Schedule of activity in purchased credit impaired loans

The following table presents changes in the carrying value of PCI loans.

($ in thousands) Purchased Credit Impaired Loans	For the Six Months Ended June 30, 2018			For the Year Ended December 31, 2017
Balance at beginning of period	$	23,165			514
Additions due to acquisition of Carolina Bank		—			19,254
Additions due to acquisition of Asheville Savings Bank		—			9,886
Change due to payments received and accretion		(2,328	)		(6,016	)
Change due to loan charge-offs		(10	)		(12	)
Transfers to foreclosed real estate		—			(69	)
Other		5			(392	)
Balance at end of period	$	20,832			23,165

The following table presents changes in the accretable yield for PCI loans.

($ in thousands) Accretable Yield for PCI loans	For the Six Months Ended June 30, 2018			For the Year Ended December 31, 2017
Balance at beginning of period	$	4,688			—
Additions due to acquisition of Carolina Bank		—			3,617
Additions due to acquisition of Asheville Savings Bank		—			1,804
Accretion		(784	)		(1,846	)
Reclassification from (to) nonaccretable difference		206			423
Other, net		48			690
Balance at end of period	$	4,158			4,688

Schedule of nonaccrual loans

The following is a summary of the Company’s nonaccrual loans by major categories.

($ in thousands)	June 30, 2018		December 31, 2017
Commercial, financial, and agricultural	$	3,407		1,001
Real estate – construction, land development & other land loans		1,374		1,822
Real estate – mortgage – residential (1-4 family) first mortgages		11,513		12,201
Real estate – mortgage – home equity loans / lines of credit		1,765		2,524
Real estate – mortgage – commercial and other		7,292		3,345
Installment loans to individuals		143		75
Total	$	25,494		20,968

Schedule of activity in the allowance for loan losses for non-covered and covered loans

The following table presents the activity in the allowance for loan losses for all loans for the three and six months ended June 30, 2018.

($ 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			Installment Loans to Individuals			Unallo -cated			Total

As of and for the three months ended June 30, 2018
Beginning balance	$	2,536			2,317			5,892			2,266			5,991			844			3,452			23,298
Charge-offs		(370	)		(30	)		(172	)		(10	)		(271	)		(144	)		—			(997	)
Recoveries		313			341			371			90			542			50			—			1,707
Provisions		(211	)		64			968			(96	)		1,033			147			(2,615	)		(710	)
Ending balance	$	2,268			2,692			7,059			2,250			7,295			897			837			23,298

As of and for the six months ended June 30, 2018

Beginning balance	$	3,111			2,816			6,147			1,827			6,475			950			1,972			23,298
Charge-offs		(609	)		(32	)		(415	)		(186	)		(312	)		(262	)		—			(1,816	)
Recoveries		812			3,387			516			243			1,124			103			—			6,185
Provisions		(1,046	)		(3,479	)		811			366			8			106			(1,135	)		(4,369	)
Ending balance	$	2,268			2,692			7,059			2,250			7,295			897			837			23,298

Ending balances as of June 30, 2018: Allowance for loan losses
Individually evaluated for impairment	$	277			302			2,756			415			1,231			6			—			4,987
Collectively evaluated for impairment	$	1,991			2,390			4,133			1,794			6,052			891			837			18,088
Purchased credit impaired	$	—			—			170			41			12			—			—			223

Loans receivable as of June 30, 2018:
Ending balance – total	$	417,366			600,031			1,000,189			369,875			1,690,175			71,823			—			4,149,459
Unamortized net deferred loan fees																							(69	)
Total loans																						$	4,149,390

Ending balances as of June 30, 2018: Loans
Individually evaluated for impairment	$	3,208			3,549			15,247			671			10,333			10			—			33,018
Collectively evaluated for impairment	$	413,889			596,157			977,549			368,831			1,667,700			71,483			—			4,095,609
Purchased credit impaired	$	269			325			7,393			373			12,142			330			—			20,832

The following table presents the activity in the allowance for loan losses for the year ended December 31, 2017.

($ 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			Installment Loans to Individuals			Unallo -cated		Total

As of and for the year ended December 31, 2017
Beginning balance	$	3,829			2,691			7,704			2,420			5,098			1,145			894		23,781
Charge-offs		(1,622	)		(589	)		(2,641	)		(978	)		(1,182	)		(799	)		—		(7,811	)
Recoveries		1,311			2,579			1,076			333			1,027			279			—		6,605
Provisions		(407	)		(1,865	)		8			52			1,532			325			1,078		723
Ending balance	$	3,111			2,816			6,147			1,827			6,475			950			1,972		23,298

Ending balances as of December 31, 2017: Allowance for loan losses
Individually evaluated for impairment	$	215			18			1,099			—			232			—			—		1,564
Collectively evaluated for impairment	$	2,896			2,798			4,831			1,788			6,226			950			1,972		21,461
Purchased credit impaired	$	—			—			217			39			17			—			—		273

Loans receivable as of December 31, 2017:
Ending balance – total	$	381,130			539,020			972,772			379,978			1,696,107			74,348			—		4,043,355
Unamortized net deferred loan fees																						(986	)
Total loans																					$	4,042,369

Ending balances as of December 31, 2017: Loans
Individually evaluated for impairment	$	579			2,975			14,800			368			8,493			—			—		27,215
Collectively evaluated for impairment	$	379,903			535,638			949,113			379,327			1,675,102			73,892			—		3,992,975
Purchased credit impaired	$	648			407			8,859			283			12,512			456			—		23,165

The following table presents the activity in the allowance for loan losses for all loans for the three and six months ended June 30, 2017.

