Loans (Tables)

6 Months Ended

Jun. 30, 2015

The following is a summary of loans:



(Dollars in thousands)	June 30, 2015				December 31, 2014
	Amount		%		Amount		%
Commercial:
Mortgages (1)		$876,589	30	%		$843,978	30	%
Construction & development (2)	110,989		4		79,592		3
Commercial & industrial (3)	595,959		20		611,918		21
Total commercial	1,583,537		54		1,535,488		54
Residential real estate:
Mortgages	971,705		33		948,731		33
Homeowner construction	29,558		1		36,684		1
Total residential real estate	1,001,263		34		985,415		34
Consumer:
Home equity lines	249,845		9		242,480		8
Home equity loans	47,437		2		46,967		2
Other (4)	46,502		1		48,926		2
Total consumer	343,784		12		338,373		12
Total loans (5)		$2,928,584	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 $2.5 million and $2.1 million, respectively, and net unamortized premiums on purchased loans of $91 thousand and $94 thousand, respectively, at June 30, 2015 and December 31, 2014.

Nonaccrual Loans

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



(Dollars in thousands)	Jun 30, 2015		Dec 31, 2014
Commercial:
Mortgages		$4,915		$5,315
Construction & development	—		—
Commercial & industrial	1,039		1,969
Residential real estate:
Mortgages	7,411		7,124
Homeowner construction	—		—
Consumer:
Home equity lines	526		1,217
Home equity loans	960		317
Other	280		3
Total nonaccrual loans		$15,131		$15,945
Accruing loans 90 days or more past due		$—		$—

As of June 30, 2015 and December 31, 2014, nonaccrual loans of $2.7 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
June 30, 2015	30-59		60-89		Over 90		Total Past Due		Current		Total Loans
Commercial:
Mortgages		$14		$—		$4,915		$4,929		$871,660		$876,589
Construction & development	—		—		—		—		110,989		110,989
Commercial & industrial	2,581		2,299		638		5,518		590,441		595,959
Residential real estate:
Mortgages	5,120		913		4,871		10,904		960,801		971,705
Homeowner construction	—		—		—		—		29,558		29,558
Consumer:
Home equity lines	1,098		74		50		1,222		248,623		249,845
Home equity loans	527		315		348		1,190		46,247		47,437
Other	9		8		249		266		46,236		46,502
Total loans		$9,349		$3,609		$11,071		$24,029		$2,904,555		$2,928,584



(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 June 30, 2015 and December 31, 2014, were nonaccrual loans of $12.4 million and $12.7 million, respectively. All loans 90 days or more past due at June 30, 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
	Jun 30, 2015		Dec 31, 2014		Jun 30, 2015		Dec 31, 2014		Jun 30, 2015		Dec 31, 2014
No Related Allowance Recorded:
Commercial:
Mortgages		$205		$432		$205		$432		$—		$—
Construction & development	—		—		—		—		—		—
Commercial & industrial	1,454		1,047		1,479		1,076		—		—
Residential real estate:
Mortgages	1,596		1,477		1,893		1,768		—		—
Homeowner construction	—		—		—		—		—		—
Consumer:
Home equity lines	—		—		—		—		—		—
Home equity loans	—		—		—		—		—		—
Other	—		—		—		—		—		—
Subtotal	3,255		2,956		3,577		3,276		—		—
With Related Allowance Recorded:
Commercial:
Mortgages		$14,183		$14,585		$14,564		$14,564		$1,177		$927
Construction & development	—		—		—		—		—		—
Commercial & industrial	1,795		1,878		2,113		2,437		69		177
Residential real estate:
Mortgages	1,509		2,226		1,552		2,338		233		326
Homeowner construction	—		—		—		—		—		—
Consumer:
Home equity lines	311		250		317		250		72		141
Home equity loans	88		45		107		62		—		12
Other	397		112		397		114		102		—
Subtotal	18,283		19,096		19,050		19,765		1,653		1,583
Total impaired loans		$21,538		$22,052		$22,627		$23,041		$1,653		$1,583
Total:
Commercial		$17,637		$17,942		$18,361		$18,509		$1,246		$1,104
Residential real estate	3,105		3,703		3,445		4,106		233		326
Consumer	796		407		821		426		174		153
Total impaired loans		$21,538		$22,052		$22,627		$23,041		$1,653		$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 tables present 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 June 30,	2015		2014		2015		2014
Commercial:
Mortgages		$14,556		$25,093		$76		$240
Construction & development	—		—		—		—
Commercial & industrial	3,077		2,492		41		15
Residential real estate:
Mortgages	3,251		4,452		24		36
Homeowner construction	—		—		—		—
Consumer:
Home equity lines	278		60		—		—
Home equity loans	78		157		1		2
Other	191		118		2		2
Totals		$21,431		$32,372		$144		$295



