Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2017



Table 6.1: Changes in Allowance for Loan Losses
	September 30, 2017
	Construction and Development			Commercial Real Estate - Owner Occupied			Commercial Real Estate - Non-Owner Occupied			Residential Real Estate			Commercial and Industrial			Consumer			Total
	($ in thousands)
For the Three Months Ended:
Beginning Balance	$	2,974		$	2,483		$	5,543		$	1,773		$	1,284		$	17		$	14,074
Provision for loan losses	(167		)	(28		)	(4		)	66			513			(5		)	375
Charge-offs	—			—			—			(79		)	(246		)	—			(325		)
Recoveries	—			—			—			9			—			4			13
Ending Balance	$	2,807		$	2,455		$	5,539		$	1,769		$	1,551		$	16		$	14,137

For the Nine Months Ended:
Beginning Balance	$	2,954		$	2,129		$	4,834		$	1,768		$	1,869		$	28		$	13,582
Provision for loan losses	(140		)	313			705			154			1,312			(29		)	2,315
Charge-offs	(13		)	—			—			(249		)	(1,711		)	(15		)	(1,988		)
Recoveries	6			13			—			96			81			32			228
Ending Balance	$	2,807		$	2,455		$	5,539		$	1,769		$	1,551		$	16		$	14,137



	September 30, 2016
	Construction and Development			Commercial Real Estate - Owner Occupied			Commercial Real Estate - Non-Owner Occupied			Residential Real Estate			Commercial and Industrial			Consumer			Total
	($ in thousands)
For the Three Months Ended:
Beginning Balance	$	2,573		$	2,533		$	3,858		$	1,552		$	1,818		$	261		$	12,595
Provision for loan losses	94			(4		)	385			117			328			115			1,035
Charge-offs	—			—			(90		)	—			(612		)	—			(702		)
Recoveries	—			10			—			16			5			1			32
Ending Balance	$	2,667		$	2,539		$	4,153		$	1,685		$	1,539		$	377		$	12,960

For the Nine Months Ended:
Beginning Balance	$	2,321		$	2,576		$	3,549		$	1,532		$	2,172		$	139		$	12,289
Provision for loan losses	375			(13		)	1,240			152			650			236			2,640
Charge-offs	(31		)	(34		)	(636		)	(48		)	(1,302		)	(1		)	(2,052		)
Recoveries	2			10			—			49			19			3			83
Ending Balance	$	2,667		$	2,539		$	4,153		$	1,685		$	1,539		$	377		$	12,960



Table 6.2: Loans Held for Investment and Related Allowance for Loan Losses by Impairment Method and Loan Class
	As of September 30, 2017
	Construction and Development		Commercial Real Estate - Owner Occupied		Commercial Real Estate - Non-Owner Occupied		Residential Real Estate		Commercial and Industrial		Consumer		Total
	($ in thousands)
Ending Balance:
Evaluated collectively for impairment	$	269,981	$	256,846	$	588,042	$	311,515	$	178,923	$	4,301	$	1,609,608
Evaluated individually for impairment	—		3,117		15,105		3,908		3,907		—		26,037
	$	269,981	$	259,963	$	603,147	$	315,423	$	182,830	$	4,301	$	1,635,645

Allowance for Losses:
Evaluated collectively for impairment	$	2,807	$	2,452	$	5,539	$	1,609	$	1,054	$	16	$	13,477
Evaluated individually for impairment	—		3		—		160		497		—		660
	$	2,807	$	2,455	$	5,539	$	1,769	$	1,551	$	16	$	14,137



	December 31, 2016
	Construction and Development		Commercial Real Estate - Owner Occupied		Commercial Real Estate - Non-Owner Occupied		Residential Real Estate		Commercial and Industrial		Consumer		Total
	($ in thousands)
Ending Balance:
Evaluated collectively for impairment	$	288,193	$	228,131	$	557,846	$	283,013	$	163,157	$	4,653	$	1,524,993
Evaluated individually for impairment	—		3,283		—		4,237		2,015		15		9,550
	$	288,193	$	231,414	$	557,846	$	287,250	$	165,172	$	4,668	$	1,534,543

Allowance for Losses:
Evaluated collectively for impairment	$	2,954	$	2,000	$	4,834	$	1,533	$	952	$	15	$	12,288
Evaluated individually for impairment	—		129		—		235		917		13		1,294
	$	2,954	$	2,129	$	4,834	$	1,768	$	1,869	$	28	$	13,582



