The following table details the Company’s loans at and

 

		March 31, 2019				December 31, 2018
		(Dollars In Thousands)
Commercial, financial and agricultural		$	2,522,136			$	2,513,225
Real estate - construction			556,219				533,192
Real estate - mortgage:
Owner-occupied commercial			1,500,595				1,463,887
1-4 family mortgage			629,285				621,634
Other mortgage			1,394,611				1,337,068
Subtotal: Real estate - mortgage			3,524,491				3,422,589
Consumer			57,062				64,493
Total Loans			6,659,908				6,533,499
Less: Allowance for loan losses			(70,207	)			(68,600	)
Net Loans		$	6,589,701			$	6,464,899
Commercial, financial and agricultural			37.87	%			38.47	%
Real estate - construction			8.35	%			8.16	%
Real estate - mortgage:
Owner-occupied commercial			22.53	%			22.41	%
1-4 family mortgage			9.45	%			9.51	%
Other mortgage			20.94	%			20.46	%
Subtotal: Real estate - mortgage			52.92	%			52.38	%
Consumer			0.86	%			0.99	%
Total Loans			100.00	%			100.00	%

 

The credit quality of the loan portfolio is summarized less frequently than quarterly using categories similar to the standard asset classification system used by the federal banking agencies. The following table presents credit quality indicators for the loan loss portfolio segments and classes. These categories are utilized to develop the associated allowance for loan losses using historical losses adjusted for current economic conditions defined as follows:

 

 

Loans by credit quality indicator as of and were as follows:

 

March 31, 2019		Pass				Special Mention				Substandard				Doubtful				Total
		(In Thousands)
Commercial, financial and agricultural		$	2,456,885			$	47,075			$	18,176			$	–			$	2,522,136
Real estate - construction			548,656				6,944				619				–				556,219
Real estate - mortgage:
Owner-occupied commercial			1,470,108				26,929				3,558				–				1,500,595
1-4 family mortgage			625,458				1,976				1,851				–				629,285
Other mortgage			1,368,451				14,781				11,379				–				1,394,611
Total real estate - mortgage			3,464,017				43,686				16,788				–				3,524,491
Consumer			57,013				49				–				–				57,062
Total		$	6,526,571			$	97,754			$	35,583			$	–			$	6,659,908

 

December 31, 2018		Pass				Special Mention				Substandard				Doubtful				Total
		(In Thousands)
Commercial, financial and agricultural		$	2,447,052			$	47,754			$	18,419			$	–			$	2,513,225
Real estate - construction			525,021				6,749				1,422				–				533,192
Real estate - mortgage:
Owner-occupied commercial			1,431,982				28,547				3,358				–				1,463,887
1-4 family mortgage			616,884				2,703				2,047				–				621,634
Other mortgage			1,309,101				16,506				11,461				–				1,337,068
Total real estate - mortgage			3,357,967				47,756				16,866				–				3,422,589
Consumer			64,444				–				49				–				64,493
Total		$	6,394,484			$	102,259			$	36,756			$	–			$	6,533,499

 

Loans by performance status as of and were as follows:

 

March 31, 2019		Performing				Nonperforming				Total
		(In Thousands)
Commercial, financial and agricultural		$	2,510,619			$	11,517			$	2,522,136
Real estate - construction			555,981				238				556,219
Real estate - mortgage:
Owner-occupied commercial			1,497,037				3,558				1,500,595
1-4 family mortgage			627,435				1,850				629,285
Other mortgage			1,384,611				10,000				1,394,611
Total real estate - mortgage			3,509,083				15,408				3,524,491
Consumer			57,050				12				57,062
Total		$	6,632,733			$	27,175			$	6,659,908

 

December 31, 2018		Performing				Nonperforming				Total
		(In Thousands)
Commercial, financial and agricultural		$	2,502,117			$	11,108			$	2,513,225
Real estate - construction			532,195				997				533,192
Real estate - mortgage:
Owner-occupied commercial			1,460,529				3,358				1,463,887
1-4 family mortgage			619,465				2,169				621,634
Other mortgage			1,327,038				10,030				1,337,068
Total real estate - mortgage			3,407,032				15,557				3,422,589
Consumer			64,385				108				64,493
Total		$	6,505,729			$	27,770			$	6,533,499