($ 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			Installment Loans to Individuals			Unallo -cated		Total

As of and for the three months ended June 30, 2017
Beginning balance	$	3,792			2,764			7,376			2,138			5,979			1,067			430		23,546
Charge-offs		(814	)		(92	)		(353	)		(347	)		(88	)		(172	)		—		(1,866	)
Recoveries		220			981			440			65			555			84			—		2,345
Provisions		232			(977	)		(378	)		201			(293	)		95			1,120		—
Ending balance	$	3,430			2,676			7,085			2,057			6,153			1,074			1,550		24,025

As of and for the six months ended June 30, 2017

Beginning balance	$	3,829			2,691			7,704			2,420			5,098			1,145			894		23,781
Charge-offs		(1,204	)		(269	)		(1,247	)		(578	)		(414	)		(359	)		—		(4,071	)
Recoveries		518			1,471			636			130			698			139			—		3,592
Provisions		287			(1,217	)		(8	)		85			771			149			656		723
Ending balance	$	3,430			2,676			7,085			2,057			6,153			1,074			1,550		24,025

Ending balances as of June 30, 2017: Allowance for loan losses
Individually evaluated for impairment	$	8			182			1,304			—			424			—			—		1,918
Collectively evaluated for impairment	$	3,422			2,494			5,781			2,057			5,729			1,074			1,550		22,107
Purchased credit impaired	$	—			—			—			—			—			—			—		—

Loans receivable as of June 30, 2017:
Ending balance – total	$	383,834			446,661			783,759			320,953			1,384,569			57,008			—		3,376,784
Unamortized net deferred loan fees																						(808	)
Total loans																					$	3,375,976

Ending balances as of June 30, 2017: Loans
Individually evaluated for impairment	$	235			3,250			17,083			54			9,053			—			—		29,675
Collectively evaluated for impairment	$	383,330			442,956			763,224			320,174			1,363,629			56,950			—		3,330,263
Purchased credit impaired	$	269			455			3,452			725			11,887			58			—		16,846

Schedule of recorded investment in loans by credit quality indicators

The following table presents the Company’s recorded investment in loans by credit quality indicators as of June 30, 2018.

($ in thousands)
	Pass		Special Mention Loans		Classified Accruing Loans		Classified Nonaccrual Loans		Total

Commercial, financial, and agricultural	$	410,434		2,322		934		3,407		417,097
Real estate – construction, land development & other land loans		586,310		6,812		5,210		1,374		599,706
Real estate – mortgage – residential (1-4 family) first mortgages		941,399		13,829		26,055		11,513		992,796
Real estate – mortgage – home equity loans / lines of credit		357,507		1,698		8,532		1,765		369,502
Real estate – mortgage – commercial and other		1,648,367		16,644		5,730		7,292		1,678,033
Installment loans to individuals		70,776		215		359		143		71,493
Purchased credit impaired		6,376		7,059		7,397		—		20,832
Total	$	4,021,169		48,579		54,217		25,494		4,149,459
Unamortized net deferred loan fees										(69	)
Total loans										4,149,390

The following table presents the Company’s recorded investment in loans by credit quality indicators as of December 31, 2017.

($ in thousands)
	Pass		Special Mention Loans		Classified Accruing Loans		Classified Nonaccrual Loans		Total

Commercial, financial, and agricultural	$	368,658		9,901		922		1,001		380,482
Real estate – construction, land development & other land loans		523,642		7,129		6,020		1,822		538,613
Real estate – mortgage – residential (1-4 family) first mortgages		905,111		16,235		30,366		12,201		963,913
Real estate – mortgage – home equity loans / lines of credit		365,982		3,784		7,405		2,524		379,695
Real estate – mortgage – commercial and other		1,647,725		23,335		9,190		3,345		1,683,595
Installment loans to individuals		73,379		222		216		75		73,892
Purchased credit impaired		6,541		12,309		4,315		—		23,165
Total	$	3,891,038		72,915		58,434		20,968		4,043,355
Unamortized net deferred loan fees										(986	)
Total loans										4,042,369

Schedule of accruing restructured loans that defaulted in the period

Accruing restructured loans that were modified in the previous 12 months and that defaulted during the three months ended June 30, 2018 and 2017 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 June 30, 2018				For the three months ended June 30, 2017
	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	$	60		1	$	254
Real estate – mortgage – commercial and other		2		763		—		—

Total accruing TDRs that subsequently defaulted		3	$	823		1	$	254

Accruing restructured loans that were modified in the previous 12 months and that defaulted during the six months ended June 30, 2018 and 2017 are presented in the table below

($ in thousands)	For the six months ended June 30, 2018				For the six months ended June 30, 2017
	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	$	60		2	$	880
Real estate – mortgage – commercial and other		3		1,333		—		—

Total accruing TDRs that subsequently defaulted		4	$	1,393		2	$	880

Summary of contractually required payments expected at acquisition date

The following table relates to acquired Asheville Savings Bank PCI loans and summarizes the contractually required payments, which includes principal and interest, expected cash flows to be collected, and the fair value of acquired PCI loans at the acquisition date.

($ in thousands)	Asheville Savings Bank Acquisition on October 1, 2017
Contractually required payments	$	13,424
Nonaccretable difference		(1,734	)
Cash flows expected to be collected at acquisition		11,690
Accretable yield		(1,804	)
Fair value of PCI loans at acquisition date	$	9,886

Summary of contractually required payments not expected at acquisition date

The following table relates to acquired Carolina Bank purchased non-impaired loans and provides the contractually required payments, fair value, and estimate of contractual cash flows not expected to be collected at the acquisition date.

($ in thousands)	Carolina Bank Acquisition on March 3, 2017
Contractually required payments	$	569,980
Fair value of acquired loans at acquisition date		478,515
Contractual cash flows not expected to be collected		3,650