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IMPAIRED LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 9 Months Ended
Sep. 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 nine months ending September 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 nine months ending September 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
 
 
3
 
 
1,881
 
 
1,787
 
 
0
 
 
94
 
Consumer
 
 
4
 
 
48
 
 
45
 
 
0
 
 
3
 
 
 
 
8
 
$
1,955
 
$
1,857
 
$
0
 
$
98
 
Impaired Financing Receivables
As of September 30, 2016 and December 31, 2015, the Company’s recorded investment in impaired loans and the related valuation allowance were as follows:
 
 
 
September 30, 2016
 
 
 
 
 
 
Unpaid
 
Related
 
 
 
Recorded
 
Principal
 
Valuation
 
(Dollars in thousands)
 
Investment
 
Balance
 
Allowance
 
Impaired Loans with No Related Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
$
211
 
$
297
 
$
0
 
Commercial real estate
 
 
1,421
 
 
2,889
 
 
0
 
Residential real estate
 
 
9,258
 
 
13,609
 
 
0
 
Commercial and financial
 
 
19
 
 
19
 
 
0
 
Consumer
 
 
136
 
 
229
 
 
0
 
Impaired Loans with an Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
585
 
 
595
 
 
42
 
Commercial real estate
 
 
5,966
 
 
5,966
 
 
346
 
Residential real estate
 
 
11,727
 
 
12,025
 
 
1,608
 
Commercial and financial
 
 
0
 
 
0
 
 
0
 
Consumer
 
 
392
 
 
392
 
 
49
 
Total:
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
796
 
 
892
 
 
42
 
Commercial real estate
 
 
7,387
 
 
8,855
 
 
346
 
Residential real estate
 
 
20,985
 
 
25,634
 
 
1,608
 
Commercial and financial
 
 
19
 
 
19
 
 
0
 
Consumer
 
 
528
 
 
621
 
 
49
 
 
 
$
29,715
 
$
36,021
 
$
2,045
 
 
 
 
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 September 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
 
 
 
September 30, 2016
 
September 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
 
$
208
 
$
3
 
$
1,216
 
$
2
 
Commercial real estate
 
 
1,437
 
 
31
 
 
3,138
 
 
7
 
Residential real estate
 
 
9,346
 
 
138
 
 
9,700
 
 
35
 
Commercial and financial
 
 
16
 
 
0
 
 
83
 
 
0
 
Consumer
 
 
157
 
 
3
 
 
152
 
 
0
 
Impaired Loans with an Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction & land development
 
 
609
 
 
7
 
 
1,070
 
 
23
 
Commercial real estate
 
 
6,565
 
 
64
 
 
6,638
 
 
78
 
Residential real estate
 
 
12,038
 
 
102
 
 
14,762
 
 
89
 
Commercial and financial
 
 
0
 
 
0
 
 
0
 
 
0
 
Consumer
 
 
383
 
 
4
 
 
490
 
 
7
 
Total:
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction & land development
 
 
817
 
 
10
 
 
2,286
 
 
25
 
Commercial real estate
 
 
8,002
 
 
95
 
 
9,776
 
 
85
 
Residential real estate
 
 
21,384
 
 
240
 
 
24,462
 
 
124
 
Commercial and financial
 
 
16
 
 
0
 
 
83
 
 
0
 
Consumer
 
 
540
 
 
7
 
 
642
 
 
7
 
 
 
$
30,759
 
$
352
 
$
37,249
 
$
241
 
 
For the nine months ended September 30, 2016 and 2015, the Company’s average recorded investments in impaired loans and related interest income were as follows:
 
 
 
Nine Months Ended
 
Nine Months Ended
 
 
 
September 30, 2016
 
September 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
 
$
188
 
$
11
 
$
1,632
 
$
7
 
Commercial real estate
 
 
1,854
 
 
97
 
 
3,012
 
 
13
 
Residential real estate
 
 
9,444
 
 
406
 
 
10,745
 
 
103
 
Commercial and financial
 
 
16
 
 
0
 
 
106
 
 
1
 
Consumer
 
 
193
 
 
10
 
 
126
 
 
0
 
Impaired Loans with an Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction & land development
 
 
671
 
 
20
 
 
912
 
 
39
 
Commercial real estate
 
 
6,835
 
 
193
 
 
7,312
 
 
223
 
Residential real estate
 
 
12,098
 
 
322
 
 
15,658
 
 
270
 
Commercial and financial
 
 
0
 
 
0
 
 
0
 
 
0
 
Consumer
 
 
363
 
 
14
 
 
507
 
 
17
 
Total:
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction & land development
 
 
859
 
 
31
 
 
2,544
 
 
46
 
Commercial real estate
 
 
8,689
 
 
290
 
 
10,324
 
 
236
 
Residential real estate
 
 
21,542
 
 
728
 
 
26,403
 
 
373
 
Commercial and financial
 
 
16
 
 
0
 
 
106
 
 
1
 
Consumer
 
 
556
 
 
24
 
 
633
 
 
17
 
 
 
$
31,662
 
$
1,073
 
$
40,010
 
$
673
Allowance for Credit Losses on Financing Receivables
Activity in the allowance for loan losses (excluding PCI loans) for the three-month period ended and nine-month period ended September 30, 2016 is summarized as follows:
 
 
 
Allowance for Loan Losses for the Three Months Ended September 30, 2016
 
 
 
 
 
 
Provision
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning
 
for Loan
 
Charge-
 
 
 
 
Net
 
Ending
 
(Dollars in thousands)
 
Balance
 
Losses
 
Offs
 
Recoveries
 
Recoveries
 
Balance
 
Construction & land development
 
$
1,160
 
$
48
 
$
0
 
$
25
 
$
25
 
$
1,233
 
Commercial real estate
 
 
7,192
 
 
1,450
 
 
(78)
 
