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Loans and Allowance for Credit Losses | 6 Months Ended
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Jun. 30, 2019
Loans and Leases Receivable Disclosure [Abstract] |
Loans and Allowance for Credit Losses | Loans and Allowance for Credit Losses The following table provides outstanding balances related to each of our loan types:
| June 30, 2019 |  | December 31, 2018
| Originated |  | Acquired |  | Total |  | Originated |  | Acquired |  | Total
| (dollars in thousands)
Commercial, financial, agricultural and other | $ | 1,201,705 |  |  | $ | 34,719 |  |  | $ | 1,236,424 |  |  | $ | 1,100,947 |  |  | $ | 37,526 |  |  | $ | 1,138,473 |
Real estate construction | 435,385 |  |  | 6,469 |  |  | 441,854 |  |  | 353,008 |  |  | 5,970 |  |  | 358,978 |
Residential real estate | 1,350,765 |  |  | 228,676 |  |  | 1,579,441 |  |  | 1,313,645 |  |  | 248,760 |  |  | 1,562,405 |
Commercial real estate | 1,939,608 |  |  | 178,974 |  |  | 2,118,582 |  |  | 1,922,349 |  |  | 201,195 |  |  | 2,123,544 |
Loans to individuals | 622,936 |  |  | 3,822 |  |  | 626,758 |  |  | 585,347 |  |  | 5,392 |  |  | 590,739 |
Total loans | $ | 5,550,399 |  |  | $ | 452,660 |  |  | $ | 6,003,059 |  |  | $ | 5,275,296 |  |  | $ | 498,843 |  |  | $ | 5,774,139 |
Credit Quality Information As part of the on-going monitoring of credit quality within the loan portfolio, the following credit worthiness categories are used in grading our loans:
Pass |  | Acceptable levels of risk exist in the relationship. Includes all loans not classified as OAEM, substandard or doubtful.
Other Assets Especially Mentioned (OAEM) |  | Potential weaknesses that deserve management’s close attention. The potential weaknesses may result in deterioration of the repayment prospects or weaken the Company’s credit position at some future date. The credit risk may be relatively minor, yet constitute an undesirable risk in light of the circumstances surrounding the specific credit. No loss of principal or interest is expected.
Substandard |  | Well-defined weakness or a weakness that jeopardizes the repayment of the debt. A loan may be classified as substandard as a result of deterioration of the borrower’s financial condition and repayment capacity. Loans for which repayment plans have not been met or collateral equity margins do not protect the Company may also be classified as substandard.
Doubtful |  | Loans with the characteristics of substandard loans with the added characteristic that collection or liquidation in full, on the basis of presently existing facts and conditions, is highly improbable.
The use of creditworthiness categories to grade loans permits management’s use of migration analysis to estimate a portion of credit risk. The Company’s internal creditworthiness grading system provides a measurement of credit risk based primarily on an evaluation of the borrower’s cash flow and collateral. Movement between these rating categories provides a predictive measure of credit losses and therefore assists in determining the appropriate level for the loan loss reserves. Category ratings are reviewed each quarter, at which time management analyzes the results, as well as other external statistics and factors related to loan performance. Loans that migrate towards higher risk rating levels generally have an increased risk of default, whereas loans that migrate toward lower risk ratings generally will result in a lower risk factor being applied to those related loan balances. The following tables represent our credit risk profile by creditworthiness:
| June 30, 2019
| Commercial, financial, agricultural and other |  | Real estate construction |  | Residential real estate |  | Commercial real estate |  | Loans to individuals |  | Total
| (dollars in thousands)
Originated loans |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 1,154,497 |  |  | $ | 435,356 |  |  | $ | 1,340,786 |  |  | $ | 1,893,994 |  |  | $ | 622,677 |  |  | $ | 5,447,310 |
Non-Pass |  |  |  |  |  |  |  |  |  |  |
OAEM | 40,460 |  |  | 29 |  |  | 684 |  |  | 22,850 |  |  | — |  |  | 64,023 |
Substandard | 6,748 |  |  | — |  |  | 9,295 |  |  | 22,764 |  |  | 259 |  |  | 39,066 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Non-Pass | 47,208 |  |  | 29 |  |  | 9,979 |  |  | 45,614 |  |  | 259 |  |  | 103,089 |
Total | $ | 1,201,705 |  |  | $ | 435,385 |  |  | $ | 1,350,765 |  |  | $ | 1,939,608 |  |  | $ | 622,936 |  |  | $ | 5,550,399 |
Acquired loans |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 29,199 |  |  | $ | 5,864 |  |  | $ | 226,003 |  |  | $ | 172,898 |  |  | $ | 3,809 |  |  | $ | 437,773 |
Non-Pass |  |  |  |  |  |  |  |  |  |  |
OAEM | 762 |  |  | 605 |  |  | 647 |  |  | 1,964 |  |  | — |  |  | 3,978 |
Substandard | 4,758 |  |  | — |  |  | 2,026 |  |  | 4,112 |  |  | 13 |  |  | 10,909 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Non-Pass | 5,520 |  |  | 605 |  |  | 2,673 |  |  | 6,076 |  |  | 13 |  |  | 14,887 |
