Note 6 - Loans and Allowance for Loan Losses

The following is a summary of current, accruing past due, and non-accrual loans by portfolio class as of June 30, 2018 and December 31, 2017.



Current, Accruing Past Due, and Non-accrual Loans
	June 30, 2018
(in thousands)	Current		Accruing 30-89 Days Past Due		Accruing 90 Days or Greater Past Due		Total Accruing Past Due		Non-accrual		Total
Commercial, financial and agricultural	$	7,170,877	$	18,425	$	547	$	18,972	$	81,231	$	7,271,080
Owner-occupied	4,994,038		4,180		98		4,278		6,076		5,004,392
Total commercial and industrial	12,164,915		22,605		645		23,250		87,307		12,275,472
Investment properties	5,505,409		1,838		611		2,449		1,738		5,509,596
1-4 family properties	715,154		2,309		—		2,309		3,247		720,710
Land and development	407,639		1,602		—		1,602		4,624		413,865
Total commercial real estate	6,628,202		5,749		611		6,360		9,609		6,644,171
Home equity lines	1,430,778		8,450		362		8,812		14,265		1,453,855
Consumer mortgages	2,741,064		4,805		244		5,049		4,822		2,750,935
Credit cards	235,406		1,793		1,225		3,018		—		238,424
Other consumer loans	1,783,466		8,990		135		9,125		1,325		1,793,916
Total consumer	6,190,714		24,038		1,966		26,004		20,412		6,237,130
Total loans	$	24,983,831	$	52,392	$	3,222	$	55,614	$	117,328	$	25,156,773	⁽¹	⁾

	December 31, 2017
(in thousands)	Current		Accruing 30-89 Days Past Due		Accruing 90 Days or Greater Past Due		Total Accruing Past Due		Non-accrual		Total
Commercial, financial and agricultural	$	7,097,127	$	11,214	$	1,016	$	12,230	$	70,130	$	7,179,487
Owner-occupied	4,830,150		6,880		479		7,359		6,654		4,844,163
Total commercial and industrial	11,927,277		18,094		1,495		19,589		76,784		12,023,650
Investment properties	5,663,665		2,506		90		2,596		3,804		5,670,065
1-4 family properties	775,023		3,545		202		3,747		2,849		781,619
Land and development	476,131		1,609		67		1,676		5,797		483,604
Total commercial real estate	6,914,819		7,660		359		8,019		12,450		6,935,288
Home equity lines	1,490,808		5,629		335		5,964		17,455		1,514,227
Consumer mortgages	2,622,061		3,971		268		4,239		7,203		2,633,503
Credit cards	229,015		1,930		1,731		3,661		—		232,676
Other consumer loans	1,461,223		10,333		226		10,559		1,669		1,473,451
Total consumer	5,803,107		21,863		2,560		24,423		26,327		5,853,857
Total loans	$	24,645,203	$	47,617	$	4,414	$	52,031	$	115,561	$	24,812,795	⁽²	⁾

⁽¹⁾Total before net deferred fees and costs of $22.7 million.

⁽²⁾Total before net deferred fees and costs of $25.3 million.

The credit quality of the loan portfolio is reviewed and updated no less frequently than quarterly using the standard asset classification system utilized by the federal banking agencies. These classifications are divided into three groups – Not Criticized (Pass), Special Mention, and Classified or Adverse rating (Substandard, Doubtful, and Loss) and are defined as follows:

Pass - loans which are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell in a timely manner, of any underlying collateral.

Special Mention - loans which have potential weaknesses that deserve management's close attention. These loans are not adversely classified and do not expose an institution to sufficient risk to warrant an adverse classification.

Substandard - loans which are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Loans with this classification are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful - loans which have all the weaknesses inherent in loans classified as Substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently known facts, conditions, and values.

Loss - loans which are considered by management to be uncollectible and of such little value that their continuance on the institution's books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted.

In the following tables, consumer loans are generally assigned a risk grade similar to the classifications described above; however, upon reaching 90 days and 120 days past due, they are generally downgraded to Substandard and Loss, respectively, in accordance with the FFIEC Uniform Retail Credit Classification and Account Management Policy. Additionally, in accordance with the Interagency Supervisory Guidance on Allowance for Loan and Lease Losses Estimation Practices for Loans and Lines of Credit Secured by Junior Liens on 1-4 Family Residential Properties, the risk grade classifications of home equity lines and consumer mortgages secured by junior liens on 1-4 family residential properties also consider available information on the payment status of any associated senior liens with other financial institutions.



