The Company’s

non-accrual

loans, loans still accruing and past due 90 days or more and restructured loans are as follows (in thousands):


	March 31,				December 31,
	2020		2019		2019
Non-accrual loans*	$	39,226	$	28,508	$	24,582
Loans still accruing and past due 90 days or more		209		97		153
Troubled debt restructured loans**		26		472		26

Total	$	39,461	$	29,077	$	24,761

*	Includes $7,773,000, $859,000 and $251,000 of purchased credit impaired loans as of March 31, 2020 and 2019, and December 31, 2019, respectively.

**	Troubled debt restructured loans of $4,733,000, $4,566,000 and $4,791,000, whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in non-accrual loans at March 31, 2020 and 2019, and December 31, 2019, respectively.

The Company’s recorded investment in impaired loans and the related valuation allowance are as follows (in thousands):


March 31, 2020				March 31, 2019				December 31, 2019
Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance
Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance
$	39,226	$	3,386	$	28,508	$	4,472	$	24,582	$	3,228

The Company had $40,444,000, $29,724,000 and $25,770,000 in

non-accrual,

past due 90 days or more and still accruing, restructured loans and foreclosed assets at March 31, 2020 and 2019, and December 31, 2019, respectively. Non-accrual loans at March 31, 2020 and 2019, and December 31, 2019, consisted of the following by class of financing receivables (in thousands):


	March 31,				December 31,
	2020		2019		2019
Commercial	$	5,620	$	8,897	$	3,093
Agricultural		1,128		831		1,376
Real Estate		32,156		18,254		19,787
Consumer		322		526		326

Total	$	39,226	$	28,508	$	24,582

No significant additional funds are committed to be advanced in connection with impaired loans as of March 31, 2020.

The Company’s impaired loans and related allowance are summarized in the following table as of March 31, 2020 and 2019 and December 31, 2019 by class of financing receivables (in thousands). No interest income was recognized on impaired loans subsequent to their classification as impaired.


March 31, 2020	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Three- Month Average Recorded Investment
Commercial	$	7,300	$	992	$	4,628	$	5,620	$	1,271	$	6,409
Agricultural		1,340		632		496		1,128		98		1,200
Real Estate		44,208		9,496		22,660		32,156		2,016		36,683
Consumer		436		—		322		322		1		342

Total	$	53,284	$	11,120	$	28,106	$	39,226	$	3,386	$	44,634

*	Includes $7,773,000 of purchased credit impaired loans.


March 31, 2019	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Three- Month Average Recorded Investment
Commercial	$	10,227	$	6,129	$	2,768	$	8,897	$	1,184	$	9,292
Agricultural		892		179		652		831		130		859
Real Estate		26,528		6,444		11,810		18,254		2,901		19,268
Consumer		689		27		499		526		257		577

Total	$	38,336	$	12,779	$	15,729	$	28,508	$	4,472	$	29,996

*	Includes $859,000 of purchased credit impaired loans.


December 31, 2019	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Three- Month Average Recorded Investment
Commercial	$	4,511	$	630	$	2,463	$	3,093	$	1,042	$	3,488
Agricultural		1,603		658		718		1,376		235		1,644
Real Estate		27,366		7,081		12,706		19,787		1,950		21,726
Consumer		469		—		326		326		1		449

Total	$	33,949	$	8,369	$	16,213	$	24,582	$	3,228	$	27,307

*	Includes 251,000 of purchased credit impaired loans.

The Company recognized interest income on impaired loans prior to being recognized as impaired of approximately $750,000 during the year ended December 31, 2019. Such amounts for the three-month periods ended March 31, 2020 and 2019 were not significant.

From a credit risk standpoint, the Company rates its loans in one of four categories: (i) pass, (ii) special mention, (iii) substandard or (iv) doubtful. Loans rated as loss are

charged-off.

The ratings of loans reflect a judgment about the risks of default and loss associated with the loan. The Company reviews the ratings on our credits as part of our

on-going

monitoring of the credit quality of our loan portfolio. Ratings are adjusted to reflect the degree of risk and loss that are felt to be inherent in each credit as of each reporting period. Our methodology is structured so that specific allocations are increased in accordance with deterioration in credit quality (and a corresponding increase in risk and loss) or decreased in accordance with improvement in credit quality (and a corresponding decrease in risk and loss).

