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LOANS
 6 Months Ended
Jun. 30, 2018
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 unrelated third parties consumer installment home improvement loans made to borrowers throughout the United States. As of June 30, 2018 and December 31, 2017, the net carrying value of these consumer installment home improvement loans was approximately $339.2 million and $273.7 million, respectively, and such loans are reported in the consumer installment loan category. 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 June 30, 2018 and December 31, 2017, the net carrying value of commercial insurance premium loans was approximately $524.3 million and $482.5 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 and warehouse space as well as farmland. 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 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)
June 30,
2018
 
December 31,
2017
Commercial, financial and agricultural
$
1,446,857

 
$
1,362,508

Real estate – construction and development
672,155

 
624,595

Real estate – commercial and farmland
1,640,411

 
1,535,439

Real estate – residential
1,245,370

 
1,009,461

Consumer installment
375,722

 
324,511

 
$
5,380,515

 
$
4,856,514


 
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 $2.81 billion and $861.6 million at June 30, 2018 and December 31, 2017, 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)
June 30,
2018
 
December 31,
2017
Commercial, financial and agricultural
$
397,517

 
$
74,378

Real estate – construction and development
268,443

 
65,513

Real estate – commercial and farmland
1,428,490

 
468,246

Real estate – residential
679,205

 
250,539

Consumer installment
38,855

 
2,919

 
$
2,812,510

 
$
861,595


 
A rollforward of purchased loans for the six months ended June 30, 2018 and 2017 is shown below:
(dollars in thousands)
June 30,
2018
 
June 30,
2017
Balance, January 1
$
861,595

 
$
1,069,191

Charge-offs, net of recoveries
(1,060
)
 
(1,860
)
Additions due to acquisitions
2,056,918

 
—

Accretion
4,340

 
6,165

Transfers to purchased other real estate owned
(556
)
 
(3,281
)
Payments received
(108,727
)
 
(119,716
)
Ending balance
$
2,812,510

 
$
950,499



The following is a summary of changes in the accretable discounts of purchased loans during the six months ended June 30, 2018 and 2017:
(dollars in thousands)
June 30,
2018
 
June 30,
2017
Balance, January 1
$
20,192

 
$
30,624

Additions due to acquisitions
29,318

 
—

Accretion
(4,340
)
 
(6,165
)
Accretable discounts removed due to charge-offs
(4
)
 
(13
)
Transfers between non-accretable and accretable discounts, net
1,332

 
807

Ending balance
$
46,498

 
$
25,253


 
Purchased loan pools are defined as groups of residential mortgage loans that were not acquired in bank acquisitions or FDIC-assisted transactions. As of June 30, 2018, purchased loan pools totaled $297.5 million and consisted of whole-loan residential mortgages on properties outside the Company’s markets, with principal balances totaling $294.6 million and $2.9 million of remaining purchase premium paid at acquisition. As of December 31, 2017, purchased loan pools totaled $328.2 million with principal balances totaling $324.4 million and $3.8 million of remaining purchase premium paid at acquisition.

At June 30, 2018, purchased loan pools included principal balances of $2.2 million risk-rated grade 7 (Substandard), while all other loans included in the purchased loan pools were performing current loans risk-rated grade 3 (Good Credit). At June 30, 2018, purchased loan pools included principal balances of $2.2 million on nonaccrual status and had no loans accounted for as troubled debt restructurings.

At December 31, 2017, purchased loan pools included principal balances of $904,000 risk-rated grade 7 (Substandard), while all other loans included in purchased loan pools were performing current risk-rated grade 3 (Good Credit). At December 31, 2017, purchased loan pools had no loans on nonaccrual status and had one loan accounted for as an accruing troubled debt restructuring with a principal balance of $904,000.

