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: June 30, December 31, 2018 Commercial, financial, agricultural $ 930,598 $ 875,649 Lease financing 62,026 64,992 Real estate – construction 716,129 635,519 Real estate – 1-4 family mortgage 2,160,617 2,087,890 Real estate – commercial mortgage 2,741,402 2,628,365 Installment loans to individuals 96,384 100,424 Gross loans 6,707,156 6,392,839 Unearned income (2,868 ) (3,127 ) Loans, net of unearned income $ 6,704,288 $ 6,389,712 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 June 30, 2019 Commercial, financial, agricultural $ 1,945 $ 155 $ 922,972 $ 925,072 $ — $ 5,074 $ 452 $ 5,526 $ 930,598 Lease financing 470 — 61,486 61,956 — 70 — 70 62,026 Real estate – construction 2,566 — 713,563 716,129 — — — — 716,129 Real estate – 1-4 family mortgage 6,398 3,208 2,146,622 2,156,228 772 2,249 1,368 4,389 2,160,617 Real estate – commercial mortgage 2,835 778 2,733,595 2,737,208 68 2,343 1,783 4,194 2,741,402 Installment loans to individuals 444 34 95,817 96,295 4 85 — 89 96,384 Unearned income — — (2,868 ) (2,868 ) — — — — (2,868 ) Total $ 14,658 $ 4,175 $ 6,671,187 $ 6,690,020 $ 844 $ 9,821 $ 3,603 $ 14,268 $ 6,704,288 December 31, 2018 Commercial, financial, agricultural $ 3,397 $ 267 $ 870,457 $ 874,121 $ — $ 1,356 $ 172 $ 1,528 $ 875,649 Lease financing 607 89 64,296 64,992 — — — — 64,992 Real estate – construction 887 — 634,632 635,519 — — — — 635,519 Real estate – 1-4 family mortgage 10,378 2,151 2,071,401 2,083,930 238 2,676 1,046 3,960 2,087,890 Real estate – commercial mortgage 1,880 13 2,621,902 2,623,795 — 2,974 1,596 4,570 2,628,365 Installment loans to individuals 368 165 99,731 100,264 3 157 — 160 100,424 Unearned income — — (3,127 ) (3,127 ) — — — — (3,127 ) Total $ 17,517 $ 2,685 $ 6,359,292 $ 6,379,494 $ 241 $ 7,163 $ 2,814 $ 10,218 $ 6,389,712 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 June 30, 2019 Commercial, financial, agricultural $ 5,888 $ 5,652 $ — $ 5,652 $ 1,128 Lease financing 70 70 — 70 1 Real estate – construction 9,309 800 8,509 9,309 6 Real estate – 1-4 family mortgage 10,882 10,548 — 10,548 167 Real estate – commercial mortgage 8,219 4,566 1,159 5,725 319 Installment loans to individuals 94 89 — 89 1 Total $ 34,462 $ 21,725 $ 9,668 $ 31,393 $ 1,622 December 31, 2018 Commercial, financial, agricultural $ 2,280 $ 1,834 $ — $ 1,834 $ 163 Lease financing — — — — — Real estate – construction 9,467 7,302 2,165 9,467 63 Real estate – 1-4 family mortgage 9,767 9,077 — 9,077 61 Real estate – commercial mortgage 8,625 4,609 1,238 5,847 689 Installment loans to individuals 232 223 — 223 1 Totals $ 30,371 $ 23,045 $ 3,403 $ 26,448 $ 977 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 June 30, 2019 June 30, 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial, financial, agricultural $ 5,746 $ 9 $ 2,663 $ 8 Lease financing 88 — 335 — Real estate – construction 9,015 105 — — Real estate – 1-4 family mortgage 10,584 51 7,442 57 Real estate – commercial mortgage 5,812 38 5,807 38 Installment loans to individuals 90 1 106 1 Total $ 31,335 $ 204 $ 16,353 $ 104 Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial, financial, agricultural $ 5,773 $ 18 $ 2,653 $ 19 Lease financing 87 — 335 — Real estate – construction 8,986 210 — — Real estate – 1-4 family mortgage 10,640 103 7,507 123 Real estate – commercial mortgage 5,851 81 6,041 130 Installment loans to individuals 90 2 108 2 Total $ 31,427 $ 414 $ 16,644 $ 274 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. Number of Loans Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Three months ended June 30, 2019 Commercial, financial, agricultural 2 $ 187 $ 185 Real estate – 1-4 family mortgage 3 $ 305 $ 304 Total 5 $ 492 $ 489 Three months ended June 30, 2018 Real estate – 1-4 family mortgage 1 $ 49 $ 49 Total 1 $ 49 $ 49 Number of Loans Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Six months ended June 30, 2019 Commercial, financial, agricultural 2 $ 187 $ 185 Real estate – 1-4 family mortgage 3 $ 305 $ 304 Total 5 $ 492 $ 489 Six months ended June 30, 2018 Real estate – 1-4 family mortgage 4 $ 625 $ 625 Real estate – commercial mortgage 1 83 78 Total 5 $ 708 $ 703 With respect to loans