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Loans Held for Investment (Tables)
 9 Months Ended
Sep. 30, 2017
Receivables [Abstract]  
Schedule of components of loans held for investment
The following table sets forth the composition of our loan portfolio in dollar amounts at the dates indicated:
 
September 30, 2017
 
December 31, 2016
 
(dollars in thousands)
Business loans:
 
 
 
Commercial and industrial
$
763,091

 
$
563,169

Franchise
626,508

 
459,421

Commercial owner occupied (1)
805,137

 
454,918

SBA
107,211

 
88,994

Agriculture
86,466

 
—

    Total business loans
2,388,413

 
1,566,502

Real estate loans:
 

 
 
Commercial non-owner occupied
1,098,995

 
586,975

Multi-family
797,370

 
690,955

One-to-four family (2)
246,248

 
100,451

Construction
301,334

 
269,159

Farmland
140,581

 
—

Land
30,719

 
19,829

  Other loans
6,228

 
4,112

    Total real estate loans
2,621,475

 
1,671,481

      Gross loans held for investment (3)
5,009,888

 
3,237,983

Plus: Deferred loan origination costs/(fees) and premiums/(discounts), net
(571
)
 
3,630

        Loans held for investment
5,009,317

 
3,241,613

Allowance for loan losses
(27,143
)
 
(21,296
)
    Loans held for investment, net
$
4,982,174

 
$
3,220,317

 
 
 
 
Loans held for sale, at lower of cost or fair value
$
44,343

 
$
7,711

______________________________
(1) Secured by real estate.
(2) Includes second trust deeds.
(3) Total gross loans held for investment for September 30, 2017 are net of the unaccreted fair value purchase discounts of $21.6 million.
Summary of Company's investment in purchased credit impaired loans
The carrying amount of those loans is as follows:
 
September 30, 2017
 
December 31, 2016
 
(dollars in thousands)
Business loans:
 
 
 
Commercial and industrial
$
2,870

 
$
2,586

Commercial owner occupied
3,019

 
491

SBA
334

 
—

Real estate loans:
 

 
 

Commercial non-owner occupied
1,303

 
1,088

Multi-family
226

 
—

One-to-four family
257

 
1

   Construction/Land
973

 
—

   Other loans
221

 
393

Total purchase credit impaired
$
9,203

 
$
4,559
Summary of accretable yield on purchased credit impaired
The following table summarizes the accretable yield on the purchased credit impaired loans for the three months ended September 30, 2017, June 30, 2017 and September 30, 2016 and for the nine months ended September 30, 2017 and 2016:

 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30, 2017
 
June 30, 2017
 
September 30, 2016
 
September 30, 2017
 
September 30, 2016
 
 
(dollars in thousands)

Balance at the beginning of period
 
$
3,497

 
$
3,601

 
$
2,981

 
$
3,747

 
$
2,726

Additions
 
—

 
2,036

 
788

 
2,036

 
788

Accretion
 
(388
)
 
(712
)
 
(389
)
 
(1,729
)
 
(665
)
Payoffs
 
39

 
—

 
—

 
39

 
(27
)
Reclassification from (to) nonaccretable difference
 
—

 
(1,428
)
 
(1,301
)
 
(945
)
 
(743
)
Balance at the end of period
 
$
3,148

 
$
3,497

 
$
2,079

 
$
3,148

 
$
2,079
Summary of Company's investment in impaired loans
The following tables provide a summary of the Company’s investment in impaired loans as of the period indicated:

 
 
Impaired Loans
 
 
Contractual
Unpaid Principal Balance
 
Recorded Investment
 
With Specific Allowance
 
Without Specific Allowance
 
Specific Allowance for Impaired Loans
 
 
(dollars in thousands)
September 30, 2017
 
 
 
 
 
 
 
 
 
 
Business loans:
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
1,760

 
$
1,003

 
$
—

 
$
1,003

 
$
—

Commercial owner occupied
 
227

 
186

 
—

 
186

 
—

SBA
 
234

 
90

 
—

 
90

 
—

Real estate loans:
 
 
 
 
 
 
 
 
 
 
One-to-four family
 
135

 
103

 
—

 
103

 
—

Land
 
35

 
11

 
—

 
11

 
—

Totals
 
$
2,391

 
$
1,393

 
$
—

 
$
1,393

 
$
—

  

 
 
