XML 21 R10.htm IDEA: XBRL DOCUMENT v3.10.0.1
Non Purchased Loans
 6 Months Ended
Jun. 30, 2018
Receivables [Abstract]  
Non 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:
 
 
June 30,
2018
 
December 31, 2017
Commercial, financial, agricultural
$
790,363

 
$
763,823

Lease financing
55,749

 
57,354

Real estate – construction
642,380

 
547,658

Real estate – 1-4 family mortgage
1,912,450

 
1,729,534

Real estate – commercial mortgage
2,554,955

 
2,390,076

Installment loans to individuals
105,195

 
103,452

Gross loans
6,061,092

 
5,591,897

Unearned income
(3,326
)
 
(3,341
)
Loans, net of unearned income
$
6,057,766

 
$
5,588,556



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
June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
1,575

 
$
150

 
$
786,645

 
$
788,370

 
$
—

 
$
1,900

 
$
93

 
$
1,993

 
$
790,363

Lease financing
288

 
44

 
55,082

 
55,414

 
—

 
335

 
—

 
335

 
55,749

Real estate – construction
273

 
49

 
642,058

 
642,380

 
—

 
—

 
—

 
—

 
642,380

Real estate – 1-4 family mortgage
6,921

 
1,663

 
1,901,680

 
1,910,264

 
286

 
1,158

 
742

 
2,186

 
1,912,450

Real estate – commercial mortgage
2,069

 
254

 
2,548,264

 
2,550,587

 
14

 
2,427

 
1,927

 
4,368

 
2,554,955

Installment loans to individuals
487

 
30

 
104,639

 
105,156

 
6

 
23

 
10

 
39

 
105,195

Unearned income
—

 
—

 
(3,326
)
 
(3,326
)
 
—

 
—

 
—

 
—

 
(3,326
)
Total
$
11,613

 
$
2,190

 
$
6,035,042

 
$
6,048,845

 
$
306

 
$
5,843

 
$
2,772

 
$
8,921

 
$
6,057,766

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


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 of $500 or more 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, the loan is placed on nonaccrual status and 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
June 30, 2018
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
2,634

 
$
2,319

 
$
—

 
$
2,319

 
$
376

Lease financing
335

 
335

 
—

 
335

 
4

Real estate – construction
—

 
—

 
—

 
—

 
—

Real estate – 1-4 family mortgage
8,065

 
6,935

 
—

 
6,935

 
64

Real estate – commercial mortgage
8,901

 
4,454

 
1,316

 
5,770

 
948

Installment loans to individuals
109

 
104

 
—

 
104

 
1

Total
$
20,044

 
$
14,147

 
$
1,316

 
$
15,463

 
$
1,393

December 31, 2017
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
3,043

 
$
2,365

 
$
—

 
$
2,365

 
$
138

Lease financing
159

 
159

 
—

 
159

 
2

Real estate – construction
578

 
578

 
—

 
578

 
4

Real estate – 1-4 family mortgage
10,018

 
8,169

 
703

 
8,872

 
561

Real estate – commercial mortgage
12,463

 
9,652

 
—

 
9,652

 
1,861

Installment loans to individuals
121

 
117

 
—

 
117

 
1

Totals
$
26,382

 
$
21,040

 
$
703

 
$
21,743

 
$
2,567



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
 
June 30, 2018
 
June 30, 2017
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Commercial, financial, agricultural
$
2,663

 
$
8

 
$
1,873

 
$
—

Lease financing
335

 
—

 
—

 
—

Real estate – construction
—

 
—

 
295

 
6

Real estate – 1-4 family mortgage
7,442

 
57

 
8,911

 
89

Real estate – commercial mortgage
5,807

 
38

 
14,487

 
176

Installment loans to individuals
106

 
1

 
160

 
2

Total
$
16,353

 
$
104

 
$
25,726

 
$
273

 
Six Months Ended
 
Six Months Ended
 
June 30, 2018
 
June 30, 2017
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Commercial, financial, agricultural
$
2,653

