Quarterly report pursuant to Section 13 or 15(d)

LOANS AND ALLOWANCE FOR LOAN LOSSES

v3.19.1
LOANS AND ALLOWANCE FOR LOAN LOSSES
3 Months Ended
Mar. 31, 2019
Loans and Leases Receivable Disclosure [Abstract]  
LOANS AND ALLOWANCE FOR LOAN LOSSES
LOANS AND ALLOWANCE FOR LOAN LOSSES

Loans are stated at their face amount, net of deferred fees and costs, and consist of the following at March 31, 2019 and December 31, 2018 (dollars in thousands):
 
March 31, 2019
 
December 31, 2018
Construction and Land Development
$
1,326,679

 
$
1,194,821

Commercial Real Estate - Owner Occupied
1,921,464

 
1,337,345

Commercial Real Estate - Non-Owner Occupied
2,970,453

 
2,467,410

Multifamily Real Estate
591,431

 
548,231

Commercial & Industrial
1,866,625

 
1,317,135

Residential 1-4 Family - Commercial
815,309

 
713,750

Residential 1-4 Family - Mortgage
865,502

 
600,578

Auto
300,631

 
301,943

HELOC
672,087

 
613,383

Consumer
397,491

 
379,694

Other Commercial
224,638

 
241,917

Total loans held for investment, net (1)
$
11,952,310

 
$
9,716,207

 
(1) Loans, as presented, are net of deferred fees and costs totaling $5.8 million and $5.1 million as of March 31, 2019 and December 31, 2018, respectively.
 
The following table shows the aging of the Company’s loan portfolio, by segment, at March 31, 2019 (dollars in thousands):
 
30-59 Days
Past Due
 
60-89 Days
Past Due
 
Greater than 90
Days and still
Accruing
 
PCI
 
Nonaccrual
 
Current
 
Total Loans
Construction and Land Development
$
1,019

 
$
526

 
$
1,997

 
$
12,600

 
$
5,513

 
$
1,305,024

 
$
1,326,679

Commercial Real Estate - Owner Occupied
4,052

 
480

 
2,908

 
26,836

 
3,307

 
1,883,881

 
1,921,464

Commercial Real Estate - Non-Owner Occupied
760

 
4,129

 

 
18,850

 
1,787

 
2,944,927

 
2,970,453

Multifamily Real Estate
596

 

 

 
90

 

 
590,745

 
591,431

Commercial & Industrial
2,565

 
438

 
313

 
4,159

 
721

 
1,858,429

 
1,866,625

Residential 1-4 Family - Commercial
4,059

 
1,365

 
1,490

 
13,693

 
4,244

 
790,458

 
815,309

Residential 1-4 Family - Mortgage
5,889

 
2,196

 
2,476

 
17,180

 
7,119

 
830,642

 
865,502

Auto
2,152

 
297

 
153

 
7

 
523

 
297,499

 
300,631

HELOC
5,020

 
1,753

 
518

 
5,138

 
1,395

 
658,263

 
672,087

Consumer
1,963

 
1,135

 
1,098

 
693

 
124

 
392,478

 
397,491

Other Commercial

 
62

 

 
686

 
108

 
223,782

 
224,638

Total loans held for investment
$
28,075

 
$
12,381

 
$
10,953

 
$
99,932

 
$
24,841

 
$
11,776,128

 
$
11,952,310


 
The following table shows the aging of the Company’s loan portfolio, by segment, at December 31, 2018 (dollars in thousands):
 
30-59 Days
Past Due
 
60-89 Days
Past Due
 
Greater than 90
Days and still
Accruing
 
PCI
 
Nonaccrual
 
Current
 
Total Loans
Construction and Land Development
$
759

 
$
6

 
$
180

 
$
8,654

 
$
8,018

 
$
1,177,204

 
$
1,194,821

Commercial Real Estate - Owner Occupied
8,755

 
1,142

 
3,193

 
25,644

 
3,636

 
1,294,975

 
1,337,345

Commercial Real Estate - Non-Owner Occupied
338

 
41

 

