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
|
|
|