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IMPAIRED LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 3 Months Ended
Mar. 31, 2017
Financing Receivable, Allowance for Credit Losses [Line Items]  
Troubled Debt Restructurings on Financing Receivables
The following table presents loans that were modified within the three months ending March 31, 2017:
 
 
 
 
 
 
Pre-
 
 
Post-
 
 
 
 
 
 
 
 
 
 
 
 
Modification
 
 
Modification
 
 
 
 
 
 
 
 
 
Number
 
 
Outstanding
 
 
Outstanding
 
 
Specific
 
 
Valuation
 
 
 
of
 
 
Recorded
 
 
Recorded
 
 
Reserve
 
 
Allowance
 
(Dollars in thousands)
 
Contracts
 
 
Investment
 
 
Investment
 
 
Recorded
 
 
Recorded
 
Construction and land development
 
 
1
 
 
$
52
 
 
$
46
 
 
$
0
 
 
$
6
 
 
 
 
1
 
 
$
52
 
 
$
46
 
 
$
0
 
 
$
6
 
 
The following table presents loans that were modified within the three months ending March 31, 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
 
 
2
 
 
$
491
 
 
$
470
 
 
$
0
 
 
$
21
 
 
 
 
2
 
 
$
491
 
 
$
470
 
 
$
0
 
 
$
21
 
Impaired Financing Receivables
As of March 31, 2017 and December 31, 2016, the Company’s recorded investment in impaired loans (excluding PCI loans) and the related valuation allowance were as follows:
 
 
 
March 31, 2017
 
 
 
 
 
 
Unpaid
 
 
Related
 
 
 
Recorded
 
 
Principal
 
 
Valuation
 
(Dollars in thousands)
 
Investment
 
 
Balance
 
 
Allowance
 
Impaired Loans with No Related Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
$
519
 
 
$
865
 
 
$
0
 
Commercial real estate
 
 
2,386
 
 
 
3,722
 
 
 
0
 
Residential real estate
 
 
9,697
 
 
 
14,074
 
 
 
0
 
Commercial and financial
 
 
56
 
 
 
65
 
 
 
0
 
Consumer
 
 
168
 
 
 
242
 
 
 
0
 
Impaired Loans with an Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
241
 
 
 
252
 
 
 
21
 
Commercial real estate
 
 
6,135
 
 
 
6,152
 
 
 
275
 
Residential real estate
 
 
11,580
 
 
 
11,822
 
 
 
1,427
 
Commercial and financial
 
 
353
 
 
 
378
 
 
 
25
 
Consumer
 
 
289
 
 
 
289
 
 
 
34
 
Total:
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
760
 
 
 
1,117
 
 
 
21
 
Commercial real estate
 
 
8,521
 
 
 
9,874
 
 
 
275
 
Residential real estate
 
 
21,277
 
 
 
25,896
 
 
 
1,427
 
Commercial and financial
 
 
409
 
 
 
443
 
 
 
25
 
Consumer
 
 
457
 
 
 
531
 
 
 
34
 
 
 
$
31,424
 
 
$
37,861
 
 
$
1,782
 
 
 
 
December 31, 2016
 
 
 
 
 
 
Unpaid
 
 
Related
 
 
 
Recorded
 
 
Principal
 
 
Valuation
 
(Dollars in thousands)
 
Investment
 
 
Balance
 
 
Allowance
 
Impaired Loans with No Related Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
$
226
 
 
$
321
 
 
$
0
 
Commercial real estate
 
 
3,267
 
 
 
4,813
 
 
 
0
 
Residential real estate
 
 
9,706
 
 
 
14,136
 
 
 
0
 
Commercial and financial
 
 
199
 
 
 
206
 
 
 
0
 
Consumer
 
 
0
 
 
 
0
 
 
 
0
 
Impaired Loans with an Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
51
 
 
 
51
 
 
 
0
 
Commercial real estate
 
 
6,937
 
 
 
6,949
 
 
 
395
 
Residential real estate
 
 
12,332
 
 
 
12,681
 
 
 
2,059
 
Commercial and financial
 
 
0
 
 
 
0
 
 
 
0
 
Consumer
 
 
0
 
 
 
0
 
 
 
0
 
Total:
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
277
 
 
 
372
 
 
 
0
 
Commercial real estate
 
 
10,204
 
 
 
11,762
 
 
 
395
 
Residential real estate
 
 
22,038
 
 
 
26,817
 
 
 
2,059
 
Commercial and financial
 
 
199
 
 
 
