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Loans

9 Months Ended

Sep. 30, 2019

Loans and Leases Receivable Disclosure [Abstract]

The composition of the loan portfolio, by class of loan, as of September 30, 2019 and December 31, 2018 was as follows:



	September 30, 2019						December 31, 2018
(In thousands)	Loan Balance		Accrued Interest Receivable		Recorded Investment		Loan Balance		Accrued Interest Receivable		Recorded Investment
Commercial, financial and agricultural *	$	1,140,138	$	5,404	$	1,145,542	$	1,072,786	$	4,603	$	1,077,389
Commercial real estate *	1,599,697		5,767		1,605,464		1,283,045		4,750		1,287,795
Construction real estate:
Commercial	223,603		777		224,380		175,300		801		176,101
Mortgage	92,985		232		93,217		70,541		151		70,692
Installment	1,581		5		1,586		2,433		7		2,440
Residential real estate:
Commercial	465,656		1,199		466,855		429,730		1,150		430,880
Mortgage	1,174,421		1,529		1,175,950		1,134,278		1,227		1,135,505
HELOC	231,007		1,185		232,192		215,283		1,159		216,442
Installment	13,027		34		13,061		14,327		36		14,363
Consumer	1,430,400		3,946		1,434,346		1,292,136		3,756		1,295,892
Leases	31,132		30		31,162		2,273		26		2,299
Total loans	$	6,403,647	$	20,108	$	6,423,755	$	5,692,132	$	17,666	$	5,709,798

* Included within each of commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that are not broken out by class.

Loans are shown net of deferred origination fees, costs and unearned income of $15.9 million at September 30, 2019 and $12.5 million at December 31, 2018, which represented a net deferred income position at each date. At September 30, 2019 and December 31, 2018, loans included purchase accounting adjustments of $13.4 million and $4.4 million, respectively, which represented a net deferred income position at each date. This fair market value adjustment is expected to be recognized into interest income on a level yield basis over the remaining expected life of the loans.

Overdrawn deposit accounts of $2.0 million and $2.3 million had been reclassified to loans at September 30, 2019 and December 31, 2018, respectively, and are included in the commercial, financial and agricultural loan class above.

Credit Quality

The following tables present the recorded investment in nonaccrual loans, accruing TDRs, and loans past due 90 days or more and still accruing by class of loan as of September 30, 2019 and December 31, 2018:



	September 30, 2019
(In thousands)	Nonaccrual Loans		Accruing TDRs		Loans Past Due 90 Days or More and Accruing		Total Nonperforming Loans
Commercial, financial and agricultural	$	28,099	$	3,430	$	—	$	31,529
Commercial real estate	36,663		2,136		625		39,424
Construction real estate:
Commercial	1,786		82		235		2,103
Mortgage	27		7		—		34
Installment	73		6		12		91
Residential real estate:
Commercial	2,224		14		—		2,238
Mortgage	15,367		8,821		1,641		25,829
HELOC	1,700		1,021		56		2,777
Installment	512		1,915		—		2,427
Consumer	3,016		1,053		570		4,639
Leases	88		—		209		297
Total loans	$	89,555	$	18,485	$	3,348	$	111,388



	December 31, 2018
(In thousands)	Nonaccrual Loans		Accruing TDRs		Loans Past Due 90 Days or More and Accruing		Total Nonperforming Loans
Commercial, financial and agricultural	$	14,998	$	196	$	10	$	15,204
Commercial real estate	25,566		2,860		—		28,426
Construction real estate:
Commercial	1,866		—		—		1,866
Mortgage	—		15		20		35
Installment	19		9		—		28
Residential real estate:
Commercial	2,610		122		—		2,732
Mortgage	16,892		9,100		1,124		27,116
HELOC	2,158		1,028		9		3,195
Installment	468		1,049		24		1,541
Consumer	3,377		843		1,115		5,335
Leases	—		—		—		—
Total loans	$	67,954	$	15,222	$	2,302	$	85,478

The following table provides additional information regarding those nonaccrual loans and accruing TDR loans that were individually evaluated for impairment and those collectively evaluated for impairment, as of September 30, 2019 and December 31, 2018.



