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Loans (Tables)
9 Months Ended
Sep. 30, 2018
Loans and Leases Receivable Disclosure [Abstract]  
Summary of Loans, Net of Unearned Fees
Loans are summarized as follows:
Dollars in thousands
 
September 30,
2018
 
December 31,
2017
Commercial
 
$
167,972

 
$
189,981

Commercial real estate
 
 

 
 

Owner-occupied
 
272,475

 
250,202

Non-owner occupied
 
530,568

 
484,902

Construction and development
 
 

 
 

Land and land development
 
71,819

 
67,219

Construction
 
25,703

 
33,412

Residential real estate
 
 

 
 

Non-jumbo
 
340,783

 
354,101

Jumbo
 
72,327

 
62,267

Home equity
 
82,018

 
84,028

Mortgage warehouse lines
 
35,910

 
30,757

Consumer
 
33,664

 
36,202

Other
 
12,452

 
13,238

Total loans, net of unearned fees
 
1,645,691

 
1,606,309

Less allowance for loan losses
 
12,944

 
12,565

Loans, net
 
$
1,632,747

 
$
1,593,744

Schedule of Acquired Loans
The outstanding balance and the recorded investment of acquired loans included in the consolidated balance sheet at September 30, 2018 and December 31, 2017 are as follows:

 
 
Acquired Loans
 
 
September 30, 2018
 
December 31, 2017
Dollars in thousands
 
Purchased Credit Impaired
 
Purchased Performing
 
Total
 
Purchased Credit Impaired
 
Purchased Performing
 
Total
Outstanding balance
 
$
5,228

 
$
159,567

 
$
164,795

 
$
5,923

 
$
220,131

 
$
226,054

 
 
 
 
 
 
 
 
 
 
 
 
 
Recorded investment
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
$

 
$
7,969

 
$
7,969

 
$
9

 
$
25,125

 
$
25,134

Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied
 
682

 
18,620

 
19,302

 
689

 
21,893

 
22,582

Non-owner occupied
 
1,314

 
28,492

 
29,806

 
1,837

 
33,293

 
35,130

Construction and development
 
 
 
 
 
 
 
 
 
 
 
 
Land and land development
 

 
6,066

 
6,066

 

 
7,512

 
7,512

Construction
 

 

 

 

 
2,760

 
2,760

Residential real estate
 
 
 
 
 
 
 
 
 
 
 
 
Non-jumbo
 
1,407

 
84,482

 
85,889

 
1,485

 
109,570

 
111,055

Jumbo
 
976

 
2,598

 
3,574

 
999

 
3,400

 
4,399

Home equity
 

 
2,839

 
2,839

 

 
3,311

 
3,311

Consumer
 

 
6,793

 
6,793

 

 
11,229

 
11,229

Other
 

 
129

 
129

 

 
211

 
211

Total recorded investment
 
$
4,379

 
$
157,988

 
$
162,367

 
$
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 purchased credit impaired ("PCI") loan portfolio for the three and nine months ended September 30, 2018 and 2017:
 
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
Dollars in thousands
 
2018
 
2017
 
2018
 
2017
Accretable yield
 
$
676

 
$
851

 
$
745

 
$
290

Accretion
 
(12
)
 
(49
)
 
(81
)
 
(135
)
Additions for First Century Bankshares, Inc. acquisition
 

 

 

 
661

Reclassification of nonaccretable difference due to improvement
    in expected cash flows
 

 

 

 

Other changes, net
 

 
1

 

 
(13
)
Accretable yield, September 30
 
$
664

 
$
803

 
$
664

 
$
803

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 September 30, 2018 and December 31, 2017.
 
At September 30, 2018
 
Past Due
 
 
 
> 90 days and Accruing
Dollars in thousands
30-59 days
 
60-89 days
 
> 90 days
 
Total
 
Current
 
Commercial
$
550

 
$
266

 
$
391

 
$
1,207

 
$
166,765

 
$

Commercial real estate
 

 
 

 
 

 
 

 
 

 
 

Owner-occupied
612

 

 
2,326

 
2,938

 
269,537

 
1,991

Non-owner occupied
385

 
67

 
2,227

 
2,679

 
527,889

 

Construction and development
 

 
 

 
 

 
 

 
 

 
 

Land and land development
120

 
277

 
3,196

 
3,593

 
68,226

 

Construction

 

 

 

 
25,703

 

Residential mortgage
 

 
 

 
 

 
 

 
 

 
 

Non-jumbo
4,854

 
1,397

 
4,685

 
10,936

 
329,847

 
68

Jumbo

 

 

 

 
72,327

 

Home equity
95

 

 
92

 
187

 
81,831

 

Mortgage warehouse lines

 

 

 

 
35,910

 

Consumer
259

 
102

 
113

 
474

 
33,190

 
156

Other

 

 

 

 
12,452

 

Total
$
6,875

 
$
2,109

 
$
13,030

 
$
22,014

 
$
1,623,677

 
$
2,215

 
 
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 September 30, 2018 and December 31, 2017.
 
