Non Purchased Loans | Non Purchased Loans (In Thousands, Except Number of Loans) For purposes of this Note 4, all references to “loans” mean non purchased loans. The following is a summary of non purchased loans and leases at December 31: 2016 2015 Commercial, financial, agricultural $ 589,290 $ 485,407 Lease financing 49,250 35,978 Real estate – construction 483,926 291,701 Real estate – 1-4 family mortgage 1,425,730 1,204,228 Real estate – commercial mortgage 2,075,137 1,729,049 Installment loans to individuals 92,648 85,234 Gross loans 4,715,981 3,831,597 Unearned income (2,409 ) (1,163 ) Loans, net of unearned income 4,713,572 3,830,434 Past Due and Nonaccrual Loans The following table provides an aging of past due and nonaccrual 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 December 31, 2016 Commercial, financial, agricultural $ 811 $ 720 $ 586,730 $ 588,261 $ — $ 932 $ 97 $ 1,029 $ 589,290 Lease financing 193 — 48,919 49,112 — 138 — 138 49,250 Real estate – construction 995 — 482,931 483,926 — — — — 483,926 Real estate – 1-4 family mortgage 6,189 1,136 1,414,254 1,421,579 161 1,222 2,768 4,151 1,425,730 Real estate – commercial mortgage 2,283 99 2,066,821 2,069,203 580 2,778 2,576 5,934 2,075,137 Installment loans to individuals 324 124 92,179 92,627 — 21 — 21 92,648 Unearned income — — (2,409 ) (2,409 ) — — — — (2,409 ) Total $ 10,795 $ 2,079 $ 4,689,425 $ 4,702,299 $ 741 $ 5,091 $ 5,441 $ 11,273 $ 4,713,572 December 31, 2015 Commercial, financial, agricultural $ 176 $ 38 $ 485,095 $ 485,309 $ 30 $ 68 $ — $ 98 $ 485,407 Lease financing — — 35,978 35,978 — — — — 35,978 Real estate – construction 68 — 291,633 291,701 — — — — 291,701 Real estate – 1-4 family mortgage 4,461 807 1,192,318 1,197,586 370 1,857 4,415 6,642 1,204,228 Real estate – commercial mortgage 2,391 425 1,719,329 1,722,145 568 1,668 4,668 6,904 1,729,049 Installment loans to individuals 167 56 85,011 85,234 — — — — 85,234 Unearned income — — (1,163 ) (1,163 ) — — — — (1,163 ) Total $ 7,263 $ 1,326 $ 3,808,201 $ 3,816,790 $ 968 $ 3,593 $ 9,083 $ 13,644 $ 3,830,434 Restructured loans that are 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 was one restructured loan totaling $69 that was contractually 90 days past due or more and still accruing at December 31, 2016 . There was one restructured loan totaling $38 that was contractually 90 days past due or more and still accruing at December 31, 2015 . The outstanding balance of restructured loans on nonaccrual status was $6,164 and $8,739 at December 31, 2016 and 2015 , respectively. Impaired Loans Impaired loans recognized in conformity with ASC 310-20, segregated by class, were as follows as of the dates and periods presented: As of December 31, 2016 Year Ended December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Commercial, financial, agricultural $ 1,175 $ 1,539 $ 136 $ 856 $ 28 Lease financing — — — — — Real estate – construction 517 517 1 469 26 Real estate – 1-4 family mortgage 9,207 10,823 1,091 9,603 225 Real estate – commercial mortgage 10,053 13,667 2,397 11,180 305 Installment loans to individuals 87 87 1 98 2 Total $ 21,039 $ 26,633 $ 3,626 $ 22,206 $ 586 With no related allowance recorded: Commercial, financial, agricultural $ — $ 38 $ — $ 24 $ — Lease financing — — — — — Real estate – construction — — — — — Real estate – 1-4 family mortgage — — — 41 — Real estate – commercial mortgage 568 1,340 — 938 38 Installment loans to individuals — — — — — Total $ 568 $ 1,378 $ — $ 1,003 $ 38 Totals $ 21,607 $ 28,011 $ 3,626 $ 23,209 $ 624 As of December 31, 2015 Year Ended December 31, 2015 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Commercial, financial, agricultural $ 344 $ 531 $ 6 $ 508 $ 17 Lease financing — — — — — Real estate – construction — — — — — Real estate – 1-4 family mortgage 15,995 17,518 4,474 16,751 366 Real estate – commercial mortgage 15,626 18,918 2,906 17,059 469 Installment loans to individuals 67 67 — 67 2 Total $ 