LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables)

9 Months Ended

Sep. 30, 2016

Loans and allowance for loan and losses

Schedule of composition of loan portfolio

(in thousands)	September 30, 2016		December 31, 2015
Residential real estate:
Owner occupied	$	1,028,471	$	1,081,934
Owner occupied - correspondent*		159,955		249,344
Non owner occupied		149,610		116,294
Commercial real estate		999,852		824,887
Commercial real estate - purchased whole loans*		36,085		35,674
Construction & land development		94,289		66,500
Commercial & industrial		250,094		229,721
Lease financing receivables		12,186		8,905
Warehouse lines of credit		661,186		386,729
Home equity		335,116		289,194
Consumer:
RPG loans*		16,453		7,204
Credit cards		12,581		11,068
Overdrafts		795		685
Purchased whole loans*		6,895		5,892
Other consumer		59,463		12,579
Total loans**		3,823,031		3,326,610
Allowance for loan and lease losses		(30,436)		(27,491)
Total loans, net	$	3,792,595	$	3,299,119

*Identifies loans to borrowers located primarily outside of the Bank’s market footprint.

**Total loans are presented inclusive of premiums, discounts and net loan origination fees and costs. See table directly below for expanded detail.

Schedule that reconciles the contractually receivable and carrying amounts of loans

(in thousands)	September 30, 2016		December 31, 2015
Contractual receivable	$	3,828,586	$	3,329,741
Unearned income(1)		(963)		(741)
Unamortized premiums(2)		2,036		3,792
Unaccreted discounts(3)		(10,146)		(7,860)
Net unamortized deferred origination fees and costs		3,518		1,678
Carrying value of loans	$	3,823,031	$	3,326,610

(1) Unearned income relates to lease financing receivables.

(2) Premiums predominately relate to loans acquired through the Bank’s Correspondent Lending channel.

(3) Unaccreted discounts include accretable and non-accretable discounts and predominately relate to loans acquired in the Bank’s 2016 Cornerstone acquisition and its 2012 FDIC-assisted transactions.

Schedule of loans purchased by class

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2016		2015		2016		2015
Residential real estate:
Owner occupied - correspondent*	$	9,631	$	22,003	$	44,454	$	84,804
Consumer:
Purchased whole loans*		—		2,453		4,422		2,815
Total purchased loans	$	9,631	$	24,456	$	48,876	$	87,619

* Represents origination amount, inclusive of applicable purchase premiums.

Reconciliation of contractually-required and carrying amounts of PCI loans

(in thousands)	September 30, 2016		December 31, 2015
Contractually-required principal	$	19,612	$	18,250
Non-accretable amount		(1,853)		(1,582)
Accretable amount		(3,860)		(4,125)
Carrying value of loans	$	13,899	$	12,543

Rollforward of the accretable amount on PCI loans

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2016		2015		2016		2015
Balance, beginning of period	$	(4,087)	$	(4,323)	$	(4,125)	$	(2,297)
Transfers between non-accretable and accretable		179		(573)		(299)		(3,927)
Net accretion into interest income on loans, including loan fees		48		684		945		2,012
Generated from acquisition of Cornerstone Bancorp, Inc. (recasted)		—		—		(381)		—
Balance, end of period	$	(3,860)	$	(4,212)	$	(3,860)	$	(4,212)

Schedule of the risk category of loans by class of loans based on the bank's internal analysis performed

									Purchased		Purchased
									Credit		Credit
									Impaired		Impaired		Total
September 30, 2016			Special				Doubtful /		Loans -		Loans -		Rated
(in thousands)	Pass		Mention*		Substandard*		Loss		Group 1		Substandard		Loans**
Residential real estate:
Owner occupied	$	—	$	22,952	$	14,708	$	—	$	2,509	$	—	$	40,169
Owner occupied - correspondent		—		—		—		—		—		—		—
Non owner occupied		—		398		1,104		—		793		—		2,295
Commercial real estate		979,008		5,656		4,816		—		10,372		—		999,852
Commercial real estate - purchased whole loans		36,085		—		—		—		—		—		36,085
Construction & land development		93,397		92		800		—		—		—		94,289
Commercial & industrial		249,035		853		176		—		30		—		250,094
Lease financing receivables		12,186						—		—		—		12,186
Warehouse lines of credit		661,186		—		—		—		—		—		661,186
Home equity		—		109		1,941		—		194		—		2,244
Consumer:
RPG loans		—		—		82		—		—		—		82
Credit cards		—		—		—		—		—		—		—
Overdrafts		—		—		—		—		—		—		—
Purchased whole loans		—		—		107		—		—		—		107
Other consumer		—		24		58		—		1		—		83
Total rated loans	$	2,030,897	$	30,084	$	23,792	$	—	$	13,899	$	—	$	2,098,672

