Loans and Allowance for Loan and Lease Losses (Tables)

3 Months Ended

Mar. 31, 2016

Loans And Leases Receivable Disclosure [Abstract]

Summary of Information Concerning Loan Portfolio

Loans at March 31, 2016 and December 31, 2015 consisted of the following:

	March 31,			December 31,
(Dollars in thousands)	2016			2015
Commercial real estate	$	293,485		$	291,819
Construction, land development, land		41,622			43,876
1-4 family residential properties		76,973			78,244
Farmland		33,250			33,573
Commercial		509,433			495,356
Factored receivables		199,532			215,088
Consumer		13,530			13,050
Mortgage warehouse		78,015			120,879
Total		1,245,840			1,291,885
Allowance for loan and lease losses		(12,093	)		(12,567	)
	$	1,233,747		$	1,279,318

Summary of Allowance for Loan and Lease Losses

Allowance for Loan and Lease Losses

The activity in the allowance for loan and lease losses (“ALLL”) during the three months ended March 31, 2016 and 2015 is as follows:

(Dollars in thousands)	Beginning										Ending
Three months ended March 31, 2016	Balance		Provision			Charge-offs			Recoveries		Balance
Commercial real estate	$	1,489	$	129		$	—		$	1	$	1,619
Construction, land development, land		367		(169	)		—			—		198
1-4 family residential properties		274		22			(16	)		5		285
Farmland		134		(1	)		—			—		133
Commercial		5,276		25			—			30		5,331
Factored receivables		4,509		(440	)		(8	)		49		4,110
Consumer		216		30			(43	)		19		222
Mortgage warehouse		302		(107	)		—			—		195
	$	12,567	$	(511	)	$	(67	)	$	104	$	12,093

(Dollars in thousands)	Beginning										Ending
Three months ended March 31, 2015	Balance		Provision			Charge-offs			Recoveries		Balance
Commercial real estate	$	533	$	590		$	(89	)	$	41	$	1,075
Construction, land development, land		333		11			—			—		344
1-4 family residential properties		215		90			(105	)		23		223
Farmland		19		7			—			—		26
Commercial		4,003		(7	)		(2	)		2		3,996
Factored receivables		3,462		(45	)		(67	)		30		3,380
Consumer		140		(21	)		(95	)		60		84
Mortgage warehouse		138		20			—			—		158
	$	8,843	$	645		$	(358	)	$	156	$	9,286

Summary of Individual and Collective Allowance for Loan Losses and Loan Balances by Class

The following table presents loans individually and collectively evaluated for impairment, as well as purchased credit impaired (“PCI”) loans, and their respective allowance allocations:

(Dollars in thousands)	Loan Evaluation								ALLL Allocations
March 31, 2016	Individually		Collectively		PCI		Total loans		Individually		Collectively		PCI		Total ALLL
Commercial real estate	$	714	$	287,658	$	5,113	$	293,485	$	100	$	1,078	$	441	$	1,619
Construction, land development, land		—		40,463		1,159		41,622		—		198		—		198
1-4 family residential properties		637		73,595		2,741		76,973		1		284		—		285
Farmland		—		33,250		—		33,250		—		133		—		133
Commercial		12,302		494,038		3,093		509,433		1,246		4,085		—		5,331
Factored receivables		4,940		194,592		—		199,532		1,574		2,536		—		4,110
Consumer		37		13,493		—		13,530		—		222		—		222
Mortgage warehouse		—		78,015		—		78,015		—		195		—		195
	$	18,630	$	1,215,104	$	12,106	$	1,245,840	$	2,921	$	8,731	$	441	$	12,093

(Dollars in thousands)	Loan Evaluation								ALLL Allocations
December 31, 2015	Individually		Collectively		PCI		Total loans		Individually		Collectively		PCI		Total ALLL
Commercial real estate	$	724	$	286,006	$	5,089	$	291,819	$	100	$	1,034	$	355	$	1,489
Construction, land development, land		—		42,499		1,377		43,876		—		367		—		367
1-4 family residential properties		618		74,714		2,912		78,244		1		273		—		274
Farmland		—		33,573		—		33,573		—		134		—		134
Commercial		7,916		483,587		3,853		495,356		796		4,480		—		5,276
Factored receivables		3,422		211,666		—		215,088		1,694		2,815		—		4,509
Consumer		—		13,050		—		13,050		—		216		—		216
Mortgage warehouse		—		120,879		—		120,879		—		302		—		302
	$	12,680	$	1,265,974	$	13,231	$	1,291,885	$	2,591	$	9,621	$	355	$	12,567

Summary of Information Pertaining to Impaired Loans

The following is a summary of information pertaining to impaired loans. Loans included in these tables are non-PCI impaired loans and PCI loans that have deteriorated subsequent to acquisition and as a result have been deemed impaired and an allowance recorded. PCI loans that have not deteriorated subsequent to acquisition are not considered impaired and therefore do not require an allowance and are excluded from these tables.

