XML 27 R16.htm IDEA: XBRL DOCUMENT v3.20.2
Loans and Asset Quality Information
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Loans and Asset Quality Information Loans and Asset Quality Information
The following is a summary of the major categories of total loans outstanding:
($ in thousands)September 30, 2020December 31, 2019
 AmountPercentageAmountPercentage
All  loans:
Commercial, financial, and agricultural$804,831 17 %$504,271 11 %
Real estate – construction, land development & other land loans653,120 14 %530,866 12 %
Real estate – mortgage – residential (1-4 family) first mortgages1,017,087 21 %1,105,014 25 %
Real estate – mortgage – home equity loans / lines of credit310,326 6 %337,922 8 %
Real estate – mortgage – commercial and other1,983,622 41 %1,917,280 43 %
Consumer loans50,189 1 %56,172 1 %
Subtotal4,819,175 100 %4,451,525 100 %
Unamortized net deferred loan costs (fees)(5,439)1,941 
Total loans$4,813,736 $4,453,466 

Included in the table above are PPP loans totaling $244.9 million that are in the line item "Commercial, financial and agricultural." PPP loans are fully guaranteed by the SBA. Included in unamortized net deferred loan fees are $7.6 million in unamortized net deferred loan fees associated with PPP loans. These fees are being amortized under the effective interest method over the terms of the loans. Accelerated amortization will be recorded in the periods in which principal amounts are forgiven in accordance with the terms of the program.

Also included in the table above are various non-PPP SBA loans, with additional information on these loans presented in the table below.
($ in thousands)September 30, 2020December 31, 2019
Guaranteed portions of non-PPP SBA loans included in table above$46,085 54,400 
Unguaranteed portions of SBA Loans included in table above134,953 110,782 
Total non-PPP SBA loans included in the table above$181,038 165,182 
Sold portions of SBA with servicing retained - not included in tables above$379,123 316,730 
At September 30, 2020 and December 31, 2019, there was a remaining unaccreted discount on the retained portion of sold SBA loans amounting to $7.1 million at both period ends.
The Company has several acquired loan portfolios as a result of merger and acquisition transactions. In these transactions, the Company recorded loans at their fair value as required by applicable accounting guidance. Included in these loan portfolios were purchased credit impaired (“PCI”) loans, which are loans for which it is probable at acquisition date that all contractually required payments will not be collected. The remaining loans were considered to be purchased non-impaired loans and their related fair value discount or premium is being recognized as an adjustment to yield over the remaining life of each loan.
As of September 30, 2020 and December 31, 2019, there were remaining accretable discounts of $8.6 million and $11.1 million, respectively, related to purchased non-impaired loans. The discounts are amortized as yield adjustments over the respective lives of the loans, so long as the loans perform.
The following table presents changes in the carrying value of PCI loans.
PCI loansFor the Nine Months Ended September 30, 2020For the Nine Months Ended September 30, 2019
Balance at beginning of period$12,664 17,393 
Change due to payments received and accretion(3,062)(3,694)
Change due to loan charge-offs(13)(11)
Transfers to foreclosed real estate— — 
Other27 110 
Balance at end of period$9,616 13,798 

The following table presents changes in the accretable yield for PCI loans.
Accretable Yield for PCI loansFor the Nine Months Ended September 30, 2020For the Nine Months Ended September 30, 2019
Balance at beginning of period$4,149 4,750 
Accretion(927)(1,050)
Reclassification from (to) nonaccretable difference400 583 
Other, net(481)211 
Balance at end of period$3,141 4,494 
During the first nine months of 2020, the Company received $446,000 in payments that exceeded the carrying amount of the related PCI loans, of which $352,000 was recognized as loan discount accretion income, $80,000 was recorded as additional loan interest income, and $14,000 was recorded as a recovery. During the first nine months of 2019, the Company received $291,000 in payments that exceeded the carrying amount of the related PCI loans, of which $263,000 was recognized as loan discount accretion income and $28,000 was recorded as additional loan interest income.