									Purchased		Purchased
									Credit		Credit
									Impaired		Impaired		Total
December 31, 2015			Special				Doubtful /		Loans -		Loans -		Rated
(in thousands)	Pass		Mention*		Substandard*		Loss		Group 1		Substandard		Loans**
Residential real estate:
Owner occupied	$	—	$	24,301	$	14,577	$	—	$	560	$	—	$	39,438
Owner occupied - correspondent		—		—		—		—		—		—		—
Non owner occupied		—		860		1,557		—		785		—		3,202
Commercial real estate		803,369		5,070		6,530		—		9,918		—		824,887
Commercial real estate - Purchased whole loans		35,674		—		—		—		—		—		35,674
Construction & land development		63,750		96		2,621		—		33		—		66,500
Commercial & industrial		227,344		936		194		—		1,247		—		229,721
Lease financing receivables		8,905		—		—		—		—		—		8,905
Warehouse lines of credit		386,729		—		—		—		—		—		386,729
Home equity		—		21		2,296		—		—		—		2,317
Consumer:
RPG loans		—		—		—		—		—		—		—
Credit cards		—		—		—		—		—		—		—
Overdrafts		—		—		—		—		—		—		—
Purchased whole loans		—		—		—		—		—		—		—
Other consumer		—		28		58		—		—		—		86
Total rated loans	$	1,525,771	$	31,312	$	27,833	$	—	$	12,543	$	—	$	1,597,459

*At September 30, 2016 and December 31, 2015, Special Mention included $176,000 and $180,000 and Substandard included $1 million and $1 million that were removed from PCI accounting in accordance with ASC 310-30-35-13 due to a post-acquisition troubled debt restructuring.

** The above tables exclude all non-classified residential real estate, home equity and consumer loans. The Bank does not formally risk rate certain consumer loans, but for the table above, considers such loans to be substandard if nonaccrual or 90-days-or-more past due.

Schedule of activity in the Allowance

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2016		2015		2016		2015
Allowance, beginning of period	$	29,308	$	25,248	$	27,491	$	24,410
Charge-offs - Core Banking		(723)		(676)		(2,139)		(1,853)
Charge-offs - RPG		(1,352)		(182)		(6,546)		(208)
Total charge-offs		(2,075)		(858)		(8,685)		(2,061)
Recoveries - Core Banking		480		312		1,185		1,027
Recoveries - RPG		234		24		956		261
Total recoveries		714		336		2,141		1,288
Net (charge-offs) recoveries - Core Banking		(243)		(364)		(954)		(826)
Net (charge-offs) recoveries - RPG		(1,118)		(158)		(5,590)		53
Net (charge-offs) recoveries		(1,361)		(522)		(6,544)		(773)
Provision - Core Banking		477		1,100		2,253		2,192
Provision - RPG		2,012		1,133		7,236		1,130
Total provision		2,489		2,233		9,489		3,322
Allowance, end of period	$	30,436	$	26,959	$	30,436	$	26,959

Schedule of activity in the Allowance by portfolio class

The following tables present the activity in the Allowance by portfolio class for the three months ended September 30, 2016 and 2015:

	Residential Real Estate								Commercial
			Owner						Real Estate -						Lease
Three Months Ended	Owner		Occupied		Non Owner		Commercial		Purchased		Construction &		Commercial &		Financing
September 30, 2016 (in thousands)	Occupied		Correspondent		Occupied		Real Estate		Whole Loans		Land Development		Industrial		Receivables
Beginning balance	$	7,893	$	592	$	1,052	$	7,769	$	36	$	1,332	$	1,441	$	115
Provision		(562)		(200)		113		192		—		66		(182)		13
Charge-offs		(56)		—		—		—		—		—		—		—
Recoveries		142		—		—		34		—		10		121		—
Ending balance	$	7,417	$	392	$	1,165	$	7,995	$	36	$	1,408	$	1,380	$	128

	Warehouse				Consumer
	Lines of		Home		RPG		Credit				Purchased		Other
(continued)	Credit		Equity		Loans		Cards		Overdrafts		Whole Loans		Consumer		Total
Beginning balance	$	1,465	$	3,016	$	2,451	$	456	$	824	$	535	$	331	$	29,308
Provision		188		633		2,012		105		(34)		38		107		2,489
Charge-offs		—		(145)		(1,352)		(91)		(239)		(93)		(99)		(2,075)
Recoveries		—		31		234		17		55		9		61		714
Ending balance	$	1,653	$	3,535	$	3,345	$	487	$	606	$	489	$	400	$	30,436

	Residential Real Estate								Commercial
			Owner						Real Estate -						Lease
Three Months Ended	Owner		Occupied		Non Owner		Commercial		Purchased		Construction &		Commercial &		Financing
September 30, 2015 (in thousands)	Occupied		Correspondent		Occupied		Real Estate		Whole Loans		Land Development		Industrial		Receivables
Beginning balance	$	8,202	$	608	$	904	$	7,840	$	35	$	1,100	$	1,191	$	76
Provision		330		7		83		200		—		31		235		7
Charge-offs		(153)		—		(97)		(27)		—		—		—		—
Recoveries		76		—		—		—		—		—		18		—
Ending balance	$	8,455	$	615	$	890	$	8,013	$	35	$	1,131	$	1,444	$	83

	Warehouse				Consumer
	Lines of		Home		RPG		Credit				Purchased		Other
(continued)	Credit		Equity		Loans		Cards		Overdrafts		Whole Loans		Consumer		Total
Beginning balance	$	1,222	$	2,765	$	252	$	399	$	286	$	207	$	161	$	25,248
Provision		(238)		124		1,133		40		138		154		(11)		2,233
Charge-offs		—		(110)		(182)		(30)		(152)		(25)		(82)		(858)
Recoveries		—		54		24		6		63		1		94		336
Ending balance	$	984	$	2,833	$	1,227	$	415	$	335	$	337	$	162	$	26,959