	September 30, 2019						December 31, 2018
(In thousands)	Nonaccrual and Accruing TDRs		Loans Individually Evaluated for Impairment		Loans Collectively Evaluated for Impairment		Nonaccrual and Accruing TDRs		Loans Individually Evaluated for Impairment		Loans Collectively Evaluated for Impairment
Commercial, financial and agricultural	$	31,529	$	31,485	$	44	$	15,194	$	15,120	$	74
Commercial real estate	38,799		38,799		—		28,426		28,426		—
Construction real estate:
Commercial	1,868		1,868		—		1,866		1,866		—
Mortgage	34		—		34		15		—		15
Installment	79		—		79		28		—		28
Residential real estate:
Commercial	2,238		2,238		—		2,732		2,732		—
Mortgage	24,188		—		24,188		25,992		—		25,992
HELOC	2,721		—		2,721		3,186		—		3,186
Installment	2,427		—		2,427		1,517		—		1,517
Consumer	4,069		—		4,069		4,220		—		4,220
Leases	88		88		—		—		—		—
Total loans	$	108,040	$	74,478	$	33,562	$	83,176	$	48,144	$	35,032

All of the loans individually evaluated for impairment were evaluated using the fair value of the underlying collateral or the present value of expected future cash flows as the measurement method.

The following table presents loans individually evaluated for impairment by class of loan, together with the related allowance recorded, as of September 30, 2019 and December 31, 2018.



	September 30, 2019						December 31, 2018
(In thousands)	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With no related allowance recorded:
Commercial, financial and agricultural	$	19,140	$	18,783	$	—	$	8,999	$	3,713	$	—
Commercial real estate	38,723		38,519		—		26,663		26,213		—
Construction real estate:
Commercial	4,682		1,868		—		4,679		1,866		—
Residential real estate:
Commercial	2,101		2,035		—		2,691		2,374		—
Leases	—		—		—		—		—		—

With an allowance recorded:
Commercial, financial and agricultural	14,839		12,702		2,917		13,736		11,407		2,169
Commercial real estate	280		280		30		2,255		2,213		86
Construction real estate:
Commercial	—		—		—		—		—		—
Residential real estate:
Commercial	203		203		111		358		358		18
Leases	88		88		25		—		—		—
Total	$	80,056	$	74,478	$	3,083	$	59,381	$	48,144	$	2,273

Management’s general practice is to charge down loans individually evaluated for impairment to the fair value of the underlying collateral. At September 30, 2019 and December 31, 2018, there were $3.5 million and $8.8 million, respectively, of partial charge-offs on loans individually evaluated for impairment with no related allowance recorded and $2.1 million and $2.4 million, respectively, of partial charge-offs on loans individually evaluated for impairment that also had a specific reserve allocated.

The allowance included specific reserves related to loans individually evaluated for impairment at September 30, 2019 and December 31, 2018 of $3.1 million and $2.3 million, respectively. These loans with specific reserves had a recorded investment of $13.3 million and $14.0 million as of September 30, 2019 and December 31, 2018, respectively.

Interest income on nonaccrual loans individually evaluated for impairment is recognized on a cash basis only when Park expects to receive the entire recorded investment of the loans. Interest income on accruing TDRs individually evaluated for impairment continues to be recorded on an accrual basis. The following table presents the average recorded investment and interest income recognized subsequent to impairment on loans individually evaluated for impairment as of and for the three and nine months ended September 30, 2019 and September 30, 2018:



