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Purchased Loans
 3 Months Ended
Mar. 31, 2020
Receivables [Abstract]  
Purchased Loans Non Purchased Loans
(In Thousands, Except Number of Loans)

For purposes of this Note 3, all references to “loans” mean non purchased loans excluding loans held for sale.

The following is a summary of non purchased loans and leases as of the dates presented:
 
 
March 31,
2020
 
December 31, 2019
Commercial, financial, agricultural
$
1,144,004

 
$
1,052,353

Lease financing
88,351

 
85,700

Real estate – construction:
 
 
 
Residential
277,551

 
272,643

Commercial
467,515

 
502,258

Total real estate – construction
745,066

 
774,901

Real estate – 1-4 family mortgage:


 


Primary
1,466,887

 
1,449,219

Home equity
449,263

 
456,265

Rental/investment
285,244

 
291,931

Land development
155,233

 
152,711

Total real estate – 1-4 family mortgage
2,356,627

 
2,350,126

Real estate – commercial mortgage:
 
 
 
Owner-occupied
1,244,919

 
1,209,204

Non-owner occupied
1,874,559

 
1,803,587

Land development
122,694

 
116,085

Total real estate – commercial mortgage
3,242,172

 
3,128,876

Installment loans to individuals
229,856

 
199,843

Gross loans
7,806,076

 
7,591,799

Unearned income
(3,672
)
 
(3,825
)
Loans, net of unearned income
$
7,802,404

 
$
7,587,974



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 Company recognized $21 in interest income on nonaccrual non purchased loans during the first quarter of 2020.
The following table provides an aging of past due accruing and nonaccruing 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, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
3,361

 
$
96

 
$
1,135,968

 
$
1,139,425

 
$
118

 
$
4,410

 
$
51

 
$
4,579

 
$
1,144,004

Lease financing
—

 
51

 
88,074

 
88,125

 
—

 
226

 
—

 
226

 
88,351

Real estate – construction:
 
 
 
 
 
 


 
 
 
 
 
 
 


 


Residential
267

 
284

 
274,272

 
274,823

 
—

 
2,728

 
—

 
2,728

 
277,551

Commercial
—

 
—

 
467,515

 
467,515

 
—

 
—

 
—

 
—

 
467,515

Total real estate – construction
267

 
284

 
741,787

 
742,338

 
—

 
2,728

 
—

 
2,728

 
745,066

Real estate – 1-4 family mortgage:
 
 
 
 
 
 


 
 
 
 
 
 
 


 


Primary
20,213

 
1,859

 
1,436,829

 
1,458,901

 
898

 
4,279

 
2,809

 
7,986

 
1,466,887

Home equity
1,184

 
720

 
446,756

 
448,660

 
31

 
394

 
178

 
603

 
449,263

Rental/investment
1,339

 
56

 
283,403

 
284,798

 
—

 
438

 
8

 
446

 
285,244

Land development
137

 
7

 
155,021

 
155,165

 
—

 
31

 
37

 
68

 
155,233

Total real estate – 1-4 family mortgage
22,873

 
2,642

 
2,322,009

 
2,347,524

 
929

 
5,142

 
3,032

 
9,103

 
2,356,627

Real estate – commercial mortgage:
 
 
 
 
 
 


 
 
 
 
 
 
 


 


Owner-occupied
2,868

 
889

 
1,237,360

 
1,241,117

 
870

 
2,538

 
394

 
3,802

 
1,244,919

Non-owner occupied
362

 
320

 
1,873,172

 
1,873,854

 
—

 
380

 
325

 
705

 
1,874,559

Land development
464

 
78

 
122,047

 
122,589

 
—

 
105

 
—

 
105

 
122,694

Total real estate – commercial mortgage
3,694

 
1,287

 
3,232,579

 
3,237,560

 
870

 
3,023

 
719

 
4,612

 
3,242,172

Installment loans to individuals
901

 
99

 
228,720

 
229,720

 
—

 
129

 
7

 
136

 
229,856

Unearned income
—

 
—

 
(3,672
)
 
(3,672
)
 
—

 
—

 
—

 
—

 
(3,672
)
Loans, net of unearned income
$
31,096

 
$
4,459

 
$
7,745,465

 
$
7,781,020

 
$
1,917

 
$
15,658

 
$
3,809

 
$
21,384

 
$
7,802,404

 
 
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, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
605

 
$
476

 
$
1,045,802

 
$
1,046,883

 
$
387

 
$
5,023

 
$
60

 
$
5,470

 
$
1,052,353

Lease financing
—

 
—

 
85,474

 
85,474

 
—

 
226

 
—

 
226

 
85,700

Real estate – construction
794

 
—

 
774,107

 
774,901

 
—

 
—

 
—

 
—

 
774,901

Real estate – 1-4 family mortgage
18,020

 
2,502

 
2,320,328

 
2,340,850

 
623

 
6,571

 
2,082

 
9,276

 
2,350,126

Real estate – commercial mortgage
2,362

 
276

 
3,119,785

 
3,122,423

 
372

 
4,655

 
1,426

 
6,453

 
3,128,876

Installment loans to individuals
1,000

 
204

 
198,555

 
199,759

 
—

 
17

 
67

 
84

 
199,843

Unearned income
—

 
—

 
(3,825
)
 
(3,825
)
 
—

 
—

 
—

 
—

 
(3,825
)
Total
$
22,781

 
$
3,458

 
$
7,540,226

 
$
7,566,465

 
$
1,382

 
$
16,492

 
$
3,635

 
$
21,509

 
$
7,587,974


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, 2020
 
 
 
 
 
Commercial, financial, agricultural
2

 
$
898

 
$
898

Real estate – 1-4 family mortgage:
 
 
 
 
 
Primary
3

 
447

 
449

Total
5

 
$
1,345

 
$
1,347

 
 
 
 
 
 
 
 
 
 
 
 

With respect to loans that were restructured during the three months ended March 31, 2020, none have subsequently defaulted as of the date of this report.

