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Purchased Loans
 3 Months Ended
Mar. 31, 2019
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,
2019
 
December 31, 2018
Commercial, financial, agricultural
$
921,081

 
$
875,649

Lease financing
61,539

 
64,992

Real estate – construction
651,119

 
635,519

Real estate – 1-4 family mortgage
2,114,908

 
2,087,890

Real estate – commercial mortgage
2,726,186

 
2,628,365

Installment loans to individuals
93,654

 
100,424

Gross loans
6,568,487

 
6,392,839

Unearned income
(2,888
)
 
(3,127
)
Loans, net of unearned income
$
6,565,599

 
$
6,389,712



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, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
3,117

 
$
78

 
$
913,608

 
$
916,803

 
$
953

 
$
3,145

 
$
180

 
$
4,278

 
$
921,081

Lease financing
440

 
—

 
61,009

 
61,449

 
—

 
90

 
—

 
90

 
61,539

Real estate – construction
419

 
—

 
650,700

 
651,119

 
—

 
—

 
—

 
—

 
651,119

Real estate – 1-4 family mortgage
16,333

 
1,044

 
2,093,721

 
2,111,098

 
1,056

 
1,466

 
1,288

 
3,810

 
2,114,908

Real estate – commercial mortgage
2,394

 
13

 
2,719,516

 
2,721,923

 
—

 
2,349

 
1,914

 
4,263

 
2,726,186

Installment loans to individuals
392

 
57

 
93,139

 
93,588

 
2

 
64

 
—

 
66

 
93,654

Unearned income
—

 
—

 
(2,888
)
 
(2,888
)
 
—

 
—

 
—

 
—

 
(2,888
)
Total
$
23,095

 
$
1,192

 
$
6,528,805

 
$
6,553,092

 
$
2,011

 
$
7,114

 
$
3,382

 
$
12,507

 
$
6,565,599

December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
3,397

 
$
267

 
$
870,457

 
$
874,121

 
$
—

 
$
1,356

 
$
172

 
$
1,528

 
$
875,649

Lease financing
607

 
89

 
64,296

 
64,992

 
—

 
—

 
—

 
—

 
64,992

Real estate – construction
887

 
—

 
634,632

 
635,519

 
—

 
—

 
—

 
—

 
635,519

Real estate – 1-4 family mortgage
10,378

 
2,151

 
2,071,401

 
2,083,930

 
238

 
2,676

 
1,046

 
3,960

 
2,087,890

Real estate – commercial mortgage
1,880

 
13

 
2,621,902

 
2,623,795

 
—

 
2,974

 
1,596

 
4,570

 
2,628,365

Installment loans to individuals
368

 
165

 
99,731

 
100,264

 
3

 
157

 
—

 
160

 
100,424

Unearned income
—

 
—

 
(3,127
)
 
(3,127
)
 
—

 
—

 
—

 
—

 
(3,127
)
Total
$
17,517

 
$
2,685

 
$
6,359,292

 
$
6,379,494

 
$
241

 
$
7,163

 
$
2,814

 
$
10,218

 
$
6,389,712


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
March 31, 2019
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
4,886

 
$
4,581

 
$
—

 
$
4,581

 
$
983

Lease financing
90

 
90

 
—

 
90

 
1

Real estate – construction
8,485

 
6,320

 
2,165

 
8,485

 
56

Real estate – 1-4 family mortgage
8,739

 
8,415

 
—

 
8,415

 
113

Real estate – commercial mortgage
9,800

 
5,819

 
1,198

 
7,017

 
723

Installment loans to individuals
136

 
129

 
—

 
129

 
1

Total
$
32,136

 
$
25,354

 
$
3,363

 
$
28,717

 
$
1,877

December 31, 2018
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
2,280

 
$
1,834

 
$
—

 
$
1,834

 
$
163

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
9,467

 
7,302

 
2,165

 
9,467

 
63

Real estate – 1-4 family mortgage
9,767

 
9,077

 
—

 
9,077

 
61

Real estate – commercial mortgage
8,625

 
4,609

 
1,238

 
5,847

 
689

Installment loans to individuals
232

 
223

 
—

 
223

 
1

Totals
$
30,371

 
$
23,045

 
$
3,403

 
$
26,448

 
$
977



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, 2019
 
March 31, 2018
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Commercial, financial, agricultural
$
4,634

 
$
10

 
$
2,338

 
$
11

Lease financing
87

 
—

 
159

 
—

Real estate – construction
8,485

 
102

 
150

 
18

Real estate – 1-4 family mortgage
8,490

 
51

 
8,197

 
67

Real estate – commercial mortgage
7,030

 
28

 
6,670

 
92

Installment loans to individuals
149

 
1

 
104

 
1

Total
$
28,875

 
$
192

 
$
17,618

 
$
189

 
 
 
 
 
 
 
 


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 tables below 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. There were no newly restructured loans during the three months ended March 31, 2019.
 
