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Loans Receivable and Allowance for Loan Losses (Tables)
 3 Months Ended
Mar. 31, 2015
Receivables [Abstract]  
Summary of Loans Receivable
A summary of the Bank's loans receivable is as follows:
(in thousands)
March 31, 2015
 
December 31, 2014
Commercial and industrial
$
536,349

 
$
525,127

Commercial tax-exempt
67,176

 
71,151

Owner occupied real estate
311,259

 
332,070

Commercial construction and land development
137,063

 
138,064

Commercial real estate
607,400

 
594,276

Residential
116,143

 
110,951

Consumer
228,320

 
226,895

Gross loans receivable
2,003,710

 
1,998,534

Less: allowance for loan losses
25,755

 
24,998

Net loans receivable
$
1,977,955

 
$
1,973,536
Summary of Nonaccrual Loans, by Type
The following table summarizes nonaccrual loans by loan type:
(in thousands)
March 31, 2015
 
December 31, 2014
Nonaccrual loans:
 
 
 
   Commercial and industrial
$
12,375

 
$
11,634

   Commercial tax-exempt
—

 
—

   Owner occupied real estate
6,210

 
7,416

   Commercial construction and land development
3,241

 
3,228

   Commercial real estate
6,362

 
5,824

   Residential
4,971

 
4,987

   Consumer
1,573

 
1,877

Total nonaccrual loans
$
34,732

 
$
34,966
Age Analysis of Past Due Loan Receivables
The following tables present an aging analysis of 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
March 31, 2015
 
 
 
 
 
 
 
Commercial and industrial
$
527,272

$
2,897

$
1,212

$
4,968

$
9,077

$
536,349

$
—

Commercial tax-exempt
67,176

—

—

—

—

67,176

—

Owner occupied real estate
299,018

2,504

5,024

4,713

12,241

311,259

—

Commercial construction and
land development
136,468

236

328

31

595

137,063

—

Commercial real estate
600,420

3,463

1,160

2,357

6,980

607,400

—

Residential
106,939

6,410

151

2,643

9,204

116,143

—

Consumer
222,739

4,097

201

1,283

5,581

228,320

—

Total
$
1,960,032

$
19,607

$
8,076

$
15,995

$
43,678

$
2,003,710

$
—


 
 
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
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
Residen-tial
Consumer
Unallo-cated
Total
2015
 
 
 
 
 
 
 
 
 
Balance at January 1
$
11,714

$
55

$
1,931

$
4,242

$
4,707

$
796

$
931

$
622

$
24,998

Provision charged to operating expenses
530

(3
)
66

285

688

20

(57
)
(29
)
1,500

Recoveries of loans previously charged-off
54

—

—

2

7

1

12

—

76

Loans charged-off
(279
)
—

(53
)
—

(457
)
(14
)
(16
)
—

(819
)
Balance at March 31
$
12,019

$
52

$
1,944

$
4,529

$
4,945

$
803

$
870

$
593

$
25,755

 
(in thousands)
Comm. and industrial
Comm. tax-exempt
Owner occupied real estate
Comm. construction and land development
Comm. real estate
Residen-tial
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
(915
)
(4
)
(162
)
195

1,122

346

133

185

900

Recoveries of loans previously charged-off
1,005

—

243

100

73

—

23

—

1,444

Loans charged-off
(354
)
—

(25
)
(12
)
(716
)
(283
)
(130
)
—

(1,520
)
Balance at March 31
$
7,914

$
68

$
2,236

$
5,842

$
4,640

$
1,023

$
1,329

$
882

$
23,934


 
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. construction and land development
Comm. real estate
Residen-tial
Con-
sumer
Unallo-cated
Total
 
 
 
 
 
 
 
 
 
 
March 31, 2015
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
Individually evaluated
for impairment
$
4,365

$
—

$
1,355

$
—

$
—

$
—

$
—

$
—

$
5,720

Collectively evaluated
for impairment
7,654

52

589

4,529

4,945

803

870

593

20,035

Total ALL
$
12,019

$
52

$
1,944

$
4,529

$
4,945

$
803

$
870

$
593

$
25,755

Loans receivable:
 
 
 
 
 
 
 
 
 
Loans evaluated
  individually
$
17,722

$
—

$
6,249

$
3,670

$
10,504

$
5,639

$
2,229

$
—

$
46,013

Loans evaluated
  collectively
518,627

67,176

305,010

133,393

596,896

110,504

226,091

—

1,957,697

Total loans receivable
$
536,349

$
67,176

$
311,259

$
137,063

$
607,400

$
116,143

$
228,320

$
—

$
2,003,710


(in thousands)
Comm. and industrial
Comm. tax-exempt
Owner occupied real estate
Comm. construction and land development
Comm. real estate
Residen-tial
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
Schedule of Impaired Loan Receivables
The following table presents information regarding the Company's impaired loans. The recorded investment represents the contractual obligation less any charged off principal.
 