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 $164 contractually 90 days past due or more and still accruing at March 31, 2020 and no restructured loans contractually 90 days past due or more and still accruing at March 31, 2019. The outstanding balance of restructured loans on nonaccrual status was $2,596 and $2,976 at March 31, 2020 and March 31, 2019, respectively.

Changes in the Company’s restructured loans are set forth in the table below:
 
 
Number of
Loans
 
Recorded
Investment
Totals at January 1, 2020
46

 
$
4,679

Additional advances or loans with concessions
5

 
1,365

Reclassified as performing restructured loan
1

 
58

Reductions due to:
 
 
 
Principal paydowns
—

 
(42
)
Totals at March 31, 2020
52

 
$
6,060



The allocated allowance for credit losses on loans attributable to restructured loans was $193 and $32 at March 31, 2020 and March 31, 2019, respectively. The Company had no remaining availability under commitments to lend additional funds on these restructured loans at March 31, 2020 and $44 at March 31, 2019.

Due to the current economic environment caused by the COVID-19 pandemic, the Company implemented a loan deferral program in March 2020 that provides temporary payment relief to both consumer and commercial customers. Any customer that is current on loan payments, taxes and insurance can qualify for a 90-day deferral of principal and interest payments. The Company’s loan deferral program complies with the guidance set forth in the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act and related guidance from the FDIC and other banking regulators. Through April 30, 2020, the Company has granted temporary
modifications on approximately 2,900 non purchased loans with total balances of approximately $1,285,000. In accordance with the applicable guidance, none of these loans were considered “restructured loans”.
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 generally have a lower risk of loss and therefore a lower risk factor applied to the loan balances. The “Pass” grade is reserved for loans with a risk rating between 1 and 4A, and the “Pass-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. During the first quarter of 2020, the Company proactively downgraded from “Pass” to “Pass-Watch” rated loans greater than $1,000 in certain industries the Company believes pose a greater risk in the current environment (i.e. hotel/motel, restaurant and entertainment industries). The following table presents the Company’s loan portfolio by year of origination and internal risk-rating grades as of the dates presented:
 
Term Loans Amortized Cost Basis by Origination Year
 
 
 
 
2020
2019
2018
2017
2016
Prior
Revolving Loans
Revolving Loans Converted to Term
Total
Loans
March 31, 2020
 
 
 
 
 
 
 
 
 
Commercial, Financial, Agricultural
$
76,216

$
274,388

$
103,827

$
66,812

$
27,657

$
31,662

$
282,822

$
13,979

$
877,363

Pass
75,035

253,990

102,161

63,688

23,890

29,693

274,646

12,443

835,546

Pass-Watch
1,181

19,667

244

989

2,692

63

7,916

886

33,638

Substandard
—

731

1,422

2,135

1,075

1,906

260

650

8,179

 
 
 
 


 
 
 
 


Real Estate - Construction
$
75,514

$
396,047

$
81,619

$
83,621

$
27,389

$
—

$
14,443

$
75

$
678,708

Residential
$
55,230

$
143,139

$
11,881

$
—

$
—

$
—

$
6,770

$
75

$
217,095

Pass
55,230

143,075

9,153

—

—

—

6,770

75

214,303

Pass-Watch
—

—

—

—

—

—

—

—

—

Substandard
—

64

2,728

—

—

—

—

—

2,792

 
 
 
 
 
 
 
 
 


Commercial
$
20,284

$
252,908

$
69,738

$
83,621

$
27,389

$
—

$
7,673

$
—

$
461,613

Pass
18,921

234,161

65,170

83,123

27,389

—

7,673

—

436,437

Pass-Watch
1,363

18,747

4,568

498

—

—

—

—

25,176

Substandard
—

—

—

—

—

—

—

—

—

 
 
 
 
 
 
 
 
 


Real Estate - 1-4 Family Mortgage
$
27,595

$
129,544

$
84,743

$
43,367

$
23,235

$
20,005

$
15,029

$
388

$
343,906

Primary
$
4,406

$
9,533

$
8,090

$
6,261

$
1,497

$
2,865

$
960

$
—

$
33,612

Pass
4,406

9,533

7,917

6,261

1,214

2,846

960

—

33,137

Pass-Watch
—

—

—

—

—

2

—

—

2

Substandard
—

—

173

—

283

17

—

—

473

 
 
 
 
 
 
 
 
 


Home Equity
$
—

$
793

$
327

$
—

$
—

$
—

$
10,327

$
—

$
11,447

Pass
—

793

327

—

—

—

10,201

—

11,321

Pass-Watch
—

—

—

—

—

—

126

—

126

Substandard
—

—

—

—

—

—

—

—

—

 
 
 
 
 
 
 
 
 


Rental/Investment
$
7,743

$
48,761

$
38,003

$
36,312

$
21,206

$
16,665

$
1,333

$
388

$
170,411

Pass
7,743

46,959

37,502

35,287

18,978

15,438

1,233

388

163,528

Pass-Watch
—

388

232

952

2,001

652

100

—

4,325

Substandard
—

1,414

269

73

227

575

—

—

2,558

 
 