Nonperforming assets are defined as nonaccrual loans, restructured loans, loans past due 90 or more days and still accruing interest, and foreclosed real estate. Nonperforming assets are summarized as follows.
($ in thousands)September 30,
2020		December 31,
2019
Nonperforming assets  
Nonaccrual loans$31,656 24,866 
TDR's - accruing9,896 9,053 
Accruing loans > 90 days past due— — 
Total nonperforming loans41,552 33,919 
Foreclosed real estate2,741 3,873 
Total nonperforming assets$44,293 37,792 
Purchased credit impaired loans not included above (1)$9,616 12,664 
(1) In the March 3, 2017 acquisition of Carolina Bank, and the October 1, 2017 acquisition of Asheville Savings Bank, the Company acquired $19.3 million and $9.9 million, respectively, in PCI loans in accordance with ASC 310-30 accounting guidance. These loans are excluded from nonperforming loans, including $0.8 million and $0.8 million in PCI loans at September 30, 2020 and December 31, 2019, respectively, that were contractually past due 90 days or more.
At September 30, 2020 and December 31, 2019, the Company had $1.8 million and $0.6 million in residential mortgage loans in process of foreclosure, respectively.

The following is a summary of the Company’s nonaccrual loans by major categories.
($ in thousands)September 30,
2020		December 31,
2019
Commercial, financial, and agricultural$8,473 5,518 
Real estate – construction, land development & other land loans872 1,067 
Real estate – mortgage – residential (1-4 family) first mortgages5,742 7,552 
Real estate – mortgage – home equity loans / lines of credit1,594 1,797 
Real estate – mortgage – commercial and other14,795 8,820 
Consumer loans180 112 
Total$31,656 24,866 

The following table presents an analysis of the payment status of the Company’s loans as of September 30, 2020. Due to the onset of the COVID-19 pandemic not occurring until late in the first quarter of 2020, as well as the Company's COVID-19 deferral program and the SBA's relief program, whereby the SBA is making six months of principal and interest payments on most SBA loans held in the Company's portfolio, the past due amounts below were not negatively impacted by the pandemic in a significant manner.
($ in thousands)Accruing
30-59
Days Past
Due		Accruing
60-89
Days
Past
Due		Accruing
90 Days
or More
Past
Due		Nonaccrual
Loans		Accruing
Current		Total Loans
Receivable
Commercial, financial, and agricultural$629 116 — 8,473 795,437 804,655 
Real estate – construction, land development & other land loans41 — — 872 652,057 652,970 
Real estate – mortgage – residential (1-4 family) first mortgages1,122 1,307 — 5,742 1,003,741 1,011,912 
Real estate – mortgage – home equity loans / lines of credit678 40 — 1,594 307,918 310,230 
Real estate – mortgage – commercial and other466 — — 14,795 1,964,390 1,979,651 
Consumer loans113 37 — 180 49,811 50,141 
Purchased credit impaired— 13 799 — 8,804 9,616 
Total$3,049 1,513 799 31,656 4,782,158 4,819,175 
Unamortized net deferred loan costs (fees)(5,439)
Total loans$4,813,736 
The following table presents an analysis of the payment status of the Company’s loans as of December 31, 2019.
($ in thousands)Accruing
30-59
Days
Past
Due		Accruing
60-89
Days
Past
Due		Accruing
90 Days
or More
Past
Due		Nonaccrual
Loans		Accruing
Current		Total Loans
Receivable
Commercial, financial, and agricultural$752 — — 5,518 497,788 504,058 
Real estate – construction, land development & other land loans37 152 — 1,067 529,444 530,700 
Real estate – mortgage – residential (1-4 family) first mortgages10,858 5,056 — 7,552 1,076,205 1,099,671 
Real estate – mortgage – home equity loans / lines of credit770 300 — 1,797 334,832 337,699 
Real estate – mortgage – commercial and other4,257 — — 8,820 1,897,573 1,910,650 
Consumer loans344 137 — 112 55,490 56,083 
Purchased credit impaired218 38 762 — 11,646 12,664 
Total$17,236 5,683 762 24,866 4,402,978 4,451,525 
Unamortized net deferred loan costs1,941 
Total loans$4,453,466 
The following table presents the activity in the allowance for loan losses for all loans for the three and nine months ended September 30, 2020.
