LOANS

The loan portfolio classified by type and class as of the dates set forth were as follows:



	September 30, 2018
	Originated		Acquired		Total

	(Dollars in thousands)
Commercial & industrial	$	1,114,467	$	28,266	$	1,142,733
Mortgage warehouse	236,307		—		236,307
Real estate:
Owner occupied commercial real estate	382,886		52,781		435,667
Commercial real estate	1,013,927		119,500		1,133,427
Construction, land & land development	137,634		15,623		153,257
Residential mortgage	177,168		71,878		249,046
Consumer and other	12,185		732		12,917
Total loans held for investment	$	3,074,574	$	288,780	$	3,363,354

Total loans held for sale	$	7,627	$	—	$	7,627



	December 31, 2017
	Originated		Acquired		Total

	(Dollars in thousands)
Commercial & industrial	$	1,002,797	$	63,469	$	1,066,266
Mortgage warehouse	220,230		—		220,230
Real estate:
Owner occupied commercial real estate	327,906		87,324		415,230
Commercial real estate	823,361		244,418		1,067,779
Construction, land & land development	136,998		27,954		164,952
Residential mortgage	149,021		89,559		238,580
Consumer and other	16,178		1,270		17,448
Total loans held for investment	$	2,676,491	$	513,994	$	3,190,485

Total loans held for sale	$	7,156	$	—	$	7,156

The loan portfolio is comprised of four types, commercial and industrial loans, mortgage warehouse, real estate loans and consumer and other loans. The real estate loans are further segregated into owner occupied commercial real estate, commercial real estate, which includes multi-family loans, construction, land and land development, which includes both commercial construction and loans for the construction of residential properties and residential mortgage, which includes first and second liens and home equity lines. Consumer and other loans includes various types of loans to consumers and overdrafts. Loans are further separated between loans originated by the Company and loans acquired.

Included in the loans held for investment balance was $13.5 million of net deferred loan origination fees and unamortized premium and discount at both September 30, 2018 and December 31, 2017. Also included in loans at September 30, 2018 and December 31, 2017 was $232 thousand and $1.4 million, respectively, in nonaccretable discount on acquired credit impaired loans. Accrued interest receivable on loans was $10.8 million and $8.8 million at September 30, 2018 and December 31, 2017, respectively. Consumer and other loans include overdrafts of $42 thousand and $48 thousand as of September 30, 2018 and December 31, 2017, respectively.

The loan portfolio consists of various types of loans made to borrowers principally located in the Houston and Dallas metropolitan areas. Although the portfolio is diversified and generally secured by various types of collateral, a substantial portion of its debtors’ ability to honor their obligations is dependent on local economic conditions, including conditions affecting the energy industry. The risks created by this geographic concentration have been considered by management in the determination of the adequacy of the allowance for loan losses. The Company does not have any significant concentration to any one industry or customer. As of September 30, 2018 and December 31, 2017, there were no concentrations of loans related to any single industry in excess of 10% of total loans.

Reserved-based energy loans outstanding represented approximately 0.4% and 0.6% of total funded loans as of September 30, 2018 and December 31, 2017, respectively. Energy-related service industry loans represented approximately 0.7% and 1.1% of total funded loans as of September 30, 2018 and December 31, 2017, respectively. As of September 30, 2018, and December 31, 2017, $14.3 million and $19.2 million of reserved-based energy loans and $10.0 million and $17.5 million of energy-related service industry loans were impaired, respectively.

Loan maturities and rate sensitivity of the loans held for investment, as of the date indicated, were as follows:



	September 30, 2018
	Due in One Year or Less		Due After One Year Through Five Years		Due After Five Years		Total

	(Dollars in thousands)
Commercial & industrial	$	406,028	$	663,102	$	73,603	$	1,142,733
Mortgage warehouse	126,581		109,726		—		236,307
Real estate:
Owner occupied commercial real estate	15,099		174,652		245,916		435,667
Commercial real estate	151,071		716,864		265,492		1,133,427
Construction, land & land development	35,854		83,126		34,277		153,257
Residential mortgage	19,517		46,408		183,121		249,046
Consumer and Other	3,856		2,217		6,844		12,917
Total loans held for investment	$	758,006	$	1,796,095	$	809,253	$	3,363,354

Fixed rate	$	116,653	$	528,920	$	108,931	$	754,504
Adjustable rate⁽¹⁾	641,353		1,267,175		700,322		2,608,850
Total loans held for investment	$	758,006	$	1,796,095	$	809,253	$	3,363,354


⁽¹⁾	Includes all adjustable rate loans irrespective of the time period to next interest rate reset.

