Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments | Note 6—Allowance for Loans and leases The following September 30, 2018 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 $ 6,453 $ 1,648 $ 332 $ 8,369 $ 30 $ 2,855 $ 19,687 Provisions 1,705 29 58 3,579 12 459 5,842 Charge-offs (736 ) — — (858 ) (4 ) (823 ) (2,421 ) Recoveries — — — 75 — 241 316 Ending balance $ 7,422 $ 1,677 $ 390 $ 11,165 $ 38 $ 2,732 $ 23,424 Nine months ended Beginning balance $ 4,794 $ 1,638 $ 222 $ 7,418 $ 41 $ 2,593 $ 16,706 Provisions 3,975 39 586 8,959 33 1,321 14,913 Charge-offs (1,347 ) — (418 ) (5,539 ) (36 ) (1,888 ) (9,228 ) Recoveries — — — 327 — 706 1,033 Ending balance $ 7,422 $ 1,677 $ 390 $ 11,165 $ 38 $ 2,732 $ 23,424 Ending balance: Individually evaluated for impairment $ 2,294 $ 70 $ — $ 4,044 $ 14 $ — $ 6,422 Collectively evaluated for impairment 3,413 1,150 390 6,301 21 2,732 14,007 Loans acquired with deteriorated credit quality 1,715 457 — 820 3 — 2,995 Total allowance for loan and lease losses $ 7,422 $ 1,677 $ 390 $ 11,165 $ 38 $ 2,732 $ 23,424 September 30, 2018 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 $ 13,612 $ 1,941 $ — $ 19,962 $ 14 $ — $ 35,529 Collectively evaluated for impairment 1,104,484 582,292 177,502 1,061,048 11,722 189,057 3,126,105 Loans acquired with deteriorated credit quality 154,108 120,963 4,203 14,436 458 — 294,168 Total loans and leases $ 1,272,204 $ 705,196 $ 181,705 $ 1,095,446 $ 12,194 $ 189,057 $ 3,455,802 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 (releases) 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 (releases) 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 The Company increased the allowance for loan and lease losses by $3.7 million and $6.7 million for the three and nine months ended September 30, 2018, respectively. The Company increased the allowance for loan and lease losses by $2.0 million and $5.1 million for three and nine months ended September 30, 2017, respectively. For acquired impaired loans, the Company increased the allowance for loan and lease losses by $244,000 for the three months ended September 30, 2018, and decreased the allowance for loan and lease losses by $879,000 for the nine months ended September 30, 2018. The Company increased the allowance for loan and lease losses for acquired impaired loans by $559,000 and $2.2 million for the three and nine months ended September 30, 2017, respectively. The following and September 30, 2018 Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded Commercial real estate $ 8,439 $ 9,566 $ — Residential real estate 1,689 1,655 — Commercial and industrial 9,971 11,694 — With an allowance recorded Commercial real estate 5,173 5,419 2,294 Residential real estate 252 253 70 Commercial and industrial 9,991 10,535 4,044 Installment and other 14 14 14 Total impaired loans $ 35,529 $ 39,136 $ 6,422 December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded Commercial real estate $ 11,425 $ 12,936 $ — Residential real estate 2,075 2,046 — Commercial and industrial 5,470 6,774 — With an allowance recorded Commercial real estate 2,459 2,634 1,101 Residential real estate 354 351 158 Commercial and industrial 9,314 9,724 2,692 Installment and other 14 14 14 Total impaired loans $ 31,111 $ 34,479 $ 3,965 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 nine months ended as follows: September 30, 2018 Average Recorded Investment Interest Income Recognized With no related allowance recorded Commercial real estate $ 9,441 $ 232 Residential real estate 1,910 24 Construction, land development and other land — 15 Commercial and industrial 8,018 194 With an allowance recorded Commercial real estate 5,022 16 Residential real estate 330 3 Commercial and industrial 9,047 484 Installment and other 14 9 Total impaired loans $ 33,782 $ 977 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 For purposes The following September 30, 2018 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Pass $ 1,017,225 $ 544,986 $ 159,712 $ 915,027 $ 11,696 $ 187,623 $ 2,836,269 Watch 71,382 30,287 14,691 128,597 — 100 245,057 Special Mention 14,508 5,729 3,099 15,654 13 856 39,859 Substandard 14,981 3,231 — 21,732 27 317 40,288 Doubtful — — — — — 161 161 Loss — — — — — — — Total $ 1,118,096 $ 584,233 $ 177,502 $ 1,081,010 $ 11,736 $ 189,057 $ 3,161,634 December 31, 2017 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Pass $ 638,066 $ 398,743 $ 73,935 $ 415,163 $ 3,732 $ 174,672 $ 1,704,311 Watch 58,217 29,165 22,380 67,024 20 190 176,996 Special Mention 14,645 2,251 3,168 13,535 — 1,293 34,892 Substandard 14,053 2,497 — 15,508 14 1,259 33,331 Doubtful — — — — — 272 272 Loss — — — — — — — Total $ 724,981 $ 432,656 $ 99,483 $ 511,230 $ 3,766 $ 177,686 $ 1,949,802 The following tables summarize contractual delinquency information for acquired non-impaired and originated loans and leases by category at September 30, 2018 and December 31, 2017: September 30, 2018 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 $ 5,452 $ 1,282 $ — $ 12,553 $ 19,287 $ 1,098,809 $ 1,118,096 Residential real estate 434 196 — 1,631 2,261 581,972 584,233 Construction, land development, and other land — — — — — 177,502 177,502 Commercial and industrial 3,600 2,361 291 13,958 20,210 1,060,800 1,081,010 Installment and other 34 1 — 23 58 11,678 11,736 Lease financing receivables 1,511 624 — 478 2,613 186,444 189,057 Total $ 11,031 $ 4,464 $ 291 $ 28,643 $ 44,429 $ 3,117,205 $ 3,161,634 December 31, 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 $ 4,783 $ 968 $ — $ 8,459 $ 14,210 $ 710,771 $ 724,981 Residential real estate 148 — — 2,092 2,240 430,416 432,656 Construction, land development, and other land — — — — — 99,483 99,483 Commercial and industrial 6,667 967 — 4,348 11,982 499,248 511,230 Installment and other 18 — — 14 32 3,734 3,766 Lease financing receivables 997 638 — 851 2,486 175,200 177,686 Total $ 12,613 $ 2,573 $ — $ 15,764 $ 30,950 $ 1,918,852 $ 1,949,802 Trouble debt restructurings are granted due to borrower financial difficulty and provide for a modification of loan repayment terms. TDRs are treated in the same manner as impaired loans for purposes of calculating the allowance for loan and lease losses. The tables below present TDRs by loan category as September 30, 2018 and December 31, 2017: September 30, 2018 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Charge-offs Specific Reserves Accruing: Commercial real estate 3 $ 914 $ 914 $ — $ 113 Commercial and industrial 2 193 193 — 107 Residential real estate 1 123 123 — — Total accruing 6 1,230 1,230 — 220 Non-accruing: Commercial real estate 8 2,678 2,637 41 420 Commercial and industrial 4 6,593 4,722 1,871 1,155 Total non-accruing 12 9,271 7,359 1,912 1,575 Total troubled debt restructurings 18 10,501 8,589 1,912 1,795 December 31, 2017 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Charge-offs Specific Reserves Accruing: Commercial real estate 3 $ 912 $ 912 $ — $ — Residential real estate 1 149 149 — — Total accruing 4 1,061 1,061 — — Non-accruing: Commercial real estate 2 743 743 — 111 Commercial and industrial 3 1,246 759 487 246 Residential real estate 1 67 67 — — Total non-accruing 6 2,056 1,569 487 357 Total troubled debt restructurings 10 3,117 2,630 487 357 In addition, Loans modified three and nine months ended September 30, 2018 For the Three Months Ended For the Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Accruing: Beginning balance $ 1,238 $ 981 $ 1,061 $ 602 Additions — 673 37 1,017 Net payments (8 ) (23 ) (56 ) (59 ) Net transfers from non-accrual — — 188 71 Ending balance 1,230 1,631 1,230 1,631 Non-accruing: Beginning balance 5,776 470 1,570 552 Additions 1,667 194 7,123 194 Net payments (84 ) (8 ) (1,002 ) (19 ) Charge-offs — — (144 ) — Net transfers to accrual — — (188 ) (71 ) Ending balance 7,359 656 7,359 656 Total troubled debt restructurings 8,589 2,287 8,589 2,287 Troubled No troubled At September 30, 2018 and December 31, 2017, the During the three months ended September 30, 2018 and 2017, the nine months ended September 30, 2018 and 2017 |