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Purchased Loans
 3 Months Ended
Mar. 31, 2017
Receivables [Abstract]  
Purchased Loans
Non Purchased Loans
(In Thousands, Except Number of Loans)

For purposes of this Note 4, all references to “loans” mean non purchased loans.

The following is a summary of non purchased loans and leases as of the dates presented:
 
 
March 31,
2017
 
December 31, 2016
Commercial, financial, agricultural
$
626,237

 
$
589,290

Lease financing
50,462

 
49,250

Real estate – construction
378,061

 
483,926

Real estate – 1-4 family mortgage
1,485,663

 
1,425,730

Real estate – commercial mortgage
2,203,639

 
2,075,137

Installment loans to individuals
92,669

 
92,648

Gross loans
4,836,731

 
4,715,981

Unearned income
(2,646
)
 
(2,409
)
Loans, net of unearned income
4,834,085

 
4,713,572



Past Due and Nonaccrual Loans
Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Generally, the recognition of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Consumer and other retail loans are typically charged-off no later than the time the loan is 120 days past due. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due. All interest accrued for the current year, but not collected, for loans that are placed on nonaccrual status or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return 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.
The following table provides an aging of past due and nonaccrual loans, segregated by class, as of the dates presented:
 
 
Accruing Loans
 
Nonaccruing Loans
 
 
 
30-89 Days
Past Due
 
90 Days
or More
Past Due
 
Current
Loans
 
Total
Loans
 
30-89 Days
Past Due
 
90 Days
or More
Past Due
 
Current
Loans
 
Total
Loans
 
Total
Loans
March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
300

 
$
59

 
$
623,693

 
$
624,052

 
$
467

 
$
1,407

 
$
311

 
$
2,185

 
$
626,237

Lease financing
181

 
—

 
50,281

 
50,462

 
—

 
—

 
—

 
—

 
50,462

Real estate – construction
231

 
—

 
377,830

 
378,061

 
—

 
—

 
—

 
—

 
378,061

Real estate – 1-4 family mortgage
4,234

 
718

 
1,476,098

 
1,481,050

 
88

 
1,848

 
2,677

 
4,613

 
1,485,663

Real estate – commercial mortgage
2,435

 
1,315

 
2,194,109

 
2,197,859

 
—

 
1,892

 
3,888

 
5,780

 
2,203,639

Installment loans to individuals
346

 
82

 
92,189

 
92,617

 


 
52

 
—

 
52

 
92,669

Unearned income


 


 
(2,646
)
 
(2,646
)
 


 


 


 
—

 
(2,646
)
Total
$
7,727

 
$
2,174

 
$
4,811,554

 
$
4,821,455

 
$
555

 
$
5,199

 
$
6,876

 
$
12,630

 
$
4,834,085

December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
811

 
$
720

 
$
586,730

 
$
588,261

 
$
—

 
$
932

 
$
97

 
$
1,029

 
$
589,290

Lease financing
193

 
—

 
48,919

 
49,112

 
—

 
138

 
—

 
138

 
49,250

Real estate – construction
995

 
—

 
482,931

 
483,926

 
—

 
—

 
—

 
—

 
483,926

Real estate – 1-4 family mortgage
6,189

 
1,136

 
1,414,254

 
1,421,579

 
161

 
1,222

 
2,768

 
4,151

 
1,425,730

Real estate – commercial mortgage
2,283

 
99

 
2,066,821

 
2,069,203

 
580

 
2,778

 
2,576

 
5,934

 
2,075,137

Installment loans to individuals
324

 
124

 
92,179

 
92,627

 
—

 
21

 
—

 
21

 
92,648

Unearned income
—

 
—

 
(2,409
)
 
(2,409
)
 
—

 
—

 
—

 
—

 
(2,409
)
Total
$
10,795

 
$
2,079

 
$
4,689,425

 
$
4,702,299

 
$
741

 
$
5,091

 
$
5,441

 
$
11,273

 
$
4,713,572


Impaired Loans
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Impairment is measured on a loan-by-loan basis for commercial, consumer and construction loans above a minimum dollar amount threshold by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are evaluated collectively for impairment. When the ultimate collectability of an impaired loan’s principal is in doubt, wholly or partially, all cash receipts are applied to principal. Once the recorded balance has been reduced to zero, future cash receipts are applied to interest income, to the extent any interest has been foregone, and then they are recorded as recoveries of any amounts previously charged-off. For impaired loans, a specific reserve is established to adjust the carrying value of the loan to its estimated net realizable value.
Loans accounted for under FASB Accounting Standards Codification Topic (“ASC”) 310-20, “Nonrefundable Fees and Other Cost” (“ASC 310-20”), and which are impaired loans recognized in conformity with ASC 310, “Receivables” (“ASC 310”), segregated by class, were as follows as of the dates presented:
 
