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Loans (Tables)
 12 Months Ended
Dec. 31, 2017
Loans and Leases Receivable Disclosure [Abstract]  
Summary Of Loans, Net Of Unearned Fees
Loans are summarized as follows:
Dollars in thousands
 
2017
 
2016
Commercial
 
$
189,981

 
$
119,088

Commercial real estate
 
 

 
 

Owner-occupied
 
250,202

 
203,047

Non-owner occupied
 
484,902

 
381,921

Construction and development
 
 

 
 

Land and land development
 
67,219

 
72,042

Construction
 
33,412

 
16,584

Residential real estate
 
 

 
 

Non-jumbo
 
354,101

 
265,641

Jumbo
 
62,267

 
65,628

Home equity
 
84,028

 
74,596

Mortgage warehouse lines
 
30,757

 
85,966

Consumer
 
36,202

 
25,534

Other
 
13,238

 
9,489

Total loans, net of unearned fees
 
1,606,309

 
1,319,536

Less allowance for loan losses
 
12,565

 
11,674

Loans, net
 
$
1,593,744

 
$
1,307,862
Schedule Of Acquired Loans
The outstanding balance and the recorded investment of acquired loans included in the consolidated balance sheet at December 31, 2017 and 2016 are as follows:
 
 
Acquired Loans
 
 
2017
 
2016
Dollars in thousands
 
Purchased Credit Impaired
 
Purchased Performing
 
Total
 
Purchased Credit Impaired
 
Purchased Performing
 
Total
Outstanding balance
 
$
5,923

 
$
220,131

 
$
226,054

 
$
2,714

 
$
54,076

 
$
56,790

 
 
 
 
 
 
 
 
 
 
 
 
 
Recorded investment
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
9

 
$
25,125

 
$
25,134

 
$
—

 
$
4,292

 
$
4,292

Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied
 
689

 
21,893

 
22,582

 
—

 
497

 
497

Non-owner occupied
 
1,837

 
33,293

 
35,130

 
—

 
3,874

 
3,874

Construction and development
 
 
 
 
 
 
 
 
 
 
 
 
Land and land development
 
—

 
7,512

 
7,512

 
395

 
4,175

 
4,570

Construction
 
—

 
2,760

 
2,760

 
—

 
—

 
—

Residential real estate
 
 
 
 
 
 
 
 
 
 
 
 
Non-jumbo
 
1,485

 
109,570

 
111,055

 
789

 
32,213

 
33,002

Jumbo
 
999

 
3,400

 
4,399

 
1,017

 
3,900

 
4,917

Home equity
 
—

 
3,311

 
3,311

 
—

 
—

 
—

Consumer
 
—

 
11,229

 
11,229

 
—

 
4,460

 
4,460

Other
 
—

 
211

 
211

 
—

 
—

 
—

Total recorded investment
 
$
5,019

 
$
218,304

 
$
223,323

 
$
2,201

 
$
53,411

 
$
55,612
Summary of Change in Accretable Yield PCI Loans
The following table presents a summary of the change in the accretable yield of the PCI loan portfolio during 2017 and 2016:
Dollars in thousands
 
2017
 
2016
Accretable yield, January 1
 
$
290

 
$
—

Additions for Highland County Bankshares, Inc. acquisition
 
—

 
333

Additions for First Century Bankshares, Inc. acquisition
 
661

 
—

Accretion
 
(162
)
 
(20
)
Reclassification of nonaccretable difference due to improvement in expected cash flows
 
(31
)
 
—

Other changes, net
 
(13
)
 
(23
)
Accretable yield, December 31
 
$
745

 
$
290
Schedule Of Loan Maturities
The following presents loan maturities at December 31, 2017:
 
Within
 
After 1 but
 
After
Dollars in thousands
1 Year
 
within 5 Years
 
5 Years
Commercial
$
85,136

 
$
70,697

 
$
34,148

Commercial real estate
42,264

 
91,826

 
601,014

Construction and development
48,112

 
8,723

 
43,796

Residential real estate
32,677

 
56,346

 
411,373

Mortgage warehouse lines
30,757

 
—

 
—

Consumer
6,303

 
25,419

 
4,480

Other
706

 
2,707

 
9,825

 
$
245,955

 
$
255,718

 
$
1,104,636

Loans due after one year with:
 

 
 

 
 

Variable rates
 

 
$
412,278

 
 

Fixed rates
 

 
948,076

 
 

 
 

 
$
1,360,354

 
 
Schedule Of Contractual Aging Of Recorded Investment In Past Due Loans By Class
The following table presents the contractual aging of the recorded investment in past due loans by class as of December 31, 2017 and 2016.
 
