Allowance for Loan and Leases and Reserve for Unfunded Commitments | Note 6—Allowance for Loans and leases The following June 30, 2020 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Paycheck Protection Program Installment and Other Lease Financing Receivables Total Allowance for loan and lease losses Three months ended Beginning balance $ 11,851 $ 2,778 $ 1,004 $ 24,139 $ — $ 53 $ 2,015 $ 41,840 Provisions 3,306 956 487 10,695 — (17 ) 91 15,518 Charge-offs (1,088 ) (4 ) — (4,845 ) — — (561 ) (6,498 ) Recoveries 41 11 — 119 — — 269 440 Ending balance $ 14,110 $ 3,741 $ 1,491 $ 30,108 $ — $ 36 $ 1,814 $ 51,300 Six months ended Beginning balance $ 7,965 $ 1,990 $ 610 $ 19,377 $ — $ 50 $ 1,944 $ 31,936 Provisions 7,728 1,740 881 19,241 — (14 ) 397 29,973 Charge-offs (1,640 ) (9 ) — (8,803 ) — — (1,018 ) (11,470 ) Recoveries 57 20 — 293 — — 491 861 Ending balance $ 14,110 $ 3,741 $ 1,491 $ 30,108 $ — $ 36 $ 1,814 $ 51,300 Ending balance: Individually evaluated for impairment $ 3,525 $ 80 $ — $ 10,409 $ — $ — $ — $ 14,014 Collectively evaluated for impairment 8,576 2,898 1,404 17,822 — 36 1,814 32,550 Loans acquired with deteriorated credit quality 2,009 763 87 1,877 — — — 4,736 Total allowance for loan and lease losses $ 14,110 $ 3,741 $ 1,491 $ 30,108 $ — $ 36 $ 1,814 $ 51,300 June 30, 2020 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Paycheck Protection Program Installment and Other Lease Financing Receivables Total Loans and leases ending balance: Individually evaluated for impairment $ 36,751 $ 1,805 $ 4,189 $ 35,545 $ — $ — $ — $ 78,290 Collectively evaluated for impairment 1,187,800 578,175 237,030 1,282,119 611,664 3,532 176,828 4,077,148 Loans acquired with deteriorated credit quality 126,405 90,784 4,784 13,485 — 226 — 235,684 Total loans and leases $ 1,350,956 $ 670,764 $ 246,003 $ 1,331,149 $ 611,664 $ 3,758 $ 176,828 $ 4,391,122 June 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 $ 6,660 $ 1,970 $ 536 $ 15,630 $ 63 $ 2,247 $ 27,106 Provisions 2,695 (62 ) 155 3,320 8 275 6,391 Charge-offs (818 ) (9 ) — (1,827 ) (4 ) (622 ) (3,280 ) Recoveries 397 272 — 3 — 243 915 Ending balance $ 8,934 $ 2,171 $ 691 $ 17,126 $ 67 $ 2,143 $ 31,132 Six months ended Beginning balance $ 7,540 $ 1,751 $ 466 $ 12,932 $ 49 $ 2,463 $ 25,201 Provisions 3,137 156 225 6,352 22 498 10,390 Charge-offs (2,169 ) (9 ) — (2,179 ) (4 ) (1,267 ) (5,628 ) Recoveries 426 273 — 21 — 449 1,169 Ending balance $ 8,934 $ 2,171 $ 691 $ 17,126 $ 67 $ 2,143 $ 31,132 Ending balance: Individually evaluated for impairment $ 2,775 $ 22 $ — $ 6,489 $ — $ — $ 9,286 Collectively evaluated for impairment 4,433 1,559 676 9,495 65 2,143 18,371 Loans acquired with deteriorated credit quality 1,726 590 15 1,142 2 — 3,475 Total allowance for loan and lease losses $ 8,934 $ 2,171 $ 691 $ 17,126 $ 67 $ 2,143 $ 31,132 June 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 $ 18,707 $ 2,899 $ — $ 24,278 $ — $ — $ 45,884 Collectively evaluated for impairment 1,141,705 656,329 247,728 1,275,922 12,609 188,420 3,522,713 Loans acquired with deteriorated credit quality 151,127 118,534 4,220 20,370 300 — 294,551 Total loans and leases $ 1,311,539 $ 777,762 $ 251,948 $ 1,320,570 $ 12,909 $ 188,420 $ 3,863,148 The Company increased the allowance for loan and lease losses by $9.5 million and $19.4 million for the three and six months ended June 30, 2020, respectively, and by $4.0 million and $5.9 million for the three and six months ended June 30, 2019, respectively. For acquired impaired loans, the Company increased the allowance for