At June 30, 2018 and December 31, 2017, the Company had allocated $0.8 million and $1.1 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)
June 30,
2018
 
December 31,
2017
Commercial, financial and agricultural
$
1,741

 
$
1,306

Real estate – construction and development
648

 
554

Real estate – commercial and farmland
4,282

 
2,665

Real estate – residential
9,629

 
9,194

Consumer installment
513

 
483

 
$
16,813

 
$
14,202



The following table presents an analysis of purchased loans accounted for on a nonaccrual basis:
(dollars in thousands)
June 30,
2018
 
December 31,
2017
Commercial, financial and agricultural
$
1,602

 
$
813

Real estate – construction and development
9,541

 
3,139

Real estate – commercial and farmland
8,324

 
5,685

Real estate – residential
13,906

 
5,743

Consumer installment
184

 
48

 
$
33,557

 
$
15,428




The following table presents an analysis of past-due loans, excluding purchased past-due loans as of June 30, 2018 and December 31, 2017: 
(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
June 30, 2018
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial, financial and agricultural
$
4,981

 
$
6,251

 
$
8,500

 
$
19,732

 
$
1,427,125

 
$
1,446,857

 
$
7,279

Real estate – construction and development
757

 
434

 
359

 
1,550

 
670,605

 
672,155

 
—

Real estate – commercial and farmland
1,914

 
596

 
3,662

 
6,172

 
1,634,239

 
1,640,411

 
—

Real estate – residential
4,669

 
4,457

 
7,909

 
17,035

 
1,228,335

 
1,245,370

 
—

Consumer installment
1,436

 
662

 
482

 
2,580

 
373,142

 
375,722

 
142

Total
$
13,757

 
$
12,400

 
$
20,912

 
$
47,069

 
$
5,333,446

 
$
5,380,515

 
$
7,421

 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial, financial and agricultural
$
8,124

 
$
3,285

 
$
6,978

 
$
18,387

 
$
1,344,121

 
$
1,362,508

 
$
5,991

Real estate – construction and development
810

 
23

 
288

 
1,121

 
623,474

 
624,595

 
—

Real estate – commercial and farmland
869

 
787

 
1,940

 
3,596

 
1,531,843

 
1,535,439

 
—

Real estate – residential
8,772

 
2,941

 
7,041

 
18,754

 
990,707

 
1,009,461

 
—

Consumer installment
1,556

 
472

 
329

 
2,357

 
322,154

 
324,511

 
—

Total
$
20,131

 
$
7,508

 
$
16,576

 
$
44,215

 
$
4,812,299

 
$
4,856,514

 
$
5,991

 
The following table presents an analysis of purchased past-due loans as of June 30, 2018 and December 31, 2017: 
 
(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
June 30, 2018
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial, financial and agricultural
$
371

 
$
65

 
$
1,157

 
$
1,593

 
$
395,924

 
$
397,517

 
$
—

Real estate – construction and development
1,155

 
469

 
7,512

 
9,136

 
259,307

 
268,443

 
—

Real estate – commercial and farmland
2,736

 
88

 
2,014

 
4,838

 
1,423,652

 
1,428,490

 
—

Real estate – residential
9,609

 
2,640

 
8,682

 
20,931

 
658,274

 
679,205

 
—

Consumer installment
1,091

 
26

 
127

 
1,244

 
37,611

 
38,855

 
—

Total
$
14,962

 
$
3,288

 
$
19,492

 
$
37,742

 
$
2,774,768

 
$
2,812,510

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial, financial and agricultural
$
—

 
$
33

 
$
760

 
$
793

 
$
73,585

 
$
74,378

 
$
—

Real estate – construction and development
87

 
31

 
2,517

 
2,635

 
62,878

 
65,513

 
—

Real estate – commercial and farmland
1,190

 
701

 
2,724

 
4,615

 
463,631

 
468,246

 
—

Real estate – residential
2,722

 
1,585

 
2,320

 
6,627

 
243,912

 
250,539

 
—

Consumer installment
57

 
4

 
43

 
104

 
2,815

 
2,919

 
—

Total
$
4,056

 
$
2,354

 
$
8,364

 
$
14,774

 
$
846,821

 
$
861,595

 
$
—


 



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)
June 30,
2018
 
December 31,
2017
 
June 30,
2017
Nonaccrual loans
$
16,813

 
$
14,202

 
$
17,083

Troubled debt restructurings not included above
11,023

 
13,599

 
12,169

Total impaired loans
$
27,836

 
$
27,801

 
$
29,252

 
 
 
 
 
 
Quarter-to-date interest income recognized on impaired loans
$
185

 
$
1,010

 
$
320

Year-to-date interest income recognized on impaired loans
$
424

 
$
1,867

 
$
560

Quarter-to-date foregone interest income on impaired loans
$
221

 
$
197

 
$
247

Year-to-date foregone interest income on impaired loans
$
411

 
$
950

 
$
521

 
The following table presents an analysis of information pertaining to impaired loans, excluding purchased loans as of June 30, 2018, December 31, 2017 and June 30, 2017:
(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
 