In the ordinary course of business, the Company has granted loans to certain directors, officers and their affiliates. In the opinion of management, all transactions entered into between the Bank and such related parties have been and are in the ordinary course of business, made on the same terms and conditions as similar transactions with unaffiliated persons.

An analysis of activity with respect to these related-party loans for the nine months ended September 30, 2018 and the year ended December 31, 2017 was as follows:



	September 30, 2018		December 31, 2017

	(Dollars in thousands)
Beginning balance	$	—	$	5,813
Advances	—		—
Repayments	—		(5,813		)
Ending Balance	$	—	$	—

Acquired Loans — The outstanding principal balance and recorded investment in the total acquired loans from all completed acquisitions, as of the dates set forth, was as follows:



	September 30, 2018			December 31, 2017

	(Dollars in thousands)
Credit impaired acquired loans:
Outstanding principal balance	$	7,621		$	18,498
Recorded investment	7,037			15,965
Discount, net	$	584		$	2,533

Other acquired loans:
Outstanding principal balance	282,476			499,939
Deferred fees, net	(33		)	(72		)
Recorded investment	281,743			498,029
Discount, net	$	700		$	1,838

Total acquired loans:
Outstanding principal balance	290,097			518,437
Deferred fees, net	(33		)	(72		)
Recorded investment	288,780			513,994
Discount, net	$	1,284		$	4,371

Changes in the accretable yield for credit impaired acquired loans for the periods indicated, were as follows:



	Nine Months Ended September 30,
	2018			2017

	(Dollars in thousands)
Balance at beginning of period	$	1,125		$	2,544
Reclassifications from non-accretable discount	991			(422		)
Accretion	(1,763		)	(1,166		)
Balance at period end	$	353		$	956

Purchased credit impaired loans are evaluated on an ongoing basis after acquisition. Reclassifications between nonaccretable discount and accretable yield are recorded based on the current estimates of the timing and amount of expected future cash flows.

Nonaccrual and Past Due Loans — When management doubts a borrower’s ability to meet payment obligations, which typically occurs when principal or interest payments are more than 90 days past due, the loans are placed on nonaccrual status.

The age analysis of loans, segregated by class, as of the dates set forth was as follows:



	September 30, 2018
	Loans Past Due and Still Accruing
	30 - 89 Days Past Due		90 Days or More Past Due		Total		Nonaccrual		Purchased Credit Impaired		Current		Total Loans

	(Dollars in thousands)
Originated Loans
Commercial & industrial	$	10,960	$	2,413	$	13,373	$	35,824	$	—	$	1,065,270	$	1,114,467
Mortgage warehouse	—		—		—		—		—		236,307		236,307
Real estate:
Owner occupied commercial real estate	428		—		428		3,494		—		378,964		382,886
Commercial real estate	1,201		—		1,201		13,379		—		999,347		1,013,927
Construction, land & land development	1,622		—		1,622		1,457		—		134,555		137,634
Residential mortgage	943		490		1,433		3,658		—		172,077		177,168
Consumer and other	184		—		184		43		—		11,958		12,185
Total originated loans	$	15,338	$	2,903	$	18,241	$	57,855	$	—	$	2,998,478	$	3,074,574

Acquired Loans
Commercial & industrial	$	—	$	—	$	—	$	1,795	$	1,563	$	24,908	$	28,266
Real estate:
Owner occupied commercial real estate	778		—		778		1,671		14		50,318		52,781
Commercial real estate	1,942		976		2,918		—		3,594		112,988		119,500
Construction, land & land development	—		—		—		695		—		14,928		15,623
Residential mortgage	1,425		946		2,371		101		1,866		67,540		71,878
Consumer and other	47		—		47		4		—		681		732
Total acquired loans	$	4,192	$	1,922	$	6,114	$	4,266	$	7,037	$	271,363	$	288,780
Total loans held for investment	$	19,530	$	4,825	$	24,355	$	62,121	$	7,037	$	3,269,841	$	3,363,354