	Three Months Ended September 30, 2019						Three Months Ended September 30, 2018
(In thousands)	Recorded Investment as of September 30, 2019		Average Recorded Investment		Interest Income Recognized		Recorded Investment as of September 30, 2018		Average Recorded Investment		Interest Income Recognized
Commercial, financial and agricultural	$	31,485	$	23,468	$	107	$	16,026	$	23,247	$	187
Commercial real estate	38,799		29,779		277		25,805		26,428		268
Construction real estate:
Commercial	1,868		1,922		1		2,016		2,246		4
Residential real estate:
Commercial	2,238		1,977		27		2,913		2,758		26
Leases	88		90		—		—		—		—
Total	$	74,478	$	57,236	$	412	$	46,760	$	54,679	$	485



	Nine Months Ended September 30, 2019							Nine Months Ended September 30, 2018
(In thousands)	Recorded Investment as of September 30, 2019		Average Recorded Investment		Interest Income Recognized			Recorded Investment as of September 30, 2018		Average Recorded Investment		Interest Income Recognized
Commercial, financial and agricultural	$	31,485	$	18,368	$	244	—	$	16,026	$	22,686	$	506
Commercial real estate	38,799		29,712		803		—	25,805		21,582		671
Construction real estate:
Commercial	1,868		2,176		23		—	2,016		1,661		31
Residential real estate:
Commercial	2,238		2,198		72		—	2,913		6,086		84
Leases	88		36		—			—		—		—
Total	$	74,478	$	52,490	$	1,142	—	$	46,760	$	52,015	$	1,292

The following tables present the aging of the recorded investment in past due loans as of September 30, 2019 and December 31, 2018 by class of loan.



	September 30, 2019
(In thousands)	Accruing Loans Past Due 30-89 Days		Past Due Nonaccrual Loans and Loans Past Due 90 Days or More and Accruing ⁽¹⁾		Total Past Due		Total Current ⁽²⁾		Total Recorded Investment
Commercial, financial and agricultural	$	2,570	$	10,602	$	13,172	$	1,132,370	$	1,145,542
Commercial real estate	673		1,354		2,027		1,603,437		1,605,464
Construction real estate:
Commercial	—		2,023		2,023		222,357		224,380
Mortgage	118		—		118		93,099		93,217
Installment	—		12		12		1,574		1,586
Residential real estate:
Commercial	40		791		831		466,024		466,855
Mortgage	10,196		9,508		19,704		1,156,246		1,175,950
HELOC	570		845		1,415		230,777		232,192
Installment	45		269		314		12,747		13,061
Consumer	5,758		1,572		7,330		1,427,016		1,434,346
Leases	51		209		260		30,902		31,162
Total loans	$	20,021	$	27,185	$	47,206	$	6,376,549	$	6,423,755

(1) Includes an aggregate of $3.3 million of loans past due 90 days or more and accruing. The remaining loans were past due nonaccrual loans.

(2) Includes an aggregate of $65.7 million of nonaccrual loans which were current in regards to contractual principal and interest payments.



	December 31, 2018
(in thousands)	Accruing Loans Past Due 30-89 Days		Past Due Nonaccrual Loans and Loans Past Due 90 Days or More and Accruing ⁽¹⁾		Total Past Due		Total Current ⁽²⁾		Total Recorded Investment
Commercial, financial and agricultural	$	4,786	$	1,375	$	6,161	$	1,071,228	$	1,077,389
Commercial real estate	780		3,584		4,364		1,283,431		1,287,795
Construction real estate:
Commercial	—		1,635		1,635		174,466		176,101
Mortgage	133		20		153		70,539		70,692
Installment	28		19		47		2,393		2,440
Residential real estate:
Commercial	683		1,104		1,787		429,093		430,880
Mortgage	13,210		8,553		21,763		1,113,742		1,135,505
HELOC	620		907		1,527		214,915		216,442
Installment	155		274		429		13,934		14,363
Consumer	9,524		2,131		11,655		1,284,237		1,295,892
Leases	—		—		—		2,299		2,299
Total loans	$	29,919	$	19,602	$	49,521	$	5,660,277	$	5,709,798

(1) Includes an aggregate of $2.3 million of loans past due 90 days or more and accruing. The remaining loans were past due nonaccrual loans.

