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Loans and Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2019
Loans and Leases Receivable Disclosure [Abstract]  
Loans and Allowance for Credit Losses Loans and Allowance for Credit Losses
The following table provides outstanding balances related to each of our loan types as of December 31:
 
2019
 
2018
 
Originated Loans
 
Acquired Loans
 
Total Loans
 
Originated Loans
 
Acquired Loans
 
Total Loans
 
(dollars in thousands)
Commercial, financial, agricultural and other
$
1,212,026

 
$
29,827

 
$
1,241,853

 
$
1,100,947

 
$
37,526

 
$
1,138,473

Real estate construction
442,777

 
6,262

 
449,039

 
353,008

 
5,970

 
358,978

Residential real estate
1,415,808

 
265,554

 
1,681,362

 
1,313,645

 
248,760

 
1,562,405

Commercial real estate
1,958,346

 
159,173

 
2,117,519

 
1,922,349

 
201,195

 
2,123,544

Loans to individuals
685,416

 
13,959

 
699,375

 
585,347

 
5,392

 
590,739

Total loans
$
5,714,373

 
$
474,775

 
$
6,189,148

 
$
5,275,296

 
$
498,843

 
$
5,774,139


Credit Quality Information
As part of the on-going monitoring of credit quality within the loan portfolio, the following credit worthiness categories are used in grading our commercial loans:
Pass
 
Acceptable levels of risk exist in the relationship. Includes all loans not classified as OAEM, substandard or doubtful.
 
 
 
Other Assets Especially Mentioned (OAEM)

 
Potential weaknesses that deserve management’s close attention. The potential weaknesses may result in deterioration of the repayment prospects or weaken the Bank’s credit position at some future date. The credit risk may be relatively minor, yet constitute an undesirable risk in light of the circumstances surrounding the specific credit. No loss of principal or interest is expected.
 
 
 
Substandard
 
Well-defined weakness or a weakness that jeopardizes the repayment of the debt. A loan may be classified as substandard as a result of deterioration of the borrower’s financial condition and repayment capacity. Loans for which repayment plans have not been met or collateral equity margins do not protect the Company may also be classified as substandard.
 
 
 
Doubtful
 
Loans with the characteristics of substandard loans with the added characteristic that collection or liquidation in full, on the basis of presently existing facts and conditions, is highly improbable.
The use of creditworthiness categories to grade commercial loans permits management’s use of migration analysis to estimate a portion of credit risk. The Company’s internal creditworthiness grading system provides a measurement of credit risk based primarily on an evaluation of the borrower’s cash flow and collateral. Movements between these rating categories provide a
predictive measure of credit losses and therefore assists in determining the appropriate level for the loan loss reserves. Category ratings are reviewed each quarter, at which time management analyzes the results, as well as other external statistics and factors related to loan performance. Loans that migrate towards higher risk rating levels generally have an increased risk of default, whereas loans that migrate toward lower risk ratings generally will result in a lower risk factor being applied to those related loan balances.
The following tables represent our credit risk profile by creditworthiness category for the years ended December 31:
 
2019
 
Commercial, financial, agricultural and other
 
Real estate construction
 
Residential real estate
 
Commercial real estate
 
Loans to individuals
 
Total
 
(dollars in thousands)
Originated Loans
 
 
 
 
 
 
 
 
 
 
 
Pass
$
1,171,363

 
$
442,751

 
$
1,406,845

 
$
1,918,690

 
$
685,108

 
$
5,624,757

Non-Pass
 
 
 
 
 
 
 
 
 
 
 
OAEM
29,359

 
26

 
475

 
13,533

 
—

 
43,393

Substandard
11,304

 
—

 
8,488

 
26,123

 
308

 
46,223

Doubtful
—

 
—

 
—

 
—

 
—

 
—

Total Non-Pass
40,663

 
26

 
8,963

 
39,656

 
308

 
89,616

Total
$
1,212,026

 
$
442,777

 
$
1,415,808

 
$
1,958,346

 
$
685,416

 
$
5,714,373

 
 
 
 
 
 
 
 
 
 
 
 
Acquired Loans
 
 
 
 
 
 
 
 
 
 
 
Pass
$
27,696

 
$
5,697

 
$
262,630

 
$
153,814

 
$
13,947

 
$
463,784

Non-Pass
 
 
 
 
 
 
 
 
 
