The following is a summary of acquired non-credit impaired loans accounted for under FASB ASC Topic 310-20, net of related discount:

The unamortized discount related to the acquired non-credit impaired loans totaled $26.9 million, $33.4 million, and $43.6 million at June 30, 2019, December 31, 2018, and June 30, 2018, respectively.

In accordance with FASB ASC Topic 310-30, we aggregated acquired loans that have common risk characteristics into pools of loan categories as described in the table below. The following is a summary of acquired credit impaired loans accounted for under FASB ASC Topic 310-30 (identified as credit impaired at the time of acquisition), net of related discount:

Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting carrying values of acquired credit impaired loans as of June 30, 2019, December 31, 2018 and June 30, 2018 are as follows:

Income on acquired credit impaired loans that are not impaired at the acquisition date is recognized in the same manner as loans impaired at the acquisition date. A portion of the fair value discount on acquired non-impaired loans has been ascribed as an accretable yield that is accreted into interest income over the estimated remaining life of the loans. The remaining nonaccretable difference represents cash flows not expected to be collected.

The following are changes in the carrying value of acquired credit impaired loans:

The table below reflects refined accretable yield balance for acquired credit impaired loans:

The table above reflects the changes in the carrying amount of accretable yield for the acquired credit impaired loans and shows both the contractual interest income and incremental accretion for the six months ended June 30, 2019 and 2018. In the first six months of 2019, the accretable yield balance declined by $16.1 million as total contractual interest and accretion income of $24.5 million was recognized. This was partially offset by improved expected cash flows of $8.5 million. The improved cash flows for the prior year was adjusted to accurately reflect the split between income types.

As of June 30, 2019, the table above excludes $2.2 billion ($2.2 billion in contractual principal less a $26.9 million discount) in acquired loans which are accounted for under FASB ASC Topic 310-20. These loans were identified as either performing with no discount related to the credit or as a revolving lines of credit (commercial or consumer) at acquisition. As of June 30, 2018, the balance of these acquired loans totaled $3.1 billion ($3.1 billion in contractual principal less a $43.6 million remaining discount).

Our loan loss policy adheres to GAAP as well as interagency guidance. The allowance for loan losses, which we sometimes refer to herein as ALLL, is based upon estimates made by management. We maintain an allowance for loan losses at a level that we believe is appropriate to cover estimated credit losses on individually evaluated loans that are determined to be impaired as well as estimated credit losses inherent in the remainder of our loan portfolio. Arriving at the allowance involves a high degree of management judgment and results in a range of estimated losses. We regularly evaluate the adequacy of the allowance through our internal risk rating system, outside credit review, and regulatory agency examinations to assess the quality of the loan portfolio and identify problem loans. The evaluation process also includes our analysis of current economic conditions, composition of the loan portfolio, past due and nonaccrual loans, concentrations of credit, lending policies and procedures, and historical loan loss experience. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on, among other factors, changes in economic conditions in our markets. In addition, regulatory agencies, as an integral part of their examination process, periodically review our allowances for losses on loans. These agencies may require management to recognize additions to the allowances based on their judgments about information available to them at the time of their examination. Because of these and other factors, it is possible that the allowances for losses on loans may change. The provision for loan losses is charged to expense in an amount necessary to maintain the allowance at an appropriate level.

The allowance for loan losses on non-acquired loans consists of general and specific reserves. The general reserves are determined by applying loss percentages to the portfolio that are based on historical loss experience for each class of loans and management’s evaluation and “risk grading” of the loan portfolio. Additionally, the general economic and business conditions affecting key lending areas, credit quality trends, collateral values, loan volumes and concentrations, seasoning of the loan portfolio, the findings of internal and external credit reviews and results from external bank regulatory examinations are included in this evaluation. Currently, these adjustments are applied to the non-acquired loan portfolio when estimating the level of reserve required. The specific reserves are determined on a loan-by-loan basis based on management’s evaluation of our exposure for each credit, given the current payment status of the loan and the value of any underlying collateral. These are loans classified by management as doubtful or substandard. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. Generally, the need for specific reserve is evaluated on impaired loans, and once a specific reserve is established for a loan, a charge off of that amount occurs in the quarter subsequent to the establishment of the specific reserve. Loans that are determined to be impaired are provided a specific reserve, if necessary, and are excluded from the calculation of the general reserves.

Beginning with the First Financial Holdings, Inc. acquisition, we segregated the loan portfolio into performing loans (“non-credit impaired) and purchased credit impaired loans. The performing loans and revolving type loans are accounted for under FASB ASC 310-20, with each loan being accounted for individually. The allowance for loan losses on these loans will be measured and recorded consistent with non-acquired loans. The acquired credit impaired loans will follow the description in the next paragraph.

