LOANS AND ALLOWANCE FOR LOAN LOSSES

9 Months Ended

Sep. 30, 2017

Loans and Leases Receivable Disclosure [Abstract]

LOANS AND ALLOWANCE FOR LOAN LOSSES

LOANS AND ALLOWANCE FOR LOAN LOSSES

Loans are stated at their face amount, net of deferred fees and costs, and consist of the following at September 30, 2017 and December 31, 2016 (dollars in thousands):

	September 30, 2017		December 31, 2016
Construction and Land Development	$	841,738	$	751,131
Commercial Real Estate - Owner Occupied	903,523		857,805
Commercial Real Estate - Non-Owner Occupied	1,748,039		1,564,295
Multifamily Real Estate	368,686		334,276
Commercial & Industrial	554,522		551,526
Residential 1-4 Family	1,083,112		1,029,547
Auto	276,572		262,071
HELOC	535,446		526,884
Consumer and all other	587,091		429,525
Total loans held for investment, net (1)	$	6,898,729	$	6,307,060

(1)Loans, as presented, are net of deferred fees and costs totaling $335,000 and $1.8 million as of September 30, 2017 and December 31, 2016, respectively.

The following table shows the aging of the Company’s loan portfolio, by segment, at September 30, 2017 (dollars in thousands):

	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days and still Accruing		PCI		Nonaccrual		Current		Total Loans
Construction and Land Development	$	7,221	$	100	$	54	$	3,026	$	5,671	$	825,666	$	841,738
Commercial Real Estate - Owner Occupied	1,707		689		679		17,668		2,205		880,575		903,523
Commercial Real Estate - Non-Owner Occupied	909		571		298		14,376		2,701		1,729,184		1,748,039
Multifamily Real Estate	—		—		—		77		—		368,609		368,686
Commercial & Industrial	1,558		255		101		625		1,252		550,731		554,522
Residential 1-4 Family	5,633		1,439		2,360		14,077		6,163		1,053,440		1,083,112
Auto	2,415		293		143		—		174		273,547		276,572
HELOC	1,400		628		709		982		1,791		529,936		535,446
Consumer and all other	3,469		1,445		188		210		165		581,614		587,091
Total loans held for investment	$	24,312	$	5,420	$	4,532	$	51,041	$	20,122	$	6,793,302	$	6,898,729

The following table shows the aging of the Company’s loan portfolio, by segment, at December 31, 2016 (dollars in thousands):

	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days and still Accruing		PCI		Nonaccrual		Current		Total Loans
Construction and Land Development	$	1,162	$	232	$	76	$	2,922	$	2,037	$	744,702	$	751,131
Commercial Real Estate - Owner Occupied	1,842		109		35		18,343		794		836,682		857,805
Commercial Real Estate - Non-Owner Occupied	2,369		—		—		17,303		—		1,544,623		1,564,295
Multifamily Real Estate	147		—		—		2,066		—		332,063		334,276
Commercial & Industrial	759		858		9		1,074		124		548,702		551,526
Residential 1-4 Family	7,038		534		2,048		16,200		5,279		998,448		1,029,547
Auto	2,570		317		111		—		169		258,904		262,071
HELOC	1,836		1,140		635		1,161		1,279		520,833		526,884
Consumer and all other	2,522		1,431		91		223		291		424,967		429,525
Total loans held for investment	$	20,245	$	4,621	$	3,005	$	59,292	$	9,973	$	6,209,924	$	6,307,060

The following table shows the PCI loan portfolios, by segment and their delinquency status, at September 30, 2017 (dollars in thousands):

	30-89 Days Past Due		Greater than 90 Days		Current		Total
Construction and Land Development	$	62	$	—	$	2,964	$	3,026
Commercial Real Estate - Owner Occupied	463		643		16,562		17,668
Commercial Real Estate - Non-Owner Occupied	318		1,032		13,026		14,376
Multifamily Real Estate	—		—		77		77
Commercial & Industrial	—		—		625		625
Residential 1-4 Family	949		1,125		12,003		14,077
HELOC	132		128		722		982
Consumer and all other	34		—		176		210
Total	$	1,958	$	2,928	$	46,155	$	51,041

The following table shows the PCI loan portfolios, by segment and their delinquency status, at December 31, 2016 (dollars in thousands):