 
 
 
 
 
 
 


Land Development
$
15,446

$
70,457

$
38,323

$
794

$
532

$
475

$
2,409

$
—

$
128,436

Pass
15,446

69,674

37,379

794

523

435

2,409

—

126,660

Pass-Watch
—

243

944

—

—

40

—

—

1,227

 
Term Loans Amortized Cost Basis by Origination Year
 
 
 
 
2020
2019
2018
2017
2016
Prior
Revolving Loans
Revolving Loans Converted to Term
Total
Loans
Substandard
—

540

—

—

9

—

—

—

549

 
 
 
 
 
 
 
 
 


Real Estate - Commercial Mortgage
$
236,893

$
809,437

$
533,181

$
435,460

$
414,685

$
385,780

$
77,005

$
18,918

$
2,911,359

Owner-Occupied
$
56,096

$
247,602

$
223,225

$
199,741

$
144,544

$
125,555

$
32,773

$
6,365

$
1,035,901

Pass
52,629

238,900

193,125

175,474

115,879

111,230

28,180

6,365

921,782

Pass-Watch
2,792

8,277

26,581

19,904

24,663

12,716

2,653

—

97,586

Substandard
675

425

3,519

4,363

4,002

1,609

1,940

—

16,533

 
 
 
 
 
 
 
 
 


Non-Owner Occupied
$
165,686

$
530,660

$
292,062

$
229,628

$
264,488

$
253,359

$
41,360

$
12,553

$
1,789,796

Pass
156,333

490,667

259,332

184,826

194,725

200,141

35,564

12,425

1,534,013

Pass-Watch
9,353

39,775

32,730

43,202

69,763

52,275

5,796

128

253,022

Substandard
—

218

—

1,600

—

943

—

—

2,761

 
 
 
 
 
 
 
 
 


Land Development
$
15,111

$
31,175

$
17,894

$
6,091

$
5,653

$
6,866

$
2,872

$
—

$
85,662

Pass
13,239

31,175

16,213

6,091

3,880

6,790

2,872

—

80,260

Pass-Watch
1,872

—

1,681

—

—

—

—

—

3,553

Substandard
—

—

—

—

1,773

76

—

—

1,849

 
 
 
 
 
 
 
 
 


Installment loans to individuals
$
—

$
7

$
—

$
—

$
—

$
—

$
—

$
—

$
7

Pass
—

7

—

—

—

—

—

—

7

Pass-Watch
—

—

—

—

—

—

—

—

—

Substandard
—

—

—

—

—

—

—

—

—

 
 
 
 
 
 
 
 
 
 
Total loans subject to risk rating
$
416,218

$
1,609,423

$
803,370

$
629,260

$
492,966

$
437,447

$
389,299

$
33,360

$
4,811,343

Pass
398,982

1,518,934

728,279

555,544

386,478

366,573

370,508

31,696

4,356,994

Pass-Watch
16,561

87,097

66,980

65,545

99,119

65,748

16,591

1,014

418,655

Substandard
675

3,392

8,111

8,171

7,369

5,126

2,200

650

35,694


The following table presents the performing status of the Company’s loan portfolio not subject to risk rating as of the dates presented:
 
Term Loans Amortized Cost Basis by Origination Year
 
 
 
 
2020
2019
2018
2017
2016
Prior
Revolving Loans
Revolving Loans Converted to Term
Total
Loans
March 31, 2020
 
 
 
 
 
 
 
 
 
Commercial, Financial, Agricultural
$
8,855

$
28,004

$
16,678

$
10,734

$
4,892

$
16,913

$
180,110

$
455

$
266,641

Performing Loans
8,855

27,955

16,631

10,159

4,891

16,870

179,750

392

265,503

Non-Performing Loans
—

49

47

575

1

43

360

63

1,138

 
 
 
 
 
 
 
 
 
 
Lease Financing Receivables
$
9,209

$
38,374

$
21,422

$
6,999

$
3,854

$
4,821

$
—

$
—

$
84,679

Performing Loans
9,209

38,374

21,422

6,999

3,628

4,770

—

—

84,402

Non-Performing Loans
—

—

—

—

226

51

—

—

277

 
 
 
 
 
 
 
 
 
 
Real Estate - Construction
$
5,984

$
51,279

$
7,813

$
743

$
223

$
—

$
316

$
—

$
66,358

Residential
$
4,862

$
47,636

$
7,063

$
511

$
68

$
—

$
316

$
—

$
60,456

Performing Loans
4,862

47,636

6,871

511

68

—

316

—

60,264

Non-Performing Loans
—

—

192

—

—

—

—

—

192

 
 
 
 
 
 
 
 
 
 
Commercial
$
1,122

$
3,643

$
750

$
232

$
155

$
—

$
—

$
—

$
5,902

Performing Loans
1,122

3,643

750

232

155

—

—

—

5,902

Non-Performing Loans
—

—

—

—

—

—

—

—

—

 
 
 
 
 
 
 
 
 
 

 
Term Loans Amortized Cost Basis by Origination Year
 
 
 
 
2020
2019
2018
2017
2016
Prior
Revolving Loans
Revolving Loans Converted to Term
Total
Loans
Real Estate - 1-4 Family Mortgage
$
91,729

$
439,545

$
375,081

$
267,794

$
143,083

$
255,576

$
436,912

$
3,001

$
2,012,721

Primary
$
78,600

$
400,107

$
345,036

$
239,952

$
126,621

$
241,563

$
1,094

$
302

$
1,433,275

Performing Loans
78,600

399,661

341,058

238,066

125,960

238,923

1,034

302

1,423,604

Non-Performing Loans
—

446

3,978

1,886

661

2,640

60

—

9,671

 
 