 
17,335

 
1,789

 
2,447,907

 
2,467,410

Multifamily Real Estate

 
146

 

 
88

 

 
547,997

 
548,231

Commercial & Industrial
3,353

 
389

 
132

 
2,156

 
1,524

 
1,309,581

 
1,317,135

Residential 1-4 Family - Commercial
6,619

 
1,577

 
1,409

 
13,707

 
2,481

 
687,957

 
713,750

Residential 1-4 Family - Mortgage
12,049

 
5,143

 
2,437

 
16,766

 
7,276

 
556,907

 
600,578

Auto
3,320

 
403

 
195

 
7

 
576

 
297,442

 
301,943

HELOC
4,611

 
1,644

 
440

 
5,115

 
1,518

 
600,055

 
613,383

Consumer
1,504

 
1,096

 
870

 
32

 
135

 
376,057

 
379,694

Other Commercial
126

 

 

 
717

 

 
241,074

 
241,917

Total loans held for investment
$
41,434

 
$
11,587

 
$
8,856

 
$
90,221

 
$
26,953

 
$
9,537,156

 
$
9,716,207


 

The following table shows the PCI loan portfolios, by segment and their delinquency status, at March 31, 2019 (dollars in thousands):
 
30-89 Days Past
Due
 
Greater than 90
Days
 
Current
 
Total
Construction and Land Development
$
220

 
$
1,257

 
$
11,123

 
$
12,600

Commercial Real Estate - Owner Occupied
453

 
4,891

 
21,492

 
26,836

Commercial Real Estate - Non-Owner Occupied
146

 
1,773

 
16,931

 
18,850

Multifamily Real Estate

 

 
90

 
90

Commercial & Industrial
275

 
1,283

 
2,601

 
4,159

Residential 1-4 Family - Commercial
2,990

 
971

 
9,732

 
13,693

Residential 1-4 Family - Mortgage
2,761

 
2,158

 
12,261

 
17,180

Auto

 

 
7

 
7

HELOC
808

 
105

 
4,225

 
5,138

Consumer
5

 
7

 
681

 
693

Other Commercial

 

 
686

 
686

Total
$
7,658

 
$
12,445

 
$
79,829

 
$
99,932


 

The following table shows the PCI loan portfolios, by segment and their delinquency status, at December 31, 2018 (dollars in thousands):
 
 
30-89 Days Past
Due
 
Greater than 90
Days
 
Current
 
Total
Construction and Land Development
$
108

 
$
1,424

 
$
7,122

 
$
8,654

Commercial Real Estate - Owner Occupied
658

 
4,281

 
20,705

 
25,644

Commercial Real Estate - Non-Owner Occupied
61

 
1,810

 
15,464

 
17,335

Multifamily Real Estate

 

 
88

 
88

Commercial & Industrial
47

 
1,092

 
1,017

 
2,156

Residential 1-4 Family - Commercial
931

 
3,464

 
9,312

 
13,707

Residential 1-4 Family - Mortgage
1,899

 
2,412

 
12,455

 
16,766

Auto

 

 
7

 
7

HELOC
498

 
252

 
4,365

 
5,115

Consumer
5

 
9

 
18

 
32

Other Commercial
57

 

 
660

 
717

Total
$
4,264

 
$
14,744

 
$
71,213

 
$
90,221


 
The Company measures the amount of impairment by evaluating loans either in their collective homogeneous pools or individually. The following table shows the Company’s impaired loans, excluding PCI loans, by segment at March 31, 2019 and December 31, 2018 (dollars in thousands):
 
March 31, 2019
 
December 31, 2018
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
Loans without a specific allowance
 

 
 

 
 

 
 

 
 

 
 

Construction and Land Development
$
4,954

 
$
5,858

 
$

 
$
10,290

 
$
12,038

 
$

Commercial Real Estate - Owner Occupied
7,315

 
7,750

 

