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Loans Receivable and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2014
Receivables [Abstract]  
Summary of Loans Receivable
A summary of the Bank's loans receivable is as follows: 
 
December 31,
(in thousands)
2014
 
2013
Commercial and industrial
$
525,127

 
$
447,144

Commercial tax-exempt
71,151

 
81,734

Owner occupied real estate
332,070

 
302,417

Commercial construction and land development
138,064

 
133,176

Commercial real estate
594,276

 
473,188

Residential
110,951

 
97,766

Consumer
226,895

 
215,447

 
1,998,534

 
1,750,872

Less: allowance for loan losses
24,998

 
23,110

Net loans receivable
$
1,973,536

 
$
1,727,762
Summary of Nonaccrual Loans, by Type
The following table summarizes nonaccrual loans by loan type:
 
December 31,
(in thousands)
2014
 
2013
Nonaccrual loans:
 
 
 
   Commercial and industrial
$
11,634

 
$
10,217

   Commercial tax-exempt
—

 
—

   Owner occupied real estate
7,416

 
4,838

   Commercial construction and land development
3,228

 
8,587

   Commercial real estate
5,824

 
6,705

   Residential
4,987

 
7,039

   Consumer
1,877

 
2,577

Total nonaccrual loans
$
34,966

 
$
39,963
Age Analysis of Past Due Loan Receivables
The following tables detail the age analysis of past due loans receivable:
 
 
Past Due Loans
 
 
Recorded Investment in Loans 90 Days and Greater and Still Accruing
(in thousands)
Current
30-59 Days Past Due
60-89 Days Past Due
90 Days Past Due and Greater
Total Past Due
Total Loans Receivable
December 31, 2014
 
 
 
 
 
 
 
Commercial and industrial
$
514,428

$
1,574

$
3,398

$
5,727

$
10,699

$
525,127

$
—

Commercial tax-exempt
71,151

—

—

—

—

71,151

—

Owner occupied real estate
325,681

606

44

5,739

6,389

332,070

445

Commercial construction and
land development
137,263

611

190

—

801

138,064

—

Commercial real estate
591,383

1,104

175

1,614

2,893

594,276

—

Residential
101,233

5,067

1,900

2,751

9,718

110,951

—

Consumer
222,767

2,650

437

1,041

4,128

226,895

—

Total
$
1,963,906

$
11,612

$
6,144

$
16,872

$
34,628

$
1,998,534

$
445


 
 
Past Due Loans
 
 
Recorded Investment in Loans 90 Days and Greater and Still Accruing
(in thousands)
Current
30-59 Days Past Due
60-89 Days Past Due
90 Days Past Due and Greater
Total Past Due
Total Loans Receivable
December 31, 2013
 
 
 
 
 
 
 
Commercial and industrial
$
438,522

$
1,830

$
1,041

$
5,751

$
8,622

$
447,144

$
17

Commercial tax-exempt
81,734

—

—

—

—

81,734

—

Owner occupied real estate
295,278

2,618

1,674

2,847

7,139

302,417

—

Commercial construction and
land development
124,240

3,355

342

5,239

8,936

133,176

—

Commercial real estate
465,765

2,142

444

4,837

7,423

473,188

235

Residential
85,352

4,194

6,304

1,916

12,414

97,766

117

Consumer
210,906

2,095

1,335

1,111

4,541

215,447

—

Total
$
1,701,797

$
16,234

$
11,140

$
21,701

$
49,075

$
1,750,872

$
369
Summary of Allowances on Loan Receivables, by Class
The following tables summarize the transactions in the ALL: 
(in thousands)
Comm. and industrial
Comm. tax-exempt
Owner occupied real estate
Comm. construction and land development
Comm. real estate
Resi-dential
Consumer
Unallo-cated
Total
2014
 
 
 
 
 
 
 
 
 
Balance at January 1
$
8,178

$
72

$
2,180

$
5,559

$
4,161

$
960

$
1,303

$
697

$
23,110

Provision charged to operating expenses
3,822

(17
)
201

(570
)
1,448

1,282

659

(75
)
6,750

Recoveries of loans previously charged-off
1,468

—

325

546

203

20

248

—

2,810

Loans charged-off
(1,754
)
—

(775
)
(1,293
)
(1,105
)
(1,466
)
(1,279
)
—

(7,672
)
Balance at December 31
$
11,714

$
55

$
1,931

$
4,242

$
4,707

$
796

$
931

$
622

$
24,998


(in thousands)
Comm. and industrial
Comm. tax-exempt
Owner occupied real estate
Comm. construction and land development
Comm. real estate
Resi-dential
Consumer
Unallo-cated
Total
2013
 
 
 
 
 
 
 
 
 
