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Loans (Tables)
 12 Months Ended
Dec. 31, 2018
Loans and Leases Receivable Disclosure [Abstract]  
Summary Of Loans, Net Of Unearned Fees
Loans are summarized as follows:
Dollars in thousands
 
2018
 
2017
Commercial
 
$
194,315

 
$
189,981

Commercial real estate
 
 

 
 

Owner-occupied
 
266,362

 
250,202

Non-owner occupied
 
564,826

 
484,902

Construction and development
 
 

 
 

Land and land development
 
68,833

 
67,219

Construction
 
24,731

 
33,412

Residential real estate
 
 

 
 

Non-jumbo
 
336,977

 
354,101

Jumbo
 
73,599

 
62,267

Home equity
 
80,910

 
84,028

Mortgage warehouse lines
 
39,140

 
30,757

Consumer
 
32,460

 
36,202

Other
 
12,899

 
13,238

Total loans, net of unearned fees
 
1,695,052

 
1,606,309

Less allowance for loan losses
 
13,047

 
12,565

Loans, net
 
$
1,682,005

 
$
1,593,744
Schedule Of Acquired Loans
The outstanding balance and the recorded investment of acquired loans included in the consolidated balance sheet at December 31, 2018 and 2017 are as follows:
 
 
Acquired Loans
 
 
2018
 
2017
Dollars in thousands
 
Purchased Credit Impaired
 
Purchased Performing
 
Total
 
Purchased Credit Impaired
 
Purchased Performing
 
Total
Outstanding balance
 
$
4,275

 
$
138,167

 
$
142,442

 
$
5,923

 
$
220,131

 
$
226,054

 
 
 
 
 
 
 
 
 
 
 
 
 
Recorded investment
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
—

 
$
3,934

 
$
3,934

 
$
9

 
$
25,125

 
$
25,134

Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied
 
—

 
16,133

 
16,133

 
689

 
21,893

 
22,582

Non-owner occupied
 
1,162

 
23,431

 
24,593

 
1,837

 
33,293

 
35,130

Construction and development
 
 
 
 
 
 
 
 
 
 
 
 
Land and land development
 
—

 
5,161

 
5,161

 
—

 
7,512

 
7,512

Construction
 
—

 
—

 
—

 
—

 
2,760

 
2,760

Residential real estate
 
 
 
 
 
 
 
 
 
 
 
 
Non-jumbo
 
1,374

 
77,894

 
79,268

 
1,485

 
109,570

 
111,055

Jumbo
 
975

 
2,577

 
3,552

 
999

 
3,400

 
4,399

Home equity
 
—

 
2,805

 
2,805

 
—

 
3,311

 
3,311

Consumer
 
—

 
4,630

 
4,630

 
—

 
11,229

 
11,229

Other
 
—

 
122

 
122

 
—

 
211

 
211

Total recorded investment
 
$
3,511

 
$
136,687

 
$
140,198

 
$
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 during 2018 and 2017:
Dollars in thousands
 
2018
 
2017
Accretable yield, January 1
 
$
745

 
$
290

Additions for First Century Bankshares, Inc. acquisition
 
—

 
661

Accretion
 
(115
)
 
(162
)
Reclassification of nonaccretable difference due to improvement in expected cash flows
 
—

 
(31
)
Other changes, net
 
2

 
(13
)
Accretable yield, December 31
 
$
632

 
$
745
Schedule Of Loan Maturities
The following presents loan maturities at December 31, 2018:
 
Within
 
After 1 but
 
After
Dollars in thousands
1 Year
 
within 5 Years
 
5 Years
Commercial
$
96,076

 
$
63,124

 
$
35,115

Commercial real estate
37,675

 
113,790

 
679,723

Construction and development
29,718

 
23,207

 
40,639

Residential real estate
22,176

 
50,982

 
418,328

Mortgage warehouse lines
39,140

 
—

 
—

Consumer
5,181

 
23,172

 
4,107

Other
1,229

 
2,302

 
9,368

 
$
231,195

 
$
276,577

 
$
1,187,280

Loans due after one year with:
 

 
 

 
 

Variable rates
 

 
$
546,499

 
 

Fixed rates
 

 
917,358

 
 

 
 

 
$
1,463,857

 
 
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, 2018 and 2017.
 
