Purchase Credit Impaired (PCI) Loans |
Below is a summary of PCI loans by category at September 30, 2019 and December 31, 2018: | | | | | | | | | | | | September 30, 2019 | | December 31, 2018 | (in thousands) | Weighted- Average Risk Rating1 | Recorded Investment PCI Loans | | Weighted- Average Risk Rating1 | Recorded Investment PCI Loans | Commercial and industrial | 5.77 | $ | 15,773 |
| | 6.09 | $ | 2,159 |
| Real estate: | | | | | | Commercial - investor owned | 7.04 | 39,329 |
| | 7.19 | 23,939 |
| Commercial - owner occupied | 6.58 | 20,435 |
| | 7.39 | 9,669 |
| Construction and land development | 5.75 | 7,847 |
| | 6.03 | 4,548 |
| Residential | 6.31 | 12,011 |
| | 6.40 | 6,082 |
| Total real estate loans | | 79,622 |
| | | 44,238 |
| Consumer and other | 5.54 | 228 |
| | 2.18 | 4 |
| Total | | $ | 95,623 |
| | | $ | 46,401 |
| 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, 2019 and December 31, 2018, is shown below:
| | | | | | | | | | | | | | | | | | | | | | September 30, 2019 | (in thousands) | 30-89 Days Past Due | | 90 or More Days Past Due | | Total Past Due | | Current | | Total | Commercial and industrial | $ | 922 |
| | $ | 532 |
| | $ | 1,454 |
| | $ | 14,319 |
| | $ | 15,773 |
| Real estate: | | | | | | | | | | Commercial - investor owned | — |
| | 2,115 |
| | 2,115 |
| | 37,214 |
| | 39,329 |
| Commercial - owner occupied | — |
| | 1,023 |
| | 1,023 |
| | 19,412 |
| | 20,435 |
| Construction and land development | 14 |
| | 217 |
| | 231 |
| | 7,616 |
| | 7,847 |
| Residential | 703 |
| | 833 |
| | 1,536 |
| | 10,475 |
| | 12,011 |
| Consumer and other | — |
| | 35 |
| | 35 |
| | 193 |
| | 228 |
| Total | $ | 1,639 |
| | $ | 4,755 |
|
| $ | 6,394 |
|
| $ | 89,229 |
|
| $ | 95,623 |
|
| | | | | | | | | | | | | | | | | | | | | | December 31, 2018 | (in thousands) | 30-89 Days Past Due | | 90 or More Days Past Due | | Total Past Due | | Current | | Total | Commercial and industrial | $ | — |
| | $ | — |
| | $ | — |
| | $ | 2,159 |
| | $ | 2,159 |
| Real estate: | | | | | | | | | | Commercial - investor owned | 416 |
| | 88 |
| | 504 |
| | 23,435 |
| | 23,939 |
| Commercial - owner occupied | 591 |
| | 6,279 |
| | 6,870 |
| | 2,799 |
| | 9,669 |
| Construction and land development | — |
| | — |
| | — |
| | 4,548 |
| | 4,548 |
| Residential | 146 |
| | 37 |
| | 183 |
| | 5,899 |
| | 6,082 |
| Consumer and other | — |
| | — |
| | — |
| | 4 |
| | 4 |
| Total | $ | 1,153 |
| | $ | 6,404 |
|
| $ | 7,557 |
|
| $ | 38,844 |
|
| $ | 46,401 |
|
The following table is a roll forward of PCI loans, net of the allowance for loan losses, for the nine months ended September 30, 2019 and 2018. | | | | | | | | | | | | | | | | | (in thousands) | Contractual Cashflows | | Non-accretable Difference | | Accretable Yield | | Carrying Amount | Balance December 31, 2018 | $ | 73,157 |
| | $ | 15,299 |
| | $ | 12,638 |
| | $ | 45,220 |
| Acquisitions | 111,963 |
| | 13,542 |
| | 30,238 |
| | 68,183 |
| Principal reductions and interest payments | (33,548 | ) | | — |
| | — |
| | (33,548 | ) | Accretion of loan discount | — |
| | — |
| | (8,014 | ) | | 8,014 |
| Changes in contractual and expected cash flows due to remeasurement | 10,490 |
| | (2,057 | ) | | (86 | ) | | 12,633 |
| Reductions due to disposals | (9,121 | ) | | (3,345 | ) | | (40 | ) | | (5,736 | ) | Balance September 30, 2019 | $ | 152,941 |
| | $ | 23,439 |
|
| $ | 34,736 |
|
| $ | 94,766 |
| | | | | | | | | Balance December 31, 2017 | $ | 112,710 |
| | $ | 29,005 |
| | $ | 13,964 |
| | $ | 69,741 |
| Principal reductions and interest payments | (38,165 | ) | | — |
| | — |
| | (38,165 | ) | Accretion of loan discount | — |
| | — |
| | (5,118 | ) | | 5,118 |
| Changes in contractual and expected cash flows due to remeasurement | 4,341 |
| | (8,939 | ) | | 3,179 |
| | 10,101 |
| Balance September 30, 2018 | $ | 78,886 |
| | $ | 20,066 |
|
| $ | 12,025 |
|
| $ | 46,795 |
|
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 $121.5 million and $64.7 million as of September 30, 2019, and December 31, 2018, respectively.
|