Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments | Note 6—Allowance for Loans and leases The following September 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 $ 3,668 $ 1,835 $ 327 $ 5,689 $ 344 $ 2,106 $ 13,969 Provisions 1,577 52 (111 ) 1,440 13 929 3,900 Charge-offs (186 ) (161 ) — (763 ) (327 ) (862 ) (2,299 ) Recoveries — — — — — 410 410 Ending balance $ 5,059 $ 1,726 $ 216 $ 6,366 $ 30 $ 2,583 $ 15,980 Nine months ended Beginning balance $ 1,945 $ 2,483 $ 742 $ 4,196 $ 334 $ 1,223 $ 10,923 Provisions 3,591 (400 ) (526 ) 3,932 23 2,686 9,306 Charge-offs (477 ) (357 ) — (1,762 ) (327 ) (2,399 ) (5,322 ) Recoveries — — — — — 1,073 1,073 Ending balance $ 5,059 $ 1,726 $ 216 $ 6,366 $ 30 $ 2,583 $ 15,980 Ending balance: Individually evaluated for impairment $ 1,186 $ 176 $ — $ 1,585 $ 2 $ — $ 2,949 Collectively evaluated for impairment 1,844 1,237 155 3,389 10 2,583 9,218 Loans acquired with deteriorated credit quality 2,029 313 61 1,392 18 — 3,813 Total allowance for loan and lease losses $ 5,059 $ 1,726 $ 216 $ 6,366 $ 30 $ 2,583 $ 15,980 September 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 $ 14,928 $ 1,948 $ 565 $ 6,075 $ 2 $ — $ 23,518 Collectively evaluated for impairment 673,851 428,565 88,315 484,547 2,762 172,341 1,850,381 Loans acquired with deteriorated credit quality 173,106 152,149 5,424 11,433 488 — 342,600 Total loans and leases $ 861,885 $ 582,662 $ 94,304 $ 502,055 $ 3,252 $ 172,341 $ 2,216,499 September 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 $ 2,119 $ 1,303 $ 489 $ 1,472 $ 367 $ 740 $ 6,490 Provisions 27 41 66 624 (3 ) 928 1,683 Charge-offs (1,078 ) 25 (95 ) (2 ) (9 ) (671 ) (1,830 ) Recoveries — — — — — 158 158 Ending balance $ 1,068 $ 1,369 $ 460 $ 2,094 $ 355 $ 1,155 $ 6,501 Nine months ended Beginning balance $ 2,280 $ 2,981 $ 232 $ 1,403 $ 357 $ 379 $ 7,632 Provisions 3,050 (980 ) 323 768 8 2,179 5,348 Charge-offs (4,262 ) (632 ) (95 ) (77 ) (10 ) (1,934 ) (7,010 ) Recoveries — — — — — 531 531 Ending balance $ 1,068 $ 1,369 $ 460 $ 2,094 $ 355 $ 1,155 $ 6,501 Ending balance: Individually evaluated for impairment $ — $ 339 $ — $ 192 $ 328 $ — $ 859 Collectively evaluated for impairment 669 534 413 1,264 1 1,155 4,036 Loans acquired with deteriorated credit quality 399 496 47 638 26 — 1,606 Total allowance for loan and lease losses $ 1,068 $ 1,369 $ 460 $ 2,094 $ 355 $ 1,155 $ 6,501 September 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 $ 6,374 $ 2,553 $ — $ 192 $ 328 $ — $ 9,447 Collectively evaluated for impairment 377,090 438,446 104,369 244,566 1,055 154,557 1,320,083 Loans acquired with deteriorated credit quality 187,359 185,979 7,539 6,512 590 — 387,979 Total loans and leases $ 570,823 $ 626,978 $ 111,908 $ 251,270 $ 1,973 $ 154,557 $ 1,717,509 The Company increased the allowance for loan and lease losses by $2.0 million and $5.1 million for the three and nine months ended September 30, 2017, respectively. The Company increased the For acquired impaired loans, the Company increased the allowance for loan and lease losses by $559,000 and $2.2 million for the three and nine months ended September 30, 2017, respectively. The Company increased the allowance for loan and lease losses for acquired impaired loans by $8,000 for the three months ended September 30, 2016 and decreased the allowance for loan and lease losses for acquired impaired loans by $1.7 million for the nine months ended September 30, 2016. The following and September 30, 2017 Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded Commercial real estate $ 9,541 $ 10,149 $ — Residential real estate 1,581 2,589 — Construction, land development and other land 565 565 — Commercial and industrial 3,465 3,652 — With an allowance recorded Commercial real estate 5,387 5,521 1,186 Residential real estate 367 387 176 Commercial and industrial 2,610 2,934 1,585 Installment and other 2 310 2 Total impaired loans $ 23,518 $ 26,107 $ 2,949 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 tables 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: September 30, 2017 Average Recorded Investment Interest Income Recognized With no related allowance recorded Commercial real estate $ 10,605 $ 419 Residential real estate 1,698 33 Construction, land development and other land 269 2 Commercial and Industrial 2,391 253 With an allowance recorded Commercial real estate 1,043 287 Residential real estate 444 4 Construction, land development and other land 19 — Commercial and industrial 1,673 500 Installment and other 213 11 Total impaired loans $ 18,355 $ 1,509 September 30, 2016 Average Recorded Investment Interest Income Recognized With no related allowance recorded Commercial real estate $ 4,129 $ 128 Residential real estate 2,479 65 Construction, land development and other land 96 — Commercial and industrial 12 — With an allowance recorded Commercial real estate 2,099 — Residential real estate 727 7 Construction, land development and other land 156 — Commercial and industrial 171 2 Installment and other 328 11 Total impaired loans $ 8,337 $ 192 For purposes The following September 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 $ 617,061 $ 421,109 $ 73,781 $ 400,838 $ 2,761 $ 170,410 $ 1,685,960 Watch 44,273 4,871 11,947 71,752 3 214 133,060 Special Mention 11,958 2,513 2,587 10,104 — 894 28,056 Substandard 15,487 2,020 565 7,928 — 639 26,639 Doubtful — — — — — 184 184 Loss — — — — — — — Total $ 688,779 $ 430,513 $ 88,880 $ 490,622 $ 2,764 $ 172,341 $ 1,873,899 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 September 30, 2017 and December 31, 2016: September 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 $ 350 $ 596 $ — $ 8,672 $ 9,618 $ 679,161 $ 688,779 Residential real estate — 220 — 1,852 2,072 428,441 430,513 Construction, land development, and other land — — — 565 565 88,315 88,880 Commercial and industrial 2,245 416 — 3,537 6,198 484,424 490,622 Installment and other 2 — — — 2 2,762 2,764 Lease financing receivables 995 328 — 495 1,818 170,523 172,341 Total $ 3,592 $ 1,560 $ — $ 15,121 $ 20,273 $ 1,853,626 $ 1,873,899 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 September 30, 2017 and December 31, 2016, the September 30, 2017 and Loans modified three and nine months ended September 30, 2017 At September 30, 2017 and December 31, 2016, the nine months ended September 30, 2017 and 2016 |