At December 31, 2018 and 2017, LHFI consisted of the following ($ in thousands):

Trustmark does not have any loan concentrations other than those reflected in the preceding table, which exceed 10% of total LHFI. At December 31, 2018, Trustmark’s geographic loan distribution was concentrated primarily in its five key market regions: Alabama, Florida, Mississippi, Tennessee and Texas. Accordingly, the ultimate collectability of a substantial portion of these loans is susceptible to changes in market conditions in these areas.

At December 31, 2018 and 2017, loans to certain executive officers and directors, including their immediate families and companies in which they are principal owners, totaled $49.0 million and $59.9 million, respectively. During 2018, $440.5 million of new loan advances were made, while repayments were $451.4 million. There were no increases in loans due to changes in executive officers and directors.

At December 31, 2018 and 2017, the carrying amounts of nonaccrual LHFI were $61.6 million and $67.6 million, respectively. Included in these amounts were $16.7 million and $23.2 million, respectively, of nonaccrual LHFI classified as TDRs. No material interest income was recognized in the income statement on nonaccrual LHFI for each of the years in the three-year period ended December 31, 2018.

The following tables provide an aging analysis of past due and nonaccrual LHFI by loan type at December 31, 2018 and 2017 ($ in thousands):

	December 31, 2018
	Past Due
					90 Days						Current
	30-59 Days		60-89 Days		or More (1)		Total		Nonaccrual		Loans		Total LHFI
Loans secured by real estate:
Construction, land development and other land	$	284	$	—	$	—	$	284	$	2,218	$	1,054,099	$	1,056,601
Secured by 1-4 family residential properties		8,600		1,700		569		10,869		14,718		1,799,905		1,825,492
Secured by nonfarm, nonresidential properties		1,887		—		—		1,887		9,621		2,209,406		2,220,914
Other real estate secured		197		99		—		296		927		542,597		543,820
Commercial and industrial loans		1,346		300		—		1,646		23,938		1,513,131		1,538,715
Consumer loans		1,800		353		287		2,440		205		179,803		182,448
State and other political subdivision loans		186		—		—		186		8,595		965,037		973,818
Other loans		83		—		—		83		1,402		492,575		494,060
Total	$	14,383	$	2,452	$	856	$	17,691	$	61,624	$	8,756,553	$	8,835,868

(1)	Past due 90 days or more but still accruing interest.

	December 31, 2017
	Past Due
					90 Days						Current
	30-59 Days		60-89 Days		or More (1)		Total		Nonaccrual		Loans		Total LHFI
Loans secured by real estate:
Construction, land development and other land	$	391	$	1	$	—	$	392	$	2,105	$	985,127	$	987,624
Secured by 1-4 family residential properties		6,412		2,084		1,917		10,413		19,022		1,645,876		1,675,311
Secured by nonfarm, nonresidential properties		2,319		256		—		2,575		12,608		2,178,640		2,193,823
Other real estate secured		—		—		—		—		212		517,744		517,956
Commercial and industrial loans		759		1,233		12		2,004		33,338		1,535,003		1,570,345
Consumer loans		2,141		255		242		2,638		135		169,145		171,918
State and other political subdivision loans		350		39		—		389		—		952,094		952,483
Other loans		18		4		—		22		155		500,330		500,507
Total	$	12,390	$	3,872	$	2,171	$	18,433	$	67,575	$	8,483,959	$	8,569,967

(1)	Past due 90 days or more but still accruing interest.

Trustmark’s individually evaluated impaired LHFI include all commercial nonaccrual relationships of $500 thousand or more, which are specifically reviewed for impairment and deemed impaired, and all LHFI classified as TDRs in accordance with FASB ASC Topic 310-10-50-20, and are primarily collateral dependent loans. Fair value estimates for collateral dependent loans are derived from appraised values based on the current market value or as is value of the collateral, normally from recently received and reviewed appraisals. Current appraisals are ordered on an annual basis based on the inspection date or more often if market conditions necessitate. Appraisals are obtained from state-certified appraisers and are based on certain assumptions, which may include construction or development status and the highest and best use of the property. These appraisals are reviewed by Trustmark’s Appraisal Review Department to ensure they are acceptable, and values are adjusted down for costs associated with asset disposal. Once this estimated net realizable value has been determined, the value used in the impairment assessment is updated. At the time a LHFI that has been specifically reviewed for impairment is deemed to be impaired, the full difference between book value and the most likely estimate of the collateral’s net realizable value is either charged off or a specific reserve is established. As subsequent events dictate and estimated net realizable values change, further adjustments may be necessary.

