PURCHASE CREDIT IMPAIRED ("PCI") LOANS

Below is a summary of PCI loans by category at December 31, 2014 and 2013:



	December 31, 2014			December 31, 2013
(in thousands)	Weighted- Average Risk Rating	Recorded Investment PCI Loans		Weighted- Average Risk Rating	Recorded Investment PCI Loans
Real estate loans:
Construction and land development	6.16	$	7,740	6.84	$	14,325
Commercial - Investor Owned	7.07	39,066		6.81	48,146
Commercial - Owner Occupied	6.35	22,695		6.75	32,525
Residential real estate	5.54	25,121		5.92	34,498
Total real estate loans		94,622			129,494
Commercial and industrial	6.57	4,012		6.87	9,271
Consumer and other	5.39	469		6.47	1,773
Purchase credit impaired loans		$	99,103		$	140,538

The aging of the recorded investment in past due PCI loans by portfolio class and category at December 31, 2014 and 2013 is shown below:



	December 31, 2014
(in thousands)	30-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial & Industrial	$	—	$	16	$	16	$	3,996	$	4,012
Real estate:
Commercial - Owner Occupied	—		2,759		2,759		19,936		22,695
Commercial - Investor Owned	878		6,484		7,362		31,704		39,066
Construction and Land Development	774		—		774		6,966		7,740
Residential	2,020		1,451		3,471		21,650		25,121
Consumer & Other	—		12		12		457		469
Total	$	3,672	$	10,722	$	14,394	$	84,709	$	99,103



	December 31, 2013
(in thousands)	30-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial & Industrial	$	397	$	573	$	970	$	8,301	$	9,271
Real Estate:
Commercial - Owner Occupied	255		6,595		6,850		25,675		32,525
Commercial - Investor Owned	5,143		3,167		8,310		39,836		48,146
Construction and Land Development	32		4,198		4,230		10,095		14,325
Residential	639		5,276		5,915		28,583		34,498
Consumer & Other	—		—		—		1,773		1,773
Total	$	6,466	$	19,809	$	26,275	$	114,263	$	140,538

The following table is a rollforward of PCI loans, net of the allowance for loan losses, for the twelve months ended December 31, 2014 and 2013.



(in thousands)	Contractual Cashflows			Non-accretable Difference			Accretable Yield			Carrying Amount
Balance January 1, 2014	$	266,068		$	87,438		$	53,530		$	125,100
Principal reductions and interest payments	(35,718		)	—			—			(35,718		)
Accretion of loan discount	—			—			(15,747		)	15,747
Changes in contractual and expected cash flows due to remeasurement	(2,170		)	(7,403		)	(3,234		)	8,467
Reductions due to disposals	(50,035		)	(14,316		)	(5,816		)	(29,903		)
Balance December 31, 2014	$	178,145		$	65,719		$	28,733		$	83,693

Balance January 1, 2013	$	386,966		$	118,627		$	78,768		$	189,571
Principal reductions and interest payments	(55,736		)	—			—			(55,736		)
Accretion of loan discount	—			—			(25,320		)	25,320
Changes in contractual and expected cash flows due to remeasurement	20,358			(2,667		)	15,538			7,487
Reductions due to disposals	(85,520		)	(28,522		)	(15,456		)	(41,542		)
Balance December 31, 2013	$	266,068		$	87,438		$	53,530		$	125,100

The accretable yield is accreted into interest income over the estimated life of the acquired loans using the effective

yield method.

A summary of activity in the FDIC loss share receivable for the twelve months ended December 31, 2014 and 2013 is as follows:



(in thousands)	December 31, 2014			December 31, 2013
Balance at beginning of period	$	34,319		$	61,475
Adjustments not reflected in income:
Cash received from the FDIC for covered assets	(9,605		)	(10,981		)
FDIC reimbursable losses, net	459			1,998
Adjustments reflected in income:
Amortization, net	(6,342		)	(13,931		)
Loan impairment	841			3,977
Reductions for payments on covered assets in excess of expected cash flows	(3,806		)	(8,219		)
Balance at end of period	$	15,866		$	34,319

Outstanding customer balances on PCI loans were $135.3 million and $201.7 million as of December 31, 2014, and December 31, 2013, respectively.

Due to continued favorable projections in expected cash flows, the Company now anticipates it will be required to pay the FDIC at the end of two of its loss share agreements. Accordingly, a contingent liability of $2.7 million has been recorded as of December 31, 2014 with $1.2 million of expense recorded through Other noninterest expense for the year ended December 31, 2014. See FDIC Loss Share Receivable and Clawback Liability in Note 1 - Summary of Significant Accounting Policies for additional information.