Impaired Loans
 
 
Contractual
Unpaid Principal Balance
 
Recorded Investment
 
With Specific Allowance
 
Without Specific Allowance
 
Specific Allowance for Impaired Loans
 
 
(dollars in thousands)
December 31, 2016
 
 

 
 

 
 

 
 

 
 

Business loans:
 
 

 
 

 
 

 
 

 
 

Commercial and industrial
 
$
1,990

 
$
250

 
$
250

 
$
—

 
$
250

Commercial owner occupied
 
847

 
436

 
—

 
436

 
—

SBA
 
3,865

 
316

 
—

 
316

 
—

Real estate loans:
 
 

 
 

 
 

 
 

 
 

One-to-four family
 
291

 
124

 
—

 
124

 
—

Land
 
36

 
15

 
—

 
15

 
—

Totals
 
$
7,029

 
$
1,141

 
$
250

 
$
891

 
$
250

  

 
 
Impaired Loans
 
 
Three Months Ended
 
 
September 30, 2017
 
June 30, 2017
 
September 30, 2016
 
 
Average Recorded Investment
 
Interest Income Recognized (1)
 
Average Recorded Investment
 
Interest Income Recognized (1)
 
Average Recorded Investment
 
Interest Income Recognized (1)
 
 
(dollars in thousands)
Business loans:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
446

 
$
7

 
$
7

 
$
—

 
$
1,387

 
$
16

Franchise
 
—

 
—

 
—

 
—

 
974

 
16

Commercial owner occupied
 
170

 
3

 
125

 
2

 
518

 
9

SBA
 
85

 
2

 
222

 
4

 
381

 
7

Real estate loans:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial non-owner occupied
 
342

 
7

 
—

 
—

 
2,487

 
42

One-to-four family
 
103

 
3

 
105

 
3

 
133

 
4

Land
 
11

 
—

 
12

 
1

 
17

 
1

Totals
 
$
1,157

 
$
22

 
$
471

 
$
10

 
$
5,897

 
$
95

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Cash basis and accrual basis is materially the same.


 
 
Impaired Loans
 
 
Nine Months Ended
 
 
September 30, 2017
 
September 30, 2016
 
 
Average Recorded Investment
 
Interest Income Recognized (1)
 
Average Recorded Investment
 
Interest Income Recognized (1)
 
 
(dollars in thousands)
Business loans:
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
218

 
$
12

 
$
682

 
$
28

Franchise
 
—

 
—

 
1,355

 
68

Commercial owner occupied
 
162

 
8

 
510

 
27

SBA
 
204

 
10

 
217

 
11

Real estate loans:
 
 
 
 
 
 
 
 
Commercial non-owner occupied
 
114

 
7

 
877

 
44

One-to-four family
 
108

 
9

 
259

 
13

Land
 
13

 
1

 
18

 
2

Totals
 
$
819

 
$
47

 
$
3,918

 
$
193

 
 
 
 
 
 
 
 
 
(1) Cash basis and accrual basis is materially the same.
Summary of additional detail on components of impaired loans
The following table provides additional detail on the components of impaired loans at the period end indicated:
 
 
September 30, 2017
 
December 31, 2016
 
(dollars in thousands)
Nonaccruing loans
$
515

 
$
1,141

Accruing loans
878

 
—

Total impaired loans
$
1,393

 
$
1,141
Summary of loan portfolio by the Company's internal risk grading system
The following tables stratify the loan portfolio by the Company’s internal risk grading as of the periods indicated:

 
 
Credit Risk Grades
 
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total Gross
Loans
September 30, 2017
 
(dollars in thousands)
Business loans:
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
740,405

 
$
14,694

 
$
7,992

 
$
—

 
$
763,091

Franchise
 
626,508

 
—

 
—

 
—

 
626,508

Commercial owner occupied
 
784,962

 
983

 
19,192

 
—

 
805,137

SBA
 
117,909

 
222

 
1,738

 
—

 
119,869

Agriculture
 
80,344

 
4,433

 
1,689

 
—

 
86,466

Real estate loans:
 
 
 
 
 
 
 
 
 
