Purchased Loans

9 Months Ended

Sep. 30, 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:

	September 30, 2017			December 31, 2016
Commercial, financial, agricultural	$	707,835		$	589,290
Lease financing	54,688			49,250
Real estate – construction	477,638			483,926
Real estate – 1-4 family mortgage	1,644,060			1,425,730
Real estate – commercial mortgage	2,311,340			2,075,137
Installment loans to individuals	100,692			92,648
Gross loans	5,296,253			4,715,981
Unearned income	(2,786		)	(2,409		)
Loans, net of unearned income	5,293,467			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
September 30, 2017
Commercial, financial, agricultural	$	1,808	$	774	$	703,574		$	706,156		$	538	$	863	$	278	$	1,679	$	707,835
Lease financing	476		—		54,047			54,523			—		165		—		165		54,688
Real estate – construction	403		—		477,235			477,638			—		—		—		—		477,638
Real estate – 1-4 family mortgage	6,307		984		1,632,983			1,640,274			210		1,342		2,234		3,786		1,644,060
Real estate – commercial mortgage	3,140		1,505		2,302,423			2,307,068			—		1,303		2,969		4,272		2,311,340
Installment loans to individuals	258		32		100,334			100,624			—		45		23		68		100,692
Unearned income	—		—		(2,786		)	(2,786		)	—		—		—		—		(2,786		)
Total	$	12,392	$	3,295	$	5,267,810		$	5,283,497		$	748	$	3,718	$	5,504	$	9,970	$	5,293,467
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, as applicable, 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 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
September 30, 2017
Commercial, financial, agricultural	$	2,118	$	1,843	$	—	$	1,843	$	30
Real estate – construction	897		897		—		897		4
Real estate – 1-4 family mortgage	10,508		8,004		704		8,708		809
Real estate – commercial mortgage	9,777		7,189		—		7,189		1,958
Installment loans to individuals	140		136		—		136		1
Total	$	23,440	$	18,069	$	704	$	18,773	$	2,802
December 31, 2016
Commercial, financial, agricultural	$	1,577	$	1,175	$	—	$	1,175	$	136
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
	September 30, 2017				September 30, 2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial, financial, agricultural	$	1,960	$	8	$	1,841	$	22
Real estate – construction	897		33		862		26
Real estate – 1-4 family mortgage	8,897		71		16,119		97
Real estate – commercial mortgage	7,575		46		10,953		46
Installment loans to individuals	140		1		67		1
Total	$	19,469	$	159	$	29,842	$	192

	Nine Months Ended				Nine Months Ended
	September 30, 2017				September 30, 2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial, financial, agricultural	$	2,140	$	8	$	1,762	$	42
Real estate – construction	861		36		671		27
Real estate – 1-4 family mortgage	8,944		165		16,354		283
Real estate – commercial mortgage	7,844		134		11,800		236
Installment loans to individuals	148		2		67		2
Total	$	19,937	$	345	$	30,654	$	590

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 which were held on the Consolidated Balance Sheets at period end 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 September 30, 2017
Real estate – 1-4 family mortgage	4	$	307	$	307
Real estate – commercial mortgage	1	230		175
Installment loans to individuals	—	—		—
Total	5	$	537	$	482
Three months ended September 30, 2016
Real estate – construction	1	510		510
Real estate – 1-4 family mortgage	2	$	194	$	147
Total	3	$	704	$	657

	Number of Loans	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Nine months ended September 30, 2017
Real estate – 1-4 family mortgage	9	$	611	$	601
Real estate – commercial mortgage	3	683		318
Installment loans to individuals	1	4		3
Total	13	$	1,298	$	922
Nine months ended September 30, 2016
Real estate – construction	1	510		510
Real estate – 1-4 family mortgage	10	$	1,199	$	1,096
Real estate – commercial mortgage	1	529		525
Total	12	$	2,238	$	2,131

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 were three restructured loans in the amount of $597 contractually 90 days past due or more and still accruing at September 30, 2017 and no restructured loans contractually 90 days past due or more and still accruing at September 30, 2016. The outstanding balance of restructured loans on nonaccrual status was $4,651 and $6,485 at September 30, 2017 and September 30, 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	13		965
Reclassified as performing	1		55
Reductions due to:
Reclassified as nonperforming	(5	)	(670		)
Paid in full	(7	)	(1,086		)
Charge-offs	(1	)	(250		)
Principal paydowns	—		(238		)
Lapse of concession period	(1	)	(923		)
Totals at September 30, 2017	53		$	5,300

The allocated allowance for loan losses attributable to restructured loans was $98 and $287 at September 30, 2017 and September 30, 2016, respectively. The Company had no remaining availability under commitments to lend additional funds on these restructured loans at September 30, 2017 and had $11 in remaining availability under commitments to lend additional funds on restructured loans at September 30, 2016.

