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Purchased Loans
 12 Months Ended
Dec. 31, 2017
Receivables [Abstract]  
Purchased Loans
Non Purchased Loans
(In Thousands, Except Number of Loans)
“Purchased” loans are those loans acquired in any of the Company’s previous acquisitions, including FDIC-assisted acquisitions. “Non purchased” loans include all of the Company’s other loans, other than mortgage loans held for sale.
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 at December 31: 
 
2017
 
2016
Commercial, financial, agricultural
$
763,823

 
$
589,290

Lease financing
57,354

 
49,250

Real estate – construction
547,658

 
483,926

Real estate – 1-4 family mortgage
1,729,534

 
1,425,730

Real estate – commercial mortgage
2,390,076

 
2,075,137

Installment loans to individuals
103,452

 
92,648

Gross loans
5,591,897

 
4,715,981

Unearned income
(3,341
)
 
(2,409
)
Loans, net of unearned income
$
5,588,556

 
$
4,713,572



Past Due and Nonaccrual 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
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
2,722

 
$
22

 
$
759,143

 
$
761,887

 
$
205

 
$
1,033

 
$
698

 
$
1,936

 
$
763,823

Lease financing
47

 
—

 
57,148

 
57,195

 
—

 
159

 
—

 
159

 
57,354

Real estate – construction
50

 
—

 
547,608

 
547,658

 
—

 
—

 
—

 
—

 
547,658

Real estate – 1-4 family mortgage
11,810

 
2,194

 
1,712,982

 
1,726,986

 
—

 
1,818

 
730

 
2,548

 
1,729,534

Real estate – commercial mortgage
1,921

 
727

 
2,381,871

 
2,384,519

 
—

 
2,877

 
2,680

 
5,557

 
2,390,076

Installment loans to individuals
429

 
72

 
102,901

 
103,402

 
1

 
28

 
21

 
50

 
103,452

Unearned income
—

 
—

 
(3,341
)
 
(3,341
)
 
—

 
—

 
—

 
—

 
(3,341
)
Total
$
16,979

 
$
3,015

 
$
5,558,312

 
$
5,578,306

 
$
206

 
$
5,915

 
$
4,129

 
$
10,250

 
$
5,588,556

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


Restructured loans that are 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 four restructured loans totaling $649 that were contractually 90 days past due or more and still accruing at December 31, 2017. There was one restructured loan totaling $69 that was contractually 90 days past due or more and still accruing at December 31, 2016. The outstanding balance of restructured loans on nonaccrual status was $2,673 and $6,164 at December 31, 2017 and 2016, respectively.
Impaired Loans
Impaired loans recognized in conformity with ASC 310, segregated by class, were as follows as of the dates and for the periods presented: 
 
As of December 31, 2017
 
Year Ended December 31, 2017
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
With a related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
2,365

 
$
3,043

 
$
138

 
$
2,861

 
$
47

Lease financing
159

 
159

 
2

 
159

 
—

Real estate – construction
578

 
578

 
4

 
526

 
29

Real estate – 1-4 family mortgage
8,169

 
9,315

 
561

 
8,295

 
259

Real estate – commercial mortgage
9,652

 
12,463

 
1,861

 
9,316

 
206

Installment loans to individuals
117

 
121

 
1

 
130

 
3

Total
$
21,040

 
$
25,679

 
$
2,567

 
$
21,287

 
$
544

With no related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
—

 
—

 
—

 
—

 
—

Real estate – 1-4 family mortgage
703

 
703

 
—

 
711

 
29

Real estate – commercial mortgage
—

 
—

 
—

 
—

 
—

Installment loans to individuals
—

 
—

 
—

 
—

 
—

Total
$
703

 
$
703

 
$
—

 
$
711

 
$
29

Totals
$
21,743

 
$
26,382

 
$
2,567

 
$
21,998

 
$
573

 
As of December 31, 2016
 
Year Ended December 31, 2016
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
With a related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
1,175