(2) Includes an aggregate of $50.7 million of nonaccrual loans which were current in regards to contractual principal and interest payments.

Credit Quality Indicators

Management utilizes past due information as a credit quality indicator across the loan portfolio. Past due information as of September 30, 2019 and December 31, 2018 is included in the tables above. The past due information is the primary credit quality indicator within the following classes of loans: (1) mortgage loans and installment loans in the construction real estate segment; (2) mortgage loans, HELOC and installment loans in the residential real estate segment; and (3) consumer loans. The primary credit indicator for commercial loans is based on an internal grading system that grades commercial loans on a scale from 1 to 8. Credit grades are continuously monitored by the responsible loan officer and adjustments are made when appropriate. A grade of 1 indicates little or no credit risk and a grade of 8 is considered a loss. Commercial loans that are pass-rated (graded an 1 through a 4) are considered to be of acceptable credit risk. Commercial loans graded a 5 (special mention) are considered to be watch list credits and a higher loan loss reserve percentage is allocated to these loans. Loans classified as special mention have potential weaknesses that require management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of Park’s credit position at some future date. Commercial loans graded a 6 (substandard), also considered to be watch list credits, are considered to represent higher credit risk and, as a result, a higher loan loss reserve percentage is allocated to these loans. Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the obligor or the value of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that Park will sustain some loss if the deficiencies are not corrected. Commercial loans that are graded a 7 (doubtful) are shown as nonaccrual and Park generally charges these loans down to their fair value by taking a partial charge-off or recording a specific reserve. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Certain 6-rated loans and all 7-rated loans are placed on nonaccrual status and included within the impaired category. A loan is deemed impaired when management determines the borrower's ability to perform in accordance with the contractual loan agreement is in doubt. Any commercial loan graded an 8 (loss) is completely charged off.

The tables below present the recorded investment by loan grade at September 30, 2019 and December 31, 2018 for all commercial loans:



	September 30, 2019
(In thousands)	5 Rated		6 Rated		Nonaccrual and Accruing TDRs		Purchase Credit Impaired ⁽¹⁾		Pass-Rated		Recorded Investment
Commercial, financial and agricultural *	$	27,059	$	315	$	31,529	$	4,803	$	1,081,836	$	1,145,542
Commercial real estate *	11,429		1,246		38,799		10,595		1,543,395		1,605,464
Construction real estate:
Commercial	3,852		—		1,868		1,288		217,372		224,380
Residential real estate:
Commercial	1,001		33		2,238		1,926		461,657		466,855
Leases	—		—		88		568		30,506		31,162
Total commercial loans	$	43,341	$	1,594	$	74,522	$	19,180	$	3,334,766	$	3,473,403

* Included within each of commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that are not broken out by class.

(1) Excludes loans acquired with deteriorated credit quality which are nonaccrual or TDRs due to additional credit deterioration or modification post acquisition. These loans had a recorded investment of $11,000 at September 30, 2019.



	December 31, 2018
(In thousands)	5 Rated		6 Rated		Nonaccrual and Accruing TDRs		Purchase Credit Impaired ⁽¹⁾		Pass-Rated		Recorded Investment
Commercial, financial and agricultural *	$	11,509	$	444	$	15,194	$	148	$	1,050,094	$	1,077,389
Commercial real estate *	2,707		—		28,426		3,059		1,253,603		1,287,795
Construction real estate:
Commercial	1,560		—		1,866		503		172,172		176,101
Residential real estate:
Commercial	272		41		2,732		251		427,584		430,880
Leases	—		—		—		—		2,299		2,299
Total Commercial Loans	$	16,048	$	485	$	48,218	$	3,961	$	2,905,752	$	2,974,464

* Included within each of commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that are not broken out by class.