At December 31, 2018
 
Past Due
 
 
 
> 90 days and Accruing
Dollars in thousands
30-59 days
 
60-89 days
 
> 90 days
 
Total
 
Current
 
Commercial
$
254

 
$
51

 
$
483

 
$
788

 
$
193,527

 
$
—

Commercial real estate
 

 
 

 
 

 
 

 
 

 
 

Owner-occupied
—

 
—

 
612

 
612

 
265,750

 
—

Non-owner occupied
156

 
255

 
1,756

 
2,167

 
562,659

 
—

Construction and development
 

 
 

 
 

 
 

 
 

 
 

Land and land development
190

 
4

 
3,174

 
3,368

 
65,465

 
—

Construction
—

 
—

 
—

 
—

 
24,731

 
—

Residential mortgage
 

 
 

 
 

 
 

 
 

 
 

Non-jumbo
4,120

 
2,235

 
3,753

 
10,108

 
326,869

 
—

Jumbo
—

 
—

 
675

 
675

 
72,924

 
—

Home equity
754

 
261

 
181

 
1,196

 
79,714

 
—

Mortgage warehouse lines
—

 
—

 
—

 
—

 
39,140

 
—

Consumer
502

 
121

 
125

 
748

 
31,712

 
36

Other
31

 
—

 
—

 
31

 
12,868

 
—

Total
$
6,007

 
$
2,927

 
$
10,759

 
$
19,693

 
$
1,675,359

 
$
36

 
 
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
Nonaccrual loans:  The following table presents the nonaccrual loans included in the net balance of loans at December 31, 2018 and 2017.
Dollars in thousands
 
2018
 
2017
Commercial
 
$
935

 
$
696

Commercial real estate
 
 

 
 

Owner-occupied
 
1,028

 
726

Non-owner occupied
 
2,210

 
2,201

Construction and development
 
 

 
 

Land & land development
 
3,198

 
3,569

Construction
 
—

 
—

Residential mortgage
 
 

 
 

Non-jumbo
 
6,532

 
6,944

Jumbo
 
675

 
—

Home equity
 
299

 
712

Mortgage warehouse lines
 
—

 
—

Consumer
 
112

 
201

Total
 
$
14,989

 
$
15,049
Impaired Financing Receivables
The following tables present loans individually evaluated for impairment at December 31, 2018 and 2017.
 
December 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
$
1,019

 
$
1,253

 
$
—

 
$
321

 
$
16

Commercial real estate
 

 
 

 
 

 
 

 
 

Owner-occupied
8,600

 
8,605

 
—

 
7,730

 
318

Non-owner occupied
9,666

 
9,673

 
—

 
9,753

 
493

Construction and development
 

 
 

 
 

 
 

 
 

Land & land development
4,767

 
4,767

 
—

 
4,947

 
102

Construction
—

 
—

 
—

 
—

 
—

Residential real estate
 

 
 

 
 

 
 

 
 

Non-jumbo
3,279

 
3,284

 
—

 
3,401

 
180

Jumbo
4,132

 
4,130

 
—

 
3,517

 
166

Home equity
523

 
523

 
—

 
523

 
30

Mortgage warehouse lines
—

 
—

 
—

 
—

 
—

Consumer
9

 
10

 
—

 
13

 
1

Total without a related allowance
$
31,995

 
$
32,245

 
$
—

 
$
30,205

 
$
1,306

 
 
 
 
 
 
 
 
 
 
With a related allowance
 

 
 

 
 

 
 

 
 

Commercial
$
3,343

 
$
3,342

 
$
682

 
$
705

 
$
39

Commercial real estate
 

 
 

 
 

 
 
 
 

Owner-occupied
2,969

 
2,969

 
462

 
2,397

 
117

Non-owner occupied
189

 
191

 
9

 
226

 
16

Construction and development
 

 
 

 
 

 
 

 
 

Land & land development
1,057

 
1,057

 
298

 
1,073

 
56

Construction
—

 
—

 
—

 
—

 
—

Residential real estate
 

 
 

 
 

 
 

 
 

Non-jumbo
2,982

 
2,981

 
585

 
2,539

 
98

Jumbo
821

 
822

 
106

 
827

 
48

Home equity
—

 
—

 
—

 
—

 
—

Mortgage warehouse lines
—

 
—

 
—

 
—

 
—

Consumer
—

 
—

 
—

 
—

 
—

Total with a related allowance
$
11,361

 
$
11,362

 
$
2,142

 
$
7,767

 
$
374

 
 