At December 31, 2017
 
Past Due
 
 
 
> 90 days and Accruing
Dollars in thousands
30-59 days
 
60-89 days
 
> 90 days
 
Total
 
Current
 
Commercial
$
488

 
$
98

 
$
229

 
$
815

 
$
189,166

 
$
—

Commercial real estate
 

 
 

 
 

 
 

 
 

 
 

Owner-occupied
626

 
162

 
507

 
1,295

 
248,907

 
—

Non-owner occupied
369

 
150

 
2,065

 
2,584

 
482,318

 
237

Construction and development
 

 
 

 
 

 
 

 
 

 
 

Land and land development
1,132

 
—

 
3,563

 
4,695

 
62,524

 
—

Construction
—

 
—

 
—

 
—

 
33,412

 
—

Residential mortgage
 

 
 

 
 

 
 

 
 

 
 

Non-jumbo
4,220

 
2,379

 
4,451

 
11,050

 
343,051

 
—

Jumbo
—

 
—

 
—

 
—

 
62,267

 
—

Home equity
1,978

 
—

 
530

 
2,508

 
81,520

 
—

Mortgage warehouse lines
—

 
—

 
—

 
—

 
30,757

 
—

Consumer
417

 
196

 
167

 
780

 
35,422

 
37

Other
—

 
—

 
—

 
—

 
13,238

 
—

Total
$
9,230

 
$
2,985

 
$
11,512

 
$
23,727

 
$
1,582,582

 
$
274

 
 
At December 31, 2016
 
Past Due
 
 
 
> 90 days and Accruing
Dollars in thousands
30-59 days
 
60-89 days
 
> 90 days
 
Total
 
Current
 
Commercial
$
90

 
$
86

 
$
165

 
$
341

 
$
118,747

 
$
—

Commercial real estate
 

 
 

 
 

 
 

 
 

 
 

Owner-occupied
93

 
—

 
509

 
602

 
202,445

 
—

Non-owner occupied
340

 
—

 
65

 
405

 
381,516

 
—

Construction and development
 
 
 

 
 

 
 

 
 

 
 

Land and land development
423

 
129

 
3,852

 
4,404

 
67,638

 
—

Construction
—

 
—

 
—

 
—

 
16,584

 
—

Residential mortgage
 

 
 

 
 

 
 

 
 

 
 

Non-jumbo
4,297

 
1,889

 
3,287

 
9,473

 
256,168

 
—

Jumbo
—

 
—

 
—

 
—

 
65,628

 
—

Home equity
—

 
302

 
57

 
359

 
74,237

 
—

Mortgage warehouse lines
—

 
—

 
—

 
—

 
85,966

 
—

Consumer
308

 
84

 
150

 
542

 
24,992

 
—

Other
—

 
—

 
—

 
—

 
9,489

 
—

Total
$
5,551

 
$
2,490

 
$
8,085

 
$
16,126

 
$
1,303,410

 
$
—
Schedule of Financing Receivables, Non Accrual Status
Nonaccrual loans:  The following table presents the nonaccrual loans included in the net balance of loans at December 31, 2017 and 2016.
Dollars in thousands
 
2017
 
2016
Commercial
 
$
696

 
$
298

Commercial real estate
 
 

 
 

Owner-occupied
 
726

 
509

Non-owner occupied
 
2,201

 
4,336

Construction and development
 
 

 
 

Land & land development
 
3,569

 
4,465

Construction
 
—

 
—

Residential mortgage
 
 

 
 

Non-jumbo
 
6,944

 
4,621

Jumbo
 
—

 
—

Home equity
 
712

 
194

Mortgage warehouse lines
 
—

 
—

Consumer
 
201

 
151

Total
 
$
15,049

 
$
14,574
Impaired Financing Receivables
The following tables present loans individually evaluated for impairment at December 31, 2017 and 2016.
 