Six
 Month
Average
Recorded
Investment
June 30, 2018
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial, financial and agricultural
$
2,297

 
$
1,210

 
$
568

 
$
1,778

 
$
87

 
$
1,683

 
$
1,571

Real estate – construction and development
850

 
679

 
119

 
798

 
1

 
746

 
821

Real estate – commercial and farmland
10,168

 
665

 
8,149

 
8,814

 
1,526

 
8,488

 
8,107

Real estate – residential
16,340

 
5,088

 
10,840

 
15,928

 
1,056

 
15,158

 
15,236

Consumer installment
548

 
518

 
—

 
518

 
—

 
507

 
500

Total
$
30,203

 
$
8,160

 
$
19,676

 
$
27,836

 
$
2,670

 
$
26,582

 
$
26,235

 
(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, 2017
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial, financial and agricultural
$
1,453

 
$
734

 
$
613

 
$
1,347

 
$
145

 
$
1,900

 
$
2,173

Real estate – construction and development
1,467

 
471

 
500

 
971

 
48

 
1,065

 
1,122

Real estate – commercial and farmland
10,646

 
729

 
8,873

 
9,602

 
1,047

 
8,910

 
11,053

Real estate – residential
17,416

 
4,828

 
10,565

 
15,393

 
1,005

 
14,294

 
14,930

Consumer installment
523

 
488

 
—

 
488

 
—

 
493

 
541

Total
$
31,505

 
$
7,250

 
$
20,551

 
$
27,801

 
$
2,245

 
$
26,662

 
$
29,819

(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
 
Six
 Month
Average
Recorded
Investment
June 30, 2017
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial, financial and agricultural
$
4,166

 
$
596

 
$
1,907

 
$
2,503

 
$
704

 
$
3,113

 
$
2,695

Real estate – construction and development
1,733

 
119

 
1,080

 
1,199

 
179

 
1,123

 
1,160

Real estate – commercial and farmland
11,885

 
5,940

 
4,923

 
10,863

 
1,436

 
11,156

 
11,730

Real estate – residential
13,569

 
2,154

 
12,017

 
14,171

 
1,994

 
15,946

 
16,186

Consumer installment
583

 
—

 
516

 
516

 
5

 
553

 
572

Total
$
31,936

 
$
8,809

 
$
20,443

 
$
29,252

 
$
4,318

 
$
31,891

 
$
32,343


 
The following is a summary of information pertaining to purchased impaired loans: 
 
As of and for the Period Ended
(dollars in thousands)
June 30,
2018
 
December 31,
2017
 
June 30,
2017
Nonaccrual loans
$
33,557

 
$
15,428

 
$
17,357

Troubled debt restructurings not included above
20,607

 
20,472

 
21,020

Total impaired loans
$
54,164

 
$
35,900

 
$
38,377

 
 
 
 
 
 
Quarter-to-date interest income recognized on impaired loans
$
280

 
$
379

 
$
374

Year-to-date interest income recognized on impaired loans
$
976

 
$
1,625

 
$
753

Quarter-to-date foregone interest income on impaired loans
$
280

 
$
281

 
$
265

Year-to-date foregone interest income on impaired loans
$
525

 
$
1,239

 
$
601


The following table presents an analysis of information pertaining to purchased impaired loans as of June 30, 2018, December 31, 2017 and June 30, 2017:
(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
 
Six
 Month
Average
Recorded
Investment
June 30, 2018
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial, financial and agricultural
$
5,945

 
$
1,522

 
$
80

 
$
1,602

 
$
1

 
$
582

 
$
659

Real estate – construction and development
16,715

 
7,210

 
3,359

 
10,569

 
521

 
4,962

 
4,693

Real estate – commercial and farmland
17,039

 
4,298

 
10,705

 
15,003

 
1,088

 
11,161

 
11,573

Real estate – residential
29,145

 
12,017

 
14,789

 
26,806

 
728

 
21,196

 
20,292

Consumer installment
232

 
184

 
—

 
184

 
—

 
62

 
57

Total
$
69,076

 
$
25,231

 
$
28,933

 
$
54,164

 
$
2,338

 
$
37,963

 
$
37,274

(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, 2017
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial, financial and agricultural
$
4,170

