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Loans (Tables)
 3 Months Ended
Mar. 31, 2017
Loans and Leases Receivable Disclosure [Abstract]  
Summary of Loans, Net of Unearned Fees
Loans are summarized as follows:
Dollars in thousands
 
March 31,
2017
 
December 31,
2016
 
March 31,
2016
Commercial
 
$
134,808

 
$
119,088

 
$
101,742

Commercial real estate
 
 

 
 

 
 

Owner-occupied
 
217,733

 
203,047

 
202,680

Non-owner occupied
 
401,795

 
381,921

 
353,351

Construction and development
 
 

 
 

 
 

Land and land development
 
68,079

 
72,042

 
66,483

Construction
 
16,511

 
16,584

 
7,997

Residential real estate
 
 

 
 

 
 

Non-jumbo
 
266,140

 
265,641

 
221,368

Jumbo
 
60,780

 
65,628

 
50,057

Home equity
 
75,299

 
74,596

 
74,097

Mortgage warehouse lines
 
30,217

 
85,966

 
—

Consumer
 
24,440

 
25,534

 
19,095

Other
 
8,831

 
9,489

 
11,235

Total loans, net of unearned fees
 
1,304,633

 
1,319,536

 
1,108,105

Less allowance for loan losses
 
11,718

 
11,674

 
11,315

Loans, net
 
$
1,292,915

 
$
1,307,862

 
$
1,096,790
Schedule of Acquired Loans
The outstanding balance and the recorded investment of acquired loans included in the consolidated balance sheet at March 31, 2017 are as follows:

 
 
Acquired Loans
Dollars in thousands
 
Purchased Credit Impaired
 
Purchased Performing
 
Total
Outstanding balance
 
$
2,456

 
$
49,173

 
$
51,629

 
 
 
 
 
 
 
Recorded investment
 
 
 
 
 
 
Commercial
 
$
—

 
$
3,095

 
$
3,095

Commercial real estate
 
 
 
 
 
 
Owner-occupied
 
—

 
3,054

 
3,054

Non-owner occupied
 
—

 
1,118

 
1,118

Construction and development
 
 
 
 
 
 
Land and land development
 
—

 
3,608

 
3,608

Residential real estate
 
 
 
 
 
 
Non-jumbo
 
998

 
31,037

 
32,035

Jumbo
 
1,014

 
3,247

 
4,261

Consumer
 
—

 
3,708

 
3,708

Total recorded investment
 
$
2,012

 
$
48,867

 
$
50,879
Summary of Change in Accretable Yield PCI Loans
The following table presents a summary of the change in the accretable yield of the PCI loan portfolio for the period from January 1, 2017 to March 31, 2017:
Dollars in thousands
 
 
Accretable yield, January 1, 2017
 
$
290

Accretion
 
(31
)
Reclassification of nonaccretable difference due to improvement in expected cash flows
 
—

Other changes, net
 
(14
)
Accretable yield, March 31, 2017
 
$
245
Schedule of Contractual Aging of Recorded Investment In Past Due Loans By Class
The following table presents the contractual aging of the recorded investment in past due loans by class as of March 31, 2017 and 2016 and December 31, 2016.
 
At March 31, 2017
 
Past Due
 
 
 
> 90 days and Accruing
Dollars in thousands
30-59 days
 
60-89 days
 
> 90 days
 
Total
 
Current
 
Commercial
$
5

 
$
157

 
$
55

 
$
217

 
$
134,591

 
$
—

Commercial real estate
 

 
 

 
 

 
 

 
 

 
 

Owner-occupied
162

 
2,298

 
577

 
3,037

 
214,696

 
—

Non-owner occupied
298

 
—

 
—

 
298

 
401,497

 
—

Construction and development
 

 
 

 
 

 
 

 
 

 
 

Land and land development
252

 
38

 
3,741

 
4,031

 
64,048

 
—

Construction
—

 
—

 
—

 
—

 
16,511

 
—

Residential mortgage
 

 
 

 
 

 
 

 
 

 
 

Non-jumbo
2,554

 
926

 
3,140

 
6,620

 
259,520

 
—

Jumbo
—

 
—

 
—

 
—

 
60,780

 
—

Home equity
108

 
—

 
379

 
487

 
74,812

 
—

Mortgage warehouse lines
—

 
—

 
—

 
—

 
30,217

 
—

Consumer
158

 
14

 
161

 
333

 
24,107

 
68

Other
—

 
—

 
—

 
—

 
8,831

 
—

Total
$
3,537

 
$
3,433

 
$
8,053

 
$
15,023

 
$
1,289,610

 
$
68

 
 
At December 31, 2016
 
Past Due
 
 
 
