Loans (Tables)

9 Months Ended

Sep. 30, 2017

Loans

Schedule of loans

	September 30,		December 31,
	2017		2016
	(Dollars in thousands)
Loans held-for-investment:
Commercial	$	587,276	$	604,331
Real estate:
CRE		754,856		662,228
Land and construction		92,310		81,002
Home equity		74,171		82,459
Residential mortgages		46,489		52,887
Consumer		11,749		20,460
Loans		1,566,851		1,503,367
Deferred loan fees, net		(901)		(760)
Loans, net of deferred fees		1,565,950		1,502,607
Allowance for loan losses		(19,748)		(19,089)
Loans, net	$	1,546,202	$	1,483,518

Schedule of changes in allowance for loan losses

	Three Months Ended September 30, 2017
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Beginning of period balance	$	11,259	$	7,982	$	156	$	19,397
Charge-offs		(111)		—		—		(111)
Recoveries		281		66		—		347
Net recoveries		170		66		—		236
Provision (credit) for loan losses		(441)		592		(36)		115
End of period balance	$	10,988	$	8,640	$	120	$	19,748

	Three Months Ended September 30, 2016
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Beginning of period balance	$	11,528	$	8,277	$	116	$	19,921
Charge-offs		(160)		—		—		(160)
Recoveries		21		5		—		26
Net (charge-offs) recoveries		(139)		5		—		(134)
Provision (credit) for loan losses		792		(519)		(28)		245
End of period balance	$	12,181	$	7,763	$	88	$	20,032

	Nine Months Ended September 30, 2017
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Beginning of period balance	$	10,656	$	8,327	$	106	$	19,089
Charge-offs		(2,179)		—		—		(2,179)
Recoveries		1,453		995		—		2,448
Net (charge-offs) recoveries		(726)		995		—		269
Provision (credit) for loan losses		1,058		(682)		14		390
End of period balance	$	10,988	$	8,640	$	120	$	19,748

	Nine Months Ended September 30, 2016
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Beginning of period balance	$	10,748	$	8,076	$	102	$	18,926
Charge-offs		(300)		—		—		(300)
Recoveries		182		227		—		409
Net (charge-offs) recoveries		(118)		227		—		109
Provision (credit) for loan losses		1,551		(540)		(14)		997
End of period balance	$	12,181	$	7,763	$	88	$	20,032

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

	September 30, 2017
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	217	$	25	$	—	$	242
Collectively evaluated for impairment		10,771		8,615		120		19,506
Acquired with deteriorated credit quality		—		—		—		—
Total allowance balance	$	10,988	$	8,640	$	120	$	19,748
Loans:
Individually evaluated for impairment	$	1,833	$	1,982	$	1	$	3,816
Collectively evaluated for impairment		585,443		965,844		11,748		1,563,035
Acquired with deteriorated credit quality		—		—		—		—
Total loan balance	$	587,276	$	967,826	$	11,749	$	1,566,851

	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 deteriorated 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 deteriorated credit quality		245		—		—		245
Total loan balance	$	604,331	$	878,576	$	20,460	$	1,503,367

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

	September 30, 2017						December 31, 2016
					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	$	1,370	$	1,370	$	—	$	1,808	$	1,808	$	—
Real estate:
CRE		501		501		—		1,278		419		—
Land and construction		202		183		—		218		199		—
Home Equity		388		388		—		267		267		—
Consumer		1		1		—		3		3		—
Total with no related allowance recorded		2,462		2,443		—		3,574		2,696		—
With an allowance recorded:
Commercial		463		463		217		494		494		329
Real estate:
Land and construction		910		910		25		—		—		—
Total with an allowance recorded		1,373		1,373		242		494		494		329
Total	$	3,835	$	3,816	$	242	$	4,068	$	3,190	$	329

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

	Three Months Ended September 30, 2017
			Real Estate
					Land and		Home
	Commercial		CRE		Construction		Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	2,010	$	501	$	641	$	394	$	1	$	3,547
Interest income during impairment	$	—	$	—	$	3	$	—	$	—	$	3
Cash-basis interest earned	$	—	$	—	$	—	$	—	$	—	$	—