Total | $ | 34,719 |  |  | $ | 6,469 |  |  | $ | 228,676 |  |  | $ | 178,974 |  |  | $ | 3,822 |  |  | $ | 452,660 |
| December 31, 2018
| Commercial, financial, agricultural and other |  | Real estate construction |  | Residential real estate |  | Commercial real estate |  | Loans to individuals |  | Total
| (dollars in thousands)
Originated loans |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 1,055,394 |  |  | $ | 337,367 |  |  | $ | 1,302,912 |  |  | $ | 1,880,139 |  |  | $ | 585,141 |  |  | $ | 5,160,953 |
Non-Pass |  |  |  |  |  |  |  |  |  |  |
OAEM | 33,723 |  |  | 15,641 |  |  | 1,026 |  |  | 28,904 |  |  | — |  |  | 79,294 |
Substandard | 11,830 |  |  | — |  |  | 9,707 |  |  | 13,306 |  |  | 206 |  |  | 35,049 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Non-Pass | 45,553 |  |  | 15,641 |  |  | 10,733 |  |  | 42,210 |  |  | 206 |  |  | 114,343 |
Total | $ | 1,100,947 |  |  | $ | 353,008 |  |  | $ | 1,313,645 |  |  | $ | 1,922,349 |  |  | $ | 585,347 |  |  | $ | 5,275,296 |
Acquired loans |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 31,399 |  |  | $ | 5,337 |  |  | $ | 245,637 |  |  | $ | 198,201 |  |  | $ | 5,377 |  |  | $ | 485,951 |
Non-Pass |  |  |  |  |  |  |  |  |  |  |
OAEM | 5,890 |  |  | 633 |  |  | 736 |  |  | 441 |  |  | — |  |  | 7,700 |
Substandard | 237 |  |  | — |  |  | 2,387 |  |  | 2,553 |  |  | 15 |  |  | 5,192 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Non-Pass | 6,127 |  |  | 633 |  |  | 3,123 |  |  | 2,994 |  |  | 15 |  |  | 12,892 |
Total | $ | 37,526 |  |  | $ | 5,970 |  |  | $ | 248,760 |  |  | $ | 201,195 |  |  | $ | 5,392 |  |  | $ | 498,843 |
Portfolio Risks The credit quality of our loan portfolio can potentially represent significant risk to our earnings, capital and liquidity. First Commonwealth devotes substantial resources to managing this risk primarily through our credit administration department that develops and administers policies and procedures for underwriting, maintaining, monitoring and collecting loans. Credit administration is independent of lending departments and oversight is provided by the Credit Committee of the First Commonwealth Board of Directors. Criticized loans have been evaluated when determining the appropriateness of the allowance for credit losses, which we believe is adequate to absorb losses inherent to the portfolio as of June 30, 2019. However, changes in economic conditions, interest rates, borrower financial condition, delinquency trends or previously established fair values of collateral factors could significantly change those judgmental estimates. Age Analysis of Past Due Loans by Segment The following tables delineate the aging analysis of the recorded investments in past due loans as of June 30, 2019 and December 31, 2018. Also included in these tables are loans that are 90 days or more past due and still accruing because they are well-secured and in the process of collection.
| June 30, 2019
| 30 - 59 days past due |  | 60 - 89 days past due |  | 90 days or greater and still accruing |  | Nonaccrual |  | Total past due and nonaccrual |  | Current |  | Total
| (dollars in thousands)
Originated loans |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, agricultural and other | $ | 485 |  |  | $ | 39 |  |  | $ | 79 |  |  | $ | 5,555 |  |  | $ | 6,158 |  |  | $ | 1,195,547 |  |  | $ | 1,201,705 |
Real estate construction | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 435,385 |  |  | 435,385 |
Residential real estate | 2,874 |  |  | 1,077 |  |  | 1,590 |  |  | 5,701 |  |  | 11,242 |  |  | 1,339,523 |  |  | 1,350,765 |
Commercial real estate | 734 |  |  | 717 |  |  | 191 |  |  | 8,141 |  |  | 9,783 |  |  | 1,929,825 |  |  | 1,939,608 |
Loans to individuals | 2,657 |  |  | 880 |  |  | 631 |  |  | 259 |  |  | 4,427 |  |  | 618,509 |  |  | 622,936 |
Total | $ | 6,750 |  |  | $ | 2,713 |  |  | $ | 2,491 |  |  | $ | 19,656 |  |  | $ | 31,610 |  |  | $ | 5,518,789 |  |  | $ | 5,550,399 |
Acquired loans |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, agricultural and other | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 4,718 |  |  | $ | 4,718 |  |  | $ | 30,001 |  |  | $ | 34,719 |
Real estate construction | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,469 |  |  | 6,469 |
Residential real estate | 295 |  |  | 59 |  |  | 143 |  |  | 1,782 |  |  | 2,279 |  |  | 226,397 |  |  | 228,676 |
Commercial real estate | 133 |  |  | 46 |  |  | — |  |  | 410 |  |  | 589 |  |  | 178,385 |  |  | 178,974 |
Loans to individuals | 28 |  |  | 6 |  |  | 22 |  |  | 13 |  |  | 69 |  |  | 3,753 |  |  | 3,822 |
Total | $ | 456 |  |  | $ | 111 |  |  | $ | 165 |  |  | $ | 6,923 |  |  | $ | 7,655 |  |  | $ | 445,005 |  |  | $ | 452,660 |
| December 31, 2018
| 30 - 59 days past due |  | 60 - 89 days past due |  | 90 days or greater and still accruing |  | Nonaccrual |  | Total past due and nonaccrual |  | Current |  | Total