Table 6.3: Specific Allocation for Impaired Loans
	September 30, 2017						December 31, 2016
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Unpaid Principal Balance		Recorded Investment		Related Allowance
	($ in thousands)
With no related allowance:
Construction and development	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate - owner occupied	2,522		2,407		—		3,239		3,154		—
Commercial real estate - non-owner occupied	17,456		15,105		—		—		—		—
Residential real estate	1,822		1,609		—		1,972		1,845		—
Commercial and industrial	2,888		2,857		—		213		204		—
Consumer	—		—		—		—		—		—
Total with no related allowance	24,688		21,978		—		5,424		5,203		—
With an allowance recorded:
Construction and development	—		—		—		—		—		—
Commercial real estate - owner occupied	710		710		3		130		129		129
Commercial real estate - non-owner occupied	—		—		—		—		—		—
Residential real estate	2,324		2,299		160		2,409		2,392		235
Commercial and industrial	2,335		1,050		497		2,140		1,811		917
Consumer	—		—		—		16		15		13
Total with an allowance recorded	5,369		4,059		660		4,695		4,347		1,294
Total impaired loans	$	30,057	$	26,037	$	660	$	10,119	$	9,550	$	1,294



Table 6.3: Specific Allocation for Impaired Loans
	September 30, 2017						December 31, 2016
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Unpaid Principal Balance		Recorded Investment		Related Allowance
	($ in thousands)
With no related allowance:
Construction and development	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate - owner occupied	2,522		2,407		—		3,239		3,154		—
Commercial real estate - non-owner occupied	17,456		15,105		—		—		—		—
Residential real estate	1,822		1,609		—		1,972		1,845		—
Commercial and industrial	2,888		2,857		—		213		204		—
Consumer	—		—		—		—		—		—
Total with no related allowance	24,688		21,978		—		5,424		5,203		—
With an allowance recorded:
Construction and development	—		—		—		—		—		—
Commercial real estate - owner occupied	710		710		3		130		129		129
Commercial real estate - non-owner occupied	—		—		—		—		—		—
Residential real estate	2,324		2,299		160		2,409		2,392		235
Commercial and industrial	2,335		1,050		497		2,140		1,811		917
Consumer	—		—		—		16		15		13
Total with an allowance recorded	5,369		4,059		660		4,695		4,347		1,294
Total impaired loans	$	30,057	$	26,037	$	660	$	10,119	$	9,550	$	1,294



Table 6.4: Average Impaired Loan Balance
	For the Three Months Ended
	September 30, 2017				September 30, 2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	($ in thousands)
With no related allowance:
Construction and development	$	—	$	—	$	—	$	—
Commercial real estate- owner occupied	2,425		—		87		—
Commercial real estate- non-owner occupied	11,712		112		1,018		—
Residential real estate	1,427		2		2,833		28
Commercial and industrial	3,044		2		1,484		1
Consumer	—		—		—		—
Total with no related allowance	18,608		116		5,422		29
With an allowance recorded:
Construction and development	—		—		92		—
Commercial real estate- owner occupied	712		20		2,462		—
Commercial real estate- non-owner occupied	1,048		21		—		—
Residential real estate	2,312		29		1,629		10
Commercial and industrial	688		1		1,925		1
Consumer	—		—		364		—
Total with an allowance recorded	4,760		71		6,472		11
Total average impaired loans	$	23,368	$	187	$	11,894	$	40



	For the Nine Months Ended
	September 30, 2017				September 30, 2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	($ in thousands)
With no related allowance:
Construction and development	$	4	$	—	$	30	$	—
Commercial real estate - owner occupied	2,445		—		931		—
Commercial real estate - non-owner occupied	5,729		186		3,047		—
Residential real estate	1,572		7		3,817		87
Commercial and industrial	1,520		5		4,107		11
Consumer	7		—		—		—
Total with no related allowance	11,277		198		11,932		98
With an allowance recorded:
Construction and development	$	—	$	—	$	92	$	—
Commercial real estate - owner occupied	713		59		2,476		—
Commercial real estate - non-owner occupied	633		31		—		—
Residential real estate	2,345		88		2,094		42
Commercial and industrial	1,178		4		2,024		4
Consumer	—		—		365		—
Total with an allowance recorded	4,869		182		7,051		46
Total average impaired loans	$	16,146	$	380	$	18,983	$	144

WashingtonFirst Bankshares, Inc. 10-Q