Loans (Tables)

12 Months Ended

Dec. 31, 2019

Loans

Schedule of loans

	December 31,		December 31,
	2019		2018
	(Dollars in thousands)
Loans held-for-investment:
Commercial	$	631,547	$	597,763
Real estate:
CRE		1,510,592		994,067
Land and construction		150,634		122,358
Home equity		175,252		109,112
Residential mortgages		46,256		50,979
Consumer		19,882		12,453
Loans		2,534,163		1,886,732
Deferred loan fees, net		(319)		(327)
Loans, net of deferred fees		2,533,844		1,886,405
Allowance for loan losses		(23,285)		(27,848)
Loans, net	$	2,510,559	$	1,858,557

Schedule of changes in allowance for loan losses

`	Year Ended December 31, 2019
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Beginning of period balance	$	17,061	$	10,671	$	116	$	27,848
Charge-offs		(6,609)		—		(14)		(6,623)
Recoveries		1,045		169		—		1,214
Net (charge-offs) recoveries		(5,564)		169		(14)		(5,409)
Provision (credit) for loan losses		(1,044)		1,910		(20)		846
End of period balance	$	10,453	$	12,750	$	82	$	23,285

	Year Ended December 31, 2018
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Beginning of period balance	$	10,608	$	8,950	$	100	$	19,658
Charge-offs		(2,002)		—		(24)		(2,026)
Recoveries		2,645		150		—		2,795
Net (charge-offs) recoveries		643		150		(24)		769
Provision for loan losses		5,810		1,571		40		7,421
End of period balance	$	17,061	$	10,671	$	116	$	27,848

	Year Ended December 31, 2017
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Beginning of period balance	$	10,656	$	8,327	$	106	$	19,089
Charge-offs		(2,239)		—		—		(2,239)
Recoveries		1,585		1,124		—		2,709
Net (charge-offs) recoveries		(654)		1,124		—		470
Provision (credit) for loan losses		606		(501)		(6)		99
End of period balance	$	10,608	$	8,950	$	100	$	19,658

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

	December 31, 2019
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	1,835	$	—	$	—	$	1,835
Collectively evaluated for impairment		8,618		12,750		82		21,450
Total allowance balance	$	10,453	$	12,750	$	82	$	23,285
Loans:
Individually evaluated for impairment	$	4,810	$	5,454	$	—	$	10,264
Collectively evaluated for impairment		626,737		1,877,280		19,882		2,523,899
Total loan balance	$	631,547	$	1,882,734	$	19,882	$	2,534,163

	December 31, 2018
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	6,944	$	—	$	—	$	6,944
Collectively evaluated for impairment		10,117		10,671		116		20,904
Total allowance balance	$	17,061	$	10,671	$	116	$	27,848
Loans:
Individually evaluated for impairment	$	9,495	$	5,645	$	—	$	15,140
Collectively evaluated for impairment		588,268		1,270,871		12,453		1,871,592
Total loan balance	$	597,763	$	1,276,516	$	12,453	$	1,886,732

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

	December 31, 2019						December 31, 2018
					Allowance						Allowance
	Unpaid				for Loan		Unpaid				for Loan
	Principal		Recorded		Losses		Principal		Recorded		Losses
	Balance		Investment		Allocated		Balance		Investment		Allocated
	(Dollars in thousands)
With no related allowance recorded:
Commercial	$	2,113	$	2,113	$	—	$	1,849	$	1,849	$	—
Real estate:
CRE		5,094		5,094		—		5,094		5,094		—
Home Equity		360		360		—		551		551		—
Total with no related allowance recorded		7,567		7,567		—		7,494		7,494		—
With an allowance recorded:
Commercial		2,697		2,697		1,835		7,646		7,646		6,944
Total with an allowance recorded		2,697		2,697		1,835		7,646		7,646		6,944
Total	$	10,264	$	10,264	$	1,835	$	15,140	$	15,140	$	6,944

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

	Year Ended December 31, 2019
			Real Estate
					Land and		Home
	Commercial		CRE		Construction		Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	8,048	$	6,433	$	—	$	440	$	—	$	14,921
Interest income during impairment	$	—	$	—	$	—	$	—	$	—	$	—
Cash-basis interest recognized	$	—	$	—	$	—	$	—	$	—	$	—

	Year Ended December 31, 2018
			Real Estate
					Land and		Home
	Commercial		CRE		Construction		Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	10,744	$	3,507	$	24	$	487	$	—	$	14,762
Interest income during impairment	$	—	$	—	$	—	$	—	$	—	$	—
Cash-basis interest recognized	$	—	$	—	$	—	$	—	$	—	$	—