206
 
 
 
0
 
Consumer
 
 
0
 
 
 
0
 
 
 
0
 
 
 
$
32,718
 
 
$
39,157
 
 
$
2,454
 
 
For the three months ended March 31, 2017 and 2016, the Company’s average recorded investments in impaired loans (excluding PCI loans) and related interest income were as follows:
 
 
 
Three Months Ended
 
 
Three Months Ended
 
 
 
March 31, 2017
 
 
March 31, 2016
 
 
 
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
 
$
303
 
 
$
11
 
 
$
143
 
 
$
0
 
Commercial real estate
 
 
2,049
 
 
 
39
 
 
 
2,265
 
 
 
3
 
Residential real estate
 
 
9,186
 
 
 
138
 
 
 
9,399
 
 
 
34
 
Commercial and financial
 
 
19
 
 
 
1
 
 
 
17
 
 
 
0
 
Consumer
 
 
56
 
 
 
4
 
 
 
240
 
 
 
0
 
Impaired Loans with an Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction & land development
 
 
114
 
 
 
3
 
 
 
770
 
 
 
7
 
Commercial real estate
 
 
6,670
 
 
 
69
 
 
 
7,033
 
 
 
74
 
Residential real estate
 
 
11,759
 
 
 
113
 
 
 
12,263
 
 
 
85
 
Commercial and financial
 
 
118
 
 
 
4
 
 
 
0
 
 
 
0
 
Consumer
 
 
96
 
 
 
3
 
 
 
349
 
 
 
4
 
Total:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction & land development
 
 
417
 
 
 
14
 
 
 
913
 
 
 
7
 
Commercial real estate
 
 
8,719
 
 
 
108
 
 
 
9,298
 
 
 
77
 
Residential real estate
 
 
20,945
 
 
 
251
 
 
 
21,662
 
 
 
119
 
Commercial and financial
 
 
137
 
 
 
5
 
 
 
17
 
 
 
4
 
Consumer
 
 
152
 
 
 
7
 
 
 
589
 
 
 
0
 
 
 
$
30,370
 
 
$
385
 
 
$
32,479
 
 
$
207
 
Allowance for Credit Losses on Financing Receivables
Activity in the allowance for loan losses (excluding PCI loans) for the three-month period ended March 31, 2017 is summarized as follows:
 
 
 
Allowance for Loan Losses for the Three Months Ended March 31, 2017
 
 
 
 
 
 
Provision
 
 
 
 
 
 
 
 
Net
 
 
 
 
 
 
Beginning
 
 
for Loan
 
 
Charge-
 
 
 
 
 
(Charge-Offs)
 
 
Ending
 
(Dollars in thousands)
 
Balance
 
 
Losses
 
 
Offs
 
 
Recoveries
 
 
Recoveries
 
 
Balance
 
Construction & land development
 
$
1,219
 
 
$
64
 
 
$
0
 
 
$
69
 
 
$
69
 
 
$
1,352
 
Commercial real estate
 
 
9,273
 
 
 
481
 
 
 
0
 
 
 
107
 
 
 
107
 
 
 
9,861
 
Residential real estate
 
 
7,483
 
 
 
(425)
 
 
 
(122)
 
 
 
128
 
 
 
6
 
 
 
7,064
 
Commercial and financial
 
 
3,636
 
 
 
1,122
 
 
 
(170)
 
 
 
47
 
 
 
(123)
 
 
 
4,635
 
Consumer
 
 
1,789
 
 
 
62
 
 
 
(259)
 
 
 
58
 
 
 
(201)
 
 
 
1,650
 
 
 
$
23,400
 
 
$
1,304
 
 
$
(551)
 
 
$
409
 
 
$
(142)
 
 
$
24,562
 
 
Activity in the allowance for loan losses (excluding PCI loans) for the three-month period ended March 31, 2016 is summarized as follows:
 
 
 
Allowance for Loan Losses for the Three Months Ended March 31, 2016
 
 
 
 
 
 
Provision
 
 
 
 
 
 
 
 
Net
 
 
 
 
 
 
Beginning
 
 
for Loan
 
 
Charge-
 
 
 
 
 
(Charge-Offs)
 
 
Ending
 
(Dollars in thousands)
 
Balance
 
 
Losses
 
 
Offs
 
 
Recoveries
 
 
Recoveries
 
 
Balance
 
Construction & land development
 
$
1,151
 
 
$
59
 
 
$
0
 
 
$
75
 
 
$
75
 
 
$
1,285
 
Commercial real estate
 
 
6,756
 
 
 
