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Loans (Tables)
 3 Months Ended
Mar. 31, 2018
Loans and Leases Receivable Disclosure [Abstract]  
Summary of Loans, Net of Unearned Fees
Loans are summarized as follows:
Dollars in thousands
 
March 31,
2018
 
December 31,
2017
Commercial
 
$
189,586

 
$
189,981

Commercial real estate
 
 

 
 

Owner-occupied
 
265,075

 
250,202

Non-owner occupied
 
498,445

 
484,902

Construction and development
 
 

 
 

Land and land development
 
66,841

 
67,219

Construction
 
33,327

 
33,412

Residential real estate
 
 

 
 

Non-jumbo
 
346,477

 
354,101

Jumbo
 
67,169

 
62,267

Home equity
 
83,382

 
84,028

Mortgage warehouse lines
 
45,702

 
30,757

Consumer
 
34,825

 
36,202

Other
 
12,578

 
13,238

Total loans, net of unearned fees
 
1,643,407

 
1,606,309

Less allowance for loan losses
 
12,257

 
12,565

Loans, net
 
$
1,631,150

 
$
1,593,744
Schedule of Acquired Loans
The outstanding balance and the recorded investment of acquired loans included in the consolidated balance sheet at March 31, 2018 and December 31, 2017 are as follows:

 
 
Acquired Loans
 
 
March 31, 2018
 
December 31, 2017
Dollars in thousands
 
Purchased Credit Impaired
 
Purchased Performing
 
Total
 
Purchased Credit Impaired
 
Purchased Performing
 
Total
Outstanding balance
 
$
5,292

 
$
196,608

 
$
201,900

 
$
5,923

 
$
220,131

 
$
226,054

 
 
 
 
 
 
 
 
 
 
 
 
 
Recorded investment
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
—

 
$
17,945

 
$
17,945

 
$
9

 
$
25,125

 
$
25,134

Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied
 
689

 
20,323

 
21,012

 
689

 
21,893

 
22,582

Non-owner occupied
 
1,316

 
32,148

 
33,464

 
1,837

 
33,293

 
35,130

Construction and development
 
 
 
 
 
 
 
 
 
 
 
 
Land and land development
 
—

 
6,846

 
6,846

 
—

 
7,512

 
7,512

Construction
 
—

 
—

 
—

 
—

 
2,760

 
2,760

Residential real estate
 
 
 
 
 
 
 
 
 
 
 
 
Non-jumbo
 
1,453

 
100,734

 
102,187

 
1,485

 
109,570

 
111,055

Jumbo
 
993

 
4,074

 
5,067

 
999

 
3,400

 
4,399

Home equity
 
—

 
3,236

 
3,236

 
—

 
3,311

 
3,311

Consumer
 
—

 
9,434

 
9,434

 
—

 
11,229

 
11,229

Other
 
—

 
155

 
155

 
—

 
211

 
211

Total recorded investment
 
$
4,451

 
$
194,895

 
$
199,346

 
$
5,019

 
$
218,304

 
$
223,323
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 for the three months ended March 31, 2018 and 2017:
Dollars in thousands
 
Three Months Ended 
 March 31, 2018
 
Three Months Ended 
 March 31, 2017
Accretable yield, January 1
 
$
745

 
$
290

Accretion
 
(37
)
 
(31
)
Reclassification of nonaccretable difference due to improvement in expected cash flows
 
—

 
—

Other changes, net
 
—

 
(14
)
Accretable yield, March 31
 
$
708

 
$
245
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 March 31, 2018 and December 31, 2017.
 
At March 31, 2018
 
Past Due
 
 
 
> 90 days and Accruing
Dollars in thousands
30-59 days
 
60-89 days
 
> 90 days
 
Total
 
Current
 
Commercial
$
675

 
$
22

 
$
378

 
$
1,075

 
$
188,511

 
$
49

Commercial real estate
 

 
 

 
 

 
 

 
 

 
 

Owner-occupied
130

 
295

 
351

 
776

 
264,299

 
—

Non-owner occupied
196

 
610

 
1,852

 
2,658

 
495,787

 
—

Construction and development
 

 
 

 
 

 
 

 
 

 
 

Land and land development
179

 
—

 
3,637

 
3,816

 
63,025

 
—

Construction
—

 
—

 
—

 
—

 
33,327

 
—

Residential mortgage
 

 
 

 
 

 
 

 
 

 
 

