Non Purchased Loans

6 Months Ended

Jun. 30, 2020

Receivables [Abstract]

Non Purchased Loans

Non Purchased Loans

(In Thousands, Except Number of Loans)

For purposes of this Note 3, all references to “loans” mean non purchased loans excluding loans held for sale.

The following is a summary of non purchased loans and leases as of the dates presented:

	June 30, 2020		December 31, 2019
Commercial, financial, agricultural	$	2,416,243	$	1,052,353
Lease financing	84,271		85,700
Real estate – construction:
Residential	291,983		272,643
Commercial	464,889		502,258
Total real estate – construction	756,872		774,901
Real estate – 1-4 family mortgage:
Primary	1,476,196		1,449,219
Home equity	440,774		456,265
Rental/investment	277,647		291,931
Land development	148,370		152,711
Total real estate – 1-4 family mortgage	2,342,987		2,350,126
Real estate – commercial mortgage:
Owner-occupied	1,270,197		1,209,204
Non-owner occupied	2,011,744		1,803,587
Land development	118,777		116,085
Total real estate – commercial mortgage	3,400,718		3,128,876
Installment loans to individuals	208,502		199,843
Gross loans	9,209,593		7,591,799
Unearned income	(3,492)		(3,825)
Loans, net of unearned income	$	9,206,101	$	7,587,974

Past Due and Nonaccrual Loans

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Generally, the recognition of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Consumer and other retail loans are typically charged-off no later than the time the loan is 120 days past due. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due. All interest accrued for the current year, but not collected, for loans that are placed on nonaccrual status or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The Company recognized $37 in interest income on nonaccrual loans during the first six months of 2020.

The following table provides an aging of past due accruing and nonaccruing loans, segregated by class, as of the dates presented:

	Accruing Loans								Nonaccruing Loans
	30-89 Days Past Due		90 Days or More Past Due		Current Loans		Total Loans		30-89 Days Past Due		90 Days or More Past Due		Current Loans		Total Loans		Total Loans
June 30, 2020
Commercial, financial, agricultural	$	576	$	776	$	2,411,443	$	2,412,795	$	—	$	1,990	$	1,458	$	3,448	$	2,416,243
Lease financing	—		—		84,120		84,120		—		—		151		151		84,271
Real estate – construction:
Residential	150		—		291,833		291,983		—		—		—		—		291,983
Commercial	—		—		464,889		464,889		—		—		—		—		464,889
Total real estate – construction	150		—		756,722		756,872		—		—		—		—		756,872
Real estate – 1-4 family mortgage:
Primary	3,464		2,453		1,463,010		1,468,927		206		2,907		4,156		7,269		1,476,196
Home equity	502		178		439,608		440,288		—		67		419		486		440,774
Rental/investment	304		248		276,631		277,183		—		457		7		464		277,647
Land development	32		—		148,286		148,318		—		18		34		52		148,370
Total real estate – 1-4 family mortgage	4,302		2,879		2,327,535		2,334,716		206		3,449		4,616		8,271		2,342,987
Real estate – commercial mortgage:
Owner-occupied	419		106		1,265,911		1,266,436		99		3,103		559		3,761		1,270,197
Non-owner occupied	450		61		2,010,539		2,011,050		—		374		320		694		2,011,744
Land development	107		39		118,543		118,689		—		88		—		88		118,777
Total real estate – commercial mortgage	976		206		3,394,993		3,396,175		99		3,565		879		4,543		3,400,718
Installment loans to individuals	582		132		207,610		208,324		—		140		38		178		208,502
Unearned income	—		—		(3,492)		(3,492)		—		—		—		—		(3,492)
Loans, net of unearned income	$	6,586	$	3,993	$	9,178,931	$	9,189,510	$	305	$	9,144	$	7,142	$	16,591	$	9,206,101

	Accruing Loans								Nonaccruing Loans
	30-89 Days Past Due		90 Days or More Past Due		Current Loans		Total Loans		30-89 Days Past Due		90 Days or More Past Due		Current Loans		Total Loans		Total Loans
December 31, 2019
Commercial, financial, agricultural	$	605	$	476	$	1,045,802	$	1,046,883	$	387	$	5,023	$	60	$	5,470	$	1,052,353
Lease financing	—		—		85,474		85,474		—		226		—		226		85,700
Real estate – construction	794		—		774,107		774,901		—		—		—		—		774,901
Real estate – 1-4 family mortgage	18,020		2,502		2,320,328		2,340,850		623		6,571		2,082		9,276		2,350,126
Real estate – commercial mortgage	2,362		276		3,119,785		3,122,423		372		4,655		1,426		6,453		3,128,876
Installment loans to individuals	1,000		204		198,555		199,759		—		17		67		84		199,843
Unearned income	—		—		(3,825)		(3,825)		—		—		—		—		(3,825)
Total loans, net	$	22,781	$	3,458	$	7,540,226	$	7,566,465	$	1,382	$	16,492	$	3,635	$	21,509	$	7,587,974

Restructured Loans

Restructured loans are those for which concessions have been granted to the borrower due to a deterioration of the borrower’s financial condition and which are performing in accordance with the new terms. Such concessions may include reduction in interest rates or deferral of interest or principal payments. In evaluating whether to restructure a loan, management analyzes the long-term financial condition of the borrower, including guarantor and collateral support, to determine whether the proposed concessions will increase the likelihood of repayment of principal and interest.

