| Loans, Net and Allowance for Loan Losses | Loans, Net and Allowance for Loan Losses Loans, net at June 30, 2016 and December 31, 2015, consisted of the following: June 30, December 31, 2016 2015 Commercial $ 636,557 $ 731,818 Real estate: Commercial 2,229,913 1,949,734 Commercial construction, land and land development 444,738 419,611 Residential 626,245 607,990 Single family interim construction 232,658 187,984 Agricultural 48,976 50,178 Consumer 32,233 41,966 Other 137 124 4,251,457 3,989,405 Deferred loan fees (1,992 ) (1,553 ) Allowance for loan losses (30,916 ) (27,043 ) $ 4,218,549 $ 3,960,809 The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by providing management with frequent reports related to loan production, loan quality, concentrations of credit, loan delinquencies and non-performing and potential problem loans. Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. The Company’s management examines current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. These cash flows, however, may not be as expected and the value of collateral securing the loans may fluctuate. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short term loans may be made on an unsecured basis. Additionally, our commercial loan portfolio includes loans made to customers in the energy industry, which is a complex, technical and cyclical industry. Experienced bankers with specialized energy lending experience originate our energy loans. Companies in this industry produce, extract, develop, exploit and explore for oil and natural gas. Loans are primarily collateralized with proven producing oil and gas reserves based on a technical evaluation of these reserves. At June 30, 2016 and December 31, 2015, there were approximately $ 108.9 million and $ 182.5 million of exploration and production (E&P) energy loans outstanding, respectively. Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts, and the repayment of these loans is generally largely dependent on the successful operation of the property or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type and geographic location. Management monitors the diversification of the portfolio on a quarterly basis by type and geographic location. Management also tracks the level of owner occupied property versus non owner occupied property. Land and commercial land development loans are underwritten using feasibility studies, independent appraisal reviews and financial analysis of the developers or property owners. Generally, borrowers must have a proven track record of success. Commercial construction loans are generally based upon estimates of cost and value of the completed project. These estimates may not be accurate. Commercial construction loans often involve the disbursement of substantial funds with the repayment dependent on the success of the ultimate project. Sources of repayment for these loans may be pre-committed permanent financing or sale of the developed property. The loans in this portfolio are geographically diverse and due to the increased risk are monitored closely by management and the board of directors on a quarterly basis. Residential real estate and single family interim construction loans are underwritten primarily based on borrowers’ credit scores, documented income and minimum collateral values. Relatively small loan amounts are spread across many individual borrowers, which minimizes risk in the residential portfolio. In addition, management evaluates trends in past dues and current economic factors on a regular basis. Agricultural loans are collateralized by real estate and/or agricultural-related assets. Agricultural real estate loans are primarily comprised of loans for the purchase of farmland. Loan-to-value ratios on loans secured by farmland generally do not exceed 80% and have amortization periods limited to twenty years. Agricultural non-real estate loans are generally comprised of term loans to fund the purchase of equipment, livestock and seasonal operating lines to grain farmers to plant and harvest corn and soybeans. Specific underwriting standards have been established for agricultural-related loans, including the establishment of projections for each operating year based on industry developed estimates of farm input costs and expected commodity yields and prices. Operating lines are typically written for one year and secured by the crop and other farm assets