| (dollars in thousands)
Originated loans |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, agricultural and other | $ | 130 |  |  | $ | 247 |  |  | $ | 92 |  |  | $ | 10,223 |  |  | $ | 10,692 |  |  | $ | 1,090,255 |  |  | $ | 1,100,947 |
Real estate construction | 212 |  |  | — |  |  | — |  |  | — |  |  | 212 |  |  | 352,796 |  |  | 353,008 |
Residential real estate | 3,697 |  |  | 710 |  |  | 790 |  |  | 6,238 |  |  | 11,435 |  |  | 1,302,210 |  |  | 1,313,645 |
Commercial real estate | 492 |  |  | 69 |  |  | — |  |  | 3,437 |  |  | 3,998 |  |  | 1,918,351 |  |  | 1,922,349 |
Loans to individuals | 2,362 |  |  | 532 |  |  | 662 |  |  | 207 |  |  | 3,763 |  |  | 581,584 |  |  | 585,347 |
Total | $ | 6,893 |  |  | $ | 1,558 |  |  | $ | 1,544 |  |  | $ | 20,105 |  |  | $ | 30,100 |  |  | $ | 5,245,196 |  |  | $ | 5,275,296 |
Acquired loans |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, agricultural and other | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | 204 |  |  | $ | 205 |  |  | $ | 37,321 |  |  | $ | 37,526 |
Real estate construction | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 5,970 |  |  | 5,970 |
Residential real estate | 226 |  |  | 24 |  |  | 27 |  |  | 1,904 |  |  | 2,181 |  |  | 246,579 |  |  | 248,760 |
Commercial real estate | — |  |  | — |  |  | — |  |  | 1,042 |  |  | 1,042 |  |  | 200,153 |  |  | 201,195 |
Loans to individuals | 46 |  |  | 12 |  |  | 11 |  |  | 15 |  |  | 84 |  |  | 5,308 |  |  | 5,392 |
Total | $ | 273 |  |  | $ | 36 |  |  | $ | 38 |  |  | $ | 3,165 |  |  | $ | 3,512 |  |  | $ | 495,331 |  |  | $ | 498,843 |
Nonaccrual Loans The previous tables summarize nonaccrual loans by loan segment. The Company generally places loans on nonaccrual status when the full and timely collection of interest or principal becomes uncertain, when part of the principal balance has been charged off and no restructuring has occurred, or the loans reach a certain number of days past due. Generally, loans 90 days or more past due are placed on nonaccrual status, except for consumer loans, which are placed on nonaccrual status at 150 days past due. When a loan is placed on nonaccrual, the accrued unpaid interest receivable is reversed against interest income and all future payments received are applied as a reduction to the loan principal. Generally, the loan is returned to accrual status when (a) all delinquent interest and principal becomes current under the terms of the loan agreement or (b) the loan is both well-secured and in the process of collection and collectability is no longer in doubt. Impaired Loans Management considers loans to be impaired when, based on current information and events, it is determined that the Company will not be able to collect all amounts due according to the loan contract, including scheduled interest payments. Determination of impairment is treated the same across all loan categories. When management identifies a loan as impaired, the impairment is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the sole source for repayment of the loan is the operation or liquidation of collateral. When the loan is collateral dependent, the appraised value less estimated cost to sell is utilized. If management determines the value of the impaired loan is less than the recorded investment in the loan, impairment is recognized through an allowance estimate or a charge-off to the allowance. Troubled debt restructured loans on accrual status are also considered to be impaired loans. Troubled debt restructured loans are those loans whose terms have been renegotiated to provide a reduction or deferral of principal or interest as a result of the financial difficulties experienced by the borrower, who could not obtain comparable terms from alternate financing sources. When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan is not in doubt and the loan is on nonaccrual status, contractual interest is credited to interest income when received under the cash basis method. At June 30, 2019 and December 31, 2018, there were no impaired loans held for sale. During the six months ended, June 30, 2019, there were $0.4 million gains recognized on the sale of an impaired commercial real estate loan. There were gains of $1.2 million recognized on the sale of an impaired commercial, financial, agricultural and other relationship during the six months ended June 30, 2018. The following tables include the recorded investment and unpaid principal balance for impaired loans with the associated allowance amount, if applicable, as of June 30, 2019 and December 31, 2018. Also presented are the average recorded investment in impaired loans and the related amount of interest recognized while the loan was considered impaired. Average balances are calculated using month-end balances of the loans for the period reported and are included in the table below based on their period-end allowance position.
