Non Purchased Loans | Non Purchased Loans (In Thousands, Except Number of Loans) “Purchased” loans are those loans acquired in any of the Company’s previous acquisitions, including FDIC-assisted acquisitions. “Non purchased” loans include all of the Company’s other loans, other than loans held for sale. 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: 2019 2018 Commercial, financial, agricultural $ 1,052,353 $ 875,649 Lease financing 85,700 64,992 Real estate – construction 774,901 635,519 Real estate – 1-4 family mortgage 2,350,126 2,087,890 Real estate – commercial mortgage 3,128,876 2,628,365 Installment loans to individuals 199,843 100,424 Gross loans 7,591,799 6,392,839 Unearned income (3,825 ) (3,127 ) Loans, net of unearned income $ 7,587,974 $ 6,389,712 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, 2019 Commercial, financial, agricultural $ 605 $ 476 $ 1,045,802 $ 1,046,883 $ 387 $ 5,023 $ 60 $ 5,470 $ 1,052,353 Lease financing — — 85,474 85,474 — 226 — 226 85,700 Real estate – construction 794 — 774,107 774,901 — — — — 774,901 Real estate – 1-4 family mortgage 18,020 2,502 2,320,328 2,340,850 623 6,571 2,082 9,276 2,350,126 Real estate – commercial mortgage 2,362 276 3,119,785 3,122,423 372 4,655 1,426 6,453 3,128,876 Installment loans to individuals 1,000 204 198,555 199,759 — 17 67 84 199,843 Unearned income — — (3,825 ) (3,825 ) — — — — (3,825 ) Total $ 22,781 $ 3,458 $ 7,540,226 $ 7,566,465 $ 1,382 $ 16,492 $ 3,635 $ 21,509 $ 7,587,974 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 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 two restructured loans totaling $164 that were contractually 90 days past due or more and still accruing at December 31, 2019 . There was one restructured loan totaling $41 that was contractually 90 days past due or more and still accruing at December 31, 2018 . The outstanding balance of restructured loans on nonaccrual status was $3,058 and $3,128 at December 31, 2019 and 2018 , respectively. Impaired Loans Impaired loans recognized in conformity with ASC 310, segregated by class, were as follows as of the dates and for the periods presented: As of December 31, 2019 Year Ended December 31, 2019 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Commercial, financial, agricultural $ 5,722 $ 6,623 $ 1,222 $ 6,787 $ 30 Lease financing 226 226 3 231 — Real estate – construction — — — — — Real estate – 1-4 family mortgage 13,689 14,018 143 14,364 200 Real estate – commercial mortgage 7,361 8,307 390 7,034 120 Installment loans to individuals 84 91 1 97 2 Total $ 27,082 $ 29,265 $ 1,759 $ 28,513 $ 352 With no related allowance recorded: Commercial, financial, agricultural $ — $ — $ — $ — $ — Lease financing — — — — — Real estate – construction 9,145 9,145 — 8,516 438 Real estate – 1-4 family mortgage — — — — — Real estate – commercial mortgage 1,080 2,760 — 1,159 33 Installment loans to individuals — — — — — Total $ 10,225 $ 11,905 $ — $ 9,675 $ 471 Totals $ 37,307 $ 41,170 $ 1,759 $ 38,188 $ 823 As of December 31, 2018 Year Ended December 31, 2018 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Commercial, financial, agricultural $ 1,834 $ 2,280 $ 163 $ 2,079 $ 35 Lease financing — — — — — Real estate – construction 7,302 7,302 63 7,180 162 Real estate – 1-4 family mortgage 9,077 9,767 61 9,212 191 Real estate – commercial mortgage 4,609 5,765 689 4,889 72 Installment loans to individuals 223 232 1 239 2 Total $ 23,045 $ 25,346 $ 977 $ 23,599 $ 462 With no related allowance recorded: Commercial, financial, agricultural $ — $ — $ — $ — $ — Lease financing — — — — — Real estate – construction 2,165 2,165 — 2,165 55 Real estate – 1-4 family mortgage — — — — — Real estate – commercial mortgage 1,238 2,860 — 1,316 32 Installment loans to individuals — — — — — Total $ 3,403 $ 5,025 $ — $ 3,481 $ 87 Totals $ 26,448 $ 30,371 $ 977 $ 27,080 $ 549 The average recorded investment in impaired loans for the year ended December 31, 2017 was $21,998 . Interest income recognized on impaired loans for the year ended December 31, 2017 was $573 . Restructured Loans At December 31, 2019 , 2018 and 2017 , there were $4,679 , $5,325 and $5,588 , respectively, of restructured loans. The following table illustrates the impact of modifications classified as restructured loans held on the Consolidated Balance Sheets and still performing in accordance with their restructured terms at period end, segregated by class, as of the periods presented. Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment December 31, 2019 Commercial, financial, agricultural 2 $ 187 $ 185 Real estate – 1-4 family mortgage 5 460 459 Total 7 $ 647 $ 644 December 31, 2018 Real estate – 1-4 family mortgage 9 $ 1,764 $ 1,763 Real estate – commercial mortgage 2 94 89 Total 11 $ 1,858 $ 1,852 December 31, 2017 Commercial, financial, agricultural 2 $ 331 $ 330 Real estate – 1-4 family mortgage 8 598 586 Real estate – commercial mortgage 3 683 313 Installment loans to individuals 1 4 3 Total 14 $ 1,616 $ 1,232 At December 31, 2018 and December 31, 2017 the Company had $139 and $184 , respectively, in troubled debt restructurings that subsequently defaulted within twelve months of the restructuring. There were no such occurrences for the year ended December 31, 2019 . 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 advances or loans with concessions 11 1,861 Reclassified as performing 3 295 Reductions due to: Reclassified as nonperforming (8 ) (639 ) Paid in full (9 ) (1,556 ) Principal paydowns — (224 ) Totals at December 31, 2018 51 $ 5,325 Additional advances or loans with concessions 7 661 Reclassified as performing 5 252 Reductions due to: Reclassified as nonperforming (9 ) (808 ) Paid in full (8 ) (581 ) Principal paydowns — (170 ) Totals at December 31, 2019 46 $ 4,679 The allocated allowance for loan losses attributable to restructured loans was $125 and $34 at December 31, 2019 and 2018 , respectively. The Company had no remaining availability under commitments to lend additional funds on these restructured loans at December 31, 2019 and $42 in remaining availability under commitments to lend additional funds on these restructured loans at December 31, 2018 . 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 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. The “Pass” grade is 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 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, 2019 Commercial, financial, agricultural $ 779,798 $ 11,949 $ 11,715 $ 803,462 Real estate – construction 698,950 501 9,209 708,660 Real estate – 1-4 family mortgage 339,079 3,856 3,572 346,507 Real estate – commercial mortgage 2,737,629 31,867 26,711 2,796,207 Installment loans to individuals 6 — — 6 Total $ 4,555,462 $ 48,173 $ 51,207 $ 4,654,842 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, 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, 2019 Commercial, financial, agricultural $ 247,575 $ 1,316 $ 248,891 Lease financing 81,649 226 81,875 Real estate – construction 66,241 — 66,241 Real estate – 1-4 family mortgage 1,992,331 11,288 2,003,619 Real estate – commercial mortgage 330,714 1,955 332,669 Installment loans to individuals 199,549 288 199,837 Total $ 2,918,059 $ 15,073 $ 2,933,132 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 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, 2018 $ 22,225 New loans and advances 5,378 Payments received (1,723 ) Changes in related parties 36 Loans at December 31, 2019 $ 25,916 No related party loans were classified as past due, nonaccrual, impaired or restructured at December 31, 2019 or 2018 . Unfunded commitments to certain executive officers and directors and their associates totaled $7,266 and $6,982 at