Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments | Note 6—Allowance for Loans and leases The following September 30, 2019 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 $ 8,934 $ 2,171 $ 691 $ 17,126 $ 67 $ 2,143 $ 31,132 Provisions 1,075 74 125 4,198 (12 ) 471 5,931 Charge-offs (1,459 ) — — (3,561 ) (1 ) (665 ) (5,686 ) Recoveries 3 6 — 20 1 178 208 Ending balance $ 8,553 $ 2,251 $ 816 $ 17,783 $ 55 $ 2,127 $ 31,585 Nine months ended Beginning balance $ 7,540 $ 1,751 $ 466 $ 12,932 $ 49 $ 2,463 $ 25,201 Provisions 4,212 230 350 10,550 10 969 16,321 Charge-offs (3,628 ) (9 ) — (5,740 ) (5 ) (1,932 ) (11,314 ) Recoveries 429 279 — 41 1 627 1,377 Ending balance $ 8,553 $ 2,251 $ 816 $ 17,783 $ 55 $ 2,127 $ 31,585 Ending balance: Individually evaluated for impairment $ 2,728 $ 39 $ — $ 6,795 $ — $ — $ 9,562 Collectively evaluated for impairment 4,458 1,612 802 10,169 53 2,127 19,221 Loans acquired with deteriorated credit quality 1,367 600 14 819 2 — 2,802 Total allowance for loan and lease losses $ 8,553 $ 2,251 $ 816 $ 17,783 $ 55 $ 2,127 $ 31,585 September 30, 2019 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 $ 24,071 $ 2,374 $ — $ 26,731 $ — $ — $ 53,176 Collectively evaluated for impairment 1,139,782 637,320 276,437 1,257,082 9,087 183,184 3,502,892 Loans acquired with deteriorated credit quality 142,435 109,409 4,562 18,349 267 — 275,022 Total loans and leases $ 1,306,288 $ 749,103 $ 280,999 $ 1,302,162 $ 9,354 $ 183,184 $ 3,831,090 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 The Company increased the allowance for loan and lease losses by $453,000 and $6.4 million for the three and nine months ended September 30, 2019, respectively. 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. For acquired impaired loans, the Company decreased the allowance for loan and lease losses by $480,000 for the three months ended September 30, 2019. The Company increased the allowance for acquired impaired loan and lease losses by $260,000 for the The Company increased the allowance for loan and lease losses for acquired impaired loans 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 For loans individually evaluated for impairment, the Company increased the allowance for loan and lease losses by $276,000 and $2.9 million for the three and nine months ended September 30, 2019, respectively. The Company increased the allowance for loan and lease losses by $1.5 million and $2.5 million for the three and nine months ended September 30, 2018, respectively. For loans collectively evaluated for impairment, the Company increased the allowance for loan and lease losses by $850,000 and $3.4 million for the three and nine months ended September 30, 2019, respectively. 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, 2018, respectively. The following and September 30, 2019 Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded Commercial real estate $ 15,636 $ 16,653 $ — Residential real estate 2,246 2,356 — Commercial and industrial 9,557 10,510 — With an allowance recorded Commercial real estate 8,435 9,246 2,728 Residential real estate 128 146 39 Commercial and industrial 17,174 18,353 6,795 Total impaired loans $ 53,176 $ 57,264 $ 9,562 December 31, 2018 Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded Commercial real estate $ 6,110 $ 7,693 $ — Residential real estate 1,886 1,858 — Commercial and industrial 11,193 13,961 — With an allowance recorded Commercial real estate 5,873 6,313 2,191 Residential real estate 251 253 61 Commercial and industrial 10,601 11,153 4,397 Total impaired loans $ 35,914 $ 41,231 $ 6,649 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, 2019 Average Recorded Investment Interest Income Recognized With no related allowance recorded Commercial real estate $ 9,379 $ 761 Residential real estate 1,914 60 Commercial and industrial 11,889 482 With an allowance recorded Commercial real estate 8,238 479 Residential real estate 207 7 Commercial and industrial 13,543 668 Total impaired loans $ 45,170 $ 2,457 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 For purposes The following September 30, 2019 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Pass $ 1,008,797 $ 608,106 $ 254,745 $ 1,034,730 $ 8,916 $ 