| Loans, Net and Allowance for Loan Losses | Loans, Net and Allowance for Loan Losses Loans, net, at June 30, 2017 and December 31, 2016 , consisted of the following: June 30, December 31, 2017 2016 Commercial $ 981,200 $ 630,805 Real estate: Commercial 3,232,256 2,459,221 Commercial construction, land and land development 686,404 531,481 Residential 851,519 634,545 Single family interim construction 286,445 235,475 Agricultural 161,044 53,548 Consumer 40,359 27,530 Other 295 166 6,239,522 4,572,771 Deferred loan fees (2,663 ) (2,117 ) Allowance for loan losses (35,881 ) (31,591 ) $ 6,200,978 $ 4,539,063 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. Our commercial loan portfolio also 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, 2017 and December 31, 2016 , there were approximately $ 106,151 and $ 115,311 of exploration and production (E&P) energy loans outstanding, respectively. Additionally, with the acquisition of Carlile, the Company acquired a mortgage warehouse company, Goldome Financial, which provides mortgage warehouse lending to mortgage bankers across a broad geographic scale. Such loans are underwritten, in part, on approved investor takeout commitments. These loans have a very short duration ranging between 10 days and 15 days . In some cases, loans to larger mortgage originators may be financed for up to 60 days . These loans are reported as business loans since the loans are secured by notes receivable, not real estate. As of June 30, 2017, warehouse lines outstanding totaled $120,217 . 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. With the acquisition of Carlile as further explained in Note 10, Business Combination, the Company expanded into the State of Colorado, specifically along the Front Range area. As of June 30, 2017, loans in the Colorado region represented about 7% of the total portfolio. A large percentage of the Company’s portfolio consists of commercial and residential real estate loans. As of June 30, 2017 and December 31, 2016 , 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 and Colorado economies, specifically the Company’s lending area of north, central and southeast Texas and Colorado Front Range area, has continued to expand and recover at a moderate pace during 2017 due largely to improvement in the energy sector and a strong labor force. The Texas economy is the second largest in the nation. However, uncertainty exists in the potential effect of the Trump administration's impact on foreign trade policy, specifically related to the service and manufacturing industries and industrial real estate. The risk of loss associated with all segments of the portfolio could increase due to this impact. 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, 2017 and 2016 : 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, 2017 Balance at the beginning of period $ 8,005 $ 20,467 $ 2,828 $ 1,402 $ 201 $ 252 $ 34 $ 242 $ 33,431 Provision for loan losses 675 1,029 463 (15 ) 71 35 23 191 2,472 Charge-offs — — — — — (11 ) (55 ) — (66 ) Recoveries 20 1 1 — — 12 10 — 44 Balance at end of period $ 8,700 $ 21,497 $ 3,292 $ 1,387 $ 272 $ 288 $ 12 $ 433 $ 35,881 Six months ended June 30, 2017 Balance at the beginning of period $ 8,593 $ 18,399 $ 2,760 $ 1,301 $ 207 $ 242 $ 29 $ 60 $ 31,591 Provision for loan losses 85 3,077 530 220 65 99 46 373 4,495 Charge-offs — — — (134 ) — (67 ) (77 ) — (278 ) Recoveries 22 21 2 — — 14 14 — 73 Balance at end of period $ 8,700 $ 21,497 $ 3,292 $ 1,387 $ 272 $ 288 $ 12 $ 433 $ 35,881 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 The following table details the amount of the allowance for loan losses and recorded investment in loans by class as of June 30, 2017 and December 31, 2016 : Commercial Commercial Real Estate, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Unallocated Total June 30, 2017 Allowance for losses: Individually evaluated for impairment $ 1,000 $ — $ — $ — $ — $ 94 $ — $ — $ 1,094 Collectively evaluated for impairment 7,700 21,497 3,292 1,387 272 194 12 433 34,787 Loans acquired with deteriorated credit quality — — — — — — — — — Ending balance $ 8,700 $ 21,497 $ 3,292 $ 1,387 $ 272 $ 288 $ 12 $ 433 $ 35,881 Loans: Individually evaluated for impairment $ 8,181 $ 2,752 $ 3,276 $ — $ — $ 237 $ — $ — $ 14,446 Collectively evaluated