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LOANS
 9 Months Ended
Sep. 30, 2017
Receivables [Abstract]  
LOANS
LOANS

The Bank engages in a full complement of lending activities, including real estate-related loans, agriculture-related loans, commercial and financial loans and consumer installment loans within select markets in Georgia, Alabama, Florida and South Carolina. The Bank purchased residential mortgage loan pools during 2015 and 2016 collateralized by properties located outside our Southeast markets, specifically in California, Washington and Illinois. During the third quarter of 2016, the Bank began purchasing from an unrelated third party consumer installment home improvement loans made to borrowers throughout the United States. As of September 30, 2017 and December 31, 2016, the net carrying value of these consumer installment home improvement loans was approximately $148.0 million and $60.8 million, respectively. During the fourth quarter of 2016, the Bank purchased a pool of commercial insurance premium finance loans made to borrowers throughout the United States and began to originate, administer and service these types of loans. As of September 30, 2017 and December 31, 2016, the net carrying value of commercial insurance premium loans was approximately $487.9 million and $353.9 million, respectively, and such loans are reported in the commercial, financial and agricultural loan category.
 
The Bank concentrates the majority of its lending activities in real estate loans. While risk of loss in the Company’s portfolio is primarily tied to the credit quality of the various borrowers, risk of loss may increase due to factors beyond the Company’s control, such as local, regional and/or national economic downturns. General conditions in the real estate market may also impact the relative risk in the real estate portfolio. A substantial portion of the Bank’s loans are secured by real estate in the Bank’s primary market area. In addition, a substantial portion of the OREO is located in those same markets. Accordingly, the ultimate collectability of a substantial portion of the Bank’s loan portfolio and the recovery of a substantial portion of the carrying amount of OREO are susceptible to changes in real estate conditions in the Bank’s primary market area.
 
Commercial, financial and agricultural loans include both secured and unsecured loans for working capital, expansion, crop production, commercial insurance premium finance, and other business purposes. Commercial, financial and agricultural loans also include SBA loans and municipal loans. Short-term working capital loans are secured by non-real estate collateral such as accounts receivable, crops, inventory and equipment. The Bank evaluates the financial strength, cash flow, management, credit history of the borrower and the quality of the collateral securing the loan. The Bank often requires personal guarantees and secondary sources of repayment on commercial, financial and agricultural loans.
 
Real estate loans include construction and development loans, commercial and farmland loans and residential loans. Construction and development loans include loans for the development of residential neighborhoods, one-to-four family home residential construction loans to builders and consumers, and commercial real estate construction loans, primarily for owner-occupied properties. The Company limits its construction lending risk through adherence to established underwriting procedures. Commercial real estate loans include loans secured by owner-occupied commercial buildings for office, storage, retail, farmland and warehouse space. They also include non-owner occupied commercial buildings such as leased retail and office space. Commercial real estate loans may be larger in size and may involve a greater degree of risk than one-to-four family residential mortgage loans. Payments on such loans are often dependent on successful operation or management of the properties. The Company’s residential loans represent permanent mortgage financing and are secured by residential properties located within the Bank's market areas, along with warehouse lines of credit secured by residential mortgages.
 
Consumer installment loans and other loans include home improvement loans, automobile loans, boat and recreational vehicle financing, and secured and unsecured personal loans. Consumer loans carry greater risks than other loans, as the collateral can consist of rapidly depreciating assets such as automobiles and equipment that may not provide an adequate source of repayment of the loan in the case of default.
 
Loans are stated at unpaid balances, net of unearned income and deferred loan fees. Balances within the major loans receivable categories are presented in the following table, excluding purchased loans:
(dollars in thousands)
September 30,
2017
 
December 31,
2016
Commercial, financial and agricultural
$
1,307,209

 
$
967,138

Real estate – construction and development
550,189

 
363,045

Real estate – commercial and farmland
1,558,882

 
1,406,219

Real estate – residential
969,289

 
781,018

Consumer installment
183,314

 
96,915

Other
5,795

 
12,486

 
$
4,574,678

 
$
3,626,821


 
Purchased loans are defined as loans that were acquired in bank acquisitions including those that are covered by a loss-sharing agreement with the Federal Deposit Insurance Corporation (the “FDIC”). Purchased loans totaling $917.1 million and $1.07 billion at September 30, 2017 and December 31, 2016, respectively, are not included in the above schedule.
 
Purchased loans are shown below according to major loan type as of the end of the periods shown:
(dollars in thousands)
September 30,
2017
 
December 31,
2016
Commercial, financial and agricultural
$
80,895

 
$
96,537

Real estate – construction and development
68,583

 
81,368

Real estate – commercial and farmland
500,169

 
576,355

Real estate – residential
264,312

 
310,277

Consumer installment
3,167

 
4,654

 
$
917,126

 
$
1,069,191


 
A rollforward of purchased loans for the nine months ended September 30, 2017 and 2016 is shown below:
(dollars in thousands)
September 30,
2017
 
September 30,
2016
Balance, January 1
$
1,069,191

 
$
909,083

Charge-offs, net of recoveries
(1,761
)
 
(3,122
)
Additions due to acquisitions
—

 
402,942

Accretion
9,023

 
12,926

Transfers to purchased other real estate owned
(4,294
)
 
(6,262
)
Payments received
(155,033
)
 
(186,276
)
Other
—

 
90

Ending balance
$
917,126

 
$
1,129,381


 
The following is a summary of changes in the accretable discounts of purchased loans during the nine months ended September 30, 2017 and 2016:
(dollars in thousands)
September 30,
2017
 
September 30,
2016
Balance, January 1
$
30,624

 
$
33,848

Additions due to acquisitions
—

 
9,991

Accretion
(9,023
)
 
(12,926
)
Accretable discounts removed due to charge-offs
(15
)
 