	December 31, 2017
	Loans Past Due and Still Accruing
	30 - 89 Days Past Due		90 Days or More Past Due		Total		Nonaccrual		Purchased Credit Impaired		Current		Total Loans

	(Dollars in thousands)
Originated Loans
Commercial & industrial	$	15,917	$	242	$	16,159	$	45,413	$	—	$	941,225	$	1,002,797
Mortgage warehouse	—		—		—		—		—		220,230		220,230
Real estate:
Owner occupied commercial real estate	1,109		—		1,109		—		—		326,797		327,906
Commercial real estate	16,250		—		16,250		—		—		807,111		823,361
Construction, land & land development	2,255		133		2,388		3,287		—		131,323		136,998
Residential mortgage	1,311		—		1,311		3,111		—		144,599		149,021
Consumer and other	127		—		127		49		—		16,002		16,178
Total originated loans	$	36,969	$	375	$	37,344	$	51,860	$	—	$	2,587,287	$	2,676,491

Acquired Loans
Commercial & industrial	$	—	$	—	$	—	$	1,901	$	3,237	$	58,331	$	63,469
Real estate:
Owner occupied commercial real estate	233		—		233		1,886		4,062		81,143		87,324
Commercial real estate	1,885		—		1,885		312		6,437		235,784		244,418
Construction, land & land development	204		—		204		714		—		27,036		27,954
Residential mortgage	804		—		804		454		2,229		86,072		89,559
Consumer and other	—		—		—		211		—		1,059		1,270
Total acquired loans	3,126		—		3,126		5,478		15,965		489,425		513,994
Total loans held for investment	$	40,095	$	375	$	40,470	$	57,338	$	15,965	$	3,076,712	$	3,190,485

Impaired Loans — The following is a summary of information related to impaired, nonaccrual and restructured loans and accruing loans past due 90 days or more as of the dates set forth:



	September 30, 2018
	Originated		Acquired		Total

	(Dollars in thousands)
Nonaccrual loans	$	56,956	$	3,255	$	60,211
Accruing loans past due 90 days or more	2,903		1,922		4,825
Restructured loans - nonaccrual	899		1,011		1,910
Restructured loans - accruing	7		3,002		3,009
Total nonperforming loans	$	60,765	$	9,190	$	69,955



	December 31, 2017
	Originated		Acquired		Total

	(Dollars in thousands)
Nonaccrual loans	$	43,797	$	4,095	$	47,892
Accruing loans past due 90 days or more	375		—		375
Restructured loans - nonaccrual	8,063		1,383		9,446
Restructured loans - accruing	4,255		8,838		13,093
Total nonperforming loans	$	56,490	$	14,316	$	70,806

Impaired loans of $62.1 million and $57.3 million at September 30, 2018 and December 31, 2017 respectively, have been categorized by management as nonaccrual loans. Interest foregone on nonaccrual loans for the three months ended September 30, 2018 and 2017 was approximately $1.4 million and $1.0 million, respectively, and for the nine months ended September 30, 2018 and 2017 was approximately $3.8 million and $3.8 million, respectively.

Based on an analysis of impaired loans at September 30, 2018 and December 31, 2017, an allowance of $9.2 million and $5.7 million, respectively, was allocated to impaired loans. The following tables present, for the periods indicated, the average recorded investment in impaired loans and the approximate amount of interest recognized on impaired loans. Interest recognized includes interest accrued on restructured loans that have performed based on their restructured terms and interest collected on nonaccrual loans that were paid in full during the period.



	Three Months Ended
	September 30, 2018				September 30, 2017
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized

	(Dollars in thousands)
Originated Loans
Commercial & industrial	$	40,139	$	—	$	41,829	$	47
Owner occupied commercial real estate	4,642		—		—		—
Commercial real estate	13,382		140		723		—
Construction, land & land development	486		—		3,016		—
Residential mortgage	3,807		—		1,023		97
Consumer and other	43		—		75		1
Total originated loans	$	62,499	$	140	$	46,666	$	145