	30-89 Days Past Due		Greater than 90 Days		Current		Total
Construction and Land Development	$	—	$	84	$	2,838	$	2,922
Commercial Real Estate - Owner Occupied	271		519		17,553		18,343
Commercial Real Estate - Non-Owner Occupied	409		126		16,768		17,303
Multifamily Real Estate	—		—		2,066		2,066
Commercial & Industrial	44		56		974		1,074
Residential 1-4 Family	1,298		945		13,957		16,200
HELOC	175		121		865		1,161
Consumer and all other	—		—		223		223
Total	$	2,197	$	1,851	$	55,244	$	59,292

The Company measures the amount of impairment by evaluating loans either in their collective homogeneous pools or individually. The following table shows the Company’s impaired loans, excluding PCI loans, by segment at September 30, 2017 and December 31, 2016 (dollars in thousands):

	September 30, 2017						December 31, 2016
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Loans without a specific allowance
Construction and Land Development	$	13,889	$	13,981	$	—	$	13,877	$	14,353	$	—
Commercial Real Estate - Owner Occupied	5,238		5,378		—		5,886		6,042		—
Commercial Real Estate - Non-Owner Occupied	5,548		5,636		—		1,399		1,399		—
Commercial & Industrial	1,632		1,880		—		648		890		—
Residential 1-4 Family	9,510		10,523		—		8,496		9,518		—
HELOC	1,651		1,741		—		1,017		1,094		—
Consumer and all other	521		631		—		230		427		—
Total impaired loans without a specific allowance	$	37,989	$	39,770	$	—	$	31,553	$	33,723	$	—
Loans with a specific allowance
Construction and Land Development	$	1,347	$	1,444	$	113	$	1,395	$	1,404	$	107
Commercial Real Estate - Owner Occupied	2,118		2,132		157		646		646		4
Commercial Real Estate - Non-Owner Occupied	2,032		2,032		42		2,809		2,809		474
Commercial & Industrial	2,511		2,562		909		857		880		14
Residential 1-4 Family	4,421		4,543		249		3,335		3,535		200
Auto	174		235		1		169		235		1
HELOC	766		800		56		323		433		15
Consumer and all other	242		310		43		62		298		1
Total impaired loans with a specific allowance	$	13,611	$	14,058	$	1,570	$	9,596	$	10,240	$	816
Total impaired loans	$	51,600	$	53,828	$	1,570	$	41,149	$	43,963	$	816

The following tables show the average recorded investment and interest income recognized for the Company’s impaired loans, excluding PCI loans, by segment for the three and nine months ended September 30, 2017 and 2016 (dollars in thousands):

	Three Months Ended September 30, 2017				Nine Months Ended September 30, 2017
	Average Investment		Interest Income Recognized		Average Investment		Interest Income Recognized
Construction and Land Development	$	15,654	$	128	$	15,378	$	368
Commercial Real Estate - Owner Occupied	7,354		62		7,407		245
Commercial Real Estate - Non-Owner Occupied	7,597		57		7,584		185
Commercial & Industrial	4,139		36		4,203		121
Residential 1-4 Family	14,218		94		14,358		261
Auto	192		—		223		2
HELOC	2,460		7		2,492		29
Consumer and all other	800		8		690		20
Total impaired loans	$	52,414	$	392	$	52,335	$	1,231

	Three Months Ended September 30, 2016				Nine Months Ended September 30, 2016
	Average Investment		Interest Income Recognized		Average Investment		Interest Income Recognized
Construction and Land Development	$	28,195	$	464	$	27,645	$	1,346
Commercial Real Estate - Owner Occupied	7,691		72		7,862		230
Commercial Real Estate - Non-Owner Occupied	3,777		33		3,759		98
Commercial & Industrial	4,628		42		4,964		134
Residential 1-4 Family	13,106		89		13,439		267
Auto	271		—		289		4
HELOC	2,118		7		2,185		35
Consumer and all other	453		—		620		6
Total impaired loans	$	60,239	$	707	$	60,763	$	2,120

The Company considers TDRs to be impaired loans. A modification of a loan’s terms constitutes a TDR if the creditor grants a concession that it would not otherwise consider to the borrower for economic or legal reasons related to the borrower’s financial difficulties. All loans that are considered to be TDRs are evaluated for impairment in accordance with the Company’s allowance for loan loss methodology and are included in the preceding impaired loan tables. For the three and nine months ended September 30, 2017, the recorded investment in TDRs prior to modifications was not materially impacted by the modification.