(161
)
Transfers between non-accretable and accretable discounts, net
923

 
2,544

Ending balance
$
22,509

 
$
33,296


 
Purchased loan pools are defined as groups of residential mortgage loans that were not acquired in bank acquisitions or FDIC-assisted transactions. As of September 30, 2017, purchased loan pools totaled $465.2 million and consisted of whole-loan, adjustable rate residential mortgages on properties outside the Company’s markets, with principal balances totaling $459.1 million and $6.1 million of remaining purchase premium paid at acquisition. As of December 31, 2016, purchased loan pools totaled $568.3 million with principal balances totaling $559.4 million and $8.9 million of remaining purchase premium paid at acquisition. At September 30, 2017 and December 31, 2016, one loan in the purchased loan pools with a principal balance of $915,000 and $925,000, respectively, was classified as a troubled debt restructuring and risk-rated grade 40, while all other loans included in the purchased loan pools were performing current loans risk-rated grade 20. During the second quarter of 2017, this troubled debt restructuring defaulted on its restructured terms and was placed on nonaccrual status. At September 30, 2017 and December 31, 2016, the Company had allocated $1.5 million and $1.8 million, respectively, of allowance for loan losses for the purchased loan pools. As part of the due diligence process prior to purchasing an individual mortgage pool, a complete re-underwrite of the individual loan files was conducted. The underwriting process included a review of all income, asset, credit and property related documentation that was used to originate the loan. Underwriters utilized the originating lender’s program guidelines, as well as general prudent mortgage lending standards, to assess each individual loan file.  Additional research was conducted to assess the real estate market conditions and market expectations in the geographic areas where a collateral concentration existed. As part of this review, an automated valuation model was employed to provide current collateral valuations and to support individual loan-to-value ratios.  Additionally, a sample of site inspections was completed to provide further assurance.  The results of the due diligence review were evaluated by officers of the Company in order to determine overall conformance to the Bank’s credit and lending policies.
 


Nonaccrual and Past-Due Loans

A loan is placed on nonaccrual status when, in management’s judgment, the collection of the interest income appears doubtful. Interest receivable that has been accrued and is subsequently determined to have doubtful collectability is charged against interest income.  Interest on loans that are classified as nonaccrual is subsequently applied to principal until the loans are returned 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.  Past-due loans are loans whose principal or interest is past due 30 days or more. In some cases, where borrowers are experiencing financial difficulties, loans may be restructured to provide terms significantly different from the original contractual terms.
 
The following table presents an analysis of loans accounted for on a nonaccrual basis, excluding purchased loans:
(dollars in thousands)
September 30,
2017
 
December 31,
2016
Commercial, financial and agricultural
$
2,409

 
$
1,814

Real estate – construction and development
735

 
547

Real estate – commercial and farmland
5,705

 
8,757

Real estate – residential
5,984

 
6,401

Consumer installment
492

 
595

 
$
15,325

 
$
18,114


 
The following table presents an analysis of purchased loans accounted for on a nonaccrual basis:
(dollars in thousands)
September 30,
2017
 
December 31,
2016
Commercial, financial and agricultural
$
2,086

 
$
692

Real estate – construction and development
3,255

 
2,611

Real estate – commercial and farmland
6,974

 
10,174

Real estate – residential
6,646

 
9,476

Consumer installment
88

 
13

 
$
19,049

 
$
22,966


 
The following table presents an analysis of past-due loans, excluding purchased past-due loans as of September 30, 2017 and December 31, 2016: 
(dollars in thousands)
Loans
30-59
Days Past
Due
 
Loans
60-89
Days
Past Due
 
Loans 90
or More
Days Past
Due
 
Total
Loans
Past Due
 
Current
Loans
 
Total
Loans
 
Loans 90
Days or
More Past
Due and
Still
Accruing
September 30, 2017
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial, financial and agricultural
$
5,388

 
$
2,488

 
$
5,025

 
$
12,901

 
$
1,294,308

 
$
1,307,209

 
$
2,941

Real estate – construction and development
341

 
52

 
517

 
910

 
549,279

 
550,189

 
—

Real estate – commercial and farmland
2,369

 
1,097

 
5,203

 
8,669

 
1,550,213

 
1,558,882

 
—

Real estate – residential
3,293

 
1,938

 
4,165

 
9,396

 
959,893

 
969,289

 
—

Consumer installment loans
1,034

 
408

 
338

 
1,780

 
181,534

 
183,314

 
—

Other
—

 
—

 
—

 
—

 
5,795

 
5,795

 
—

Total
$
12,425

 
$
5,983

 
$
15,248

 
$
33,656

 
$
4,541,022

 
$
4,574,678

 
$
2,941

 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial, financial and agricultural
$
565

 
$
82

 
$
1,293

 
$
1,940

 
$
965,198

 
$
967,138

 
$
—

Real estate – construction and development
908

 
446

 
439

 
1,793

 
361,252

 
363,045

 
—

Real estate – commercial and farmland
6,329

 
1,711

 
6,945

 
14,985

 
1,391,234

 
1,406,219

 
—

Real estate – residential
6,354

 
1,282

 
5,302

 
12,938

 
768,080

 
781,018

 
—

Consumer installment loans
624

 
263

 
350

 
1,237

 
95,678

 
96,915

 
—

Other
—

 
—

 
—

 
—

 
12,486

 
12,486

 
—

Total
$
14,780

 
$
3,784

 
$
14,329

 
$
32,893

 
$
3,593,928

 
$
3,626,821

 
$
—

 
The following table presents an analysis of purchased past-due loans as of September 30, 2017 and December 31, 2016: 
 
(dollars in thousands)
Loans
30-59
Days Past
Due
 
Loans
60-89
Days
Past Due
 
Loans 90
or More
Days Past
Due
 
Total
Loans
Past Due
 
Current
Loans
 
Total
Loans
 
Loans 90
Days or
More Past
Due and
Still
Accruing
September 30, 2017
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial, financial and agricultural
$
2,674

 
$
2

 
$
288

 
$
2,964

 
$
77,931

 
$
80,895

 
$
—

Real estate – construction and development
1,221

 
935

 
1,713

 
3,869

 
64,714

 
68,583

 
—

Real estate – commercial and farmland
2,842

 
1,318

 
1,823

 
5,983

 
494,186

 
500,169

 
—

Real estate – residential
3,308

 
440

 
3,435

 
7,183

 
257,129

 
264,312

 
—

Consumer installment loans
1

 
4

 
43

 
48

 
3,119

 
3,167

 
—

Total
$
10,046

 
$
2,699

 
$
7,302

 
$
20,047

 
$
897,079

 
$
917,126

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial, financial and agricultural
$
113

 
$
18

 
$
593

 
$
724

 
$
95,813

 
$
96,537

 
$
—

Real estate – construction and development
161

 
11

 
2,518

 
2,690

 
78,678

 
81,368

 
—

Real estate – commercial and farmland
2,034

 
326

 
7,152

 
9,512

 
566,843

 
576,355

 
—

Real estate – residential
4,566

 
698

 
6,835

 
12,099

 
298,178

 
310,277

 
—

Consumer installment loans
22

 
—

 
13

 
35

 
4,619

 
4,654

 
—

Total
$
6,896

 
$
1,053

 
$
17,111

 
$
25,060

 
$
1,044,131

 
$
1,069,191

 
$
—


 

Impaired Loans

Loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreements. Impaired loans include loans on nonaccrual status and accruing troubled debt restructurings. When determining if the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement, the Company considers the borrower’s capacity to pay, which includes such factors as the borrower’s current financial statements, an analysis of global cash flow sufficient to pay all debt obligations and an evaluation of secondary sources of repayment, such as guarantor support and collateral value. The Company individually assesses for impairment all nonaccrual loans greater than $100,000 and all troubled debt restructurings greater than $100,000 (including all troubled debt restructurings, whether or not currently classified as such). The tables below include all loans deemed impaired, whether or not individually assessed for impairment. If a loan is deemed impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis.
 