 
$
19

 
$
2,187

 
$
—

Lease financing
335

 
—

 
—

 
—

Real estate – construction
—

 
—

 
268

 
6

Real estate – 1-4 family mortgage
7,507

 
123

 
8,892

 
110

Real estate – commercial mortgage
6,041

 
130

 
14,635

 
279

Installment loans to individuals
108

 
2

 
166

 
2

Total
$
16,644

 
$
274

 
$
26,148

 
$
397



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 made during the periods presented and held on the Consolidated Balance Sheets at the respective period end:
 
 
Number of
Loans
 
Pre-
Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
Three months ended June 30, 2018
 
 
 
 
 
Real estate – 1-4 family mortgage
1

 
$
49

 
$
49

Total
1

 
$
49

 
$
49

Three months ended June 30, 2017
 
 
 
 
 
Real estate – 1-4 family mortgage
3

 
$
127

 
$
126

Real estate – commercial mortgage
1

 
366

 
62

Installment loans to individuals
1

 
4

 
4

Total
5

 
$
497

 
$
192


 
 
 
 
 
 
 
Number of
Loans
 
Pre-
Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
Six months ended June 30, 2018
 
 
 
 
 
Real estate – 1-4 family mortgage
4

 
$
625

 
$
625

Real estate – commercial mortgage
1

 
83

 
78

Total
5

 
$
708

 
$
703

Six months ended June 30, 2017
 
 
 
 
 
Real estate – 1-4 family mortgage
5

 
$
304

 
$
297

Real estate – commercial mortgage
2

 
453

 
147

Installment loans to individuals
1

 
4

 
4

Total
8

 
$
761

 
$
448



With respect to loans that were restructured during the six months ended June 30, 2018, none have subsequently defaulted as of the date of this report. With respect to loans that were restructured during the six months ended June 30, 2017, $156 subsequently defaulted within twelve months of the restructuring.

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 two restructured loans in the amount of $468 contractually 90 days past due or more and still accruing at June 30, 2018 and one restructured loan in the amount of $71 contractually 90 days past due or more and still accruing at June 30, 2017. The outstanding balance of restructured loans on nonaccrual status was $2,417 and $4,409 at June 30, 2018 and June 30, 2017, respectively.

Changes in the Company’s restructured loans are set forth in the table below:
 
 
Number of
Loans
 
Recorded
Investment
Totals at January 1, 2018
54

 
$
5,588

Additional loans with concessions
5

 
707

Reclassified as performing
2

 
154

Reductions due to:
 
 
 
Reclassified as nonperforming
(5
)
 
(370
)
Paid in full
(5
)
 
(1,268
)
Principal paydowns
—

 
(126
)
Totals at June 30, 2018
51

 
$
4,685



The allocated allowance for loan losses attributable to restructured loans was $37 and $238 at June 30, 2018 and June 30, 2017, respectively. The Company had $22 in remaining availability under commitments to lend additional funds on these restructured loans at June 30, 2018. There was no remaining availability under commitments to lend additional funds on these restructured loans at June 30, 2017.
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 within the “Pass” grade (historically, those with a risk rating between 1 and 4) generally have a lower risk of loss and therefore a lower risk factor applied to the loan balances. Management has established more granular risk rating categories to better identify heightened credit risk as loans migrate downward in the risk rating system. The “Pass” grade is now reserved for loans with a risk rating between 1 and 4A, and the “Watch” grade (those with a risk rating of 4B and 4E) 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 5 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
June 30, 2018
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
576,063

 
$
13,105

 
$
5,015

 
$
594,183

Real estate – construction
575,005

 
8,258

 
125

 
583,388

Real estate – 1-4 family mortgage
281,968

 
1,159

 
6,983

 
290,110

Real estate – commercial mortgage
2,150,721

 
51,372

 
18,826

 
2,220,919

Installment loans to individuals
548

 
—

 
—

 
548

Total
$
3,584,305

 
$
73,894

 
$
30,949

 
$
3,689,148

December 31, 2017
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
554,943

 
$
11,496

 
$
4,402

 
$
570,841

Real estate – construction
483,498

 
662

 
81

 
484,241

Real estate – 1-4 family mortgage
254,643

 
505

 
8,697

 
263,845

Real estate – commercial mortgage
1,983,750

 
50,428

 
24,241

 
2,058,419

Installment loans to individuals
921

 
—

 
—

 
921

Total
$
3,277,755

 
$
63,091

 
$
37,421

 
$
3,378,267



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
June 30, 2018
 
 
 
