REPUBLIC BANCORP INC /KY/ - 10-K filing on 2017-03-10

LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables)

12 Months Ended

Dec. 31, 2016

Loans and allowance for loan and losses

Schedule of composition of loan portfolio


December 31, (in thousands)	2016		2015

Residential real estate:
Owner occupied	$	1,000,148	$	1,081,934
Owner occupied - correspondent*		149,028		249,344
Nonowner occupied		156,605		116,294
Commercial real estate		1,023,981		824,887
Commercial real estate - purchased whole loans*		36,515		35,674
Construction & land development		119,650		66,500
Commercial & industrial		265,721		229,721
Lease financing receivables		13,614		8,905
Warehouse lines of credit*		585,439		386,729
Home equity		341,285		289,194
Consumer:
RPG loans*		32,252		7,204
Credit cards		13,414		11,068
Overdrafts		803		685
Automobile loans		52,579		6,473
Other consumer		19,744		11,998

Total loans**		3,810,778		3,326,610
Allowance for loan and lease losses		(32,920)		(27,491)

Total loans, net	$	3,777,858	$	3,299,119

*Identifies loans to borrowers located primarily outside of the Bank’s market footprint.

**Total loans are presented inclusive of premiums, discounts and net loan origination fees and costs. See table directly below for expanded detail.

Schedule that reconciles the contractually receivable and carrying amounts of loans


December 31, (in thousands)	2016		2015

Contractual receivable	$	3,816,086	$	3,329,741
Unearned income(1)		(1,050)		(741)
Unamortized premiums(2)		1,838		3,792
Unaccreted discounts(3)		(9,397)		(7,860)
Net unamortized deferred origination fees and costs		3,301		1,678
Carrying value of loans	$	3,810,778	$	3,326,610

(1)

Relates to lease financing receivables.

(2)

Predominately relate to loans acquired through the Bank’s Correspondent Lending channel.

(3)Includes both accretable and non-accretable discounts and predominately relates to loans acquired in the Bank’s 2016 Cornerstone acquisition and 2012 FDIC-assisted transactions.

Schedule of loans purchased by class




Years Ended December 31, (in thousands)	2016		2015		2014
Residential real estate:
Owner occupied - correspondent*	$	47,446	$	113,232	$	230,340
Consumer:
Other consumer*		4,422		4,284		5,484
Total purchased loans	$	51,868	$	117,516	$	235,824

*Represents origination amount, inclusive of applicable purchase premiums.

Reconciliation of contractually-required and carrying amounts of PCI loans


December 31, (in thousands)	2016		2015

Contractually-required principal	$	15,587	$	18,250
Non-accretable amount		(1,713)		(1,582)
Accretable amount		(3,600)		(4,125)
Carrying value of loans	$	10,274	$	12,543

Rollforward of the accretable amount on PCI loans




Years Ended December 31, (in thousands)	2016		2015		2014

Balance, beginning of period	$	(4,125)	$	(2,297)	$	(3,457)
Transfers between non-accretable and accretable		(206)		(4,055)		(3,783)
Net accretion into interest income on loans, including loan fees		1,120		2,227		4,943
Generated from acquisition of Cornerstone Bancorp, Inc. (recasted)		(389)		—		—
Balance, end of period	$	(3,600)	$	(4,125)	$	(2,297)

Schedule of the risk category of loans by class of loans based on the bank's internal analysis performed


									Purchased		Purchased
									Credit		Credit
									Impaired		Impaired		Total
December 31, 2016			Special				Doubtful /		Loans -		Loans -		Rated
(in thousands)	Pass		Mention*		Substandard*		Loss		Group 1		Substandard		Loans**

Residential real estate:
Owner occupied	$	—	$	21,344	$	13,117	$	—	$	218	$	2,267	$	36,946
Owner occupied - correspondent		—		—		—		—		—		—		—
Nonowner occupied		—		656		1,115		—		523		—		2,294
Commercial real estate		1,005,622		7,086		4,224		—		7,049		—		1,023,981
Commercial real estate - purchased whole loans		36,515		—		—		—		—		—		36,515
Construction & land development		118,769		90		791		—		—		—		119,650
Commercial & industrial		264,274		1,270		154		—		23		—		265,721
Lease financing receivables		13,614						—		—		—		13,614
Warehouse lines of credit		585,439		—		—		—		—		—		585,439
Home equity		—		256		1,763		—		94		99		2,212
Consumer:
RPG loans		—		—		82		—		—		—		82
Credit cards		—		—		—		—		—		—		—
Overdrafts		—		—		—		—		—		—		—
Automobile loans		—		—		—		—		—		—		—
Other consumer		—		—		166		—		1		—		167

Total rated loans	$	2,024,233	$	30,702	$	21,412	$	—	$	7,908	$	2,366	$	2,086,621


									Purchased		Purchased
									Credit		Credit
									Impaired		Impaired		Total
December 31, 2015			Special				Doubtful /		Loans -		Loans -		Rated
(in thousands)	Pass		Mention*		Substandard*		Loss		Group 1		Substandard		Loans**

