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Loans (Tables)
12 Months Ended
Dec. 31, 2018
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Categories of loans include: 
 
 
December 31,
 
 
2018
 
2017
Commercial loans
 
 

 
 

Commercial and industrial
 
$
114,382

 
$
122,940

Owner-occupied commercial real estate
 
87,962

 
75,768

Investor commercial real estate
 
5,391

 
7,273

Construction
 
39,916

 
49,213

Single tenant lease financing
 
919,440

 
803,299

Public finance
 
706,342

 
438,341

Healthcare finance
 
117,007

 
31,573

Total commercial loans
 
1,990,440

 
1,528,407

Consumer loans
 
 
 
 
Residential mortgage
 
399,898

 
299,935

Home equity
 
28,735

 
30,554

Other consumer
 
279,771

 
227,533

Total consumer loans
 
708,404

 
558,022

Total commercial and consumer loans
 
2,698,844

 
2,086,429

Net deferred loan origination costs and premiums and discounts on purchased loans and other(1)
 
17,384

 
4,764

Total loans
 
2,716,228

 
2,091,193

Allowance for loan losses
 
(17,896
)
 
(14,970
)
Net loans
 
$
2,698,332

 
$
2,076,223



(1) Includes carrying value adjustments of $5.0 million and $0.3 million as of December 31, 2018 and 2017, respectively, related to interest rate swaps associated with public finance loans.
Allowance for Credit Losses on Financing Receivables
 
 
Twelve Months Ended December 31, 2018
 
 
Balance, beginning of period
 
Provision (credit) charged to expense
 
Losses charged off
 
Recoveries
 
Balance, end of period
Allowance for loan losses:
 
 

 
 

 
 

 
 
 
 
Commercial and industrial
 
$
1,738

 
$
(170
)
 
$
(92
)
 
$
3

 
$
1,479

Owner-occupied commercial real estate
 
803

 
88

 

 

 
891

Investor commercial real estate
 
85

 
(24
)
 

 

 
61

Construction
 
423

 
(172
)
 

 

 
251

Single tenant lease financing
 
7,872

 
955

 

 

 
8,827

Public finance
 
959

 
711

 

 

 
1,670

Healthcare finance
 
313

 
951

 

 

 
1,264

Residential mortgage
 
956

 
127

 
(9
)
 
5

 
1,079

Home equity
 
70

 
(33
)
 

 
16

 
53

Other consumer
 
1,751

 
1,459

 
(1,176
)
 
287

 
2,321

Total
 
$
14,970

 
$
3,892

 
$
(1,277
)
 
$
311

 
$
17,896



 
 
Twelve Months Ended December 31, 2017
 
 
Balance, beginning of period
 
Provision (credit) charged to expense
 
Losses charged off
 
Recoveries
 
Balance, end of period
Allowance for loan losses:
 
 

 
 

 
 

 
 
 
 
Commercial and industrial
 
$
1,352

 
$
588

 
$
(271
)
 
$
69

 
$
1,738

Owner-occupied commercial real estate
 
582

 
221

 

 

 
803

Investor commercial real estate
 
168

 
(83
)
 

 

 
85

Construction
 
544

 
(121
)
 

 

 
423

Single tenant lease financing
 
6,248

 
1,624

 

 

 
7,872

Public finance
 

 
959

 

 

 
959

Healthcare finance
 

 
313

 

 

 
313

Residential mortgage
 
754

 
314

 
(116
)
 
4

 
956

Home equity
 
102

 
(55
)
 

 
23

 
70

Other consumer
 
1,231

 
1,112

 
(895
)
 
303

 
1,751

Total
 
$
10,981

 
$
4,872

 
$
(1,282
)
 
$
399

 
$
14,970

 
 
Twelve Months Ended December 31, 2016
 
 
Balance, beginning of period
 
Provision (credit) charged to expense
 
Losses charged off
 
Recoveries
 
Balance, end of period
Allowance for loan losses:
 
 

 
 

 
 

 
 
 
 
Commercial and industrial
 
$
1,367

 
$
1,380

 
$
(1,582
)
 
$
187

 
$
1,352

Owner-occupied commercial real estate
 
476

 
106

 

 

 
582

Investor commercial real estate
 
212

 
(44
)
 

 

 
168

Construction
 
500

 
44

 

 

 
544

Single tenant lease financing
 
3,931

 
2,317

 

 

 
6,248

Residential mortgage
 
896

 
(38
)
 
(134
)
 
30

 
754

Home equity
 
125

 
(3
)
 
(33
)
 
13

 
102

Other consumer
 
844

 
568

 
(440
)
 
259

 
1,231

Total
 
$
8,351

 
$
4,330

 
$
(2,189
)
 
$
489

 
$
10,981


The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2018 and 2017.