The tables below illustrate the impact of modifications classified as restructured loans which were made during the periods presented and held on the Consolidated Balance Sheets at the respective period end.

	Number of Loans	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Three months ended June 30, 2020
Commercial, financial, agricultural	4	$	933	$	930
Real estate – 1-4 family mortgage:
Primary	12	1,709		1,714
Rental/investment	1	109		110
Total real estate – 1-4 family mortgage	13	1,818		1,824
Real estate – commercial mortgage:
Owner-occupied	1	2,663		2,613
Land development	1	189		189
Total real estate – commercial mortgage	2	2,852		2,802
Installment loans to individuals	2	24		21
Total	21	$	5,627	$	5,577
Three months ended June 30, 2019
Commercial, financial, agricultural	2	$	187	$	185
Real estate – 1-4 family mortgage	3	305		304
Total	5	$	492	$	489

	Number of Loans	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Six months ended June 30, 2020
Commercial, financial, agricultural	6	$	1,831	$	1,828
Real estate – 1-4 family mortgage:
Primary	15	2,155		2,163
Rental/investment	1	109		110
Total real estate – 1-4 family mortgage	16	2,264		2,273
Real estate – commercial mortgage:
Owner-occupied	1	2,663		2,613
Land development	1	189		189
Total real estate – commercial mortgage	2	2,852		2,802
Installment loans to individuals	2	24		21
Total	26	$	6,971	$	6,924
Six months ended June 30, 2019
Commercial, financial, agricultural	2	$	187	$	185
Real estate – 1-4 family mortgage	3	305		304
Total	5	$	492	$	489

With respect to loans that were restructured during the six months ended June 30, 2020 and June 30, 2019, none have subsequently defaulted, and remain outstanding, as of the date of this report.

Restructured loans not performing in accordance with their restructured terms that are either contractually 90 days or more past due or placed on nonaccrual status are reported as nonperforming loans. There were three restructured loans in the amount of $352 contractually 90 days past due or more and still accruing at June 30, 2020 and one restructured loan in the amount of $37 contractually 90 days past due or more and still accruing at June 30, 2019. The outstanding balance of restructured loans on nonaccrual status was $2,306 and $3,288 at June 30, 2020 and June 30, 2019, respectively.

Changes in the Company’s restructured loans are set forth in the table below:

	Number of Loans	Recorded Investment
Totals at January 1, 2020	46	$	4,679
Additional advances or loans with concessions	26	6,951
Reclassified as performing restructured loan	2	188
Reductions due to:
Reclassified as nonperforming	(1)	(90)
Principal paydowns	—	(104)
Totals at June 30, 2020	73	$	11,624

The allocated allowance for credit losses on loans attributable to restructured loans was $299 and $30 at June 30, 2020 and June 30, 2019, respectively. The Company had no remaining availability under commitments to lend additional funds on these restructured loans at June 30, 2020 and $1 at June 30, 2019.

In response to the current economic environment caused by the COVID-19 pandemic, the Company implemented a loan deferral program in the first quarter of 2020 that provides temporary payment relief to both consumer and commercial customers. Any customer that is current on loan payments, taxes and insurance can qualify for an initial 90-day deferral of principal and interest payments. A second 90-day deferral has been made available to borrowers that remain current on taxes

and insurance and also satisfy underwriting standards established by the Company that analyze the ability of the borrower to service its loan in accordance with its existing terms in light of the impact of the COVID-19 pandemic on the borrower, its industry and the markets in which it operates. The Company’s loan deferral program complies with the guidance set forth in the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act and related guidance from the FDIC and other banking regulators. As of June 30, 2020, the Company had approximately 3,500 loans with total balances of approximately $1,579,000 on deferral. In accordance with the applicable guidance, none of these loans were considered “restructured loans.”

Credit Quality

For commercial and commercial real estate loans, internal risk-rating grades are assigned by lending, credit administration and loan review personnel, based on an analysis of the financial and collateral strength and other credit attributes underlying each loan. Management analyzes the resulting ratings, as well as other external statistics and factors such as delinquency, to track the migration performance of the portfolio balances of these loans. Loan grades range between 1 and 9, with 1 being loans with the least credit risk. Loans within the “Pass” grade generally have a lower risk of loss and therefore a lower risk factor applied to the loan balances. The “Pass” grade is reserved for loans with a risk rating between 1 and 4A, and the “Pass-Watch” grade (those with a risk rating of 4B and 4E) is utilized on a temporary basis for “Pass” grade loans where a significant adverse risk-modifying action is anticipated in the near term. Loans that migrate toward the “Substandard” grade (those with a risk rating between 5 and 9) generally have a higher risk of loss and therefore a higher risk factor applied to the related loan balances. During the first quarter of 2020, the Company proactively downgraded to “Pass-Watch” certain “Pass” rated loans greater than $1,000 in industries the Company believes pose a greater risk in the current pandemic environment (i.e. hotel/motel, restaurant and entertainment industries). Note 5, "Allowance for Credit Losses," provides additional information about the Company's heightened monitoring efforts.

