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Purchased Credit Impaired ("PCI") Loans
 6 Months Ended
Jun. 30, 2017
Receivables [Abstract]  
Purchase Credit Impaired (PCI) Loans
The following tables refer to loans accounted for using ASC 310-30 (purchased credit impaired loans):

Below is a summary of PCI loans by category at June 30, 2017 and December 31, 2016:
 
 
June 30, 2017
 
December 31, 2016
(in thousands)
Weighted-
Average
Risk Rating1
Recorded
Investment
PCI Loans
 
Weighted-
Average
Risk Rating1
Recorded
Investment
PCI Loans
Commercial and industrial
6.02
$
4,059

 
5.87
$
3,523

Real estate:
 
 
 
 
 
    Commercial - investor owned
7.35
46,180

 
6.95
8,162

    Commercial - owner occupied
6.55
12,743

 
6.39
11,863

    Construction and land development
5.84
7,883

 
5.80
4,365

    Residential
6.15
13,370

 
5.64
11,792

Total real estate loans
 
80,176

 
 
36,182

Consumer and other
2.81
65

 
1.64
64

    Purchased credit impaired loans
 
$
84,300

 
 
$
39,769

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 June 30, 2017 and December 31, 2016 is shown below:

 
June 30, 2017
(in thousands)
30-89 Days
 Past Due
 
90 or More
Days
Past Due
 
Total
Past Due
 
Current
 
Total
    Commercial and industrial
$
—

 
$
50

 
$
50

 
$
4,009

 
$
4,059

    Real estate:
 
 
 
 
 
 
 
 
 
       Commercial - investor owned
4,052

 
—

 
4,052

 
42,128

 
46,180

       Commercial - owner occupied
653

 
401

 
1,054

 
11,689

 
12,743

       Construction and land development
—

 
366

 
366

 
7,517

 
7,883

       Residential
400

 
1,303

 
1,703

 
11,667

 
13,370

    Consumer and other
—

 
—

 
—

 
65

 
65

          Total
$
5,105

 
$
2,120


$
7,225


$
77,075


$
84,300


 
December 31, 2016
(in thousands)
30-89 Days
 Past Due
 
90 or More
Days
Past Due
 
Total
Past Due
 
Current
 
Total
    Commercial and industrial
$
—

 
$
—

 
$
—

 
$
3,523

 
$
3,523

    Real estate:
 
 
 
 
 
 
 
 
 
       Commercial - investor owned
—

 
—

 
—

 
8,162

 
8,162

       Commercial - owner occupied
—

 
—

 
—

 
11,863

 
11,863

       Construction and land development
—

 
—

 
—

 
4,365

 
4,365

       Residential
169

 
51

 
220

 
11,572

 
11,792

    Consumer and other
—

 
—

 
—

 
64

 
64

          Total
$
169

 
$
51


$
220


$
39,549


$
39,769



The following table is a rollforward of PCI loans, net of the allowance for loan losses, for the six months ended June 30, 2017 and 2016.

(in thousands)
Contractual Cashflows
 
Non-accretable Difference
 
Accretable Yield
 
Carrying Amount
Balance December 31, 2016
$
66,003

 
$
18,902

 
$
13,176

 
$
33,925

Acquisitions
68,763

 
14,296

 
5,312

 
49,155

Principal reductions and interest payments
(10,781
)
 
—

 
—

 
(10,781
)
Accretion of loan discount
—

 
—

 
(3,534
)
 
3,534

Changes in contractual and expected cash flows due to remeasurement
5,641

 
(1,383
)
 
1,328

 
5,696

Reductions due to disposals
(5,070
)
 
(1,317
)
 
(1,398
)
 
(2,355
)
Balance June 30, 2017
$
124,556

 
$
30,498


$
14,884


$
79,174

 
 
 
 
 
 
 
 
Balance December 31, 2015
$
116,689

 
$
26,765

 
$
25,341

 
$
64,583

Principal reductions and interest payments
(11,768
)
 
—

 
—

 
(11,768
)
Accretion of loan discount
—

 
—

 
(3,431
)
 
3,431

Changes in contractual and expected cash flows due to remeasurement
6,144

 
1,522

 
(788
)
 
5,410

Reductions due to disposals
(21,663
)
 
(4,912
)
 
(3,073
)
 
(13,678
)
Balance June 30, 2016
$
89,402

 
$
23,375


$
18,049


$
47,978



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 $112.6 million and $54.6 million as of June 30, 2017, and December 31, 2016, respectively.