 
169
 
 
91
 
 
8,733
 
Residential real estate
 
 
8,299
 
 
(662)
 
 
0
 
 
272
 
 
272
 
 
7,909
 
Commercial and financial
 
 
2,591
 
 
(550)
 
 
(283)
 
 
1,278
 
 
995
 
 
3,036
 
Consumer
 
 
1,483
 
 
264
 
 
(18)
 
 
44
 
 
26
 
 
1,773
 
 
 
$
20,725
 
$
550
 
$
(379)
 
$
1,788
 
$
1,409
 
$
22,684
 
 
 
 
Allowance for Loan Losses for the Nine Months Ended September 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
 
$
(132)
 
$
0
 
$
214
 
$
214
 
$
1,233
 
Commercial real estate
 
 
6,756
 
 
1,960
 
 
(254)
 
 
271
 
 
17
 
 
8,733
 
Residential real estate
 
 
8,057
 
 
(672)
 
 
(145)
 
 
669
 
 
524
 
 
7,909
 
Commercial and financial
 
 
2,042
 
 
(403)
 
 
(376)
 
 
1,773
 
 
1,397
 
 
3,036
 
Consumer
 
 
1,122
 
 
658
 
 
(98)
 
 
91
 
 
(7)
 
 
1,773
 
 
 
$
19,128
 
$
1,411
 
$
(873)
 
$
3,018
 
$
2,145
 
$
22,684
 
 
Activity in the allowance for loan losses (excluding PCI loans) for the three-month period and nine-month period ended September 30, 2015 is summarized as follows:
 
 
 
Allowance for Loan Losses for the Three Months Ended September 30, 2015
 
 
 
 
 
 
Provision
 
 
 
 
 
 
 
Net
 
 
 
 
 
 
Beginning
 
for Loan
 
Charge-
 
 
 
(Charge-Offs)
 
Ending
 
(Dollars in thousands)
 
Balance
 
Losses
 
Offs
 
Recoveries
 
Recoveries
 
Balance
 
Construction & land development
 
$
887
 
$
891
 
$
(859)
 
$
109
 
$
(750)
 
$
1,028
 
Commercial real estate
 
 
5,278
 
 
925
 
 
(128)
 
 
315
 
 
187
 
 
6,390
 
Residential real estate
 
 
9,686
 
 
(686)
 
 
(193)
 
 
359
 
 
166
 
 
9,166
 
Commercial and financial
 
 
945
 
 
193
 
 
(160)
 
 
107
 
 
(53)
 
 
1,085
 
Consumer
 
 
1,783
 
 
(173)
 
 
(22)
 
 
22
 
 
0
 
 
1,610
 
 
 
$
18,579
 
$
1,150
 
$
(1,362)
 
$
912
 
$
(450)
 
$
19,279
 
 
 
 
Allowance for Loan Losses for the Nine Months Ended September 30, 2015
 
 
 
 
 
 
Provision
 
 
 
 
 
 
 
Net
 
 
 
 
 
 
Beginning
 
for Loan
 
Charge-
 
 
 
 
(Charge-Offs)
 
Ending
 
(Dollars in thousands)
 
Balance
 
Losses
 
Offs
 
Recoveries
 
Recoveries
 
Balance
 
Construction & land development
 
$
722
 
$
910
 
$
(925)
 
$
321
 
$
(604)
 
$
1,028
 
Commercial real estate
 
 
4,528
 
 
1,690
 
 
(430)
 
 
602
 
 
172
 
 
6,390
 
Residential real estate
 
 
9,784
 
 
(1,235)
 
 
(515)
 
 
1,132
 
 
617
 
 
9,166
 
Commercial and financial
 
 
1,179
 
 
(245)
 
 
(284)
 
 
435
 
 
151
 
 
1,085
 
Consumer
 
 
794
 
 
1,020
 
 
(276)
 
 
72
 
 
(204)
 
 
1,610
 
 
 
$
17,007
 
$
2,140
 
$
(2,430)
 
$
2,562
 
$
132
 
$
19,279
 
Loan Portfolio And Related Allowance
The Company’s loan portfolio (excluding PCI loans) and related allowance at September 30, 2016 and December 31, 2015 is shown in the following tables:
 
 
 
At September 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
 
$
796
 
$
42
 
$
152,991
 
$
1,191
 
$
153,787
 
$
1,233
 
Commercial real estate
 
 
7,387
 
 
346
 
 
1,274,844
 
 
8,387
 
 
1,282,231
 
 
8,733
 
Residential real estate
 
 
20,985
 
 
1,608
 
 
811,743
 
 
6,301
 
 
832,728
 
 
7,909
 
Commercial and financial
 
 
19
 
 
0
 
 
341,505
 
 
3,036
 
 
341,524
 
 
3,036
 
Consumer
 
 
528
 
 
49
 
 
145,483
 
 
1,724
 
 
146,011
 
 
1,773
 
 
 
$
29,715
 
$
2,045
 
$
2,726,566
 
$
20,639
 
$
2,756,281
 
$
22,684
 
 
 
 
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 September 30, 2016 and December 31, 2015:
 
 
 
PCI Loans Individually Evaluated for Impairment
 
 
 
September 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
 
 
11,281
 
 
0
 
 
9,990
 
 
0
 
Residential real estate
 
 
685
 
 
0
 
 
922
 
 
0
 
Commercial and financial
 
 
977
 
 
0
 
 
1,083
 
 
0
 
Consumer
 
 
0
 
 
0
 
 
0
 
 
0
 
 
 
$
13,057
 
$
0
 
$
12,109
 
$
0