 
$
70

 
$
744

 
$
814

 
$
400

 
$
1,450

 
$
827

Real estate – construction and development
9,060

 
282

 
3,875

 
4,157

 
1,114

 
4,218

 
3,877

Real estate – commercial and farmland
14,596

 
1,224

 
11,173

 
12,397

 
906

 
12,840

 
15,329

Real estate – residential
20,867

 
6,574

 
11,910

 
18,484

 
821

 
19,002

 
20,743

Consumer installment
57

 
48

 
—

 
48

 
—

 
68

 
41

Total
$
48,750

 
$
8,198

 
$
27,702

 
$
35,900

 
$
3,241

 
$
37,578

 
$
40,817

(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
 
Six
 Month
Average
Recorded
Investment
June 30, 2017
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial, financial and agricultural
$
1,679

 
$
163

 
$
6

 
$
169

 
$
—

 
$
273

 
$
412

Real estate – construction and development
8,296

 
524

 
2,967

 
3,491

 
257

 
3,491

 
3,650

Real estate – commercial and farmland
16,987

 
2,418

 
11,616

 
14,034

 
771

 
16,167

 
16,989

Real estate – residential
24,219

 
7,647

 
13,009

 
20,656

 
763

 
21,262

 
21,904

Consumer installment
36

 
27

 
—

 
27

 
—

 
24

 
24

Total
$
51,217

 
$
10,779

 
$
27,598

 
$
38,377

 
$
1,791

 
$
41,217

 
$
42,979


 
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 1 – Prime Credit – This grade represents loans to the Company’s most creditworthy borrowers or loans that are secured by cash or cash equivalents.
 
Grade 2 – Strong Credit – This grade includes loans that exhibit one or more characteristics better than that of a Good Credit. Generally, the debt service coverage and borrower’s liquidity is materially better than required by the Company’s loan policy.
 
Grade 3 – Good Credit – This grade is assigned to loans to borrowers who exhibit satisfactory credit histories, contain acceptable loan structures and demonstrate ability to repay.

Grade 4 – Satisfactory Credit – This grade includes loans which exhibit all the characteristics of a Good 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 5 – Fair 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 6 – Other Assets 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 7 – 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 8 – 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 9 – 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 June 30, 2018 and December 31, 2017 (in thousands): 
Risk
Grade 
 
Commercial,
Financial and
Agricultural
 
Real Estate -
Construction and
Development
 
Real Estate -
Commercial and
Farmland
 
Real Estate -
Residential
 
Consumer
Installment
 
Total
June 30, 2018
1
 
$
530,629

 
$
—

 
$
5,231

 
$
17

 
$
10,025

 
$
545,902

2
 
562,728

 
931

 
51,713

 
45,015

 
108

 
660,495

3
 
168,418

 
57,107

 
885,659

 
1,076,090

 
24,429

 
2,211,703

4
 
141,404

 
601,601

 
642,917

 
94,518

 
340,444

 
1,820,884

5
 
22,144

 
5,265

 
16,819

 
7,840

 
1

 
52,069

6
 
6,189

 
4,381

 
22,530

 
4,936

 
114

 
38,150

7
 
15,338

 
2,870

 
15,542

 
16,954

 
601

 
51,305

8
 
7

 
—

 
—

 
—

 
—

 
7

9
 
—

 
—

 
—

 
—

 
—

 
—

Total
 
$
1,446,857

 
$
672,155

 
$
1,640,411

 
$
1,245,370

 
$
375,722

 
$
5,380,515

 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
1
 
$
539,899

 
$
—

 
$
5,790

 
$
47

 
$
9,243

 
$
554,979

2
 
568,557

 
1,005

 
68,507

 
49,742

 
670

 
688,481

3
 
125,740

 
59,318

 
966,391

 
843,178

 
39,352

 
2,033,979

4
 
117,358

 
552,918

 
454,506

 
88,537

 
274,462

 
1,487,781

5
 
330

 
4,474

 
6,408

 
5,781

 
3

 
16,996

6
 
5,236

 
4,207

 
15,108

 
5,339

 
185

 
30,075

7
 
5,381

 
2,673

 
18,729

 
16,837

 
596

 
44,216

8
 
7

 
—

 
—

 
—

 
—

 
7

9
 
—

 
—

 
—

 
—

 
—

 
—

Total
 
$
1,362,508

 
$
624,595

 
$
1,535,439

 
$
1,009,461

 
$
324,511

 
$
4,856,514


 
The following table presents the purchased loan portfolio by risk grade as of June 30, 2018 and December 31, 2017 (in thousands):       
Risk
Grade 
 