32,032 $ 37,034 $ 7,386 $ 34,385 $ 854 With no related allowance recorded: Commercial, financial, agricultural $ 12 $ 760 $ — $ 43 $ — Lease financing — — — — — Real estate – construction — — — — — Real estate – 1-4 family mortgage — — — — — Real estate – commercial mortgage — — — — — Installment loans to individuals — — — — — Total $ 12 $ 760 $ — $ 43 $ — Totals $ 32,044 $ 37,794 $ 7,386 $ 34,428 $ 854 The average recorded investment in impaired loans for the year ended December 31, 2014 was $48,351 . Interest income recognized on impaired loans for the year ended December 31, 2014 was $1,942 . Restructured Loans The following table presents restructured loans segregated by class as of the dates presented: Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment December 31, 2016 Commercial, financial, agricultural — $ — $ — Lease financing — — — Real estate – construction 1 510 518 Real estate – 1-4 family mortgage 43 4,498 4,105 Real estate – commercial mortgage 8 4,324 2,758 Installment loans to individuals 1 66 66 Total 53 $ 9,398 $ 7,447 December 31, 2015 Commercial, financial, agricultural 1 $ 257 $ 257 Lease financing — — — Real estate – construction — — — Real estate – 1-4 family mortgage 46 5,249 4,754 Real estate – commercial mortgage 11 6,365 5,174 Installment loans to individuals 1 67 67 Total 59 $ 11,938 $ 10,252 Changes in the Company’s restructured loans are set forth in the table below. Number of Loans Recorded Investment Totals at January 1, 2015 49 $ 13,879 Additional loans with concessions 39 10,077 Reductions due to: Reclassified as nonperforming (6 ) (2,870 ) Paid in full (21 ) (8,127 ) Charge-offs (1 ) (56 ) Transfer to other real estate owned — — Principal paydowns — (428 ) Lapse of concession period — — TDR reclassified as performing loan (1 ) $ (2,223 ) Totals at December 31, 2015 59 $ 10,252 Additional loans with concessions 16 2,075 Reductions due to: Reclassified as nonperforming (4 ) (1,406 ) Paid in full (16 ) (2,233 ) Charge-offs (1 ) (275 ) Transfer to other real estate owned (1 ) (51 ) Principal paydowns — (915 ) Lapse of concession period — — TDR reclassified as performing loan — $ — Totals at December 31, 2016 53 $ 7,447 The allocated allowance for loan losses attributable to restructured loans was $283 and $884 at December 31, 2016 and 2015 , respectively. The Company had $2 remaining availability under commitments to lend additional funds on these restructured loans at December 31, 2016 and zero dollars in remaining availability under commitments to lend additional funds on these restructured loans at December 31, 2015 . Credit Quality For commercial and commercial real estate secured loans, internal risk-rating grades are assigned by lending, credit administration or 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 commercial and commercial real estate secured loans. Loan grades range between 1 and 9 , with 1 being loans with the least credit risk. Loans that migrate toward the “Pass” grade (those with a risk rating between 1 and 4 ) or within the “Pass” grade generally have a lower risk of loss and therefore a lower risk factor. The “Watch” grade (those with a risk rating of 5 ) is utilized on a temporary basis for “Pass” grade loans where a significant risk-modifying action is anticipated in the near term. Loans that migrate toward the “Substandard” grade (those with a risk rating between 6 and 9 ) generally have a higher risk of loss and therefore a higher risk factor applied to those related loan balances. The following table presents the Company’s loan portfolio by risk-rating grades as of the dates presented: Pass Watch Substandard Total December 31, 2016 Commercial, financial, agricultural $ 434,323 $ 4,531 $ 850 $ 439,704 Real estate – construction 402,156 393 — 402,549 Real estate – 1-4 family mortgage 190,882 3,374 6,129 200,385 Real estate – commercial mortgage 1,734,523 18,118 13,088 1,765,729 Installment loans to individuals — — — — Total $ 2,761,884 $ 26,416 $ 20,067 $ 2,808,367 December 31, 2015 Commercial, financial, agricultural $ 336,583 $ 8,146 $ 690 $ 345,419 Real estate – construction 223,962 483 — 224,445 Real estate – 1-4 family mortgage 138,852 5,163 11,688 155,703 Real estate – commercial mortgage 1,406,188 22,142 18,964 1,447,294 Installment loans to individuals 52 — 5 57 Total $ 2,105,637 $ 35,934 $ 31,347 $ 2,172,918 For portfolio balances of consumer, consumer mortgage and certain other similar loan types, allowance factors are determined based on historical loss ratios by portfolio for the preceding eight quarters and may be adjusted by other qualitative criteria. The following table presents the performing status of the Company’s loan portfolio not subject to risk rating as of the dates presented: Performing Non-Performing Total December 31, 2016 Commercial, financial, agricultural $ 148,499 $ 1,087 $ 149,586 Lease financing 46,703 138 46,841 Real estate – construction 81,377 — 81,377 Real estate – 1-4 family mortgage 1,222,816 2,529 1,225,345 Real estate – commercial mortgage 308,609 799 309,408 Installment loans to individuals 92,504 144 92,648 Total $ 1,900,508 $ 4,697 $ 1,905,205 December 31, 2015 Commercial, financial, agricultural $ 139,895 $ 93 $ 139,988 Lease financing 34,815 — 34,815 Real estate – construction 67,256 — 67,256 Real estate – 1-4 family mortgage 1,046,100 2,425 1,048,525 Real estate – commercial mortgage 280,888 867 281,755 Installment loans to individuals 85,121 56 85,177 Total $ 1,654,075 $ 3,441 $ 1,657,516 Related Party Loans Certain executive officers and directors of Renasant Bank and their associates are customers of and have other transactions with Renasant Bank. Related party loans and commitments are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with persons not related to the Company or the Bank and do not involve more than a normal risk of collectability or present other unfavorable features. A summary of the changes in related party loans follows: Loans at December 31, 2015 $ 16,013 New loans and advances 576 Payments received (3,532 ) Changes in related parties 1,211 Loans at December 31, 2016 $ 14,268 No related party loans were classified as past due, nonaccrual, impaired or restructured at December 31, 2016 or 2015 . Unfunded commitments to certain executive officers and directors and their associates totaled $5,933 and $5,780 at December 31, 2016 and 2015 , respectively. Purchased Loans (In Thousands, Except Number of Loans) For purposes of this Note 5, all references to “loans” mean purchased loans. The following is a summary of purchased loans at December 31: 2016 2015 Commercial, financial, agricultural $ 128,200 $ 151,430 Lease financing — — Real estate – construction 68,753 65,964 Real estate – 1-4 family mortgage 452,447 531,095 Real estate – commercial mortgage 823,758 804,680 Installment loans to individuals 15,979 29,859 Gross loans 1,489,137 1,583,028 Unearned income — — Loans, net of unearned income 1,489,137 1,583,028 Past Due and Nonaccrual Loans The following table provides an aging of past due and nonaccrual 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 December 31, 2016 Commercial, financial, agricultural $ 823 $ 990 $ 125,417 $ 127,230 $ 260 $ 381 $ 329 $ 970 $ 128,200 Lease financing — — — — — — — — — Real estate – construction 527 321 67,760 68,608 — 145 — 145 68,753 Real estate – 1-4 family mortgage 4,572 3,382 440,258 448,212 417 2,047 1,771 4,235 452,447 Real estate – commercial mortgage 3,045 6,112 808,886 818,043 — 2,661 3,054 5,715 823,758 Installment loans to individuals 96 10 15,591 15,697 — 156 126 282 15,979 Unearned income — — — — — — — — — Total $ 9,063 $ 10,815 $ 1,457,912 $ 1,477,790 $ 677 $ 5,390 $ 5,280 $ 11,347 $ 1,489,137 December 31, 2015 Commercial, financial, agricultural $ 1,120 $ 1,039 $ 148,942 $ 151,101 $ — $ 65 $ 264 $ 329 $ 151,430 Lease financing — — — — — — — — — Real estate – construction — 176 65,788 65,964 — — — — 65,964 Real estate – 1-4 family mortgage 4,735 5,650 514,912 525,297 158 1,806 3,834 5,798 531,095 Real estate – commercial mortgage 2,458 8,156 784,863 795,477 — 595 8,608 9,203 804,680 Installment loans to individuals 94 46 29,659 29,799 — 53 7 60 29,859 Unearned income — — — — — — — — — Total $ 8,407 $ 15,067 $ 1,544,164 $ 1,567,638 $ 158 $ 2,519 $ 12,713 $ 15,390 $ 1,583,028 Restructured loans that are 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 loan totaling $56 that was contractually 90 days past due or more and still accruing at December 31, 2016 . There was one restructured loan totaling $275 that was contractually 90 days past due or more and still accruing at December 31, 2015 . The outstanding balance of restructured loans on nonaccrual status was $1,206 and $4,778 at December 31, 2016 and 2015 , respectively. Impaired Loans Purchased non credit deteriorated loans that were subsequently impaired and recognized in conformity with ASC 310-20, segregated by class, were as follows as of the dates and periods presented: As of December 31, 2016 Year Ended December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Commercial, financial, agricultural $ 487 $ 503 $ 310 $ 500 $ 2 Lease financing — — — — — Real estate – construction 145 147 — 148 — Real estate – 1-4 family mortgage 1,496 1,538 43 1,535 7 Real estate – commercial mortgage 2,275 2,299 48 2,273 111 Installment loans to individuals 135 159 114 161 — Total $ 4,538 $ 4,646 $ 515 $ 4,617 $ 120 With no related allowance recorded: Commercial, financial, agricultural $ 224 $ 229 $ — $ 172 $ 4 Lease financing — — — — — Real estate – construction — — — — — Real estate – 1-4 family mortgage 1,385 1,557 — 1,550 33 Real estate – commercial mortgage 183 186 — 194 11 Installment loans to individuals 55 56 — 61 — Total $ 1,847 $ 2,028 $ — $ 1,977 $ 48 Totals $ 6,385 $ 6,674 $ 515 $ 6,594 $ 168 As of December 31, 2015 Year Ended December 31, 2015 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Commercial, financial, agricultural $ 14 $ 17 $ — $ 18 $ — Lease financing — — — — — Real estate – construction 2,698 2,710 20 899 78 Real estate – 1-4 family mortgage 655 675 1 712 28 Real estate – commercial mortgage 1,193 1,251 193 1,223 19 Installment loans to individuals 23 23 — 8 — Total $ 4,583 $ 4,676 $ 214 $ 2,860 $ 125 With no related allowance recorded: Commercial, financial, agricultural $ — $ — $ — $ — $ — Lease financing — — — — — Real estate – construction — — — — — Real estate – 1-4 family mortgage — — — — — Real estate – commercial mortgage — — — — — Installment loans to individuals — — — — — Total $ — $ — $ — $ — $ — Totals $ 4,583 $ 4,676 $ 214 $ 2,860 $ 125 Purchased credit deteriorated loans recognized in conformity with ASC 310-30, segregated by class, were as follows as of the dates and periods presented: As of December 31, 2016 Year Ended December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Commercial, financial, agricultural $ 4,555 $ 5,038 $ 372 $ 4,728 $ 207 Lease financing — — — — — Real estate – construction — — — — — Real estate – 1-4 family mortgage 21,887 23,128 841 23,021 1,015 Real estate – commercial mortgage 62,449 70,970 1,606 62,759 2,674 Installment loans to individuals 366 368 1 382 13 Total $ 89,257 $ 99,504 $ 2,820 $ 90,890 $ 3,909 With no related allowance recorded: Commercial, financial, agricultural $ 7,439 $ 15,659 $ — $ 10,304 $ 819 Lease financing — — — — — Real estate – construction 840 1,141 — 648 38 Real estate – 1-4 family mortgage 50,065 63,597 — 64,306 2,636 Real estate – commercial mortgage 122,538 158,105 — 149,917 7,053 Installment loans to individuals 1,619 2,098 — 1,967 77 Total $ 182,501 $ 240,600 $ — $ 227,142 $ 10,623 Totals $ 271,758 $ 340,104 $ 2,820 $ 318,032 $ 14,532 As of December 31, 2015 Year Ended December 31, 2015 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Commercial, financial, agricultural $ 5,197 $ 5,694 $ 353 $ 4,774 $ 212 Lease financing — — — — — Real estate – construction — — — — — Real estate – 1-4 family mortgage 15,702 16,002 256 15,498 799 Real estate – commercial mortgage 53,762 57,950 1,096 56,548 2,667 Installment loans to individuals 400 694 1 416 13 Total $ 75,061 $ 80,340 $ 1,706 $ 77,236 $ 3,691 With no related allowance recorded: Commercial, financial, agricultural $ 11,292 $ 21,355 $ — $ 10,830 $ 1,106 Lease financing — — — — — Real estate – construction 2,749 2,916 — 1,114 108 Real estate – 1-4 family mortgage 75,947 93,291 — 82,562 3,258 Real estate – commercial mortgage 168,848 229,871 — 180,326 9,546 Installment loans to individuals 2,268 2,738 — 2,942 119 Total $ 261,104 $ 350,171 $ — $ 277,774 $ 14,137 Totals $ 336,165 $ 430,511 $ 1,706 $ 355,010 $ 17,828 The average recorded investment in impaired loans for the year ended December 31, 2014 was $2,037 . Interest income recognized on impaired loans for the year ended December 31, 2014 was $59 . Restructured Loans The following table presents restructured loans segregated by class as of the dates presented: Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment December 31, 2016 Commercial, financial, agricultural 1 $ 41 $ 17 Lease financing — — — Real estate – construction — — — Real estate – 1-4 family mortgage 30 2,754 2,081 Real estate – commercial mortgage 11 2,641 1,930 Installment loans to individuals — — — Total 42 $ 5,436 $ 4,028 December 31, 2015 Commercial, financial, agricultural — $ — $ — Lease financing — — — Real estate – construction — — — Real estate – 1-4 family mortgage 17 1,339 1,024 Real estate – commercial mortgage 9 2,658 2,177 Installment loans to individuals — — — Total 26 $ 3,997 $ 3,201 Changes in the Company’s restructured loans are set forth in the table below. Number of Loans Recorded Investment Totals at January 1, 2015 4 $ 458 Additional loans with concessions 23 3,341 Reductions due to: Reclassified as nonperforming (1 ) (275 ) Paid in full — — Charge-offs — — Transfer to other real estate owned — — Principal paydowns — (323 ) Lapse of concession period — — TDR reclassified as performing loan — $ — Totals at December 31, 2015 26 $ 3,201 Additional loans with concessions 25 2,472 Reductions due to: Reclassified as nonperforming (4 ) (216 ) Paid in full (5 ) (1,297 ) Charge-offs — — Transfer to other real estate owned — — Principal paydowns — (132 ) Lapse of concession period — — TDR reclassified as performing loan — $ — Totals at December 31, 2016 42 $ 4,028 The allocated allowance for loan losses attributable to restructured loans was $35 and $95 at December 31, 2016 and 2015 , respectively. The Company had $3 remaining availability under commitments to lend additional funds on these restructured loans at December 31, 2016 and zero dollars in remaining availability under commitments to lend additional funds on these restructured loans at December 31, 2015 . Credit Quality The following table presents the Company’s loan portfolio by risk-rating grades as of the dates presented: Pass Watch Substandard Total December 31, 2016 Commercial, financial, agricultural $ 102,777 $ 2,370 $ 1,491 $ 106,638 Real estate – construction 61,206 2,640 — 63,846 Real estate – 1-4 family mortgage 105,265 7,665 364 113,294 Real estate – commercial mortgage 608,192 8,445 723 617,360 Installment loans to individuals — — 114 114 Total $ 877,440 $ 21,120 $ 2,692 $ 901,252 December 31, 2015 Commercial, financial, agricultural $ 128,602 $ 352 $ 1,044 $ 129,998 Real estate – construction 49,436 — — 49,436 Real estate – 1-4 family mortgage 136,417 4,549 3,772 144,738 Real estate – commercial mortgage 562,164 5,033 1,719 568,916 Installment loans to individuals — — — — Total $ 876,619 $ 9,934 $ 6,535 $ 893,088 The following table presents the performing status of the Company’s loan portfolio not subject to risk rating as of the dates presented: Performing Non-Performing Total December 31, 2016 Commercial, financial, agricultural $ 9,489 $ 79 $ 9,568 