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Non Purchased Loans
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Non 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:
 
September 30,
2020		December 31, 2019
Commercial, financial, agricultural$2,445,294 $1,052,353 
Lease financing87,257 85,700 
Real estate – construction:
Residential261,432 272,643 
Commercial477,441 502,258 
Total real estate – construction738,873 774,901 
Real estate – 1-4 family mortgage:
Primary1,517,528 1,449,219 
Home equity442,380 456,265 
Rental/investment272,811 291,931 
Land development136,573 152,711 
Total real estate – 1-4 family mortgage2,369,292 2,350,126 
Real estate – commercial mortgage:
Owner-occupied1,316,408 1,209,204 
Non-owner occupied2,176,562 1,803,587 
Land development117,672 116,085 
Total real estate – commercial mortgage3,610,642 3,128,876 
Installment loans to individuals177,195 199,843 
Gross loans9,428,553 7,591,799 
Unearned income(4,329)(3,825)
Loans, net of unearned income$9,424,224 $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 $189 in interest income on nonaccrual loans during the first nine months of 2020.
The following table provides an aging of past due accruing and nonaccruing loans, segregated by class, as of the dates presented:
 Accruing LoansNonaccruing Loans 
 30-89 Days
Past Due		90 Days
or More
Past Due		Current
Loans		Total
Loans		30-89 Days
Past Due		90 Days
or More
Past Due		Current
Loans		Total
Loans		Total
Loans
September 30, 2020
Commercial, financial, agricultural$876 $288 $2,439,040 $2,440,204 $650 $2,666 $1,774 $5,090 $2,445,294 
Lease financing— — 87,257 87,257 — — — — 87,257 
Real estate – construction:
Residential988 — 260,444 261,432 — — — — 261,432 
Commercial— — 477,441 477,441 — — — — 477,441 
Total real estate – construction988 — 737,885 738,873 — — — — 738,873 
Real estate – 1-4 family mortgage:
Primary1,795 1,098 1,505,737 1,508,630 347 3,031 5,520 8,898 1,517,528 
Home equity1,001 16 440,820 441,837 — 92 451 543 442,380 
Rental/investment1,334 207 270,995 272,536 7 178 90 275 272,811 
Land development60 — 136,468 136,528 — 12 33 45 136,573 
Total real estate – 1-4 family mortgage4,190 1,321 2,354,020 2,359,531 354 3,313 6,094 9,761 2,369,292 
Real estate – commercial mortgage:
Owner-occupied1,034 1 1,312,024 1,313,059 178 2,895 276 3,349 1,316,408 
Non-owner occupied1,986 — 2,174,154 2,176,140 58 309 55 422 2,176,562 
Land development257 43 117,287 117,587 — 39 46 85 117,672 
Total real estate – commercial mortgage3,277 44 3,603,465 3,606,786 236 3,243 377 3,856 3,610,642 
Installment loans to individuals923 173 175,975 177,071 6 84 34 124 177,195 
Unearned income— — (4,329)(4,329)— — — — (4,329)
Loans, net of unearned income$10,254 $1,826 $9,393,313 $9,405,393 $1,246 $9,306 $8,279 $18,831 $9,424,224 
 
 Accruing LoansNonaccruing 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 – construction794 — 774,107 774,901 — — — — 774,901 
Real estate – 1-4 family mortgage18,020 2,502 2,320,328 2,340,850 623 6,571 2,082 9,276 2,350,126 
Real estate – commercial mortgage2,362 276 3,119,785 3,122,423 372 4,655 1,426 6,453 3,128,876 
Installment loans to individuals1,000 204 198,555 199,759 — 17 67 84 199,843 
Unearned income— — (3,825)(3,825)— — — — (3,825)
Total loans, net$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.
Number of
Loans		Pre-
Modification
Outstanding
Recorded
Investment		Post-
Modification
Outstanding
Recorded
Investment
Three months ended September 30, 2020
Commercial, financial, agricultural1 $31 $31 
Real estate – 1-4 family mortgage:
Primary2 201 200 
Rental/investment1 33 32 
Total real estate – 1-4 family mortgage3 234 232 
Real estate – commercial mortgage:
Owner-occupied2 357 357 
Non-owner occupied2 210 210 
Total real estate – commercial mortgage4 567 567 
Total8 $832 $830 
Three months ended September 30, 2019
Real estate – 1-4 family mortgage1 $16 $16 
Total1 $16 $16 
Number of
Loans		Pre-
Modification
Outstanding
Recorded
Investment		Post-
Modification
Outstanding
Recorded
Investment
Nine months ended September 30, 2020
Commercial, financial, agricultural7 $1,862 $1,859 
Real estate – 1-4 family mortgage:
Primary17 2,356 2,363 
Rental/investment2 142 142 
Total real estate – 1-4 family mortgage19 2,498 2,505 
Real estate – commercial mortgage:
Owner-occupied3 3,019 2,970 
Non-owner occupied2 210 210 
Land development1 189 189 
Total real estate – commercial mortgage6 3,418 3,369 
Installment loans to individuals2 24 21 
Total34 $7,802 $7,754 
Nine months ended September 30, 2019
Commercial, financial, agricultural2 $187 $185 
Real estate – 1-4 family mortgage4 321 320 
Total6 $508 $505 