| June 30, 2019 |  | December 31, 2018
| Recorded investment |  | Unpaid principal balance |  | Related allowance |  | Recorded investment |  | Unpaid principal balance |  | Related allowance
| (dollars in thousands)
Originated loans: |  |  |  |  |  |  |  |  |  |  |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, agricultural and other | $ | 2,767 |  |  | $ | 7,828 |  |  |  |  |  | $ | 8,735 |  |  | $ | 16,442 |  |  |  |
Real estate construction | — |  |  | — |  |  |  |  |  | — |  |  | — |  |  |  |
Residential real estate | 10,092 |  |  | 11,735 |  |  |  |  |  | 10,726 |  |  | 12,571 |  |  |  |
Commercial real estate | 3,042 |  |  | 3,265 |  |  |  |  |  | 3,599 |  |  | 3,812 |  |  |  |
Loans to individuals | 361 |  |  | 550 |  |  |  |  |  | 281 |  |  | 408 |  |  |  |
Subtotal | 16,262 |  |  | 23,378 |  |  |  |  |  | 23,341 |  |  | 33,233 |  |  |  |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, agricultural and other | 4,195 |  |  | 5,886 |  |  | $ | 1,330 |  |  | 3,042 |  |  | 3,181 |  |  | $ | 797 |
Real estate construction | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Residential real estate | 761 |  |  | 760 |  |  | 87 |  |  | 486 |  |  | 495 |  |  | 107 |
Commercial real estate | 7,256 |  |  | 7,347 |  |  | 1,088 |  |  | 1,866 |  |  | 1,878 |  |  | 596 |
Loans to individuals | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Subtotal | 12,212 |  |  | 13,993 |  |  | 2,505 |  |  | 5,394 |  |  | 5,554 |  |  | 1,500 |
Total | $ | 28,474 |  |  | $ | 37,371 |  |  | $ | 2,505 |  |  | $ | 28,735 |  |  | $ | 38,787 |  |  | $ | 1,500 |
| June 30, 2019 |  | December 31, 2018
| Recorded investment |  | Unpaid principal balance |  | Related allowance |  | Recorded investment |  | Unpaid principal balance |  | Related allowance
| (dollars in thousands)
Acquired loans |  |  |  |  |  |  |  |  |  |  |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, agricultural and other | $ | 4,718 |  |  | $ | 4,718 |  |  |  |  | $ | 73 |  |  | $ | 73 |  |  |
Real estate construction | — |  |  | — |  |  |  |  | — |  |  | — |  |  |
Residential real estate | 1,939 |  |  | 2,391 |  |  |  |  | 2,031 |  |  | 2,604 |  |  |
Commercial real estate | 251 |  |  | 276 |  |  |  |  | 1,042 |  |  | 2,052 |  |  |
Loans to individuals | 13 |  |  | 15 |  |  |  |  | 15 |  |  | 17 |  |  |
Subtotal | 6,921 |  |  | 7,400 |  |  |  |  | 3,161 |  |  | 4,746 |  |  |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, agricultural and other | — |  |  | — |  |  | $ | — |  |  | 131 |  |  | 131 |  |  | $ | 131 |
Real estate construction | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Residential real estate | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial real estate | 159 |  |  | 172 |  |  | 25 |  |  | — |  |  | — |  |  | — |
Loans to individuals | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Subtotal | 159 |  |  | 172 |  |  | 25 |  |  | 131 |  |  | 131 |  |  | 131 |
Total | $ | 7,080 |  |  | $ | 7,572 |  |  | $ | 25 |  |  | $ | 3,292 |  |  | $ | 4,877 |  |  | $ | 131 |
| For the Six Months Ended June 30,
| 2019 |  | 2018
| Originated Loans |  | Acquired Loans |  | Originated Loans |  | Acquired Loans
| Average recorded investment |  | Interest income recognized |  | Average recorded investment |  | Interest income recognized |  | Average recorded investment |  | Interest income recognized |  | Average recorded investment |  | Interest income recognized
| (dollars in thousands)
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, agricultural and other | $ | 2,216 |  |  | $ | 7 |  |  | $ | 1,035 |  |  | $ | — |  |  | $ | 8,034 |  |  | $ | 528 |  |  | $ | 355 |  |  | $ | — |
Real estate construction | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Residential real estate | 10,577 |  |  | 186 |  |  | 1,975 |  |  | 5 |  |  | 10,316 |  |  | 125 |  |  | 1,366 |  |  | 1 |
Commercial real estate | 3,256 |  |  | 101 |  |  | 620 |  |  | 18 |  |  | 6,076 |  |  | 54 |  |  | 1,359 |  |  | — |
Loans to individuals | 340 |  |  | 7 |  |  | 14 |  |  | — |  |  | 322 |  |  | 4 |  |  | 17 |  |  | — |
Subtotal | 16,389 |  |  | 301 |  |  | 3,644 |  |  | 23 |  |  | 24,748 |  |  | 711 |  |  | 3,097 |  |  | 1 |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, agricultural and other | 3,784 |  |  | 30 |  |  | — |  |  | — |  |  | 19,694 |  |  | 52 |  |  | — |  |  | — |