 
September 30,
 
December 31,
Dollars in thousands
 
2018
 
2017
Commercial
 
$
801

 
$
696

Commercial real estate
 
 

 
 

Owner-occupied
 
551

 
726

Non-owner occupied
 
2,548

 
2,201

Construction and development
 
 

 
 

Land & land development
 
3,200

 
3,569

Construction
 

 

Residential mortgage
 
 

 
 

Non-jumbo
 
7,371

 
6,944

Jumbo
 

 

Home equity
 
204

 
712

Mortgage warehouse lines
 

 

Consumer
 
80

 
201

Total
 
$
14,755

 
$
15,049

Impaired Financing Receivables
The following tables present loans individually evaluated for impairment at September 30, 2018 and December 31, 2017.
 
September 30, 2018
Dollars in thousands
Recorded
Investment
 
Unpaid
Principal Balance
 
Related
Allowance
 
Average
Impaired
Balance
 
Interest Income
Recognized
while impaired
 
 
 
 
 
 
 
 
 
 
Without a related allowance
 
 
 
 
 
 
 
 
 
Commercial
$
4,400

 
$
4,400

 
$

 
$
438

 
$
12

Commercial real estate
 

 
 

 
 

 
 

 
 

Owner-occupied
9,007

 
9,012

 

 
7,630

 
308

Non-owner occupied
9,106

 
9,108

 

 
9,175

 
487

Construction and development
 

 
 

 
 

 
 

 
 

Land & land development
4,128

 
4,128

 

 
4,291

 
63

Construction

 

 

 

 

Residential real estate
 

 
 

 
 

 
 

 
 

Non-jumbo
4,448

 
4,458

 

 
3,572

 
161

Jumbo
3,480

 
3,479

 

 
3,504

 
167

Home equity
523

 
523

 

 
523

 
30

Mortgage warehouse lines

 

 

 

 

Consumer
11

 
11

 

 
13

 
1

Total without a related allowance
$
35,103

 
$
35,119

 
$

 
$
29,146

 
$
1,229

 
 
 
 
 
 
 
 
 
 
With a related allowance
 

 
 

 
 

 
 

 
 

Commercial
$
83

 
$
83

 
$
26

 
$
72

 
$

Commercial real estate
 

 
 

 
 

 
 

 
 

Owner-occupied
2,369

 
2,369

 
271

 
2,392

 
117

Non-owner occupied
708

 
714

 
88

 
749

 
17

Construction and development
 

 
 

 
 

 
 

 
 

Land & land development
1,756

 
1,756

 
772

 
1,773

 
98

Construction

 

 

 

 

Residential real estate
 
 
 
 
 
 
 
 
 
Non-jumbo
2,932

 
2,932

 
588

 
2,425

 
97

Jumbo
826

 
826

 
107

 
830

 
48

Home equity

 

 

 

 

Mortgage warehouse lines

 

 

 

 

Consumer

 

 

 

 

Total with a related allowance
$
8,674

 
$
8,680

 
$
1,852

 
$
8,241

 
$
377

 
 
 
 
 
 
 
 
 
 
Total
 

 
 

 
 

 
 

 
 

Commercial
$
31,557

 
$
31,570

 
$
1,157

 
$
26,520

 
$
1,102

Residential real estate
12,209

 
12,218

 
695

 
10,854

 
503

Consumer
11

 
11

 

 
13

 
1

Total
$
43,777

 
$
43,799

 
$
1,852

 
$
37,387

 
$
1,606


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 tables present by class the TDRs that were restructured during the three and nine months ended September 30, 2018 and September 30, 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 
 September 30, 2018
 
For the Three Months Ended 
 September 30, 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
Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied

 
$

 
$

 
1

 
$
2,302

 
$
2,302

Non-owner occupied

 

 

 
1

 
148

 
148

Construction and development
 
 
 
 
 
 
 
 
 
 
 
Land & land development

 

 

 
1

 
438

 
438

Residential real estate
 
 
 
 
 
 
 
 
 
 
 
Non-jumbo
2

 
94

 
94

 

 

 

Total
2

 
$
94

 
$
94

 
3

 
$
2,888

 
$
2,888


 
For the Nine Months Ended 
 September 30, 2018
 
For the Nine Months Ended 
 September 30, 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
Commercial
2

 
$
157

 
$
157

 

 
$

 
$

Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied

 
$

 
$

 
1

 
2,302

 
2,302

Non-owner occupied

 

 

 
1

 
148

 
148

Construction and development
 
 
 
 
 
 
 
 
 
 
 
Land & land development

 

 

 
1

 
438

 
438

Residential real estate
 
 
 
 
 
 
 
 
 
 
 
Non-jumbo
8

 
899

 
899

 
5

 
1,086

 
1,086

Total
10

 
$
1,056

 
$
1,056

 
8

 
$
3,974

 
$
3,974


Schedule of Defaults During Stated Period of Trouble Debt Restructurings
The following tables present 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 
 September 30, 2018
 
