 |  |  | 1,852 |  |  | 1,548 |  |  | 3,733 |  |  | 561,725 |
Real estate – commercial mortgage | 3,674 |  |  | 2,345 |  |  | 1,206,299 |  |  | 1,212,318 |  |  | — |  |  | 254 |  |  | 333 |  |  | 587 |  |  | 1,212,905 |
Installment loans to individuals | 4,458 |  |  | 70 |  |  | 110,680 |  |  | 115,208 |  |  | 24 |  |  | 41 |  |  | 264 |  |  | 329 |  |  | 115,537 |
Total | $ | 16,469 |  |  | $ | 7,034 |  |  | $ | 2,252,340 |  |  | $ | 2,275,843 |  |  | $ | 357 |  |  | $ | 3,331 |  |  | $ | 2,435 |  |  | $ | 6,123 |  |  | $ | 2,281,966 |
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, agricultural | $ | 1,811 |  |  | $ | 97 |  |  | $ | 417,786 |  |  | $ | 419,694 |  |  | $ | — |  |  | $ | 477 |  |  | $ | 92 |  |  | $ | 569 |  |  | $ | 420,263 |
Real estate – construction | 1,235 |  |  | 68 |  |  | 103,846 |  |  | 105,149 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 105,149 |
Real estate – 1-4 family mortgage | 8,981 |  |  | 4,455 |  |  | 690,697 |  |  | 704,133 |  |  | 202 |  |  | 1,881 |  |  | 1,237 |  |  | 3,320 |  |  | 707,453 |
Real estate – commercial mortgage | 5,711 |  |  | 2,410 |  |  | 1,413,346 |  |  | 1,421,467 |  |  | — |  |  | 1,401 |  |  | 276 |  |  | 1,677 |  |  | 1,423,144 |
Installment loans to individuals | 1,342 |  |  | 202 |  |  | 35,594 |  |  | 37,138 |  |  | 2 |  |  | 24 |  |  | 244 |  |  | 270 |  |  | 37,408 |
Total | $ | 19,080 |  |  | $ | 7,232 |  |  | $ | 2,661,269 |  |  | $ | 2,687,581 |  |  | $ | 204 |  |  | $ | 3,783 |  |  | $ | 1,849 |  |  | $ | 5,836 |  |  | $ | 2,693,417 |
Impaired Loans The Company’s policies with respect to the determination of whether a loan is impaired and the treatment of such loans are described above in Note 4, “Non Purchased Loans.” Loans accounted for under ASC 310-20, and which are impaired loans recognized in conformity with ASC 310, segregated by class, were as follows as of the dates presented:
| Unpaid Contractual Principal Balance |  | Recorded Investment With Allowance |  | Recorded Investment With No Allowance |  | Total Recorded Investment |  | Related Allowance
September 30, 2019 |  |  |  |  |  |  |  |  |
Commercial, financial, agricultural | $ | 2,565 |  |  | $ | 2,495 |  |  | $ | 20 |  |  | $ | 2,515 |  |  | $ | 282 |
Real estate – construction | 256 |  |  | 256 |  |  | — |  |  | 256 |  |  | 2 |
Real estate – 1-4 family mortgage | 5,982 |  |  | 2,983 |  |  | 2,282 |  |  | 5,265 |  |  | 23 |
Real estate – commercial mortgage | 1,172 |  |  | 930 |  |  | 208 |  |  | 1,138 |  |  | 6 |
Installment loans to individuals | 354 |  |  | 247 |  |  | 83 |  |  | 330 |  |  | 2 |
Total | $ | 10,329 |  |  | $ | 6,911 |  |  | $ | 2,593 |  |  | $ | 9,504 |  |  | $ | 315 |
December 31, 2018 |  |  |  |  |  |  |  |  |
Commercial, financial, agricultural | $ | 671 |  |  | $ | 600 |  |  | $ | 11 |  |  | $ | 611 |  |  | $ | 173 |
