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Loans (Tables)
 9 Months Ended
Sep. 30, 2017
Receivables [Abstract]  
Composition of Loans Held for Investment
The following table presents the composition of the loans held for investment portfolio at September 30, 2017 and December 31, 2016:
 
September 30, 2017
 
December 31, 2016
(In Thousands)
Outstanding
Amount
 
Percent of
Total Portfolio
 
Outstanding
Amount
 
Percent of
Total Portfolio
Commercial real estate - owner occupied
$
443,128

 
22.50
%
 
$
250,440

 
23.87
%
Commercial real estate - nonowner occupied
435,181

 
22.09

 
184,688

 
17.59

Real estate construction
104,193

 
5.29

 
91,822

 
8.75

Residential real estate
512,621

 
26.03

 
204,413

 
19.47

Commercial
449,450

 
22.82

 
311,486

 
29.67

Consumer
25,087

 
1.27

 
6,849

 
0.65

Total loans
$
1,969,660

 
100.00
%
 
$
1,049,698

 
100.00
%
Less allowance for loan losses
15,692

 
 

 
16,008

 
 
Net loans
$
1,953,968

 
 

 
$
1,033,690

 
 
Schedule of Changes in Accretable Yield for Purchased Impaired Loans
The following table presents the changes in the accretable yield for purchased impaired loans for three and nine month periods ended September 30, 2017:
 
September 30, 2017
(In Thousands)
Three Months Ended
Nine Months Ended
Accretable yield, beginning of period
$
466

$
—

Additions
—

557

Accretion
(146
)
(237
)
Reclassification from (to) nonaccretable difference
—

—

Other changes, net
—

—

Accretable yield, end of period
$
320

$
320
Non-Accrual Loans Past Due
Loans that were on non-accrual status are not included in any past due amounts.
 
September 30, 2017
(In Thousands)
30-59 Days Past Due
 
60-89 Days Past Due
 
90 Days Or Greater
 
Total Past Due
 
Non-accrual Loans
 
Current Loans
 
Total Loans
Commercial real estate -
owner occupied
$
892

 
$
—

 
$
—

 
$
892

 
$
—

 
$
442,236

 
$
443,128

Commercial real estate -
nonowner occupied
—

 
—

 
—

 
—

 
—

 
435,181

 
435,181

Real estate construction
—

 
—

 
—

 
—

 
26

 
104,167

 
104,193

Residential real estate
677

 
160

 
—

 
837

 
572

 
511,212

 
512,621

Commercial
397

 
39

 
73

 
509

 
5,236

 
443,705

 
449,450

Consumer
41

 
1

 
—

 
42

 
3

 
25,042

 
25,087

Total
$
2,007

 
$
200

 
$
73

 
$
2,280

 
$
5,837

 
$
1,961,543

 
$
1,969,660

 
December 31, 2016
(In Thousands)
30-59 Days Past Due
 
60-89 Days Past Due
 
Greater than 90 Days
 
Total Past Due
 
Non-accrual Loans
 
Current Loans
 
Total Loans
Commercial real estate -
owner occupied
$
—

 
$
—

 
$
—

 
—

 
$
—

 
$
250,440

 
$
250,440

Commercial real estate -
non-owner occupied
—

 
—

 
—

 
—

 
—

 
184,688

 
184,688

Real estate construction
—

 
—

 
—

 
—

 
940

 
90,882

 
91,822

Residential real estate
—

 
97

 
—

 
97

 
431

 
203,885

 
204,413

Commercial
438

 
—

 
—

 
438

 
5,551

 
305,497

 
311,486

Consumer
—

 
—

 
—

 
—

 
—

 
6,849

 
6,849

Total
$
438

 
$
97

 
$
—

 
$
535

 
$
6,922

 
$
1,042,241

 
$
1,049,698


The following table includes an aging analysis of the recorded investment of purchased impaired loans included in the table above:
 
