Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2019

Receivables [Abstract]

Bank's Allowance for Loan Losses

The following is a roll forward of the Bank’s allowance for loan losses for the following periods:

(dollars in thousands)	Beginning Balance		Provision for Loan Losses			Charge-offs			Recoveries		Ending Balance
Quarter Ended September 30, 2019:
Real estate loans:
Residential properties	$	8,702	$	(575	)	$	—		$	—	$	8,127
Commercial properties		4,560		5			—			—		4,565
Land		471		102			—			—		573
Commercial and industrial loans		6,261		648			(1,279	)		1,407		7,037
Consumer loans		206		(8	)		—			—		198
Total	$	20,200	$	172		$	(1,279	)	$	1,407	$	20,500
Nine Months Ended September 30, 2019:
Real estate loans:
Residential properties	$	9,216	$	(1,089	)	$	—		$	—	$	8,127
Commercial properties		4,547		18			—			—		4,565
Land		391		182			—			—		573
Commercial and industrial loans		4,628		2,848			(2,208	)		1,769		7,037
Consumer loans		218		(16	)		(5	)		1		198
Total	$	19,000	$	1,943		$	(2,213	)	$	1,770	$	20,500
Year Ended December 31, 2018:
Real estate loans:
Residential properties	$	9,715	$	(499	)	$	—		$	—	$	9,216
Commercial properties		4,399		359			(211	)		—		4,547
Land		395		(4	)		—			—		391
Commercial and industrial loans		3,624		4,413			(3,978	)		569		4,628
Consumer loans		267		(49	)		—			—		218
Total	$	18,400	$	4,220		$	(4,189	)	$	569	$	19,000

Balance in Allowance for Loan Losses and Recorded Investment in Loans by Impairment

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by impairment method as of:

	Allowance for Loan Losses								Unaccreted Credit
	Evaluated for Impairment				Purchased				Component
(dollars in thousands)	Individually		Collectively		Impaired		Total		Other Loans
September 30, 2019:
Allowance for loan losses:
Real estate loans:
Residential properties	$	—	$	8,127	$	—	$	8,127	$	1,167
Commercial properties		111		4,454		—		4,565		1,277
Land		—		573		—		573		25
Commercial and industrial loans		282		6,755		—		7,037		326
Consumer loans		—		198		—		198		1
Total	$	393	$	20,107	$	—	$	20,500	$	2,796
Loans:
Real estate loans:
Residential properties	$	1,426	$	2,836,805	$	—	$	2,838,231	$	200,542
Commercial properties		12,688		855,157		3,380		871,225		235,633
Land		697		69,625		788		71,110		34,562
Commercial and industrial loans		10,722		555,045		623		566,390		29,060
Consumer loans		—		16,505		—		16,505		285
Total	$	25,533	$	4,333,137	$	4,791	$	4,363,461	$	500,082
December 31, 2018:
Allowance for loan losses:
Real estate loans:
Residential properties	$	—	$	9,216	$	—	$	9,216	$	1,724
Commercial properties		126		4,421		—		4,547		1,779
Land		—		391		—		391		84
Commercial and industrial loans		290		4,338		—		4,628		633
Consumer loans		—		218		—		218		3
Total	$	416	$	18,584	$	—	$	19,000	$	4,223
Loans:
Real estate loans:
Residential properties	$	651	$	2,861,112	$	—	$	2,861,763	$	241,698
Commercial properties		2,871		860,835		5,463		869,169		275,516
Land		697		78,681		809		80,187		41,132
Commercial and industrial loans		8,559		440,437		809		449,805		61,183
Consumer loans		—		22,699		—		22,699		366
Total	$	12,778	$	4,263,764	$	7,081	$	4,283,623	$	619,895

Risk Category of Loans by Class of Loans

Based on the most recent analysis performed, the risk category of loans by class of loans is as follows as of:

(dollars in thousands)	Pass		Special Mention		Substandard		Impaired		Total
September 30, 2019:
Real estate loans:
Residential properties	$	2,835,650	$	1,155	$	—	$	1,426	$	2,838,231
Commercial properties		851,578		688		7,066		11,893		871,225
Land		69,625		—		788		697		71,110
Commercial and industrial loans		547,235		689		6,949		11,517		566,390
Consumer loans		16,505		—		—		—		16,505
Total	$	4,320,593	$	2,532	$	14,803	$	25,533	$	4,363,461
December 31, 2018:
Real estate loans:
Residential properties	$	2,857,666	$	3,446	$	—	$	651	$	2,861,763
Commercial properties		845,672		13,024		7,602		2,871		869,169
Land		78,681		—		809		697		80,187
Commercial and industrial loans		431,751		7,723		1,772		8,559		449,805
Consumer loans		22,699		—		—		—		22,699
Total	$	4,236,469	$	24,193	$	10,183	$	12,778	$	4,283,623

Individual Evaluation of Impaired Loans and Related Allowance

Impaired loans evaluated individually and any related allowance are as follows as of:

	With No Allowance Recorded				With an Allowance Recorded
(dollars in thousands)	Unpaid Principal Balance		Recorded Investment		Unpaid Principal Balance		Recorded Investment		Related Allowance
September 30, 2019:
Real estate loans:
Residential properties	$	1,479	$	1,426	$	—	$	—	$	—
Commercial properties		11,675		11,481		1,207		1,207		111
Land		697		697		—		—		—
Commercial and industrial loans		9,429		8,717		2,084		2,005		282
Total	$	23,280	$	22,321	$	3,291	$	3,212	$	393
December 31, 2018:
Real estate loans:
Residential properties	$	651	$	651	$	—	$	—	$	—
Commercial properties		1,607		1,607		1,264		1,264		126
Land		697		697		—		—		—
Commercial and industrial loans		6,543		6,543		2,016		2,016		290
Total	$	9,498	$	9,498	$	3,280	$	3,280	$	416

Weighted Average Annualized Balance of Recorded Investment and Interest Income on Impaired Loans

The weighted average annualized average balance of the recorded investment for impaired loans, beginning from when the loan became impaired, and any interest income recorded on impaired loans after they became impaired is as follows for the:

	Nine Months Ended September 30, 2019				Year Ended December 31, 2018
(dollars in thousands)	Average Recorded Investment		Interest Income after Impairment		Average Recorded Investment		Interest Income after Impairment
Real estate loans:
Residential properties	$	1,453	$	—	$	276	$	—
Commercial properties		9,512		222		3,459		90
Land		697		—		—		—
Commercial and industrial loans		10,080		—		9,117		—
Total	$	21,742	$	222	$	12,852	$	90