Loans | Loans The following table summarizes the components of First Guaranty's loan portfolio as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 (in thousands except for %) Balance As % of Category Balance As % of Category Real Estate: Construction & land development $ 148,156 11.4 % $ 124,644 10.1 % Farmland 17,414 1.3 % 18,401 1.5 % 1- 4 Family 185,234 14.2 % 172,760 14.1 % Multifamily 44,104 3.4 % 42,918 3.5 % Non-farm non-residential 604,523 46.4 % 586,263 47.7 % Total Real Estate 999,431 76.7 % 944,986 76.9 % Non-Real Estate: Agricultural 26,587 2.0 % 23,108 1.9 % Commercial and industrial 199,768 15.3 % 200,877 16.4 % Consumer and other 78,321 6.0 % 59,443 4.8 % Total Non-Real Estate 304,676 23.3 % 283,428 23.1 % Total Loans Before Unearned Income 1,304,107 100.0 % 1,228,414 100.0 % Unearned income (3,554 ) (3,146 ) Total Loans Net of Unearned Income $ 1,300,553 $ 1,225,268 The following table summarizes fixed and floating rate loans by contractual maturity, excluding nonaccrual loans, as of June 30, 2019 and December 31, 2018 unadjusted for scheduled principal payments, prepayments, or repricing opportunities. The average life of the loan portfolio may be substantially less than the contractual terms when these adjustments are considered. June 30, 2019 December 31, 2018 (in thousands) Fixed Floating Total Fixed Floating Total One year or less $ 139,146 $ 78,717 $ 217,863 $ 108,160 $ 80,895 $ 189,055 More than one to five years 424,191 320,675 744,866 393,344 287,737 681,081 More than five to 15 years 110,593 78,992 189,585 118,715 86,779 205,494 Over 15 years 97,380 45,065 142,445 85,611 58,430 144,041 Subtotal $ 771,310 $ 523,449 1,294,759 $ 705,830 $ 513,841 1,219,671 Nonaccrual loans 9,348 8,743 Total Loans Before Unearned Income 1,304,107 1,228,414 Unearned income (3,554 ) (3,146 ) Total Loans Net of Unearned Income $ 1,300,553 $ 1,225,268 As of June 30, 2019 , $47.4 million of floating rate loans were at their interest rate floor. At December 31, 2018 , $27.7 million of floating rate loans were at the interest rate floor. Nonaccrual loans have been excluded from these totals. The following tables present the age analysis of past due loans at June 30, 2019 and December 31, 2018 : As of June 30, 2019 (in thousands) 30-89 Days Past Due 90 Days or Greater Total Past Due Current Total Loans Recorded Investment Real Estate: Construction & land development $ 746 $ 402 $ 1,148 $ 147,008 $ 148,156 $ — Farmland 3,157 1,337 4,494 12,920 17,414 — 1- 4 family 3,014 1,738 4,752 180,482 185,234 60 Multifamily — — — 44,104 44,104 — Non-farm non-residential 10,142 1,077 11,219 593,304 604,523 468 Total Real Estate 17,059 4,554 21,613 977,818 999,431 528 Non-Real Estate: Agricultural 24 5,165 5,189 21,398 26,587 242 Commercial and industrial 558 489 1,047 198,721 199,768 127 Consumer and other 3,682 56 3,738 74,583 78,321 19 Total Non-Real Estate 4,264 5,710 9,974 294,702 304,676 388 Total Loans Before Unearned Income $ 21,323 $ 10,264 $ 31,587 $ 1,272,520 $ 1,304,107 $ 916 Unearned income (3,554 ) Total Loans Net of Unearned Income $ 1,300,553 As of December 31, 2018 (in thousands) 30-89 Days Past Due 90 Days or Greater Total Past Due Current Total Loans Recorded Investment Real Estate: Construction & land development $ 936 $ 311 $ 1,247 $ 123,397 $ 124,644 $ — Farmland — 1,293 1,293 17,108 18,401 — 1- 4 family 4,333 2,272 6,605 166,155 172,760 26 Multifamily 648 — 648 42,270 42,918 — Non-farm non-residential 4,897 864 5,761 580,502 586,263 — Total Real Estate 10,814 4,740 15,554 929,432 944,986 26 Non-Real Estate: Agricultural 528 3,651 4,179 18,929 23,108 — Commercial and industrial 742 370 1,112 199,765 200,877 53 Consumer and other 537 127 664 58,779 59,443 66 Total Non-Real Estate 1,807 4,148 5,955 277,473 283,428 119 Total Loans Before Unearned Income $ 12,621 $ 8,888 $ 21,509 $ 1,206,905 $ 1,228,414 $ 145 Unearned income (3,146 ) Total Loans Net of Unearned Income $ 1,225,268 The tables above include $9.3 million and $8.7 million of nonaccrual loans at June 30, 2019 and December 31, 2018 , respectively. See the tables below for more detail on nonaccrual loans. The following is a summary of nonaccrual loans by class at the dates indicated: (in thousands) As of June 30, 2019 As of December 31, 2018 Real Estate: Construction & land development $ 402 $ 311 Farmland 1,337 1,293 1- 4 family 1,678 2,246 Multifamily — — Non-farm non-residential 609 864 Total Real Estate 4,026 4,714 Non-Real Estate: Agricultural 4,923 3,651 Commercial and industrial 362 317 Consumer and other 37 61 Total Non-Real Estate 5,322 4,029 Total Nonaccrual Loans $ 9,348 $ 8,743 The following table identifies the credit exposure of the loan portfolio, including loans acquired with deteriorated credit quality, by specific credit ratings as of the dates indicated: As of June 30, 2019 As of December 31, 2018 (in thousands) Pass Special Mention Substandard Doubtful Total Pass Special Mention Substandard Doubtful Total Real Estate: Construction & land development $ 140,026 $ 5,521 $ 2,609 $ — $ 148,156 $ 116,062 $ 5,698 $ 2,884 $ — $ 124,644 Farmland 12,843 3,166 1,405 — 17,414 13,151 3,888 1,362 — 18,401 1- 4 family 173,993 4,462 6,779 — 185,234 160,581 2,815 9,364 — 172,760 Multifamily 36,111 810 7,183 — 44,104 35,554 — 7,364 — 42,918 Non-farm non-residential 587,283 2,881 14,359 — 604,523 564,993 2,888 17,859 523 586,263 Total Real Estate 950,256 16,840 32,335 — 999,431 890,341 15,289 38,833 523 944,986 Non-Real Estate: Agricultural 21,262 43 5,282 — 26,587 19,050 43 4,015 — 23,108 Commercial and industrial 179,978 16,096 3,694 — 199,768 186,176 10,930 3,771 — 200,877 Consumer and other 78,046 178 97 — 78,321 59,119 151 173 — 59,443 Total Non-Real Estate 279,286 16,317 9,073 — 304,676 264,345 11,124 7,959 — 283,428 Total Loans Before Unearned Income $ 1,229,542 $ 33,157 $ 41,408 $ — 1,304,107 $ 1,154,686 $ 26,413 $ 46,792 $ 523 1,228,414 Unearned income (3,554 ) (3,146 ) Total Loans Net of Unearned Income $ 1,300,553 $ 1,225,268 Purchased Impaired Loans As part of the acquisition of Premier Bancshares, Inc. ("Premier") on June 16, 2017, First Guaranty purchased credit impaired loans for which there was, at acquisition, evidence of deterioration of credit quality since their origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans is as follows at June 30, 2019 and December 31, 2018 . (in thousands) As of June 30, 2019 As of December 31, 2018 Real Estate: Construction & land development $ — $ — Farmland — 1 1- 4 family 46 48 Multifamily — — Non-farm non-residential 2,029 2,301 Total Real Estate 2,075 2,350 Non-Real Estate: Agricultural — — Commercial and industrial 896 909 Consumer and other — — Total Non-Real Estate 896 909 Total $ 2,971 $ 3,259 Where First Guaranty can reasonably estimate the cash flows expected to be collected on the loans, a portion of the purchase discount is allocated to an accretable yield adjustment based upon the present value of the future estimated cash flows versus the current carrying value of the loan and the accretable yield portion is being recognized as interest income over the remaining life of the loan. Where First Guaranty cannot reasonably estimate the cash flows expected to be collected on the loans, it has decided to account for those loans using the cost recovery method of income recognition. As such, no portion of a purchase discount adjustment has been determined to meet the definition of an accretable yield adjustment on those loans accounted for using the cost recovery method. If, in the future, cash flows from the borrower(s) can be reasonably estimated, a portion of the purchase discount would be allocated to an accretable yield adjustment based upon the present value of the future estimated cash flows versus the current carrying value of the loan and the accretable yield portion would be recognized as interest income over the remaining life of the loan. Until such accretable yield can be calculated, under the cost recovery method of income recognition, all payments will be used to reduce the carrying value of the loan and no income will be recognized on the loan until the carrying value is reduced to zero. The accretable yield, or income expected to be collected, on the purchased loans above is as follows for the six months ended June 30, 2019 and 2018 . (in thousands) Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 Balance, beginning of period $ 613 $ 1,031 Acquisition accretable yield — — Accretion (699 ) (311 ) Net transfers from nonaccretable difference to accretable yield 498 — Balance, end of period $ 412 $ 720 |