Loans (Tables)

9 Months Ended

Sep. 30, 2015

The following is a summary of loans:



(Dollars in thousands)	September 30, 2015				December 31, 2014
	Amount		%		Amount		%
Commercial:
Mortgages (1)		$873,767	30	%		$843,978	30	%
Construction & development (2)	121,857		4		79,592		3
Commercial & industrial (3)	584,230		20		611,918		21
Total commercial	1,579,854		54		1,535,488		54
Residential real estate:
Mortgages	994,808		34		948,731		33
Homeowner construction	29,406		1		36,684		1
Total residential real estate	1,024,214		35		985,415		34
Consumer:
Home equity lines	252,862		9		242,480		8
Home equity loans	47,610		2		46,967		2
Other (4)	45,378		—		48,926		2
Total consumer	345,850		11		338,373		12
Total loans (5)		$2,949,918	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 $2.7 million and $2.1 million, respectively, and net unamortized premiums on purchased loans of $87 thousand and $94 thousand, respectively, at September 30, 2015 and December 31, 2014.

Nonaccrual Loans

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



(Dollars in thousands)	Sep 30, 2015		Dec 31, 2014
Commercial:
Mortgages		$4,915		$5,315
Construction & development	—		—
Commercial & industrial	1,137		1,969
Residential real estate:
Mortgages	9,472		7,124
Homeowner construction	—		—
Consumer:
Home equity lines	197		1,217
Home equity loans	1,120		317
Other	3		3
Total nonaccrual loans		$16,844		$15,945
Accruing loans 90 days or more past due		$—		$—

As of September 30, 2015 and December 31, 2014, nonaccrual loans of $2.9 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
September 30, 2015	30-59		60-89		Over 90		Total Past Due		Current		Total Loans
Commercial:
Mortgages		$147		$—		$4,915		$5,062		$868,705		$873,767
Construction & development	—		—		—		—		121,857		121,857
Commercial & industrial	162		3,455		720		4,337		579,893		584,230
Residential real estate:
Mortgages	3,610		2,458		4,499		10,567		984,241		994,808
Homeowner construction	—		—		—		—		29,406		29,406
Consumer:
Home equity lines	688		201		40		929		251,933		252,862
Home equity loans	196		135		567		898		46,712		47,610
Other	15		2		1		18		45,360		45,378
Total loans		$4,818		$6,251		$10,742		$21,811		$2,928,107		$2,949,918



(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 September 30, 2015 and December 31, 2014, were nonaccrual loans of $14.0 million and $12.7 million, respectively. All loans 90 days or more past due at September 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
	Sep 30, 2015		Dec 31, 2014		Sep 30, 2015		Dec 31, 2014		Sep 30, 2015		Dec 31, 2014
No Related Allowance Recorded:
Commercial:
Mortgages		$205		$432		$205		$432		$—		$—
Construction & development	—		—		—		—		—		—
Commercial & industrial	1,153		1,047		1,172		1,076		—		—
Residential real estate:
Mortgages	5,754		1,477		6,037		1,768		—		—
Homeowner construction	—		—		—		—		—		—
Consumer:
Home equity lines	147		—		147		—		—		—
Home equity loans	149		—		149		—		—		—
Other	—		—		—		—		—		—
Subtotal	7,408		2,956		7,710		3,276		—		—
With Related Allowance Recorded:
Commercial:
Mortgages		$15,373		$14,585		$15,753		$14,564		$1,256		$927
Construction & development	—		—		—		—		—		—
Commercial & industrial	2,075		1,878		2,614		2,437		186		177
Residential real estate:
Mortgages	4,395		2,226		4,474		2,338		312		326
Homeowner construction	—		—		—		—		—		—
Consumer:
Home equity lines	131		250		223		250		5		141
Home equity loans	1,099		45		1,249		62		57		12
Other	150		112		149		114		1		—
Subtotal	23,223		19,096		24,462		19,765		1,817		1,583
Total impaired loans		$30,631		$22,052		$32,172		$23,041		$1,817		$1,583
Total:
Commercial		$18,806		$17,942		$19,744		$18,509		$1,442		$1,104
Residential real estate	10,149		3,703		10,511		4,106		312		326
Consumer	1,676		407		1,917		426		63		153
Total impaired loans		$30,631		$22,052		$32,172		$23,041		$1,817		$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 September 30,	2015		2014		2015		2014
Commercial:
Mortgages		$14,583		$23,435		$82		$175
Construction & development	—		—		—		—
Commercial & industrial	3,376		2,570		29		25
Residential real estate:
Mortgages	4,484		4,253		27		31
Homeowner construction	—		—		—		—
Consumer:
Home equity lines	157		82		1		—
Home equity loans	515		83		3		1
Other	354		117		2		2
Totals		$23,469		$30,540		$144		$234



