Loans | Loans The following table summarizes the components of First Guaranty's loan portfolio as of September 30, 2019 and December 31, 2018 : September 30, 2019 December 31, 2018 (in thousands except for %) Balance As % of Category Balance As % of Category Real Estate: Construction & land development $ 157,980 12.2 % $ 124,644 10.1 % Farmland 16,484 1.3 % 18,401 1.5 % 1- 4 Family 187,772 14.5 % 172,760 14.1 % Multifamily 22,459 1.7 % 42,918 3.5 % Non-farm non-residential 585,177 45.1 % 586,263 47.7 % Total Real Estate 969,872 74.8 % 944,986 76.9 % Non-Real Estate: Agricultural 29,193 2.3 % 23,108 1.9 % Commercial and industrial 213,993 16.5 % 200,877 16.4 % Consumer and other 83,029 6.4 % 59,443 4.8 % Total Non-Real Estate 326,215 25.2 % 283,428 23.1 % Total Loans Before Unearned Income 1,296,087 100.0 % 1,228,414 100.0 % Unearned income (3,176 ) (3,146 ) Total Loans Net of Unearned Income $ 1,292,911 $ 1,225,268 The following table summarizes fixed and floating rate loans by contractual maturity, excluding nonaccrual loans, as of September 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. September 30, 2019 December 31, 2018 (in thousands) Fixed Floating Total Fixed Floating Total One year or less $ 135,678 $ 103,997 $ 239,675 $ 108,160 $ 80,895 $ 189,055 More than one to five years 421,066 284,296 705,362 393,344 287,737 681,081 More than five to 15 years 107,657 74,764 182,421 118,715 86,779 205,494 Over 15 years 108,308 49,423 157,731 85,611 58,430 144,041 Subtotal $ 772,709 $ 512,480 1,285,189 $ 705,830 $ 513,841 1,219,671 Nonaccrual loans 10,898 8,743 Total Loans Before Unearned Income 1,296,087 1,228,414 Unearned income (3,176 ) (3,146 ) Total Loans Net of Unearned Income $ 1,292,911 $ 1,225,268 As of September 30, 2019 , $100.1 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 September 30, 2019 and December 31, 2018 : As of September 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 $ 1,490 $ 390 $ 1,880 $ 156,100 $ 157,980 $ — Farmland — 1,337 1,337 15,147 16,484 — 1- 4 family 2,554 1,977 4,531 183,241 187,772 2 Multifamily — — — 22,459 22,459 — Non-farm non-residential 8,777 929 9,706 575,471 585,177 184 Total Real Estate 12,821 4,633 17,454 952,418 969,872 186 Non-Real Estate: Agricultural 8 4,842 4,850 24,343 29,193 — Commercial and industrial 1,920 478 2,398 211,595 213,993 24 Consumer and other 300 1,283 1,583 81,446 83,029 128 Total Non-Real Estate 2,228 6,603 8,831 317,384 326,215 152 Total Loans Before Unearned Income $ 15,049 $ 11,236 $ 26,285 $ 1,269,802 $ 1,296,087 $ 338 Unearned income (3,176 ) Total Loans Net of Unearned Income $ 1,292,911 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 $10.9 million and $8.7 million of nonaccrual loans at September 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 September 30, 2019 As of December 31, 2018 Real Estate: Construction & land development $ 390 $ 311 Farmland 1,337 1,293 1- 4 family 1,975 2,246 Multifamily — — Non-farm non-residential 745 864 Total Real Estate 4,447 4,714 Non-Real Estate: Agricultural 4,842 3,651 Commercial and industrial 454 317 Consumer and other 1,155 61 Total Non-Real Estate 6,451 4,029 Total Nonaccrual Loans $ 10,898 $ 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 September 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 $ 150,991 $ 5,227 $ 1,762 $ — $ 157,980 $ 116,062 $ 5,698 $ 2,884 $ — $ 124,644 Farmland 11,903 3,177 1,404 — 16,484 13,151 3,888 1,362 — 18,401 1- 4 family 176,252 4,662 6,858 — 187,772 160,581 2,815 9,364 — 172,760 Multifamily 14,486 807 7,166 — 22,459 35,554 — 7,364 — 42,918 Non-farm non-residential 570,496 225 14,456 — 585,177 564,993 2,888 17,859 523 586,263 Total Real Estate 924,128 14,098 31,646 — 969,872 890,341 15,289 38,833 523 944,986 Non-Real Estate: Agricultural 23,969 50 5,174 — 29,193 19,050 43 4,015 — 23,108 Commercial and industrial 193,653 16,799 3,541 — 213,993 186,176 10,930 3,771 — 200,877 Consumer and other 81,673 138 1,218 — 83,029 59,119 151 173 — 59,443 Total Non-Real Estate 299,295 16,987 9,933 — 326,215 264,345 11,124 7,959 — 283,428 Total Loans Before Unearned Income $ 1,223,423 $ 31,085 $ 41,579 $ — 1,296,087 $ 1,154,686 $ 26,413 $ 46,792 $ 523 1,228,414 Unearned income (3,176 ) (3,146 ) Total Loans Net of Unearned Income $ 1,292,911 $ 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 September 30, 2019 and December 31, 2018 . (in thousands) As of September 30, 2019 As of December 31, 2018 Real Estate: Construction & land development $ — $ — Farmland — 1 1- 4 family 47 48 Multifamily — — Non-farm non-residential 2,020 2,301 Total Real Estate 2,067 2,350 Non-Real Estate: Agricultural — — Commercial and industrial 886 909 Consumer and other — — Total Non-Real Estate 886 909 Total $ 2,953 $ 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 nine months ended September 30, 2019 and 2018 . (in thousands) Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Balance, beginning of period $ 613 $ 1,031 Acquisition accretable yield — — Accretion (746 ) (368 ) Net transfers from nonaccretable difference to accretable yield 498 — Balance, end of period $ 365 $ 663 |