Loans (Tables)

9 Months Ended

Sep. 30, 2014

The following is a summary of loans:



(Dollars in thousands)	September 30, 2014				December 31, 2013
	Amount		%		Amount		%
Commercial:
Mortgages (1)		$766,703	29	%		$796,249	32	%
Construction and development (2)	58,750		2		36,289		1
Other (3)	564,920		21		530,797		22
Total commercial	1,390,373		52		1,363,335		55
Residential real estate:
Mortgages	912,956		34		749,163		30
Homeowner construction	32,624		1		23,511		1
Total residential real estate	945,580		35		772,674		31
Consumer:
Home equity lines	240,567		9		231,362		9
Home equity loans	46,455		2		40,212		2
Other (4)	51,072		2		55,301		3
Total consumer	338,094		13		326,875		14
Total loans (5)		$2,674,047	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 $2.1 million and $879 thousand, respectively, and net unamortized premiums on purchased loans of $97 thousand and $99 thousand, respectively, at September 30, 2014 and December 31, 2013.

Nonaccrual Loans

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



(Dollars in thousands)	Sep 30, 2014		Dec 31, 2013
Commercial:
Mortgages		$6,022		$7,492
Construction and development	—		—
Other	1,326		1,291
Residential real estate:
Mortgages	7,890		8,315
Homeowner construction	—		—
Consumer:
Home equity lines	1,426		469
Home equity loans	300		687
Other	1		48
Total nonaccrual loans		$16,965		$18,302
Accruing loans 90 days or more past due		$—		$—

As of September 30, 2014 and December 31, 2013, nonaccrual loans of $2.6 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
September 30, 2014	30-59		60-89		Over 90		Total Past Due		Current		Total Loans
Commercial:
Mortgages		$—		$—		$5,995		$5,995		$760,708		$766,703
Construction and development	—		—		—		—		58,750		58,750
Other	1,129		314		970		2,413		562,507		564,920
Residential real estate:
Mortgages	2,582		2,001		3,922		8,505		904,451		912,956
Homeowner construction	—		—		—		—		32,624		32,624
Consumer:
Home equity lines	1,441		346		852		2,639		237,928		240,567
Home equity loans	188		8		136		332		46,123		46,455
Other	48		2		1		51		51,021		51,072
Total loans		$5,388		$2,671		$11,876		$19,935		$2,654,112		$2,674,047



(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		348		862		39,350		40,212
Other	43		—		39		82		55,219		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 September 30, 2014 and December 31, 2013, were nonaccrual loans of $14.4 million and $15.6 million, respectively. All loans 90 days or more past due at September 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
	Sep 30, 2014		Dec 31, 2013		Sep 30, 2014		Dec 31, 2013		Sep 30, 2014		Dec 31, 2013
No Related Allowance Recorded:
Commercial:
Mortgages		$1,147		$998		$1,176		$998		$—		$—
Construction and development	—		—		—		—		—		—
Other	1,031		1,055		1,031		1,050		—		—
Residential real estate:
Mortgages	2,302		1,167		2,659		1,259		—		—
Homeowner construction	—		—		—		—		—		—
Consumer:
Home equity lines	—		—		—		—		—		—
Home equity loans	—		—		—		—		—		—
Other	113		—		112		—		—		—
Subtotal		$4,593		$3,220		$4,978		$3,307		$—		$—
With Related Allowance Recorded:
Commercial:
Mortgages		$14,579		$29,335		$14,558		$31,731		$927		$552
Construction and development	—		—		—		—		—		—
Other	1,335		1,506		1,753		1,945		207		463
Residential real estate:
Mortgages	1,734		3,122		1,790		3,507		256		463
Homeowner construction	—		—		—		—		—		—
Consumer:
Home equity lines	82		173		82		174		41		1
Home equity loans	73		55		90		54		12		—
Other	3		127		4		130		1		2
Subtotal		$17,806		$34,318		$18,277		$37,541		$1,444		$1,481
Total impaired loans		$22,399		$37,538		$23,255		$40,848		$1,444		$1,481
Total:
Commercial		$18,092		$32,894		$18,518		$35,724		$1,134		$1,015
Residential real estate	4,036		4,289		4,449		4,766		256		463
Consumer	271		355		288		358		54		3
Total impaired loans		$22,399		$37,538		$23,255		$40,848		$1,444		$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 September 30,	2014		2013		2014		2013
Commercial:
Mortgages		$23,435		$29,430		$175		$192
Construction and development	—		—		—		—
Other	2,570		3,536		25		43
Residential real estate:
Mortgages	4,253		3,818		31		51
Homeowner construction	—		—		—		—
Consumer:
Home equity lines	82		173		—		2
Home equity loans	83		58		1		1
Other	117		131		2		2
Totals		$30,540		$37,146		$234		$291



