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LOANS (Tables)
 12 Months Ended
Dec. 31, 2017
Receivables [Abstract]  
Loan portfolio classified by type and class
The loan portfolio classified by type and class as of the dates set forth were as follows:
 
December 31, 2017
 
Originated
 
Acquired
 
Total
 
 
 
 
 
 
 
(Dollars in thousands)
Commercial & industrial
$
1,223,027

 
$
63,469

 
$
1,286,496

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


 
December 31, 2016
 
Originated
 
Acquired
 
Total
 
 
 
 
 
 
 
(Dollars in thousands)
Commercial & industrial
$
904,331

 
$
149,594

 
$
1,053,925

Real estate:
 

 
 

 
 

Owner occupied commercial real estate
264,876

 
129,334

 
394,210

Commercial real estate
816,029

 
327,722

 
1,143,751

Construction, land & land development
179,999

 
69,705

 
249,704

Residential mortgage
127,445

 
117,746

 
245,191

Consumer and other
9,248

 
2,191

 
11,439

Total loans held for investment
$
2,301,928

 
$
796,292

 
$
3,098,220

 
 
 
 
 
 
Total loans held for sale
$
23,989

 
$
—

 
$
23,989
Loan maturities and rate sensitivity
Loan maturities and rate sensitivity of the loans held for investment, as of the date indicated, were as follows:
 
December 31, 2017
 
Due in
One Year
or Less
 
Due After
One Year
Through
Five Years
 
Due After
Five Years
 
Total
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
Commercial & industrial
$
427,958

 
$
813,421

 
$
45,117

 
$
1,286,496

Real estate:
 

 
 

 
 

 
 

Owner occupied commercial real estate
31,254

 
156,620

 
227,356

 
415,230

Commercial real estate
223,695

 
615,560

 
228,524

 
1,067,779

Construction, land & land development
59,503

 
76,619

 
28,830

 
164,952

Residential mortgage
17,667

 
50,632

 
170,281

 
238,580

Consumer and other
5,900

 
2,916

 
8,632

 
17,448

 
 
 
 
 
 
 
 
Total loans held for investment
$
765,977

 
$
1,715,768

 
$
708,740

 
$
3,190,485

 
 
 
 
 
 
 
 
Fixed rate
$
118,482

 
$
376,552

 
$
99,340

 
$
594,374

Floating rate
647,495

 
1,339,216

 
609,400

 
2,596,111

 
 
 
 
 
 
 
 
Total loans held for investment
$
765,977

 
$
1,715,768

 
$
708,740

 
$
3,190,485
Analysis of related party loans
An analysis of activity with respect to these related-party loans for the periods ended December 31, 2017 and 2016 was as follows: 
 
December 31,
 
2017
 
2016
 
 
 
 
 
(Dollars in thousands)
Beginning balance
$
5,813

 
$
9,741

Advances
—

 
503

Repayments
(5,813
)
 
(4,431
)
Ending Balance
$
—

 
$
5,813
Outstanding principal balance of acquired loans
The outstanding principal balance and recorded investment in the total acquired loans from all acquisitions at December 31, 2017 and 2016, was as follows:
 
December 31,
 
2017
 
2016
 
 
 
 
 
(Dollars in thousands)
Credit impaired acquired loans:
 
 
 
Outstanding principal balance
$
18,498

 
$
30,694

Recorded investment
15,965

 
25,188

Discount, net
$
2,533

 
$
5,506

 
 
 
 
Other acquired loans:
 

 
 

Outstanding principal balance
499,939

 
775,709

Deferred fees, net
(72
)
 
(174
)
Recorded investment
498,029

 
771,104

Discount, net
$
1,838

 
$
4,431

 
 
 
 
Total acquired loans:
 

 
 

Outstanding principal balance
518,437

 
806,403

Deferred fees, net
(72
)
 
(174
)
Recorded investment
513,994

 
796,292

Discount, net
$
4,371

 
$
9,937
Changes in accretable yield for credit impaired acquired loans
Changes in the accretable yield for credit impaired acquired loans for the periods indicated, were as follows:
 
Year Ended December 31,
 
2017
 
2016
 
 
 
 
 
