Loans (Tables)

9 Months Ended

Sep. 30, 2013

Loans

Schedule of loans by primary loan portfolio segment

(in thousands)	September 30, 2013		December 31, 2012
Commercial and industrial	$	500,478	$	426,930
Construction and development	135,786		131,253
Real estate mortgage	1,038,864		989,631
Consumer	34,130		36,780
Total loans	$	1,709,258	$	1,584,594

Schedule of the balance in the recorded investment in loans and allowance for loan losses by portfolio segment and based on impairment method

	Type of loan
	Commercial		Construction		Real estate
(in thousands)	and industrial		and development		mortgage		Consumer		Total
September 30, 2013
Loans	$	500,478	$	135,786	$	1,038,864	$	34,130	$	1,709,258
Loans individually evaluated for impairment	$	8,461	$	9,870	$	10,450	$	88	$	28,869
Loans collectively evaluated for impairment	$	491,384	$	124,647	$	1,027,906	$	34,021	$	1,677,958
Loans acquired with deteriorated credit quality	$	633	$	1,269	$	508	$	21	$	2,431

	Commercial			Construction			Real estate
	and industrial			and development			mortgage			Consumer			Unallocated			Total
Allowance for loan losses
At December 31, 2012	$	5,949		$	4,536		$	14,288		$	362		$	6,746		$	31,881
Provision	2,598			3,838			5,042			243			(6,746		)	4,975
Charge-offs	(257		)	(6,440		)	(1,817		)	(519		)	—			(9,033		)
Recoveries	434			164			153			416			—			1,167
At September 30, 2013	$	8,724		$	2,098		$	17,666		$	502		$	—		$	28,990
Allowance for loans individually evaluated for impairment	$	682		$	148		$	744		$	86					$	1,660
Allowance for loans collectively evaluated for impairment	$	8,042		$	1,950		$	16,922		$	416		$	—		$	27,330
Allowance for loans acquired with deteriorated credit quality	$	—		$	—		$	—		$	—		$	—		$	—

	Type of loan
	Commercial		Construction		Real estate
(in thousands)	and industrial		and development		mortgage		Consumer		Total
December 31, 2012
Loans	$	426,930	$	131,253	$	989,631	$	36,780	$	1,584,594
Loans individually evaluated for impairment	$	8,667	$	10,863	$	9,795	$	4	$	29,329
Loans collectively evaluated for impairment	$	418,263	$	120,390	$	979,836	$	36,776	$	1,555,265

	Commercial			Construction			Real estate
	and industrial			and development			mortgage			Consumer			Unallocated			Total
Allowance for loan losses
At December 31, 2011	$	7,364		$	3,546		$	11,182		$	540		$	7,113		$	29,745
Provision	3,024			2,716			6,308			(181		)	(367		)	11,500
Charge-offs	(4,523		)	(1,726		)	(3,451		)	(798		)	—			(10,498		)
Recoveries	84			—			249			801			—			1,134
At December 31, 2012	$	5,949		$	4,536		$	14,288		$	362		$	6,746		$	31,881
Allowance for loans individually evaluated for impairment	$	156		$	2,898		$	563		$	—					$	3,617
Allowance for loans collectively evaluated for impairment	$	5,793		$	1,638		$	13,725		$	362		$	6,746		$	28,264

Schedule of the changes in accretable discount related to credit impaired acquired loans

(in thousands)
Balance at December 31, 2012	$	—
Additions due to Oldham acquisition	174
Accretion	(22		)
Reclassifications from (to) non-accretable difference	—
Disposals	—
Balance at September 30, 2013	$	152

Schedule of loans individually evaluated for impairment

			Unpaid				Average
	Recorded		principal		Related		recorded
(in thousands)	investment		balance		allowance		investment
September 30, 2013
Loans with no related allowance recorded
Commercial and industrial	$	1,246	$	1,889	$	—	$	5,416
Construction and development	8,576		10,288		—		2,316
Real estate mortgage	5,878		7,236		—		6,016
Consumer	2		41		—		3
Subtotal	15,702		19,454		—		13,751
Loans with an allowance recorded
Commercial and industrial	$	7,215	$	7,215	$	682	$	3,070
Construction and development	1,294		1,919		148		9,265
Real estate mortgage	4,572		5,539		744		3,695
Consumer	86		86		86		22
Subtotal	13,167		14,759		1,660		16,052
Total
Commercial and industrial	$	8,461	$	9,104	$	682	$	8,486
Construction and development	9,870		12,207		148		11,581
Real estate mortgage	10,450		12,775		744		9,711
Consumer	88		127		86		25
Total	$	28,869	$	34,213	$	1,660	$	29,803