 
 
 
 
 
 
 
 
Home Equity
$
—

$
306

$
386

$
205

$
45

$
1,245

$
433,318

$
2,311

$
437,816

Performing Loans
—

306

386

205

45

1,125

432,263

2,163

436,493

Non-Performing Loans
—

—

—

—

—

120

1,055

148

1,323

 
 
 
 
 
 
 
 
 
 
Rental/Investment
$
7,889

$
29,839

$
24,761

$
24,579

$
15,021

$
10,788

$
1,568

$
388

$
114,833

Performing Loans
7,889

29,839

24,705

24,549

14,973

10,689

1,568

388

114,600

Non-Performing Loans
—

—

56

30

48

99

—

—

233

 
 
 
 
 
 
 
 
 
 
Land Development
$
5,240

$
9,293

$
4,898

$
3,058

$
1,396

$
1,980

$
932

$
—

$
26,797

Performing Loans
5,240

9,273

4,879

3,022

1,396

1,980

932

—

26,722

Non-Performing Loans
—

20

19

36

—

—

—

—

75

 
 
 
 
 
 
 
 
 
 
Real Estate - Commercial Mortgage
$
23,887

$
83,163

$
71,819

$
57,390

$
44,728

$
34,602

$
14,934

$
290

$
330,813

Owner-Occupied
$
14,795

$
49,969

$
45,312

$
37,701

$
29,621

$
23,279

$
8,107

$
234

$
209,018

Performing Loans
14,795

49,917

44,958

37,244

29,493

22,225

8,107

234

206,973

Non-Performing Loans
—

52

354

457

128

1,054

—

—

2,045

 
 
 
 
 
 
 
 
 
 
Non-Owner Occupied
$
6,173

$
21,808

$
19,144

$
15,746

$
10,513

$
7,688

$
3,691

$
—

$
84,763

Performing Loans
6,173

21,808

19,144

15,746

10,513

7,299

3,691

—

84,374

Non-Performing Loans
—

—

—

—

—

389

—

—

389

 
 
 
 
 
 
 
 
 
 
Land Development
$
2,919

$
11,386

$
7,363

$
3,943

$
4,594

$
3,635

$
3,136

$
56

$
37,032

Performing Loans
2,919

11,368

7,363

3,932

4,594

3,635

3,136

56

37,003

Non-Performing Loans
—

18

—

11

—

—

—

—

29

 
 
 
 
 
 
 
 
 
 
Installment loans to individuals
$
43,867

$
137,404

$
22,035

$
7,031

$
3,918

$
2,659

$
12,832

$
103

$
229,849

Performing Loans
43,867

137,339

21,953

6,996

3,879

2,646

12,831

102

229,613

Non-Performing Loans
—

65

82

35

39

13

1

1

236

 
 
 
 
 
 
 
 
 
 
Total loans not subject to risk rating
$
183,531

$
777,769

$
514,848

$
350,691

$
200,698

$
314,571

$
645,104

$
3,849

$
2,991,061

Performing Loans
183,531

777,119

510,120

347,661

199,595

310,162

643,628

3,637

2,975,453

Non-Performing Loans
—

650

4,728

3,030

1,103

4,409

1,476

212

15,608



The following disclosures are presented under GAAP in effect prior to the adoption of CECL. The Company has included these disclosures to address the applicable prior periods.

A discussion of the Company’s policies regarding internal risk-rating of loans is discussed above and is applicable to these tables. The following table presents the Company’s loan portfolio by internal risk-rating grades as of the dates presented:

 
Pass
 
Watch
 
Substandard
 
Total
December 31, 2019
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
779,798

 
$
11,949

 
$
11,715

 
$
803,462

Real estate – construction
698,950

 
501

 
9,209

 
708,660

Real estate – 1-4 family mortgage
339,079

 
3,856

 
3,572

 
346,507

Real estate – commercial mortgage
2,737,629

 
31,867

 
26,711

 
2,796,207

Installment loans to individuals
6

 
—

 
—

 
6

Total
$
4,555,462

 
$
48,173

 
$
51,207

 
$
4,654,842


 
 
Performing
 
Non-
Performing
 
Total
December 31, 2019
 
 
 
 
 
Commercial, financial, agricultural
$
247,575

 
$
1,316

 
$
248,891

Lease financing
81,649

 
226

 
81,875

Real estate – construction
66,241

 
—

 
66,241

Real estate – 1-4 family mortgage
1,992,331

 
11,288

 
2,003,619

Real estate – commercial mortgage
330,714

 
1,955

 
332,669

Installment loans to individuals
199,549

 
288

 
199,837

Total
$
2,918,059

 
$
15,073

 
$
2,933,132



The following disclosures are presented under GAAP in effect prior to the adoption of CECL that are no longer applicable or required. The Company has included these disclosures to address the applicable prior periods.
Impaired Loans
Loans formerly 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 date presented:

 
Unpaid
Contractual
Principal
Balance
 
Recorded
Investment
With
Allowance
 
Recorded
Investment
With No
Allowance
 
Total
Recorded
Investment
 
Related
Allowance
December 31, 2019
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
6,623