Real estate construction | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Residential real estate | 571 |  |  | 12 |  |  | — |  |  | — |  |  | 845 |  |  | 9 |  |  | 32 |  |  | — |
Commercial real estate | 5,550 |  |  | 2 |  |  | 162 |  |  | — |  |  | 2,477 |  |  | 35 |  |  | — |  |  | — |
Loans to individuals | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Subtotal | 9,905 |  |  | 44 |  |  | 162 |  |  | — |  |  | 23,016 |  |  | 96 |  |  | 32 |  |  | — |
Total | $ | 26,294 |  |  | $ | 345 |  |  | $ | 3,806 |  |  | $ | 23 |  |  | $ | 47,764 |  |  | $ | 807 |  |  | $ | 3,129 |  |  | $ | 1 |
| For the Three Months Ended June 30,
| 2019 |  | 2018
| Originated Loans |  | Acquired Loans |  | Originated Loans |  | Acquired Loans
| Average recorded investment |  | Interest Income Recognized |  | Average recorded investment |  | Interest Income Recognized |  | Average recorded investment |  | Interest Income Recognized |  | Average recorded investment |  | Interest Income Recognized
| (dollars in thousands)
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, agricultural and other | $ | 2,268 |  |  | $ | 5 |  |  | $ | 1,630 |  |  | $ | — |  |  | $ | 6,793 |  |  | $ | 481 |  |  | $ | 299 |  |  | $ | — |
Real estate construction | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Residential real estate | 10,242 |  |  | 115 |  |  | 1,969 |  |  | 4 |  |  | 10,334 |  |  | 64 |  |  | 1,962 |  |  | 1 |
Commercial real estate | 3,034 |  |  | 65 |  |  | 423 |  |  | 17 |  |  | 6,086 |  |  | 23 |  |  | 1,692 |  |  | — |
Loans to individuals | 357 |  |  | 5 |  |  | 14 |  |  | — |  |  | 292 |  |  | 3 |  |  | 16 |  |  | — |
Subtotal | 15,901 |  |  | 190 |  |  | 4,036 |  |  | 21 |  |  | 23,505 |  |  | 571 |  |  | 3,969 |  |  | 1 |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, agricultural and other | 3,957 |  |  | 16 |  |  | — |  |  | — |  |  | 22,812 |  |  | 23 |  |  | — |  |  | — |
Real estate construction | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Residential real estate | 653 |  |  | 7 |  |  | — |  |  | — |  |  | 880 |  |  | 5 |  |  | 65 |  |  | — |
Commercial real estate | 7,304 |  |  | 1 |  |  | 161 |  |  | — |  |  | 3,551 |  |  | 34 |  |  | — |  |  | — |
Loans to individuals | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Subtotal | 11,914 |  |  | 24 |  |  | 161 |  |  | — |  |  | 27,243 |  |  | 62 |  |  | 65 |  |  | — |
Total | $ | 27,815 |  |  | $ | 214 |  |  | $ | 4,197 |  |  | $ | 21 |  |  | $ | 50,748 |  |  | $ | 633 |  |  | $ | 4,034 |  |  | $ | 1 |
Unfunded commitments related to nonperforming loans were $0.3 million at June 30, 2019 and $1.6 million at December 31, 2018. After consideration of the requirements to draw and available collateral related to these commitments, a reserve of $12 thousand was established for these off balance sheet exposures at both June 30, 2019 and December 31, 2018. The following table provides detail as to the total troubled debt restructured loans and total commitments outstanding on troubled debt restructured loans:
| June 30, 2019 |  | December 31, 2018
| (dollars in thousands)
Troubled debt restructured loans |  |  |
Accrual status | $ | 8,975 |  |  | $ | 8,757 |
Nonaccrual status | 10,914 |  |  | 11,761 |
Total | $ | 19,889 |  |  | $ | 20,518 |
Commitments |  |  |
Letters of credit | $ | 60 |  |  | $ | 60 |
Unused lines of credit | 148 |  |  | 1,027 |
Total | $ | 208 |  |  | $ | 1,087 |
The following tables provide detail, including specific reserves and reasons for modification, related to loans identified as troubled debt restructurings:
| For the Six Months Ended June 30, 2019
|  |  | Type of Modification |  |  |  |  |  |
| Number of Contracts |  | Extend Maturity |  | Modify Rate |  | Modify Payments |  | Total Pre-Modification Outstanding Recorded Investment |  | Post- Modification Outstanding Recorded Investment |  | Specific Reserve
| (dollars in thousands)
Commercial, financial, agricultural and other | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | 61 |  |  | $ | 61 |  |  | $ | 62 |  |  | $ | — |
Real estate construction | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Residential real estate | 11 |  |  | 17 |  |  | 117 |  |  | 788 |  |  | 922 |  |  | 897 |  |  | 37 |
