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Loans (Tables)
 9 Months Ended
Sep. 30, 2014
Loans [Abstract]  
Schedule of loans, excluding loans held for sale
Loans, excluding loans held for sale, were comprised of the following:

(in thousands)
 
September 30, 2014
  
December 31, 2013
 
 
 
  
 
Commercial
 
$
126,437
  
$
122,553
 
Commercial real estate:
        
Construction and land development
  
47,060
   
41,822
 
Commercial real estate
  
371,743
   
364,616
 
Residential real estate:
        
Residential
  
175,091
   
171,917
 
Home equity
  
90,952
   
87,797
 
Consumer
  
5,305
   
5,966
 
Total loans
 
$
816,588
  
$
794,671
 
Schedule stating outstanding principal balance and the carrying amount of loan acquired
Interest income, including accretion, on loans acquired from MidCarolina Financial Corporation ("MidCarolina") in connection with the Company's acquisition of MidCarolina for the nine months ended September 30, 2014 was approximately $8.5 million. This included $2.2 million in accretion income of which $88,000 was related to loan payoffs and renewals and $290,000 related to recoveries of loans charged off prior to the merger. The outstanding principal balance and the carrying amount of these loans included in the consolidated balance sheets at September 30, 2014 and December 31, 2013 are as follows:

(in thousands)
 
September 30, 2014
  
December 31, 2013
 
Outstanding principal balance
 
$
92,092
  
$
134,099
 
Carrying amount
  
84,711
   
124,828
 

The outstanding principal balance and related carrying amount of acquired impaired loans, for which the Company applies Accounting Standards Codification ("ASC") 310-30, to account for interest earned, at September 30, 2014 and December 31, 2013 are as follows:

(in thousands)
 
September 30, 2014
  
December 31, 2013
 
Outstanding principal balance
 
$
18,780
  
$
21,014
 
Carrying amount
  
14,847
   
16,644
 
Schedule of changes in the accretable discount on acquired loans
The following table presents changes in the accretable discount on acquired impaired loans, for which the Company applies ASC 310-30, for the nine months ended September 30, 2014. The accretion reflected below includes $88,000 related to loan payoffs.

(in thousands)
 
Accretable Discount
 
Balance at December 31, 2013
 
$
2,046
 
Accretion
  
(862
)
Reclassification from nonaccretable difference
  
443
 
Balance at September 30, 2014
 
$
1,627
 
Schedule of analysis by portfolio segment of the entity's past due loans
The following table shows an analysis by portfolio segment of the Company's past due loans at September 30, 2014.

 
 
  
  
  
  
  
  
 
(in thousands)
 
30- 59 Days
Past Due
  
60-89 Days
Past Due
  
90 Days +
Past Due
and Still
Accruing
  
Non-
Accrual
Loans
  
Total
Past
Due
  
Current
  
Total
Loans
 
 
 
  
  
  
  
  
  
 
Commercial
 
$
-
  
$
-
  
$
-
  
$
2
  
$
2
  
$
126,435
  
$
126,437
 
Commercial real estate:
                            
Construction and land development
  
-
   
-
   
-
   
290
   
290
   
46,770
   
47,060
 
Commercial real estate
  
-
   
-
   
-
   
3,399
   
3,399
   
368,344
   
371,743
 
Residential:
                            
Residential
  
389
   
6
   
-
   
590
   
985
   
174,106
   
175,091
 
Home equity
  
205
   
-
   
-
   
211
   
416
   
90,536
   
90,952
 
Consumer
  
2
   
-
   
-
   
2
   
4
   
5,301
   
5,305
 
Total
 
$
596
  
$
6
  
$
-
  
$
4,494
  
$
5,096
  
$
811,492
  
$
816,588
 

The following table shows an analysis by portfolio segment of the Company's past due loans at December 31, 2013.

(in thousands)
 
30- 59 Days
Past Due
  
60-89 Days
Past Due
  
90 Days +
Past Due
and Still
Accruing
  
Non-
Accrual
Loans
  
Total
Past
Due
  
Current
  
Total
Loans
 
 
 
  
  
  
  
  
  
 
Commercial
 
$
27
  
$
-
  
$
-
  
$
11
  
$
38
  
$
122,515
  
$
122,553
 
Commercial real estate:
                            
Construction and land development
  
-
   
51
   
-
   
877
   
928
   
40,894
   
41,822
 
Commercial real estate
  
667
   
-
   
-
   
2,879
   
3,546
   
361,070
   
364,616
 
Residential:
                            
Residential
  
642
   
202
   
-
   
880
   
1,724
   
170,193
   
171,917
 
Home equity
  
109
   
18
   
-
   
424
   
551
   
87,246
   
87,797
 
Consumer
  
21
   
1
   
-
   
-
   
22
   
5,944
   
5,966
 
Total
 
$
1,466
  
$
272
  
$
-
  
$
5,071
  
$
6,809
  
$
787,862
  
$
794,671
 
Schedule of impaired loan balances by portfolio segment
The following table presents the Company's impaired loan balances by portfolio segment, excluding loans acquired with deteriorated credit quality, at September 30, 2014.