The following table presents the Company’s loan portfolio by year of origination and internal risk-rating grades as of the dates presented:

	Term Loans Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
June 30, 2020
Commercial, Financial, Agricultural	$	1,392,740	$	257,515	$	94,037	$	62,413	$	25,655	$	27,363	$	254,558	$	13,464	$	2,127,745
Pass	1,392,738		247,077		92,791		59,493		23,664		25,372		245,913		12,073		2,099,121
Pass-Watch	2		9,739		332		912		1,088		94		8,399		841		21,407
Substandard	—		699		914		2,008		903		1,897		246		550		7,217
Real Estate - Construction	$	195,286	$	338,611	$	72,159	$	60,550	$	—	$	—	$	16,990	$	44	$	683,640
Residential	$	118,833	$	80,459	$	8,227	$	—	$	—	$	—	$	16,839	$	44	$	224,402
Pass	118,833		80,395		8,227		—		—		—		16,839		44		224,338
Pass-Watch	—		—		—		—		—		—		—		—		—
Substandard	—		64		—		—		—		—		—		—		64
Commercial	$	76,453	$	258,152	$	63,932	$	60,550	$	—	$	—	$	151	$	—	$	459,238
Pass	76,397		258,152		63,932		47,103		—		—		151		—		445,735
Pass-Watch	56		—		—		13,447		—		—		—		—		13,503
Substandard	—		—		—		—		—		—		—		—		—
Real Estate - 1-4 Family Mortgage	$	57,467	$	114,124	$	65,789	$	38,814	$	18,428	$	18,300	$	18,558	$	382	$	331,862
Primary	$	4,833	$	7,400	$	7,845	$	6,160	$	881	$	2,504	$	362	$	—	$	29,985
Pass	4,833		7,400		7,820		6,160		818		2,486		362		—		29,879
Pass-Watch	—		—		—		—		—		1		—		—		1
Substandard	—		—		25		—		63		17		—		—		105
Home Equity	$	149	$	546	$	—	$	—	$	—	$	—	$	11,524	$	—	$	12,219
Pass	149		546		—		—		—		—		11,399		—		12,094
Pass-Watch	—		—		—		—		—		—		125		—		125
Substandard	—		—		—		—		—		—		—		—		—
Rental/Investment	$	20,737	$	42,266	$	34,586	$	32,019	$	17,032	$	15,380	$	1,271	$	382	$	163,673

	Term Loans Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
Pass	20,737		40,933		34,081		30,537		16,771		14,552		1,171		382		159,164
Pass-Watch	—		386		228		1,411		154		619		100		—		2,898
Substandard	—		947		277		71		107		209		—		—		1,611
Land Development	$	31,748	$	63,912	$	23,358	$	635	$	515	$	416	$	5,401	$	—	$	125,985
Pass	31,748		63,040		22,414		635		508		377		5,401		—		124,123
Pass-Watch	—		243		944		—		—		39		—		—		1,226
Substandard	—		629		—		—		7		—		—		—		636
Real Estate - Commercial Mortgage	$	419,358	$	856,931	$	504,478	$	450,579	$	407,992	$	365,134	$	52,257	$	19,010	$	3,075,739
Owner-Occupied	$	107,866	$	254,313	$	220,155	$	196,621	$	142,016	$	115,127	$	22,217	$	6,506	$	1,064,821
Pass	102,967		249,778		208,899		189,281		134,801		108,918		17,887		6,506		1,019,037
Pass-Watch	4,225		4,116		7,731		2,796		3,222		4,614		3,457		—		30,161
Substandard	674		419		3,525		4,544		3,993		1,595		873		—		15,623
Non-Owner Occupied	$	293,527	$	573,368	$	269,220	$	248,014	$	260,506	$	243,925	$	26,759	$	12,504	$	1,927,823
Pass	271,244		569,207		259,989		236,138		259,636		232,876		26,075		12,381		1,867,546
Pass-Watch	22,283		3,927		9,231		10,280		870		10,122		684		123		57,520
Substandard	—		234		—		1,596		—		927		—		—		2,757
Land Development	$	17,965	$	29,250	$	15,103	$	5,944	$	5,470	$	6,082	$	3,281	$	—	$	83,095
Pass	16,095		29,250		13,451		5,944		3,703		6,082		3,281		—		77,806
Pass-Watch	1,870		—		1,652		—		—		—		—		—		3,522
Substandard	—		—		—		—		1,767		—		—		—		1,767
Installment loans to individuals	$	78	$	6	$	—	$	—	$	—	$	—	$	—	$	20	$	104
Pass	78		6		—		—		—		—		—		20		104
Pass-Watch	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total loans subject to risk rating	$	2,064,929	$	1,567,187	$	736,463	$	612,356	$	452,075	$	410,797	$	342,363	$	32,920	$	6,219,090
Pass	2,035,819		1,545,784		711,604		575,291		439,901		390,663		328,479		31,406		6,058,947
Pass-Watch	28,436		18,411		20,118		28,846		5,334		15,489		12,765		964		130,363
Substandard	674		2,992		4,741		8,219		6,840		4,645		1,119		550		29,780

The following table presents the performing status of the Company’s loan portfolio not subject to risk rating as of the dates presented:

	Term Loans Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
June 30, 2020
Commercial, Financial, Agricultural	$	21,544	$	22,735	$	14,112	$	8,760	$	4,142	$	16,276	$	200,554	$	375	$	288,498
Performing Loans	21,544		22,662		14,064		8,258		3,989		16,226		200,062		373		287,178
Non-Performing Loans	—		73		48		502		153		50		492		2		1,320
Lease Financing Receivables	$	11,141	$	36,646	$	20,145	$	5,661	$	2,941	$	4,245	$	—	$	—	$	80,779
Performing Loans	11,141		36,646		20,145		5,661		2,790		4,245		—		—		80,628
Non-Performing Loans	—		—		—		—		151		—		—		—		151
Real Estate - Construction	$	16,681	$	48,457	$	6,884	$	657	$	208	$	—	$	345	$	—	$	73,232
Residential	$	14,549	$	45,678	$	6,524	$	430	$	55	$	—	$	345	$	—	$	67,581
Performing Loans	14,549		45,678		6,524		430		55		—		345		—		67,581
Non-Performing Loans	—		—		—		—		—		—		—		—		—
Commercial	$	2,132	$	2,779	$	360	$	227	$	153	$	—	$	—	$	—	$	5,651
Performing Loans	2,132		2,779		360		227		153		—		—		—		5,651
Non-Performing Loans	—		—		—		—		—		—		—		—		—
Real Estate - 1-4 Family Mortgage	$	209,952	$	407,569	$	330,969	$	244,056	$	132,063	$	256,708	$	426,732	$	3,076	$	2,011,125
Primary	$	188,179	$	373,145	$	303,324	$	218,610	$	116,618	$	245,144	$	1,120	$	71	$	1,446,211
Performing Loans	188,179		372,404		299,190		216,851		115,908		242,802		1,109		71		1,436,514
Non-Performing Loans	—		741		4,134		1,759		710		2,342		11		—		9,697
Home Equity	$	—	$	305	$	381	$	180	$	45	$	1,016	$	423,956	$	2,672	$	428,555
Performing Loans	—		305		381		180		45		897		423,796		2,287		427,891
Non-Performing Loans	—		—		—		—		—		119		160		385		664
Rental/Investment	$	17,167	$	26,557	$	22,721	$	22,654	$	14,081	$	9,399	$	1,062	$	333	$	113,974
Performing Loans	17,167		26,451		22,721		22,528		14,034		9,244		1,062		333		113,540
Non-Performing Loans	—		106		—		126		47		155		—		—		434
Land Development	$	4,606	$	7,562	$	4,543	$	2,612	$	1,319	$	1,149	$	594	$	—	$	22,385
Performing Loans	4,606		7,555		4,531		2,578		1,319		1,149		594		—		22,332
Non-Performing Loans	—		7		12		34		—		—		—		—		53
Real Estate - Commercial Mortgage	$	39,693	$	80,462	$	65,961	$	54,418	$	42,739	$	28,503	$	12,589	$	614	$	324,979
Owner-Occupied	$	23,493	$	48,772	$	41,657	$	35,457	$	29,113	$	19,714	$	6,761	$	409	$	205,376
Performing Loans	23,493		48,720		41,443		35,271		28,987		19,078		6,761		409		204,162
Non-Performing Loans	—		52		214		186		126		636		—		—		1,214
Non-Owner Occupied	$	11,398	$	21,426	$	17,775	$	15,171	$	9,281	$	5,919	$	2,801	$	150	$	83,921
Performing Loans	11,398		21,426		17,714		15,171		9,281		5,535		2,801		150		83,476
Non-Performing Loans	—		—		61		—		—		384		—		—		445
Land Development	$	4,802	$	10,264	$	6,529	$	3,790	$	4,345	$	2,870	$	3,027	$	55	$	35,682
Performing Loans	4,802		10,245		6,529		3,780		4,345		2,849		3,027		55		35,632
Non-Performing Loans	—		19		—		10		—		21		—		—		50
Installment loans to individuals	$	55,095	$	111,575	$	19,074	$	5,886	$	3,453	$	2,291	$	10,919	$	105	$	208,398
Performing Loans	55,095		111,486		18,931		5,872		3,401		2,290		10,919		94		208,088
Non-Performing Loans	—		89		143		14		52		1		—		11		310
Total loans not subject to risk rating	$	354,106	$	707,444	$	457,145	$	319,438	$	185,546	$	308,023	$	651,139	$	4,170	$	2,987,011
Performing Loans	354,106		706,357		452,533		316,807		184,307		304,315		650,476		3,772		2,972,673
Non-Performing Loans	—		1,087		4,612		2,631		1,239		3,708		663		398		14,338

The following disclosures are presented under GAAP in effect prior to the adoption of CECL. The Company has included these disclosures to address the applicable prior period.

A discussion of the Company’s policies regarding internal risk-rating of loans is discussed above and is applicable to these tables. The following tables present the Company’s loan portfolio by internal risk-rating grades as of the date presented:

	Pass		Watch		Substandard		Total
December 31, 2019
Commercial, financial, agricultural	$	779,798	$	11,949	$	11,715	$	803,462
Real estate – construction	698,950		501		9,209		708,660
Real estate – 1-4 family mortgage	339,079		3,856		3,572		346,507
Real estate – commercial mortgage	2,737,629		31,867		26,711		2,796,207
Installment loans to individuals	6		—		—		6
Total	$	4,555,462	$	48,173	$	51,207	$	4,654,842

	Performing		Non- Performing		Total
December 31, 2019
Commercial, financial, agricultural	$	247,575	$	1,316	$	248,891
Lease financing	81,649		226		81,875
Real estate – construction	66,241		—		66,241
Real estate – 1-4 family mortgage	1,992,331		11,288		2,003,619
Real estate – commercial mortgage	330,714		1,955		332,669
Installment loans to individuals	199,549		288		199,837
Total	$	2,918,059	$	15,073	$	2,933,132

The following disclosures are presented under GAAP in effect prior to the adoption of CECL that are no longer applicable or required. The Company has included these disclosures to address the applicable prior periods.