Residential real estate:
Owner occupied	$	—	$	24,301	$	14,577	$	—	$	560	$	—	$	39,438
Owner occupied - correspondent		—		—		—		—		—		—		—
Nonowner occupied		—		860		1,557		—		785		—		3,202
Commercial real estate		803,369		5,070		6,530		—		9,918		—		824,887
Commercial real estate - purchased whole loans		35,674		—		—		—		—		—		35,674
Construction & land development		63,750		96		2,621		—		33		—		66,500
Commercial & industrial		227,344		936		194		—		1,247		—		229,721
Lease financing receivables		8,905		—		—		—		—		—		8,905
Warehouse lines of credit		386,729		—		—		—		—		—		386,729
Home equity		—		21		2,296		—		—		—		2,317
Consumer:
RPG loans		—		—		—		—		—		—		—
Credit cards		—		—		—		—		—		—		—
Overdrafts		—		—		—		—		—		—		—
Automobile loans		—		—		—		—		—		—		—
Other consumer		—		28		58		—		—		—		86

Total rated loans	$	1,525,771	$	31,312	$	27,833	$	—	$	12,543	$	—	$	1,597,459

*At December 31, 2016 and 2015, Special Mention loans included $2 million and $180,000 and Substandard loans included $928,000 and $1 million, which were removed from PCI accounting in accordance with ASC 310-30-35-13 due to a post-acquisition troubled debt restructuring.

**The above tables excludes all non-classified residential real estate, home equity and consumer loans at the respective period ends.

Schedule of activity in the Allowance




December 31, (in thousands)	2016		2015		2014

Allowance, beginning of period	$	27,491	$	24,410	$	23,026

Charge-offs - Core Banking		(3,382)		(3,001)		(3,558)
Charge-offs - RPG		(8,474)		(971)		(5)
Total charge-offs		(11,856)		(3,972)		(3,563)

Recoveries - Core Banking		1,573		1,362		1,506
Recoveries - RPG		1,219		295		582
Total recoveries		2,792		1,657		2,088

Net (charge-offs) recoveries - Core Banking		(1,809)		(1,639)		(2,052)
Net (charge-offs) recoveries - RPG		(7,255)		(676)		577
Net (charge-offs) recoveries		(9,064)		(2,315)		(1,475)

Provision - Core Banking		3,945		3,065		3,392
Provision - RPG		10,548		2,331		(533)
Total provision		14,493		5,396		2,859

Allowance, end of period	$	32,920	$	27,491	$	24,410

Schedule of activity in the Allowance by portfolio class



	Residential Real Estate								Commercial
			Owner						Real Estate -						Lease
Year Ended	Owner		Occupied		Nonowner		Commercial		Purchased		Construction &		Commercial &		Financing
December 31, 2016 (in thousands)	Occupied		Correspondent		Occupied		Real Estate		Whole Loans		Land Development		Industrial		Receivables

Beginning balance	$	8,301	$	623	$	1,052	$	7,636	$	36	$	1,303	$	1,455	$	89
Provision		(1,148)		(250)		79		768		—		513		259		47
Charge-offs		(416)		—		—		(514)		—		(44)		(330)		—
Recoveries		421		—		8		152		—		78		127		—

Ending balance	$	7,158	$	373	$	1,139	$	8,042	$	36	$	1,850	$	1,511	$	136


	Warehouse				Consumer
	Lines of		Home		RPG		Credit				Automobile		Other
(continued)	Credit		Equity		Loans		Cards		Overdrafts		Loans		Consumer		Total

Beginning balance	$	967	$	2,996	$	1,699	$	448	$	351	$	56	$	479	$	27,491
Provision		497		961		10,548		154		898		481		686		14,493
Charge-offs		—		(351)		(8,474)		(164)		(816)		(12)		(735)		(11,856)
Recoveries		—		151		1,219		52		242		1		341		2,792

Ending balance	$	1,464	$	3,757	$	4,992	$	490	$	675	$	526	$	771	$	32,920



	Residential Real Estate								Commercial
			Owner						Real Estate -						Lease
Year Ended	Owner		Occupied		Nonowner		Commercial		Purchased		Construction &		Commercial &		Financing
December 31, 2015 (in thousands)	Occupied		Correspondent		Occupied		Real Estate		Whole Loans		Land Development		Industrial		Receivables

Beginning balance	$	8,565	$	567	$	837	$	7,740	$	34	$	926	$	1,167	$	25
Provision		50		56		331		344		2		377		282		64
Charge-offs		(622)		—		(126)		(546)		—		—		(56)		—
Recoveries		308		—		10		98		—		—		62		—

Ending balance	$	8,301	$	623	$	1,052	$	7,636	$	36	$	1,303	$	1,455	$	89


	Warehouse				Consumer
	Lines of		Home		RPG		Credit				Automobile		Other
(continued)	Credit		Equity		Loans		Cards		Overdrafts		Loans		Consumer		Total

Beginning balance	$	799	$	2,730	$	44	$	285	$	382	$	32	$	277	$	24,410
Provision		168		584		2,331		256		255		24		272		5,396
Charge-offs		—		(466)		(971)		(146)		(598)		—		(441)		(3,972)
Recoveries		—		148		295		53		312		—		371		1,657