(Dollars in thousands)	Average Recorded Investment				Interest Income Recognized
Nine months ended September 30,	2014		2013		2014		2013
Commercial:
Mortgages		$25,605		$26,110		$580		$444
Construction and development	—		—		—		—
Other	2,477		7,159		63		157
Residential real estate:
Mortgages	4,151		4,104		81		100
Homeowner construction	—		—		—		—
Consumer:
Home equity lines	92		209		2		6
Home equity loans	111		77		4		5
Other	120		146		6		6
Totals		$32,556		$37,805		$736		$718

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 September 30,	2014	2013	2014		2013		2014		2013
Commercial:
Mortgages	—	1		$—		$6,018		$—		$4,909
Construction and development	—	—	—		—		—		—
Other	1	2	63		30		63		30
Residential real estate:
Mortgages	1	—	264		—		264		—
Homeowner construction	—	—	—		—		—		—
Consumer:
Home equity lines	—	—	—		—		—		—
Home equity loans	—	—	—		—		—		—
Other	—	—	—		—		—		—
Totals	2	3		$327		$6,048		$327		$4,939



(Dollars in thousands)			Outstanding Recorded Investment (1)
	# of Loans		Pre-Modifications				Post-Modifications
Nine months ended September 30,	2014	2013	2014		2013		2014		2013
Commercial:
Mortgages	—	6		$—		$15,974		$—		$14,785
Construction and development	—	—	—		—		—		—
Other	10	7	826		1,198		826		1,198
Residential real estate:
Mortgages	3	—	743		—		743		—
Homeowner construction	—	—	—		—		—		—
Consumer:
Home equity lines	—	1	—		92		—		92
Home equity loans	—	—	—		—		—		—
Other	—	—	—		—		—		—
Totals	13	14		$1,569		$17,264		$1,569		$16,075


(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				Nine months
Periods ended September 30,	2014		2013		2014		2013
Below-market interest rate concession		$—		$6,018		$77		$15,836
Payment deferral	63		—		542		—
Maturity / amortization concession	—		21		599		21
Interest only payments	—		9		—		424
Combination (1)	264		—		351		983
Total		$327		$6,048		$1,569		$17,264


(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 September 30,	2014	2013	2014		2013
Commercial:
Mortgages	—	1		$—		$482
Construction and development	—	—	—		—
Other	3	—	426		—
Residential real estate:
Mortgages	—	—	—		—
Homeowner construction	—	—	—		—
Consumer:
Home equity lines	—	—	—		—
Home equity loans	—	—	—		—
Other	—	—	—		—
Totals	3	1		$426		$482



(Dollars in thousands)	# of Loans		Recorded Investment (1)
Nine months ended September 30,	2014	2013	2014		2013
Commercial:
Mortgages	—	1		$—		$482
Construction and development	—	—	—		—
Other	5	—	666		—
Residential real estate:
Mortgages	—	—	—		—
Homeowner construction	—	—	—		—
Consumer:
Home equity lines	—	—	—		—
Home equity loans	—	—	—		—
Other	—	—	—		—
Totals	5	1		$666		$482


(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
	Sep 30, 2014		Dec 31, 2013		Sep 30, 2014		Dec 31, 2013		Sep 30, 2014		Dec 31, 2013
Mortgages		$736,646		$756,838		$23,305		$23,185		$6,752		$16,226
Construction and development	58,750		36,289		—		—		—		—
Other	546,663		507,962		14,317		19,887		3,940		2,948
Total commercial loans		$1,342,059		$1,301,089		$37,622		$43,072		$10,692		$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)	Current and Under 90 Days Past Due				Over 90 Days Past Due
	Sep 30, 2014		Dec 31, 2013		Sep 30, 2014		Dec 31, 2013
Residential real estate:
Accruing mortgages		$905,066		$740,848		$—		$—
Nonaccrual mortgages	3,968		2,682		3,922		5,633
Homeowner construction	32,624		23,511		—		—
Total residential real estate loans		$941,658		$767,041		$3,922		$5,633
Consumer:
Home equity lines		$239,715		$231,093		$852		$269
Home equity loans	46,319		39,864		136		348
Other	51,071		55,262		1		39
Total consumer loans		$337,105		$326,219		$989		$656