	Impaired Loans and Purchased Credit						Impaired Loans
	Impaired Loans With a Valuation Allowance						Without a Valuation Allowance
(Dollars in thousands)	Recorded		Unpaid		Related		Recorded		Unpaid
March 31, 2016	Investment		Principal		Allowance		Investment		Principal
Commercial real estate	$	532	$	532	$	100	$	182	$	218
Construction, land development, land		—		—		—		—		—
1-4 family residential properties		13		20		1		624		734
Farmland		—		—		—		—		—
Commercial		5,535		5,563		1,246		6,767		6,776
Factored receivables		4,435		4,435		1,574		505		505
Consumer		—		—		—		37		37
Mortgage warehouse		—		—		—		—		—
PCI		1,423		1,679		441		—		—
	$	11,938	$	12,229	$	3,362	$	8,115	$	8,270

	Impaired Loans and Purchased Credit						Impaired Loans
	Impaired Loans With a Valuation Allowance						Without a Valuation Allowance
(Dollars in thousands)	Recorded		Unpaid		Related		Recorded		Unpaid
December 31, 2015	Investment		Principal		Allowance		Investment		Principal
Commercial real estate	$	531	$	532	$	100	$	193	$	229
Construction, land development, land		—		—		—		—		—
1-4 family residential properties		14		21		1		604		793
Farmland		—		—		—		—		—
Commercial		1,491		1,520		796		6,425		6,433
Factored receivables		2,850		2,850		1,694		572		572
Consumer		—		—		—		—		—
Mortgage warehouse		—		—		—		—		—
PCI		525		525		355		—		—
	$	5,411	$	5,448	$	2,946	$	7,794	$	8,027

The following table presents average impaired loans and interest recognized on impaired loans for the three months ended March 31, 2016 and 2015:

	Three Months Ended				Three Months Ended
	March 31, 2016				March 31, 2015
	Average		Interest		Average		Interest
(Dollars in thousands)	Impaired Loans		Recognized		Impaired Loans		Recognized
Commercial real estate	$	719	$	—	$	1,931	$	14
Construction, land development, land		—		—		—		—
1-4 family residential properties		628		1		691		28
Farmland		—		—		—		—
Commercial		10,109		100		7,030		163
Factored receivables		4,181		—		1,271		—
Consumer		18		—		—		—
Mortgage warehouse		—		—		—		—
PCI		974		—		459		—
	$	16,629	$	101	$	11,382	$	205

Schedule of Recorded Investment and Unpaid Principal Balances

The following table presents the unpaid principal and recorded investment for loans at March 31, 2016 and December 31, 2015. The difference between the unpaid principal balance and recorded investment is principally associated with (1) premiums and discounts associated with acquisition date fair value adjustments on acquired loans (both PCI and non-PCI), (2) net deferred origination costs and fees, and (3) previous charge-offs.

(Dollars in thousands)	Recorded		Unpaid
March 31, 2016	Investment		Principal		Difference
Commercial real estate	$	293,485	$	300,151	$	(6,666	)
Construction, land development, land		41,622		43,111		(1,489	)
1-4 family residential properties		76,973		79,488		(2,515	)
Farmland		33,250		33,208		42
Commercial		509,433		510,283		(850	)
Factored receivables		199,532		200,621		(1,089	)
Consumer		13,530		13,551		(21	)
Mortgage warehouse		78,015		78,015		—
	$	1,245,840	$	1,258,428	$	(12,588	)

(Dollars in thousands)	Recorded		Unpaid
December 31, 2015	Investment		Principal		Difference
Commercial	$	291,819	$	299,272	$	(7,453	)
Construction, land development, land		43,876		45,376		(1,500	)
1-4 family residential properties		78,244		81,141		(2,897	)
Farmland		33,573		33,533		40
Commercial		495,356		496,719		(1,363	)
Factored receivables		215,088		216,201		(1,113	)
Consumer		13,050		13,072		(22	)
Mortgage warehouse		120,879		120,879		—
	$	1,291,885	$	1,306,193	$	(14,308	)

Summary of Contractually Past Due and Nonaccrual Loans

Past Due and Nonaccrual Loans

The following is a summary of contractually past due and nonaccrual loans at March 31, 2016 and December 31, 2015:

