Loans | Loans The composition of the loan portfolio, by class of loan, at June 30, 2020 and December 31, 2019 was as follows: June 30, 2020 December 31, 2019 (In thousands) Loan Accrued Recorded Loan Accrued Recorded Commercial, financial and agricultural * $ 1,736,696 $ 5,313 $ 1,742,009 $ 1,185,110 $ 4,393 $ 1,189,503 Commercial real estate * 1,632,625 6,830 1,639,455 1,609,413 5,571 1,614,984 Construction real estate: Commercial 245,339 792 246,131 233,637 826 234,463 Mortgage 105,489 261 105,750 96,574 228 96,802 Installment 1,156 4 1,160 1,488 4 1,492 Residential real estate: Commercial 498,697 1,311 500,008 479,081 1,339 480,420 Mortgage 1,234,017 1,951 1,235,968 1,176,316 1,381 1,177,697 HELOC 204,442 740 205,182 224,766 1,113 225,879 Installment 10,718 32 10,750 12,563 32 12,595 Consumer 1,506,434 4,620 1,511,054 1,452,375 4,314 1,456,689 Leases 28,832 13 28,845 30,081 20 30,101 Total loans $ 7,204,445 $ 21,867 $ 7,226,312 $ 6,501,404 $ 19,221 $ 6,520,625 * Included within each of commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that are not broken out by class. In order to support customers, Park participated in the CARES Act Paycheck Protection Program ("PPP"). Included within commercial, financial and agricultural loans are $543.1 million of PPP loans. For its assistance in making and retaining these loans, Park received an aggregate of $20.2 million in fees from the SBA, of which $2.8 million were recognized during the three months ended June 30, 2020. Loans are shown net of deferred origination fees, costs and unearned income of $32.9 million and $16.3 million at June 30, 2020 and December 31, 2019, respectively, which represented a net deferred income position at each date. At June 30, 2020, included in the net deferred origination fees, costs and unearned income of $32.9 million were $16.8 million in net origination fees related to PPP loans. At June 30, 2020 and December 31, 2019, loans included purchase accounting adjustments of $9.2 million and $11.7 million, respectively, which represented a net deferred income position at each date. This fair market value purchase accounting adjustment related to loans which are not PCI, is expected to be recognized into interest income on a level yield basis over the remaining expected life of the loans. Overdrawn deposit accounts of $3.7 million and $2.2 million had been reclassified to loans at June 30, 2020 and December 31, 2019, respectively, and are included in the commercial, financial and agricultural loan class above. Credit Quality The following tables present the recorded investment in nonaccrual loans, accruing TDRs, and loans past due 90 days or more and still accruing by class of loan at June 30, 2020 and December 31, 2019: June 30, 2020 (In thousands) Nonaccrual Accruing Loans Past Due Total Commercial, financial and agricultural $ 21,897 $ 8,297 $ — $ 30,194 Commercial real estate 50,490 3,581 645 54,716 Construction real estate: Commercial 631 — — 631 Mortgage 520 17 — 537 Installment — 16 — 16 Residential real estate: Commercial 5,257 — — 5,257 Mortgage 15,415 8,406 784 24,605 HELOC 1,790 869 14 2,673 Installment 435 1,897 — 2,332 Consumer 2,330 974 320 3,624 Leases 1,641 — — 1,641 Total loans $ 100,406 $ 24,057 $ 1,763 $ 126,226 December 31, 2019 (In thousands) Nonaccrual Accruing Loans Past Due Total Commercial, financial and agricultural $ 26,776 $ 6,349 $ 28 $ 33,153 Commercial real estate 39,711 2,080 625 42,416 Construction real estate: Commercial 453 — — 453 Mortgage 25 84 — 109 Installment 72 5 — 77 Residential real estate: Commercial 2,025 — — 2,025 Mortgage 15,271 8,826 1,209 25,306 HELOC 2,062 1,010 44 3,116 Installment 462 1,964 — 2,426 Consumer 3,089 980 645 4,714 Leases 134 — 186 320 Total loans $ 90,080 $ 21,298 $ 2,737 $ 114,115 The following table provides additional information regarding those nonaccrual and accruing TDR loans that are individually evaluated for impairment and those collectively evaluated for impairment at June 30, 2020 and December 31, 2019. June 30, 2020 December 31, 2019 Nonaccrual and Accruing TDRs Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment Nonaccrual and Accruing