Ending balance	$	967	$	2,996	$	1,699	$	448	$	351	$	56	$	479	$	27,491


									Commercial
	Residential Real Estate								Real Estate -						Lease
Year Ended	Owner		Owner Occupied -		Nonowner		Commercial		Purchased		Construction &		Commercial &		Financing
December 31, 2014 (in thousands)	Occupied		Correspondent		Occupied		Real Estate		Whole Loans		Land Development		Industrial		Receivables

Beginning balance	$	7,816	$	—	$	1,023	$	8,309	$	34	$	1,296	$	1,089	$	—
Provision		1,448		567		(28)		144		—		(441)		(16)		25
Charge-offs		(836)		—		(185)		(868)		—		(18)		(20)		—
Recoveries		137		—		27		155		—		89		114		—

Ending balance	$	8,565		567	$	837	$	7,740	$	34	$	926	$	1,167		25


	Warehouse				Consumer
	Lines of		Home		RPG		Credit				Automobile		Other
(continued)	Credit		Equity		Loans		Cards		Overdrafts		Loans		Consumer		Total

Beginning balance	$	449	$	2,396	$	—	$	289	$	199	$	54	$	72	$	23,026
Provision		350		699		(533)		49		383		(22)		234		2,859
Charge-offs		—		(548)		(5)		(88)		(591)		—		(404)		(3,563)
Recoveries		—		183		582		35		391		—		375		2,088

Ending balance	$	799	$	2,730	$	44	$	285	$	382		32	$	277	$	24,410

Schedule of non-performing loans and non-performing assets and select credit quality ratios


December 31, (dollars in thousands)	2016			2015

Loans on nonaccrual status*	$	15,892		$	21,712
Loans past due 90-days-or-more and still on accrual**		167			224

Total nonperforming loans		16,059			21,936
Other real estate owned		1,391			1,220
Total nonperforming assets	$	17,450		$	23,156

Credit Quality Ratios - Total Company:

Nonperforming loans to total loans		0.42	%		0.66	%
Nonperforming assets to total loans (including OREO)		0.46			0.70
Nonperforming assets to total assets		0.36			0.55

Credit Quality Ratios - Core Bank:

Nonperforming loans to total loans		0.42	%		0.66	%
Nonperforming assets to total loans (including OREO)		0.46			0.70
Nonperforming assets to total assets		0.36			0.55

*Loans on nonaccrual status include impaired loans.

**Loans past due 90-days-or-more and still accruing consist of PCI loans or smaller balance consumer loans.

Schedule of recorded investment in non-accrual loans and loans past due over 90-days-or-more and still on accrual by class of loans


					Past Due 90-Days-or-More
	Nonaccrual				and Still Accruing Interest*
December 31, (in thousands)	2016		2015		2016		2015

Residential real estate:
Owner occupied	$	10,955	$	13,197	$	—	$	—
Owner occupied - correspondent		—		—		—		—
Nonowner occupied		852		935		—		—
Commercial real estate		2,725		3,941		—		224
Commercial real estate - purchased whole loans		—		—		—		—
Construction & land development		77		1,589		—		—
Commercial & industrial		154		194		—		—
Lease financing receivables		—		—		—		—
Warehouse lines of credit		—		—		—		—
Home equity		1,069		1,793		—		—
Consumer:
RPG loans		—		—		82		—
Credit cards		—		—		—		—
Overdrafts		—		—		—		—
Automobile loans		—		—		—		—
Other consumer		60		63		85		—
Total	$	15,892	$	21,712	$	167	$	224

* Loans past due 90-days-or-more and still accruing consist of PCI loans or smaller balance consumer loans.

Schedule of recorded investment in loans


	Residential Real Estate								Consumer
			Owner
December 31, 2016	Owner		Occupied -		Nonowner		Home		RPG		Credit				Automobile		Other
(in thousands)	Occupied		Correspondent		Occupied		Equity		Loans		Cards		Overdrafts		Loans		Consumer

Performing	$	989,193	$	149,028	$	155,753	$	340,216	$	32,170	$	13,414	$	803	$	52,579	$	19,599
Nonperforming		10,955		—		852		1,069		82		—		—		—		145

Total	$	1,000,148	$	149,028	$	156,605	$	341,285	$	32,252	$	13,414	$	803	$	52,579	$	19,744


	Residential Real Estate								Consumer
			Owner
December 31, 2015	Owner		Occupied -		Nonowner		Home		RPG		Credit				Automobile		Other
(in thousands)	Occupied		Correspondent		Occupied		Equity		Loans		Cards		Overdrafts		Loans		Consumer

Performing	$	1,068,737	$	249,344	$	115,359	$	287,401	$	7,204	$	11,068	$	685	$	6,473	$	11,935
Nonperforming		13,197		—		935		1,793		—		—		—		—		63

Total	$	1,081,934	$	249,344	$	116,294	$	289,194	$	7,204	$	11,068	$	685	$	6,473	$	11,998

Schedule of aging of the recorded investment in loans by class of loans


	30 - 59			60 - 89			90 or More
December 31, 2016	Days			Days			Days			Total			Total
(dollars in thousands)	Delinquent			Delinquent			Delinquent*			Delinquent**			Current		Total