With respect to loans that were restructured during the nine months ended September 30, 2020, $420 have subsequently defaulted as of the date of this report. With respect to loans that were restructured during the nine months ended September 30, 2019, $61 subsequently defaulted within twelve months of 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 was one restructured loan in the amount of $92 contractually 90 days past due or more and still accruing at September 30, 2020 and one restructured loan in the amount of $40 contractually 90 days past due or more and still accruing at September 30, 2019. The outstanding balance of restructured loans on nonaccrual status was $3,703 and $3,101 at September 30, 2020 and September 30, 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, 202046 $4,679 
Additional advances or loans with concessions34 7,787 
Reclassified as performing restructured loan3 354 
Reductions due to:
Reclassified as nonperforming(2)(510)
Paid in full(4)(938)
Principal paydowns— (200)
Totals at September 30, 202077 $11,172 

The allowance for credit losses attributable to restructured loans was $279 and $30 at September 30, 2020 and September 30, 2019, respectively. The Company had no remaining availability under commitments to lend additional funds on these restructured loans at September 30, 2020 and $1 at September 30, 2019.
In response to the current economic environment caused by the COVID-19 pandemic, the Company implemented a loan deferral program in the first quarter of 2020 to provide temporary payment relief to both consumer and commercial customers. Any customer current on loan payments, taxes and insurance can qualify for an initial 90-day deferral of principal and interest payments. A second 90-day deferral has been made available to borrowers that remained current on taxes and insurance through the first deferral period and also satisfy underwriting standards established by the Company that analyze the ability of the borrower to service its loan in accordance with its existing terms in light of the impact of the COVID-19 pandemic on the borrower, its industry and the markets in which it operates. 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. As of September 30, 2020, the Company had 804 loans with total balances of approximately $373,000 on deferral. 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 and 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 rated loans having 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 to “Pass-Watch” certain “Pass” rated loans greater than $1,000 in industries the Company believed posed a greater risk in the current pandemic environment (at the time of the downgrade, borrowers in the hotel/motel, restaurant and entertainment industries). Note 5, “Allowance for Credit Losses,” provides additional information about the Company's heightened monitoring efforts.
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
 20202019201820172016PriorRevolving LoansRevolving Loans Converted to TermTotal
Loans
September 30, 2020
Commercial, Financial, Agricultural$1,496,869 $208,462 $82,029 $55,271 $21,981 $25,284 $249,974 $12,539 $2,152,409 