Acquired Loans
Commercial & industrial	$	4,847	$	53	$	16,693	$	77
Owner occupied commercial real estate	1,688		46		6,918		—
Commercial real estate	67		9		42		—
Construction, land & land development	695		—		1,021		30
Residential mortgage	101		—		212		23
Consumer and other	205		—		214		—
Total acquired loans	$	7,603	$	108	$	25,100	$	130
Total	$	70,102	$	248	$	71,766	$	275



	Nine Months Ended
	September 30, 2018				September 30, 2017
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized

	(Dollars in thousands)
Originated Loans
Commercial & industrial	$	47,309	$	116	$	39,892	$	59
Owner occupied commercial real estate	2,320		—		—		—
Commercial real estate	5,251		140		2,744		—
Construction, land & land development	2,107		—		1,005		—
Residential mortgage	3,508		—		1,977		123
Consumer and other	48		—		136		3
Total originated loans	$	60,543	$	256	$	45,754	$	185

Acquired Loans
Commercial & industrial	$	8,242	$	295	$	21,989	$	348
Owner occupied commercial real estate	1,737		46		7,977		—
Commercial real estate	97		12		1,093		—
Construction, land & land development	703		—		1,186		45
Residential mortgage	151		—		900		32
Consumer and other	208		—		168		—
Total acquired loans	$	11,138	$	353	$	33,313	$	425
Total	$	71,681	$	609	$	79,067	$	610

The following tables present additional information regarding impaired loans that were individually evaluated for impairment as of the dates indicated:



	September 30, 2018
	Recorded Investment		Unpaid Principal Balance		Related Allowance

	(Dollars in thousands)
Originated Loans
With no related allowance recorded:
Commercial & industrial	$	10,354	$	10,530	$	—
Commercial real estate	13,379		13,379		—
Construction, land & land development	1,457		1,470		—
Residential mortgage	3,658		3,658		—
Total with no related allowance recorded:	$	28,848	$	29,037	$	—

With an allowance recorded:
Commercial & industrial	$	25,478	$	25,571	$	8,594
Owner occupied commercial real estate	3,494		3,494		531
Consumer and other	42		42		29
Total with an allowance recorded:	$	29,014	$	29,107	$	9,154
Total originated loans	$	57,862	$	58,144	$	9,154

Acquired Loans
With no related allowance recorded:
Commercial & industrial	$	4,491	$	4,491	$	—
Owner occupied commercial real estate	1,671		1,696		—
Construction, land & land development	695		697		—
Residential mortgage	101		102		—
Consumer and other	195		189		—
Total with no related allowance recorded:	$	7,153	$	7,175	$	—

With an allowance recorded:
Commercial & industrial	$	111	$	112	$	12
Consumer and other	4		4		4
Total with an allowance recorded:	$	115	$	116	$	16
Total acquired loans	$	7,268	$	7,291	$	16

Total:
Commercial & industrial	$	40,434	$	40,704	$	8,606
Real estate	24,455		24,496		531
Consumer and other	241		235		33
Total	$	65,130	$	65,435	$	9,170



	December 31, 2017
	Recorded Investment		Unpaid Principal Balance		Related Allowance

	(Dollars in thousands)
Originated Loans
With no related allowance recorded:
Commercial & industrial	$	32,794	$	32,974	$	—
Construction, land & land development	111		111		—
Residential mortgage	3,111		3,111		—
Consumer and other	12		12		—
Total with no related allowance recorded:	$	36,028	$	36,208	$	—

With an allowance recorded:
Commercial & industrial	$	16,862	$	16,943	$	5,409
Construction, land & land development	3,176		3,176		224
Consumer and other	49		49		30
Total with an allowance recorded:	$	20,087	$	20,168	$	5,663
Total originated loans	$	56,115	$	56,376	$	5,663

Acquired Loans
With no related allowance recorded:
Commercial & industrial	$	10,738	$	10,738	$	—
Owner occupied commercial real estate	1,886		1,910		—
Commercial real estate	312		312		—
Construction, land & land development	714		716		—
Residential mortgage	454		455		—
Consumer and other	208		202		—
Total with no related allowance recorded:	$	14,312	$	14,333	$	—

With an allowance recorded:
Consumer and other	$	4	$	4	$	4
Total with an allowance recorded:	$	4	$	4	$	4
Total acquired loans	$	14,316	$	14,337	$	4

Total:
Commercial & Industrial	$	60,394	$	60,655	$	5,409
Real Estate	9,764		9,791		224
Consumer and other	273		267		34
Total	$	70,431	$	70,713	$	5,667

Credit Quality — Internally assigned risk grades for loans are defined as follows:

Grade 1 (Highest Quality — No Apparent Risk) — This category includes loans to borrowers of unquestioned credit standing which are secured by readily marketable collateral of undisputed value, with appropriate margin. It also includes loans to borrowing entities with: excellent capitalization, liquidity and earnings levels; quality management; positive financial trends; and favorable industry conditions.