as considered necessary. Agricultural loans carry significant credit risks as they involve larger balances concentrated with single borrowers or groups of related borrowers. In addition, repayment of such loans depends on the successful operation or management of the farm property securing the loan or for which an operating loan is utilized. Farming operations may be affected by adverse weather conditions such as drought, hail or floods that can severely limit crop yields. Consumer loans represent less than 1% of the outstanding total loan portfolio. Collateral consists primarily of automobiles and other personal assets. Credit score analysis is used to supplement the underwriting process. Most of the Company’s lending activity occurs within the State of Texas, primarily in the north, central and southeast Texas regions. A large percentage of the Company’s portfolio consists of commercial and residential real estate loans. As of June 30, 2016 and December 31, 2015 , there were no concentrations of loans related to a single industry in excess of 10% of total loans. The allowance for loan losses is an amount that management believes will be adequate to absorb estimated losses relating to specifically identified loans, as well as probable credit losses inherent in the balance of the loan portfolio. The allowance is derived from the following two components: 1) allowances established on individual impaired loans, which are based on a review of the individual characteristics of each loan, including the customer’s ability to repay the loan, the underlying collateral values, and the industry in which the customer operates, and 2) allowances based on actual historical loss experience for the last three years for similar types of loans in the Company’s loan portfolio adjusted for primarily changes in the lending policies and procedures; collection, charge-off and recovery practices; nature and volume of the loan portfolio; change in value of underlying collateral; volume and severity of nonperforming loans; existence and effect of any concentrations of credit and the level of such concentrations and current, national and local economic and business conditions. This second component also includes an unallocated allowance to cover uncertainties that could affect management’s estimate of probable losses. The unallocated allowance reflects the imprecision inherent in the underlying assumptions used in the methodologies for estimating this component. The Company’s management continually evaluates the allowance for loan losses determined from the allowances established on individual loans and the amounts determined from historical loss percentages adjusted for the qualitative factors above. Should any of the factors considered by management change, the Company’s estimate of loan losses could also change and would affect the level of future provision expense. While the calculation of the allowance for loan losses utilizes management’s best judgment and all the information available, the adequacy of the allowance for loan losses is dependent on a variety of factors beyond the Company’s control, including, among other things, the performance of the entire loan portfolio, the economy, changes in interest rates and the view of regulatory authorities towards loan classifications. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses, and may require the Bank to make additions to the allowance based on their judgment about information available to them at the time of their examinations. Loans requiring an allocated loan loss provision are generally identified at the servicing officer level based on review of weekly past due reports and/or the loan officer’s communication with borrowers. In addition, past due loans are discussed at weekly officer loan committee meetings to determine if classification is warranted. The Company’s credit department has implemented an internal risk based loan review process to identity potential internally classified loans that supplements the annual independent external loan review. The external review generally covers all loans greater than $2.9 million annually. These reviews include analysis of borrower’s financial condition, payment histories and collateral values to determine if a loan should be internally classified. Generally, once classified, an impaired loan analysis is completed by the credit department to determine if