 
Unpaid
Contractual
Principal
Balance
 
Recorded
Investment
With
Allowance
 
Recorded
Investment
With No
Allowance
 
Total
Recorded
Investment
 
Related
Allowance
March 31, 2017
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
2,788

 
$
2,185

 
$
—

 
$
2,185

 
$
147

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
—

 
—

 
—

 
—

 
—

Real estate – 1-4 family mortgage
12,679

 
10,999

 
—

 
10,999

 
1,085

Real estate – commercial mortgage
19,071

 
14,478

 
568

 
15,046

 
2,618

Installment loans to individuals
117

 
117

 
—

 
117

 
—

Total
$
34,655

 
$
27,779

 
$
568

 
$
28,347

 
$
3,850

December 31, 2016
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
1,577

 
$
1,175

 
$
—

 
$
1,175

 
$
136

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
517

 
517

 
—

 
517

 
1

Real estate – 1-4 family mortgage
10,823

 
9,207

 
—

 
9,207

 
1,091

Real estate – commercial mortgage
15,007

 
10,053

 
568

 
10,621

 
2,397

Installment loans to individuals
87

 
87

 
—

 
87

 
1

Totals
$
28,011

 
$
21,039

 
$
568

 
$
21,607

 
$
3,626



The following table presents the average recorded investment and interest income recognized on loans accounted for under ASC 310-20 and which are impaired loans for the periods presented:
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Three Months Ended
 
March 31, 2017
 
March 31, 2016
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Commercial, financial, agricultural
$
2,714

 
$
39

 
$
318

 
$
2

Lease financing
—

 
—

 
—

 
—

Real estate – construction
—

 
—

 
—

 
—

Real estate – 1-4 family mortgage
11,088

 
26

 
14,442

 
81

Real estate – commercial mortgage
15,314

 
106

 
15,031

 
122

Installment loans to individuals
118

 
—

 
67

 
1

Total
$
29,234

 
$
171

 
$
29,858

 
$
206



Restructured Loans
Restructured loans are those for which concessions have been granted to the borrower due to a deterioration of the borrower’s financial condition and which are performing in accordance with the new terms. Such concessions may include reduction in interest rates or deferral of interest or principal payments. In evaluating whether to restructure a loan, management analyzes the long-term financial condition of the borrower, including guarantor and collateral support, to determine whether the proposed concessions will increase the likelihood of repayment of principal and interest.
The following tables illustrate the impact of modifications classified as restructured loans and are segregated by class for the periods presented:
 
 
Number of
Loans
 
Pre-
Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
Three months ended March 31, 2017
 
 
 
 
 
Real estate – 1-4 family mortgage
2

 
177

 
174

Real estate – commercial mortgage
2

 
146

 
156

Total
4

 
$
323

 
$
330

Three months ended March 31, 2016
 
 
 
 
 
Real estate – 1-4 family mortgage
5

 
428

 
421

Total
5

 
$
428

 
$
421


 
 
 
 
 
 

Restructured loans not performing in accordance with their restructured terms that are either contractually 90 days or more past due or placed on nonaccrual status are reported as nonperforming loans. There was one restructured loan in the amount of $57 contractually 90 days past due or more and still accruing at March 31, 2017 and two restructured loans in the amount of $136 contractually 90 days past due or more and still accruing at March 31, 2016. The outstanding balance of restructured loans on nonaccrual status was $6,086 and $7,490 at March 31, 2017 and March 31, 2016, respectively.

Changes in the Company’s restructured loans are set forth in the table below:
 
 
Number of
Loans
 
Recorded
Investment
Totals at January 1, 2017
53

 
$
7,447

Additional loans with concessions
4

 
334

Reductions due to:
 
 
 
Reclassified as nonperforming
(1
)
 
(56
)
Paid in full
(2
)
 
(217
)
Charge-offs
(1
)
 
(250
)
Principal paydowns
—

 
(85
)
Totals at March 31, 2017
53

 
$
7,173



The allocated allowance for loan losses attributable to restructured loans was $241 and $919 at March 31, 2017 and March 31, 2016, respectively. The Company had $142 and no remaining availability under commitments to lend additional funds on these restructured loans at March 31, 2017 and March 31, 2016, respectively.