Balance at January 1
$
9,959

$
83

$
2,129

$
7,222

$
3,983

$
324

$
793

$
789

$
25,282

Provision charged to operating expenses
524

(11
)
343

691

2,951

958

1,511

(92
)
6,875

Recoveries of loans previously charged-off
1,122

—

3

490

—

10

76

—

1,701

Loans charged-off
(3,427
)
—

(295
)
(2,844
)
(2,773
)
(332
)
(1,077
)
—

(10,748
)
Balance at December 31
$
8,178

$
72

$
2,180

$
5,559

$
4,161

$
960

$
1,303

$
697

$
23,110


(in thousands)
Comm. and industrial
Comm. tax-exempt
Owner occupied real estate
Comm. construction and land development
Comm. real estate
Resi-dential
Consumer
Unallo-cated
Total
2012
 
 
 
 
 
 
 
 
 
Balance at January 1
$
8,400

$
79

$
729

$
7,840

$
3,241

$
435

$
831

$
65

$
21,620

Provision charged to operating expenses
3,634

4

2,165

243

2,498

193

639

724

10,100

Recoveries of loans previously charged-off
227

—

7

517

97

4

67

—

919

Loans charged-off
(2,302
)
—

(772
)
(1,378
)
(1,853
)
(308
)
(744
)
—

(7,357
)
Balance at December 31
$
9,959

$
83

$
2,129

$
7,222

$
3,983

$
324

$
793

$
789

$
25,282

A summary of the ALL and balance of loans receivable by loan class and by impairment method is presented in the tables that follow.

(in thousands)
Comm. and industrial
Comm. tax-exempt
Owner occupied real estate
Comm. constr.
and land devel-opment
Comm. real estate
Resi-dential
Con-sumer
Unallo-cated
Total
 
 
 
 
 
 
 
 
 
 
December 31, 2014
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
Individually evaluated
for impairment
$
4,401

$
—

$
1,242

$
—

$
—

$
—

$
—

$
—

$
5,643

Collectively evaluated
for impairment
7,313

55

689

4,242

4,707

796

931

622

19,355

Total ALL
$
11,714

$
55

$
1,931

$
4,242

$
4,707

$
796

$
931

$
622

$
24,998

Loans receivable:
 
 
 
 
 
 
 
 
 
Loans evaluated
  individually
$
16,982

$
—

$
7,464

$
3,810

$
9,976

$
5,657

$
2,433

$
—

$
46,322

Loans evaluated
  collectively
508,145

71,151

324,606

134,254

584,300

105,294

224,462

—

1,952,212

Total loans receivable
$
525,127

$
71,151

$
332,070

$
138,064

$
594,276

$
110,951

$
226,895

$
—

$
1,998,534


(in thousands)
Comm. and industrial
Comm. tax-exempt
Owner occupied real estate
Comm. constr. and land devel-opment
Comm. real estate
Resi-dential
Con-sumer
Unallo-cated
Total
December 31, 2013
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
Individually evaluated
for impairment
$
1,559

$
—

$
1,366

$
1,660

$
—

$
524

$
476

$
—

$
5,585

Collectively evaluated
for impairment
6,619

72

814

3,899

4,161

436

827

697

17,525

Total ALL
$
8,178

$
72

$
2,180

$
5,559

$
4,161

$
960

$
1,303

$
697

$
23,110

Loans receivable:
 
 
 
 
 
 
 
 
 
Loans evaluated
  individually
$
13,055

$
—

$
5,822

$
11,669

$
10,953

$
7,979

$
3,121

$
—

$
52,599

Loans evaluated
  collectively
434,089

81,734

296,595

121,507

462,235

89,787

212,326

—

1,698,273

Total loans receivable
$
447,144

$
81,734

$
302,417

$
133,176

$
473,188

$
97,766

$
215,447

$
—

$
1,750,872
Schedule of Impaired Loan Receivables
The following table presents additional information regarding the Company's impaired loans for the twelve months ended:
 
December 31, 2014
December 31, 2013
December 31, 2012
(in thousands)
Average Recorded Investment
Interest Income Recognized
Average Recorded Investment
Interest Income Recognized
Average Recorded Investment
Interest Income Recognized
Impaired loans with no related allowance:
 
 
 
 
 
   Commercial and industrial
$
8,377

$
277

$
9,461

$
164

$
11,567

$
171

   Commercial tax-exempt
—

—

—

—

—

—

   Owner occupied real estate
4,798

10

3,087

3

3,846

150

   Commercial construction and
     land development
4,890

48

7,122

172

10,319

510

   Commercial real estate
10,061

168

15,267

366

12,434

319

   Residential
4,280

45

5,020

64

3,994

43

   Consumer
2,613

29

3,024

30

2,539

18

Total impaired loans with no
  related allowance
35,019

577

42,981

799

44,699

1,211

Impaired loans with an allowance recorded:
 
 
 
 
 