 
$
1,539

 
$
136

 
$
856

 
$
28

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
517

 
517

 
1

 
469

 
26

Real estate – 1-4 family mortgage
9,207

 
10,823

 
1,091

 
9,603

 
225

Real estate – commercial mortgage
10,053

 
13,667

 
2,397

 
11,180

 
305

Installment loans to individuals
87

 
87

 
1

 
98

 
2

Total
$
21,039

 
$
26,633

 
$
3,626

 
$
22,206

 
$
586

With no related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
—

 
$
38

 
$
—

 
$
24

 
$
—

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
—

 
—

 
—

 
—

 
—

Real estate – 1-4 family mortgage
—

 
—

 
—

 
41

 
—

Real estate – commercial mortgage
568

 
1,340

 
—

 
938

 
38

Installment loans to individuals
—

 
—

 
—

 
—

 
—

Total
$
568

 
$
1,378

 
$
—

 
$
1,003

 
$
38

Totals
$
21,607

 
$
28,011

 
$
3,626

 
$
23,209

 
$
624


The average recorded investment in impaired loans for the year ended December 31, 2015 was $34,428. Interest income recognized on impaired loans for the year ended December 31, 2015 was $854.
Restructured Loans
At December 31, 2017, 2016 and 2015, there were $5,588, $7,447 and $10,252, respectively, of restructured loans. The following table illustrates the impact of modifications classified as restructured loans held on the Consolidated Balance Sheets and still performing in accordance with their restructured terms at period end, segregated by class, as of the periods presented.
 
Number of
Loans
 
Pre-Modification
Outstanding
Recorded
Investment
 
Post-Modification
Outstanding
Recorded
Investment
December 31, 2017
 
 
 
 
 
Commercial, financial, agricultural
2

 
$
331

 
$
330

Lease financing
—

 
—

 
—

Real estate – construction
—

 
—

 
—

Real estate – 1-4 family mortgage
8

 
598

 
586

Real estate – commercial mortgage
3

 
683

 
313

Installment loans to individuals
1

 
4

 
3

Total
14

 
$
1,616

 
$
1,232

December 31, 2016
 
 
 
 
 
Commercial, financial, agricultural
—

 
$
—

 
$
—

Lease financing
—

 
—

 
—

Real estate – construction
1

 
510

 
518

Real estate – 1-4 family mortgage
11

 
1,188

 
1,167

Real estate – commercial mortgage
—

 
—

 
—

Installment loans to individuals
—

 
—

 
—

Total
12

 
$
1,698

 
$
1,685

December 31, 2015
 
 
 
 
 
Commercial, financial, agricultural
—

 
$
—

 
$
—

Lease financing
—

 
—

 
—

Real estate – construction
—

 
—

 
—

Real estate – 1-4 family mortgage
22

 
2,202

19,371

2,035

Real estate – commercial mortgage
2

 
484

 
332

Installment loans to individuals
1

 
67

 
67

Total
25

 
$
2,753

 
$
2,434


During the years ended December 31, 2017, the Company had $184 in troubled debt restructurings that subsequently defaulted within twelve months of the restructuring. There was no such occurrence for the years ended December 31, 2016 or December 31, 2015.

Changes in the Company’s restructured loans are set forth in the table below.
 
Number of
Loans
 
Recorded
Investment
Totals at January 1, 2016
59

 
$
10,252

Additional loans with concessions
15

 
2,036

Reclassified as performing
1

 
39

Reductions due to:
 
 
 
Reclassified as nonperforming
(4
)
 
(1,406
)
Paid in full
(16
)
 
(2,233
)
Charge-offs
(1
)
 
(275
)
Transfer to other real estate owned
(1
)
 
(51
)
Principal paydowns
—

 
(915
)
Totals at December 31, 2016
53

 
$
7,447

Additional loans with concessions
16

 
1,453

Reclassified as performing
2

 
183

Reductions due to:
 
 
 
Reclassified as nonperforming
(7
)
 
(853
)
Paid in full
(8
)
 
(1,165
)
Charge-offs
(1
)
 
(250
)
Principal paydowns
—

 
(304
)
Lapse of concession period
(1
)
 