The following tables present the activity in the Allowance by portfolio class for the nine months ended September 30, 2016 and 2015:

	Residential Real Estate								Commercial
			Owner						Real Estate -						Lease
Nine Months Ended	Owner		Occupied		Non Owner		Commercial		Purchased		Construction &		Commercial &		Financing
September 30, 2016 (in thousands)	Occupied		Correspondent		Occupied		Real Estate		Whole Loans		Land Development		Industrial		Receivables
Beginning balance	$	8,301	$	623	$	1,052	$	7,636	$	36	$	1,303	$	1,455	$	89
Provision		(860)		(231)		105		260		—		119		130		39
Charge-offs		(317)		—		—		(41)		—		(44)		(330)		—
Recoveries		293		—		8		140		—		30		125		—
Ending balance	$	7,417	$	392	$	1,165	$	7,995	$	36	$	1,408	$	1,380	$	128

	Warehouse				Consumer
	Lines of		Home		RPG		Credit				Purchased		Other
(continued)	Credit		Equity		Loans		Cards		Overdrafts		Whole Loans		Consumer		Total
Beginning balance	$	967	$	2,996	$	1,699	$	448	$	351	$	392	$	143	$	27,491
Provision		686		633		7,236		163		639		298		272		9,489
Charge-offs		—		(229)		(6,546)		(153)		(571)		(216)		(238)		(8,685)
Recoveries		—		135		956		29		187		15		223		2,141
Ending balance	$	1,653	$	3,535	$	3,345	$	487	$	606	$	489	$	400	$	30,436

	Residential Real Estate								Commercial
			Owner						Real Estate -						Lease
Nine Months Ended	Owner		Occupied		Non Owner		Commercial		Purchased		Construction &		Commercial &		Financing
September 30, 2015 (in thousands)	Occupied		Correspondent		Occupied		Real Estate		Whole Loans		Land Development		Industrial		Receivables
Beginning balance	$	8,565	$	567	$	837	$	7,740	$	34	$	926	$	1,167	$	25
Provision		157		48		173		364		1		205		277		58
Charge-offs		(467)		—		(126)		(181)		—		—		(56)		—
Recoveries		200		—		6		90		—		—		56		—
Ending balance	$	8,455	$	615	$	890	$	8,013	$	35	$	1,131	$	1,444	$	83

	Warehouse				Consumer
	Lines of		Home		RPG		Credit				Purchased		Other
(continued)	Credit		Equity		Loans		Cards		Overdrafts		Whole Loans		Consumer		Total
Beginning balance	$	799	$	2,730	$	44	$	285	$	382	$	185	$	124	$	24,410
Provision		185		172		1,130		184		116		248		4		3,322
Charge-offs		—		(182)		(208)		(101)		(401)		(97)		(242)		(2,061)
Recoveries		—		113		261		47		238		1		276		1,288
Ending balance	$	984	$	2,833	$	1,227	$	415	$	335	$	337	$	162	$	26,959

Schedule of non-performing loans and non-performing assets and select credit quality ratios

(dollars in thousands)	September 30, 2016			December 31, 2015
Loans on nonaccrual status*	$	17,769		$	21,712
Loans past due 90-days-or-more and still on accrual**		223			224
Total nonperforming loans		17,992			21,936
Other real estate owned		2,435			1,220
Total nonperforming assets	$	20,427		$	23,156
Credit Quality Ratios:
Nonperforming loans to total loans		0.47	%		0.66	%
Nonperforming assets to total loans (including OREO)		0.53			0.70
Nonperforming assets to total assets		0.42			0.55

*Loans on nonaccrual status include impaired loans.

**Loans past due 90-days-or-more and still accruing consist of PCI loans or smaller balance consumer loans.

Schedule of recorded investment in non-accrual loans and loans past due over 90-days-or-more and still on accrual by class of loans

					Past Due 90-Days-or-More
	Nonaccrual				and Still Accruing Interest*
(in thousands)	September 30, 2016		December 31, 2015		September 30, 2016		December 31, 2015
Residential real estate:
Owner occupied	$	11,947	$	13,197	$	34	$	—
Owner occupied - correspondent		—		—		—		—
Non owner occupied		837		935		—		—
Commercial real estate		3,305		3,941		—		224
Commercial real estate - purchased whole loans		—		—		—		—
Construction & land development		80		1,589		—		—
Commercial & industrial		176		194		—		—
Lease financing receivables		—		—		—		—
Warehouse lines of credit		—		—		—		—
Home equity		1,365		1,793		—		—
Consumer:
RPG loans		—		—		82		—
Credit cards		—		—		—		—
Overdrafts		—		—		—		—
Purchased whole loans		—		—		107		—
Other consumer		59		63		—		—
Total	$	17,769	$	21,712	$	223	$	224

*  Loans past due 90-days-or-more and still accruing consist of PCI loans or smaller balance consumer loans

Schedule of aging of the recorded investment in loans by class of loans

The following tables present the aging of the recorded investment in loans by class of loans:

	30 - 59			60 - 89			90 or More
September 30, 2016	Days			Days			Days			Total			Total
(dollars in thousands)	Delinquent			Delinquent			Delinquent*			Delinquent**			Current		Total
Residential real estate:
Owner occupied	$	2,168		$	1,029		$	1,848		$	5,045		$	1,023,426	$	1,028,471
Owner occupied - correspondent		—			—			—			—			159,955		159,955
Non owner occupied		287			—			9			296			149,314		149,610
Commercial real estate		17			—			419			436			999,416		999,852
Commercial real estate - purchased whole loans		—			—			—			—			36,085		36,085
Construction & land development		41			—			—			41			94,248		94,289
Commercial & industrial		—			—			—			—			250,094		250,094
Lease financing receivables		—			—			—			—			12,186		12,186
Warehouse lines of credit		—			—			—			—			661,186		661,186
Home equity		912			426			357			1,695			333,421		335,116
Consumer:
RPG loans		561			21			82			664			15,789		16,453
Credit cards		23			5			—			28			12,553		12,581
Overdrafts		185			—			—			185			610		795
Purchased whole loans		127			50			107			284			6,611		6,895
Other consumer		33			7			—			40			59,423		59,463
Total	$	4,354		$	1,538		$	2,822		$	8,714		$	3,814,317	$	3,823,031
Delinquency ratio***		0.11	%		0.04	%		0.07	%		0.23	%

	30 - 59			60 - 89			90 or More
December 31, 2015	Days			Days			Days			Total			Total
(dollars in thousands)	Delinquent			Delinquent			Delinquent*			Delinquent**			Current		Total
Residential real estate:
Owner occupied	$	1,960		$	1,044		$	3,878		$	6,882		$	1,075,052	$	1,081,934
Owner occupied - correspondent		—			—			—			—			249,344		249,344
Non owner occupied		14			—			39			53			116,241		116,294
Commercial real estate		178			—			933			1,111			823,776		824,887
Commercial real estate - purchased whole loans		—			—			—			—			35,674		35,674
Construction & land development		—			—			1,500			1,500			65,000		66,500
Commercial & industrial		299			—			—			299			229,422		229,721
Lease financing receivables		—			—			—			—			8,905		8,905
Warehouse lines of credit		—			—			—			—			386,729		386,729
Home equity		206			1			1,186			1,393			287,801		289,194
Consumer:
RPG loans		246			—			—			246			6,958		7,204
Credit cards		10			2			—			12			11,056		11,068
Overdrafts		133			—			—			133			552		685
Purchased whole loans		5			42			—			47			5,845		5,892
Other consumer		37			18			—			55			12,524		12,579
Total	$	3,088		$	1,107		$	7,536		$	11,731		$	3,314,879	$	3,326,610
Delinquency ratio***		0.09	%		0.03	%		0.23	%		0.35	%

*All loans past due 90-days-or-more, excluding PCI loans and small balance consumer loans, were on nonaccrual status.

**Delinquent status may be determined by either the number of days past due or number of payments past due.

***Represents total loans 30-days-or-more past due by aging category divided by total loans.

Schedule of Bank's impaired loans

(in thousands)	September 30, 2016		December 31, 2015
Loans with no allocated Allowance	$	22,292	$	26,143
Loans with allocated Allowance		32,789		39,980
Total impaired loans	$	55,081	$	66,123
Amount of the Allowance	$	5,009	$	5,427

Schedule of balance in the Allowance and the recorded investment in loans by portfolio class based on impairment method

	Residential Real Estate								Commercial
			Owner						Real Estate -						Lease
	Owner		Occupied -		Non Owner		Commercial		Purchased		Construction &		Commercial &		Financing
September 30, 2016 (in thousands)	Occupied		Correspondent		Occupied		Real Estate		Whole Loans		Land Development		Industrial		Receivables
Allowance:
Ending Allowance balance:
Individually evaluated for impairment, excluding PCI loans	$	3,397	$	—	$	103	$	358	$	—	$	122	$	176	$	—
Collectively evaluated for impairment		4,006		392		1,003		7,257		36		1,286		1,204		128
PCI loans with post acquisition impairment		14		—		59		380		—		—		—		—
PCI loans without post acquisition impairment		—		—		—		—		—		—		—		—
Total ending Allowance:	$	7,417	$	392	$	1,165	$	7,995	$	36	$	1,408	$	1,380	$	128
Loans:
Impaired loans individually evaluated, excluding PCI loans	$	35,109	$	—	$	1,331	$	11,035	$	—	$	891	$	254	$	—
Loans collectively evaluated for impairment		990,853		159,955		147,486		978,445		36,085		93,398		249,810		12,186
PCI loans with post acquisition impairment		454		—		535		3,428		—		—		—		—
PCI loans without post acquisition impairment		2,055		—		258		6,944		—		—		30		—
Total ending loan balance	$	1,028,471	$	159,955	$	149,610	$	999,852	$	36,085	$	94,289	$	250,094	$	12,186

