Loans (Tables)

3 Months Ended

Mar. 31, 2014

The following is a summary of loans:



(Dollars in thousands)	March 31, 2014				December 31, 2013
	Amount		%		Amount		%
Commercial:
Mortgages (1)		$788,836	32	%		$796,249	32	%
Construction and development (2)	24,696		1		36,289		1
Other (3)	523,751		21		530,797		22
Total commercial	1,337,283		54		1,363,335		55
Residential real estate:
Mortgages (4)	784,623		32		749,163		30
Homeowner construction	25,770		1		23,511		1
Total residential real estate	810,393		33		772,674		31
Consumer:
Home equity lines	233,728		9		231,362		9
Home equity loans	41,991		2		40,212		2
Other (4)	55,208		2		55,301		3
Total consumer	330,927		13		326,875		14
Total loans (5)		$2,478,603	100	%		$2,462,884	100	%


(1)	Amortizing mortgages and lines of credit, primarily secured by income producing property.


(2)	Loans for construction commercial properties, loans to developers for construction of residential properties and loans for land development.


(3)	Loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate.


(4)	Fixed-rate consumer installment loans.


(5)	Includes net unamortized loan origination costs of $1.1 million and $879 thousand, respectively, and net unamortized premiums on purchased loans of $102 thousand and $99 thousand, respectively, at March 31, 2014 and December 31, 2013.

Nonaccrual Loans

The following is a summary of nonaccrual loans, segregated by class of loans:



(Dollars in thousands)	Mar 31, 2014		Dec 31, 2013
Commercial:
Mortgages		$2,293		$7,492
Construction and development	—		—
Other	1,198		1,291
Residential real estate:
Mortgages	8,975		8,315
Homeowner construction	—		—
Consumer:
Home equity lines	568		469
Home equity loans	474		687
Other	66		48
Total nonaccrual loans		$13,574		$18,302
Accruing loans 90 days or more past due		$—		$—

As of March 31, 2014 and December 31, 2013, nonaccrual loans of $2.1 million and $2.7 million, respectively, were current as to the payment of principal and interest.

Past Due Loans

Past due status is based on the contractual payment terms of the loan. The following tables present an age analysis of past due loans, segregated by class of loans:



(Dollars in thousands)	Days Past Due
March 31, 2014	30-59		60-89		Over 90		Total Past Due		Current		Total Loans
Commercial:
Mortgages		$—		$15		$2,238		$2,253		$786,583		$788,836
Construction and development	—		—		—		—		24,696		24,696
Other	3,351		127		428		3,906		519,845		523,751
Residential real estate:
Mortgages	2,232		1,265		5,634		9,131		775,492		784,623
Homeowner construction	—		—		—		—		25,770		25,770
Consumer:
Home equity lines	1,004		492		269		1,765		231,963		233,728
Home equity loans	351		116		366		833		41,158		41,991
Other	10		50		66		126		55,082		55,208
Total loans		$6,948		$2,065		$9,001		$18,014		$2,460,589		$2,478,603



(Dollars in thousands)	Days Past Due
December 31, 2013	30-59		60-89		Over 90		Total Past Due		Current		Total Loans
Commercial:
Mortgages		$—		$—		$7,492		$7,492		$788,757		$796,249
Construction and development	—		—		—		—		36,289		36,289
Other	276		302		731		1,309		529,488		530,797
Residential real estate:
Mortgages	4,040		1,285		5,633		10,958		738,205		749,163
Homeowner construction	—		—		—		—		23,511		23,511
Consumer:
Home equity lines	831		100		269		1,200		230,162		231,362
Home equity loans	448		66		349		863		39,349		40,212
Other	43		—		38		81		55,220		55,301
Total loans		$5,638		$1,753		$14,512		$21,903		$2,440,981		$2,462,884

Included in past due loans as of March 31, 2014 and December 31, 2013, were nonaccrual loans of $11.5 million and $15.6 million, respectively. All loans 90 days or more past due at March 31, 2014 and December 31, 2013 were classified as nonaccrual.

Impaired Loans

The following is a summary of impaired loans:



(Dollars in thousands)	Recorded Investment (1)				Unpaid Principal				Related Allowance
	Mar 31, 2014		Dec 31, 2013		Mar 31, 2014		Dec 31, 2013		Mar 31, 2014		Dec 31, 2013
No Related Allowance Recorded:
Commercial:
Mortgages		$9,084		$998		$9,077		$998		$—		$—
Construction and development	—		—		—		—		—		—
Other	1,052		1,055		1,045		1,050		—		—
Residential real estate:
Mortgages	789		1,167		872		1,259		—		—
Homeowner construction	—		—		—		—		—		—
Consumer:
Home equity lines	—		—		—		—		—		—
Home equity loans	—		—		—		—		—		—
Other	—		—		—		—		—		—
Subtotal		$10,925		$3,220		$10,994		$3,307		$—		$—
With Related Allowance Recorded:
Commercial:
Mortgages		$16,045		$29,335		$18,610		$31,731		$292		$552
Construction and development	—		—		—		—		—		—
Other	1,142		1,506		1,457		1,945		297		463
Residential real estate:
Mortgages	2,735		3,122		3,037		3,507		436		463
Homeowner construction	—		—		—		—		—		—
Consumer:
Home equity lines	93		173		91		174		1		1
Home equity loans	135		55		135		54		1		—
Other	117		127		118		130		—		2
Subtotal		$20,267		$34,318		$23,448		$37,541		$1,027		$1,481
Total impaired loans		$31,192		$37,538		$34,442		$40,848		$1,027		$1,481
Total:
Commercial		$27,323		$32,894		$30,189		$35,724		$589		$1,015
Residential real estate	3,524		4,289		3,909		4,766		436		463
Consumer	345		355		344		358		2		3
Total impaired loans		$31,192		$37,538		$34,442		$40,848		$1,027		$1,481