Real estate – construction | 576 |  |  | 576 |  |  | — |  |  | 576 |  |  | 5 |
Real estate – 1-4 family mortgage | 5,787 |  |  | 1,381 |  |  | 3,780 |  |  | 5,161 |  |  | 18 |
Real estate – commercial mortgage | 2,266 |  |  | 2,066 |  |  | 146 |  |  | 2,212 |  |  | 338 |
Installment loans to individuals | 280 |  |  | 246 |  |  | 24 |  |  | 270 |  |  | 3 |
Totals | $ | 9,580 |  |  | $ | 4,869 |  |  | $ | 3,961 |  |  | $ | 8,830 |  |  | $ | 537 |
The following table presents the average recorded investment and interest income recognized on loans accounted for under ASC 310-20 and which are impaired loans for the periods presented:
| Three Months Ended |  | Three Months Ended
| September 30, 2019 |  | September 30, 2018
| Average Recorded Investment |  | Interest Income Recognized |  | Average Recorded Investment |  | Interest Income Recognized
Commercial, financial, agricultural | $ | 2,533 |  |  | $ | 2 |  |  | $ | 331 |  |  | $ | 3 |
Real estate – construction | 256 |  |  | — |  |  | 520 |  |  | 1 |
Real estate – 1-4 family mortgage | 5,364 |  |  | 30 |  |  | 4,817 |  |  | 33 |
Real estate – commercial mortgage | 1,150 |  |  | 11 |  |  | 1,511 |  |  | 12 |
Installment loans to individuals | 333 |  |  | — |  |  | 244 |  |  | — |
Total | $ | 9,636 |  |  | $ | 43 |  |  | $ | 7,423 |  |  | $ | 49 |
| Nine Months Ended |  | Nine Months Ended
| September 30, 2019 |  | September 30, 2018
| Average Recorded Investment |  | Interest Income Recognized |  | Average Recorded Investment |  | Interest Income Recognized
Commercial, financial, agricultural | $ | 2,312 |  |  | $ | 6 |  |  | $ | 334 |  |  | $ | 8 |
Real estate – construction | 256 |  |  | 3 |  |  | 520 |  |  | 2 |
Real estate – 1-4 family mortgage | 5,468 |  |  | 96 |  |  | 4,907 |  |  | 107 |
Real estate – commercial mortgage | 1,185 |  |  | 36 |  |  | 1,545 |  |  | 43 |
Installment loans to individuals | 340 |  |  | — |  |  | 244 |  |  | — |
Total | $ | 9,561 |  |  | $ | 141 |  |  | $ | 7,550 |  |  | $ | 160 |
Loans accounted for under ASC 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality” (“ASC 310-30”), and which are impaired loans recognized in conformity with ASC 310, segregated by class, were as follows as of the dates presented:
| Unpaid Contractual Principal Balance |  | Recorded Investment With Allowance |  | Recorded Investment With No Allowance |  | Total Recorded Investment |  | Related Allowance
September 30, 2019 |  |  |  |  |  |  |  |  |
Commercial, financial, agricultural | $ | 54,354 |  |  | $ | 3,417 |  |  | $ | 27,693 |  |  | $ | 31,110 |  |  | $ | 128 |
Real estate – construction | 624 |  |  | — |  |  | 605 |  |  | 605 |  |  | — |
Real estate – 1-4 family mortgage | 45,511 |  |  | 11,203 |  |  | 26,421 |  |  | 37,624 |  |  | 350 |
Real estate – commercial mortgage | 136,472 |  |  | 58,068 |  |  | 57,714 |  |  | 115,782 |  |  | 2,068 |