In determining the acquisition date fair value of purchased loans, and in subsequent accounting, we generally aggregate purchased loans into pools of loans with common risk characteristics. Expected cash flows at the acquisition date in excess of the fair value of loans are recorded as interest income over the life of the loans using a level yield method if the timing and amount of the future cash flows of the pool is reasonably estimable. Subsequent to the acquisition date, increases in cash flows over those expected at the acquisition date are reclassified from the

non-accretable difference to accretable yield and recognized as interest income prospectively. Decreases in expected cash flows after the acquisition date are recognized by recording an allowance for loan losses. Management analyzes the acquired loan pools using various assessments of risk to determine an expected loss. The expected loss is derived based upon a loss given default based upon the collateral type and/or detailed review by loan officers and the probability of default that is determined based upon historical data at the loan level. All acquired loans managed by Special Asset Management are reviewed quarterly and assigned a loss given default. Acquired loans not managed by Special Asset Management are reviewed twice a year in a similar method to our originated portfolio of loans which follow review thresholds based on risk rating categories. In the fourth quarter of 2015, we modified its methodology to a more granular approach in determining loss given default on substandard loans with a net book balance between $100,000 and $500,000 by adjusting the loss given default to 90% of the most current collateral valuation based on appraised value. Substandard loans greater than $500,000 were individually assigned loss given defaults each quarter. Trends are reviewed in terms of accrual status, past due status, and weighted-average grade of the loans within each of the accounting pools. In addition, the relationship between the change in the unpaid principal balance and change in the mark is assessed to correlate the directional consistency of the expected loss for each pool.

An aggregated analysis of the changes in allowance for loan losses is as follows:

(1)	– Recoveries related to acquired credit impaired loans are recorded through other noninterest income on the consolidated statement of income and do not run through the ALLL.

The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for non-acquired loans:


	Construction		Commercial		Commercial		Consumer						Other Income
	& Land		Non-owner		Owner		Owner		Home		Commercial		Producing				Other
(Dollars in thousands)	Development		Occupied		Occupied		Occupied		Equity		& Industrial		Property		Consumer		Loans		Total
Three Months Ended June 30, 2019
Allowance for loan losses:
Balance, March 31, 2019	$	5,371	$	9,740	$	9,629	$	12,058	$	3,273	$	7,249	$	1,387	$	3,195	$	106	$	52,008
Charge-offs		(9)		(3)		—		(48)		—		(90)		(31)		(1,146)		—		(1,327)
Recoveries		326		23		41		30		98		138		13		206		—		875
Provision (benefit)		30		551		(144)		392		(194)		198		(10)		1,317		(106)		2,034
Balance, June 30, 2019	$	5,718	$	10,311	$	9,526	$	12,432	$	3,177	$	7,495	$	1,359	$	3,572	$	—	$	53,590
Loans individually evaluated for impairment	$	715	$	1	$	33	$	35	$	125	$	394	$	78	$	3	$	—	$	1,384
Loans collectively evaluated for impairment	$	5,003	$	10,310	$	9,493	$	12,397	$	3,052	$	7,101	$	1,281	$	3,569	$	—	$	52,206
Loans:
Loans individually evaluated for impairment	$	36,130	$	101	$	5,440	$	5,566	$	2,436	$	2,674	$	2,064	$	98	$	—	$	54,509
Loans collectively evaluated for impairment		843,594		1,723,539		1,584,547		2,074,383		511,806		1,111,839		212,139		503,370		1,601		8,566,818
Total non-acquired loans	$	879,724	$	1,723,640	$	1,589,987	$	2,079,949	$	514,242	$	1,114,513	$	214,203	$	503,468	$	1,601	$	8,621,327
Three Months Ended June 30, 2018
Allowance for loan losses:
Balance, March 31, 2018	$	5,847	$	6,798	$	8,346	$	10,193	$	3,237	$	6,333	$	1,393	$	2,899	$	157	$	45,203
Charge-offs		—		—		(81)		—		(5)		(59)		—		(1,095)		—		(1,240)
Recoveries		547		2		25		41		27		199		3		207		—		1,051
Provision (benefit)		(207)		409		317		711		109		238		17		1,060		206		2,860
Balance, June 30, 2018	$	6,187	$	7,209	$	8,607	$	10,945	$	3,368	$	6,711	$	1,413	$	3,071	$	363	$	47,874
Loans individually evaluated for impairment	$	846	$	93	$	44	$	30	$	180	$	485	$	144	$	7	$	—	$	1,829
Loans collectively evaluated for impairment	$	5,341	$	7,116	$	8,563	$	10,915	$	3,188	$	6,226	$	1,269	$	3,064	$	363	$	46,045
Loans:
Loans individually evaluated for impairment	$	42,392	$	1,348	$	4,750	$	5,628	$	3,144	$	1,834	$	3,240	$	257	$	—	$	62,593
Loans collectively evaluated for impairment		864,498		1,133,887		1,367,703		1,728,296		453,802		939,233		202,267		416,393		28,867		7,134,946
Total non-acquired loans	$	906,890	$	1,135,235	$	1,372,453	$	1,733,924	$	456,946	$	941,067	$	205,507	$	416,650	$	28,867	$	7,197,539