the loan is impaired and the amount of allocated allowance required. The Texas economy, specifically the Company’s lending area of north, central and southeast Texas, has generally performed better than certain other parts of the country. However, the ongoing volatility in oil prices has the potential to have a negative impact on the Texas economy, specifically in Houston. The risk of loss associated with all segments of the portfolio could increase due to this impact. The Company increased its allowance for loan losses during the first quarter 2016 in consideration of this risk to the energy portfolio. Due to the stabilization of commodity prices and reductions to the energy portfolio during the second quarter 2016, no additional allocations were warranted. The economy and other risk factors are minimized by the Company’s underwriting standards, which include the following principles: 1) financial strength of the borrower including strong earnings, high net worth, significant liquidity and acceptable debt to worth ratio, 2) managerial business competence, 3) ability to repay, 4) loan to value, 5) projected cash flow and 6) guarantor financial statements as applicable. The following is a summary of the activity in the allowance for loan losses by loan class for the three and six months ended June 30, 2016 and 2015 : Commercial Commercial Real Estate, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Unallocated Total Three months ended June 30, 2016 Balance at the beginning of period $ 12,173 $ 14,001 $ 2,473 $ 989 $ 187 $ 162 $ 16 $ (17 ) $ 29,984 Provision for loan losses 374 1,491 52 132 (12 ) 7 23 56 2,123 Charge-offs (1,191 ) — — — — (1 ) (22 ) — (1,214 ) Recoveries 1 — 8 — — 3 11 — 23 Balance at end of period $ 11,357 $ 15,492 $ 2,533 $ 1,121 $ 175 $ 171 $ 28 $ 39 $ 30,916 Six months ended June 30, 2016 Balance at the beginning of period $ 10,573 $ 13,007 $ 2,339 $ 769 $ 215 $ 164 $ — $ (24 ) $ 27,043 Provision for loan losses 1,966 2,537 185 352 (40 ) 4 53 63 5,120 Charge-offs (1,191 ) (54 ) — — — (2 ) (45 ) — (1,292 ) Recoveries 9 2 9 — — 5 20 — 45 Balance at end of period $ 11,357 $ 15,492 $ 2,533 $ 1,121 $ 175 $ 171 $ 28 $ 39 $ 30,916 Three months ended June 30, 2015 Balance at the beginning of period $ 6,078 $ 10,654 $ 2,194 $ 734 $ 238 $ 156 $ — $ 173 $ 20,227 Provision for loan losses 658 1,054 122 4 (4 ) 57 — (232 ) 1,659 Charge-offs (106 ) — — — — (41 ) — — (147 ) Recoveries 2 12 2 — — 9 — — 25 Balance at end of period $ 6,632 $ 11,720 $ 2,318 $ 738 $ 234 $ 181 $ — $ (59 ) $ 21,764 Six months ended June 30, 2015 Balance at the beginning of period $ 5,051 $ 10,110 $ 2,205 $ 669 $ 246 $ 146 $ — $ 125 $ 18,552 Provision for loan losses 1,681 1,580 109 69 (12 ) 86 — (184 ) 3,329 Charge-offs (106 ) — — — — (77 ) — — (183 ) Recoveries 6 30 4 — — 26 — — 66 Balance at end of period $ 6,632 $ 11,720 $ 2,318 $ 738 $ 234 $ 181 $ — $ (59 ) $ 21,764 The following table details the amount of the allowance for loan losses and recorded investment in loans by class as of June 30, 2016 and December 31, 2015: Commercial Commercial Real Estate, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Unallocated Total June 30, 2016 Allowance for losses: Individually evaluated for impairment $ 3,587 $ 4 $ — $ — $ — $ — $ — $ — $ 3,591 Collectively evaluated for impairment 7,770 15,488 2,533 1,121 175 171 28 39 27,325 Loans acquired with deteriorated credit quality — — — — — — — — — Ending balance $ 11,357 $ 15,492 $ 2,533 $ 1,121 $ 175 $ 171 $ 28 $ 39 $ 30,916 Loans: Individually evaluated for impairment $ 11,959 $ 1,392 $ 3,703 $ — $ — $ 64 $ — $ — $ 17,118 Collectively evaluated for impairment 621,716 2,641,515 620,529 232,658 48,976 32,152 137 — 4,197,683 Acquired with deteriorated credit quality 2,882 31,744 2,013 — — 17 — — 36,656 Ending balance $ 636,557 $ 2,674,651 $ 626,245 $ 232,658 $ 48,976 $ 32,233 $ 137 $ — $ 4,251,457 December 31, 2015 Allowance for losses: Individually evaluated for impairment $ 3,085 $ 116 $ — $ — $ — $ 2 $ — $ — $ 3,203 Collectively evaluated for impairment 7,488 12,891 2,339 769 215 162 — (24 ) 23,840 Loans acquired with deteriorated credit quality — — — — — — — — — Ending balance $ 10,573 $ 13,007 $ 2,339 $ 769 $ 215 $ 164 $ — $ (24 ) $ 27,043 Loans: Individually evaluated for impairment $ 7,382 $ 4,671 $ 3,136 $ — $ 170 $ 111 $ — $ — $ 15,470 Collectively evaluated for impairment 720,732 2,321,209 602,206 187,984 