(in thousands)
 
Recorded
Investment
  
Unpaid
Principal
Balance
  
Related
Allowance
  
Average
Recorded
Investment
  
Interest
Income
Recognized
 
With no related allowance recorded:
 
  
  
  
  
 
Commercial
 
$
9
  
$
9
  
$
-
  
$
14
  
$
1
 
Commercial real estate:
                    
Construction and land development
  
291
   
333
   
-
   
504
   
-
 
Commercial real estate
  
984
   
990
   
-
   
919
   
-
 
Residential:
                    
Residential
  
511
   
523
   
-
   
768
   
-
 
Home equity
  
205
   
205
   
-
   
350
   
-
 
Consumer
  
2
   
2
   
-
   
3
   
-
 
 
 
$
2,002
  
$
2,062
  
$
-
  
$
2,558
  
$
1
 
With a related allowance recorded:
                    
Commercial
  
-
   
-
   
-
   
-
   
-
 
Commercial real estate:
                    
Construction and land development
  
582
   
582
   
11
   
597
   
25
 
Commercial real estate
  
2,202
   
2,229
   
631
   
2,219
   
13
 
Residential
                    
Residential
  
4
   
4
   
1
   
4
   
-
 
Home equity
  
-
   
-
   
-
   
-
   
-
 
Consumer
  
16
   
16
   
3
   
17
   
1
 
 
 
$
2,804
  
$
2,831
  
$
646
  
$
2,837
  
$
39
 
Total:
                    
Commercial
 
$
9
  
$
9
  
$
-
  
$
14
  
$
1
 
Commercial real estate:
                    
Construction and land development
  
873
   
915
   
11
   
1,101
   
25
 
Commercial real estate
  
3,186
   
3,219
   
631
   
3,138
   
13
 
Residential:
                    
Residential
  
515
   
527
   
1
   
772
   
-
 
Home equity
  
205
   
205
   
-
   
350
   
-
 
Consumer
  
18
   
18
   
3
   
20
   
1
 
 
 
$
4,806
  
$
4,893
  
$
646
  
$
5,395
  
$
40
 

The following table presents the Company's impaired loan balances by portfolio segment, excluding loans acquired with deteriorated credit quality, at December 31, 2013.

(in thousands)
 
Recorded
Investment
  
Unpaid
Principal
Balance
  
Related
Allowance
  
Average
Recorded
Investment
  
Interest
Income
Recognized
 
With no related allowance recorded:
 
  
  
  
  
 
Commercial
 
$
19
  
$
19
  
$
-
  
$
20
  
$
1
 
Commercial real estate:
                    
Construction and land development
  
18
   
18
   
-
   
261
   
4
 
Commercial real estate
  
936
   
936
   
-
   
950
   
13
 
Residential:
                    
Residential
  
880
   
888
   
-
   
1,200
   
11
 
Home equity
  
424
   
424
   
-
   
433
   
-
 
   Consumer
  
-
   
-
   
-
   
-
   
-
 
 
 
$
2,277
  
$
2,285
  
$
-
  
$
2,864
  
$
29
 
With a related allowance recorded:
                    
Commercial
 
$
-
  
$
-
  
$
-
  
$
-
  
$
-
 
Commercial real estate:
                    
Construction and land development
  
1,468
   
1,507
   
68
   
1,551
   
33
 
Commercial real estate
  
2,266
   
2,264
   
488
   
1,198
   
7
 
Residential:
                    
Residential
  
1,198
   
-
   
-
   
-
   
-
 
Home equity
  
-
   
-
   
-
   
-
   
-
 
   Consumer
  
18
   
18
   
3
   
19
   
1
 
 
 
$
3,752
  
$
3,789
  
$
559
  
$
2,768
  
$
41
 
Total:
                    
Commercial
 
$
19
  
$
19
  
$
-
  
$
20
  
$
1
 
Commercial real estate:
                    
Construction and land development
  
1,486
   
1,525
   
68
   
1,812
   
37
 
Commercial real estate
  
3,202
   
3,200
   
488
   
2,148
   
20
 
Residential:
                    
Residential
  
880
   
888
   
-
   
1,200
   
11
 
Home equity
  
424
   
424
   
-
   
433
   
-
 
   Consumer
  
18
   
18
   
3
   
19
   
1
 
 
 
$
6,029
  
$
6,074
  
$
559
  
$
5,632
  
$
70
 


The following table shows the detail of loans modified as troubled debt restructurings ("TDRs")  during the nine months ended September 30, 2014 included in the impaired loan balances. There were no loans modified as TDRs for the three months ended September 30, 2014 and 2013 or the nine months ended September 30, 2013.


