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Allowance for Loan Losses
 12 Months Ended
Dec. 31, 2017
Loans and Leases Receivable Disclosure [Abstract]  
Impaired Loans and Allowance for Loan Losses
Note F - Allowance for Loan Losses
 
Activity in the allowance for loans losses for the three years ended December 31, 2017, 2016 and 2015 is summarized as follows:
 
 
 
Beginning
Balance
 
Provision
for Loan
Losses
 
Charge-
Offs
 
Recoveries
 
TDR
Allowance
Adjustments
 
Ending
Balance
 
 
 
(In thousands)
 
December 31 , 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
$
1,219
 
$
(471)
 
$
0
 
$
896
 
$
(2)
 
$
1,642
 
Commercial real estate
 
 
9,273
 
 
(264)
 
 
(407)
 
 
747
 
 
(64)
 
 
9,285
 
Residential real estate
 
 
7,483
 
 
125
 
 
(569)
 
 
336
 
 
(244)
 
 
7,131
 
Commercial and financial
 
 
3,636
 
 
5,304
 
 
(1,869)
 
 
226
 
 
0
 
 
7,297
 
Consumer
 
 
1,789
 
 
954
 
 
(1,257)
 
 
290
 
 
(9)
 
 
1,767
 
Total
 
$
23,400
 
$
5,648
 
$
(4,102)
 
$
2,495
 
$
(319)
 
$
27,122
 
December 31 , 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
$
1,151
 
$
(150)
 
$
0
 
$
226
 
$
(8)
 
$
1,219
 
Commercial real estate
 
 
6,756
 
 
2,599
 
 
(256)
 
 
306
 
 
(132)
 
 
9,273
 
Residential real estate
 
 
8,057
 
 
(1,069)
 
 
(205)
 
 
786
 
 
(86)
 
 
7,483
 
Commercial and financial
 
 
2,042
 
 
224
 
 
(439)
 
 
1,809
 
 
0
 
 
3,636
 
Consumer
 
 
1,122
 
 
807
 
 
(244)
 
 
109
 
 
(5)
 
 
1,789
 
Total
 
$
19,128
 
$
2,411
 
$
(1,144)
 
$
3,236
 
$
(231)
 
$
23,400
 
December 31 , 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
$
722
 
$
1,296
 
$
(1,271)
 
$
404
 
$
43
 
$
1,151
 
Commercial real estate
 
 
4,528
 
 
2,010
 
 
(263)
 
 
700
 
 
(69)
 
 
6,756
 
Residential real estate
 
 
9,784
 
 
(2,208)
 
 
(779)
 
 
1,260
 
 
(150)
 
 
8,057
 
Commercial and financial
 
 
1,179
 
 
1,058
 
 
(726)
 
 
531
 
 
(6)
 
 
2,042
 
Consumer
 
 
794
 
 
552
 
 
(341)
 
 
117
 
 
(36)
 
 
1,122
 
Total
 
$
17,007
 
$
2,708
 
$
(3,380)
 
$
3,012
 
$
(218)
 
$
19,128
 
  
As discussed in Note A, "Significant Accounting Policies," 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 December 31, 2017 and 2016 is shown in the following tables.
 
 
 
Individually Evaluated for
Impairment
 
Collectively Evaluated for
Impairment
 
Total
 
 
 
Recorded
Investment
 
Associated
Allowance
 
Recorded
Investment
 
Associated
Allowance
 
Recorded
Investment
 
Associated
Allowance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
$
474
 
$
23
 
$
341,530
 
$
1,619
 
$
342,004
 
$
1,642
 
Commercial real estate
 
 
8,255
 
 
195
 
 
1,621,960
 
 
9,090
 
 
1,630,215
 
 
9,285
 
Residential real estate
 
 
18,720
 
 
1,091
 
 
1,014,465
 
 
6,040
 
 
1,033,185
 
 
7,131
 
Commercial and financial
 
 
2,455
 
 
1,050
 
 
602,666
 
 
6,247
 
 
605,121
 
 
7,297
 
Consumer
 
 
387
 
 
43
 
 
189,049
 
 
1,724
 
 
189,436
 
 
1,767
 
Total
 
$
30,291
 
$
2,402
 
$
3,769,670
 
$
24,720
 
$
3,799,961
 
$
27,122
 
 
 
 
Individually Evaluated for
 
Collectively Evaluated for
 
 
 
 
 
 
 
 
 
Impairment
 
Impairment
 
Total
 
 
 
Recorded
Investment
 
Associated
Allowance
 
Recorded
Investment
 
Associated
Allowance
 
Recorded
Investment
 
Associated
Allowance
 
 
 
(In thousands)
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
$
277
 
$
0
 
$
159,839
 
$
1,219
 
$
160,116
 
$
1,219
 
Commercial real estate
 
 
10,204
 
 
395
 
 
1,324,276
 
 
8,878
 
 
1,334,480
 
 
9,273
 
Residential real estate
 
 
22,038
 
 
2,059
 
 
813,751
 
 
5,424
 
 
835,789
 
 
7,483
 
Commercial and financial
 
 
199
 
 
0
 
 
368,508
 
 
3,636
 
 
368,707
 
 
3,636
 
Consumer
 
 
0
 
 
0
 
 
154,452
 
 
1,789
 
 
154,452
 
 
1,789
 
Total
 
$
32,718
 
$
2,454
 
$
2,820,826
 
$
20,946
 
$
2,853,544
 
$
23,400
 
 
Loans collectively evaluated for impairment reported at December 31, 2017 included acquired loans that are not PCI loans. At December 31, 2017, the remaining fair value adjustments for loans acquired was $17.5 million, or 2.00% of the outstanding aggregate PUL balances. At December 31, 2016, the remaining fair value adjustments for loans acquired was $13.7 million, or 3.11% of the outstanding aggregate PUL balances.
 
These amounts, which represent the remaining fair value discount of each PUL, are accreted into interest income over the remaining lives of the related loans on a level yield basis. Recapture for loan losses of $0.4 million and net recoveries of $1.0 million were recorded for these loans during 2017. No provision for loan losses was recorded related to these loans during 2016. Provisioning for loan losses of $1.3 million and net charge-offs of $1.2 million were recorded for these loans during 2015.
 
The table below summarizes PCI loans that were individually evaluated for impairment based on expected cash flows at December 31, 2017 and 2016.
 
 
 
December 31, 2017
 
December 31, 2016
 
 
 
PCI Loans Individually
Evaluated for Impairment
 
PCI Loans Individually
Evaluated for Impairment
 
 
 
Recorded
Investment
 
Associated
Allowance
 
Recorded
Investment
 
Associated
Allowance
 
 
 
(In thousands)
 
Construction and land development
 
$
1,121
 
$
0
 
$
114
 
$
0
 
Commercial real estate
 
 
9,776
 
 
0
 
 
11,257
 
 
0
 
Residential real estate
 
 
5,626
 
 
0
 
 
684
 
 
0
 
Commercial and financial
 
 
894
 
 
0
 
 
941
 
 
0
 
Consumer
 
 
0
 
 
0
 
 
0
 
 
0
 
Total
 
$
17,417
 
$
0
 
$
12,996
 
$
0