(Dollars in thousands)
Balance at beginning of period
$
2,544

 
$
966

Reclassifications (to) from nonaccretable discount
(20
)
 
3,233

Accretion
(1,399
)
 
(1,655
)
Balance at period end
$
1,125

 
$
2,544
Analysis of the aging of loans
The age analysis of loans, segregated by class, as of the dates set forth was as follows:
 
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

 
$
—

 
$
1,161,455

 
$
1,223,027

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

 
 
December 31, 2016
 
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
$
1,515

 
$
1,106

 
$
2,621

 
$
36,331

 
$
—

 
$
865,379

 
$
904,331

Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner occupied commercial real estate
1,941

 
—

 
1,941

 
—

 
—

 
262,935

 
264,876

Commercial real estate
1,612

 
—

 
1,612

 
2,059

 
—

 
812,358

 
816,029

Construction, land & land development
4,375

 
—

 
4,375

 
—

 
—

 
175,624

 
179,999

Residential mortgage
1,791

 
63

 
1,854

 
1,254

 
—

 
124,337

 
127,445

Consumer and other
139

 
—

 
139

 
119

 
—

 
8,990

 
9,248

Total originated loans
$
11,373

 
$
1,169

 
$
12,542

 
$
39,763

 
$
—

 
$
2,249,623

 
$
2,301,928

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquired Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial & industrial
$
2,854

 
$
—

 
$
2,854

 
$
23,424

 
$
4,506

 
$
118,810

 
$
149,594

Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner occupied commercial real estate
223

 
—

 
223

 
8,942

 
5,339

 
114,830

 
129,334

Commercial real estate
2,529

 
—

 
2,529

 
2,002

 
10,807

 
312,384

 
327,722

Construction, land & land development
488

 
—

 
488

 
978

 
1,819

 
66,420

 
69,705

Residential mortgage
2,768

 
—

 
2,768

 
1,692

 
2,717

 
110,569

 
117,746

Consumer and other
226

 
—

 
226

 
5

 
—

 
1,960

 
2,191

Total acquired loans
9,088

 
—

 
9,088

 
37,043

 
25,188

 
724,973

 
796,292

Total loans held for investment
$
20,461

 
$
1,169

 
$
21,630

 
$
76,806

 
$
25,188

 
$
2,974,596

 
$
3,098,220
Summary of impaired, non-accrual, and restructured 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:
 
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


 
December 31, 2016
 
Originated
 
Acquired
 
Total
 
 
 
 
 
 
 
(Dollars in thousands)
Nonaccrual loans
$
32,805

 
$
33,868

 
$
66,673

Accruing loans past due 90 days or more
1,169

 
—

 
1,169

Restructured loans - nonaccrual
6,959

 
3,174

 
10,133

Restructured loans - accruing
5,267

 
11,251

 
16,518

Total nonperforming loans
$
46,200

 
$
48,293

 
$
94,493
Impaired loans, individually evaluated for impairment
The following tables present additional information regarding impaired loans that were individually evaluated for impairment as of the dates indicated:
 
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



 
December 31, 2016
 
Recorded Investment
 
Unpaid Principal Balance
 
Related Allowance
 
 
 
 
 
 
 
(Dollars in thousands)
Originated Loans
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
Commercial & industrial
$
33,415

 
$
33,671

 
$
—

Commercial real estate
7,155

 
7,162

 
—

Residential mortgage
1,254

 
1,249

 
—

Consumer and other
96

 
96

 
—

Total with no related allowance recorded:
$
41,920

 
$
42,178

 
$
—

 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
Commercial & industrial
$
2,992

 
$
3,038

 
$
394

Residential mortgage
119

 
119

 
119

Total with an allowance recorded:
$
3,111

 
$
3,157

 
$
513

Total originated loans
$
45,031

 
$
45,335

 
$
513

 
 
 
 
 
 
Acquired Loans
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
Commercial & industrial
$
32,922