Lease financing — — — Real estate – construction 3,601 5 466 4,067 Real estate – 1-4 family mortgage 265,697 1,504 267,201 Real estate – commercial mortgage 21,353 58 21,411 Installment loans to individuals 13,712 168 13,880 Total $ 313,852 $ 2,275 $ 316,127 December 31, 2015 Commercial, financial, agricultural $ 4,943 $ — $ 4,943 Lease financing — — — Real estate – construction 13,779 — 13,779 Real estate – 1-4 family mortgage 294,256 452 294,708 Real estate – commercial mortgage 13,154 — 13,154 Installment loans to individuals 27,153 38 27,191 Total $ 353,285 $ 490 $ 353,775 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 dates presented: Total Purchased Credit Deteriorated Loans December 31, 2016 Commercial, financial, agricultural $ 11,994 Lease financing — Real estate – construction 840 Real estate – 1-4 family mortgage 71,952 Real estate – commercial mortgage 184,987 Installment loans to individuals 1,985 Total $ 271,758 December 31, 2015 Commercial, financial, agricultural $ 16,489 Lease financing — Real estate – construction 2,749 Real estate – 1-4 family mortgage 91,649 Real estate – commercial mortgage 222,610 Installment loans to individuals 2,668 Total $ 336,165 The following table presents the fair value of loans determined to be impaired at the time of acquisition: Total Purchased Credit Deteriorated Loans December 31, 2016 Contractually-required principal and interest $ 389,798 Nonaccretable difference (1) (81,714 ) Cash flows expected to be collected 308,084 Accretable yield (2) (36,326 ) Fair value $ 271,758 December 31, 2015 Contractually-required principal and interest $ 467,777 Nonaccretable difference (1) (83,320 ) Cash flows expected to be collected 384,457 Accretable yield (2) (48,292 ) Fair value $ 336,165 (1) Represents contractual principal cash flows of $81,673 and $83,078 , respectively, and interest cash flows of $41 and $241 , respectively, not expected to be collected. (2) Represents contractual interest payments expected to be collected of $1,776 and $2,312 , respectively, and purchase discounts of $34,550 and $45,980 , respectively. Changes in the accretable yield of loans purchased with deteriorated credit quality were as follows: Total Purchased Credit Deteriorated Loans Balance at January 1, 2015 $ (32,433 ) Additions through acquisition (28,046 ) Reclasses from nonaccretable difference (6,617 ) Accretion 17,212 Charge-off 1,592 Balance at December 31, 2015 $ (48,292 ) Additions through acquisition (4,037 ) Reclasses from nonaccretable difference (950 ) Accretion 14,711 Charge-off 2,242 Balance at December 31, 2016 $ (36,326 ) The following table presents the fair value of loans purchased from KeyWorth as of the April 1, 2016 acquisition date. At acquisition date: April 1, 2016 Contractually-required principal and interest $ 289,495 Nonaccretable difference 3,848 Cash flows expected to be collected 285,647 Accretable yield 13,317 Fair value $ 272,330 The following table provides the recorded investment in loans, net of unearned income, based on the Company’s impairment methodology as of the dates presented: Commercial Real Estate - Construction Real Estate - 1-4 Family Mortgage Real Estate - Commercial Mortgage Installment and Other (1) Total December 31, 2016 Individually evaluated for impairment $ 487 $ 145 $ 1,496 $ 2,275 $ 135 $ 4,538 Collectively evaluated for impairment 115,719 67,768 378,999 636,496 13,859 1,212,841 Acquired with deteriorated credit quality 11,994 840 71,952 184,987 1,985 271,758 Ending balance $ 128,200 $ 68,753 $ 452,447 $ 823,758 $ 15,979 $ 1,489,137 December 31, 2015 Individually evaluated for impairment $ 14 $ 2,698 $ 655 $ 1,193 $ 23 $ 4,583 Collectively evaluated for impairment 134,927 60,517 438,791 580,877 27,168 1,242,280 Acquired with deteriorated credit quality 16,489 2,749 91,649 222,610 2,668 336,165 Ending balance $ 151,430 $ 65,964 $ 531,095 $ 804,680 $ 29,859 $ 1,583,028 (1) Includes lease financing receivables. |