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Loans and Allowance for Loan and Lease Losses | 9 Months Ended
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Sep. 30, 2016
Loans And Leases Receivable Disclosure [Abstract] |
Loans and Allowance for Loan and Lease Losses | NOTE 4 - LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES Loans at September 30, 2016 and December 31, 2015 consisted of the following:
|  | September 30, |  |  | December 31, |
(Dollars in thousands) |  | 2016 |  |  | 2015 |
Commercial real estate |  | $ | 420,742 |  |  | $ | 291,819 |
Construction, land development, land |  |  | 101,169 |  |  |  | 43,876 |
1-4 family residential properties |  |  | 108,721 |  |  |  | 78,244 |
Farmland |  |  | 139,109 |  |  |  | 33,573 |
Commercial |  |  | 777,806 |  |  |  | 495,356 |
Factored receivables |  |  | 213,955 |  |  |  | 215,088 |
Consumer |  |  | 25,602 |  |  |  | 13,050 |
Mortgage warehouse |  |  | 172,751 |  |  |  | 120,879 |
Total |  |  | 1,959,855 |  |  |  | 1,291,885 |
Allowance for loan and lease losses |  |  | (14,912 | ) |  |  | (12,567 | )
|  | $ | 1,944,943 |  |  | $ | 1,279,318 |
Total loans include net deferred origination and factoring fees totaling $2,070,000 and $1,218,000 at September 30, 2016 and December 31, 2015, respectively. Loans with carrying amounts of $470,565,000 and $280,289,000 at September 30, 2016 and December 31, 2015, respectively, were pledged to secure Federal Home Loan Bank borrowing capacity. During the three and nine months ended September 30, 2016, loans with a carrying amount of $14,394,000 and $18,513,000, respectively, were transferred to loans held for sale at their fair value of $14,642,000 and $18,680,000, respectively, as the Company made the decision to sell the loans. The gains on transfer of loans to loans held for sale of $248,000 and $167,000 for the three and nine months ended September 30, 2016, respectively, were recorded as other noninterest income in the consolidated statements of income. These loans were subsequently sold or are pending final settlement, resulting in proceeds equal to their fair values at the time of transfer. No loan transfers were recorded during the nine months ended September 30, 2015. Allowance for Loan and Lease Losses The activity in the allowance for loan and lease losses (“ALLL”) during the three and nine months ended September 30, 2016 and 2015 is as follows:
(Dollars in thousands) |  | Beginning |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Ending |
Three months ended September 30, 2016 |  | Balance |  |  | Provision |  |  | Charge-offs |  |  | Recoveries |  |  | Balance |
Commercial real estate |  | $ | 1,792 |  |  | $ | 123 |  |  | $ | (4 | ) |  | $ | 1 |  |  | $ | 1,912 |
Construction, land development, land |  |  | 181 |  |  |  | 44 |  |  |  | — |  |  |  | 7 |  |  |  | 232 |
1-4 family residential properties |  |  | 259 |  |  |  | (10 | ) |  |  | — |  |  |  | 6 |  |  |  | 255 |