 
$
5,722

 
$
—

 
$
5,722

 
$
1,222

Lease financing
226

 
226

 
—

 
226

 
3

Real estate – construction
9,145

 
—

 
9,145

 
9,145

 
—

Real estate – 1-4 family mortgage
14,018

 
13,689

 
—

 
13,689

 
143

Real estate – commercial mortgage
11,067

 
7,361

 
1,080

 
8,441

 
390

Installment loans to individuals
91

 
84

 
—

 
84

 
1

Totals
$
41,170

 
$
27,082

 
$
10,225

 
$
37,307

 
$
1,759


The following table presents the average recorded investment and interest income recognized on loans formerly accounted for under ASC 310-20 and which are impaired loans for the period presented:
 
Three Months Ended
 
March 31, 2019
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Commercial, financial, agricultural
$
4,634

 
$
10

Lease financing
87

 
—

Real estate – construction
8,485

 
102

Real estate – 1-4 family mortgage
8,490

 
51

Real estate – commercial mortgage
7,030

 
28

Installment loans to individuals
149

 
1

Total
$
28,875

 
$
192


Purchased Loans
(In Thousands, Except Number of Loans)

For purposes of this Note 4, all references to “loans” mean purchased loans excluding loans held for sale.

The following is a summary of purchased loans as of the dates presented:
 
 
March 31,
2020
 
December 31, 2019
Commercial, financial, agricultural
$
280,572

 
$
315,619

Real estate – construction:
 
 
 
Residential
11,449

 
16,407

Commercial
31,380

 
35,175

Total real estate – construction
42,829

 
51,582

Real estate – 1-4 family mortgage:


 


Primary
309,549

 
332,729

Home equity
114,463

 
117,275

Rental/investment
44,222

 
43,169

Land development
21,440

 
23,314

Total real estate – 1-4 family mortgage
489,674

 
516,487

Real estate – commercial mortgage:
 
 
 
Owner-occupied
418,079

 
428,077

Non-owner occupied
610,383

 
647,308

Land development
38,074

 
40,004

Total real estate – commercial mortgage
1,066,536

 
1,115,389

Installment loans to individuals
87,362

 
102,587

Loans, net of unearned income
$
1,966,973

 
$
2,101,664



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 3, “Non Purchased Loans.” The Company recognized $147 in interest income on nonaccrual purchased loans during the first quarter of 2020.
The following table provides an aging of past due accruing and nonaccruing 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, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
2,284

 
$
2,984

 
$
269,348

 
$
274,616

 
$
820

 
$
1,551

 
$
3,585

 
$
5,956

 
$
280,572

Real estate – construction:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential
647

 
—

 
10,802

 
11,449

 
—

 
—

 
—

 
—

 
11,449

Commercial
—

 
—

 
31,380

 
31,380

 
—

 
—

 
—

 
—

 
31,380

Total real estate – construction
647

 
—

 
42,182

 
42,829

 
—

 
—

 
—

 
—

 
42,829

Real estate – 1-4 family mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary
5,507

 
312

 
297,809

 
303,628

 
1,191

 
3,764

 
966

 
5,921

 
309,549

Home equity
65

 
69

 
112,902

 
113,036

 
200

 
478

 
749

 
1,427

 
114,463

Rental/investment
102

 
30

 
43,214

 
43,346

 
54

 
732

 
90

 
876

 
44,222

Land development
53

 
—

 
21,055

 
21,108

 
47

 
—

 
285

 
332

 
21,440

Total real estate – 1-4 family mortgage
5,727

 
411

 
474,980

 
481,118

 
1,492

 
4,974

 
2,090

 
8,556

 
489,674

Real estate – commercial mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied
1,356

 
1,497

 
412,188

 
415,041

 
261

 
125

 
2,652

 
3,038

 
418,079

Non-owner occupied
519

 
50

 
608,960

 
609,529

 
11

 
697

 
146

 
854

 
610,383

Land development
604

 
72

 
36,980

 
37,656

 
—

 
164

 
254

 
418

 
38,074

Total real estate – commercial mortgage
2,479

 
1,619

 
1,058,128

 
1,062,226

 
272

 
986

 
3,052

 
4,310

 
1,066,536

Installment loans to individuals
3,291

 
90

 
83,713

 
87,094

 
11

 
73

 
184

 
268

 
87,362

Loans, net of unearned income
$
14,428

 
$
5,104

 
$
1,928,351

 
$
1,947,883

 
$
2,595

 
$
7,584

 
$
8,911

 
$
19,090

 
$
1,966,973


 
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, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
1,889

 
$
998

 
$
311,218

 
$
314,105

 
$
—

 
$
1,246

 
$
268

 
$
1,514

 
$
315,619

Real estate – construction
319

 
—

 
51,263

 
51,582

 
—

 
—

 
—

 
—

 
51,582

Real estate – 1-4 family mortgage
5,516

 
2,244

 
503,826

 
511,586

 
605

 
2,762

 
1,534

 
4,901

 
516,487

Real estate – commercial mortgage
3,454

 
922

 
1,110,570

 
1,114,946

 
—

 
123

 
320

 
443

 
1,115,389

Installment loans to individuals
3,709

 
153

 
98,545

 
102,407

 
1

 
51

 
128

 
180

 
102,587

Total
$
14,887

 
$
4,317

 
$
2,075,422

 
$
2,094,626

 
$
606

 
$
4,182

 
$
2,250

 
$
7,038

 
$
2,101,664




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 3, “Non Purchased Loans.”
The table below illustrates 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, 2020
 
 
 
 
 
Real estate – 1-4 family mortgage:
 
 
 
 
 
Primary
1

 
$
223

 
$
114

 
 
 
 
 
 

 
 
 
 
 
 


With respect to loans that were restructured during the three months ended March 31, 2020, none have subsequently defaulted as of the date of this report.