Pass1,490,637 184,292 77,209 47,560 17,411 23,379 234,139 10,846 2,085,473 
Pass-Watch5,841 23,483 3,318 6,056 4,177 178 11,352 796 55,201 
Substandard391 687 1,502 1,655 393 1,727 4,483 897 11,735 
Real Estate - Construction$292,840 $277,380 $60,321 $27,528 $— $— $14,687 $145 $672,901 
Residential$144,193 $37,303 $2,805 $— $— $— $14,175 $145 $198,621 
Pass143,398 37,239 2,805 — — — 14,175 145 197,762 
Pass-Watch795 — — — — — — — 795 
Substandard— 64 — — — — — — 64 
Commercial$148,647 $240,077 $57,516 $27,528 $— $— $512 $— $474,280 
Pass143,920 222,291 57,516 27,528 — — 512 — 451,767 
Pass-Watch4,727 17,786 — — — — — — 22,513 
Substandard— — — — — — — — — 
Real Estate - 1-4 Family Mortgage$93,050 $90,316 $54,193 $35,024 $15,897 $11,028 $16,565 $2,411 $318,484 
Primary$7,847 $7,610 $7,659 $5,548 $427 $2,099 $416 $— $31,606 
Pass7,847 7,328 7,659 5,548 427 2,083 416 — 31,308 
Pass-Watch— 162 — — — — — — 162 
Substandard— 120 — — — 16 — — 136 
Home Equity$97 $565 $— $— $— $— $10,563 $— $11,225 
Pass97 565 — — — — 10,438 — 11,100 
 Term Loans Amortized Cost Basis by Origination Year
 20202019201820172016PriorRevolving LoansRevolving Loans Converted to TermTotal
Loans
Pass-Watch— — — — — — 125 — 125 
Substandard— — — — — — — — — 
Rental/Investment$37,906 $38,376 $32,752 $29,097 $15,247 $8,516 $1,260 $570 $163,724 
Pass35,900 36,978 31,584 27,640 15,142 7,714 1,169 570 156,697 
Pass-Watch1,816 456 434 1,390 — 603 91 — 4,790 
Substandard190 942 734 67 105 199 — — 2,237 
Land Development$47,200 $43,765 $13,782 $379 $223 $413 $4,326 $1,841 $111,929 
Pass47,200 43,125 13,782 379 217 375 4,322 1,841 111,241 
Pass-Watch— — — — — 38 4 — 42 
Substandard— 640 — — 6 — — — 646 
Real Estate - Commercial Mortgage$674,040 $853,569 $495,652 $448,059 $387,416 $329,400 $79,338 $18,350 $3,285,824 
Owner-Occupied$187,846 $272,468 $208,303 $186,479 $125,496 $101,549 $23,588 $5,804 $1,111,533 
Pass174,500 261,499 175,671 159,656 99,871 86,635 18,854 5,804 982,490 
Pass-Watch13,311 10,202 27,468 22,250 22,470 13,178 3,126 — 112,005 
Substandard35 767 5,164 4,573 3,155 1,736 1,608 — 17,038 
Non-Owner Occupied$462,691 $555,163 $273,430 $256,342 $256,794 $223,031 $52,887 $12,546 $2,092,884 
Pass428,272 502,778 235,155 171,441 190,683 164,334 46,252 12,427 1,751,342 
Pass-Watch32,584 50,069 38,275 83,315 52,461 57,785 6,635 119 321,243 
Substandard1,835 2,316 — 1,586 13,650 912 — — 20,299 
Land Development$23,503 $25,938 $13,919 $5,238 $5,126 $4,820 $2,863 $— $81,407 
Pass21,084 25,070 12,617 5,165 3,539 4,820 2,863 — 75,158 
Pass-Watch263 868 1,302 73 — — — — 2,506 
Substandard2,156 — — — 1,587 — — — 3,743 
Installment loans to individuals$25 $5 $— $— $— $— $— $20 $50 
Pass25 5 — — — — — 20 50 
Pass-Watch— — — — — — — — — 
Substandard— — — — — — — — — 
Total loans subject to risk rating$2,556,824 $1,429,732 $692,195 $565,882 $425,294 $365,712 $360,564 $33,465 $6,429,668 
Pass2,492,880 1,321,170 613,998 444,917 327,290 289,340 333,140 31,653 5,854,388 
Pass-Watch59,337 103,026 70,797 113,084 79,108 71,782 21,333 915 519,382 
Substandard4,607 5,536 7,400 7,881 18,896 4,590 6,091 897 55,898 

