Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments | Note 6—Allowance for Loans and leases The following June 30, 2017 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Allowance for loan and lease losses Three months ended Beginning balance $ 2,047 $ 2,417 $ 417 $ 4,836 $ 331 $ 1,769 $ 11,817 Provisions 1,674 (453 ) (90 ) 1,637 13 734 3,515 Charge-offs (53 ) (129 ) — (784 ) — (767 ) (1,733 ) Recoveries — — — — — 370 370 Ending balance $ 3,668 $ 1,835 $ 327 $ 5,689 $ 344 $ 2,106 $ 13,969 Six months ended Beginning balance $ 1,945 $ 2,483 $ 742 $ 4,196 $ 334 $ 1,223 $ 10,923 Provisions 2,014 (452 ) (415 ) 2,492 10 1,757 5,406 Charge-offs (291 ) (196 ) — (999 ) — (1,537 ) (3,023 ) Recoveries — — — — — 663 663 Ending balance $ 3,668 $ 1,835 $ 327 $ 5,689 $ 344 $ 2,106 $ 13,969 Ending balance: Individually evaluated for impairment $ 396 $ 275 $ — $ 1,638 $ 326 $ — $ 2,635 Collectively evaluated for impairment 1,550 1,219 302 2,898 5 2,106 8,080 Loans acquired with deteriorated credit quality 1,722 341 25 1,153 13 — 3,254 Total allowance for loan and lease losses $ 3,668 $ 1,835 $ 327 $ 5,689 $ 344 $ 2,106 $ 13,969 June 30, 2017 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Loans and leases ending balance: Individually evaluated for impairment $ 8,675 $ 1,271 $ 565 $ 3,081 $ 327 $ — $ 13,919 Collectively evaluated for impairment 632,353 421,096 86,240 452,693 2,633 171,161 1,766,176 Loans acquired with deteriorated credit quality 188,161 162,349 5,830 12,400 555 — 369,295 Total loans and leases $ 829,189 $ 584,716 $ 92,635 $ 468,174 $ 3,515 $ 171,161 $ 2,149,390 June 30, 2016 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Allowance for loan and lease losses Three months ended Beginning balance $ 2,391 $ 2,950 $ 322 $ 1,349 $ 362 $ 529 $ 7,903 Provisions 1,759 (1,523 ) 167 195 6 548 1,152 Charge-offs (2,031 ) (124 ) — (72 ) (1 ) (581 ) (2,809 ) Recoveries — — — — — 244 244 Ending balance $ 2,119 $ 1,303 $ 489 $ 1,472 $ 367 $ 740 $ 6,490 Six months ended Beginning balance $ 2,280 $ 2,981 $ 232 $ 1,403 $ 357 $ 379 $ 7,632 Provisions 3,023 (1,021 ) 257 144 11 1,251 3,665 Charge-offs (3,184 ) (657 ) — (75 ) (1 ) (1,263 ) (5,180 ) Recoveries — — — — — 373 373 Ending balance $ 2,119 $ 1,303 $ 489 $ 1,472 $ 367 $ 740 $ 6,490 Ending balance: Individually evaluated for impairment $ 1,309 $ 352 $ 137 $ 157 $ 329 $ — $ 2,284 Collectively evaluated for impairment 503 393 304 665 3 740 2,608 Loans acquired with deteriorated credit quality 307 558 48 650 35 — 1,598 Total allowance for loan and lease losses $ 2,119 $ 1,303 $ 489 $ 1,472 $ 367 $ 740 $ 6,490 June 30, 2016 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Loans and leases ending balance: Individually evaluated for impairment $ 7,434 $ 3,277 $ 208 $ 157 $ 329 $ — $ 11,405 Collectively evaluated for impairment 333,580 431,915 68,858 215,155 631 139,297 1,189,436 Loans acquired with deteriorated credit quality 193,211 193,788 8,153 6,945 681 — 402,778 Total loans and leases $ 534,225 $ 628,980 $ 77,219 $ 222,257 $ 1,641 $ 139,297 $ 1,603,619 The Company increased the allowance for loan and lease losses by $2.2 million and $3.0 million for the three and six months ended June 30, 2017, respectively. The Company decreased the For acquired impaired loans, the Company increased the allowance for loan and lease losses by $1.5 million and $1.6 million for the three and six months ended June 30, 2017, respectively. The Company decreased the allowance for loan and lease losses for acquired impaired loans by $1.9 million and $1.7 million for the three and six months ended June 30, 2016, respectively. The following and June 30, 2017 Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded Commercial real estate $ 4,672 $ 5,183 $ — Residential real estate 800 1,780 — Construction, land development and other land 565 565 — With an allowance recorded Commercial real estate 4,003 4,003 396 Residential real estate 471 468 275 