50,008 41,835 124 — 3,924,098 Acquired with deteriorated credit quality 3,704 43,465 2,648 — — 20 — — 49,837 Ending balance $ 731,818 $ 2,369,345 $ 607,990 $ 187,984 $ 50,178 $ 41,966 $ 124 $ — $ 3,989,405 Nonperforming loans by loan class at June 30, 2016 and December 31, 2015, are summarized as follows: Commercial Commercial Real Estate, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Total June 30, 2016 Nonaccrual loans $ 11,950 $ 56 $ 1,141 $ — $ — $ 82 $ — $ 13,229 Loans past due 90 days and still accruing 7 — — — — — — 7 Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) 9 1,336 2,597 — — — — 3,942 $ 11,966 $ 1,392 $ 3,738 $ — $ — $ 82 $ — $ 17,178 December 31, 2015 Nonaccrual loans $ 7,366 $ 591 $ 552 $ — $ 170 $ 111 $ — $ 8,790 Loans past due 90 days and still accruing — — — — — — — — Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) 16 3,480 2,574 — — — — 6,070 $ 7,382 $ 4,071 $ 3,126 $ — $ 170 $ 111 $ — $ 14,860 The accrual of interest is discontinued on a loan when management believes after considering collection efforts and other factors that the borrower's financial condition is such that collection of interest is doubtful. All interest accrued but not collected for loans that are placed on nonaccrual status or charged-off is reversed against interest income. Cash collections on nonaccrual loans are generally credited to the loan receivable balance, and no interest income is recognized on those loans until the principal balance has been collected. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Impaired loans are those loans where it is probable that all amounts due will not be collected according to contractual terms of the loan agreement. The Company has identified these loans through its normal loan review procedures. Impaired loans are measured based on 1) the present value of expected future cash flows discounted at the loans effective interest rate; 2) the loan's observable market price; or 3) the fair value of collateral if the loan is collateral dependent. Substantially all of the Company’s impaired loans are measured at the fair value of the collateral. In limited cases, the Company may use the other methods to determine the level of impairment of a loan if such loan is not collateral dependent. All commercial, real estate, agricultural loans and troubled debt restructurings are considered for individual impairment analysis. Smaller balance consumer loans are collectively evaluated for impairment. Impaired loans by loan class at June 30, 2016 and December 31, 2015, are summarized as follows: Commercial Commercial Real Estate, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Total June 30, 2016 Recorded investment in impaired loans: Impaired loans with an allowance for loan losses $ 6,777 $ 78 $ — $ — $ — $ — $ — $ 6,855 Impaired loans with no allowance for loan losses 5,182 1,314 3,703 — — 64 — 10,263 Total $ 11,959 $ 1,392 $ 3,703 $ — $ — $ 64 $ — $ 17,118 Unpaid principal balance of impaired loans $ 13,488 $ 1,436 $ 3,723 $ — $ — $ 80 $ — $ 18,727 Allowance for loan losses on impaired loans $ 3,587 $ 4 $ — $ — $ — $ — $ — $ 3,591 December 31, 2015 Recorded investment in impaired loans: Impaired loans with an allowance for loan losses $ 7,221 $ 1,930 $ — $ — $ — $ 5 $ — $ 9,156 Impaired loans with no allowance for loan losses 161 2,741 3,136 — 170 106 — 6,314 Total $ 7,382 $ 4,671 $ 3,136 $ — $ 170 $ 111 $ — $ 15,470 Unpaid principal balance of impaired loans $ 7,520 $ 4,936 $ 3,204 $ — $ 172 $ 133 $ — $ 15,965 Allowance for loan losses on impaired loans $ 3,085 $ 116 $ — $ — $ — $ 2 $ — $ 3,203 For the three months ended June 30, 2016 Average recorded investment in impaired loans $ 17,966 $ 1,789 $ 3,441 $ — $ — $ 70 $ — $ 23,266 Interest income recognized on impaired loans $ — $ 13 $ 32 $ — $ — $ — $ — $ 45 For the six months ended June 30, 2016 Average recorded investment in impaired loans $ 14,438 $ 2,750 $ 3,339 $ — $ 57 $ 84 $ — $ 20,668 Interest income recognized on impaired loans $ — $ 38 $ 72 $ — $ — $ — $ — $ 110 For the three months ended June 30, 2015 Average recorded investment in impaired loans $ 5,788 $ 6,389 $ 3,248 $ — $ — $ 79 $ — $ 15,504 Interest income recognized on impaired loans $ 22 $ 97 $ 63 $ — $ — $ — $ — $ 182 For the six months ended June 30, 2015 Average recorded investment in impaired loans $ 4,352 $ 6,515 $ 3,294 $ — $ — $ 78 $ — $ 14,239 Interest income recognized on