Loan Portfolio Credit Exposure by Risk Grade
	June 30, 2018
(in thousands)	Pass		Special Mention		Substandard⁽¹⁾		Doubtful⁽²⁾		Loss			Total
Commercial, financial and agricultural	$	6,996,081	$	107,251	$	164,581	$	3,167	$	—		$	7,271,080
Owner-occupied	4,873,936		63,373		67,010		73		—			5,004,392
Total commercial and industrial	11,870,017		170,624		231,591		3,240		—			12,275,472
Investment properties	5,422,727		51,279		35,590		—		—			5,509,596
1-4 family properties	698,532		9,245		12,933		—		—			720,710
Land and development	369,071		29,612		12,053		3,129		—			413,865
Total commercial real estate	6,490,330		90,136		60,576		3,129		—			6,644,171
Home equity lines	1,435,724		—		16,599		175		1,357		⁽³⁾	1,453,855
Consumer mortgages	2,743,245		—		7,588		102		—		⁽³⁾	2,750,935
Credit cards	237,198		—		447		—		779		⁽⁴⁾	238,424
Other consumer loans	1,792,568		—		1,087		257		4		⁽³⁾	1,793,916
Total consumer	6,208,735		—		25,721		534		2,140			6,237,130
Total loans	$	24,569,082	$	260,760	$	317,888	$	6,903	$	2,140		$	25,156,773	⁽⁵	⁾

	December 31, 2017
(in thousands)	Pass		Special Mention		Substandard⁽¹⁾		Doubtful⁽²⁾		Loss			Total
Commercial, financial and agricultural	$6,929,506		$115,912		$132,818		$1,251		$	—		$7,179,487
Owner-occupied	4,713,877		50,140		80,073		73		—			4,844,163
Total commercial and industrial	11,643,383		166,052		212,891		1,324		—			12,023,650
Investment properties	5,586,792		64,628		18,645		—		—			5,670,065
1-4 family properties	745,299		19,419		16,901		—		—			781,619
Land and development	431,759		33,766		14,950		3,129		—			483,604
Total commercial real estate	6,763,850		117,813		50,496		3,129		—			6,935,288
Home equity lines	1,491,105		—		21,079		285		1,758		⁽³⁾	1,514,227
Consumer mortgages	2,622,499		—		10,607		291		106		⁽³⁾	2,633,503
Credit cards	230,945		—		399		—		1,332		⁽⁴⁾	232,676
Other consumer loans	1,470,944		—		2,168		329		10		⁽³⁾	1,473,451
Total consumer	5,815,493		—		34,253		905		3,206			5,853,857
Total loans	$	24,222,726	$	283,865	$	297,640	$	5,358	$	3,206		$	24,812,795	₍₆	₎

⁽¹⁾ Includes $209.6 million and $190.6 million of Substandard accruing loans at June 30, 2018 and December 31, 2017, respectively.

⁽²⁾ The loans within this risk grade are on non-accrual status. Commercial loans generally have an allowance for loan losses in accordance with ASC 310, and retail loans generally have an allowance for loan losses equal to 50% of the loan amount.

⁽³⁾ The loans within this risk grade are on non-accrual status and have an allowance for loan losses equal to the full loan amount.

⁽⁴⁾Represent amounts that were 120 days past due. These credits are downgraded to the Loss category with an allowance for loan losses equal to the full loan amount and are generally charged off upon reaching 181 days past due in accordance with the FFIEC Uniform Retail Credit Classification and Account Management Policy.

⁽⁵⁾Total before net deferred fees and costs of $22.7 million.

⁽⁶⁾Total before net deferred fees and costs of $25.3 million.

The following table details the changes in the allowance for loan losses by loan segment for the six and three months ended June 30, 2018 and 2017.



