Loans (Tables)

9 Months Ended

Sep. 30, 2019

The following is a summary of loans:



(Dollars in thousands)	September 30, 2019		December 31, 2018
Commercial:
Commercial real estate (1)		$1,517,320		$1,392,408
Commercial & industrial (2)	566,426		620,704
Total commercial	2,083,746		2,013,112
Residential Real Estate:
Residential real estate (3)	1,378,518		1,360,387
Consumer:
Home equity	294,250		280,626
Other (4)	21,592		26,235
Total consumer	315,842		306,861
Total loans (5)		$3,778,106		$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 $5.7 million and $4.7 million, respectively, at September 30, 2019 and December 31, 2018 and net unamortized premiums on purchased loans of $575 thousand and $703 thousand, respectively, at September 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
September 30, 2019	30-59		60-89		Over 90		Total Past Due		Current		Total Loans
Commercial:
Commercial real estate		$—		$—		$684		$684		$1,516,636		$1,517,320
Commercial & industrial	1		—		—		1		566,425		566,426
Total commercial	1		—		684		685		2,083,061		2,083,746
Residential Real Estate:
Residential real estate	4,333		2,506		4,760		11,599		1,366,919		1,378,518
Consumer:
Home equity	744		417		812		1,973		292,277		294,250
Other	11		—		88		99		21,493		21,592
Total consumer	755		417		900		2,072		313,770		315,842
Total loans		$5,089		$2,923		$6,344		$14,356		$3,763,750		$3,778,106



(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
	Sep 30, 2019		Dec 31, 2018		Sep 30, 2019		Dec 31, 2018		Sep 30, 2019		Dec 31, 2018
No Related Allowance Recorded
Commercial:
Commercial real estate		$684		$925		$926		$926		$—		$—
Commercial & industrial	—		4,681		—		4,732		—		—
Total commercial	684		5,606		926		5,658		—		—
Residential Real Estate:
Residential real estate	12,531		9,347		13,368		9,695		—		—
Consumer:
Home equity	1,379		1,360		1,379		1,360		—		—
Other	88		—		88		—		—		—
Total consumer	1,467		1,360		1,467		1,360		—		—
Subtotal	14,682		16,313		15,761		16,713		—		—
With Related Allowance Recorded
Commercial:
Commercial real estate		$—		$—		$—		$—		$—		$—
Commercial & industrial	—		52		—		73		—		—
Total commercial	—		52		—		73		—		—
Residential Real Estate:
Residential real estate	360		364		386		390		96		100
Consumer:
Home equity	220		85		220		85		220		24
Other	19		22		19		22		5		3
Total consumer	239		107		239		107		225		27
Subtotal	599		523		625		570		321		127
Total impaired loans		$15,281		$16,836		$16,386		$17,283		$321		$127
Total:
Commercial		$684		$5,658		$926		$5,731		$—		$—
Residential real estate	12,891		9,711		13,754		10,085		96		100
Consumer	1,706		1,467		1,706		1,467		225		27
Total impaired loans		$15,281		$16,836		$16,386		$17,283		$321		$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 September 30,	2019		2018		2019		2018
Commercial:
Commercial real estate		$886		$—		$—		$—
Commercial & industrial	—		5,324		—		62
Total commercial	886		5,324		—		62
Residential Real Estate:
Residential real estate	12,017		9,265		109		96
Consumer:
Home equity	1,414		1,424		16		22
Other	108		25		3		—
Total consumer	1,522		1,449		19		22
Totals		$14,425		$16,038		$128		$180




(Dollars in thousands)	Average Recorded Investment				Interest Income Recognized
Nine months ended September 30,	2019		2018		2019		2018
Commercial:
Commercial real estate		$929		$1,352		$1		$—
Commercial & industrial	2,835		5,599		103		201
Total commercial	3,764		6,951		104		201
Residential Real Estate:
Residential real estate	10,972		9,709		331		293
Consumer:
Home equity	1,409		1,045		43		41
Other	55		85		2		5
Total consumer	1,464		1,130		45		46
Totals		$16,200		$17,790		$480		$540

Nonaccrual Loans

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



(Dollars in thousands)	Sep 30, 2019		Dec 31, 2018
Commercial:
Commercial real estate		$684		$925
Commercial & industrial	—		—
Total commercial	684		925
Residential Real Estate:
Residential real estate	12,531		9,346
Consumer:
Home equity	1,599		1,436
Other	88		—
Total consumer	1,687		1,436
Total nonaccrual loans		$14,902		$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
	Sep 30, 2019		Dec 31, 2018		Sep 30, 2019		Dec 31, 2018		Sep 30, 2019		Dec 31, 2018
Commercial:
Commercial real estate		$1,498,212		$1,387,666		$18,224		$205		$884		$4,537
Commercial & industrial	529,219		559,019		25,679		50,426		11,528		11,259
Total commercial		$2,027,431		$1,946,685		$43,903		$50,631		$12,412		$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
	Sep 30, 2019		Dec 31, 2018		Sep 30, 2019		Dec 31, 2018
Residential Real Estate:
Self-originated mortgages		$1,261,364		$1,238,402		$10,503		$9,079
Purchased mortgages	105,555		111,465		1,096		1,441
Total residential real estate		$1,366,919		$1,349,867		$11,599		$10,520
Consumer:
Home equity		$292,277		$278,637		$1,973		$1,989
Other	21,493		26,202		99		33
Total consumer		$313,770		$304,839		$2,072		$2,022