(923
)
Totals at December 31, 2017
54

 
$
5,588


The allocated allowance for loan losses attributable to restructured loans was $85 and $283 at December 31, 2017 and 2016, respectively. The Company had $18 remaining availability under commitments to lend additional funds on these restructured loans at December 31, 2017 and $2 in remaining availability under commitments to lend additional funds on these restructured loans at December 31, 2016.
Credit Quality
For commercial and commercial real estate secured 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 commercial and commercial real estate secured 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. The “Watch” grade (those with a risk rating of 5) is utilized on a temporary basis for “Pass” grade loans where a significant 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 those 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
December 31, 2017
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
566,439

 
$
3,913

 
$
489

 
$
570,841

Real estate – construction
484,160

 
81

 
—

 
484,241

Real estate – 1-4 family mortgage
255,148

 
4,977

 
3,720

 
263,845

Real estate – commercial mortgage
2,034,178

 
13,533

 
10,708

 
2,058,419

Installment loans to individuals
921

 
—

 
—

 
921

Total
$
3,340,846

 
$
22,504

 
$
14,917

 
$
3,378,267

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

Installment loans to individuals
—

 
—

 
—

 
—

Total
$
2,761,884

 
$
26,416

 
$
20,067

 
$
2,808,367


For portfolio balances of consumer, consumer mortgage and certain other similar loan types, 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
December 31, 2017
 
 
 
 
 
Commercial, financial, agricultural
$
191,473

 
$
1,509

 
$
192,982

Lease financing
53,854

 
159

 
54,013

Real estate – construction
63,417

 
—

 
63,417

Real estate – 1-4 family mortgage
1,462,347

 
3,342

 
1,465,689

Real estate – commercial mortgage
330,441

 
1,216

 
331,657

Installment loans to individuals
102,409

 
122

 
102,531

Total
$
2,203,941

 
$
6,348

 
$
2,210,289

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


Related Party Loans
Certain executive officers and directors of Renasant Bank and their associates are customers of and have other transactions with Renasant Bank. Related party loans and commitments are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with persons not related to the Company or the Bank and do not involve more than a normal risk of collectability or present other unfavorable features. A summary of the changes in related party loans follows:
Loans at December 31, 2016
$
14,268

New loans and advances
4,342

Loans to directors assumed in acquisition(1)
9,975

Payments received
(4,222
)
Changes in related parties
—

Loans at December 31, 2017
$
24,363


(1)
Loans to directors assumed in acquisition are included in the tables in Note 5, “Purchased Loans.”
No related party loans were classified as past due, nonaccrual, impaired or restructured at December 31, 2017 or 2016. Unfunded commitments to certain executive officers and directors and their associates totaled $9,333 and $5,933 at December 31, 2017 and 2016, respectively.
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 at December 31: 
 
2017
 
2016
Commercial, financial, agricultural
$
275,570

 
$
128,200

Lease financing
—

 
—

Real estate – construction
85,731

 
68,753

Real estate – 1-4 family mortgage
614,187

 
452,447

Real estate – commercial mortgage
1,037,454

 
823,758

Installment loans to individuals
18,824

 
15,979

Gross loans
2,031,766

 
1,489,137

Unearned income
—

 
—

Loans, net of unearned income
$
2,031,766

 
$
1,489,137


Past Due and Nonaccrual 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
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
1,119

 
$
532

 
$
273,488

 
$
275,139

 
$
—

 
$
199

 
$
232

 
$
431

 
$
275,570

Lease financing
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Real estate – construction
415

