Loans (Tables)

3 Months Ended

Mar. 31, 2019

Loans [Abstract]

Schedule of Loans Receivable

Loans consist of the following:

	March 31, 2019									December 31, 2018
							% of								% of
			All other				Gross				All other				Gross
(dollars in thousands)	PCI		loans**		Total		Loans		PCI		loans**		Total		Loans
Commercial real estate	$	1,750	$	889,415	$	891,165	65.37	%	$	1,785	$	876,231	$	878,016	65.19	%
Residential first mortgages		468		156,185		156,653	11.49	%		466		156,243		156,709	11.63	%
Residential rentals		886		123,632		124,518	9.13	%		897		123,401		124,298	9.23	%
Construction and land development		—		32,798		32,798	2.41	%		—		29,705		29,705	2.21	%
Home equity and second mortgages		123		36,623		36,746	2.70	%		72		35,489		35,561	2.64	%
Commercial loans		—		70,725		70,725	5.19	%		—		71,680		71,680	5.32	%
Consumer loans		—		851		851	0.06	%		—		751		751	0.06	%
Commercial equipment		—		49,720		49,720	3.65	%		—		50,202		50,202	3.73	%
Gross loans		3,227		1,359,949		1,363,176	100.00	%		3,220		1,343,702		1,346,922	100.00	%
Net deferred costs		—		1,261		1,261	0.09	%		—		1,183		1,183	0.09	%
Total loans, net of deferred costs	$	3,227	$	1,361,210	$	1,364,437			$	3,220	$	1,344,885	$	1,348,105
Less: allowance for loan losses		—		(10,846)		(10,846)	(0.80)	%		—		(10,976)		(10,976)	(0.81)	%
Net loans	$	3,227	$	1,350,364	$	1,353,591			$	3,220	$	1,333,909	$	1,337,129

**   All other loans include acquired Non-PCI pools at fair value.

Non-accrual loans

Non-accrual loans as of March 31, 2019 and December 31, 2018 were as follows:

	March 31, 2019
	Non-accrual			Non-accrual			Total		Total
	Delinquent		Number	Current		Number	Non-accrual		Number
(dollars in thousands)	Loans		of Loans	Loans		of Loans	Loans		of Loans
Commercial real estate	$	4,022	8	$	6,088	6	$	10,110	14
Residential first mortgages		149	2		1,217	4		1,366	6
Residential rentals		258	2		737	4		995	6
Home equity and second mortgages		193	3		—	—		193	3
Commercial loans		829	2		—	—		829	2
Commercial equipment		287	4		35	2		322	6
	$	5,738	21	$	8,077	16	$	13,815	37

	December 31, 2018
	Non-accrual			Non-accrual			Total		Total
	Delinquent		Number	Current		Number	Non-accrual		Number
(dollars in thousands)	Loans		of Loans	Loans		of Loans	Loans		of Loans
Commercial real estate	$	8,474	11	$	6,158	6	$	14,632	17
Residential first mortgages		146	1		1,228	4		1,374	5
Residential rentals		260	2		703	3		963	5
Home equity and second mortgages		147	2		—	—		147	2
Commercial loans		866	2		—	—		866	2
Commercial equipment		1,259	5		41	2		1,300	7
	$	11,152	23	$	8,130	15	$	19,282	38

Past Due Financing Receivables

Past due and PCI loans as of March 31, 2019 and December 31, 2018 were as follows:

	March 31, 2019
													Total
	31‑60		61‑89		90 or Greater		Total						Loan
(dollars in thousands)	Days		Days		Days		Past Due		PCI Loans		Current		Receivables
Commercial real estate	$	364	$	—	$	4,023	$	4,387	$	1,750	$	885,028	$	891,165
Residential first mortgages		—		—		150		150		468		156,035		156,653
Residential rentals		12		—		245		257		886		123,375		124,518
Construction and land dev.		—		—		—		—		—		32,798		32,798
Home equity and second mtg.		260		—		193		453		123		36,170		36,746
Commercial loans		90		—		829		919		—		69,806		70,725
Consumer loans		1		—		—		1		—		850		851
Commercial equipment		44		—		261		305		—		49,415		49,720
Total	$	771	$	—	$	5,701	$	6,472	$	3,227	$	1,353,477	$	1,363,176