($ in thousands)Commercial,
Financial,
and
Agricultural		Real Estate
–
Construction,
Land
Development
& Other Land
Loans		Real Estate
–
Residential
(1-4 Family)
First
Mortgages		Real Estate
– Mortgage
– Home
Equity
Lines of
Credit		Real Estate
– Mortgage
–
Commercial
and Other		Consumer LoansUnallocatedTotal
As of and for the three months ended September 30, 2020
Beginning balance$5,989 5,677 8,339 2,359 18,755 1,223 — 42,342 
Charge-offs(325)(6)(4)(23)— (310)— (668)
Recoveries126 213 279 207 482 125 — 1,432 
Provisions2,986 388 82 (83)2,369 308 70 6,120 
Ending balance$8,776 6,272 8,696 2,460 21,606 1,346 70 49,226 
As of and for the nine months ended September 30, 2020
Beginning balance$4,553 1,976 3,832 1,127 8,938 972 — 21,398 
Charge-offs(4,256)(51)(478)(404)(545)(707)— (6,441)
Recoveries603 856 594 373 584 251 — 3,261 
Provisions7,876 3,491 4,748 1,364 12,629 830 70 31,008 
Ending balance$8,776 6,272 8,696 2,460 21,606 1,346 70 49,226 
Ending balance as of September 30, 2020: Allowance for loan losses
Individually evaluated for impairment$1,814 56 820 — 1,624 — — 4,314 
Collectively evaluated for impairment$6,921 6,216 7,760 2,460 19,982 1,342 70 44,751 
Purchased credit impaired$41 — 116 — — 4 — 161 
Loans receivable as of September 30, 2020
Ending balance – total$804,831 653,120 1,017,087 310,326 1,983,622 50,189 — 4,819,175 
Unamortized net deferred loan fees(5,439)
Total loans$4,813,736 
Ending balances as of September 30, 2020: Loans
Individually evaluated for impairment$7,001 853 9,657 319 16,349 — — 34,179 
Collectively evaluated for impairment$797,654 652,117 1,002,254 309,911 1,963,303 50,141 — 4,775,380 
Purchased credit impaired$176 150 5,176 96 3,970 48 — 9,616 
The following table presents the activity in the allowance for loan losses for the year ended December 31, 2019.
($ in thousands)Commercial,
Financial,
and
Agricultural		Real Estate
–
Construction,
Land
Development
& Other Land
Loans		Real Estate
–
Residential
(1-4 Family)
First
Mortgages		Real Estate
– Mortgage
– Home
Equity
Lines of
Credit		Real Estate
– Mortgage
–
Commercial
and Other		Consumer LoansUnallocatedTotal
As of and for the year ended December 31, 2019
Beginning balance$2,889 2,243 5,197 1,665 7,983 952 110 21,039 
Charge-offs(2,473)(553)(657)(307)(1,556)(757)— (6,303)
Recoveries980 1,275 705 629 575 235 — 4,399 
Provisions3,157 (989)(1,413)(860)1,936 542 (110)2,263 
Ending balance$4,553 1,976 3,832 1,127 8,938 972 — 21,398 
Ending balances as of December 31, 2019: Allowance for loan losses
Individually evaluated for impairment$1,791 50 750 — 983 — — 3,574 
Collectively evaluated for impairment$2,720 1,926 2,976 1,127 7,931 961 — 17,641 
Purchased credit impaired$42 — 106 — 24 11 — 183 
Loans receivable as of December 31, 2019:
Ending balance – total$504,271 530,866 1,105,014 337,922 1,917,280 56,172 — 4,451,525 
Unamortized net deferred loan costs1,941 
Total loans$4,453,466 
Ending balances as of December 31, 2019: Loans
Individually evaluated for impairment$4,957 796 9,546 333 9,570 — — 25,202 
Collectively evaluated for impairment$499,101 529,904 1,090,125 337,366 1,901,080 56,083 — 4,413,659 
Purchased credit impaired$213 166 5,343 223 6,630 89 — 12,664 
The following table presents the activity in the allowance for loan losses for all loans for the three and nine months ended September 30, 2019.
