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Allowance for Loan Losses
 3 Months Ended
Mar. 31, 2018
Loans and Leases Receivable Disclosure [Abstract]  
Impaired Loans and Allowance for Loan Losses
Note F — Allowance for Loan Losses
 
Activity in the allowance for loan losses for the three-month period ended March 31, 2018 and 2017 is summarized as follows:
 
 
 
March 31, 2018
 
 
 
 
 
 
Provision
 
 
 
 
 
 
 
TDR
 
 
 
 
 
 
Beginning
 
for Loan
 
Charge-
 
 
 
 
Allowance
 
Ending
 
 
 
Balance
 
Losses
 
Offs
 
Recoveries
 
Adjustments
 
Balance
 
 
 
(In thousands)
 
Construction &; land development
 
$
1,642
 
$
411
 
$
0
 
$
5
 
$
0
 
$
2,058
 
Commercial real estate
 
 
9,285
 
 
(575)
 
 
0
 
 
147
 
 
(15)
 
 
8,842
 
Residential real estate
 
 
7,131
 
 
788
 
 
0
 
 
200
 
 
(72)
 
 
8,047
 
Commercial and financial
 
 
7,297
 
 
270
 
 
(198)
 
 
24
 
 
0
 
 
7,393
 
Consumer
 
 
1,767
 
 
191
 
 
(307)
 
 
128
 
 
(1)
 
 
1,778
 
Totals
 
$
27,122
 
$
1,085
 
$
(505)
 
$
504
 
$
(88)
 
$
28,118
 
 
 
 
March 31, 2017
 
 
 
 
 
 
Provision
 
 
 
 
 
 
 
TDR
 
 
 
 
 
 
Beginning
 
for Loan
 
Charge-
 
 
 
 
Allowance
 
Ending
 
 
 
Balance
 
Losses
 
Offs
 
Recoveries
 
Adjustments
 
Balance
 
 
 
(In thousands)
 
Construction &; land development
 
$
1,219
 
$
66
 
$
0
 
$
69
 
$
(2)
 
$
1,352
 
Commercial real estate
 
 
9,273
 
 
495
 
 
0
 
 
107
 
 
(14)
 
 
9,861
 
Residential real estate
 
 
7,483
 
 
(393)
 
 
(122)
 
 
128
 
 
(32)
 
 
7,064
 
Commercial and financial
 
 
3,636
 
 
1,073
 
 
(121)
 
 
47
 
 
0
 
 
4,635
 
Consumer
 
 
1,789
 
 
63
 
 
(259)
 
 
58
 
 
(1)
 
 
1,650
 
Totals
 
$
23,400
 
$
1,304
 
$
(502)
 
$
409
 
$
(49)
 
$
24,562
 
 
The allowance for loan losses is composed of specific allowances for certain impaired loans and general allowances grouped into loan pools based on similar characteristics. The Company’s loan portfolio, excluding PCI loans, and related allowance at March 31, 2018 and December 31, 2017 is shown in the following tables:
 
 
March 31, 2018
 
 
 
Individually Evaluated for
 
Collectively Evaluated for
 
 
 
 
 
 
 
 
 
Impairment
 
Impairment
 
Total
 
 
 
Recorded
 
Associated
 
Recorded
 
Associated
 
Recorded
 
Associated
 
 
 
Investment
 
Allowance
 
Investment
 
Allowance
 
Investment
 
Allowance
 
 
 
(In thousands)
 
Construction &; land development
 
$
451
 
$
26
 
$
372,643
 
$
2,032
 
$
373,094
 
$
2,058
 
Commercial real estate
 
 
7,526
 
 
178
 
 
1,627,858
 
 
8,664
 
 
1,635,384
 
 
8,842
 
Residential real estate
 
 
21,900
 
 
1,094
 
 
1,041,383
 
 
6,953
 
 
1,063,283
 
 
8,047
 
Commercial and financial
 
 
2,363
 
 
1,406
 
 
613,520
 
 
5,987
 
 
615,883
 
 
7,393
 
Consumer
 
 
368
 
 
41
 
 
195,420
 
 
1,737
 
 
195,788
 
 
1,778
 
Totals
 
$
32,608
 
$
2,745
 
$
3,850,824
 
$
25,373
 
$
3,883,432
 
$
28,118
 
 
 
 
At December 31, 2017
 
 
 
Individually Evaluated for
 
Collectively Evaluated for
 
 
 
 
 
 
 
 
 
Impairment
 
Impairment
 
Total
 
 
 
Recorded
 
Associated
 
Recorded
 
Associated
 
Recorded
 
Associated
 
 
 
Investment
 
Allowance
 
Investment
 
Allowance
 
Investment
 
Allowance
 
 
 
(In thousands)
 
Construction &; land development
 
$
474
 
$
23
 
$
341,530
 
$
1,619
 
$
342,004
 
$
1,642
 
Commercial real estate
 
 
8,255
 
 
195
 
 
1,621,960
 
 
9,090
 
 
1,630,215
 
 
9,285
 
Residential real estate
 
 
18,720
 
 
1,091
 
 
1,014,465
 
 
6,040
 
 
1,033,185
 
 
7,131
 
Commercial and financial
 
 
2,455
 
 
1,050
 
 
602,666
 
 
6,247
 
 
605,121
 
 
7,297
 
Consumer
 
 
387
 
 
43
 
 
189,049
 
 
1,724
 
 
189,436
 
 
1,767
 
Totals
 
$
30,291
 
$
2,402
 
$
3,769,670
 
$
24,720
 
$
3,799,961
 
$
27,122
 
 
Loans collectively evaluated for impairment reported at March 31, 2018 included acquired loans that are not PCI loans. At March 31, 2018, the remaining fair value adjustments for loans acquired was approximately $17.4 million, or approximately 2.1% of the outstanding aggregate PUL balances. At December 31, 2017, the remaining fair value adjustments for loans acquired was approximately $19.4 million, or 2.2% of the outstanding aggregate PUL balances. These amounts represent the fair value discount of each PUL and are accreted into interest income over the remaining lives of the related loans on a level yield basis.
 
The table below summarizes PCI loans that were individually evaluated for impairment based on expected cash flows at March 31, 2018 and December 31, 2017:
 
 
 
March 31, 2018
 
December 31, 2017
 
 
 
PCI Loans Individually Evaluated for Impairment
 
 
 
Recorded
 
Associated
 
Recorded
 
Associated
 
(Dollars in thousands)
 
Investment
 
Allowance
 
Investment
 
Allowance
 
Construction &; land development
 
$
1,150
 
$
0
 
$
1,121
 
$
0
 
Commercial real estate
 
 
9,855
 
 
0
 
 
9,776
 
 
0
 
Residential real estate
 
 
1,869
 
 
0
 
 
5,626
 
 
0
 
Commercial and financial
 
 
819
 
 
0
 
 
894
 
 
0
 
Consumer
 
 
0
 
 
0
 
 
0
 
 
0
 
 
 
$
13,693
 
$
0
 
$
17,417
 
$
0