Note 4 — Allowance for Probable Loan Losses

The allowance for probable loan losses primarily consists of the aggregate loan loss allowances of the bank subsidiaries. The allowances are established through charges to operations in the form of provisions for probable loan losses. Loan losses or recoveries are charged or credited directly to the allowances. The allowance for probable loan losses of each bank subsidiary is maintained at a level considered appropriate by management, based on estimated probable losses in the loan portfolio. The allowance for probable loan losses is derived from the following elements: (i) allowances established on specific impaired loans, which are based on a review of the individual characteristics of each loan, including the customer’s ability to repay the loan, the underlying collateral values, and the industry in which the customer operates; (ii) allowances based on actual historical loss experience for similar types of loans in the Company’s loan portfolio; and (iii) allowances based on general economic conditions, changes in the mix of loans, company resources, border risk and credit quality indicators, among other things. All segments of the loan portfolio continue to be impacted by the prolonged economic recovery. Loans secured by real estate could be impacted negatively by the continued economic environment and resulting decrease in collateral values. Consumer loans may be impacted by continued and prolonged unemployment rates.

The Company’s management continually reviews the allowance for loan losses of the bank subsidiaries using the amounts determined from the allowances established on specific impaired loans, the allowance established on quantitative historical loss percentages, and the allowance based on qualitative data to establish an appropriate amount to maintain in the Company’s allowance for loan losses. Should any of the factors considered by management in evaluating the adequacy of the allowance for probable loan losses change, the Company’s estimate of probable loan losses could also change, which could affect the level of future provisions for probable loan losses. While the calculation of the allowance for probable loan losses utilizes management’s best judgment and all information reasonably available, the adequacy of the allowance is dependent on a variety of factors beyond the Company’s control, including, among other things, the performance of the entire loan portfolio, the economy, changes in interest rates and the view of regulatory authorities towards loan classifications.

The loan loss provision is determined using the following methods. On a weekly basis, loan past due reports are reviewed by the credit quality committee to determine if a loan has any potential problems and if a loan should be placed on the Company’s internal classified report. Additionally, the Company’s credit department reviews the majority of the Company’s loans for proper internal classification purposes, regardless of whether they are past due, and segregates any loans with potential problems for further review. The credit department will discuss the potential problem loans with the servicing loan officers to determine any relevant issues that were not discovered in the evaluation. Also, an analysis of loans that is provided through examinations by regulatory authorities is considered in the review process. After the above analysis is completed, the Company determines if a loan should be placed on an internal classified report because of issues related to the analysis of the credit, credit documents, collateral and/or payment history.

A summary of the transactions in the allowance for probable loan losses by loan class is as follows:


	Three Months Ended September 30, 2017
	Domestic														Foreign
			Commercial
			Real Estate:
			Other		Commercial
			Construction &		Real Estate:		Commercial
			Land		Farmland &		Real Estate:		Residential:		Residential:
	Commercial		Development		Commercial		Multifamily		First Lien		Junior Lien		Consumer		Foreign		Total
	(Dollars in Thousands)

Balance at June 30,	$	25,140	$	13,249	$	17,472	$	997	$	2,314	$	4,357	$	488	$	902	$	64,919
Losses charged to allowance		(4,249)		(213)		—		—		(16)		(202)		(63)		—		(4,743)
Recoveries credited to allowance		631		17		341		—		—		85		6		5		1,085
Net (losses) recoveries charged to allowance		(3,618)		(196)		341		—		(16)		(117)		(57)		5		(3,658)

Provision charged (credited) to operations		5,473		(1,168)		371		—		817		995		82		21		6,591

Balance at September 30,	$	26,995	$	11,885	$	18,184	$	997	$	3,115	$	5,235	$	513	$	928	$	67,852


	Three Months Ended September 30, 2016
	Domestic														Foreign
			Commercial
			Real Estate:
			Other		Commercial
			Construction &		Real Estate:		Commercial
			Land		Farmland &		Real Estate:		Residential:		Residential:
	Commercial		Development		Commercial		Multifamily		First Lien		Junior Lien		Consumer		Foreign		Total
	(Dollars in Thousands)

Balance at June 30,	$	25,982	$	11,109	$	16,942	$	855	$	2,277	$	3,400	$	532	$	936	$	62,033
Losses charged to allowance		(3,485)		(14)		(497)		—		(27)		—		(124)		(41)		(4,188)
Recoveries credited to allowance		791		6,073		512		—		11		74		11		—		7,472
Net (losses) recoveries charged to allowance		(2,694)		6,059		15		—		(16)		74		(113)		(41)		3,284

