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Loans Held for Investment (Tables)
 3 Months Ended
Mar. 31, 2018
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:
 
March 31, 2018
 
December 31, 2017
 
(dollars in thousands)
Business loans
 
 
 
Commercial and industrial
$
1,062,385

 
$
1,086,659

Franchise
692,846

 
660,414

Commercial owner occupied (1)
1,268,869

 
1,289,213

SBA
182,626

 
185,514

Agribusiness
149,256

 
116,066

    Total business loans
3,355,982

 
3,337,866

Real estate loans
 

 
 
Commercial non-owner occupied
1,227,693

 
1,243,115

Multi-family
817,963

 
794,384

One-to-four family (2)
266,324

 
270,894

Construction
319,610

 
282,811

Farmland
136,522

 
145,393

Land
34,452

 
31,233

    Total real estate loans
2,802,564

 
2,767,830

Consumer loans
 
 
 
Consumer loans
86,206

 
92,931

Gross loans held for investment (3)
6,244,752

 
6,198,627

Deferred loan origination costs/(fees) and premiums/(discounts), net
(2,911
)
 
(2,159
)
Loans held for investment
6,241,841

 
6,196,468

Allowance for loan losses
(30,502
)
 
(28,936
)
Loans held for investment, net
$
6,211,339

 
$
6,167,532

 
 
 
 
Loans held for sale, at lower of cost or fair value
$
29,034

 
$
23,426

______________________________
(1) Secured by real estate.
(2) Includes second trust deeds.
(3) Total gross loans held for investment for March 31, 2018 and December 31, 2017 are net of the unaccreted fair value net purchase discounts of $24.5 million and $29.1 million, respectively.
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
March 31, 2018
 
(dollars in thousands)
Business loans
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
1,041,457

 
$
8,172

 
$
12,756

 
$
—

 
$
1,062,385

Franchise
 
692,846

 
—

 
—

 
—

 
692,846

Commercial owner occupied
 
1,262,138

 
4,170

 
18,220

 
—

 
1,284,528

SBA
 
193,527

 
890

 
1,573

 
—

 
195,990

Agribusiness
 
136,139

 
—

 
13,117

 
—

 
149,256

Real estate loans
 
 
 
 
 
 
 
 
 
 
Commercial non-owner occupied
 
1,226,642

 
—

 
1,051

 
—

 
1,227,693

Multi-family
 
816,506

 
—

 
1,457

 
—

 
817,963

One-to-four family
 
264,574

 
145

 
1,605

 
—

 
266,324

Construction
 
318,923

 
687

 
—

 
—

 
319,610

Farmland
 
135,413

 
—

 
1,109

 
—

 
136,522

Land
 
34,221

 
—

 
231

 
—

 
34,452

Consumer loans
 
 
 
 
 
 
 
 
 
 
Consumer loans
 
86,071

 
—

 
135

 
—

 
86,206

Totals
 
$
6,208,457

 
$
14,064

 
$
51,254

 
$
—

 
$
6,273,775


 
 
Credit Risk Grades
 
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total Gross
Loans
December 31, 2017
 
(dollars in thousands)
Business loans
 
 

 
 

 
 

 
 
 
 

Commercial and industrial
 
$
1,063,452

 
$
8,163

 
$
15,044

 
$
—

 
$
1,086,659

Franchise
 
660,414

 
—

 
—

 
—

 
660,414

Commercial owner occupied
 
1,273,381

 
654

 
21,180

 
—

 
1,295,215

SBA
 
199,468

 
1

 
3,469

 
—

 
202,938

Agribusiness
 
108,143

 
4,079

 
3,844

 
—

 
116,066

Real estate loans
 
 

 
 

 
 

 
 
 
 
Commercial non-owner occupied
 
1,242,045

 
—

 
1,070

 
—

 
1,243,115

Multi-family
 
794,156

 
—

 
228

 
—

 
794,384

One-to-four family
 
268,776

 
154

 
1,964

 
—

 
270,894

Construction
 
282,294

 
517

 
—

 
—

 
282,811

Farmland
 
144,234

 
44

 
1,115

 
—

 
145,393

Land
 
30,979

 
—

 
254

 
—

 
31,233

Consumer loans
 
 
 