loan and lease losses by $434,000 and $2.0 million for the three and six months ended June 30, 2020, respectively, and by $629,000 and $740,000 for the three and six months ended June 30, 2019, respectively For loans individually evaluated for impairment, the Company increased the allowance for loan and lease losses by $579,000 and $3.3 million for the three and six months ended June 30, 2020, respectively, and by $1.7 million and $2.6 million for the three and six months ended June 30, 2019, respectively. For loans collectively evaluated for impairment, the Company increased the allowance for loan and lease losses by $8.4 million and $14.1 million for the three and six months ended June 30, 2020, respectively, and by $1.7 million and $2.6 million for the three and six months ended June 30, 2019, respectively. An allowance for loan and lease loss allocation has not been made for Paycheck Protection Program (“PPP”) loans as the loans have a 100% SBA guarantee. On a quarterly basis, the Company assesses the collectability of its government guarantee using historical experience. The following and June 30, 2020 Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded Commercial real estate $ 24,950 $ 91,211 $ — Residential real estate 1,534 1,624 — Construction, land development, and other land 4,189 4,216 — Commercial and industrial 16,774 43,215 — With an allowance recorded Commercial real estate 11,801 47,249 3,525 Residential real estate 271 274 80 Commercial and industrial 18,771 59,869 10,409 Total impaired loans $ 78,290 $ 247,658 $ 14,014 December 31, 2019 Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded Commercial real estate $ 16,556 $ 19,808 $ — Residential real estate 2,165 2,253 — Construction, land development, and other land 2,644 3,000 — Commercial and industrial 19,211 20,398 — With an allowance recorded Commercial real estate 9,840 10,691 2,614 Residential real estate 233 233 124 Commercial and industrial 18,092 19,285 7,952 Total impaired loans $ 68,741 $ 75,668 $ 10,690 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 six months ended: June 30, 2020 Average Recorded Investment Interest Income Recognized With no related allowance recorded Commercial real estate $ 20,544 $ 555 Residential real estate 1,398 15 Construction, land development, and other land 3,094 220 Commercial and industrial 16,651 262 With an allowance recorded Commercial real estate 13,402 339 Residential real estate 512 21 Commercial and industrial 22,948 746 Total impaired loans $ 78,549 $ 2,158 June 30, 2019 Average Recorded Investment Interest Income Recognized With no related allowance recorded Commercial real estate $ 8,094 $ 187 Residential real estate 1,785 27 Commercial and industrial 11,583 223 With an allowance recorded Commercial real estate 6,793 155 Residential real estate 219 4 Commercial and industrial 12,043 247 Total impaired loans $ 40,517 $ 843 The following June 30, 2020 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Paycheck Protection Program Installment and Other Lease Financing Receivables Total Pass $ 1,012,490 $ 551,885 $ 232,121 $ 1,053,606 $ 611,664 $ 3,257 $ 172,443 $ 3,637,466 Watch 139,224 20,614 3,472 175,207 — 273 — 338,790 Special Mention 37,306 3,731 1,437 52,739 — — 2,242 97,455 Substandard 35,531 3,750 4,189 36,112 — 2 1,574 81,158 Doubtful — — — — — — 569 569 Loss — — — — — — — — Total $ 1,224,551 $ 579,980 $ 241,219 $ 1,317,664 $ 611,664 $ 3,532 $ 176,828 $ 4,155,438 December 31, 2019 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Pass $ 984,881 $ 