Schedule of activity in purchased credit impaired loans

The following table presents changes in the carrying value of PCI loans.

($ in thousands) Purchased Credit Impaired Loans	For the Year Ended December 31, 2018			For the Year Ended December 31, 2017
Balance at beginning of period	$	23,165			514
Additions due to acquisition of Carolina Bank		—			19,254
Additions due to acquisition of Asheville Savings Bank		—			9,886
Change due to payments received and accretion		(5,799	)		(6,016	)
Change due to loan charge-offs		(10	)		(12	)
Transfers to foreclosed real estate		(4	)		(69	)
Other		41			(392	)
Balance at end of period	$	17,393			23,165

The following table presents changes in the accretable yield for PCI loans.

($ in thousands) Accretable Yield for PCI loans	For the Year Ended December 31, 2018			For the Year Ended December 31, 2017
Balance at beginning of period	$	4,688			—
Additions due to acquisition of Carolina Bank		—			3,617
Additions due to acquisition of Asheville Savings Bank		—			1,804
Accretion		(2,050	)		(1,846	)
Reclassification from (to) nonaccretable difference		849			423
Other, net		1,263			690
Balance at end of period	$	4,750			4,688

Schedule of nonaccrual loans

The following is a summary the Company’s nonaccrual loans by major categories.

($ in thousands)	December 31, 2018		December 31, 2017
Commercial, financial, and agricultural	$	919		1,001
Real estate – construction, land development & other land loans		2,265		1,822
Real estate – mortgage – residential (1-4 family) first mortgages		10,115		12,201
Real estate – mortgage – home equity loans / lines of credit		1,685		2,524
Real estate – mortgage – commercial and other		7,452		3,345
Installment loans to individuals		139		75
Total	$	22,575		20,968

Schedule of activity in the allowance for loan losses for non-covered and covered loans

The following table presents the activity in the allowance for loan losses for the year ended December 31, 2018.

($ in thousands)	Commercial, Financial, and Agricultural			Real Estate – Construction, Land Development & Other Land Loans			Real Estate – Residential (1-4 Family) First Mortgages			Real Estate – Mortgage – Home Equity Lines of Credit			Real Estate – Mortgage – Commercial and Other			Install- ment Loans to Individuals			Unallo- cated			Total

As of and for the year ended December 31, 2018

Beginning balance	$	3,111			2,816			6,147			1,827			6,475			950			1,972			23,298
Charge-offs		(2,128	)		(158	)		(1,734	)		(711	)		(1,459	)		(781	)		—			(6,971	)
Recoveries		1,195			4,097			833			364			1,503			309			—			8,301
Provisions		711			(4,512	)		(49	)		185			1,464			474			(1,862	)		(3,589	)
Ending balance	$	2,889			2,243			5,197			1,665			7,983			952			110			21,039

Ending balances as of December 31, 2018: Allowance for loan losses
Individually evaluated for impairment	$	226			134			955			48			906			—			—			2,269
Collectively evaluated for impairment	$	2,661			2,109			4,143			1,608			7,070			941			110			18,642
Purchased credit impaired	$	2			—			99			9			7			11			—			128

Loans receivable as of December 31, 2018:
Ending balance – total	$	457,037			518,976			1,054,176			359,162			1,787,022			71,392			—			4,247,765
Unamortized net deferred loan costs																							1,299
Total loans																						$	4,249,064

Ending balances as of December 31, 2018: Loans
Individually evaluated for impairment	$	696			1,345			12,391			296			9,525			—			—			24,253
Collectively evaluated for impairment	$	456,111			517,453			1,035,532			358,522			1,767,361			71,140			—			4,206,119
Purchased credit impaired	$	230			178			6,253			344			10,136			252			—			17,393

The following table presents the activity in the allowance for loan losses for the year ended December 31, 2017.