The following table provides a summary, by segment, of TDRs that continue to accrue interest under the terms of the restructuring agreement, which are considered to be performing, and TDRs that have been placed on nonaccrual status, which are considered to be nonperforming, as of September 30, 2017 and December 31, 2016 (dollars in thousands):

	September 30, 2017					December 31, 2016
	No. of Loans	Recorded Investment		Outstanding Commitment		No. of Loans	Recorded Investment		Outstanding Commitment
Performing
Construction and Land Development	7	$	2,841	$	—	8	$	3,793	$	—
Commercial Real Estate - Owner Occupied	7	2,934		—		7	3,106		—
Commercial Real Estate - Non-Owner Occupied	3	2,196		—		2	2,390		—
Commercial & Industrial	12	2,112		—		3	533		—
Residential 1-4 Family	34	5,941		—		28	4,145		—
Consumer and all other	1	495		—		—	—		—
Total performing	64	$	16,519	$	—	48	$	13,967	$	—
Nonperforming
Construction and Land Development	5	$	400	$	—	2	$	215	$	—
Commercial Real Estate - Owner Occupied	2	142		—		2	156		—
Commercial & Industrial	5	1,062		—		1	116		—
Residential 1-4 Family	8	1,095		—		8	948		—
Consumer and all other	1	26		—		—	—		—
Total nonperforming	21	$	2,725	$	—	13	$	1,435	$	—
Total performing and nonperforming	85	$	19,244	$	—	61	$	15,402	$	—

The Company considers a default of a TDR to occur when the borrower is 90 days past due following the restructure or a foreclosure and repossession of the applicable collateral occurs. The following table shows, by segment, TDRs that were identified by the Company as going into default during the period shown that were restructured in the prior twelve-month period (dollars in thousands):

	Three Months Ended September 30, 2017			Nine Months Ended September 30, 2017
	No. of Loans	Recorded  Investment		No. of Loans	Recorded  Investment
Construction and Land Development	—	$	—	2	$	198
Commercial Real Estate - Owner Occupied	—	—		1	469
Commercial & Industrial	1	350		1	350
Residential 1-4 Family	2	187		4	605
Total	3	$	537	8	$	1,622

During the three and nine months ended September 30, 2016, the Company identified one loan, totaling approximately $23,000, that went into default that had been restructured in the twelve-month period prior to the time of default. This loan was a commercial real estate - owner occupied loan that had a term modification at a market rate.

The following table shows, by segment and modification type, TDRs that occurred during the three and nine months ended September 30, 2017 (dollars in thousands):

	Three Months Ended September 30, 2017			Nine Months Ended September 30, 2017
	No. of Loans	Recorded  Investment at Period End		No. of Loans	Recorded  Investment at Period End
Modified to interest only, at a market rate
Commercial & Industrial	3	$	936	8	$	1,596
Total interest only at market rate of interest	3	$	936	8	$	1,596
Term modification, at a market rate
Construction and Land Development	1	$	160	4	$	1,150
Commercial Real Estate - Owner Occupied	1	380		1	380
Commercial Real Estate - Non-Owner Occupied	1	571		3	2,196
Commercial & Industrial	—	—		4	969
Residential 1-4 Family	3	1,647		8	2,574
Consumer and all other	1	26		2	522
Total loan term extended at a market rate	7	$	2,784	22	$	7,791
Term modification, below market rate
Commercial Real Estate - Owner Occupied	—	$	—	1	$	841
Commercial & Industrial	—	—		3	179
Residential 1-4 Family	1	40		8	1,143
Total loan term extended at a below market rate	1	$	40	12	$	2,163
Total	11	$	3,760	42	$	11,550

The following table shows, by segment and modification type, TDRs that occurred during the three and nine months ended September 30, 2016 (dollars in thousands):