Installment loans to individuals | 6,013 |  |  | 646 |  |  | 2,347 |  |  | 2,993 |  |  | 2 |
Total | $ | 242,974 |  |  | $ | 73,334 |  |  | $ | 114,780 |  |  | $ | 188,114 |  |  | $ | 2,548 |
December 31, 2018 |  |  |  |  |  |  |  |  |
Commercial, financial, agricultural | $ | 44,403 |  |  | $ | 3,779 |  |  | $ | 25,364 |  |  | $ | 29,143 |  |  | $ | 161 |
Real estate – 1-4 family mortgage | 53,823 |  |  | 12,169 |  |  | 36,074 |  |  | 48,243 |  |  | 488 |
Real estate – commercial mortgage | 165,700 |  |  | 62,003 |  |  | 78,435 |  |  | 140,438 |  |  | 1,901 |
Installment loans to individuals | 8,290 |  |  | 660 |  |  | 3,770 |  |  | 4,430 |  |  | 2 |
Totals | $ | 272,216 |  |  | $ | 78,611 |  |  | $ | 143,643 |  |  | $ | 222,254 |  |  | $ | 2,552 |
The following table presents the average recorded investment and interest income recognized on loans accounted for under ASC 310-30 and which are impaired loans for the periods presented:
| Three Months Ended |  | Three Months Ended
| September 30, 2019 |  | September 30, 2018
| Average Recorded Investment |  | Interest Income Recognized |  | Average Recorded Investment |  | Interest Income Recognized
Commercial, financial, agricultural | $ | 32,150 |  |  | $ | 283 |  |  | $ | 11,705 |  |  | $ | 162 |
Real estate – construction | 558 |  |  | 8 |  |  | — |  |  | — |
Real estate – 1-4 family mortgage | 38,031 |  |  | 538 |  |  | 51,957 |  |  | 621 |
Real estate – commercial mortgage | 117,179 |  |  | 1,541 |  |  | 141,780 |  |  | 1,705 |
Installment loans to individuals | 3,192 |  |  | 86 |  |  | 1,608 |  |  | 18 |
Total | $ | 191,110 |  |  | $ | 2,456 |  |  | $ | 207,050 |  |  | $ | 2,506 |
| Nine Months Ended |  | Nine Months Ended
| September 30, 2019 |  | September 30, 2018
| Average Recorded Investment |  | Interest Income Recognized |  | Average Recorded Investment |  | Interest Income Recognized
Commercial, financial, agricultural | $ | 35,304 |  |  | $ | 1,145 |  |  | $ | 12,117 |  |  | $ | 579 |
Real estate – construction | 560 |  |  | 8 |  |  | — |  |  | — |
Real estate – 1-4 family mortgage | 38,682 |  |  | 1,699 |  |  | 53,093 |  |  | 1,941 |
Real estate – commercial mortgage | 119,327 |  |  | 5,015 |  |  | 144,530 |  |  | 5,610 |
Installment loans to individuals | 3,576 |  |  | 287 |  |  | 1,616 |  |  | 54 |
Total | $ | 197,449 |  |  | $ | 8,154 |  |  | $ | 211,356 |  |  | $ | 8,184 |
Restructured Loans An explanation of what constitutes a “restructured loan,” and management’s analysis in determining whether to restructure a loan, are described above in Note 4, “Non Purchased Loans.” The tables below illustrate the impact of modifications classified as restructured loans which were made during the periods presented and held on the Consolidated Balance Sheets at the respective period end. There were no newly restructured loans during the three months ended September 30, 2018.
