Loans (Tables)

9 Months Ended

Sep. 30, 2018

The following is a summary of loans:



(Dollars in thousands)	September 30, 2018				December 31, 2017
	Amount		%		Amount		%
Commercial:
Commercial real estate (1)		$1,240,350	35	%		$1,210,495	36	%
Commercial & industrial (2)	656,882		18		612,334		18
Total commercial	1,897,232		53		1,822,829		54
Residential Real Estate:
Residential real estate (3)	1,349,340		38		1,227,248		36
Consumer:
Home equity	282,331		8		292,467		9
Other (4)	27,300		1		31,527		1
Total consumer	309,631		9		323,994		10
Total loans (5)		$3,556,203	100	%		$3,374,071	100	%


(1)	Commercial real estate loans consist of commercial mortgages primarily secured by income producing property, as well as construction and development loans. Construction and development loans are made to businesses for land development or the on-site construction of industrial, commercial, or residential buildings.


(2)	Commercial & industrial consist of loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate.


(3)	Residential real estate loans consist of mortgage and homeowner construction loans secured by one- to four- family residential properties.


(4)	Other consumer loans consists of loans to individuals secured by general aviation aircraft and other personal installment loans.


(5)	Includes net unamortized loan origination costs of $4.8 million and $3.8 million, respectively, at September 30, 2018 and December 31, 2017 and net unamortized premiums on purchased loans of $746 thousand and $878 thousand, respectively, at September 30, 2018 and December 31, 2017.

Past Due Loans

The following tables present an age analysis of past due loans, segregated by class of loans:



(Dollars in thousands)	Days Past Due
September 30, 2018	30-59		60-89		Over 90		Total Past Due		Current		Total Loans
Commercial:
Commercial real estate		$—		$931		$—		$931		$1,239,419		$1,240,350
Commercial & industrial	—		20		122		142		656,740		656,882
Total commercial	—		951		122		1,073		1,896,159		1,897,232
Residential Real Estate:
Residential real estate	5,322		2,936		1,140		9,398		1,339,942		1,349,340
Consumer:
Home equity	1,854		534		551		2,939		279,392		282,331
Other	109		—		—		109		27,191		27,300
Total consumer	1,963		534		551		3,048		306,583		309,631
Total loans		$7,285		$4,421		$1,813		$13,519		$3,542,684		$3,556,203



(Dollars in thousands)	Days Past Due
December 31, 2017	30-59		60-89		Over 90		Total Past Due		Current		Total Loans
Commercial:
Commercial real estate		$6		$—		$4,954		$4,960		$1,205,535		$1,210,495
Commercial & industrial	3,793		2		281		4,076		608,258		612,334
Total commercial	3,799		2		5,235		9,036		1,813,793		1,822,829
Residential Real Estate:
Residential real estate	1,678		2,274		3,903		7,855		1,219,393		1,227,248
Consumer:
Home equity	2,798		75		268		3,141		289,326		292,467
Other	29		—		14		43		31,484		31,527
Total consumer	2,827		75		282		3,184		320,810		323,994
Total loans		$8,304		$2,351		$9,420		$20,075		$3,353,996		$3,374,071

Impaired Loans

The following is a summary of impaired loans:



(Dollars in thousands)	Recorded Investment (1)				Unpaid Principal				Related Allowance
	Sep 30, 2018		Dec 31, 2017		Sep 30, 2018		Dec 31, 2017		Sep 30, 2018		Dec 31, 2017
No Related Allowance Recorded
Commercial:
Commercial real estate		$—		$—		$—		$—		$—		$—
Commercial & industrial	4,825		4,986		4,877		5,081		—		—
Total commercial	4,825		4,986		4,877		5,081		—		—
Residential Real Estate:
Residential real estate	8,737		9,069		8,896		9,256		—		—
Consumer:
Home equity	1,582		557		1,583		557		—		—
Other	—		14		—		14		—		—
Total consumer	1,582		571		1,583		571		—		—
Subtotal	15,144		14,626		15,356		14,908		—		—
With Related Allowance Recorded
Commercial:
Commercial real estate		$—		$4,954		$—		$9,910		$—		$1,018
Commercial & industrial	54		191		75		212		—		1
Total commercial	54		5,145		75		10,122		—		1,019
Residential Real Estate:
Residential real estate	692		715		722		741		101		104
Consumer:
Home equity	52		—		51		—		8		—
Other	23		133		23		132		3		6
Total consumer	75		133		74		132		11		6
Subtotal	821		5,993		871		10,995		112		1,129
Total impaired loans		$15,965		$20,619		$16,227		$25,903		$112		$1,129
Total:
Commercial		$4,879		$10,131		$4,952		$15,203		$—		$1,019
Residential real estate	9,429		9,784		9,618		9,997		101		104
Consumer	1,657		704		1,657		703		11		6
Total impaired loans		$15,965		$20,619		$16,227		$25,903		$112		$1,129