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
 20202019201820172016PriorRevolving LoansRevolving Loans Converted to TermTotal
Loans
September 30, 2020
Commercial, Financial, Agricultural$26,726 $19,164 $12,105 $7,487 $3,440 $12,258 $211,383 $322 $292,885 
Performing Loans26,726 19,052 12,049 7,107 3,291 12,235 210,916 322 291,698 
Non-Performing Loans— 112 56 380 149 23 467 — 1,187 
Lease Financing Receivables$27,278 $27,274 $18,993 $5,056 $1,836 $2,491 $— $— $82,928 
Performing Loans27,278 27,274 18,993 5,056 1,836 2,491 — — 82,928 
Non-Performing Loans— — — — — — — — — 
Real Estate - Construction$37,614 $27,562 $295 $155 $— $— $346 $— $65,972 
Residential$36,288 $25,727 $295 $155 $— $— $346 $— $62,811 
Performing Loans36,288 25,727 295 155 — — 346 — 62,811 
Non-Performing Loans— — — — — — — — — 
Commercial$1,326 $1,835 $— $— $— $— $— $— $3,161 
Performing Loans1,326 1,835 — — — — — — 3,161 
Non-Performing Loans— — — — — — — — — 
Real Estate - 1-4 Family Mortgage$378,741 $381,768 $298,572 $223,228 $116,088 $218,792 $430,273 $3,346 $2,050,808 
Primary$342,912 $353,445 $274,097 $200,836 $101,959 $211,184 $1,443 $46 $1,485,922 
Performing Loans342,912 351,059 271,076 199,061 101,238 209,090 1,443 46 1,475,925 
Non-Performing Loans— 2,386 3,021 1,775 721 2,094 — — 9,997 
Home Equity$— $205 $377 $179 $45 $965 $426,583 $2,801 $431,155 
Performing Loans— 205 377 179 45 848 426,434 2,507 430,595 
Non-Performing Loans— — — — — 117 149 294 560 
Rental/Investment$24,840 $22,936 $20,378 $19,980 $12,950 $6,007 $1,497 $499 $109,087 
Performing Loans24,840 22,830 20,378 19,859 12,943 5,759 1,497 499 108,605 
Non-Performing Loans— 106 — 121 7 248 — — 482 
Land Development$10,989 $5,182 $3,720 $2,233 $1,134 $636 $750 $— $24,644 
Performing Loans10,989 5,182 3,708 2,200 1,134 636 750 — 24,599 
Non-Performing Loans— — 12 33 — — — — 45 
Real Estate - Commercial Mortgage$62,694 $76,274 $61,617 $50,869 $39,150 $22,001 $11,674 $539 $324,818 
Owner-Occupied$36,389 $47,042 $39,417 $33,561 $26,849 $15,425 $5,876 $316 $204,875 
Performing Loans36,389 47,042 39,203 33,382 26,758 14,956 5,876 316 203,922 
Non-Performing Loans— — 214 179 91 469 — — 953 
Non-Owner Occupied$16,848 $19,873 $16,290 $14,117 $8,288 $5,011 $3,103 $148 $83,678 
Performing Loans16,848 19,873 16,232 14,117 8,288 4,956 3,103 148 83,565 
Non-Performing Loans— — 58 — — 55 — — 113 
Land Development$9,457 $9,359 $5,910 $3,191 $4,013 $1,565 $2,695 $75 $36,265 
Performing Loans9,457 9,359 5,910 3,181 4,013 1,522 2,695 75 36,212 
Non-Performing Loans— — — 10 — 43 — — 53 
Installment loans to individuals$59,631 $81,611 $15,836 $4,842 $2,856 $1,915 $10,363 $91 $177,145 
Performing Loans59,621 81,507 15,730 4,821 2,804 1,914 10,360 91 176,848 
Non-Performing Loans10 104 106 21 52 1 3 — 297 
Total loans not subject to risk rating$592,684 $613,653 $407,418 $291,637 $163,370 $257,457 $664,039 $4,298 $2,994,556 
Performing Loans592,674 610,945 403,951 289,118 162,350 254,407 663,420 4,004 2,980,869 
Non-Performing Loans10 2,708 3,467 2,519 1,020 3,050 619 294 13,687 
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 period.