Commercial,
Financial and
Agricultural
 
Real Estate -
Construction and
Development
 
Real Estate -
Commercial and
Farmland
 
Real Estate -
Residential
 
Consumer
Installment
 
Total
June 30, 2018
1
 
$
54,608

 
$
—

 
$
—

 
$
—

 
$
575

 
$
55,183

2
 
36,766

 
—

 
7,494

 
95,222

 
201

 
139,683

3
 
54,774

 
21,334

 
302,001

 
69,889

 
1,319

 
449,317

4
 
193,836

 
224,596

 
993,807

 
459,944

 
35,960

 
1,908,143

5
 
39,040

 
5,990

 
69,624

 
20,627

 
—

 
135,281

6
 
14,246

 
5,261

 
18,401

 
7,132

 
55

 
45,095

7
 
4,247

 
11,262

 
37,163

 
26,391

 
745

 
79,808

8
 
—

 
—

 
—

 
—

 
—

 
—

9
 
—

 
—

 
—

 
—

 
—

 
—

Total
 
$
397,517

 
$
268,443

 
$
1,428,490

 
$
679,205

 
$
38,855

 
$
2,812,510

 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
1
 
$
3,358

 
$
—

 
$
—

 
$
—

 
$
606

 
$
3,964

2
 
4,541

 
—

 
5,047

 
91,270

 
240

 
101,098

3
 
8,517

 
13,014

 
186,187

 
50,988

 
1,166

 
259,872

4
 
43,085

 
39,877

 
230,570

 
70,837

 
711

 
385,080

5
 
—

 
2,306

 
6,081

 
11,349

 
—

 
19,736

6
 
13,718

 
4,076

 
13,637

 
5,637

 
53

 
37,121

7
 
1,159

 
6,240

 
26,724

 
20,458

 
143

 
54,724

8
 
—

 
—

 
—

 
—

 
—

 
—

9
 
—

 
—

 
—

 
—

 
—

 
—

Total
 
$
74,378

 
$
65,513

 
$
468,246

 
$
250,539

 
$
2,919

 
$
861,595


 

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 six months of 2018 and 2017 totaling $50.0 million and $16.2 million, respectively, under such parameters.
 
As of June 30, 2018 and December 31, 2017, the Company had a balance of $12.4 million and $15.6 million, respectively, in troubled debt restructurings, excluding purchased loans. The Company has recorded $0.8 million and $2.8 million in previous charge-offs on such loans at June 30, 2018 and December 31, 2017, respectively. The Company’s balance in the allowance for loan losses allocated to such troubled debt restructurings was $0.8 million and $1.4 million at June 30, 2018 and December 31, 2017, respectively. At June 30, 2018, the Company did not have any commitments to lend additional funds to debtors whose terms have been modified in troubled restructurings.
 
During the six months ended June 30, 2018 and 2017, the Company modified loans as troubled debt restructurings, excluding purchased loans, with principal balances of $1.8 million and $1.2 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 six months ended June 30, 2018 and 2017: 
 
June 30, 2018
 
June 30, 2017
Loan Class
#
 
Balance
(in thousands)
 
#
 
Balance
(in thousands)
Commercial, financial and agricultural
6
 
$
238

 
—
 
$
—

Real estate – construction and development
1
 
3

 
—
 
—

Real estate – commercial and farmland
1
 
302

 
4
 
1,062

Real estate – residential
8
 
1,189

 
1
 
77

Consumer installment
6
 
38

 
6
 
31

Total
22
 
$
1,770

 
11
 
$
1,170


 
Troubled debt restructurings, excluding purchased loans, with an outstanding balance of $1.1 million and $1.0 million defaulted during the six months ended June 30, 2018 and 2017, 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 six months ended June 30, 2018 and 2017: 
 
June 30, 2018
 
June 30, 2017
Loan Class
#
 
Balance
(in thousands)
 