Credits rated special mention show clear signs of financial weaknesses or deterioration in credit worthiness, however, such concerns are not so pronounced that the Company generally expects to experience significant loss within the short-term. Such credits typically maintain the ability to perform within standard credit terms and credit exposure is not as prominent as credits rated more harshly.

Credits rated substandard are those in which the normal repayment of principal and interest may be, or has been, jeopardized by reason of adverse trends or developments of a financial, managerial, economic or political nature, or important weaknesses exist in collateral. A protracted workout on these credits is a distinct possibility. Prompt corrective action is therefore required to strengthen the Company’s position, and/or to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed.

Credits rated doubtful are those in which full collection of principal appears highly questionable, and which some degree of loss is anticipated, even though the ultimate amount of loss may not yet be certain and/or other factors exist which could affect collection of debt. Based upon available information, positive action by the Company is required to avert or minimize loss. Credits rated doubtful are generally also placed on

non-accrual.

The following summarizes the Company’s internal ratings of its loans

held-for-investment

by class of financing receivables and portfolio segments, which are the same (in thousands):


March 31, 2020	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	831,385	$	25,390	$	12,675	$	—	$	869,450
Agricultural		92,447		5,270		1,865		—		99,582
Real Estate		3,106,100		56,114		87,035		—		3,249,249
Consumer		419,109		325		1,674		—		421,108

Total	$	4,449,041	$	87,099	$	103,249	$	—	$	4,639,389


March 31, 2019	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	787,651	$	23,182	$	16,053	$	—	$	826,886
Agricultural		87,151		20		4,165		—		91,336
Real Estate		2,611,139		21,827		51,241		—		2,684,207
Consumer		384,786		246		1,699		—		386,731

Total	$	3,870,727	$	45,275	$	73,158	$	—	$	3,989,160


December 31, 2019	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	825,775	$	20,971	$	9,580	$	—	$	856,326
Agricultural		101,614		64		1,962		—		103,640
Real Estate		2,717,227		42,036		64,109		—		2,823,372
Consumer		409,698		300		1,633		—		411,631

Total	$	4,054,314	$	63,371	$	77,284	$	—	$	4,194,969

The Company’s past due loans are as follows (in thousands):


March 31, 2020	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans		90 Days Past Due Still Accruing
Commercial	$	4,807	$	388	$	382	$	5,577	$	863,873	$	869,450	$	116
Agricultural		621		—		62		683		98,899		99,582		—
Real Estate		25,788		742		413		26,943		3,222,306		3,249,249		—
Consumer		862		116		102		1,080		420,028		421,108		93

Total	$	32,078	$	1,246	$	959	$	34,283	$	4,605,106	$	4,639,389	$	209


March 31, 2019	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans		90 Days Past Due Still Accruing
Commercial	$	4,123	$	239	$	885	$	5,247	$	821,639	$	826,886	$	63
Agricultural		323		17		—		340		90,996		91,336		—
Real Estate		15,649		671		1,541		17,861		2,666,346		2,684,207		8
Consumer		1,003		96		26		1,125		385,606		386,731		26

Total	$	21,098	$	1,023	$	2,452	$	24,573	$	3,964,587	$	3,989,160	$	97


December 31, 2019	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans		90 Days Past Due Still Accruing
Commercial	$	3,257	$	557	$	722	$	4,536	$	851,790	$	856,326	$	112
Agricultural		183		44		400		627		103,013		103,640		—
Real Estate		12,890		288		195		13,373		2,809,999		2,823,372		—
Consumer		572		151		45		768		410,863		411,631		41

Total	$	16,902	$	1,040	$	1,362	$	19,304	$	4,175,665	$	4,194,969	$	153

*	The Company monitors commercial, agricultural and real estate loans after such loans are 15 days past due. Consumer loans are monitored after such loans are 30 days past due.

The following table details the allowance for loan losses by portfolio segment (in thousands). There were no allowances for purchased credit impaired loans at March 31, 2020 and 2019, and December 31, 2019. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.