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 date presented:

PassPass-WatchSubstandardTotal
December 31, 2019
Commercial, financial, agricultural$779,798 $11,949 $11,715 $803,462 
Real estate – construction698,950 501 9,209 708,660 
Real estate – 1-4 family mortgage339,079 3,856 3,572 346,507 
Real estate – commercial mortgage2,737,629 31,867 26,711 2,796,207 
Installment loans to individuals6 — — 6 
Total$4,555,462 $48,173 $51,207 $4,654,842 

The following table presents the performing status of the Company’s loan portfolio not subject to risk rating as of the date presented:
PerformingNon-
Performing		Total
December 31, 2019
Commercial, financial, agricultural$247,575 $1,316 $248,891 
Lease financing81,649 226 81,875 
Real estate – construction66,241 — 66,241 
Real estate – 1-4 family mortgage1,992,331 11,288 2,003,619 
Real estate – commercial mortgage330,714 1,955 332,669 
Installment loans to individuals199,549 288 199,837 
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 financing226 226 — 226 3 
Real estate – construction9,145 — 9,145 9,145 — 
Real estate – 1-4 family mortgage14,018 13,689 — 13,689 143 
Real estate – commercial mortgage11,067 7,361 1,080 8,441 390 
Installment loans to individuals91 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 periods presented:
Three Months EndedNine Months Ended
 September 30, 2019September 30, 2019
 Average
Recorded
Investment		Interest
Income
Recognized		Average
Recorded
Investment		Interest
Income
Recognized
Commercial, financial, agricultural$5,705 $5 $5,656 $23 
Lease financing— — — — 
Real estate – construction12,128 111 11,756 321 
Real estate – 1-4 family mortgage12,203 50 12,323 153 
Real estate – commercial mortgage10,692 41 10,652 122 
Installment loans to individuals130 — 130 1 
Total$40,858 $207 $40,517 $620 
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:
 
September 30,
2020		December 31, 2019
Commercial, financial, agricultural$202,768 $315,619 
Real estate – construction:
Residential3,093 16,407 
Commercial31,153 35,175 
Total real estate – construction34,246 51,582 
Real estate – 1-4 family mortgage:
Primary245,369 332,729 
Home equity95,235 117,275 
Rental/investment33,567 43,169 
Land development16,931 23,314 
Total real estate – 1-4 family mortgage391,102 516,487 
Real estate – commercial mortgage:
Owner-occupied355,994 428,077 
Non-owner occupied577,679 647,308 
Land development32,694 40,004 
Total real estate – commercial mortgage966,367 1,115,389 
Installment loans to individuals66,031 102,587 
Loans$1,660,514 $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 $214 in interest income on nonaccrual loans during the first nine months of 2020.
The following tables provide an aging of past due accruing and nonaccruing loans, segregated by class, as of the dates presented:
 Accruing LoansNonaccruing Loans 
 30-89 Days
Past Due		90 Days
or More
Past Due		Current
Loans		Total
Loans		30-89 Days
Past Due		90 Days
or More
Past Due		Current
Loans		Total
Loans		Total
Loans
September 30, 2020
Commercial, financial, agricultural$1,056 $36 $189,668 $190,760 $1,655 $6,233 $4,120 $12,008 $202,768 
Real estate – construction:
Residential— — 3,093 3,093 — — — — 3,093 
Commercial— — 31,153 31,153 — — — — 31,153 
Total real estate – construction— — 34,246 34,246 — — — — 34,246 
Real estate – 1-4 family mortgage:
Primary845 64 238,937 239,846 329 2,794 2,400 5,523 245,369 
Home equity839 114 93,006 93,959 — 629 647 1,276 95,235 
Rental/investment356 — 32,409 32,765 — 708 94 802 33,567 
Land development— — 16,581 16,581 — 29 321 350 16,931 
Total real estate – 1-4 family mortgage2,040 178 380,933 383,151 329 4,160 3,462 7,951 391,102 
Real estate – commercial mortgage:
Owner-occupied851 — 351,688 352,539 505 891 2,059 3,455 355,994 
Non-owner occupied438 54 576,462 576,954 144 571 10 725 577,679 
Land development161 — 32,142 32,303 — 164 227 391 32,694 
Total real estate – commercial mortgage1,450 54 960,292 961,796 649 1,626 2,296 4,571 966,367 
Installment loans to individuals1,844 50 63,846 65,740 9 123 159 291 66,031 
Loans, net of unearned income$6,390 $318 $1,628,985 $1,635,693 $2,642 $12,142 $10,037 $24,821 $1,660,514 