Impaired Loans

Loans formerly accounted for under FASB ASC 310-20, “Nonrefundable Fees and Other Cost” (“ASC 310-20”), and which are impaired loans recognized in conformity with ASC 310, “Receivables” (“ASC 310”), segregated by class, were as follows as of the date presented:

	Unpaid Contractual Principal Balance		Recorded Investment With Allowance		Recorded Investment With No Allowance		Total Recorded Investment		Related Allowance
December 31, 2019
Commercial, financial, agricultural	$	6,623	$	5,722	$	—	$	5,722	$	1,222
Lease financing	226		226		—		226		3
Real estate – construction	9,145		—		9,145		9,145		—
Real estate – 1-4 family mortgage	14,018		13,689		—		13,689		143
Real estate – commercial mortgage	11,067		7,361		1,080		8,441		390
Installment loans to individuals	91		84		—		84		1
Totals	$	41,170	$	27,082	$	10,225	$	37,307	$	1,759

The following table presents the average recorded investment and interest income recognized on loans formerly accounted for under ASC 310-20 and which are impaired loans for the period presented:

	Three Months Ended				Six Months Ended
	June 30, 2019				June 30, 2019
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial, financial, agricultural	$	5,746	$	9	$	5,773	$	18
Lease financing	88		—		87		—
Real estate – construction	9,015		105		8,986		210
Real estate – 1-4 family mortgage	10,584		51		10,640		103
Real estate – commercial mortgage	5,812		38		5,851		81
Installment loans to individuals	90		1		90		2
Total	$	31,335	$	204	$	31,427	$	414

Purchased Loans

(In Thousands, Except Number of Loans)

For purposes of this Note 4, all references to “loans” mean purchased loans excluding loans held for sale.

The following is a summary of purchased loans as of the dates presented:

	June 30, 2020		December 31, 2019
Commercial, financial, agricultural	$	225,355	$	315,619
Real estate – construction:
Residential	3,948		16,407
Commercial	30,288		35,175
Total real estate – construction	34,236		51,582
Real estate – 1-4 family mortgage:
Primary	280,057		332,729
Home equity	102,694		117,275
Rental/investment	41,156		43,169
Land development	21,619		23,314
Total real estate – 1-4 family mortgage	445,526		516,487
Real estate – commercial mortgage:
Owner-occupied	390,477		428,077
Non-owner occupied	582,569		647,308
Land development	36,989		40,004
Total real estate – commercial mortgage	1,010,035		1,115,389
Installment loans to individuals	76,051		102,587
Loans, net of unearned income	$	1,791,203	$	2,101,664

Past Due and Nonaccrual Loans

The Company’s policies with respect to placing loans on nonaccrual status or charging off loans, and its accounting for interest on any such loans, are described above in Note 3, “Non Purchased Loans.” The Company recognized $283 in interest income on nonaccrual loans during the first six months of 2020.

The following tables provide an aging of past due accruing and nonaccruing loans, segregated by class, as of the dates presented:

	Accruing Loans								Nonaccruing Loans
	30-89 Days Past Due		90 Days or More Past Due		Current Loans		Total Loans		30-89 Days Past Due		90 Days or More Past Due		Current Loans		Total Loans		Total Loans
June 30, 2020
Commercial, financial, agricultural	$	161	$	188	$	218,892	$	219,241	$	—	$	1,444	$	4,670	$	6,114	$	225,355
Real estate – construction:
Residential	—		—		3,948		3,948		—		—		—		—		3,948
Commercial	—		—		30,288		30,288		—		—		—		—		30,288
Total real estate – construction	—		—		34,236		34,236		—		—		—		—		34,236
Real estate – 1-4 family mortgage:
Primary	654		812		272,048		273,514		1,575		3,748		1,220		6,543		280,057
Home equity	224		154		100,915		101,293		137		476		788		1,401		102,694
Rental/investment	23		32		40,249		40,304		—		724		128		852		41,156
Land development	—		—		21,245		21,245		—		130		244		374		21,619
Total real estate – 1-4 family mortgage	901		998		434,457		436,356		1,712		5,078		2,380		9,170		445,526
Real estate – commercial mortgage:
Owner-occupied	427		386		385,222		386,035		70		1,880		2,492		4,442		390,477
Non-owner occupied	55		518		581,143		581,716		10		697		146		853		582,569
Land development	50		—		36,457		36,507		—		235		247		482		36,989
Total real estate – commercial mortgage	532		904		1,002,822		1,004,258		80		2,812		2,885		5,777		1,010,035
Installment loans to individuals	1,495		68		74,188		75,751		34		117		149		300		76,051
Loans, net of unearned income	$	3,089	$	2,158	$	1,764,595	$	1,769,842	$	1,826	$	9,451	$	10,084	$	21,361	$	1,791,203

	Accruing Loans								Nonaccruing Loans
	30-89 Days Past Due		90 Days or More Past Due		Current Loans		Total Loans		30-89 Days Past Due		90 Days or More Past Due		Current Loans		Total Loans		Total Loans
December 31, 2019
Commercial, financial, agricultural	$	1,889	$	998	$	311,218	$	314,105	$	—	$	1,246	$	268	$	1,514	$	315,619
Real estate – construction	319		—		51,263		51,582		—		—		—		—		51,582
Real estate – 1-4 family mortgage	5,516		2,244		503,826		511,586		605		2,762		1,534		4,901		516,487
Real estate – commercial mortgage	3,454		922		1,110,570		1,114,946		—		123		320		443		1,115,389
Installment loans to individuals	3,709		153		98,545		102,407		1		51		128		180		102,587
Total Loans, net	$	14,887	$	4,317	$	2,075,422	$	2,094,626	$	606	$	4,182	$	2,250	$	7,038	$	2,101,664

Restructured Loans

An explanation of what constitutes a “restructured loan,” and management’s analysis in determining whether to restructure a loan, are described above in Note 3, “Non Purchased Loans.”