	December 31, 2018
													Total
	31‑60		61‑89		90 or Greater		Total						Loan
(dollars in thousands)	Days		Days		Days		Past Due		PCI Loans		Current		Receivables
Commercial real estate	$	—	$	677	$	8,474	$	9,151	$	1,785	$	867,080	$	878,016
Residential first mortgages		—		66		146		212		466		156,031		156,709
Residential rentals		13		53		247		313		897		123,088		124,298
Construction and land dev.		—		—		—		—		—		29,705		29,705
Home equity and second mtg.		266		—		147		413		72		35,076		35,561
Commercial loans		—		—		866		866		—		70,814		71,680
Consumer loans		1		4		—		5		—		746		751
Commercial equipment		25		29		1,230		1,284		—		48,918		50,202
Total	$	305	$	829	$	11,110	$	12,244	$	3,220	$	1,331,458	$	1,346,922

Impaired Loans, Including TDRs

Impaired Loans and Troubled Debt Restructures (“TDRs”)

Impaired loans, including TDRs, at March 31, 2019 and 2018 and at December 31, 2018 were as follows:

	March 31, 2019
	Unpaid		Recorded		Recorded						Quarter		Quarter
	Contractual		Investment		Investment		Total				Average		Interest
	Principal		With No		With		Recorded		Related		Recorded		Income
(dollars in thousands)	Balance		Allowance		Allowance		Investment		Allowance		Investment		Recognized
Commercial real estate	$	22,320	$	20,019	$	2,274	$	22,293	$	208	$	22,373	$	184
Residential first mortgages		2,507		2,505		—		2,505		—		2,518		27
Residential rentals		1,773		1,768		—		1,768		—		1,779		21
Construction and land dev.		729		729		—		729		—		729		11
Home equity and second mtg.		257		250		—		250		—		250		2
Commercial loans		2,672		1,834		827		2,661		700		2,669		27
Commercial equipment		390		199		174		373		150		381		2
Total	$	30,648	$	27,304	$	3,275	$	30,579	$	1,058	$	30,699	$	274

	December 31, 2018
	Unpaid		Recorded		Recorded						YTD		YTD
	Contractual		Investment		Investment		Total				Average		Interest
	Principal		With No		With		Recorded		Related		Recorded		Income
(dollars in thousands)	Balance		Allowance		Allowance		Investment		Allowance		Investment		Recognized
Commercial real estate	$	27,835	$	24,515	$	3,025	$	27,540	$	326	$	27,833	$	1,275
Residential first mortgages		2,527		2,527		—		2,527		—		2,573		126
Residential rentals		1,745		1,745		—		1,745		—		1,792		85
Construction and land dev.		729		729		—		729		—		729		45
Home equity and second mtg.		294		288		—		288		—		291		13
Commercial loans		2,762		1,888		863		2,751		700		2,804		118
Consumer loans		1		—		1				1		1		—
Commercial equipment		1,315		1,121		178		1,299		153		1,354		31
Total	$	37,208	$	32,813	$	4,067	$	36,880	$	1,180	$	37,377	$	1,693

	March 31, 2018
	Unpaid		Recorded		Recorded						Quarter		Quarter
	Contractual		Investment		Investment		Total				Average		Interest
	Principal		With No		With		Recorded		Related		Recorded		Income
(dollars in thousands)	Balance		Allowance		Allowance		Investment		Allowance		Investment		Recognized
Commercial real estate	$	27,398	$	25,156	$	1,750	$	26,906	$	290	$	26,964	$	279
Residential first mortgages		2,435		1,916		454		2,370		2		2,403		23
Residential rentals		1,424		1,401		—		1,401		—		1,428		16
Construction and land dev.		729		—		729		729		210		729		10
Home equity and second mtg.		309		306		—		306		—		309		2
Commercial loans		3,008		1,889		1,061		2,950		419		2,950		20
Commercial equipment		1,333		1,023		301		1,324		239		1,341		12
Total	$	36,637	$	31,691	$	4,296	$	35,987	$	1,161	$	36,125	$	362

TDRs, Included in Impaired Loans Schedule

TDRs, included in the impaired loan schedules above, as of March 31, 2019 and December 31, 2018 were as follows:

	March 31, 2019			December 31, 2018
			Number			Number
(dollars in thousands)	Dollars		of Loans	Dollars		of Loans
Commercial real estate	$	5,590	7	$	5,612	7
Residential first mortgages		66	1		66	1
Residential rentals		215	1		216	1
Construction and land development		729	2		729	2
Commercial loans		—	—		53	1
Commercial equipment		78	2		29	1
Total TDRs	$	6,678	13	$	6,705	13
Less: TDRs included in non-accrual loans		(26)	(1)		(29)	(1)
Total accrual TDR loans	$	6,652	12	$	6,676	12

Allowance for Credit Losses on Financing Receivables

The following tables detail activity in the allowance for loan losses at and for the three months ended March 31, 2019 and 2018, respectively. An allocation of the allowance to one category of loans does not prevent the Company from using that allowance to absorb losses in a different category.

