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 as of the dates presented: September 30, December 31, 2017 Commercial, financial, agricultural $ 817,799 $ 763,823 Lease financing 57,576 57,354 Real estate – construction 624,892 547,658 Real estate – 1-4 family mortgage 2,000,770 1,729,534 Real estate – commercial mortgage 2,609,510 2,390,076 Installment loans to individuals 102,995 103,452 Gross loans 6,213,542 5,591,897 Unearned income (3,304 ) (3,341 ) Loans, net of unearned income $ 6,210,238 $ 5,588,556 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 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 September 30, 2018 Commercial, financial, agricultural $ 1,606 $ 319 $ 814,246 $ 816,171 $ — $ 1,423 $ 205 $ 1,628 $ 817,799 Lease financing 320 — 57,256 57,576 — — — — 57,576 Real estate – construction 1,069 — 623,823 624,892 — — — — 624,892 Real estate – 1-4 family mortgage 7,928 2,965 1,986,079 1,996,972 207 2,678 913 3,798 2,000,770 Real estate – commercial mortgage 3,080 480 2,601,728 2,605,288 324 2,328 1,570 4,222 2,609,510 Installment loans to individuals 860 42 102,045 102,947 6 38 4 48 102,995 Unearned income — — (3,304 ) (3,304 ) — — — — (3,304 ) Total $ 14,863 $ 3,806 $ 6,181,873 $ 6,200,542 $ 537 $ 6,467 $ 2,692 $ 9,696 $ 6,210,238 December 31, 2017 Commercial, financial, agricultural $ 2,722 $ 22 $ 759,143 $ 761,887 $ 205 $ 1,033 $ 698 $ 1,936 $ 763,823 Lease financing 47 — 57,148 57,195 — 159 — 159 57,354 Real estate – construction 50 — 547,608 547,658 — — — — 547,658 Real estate – 1-4 family mortgage 11,810 2,194 1,712,982 1,726,986 — 1,818 730 2,548 1,729,534 Real estate – commercial mortgage 1,921 727 2,381,871 2,384,519 — 2,877 2,680 5,557 2,390,076 Installment loans to individuals 429 72 102,901 103,402 1 28 21 50 103,452 Unearned income — — (3,341 ) (3,341 ) — — — — (3,341 ) Total $ 16,979 $ 3,015 $ 5,558,312 $ 5,578,306 $ 206 $ 5,915 $ 4,129 $ 10,250 $ 5,588,556 Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Impairment is measured on a loan-by-loan basis for commercial, consumer and construction loans of $500 or more by, as applicable, the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are evaluated collectively for impairment. When the ultimate collectability of an impaired loan’s principal is in doubt, wholly or partially, the loan is placed on nonaccrual status and all cash receipts are applied to principal. Once the recorded balance has been reduced to zero, future cash receipts are applied to interest income, to the extent any interest has been foregone, and then they are recorded as recoveries of any amounts previously charged-off. For impaired loans, a specific reserve is established to adjust the carrying value of the loan to its estimated net realizable value. Loans 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 dates presented: Unpaid Contractual Principal Balance Recorded Investment With Allowance Recorded Investment With No Allowance Total Recorded Investment Related Allowance September 30, 2018 Commercial, financial, agricultural $ 2,426 $ 1,952 $ — $ 1,952 $ 377 Lease financing — — — — — Real estate – construction 9,725 7,560 2,165 9,725 65 Real estate – 1-4 family mortgage 8,841 8,115 — 8,115 58 Real estate – commercial mortgage 8,781 4,954 1,277 6,231 611 Installment loans to individuals 119 112 — 112 1 Total $ 29,892 $ 22,693 $ 3,442 $ 26,135 $ 1,112 December 31, 2017 Commercial, financial, agricultural $ 3,043 $ 2,365 $ — $ 2,365 $ 138 Lease financing 159 159 — 159 2 Real estate – construction 578 578 — 578 4 Real estate – 1-4 family mortgage 10,018 8,169 703 8,872 561 Real estate – commercial mortgage 12,463 9,652 — 9,652 1,861 Installment loans to individuals 121 117 — 117 1 Totals $ 26,382 $ 21,040 $ 703 $ 21,743 $ 2,567 The following table presents the average recorded investment and interest income recognized on loans accounted for under ASC 310-20 and which are impaired loans for the periods presented: Three Months Ended Three Months Ended September 30, 2018 September 30, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial, financial, agricultural $ 1,979 $ 11 $ 1,960 $ 8 Lease financing — — — — Real estate – construction 9,725 42 897 33 Real estate – 1-4 family mortgage 8,136 51 8,897 71 Real estate – commercial mortgage 6,258 37 7,575 46 Installment loans to individuals 