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Loans (Tables)
 12 Months Ended
Dec. 31, 2017
Receivables [Abstract]  
Summary of Loans
The following is a summary of loans:
(Dollars in thousands)
December 31, 2017
 
December 31, 2016
 
Amount

 
%

 
Amount

 
%

Commercial:
 
 
 
 
 
 
 
Mortgages (1)

$1,072,487

 
32
%
 

$1,074,186

 
33
%
Construction & development (2)
138,008

 
4

 
121,371

 
4

Commercial & industrial (3)
612,334

 
18

 
576,109

 
18

Total commercial
1,822,829

 
54

 
1,771,666

 
55

Residential real estate:
 
 
 
 
 
 
 
Mortgages
1,206,458

 
35

 
1,094,824

 
34

Homeowner construction
20,790

 
1

 
27,924

 
1

Total residential real estate
1,227,248

 
36

 
1,122,748

 
35

Consumer:
 
 
 
 
 
 
 
Home equity lines
258,114

 
8

 
264,200

 
8

Home equity loans
34,353

 
1

 
37,272

 
1

Other (4)
31,527

 
1

 
38,485

 
1

Total consumer
323,994

 
10

 
339,957

 
10

Total loans (5)

$3,374,071

 
100
%
 

$3,234,371

 
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)
Loans to individuals secured by general aviation aircraft and other personal installment loans.
(5)
Includes net unamortized loan origination costs of $3.8 million and $3.0 million, respectively, and net unamortized premiums on purchased loans of $878 thousand and $783 thousand, respectively, at December 31, 2017 and 2016.
Nonaccrual Loans
The following is a summary of nonaccrual loans, segregated by class of loans:
(Dollars in thousands)
 
 
 
December 31,
2017

 
2016

Commercial:
 
 
 
Mortgages

$4,954

 

$7,811

Construction & development
—

 
—

Commercial & industrial
283

 
1,337

Residential real estate:
 
 
 
Mortgages
9,414

 
11,736

Homeowner construction
—

 
—

Consumer:
 
 
 
Home equity lines
81

 
—

Home equity loans
463

 
1,058

Other
16

 
116

Total nonaccrual loans

$15,211

 

$22,058

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, 2017
30-59
 
60-89
 
Over 90
 
Total Past Due
 
Current
 
Total Loans
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Mortgages

$6

 

$—

 

$4,954

 

$4,960

 

$1,067,527

 

$1,072,487

Construction & development
—

 
—

 
—

 
—

 
138,008

 
138,008

Commercial & industrial
3,793

 
2

 
281

 
4,076

 
608,258

 
612,334

Residential real estate:
 
 
 
 
 
 
 

 
 
 
 

Mortgages
1,678

 
2,274

 
3,903

 
7,855

 
1,198,603

 
1,206,458

Homeowner construction
—

 
—

 
—

 
—

 
20,790

 
20,790

Consumer:
 
 
 
 
 
 
 

 
 
 
 

Home equity lines
1,340

 
—

 
—

 
1,340

 
256,774

 
258,114

Home equity loans
1,458

 
75

 
268

 
1,801

 
32,552

 
34,353

Other
29

 
—

 
14

 
43

 
31,484

 
31,527

Total loans

$8,304

 

$2,351

 

$9,420

 

$20,075

 

$3,353,996

 

$3,374,071



(Dollars in thousands)
Days Past Due
 
 
 
 
 
 
December 31, 2016
30-59
 
60-89
 
Over 90
 
Total Past Due
 
Current
 
Total Loans
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Mortgages

$901

 

$—

 

$7,807

 

$8,708

 

$1,065,478

 

$1,074,186

Construction & development
—

 
—

 
—

 
—

 
121,371

 
121,371

Commercial & industrial
409

 
—

 
745

 
1,154

 
574,955

 
576,109

Residential real estate:
 
 
 
 
 
 
 

 
 
 
 

Mortgages
5,381

 
652

 
6,193

 
12,226

 
1,082,598

 
1,094,824

Homeowner construction
—

 
—

 
—

 
—

 
27,924

 
27,924

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Home equity lines
655

 
26

 
—

 
681

 
263,519

 
264,200

Home equity loans
776

 
76

 
658

 
1,510

 
35,762

 
37,272

Other
32

 
1

 
110

 
143

 
38,342

 
38,485

Total loans

$8,154

 

$755

 

$15,513

 

$24,422

 

$3,209,949

 

$3,234,371
Impaired Loans
The following is a summary of impaired loans:
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
Recorded Investment (1)
 
Unpaid Principal
 
Related Allowance
December 31,
2017
 
2016
 
2017
 
2016
 
2017
 
2016
No Related Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Mortgages

$—

 

$4,676

 

$—

 

$9,019

 

$—

 

$—

Construction & development
—

 
—

 
—

 
—

 
—

 
—

Commercial & industrial
4,986

 
6,458

 
5,081

 
6,550

 
—

 
—

Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
9,069

 
14,385

 
9,256

 
14,569

 
—

 
—

Homeowner construction
—

 
—

 
—

 
—

 
—

 
—

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Home equity lines
81

 
—

 
81

 
—

 
—

 
—

Home equity loans
476

 
1,137

 
476

 
1,177

 
—

 
—

Other
14

 
116

 
14

 
116

 
—

 
—

Subtotal
14,626

 
26,772

 
14,908

 
31,431

 
—

 
—

With Related Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
4,954

 
5,104

 
9,910

 
6,087

 
1,018

 
448

Construction & development
—

 
—

 
—

 
—

 
—

 
—

Commercial & industrial
191

 
662

 
212

 
699

 
1

 
3

Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
715

 
1,285

 
741

 
1,310

 
104

 
151

Homeowner construction
—

 
—

 
—

 
—

 
—

 
—

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Home equity lines
—

 
—

 
—

 
—

 
—

 
—

Home equity loans
—

 
—

 
—

 
—

 
—

 
—

Other
133

 
28

 
132

 
29

 
6

 
4

Subtotal
5,993

 
7,079

 
10,995

 
8,125

 
1,129

 
606

Total impaired loans

$20,619

 