Allowance for Loan Losses and Recorded Investment in Loans
	As Of and For The Six Months Ended June 30, 2018
(in thousands)	Commercial & Industrial			Commercial Real Estate			Consumer			Total
Allowance for loan losses:
Beginning balance	$	126,803		$	74,998		$	47,467		$	249,268
Charge-offs	(23,786		)	(2,446		)	(9,894		)	(36,126		)
Recoveries	3,995			6,964			3,058			14,017
Provision for loan losses	23,323			(4,311		)	5,554			24,566
Ending balance⁽¹⁾	$	130,335		$	75,205		$	46,185		$	251,725
Ending balance: individually evaluated for impairment	$	9,474		$	4,687		$	771		$	14,932
Ending balance: collectively evaluated for impairment	$	120,861		$	70,518		$	45,414		$	236,793
Loans:
Ending balance: total loans⁽¹⁾⁽²⁾	$	12,275,472		$	6,644,171		$	6,237,130		$	25,156,773
Ending balance: individually evaluated for impairment	$	107,544		$	53,805		$	27,676		$	189,025
Ending balance: collectively evaluated for impairment	$	12,167,928		$	6,590,366		$	6,209,454		$	24,967,748

	As Of and For The Six Months Ended June 30, 2017
(in thousands)	Commercial & Industrial			Commercial Real Estate			Consumer			Total
Allowance for loan losses:
Beginning balance	$	125,778		$	81,816		$	44,164		$	251,758
Charge-offs	(19,535		)	(3,207		)	(9,656		)	(32,398		)
Recoveries	3,282			3,648			2,871			9,801
Provision for loan losses	13,912			(4,730		)	9,752			18,934
Ending balance⁽¹⁾	$	123,437		$	77,527		$	47,131		$	248,095
Ending balance: individually evaluated for impairment	$	7,226		$	4,386		$	1,038		$	12,650
Ending balance: collectively evaluated for impairment	$	116,211		$	73,141		$	46,093		$	235,445
Loans:
Ending balance: total loans⁽¹⁾⁽³⁾	$	11,742,945		$	7,422,234		$	5,291,371		$	24,456,550
Ending balance: individually evaluated for impairment	$	122,889		$	73,638		$	31,688		$	228,215
Ending balance: collectively evaluated for impairment	$	11,620,056		$	7,348,596		$	5,259,683		$	24,228,335

⁽¹⁾As of and for the six months ended June 30, 2018 and 2017, there were no purchased credit-impaired loans and no allowance for loan losses for purchased credit-impaired loans.

⁽²⁾Total before net deferred fees and costs of $22.7 million.

⁽³⁾Total before net deferred fees and costs of $26.0 million.



Allowance for Loan Losses and Recorded Investment in Loans
	As Of and For The Three Months Ended June 30, 2018
(in thousands)	Commercial & Industrial			Commercial Real Estate			Consumer			Total
Allowance for loan losses:
Beginning balance	$	134,745		$	73,991		$	49,028		$	257,764
Charge-offs	(15,770		)	(523		)	(5,211		)	(21,504		)
Recoveries	1,635			480			1,560			3,675
Provision for loan losses	9,725			1,257			808			11,790
Ending balance⁽¹⁾	$	130,335		$	75,205		$	46,185		$	251,725
Ending balance: individually evaluated for impairment	$	9,474		$	4,687		$	771		$	14,932
Ending balance: collectively evaluated for impairment	$	120,861		$	70,518		$	45,414		$	236,793
Loans:
Ending balance: total loans⁽¹⁾⁽²⁾	$	12,275,472		$	6,644,171		$	6,237,130		$	25,156,773
Ending balance: individually evaluated for impairment	$	107,544		$	53,805		$	27,676		$	189,025
Ending balance: collectively evaluated for impairment	$	12,167,928		$	6,590,366		$	6,209,454		$	24,967,748

	As Of and For The Three Months Ended June 30, 2017
(in thousands)	Commercial & Industrial			Commercial Real Estate			Consumer			Total
Allowance for loan losses:
Beginning balance	$	127,096		$	78,314		$	48,104		$	253,514
Charge-offs	(12,642		)	(1,299		)	(5,722		)	(19,663		)
Recoveries	1,458			759			1,767			3,984
Provision for loan losses	7,525			(247		)	2,982			10,260
Ending balance⁽¹⁾	$	123,437		$	77,527		$	47,131		$	248,095
Ending balance: individually evaluated for impairment	$	7,226		$	4,386		$	1,038		$	12,650
Ending balance: collectively evaluated for impairment	$	116,211		$	73,141		$	46,093		$	235,445
Loans:
Ending balance: total loans⁽¹⁾⁽³⁾	$	11,742,945		$	7,422,234		$	5,291,371		$	24,456,550
Ending balance: individually evaluated for impairment	$	122,889		$	73,638		$	31,688		$	228,215
Ending balance: collectively evaluated for impairment	$	11,620,056		$	7,348,596		$	5,259,683		$	24,228,335

⁽¹⁾As of and for the three months ended June 30, 2018 and 2017, there were no purchased credit-impaired loans and no allowance for loan losses for purchased credit-impaired loans.