#
 
Balance
(in thousands)
Commercial, financial and agricultural
—
 
$
—

 
2
 
$
49

Real estate – construction and development
—
 
—

 
—
 
—

Real estate – commercial and farmland
4
 
11

 
4
 
362

Real estate – residential
18
 
1,081

 
9
 
554

Consumer installment
—
 
—

 
7
 
27

Total
22
 
$
1,092

 
22
 
$
992


 
The following table presents the amount of troubled debt restructurings by loan class, excluding purchased loans, classified separately as accrual and nonaccrual at June 30, 2018 and December 31, 2017: 
June 30, 2018
Accruing Loans
 
Non-Accruing Loans
Loan Class
#
 
Balance
(in thousands)
 
#
 
Balance
(in thousands)
Commercial, financial and agricultural
4
 
$
38

 
14
 
$
330

Real estate – construction and development
4
 
150

 
3
 
30

Real estate – commercial and farmland
16
 
4,531

 
5
 
196

Real estate – residential
77
 
6,299

 
16
 
709

Consumer installment
3
 
5

 
31
 
102

Total
104
 
$
11,023

 
69
 
$
1,367

December 31, 2017
Accruing Loans
 
Non-Accruing Loans
Loan Class
#
 
Balance
(in thousands)
 
#
 
Balance
(in thousands)
Commercial, financial and agricultural
4
 
$
41

 
12
 
$
120

Real estate – construction and development
6
 
417

 
2
 
34

Real estate – commercial and farmland
17
 
6,937

 
5
 
204

Real estate – residential
74
 
6,199

 
18
 
1,508

Consumer installment
4
 
5

 
33
 
98

Total
105
 
$
13,599

 
70
 
$
1,964


 
As of June 30, 2018 and December 31, 2017, the Company had a balance of $24.3 million and $24.9 million, respectively, in troubled debt restructurings included in purchased loans. The Company has recorded $1.7 million and $1.2 million in previous charge-offs on such loans at June 30, 2018 and December 31, 2017, respectively. At June 30, 2018, the Company did not have any commitments to lend additional funds to debtors whose terms have been modified in troubled restructurings.
 
During the six months ended June 30, 2018 and 2017, the Company modified purchased loans as troubled debt restructurings, with principal balances of $991,000 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 six months ended June 30, 2018 and 2017: 
 
June 30, 2018
 
June 30, 2017
Loan Class
#
 
Balance
(in thousands)
 
#
 
Balance
(in thousands)
Commercial, financial and agricultural
1
 
$
6

 
1
 
$
6

Real estate – construction and development
—
 
—

 
—
 
—

Real estate – commercial and farmland
—
 
—

 
4
 
1,323

Real estate – residential
11
 
985

 
4
 
578

Consumer installment
—
 
—

 
—
 
—

Total
12
 
$
991

 
9
 
$
1,907


 
Troubled debt restructurings included in purchased loans with an outstanding balance of $1.6 million and $0.4 million defaulted during the six months ended June 30, 2018 and 2017, 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 six months ended June 30, 2018 and 2017:
 
June 30, 2018
 
June 30, 2017
Loan Class
#
 
Balance
(in thousands)
 
#
 
Balance
(in thousands)
Commercial, financial and agricultural
—
 
$
—

 
1
 
$
6

Real estate – construction and development
—
 
—

 
—
 
—

Real estate – commercial and farmland
—
 
—

 
1
 
226

Real estate – residential
21
 
1,580

 
4
 
138

Consumer installment
—
 
—

 
1
 
3

Total
21
 
$
1,580

 
7
 
$
373


 
The following table presents the amount of troubled debt restructurings by loan class of purchased loans, classified separately as accrual and nonaccrual at June 30, 2018 and December 31, 2017. 
June 30, 2018
Accruing Loans
 
Non-Accruing Loans
Loan Class
#
 
Balance
(in thousands)
 
#
 
Balance
(in thousands)
Commercial, financial and agricultural
—
 
$
—

 
4
 
$
21

Real estate – construction and development
4
 
1,028

 
6
 
308

Real estate – commercial and farmland
14
 
6,679

 
8
 
2,161

Real estate – residential
122
 
12,900

 
20
 
1,241

Consumer installment
—
 
—

 
2
 
3

Total
140
 
$
20,607

 
40
 
$
3,734

December 31, 2017
Accruing Loans
 
Non-Accruing Loans
Loan Class
#
 
Balance
(in thousands)
 