No material interest income was recognized in the accompanying consolidated statements of income on impaired LHFI for each of the years in the three-year period ended December 31, 2018.

At December 31, 2018 and 2017, individually evaluated for impaired LHFI consisted of the following ($ in thousands):

	December 31, 2018
	LHFI
	Unpaid		With No Related		With an		Total				Average
	Principal		Allowance		Allowance		Carrying		Related		Recorded
	Balance		Recorded		Recorded		Amount		Allowance		Investment
Loans secured by real estate:
Construction, land development and other land	$	1,794	$	1,528	$	24	$	1,552	$	—	$	1,738
Secured by 1-4 family residential properties		4,951		95		3,868		3,963		39		4,328
Secured by nonfarm, nonresidential properties		8,282		6,728		2,748		9,476		413		8,898
Other real estate secured		—		—		248		248		—		124
Commercial and industrial loans		37,786		12,893		17,824		30,717		4,334		26,725
Consumer loans		2		—		2		2		—		6
State and other political subdivision loans		8,688		4,079		4,516		8,595		516		4,297
Other loans		1,418		230		1,052		1,282		1,052		804
Total	$	62,921	$	25,553	$	30,282	$	55,835	$	6,354	$	46,920

	December 31, 2017
	LHFI
	Unpaid		With No Related		With an		Total				Average
	Principal		Allowance		Allowance		Carrying		Related		Recorded
	Balance		Recorded		Recorded		Amount		Allowance		Investment
Loans secured by real estate:
Construction, land development and other land	$	1,704	$	1,206	$	199	$	1,405	$	75	$	1,923
Secured by 1-4 family residential properties		6,031		160		4,576		4,736		1,331		4,693
Secured by nonfarm, nonresidential properties		15,205		10,027		396		10,423		165		8,321
Other real estate secured		—		—		—		—		—		—
Commercial and industrial loans		36,874		31,281		518		31,799		131		22,734
Consumer loans		17		—		17		17		—		9
State and other political subdivision loans		—		—		—		—		—		—
Other loans		556		—		556		556		41		325
Total	$	60,387	$	42,674	$	6,262	$	48,936	$	1,743	$	38,005

At December 31, 2018, 2017 and 2016, LHFI classified as TDRs totaled $28.2 million, $23.9 million and $14.5 million, respectively, and were primarily comprised of credits with interest-only payments for an extended period of time which totaled $23.8 million, $20.5 million and $9.8 million, respectively. The remaining TDRs at December 31, 2018, 2017 and 2016 resulted from bankruptcies or from payment or maturity extensions. Trustmark had $4.4 million of unused commitments on TDRs at December 31, 2018, compared to no material unused commitments on TDRs at December 31, 2017 and 2016.

For TDRs, Trustmark had a related loan loss allowance of $2.3 million at December 31, 2018, $458 thousand at December 31, 2017 and $2.2 million at December 31, 2016. LHFI classified as TDRs are charged down to the most likely fair value estimate less an estimated cost to sell for collateral dependent loans, which would approximate net realizable value. Specific charge-offs related to TDRs totaled $18.4 million, $127 thousand and $1.0 million for the years ended December 31, 2018, 2017 and 2016, respectively.