Three Months Ended	March 31, 2019
	Beginning								Ending
(dollars in thousands)	Balance		Charge-offs		Recoveries		Provisions		Balance
Commercial real estate	$	6,882		—		2		(142)		6,742
Residential first mortgages		755		—		—		(33)		722
Residential rentals		498		(53)		46		(29)		462
Construction and land development		310		—		—		(162)		148
Home equity and second mortgages		133		—		2		(3)		132
Commercial loans		1,482		—		5		(81)		1,406
Consumer loans		6		(4)		1		5		8
Commercial equipment		910		(685)		56		945		1,226
	$	10,976	$	(742)	$	112	$	500	$	10,846
Purchase Credit Impaired**	$	—	$	—	$	—	$	—	$	—

Three Months Ended	March 31, 2018
	Beginning								Ending
(dollars in thousands)	Balance		Charge-offs		Recoveries		Provisions		Balance
Commercial real estate	$	6,451	$	(236)	$	2	$	447	$	6,664
Residential first mortgages		1,144		(37)		—		(170)		937
Residential rentals		512		—		—		(53)		459
Construction and land development		462		—		—		20		482
Home equity and second mortgages		162		(7)		9		(46)		118
Commercial loans		1,013		—		—		32		1,045
Consumer loans		7		(1)		—		1		7
Commercial equipment		764		(299)		25		269		759
	$	10,515	$	(580)	$	36	$	500	$	10,471
Purchase Credit Impaired**	$	—	$	—	$	—	$	—	$	—

**There is no allowance for loan loss on the PCI portfolios. A more detailed rollforward schedule will be presented if an allowance is required.

The following tables detail loan receivable and allowance balances disaggregated on the basis of the Company’s impairment methodology at March 31, 2019 and 2018 and December 31, 2018.

	March 31, 2019								December 31, 2018								March 31, 2018
	Ending balance:		Ending balance:						Ending balance:		Ending balance:						Ending balance:		Ending balance:
	individually		collectively						individually		collectively						individually		collectively
	evaluated for		evaluated for		Purchase Credit				evaluated for		evaluated for		Purchase Credit				evaluated for		evaluated for		Purchase Credit
(dollars in thousands)	impairment		impairment		Impaired		Total		impairment		impairment		Impaired			Total	impairment		impairment		Impaired		Total
Loan Receivables:
Commercial real estate	$	22,293	$	867,122	$	1,750	$	891,165	$	27,540	$	848,691	$	1,785	$	878,016	$	26,906	$	789,133	$	1,537	$	817,576
Residential first mortgages		2,505		153,680		468		156,653		2,527		153,716		466		156,709		2,370		164,020		—		166,390
Residential rentals		1,768		121,864		886		124,518		1,745		121,656		897		124,298		1,401		125,869		1,756		129,026
Construction and land development		729		32,069		—		32,798		729		28,976		—		29,705		729		27,387		110		28,226
Home equity and second mortgages		250		36,373		123		36,746		288		35,201		72		35,561		306		38,707		468		39,481
Commercial loans		2,661		68,064		—		70,725		2,751		68,929		—		71,680		2,950		49,248		—		52,198
Consumer loans		—		851		—		851		1		750		—		751		1		852		—		853
Commercial equipment		373		49,347		—		49,720		1,299		48,903		—		50,202		1,324		44,581		—		45,905
	$	30,579	$	1,329,370	$	3,227	$	1,363,176	$	36,880	$	1,306,822	$	3,220	$	1,346,922	$	35,987	$	1,239,797	$	3,871	$	1,279,655
Allowance for loan losses:
Commercial real estate	$	208	$	6,534	$	—	$	6,742	$	326	$	6,556	$	—		6,882	$	290	$	6,374	$	—	$	6,664
Residential first mortgages		—		722		—		722		—		755		—		755		2		935		—		937
Residential rentals		—		462		—		462		—		498		—		498		—		459		—		459
Construction and land development		—		148		—		148		—		310		—		310		210		272		—		482
Home equity and second mortgages		—		132		—		132		—		133		—		133		—		118		—		118
Commercial loans		700		706		—		1,406		700		782		—		1,482		419		626		—		1,045
Consumer loans		—		8		—		8		1		5		—		6		1		6		—		7
Commercial equipment		150		1,076		—		1,226		153		757		—		910		239		520		—		759
	$	1,058	$	9,788	$	—	$	10,846	$	1,180	$	9,796	$	—	$	10,976	$	1,161	$	9,310	$	—	$	10,471