⁽²⁾Total before net deferred fees and costs of $22.7 million.

⁽³⁾Total before net deferred fees and costs of $26.0 million.

The tables below summarize impaired loans (including accruing TDRs) as of June 30, 2018 and December 31, 2017.



Impaired Loans (including accruing TDRs)
	June 30, 2018						Six Months Ended June 30, 2018				Three Months Ended June 30, 2018
(in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded
Commercial, financial and agricultural	$	21,549	$	32,458	$	—	$	11,129	$	—	$	13,575	$	—
Owner-occupied	—		—		—		—		—		—		—
Total commercial and industrial	21,549		32,458		—		11,129		—		13,575		—
Investment properties	—		—		—		—		—		—		—
1-4 family properties	—		—		—		—		—		—		—
Land and development	—		—		—		19		—		—		—
Total commercial real estate	—		—		—		19		—		—		—
Home equity lines	—		—		—		1,423		—		724		—
Consumer mortgages	62		87		—		1,330		—		1,780		—
Credit cards	—		—		—		—		—		—		—
Other consumer loans	—		—		—		—		—		—		—
Total consumer	62		87		—		2,753		—		2,504		—
Total impaired loans with no related allowance recorded	$	21,611	$	32,545	$	—	$	13,901	$	—	$	16,079	$	—
With allowance recorded
Commercial, financial and agricultural	$	45,171	$	45,385	$	6,813	$	62,564	$	428	$	57,930	$	155
Owner-occupied	40,824		40,884		2,660		38,073		730		38,432		373
Total commercial and industrial	85,995		86,269		9,473		100,637		1,158		96,362		528
Investment properties	24,218		24,218		1,659		23,604		418		24,439		220
1-4 family properties	10,458		10,458		309		11,466		442		11,217		226
Land and development	19,129		20,869		2,720		18,280		150		18,428		74
Total commercial real estate	53,805		55,545		4,688		53,350		1,010		54,084		520
Home equity lines	3,915		3,915		174		3,822		76		3,262		30
Consumer mortgages	18,767		18,767		350		19,283		394		19,459		199
Credit cards	—		—		—		—		—		4,985		—
Other consumer loans	4,932		4,938		248		5,188		143		—		72
Total consumer	27,614		27,620		772		28,293		613		27,706		301
Total impaired loans with allowance recorded	$	167,414	$	169,434	$	14,933	$	182,280	$	2,781	$	178,152	$	1,349
Total impaired loans
Commercial, financial and agricultural	$	66,720	$	77,843	$	6,813	$	73,693	$	428	$	71,505	$	155
Owner-occupied	40,824		40,884		2,660		38,073		730		38,432		373
Total commercial and industrial	107,544		118,727		9,473		111,766		1,158		109,937		528
Investment properties	24,218		24,218		1,659		23,604		418		24,439		220
1-4 family properties	10,458		10,458		309		11,466		442		11,217		226
Land and development	19,129		20,869		2,720		18,299		150		18,428		74
Total commercial real estate	53,805		55,545		4,688		53,369		1,010		54,084		520
Home equity lines	3,915		3,915		174		5,245		76		3,986		30
Consumer mortgages	18,829		18,854		350		20,613		394		21,239		199
Credit cards	—		—		—		—		—		4,985		—
Other consumer loans	4,932		4,938		248		5,188		143		—		72
Total consumer	27,676		27,707		772		31,046		613		30,210		301
Total impaired loans	$	189,025	$	201,979	$	14,933	$	196,181	$	2,781	$	194,231	$	1,349