	Three Months Ended September 30, 2016			Nine Months Ended September 30, 2016
	No. of Loans	Recorded  Investment at Period End		No. of Loans	Recorded  Investment at Period End
Term modification, at a market rate
Construction and Land Development	—	$	—	1	$	1,177
Commercial Real Estate - Owner Occupied	—	—		2	739
Commercial & Industrial	1	457		1	457
Residential 1-4 Family	—	—		2	474
Total loan term extended at a market rate	1	$	457	6	$	2,847
Term modification, below market rate
Residential 1-4 Family	—	$	—	1	$	36
Total loan term extended at a below market rate	—	$	—	1	$	36
Interest rate modification, below market rate
Commercial & Industrial	—	$	—	1	$	125
Total interest only at below market rate of interest	—	$	—	1	$	125
Total	1	$	457	8	$	3,008

The following table shows the allowance for loan loss activity, balances for allowance for loan losses, and loan balances based on impairment methodology by segment for the nine months ended and as of September 30, 2017. The table below includes the provision for loan losses. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands):

	Allowance for loan losses
	Balance, beginning of the year		Recoveries credited to allowance		Loans charged off			Provision charged to operations			Balance, end of period
Construction and Land Development	$	10,055	$	193	$	(2,115	)	$	535		$	8,668
Commercial Real Estate - Owner Occupied	3,801		84		(46		)	(620		)	3,219
Commercial Real Estate - Non-Owner Occupied	6,622		2		(1,181		)	1,825			7,268
Multifamily Real Estate	1,236		—		—			(136		)	1,100
Commercial & Industrial	4,627		451		(1,241		)	1,526			5,363
Residential 1-4 Family	6,399		332		(815		)	(35		)	5,881
Auto	946		352		(761		)	398			935
HELOC	1,328		240		(861		)	675			1,382
Consumer and all other	2,178		905		(2,929		)	3,192			3,346
Total	$	37,192	$	2,559	$	(9,949	)	$	7,360		$	37,162

	Loans individually evaluated for impairment				Loans collectively evaluated for impairment				Loans acquired with deteriorated credit quality				Total
	Loans		ALL		Loans		ALL		Loans		ALL		Loans		ALL
Construction and Land Development	$	15,236	$	113	$	823,476	$	8,555	$	3,026	$	—	$	841,738	$	8,668
Commercial Real Estate - Owner Occupied	7,356		157		878,499		3,062		17,668		—		903,523		3,219
Commercial Real Estate - Non-Owner Occupied	7,580		42		1,726,083		7,226		14,376		—		1,748,039		7,268
Multifamily Real Estate	—		—		368,609		1,100		77		—		368,686		1,100
Commercial & Industrial	4,143		909		549,754		4,454		625		—		554,522		5,363
Residential 1-4 Family	13,931		249		1,055,104		5,632		14,077		—		1,083,112		5,881
Auto	174		1		276,398		934		—		—		276,572		935
HELOC	2,417		56		532,047		1,326		982		—		535,446		1,382
Consumer and all other	763		43		586,118		3,303		210		—		587,091		3,346
Total loans held for investment, net	$	51,600	$	1,570	$	6,796,088	$	35,592	$	51,041	$	—	$	6,898,729	$	37,162

The following table shows the allowance for loan loss activity, balances for allowance for loan losses, and loan balances based on impairment methodology by segment for the nine months ended and as of September 30, 2016. In addition, a $175,000 provision was recognized during the nine months ended September 30, 2016 for unfunded loan commitments for which the reserves are recorded as a component of “Other Liabilities” on the Company’s Consolidated Balance Sheets. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands):

	Allowance for loan losses
	Balance, beginning of the year		Recoveries credited to allowance		Loans charged off			Provision charged to operations			Balance, end of period
Construction and Land Development	$	6,040	$	165	$	(869	)	$	5,464		$	10,800
Commercial Real Estate - Owner Occupied	4,614		112		(772		)	(770		)	3,184
Commercial Real Estate - Non-Owner Occupied	6,929		3		(1		)	(813		)	6,118
Multifamily Real Estate	1,606		—		—			(658		)	948
Commercial & Industrial	3,163		422		(1,301		)	3,119			5,403
Residential 1-4 Family	5,414		466		(741		)	518			5,657
Auto	1,703		243		(815		)	(260		)	871
HELOC	2,934		229		(1,272		)	(534		)	1,357
Consumer and all other	1,644		382		(957		)	1,135			2,204
Total	$	34,047	$	2,022	$	(6,728	)	$	7,201		$	36,542