The tables below illustrate the impact of modifications classified as restructured loans which were made during the periods presented and held on the Consolidated Balance Sheets at the respective period end.

	Number of Loans	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Three months ended June 30, 2020
Commercial, financial, agricultural	1	$	1,029	$	1,031
Real estate – 1-4 family mortgage:
Primary	1	$	66	$	68
Home equity	1	159		162
Total real estate – 1-4 family mortgage	2	225		230
Real estate – commercial mortgage:
Owner-occupied	1	69		69
Non-owner occupied	1	542		544
Total real estate – commercial mortgage	2	611		613
Installment loans to individuals	1	25		19
Total	6	1,890		1,893
Three months ended June 30, 2019
Commercial, financial, agricultural	1	$	2,520	$	2,520
Real estate – commercial mortgage	1	80		76
Total	2	$	2,600	$	2,596

	Number of Loans	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Six months ended June 30, 2020
Commercial, financial, agricultural	1	$	1,029	$	1,031
Real estate – 1-4 family mortgage:
Primary	2	290		183
Home equity	1	159		162
Total real estate – 1-4 family mortgage	3	449		345
Real estate – commercial mortgage:
Owner-occupied	1	69		69
Non-owner occupied	1	542		544
Total real estate – commercial mortgage	2	611		613
Installment loans to individuals	1	25		19
Total	7	2,114		2,008
Six months ended June 30, 2019
Commercial, financial, agricultural	1	$	2,520	$	2,520
Real estate – commercial mortgage	1	80		76
Total	2	$	2,600	$	2,596

With respect to loans that were restructured during the six months ended June 30, 2020 and June 30, 2019, none have subsequently defaulted, and remain outstanding, as of the date of this report.

There were three restructured loans in the amount of $207 contractually 90 days past due or more and still accruing at June 30, 2020 and one restructured loan in the amount of $167 contractually 90 days past due or more and still accruing at June 30, 2019. The outstanding balance of restructured loans on nonaccrual status was $7,851 and $1,276 at June 30, 2020 and June 30, 2019, respectively.

Changes in the Company’s restructured loans are set forth in the table below:

	Number of Loans	Recorded Investment
Totals at January 1, 2020	54	$	7,275
Additional advances or loans with concessions	7	2,154
Reductions due to:
Reclassified to nonperforming loans	(12)	(2,449)
Paid in full	(2)	(422)
Charge-offs	(1)	(3)
Principal paydowns	—	(101)
Totals at June 30, 2020	46	$	6,454

The allocated allowance for credit losses on loans attributable to restructured loans was $302 and $79 at June 30, 2020 and June 30, 2019, respectively. The Company had $242 and $3 in remaining availability under commitments to lend additional funds on these restructured loans at June 30, 2020 and June 30, 2019, respectively.

As discussed in Note 3, “Non Purchased Loans,” the Company has implemented a loan deferral program in response to the COVID-19 pandemic. As of June 30, 2020, the Company had approximately 1,700 loans with total balances of approximately $515,000 on deferral. Under the applicable guidance, none of these loans were considered “restructured loans.”

Credit Quality

A discussion of the Company’s policies regarding internal risk-rating of loans is discussed above in Note 3, “Non Purchased Loans.” The following table presents the Company’s loan portfolio by year of origination and internal risk-rating grades as of the dates presented:

	Term Loans Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
June 30, 2020
Commercial, Financial, Agricultural	$	—	$	742	$	39,570	$	36,382	$	31,060	$	32,779	$	70,440	$	1,620	$	212,593
Pass	—		742		25,777		28,743		29,527		28,470		57,591		1,246		172,096
Pass-Watch	—		—		11		1,471		45		1,203		2,082		128		4,940
Substandard	—		—		13,782		6,168		1,488		3,106		10,767		246		35,557
Real Estate - Construction	$	—	$	—	$	11,046	$	9,315	$	10,112	$	3,763	$	—	$	—	$	34,236
Residential	$	—	$	—	$	3,055	$	210	$	683	$	—	$	—	$	—	$	3,948
Pass	—		—		3,055		210		683		—		—		—		3,948
Pass-Watch	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Commercial	$	—	$	—	$	7,991	$	9,105	$	9,429	$	3,763	$	—	$	—	$	30,288
Pass	—		—		7,991		9,105		9,429		3,763		—		—		30,288
Pass-Watch	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Real Estate - 1-4 Family Mortgage	$	—	$	—	$	16,517	$	13,892	$	2,726	$	49,341	$	2,072	$	253	$	84,801
Primary	$	—	$	—	$	7,913	$	6,563	$	626	$	20,054	$	—	$	—	$	35,156
Pass	—		—		6,634		6,563		613		14,781		—		—		28,591
Pass-Watch	—		—		—		—		—		319		—		—		319
Substandard	—		—		1,279		—		13		4,954		—		—		6,246
Home Equity	$	—	$	—	$	—	$	—	$	—	$	—	$	1,888	$	253	$	2,141
Pass	—		—		—		—		—		—		1,236		—		1,236
Pass-Watch	—		—		—		—		—		—		77		—		77
Substandard	—		—		—		—		—		—		575		253		828
Rental/Investment	$	—	$	—	$	—	$	1,180	$	833	$	26,097	$	184	$	—	$	28,294
Pass	—		—		—		1,180		833		23,421		184		—		25,618
Pass-Watch	—		—		—		—		—		210		—		—		210
Substandard	—		—		—		—		—		2,466		—		—		2,466
Land Development	$	—	$	—	$	8,604	$	6,149	$	1,267	$	3,190	$	—	$	—	$	19,210
Pass	—		—		8,342		6,122		1,267		1,903		—		—		17,634
Pass-Watch	—		—		262		—		—		—		—		—		262
Substandard	—		—		—		27		—		1,287		—		—		1,314