	Construction		Commercial		Commercial		Consumer						Other Income
	& Land		Non-owner		Owner		Owner		Home		Commercial		Producing				Other
(Dollars in thousands)	Development		Occupied		Occupied		Occupied		Equity		& Industrial		Property		Consumer		Loans		Total
Six Months Ended June 30, 2019
Allowance for loan losses:
Balance, December 31, 2018	$	5,682	$	8,754	$	9,369	$	11,913	$	3,434	$	7,454	$	1,446	$	3,101	$	41	$	51,194
Charge-offs		(9)		(3)		(12)		(85)		(15)		(109)		(31)		(2,308)		—		(2,572)
Recoveries		625		45		66		32		134		209		58		458		—		1,627
Provision (benefit)		(580)		1,515		103		572		(376)		(59)		(114)		2,321		(41)		3,341
Balance, June 30, 2019	$	5,718	$	10,311	$	9,526	$	12,432	$	3,177	$	7,495	$	1,359	$	3,572	$	—	$	53,590
Six Months Ended June 30, 2018
Allowance for loan losses:
Balance, December 31, 2017	$	5,921	$	6,525	$	8,128	$	9,668	$	3,250	$	5,488	$	1,375	$	2,788	$	305	$	43,448
Charge-offs		(35)		—		(81)		(4)		(71)		(144)		—		(2,074)		—		(2,409)
Recoveries		989		4		33		64		128		214		11		410		—		1,853
Provision (benefit)		(688)		680		527		1,217		61		1,153		27		1,947		58		4,982
Balance, June 30, 2018	$	6,187	$	7,209	$	8,607	$	10,945	$	3,368	$	6,711	$	1,413	$	3,071	$	363	$	47,874

The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for acquired non-credit impaired loans:


	Construction		Commercial		Commercial		Consumer						Other Income
	& Land		Non-owner		Owner		Owner		Home		Commercial		Producing
(Dollars in thousands)	Development		Occupied		Occupied		Occupied		Equity		& Industrial		Property		Consumer		Total
Three Months Ended June 30, 2019
Allowance for loan losses:
Balance at beginning of period	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Charge-offs		—		—		(786)		(6)		(168)		(506)		—		(69)		(1,535)
Recoveries		1		—		—		3		24		6		71		11		116
Provision (benefit)		(1)		—		786		3		144		500		(71)		58		1,419
Balance, June 30, 2019	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Loans collectively evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Loans:
Loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Loans collectively evaluated for impairment		60,391		595,367		376,187		577,284		208,777		151,579		111,006		99,690		2,180,281
Total acquired non-credit impaired loans	$	60,391	$	595,367	$	376,187	$	577,284	$	208,777	$	151,579	$	111,006	$	99,690	$	2,180,281

Three Months Ended June 30, 2018
Allowance for loan losses:
Balance at beginning of period	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Charge-offs		(106)		—		(28)		—		(158)		(764)		—		(127)		(1,183)
Recoveries		6		—		—		5		28		2		—		46		87
Provision (benefit)		100		—		28		(5)		130		762		—		81		1,096
Balance, June 30, 2018	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Loans collectively evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Loans:
Loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Loans collectively evaluated for impairment		281,282		752,465		486,254		676,596		278,906		304,864		169,392		126,665		3,076,424
Total acquired non-credit impaired loans	$	281,282	$	752,465	$	486,254	$	676,596	$	278,906	$	304,864	$	169,392	$	126,665	$	3,076,424


	Construction		Commercial		Commercial		Consumer						Other Income
	& Land		Non-owner		Owner		Owner		Home		Commercial		Producing
(Dollars in thousands)	Development		Occupied		Occupied		Occupied		Equity		& Industrial		Property		Consumer		Total
Six Months Ended June 30, 2019
Allowance for loan losses:
Balance, December 31, 2018	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Charge-offs		(6)		—		(786)		(6)		(240)		(640)		(26)		(205)		(1,909)
Recoveries		2		—		—		5		46		171		71		27		322
Provision (benefit)		4		—		786		1		194		469		(45)		178		1,587
Balance, June 30, 2019	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Six Months Ended June 30, 2018
Allowance for loan losses:
Balance, December 31, 2017	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Charge-offs		(107)		—		(28)		(70)		(240)		(807)		—		(265)		(1,517)
Recoveries		7		—		—		62		79		55		—		49		252
Provision (benefit)		100		—		28		8		161		752		—		216		1,265
Balance, June 30, 2018	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for acquired credit impaired loans:


			Commercial
			Real Estate-
	Commercial		Construction and		Residential				Commercial
(Dollars in thousands)	Real Estate		Development		Real Estate		Consumer		and Industrial		Total
Three Months Ended June 30, 2019
Allowance for loan losses:
Balance, March 31, 2019	$	847	$	717	$	2,164	$	707	$	79	$	4,514
Provision (benefit) for loan losses		162		81		279		(237)		(34)		251
Reduction due to loan removals		—		—		(97)		—		(45)		(142)
Balance, June 30, 2019	$	1,009	$	798	$	2,346	$	470	$	—	$	4,623
Loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Loans collectively evaluated for impairment	$	1,009	$	798	$	2,346	$	470	$	—	$	4,623
Loans:*
Loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Loans collectively evaluated for impairment		164,540		27,014		184,208		38,624		10,198		424,584
Total acquired credit impaired loans	$	164,540	$	27,014	$	184,208	$	38,624	$	10,198	$	424,584

