Loans (Tables)

3 Months Ended

Mar. 31, 2015

The following is a summary of loans:



(Dollars in thousands)	March 31, 2015				December 31, 2014
	Amount		%		Amount		%
Commercial:
Mortgages (1)		$865,042	30	%		$843,978	30	%
Construction & development (2)	89,851		3		79,592		3
Commercial & industrial (3)	604,630		21		611,918		21
Total commercial	1,559,523		54		1,535,488		54
Residential real estate:
Mortgages	954,905		33		948,731		33
Homeowner construction	32,659		1		36,684		1
Total residential real estate	987,564		34		985,415		34
Consumer:
Home equity lines	239,537		8		242,480		8
Home equity loans	46,727		2		46,967		2
Other (4)	47,241		2		48,926		2
Total consumer	333,505		12		338,373		12
Total loans (5)		$2,880,592	100	%		$2,859,276	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 $2.2 million and $2.1 million, respectively, and net unamortized premiums on purchased loans of $92 thousand and $94 thousand, respectively, at March 31, 2015 and December 31, 2014.

Nonaccrual Loans

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



(Dollars in thousands)	Mar 31, 2015		Dec 31, 2014
Commercial:
Mortgages		$5,115		$5,315
Construction & development	—		—
Commercial & industrial	2,193		1,969
Residential real estate:
Mortgages	6,956		7,124
Homeowner construction	—		—
Consumer:
Home equity lines	1,051		1,217
Home equity loans	511		317
Other	39		3
Total nonaccrual loans		$15,865		$15,945
Accruing loans 90 days or more past due		$—		$—

As of March 31, 2015 and December 31, 2014, nonaccrual loans of $3.6 million and $3.2 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, 2015	30-59		60-89		Over 90		Total Past Due		Current		Total Loans
Commercial:
Mortgages		$497		$61		$5,115		$5,673		$859,369		$865,042
Construction & development	—		—		—		—		89,851		89,851
Commercial & industrial	229		229		721		1,179		603,451		604,630
Residential real estate:
Mortgages	4,470		1,352		3,607		9,429		945,476		954,905
Homeowner construction	—		—		—		—		32,659		32,659
Consumer:
Home equity lines	1,244		429		463		2,136		237,401		239,537
Home equity loans	213		111		255		579		46,148		46,727
Other	55		25		5		85		47,156		47,241
Total loans		$6,708		$2,207		$10,166		$19,081		$2,861,511		$2,880,592



(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

Included in past due loans as of March 31, 2015 and December 31, 2014, were nonaccrual loans of $12.3 million and $12.7 million, respectively. All loans 90 days or more past due at March 31, 2015 and December 31, 2014 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, 2015		Dec 31, 2014		Mar 31, 2015		Dec 31, 2014		Mar 31, 2015		Dec 31, 2014
No Related Allowance Recorded:
Commercial:
Mortgages		$205		$432		$205		$432		$—		$—
Construction & development	—		—		—		—		—		—
Commercial & industrial	1,322		1,047		1,323		1,076		—		—
Residential real estate:
Mortgages	1,618		1,477		1,912		1,768		—		—
Homeowner construction	—		—		—		—		—		—
Consumer:
Home equity lines	—		—		—		—		—		—
Home equity loans	—		—		—		—		—		—
Other	—		—		—		—		—		—
Subtotal	3,145		2,956		3,440		3,276		—		—
With Related Allowance Recorded:
Commercial:
Mortgages		$14,384		$14,585		$14,564		$14,564		$1,173		$927
Construction & development	—		—		—		—		—		—
Commercial & industrial	1,754		1,878		2,305		2,437		185		177
Residential real estate:
Mortgages	1,296		2,226		1,423		2,338		222		326
Homeowner construction	—		—		—		—		—		—
Consumer:
Home equity lines	244		250		250		250		76		141
Home equity loans	72		45		116		62		1		12
Other	151		112		151		114		—		—
Subtotal	17,901		19,096		18,809		19,765		1,657		1,583
Total impaired loans		$21,046		$22,052		$22,249		$23,041		$1,657		$1,583
Total:
Commercial		$17,665		$17,942		$18,397		$18,509		$1,358		$1,104
Residential real estate	2,914		3,703		3,335		4,106		222		326
Consumer	467		407		517		426		77		153
Total impaired loans		$21,046		$22,052		$22,249		$23,041		$1,657		$1,583

(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
Three months ended March 31,	2015		2014		2015		2014
Commercial:
Mortgages		$14,942		$28,340		$79		$165
Construction & development	—		—		—		—
Commercial & industrial	3,036		2,366		19		23
Residential real estate:
Mortgages	3,457		3,744		16		14
Homeowner construction	—		—		—		—
Consumer:
Home equity lines	247		134		—		1
Home equity loans	74		95		—		1
Other	146		125		3		2
Totals		$21,902		$34,804		$117		$206

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
Three months ended March 31,	2015	2014	2015		2014		2015		2014
Commercial:
Mortgages	—	—		$—		$—		$—		$—
Construction & development	—	—	—		—		—		—
Commercial & industrial	1	—	300		—		300		—
Residential real estate:
Mortgages	1	2	93		479		93		479
Homeowner construction	—	—	—		—		—		—
Consumer:
Home equity lines	—	—	—		—		—		—
Home equity loans	—	—	—		—		—		—
Other	1	—	35		—		35		—
Totals	3	2		$428		$479		$428		$479


(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)
Three months ended March 31,	2015		2014
Below-market interest rate concession		$335		$—
Payment deferral	93		479
Maturity / amortization concession	—		—
Interest only payments	—		—
Combination (1)	—		—
Total		$428		$479


(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)
Three months ended March 31,	2015	2014	2015		2014
Commercial:
Mortgages	—	—		$—		$—
Construction & development	—	—	—		—
Commercial & industrial	2	6	11		1,191
Residential real estate:
Mortgages	2	—	338		—
Homeowner construction	—	—	—		—
Consumer:
Home equity lines	—	—	—		—
Home equity loans	—	—	—		—
Other	—	—	—		—
Totals	4	6		$349		$1,191


(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, 2015		Dec 31, 2014		Mar 31, 2015		Dec 31, 2014		Mar 31, 2015		Dec 31, 2014
Mortgages		$842,516		$819,857		$17,207		$18,372		$5,319		$5,749
Construction & development	89,851		79,592		—		—		—		—
Commercial & industrial	586,370		592,206		15,536		16,311		2,724		3,401
Total commercial loans		$1,518,737		$1,491,655		$32,743		$34,683		$8,043		$9,150

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
	Mar 31, 2015		Dec 31, 2014		Mar 31, 2015		Dec 31, 2014
Residential real estate:
Accruing mortgages		$947,949		$941,607		$—		$—
Nonaccrual mortgages	3,349		3,840		3,607		3,284
Homeowner construction	32,659		36,684		—		—
Total residential loans		$983,957		$982,131		$3,607		$3,284
Consumer:
Home equity lines		$239,074		$241,639		$463		$841
Home equity loans	46,472		46,911		255		56
Other	47,236		48,926		5		—
Total consumer loans		$332,782		$337,476		$723		$897