Provision charged (credited)to operations		2,602		(4,659)		291		(65)		126		221		98		39		(1,347)

Balance at September 30,	$	25,890	$	12,509	$	17,248	$	790	$	2,387	$	3,695	$	517	$	934	$	63,970


	Nine Months Ended September 30, 2017
	Domestic														Foreign
			Commercial
			Real Estate:
			Other		Commercial
			Construction &		Real Estate:		Commercial
			Land		Farmland &		Real Estate:		Residential:		Residential:
	Commercial		Development		Commercial		Multifamily		First Lien		Junior Lien		Consumer		Foreign		Total
	(Dollars in Thousands)

Balance at December 31,	$	25,649	$	13,889	$	16,731	$	806	$	2,455	$	3,716	$	531	$	884	$	64,661
Losses charged to allowance		(9,248)		(213)		(40)		—		(77)		(340)		(223)		—		(10,141)
Recoveries credited to allowance		3,484		20		488		—		7		182		35		20		4,236
Net (losses) recoveries charged to allowance		(5,764)		(193)		448		—		(70)		(158)		(188)		20		(5,905)

Provision charged (credited) to operations		7,110		(1,811)		1,005		191		730		1,677		170		24		9,096

Balance at September 30,	$	26,995	$	11,885	$	18,184	$	997	$	3,115	$	5,235	$	513	$	928	$	67,852


	Nine Months Ended September 30, 2016
	Domestic														Foreign
			Commercial
			Real Estate:
			Other		Commercial
			Construction &		Real Estate:		Commercial
			Land		Farmland &		Real Estate:		Residential:		Residential:
	Commercial		Development		Commercial		Multifamily		First Lien		Junior Lien		Consumer		Foreign		Total
	(Dollars in Thousands)

Balance at December 31,	$	21,431	$	13,920	$	19,769	$	1,248	$	3,509	$	5,321	$	638	$	1,152	$	66,988
Losses charged to allowance		(27,952)		(16)		(2,387)		(180)		(57)		(324)		(341)		(41)		(31,298)
Recoveries credited to allowance		6,447		6,080		598		—		18		188		53		12		13,396
Net (losses) recoveries charged to allowance		(21,505)		6,064		(1,789)		(180)		(39)		(136)		(288)		(29)		(17,902)

Provision charged (credited) to operations		25,964		(7,475)		(732)		(278)		(1,083)		(1,490)		167		(189)		14,884

Balance at September 30,	$	25,890	$	12,509	$	17,248	$	790	$	2,387	$	3,695	$	517	$	934	$	63,970

The allowance for probable loan losses is a reserve established through a provision for probable loan losses charged to expense, which represents management’s best estimate of probable loan losses when evaluating loans individually or collectively. The decrease in the provision for probable loan losses charged to expense for the nine months ended September 30, 2017 can be attributed to a decrease in the historical loss experience in the commercial category of the calculation. The difference in the provision for probable loan losses charged to expense for the three months ended September 30, 2017 compared to the same period of 2016 can be attributed to a large recovery on a loan charged off in prior years of approximately $6,000,000 and the increase in qualitative factors as discussed below. As discussed in prior periods, charge-offs increased from historical levels due to the deterioration of one relationship that is secured by multiple pieces of transportation equipment beginning in the fourth quarter of 2014. The Company uses a three year historical charge-off experience in the calculation, therefore, as those charge-offs begin to be eliminated from the calculation, the allowance for probable loan losses will be impacted. On August 26, 2017, Hurricane Harvey made landfall in Rockport, Texas as a category four storm and followed the Gulf Coast of Texas north to the Houston metro area and finally the State of Louisiana. The Texas Gulf Coast is an area where the Company serves many consumer and commercial customers. The Company has reviewed the exposure to losses of property arising from the impact of Hurricane Harvey and has determined that the impact is not significant to warrant a specific reserve; however, it is still evaluating the impact, therefore, the Company’s allowance for probable loan losses at September 30, 2017 includes factors in the qualitative ratios used in the calculation to incorporate the potential impact of losses arising from the impact of Hurricane Harvey on certain portions of the loan portfolio. The increase in losses charged to allowance for probable loan losses for the three and nine months ended September 30, 2016 can be attributed to further deterioration in the above identified and charged down relationship primarily secured by multiple pieces of transportation equipment. In March 2016, litigation against the management of the borrower was filed in the State of Nevada, resulting in a going concern issue with the operations of the borrower and the future use of the transportation equipment pledged as collateral on the relationship. As a result, management, in accordance with its credit review procedures, re-evaluated the collateral values on the equipment in light of the new circumstances and reduced the collateral values accordingly, resulting in a further charge-down of the relationship of approximately $16.8 million, which is included in the losses charged to the allowance in the commercial category in the tables detailing the three and nine months ended September 30, 2016 activity. The increase in recoveries for the three and nine months ended September 30, 2016 can be attributed to a large recovery on a loan charged off in prior years and is included in the Commercial Real Estate: Other Construction and Land Development category.