December 31, 2017
Dollars in thousands
Recorded
Investment
 
Unpaid
Principal Balance
 
Related
Allowance
 
Average
Impaired
Balance
 
Interest Income
Recognized
while impaired
 
 
 
 
 
 
 
 
 
 
Without a related allowance
 
 
 
 
 
 
 
 
 
Commercial
$
243

 
$
243

 
$
—

 
$
259

 
$
13

Commercial real estate
 

 
 

 
 

 
 

 
 

Owner-occupied
7,109

 
7,111

 
—

 
5,149

 
265

Non-owner occupied
9,105

 
9,106

 
—

 
9,736

 
684

Construction and development
 

 
 

 
 

 
 

 
 

Land & land development
5,018

 
5,018

 
—

 
4,743

 
329

Construction
—

 
—

 
—

 
—

 
—

Residential real estate
 

 
 

 
 

 
 

 
 

Non-jumbo
4,190

 
4,199

 
—

 
4,214

 
240

Jumbo
3,555

 
3,554

 
—

 
3,592

 
228

Home equity
523

 
523

 
—

 
523

 
35

Mortgage warehouse lines
—

 
—

 
—

 
—

 
—

Consumer
17

 
17

 
—

 
28

 
3

Total without a related allowance
$
29,760

 
$
29,771

 
$
—

 
$
28,244

 
$
1,797

 
 
 
 
 
 
 
 
 
 
With a related allowance
 

 
 

 
 

 
 

 
 

Commercial
$
252

 
$
252

 
$
252

 
$
262

 
$
—

Commercial real estate
 

 
 

 
 

 
 
 
 

Owner-occupied
2,436

 
2,436

 
125

 
2,451

 
161

Non-owner occupied
1,338

 
1,344

 
517

 
676

 
43

Construction and development
 

 
 

 
 

 
 

 
 

Land & land development
1,464

 
1,464

 
524

 
1,477

 
74

Construction
—

 
—

 
—

 
—

 
—

Residential real estate
 

 
 

 
 

 
 

 
 

Non-jumbo
1,717

 
1,718

 
158

 
1,691

 
100

Jumbo
838

 
839

 
14

 
845

 
57

Home equity
—

 
—

 
—

 
—

 
—

Mortgage warehouse lines
—

 
—

 
—

 
—

 
—

Consumer
—

 
—

 
—

 
—

 
—

Total with a related allowance
$
8,045

 
$
8,053

 
$
1,590

 
$
7,402

 
$
435

 
 
 
 
 
 
 
 
 
 
Total
 

 
 

 
 

 
 

 
 

Commercial
$
26,965

 
$
26,974

 
$
1,418

 
$
24,753

 
$
1,569

Residential real estate
10,823

 
10,833

 
172

 
10,865

 
660

Consumer
17

 
17

 
—

 
28

 
3

Total
$
37,805

 
$
37,824

 
$
1,590

 
$
35,646

 
$
2,232


The above table does not include PCI loans.



 
December 31, 2016
Dollars in thousands
Recorded
Investment
 
Unpaid
Principal Balance
 
Related
Allowance
 
Average
Impaired
Balance
 
Interest Income
Recognized
while impaired
 
 
 
 
 
 
 
 
 
 
Without a related allowance
 
 
 
 
 
 
 
 
 
Commercial
$
285

 
$
285

 
$
—

 
$
247

 
$
10

Commercial real estate
 

 
 

 
 

 
 

 
 

Owner-occupied
520

 
520

 
—

 
534

 
31

Non-owner occupied
10,203

 
10,205

 
—

 
10,675

 
294

Construction and development
 
 
 

 
 

 
 

 
 

Land & land development
5,227

 
5,227

 
—

 
5,270

 
80

Construction
—

 
—

 
—

 
—

 
—

Residential real estate
 

 
 

 
 

 
 

 
 

Non-jumbo
4,055

 
4,065

 
—

 
3,910

 
193

Jumbo
3,640

 
3,639

 
—

 
3,693

 
175

Home equity
524

 
523

 
—

 
523

 
22

Mortgage warehouse lines
—

 
—

 
—

 
—

 
—

Consumer
44

 
44

 
—

 
50

 
5

Total without a related allowance
$
24,498

 
$
24,508

 
$
—

 
$
24,902

 
$
810

 
 
 
 
 
 
 
 
 
 