 
—

 
85,316

 
85,731

 
—

 
—

 
—

 
—

 
85,731

Real estate – 1-4 family mortgage
6,070

 
2,280

 
602,464

 
610,814

 
385

 
879

 
2,109

 
3,373

 
614,187

Real estate – commercial mortgage
2,947

 
2,910

 
1,031,141

 
1,036,998

 
191

 
99

 
166

 
456

 
1,037,454

Installment loans to individuals
208

 
9

 
18,443

 
18,660

 
59

 
—

 
105

 
164

 
18,824

Unearned income
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
10,759

 
$
5,731

 
$
2,010,852

 
$
2,027,342

 
$
635

 
$
1,177

 
$
2,612

 
$
4,424

 
$
2,031,766

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


Restructured loans that are 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 totaling $128 that were contractually 90 days past due or more and still accruing at December 31, 2017. There were three restructured loans totaling $56 that were contractually 90 days past due or more and still accruing at December 31, 2016. The outstanding balance of restructured loans on nonaccrual status was $523 and $1,206 at December 31, 2017 and 2016, respectively.
Impaired Loans
Non credit deteriorated loans that were subsequently impaired and recognized in conformity with ASC 310, segregated by class, were as follows as of the dates and for the periods presented: 
 
As of December 31, 2017
 
Year Ended December 31, 2017
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
With a related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
625

 
$
678

 
$
52

 
$
618

 
$
21

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
—

 
—

 
—

 
—

 
—

Real estate – 1-4 family mortgage
1,385

 
1,433

 
45

 
1,419

 
18

Real estate – commercial mortgage
728

 
733

 
6

 
751

 
26

Installment loans to individuals
154

 
155

 
4

 
155

 
—

Total
$
2,892

 
$
2,999

 
$
107

 
$
2,943

 
$
65

With no related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
74

 
$
79

 
$
—

 
$
75

 
$
3

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
1,199

 
1,207

 
—

 
318

 
47

Real estate – 1-4 family mortgage
4,225

 
4,740

 
—

 
4,161

 
176

Real estate – commercial mortgage
165

 
168

 
—

 
177

 
8

Installment loans to individuals
9

 
10

 
—

 
13

 
—

Total
$
5,672

 
$
6,204

 
$
—

 
$
4,744

 
$
234

Totals
$
8,564

 
$
9,203

 
$
107

 
$
7,687

 
$
299

 
As of December 31, 2016
 
Year Ended December 31, 2016
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
With a related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
487

 
$
503

 
$
310

 
$
500

 
$
2

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
145

 
147

 
—

 
148

 
—

Real estate – 1-4 family mortgage
1,496

 
1,538

 
43

 
1,535

 
7

Real estate – commercial mortgage
2,275

 
2,299

 
48

 
2,273

 
111

Installment loans to individuals
135

 
159

 
114

 
161

 
—

Total
$
4,538

 
$
4,646

 
$
515

 
$
4,617

 
$
120

With no related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
224

 
$
229

 
$
—

 
$
172

 
$
4

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
—

 
—

 
—

 
—

 
—

Real estate – 1-4 family mortgage
1,385

 
1,557

 
—

 
1,550

 
33

Real estate – commercial mortgage
183

 
186

 
—

 
194

 
11

Installment loans to individuals
55

 
56

 
—

 
61

 
—

Total
$
1,847

 
$
2,028

 
$
—

 
$
1,977

 
$
48

Totals
$
6,385

 
$
6,674

 
$
515

 
$
6,594

 
$
168


The average recorded investment in non credit deteriorated loans that were subsequently impaired for the year ended December 31, 2015 was $2,860. Interest income recognized on non credit deteriorated loans that were subsequently impaired for the year ended December 31, 2015 was $125.
Credit deteriorated loans recognized in conformity with ASC 310-30, segregated by class, were as follows as of the dates and for the periods presented: 
 
As of December 31, 2017
 
Year Ended December 31, 2017
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
With a related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
5,768

 
$
6,004

 
$
312

 
$
5,672

 
$
259

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
—

 
—

 
—

 
—

 
—

Real estate – 1-4 family mortgage
15,910

 
16,752

 
572

 
16,837

 
793

Real estate – commercial mortgage
65,108

 
69,029

 
892

 
68,168

 
3,333

Installment loans to individuals
698

 
698

 
1

 
710

 
25

Total
$
87,484

 
$
92,483

 
$
1,777

 
$
91,387

 
$
4,410

With no related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
9,547

 
$
18,175

 
$
—

 
$
9,208

 
$
989

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
—

 
—

 
—

 
—

 
—

Real estate – 1-4 family mortgage
38,059

 
48,297

 
—

 
46,983

 
1,993

Real estate – commercial mortgage
91,230

 
117,691

 
—

 
104,485

 
5,431

Installment loans to individuals
940

 
1,063

 
—

 
1,109

 
46

Total
$
139,776

 
$
185,226

 
$
—

 
$
161,785

 
$
8,459

Totals
$
227,260

 
$
277,709

 
$
1,777

 
$
253,172

 
$
12,869

 
As of December 31, 2016
 
Year Ended December 31, 2016
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
With a related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
4,555