Loans and Leases Acquired with Deteriorated Credit Quality

In conjunction with the NewDominion Bank acquisition, Park acquired loans with a book value of $277.9 million as of July 1, 2018. These loans were recorded at the initial fair value of $272.8 million. Loans acquired with deteriorated credit quality with a book value of $5.1 million were recorded at the initial fair value of $4.9 million. The carrying amount of loans acquired with deteriorated credit quality at September 30, 2019 and December 31, 2018 was $3.3 million and $4.4 million, respectively, while the outstanding customer balance was $3.4 million and $4.6 million, respectively. At September 30, 2019 and December 31, 2018, no allowance had been recognized related to the acquired impaired loans.

In conjunction with the Carolina Alliance acquisition, Park acquired loans and leases with a book value of $589.7 million as of April 1, 2019. These loans and leases were recorded at the initial fair value of $578.6 million. Loans and leases acquired with deteriorated credit quality with a book value of $21.8 million were recorded at the initial fair value of $19.9 million. The carrying amount of loans and leases acquired with deteriorated credit quality at September 30, 2019 was $17.2 million, while the outstanding customer balance was $18.9 million. At September 30, 2019, no allowance had been recognized related to the acquired impaired loans and leases.

Troubled Debt Restructurings

Management classifies loans as TDRs when a borrower is experiencing financial difficulties and Park has granted a concession to the borrower as part of a modification or in the loan renewal process. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of the borrower's debt in the foreseeable future without the modification. This evaluation is performed in accordance with the Company’s internal underwriting policy. Management’s policy is to modify loans by extending the term or by granting a temporary or permanent contractual interest rate below the market rate, not by forgiving debt. A court's discharge of a borrower's debt in a Chapter 7 bankruptcy is considered a concession when the borrower does not reaffirm the discharged debt.

Certain loans which were modified during the three-month and nine-month periods ended September 30, 2019 and September 30, 2018 did not meet the definition of a TDR as the modification was a delay in a payment that was considered to be insignificant. Management considers a forbearance period of up to three months or a delay in payment of up to 30 days to be insignificant. TDRs may be classified as accruing if the borrower has been current for a period of at least six months with respect to loan payments and management expects that the borrower will be able to continue to make payments in accordance with the terms of the restructured note. Management reviews all accruing TDRs quarterly to ensure payments continue to be made in accordance with the modified terms.

Quarterly, management reviews renewals/modifications of loans previously identified as TDRs to consider if it is appropriate to remove the TDR classification. If the borrower is no longer experiencing financial difficulty and the renewal/modification did not contain a concessionary interest rate or other concessionary terms and the terms of the renewal/modification are considered to be market terms based on the current risk characteristics of the borrower, management considers the potential removal of the TDR classification. If deemed appropriate, the TDR classification is removed if the borrower has complied with the terms of the loan at the date of the renewal/modification and there was a reasonable expectation that the borrower would continue to

comply with the terms of the loan subsequent to the date of the renewal/modification. The majority of these TDRs were originally considered restructurings in a prior year as a result of a renewal/modification with an interest rate that was not commensurate with the risk of the underlying loan at the time of the renewal/modification. The TDR classification was removed on $15,000 of loans during the three-month period ended September 30, 2019 and on $38,000 of loans during the nine-month period ended September 30, 2019. The TDR classification was removed on $0.2 million of loans during the three-month period ended September 30, 2018 and on $2.4 million of loans during the nine-month period ended September 30, 2018.

At September 30, 2019 and December 31, 2018, there were $29.1 million and $24.6 million, respectively, of TDRs included in the nonaccrual loan totals. At September 30, 2019 and December 31, 2018, $17.2 million and $19.2 million, respectively, of these nonaccrual TDRs were performing in accordance with the terms of the restructured note. As of September 30, 2019 and December 31, 2018, loans with a recorded investment of $18.5 million and $15.2 million, respectively, were included in accruing TDR loan totals. Management will continue to review the restructured loans and may determine it is appropriate to move certain nonaccrual TDRs to accrual status in the future.