There were two restructured loans in the amount of $134 contractually 90 days past due or more and still accruing at March 31, 2020 and four restructured loans in the amount of $414 contractually 90 days past due or more and still accruing at March 31, 2019. The outstanding balance of restructured loans on nonaccrual status was $3,797 and $1,851 at March 31, 2020 and March 31, 2019, respectively.

Changes in the Company’s restructured loans are set forth in the table below:
 
 
Number of
Loans
 
Recorded
Investment
Totals at January 1, 2020
54

 
$
7,275

Additional advances or loans with concessions
1

 
209

Reductions due to:
 
 
 
Reclassified to nonperforming loans
(12
)
 
(2,449
)
Paid in full
(1
)
 
(34
)
Charge-offs
(1
)
 
(3
)
Principal paydowns
—

 
(19
)
Totals at March 31, 2020
41

 
$
4,979



The allocated allowance for credit losses on loans attributable to restructured loans was $56 and $86 at March 31, 2020 and March 31, 2019, respectively. The Company had $7 and $3 in remaining availability under commitments to lend additional funds on these restructured loans at March 31, 2020 and March 31, 2019, respectively.

As discussed in Note 3, “Non Purchased Loans,” the Company has implemented a loan deferral program in response to the COVID-19 pandemic. Through April 30, 2020, the Company has granted temporary modifications on approximately 600 purchased loans with total balances of approximately $415,000. Under the applicable guidance, none of these loans were considered “restructured loans”.
Credit Quality
A discussion of the Company’s policies regarding internal risk-rating of loans is discussed above in Note 3, “Non Purchased Loans.” The following table presents the Company’s loan portfolio by year of origination and internal risk-rating grades as of the dates presented:

 
Term Loans Amortized Cost Basis by Origination Year
 
 
 
 
2020
2019
2018
2017
2016
Prior
Revolving Loans
Revolving Loans Converted to Term
Total
Loans
March 31, 2020
 
 
 
 
 
 
 
 
 
Commercial, Financial, Agricultural
$
—

$
1,845

$
40,693

$
41,361

$
33,262

$
33,099

$
113,126

$
1,786

$
265,172

Pass
—

1,845

26,920

32,523

29,791

29,291

100,538

1,398

222,306

Pass-Watch
—

—

—

2,564

1,790

1,271

2,374

131

8,130

Substandard
—

—

13,773

6,274

1,681

2,537

10,214

257

34,736

 
 
 
 
 
 
 
 
 
 
Real Estate - Construction
$
—

$
—

$
10,283

$
14,029

$
9,949

$
6,581

$
259

$
—

$
41,101

Residential
$
—

$
—

$
3,857

$
4,923

$
682

$
—

$
259

$
—

$
9,721

Pass
—

—

3,857

4,923

682

—

259

—

9,721

Pass-Watch
—

—

—

—

—

—

—

—

—

Substandard
—

—

—

—

—

—

—

—

—

 
 
 
 
 
 
 
 
 
 
Commercial
$
—

$
—

$
6,426

$
9,106

$
9,267

$
6,581

$
—

$
—

$
31,380

Pass
—

—

6,426

9,106

9,267

6,581

—

—

31,380

Pass-Watch
—

—

—

—

—

—

—

—

—

Substandard
—

—

—

—

—

—

—

—

—

 
 
 
 
 
 
 
 
 
 
Real Estate - 1-4 Family Mortgage
$
—

$
—

$
16,663

$
10,884

$
3,841

$
53,263

$
3,875

$
253

$
88,779

Primary
$
—

$
—

$
7,936

$
7,192

$
1,175

$
21,681

$
—

$
—

$
37,984

Pass
—

—

6,674

7,192

1,156

15,891

—

—

30,913

Pass-Watch
—

—

—

—

—

767

—

—

767

Substandard
—

—

1,262

—

19

5,023

—

—

6,304

 
 
 
 
 
 
 
 
 


Home Equity
$
—

$
—

$
—

$
—

$
—

$
—

$
1,819

$
253

$
2,072

Pass
—

—

—

—

—

—

1,104

—

1,104

Pass-Watch
—

—

—

—

—

—

176

—

176

Substandard
—

—

—

—

—

—

539

253

792

 
 
 
 
 
 
 
 
 
 
Rental/Investment
$
—

$
—

$
—

$
1,229

$
873

$
28,203

$
107

$
—

$
30,412

Pass
—

—

—

1,229

873

25,343

107

—

27,552

Pass-Watch
—

—

—

—

—

330

—

—

330

Substandard
—

—

—

—

—

2,530

—

—

2,530

 
 
 
 
 
 
 
 
 
 
Land Development
$
—

$
—

$
8,727

$
2,463

$
1,793

$
3,379

$
1,949

$
—

$
18,311

Pass
—

—

8,389

2,436

1,793

2,230

1,949

—

16,797

Pass-Watch
—

—

338

—

—

—

—

—

338

Substandard
—

—

—

27

—

1,149

—

—

1,176

 
 
 
 
 
 
 
 
 
 
 
Term Loans Amortized Cost Basis by Origination Year
 
 
 
 
2020
2019
2018
2017
2016
Prior
Revolving Loans
Revolving Loans Converted to Term
Total
Loans
Real Estate - Commercial Mortgage
$
—

