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Loans and Allowance for Loan Losses (FY) (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2018

Dec. 31, 2017

Schedule of Accounts, Notes, Loans and Financing Receivable

At June 30, 2018 and December 31, 2017, loans are summarized as follows (in thousands):



	June 30, 2018									December 31, 2017
	PCI Loans¹			All Other Loans			Total			PCI Loans¹			All Other Loans			Total
Commercial real estate	$	18,474		$	727,390		$	745,864		$	17,903		$	625,085		$	642,988
Consumer real estate	6,987			348,889			355,876			7,450			286,007			293,457
Construction and land development	5,690			173,741			179,431			5,120			130,289			135,409
Commercial and industrial	821			278,950			279,771			858			237,229			238,087
Consumer and other	686			13,807			14,493			1,463			11,854			13,317
Total loans	32,658			1,542,777			1,575,435			32,794			1,290,464			1,323,258
Less: Allowance for loan losses	(19		)	(7,055		)	(7,074		)	(16		)	(5,844		)	(5,860		)
Loans, net	$	32,639		$	1,535,722		$	1,568,361		$	32,778		$	1,284,620		$	1,317,398

¹ Purchased Credit Impaired loans (“PCI loans”) are loans with evidence of credit deterioration at purchase.

At December 31, 2017 and 2016, loans consisted of the following (in thousands):



	December 31, 2017									December 31, 2016
	PCI Loans			All Other Loans			Total			PCI Loans		All Other Loans			Total
Commercial real estate	$	17,903		$	625,085		$	642,988		$	14,943	$	400,265		$	415,208
Consumer real estate	7,450			286,007			293,457			9,004		178,798			187,802
Construction and land development	5,120			130,289			135,409			1,678		116,191			117,869
Commercial and industrial	858			237,229			238,087			1,568		83,454			85,022
Consumer and other	1,463			11,854			13,317			—		7,475			7,475
Total loans	32,794			1,290,464			1,323,258			27,193		786,183			813,376
Less: Allowance for loan losses	(16		)	(5,844		)	(5,860		)	—		(5,105		)	(5,105		)

Loans, net	$	32,778		$	1,284,620		$	1,317,398		$	27,193	$	781,078		$	808,271

Schedule of Allowance for Loan Losses for Impaired and Performing Loans Receivable

The following tables show the allowance for loan losses allocation by loan classification for impaired, PCI, and performing loans as of June 30, 2018 and December 31, 2017 (in thousands):



	June 30, 2018
	Commercial Real Estate		Consumer Real Estate		Construction and Land Development		Commercial and Industrial		Consumer and Other		Total
Performing loans	$	3,116	$	1,491	$	744	$	1,145	$	224	$	6,720
PCI loans	19		—		—		—		—		19
Impaired loans	—		37		—		222		76		335
Total	$	3,135	$	1,528	$	744	$	1,367	$	300	$	7,074



	December 31, 2017
	Commercial Real Estate		Consumer Real Estate		Construction and Land Development		Commercial and Industrial		Consumer and Other		Total
Performing loans	$	2,444	$	1,340	$	521	$	890	$	204	$	5,399
PCI loans	16		—		—		—		—		16
Impaired loans	5		256		—		172		12		445
Total	$	2,465	$	1,596	$	521	$	1,062	$	216	$	5,860

The following tables show the allowance for loan losses allocation by loan classification for impaired and performing loans as of December 31, 2017 and 2016 (amounts in thousands):



December 31, 2017
					Construction		Commercial		Consumer
	Commercial		Consumer		and Land		and		and
	Real Estate		Real Estate		Development		Industrial		Other		Total
Performing loans	$	2,444	$	1,340	$	521	$	890	$	204	$	5,399
PCI loans	16		—		—		—		—		16
Impaired loans	5		256		—		172		12		445
Total	$	2,465	$	1,596	$	521	$	1,062	$	216	$	5,860



December 31, 2016
					Construction		Commercial		Consumer
	Commercial		Consumer		and Land		and		and
	Real Estate		Real Estate		Development		Industrial		Other		Total
Performing loans	$	2,369	$	1,382	$	717	$	516	$	117	$	5,101
PCI Loans	—		—		—		—		—		—
Impaired loans	—		—		—		4		—		4
Total	$	2,369	$	1,382	$	717	$	520	$	117	$	5,105