 
Loans
 
Allowance for Loan Losses
December 31, 2018
Ending Balance:  
Collectively Evaluated for Impairment
 
Ending Balance:  
Individually Evaluated for Impairment
 
Ending Balance
 
Ending Balance:  
Collectively Evaluated for Impairment
 
Ending Balance:  
Individually Evaluated for Impairment
 
Ending Balance
Commercial and industrial
$
108,742

 
$
5,640

 
$
114,382

 
$
1,479

 
$

 
$
1,479

Owner-occupied commercial real estate
85,653

 
2,309

 
87,962

 
891

 

 
891

Investor commercial real estate
5,391

 

 
5,391

 
61

 

 
61

Construction
39,916

 

 
39,916

 
251

 

 
251

Single tenant lease financing
919,440

 

 
919,440

 
8,827

 

 
8,827

Public finance
706,342

 

 
706,342

 
1,670

 

 
1,670

Healthcare finance
117,007

 

 
117,007

 
1,264

 

 
1,264

Residential mortgage
399,328

 
570

 
399,898

 
1,079

 

 
1,079

Home equity
28,680

 
55

 
28,735

 
53

 

 
53

Other consumer
279,714

 
57

 
279,771

 
2,321

 

 
2,321

Total
$
2,690,213

 
$
8,631

 
$
2,698,844

 
$
17,896

 
$

 
$
17,896



 
Loans
 
Allowance for Loan Losses
December 31, 2017
Ending Balance:  
Collectively Evaluated for Impairment
 
Ending Balance:  
Individually Evaluated for Impairment
 
Ending Balance
 
Ending Balance:  
Collectively Evaluated for Impairment
 
Ending Balance:  
Individually Evaluated for Impairment
 
Ending Balance
Commercial and industrial
$
119,054

 
$
3,886

 
$
122,940

 
$
1,738

 
$

 
$
1,738

Owner-occupied commercial real estate
75,761

 
7

 
75,768

 
803

 

 
803

Investor commercial real estate
7,273

 

 
7,273

 
85

 

 
85

Construction
49,213

 

 
49,213

 
423

 

 
423

Single tenant lease financing
803,299

 

 
803,299

 
7,872

 

 
7,872

Public finance
438,341

 

 
438,341

 
959

 

 
959

Healthcare finance
31,573

 

 
31,573

 
313

 

 
313

Residential mortgage
298,796

 
1,139

 
299,935

 
956

 

 
956

Home equity
30,471

 
83

 
30,554

 
70

 

 
70

Other consumer
227,443

 
90

 
227,533

 
1,751

 

 
1,751

Total
$
2,081,224

 
$
5,205

 
$
2,086,429

 
$
14,970

 
$

 
$
14,970


Financing Receivable Credit Quality Indicators
The following tables present the credit risk profile of the Company’s commercial and consumer loan portfolios based on rating category and payment activity as of December 31, 2018 and 2017

 
December 31, 2018
 
Pass
 
Special Mention
 
Substandard
 
Total
Commercial and industrial
$
107,666

 
$
1,076

 
$
5,640

 
$
114,382

Owner-occupied commercial real estate
81,264

 
4,389

 
2,309

 
87,962

Investor commercial real estate
5,391

 

 

 
5,391

Construction
39,916

 

 

 
39,916

Single tenant lease financing
913,984

 
5,456

 

 
919,440

Public finance
706,342

 

 

 
706,342

Healthcare finance
117,007

 

 

 
117,007

Total commercial loans
$
1,971,570

 
$
10,921

 
$
7,949

 
$
1,990,440


 
 
December 31, 2018
 
 
Performing
 
Nonaccrual
 
Total
Residential mortgage
 
$
399,723

 
$
175

 
$
399,898

Home equity
 
28,680

 
55

 
28,735

Other consumer
 
279,729

 
42

 
279,771

Total
 
$
708,132

 
$
272

 
$
708,404


 
December 31, 2017
 
Pass
 
Special Mention
 
Substandard
 
Total
Commercial and industrial
$
113,840

 
$
5,203

 
$
3,897

 
$
122,940

Owner-occupied commercial real estate
72,995

 
2,766

 
7

 
75,768

Investor commercial real estate
7,273

 

 

 
7,273

Construction
49,213

 

 

 
49,213

Single tenant lease financing
796,307

 
6,992

 

 
803,299

Public finance
438,341

 

 

 
438,341

Healthcare finance
31,573

 

 

 
31,573

Total commercial loans
$
1,509,542

 
$
14,961

 
$
3,904

 
$
1,528,407


 
 
December 31, 2017
 
 
Performing
 
Nonaccrual
 
Total
Residential mortgage
 
$
299,211

 
$
724

 
$
299,935

Home equity
 
30,471

 
83

 
30,554

Other consumer
 
227,501

 
32

 
227,533

Total
 
$
557,183

 
$
839

 
$
558,022

Past Due Financing Receivables
The following tables present the Company’s loan portfolio delinquency analysis as of December 31, 2018 and 2017.
 