	Three Months Ended September 30, 2016
			Real Estate
					Land and		Home
	Commercial		CRE		Construction		Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	2,200	$	1,644	$	204	$	516	$	3	$	4,567
Interest income during impairment	$	—	$	—	$	—	$	—	$	—	$	—
Cash-basis interest earned	$	—	$	—	$	—	$	—	$	—	$	—

	Nine Months Ended September 30, 2017
			Real Estate
					Land and		Home
	Commercial		CRE		Construction		Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	2,625	$	583	$	419	$	326	$	2	$	3,955
Interest income during impairment	$	—	$	—	$	3	$	—	$	—	$	3
Cash-basis interest earned	$	—	$	—	$	—	$	—	$	—	$	—

	Nine Months Ended September 30, 2016
			Real Estate
					Land and		Home
	Commercial		CRE		Construction		Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	1,771	$	2,298	$	210	$	715	$	3	$	4,997
Interest income during impairment	$	—	$	—	$	—	$	—	$	—	$	—
Cash-basis interest earned	$	—	$	—	$	—	$	—	$	—	$	—

Schedule of nonperforming loans

	September 30,				December 31,
	2017		2016		2016
	(Dollars in thousands)
Nonaccrual loans - held-for-investment	$	2,560	$	4,496	$	3,059
Restructured and loans over 90 days past due and still accruing		931		—		—
Total nonperforming loans		3,491		4,496		3,059
Other restructured loans		325		137		131
Total impaired loans	$	3,816	$	4,633	$	3,190

Schedule of nonperforming loans by class

	September 30, 2017						December 31, 2016
				Restructured						Restructured
				and Loans						and Loans
				over 90 Days						over 90 Days
				Past Due						Past Due
				and Still						and Still
	Nonaccrual			Accruing	Total		Nonaccrual			Accruing	Total
	(Dollars in thousands)
Commercial	$	1,487	$	21	$	1,508	$	2,171	$	—	$	2,171
Real estate:
CRE		501		—		501		419		—		419
Land and construction		183		910		1,093		199		—		199
Home equity		388		—		388		267		—		267
Consumer		1		—		1		3		—		3
Total	$	2,560	$	931	$	3,491	$	3,059	$	—	$	3,059

Schedule of aging of past due loans by class of loans

	September 30, 2017
	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	$	3,798	$	601	$	575	$	4,974	$	582,302	$	587,276
Real estate:
CRE		—		831		—		831		754,025		754,856
Land and construction		—		—		1,093		1,093		91,217		92,310
Home equity		—		—		—		—		74,171		74,171
Residential mortgages		—		—		—		—		46,489		46,489
Consumer		—		—		—		—		11,749		11,749
Total	$	3,798	$	1,432	$	1,668	$	6,898	$	1,559,953	$	1,566,851

	December 31, 2016
	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

Summary of loan portfolio by loan type and credit quality classification

	September 30, 2017						December 31, 2016
	Nonclassified		Classified		Total		Nonclassified		Classified		Total
Commercial	$	578,867	$	8,409	$	587,276	$	594,255	$	10,076	$	604,331
Real estate:
CRE		754,152		704		754,856		659,777		2,451		662,228
Land and construction		91,217		1,093		92,310		80,803		199		81,002
Home equity		73,469		702		74,171		81,866		593		82,459
Residential mortgages		46,489		—		46,489		52,887		—		52,887
Consumer		11,748		1		11,749		20,455		5		20,460
Total	$	1,555,942	$	10,909	$	1,566,851	$	1,490,043	$	13,324	$	1,503,367

Schedule of loans by class modified as troubled debt restructurings

		During the Nine Months Ended
			September 30, 2017
					Pre-modification		Post-modification
	Number				Outstanding		Outstanding
	of				Recorded		Recorded
Troubled Debt Restructurings:	Contracts				Investment		Investment
		(Dollars in thousands)
Commercial	3			$	318	$	318
Total	3			$	318	$	318