Grade 2 (Good Quality — Minimal Risk) — This category includes loans to investment grade entities with: good liquidity and financial condition, nominal term debt, strong debt service capability, solid management, and quality financial information. These loans are usually secured with current assets, but may be unsecured. Alternative financing from other lenders is generally available to these borrowers.

Grade 3 (Satisfactory Quality — Acceptable Risk — Tier One) — This category includes loans to entities maintaining fair liquidity and acceptable financial conditions. The level of term debt is moderate, with adequate debt service capability. Earnings may be volatile, but borrowers in this category generally do not show a loss within the last three years. Primary debt service must be supported by identified secondary repayment sources or by guarantors with adequate and proven responsibility and capacity.

Grade 4 (Satisfactory Quality — Acceptable Risk — Tier Two) — This category includes loans to borrowers maintaining acceptable financial conditions; however, borrowers may exhibit certain characteristics of leverage or asset dependency that reflect a greater level of risk than Tier One credits. This category may also include borrowers exhibiting explainable interim losses within the previous three years and/or industry characteristics that warrant frequent monitoring.

Grade 5 (Monitored Loans) — This category includes loans with trends or characteristics which, if continued, could result in impaired repayment ability. The borrower may exhibit a low degree of liquidity and relatively high leverage, erratic earnings history (including the possibility of a reported loss in the past four years), significant term debt and a nominal cushion for debt service capacity. Loans in this category may also include financing to start-up borrowers backed by experienced management and significant capital investment or established companies in distressed industry conditions.

Grade 6 (Other Assets Especially Mentioned) — This category includes loans which have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or a weakening of the Company’s credit position at some future date. Grade 6 loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification.

Grade 7 (Substandard — Accruing) — This category includes loans which are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any, or loans with identified weaknesses but where there is sufficient collateral value and/or cash flow coverage. This category includes loans that: (1)may require a secondary source of repayment (liquidation of collateral or repayment by a guarantor); (2) lack current financial information or appraisals; and/or (3) have collateral deficiencies such that the Company would be in an unsecured position with an obligor not deserving unsecured credit. This category may also include borrowers with operating losses in recent periods.

Grade 8 (Substandard — Nonaccrual) — This category includes loans with the same basic characteristics as Grade 7 loans that also meet the Company’s criteria for nonaccrual status, but do not warrant a Grade 9 or Grade 10 classification.

Grade 9 (Doubtful/Exposure) — This category includes loans with all the Grade 7 or 8 characteristics but with weaknesses that make collection (or liquidation) highly questionable and improbable.

Grade 10 (Loss) — This category includes loans which are considered uncollectible, or of such little value that they should no longer be carried as an asset of the Company.

The credit risk profile of loans aggregated by class and internally assigned risk grades as of the dates set forth were as follows:



	September 30, 2018
	Grade 1 - 4 (Pass)		Grade 5 (Watch)		Grade 6 (Special Mention)		Grade 7 (Substandard-Accrual)		Grade 8 (Substandard-Nonaccrual)		Grade 9 (Doubtful)		PCI		Total