Commercial real estate | 3 |  |  | — |  |  | — |  |  | 6,119 |  |  | 6,119 |  |  | 5,854 |  |  | 969 |
Loans to individuals | 5 |  |  | — |  |  | — |  |  | 62 |  |  | 62 |  |  | 56 |  |  | — |
Total | 20 |  |  | $ | 17 |  |  | $ | 117 |  |  | $ | 7,030 |  |  | $ | 7,164 |  |  | $ | 6,869 |  |  | $ | 1,006 |
| For the Six Months Ended June 30, 2018
|  |  | Type of Modification |  |  |  |  |  |
| Number of Contracts |  | Extend Maturity |  | Modify Rate |  | Modify Payments |  | Total Pre-Modification Outstanding Recorded Investment |  | Post- Modification Outstanding Recorded Investment |  | Specific Reserve
| (dollars in thousands)
Commercial, financial, agricultural and other | 8 |  |  | $ | 4,710 |  |  | $ | — |  |  | $ | 11,679 |  |  | $ | 16,389 |  |  | $ | 11,972 |  |  | $ | 4,095 |
Residential real estate | 17 |  |  | 20 |  |  | 75 |  |  | 729 |  |  | 824 |  |  | 779 |  |  | — |
Commercial real estate | 3 |  |  | 3,017 |  |  | — |  |  | 966 |  |  | 3,983 |  |  | 3,870 |  |  | 206 |
Loans to individuals | 7 |  |  | — |  |  | 52 |  |  | 26 |  |  | 78 |  |  | 69 |  |  | — |
Total | 35 |  |  | $ | 7,747 |  |  | $ | 127 |  |  | $ | 13,400 |  |  | $ | 21,274 |  |  | $ | 16,690 |  |  | $ | 4,301 |
The troubled debt restructurings included in the above tables are also included in the impaired loan tables provided earlier in this note. Loans defined as modified due to a change in rate may include loans that were modified for a change in rate as well as a re-amortization of the principal and an extension of the maturity. For both the six months ended June 30, 2019 and 2018, $0.1 million of total rate modifications represent loans with modifications to the rate as well as payment as a result of re-amortization. For both 2019 and 2018 the changes in loan balances between the pre-modification balance and the post-modification balance are due to customer payments. The following tables provide detail, including specific reserves and reasons for modification, related to loans identified as troubled debt restructurings:
| For the Three Months Ended June 30, 2019
|  |  | Type of Modification |  |  |  |  |  |
| Number of Contracts |  | Extend Maturity |  | Modify Rate |  | Modify Payments |  | Total Pre-Modification Outstanding Recorded Investment |  | Post- Modification Outstanding Recorded Investment |  | Specific Reserve
| (dollars in thousands)
Commercial, financial, agricultural and other | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Real estate construction | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Residential real estate | 5 |  |  | — |  |  | 68 |  |  | 273 |  |  | 341 |  |  | 337 |  |  | — |
Commercial real estate | 2 |  |  | — |  |  | — |  |  | 5,878 |  |  | 5,878 |  |  | 5,613 |  |  | 969 |
Loans to individuals | 3 |  |  | — |  |  | — |  |  | 14 |  |  | 14 |  |  | 14 |  |  | — |
Total | 10 |  |  | $ | — |  |  | $ | 68 |  |  | $ | 6,165 |  |  | $ | 6,233 |  |  | $ | 5,964 |  |  | $ | 969 |
| For the Three Months Ended, June 30, 2018
|  |  | Type of Modification |  |  |  |  |  |
| Number of Contracts |  | Extend Maturity |  | Modify Rate |  | Modify Payments |  | Total Pre-Modification Outstanding Recorded Investment |  | Post- Modification Outstanding Recorded Investment |  | Specific Reserve
| (dollars in thousands)
Commercial, financial, agricultural and other | 7 |  |  | $ | — |  |  | $ | — |  |  | $ | 11,679 |  |  | $ | 11,679 |  |  | $ | 11,591 |  |  | $ | 3,714 |
Residential real estate | 6 |  |  | — |  |  | — |  |  | 383 |  |  | 383 |  |  | 381 |  |  | — |
Commercial real estate | 2 |  |  | — |  |  | — |  |  | 966 |  |  | 966 |  |  | 960 |  |  | — |
Loans to individuals | 4 |  |  | — |  |  | 24 |  |  | 14 |  |  | 38 |  |  | 35 |  |  | — |
Total | 19 |  |  | $ | — |  |  | $ | 24 |  |  | $ | 13,042 |  |  | $ | 13,066 |  |  | $ | 12,967 |  |  | $ | 3,714 |