 
 
Loans Modified as a TDR for the
Nine Months Ended September 30, 2014
 
(dollars in thousands)
 
Number of
Contracts
  
Pre-Modification
Outstanding Recorded
Investment
  
Post-Modification
Outstanding Recorded
Investment
 
Commercial
  
-
  
$
-
  
$
-
 
Commercial real estate
  
1
   
182
   
179
 
   Construction and land development
  
-
   
-
   
-
 
   Home Equity
  
1
   
8
   
8
 
   Residential real estate
  
2
   
121
   
115
 
Consumer
  
-
   
-
   
-
 
Total
  
4
  
$
311
  
$
302
 

          During the three and nine months ended September 30, 2014 and 2013, the Company had no loans that subsequently defaulted within twelve months of modification.
Schedule of detail of loans modified as troubled debt restructurings

The following table shows the detail of loans modified as troubled debt restructurings ("TDRs")  during the nine months ended September 30, 2014 included in the impaired loan balances. There were no loans modified as TDRs for the three months ended September 30, 2014 and 2013 or the nine months ended September 30, 2013.


 
 
Loans Modified as a TDR for the
Nine Months Ended September 30, 2014
 
(dollars in thousands)
 
Number of
Contracts
  
Pre-Modification
Outstanding Recorded
Investment
  
Post-Modification
Outstanding Recorded
Investment
 
Commercial
  
-
  
$
-
  
$
-
 
Commercial real estate
  
1
   
182
   
179
 
   Construction and land development
  
-
   
-
   
-
 
   Home Equity
  
1
   
8
   
8
 
   Residential real estate
  
2
   
121
   
115
 
Consumer
  
-
   
-
   
-
 
Total
  
4
  
$
311
  
$
302
 

          During the three and nine months ended September 30, 2014 and 2013, the Company had no loans that subsequently defaulted within twelve months of modification.
Schedule of commercial loan portfolio broken down by internal risk grading
The following table shows the Company's loan portfolio broken down by internal risk grading as of September 30, 2014.

(in thousands)
Commercial and Consumer Credit Exposure
Credit Risk Profile by Internally Assigned Grade

 
 
Commercial
  
Commercial
Real Estate
Construction
  
Commercial
Real Estate
Other
  
Residential
  
Home
Equity
 
 
 
  
  
  
  
 
Pass
 
$
124,768
  
$
41,573
  
$
361,955
  
$
164,460
  
$
88,773
 
Special Mention
  
1,659
   
624
   
5,400
   
7,484
   
1,624
 
Substandard
  
10
   
4,863
   
4,388
   
3,147
   
555
 
Doubtful
  
-
   
-
   
-
   
-
   
-
 
Total
 
$
126,437
  
$
47,060
  
$
371,743
  
$
175,091
  
$
90,952
 

Consumer Credit Exposure
Credit Risk Profile Based on Payment Activity

 
Consumer
 
 
 
Performing
 
$
5,303
 
Nonperforming
  
2
 
Total
 
$
5,305
 

The following table shows the Company's loan portfolio broken down by internal risk grading as of December 31, 2013.

(in thousands)
Commercial and Consumer Credit Exposure
Credit Risk Profile by Internally Assigned Grade

 
 
Commercial
  
Commercial
Real Estate
Construction
  
Commercial
Real Estate
Other
  
Residential
  
Home
Equity
 
 
 
  
  
  
  
 
Pass
 
$
121,033
  
$
35,563
  
$
351,801
  
$
158,478
  
$
85,163
 
Special Mention
  
1,500
   
1,005
   
6,795
   
8,242
   
1,650
 
Substandard
  
20
   
5,254
   
6,020
   
5,197
   
984
 
Doubtful
  
-
   
-
   
-
   
-
   
-
 
Total
 
$
122,553
  
$
41,822
  
$
364,616
  
$
171,917
  
$
87,797
 

Consumer Credit Exposure
Credit Risk Profile Based on Payment Activity

 
 
Consumer
 
 
 
 
Performing
 
$
5,966
 
Nonperforming
  
-
 
Total
 
$
5,966