Non-jumbo
3,392

 
1,503

 
4,611

 
9,506

 
336,971

 
—

Jumbo
969

 
—

 
—

 
969

 
66,200

 
—

Home equity
76

 
98

 
272

 
446

 
82,936

 
64

Mortgage warehouse lines
—

 
—

 
—

 
—

 
45,702

 
—

Consumer
293

 
185

 
104

 
582

 
34,243

 
32

Other
—

 
—

 
—

 
—

 
12,578

 
—

Total
$
5,910

 
$
2,713

 
$
11,205

 
$
19,828

 
$
1,623,579

 
$
145

 
 
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
Schedule of Financing Receivables, Non Accrual Status
The following table presents the nonaccrual loans included in the net balance of loans at March 31, 2018 and December 31, 2017.
 
 
March 31,
 
December 31,
Dollars in thousands
 
2018
 
2017
Commercial
 
$
685

 
$
696

Commercial real estate
 
 

 
 

Owner-occupied
 
561

 
726

Non-owner occupied
 
2,840

 
2,201

Construction and development
 
 

 
 

Land & land development
 
3,642

 
3,569

Construction
 
—

 
—

Residential mortgage
 
 

 
 

Non-jumbo
 
7,101

 
6,944

Jumbo
 
—

 
—

Home equity
 
355

 
712

Mortgage warehouse lines
 
—

 
—

Consumer
 
128

 
201

Total
 
$
15,312

 
$
15,049
Impaired Financing Receivables
The following tables present loans individually evaluated for impairment at March 31, 2018 and December 31, 2017.
 
March 31, 2018
Dollars in thousands
Recorded
Investment
 
Unpaid
Principal Balance
 
Related
Allowance
 
Average
Impaired
Balance
 
Interest Income
Recognized
while impaired
 
 
 
 
 
 
 
 
 
 
Without a related allowance
 
 
 
 
 
 
 
 
 
Commercial
$
318

 
$
318

 
$
—

 
$
220

 
$
10

Commercial real estate
 

 
 

 
 

 
 

 
 

Owner-occupied
2,718

 
2,719

 
—

 
2,719

 
130

Non-owner occupied
9,752

 
9,757

 
—

 
9,757

 
491

Construction and development
 

 
 

 
 

 
 

 
 

Land & land development
5,017

 
5,017

 
—

 
5,017

 
104

Construction
—

 
—

 
—

 
—

 
—

Residential real estate
 

 
 

 
 

 
 

 
 

Non-jumbo
4,266

 
4,273

 
—

 
3,575

 
166

Jumbo
3,520

 
3,519

 
—

 
3,519

 
167

Home equity
523

 
523

 
—

 
523

 
27

Mortgage warehouse lines
—

 
—

 
—

 
—

 
—

Consumer
15

 
15

 
—

 
15

 
2

Total without a related allowance
$
26,129

 
$
26,141

 
$
—

 
$
25,345

 
$
1,097

 
 
 
 
 
 
 
 
 
 
With a related allowance
 

 
 

 
 

 
 

 
 

Commercial
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Commercial real estate
 

 
 

 
 

 
 

 
 

Owner-occupied
6,756

 
6,756

 
124

 
6,756

 
274

Non-owner occupied
329

 
331

 
24

 
331

 
23

Construction and development
 

 
 

 
 

 
 

 
 

Land & land development
1,455

 
1,456

 
515

 
1,456

 
54

Construction
—

 
—

 
—

 
—

 
—

Residential real estate
 
 
 
 
 
 
 
 
 
Non-jumbo
1,872

 
1,873

 
192

 
1,873

 
73

Jumbo
834

 
834

 
13

 
834

 
49

Home equity
—

 
—

 
—

 
—

 
—

Mortgage warehouse lines
—

 
—

 
—

 
—

 
—

Consumer
—

 
—

 
—

 
—

 
—

Total with a related allowance
$
11,246

 
$
11,250

 
$
868

 
$
11,250

 
$
473

 
 
 
 
 
 
 
 
 
 
Total
 

 
 

 
 

 
 

 
 

Commercial
$
26,345

 
$
26,354

 
$
663

 
$
26,256

 
$
1,086

Residential real estate
11,015

 
11,022

 
205

 
10,324

 
482

Consumer
15

 
15

 
—

 
15

 
2

Total
$
37,375

 
$
37,391

 
$
868

 
$
36,595

 
$
1,570


The table above does not include PCI loans.




