Loans (Tables)

3 Months Ended

Mar. 31, 2019

The following is a summary of loans:



(Dollars in thousands)	March 31, 2019		December 31, 2018
Commercial:
Commercial real estate (1)		$1,463,682		$1,392,408
Commercial & industrial (2)	610,608		620,704
Total commercial	2,074,290		2,013,112
Residential Real Estate:
Residential real estate (3)	1,359,072		1,360,387
Consumer:
Home equity	279,938		280,626
Other (4)	25,169		26,235
Total consumer	305,107		306,861
Total loans (5)		$3,738,469		$3,680,360


(1)	Consists 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)	Consists of loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate.


(3)	Consists of mortgage and homeowner construction loans secured by one- to four-family residential properties.


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


(5)	Includes net unamortized loan origination costs of $4.9 million and $4.7 million, respectively, at March 31, 2019 and December 31, 2018 and net unamortized premiums on purchased loans of $668 thousand and $703 thousand, respectively, at March 31, 2019 and December 31, 2018.

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
March 31, 2019	30-59		60-89		Over 90		Total Past Due		Current		Total Loans
Commercial:
Commercial real estate		$—		$—		$926		$926		$1,462,756		$1,463,682
Commercial & industrial	1		—		—		1		610,607		610,608
Total commercial	1		—		926		927		2,073,363		2,074,290
Residential Real Estate:
Residential real estate	5,868		2,749		2,232		10,849		1,348,223		1,359,072
Consumer:
Home equity	1,851		433		627		2,911		277,027		279,938
Other	13		—		—		13		25,156		25,169
Total consumer	1,864		433		627		2,924		302,183		305,107
Total loans		$7,733		$3,182		$3,785		$14,700		$3,723,769		$3,738,469



(Dollars in thousands)	Days Past Due
December 31, 2018	30-59		60-89		Over 90		Total Past Due		Current		Total Loans
Commercial:
Commercial real estate		$155		$925		$—		$1,080		$1,391,328		$1,392,408
Commercial & industrial	—		—		—		—		620,704		620,704
Total commercial	155		925		—		1,080		2,012,032		2,013,112
Residential Real Estate:
Residential real estate	6,318		2,693		1,509		10,520		1,349,867		1,360,387
Consumer:
Home equity	1,281		156		552		1,989		278,637		280,626
Other	33		—		—		33		26,202		26,235
Total consumer	1,314		156		552		2,022		304,839		306,861
Total loans		$7,787		$3,774		$2,061		$13,622		$3,666,738		$3,680,360

Impaired Loans

The following is a summary of impaired loans:



(Dollars in thousands)	Recorded Investment (1)				Unpaid Principal				Related Allowance
	Mar 31, 2019		Dec 31, 2018		Mar 31, 2019		Dec 31, 2018		Mar 31, 2019		Dec 31, 2018
No Related Allowance Recorded
Commercial:
Commercial real estate		$926		$925		$926		$926		$—		$—
Commercial & industrial	4,645		4,681		4,633		4,732		—		—
Total commercial	5,571		5,606		5,559		5,658		—		—
Residential Real Estate:
Residential real estate	9,659		9,347		10,010		9,695		—		—
Consumer:
Home equity	1,297		1,360		1,297		1,360		—		—
Other	—		—		—		—		—		—
Total consumer	1,297		1,360		1,297		1,360		—		—
Subtotal	16,527		16,313		16,866		16,713		—		—
With Related Allowance Recorded
Commercial:
Commercial real estate		$—		$—		$—		$—		$—		$—
Commercial & industrial	—		52		—		73		—		—
Total commercial	—		52		—		73		—		—
Residential Real Estate:
Residential real estate	736		364		762		390		98		100
Consumer:
Home equity	111		85		111		85		111		24
Other	21		22		20		22		1		3
Total consumer	132		107		131		107		112		27
Subtotal	868		523		893		570		210		127
Total impaired loans		$17,395		$16,836		$17,759		$17,283		$210		$127
Total:
Commercial		$5,571		$5,658		$5,559		$5,731		$—		$—
Residential real estate	10,395		9,711		10,772		10,085		98		100
Consumer	1,429		1,467		1,428		1,467		112		27
Total impaired loans		$17,395		$16,836		$17,759		$17,283		$210		$127

(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 March 31,	2019		2018		2019		2018
Commercial:
Commercial real estate		$976		$4,100		$1		$—
Commercial & industrial	4,689		5,492		54		66
Total commercial	5,665		9,592		55		66
Residential Real Estate:
Residential real estate	10,151		9,850		115		112
Consumer:
Home equity	1,480		667		14		9
Other	21		144		—		3
Total consumer	1,501		811		14		12
Totals		$17,317		$20,253		$184		$190

Nonaccrual Loans

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



(Dollars in thousands)	Mar 31, 2019		Dec 31, 2018
Commercial:
Commercial real estate		$926		$925
Commercial & industrial	—		—
Total commercial	926		925
Residential Real Estate:
Residential real estate	10,032		9,346
Consumer:
Home equity	1,407		1,436
Other	—		—
Total consumer	1,407		1,436
Total nonaccrual loans		$12,365		$11,707
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
	Mar 31, 2019		Dec 31, 2018		Mar 31, 2019		Dec 31, 2018		Mar 31, 2019		Dec 31, 2018
Commercial:
Commercial real estate		$1,441,182		$1,387,666		$17,778		$205		$4,722		$4,537
Commercial & industrial	571,489		559,019		27,073		50,426		12,046		11,259
Total commercial		$2,012,671		$1,946,685		$44,851		$50,631		$16,768		$15,796

Credit Quality Indicators Residential & Consumer

The following table presents the residential and consumer loan portfolios, segregated by loan type and credit quality indicator:



(Dollars in thousands)	Current				Past Due
	Mar 31, 2019		Dec 31, 2018		Mar 31, 2019		Dec 31, 2018
Residential Real Estate:
Self-originated mortgages		$1,240,306		$1,238,402		$9,751		$9,079
Purchased mortgages	107,917		111,465		1,098		1,441
Total residential real estate		$1,348,223		$1,349,867		$10,849		$10,520
Consumer:
Home equity		$277,027		$278,637		$2,911		$1,989
Other	25,156		26,202		13		33
Total consumer		$302,183		$304,839		$2,924		$2,022