December 31, 2019 and 2018 , respectively. (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: 2019 2018 Commercial, financial, agricultural $ 315,619 $ 420,263 Lease financing — — Real estate – construction 51,582 105,149 Real estate – 1-4 family mortgage 516,487 707,453 Real estate – commercial mortgage 1,115,389 1,423,144 Installment loans to individuals 102,587 37,408 Gross loans 2,101,664 2,693,417 Unearned income — — Loans, net of unearned income $ 2,101,664 $ 2,693,417 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, 2019 Commercial, financial, agricultural $ 1,889 $ 998 $ 311,218 $ 314,105 $ — $ 1,246 $ 268 $ 1,514 $ 315,619 Lease financing — — — — — — — — — Real estate – construction 319 — 51,263 51,582 — — — — 51,582 Real estate – 1-4 family mortgage 5,516 2,244 503,826 511,586 605 2,762 1,534 4,901 516,487 Real estate – commercial mortgage 3,454 922 1,110,570 1,114,946 — 123 320 443 1,115,389 Installment loans to individuals 3,709 153 98,545 102,407 1 51 128 180 102,587 Unearned income — — — — — — — — — Total $ 14,887 $ 4,317 $ 2,075,422 $ 2,094,626 $ 606 $ 4,182 $ 2,250 $ 7,038 $ 2,101,664 December 31, 2018 Commercial, financial, agricultural $ 1,811 $ 97 $ 417,786 $ 419,694 $ — $ 477 $ 92 $ 569 $ 420,263 Lease financing — — — — — — — — — 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 Unearned income — — — — — — — — — Total $ 19,080 $ 7,232 $ 2,661,269 $ 2,687,581 $ 204 $ 3,783 $ 1,849 $ 5,836 $ 2,693,417 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 two restructured loans totaling $106 that were contractually 90 days past due or more and still accruing at December 31, 2019 . There were eight restructured loans totaling $413 that were contractually 90 days past due or more and still accruing at December 31, 2018 . The outstanding balance of restructured loans on nonaccrual status was $1,667 and $1,868 at December 31, 2019 and 2018 , respectively. Impaired Loans Non credit deteriorated loans that were subsequently impaired and recognized in conformity with ASC 310, segregated by class, were as follows as of the dates and for the periods presented: As of December 31, 2019 Year Ended December 31, 2019 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Commercial, financial, agricultural $ 1,837 $ 2,074 $ 212 $ 1,700 $ 8 Lease financing — — — — — Real estate – construction 2,499 2,490 16 2,386 3 Real estate – 1-4 family mortgage 2,801 2,914 17 2,900 41 Real estate – commercial mortgage 981 1,017 6 1,031 40 Installment loans to individuals 110 110 2 96 — Total $ 8,228 $ 8,605 $ 253 $ 8,113 $ 92 With no related allowance recorded: Commercial, financial, agricultural $ 901 $ 905 $ — $ 912 $ — Lease financing — — — — — Real estate – construction 772 779 — 770 — Real estate – 1-4 family mortgage 3,772 4,550 — 4,134 73 Real estate – commercial mortgage 128 131 — 137 7 Installment loans to individuals 71 92 — 85 — Total $ 5,644 $ 6,457 $ — $ 6,038 $ 80 Totals $ 13,872 $ 15,062 $ 253 $ 14,151 $ 172 As of December 31, 2018 Year Ended December 31, 2018 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Commercial, financial, agricultural $ 600 $ 658 $ 173 $ 614 $ 10 Lease financing — — — — — Real estate – construction 576 576 5 576 6 Real estate – 1-4 family mortgage 1,381 1,404 18 1,362 18 Real estate – commercial mortgage 2,066 2,116 338 2,011 40 Installment loans to individuals 246 247 3 247 1 Total $ 4,869 $ 5,001 $ 537 $ 4,810 $ 75 With no related allowance recorded: Commercial, financial, agricultural $ 11 $ 13 $ — $ 13 $ 1 Lease financing — — — — — Real estate – construction — — — — — Real estate – 1-4 family mortgage 3,780 4,383 — 4,407 111 Real estate – commercial mortgage 146 150 — 159 7 Installment loans to individuals 24 33 — 7 — Total $ 3,961 $ 4,579 $ — $ 4,586 $ 119 Totals $ 8,830 $ 9,580 $ 537 $ 9,396 $ 194 The average recorded investment in non credit