 Accruing LoansNonaccruing 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 – construction319 — 51,263 51,582 — — — — 51,582 
Real estate – 1-4 family mortgage5,516 2,244 503,826 511,586 605 2,762 1,534 4,901 516,487 
Real estate – commercial mortgage3,454 922 1,110,570 1,114,946 — 123 320 443 1,115,389 
Installment loans to individuals3,709 153 98,545 102,407 1 51 128 180 102,587 
Total Loans, net$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 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.
Number of
Loans		Pre-
Modification
Outstanding
Recorded
Investment		Post-
Modification
Outstanding
Recorded
Investment
Three months ended September 30, 2020
Real estate – 1-4 family mortgage:
Primary2 44 44 
Total real estate – 1-4 family mortgage2 44 44 
Real estate – commercial mortgage:
Owner-occupied4 3,104 2,844 
Total real estate – commercial mortgage4 3,104 2,844 
Total6 $3,148 $2,888 
Three months ended September 30, 2019
Commercial, financial, agricultural1 $258 $258 
Real estate – 1-4 family mortgage1 34 34 
Total2 $292 $292 
Number of
Loans		Pre-
Modification
Outstanding
Recorded
Investment		Post-
Modification
Outstanding
Recorded
Investment
Nine months ended September 30, 2020
Commercial, financial, agricultural1 $1,029 $1,031 
Real estate – 1-4 family mortgage:
Primary4 334 227 
Home equity1 159 162 
Total real estate – 1-4 family mortgage5 493 389 
Real estate – commercial mortgage:
Owner-occupied5 3,173 2,913 
Non-owner occupied1 542 544 
Total real estate – commercial mortgage6 3,715 3,457 
Installment loans to individuals1 25 19 
Total13 $5,262 $4,896 
Nine months ended September 30, 2019
Commercial, financial, agricultural2 $2,778 $2,778 
Real estate – 1-4 family mortgage1 34 34 
Real estate – commercial mortgage1 80 76 
Total4 $2,892 $2,888 

With respect to loans that were restructured during the nine months ended September 30, 2020 and September 30, 2019, none have subsequently defaulted and remain outstanding as of the date of this report.
There was one restructured loan in the amount of $40 contractually 90 days past due or more and still accruing at September 30, 2020 and two restructured loans in the aggregate amount of $272 contractually 90 days past due or more and still accruing at September 30, 2019. The outstanding balance of restructured loans on nonaccrual status was $7,775 and $707 at September 30, 2020 and September 30, 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, 202054 $7,275 
Additional advances or loans with concessions13 5,159 
Reclassified as performing restructured loan1 74 
Reductions due to:
Reclassified to nonperforming loans(13)(2,489)
Paid in full(2)(422)
Charge-offs(1)(3)
Principal paydowns— (444)
Totals at September 30, 202052 $9,150 

The allowance for credit losses attributable to restructured loans was $491 and $91 at September 30, 2020 and September 30, 2019, respectively. The Company had $539 and $5 in remaining availability under commitments to lend additional funds on these restructured loans at September 30, 2020 and September 30, 2019, respectively.