for impairment 960,441 3,860,872 843,969 286,445 155,088 40,067 295 — 6,147,177 Acquired with deteriorated credit quality 12,578 55,036 4,274 — 5,956 55 — — 77,899 Ending balance $ 981,200 $ 3,918,660 $ 851,519 $ 286,445 $ 161,044 $ 40,359 $ 295 $ — $ 6,239,522 December 31, 2016 Allowance for losses: Individually evaluated for impairment $ 3 $ 4 $ — $ 84 $ — $ 94 $ — $ — $ 185 Collectively evaluated for impairment 8,590 18,395 2,760 1,217 207 148 29 60 31,406 Loans acquired with deteriorated credit quality — — — — — — — — — Ending balance $ 8,593 $ 18,399 $ 2,760 $ 1,301 $ 207 $ 242 $ 29 $ 60 $ 31,591 Loans: Individually evaluated for impairment $ 7,720 $ 7,089 $ 1,889 $ 884 $ — $ 279 $ — $ — $ 17,861 Collectively evaluated for impairment 620,665 2,953,333 630,689 234,591 53,548 27,240 166 — 4,520,232 Acquired with deteriorated credit quality 2,420 30,280 1,967 — — 11 — — 34,678 Ending balance $ 630,805 $ 2,990,702 $ 634,545 $ 235,475 $ 53,548 $ 27,530 $ 166 $ — $ 4,572,771 Nonperforming loans by loan class (excluding loans acquired with deteriorated credit quality) at June 30, 2017 and December 31, 2016 , 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, 2017 Nonaccrual loans $ 8,181 $ 1,665 $ 2,319 $ — $ — $ 237 $ — $ 12,402 Loans past due 90 days and still accruing 11 — — — — — — 11 Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) — 1,087 957 — — — — 2,044 $ 8,192 $ 2,752 $ 3,276 $ — $ — $ 237 $ — $ 14,457 December 31, 2016 Nonaccrual loans $ 7,718 $ 5,885 $ 866 $ 884 $ — $ 273 $ — $ 15,626 Loans past due 90 days and still accruing — — — — — — — — Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) 1 1,204 1,011 — — — — 2,216 $ 7,719 $ 7,089 $ 1,877 $ 884 $ — $ 273 $ — $ 17,842 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 (excluding loans acquired with deteriorated credit quality) at June 30, 2017 and December 31, 2016 , 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, 2017 Recorded investment in impaired loans: Impaired loans with an allowance for loan losses $ 6,502 $ — $ — $ — $ — $ 202 $ — $ 6,704 Impaired loans with no allowance for loan losses 1,679 2,752 3,276 — — 35 — 7,742 Total $ 8,181 $ 2,752 $ 3,276 $ — $ — $ 237 $ — $ 14,446 Unpaid principal balance of impaired loans $ 11,304 $ 2,769 $ 3,325 $ — $ — $ 246 $ — $ 17,644 Allowance for loan losses on impaired loans $ 1,000 $ — $ — $ — $ — $ 94 $ — $ 1,094 December 31, 2016 Recorded investment in impaired loans: Impaired loans with an allowance for loan losses $ 8 $ 78 $ — $ 168 $ — $ 209 $ — $ 463 Impaired loans with no allowance for loan losses 7,712 7,011 1,889 716 — 70 — 17,398 Total $ 7,720 $ 7,089 $ 1,889 $ 884 $ — $ 279 $ — $ 17,861 Unpaid principal balance of impaired loans $ 10,844 $ 7,133 $ 2,087 $ 884 $ — $ 291 $ — $ 21,239 Allowance for loan losses on impaired loans $ 3 $ 4 $ — $ 84 $ — $ 94 $ — $ 185 For the three months ended June 30, 2017 Average recorded investment in impaired loans $ 8,189 $ 2,798 $ 2,658 $ — $ — $ 251 $ — $ 13,896 Interest income recognized on impaired loans $ 3 $ 15 $ 12 $ — $ — $ 3 $ — $ 33 For the six months ended June 30, 2017 Average recorded investment in impaired loans $ 8,032 $ 4,228 $ 2,401 $ 295 $ — $ 260 $ — $ 15,216 Interest income recognized on impaired loans $ 4 $ 412 $ 24 $ — $ — $ 5 $ — $ 445 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 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 $2,730 and $2,425 as of June 30, 2017 and December 31, 2016 . Following is a summary of loans modified under troubled debt restructurings during the three and six months ended June 30, 2017 and 2016 : Commercial Commercial Residential Single-Family Agricultural Consumer Other Total Troubled debt restructurings during the three months ended June 30, 2017 Number of contracts — — 1 — — 1 — 2 Pre-restructuring outstanding recorded investment $ — $ — $ 465 $ — $ — $ 22 $ — $ 487 Post-restructuring outstanding recorded investment $ — $ — $ 465 $ — $ — $ 22 $ — $ 487 Troubled debt restructurings during the six months ended June 30, 2017 Number of contracts — — 1 — — 1 — 2 Pre-restructuring outstanding recorded investment $ — $ — $ 465 $ — $ — $ 22 $ — $ 487 Post-restructuring outstanding recorded investment $ — $ — $ 465 $ — $ — $ 22 $ — $ 487 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 At June 30, 2017 