Loans (Tables)

12 Months Ended

Dec. 31, 2017

Loans

Schedule of loans

	December 31,		December 31,
	2017		2016
	(Dollars in thousands)
Loans held-for-investment:
Commercial	$	573,296	$	604,331
Real estate:
CRE		772,867		662,228
Land and construction		100,882		81,002
Home equity		79,176		82,459
Residential mortgages		44,561		52,887
Consumer		12,395		20,460
Loans		1,583,177		1,503,367
Deferred loan fees, net		(510)		(760)
Loans, net of deferred fees		1,582,667		1,502,607
Allowance for loan losses		(19,658)		(19,089)
Loans, net	$	1,563,009	$	1,483,518

Schedule of changes in allowance for loan losses

	Year Ended December 31, 2017
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Beginning of period balance	$	10,656	$	8,327	$	106	$	19,089
Charge-offs		(2,239)		—		—		(2,239)
Recoveries		1,585		1,124		—		2,709
Net (charge-offs) recoveries		(654)		1,124		—		470
Provision (credit) for loan losses		606		(501)		(6)		99
End of year balance	$	10,608	$	8,950	$	100	$	19,658

	Year Ended December 31, 2016
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Beginning of period 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 period 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

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

	December 31, 2017
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	290	$	—	$	—	$	290
Collectively evaluated for impairment		10,318		8,950		100		19,368
Acquired with deteriorated credit quality		—		—		—		—
Total allowance balance	$	10,608	$	8,950	$	100	$	19,658
Loans:
Individually evaluated for impairment	$	1,775	$	998	$	1	$	2,774
Collectively evaluated for impairment		571,521		996,488		12,394		1,580,403
Acquired with deteriorated credit quality		—		—		—		—
Total loan balance	$	573,296	$	997,486	$	12,395	$	1,583,177

	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

	December 31, 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	$	1,243	$	1,243	$	—	$	1,808	$	1,808	$	—
Real estate:
CRE		500		500		—		1,278		419		—
Land and construction		138		119		—		218		199		—
Home Equity		379		379		—		267		267		—
Consumer		1		1		—		3		3		—
Total with no related allowance recorded		2,261		2,242		—		3,574		2,696		—
With an allowance recorded:
Commercial		589		532		290		494		494		329
Real estate:
Land and construction		—		—		—		—		—		—
Total with an allowance recorded		589		532		290		494		494		329
Total	$	2,850	$	2,774	$	290	$	4,068	$	3,190	$	329

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

	Year Ended December 31, 2017
			Real Estate
					Land and		Home
	Commercial		CRE		Construction		Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	2,455	$	567	$	359	$	337	$	1	$	3,719
Interest income during impairment	$	—	$	—	$	3	$	—	$	—	$	3
Cash-basis interest recognized	$	—	$	—	$	—	$	—	$	—	$	—

	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 recognized	$	—	$	—	$	—	$	—	$	—	$	—

Schedule of nonperforming loans

	2017		2016
	(Dollars in thousands)
Nonaccrual loans - held-for-investment	$	2,250	$	3,059
Restructured and loans over 90 days past due and still accruing		235		—
Total nonperforming loans		2,485		3,059
Other restructured loans		289		131
Total impaired loans	$	2,774	$	3,190

Schedule of nonperforming loans by class

	December 31, 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	$	1,250	$	235	$	1,485	$	2,171	$	—	$	2,171
Real estate:
CRE		501		—		501		419		—		419
Land and construction		119				119		199		—		199
Home equity		379		—		379		267		—		267
Consumer		1		—		1		3		—		3
Total	$	2,250	$	235	$	2,485	$	3,059	$	—	$	3,059

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, 2017 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	$	4,288	$	1,224	$	589	$	6,101	$	567,195	$	573,296
Real estate:
CRE		—		—		500		500		772,367		772,867
Land and construction		—		—		119		119		100,763		100,882
Home equity		223		—		—		223		78,953		79,176
Residential mortgages		—		—		—		—		44,561		44,561
Consumer		—		—		—		—		12,395		12,395
Total	$	4,511	$	1,224	$	1,208	$	6,943	$	1,576,234	$	1,583,177

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

Summary of loan portfolio by loan type and credit quality classification

	December 31, 2017						December 31, 2016
	Nonclassified		Classified		Total		Nonclassified		Classified		Total
Commercial	$	554,913	$	18,383	$	573,296	$	594,255	$	10,076	$	604,331
Real estate:
CRE		766,988		5,879		772,867		659,777		2,451		662,228
Land and construction		100,763		119		100,882		80,803		199		81,002
Home equity		78,486		690		79,176		81,866		593		82,459
Residential mortgages		44,561		—		44,561		52,887		—		52,887
Consumer		12,394		1		12,395		20,455		5		20,460
Total	$	1,558,105	$	25,072	$	1,583,177	$	1,490,043	$	13,324	$	1,503,367

Schedule of loans by class modified as troubled debt restructurings

	During the Year Ended
		December 31, 2017
				Pre-modification		Post-modification
		Number		Outstanding		Outstanding
		of		Recorded		Recorded
Troubled Debt Restructurings:		Contracts		Investment		Investment
	(Dollars in thousands)
Commercial		3	$	213	$	213
Total		3	$	213	$	213

Schedule of loans outstanding to related parties

	2017		2016
	(Dollars in thousands)
Beginning of year balance	$	547	$	562
Repayment on loans during the year		(16)		(15)
End of year balance	$	531	$	547