Loans (Tables)

6 Months Ended

Jun. 30, 2019

The following is a summary of loans:



(Dollars in thousands)	June 30, 2019		December 31, 2018
Commercial:
Commercial real estate (1)		$1,482,836		$1,392,408
Commercial & industrial (2)	583,873		620,704
Total commercial	2,066,709		2,013,112
Residential Real Estate:
Residential real estate (3)	1,352,113		1,360,387
Consumer:
Home equity	288,078		280,626
Other (4)	23,439		26,235
Total consumer	311,517		306,861
Total loans (5)		$3,730,339		$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 $5.3 million and $4.7 million, respectively, at June 30, 2019 and December 31, 2018 and net unamortized premiums on purchased loans of $609 thousand and $703 thousand, respectively, at June 30, 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
June 30, 2019	30-59		60-89		Over 90		Total Past Due		Current		Total Loans
Commercial:
Commercial real estate		$2,744		$—		$926		$3,670		$1,479,166		$1,482,836
Commercial & industrial	1		—		—		1		583,872		583,873
Total commercial	2,745		—		926		3,671		2,063,038		2,066,709
Residential Real Estate:
Residential real estate	4,006		2,758		4,473		11,237		1,340,876		1,352,113
Consumer:
Home equity	1,763		351		790		2,904		285,174		288,078
Other	13		1		88		102		23,337		23,439
Total consumer	1,776		352		878		3,006		308,511		311,517
Total loans		$8,527		$3,110		$6,277		$17,914		$3,712,425		$3,730,339



(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
	Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018
No Related Allowance Recorded
Commercial:
Commercial real estate		$926		$925		$926		$926		$—		$—
Commercial & industrial	—		4,681		—		4,732		—		—
Total commercial	926		5,606		926		5,658		—		—
Residential Real Estate:
Residential real estate	9,825		9,347		10,662		9,695		—		—
Consumer:
Home equity	1,224		1,360		1,224		1,360		—		—
Other	88		—		88		—		—		—
Total consumer	1,312		1,360		1,312		1,360		—		—
Subtotal	12,063		16,313		12,900		16,713		—		—
With Related Allowance Recorded
Commercial:
Commercial real estate		$—		$—		$—		$—		$—		$—
Commercial & industrial	—		52		—		73		—		—
Total commercial	—		52		—		73		—		—
Residential Real Estate:
Residential real estate	1,145		364		1,171		390		97		100
Consumer:
Home equity	21		85		21		85		20		24
Other	19		22		19		22		2		3
Total consumer	40		107		40		107		22		27
Subtotal	1,185		523		1,211		570		119		127
Total impaired loans		$13,248		$16,836		$14,111		$17,283		$119		$127
Total:
Commercial		$926		$5,658		$926		$5,731		$—		$—
Residential real estate	10,970		9,711		11,833		10,085		97		100
Consumer	1,352		1,467		1,352		1,467		22		27
Total impaired loans		$13,248		$16,836		$14,111		$17,283		$119		$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 June 30,	2019		2018		2019		2018
Commercial:
Commercial real estate		$926		$—		$—		$—
Commercial & industrial	3,868		5,983		49		73
Total commercial	4,794		5,983		49		73
Residential Real Estate:
Residential real estate	10,728		10,017		107		85
Consumer:
Home equity	1,332		1,036		13		10
Other	35		88		—		2
Total consumer	1,367		1,124		13		12
Totals		$16,889		$17,124		$169		$170




(Dollars in thousands)	Average Recorded Investment				Interest Income Recognized
Six months ended June 30,	2019		2018		2019		2018
Commercial:
Commercial real estate		$951		$2,039		$1		$—
Commercial & industrial	4,276		5,738		103		139
Total commercial	5,227		7,777		104		139
Residential Real Estate:
Residential real estate	10,441		9,934		222		197
Consumer:
Home equity	1,406		853		27		19
Other	28		116		—		5
Total consumer	1,434		969		27		24
Totals		$17,102		$18,680		$353		$360

Nonaccrual Loans

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



(Dollars in thousands)	Jun 30, 2019		Dec 31, 2018
Commercial:
Commercial real estate		$926		$925
Commercial & industrial	—		—
Total commercial	926		925
Residential Real Estate:
Residential real estate	10,610		9,346
Consumer:
Home equity	1,243		1,436
Other	88		—
Total consumer	1,331		1,436
Total nonaccrual loans		$12,867		$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
	Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018
Commercial:
Commercial real estate		$1,460,537		$1,387,666		$17,587		$205		$4,712		$4,537
Commercial & industrial	546,188		559,019		22,234		50,426		15,451		11,259
Total commercial		$2,006,725		$1,946,685		$39,821		$50,631		$20,163		$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
	Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018
Residential Real Estate:
Self-originated mortgages		$1,239,272		$1,238,402		$10,141		$9,079
Purchased mortgages	101,604		111,465		1,096		1,441
Total residential real estate		$1,340,876		$1,349,867		$11,237		$10,520
Consumer:
Home equity		$285,174		$278,637		$2,904		$1,989
Other	23,337		26,202		102		33
Total consumer		$308,511		$304,839		$3,006		$2,022