Loans and Loan Servicing (Tables)

12 Months Ended

Dec. 31, 2014

Loans and Loan Servicing

Schedule of loans

	2014			2013
	(Dollars in thousands)
Loans held-for-investment:
Commercial	$	462,403		$	393,074
Real estate:
Commercial and residential		478,335			423,288
Land and construction		67,980			31,443
Home equity		61,644			51,815
Consumer		18,867			15,677
Loans		1,089,229			915,297
Deferred loan fees, net		(586	)		(384	)
Loans, net of deferred fees		1,088,643			914,913
Allowance for loan losses		(18,379	)		(19,164	)
Loans, net	$	1,070,264		$	895,749

Schedule of changes in allowance for loan losses

	For the Year Ended December 31, 2014
	Commercial			Real Estate			Consumer			Total
	(Dollars in thousands)
Balance, beginning of year	$	12,533		$	6,548		$	83		$	19,164
Charge-offs		(815	)		(87	)		(25	)		(927	)
Recoveries		418			62			—			480
Net charge-offs		(397	)		(25	)		(25	)		(447	)
Provision (credit) for loan losses		(949	)		547			64			(338	)
Balance, end of year	$	11,187		$	7,070		$	122		$	18,379

	For the Year Ended December 31, 2013
	Commercial			Real Estate			Consumer			Total
	(Dollars in thousands)
Balance, beginning of year	$	12,866		$	6,034		$	127		$	19,027
Charge-offs		(1,676	)		(276	)		—			(1,952	)
Recoveries		2,621			283			1			2,905
Net recoveries		945			7			1			953
Provision (credit) for loan losses		(1,278	)		507			(45	)		(816	)
Balance, end of year	$	12,533		$	6,548		$	83		$	19,164

	For the Year Ended December 31, 2012
	Commercial			Real Estate			Consumer			Total
	(Dollars in thousands)
Balance, beginning of year	$	13,215		$	7,338		$	147		$	20,700
Charge-offs		(3,935	)		(1,528	)		—			(5,463	)
Recoveries		776			230			—			1,006
Net charge-offs		(3,159	)		(1,298	)		—			(4,457	)
Provision (credit) for loan losses		2,810			(6	)		(20	)		2,784
Balance, end of year	$	12,866		$	6,034		$	127		$	19,027

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

	December 31, 2014
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	404	$	—	$	—	$	404
Collectively evaluated for impairment		10,783		7,070		122		17,975
Total allowance balance	$	11,187	$	7,070	$	122	$	18,379
Loans:
Individually evaluated for impairment	$	2,701	$	3,315	$	6	$	6,022
Collectively evaluated for impairment		459,702		604,644		18,861		1,083,207
Total loan balance	$	462,403	$	607,959	$	18,867	$	1,089,229

	December 31, 2013
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	1,694	$	741	$	21	$	2,456
Collectively evaluated for impairment		10,839		5,807		62		16,708
Total allowance balance	$	12,533	$	6,548	$	83	$	19,164
Loans:
Individually evaluated for impairment	$	4,906	$	6,790	$	122	$	11,818
Collectively evaluated for impairment		388,168		499,756		15,555		903,479
Total loan balance	$	393,074	$	506,546	$	15,677	$	915,297

Schedule of loans held-for-investment individually evaluated for impairment by class of loans

	December 31, 2014						December 31, 2013
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
	(Dollars in thousands)
With no related allowance recorded:
Commercial	$	2,282	$	1,872	$	—	$	1,999	$	1,915	$	—
Real estate:
Commercial and residential		2,510		1,651		—		2,831		2,831		—
Land and construction		1,808		1,319		—		1,761		1,761		—
Home Equity		345		345		—		377		377		—
Consumer		6		6		—		—		—		—
Total with no related allowance recorded		6,951		5,193		—		6,968		6,884		—
With an allowance recorded:
Commercial		829		829		404		3,225		2,991		1,694
Real estate:
Commercial and residential		—		—		—		1,531		1,531		451
Land and construction		—		—		—		—		—		—
Home Equity		—		—		—		290		290		290
Consumer		—		—		—		122		122		21
Total with an allowance recorded		829		829		404		5,168		4,934		2,456
Total	$	7,780	$	6,022	$	404	$	12,136	$	11,818	$	2,456

Schedule of average impaired loans with interest recognized and cash-basis interest earned on impaired loans