The following is a summary of information pertaining to impaired loans, excluding purchased loans: 
 
As of and for the Period Ended
(dollars in thousands)
September 30,
2017
 
December 31,
2016
 
September 30,
2016
Nonaccrual loans
$
15,325

 
$
18,114

 
$
16,570

Troubled debt restructurings not included above
12,452

 
14,209

 
14,013

Total impaired loans
$
27,777

 
$
32,323

 
$
30,583

 
 
 
 
 
 
Quarter-to-date interest income recognized on impaired loans
$
297

 
$
225

 
$
252

Year-to-date interest income recognized on impaired loans
$
857

 
$
1,033

 
$
808

Quarter-to-date foregone interest income on impaired loans
$
233

 
$
267

 
$
239

Year-to-date foregone interest income on impaired loans
$
753

 
$
977

 
$
710

 
The following table presents an analysis of information pertaining to impaired loans, excluding purchased loans as of September 30, 2017, December 31, 2016 and September 30, 2016:
(dollars in thousands)
Unpaid
Contractual
Principal
Balance
 
Recorded
Investment
With No
Allowance
 
Recorded
Investment
With
Allowance
 
Total
Recorded
Investment
 
Related
Allowance
 
Three
 Month
Average
Recorded
Investment
 
Nine
 Month
Average
Recorded
Investment
September 30, 2017
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial, financial and agricultural
$
2,924

 
$
1,121

 
$
1,331

 
$
2,452

 
$
379

 
$
2,478

 
$
2,380

Real estate – construction and development
1,655

 
532

 
627

 
1,159

 
81

 
1,179

 
1,160

Real estate – commercial and farmland
11,451

 
536

 
9,938

 
10,474

 
806

 
10,669

 
11,416

Real estate – residential
15,211

 
4,558

 
8,636

 
13,194

 
1,058

 
13,683

 
14,814

Consumer installment loans
538

 
498

 
—

 
498

 
—

 
507

 
554

Total
$
31,779

 
$
7,245

 
$
20,532

 
$
27,777

 
$
2,324

 
$
28,516

 
$
30,324

 
(dollars in thousands)
Unpaid
Contractual
Principal
Balance
 
Recorded
Investment
With No
Allowance
 
Recorded
Investment
With
Allowance
 
Total
Recorded
Investment
 
Related
Allowance
 
Three
Month
Average
Recorded
Investment
 
Twelve
Month
Average
Recorded
Investment
December 31, 2016
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial, financial and agricultural
$
3,068

 
$
204

 
$
1,656

 
$
1,860

 
$
134

 
$
1,613

 
$
1,684

Real estate – construction and development
2,047

 
—

 
1,233

 
1,233

 
273

 
1,590

 
2,018

Real estate – commercial and farmland
13,906

 
6,811

 
6,065

 
12,876

 
1,503

 
12,948

 
12,845

Real estate – residential
15,482

 
2,238

 
13,503

 
15,741

 
3,080

 
15,525

 
14,453

Consumer installment loans
671

 
—

 
613

 
613

 
5

 
576

 
506

Total
$
35,174

 
$
9,253

 
$
23,070

 
$
32,323

 
$
4,995

 
$
32,252

 
$
31,506

(dollars in thousands)
Unpaid
Contractual
Principal
Balance
 
Recorded
Investment
With No
Allowance
 
Recorded
Investment
With
Allowance
 
Total
Recorded
Investment
 
Related 
Allowance
 
Three
 Month
Average
Recorded
Investment
 
Nine
 Month
Average
Recorded
Investment
September 30, 2016
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial, financial and agricultural
$
2,568

 
$
252

 
$
1,114

 
$
1,366

 
$
118

 
$
1,736

 
$
1,640

Real estate – construction and development
2,972

 
—

 
1,946

 
1,946

 
537

 
2,001

 
2,214

Real estate – commercial and farmland
14,015

 
5,499

 
7,520

 
13,019

 
873

 
12,776

 
12,837

Real estate – residential
14,350

 
2,046

 
11,667

 
13,713

 
2,648

 
13,686

 
13,516

Consumer installment loans
586

 
—

 
539

 
539

 
6

 
492

 
479

Total
$
34,491

 
$
7,797

 
$
22,786

 
$
30,583

 
$
4,182

 
$
30,691

 
$
30,686


 
The following is a summary of information pertaining to purchased impaired loans: 
 
As of and for the Period Ended
(dollars in thousands)
September 30,
2017
 
December 31,
2016
 
September 30,
2016
Nonaccrual loans
$
19,049

 
$
22,966

 
$
23,827

Troubled debt restructurings not included above
20,205

 
23,543

 
21,117

Total impaired loans
$
39,254

 
$
46,509

 
$
44,944

 
 
 
 
 
 
Quarter-to-date interest income recognized on impaired loans
$
493

 
$
377

 
$
1,493

Year-to-date interest income recognized on impaired loans
$
1,246

 
$
2,755

 
$
2,378

Quarter-to-date foregone interest income on impaired loans
$
356

 
$
354

 
$
346

Year-to-date foregone interest income on impaired loans
$
958

 
$
1,637

 
$
1,283


The following table presents an analysis of information pertaining to purchased impaired loans as of September 30, 2017, December 31, 2016 and September 30, 2016:
(dollars in thousands)
Unpaid
Contractual
Principal
Balance
 
Recorded
Investment
With No
Allowance
 
Recorded
Investment
With
Allowance
 
Total
Recorded
Investment
 
Related 
Allowance
 
Three
 Month
Average
Recorded
Investment
 
Nine
 Month
Average
Recorded
Investment
September 30, 2017
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial, financial and agricultural
$
5,333