($ in thousands)Commercial,
Financial,
and
Agricultural		Real Estate
–
Construction,
Land
Development
& Other Land
Loans		Real Estate
–
Residential
(1-4 Family)
First
Mortgages		Real Estate
– Mortgage
– Home
Equity
Lines of
Credit		Real Estate
– Mortgage
–
Commercial
and Other		Consumer LoansUnallocatedTotal
As of and for the three months ended September 30, 2019
Beginning balance$3,218 1,815 4,123 1,271 8,852 1,211 299 20,789 
Charge-offs(288)(47)(194)(70)(617)(119)— (1,335)
Recoveries163 308 139 58 176 67 — 911 
Provisions(226)(270)(112)(122)(199)(141)(35)(1,105)
Ending balance$2,867 1,806 3,956 1,137 8,212 1,018 264 19,260 
As of and for the nine months ended September 30, 2019
Beginning balance$2,889 2,243 5,197 1,665 7,983 952 110 21,039 
Charge-offs(1,224)(340)(379)(216)(1,455)(555)— (4,169)
Recoveries768 797 521 513 550 154 — 3,303 
Provisions434 (894)(1,383)(825)1,134 467 154 (913)
Ending balance$2,867 1,806 3,956 1,137 8,212 1,018 264 19,260 
Ending balance as of September 30, 2019: Allowance for loan losses
Individually evaluated for impairment$168 45 828 — 230 — — 1,271 
Collectively evaluated for impairment$2,657 1,761 3,060 1,137 7,925 1,005 264 17,809 
Purchased credit impaired$42 — 68 — 57 13 — 180 
Loans receivable as of September 30, 2019
Ending balance – total$486,768 471,326 1,093,619 343,378 1,928,931 70,962 — 4,394,984 
Unamortized net deferred loan costs1,560 
Total loans$4,396,544 
Ending balances as of September 30, 2019: Loans
Individually evaluated for impairment$1,090 804 9,942 338 6,941 — — 19,115 
Collectively evaluated for impairment$485,436 470,353 1,078,004 342,831 1,914,603 70,844 — 4,362,071 
Purchased credit impaired$242 169 5,673 209 7,387 118 — 13,798 
The following table presents loans individually evaluated for impairment by class of loans, excluding PCI loans, as of September 30, 2020.
($ in thousands)Recorded
Investment		Unpaid
Principal
Balance		Related
Allowance		Average
Recorded
Investment
Impaired loans with no related allowance recorded:
Commercial, financial, and agricultural$12 16 — 15 
Real estate – mortgage – construction, land development & other land loans316 494 — 246 
Real estate – mortgage – residential (1-4 family) first mortgages4,336 4,674 — 4,530 
Real estate – mortgage –home equity loans / lines of credit319 357 — 327 
Real estate – mortgage –commercial and other10,959 12,004 — 8,342 
Consumer loans— — — — 
Total impaired loans with no allowance$15,942 17,545 — 13,460 
Impaired loans with an allowance recorded:
Commercial, financial, and agricultural$6,989 7,042 1,814 5,421 
Real estate – mortgage – construction, land development & other land loans537 546 56 597 
Real estate – mortgage – residential (1-4 family) first mortgages5,321 5,498 820 5,185 
Real estate – mortgage –home equity loans / lines of credit— — — 26 
Real estate – mortgage –commercial and other5,390 6,231 1,624 5,528 
Consumer loans— — — — 
Total impaired loans with allowance$18,237 19,317 4,314 16,757 
Interest income recorded on impaired loans during the nine months ended September 30, 2020 was insignificant.