> 90 days and Accruing
Dollars in thousands
30-59 days
 
60-89 days
 
> 90 days
 
Total
 
Current
 
Commercial
$
90

 
$
86

 
$
165

 
$
341

 
$
118,747

 
$
—

Commercial real estate
 

 
 

 
 

 
 

 
 

 
 

Owner-occupied
93

 
—

 
509

 
602

 
202,445

 
—

Non-owner occupied
340

 
—

 
65

 
405

 
381,516

 
—

Construction and development
 
 
 

 
 

 
 

 
 

 
 

Land and land development
423

 
129

 
3,852

 
4,404

 
67,638

 
—

Construction
—

 
—

 
—

 
—

 
16,584

 
—

Residential mortgage
 

 
 

 
 

 
 

 
 

 
 

Non-jumbo
4,297

 
1,889

 
3,287

 
9,473

 
256,168

 
—

Jumbo
—

 
—

 
—

 
—

 
65,628

 
—

Home equity
—

 
302

 
57

 
359

 
74,237

 
—

Mortgage warehouse lines
—

 
—

 
—

 
—

 
85,966

 
—

Consumer
308

 
84

 
150

 
542

 
24,992

 
—

Other
—

 
—

 
—

 
—

 
9,489

 
—

Total
$
5,551

 
$
2,490

 
$
8,085

 
$
16,126

 
$
1,303,410

 
$
—


 
At March 31, 2016
 
Past Due
 
 
 
> 90 days and Accruing
Dollars in thousands
30-59 days
 
60-89 days
 
> 90 days
 
Total
 
Current
 
Commercial
$
39

 
$
468

 
$
179

 
$
686

 
$
101,056

 
$
—

Commercial real estate
 

 
 

 
 

 
 

 
 

 
 

Owner-occupied
272

 
497

 
822

 
1,591

 
201,089

 
—

Non-owner occupied
153

 
—

 
749

 
902

 
352,449

 
—

Construction and development
 

 
 

 
 

 
 

 
 

 
 

Land and land development
178

 
41

 
4,739

 
4,958

 
61,525

 
—

Construction
—

 
—

 
—

 
—

 
7,997

 
—

Residential mortgage
 

 
 

 
 

 
 

 
 

 
 

Non-jumbo
2,555

 
832

 
1,906

 
5,293

 
216,075

 
—

Jumbo
—

 
—

 
—

 
—

 
50,057

 
—

Home equity
—

 
453

 
71

 
524

 
73,573

 
—

Consumer
70

 
21

 
117

 
208

 
18,887

 
—

Other
—

 
—

 
—

 
—

 
11,235

 
—

Total
$
3,267

 
$
2,312

 
$
8,583

 
$
14,162

 
$
1,093,943

 
$
—
Schedule of Financing Receivables, Non Accrual Status
The following table presents the nonaccrual loans included in the net balance of loans at March 31, 2017, December 31, 2016 and March 31, 2016.
 
 
March 31,
 
December 31,
Dollars in thousands
 
2017
 
2016
 
2016
Commercial
 
$
226

 
$
430

 
$
298

Commercial real estate
 
 

 
 

 
 

Owner-occupied
 
577

 
822

 
509

Non-owner occupied
 
4,157

 
5,318

 
4,336

Construction and development
 
 

 
 

 
 

Land & land development
 
3,936

 
5,467

 
4,465

Construction
 
—

 
—

 
—

Residential mortgage
 
 

 
 

 
 

Non-jumbo
 
5,343

 
3,023

 
4,621

Jumbo
 
—

 
—

 
—

Home equity
 
542

 
225

 
194

Mortgage warehouse lines
 
—

 
—

 
—

Consumer
 
94

 
121

 
151

Total
 
$
14,875

 
$
15,406

 
$
14,574
Impaired Financing Receivables
The following tables present loans individually evaluated for impairment at March 31, 2017, December 31, 2016 and March 31, 2016.
 
March 31, 2017
Dollars in thousands
Recorded
Investment
 
Unpaid
Principal Balance
 
Related
Allowance
 
Average
Impaired
Balance
 
Interest Income
Recognized
while impaired
 
 
 
 
 
 
 
 
 
 
Without a related allowance
 
 
 
 
 
 
 
 
 
Commercial
$
275

 
$
275

 
$
—

 
$
275

 
$
9

Commercial real estate
 

 
 

 
 

 
 

 
 

Owner-occupied
806

 
806

 
—

 
806

 
44

Non-owner occupied
9,678

 
9,679

 
—

 
9,679

 
271

Construction and development
 

 
 

 
 

 
 

 
 