 

Loans by past due status as of and were as follows:

 

March 31, 2019		Past Due Status (Accruing Loans)
		30-59 Days				60-89 Days				90+ Days				Total Past Due				Non-Accrual				Current				Total Loans
		(In Thousands)
Commercial, financial and agricultural		$	6,868			$	2,115			$	31			$	9,014			$	11,486			$	2,501,636			$	2,522,136
Real estate - construction			–				–				–				–				238				555,981				556,219
Real estate - mortgage:
Owner-occupied commercial			122				–				–				122				3,558				1,496,915				1,500,595
1-4 family mortgage			600				649				–				1,249				1,850				626,186				629,285
Other mortgage			37				–				4,978				5,015				5,022				1,384,574				1,394,611
Total real estate - mortgage			759				649				4,978				6,386				10,430				3,507,675				3,524,491
Consumer			41				12				12				65				–				56,997				57,062
Total		$	7,668			$	2,776			$	5,021			$	15,465			$	22,154			$	6,622,289			$	6,659,908

 

December 31, 2018		Past Due Status (Accruing Loans)
		30-59 Days				60-89 Days				90+ Days				Total Past Due				Non-Accrual				Current				Total Loans
		(In Thousands)
Commercial, financial and agricultural		$	1,222			$	48			$	605			$	1,875			$	10,503			$	2,500,847			$	2,513,225
Real estate - construction			–				1,352				–				1,352				997				530,843				533,192
Real estate - mortgage:
Owner-occupied commercial			412				–				–				412				3,358				1,460,117				1,463,887
1-4 family mortgage			534				235				123				892				2,046				618,696				621,634
Other mortgage			1,174				–				5,008				6,182				5,022				1,325,864				1,337,068
Total real estate - mortgage			2,120				235				5,131				7,486				10,426				3,404,677				3,422,589
Consumer			58				123				108				289				–				64,204				64,493
Total		$	3,400			$	1,758			$	5,844			$	11,002			$	21,926			$	6,500,571			$	6,533,499

 

The allowance for loan losses is maintained at a level which, in management’s judgment, is adequate to absorb credit losses inherent in the loan portfolio. The amount of the allowance is based on management’s evaluation of the collectability of the loan portfolio, including the nature of the portfolio, credit concentrations, trends in historical loss experience, specific impaired loans, economic conditions, and other risks inherent in the portfolio. Allowances for impaired loans are generally determined based on collateral values or the present value of the estimated cash flows. The allowance is increased by a provision for loan losses, which is charged to expense, and reduced by charge-offs, net of recoveries. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the allowance for losses on loans. Such agencies require the Company to recognize adjustments to the allowance based on their judgments about information available to them at the time of their examination.

 

The methodology utilized for the calculation of the allowance for loan losses is divided into distinct categories. Those categories include allowances for non-impaired loans (ASC ), impaired loans (ASC ), external qualitative factors, and internal qualitative factors. A description of each category of the allowance for loan loss methodology is listed below.

Non-impaired loans are grouped into the following homogeneous loan pools by loan type: commercial and industrial, construction and development, commercial real estate, lien home equity lines of credit, and all other loans. Each loan pool is stratified by internal risk rating and multiplied by a loss allocation percentage derived from the loan pool historical loss rate. The historical loss rate is based on an age weighted year history of net charge-offs experienced by pool, with the most recent net charge-off experience given a greater weighting. This results in the expected loss rate per year, adjusted by a qualitative adjustment factor and a years-to-impairment factor, for each pool of loans to derive the total amount of allowance for non-impaired loans.