The following table presents loans individually evaluated for impairment by class of loans, excluding PCI loans, as of December 31, 2019.
($ in thousands)Recorded
Investment		Unpaid
Principal
Balance		Related
Allowance		Average
Recorded
Investment
Impaired loans with no related allowance recorded:
Commercial, financial, and agricultural$16 19 — 74 
Real estate – mortgage – construction, land development & other land loans221 263 — 366 
Real estate – mortgage – residential (1-4 family) first mortgages4,300 4,539 — 4,415 
Real estate – mortgage –home equity loans / lines of credit333 357 — 147 
Real estate – mortgage –commercial and other2,643 3,328 — 3,240 
Consumer loans— — — — 
Total impaired loans with no allowance$7,513 8,506 — 8,242 
Impaired loans with an allowance recorded:
Commercial, financial, and agricultural$4,941 4,995 1,791 1,681 
Real estate – mortgage – construction, land development & other land loans575 575 50 586 
Real estate – mortgage – residential (1-4 family) first mortgages5,246 5,469 750 6,206 
Real estate – mortgage –home equity loans / lines of credit— — — 55 
Real estate – mortgage –commercial and other6,927 7,914 983 5,136 
Consumer loans— — — — 
Total impaired loans with allowance$17,689 18,953 3,574 13,664 
Interest income recorded on impaired loans during the year ended December 31, 2019 was $1.3 million, and reflects interest income recorded on nonaccrual loans prior to them being placed on nonaccrual status and interest income recorded on accruing restructured loans.
The Company tracks credit quality based on its internal risk ratings. Upon origination, a loan is assigned an initial risk grade, which is generally based on several factors such as the borrower’s credit score, the loan-to-value ratio, the debt-to-income ratio, etc. Loans that are risk-graded as substandard during the origination process are declined. After loans are initially graded, they are monitored regularly for credit quality based on many factors, such as payment history, the borrower’s financial status, and changes in collateral value. Loans can be downgraded or upgraded depending on management’s evaluation of these factors. Internal risk-grading policies are consistent throughout each loan type.
The following describes the Company’s internal risk grades in ascending order of likelihood of loss:
Risk GradeDescription
Pass:
1Loans with virtually no risk, including cash secured loans.
2Loans with documented significant overall financial strength.  These loans have minimum chance of loss due to the presence of multiple sources of repayment – each clearly sufficient to satisfy the obligation.
3Loans with documented satisfactory overall financial strength.  These loans have a low loss potential due to presence of at least two clearly identified sources of repayment – each of which is sufficient to satisfy the obligation under the present circumstances.
4Loans to borrowers with acceptable financial condition.  These loans could have signs of minor operational weaknesses, lack of adequate financial information, or loans supported by collateral with questionable value or marketability.  
5Loans that represent above average risk due to minor weaknesses and warrant closer scrutiny by management.  Collateral is generally required and felt to provide reasonable coverage with realizable liquidation values in normal circumstances.  Repayment performance is satisfactory.
P
(Pass)		Consumer loans (<$500,000) that are of satisfactory credit quality with borrowers who exhibit good personal credit history, average personal financial strength and moderate debt levels.  These loans generally conform to Bank policy, but may include approved mitigated exceptions to the guidelines.  
Special Mention:
6Existing loans with defined weaknesses in primary source of repayment that, if not corrected, could cause a loss to the Bank.
Classified:
7An existing loan inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged, if any.  These loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt.
8Loans that have a well-defined weakness that make the collection or liquidation in full highly questionable and improbable.  Loss appears imminent, but the exact amount and timing is uncertain.