 
$
345

 
$
1,741

 
$
2,086

 
$
800

 
$
1,128

 
$
831

Real estate – construction and development
9,268

 
1,189

 
3,088

 
4,277

 
537

 
3,885

 
3,807

Real estate – commercial and farmland
16,492

 
1,516

 
11,766

 
13,282

 
1,140

 
13,658

 
16,063

Real estate – residential
22,462

 
7,224

 
12,297

 
19,521

 
762

 
20,088

 
21,308

Consumer installment loans
97

 
88

 
—

 
88

 
—

 
58

 
40

Total
$
53,652

 
$
10,362

 
$
28,892

 
$
39,254

 
$
3,239

 
$
38,817

 
$
42,049

(dollars in thousands)
Unpaid
Contractual
Principal
Balance
 
Recorded
Investment
With No
Allowance
 
Recorded
Investment
With
Allowance
 
Total
Recorded
Investment
 
Related 
Allowance
 
Three
Month
Average
Recorded
Investment
 
Twelve
Month
Average
Recorded
Investment
December 31, 2016
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial, financial and agricultural
$
5,031

 
$
370

 
$
322

 
$
692

 
$
—

 
$
783

 
$
2,206

Real estate – construction and development
24,566

 
493

 
3,477

 
3,970

 
153

 
3,888

 
4,279

Real estate – commercial and farmland
36,174

 
3,598

 
15,036

 
18,634

 
385

 
17,806

 
19,872

Real estate – residential
27,022

 
7,883

 
15,306

 
23,189

 
1,088

 
23,201

 
23,163

Consumer installment loans
37

 
24

 
—

 
24

 
—

 
51

 
96

Total
$
92,830

 
$
12,368

 
$
34,141

 
$
46,509

 
$
1,626

 
$
45,729

 
$
49,616

(dollars in thousands)
Unpaid
Contractual
Principal
Balance
 
Recorded
Investment
With No
Allowance
 
Recorded
Investment
With
Allowance
 
Total
Recorded
Investment
 
Related
Allowance
 
Three
Month
Average
Recorded
Investment
 
Nine
 Month
Average
Recorded
Investment
September 30, 2016
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial, financial and agricultural
$
5,097

 
$
648

 
$
225

 
$
873

 
$
—

 
$
838

 
$
2,251

Real estate – construction and development
24,253

 
296

 
3,509

 
3,805

 
184

 
3,946

 
4,075

Real estate – commercial and farmland
41,098

 
1,861

 
15,116

 
16,977

 
402

 
18,196

 
19,569

Real estate – residential
26,908

 
7,473

 
15,740

 
23,213

 
935

 
23,103

 
22,893

Consumer installment loans
98

 
76

 
—

 
76

 
—

 
80

 
105

Total
$
97,454

 
$
10,354

 
$
34,590

 
$
44,944

 
$
1,521

 
$
46,163

 
$
48,893


 
Credit Quality Indicators

The Company uses a nine category risk grading system to assign a risk grade to each loan in the portfolio. The following is a description of the general characteristics of the grades:
 
Grade 10 – Prime Credit – This grade represents loans to the Company’s most creditworthy borrowers or loans that are secured by cash or cash equivalents.
 
Grade 15 – Good Credit – This grade includes loans that exhibit one or more characteristics better than that of a Satisfactory Credit. Generally, the debt service coverage and borrower’s liquidity is materially better than required by the Company’s loan policy.
 
Grade 20 – Satisfactory Credit – This grade is assigned to loans to borrowers who exhibit satisfactory credit histories, contain acceptable loan structures and demonstrate ability to repay.
 
Grade 23 – Performing, Under-Collateralized Credit – This grade is assigned to loans that are currently performing and supported by adequate financial information that reflects repayment capacity but exhibits a loan-to-value ratio greater than 110%, based on a documented collateral valuation.
 
Grade 25 – Minimum Acceptable Credit – This grade includes loans which exhibit all the characteristics of a Satisfactory Credit, but warrant more than normal level of banker supervision due to (i) circumstances which elevate the risks of performance (such as start-up operations, untested management, heavy leverage and interim losses); (ii) adverse, extraordinary events that have affected, or could affect, the borrower’s cash flow, financial condition, ability to continue operating profitability or refinancing (such as death of principal, fire and divorce); (iii) loans that require more than the normal servicing requirements (such as any type of construction financing, acquisition and development loans, accounts receivable or inventory loans and floor plan loans); (iv) existing technical exceptions which raise some doubts about the Bank’s perfection in its collateral position or the continued financial capacity of the borrower; or (v) improvements in formerly criticized borrowers, which may warrant banker supervision.
 
Grade 30 – Other Asset Especially Mentioned – This grade includes loans that exhibit potential weaknesses that deserve management’s close attention. If left uncorrected, these weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date.
 
Grade 40 – Substandard – This grade represents loans which are inadequately protected by the current credit worthiness and paying capacity of the borrower or of the collateral pledged, if any. These assets exhibit a well-defined weakness or are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. These weaknesses may be characterized by past due performance, operating losses or questionable collateral values.
 
Grade 50 – Doubtful – This grade includes loans which exhibit all of the characteristics of a substandard loan with the added provision that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable or improbable.
 
Grade 60 – Loss – This grade is assigned to loans which are considered uncollectible and of such little value that their continuance as active assets of the Bank is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing it off.
 
The following table presents the loan portfolio, excluding purchased loans, by risk grade as of September 30, 2017 and December 31, 2016 (in thousands): 
Risk
Grade 
 