At September 30, 2019 and December 31, 2018, Park had commitments to lend $3.4 million and $0.3 million, respectively, of additional funds to borrowers whose outstanding loan terms had been modified in a TDR.

At both September 30, 2019 and December 31, 2018, there were $1.2 million of specific reserves related to TDRs. Modifications made in 2019 and 2018 were largely the result of renewals and extending the maturity date of the loans at terms consistent with the original notes. These modifications were deemed to be TDRs primarily due to Park’s conclusion that the borrower would likely not have qualified for similar terms through another lender. Many of the modifications deemed to be TDRs were previously identified as impaired loans, and thus were also previously evaluated for impairment under Accounting Standards Codification (ASC) 310. There were no additional specific reserves recorded during the three-month period ended September 30, 2019 as a result of TDRs identified in the period. Additional specific reserves of $150,000 were recorded during the three-month period ended September 30, 2018 as a result of TDRs identified in the period. Additional specific reserves of $1,000 and $160,000 were recorded during the nine-month periods ended September 30, 2019 and September 30, 2018, respectively, as a result of TDRs identified in the respective periods.

The terms of certain other loans were modified during the three-month and nine-month periods ended September 30, 2019 and September 30, 2018 that did not meet the definition of a TDR. There were $0.4 million of substandard commercial loans modified during the three-month period ended September 30, 2019 which did not meet the definition of a TDR. Substandard commercial loans modified during the nine-month period ended September 30, 2019 which did not meet the definition of a TDR had a total recorded investment of $0.6 million. There were no substandard commercial loans modified during the three-month period ended September 30, 2018 which did not meet the definition of a TDR. Substandard commercial loans modified during the nine-month period ended September 30, 2018 which did not meet the definition of a TDR had a total recorded investment of $0.2 million. Consumer loans modified during the three-month and nine-month periods ended September 30, 2019 which did not meet the definition of a TDR had a total recorded investment of $11.9 million and $21.4 million, respectively. Consumer loans with a recorded investment of $6.6 million and $17.0 million were modified during the three-month and nine-month periods ended September 30, 2018, respectively, and did not meet the definition of a TDR. Many of these loans were to borrowers who were not experiencing financial difficulties but who were looking to reduce their cost of funds.

The following tables detail the number of contracts modified as TDRs during the three-month periods ended September 30, 2019 and September 30, 2018, as well as the recorded investment of these contracts at September 30, 2019 and September 30, 2018. The recorded investment pre- and post-modification is generally the same due to the fact that Park does not typically forgive principal.



	Three Months Ended September 30, 2019
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Total Recorded Investment
Commercial, financial and agricultural	8	$	752	$	5,002	$	5,754
Commercial real estate	1	—		241		241
Construction real estate:
Commercial	1	82		—		82
Mortgage	—	—		—		—
Installment	—	—		—		—
Residential real estate:
Commercial	1	13		—		13
Mortgage	4	286		215		501
HELOC	6	31		107		138
Installment	9	407		14		421
Consumer	77	174		542		716
Total loans	107	$	1,745	$	6,121	$	7,866



	Three Months Ended September 30, 2018
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Total Recorded Investment
Commercial, financial and agricultural	8	$	22	$	552	$	574
Commercial real estate	3	—		1,154		1,154
Construction real estate:
Commercial	—	—		—		—
Mortgage	—	—		—		—
Installment	—	—		—		—
Residential real estate:
Commercial	2	55		249		304
Mortgage	4	—		246		246
HELOC	10	453		16		469
Installment	8	336		—		336
Consumer	71	31		590		621
Total loans	106	$	897	$	2,807	$	3,704

Of those loans which were modified and determined to be a TDR during the three-month period ended September 30, 2019, $0.6 million were on nonaccrual status as of December 31, 2018. Of those loans which were modified and determined to be a TDR during the three-month period ended September 30, 2018, $0.1 million were on nonaccrual status as of December 31, 2017.