The troubled debt restructurings included in the above tables are also included in the impaired loan tables provided earlier in this note. Loans defined as modified due to a change in rate may include loans that were modified for a change in rate as well as a re-amortization of the principal and an extension of the maturity. For the three months ended June 30, 2019 and 2018, $68 thousand and $24 thousand, respectively, of total rate modifications represent loans with modifications to the rate as well as payment as a result of re-amortization. For both 2019 and 2018 the changes in loan balances between the pre-modification balance and the post-modification balance are due to customer payments. A troubled debt restructuring is considered to be in default when a restructured loan is 90 days or more past due. The following table provides information related to loans that were restructured within the past twelve months and that were considered to be in default during the six months ended June 30:
| 2019 |  | 2018
| Number of Contracts |  | Recorded Investment |  | Number of Contracts |  | Recorded Investment
| (dollars in thousands)
Commercial, financial, agricultural and other | — |  |  | $ | — |  |  | 1 |  |  | $ | 302 |
Residential real estate | 1 |  |  | 22 |  |  | — |  |  | — |
Loans to individuals | 1 |  |  | 10 |  |  | — |  |  | — |
Total | 2 |  |  | $ | 32 |  |  | 1 |  |  | $ | 302 |
The following table provides information related to loans that were restructured within the past twelve months and that were considered to be in default during the three months ended June 30:
| 2019 |  | 2018
| Number of Contracts |  | Recorded Investment |  | Number of Contracts |  | Recorded Investment
| (dollars in thousands)
Residential real estate | 1 |  |  | $ | 22 |  |  | — |  |  | $ | — |
Total | 1 |  |  | $ | 22 |  |  | — |  |  | $ | — |
The following tables provide detail related to the allowance for credit losses:
| For the Six Months Ended June 30, 2019
| Commercial, financial, agricultural and other |  | Real estate construction |  | Residential real estate |  | Commercial real estate |  | Loans to individuals |  | Total
| (dollars in thousands)
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |
Originated loans: |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 19,235 |  |  | $ | 2,002 |  |  | $ | 3,934 |  |  | $ | 18,382 |  |  | $ | 4,033 |  |  | $ | 47,586 |
Charge-offs | (842 | ) |  | — |  |  | (234 | ) |  | (299 | ) |  | (2,478 | ) |  | (3,853 | )
Recoveries | 139 |  |  | 84 |  |  | 184 |  |  | 79 |  |  | 257 |  |  | 743 |
Provision (credit) | 2,146 |  |  | 405 |  |  | 249 |  |  | 1,125 |  |  | 2,595 |  |  | 6,520 |
Ending balance | 20,678 |  |  | 2,491 |  |  | 4,133 |  |  | 19,287 |  |  | 4,407 |  |  | 50,996 |
Acquired loans: |  |  |  |  |  |  |  |  |  |  |
Beginning balance | 139 |  |  | — |  |  | 35 |  |  | 4 |  |  | — |  |  | 178 |
Charge-offs | (552 | ) |  | — |  |  | (46 | ) |  | — |  |  | (6 | ) |  | (604 | )
Recoveries | 32 |  |  | — |  |  | 35 |  |  | — |  |  | 14 |  |  | 81 |
Provision (credit) | 396 |  |  | — |  |  | 1 |  |  | 21 |  |  | (8 | ) |  | 410 |
Ending balance | 15 |  |  | — |  |  | 25 |  |  | 25 |  |  | — |  |  | 65 |
Total ending balance | $ | 20,693 |  |  | $ | 2,491 |  |  | $ | 4,158 |  |  | $ | 19,312 |  |  | $ | 4,407 |  |  | $ | 51,061 |
Ending balance: individually evaluated for impairment | $ | 1,330 |  |  | $ | — |  |  | $ | 87 |  |  | $ | 1,113 |  |  | $ | — |  |  | $ | 2,530 |
Ending balance: collectively evaluated for impairment | 19,363 |  |  | 2,491 |  |  | 4,071 |  |  | 18,199 |  |  | 4,407 |  |  | 48,531 |
Loans: |  |  |  |  |  |  |  |  |  |  |
Ending balance | 1,236,424 |  |  | 441,854 |  |  | 1,579,441 |  |  | 2,118,582 |  |  | 626,758 |  |  | 6,003,059 |
Ending balance: individually evaluated for impairment | 11,206 |  |  | — |  |  | 4,065 |  |  | 10,216 |  |  | — |  |  | 25,487 |
Ending balance: collectively evaluated for impairment | 1,225,218 |  |  | 441,854 |  |  | 1,575,376 |  |  | 2,108,366 |  |  | 626,758 |  |  | 5,977,572 |
| For the Six Months Ended June 30, 2018
| Commercial, financial, agricultural and other |  | Real estate construction |  | Residential real estate |  | Commercial real estate |  | Loans to individuals |  | Total
| (dollars in thousands)
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |
Originated loans: |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 23,418 |  |  | $ | 1,349 |  |  | $ | 2,753 |  |  | $ | 17,328 |  |  | $ | 3,404 |  |  | $ | 48,252 |
Charge-offs | (861 | ) |  | — |  |  | (681 | ) |  | (2,411 | ) |  | (2,245 | ) |  | (6,198 | )
Recoveries | 618 |  |  | 1 |  |  | 196 |  |  | 87 |  |  | 307 |  |  | 1,209 |
Provision (credit) | 1,907 |  |  | (88 | ) |  | 1,288 |  |  | 2,727 |  |  | 2,061 |  |  | 7,895 |