The following tables illustrate the impact of modifications classified as TDRs for the periods presented ($ in thousands):

	Year Ended December 31, 2018
Modifications Classified as TDRs	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Loans secured by real estate:
Construction, land development and other land		1	$	22	$	22
Secured by 1-4 family residential properties		23		2,102		1,660
Secured by nonfarm, nonresidential properties		2		1,780		1,780
Commercial and industrial loans		23		26,970		25,862
Consumer loans		3		4		4
Total		52	$	30,878	$	29,328

	Year Ended December 31, 2017
Modifications Classified as TDRs	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Loans secured by real estate:
Construction, land development and other land		1	$	341	$	325
Secured by 1-4 family residential properties		22		1,478		1,487
Secured by nonfarm, nonresidential properties		1		426		426
Commercial and industrial loans		8		12,836		12,836
Other loans		1		556		556
Total		33	$	15,637	$	15,630

	Year Ended December 31, 2016
Modifications Classified as TDRs	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Loans secured by real estate:
Construction, land development and other land		1	$	14	$	14
Secured by 1-4 family residential properties		18		1,386		1,391
Secured by nonfarm, nonresidential properties		2		717		717
Commercial and industrial loans		5		10,043		9,982
Consumer loans		1		2		2
Total		27	$	12,162	$	12,106

The table below includes the balances at default for TDRs modified within the last 12 months for which there was a payment default during the period ($ in thousands):

Trustmark’s TDRs have resulted primarily from allowing the borrower to pay interest-only for an extended period of time rather than from forgiveness. Accordingly, as shown above, these TDRs have a similar recorded investment for both the pre-modification and post-modification disclosure. Trustmark has utilized loans 90 days or more past due to define payment default in determining TDRs that have subsequently defaulted.

The following tables detail LHFI classified as TDRs by loan type at December 31, 2018, 2017 and 2016 ($ in thousands):

	December 31, 2018
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	24	$	24
Secured by 1-4 family residential properties		743		3,125		3,868
Secured by nonfarm, nonresidential properties		1,734		395		2,129
Commercial and industrial loans		9,007		12,620		21,627
Consumer loans		—		2		2
Other loans		—		540		540
Total TDRs	$	11,484	$	16,706	$	28,190

	December 31, 2017
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	199	$	199
Secured by 1-4 family residential properties		51		3,140		3,191
Secured by nonfarm, nonresidential properties		—		421		421
Commercial and industrial loans		53		19,434		19,487
Consumer loans		—		17		17
Other loans		556		—		556
Total TDRs	$	660	$	23,211	$	23,871

	December 31, 2016
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	405	$	405
Secured by 1-4 family residential properties		—		2,873		2,873
Secured by nonfarm, nonresidential properties		—		881		881
Commercial and industrial loans		53		10,266		10,319
Consumer loans		—		2		2
Total TDRs	$	53	$	14,427	$	14,480

Trustmark’s loan portfolio credit quality indicators focus on six key quality ratios that are compared against bank tolerances. The loan indicators are total classified outstanding, total criticized outstanding, nonperforming loans, nonperforming assets, delinquencies and net loan losses. Due to the homogenous nature of consumer loans, Trustmark does not assign a formal internal risk rating to each credit and therefore the criticized and classified measures are primarily composed of commercial loans.

In addition to monitoring portfolio credit quality indicators, Trustmark also measures how effectively the lending process is being managed and risks are being identified. As part of an ongoing monitoring process, Trustmark grades the commercial portfolio as it relates to credit file completion and financial statement exceptions, underwriting, collateral documentation and compliance with law as shown below:

Trustmark has established a loan grading system that consists of ten individual credit risk grades (risk ratings) that encompass a range from loans where the expectation of loss is negligible to loans where loss has been established. The model is based on the risk of default for an individual credit and establishes certain criteria to delineate the level of risk across the ten unique credit risk grades. Credit risk grade definitions are as follows:

By definition, credit risk grades special mention (RR 7), substandard (RR 8), doubtful (RR 9) and loss (RR 10) are criticized loans while substandard (RR 8), doubtful (RR 9) and loss (RR 10) are classified loans. These definitions are standardized by all bank regulatory agencies and are generally equally applied to each individual lending institution. The remaining credit risk grades are considered pass credits and are solely defined by Trustmark.