 
8,386

 
9,067

 

Commercial Real Estate - Non-Owner Occupied
4,717

 
4,791

 

 
6,578

 
6,929

 

Commercial & Industrial
1,028

 
1,045

 

 
3,059

 
3,251

 

Residential 1-4 Family - Commercial
4,686

 
4,773

 

 
4,516

 
4,576

 

Residential 1-4 Family - Mortgage
8,338

 
8,975

 

 
8,504

 
9,180

 

HELOC
2,247

 
2,262

 

 
1,150

 
1,269

 

Consumer
31

 
102

 

 
30

 
102

 

Other Commercial

 

 

 
478

 
478

 

Total impaired loans without a specific allowance
$
33,316

 
$
35,556

 
$

 
$
42,991

 
$
46,890

 
$

 
 
 
 
 
 
 
 
 
 
 
 
Loans with a specific allowance
 

 
 

 
 

 
 

 
 

 
 

Construction and Land Development
$
3,756

 
$
5,034

 
$
89

 
$
372

 
$
491

 
$
63

Commercial Real Estate - Owner Occupied
4,182

 
4,293

 
256

 
4,304

 
4,437

 
359

Commercial Real Estate - Non-Owner Occupied
2,234

 
2,511

 
4

 
391

 
391

 
1

Commercial & Industrial
1,040

 
1,452

 
208

 
1,183

 
1,442

 
752

Residential 1-4 Family - Commercial
5,194

 
5,275

 
397

 
3,180

 
3,249

 
185

Residential 1-4 Family - Mortgage
6,261

 
6,522

 
539

 
5,329

 
5,548

 
374

Auto
523

 
787

 
208

 
576

 
830

 
231

HELOC
1,191

 
1,290

 
348

 
724

 
807

 
188

Consumer
179

 
340

 
57

 
178

 
467

 
64

Other Commercial
583

 
583

 
31

 

 

 

Total impaired loans with a specific allowance
$
25,143

 
$
28,087

 
$
2,137

 
$
16,237

 
$
17,662

 
$
2,217

Total impaired loans
$
58,459

 
$
63,643

 
$
2,137

 
$
59,228

 
$
64,552

 
$
2,217



The following table shows the average recorded investment and interest income recognized for the Company’s impaired loans, excluding PCI loans, by segment for the three months ended March 31, 2019 and 2018 (dollars in thousands):
 
Three Months Ended
March 31, 2019
 
Three Months Ended March 31, 2018
 
Average
Investment
 
Interest Income
Recognized
 
Average
Investment
 
Interest Income
Recognized
Construction and Land Development
$
9,425

 
$
39

 
$
12,326

 
$
74

Commercial Real Estate - Owner Occupied
11,554

 
105

 
17,112

 
160

Commercial Real Estate - Non-Owner Occupied
6,956

 
59

 
7,904

 
61

Commercial & Industrial
2,224

 
14

 
4,933

 
45

Residential 1-4 Family - Commercial
9,939

 
69

 
6,618

 
56

Residential 1-4 Family - Mortgage
14,793

 
77

 
16,529

 
77

Auto
600

 

 
836

 
5

HELOC
3,472

 
40

 
4,784

 
32

Consumer
215

 
2

 
272

 

Other Commercial
588

 
8

 
492

 
7

Total impaired loans
$
59,766

 
$
413

 
$
71,806

 
$
517



The Company considers TDRs to be impaired loans. A modification of a loan’s terms constitutes a TDR if the creditor grants a concession that it would not otherwise consider to the borrower for economic or legal reasons related to the borrower’s financial difficulties. All loans that are considered to be TDRs are evaluated for impairment in accordance with the Company’s allowance for loan loss methodology and are included in the preceding impaired loan tables. For the three months ended March 31, 2019, the recorded investment in TDRs prior to modifications was not materially impacted by the modification.