impaired loans $ 43 $ 192 $ 93 $ — $ — $ 1 $ — $ 329 Certain impaired loans have adequate collateral and do not require a related allowance for loan loss. The Company will charge off that portion of any loan which management considers a loss. Commercial and real estate loans are generally considered for charge-off when exposure beyond collateral coverage is apparent and when no further collection of the loss portion is anticipated based on the borrower’s financial condition. The restructuring of a loan is considered a “troubled debt restructuring” if both 1) the borrower is experiencing financial difficulties and 2) the creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, extending amortization and other actions intended to minimize potential losses. A “troubled debt restructured” loan is identified as impaired and measured for credit impairment as of each reporting period in accordance with the guidance in Accounting Standards Codification (ASC) 310-10-35. Modifications primarily relate to extending the amortization periods of the loans and interest rate concessions. The majority of these loans were identified as impaired prior to restructuring; therefore, the modifications did not materially impact the Company’s determination of the allowance for loan losses. The recorded investment in troubled debt restructurings, including those on nonaccrual, was $4,052 and $6,691 as of June 30, 2016 and December 31, 2015. Following is a summary of loans modified under troubled debt restructurings during the three and six months ended June 30, 2016 and 2015 : . Commercial Commercial Real Estate, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Total Troubled debt restructurings during the three months ended June 30, 2016 Number of contracts 1 — — — — — — 1 Pre-restructuring outstanding recorded investment $ 24 $ — $ — $ — $ — $ — $ — $ 24 Post-restructuring outstanding recorded investment $ 24 $ — $ — $ — $ — $ — $ — $ 24 Troubled debt restructurings during the six months ended June 30, 2016 Number of contracts 1 — — — — — — 1 Pre-restructuring outstanding recorded investment $ 24 $ — $ — $ — $ — $ — $ — $ 24 Post-restructuring outstanding recorded investment $ 24 $ — $ — $ — $ — $ — $ — $ 24 Troubled debt restructurings during the three months ended June 30, 2015 Number of contracts — — — — — — — — Pre-restructuring outstanding recorded investment $ — $ — $ — $ — $ — $ — $ — $ — Post-restructuring outstanding recorded investment $ — $ — $ — $ — $ — $ — $ — $ — Troubled debt restructurings during the six months ended June 30, 2015 Number of contracts — — — — — — — — Pre-restructuring outstanding recorded investment $ — $ — $ — $ — $ — $ — $ — $ — Post-restructuring outstanding recorded investment $ — $ — $ — $ — $ — $ — $ — $ — At June 30, 2016 and 2015, there were no loans modified under troubled debt restructurings during the previous twelve month period that subsequently defaulted during the three and six months ended June 30, 2016 and 2015, respectively. At June 30, 2016 and 2015, the Company had no commitments to lend additional funds to any borrowers with loans whose terms have been modified under troubled debt restructurings. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. The following table presents information regarding the aging of past due loans by loan class as of June 30, 2016 and December 31, 2015: Loans 30-89 Days Past Due Loans 90 or More Past Due Total Past Due Loans Current Loans Total Loans June 30, 2016 Commercial $ 183 $ 8,949 $ 9,132 $ 627,425 $ 636,557 Commercial real estate, land and land development 531 41 572 2,674,079 2,674,651 Residential real estate 1,986 328 2,314 623,931 626,245 Single-family interim construction 1,243 — 1,243 231,415 232,658 Agricultural 252 — 252 48,724 48,976 Consumer 88 47 135 32,098 32,233 Other — — — 137 137 $ 4,283 $ 9,365 $ 13,648 $ 4,237,809 $ 4,251,457 December 31, 2015 Commercial $ 2,740 $ 7,220 $ 9,960 $ 721,858 $ 731,818 Commercial real estate, land and land development 2,059 — 2,059 2,367,286 2,369,345 Residential real estate 1,456 330 1,786 606,204 607,990 Single-family interim construction 503 — 503 187,481 187,984 Agricultural 89 170 259 49,919 50,178 Consumer 290 26 316 41,650 41,966 Other — — — 124 124 $ 7,137 $ 7,746 $ 14,883 $ 3,974,522 $ 3,989,405 The Company’s internal classified report is segregated into the following categories: 1) Pass/Watch, 2) Special Mention, 