$
—

$
95,770

$
178,360

$
186,517

$
523,528

$
38,999

$
320

$
1,023,494

Owner-Occupied
$
—

$
—

$
25,640

$
47,266

$
66,524

$
239,440

$
14,541

$
320

$
393,731

Pass
—

—

24,627

43,304

45,607

204,909

14,422

—

332,869

Pass-Watch
—

—

1,013

1,661

18,309

13,669

—

—

34,652

Substandard
—

—

—

2,301

2,608

20,862

119

320

26,210

 
 
 
 
 
 
 
 
 
 
Non-Owner Occupied
$
—

$
—

$
62,334

$
125,736

$
116,669

$
268,725

$
23,685

$
—

$
597,149

Pass
—

—

42,381

92,855

77,092

225,668

18,869

—

456,865

Pass-Watch
—

—

19,942

32,881

39,577

31,429

4,816

—

128,645

Substandard
—

—

11

—

—

11,628

—

—

11,639

 
 
 
 
 
 
 
 
 
 
Land Development
$
—

$
—

$
7,796

$
5,358

$
3,324

$
15,363

$
773

$
—

$
32,614

Pass
—

—

6,922

5,303

3,097

8,422

656

—

24,400

Pass-Watch
—

—

874

55

86

5,494

117

—

6,626

Substandard
—

—

—

—

141

1,447

—

—

1,588

 
 
 
 
 
 
 
 
 
 
Total loans subject to risk rating
$
—

$
1,845

$
163,409

$
244,634

$
233,569

$
616,471

$
156,259

$
2,359

$
1,418,546

Pass
—

1,845

126,196

198,871

169,358

518,335

137,904

1,398

1,153,907

Pass-Watch
—

—

22,167

37,161

59,762

52,960

7,483

131

179,664

Substandard
—

—

15,046

8,602

4,449

45,176

10,872

830

84,975


The following table presents the performing status of the Company’s loan portfolio not subject to risk rating by origination date:
 
Term Loans Amortized Cost Basis by Origination Year
 
 
 
 
2020
2019
2018
2017
2016
Prior
Revolving Loans
Revolving Loans Converted to Term
Total
Loans
March 31, 2020
 
 
 
 
 
 
 
 
 
Commercial, Financial, Agricultural
$
—

$
—

$
10

$
397

$
406

$
2,950

$
11,502

$
135

$
15,400

Performing Loans
—

—

10

397

406

2,950

11,502

135

15,400

Non-Performing Loans
—

—

—

—

—

—

—

—

—

 
 
 
 
 
 
 
 
 


Real Estate - Construction
$
—

$
—

$
—

$
1,728

$
—

$
—

$
—

$
—

$
1,728

Residential
$
—

$
—

$
—

$
1,728

$
—

$
—

$
—

$
—

$
1,728

Performing Loans
—

—

—

1,728

—

—

—

—

1,728

Non-Performing Loans
—

—

—

—

—

—

—

—

—

 
 
 
 
 
 
 
 
 


Real Estate - 1-4 Family Mortgage
$
—

$
376

$
4,237

$
48,881

$
42,684

$
200,925

$
101,461

$
2,331

$
400,895

Primary
$
—

$
252

$
2,985

$
43,379

$
39,731

$
184,583

$
491

$
144

$
271,565

Performing Loans
—

252

2,874

42,613

39,641

179,700

491

144

265,715

Non-Performing Loans
—

—

111

766

90

4,883

—

—

5,850

 
 
 
 
 
 
 
 
 


Home Equity
$
—

$
—

$
748

$
5,105

$
2,295

$
1,086

$
100,970

$
2,187

$
112,391

Performing Loans
—

—

748

5,105

2,295

1,018

100,510

1,471

111,147

Non-Performing Loans
—

—

—

—

—

68

460

716

1,244

 
 
 
 
 
 
 
 
 


Rental/Investment
$
—

$
124

$
—

$
—

$
334

$
13,352

$
—

$
—

$
13,810

Performing Loans
—

124

—

—

334

13,191

—

—

13,649

Non-Performing Loans
—

—

—

—

—

161

—

—

161

 
 
 
 
 
 
 
 
 


Land Development
$
—

$
—

$
504

$
397

$
324

$
1,904

$
—

$
—

$
3,129

Performing Loans
—

—

504

397

77

1,904

—

—

2,882

Non-Performing Loans
—

—

—

—

247

—

—

—

247

 
 
 
 
 
 
 
 
 


 
Term Loans Amortized Cost Basis by Origination Year
 
 
 
 
2020
2019
2018
2017
2016
Prior
Revolving Loans
Revolving Loans Converted to Term
Total
Loans
Real Estate - Commercial Mortgage
$
—

$
344

$
662

$
926

$
908

$
37,698

$
2,504

$
—

$
43,042

Owner-Occupied
$
—

$
—

$
—

$
591

$
710

$
21,280

$
1,767

$
—

$
24,348

Performing Loans
—

—

—

591

710

21,129

1,767

—

24,197

Non-Performing Loans
—

—

—

—

—

151

—

—

151

 
 
 
 
 
 
 
 
 


Non-Owner Occupied
$
—

$
344

$
501

$
—

$
68

$
11,912

$
409

$
—

$
13,234

Performing Loans
—

344

501

—

68

11,766

409

—

13,088

Non-Performing Loans
—

—

—

—

—

146

—

—

146

 
 
 
 
 
 
 
 
 


Land Development
$
—

$
—

$
161

$
335

$
130

$
4,506

$
328

$
—

$
5,460

Performing Loans
—

—

161

335

130

4,434

328

—

5,388

Non-Performing Loans
—

—

—

—

—

72

—

—

72

 
 