The following table provides a summary, by segment, of TDRs that continue to accrue interest under the terms of the applicable restructuring agreement, which are considered to be performing, and TDRs that have been placed on nonaccrual status, which are considered to be nonperforming, as of March 31, 2019 and December 31, 2018 (dollars in thousands):
 
March 31, 2019
 
December 31, 2018
 
No. of
Loans
 
Recorded
Investment
 
Outstanding
Commitment
 
No. of
Loans
 
Recorded
Investment
 
Outstanding
Commitment
Performing
 

 
 

 
 

 
 

 
 

 
 

Construction and Land Development
5

 
$
2,464

 
$

 
5

 
$
2,496

 
$

Commercial Real Estate - Owner Occupied
8

 
2,772

 

 
8

 
2,783

 

Commercial Real Estate - Non-Owner Occupied
4

 
4,429

 

 
4

 
4,438

 

Commercial & Industrial
4

 
1,199

 

 
4

 
978

 

Residential 1-4 Family - Commercial
34

 
3,800

 

 
30

 
2,887

 

Residential 1-4 Family - Mortgage
30

 
5,586

 

 
30

 
5,070

 

HELOC
2

 
57

 

 
2

 
58

 

Consumer
3

 
28

 

 
1

 
13

 

Other Commercial
1

 
474

 

 
1

 
478

 

Total performing
91

 
$
20,809

 
$

 
85

 
$
19,201

 
$

Nonperforming
 

 
 

 
 

 
 

 
 

 
 

Construction and Land Development
1

 
$
1,557

 
$

 
2

 
$
3,474

 
$

Commercial Real Estate - Owner Occupied
2

 
190

 

 
2

 
198

 

Commercial & Industrial
4

 
285

 

 
6

 
461

 

Residential 1-4 Family - Commercial
1

 
60

 

 
1

 
60

 

Residential 1-4 Family - Mortgage
14

 
2,528

 

 
15

 
3,135

 

HELOC
2

 
62

 

 
2

 
62

 

Consumer

 

 

 
1

 
7

 

Total nonperforming
24

 
$
4,682

 
$

 
29

 
$
7,397

 
$

Total performing and nonperforming
115

 
$
25,491

 
$

 
114

 
$
26,598

 
$




The Company considers a default of a TDR to occur when the borrower is 90 days past due following the restructure or a foreclosure and repossession of the applicable collateral occurs. During the three months ended March 31, 2019 and 2018, the Company did not have any material loans that went into default that had been restructured in the twelve-month period prior to the time of default.

The following table shows, by segment and modification type, TDRs that occurred during the three months ended March 31, 2019 and 2018 (dollars in thousands):

 
All Restructurings
 
Three Months Ended
March 31, 2019
 
Three Months Ended
March 31, 2018
 
No. of
Loans
 
Recorded 
Investment at
Period End
 
No. of
Loans
 
Recorded 
Investment at
Period End
Modified to interest only, at a market rate
 
 
 
 
 
 
 
Total interest only at market rate of interest

 
$

 

 
$

 
 
 
 
 
 
 
 
Term modification, at a market rate
 

 
 

 
 

 
 

Commercial Real Estate - Owner Occupied

 
$

 
3

 
$
811

Commercial & Industrial
1

 
441

 

 

Residential 1-4 Family - Commercial
2

 
300

 
1

 
152

Residential 1-4 Family - Mortgage
1

 
38

 
1

 
140

Consumer
1

 
10

 

 

Total loan term extended at a market rate
5

 
$
789

 
5

 
$
1,103

 
 
 
 
 
 
 
 
Term modification, below market rate
 
 
 
 
 
 
 
Residential 1-4 Family - Commercial
5

 
$
937

 

 
$

Residential 1-4 Family - Mortgage

 

 
2

 
164

Consumer
1

 
6

 

 

Total loan term extended at a below market rate
6

 
$
943

 
2

 
$
164

 
 
 
 
 
 
 
 