The table below provides additional information on the balance of loans individually or collectively evaluated for impairment and their related allowance, by loan class as of September 30, 2017 and December 31, 2016:


	September 30, 2017
	Loans Individually				Loans Collectively
	Evaluated For				Evaluated For
	Impairment				Impairment
	Recorded				Recorded
	Investment		Allowance		Investment		Allowance
	(Dollars in Thousands)
Domestic
Commercial	$	20,193	$	300	$	1,008,849	$	26,695
Commercial real estate: other construction & land development		2,428		116		1,702,376		11,769
Commercial real estate: farmland & commercial		5,966		18		1,969,876		18,166
Commercial real estate: multifamily		496		—		166,881		997
Residential: first lien		6,651		—		421,204		3,115
Residential: junior lien		762		—		679,754		5,235
Consumer		1,318		—		52,641		513
Foreign		355		—		162,515		928

Total	$	38,169	$	434	$	6,164,096	$	67,418


	December 31, 2016
	Loans Individually				Loans Collectively
	Evaluated For				Evaluated For
	Impairment				Impairment
	Recorded				Recorded
	Investment		Allowance		Investment		Allowance
	(Dollars in Thousands)
Domestic
Commercial	$	22,412	$	—	$	887,255	$	25,649
Commercial real estate: other construction & land development		4,776		371		1,712,099		13,518
Commercial real estate: farmland & commercial		10,810		546		1,932,260		16,185
Commercial real estate: multifamily		552		—		139,914		806
Residential: first lien		6,836		44		415,068		2,411
Residential: junior lien		978		—		609,340		3,716
Consumer		1,295		—		53,873		531
Foreign		746		—		166,474		884

Total	$	48,405	$	961	$	5,916,283	$	63,700

The table below provides additional information on loans accounted for on a non-accrual basis by loan class at September 30, 2017 and December 31, 2016:


	September 30, 2017		December 31, 2016
	(Dollars in Thousands)
Domestic
Commercial	$	20,152	$	22,369
Commercial real estate: other construction & land development		2,428		4,776
Commercial real estate: farmland & commercial		5,966		8,314
Commercial real estate: multifamily		496		552
Residential: first lien		464		655
Residential: junior lien		12		166
Consumer		52		26
Foreign		—		387
Total non-accrual loans	$	29,570	$	37,245

Impaired loans are those loans where it is probable that all amounts due according to contractual terms of the loan agreement will not be collected. The Company has identified these loans through its normal loan review procedures. Impaired loans are measured based on (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the loan’s observable market price; or (iii) the fair value of the collateral if the loan is collateral dependent. Substantially all of the Company’s impaired loans are measured at the fair value of the collateral. In limited cases, the Company may use other methods to determine the level of impairment of a loan if such loan is not collateral dependent.

The following tables detail key information regarding the Company’s impaired loans by loan class at September 30, 2017 and December 31, 2016:


	September 30, 2017
							Quarter to Date				Year to Date
			Unpaid				Average				Average
	Recorded		Principal		Related		Recorded		Interest		Recorded		Interest
	Investment		Balance		Allowance		Investment		Recognized		Investment		Recognized
	(Dollars in Thousands)
Loans with Related Allowance
Domestic
Commercial	$	1,760	$	3,865	$	300	$	2,215	$	—	$	2,439	$	—
Commercial real estate: other construction & land development		148		169		116		149		—		151		—
Commercial real estate: farmland & commercial		500		590		18		500		—		496		—
Total impaired loans with related allowance	$	2,408	$	4,624	$	434	$	2,864	$	—	$	3,086	$	—