 
 
OAEM
2,009

 
565

 
537

 
2,072

 
—

 
5,183

Substandard
122

 
—

 
2,387

 
3,287

 
12

 
5,808

Doubtful
—

 
—

 
—

 
—

 
—

 
—

Total Non-Pass
2,131

 
565

 
2,924

 
5,359

 
12

 
10,991

Total
$
29,827

 
$
6,262

 
$
265,554

 
$
159,173

 
$
13,959

 
$
474,775

 
2018
 
Commercial, financial, agricultural and other
 
Real estate construction
 
Residential real estate
 
Commercial real estate
 
Loans to individuals
 
Total
 
(dollars in thousands)
Originated Loans
 
 
 
 
 
 
 
 
 
 
 
Pass
$
1,055,394

 
$
337,367

 
$
1,302,912

 
$
1,880,139

 
$
585,141

 
$
5,160,953

Non-Pass
 
 
 
 
 
 
 
 
 
 
 
OAEM
33,723

 
15,641

 
1,026

 
28,904

 
—

 
79,294

Substandard
11,830

 
—

 
9,707

 
13,306

 
206

 
35,049

Doubtful
—

 
—

 
—

 
—

 
—

 
—

Total Non-Pass
45,553

 
15,641

 
10,733

 
42,210

 
206

 
114,343

Total
$
1,100,947

 
$
353,008

 
$
1,313,645

 
$
1,922,349

 
$
585,347

 
$
5,275,296

 
 
 
 
 
 
 
 
 
 
 
 
Acquired Loans
 
 
 
 
 
 
 
 
 
 
 
Pass
$
31,399

 
$
5,337

 
$
245,637

 
$
198,201

 
$
5,377

 
$
485,951

Non-Pass
 
 
 
 
 
 
 
 
 
 
 
OAEM
5,890

 
633

 
736

 
441

 
—

 
7,700

Substandard
237

 
—

 
2,387

 
2,553

 
15

 
5,192

Doubtful
—

 
—

 
—

 
—

 
—

 
—

Total Non-Pass
6,127

 
633

 
3,123

 
2,994

 
15

 
12,892

Total
$
37,526

 
$
5,970

 
$
248,760

 
$
201,195

 
$
5,392

 
$
498,843


Portfolio Risks
The credit quality of our loan portfolio can potentially represent significant risk to our earnings, capital and liquidity. First Commonwealth devotes a substantial amount of resources managing this risk primarily through our credit administration department that develops and administers policies and procedures for underwriting, maintaining, monitoring and collecting loans. Credit administration is independent of lending departments and oversight is provided by the credit committee of the First Commonwealth Board of Directors.
Total gross charge-offs for the years ended December 31, 2019 and 2018 were $12.3 million and $15.1 million, respectively.
Criticized loans have been evaluated when determining the appropriateness of the allowance for credit losses, which we believe is appropriate to absorb losses inherent to the portfolio as of December 31, 2019. However, changes in economic conditions, interest rates, borrower financial condition, delinquency trends or previously established fair values of collateral factors could significantly change those judgmental estimates.
Age Analysis of Past Due Loans by Segment
The following tables delineate the aging analysis of the recorded investments in past due loans as of December 31. Also included in these tables are loans that are 90 days or more past due and still accruing because they are well-secured and in the process of collection.
 
2019
 
30 - 59
days
past due
 
60 - 89
days
past
due
 
90 days
and
greater
and still
accruing
 
Nonaccrual
 
Total past
due and
nonaccrual
 
Current
 
Total
 
(dollars in thousands)
Originated Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural and other
$
391

 
$
57

 
$
140

 
$
8,780

 
$
9,368

 
$
1,202,658

 
$
1,212,026

Real estate construction
198

 
—

 
9

 
—

 
207

 
442,570

 
442,777

Residential real estate
3,757

 
749

 
736

 
6,646

 
11,888

 
1,403,920

 
1,415,808

Commercial real estate
227

 
114

 
—

 
6,609

 
6,950

 
1,951,396

 
1,958,346

Loans to individuals
4,070

 
1,020

 
931

 
307

 
6,328

 
679,088

 
685,416

Total
$
8,643

 
$
1,940

 
$
1,816

 
$
22,342

 
$
34,741

 
$
5,679,632

 
$
5,714,373

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquired Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural and other
$
1