	Warehouse				Consumer
	Lines of		Home		RPG		Credit				Purchased		Other
(continued)	Credit		Equity		Loans		Cards		Overdrafts		Whole Loans		Consumer		Total
Allowance:
Ending Allowance balance:
Individually evaluated for impairment, excluding PCI loans	$	—	$	386	$	—	$	—	$	—	$	—	$	14	$	4,556
Collectively evaluated for impairment		1,653		3,149		3,345		487		606		489		386		25,427
PCI loans with post acquisition impairment		—		—		—		—		—		—		—		453
PCI loans without post acquisition impairment		—		—		—		—		—		—		—		—
Total ending Allowance:	$	1,653	$	3,535	$	3,345	$	487	$	606	$	489	$	400	$	30,436
Loans:
Impaired loans individually evaluated, excluding PCI loans	$	—	$	1,961	$	—	$	—	$	—	$	—	$	83	$	50,664
Loans collectively evaluated for impairment		661,186		332,961		16,453		12,581		795		6,895		59,379		3,758,468
PCI loans with post acquisition impairment		—		—		—		—		—		—		—		4,417
PCI loans without post acquisition impairment		—		194		—		—		—		—		1		9,482
Total ending loan balance	$	661,186	$	335,116	$	16,453	$	12,581	$	795	$	6,895	$	59,463	$	3,823,031

	Residential Real Estate								Commercial
			Owner						Real Estate -						Lease
	Owner		Occupied -		Non Owner		Commercial		Purchased		Construction &		Commercial &		Financing
December 31, 2015 (in thousands)	Occupied		Correspondent		Occupied		Real Estate		Whole Loans		Land Development		Industrial		Receivables
Allowance:
Ending Allowance balance:
Individually evaluated for impairment, excluding PCI loans	$	3,820	$	—	$	78	$	339	$	—	$	159	$	196	$	—
Collectively evaluated for impairment		4,471		623		878		6,806		36		1,144		1,137		89
PCI loans with post acquisition impairment		10		—		96		491		—		—		122		—
PCI loans without post acquisition impairment		—		—		—		—		—		—		—		—
Total ending Allowance:	$	8,301	$	623	$	1,052	$	7,636	$	36	$	1,303	$	1,455	$	89
Loans:
Impaired loans individually evaluated, excluding PCI loans	$	39,041	$	—	$	2,351	$	12,441	$	—	$	2,717	$	322	$	—
Loans collectively evaluated for impairment		1,042,334		249,344		113,158		802,528		35,674		63,750		228,151		8,905
PCI loans with post acquisition impairment		65		—		785		4,806		—		—		1,193		—
PCI loans without post acquisition impairment		494		—		—		5,112		—		33		55		—
Total ending loan balance	$	1,081,934	$	249,344	$	116,294	$	824,887	$	35,674	$	66,500	$	229,721	$	8,905

	Warehouse				Consumer
	Lines of		Home		RPG		Credit				Purchased		Other
(continued)	Credit		Equity		Loans		Cards		Overdrafts		Whole Loans		Consumer		Total
Allowance:
Ending Allowance balance:
Individually evaluated for impairment, excluding PCI loans	$	—	$	100	$	—	$	—	$	—	$	—	$	16	$	4,708
Collectively evaluated for impairment		967		2,896		1,699		448		351		392		127		22,064
PCI loans with post acquisition impairment		—		—		—		—		—		—		—		719
PCI loans without post acquisition impairment		—		—		—		—		—		—		—		—
Total ending Allowance:	$	967	$	2,996	$	1,699	$	448	$	351	$	392	$	143	$	27,491
Loans:
Impaired loans individually evaluated, excluding PCI loans	$	—	$	2,316	$	—	$	—	$	—	$	—	$	86	$	59,274
Loans collectively evaluated for impairment		386,729		286,878		7,204		11,068		685		5,892		12,493		3,254,793
PCI loans with post acquisition impairment		—		—		—		—		—		—		—		6,849
PCI loans without post acquisition impairment		—		—		—		—		—		—		—		5,694
Total ending loan balance	$	386,729	$	289,194	$	7,204	$	11,068	$	685	$	5,892	$	12,579	$	3,326,610

Schedule of loans individually evaluated for impairment by class of loans

	As of						Three Months Ended						Nine Months Ended
	September 30, 2016						September 30, 2016						September 30, 2016
											Cash Basis						Cash Basis
	Unpaid						Average		Interest		Interest		Average		Interest		Interest
	Principal		Recorded		Allowance		Recorded		Income		Income		Recorded		Income		Income
(in thousands)	Balance		Investment		Allocated		Investment		Recognized		Recognized		Investment		Recognized		Recognized
Impaired loans with no related allowance recorded:
Residential real estate:
Owner occupied	$	13,628	$	13,285	$	—	$	13,702	$	37	$	—	$	13,376	$	104	$	—
Owner occupied - correspondent		—		—		—		—		—		—		—		—		—
Non owner occupied		867		845		—		891		—		—		1,431		—		—
Commercial real estate		6,001		6,000		—		6,349		32		—		6,764		109		—
Commercial real estate - purchased whole loans		—		—		—		—		—		—		—		—		—
Construction & land development		476		476		—		476		5		—		874		15		—
Commercial & industrial		78		78		—		192		2		—		103		5		—
Lease financing receivables		—		—		—		—		—		—		—		—		—
Warehouse lines of credit		—		—		—		—		—		—		—		—		—
Home equity		1,722		1,563		—		1,610		3		—		1,874		14		—
Consumer:
RPG loans		—		—		—		—		—		—		—		—		—
Credit cards		—		—		—		—		—		—		—		—		—
Overdrafts		—		—		—		—		—		—		—		—		—
Purchased whole loans		—		—		—		—		—		—		—		—		—
Other consumer		55		45		—		47		—		—		69		—		—
Impaired loans with an allowance recorded:
Residential real estate:
Owner occupied		22,298		22,278		3,411		22,803		204		—		23,936		600		—
Owner occupied - correspondent		—		—		—		—		—		—		—		—		—
Non owner occupied		1,021		1,021		162		832		11		—		977		31		—
Commercial real estate		8,466		8,463		738		9,191		93		—		9,369		280		—
Commercial real estate - purchased whole loans		—		—		—		—		—		—		—		—		—
Construction & land development		415		415		122		421		5		—		482		15		—
Commercial & industrial		176		176		176		179		—		—		841		—		—
Lease financing receivables		—		—		—		—		—		—		—		—		—
Warehouse lines of credit		—		—		—		—		—		—		—		—		—
Home equity		410		398		386		236		5		—		203		11		—
Consumer:
RPG loans		—		—		—		—		—		—		—		—		—
Credit cards		—		—		—		—		—		—		—		—		—
Overdrafts		—		—		—		—		—		—		—		—		—
Purchased whole loans		—		—		—		—		—		—		—		—		—
Other consumer		60		38		14		39		—		—		42		1		—
Total impaired loans	$	55,673	$	55,081	$	5,009	$	56,968	$	397	$	—	$	60,341	$	1,185	$	—