			Unpaid				Average
	Recorded		principal		Related		recorded
(in thousands)	investment		balance		allowance		investment
December 31, 2012
Loans with no related allowance recorded
Commercial and industrial	$	6,735	$	7,591	$	—	$	6,226
Construction and development	352		2,187		—		2,097
Real estate mortgage	6,996		7,752		—		5,397
Consumer	4		25		—		21
Subtotal	14,087		17,555		—		13,741
Loans with an allowance recorded
Commercial and industrial	1,932		5,103		156		3,294
Construction and development	10,511		11,135		2,898		5,929
Real estate mortgage	2,799		2,948		563		6,145
Subtotal	15,242		19,186		3,617		15,368
Total
Commercial and industrial	$	8,667	$	12,694	$	156	$	9,520
Construction and development	10,863		13,322		2,898		8,026
Real estate mortgage	9,795		10,700		563		11,542
Consumer	4		25		—		21
Total	$	29,329	$	36,741	$	3,617	$	29,109

Schedule of recorded investment in non-accrual loans

(in thousands)	September 30, 2013		December 31, 2012
Commercial and industrial	$	456	$	1,554
Construction and development	9,870		10,863
Real estate mortgage	9,956		5,939
Consumer	2		4
Total	$	20,284	$	18,360

Schedule of the recorded investment in loans modified and classified as TDRs

		Pre-modification		Post-modification
	Number of	outstanding recorded		outstanding recorded
(dollars in thousands)	contracts	investment		investment
September 30, 2013
Commercial and industrial	1	$	789	$	789
Consumer	1	86		86
Total	2	$	875	$	875

September 30, 2012
Commercial and industrial	3	$	5,752	$	5,752
Real estate mortgage	2	505		505
Total	5	$	6,257	$	6,257

Schedule of the recorded investment in loans accounted for as TDR that were restructured and experienced a payment default

	Number of
(dollars in thousands)	Contracts	Recorded Investment
September 30, 2013
Real estate mortgage	2	$	2,426
Total	2	$	2,426
September 30, 2012
Commercial and industrial	1	$	619
Real estate mortgage	2	2,034
Total	3	$	2,653

Schedule of aging of the recorded investment in past due loans

					Greater
					than								Recorded
					90 days								investment
					past due								> 90 days
	30-59 days		60-89 days		(includes		Total				Total		and
(in thousands)	past due		past due		non-accrual)		past due		Current		loans		accruing
September 30, 2013
Commercial and industrial	$	42	$	160	$	1,144	$	1,346	$	499,132	$	500,478	$	688
Construction and development	845		—		9,870		10,715		125,071		135,786		—
Real estate mortgage	3,734		830		10,883		15,447		1,023,417		1,038,864		927
Consumer	257		86		2		345		33,785		34,130		—
Total	$	4,878	$	1,076	$	21,899	$	27,853	$	1,681,405	$	1,709,258	$	1,615
December 31, 2012
Commercial and industrial	$	212	$	42	$	1,554	$	1,808	$	425,122	$	426,930	$	—
Construction and development	—		4,284		10,862		15,146		116,107		131,253		—
Real estate mortgage	3,771		1,952		6,424		12,147		977,484		989,631		485
Consumer	79		—		238		317		36,463		36,780		234
Total	$	4,062	$	6,278	$	19,078	$	29,418	$	1,555,176	$	1,584,594	$	719

Schedule of credit risk profile by internally assigned grade

Credit risk profile by internally assigned grade

(in thousands)	Commercial and industrial		Construction and development		Real estate mortgage		Consumer		Total
September 30, 2013
Grade
Pass	$	477,981	$	109,223	$	1,006,353	$	33,956	$	1,627,513
Special mention	12,983		7,091		17,916		86		38,076
Substandard	365		9,602		3,218		—		13,185
Substandard non-performing	9,149		9,870		11,377		88		30,484
Doubtful	—		—		—		—		—
Total	$	500,478	$	135,786	$	1,038,864	$	34,130	$	1,709,258
December 31, 2012
Grade
Pass	$	404,045	$	113,559	$	925,674	$	36,542	$	1,479,820
Special mention	11,097		6,831		26,770		—		44,698
Substandard	4,482		—		26,901		—		31,383
Substandard non-performing	7,306		10,863		10,286		238		28,693
Doubtful	—		—		—		—		—
Total	$	426,930	$	131,253	$	989,631	$	36,780	$	1,584,594