| Number of Loans |  | Pre- Modification Outstanding Recorded Investment |  | Post- Modification Outstanding Recorded Investment
Three months ended September 30, 2019 |  |  |  |  |
Commercial, financial, agricultural | 1 |  |  | $ | 258 |  |  | $ | 258 |
Real estate – 1-4 family mortgage | 1 |  |  | $ | 34 |  |  | $ | 34 |
Total | 2 |  |  | $ | 292 |  |  | $ | 292 |
| Number of Loans |  | Pre- Modification Outstanding Recorded Investment |  | Post- Modification Outstanding Recorded Investment
Nine months ended September 30, 2019 |  |  |  |  |
Commercial, financial, agricultural | 2 |  |  | $ | 2,778 |  |  | $ | 2,778 |
Real estate – 1-4 family mortgage | 1 |  |  | $ | 34 |  |  | $ | 34 |
Real estate – commercial mortgage | 1 |  |  | 80 |  |  | 76 |
Total | 4 |  |  | $ | 2,892 |  |  | $ | 2,888 |
Nine months ended September 30, 2018 |  |  |  |  |
Commercial, financial, agricultural | 1 |  |  | $ | 48 |  |  | $ | 44 |
Real estate – 1-4 family mortgage | 1 |  |  | $ | 18 |  |  | $ | 17 |
Real estate – commercial mortgage | 1 |  |  | 8 |  |  | 7 |
Total | 3 |  |  | $ | 74 |  |  | $ | 68 |
With respect to loans that were restructured during the nine months ended September 30, 2019, none have subsequently defaulted as of the date of this report. With respect to loans that were restructured during the nine months ended September 30, 2018, $5 have subsequently defaulted within twelve months of the restructuring. There were two restructured loans in the amount of $272 contractually 90 days past due or more and still accruing at September 30, 2019 and three restructured loans in the amount of $503 contractually 90 days past due or more and still accruing at September 30, 2018. The outstanding balance of restructured loans on nonaccrual status was $707 and $493 at September 30, 2019 and September 30, 2018, respectively. Changes in the Company’s restructured loans are set forth in the table below:
| Number of Loans |  | Recorded Investment
Totals at January 1, 2019 | 54 |  |  | $ | 7,495 |
Additional advances or loans with concessions | 4 |  |  | 3,128 |
Reclassified as performing restructured loan | 13 |  |  | 1,788 |
Reductions due to: |  |  |
Reclassified to nonperforming loans | (9 | ) |  | (746 | )
Paid in full | (7 | ) |  | (370 | )
Measurement period adjustment on recently acquired loans | — |  |  | (2,376 | )
Principal paydowns | — |  |  | (375 | )
Totals at September 30, 2019 | 55 |  |  | $ | 8,544 |
The allocated allowance for loan losses attributable to restructured loans was $91 and $62 at September 30, 2019 and September 30, 2018, respectively. The Company had $5 and $2 in remaining availability under commitments to lend additional funds on these restructured loans at September 30, 2019 and September 30, 2018, respectively. Credit Quality A discussion of the Company’s policies regarding internal risk-rating of loans is discussed above in Note 4, “Non Purchased Loans.” The following table presents the Company’s loan portfolio by risk-rating grades as of the dates presented:
| Pass |  | Watch |  | Substandard |  | Total
September 30, 2019 |  |  |  |  |  |  |
Commercial, financial, agricultural | $ | 281,746 |  |  | $ | 7,323 |  |  | $ | 5,208 |  |  | $ | 294,277 |
Real estate – construction | 49,431 |  |  | — |  |  | — |  |  | 49,431 |
Real estate – 1-4 family mortgage | 80,714 |  |  | 3,874 |  |  | 5,448 |  |  | 90,036 |
Real estate – commercial mortgage | 1,006,704 |  |  | 44,714 |  |  | 15,971 |  |  | 1,067,389 |
Installment loans to individuals | — |  |  | — |  |  | — |  |  | — |
Total | $ | 1,418,595 |  |  | $ | 55,911 |  |  | $ | 26,627 |  |  | $ | 1,501,133 |
December 31, 2018 |  |  |  |  |  |  |
Commercial, financial, agricultural | $ | 333,147 |  |  | $ | 33,857 |  |  | $ | 2,744 |  |  | $ | 369,748 |
Real estate – construction | 101,122 |  |  | — |  |  | 842 |  |  | 101,964 |