9Loans that are considered uncollectible and are in the process of being charged-off.  This grade is a temporary grade assigned for administrative purposes until the charge-off is completed.
F
(Fail)		Consumer loans (<$500,000) with a well-defined weakness, such as exceptions of any kind with no mitigating factors, history of paying outside the terms of the note, insufficient income to support the current level of debt, etc.
The following table presents the Company’s recorded investment in loans by credit quality indicators as of September 30, 2020.
($ in thousands)PassSpecial
Mention Loans		Classified
Accruing Loans		Classified
Nonaccrual
Loans		Total
Commercial, financial, and agricultural$778,593 16,517 1,072 8,473 804,655 
Real estate – construction, land development & other land loans643,826 7,058 1,214 872 652,970 
Real estate – mortgage – residential (1-4 family) first mortgages985,925 7,634 12,611 5,742 1,011,912 
Real estate – mortgage – home equity loans / lines of credit300,708 1,854 6,074 1,594 310,230 
Real estate – mortgage – commercial and other1,928,787 32,052 4,017 14,795 1,979,651 
Consumer loans49,658 85 218 180 50,141 
Purchased credit impaired7,778 86 1,752 — 9,616 
Total$4,695,275 65,286 26,958 31,656 4,819,175 
Unamortized net deferred loan costs(5,439)
Total loans4,813,736 
The following table presents the Company’s recorded investment in loans by credit quality indicators as of December 31, 2019.
($ in thousands)PassSpecial
Mention Loans		Classified
Accruing Loans		Classified
Nonaccrual
Loans		Total
Commercial, financial, and agricultural$486,081 7,998 4,461 5,518 504,058 
Real estate – construction, land development & other land loans522,767 4,075 2,791 1,067 530,700 
Real estate – mortgage – residential (1-4 family) first mortgages1,063,735 13,187 15,197 7,552 1,099,671 
Real estate – mortgage – home equity loans / lines of credit328,903 1,258 5,741 1,797 337,699 
Real estate – mortgage – commercial and other1,873,594 20,800 7,436 8,820 1,910,650 
Consumer loans55,203 413 355 112 56,083 
Purchased credit impaired8,098 2,590 1,976 — 12,664 
Total$4,338,381 50,321 37,957 24,866 4,451,525 
Unamortized net deferred loan costs1,941 
Total loans4,453,466 
Troubled Debt Restructurings
The restructuring of a loan is considered a “troubled debt restructuring” ("TDR") if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, extension of terms and other actions intended to minimize potential losses. As previously noted, under the CARES Act and banking regulator guidance, which the Company has applied, modifications deemed to be COVID-19-related are not considered a TDR if the loan was not more than 30 days past due as of December 31, 2019 and the deferral was executed between March 1, 2020 and the earlier of 60 days after the date of termination of the COVID-19 national emergency or December 31, 2020. As the initial 90 day deferrals began to expire late in the second quarter and early in the third quarter, the Company approved second deferral requests of another 90 days based on the circumstances of each borrower. Under these terms, as of September 30, 2020, the Company had payment deferrals for 207 loans with an aggregate loan balance of $186 million, and for the reasons previously noted, these loans are not included in the TDR's disclosed in this report. Approximately $158 million of the $186 million in deferrals were second deferrals and for $100 million of the total deferrals, the borrower is scheduled to make interest payments with only principal being deferred. The Company continues to accrue interest on these loans during the deferral period.
The vast majority of the Company’s TDR's modified during the periods ended September 30, 2020 and September 30, 2019 related to interest rate reductions combined with extension of terms. The Company does not generally grant principal forgiveness.
All loans classified as TDR's are considered to be impaired and are evaluated as such for determination of the allowance for loan losses. The Company’s TDR's can be classified as either nonaccrual or accruing based on the loan’s payment status. The TDR's that are nonaccrual are reported within the nonaccrual loan totals presented previously.

The following table presents information related to loans modified in a TDR during the three months ended September 30, 2020 and 2019.