(1)

The recorded investment in impaired loans consists of unpaid principal balance, net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs. For accruing impaired loans (troubled debt restructurings for which management has concluded that the collectibility of the loan is not in doubt), the recorded investment also includes accrued interest.

The following tables present the average recorded investment balance of impaired loans and interest income recognized on impaired loans segregated by loan class.




(Dollars in thousands)	Average Recorded Investment				Interest Income Recognized
Three months ended September 30,	2018		2017		2018		2017
Commercial:
Commercial real estate		$—		$8,041		$—		$21
Commercial & industrial	5,324		6,427		62		67
Total commercial	5,324		14,468		62		88
Residential Real Estate:
Residential real estate	9,265		15,107		96		102
Consumer:
Home equity	1,424		543		22		5
Other	25		142		—		2
Total consumer	1,449		685		22		7
Totals		$16,038		$30,260		$180		$197




(Dollars in thousands)	Average Recorded Investment				Interest Income Recognized
Nine months ended September 30,	2018		2017		2018		2017
Commercial:
Commercial real estate		$1,352		$9,117		$—		$73
Commercial & industrial	5,599		6,750		201		219
Total commercial	6,951		15,867		201		292
Residential Real Estate:
Residential real estate	9,709		15,750		293		374
Consumer:
Home equity	1,045		734		41		25
Other	85		142		5		8
Total consumer	1,130		876		46		33
Totals		$17,790		$32,493		$540		$699

Nonaccrual Loans

The following is a summary of nonaccrual loans, segregated by class of loans:



(Dollars in thousands)	Sep 30, 2018		Dec 31, 2017
Commercial:
Commercial real estate		$—		$4,954
Commercial & industrial	122		283
Total commercial	122		5,237
Residential Real Estate:
Residential real estate	9,063		9,414
Consumer:
Home equity	1,624		544
Other	—		16
Total consumer	1,624		560
Total nonaccrual loans		$10,809		$15,211
Accruing loans 90 days or more past due		$—		$—

Credit Quality Indicators Commercial

The following table presents the commercial loan portfolio, segregated by category of credit quality indicator:



(Dollars in thousands)	Pass				Special Mention				Classified
	Sep 30, 2018		Dec 31, 2017		Sep 30, 2018		Dec 31, 2017		Sep 30, 2018		Dec 31, 2017
Commercial:
Commercial real estate	1,235,579		1,205,381		1,065		—		3,706		5,114
Commercial & industrial	593,673		592,749		55,012		9,804		8,197		9,781
Total commercial		$1,829,252		$1,798,130		$56,077		$9,804		$11,903		$14,895

Credit Quality Indicators Residential & Consumer

The following table presents the residential and consumer loan portfolios, segregated by loan type and credit quality indicator:



(Dollars in thousands)	Current				Past Due
	Sep 30, 2018		Dec 31, 2017		Sep 30, 2018		Dec 31, 2017
Residential Real Estate:
Self-originated mortgages		$1,224,575		$1,091,291		$8,172		$6,413
Purchased mortgages	115,367		128,102		1,226		1,442
Total residential real estate		$1,339,942		$1,219,393		$9,398		$7,855
Consumer:
Home equity		$279,392		$289,326		$2,939		$3,141
Other	27,191		31,484		109		43
Total consumer		$306,583		$320,810		$3,048		$3,184