Credit Quality
For loans originated for commercial purposes, internal risk-rating grades are assigned by lending, credit administration or loan review personnel, based on an analysis of the financial and collateral strength and other credit attributes underlying each loan. Management analyzes the resulting ratings, as well as other external statistics and factors such as delinquency, to track the migration performance of the portfolio balances of these loans. Loan grades range between 1 and 9, with 1 being loans with the least credit risk. Loans that migrate toward the “Pass” grade (those with a risk rating between 1 and 4) or within the “Pass” grade generally have a lower risk of loss and therefore a lower risk factor applied to the loan balances. The “Watch” grade (those with a risk rating of 5) is utilized on a temporary basis for “Pass” grade loans where a significant adverse risk-modifying action is anticipated in the near term. Loans that migrate toward the “Substandard” grade (those with a risk rating between 6 and 9) generally have a higher risk of loss and therefore a higher risk factor applied to the related loan balances. The following table presents the Company’s loan portfolio by risk-rating grades as of the dates presented:
 
 
Pass
 
Watch
 
Substandard
 
Total
March 31, 2017
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
470,252

 
$
1,846

 
$
1,662

 
$
473,760

Lease financing
—

 
—

 
—

 
—

Real estate – construction
329,322

 
225

 
—

 
329,547

Real estate – 1-4 family mortgage
205,083

 
3,739

 
6,073

 
214,895

Real estate – commercial mortgage
1,860,714

 
16,266

 
13,053

 
1,890,033

Installment loans to individuals
—

 
—

 
—

 
—

Total
$
2,865,371

 
$
22,076

 
$
20,788

 
$
2,908,235

December 31, 2016
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
434,323

 
$
4,531

 
$
850

 
$
439,704

Lease financing
—

 
—

 
—

 
—

Real estate – construction
402,156

 
393

 
—

 
402,549

Real estate – 1-4 family mortgage
190,882

 
3,374

 
6,129

 
200,385

Real estate – commercial mortgage
1,734,523

 
18,118

 
13,088

 
1,765,729

Installment loans to individuals
—

 
—

 
—

 
—

Total
$
2,761,884

 
$
26,416

 
$
20,067

 
$
2,808,367



For portfolio balances of consumer, small balance consumer mortgage loans, such as 1-4 family mortgage loans and certain other loans originated for other than commercial purposes, allowance factors are determined based on historical loss ratios by portfolio for the preceding eight quarters and may be adjusted by other qualitative criteria. The following table presents the performing status of the Company’s loan portfolio not subject to risk rating as of the dates presented:
 
 
Performing
 
Non-
Performing
 
Total
March 31, 2017
 
 
 
 
 
Commercial, financial, agricultural
$
151,232

 
$
1,245

 
$
152,477

Lease financing
47,816

 
—

 
47,816

Real estate – construction
48,514

 
—

 
48,514

Real estate – 1-4 family mortgage
1,268,160

 
2,608

 
1,270,768

Real estate – commercial mortgage
312,431

 
1,175

 
313,606

Installment loans to individuals
92,535

 
134

 
92,669

Total
$
1,920,688

 
$
5,162

 
$
1,925,850

December 31, 2016
 
 
 
 
 
Commercial, financial, agricultural
$
148,499

 
$
1,087

 
$
149,586

Lease financing
46,703

 
138

 
46,841

Real estate – construction
81,377

 
—

 
81,377

Real estate – 1-4 family mortgage
1,222,816

 
2,529

 
1,225,345

Real estate – commercial mortgage
308,609

 
799

 
309,408

Installment loans to individuals
92,504

 
144

 
92,648

Total
$
1,900,508

 
$
4,697

 
$
1,905,205

Purchased Loans
(In Thousands, Except Number of Loans)

For purposes of this Note 5, all references to “loans” mean purchased loans.