	As of						Three Months Ended						Nine Months Ended
	December 31, 2015						September 30, 2015						September 30, 2015
											Cash Basis						Cash Basis
	Unpaid						Average		Interest		Interest		Average		Interest		Interest
	Principal		Recorded		Allowance		Recorded		Income		Income		Recorded		Income		Income
(in thousands)	Balance		Investment		Allocated		Investment		Recognized		Recognized		Investment		Recognized		Recognized
Impaired loans with no related allowance recorded:
Residential real estate:
Owner occupied	$	14,287	$	13,256	$	—	$	12,404	$	12	$	—	$	9,142	$	46	$	—
Owner occupied - correspondent		—		—		—		—		—		—		—		—		—
Non owner occupied		1,978		1,928		—		2,210		8		—		2,306		25		—
Commercial real estate		7,406		6,743		—		8,939		78		—		12,029		228		—
Commercial real estate - purchased whole loans		—		—		—		—		—		—		—		—		—
Construction & land development		2,067		2,067		—		2,096		1		—		2,115		4		—
Commercial & industrial		18		18		—		1,546		24		—		2,663		74		—
Lease financing receivables		—		—		—		—		—		—		—		—		—
Warehouse lines of credit		—		—		—		2,374		—		—		—		—		—
Home equity		2,263		2,087		—		—		6		—		2,154		17		—
Consumer:
RPG loans		—		—		—		—		—		—		—		—		—
Credit cards		—		—		—		—		—		—		—		—		—
Overdrafts		—		—		—		—		—		—		—		—		—
Purchased whole loans		—		—		—		—		—		—		—		—		—
Other consumer		44		44		—		42		—		—		32		—		—
Impaired loans with an allowance recorded:
Residential real estate:
Owner occupied		25,896		25,850		3,830		26,984		219		—		31,403		657		—
Owner occupied - correspondent		—		—		—		—		—		—		—		—		—
Non owner occupied		1,231		1,208		174		1,947		24		—		2,384		72		—
Commercial real estate		10,546		10,504		830		11,706		96		—		11,906		288		—
Commercial real estate - purchased whole loans		—		—		—		—		—		—		—		—		—
Construction & land development		650		650		159		663		9		—		622		27		—
Commercial & industrial		1,497		1,497		318		3,278		47		—		2,360		142		—
Lease financing receivables		—		—		—		—		—		—		—		—		—
Warehouse lines of credit		—		—		—		—		—		—		—		—		—
Home equity		258		229		100		151		1		—		336		2		—
Consumer:
RPG loans		—		—		—		—		—		—		—		—		—
Credit cards		—		—		—		—		—		—		—		—		—
Overdrafts		—		—		—		—		—		—		—		—		—
Purchased whole loans		—		—		—		—		—		—		—		—		—
Other consumer		42		42		16		56		—		—		55		—		—
Total impaired loans	$	68,183	$	66,123	$	5,427	$	74,396	$	525	$	—	$	79,507	$	1,582	$	—

Schedule of TDRs differentiated by loan type and accrual status

	Troubled Debt			Troubled Debt			Total
	Restructurings on			Restructurings on			Troubled Debt
	Nonaccrual Status			Accrual Status			Restructurings
	Number of	Recorded		Number of	Recorded		Number of	Recorded
September 30, 2016 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment
Residential real estate	79	$	7,467	205	$	23,271	284	$	30,738
Commercial real estate	7		3,017	16		7,532	23		10,549
Construction & land development	1		80	4		811	5		891
Commercial & industrial	1		176	2		78	3		254
Total troubled debt restructurings	88	$	10,740	227	$	31,692	315	$	42,432