Commercial,
Financial and
Agricultural
 
Real Estate -
Construction and
Development
 
Real Estate -
Commercial and
Farmland
 
Real Estate -
Residential
 
Consumer
Installment
Loans
 
Other
 
Total
September 30, 2017
10
 
$
495,116

 
$
—

 
$
6,029

 
$
49

 
$
9,068

 
$
—

 
$
510,262

15
 
559,781

 
959

 
75,462

 
55,759

 
256

 
—

 
692,217

20
 
117,904

 
48,640

 
1,005,945

 
800,557

 
24,332

 
5,795

 
2,003,173

23
 
343

 
4,403

 
4,242

 
5,986

 
3

 
—

 
14,977

25
 
121,558

 
488,956

 
431,862

 
86,702

 
148,891

 
—

 
1,277,969

30
 
8,350

 
4,458

 
17,568

 
5,674

 
93

 
—

 
36,143

40
 
4,150

 
2,773

 
17,774

 
14,562

 
671

 
—

 
39,930

50
 
7

 
—

 
—

 
—

 
—

 
—

 
7

60
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
 
$
1,307,209

 
$
550,189

 
$
1,558,882

 
$
969,289

 
$
183,314

 
$
5,795

 
$
4,574,678

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
10
 
$
397,093

 
$
—

 
$
8,814

 
$
125

 
$
8,532

 
$
—

 
$
414,564

15
 
376,323

 
5,390

 
102,893

 
54,136

 
405

 
—

 
539,147

20
 
97,057

 
36,307

 
889,539

 
609,583

 
25,026

 
12,486

 
1,669,998

23
 
366

 
6,803

 
8,533

 
7,470

 
14

 
—

 
23,186

25
 
92,066

 
307,903

 
357,151

 
88,370

 
62,098

 
—

 
907,588

30
 
144

 
719

 
22,986

 
5,197

 
126

 
—

 
29,172

40
 
4,089

 
5,923

 
16,303

 
16,038

 
714

 
—

 
43,067

50
 
—

 
—

 
—

 
99

 
—

 
—

 
99

60
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
 
$
967,138

 
$
363,045

 
$
1,406,219

 
$
781,018

 
$
96,915

 
$
12,486

 
$
3,626,821


 
The following table presents the purchased loan portfolio by risk grade as of September 30, 2017 and December 31, 2016 (in thousands):       
Risk
Grade 
 
Commercial,
Financial and
Agricultural
 
Real Estate -
Construction and
Development
 
Real Estate -
Commercial and
Farmland
 
Real Estate -
Residential
 
Consumer
Installment
Loans
 
Other
 
Total
September 30, 2017
10
 
$
3,377

 
$
—

 
$
—

 
$
—

 
$
662

 
$
—

 
$
4,039

15
 
4,969

 
—

 
5,327

 
96,570

 
231

 
—

 
107,097

20
 
9,497

 
13,548

 
198,960

 
52,646

 
1,204

 
—

 
275,855

23
 
—

 
2,302

 
6,936

 
10,621

 
—

 
—

 
19,859

25
 
47,822

 
40,500

 
243,216

 
79,374

 
864

 
—

 
411,776

30
 
12,817

 
7,617

 
22,829

 
7,378

 
55

 
—

 
50,696

40
 
2,413

 
4,616

 
22,901

 
17,723

 
151

 
—

 
47,804

50
 
—

 
—

 
—

 
—

 
—

 
—

 
—

60
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
 
$
80,895

 
$
68,583

 
$
500,169

 
$
264,312

 
$
3,167

 
$
—

 
$
917,126

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
10
 
$
5,722

 
$
—

 
$
—

 
$
—

 
$
814

 
$
—

 
$
6,536

15
 
1,266

 
—

 
7,619

 
31,331

 
570

 
—

 
40,786

20
 
16,204

 
10,686

 
194,168

 
111,712

 
1,583

 
—

 
334,353

23
 
22

 
3,643

 
9,019

 
14,791

 
—

 
—

 
27,475

25
 
67,123

 
56,006

 
323,242

 
121,379

 
1,276

 
—

 
569,026

30
 
5,072

 
7,271

 
15,039

 
7,605

 
45

 
—

 
35,032

40
 
1,128

 
3,762

 
27,268

 
23,459

 
366

 
—

 
55,983

50
 
—

 
—

 
—

 
—

 
—

 
—

 
—

60
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
 
$
96,537

 
$
81,368

 
$
576,355

 
$
310,277

 
$
4,654

 
$
—

 
$
1,069,191


 
Troubled Debt Restructurings
 
The restructuring of a loan is considered a “troubled debt restructuring” if both (i) the borrower is experiencing financial difficulties and (ii) the Company has granted a concession. Concessions may include interest rate reductions to below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. The Company has exhibited the greatest success for rehabilitation of the loan by a reduction in the rate alone (maintaining the amortization of the debt) or a combination of a rate reduction and the forbearance of previously past due interest or principal. This has most typically been evidenced in certain commercial real estate loans whereby a disruption in the borrower’s cash flow resulted in an extended past due status, of which the borrower was unable to catch up completely as the cash flow of the property ultimately stabilized at a level lower than its original level. A reduction in rate, coupled with a forbearance of unpaid principal and/or interest, allowed the net cash flows to service the debt under the modified terms.
 
The Company’s policy requires a restructure request to be supported by a current, well-documented credit evaluation of the borrower’s financial condition and a collateral evaluation that is no older than six months from the date of the restructure. Key factors of that evaluation include the documentation of current, recurring cash flows, support provided by the guarantor(s) and the current valuation of the collateral. If the appraisal in the file is older than six months, an evaluation must be made as to the continued reasonableness of the valuation. For certain income-producing properties, current rent rolls and/or other income information can be utilized to support the appraisal valuation, when coupled with documented cap rates within our markets and a physical inspection of the collateral to validate the current condition.
 
The Company’s policy states that in the event a loan has been identified as a troubled debt restructuring, it should be assigned a grade of substandard and placed on nonaccrual status until such time the borrower has demonstrated the ability to service the loan payments based on the restructured terms – generally defined as six months of satisfactory payment history. Missed payments under the original loan terms are not considered under the new structure; however, subsequent missed payments are considered non-performance and are not considered toward the six month required term of satisfactory payment history. The Company’s loan policy states that a nonaccrual loan may be returned to accrual status when (i) none of its principal and interest is due and unpaid, and the Company expects repayment of the remaining contractual principal and interest or (ii) it otherwise becomes well secured and in the process of collection. Restoration to accrual status on any given loan must be supported by a well-documented credit evaluation of the borrower’s financial condition and the prospects for full repayment and approved by the Company’s Chief Credit Officer.
 
In the normal course of business, the Company renews loans with a modification of the interest rate or terms that are not deemed as troubled debt restructurings because the borrower is not experiencing financial difficulty. The Company modified loans in the first nine months of 2017 and 2016 totaling $36.6 million and $58.2 million, respectively, under such parameters.
 
As of September 30, 2017 and December 31, 2016, the Company had a balance of $14.2 million and $18.2 million, respectively, in troubled debt restructurings, excluding purchased loans. The Company has recorded $2.8 million and $1.2 million in previous charge-offs on such loans at September 30, 2017 and December 31, 2016, respectively. The Company’s balance in the allowance for loan losses allocated to such troubled debt restructurings was $1.2 million and $3.1 million at September 30, 2017 and December 31, 2016, respectively. At September 30, 2017, the Company did not have any commitments to lend additional funds to debtors whose terms have been modified in troubled restructurings.
 