#
 
Balance
(in thousands)
Commercial, financial and agricultural
—
 
$
—

 
3
 
$
16

Real estate – construction and development
3
 
1,018

 
6
 
340

Real estate – commercial and farmland
14
 
6,713

 
10
 
2,582

Real estate – residential
117
 
12,741

 
25
 
1,462

Consumer installment
—
 
—

 
2
 
5

Total
134
 
$
20,472

 
46
 
$
4,405


 
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. Commercial insurance premium finance loans, overdraft protection loans, and certain residential mortgage loans and consumer 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 $1,000,000, as well as selective sampling of loans below this threshold. 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 9 (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 six-month period ended June 30, 2018, the year ended December 31, 2017 and the three and six-month period ended June 30, 2017. 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
 
Purchased 
Loans
 
Purchased
Loan
Pools
 
Total
Three Months Ended
June 30, 2018
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Balance, March 31, 2018
$
3,621

 
$
3,572

 
$
8,072

 
$
4,947

 
$
2,172

 
$
2,822

 
$
994

 
$
26,200

Provision for loan losses
7,276

 
235

 
132

 
364

 
1,427

 
(106
)
 
(218
)
 
9,110

Loans charged off
(3,744
)
 
(20
)
 
—

 
(204
)
 
(839
)
 
(910
)
 
—

 
(5,717
)
Recoveries of loans previously charged off
1,247

 
2

 
11

 
29

 
117

 
533

 
—

 
1,939

Balance, June 30, 2018
$
8,400

 
$
3,789

 
$
8,215

 
$
5,136

 
$
2,877

 
$
2,339

 
$
776

 
$
31,532

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended
June 30, 2018
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Balance, December 31, 2017
$
3,631

 
$
3,629

 
$
7,501

 
$
4,786

 
$
1,916

 
$
3,253

 
$
1,075

 
$
25,791

Provision for loan losses
8,059

 
64

 
821

 
541

 
2,578

 
(853
)
 
(299
)
 
10,911

Loans charged off
(5,193
)
 
(20
)
 
(142
)
 
(402
)
 
(1,801
)
 
(1,031
)
 
—

 
(8,589
)
Recoveries of loans previously charged off
1,903

 
116

 
35

 
211

 
184

 
970

 
—

 
3,419

Balance, June 30, 2018
$
8,400

 
$
3,789

 
$
8,215

 
$
5,136

 
$
2,877

 
$
2,339

 
$
776

 
$
31,532

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period-end allocation:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loans individually evaluated for impairment (1)
$
5,003

 
$
1

 
$
1,526

 
$
1,056

 
$
—

 
$
2,339

 
$
1

 
$
9,926

Loans collectively evaluated for impairment
3,397

 
3,788

 
6,689

 
4,080

 
2,877

 
—

 
775

 
21,606

Ending balance
$
8,400

 
$
3,789

 
$
8,215

 
$
5,136

 
$
2,877

 
$
2,339

 
$
776

 
$
31,532

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment (1)
$
10,881

 
$
119

 
$
8,149

 
$
10,840

 
$
—

 
$
29,041

 
$
2,196

 
$
61,226

Collectively evaluated for impairment
1,435,976

 
672,036

 
1,632,262

 
1,234,530

 
375,722

 
2,656,722

 
295,313

 
8,302,561

Acquired with deteriorated credit quality
—

 
—

 
—

 
—

 
—

 
126,747

 
—

 
126,747

Ending balance
$
1,446,857

 
$
672,155

 
$
1,640,411

 
$
1,245,370

 
$
375,722

 
$
2,812,510

 
$
297,509

 
$
8,490,534


(1) At June 30, 2018, 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
 
Purchased 
Loans
 
Purchased
Loan
Pools
 
Total
Twelve Months Ended
December 31, 2017
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Balance, December 31, 2016
$
2,192

 
$
2,990

 
$
7,662

 
$
6,786

 
$
827

 
$
1,626

 
$
1,837

 
$
23,920

Provision for loan losses
3,019

 
488

 
508

 
(86
)
 
2,591

 
2,606

 
(762
)
 