 

Loans are considered impaired, when based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. The collection of all amounts due according to contractual terms means that both the contractual interest and principal payments of a loan will be collected as scheduled in the loan agreement. Impaired loans are measured based on the present value of expected future cash flows discounted at the rate implicit in the original loan agreement, at the loan’s observable market price or the fair value of the underlying collateral. The fair value of collateral, reduced by costs to sell on a discounted basis, is used if a loan is collateral-dependent. Fair value estimates for specifically impaired collateral-dependent loans are derived from appraised values based on the current market value or “as is” value of the property, normally from recently received and reviewed appraisals. Appraisals are obtained from certified and licensed appraisers and are based on certain assumptions, which include construction or development status and the highest and best use of the property.These appraisals are reviewed by our credit administration department, and values are adjusted downward to reflect anticipated disposition costs. Once this estimated net realizable value has been determined, the value used in the impairment assessment is updated for each impaired loan. As subsequent events dictate and estimated net realizable values decline, required reserves be established or further adjustments recorded.

 

. The determination of the portion of the allowance for loan losses relating to external qualitative factors is based on consideration of the following factors: gross domestic product growth rate, changes in prime rate, delinquency trends, peer delinquency trends, year over year loan growth and state unemployment rate trends. Data for the most recent periods is utilized in the calculation for each external qualitative component. The factors have a consistent weighted methodology to calculate the amount of allowance due to external qualitative factors.

 

. The determination of the portion of the allowance for loan losses relating to internal qualitative factors is based on the consideration of criteria which includes the following: number of extensions and deferrals, single pay and interest only loans, current financial information, credit concentrations and risk grade accuracy. A self-assessment for each of the criteria is made with a consistent weighted methodology used to calculate the amount of allowance required for internal qualitative factors.

 

The following table presents an analysis of the allowance for loan losses by portfolio segment and changes in the allowance for loan losses for the months ended and The total allowance for loan losses is disaggregated into those amounts associated with loans individually evaluated and those associated with loans collectively evaluated.

 

		Commercial, financial and agricultural				Real estate - construction				Real estate - mortgage				Consumer				Total
		(In Thousands)
		Three Months Ended March 31, 2019
Allowance for loan losses:
Balance at December 31, 2018		$	39,016			$	3,522			$	25,508			$	554			$	68,600
Charge-offs			(3,037	)			–				(50	)			(218	)			(3,305	)
Recoveries			12				1				7				7				27
Provision			3,468				72				1,246				99				4,885
Balance at March 31, 2019		$	39,459			$	3,595			$	26,711			$	442			$	70,207
			Three Months Ended March 31, 2018
Allowance for loan losses:
Balance at December 31, 2017		$	32,880			$	4,989			$	21,022			$	515			$	59,406
Charge-offs			(1,088	)			–				(381	)			(88	)			(1,557	)
Recoveries			4				7				42				9				62
Provision			3,991				(858	)			923				83				4,139
Balance at March 31, 2018		$	35,787			$	4,138			$	21,606			$	519			$	62,050
			As of March 31, 2019
Allowance for loan losses:
Individually Evaluated for Impairment		$	5,192			$	110			$	1,987			$	–			$	7,289
Collectively Evaluated for Impairment			34,267				3,485				24,724				442				62,918
Loans:
Ending Balance		$	2,522,136			$	556,219			$	3,524,491			$	57,062			$	6,659,908
Individually Evaluated for Impairment			18,197				656				17,891				49				36,793
Collectively Evaluated for Impairment			2,503,939				555,563				3,506,600				57,013				6,623,115
			As of December 31, 2018
Allowance for loan losses:
Individually Evaluated for Impairment		$	6,066			$	126			$	1,887			$	49			$	8,128
Collectively Evaluated for Impairment			32,950				3,396				23,621				505				60,472
Loans:
Ending Balance		$	2,513,225			$	533,192			$	3,422,589			$	64,493			$	6,533,499
Individually Evaluated for Impairment			18,444				1,461				18,637				49				38,591
Collectively Evaluated for Impairment			2,494,781				531,731				3,403,952				64,444				6,494,908

 

The following table presents details of the Company’s impaired loans as of and respectively. Loans which have been fully charged off do appear in the table.