Credit Quality Indicators

Credit quality indicators as of March 31, 2019 and December 31, 2018 were as follows:

Credit Risk Profile by Internally Assigned Grade

	Commercial Real Estate				Construction and Land Dev.				Residential Rentals
(dollars in thousands)	3/31/2019		12/31/2018		3/31/2019		12/31/2018		3/31/2019		12/31/2018
Unrated	$	109,399	$	112,280	$	1,616	$	2,172	$	37,865	$	37,478
Pass		762,790		741,037		31,182		26,805		85,407		85,551
Special mention		—		—		—		—		—		—
Substandard		18,976		24,699		—		728		1,246		1,269
Doubtful		—		—		—		—		—		—
Loss		—		—		—		—		—		—
Total	$	891,165	$	878,016	$	32,798	$	29,705	$	124,518	$	124,298

	Commercial Loans				Commercial Equipment				Total Commercial Portfolios
(dollars in thousands)	3/31/2019		12/31/2018		3/31/2019		12/31/2018		3/31/2019		12/31/2018
Unrated	$	19,657	$	19,157	$	15,731	$	15,373	$	184,268	$	186,460
Pass		48,409		49,828		33,815		33,685		961,603		936,906
Special mention		—		—		—		—		—		—
Substandard		2,659		2,695		174		1,144		23,055		30,535
Doubtful		—		—		—		—		—		—
Loss		—		—		—		—		—		—
Total	$	70,725	$	71,680	$	49,720	$	50,202	$	1,168,926	$	1,153,901

	Non-Commercial Portfolios **				Total All Portfolios
(dollars in thousands)	3/31/2019		12/31/2018		3/31/2019		12/31/2018
Unrated	$	148,077	$	146,889	$	332,345	$	333,349
Pass		44,951		44,441		1,006,554		981,347
Special mention		—		—		—		—
Substandard		1,222		1,691		24,277		32,226
Doubtful		—		—		—		—
Loss		—		—		—		—
Total	$	194,250	$	193,021	$	1,363,176	$	1,346,922

**   Non-commercial portfolios are generally evaluated based on payment activity but may be risk graded if part of a larger commercial relationship or are credit impaired (e.g. non-accrual loans, TDRs).

Credit Risk Profile Based on Payment Activity

	Residential First Mortgages				Home Equity and Second Mtg.				Consumer Loans
(dollars in thousands)	3/31/2019		12/31/2018		3/31/2019		12/31/2018		3/31/2019		12/31/2018
Performing	$	156,504	$	156,563	$	36,552	$	35,414	$	851	$	751
Nonperforming		149		146		194		147		—		—
Total	$	156,653	$	156,709	$	36,746	$	35,561	$	851	$	751

Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Table

A summary of changes in the accretable yield for PCI loans for the three months ended March 31, 2019 and 2018 and the year ended December 31, 2018 follows:

	Three Months Ended				Year Ended
(dollars in thousands)	March 31, 2019		March 31, 2018		December 31, 2018
Accretable yield, beginning of period	$	734	$	—	$	—
Additions		—		517		517
Accretion		(54)		(58)		(230)
Reclassification from (to) nonaccretable difference		—		—		134
Other changes, net		—		—		313
Accretable yield, end of period	$	680	$	459	$	734

Summary Of Acquired And Non Acquired Loans Table

The following is a summary of acquired and non-acquired loans as of March 31, 2019 and December 31, 2018:

BY ACQUIRED AND NON-ACQUIRED	March 31, 2019		%		December 31, 2018		%
Acquired loans - performing	$	98,136	7.20	%	$	103,667	7.70	%
Acquired loans - purchase credit impaired ("PCI")		3,227	0.24	%		3,220	0.24	%
Total acquired loans		101,363	7.44	%		106,887	7.94	%
Non-acquired loans**		1,261,813	92.56	%		1,240,035	92.06	%
Gross loans		1,363,176				1,346,922
Net deferred costs (fees)		1,261	0.09	%		1,183	0.09	%
Total loans, net of deferred costs	$	1,364,437			$	1,348,105

**Non-acquired loans include loans transferred from acquired pools following release of acquisition accounting FMV adjustments.