Residential real estate:
Owner occupied	$	1,696		$	337		$	2,521		$	4,554		$	995,594	$	1,000,148
Owner occupied - correspondent		—			—			—			—			149,028		149,028
Nonowner occupied		—			—			46			46			156,559		156,605
Commercial real estate		8			—			417			425			1,023,556		1,023,981
Commercial real estate - purchased whole loans		—			—			—			—			36,515		36,515
Construction & land development		—			—			—			—			119,650		119,650
Commercial & industrial		342			—			—			342			265,379		265,721
Lease financing receivables		—			—			—			—			13,614		13,614
Warehouse lines of credit		—			—			—			—			585,439		585,439
Home equity		316			160			494			970			340,315		341,285
Consumer:
RPG loans		1,751			304			82			2,137			30,115		32,252
Credit cards		14			4			—			18			13,396		13,414
Overdrafts		159			1			1			161			642		803
Automobile loans		—			—			—			—			52,579		52,579
Other consumer		114			106			85			305			19,439		19,744

Total	$	4,400		$	912		$	3,646		$	8,958		$	3,801,820	$	3,810,778
Delinquency ratio***		0.12	%		0.02	%		0.10	%		0.24	%

*All loans past due 90 days-or-more, excluding PCI loans, were on nonaccrual status.

**Delinquent status may be determined by either the number of days past due or number of payments past due.

***Represents total loans 30-days-or-more past due divided by total loans.


	30 - 59			60 - 89			90 or More
December 31, 2015	Days			Days			Days			Total			Total
(dollars in thousands)	Delinquent			Delinquent			Delinquent*			Delinquent**			Current		Total

Residential real estate:
Owner occupied	$	1,960		$	1,044		$	3,878		$	6,882		$	1,075,052	$	1,081,934
Owner occupied - correspondent		—			—			—			—			249,344		249,344
Nonowner occupied		14			—			39			53			116,241		116,294
Commercial real estate		178			—			933			1,111			823,776		824,887
Commercial real estate - purchased whole loans		—			—			—			—			35,674		35,674
Construction & land development		—			—			1,500			1,500			65,000		66,500
Commercial & industrial		299			—			—			299			229,422		229,721
Lease financing receivables		—			—			—			—			8,905		8,905
Warehouse lines of credit		—			—			—			—			386,729		386,729
Home equity		206			1			1,186			1,393			287,801		289,194
Consumer:
RPG loans		246			—			—			246			6,958		7,204
Credit cards		10			2			—			12			11,056		11,068
Overdrafts		133			—			—			133			552		685
Automobile loans		—			—			—			—			6,473		6,473
Other consumer		42			60			—			102			11,896		11,998

Total	$	3,088		$	1,107		$	7,536		$	11,731		$	3,314,879	$	3,326,610
Delinquency ratio***		0.09	%		0.03	%		0.23	%		0.35	%

*All loans past due 90 days-or-more, excluding PCI loans, were on nonaccrual status.

**Delinquent status may be determined by either the number of days past due or number of payments past due.

***Represents total loans 30-days-or-more past due divided by total loans.

Schedule of Bank's impaired loans


December 31, (in thousands)	2016		2015		2014

Loans with no allocated Allowance	$	21,416	$	26,143	$	32,560
Loans with allocated Allowance		31,268		39,980		53,620

Total impaired loans	$	52,684	$	66,123	$	86,180

Amount of the Allowance	$	4,925	$	5,427	$	5,564
Average of individually impaired loans during the year		56,981		74,482		92,428
Interest income recognized during impairment		1,466		1,882		4,279
Cash basis interest income recognized		—		—		—

Schedule of balance in the Allowance and the recorded investment in loans by portfolio class based on impairment method



	Residential Real Estate								Commercial
			Owner						Real Estate -						Lease
	Owner		Occupied -		Nonowner		Commercial		Purchased		Construction &		Commercial &		Financing
December 31, 2016 (in thousands)	Occupied		Correspondent		Occupied		Real Estate		Whole Loans		Land Development		Industrial		Receivables

Allowance:
Ending Allowance balance:
Individually evaluated for impairment, excluding PCI loans	$	3,203	$	—	$	65	$	532	$	—	$	120	$	227	$	—
Collectively evaluated for impairment		3,797		373		1,067		7,465		36		1,730		1,284		136
PCI loans with post acquisition impairment		158		—		7		45		—		—		—		—
PCI loans without post acquisition impairment		—		—		—		—		—		—		—		—

Total ending Allowance:	$	7,158	$	373	$	1,139	$	8,042	$	36	$	1,850	$	1,511	$	136

Loans:
Impaired loans individually evaluated, excluding PCI loans	$	31,908	$	—	$	1,601	$	11,769	$	—	$	882	$	686	$	—
Loans collectively evaluated for impairment		965,755		149,028		154,481		1,005,163		36,515		118,768		265,012		13,614
PCI loans with post acquisition impairment		2,297		—		268		1,164		—		—		—		—
PCI loans without post acquisition impairment		188		—		255		5,885		—		—		23		—

Total ending loan balance	$	1,000,148	$	149,028	$	156,605	$	1,023,981	$	36,515	$	119,650	$	265,721	$	13,614