Land & land development
4,884

 
4,885

 
—

 
4,885

 
81

Construction
—

 
—

 
—

 
—

 
—

Residential real estate
 

 
 

 
 

 
 

 
 

Non-jumbo
4,173

 
4,183

 
—

 
4,049

 
157

Jumbo
3,626

 
3,625

 
—

 
3,625

 
172

Home equity
524

 
523

 
—

 
523

 
24

Mortgage warehouse lines
—

 
—

 
—

 
—

 
—

Consumer
39

 
39

 
—

 
39

 
4

Total without a related allowance
$
24,005

 
$
24,015

 
$
—

 
$
23,881

 
$
762

 
 
 
 
 
 
 
 
 
 
With a related allowance
 

 
 

 
 

 
 

 
 

Commercial
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Commercial real estate
 

 
 

 
 

 
 

 
 

Owner-occupied
6,847

 
6,847

 
375

 
6,847

 
268

Non-owner occupied
1,300

 
1,300

 
200

 
1,300

 
42

Construction and development
 

 
 

 
 

 
 

 
 

Land & land development
2,065

 
2,066

 
589

 
2,066

 
79

Construction
—

 
—

 
—

 
—

 
—

Residential real estate
 
 
 
 
 
 
 
 
 
Non-jumbo
2,298

 
2,300

 
337

 
2,041

 
96

Jumbo
852

 
852

 
25

 
852

 
43

Home equity
—

 
—

 
—

 
—

 
—

Mortgage warehouse lines
—

 
—

 
—

 
—

 
—

Consumer
—

 
—

 
—

 
—

 
—

Total with a related allowance
$
13,362

 
$
13,365

 
$
1,526

 
$
13,106

 
$
528

 
 
 
 
 
 
 
 
 
 
Total
 

 
 

 
 

 
 

 
 

Commercial
$
25,855

 
$
25,858

 
$
1,164

 
$
25,858

 
$
794

Residential real estate
11,473

 
11,483

 
362

 
11,090

 
492

Consumer
39

 
39

 
—

 
39

 
4

Total
$
37,367

 
$
37,380

 
$
1,526

 
$
36,987

 
$
1,290






 
December 31, 2016
Dollars in thousands
Recorded
Investment
 
Unpaid
Principal Balance
 
Related
Allowance
 
Average
Impaired
Balance
 
Interest Income
Recognized
while impaired
 
 
 
 
 
 
 
 
 
 
Without a related allowance
 
 
 
 
 
 
 
 
 
Commercial
$
285

 
$
285

 
$
—

 
$
247

 
$
10

Commercial real estate
 

 
 

 
 

 
 

 
 

Owner-occupied
520

 
520

 
—

 
534

 
31

Non-owner occupied
10,203

 
10,205

 
—

 
10,675

 
294

Construction and development
 
 
 

 
 

 
 

 
 

Land & land development
5,227

 
5,227

 
—

 
5,270

 
80

Construction
—

 
—

 
—

 
—

 
—

Residential real estate
 

 
 

 
 

 
 

 
 

Non-jumbo
4,055

 
4,065

 
—

 
3,910

 
193

Jumbo
3,640

 
3,639

 
—

 
3,693

 
175

Home equity
524

 
523

 
—

 
523

 
22

Mortgage warehouse lines
—

 
—

 
—

 
—

 
—

Consumer
44

 
44

 
—

 
50

 
5

Total without a related allowance
$
24,498

 
$
24,508

 
$
—

 
$
24,902

 
$
810

 
 
 
 
 
 
 
 
 
 
With a related allowance
 

 
 

 
 

 
 

 
 

Commercial
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Commercial real estate
 

 
 

 
 

 
 

 
 

Owner-occupied
6,864

 
6,864

 
347

 
6,879

 
269

Non-owner occupied
1,311

 
1,311

 
197

 
1,327

 
43

Construction and development
 
 
 

 
 

 
 

 
 

Land & land development
2,066

 
2,066

 
585

 
2,074

 
80

Construction
—

 
—

 
—

 
—

 
—

Residential real estate
 

 
 

 
 

 
 

 
 

Non-jumbo
2,055

 
2,057

 
251

 
1,851

 
78

Jumbo
853

 
853

 
24

 
862

 
44

Home equity
—

 
—

 
—

 
—

 
—

Mortgage warehouse lines
—

 
—

 
—

 
—

 
—

Consumer
—

 
—

 
—

 
—

 
—

Total with a related allowance
$
13,149

 
$
13,151

 
$
1,404

 
$
12,993

 
$
514

 
 
 
 
 
 
 
 
 
 
Total
 

 
 

 
 

 
 

 
 

