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IMPAIRED LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 6 Months Ended
Jun. 30, 2016
Financing Receivable, Allowance for Credit Losses [Line Items]  
Troubled Debt Restructurings on Financing Receivables
The following table presents loans that were modified within the six months ending June 30, 2016:
 
 
 
 
 
 
Pre-
 
Post-
 
 
 
 
 
 
 
 
 
 
 
 
Modification
 
Modification
 
 
 
 
 
 
 
 
 
Number
 
Outstanding
 
Outstanding
 
Specific
 
Valuation
 
 
 
of
 
Recorded
 
Recorded
 
Reserve
 
Allowance
 
(Dollars in thousands)
 
Contracts
 
Investment
 
Investment
 
Recorded
 
Recorded
 
Residential real estate
 
 
6
 
$
1,660
 
$
1,489
 
$
0
 
$
171
 
 
 
 
6
 
$
1,660
 
$
1,489
 
$
0
 
$
171
 
 
The following table presents loans that were modified within the six months ending June 30, 2015:
 
 
 
 
 
 
Pre-
 
Post-
 
 
 
 
 
 
 
 
 
 
 
 
Modification
 
Modification
 
 
 
 
 
 
 
 
 
Number
 
Outstanding
 
Outstanding
 
Specific
 
Valuation
 
 
 
of
 
Recorded
 
Recorded
 
Reserve
 
Allowance
 
(Dollars in thousands)
 
Contracts
 
Investment
 
Investment
 
Recorded
 
Recorded
 
Residential real estae
 
 
1
 
$
26
 
$
25
 
$
0
 
$
1
 
Commercial real estate
 
 
2
 
 
911
 
 
859
 
 
0
 
 
52
 
Consumer
 
 
4
 
 
48
 
 
45
 
 
0
 
 
3
 
 
 
 
7
 
$
985
 
$
929
 
$
0
 
$
56
 
Impaired Financing Receivables
As of June 30, 2016 and December 31, 2015, the Company’s recorded investment in impaired loans and the related valuation allowance were as follows:
 
 
 
June 30, 2016
 
 
 
 
 
Unpaid
 
Related
 
 
 
Recorded
 
Principal
 
Valuation
 
(Dollars in thousands)
 
Investment
 
Balance
 
Allowance
 
Impaired Loans with No Related Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
$
206
 
$
289
 
$
0
 
Commercial real estate
 
 
1,445
 
 
2,947
 
 
0
 
Residential real estate
 
 
9,390
 
 
13,882
 
 
0
 
Commercial and financial
 
 
15
 
 
15
 
 
0
 
Consumer
 
 
168
 
 
267
 
 
0
 
Impaired Loans with an Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
621
 
 
631
 
 
28
 
Commercial real estate
 
 
6,865
 
 
6,866
 
 
381
 
Residential real estate
 
 
12,192
 
 
12,546
 
 
1,806
 
Commercial and financial
 
 
0
 
 
0
 
 
0
 
Consumer
 
 
379
 
 
379
 
 
49
 
Total:
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
827
 
 
920
 
 
28
 
Commercial real estate
 
 
8,310
 
 
9,813
 
 
381
 
Residential real estate
 
 
21,582
 
 
26,428
 
 
1,806
 
Commercial and financial
 
 
15
 
 
15
 
 
0
 
Consumer
 
 
547
 
 
646
 
 
49
 
 
 
$
31,281
 
$
37,822
 
$
2,264
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
Unpaid
 
Related
 
 
 
Recorded
 
Principal
 
Valuation
 
(Dollars in thousands)
 
Investment
 
Balance
 
Allowance
 
Impaired Loans with No Related Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
$
107
 
$
255
 
$
0
 
Commercial real estate
 
 
2,363
 
 
3,911
 
 
0
 
Residential real estate
 
 
9,256
 
 
13,707
 
 
0
 
Commercial and financial
 
 
17
 
 
17
 
 
0
 
Consumer
 
 
264
 
 
349
 
 
0
 
Impaired Loans with an Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
835
 
 
870
 
 
84
 
Commercial real estate
 
 
7,087
 
 
7,087
 
 
429
 
Residential real estate
 
 
12,447
 
 
12,803
 
 
1,964
 
Commercial and financial
 
 
0
 
 
0
 
 
0
 
Consumer
 
 
351
 
 
351
 
 
40
 
Total:
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
942
 
 
1,125
 
 
84
 
Commercial real estate
 
 
9,450
 
 
10,998
 
 
429
 
Residential real estate
 
 
21,703
 
 
26,510
 
 
1,964
 
Commercial and financial
 
 
17
 
 
17
 
 
0
 
Consumer
 
 
615
 
 
700
 
 
40
 
 
 