Total
11

 
$
1,732

 
7

 
$
1,267



The following tables show the ALL activity by segment for the three months ended March 31, 2019 and 2018. The tables below include the provision for loan losses. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands):

 
Three Months Ended March 31, 2019
 
Allowance for loan losses
 
Balance,
beginning of the
year
 
Recoveries
credited to
allowance
 
Loans charged
off
 
Provision
charged to
operations
 
Balance, end of
period
Construction and Land Development
$
6,803

 
$
27

 
$
(732
)
 
$
126

 
$
6,224

Commercial Real Estate - Owner Occupied
4,023

 
25

 
(47
)
 
29

 
4,030

Commercial Real Estate - Non-Owner Occupied
8,865

 
89

 

 
82

 
9,036

Multifamily Real Estate
649

 
85

 

 
(74
)
 
660

Commercial & Industrial
7,636

 
360

 
(980
)
 
395

 
7,411

Residential 1-4 Family - Commercial
1,984

 
87

 
(66
)
 
74

 
2,079

Residential 1-4 Family - Mortgage
1,200

 
155

 
(32
)
 
90

 
1,413

Auto
1,443

 
186

 
(399
)
 
216

 
1,446

HELOC
1,297

 
87

 
(216
)
 
238

 
1,406

Consumer and all other(1)
7,145

 
595

 
(3,467
)
 
2,849

 
7,122

Total
$
41,045

 
$
1,696

 
$
(5,939
)
 
$
4,025

 
$
40,827

(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes.



 
Three Months Ended March 31, 2018
 
Allowance for loan losses
 
Balance,
beginning of the
year
 
Recoveries
credited to
allowance
 
Loans charged
off
 
Provision
charged to
operations
 
Balance, end of
period
Construction and Land Development
$
9,709

 
$
226

 
$
(6
)
 
$
287

 
$
10,216

Commercial Real Estate - Owner Occupied
2,931

 
109

 
(125
)
 
1,057

 
3,972

Commercial Real Estate - Non-Owner Occupied
7,544

 
4

 
(94
)
 
(353
)
 
7,101

Multifamily Real Estate
1,092

 
5

 

 
290

 
1,387

Commercial & Industrial
4,552

 
186

 
(206
)
 
1,162

 
5,694

Residential 1-4 Family - Commercial
4,437

 
52

 
(10
)
 
(1,787
)
 
2,692

Residential 1-4 Family - Mortgage
1,524

 
153

 
(100
)
 
638

 
2,215

Auto
975

 
88

 
(168
)
 
125

 
1,020

HELOC
1,360

 
276

 
(84
)
 
(81
)
 
1,471

Consumer and all other(1)
4,084

 
381

 
(1,766
)
 
2,162

 
4,861

Total
$
38,208

 
$
1,480

 
$
(2,559
)
 
$
3,500

 
$
40,629

(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes.










The following tables show the loan and ALL balances based on impairment methodology by segment as of March 31, 2019 and December 31, 2018 (dollars in thousands):
 
March 31, 2019
 
Loans individually evaluated
for impairment
 
Loans collectively evaluated for
impairment
 
Loans acquired with
deteriorated credit quality
 
Total
 
Loans
 
ALL
 
Loans
 
ALL
 
Loans
 
ALL
 
Loans
 
ALL
Construction and Land Development
$
8,710

 
$
89

 
$
1,305,369

 
$
6,135

 
$
12,600

 
$

 
$
1,326,679

 
$
6,224

Commercial Real Estate - Owner Occupied
11,497

 
256

 
1,883,131

 
3,774

 
26,836

 

 
1,921,464

 
4,030

Commercial Real Estate - Non-Owner Occupied
6,951

 
4

 
2,944,652

 
9,032

 
18,850

 

 
2,970,453

 
9,036

Multifamily Real Estate

 

 
591,341

 
660

 
90

 

 
591,431

 
660

Commercial & Industrial
2,068

 
208

 
1,860,398

 
7,203

 
4,159

 