Farmland |  |  | 143 |  |  |  | (22 | ) |  |  | — |  |  |  | — |  |  |  | 121 |
Commercial |  |  | 6,697 |  |  |  | 2,521 |  |  |  | (1,615 | ) |  |  | 217 |  |  |  | 7,820 |
Factored receivables |  |  | 4,204 |  |  |  | (7 | ) |  |  | (285 | ) |  |  | 33 |  |  |  | 3,945 |
Consumer |  |  | 293 |  |  |  | 114 |  |  |  | (68 | ) |  |  | 29 |  |  |  | 368 |
Mortgage warehouse |  |  | 203 |  |  |  | 56 |  |  |  | — |  |  |  | — |  |  |  | 259 |
|  | $ | 13,772 |  |  | $ | 2,819 |  |  | $ | (1,972 | ) |  | $ | 293 |  |  | $ | 14,912 |
(Dollars in thousands) |  | Beginning |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Ending |
Three months ended September 30, 2015 |  | Balance |  |  | Provision |  |  | Charge-offs |  |  | Recoveries |  |  | Balance |
Commercial real estate |  | $ | 1,214 |  |  | $ | 189 |  |  | $ | (9 | ) |  | $ | 1 |  |  | $ | 1,395 |
Construction, land development, land |  |  | 346 |  |  |  | 97 |  |  |  | — |  |  |  | — |  |  |  | 443 |
1-4 family residential properties |  |  | 251 |  |  |  | 44 |  |  |  | (20 | ) |  |  | 4 |  |  |  | 279 |
Farmland |  |  | 28 |  |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | 29 |
Commercial |  |  | 5,064 |  |  |  | 210 |  |  |  | — |  |  |  | 34 |  |  |  | 5,308 |
Factored receivables |  |  | 4,135 |  |  |  | (475 | ) |  |  | (72 | ) |  |  | 21 |  |  |  | 3,609 |
Consumer |  |  | 160 |  |  |  | 107 |  |  |  | (97 | ) |  |  | 55 |  |  |  | 225 |
Mortgage warehouse |  |  | 264 |  |  |  | (8 | ) |  |  | — |  |  |  | — |  |  |  | 256 |
|  | $ | 11,462 |  |  | $ | 165 |  |  | $ | (198 | ) |  | $ | 115 |  |  | $ | 11,544 |
(Dollars in thousands) |  | Beginning |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Ending |
Nine months ended September 30, 2016 |  | Balance |  |  | Provision |  |  | Charge-offs |  |  | Recoveries |  |  | Balance |
Commercial real estate |  | $ | 1,489 |  |  | $ | 413 |  |  | $ | (5 | ) |  | $ | 15 |  |  | $ | 1,912 |
Construction, land development, land |  |  | 367 |  |  |  | (142 | ) |  |  | — |  |  |  | 7 |  |  |  | 232 |
1-4 family residential properties |  |  | 274 |  |  |  | (38 | ) |  |  | (63 | ) |  |  | 82 |  |  |  | 255 |
Farmland |  |  | 134 |  |  |  | (13 | ) |  |  | — |  |  |  | — |  |  |  | 121 |
Commercial |  |  | 5,276 |  |  |  | 3,680 |  |  |  | (1,784 | ) |  |  | 648 |  |  |  | 7,820 |
Factored receivables |  |  | 4,509 |  |  |  | 77 |  |  |  | (743 | ) |  |  | 102 |  |  |  | 3,945 |
Consumer |  |  | 216 |  |  |  | 313 |  |  |  | (223 | ) |  |  | 62 |  |  |  | 368 |
Mortgage warehouse |  |  | 302 |  |  |  | (43 | ) |  |  | — |  |  |  | — |  |  |  | 259 |
|  | $ | 12,567 |  |  | $ | 4,247 |  |  | $ | (2,818 | ) |  | $ | 916 |  |  | $ | 14,912 |
(Dollars in thousands) |  | Beginning |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Ending |
Nine months ended September 30, 2015 |  | Balance |  |  | Provision |  |  | Charge-offs |  |  | Recoveries |  |  | Balance |
Commercial real estate |  | $ | 533 |  |  | $ | 962 |  |  | $ | (152 | ) |  | $ | 52 |  |  | $ | 1,395 |