	(Dollars in thousands)
Originated Loans
Commercial & Industrial	$	972,237	$	68,791	$	22,179	$	15,436	$	35,824	$	—	$	—	$	1,114,467
Mortgage Warehouse	236,307		—		—		—		—		—		—		236,307
Owner Occupied Commercial Real Estate	353,041		9,546		9,918		6,887		3,494		—		—		382,886
Commercial Real Estate	851,864		90,208		22,091		36,385		13,379		—		—		1,013,927
Construction & Land Development	121,480		8,300		—		6,397		1,457		—		—		137,634
Residential Mortgage	171,997		424		—		1,089		3,658		—		—		177,168
Other Consumer	12,142		—		—		—		43		—		—		12,185
Total originated loans	$	2,719,068	$	177,269	$	54,188	$	66,194	$	57,855	$	—	$	—	$	3,074,574
Acquired Loans
Commercial & Industrial	$	16,044	$	5,171	$	3,638	$	55	$	1,795	$	—	$	1,563	$	28,266
Owner Occupied Commercial Real Estate	44,106		6,550		162		278		1,671		—		14		52,781
Commercial Real Estate	90,396		14,186		11,324		—		—		—		3,594		119,500
Construction & Land Development	2,505		11,893		—		530		695		—		—		15,623
Residential Mortgage	68,635		101		1,141		34		101		—		1,866		71,878
Other Consumer	519		—		194		15		4		—		—		732
Total acquired loans	$	222,205	$	37,901	$	16,459	$	912	$	4,266	$	—	$	7,037	$	288,780
Total loans	$	2,941,273	$	215,170	$	70,647	$	67,106	$	62,121	$	—	$	7,037	$	3,363,354



	December 31, 2017
	Grade 1 - 4 (Pass)		Grade 5 (Watch)		Grade 6 (Special Mention)		Grade 7 (Substandard-Accrual)		Grade 8 (Substandard-Nonaccrual)		Grade 9 (Doubtful)		PCI		Total

	(Dollars in thousands)
Originated Loans
Commercial & Industrial	$	889,709	$	22,648	$	5,605	$	39,422	$	45,413	$	—	$	—	$	1,002,797
Mortgage Warehouse	220,230		—		—		—		—		—		—		220,230
Owner Occupied Commercial Real Estate	314,497		3,096		7,658		2,655		—		—		—		327,906
Commercial Real Estate	681,691		45,149		85,431		11,090		—		—		—		823,361
Construction & Land Development	121,893		970		—		10,848		3,287		—		—		136,998
Residential Mortgage	138,239		6,529		—		1,142		3,111		—		—		149,021
Other Consumer	16,113		2		—		14		49		—		—		16,178
Total originated loans	$	2,382,372	$	78,394	$	98,694	$	65,171	$	51,860	$	—	$	—	$	2,676,491
Acquired Loans
Commercial & Industrial	$	38,000	$	3,172	$	11,101	$	6,058	$	1,901	$	—	$	3,237	$	63,469
Owner Occupied Commercial Real Estate	72,592		8,499		—		285		1,886		—		4,062		87,324
Commercial Real Estate	173,765		43,775		20,129		—		312		—		6,437		244,418
Construction & Land Development	14,549		12,136		—		555		714		—		—		27,954
Residential Mortgage	85,461		1,023		202		190		454		—		2,229		89,559
Other Consumer	1,059		—		—		—		211		—		—		1,270
Total acquired loans	$	385,426	$	68,605	$	31,432	$	7,088	$	5,478	$	—	$	15,965	$	513,994
Total loans	$	2,767,798	$	146,999	$	130,126	$	72,259	$	57,338	$	—	$	15,965	$	3,190,485

Troubled Debt Restructurings — The restructuring of a loan is considered a troubled debt restructuring if both the borrower is experiencing financial difficulties and the creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses.

Troubled debt restructurings identified during the periods indicated were as follows:



	Nine Months Ended
	September 30, 2018					September 30, 2017
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Recorded Investment		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Recorded Investment

	(Dollars in thousands)
Commercial & industrial	—	$	—	$	—	3	$	2,526	$	2,468
Owner occupied commercial real estate	—	—		—		3	5,501		5,448
Construction, land & land development	—	—		—		2	831		814
Consumer and other	—	—		—		1	208		208
Total	—	$	—	$	—	9	$	9,066	$	8,938

The modifications primarily relate to extending the maturity date of the loans, which includes loans modified post-bankruptcy. The Company did not forgive any principal or interest on the restructured loans. For the nine months ended September 30, 2018, the Company did not add any new troubled debt restructuring. For the nine months ended September 30, 2017, the Company added $9.1 million in new troubled debt restructuring and $8.9 million was outstanding on September 30, 2017.

Troubled debt restructurings are individually evaluated for impairment. The allowance for loan losses included specific reserves of $243 thousand related to $899 thousand of these loans at September 30, 2018.