(Dollars in thousands)	Average Recorded Investment				Interest Income Recognized
Six months ended June 30,	2015		2014		2015		2014
Commercial:
Mortgages		$14,748		$26,707		$155		$405
Construction & development	—		—		—		—
Commercial & industrial	3,057		2,429		60		38
Residential real estate:
Mortgages	3,354		4,100		40		50
Homeowner construction	—		—		—		—
Consumer:
Home equity lines	263		97		—		2
Home equity loans	76		126		1		3
Other	169		122		5		4
Totals		$21,667		$33,581		$261		$502

Troubled Debt Restructurings

The following tables present loans modified as a troubled debt restructuring:




(Dollars in thousands)			Outstanding Recorded Investment (1)
	# of Loans		Pre-Modifications				Post-Modifications
Three months ended June 30,	2015	2014	2015		2014		2015		2014
Commercial:
Mortgages	—	—		$—		$—		$—		$—
Construction & development	—	—	—		—		—		—
Commercial & industrial	2	9	284		763		284		763
Residential real estate:
Mortgages	—	—	—		—		—		—
Homeowner construction	—	—	—		—		—		—
Consumer:
Home equity lines	—	—	—		—		—		—
Home equity loans	1	—	70		—		70		—
Other	—	—	—		—		—		—
Totals	3	9		$354		$763		$354		$763


(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.



(Dollars in thousands)			Outstanding Recorded Investment (1)
	# of Loans		Pre-Modifications				Post-Modifications
Six months ended June 30,	2015	2014	2015		2014		2015		2014
Commercial:
Mortgages	—	—		$—		$—		$—		$—
Construction & development	—	—	—		—		—		—
Commercial & industrial	3	9	584		763		584		763
Residential real estate:
Mortgages	1	2	93		479		93		479
Homeowner construction	—	—	—		—		—		—
Consumer:
Home equity lines	—	—	—		—		—		—
Home equity loans	1	—	70		—		70		—
Other	1	—	35		—		35		—
Totals	6	11		$782		$1,242		$782		$1,242


(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 presents information on how loans were modified as a troubled debt restructuring:



(Dollars in thousands)
	Three months				Six months
Periods ended June 30,	2015		2014		2015		2014
Below-market interest rate concession		$—		$77		$—		$77
Payment deferral	284		—		619		479
Maturity / amortization concession	70		599		163		599
Interest only payments	—		—		—		—
Combination (1)	—		87		—		87
Total		$354		$763		$782		$1,242


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

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, 2015		Dec 31, 2014		Jun 30, 2015		Dec 31, 2014		Jun 30, 2015		Dec 31, 2014
Mortgages		$858,908		$819,857		$12,566		$18,372		$5,115		$5,749
Construction & development	110,989		79,592		—		—		—		—
Commercial & industrial	570,867		592,206		22,318		16,311		2,774		3,401
Total commercial loans		$1,540,764		$1,491,655		$34,884		$34,683		$7,889		$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
	Jun 30, 2015		Dec 31, 2014		Jun 30, 2015		Dec 31, 2014
Residential real estate:
Accruing mortgages		$964,294		$941,607		$—		$—
Nonaccrual mortgages	2,540		3,840		4,871		3,284
Homeowner construction	29,558		36,684		—		—
Total residential loans		$996,392		$982,131		$4,871		$3,284
Consumer:
Home equity lines		$249,795		$241,639		$50		$841
Home equity loans	47,089		46,911		348		56
Other	46,253		48,926		249		—
Total consumer loans		$343,137		$337,476		$647		$897