Loans (Tables)

6 Months Ended

Jun. 30, 2016

Because of the difference in accounting for acquired loans, the tables below further segregate the Company’s non-covered loans between legacy loans and acquired loans.



	June 30, 2016
	Non-covered Loans				Covered Loans Acquired⁽¹⁾
(in thousands)	Legacy		Acquired		Covered Loans Acquired⁽¹⁾		Total
Commercial	$	601,783	$	183,233	$	12,270	$	797,286
SBA	141,658		2,078		347		144,083
Total commercial loans	743,441		185,311		12,617		941,369
Construction	199,347		16,905		1,316		217,568
Indirect automobile	1,512,406		—		—		1,512,406
Installment	41,161		5,125		246		46,532
Total consumer loans	1,553,567		5,125		246		1,558,938
Residential mortgage	293,503		43,029		364		336,896
Home equity lines of credit	110,137		20,772		5,027		135,936
Total mortgage loans	403,640		63,801		5,391		472,832
Total loans	$	2,899,995	$	271,142	$	19,570	$	3,190,707



	December 31, 2015
	Non-covered Loans				Covered Loans Acquired⁽¹⁾
(in thousands)	Legacy		Acquired		Covered Loans Acquired⁽¹⁾		Total
Commercial	$	569,440	$	119,595	$	14,256	$	703,291
SBA	131,244		4,383		366		135,993
Total commercial loans	700,684		123,978		14,622		839,284
Construction	157,476		17,393		2,164		177,033
Indirect automobile	1,449,481		—		—		1,449,481
Installment	12,031		1,720		304		14,055
Total consumer loans	1,461,512		1,720		304		1,463,536
Residential mortgage	284,313		17,683		382		302,378
Home equity lines of credit	93,093		16,456		5,168		114,717
Total mortgage loans	377,406		34,139		5,550		417,095
Total loans	$	2,697,078	$	177,230	$	22,640	$	2,896,948

⁽¹⁾Included in covered loans at June 30, 2016 and December 31, 2015 is $13.9 million and $16.7 million, respectively, of assets whose reimbursable loss periods will end in 2017

Nonaccrual loans, segregated by class of loans

Loans in nonaccrual status are presented by class of loans in the following table. Purchased credit impaired loans are considered to be performing due to the application of the accretion method and are excluded from the table.



(in thousands)	June 30, 2016		December 31, 2015
Commercial	$	8,623	$	9,228
SBA	6,048		6,599
Total commercial loans	14,671		15,827
Construction	6,040		5,940
Indirect automobile	1,175		1,116
Installment	211		602
Total consumer loans	1,386		1,718
Residential mortgage	8,479		2,514
Home equity lines of credit	2,859		1,129
Total mortgage loans	11,338		3,643
Total nonaccrual loans	$	33,435	$	27,128

Loans delinquent and troubled debt restructured loans accruing interest

Accruing loans delinquent 30-89 days, 90 days or more, and troubled debt restructured loans (“TDRs”) accruing interest, presented by class of loans at June 30, 2016 and December 31, 2015, were as follows:



	June 30, 2016						December 31, 2015
(in thousands)	Accruing Delinquent 30-89 Days		Accruing Delinquent 90 Days or More		TDRs Accruing		Accruing Delinquent 30-89 Days		Accruing Delinquent 90 Days or More		TDRs Accruing
Commercial	$	2,162	$	—	$	6,600	$	428	$	—	$	9,105
SBA	1,011		—		3,844		3,352		—		3,912
Construction	—		—		—		58		—		160
Indirect automobile	1,588		—		1,552		1,829		—		1,567
Installment	94		—		55		185		—		59
Residential mortgage	1,228		—		758		1,558		1,284		618
Home equity lines of credit	621		—		—		682		—		—
Total	$	6,704	$	—	$	12,809	$	8,092	$	1,284	$	15,421

Schedule of Trouble Debt Restructurings

Modified purchased credit impaired loans are not removed from their accounting pool and accounted for as TDRs, even if those loans would otherwise be deemed TDRs.



	Three Months Ended June 30, 2016				Three Months Ended June 30, 2015
(in thousands)	Interest Rate		Term		Interest Rate		Term
Commercial	$	—	$	—	$	—	$	—
SBA	—		—		—		—
Construction	—		—		—		—
Indirect automobile	—		147		—		218
Installment	—		—		—		—
Residential mortgage	—		148		—		—
Home equity lines of credit	—		—		—		—
Total	$	—	$	295	$	—	$	218



	Six Months Ended June 30, 2016				Six Months Ended June 30, 2015
(in thousands)	Interest Rate		Term		Interest Rate		Term
Commercial	$	—	$	—	$	—	$	1,006
SBA	—		—		—		—
Construction	—		—		—		—
Indirect automobile	—		478		—		500
Installment	—		—		—		—
Residential mortgage	—		148		—		—
Home equity lines of credit	—		—		—		—
Total loans	$	—	$	626	$	—	$	1,506

Schedule of Financing Receivables Pledged as Collateral

Presented in the following table is the unpaid principal balance of loans held for investment that were pledged to the Federal Home Loan Bank of Atlanta (“FHLB of Atlanta”) as collateral for borrowings at June 30, 2016 and December 31, 2015.



	June 30, 2016		December 31, 2015
(in thousands)
Commercial real estate	$	232,262	$	231,227
Home equity lines of credit	80,847		73,755
Residential mortgage	197,608		181,180
Total	$	510,717	$	486,162

Impaired loans

The following tables present by class the unpaid principal balance, recorded investment and related allowance for impaired loans at June 30, 2016 and December 31, 2015.