During the nine months ended September 30, 2017 and 2016, the Company modified loans as troubled debt restructurings, excluding purchased loans, with principal balances of $783,000 and $2.9 million, respectively, and these modifications did not have a material impact on the Company’s allowance for loan loss. The following table presents the loans by class modified as troubled debt restructurings, excluding purchased loans, which occurred during the nine months ended September 30, 2017 and 2016: 
 
September 30, 2017
 
September 30, 2016
Loan Class
#
 
Balance
(in thousands)
 
#
 
Balance
(in thousands)
Commercial, financial and agricultural
1
 
$
4

 
5
 
$
59

Real estate – construction and development
—
 
—

 
2
 
251

Real estate – commercial and farmland
2
 
226

 
4
 
1,658

Real estate – residential
10
 
526

 
7
 
887

Consumer installment
6
 
27

 
9
 
44

Total
19
 
$
783

 
27
 
$
2,899


 
Troubled debt restructurings, excluding purchased loans, with an outstanding balance of $1.2 million and $793,000 defaulted during the nine months ended September 30, 2017 and 2016, respectively, and these defaults did not have a material impact on the Company’s allowance for loan loss. The following table presents for loans, excluding purchased loans, the troubled debt restructurings by class that defaulted (defined as 30 days past due) during the nine months ended September 30, 2017 and 2016: 
 
September 30, 2017
 
September 30, 2016
Loan Class
#
 
Balance
(in thousands)
 
#
 
Balance
(in thousands)
Commercial, financial and agricultural
4
 
$
58

 
5
 
$
51

Real estate – construction and development
1
 
25

 
—
 
—

Real estate – commercial and farmland
4
 
200

 
5
 
517

Real estate – residential
12
 
878

 
3
 
219

Consumer installment
7
 
25

 
2
 
6

Total
28
 
$
1,186

 
15
 
$
793


 
The following table presents the amount of troubled debt restructurings by loan class, excluding purchased loans, classified separately as accrual and nonaccrual at September 30, 2017 and December 31, 2016: 
September 30, 2017
Accruing Loans
 
Non-Accruing Loans
Loan Class
#
 
Balance
(in thousands)
 
#
 
Balance
(in thousands)
Commercial, financial and agricultural
4
 
$
44

 
13
 
$
129

Real estate – construction and development
7
 
424

 
2
 
34

Real estate – commercial and farmland
16
 
4,769

 
5
 
210

Real estate – residential
78
 
7,209

 
16
 
1,212

Consumer installment
4
 
6

 
36
 
130

Total
109
 
$
12,452

 
72
 
$
1,715

December 31, 2016
Accruing Loans
 
Non-Accruing Loans
Loan Class
#
 
Balance
(in thousands)
 
#
 
Balance
(in thousands)
Commercial, financial and agricultural
4
 
$
47

 
15
 
$
114

Real estate – construction and development
8
 
686

 
2
 
34

Real estate – commercial and farmland
16
 
4,119

 
5
 
2,970

Real estate – residential
82
 
9,340

 
15
 
739

Consumer installment
7
 
17

 
32
 
130

Total
117
 
$
14,209

 
69
 
$
3,987


 
As of September 30, 2017 and December 31, 2016, the Company had a balance of $26.0 million and $28.1 million, respectively, in troubled debt restructurings included in purchased loans. The Company has recorded $1.5 million in previous charge-offs on such loans at both September 30, 2017 and December 31, 2016. At September 30, 2017, the Company did not have any commitments to lend additional funds to debtors whose terms have been modified in troubled restructurings.
 
During the nine months ended September 30, 2017 and 2016, the Company modified purchased loans as troubled debt restructurings, with principal balances of $1.0 million and $1.9 million, respectively, and these modifications did not have a material impact on the Company’s allowance for loan loss. The following table presents the purchased loans by class modified as troubled debt restructurings, which occurred during the nine months ended September 30, 2017 and 2016: 
 
September 30, 2017
 
September 30, 2016
Loan Class
#
 
Balance
(in thousands)
 
#
 
Balance
(in thousands)
Commercial, financial and agricultural
—
 
$
—

 
1
 
$
76

Real estate – construction and development
—
 
—

 
—
 
—

Real estate – commercial and farmland
—
 
—

 
3
 
708

Real estate – residential
8
 
1,005

 
8
 
1,130

Consumer installment
—
 
—

 
—
 
—

Total
8
 
$
1,005

 
12
 
$
1,914


 
Troubled debt restructurings included in purchased loans with an outstanding balance of $2.3 million and $733,000 defaulted during the nine months ended September 30, 2017 and 2016, respectively, and these defaults did not have a material impact on the Company’s allowance for loan loss.
The following table presents purchased loan troubled debt restructurings by class that defaulted (defined as 30 days past due) during the nine months ended September 30, 2017 and 2016:
 
September 30, 2017
 
September 30, 2016
Loan Class
#
 
Balance
(in thousands)
 
#
 
Balance
(in thousands)
Commercial, financial and agricultural
1
 
$
5

 
2
 
$
76

Real estate – construction and development
—
 
—

 
1
 
10

Real estate – commercial and farmland
5
 
1,945

 
1
 
207

Real estate – residential
7
 
333

 
11
 
440

Consumer installment
1
 
3

 
—
 
—

Total
14
 
$
2,286

 
15
 
$
733


 
The following table presents the amount of troubled debt restructurings by loan class of purchased loans, classified separately as accrual and nonaccrual at September 30, 2017 and December 31, 2016. 
September 30, 2017
Accruing Loans
 
Non-Accruing Loans
Loan Class
#
 
Balance
(in thousands)
 
#
 
Balance
(in thousands)
Commercial, financial and agricultural
—
 
$
—

 
3
 
$
18

Real estate – construction and development
3
 
1,022

 
6
 
349

Real estate – commercial and farmland
15
 
6,308

 
11
 
3,834

Real estate – residential
119
 
12,875

 
25
 
1,627

Consumer installment
—
 
—

 
2
 
6

Total
137
 
$
20,205

 
47
 
$
5,834

December 31, 2016
Accruing Loans
 
Non-Accruing Loans
Loan Class
#
 
Balance
(in thousands)
 