Real estate – 1-4 family mortgage | 113,874 |  |  | 7,347 |  |  | 7,585 |  |  | 128,806 |
Real estate – commercial mortgage | 1,198,540 |  |  | 43,046 |  |  | 9,984 |  |  | 1,251,570 |
Installment loans to individuals | — |  |  | — |  |  | 2 |  |  | 2 |
Total | $ | 1,746,683 |  |  | $ | 84,250 |  |  | $ | 21,157 |  |  | $ | 1,852,090 |
The following table presents the performing status of the Company’s loan portfolio not subject to risk rating as of the dates presented:
| Performing |  | Non- Performing |  | Total
September 30, 2019 |  |  |  |  |
Commercial, financial, agricultural | $ | 14,012 |  |  | $ | 294 |  |  | $ | 14,306 |
Real estate – construction | 2,070 |  |  | — |  |  | 2,070 |
Real estate – 1-4 family mortgage | 430,549 |  |  | 3,516 |  |  | 434,065 |
Real estate – commercial mortgage | 29,629 |  |  | 105 |  |  | 29,734 |
Installment loans to individuals | 112,198 |  |  | 346 |  |  | 112,544 |
Total | $ | 588,458 |  |  | $ | 4,261 |  |  | $ | 592,719 |
December 31, 2018 |  |  |  |  |
Commercial, financial, agricultural | $ | 21,303 |  |  | $ | 69 |  |  | $ | 21,372 |
Real estate – construction | 3,185 |  |  | — |  |  | 3,185 |
Real estate – 1-4 family mortgage | 526,699 |  |  | 3,705 |  |  | 530,404 |
Real estate – commercial mortgage | 30,951 |  |  | 185 |  |  | 31,136 |
Installment loans to individuals | 32,676 |  |  | 300 |  |  | 32,976 |
Total | $ | 614,814 |  |  | $ | 4,259 |  |  | $ | 619,073 |
Loans Purchased with Deteriorated Credit Quality Loans purchased in business combinations that exhibited, at the date of acquisition, evidence of deterioration of the credit quality since origination, such that it was probable that all contractually required payments would not be collected, were as follows as of the dates presented:
| Total Purchased Credit Deteriorated Loans
September 30, 2019 |
Commercial, financial, agricultural | $ | 31,110 |
Real estate – construction | 605 |
Real estate – 1-4 family mortgage | 37,624 |
Real estate – commercial mortgage | 115,782 |
Installment loans to individuals | 2,993 |
Total | $ | 188,114 |
December 31, 2018 |
Commercial, financial, agricultural | $ | 29,143 |
Real estate – 1-4 family mortgage | 48,243 |
Real estate – commercial mortgage | 140,438 |
Installment loans to individuals | 4,430 |
Total | $ | 222,254 |
The following table presents the fair value of loans that exhibited evidence of deteriorated credit quality at the time of acquisition at September 30, 2019:
| Total Purchased Credit Deteriorated Loans
Contractually-required principal and interest | $ | 276,348 |
Nonaccretable difference(1) | (62,180 | )
Cash flows expected to be collected | 214,168 |
Accretable yield(2) | (26,054 | )
Fair value | $ | 188,114 |
(1) | Represents contractual principal and interest cash flows of $52,839 and $9,341, respectively, not expected to be collected.
(2) | Represents contractual principal and interest cash flows of $1,625 and $24,429, respectively, expected to be collected.
Changes in the accretable yield of loans purchased with deteriorated credit quality were as follows as of September 30, 2019:
| Total Purchased Credit Deteriorated Loans
Balance at January 1, 2019 | $ | (34,265 | )
Measurement period adjustment on recently acquired loans | (3,712 | )
Reclassification from nonaccretable difference | (6,056 | )
Accretion | 16,442 |
Charge-offs | 1,537 |
Balance at September 30, 2019 | $ | (26,054 | )
The following table presents the fair value of loans purchased from Brand as of the September 1, 2018 acquisition date.
At acquisition date: |  | September 1, 2018
Contractually-required principal and interest |  | $ | 1,625,079 |
Nonaccretable difference |  | (164,554 | )
Cash flows expected to be collected |  | 1,460,525 |
Accretable yield |  | (138,318 | )
Fair value |  | $ | 1,322,207 |

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