Impaired Loans (including accruing TDRs)
	December 31, 2017						Year Ended December 31, 2017
(in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded
Commercial, financial and agricultural	$	8,220	$	9,576	$	—	$	21,686	$	—
Owner-occupied	—		—		—		6,665		—
Total commercial and industrial	8,220		9,576		—		28,351		—
Investment properties	—		—		—		123		—
1-4 family properties	—		—		—		323		—
Land and development	56		1,740		—		1,816		—
Total commercial real estate	56		1,740		—		2,262		—
Home equity lines	2,746		2,943		—		1,205		—
Consumer mortgages	—		—		—		496		—
Credit cards	—		—		—		—		—
Other consumer loans	—		—		—		—		—
Total consumer	2,746		2,943		—		1,701		—
Total impaired loans with no related allowance recorded	$	11,022	$	14,259	$	—	$	32,314	$	—
With allowance recorded
Commercial, financial and agricultural	$	65,715	$	65,851	$	7,406	$	50,468	$	1,610
Owner-occupied	37,399		37,441		2,109		40,498		1,382
Total commercial and industrial	103,114		103,292		9,515		90,966		2,992
Investment properties	23,364		23,364		1,100		28,749		1,144
1-4 family properties	15,056		15,056		504		16,257		925
Land and development	18,420		18,476		2,636		23,338		404
Total commercial real estate	56,840		56,896		4,240		68,344		2,473
Home equity lines	5,096		5,096		114		7,476		334
Consumer mortgages	18,668		18,668		569		19,144		896
Credit cards	—		—		—		—		—
Other consumer loans	5,546		5,546		470		4,765		266
Total consumer	29,310		29,310		1,153		31,385		1,496
Total impaired loans with allowance recorded	$	189,264	$	189,498	$	14,908	$	190,695	$	6,961
Total impaired loans
Commercial, financial and agricultural	$	73,935	$	75,427	$	7,406	$	72,154	$	1,610
Owner-occupied	37,399		37,441		2,109		47,163		1,382
Total commercial and industrial	111,334		112,868		9,515		119,317		2,992
Investment properties	23,364		23,364		1,100		28,872		1,144
1-4 family properties	15,056		15,056		504		16,580		925
Land and development	18,476		20,216		2,636		25,154		404
Total commercial real estate	56,896		58,636		4,240		70,606		2,473
Home equity lines	7,842		8,039		114		8,681		334
Consumer mortgages	18,668		18,668		569		19,640		896
Credit cards	—		—		—		—		—
Other consumer loans	5,546		5,546		470		4,765		266
Total consumer	32,056		32,253		1,153		33,086		1,496
Total impaired loans	$	200,286	$	203,757	$	14,908	$	223,009	$	6,961

The average recorded investment in impaired loans was $233.8 million and $232.5 million respectively for the six and three months ended June 30, 2017. Excluding accruing TDRs, there was no interest income recognized for the investment in impaired loans for the six and three months ended June 30, 2017. Interest income recognized for accruing TDRs was $3.5 million and $1.8 million respectively for the six and three months ended June 30, 2017. At June 30, 2018 and December 31, 2017, impaired loans of $63.7 million and $49.0 million, respectively, were on non-accrual status.

Concessions provided in a TDR are primarily in the form of providing a below market interest rate given the borrower's credit risk, a period of time generally less than one year with a reduction of required principal and/or interest payments (e.g., interest only for a period of time), or an extension of the maturity of the loan generally for less than one year. Insignificant periods of reduction of principal and/or interest payments, or one-time deferrals of 3 months or less, are generally not considered to be financial concessions.

The following tables represent, by concession type, the post-modification balance for loans modified or renewed during the six and three months ended June 30, 2018 and 2017 that were reported as accruing or non-accruing TDRs.



TDRs by Concession Type
	Six Months Ended June 30, 2018
(in thousands, except contract data)	Number of Contracts	Principal Forgiveness		Below Market Interest Rate		Term Extensions and/or Other Concessions		Total
Commercial, financial and agricultural	14	$	—	$	—	$	1,565	$	1,565
Owner-occupied	6	—		4,799		684		5,483
Total commercial and industrial	20	—		4,799		2,249		7,048
Investment properties	3	—		6,011		2,215		8,226
1-4 family properties	7	—		965		492		1,457
Land and development	3	—		—		1,786		1,786
Total commercial real estate	13	—		6,976		4,493		11,469
Home equity lines	3	—		172		148		320
Consumer mortgages	14	—		4,695		87		4,782
Credit cards	—	—		—		—		—
Other consumer loans	31	—		925		821		1,746
Total consumer	48	—		5,792		1,056		6,848
Total TDRs	81	$	—	$	17,567	$	7,798	$	25,365	⁽¹	⁾

