Loans (Tables)

6 Months Ended

Jun. 30, 2018

The following is a summary of loans:



(Dollars in thousands)	June 30, 2018				December 31, 2017
	Amount		%		Amount		%
Commercial:
Commercial real estate (1)		$1,218,643	35	%		$1,210,495	36	%
Commercial & industrial (2)	632,029		18		612,334		18
Total commercial	1,850,672		53		1,822,829		54
Residential Real Estate:
Residential real estate (3)	1,327,418		38		1,227,248		36
Consumer:
Home equity	283,744		8		292,467		9
Other (4)	28,396		1		31,527		1
Total consumer	312,140		9		323,994		10
Total loans (5)		$3,490,230	100	%		$3,374,071	100	%


(1)	Commercial real estate loans consist of commercial mortgages primarily secured by income producing property, as well as construction and development loans. Construction and development loans are made to businesses for land development or the on-site construction of industrial, commercial, or residential buildings.


(2)	Commercial & industrial consist of loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate.


(3)	Residential real estate loans consist of mortgage and homeowner construction loans secured by one- to four- family residential properties.


(4)	Other consumer loans consists of loans to individuals secured by general aviation aircraft and other personal installment loans.


(5)	Includes net unamortized loan origination costs of $4.5 million and $3.8 million, respectively, at June 30, 2018 and December 31, 2017 and net unamortized premiums on purchased loans of $794 thousand and $878 thousand, respectively, at June 30, 2018 and December 31, 2017.

Past Due Loans

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



(Dollars in thousands)	Days Past Due
June 30, 2018	30-59		60-89		Over 90		Total Past Due		Current		Total Loans
Commercial:
Commercial real estate		$—		$—		$—		$—		$1,218,643		$1,218,643
Commercial & industrial	2,454		—		397		2,851		629,178		632,029
Total commercial	2,454		—		397		2,851		1,847,821		1,850,672
Residential Real Estate:
Residential real estate	6,540		1,150		3,553		11,243		1,316,175		1,327,418
Consumer:
Home equity	1,713		385		487		2,585		281,159		283,744
Other	15		1		—		16		28,380		28,396
Total consumer	1,728		386		487		2,601		309,539		312,140
Total loans		$10,722		$1,536		$4,437		$16,695		$3,473,535		$3,490,230



(Dollars in thousands)	Days Past Due
December 31, 2017	30-59		60-89		Over 90		Total Past Due		Current		Total Loans
Commercial:
Commercial real estate		$6		$—		$4,954		$4,960		$1,205,535		$1,210,495
Commercial & industrial	3,793		2		281		4,076		608,258		612,334
Total commercial	3,799		2		5,235		9,036		1,813,793		1,822,829
Residential Real Estate:
Residential real estate	1,678		2,274		3,903		7,855		1,219,393		1,227,248
Consumer:
Home equity	2,798		75		268		3,141		289,326		292,467
Other	29		—		14		43		31,484		31,527
Total consumer	2,827		75		282		3,184		320,810		323,994
Total loans		$8,304		$2,351		$9,420		$20,075		$3,353,996		$3,374,071

Impaired Loans

The following is a summary of impaired loans:



(Dollars in thousands)	Recorded Investment (1)				Unpaid Principal				Related Allowance
	Jun 30, 2018		Dec 31, 2017		Jun 30, 2018		Dec 31, 2017		Jun 30, 2018		Dec 31, 2017
No Related Allowance Recorded
Commercial:
Commercial real estate		$—		$—		$—		$—		$—		$—
Commercial & industrial	5,426		4,986		5,477		5,081		—		—
Total commercial	5,426		4,986		5,477		5,081		—		—
Residential Real Estate:
Residential real estate	9,078		9,069		9,245		9,256		—		—
Consumer:
Home equity	1,124		557		1,124		557		—		—
Other	—		14		—		14		—		—
Total consumer	1,124		571		1,124		571		—		—
Subtotal	15,628		14,626		15,846		14,908		—		—
With Related Allowance Recorded
Commercial:
Commercial real estate		$—		$4,954		$—		$9,910		$—		$1,018
Commercial & industrial	337		191		389		212		18		1
Total commercial	337		5,145		389		10,122		18		1,019
Residential Real Estate:
Residential real estate	1,495		715		1,546		741		168		104
Consumer:
Home equity	19		—		19		—		8		—
Other	34		133		34		132		4		6
Total consumer	53		133		53		132		12		6
Subtotal	1,885		5,993		1,988		10,995		198		1,129
Total impaired loans		$17,513		$20,619		$17,834		$25,903		$198		$1,129
Total:
Commercial		$5,763		$10,131		$5,866		$15,203		$18		$1,019
Residential real estate	10,573		9,784		10,791		9,997		168		104
Consumer	1,177		704		1,177		703		12		6
Total impaired loans		$17,513		$20,619		$17,834		$25,903		$198		$1,129

(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 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,	2018		2017		2018		2017
Commercial:
Commercial real estate		$—		$9,549		$—		$26
Commercial & industrial	5,983		6,864		73		76
Total commercial	5,983		16,413		73		102
Residential Real Estate:
Residential real estate	10,017		15,915		85		150
Consumer:
Home equity	1,036		697		10		10
Other	88		140		2		2
Total consumer	1,124		837		12		12
Totals		$17,124		$33,165		$170		$264




(Dollars in thousands)	Average Recorded Investment				Interest Income Recognized
Six months ended June 30,	2018		2017		2018		2017
Commercial:
Commercial real estate		$2,039		$9,664		$—		$52
Commercial & industrial	5,738		6,914		139		152
Total commercial	7,777		16,578		139		204
Residential Real Estate:
Residential real estate	9,934		16,076		197		272
Consumer:
Home equity	853		832		19		20
Other	116		142		5		6
Total consumer	969		974		24		26
Totals		$18,680		$33,628		$360		$502

Nonaccrual Loans

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



(Dollars in thousands)	Jun 30, 2018		Dec 31, 2017
Commercial:
Commercial real estate		$—		$4,954
Commercial & industrial	397		283
Total commercial	397		5,237
Residential Real Estate:
Residential real estate	10,206		9,414
Consumer:
Home equity	1,133		544
Other	9		16
Total consumer	1,142		560
Total nonaccrual loans		$11,745		$15,211
Accruing loans 90 days or more past due		$—		$—

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, 2018		Dec 31, 2017		Jun 30, 2018		Dec 31, 2017		Jun 30, 2018		Dec 31, 2017
Commercial:
Mortgages		$1,041,127		$1,067,373		$1,831		$—		$—		$5,114
Construction & development	175,685		138,008		—		—		—		—
Commercial real estate	1,216,812		1,205,381		1,831		—		—		5,114
Commercial & industrial	586,941		592,749		35,612		9,804		9,476		9,781
Total commercial		$1,803,753		$1,798,130		$37,443		$9,804		$9,476		$14,895

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
	Jun 30, 2018		Dec 31, 2017		Jun 30, 2018		Dec 31, 2017
Residential Real Estate:
Self-originated mortgages		$1,194,914		$1,091,291		$10,012		$6,413
Purchased mortgages	121,261		128,102		1,231		1,442
Total residential real estate		$1,316,175		$1,219,393		$11,243		$7,855
Consumer:
Home equity		$281,159		$289,326		$2,585		$3,141
Other	28,380		31,484		16		43
Total consumer		$309,539		$320,810		$2,601		$3,184