 
$
5,038

 
$
372

 
$
4,728

 
$
207

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
—

 
—

 
—

 
—

 
—

Real estate – 1-4 family mortgage
21,887

 
23,128

 
841

 
23,021

 
1,015

Real estate – commercial mortgage
62,449

 
70,970

 
1,606

 
62,759

 
2,674

Installment loans to individuals
366

 
368

 
1

 
382

 
13

Total
$
89,257

 
$
99,504

 
$
2,820

 
$
90,890

 
$
3,909

With no related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
7,439

 
$
15,659

 
$
—

 
$
10,304

 
$
819

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
840

 
1,141

 
—

 
648

 
38

Real estate – 1-4 family mortgage
50,065

 
63,597

 
—

 
64,306

 
2,636

Real estate – commercial mortgage
122,538

 
158,105

 
—

 
149,917

 
7,053

Installment loans to individuals
1,619

 
2,098

 
—

 
1,967

 
77

Total
$
182,501

 
$
240,600

 
$
—

 
$
227,142

 
$
10,623

Totals
$
271,758

 
$
340,104

 
$
2,820

 
$
318,032

 
$
14,532


The average recorded investment in credit-deteriorated loans for the year ended December 31, 2015 was $355,010. Interest income recognized on credit-deteriorated loans for the year ended December 31, 2015 was $17,828.
Restructured Loans
At December 31, 2017, 2016 and 2015, there were $8,965, $4,028 and $3,201, respectively, of restructured loans. The following table illustrates the impact of modifications classified as restructured loans held on the Consolidated Balance Sheets and still performing in accordance with their restructured terms at period end, segregated by class, as of the periods presented.
 
Number of
Loans
 
Pre-Modification
Outstanding
Recorded
Investment
 
Post-Modification
Outstanding
Recorded
Investment
December 31, 2017
 
 
 
 
 
Commercial, financial, agricultural
—

 
$
—

 
$
—

Lease financing
—

 
—

 
—

Real estate – construction
—

 
—

 
—

Real estate – 1-4 family mortgage
23

 
3,744

 
3,127

Real estate – commercial mortgage
5

 
3,115

 
2,231

Installment loans to individuals
—

 
—

 
—

Total
28

 
$
6,859

 
$
5,358

December 31, 2016
 
 
 
 
 
Commercial, financial, agricultural
1

 
$
41

 
$
17

Lease financing
—

 
—

 
—

Real estate – construction
—

 
—

 
—

Real estate – 1-4 family mortgage
17

 
1,608

 
1,269

Real estate – commercial mortgage
5

 
1,623

 
1,079

Installment loans to individuals
—

 
—

 
—

Total
23

 
$
3,272

 
$
2,365

December 31, 2015
 
 
 
 
 
Commercial, financial, agricultural
—

 
$
—

 
$
—

Lease financing
—

 
—

 
—

Real estate – construction
—

 
—

 
—

Real estate – 1-4 family mortgage
15

 
1,268

 
956

Real estate – commercial mortgage
8

 
2,547

 
2,070

Installment loans to individuals
—

 
—

 
—

Total
23

 
$
3,815

 
$
3,026


During the years ended December 31, 2017 and 2016, the Company had $212 and $54, respectively, in troubled debt restructurings that subsequently defaulted within twelve months of the restructuring. There was no such occurrence for the year ended December 31, 2015.

Changes in the Company’s restructured loans are set forth in the table below.
 