 
 
 
 
 
 
 
 
Total
 

 
 

 
 

 
 

 
 

Commercial
$
31,610

 
$
31,857

 
$
1,451

 
$
27,152

 
$
1,157

Residential real estate
11,737

 
11,740

 
691

 
10,807

 
522

Consumer
9

 
10

 
—

 
13

 
1

Total
$
43,356

 
$
43,607

 
$
2,142

 
$
37,972

 
$
1,680


The above table 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
Troubled Debt Restructurings on Financing Receivables
All TDRs are evaluated individually for allowance for loan loss purposes.
 
2018
 
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
2

 
183

 
183

 
2

 
489

 
489

Construction and development
 
 
 
 
 
 
 
 
 
 
 
Land & land development
—

 
—

 
—

 
1

 
438

 
438

Residential real estate
 
 
 
 
 
 
 
 
 
 
 
Non-jumbo
8

 
899

 
899

 
4

 
642

 
642

Total
12

 
$
1,239

 
$
1,239

 
8

 
$
3,871

 
$
3,871
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. 
 
2018
 
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


 


 


 


Owner-occupied
—

 
—

 
1

 
2,291

Construction and development

 


 


 


Land & land development
—

 
—

 
1

 
437

Residential real estate


 


 


 


Non-jumbo
7

 
847

 
3

 
767

Total
9

 
$
1,004

 
5

 
$
3,495
Schedule of the Activity Regarding TDRs by Loan Type
The following table details the activity regarding TDRs by loan type during 2018 and the related allowance on TDRs.
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

 
—

 
183

 
899

 
—

 
—

 
—

 
—

 
—

 
1,239

Charge-offs
—

 
—

 
—

 
—

 
—

 
(55
)
 
—

 
—

 
—

 
—

 
—

 
(55
)
Net (paydowns) advances
(389
)
 
—

 
(296
)
 
(180
)
 
(13
)
 
(1,549
)
 
(115
)
 
—

 
—

 
(8
)
 
—

 
(2,550
)
Transfer into foreclosed properties
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Refinance out of TDR status
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Balance, December 31, 2018
$
2,654

 
$
—

 
$
273

 
$
9,365

 
$
5,404

 
$
4,490

 
$
4,278

 
$
523

 
$
—

 
$
10

 
$
—

 
$
26,997

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance related to troubled debt restructurings
$
298

 
$
—

 
$
9

 
$
270

 
$
8

 
$
189

 
$
105

 
$
—

 
$
—

 
$
—

 
$
—

 
$
879
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
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Pass
$
63,743

 
$
60,850

 
$
24,589

 
$
33,412

 
$
182,651

 
$
186,941

 
$
259,360

 
$
242,702

 
$
556,609

 
$
474,522

 
$
39,140

 
$
30,757

OLEM (Special Mention)
472

 
1,397

 
142

 
—

 
6,748

 
2,267

 
1,864

 
3,534

 
1,554

 
2,221

 
—

 
—

Substandard
4,618

 
4,972

 
—

 
—

 
4,916

 
773

 
5,138

 
3,966

 
6,663

 
8,159

 
—

 
—

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Loss
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
68,833

 
$
67,219

 
$
24,731

 
$
33,412

 
$
194,315

 
$
189,981

 
$
266,362

 
$
250,202

 
$
564,826

 
$
484,902

 
$
39,140

 
$
30,757
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
2018
 
2017
 
2018
 
2017
Residential real estate
 
 
 
 
 
 
 
Non-jumbo
$
330,445

 
$
347,183

 
$
6,532

 
$
6,918

Jumbo
72,924

 
62,267

 
675

 
—

Home Equity
80,611

 
83,316

 
299

 
712

Consumer
32,312

 
35,932

 
148

 
270

Other
12,899

 
13,238

 
—

 
—

Total
$
529,191

 
$
541,936

 
$
7,654

 
$
7,900
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
2018
 
2017
Balance, beginning
$
45,698

 
$
45,164

Additions
6,750

 
13,497

Amounts collected
(6,992
)
 
(11,802
)
Other changes, net
(1,557
)
 
(1,161
)
Balance, ending
$
43,899

 
$
45,698