	Troubled Debt			Troubled Debt			Total
	Restructurings on			Restructurings on			Troubled Debt
	Nonaccrual Status			Accrual Status			Restructurings
	Number of	Recorded		Number of	Recorded		Number of	Recorded
December 31, 2015 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment
Residential real estate	74	$	7,365	233	$	27,844	307	$	35,209
Commercial real estate	9		3,324	17		8,008	26		11,332
Construction & land development	2		1,589	6		1,128	8		2,717
Commercial & industrial	1		194	5		128	6		322
Total troubled debt restructurings	86	$	12,472	261	$	37,108	347	$	49,580

Schedule of categories of TDR loan modifications outstanding and respective performance under modified terms

	Troubled Debt			Troubled Debt
	Restructurings			Restructurings			Total
	Performing to			Not Performing to			Troubled Debt
	Modified Terms			Modified Terms			Restructurings
	Number of	Recorded		Number of	Recorded		Number of	Recorded
September 30, 2016 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment
Residential real estate loans (including home equity loans):
Interest only payments	1	$	10	1	$	502	2	$	512
Rate reduction	159		20,229	55		6,616	214		26,845
Principal deferral	8		651	7		293	15		944
Legal modification	22		988	31		1,449	53		2,437
Total residential TDRs	190		21,878	94		8,860	284		30,738
Commercial related and construction/land development loans:
Interest only payments	3		974	1		430	4		1,404
Rate reduction	11		2,606	5		2,133	16		4,739
Principal deferral	8		4,841	3		710	11		5,551
Total commercial TDRs	22		8,421	9		3,273	31		11,694
Total troubled debt restructurings	212	$	30,299	103	$	12,133	315	$	42,432

	Troubled Debt			Troubled Debt
	Restructurings			Restructurings			Total
	Performing to			Not Performing to			Troubled Debt
	Modified Terms			Modified Terms			Restructurings
	Number of	Recorded		Number of	Recorded		Number of	Recorded
December 31, 2015 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment
Residential real estate loans (including home equity loans):
Interest only payments	2	$	631	—	$	—	2	$	631
Rate reduction	183		24,734	46		5,650	229		30,384
Principal deferral	9		789	7		771	16		1,560
Legal modification	30		1,226	30		1,408	60		2,634
Total residential TDRs	224		27,380	83		7,829	307		35,209
Commercial related and construction/land development loans:
Interest only payments	6		1,517	1		481	7		1,998
Rate reduction	10		5,021	3		727	13		5,748
Principal deferral	12		2,726	8		3,899	20		6,625
Total commercial TDRs	28		9,264	12		5,107	40		14,371
Total troubled debt restructurings	252	$	36,644	95	$	12,936	347	$	49,580

Summary of categories of TDR loan modifications that occurred during the period

A summary of the categories of TDR loan modifications by respective performance as of September 30, 2016 and 2015 that were modified during the three months ended September 30, 2016 and 2015 follows:

	Troubled Debt			Troubled Debt
	Restructurings			Restructurings			Total
	Performing to			Not Performing to			Troubled Debt
	Modified Terms			Modified Terms			Restructurings
	Number of	Recorded		Number of	Recorded		Number of	Recorded
September 30, 2016 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment
Residential real estate loans (including home equity loans):
Interest only payments	—	$	—	—	$	—	—	$	—
Rate reduction	1		262	—		—	1		262
Principal deferral	—		—	—		—	—		—
Legal modification	3		263	1		135	4		398
Total residential TDRs	4		525	1		135	5		660
Commercial related and construction/land development loans:
Interest only payments	—		—	—		—	—		—
Rate reduction	1		88	1		137	2		225
Principal deferral	—		—	1		1,504	1		1,504
Total commercial TDRs	1		88	2		1,641	3		1,729
Total troubled debt restructurings	5	$	613	3	$	1,776	8	$	2,389

	Troubled Debt			Troubled Debt
	Restructurings			Restructurings			Total
	Performing to			Not Performing to			Troubled Debt
	Modified Terms			Modified Terms			Restructurings
	Number of	Recorded		Number of	Recorded		Number of	Recorded
September 30, 2015 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment
Residential real estate loans (including home equity loans):
Interest only payments	—	$	—	—	$	—	—	$	—
Rate reduction	2		195	—		—	2		195
Principal deferral	—		—	—		—	—		—
Legal modification	2		130	1		63	3		193
Total residential TDRs	4		325	1		63	5		388
Commercial related and construction/land development loans:
Interest only payments	—		—	—		—	—		—
Rate reduction	—		—	—		—	—		—
Principal deferral	—		—	1		1,621	1		1,621
Total commercial TDRs	—		—	1		1,621	1		1,621
Total troubled debt restructurings	4	$	325	2	$	1,684	6	$	2,009

The tables above are inclusive of loans that were TDRs at the end of previous periods and were re-modified, e.g., a maturity date extension during the current period.

As of September 30, 2016 and 2015,  26% and 16% of the Bank’s TDRs that occurred during the third quarters of 2016 and 2015 were performing according to their modified terms. The Bank provided approximately $75,000 and $9,000 in specific reserve allocations to clients whose loan terms were modified in TDRs during the third quarters of 2016 and 2015.  

There was no significant change between the pre and post modification loan balances for the three months ending September 30, 2016 and 2015.

