Loans (Tables)

6 Months Ended

Jun. 30, 2014

Receivables [Abstract]

Summary of Loans

The following is a summary of loans:

(Dollars in thousands)	June 30, 2014				December 31, 2013
	Amount		%		Amount		%
Commercial:
Mortgages (1)		$772,772	30	%		$796,249	32	%
Construction and development (2)	38,574		1		36,289		1
Other (3)	554,824		22		530,797		22
Total commercial	1,366,170		53		1,363,335		55
Residential real estate:
Mortgages	846,187		33		749,163		30
Homeowner construction	30,452		1		23,511		1
Total residential real estate	876,639		34		772,674		31
Consumer:
Home equity lines	237,390		9		231,362		9
Home equity loans	45,632		2		40,212		2
Other (4)	55,293		2		55,301		3
Total consumer	338,315		13		326,875		14
Total loans (5)		$2,581,124	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 $1.5 million and $879 thousand, respectively, and net unamortized premiums on purchased loans of $100 thousand and $99 thousand, respectively, at June 30, 2014 and December 31, 2013.

Nonaccrual Loans

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

(Dollars in thousands)	Jun 30, 2014		Dec 31, 2013
Commercial:
Mortgages		$2,290		$7,492
Construction and development	—		—
Other	1,615		1,291
Residential real estate:
Mortgages	7,417		8,315
Homeowner construction	—		—
Consumer:
Home equity lines	724		469
Home equity loans	321		687
Other	168		48
Total nonaccrual loans		$12,535		$18,302
Accruing loans 90 days or more past due		$—		$—

As of June 30, 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
June 30, 2014	30-59		60-89		Over 90		Total Past Due		Current		Total Loans
Commercial:
Mortgages		$311		$1,583		$2,250		$4,144		$768,628		$772,772
Construction and development	—		—		—		—		38,574		38,574
Other	1,785		773		417		2,975		551,849		554,824
Residential real estate:
Mortgages	5,249		855		4,335		10,439		835,748		846,187
Homeowner construction	—		—		—		—		30,452		30,452
Consumer:
Home equity lines	1,227		554		280		2,061		235,329		237,390
Home equity loans	309		18		106		433		45,199		45,632
Other	353		530		126		1,009		54,284		55,293
Total loans		$9,234		$4,313		$7,514		$21,061		$2,560,063		$2,581,124

(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 June 30, 2014 and December 31, 2013, were nonaccrual loans of $10.4 million and $15.6 million, respectively. All loans 90 days or more past due at June 30, 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
	Jun 30, 2014		Dec 31, 2013		Jun 30, 2014		Dec 31, 2013		Jun 30, 2014		Dec 31, 2013
No Related Allowance Recorded:
Commercial:
Mortgages		$9,160		$998		$9,135		$998		$—		$—
Construction and development	—		—		—		—		—		—
Other	1,032		1,055		1,032		1,050		—		—
Residential real estate:
Mortgages	2,226		1,167		2,354		1,259		—		—
Homeowner construction	—		—		—		—		—		—
Consumer:
Home equity lines	—		—		—		—		—		—
Home equity loans	—		—		—		—		—		—
Other	—		—		—		—		—		—
Subtotal		$12,418		$3,220		$12,521		$3,307		$—		$—
With Related Allowance Recorded:
Commercial:
Mortgages		$15,788		$29,335		$16,275		$31,731		$747		$552
Construction and development	—		—		—		—		—		—
Other	1,556		1,506		1,843		1,945		324		463
Residential real estate:
Mortgages	2,253		3,122		2,538		3,507		390		463
Homeowner construction	—		—		—		—		—		—
Consumer:
Home equity lines	82		173		82		174		41		1
Home equity loans	94		55		91		54		21		—
Other	119		127		117		130		2		2
Subtotal		$19,892		$34,318		$20,946		$37,541		$1,525		$1,481
Total impaired loans		$32,310		$37,538		$33,467		$40,848		$1,525		$1,481
Total:
Commercial		$27,536		$32,894		$28,285		$35,724		$1,071		$1,015
Residential real estate	4,479		4,289		4,892		4,766		390		463
Consumer	295		355		290		358		64		3
Total impaired loans		$32,310		$37,538		$33,467		$40,848		$1,525		$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 June 30,	2014		2013		2014		2013
Commercial:
Mortgages		$25,093		$27,904		$240		$152
Construction and development	—		—		—		—
Other	2,492		7,385		15		50
Residential real estate:
Mortgages	4,452		4,496		36		27
Homeowner construction	—		—		—		—
Consumer:
Home equity lines	60		191		—		1
Home equity loans	157		69		2		1
Other	118		144		2		2
Totals		$32,372		$40,189		$295		$233

