Loans (Tables)

3 Months Ended

Mar. 31, 2016

Loans

Schedule of loans

	March 31, 2016			December 31, 2015
	(Dollars in thousands)
Loans held-for-investment:
Commercial	$	592,128		$	556,522
Real estate:
Commercial and residential		616,821			625,665
Land and construction		95,547			84,428
Home equity		74,993			76,833
Consumer		16,476			16,010
Loans		1,395,965			1,359,458
Deferred loan origination fees, net		(701	)		(742	)
Loans, net of deferred fees		1,395,264			1,358,716
Allowance for loan losses		(19,458	)		(18,926	)
Loans, net	$	1,375,806		$	1,339,790

Schedule of changes in allowance for loan losses

	Three Months Ended March 31, 2016
	Commercial			Real Estate			Consumer		Total
	(Dollars in thousands)
Balance, beginning of period	$	10,748		$	8,076		$	102	$	18,926
Charge-offs		(117	)		—			—		(117	)
Recoveries		32			216			—		248
Net (charge-offs) recoveries		(85	)		216			—		131
Provision (credit) for loan losses		616			(224	)		9		401
Balance, end of period	$	11,279		$	8,068		$	111	$	19,458

	Three Months Ended March 31, 2015
	Commercial			Real Estate			Consumer		Total
	(Dollars in thousands)
Balance, beginning of period	$	11,187		$	7,070		$	122	$	18,379
Charge-offs		(212	)		(2	)		—		(214	)
Recoveries		436			13			—		449
Net recoveries		224			11			—		235
Provision (credit) for loan losses		(555	)		473			22		(60	)
Balance, end of period	$	10,856		$	7,554		$	144	$	18,554

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

	March 31, 2016
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	2	$	111	$	—	$	113
Collectively evaluated for impairment		11,277		7,957		111		19,345
Acquired with deterioriated credit quality		—		—		—		—
Total allowance balance	$	11,279	$	8,068	$	111	$	19,458
Loans:
Individually evaluated for impairment	$	190	$	3,891	$	3	$	4,084
Collectively evaluated for impairment		591,693		783,470		16,473		1,391,636
Acquired with deterioriated credit quality		245		—		—		245
Total loan balance	$	592,128	$	787,361	$	16,476	$	1,395,965

	December 31, 2015
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	174	$	112	$	—	$	286
Collectively evaluated for impairment		10,574		7,964		102		18,640
Acquired with deterioriated credit quality		—		—		—		—
Total allowance balance	$	10,748	$	8,076	$	102	$	18,926
Loans:
Individually evaluated for impairment	$	2,014	$	4,272	$	4	$	6,290
Collectively evaluated for impairment		554,271		782,654		16,006		1,352,931
Acquired with deterioriated credit quality		237		—		—		237
Total loan balance	$	556,522	$	786,926	$	16,010	$	1,359,458

Schedule of carrying amount of purchased credit impaired loans

	March 31, 2016		December 31, 2015
	(Dollars in thousands)
Commercial	$	820	$	876
Outstanding balance	$	820	$	876
Carrying amount, net of discount of $575,000 and $639,000 at March 31, 2016 and December 31, 2015, respectively	$	245	$	237

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

	March 31, 2016						December 31, 2015
	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	$	290	$	290	$	—	$	745	$	745	$	—
Real estate:
Commercial and residential		3,769		2,910		—		3,851		2,992		—
Land and construction		231		213		—		237		219		—
Home Equity		296		296		—		302		302		—
Consumer		3		3		—		4		4		—
Total with no related allowance recorded		4,589		3,712		—		5,139		4,262		—
With an allowance recorded:
Commercial		145		145		2		1,506		1,506		174
Real estate:
Home Equity		472		472		111		759		759		112
Total with an allowance recorded		617		617		113		2,265		2,265		286
Total	$	5,206	$	4,329	$	113	$	7,404	$	6,527	$	286

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

	Three Months Ended March 31, 2016
			Real Estate
	Commercial		Commercial and Residential		Land and Construction		Home Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	1,343	$	2,951	$	216	$	914	$	4	$	5,428
Interest income during impairment	$	—	$	—	$	—	$	—	$	—	$	—
Cash-basis interest earned	$	—	$	—	$	—	$	—	$	—	$	—

	Three Months Ended March 31, 2015
			Real Estate
	Commercial		Commercial and Residential		Land and Construction		Home Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	1,907	$	2,901	$	1,305	$	341	$	5	$	6,459
Interest income during impairment	$	—	$	—	$	—	$	—	$	—	$	—
Cash-basis interest earned	$	—	$	—	$	—	$	—	$	—	$	—

Schedule of nonperforming loans

	March 31,
					December 31, 2015
	2016		2015
	(Dollars in thousands)
Nonaccrual loans—held-for-investment	$	4,184	$	6,733	$	4,716
Restructured and loans over 90 days past due and still accruing		—		—		1,662
Total nonperforming loans		4,184		6,733		6,378
Other restructured loans		145		163		149
Impaired loans, excluding loans held-for-sale	$	4,329	$	6,896	$	6,527

Schedule of nonperforming loans by class

	March 31, 2016						December 31, 2015
	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	$	290	$	—	$	290	$	724	$	1,378	$	2,102
Real estate:
Commercial and residential		2,910		—		2,910		2,992		—		2,992
Land and construction		213		—		213		219		—		219
Home equity		768		—		768		777		284		1,061
Consumer		3		—		3		4		—		4
Total	$	4,184	$	—	$	4,184	$	4,716	$	1,662	$	6,378

Schedule of aging of past due loans by class of loans

	March 31, 2016
	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	$	2,906	$	796	$	—	$	3,702	$	588,426	$	592,128
Real estate:
Commercial and residential		—		889		—		889		615,932		616,821
Land and construction		—		—		213		213		95,334		95,547
Home equity		1		295		—		296		74,697		74,993
Consumer		—		—		—		—		16,476		16,476
Total	$	2,907	$	1,980	$	213	$	5,100	$	1,390,865	$	1,395,965

	December 31, 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	$	3,285	$	262	$	1,704	$	5,251	$	551,271	$	556,522
Real estate:
Commercial and residential		—		—		—		—		625,665		625,665
Land and construction		219		—		—		219		84,209		84,428
Home equity		—		—		284		284		76,549		76,833
Consumer		—		—		—		—		16,010		16,010
Total	$	3,504	$	262	$	1,988	$	5,754	$	1,353,704	$	1,359,458

Summary of loan portfolio by loan type and credit quality classification

	March 31, 2016						December 31, 2015
	Nonclassified		Classified*		Total		Nonclassified		Classified*		Total
	(Dollars in thousands)
Commercial	$	580,826	$	11,302	$	592,128	$	547,536	$	8,986	$	556,522
Real estate:
Commercial and residential		608,771		8,050		616,821		617,865		7,800		625,665
Land and construction		95,334		213		95,547		84,209		219		84,428
Home equity		73,889		1,104		74,993		75,511		1,322		76,833
Consumer		16,183		293		16,476		15,705		305		16,010
Total	$	1,375,003	$	20,962	$	1,395,965	$	1,340,826	$	18,632	$	1,359,458

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