 
 
 
 
 
 
 
Consumer loans
 
92,794

 
—

 
137

 
—

 
92,931

Totals
 
$
6,160,136

 
$
13,612

 
$
48,305

 
$
—

 
$
6,222,053
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
 
 
 
 
 
 
Current
 
30-59
 
60-89
 
90+
 
Total Gross Loans
 
Non-accruing
March 31, 2018
 
(dollars in thousands)
Business loans
 
 
 
 

 
 

 
 

 
 
 
 
Commercial and industrial
 
$
1,056,886

 
$
5,241

 
$
93

 
$
165

 
$
1,062,385

 
$
1,067

Franchise
 
692,846

 
—

 
—

 
—

 
692,846

 
—

Commercial owner occupied
 
1,280,900

 
153

 
—

 
3,475

 
1,284,528

 
3,475

SBA
 
194,064

 
785

 
991

 
150

 
195,990

 
1,218

  Agribusiness
 
149,256

 
—

 
—

 
—

 
149,256

 
—

Real estate loans
 
 

 
 

 
 

 
 

 
 

 
 

Commercial non-owner occupied
 
1,227,693

 
—

 
—

 
—

 
1,227,693

 
—

Multi-family
 
816,732

 
—

 
—

 
1,231

 
817,963

 
1,231

One-to-four family
 
265,943

 
345

 
—

 
36

 
266,324

 
1,134

Construction
 
319,610

 
—

 
—

 
—

 
319,610

 
—

Farmland
 
136,522

 
—

 
—

 
—

 
136,522

 
—

Land
 
34,363

 
81

 
—

 
8

 
34,452

 
8

Consumer loans
 
 
 
 
 
 
 
 
 
 
 
 
Consumer loans
 
86,206

 
—

 
—

 
—

 
86,206

 
16

Totals
 
$
6,261,021

 
$
6,605

 
$
1,084

 
$
5,065

 
$
6,273,775

 
$
8,149


 
 
 

 
Days Past Due
 
 

 
 
 
 
Current
 
30-59
 
60-89
 
90+
 
Total Gross Loans
 
Non-accruing
December 31, 2017
 
(dollars in thousands)
Business loans
 
 

 
 

 
 

 
 

 
 

 
 

Commercial and industrial
 
$
1,085,770

 
$
84

 
$
570

 
$
235

 
$
1,086,659

 
$
1,160

Franchise
 
660,414

 
—

 
—

 
—

 
660,414

 
—

Commercial owner occupied
 
1,291,255

 
3,474

 
486

 
—

 
1,295,215

 
97

SBA
 
200,821

 
177

 
—

 
1,940

 
202,938

 
1,201

Agribusiness
 
116,066

 
—

 
—

 
—

 
116,066

 
—

Real estate loans
 
 

 
 

 
 

 
 

 
 

 
 

Commercial non-owner occupied
 
1,243,115

 
—

 
—

 
—

 
1,243,115

 
—

Multi-family
 
792,603

 
1,781

 
—

 
—

 
794,384

 
—

One-to-four family
 
269,725

 
354

 
—

 
815

 
270,894

 
817

Construction
 
282,811

 
—

 
—

 
—

 
282,811

 
—

Farmland
 
145,393

 
—

 
—

 
—

 
145,393

 
—

Land
 
31,141

 
83

 
—

 
9

 
31,233

 
9

Consumer loans
 
 
 
 
 
 
 
 
 
 
 
 
Consumer loans
 
92,880

 
11

 
—

 
40

 
92,931

 
—

Totals
 
$
6,211,994

 
$
5,964

 
$
1,056

 
$
3,039

 
$
6,222,053

 
$
3,284
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
 
 
Unpaid Principal Balance
 
Recorded Investment
 
With Specific Allowance
 
Without Specific Allowance
 
Specific Allowance for Impaired Loans
 
 
(dollars in thousands)
March 31, 2018
 
 
 
 
 
 
 
 
 
 
Business loans
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
1,520

 
$
1,067

 
$
—

 
$
1,067

 
$
—

Commercial owner occupied
 
3,598

 
3,475

 
—

 
3,475

 
—

SBA
 
4,575

 
1,218

 
—

 
1,218

 
—

Real estate loans
 
 
 