that were restructured during the six months ended June 30, 2019 , $61 have subsequently defaulted as of the date of this report. With respect to loans that were restructured during the six months ended June 30, 2018 , none 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 was one restructured loan in the amount of $37 contractually 90 days past due or more and still accruing at June 30, 2019 and two restructured loans in the amount of $468 contractually 90 days past due or more and still accruing at June 30, 2018 . The outstanding balance of restructured loans on nonaccrual status was $3,288 and $2,417 at June 30, 2019 and June 30, 2018 , respectively. Changes in the Company’s restructured loans are set forth in the table below: Number of Loans Recorded Investment Totals at January 1, 2019 51 $ 5,325 Additional advances or loans with concessions 5 498 Reclassified as performing restructured loan 1 41 Reductions due to: Reclassified as nonperforming (5 ) (465 ) Paid in full (5 ) (414 ) Principal paydowns — (85 ) Totals at June 30, 2019 47 $ 4,900 The allocated allowance for loan losses attributable to restructured loans was $30 and $37 at June 30, 2019 and June 30, 2018 , respectively. The Company had $1 and $22 in remaining availability under commitments to lend additional funds on these restructured loans at June 30, 2019 and June 30, 2018 , respectively. 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 June 30, 2019 Commercial, financial, agricultural $ 695,794 $ 13,891 $ 13,677 $ 723,362 Real estate – construction 641,131 2,759 8,872 652,762 Real estate – 1-4 family mortgage 321,905 4,561 3,170 329,636 Real estate – commercial mortgage 2,330,319 60,671 23,241 2,414,231 Installment loans to individuals 30 — — 30 Total $ 3,989,179 $ 81,882 $ 48,960 $ 4,120,021 December 31, 2018 Commercial, financial, agricultural $ 615,803 $ 18,326 $ 6,973 $ 641,102 Real estate – construction 558,494 2,317 8,157 568,968 Real estate – 1-4 family mortgage 321,564 4,660 4,260 330,484 Real estate – commercial mortgage 2,210,100 54,579 24,144 2,288,823 Installment loans to individuals — — — — Total $ 3,705,961 $ 79,882 $ 43,534 $ 3,829,377 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 June 30, 2019 Commercial, financial, agricultural $ 205,501 $ 1,735 $ 207,236 Lease financing 59,088 70 59,158 Real estate – construction 63,367 — 63,367 Real estate – 1-4 family mortgage 1,823,809 7,172 1,830,981 Real estate – commercial mortgage 325,144 2,027 327,171 Installment loans to individuals 96,232 122 96,354 Total $ 2,573,141 $ 11,126 $ 2,584,267 December 31, 2018 Commercial, financial, agricultural $ 233,046 $ 1,501 $ 234,547 Lease financing 61,776 89 61,865 Real estate – construction 66,551 — 66,551 Real estate – 1-4 family mortgage 1,751,994 5,412 1,757,406 Real estate – commercial mortgage 338,367 1,175 339,542 Installment loans to individuals 100,099 325 100,424 Total $ 2,551,833 $ 8,502 $ 2,560,335 (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: June 30, December 31, 2018 Commercial, financial, agricultural $ 374,478 $ 420,263 Real estate – construction 65,402 105,149 Real estate – 1-4 family mortgage 604,855 707,453 Real estate – commercial mortgage 1,276,567 1,423,144 Installment loans to individuals 29,064 37,408 Gross loans 2,350,366 2,693,417 Unearned income — — Loans, net of unearned income $ 2,350,366 $ 2,693,417 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 June 30, 2019 Commercial, financial, agricultural $ 3,755 $ 796 $ 368,967 $ 373,518 $ — $ 638 $ 322 $ 960 $ 374,478 Real estate – construction 107 — 65,295 65,402 — — — — 65,402 Real estate – 1-4 family mortgage 5,080 3,044 592,308 600,432 480 1,838 2,105 4,423 604,855 Real estate – commercial mortgage 3,404 3,747 1,267,915 1,275,066 108 1,062 331 1,501 1,276,567 Installment loans to individuals 414 100 28,184 28,698 — 113 253 366 29,064 Total $ 12,760 $ 7,687 $ 2,322,669 $ 2,343,116 $ 588 $ 3,651 $ 3,011 $ 7,250 $ 2,350,366 December 31, 2018 Commercial, financial, agricultural $ 1,811 $ 97 $ 417,786 $ 419,694 $ — $ 477 $ 92 $ 569 $ 420,263 Real estate – construction 1,235 68 103,846 105,149 — — — — 105,149 Real estate – 1-4 family mortgage 8,981 4,455 690,697 704,133 202 