Loans (Tables)

6 Months Ended

Jun. 30, 2016

Loans

Schedule of loans

	June 30, 2016			December 31, 2015
	(Dollars in thousands)
Loans held-for-investment:
Commercial	$	610,385		$	556,522
Real estate:
Commercial		619,539			625,665
Land and construction		103,710			84,428
Home equity		78,332			76,833
Residential mortgages		32,852			—
Consumer		20,037			16,010
Loans		1,464,855			1,359,458
Deferred loan origination fees, net		(741	)		(742	)
Loans, net of deferred fees		1,464,114			1,358,716
Allowance for loan losses		(19,921	)		(18,926	)
Loans, net	$	1,444,193		$	1,339,790

Schedule of changes in allowance for loan losses

	Three Months Ended June 30, 2016
	Commercial			Real Estate		Consumer		Total
	(Dollars in thousands)
Balance, beginning of period	$	11,279		$	8,068	$	111	$	19,458
Charge-offs		(23	)		—		—		(23	)
Recoveries		129			6		—		135
Net recoveries		106			6		—		112
Provision for loan losses		143			203		5		351
Balance, end of period	$	11,528		$	8,277	$	116	$	19,921

	Three Months Ended June 30, 2015
	Commercial			Real Estate			Consumer			Total
	(Dollars in thousands)
Balance, beginning of period	$	10,856		$	7,554		$	144		$	18,554
Charge-offs		(9	)		—			—			(9	)
Recoveries		46			114			30			190
Net recoveries		37			114			30			181
Provision (credit) for loan losses		300			(218	)		(60	)		22
Balance, end of period	$	11,193		$	7,450		$	114		$	18,757

	Six Months Ended June 30, 2016
	Commercial			Real Estate			Consumer		Total
	(Dollars in thousands)
Balance, beginning of period	$	10,748		$	8,076		$	102	$	18,926
Charge-offs		(140	)		—			—		(140	)
Recoveries		161			222			—		383
Net recoveries		21			222			—		243
Provision (credit) for loan losses		759			(21	)		14		752
Balance, end of period	$	11,528		$	8,277		$	116	$	19,921

	Six Months Ended June 30, 2015
	Commercial			Real Estate			Consumer			Total
	(Dollars in thousands)
Balance, beginning of period	$	11,187		$	7,070		$	122		$	18,379
Charge-offs		(221	)		(2	)		—			(223	)
Recoveries		482			127			30			639
Net recoveries		261			125			30			416
Provision (credit) for loan losses		(255	)		255			(38	)		(38	)
Balance, end of period	$	11,193		$	7,450		$	114		$	18,757

Schedule of balance in allowance for loan losses and recorded investment in loans by portfolio segment, based on impairment method

	June 30, 2016
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	207	$	111	$	—	$	318
Collectively evaluated for impairment		11,321		8,166		116		19,603
Acquired with deterioriated credit quality		—		—		—		—
Total allowance balance	$	11,528	$	8,277	$	116	$	19,921
Loans:
Individually evaluated for impairment	$	440	$	3,813	$	3	$	4,256
Collectively evaluated for impairment		609,700		830,620		20,034		1,460,354
Acquired with deterioriated credit quality		245		—		—		245
Total loan balance	$	610,385	$	834,433	$	20,037	$	1,464,855

	December 31, 2015
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	174	$	112	$	—	$	286
Collectively evaluated for impairment		10,574		7,964		102		18,640
Acquired with deterioriated credit quality		—		—		—		—
Total allowance balance	$	10,748	$	8,076	$	102	$	18,926
Loans:
Individually evaluated for impairment	$	2,014	$	4,272	$	4	$	6,290
Collectively evaluated for impairment		554,271		782,654		16,006		1,352,931
Acquired with deterioriated credit quality		237		—		—		237
Total loan balance	$	556,522	$	786,926	$	16,010	$	1,359,458

Schedule of loans held-for-investment individually evaluated for impairment by class of loans

	June 30, 2016						December 31, 2015
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
	(Dollars in thousands)
With no related allowance recorded:
Commercial	$	285	$	285	$	—	$	745	$	745	$	—
Real estate:
Commercial		3,708		2,849		—		3,851		2,992		—
Land and construction		225		207		—		237		219		—
Home Equity		285		285		—		302		302		—
Consumer		3		3		—		4		4		—
Total with no related allowance recorded		4,506		3,629		—		5,139		4,262		—
With an allowance recorded:
Commercial		400		400		207		1,506		1,506		174
Real estate:
Home Equity		472		472		111		759		759		112
Total with an allowance recorded		872		872		318		2,265		2,265		286
Total	$	5,378	$	4,501	$	318	$	7,404	$	6,527	$	286