179,954 $ 3,095,248 Watch 103,761 10,986 14,544 183,458 170 16 312,935 Special Mention 24,998 17,975 7,148 24,289 — 2,097 76,507 Substandard 26,297 2,627 — 41,336 1 595 70,856 Doubtful — — — — — 522 522 Loss — — — — — — — Total $ 1,163,853 $ 639,694 $ 276,437 $ 1,283,813 $ 9,087 $ 183,184 $ 3,556,068 December 31, 2018 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Pass $ 1,009,041 $ 553,665 $ 147,123 $ 962,291 $ 9,997 $ 188,314 $ 2,870,431 Watch 76,276 29,522 31,376 112,996 3,302 80 253,552 Special Mention 17,602 5,656 3,071 34,314 — 1,794 62,437 Substandard 11,880 2,125 — 22,579 15 818 37,417 Doubtful — — — — — 247 247 Loss — — — — — — — Total $ 1,114,799 $ 590,968 $ 181,570 $ 1,132,180 $ 13,314 $ 191,253 $ 3,224,084 The following tables summarize contractual delinquency information for acquired non-impaired and originated loans and leases by category at September 30, 2019 and December 31, 2018: September 30, 2019 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 $ 6,140 $ 2,449 $ — $ 12,186 $ 20,775 $ 1,143,078 $ 1,163,853 Residential real estate 632 501 — 2,092 3,225 636,469 639,694 Construction, land development, and other land — 3,203 — — 3,203 273,234 276,437 Commercial and industrial 9,136 1,018 — 24,592 34,746 1,249,067 1,283,813 Installment and other 12 — — 1 13 9,074 9,087 Lease financing receivables 651 460 — 657 1,768 181,416 183,184 Total $ 16,571 $ 7,631 $ — $ 39,528 $ 63,730 $ 3,492,338 $ 3,556,068 December 31, 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 $ 6,659 $ 2,145 $ — $ 9,484 $ 18,288 $ 1,096,511 $ 1,114,799 Residential real estate 4,488 711 — 1,815 7,014 583,954 590,968 Construction, land development, and other land — — — — — 181,570 181,570 Commercial and industrial 5,829 1,376 — 13,932 21,137 1,111,043 1,132,180 Installment and other 1,932 4 — 12 1,948 11,366 13,314 Lease financing receivables 789 530 — 591 1,910 189,343 191,253 Total $ 19,697 $ 4,766 $ — $ 25,834 $ 50,297 $ 3,173,787 $ 3,224,084 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 of September 30, 2019 and December 31, 2018: September 30, 2019 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Charge-offs Specific Reserves Accruing: Commercial real estate 5 $ 1,476 $ 1,476 $ — $ 179 Commercial and industrial 3 528 528 — 120 Residential real estate 2 200 200 — — Total accruing 10 2,204 2,204 — 299 Non-accruing: Commercial real estate 8 3,650 3,473 177 553 Commercial and industrial 10 7,493 5,622 1,871 1,268 Residential real estate 1 113 113 — — Total non-accruing 19 11,256 9,208 2,048 1,821 Total troubled debt restructurings 29 $ 13,460 $ 11,412 $ 2,048 $ 2,120 December 31, 2018 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Charge-offs Specific Reserves Accruing: Commercial real estate 4 $ 1,508 $ 1,508 $ — $ 113 Commercial and industrial 2 191 191 — 100 Residential real estate 1 114 114 — — Total accruing 7 1,813 1,813 — 213 Non-accruing: Commercial real estate 9 2,512 2,471 41 743 Commercial and industrial 6 6,714 4,843 1,871 1,290 Total non-accruing 15 9,226 7,314 1,912 2,033 Total troubled debt restructurings 22 $ 11,039 $ 9,127 $ 1,912 $ 2,246 In addition, Loans modified and 2018: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Accruing: Beginning balance $ 1,529 $ 1,238 $ 1,813 $ 1,061 Additions — — 113 37 Net payments (242 ) (8 ) (291 ) (56 ) Net transfers from (to) non-accrual 917 — 569 188 Ending balance 2,204 1,230 2,204 1,230 Non-accruing: Beginning balance 7,834 5,776 7,314 1,570 Additions 2,893 1,667 4,321 7,123 Net payments (540 ) (84 ) (1,266 ) (1,002 ) Charge-offs (62 ) — (592 ) (144 ) Net transfers from (to) accrual (917 ) — (569 ) (188 ) Ending balance 9,208 7,359 9,208 7,359 Total troubled debt restructurings 11,412 8,589 11,412 8,589 Troubled debt restructurings that subsequently defaulted within twelve months of the restructure date during the three and nine months ended September 30, 2019 had a recorded investment of zero and $348,000, respectively. Troubled debt restructurings that subsequently defaulted within twelve months of the restructure date during the three and nine months ended September 30, 2018 had a recorded investment of zero and $340,000, respectively. At September 30, 2019 and December 31, 2018, the During the , the |