A summary of the categories of TDR loan modifications by respective performance as of September 30, 2016 and 2015 that were modified during the nine months ended September 30, 2016 and 2015 follows:

	Troubled Debt			Troubled Debt
	Restructurings			Restructurings			Total
	Performing to			Not Performing to			Troubled Debt
	Modified Terms			Modified Terms			Restructurings
	Number of	Recorded		Number of	Recorded		Number of	Recorded
September 30, 2016 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment
Residential real estate loans (including home equity loans):
Interest only payments	—	$	—	—	$	—	—	$	—
Rate reduction	5		494	3		151	8		645
Principal deferral	—		—	—		—	—		—
Legal modification	5		350	3		212	8		562
Total residential TDRs	10		844	6		363	16		1,207
Commercial related and construction/land development loans:
Interest only payments	—		—	—		—	—		—
Rate reduction	1		88	1		137	2		225
Principal deferral	—		—	1		1,504	1		1,504
Total commercial TDRs	1		88	2		1,641	3		1,729
Total troubled debt restructurings	11	$	932	8	$	2,004	19	$	2,936

	Troubled Debt			Troubled Debt
	Restructurings			Restructurings			Total
	Performing to			Not Performing to			Troubled Debt
	Modified Terms			Modified Terms			Restructurings
	Number of	Recorded		Number of	Recorded		Number of	Recorded
September 30, 2015 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment
Residential real estate loans (including home equity loans):
Interest only payments	1	$	621	—	$	—	1	$	621
Rate reduction	6		594	5		455	11		1,049
Principal deferral	—		—	2		46	2		46
Legal modification	2		130	5		300	7		430
Total residential TDRs	9		1,345	12		801	21		2,146
Commercial related and construction/land development loans:
Interest only payments	1		170	—		—	1		170
Rate reduction	1		825	—		—	1		825
Principal deferral	3		724	2		1,722	5		2,446
Total commercial TDRs	5		1,719	2		1,722	7		3,441
Total troubled debt restructurings	14	$	3,064	14	$	2,523	28	$	5,587

The tables above are inclusive of loans that were TDRs at the end of previous periods and were re-modified, e.g., a maturity date extension during the current period.

Schedule of loans by class modified as troubled debt restructurings within the previous twelve months for which there was a payment default

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
		Recorded		Number of	Recorded		Number of	Recorded		Number of	Recorded
(dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment		Loans	Investment
Residential real estate:
Owner occupied	3	$	150	2	$	513	4	$	359	13	$	1,252
Owner occupied - correspondent	—		—	—		—	—		—	—		—
Non owner occupied	—		—	—		—	—		—	—		—
Commercial real estate	—		—	4		2,306	1		88	4		2,306
Commercial real estate - purchased whole loans	—		—	—		—	—		—	—		—
Construction & land development	—		—	—		—	—		—	—		—
Commercial & industrial	—		—	—		—	—		—	—		—
Lease financing receivables	—		—	—		—	—		—	—		—
Warehouse lines of credit	—		—	—		—	—		—	—		—
Home equity	1		135	—		—	1		135	—		—
Consumer:
RPG loans	—		—	—		—	—		—	—		—
Credit cards	—		—	—		—	—		—	—		—
Overdrafts	—		—	—		—	—		—	—		—
Purchased whole loans	—		—	—		—	—		—	—		—
Other consumer	—		—	—		—	—		—	—		—
Total	4	$	285	6	$	2,819	6	$	582	17	$	3,558

Schedule of carrying amount of foreclosed properties held

(in thousands)	September 30, 2016		December 31, 2015
Residential real estate	$	2,230	$	478
Commercial real estate		—		442
Construction & land development		205		300
Total other real estate owned	$	2,435	$	1,220

Schedule of recorded investment in consumer mortgage loans secured by residential real estate properties

(in thousands)	September 30, 2016		December 31, 2015
Recorded investment in consumer residential real estate mortgage loans in the process of foreclosure	$	1,287	$	4,602

Schedule of easy advances

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
(dollars in thousands)	2016		2016
Easy Advances originated	$	—	$	123,230
Provision for Easy Advances		—		3,127
Easy Advances net charged-offs		—		3,127
Easy Advances net charge-offs to total Easy Advances originated		NA		2.54	%

NA - Not applicable

Cornerstone

Loans and allowance for loan and losses

Schedule of loans acquired

	May 17, 2016
(in thousands)	Contractual Receivable		Non-accretable Amount		Accretable Amount		Acquisition-Day Fair Value
Residential real estate:
Owner occupied		17,901		—		143		18,044
Non owner occupied		11,196		—		(108)		11,088
Commercial real estate		106,089		—		(1,541)		104,548
Construction & land development		18,277		—		(505)		17,772
Commercial & industrial		11,462		—		(226)		11,236
Home equity		20,652		—		(373)		20,279
Consumer and other		2,347		—		(234)		2,113
Total loans - ASC 310-20		187,924		—		(2,844)		185,080
Residential real estate:
Owner occupied		549		(198)		(7)		344
Non owner occupied		1,721		(285)		(167)		1,269
Commercial real estate		4,315		(1,626)		(197)		2,492
Construction & land development		175		—		—		175
Commercial & industrial		66		(98)		1		(31)
Home equity		382		(78)		(11)		293
Consumer and other		4		(2)		—		2
Total loans - ASC 310-30 - purchased-credit-impaired loans		7,212		(2,287)		(381)		4,544
Total loans	$	195,136	$	(2,287)	$	(3,225)	$	189,624