	Loans individually evaluated for impairment				Loans collectively evaluated for impairment				Loans acquired with deteriorated credit quality				Total
	Loans		ALL		Loans		ALL		Loans		ALL		Loans		ALL
Construction and Land Development	$	27,241	$	123	$	745,984	$	10,677	$	3,205	$	—	$	776,430	$	10,800
Commercial Real Estate - Owner Occupied	7,612		5		830,466		3,179		19,064		—		857,142		3,184
Commercial Real Estate - Non-Owner Occupied	3,792		1		1,432,895		6,117		18,141		—		1,454,828		6,118
Multifamily Real Estate	—		—		337,234		948		2,079		—		339,313		948
Commercial & Industrial	3,448		642		505,264		4,761		1,145		—		509,857		5,403
Residential 1-4 Family	12,673		115		969,860		5,542		16,828		—		999,361		5,657
Auto	231		1		254,957		870		—		—		255,188		871
HELOC	2,053		17		520,546		1,340		1,498		—		524,097		1,357
Consumer and all other	451		88		431,865		2,116		386		—		432,702		2,204
Total loans held for investment, net	$	57,501	$	992	$	6,029,071	$	35,550	$	62,346	$	—	$	6,148,918	$	36,542

The Company uses a risk rating system and past due status as the primary credit quality indicators for the loan categories. The risk rating system on a scale of 0 through 9 is used to determine risk level as used in the calculation of the allowance for loan losses; on those loans without a risk rating, the Company uses past due status to determine risk level. The risk levels, as described below, do not necessarily follow the regulatory definitions of risk levels with the same name. A general description of the characteristics of the risk levels follows:

Pass is determined by the following criteria:

•Risk rated 0 loans have little or no risk and are with General Obligation Municipal Borrowers;

•Risk rated 1 loans have little or no risk and are generally secured by cash or cash equivalents;

•Risk rated 2 loans have minimal risk to well qualified borrowers and no significant questions as to safety;

•Risk rated 3 loans are satisfactory loans with strong borrowers and secondary sources of repayment;

•Risk rated 4 loans are satisfactory loans with borrowers not as strong as risk rated 3 loans and may exhibit a greater

degree of financial risk based on the type of business supporting the loan; or

•Loans that are not risk rated but that are 0 to 29 days past due.

Special Mention is determined by the following criteria:

•Risk rated 5 loans are watch loans that warrant more than the normal level of supervision and have the possibility of an

event occurring that may weaken the borrower’s ability to repay;

•Risk rated 6 loans have increasing potential weaknesses beyond those at which the loan originally was granted and if

not addressed could lead to inadequately protecting the Company’s credit position; or

•Loans that are not risk rated but that are 30 to 89 days past due.

Substandard is determined by the following criteria:

•Risk rated 7 loans are substandard loans and are inadequately protected by the current sound worth or paying capacity

of the obligor or the collateral pledged; these have well defined weaknesses that jeopardize the liquidation of the debt

with the distinct possibility the Company will sustain some loss if the deficiencies are not corrected; or

•Loans that are not risk rated but that are 90 to 149 days past due.

Doubtful is determined by the following criteria:

•Risk rated 8 loans are doubtful of collection and the possibility of loss is high but pending specific borrower plans for

recovery, its classification as a loss is deferred until its more exact status is determined;

•Risk rated 9 loans are loss loans which are considered uncollectable and of such little value that their continuance as

    bankable assets is not warranted; or

•Loans that are not risk rated but that are over 149 days past due.

The following table shows the recorded investment in all loans, excluding PCI loans, by segment with their related risk level as of September 30, 2017 (dollars in thousands):

	Pass		Special Mention		Substandard		Doubtful		Total
Construction and Land Development	$	768,206	$	57,190	$	13,201	$	115	$	838,712
Commercial Real Estate - Owner Occupied	834,265		47,019		4,571		—		885,855
Commercial Real Estate - Non-Owner Occupied	1,702,500		23,764		7,399		—		1,733,663
Multifamily Real Estate	361,175		7,434		—		—		368,609
Commercial & Industrial	534,594		16,400		2,903		—		553,897
Residential 1-4 Family	1,045,736		15,878		4,480		2,941		1,069,035
Auto	273,446		2,910		143		73		276,572
HELOC	530,263		2,427		1,051		723		534,464
Consumer and all other	583,728		2,618		530		5		586,881
Total	$	6,633,913	$	175,640	$	34,278	$	3,857	$	6,847,688