 
 
 
 
 
 
 
Number of
Loans
 
Pre-
Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
Three months ended March 31, 2018
 
 
 
 
 
Real estate – 1-4 family mortgage
3

 
$
576

 
$
576

Real estate – commercial mortgage
1

 
83

 
78

Total
4

 
$
659

 
$
654


With respect to loans that were restructured during the three months ended March 31, 2018, none have 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 no restructured loans contractually 90 days past due or more and still accruing at March 31, 2019 and four restructured loans in the amount of $571 contractually 90 days past due or more and still accruing at March 31, 2018. The outstanding balance of restructured loans on nonaccrual status was $2,976 and $2,570 at March 31, 2019 and March 31, 2018, respectively.

Changes in the Company’s restructured loans are set forth in the table below:
 
 
Number of
Loans
 
Recorded
Investment
Totals at January 1, 2019
51

 
$
5,325

Additional advances or loans with concessions
—

 
2

Reclassified as performing restructured loan
1

 
40

Reductions due to:
 
 
 
Paid in full
(1
)
 
(160
)
Principal paydowns
—

 
(45
)
Totals at March 31, 2019
51

 
$
5,162



The allocated allowance for loan losses attributable to restructured loans was $32 and $92 at March 31, 2019 and March 31, 2018, respectively. The Company had $44 and $20 in remaining availability under commitments to lend additional funds on these restructured loans at March 31, 2019 and March 31, 2018, respectively.
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
March 31, 2019
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
675,107

 
$
15,523

 
$
11,533

 
$
702,163

Real estate – construction
570,637

 
5,469

 
8,157

 
584,263

Real estate – 1-4 family mortgage
319,715

 
4,619

 
3,585

 
327,919

Real estate – commercial mortgage
2,308,236

 
50,355

 
24,550

 
2,383,141

Installment loans to individuals
—

 
—

 
—

 
—

Total
$
3,873,695

 
$
75,966

 
$
47,825

 
$
3,997,486

December 31, 2018
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
615,803

 
$
18,326

 
$
6,973

 
$
641,102

Real estate – construction
558,494

 
2,317

 
8,157

 
568,968

Real estate – 1-4 family mortgage
321,564

 
4,660

 
4,260

 
330,484

Real estate – commercial mortgage
2,210,100

 
54,579

 
24,144

 
2,288,823

Installment loans to individuals
—

 
—

 
—

 
—

Total
$
3,705,961

 
$
79,882

 
$
43,534

 
$
3,829,377



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, 2019
 
 
 
 
 
Commercial, financial, agricultural
$
217,572

 
$
1,346

 
$
218,918

Lease financing
58,562

 
89

 
58,651

Real estate – construction
66,856

 
—

 
66,856

Real estate – 1-4 family mortgage
1,782,390

 
4,599

 
1,786,989

Real estate – commercial mortgage
342,170

 
875

 
343,045

Installment loans to individuals
93,532

 
122

 
93,654

Total
$
2,561,082

 
$
7,031

 
$
2,568,113

December 31, 2018
 
 
 
 
 
Commercial, financial, agricultural
$
233,046

 
$
1,501

 
$
234,547

Lease financing
61,776

 
89

 
61,865

Real estate – construction
66,551

 
—

 
66,551

Real estate – 1-4 family mortgage
1,751,994

 
5,412

 
1,757,406

Real estate – commercial mortgage
338,367

 
1,175

 
339,542

Installment loans to individuals
100,099

 
325

 
100,424

Total
$
2,551,833

 
$
8,502

 
$
2,560,335

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,
2019
 
December 31, 2018
Commercial, financial, agricultural
$
387,376

 
$
420,263

Real estate – construction
89,954

 
105,149

Real estate – 1-4 family mortgage
654,265

 
707,453

Real estate – commercial mortgage
1,357,446

 
1,423,144

Installment loans to individuals
33,653

 
37,408

Gross loans
2,522,694

 
2,693,417

Unearned income
—

 
—

Loans, net of unearned income
$
2,522,694

 
$
2,693,417



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, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
5,596