The following tables detail the number of contracts modified as TDRs during the nine-month periods ended September 30, 2019 and September 30, 2018, as well as the recorded investment of these contracts at September 30, 2019 and September 30, 2018. The recorded investment pre- and post-modification is generally the same due to the fact that Park does not typically forgive principal.



	Nine Months Ended September 30, 2019
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Total Recorded Investment
Commercial, financial and agricultural	24	$	3,237	$	6,059	$	9,296
Commercial real estate	5	—		3,236		3,236
Construction real estate:
Commercial	2	82		—		82
Mortgage	1	—		—		—
Installment	—	—		—		—
Residential real estate:
Commercial	2	13		36		49
Mortgage	18	340		673		1,013
HELOC	14	121		243		364
Installment	25	951		52		1,003
Consumer	251	199		987		1,186
Total loans	342	$	4,943	$	11,286	$	16,229



	Nine Months Ended September 30, 2018
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Total Recorded Investment
Commercial, financial and agricultural	16	$	208	$	592	$	800
Commercial real estate	10	447		1,412		1,859
Construction real estate:
Commercial	1	—		—		—
Mortgage	—	—		—		—
Installment	2	12		—		12
Residential real estate:
Commercial	2	55		249		304
Mortgage	17	90		972		1,062
HELOC	18	735		125		860
Installment	17	437		16		453
Consumer	206	59		1,157		1,216
Total loans	289	$	2,043	$	4,523	$	6,566

Of those loans which were modified and determined to be a TDR during the nine-month period ended September 30, 2019, $1.8 million were on nonaccrual status as of December 31, 2018. Of those loans which were modified and determined to be a TDR during the nine-month period ended September 30, 2018, $0.5 million were on nonaccrual status as of December 31, 2017.

The following tables present the recorded investment in loans which were modified as TDRs within the previous 12 months and for which there was a payment default during the three-month and nine-month periods ended September 30, 2019 and September 30, 2018, respectively. For these tables, a loan is considered to be in default when it becomes 30 days contractually past due under the modified terms. The additional allowance for loan loss resulting from the defaults on TDR loans was immaterial.



	Three Months Ended September 30, 2019			Three Months Ended September 30, 2018
(In thousands)	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
Commercial, financial and agricultural	2	$	2	1	$	1
Commercial real estate	—	—		—	—
Construction real estate:
Commercial	—	—		—	—
Mortgage	—	—		—	—
Installment	—	—		—	—
Residential real estate:
Commercial	—	—		—	—
Mortgage	4	257		8	688
HELOC	5	135		3	108
Installment	2	66		—	—
Consumer	51	477		40	315
Leases	—	—		—	—
Total loans	64	$	937	52	$	1,112

Of the $0.9 million in modified TDRs which defaulted during the three-month period ended September 30, 2019, $48,000 were accruing loans and $0.9 million were nonaccrual loans. Of the $1.1 million in modified TDRs which defaulted during the three-month period ended September 30, 2018, $67,000 were accruing loans and $1.0 million were nonaccrual loans.



	Nine Months Ended September 30, 2019			Nine Months Ended September 30, 2018
(In thousands)	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
Commercial, financial and agricultural	3	$	65	1	$	1
Commercial real estate	—	—		—	—
Construction real estate:
Commercial	—	—		—	—
Mortgage	—	—		—	—
Installment	—	—		—	—
Residential real estate:
Commercial	1	13		—	—
Mortgage	7	370		9	789
HELOC	7	165		3	108
Installment	2	66		—	—
Consumer	58	530		50	392
Leases	—	—		—	—
Total loans	78	$	1,209	63	$	1,290

Of the $1.2 million in modified TDRs which defaulted during the nine-month period ended September 30, 2019, $87,000 were accruing loans and $1.1 million were nonaccrual loans. Of the $1.3 million in modified TDRs which defaulted during the nine-month period ended September 30, 2018, $67,000 were accruing loans and $1.2 million were nonaccrual loans.