Construction, land development, land |  |  | 333 |  |  |  | 110 |  |  |  | — |  |  |  | — |  |  |  | 443 |
1-4 family residential properties |  |  | 215 |  |  |  | 163 |  |  |  | (203 | ) |  |  | 104 |  |  |  | 279 |
Farmland |  |  | 19 |  |  |  | 10 |  |  |  | — |  |  |  | — |  |  |  | 29 |
Commercial |  |  | 4,003 |  |  |  | 1,312 |  |  |  | (47 | ) |  |  | 40 |  |  |  | 5,308 |
Factored receivables |  |  | 3,462 |  |  |  | 529 |  |  |  | (451 | ) |  |  | 69 |  |  |  | 3,609 |
Consumer |  |  | 140 |  |  |  | 147 |  |  |  | (244 | ) |  |  | 182 |  |  |  | 225 |
Mortgage warehouse |  |  | 138 |  |  |  | 118 |  |  |  | — |  |  |  | — |  |  |  | 256 |
|  | $ | 8,843 |  |  | $ | 3,351 |  |  | $ | (1,097 | ) |  | $ | 447 |  |  | $ | 11,544 |
The following table presents loans individually and collectively evaluated for impairment, as well as purchased credit impaired (“PCI”) loans, and their respective ALLL allocations:
(Dollars in thousands) |  | Loan Evaluation |  |  | ALLL Allocations |
September 30, 2016 |  | Individually |  |  | Collectively |  |  | PCI |  |  | Total loans |  |  | Individually |  |  | Collectively |  |  | PCI |  |  | Total ALLL |
Commercial real estate |  | $ | 676 |  |  | $ | 405,812 |  |  | $ | 14,254 |  |  | $ | 420,742 |  |  | $ | 100 |  |  | $ | 1,371 |  |  | $ | 441 |  |  | $ | 1,912 |
Construction, land development, land |  |  | 276 |  |  |  | 96,943 |  |  |  | 3,950 |  |  |  | 101,169 |  |  |  | 25 |  |  |  | 207 |  |  |  | — |  |  |  | 232 |
1-4 family residential properties |  |  | 1,139 |  |  |  | 105,114 |  |  |  | 2,468 |  |  |  | 108,721 |  |  |  | 1 |  |  |  | 254 |  |  |  | — |  |  |  | 255 |
Farmland |  |  | — |  |  |  | 139,109 |  |  |  | — |  |  |  | 139,109 |  |  |  | — |  |  |  | 121 |  |  |  | — |  |  |  | 121 |
Commercial |  |  | 30,059 |  |  |  | 738,076 |  |  |  | 9,671 |  |  |  | 777,806 |  |  |  | 2,851 |  |  |  | 4,969 |  |  |  | — |  |  |  | 7,820 |
Factored receivables |  |  | 3,812 |  |  |  | 210,143 |  |  |  | — |  |  |  | 213,955 |  |  |  | 1,520 |  |  |  | 2,425 |  |  |  | — |  |  |  | 3,945 |
Consumer |  |  | 55 |  |  |  | 25,547 |  |  |  | — |  |  |  | 25,602 |  |  |  | — |  |  |  | 368 |  |  |  | — |  |  |  | 368 |
Mortgage warehouse |  |  | — |  |  |  | 172,751 |  |  |  | — |  |  |  | 172,751 |  |  |  | — |  |  |  | 259 |  |  |  | — |  |  |  | 259 |
|  | $ | 36,017 |  |  | $ | 1,893,495 |  |  | $ | 30,343 |  |  | $ | 1,959,855 |  |  | $ | 4,497 |  |  | $ | 9,974 |  |  | $ | 441 |  |  | $ | 14,912 |
(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 |
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 |
September 30, 2016 |  | Investment |  |  | Principal |  |  | Allowance |  |  | Investment |  |  | Principal |
Commercial real estate |  | $ | 517 |  |  | $ | 517 |  |  | $ | 100 |  |  | $ | 159 |  |  | $ | 196 |
Construction, land development, land |  |  | 276 |  |  |  | 276 |  |  |  | 25 |  |  |  | — |  |  |  | — |