Schedule of Financing Receivable Allowance For Credit Losses

The following tables detail the changes in the allowance for loan losses for the six month period ending June 30, 2018 and year ending December 31, 2017, by loan classification (in thousands):



	June 30, 2018
	Commercial Real Estate			Consumer Real Estate			Construction and Land Development		Commercial and Industrial			Consumer and Other			Total
Beginning balance	$	2,465		$	1,596		$	521	$	1,062		$	216		$	5,860
Loans charged off	(38		)	(25		)	—		(78		)	(101		)	(242		)
Recoveries of loans charged off	—			50			5		56			40			151
Provision (reallocation) charged to expense	708			(93		)	218		327			145			1,305
Ending balance	$	3,135		$	1,528		$	744	$	1,367		$	300		$	7,074



	December 31, 2017
	Commercial Real Estate		Consumer Real Estate			Construction and Land Development			Commercial and Industrial			Consumer and Other			Total
Beginning balance	$	2,369	$	1,382		$	717		$	520		$	117		$	5,105
Loans charged off	—		(111		)	—			(24		)	(141		)	(276		)
Recoveries of charge-offs	8		99			13			67			61			248
Provision (reallocation) charged to expense	88		226			(209		)	499			179			783
Ending balance	$	2,465	$	1,596		$	521		$	1,062		$	216		$	5,860

The following tables detail the changes in the allowance for loan losses for the year ending December 31, 2017 and December 31, 2016, by loan classification (amounts in thousands):



December 31, 2017
	Commercial Real Estate		Consumer Real Estate			Construction and Land Development			Commercial and Industrial			Consumer and Other			Total
Beginning balance	$	2,369	$	1,382		$	717		$	520		$	117		$	5,105
Loans charged off	—		(111		)	—			(24		)	(141		)	(276		)
Recoveries of loans charged off	8		99			13			67			61			248
Provision (reallocation) charged to operating expense	88		226			(209		)	499			179			783
Ending balance	$	2,465	$	1,596		$	521		$	1,062		$	216		$	5,860



December 31, 2016
	Commercial Real Estate		Consumer Real Estate			Construction and Land Development			Commercial and Industrial			Consumer and Other			Total
Beginning balance	$	1,906	$	1,015		$	627		$	777		$	29		$	4,354
Loans charged off	—		(102		)	(14		)	(35		)	(155		)	(306		)
Recoveries of loans charged off	45		76			22			58			68			269
Provision (reallocation) charged to operating expense	418		393			82			(280		)	175			788
Ending balance	$	2,369	$	1,382		$	717		$	520		$	117		$	5,105

Financing Receivable Credit Quality Indicators

The following tables outline the amount of each loan classification and the amount categorized into each risk rating as of June 30, 2018 and December 31, 2017 (in thousands):



	June 30, 2018
Non PCI Loans	Commercial Real Estate		Consumer Real Estate		Construction and Land Development		Commercial and Industrial		Consumer and Other		Total
Pass	$	724,763	$	343,407	$	172,972	$	277,384	$	13,184	$	1,531,710
Watch	1,604		3,168		62		1,035		123		5,992
Special mention	—		949		160		35		363		1,507
Substandard	1,023		1,365		547		483		111		3,529
Doubtful	—		—		—		13		26		39
Total	$	727,390	$	348,889	$	173,741	$	278,950	$	13,807	$	1,542,777



PCI Loans
Pass	$	14,494	$	4,558	$	3,973	$	210	$	565	$	23,800
Watch	1,513		898		653		2		18		3,084
Special mention	1,393		575		716		153		17		2,854
Substandard	1,074		956		348		456		86		2,920
Doubtful	—		—		—		—		—		—
Total	$	18,474	$	6,987	$	5,690	$	821	$	686	$	32,658
Total loans	$	745,864	$	355,876	$	179,431	$	279,771	$	14,493	$	1,575,435



	December 31, 2017
Non PCI Loans	Commercial Real Estate		Consumer Real Estate		Construction and Land Development		Commercial and Industrial		Consumer and Other		Total
Pass	$	616,028	$	279,464	$	129,359	$	233,942	$	11,624	$	1,270,417
Watch	7,673		2,543		383		3,007		62		13,668
Special mention	1,006		2,627		—		64		155		3,852
Substandard	378		1,159		547		157		—		2,241
Doubtful	—		214		—		59		13		286
Total	$	625,085	$	286,007	$	130,289	$	237,229	$	11,854	$	1,290,464