118 1 140 1 Total $ 26,216 $ 142 $ 19,469 $ 159 Nine Months Ended Nine Months Ended September 30, 2018 September 30, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial, financial, agricultural $ 2,204 $ 31 $ 2,140 $ 8 Lease financing — — — — Real estate – construction 9,621 109 861 36 Real estate – 1-4 family mortgage 8,388 174 8,944 165 Real estate – commercial mortgage 6,354 117 7,844 134 Installment loans to individuals 121 2 148 2 Total $ 26,688 $ 433 $ 19,937 $ 345 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. There were no newly restructured loans during the three months ended September 30, 2018. Number of Loans Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Three months ended September 30, 2017 Real estate – 1-4 family mortgage 4 $ 307 $ 307 Real estate – commercial mortgage 1 230 175 Total 5 $ 537 $ 482 Number of Loans Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Nine months ended September 30, 2018 Real estate – 1-4 family mortgage 4 $ 625 $ 625 Real estate – commercial mortgage 1 83 78 Total 5 $ 708 $ 703 Nine months ended September 30, 2017 Real estate – 1-4 family mortgage 9 $ 611 $ 601 Real estate – commercial mortgage 3 683 318 Installment loans to individuals 1 4 3 Total 13 $ 1,298 $ 922 With respect to loans that were restructured during the nine months ended September 30, 2018 , none have subsequently defaulted as of the date of this report. With respect to loans that were restructured during the nine months ended September 30, 2017 , $230 subsequently defaulted within twelve months of the restructuring. 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 two restructured loans in the amount of $228 contractually 90 days past due or more and still accruing at September 30, 2018 and three restructured loans in the amount of $597 contractually 90 days past due or more and still accruing at September 30, 2017 . The outstanding balance of restructured loans on nonaccrual status was $3,147 and $4,651 at September 30, 2018 and September 30, 2017 , respectively. Changes in the Company’s restructured loans are set forth in the table below: Number of Loans Recorded Investment Totals at January 1, 2018 54 $ 5,588 Additional loans with concessions 5 709 Reclassified as performing 2 154 Reductions due to: Reclassified as nonperforming (7 ) (598 ) Paid in full (8 ) (1,448 ) Principal paydowns — (165 ) Totals at September 30, 2018 46 $ 4,240 The allocated allowance for loan losses attributable to restructured loans was $33 and $98 at September 30, 2018 and September 30, 2017 , respectively. The Company had $19 in remaining availability under commitments to lend additional funds on these restructured loans at September 30, 2018 . There was no remaining availability under commitments to lend additional funds on these restructured loans at September 30, 2017 . Credit Quality For commercial and commercial real estate 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 these loans. Loan grades range between 1 and 9 , with 1 being loans with the least credit risk. Loans within the “Pass” grade (historically, those with a risk rating between 1 and 4) generally have a lower risk of loss and therefore a lower risk factor applied to the loan balances. Management has established more granular risk rating categories to better identify heightened credit risk as loans migrate downward in the risk rating system. The “Pass” grade is now reserved for loans with a risk rating between 1 and 4A , and the “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. The following table presents the Company’s loan portfolio by risk-rating grades as of the dates presented: Pass Watch Substandard Total September 30, 2018 Commercial, financial, agricultural $ 596,176 $ 12,885 $ 4,729 $ 613,790 Real estate – construction 548,080 764 9,695 558,539 Real estate – 1-4 family mortgage 298,125 1,093 5,803 305,021 Real estate – commercial mortgage 2,200,150 52,845 22,073 2,275,068 Installment loans to individuals 570 — — 570 Total $ 3,643,101 $ 67,587 $ 42,300 $ 3,752,988 December 31, 2017 Commercial, financial, agricultural $ 554,943 $ 11,496 $ 4,402 $ 570,841 Real estate – construction 483,498 662 81 484,241 Real estate – 1-4 family mortgage 254,643 505 8,697 263,845 Real estate – commercial mortgage 1,983,750 50,428 24,241 2,058,419 Installment loans