Each commercial loan is assigned a credit risk grade that is an indication for the likelihood of default and is not a direct indication of loss at default. The loss at default aspect of the subject risk ratings is neither uniform across the nine primary commercial loan groups or constant between the geographic areas. To account for the variance in the loss at default aspects of the risk rating system, the loss expectations for each risk rating are integrated into the allowance for loan loss methodology where the calculated loss at default is allotted for each individual risk rating with respect to the individual loan group and unique geographic area. The loss at default aspect of the reserve methodology is calculated each quarter as a component of the overall reserve factor for each risk grade by loan group and geographic area.

To enhance this process, nonaccrual relationships of $500 thousand or more that are rated in one of the classified categories are routinely reviewed to establish an expectation of loss, if any, and if such examination indicates that the level of reserve is not adequate to cover the expectation of loss, a special reserve or impairment is generally applied.

The distribution of the losses is accomplished by means of a loss distribution model that assigns a loss factor to each risk rating (1 to 9) in each commercial loan pool. A factor is not applied to risk rate 10 as loans classified as losses are charged off within the period that the loss is determined and are not carried on Trustmark’s books over quarter-end.

The expected loss distribution is spread across the various risk ratings by the perceived level of risk for loss. The nine grade scale described above ranges from a negligible risk of loss to an identified loss across its breadth. The loss distribution factors are graduated through the scale on a basis proportional to the degree of risk that appears manifest in each individual rating and assumes that migration through the loan grading system will occur.

Each loan officer assesses the appropriateness of the internal risk rating assigned to their credits on an ongoing basis. Trustmark’s Asset Review area conducts independent credit quality reviews of the majority of Trustmark’s commercial loan portfolio both on the underlying credit quality of each individual loan portfolio as well as the adherence to Trustmark’s loan policy and the loan administration process. In general, Asset Review conducts reviews of each lending area within a six to eighteen month window depending on the overall credit quality results of the individual area.

In addition to the ongoing internal risk rate monitoring described above, Trustmark’s Credit Quality Review Committee meets monthly and performs a review of all loans of $100 thousand or more that are either delinquent thirty days or more or on nonaccrual. This review includes recommendations regarding risk ratings, accrual status, charge-offs and appropriate servicing officer as well as evaluation of problem credits for determination of TDRs. Quarterly, the Credit Quality Review Committee reviews and modifies continuous action plans for all credits risk rated seven or worse for relationships of $100 thousand or more.

In addition, a semi-annual review of significant development, commercial construction, multi-family and non-owner occupied projects is performed. This review assesses each particular project with respect to location, project valuations, progress of completion, leasing status, current financial information, rents, operating expenses, cash flow, adherence to budget and projections and other information as applicable. Summary results are reviewed by Senior and Regional Credit Officers in addition to the Chief Credit Officer with a determination made as to the appropriateness of existing risk ratings and accrual status.

Consumer LHFI that do not meet a minimum custom credit score are reviewed quarterly by Management. The Retail Credit Review Committee reviews the volume and percentage of approvals that did not meet the minimum passing custom score by region, individual location, and officer to ensure that Trustmark continues to originate quality loans.

Trustmark monitors the levels and severity of past due consumer LHFI on a daily basis through its collection activities. A detailed assessment of consumer LHFI delinquencies is performed monthly at both a product and market level by delivery channel, which incorporates the perceived level of risk at time of underwriting.

The tables below present LHFI by loan type and credit quality indicator at December 31, 2018 and 2017 ($ in thousands):

	December 31, 2018
	Commercial LHFI
	Pass -		Special Mention -		Substandard -		Doubtful -
	Categories 1-6		Category 7		Category 8		Category 9		Subtotal
Loans secured by real estate:
Construction, land development and other land	$	982,305	$	75	$	5,645	$	203	$	988,228
Secured by 1-4 family residential properties		123,191		216		2,731		229		126,367
Secured by nonfarm, nonresidential properties		2,182,106		1,250		37,025		473		2,220,854
Other real estate secured		537,958		323		4,610		—		542,891
Commercial and industrial loans		1,468,262		12,431		55,943		2,079		1,538,715
Consumer loans		—		—		—		—		—
State and other political subdivision loans		958,214		5,250		10,354		—		973,818
Other loans		460,568		17,842		10,323		49		488,782
Total	$	6,712,604	$	37,387	$	126,631	$	3,033	$	6,879,655