 
$
607

 
$
379,993

 
$
386,196

 
$
311

 
$
523

 
$
346

 
$
1,180

 
$
387,376

Real estate – construction
2,258

 
—

 
87,696

 
89,954

 
—

 
—

 
—

 
—

 
89,954

Real estate – 1-4 family mortgage
9,631

 
2,653

 
637,630

 
649,914

 
299

 
2,079

 
1,973

 
4,351

 
654,265

Real estate – commercial mortgage
2,605

 
1,903

 
1,351,020

 
1,355,528

 
—

 
1,460

 
458

 
1,918

 
1,357,446

Installment loans to individuals
956

 
273

 
32,045

 
33,274

 
1

 
128

 
250

 
379

 
33,653

Total
$
21,046

 
$
5,436

 
$
2,488,384

 
$
2,514,866

 
$
611

 
$
4,190

 
$
3,027

 
$
7,828

 
$
2,522,694

December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
1,811

 
$
97

 
$
417,786

 
$
419,694

 
$
—

 
$
477

 
$
92

 
$
569

 
$
420,263

Real estate – construction
1,235

 
68

 
103,846

 
105,149

 
—

 
—

 
—

 
—

 
105,149

Real estate – 1-4 family mortgage
8,981

 
4,455

 
690,697

 
704,133

 
202

 
1,881

 
1,237

 
3,320

 
707,453

Real estate – commercial mortgage
5,711

 
2,410

 
1,413,346

 
1,421,467

 
—

 
1,401

 
276

 
1,677

 
1,423,144

Installment loans to individuals
1,342

 
202

 
35,594

 
37,138

 
2

 
24

 
244

 
270

 
37,408

Total
$
19,080

 
$
7,232

 
$
2,661,269

 
$
2,687,581

 
$
204

 
$
3,783

 
$
1,849

 
$
5,836

 
$
2,693,417


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, 2019
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
1,287

 
$
914

 
$
314

 
$
1,228

 
$
198

Real estate – construction
320

 
320

 
—

 
320

 
2

Real estate – 1-4 family mortgage
6,177

 
896

 
4,641

 
5,537

 
14

Real estate – commercial mortgage
2,718

 
1,858

 
567

 
2,425

 
119

Installment loans to individuals
409

 
322

 
57

 
379

 
3

Total
$
10,911

 
$
4,310

 
$
5,579

 
$
9,889

 
$
336

December 31, 2018
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
671

 
$
600

 
$
11

 
$
611

 
$
173

Real estate – construction
576

 
576

 
—

 
576

 
5

Real estate – 1-4 family mortgage
5,787

 
1,381

 
3,780

 
5,161

 
18

Real estate – commercial mortgage
2,266

 
2,066

 
146

 
2,212

 
338

Installment loans to individuals
280

 
246

 
24

 
270

 
3

Totals
$
9,580

 
$
4,869

 
$
3,961

 
$
8,830

 
$
537



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, 2019
 
March 31, 2018
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Commercial, financial, agricultural
$
1,242

 
$
3

 
$
363

 
$
3

Real estate – construction
320

 
—

 
252

 
1

Real estate – 1-4 family mortgage
5,577

 
42

 
6,320

 
40

Real estate – commercial mortgage
2,630

 
12

 
1,642

 
18

Installment loans to individuals
397

 
—

 
160

 
—

Total
$
10,166

 
$
57

 
$
8,737

 
$
62

 
 
 
 
 
 
 
 


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
March 31, 2019
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
39,542

 
$
3,292

 
$
21,555

 
$
24,847

 
$
129

Real estate – 1-4 family mortgage
52,787

 
10,715

 
33,109

 
43,824

 
420

Real estate – commercial mortgage
158,927

 
59,827

 
76,455

 
136,282

 
1,973

Installment loans to individuals
7,555

 
665

 
3,228

 
3,893

 
2

Total
$
258,811

 
$
74,499

 
$
134,347

 
$
208,846

 
$
2,524

December 31, 2018
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
44,403

 
$
3,779

 
$
25,364

 
$
29,143

 
$
161

Real estate – 1-4 family mortgage
53,823

 
12,169

 
36,074

 
48,243

 
488

Real estate – commercial mortgage
165,700

 
62,003

 
78,435

 
140,438

 
1,901

Installment loans to individuals
8,290

 
660

 
3,770

 
4,430

 
2

Totals
$
272,216

 
$
78,611

 
$
143,643

 
$
222,254

 
$
2,552



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, 2019
 
March 31, 2018
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Commercial, financial, agricultural
$
27,403

 
$
427

 
$
16,899

 
$
225

Real estate – 1-4 family mortgage
44,177

 
572

 
58,749

 
673

Real estate – commercial mortgage
137,421

 
1,796

 
167,365

 
1,972

Installment loans to individuals
4,144

 
106

 
1,687

 
18

Total
$
213,145

 
$
2,901

 
$
244,700

 
$
2,888


 
 
 
 
 
 
 
 


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 tables below 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. There were no newly restructured loans during the three months ended March 31, 2019.

 
 
 
 
 
 
 



 
 
 
 
 
 
 
Number of
Loans
 
Pre-
Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
Three months ended March 31, 2018
 
 
 
 
 
Commercial, financial, agricultural
1

 
$
48

 
$
44

Real estate – commercial mortgage
1

 
8

 
7

Total
2

 
$
56

 
$
51



With respect to loans that were restructured during the three months ended March 31, 2018, none have subsequently defaulted within twelve months of the restructuring.