 
 
Commercial, financial, agricultural
$
194,765

 
$
1,415

 
$
196,180

Lease financing
52,044

 
379

 
52,423

Real estate – construction
58,943

 
49

 
58,992

Real estate – 1-4 family mortgage
1,618,669

 
3,671

 
1,622,340

Real estate – commercial mortgage
333,351

 
685

 
334,036

Installment loans to individuals
104,577

 
70

 
104,647

Total
$
2,362,349

 
$
6,269

 
$
2,368,618

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

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:
 
 
June 30,
2018
 
December 31, 2017
Commercial, financial, agricultural
$
197,455

 
$
275,570

Real estate – construction
70,438

 
85,731

Real estate – 1-4 family mortgage
520,649

 
614,187

Real estate – commercial mortgage
906,219

 
1,037,454

Installment loans to individuals
15,130

 
18,824

Gross loans
1,709,891

 
2,031,766

Unearned income
—

 
—

Loans, net of unearned income
$
1,709,891

 
$
2,031,766



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
June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
894

 
$
514

 
$
195,614

 
$
197,022

 
$
—

 
$
349

 
$
84

 
$
433

 
$
197,455

Real estate – construction
919

 
—

 
69,519

 
70,438

 
—

 
—

 
—

 
—

 
70,438

Real estate – 1-4 family mortgage
3,127

 
2,177

 
512,235

 
517,539

 
260

 
1,236

 
1,614

 
3,110

 
520,649

Real estate – commercial mortgage
1,150

 
2,770

 
901,527

 
905,447

 
430

 
132

 
210

 
772

 
906,219

Installment loans to individuals
73

 
30

 
14,781

 
14,884

 
2

 
93

 
151

 
246

 
15,130

Total
$
6,163

 
$
5,491

 
$
1,693,676

 
$
1,705,330

 
$
692

 
$
1,810

 
$
2,059

 
$
4,561

 
$
1,709,891

December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
1,119

 
$
532

 
$
273,488

 
$
275,139

 
$
—

 
$
199

 
$
232

 
$
431

 
$
275,570

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

Total
$
10,759

 
$
5,731

 
$
2,010,852

 
$
2,027,342

 
$
635

 
$
1,177

 
$
2,612

 
$
4,424

 
$
2,031,766


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
June 30, 2018
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
439

 
$
329

 
$
49

 
$
378

 
$
41

Real estate – 1-4 family mortgage
5,225

 
700

 
3,926

 
4,626

 
12

Real estate – commercial mortgage
1,466

 
1,287

 
156

 
1,443

 
66

Installment loans to individuals
248

 
247

 
—

 
247

 
3

Total
$
7,378

 
$
2,563

 
$
4,131

 
$
6,694

 
$
122

December 31, 2017
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
757

 
$
625

 
$
74

 
$
699

 
$
52

Real estate – construction
1,207

 
—

 
1,199

 
1,199

 
—

Real estate – 1-4 family mortgage
6,173

 
1,385

 
4,225

 
5,610

 
45

Real estate – commercial mortgage
901

 
728

 
165

 
893

 
6

Installment loans to individuals
165

 
154

 
9

 
163

 
4

Totals
$
9,203

 
$
2,892

 
$
5,672

 
$
8,564

 
$
107



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
 
June 30, 2018
 
June 30, 2017
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Commercial, financial, agricultural
$
380

 
$
3

 
$
342

 
$
1

Real estate – 1-4 family mortgage
5,135

 
34

 
4,960

 
47

Real estate – commercial mortgage
1,462

 
12

 
2,515

 
30

Installment loans to individuals
247

 
—

 
19

 
—

Total
$
7,224

 
$
49

 
$
7,836

 
$
78

 
 