	Consumer LHFI
			Past Due		Past Due
	Current		30-89 Days		90 Days or More		Nonaccrual		Subtotal		Total LHFI
Loans secured by real estate:
Construction, land development and other land	$	67,913	$	124	$	—	$	336	$	68,373	$	1,056,601
Secured by 1-4 family residential properties		1,675,455		9,872		569		13,229		1,699,125		1,825,492
Secured by nonfarm, nonresidential properties		60		—		—		—		60		2,220,914
Other real estate secured		929		—		—		—		929		543,820
Commercial and industrial loans		—		—		—		—		—		1,538,715
Consumer loans		179,802		2,153		288		205		182,448		182,448
State and other political subdivision loans		—		—		—		—		—		973,818
Other loans		5,278		—		—		—		5,278		494,060
Total	$	1,929,437	$	12,149	$	857	$	13,770	$	1,956,213	$	8,835,868

	December 31, 2017
	Commercial LHFI
	Pass -		Special Mention -		Substandard -		Doubtful -
	Categories 1-6		Category 7		Category 8		Category 9		Subtotal
Loans secured by real estate:
Construction, land development and other land	$	922,563	$	316	$	3,780	$	222	$	926,881
Secured by 1-4 family residential properties		127,405		134		4,948		76		132,563
Secured by nonfarm, nonresidential properties		2,135,749		6,684		50,785		527		2,193,745
Other real estate secured		517,036		—		517		—		517,553
Commercial and industrial loans		1,437,590		28,780		103,089		886		1,570,345
Consumer loans		—		—		—		—		—
State and other political subdivision loans		936,420		5,850		10,213		—		952,483
Other loans		478,083		—		16,390		108		494,581
Total	$	6,554,846	$	41,764	$	189,722	$	1,819	$	6,788,151

	Consumer LHFI
			Past Due		Past Due
	Current		30-89 Days		90 Days or More		Nonaccrual		Subtotal		Total LHFI
Loans secured by real estate:
Construction, land development and other land	$	60,240	$	342	$	—	$	161	$	60,743	$	987,624
Secured by 1-4 family residential properties		1,516,691		7,874		1,809		16,374		1,542,748		1,675,311
Secured by nonfarm, nonresidential properties		78		—		—		—		78		2,193,823
Other real estate secured		403		—		—		—		403		517,956
Commercial and industrial loans		—		—		—		—		—		1,570,345
Consumer loans		169,146		2,396		242		134		171,918		171,918
State and other political subdivision loans		—		—		—		—		—		952,483
Other loans		5,926		—		—		—		5,926		500,507
Total	$	1,752,484	$	10,612	$	2,051	$	16,669	$	1,781,816	$	8,569,967

LHFS past due 90 days or more totaled $37.4 million and $35.5 million at December 31, 2018 and 2017, respectively.

Trustmark did not exercise its buy-back option on any delinquent loans serviced for GNMA during 2018 or 2017.

Trustmark’s allowance for loan loss methodology for commercial LHFI is based upon regulatory guidance from its primary regulator and GAAP. The methodology segregates the commercial purpose and commercial construction LHFI portfolios into nine separate loan types (or pools) which have similar characteristics such as repayment, collateral and risk profiles. The nine basic loan pools are further segregated into Trustmark’s five key market regions, Alabama, Florida, Mississippi, Tennessee and Texas, to take into consideration the uniqueness of each market. A 10-point risk rating system is utilized for each separate loan pool to apply a reserve factor consisting of quantitative and qualitative components to determine the needed allowance by each loan type. As a result, there are 450 risk rate factors for commercial loan types. The nine separate pools are shown below:

The quantitative factors of the allowance methodology reflect a twelve-quarter rolling average of net charge-offs by loan type within each key market region. This allows for a greater sensitivity to current trends, such as economic changes, as well as current loss profiles and creates a more accurate depiction of historical losses.