September 30, 2017
(In Thousands)
30-59 Days Past Due
 
60-89 Days Past Due
 
90 Days Or Greater
 
Total Past Due
 
Non-accrual Loans
 
Current Loans
 
Total Loans
Commercial real estate -
owner occupied
$
653

 
$
—

 
$
—

 
$
653

 
$
—

 
$
442

 
$
1,095

Commercial real estate -
nonowner occupied
—

 
—

 
—

 
—

 
—

 
920

 
920

Real estate construction
—

 
—

 
—

 
—

 
—

 
—

 
—

Residential real estate
186

 
—

 
—

 
186

 
—

 
2,189

 
2,375

Commercial
—

 
—

 
—

 
—

 
—

 
94

 
94

Consumer
—

 
—

 
—

 
—

 
—

 
6

 
6

Total
$
839

 
$
—

 
$
—

 
$
839

 
$
—

 
$
3,651

 
$
4,490


Loans listed as non-performing are also placed on non-accrual status. The accrual of interest is discontinued at the time a loan is 90 days delinquent or when the credit deteriorates and there is doubt that the credit will be paid as agreed, unless the credit is well-secured and in process of collection. Once the loan is on non-accrual status, all accrued but unpaid interest is also charged-off, and all payments are used to reduce the principal balance. Once the principal balance is repaid in full, additional payments are taken into income. A loan may be returned to accrual status if the borrower shows renewed willingness and ability to repay under the terms of the loan agreement. The risk profile based upon payment activity is shown below.
 
September 30, 2017
 
December 31, 2016
(In Thousands)
Non-performing
 
Performing
 
Total Loans
 
Non-performing
 
Performing
 
Total Loans
Commercial real estate - owner occupied
$
—

 
$
443,128

 
$
443,128

 
$
—

 
$
250,440

 
$
250,440

Commercial real estate - nonowner occupied
—

 
435,181

 
435,181

 
—

 
184,688

 
184,688

Real estate construction
26

 
104,167

 
104,193

 
940

 
90,882

 
91,822

Residential real estate
572

 
512,049

 
512,621

 
431

 
203,982

 
204,413

Commercial
5,236

 
444,214

 
449,450

 
5,551

 
305,935

 
311,486

Consumer
3

 
25,084

 
25,087

 
—

 
6,849

 
6,849

Total
$
5,837

 
$
1,963,823

 
$
1,969,660

 
$
6,922

 
$
1,042,776

 
$
1,049,698
Summary of Loan Classifications by Class of Loan
The following tables present the recorded investment of loans that have been risk rated in accordance with the internal classification system:
September 30, 2017
(In Thousands)
Real Estate Construction
 
Commercial Real Estate
Owner Occupied
 
Commercial Real Estate
Non-Owner Occupied
 
Residential Real Estate
 
Commercial
 
Consumer
 
Total
Pass
$
98,263

 
$
438,924

 
$
434,911

 
$
509,478

 
$
433,861

 
$
25,077

 
$
1,940,514

Special Mention
5,419

 
1,452

 
284

 
647

 
2,520

 
—

 
10,322

Substandard
926

 
3,457

 
987

 
2,667

 
13,611

 
3

 
21,651

Doubtful
—

 
—

 
—

 
—

 
187

 
3

 
190

Loss
—

 
—

 
—

 
—

 
—

 
—

 
—

Unearned income
(415
)
 
(705
)
 
(1,001
)
 
(171
)
 
(729
)
 
4

 
(3,017
)
Ending Balance
$
104,193

 
$
443,128

 
$
435,181

 
$
512,621

 
$
449,450

 
$
25,087

 
$
1,969,660

December 31, 2016
(In Thousands)
Real Estate Construction
 
Commercial Real Estate
Owner Occupied
 
Commercial Real Estate
Non-Owner Occupied
 
Residential Real Estate
 
Commercial
 
Consumer
 
Total
Pass
$
91,296

 
$
247,001

 
$
185,020

 
$
202,762

 
$
287,978

 
$
6,848

 
$
1,020,905

Special Mention
—

 
1,213

 
300

 
932

 
4,544

 
—

 
6,989

Substandard
940

 
2,807

 
—

 
878

 
19,561

 
—

 
24,186

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

Loss
—

 
—

 
—

 
—

 
—

 
—

 
—

Unearned income
(414
)
 