Schedule of average impaired loans with interest recognized and cash-basis interest earned on impaired loans

	Three Months Ended June 30, 2016
			Real Estate
	Commercial		Commercial		Land and Construction		Home Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	560	$	2,880	$	210	$	762	$	3	$	4,415
Interest income during impairment	$	—	$	—	$	—	$	—	$	—	$	—
Cash-basis interest earned	$	—	$	—	$	—	$	—	$	—	$	—

	Three Months Ended June 30, 2015
			Real Estate
	Commercial		Commercial		Land and Construction		Home Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	1,058	$	3,655	$	895	$	330	$	5	$	5,943
Interest income during impairment	$	—	$	—	$	—	$	—	$	—	$	—
Cash-basis interest earned	$	—	$	—	$	—	$	—	$	—	$	—

	Six Months Ended June 30, 2016
			Real Estate
	Commercial		Commercial		Land and Construction		Home Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	1,124	$	2,917	$	213	$	862	$	3	$	5,119
Interest income during impairment	$	—	$	—	$	—	$	—	$	—	$	—
Cash-basis interest earned	$	—	$	—	$	—	$	—	$	—	$	—

	Six Months Ended June 30, 2015
			Real Estate
	Commercial		Commercial		Land and Construction		Home Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	1,606	$	2,987	$	1,037	$	335	$	5	$	5,970
Interest income during impairment	$	—	$	—	$	—	$	—	$	—	$	—
Cash-basis interest earned	$	—	$	—	$	—	$	—	$	—	$	—

Schedule of nonperforming loans

	June 30,
					December 31, 2015
	2016		2015
	(Dollars in thousands)
Nonaccrual loans—held-for-investment	$	4,360	$	4,832	$	4,716
Restructured and loans over 90 days past due and still accruing		—		—		1,662
Total nonperforming loans		4,360		4,832		6,378
Other restructured loans		141		158		149
Impaired loans, excluding loans held-for-sale	$	4,501	$	4,990	$	6,527

Schedule of nonperforming loans by class

	June 30, 2016						December 31, 2015
	Nonaccrual		Restructured and Loans Over 90 Days Past Due and Still Accruing		Total		Nonaccrual		Restructured and Loans Over 90 Days Past Due and Still Accruing		Total
	(Dollars in thousands)
Commercial	$	544	$	—	$	544	$	724	$	1,378	$	2,102
Real estate:
Commercial		2,849		—		2,849		2,992		—		2,992
Land and construction		207		—		207		219		—		219
Home equity		757		—		757		777		284		1,061
Consumer		3		—		3		4		—		4
Total	$	4,360	$	—	$	4,360	$	4,716	$	1,662	$	6,378

Schedule of aging of past due loans by class of loans

	June 30, 2016
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans Not Past Due		Total
	(Dollars in thousands)
Commercial	$	5,187	$	1,519	$	40	$	6,746	$	603,639	$	610,385
Real estate:
Commercial		2,387		—		—		2,387		617,152		619,539
Land and construction		—		—		207		207		103,503		103,710
Home equity		284		472		1		757		77,575		78,332
Residential mortgages		—		—		—		—		32,852		32,852
Consumer		—		—		—		—		20,037		20,037
Total	$	7,858	$	1,991	$	248	$	10,097	$	1,454,758	$	1,464,855

	December 31, 2015
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans Not Past Due		Total
	(Dollars in thousands)
Commercial	$	3,285	$	262	$	1,704	$	5,251	$	551,271	$	556,522
Real estate:
Commercial		—		—		—		—		625,665		625,665
Land and construction		219		—		—		219		84,209		84,428
Home equity		—		—		284		284		76,549		76,833
Consumer		—		—		—		—		16,010		16,010
Total	$	3,504	$	262	$	1,988	$	5,754	$	1,353,704	$	1,359,458

Summary of loan portfolio by loan type and credit quality classification

	June 30, 2016						December 31, 2015
	Nonclassified		Classified		Total		Nonclassified		Classified		Total
	(Dollars in thousands)
Commercial	$	594,610	$	15,775	$	610,385	$	547,536	$	8,986	$	556,522
Real estate:
Commercial		614,270		5,269		619,539		617,865		7,800		625,665
Land and construction		103,503		207		103,710		84,209		219		84,428
Home equity		77,240		1,092		78,332		75,511		1,322		76,833
Residential mortgages		32,852		—		32,852		—		—		—
Consumer		19,882		155		20,037		15,705		305		16,010
Total	$	1,442,357	$	22,498	$	1,464,855	$	1,340,826	$	18,632	$	1,359,458