Portfolio Loans | LOANS The loan portfolio is comprised of loans originated by the Company and loans that were acquired in connection with the Company’s acquisitions. These loans are accounted for using the guidance in the Accounting Standards Codification (ASC) section 310-30 and 310-20. Loans accounted for using ASC 310-30 are sometimes referred to as purchased credit impaired, or PCI, loans. The table below shows the loan portfolio composition including carrying value by segment of loans accounted for under ASC 310-30 (PCI loans) and loans not accounted for under this guidance, which includes our originated loans. March 31, 2017 December 31, 2016 Loans not accounted for as ASC 310-30 $ 3,802,681 $ 3,118,392 Loans accounted for as ASC 310-30 88,383 39,769 Total loans $ 3,891,064 $ 3,158,161 The following tables refer to loans not accounted for as ASC 310-30 loans. Below is a summary of loans by category at March 31, 2017 and December 31, 2016 : (in thousands) March 31, 2017 December 31, 2016 Commercial and industrial $ 1,773,105 $ 1,632,714 Real estate: Commercial - investor owned 726,413 544,808 Commercial - owner occupied 480,281 350,148 Construction and land development 288,342 194,542 Residential 356,415 240,760 Total real estate loans 1,851,451 1,330,258 Consumer and other 179,100 156,182 Loans, before unearned loan fees 3,803,656 3,119,154 Unearned loan fees, net (975 ) (762 ) Loans, including unearned loan fees $ 3,802,681 $ 3,118,392 A summary of the activity in the allowance for loan losses and the recorded investment in loans by class and category based on impairment method through March 31, 2017 , and at December 31, 2016 , is as follows: (in thousands) Commercial and industrial CRE - investor owned CRE - owner occupied Construction and land development Residential real estate Consumer and other Total Allowance for loan losses: Balance at December 31, 2016 $ 26,996 $ 3,420 $ 2,890 $ 1,304 $ 2,023 $ 932 $ 37,565 Provision (provision reversal) for loan losses 1,835 (105 ) (249 ) (11 ) (3 ) 66 1,533 Losses charged off (133 ) — — — (9 ) (29 ) (171 ) Recoveries 80 9 89 9 25 9 221 Balance at March 31, 2017 $ 28,778 $ 3,324 $ 2,730 $ 1,302 $ 2,036 $ 978 $ 39,148 (in thousands) Commercial and industrial CRE - investor owned CRE - owner occupied Construction and land development Residential real estate Consumer and other Total Balance March 31, 2017 Allowance for loan losses - Ending balance: Individually evaluated for impairment $ 5,047 $ — $ — $ 140 $ — $ — $ 5,187 Collectively evaluated for impairment 23,731 3,324 2,730 1,162 2,036 978 33,961 Total $ 28,778 $ 3,324 $ 2,730 $ 1,302 $ 2,036 $ 978 $ 39,148 Loans - Ending balance: Individually evaluated for impairment $ 12,152 $ 281 $ 1,591 $ 1,575 $ 61 $ — $ 15,660 Collectively evaluated for impairment 1,760,953 726,132 478,690 286,767 356,354 178,125 3,787,021 Total $ 1,773,105 $ 726,413 $ 480,281 $ 288,342 $ 356,415 $ 178,125 $ 3,802,681 Balance December 31, 2016 Allowance for loan losses - Ending balance: Individually evaluated for impairment $ 2,909 $ — $ — $ 155 $ — $ — $ 3,064 Collectively evaluated for impairment 24,087 3,420 2,890 1,149 2,023 932 34,501 Total $ 26,996 $ 3,420 $ 2,890 $ 1,304 $ 2,023 $ 932 $ 37,565 Loans - Ending balance: Individually evaluated for impairment $ 12,523 $ 430 $ 1,854 $ 1,903 $ 62 $ — $ 16,772 Collectively evaluated for impairment 1,620,191 544,378 348,294 192,639 240,698 155,420 3,101,620 Total $ 1,632,714 $ 544,808 $ 350,148 $ 194,542 $ 240,760 $ 155,420 $ 3,118,392 A summary of loans individually evaluated for impairment by category at March 31, 2017 and December 31, 2016 , is as follows: March 31, 2017 (in thousands) Unpaid Recorded Recorded Allowance Total Related Allowance Average Commercial and industrial $ 11,930 $ 40 $ 11,963 $ 12,003 $ 5,047 $ 12,017 Real estate: Commercial - investor owned 281 282 — 282 — 272 Commercial - owner occupied — — — — — — Construction and land development 1,575 1,658 341 1,999 140 1,813 Residential 62 62 — 62 — 62 Consumer and other — — — — — — Total $ 13,848 $ 2,042 $ 12,304 $ 14,346 $ 5,187 $ 14,164 December 31, 2016 (in thousands) Unpaid Recorded Recorded Allowance Total Related Allowance Average Commercial and industrial $ 12,341 $ 566 $ 11,791 $ 12,357 $ 2,909 $ 4,489 Real estate: Commercial - investor owned 525 435 — 435 — 668 Commercial - owner occupied 225 231 — 231 — 227 Construction and land development 1,904 1,947 359 2,306 155 1,918 Residential 62 62 — 62 — 64 Consumer and other — — — — — — Total $ 15,057 $ 3,241 $ 12,150 $ 15,391 $ 3,064 $ 7,366 The following table presents details for past due and impaired loans: Three months ended March 31, (in thousands) 2017 2016 Total interest income that would have been recognized under original terms $ 315 $ 148 Total cash received and recognized as interest income on non-accrual loans 23 6 Total interest income recognized on impaired loans 33 6 There were no loans over 90 days past due and still accruing interest at March 31, 2017 or December 31, 2016 . The recorded investment in impaired loans by category at March 31, 2017 and December 31, 2016 , is as follows: March 31, 2017 (in thousands) Non-accrual Restructured Loans over 90 days past due and still accruing interest Total Commercial and industrial $ 9,692 $ 2,311 $ — $ 12,003 Real estate: Commercial - investor owned 282 — — 282 Commercial - owner occupied — — — — Construction and land development 1,979 20 — 1,999 Residential 62 — — 62 Consumer and other — — — — Total $ 12,015 $ 2,331 $ — $ 14,346 December 31, 2016 (in thousands) Non-accrual Restructured Loans over 90 days past due and still accruing interest Total Commercial and industrial $ 10,046 $ 2,311 $ — $ 12,357 Real estate: Commercial - investor owned 435 — — 435 Commercial - owner occupied 231 — — 231 Construction and land development 2,286 20 — 2,306 Residential 62 — — 62 Consumer and other — — — — Total $ 13,060 $ 2,331 $ — $ 15,391 There were no restructured loans during the three months ended March 31, 2017 and 2016 . As of March 31, 2017 , the Company had $0.7 million specific reserves allocated to loans that have been restructured. There were no loans restructured that subsequently defaulted during the three months ended March 31, 2017 or 2016 . The aging of the recorded investment in past due loans by portfolio class and category at March 31, 2017 and December 31, 2016 is shown below. March 31, 2017 (in thousands) 30-89 Days Past Due 90 or More Past Due Total Past Due Current Total Commercial and industrial $ 10,624 $ — $ 10,624 $ 1,762,481 $ 1,773,105 Real estate: Commercial - investor owned 708 — 708 725,705 726,413 Commercial - owner occupied 529 — 529 479,752 480,281 Construction and land development — 1,214 1,214 287,128 288,342 Residential 285 — 285 356,130 356,415 Consumer and other 2 — 2 178,123 178,125 Total $ 12,148 $ 1,214 $ 13,362 $ 3,789,319 $ 3,802,681 December 31, 2016 (in thousands) 30-89 Days Past Due 90 or More Past Due Total Past Due Current Total Commercial and industrial $ 334 $ 171 $ 505 $ 1,632,209 $ 1,632,714 Real estate: Commercial - investor owned — 175 175 544,633 544,808 Commercial - owner occupied 212 225 437 349,711 350,148 Construction and land development 355 1,528 1,883 192,659 194,542 Residential 91 — 91 240,669 240,760 Consumer and other 7 — 7 155,413 155,420 Total $ 999 $ 2,099 $ 3,098 $ 3,115,294 $ 3,118,392 The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, payment experience, credit documentation, and current economic factors among other factors. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: • Grades 1 , 2 , and 3 – Includes loans to borrowers with a continuous record of strong earnings, sound balance sheet condition and capitalization, ample liquidity with solid cash flow, and whose management team has experience and depth within their industry. • Grade 4 – Includes loans to borrowers with positive trends in profitability, satisfactory capitalization and balance sheet condition, and sufficient liquidity and cash flow. • Grade 5 – Includes loans to borrowers that may display fluctuating trends in sales, profitability, capitalization, liquidity, and cash flow. • Grade 6 – Includes loans to borrowers where an adverse change or perceived weakness has occurred, but may be correctable in the near future. Alternatively, this rating category may also include circumstances where the borrower is starting to reverse a negative trend or condition, or has recently been upgraded from a 7 , 8 , or 9 rating. • Grade 7 – Watch credits are borrowers that have experienced financial setback of a nature that is not determined to be severe or influence ‘ongoing concern’ expectations. Although possible, no loss is anticipated, due to strong collateral and/or guarantor support. • Grade 8 – Substandard credits will include those borrowers characterized by significant losses and sustained downward trends in balance sheet condition, liquidity, and cash flow. Repayment reliance may have shifted to secondary sources. Collateral exposure may exist and additional reserves may be warranted. • Grade 9 – Doubtful credits include borrowers that may show deteriorating trends that are unlikely to be corrected. Collateral values may appear insufficient for full recovery, therefore requiring a partial charge-off, or debt renegotiation with the borrower. The borrower may have declared bankruptcy or bankruptcy is likely in the near term. All doubtful rated credits will be on non-accrual. The recorded investment by risk category of the loans by portfolio class and category at March 31, 2017 , which is based upon the most recent analysis performed, and December 31, 2016 is as follows: March 31, 2017 (in thousands) Pass (1-6) Watch (7) Substandard (8) Doubtful (9) Total Commercial and industrial $ 1,629,105 $ 75,946 $ 68,054 $ — $ 1,773,105 Real estate: Commercial - investor owned 706,958 15,777 3,678 — 726,413 Commercial - owner occupied 440,319 35,505 4,457 — 480,281 Construction and land development 283,410 2,841 2,091 — 288,342 Residential 347,118 5,051 4,246 — 356,415 Consumer and other 176,340 375 1,410 — 178,125 Total $ 3,583,250 $ 135,495 $ 83,936 $ — $ 3,802,681 December 31, 2016 (in thousands) Pass (1-6) Watch (7) Substandard (8) Doubtful (9) Total Commercial and industrial $ 1,499,114 $ 57,416 $ 76,184 $ — $ 1,632,714 Real estate: Commercial - investor owned 530,494 10,449 3,865 — 544,808 Commercial - owner occupied 306,658 39,249 4,241 — 350,148 Construction and land development 185,505 6,575 2,462 — 194,542 Residential 233,479 2,997 4,284 — 240,760 Consumer and other 153,984 — 1,436 — 155,420 Total $ 2,909,234 $ 116,686 $ 92,472 $ — $ 3,118,392 |