 
1,866,625

 
7,411

Residential 1-4 Family - Commercial
9,880

 
397

 
791,736

 
1,682

 
13,693

 

 
815,309

 
2,079

Residential 1-4 Family - Mortgage
14,599

 
539

 
833,723

 
874

 
17,180

 

 
865,502

 
1,413

Auto
523

 
208

 
300,101

 
1,238

 
7

 

 
300,631

 
1,446

HELOC
3,438

 
348

 
663,511

 
1,058

 
5,138

 

 
672,087

 
1,406

Consumer and all other(1)
793

 
88

 
619,957

 
7,034

 
1,379

 

 
622,129

 
7,122

Total loans held for investment, net
$
58,459

 
$
2,137

 
$
11,793,919

 
$
38,690

 
$
99,932

 
$

 
$
11,952,310

 
$
40,827

 (1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes.


 
December 31, 2018
 
Loans individually evaluated
for impairment
 
Loans collectively evaluated for
impairment
 
Loans acquired with
deteriorated credit quality
 
Total
 
Loans
 
ALL
 
Loans
 
ALL
 
Loans
 
ALL
 
Loans
 
ALL
Construction and Land Development
$
10,662

 
$
63

 
$
1,175,505

 
$
6,740

 
$
8,654

 
$

 
$
1,194,821

 
$
6,803

Commercial Real Estate - Owner Occupied
12,690

 
359

 
1,299,011

 
3,664

 
25,644

 

 
1,337,345

 
4,023

Commercial Real Estate - Non-Owner Occupied
6,969

 
1

 
2,443,106

 
8,864

 
17,335

 

 
2,467,410

 
8,865

Multifamily Real Estate

 

 
548,143

 
649

 
88

 

 
548,231

 
649

Commercial & Industrial
4,242

 
752

 
1,310,737

 
6,884

 
2,156

 

 
1,317,135

 
7,636

Residential 1-4 Family - Commercial
7,696

 
185

 
692,347

 
1,799

 
13,707

 

 
713,750

 
1,984

Residential 1-4 Family - Mortgage
13,833

 
374

 
569,979

 
826

 
16,766

 

 
600,578

 
1,200

Auto
576

 
231

 
301,360

 
1,212

 
7

 

 
301,943

 
1,443

HELOC
1,874

 
188

 
606,394

 
1,109

 
5,115

 

 
613,383

 
1,297

Consumer and all other(1)
686

 
64

 
620,176

 
7,081

 
749

 

 
621,611

 
7,145

Total loans held for investment, net
$
59,228

 
$
2,217

 
$
9,566,758

 
$
38,828

 
$
90,221

 
$

 
$
9,716,207

 
$
41,045


 (1) Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes.

The Company uses a risk rating system and past due status as the primary credit quality indicators for the loan categories. The risk rating system on a scale of 0 through 9 is used to determine risk level as used in the calculation of the ALL; on those loans without a risk rating, the Company uses past due status to determine risk level. The risk levels, as described below, do not necessarily follow the regulatory definitions of risk levels with the same name. A general description of the characteristics of the risk levels follows:
 
Pass is determined by the following criteria:
Risk rated 0 loans have little or no risk and are with General Obligation Municipal Borrowers;
Risk rated 1 loans have little or no risk and are generally secured by cash or cash equivalents;
Risk rated 2 loans have minimal risk to well qualified borrowers and no significant questions as to safety;
Risk rated 3 loans are satisfactory loans with strong borrowers and secondary sources of repayment;
Risk rated 4 loans are satisfactory loans with borrowers not as strong as risk rated 3 loans and may exhibit a greater
degree of financial risk based on the type of business supporting the loan; or
Loans that are not risk rated but that are 0 to 29 days past due.