	Warehouse				Consumer
	Lines of		Home		RPG		Credit				Automobile		Other
(continued)	Credit		Equity		Loans		Cards		Overdrafts		Loans		Consumer		Total

Allowance:
Ending Allowance balance:
Individually evaluated for impairment, excluding PCI loans	$	—	$	433	$	—	$	—	$	—	$	—	$	36	$	4,616
Collectively evaluated for impairment		1,464		3,225		4,992		490		675		526		735		27,995
PCI loans with post acquisition impairment		—		99		—		—		—		—		—		309
PCI loans without post acquisition impairment		—		—		—		—		—		—		—		—

Total ending Allowance:	$	1,464	$	3,757	$	4,992	$	490	$	675	$	526	$	771	$	32,920

Loans:
Impaired loans individually evaluated, excluding PCI loans	$	—	$	1,929	$	—	$	—	$	—	$	—	$	81	$	48,856
Loans collectively evaluated for impairment		585,439		339,163		32,252		13,414		803		52,579		19,662		3,751,648
PCI loans with post acquisition impairment		—		99		—		—		—		—		—		3,828
PCI loans without post acquisition impairment		—		94		—		—		—		—		1		6,446

Total ending loan balance	$	585,439	$	341,285	$	32,252	$	13,414	$	803	$	52,579	$	19,744	$	3,810,778



	Residential Real Estate								Commercial
			Owner						Real Estate -						Lease
	Owner		Occupied -		Nonowner		Commercial		Purchased		Construction &		Commercial &		Financing
December 31, 2015 (in thousands)	Occupied		Correspondent		Occupied		Real Estate		Whole Loans		Land Development		Industrial		Receivables

Allowance:
Ending Allowance balance:
Individually evaluated for impairment, excluding PCI loans	$	3,820	$	—	$	78	$	339	$	—	$	159	$	196	$	—
Collectively evaluated for impairment		4,471		623		878		6,806		36		1,144		1,137		89
PCI loans with post acquisition impairment		10		—		96		491		—		—		122		—
PCI loans without post acquisition impairment		—		—		—		—		—		—		—		—

Total ending Allowance:	$	8,301	$	623	$	1,052	$	7,636	$	36	$	1,303	$	1,455	$	89

Loans:
Impaired loans individually evaluated, excluding PCI loans	$	39,041	$	—	$	2,351	$	12,441	$	—	$	2,717	$	322	$	—
Loans collectively evaluated for impairment		1,042,334		249,344		113,158		802,528		35,674		63,750		228,151		8,905
PCI loans with post acquisition impairment		65		—		785		4,806		—		—		1,193		—
PCI loans without post acquisition impairment		494		—		—		5,112		—		33		55		—

Total ending loan balance	$	1,081,934	$	249,344	$	116,294	$	824,887	$	35,674	$	66,500	$	229,721	$	8,905


	Warehouse				Consumer
	Lines of		Home		RPG		Credit				Automobile		Other
(continued)	Credit		Equity		Loans		Cards		Overdrafts		Loans		Consumer		Total

Allowance:
Ending Allowance balance:
Individually evaluated for impairment, excluding PCI loans	$	—	$	100	$	—	$	—	$	—	$	—	$	16	$	4,708
Collectively evaluated for impairment		967		2,896		1,699		448		351		56		463		22,064
PCI loans with post acquisition impairment		—		—		—		—		—		—		—		719
PCI loans without post acquisition impairment		—		—		—		—		—		—		—		—

Total ending Allowance:	$	967	$	2,996	$	1,699	$	448	$	351	$	56	$	479	$	27,491

Loans:
Impaired loans individually evaluated, excluding PCI loans	$	—	$	2,316	$	—	$	—	$	—	$	—	$	86	$	59,274
Loans collectively evaluated for impairment		386,729		286,878		7,204		11,068		685		6,473		11,912		3,254,793
PCI loans with post acquisition impairment		—		—		—		—		—		—		—		6,849
PCI loans without post acquisition impairment		—		—		—		—		—		—		—		5,694

Total ending loan balance	$	386,729	$	289,194	$	7,204	$	11,068	$	685	$	6,473	$	11,998	$	3,326,610

Schedule of loans individually evaluated for impairment by class of loans


	As of						Twelve Months Ended
	December 31, 2016						December 31, 2016
											Cash Basis
	Unpaid						Average		Interest		Interest
	Principal		Recorded		Allowance		Recorded		Income		Income
(in thousands)	Balance		Investment		Allocated		Investment		Recognized		Recognized