 
 
 
 
 
 
 
Six Months Ended
 
Six Months Ended
 
June 30, 2018
 
June 30, 2017
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Commercial, financial, agricultural
$
383

 
$
6

 
$
347

 
$
3

Real estate – 1-4 family mortgage
5,252

 
74

 
5,032

 
62

Real estate – commercial mortgage
1,479

 
30

 
2,284

 
51

Installment loans to individuals
247

 
—

 
21

 
—

Total
$
7,361

 
$
110

 
$
7,684

 
$
116



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
June 30, 2018
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
18,239

 
$
3,845

 
$
6,570

 
$
10,415

 
$
325

Real estate – 1-4 family mortgage
56,339

 
14,254

 
32,122

 
46,376

 
528

Real estate – commercial mortgage
170,327

 
63,365

 
79,328

 
142,693

 
1,400

Installment loans to individuals
1,645

 
715

 
842

 
1,557

 
3

Total
$
246,550

 
$
82,179

 
$
118,862

 
$
201,041

 
$
2,256

December 31, 2017
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
24,179

 
$
5,768

 
$
9,547

 
$
15,315

 
$
312

Real estate – 1-4 family mortgage
65,049

 
15,910

 
38,059

 
53,969

 
572

Real estate – commercial mortgage
186,720

 
65,108

 
91,230

 
156,338

 
892

Installment loans to individuals
1,761

 
698

 
940

 
1,638

 
1

Totals
$
277,709

 
$
87,484

 
$
139,776

 
$
227,260

 
$
1,777



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
 
June 30, 2018
 
June 30, 2017
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Commercial, financial, agricultural
$
12,815

 
$
192

 
$
14,894

 
$
252

Real estate – 1-4 family mortgage
54,634

 
647

 
72,933

 
759

Real estate – commercial mortgage
162,712

 
1,933

 
181,007

 
2,169

Installment loans to individuals
1,651

 
18

 
1,935

 
19

Total
$
231,812

 
$
2,790

 
$
270,769

 
$
3,199


 
Six Months Ended
 
Six Months Ended
 
June 30, 2018
 
June 30, 2017
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Commercial, financial, agricultural
$
13,051

 
$
417

 
$
14,048

 
$
487

Real estate – 1-4 family mortgage
55,293

 
1,320

 
73,656

 
1,582

Real estate – commercial mortgage
163,959

 
3,905

 
182,894

 
4,394

Installment loans to individuals
1,640

 
36

 
1,966

 
38

Total
$
233,943

 
$
5,678

 
$
272,564

 
$
6,501



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 made during the periods presented and held on the Consolidated Balance Sheets at the respective period end:
 
 
Number of
Loans
 
Pre-
Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
Three months ended June 30, 2018
 
 
 
 
 
Real estate – 1-4 family mortgage
1

 
$
18

 
$
17

Total
1

 
$
18

 
$
17

Three months ended June 30, 2017
 
 
 
 
 
Real estate – 1-4 family mortgage
4

 
$
463

 
$
367

Total
4

 
$
463

 
$
367



 
 
 
 
 
 
 
Number of
Loans
 
Pre-
Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
Six months ended June 30, 2018
 
 
 
 
 
Commercial, financial, agricultural
1

 
$
48

 
$
44

Real estate – 1-4 family mortgage
1

 
$
18

 
$
17

Real estate – commercial mortgage
1

 
8

 
7

Total
3

 
$
74

 
$
68

Six months ended June 30, 2017
 
 
 
 
 
Real estate – 1-4 family mortgage
14

 
$
2,684

 
$
2,178

Real estate – commercial mortgage
4

 
2,721

 
1,999

Total
18

 
$
5,405

 
$
4,177



With respect to loans that were restructured during the first six months ended June 30, 2018, none have subsequently defaulted as of the date of this report. With respect to loans that were restructured during the first six months ended June 30, 2017, $368 subsequently defaulted within twelve months of the restructuring.