Watch & Special Mention is determined by the following criteria:
Risk rated 5 loans are watch loans that warrant more than the normal level of supervision and have the possibility of an
event occurring that may weaken the borrower’s ability to repay;
Risk rated 6 loans have increasing potential weaknesses beyond those at which the loan originally was granted and if
not addressed could lead to inadequately protecting the Company’s credit position; or
Loans that are not risk rated but that are 30 to 89 days past due.

Substandard is determined by the following criteria:
Risk rated 7 loans are substandard loans and are inadequately protected by the current sound worth or paying capacity
of the obligor or the collateral pledged; these have well defined weaknesses that jeopardize the liquidation of the debt
with the distinct possibility the Company will sustain some loss if the deficiencies are not corrected; or
Loans that are not risk rated but that are 90 to 149 days past due.

Doubtful is determined by the following criteria:
Risk rated 8 loans are doubtful of collection and the possibility of loss is high but pending specific borrower plans for
recovery, its classification as a loss is deferred until its more exact status is determined;
Risk rated 9 loans are loss loans which are considered uncollectable and of such little value that their continuance as
    bankable assets is not warranted; or
Loans that are not risk rated but that are over 149 days past due.





















The following table shows the recorded investment in all loans, excluding PCI loans, by segment with their related risk level as of March 31, 2019 (dollars in thousands):
 
 
Pass
 
Watch & Special Mention
 
Substandard
 
Doubtful
 
Total
Construction and Land Development
$
1,256,927

 
$
44,734

 
$
12,413

 
$
5

 
$
1,314,079

Commercial Real Estate - Owner Occupied
1,798,015

 
76,629

 
19,984

 

 
1,894,628

Commercial Real Estate - Non-Owner Occupied
2,890,489

 
54,050

 
7,064

 

 
2,951,603

Multifamily Real Estate
580,548

 
10,793

 

 

 
591,341

Commercial & Industrial
1,753,278

 
106,629

 
2,559

 

 
1,862,466

Residential 1-4 Family - Commercial
766,837

 
26,790

 
7,989

 

 
801,616

Residential 1-4 Family - Mortgage
827,008

 
4,776

 
16,538

 

 
848,322

Auto
296,700

 
2,207

 
1,717

 

 
300,624

HELOC
654,804

 
5,830

 
6,315

 

 
666,949

Consumer
395,747

 
778

 
273

 

 
396,798

Other Commercial
220,323

 
3,521

 
108

 

 
223,952

Total
$
11,440,676

 
$
336,737

 
$
74,960

 
$
5

 
$
11,852,378

 
The following table shows the recorded investment in all loans, excluding PCI loans, by segment with their related risk level as of December 31, 2018 (dollars in thousands):
 
 
Pass
 
Watch & Special Mention
 
Substandard
 
Doubtful
 
Total
Construction and Land Development
$
1,130,577

 
$
43,894

 
$
11,696

 
$

 
$
1,186,167

Commercial Real Estate - Owner Occupied
1,231,422

 
50,939

 
29,340

 

 
1,311,701

Commercial Real Estate - Non-Owner Occupied
2,425,500

 
17,648

 
6,927

 

 
2,450,075

Multifamily Real Estate
537,572

 
10,571

 

 

 
548,143

Commercial & Industrial
1,273,549

 
34,864

 
6,566

 

 
1,314,979

Residential 1-4 Family - Commercial
677,109

 
17,086

 
5,848

 

 
700,043

Residential 1-4 Family - Mortgage
554,192

 
14,855

 
14,765

 

 
583,812

Auto
296,907

 
3,590

 
1,439

 

 
301,936

HELOC
598,444

 
6,316

 
3,508

 

 
608,268

Consumer
378,873

 
547

 
242

 

 
379,662

Other Commercial
239,857

 
864

 
479

 

 
241,200

Total
$
9,344,002

 
$
201,174

 
$
80,810

 
$

 
$
9,625,986



The following table shows the recorded investment in only PCI loans by segment with their related risk level as of March 31, 2019 (dollars in thousands):
 