As discussed in Note 3, “Non Purchased Loans,” the Company implemented a loan deferral program in response to the COVID-19 pandemic. As of September 30, 2020, the Company had 465 loans with total balances of approximately $124,000 on deferral. 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
 20202019201820172016PriorRevolving LoansRevolving Loans Converted to TermTotal
Loans
September 30, 2020
Commercial, Financial, Agricultural$— $727 $36,120 $33,922 $29,041 $25,136 $65,214 $1,712 $191,872 
Pass— 727 23,006 25,516 22,081 20,778 55,670 628 148,406 
Pass-Watch— — 10 1,270 1,499 584 676 — 4,039 
Substandard— — 13,104 7,136 5,461 3,774 8,868 1,084 39,427 
Real Estate - Construction$— $— $10,887 $9,268 $14,091 $— $— $— $34,246 
Residential$— $— $2,203 $207 $683 $— $— $— $3,093 
Pass— — 2,203 207 683 — — — 3,093 
Pass-Watch— — — — — — — — — 
Substandard— — — — — — — — — 
Commercial$— $— $8,684 $9,061 $13,408 $— $— $— $31,153 
Pass— — 8,684 9,061 13,408 — — — 31,153 
Pass-Watch— — — — — — — — — 
Substandard— — — — — — — — — 
Real Estate - 1-4 Family Mortgage$— $— $14,029 $9,639 $2,012 $40,034 $2,653 $253 $68,620 
Primary$— $— $7,734 $5,163 $611 $17,809 $249 $— $31,566 
Pass— — 6,438 5,163 604 12,904 249 — 25,358 
Pass-Watch— — — — — 314 — — 314 
Substandard— — 1,296 — 7 4,591 — — 5,894 
Home Equity$— $— $— $— $— $— $943 $253 $1,196 
Pass— — — — — — 221 — 221 
Pass-Watch— — — — — — — — — 
Substandard— — — — — — 722 253 975 
Rental/Investment$— $— $— $1,904 $316 $19,013 $— $— $21,233 
Pass— — — 1,904 316 16,511 — — 18,731 
Pass-Watch— — — — — 201 — — 201 
Substandard— — — — — 2,301 — — 2,301 
Land Development$— $— $6,295 $2,572 $1,085 $3,212 $1,461 $— $14,625 
Pass— — 6,295 2,549 1,085 1,842 1,461 — 13,232 
Pass-Watch— — — — — — — — — 
Substandard— — — 23 — 1,370 — — 1,393 
 Term Loans Amortized Cost Basis by Origination Year
 20202019201820172016PriorRevolving LoansRevolving Loans Converted to TermTotal
Loans
Real Estate - Commercial Mortgage$— $— $77,627 $158,074 $180,313 $482,175 $21,918 $4,684 $924,791 
Owner-Occupied$— $— $14,819 $34,515 $63,851 $204,177 $15,144 $2 $332,508 
Pass— — 12,732 31,558 44,681 157,159 4,987 — 251,117 
Pass-Watch— — 2,087 1,615 11,202 24,427 — — 39,331 
Substandard— — — 1,342 7,968 22,591 10,157 2 42,060 
Non-Owner Occupied$— $— $56,269 $119,256 $113,496 $264,440 $6,596 $4,682 $564,739 
Pass— — 31,398 87,363 69,930 219,100 6,596 — 414,387 
Pass-Watch— — 8,504 24,215 30,691 33,749 — 4,682 101,841 
Substandard— — 16,367 7,678 12,875 11,591 — — 48,511 
Land Development$— $— $6,539 $4,303 $2,966 $13,558 $178 $— $27,544 
Pass— — 5,665 4,249 2,785 6,000 66 — 18,765 
Pass-Watch— — 874 54 44 6,141 112 — 7,225 
Substandard— — — — 137 1,417 — — 1,554 
Total loans subject to risk rating$— $727 $138,663 $210,903 $225,457 $547,346 $89,785 $6,649 $1,219,530 
Pass— 727 96,421 167,570 155,573 434,295 69,250 628 924,464 
Pass-Watch— — 11,475 27,154 43,436 65,416 788 4,682 152,951 
Substandard— — 30,767 16,179 26,448 47,635 19,747 1,339 142,115 