Three Months Ended June 30, 2018
Allowance for loan losses:
Balance , March 31, 2018	$	261	$	215	$	2,509	$	594	$	505	$	4,084
Provision (benefit) for loan losses		375		390		137		(19)		(361)		522
Reduction due to loan removals		—		(29)		(132)		(3)		(16)		(180)
Balance, June 30, 2018	$	636	$	576	$	2,514	$	572	$	128	$	4,426
Loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Loans collectively evaluated for impairment	$	636	$	576	$	2,514	$	572	$	128	$	4,426
Loans:*
Loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Loans collectively evaluated for impairment		227,739		40,951		229,502		45,633		12,580		556,405
Total acquired credit impaired loans	$	227,739	$	40,951	$	229,502	$	45,633	$	12,580	$	556,405


			Commercial
			Real Estate-
	Commercial		Construction and		Residential				Commercial
(Dollars in thousands)	Real Estate		Development		Real Estate		Consumer		and Industrial		Total
Six Months Ended June 30, 2019
Allowance for loan losses:
Balance, December 31, 2018	$	801	$	717	$	2,246	$	761	$	79	$	4,604
Provision (benefit) for loan losses		213		81		295		(291)		(34)		264
Reduction due to loan removals		(5)		—		(195)		—		(45)		(245)
Balance, June 30, 2019	$	1,009	$	798	$	2,346	$	470	$	—	$	4,623
Six Months Ended June 30, 2018
Allowance for loan losses:
Balance, December 31, 2017	$	288	$	180	$	3,553	$	461	$	145	$	4,627
Provision (benefit) for loan losses		361		478		(807)		114		539		685
Reduction due to loan removals		(13)		(82)		(232)		(3)		(556)		(886)
Balance, June 30, 2018	$	636	$	576	$	2,514	$	572	$	128	$	4,426

*— The carrying value of acquired credit impaired loans includes a non-accretable difference which is primarily associated with the assessment of credit quality of acquired loans.

As part of the ongoing monitoring of the credit quality of our loan portfolio, management tracks certain credit quality indicators, including trends related to (i) the level of classified loans, (ii) net charge-offs, (iii) non-performing loans (see details below), and (iv) the general economic conditions of the markets that we serve.

We utilize a risk grading matrix to assign a risk grade to each of its loans. A description of the general characteristics of the risk grades is as follows:

●

Pass—These loans range from minimal credit risk to average, however, still acceptable credit risk.

●

Special mention—A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution’s credit position at some future date.

●

Substandard—A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that may jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

●

Doubtful—A doubtful loan has all of the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable.

The following table presents the credit risk profile by risk grade of commercial loans for non-acquired loans:


	Construction & Development						Commercial Non-owner Occupied						Commercial Owner Occupied
	June 30,		December 31,		June 30,		June 30,		December 31,		June 30,		June 30,		December 31,		June 30,
(Dollars in thousands)	2019		2018		2018		2019		2018		2018		2019		2018		2018
Pass	$	871,393	$	832,612	$	895,887	$	1,714,606	$	1,407,744	$	1,126,099	$	1,561,594	$	1,480,267	$	1,343,624
Special mention		5,948		6,015		7,858		7,557		6,427		7,378		16,310		24,576		18,808
Substandard		2,383		2,818		3,145		1,477		1,380		1,758		12,083		12,708		10,021
Doubtful		—		—		—		—		—		—		—		—		—
	$	879,724	$	841,445	$	906,890	$	1,723,640	$	1,415,551	$	1,135,235	$	1,589,987	$	1,517,551	$	1,372,453


	Commercial & Industrial						Other Income Producing Property						Commercial Total
	June 30,		December 31,		June 30,		June 30,		December 31,		June 30,		June 30,		December 31,		June 30,
	2019		2018		2018		2019		2018		2018		2019		2018		2018
Pass	$	1,090,519	$	1,037,915	$	923,995	$	208,598	$	208,186	$	198,899	$	5,446,710	$	4,966,724	$	4,488,504
Special mention		16,279		5,887		8,522		4,376		4,706		4,828		50,470		47,611		47,394
Substandard		7,715		11,150		8,550		1,229		1,461		1,780		24,887		29,517		25,254
Doubtful		—		—		—		—		—		—		—		—		—
	$	1,114,513	$	1,054,952	$	941,067	$	214,203	$	214,353	$	205,507	$	5,522,067	$	5,043,852	$	4,561,152

The following table presents the credit risk profile by risk grade of consumer loans for non-acquired loans:


	Consumer Owner Occupied						Home Equity						Consumer
	June 30,		December 31,		June 30,		June 30,		December 31,		June 30,		June 30,		December 31,		June 30,
(Dollars in thousands)	2019		2018		2018		2019		2018		2018		2019		2018		2018
Pass	$	2,052,808	$	1,909,427	$	1,706,574	$	502,305	$	481,607	$	443,953	$	501,474	$	446,823	$	415,053
Special mention		9,936		11,304		12,566		5,731		7,293		6,805		443		437		623
Substandard		17,205		15,534		14,784		6,206		6,248		6,188		1,551		1,404		974
Doubtful		—		—		—		—		—		—		—		—		—
	$	2,079,949	$	1,936,265	$	1,733,924	$	514,242	$	495,148	$	456,946	$	503,468	$	448,664	$	416,650