and 2016 , 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, 2017 and 2016, respectively. At June 30, 2017 and 2016 , 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, 2017 and December 31, 2016 : Loans 30-89 Days Past Due Loans 90 or More Past Due Total Past Due Loans Current Loans Total Loans June 30, 2017 Commercial $ 4,316 $ 8,175 $ 12,491 $ 956,131 $ 968,622 Commercial real estate, land and land development 3,611 1,631 5,242 3,858,382 3,863,624 Residential real estate 1,385 1,405 2,790 844,455 847,245 Single-family interim construction — — — 286,445 286,445 Agricultural 325 — 325 154,763 155,088 Consumer 721 25 746 39,558 40,304 Other — — — 295 295 10,358 11,236 21,594 6,140,029 6,161,623 Acquired with deteriorated credit quality 5,008 5,459 10,467 67,432 77,899 $ 15,366 $ 16,695 $ 32,061 $ 6,207,461 $ 6,239,522 December 31, 2016 Commercial $ 226 $ 7,711 $ 7,937 $ 620,448 $ 628,385 Commercial real estate, land and land development 151 6,752 6,903 2,953,519 2,960,422 Residential real estate 846 561 1,407 631,171 632,578 Single-family interim construction 1,062 — 1,062 234,413 235,475 Agricultural 10 — 10 53,538 53,548 Consumer 154 52 206 27,313 27,519 Other — — — 166 166 2,449 15,076 17,525 4,520,568 4,538,093 Acquired with deteriorated credit quality 181 910 1,091 33,587 34,678 $ 2,630 $ 15,986 $ 18,616 $ 4,554,155 $ 4,572,771 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, 2017 and December 31, 2016 , is as follows: Pass Pass/ Watch Special Mention Substandard Doubtful Total June 30, 2017 Commercial $ 887,313 $ 44,842 $ 17,152 $ 31,893 $ — $ 981,200 Commercial real estate, construction, land and land development 3,827,899 56,367 14,910 19,484 — 3,918,660 Residential real estate 842,240 2,113 1,210 5,956 — 851,519 Single-family interim construction 285,222 1,223 — — — 286,445 Agricultural 132,638 8,983 14,942 4,481 — 161,044 Consumer 40,036 19 10 294 — 40,359 Other 295 — — — — 295 $ 6,015,643 $ 113,547 $ 48,224 $ 62,108 $ — $ 6,239,522 December 31, 2016 Commercial $ 555,342 $ 31,954 $ 16,734 $ 26,775 $ — $ 630,805 Commercial real estate, construction, land and land development 2,972,732 5,426 5,148 7,396 — 2,990,702 Residential real estate 629,081 1,897 370 3,197 — 634,545 Single-family interim construction 233,800 791 — 884 — 235,475 Agricultural 52,724 569 255 — — 53,548 Consumer 27,215 12 3 300 — 27,530 Other 166 — — — — 166 $ 4,471,060 $ 40,649 $ 22,510 $ 38,552 $ — $ 4,572,771 The Company has acquired certain loans which experienced credit deterioration since origination (purchased credit impaired (PCI) loans). The Company has included PCI loans in the above grading tables. The following provides additional detail on the grades applied to those loans at June 30, 2017 and December 31, 2016 : Pass Pass/ Special Mention Substandard Doubtful Total June 30, 2017 $ 37,334 $ 6,933 $ 4,098 $ 29,534 $ — $ 77,899 December 31, 2016 30,498 1,237 1,069 1,874 — 34,678 PCI loans may remain on accrual status to the extent the company can reasonably estimate the amount and timing of expected future cash flows. At June 30, 2017 and December 31, 2016 , non-accrual PCI loans were $8,845 and $960 , respectively. Accretion on PCI loans is based on estimated future cash flows, regardless of contractual maturity. 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 2017 : Acquisition Date April 1, 2017 Carlile Bancshares, Inc.* Outstanding balance $ 58,790 Nonaccretable difference (11,630 ) Accretable yield (944 ) Carrying amount $ 46,216 * Amounts represent provisional estimates and are subject to final acquisition accounting adjustments. The carrying amount of all acquired PCI loans included in the consolidated balance sheet and the related outstanding balance at June 30, 2017 and December 31, 2016 were as follows: June 30, 2017 December 31, 2016 Outstanding balance $ 94,074 $ 39,442 Carrying amount 77,899 34,678 There was no allocation established in the allowance for loan losses relating to PCI loans at June 30, 2017 or December 31, 2016 . The changes in accretable yield during the six months ended June 30, 2017 and 2016 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, 2017 2016 Balance at January 1, $ 1,526 $ 2,380 Additions 944 — Accretion (187 ) (653 ) Transfers from nonaccretable — — Balance at June 30, $ 2,283 $ 1,727 |