   Commercial and industrial
3,449

—

4,563

—

5,258

—

   Owner occupied real estate
1,778

—

1,407

—

1,571

—

   Commercial construction and
     land development
3,192

—

7,926

—

11,375

—

   Commercial real estate
—

—

—

—

655

—

   Residential
2,816

—

1,805

—

—

—

   Consumer
429

—

280

—

—

—

Total impaired loans with an
  allowance recorded
11,664

—

15,981

—

18,859

—

Total impaired loans:
 
 
 
 
 
 
   Commercial and industrial
11,826

277

14,024

164

16,825

171

   Commercial tax-exempt
—

—

—

—

—

—

   Owner occupied real estate
6,576

10

4,494

3

5,417

150

   Commercial construction and
     land development
8,082

48

15,048

172

21,694

510

   Commercial real estate
10,061

168

15,267

366

13,089

319

   Residential
7,096

45

6,825

64

3,994

43

   Consumer
3,042

29

3,304

30

2,539

18

Total impaired loans
$
46,683

$
577

$
58,962

$
799

$
63,558

$
1,211

The following table presents information regarding the Company's impaired loans. The recorded investment represents the contractual obligation less any charged off principal.

 
December 31, 2014
December 31, 2013
(in thousands)
Recorded Investment
Unpaid Principal Balance
Related Allowance
Recorded Investment
Unpaid Principal Balance
Related Allowance
Impaired loans with no related allowance:
 
 
 
 
 
 
   Commercial and industrial
$
8,766

$
9,437

$
—

$
9,838

$
12,587

$
—

   Commercial tax-exempt
—

—

—

—

—

—

   Owner occupied real estate
6,155

6,636

—

4,456

4,664

—

   Commercial construction and land
development
3,810

3,810

—

8,514

9,047

—

   Commercial real estate
9,976

10,097

—

10,953

12,795

—

   Residential
5,657

7,011

—

4,901

5,366

—

   Consumer
2,433

2,686

—

2,645

2,868

—

Total impaired loans with no related
allowance
36,797

39,677

—

41,307

47,327

—

Impaired loans with an allowance recorded:
 
 
 
 
 
 
   Commercial and industrial
8,216

8,216

4,401

3,217

3,217

1,559

   Owner occupied real estate
1,309

1,309

1,242

1,366

1,366

1,366

   Commercial construction and land
development
—

—

—

3,155

3,155

1,660

   Commercial real estate
—

—

—

—

—

—

   Residential
—

—

—

3,078

3,078

524

   Consumer
—

—

—

476

476

476

Total impaired loans with an
allowance recorded
9,525

9,525

5,643

11,292

11,292

5,585

Total impaired loans:
 
 
 
 
 
 
   Commercial and industrial
16,982

17,653

4,401

13,055

15,804

1,559

   Commercial tax-exempt
—

—

—

—

—

—

   Owner occupied real estate
7,464

7,945

1,242

5,822

6,030

1,366

   Commercial construction and land
development
3,810

3,810

—

11,669

12,202

1,660

   Commercial real estate
9,976

10,097

—

10,953

12,795

—

   Residential
5,657

7,011

—

7,979

8,444

524

   Consumer
2,433

2,686

—

3,121

3,344

476

Total impaired loans
$
46,322

$
49,202

$
5,643

$
52,599

$
58,619

$
5,585
Credit Quality Indicators for Loans, by Loan Type
Credit quality indicators for commercial loans broken out by loan type at year end are presented in the following tables. There were no loans classified as doubtful for the years ended December 31, 2014 or December 31, 2013.

 
December 31, 2014
(in thousands)
Pass
Special Mention
Substandard Accrual
Substandard Nonaccrual
Doubtful
Total
Commercial credit exposure:
 
 
 
 
 
 
   Commercial and industrial
$
473,984

$
20,785

$
18,724

$
11,634

$
—

$
525,127

   Commercial tax-exempt
71,151

—

—

—

—

71,151

   Owner occupied real estate
311,668

4,268

8,718

7,416

—

332,070

   Commercial construction and land development
133,033

190

1,613

3,228

—

138,064

   Commercial real estate
584,239

1,584

2,629

5,824

—

594,276

     Total
$
1,574,075

$
26,827

$
31,684

$
28,102

$
—

$
1,660,688

 
 
December 31, 2013
(in thousands)
Pass
Special Mention
Substandard Accrual
Substandard Nonaccrual
Doubtful
Total
Commercial credit exposure:
 
 
 
 
 
 
   Commercial and industrial
$
410,530

$
8,064

$
18,333

$
10,217

$
—

$
447,144

   Commercial tax-exempt
81,734

—

—

—

—

81,734

   Owner occupied real estate
285,416

3,624

8,539

4,838

—

302,417

   Commercial construction and land development
120,687

—

3,902

8,587

—

133,176

   Commercial real estate
464,408

318

1,757

6,705

—

473,188

     Total
$
1,362,775

$
12,006

$
32,531

$
30,347

$
—

$
1,437,659



Consumer credit exposures are rated as performing or nonperforming as detailed below at December 31, 2014 and 2013:
 
