Loans (Tables)

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

Summary of Loans

The following is a summary of loans:

(Dollars in thousands)	December 31, 2014				December 31, 2013
	Amount		%		Amount		%
Commercial:
Mortgages (1)		$843,978	30	%		$796,249	32	%
Construction & development (2)	79,592		3		36,289		1
Commercial & industrial (3)	611,918		21		530,797		22
Total commercial	1,535,488		54		1,363,335		55
Residential real estate:
Mortgages	948,731		33		749,163		30
Homeowner construction	36,684		1		23,511		1
Total residential real estate	985,415		34		772,674		31
Consumer:
Home equity lines	242,480		8		231,362		9
Home equity loans	46,967		2		40,212		2
Other (4)	48,926		2		55,301		3
Total consumer	338,373		12		326,875		14
Total loans (5)		$2,859,276	100	%		$2,462,884	100	%

(1) Loans primarily secured by income producing property.

(2) Loans for construction of 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) Consumer installment loans and loans secured by general aviation aircraft and automobiles.

(5) Includes net unamortized loan origination costs of $2.1 million and $879 thousand, respectively, and net unamortized premiums on purchased loans of $94 thousand and $99 thousand, respectively, at December 31, 2014 and 2013.

Nonaccrual Loans

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

(Dollars in thousands)
December 31,	2014		2013
Commercial:
Mortgages		$5,315		$7,492
Construction & development	—		—
Commercial & industrial	1,969		1,291
Residential real estate:
Mortgages	7,124		8,315
Homeowner construction	—		—
Consumer:
Home equity lines	1,217		469
Home equity loans	317		687
Other	3		48
Total nonaccrual loans		$15,945		$18,302
Accruing loans 90 days or more past due		$—		$—

Past Due Loans

The following tables present an aging analysis of past due loans, segregated by class of loans:

(Dollars in thousands)	Days Past Due
December 31, 2014	30-59		60-89		Over 90		Total Past Due		Current		Total Loans
Commercial:
Mortgages		$—		$—		$5,315		$5,315		$838,663		$843,978
Construction & development	—		—		—		—		79,592		79,592
Commercial & industrial	2,136		1,202		181		3,519		608,399		611,918
Residential real estate:
Mortgages	2,943		821		3,284		7,048		941,683		948,731
Homeowner construction	—		—		—		—		36,684		36,684
Consumer:
Home equity lines	570		100		841		1,511		240,969		242,480
Home equity loans	349		240		56		645		46,322		46,967
Other	35		5		—		40		48,886		48,926
Total loans		$6,033		$2,368		$9,677		$18,078		$2,841,198		$2,859,276

(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 & development	—		—		—		—		36,289		36,289
Commercial & industrial	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

Impaired Loans

The following is a summary of impaired loans:

(Dollars in thousands)
	Recorded Investment (1)				Unpaid Principal				Related Allowance
December 31,	2014		2013		2014		2013		2014		2013
No Related Allowance Recorded:
Commercial:
Mortgages		$432		$998		$432		$998		$—		$—
Construction & development	—		—		—		—		—		—
Commercial & industrial	1,047		1,055		1,076		1,050		—		—
Residential real estate:
Mortgages	1,477		1,167		1,768		1,259		—		—
Homeowner construction	—		—		—		—		—		—
Consumer:
Home equity lines	—		—		—		—		—		—
Home equity loans	—		—		—		—		—		—
Other	—		—		—		—		—		—
Subtotal	2,956		3,220		3,276		3,307		—		—
With Related Allowance Recorded:
Commercial:
Mortgages	14,585		29,335		14,564		31,731		927		552
Construction & development	—		—		—		—		—		—
Commercial & industrial	1,878		1,506		2,437		1,945		177		463
Residential real estate:
Mortgages	2,226		3,122		2,338		3,507		326		463
Homeowner construction	—		—		—		—		—		—
Consumer:
Home equity lines	250		173		250		174		141		1
Home equity loans	45		55		62		54		12		—
Other	112		127		114		130		—		2
Subtotal	19,096		34,318		19,765		37,541		1,583		1,481
Total impaired loans		$22,052		$37,538		$23,041		$40,848		$1,583		$1,481
Total:
Commercial		$17,942		$32,894		$18,509		$35,724		$1,104		$1,015
Residential real estate	3,703		4,289		4,106		4,766		326		463
Consumer	407		355		426		358		153		3
Total impaired loans		$22,052		$37,538		$23,041		$40,848		$1,583		$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:

(Dollars in thousands)
	Average Recorded Investment						Interest Income Recognized
Years ended December 31,	2014		2013		2012		2014		2013		2012
Commercial:
Mortgages		$22,971		$27,496		$10,785		$658		$630		$273
Construction & development	—		—		—		—		—		—
Commercial & industrial	2,499		6,029		10,661		126		190		297
Residential real estate:
Mortgages	4,006		4,024		4,651		101		125		88
Homeowner construction	—		—		—		—		—		—
Consumer:
Home equity lines	97		200		172		2		7		3
Home equity loans	100		72		131		4		6		7
Other	119		146		151		8		9		11
Totals		$29,792		$37,967		$26,551		$899		$967		$679

Troubled Debt Restructurings

The following table presents loans modified as a troubled debt restructuring:

(Dollars in thousands)			Outstanding Recorded Investment (1)
	# of Loans		Pre-Modifications				Post-Modifications
Years ended December 31,	2014	2013	2014		2013		2014		2013
Commercial:
Mortgages	—	6		$—		$15,974		$—		$14,785
Construction & development	—	—	—		—		—		—
Commercial & industrial	12	7	1,191		1,198		1,191		1,198
Residential real estate:
Mortgages	4	1	992		570		992		570
Homeowner construction	—	—	—		—		—		—
Consumer:
Home equity lines	—	1	—		92		—		92
Home equity loans	—	—	—		—		—		—
Other	—	—	—		—		—		—
Totals	16	15		$2,183		$17,834		$2,183		$16,645

(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:

(Dollars in thousands)
Years ended December 31,	2014		2013
Below-market interest rate concession		$77		$15,836
Payment deferral	791		570
Maturity / amortization concession	964		21
Interest only payments	—		424
Combination (1)	351		983
Total		$2,183		$17,834

(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:

(Dollars in thousands)
	# of Loans		Recorded Investment (1)
Years ended December 31,	2014	2013	2014		2013
Commercial:
Mortgages	—	1		$—		$232
Construction & development	—	—	—		—
Commercial & industrial	7	2	669		839
Residential real estate:
Mortgages	—	—	—		—
Homeowner construction	—	—	—		—
Consumer:
Home equity lines	—	—	—		—
Home equity loans	—	—	—		—
Other	—	—	—		—
Totals	7	3		$669		$1,071

(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
December 31,	2014		2013		2014		2013		2014		2013
Mortgages		$819,857		$756,838		$18,372		$23,185		$5,749		$16,226
Construction & development	79,592		36,289		—		—		—		—
Commercial & industrial	592,206		507,962		16,311		19,887		3,401		2,948
Total commercial loans		$1,491,655		$1,301,089		$34,683		$43,072		$9,150		$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
December 31,	2014		2013		2014		2013
Residential real estate:
Accruing mortgages		$941,607		$740,848		$—		$—
Nonaccrual mortgages	3,840		2,682		3,284		5,633
Homeowner construction	36,684		23,511		—		—
Total residential loans		$982,131		$767,041		$3,284		$5,633
Consumer:
Home equity lines		$241,639		$231,093		$841		$269
Home equity loans	46,911		39,864		56		348
Other	48,926		55,262		—		39
Total consumer loans		$337,476		$326,219		$897		$656

Analysis of Loan Servicing Rights

The following table presents an analysis of loan servicing rights:

(Dollars in thousands)	Loan Servicing Rights			Valuation Allowance			Total
Balance at December 31, 2011		$937			($172	)		$765
Loan servicing rights capitalized	569			—			569
Amortization	(231		)	—			(231		)
Decrease in impairment reserve	—			7			7
Balance at December 31, 2012	1,275			(165		)	1,110
Loan servicing rights capitalized	1,897			—			1,897
Amortization	(405		)	—			(405		)
Decrease in impairment reserve	—			96			96
Balance at December 31, 2013	2,767			(69		)	2,698
Loan servicing rights capitalized	869			—			869
Amortization	(647		)	—			(647		)
Decrease in impairment reserve	—			67			67
Balance at December 31, 2014		$2,989			($2	)		$2,987

Amortization Expense Related to Loan Servicing Assets

The following table presents estimated aggregate amortization expense related to loan servicing assets:

(Dollars in thousands)
Years ending December 31:	2015		$457
	2016	385
	2017	325
	2018	274
	2019	231
	Thereafter	1,317
Total estimated amortization expense			$2,989

Loans Serviced for Others, by Type of Loan

The following table presents the balance of loans serviced for others, by type of loan:

(Dollars in thousands)
December 31,	2014		2013
Residential mortgages		$378,798		$310,699
Commercial loans	90,484		69,526
Total		$469,282		$380,225