	June 30, 2016						December 31, 2015
(in thousands)	Unpaid Principal Balance		Recorded Investment⁽¹⁾		Related Allowance		Unpaid Principal Balance		Recorded Investment⁽¹⁾		Related Allowance
Impaired Loans with Allowance
Commercial	$	12,217	$	9,210	$	852	$	6,631	$	4,731	$	1,280
SBA	6,661		6,335		210		3,236		2,833		327
Construction	—		—		—		160		160		78
Indirect automobile	2,085		1,656		9		2,077		1,681		8
Installment	288		244		245		294		252		252
Residential mortgage	3,496		3,496		730		2,519		2,519		421
Home equity lines of credit	693		560		442		812		675		675
Loans	$	25,440	$	21,501	$	2,488	$	15,729	$	12,851	$	3,041



	June 30, 2016				December 31, 2015
(in thousands)	Unpaid Principal Balance		Recorded Investment⁽¹⁾		Unpaid Principal Balance		Recorded Investment⁽¹⁾
Impaired Loans with No Allowance
Commercial	$	4,786	$	3,240	$	17,345	$	14,580
SBA	4,587		4,197		14,118		10,499
Construction	7,474		5,455		8,045		5,940
Installment	1,467		180		1,487		191
Residential mortgage	3,580		3,580		2,713		2,712
Loans	$	21,894	$	16,652	$	43,708	$	33,922

⁽¹⁾The primary difference between the unpaid principal balance and recorded investment represents charge offs previously taken; it excludes accrued interest receivable due to materiality. Related allowance is calculated on the recorded investment, not unpaid principal balance.

Average impaired loans and interest income recognized

The average recorded investment in impaired loans and interest income recognized for the three and six months ended June 30, 2016 and 2015, by class, are summarized in the table below. Interest income recognized during the periods on a cash basis was insignificant.



	Three Months Ended June 30,
	2016				2015
(in thousands)	Average Balance		Interest Income Recognized		Average Balance		Interest Income Recognized
Commercial	$	12,765	$	149	$	21,936	$	252
SBA	11,528		35		15,806		327
Construction	5,522		5		7,054		39
Indirect automobile	2,033		53		1,828		65
Installment	425		27		491		30
Residential mortgage	6,887		25		4,768		35
Home equity lines of credit	629		25		960		22
Total	$	39,789	$	319	$	52,843	$	770



	Six Months Ended June 30,
	2016				2015
(in thousands)	Average Balance		Interest Income Recognized		Average Balance		Interest Income Recognized
Commercial	$	14,746	$	332	$	22,314	$	491
SBA	12,464		191		16,364		534
Construction	5,736		9		7,253		47
Indirect automobile	2,156		125		1,876		138
Installment	430		55		497		61
Residential mortgage	6,195		70		4,871		57
Home equity lines of credit	650		48		932		36
Total	$	42,377	$	830	$	54,107	$	1,364

Schedule of loans by loan grade

The following tables present the recorded investment in loans, by loan class and risk rating category, as of June 30, 2016 and December 31, 2015.



(in thousands)	June 30, 2016
Asset Rating	Commercial		SBA		Construction		Indirect Automobile		Installment		Residential Mortgage		Home Equity Lines of Credit		Total
Pass	$	726,948	$	126,349	$	207,900	$	—	$	45,595	$	316,728	$	133,240	$	1,556,760
Special Mention	31,618		9,549		2,083		—		185		6,207		416		50,058
Substandard	38,720		8,185		7,585		3,275		752		13,961		2,280		74,758
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
	797,286		144,083		217,568		3,275		46,532		336,896		135,936		1,681,576
Ungraded Performing	—		—		—		1,509,131		—		—		—		1,509,131
Total	$	797,286	$	144,083	$	217,568	$	1,512,406	$	46,532	$	336,896	$	135,936	$	3,190,707



(in thousands)	December 31, 2015
Asset Rating	Commercial		SBA		Construction		Indirect Automobile		Installment		Residential Mortgage		Home Equity Lines of Credit		Total
Pass	$	638,051	$	119,690	$	166,811	$	—	$	12,839	$	289,091	$	112,700	$	1,339,182
Special Mention	12,136		5,477		2,040		—		418		3,358		267		23,696
Substandard	53,104		10,826		8,182		3,537		798		9,929		1,750		88,126
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
	703,291		135,993		177,033		3,537		14,055		302,378		114,717		1,451,004
Ungraded Performing	—		—		—		1,445,944		—		—		—		1,445,944
Total	$	703,291	$	135,993	$	177,033	$	1,449,481	$	14,055	$	302,378	$	114,717	$	2,896,948

Certain loans transfered or acquired during the period

The tables below show the balances acquired for these two subsections of the portfolio as of the acquisition date. Contractually required principal and interest payments are based on a loan's contractual rate and payment schedule at acquisition, assuming no loss or prepayment.

Acquired Performing Loans



(in thousands)	2016
Contractually required principal and interest payments at acquisition	$	173,726
Expected losses and foregone interest	(3,591		)
Cash flows expected to be collected at acquisition	$	170,135
Fair value of acquired performing loans at acquisition	$	145,913

Acquired PCI Loans



(in thousands)	2016
Contractually required principal and interest payments at acquisition	$	2,515
Less: Nonaccretable difference (expected losses and foregone interest)	(962		)
Cash flows expected to be collected at acquisition	1,553
Less: Accretable yield	(92		)
Basis in acquired PCI loans at acquisition	$	1,461

Schedule of purchase credit impaired loans receivable, reconciliation of income expected

Accretable yield, or income expected to be collected on PCI loans at June 30, 2016 and December 31, 2015, was as follows.



(in thousands)	June 30, 2016			December 31, 2015
Beginning balance	$	3,797		$	1,649
Increase due to acquired loans	92			1,371
Accretion of income	(1,031		)	(768		)
Other activity, net	182			1,545
Ending balance	$	3,040		$	3,797