	Other						Consumer Total
	June 30, 2019		December 31, 2018		June 30, 2018		June 30, 2019		December 31, 2018		June 30, 2018
Pass	$	1,601	$	9,357	$	28,867	$	3,058,188	$	2,847,214	$	2,594,447
Special mention		—		—		—		16,110		19,034		19,994
Substandard		—		—		—		24,962		23,186		21,946
Doubtful		—		—		—		—		—		—
	$	1,601	$	9,357	$	28,867	$	3,099,260	$	2,889,434	$	2,636,387

The following table presents the credit risk profile by risk grade of total non-acquired loans:


	Total Non-acquired Loans
	June 30,		December 31,		June 30,
(Dollars in thousands)	2019		2018		2018
Pass	$	8,504,898	$	7,813,938	$	7,082,951
Special mention		66,580		66,645		67,388
Substandard		49,849		52,703		47,200
Doubtful		—		—		—
	$	8,621,327	$	7,933,286	$	7,197,539

The following table presents the credit risk profile by risk grade of commercial loans for acquired non-credit impaired loans:


							Commercial Non-owner
	Construction & Development						Occupied						Commercial Owner Occupied
	June 30,		December 31,		June 30,		June 30,		December 31,		June 30,		June 30,		December 31,		June 30,
(Dollars in thousands)	2019		2018		2018		2019		2018		2018		2019		2018		2018
Pass	$	58,165	$	163,777	$	279,239	$	583,416	$	665,913	$	738,293	$	359,783	$	411,783	$	479,399
Special mention		821		838		1,449		5,753		13,018		14,164		12,841		5,664		5,871
Substandard		1,405		455		594		6,198		322		8		3,563		4,394		984
Doubtful		—		—		—		—		—		—		—		—		—
	$	60,391	$	165,070	$	281,282	$	595,367	$	679,253	$	752,465	$	376,187	$	421,841	$	486,254


							Other Income Producing
	Commercial & Industrial						Property						Commercial Total
	June 30,		December 31,		June 30,		June 30,		December 31,		June 30,		June 30,		December 31,		June 30,
	2019		2018		2018		2019		2018		2018		2019		2018		2018
Pass	$	145,733	$	202,399	$	291,755	$	103,325	$	125,399	$	165,188	$	1,250,422	$	1,569,271	$	1,953,874
Special mention		2,616		6,523		5,248		6,140		6,419		3,381		28,171		32,462		30,113
Substandard		3,230		3,615		7,861		1,541		1,292		823		15,937		10,078		10,270
Doubtful		—		—		—		—		—		—		—		—		—
	$	151,579	$	212,537	$	304,864	$	111,006	$	133,110	$	169,392	$	1,294,530	$	1,611,811	$	1,994,257

The following table presents the credit risk profile by risk grade of consumer loans for acquired non-credit impaired loans:


	Consumer Owner Occupied						Home Equity						Consumer
	June 30,		December 31,		June 30,		June 30,		December 31,		June 30,		June 30,		December 31,		June 30,
(Dollars in thousands)	2019		2018		2018		2019		2018		2018		2019		2018		2018
Pass	$	566,433	$	617,391	$	664,594	$	196,254	$	227,515	$	263,994	$	96,766	$	108,833	$	123,807
Special mention		6,749		7,868		7,495		5,459		7,688		8,319		637		698		723
Substandard		4,102		3,554		4,507		7,064		7,222		6,593		2,287		2,246		2,135
Doubtful		—		—		—		—		—		—		—		—		—
	$	577,284	$	628,813	$	676,596	$	208,777	$	242,425	$	278,906	$	99,690	$	111,777	$	126,665


	Consumer Total
	June 30,		December 31,		June 30,
	2019		2018		2018
Pass	$	859,453	$	953,739	$	1,052,395
Special mention		12,845		16,254		16,537
Substandard		13,453		13,022		13,235
Doubtful		—		—		—
	$	885,751	$	983,015	$	1,082,167

The following table presents the credit risk profile by risk grade of total acquired non-credit impaired loans:


	Total Acquired
	Non-credit Impaired Loans
	June 30,		December 31,		June 30,
(Dollars in thousands)	2019		2018		2018
Pass	$	2,109,875	$	2,523,010	$	3,006,269
Special mention		41,016		48,716		46,650
Substandard		29,390		23,100		23,505
Doubtful		—		—		—
	$	2,180,281	$	2,594,826	$	3,076,424

The following table presents the credit risk profile by risk grade of acquired credit impaired loans (identified as credit-impaired at the time of acquisition), net of the related discount (this table should be read in conjunction with the allowance for acquired credit impaired loan losses table found on page 26):


							Commercial Real Estate—
							Construction and
	Commercial Real Estate						Development
	June 30,		December 31,		June 30,		June 30,		December 31,		June 30,
(Dollars in thousands)	2019		2018		2018		2019		2018		2018
Pass	$	132,852	$	160,788	$	177,996	$	18,665	$	20,293	$	25,243
Special mention		13,811		14,393		22,568		3,181		3,001		4,884
Substandard		17,877		21,583		27,175		5,168		9,648		10,824
Doubtful		—		—		—		—		—		—
	$	164,540	$	196,764	$	227,739	$	27,014	$	32,942	$	40,951