#
 
Balance
(in thousands)
Commercial, financial and agricultural
1
 
$
1

 
4
 
$
91

Real estate – construction and development
6
 
1,358

 
3
 
30

Real estate – commercial and farmland
20
 
8,460

 
5
 
2,402

Real estate – residential
123
 
13,713

 
33
 
2,077

Consumer installment
3
 
11

 
1
 
—

Total
153
 
$
23,543

 
46
 
$
4,600


 
Allowance for Loan Losses
 
The allowance for loan losses represents an allowance for probable incurred losses in the loan portfolio. The adequacy of the allowance for loan losses is evaluated periodically based on a review of all significant loans, with a particular emphasis on non-accruing, past-due and other loans that management believes might be potentially impaired or warrant additional attention. The Company segregates the loan portfolio by type of loan and utilizes this segregation in evaluating exposure to risks within the portfolio. In addition, based on internal reviews and external reviews performed by regulatory authorities, the Company further segregates the loan portfolio by loan grades based on an assessment of risk for a particular loan or group of loans. Certain reviewed loans are assigned specific allowances when a review of relevant data determines that a general allocation is not sufficient or when the review affords management the opportunity to adjust the amount of exposure in a given credit. In establishing allowances, management considers historical loan loss experience but adjusts this data with a significant emphasis on current loan quality trends, current economic conditions and other factors in the markets where the Company operates. Factors considered include, among others, current valuations of real estate in the Company’s markets, unemployment rates, the effect of weather conditions on agricultural related entities and other significant local economic events, such as major plant closings.
 
The Company has developed a methodology for determining the adequacy of the allowance for loan losses which is monitored by the Company’s Chief Credit Officer. Procedures provide for the assignment of a risk rating for every loan included in the total loan portfolio. Mortgage warehouse lines of credit, overdraft protection loans, commercial insurance premium finance loans, and certain consumer and mortgage loans serviced by outside processors are treated as pools for risk rating purposes. The risk rating schedule provides nine ratings of which five ratings are classified as pass ratings and four ratings are classified as criticized ratings. Each risk rating is assigned a percentage factor to be applied to the loan balance to determine the adequate amount of reserve. The Bank’s independent internal loan review department reviews on an annual basis a sample of relationships in excess of $500,000. Sampling is based on a number of factors unique to the Bank’s portfolio risks, including, but not limited to, lending divisions, industry, risk grades, and new originations. As a result of these loan reviews, certain loans may be identified as having deteriorating credit quality. Other loans that surface as problem loans may also be assigned specific reserves. Past-due loans are assigned risk ratings based on the number of days past due. The calculation of the allowance for loan losses, including underlying data and assumptions, is reviewed regularly by the Company’s Chief Financial Officer and the independent internal loan review department.
 
Loan losses are charged against the allowance when management believes the collection of a loan’s principal is unlikely. Subsequent recoveries are credited to the allowance. Consumer loans are charged-off in accordance with the Federal Financial Institutions Examination Council’s (“FFIEC”) Uniform Retail Credit Classification and Account Management Policy. Commercial loans are charged-off when they are deemed uncollectible, which usually involves a triggering event within the collection effort. If the loan is collateral dependent, the loss is more easily identified and is charged-off when it is identified, usually based upon receipt of an appraisal. However, when a loan has guarantor support, the Company may carry the estimated loss as a reserve against the loan while collection efforts with the guarantor are pursued. If, after collection efforts with the guarantor are complete, the deficiency is still considered uncollectible, the loss is charged-off and any further collections are treated as recoveries. In all situations, when a loan is downgraded to an Asset Quality Rating of 60 (Loss per the regulatory guidance), the uncollectible portion is charged-off.

The following tables detail activity in the allowance for loan losses by portfolio segment for the three and nine-month periods ended September 30, 2017, the year ended December 31, 2016 and the three and nine-month periods ended September 30, 2016. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.
(dollars in thousands)
Commercial,
Financial and
Agricultural
 
Real Estate –
Construction and
Development
 
Real Estate –
Commercial and
Farmland
 
Real Estate –
Residential
 
Consumer
Installment
Loans and
Other
 
Purchased 
Loans
 
Purchased
Loan
Pools
 
Total
Three Months Ended
September 30, 2017
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Balance, June 30, 2017
$
3,302

 
$
3,756

 
$
7,869

 
$
5,605

 
$
1,155

 
$
1,791

 
$
1,623

 
$
25,101

Provision for loan losses
910

 
(587
)
 
68

 
127

 
670

 
745

 
(146
)
 
1,787

Loans charged off
(1,091
)
 
(1
)
 
(18
)
 
(852
)
 
(320
)
 
(161
)
 
—

 
(2,443
)
Recoveries of loans previously charged off
409

 
126

 
26

 
56

 
17

 
887

 
—

 
1,521

Balance, September 30, 2017
$
3,530

 
$
3,294

 
$
7,945

 
$
4,936

 
$
1,522

 
$
3,262

 
$
1,477

 
$
25,966

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended
September 30, 2017:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Balance, December 31, 2016
$
2,192

 
$
2,990

 
$
7,662

 
$
6,786

 
$
827

 
$
1,626

 
$
1,837

 
$
23,920

Provision for loan losses
2,535

 
155

 
540

 
(9
)
 
1,539

 
1,428

 
(360
)
 
5,828

Loans charged off
(1,896
)
 
(95
)
 
(413
)
 
(2,031
)
 
(922
)
 
(1,472
)
 
—

 
(6,829
)
Recoveries of loans previously charged off
699

 
244

 
156

 
190

 
78

 
1,680

 
—

 
3,047

Balance, September 30, 2017
$
3,530

 
$
3,294

 
$
7,945

 
$
4,936

 
$
1,522

 
$
3,262

 
$
1,477

 
$
25,966

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period-end allocation:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loans individually evaluated for impairment (1)
$
509