deteriorated loans that were subsequently impaired for the year ended December 31, 2017 was $7,687 . Interest income recognized on non credit deteriorated loans that were subsequently impaired for the year ended December 31, 2017 was $299 . Credit deteriorated loans recognized in conformity with ASC 310-30, segregated by class, were as follows as of the dates and for the periods presented: As of December 31, 2019 Year Ended December 31, 2019 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Commercial, financial, agricultural $ 3,695 $ 7,370 $ 292 $ 6,919 $ 187 Lease financing — — — — — Real estate – construction — — — — — Real estate – 1-4 family mortgage 10,061 10,372 291 10,369 529 Real estate – commercial mortgage 52,501 55,017 1,386 54,885 2,904 Installment loans to individuals 640 640 2 652 29 Total $ 66,897 $ 73,399 $ 1,971 $ 72,825 $ 3,649 With no related allowance recorded: Commercial, financial, agricultural $ 25,843 $ 41,792 $ — $ 37,535 $ 1,208 Lease financing — — — — — Real estate – construction 863 882 — 618 21 Real estate – 1-4 family mortgage 25,482 32,597 — 26,687 1,665 Real estate – commercial mortgage 50,632 64,912 — 53,586 3,500 Installment loans to individuals 2,547 4,771 — 3,232 335 Total $ 105,367 $ 144,954 $ — $ 121,658 $ 6,729 Totals $ 172,264 $ 218,353 $ 1,971 $ 194,483 $ 10,378 As of December 31, 2018 Year Ended December 31, 2018 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Commercial, financial, agricultural $ 3,779 $ 4,071 $ 161 $ 4,276 $ 204 Lease financing — — — — — Real estate – construction — — — — — Real estate – 1-4 family mortgage 12,169 12,601 488 12,894 647 Real estate – commercial mortgage 62,003 65,273 1,901 65,756 3,201 Installment loans to individuals 660 660 2 675 29 Total $ 78,611 $ 82,605 $ 2,552 $ 83,601 $ 4,081 With no related allowance recorded: Commercial, financial, agricultural $ 25,364 $ 40,332 $ — $ 12,102 $ 669 Lease financing — — — — — Real estate – construction — — — — — Real estate – 1-4 family mortgage 36,074 41,222 — 36,801 1,647 Real estate – commercial mortgage 78,435 100,427 — 78,368 3,578 Installment loans to individuals 3,770 7,630 — 2,095 109 Total $ 143,643 $ 189,611 $ — $ 129,366 $ 6,003 Totals $ 222,254 $ 272,216 $ 2,552 $ 212,967 $ 10,084 The average recorded investment in credit-deteriorated loans for the year ended December 31, 2017 was $253,172 . Interest income recognized on credit-deteriorated loans for the year ended December 31, 2017 was $12,869 . Restructured Loans At December 31, 2019 , 2018 and 2017 , there were $7,275 , $7,495 and $8,965 , respectively, of restructured loans. The following table illustrates the impact of modifications classified as restructured loans held on the Consolidated Balance Sheets and still performing in accordance with their restructured terms at period end, segregated by class, as of the periods presented. Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment December 31, 2019 Commercial, financial, agricultural 2 $ 2,778 $ 2,778 Real estate – 1-4 family mortgage 2 73 73 Real estate – commercial mortgage 1 80 76 Total 5 $ 2,931 $ 2,927 December 31, 2018 Commercial, financial, agricultural 1 $ 48 $ 44 Real estate – 1-4 family mortgage 2 142 127 Real estate – commercial mortgage 2 522 381 Total 5 $ 712 $ 552 December 31, 2017 Real estate – 1-4 family mortgage 23 3,744 3,127 Real estate – commercial mortgage 5 3,115 2,231 Total 28 $ 6,859 $ 5,358 During the years ended December 31, 2019 , 2018 and 2017 , the Company had $101 , $5 and $212 , respectively, in troubled debt restructurings that subsequently defaulted within twelve months of the restructuring. Changes in the Company’s restructured loans are set forth in the table below. Number of Loans Recorded Investment Totals at January 1, 2018 72 $ 8,965 Additional advances or loans with concessions 5 712 Reclassified from nonperforming 