$
32,727
 
$
39,350
 
$
2,517
 
 
For the three months ended June 30, 2016 and 2015, the Company’s average recorded investments in impaired loans and related interest income were as follows:
 
 
 
Three Months Ended
 
Three Months Ended
 
 
 
June 30, 2016
 
June 30, 2015
 
 
 
Average
 
Interest
 
Average
 
Interest
 
 
 
Recorded
 
Income
 
Recorded
 
Income
 
(Dollars in thousands)
 
Investment
 
Recognized
 
Investment
 
Recognized
 
Impaired Loans with No Related Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction & land development
 
$
214
 
$
0
 
$
1,838
 
$
14
 
Commercial real estate
 
 
1,860
 
 
2
 
 
2,942
 
 
23
 
Residential real estate
 
 
9,587
 
 
37
 
 
10,877
 
 
30
 
Commercial and financial
 
 
16
 
 
0
 
 
116
 
 
1
 
Consumer
 
 
183
 
 
1
 
 
141
 
 
0
 
Impaired Loans with an Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction & land development
 
 
634
 
 
6
 
 
816
 
 
11
 
Commercial real estate
 
 
6,906
 
 
73
 
 
7,188
 
 
51
 
Residential real estate
 
 
11,993
 
 
100
 
 
15,682
 
 
99
 
Commercial and financial
 
 
0
 
 
0
 
 
0
 
 
0
 
Consumer
 
 
356
 
 
5
 
 
503
 
 
5
 
Total:
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction & land development
 
 
848
 
 
6
 
 
2,654
 
 
25
 
Commercial real estate
 
 
8,766
 
 
75
 
 
10,130
 
 
74
 
Residential real estate
 
 
21,580
 
 
137
 
 
26,559
 
 
129
 
Commercial and financial
 
 
16
 
 
0
 
 
116
 
 
1
 
Consumer
 
 
539
 
 
6
 
 
644
 
 
5
 
 
 
$
31,749
 
$
224
 
$
40,103
 
$
234
 
 
For the six months ended June 30, 2016 and 2015, the Company’s average recorded investments in impaired loans and related interest income were as follows:
 
 
 
Six Months Ended
 
Six Months Ended
 
 
 
June 30, 2016
 
June 30, 2015
 
 
 
Average
 
Interest
 
Average
 
Interest
 
 
 
Recorded
 
Income
 
Recorded
 
Income
 
(Dollars in thousands)
 
Investment
 
Recognized
 
Investment
 
Recognized
 
Impaired Loans with No Related Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction & land development
 
$
179
 
$
0
 
$
1,839
 
$
32
 
Commercial real estate
 
 
2,063
 
 
5
 
 
2,950
 
 
27
 
Residential real estate
 
 
9,493
 
 
71
 
 
11,268
 
 
65
 
Commercial and financial
 
 
16
 
 
0
 
 
118
 
 
3
 
Consumer
 
 
212
 
 
1
 
 
114
 
 
0
 
Impaired Loans with an Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction & land development
 
 
702
 
 
13
 
 
832
 
 
16
 
Commercial real estate
 
 
6,970
 
 
147
 
 
7,649
 
 
125
 
Residential real estate
 
 
12,128
 
 
185
 
 
16,106
 
 
198
 
Commercial and financial
 
 
0
 
 
0
 
 
0
 
 
0
 
Consumer
 
 
353
 
 
9
 
 
516
 
 
11
 
Total:
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction & land development
 
 
881
 
 
13
 
 
2,671
 
 
48
 
Commercial real estate
 
 
9,033
 
 
152
 
 
10,599
 
 
152
 
Residential real estate
 
 
21,621
 
 
256
 
 
27,374
 
 
263
 
Commercial and financial
 
 
16
 
 
0
 
 
118
 
 
3
 
Consumer
 
 
565
 
 
10
 
 
630
 
 
11
 
 
 
$
32,116
 
$
431
 
$
41,392
 
$
477
 
Allowance for Credit Losses on Financing Receivables
Activity in the allowance for loan losses (excluding PCI loans) for the three-month period ended and six-month period ended June 30, 2016 is summarized as follows:
 