 
$
81

 
$
1,380

 
$
1,058

 
$
—

 
$
3,262

 
$
105

 
$
6,395

Loans collectively evaluated for impairment
3,021

 
3,213

 
6,565

 
3,878

 
1,522

 
—

 
1,372

 
19,571

Ending balance
$
3,530

 
$
3,294

 
$
7,945

 
$
4,936

 
$
1,522

 
$
3,262

 
$
1,477

 
$
25,966

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment (1)
$
3,204

 
$
627

 
$
10,512

 
$
8,636

 
$
—

 
$
32,032

 
$
915

 
$
55,926

Collectively evaluated for impairment
1,304,005

 
549,562

 
1,548,370

 
960,653

 
189,109

 
763,271

 
464,303

 
5,779,273

Acquired with deteriorated credit quality
—

 
—

 
—

 
—

 
—

 
121,823

 
—

 
121,823

Ending balance
$
1,307,209

 
$
550,189

 
$
1,558,882

 
$
969,289

 
$
189,109

 
$
917,126

 
$
465,218

 
$
5,957,022


(1) At September 30, 2017, loans individually evaluated for impairment includes all nonaccrual loans greater than $100,000 and all troubled debt restructurings greater than $100,000, including all troubled debt restructurings and not only those currently classified as troubled debt restructurings.
(dollars in thousands)
Commercial,
Financial and
Agricultural
 
Real Estate –
Construction and
Development
 
Real Estate –
Commercial and
Farmland
 
Real Estate –
Residential
 
Consumer
Installment
Loans and
Other
 
Purchased 
Loans
 
Purchased
Loan
Pools
 
Total
Twelve Months Ended
December 31, 2016
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Balance, January 1, 2016
$
1,144

 
$
5,009

 
$
7,994

 
$
4,760

 
$
1,574

 
$
—

 
$
581

 
$
21,062

Provision for loan losses
2,647

 
(1,921
)
 
107

 
2,757

 
(523
)
 
(232
)
 
1,256

 
4,091

Loans charged off
(1,999
)
 
(588
)
 
(708
)
 
(1,122
)
 
(351
)
 
(1,559
)
 
—

 
(6,327
)
Recoveries of loans previously charged off
400

 
490

 
269

 
391

 
127

 
3,417

 
—

 
5,094

Balance, December 31, 2016
$
2,192

 
$
2,990

 
$
7,662

 
$
6,786

 
$
827

 
$
1,626

 
$
1,837

 
$
23,920

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period-end allocation:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loans individually evaluated for impairment (1)
$
120

 
$
266

 
$
1,502

 
$
2,893

 
$
—

 
$
1,626

 
$
—

 
$
6,407

Loans collectively evaluated for impairment
2,072

 
2,724

 
6,160

 
3,893

 
827

 
—

 
1,837

 
17,513

Ending balance
$
2,192

 
$
2,990

 
$
7,662

 
$
6,786

 
$
827

 
$
1,626

 
$
1,837

 
$
23,920

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment (1)
$
501

 
$
659

 
$
12,423

 
$
12,697

 
$
—

 
$
34,141

 
$
—

 
$
60,421

Collectively evaluated for impairment
966,637

 
362,386

 
1,393,796

 
768,321

 
109,401

 
886,516

 
568,314

 
5,055,371

Acquired with deteriorated credit quality
—

 
—

 
—

 
—

 
—

 
148,534

 
—

 
148,534

Ending balance
$
967,138

 
$
363,045

 
$
1,406,219

 
$
781,018

 
$
109,401

 
$
1,069,191

 
$
568,314

 
$
5,264,326

 
(1) At December 31, 2016, loans individually evaluated for impairment includes all nonaccrual loans greater than $100,000 and all troubled debt restructurings greater than $100,000, including all troubled debt restructurings and not only those currently classified as troubled debt restructurings.
(dollars in thousands)
Commercial,
Financial and
Agricultural
 
Real Estate –
Construction and
Development
 
Real Estate –
Commercial and
Farmland
 
Real Estate –
Residential
 
Consumer
Installment
Loans and
Other
 
Purchased 
Loans
 
Purchased
Loan
Pools
 
Total
Three Months Ended
September 30, 2016
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Balance, June 30, 2016
$
1,667

 
$
3,599

 
$
7,459

 
$
4,263

 
$
2,160

 
$
1,387

 
$
1,199

 
$
21,734

Provision for loan losses
677

 
(521
)
 
(554
)
 
2,649

 
(1,595
)
 
(654
)
 
809

 
811

Loans charged off
(326
)
 
(60
)
 
—

 
(292
)
 
(74
)
 
(699
)
 
—

 
(1,451
)
Recoveries of loans previously charged off
119

 
131

 
13

 
40

 
78

 
1,488

 
—

 
1,869

Balance, September 30, 2016
$
2,137

 
$
3,149

 
$
6,918

 
$
6,660

 
$
569

 
$
1,522

 
$
2,008

 
$
22,963

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended
September 30, 2016:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Balance, December 31, 2015
$
1,144

 
$
5,009

 
$
7,994

 
$
4,760

 
$
1,574

 
$
—

 
$
581

 
$
21,062

Provision for loan losses
1,987

 
(2,010
)
 
(559
)
 
2,415

 
(932
)
 
53

 
1,427

 
2,381

Loans charged off
(1,273
)
 
(324
)
 
(708
)
 
(883
)
 
(192
)
 
(1,261
)
 
—

 
(4,641
)
Recoveries of loans previously charged off
279

 
474

 
191

 
368

 
119

 
2,730

 
—

 
4,161

Balance, September 30, 2016
$
2,137

 
$
3,149

 
$
6,918

 
$
6,660

 
$
569

 
$
1,522

 
$
2,008

 
$
22,963

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period-end allocation:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loans individually evaluated for impairment (1)
$
107

 
$
529

 
$
883

 
$
2,629

 
$
—

 
$
1,522

 
$
—

 
$
5,670

Loans collectively evaluated for impairment
2,030

 
2,620

 
6,035

 
4,031

 
569

 
—

 
2,008

 
17,293

Ending balance
$
2,137

 
$
3,149

 
$
6,918

 
$
6,660

 
$
569

 
$
1,522

 
$
2,008

 
$
22,963

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment (1)
$
424

 
$
1,154

 
$
11,699

 
$
11,571

 
$
—

 
$
34,991

 
$
—

 
$
59,839

Collectively evaluated for impairment
625,523

 
327,154

 
1,285,883

 
755,362

 
72,269

 
939,243

 
624,886

 
4,630,320

Acquired with deteriorated credit quality
—

 
—

 
—

 
—

 
—

 
155,147

 
—

 
155,147

Ending balance
$
625,947

 
$
328,308

 
$
1,297,582

 
$
766,933

 
$
72,269

 
$
1,129,381

 
$
624,886

 
$
4,845,306

 
(1) At September 30, 2016, loans individually evaluated for impairment includes all nonaccrual loans greater than $100,000 and all troubled debt restructurings greater than $100,000, including all troubled debt restructurings and not only those currently classified as troubled debt restructurings.