 
 
 
 
 
 
 


Installment loans to individuals
$
—

$
—

$
54,787

$
20,881

$
1,688

$
5,357

$
4,605

$
44

$
87,362

Performing Loans
—

—

54,733

20,805

1,597

5,221

4,605

44

87,005

Non-Performing Loans
—

—

54

76

91

136

—

—

357

 
 
 
 
 
 
 
 
 
 
Total loans not subject to risk rating
$
—

$
720

$
59,696

$
72,813

$
45,686

$
246,930

$
120,072

$
2,510

$
548,427

Performing Loans
—

720

59,531

71,971

45,258

241,313

119,612

1,794

540,199

Non-Performing Loans
—

—

165

842

428

5,617

460

716

8,228


The following disclosures are presented under GAAP in effect prior to the adoption of CECL. The Company has included these disclosures to address the applicable prior periods.

A discussion of the Company’s policies regarding internal risk-rating of loans is discussed above in Note 3, “Non Purchased Loans,” and is applicable to these tables. The following table presents the Company’s loan portfolio by internal risk-rating grades as of the dates presented:

 
Pass
 
Watch
 
Substandard
 
Total
December 31, 2019
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
259,760

 
$
7,166

 
$
5,220

 
$
272,146

Real estate – construction
48,994

 
—

 
—

 
48,994

Real estate – 1-4 family mortgage
78,105

 
791

 
3,935

 
82,831

Real estate – commercial mortgage
909,513

 
56,334

 
15,835

 
981,682

Installment loans to individuals
—

 
—

 
—

 
—

Total
$
1,296,372

 
$
64,291

 
$
24,990

 
$
1,385,653



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, 2019
 
 
 
 
 
Commercial, financial, agricultural
$
13,935

 
$
—

 
$
13,935

Real estate – construction
1,725


—

 
1,725

Real estate – 1-4 family mortgage
394,476

 
3,638

 
398,114

Real estate – commercial mortgage
30,472

 
101

 
30,573

Installment loans to individuals
99,139

 
261

 
99,400

Total
$
539,747

 
$
4,000

 
$
543,747



The following disclosures are presented under GAAP in effect prior to the adoption of CECL that are no longer applicable or required. The Company has included these disclosures to address the applicable prior periods.
Impaired Loans
The Company’s former policies with respect to the determination of whether a loan is impaired and the treatment of such loans are described above in Note 3, “Non Purchased Loans.”
Loans formerly 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 date presented:
 
 
Unpaid
Contractual
Principal
Balance
 
Recorded
Investment
With
Allowance
 
Recorded
Investment
With No
Allowance
 
Total
Recorded
Investment
 
Related
Allowance
December 31, 2019
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
2,979

 
$
1,837

 
$
901

 
$
2,738

 
$
212

Real estate – construction
3,269

 
2,499

 
772

 
3,271

 
16

Real estate – 1-4 family mortgage
7,464

 
2,801

 
3,772

 
6,573

 
17

Real estate – commercial mortgage
1,148

 
981

 
128

 
1,109

 
6

Installment loans to individuals
202

 
110

 
71

 
181

 
2

Totals
$
15,062

 
$
8,228

 
$
5,644

 
$
13,872

 
$
253



The following table presents the average recorded investment and interest income recognized on loans formerly accounted for under ASC 310-20 and which are impaired loans for the period presented:
 
Three Months Ended
 
March 31, 2019
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Commercial, financial, agricultural
$
1,242

 
$
3

Real estate – construction
320

 
—

Real estate – 1-4 family mortgage
5,577

 
42

Real estate – commercial mortgage
2,630

 
12

Installment loans to individuals
397

 
—

Total
$
10,166

 
$
57


 
 
 
 

Loans formerly accounted for under ASC 310-30, and which are impaired loans recognized in conformity with ASC 310, segregated by class, were as follows as of the date presented:
 
 
Unpaid
Contractual
Principal
Balance
 
Recorded
Investment
With
Allowance
 
Recorded
Investment
With No
Allowance
 
Total
Recorded
Investment
 
Related
Allowance
December 31, 2019
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
49,162

 
$
3,695

 
$
25,843

 
$
29,538

 
$
292

Real estate – construction
882

 
—

 
863

 
863

 
—

Real estate – 1-4 family mortgage
42,969

 
10,061

 
25,482

 
35,543

 
291

Real estate – commercial mortgage
119,929

 
52,501

 
50,632

 
103,133

 
1,386

Installment loans to individuals
5,411

 
640

 
2,547

 
3,187

 
2

Totals
$
218,353

 
$
66,897

 
$
105,367

 
$
172,264

 
$
1,971



The following table presents the average recorded investment and interest income recognized on loans formerly accounted for under ASC 310-30 and which are impaired loans for the period presented:
 
Three Months Ended
 
March 31, 2019
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Commercial, financial, agricultural
$
27,403

 
$
427

Real estate – construction
—

 
—

Real estate – 1-4 family mortgage
44,177

 
572

Real estate – commercial mortgage
137,421

 
1,796

Installment loans to individuals
4,144

 
106

Total
$
213,145

 
$
2,901


 
 
 
 

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 date presented:
 
 
Total Purchased Credit Deteriorated Loans
December 31, 2019
 
Commercial, financial, agricultural
$
29,538

Real estate – construction
863

Real estate – 1-4 family mortgage
35,543

Real estate – commercial mortgage
103,133

Installment loans to individuals
3,187

Total
$
172,264