Each qualitative factor is converted to a scale ranging from 0 (No risk) to 100 (High Risk), other than the last two factors, which are applied on a dollar-for-dollar basis to ensure that the combination of such factors is proportional. The resulting ratings from the individual factors are weighted and summed to establish the weighted-average qualitative factor within each key market region.

The allowance for loan loss methodology segregates the consumer LHFI portfolio into homogeneous pools of loans that contain similar structure, repayment, collateral and risk profiles. These homogeneous pools of loans are shown below:

The historical loss experience for these pools is determined by calculating a 12-quarter rolling average of net charge-offs, which is applied to each pool to establish the quantitative aspect of the methodology. Where, in Management’s estimation, the calculated loss experience does not fully cover the anticipated loss for a pool, an estimate is also applied to each pool to establish the qualitative aspect of the methodology, which represents the perceived risks across the loan portfolio at the current point in time. This qualitative methodology utilizes five separate factors made up of unique components that when weighted and combined produce an estimated level of reserve for each of the loan pools. The five qualitative factors include the following:

The risk measure for each factor is converted to a scale ranging from 0 (No risk) to 100 (High Risk) to ensure that the combination of such factors is proportional. The determination of the risk measurement for each qualitative factor is done for all markets combined. The resulting estimated reserve factor is then applied to each pool.

The resulting ratings from the individual factors are weighted and summed to establish the weighted-average qualitative factor of a specific loan portfolio. This weighted-average qualitative factor is then applied over the five loan pools.

Trustmark’s loan policy dictates the guidelines to be followed in determining when a loan is charged off. Commercial purpose loans are charged off when a determination is made that the loan is uncollectible and continuance as a bankable asset is not warranted or an impairment evaluation indicates that a value adjustment is necessary. Consumer loans secured by 1-4 family residential real estate are generally charged off or written down when the credit becomes severely delinquent and the balance exceeds the fair value of the property less costs to sell. Non-real estate consumer purpose loans, both secured and unsecured, are generally charged off in full during the month in which the loan becomes 120 days past due. Credit card loans are generally charged off in full when the loan becomes 180 days past due.

The following tables detail the balance in the allowance for loan losses, LHFI allocated to each loan type segmented by the impairment evaluation methodology used at December 31, 2018 and 2017 ($ in thousands):

	December 31, 2018
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	7,390	$	7,390
Secured by 1-4 family residential properties		39		8,602		8,641
Secured by nonfarm, nonresidential properties		413		21,963		22,376
Other real estate secured		—		3,450		3,450
Commercial and industrial loans		4,334		23,025		27,359
Consumer loans		—		2,890		2,890
State and other political subdivision loans		516		474		990
Other loans		1,052		5,142		6,194
Total allowance for loan losses, LHFI	$	6,354	$	72,936	$	79,290

	December 31, 2017
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	75	$	7,790	$	7,865
Secured by 1-4 family residential properties		1,331		9,543		10,874
Secured by nonfarm, nonresidential properties		165		23,263		23,428
Other real estate secured		—		2,790		2,790
Commercial and industrial loans		131		22,720		22,851
Consumer loans		—		3,470		3,470
State and other political subdivision loans		—		789		789
Other loans		41		4,625		4,666
Total allowance for loan losses, LHFI	$	1,743	$	74,990	$	76,733

The following tables detail LHFI by loan type related to each balance in the allowance for loan losses, LHFI segregated by the impairment evaluation methodology used at December 31, 2018 and 2017 ($ in thousands):

	December 31, 2018
	LHFI Evaluated for Impairment
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	1,552	$	1,055,049	$	1,056,601
Secured by 1-4 family residential properties		3,963		1,821,529		1,825,492
Secured by nonfarm, nonresidential properties		9,476		2,211,438		2,220,914
Other real estate secured		248		543,572		543,820
Commercial and industrial loans		30,717		1,507,998		1,538,715
Consumer loans		2		182,446		182,448
State and other political subdivision loans		8,595		965,223		973,818
Other loans		1,282		492,778		494,060
Total	$	55,835	$	8,780,033	$	8,835,868