The following is a summary of purchased loans as of the dates presented:
 
 
March 31,
2017
 
December 31, 2016
Commercial, financial, agricultural
$
115,229

 
$
128,200

Lease financing
—

 
—

Real estate – construction
35,673

 
68,753

Real estate – 1-4 family mortgage
431,904

 
452,447

Real estate – commercial mortgage
804,790

 
823,758

Installment loans to individuals
14,124

 
15,979

Gross loans
1,401,720

 
1,489,137

Unearned income
—

 
—

Loans, net of unearned income
1,401,720

 
1,489,137



Past Due and Nonaccrual Loans
The Company’s policies with respect to placing loans on nonaccrual status or charging off loans, and its accounting for interest on any such loans, are described above in Note 4, “Non Purchased Loans.”
The following table provides an aging of past due and nonaccrual loans, segregated by class, as of the dates presented:
 
 
Accruing Loans
 
Nonaccruing Loans
 
 
 
30-89 Days
Past Due
 
90 Days
or More
Past Due
 
Current
Loans
 
Total
Loans
 
30-89 Days
Past Due
 
90 Days
or More
Past Due
 
Current
Loans
 
Total
Loans
 
Total
Loans
March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
524

 
$
868

 
$
113,142

 
$
114,534

 
$
2

 
$
185

 
$
508

 
$
695

 
$
115,229

Lease financing
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Real estate – construction
159

 
—

 
35,514

 
35,673

 
—

 
—

 
—

 
—

 
35,673

Real estate – 1-4 family mortgage
4,407

 
4,110

 
419,028

 
427,545

 
319

 
2,414

 
1,626

 
4,359

 
431,904

Real estate – commercial mortgage
970

 
6,840

 
793,710

 
801,520

 
136

 
289

 
2,845

 
3,270

 
804,790

Installment loans to individuals
168

 
79

 
13,706

 
13,953

 
—

 
4

 
167

 
171

 
14,124

Unearned income
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
6,228

 
$
11,897

 
$
1,375,100

 
$
1,393,225

 
$
457

 
$
2,892

 
$
5,146

 
$
8,495

 
$
1,401,720

December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
823

 
$
990

 
$
125,417

 
$
127,230

 
$
260

 
$
381

 
$
329

 
$
970

 
$
128,200

Lease financing
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Real estate – construction
527

 
321

 
67,760

 
68,608

 
—

 
145

 
—

 
145

 
68,753

Real estate – 1-4 family mortgage
4,572

 
3,382

 
440,258

 
448,212

 
417

 
2,047

 
1,771

 
4,235

 
452,447

Real estate – commercial mortgage
3,045

 
6,112

 
808,886

 
818,043

 
—

 
2,661

 
3,054

 
5,715

 
823,758

Installment loans to individuals
96

 
10

 
15,591

 
15,697

 
—

 
156

 
126

 
282

 
15,979

Unearned income
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
9,063

 
$
10,815

 
$
1,457,912

 
$
1,477,790

 
$
677

 
$
5,390

 
$
5,280

 
$
11,347

 
$
1,489,137


Impaired Loans
The Company’s policies with respect to the determination of whether a loan is impaired and the treatment of such loans are described above in Note 4, “Non Purchased Loans.”
Loans accounted for under ASC 310-20, and which are impaired loans recognized in conformity with ASC 310, segregated by class, were as follows as of the dates presented:
 
 
Unpaid
Contractual
Principal
Balance
 
Recorded
Investment
With
Allowance
 
Recorded
Investment
With No
Allowance
 
Total
Recorded
Investment
 
Related
Allowance
March 31, 2017
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
567

 
$
121

 
$
423

 
$
544

 
$
18

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
—

 
—

 
—

 
—

 
—

Real estate – 1-4 family mortgage
5,463

 
1,746

 
3,114

 
4,860

 
54

Real estate – commercial mortgage
3,108

 
2,898

 
178

 
3,076

 
52

Installment loans to individuals
101

 
62

 
13

 
75

 
3

Total
$
9,239

 
$
4,827

 
$
3,728

 
$
8,555

 
$
127

December 31, 2016
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
732

 
$
487

 
$
224

 
$
711

 
$
310

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
147

 
145

 
—

 
145

 
—

Real estate – 1-4 family mortgage
3,095

 
1,496

 
1,385

 
2,881

 
43

Real estate – commercial mortgage
2,485

 
2,275

 
183

 
2,458

 
48

Installment loans to individuals
215

 
135

 
55

 
190

 
114

Totals
$
6,674

 
$
4,538

 
$
1,847

 
$
6,385

 
$
515



The following table presents the average recorded investment and interest income recognized on loans accounted for under ASC 310-20 and which are impaired loans for the periods presented:
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Three Months Ended
 
March 31, 2017
 
March 31, 2016
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Commercial, financial, agricultural
$
541