584,363 $ 247,775 $ 1,087,856 $ 6,013 $ 177,696 $ 3,088,584 Watch 99,803 21,856 18,181 159,282 302 8 299,432 Special Mention 27,484 3,648 4,684 26,944 — 1,799 64,559 Substandard 28,460 1,732 2,644 40,574 1 728 74,139 Doubtful — — — — — 279 279 Loss — — — — — — — Total $ 1,140,628 $ 611,599 $ 273,284 $ 1,314,656 $ 6,316 $ 180,510 $ 3,526,993 The following tables summarize contractual delinquency information for acquired non-impaired and originated loans and leases by category at June 30, 2020 and December 31, 2019: June 30, 2020 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 $ 2,864 $ 2,150 $ — $ 17,963 $ 22,977 $ 1,201,574 $ 1,224,551 Residential real estate 2,302 349 — 1,780 4,431 575,549 579,980 Construction, land development, and other land — — — — — 241,219 241,219 Commercial and industrial 3,298 360 — 19,100 22,758 1,294,906 1,317,664 Paycheck Protection Program — — — — — 611,664 611,664 Installment and other 4 36 — 2 42 3,490 3,532 Lease financing receivables 912 396 — 1,660 2,968 173,860 176,828 Total $ 9,380 $ 3,291 $ — $ 40,505 $ 53,176 $ 4,102,262 $ 4,155,438 December 31, 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 $ 14,269 $ 5,153 $ — $ 12,274 $ 31,696 $ 1,108,932 $ 1,140,628 Residential real estate 3,187 460 — 1,371 5,018 606,581 611,599 Construction, land development, and other land — 4,460 — — 4,460 268,824 273,284 Commercial and industrial 7,789 3,594 — 22,151 33,534 1,281,122 1,314,656 Installment and other 133 2 — 1 136 6,180 6,316 Lease financing receivables 585 532 — 475 1,592 178,918 180,510 Total $ 25,963 $ 14,201 $ — $ 36,272 $ 76,436 $ 3,450,557 $ 3,526,993 Trouble debt restructurings (“TDRs”) 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 June 30, 2020 and December 31, 2019: June 30, 2020 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Charge-offs Specific Reserves Accruing: Commercial real estate 7 $ 2,856 $ 2,856 $ — $ 98 Commercial and industrial 2 123 123 — 101 Residential real estate 2 172 172 — — Total accruing 11 3,151 3,151 — 199 Non-accruing: Commercial real estate 6 2,840 1,911 929 55 Commercial and industrial 13 5,524 5,447 77 3,757 Residential real estate 1 91 91 — — Total non-accruing 20 8,455 7,449 1,006 3,812 Total troubled debt restructurings 31 $ 11,606 $ 10,600 $ 1,006 $ 4,011 December 31, 2019 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Charge-offs Specific Reserves Accruing: Commercial real estate 5 $ 1,451 $ 1,451 $ — $ 223 Commercial and industrial 2 129 129 — 118 Residential real estate 2 191 191 — — Total accruing 9 1,771 1,771 — 341 Non-accruing: Commercial real estate 6 2,777 2,600 177 513 Commercial and industrial 11 8,048 6,096 1,952 1,312 Residential real estate 1 104 104 — — Total non-accruing 18 10,929 8,800 2,129 1,825 Total troubled debt restructurings 27 $ 12,700 $ 10,571 $ 2,129 $ 2,166 In addition, Loans modified and 2019 were: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Accruing: Beginning balance $ 1,725 $ 1,921 $ 1,771 $ 1,813 Additions — — — 113 Net payments (30 ) (44 ) (76 ) (49 ) Net transfers from (to) non-accrual 1,456 (348 ) 1,456 (348 ) Ending balance 3,151 1,529 3,151 1,529 Non-accruing: Beginning balance 12,117 7,119 8,800 7,314 Additions 1,375 1,182 5,633 1,428 Net payments (445 ) (815 ) (1,386 ) (726 ) Charge-offs (4,142 ) — (4,142 ) (530 ) Net transfers from (to) accrual (1,456 ) 348 (1,456 ) 348 Ending balance 7,449 7,834 7,449 7,834 Total troubled debt restructurings $ 10,600 $ 9,363 $ 10,600 $ 9,363 There were At June 30, 2020 and December 31, 2019, the During the , the |