	For the Year Ended December 31, 2014
			Real Estate
	Commercial		Commercial and Residential		Land and Construction		Home Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	4,069	$	2,758	$	1,628	$	529	$	56	$	9,040
Interest income during impairment	$	56	$	—	$	—	$	—	$	—	$	56
Cash-basis interest earned	$	—	$	—	$	—	$	—	$	—	$	—

	For the Year Ended December 31, 2013
			Real Estate
	Commercial		Commercial and Residential		Land and Construction		Home Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	6,855	$	4,921	$	2,028	$	2,064	$	135	$	16,003
Interest income during impairment	$	—	$	—	$	—	$	—	$	—	$	—
Cash-basis interest earned	$	—	$	—	$	—	$	—	$	—	$	—

Schedule of nonperforming loans

	2014		2013
	(Dollars in thousands)
Nonaccrual loans — held-for-investment	$	5,855	$	11,326
Restructured and loans over 90 days past due and still accruing		—		492
Total nonperforming loans	$	5,855	$	11,818
Other restructured loans	$	167	$	—
Impaired loans, excluding loans held-for-sale	$	6,022	$	11,818

Schedule of nonperforming loans by class

	2014						2013
	Nonaccrual		Restructured and Loans over 90 Days Past Due and Still Accruing		Total		Nonaccrual		Restructured and Loans over 90 Days Past Due and Still Accruing		Total
	(Dollars in thousands)
Commercial	$	2,534	$	—	$	2,534	$	4,414	$	492	$	4,906
Real estate:				—
Commercial and residential		1,651		—		1,651		4,363		—		4,363
Land and construction		1,320		—		1,320		1,761		—		1,761
Home equity		344		—		344		666		—		666
Consumer		6		—		6		122		—		122
Total	$	5,855	$	—	$	5,855	$	11,326	$	492	$	11,818

Schedule of aging of past due loans by class of loans

        The following table presents the aging of past due loans as of December 31, 2014 by class of loans:

	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans Not Past Due		Total
	(Dollars in thousands)
Commercial	$	3,002	$	195	$	1,978	$	5,175	$	457,228	$	462,403
Real estate:
Commercial and residential		—		—		1,065		1,065		477,270		478,335
Land and construction		—		—		—		—		67,980		67,980
Home equity		—		—		—		—		61,644		61,644
Consumer		—		—		—		—		18,867		18,867
Total	$	3,002	$	195	$	3,043	$	6,240	$	1,082,989	$	1,089,229

        The following table presents the aging of past due loans as of December 31, 2013 by class of loans:

	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans Not Past Due		Total
	(Dollars in thousands)
Commercial	$	3,314	$	428	$	2,865	$	6,607	$	386,467	$	393,074
Real estate:
Commercial and residential		1,559		—		1,065		2,624		420,664		423,288
Land and construction		—		—		—		—		31,443		31,443
Home equity		28		—		290		318		51,497		51,815
Consumer		—		—		89		89		15,588		15,677
Total	$	4,901	$	428	$	4,309	$	9,638	$	905,659	$	915,297

Summary of loan portfolio by loan type and credit quality classification

	December 31, 2014						December 31, 2013
	Nonclassified		Classified		Total		Nonclassified		Classified		Total
	(Dollars in thousands)
Commercial	$	455,767	$	6,636	$	462,403	$	380,806	$	12,268	$	393,074
Real estate:
Commercial and residential		472,061		6,274		478,335		416,992		6,296		423,288
Land and construction		66,660		1,320		67,980		29,682		1,761		31,443
Home equity		60,736		908		61,644		48,818		2,997		51,815
Consumer		18,518		349		18,867		15,336		341		15,677
Total	$	1,073,742	$	15,487	$	1,089,229	$	891,634	$	23,663	$	915,297

Schedule of loans by class modified as troubled debt restructurings

	During the Year Ended December 31, 2013
Troubled Debt Restructurings:	Number of Contracts		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
	(Dollars in thousands)
Commercial		1	$	211	$	211
Real Estate-Commercial and residential		1		1,531		1,531
Total		2	$	1,742	$	1,742

Schedule of activity for loan servicing rights

	2014			2013			2012
	(Dollars in thousands)
Balance, beginning of year	$	525		$	709		$	792
Additions		319			106			184
Amortization		(279	)		(290	)		(267	)
Balance, end of year	$	565		$	525		$	709

Schedule of activity for IO strip receivables

	2014			2013			2012
	(Dollars in thousands)
Balance, beginning of year	$	1,647		$	1,786		$	2,094
Unrealized loss		(166	)		(139	)		(308	)
Balance, end of year	$	1,481		$	1,647		$	1,786