March 31, 2015
December 31, 2014
(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
$
7,601

$
8,343

$
—

$
8,766

$
9,437

$
—

   Commercial tax-exempt
—

—

—

—

—

—

   Owner occupied real estate
3,482

3,935

—

6,155

6,636

—

   Commercial construction and land
     development
3,670

3,670

—

3,810

3,810

—

   Commercial real estate
10,504

10,567

—

9,976

10,097

—

   Residential
5,639

6,953

—

5,657

7,011

—

   Consumer
2,229

2,384

—

2,433

2,686

—

Total impaired loans with no related
  allowance
33,125

35,852

—

36,797

39,677

—

Impaired loans with an allowance recorded:
 
 
 
 
 
 
   Commercial and industrial
10,121

10,121

4,365

8,216

8,216

4,401

   Owner occupied real estate
2,767

2,767

1,355

1,309

1,309

1,242

Total impaired loans with an
  allowance recorded
12,888

12,888

5,720

9,525

9,525

5,643

Total impaired loans:
 
 
 
 
 
 
   Commercial and industrial
17,722

18,464

4,365

16,982

17,653

4,401

   Commercial tax-exempt
—

—

—

—

—

—

   Owner occupied real estate
6,249

6,702

1,355

7,464

7,945

1,242

   Commercial construction and land
     development
3,670

3,670

—

3,810

3,810

—

   Commercial real estate
10,504

10,567

—

9,976

10,097

—

   Residential
5,639

6,953

—

5,657

7,011

—

   Consumer
2,229

2,384

—

2,433

2,686

—

Total impaired loans
$
46,013

$
48,740

$
5,720

$
46,322

$
49,202

$
5,643

The following table presents additional information regarding the Company's impaired loans for the three months ended:
 
Three Months Ended
 
March 31, 2015
March 31, 2014
(in thousands)
Average Recorded Investment
Interest Income Recognized
Average Recorded Investment
Interest Income Recognized
Impaired loans with no related allowance:
 
 
 
 
   Commercial and industrial
$
8,849

$
70

$
7,890

$
40

   Commercial tax-exempt
—

—

—

—

   Owner occupied real estate
5,459

—

4,786

10

   Commercial construction and
     land development
3,679

6

8,241

17

   Commercial real estate
10,662

39

10,770

48

   Residential
5,669

8

4,488

13

   Consumer
2,337

7

2,635

7

Total impaired loans with no
  related allowance
36,655

130

38,810

135

Impaired loans with an allowance recorded:
 
 
 
 
   Commercial and industrial
8,572

—

3,246

—

   Owner occupied real estate
1,787

—

1,686

—

   Commercial construction and
     land development
—

—

3,477

—

   Residential
—

—

3,079

—

   Consumer
—

—

476

—

Total impaired loans with an
  allowance recorded
10,359

—

11,964

—

Total impaired loans:
 
 
 
 
   Commercial and industrial
17,421

70

11,136

40

   Commercial tax-exempt
—

—

—

—

   Owner occupied real estate
7,246

—

6,472

10

   Commercial construction and
     land development
3,679

6

11,718

17

   Commercial real estate
10,662

39

10,770

48

   Residential
5,669

8

7,567

13

   Consumer
2,337

7

3,111

7

Total impaired loans
$
47,014

$
130

$
50,774

$
135
Credit Quality Indicators for Loans, by Loan Type
Credit quality indicators for commercial loans broken out by loan type at period end are presented in the following tables. There were no loans classified as doubtful for the periods ended March 31, 2015 or December 31, 2014.

 
March 31, 2015
(in thousands)
Pass
Special Mention
Substandard Accrual
Substandard Nonaccrual
Total
Commercial credit exposure:






   Commercial and industrial
$
488,040

$
17,454

$
18,480

$
12,375

$
536,349

   Commercial tax-exempt
67,176

—

—

—

67,176

   Owner occupied real estate
293,499

4,238

7,312

6,210

311,259

   Commercial construction and land development
133,494

187

141

3,241

137,063

   Commercial real estate
596,528

2,766

1,744

6,362

607,400

     Total
$
1,578,737

$
24,645

$
27,677

$
28,188

$
1,659,247


 
December 31, 2014
(in thousands)
Pass
Special Mention
Substandard Accrual
Substandard Nonaccrual
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


 
Consumer loan credit exposures are rated either performing or nonperforming as detailed below at March 31, 2015 and December 31, 2014:
 
March 31, 2015
(in thousands)
Performing
Nonperforming
Total
Consumer credit exposure:
 
 
 
   Residential
$
111,172

$
4,971

$
116,143

   Consumer
226,747

1,573

228,320

     Total
$
337,919

$
6,544

$
344,463


 
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
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 three month periods ended March 31, 2015 and 2014. 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:
Three Months Ended
 
March 31, 2015
March 31, 2014
(dollars in thousands)
Number of Contracts
 
Recorded Investment at Time of Restructure
Number of Contracts
 
Recorded Investment at Time of Restructure
Commercial and industrial:
 
 
 
 
 
 
   Forbearance agreement
1

 
$
3,307

—

 
$
—

   Change in amortization period
—

 
—

3

 
261

   Combination of concessions
—

 
—

1

 
30

Owner occupied real estate:
 
 
 
 
 
 
   Change in amortization period
—

 
—

1

 
128

Commercial construction and land development:
 
 
 
 
 
 
   Material extension of time
—

 
—

1

 
242

   Change in amortization period
—

 
—

1

 
214

Commercial real estate:
 
 
 
 
 
 
   Change in amortization period
—

 
—

14

 
1,893

Residential:
 
 
 
 
 
 
   Interest rate adjustment
—

 
—

1

 
143

Total
1

 
$
3,307

22

 
$
2,911
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 March 31, 2015 and 2014, respectively, and that subsequently defaulted during the three month periods ended March 31, 2015 and 2014, 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:
Three Months Ended
 
March 31, 2015
March 31, 2014
(dollars in thousands)
Number of Contracts
 
Recorded Investment
Number of Contracts
 
Recorded Investment
   Commercial and industrial
—

 
$
—

7

 
$
1,260

   Owner occupied real estate
2

 
731

3

 
914

   Commercial construction
     and land development
1

 
236

2

 
1,930

   Commercial real estate
3

 
2,667

—

 
—

   Residential
—

 
—

2

 
3,213

   Consumer
—

 
—

1

 
476

Total
6

 
$
3,634

15

 
$
7,793