March 31, 2020	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,271	$	98	$	2,016	$	1	$	3,386
Loans collectively evaluated for impairment		10,502		2,056		39,240		5,256		57,054

Total	$	11,773	$	2,154	$	41,256	$	5,257	$	60,440


March 31, 2019	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,184	$	130	$	2,901	$	257	$	4,472
Loans collectively evaluated for impairment		11,291		1,300		28,986		5,536		47,113

Total	$	12,475	$	1,430	$	31,887	$	5,793	$	51,585


December 31, 2019	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,042	$	235	$	1,950	$	1	$	3,228
Loans collectively evaluated for impairment		11,080		971		32,024		5,196		49,271

Total	$	12,122	$	1,206	$	33,974	$	5,197	$	52,499

Changes in the allowance for loan losses are summarized as follows by portfolio segment (in thousands):


Three months ended March 31, 2020	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	12,122		$	1,206		$	33,974		$	5,197		$	52,499
Provision for loan losses		794			949			7,921			186			9,850
Recoveries		149			1			76			92			318
Charge-offs		(1,292	)		(2	)		(715	)		(218	)		(2,227	)

Ending balance	$	11,773		$	2,154		$	41,256		$	5,257		$	60,440


Three months ended March 31, 2019	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	11,948		$	1,446		$	32,342		$	5,466		$	51,202
Provision for loan losses		196			(19	)		397			391			965
Recoveries		649			3			89			141			882
Charge-offs		(318	)		—			(941	)		(205	)		(1,464	)

Ending balance	$	12,475		$	1,430		$	31,887		$	5,793		$	51,585

The Company’s recorded investment in loans related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology is as follows (in thousands). Purchased credit impaired loans of $7,773,000, $859,000 and $251,000 at March 31, 2020 and 2019, and December 31, 2019, respectively, are included in loans individually evaluated for impairment.


March 31, 2020	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	5,620	$	1,128	$	32,156	$	322	$	39,226
Loans collectively evaluated for impairment		863,830		98,454		3,217,093		420,786		4,600,163

Total	$	869,450	$	99,582	$	3,249,249	$	421,108	$	4,639,389


March 31, 2019	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	8,897	$	831	$	18,254	$	526	$	28,508
Loans collectively evaluated for impairment		817,989		90,505		2,665,953		386,205		3,960,652

Total	$	826,886	$	91,336	$	2,684,207	$	386,731	$	3,989,160


December 31, 2019	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	3,093	$	1,376	$	19,787	$	326	$	24,582
Loans collectively evaluated for impairment		853,233		102,264		2,803,585		411,305		4,170,387

Total	$	856,326	$	103,640	$	2,823,372	$	411,631	$	4,194,969

The Company’s loans that were modified and considered troubled debt restructurings are as follows (in thousands):


	Three Months Ended March 31, 2020						Three Months Ended March 31, 2019
	Number		Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number		Pre- Modification Recorded Investment		Post- Modification Recorded Investment
Commercial		5	$	288	$	288		1	$	157	$	157
Agricultural		1		134		134		8		367		367
Real Estate		—		—		—		4		649		649
Consumer		1		14		14		—		—		—

Total		7	$	436	$	436		13	$	1,173	$	1,173

The balances below provide information as to how the loans were modified as troubled debt restructured loans (in thousands):


	Three Months Ended March 31, 2020						Three Months Ended March 31, 2019
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	260	$	28	$	—	$	157	$	—
Agricultural		—		134		—		—		102		265
Real Estate		—		—		—		—		201		448
Consumer		—		14		—		—		—		—

Total	$	—	$	408	$	28	$	—	$	460	$	713

During the three months ended March 31, 2020 and 2019, no loans were modified as a troubled debt restructured loan within the previous 12 months and for which there was a payment default. A default for purposes of this disclosure is a troubled debt restructured loan in which the borrower is 90 days past due or more or results in the foreclosure and repossession of the applicable collateral.

As of March 31, 2020, the Company has no commitments to lend additional funds to loan customers whose terms have been modified in troubled debt restructurings.

As discussed in note 1 to these financial statements, the CARES Act provided banks an option to elect to not account for certain loan modifications related to

COVID-19

as troubled debt restructurings as long as the borrowers were not more than 30 days past due as of December 31, 2019. The above disclosed troubled debt restructurings were not related to

COVID-19

modifications.

Our subsidiary bank has established a line of credit with the Federal Home Loan Bank of Dallas (FHLB) to provide liquidity and meet pledging requirements for those customers eligible to have securities pledged to secure certain uninsured deposits. At March 31, 2020, $2,717,982,000 in loans held by our bank subsidiary were subject to blanket liens as security for this line of credit. At March 31, 2020, there was $446,000,000 outstanding under this line of credit.