 
Pass
 
Watch & Special Mention
 
Substandard
 
Doubtful
 
Total
Construction and Land Development
$
1,760

 
$
4,430

 
$
6,410

 
$

 
$
12,600

Commercial Real Estate - Owner Occupied
8,194

 
6,741

 
11,901

 

 
26,836

Commercial Real Estate - Non-Owner Occupied
4,596

 
7,323

 
6,931

 

 
18,850

Multifamily Real Estate

 
90

 

 

 
90

Commercial & Industrial
107

 
1,182

 
2,870

 

 
4,159

Residential 1-4 Family - Commercial
6,673

 
2,907

 
4,043

 
70

 
13,693

Residential 1-4 Family - Mortgage
10,701

 
1,614

 
4,865

 

 
17,180

Auto
4

 

 
3

 

 
7

HELOC
3,395

 
1,192

 
551

 

 
5,138

Consumer
681

 

 
12

 

 
693

Other Commercial
55

 
631

 

 

 
686

Total
$
36,166

 
$
26,110

 
$
37,586

 
$
70

 
$
99,932


The following table shows the recorded investment in only PCI loans by segment with their related risk level as of December 31, 2018 (dollars in thousands):
 
 
Pass
 
Watch & Special Mention
 
Substandard
 
Doubtful
 
Total
Construction and Land Development
$
1,835

 
$
1,308

 
$
5,511

 
$

 
$
8,654

Commercial Real Estate - Owner Occupied
8,347

 
6,685

 
10,612

 

 
25,644

Commercial Real Estate - Non-Owner Occupied
4,789

 
7,992

 
4,554

 

 
17,335

Multifamily Real Estate

 
88

 

 

 
88

Commercial & Industrial
762

 
134

 
1,260

 

 
2,156

Residential 1-4 Family - Commercial
6,512

 
2,771

 
4,424

 

 
13,707

Residential 1-4 Family - Mortgage
9,894

 
1,030

 
5,842

 

 
16,766

Auto
7

 

 

 

 
7

HELOC
3,438

 
1,031

 
646

 

 
5,115

Consumer
17

 

 
15

 

 
32

Other Commercial
57

 
660

 

 

 
717

Total
$
35,658

 
$
21,699

 
$
32,864

 
$

 
$
90,221



Loans acquired are originally recorded at fair value, with certain loans being identified as impaired at the date of purchase. The fair values were determined based on the credit quality of the portfolio, expected future cash flows, and timing of those expected future cash flows.









The following shows changes in the accretable yield for loans accounted for under ASC 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality, for the periods presented (dollars in thousands):
 
 
For the Three Months Ended
March 31,
 
2019
 
2018
Balance at beginning of period
$
31,201

 
$
14,563

Additions
2,432

 
12,225

Accretion
(2,385
)
 
(2,144
)
Reclassification of nonaccretable difference due to improvement in expected cash flows
465

 
(35
)
Other, net (1)
1,508

 
293

Balance at end of period
$
33,221

 
$
24,902

(1) This line item represents changes in the cash flows expected to be collected due to the impact of non-credit changes such as prepayment assumptions, changes in interest rates on variable rate PCI loans, and discounted payoffs that occurred in the quarter.
 
The carrying value of the Company’s PCI loan portfolio, accounted for under ASC 310-30, Receivables - Loans and Debt Securities Acquired with Deteriorated Credit Quality, totaled $99.9 million at March 31, 2019 and $90.2 million at December 31, 2018. The outstanding balance of the Company’s PCI loan portfolio totaled $125.0 million at March 31, 2019 and $113.5 million at December 31, 2018. The carrying value of the Company’s acquired performing loan portfolio, accounted for under ASC 310-20, Receivables – Nonrefundable Fees and Other Costs, totaled $3.9 billion at March 31, 2019 and $2.0 billion at December 31, 2018; the remaining discount on these loans totaled $63.5 million at March 31, 2019 and $30.3 million at December 31, 2018.