There were four restructured loans in the amount of $425 contractually 90 days past due or more and still accruing at June 30, 2018 and seven restructured loans in the amount of $534 contractually 90 days past due or more and still accruing at June 30, 2017. The outstanding balance of restructured loans on nonaccrual status was $684 and $446 at June 30, 2018 and June 30, 2017, respectively.

Changes in the Company’s restructured loans are set forth in the table below:
 
 
Number of
Loans
 
Recorded
Investment
Totals at January 1, 2018
68

 
$
8,965

Additional loans with concessions
3

 
132

Reclassified as performing restructured loan
2

 
23

Reductions due to:
 
 
 
Reclassified to nonperforming loans
(4
)
 
(425
)
Paid in full
(1
)
 
(76
)
Principal paydowns
—

 
(486
)
Totals at June 30, 2018
68

 
$
8,133



The allocated allowance for loan losses attributable to restructured loans was $69 and $27 at June 30, 2018 and June 30, 2017, respectively. The Company had $2 and $5 in remaining availability under commitments to lend additional funds on these restructured loans at June 30, 2018 and June 30, 2017, 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
June 30, 2018
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
168,753

 
$
4,562

 
$
3,262

 
$
176,577

Real estate – construction
67,609

 
1,538

 
263

 
69,410

Real estate – 1-4 family mortgage
75,205

 
1,798

 
4,820

 
81,823

Real estate – commercial mortgage
708,999

 
14,634

 
9,541

 
733,174

Installment loans to individuals
627

 
—

 
2

 
629

Total
$
1,021,193

 
$
22,532

 
$
17,888

 
$
1,061,613

December 31, 2017
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
241,195

 
$
4,974

 
$
2,824

 
$
248,993

Real estate – construction
81,220

 
—

 
—

 
81,220

Real estate – 1-4 family mortgage
91,369

 
2,498

 
6,172

 
100,039

Real estate – commercial mortgage
827,372

 
17,123

 
9,003

 
853,498

Installment loans to individuals
678

 
—

 
3

 
681

Total
$
1,241,834

 
$
24,595

 
$
18,002

 
$
1,284,431



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
June 30, 2018
 
 
 
 
 
Commercial, financial, agricultural
$
10,424

 
$
39

 
$
10,463

Real estate – construction
1,028

 
—

 
1,028

Real estate – 1-4 family mortgage
390,746

 
1,704

 
392,450

Real estate – commercial mortgage
30,234

 
118

 
30,352

Installment loans to individuals
12,670

 
274

 
12,944

Total
$
445,102

 
$
2,135

 
$
447,237

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

 
$
46

 
$
11,262

Real estate – construction
4,511


—

 
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



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
June 30, 2018
 
Commercial, financial, agricultural
$
10,415

Real estate – 1-4 family mortgage
46,376

Real estate – commercial mortgage
142,693

Installment loans to individuals
1,557

Total
$
201,041

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

Real estate – 1-4 family mortgage
53,969

Real estate – commercial mortgage
156,338

Installment loans to individuals
1,638

Total
$
227,260



The following table presents the fair value of loans that exhibited evidence of deteriorated credit quality at the time of acquisition at June 30, 2018:
 
 
Total Purchased Credit Deteriorated Loans
Contractually-required principal and interest
$
282,632

Nonaccretable difference(1)
(52,424
)
Cash flows expected to be collected
230,208

Accretable yield(2)
(29,167
)
Fair value
$
201,041

 
(1)
Represents contractual principal and interest cash flows of $43,499 and $8,925, respectively, not expected to be collected.
(2)
Represents contractual principal and interest cash flows of $1,579 and $27,588, respectively, expected to be collected.
Changes in the accretable yield of loans purchased with deteriorated credit quality were as follows as of June 30, 2018:
 
Total Purchased Credit Deteriorated Loans
Balance at January 1, 2018
$
(32,207
)
Reclassification from nonaccretable difference
(3,678
)
Accretion
6,660

Charge-offs
58

Balance at June 30, 2018
$
(29,167
)


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