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
 20202019201820172016PriorRevolving LoansRevolving Loans Converted to TermTotal
Loans
September 30, 2020
Commercial, Financial, Agricultural$— $— $491 $355 $330 $2,846 $6,825 $49 $10,896 
Performing Loans— — 491 355 330 2,846 6,825 49 10,896 
Non-Performing Loans— — — — — — — — — 
Real Estate - Construction$— $— $— $— $— $— $— $— $— 
Residential$— $— $— $— $— $— $— $— $— 
Performing Loans— — — — — — — — — 
Non-Performing Loans— — — — — — — — — 
Real Estate - 1-4 Family Mortgage$— $375 $3,264 $43,061 $32,608 $156,497 $84,500 $2,177 $322,482 
Primary$— $250 $2,029 $38,366 $30,249 $142,336 $461 $112 $213,803 
Performing Loans— 250 1,918 37,605 30,227 137,837 461 26 208,324 
Non-Performing Loans— — 111 761 22 4,499 — 86 5,479 
Home Equity$— $— $744 $4,472 $1,799 $1,040 $83,919 $2,065 $94,039 
Performing Loans— — 744 4,472 1,799 973 83,274 1,640 92,902 
Non-Performing Loans— — — — — 67 645 425 1,137 
Rental/Investment$— $125 $— $150 $203 $11,736 $120 $— $12,334 
Performing Loans— 125 — 150 203 11,632 120 — 12,230 
Non-Performing Loans— — — — — 104 — — 104 
Land Development$— $— $491 $73 $357 $1,385 $— $— $2,306 
Performing Loans— — 491 30 118 1,385 — — 2,024 
 Term Loans Amortized Cost Basis by Origination Year
 20202019201820172016PriorRevolving LoansRevolving Loans Converted to TermTotal
Loans
Non-Performing Loans— — — 43 239 — — — 282 
Real Estate - Commercial Mortgage$— $339 $620 $1,339 $998 $36,416 $1,864 $— $41,576 
Owner-Occupied$— $— $— $955 $670 $20,457 $1,404 $— $23,486 
Performing Loans— — — 955 670 20,175 1,404 — 23,204 
Non-Performing Loans— — — — — 282 — — 282 
Non-Owner Occupied$— $339 $463 $50 $67 $11,854 $167 $— $12,940 
Performing Loans— 339 463 50 67 11,656 167 — 12,742 
Non-Performing Loans— — — — — 198 — — 198 
Land Development$— $— $157 $334 $261 $4,105 $293 $— $5,150 
Performing Loans— — 157 334 261 4,044 293 — 5,089 
Non-Performing Loans— — — — — 61 — — 61 
Installment loans to individuals$— $— $39,966 $17,061 $1,265 $4,497 $3,206 $35 $66,030 
Performing Loans— — 39,901 16,985 1,187 4,375 3,206 35 65,689 
Non-Performing Loans— — 65 76 78 122 — — 341 
Total loans not subject to risk rating$— $714 $44,341 $61,816 $35,201 $200,256 $96,395 $2,261 $440,984 
Performing Loans— 714 44,165 60,936 34,862 194,923 95,750 1,750 433,100 
Non-Performing Loans— — 176 880 339 5,333 645 511 7,884 

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 period.

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 date presented:

PassPass-WatchSubstandardTotal
December 31, 2019
Commercial, financial, agricultural$259,760 $7,166 $5,220 $272,146 
Real estate – construction48,994 — — 48,994 
Real estate – 1-4 family mortgage78,105 791 3,935 82,831 
Real estate – commercial mortgage909,513 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 date presented:
 
PerformingNon-
Performing		Total
December 31, 2019
Commercial, financial, agricultural$13,935 $— $13,935 
Real estate – construction1,725 — 1,725 
Real estate – 1-4 family mortgage394,476 3,638 398,114 
Real estate – commercial mortgage30,472 101 30,573 
Installment loans to individuals99,139 261 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 – construction3,269 2,499 772 3,271 16 
Real estate – 1-4 family mortgage7,464 2,801 3,772 6,573 17 
Real estate – commercial mortgage1,148 981 128 1,109 6 
Installment loans to individuals202 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 periods presented:
Three Months EndedNine Months Ended
 September 30, 2019September 30, 2019
 Average
Recorded
Investment		Interest
Income
Recognized		Average
Recorded
Investment		Interest
Income
Recognized
Commercial, financial, agricultural$2,533 $2 $2,312 $6 
Real estate – construction256 — 256 3 
Real estate – 1-4 family mortgage5,364 30 5,468 96 
Real estate – commercial mortgage1,150 11 1,185 36 
Installment loans to individuals333 — 340 — 
Total$9,636 $43 $9,561 $141 

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 – construction882 — 863 863 — 
Real estate – 1-4 family mortgage42,969 10,061 25,482 35,543 291 
Real estate – commercial mortgage119,929 52,501 50,632 103,133 1,386 
Installment loans to individuals5,411 640 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 EndedNine Months Ended
 September 30, 2019September 30, 2019
 Average
Recorded
Investment		Interest
Income
Recognized		Average
Recorded
Investment		Interest
Income
Recognized
Commercial, financial, agricultural$32,150 $283 $35,304 $1,145 
Real estate – construction558 8 560 8 
Real estate – 1-4 family mortgage38,031 538 38,682 1,699 
Real estate – commercial mortgage117,179 1,541 119,327 5,015 
Installment loans to individuals3,192 86 3,576 287 
Total$191,110 $2,456 $197,449 $8,154 

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 – construction863 
Real estate – 1-4 family mortgage35,543 
Real estate – commercial mortgage103,133 
Installment loans to individuals3,187 
Total$172,264