Impaired loans with no related allowance recorded:
Residential real estate:
Owner occupied	$	13,727	$	12,629	$	—	$	13,219	$	140	$	—
Owner occupied - correspondent		—		—		—		—		—		—
Nonowner occupied		1,399		1,376		—		1,293		20		—
Commercial real estate		6,610		5,536		—		6,462		106		—
Commercial real estate - purchased whole loans		—		—		—		—		—		—
Construction & land development		476		476		—		476		20		—
Commercial & industrial		67		67		—		115		7		—
Lease financing receivables		—		—		—		—		—		—
Warehouse lines of credit		—		—		—		—		—		—
Home equity		1,358		1,287		—		1,674		15		—
Consumer:
RPG loans		—		—		—		—		—		—
Credit cards		—		—		—		—		—		—
Overdrafts		—		—		—		—		—		—
Automobile loans		—		—		—		—		—		—
Other consumer		45		45		—		70		—		—
Impaired loans with an allowance recorded:
Residential real estate:
Owner occupied		21,595		21,576		3,361		22,867		782		—
Owner occupied - correspondent		—		—		—		—		—		—
Nonowner occupied		491		493		73		799		24		—
Commercial real estate		7,397		7,397		577		8,592		292		—
Commercial real estate - purchased whole loans		—		—		—		—		—		—
Construction & land development		405		406		120		421		19		—
Commercial & industrial		619		619		227		621		1		—
Lease financing receivables		—		—		—		—		—		—
Warehouse lines of credit		—		—		—		—		—		—
Home equity		742		741		532		331		39		—
Consumer:
RPG loans		—		—		—		—		—		—
Credit cards		—		—		—		—		—		—
Overdrafts		—		—		—		—		—		—
Automobile loans		—		—		—		—		—		—
Other consumer		37		36		35		41		1		—
Total impaired loans	$	54,968	$	52,684	$	4,925	$	56,981	$	1,466	$	—


	As of						Twelve Months Ended
	December 31, 2015						December 31, 2015
											Cash Basis
	Unpaid						Average		Interest		Interest
	Principal		Recorded		Allowance		Recorded		Income		Income
(in thousands)	Balance		Investment		Allocated		Investment		Recognized		Recognized


Impaired loans with no related allowance recorded:
Residential real estate:
Owner occupied	$	14,287	$	13,256	$	—	$	10,907	$	100	$	—
Owner occupied - correspondent		—		—		—		—		—		—
Non owner occupied		1,978		1,928		—		2,234		31		—
Commercial real estate		7,406		6,743		—		9,653		170		—
Commercial real estate - purchased whole loans		—		—		—		—		—		—
Construction & land development		2,067		2,067		—		2,096		19		—
Commercial & industrial		18		18		—		1,682		3		—
Lease financing receivables		—		—		—		—		—		—
Warehouse lines of credit		—		—		—		—		—		—
Home equity		2,263		2,087		—		2,222		23		—
Consumer:
RPG loans		—		—		—		—		—		—
Credit cards		—		—		—		—		—		—
Overdrafts		—		—		—		—		—		—
Automobile loans		—		—		—		—		—		—
Other consumer		44		44		—		32		—		—
Impaired loans with an allowance recorded:
Residential real estate:
Owner occupied		25,896		25,850		3,830		28,917		885		—
Owner occupied - correspondent		—		—		—		—		—		—
Non owner occupied		1,231		1,208		174		2,004		60		—
Commercial real estate		10,546		10,504		830		11,378		469		—
Commercial real estate - purchased whole loans		—		—		—		—		—		—
Construction & land development		650		650		159		664		36		—
Commercial & industrial		1,497		1,497		318		2,351		81		—
Lease financing receivables		—		—		—		—		—		—
Warehouse lines of credit		—		—		—		—		—		—
Home equity		258		229		100		292		4		—
Consumer:
RPG loans		—		—		—		—		—		—
Credit cards		—		—		—		—		—		—
Overdrafts		—		—		—		—		—		—
Automobile loans		—		—		—		—		—		—
Other consumer		42		42		16		50		1		—
Total impaired loans	$	68,183	$	66,123	$	5,427	$	74,482	$	1,882	$	—




	As of						Twelve Months Ended
	December 31, 2014						December 31, 2014
											Cash Basis
	Unpaid						Average		Interest		Interest
	Principal		Recorded		Allowance		Recorded		Income		Income
(in thousands)	Balance		Investment		Allocated		Investment		Recognized		Recognized

Impaired loans with no related allowance recorded:
Residential real estate:
Owner occupied	$	6,598	$	6,196	$	—	$	6,745	$	351	$	—
Owner occupied - correspondent		—		—		—		—		—		—
Non owner occupied		2,368		2,215		—		1,758		130		—
Commercial real estate		17,282		16,248		—		16,809		912		—
Commercial real estate - purchased whole loans		—		—		—		—		—		—
Construction & land development		2,144		2,144		—		2,118		165		—
Commercial & industrial		3,943		3,943		—		4,047		252		—
Lease financing receivables		—		—		—		—		—		—
Warehouse lines of credit		—		—		—		—		—		—
Home equity		1,969		1,814		—		1,839		105		—
Consumer:
RPG loans		—		—		—		—		—		—
Credit cards		—		—		—		—		—		—
Overdrafts		—		—		—		—		—		—
Automobile loans		—		—		—		—		—		—
Other consumer		—		—		—		—		—		—