	September 30, 2017
					Quarter to Date				Year to Date
			Unpaid		Average				Average
	Recorded		Principal		Recorded		Interest		Recorded		Interest
	Investment		Balance		Investment		Recognized		Investment		Recognized
	(Dollars in Thousands)
Loans with No Related Allowance
Domestic
Commercial	$	18,433	$	45,878	$	18,547	$	1	$	18,931	$	2
Commercial real estate: other construction & land development		2,280		2,397		2,296		—		3,456		—
Commercial real estate: farmland & commercial		5,466		6,235		7,936		21		9,456		79
Commercial real estate: multifamily		496		518		502		—		521		—
Residential: first lien		6,651		6,765		6,733		81		6,903		241
Residential: junior lien		762		774		765		11		975		35
Consumer		1,318		1,319		1,317		2		1,278		2
Foreign		355		355		759		4		753		12
Total impaired loans with no related allowance	$	35,761	$	64,241	$	38,855	$	120	$	42,273	$	371


	December 31, 2016
			Unpaid				Average
	Recorded		Principal		Related		Recorded		Interest
	Investment		Balance		Allowance		Investment		Recognized
	(Dollars in Thousands)
Loans with Related Allowance
Domestic
Commercial real estate: other construction & land development	$	1,958	$	1,971	$	371	$	2,512	$	—
Commercial real estate: farmland & commercial		2,808		3,948		546		3,247		—
Commercial real estate: multifamily		62		62		44		62		—
Total impaired loans with related allowance	$	4,828	$	5,981	$	961	$	5,821	$	—


	December 31, 2016
			Unpaid		Average
	Recorded		Principal		Recorded		Interest
	Investment		Balance		Investment		Recognized
	(Dollars in Thousands)
Loans with No Related Allowance
Domestic
Commercial	$	21,412	$	50,737	$	19,354	$	3
Commercial real estate: other construction & land development		2,818		4,419		2,336		67
Commercial real estate: farmland & commercial		8,002		9,054		8,523		110
Commercial real estate: multifamily		552		562		401		—
Residential: first lien		6,774		6,847		6,860		298
Residential: junior lien		978		1,017		1,011		52
Consumer		1,295		1,295		1,214		1
Foreign		746		746		751		16
Total impaired loans with no related allowance	$	42,577	$	74,677	$	40,450	$	547

The following table details key information regarding the Company’s impaired loans by loan class at September 30, 2016:



	September 30, 2016
	Quarter to Date					Year to Date
	Average				Average
	Recorded		Interest		Recorded		Interest
	Investment		Recognized		Investment		Recognized
	(Dollars in Thousands)
Loans with Related Allowance
Domestic
Commercial	$	2,247	$	—	$	3,239	$	—
Commercial real estate: other construction & land development		159		—		162		—
Commercial real estate: farmland & commercial		5,036		24		5,639		73
Total impaired loans with related allowance	$	7,442	$	24	$	9,040	$	73


	September 30, 2016
	Quarter to Date				Year to Date
	Average				Average
	Recorded		Interest		Recorded		Interest
	Investment		Recognized		Investment		Recognized
	(Dollars in Thousands)
Loans with No Related Allowance
Domestic
Commercial	$	13,813	$	1	$	15,234	$	3
Commercial real estate: other construction & land development		3,924		14		4,927		53
Commercial real estate: farmland & commercial		5,513		3		6,469		10
Commercial real estate: multifamily		577		—		349		—
Residential: first lien		6,712		75		6,644		220
Residential: junior lien		1,012		12		1,011		39
Consumer		1,229		—		1,191		1
Foreign		752		4		752		12
Total impaired loans with no related allowance	$	33,532	$	109	$	36,577	$	338

A portion of the impaired loans have adequate collateral and credit enhancements not requiring a related allowance for loan loss, and management of the Company recognizes the risks associated with these impaired loans, however, management is confident the Company’s loss exposure regarding these credits will be significantly reduced due to the Company’s long-standing practices that emphasize secured lending with strong collateral positions and guarantor support. Management is likewise confident the reserve for probable loan losses is adequate. The Company has no direct exposure to sub-prime loans in its loan portfolio, but the sub-prime crisis has affected the credit markets on a national level, and as a result, the Company has experienced an increasing amount of impaired loans; however, management’s decision to place loans in this category does not necessarily mean that the Company will experience significant losses from these loans or significant increases in impaired loans from these levels.

The following table details loans accounted for as “troubled debt restructuring,” segregated by loan class. Loans accounted for as troubled debt restructuring are included in impaired loans.