($ in thousands)For the three months ended September 30, 2020For the three months ended September 30, 2019
Number of
Contracts		Pre-
Modification
Restructured
Balances		Post-
Modification
Restructured
Balances		Number of
Contracts		Pre-
Modification
Restructured
Balances		Post-
Modification
Restructured
Balances
TDRs – Accruing
Commercial, financial, and agricultural— $— $— — $— $— 
Real estate – construction, land development & other land loans— — — — — — 
Real estate – mortgage – residential (1-4 family) first mortgages— — — 1 133 133 
Real estate – mortgage – home equity loans / lines of credit— — — — — — 
Real estate – mortgage – commercial and other— — — — — — 
Consumer loans— — — — — — 
TDRs – Nonaccrual
Commercial, financial, and agricultural— — — — — — 
Real estate – construction, land development & other land loans— — — — — — 
Real estate – mortgage – residential (1-4 family) first mortgages— — — — — — 
Real estate – mortgage – home equity loans / lines of credit— — — — — — 
Real estate – mortgage – commercial and other1 2,344 2,344 — — — 
Consumer loans— — — — — — 
Total TDRs arising during period1 $2,344 $2,344 1 $133 $133 
The following table presents information related to loans modified in a TDR during the nine months ended September 30, 2020 and 2019.
($ in thousands)For the nine months ended September 30, 2020For the nine months ended September 30, 2019
Number of
Contracts		Pre-
Modification
Restructured
Balances		Post-
Modification
Restructured
Balances		Number of
Contracts		Pre-
Modification
Restructured
Balances		Post-
Modification
Restructured
Balances
TDRs – Accruing
Commercial, financial, and agricultural2 $143 $143 1 $143 $143 
Real estate – construction, land development & other land loans1 67 67 — — — 
Real estate – mortgage – residential (1-4 family) first mortgages2 75 78 4 523 527 
Real estate – mortgage – home equity loans / lines of credit— — — — — — 
Real estate – mortgage – commercial and other— — — 1 965 965 
Consumer loans— — — — — — 
TDRs – Nonaccrual
Commercial, financial, and agricultural— — — — — — 
Real estate – construction, land development & other land loans— — — — — — 
Real estate – mortgage – residential (1-4 family) first mortgages— — — — — — 
Real estate – mortgage – home equity loans / lines of credit— — — — — — 
Real estate – mortgage – commercial and other1 2,344 2,344 — — — 
Consumer loans— — — — — — 
Total TDRs arising during period6 $2,629 $2,632 6 $1,631 $1,635 

Accruing TDR's that were modified in the previous twelve months and that defaulted during the three months ended September 30, 2020 and 2019 are presented in the table below. The Company considers a loan to have defaulted when it becomes 90 or more days delinquent under the modified terms, has been transferred to nonaccrual status, or has been transferred to foreclosed real estate.
($ in thousands)For the Three Months Ended September 30, 2020For the Three Months Ended September 30, 2019
Number of
Contracts		Recorded
Investment		Number of
Contracts		Recorded
Investment
Accruing TDRs that subsequently defaulted
Real estate – mortgage – residential (1-4 family first mortgages)— $— — $— 
Real estate – mortgage – commercial and other— — — — 
Total accruing TDRs that subsequently defaulted1 $274 1 $93 

Accruing TDR's that were modified in the previous twelve months and that defaulted during the nine months ended September 30, 2020 and 2019 are presented in the table below.
($ in thousands)For the Nine Months Ended September 30, 2020For the Nine Months Ended September 30, 2019
Number of
Contracts		Recorded
Investment		Number of
Contracts		Recorded
Investment
Accruing TDRs that subsequently defaulted
Real estate – mortgage – residential (1-4 family first mortgages)— $— 1 $93 
Real estate – mortgage – commercial and other1 274 — — 
Total accruing TDRs that subsequently defaulted1 $274 1 $93