15
 
 
 
(173)
 
 
 
79
 
 
 
(94)
 
 
 
6,677
 
Residential real estate
 
 
8,057
 
 
 
410
 
 
 
(117)
 
 
 
162
 
 
 
45
 
 
 
8,512
 
Commercial and financial
 
 
2,042
 
 
 
(419)
 
 
 
(55)
 
 
 
423
 
 
 
368
 
 
 
1,991
 
Consumer
 
 
1,122
 
 
 
134
 
 
 
(27)
 
 
 
30
 
 
 
3
 
 
 
1,259
 
 
 
$
19,128
 
 
$
199
 
 
$
(372)
 
 
$
769
 
 
$
397
 
 
$
19,724
 
Loan Portfolio And Related Allowance
The allowance for loan losses is composed of specific allowances for certain impaired loans and general allowances grouped into loan pools based on similar characteristics. The Company’s loan portfolio (excluding PCI loans) and related allowance at March 31, 2017 and December 31, 2016 is shown in the following tables:
 
 
 
At March 31 2017
 
 
 
Individually Evaluated for
 
Collectively Evaluated for
 
 
 
 
 
 
 
Impairment
 
Impairment
 
Total
 
 
 
Recorded
 
Associated
 
Recorded
 
Associated
 
Recorded
 
Associated
 
(Dollars in thousands)
 
Investment
 
Allowance
 
Investment
 
Allowance
 
Investment
 
Allowance
 
Construction & land development
 
$
760
 
$
21
 
$
174,117
 
$
1,331
 
$
174,877
 
$
1,352
 
Commercial real estate
 
 
8,521
 
 
275
 
 
1,334,340
 
 
9,586
 
 
1,342,861
 
 
9,861
 
Residential real estate
 
 
21,277
 
 
1,427
 
 
871,709
 
 
5,637
 
 
892,986
 
 
7,064
 
Commercial and financial
 
 
409
 
 
25
 
 
383,880
 
 
4,610
 
 
384,289
 
 
4,635
 
Consumer
 
 
457
 
 
34
 
 
165,307
 
 
1,616
 
 
165,764
 
 
1,650
 
 
 
$
31,424
 
$
1,782
 
$
2,929,353
 
$
22,780
 
$
2,960,777
 
$
24,562
 
 
 
 
At December 31, 2016
 
 
 
Individually Evaluated for
 
Collectively Evaluated for
 
 
 
 
 
 
 
 
 
Impairment
 
Impairment
 
Total
 
 
 
Recorded
 
Associated
 
Recorded
 
Associated
 
Recorded
 
Associated
 
(Dollars in thousands)
 
Investment
 
Allowance
 
Investment
 
Allowance
 
Investment
 
Allowance
 
Construction & land development
 
$
277
 
$
0
 
$
159,839
 
$
1,219
 
$
160,116
 
$
1,219
 
Commercial real estate
 
 
10,204
 
 
395
 
 
1,335,832
 
 
8,878
 
 
1,346,036
 
 
9,273
 
Residential real estate
 
 
22,038
 
 
2,059
 
 
814,250
 
 
5,424
 
 
836,288
 
 
7,483
 
Commercial and financial
 
 
199
 
 
0
 
 
369,449
 
 
3,636
 
 
369,648
 
 
3,636
 
Consumer
 
 
0
 
 
0
 
 
154,452
 
 
1,789
 
 
154,452
 
 
1,789
 
 
 
$
32,718
 
$
2,454
 
$
2,833,822
 
$
20,946
 
$
2,866,540
 
$
23,400
 
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 March 31, 2017 and December 31, 2016:
 
 
 
PCI Loans Individually Evaluated for Impairment
 
 
 
March 31, 2017
 
December 31, 2016
 
 
 
Recorded
 
Associated
 
Recorded
 
Associated
 
(Dollars in thousands)
 
Investment
 
Allowance
 
Investment
 
Allowance
 
Construction & land development
 
$
114
 
$
0
 
$
114
 
$
0
 
Commercial real estate
 
 
11,279
 
 
0
 
 
11,257
 
 
0
 
Residential real estate
 
 
689
 
 
0
 
 
684
 
 
0
 
Commercial and financial
 
 
900
 
 
0
 
 
941
 
 
0
 
Consumer
 
 
0
 
 
0
 
 
0
 
 
0
 
 
 
$
12,982
 
$
0
 
$
12,996
 
$
0