(581
)
 
(632
)
 
(159
)
 
(597
)
 
1

 
(2,382
)
Ending Balance
$
91,822

 
$
250,440

 
$
184,688

 
$
204,413

 
$
311,486

 
$
6,849

 
$
1,049,698
Loans Identified as Impaired by Class of Loan
The table below shows the average recorded investment in impaired loans, excluding purchased impaired loans, by class of loan:
 
Average Recorded Investment
 
For the Three Months Ended
September 30,
 
For the Nine Months Ended
September 30,
(In Thousands)
2017
 
2016
 
2017
 
2016
Commercial real estate - owner occupied
$
67

 
$
67

 
$
151

 
$
23

Commercial real estate - nonowner occupied
334

 
—

 
779

 
2,423

Real estate construction
939

 
1,003

 
953

 
1,022

Residential real estate
952

 
23

 
1,189

 
45

Commercial
4,508

 
4,969

 
4,273

 
4,970

Consumer
2

 
—

 
1

 
—

Total
$
6,802

 
$
6,062

 
$
7,346

 
$
8,483

The table below shows the results of management’s analysis of impaired loans, excluding purchased impaired loans, as of September 30, 2017 and December 31, 2016:
 
September 30, 2017
(In Thousands)
Recorded Investment
 
Unpaid Principal Balance
 
Related Allowance
With no specific related allowance recorded:
 
 
 
 
 
Commercial real estate - owner occupied
$
—

 
$
—

 
$
—

Commercial real estate - nonowner occupied
—

 
—

 
—

Real estate construction
26

 
35

 
—

Residential real estate
35

 
36

 
—

Commercial
3,220

 
4,378

 
—

Consumer
3

 
3

 
—

Total with no specific related allowance
$
3,284

 
$
4,452

 
$
—

With a specific related allowance recorded:
 

 
 

 
 

Commercial real estate loans - owner occupied
$
—

 
$
—

 
$
—

Commercial real estate loans - nonowner occupied
—

 
—

 
—

Real estate construction
903

 
974

 
223

Residential real estate
537

 
549

 
—

Commercial
1,113

 
1,268

 
477

Consumer
—

 
—

 
—

Total with a specific related allowance
$
2,553

 
$
2,791

 
$
700

Total
$
5,837

 
$
7,243

 
$
700

 
 
December 31, 2016
(In Thousands)
Recorded Investment
 
Unpaid Principal Balance
 
Related Allowance
With no specific related allowance recorded:
 
 
 
 
 
Commercial real estate - owner occupied
$
—

 
$
—

 
$
—

Commercial real estate - nonowner occupied
—

 
—

 
—

Real estate construction
—

 
—

 
—

Residential real estate
431

 
431

 
—

Commercial
2,748

 
3,771

 
—

Consumer
—

 
—

 
—

Total with no specific related allowance
$
3,179

 
$
4,202

 
$
—

With a specific related allowance recorded:
 

 
 

 
 

Commercial real estate - owner occupied
$
—

 
$
—

 
$
—

Commercial real estate - nonowner occupied
—

 
—

 
—

Real estate construction
940

 
994

 
221

Residential real estate
—

 
—

 
—

Commercial
2,803

 
2,900

 
2,805

Consumer
—

 
—

 
—

Total with a specific related allowance
$
3,743

 
$
3,894

 
$
3,026

Total
$
6,922

 
$
8,096

 
$
3,026

The following table presents the acquired impaired loans receivable at the Acquisition Date (dollars in thousands):

Contractual principal and interest at acquisition
$
7,835

Nonaccretable difference
(3,427
)
Expected cash flows at acquisition
4,408

Accretable yield
(186
)
Fair value of purchased impaired loans
$
4,222