 

		March 31, 2019
														For the three months ended March 31, 2019
		Recorded Investment				Unpaid Principal Balance				Related Allowance				Average Recorded Investment				Interest Income Recognized in Period
		(In Thousands)
With no allowance recorded:
Commercial, financial and agricultural		$	5,447			$	5,947			$	–			$	5,947			$	49
Real estate - construction			418				421				–				454				7
Real estate - mortgage:
Owner-occupied commercial			1,096				1,192				–				1,102				16
1-4 family mortgage			597				597				–				622				(1	)
Other mortgage			4,978				4,978				–				4,992				61
Total real estate - mortgage			6,671				6,767				–				6,716				76
Consumer			–				–				–				–				–
Total with no allowance recorded			12,536				13,135				–				13,117				132
With an allowance recorded:
Commercial, financial and agricultural			12,750				22,855				5,192				15,416				30
Real estate - construction			238				238				110				364				–
Real estate - mortgage:
Owner-occupied commercial			3,558				3,558				106				3,558				(1	)
1-4 family mortgage			1,253				1,253				301				1,253				–
Other mortgage			6,409				6,409				1,580				6,409				15
Total real estate - mortgage			11,220				11,220				1,987				11,220				14
Consumer			49				49				–				49				1
Total with allowance recorded			24,257				34,362				7,289				27,049				45
Total Impaired Loans:
Commercial, financial and agricultural			18,197				28,802				5,192				21,363				79
Real estate - construction			656				659				110				818				7
Real estate - mortgage:
Owner-occupied commercial			4,654				4,750				106				4,660				15
1-4 family mortgage			1,850				1,850				301				1,875				(1	)
Other mortgage			11,387				11,387				1,580				11,401				76
Total real estate - mortgage			17,891				17,987				1,987				17,936				90
Consumer			49				49				–				49				1
Total impaired loans		$	36,793			$	47,497			$	7,289			$	40,166			$	177

 

		December 31, 2018
														For the twelve months ended December 31, 2018
		Recorded Investment				Unpaid Principal Balance				Related Allowance				Average Recorded Investment				Interest Income Recognized In Period
		(In Thousands)
With no allowance recorded:
Commercial, financial and agricultural		$	6,064			$	6,064			$	–			$	6,142			$	237
Real estate - construction			464				467				–				524				28
Real estate - mortgage:
Owner-occupied commercial			1,763				1,947				–				2,223				120
1-4 family mortgage			1,071				1,071				–				1,088				21
Other mortgage			5,061				5,061				–				5,133				252
Total real estate - mortgage			7,895				8,079				–				8,444				393
Consumer			–				–				–				–				–
Total with no allowance recorded			14,423				14,610				–				15,110				658
With an allowance recorded:
Commercial, financial and agricultural			12,380				20,141				6,066				15,918				462
Real estate - construction			997				997				126				997				31
Real estate - mortgage:
Owner-occupied commercial			3,358				3,358				99				3,364				105
1-4 family mortgage			975				975				208				975				30
Other mortgage			6,409				6,409				1,580				6,598				217
Total real estate - mortgage			10,742				10,742				1,887				10,937				352
Consumer			49				49				49				49				3
Total with allowance recorded			24,168				31,929				8,128				27,901				848
Total Impaired Loans:
Commercial, financial and agricultural			18,444				26,205				6,066				22,060				699
Real estate - construction			1,461				1,464				126				1,521				59
Real estate - mortgage:
Owner-occupied commercial			5,121				5,305				99				5,587				225
1-4 family mortgage			2,046				2,046				208				2,063				51
Other mortgage			11,470				11,470				1,580				11,731				469
Total real estate - mortgage			18,637				18,821				1,887				19,381				745
Consumer			49				49				49				49				3
Total impaired loans		$	38,591			$	46,539			$	8,128			$	43,011			$	1,506

 

Troubled Debt Restructurings (“TDR”) at and totaled million, million and million, respectively. The portion of those TDRs accruing interest at and totaled million, million and million, respectively. At the Company had a related allowance for loan losses of million allocated to TDRs, compared to million at and million at There were modifications made to new TDRs or renewals of existing TDRs for the months ended and

 

There were commercial loans totaling million which were modified in the previous months (i.e., the months prior to default) which defaulted during the months ended There were loans which were modified in the previous months that defaulted during the months ended For purposes of this disclosure, default is defined as days past due and still accruing or placement on nonaccrual status.