1,881 1,237 3,320 707,453 Real estate – commercial mortgage 5,711 2,410 1,413,346 1,421,467 — 1,401 276 1,677 1,423,144 Installment loans to individuals 1,342 202 35,594 37,138 2 24 244 270 37,408 Total $ 19,080 $ 7,232 $ 2,661,269 $ 2,687,581 $ 204 $ 3,783 $ 1,849 $ 5,836 $ 2,693,417 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 June 30, 2019 Commercial, financial, agricultural $ 1,038 $ 687 $ 335 $ 1,022 $ 63 Real estate – construction 256 256 — 256 2 Real estate – 1-4 family mortgage 6,095 2,194 3,234 5,428 21 Real estate – commercial mortgage 2,110 1,851 213 2,064 163 Installment loans to individuals 386 324 41 365 3 Total $ 9,885 $ 5,312 $ 3,823 $ 9,135 $ 252 December 31, 2018 Commercial, financial, agricultural $ 671 $ 600 $ 11 $ 611 $ 173 Real estate – construction 576 576 — 576 5 Real estate – 1-4 family mortgage 5,787 1,381 3,780 5,161 18 Real estate – commercial mortgage 2,266 2,066 146 2,212 338 Installment loans to individuals 280 246 24 270 3 Totals $ 9,580 $ 4,869 $ 3,961 $ 8,830 $ 537 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 June 30, 2019 June 30, 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial, financial, agricultural $ 1,010 $ 2 $ 380 $ 3 Real estate – construction 256 — — — Real estate – 1-4 family mortgage 5,415 36 5,135 34 Real estate – commercial mortgage 2,082 12 1,462 12 Installment loans to individuals 370 — 247 — Total $ 9,133 $ 50 $ 7,224 $ 49 Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial, financial, agricultural $ 941 $ 4 $ 383 $ 6 Lease financing — — — — Real estate – construction 256 3 — — Real estate – 1-4 family mortgage 5,450 66 5,252 74 Real estate – commercial mortgage 2,109 25 1,479 30 Installment loans to individuals 372 — 247 — Total $ 9,128 $ 98 $ 7,361 $ 110 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 June 30, 2019 Commercial, financial, agricultural $ 38,140 $ 4,064 $ 19,562 $ 23,626 $ 171 Real estate – 1-4 family mortgage 51,209 10,753 31,926 42,679 515 Real estate – commercial mortgage 142,859 58,507 63,191 121,698 1,978 Installment loans to individuals 6,660 658 2,684 3,342 2 Total $ 238,868 $ 73,982 $ 117,363 $ 191,345 $ 2,666 December 31, 2018 Commercial, financial, agricultural $ 44,403 $ 3,779 $ 25,364 $ 29,143 $ 161 Real estate – 1-4 family mortgage 53,823 12,169 36,074 48,243 488 Real estate – commercial mortgage 165,700 62,003 78,435 140,438 1,901 Installment loans to individuals 8,290 660 3,770 4,430 2 Totals $ 272,216 $ 78,611 $ 143,643 $ 222,254 $ 2,552 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 June 30, 2019 June 30, 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial, financial, agricultural $ 23,976 $ 388 $ 12,815 $ 192 Real estate – 1-4 family mortgage 43,011 571 54,634 647 Real estate – commercial mortgage 122,455 1,674 162,712 1,933 Installment loans to individuals 3,560 95 1,651 18 Total $ 193,002 $ 2,728 $ 231,812 $ 2,790 Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial, financial, agricultural $ 25,667 $ 863 $ 13,051 $ 417 Lease financing — — — — Real estate – construction — — — — Real estate – 1-4 family mortgage 43,360 1,161 55,293 1,320 Real estate – commercial mortgage 123,526 3,474 163,959 3,905 Installment loans to individuals 3,780 201 1,640 36 Total $ 196,333 $ 5,699 $ 233,943 $ 5,678 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. Number of Loans Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Three months ended June 30, 2019 Commercial, financial, agricultural 1 $ 2,520 $ 2,520 Real estate – commercial mortgage 1 80 76 Total 2 $ 2,600 $ 2,596 Three months ended June 30, 2018 Real estate – 1-4 family mortgage 1 $ 18 $ 17 Total 1 $ 18 $ 17 Number of Loans Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Six months ended June 30, 2019 Commercial, financial, agricultural 1 $ 2,520 $ 2,520 Real estate – commercial mortgage 1 80 76 Total 2 $ 2,600 $ 2,596 Six months ended June 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 With respect to loans that were restructured during the six months ended June 30, 2019 , none have subsequently defaulted as of the date of this report. With respect to loans that were restructured during the six months ended June 30, 2018 , $5 have subsequently