Loans and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2016

Loans Receivable, Net [Abstract]

Schedule of Aging Analysis of Accruing and Nonaccruing Loans

The following table presents an aging analysis of accruing and nonaccruing loans as of March 31, 2016:

(dollars in thousands)	Accruing
	30-59 days past due		60-89 days past due		More than 90 days past due		Nonaccrual		Total past due and nonaccrual		Current and accruing		Total Loans
PC and Originated Loans
Commercial and agricultural	$	58	$	—	$	—	$	810	$	868	$	149,401	$	150,269
Real estate - construction	48		—		—		84		132		95,596		95,728
Real estate - mortgage:
1-4 family residential	2,152		91		—		9,434		11,677		626,673		638,350
Commercial	29		—		—		7,509		7,538		432,113		439,651
Consumer	842		320		—		580		1,742		114,039		115,781
Total	3,129		411		—		18,417		21,957		1,417,822		1,439,779
PI loans
Commercial and agricultural	47		—		1,637		—		1,684		3,067		4,751
Real estate - construction	—		—		1,345		—		1,345		5,929		7,274
Real estate - mortgage:
1-4 family residential	774		171		1,018		—		1,963		11,457		13,420
Commercial	86		263		9,165		—		9,514		48,807		58,321
Consumer	—		2		5		—		7		854		861
Total	907		436		13,170		—		14,513		70,114		84,627
Total Loans	$	4,036	$	847	$	13,170	$	18,417	$	36,470	$	1,487,936	$	1,524,406

The following table presents an aging analysis of accruing and nonaccruing loans as of December 31, 2015:

(dollars in thousands)	Accruing
	30-59 days past due		60-89 days past due		More than 90 days past due		Nonaccrual		Total past due and nonaccrual		Current and accruing		Total Loans
PC and Originated Loans
Commercial and agricultural	$	—	$	1	$	—	$	1,053	$	1,054	$	146,257	$	147,311
Real estate - construction	761		140		—		110		1,011		98,247		99,258
Real estate - mortgage:
1-4 family residential	2,710		574		817		9,106		13,207		660,430		673,637
Commercial	661		34		—		7,209		7,904		421,220		429,124
Consumer	1,227		250		1		538		2,016		104,885		106,901
Total	5,359		999		818		18,016		25,192		1,431,039		1,456,231
PI loans
Commercial and agricultural	102		—		1,618		—		1,720		3,275		4,995
Real estate - construction	—		—		1,455		—		1,455		6,289		7,744
Real estate - mortgage:
1-4 family residential	602		15		1,127		—		1,744		12,173		13,917
Commercial	517		123		8,819		—		9,459		50,530		59,989
Consumer	8		—		6		—		14		905		919
Total	1,229		138		13,025		—		14,392		73,172		87,564
Total Loans	$	6,588	$	1,137	$	13,843	$	18,016	$	39,584	$	1,504,211	$	1,543,795

Schedule of Loans Held for Investment

The following table presents loans held for investment balances by risk grade as of March 31, 2016:

(dollars in thousands)	Pass		Special Mention		Substandard		Doubtful
	(Ratings 1-5)		(Rating 6)		(Rating 7)		(Rating 8)		Total
Commercial and agricultural	$	151,873	$	570	$	2,577	$	—	$	155,020
Real estate - construction	96,350		2,639		4,013		—		103,002
Real estate - mortgage:
1-4 family residential	633,530		2,900		15,340		—		651,770
Commercial	461,100		10,889		25,983		—		497,972
Consumer	115,635		5		568		434		116,642
Total	$	1,458,488	$	17,003	$	48,481	$	434	$	1,524,406

The following table presents loans held for investment balances by risk grade as of December 31, 2015:

(dollars in thousands)	Pass		Special Mention		Substandard		Doubtful
	(Ratings 1-5)		(Rating 6)		(Rating 7)		(Rating 8)		Total
Commercial and agricultural	$	148,844	$	672	$	2,790	$	—	$	152,306
Real estate - construction	100,252		2,122		4,628		—		107,002
Real estate - mortgage:
1-4 family residential	669,695		3,508		14,351		—		687,554
Commercial	450,587		12,765		25,761		—		489,113
Consumer	107,008		4		553		255		107,820
Total	$	1,476,386	$	19,071	$	48,083	$	255	$	1,543,795

Schedule of Impaired Loans Receivables

The following table summarizes information relative to impaired loans for the dates indicated:

	March 31, 2016				December 31, 2015
(dollars in thousands)	Recorded Investment		Associated Reserves		Recorded Investment		Associated Reserves
Impaired loans, not individually reviewed for impairment	$	5,009	$	—	$	4,903	$	—
Impaired loans, individually reviewed, with no impairment	20,548		—		22,411		—
Impaired loans, individually reviewed, with impairment	4,525		384		3,817		399
Total impaired loans, excluding purchased impaired *	$	30,082	384		$	31,131	399
Purchased impaired loans with subsequent deterioration	$	81,519	2,754		$	84,329	2,754
Purchased impaired loans with no subsequent deterioration	3,108		—		3,235		—
Total Reserves			$	3,138			$	3,153
Average impaired loans calculated using a simple average	30,607				35,290

* Included at March 31, 2016 and December 31, 2015 were $11.7 million and $13.1 million, respectively, in restructured and performing loans.

Schedule of Loans Held for Investment on Nonaccrual Status

The following table presents loans held for investment on nonaccrual status by loan class for the dates indicated:

(dollars in thousands)
	March 31, 2016		December 31, 2015
Loans held for investment:
Commercial and agricultural	$	810	$	1,053
Real estate - construction	84		110
Real estate - mortgage:
1-4 family residential	9,434		9,106
Commercial	7,509		7,209
Consumer	580		538
Total nonaccrual loans	18,417		18,016
Loans more than 90 days delinquent, still on accrual	—		817
Total nonperforming loans	$	18,417	$	18,833

Schedule of Impaired Loans

The following table presents individually reviewed impaired loans and purchased impaired loans with subsequent credit deterioration, segregated by portfolio segment, and the corresponding allowance for loan losses as of March 31, 2016:

			Unpaid
(dollars in thousands)	Recorded		Principal		Related
	Investment		Balance		Allowance
Individually reviewed impaired loans with no related allowance recorded:
Commercial and agricultural	$	392	$	479	$	—
Real estate - construction	755		921		—
Real estate - mortgage:
1-4 family residential	6,691		8,481		—
Commercial	12,710		17,944		—
Consumer	—		—		—
Total	20,548		27,825		—
Individually reviewed impaired loans with an allowance recorded:
Commercial and agricultural	—		—		—
Real estate - construction	—		—		—
Real estate - mortgage:
1-4 family residential	4,278		5,376		380
Commercial	247		291		4
Consumer	—		—		—
Total	4,525		5,667		384
Total individually reviewed impaired loans:
Commercial and agricultural	392		479		—
Real estate - construction	755		921		—
Real estate - mortgage:
1-4 family residential	10,969		13,857		380
Commercial	12,957		18,235		4
Consumer	—		—		—
Total	$	25,073	$	33,492	$	384
PI loans with subsequent credit deterioration:
Commercial and agricultural	$	4,751	$	3,691	$	281
Real estate - construction	6,934		7,697		557
Real estate - mortgage:
1-4 family residential	10,652		10,739		336
Commercial	58,321		57,885		1,456
Consumer	861		553		124
Total	$	81,519	$	80,565	$	2,754

The following table presents individually reviewed impaired loans, and purchased impaired loans with subsequent credit deterioration, segregated by portfolio segment, and the corresponding allowance for loan losses as of December 31, 2015:

			Unpaid
(dollars in thousands)	Recorded		Principal		Related
	Investment		Balance		Allowance
Individually reviewed impaired loans with no related allowance recorded:
Commercial and agricultural	$	399	$	479	$	—
Real estate - construction	775		939		—
Real estate - mortgage:
1-4 family residential	7,418		9,406		—
Commercial	13,820		19,116		—
Consumer	—		—		—
Total	22,412		29,940		—
Individually reviewed impaired loans with an allowance recorded:
Commercial and agricultural	—		—		—
Real estate - construction	—		—		—
Real estate - mortgage:
1-4 family residential	3,817		4,691		399
Commercial	—		—		—
Consumer	—		—		—
Total	3,817		4,691		399
Total individually reviewed impaired loans:
Commercial and agricultural	399		479		—
Real estate - construction	775		939		—
Real estate - mortgage:
1-4 family residential	11,235		14,097		399
Commercial	13,820		19,116		—
Consumer	—		—		—
Total	$	26,229	$	34,631	$	399
PI loans with subsequent credit deterioration:
Commercial and agricultural	$	4,995	$	3,908	$	311
Real estate - construction	7,323		8,121		579
Real estate - mortgage:
1-4 family residential	11,103		11,327		384
Commercial	59,989		60,582		1,356
Consumer	919		598		124
Total	$	84,329	$	84,536	$	2,754

Schedule of Individually Reviewed Impaired Loans

Average recorded investment and interest income recognized on impaired loans, segregated by portfolio segment, is shown in the following table as of March 31, 2016 and March 31, 2015:

	For Three Months Ended				For Three Months Ended
	March 31, 2016				March 31, 2015
	Average		Interest		Average		Interest
(dollars in thousands)	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
Individually reviewed impaired loans with no related allowance recorded:
Commercial and agricultural	$	395	$	—	$	478	$	—
Real estate - construction	762		14		1,276		11
Real estate - mortgage:
1-4 family residential	6,717		27		7,925		31
Commercial	12,828		93		13,081		73
Consumer	—		—		—		—
Total	20,702		134		22,760		115
Individually reviewed impaired loans with an allowance recorded:
Commercial and agricultural	—		—		—		—
Real estate - construction	—		—		—		—
Real estate - mortgage:
1-4 family residential	4,288		20		3,744		19
Commercial	249		—		3,830		52
Consumer	—		—		—		—
Total	4,537		20		7,574		71
Total individually reviewed impaired loans:
Commercial and agricultural	395		—		478		—
Real estate - construction	762		14		1,276		11
Real estate - mortgage:
1-4 family residential	11,005		47		11,669		50
Commercial	13,077		93		16,911		125
Consumer	—		—		—		—
Total	$	25,239	$	154	$	30,334	$	186

Summary of Balances of Granite Purchased Loans

The following table presents the balance of all Granite Purchased Loans:

	At March 31, 2016
(dollars in thousands)	Purchased Impaired		Purchased Contractual		Total Purchased Loans		Unpaid Principal Balance
Commercial and agricultural	$	4,751	$	156	$	4,907	$	3,848
Real estate - construction	7,274		—		7,274		8,070
Real estate - mortgage:
1-4 family residential	13,420		17,470		30,890		31,442
Commercial	58,321		—		58,321		57,885
Consumer	861		—		861		553
Total	$	84,627	$	17,626	$	102,253	$	101,798

	At December 31, 2015
(dollars in thousands)	Purchased Impaired		Purchased Contractual		Total Purchased Loans		Unpaid Principal Balance
Commercial and agricultural	$	4,995	$	238	$	5,233	$	4,149
Real estate - construction	7,744		—		7,744		8,579
Real estate - mortgage:
1-4 family residential	13,917		17,915		31,832		32,558
Commercial	59,989		—		59,989		60,582
Consumer	919		—		919		598
Total	$	87,564	$	18,153	$	105,717	$	106,466

Summary of Purchased Loans Accounted for Under the Expected Cash Flow Method

This table does not include PC loans, including Granite PC loans or purchased residential mortgage loan pools.

	For Three Months Ended						For Three Months Ended
	March 31, 2016						March 31, 2015
	Purchased Impaired						Purchased Impaired
(dollars in thousands)	Carrying Amount			Future Accretion			Carrying Amount			Future Accretion
Balance, beginning of period	$	87,564		$	15,623		$	122,842		$	24,898
Accretion	1,406			(1,406		)	2,048			(2,048		)
Increase (Decrease) in future accretion	—			(2		)	—			(1,925		)
Payments received	(4,343		)	—			(14,854		)	—
Foreclosed and transferred to OREO	—			—			(774		)	—
Subtotal before allowance	84,627			14,215			109,262			20,925
Allowance for credit losses	(2,754		)	—			(3,194		)	—
Net carrying amount, end of period	$	81,873		$	14,215		$	106,068		$	20,925

Summary of Allowance for Loan Losses

An analysis of the changes in the ALL is as follows:

	For Three Months Ended
(dollars in thousands)	March 31, 2016			March 31, 2015
Balance, beginning of period	$	15,195		$	20,345
Recovery of losses charged to continuing operations	(535		)	(1,137		)
Net charge-offs:
Charge-offs	(1,094		)	(994		)
Recoveries	674			794
Net charge-offs	(420		)	(200		)
Balance, end of period	$	14,240		$	19,008
Annualized net charge-offs during the period to average loans held for investment	0.11		%	0.06		%
Annualized net charge-offs during the period to ALL	11.83		%	4.27		%
Allowance for loan losses to loans held for investment	0.93		%	1.36		%

Schedule of Allowance for Loan Losses by Portfolio Segment

The following table presents ALL activity by portfolio segment for the three months ended March 31, 2016:

							Real Estate - Mortgage
(dollars in thousands)	Commercial and Agricultural			Real Estate - Construction			1-4 Family Residential			Commercial		Consumer			Total
ALL:
Beginning balance January 1, 2016	$	2,402		$	1,769		$	5,141		$	2,328	$	3,555		$	15,195
Charge-offs	(159		)	—			(64		)	—		(871		)	(1,094		)
Recoveries	253			136			130			40		115			674
Provision (recovery of provision)	(452		)	(609		)	(832		)	175		1,183			(535		)
Ending balance March 31, 2016	$	2,044		$	1,296		$	4,375		$	2,543	$	3,982		$	14,240