3) Substandard and 4) Doubtful. The loans placed in the Pass/Watch category reflect the Company’s opinion that the loans reflect potential weakness that requires monitoring on a more frequent basis. The loans in the Special Mention category reflect the Company’s opinion that the credit contains weaknesses which represent a greater degree of risk and warrant extra attention. These loans are reviewed monthly by officers and senior management to determine if a change in category is warranted. The loans placed in the Substandard category are considered to be potentially inadequately protected by the current debt service capacity of the borrower and/or the pledged collateral. These credits, even if apparently protected by collateral value, have shown weakness related to adverse financial, managerial, economic, market or political conditions, which may jeopardize repayment of principal and interest. There is possibility that some future loss could be sustained by the Company if such weakness is not corrected. The Doubtful category includes loans that are in default or principal exposure is probable. Substandard and Doubtful loans are individually evaluated to determine if they should be classified as impaired and an allowance is allocated if deemed necessary under ASC 310-10. The loans that are not impaired are included with the remaining “pass” credits in determining the portion of the allowance for loan loss based on historical loss experience and other qualitative factors. The portfolio is segmented into categories including: commercial loans, consumer loans, commercial real estate loans, residential real estate loans and agricultural loans. The adjusted historical loss percentage is applied to each category. Each category is then added together to determine the allowance allocated under ASC 450-20. A summary of loans by credit quality indicator by class as of June 30, 2016 and December 31, 2015 , is as follows: Pass Pass/ Watch Special Mention Substandard Doubtful Total June 30, 2016 Commercial $ 561,126 $ 35,057 $ 7,590 $ 32,784 $ — $ 636,557 Commercial real estate, construction, land and land development 2,659,724 10,024 3,499 1,404 — 2,674,651 Residential real estate 619,256 1,688 376 4,925 — 626,245 Single-family interim construction 232,658 — — — — 232,658 Agricultural 48,925 51 — — — 48,976 Consumer 32,085 26 19 103 — 32,233 Other 137 — — — — 137 $ 4,153,911 $ 46,846 $ 11,484 $ 39,216 $ — $ 4,251,457 December 31, 2015 Commercial $ 616,149 $ 46,607 $ 44,469 $ 24,593 $ — $ 731,818 Commercial real estate, construction, land and land development 2,343,883 18,463 3,341 3,658 — 2,369,345 Residential real estate 599,937 2,150 982 4,921 — 607,990 Single-family interim construction 187,984 — — — — 187,984 Agricultural 48,185 66 1,757 170 — 50,178 Consumer 41,601 57 32 276 — 41,966 Other 124 — — — — 124 $ 3,837,863 $ 67,343 $ 50,581 $ 33,618 $ — $ 3,989,405 The Company has acquired certain loans which experienced credit deterioration since origination (purchased credit impaired (PCI) loans). Accretion on PCI loans is based on estimated future cash flows, regardless of contractual maturity. No additional PCI loans were acquired during the six months ended June 30, 2016. The following table summarizes the outstanding balance and related carrying amount of purchased credit impaired loans as of the respective acquisition date for the acquisition occurring in 2015: Acquisition Date November 1, 2015 Grand Bank Outstanding balance $ 3,548 Nonaccretable difference (593 ) Accretable yield — Carrying amount $ 2,955 The carrying amount of all acquired PCI loans included in the consolidated balance sheet and the related outstanding balance at June 30, 2016 and December 31, 2015, were as follows: June 30, 2016 December 31, 2015 Outstanding balance $ 41,799 $ 57,178 Carrying amount 36,656 49,837 There was no allocation established in the allowance for loan losses relating to PCI loans at June 30, 2016 or December 31, 2015. The changes in accretable yield during the six months ended June 30, 2016 and 2015 in regard to loans transferred at acquisition for which it was probable that all contractually required payments would not be collected are presented in the table below. For the Six Months Ended June 30, 2016 2015 Balance at January 1, $ 2,380 $ 2,546 Additions — — Accretion (653 ) (460 ) Transfers from nonaccretable — 748 Balance at June 30, $ 1,727 $ 2,834 |