There were four restructured loans in the amount of $414 contractually 90 days past due or more and still accruing at March 31, 2019 and no restructured loans contractually 90 days past due or more and still accruing at March 31, 2018. The outstanding balance of restructured loans on nonaccrual status was $1,851 and $616 at March 31, 2019 and March 31, 2018, respectively.

Changes in the Company’s restructured loans are set forth in the table below:
 
 
Number of
Loans
 
Recorded
Investment
Totals at January 1, 2019
54

 
$
7,495

Additional advances or loans with concessions
—

 
174

Reclassified as performing restructured loan
5

 
212

Reductions due to:
 
 
 
Reclassified to nonperforming loans
(2
)
 
(269
)
Paid in full
(2
)
 
(104
)
Principal paydowns
—

 
(261
)
Totals at March 31, 2019
55

 
$
7,247



The allocated allowance for loan losses attributable to restructured loans was $86 and $100 at March 31, 2019 and March 31, 2018, respectively. The Company had $3 and $2 in remaining availability under commitments to lend additional funds on these restructured loans at March 31, 2019 and March 31, 2018, 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, 2019
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
304,994

 
$
31,682

 
$
6,355

 
$
343,031

Real estate – construction
85,670

 
—

 
—

 
85,670

Real estate – 1-4 family mortgage
99,772

 
5,741

 
6,698

 
112,211

Real estate – commercial mortgage
1,109,980

 
65,879

 
13,171

 
1,189,030

Installment loans to individuals
—

 
—

 
1

 
1

Total
$
1,600,416

 
$
103,302

 
$
26,225

 
$
1,729,943

December 31, 2018
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
333,147

 
$
33,857

 
$
2,744

 
$
369,748

Real estate – construction
101,122

 
—

 
842

 
101,964

Real estate – 1-4 family mortgage
113,874

 
7,347

 
7,585

 
128,806

Real estate – commercial mortgage
1,198,540

 
43,046

 
9,984

 
1,251,570

Installment loans to individuals
—

 
—

 
2

 
2

Total
$
1,746,683

 
$
84,250

 
$
21,157

 
$
1,852,090



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, 2019
 
 
 
 
 
Commercial, financial, agricultural
$
19,454

 
$
44

 
$
19,498

Real estate – construction
4,284

 
—

 
4,284

Real estate – 1-4 family mortgage
494,730

 
3,500

 
498,230

Real estate – commercial mortgage
32,023

 
111

 
32,134

Installment loans to individuals
29,324

 
435

 
29,759

Total
$
579,815

 
$
4,090

 
$
583,905

December 31, 2018
 
 
 
 
 
Commercial, financial, agricultural
$
21,303

 
$
69

 
$
21,372

Real estate – construction
3,185


—

 
3,185

Real estate – 1-4 family mortgage
526,699

 
3,705

 
530,404

Real estate – commercial mortgage
30,951

 
185

 
31,136

Installment loans to individuals
32,676

 
300

 
32,976

Total
$
614,814

 
$
4,259

 
$
619,073



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, 2019
 
Commercial, financial, agricultural
$
24,847

Real estate – 1-4 family mortgage
43,824

Real estate – commercial mortgage
136,282

Installment loans to individuals
3,893

Total
$
208,846

December 31, 2018
 
Commercial, financial, agricultural
$
29,143

Real estate – 1-4 family mortgage
48,243

Real estate – commercial mortgage
140,438

Installment loans to individuals
4,430

Total
$
222,254



The following table presents the fair value of loans that exhibited evidence of deteriorated credit quality at the time of acquisition at March 31, 2019:
 
 
Total Purchased Credit Deteriorated Loans
Contractually-required principal and interest
$
297,164

Nonaccretable difference(1)
(57,848
)
Cash flows expected to be collected
239,316

Accretable yield(2)
(30,470
)
Fair value
$
208,846

 
(1)
Represents contractual principal and interest cash flows of $47,930 and $9,918, respectively, not expected to be collected.
(2)
Represents contractual principal and interest cash flows of $1,606 and $28,864, respectively, expected to be collected.
Changes in the accretable yield of loans purchased with deteriorated credit quality were as follows as of March 31, 2019:
 
Total Purchased Credit Deteriorated Loans
Balance at January 1, 2019
$
(34,265
)
Reclassification from nonaccretable difference
(2,657
)
Accretion
5,582

Charge-offs
870

Balance at March 31, 2019
$
(30,470
)


The following table presents the fair value of loans purchased from Brand as of the September 1, 2018 acquisition date.
At acquisition date:
 
September 1, 2018
  Contractually-required principal and interest
 
$
1,625,079

  Nonaccretable difference
 
(123,399
)
  Cash flows expected to be collected
 
1,501,680

  Accretable yield
 
(170,651
)
      Fair value
 
$
1,331,029