$33,851

 

$25,903

 

$39,556

 

$1,129

 

$606

Total:
 
 
 
 
 
 
 
 
 
 
 
Commercial

$10,131

 

$16,900

 

$15,203

 

$22,355

 

$1,019

 

$451

Residential real estate
9,784

 
15,670

 
9,997

 
15,879

 
104

 
151

Consumer
704

 
1,281

 
703

 
1,322

 
6

 
4

Total impaired loans

$20,619

 

$33,851

 

$25,903

 

$39,556

 

$1,129

 

$606

(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 accruing impaired loans (troubled debt restructurings for which management has concluded that the collectability 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,
2017
 
2016
 
2015
 
2017
 
2016
 
2015
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Mortgages

$8,425

 

$13,201

 

$14,847

 

$79

 

$239

 

$327

Construction & development
—

 
—

 
—

 
—

 
—

 
—

Commercial & industrial
6,445

 
3,540

 
3,415

 
281

 
99

 
130

Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
14,571

 
12,848

 
5,423

 
444

 
322

 
147

Homeowner construction
—

 
—

 
—

 
—

 
—

 
—

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Home equity lines
79

 
354

 
228

 
7

 
10

 
1

Home equity loans
606

 
1,233

 
487

 
24

 
38

 
11

Other
143

 
147

 
210

 
10

 
11

 
10

Totals

$30,269

 

$31,323

 

$24,610

 

$845

 

$719

 

$626
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,
2017
 
2016
 
2017
 
2016
 
2017
 
2016
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
—

 
1

 

$—

 

$776

 

$—

 

$776

Construction & development
—

 
—

 
—

 
—

 
—

 
—

Commercial & industrial
—

 
9

 
—

 
6,229

 
—

 
6,229

Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
—

 
3

 
—

 
4,386

 
—

 
4,386

Homeowner construction
—

 
—

 
—

 
—

 
—

 
—

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Home equity lines
—

 
—

 
—

 
—

 
—

 
—

Home equity loans
—

 
—

 
—

 
—

 
—

 
—

Other
—

 
—

 
—

 
—

 
—

 
—

Totals
—

 
13

 

$—

 

$11,391

 

$—

 

$11,391

(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,
2017

 
2016

Below-market interest rate concession

$—

 

$—

Payment deferral
—

 
1,111

Maturity / amortization concession
—

 
683

Interest only payments
—

 
4,326

Combination (1)
—

 
5,271

Total

$—

 

$11,391

(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
December 31,
2017
 
2016
 
2017
 
2016
 
2017
 
2016
Mortgages

$1,067,373

 

$1,065,358

 

$—

 

$776

 

$5,114

 

$8,052

Construction & development
138,008

 
121,371

 
—

 
—

 
—

 
—

Commercial & industrial
592,749

 
559,416

 
9,804

 
8,938

 
9,781

 
7,755

Total commercial loans

$1,798,130

 

$1,746,145

 

$9,804

 

$9,714

 

$14,895

 

$15,807
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
 
Past Due
December 31,
2017
 
2016
 
2017
 
2016
Residential real estate:
 
 
 
 
 
 
 
Self-originated mortgages

$1,070,501

 

$954,867

 

$6,413

 

$11,017

Purchased mortgages
128,102

 
127,731

 
1,442

 
1,209

Homeowner construction
20,790

 
27,924

 
—

 
—

Total residential loans

$1,219,393

 

$1,110,522

 

$7,855

 

$12,226

Consumer:
 
 
 
 
 
 
 
Home equity lines

$256,774

 

$263,519

 

$1,340

 

$681

Home equity loans
32,552

 
35,762

 
1,801

 
1,510

Other
31,484

 
38,342

 
43

 
143

Total consumer loans

$320,810

 

$337,623

 

$3,184

 

$2,334
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, 2014

$2,989

 

($2
)
 

$2,987

Loan servicing rights capitalized
1,406

 
—

 
1,406

Amortization
(1,047
)
 
—

 
(1,047
)
Decrease in impairment reserve
—

 
1

 
1

Balance at December 31, 2015
3,348

 
(1
)
 
3,347

Loan servicing rights capitalized
1,412

 
—

 
1,412

Amortization
(1,267
)
 
—

 
(1,267
)
Decrease in impairment reserve
—

 
1

 
1

Balance at December 31, 2016
3,493

 
—

 
3,493

Loan servicing rights capitalized
1,104

 
—

 
1,104

Amortization
(984
)
 
—

 
(984
)
Decrease in impairment reserve
—

 
—

 
—

Balance at December 31, 2017

$3,613

 

$—

 

$3,613
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:
 
2018
 

$899

 
 
2019
 
675

 
 
2020
 
507

 
 
2021
 
381

 
 
2022
 
286

 
 
Thereafter
 
865

Total estimated amortization expense
 

$3,613
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,
2017

 
2016

Residential mortgages

$568,311

 

$522,766

Commercial loans
108,539

 
101,317

Total

$676,850

 

$624,083