 
$
—

 
$
1

 
$
74

 
$
76

 
$
29,751

 
$
29,827

Real estate construction
—

 
—

 
—

 
—

 
—

 
6,262

 
6,262

Residential real estate
304

 
207

 
221

 
1,949

 
2,681

 
262,873

 
265,554

Commercial real estate
—

 
107

 
—

 
298

 
405

 
158,768

 
159,173

Loans to individuals
87

 
89

 
35

 
12

 
223

 
13,736

 
13,959

Total
$
392

 
$
403

 
$
257

 
$
2,333

 
$
3,385

 
$
471,390

 
$
474,775

 
2018
 
30 - 59
days
past due
 
60 - 89
days
past
due
 
90 days
and
greater
and still
accruing
 
Nonaccrual
 
Total past
due and
nonaccrual
 
Current
 
Total
 
(dollars in thousands)
Originated Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural and other
$
130

 
$
247

 
$
92

 
$
10,223

 
$
10,692

 
$
1,090,255

 
$
1,100,947

Real estate construction
212

 
—

 
—

 
—

 
212

 
352,796

 
353,008

Residential real estate
3,697

 
710

 
790

 
6,238

 
11,435

 
1,302,210

 
1,313,645

Commercial real estate
492

 
69

 
—

 
3,437

 
3,998

 
1,918,351

 
1,922,349

Loans to individuals
2,362

 
532

 
662

 
207

 
3,763

 
581,584

 
585,347

Total
$
6,893

 
$
1,558

 
$
1,544

 
$
20,105

 
$
30,100

 
$
5,245,196

 
$
5,275,296

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquired Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural and other
$
1

 
$
—

 
$
—

 
$
204

 
$
205

 
$
37,321

 
$
37,526

Real estate construction
—

 
—

 
—

 
—

 
—

 
5,970

 
5,970

Residential real estate
226

 
24

 
27

 
1,904

 
2,181

 
246,579

 
248,760

Commercial real estate
—

 
—

 
—

 
1,042

 
1,042

 
200,153

 
201,195

Loans to individuals
46

 
12

 
11

 
15

 
84

 
5,308

 
5,392

Total
$
273

 
$
36

 
$
38

 
$
3,165

 
$
3,512

 
$
495,331

 
$
498,843


Nonaccrual Loans
The previous tables summarize nonaccrual loans by loan segment. The Company generally places loans on nonaccrual status when the full and timely collection of interest or principal becomes uncertain, when part of the principal balance has been charged off and no restructuring has occurred, or the loans reach a certain number of days past due. Generally, loans 90 days or
more past due are placed on nonaccrual status, except for consumer loans which are placed in nonaccrual status at 150 days past due.
When a loan is placed on nonaccrual, the accrued unpaid interest receivable is reversed against interest income and all future payments received are applied as a reduction to the loan principal. Generally, the loan is returned to accrual status when (a) all delinquent interest and principal become current under the terms of the loan agreement or (b) the loan is both well-secured and in the process of collection and collectability is no longer in doubt.
Impaired Loans
Management considers loans to be impaired when, based on current information and events, it is determined that the Company will not be able to collect all amounts due according to the loan contract, including scheduled interest payments. Determination of impairment is treated the same across all loan categories. When management identifies a loan as impaired, the impairment is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the sole source or repayment for the loan is the operation or liquidation of collateral. When the loan is collateral dependent, the appraised value less estimated cost to sell is utilized. If management determines the value of the impaired loan is less than the recorded investment in the loan, impairment is recognized through an allowance estimate or a charge-off to the allowance. Troubled debt restructured loans on accrual status are considered to be impaired loans.
When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal, under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan is not in doubt and the loan is on nonaccrual status, contractual interest is credited to interest income when received under the cash basis method.
There were no impaired loans held for sale at December 31, 2019 and December 31, 2018. Total gains of $0.4 million, $1.8 million and $21 thousand were recognized on sales of impaired loans during the years ended December 31, 2019, 2018, and 2017 respectively.

The following tables include the recorded investment and unpaid principal balance for impaired loans with the associated allowance amount, if applicable, as of December 31, 2019 and 2018. Also presented are the average recorded investment in impaired loans and the related amount of interest recognized while the loan was considered impaired for the years ended December 31, 2019, 2018 and 2017. Average balances are calculated based on month-end balances of the loans for the period reported and are included in the table below based on its period end allowance position.
 