The following table shows the recorded investment in all loans, excluding PCI loans, by segment with their related risk level as of December 31, 2016 (dollars in thousands):

	Pass		Special Mention		Substandard		Doubtful		Total
Construction and Land Development	$	667,018	$	69,311	$	11,857	$	23	$	748,209
Commercial Real Estate - Owner Occupied	801,565		32,364		5,533		—		839,462
Commercial Real Estate - Non-Owner Occupied	1,505,153		37,631		4,208		—		1,546,992
Multifamily Real Estate	312,711		19,499		—		—		332,210
Commercial & Industrial	539,999		9,391		1,062		—		550,452
Residential 1-4 Family	986,973		18,518		4,813		3,043		1,013,347
Auto	258,188		3,648		135		100		262,071
HELOC	519,928		4,225		969		601		525,723
Consumer and all other	425,520		3,491		40		251		429,302
Total	$	6,017,055	$	198,078	$	28,617	$	4,018	$	6,247,768

The following table shows the recorded investment in only PCI loans by segment with their related risk level as of September 30, 2017 (dollars in thousands):

	Pass		Special Mention		Substandard		Doubtful		Total
Construction and Land Development	$	1,460	$	1,311	$	255	$	—	$	3,026
Commercial Real Estate - Owner Occupied	5,521		8,237		3,910		—		17,668
Commercial Real Estate - Non-Owner Occupied	10,676		2,435		1,265		—		14,376
Multifamily Real Estate	—		77		—		—		77
Commercial & Industrial	94		309		222		—		625
Residential 1-4 Family	7,498		4,227		1,577		775		14,077
HELOC	722		132		6		122		982
Consumer and all other	154		46		10		—		210
Total	$	26,125	$	16,774	$	7,245	$	897	$	51,041

The following table shows the recorded investment in only PCI loans by segment with their related risk level as of December 31, 2016 (dollars in thousands):

	Pass		Special Mention		Substandard		Doubtful		Total
Construction and Land Development	$	1,092	$	1,432	$	398	$	—	$	2,922
Commercial Real Estate - Owner Occupied	5,520		8,889		3,934		—		18,343
Commercial Real Estate - Non-Owner Occupied	10,927		4,638		1,738		—		17,303
Multifamily Real Estate	343		1,723		—		—		2,066
Commercial & Industrial	107		480		487		—		1,074
Residential 1-4 Family	8,557		4,455		2,672		516		16,200
HELOC	857		183		7		114		1,161
Consumer and all other	166		37		20		—		223
Total	$	27,569	$	21,837	$	9,256	$	630	$	59,292

Loans acquired are originally recorded at fair value, with certain loans being identified as impaired at the date of purchase. The fair values were determined based on the credit quality of the portfolio, expected future cash flows, and timing of those expected future cash flows.

The following shows changes in the accretable yield for loans accounted for under ASC 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality, for the periods presented (dollars in thousands):

	For the Nine Months Ended September 30,
	2017			2016
Balance at beginning of period	$	19,739		$	22,139
Accretion	(4,896		)	(4,232		)
Reclass of nonaccretable difference due to improvement in expected cash flows	2,175			3,580
Other, net (1)	(452		)	(1,149		)
Balance at end of period	$	16,566		$	20,338

(1)This line item represents changes in the cash flows expected to be collected due to the impact of non-credit changes such as prepayment assumptions, changes in interest rates on variable rate PCI loans, and discounted payoffs that occurred in the quarter.

The carrying value of the Company’s PCI loan portfolio, accounted for under ASC 310-30, totaled $51.0 million at September 30, 2017 and $59.3 million at December 31, 2016. The outstanding balance of the Company’s PCI loan portfolio totaled $62.8 million at September 30, 2017 and $73.6 million at December 31, 2016. The carrying value of the Company’s acquired performing loan portfolio, accounted for under ASC 310-20, Receivables – Nonrefundable Fees and Other Costs, totaled $942.0 million at September 30, 2017 and $1.1 billion at December 31, 2016; the remaining discount on these loans totaled $14.6 million at September 30, 2017 and $16.9 million at December 31, 2016.