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LOAN PERFORMANCE

6 Months Ended

Jun. 30, 2020

NOTE 5: LOAN PERFORMANCE

The following is an aging analysis of the Company’s past due loans, segregated by loan class, as of the dates shown below:


					90 days or								90 days
	30 to 59 days		60 to 89 days		greater		Total		Total				past due and
(Dollars in thousands)	past due		past due		past due		past due		current loans		Total loans		still accruing
June 30, 2020
Commercial and industrial	$	1,256	$	—	$	57	$	1,313	$	836,354	$	837,667	$	—
Real estate:
Commercial real estate		—		—		—		—		908,027		908,027		—
Construction and development		386		—		—		386		552,493		552,879		—
1-4 family residential		146		—		—		146		272,107		272,253		—
Multi-family residential		—		—		—		—		255,273		255,273		—
Consumer		14		—		—		14		36,324		36,338		—
Agriculture		27		—		—		27		7,768		7,795		—
Other		3,500		—		—		3,500		74,035		77,535
Total loans	$	5,329	$	—	$	57	$	5,386	$	2,942,381	$	2,947,767	$	—

December 31, 2019
Commercial and industrial	$	664	$	31	$	240	$	935	$	526,672	$	527,607	$	—
Real estate:
Commercial real estate		865		—				865		899,881		900,746		—
Construction and development		—		532		—		532		527,280		527,812		—
1-4 family residential		499		—				499		279,693		280,192		—
Multi-family residential		—		—		—		—		277,209		277,209		—
Consumer		43		—		—		43		36,739		36,782		—
Agriculture		—		—		—		—		9,812		9,812		—
Other		—		—				—		86,513		86,513		—
Total loans	$	2,071	$	563	$	240	$	2,874	$	2,643,799	$	2,646,673	$	—

The Company places loans on nonaccrual status because of delinquency or because collection of principal or interest is doubtful. Nonaccrual loans, segregated by loan class, as of the dates shown below were as follows:



(Dollars in thousands)	June 30, 2020		December 31, 2019
Commercial and industrial	$	5,519	$	596
Real estate:
Commercial real estate		4,811		67
Construction and development		506		—
1-4 family residential		332		314
Total nonaccrual loans	$	11,168	$	977

Interest income that would have been earned under the original terms of the nonaccrual loans was $121,000 and $87,000 for the six months ended June 30, 2020 and 2019, respectively.

Troubled debt restructurings, or TDRs, are loans restructured due to the borrower’s financial difficulties. The TDRs during the six months ended June 30, 2020 and 2019 were as follows:



				Post-modification recorded investment
										Extended Maturity,
		Pre-modification						Extended		Restructured
		Outstanding						Maturity and		Payments
	Number	Recorded		Restructured		Extended		Restructured		and Adjusted
(Dollars in thousands)	of Loans	Investment		Payments		Maturity		Payments		Interest Rate
June 30, 2020
Commercial and industrial	17	$	3,131	$	2,899	$	—	$	—	$	232
Commercial real estate	8		9,715		9,715		—		—		—
Construction and development	5		12,564		12,032		—		—		532
1-4 family residential	5		1,629		1,651		—		—		—
Total	35	$	27,039	$	26,297	$	—	$	—	$	764
June 30, 2019
Commercial and industrial	1	$	163	$	—	$	—	$	—	$	163
1-4 family residential	1		115		—		—		—		115
Total	2	$	278	$	—	$	—	$	—	$	278

Loan modifications related to a loan refinancing or restructuring other than a TDR are accounted for as a new loan if the terms provided to the borrower are at least as favorable to the Company as terms for comparable loans to other borrowers with similar collection risks that is not a loan refinancing or restructuring. If the loan refinancing or restructuring does not meet this condition or if only minor modifications are made to the original loan contract, it is not considered a new loan and is considered a renewal or modification of the original contract. Restructured or modified loans are not considered past due if they are performing under the terms of the modified or restructured payment schedule.

Outstanding loans restructured as a TDR and other loans individually evaluated were as follows for the dates indicated below:


(Dollars in thousands)	Accruing TDR	Non-Accrual TDR	Total TDR	Other Non-Accrual	Other Accruing	Total Individually Evaluated
June 30, 2020
Commercial and industrial	$ 3,147	$ 404	$ 3,551	$ 5,115	$ 748	$ 9,414
Real estate:
Commercial real estate	10,631	—	10,631	4,811	—	15,442
Construction and development	12,032	506	12,538	—	—	12,538
1-4 family residential	1,699	109	1,808	223	1,710	3,741
Other	6,272	—	6,272	—	—	6,272
Total	$ 33,781	$ 1,019	$ 34,800	$ 10,149	$ 2,458	$ 47,407

December 31, 2019
Commercial and industrial	$ 397	$ 282	$ 679	$ 314	$ 6	$ 999
Real estate:
Commercial real estate	1,337	—	1,337	67	—	1,404
1-4 family residential	54	111	165	203	3,283	3,651
Consumer	—	—	—	—	210	210
Other	6,653	—	6,653	—	—	6,653
Total	$ 8,441	$ 393	$ 8,834	$ 584	$ 3,499	$ 12,917

At June 30, 2020 and December 31, 2019, the Company had an outstanding commitment to fund $2.7 million and $2.0 million, respectively, on loans that were previously restructured. There were no loans modified as a TDR within the previous 12 months and for which there was a payment default. For purposes of this disclosure, a default is a loan modified as a TDR where the borrower is 90 days past due or results in the foreclosure and repossession of the applicable collateral.

In support of customers impacted by COVID-19 the Company offered payment deferrals. The deferral periods range from one to six-months, with the majority of the deferrals involving three-month arrangements. As of June 30, 2020, the Company entered into deferral arrangements on 689 loans with total outstanding principal of $545.0 million. These arrangements have resulted in the deferral of payments, including principal and interest, totaling $17.0 million, which includes all payments on the loans that are being deferred in accordance with the deferral arrangement.