to individuals 921 — — 921 Total $ 3,277,755 $ 63,091 $ 37,421 $ 3,378,267 For portfolio balances of consumer, small balance consumer mortgage loans, such as 1-4 family mortgage loans, and certain other loans originated for other than commercial purposes, 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 September 30, 2018 Commercial, financial, agricultural $ 202,633 $ 1,376 $ 204,009 Lease financing 54,272 — 54,272 Real estate – construction 66,353 — 66,353 Real estate – 1-4 family mortgage 1,690,667 5,082 1,695,749 Real estate – commercial mortgage 333,452 990 334,442 Installment loans to individuals 102,335 90 102,425 Total $ 2,449,712 $ 7,538 $ 2,457,250 December 31, 2017 Commercial, financial, agricultural $ 191,473 $ 1,509 $ 192,982 Lease financing 53,854 159 54,013 Real estate – construction 63,417 — 63,417 Real estate – 1-4 family mortgage 1,462,347 3,342 1,465,689 Real estate – commercial mortgage 330,441 1,216 331,657 Installment loans to individuals 102,409 122 102,531 Total $ 2,203,941 $ 6,348 $ 2,210,289 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 as of the dates presented: September 30, December 31, 2017 Commercial, financial, agricultural $ 495,545 $ 275,570 Real estate – construction 112,093 85,731 Real estate – 1-4 family mortgage 761,913 614,187 Real estate – commercial mortgage 1,503,075 1,037,454 Installment loans to individuals 40,043 18,824 Gross loans 2,912,669 2,031,766 Unearned income — — Loans, net of unearned income $ 2,912,669 $ 2,031,766 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 4, “Non Purchased 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 September 30, 2018 Commercial, financial, agricultural $ 5,508 $ 487 $ 489,237 $ 495,232 $ — $ 239 $ 74 $ 313 $ 495,545 Real estate – construction 2,676 — 109,153 111,829 — 264 — 264 112,093 Real estate – 1-4 family mortgage 6,737 3,648 748,488 758,873 353 1,357 1,330 3,040 761,913 Real estate – commercial mortgage 5,140 3,767 1,493,220 1,502,127 412 329 207 948 1,503,075 Installment loans to individuals 772 58 38,969 39,799 54 — 190 244 40,043 Total $ 20,833 $ 7,960 $ 2,879,067 $ 2,907,860 $ 819 $ 2,189 $ 1,801 $ 4,809 $ 2,912,669 December 31, 2017 Commercial, financial, agricultural $ 1,119 $ 532 $ 273,488 $ 275,139 $ — $ 199 $ 232 $ 431 $ 275,570 Real estate – construction 415 — 85,316 85,731 — — — — 85,731 Real estate – 1-4 family mortgage 6,070 2,280 602,464 610,814 385 879 2,109 3,373 614,187 Real estate – commercial mortgage 2,947 2,910 1,031,141 1,036,998 191 99 166 456 1,037,454 Installment loans to individuals 208 9 18,443 18,660 59 — 105 164 18,824 Total $ 10,759 $ 5,731 $ 2,010,852 $ 2,027,342 $ 635 $ 1,177 $ 2,612 $ 4,424 $ 2,031,766 Impaired Loans The Company’s policies with respect to the determination of whether a loan is impaired and the treatment of such loans are described above in Note 4, “Non Purchased Loans.” Loans 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 dates presented: Unpaid Contractual Principal Balance Recorded Investment With Allowance Recorded Investment With No Allowance Total Recorded Investment Related Allowance September 30, 2018 Commercial, financial, agricultural $ 391 $ 327 $ 2 $ 329 $ 44 Real estate – construction 520 520 — 520 5 Real estate – 1-4 family mortgage 4,924 834 3,495 4,329 12 Real estate – commercial mortgage 1,521 1,337 152 1,489 104 Installment loans to individuals 245 244 — 244 4 Total $ 7,601 $ 3,262 $ 3,649 $ 6,911 $ 169 December 31, 2017 Commercial, financial, agricultural $ 757 $ 625 $ 74 $ 699 $ 52 Real estate – construction 1,207 — 1,199 1,199 — Real estate – 1-4 family mortgage 6,173 1,385 4,225 5,610 45 Real estate – commercial mortgage 901 728 165 893 6 Installment loans to individuals 165 154 9 163 4 Totals $ 9,203 $ 2,892 $ 5,672 $ 8,564 $ 107 The following table presents the average recorded investment and interest income recognized on loans accounted for under ASC 310-20 and which are impaired loans for the periods presented: Three Months Ended Three Months Ended September 30, 2018 September 30, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial, financial, agricultural $ 331 $ 3 $ 413 $ 6 Real estate – construction 520 1 829 62 Real estate – 1-4 family mortgage 4,817 33 5,174 41 Real estate – commercial mortgage 1,511 12 899 8 Installment loans to individuals 244 — 