Impaired loans with an allowance recorded:
Residential real estate:
Owner occupied		36,361		35,794		3,301		35,121		1,350		—
Owner occupied - correspondent		—		—		—		—		—		—
Non owner occupied		2,755		2,727		165		4,685		172		—
Commercial real estate		12,653		12,614		1,278		16,722		672		—
Commercial real estate - purchased whole loans		—		—		—		—		—		—
Construction & land development		483		483		187		498		26		—
Commercial & industrial		1,534		1,534		367		1,495		115		—
Lease financing receivables		—		—		—		—		—		—
Warehouse lines of credit		—		—		—		—		—		—
Home equity		452		406		225		518		25		—
Consumer:
RPG loans		—		—		—		—		—		—
Credit cards		—		—		—		—		—		—
Overdrafts		—		—		—		—		—		—
Automobile loans		—		—		—		—		—		—
Other consumer		62		62		41		73		4		—
	$	88,604	$	86,180	$	5,564	$	92,428	$	4,279	$	—

Schedule of TDRs differentiated by loan type and accrual status


	Troubled Debt			Troubled Debt			Total
	Restructurings on			Restructurings on			Troubled Debt
	Nonaccrual Status			Accrual Status			Restructurings
	Number of	Recorded		Number of	Recorded		Number of	Recorded
December 31, 2016 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment
Residential real estate	79	$	7,199	198	$	21,554	277	$	28,753
Commercial real estate	6		2,430	17		8,835	23		11,265
Construction & land development	1		77	4		804	5		881
Commercial & industrial	1		154	2		533	3		687
Total troubled debt restructurings	87	$	9,860	221	$	31,726	308	$	41,586


	Troubled Debt			Troubled Debt			Total
	Restructurings on			Restructurings on			Troubled Debt
	Nonaccrual Status			Accrual Status			Restructurings
	Number of	Recorded		Number of	Recorded		Number of	Recorded
December 31, 2015 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment
Residential real estate	74	$	7,365	233	$	27,844	307	$	35,209
Commercial real estate	9		3,324	17		8,008	26		11,332
Construction & land development	2		1,589	6		1,128	8		2,717
Commercial & industrial	1		194	5		128	6		322
Total troubled debt restructurings	86	$	12,472	261	$	37,108	347	$	49,580

Schedule of categories of TDR loan modifications outstanding and respective performance under modified terms


	Troubled Debt			Troubled Debt
	Restructurings			Restructurings			Total
	Performing to			Not Performing to			Troubled Debt
	Modified Terms			Modified Terms			Restructurings
	Number of	Recorded		Number of	Recorded		Number of	Recorded
December 31, 2016 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment
Residential real estate loans (including home equity loans):
Interest only payments	2	$	155	1	$	493	3	$	648
Rate reduction	148		18,125	57		6,213	205		24,338
Principal deferral	7		616	7		306	14		922
Legal modification	17		806	38		2,039	55		2,845
Total residential TDRs	174		19,702	103		9,051	277		28,753

Commercial related and construction/land development loans:
Interest only payments	5		2,666	1		413	6		3,079
Rate reduction	8		4,769	2		228	10		4,997
Principal deferral	10		2,737	5		2,020	15		4,757
Total commercial TDRs	23		10,172	8		2,661	31		12,833
Total troubled debt restructurings	197	$	29,874	111	$	11,712	308	$	41,586


	Troubled Debt			Troubled Debt
	Restructurings			Restructurings			Total
	Performing to			Not Performing to			Troubled Debt
	Modified Terms			Modified Terms			Restructurings
	Number of	Recorded		Number of	Recorded		Number of	Recorded
December 31, 2015 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment
Residential real estate loans (including home equity loans):
Interest only payments	2	$	631	—	$	—	2	$	631
Rate reduction	183		24,734	46		5,650	229		30,384
Principal deferral	9		789	7		771	16		1,560
Legal modification	30		1,226	30		1,408	60		2,634
Total residential TDRs	224		27,380	83		7,829	307		35,209

Commercial related and construction/land development loans:
Interest only payments	6		1,517	1		481	7		1,998
Rate reduction	10		5,021	3		727	13		5,748
Principal deferral	12		2,726	8		3,899	20		6,625
Total commercial TDRs	28		9,264	12		5,107	40		14,371
Total troubled debt restructurings	252	$	36,644	95	$	12,936	347	$	49,580

Summary of categories of TDR loan modifications that occurred during the period


	Troubled Debt			Troubled Debt
	Restructurings			Restructurings			Total
	Performing to			Not Performing to			Troubled Debt
	Modified Terms			Modified Terms			Restructurings
	Number of	Recorded		Number of	Recorded		Number of	Recorded
December 31, 2016 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment
Residential real estate loans (including home equity loans):
Interest only payments	1	$	146	—	$	—	1	$	146
Rate reduction	6		566	3		149	9		715
Principal deferral	—		—	—		—	—		—
Legal modification	4		319	7		741	11		1,060
Total residential TDRs	11		1,031	10		890	21		1,921

Commercial related and construction/land development loans:
Interest only payments	2		1,718	—		—	2		1,718
Rate reduction	2		749	1		135	3		884
Principal deferral	1		465	1		1,429	2		1,894
Total commercial TDRs	5		2,932	2		1,564	7		4,496
Total troubled debt restructurings	16	$	3,963	12	$	2,454	28	$	6,417