TDRs Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment Commercial, financial and agricultural $ 30,194 $ 30,183 $ 11 $ 33,125 $ 33,088 $ 37 Commercial real estate 54,071 54,071 — 41,791 41,791 — Construction real estate: Commercial 631 631 — 453 453 — Mortgage 537 — 537 109 — 109 Installment 16 — 16 77 — 77 Residential real estate: Commercial 5,257 5,257 — 2,025 2,025 — Mortgage 23,821 — 23,821 24,097 — 24,097 HELOC 2,659 — 2,659 3,072 — 3,072 Installment 2,332 — 2,332 2,426 — 2,426 Consumer 3,304 — 3,304 4,069 — 4,069 Leases 1,641 1,641 — 134 134 — Total loans $ 124,463 $ 91,783 $ 32,680 $ 111,378 $ 77,491 $ 33,887 All of the loans individually evaluated for impairment were evaluated using the fair value of the collateral or the present value of expected future cash flows as the measurement method. The following table presents loans individually evaluated for impairment by class of loan at June 30, 2020 and December 31, 2019. June 30, 2020 December 31, 2019 (In thousands) Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated With no related allowance recorded Commercial, financial and agricultural $ 16,019 $ 15,897 $ — $ 21,194 $ 21,010 $ — Commercial real estate 53,709 53,505 — 41,696 41,471 — Construction real estate: Commercial 631 631 — 453 453 — Residential real estate: Commercial 5,225 5,157 — 1,921 1,854 — Leases 216 216 — — — — With an allowance recorded Commercial, financial and agricultural 14,483 14,286 5,239 12,289 12,078 5,104 Commercial real estate 566 566 80 320 320 35 Construction real estate: Commercial — — — — — — Residential real estate: Commercial 100 100 22 171 171 42 Leases 1,425 1,425 467 134 134 49 Total $ 92,374 $ 91,783 $ 5,808 $ 78,178 $ 77,491 $ 5,230 Management’s general practice is to proactively charge down loans individually evaluated for impairment to the fair value of the underlying collateral. At both June 30, 2020 and December 31, 2019, there were $0.5 million of partial charge-offs on loans individually evaluated for impairment with no related allowance recorded and $197,000 and $210,000, respectively, of partial charge-offs on loans individually evaluated for impairment that also had a specific reserve allocated. The allowance for loan losses included specific reserves related to loans individually evaluated for impairment at June 30, 2020 and December 31, 2019, of $5.8 million and $5.2 million, respectively. These loans with specific reserves had a recorded investment of $16.4 million and $12.7 million at June 30, 2020 and December 31, 2019, respectively. Interest income on nonaccrual loans individually evaluated for impairment is recognized on a cash basis only when Park expects to receive the entire recorded investment in the loans. Interest income on accruing TDRs individually evaluated for impairment continues to be recorded on an accrual basis. The following table presents the average recorded investment and interest income recognized subsequent to impairment on loans individually evaluated for impairment as of and for the three-month and six-month periods ended June 30, 2020 and 2019: Three Months Ended Three Months Ended (In thousands) Recorded Investment at June 30, 2020 Average Interest Recorded Investment at June 30, 2019 Average Interest Commercial, financial and agricultural $ 30,183 $ 29,859 $ 180 $ 19,586 $ 16,136 $ 90 Commercial real estate 54,071 49,599 409 26,461 30,050 255 Construction real estate: Commercial 631 493 4 2,243 2,559 10 Residential real estate: Commercial 5,257 5,400 78 1,874 1,909 25 Leases 1,641 506 — 91 23 — Total $ 91,783 $ 85,857 $ 671 $ 50,255 $ 50,677 $ 380 Six Months Ended Six Months Ended (In thousands) Recorded Investment at June 30, 2020 Average Interest Recorded Investment at June 30, 2019 Average Interest Commercial, financial and agricultural $ 30,183 $ 30,931 $ 384 $ 19,586 $ 15,628 $ 137 Commercial real estate 54,071 46,582 890 26,461 29,209 526 Construction real estate: Commercial 631 460 8 2,243 2,330 22 Residential real estate: Commercial 5,257 3,960 101 1,874 2,277 45 Leases 1,641 346 — 91 13 — Total $ 91,783 $ 82,279 $ 1,383 $ 50,255 $ 49,457 $ 730 The following tables present the aging of the recorded investment in past