Credit Quality

For commercial and commercial real estate loans, 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
September 30, 2017
Commercial, financial, agricultural	$	522,410	$	4,505	$	726	$	527,641
Real estate – construction	415,168		130		88		415,386
Real estate – 1-4 family mortgage	247,584		3,778		5,492		256,854
Real estate – commercial mortgage	1,964,371		13,408		10,654		1,988,433
Installment loans to individuals	504		—		—		504
Total	$	3,150,037	$	21,821	$	16,960	$	3,188,818
December 31, 2016
Commercial, financial, agricultural	$	434,323	$	4,531	$	850	$	439,704
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
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
September 30, 2017
Commercial, financial, agricultural	$	178,294	$	1,900	$	180,194
Lease financing	51,737		165		51,902
Real estate – construction	62,252		—		62,252
Real estate – 1-4 family mortgage	1,384,865		2,341		1,387,206
Real estate – commercial mortgage	321,404		1,503		322,907
Installment loans to individuals	100,088		100		100,188
Total	$	2,098,640	$	6,009	$	2,104,649
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:

	September 30, 2017		December 31, 2016
Commercial, financial, agricultural	$	301,100	$	128,200
Real estate – construction	100,082		68,753
Real estate – 1-4 family mortgage	651,792		452,447
Real estate – commercial mortgage	1,079,049		823,758
Installment loans to individuals	23,118		15,979
Gross loans	2,155,141		1,489,137
Unearned income	—		—
Loans, net of unearned income	2,155,141		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
September 30, 2017
Commercial, financial, agricultural	$	616	$	481	$	299,473	$	300,570	$	—	$	287	$	243	$	530	$	301,100
Real estate – construction	—		—		100,082		100,082		—		—		—		—		100,082
Real estate – 1-4 family mortgage	3,650		2,294		642,147		648,091		139		1,422		2,140		3,701		651,792
Real estate – commercial mortgage	3,448		4,566		1,070,563		1,078,577		196		99		177		472		1,079,049
Installment loans to individuals	346		8		22,599		22,953		3		—		162		165		23,118
Total	$	8,060	$	7,349	$	2,134,864	$	2,150,273	$	338	$	1,808	$	2,722	$	4,868	$	2,155,141
December 31, 2016
Commercial, financial, agricultural	$	823	$	990	$	125,417	$	127,230	$	260	$	381	$	329	$	970	$	128,200
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
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
September 30, 2017
Commercial, financial, agricultural	$	459	$	433	$	15	$	448	$	66
Real estate – construction	1,837		759		1,074		1,833		5
Real estate – 1-4 family mortgage	5,239		1,521		3,118		4,639		46
Real estate – commercial mortgage	897		720		169		889		5
Installment loans to individuals	167		154		11		165		4
Total	$	8,599	$	3,587	$	4,387	$	7,974	$	126
December 31, 2016
Commercial, financial, agricultural	$	732	$	487	$	224	$	711	$	310
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
	September 30, 2017				September 30, 2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial, financial, agricultural	$	413	$	6	$	2,387	$	28
Real estate – construction	829		62		1,010		26
Real estate – 1-4 family mortgage	5,174		41		18,914		114
Real estate – commercial mortgage	899		8		13,425		87
Installment loans to individuals	167		—		234		1
Total	$	7,482	$	117	$	35,970	$	256

	Nine Months Ended				Nine Months Ended
	September 30, 2017				September 30, 2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial, financial, agricultural	$	332	$	9	$	2,233	$	48
Real estate – construction	741		62		819		28
Real estate – 1-4 family mortgage	5,221		103		19,146		309
Real estate – commercial mortgage	915		25		14,271		294
Installment loans to individuals	169		—		239		2
Total	$	7,378	$	199	$	36,708	$	681

Loans accounted for under ASC 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality” (“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
September 30, 2017
Commercial, financial, agricultural	$	26,853	$	6,770	$	10,689	$	17,459	$	325
Real estate – 1-4 family mortgage	71,858		17,639		42,130		59,769		614
Real estate – commercial mortgage	198,563		65,175		100,791		165,966		985
Installment loans to individuals	1,824		693		992		1,685		1
Total	$	299,098	$	90,277	$	154,602	$	244,879	$	1,925
December 31, 2016
Commercial, financial, agricultural	$	20,697	$	4,555	$	7,439	$	11,994	$	372
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
	September 30, 2017				September 30, 2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial, financial, agricultural	$	14,201	$	507	$	15,317	$	252
Real estate – construction	—		—		987		15
Real estate – 1-4 family mortgage	67,802		808		92,830		1,056
Real estate – commercial mortgage	174,394		2,578		226,533		2,635
Installment loans to individuals	1,812		18		2,509		25
Total	$	258,209	$	3,911	$	338,176	$	3,983