2019
 
Recorded
investment
 
Unpaid
principal
balance
 
Related
specific
allowance
 
Average
recorded
investment
 
Interest
Income
Recognized
 
(dollars in thousands)
Originated Loans:
 
 
 
 
 
 
 
 
 
With no related specific allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural and other
$
1,848

 
$
6,997

 
 
 
$
2,411

 
$
66

Real estate construction
—

 
—

 
 
 
—

 
—

Residential real estate
10,372

 
12,437

 
 
 
10,819

 
365

Commercial real estate
3,015

 
3,210

 
 
 
7,455

 
156

Loans to individuals
406

 
640

 
 
 
371

 
17

Subtotal
15,641

 
23,284

 
 
 
21,056

 
604

With a specific allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural and other
8,290

 
10,032

 
$
1,580

 
4,110

 
77

Real estate construction
—

 
—

 
—

 
—

 
—

Residential real estate
474

 
498

 
1

 
241

 
—

Commercial real estate
5,293

 
5,308

 
851

 
1,747

 
3

Loans to individuals
—

 
—

 
—

 
—

 
—

Subtotal
14,057

 
15,838

 
2,432

 
6,098

 
80

Total
$
29,698

 
$
39,122

 
$
2,432

 
$
27,154

 
$
684

Acquired Loans:
 
 
 
 
 
 
 
 
 
With no related specific allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural and other
$
73

 
$
73

 
 
 
$
2,479

 
$
—

Real estate construction
—

 
—

 
 
 
—

 
—

Residential real estate
2,136

 
2,585

 
 
 
1,986

 
8

Commercial real estate
298

 
320

 
 
 
747

 
18

Loans to individuals
12

 
15

 
 
 
13

 
—

Subtotal
2,519

 
2,993

 
 
 
5,225

 
26

With a specific allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural and other
—

 
—

 
$
—

 
—

 
—

Real estate construction
—

 
—

 
—

 
—

 
—

Residential real estate
—

 
—

 
—

 
—

 
—

Commercial real estate
—

 
—

 
—

 
—

 
—

Loans to individuals
—

 
—

 
—

 
—

 
—

Subtotal
—

 
—

 
—

 
—

 
—

Total
$
2,519

 
$
2,993

 
$
—

 
$
5,225

 
$
26

 
2018
 
Recorded
investment
 
Unpaid
principal
balance
 
Related
specific
allowance
 
Average
recorded
investment
 
Interest
Income
Recognized
 
(dollars in thousands)
Originated Loans:
 
 
 
 
 
 
 
 
 
With no related specific allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural and other
$
8,735

 
$
16,442

 
 
 
$
18,480

 
$
602

Real estate construction
—

 
—

 
 
 
—

 
—

Residential real estate
10,726

 
12,571

 
 
 
10,651

 
271

Commercial real estate
3,599

 
3,812

 
 
 
7,919

 
177

Loans to individuals
281

 
408

 
 
 
310

 
11

Subtotal
23,341

 
33,233

 
 
 
37,360

 
1,061

With a specific allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural and other
3,042

 
3,181

 
$
797

 
2,531

 
20

Real estate construction
—

 
—

 
—

 
—

 
—

Residential real estate
486

 
495

 
107

 
504

 
13

Commercial real estate
1,866

 
1,878

 
596

 
991

 
4

Loans to individuals
—

 
—

 
—

 
—

 
—

Subtotal
5,394

 
5,554

 
1,500

 
4,026

 
37

Total
$
28,735

 
$
38,787

 
$
1,500

 
$
41,386

 
$
1,098

Acquired Loans:
 
 
 
 
 
 
 
 
 
With no related specific allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural and other
$
73

 
$
73

 
 
 
$
214

 
$
10

Real estate construction
—

 
—

 
 
 
—

 
—

Residential real estate
2,031

 
2,604

 
 
 
1,906

 
5

Commercial real estate
1,042

 
2,052

 
 
 
1,565

 
—

Loans to individuals
15

 
17

 
 
 
16

 
—

Subtotal
3,161

 
4,746

 
 
 
3,701

 
15

With a specific allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural and other
131

