XML 26 R14.htm IDEA: XBRL DOCUMENT v3.5.0.2
Purchased Credit Impaired ("PCI") Loans
 9 Months Ended
Sep. 30, 2016
Receivables [Abstract]  
Purchase Credit Impaired (PCI) Loans
PURCHASED CREDIT IMPAIRED ("PCI") LOANS

Below is a summary of PCI loans by category at September 30, 2016 and December 31, 2015:
 
 
September 30, 2016
 
December 31, 2015
(in thousands)
Weighted-
Average
Risk Rating1
Recorded
Investment
PCI Loans
 
Weighted-
Average
Risk Rating1
Recorded
Investment
PCI Loans
Commercial and industrial
5.84
$
3,282

 
6.70
$
3,863

Real estate:
 
 
 
 
 
    Commercial - investor owned
6.94
14,595

 
6.98
25,272

    Commercial - owner occupied
6.34
12,417

 
6.30
19,414

    Construction and land development
5.67
4,919

 
6.28
6,838

    Residential
5.66
12,173

 
5.44
19,287

Total real estate loans
 
44,104

 
 
70,811

Consumer and other
1.54
63

 
1.89
84

    Purchased credit impaired loans
 
$
47,449

 
 
$
74,758

1Risk ratings are based on the borrower's contractual obligation, which is not reflective of the purchase discount.


The aging of the recorded investment in past due PCI loans by portfolio class and category at September 30, 2016 and December 31, 2015 is shown below:

 
September 30, 2016
(in thousands)
30-89 Days
 Past Due
 
90 or More
Days
Past Due
 
Total
Past Due
 
Current
 
Total
    Commercial and industrial
$
805

 
$
—

 
$
805

 
$
2,477

 
$
3,282

    Real estate:
 
 
 
 
 
 
 
 
 
       Commercial - investor owned
—

 
—

 
—

 
14,595

 
14,595

       Commercial - owner occupied
229

 
—

 
229

 
12,188

 
12,417

       Construction and land development
—

 
—

 
—

 
4,919

 
4,919

       Residential
84

 
55

 
139

 
12,034

 
12,173

    Consumer and other
—

 
—

 
—

 
63

 
63

          Total
$
1,118

 
$
55


$
1,173


$
46,276


$
47,449


 
December 31, 2015
(in thousands)
30-89 Days
 Past Due
 
90 or More
Days
Past Due
 
Total
Past Due
 
Current
 
Total
    Commercial and industrial
$
—

 
$
—

 
$
—

 
$
3,863

 
$
3,863

    Real estate:
 
 
 
 
 
 
 
 
 
       Commercial - investor owned
2,342

 
3,661

 
6,003

 
19,269

 
25,272

       Commercial - owner occupied
731

 
—

 
731

 
18,683

 
19,414

       Construction and land development
—

 
—

 
—

 
6,838

 
6,838

       Residential
1,594

 
130

 
1,724

 
17,563

 
19,287

    Consumer and other
4

 
—

 
4

 
80

 
84

          Total
$
4,671

 
$
3,791


$
8,462


$
66,296


$
74,758



The following table is a rollforward of PCI loans, net of the allowance for loan losses, for the nine months ended September 30, 2016 and 2015.

(in thousands)
Contractual Cashflows
 
Non-accretable Difference
 
Accretable Yield
 
Carrying Amount
Balance January 1, 2016
$
116,689

 
$
26,765

 
$
25,341

 
$
64,583

Principal reductions and interest payments
(20,417
)
 
—

 
—

 
(20,417
)
Accretion of loan discount
—

 
—

 
(4,984
)
 
4,984

Changes in contractual and expected cash flows due to remeasurement
9,194

 
975

 
(1,043
)
 
9,262

Reductions due to disposals
(27,888
)
 
(6,779
)
 
(3,713
)
 
(17,396
)
Balance September 30, 2016
$
77,578

 
$
20,961


$
15,601


$
41,016

 
 
 
 
 
 
 
 
Balance January 1, 2015
$
178,145

 
$
65,719

 
$
28,733

 
$
83,693

Principal reductions and interest payments
(19,315
)
 
—

 
—

 
(19,315
)
Accretion of loan discount
—

 
—

 
(8,604
)
 
8,604

Changes in contractual and expected cash flows due to remeasurement
(5,731
)
 
(26,797
)
 
9,233

 
11,833

Reductions due to disposals
(19,734
)
 
(4,183
)
 
(3,133
)
 
(12,418
)
Balance September 30, 2015
$
133,365

 
$
34,739


$
26,229


$
72,397



The accretable yield is recognized in interest income over the estimated life of the acquired loans using the effective yield method. Outstanding customer balances on PCI loans were $64.6 million and $98.6 million as of September 30, 2016, and December 31, 2015, respectively.