defaulted within twelve months of the restructuring. There was one restructured loan in the amount of $167 contractually 90 days past due or more and still accruing at June 30, 2019 and four restructured loans in the amount of $425 contractually 90 days past due or more and still accruing at June 30, 2018 . The outstanding balance of restructured loans on nonaccrual status was $1,276 and $684 at June 30, 2019 and June 30, 2018 , respectively. Changes in the Company’s restructured loans are set forth in the table below: Number of Loans Recorded Investment Totals at January 1, 2019 54 $ 7,495 Additional advances or loans with concessions 2 2,823 Reclassified as performing restructured loan 5 1,461 Reductions due to: Reclassified to nonperforming loans (9 ) (746 ) Paid in full (5 ) (128 ) Principal paydowns — (296 ) Totals at June 30, 2019 47 $ 10,609 The allocated allowance for loan losses attributable to restructured loans was $79 and $69 at June 30, 2019 and June 30, 2018 , respectively. The Company had $3 and $2 in remaining availability under commitments to lend additional funds on these restructured loans at June 30, 2019 and June 30, 2018 , 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 June 30, 2019 Commercial, financial, agricultural $ 299,893 $ 24,250 $ 12,654 $ 336,797 Real estate – construction 63,553 — — 63,553 Real estate – 1-4 family mortgage 91,968 4,979 6,234 103,181 Real estate – commercial mortgage 1,048,170 63,602 13,542 1,125,314 Installment loans to individuals — — 1 1 Total $ 1,503,584 $ 92,831 $ 32,431 $ 1,628,846 December 31, 2018 Commercial, financial, agricultural $ 333,147 $ 33,857 $ 2,744 $ 369,748 Real estate – construction 101,122 — 842 101,964 Real estate – 1-4 family mortgage 113,874 7,347 7,585 128,806 Real estate – commercial mortgage 1,198,540 43,046 9,984 1,251,570 Installment loans to individuals — — 2 2 Total $ 1,746,683 $ 84,250 $ 21,157 $ 1,852,090 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 June 30, 2019 Commercial, financial, agricultural $ 14,006 $ 49 $ 14,055 Real estate – construction 1,849 — 1,849 Real estate – 1-4 family mortgage 455,510 3,485 458,995 Real estate – commercial mortgage 29,447 108 29,555 Installment loans to individuals 25,326 395 25,721 Total $ 526,138 $ 4,037 $ 530,175 December 31, 2018 Commercial, financial, agricultural $ 21,303 $ 69 $ 21,372 Real estate – construction 3,185 — 3,185 Real estate – 1-4 family mortgage 526,699 3,705 530,404 Real estate – commercial mortgage 30,951 185 31,136 Installment loans to individuals 32,676 300 32,976 Total $ 614,814 $ 4,259 $ 619,073 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 June 30, 2019 Commercial, financial, agricultural $ 23,626 Real estate – 1-4 family mortgage 42,679 Real estate – commercial mortgage 121,698 Installment loans to individuals 3,342 Total $ 191,345 December 31, 2018 Commercial, financial, agricultural $ 29,143 Real estate – 1-4 family mortgage 48,243 Real estate – commercial mortgage 140,438 Installment loans to individuals 4,430 Total $ 222,254 The following table presents the fair value of loans that exhibited evidence of deteriorated credit quality at the time of acquisition at June 30, 2019 : Total Purchased Credit Deteriorated Loans Contractually-required principal and interest $ 273,362 Nonaccretable difference (1) (54,172 ) Cash flows expected to be collected 219,190 Accretable yield (2) (27,845 ) Fair value $ 191,345 (1) Represents contractual principal and interest cash flows of $45,518 and $8,654 , respectively, not expected to be collected. (2) Represents contractual principal and interest cash flows of $1,584 and $26,260 , respectively, expected to be collected. Changes in the accretable yield of loans purchased with deteriorated credit quality were as follows as of June 30, 2019 : Total Purchased Credit Deteriorated Loans Balance at January 1, 2019 $ (34,265 ) Reclassification from nonaccretable difference (4,470 ) Accretion 9,757 Charge-offs 1,133 Balance at June 30, 2019 $ (27,845 ) 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 $ 1,625,079 Nonaccretable difference (123,399 ) Cash flows expected to be collected 1,501,680 Accretable yield (170,651 ) Fair value $ 1,331,029 |