PCI Loans
Pass	$	14,386	$	4,151	$	4,134	$	68	$	819	$	23,558
Watch	261		1,345		649		120		262		2,637
Special mention	—		456		—		58		24		538
Substandard	3,084		1,192		337		588		107		5,308
Doubtful	172		306		—		24		251		753
Total	$	17,903	$	7,450	$	5,120	$	858	$	1,463	$	32,794
Total loans	$	642,988	$	293,457	$	135,409	$	238,087	$	13,317	$	1,323,258

The following tables outline the amount of each loan classification and the amount categorized into each risk rating as of December 31, 2017 and 2016 (amounts in thousands):

Non PCI Loans



	December 31, 2017
	Commercial Real Estate		Consumer Real Estate		Construction and Land Development		Commercial and Industrial		Consumer and Other		Total
Pass	$	616,028	$	279,464	$	129,359	$	233,942	$	11,624	$	1,270,417
Watch	7,673		2,543		383		3,007		62		13,668
Special mention	1,006		2,627		—		64		155		3,852
Substandard	378		1,159		547		157		—		2,241
Doubtful	—		214		—		59		13		286
Total	$	625,085	$	286,007	$	130,289	$	237,229	$	11,854	$	1,290,464

PCI Loans



	December 31, 2017
	Commercial Real Estate		Consumer Real Estate		Construction and Land Development		Commercial and Industrial		Consumer and Other		Total
Pass	$	14,386	$	4,151	$	4,134	$	68	$	819	$	23,558
Watch	261		1,345		649		120		262		2,637
Special mention	—		456		—		58		24		538
Substandard	3,084		1,192		337		588		107		5,308
Doubtful	172		306		—		24		251		753
Total	$	17,903	$	7,450	$	5,120	$	858	$	1,463	$	32,794
Total loans	$	642,988	$	293,457	$	135,409	$	238,087	$	13,317	$	1,323,258

Non PCI Loans



	December 31, 2016
	Commercial Real Estate		Consumer Real Estate		Construction and Land Development		Commercial and Industrial		Consumer and Other		Total
Pass	$	399,505	$	177,466	$	115,237	$	82,992	$	7,238	$	782,438
Watch	640		550		89		252		—		1,531
Special mention	—		104		—		—		237		341
Substandard	120		678		865		210		—		1,873
Doubtful	—		—		—		—		—		—
Total	$	400,265	$	178,798	$	116,191	$	83,454	$	7,475	$	786,183

PCI Loans



	December 31, 2016
	Commercial Real Estate		Consumer Real Estate		Construction and Land Development		Commercial and Industrial		Consumer and Other		Total
Pass	$	11,836	$	6,811	$	1,019	$	1,507	$	—	$	21,173
Watch	1,045		1,577		645		22		—		3,289
Special mention	—		—		—		12		—		12
Substandard	2,062		616		14		—		—		2,692
Doubtful	—		—		—		27		—		27
Total	$	14,943	$	9,004	$	1,678	$	1,568	$	—	$	27,193
Total loans	$	415,208	$	187,802	$	117,869	$	85,022	$	7,475	$	813,376

Past Due Financing Receivables

The following tables present the aging of the recorded investment in loans as of June 30, 2018 and December 31, 2017 (in thousands):



	June 30, 2018
	30-89 Days Past Due and Accruing		Past Due 90 Days or More and Accruing		Nonaccrual		Total Past Due and NonAccrual		PCI Loans		Current Loans		Total Loans
Commercial real estate	$	2,628	$	82	$	6	$	2,716	$	18,474	$	724,674	$	745,864
Consumer real estate	701		76		463		1,240		6,987		347,649		355,876
Construction and land development	403		338		547		1,288		5,690		172,453		179,431
Commercial and industrial	647		113		430		1,190		821		277,760		279,771
Consumer and other	189		58		92		339		686		13,468		14,493
Total	$	4,568	$	667	$	1,538	$	6,773	$	32,658	$	1,536,004	$	1,575,435



	December 31, 2017
	30-89 Days Past Due and Accruing		Past Due 90 Days or More and Accruing		Nonaccrual		Total Past Due and NonAccrual		PCI Loans		Current Loans		Total Loans
Commercial real estate	$	517	$	728	$	128	$	1,373	$	17,903	$	623,712	$	642,988
Consumer real estate	963		33		991		1,987		7,450		284,020		293,457
Construction and land development	65		326		547		938		5,120		129,351		135,409
Commercial and industrial	286		131		85		502		858		236,727		238,087
Consumer and other	165		291		13		469		1,463		11,385		13,317
Total	$	1,996	$	1,509	$	1,764	$	5,269	$	32,794	$	1,285,195	$	1,323,258