 
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 table above does not include PCI loans.
Troubled Debt Restructurings on Financing Receivables [Table Text Block]
The following table presents by class the TDRs that were restructured during the three months ended March 31, 2018 and March 31, 2017 . Generally, the modifications were extensions of term, modifying the payment terms from principal and interest to interest only for an extended period, or reduction in interest rate.  All TDRs are evaluated individually for allowance for loan loss purposes.

 
For the Three Months Ended 
 March 31, 2018
 
For the Three Months Ended 
 March 31, 2017
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
Residential real estate
 
 
 
 
 
 
 
 
 
 
 
Non-jumbo
1

 
$
63

 
$
63

 
4

 
$
880

 
$
880

Total
1

 
$
63

 
$
63

 
4

 
$
880

 
$
880
Schedule of Defaults During Stated Period of Trouble Debt Restructurings
The following table presents defaults during the stated period of TDRs that were restructured during the past twelve months. 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.

 
For the Three Months Ended 
 March 31, 2018
Dollars in thousands
Number
of
Defaults
 
Recorded
Investment
at Default Date
Commercial real estate


 


Non-owner occupied
1

 
$
341

Construction and development

 


Land & land development
1

 
438

Residential real estate


 


Non-jumbo
1

 
64

Total
3

 
$
843
Schedule of the Activity Regarding TDRs by Loan Type
The following tables detail the activity regarding TDRs by loan type, net of fees, for the three months ended March 31, 2018, and the related allowance on TDRs.
For the Three Months Ended March 31, 2018
 
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, 2018
$
3,043

 
$
—

 
$
412

 
$
9,545

 
$
5,234

 
$
5,195

 
$
4,393

 
$
523

 
$
—

 
$
18

 
$
—

 
$
28,363

Additions
—

 
—

 
—

 
—

 
—

 
63

 
—

 
—

 
—

 
—

 
—

 
63

Charge-offs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Net (paydowns) advances
(75
)
 
—

 
(270
)
 
(71
)
 
244

 
(739
)
 
(39
)
 
—

 
—

 
(3
)
 
—

 
(953
)
Transfer into foreclosed properties
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Refinance out of TDR status
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Balance, March 31, 2018
$
2,968

 
$
—

 
$
142

 
$
9,474

 
$
5,478

 
$
4,519

 
$
4,354

 
$
523

 
$
—

 
$
15

 
$
—

 
$
27,473

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance related to troubled debt restructurings
$
441

 
$
—

 
$
—

 
$
124

 
$
24

 
$
192

 
$
13

 
$
—

 
$
—

 
$
—

 
$
—

 
$
794
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.
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
3/31/2018
 
12/31/2017
 
3/31/2018
 
12/31/2017
 
3/31/2018
 
12/31/2017
 
3/31/2018
 
12/31/2017
 
3/31/2018
 
12/31/2017
 
3/31/2018
12/31/2017
Pass
$
61,155

 
$
60,850

 
$
33,266

 
$
33,412

 
$
186,740

 
$
186,941

 
$
257,856

 
$
242,702

 
$
488,813

 
$
474,522

 
$
45,702

$
30,757

OLEM (Special Mention)
706

 
1,397

 
61

 
—

 
2,146

 
2,267

 
3,483

 
3,534

 
1,698

 
2,221

 
—

—

Substandard
4,980

 
4,972

 
—

 
—

 
700

 
773

 
3,736

 
3,966

 
7,934

 
8,159

 
—

—

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

—

Loss
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

—

Total
$
66,841

 
$
67,219

 
$
33,327

 
$
33,412

 
$
189,586

 
$
189,981

 
$
265,075

 
$
250,202

 
$
498,445

 
$
484,902

 
$
45,702

$
30,757
Schedule of Recorded Investment Evaluated Based on Aging Status of Loans and Payment Activity
The following table presents the recorded investment and payment activity in consumer, residential real estate, and home equity loans, which are generally evaluated based on the aging status of the loans.
 
Performing
 
Nonperforming
Dollars in thousands
3/31/2018
 
12/31/2017
 
3/31/2018
 
12/31/2017
Residential real estate
 
 
 
 
 
 
 
Non-jumbo
$
339,376

 
$
347,183

 
$
7,101

 
$
6,918

Jumbo
67,169

 
62,267

 
—

 
—

Home Equity
83,027

 
83,316

 
355

 
712

Consumer
34,650

 
35,932

 
175

 
270

Other
12,578

 
13,238

 
—

 
—

Total
$
536,800

 
$
541,936

 
$
7,631

 
$
7,900