	Three Months Ended June 30, 2018
(in thousands, except contract data)	Number of Contracts	Principal Forgiveness		Below Market Interest Rate		Term Extensions and/or Other Concessions		Total
Commercial, financial and agricultural	5	$	—	$	—	$	576	$	576
Owner-occupied	4	—		2,094		592		2,686
Total commercial and industrial	9	—		2,094		1,168		3,262
Investment properties	2	—		6,011		256		6,267
1-4 family properties	1	—		—		492		492
Land and development	3	—		—		1,786		1,786
Total commercial real estate	6	—		6,011		2,534		8,545
Home equity lines	3	—		172		148		320
Consumer mortgages	7	—		2,963		87		3,050
Credit cards	—	—		—		—		—
Other consumer loans	17	—		388		313		701
Total consumer	27	—		3,523		548		4,071
Total TDRs	42	$	—	$	11,628	$	4,250	$	15,878	⁽¹	⁾

⁽¹⁾No net charge-offs were recorded during the six and three months ended June 30, 2018 upon restructuring of these loans.



TDRs by Concession Type
	Six Months Ended June 30, 2017
(in thousands, except contract data)	Number of Contracts	Principal Forgiveness		Below Market Interest Rate		Term Extensions and/or Other Concessions		Total
Commercial, financial and agricultural	28	$	—	$	5,760	$	6,279	$	12,039
Owner-occupied	1	—		—		22		22
Total commercial and industrial	29	—		5,760		6,301		12,061
Investment properties	—	—		—		—		—
1-4 family properties	16	—		2,089		513		2,602
Land and development	1	—		—		135		135
Total commercial real estate	17	—		2,089		648		2,737
Home equity lines	—	—		—		—		—
Consumer mortgages	1	—		—		9		9
Credit cards	—	—		—		—		—
Other consumer loans	8	—		—		570		570
Total consumer	9	—		—		579		579
Total TDRs	55	$	—	$	7,849	$	7,528	$	15,377	⁽²	⁾

	Three Months Ended June 30, 2017
(in thousands, except contract data)	Number of Contracts	Principal Forgiveness		Below Market Interest Rate		Term Extensions and/or Other Concessions		Total
Commercial, financial and agricultural	10	$	—	$	1,895	$	740	$	2,635
Owner-occupied	1	—		—		22		22
Total commercial and industrial	11	—		1,895		762		2,657
Investment properties	—	—		—		—		—
1-4 family properties	8	—		478		196		674
Land and development	1	—		—		135		135
Total commercial real estate	9	—		478		331		809
Home equity lines	—	—		—		—		—
Consumer mortgages	1	—		—		9		9
Credit cards	—	—		—		—		—
Other consumer loans	5	—		—		295		295
Total consumer	6	—		—		304		304
Total TDRs	26	$	—	$	2,373	$	1,397	$	3,770	⁽²	⁾

⁽²⁾ No net charge-offs were recorded during the six and three months ended June 30, 2017 upon restructuring of these loans.

For both the six and three months ended June 30, 2018 there were eight defaults with a recorded investment of $10.5 million on accruing TDRs restructured during the previous twelve months (defaults are defined as the earlier of the TDR being placed on non-accrual status or reaching 90 days past due with respect to principal and/or interest payments) compared to three defaults for both the six and three months ended June 30, 2017 with a recorded investment of $292 thousand.

If, at the time a loan was designated as a TDR, the loan was not already impaired, the measurement of impairment that resulted from the TDR designation closely approximates the reserve derived through specific loan measurement of impairment in accordance with ASC 310-10-35. Generally, the change in the allowance for loan losses resulting from such TDR designation is not significant. At June 30, 2018, the allowance for loan losses allocated to accruing TDRs totaling $125.3 million was $6.5 million compared to accruing TDRs of $151.3 million with an allocated allowance for loan losses of $8.7 million at December 31, 2017. Non-accrual, non-homogeneous loans (commercial-type impaired loans greater than $1 million) that are designated as TDRs are individually measured for the amount of impairment, if any, both before and after the TDR designation.