due loans at June 30, 2020 and December 31, 2019 by class of loan. June 30, 2020 (In thousands) Accruing Loans Past Due Nonaccrual Loans and Loans Past Due 90 Days or More and Accruing (1) Total Past Due Total Current (2) Total Recorded Commercial, financial and agricultural $ 1,887 $ 12,239 $ 14,126 $ 1,727,883 $ 1,742,009 Commercial real estate 144 1,351 1,495 1,637,960 1,639,455 Construction real estate: Commercial — 25 25 246,106 246,131 Mortgage 398 — 398 105,352 105,750 Installment 14 — 14 1,146 1,160 Residential real estate: Commercial 152 797 949 499,059 500,008 Mortgage 6,390 8,332 14,722 1,221,246 1,235,968 HELOC 347 718 1,065 204,117 205,182 Installment 62 180 242 10,508 10,750 Consumer 3,367 902 4,269 1,506,785 1,511,054 Leases — 26 26 28,819 28,845 Total loans $ 12,761 $ 24,570 $ 37,331 $ 7,188,981 $ 7,226,312 (1) Includes an aggregate of $1.8 million of loans past due 90 days or more and accruing. The remaining loans were past due nonaccrual loans. (2) Includes an aggregate of $77.6 million of nonaccrual loans which were current in regards to contractual principal and interest payments. December 31, 2019 (in thousands) Accruing Loans Past Due Nonaccrual Loans and Loans Past Due 90 Days or More and Accruing (1) Total Past Due Total Current (2) Total Recorded Commercial, financial and agricultural $ 582 $ 12,407 $ 12,989 $ 1,176,514 $ 1,189,503 Commercial real estate 160 1,143 1,303 1,613,681 1,614,984 Construction real estate: Commercial — — — 234,463 234,463 Mortgage 397 — 397 96,405 96,802 Installment 24 — 24 1,468 1,492 Residential real estate: Commercial — 908 908 479,512 480,420 Mortgage 12,841 9,153 21,994 1,155,703 1,177,697 HELOC 652 779 1,431 224,448 225,879 Installment 164 338 502 12,093 12,595 Consumer 6,561 1,621 8,182 1,448,507 1,456,689 Leases 368 186 554 29,547 30,101 Total loans $ 21,749 $ 26,535 $ 48,284 $ 6,472,341 $ 6,520,625 (1) Includes an aggregate of $2.7 million of loans past due 90 days or more and accruing. The remaining loans were past due nonaccrual loans. (2) Includes an aggregate of $66.3 million of nonaccrual loans which were current in regards to contractual principal and interest payments. Credit Quality Indicators Management utilizes past due information as a credit quality indicator across the loan portfolio. Past due information at June 30, 2020 and December 31, 2019 is included in the previous tables. The past due information is the primary credit quality indicator within the following classes of loans: (1) mortgage loans and installment loans in the construction real estate segment; (2) mortgage loans, HELOC and installment loans in the residential real estate segment; and (3) consumer loans. The primary credit indicator for commercial loans is based on an internal grading system that grades all commercial loans on a scale from 1 to 8. Credit grades are continuously monitored by the responsible loan officer and adjustments are made when appropriate. A grade of 1 indicates little or no credit risk and a grade of 8 is considered a loss. Commercial loans that are pass-rated (graded a 1 through a 4) are considered to be of acceptable credit risk. Commercial loans graded a 5 (special mention) are considered to be watch list credits and a higher loan loss reserve percentage is allocated to these loans. Loans classified as special mention have potential weaknesses that require management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of Park’s credit position at some future date. Commercial loans graded a 6 (substandard), also considered watch list credits, are considered to represent higher credit risk and, as a result, a higher loan loss reserve percentage is allocated to these loans. Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the obligor or the value of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that Park will sustain some loss if the deficiencies are not corrected. Commercial loans graded a 7 (doubtful) are shown as nonaccrual and Park generally charges these loans down to their fair value by taking a partial charge-off or recording a specific reserve. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Certain 6-rated loans and all 7-rated loans are placed on nonaccrual status and included within the impaired category. A loan is deemed impaired when management determines the borrower's ability to perform in accordance with the contractual loan agreement is in doubt. Any commercial loan graded an 8 (loss) is completely charged off. The tables below present the recorded investment by loan grade at June 30, 2020 and December 31, 2019 for all commercial loans: June 30, 2020 (In thousands) 5 Rated 6 Rated Nonaccrual and Accruing TDRs Purchase Credit Impaired (1) Pass-Rated Recorded Commercial, financial and agricultural * $ 11,216 $ — $ 30,194 $ 453 $ 1,700,146 $ 1,742,009 Commercial real estate * 63,235 113 54,071 8,547 1,513,489 1,639,455 Construction real estate: Commercial — — 631 1,022 244,478 246,131 Residential real estate: Commercial 542 25 5,257 1,556 492,628 500,008 Leases 436 — 1,641 140 26,628 28,845 Total commercial loans $ 75,429 $ 138 $ 91,794 $ 11,718 $ 3,977,369 $ 4,156,448 * Included within each of commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that are not broken out by class. (1) There were no loans acquired with deteriorated credit quality which were nonaccrual or TDRs at June 30, 2020 . December 31, 2019 (In thousands) 5 Rated 6 Rated Nonaccrual and Accruing TDRs Purchase Credit Impaired (1) Pass-Rated Recorded Commercial, financial and agricultural * $ 11,981 $ 3 $ 33,125 $ 966 $ 1,143,428 $ 1,189,503 Commercial real estate * 6,796 945 41,791 9,182 1,556,270 1,614,984 Construction real estate: Commercial 4,857 1 453 1,044 228,108 234,463 Residential real estate: Commercial 3,839 30 2,025 1,754 472,772 480,420 Leases — — 134 523 29,444 30,101 Total Commercial Loans $ 27,473 $ 979 $ 77,528 $ 13,469 $ 3,430,022 $ 3,549,471 * Included within each of commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that are not broken out by class. (1) Excludes loans acquired with deteriorated credit quality which are nonaccrual or TDRs due to additional credit deterioration or modification post acquisition. These loans had a recorded investment of $6,000 at December 31, 2019. Loans and Leases Acquired with Deteriorated Credit Quality In conjunction with the NewDominion acquisition, Park acquired loans with a book value of $277.9 million as of the July 1, 2018 acquisition date. These loans were recorded at the initial fair value of $272.8 million. Loans acquired with deteriorated credit quality with a book value of $5.1 million were recorded at the initial fair value of $4.9 million. The carrying amount of loans acquired with deteriorated credit quality at June 30, 2020 and December 31, 2019 was $2.1 million and $3.0 million, respectively, while the outstanding customer balance was $2.3 million and $3.2 million, respectively. At June 30, 2020 and December 31, 2019, an allowance for loan losses of $5,000 and $101,000, respectively, had been recognized related to the acquired impaired loans. In conjunction with the Carolina Alliance acquisition, Park acquired loans and leases with a book value of $589.7 million as of the April 1, 2019 acquisition date. These loans and leases were recorded at the initial fair value of $578.6 million. Loans and leases acquired with deteriorated credit quality with a book value of $19.9 million were recorded at the initial fair value of $18.4 million. The carrying amount of loans and leases acquired with deteriorated credit quality at June 30, 2020 and December 31, 2019 was $10.4 million and $11.3 million, respectively, while the outstanding customer balance was $12.8 million and $13.8 million, respectively. At June 30, 2020 and December 31, 2019, an allowance for loan losses of $101,000 and $167,000, respectively, had been recognized related to the acquired impaired loans and leases. Troubled Debt Restructurings Management typically classifies loans as TDRs when a borrower is experiencing financial difficulties and Park has granted a concession to the borrower as part of a modification or in the loan renewal process. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of the borrower's debt in the foreseeable future without the modification. This evaluation is performed in accordance with the Company’s internal underwriting policy. Management’s policy is to modify loans by extending the term or by granting a temporary or permanent contractual interest rate below the market rate, not by forgiving debt. A court's discharge of a borrower's debt in a Chapter 7 bankruptcy is considered a concession when the borrower does not reaffirm the discharged debt. Additionally, Park is working with borrowers impacted by the COVID-19 pandemic and providing modifications to include either interest only deferral or principal and interest deferral, in each case, for initial periods up to 90 days. As necessary, Park is making available a second 90-day interest only deferral or principal and interest deferral bringing the total potential deferral period to six months. A majority of these modifications are excluded from TDR classification under Section 4013 of the CARES Act or under applicable interagency guidance of the federal banking regulators. In accordance with this guidance, such modified loans will be considered current and will continue to accrue interest during the deferral period. Certain other loans which were modified during the three-month periods ended June 30, 2020 and June 30, 2019 did not meet the definition of a TDR as the modification was a delay in a payment that was considered to be insignificant. Management considers a forbearance period of up to three months or a delay in payment of up to 30 days to be insignificant. TDRs may be classified as accruing if the borrower has been current for a period of at least six months with respect to loan payments and management expects that the borrower will be able to continue to make payments in accordance with the terms of the restructured note. Management reviews all accruing TDRs quarterly to ensure payments continue to be made in accordance with the modified terms. At June 30, 2020 and December 31, 2019, there were $27.3 million and $34.3 million, respectively, of TDRs included in the nonaccrual loan totals. At June 30, 2020 and December 31, 2019, $16.7 million and $23.2 million, respectively, of these nonaccrual TDRs were performing in accordance with the terms of the restructured note. At June 30, 2020 and December 31, 2019, loans with a recorded investment of $24.1 million and $21.3 million, respectively, were included in accruing TDR loan totals. Management will continue to review the restructured loans and may determine it is appropriate to move certain nonaccrual TDRs to accrual status in the future. At June 30, 2020 and December 31, 2019, Park had commitments to lend $3.3 million and $7.9 million, respectively, of additional funds to borrowers whose outstanding loan terms had been modified in a TDR. At June 30, 2020 and December 31, 2019, there were $2.1 million and $2.2 million, respectively, of specific reserves related to TDRs. Modifications made in 2020 and 2019 were largely the result of renewals and extending the maturity date of the loans at terms consistent with the original notes. These modifications were deemed to be TDRs primarily due to Park’s conclusion that the borrower would likely not have qualified for similar terms through another lender. Many of the modifications deemed to be TDRs were previously identified as impaired loans, and thus were also previously evaluated for impairment under ASC 310. There were no additional specific reserves recorded during either of the three-month or six-month periods ended June 30, 2020 as a result of TDRs identified in the period. There were $1,000 of additional specific reserves recorded during both the three-month and six-month periods ended June 30, 2019 as a result of TDRs identified in the period. Quarterly, management reviews renewals/modifications of loans previously identified as TDRs to consider if it is appropriate to remove the TDR classification. If the borrower is no longer experiencing financial difficulty and the renewal/modification did not contain a concessionary interest rate or other concessionary terms and the terms of the renewal/modification are considered to be market terms based on the current risk characteristics of the borrower, management considers the potential removal