(Dollars in thousands)	Average Recorded Investment				Interest Income Recognized
Nine months ended September 30,	2015		2014		2015		2014
Commercial:
Mortgages		$14,692		$25,605		$237		$580
Construction & development	—		—		—		—
Commercial & industrial	3,164		2,477		89		63
Residential real estate:
Mortgages	3,735		4,151		67		81
Homeowner construction	—		—		—		—
Consumer:
Home equity lines	227		92		1		2
Home equity loans	224		111		4		4
Other	231		120		7		6
Totals		$22,273		$32,556		$405		$736

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 September 30,	2015	2014	2015		2014		2015		2014
Commercial:
Mortgages	1	—		$1,190		$—		$1,190		$—
Construction & development	—	—	—		—		—		—
Commercial & industrial	—	1	—		63		—		63
Residential real estate:
Mortgages	2	1	526		264		526		264
Homeowner construction	—	—	—		—		—		—
Totals	3	2		$1,716		$327		$1,716		$327


(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
Nine months ended September 30,	2015	2014	2015		2014		2015		2014
Commercial:
Mortgages	1	—		$1,190		$—		$1,190		$—
Construction & development	—	—	—		—		—		—
Commercial & industrial	3	10	584		826		584		826
Residential real estate:
Mortgages	3	3	619		743		619		743
Homeowner construction	—	—	—		—		—		—
Consumer:
Home equity lines	—	—	—		—		—		—
Home equity loans	1	—	70		—		70		—
Other	1	—	35		—		35		—
Totals	9	13		$2,498		$1,569		$2,498		$1,569


(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				Nine months
Periods ended September 30,	2015		2014		2015		2014
Below-market interest rate concession		$—		$—		$—		$77
Payment deferral	526		63		1,145		542
Maturity / amortization concession	—		—		163		599
Interest only payments	—		—		—		—
Combination (1)	1,190		264		1,190		351
Total		$1,716		$327		$2,498		$1,569


(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
	Sep 30, 2015		Dec 31, 2014		Sep 30, 2015		Dec 31, 2014		Sep 30, 2015		Dec 31, 2014
Mortgages		$856,114		$819,857		$12,542		$18,372		$5,111		$5,749
Construction & development	121,857		79,592		—		—		—		—
Commercial & industrial	563,933		592,206		15,474		16,311		4,823		3,401
Total commercial loans		$1,541,904		$1,491,655		$28,016		$34,683		$9,934		$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
	Sep 30, 2015		Dec 31, 2014		Sep 30, 2015		Dec 31, 2014
Residential real estate:
Accruing mortgages		$985,336		$941,607		$—		$—
Nonaccrual mortgages	4,973		3,840		4,499		3,284
Homeowner construction	29,406		36,684		—		—
Total residential loans		$1,019,715		$982,131		$4,499		$3,284
Consumer:
Home equity lines		$252,822		$241,639		$40		$841
Home equity loans	47,043		46,911		567		56
Other	45,377		48,926		1		—
Total consumer loans		$345,242		$337,476		$608		$897