 
Commercial non-owner occupied
 
1,095,919

 
1,985

 
1,091

 
—

 
1,098,995

Multi-family
 
796,603

 
—

 
767

 
—

 
797,370

One-to-four family
 
276,511

 
578

 
844

 
—

 
277,933

Construction and land
 
324,773

 
299

 
6,981

 
—

 
332,053

Farmland
 
138,409

 
61

 
2,111

 
—

 
140,581

Other loans
 
5,949

 
—

 
279

 
—

 
6,228

Totals
 
$
4,988,292

 
$
23,255

 
$
42,684

 
$
—

 
$
5,054,231


 
 
Credit Risk Grades
 
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total Gross
Loans
December 31, 2016
 
(dollars in thousands)
Business loans:
 
 

 
 

 
 

 
 
 
 

Commercial and industrial
 
$
550,919

 
$
8,216

 
$
3,784

 
$
250

 
$
563,169

Franchise
 
459,421

 
—

 
—

 
—

 
459,421

Commercial owner occupied
 
450,416

 
281

 
4,221

 
—

 
454,918

SBA
 
96,190

 
53

 
462

 
—

 
96,705

Real estate loans:
 
 

 
 

 
 

 
 
 
 
Commercial non-owner occupied
 
585,093

 
810

 
1,072

 
—

 
586,975

Multi-family
 
681,942

 
6,610

 
2,403

 
—

 
690,955

One-to-four family
 
100,010

 
—

 
441

 
—

 
100,451

Construction and land
 
288,973

 
—

 
15

 
—

 
288,988

Other loans
 
3,719

 
—

 
393

 
—

 
4,112

Totals
 
$
3,216,683

 
$
15,970

 
$
12,791

 
$
250

 
$
3,245,694
Schedule of delinquencies in the Company's loan portfolio
The following tables set forth delinquencies in the Company’s loan portfolio at the dates indicated:
 
 
 
 
 
Days Past Due
 
 
 
Non-
 
 
Current
 
30-59
 
60-89
 
90+
 
Total
 
Accruing
September 30, 2017
 
(dollars in thousands)
Business loans:
 
 
 
 

 
 

 
 

 
 
 
 
Commercial and industrial
 
$
762,588

 
$
57

 
$
119

 
$
327

 
$
763,091

 
$
228

Franchise
 
626,508

 
—

 
—

 
—

 
626,508

 
—

Commercial owner occupied
 
804,094

 
—

 
—

 
1,043

 
805,137

 
83

SBA
 
118,711

 
15

 
994

 
149

 
119,869

 
90

  Agriculture
 
86,466

 
—

 
—

 
—

 
86,466

 
—

Real estate loans:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial non-owner occupied
 
1,098,995

 
—

 
—

 
—

 
1,098,995

 
—

Multi-family
 
797,370

 
—

 
—

 
—

 
797,370

 
—

One-to-four family
 
277,107

 
416

 
310

 
100

 
277,933

 
103

Construction
 
301,334

 
—

 
—

 
—

 
301,334

 
—

Farmland
 
140,581

 
—

 
—

 
—

 
140,581

 
—

Land
 
30,709

 
—

 
—

 
10

 
30,719

 
11

Other loans
 
6,160

 
68

 
—

 
—

 
6,228

 
—

Totals
 
$
5,050,623

 
$
556

 
$
1,423

 
$
1,629

 
$
5,054,231

 
$
515


 
 
 

 
Days Past Due
 
 

 
Non-
 
 
Current
 
30-59
 
60-89
 
90+
 
Total
 
Accruing
December 31, 2016
 
(dollars in thousands)
Business loans:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial and industrial
 
$
562,805

 
$
104

 
$
—

 
$
260

 
$
563,169

 
$
250

Franchise
 
459,421

 
—

 
—

 
—

 
459,421

 
—

Commercial owner occupied
 
454,918

 
—

 
—

 
—

 
454,918

 
436

SBA
 
96,389

 
—

 
—

 
316

 
96,705

 
316

Real estate loans:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial non-owner occupied
 
586,975

 
—

 
—

 
—

 
586,975

 
—

Multi-family
 
690,955

 
—

 
—

 
—

 
690,955

 
—

One-to-four family
 
100,314

 
18

 
71

 
48

 
100,451

 
124

Construction
 
269,159

 
—

 
—

 
—

 
269,159

 
—

Land
 
19,814

 
—

 
—

 
15

 
19,829

 
15

Other loans
 
4,112

 
—

 
—

 
—

 
4,112

 
—

Totals
 
$
3,244,862

 
$
122

 
$
71

 
$
639

 
$
3,245,694

 
$
1,141