of the TDR classification. If deemed appropriate, the TDR classification is removed if the borrower has complied with the terms of the loan at the date of the renewal/modification and there was a reasonable expectation that the borrower would continue to comply with the terms of the loan subsequent to the date of the renewal/modification. The majority of these TDRs were originally considered restructurings in a prior year as a result of a renewal/modification with an interest rate that was not commensurate with the risk of the underlying loan at the time of the renewal/modification. The TDR classification was removed on $884,000 of loans during the three-month and six-month periods ended June 30, 2020. There were no TDR classifications removed during the three-month period ended June 30, 2019. The TDR classification was removed on $23,000 of loans during the six-month period ended June 30, 2019. The terms of certain other loans were modified during the three-month and six-month periods ended June 30, 2020 and June 30, 2019 that did not meet the definition of a TDR. Excluding COVID-19 related modifications, there were $0.1 million and $0.2 million of substandard commercial loans modified during the three-month and six-month periods ended June 30, 2020, respectively, which did not meet the definition of a TDR. There were no substandard commercial loans modified during the three-month and six-month periods ended June 30, 2019 which did not meet the definition of a TDR. Excluding COVID-19 related modifications, consumer loans modified during the three-month and six-month periods ended June 30, 2020 which did not meet the definition of a TDR had a total recorded investment of $39.4 million and $45.3 million, respectively. Consumer loans modified during the three-month and six-month periods ended June 30, 2019 which did not meet the definition of a TDR had a total recorded investment of $7.4 million and $13.4 million, respectively. Many of these loans were to borrowers who were not experiencing financial difficulties but who were looking to reduce their cost of funds. Park modified $386.9 million and $635.0 million of commercial loans in COVID-19 related modifications during the three-month and six-month periods ended June 30, 2020, respectively. Of the $635.0 million in commercial COVID-19 related modifications, $6.1 million were already classified as TDRs due to previous modifications and $82,000 were classified as TDRs due to the COVID-19 modification. The remaining loans met the exclusion criteria for TDR accounting either in Section 4013 of the CARES Act or in applicable interagency guidance. During the three-month and six-month periods ended June 30, 2020, Park modified $108.3 million and $113.3 million, respectively, of consumer loans in COVID-19 related modifications. Of the $113.3 million in consumer COVID-19 modifications, $1.7 million were already classified as TDRs due to previous modifications and $655,000 were classified as TDRs due to the COVID-19 modification. The remaining loans met the exclusion criteria for TDR accounting either in Section 4013 of the CARES Act or in applicable interagency guidance. The following tables detail the number of contracts modified as TDRs during the three-month periods ended June 30, 2020 and June 30, 2019, as well as the recorded investment of these contracts at June 30, 2020 and June 30, 2019. The recorded investment pre- and post-modification is generally the same due to the fact that Park does not typically forgive principal. Three Months Ended (In thousands) Number of Accruing Nonaccrual Total Commercial, financial and agricultural 3 $ 82 $ 2 $ 84 Commercial real estate 2 — 1,643 1,643 Construction real estate: Commercial — — — — Mortgage — — — — Installment — — — — Residential real estate: Commercial 1 — 16 16 Mortgage 13 868 922 1,790 HELOC 2 — 28 28 Installment 5 108 32 140 Consumer 56 88 426 514 Total loans 82 $ 1,146 $ 3,069 $ 4,215 Three Months Ended (In thousands) Number of Accruing Nonaccrual Total Commercial, financial and agricultural 11 $ 1,802 $ 642 $ 2,444 Commercial real estate 2 — 780 780 Construction real estate: Commercial — — — — Mortgage 1 71 — 71 Installment — — — — Residential real estate: Commercial 1 — 36 36 Mortgage 6 — 374 374 HELOC 5 99 67 166 Installment 8 365 45 410 Consumer 105 60 903 963 Total loans 139 $ 2,397 $ 2,847 $ 5,244 Of those loans which were modified and determined to be a TDR during the three-month period ended June 30, 2020, $43,000 were on nonaccrual status at December 31, 2019. Of those loans which were modified and determined to be a TDR during the three-month period ended June 30, 2019, $0.6 million were on nonaccrual status at December 31, 2018. The following tables detail the number of contracts modified as TDRs during the six-month periods ended June 30, 2020 and June 30, 2019, as well as the recorded investment of these contracts at June 30, 2020 and June 30, 2019. The recorded investment pre- and post-modification is generally the same due to the fact that Park does not typically forgive principal. Six Months Ended (In thousands) Number of Accruing Nonaccrual Total Commercial, financial and agricultural 7 $ 82 $ 1,074 $ 1,156 Commercial real estate 4 1,141 1,703 2,844 Construction real estate: Commercial — — — — Mortgage 1 10 — 10 Installment 1 14 — 14 Residential real estate: Commercial 1 — 16 16 Mortgage 19 980 1,123 2,103 HELOC 5 3 37 40 Installment 13 213 49 262 Consumer 113 136 539 675 Total loans 164 $ 2,579 $ 4,541 $ 7,120 Six Months Ended (In thousands) Number of Accruing Nonaccrual Total Commercial, financial and agricultural 16 $ 1,801 $ 1,099 $ 2,900 Commercial real estate 4 — 2,995 2,995 Construction real estate: Commercial 1 456 — 456 Mortgage 1 71 — 71 Installment — — — — Residential real estate: Commercial 1 — 36 36 Mortgage 14 54 619 673 HELOC 8 100 136 236 Installment 16 550 46 596 Consumer 174 60 1,159 1,219 Total loans 235 $ 3,092 $ 6,090 $ 9,182 Of those loans which were modified and determined to be a TDR during the six-month period ended June 30, 2020, $0.3 million were on nonaccrual status at December 31, 2019. Of those loans which were modified and determined to be a TDR during the six-month period ended June 30, 2019, $1.3 million were on nonaccrual status at December 31, 2018. The following tables present the recorded investment in loans which were modified as TDRs within the previous 12 months and for which there was a payment default during the three-month and six-month periods ended June 30, 2020 and June 30, 2019, respectively. For these tables, a loan is considered to be in default when it becomes 30 days contractually past due under the modified terms. The additional allowance for loan loss resulting from the defaults on TDR loans was immaterial. Three Months Ended Three Months Ended (In thousands) Number of Recorded Number of Recorded Commercial, financial and agricultural 1 $ 4,043 6 $ 91 Commercial real estate — — — — Construction real estate: Commercial — — — — Mortgage — — — — Installment 1 14 — — Residential real estate: Commercial 1 16 — — Mortgage 3 294 5 345 HELOC 2 37 5 67 Installment 2 30 2 67 Consumer 20 179 61 674 Leases — — — — Total loans 30 $ 4,613 79 $ 1,244 Of the $4.6 million in modified TDRs which defaulted during the three-month period ended June 30, 2020, $4.2 million were accruing loans and $0.4 million were nonaccrual loans. Of the $1.2 million in modified TDRs which defaulted during the three-month period ended June 30, 2019, $30,000 were accruing loans and $1.2 million were nonaccrual loans. Six Months Ended Six Months Ended (In thousands) Number of Recorded Number of Recorded Commercial, financial and agricultural 2 $ 4,051 7 $ 160 Commercial real estate — — — — Construction real estate: Commercial — — — — Mortgage — — — — Installment 1 14 — — Residential real estate: Commercial 1 16 — — Mortgage 3 294 7 382 HELOC 2 37 5 67 Installment 2 30 2 67 Consumer 23 218 69 720 Leases — — — — Total loans 34 $ 4,660 90 $ 1,396 Of the $4.7 million in modified TDRs which defaulted during the six-month period ended June 30, 2020, $4.2 million were accruing loans and $0.5 million were nonaccrual loans. Of the $1.4 million in modified TDRs which defaulted during the six-month period ended June 30, 2019, $30,000 were accruing loans and $1.4 million were nonaccrual loans. |