1-4 family residential properties |  |  | 9 |  |  |  | 16 |  |  |  | 1 |  |  |  | 1,130 |  |  |  | 1,295 |
Farmland |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial |  |  | 7,029 |  |  |  | 7,116 |  |  |  | 2,851 |  |  |  | 23,030 |  |  |  | 23,000 |
Factored receivables |  |  | 3,015 |  |  |  | 3,015 |  |  |  | 1,520 |  |  |  | 797 |  |  |  | 797 |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 55 |  |  |  | 55 |
Mortgage warehouse |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
PCI |  |  | 1,442 |  |  |  | 1,154 |  |  |  | 441 |  |  |  | — |  |  |  | — |
|  | $ | 12,288 |  |  | $ | 12,094 |  |  | $ | 4,938 |  |  | $ | 25,171 |  |  | $ | 25,343 |
|  | 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 and nine months ended September 30, 2016 and 2015:
|  | Three Months Ended |  |  | Three Months Ended |
|  | September 30, 2016 |  |  | September 30, 2015 |
|  | Average |  |  | Interest |  |  | Average |  |  | Interest |
(Dollars in thousands) |  | Impaired Loans |  |  | Recognized |  |  | Impaired Loans |  |  | Recognized |
Commercial real estate |  | $ | 682 |  |  | $ | — |  |  | $ | 1,926 |  |  | $ | 1 |
Construction, land development, land |  |  | 276 |  |  |  | — |  |  |  | — |  |  |  | — |
1-4 family residential properties |  |  | 1,030 |  |  |  | 1 |  |  |  | 433 |  |  |  | 9 |
Farmland |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial |  |  | 21,648 |  |  |  | 163 |  |  |  | 4,833 |  |  |  | 80 |
Factored receivables |  |  | 3,509 |  |  |  | — |  |  |  | 1,957 |  |  |  | — |
Consumer |  |  | 43 |  |  |  | — |  |  |  | — |  |  |  | — |
Mortgage warehouse |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
PCI |  |  | 1,442 |  |  |  | — |  |  |  | 721 |  |  |  | — |
|  | $ | 28,630 |  |  | $ | 164 |  |  | $ | 9,870 |  |  | $ | 90 |
|  | Nine Months Ended |  |  | Nine Months Ended |
|  | September 30, 2016 |  |  | September 30, 2015 |
|  | Average |  |  | Interest |  |  | Average |  |  | Interest |
(Dollars in thousands) |  | Impaired Loans |  |  | Recognized |  |  | Impaired Loans |  |  | Recognized |
Commercial real estate |  | $ | 700 |  |  | $ | — |  |  | $ | 1,928 |  |  | $ | 4 |
Construction, land development, land |  |  | 138 |  |  |  | 2 |  |  |  | — |  |  |  | — |
1-4 family residential properties |  |  | 879 |  |  |  | 9 |  |  |  | 647 |  |  |  | 32 |
Farmland |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial |  |  | 18,987 |  |  |  | 677 |  |  |  | 4,992 |  |  |  | 119 |
Factored receivables |  |  | 3,617 |  |  |  | — |  |  |  | 1,958 |  |  |  | — |
Consumer |  |  | 26 |  |  |  | 2 |  |  |  | — |  |  |  | — |
Mortgage warehouse |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
PCI |  |  | 983 |  |  |  | — |  |  |  | 263 |  |  |  | — |
|  | $ | 25,330 |  |  | $ | 690 |  |  | $ | 9,788 |  |  | $ | 155 |
The following table presents the unpaid principal and recorded investment for loans at September 30, 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) and (2) net deferred origination costs and fees.