 
 
Allowance for Loan Losses for the Three Months Ended June 30, 2016
 
 
 
 
 
 
Provision
 
 
 
 
 
 
Net
 
 
 
 
 
 
Beginning
 
for Loan
 
Charge-
 
 
 
 
(Charge-Offs)
 
Ending
 
(Dollars in thousands)
 
Balance
 
Losses
 
Offs
 
Recoveries
 
Recoveries
 
Balance
 
Construction & land development
 
$
1,285
 
$
(239)
 
$
0
 
$
114
 
$
114
 
$
1,160
 
Commercial real estate
 
 
6,677
 
 
495
 
 
(3)
 
 
23
 
 
20
 
 
7,192
 
Residential real estate
 
 
8,512
 
 
(420)
 
 
(28)
 
 
235
 
 
207
 
 
8,299
 
Commercial and financial
 
 
1,991
 
 
566
 
 
(38)
 
 
72
 
 
34
 
 
2,591
 
Consumer
 
 
1,259
 
 
260
 
 
(53)
 
 
17
 
 
(36)
 
 
1,483
 
 
 
$
19,724
 
$
662
 
$
(122)
 
$
461
 
$
339
 
$
20,725
 
 
 
 
Allowance for Loan Losses for the Six Months Ended June 30, 2016
 
 
 
 
 
 
Provision
 
 
 
 
 
 
 
Net
 
 
 
 
 
Beginning
 
for Loan
 
Charge-
 
 
 
(Charge-Offs)
 
Ending
 
(Dollars in thousands)
 
Balance
 
Losses
 
Offs
 
Recoveries
 
Recoveries
 
Balance
 
Construction & land development
 
$
1,151
 
$
(180)
 
$
0
 
$
189
 
$
189
 
$
1,160
 
Commercial real estate
 
 
6,756
 
 
510
 
 
(176)
 
 
102
 
 
(74)
 
 
7,192
 
Residential real estate
 
 
8,057
 
 
(10)
 
 
(145)
 
 
397
 
 
252
 
 
8,299
 
Commercial and financial
 
 
2,042
 
 
147
 
 
(93)
 
 
495
 
 
402
 
 
2,591
 
Consumer
 
 
1,122
 
 
394
 
 
(80)
 
 
47
 
 
(33)
 
 
1,483
 
 
 
$
19,128
 
$
861
 
$
(494)
 
$
1,230
 
$
736
 
$
20,725
 
 
Activity in the allowance for loan losses (excluding PCI loans) for the three-month period and six-month period ended June 30, 2015 is summarized as follows:
 
 
 
Allowance for Loan Losses for the Three Months Ended June 30, 2015
 
 
 
 
 
 
Provision
 
 
 
 
 
 
 
Net
 
 
 
 
 
 
Beginning
 
for Loan
 
Charge-
 
 
 
(Charge-Offs)
 
Ending
 
(Dollars in thousands)
 
Balance
 
Losses
 
Offs
 
Recoveries
 
Recoveries
 
Balance
 
Construction & land development
 
$
842
 
$
(101)
 
$
(19)
 
$
165
 
$
146
 
$
887
 
Commercial real estate
 
 
4,827
 
 
535
 
 
(146)
 
 
62
 
 
(84)
 
 
5,278
 
Residential real estate
 
 
9,666
 
 
(182)
 
 
(155)
 
 
358
 
 
203
 
 
9,687
 
Commercial and financial
 
 
1,374
 
 
(411)
 
 
(255)
 
 
237
 
 
(18)
 
 
945
 
Consumer
 
 
919
 
 
895
 
 
(60)
 
 
28
 
 
(32)
 
 
1,782
 
 
 
$
17,628
 
$
736
 
$
(635)
 
$
850
 
$
215
 
$
18,579
 
 
 
 
Allowance for Loan Losses for the Six Months Ended June 30, 2015
 
 
 
 
 
 
Provision
 
 
 
 
 
 
Net
 
 
 
 
 
 
Beginning
 
for Loan
 
Charge-
 
 
 
 
Charge-
 
Ending
 
(Dollars in thousands)
 
Balance
 
Losses
 
Offs
 
Recoveries
 
Offs
 
Balance
 
Construction & land development
 
$
722
 
$
19
 
$
(66)
 
$
212
 
$
146
 
$
887
 
Commercial real estate
 
 
4,528
 
 
765
 
 
(302)
 