(1)

The recorded investment in impaired loans consists of unpaid principal balance, net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs. For impaired accruing loans (troubled debt restructurings for which management has concluded that the collectibility of the loan is not in doubt), the recorded investment also includes accrued interest.

The following table presents the average recorded investment balance of impaired loans and interest income recognized on impaired loans segregated by loan class, for the periods indicated:



(Dollars in thousands)	Average Recorded Investment				Interest Income Recognized
Three months ended March 31,	2014		2013		2014		2013
Commercial:
Mortgages		$28,340		$20,903		$165		$100
Construction and development	—		—		—		—
Other	2,366		10,635		23		64
Residential real estate:
Mortgages	3,744		4,000		14		22
Homeowner construction	—		—		—		—
Consumer:
Home equity lines	134		263		1		3
Home equity loans	95		105		1		3
Other	125		163		2		2
Totals		$34,804		$36,069		$206		$194

Troubled Debt Restructurings

The following table presents loans modified as a troubled debt restructuring during the periods indicated:



(Dollars in thousands)			Outstanding Recorded Investment (1)
	# of Loans		Pre-Modifications				Post-Modifications
Three months ended March 31,	2014	2013	2014		2013		2014		2013
Commercial:
Mortgages	—	2		$—		$452		$—		$372
Construction and development	—	—	—		—		—		—
Other	—	—	—		—		—		—
Residential real estate:
Mortgages	2	—	479		—		479		—
Homeowner construction	—	—	—		—		—		—
Consumer:
Home equity lines	—	1	—		92		—		92
Home equity loans	—	—	—		—		—		—
Other	—	—	—		—		—		—
Totals	2	3		$479		$544		$479		$464


(1)	The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs, at the time of the restructuring. For accruing troubled debt restructured loans, the recorded investment also includes accrued interest.

Troubled Debt Restructurings Type of Modification

The following table provides information on how loans were modified as a troubled debt restructuring during the periods indicated.



(Dollars in thousands)
Three months ended March 31,	2014		2013
Below market interest rate concession		$—		$314
Payment deferral	479		—
Maturity / amortization concession	—		—
Interest only payments	—		92
Combination (1)	—		138
Total		$479		$544


(1)	Loans included in this classification were modified with a combination of any two of the concessions listed in this table.

Troubled Debt Restructurings Subsequent Default

The following table presents loans modified in a troubled debt restructuring within the previous twelve months for which there was a payment default during the periods indicated:



(Dollars in thousands)	# of Loans		Recorded Investment (1)
Three months ended March 31,	2014	2013	2014		2013
Commercial:
Mortgages	—	1		$—		$235
Construction and development	—	—	—		—
Other	6	—	1,191		—
Residential real estate:
Mortgages	—	—	—		—
Homeowner construction	—	—	—		—
Consumer:
Home equity lines	—	1	—		32
Home equity loans	—	—	—		—
Other	—	—	—		—
Totals	6	2		$1,191		$267


(1)	The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs. For accruing troubled debt restructured loans, the recorded investment also includes accrued interest.

Credit Quality Indicators - Commercial

The following table presents the commercial loan portfolio, segregated by category of credit quality indicator:



(Dollars in thousands)	Pass				Special Mention				Classified
	Mar 31, 2014		Dec 31, 2013		Mar 31, 2014		Dec 31, 2013		Mar 31, 2014		Dec 31, 2013
Mortgages		$754,727		$756,838		$23,089		$23,185		$11,020		$16,226
Construction and development	24,696		36,289		—		—		—		—
Other	504,857		507,962		15,923		19,887		2,971		2,948
Total commercial loans		$1,284,280		$1,301,089		$39,012		$43,072		$13,991		$19,174

Credit Quality Indicators Residential & Consumer

The following table presents the residential and consumer loan portfolios, segregated by category of credit quality indicator:



(Dollars in thousands)	Under 90 Days Past Due				Over 90 Days Past Due
	Mar 31, 2014		Dec 31, 2013		Mar 31, 2014		Dec 31, 2013
Residential real estate:
Accruing mortgages		$775,648		$740,848		$—		$—
Nonaccrual mortgages	3,341		2,682		5,634		5,633
Homeowner construction	25,770		23,511		—		—
Total residential real estate loans		$804,759		$767,041		$5,634		$5,633
Consumer:
Home equity lines		$233,459		$231,093		$269		$269
Home equity loans	41,625		39,864		366		348
Other	55,142		55,262		66		39
Total consumer loans		$330,226		$326,219		$701		$656