Number of
Loans
 
Recorded
Investment
Totals at January 1, 2016
26

 
$
3,201

Additional loans with concessions
25

 
2,472

Reductions due to:

 
 
Reclassified as nonperforming
(4
)
 
(216
)
Paid in full
(5
)
 
(1,297
)
Principal paydowns
—

 
(132
)
Totals at December 31, 2016
42

 
$
4,028

Additional loans with concessions
36

 
5,703

Reclassified from nonperforming
9

 
838

Reductions due to:
 
 
 
Reclassified as nonperforming
(10
)
 
(786
)
Paid in full
(3
)
 
(323
)
Charge-offs
(1
)
 
(17
)
Principal paydowns
—

 
(377
)
Lapse of concession period
(1
)
 
(101
)
Totals at December 31, 2017
72

 
$
8,965


The allocated allowance for loan losses attributable to restructured loans was $103 and $35 at December 31, 2017 and 2016, respectively. The Company had $9 remaining availability under commitments to lend additional funds on these restructured loans at December 31, 2017 and $3 in remaining availability under commitments to lend additional funds on these restructured loans at December 31, 2016.
Credit Quality
The following table presents the Company’s loan portfolio by risk-rating grades as of the dates presented:
 
Pass
 
Watch
 
Substandard
 
Total
December 31, 2017
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
246,169

 
$
2,226

 
$
598

 
$
248,993

Real estate – construction
81,220

 
—

 
—

 
81,220

Real estate – 1-4 family mortgage
93,867

 
5,924

 
248

 
100,039

Real estate – commercial mortgage
844,495

 
7,176

 
1,827

 
853,498

Installment loans to individuals
678

 
—

 
3

 
681

Total
$
1,266,429

 
$
15,326

 
$
2,676

 
$
1,284,431

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
December 31, 2017
 
 
 
 
 
Commercial, financial, agricultural
$
11,216

 
$
46

 
$
11,262

Lease financing
—

 
—

 
—

Real estate – construction
4,511

5

—

 
4,511

Real estate – 1-4 family mortgage
459,038

 
1,141

 
460,179

Real estate – commercial mortgage
27,495

 
123

 
27,618

Installment loans to individuals
16,344

 
161

 
16,505

Total
$
518,604

 
$
1,471

 
$
520,075

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

 
$
79

 
$
9,568

Lease financing
—

 
—

 
—

Real estate – construction
3,601

 
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
December 31, 2017
 
 
Commercial, financial, agricultural
 
$
15,315

Lease financing
 
—

Real estate – construction
 
—

Real estate – 1-4 family mortgage
 
53,969

Real estate – commercial mortgage
 
156,338

Installment loans to individuals
 
1,638

Total
 
$
227,260

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: 
 
Total Purchased Credit Deteriorated Loans
December 31, 2017
 
Contractually-required principal and interest
$
316,854

Nonaccretable difference(1)
(57,387
)
Cash flows expected to be collected
259,467

Accretable yield(2)
(32,207
)
Fair value
$
227,260

December 31, 2016
 
Contractually-required principal and interest
$
384,096

Nonaccretable difference(1)
(74,865
)
Cash flows expected to be collected
309,231

Accretable yield(2)
(37,473
)
Fair value
$
271,758

(1)
Represents contractual principal cash flows of $48,345 and $63,794, respectively, and interest cash flows of $9,042 and $11,071, respectively, not expected to be collected.
(2)
Represents contractual principal cash flows of $1,640 and $1,858, respectively, and interest cash flows of $30,567 and $35,615, 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, 2016
$
(49,439
)
Additions through acquisition
(4,037
)
Reclasses from nonaccretable difference
(950
)
Accretion
14,711

Charge-off
2,242

Balance at December 31, 2016
$
(37,473
)
Additions through acquisition
(1,777
)
Reclasses from nonaccretable difference
(9,750
)
Accretion
15,560

Charge-off
1,233

Balance at December 31, 2017
$
(32,207
)

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
 
$
1,198,741

  Nonaccretable difference
 
(79,165
)
  Cash flows expected to be collected
 
1,119,576

  Accretable yield
 
(154,543
)
      Fair value
 
$
965,033


 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