 
131

 
$
131

 
11

 
—

Real estate construction
—

 
—

 
—

 
—

 
—

Residential real estate
—

 
—

 
—

 
—

 
—

Commercial real estate
—

 
—

 
—

 
—

 
—

Loans to individuals
—

 
—

 
—

 
—

 
—

Subtotal
131

 
131

 
131

 
11

 
—

Total
$
3,292

 
$
4,877

 
$
131

 
$
3,712

 
$
15

 
2017
 
Originated
 
Acquired
 
Average
recorded
investment
 
Interest
Income
Recognized
 
Average
recorded
investment
 
Interest
Income
Recognized
 
(dollars in thousands)
With no related specific allowance recorded:
 
 
 
 
 
 
 
Commercial, financial, agricultural and other
$
10,282

 
$
394

 
$
476

 
$
—

Real estate construction
—

 
—

 
25

 
—

Residential real estate
11,366

 
355

 
535

 
—

Commercial real estate
6,469

 
583

 
2,135

 
—

Loans to individuals
353

 
19

 
6

 
—

Subtotal
28,470

 
1,351

 
3,177

 
—

With a specific allowance recorded:
 
 
 
 
 
 
 
Commercial, financial, agricultural and other
9,391

 
96

 
—

 
—

Real estate construction
—

 
—

 
—

 
—

Residential real estate
167

 
—

 
74

 
—

Commercial real estate
143

 
4

 
155

 
—

Loans to individuals
—

 
—

 
—

 
—

Subtotal
9,701

 
100

 
229

 
—

Total
$
38,171

 
$
1,451

 
$
3,406

 
$
—


Unfunded commitments related to nonperforming loans were $1.7 million and $1.6 million at December 31, 2019 and 2018, respectively. After considering the collateral related to these commitments, a reserve of $12 thousand was established for these off balance sheet exposures at both December 31, 2019 and 2018, respectively.
Troubled debt restructured loans are those loans whose terms have been renegotiated to provide a reduction or deferral of principal or interest as a result of the financial difficulties experienced by the borrower, who could not obtain comparable terms from alternate financing sources. Troubled debt restructured loans are considered to be impaired loans.
The following table provides detail as to the total troubled debt restructured loans and total commitments outstanding on troubled debt restructured loans as of December 31:
 
2019
 
2018
 
2017
 
(dollars in thousands)
Troubled debt restructured loans
 
 
 
 
 
Accrual status
$
7,542

 
$
8,757

 
$
11,563

Nonaccrual status
6,037

 
11,761

 
11,222

Total
$
13,579

 
$
20,518

 
$
22,785

Commitments
 
 
 
 
 
Letters of credit
$
60

 
$
60

 
$
60

Unused lines of credit
163

 
1,027

 
54

Total
$
223

 
$
1,087

 
$
114



The following tables provide detail, including specific reserve and reasons for modification, related to loans identified as troubled debt restructurings during the years ending December 31:
 
2019
 
 
 
Type of Modification
 
 
 
 
 
 
 
Number
of
Contracts
 
Extend
Maturity
 
Modify
Rate
 
Modify
Payments
 
Total
Pre-Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
 
Specific
Reserve
 
(dollars in thousands)
Commercial, financial, agricultural and other
2

 
$
—

 
$
—

 
$
156

 
$
156

 
$
154

 
$
—

Residential real estate
20

 
17

 
204

 
965

 
1,186

 
1,059

 
—

Commercial real estate
5

 
—

 
556

 
6,261

 
6,817

 
594

 
—

Loans to individuals
11

 
—

 
—

 
143

 
143

 
121

 
—

Total
38

 
$
17

 
$
760

 
$
7,525

 
$
8,302

 
$
1,928

 
$
—

 
 
2018
 
 
 
Type of Modification
 
 
 
 
 
 
 
Number
of
Contracts
 
Extend
Maturity
 
Modify
Rate
 
Modify
Payments
 
Total
Pre-Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
 
Specific
Reserve
 
(dollars in thousands)
Commercial, financial, agricultural and other
3

 
$
74

 
$
—

 
$
8,250

 
$
8,324

 
$
6,104

 
$
—

Residential real estate
37

 
242

 
241

 
1,316

 
1,799

 
1,638

 
—

Commercial real estate
3

 
—

 
—

 
1,016

 
1,016

 
975

 
—

Loans to individuals
15

 
—

 
89

 
53

 
142

 
112

 
—

Total
58

 
$
316

 
$
330

 
$
10,635

 
$
11,281

 
$
8,829

 
$
—

 
2017
 
 
 