 
 
 
 
 
 
 
Commercial non-owner occupied
 
—

 
—

 
—

 
—

 
—

Multi-family
 
1,231

 
1,231

 
—

 
1,231

 
—

One-to-four family
 
1,178

 
1,134

 
—

 
1,134

 
—

Land
 
35

 
8

 
—

 
8

 
—

Consumer loans
 
 
 
 
 
 
 
 
 
 
Consumer loans
 
17

 
16

 
—

 
16

 
—

Totals
 
$
12,154

 
$
8,149

 
$
—

 
$
8,149

 
$
—

  

 
 
Impaired Loans
 
 
Unpaid Principal Balance
 
Recorded Investment
 
With Specific Allowance
 
Without Specific Allowance
 
Specific Allowance for Impaired Loans
 
 
(dollars in thousands)
December 31, 2017
 
 

 
 

 
 

 
 

 
 

Business loans
 
 

 
 

 
 

 
 

 
 

Commercial and industrial
 
$
1,585

 
$
1,160

 
$
—

 
$
1,160

 
$
—

Commercial owner occupied
 
98

 
97

 
97

 
—

 
55

SBA
 
4,329

 
1,201

 
—

 
1,201

 
—

Real estate loans
 
 

 
 

 
 

 
 

 
 

One-to-four family
 
849

 
817

 
—

 
817

 
—

Land
 
35

 
9

 
—

 
9

 
—

Totals
 
$
6,896

 
$
3,284

 
$
97

 
$
3,187

 
$
55

  

 
 
Impaired Loans
 
 
Three Months Ended
 
 
March 31, 2018
 
December 31, 2017
 
March 31, 2017
 
 
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
 
$
1,181

 
$
—

 
$
1,112

 
$
—

 
$
200

 
$
5

Commercial owner occupied
 
3,475

 
—

 
125

 
—

 
192

 
3

SBA
 
1,241

 
—

 
1,123

 
—

 
307

 
5

Real estate loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
821

 
—

 
 
 
 
 
 
 
 
One-to-four family
 
1,024

 
—

 
341

 
—

 
116

 
3

Construction
 
—

 
—

 
4,069

 
—

 
—

 
—

Land
 
8

 
—

 
9

 
—

 
14

 
1

Consumer loans
 
 
 
 
 
 
 
 
 
 
 
 
Consumer loans
 
$
94

 
$
—

 
—

 
—

 
—

 
—

Totals
 
$
7,844

 
$
—

 
$
6,779

 
$
—

 
$
829

 
$
17

 
 
 
 
 
 
 
 
 
 
 
 
 
(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:
 
 
March 31, 2018
 
December 31, 2017
 
(dollars in thousands)
Nonaccruing loans
$
8,149

 
$
3,284

Accruing loans
—

 
—

Total impaired loans
$
8,149

 
$
3,284
Summary of Company's investment in purchased credit impaired loans
The Company has purchased loans, 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 carrying amount of those loans is as follows:
 
March 31, 2018
 
December 31, 2017
 
(dollars in thousands)
Business loans
 
 
 
Commercial and industrial
$
3,134

 
$
3,310

Commercial owner occupied
1,016

 
1,262

SBA
69

 
1,802

Real estate loans
 

 
 

Commercial non-owner occupied
1,122

 
1,650

One-to-four family
—

 
255

   Construction/Land
768

 
600

   Consumer loans
10

 
10

Total purchase credit impaired
$
6,119

 
$
8,889
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 March 31, 2018, December 31, 2017 and March 31, 2017.
 
 
Three Months Ended
 
 
March 31, 2018
 
December 31, 2017
 
March 31, 2017
 
 
(dollars in thousands)
Balance at the beginning of period
 
$
3,019

 
$
3,148

 
$
3,747

Additions
 
—

 
1,066

 
—

Accretion
 
(236
)
 
(308
)
 
(629
)
Payoffs
 
(1,850
)
 
(2,164
)
 
—

Reclassification from (to) nonaccretable difference
 
776

 
1,277

 
483

Balance at the end of period
 
$
1,709

 
$
3,019

 
$
3,601