Loans (Tables)

9 Months Ended

Sep. 30, 2015

Loans

Schedule of loans

	September 30, 2015			December 31, 2014
	(Dollars in thousands)
Loans held-for-investment:
Commercial	$	554,169		$	462,403
Real estate:
Commercial and residential		606,819			478,335
Land and construction		84,867			67,980
Home equity		74,624			61,644
Consumer		12,595			18,867
Loans		1,333,074			1,089,229
Deferred loan origination fees, net		(669	)		(586	)
Loans, net of deferred fees		1,332,405			1,088,643
Allowance for loan losses		(18,737	)		(18,379	)
Loans, net	$	1,313,668		$	1,070,264

Schedule of changes in allowance for loan losses

	Three Months Ended September 30, 2015
	Commercial			Real Estate		Consumer			Total
	(Dollars in thousands)
Balance, beginning of period	$	11,193		$	7,450	$	114		$	18,757
Charge-offs		(8	)		—		(9	)		(17	)
Recoveries		284			14		—			298
Net recoveries		276			14		(9	)		281
Provision (credit) for loan losses		(941	)		672		(32	)		(301	)
Balance, end of period	$	10,528		$	8,136	$	73		$	18,737

	Three Months Ended September 30, 2014
	Commercial			Real Estate			Consumer			Total
	(Dollars in thousands)
Balance, beginning of period	$	11,454		$	7,069		$	69		$	18,592
Charge-offs		(132	)		—			(25	)		(157	)
Recoveries		123			7			—			130
Net (charge-offs) recoveries		(9	)		7			(25	)		(27	)
Provision (credit) for loan losses		163			(205	)		18			(24	)
Balance, end of period	$	11,608		$	6,871		$	62		$	18,541

	Nine Months Ended September 30, 2015
	Commercial			Real Estate			Consumer			Total
	(Dollars in thousands)
Balance, beginning of period	$	11,187		$	7,070		$	122		$	18,379
Charge-offs		(229	)		(2	)		(9	)		(240	)
Recoveries		766			141			30			937
Net recoveries		537			139			21			697
Provision (credit) for loan losses		(1,196	)		927			(70	)		(339	)
Balance, end of period	$	10,528		$	8,136		$	73		$	18,737

	Nine Months Ended September 30, 2014
	Commercial			Real Estate		Consumer			Total
	(Dollars in thousands)
Balance, beginning of period	$	12,533		$	6,548	$	83		$	19,164
Charge-offs		(726	)		—		(25	)		(751	)
Recoveries		309			51		—			360
Net (charge-offs) recoveries		(417	)		51		(25	)		(391	)
Provision (credit) for loan losses		(508	)		272		4			(232	)
Balance, end of period	$	11,608		$	6,871	$	62		$	18,541

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

	September 30, 2015
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	133	$	—	$	—	$	133
Collectively evaluated for impairment		10,395		8,136		73		18,604
Total allowance balance	$	10,528	$	8,136	$	73	$	18,737
Loans:
Individually evaluated for impairment	$	1,804	$	3,878	$	4	$	5,686
Collectively evaluated for impairment		552,365		762,432		12,591		1,327,388
Total loan balance	$	554,169	$	766,310	$	12,595	$	1,333,074

	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

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

	September 30, 2015						December 31, 2014
	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	$	947	$	947	$	—	$	2,282	$	1,872	$	—
Real estate:
Commercial and residential		3,933		3,074		—		2,510		1,651		—
Land and construction		529		492		—		1,808		1,319		—
Home Equity		312		312		—		345		345		—
Consumer		4		4		—		6		6		—
Total with no related allowance recorded		5,725		4,829		—		6,951		5,193		—
With an allowance recorded:
Commercial		857		857	$	133		829		829		404
Total with an allowance recorded		857		857		133		829		829		404
Total	$	6,582	$	5,686	$	133	$	7,780	$	6,022	$	404

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

	Three Months Ended September 30, 2015
			Real Estate
	Commercial		Commercial and Residential		Land and Construction		Home Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	1,403	$	3,117	$	496	$	317	$	5	$	5,338
Interest income during impairment	$	—	$	—	$	—	$	—	$	—	$	—
Cash-basis interest earned	$	—	$	—	$	—	$	—	$	—	$	—

	Three Months Ended September 30, 2014
			Real Estate
	Commercial		Commercial and Residential		Land and Construction		Home Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	3,790	$	2,273	$	1,672	$	513	$	19	$	8,267
Interest income during impairment	$	—	$	—	$	—	$	—	$	—	$	—
Cash-basis interest earned	$	—	$	—	$	—	$	—	$	—	$	—

	Nine Months Ended September 30, 2015
			Real Estate
	Commercial		Commercial and Residential		Land and Construction		Home Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	1,605	$	3,031	$	819	$	327	$	5	$	5,787
Interest income during impairment	$	—	$	—	$	—	$	—	$	—	$	—
Cash-basis interest earned	$	—	$	—	$	—	$	—	$	—	$	—

	Nine Months Ended September 30, 2014
			Real Estate
	Commercial		Commercial and Residential		Land and Construction		Home Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	4,411	$	3,034	$	1,705	$	575	$	69	$	9,794
Interest income during impairment	$	56	$	—	$	—	$	—	$	—	$	56
Cash-basis interest earned	$	—	$	—	$	—	$	—	$	—	$	—

Schedule of nonperforming loans

	September 30,
					December 31, 2014
	2015		2014
	(Dollars in thousands)
Nonaccrual loans—held-for-investment	$	5,503	$	7,010	$	5,855
Restructured and loans over 90 days past due and still accruing		—		200		—
Total nonperforming loans	$	5,503	$	7,210	$	5,855
Other restructured loans	$	183	$	—	$	167
Impaired loans, excluding loans held-for-sale	$	5,686	$	7,210	$	6,022

Schedule of nonperforming loans by class

	September 30, 2015						December 31, 2014
	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	$	1,620	$	—	$	1,620	$	2,534		—	$	2,534
Real estate:										—
Commercial and residential		3,075		—		3,075		1,651		—		1,651
Land and construction		492		—		492		1,320		—		1,320
Home equity		312		—		312		344		—		344
Consumer		4		—		4		6		—		6
Total	$	5,503	$	—	$	5,503	$	5,855	$	—	$	5,855

Schedule of aging of past due loans by class of loans

	September 30, 2015
	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	$	4,201	$	466	$	373	$	5,040	$	549,129	$	554,169
Real estate:
Commercial and residential		—		—		—		—		606,819		606,819
Land and construction		—		—		2,551		2,551		82,316		84,867
Home equity		—		—		—		—		74,624		74,624
Consumer		—		—		—		—		12,595		12,595
Total	$	4,201	$	466	$	2,924	$	7,591	$	1,325,483	$	1,333,074

	December 31, 2014
	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

Summary of loan portfolio by loan type and credit quality classification

	September 30, 2015						December 31, 2014
	Nonclassified		Classified*		Total		Nonclassified		Classified*		Total
	(Dollars in thousands)
Commercial	$	543,879	$	10,290	$	554,169	$	455,767	$	6,636	$	462,403
Real estate:
Commercial and residential		601,671		5,148		606,819		472,061		6,274		478,335
Land and construction		84,375		492		84,867		66,660		1,320		67,980
Home equity		73,286		1,338		74,624		60,736		908		61,644
Consumer		12,279		316		12,595		18,518		349		18,867
Total	$	1,315,490	$	17,584	$	1,333,074	$	1,073,742	$	15,487	$	1,089,229

*           Classified loans in the table above include Small Business Administration ("SBA") guarantees.