	Troubled Debt			Troubled Debt
	Restructurings			Restructurings			Total
	Performing to			Not Performing to			Troubled Debt
	Modified Terms			Modified Terms			Restructurings
	Number of	Recorded		Number of	Recorded		Number of	Recorded
December 31, 2015 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment
Residential real estate loans (including home equity loans):
Interest only payments	1	$	617	—	$	—	1	$	617
Rate reduction	17		2,148	5		519	22		2,667
Principal deferral	—		—	2		43	2		43
Legal modification	3		153	4		162	7		315
Total residential TDRs	21		2,918	11		724	32		3,642

Commercial related and construction/land development loans:
Interest only payments	3		465	—		—	3		465
Rate reduction	1		815	—		—	1		815
Principal deferral	4		716	4		1,898	8		2,614
Total commercial TDRs	8		1,996	4		1,898	12		3,894
Total troubled debt restructurings	29	$	4,914	15	$	2,622	44	$	7,536

The tables above are inclusive of loans that were TDRs at the end of previous years and were re-modified, e.g., a maturity date extension during the current year.


	Performing to			Not Performing to			Troubled Debt
	Modified Terms			Modified Terms			Restructurings
	Number of	Recorded		Number of	Recorded		Number of	Recorded
December 31, 2014 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment

Residential real estate loans (including home equity loans):
Interest only payments	—	$	—	4	$	389	4	$	389
Rate reduction	21		2,274	11		1,773	32		4,047
Principal deferral	5		820	1		28	6		848
Legal modification	20		1,846	15		559	35		2,405
Total residential TDRs	46		4,940	31		2,749	77		7,689

Commercial related and construction/land development loans:
Interest only payments	4		1,185	2		385	6		1,570
Rate reduction	9		4,411	2		584	11		4,995
Principal deferral	7		1,102	2		1,726	9		2,828
Legal modification	—		—	—		—	—		—
Total commercial TDRs	20		6,698	6		2,695	26		9,393
Total troubled debt restructurings	66	$	11,638	37	$	5,444	103	$	17,082

The table above is inclusive of loans that were TDRs at the end of previous years and were re-modified, e.g., a maturity date extension during the current year.

Schedule of loans by class modified as troubled debt restructurings within the previous twelve months for which there was a payment default



	Years Ended December 31,
	2016			2015			2014
	Number of	Recorded		Number of	Recorded		Number of	Recorded
(dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment

Residential real estate:
Owner occupied	5	$	498	12	$	724	10	$	1,894
Owner occupied - correspondent	—		—	—		—	—		—
Nonowner occupied	—		—	—		—	6		580
Commercial real estate	—		—	2		1,704	7		3,429
Commercial real estate - purchased whole loans	—		—	—		—	—		—
Construction & land development	1		86	—		—	1		101
Commercial & industrial	—		—	1		194	1		207
Lease financing receivables	—		—	—		—	—		—
Warehouse lines of credit	—		—	—		—	—		—
Home equity	1		286	—		—	—		—
Consumer:
RPG loans	—		—	—		—	—		—
Credit cards	—		—	—		—	—		—
Overdrafts	—		—	—		—	—		—
Automobile loans	—		—	—		—	—		—
Other consumer	—		—	—		—	—		—

Total	7	$	870	15	$	2,622	25	$	6,211

Schedule of carrying amount of foreclosed properties held


December 31, (in thousands)	2016		2015

Residential real estate	$	1,391	$	478
Commercial real estate		—		442
Construction & land development		—		300

Total other real estate owned	$	1,391	$	1,220

Schedule of recorded investment in consumer mortgage loans secured by residential real estate properties


December 31, (in thousands)	2016		2015

Recorded investment in consumer residential real estate mortgage loans in the process of foreclosure	$	1,677	$	4,602

Schedule of easy advances


Year Ended December 31, (dollars in thousands)	2016

Easy Advances originated	$	123,230
Provision for Easy Advances		3,048
Easy Advances net charge-offs		3,048
Easy Advances net charge-offs to total Easy Advances originated		2.47	%

Cornerstone

Loans and allowance for loan and losses

Schedule of loans acquired


	May 17, 2016
(in thousands)	Contractual Receivable		Non-accretable Discount		Accretable Discount		Acquisition-Day Fair Value

Residential real estate:
Owner occupied	$	15,487	$	—	$	(393)	$	15,094
Nonowner occupied		11,196		—		(101)		11,095
Commercial real estate		106,089		—		(1,498)		104,591
Construction & land development		18,277		—		(502)		17,775
Commercial & industrial		11,462		—		(191)		11,271
Home equity		20,652		—		(350)		20,302
Consumer and other		2,347		—		(147)		2,200

Total loans - ASC 310-20		185,510		—		(3,182)		182,328

Residential real estate:
Owner occupied		2,963		(822)		(15)		2,126
Nonowner occupied		1,721		(320)		(167)		1,234
Commercial real estate		4,315		(617)		(197)		3,501
Construction & land development		175		—		—		175
Commercial & industrial		66		(1)		1		66
Home equity		382		(178)		(11)		193
Consumer and other		4		(3)		—		1

Total loans - ASC 310-30 - PCI loans		9,626		(1,941)		(389)		7,296

Total loans acquired	$	195,136	$	(1,941)	$	(3,571)	$	189,624