Type of Modification
 
 
 
 
 
 
 
Number
of
Contracts
 
Extend
Maturity
 
Modify
Rate
 
Modify
Payments
 
Total
Pre-Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
 
Specific
Reserve
 
(dollars in thousands)
Commercial, financial, agricultural and other
6

 
$
6,768

 
$
1,806

 
$
987

 
$
9,561

 
$
6,946

 
$
566

Residential real estate
20

 
134

 
261

 
573

 
968

 
851

 
1

Commercial real estate
5

 
179

 
—

 
269

 
448

 
412

 
29

Loans to individuals
10

 
—

 
28

 
49

 
77

 
65

 
—

Total
41

 
$
7,081

 
$
2,095

 
$
1,878

 
$
11,054

 
$
8,274

 
$
596


The troubled debt restructurings included in the above tables are also included in the impaired loan tables provided earlier in this footnote. Loans defined as modified due to a change in rate include loans that were modified for a change in rate as well as a reamortization of the principal and an extension of the maturity. For the years ended December 31, 2019, 2018 and 2017, $0.8 million, $0.3 million and $0.3 million, respectively, of total rate modifications represent loans with modifications to the rate as well as payment due to reamortization. For 2019, 2018 and 2017, the changes in loan balances between the pre-modification balance and post-modification balance are due to customer payments. In 2019, the change between the pre-modification and post-modification balance for commercial real estate loans is primarily due to the payoff of one large commercial relationship that restructured during the year.
A troubled debt restructuring is considered to be in default when a restructured loan is 90 days or more past due. The following table provides information related to loans that were restructured within the past twelve months and that were considered to be in default during the year ending December 31:
 
2019
 
2018
 
2017
 
Number of
Contracts
 
Recorded
Investment
 
Number of
Contracts
 
Recorded
Investment
 
Number of
Contracts
 
Recorded
Investment
 
(dollars in thousands)
Residential real estate
—

 
$
—

 
1

 
$
49

 
—

 
$
—

Loans to individuals
—

 
—

 
—

 
—

 
1

 
2

Total
—

 
$
—

 
1

 
$
49

 
1

 
$
2


The following tables provide detail related to the allowance for credit losses for the years ended December 31.
 
2019
 
Commercial,
financial,
agricultural
and other
 
Real estate
construction
 
Residential
real estate
 
Commercial
real estate
 
Loans to
individuals
 
Total
 
(dollars in thousands)
Allowance for credit losses:
 
 
 
 
 
 
 
 
 
 
 
Originated Loans:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
19,235

 
$
2,002

 
$
3,934

 
$
18,382

 
$
4,033

 
$
47,586

Charge-offs
(2,667
)
 
—

 
(986
)
 
(632
)
 
(5,747
)
 
(10,032
)
Recoveries
245

 
158

 
246

 
189

 
611

 
1,449

Provision (credit)
3,408

 
398

 
897

 
1,792

 
6,087

 
12,582

Ending balance
20,221

 
2,558

 
4,091

 
19,731

 
4,984

 
51,585

Acquired Loans:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
139

 
$
—

 
$
35

 
$
4

 
$
—

 
$
178

Charge-offs
(726
)
 
—

 
(56
)
 
(1,376
)
 
(84
)
 
(2,242
)
Recoveries
81

 
—

 
69

 
—

 
15

 
165

Provision (credit)
519

 
—

 
(46
)
 
1,409

 
69

 
1,951

Ending balance
13

 
—

 
2

 
37

 
—

 
52

Total ending balance
$
20,234

 
$
2,558

 
$
4,093

 
$
19,768

 
$
4,984

 
$
51,637

Ending balance: individually evaluated for impairment
$
1,580

 
$
—

 
$
1

 
$
851

 
$
—

 
$
2,432

Ending balance: collectively evaluated for impairment
18,654

 
2,558

 
4,092

 
18,917

 
4,984

 
49,205

Loans:
 
 
 
 
 
 
 
 
 
 
 
Ending balance
1,241,853

 
449,039

 
1,681,362

 
2,117,519

 
699,375

 
6,189,148

Ending balance: individually evaluated for impairment
9,246

 
—

 
1,741

 
6,846

 
—

 
17,833

Ending balance: collectively evaluated for impairment
1,232,607

 
449,039

 
1,679,621

 
2,110,673

 
699,375

 
6,171,315


 
2018
 
Commercial,
financial,
agricultural
and other
 
Real estate
construction
 
Residential
real estate
 
Commercial
real estate
 
Loans to
individuals
 
Total
 
(dollars in thousands)
Allowance for credit losses:
 