The following table presents ALL activity by portfolio segment for the three months ended March 31, 2015:

							Real Estate - Mortgage
(dollars in thousands)	Commercial and Agricultural			Real Estate - Construction			1-4 Family Residential			Commercial			Consumer			Total
ALL:
Beginning balance January 1, 2015	$	3,915		$	3,163		$	5,847		$	4,179		$	3,241		$	20,345
Charge-offs	(49		)	(81		)	(125		)	(7		)	(732		)	(994		)
Recoveries	221			196			138			58			181			794
Provision (recovery of provision)	(689		)	(158		)	(237		)	(1,078		)	1,025			(1,137		)
Ending balance March 31, 2015	$	3,398		$	3,120		$	5,623		$	3,152		$	3,715		$	19,008

Schedule of Recorded Investment by Portfolio Segment

The following table details the recorded investment in loans related to each segment in the allowance for loan losses by portfolio segment and disaggregated on the basis of impairment evaluation methodology at March 31, 2016:

					Real Estate - Mortgage
(dollars in thousands)	Commercial and Agricultural		Real Estate - Construction		1-4 Family Residential		Commercial		Consumer		Total
ALL:
Individually reviewed for impairment	$	—	$	—	$	380	$	4	$	—	$	384
Collectively reviewed for impairment	1,763		739		3,659		1,083		3,858		11,102
PI loans reviewed for credit impairment	281		557		336		1,456		124		2,754
PI loans with no credit deterioration	—		—		—		—		—		—
Total ALL	$	2,044	$	1,296	$	4,375	$	2,543	$	3,982	$	14,240
Loans held for investment:
Individually reviewed for impairment	$	392	$	755	$	10,969	$	12,957	$	—	$	25,073
Collectively reviewed for impairment	149,877		94,973		627,381		426,694		115,781		1,414,706
PI loans with subsequent credit deterioration	4,751		6,934		10,652		58,321		861		81,519
PI loans with no credit deterioration	—		340		2,768		—		—		3,108
Total loans	$	155,020	$	103,002	$	651,770	$	497,972	$	116,642	$	1,524,406

The following table details the recorded investment in loans related to each segment in the allowance for loan losses by portfolio segment and disaggregated on the basis of impairment evaluation methodology at December 31, 2015:

					Real Estate - Mortgage
(dollars in thousands)	Commercial and Agricultural		Real Estate - Construction		1-4 Family Residential		Commercial		Consumer		Total
ALL:
Individually reviewed for impairment	$	—	$	—	$	399	$	—	$	—	$	399
Collectively reviewed for impairment	2,091		1,190		4,358		972		3,431		12,042
PI loans reviewed for credit impairment	311		579		384		1,356		124		2,754
PI loans with no credit deterioration	—		—		—		—		—		—
Total ALL	$	2,402	$	1,769	$	5,141	$	2,328	$	3,555	$	15,195
Loans held for investment:
Individually reviewed for impairment	$	399	$	775	$	11,235	$	13,820	$	—	$	26,229
Collectively reviewed for impairment	146,912		98,483		662,402		415,304		106,901		1,430,002
PI loans with subsequent credit deterioration	4,995		7,323		11,103		59,989		919		84,329
PI loans with no credit deterioration	—		421		2,814		—		—		3,235
Total loans	$	152,306	$	107,002	$	687,554	$	489,113	$	107,820	$	1,543,795

Summary of Troubled Debt Restructurings

The following table presents a breakdown of troubled debt restructurings that were restructured during the three and three months ended March 31, 2016 and March 31, 2015, respectively, segregated by portfolio segment:

	For Three Months Ended March 31, 2016					For Three Months Ended March 31, 2015
		Pre-Modification		Post-Modification			Pre-Modification		Post-Modification
		Outstanding		Outstanding			Outstanding		Outstanding
(dollars in thousands)	Number	Recorded		Recorded		Number	Recorded		Recorded
	of Loans	Investment		Investment		of Loans	Investment		Investment
Commercial and agricultural	—	$	—	$	—	—	$	—	$	—
Real estate - construction	—	—		—		—	—		—
Real estate - mortgage:
1-4 family residential	—	—		—		—	—		—
Commercial	2	332		332		—	—		—
Consumer	—	—		—		—	—		—
Total	2	$	332	$	332	—	$	—	$	—