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LOANS (Tables)
3 Months Ended
Mar. 31, 2018
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:
 
 
March 31, 2018
 
 
Originated
 
Acquired
 
Total
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
Commercial & industrial
 
$
991,125

 
$
47,590

 
$
1,038,715

Mortgage warehouse
 
185,849

 

 
185,849

Real estate:
 
 
 
 
 
 
Owner occupied commercial real estate
 
352,138

 
83,228

 
435,366

Commercial real estate
 
861,687

 
207,145

 
1,068,832

Construction, land & land development
 
122,274

 
26,458

 
148,732

Residential mortgage
 
156,255

 
86,274

 
242,529

Consumer and other
 
15,399

 
914

 
16,313

Total loans held for investment
 
$
2,684,727

 
$
451,609

 
$
3,136,336

 
 
 
 
 
 
 
Total loans held for sale
 
$
7,461

 
$

 
$
7,461

 
 
 
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

Loan maturities and rate sensitivity
Loan maturities and rate sensitivity of the loans held for investment, as of the date indicated, were as follows:
 
 
March 31, 2018
 
 
Due in
One Year
or Less
 
Due After
One Year
Through
Five Years
 
Due After
Five Years
 
Total
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
Commercial & industrial
 
$
379,735

 
$
591,714

 
$
67,266

 
$
1,038,715

Mortgage warehouse
 
60,153

 
125,696

 

 
185,849

Real estate:
 
 
 
 
 
 
 
 
Owner occupied commercial real estate
 
22,806

 
166,466

 
246,094

 
435,366

Commercial real estate
 
222,084

 
617,481

 
229,267

 
1,068,832

Construction, land & land development
 
43,196

 
80,257

 
25,279

 
148,732

Residential mortgage
 
12,555

 
51,659

 
178,315

 
242,529

Consumer and Other
 
6,180

 
2,084

 
8,049

 
16,313

Total loans held for investment
 
$
746,709

 
$
1,635,357

 
$
754,270

 
$
3,136,336

 
 
 
 
 
 
 
 
 
Fixed rate
 
$
146,451

 
$
399,363

 
$
95,986

 
$
641,800

Adjustable rate(1)
 
600,258

 
1,235,994

 
658,284

 
2,494,536

Total loans held for investment
 
$
746,709

 
$
1,635,357

 
$
754,270

 
$
3,136,336


(1) 
Includes all adjustable rate loans irrespective of the time period to next interest rate reset.
Related party loans
An analysis of activity with respect to these related-party loans for the three months ended March 31, 2018 and the year ended December 31, 2017 was as follows:
 
 
March 31, 2018
 
December 31, 2017
 
 
 
 
 
 
 
(Dollars in thousands)
Beginning balance
 
$

 
$
5,813

Advances
 

 

Repayments
 

 
(5,813
)
Ending Balance
 
$

 
$

Outstanding principal and investment in 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:
 
 
March 31, 2018
 
December 31, 2017
 
 
 
 
 
 
 
(Dollars in thousands)
Credit impaired acquired loans:
 
 
 
 
Outstanding principal balance
 
$
13,693

 
$
18,498

Recorded investment
 
11,702

 
15,965

Discount, net
 
$
1,991

 
$
2,533

 
 
 
 
 
Other acquired loans:
 
 
 
 
Outstanding principal balance
 
441,459

 
499,939

Deferred fees, net
 
(48
)
 
(72
)
Recorded investment
 
439,907

 
498,029

Discount, net
 
$
1,504

 
$
1,838

 
 
 
 
 
Total acquired loans:
 
 
 
 
Outstanding principal balance
 
455,152

 
518,437

Deferred fees, net
 
(48
)
 
(72
)
Recorded investment
 
451,609

 
513,994

Discount, net
 
$
3,495

 
$
4,371

Changes in the accretable yield for credit impaired acquired loans
Changes in the accretable yield for credit impaired acquired loans for the periods indicated, were as follows:
 
 
Three Months Ended March 31,
 
 
2018
 
2017
 
 
 
 
 
 
 
(Dollars in thousands)
Balance at beginning of period
 
$
1,125

 
$
2,544

Reclassifications from non-accretable discount
 
668

 
263

Accretion
 
(543
)
 
(403
)
Balance at period end
 
$
1,250

 
$
2,404

The age analysis of loans, segregated by class
The age analysis of loans, segregated by class, as of the dates set forth was as follows:
 