(Dollars in thousands) |  | Recorded |  |  | Unpaid |  |  |  |  |
September 30, 2016 |  | Investment |  |  | Principal |  |  | Difference |
Commercial real estate |  | $ | 420,742 |  |  | $ | 426,843 |  |  | $ | (6,101 | )
Construction, land development, land |  |  | 101,169 |  |  |  | 104,591 |  |  |  | (3,422 | )
1-4 family residential properties |  |  | 108,721 |  |  |  | 110,729 |  |  |  | (2,008 | )
Farmland |  |  | 139,109 |  |  |  | 140,117 |  |  |  | (1,008 | )
Commercial |  |  | 777,806 |  |  |  | 784,494 |  |  |  | (6,688 | )
Factored receivables |  |  | 213,955 |  |  |  | 215,242 |  |  |  | (1,287 | )
Consumer |  |  | 25,602 |  |  |  | 25,742 |  |  |  | (140 | )
Mortgage warehouse |  |  | 172,751 |  |  |  | 172,751 |  |  |  | — |
|  | $ | 1,959,855 |  |  | $ | 1,980,509 |  |  | $ | (20,654 | )
|  | 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 | )
At September 30, 2016 and December 31, 2015, the Company had $22,629,000 and $21,188,000, respectively, of customer reserves associated with factored receivables. These amounts represent customer reserves held to settle any payment disputes or collection shortfalls, may be used to pay customers’ obligations to various third parties as directed by the customer, are periodically released to or withdrawn by customers, and are reported as deposits in the consolidated balance sheets. Past Due and Nonaccrual Loans The following is a summary of contractually past due and nonaccrual loans at September 30, 2016 and December 31, 2015:
|  |  |  |  |  | Past Due 90 |  |  |  |  |  |  |  |  |
(Dollars in thousands) |  | 30-89 Days |  |  | Days or More |  |  |  |  |  |  |  |  |
September 30, 2016 |  | Past Due |  |  | Still Accruing |  |  | Nonaccrual |  |  | Total |
Commercial real estate |  | $ | 625 |  |  | $ | 210 |  |  | $ | 676 |  |  | $ | 1,511 |
Construction, land development, land |  |  | 199 |  |  |  | 156 |  |  |  | 276 |  |  |  | 631 |
1-4 family residential properties |  |  | 1,043 |  |  |  | 24 |  |  |  | 1,083 |  |  |  | 2,150 |
Farmland |  |  | 996 |  |  |  | — |  |  |  | — |  |  |  | 996 |
Commercial |  |  | 18,411 |  |  |  | 556 |  |  |  | 25,019 |  |  |  | 43,986 |
Factored receivables |  |  | 10,185 |  |  |  | 2,063 |  |  |  | — |  |  |  | 12,248 |
Consumer |  |  | 628 |  |  |  | 45 |  |  |  | 55 |  |  |  | 728 |
Mortgage warehouse |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
PCI |  |  | 2,127 |  |  |  | 150 |  |  |  | 11,101 |  |  |  | 13,378 |
|  | $ | 34,214 |  |  | $ | 3,204 |  |  | $ | 38,210 |  |  | $ | 75,628 |
|  |  |  |  |  | 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 |
The following table presents information regarding nonperforming loans at the dates indicated:
(Dollars in thousands) |  | September 30, 2016 |  |  | December 31, 2015 |
Nonaccrual loans(1) |  | $ | 38,210 |  |  | $ | 10,094 |
Factored receivables greater than 90 days past due |  |  | 2,063 |  |  |  | 1,931 |
Troubled debt restructurings accruing interest |  |  | 3,876 |  |  |  | 1,330 |
|  | $ | 44,149 |  |  | $ | 13,355 |
| (1) | Includes troubled debt restructurings of $12,179,000 and $53,000 at September 30, 2016 and December 31, 2015, respectively.
Credit Quality Information The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, including: current collateral and financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes every loan and is performed on a regular basis. Large groups of smaller balance homogeneous loans, such as consumer loans, are analyzed primarily based on payment status. The Company uses the following definitions for risk ratings: Pass: Loans classified as pass are loans with low to average risk and not otherwise classified as substandard or doubtful. Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. PCI: At acquisition, PCI loans had the characteristics of substandard loans and it was probable, at acquisition, that all contractually required principal and interest payments would not be collected. The Company evaluates these loans on a projected cash flow basis with this evaluation performed quarterly. As of September 30, 2016 and December 31, 2015, based on the most recent analysis performed, the risk category of loans is as follows:
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
September 30, 2016 |  | Pass |  |  | Substandard |  |  | Doubtful |  |  | PCI |  |  | Total |
Commercial real estate |  | $ | 400,044 |  |  | $ | 6,444 |  |  | $ | — |  |  | $ | 14,254 |  |  | $ | 420,742 |
Construction, land development, land |  |  | 96,943 |  |  |  | 276 |  |  |  | — |  |  |  | 3,950 |  |  |  | 101,169 |
1-4 family residential |  |  | 104,888 |  |  |  | 1,365 |  |  |  | — |  |  |  | 2,468 |  |  |  | 108,721 |
Farmland |  |  | 130,687 |  |  |  | 8,422 |  |  |  | — |  |  |  | — |  |  |  | 139,109 |
Commercial |  |  | 728,675 |  |  |  | 39,460 |  |  |  | — |  |  |  | 9,671 |  |  |  | 777,806 |
Factored receivables |  |  | 211,271 |  |  |  | 1,303 |  |  |  | 1,381 |  |  |  | — |  |  |  | 213,955 |
Consumer |  |  | 25,545 |  |  |  | 57 |  |  |  | — |  |  |  | — |  |  |  | 25,602 |
Mortgage warehouse |  |  | 172,751 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 172,751 |
|  | $ | 1,870,804 |  |  | $ | 57,327 |  |  | $ | 1,381 |  |  | $ | 30,343 |  |  | $ | 1,959,855 |
(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 |
Troubled Debt Restructurings The Company had a recorded investment in troubled debt restructurings of $16,055,000 and $1,383,000 as of September 30, 2016 and December 31, 2015, respectively. The following table presents loans modified as troubled debt restructurings that occurred during the nine months ended September 30, 2016 and 2015:
|  |  |  |  |  | Pre-Modification |  |  | Post-Modification |
|  |  |  |  |  | Outstanding |  |  | Outstanding |
(Dollars in thousands) |  | Number of |  |  | Recorded |  |  | Recorded |
September 30, 2016 |  | Loans |  |  | Investment |  |  | Investment |
Commercial |  |  | 24 |  |  | $ | 15,663 |  |  | $ | 15,663 |
|  |  |  |  |  | Pre-Modification |  |  | Post-Modification |
|  |  |  |  |  | Outstanding |  |  | Outstanding |
(Dollars in thousands) |  | Number of |  |  | Recorded |  |  | Recorded |
September 30, 2015 |  | Loans |  |  | Investment |  |  | Investment |
Commercial |  |  | 2 |  |  | $ | 841 |  |  | $ | 841 |
As of September 30, 2016, there have been no defaults on any loans that were modified as troubled debt restructurings during the preceding twelve months. Default is determined at 90 or more days past due. The modifications primarily related to extending the amortization periods of the loans. The Company did not grant principal reductions on any restructured loans. Purchased Credit Impaired Loans The Company has loans that were acquired, for which there was, at acquisition, evidence of deterioration of credit quality since origination and for which it was probable, at acquisition, that all contractually required payments would not be collected. The outstanding contractually required principal and interest and the carrying amount of these loans included in the balance sheet amounts of loans at September 30, 2016 and December 31, 2015, are as follows:
|  | September 30, |  |  | December 31, |
|  | 2016 |  |  | 2015 |
Contractually required principal and interest: |  |  |  |  |  |  |  |
Real estate loans |  | $ | 29,571 |  |  | $ | 17,800 |
Commercial loans |  |  | 11,564 |  |  |  | 5,335 |
Outstanding contractually required principal and interest |  | $ | 41,135 |  |  | $ | 23,135 |
Gross carrying amount included in loans receivable |  | $ | 30,343 |  |  | $ | 13,231 |
The changes in accretable yield during the three and nine months ended September 30, 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 September 30, |  |  | Nine Months Ended September 30, |
|  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
Accretable yield, beginning balance |  | $ | 1,192 |  |  | $ | 3,349 |  |  | $ | 2,593 |  |  | $ | 4,977 |
Additions |  |  | 4,124 |  |  |  | — |  |  |  | 4,124 |  |  |  | — |
Accretion |  |  | (417 | ) |  |  | (1,056 | ) |  |  | (2,451 | ) |  |  | (3,070 | )
Reclassification from nonaccretable to accretable yield |  |  | — |  |  |  | 195 |  |  |  | 646 |  |  |  | 780 |
Disposals |  |  | — |  |  |  | — |  |  |  | (13 | ) |  |  | (199 | )
Accretable yield, ending balance |  | $ | 4,899 |  |  | $ | 2,488 |  |  | $ | 4,899 |  |  | $ | 2,488 |

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