	Nine Months Ended				Nine Months Ended
	September 30, 2017				September 30, 2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial, financial, agricultural	$	13,530	$	988	$	15,768	$	839
Real estate – construction	—		—		991		48
Real estate – 1-4 family mortgage	68,933		2,301		93,900		3,000
Real estate – commercial mortgage	177,039		6,886		224,004		7,859
Installment loans to individuals	1,865		55		2,625		80
Total	$	261,367	$	10,230	$	337,288	$	11,826

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 which were held on the Consolidated Balance Sheets at period end 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 September 30, 2017
Real estate – 1-4 family mortgage	18	$	1,624	$	1,189
Real estate – commercial mortgage	1	393		244
Total	19	$	2,017	$	1,433
Three months ended September 30, 2016
Real estate – 1-4 family mortgage	2	$	132	$	120
Total	2	$	132	$	120

	Number of Loans	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Nine months ended September 30, 2017
Real estate – 1-4 family mortgage	28	$	3,789	$	3,062
Real estate – commercial mortgage	3	2,851		2,025
Total	31	$	6,640	$	5,087
Nine months ended September 30, 2016
Real estate – 1-4 family mortgage	7	$	412	$	325
Real estate – commercial mortgage	1	83		81
Total	8	$	495	$	406

There were two restructured loans in the amount of $146 contractually 90 days past due or more and still accruing at September 30, 2017 and no restructured loans contractually 90 days past due or more and still accruing at September 30, 2016. The outstanding balance of restructured loans on nonaccrual status was $504 and $3,279 at September 30, 2017 and September 30, 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	31		5,182
Reclassified as performing restructured loan	6		534
Reductions due to:
Reclassified to nonperforming loans	(8	)	(679		)
Paid in full	(1	)	(6		)
Charge-offs	(1	)	(17		)
Principal paydowns	—		(278		)
Lapse of concession period	(1	)	(101		)
Totals at September 30, 2017	68		$	8,663

The allocated allowance for loan losses attributable to restructured loans was $97 and $34 at September 30, 2017 and September 30, 2016, respectively. The Company had $7 in remaining availability under commitments to lend additional funds on these restructured loans at September 30, 2017 and no remaining availability under commitments to lend additional funds on these restructured loans at September 30, 2016.

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
September 30, 2017
Commercial, financial, agricultural	$	269,798	$	2,381	$	663	$	272,842
Real estate – construction	92,825		—		—		92,825
Real estate – 1-4 family mortgage	105,040		6,042		252		111,334
Real estate – commercial mortgage	877,455		7,583		1,835		886,873
Installment loans to individuals	696		—		3		699
Total	$	1,345,814	$	16,006	$	2,753	$	1,364,573
December 31, 2016
Commercial, financial, agricultural	$	102,777	$	2,370	$	1,491	$	106,638
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
September 30, 2017
Commercial, financial, agricultural	$	10,741		$	58	$	10,799
Real estate – construction	7,257			—		7,257
Real estate – 1-4 family mortgage	479,069			1,620		480,689
Real estate – commercial mortgage	26,088			122		26,210
Installment loans to individuals	20,572			162		20,734
Total	$	543,727		$	1,962	$	545,689
December 31, 2016
Commercial, financial, agricultural	$	9,489		$	79	$	9,568
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
September 30, 2017
Commercial, financial, agricultural	$	17,459
Real estate – 1-4 family mortgage	59,769
Real estate – commercial mortgage	165,966
Installment loans to individuals	1,685
Total	$	244,879
December 31, 2016
Commercial, financial, agricultural	$	11,994
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 that exhibited evidence of deteriorated credit quality at the time of acquisition at September 30, 2017:

	Total Purchased Credit Deteriorated Loans
Contractually-required principal and interest	$	340,513
Nonaccretable difference(1)	(61,435		)
Cash flows expected to be collected	279,078
Accretable yield(2)	(34,199		)
Fair value	$	244,879

(1) Represents contractual principal and interest cash flows of $52,109 and $9,326, respectively, not expected to be collected.

(2) Represents contractual principal and interest cash flows of $1,643 and $32,556, respectively, expected to be collected.

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	$	(37,474	)
Additions due to acquisition	(1,794		)
Reclasses from nonaccretable difference	(7,718		)
Accretion	11,619
Charge-offs	1,168
Balance at September 30, 2017	$	(34,199	)

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

The following table presents the fair value of loans purchased from Metropolitan as of the July 1, 2017 acquisition date.

At acquisition date:	July 1, 2017
Contractually-required principal and interest	$	1,198,132
Nonaccretable difference	(80,887		)
Cash flows expected to be collected	1,117,245
Accretable yield	(152,821		)
Fair value	$	964,424