With a related allowance
 

 
 

 
 

 
 

 
 

Commercial
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Commercial real estate
 

 
 

 
 

 
 

 
 

Owner-occupied
6,864

 
6,864

 
347

 
6,879

 
269

Non-owner occupied
1,311

 
1,311

 
197

 
1,327

 
43

Construction and development
 
 
 

 
 

 
 

 
 

Land & land development
2,066

 
2,066

 
585

 
2,074

 
80

Construction
—

 
—

 
—

 
—

 
—

Residential real estate
 

 
 

 
 

 
 

 
 

Non-jumbo
2,055

 
2,057

 
251

 
1,851

 
78

Jumbo
853

 
853

 
24

 
862

 
44

Home equity
—

 
—

 
—

 
—

 
—

Mortgage warehouse lines
—

 
—

 
—

 
—

 
—

Consumer
—

 
—

 
—

 
—

 
—

Total with a related allowance
$
13,149

 
$
13,151

 
$
1,404

 
$
12,993

 
$
514

 
 
 
 
 
 
 
 
 
 
Total
 

 
 

 
 

 
 

 
 

Commercial
$
26,476

 
$
26,478

 
$
1,129

 
$
27,006

 
$
807

Residential real estate
11,127

 
11,137

 
275

 
10,839

 
512

Consumer
44

 
44

 
—

 
50

 
5

Total
$
37,647

 
$
37,659

 
$
1,404

 
$
37,895

 
$
1,324
Troubled Debt Restructurings on Financing Receivables
All TDRs are evaluated individually for allowance for loan loss purposes.
 
2017
 
2016
Dollars in thousands
Number of
Modifications
 
Pre-modification
Recorded
Investment
 
Post-modification
Recorded
Investment
 
Number of
Modifications
 
Pre-modification
Recorded
Investment
 
Post-modification
Recorded
Investment
Commercial
—

 
$
—

 
$
—

 
—

 
$
—

 
$
—

Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied
1

 
2,302

 
2,302

 
—

 
—

 
—

Non-owner occupied
2

 
489

 
489

 
—

 
—

 
—

Construction and development
 
 
 
 
 
 
 
 
 
 
 
Land & land development
1

 
438

 
438

 
—

 
—

 
—

Construction
—

 
—

 
—

 
—

 
—

 
—

Residential real estate
 
 
 
 
 
 
 
 
 
 
 
Non-jumbo
4

 
642

 
642

 
4

 
693

 
696

Jumbo
—

 
—

 
—

 
—

 
—

 
—

Home equity
—

 
—

 
—

 
—

 
—

 
—

Mortgage warehouse lines
—

 
—

 
—

 
—

 
—

 
—

Consumer
—

 
—

 
—

 
1

 
2

 
2

Total
8

 
$
3,871

 
$
3,871

 
5

 
$
695

 
$
698
Schedule Of Defaults During Stated Period Of Trouble Debt Restructurings
For purposes of these tables, a default is considered as either the loan was past due 30 days or more at any time during the period, or the loan was fully or partially charged off during the period. 
 
2017
 
2016
Dollars in thousands
Number
of
Defaults
 
Recorded
Investment
at Default Date
 
Number
of
Defaults
 
Recorded
Investment
at Default Date
Commercial
—

 
$
—

 
—

 
$
—

Commercial real estate


 


 


 


Owner-occupied
1

 
2,291

 
—

 
—

Non-owner occupied
—

 
—

 
—

 
—

Construction and development

 


 


 


Land & land development
1

 
437

 
—

 
—

Construction
—

 
—

 
—

 
—

Residential real estate


 


 


 


Non-jumbo
3

 
767

 
3

 
452

Jumbo
—

 
—

 
—

 
—

Home equity
—

 
—

 
—

 
—

Mortgage warehouse lines
—

 
—

 
—

 
—

Consumer
—

 
—

 
1

 
2

Total
5

 
$
3,495

 
4

 
$
454
Schedule of the Activity Regarding TDRs by Loan Type
The following table details the activity regarding TDRs by loan type during 2017 and the related allowance on TDRs.
2017
 
Construction & Land Development
 
 
 
Commercial Real Estate
 
Residential Real Estate
 
 
 
 
 
 
 