The following tables present the aging of the recorded investment in loans and leases as of December 31, 2017 and 2016 (amounts in thousands):



	December 31, 2017
	30-89 Days Past Due and Accruing		Past Due 90 Days or More and Accruing		Nonaccrual		Total Past Due		PCI Loans		Current Loans		Total Loans
Commercial real estate	$	517	$	728	$	128	$	1,373	$	17,903	$	623,712	$	642,988
Consumer real estate	963		33		991		1,987		7,450		284,020		293,457
Construction and land development	65		326		547		938		5,120		129,351		135,409
Commercial and industrial	286		131		85		502		858		236,727		238,087
Consumer and other	165		291		13		469		1,463		11,385		13,317
Total	$	1,996	$	1,509	$	1,764	$	5,269	$	32,794	$	1,285,195	$	1,323,258



	December 31, 2016
	30-89 Days Past Due and Accruing		Past Due 90 Days or More and Accruing		Nonaccrual		Total Past Due		PCI Loans		Current Loans		Total Loans
Commercial real estate	$	395	$	—	$	—	$	395	$	14,943	$	399,870	$	415,208
Consumer real estate	695		699		386		1,780		9,004		177,018		187,802
Construction and land development	690		—		865		1,555		1,678		114,636		117,869
Commercial and industrial	257		—		164		421		1,568		83,033		85,022
Consumer and other	17		—		—		17		—		7,458		7,475
Total	$	2,054	$	699	$	1,415	$	4,168	$	27,193	$	782,015	$	813,376

Impaired Financing Receivables

The following is an analysis of the impaired loan portfolio, excluding PCI loans, detailing the related allowance recorded as of June 30, 2018 and December 31, 2017 (in thousands):



							For the six months ended
	At June 30, 2018						June 30, 2018
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
Impaired loans without a valuation allowance:
Commercial real estate	$	1,034	$	1,043	$	—	$	670	$	15
Consumer real estate	793		823		—		699		12
Construction and land development	547		547		—		547		—
Commercial and industrial	81		83		—		58		3
Consumer and other	16		16		—		5		—
	2,471		2,512		—		1,979		30
Impaired loans with a valuation allowance:
Commercial real estate	—		—		—		8		—
Consumer real estate	203		216		37		642		11
Construction and land development	—		—		—		—		—
Commercial and industrial	438		440		222		257		5
Consumer and other	93		95		76		72		2
	734		751		335		979		18
PCI loans:
Commercial real estate	27		127		19		5		3
Total impaired loans	$	3,232	$	3,390	$	354	$	2,963	$	51



							For the year ended
	At December 31, 2017						December 31, 2017
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
Impaired loans without a valuation allowance:
Commercial real estate	$	424	$	454	$	—	$	204	$	44
Consumer real estate	415		420		—		401		16
Construction and land development	547		547		—		628		—
Commercial and industrial	41		41		—		44		3
Consumer and other	—		—		—		—		—
	1,427		1,462		—		1,277		63
Impaired loans with a valuation allowance:
Commercial real estate	23		23		5		5		1
Consumer real estate	1,007		1,033		256		601		38
Construction and land development	—		—		—		—		—
Commercial and industrial	172		172		172		117		10
Consumer and other	12		13		12		2		1
	1,214		1,241		445		725		50
PCI loans:
Commercial real estate	16		123		16		3		16
Total impaired loans	$	2,657	$	2,826	$	461	$	2,005	$	129

The following is an analysis of the impaired loan portfolio detailing the related allowance recorded as of and for the years ended December 31, 2017 and 2016 (amounts in thousands):



							For the year ended
	At December 31, 2017						December 31, 2017
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
Impaired loans without a valuation allowance:
Non PCI Loans:
Commercial real estate	$	424	$	454	$	—	$	204	$	44
Consumer real estate	415		420		—		401		16
Construction and land development	547		547		—		628		—
Commercial and industrial	41		41		—		44		3
Consumer and other	—		—		—		—		—
	1,427		1,462		—		1,277		63