4 435 Reductions due to: Reclassified as nonperforming (13 ) (1,229 ) Paid in full (14 ) (744 ) Principal paydowns — (644 ) Totals at December 31, 2018 54 $ 7,495 Additional advances or loans with concessions 5 3,168 Reclassified from nonperforming 14 1,931 Reductions due to: Reclassified as nonperforming (11 ) (1,964 ) Paid in full (7 ) (370 ) Charge-offs (1 ) (101 ) Principal paydowns — (508 ) Measurement period adjustment on recently acquired loans — (2,376 ) Totals at December 31, 2019 54 $ 7,275 The allocated allowance for loan losses attributable to restructured loans was $17 and $58 at December 31, 2019 and 2018 , respectively. The Company had $6 remaining availability under commitments to lend additional funds on these restructured loans at December 31, 2019 and $3 in remaining availability under commitments to lend additional funds on these restructured loans at December 31, 2018 . 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, 2019 Commercial, financial, agricultural $ 259,760 $ 7,166 $ 5,220 $ 272,146 Real estate – construction 48,994 — — 48,994 Real estate – 1-4 family mortgage 78,105 791 3,935 82,831 Real estate – commercial mortgage 909,513 56,334 15,835 981,682 Installment loans to individuals — — — — Total $ 1,296,372 $ 64,291 $ 24,990 $ 1,385,653 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 December 31, 2019 Commercial, financial, agricultural $ 13,935 $ — $ 13,935 Lease financing — — — Real estate – construction 1,725 — 1,725 Real estate – 1-4 family mortgage 394,476 3,638 398,114 Real estate – commercial mortgage 30,472 101 30,573 Installment loans to individuals 99,139 261 99,400 Total $ 539,747 $ 4,000 $ 543,747 December 31, 2018 Commercial, financial, agricultural $ 21,303 $ 69 $ 21,372 Lease financing — — — 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 December 31, 2019 Commercial, financial, agricultural $ 29,538 Lease financing — Real estate – construction 863 Real estate – 1-4 family mortgage 35,543 Real estate – commercial mortgage 103,133 Installment loans to individuals 3,187 Total $ 172,264 December 31, 2018 Commercial, financial, agricultural $ 29,143 Lease financing — Real estate – construction — 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 recognized in accordance with ASC 310-30 at the time of acquisition: Total Purchased Credit Deteriorated Loans December 31, 2019 Contractually-required principal and interest $ 247,383 Nonaccretable difference (1) (51,087 ) Cash flows expected to be collected 196,296 Accretable yield (2) (24,032 ) Fair value $ 172,264 December 31, 2018 Contractually-required principal and interest $ 319,214 Nonaccretable difference (1) (62,695 ) Cash flows expected to be collected 256,519 Accretable yield (2) (34,265 ) Fair value $ 222,254 (1) Represents contractual principal cash flows of $44,115 and $52,061 , respectively, and interest cash flows of $6,972 and $10,634 , respectively, not expected to be collected. (2) Represents contractual principal cash flows of $1,615 and $1,667 , respectively, and interest cash flows of $22,417 and $32,598 , respectively, expected to be collected. Changes in the accretable yield of loans purchased with deteriorated credit quality, recognized in accordance with ASC 310-30, were as follows: Total Purchased Credit Deteriorated Loans Balance at January 1, 2018 $ (32,207 ) Additions through acquisition (10,143 ) Reclasses from nonaccretable difference (7,883 ) Accretion 15,340 Charge-off 628 Balance at December 31, 2018 $ (34,265 ) Measurement period adjustment on recently acquired loans (3,712 ) Reclasses from nonaccretable difference (8,472 ) Accretion 20,873 Charge-off 1,544 Balance at December 31, 2019 $ (24,032 ) 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 (164,554 ) Cash flows expected to be collected 1,460,525 Accretable yield (138,318 ) Fair value $ 1,322,207 |