	Term Loans Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
Real Estate - Commercial Mortgage	$	—	$	—	$	86,409	$	173,083	$	185,955	$	495,960	$	22,383	$	4,821	$	968,611
Owner-Occupied	$	—	$	—	$	21,894	$	42,531	$	64,247	$	223,581	$	14,970	$	2	$	367,225
Pass	—		—		20,440		40,202		44,852		198,677		14,969		—		319,140
Pass-Watch	—		—		1,453		33		16,828		3,783		—		—		22,097
Substandard	—		—		1		2,296		2,567		21,121		1		2		25,988
Non-Owner Occupied	$	—	$	—	$	57,176	$	125,247	$	118,697	$	257,126	$	6,701	$	4,819	$	569,766
Pass	—		—		37,368		115,056		118,697		241,071		6,701		4,819		523,712
Pass-Watch	—		—		3,442		2,521		—		4,465		—		—		10,428
Substandard	—		—		16,366		7,670		—		11,590		—		—		35,626
Land Development	$	—	$	—	$	7,339	$	5,305	$	3,011	$	15,253	$	712	$	—	$	31,620
Pass	—		—		6,465		5,251		2,827		8,353		598		—		23,494
Pass-Watch	—		—		874		54		45		5,501		114		—		6,588
Substandard	—		—		—		—		139		1,399		—		—		1,538
Total loans subject to risk rating	$	—	$	742	$	153,542	$	232,672	$	229,853	$	581,843	$	94,895	$	6,694	$	1,300,241
Pass	—		742		116,072		212,432		208,728		520,439		81,279		6,065		1,145,757
Pass-Watch	—		—		6,042		4,079		16,918		15,481		2,273		128		44,921
Substandard	—		—		31,428		16,161		4,207		45,923		11,343		501		109,563

The following table presents the performing status of the Company’s loan portfolio not subject to risk rating by origination date:

	Term Loans Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
June 30, 2020
Commercial, Financial, Agricultural	$	—	$	—	$	26	$	397	$	356	$	2,690	$	9,241	$	52	$	12,762
Performing Loans	—		—		26		397		356		2,690		9,144		52		12,665
Non-Performing Loans	—		—		—		—		—		—		97		—		97
Real Estate - Construction	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Performing Loans	—		—		—		—		—		—		—		—		—
Non-Performing Loans	—		—		—		—		—		—		—		—		—
Real Estate - 1-4 Family Mortgage	$	—	$	376	$	3,535	$	45,995	$	35,822	$	182,420	$	90,241	$	2,336	$	360,725
Primary	$	—	$	252	$	2,292	$	40,863	$	33,404	$	167,492	$	461	$	137	$	244,901
Performing Loans	—		252		2,181		40,099		33,380		161,495		461		51		237,919
Non-Performing Loans	—		—		111		764		24		5,997		—		86		6,982
Home Equity	$	—	$	—	$	745	$	5,017	$	1,887	$	1,014	$	89,691	$	2,199	$	100,553
Performing Loans	—		—		745		5,017		1,887		947		89,148		1,506		99,250
Non-Performing Loans	—		—		—		—		—		67		543		693		1,303
Rental/Investment	$	—	$	124	$	—	$	70	$	211	$	12,368	$	89	$	—	$	12,862
Performing Loans	—		124		—		70		211		12,219		89		—		12,713
Non-Performing Loans	—		—		—		—		—		149		—		—		149
Land Development	$	—	$	—	$	498	$	45	$	320	$	1,546	$	—	$	—	$	2,409
Performing Loans	—		—		498		—		76		1,546		—		—		2,120

	Term Loans Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
Non-Performing Loans	—		—		—		45		244		—		—		—		289
Real Estate - Commercial Mortgage	$	—	$	342	$	641	$	925	$	1,026	$	36,776	$	1,714	$	—	$	41,424
Owner-Occupied	$	—	$	—	$	—	$	590	$	691	$	20,675	$	1,296	$	—	$	23,252
Performing Loans	—		—		—		590		691		20,471		1,296		—		23,048
Non-Performing Loans	—		—		—		—		—		204		—		—		204
Non-Owner Occupied	$	—	$	342	$	482	$	—	$	68	$	11,763	$	148	$	—	$	12,803
Performing Loans	—		342		482		—		68		11,617		148		—		12,657
Non-Performing Loans	—		—		—		—		—		146		—		—		146
Land Development	$	—	$	—	$	159	$	335	$	267	$	4,338	$	270	$	—	$	5,369
Performing Loans	—		—		159		335		267		4,190		270		—		5,221
Non-Performing Loans	—		—		—		—		—		148		—		—		148
Installment loans to individuals	$	—	$	—	$	47,185	$	18,982	$	1,474	$	4,848	$	3,514	$	48	$	76,051
Performing Loans	—		—		47,162		18,863		1,391		4,715		3,503		48		75,682
Non-Performing Loans	—		—		23		119		83		133		11		—		369
Total loans not subject to risk rating	$	—	$	718	$	51,387	$	66,299	$	38,678	$	226,734	$	104,710	$	2,436	$	490,962
Performing Loans	—		718		51,253		65,371		38,327		219,890		104,059		1,657		481,275
Non-Performing Loans	—		—		134		928		351		6,844		651		779		9,687

The following disclosures are presented under GAAP in effect prior to the adoption of CECL. The Company has included these disclosures to address the applicable prior period.