PCI loans: None in 2017

Impaired loans with a valuation allowance:
Non PCI Loans:
Commercial real estate	23		23		5		5		1
Consumer real estate	1,007		1,033		256		601		38
Construction and land development	—		—		—		—		—
Commercial and industrial	172		172		172		117		10
Consumer and other	12		13		12		2		1
	1,214		1,241		445		725		50
PCI loans:
Commercial real estate	16		123		16		3		16

Total impaired loans	$	2,657	$	2,826	$	461	$	2,005	$	129



							For the year ended
	At December 31, 2016						December 31, 2016
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
Impaired loans without a valuation allowance:
Non PCI Loans:
Commercial real estate	$	119	$	119	$	—	$	1,311	$	73
Consumer real estate	821		849		—		2,334		100
Construction and land development	865		865		—		967		3
Commercial and industrial	46		46		—		47		4
Consumer and other	—		—		—		—		—
	1,851		1,879		—		4,659		180

PCI loans: None in 2016

Impaired loans with a valuation allowance:
Non PCI Loans:
Commercial real estate	—		—		—		—		—
Consumer real estate	—		—		—		—		—
Construction and land development	—		—		—		—		—
Commercial and industrial	164		243		4		306		70
Consumer and other	—		—		—		—		—
	164		243		4		306		70
PCI loans: None in 2016
Total impaired loans	$	2,015	$	2,122	$	4	$	4,965	$	250

Troubled Debt Restructurings on Financing Receivables

The following table presents a summary of loans that were modified as troubled debt restructurings during the year ended December 31, 2016 (amounts in thousands):



December 31, 2016	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Construction and land development	1	$	278	$	278
Commercial and industrial	1	164		164

Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period, Carrying Amount of Loans

The Company has acquired loans which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans as of is as follows (in thousands):



	June 30, 2018			December 31, 2017
Commercial real estate	$	25,700		$	23,366
Consumer real estate	9,620			10,764
Construction and land development	6,793			6,285
Commercial and industrial	2,973			1,452
Consumer and other	1,014			1,710
Total loans	46,100			43,577
Less remaining purchase discount	(13,442		)	(10,783		)
Total loans, net of purchase discount	32,658			32,794
Less: Allowance for loan losses	(19		)	(16		)
Carrying amount, net of allowance	$	32,639		$	32,778



	2017			2016
Commercial real estate	$	23,366		$	18,473
Consumer real estate	10,764			12,111
Construction and land development	6,285			2,553
Commercial and industrial	1,452			2,482
Consumer and other	1,710			—
Total loans	$	43,577		$	35,619
Less remaining purchase discount	(10,783		)	(8,426		)
Total, gross	32,794			27,193
Less: Allowance for loan losses	(16		)	—
Carrying amount, net of allowance	$	32,778		$	27,193

Schedule of Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement

Activity related to the accretable yield on loans acquired with deteriorated credit quality is as follows for the three and six months period ended June 30, 2018 and 2017 (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Accretable yield, beginning of period	$	7,780		$	8,482		$	9,287		$	8,950
Additions	1,292			—			1,292			—
Accretion income	(1,928		)	(973		)	(3,029		)	(1,670		)
Reclassification to accretable	120			366			382			610
Other changes, net	(58		)	600			(726		)	585
Accretable yield	$	7,206		$	8,475		$	7,206		$	8,475

The following is a summary of the accretable discount on acquired loans for the years ended December 31, 2017 and 2016 (in thousands):



	2017			2016
Accretable yield, beginning of period	$	8,950		$	10,217
Additions	2,581			—
Accretion income	(4,217		)	(2,588		)
Reclassification from nonaccretable	926			1,585
Other changes, net	1,047			(264		)
Accretable yield, end of period	$	9,287		$	8,950

Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period

Purchased credit impaired loans acquired from Capstone during the year ended December 31, 2017 for which it was probable at acquisition that all contractually required payments would not be collected are as follows (in thousands):



	2017
Contractual principal and interest at acquisition	$	25,288
Nonaccretable difference	5,725
Expected cash flows at acquisition	19,563
Accretable yield	2,581
Basis in PCI loans at acquisition-estimated fair value	$	16,982

Schedule of Loan to Directors, Officers and Affiliated Parties

A summary of activity in loans to related parties is as follows (in thousands):



	2017			2016
Balance, beginning of year	$	12,999		$	10,851
Disbursements	14,533			855
Removal of credit lines	—			(1,153		)
Changes in ownership	—			4,830
Repayments	(9,202		)	(2,384		)
Balance, end of year	$	18,330		$	12,999