	September 30, 2017		December 31, 2016
		(Dollars in Thousands)
Domestic
Commercial	$	9,072	$	10,710
Commercial real estate: farmland & commercial		590		3,086
Residential: first lien		6,187		6,181
Residential: junior lien		750		812
Consumer		1,266		1,269
Foreign		355		360

Total troubled debt restructuring	$	18,220	$	22,418

The bank subsidiaries charge off that portion of any loan which management considers to represent a loss as well as that portion of any other loan which is classified as a “loss” by bank examiners. Commercial and industrial or real estate loans are generally considered by management to represent a loss, in whole or part, when an exposure beyond any collateral coverage is apparent and when no further collection of the loss portion is anticipated based on the borrower’s financial condition and general economic conditions in the borrower’s industry. Generally, unsecured consumer loans are charged-off when 90 days past due.

While management of the Company believes that it is generally able to identify borrowers with financial problems reasonably early and to monitor credit extended to such borrowers carefully, there is no precise method of predicting loan losses. The determination that a loan is likely to be uncollectible and that it should be wholly or partially charged-off as a loss is an exercise of judgment. Similarly, the determination of the adequacy of the allowance for probable loan losses can be made only on a subjective basis. It is the judgment of the Company’s management that the allowance for probable loan losses at September 30, 2017 was adequate to absorb probable losses from loans in the portfolio at that date.

The following tables present information regarding the aging of past due loans by loan class at September 30, 2017 and December 31, 2016:


	September 30, 2017
							90 Days or		Total
	30 - 59		60 - 89		90 Days or		greater &		Past				Total
	Days		Days		Greater		still accruing		Due		Current		Portfolio
	(Dollars in Thousands)
Domestic
Commercial	$	3,604	$	352	$	20,248	$	706	$	24,204	$	1,004,837	$	1,029,041
Commercial real estate: other construction & land development		444		—		864		49		1,308		1,703,496		1,704,804
Commercial real estate: farmland & commercial		9,117		29,568		4,062		676		42,747		1,933,095		1,975,842
Commercial real estate: multifamily		149		—		496		—		645		166,732		167,377
Residential: first lien		3,161		964		4,651		4,382		8,776		419,079		427,855
Residential: junior lien		1,369		420		682		682		2,471		678,045		680,516
Consumer		713		124		553		523		1,390		52,569		53,959
Foreign		1,468		267		262		262		1,997		160,873		162,870
Total past due loans	$	20,025	$	31,695	$	31,818	$	7,280	$	83,538	$	6,118,726	$	6,202,264


	December 31, 2016
							90 Days or		Total
	30 - 59		60 - 89		90 Days or		greater &		Past				Total
	Days		Days		Greater		still accruing		Due		Current		Portfolio
		(Dollars in Thousands)
Domestic
Commercial	$	4,081	$	829	$	21,123	$	392	$	26,033	$	883,634	$	909,667
Commercial real estate: other construction & land development		1,502		396		4,456		9		6,354		1,710,521		1,716,875
Commercial real estate: farmland & commercial		3,454		3,054		6,150		289		12,658		1,930,412		1,943,070
Commercial real estate: multifamily		44		—		552		—		596		139,870		140,466
Residential: first lien		5,615		1,350		4,143		3,756		11,108		410,796		421,904
Residential: junior lien		762		178		540		382		1,480		608,838		610,318
Consumer		910		95		413		387		1,418		53,750		55,168
Foreign		931		425		397		11		1,753		165,467		167,220
Total past due loans	$	17,299	$	6,327	$	37,774	$	5,226	$	61,400	$	5,903,288	$	5,964,688