 
December 31, 2018
 
 
30-59
Days
Past Due
 
60-89
Days
Past Due
 
90 Days 
or More
Past Due
 
Total 
Past Due
 
Current
 
Total loans
 
Nonaccrual
Loans
 
Total Loans
90 Days or
More Past 
Due and Accruing
Commercial and industrial
 
$
9

 
$

 
$

 
$
9

 
$
114,373

 
$
114,382

 
$
195

 
$

Owner-occupied commercial real estate
 
92

 
234

 

 
326

 
87,636

 
87,962

 
325

 

Investor commercial real estate
 

 

 

 

 
5,391

 
5,391

 

 

Construction
 

 

 

 

 
39,916

 
39,916

 

 

Single tenant lease financing
 

 

 

 

 
919,440

 
919,440

 

 

Public finance
 

 

 

 

 
706,342

 
706,342

 

 

Healthcare finance
 

 

 

 

 
117,007

 
117,007

 

 

Residential mortgage
 

 
3,118

 
98

 
3,216

 
396,682

 
399,898

 
175

 
97

Home equity
 

 

 
55

 
55

 
28,680

 
28,735

 
55

 

Other consumer
 
235

 
170

 
4

 
409

 
279,362

 
279,771

 
42

 

Total
 
$
336

 
$
3,522

 
$
157

 
$
4,015

 
$
2,694,829

 
$
2,698,844

 
$
792

 
$
97

 
 
December 31, 2017
 
 
30-59
Days
Past Due
 
60-89
Days
Past Due
 
90 Days 
or More
Past Due
 
Total 
Past Due
 
Current
 
Total loans
 
Nonaccrual
Loans
 
Total Loans
90 Days or
More Past 
Due
and Accruing
Commercial and industrial
 
$

 
$
10

 
$

 
$
10

 
$
122,930

 
$
122,940

 
$

 
$

Owner-occupied commercial real estate
 

 

 

 

 
75,768

 
75,768

 

 

Investor commercial real estate
 

 

 

 

 
7,273

 
7,273

 

 

Construction
 

 

 

 

 
49,213

 
49,213

 

 

Single tenant lease financing
 

 

 

 

 
803,299

 
803,299

 

 

Public finance
 

 

 


 

 
438,341

 
438,341

 

 

Healthcare finance
 

 

 


 

 
31,573

 
31,573

 

 

Residential mortgage
 

 
23

 
560

 
583

 
299,352

 
299,935

 
724

 

Home equity
 

 

 
83

 
83

 
30,471

 
30,554

 
83

 

Other consumer
 
299

 
110

 
6

 
415

 
227,118

 
227,533

 
32

 

Total
 
$
299

 
$
143

 
$
649

 
$
1,091

 
$
2,085,338

 
$
2,086,429

 
$
839

 
$

Impaired Financing Receivables
The following tables present the Company’s impaired loans as of December 31, 2018 and 2017. There were no impaired loans with a specific valuation allowance as of December 31, 2018 and 2017.
 
 
December 31, 2018
 
December 31, 2017
 
 
Recorded
Balance
 
Unpaid
Principal
Balance
 
Specific
Allowance
 
Recorded
Balance
 
Unpaid
Principal
Balance
 
Specific
Allowance
Loans without a specific valuation allowance
 
 

 
 

 
 

 
 

 
 

 
 

Commercial and industrial
 
$
5,640

 
$
5,652

 
$

 
$
3,886

 
$
3,886

 
$

Owner-occupied commercial real estate
 
2,309

 
2,309

 

 
7

 
7

 

Residential mortgage
 
570

 
570

 

 
1,139

 
1,144

 

Home equity
 
55

 
55

 

 
83

 
83

 

Other consumer
 
57

 
124

 

 
90

 
143

 

Total impaired loans
 
$
8,631

 
$
8,710

 
$

 
$
5,205

 
$
5,263

 
$


The table below presents average balances and interest income recognized for impaired loans during the twelve months ended December 31, 2018, 2017, and 2016.
 
 
Twelve Months Ended
 
 
December 31, 2018
 
December 31, 2017
 
December 31, 2016
 
 
Average
Balance
 
Interest
Income
 
Average
Balance
 
Interest
Income
 
Average
Balance
 
Interest
Income
Loans without a specific valuation allowance
 
 

 
 

 
 

 
 

 
 

 
 

Commercial and industrial
 
$
5,961

 
$
426

 
$
2,942

 
$
146

 
$

 
$

Owner-occupied commercial real estate
 
893

 
59

 
3

 

 

 

Residential mortgage
 
720

 

 
1,546

 
6

 
1,595

 
8

Home equity
 
61

 

 
5

 

 

 

Other consumer
 
108

 

 
105

 
4

 
149

 
5

Total
 
7,743

 
485

 
4,601

 
156

 
1,744

 
13

Loans with a specific valuation allowance
 
 

 
 

 
 

 
 

 
 

 
 

Commercial and industrial
 

 

 
35

 

 
1,084

 

Total
 

 

 
35

 

 
1,084

 

Total impaired loans
 
$
7,743

 
$
485

 
$
4,636

 
$
156

 
$
2,828

 
$
13