($ in thousands)	Commercial, Financial, and Agricultural			Real Estate – Construction, Land Development & Other Land Loans			Real Estate – Residential (1-4 Family) First Mortgages			Real Estate – Mortgage – Home Equity Lines of Credit			Real Estate – Mortgage – Commercial and Other			Install- ment Loans to Individuals			Unallo- cated		Total

As of and for the year ended December 31, 2017

Beginning balance	$	3,829			2,691			7,704			2,420			5,098			1,145			894		23,781
Charge-offs		(1,622	)		(589	)		(2,641	)		(978	)		(1,182	)		(799	)		—		(7,811	)
Recoveries		1,311			2,579			1,076			333			1,027			279			—		6,605
Provisions		(407	)		(1,865	)		8			52			1,532			325			1,078		723
Ending balance	$	3,111			2,816			6,147			1,827			6,475			950			1,972		23,298

Ending balances as of December 31, 2017: Allowance for loan losses
Individually evaluated for impairment	$	215			18			1,099			—			232			—			—		1,564
Collectively evaluated for impairment	$	2,896			2,798			4,831			1,788			6,226			950			1,972		21,461
Purchased credit impaired	$	—			—			217			39			17			—			—		273

Loans receivable as of December 31, 2017:
Ending balance – total	$	381,130			539,020			972,772			379,978			1,696,107			74,348			—		4,043,355
Unamortized net deferred loan fees																						(986	)
Total loans																					$	4,042,369

Ending balances as of December 31, 2017: Loans
Individually evaluated for impairment	$	579			2,975			14,800			368			8,493			—			—		27,215
Collectively evaluated for impairment	$	379,903			535,638			949,113			379,327			1,675,102			73,892			—		3,992,975
Purchased credit impaired	$	648			407			8,859			283			12,512			456			—		23,165

The following table presents the activity in the allowance for loan losses for the year ended December 31, 2016. There were no covered loans at December 31, 2016 and all reserves associated with previously covered loans were transferred to the non-covered allowance.

($ in thousands)	Commercial, Financial, and Agricultural			Real Estate – Construction, Land Development & Other Land Loans			Real Estate – Residential (1-4 Family) First Mortgages			Real Estate – Mortgage – Home Equity Lines of Credit			Real Estate – Mortgage – Commercial and Other			Installment Loans to Individuals			Unallo- cated			Covered			Total

As of and for the year ended December 31, 2016
Beginning balance	$	4,742			3,754			7,832			2,893			5,816			1,051			696			1,799			28,583
Charge-offs		(2,271	)		(1,101	)		(3,815	)		(969	)		(1,005	)		(1,008	)		(1	)		(244	)		(10,414	)
Recoveries		805			1,422			1,060			250			836			354			—			1,958			6,685
Transfer from covered status		56			65			839			293			127			—			1			(1,381	)		—
Removed due to branch loan sale		(263	)		(39	)		(347	)		(110	)		(228	)		(63	)		—			—			(1,050	)
Provisions		760			(1,410	)		2,135			63			(448	)		811			198			(2,132	)		(23	)
Ending balance	$	3,829			2,691			7,704			2,420			5,098			1,145			894			—			23,781

Ending balances as of December 31, 2016: Allowance for loan losses
Individually evaluated for impairment	$	7			184			1,339			5			105			—			—			—			1,640
Collectively evaluated for impairment	$	3,822			2,507			6,365			2,415			4,993			1,145			894			—			22,141
Purchased credit impaired	$	—			—			—			—			—			—			—			—			—

Loans receivable as of December 31, 2016:
Ending balance – total	$	261,813			354,667			750,679			239,105			1,049,460			55,037			—			—			2,710,761
Unamortized net deferred loan fees																										(49	)
Total loans																									$	2,710,712

Ending balances as of December 31, 2016: Loans
Individually evaluated for impairment	$	644			4,001			20,807			280			6,494			—			—			—			32,226
Collectively evaluated for impairment	$	261,169			350,666			729,872			238,825			1,042,452			55,037			—			—			2,678,021
Purchased credit impaired	$	—			—			—			—			514			—			—			—			514

Schedule of recorded investment in loans by credit quality indicators

The following table presents the Company’s recorded investment in loans by credit quality indicators as of December 31, 2018.