(Dollars in thousands)	Average Recorded Investment				Interest Income Recognized
Six months ended June 30,	2014		2013		2014		2013
Commercial:
Mortgages		$26,707		$24,423		$405		$252
Construction and development	—		—		—		—
Other	2,429		9,001		38		114
Residential real estate:
Mortgages	4,100		4,250		50		49
Homeowner construction	—		—		—		—
Consumer:
Home equity lines	97		227		2		4
Home equity loans	126		87		3		4
Other	122		153		4		4
Totals		$33,581		$38,141		$502		$427

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 June 30,	2014	2013	2014		2013		2014		2013
Commercial:
Mortgages	—	3		$—		$9,504		$—		$9,504
Construction and development	—	—	—		—		—		—
Other	9	5	763		1,168		763		1,168
Residential real estate:
Mortgages	—	—	—		—		—		—
Homeowner construction	—	—	—		—		—		—
Consumer:
Home equity lines	—	—	—		—		—		—
Home equity loans	—	—	—		—		—		—
Other	—	—	—		—		—		—
Totals	9	8		$763		$10,672		$763		$10,672

(Dollars in thousands)			Outstanding Recorded Investment (1)
	# of Loans		Pre-Modifications				Post-Modifications
Six months ended June 30,	2014	2013	2014		2013		2014		2013
Commercial:
Mortgages	—	5		$—		$9,956		$—		$9,876
Construction and development	—	—	—		—		—		—
Other	9	5	763		1,168		763		1,168
Residential real estate:
Mortgages	2	—	479		—		479		—
Homeowner construction	—	—	—		—		—		—
Consumer:
Home equity lines	—	1	—		92		—		92
Home equity loans	—	—	—		—		—		—
Other	—	—	—		—		—		—
Totals	11	11		$1,242		$11,216		$1,242		$11,136

(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				Six months
Periods ended June 30,	2014		2013		2014		2013
Below market interest rate concession		$77		$9,504		$77		$9,818
Payment deferral	—		—		479		—
Maturity / amortization concession	599		—		599		—
Interest only payments	—		323		—		415
Combination (1)	87		845		87		983
Total		$763		$10,672		$1,242		$11,216

(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 June 30,	2014	2013	2014		2013
Commercial:
Mortgages	—	1		$—		$482
Construction and development	—	—	—		—
Other	3	—	254		—
Residential real estate:
Mortgages	—	—	—		—
Homeowner construction	—	—	—		—
Consumer:
Home equity lines	—	—	—		—
Home equity loans	—	—	—		—
Other	—	—	—		—
Totals	3	1		$254		$482

(Dollars in thousands)	# of Loans		Recorded Investment (1)
Six months ended June 30,	2014	2013	2014		2013
Commercial:
Mortgages	—	2		$—		$717
Construction and development	—	—	—		—
Other	3	—	254		—
Residential real estate:
Mortgages	—	—	—		—
Homeowner construction	—	—	—		—
Consumer:
Home equity lines	—	—	—		—
Home equity loans	—	1	—		32
Other	—	—	—		—
Totals	3	3		$254		$749

(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
	Jun 30, 2014		Dec 31, 2013		Jun 30, 2014		Dec 31, 2013		Jun 30, 2014		Dec 31, 2013
Mortgages		$742,025		$756,838		$22,819		$23,185		$7,928		$16,226
Construction and development	38,574		36,289		—		—		—		—
Other	535,811		507,962		15,900		19,887		3,113		2,948
Total commercial loans		$1,316,410		$1,301,089		$38,719		$43,072		$11,041		$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
	Jun 30, 2014		Dec 31, 2013		Jun 30, 2014		Dec 31, 2013
Residential real estate:
Accruing mortgages		$838,770		$740,848		$—		$—
Nonaccrual mortgages	3,082		2,682		4,335		5,633
Homeowner construction	30,452		23,511		—		—
Total residential real estate loans		$872,304		$767,041		$4,335		$5,633
Consumer:
Home equity lines		$237,110		$231,093		$280		$269
Home equity loans	45,526		39,864		106		348
Other	55,167		55,262		126		39
Total consumer loans		$337,803		$326,219		$512		$656