	December 31, 2017
	LHFI Evaluated for Impairment
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	1,405	$	986,219	$	987,624
Secured by 1-4 family residential properties		4,736		1,670,575		1,675,311
Secured by nonfarm, nonresidential properties		10,423		2,183,400		2,193,823
Other real estate secured		—		517,956		517,956
Commercial and industrial loans		31,799		1,538,546		1,570,345
Consumer loans		17		171,901		171,918
State and other political subdivision loans		—		952,483		952,483
Other loans		556		499,951		500,507
Total	$	48,936	$	8,521,031	$	8,569,967

Changes in the allowance for loan losses, LHFI were as follows for the periods presented ($ in thousands):

	Years Ended December 31,
	2018			2017			2016
Balance at beginning of period	$	76,733		$	71,265		$	67,619
Transfers (1)		1,554			—			—
Loans charged-off		(29,489	)		(21,147	)		(18,930	)
Recoveries		12,499			11,521			11,619
Net (charge-offs) recoveries		(16,990	)		(9,626	)		(7,311	)
Provision for loan losses, LHFI		17,993			15,094			10,957
Balance at end of period	$	79,290		$	76,733		$	71,265

(1)	The allowance for loan losses balance related to the remaining loans acquired in the Heritage acquisition on April 15, 2011, the Bay Bank merger on March 16, 2012 and the Reliance merger on April 7, 2017, which were transferred from acquired impaired loans to LHFI during 2018.

The following tables detail changes in the allowance for loan losses, LHFI by loan type for the years ended December 31, 2018 and 2017, respectively ($ in thousands):

	2018
	Balance									Provision for			Balance
	January 1,		Transfers (1)		Charge-offs			Recoveries		Loan Losses			December 31,
Loans secured by real estate:
Construction, land development and other land	$	7,865	$	584	$	(123	)	$	1,124	$	(2,060	)	$	7,390
Secured by 1-4 family residential properties		10,874		182		(1,629	)		646		(1,432	)		8,641
Secured by nonfarm, nonresidential properties		23,428		446		(1,184	)		133		(447	)		22,376
Other real estate secured		2,790		291		—			23		346			3,450
Commercial and industrial loans		22,851		46		(18,823	)		5,410		17,875			27,359
Consumer loans		3,470		5		(2,089	)		2,019		(515	)		2,890
State and other political subdivision loans		789		—		—			—		201			990
Other loans		4,666		—		(5,641	)		3,144		4,025			6,194
Total allowance for loan losses, LHFI	$	76,733	$	1,554	$	(29,489	)	$	12,499	$	17,993		$	79,290

(1)	The allowance for loan losses balance related to the remaining loans acquired in the Heritage acquisition on April 15, 2011, the Bay Bank merger on March 16, 2012 and the Reliance merger on April 7, 2017, which were transferred from acquired impaired loans to LHFI during 2018.

	2017
	Balance							Provision for			Balance
	January 1,		Charge-offs			Recoveries		Loan Losses			December 31,
Loans secured by real estate:
Construction, land development and other land	$	9,085	$	(79	)	$	1,428	$	(2,569	)	$	7,865
Secured by 1-4 family residential properties		10,347		(950	)		1,833		(356	)		10,874
Secured by nonfarm, nonresidential properties		20,967		(4,231	)		396		6,296			23,428
Other real estate secured		2,263		(5	)		69		463			2,790
Commercial and industrial loans		22,011		(8,286	)		2,578		6,548			22,851
Consumer loans		3,241		(2,546	)		1,938		837			3,470
State and other political subdivision loans		859		—			—		(70	)		789
Other loans		2,492		(5,050	)		3,279		3,945			4,666
Total allowance for loan losses, LHFI	$	71,265	$	(21,147	)	$	11,521	$	15,094		$	76,733