Loans (Tables)

12 Months Ended

Dec. 31, 2016

Loans

Schedule of loans

	2016		2015
	(Dollars in thousands)
Loans held-for-investment:
Commercial	$	604,331	$	556,522
Real estate:
CRE		662,228		625,665
Land and construction		81,002		84,428
Home equity		82,459		76,833
Residential mortgages		52,887		—
Consumer		20,460		16,010
Loans		1,503,367		1,359,458
Deferred loan fees, net		(760)		(742)
Loans, net of deferred fees		1,502,607		1,358,716
Allowance for loan losses		(19,089)		(18,926)
Loans, net	$	1,483,518	$	1,339,790

Schedule of changes in allowance for loan losses

	Year Ended December 31, 2016
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Beginning of year balance	$	10,748	$	8,076	$	102	$	18,926
Charge-offs		(1,966)		—		(41)		(2,007)
Recoveries		365		568		—		933
Net (charge-offs) recoveries		(1,601)		568		(41)		(1,074)
Provision (credit) for loan losses		1,509		(317)		45		1,237
End of year balance	$	10,656	$	8,327	$	106	$	19,089

	Year Ended December 31, 2015
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Beginning of year balance	$	11,187	$	7,070	$	122	$	18,379
Charge-offs		(527)		(2)		(9)		(538)
Recoveries		877		146		30		1,053
Net recoveries		350		144		21		515
Provision (credit) for loan losses		(789)		862		(41)		32
End of year balance	$	10,748	$	8,076	$	102	$	18,926

	Year Ended December 31, 2014
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Beginning of year balance	$	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)
End of year balance	$	11,187	$	7,070	$	122	$	18,379

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

	December 31, 2016
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	329	$	—	$	—	$	329
Collectively evaluated for impairment		10,327		8,327		106		18,760
Acquired with deterioriated credit quality		—		—		—		—
Total allowance balance	$	10,656	$	8,327	$	106	$	19,089
Loans:
Individually evaluated for impairment	$	2,057	$	885	$	3	$	2,945
Collectively evaluated for impairment		602,029		877,691		20,457		1,500,177
Acquired with deterioriated credit quality		245		—		—		245
Total loan balance	$	604,331	$	878,576	$	20,460	$	1,503,367

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

	December 31, 2016						December 31, 2015
					Allowance						Allowance
	Unpaid				for Loan		Unpaid				for Loan
	Principal		Recorded		Losses		Principal		Recorded		Losses
	Balance		Investment		Allocated		Balance		Investment		Allocated
	(Dollars in thousands)
With no related allowance recorded:
Commercial	$	1,808	$	1,808	$	—	$	745	$	745	$	—
Real estate:
Commercial		1,278		419		—		3,851		2,992		—
Land and construction		218		199		—		237		219		—
Home Equity		267		267		—		302		302		—
Consumer		3		3		—		4		4		—
Total with no related allowance recorded		3,574		2,696		—		5,139		4,262		—
With an allowance recorded:
Commercial		494		494		329		1,506		1,506		174
Real estate:
Home Equity		—		—		—		759		759		112
Total with an allowance recorded		494		494		329		2,265		2,265		286
Total	$	4,068	$	3,190	$	329	$	7,404	$	6,527	$	286

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

	Year Ended December 31, 2016
			Real Estate
					Land and		Home
	Commercial		CRE		Construction		Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	1,822	$	1,922	$	208	$	625	$	3	$	4,580
Interest income during impairment	$	—	$	—	$	—	$	—	$	—	$	—
Cash-basis interest earned	$	—	$	—	$	—	$	—	$	—	$	—

	Year Ended December 31, 2015
			Real Estate
					Land and		Home
	Commercial		CRE		Construction		Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	1,774	$	3,006	$	764	$	475	$	5	$	6,024
Interest income during impairment	$	14	$	—	$	—	$	2	$	—	$	16
Cash-basis interest earned	$	—	$	—	$	—	$	—	$	—	$	—

Schedule of nonperforming loans

	2016		2015
	(Dollars in thousands)
Nonaccrual loans - held-for-investment	$	3,059	$	4,716
Restructured and loans over 90 days past due and still accruing		—		1,662
Total nonperforming loans		3,059		6,378
Other restructured loans		131		149
Total impaired loans	$	3,190	$	6,527

Schedule of nonperforming loans by class

	2016						2015
			Restructured and						Restructured and
			Loans over 90 Days						Loans over 90 Days
			Past Due and						Past Due and
	Nonaccrual		Still Accruing		Total		Nonaccrual		Still Accruing		Total
	(Dollars in thousands)
Commercial	$	2,171	$	—	$	2,171	$	724	$	1,378	$	2,102
Real estate:										—
CRE		419		—		419		2,992		—		2,992
Land and construction		199		—		199		219		—		219
Home equity		267		—		267		777		284		1,061
Consumer		3		—		3		4		—		4
Total	$	3,059	$	—	$	3,059	$	4,716	$	1,662	$	6,378

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, 2016 by class of loans:

	30 - 59		60 - 89		90 Days or
	Days		Days		Greater		Total		Loans Not
	Past Due		Past Due		Past Due		Past Due		Past Due		Total
	(Dollars in thousands)
Commercial	$	3,998	$	857	$	2,036	$	6,891	$	597,440	$	604,331
Real estate:
CRE		632		—		—		632		661,596		662,228
Land and construction		—		—		199		199		80,803		81,002
Home equity		—		267		—		267		82,192		82,459
Residential mortgages		—		—		—		—		52,887		52,887
Consumer		—		—		—		—		20,460		20,460
Total	$	4,630	$	1,124	$	2,235	$	7,989	$	1,495,378	$	1,503,367

The following table presents the aging of past due loans as of December 31, 2015 by class of loans:

	30 - 59		60 - 89		90 Days or
	Days		Days		Greater		Total		Loans Not
	Past Due		Past Due		Past Due		Past Due		Past Due		Total
	(Dollars in thousands)
Commercial	$	3,285	$	262	$	1,704	$	5,251	$	551,271	$	556,522
Real estate:
CRE		—		—		—		—		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

	December 31, 2016						December 31, 2015
	Nonclassified		Classified		Total		Nonclassified		Classified		Total
Commercial	$	594,255	$	10,076	$	604,331	$	547,536	$	8,986	$	556,522
Real estate:
CRE		659,777		2,451		662,228		617,865		7,800		625,665
Land and construction		80,803		199		81,002		84,209		219		84,428
Home equity		81,866		593		82,459		75,511		1,322		76,833
Residential mortgages		52,887		—		52,887		—		—		—
Consumer		20,455		5		20,460		15,705		305		16,010
Total	$	1,490,043	$	13,324	$	1,503,367	$	1,340,826	$	18,632	$	1,359,458

Schedule of loans outstanding to related parties

	2016		2015
	(Dollars in thousands)
Beginning of year balance	$	562	$	576
Advances on loans during the year		—		4,175
Repayment on loans during the year		(15)		(4,189)
End of year balance	$	547	$	562