A discussion of the Company’s policies regarding internal risk-rating of loans is discussed above in Note 3, “Non Purchased Loans,” and is applicable to these tables. The following table presents the Company’s loan portfolio by internal risk-rating grades as of the date presented:

	Pass		Watch		Substandard		Total
December 31, 2019
Commercial, financial, agricultural	$	259,760	$	7,166	$	5,220	$	272,146
Real estate – construction	48,994		—		—		48,994
Real estate – 1-4 family mortgage	78,105		791		3,935		82,831
Real estate – commercial mortgage	909,513		56,334		15,835		981,682
Installment loans to individuals	—		—		—		—
Total	$	1,296,372	$	64,291	$	24,990	$	1,385,653

The following table presents the performing status of the Company’s loan portfolio not subject to risk rating as of the date presented:

	Performing		Non- Performing		Total
December 31, 2019
Commercial, financial, agricultural	$	13,935	$	—	$	13,935
Real estate – construction	1,725		—		1,725
Real estate – 1-4 family mortgage	394,476		3,638		398,114
Real estate – commercial mortgage	30,472		101		30,573
Installment loans to individuals	99,139		261		99,400
Total	$	539,747	$	4,000	$	543,747

The following disclosures are presented under GAAP in effect prior to the adoption of CECL that are no longer applicable or required. The Company has included these disclosures to address the applicable prior periods.

Impaired Loans

The Company’s former policies with respect to the determination of whether a loan is impaired and the treatment of such loans are described above in Note 3, “Non Purchased Loans.”

Loans formerly accounted for under ASC 310-20, and which are impaired loans recognized in conformity with ASC 310, segregated by class, were as follows as of the date presented:

	Unpaid Contractual Principal Balance		Recorded Investment With Allowance		Recorded Investment With No Allowance		Total Recorded Investment		Related Allowance
December 31, 2019
Commercial, financial, agricultural	$	2,979	$	1,837	$	901	$	2,738	$	212
Real estate – construction	3,269		2,499		772		3,271		16
Real estate – 1-4 family mortgage	7,464		2,801		3,772		6,573		17
Real estate – commercial mortgage	1,148		981		128		1,109		6
Installment loans to individuals	202		110		71		181		2
Totals	$	15,062	$	8,228	$	5,644	$	13,872	$	253

The following table presents the average recorded investment and interest income recognized on loans formerly accounted for under ASC 310-20 and which are impaired loans for the period presented:

	Three Months Ended				Six Months Ended
	June 30, 2019				June 30, 2019
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial, financial, agricultural	$	1,010	$	2	$	941	$	4
Real estate – construction	256		—		256		3
Real estate – 1-4 family mortgage	5,415		36		5,450		66
Real estate – commercial mortgage	2,082		12		2,109		25
Installment loans to individuals	370		—		372		—
Total	$	9,133	$	50	$	9,128	$	98

Loans formerly accounted for under ASC 310-30, and which are impaired loans recognized in conformity with ASC 310, segregated by class, were as follows as of the date presented:

	Unpaid Contractual Principal Balance		Recorded Investment With Allowance		Recorded Investment With No Allowance		Total Recorded Investment		Related Allowance
December 31, 2019
Commercial, financial, agricultural	$	49,162	$	3,695	$	25,843	$	29,538	$	292
Real estate – construction	882		—		863		863		—
Real estate – 1-4 family mortgage	42,969		10,061		25,482		35,543		291
Real estate – commercial mortgage	119,929		52,501		50,632		103,133		1,386
Installment loans to individuals	5,411		640		2,547		3,187		2
Totals	$	218,353	$	66,897	$	105,367	$	172,264	$	1,971

The following table presents the average recorded investment and interest income recognized on loans formerly accounted for under ASC 310-30 and which are impaired loans for the period presented:

	Three Months Ended				Six Months Ended
	June 30, 2019				June 30, 2019
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial, financial, agricultural	$	23,976	$	388	$	25,667	$	863
Real estate – construction	—		—		—		—
Real estate – 1-4 family mortgage	43,011		571		43,360		1,161
Real estate – commercial mortgage	122,455		1,674		123,526		3,474
Installment loans to individuals	3,560		95		3,780		201
Total	$	193,002	$	2,728	$	196,333	$	5,699

Loans Purchased with Deteriorated Credit Quality

Loans purchased in business combinations that exhibited, at the date of acquisition, evidence of deterioration of the credit quality since origination, such that it was probable that all contractually required payments would not be collected, were as follows as of the date presented:

	Total Purchased Credit Deteriorated Loans
December 31, 2019
Commercial, financial, agricultural	$	29,538
Real estate – construction	863
Real estate – 1-4 family mortgage	35,543
Real estate – commercial mortgage	103,133
Installment loans to individuals	3,187
Total	$	172,264