Commercial and industrial 3,081 3,351 1,638 Installment and other 327 310 326 Total impaired loans $ 13,919 $ 15,660 $ 2,635 December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded Commercial real estate $ 8,916 $ 9,502 $ — Residential real estate 804 1,999 — Commercial and Industrial 521 524 — With an allowance recorded Residential real estate 496 528 293 Commercial and industrial 861 869 396 Installment and other 328 361 328 Total impaired loans $ 11,926 $ 13,783 $ 1,017 The following table summarize the average recorded investment and interest income recognized for loans and leases considered impaired, which excludes acquired impaired loans, for the periods ended as follows: June 30, 2017 Average Recorded Investment Interest Income Recognized With no related allowance recorded Commercial real estate $ 4,573 $ 199 Residential real estate 578 24 Construction, land development and other land 364 15 Commercial and Industrial 1,119 43 With an allowance recorded Commercial real estate 667 — Residential real estate 240 3 Construction, land development and other land 87 — Commercial and industrial 2,047 263 Installment and other 159 9 Total impaired loans $ 9,834 $ 556 June 30, 2016 Average Recorded Investment Interest Income Recognized With no related allowance recorded Commercial real estate $ 2,283 $ 121 Residential real estate 1,478 56 With an allowance recorded Commercial real estate 3,356 — Residential real estate 379 5 Construction, land development and other land 249 — Commercial and industrial 196 1 Installment and other 396 9 Total impaired loans $ 8,337 $ 192 For purposes The following June 30, 2017 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Pass $ 584,245 $ 408,626 $ 74,333 $ 382,294 $ 2,629 $ 169,351 $ 1,621,478 Watch 36,781 8,407 9,777 66,240 3 302 121,510 Special Mention 7,452 3,113 2,130 1,534 1 348 14,578 Substandard 12,550 2,221 565 5,706 327 927 22,296 Doubtful — — — — — 233 233 Loss — — — — — — — Total $ 641,028 $ 422,367 $ 86,805 $ 455,774 $ 2,960 $ 171,161 $ 1,780,095 December 31, 2016 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Pass $ 536,499 $ 419,880 $ 129,732 $ 369,136 $ 2,052 $ 157,296 $ 1,614,595 Watch 38,707 10,885 2,897 52,872 4 324 105,689 Special Mention 5,377 3,116 1,158 1,258 1 512 11,422 Substandard 8,458 1,140 — 1,508 328 739 12,173 Doubtful — — — — — 95 95 Loss — — — — — — — Total $ 589,041 $ 435,021 $ 133,787 $ 424,774 $ 2,385 $ 158,966 $ 1,743,974 The following tables summarize contractual delinquency information for acquired non-impaired and originated loans and leases by category at June 30, 2017 and December 31, 2016: June 30, 2017 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days and Accruing Non- accrual Total Past Due Current Total Commercial real estate $ 172 $ 3,456 $ — $ 8,701 $ 12,329 $ 628,699 $ 641,028 Residential real estate 1,215 11 — 2,156 3,382 418,985 422,367 Construction, land development, and other land — — — 565 565 86,240 86,805 Commercial and industrial 249 967 — 2,860 4,076 451,698 455,774 Installment and other — — — 327 327 2,633 2,960 Lease financing receivables 1,256 183 — 687 2,126 169,035 171,161 Total $ 2,892 $ 4,617 $ — $ 15,296 $ 22,805 $ 1,757,290 $ 1,780,095 December 31, 2016 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days and Accruing Non- accrual Total Past Due Current Total Commercial real estate $ 2,944 $ 648 $ — $ 3,935 $ 7,527 $ 581,514 $ 589,041 Residential real estate 243 — — 1,118 1,361 433,660 435,021 Construction, land development, and other land 1,363 — — — 1,363 132,424 133,787 Commercial and industrial 6,066 374 — 958 7,398 417,376 424,774 Installment and other — — — 328 328 2,057 2,385 Lease financing receivables 2,070 390 — 445 2,905 156,061 158,966 Total $ 12,686 $ 1,412 $ — $ 6,784 $ 20,882 $ 1,723,092 $ 1,743,974 At June 30, 2017 and December 31, 2016, the June 30, 2017 and Loans modified three and six At June 30, 2017 and December 31, 2016, the six June |