 
$
33,093

 
$
—

Owner occupied commercial real estate
8,942

 
8,949

 
—

Commercial real estate
2,002

 
2,026

 
—

Construction, land & land development
978

 
991

 
—

Residential mortgage
1,692

 
1,694

 
—

Consumer and other
2

 
2

 
—

Total with no related allowance recorded:
$
46,538

 
$
46,755

 
$
—

 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
            
Commercial & industrial
$
1,753

 
$
1,774

 
$
1,260

Consumer and other
2

 
3

 
2

Total with an allowance recorded:
$
1,755

 
$
1,777

 
$
1,262

Total acquired loans
$
48,293

 
$
48,532

 
$
1,262

 
 
 
 
 
 
Total:
 
 
 
 
 
Commercial & industrial
$
71,082

 
$
71,576

 
$
1,654

Real estate
22,023

 
22,071

 
—

Consumer and other
219

 
220

 
121

Total
$
93,324

 
$
93,867

 
$
1,775

 
Credit risk profile of loans
The credit risk profile of loans aggregated by class and internally assigned risk grades as of the dates set forth were as follows:
 
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
$
1,109,939

 
$
22,648

 
$
5,605

 
$
39,422

 
$
45,413

 
$
—

 
$
—

 
$
1,223,027

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

Consumer and Other
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

Consumer and Other
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


 
December 31, 2016
 
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
$
818,352

 
$
11,427

 
$
24,133

 
$
14,088

 
$
34,520

 
$
1,811

 
$
—

 
$
904,331

Owner Occupied Commercial Real Estate
247,868

 
13,169

 
513

 
3,326

 
—

 
—

 
—

 
264,876

Commercial Real Estate
716,744

 
35,812

 
55,230

 
6,184

 
2,059

 
—

 
—

 
816,029

Construction & Land Development
171,287

 
5,590

 
1,931

 
1,191

 
—

 
—

 
—

 
179,999

Residential Mortgage
118,042

 
6,079

 
573

 
1,497

 
1,254

 
—

 
—

 
127,445

Consumer and Other
9,032

 
5

 
58

 
34

 
119

 
—

 
—

 
9,248

Total originated loans
$
2,081,325

 
$
72,082

 
$
82,438

 
$
26,320

 
$
37,952

 
$
1,811

 
$
—

 
$
2,301,928

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquired Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial & Industrial
$
69,304

 
$
2,982

 
$
15,528

 
$
33,850

 
$
23,424

 
$
—

 
$
4,506

 
$
149,594

Owner Occupied Commercial Real Estate
94,450

 
2,533

 
9,788

 
8,282

 
8,942

 
—

 
5,339

 
129,334

Commercial Real Estate
248,583

 
23,854

 
39,833

 
2,643

 
2,002

 
—

 
10,807

 
327,722

Construction & Land Development
49,849

 
12,859

 
2,577

 
1,623

 
978

 
—

 
1,819

 
69,705

Residential Mortgage
111,818

 
948

 
215

 
356

 
1,692

 
—

 
2,717

 
117,746

Consumer and Other
1,972

 
—

 
214

 
—

 
5

 
—

 
—

 
2,191

Total acquired loans
$
575,976

 
$
43,176

 
$
68,155

 
$
46,754

 
$
37,043

 
$
—

 
$
25,188

 
$
796,292

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans
$
2,657,301

 
$
115,258

 
$
150,593

 
$
73,074

 
$
74,995

 
$
1,811

 
$
25,188

 
$
3,098,220

 
Troubled debt restructurings
Troubled debt restructurings identified during the periods indicated were as follows:
 
Year Ended
 
December 31, 2017
 
December 31, 2016
 
Number of Contracts
 
Pre-Modification
Outstanding
Recorded
Investment
 
Recorded Investment as of December 31, 2017
 
Number of
Contracts
 
Pre-Modification
Outstanding
Recorded
Investment
 
Recorded Investment as of December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
Commercial & industrial
3
 
$
2,526

 
$
898

 
8
 
$
23,396

 
$
21,272

Owner occupied commercial real estate
3
 
5,501

 
1,175

 
—
 
—

 
—

Construction, land & land development
2
 
831

 
$
—

 
—
 
—

 
—

Other consumer
1
 
208

 
208

 
—
 
—

 
—

Total
9
 
$
9,066

 
$
2,281

 
8
 
$
23,396

 
$
21,272