The increase in past due loans in the 30 – 59 day category at September 30, 2017 compared to December 31, 2016 can be primarily attributed to a commercial real estate transction involving a relationship that is secured by a retail building. The increase in the 60 – 89 day category for the same period can be attributed to a relationship that is secured by a water park that is currently classified as Substandard. The Company’s internal classified report is segregated into the following categories: (i) “Special Review Credits,” (ii) “Watch List-Pass Credits,” and (iii) “Watch List-Substandard Credits.” The loans placed in the “Special Review Credits” category reflect management’s opinion that the loans reflect potential weakness which requires monitoring on a more frequent basis. The “Special Review Credits” are reviewed and discussed on a regular basis with the credit department and the lending staff to determine if a change in category is warranted. The loans placed in the “Watch List-Pass Credits” category reflect the Company’s opinion that the credit contains weaknesses which represent a greater degree of risk, which warrant “extra attention.” The “Watch List-Pass Credits” are reviewed and discussed on a regular basis with the credit department and the lending staff to determine if a change in category is warranted. The loans placed in the “Watch List-Substandard Credits” classification are considered to be potentially inadequately protected by the current sound worth and debt service capacity of the borrower or of any pledged collateral. These credit obligations, even if apparently protected by collateral value, have shown defined weaknesses related to adverse financial, managerial, economic, market or political conditions which may jeopardize repayment of principal and interest. Furthermore, there is the possibility that some future loss could be sustained by the Company if such weaknesses are not corrected. For loans that are classified as impaired, management evaluates these credits in accordance with the provisions of ASC 310-10, “Receivables,” and, if deemed necessary, a specific reserve is allocated to the credit. The specific reserve allocated under ASC 310-10 is based on (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the loan’s observable market price; or (iii) the fair value of the collateral if the loan is collateral dependent. Substantially all of the Company’s loans evaluated as impaired under ASC 310-10 are measured using the fair value of collateral method. In limited cases, the Company may use other methods to determine the specific reserve of a loan under ASC 310-10 if such loan is not collateral dependent.

The allowance based on historical loss experience on the Company’s remaining loan portfolio, which includes the “Special Review Credits,” “Watch List - Pass Credits,” and “Watch List - Substandard Credits” is determined by segregating the remaining loan portfolio into certain categories such as commercial loans, installment loans, international loans, loan concentrations and overdrafts. Installment loans are then further segregated by number of days past due. A historical loss percentage, adjusted for (i) management’s evaluation of changes in lending policies and procedures, (ii) current economic conditions in the market area served by the Company, (iii) other risk factors, (iv) the effectiveness of the internal loan review function, (v) changes in loan portfolios, and (vi) the composition and concentration of credit volume is applied to each category. Each category is then added together to determine the allowance allocated under ASC 450-20.

A summary of the loan portfolio by credit quality indicator by loan class at September 30, 2017 and December 31, 2016 is as follows:


			September 30, 2017
			Special		Watch		Watch List—		Watch List—
	Pass		Review		List—Pass		Substandard		Impaired
			(Dollars in Thousands)
Domestic
Commercial	$	855,329	$	52	$	3,128	$	150,339	$	20,193
Commercial real estate: other construction & land development		1,638,432		912		—		63,032		2,428
Commercial real estate: farmland & commercial		1,799,806		10,608		36,800		122,662		5,966
Commercial real estate: multifamily		166,881		—		—		—		496
Residential: first lien		420,606		41		—		557		6,651
Residential: junior lien		679,604		150		—		—		762
Consumer		52,641		—		—		—		1,318
Foreign		162,515		—		—		—		355
Total	$	5,775,814	$	11,763	$	39,928	$	336,590	$	38,169


			December 31, 2016
			Special		Watch		Watch List—		Watch List—
	Pass		Review		List—Pass		Substandard		Impaired
			(Dollars in Thousands)
Domestic
Commercial	$	720,350	$	90,746	$	1,121	$	75,038	$	22,412
Commercial real estate: other construction & land development		1,648,633		1,986		—		61,480		4,776
Commercial real estate: farmland & commercial		1,792,542		7,983		59,872		71,863		10,810
Commercial real estate: multifamily		139,914		—		—		—		552
Residential: first lien		413,638		814		—		616		6,836
Residential: junior lien		609,190		150		—		—		978
Consumer		53,873		—		—		—		1,295
Foreign		166,474		—		—		—		746
Total	$	5,544,614	$	101,679	$	60,993	$	208,997	$	48,405

The decrease in Special Review credits for September 30, 2017 compared to December 31, 2016 can be primarily attributed to the reclassification of a relationship secured by barges used in the transportation of petroleum products from Special Review to Substandard and by the reclassification of a relationship secured by equipment used in oil and gas production from the Special Review to the Pass category. The increase in Watch-List Substandard Credits for September 30, 2017 compared to December 31, 2016 can be primarily attributed to the relationship mentioned above, in addition to the reclassification of three additional relationships from Pass to Watch-List Substandard. One such relationship is in the oil and gas production business, one is in the water park business and is secured by a water park and related hotel, and one is secured by construction equipment. Additionally, there was an increase in the outstanding balance on a relationship primarily secured by transportation equipment, which was already classified as Substandard at December 31, 2016.