 
287
 
 
(15)
 
 
5,278
 
Residential real estate
 
 
9,784
 
 
(549)
 
 
(322)
 
 
773
 
 
451
 
 
9,686
 
Commercial and financial
 
 
1,179
 
 
(288)
 
 
(274)
 
 
328
 
 
54
 
 
945
 
Consumer
 
 
794
 
 
1,193
 
 
(254)
 
 
50
 
 
(204)
 
 
1,783
 
 
 
$
17,007
 
$
1,140
 
$
(1,218)
 
$
1,650
 
$
432
 
$
18,579
 
Loan Portfolio And Related Allowance
The Company’s loan portfolio (excluding PCI loans) and related allowance at June 30, 2016 and December 31, 2015 is shown in the following tables:
 
 
 
At June 30 2016
 
 
 
Individually Evaluated for
 
Collectively Evaluated for
 
 
 
 
 
 
 
 
 
Impairment
 
Impairment
 
Total
 
 
 
Carrying
 
Associated
 
Carrying
 
Associated
 
Carrying
 
Associated
 
(Dollars in thousands)
 
Value
 
Allowance
 
Value
 
Allowance
 
Value
 
Allowance
 
Construction & land development
 
$
827
 
$
28
 
$
141,446
 
$
1,132
 
$
142,273
 
$
1,160
 
Commercial real estate
 
 
8,310
 
 
381
 
 
1,219,362
 
 
6,811
 
 
1,227,672
 
 
7,192
 
Residential real estate
 
 
21,582
 
 
1,806
 
 
772,051
 
 
6,493
 
 
793,633
 
 
8,299
 
Commercial and financial
 
 
15
 
 
0
 
 
322,437
 
 
2,591
 
 
322,452
 
 
2,591
 
Consumer
 
 
547
 
 
49
 
 
115,823
 
 
1,434
 
 
116,370
 
 
1,483
 
 
 
$
31,281
 
$
2,264
 
$
2,571,119
 
$
18,461
 
$
2,602,400
 
$
20,725
 
 
 
 
At December 31, 2015
 
 
 
Individually Evaluated for
 
Collectively Evaluated for
 
 
 
 
 
Impairment
 
Impairment
 
Total
 
 
 
Carrying
 
Associated
 
Carrying
 
Associated
 
Carrying
 
Associated
 
(Dollars in thousands)
 
Value
 
Allowance
 
Value
 
Allowance
 
Value
 
Allowance
 
Construction & land development
 
$
942
 
$
84
 
$
107,731
 
$
1,067
 
$
108,673
 
$
1,151
 
Commercial real estate
 
 
9,450
 
 
429
 
 
989,938
 
 
6,327
 
 
999,388
 
 
6,756
 
Residential real estate
 
 
21,703
 
 
1,964
 
 
701,160
 
 
6,093
 
 
722,863
 
 
8,057
 
Commercial and financial
 
 
17
 
 
0
 
 
227,417
 
 
2,042
 
 
227,434
 
 
2,042
 
Consumer
 
 
615
 
 
40
 
 
85,248
 
 
1,082
 
 
85,863
 
 
1,122
 
 
 
$
32,727
 
$
2,517
 
$
2,111,494
 
$
16,611
 
$
2,144,221
 
$
19,128
 
PCI Loans [Member]  
Financing Receivable, Allowance for Credit Losses [Line Items]  
Loan Portfolio And Related Allowance
The table below summarizes PCI loans that were individually evaluated for impairment based on expected cash flows at June 30, 2016 and December 31, 2015:
 
 
 
PCI Loans Individually Evaluated for Impairment
 
 
 
June 30, 2016
 
December 31, 2015
 
 
 
Carrying
 
Associated
 
Carrying
 
Associated
 
(Dollars in thousands)
 
Value
 
Allowance
 
Value
 
Allowance
 
Construction & land development
 
$
114
 
$
0
 
$
114
 
$
0
 
Commercial real estate
 
 
11,836
 
 
0
 
 
9,990
 
 
0
 
Residential real estate
 
 
688
 
 
0
 
 
922
 
 
0
 
Commercial and financial
 
 
1,014
 
 
0
 
 
1,083
 
 
0
 
Consumer
 
 
0
 
 
0
 
 
0
 
 
0
 
 
 
$
13,652
 
$
0
 
$
12,109
 
$
0