 
$
2

 
$
8

 
$
—

Lease financing
—

 
—

 
—

 
—

Real estate – construction
—

 
—

 
—

 
—

Real estate – 1-4 family mortgage
5,481

 
21

 
810

 
9

Real estate – commercial mortgage
3,090

 
35

 
1,515

 
10

Installment loans to individuals
85

 
—

 
—

 
—

Total
$
9,197

 
$
58

 
$
2,333

 
$
19



Loans accounted for under ASC 310-30, and which are impaired loans recognized in conformity with ASC 310, segregated by class, were as follows as of the dates presented:
 
 
Unpaid
Contractual
Principal
Balance
 
Recorded
Investment
With
Allowance
 
Recorded
Investment
With No
Allowance
 
Total
Recorded
Investment
 
Related
Allowance
March 31, 2017
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
21,357

 
$
6,451

 
$
6,577

 
$
13,028

 
$
378

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
—

 
—

 
—

 
—

 
 
Real estate – 1-4 family mortgage
80,398

 
20,725

 
47,340

 
68,065

 
767

Real estate – commercial mortgage
214,450

 
58,271

 
114,448

 
172,719

 
1,573

Installment loans to individuals
2,091

 
527

 
1,400

 
1,927

 
1

Total
$
318,296

 
$
85,974

 
$
169,765

 
$
255,739

 
$
2,719

December 31, 2016
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
20,697

 
$
4,555

 
$
7,439

 
$
11,994

 
$
372

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
1,141

 
—

 
840

 
840

 
—

Real estate – 1-4 family mortgage
86,725

 
21,887

 
50,065

 
71,952

 
841

Real estate – commercial mortgage
229,075

 
62,449

 
122,538

 
184,987

 
1,606

Installment loans to individuals
2,466

 
366

 
1,619

 
1,985

 
1

Totals
$
340,104

 
$
89,257

 
$
182,501

 
$
271,758

 
$
2,820



The following table presents the average recorded investment and interest income recognized on loans accounted for under ASC 310-30 and which are impaired loans for the periods presented:
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Three Months Ended
 
March 31, 2017
 
March 31, 2016
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Commercial, financial, agricultural
$
14,088

 
$
247

 
$
18,024

 
$
327

Lease financing
—

 
—

 
—

 
—

Real estate – construction
—

 
—

 
2,608

 
25

Real estate – 1-4 family mortgage
78,341

 
865

 
101,089

 
953

Real estate – commercial mortgage
196,807

 
2,319

 
250,041

 
2,831

Installment loans to individuals
2,104

 
21

 
2,954

 
29

Total
$
291,340

 
$
3,452

 
$
374,716

 
$
4,165



Restructured Loans
An explanation of what constitutes a “restructured loan,” and management’s analysis in determining whether to restructure a loan, are described above in Note 4, “Non Purchased Loans.”
The following tables illustrate the impact of modifications classified as restructured loans and are segregated by class for the periods presented:
 
 
Number of
Loans
 
Pre-
Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
Three months ended March 31, 2017
 
 
 
 
 
Real estate – 1-4 family mortgage
10

 
2,221

 
1,823

Real estate – commercial mortgage
4

 
2,721

 
1,986

Total
14

 
$
4,942

 
$
3,809

Three months ended March 31, 2016
 
 
 
 
 
Real estate – 1-4 family mortgage
6

 
352

 
242

Real estate – commercial mortgage
2

 
612

 
605

Total
8

 
$
964

 
$
847


 
 
 
 
 
 
There were two restructured loans in the amount of $52 contractually 90 days past due or more and still accruing at March 31, 2017 and no restructured loans contractually 90 days past due or more and still accruing at March 31, 2016. The outstanding balance of restructured loans on nonaccrual status was $1,201 and $5,041 at March 31, 2017 and March 31, 2016, respectively.

Changes in the Company’s restructured loans are set forth in the table below:
 
 
Number of
Loans
 
Recorded
Investment
Totals at January 1, 2017
42

 
$
4,028

Additional loans with concessions
14

 
3,825

Reductions due to:
 
 
 
Charge-offs
(1
)
 
(17
)
Principal paydowns
—

 
(74
)
Totals at March 31, 2017
55

 
$
7,762



The allocated allowance for loan losses attributable to restructured loans was $31 and $91 at March 31, 2017 and March 31, 2016, respectively. The Company had $1,245 and no remaining availability under commitments to lend additional funds on these restructured loans at March 31, 2017 or March 31, 2016, respectively.
Credit Quality
A discussion of the Company’s policies regarding internal risk-rating of loans is discussed above in Note 4, “Non Purchased Loans.” The following table presents the Company’s loan portfolio by risk-rating grades as of the dates presented:

 
Pass
 
Watch
 
Substandard
 
Total
March 31, 2017
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
89,802

 
$
1,959

 
$
1,143

 
$
92,904

Lease financing
—

 
—

 
—

 
—

Real estate – construction
34,405

 
—

 
—

 
34,405

Real estate – 1-4 family mortgage
101,652

 
6,578

 
719

 
108,949

Real estate – commercial mortgage
601,582

 
8,007

 
710

 
610,299

Installment loans to individuals
—

 
—

 
4

 
4

Total
$
827,441

 
$
16,544

 
$
2,576

 
$
846,561

December 31, 2016
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
102,777

 
$
2,370

 
$
1,491

 
$
106,638

Lease financing
—

 
—

 
—

 
—

Real estate – construction
61,206

 
2,640

 
—

 
63,846

Real estate – 1-4 family mortgage
105,265

 
7,665

 
364

 
113,294

Real estate – commercial mortgage
608,192

 
8,445

 
723

 
617,360

Installment loans to individuals
—

 
—

 
114

 
114

Total
$
877,440

 
$
21,120

 
$
2,692

 
$
901,252



The following table presents the performing status of the Company’s loan portfolio not subject to risk rating as of the dates presented:
 
 
Performing
 
Non-
Performing
 
Total
March 31, 2017
 
 
 
 
 
Commercial, financial, agricultural
$
9,234

 
$
63

 
$
9,297

Lease financing
—

 
—

 
—

Real estate – construction
1,268

 
—

 
1,268

Real estate – 1-4 family mortgage
253,172

 
1,718

 
254,890

Real estate – commercial mortgage
21,715

 
57

 
21,772

Installment loans to individuals
11,961

 
232

 
12,193

Total
$
297,350

 
$
2,070

 
$
299,420

December 31, 2016
 
 
 
 
 
Commercial, financial, agricultural
$
9,489

 
$
79

 
$
9,568

Lease financing
—

 
—

 
—

Real estate – construction
3,601

5

466

 
4,067

Real estate – 1-4 family mortgage
265,697

 
1,504

 
267,201

Real estate – commercial mortgage
21,353

 
58

 
21,411

Installment loans to individuals
13,712

 
168

 
13,880

Total
$
313,852

 
$
2,275

 
$
316,127



Loans Purchased with Deteriorated Credit Quality
Loans purchased in business combinations that exhibited, at the date of acquisition, evidence of deterioration of the credit quality since origination, such that it was probable that all contractually required payments would not be collected, were as follows as of the dates presented:
 
 
Total Purchased Credit Deteriorated Loans
March 31, 2017
 
Commercial, financial, agricultural
$
13,028

Lease financing
—

Real estate – construction
—

Real estate – 1-4 family mortgage
68,065

Real estate – commercial mortgage
172,719

Installment loans to individuals
1,927

Total
$
255,739

December 31, 2016
 
Commercial, financial, agricultural
$
11,994

Lease financing
—

Real estate – construction
840

Real estate – 1-4 family mortgage
71,952

Real estate – commercial mortgage
184,987

Installment loans to individuals
1,985

Total
$
271,758



The following table presents the fair value of loans determined to be impaired at the time of acquisition and determined not to be impaired at the time of acquisition at March 31, 2017:
 
 
Total Purchased Credit Deteriorated Loans
Contractually-required principal and interest
$
366,954

Nonaccretable difference(1)
(79,190
)
Cash flows expected to be collected
287,764

Accretable yield(2)
(32,025
)
Fair value
$
255,739

 
(1)
Represents contractual principal and interest cash flows of $79,174 and $16, respectively, not expected to be collected.
(2)
Represents contractual interest payments of $758 expected to be collected and purchase discount of $31,267.
Changes in the accretable yield of loans purchased with deteriorated credit quality were as follows:
 
 
Total Purchased Credit Deteriorated Loans
Balance at January 1, 2017
$
(36,326
)
Additions due to acquisition
—

Reclasses from nonaccretable difference
657

Accretion
3,263

Charge-offs
381

Balance at March 31, 2017
$
(32,025
)



The following table presents the fair value of loans purchased from KeyWorth as of the April 1, 2016 acquisition date.
At acquisition date:
 
April 1, 2016
  Contractually-required principal and interest
 
$
289,495

  Nonaccretable difference
 
3,848

  Cash flows expected to be collected
 
285,647

  Accretable yield
 
13,317

      Fair value
 
$
272,330