 
 
 
 
 
 
 
 
 
 
Originated Loans:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
23,418

 
$
1,349

 
$
2,753

 
$
17,328

 
$
3,404

 
$
48,252

Charge-offs
(5,201
)
 
—

 
(1,217
)
 
(3,930
)
 
(4,554
)
 
(14,902
)
Recoveries
746

 
135

 
233

 
153

 
579

 
1,846

Provision (credit)
272

 
518

 
2,165

 
4,831

 
4,604

 
12,390

Ending balance
19,235

 
2,002

 
3,934

 
18,382

 
4,033

 
47,586

Acquired Loans:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
11

 
$
—

 
$
6

 
$
29

 
$
—

 
$
46

Charge-offs
(93
)
 
—

 
(96
)
 
—

 
(22
)
 
(211
)
Recoveries
42

 
6

 
128

 
—

 
26

 
202

Provision (credit)
179

 
(6
)
 
(3
)
 
(25
)
 
(4
)
 
141

Ending balance
139

 
—

 
35

 
4

 
—

 
178

Total ending balance
$
19,374

 
$
2,002

 
$
3,969

 
$
18,386

 
$
4,033

 
$
47,764

Ending balance: individually evaluated for impairment
$
928

 
$
—

 
$
107

 
$
596

 
$
—

 
$
1,631

Ending balance: collectively evaluated for impairment
18,446

 
2,002

 
3,862

 
17,790

 
4,033

 
46,133

Loans:
 
 
 
 
 
 
 
 
 
 
 
Ending balance
1,138,473

 
358,978

 
1,562,405

 
2,123,544

 
590,739

 
5,774,139

Ending balance: individually evaluated for impairment
11,631

 
—

 
3,747

 
5,710

 
—

 
21,088

Ending balance: collectively evaluated for impairment
1,126,842

 
358,978

 
1,558,658

 
2,117,834

 
590,739

 
5,753,051

 
2017
 
Commercial,
financial,
agricultural
and other
 
Real estate
construction
 
Residential
real estate
 
Commercial
real estate
 
Loans to
individuals
 
Total
 
(dollars in thousands)
Allowance for credit losses:
 
 
 
 
 
 
 
 
 
 
 
Originated Loans:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
35,974

 
$
577

 
$
2,492

 
$
6,619

 
$
4,504

 
$
50,166

Charge-offs
(6,176
)
 
—

 
(1,261
)
 
(340
)
 
(4,220
)
 
(11,997
)
Recoveries
3,900

 
465

 
304

 
274

 
460

 
5,403

Provision (credit)
(10,280
)
 
307

 
1,218

 
10,775

 
2,660

 
4,680

Ending balance
23,418

 
1,349

 
2,753

 
17,328

 
3,404

 
48,252

Acquired Loans:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
—

 
—

 
19

 
—

 
—

 
19

Charge-offs
(458
)
 
—

 
(26
)
 
—

 
(28
)
 
(512
)
Recoveries
1

 
5

 
67

 
4

 
55

 
132

Provision (credit)
468

 
(5
)
 
(54
)
 
25

 
(27
)
 
407

Ending balance
11

 
—

 
6

 
29

 
—

 
46

Total ending balance
$
23,429

 
$
1,349

 
$
2,759

 
$
17,357

 
$
3,404

 
$
48,298

Ending balance: individually evaluated for impairment
$
3,478

 
$
—

 
$
111

 
$
157

 
$
—

 
$
3,746

Ending balance: collectively evaluated for impairment
19,951

 
1,349

 
2,648

 
17,200

 
3,404

 
44,552

Loans:
 
 
 
 
 
 
 
 
 
 
 
Ending balance
1,163,383

 
248,868

 
1,426,370

 
2,019,096

 
549,659

 
5,407,376

Ending balance: individually evaluated for impairment
22,450

 
—

 
6,698

 
6,003

 
—

 
35,151

Ending balance: collectively evaluated for impairment
1,140,933

 
248,868

 
1,419,672

 
2,013,093

 
549,659

 
5,372,225