 
Dollars in thousands
Land &
Land
Develop-
ment
 
Construc-
tion
 
Commer-
cial
 
Owner
Occupied
 
Non-
Owner
Occupied
 
Non-
jumbo
 
Jumbo
 
Home
Equity
 
Mortgage Warehouse Lines
 
Con-
sumer
 
Other
 
Total
Troubled debt restructurings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance January 1, 2017
$
3,337

 
$
—

 
$
711

 
$
7,384

 
$
6,714

 
$
5,417

 
$
4,493

 
$
523

 
$
—

 
$
44

 
$
—

 
$
28,623

Additions
438

 
—

 
—

 
2,302

 
489

 
642

 
—

 
—

 
—

 
—

 
—

 
3,871

Charge-offs
—

 
—

 
—

 
—

 
(65
)
 
—

 
—

 
—

 
—

 
—

 
—

 
(65
)
Net (paydowns) advances
(732
)
 
—

 
(299
)
 
(141
)
 
(1,904
)
 
(514
)
 
(100
)
 
—

 
—

 
(26
)
 
—

 
(3,716
)
Transfer into foreclosed properties
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Refinance out of TDR status
—

 
—

 
—

 
—

 
—

 
(350
)
 
—

 
—

 
—

 
—

 
—

 
(350
)
Balance, December 31, 2017
$
3,043

 
$
—

 
$
412

 
$
9,545

 
$
5,234

 
$
5,195

 
$
4,393

 
$
523

 
$
—

 
$
18

 
$
—

 
$
28,363

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance related to troubled debt restructurings
$
453

 
$
—

 
$
252

 
$
125

 
$
25

 
$
158

 
$
14

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,027
Financing Receivable Credit Quality Indicators
The following table presents the recorded investment in construction and development, commercial and commercial real estate loans which are generally evaluated based upon our internal risk ratings defined above.
Loan Risk Profile by Internal Risk Rating
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and Development
 
 
 
 
 
Commercial Real Estate
 
 
 
 
 
Land and Land Development
 
Construction
 
Commercial
 
Owner Occupied
 
Non-Owner Occupied
 
Mortgage Warehouse Lines
Dollars in thousands
2017
 
2016
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
Pass
$
60,850

 
$
64,144

 
$
33,412

 
$
16,584

 
$
186,941

 
$
117,214

 
$
242,702

 
$
201,113

 
$
474,522

 
$
375,181

 
$
30,757

 
$
85,966

OLEM (Special Mention)
1,397

 
2,097

 
—

 
—

 
2,267

 
1,471

 
3,534

 
567

 
2,221

 
1,381

 
—

 
—

Substandard
4,972

 
5,801

 
—

 
—

 
773

 
403

 
3,966

 
1,367

 
8,159

 
5,359

 
—

 
—

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Loss
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
67,219

 
$
72,042

 
$
33,412

 
$
16,584

 
$
189,981

 
$
119,088

 
$
250,202

 
$
203,047

 
$
484,902

 
$
381,921

 
$
30,757

 
$
85,966
Schedule Of Recorded Investment Evaluated Based On Aging Status Of Loans And Payment Activity
The following table presents the recorded investment in consumer, residential real estate and home equity loans, which are generally evaluated based on the aging status of the loans, which was previously presented, and payment activity.
 
Performing
 
Nonperforming
Dollars in thousands
2017
 
2016
 
2017
 
2016
Residential real estate
 
 
 
 
 
 
 
Non-jumbo
$
347,183

 
$
261,020

 
$
6,918

 
$
4,621

Jumbo
62,267

 
65,628

 
—

 
—

Home Equity
83,316

 
74,402

 
712

 
194

Consumer
35,932

 
25,368

 
270

 
166

Other
13,238

 
9,489

 
—

 
—

Total
$
541,936

 
$
435,907

 
$
7,900

 
$
4,981
Schedule of Related Party Loans Aggregating $60,000 or More
The following presents the activity with respect to related party loans aggregating $60,000 or more to any one related party (other changes represent additions to and changes in director and executive officer status):
Dollars in thousands
2017
 
2016
Balance, beginning
$
45,164

 
$
22,974

Additions
13,497

 
33,004

Amounts collected
(11,802
)
 
(12,318
)
Other changes, net
(1,161
)
 
1,504

Balance, ending
$
45,698

 
$
45,164