Schedule of nonperforming loans

	2019		2018
	(Dollars in thousands)
Nonaccrual loans - held-for-investment	$	8,675	$	13,699
Restructured and loans over 90 days past due and still accruing		1,153		1,188
Total nonperforming loans		9,828		14,887
Other restructured loans		436		253
Total impaired loans	$	10,264	$	15,140

Schedule of nonperforming loans by class

	December 31, 2019						December 31, 2018
				Restructured						Restructured
				and Loans						and Loans
				over 90 Days						over 90 Days
				Past Due						Past Due
				and Still						and Still
	Nonaccrual			Accruing	Total		Nonaccrual			Accruing	Total
	(Dollars in thousands)
Commercial	$	3,444	$	1,153	$	4,597	$	8,279	$	963	$	9,242
Real estate:
CRE		5,094		—		5,094		5,094		—		5,094
Home equity		137		—		137		326		225		551
Total	$	8,675	$	1,153	$	9,828	$	13,699	$	1,188	$	14,887

Schedule of aging of past due loans by class of loans

The following table presents the aging of past due loans at year-end by class of loans:

	December 31, 2019
	30 - 59		60 - 89		90 Days or
	Days		Days		Greater		Total		Loans Not
	Past Due		Past Due		Past Due		Past Due		Past Due		Total
	(Dollars in thousands)
Commercial	$	4,770	$	2,097	$	3,217	$	10,084	$	621,463	$	631,547
Real estate:
CRE		—		—		5,094		5,094		1,505,498		1,510,592
Land and construction		—		—		—		—		150,634		150,634
Home equity		—		137		—		137		175,115		175,252
Residential mortgages		—		—		—		—		46,256		46,256
Consumer		—		—		—		—		19,882		19,882
Total	$	4,770	$	2,234	$	8,311	$	15,315	$	2,518,848	$	2,534,163

	December 31, 2018
	30 - 59		60 - 89		90 Days or
	Days		Days		Greater		Total		Loans Not
	Past Due		Past Due		Past Due		Past Due		Past Due		Total
	(Dollars in thousands)
Commercial	$	5,698	$	1,916	$	1,258	$	8,872	$	588,891	$	597,763
Real estate:
CRE		—		—		—		—		994,067		994,067
Land and construction		—		—		—		—		122,358		122,358
Home equity		—		—		—		—		109,112		109,112
Residential mortgages		—		—		—		—		50,979		50,979
Consumer		1		—		—		1		12,452		12,453
Total	$	5,699	$	1,916	$	1,258	$	8,873	$	1,877,859	$	1,886,732

Summary of loan portfolio by loan type and credit quality classification

	December 31, 2019						December 31, 2018
	Nonclassified		Classified		Total		Nonclassified		Classified		Total
	(Dollars in thousands)
Commercial	$	623,768		7,779	$	631,547	$	584,845	$	12,918	$	597,763
Real estate:
CRE		1,492,126		18,466		1,510,592		985,193		8,874		994,067
Land and construction		147,553		3,081		150,634		122,358		—		122,358
Home equity		171,999		3,253		175,252		107,495		1,617		109,112
Residential mortgages		46,256		—		46,256		50,979		—		50,979
Consumer		19,882		—		19,882		12,453		—		12,453
Total	$	2,501,584	$	32,579	$	2,534,163	$	1,863,323	$	23,409	$	1,886,732

Schedule of loans by class modified as troubled debt restructurings

	During the Year Ended
		December 31, 2019
				Pre-modification		Post-modification
		Number		Outstanding		Outstanding
		of		Recorded		Recorded
Troubled Debt Restructurings:		Contracts		Investment		Investment
	(Dollars in thousands)
Commercial		3	$	591	$	591
Total		3	$	591	$	591

	During the Year Ended
		December 31, 2018
				Pre-modification		Post-modification
		Number		Outstanding		Outstanding
		of		Recorded		Recorded
Troubled Debt Restructurings:		Contracts		Investment		Investment
	(Dollars in thousands)
Commercial		2	$	112	$	112
Equity		1		224		224
Total		3	$	336	$	336

Schedule of loans outstanding to related parties

	2019		2018
	(Dollars in thousands)
Beginning of year balance	$	—	$	531
Repayment on loans during the year		—		(531)
End of year balance	$	—	$	—