Ending balance | 25,082 |  |  | 1,262 |  |  | 3,556 |  |  | 17,731 |  |  | 3,527 |  |  | 51,158 |
Acquired loans: |  |  |  |  |  |  |  |  |  |  |
Beginning balance | 11 |  |  | — |  |  | 6 |  |  | 29 |  |  | — |  |  | 46 |
Charge-offs | (93 | ) |  | — |  |  | (48 | ) |  | — |  |  | (11 | ) |  | (152 | )
Recoveries | 18 |  |  | 6 |  |  | 50 |  |  | — |  |  | 12 |  |  | 86 |
Provision (credit) | 87 |  |  | (6 | ) |  | 119 |  |  | (23 | ) |  | (1 | ) |  | 176 |
Ending balance | 23 |  |  | — |  |  | 127 |  |  | 6 |  |  | — |  |  | 156 |
Total ending balance | $ | 25,105 |  |  | $ | 1,262 |  |  | $ | 3,683 |  |  | $ | 17,737 |  |  | $ | 3,527 |  |  | $ | 51,314 |
Ending balance: individually evaluated for impairment | $ | 6,597 |  |  | $ | — |  |  | $ | 342 |  |  | $ | 662 |  |  | $ | — |  |  | $ | 7,601 |
Ending balance: collectively evaluated for impairment | 18,508 |  |  | 1,262 |  |  | 3,341 |  |  | 17,075 |  |  | 3,527 |  |  | 43,713 |
Loans: |  |  |  |  |  |  |  |  |  |  |
Ending balance | 1,130,638 |  |  | 259,825 |  |  | 1,518,850 |  |  | 2,172,615 |  |  | 558,178 |  |  | 5,640,106 |
Ending balance: individually evaluated for impairment | 21,087 |  |  | — |  |  | 5,175 |  |  | 9,037 |  |  | — |  |  | 35,299 |
Ending balance: collectively evaluated for impairment | 1,109,551 |  |  | 259,825 |  |  | 1,513,675 |  |  | 2,163,578 |  |  | 558,178 |  |  | 5,604,807 |
| For the Three Months Ended June 30, 2019
| Commercial, financial, agricultural and other |  | Real estate construction |  | Residential real estate |  | Commercial real estate |  | Loans to individuals |  | Total
| (dollars in thousands)
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |
Originated loans: |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 19,815 |  |  | $ | 2,254 |  |  | $ | 4,150 |  |  | $ | 19,218 |  |  | $ | 4,163 |  |  | $ | 49,600 |
Charge-offs | (359 | ) |  | — |  |  | (98 | ) |  | — |  |  | (1,368 | ) |  | (1,825 | )
Recoveries | 63 |  |  | 42 |  |  | 103 |  |  | 38 |  |  | 143 |  |  | 389 |
Provision (credit) | 1,159 |  |  | 195 |  |  | (22 | ) |  | 31 |  |  | 1,469 |  |  | 2,832 |
Ending balance | 20,678 |  |  | 2,491 |  |  | 4,133 |  |  | 19,287 |  |  | 4,407 |  |  | 50,996 |
Acquired loans: |  |  |  |  |  |  |  |  |  |  |
Beginning balance | 18 |  |  | — |  |  | 35 |  |  | — |  |  | — |  |  | 53 |
Charge-offs | (26 | ) |  | — |  |  | (1 | ) |  | — |  |  | (1 | ) |  | (28 | )
Recoveries | 21 |  |  | — |  |  | 11 |  |  | — |  |  | 5 |  |  | 37 |
Provision (credit) | 2 |  |  | — |  |  | (20 | ) |  | 25 |  |  | (4 | ) |  | 3 |
Ending balance | 15 |  |  | — |  |  | 25 |  |  | 25 |  |  | — |  |  | 65 |
Total ending balance | $ | 20,693 |  |  | $ | 2,491 |  |  | $ | 4,158 |  |  | $ | 19,312 |  |  | $ | 4,407 |  |  | $ | 51,061 |
| For the Three Months Ended, June 30, 2018
| Commercial, financial, agricultural and other |  | Real estate construction |  | Residential real estate |  | Commercial real estate |  | Loans to individuals |  | Total
| (dollars in thousands)
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |
Originated loans: |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 27,532 |  |  | $ | 1,114 |  |  | $ | 3,141 |  |  | $ | 18,494 |  |  | $ | 3,416 |  |  | $ | 53,697 |
Charge-offs | (571 | ) |  | — |  |  | (226 | ) |  | (2,243 | ) |  | (1,076 | ) |  | (4,116 | )
Recoveries | 362 |  |  | — |  |  | 121 |  |  | 18 |  |  | 112 |  |  | 613 |
Provision (credit) | (2,241 | ) |  | 148 |  |  | 520 |  |  | 1,462 |  |  | 1,075 |  |  | 964 |
Ending balance | 25,082 |  |  | 1,262 |  |  | 3,556 |  |  | 17,731 |  |  | 3,527 |  |  | 51,158 |
Acquired loans: |  |  |  |  |  |  |  |  |  |  |
Beginning balance | 20 |  |  | — |  |  | 13 |  |  | 2 |  |  | — |  |  | 35 |
Charge-offs | (93 | ) |  | — |  |  | (32 | ) |  | — |  |  | (7 | ) |  | (132 | )
Recoveries | 11 |  |  | — |  |  | 33 |  |  | — |  |  | 5 |  |  | 49 |
Provision (credit) | 85 |  |  | — |  |  | 113 |  |  | 4 |  |  | 2 |  |  | 204 |
Ending balance | 23 |  |  | — |  |  | 127 |  |  | 6 |  |  | — |  |  | 156 |
Total ending balance | $ | 25,105 |  |  | $ | 1,262 |  |  | $ | 3,683 |  |  | $ | 17,737 |  |  | $ | 3,527 |  |  | $ | 51,314 |

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 + Details
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