 
March 31, 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
 
$
6,699

 
$

 
$
6,699

 
$
53,443

 
$

 
$
930,983

 
$
991,125

Mortgage warehouse
 

 

 

 

 

 
185,849

 
185,849

Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner occupied commercial real estate
 
17,703

 
570

 
18,273

 

 

 
333,865

 
352,138

Commercial real estate
 
11,116

 
3,110

 
14,226

 
185

 

 
847,276

 
861,687

Construction, land & land development
 
2,495

 

 
2,495

 
3,415

 

 
116,364

 
122,274

Residential mortgage
 
4,310

 

 
4,310

 
3,089

 

 
148,856

 
156,255

Consumer and other
 
283

 

 
283

 
47

 

 
15,069

 
15,399

Total originated loans
 
$
42,606

 
$
3,680

 
$
46,286

 
$
60,179

 
$

 
$
2,578,262

 
$
2,684,727

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquired Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial & industrial
 
$
49

 
$
935

 
$
984

 
$
1,853

 
$
2,161

 
$
42,592

 
$
47,590

Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner occupied commercial real estate
 
173

 
233

 
406

 
1,779

 
3,751

 
77,292

 
83,228

Commercial real estate
 
2,317

 
475

 
2,792

 
112

 
3,611

 
200,630

 
207,145

Construction, land & land development
 

 

 

 
709

 

 
25,749

 
26,458

Residential mortgage
 
2,431

 
89

 
2,520

 
16

 
2,179

 
81,559

 
86,274

Consumer and other
 

 

 

 
215

 

 
699

 
914

Total acquired loans
 
$
4,970

 
$
1,732

 
$
6,702

 
$
4,684

 
$
11,702

 
$
428,521

 
$
451,609

Total loans held for investment
 
$
47,576

 
$
5,412

 
$
52,988

 
$
64,863

 
$
11,702

 
$
3,006,783

 
$
3,136,336

 
 
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

Information related to impaired, nonaccrual and restructured loans and accruing loans past due
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:
 
 
March 31, 2018
 
 
Originated
 
Acquired
 
Total
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
Nonaccrual loans
 
$
52,156

 
$
3,409

 
$
55,565

Accruing loans past due 90 days or more
 
3,680

 
1,732

 
5,412

Restructured loans - nonaccrual
 
8,023

 
1,275

 
9,298

Restructured loans - accruing
 
4,360

 
9,263

 
13,623

Total nonperforming loans
 
$
68,219

 
$
15,679

 
$
83,898

 
 
 
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

Schedule of financing receivables average recorded investment and interest income recognized
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
 
 
March 31, 2018
 
March 31, 2017
 
 
Average Recorded Investment
 
Interest Income Recognized
 
Average Recorded Investment
 
Interest Income Recognized
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
Originated Loans
 
 
 
 
 
 
 
 
Commercial & industrial
 
$
52,510

 
$
61

 
$
37,834

 
$
8

Mortgage warehouse
 

 

 

 

Owner occupied commercial real estate
 

 

 

 

Commercial real estate
 
186

 

 
5,512

 

Construction, land & land development
 
3,404

 

 

 

Residential mortgage
 
3,097

 

 
2,658

 
6

Consumer and other
 
54

 

 
210

 
1

Total originated loans
 
$
59,251

 
$
61

 
$
46,214

 
$
15

 
 
 
 
 
 
 
 
 
Acquired Loans
 
 
 
 
 
 
 
 
Commercial & industrial
 
$
10,924

 
$
123

 
$
29,324

 
$
139

Owner occupied commercial real estate
 
1,791

 

 
8,873

 

Commercial real estate
 
115

 
3

 
1,971

 

Construction, land & land development
 
711

 

 
1,096

 

Residential mortgage
 
307

 

 
1,436

 

Consumer and other
 
212

 

 
74

 

Total acquired loans
 
$
14,060

 
$
126

 
$
42,774

 
$
139

Total
 
$
73,311

 
$
187

 
$
88,988

 
$
154

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:
 
 
March 31, 2018
 
 
Recorded Investment
 
Unpaid Principal Balance
 
Related Allowance
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
Originated Loans
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
Commercial & industrial
 
$
19,229

 
$
19,408

 
$

Commercial real estate
 
185

 
185

 

Construction, land & land development
 
111

 
111

 

Residential mortgage
 
3,089

 
3,089

 

Consumer and other
 
3

 
3

 