	Residential Real Estate						Consumer						Commercial & Industrial
	June 30,		December 31,		June 30,		June 30,		December 31,		June 30,		June 30,		December 31,		June 30,
	2019		2018		2018		2019		2018		2018		2019		2018		2018
Pass	$	93,303	$	104,181	$	116,461	$	4,896	$	5,751	$	6,144	$	6,389	$	5,093	$	6,161
Special mention		39,020		41,964		46,089		13,250		14,484		15,613		508		546		1,139
Substandard		51,885		61,337		66,952		20,478		22,257		23,876		3,301		4,404		5,280
Doubtful		—		—		—		—		—		—		—		—		—
	$	184,208	$	207,482	$	229,502	$	38,624	$	42,492	$	45,633	$	10,198	$	10,043	$	12,580


	Total Acquired
	Credit Impaired Loans
	June 30,		December 31,		June 30,
	2019		2018		2018
Pass	$	256,105	$	296,106	$	332,005
Special mention		69,770		74,388		90,293
Substandard		98,709		119,229		134,107
Doubtful		—		—		—
	$	424,584	$	489,723	$	556,405

The risk grading of acquired credit impaired loans is determined utilizing a loan’s contractual balance, while the amount recorded in the financial statements and reflected above is the carrying value.

The following table presents an aging analysis of past due loans (includes nonaccrual loans), segregated by class for non-acquired loans:


	30 - 59 Days		60 - 89 Days		90+ Days		Total				Total
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans
June 30, 2019
Commercial real estate:
Construction and land development	$	630	$	54	$	498	$	1,182	$	878,542	$	879,724
Commercial non-owner occupied		—		—		—		—		1,723,640		1,723,640
Commercial owner occupied		1,474		4,514		1,161		7,149		1,582,838		1,589,987
Consumer real estate:
Consumer owner occupied		669		215		2,953		3,837		2,076,112		2,079,949
Home equity loans		424		136		592		1,152		513,090		514,242
Commercial and industrial		1,007		369		107		1,483		1,113,030		1,114,513
Other income producing property		674		514		110		1,298		212,905		214,203
Consumer		676		415		746		1,837		501,631		503,468
Other loans		—		—		—		—		1,601		1,601
	$	5,554	$	6,217	$	6,167	$	17,938	$	8,603,389	$	8,621,327
December 31, 2018
Commercial real estate:
Construction and land development	$	693	$	305	$	452	$	1,450	$	839,995	$	841,445
Commercial non-owner occupied		68		18		396		482		1,415,069		1,415,551
Commercial owner occupied		1,639		1,495		904		4,038		1,513,513		1,517,551
Consumer real estate:
Consumer owner occupied		1,460		789		943		3,192		1,933,073		1,936,265
Home equity loans		744		532		713		1,989		493,159		495,148
Commercial and industrial		898		120		573		1,591		1,053,361		1,054,952
Other income producing property		169		26		289		484		213,869		214,353
Consumer		437		174		718		1,329		447,335		448,664
Other loans		—		—		—		—		9,357		9,357
	$	6,108	$	3,459	$	4,988	$	14,555	$	7,918,731	$	7,933,286
June 30, 2018
Commercial real estate:
Construction and land development	$	1,222	$	—	$	344	$	1,566	$	905,324	$	906,890
Commercial non-owner occupied		354		19		659		1,032		1,134,203		1,135,235
Commercial owner occupied		1,578		1,599		1,314		4,491		1,367,962		1,372,453
Consumer real estate:
Consumer owner occupied		479		387		900		1,766		1,732,158		1,733,924
Home equity loans		913		473		1,114		2,500		454,446		456,946
Commercial and industrial		762		94		815		1,671		939,396		941,067
Other income producing property		157		5		259		421		205,086		205,507
Consumer		475		202		557		1,234		415,416		416,650
Other loans		—		—		—		—		28,867		28,867
	$	5,940	$	2,779	$	5,962	$	14,681	$	7,182,858	$	7,197,539

The following table presents an aging analysis of past due loans (includes nonaccrual loans), segregated by class for acquired non-credit impaired loans:


	30 - 59 Days		60 - 89 Days		90+ Days		Total				Total
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans
June 30, 2019
Commercial real estate:
Construction and land development	$	169	$	169	$	317	$	655	$	59,736	$	60,391
Commercial non-owner occupied		640		—		265		905		594,462		595,367
Commercial owner occupied		933		366		891		2,190		373,997		376,187
Consumer real estate:
Consumer owner occupied		970		—		413		1,383		575,901		577,284
Home equity loans		1,107		322		587		2,016		206,761		208,777
Commercial and industrial		1,266		1,543		323		3,132		148,447		151,579
Other income producing property		897		10		109		1,016		109,990		111,006
Consumer		424		194		323		941		98,749		99,690
	$	6,406	$	2,604	$	3,228	$	12,238	$	2,168,043	$	2,180,281
December 31, 2018
Commercial real estate:
Construction and land development	$	647	$	45	$	365	$	1,057	$	164,013	$	165,070
Commercial non-owner occupied		607		21		283		911		678,342		679,253
Commercial owner occupied		964		1,006		—		1,970		419,871		421,841
Consumer real estate:
Consumer owner occupied		1,127		621		789		2,537		626,276		628,813
Home equity loans		1,286		442		2,209		3,937		238,488		242,425
Commercial and industrial		2,648		130		19		2,797		209,740		212,537
Other income producing property		603		276		129		1,008		132,102		133,110
Consumer		574		209		532		1,315		110,462		111,777
	$	8,456	$	2,750	$	4,326	$	15,532	$	2,579,294	$	2,594,826
June 30, 2018
Commercial real estate:
Construction and land development	$	666	$	66	$	309	$	1,041	$	280,241	$	281,282
Commercial non-owner occupied		2,936		—		157		3,093		749,372		752,465
Commercial owner occupied		1,121		11		737		1,869		484,385		486,254
Consumer real estate:
Consumer owner occupied		1,434		207		860		2,501		674,095		676,596
Home equity loans		1,656		326		2,197		4,179		274,727		278,906
Commercial and industrial		115		118		21		254		304,610		304,864
Other income producing property		544		14		145		703		168,689		169,392
Consumer		436		717		296		1,449		125,216		126,665
	$	8,908	$	1,459	$	4,722	$	15,089	$	3,061,335	$	3,076,424

The following table presents an aging analysis of past due loans (includes nonaccrual loans), segregated by class for acquired credit impaired loans:


	30 - 59 Days		60 - 89 Days		90+ Days		Total				Total
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans
June 30, 2019
Commercial real estate	$	883	$	244	$	4,263	$	5,390	$	159,150	$	164,540
Commercial real estate—construction and development		126		—		152		278		26,736		27,014
Residential real estate		3,011		2,101		4,302		9,414		174,794		184,208
Consumer		567		174		664		1,405		37,219		38,624
Commercial and industrial		49		—		80		129		10,069		10,198
	$	4,636	$	2,519	$	9,461	$	16,616	$	407,968	$	424,584
December 31, 2018
Commercial real estate	$	876	$	112	$	4,533	$	5,521	$	191,243	$	196,764
Commercial real estate—construction and development		115		12		2,816		2,943		29,999		32,942
Residential real estate		4,620		1,251		8,487		14,358		193,124		207,482
Consumer		722		90		839		1,651		40,841		42,492
Commercial and industrial		2,437		—		88		2,525		7,518		10,043
	$	8,770	$	1,465	$	16,763	$	26,998	$	462,725	$	489,723
June 30, 2018
Commercial real estate	$	621	$	553	$	7,637	$	8,811	$	218,928	$	227,739
Commercial real estate—construction and development		175		—		3,212		3,387		37,564		40,951
Residential real estate		5,279		3,989		6,948		16,216		213,286		229,502
Consumer		767		174		763		1,704		43,929		45,633
Commercial and industrial		125		386		465		976		11,604		12,580
	$	6,967	$	5,102	$	19,025	$	31,094	$	525,311	$	556,405

The following is a summary of certain information pertaining to impaired non-acquired loans:


	Unpaid		Recorded		Gross
	Contractual		Investment		Recorded		Total
	Principal		With No		Investment		Recorded		Related
(Dollars in thousands)	Balance		Allowance		With Allowance		Investment		Allowance
June 30, 2019
Commercial real estate:
Construction and land development	$	36,539	$	321	$	35,809	$	36,130	$	715
Commercial non-owner occupied		187		85		16		101		1
Commercial owner occupied		6,673		3,833		1,607		5,440		33
Consumer real estate:
Consumer owner occupied		5,989		3,983		1,583		5,566		35
Home equity loans		2,566		1,084		1,352		2,436		125
Commercial and industrial		2,708		509		2,165		2,674		394
Other income producing property		2,333		129		1,935		2,064		78
Consumer		158		—		98		98		3
Total	$	57,153	$	9,944	$	44,565	$	54,509	$	1,384
December 31, 2018
Commercial real estate:
Construction and land development	$	38,314	$	339	$	37,574	$	37,913	$	788
Commercial non-owner occupied		1,157		536		489		1,025		70
Commercial owner occupied		5,085		3,101		1,041		4,142		27
Consumer real estate:
Consumer owner occupied		7,291		4,992		1,769		6,761		41
Home equity loans		2,953		1,129		1,697		2,826		142
Commercial and industrial		1,332		467		824		1,291		416
Other income producing property		3,117		150		2,722		2,872		142
Consumer		211		—		188		188		2
Total	$	59,460	$	10,714	$	46,304	$	57,018	$	1,628
June 30, 2018
Commercial real estate:
Construction and land development	$	42,955	$	600	$	41,792	$	42,392	$	846
Commercial non-owner occupied		1,505		831		517		1,348		93
Commercial owner occupied		5,733		3,031		1,719		4,750		44
Consumer real estate:
Consumer owner occupied		6,085		4,631		997		5,628		30
Home equity loans		3,256		1,146		1,998		3,144		180
Commercial and industrial		1,876		724		1,110		1,834		485
Other income producing property		3,473		234		3,006		3,240		144
Consumer		325		—		257		257		7
Total	$	65,208	$	11,197	$	51,396	$	62,593	$	1,829

Acquired credit impaired loans are accounted for in pools as shown on page 21 rather than being individually evaluated for impairment; therefore, the table above excludes acquired credit impaired loans.