			Past Due 90
(Dollars in thousands)	30-89 Days		Days or More
March 31, 2016	Past Due		Still Accruing		Nonaccrual		Total
Commercial real estate	$	148	$	—	$	714	$	862
Construction, land development, land		10,813		—		—		10,813
1-4 family residential properties		574		—		615		1,189
Farmland		305		—		—		305
Commercial		5,167		—		6,719		11,886
Factored receivables		9,894		2,553		—		12,447
Consumer		247		—		37		284
Mortgage warehouse		—		—		—		—
PCI		3		—		7,127		7,130
	$	27,151	$	2,553	$	15,212	$	44,916

			Past Due 90
(Dollars in thousands)	30-89 Days		Days or More
December 31, 2015	Past Due		Still Accruing		Nonaccrual		Total
Commercial real estate	$	693	$	—	$	673	$	1,366
Construction, land development, land		—		—		—		—
1-4 family residential properties		909		9		533		1,451
Farmland		—		—		—		—
Commercial		3,704		—		2,021		5,725
Factored receivables		12,379		1,931		—		14,310
Consumer		286		—		—		286
Mortgage warehouse		—		—		—		—
PCI		1,092		—		6,867		7,959
	$	19,063	$	1,940	$	10,094	$	31,097

Schedule of Nonperforming Loans

The following table presents information regarding nonperforming loans at the dates indicated:

(Dollars in thousands)	March 31, 2016		December 31, 2015
Nonaccrual loans⁽¹⁾	$	15,212	$	10,094
Factored receivables greater than 90 days past due		2,553		1,931
Troubled debt restructurings accruing interest		3,465		1,330
	$	21,230	$	13,355

⁽¹⁾ Includes troubled debt restructurings of $2,767,000 and $53,000 at March 31, 2016 and December 31, 2015, respectively.

Summary of Risk Category of Loans

As of March 31, 2016 and December 31, 2015, based on the most recent analysis performed, the risk category of loans is as follows:

(Dollars in thousands)
March 31, 2016	Pass		Substandard		Doubtful		PCI		Total
Commercial real estate	$	286,997	$	1,375	$	—	$	5,113	$	293,485
Construction, land development, land		40,463		—		—		1,159		41,622
1-4 family residential		73,608		624		—		2,741		76,973
Farmland		33,250		—		—		—		33,250
Commercial		478,078		28,262		—		3,093		509,433
Factored receivables		196,164		2,191		1,177		—		199,532
Consumer		13,491		39		—		—		13,530
Mortgage warehouse		78,015		—		—		—		78,015
	$	1,200,066	$	32,491	$	1,177	$	12,106	$	1,245,840

(Dollars in thousands)
December 31, 2015	Pass		Substandard		Doubtful		PCI		Total
Commercial real estate	$	284,753	$	1,977	$	—	$	5,089	$	291,819
Construction, land development, land		42,499		—		—		1,377		43,876
1-4 family residential		73,838		1,494		—		2,912		78,244
Farmland		33,573		—		—		—		33,573
Commercial		470,208		21,295		—		3,853		495,356
Factored receivables		212,588		1,019		1,481		—		215,088
Consumer		13,050		—		—		—		13,050
Mortgage warehouse		120,879		—		—		—		120,879
	$	1,251,388	$	25,785	$	1,481	$	13,231	$	1,291,885

Schedule of Loans Modified as Troubled Debt Restructurings

The following table presents loans modified as troubled debt restructurings that occurred during the three months ended March 31, 2016. There were no loans modified as troubled debt restructurings during the three months ended March 31, 2015.

Pre-Modification

Post-Modification

Outstanding

(Dollars in thousands)

Number of

Recorded

March 31, 2016

Loans

Investment

Commercial

5,730

Schedule of Outstanding Contractually Required Principal and Interest and Carrying Amount of PCI Loans Receivable

The outstanding contractually required principal and interest and the carrying amount of these loans included in the balance sheet amounts of loans receivable at March 31, 2016 and December 31, 2015, are as follows:

	March 31,		December 31,
(Dollars in thousands)	2016		2015
Contractually required principal and interest:
Real estate loans	$	17,229	$	17,800
Commercial loans		4,407		5,335
Outstanding contractually required principal and interest	$	21,636	$	23,135
Gross carrying amount included in loans receivable	$	12,106	$	13,231

Schedule of Changes in Accretable Yield for the PCI Loans

The changes in accretable yield during the three months ended March 31, 2016 and 2015 in regard to loans transferred at acquisition for which it was probable that all contractually required payments would not be collected are as follows:

	Three Months Ended March 31,
(Dollars in thousands)	2016			2015
Accretable yield, beginning balance	$	2,594		$	4,977
Additions		—			—
Accretion		(517	)		(429	)
Reclassification from nonaccretable to accretable yield		—			—
Disposals		(13	)		(52	)
Accretable yield, ending balance	$	2,064		$	4,496