($ in thousands)
	Pass		Special Mention Loans		Classified Accruing Loans		Classified Nonaccrual Loans		Total

Commercial, financial, and agricultural	$	452,373		3,056		459		919		456,807
Real estate – construction, land development & other land loans		509,251		5,668		1,614		2,265		518,798
Real estate – mortgage – residential (1-4 family) first mortgages		1,004,457		12,238		21,113		10,115		1,047,923
Real estate – mortgage – home equity loans / lines of credit		348,792		1,688		6,653		1,685		358,818
Real estate – mortgage – commercial and other		1,750,810		14,484		4,140		7,452		1,776,886
Installment loans to individuals		70,357		231		413		139		71,140
Purchased credit impaired		8,355		5,214		3,824		—		17,393
Total	$	4,144,395		42,579		38,216		22,575		4,247,765
Unamortized net deferred loan costs										1,299
Total loans										4,249,064

The following table presents the Company’s recorded investment in loans by credit quality indicators as of December 31, 2017.

($ in thousands)
	Pass		Special Mention Loans		Classified Accruing Loans		Classified Nonaccrual Loans		Total

Commercial, financial, and agricultural	$	368,658		9,901		922		1,001		380,482
Real estate – construction, land development & other land loans		523,642		7,129		6,020		1,822		538,613
Real estate – mortgage – residential (1-4 family) first mortgages		905,111		16,235		30,366		12,201		963,913
Real estate – mortgage – home equity loans / lines of credit		365,982		3,784		7,405		2,524		379,695
Real estate – mortgage – commercial and other		1,647,725		23,335		9,190		3,345		1,683,595
Installment loans to individuals		73,379		222		216		75		73,892
Purchased credit impaired		6,541		12,309		4,315		—		23,165
Total	$	3,891,038		72,915		58,434		20,968		4,043,355
Unamortized net deferred loan fees										(986	)
Total loans										4,042,369

Schedule of accruing restructured loans that defaulted in the period

Accruing restructured loans that were modified in the previous 12 months and that defaulted during the years ended December 31, 2018 and 2017 are presented in the table below. The Company considers a loan to have defaulted when it becomes 90 or more days delinquent under the modified terms, has been transferred to nonaccrual status, or has been transferred to foreclosed real estate.

($ in thousands)	For the year ended December 31, 2018				For the year ended December 31, 2017
	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment

Accruing TDRs that subsequently defaulted
Real estate – mortgage – residential (1-4 family first mortgages)		1	$	60		2		880
Real estate – mortgage – commercial and other		3		1,333		—		—

Total accruing TDRs that subsequently defaulted		4	$	1,393		2	$	880

Summary of contractually required payments for PCI loans expected at acquisition date

The following table relates to acquired Carolina Bank PCI loans and summarizes the contractually required payments, which includes principal and interest, expected cash flows to be collected, and the fair value of acquired PCI loans at the acquisition date.

($ in thousands)	Carolina Bank Acquisition on March 3, 2017
Contractually required payments	$	27,108
Nonaccretable difference		(4,237	)
Cash flows expected to be collected at acquisition		22,871
Accretable yield		(3,617	)
Fair value of PCI loans at acquisition date	$	19,254

Summary of contractually required payments for purchased non-impaired loans not expected at acquisition date

The following table relates to acquired Asheville Savings Bank purchased non-impaired loans and provides the contractually required payments, fair value, and estimate of contractual cash flows not expected to be collected at the acquisition date.

($ in thousands)	Asheville Savings Bank Acquisition on October 1, 2017
Contractually required payments	$	727,706
Fair value of acquired loans at acquisition date		595,167
Contractual cash flows not expected to be collected		7,000