December 31, 2014
(in thousands)
Performing
Nonperforming
Total
Consumer credit exposure:
 
 
 
   Residential
$
105,964

$
4,987

$
110,951

   Consumer
225,018

1,877

226,895

     Total
$
330,982

$
6,864

$
337,846


 
December 31, 2013
(in thousands)
Performing
Nonperforming
Total
Consumer credit exposure:
 
 
 
   Residential
$
90,727

$
7,039

$
97,766

   Consumer
212,870

2,577

215,447

     Total
$
303,597

$
9,616

$
313,213
Troubled Debt Restructurings on Loan Receivables, by Concession Type
The following table presents the recorded investment at the time of restructure of new TDRs and their concession, modified during the twelve month periods ended December 31, 2014, 2013 and 2012. The recorded investment at the time of restructure was the same pre-modification and post-modification, therefore there was no financial effect of the modification on the recorded investment. The loans included are considered TDRs as a result of the Bank implementing one or more of the following concessions: granting a material extension of time, entering into a forbearance agreement, adjusting the interest rate, accepting interest only payments for an extended period of time, a change in the amortization period or a combination of any of these concessions.
New TDRs with Concession Type:
Twelve Months Ended
 
December 31, 2014
December 31, 2013
December 31, 2012
(dollars in thousands)
Number of Contracts
Recorded Investment at Time of Restructure
Number of Contracts
Recorded Investment at Time of Restructure
Number of Contracts
Recorded Investment at Time of Restructure
Commercial and industrial:
 
 
 
 
 
 
   Material extension of time
—

$
—

—

$
—

1

$
1,262

   Forbearance agreement
5

1,758

—

—

—

—

   Interest rate adjustment
—

—

—

—

1

3,404

   Change in amortization period
3

261

7

1,079

—

—

   Combination of concessions
1

30

3

749

2

3,231

Owner occupied real estate:
 
 
 
 
 
 
   Material extension of time
—

—

2

738

—

—

   Forbearance agreement
1

330

1

193

—

—

   Accepting interest only for a period of time
3

1,601

—

—

—

—

   Change in amortization period
1

128

—

—

—

—

   Combination of concessions
—

—

—

—

1

1,451

Commercial construction and land development:
 
 
 
 
 
 
   Material extension of time
2

276

4

2,738

5

3,396

   Forbearance agreement
3

2,185

—

—

—

—

   Change in amortization period
1

214

—

—

—

—

   Combination of concessions
1

3,284

—

—

1

3,546

Commercial real estate:
 
 
 
 
 
 
   Material extension of time
—

—

—

—

1

68

   Forbearance agreement
1

2,292

—

—

—

—

   Change in amortization period
14

1,893

—

—

—

—

   Combination of concessions
1

3,275

4

6,220

1

3,275

Residential:
 
 
 
 
 
 
   Material extension of time
—

—

2

570

2

329

   Forbearance agreement
—

—

1

3,096

—

—

   Interest rate adjustment
1

143

—

—

—

—

   Change in amortization period
—

—

1

346

—

—

   Combination of concessions
—

—

1

134

1

195

Consumer:
 
 
 
 
 
 
   Material extension of time
—

—

1

35

4

426

   Forbearance agreement
1

182

1

480

—

—

   Combination of concessions
—

—

—

—

2

182

Total
39

$
17,852

28

$
16,378

22

$
20,765
Loans Receivable Modified as Troubled Debt Restructurings, Previous 12 Months, Subsequently Defaulted
The following table represents loans receivable modified as TDRs within the 12 months previous to December 31, 2014, 2013 and 2012, respectively, and that subsequently defaulted during the 12 month periods ended December 31, 2014, 2013 and 2012, respectively. The Bank's policy is to consider a loan past due and in default if payment is not received on or before the due date.

TDRs That Subsequently Payment Defaulted:
Twelve Months Ended
 
December 31, 2014
December 31, 2013
December 31, 2012
(dollars in thousands)
Number of Contracts
Recorded Investment
Number of Contracts
Recorded Investment
Number of Contracts
Recorded Investment
   Commercial and industrial
7

$
1,288

8

$
1,372

3

$
3,901

   Owner occupied real estate
4

1,792

3

926

—

—

   Commercial construction
     and land development
4

2,376

2

2,288

6

6,169

   Commercial real estate
3

521

1

3,275

1

66

   Residential
4

3,811

2

3,338

2

258

   Consumer
1

476

2

553

4

308

Total
23

$
10,264

18

$
11,752

16

$
10,702