167 — Total $ 7,423 $ 49 $ 7,482 $ 117 Nine Months Ended Nine Months Ended September 30, 2018 September 30, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial, financial, agricultural $ 334 $ 8 $ 332 $ 9 Real estate – construction 520 2 741 62 Real estate – 1-4 family mortgage 4,907 107 5,221 103 Real estate – commercial mortgage 1,545 43 915 25 Installment loans to individuals 244 — 169 — Total $ 7,550 $ 160 $ 7,378 $ 199 Loans accounted for under ASC 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality” (“ASC 310-30”), and which are impaired loans recognized in conformity with ASC 310, segregated by class, were as follows as of the dates presented: Unpaid Contractual Principal Balance Recorded Investment With Allowance Recorded Investment With No Allowance Total Recorded Investment Related Allowance September 30, 2018 Commercial, financial, agricultural $ 43,724 $ 4,680 $ 27,959 $ 32,639 $ 360 Real estate – 1-4 family mortgage 62,126 13,469 35,724 49,193 505 Real estate – commercial mortgage 171,754 63,323 81,930 145,253 1,961 Installment loans to individuals 9,009 701 4,277 4,978 2 Total $ 286,613 $ 82,173 $ 149,890 $ 232,063 $ 2,828 December 31, 2017 Commercial, financial, agricultural $ 24,179 $ 5,768 $ 9,547 $ 15,315 $ 312 Real estate – 1-4 family mortgage 65,049 15,910 38,059 53,969 572 Real estate – commercial mortgage 186,720 65,108 91,230 156,338 892 Installment loans to individuals 1,761 698 940 1,638 1 Totals $ 277,709 $ 87,484 $ 139,776 $ 227,260 $ 1,777 The following table presents the average recorded investment and interest income recognized on loans accounted for under ASC 310-30 and which are impaired loans for the periods presented: Three Months Ended Three Months Ended September 30, 2018 September 30, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial, financial, agricultural $ 11,705 $ 162 $ 14,201 $ 507 Real estate – 1-4 family mortgage 51,957 621 67,802 808 Real estate – commercial mortgage 141,780 1,705 174,394 2,578 Installment loans to individuals 1,608 18 1,812 18 Total $ 207,050 $ 2,506 $ 258,209 $ 3,911 Nine Months Ended Nine Months Ended September 30, 2018 September 30, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial, financial, agricultural $ 12,117 $ 579 $ 13,530 $ 988 Real estate – 1-4 family mortgage 53,093 1,941 68,933 2,301 Real estate – commercial mortgage 144,530 5,610 177,039 6,886 Installment loans to individuals 1,616 54 1,865 55 Total $ 211,356 $ 8,184 $ 261,367 $ 10,230 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 4, “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. There were no newly restructured loans during the three months ended September 30, 2018. Number of Loans Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Three months ended September 30, 2017 Real estate – 1-4 family mortgage 18 $ 1,624 $ 1,189 Real estate – commercial mortgage 1 393 244 Total 19 $ 2,017 $ 1,433 Number of Loans Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Nine months ended September 30, 2018 Commercial, financial, agricultural 1 $ 48 $ 44 Real estate – 1-4 family mortgage 1 $ 18 $ 17 Real estate – commercial mortgage 1 8 7 Total 3 $ 74 $ 68 Nine months ended September 30, 2017 Real estate – 1-4 family mortgage 28 $ 3,789 $ 3,062 Real estate – commercial mortgage 3 2,851 2,025 Total 31 $ 6,640 $ 5,087 With respect to loans that were restructured during the nine months ended September 30, 2018 , none have subsequently defaulted as of the date of this report. With respect to loans that were restructured during the nine months ended September 30, 2017 , $372 subsequently defaulted within twelve months of the restructuring. There were three restructured loans in the amount of $503 contractually 90 days past due or more and still accruing at September 30, 2018 and two restructured loans in the amount of $146 contractually 90 days past due or more and still accruing at September 30, 2017 . The outstanding balance of restructured loans on nonaccrual status was $493 and $504 at September 30, 2018 and September 30, 2017 , respectively. Changes in the Company’s restructured loans are set forth in the table below: Number of Loans Recorded Investment Totals at January 1, 2018 68 $ 8,965 Additional loans with concessions 3 220 Reclassified as performing restructured loan 3 175 Reductions due to: Reclassified to nonperforming loans (5 ) (688 ) Paid in full (4 ) (411 ) Principal paydowns — (570 ) Totals at September 30, 2018 65 $ 7,691 The allocated allowance for loan losses attributable to restructured loans was $62 and $97 at September 30, 2018 and September 30, 2017 , respectively. The Company had $2 and $7 in remaining availability under commitments to lend additional funds on these restructured loans at September 30, 2018 and September 30, 2017 , respectively. Credit Quality A discussion of the Company’s policies regarding internal risk-rating of loans is discussed above in Note 4, “Non Purchased Loans.” The following table presents the Company’s loan portfolio by risk-rating grades as of the dates presented: Pass Watch Substandard Total September 30, 2018 Commercial, financial, agricultural $ 409,790 $ 38,947 $ 2,487 $ 451,224 Real estate – construction 77,950 — 264 78,214 Real estate – 1-4 family mortgage 134,136 7,591 5,993 147,720 Real estate – commercial mortgage 1,232,028 38,418 9,538 1,279,984 Installment loans to individuals 1,720 — 2 1,722 Total $ 1,855,624 $ 84,956 $ 18,284 $ 1,958,864 December 31, 2017 Commercial, financial, agricultural $ 241,195 $ 4,974 $ 2,824 $ 248,993 Real estate – construction 81,220 — — 81,220 Real estate – 1-4 family mortgage 91,369 2,498 6,172 100,039 Real estate – commercial mortgage 827,372 17,123 9,003 853,498 Installment loans to individuals 678 — 3 681 Total $ 1,241,834 $ 24,595 $ 18,002 $ 1,284,431 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 September 30, 2018 Commercial, financial, agricultural $ 11,613 $ 69 $ 11,682 Real estate – construction 33,879 — 33,879 Real estate – 1-4 family mortgage 562,989 2,011 565,000 Real estate – commercial mortgage 77,722 116 77,838 Installment loans to individuals 33,081 262 33,343 Total $ 719,284 $ 2,458 $ 721,742 December 31, 2017 Commercial, financial, agricultural $ 11,216 $ 46 $ 11,262 Real estate – construction 4,511 — 4,511 Real estate – 1-4 family mortgage 459,038 1,141 460,179 Real estate – commercial mortgage 27,495 123 27,618 Installment loans to individuals 16,344 161 16,505 Total $ 518,604 $ 1,471 $ 520,075 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 September 30, 2018 Commercial, financial, agricultural $ 32,639 Real estate – 1-4 family mortgage 49,193 Real estate – commercial mortgage 145,253 Installment loans to individuals 4,978 Total $ 232,063 December 31, 2017 Commercial, financial, agricultural $ 15,315 Real estate – 1-4 family mortgage 53,969 Real estate – commercial mortgage 156,338 Installment loans to individuals 1,638 Total $ 227,260 The following table presents the fair value of loans that exhibited evidence of deteriorated credit quality at the time of acquisition at September 30, 2018 : Total Purchased Credit Deteriorated Loans Contractually-required principal and interest $ 330,403 Nonaccretable difference (1) (62,705 ) Cash flows expected to be collected 267,698 Accretable yield (2) (35,635 ) Fair value $ 232,063 (1) Represents contractual principal and interest cash flows of $52,680 and $10,025 , respectively, not expected to be collected. (2) Represents contractual principal and interest cash flows of $1,444 and $34,191 , respectively, expected to be collected. Changes in the accretable yield of loans purchased with deteriorated credit quality were as follows as of September 30, 2018 : Total Purchased Credit Deteriorated Loans Balance at January 1, 2018 $ (32,207 ) Additions due to acquisition (9,353 ) Reclassification from nonaccretable difference (5,952 ) Accretion 11,285 Charge-offs 592 Balance at September 30, 2018 $ (35,635 ) The following table presents the fair value of loans purchased from Brand as of the September 1, 2018 acquisition date. At acquisition date: September 1, 2018 Contractually-required principal and interest $ 1,625,137 Nonaccretable difference (120,033 ) Cash flows expected to be collected 1,505,104 Accretable yield (169,631 ) Fair value $ 1,335,473 The following table presents the fair value of loans purchased from Metropolitan as of the July 1, 2017 acquisition date. At acquisition date: July 1, 2017 Contractually-required principal and interest $ 1,198,741 Nonaccretable difference (79,165 ) Cash flows expected to be collected 1,119,576 Accretable yield (154,543 ) Fair value $ 965,033 |