Total with no related allowance recorded:
 
$
22,617

 
$
22,796

 
$

 
 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
            
Commercial & industrial
 
$
38,570

 
$
38,707

 
$
13,460

Construction, land & land development
 
3,305

 
3,305

 
402

Consumer and other
 
47

 
47

 
30

Total with an allowance recorded:
 
$
41,922

 
$
42,059

 
$
13,892

Total originated loans
 
$
64,539

 
$
64,855

 
$
13,892

 
 
 
 
 
 
 
Acquired Loans
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
Commercial & industrial
 
$
11,080

 
$
11,080

 
$

Owner occupied commercial real estate
 
1,068

 
1,078

 

Commercial real estate
 
112

 
112

 

Construction, land & land development
 
709

 
710

 

Residential mortgage
 
16

 
16

 

Consumer and other
 
207

 
202

 

Total with no related allowance recorded:
 
$
13,192

 
$
13,198

 
$

 
 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
            
Commercial & industrial
 
$
36

 
$
36

 
$
36

Owner occupied commercial real estate
 
710

 
725

 
513

Consumer and other
 
9

 
9

 
9

Total with an allowance recorded:
 
$
755

 
$
770

 
$
558

Total acquired loans
 
$
13,947

 
$
13,968

 
$
558

 
 
 
 
 
 
 
Total:
 
 
 
 
 
 
Commercial & industrial
 
$
68,915

 
$
69,231

 
$
13,496

Real estate
 
9,305

 
9,331

 
915

Consumer and other
 
266

 
261

 
39

Total
 
$
78,486

 
$
78,823

 
$
14,450


 
 
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

The credit risk profile of loans aggregated by class
The credit risk profile of loans aggregated by class and internally assigned risk grades as of the dates set forth were as follows:
 
 
March 31, 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
 
$
854,869

 
$
46,230

 
$
20,733

 
$
15,850

 
$
53,443

 
$

 
$

 
$
991,125

Mortgage Warehouse
 
185,849

 

 

 

 

 

 

 
185,849

Owner Occupied Commercial Real Estate
 
335,487

 
7,791

 
4,492

 
4,368

 

 

 

 
352,138

Commercial Real Estate
 
735,733

 
56,233

 
40,960

 
28,576

 
185

 

 

 
861,687

Construction & Land Development
 
107,957

 

 
1,357

 
9,545

 
3,415

 

 

 
122,274

Residential Mortgage
 
151,273

 
1,026

 

 
867

 
3,089

 

 

 
156,255

Other Consumer
 
15,348

 

 

 
4

 
47

 

 

 
15,399

Total originated loans
 
$
2,386,516

 
$
111,280

 
$
67,542

 
$
59,210

 
$
60,179

 
$

 
$

 
$
2,684,727

Acquired Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial & Industrial
 
$
22,725

 
$
6,371

 
$
7,960

 
$
6,520

 
$
1,853

 
$

 
$
2,161

 
$
47,590

Owner Occupied Commercial Real Estate
 
70,015

 
7,401

 

 
282

 
1,779

 

 
3,751

 
83,228

Commercial Real Estate
 
145,492

 
30,676

 
26,984

 
270

 
112

 

 
3,611

 
207,145

Construction & Land Development
 
13,107

 
12,087

 

 
555

 
709

 

 

 
26,458

Residential Mortgage
 
83,118

 
294

 
200

 
467

 
16

 

 
2,179

 
86,274

Other Consumer
 
699

 

 

 

 
215

 

 

 
914

Total acquired loans
 
$
335,156

 
$
56,829

 
$
35,144

 
$
8,094

 
$
4,684

 
$

 
$
11,702

 
$
451,609

Total loans
 
$
2,721,672

 
$
168,109

 
$
102,686

 
$
67,304

 
$
64,863

 
$

 
$
11,702

 
$
3,136,336

 
 
 
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
Troubled debt restructurings identified during the periods indicated were as follows:
 
 
Three Months Ended
 
 
March 31, 2018
 
March 31, 2017
 
 
Number of Contracts
 
Pre-Modification
Outstanding
Recorded
Investment
 
Recorded Investment
 
Number of
Contracts
 
Pre-Modification
Outstanding
Recorded
Investment
 
Recorded Investment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
Consumer and other
 
 

 

 
1
 
$
208

 
$
214

Total
 
 
$

 
$

 
1
 
$
208

 
$
214