The following summarizes the average investment in impaired non-acquired loans, and interest income recognized on these loans:


	Three Months Ended June 30,
	2019				2018
	Average				Average
	Investment in		Interest Income		Investment in		Interest Income
(Dollars in thousands)	Impaired Loans		Recognized		Impaired Loans		Recognized
Commercial real estate:
Construction and land development	$	37,194	$	310	$	44,295	$	298
Commercial non-owner occupied		238		2		1,265		9
Commercial owner occupied		4,830		94		5,164		72
Consumer real estate:
Consumer owner occupied		6,226		44		5,561		44
Home equity loans		2,595		32		3,156		36
Commercial and industrial		1,994		66		1,756		19
Other income producing property		2,210		24		3,163		42
Consumer		104		—		285		—
Total Impaired Loans	$	55,391	$	572	$	64,645	$	520


	Six Months Ended June 30,
	2019				2018
	Average				Average
	Investment in		Interest Income		Investment in		Interest Income
(Dollars in thousands)	Impaired Loans		Recognized		Impaired Loans		Recognized
Commercial real estate:
Construction and land development	$	37,021	$	791	$	42,811	$	810
Commercial non-owner occupied		563		4		1,362		15
Commercial owner occupied		4,791		161		5,196		147
Consumer real estate:
Consumer owner occupied		6,164		93		5,630		87
Home equity loans		2,631		64		3,077		65
Commercial and industrial		1,982		86		1,495		36
Other income producing property		2,468		54		3,189		88
Consumer		144		—		248		—
Other loans		—		—		—		—
Total Impaired Loans	$	55,764	$	1,253	$	63,008	$	1,248

The following is a summary of information pertaining to non-acquired nonaccrual loans by class, including restructured loans:


	June 30,		December 31,		June 30,
(Dollars in thousands)	2019		2018		2018
Commercial non-owner occupied real estate:
Construction and land development	$	299	$	424	$	423
Commercial non-owner occupied		481		831		1,109
Total commercial non-owner occupied real estate		780		1,255		1,532
Consumer real estate:
Consumer owner occupied		6,688		7,109		6,465
Home equity loans		1,740		2,333		2,308
Total consumer real estate		8,428		9,442		8,773
Commercial owner occupied real estate		3,459		1,068		1,526
Commercial and industrial		285		647		811
Other income producing property		351		500		323
Consumer		1,351		1,267		893
Restructured loans		671		648		902
Total loans on nonaccrual status	$	15,325	$	14,827	$	14,760

The following is a summary of information pertaining to acquired non-credit impaired nonaccrual loans by class, including restructured loans:


	June 30,		December 31,		June 30,
(Dollars in thousands)	2019		2018		2018
Commercial non-owner occupied real estate:
Construction and land development	$	1,207	$	252	$	369
Commercial non-owner occupied		277		283		—
Total commercial non-owner occupied real estate		1,484		535		369
Consumer real estate:
Consumer owner occupied		1,699		3,864		2,136
Home equity loans		3,023		4,512		4,234
Total consumer real estate		4,722		8,376		6,370
Commercial owner occupied real estate		1,108		1,470		885
Commercial and industrial		964		1,296		101
Other income producing property		228		244		254
Consumer		1,442		1,568		1,394
Total loans on nonaccrual status	$	9,948	$	13,489	$	9,373

In the course of resolving delinquent loans, the Bank may choose to restructure the contractual terms of certain loans. Any loans that are modified are reviewed by the Bank to determine if a troubled debt restructuring (“TDR” or “restructured loan”) has occurred. The Bank designates loan modifications as TDRs when it grants a concession to a borrower that it would not otherwise consider due to the borrower experiencing financial difficulty (FASB ASC Topic 310-40). The concessions granted on TDRs generally include terms to reduce the interest rate, extend the term of the debt obligation, or modify the payment structure on the debt obligation.

Loans on nonaccrual status at the date of modification are initially classified as nonaccrual TDRs. Loans on accruing status at the date of concession are initially classified as accruing TDRs if the note is reasonably assured of repayment and performance is expected in accordance with its modified terms. Such loans may be designated as nonaccrual loans subsequent to the concession date if reasonable doubt exists as to the collection of interest or principal under the restructuring agreement. Nonaccrual TDRs are returned to accruing status when there is economic substance to the restructuring, there is documented credit evaluation of the borrower’s financial condition, the remaining balance is reasonably assured of repayment in accordance with its modified terms, and the borrower has demonstrated sustained repayment performance in accordance with the modified terms for a reasonable period of time (generally a minimum of six months). For the six months ended June 30, 2019 and 2018, our TDRs were not material.