8,364

Loans charged off
(2,850
)
 
(95
)
 
(853
)
 
(2,151
)
 
(1,618
)
 
(2,900
)
 
—

 
(10,467
)
Recoveries of loans previously charged off
1,270

 
246

 
184

 
237

 
116

 
1,921

 
—

 
3,974

Balance, December 31, 2017
$
3,631

 
$
3,629

 
$
7,501

 
$
4,786

 
$
1,916

 
$
3,253

 
$
1,075

 
$
25,791

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period-end allocation:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loans individually evaluated for impairment (1)
$
465

 
$
48

 
$
1,047

 
$
1,028

 
$
—

 
$
3,253

 
$
177

 
$
6,018

Loans collectively evaluated for impairment
3,166

 
3,581

 
6,454

 
3,758

 
1,916

 
—

 
898

 
19,773

Ending balance
$
3,631

 
$
3,629

 
$
7,501

 
$
4,786

 
$
1,916

 
$
3,253

 
$
1,075

 
$
25,791

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment (1)
$
2,971

 
$
500

 
$
8,873

 
$
10,818

 
$
—

 
$
28,165

 
$
904

 
$
52,231

Collectively evaluated for impairment
1,359,537

 
624,095

 
1,526,566

 
998,643

 
324,511

 
718,447

 
327,342

 
5,879,141

Acquired with deteriorated credit quality
—

 
—

 
—

 
—

 
—

 
114,983

 
—

 
114,983

Ending balance
$
1,362,508

 
$
624,595

 
$
1,535,439

 
$
1,009,461

 
$
324,511

 
$
861,595

 
$
328,246

 
$
6,046,355

 
(1) At December 31, 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
 
Purchased 
Loans
 
Purchased
Loan
Pools
 
Total
Three Months Ended
June 30, 2017
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Balance, March 31, 2017
$
2,798

 
$
3,597

 
$
7,879

 
$
5,840

 
$
854

 
$
2,196

 
$
2,086

 
$
25,250

Provision for loan losses
984

 
102

 
255

 
655

 
695

 
(23
)
 
(463
)
 
2,205

Loans charged off
(701
)
 
(41
)
 
(386
)
 
(963
)
 
(438
)
 
(755
)
 
—

 
(3,284
)
Recoveries of loans previously charged off
221

 
98

 
121

 
73

 
44

 
373

 
—

 
930

Balance, June 30, 2017
$
3,302

 
$
3,756

 
$
7,869

 
$
5,605

 
$
1,155

 
$
1,791

 
$
1,623

 
$
25,101

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended
June 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
1,625

 
742

 
472

 
(136
)
 
869

 
683

 
(214
)
 
4,041

Loans charged off
(805
)
 
(94
)
 
(395
)
 
(1,179
)
 
(602
)
 
(1,311
)
 
—

 
(4,386
)
Recoveries of loans previously charged off
290

 
118

 
130

 
134

 
61

 
793

 
—

 
1,526

Balance, June 30, 2017
$
3,302

 
$
3,756

 
$
7,869

 
$
5,605

 
$
1,155

 
$
1,791

 
$
1,623

 
$
25,101

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period-end allocation:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loans individually evaluated for impairment (1)
$
691

 
$
174

 
$
1,437

 
$
1,748

 
$
—

 
$
1,791

 
$
180

 
$
6,021

Loans collectively evaluated for impairment
2,611

 
3,582

 
6,432

 
3,857

 
1,155

 
—

 
1,443

 
19,080

Ending balance
$
3,302

 
$
3,756

 
$
7,869

 
$
5,605

 
$
1,155

 
$
1,791

 
$
1,623

 
$
25,101

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment (1)
$
2,418

 
$
636

 
$
10,814

 
$
8,282

 
$
—

 
$
27,598

 
$
918

 
$
50,666

Collectively evaluated for impairment
1,216,215

 
486,222

 
1,508,188

 
848,787

 
148,666

 
794,706

 
489,196

 
5,491,980

Acquired with deteriorated credit quality
—

 
—

 
—

 
—

 
—

 
128,195

 
—

 
128,195

Ending balance
$
1,218,633

 
$
486,858

 
$
1,519,002

 
$
857,069

 
$
148,666

 
$
950,499

 
$
490,114

 
$
5,670,841

 
(1) At June 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.