For the Three Months Ended 
 September 30, 2017
Dollars in thousands
Number
of
Defaults
 
Recorded
Investment
at Default Date
 
Number
of
Defaults
 
Recorded
Investment
at Default Date
Construction and development

 


 
 
 
 
Land & land development

 
$

 
1

 
$
437

Residential real estate


 


 
 
 
 
Non-jumbo

 

 
4

 
1,104

Total

 
$

 
5

 
$
1,541


 
For the Nine Months Ended 
 September 30, 2018
 
For the Nine Months Ended 
 September 30, 2017
Dollars in thousands
Number
of
Defaults
 
Recorded
Investment
at Default Date
 
Number
of
Defaults
 
Recorded
Investment
at Default Date
Commercial
2

 
$
157

 

 
$

Commercial real estate
 
 
 
 
 
 
 
Non-owner occupied
1

 
341

 

 

Construction and development
 
 
 
 
 
 
 
Land & land development

 

 
1

 
437

Residential real estate
 
 
 
 
 
 
 
Non-jumbo
3

 
628

 
4

 
1,204

Total
6

 
$
1,126

 
5

 
$
1,641

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 and nine months ended September 30, 2018, and the related allowance on TDRs.
For the Three Months Ended September 30, 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 July 1, 2018
$
2,948

 
$

 
$
293

 
$
9,433

 
$
5,306

 
$
4,972

 
$
4,339

 
$
523

 
$

 
$
13

 
$

 
$
27,827

Additions

 

 

 

 

 
94

 

 

 

 

 

 
94

Charge-offs

 

 

 

 

 

 

 

 

 

 

 

Net (paydowns) advances
(203
)
 

 
(13
)
 
(48
)
 
(38
)
 
(31
)
 
(33
)
 

 

 
(2
)
 

 
(368
)
Transfer into foreclosed properties

 

 

 

 

 

 

 

 

 

 

 

Refinance out of TDR status

 

 

 

 

 

 

 

 

 

 

 

Balance, September 30, 2018
$
2,745

 
$

 
$
280

 
$
9,385

 
$
5,268

 
$
5,035

 
$
4,306

 
$
523

 
$

 
$
11

 
$

 
$
27,553

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance related to troubled debt restructurings
$
772

 
$

 
$

 
$
271

 
$
12

 
$
210

 
$
107

 
$

 
$

 
$

 
$

 
$
1,372


For the Nine Months Ended September 30, 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

 

 
157

 

 

 
899

 

 

 

 

 

 
1,056

Charge-offs

 

 

 

 

 
(55
)
 

 

 

 

 

 
(55
)
Net (paydowns) advances
(298
)
 

 
(289
)
 
(160
)
 
34

 
(1,004
)
 
(87
)
 

 

 
(7
)
 

 
(1,811
)
Transfer into foreclosed properties

 

 

 

 

 

 

 

 

 

 

 

Refinance out of TDR status

 

 

 

 

 

 

 

 

 

 

 

Balance, September 30, 2018
$
2,745

 
$

 
$
280

 
$
9,385

 
$
5,268

 
$
5,035

 
$
4,306

 
$
523

 
$

 
$
11

 
$

 
$
27,553

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance related to troubled debt restructurings
$
772

 
$

 
$

 
$
271

 
$
12

 
$
210

 
$
107

 
$

 
$

 
$

 
$

 
$
1,372


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
9/30/2018
 
12/31/2017
 
9/30/2018
 
12/31/2017
 
9/30/2018
 
12/31/2017
 
9/30/2018
 
12/31/2017
 
9/30/2018
 
12/31/2017
 
9/30/2018
12/31/2017
Pass
$
66,657

 
$
60,850

 
$
25,560

 
$
33,412

 
$
161,682

 
$
186,941

 
$
264,991

 
$
242,702

 
$
522,182

 
$
474,522

 
$
35,910

$
30,757

OLEM (Special Mention)
567

 
1,397

 
143

 

 
1,520

 
2,267

 
2,380

 
3,534

 
1,549

 
2,221

 


Substandard
4,595

 
4,972

 

 

 
4,770

 
773

 
5,104

 
3,966

 
6,837

 
8,159

 


Doubtful

 

 

 

 

 

 

 

 

 

 


Loss

 

 

 

 

 

 

 

 

 

 


Total
$
71,819

 
$
67,219

 
$
25,703

 
$
33,412

 
$
167,972

 
$
189,981

 
$
272,475

 
$
250,202

 
$
530,568

 
$
484,902

 
$
35,910

$
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
9/30/2018
 
12/31/2017
 
9/30/2018
 
12/31/2017
Residential real estate
 
 
 
 
 
 
 
Non-jumbo
$
333,227

 
$
347,183

 
$
7,556

 
$
6,918

Jumbo
72,327

 
62,267

 

 

Home Equity
81,814

 
83,316

 
204

 
712

Consumer
33,545

 
35,932

 
119

 
270

Other
12,452

 
13,238

 

 

Total
$
533,365

 
$
541,936

 
$
7,879

 
$
7,900