Commercial
$
26,476

 
$
26,478

 
$
1,129

 
$
27,006

 
$
807

Residential real estate
11,127

 
11,137

 
275

 
10,839

 
512

Consumer
44

 
44

 
—

 
50

 
5

Total
$
37,647

 
$
37,659

 
$
1,404

 
$
37,895

 
$
1,324





 
 
March 31, 2016
Dollars in thousands
Recorded
Investment
 
Unpaid
Principal Balance
 
Related
Allowance
 
Average
Impaired
Balance
 
Interest Income
Recognized
while impaired
 
 
 
 
 
 
 
 
 
 
Without a related allowance
 
 
 
 
 
 
 
 
 
Commercial
$
200

 
$
200

 
$
—

 
$
200

 
$
9

Commercial real estate
 

 
 

 
 

 
 

 
 

Owner-occupied
5,446

 
5,446

 
—

 
5,446

 
211

Non-owner occupied
11,352

 
11,353

 
—

 
11,353

 
299

Construction and development
 
 
 

 
 

 
 

 
 

Land & land development
7,451

 
7,452

 
—

 
7,452

 
163

Construction
—

 
—

 
—

 
—

 
—

Residential real estate
 

 
 

 
 

 
 

 
 

Non-jumbo
4,060

 
4,071

 
—

 
3,824

 
169

Jumbo
3,740

 
3,739

 
—

 
3,739

 
178

Home equity
710

 
709

 
—

 
709

 
32

Consumer
62

 
62

 
—

 
62

 
5

Total without a related allowance
$
33,021

 
$
33,032

 
$
—

 
$
32,785

 
$
1,066

 
 
 
 
 
 
 
 
 
 
With a related allowance
 

 
 

 
 

 
 

 
 

Commercial
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Commercial real estate
 

 
 

 
 

 
 

 
 

Owner-occupied
2,929

 
2,929

 
89

 
2,929

 
112

Non-owner occupied
1,841

 
1,841

 
151

 
1,841

 
71

Construction and development
 
 
 

 
 

 
 

 
 

Land & land development
1,152

 
1,152

 
139

 
1,152

 
—

Construction
—

 
—

 
—

 
—

 
—

Residential real estate
 

 
 

 
 

 
 

 
 

Non-jumbo
2,337

 
2,337

 
187

 
2,337

 
112

Jumbo
867

 
868

 
31

 
868

 
43

Home equity
—

 
—

 
—

 
—

 
—

Consumer
—

 
—

 
—

 
—

 
—

Total with a related allowance
$
9,126

 
$
9,127

 
$
597

 
$
9,127

 
$
338

 
 
 
 
 
 
 
 
 
 
Total
 

 
 

 
 

 
 

 
 

Commercial
$
30,371

 
$
30,373

 
$
379

 
$
30,373

 
$
865

Residential real estate
11,714

 
11,724

 
218

 
11,477

 
534

Consumer
62

 
62

 
—

 
62

 
5

Total
$
42,147

 
$
42,159

 
$
597

 
$
41,912

 
$
1,404
Troubled Debt Restructurings on Financing Receivables [Table Text Block]
The following table presents by class the TDRs that were restructured during the three months ended March 31, 2017 and March 31, 2016 . Generally, the modifications were extensions of term, modifying the payment terms from principal and interest to interest only for an extended period, or reduction in interest rate.  All TDRs are evaluated individually for allowance for loan loss purposes.

 
For the Three Months Ended 
 March 31, 2017
 
For the Three Months Ended 
 March 31, 2016
Dollars in thousands
Number of
Modifications
 
Pre-modification
Recorded
Investment
 
Post-modification
Recorded
Investment
 
Number of
Modifications
 
Pre-modification
Recorded
Investment
 
Post-modification
Recorded
Investment
Commercial
—

 
$
—

 
$
—

 
—

 
$
—

 
$
—

Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied
—

 
—

 
—

 
—

 
—

 
—

Non-owner occupied
—

 
—

 
—

 
—

 
—

 
—

Construction and development
 
 
 
 
 
 
 
 
 
 
 
Land & land development
—

 
—

 
—

 
—

 
—

 
—

Construction
—

 
—

 
—

 
—

 
—

 
—

Residential real estate
 
 
 
 
 
 
 
 
 
 
 
Non-jumbo
4

 
880

 
880

 
1

 
250

 
250

Jumbo
—

 
—

 
—

 
—

 
—

 
—

Home equity
—

 
—

 
—

 
—

 
—

 
—

Mortgage warehouse lines
—

 
—

 
—

 
—

 
—

 
—

Consumer
—

 
—

 
—

 
—

 
—

 
—

Total
4

 
$
880

 
$
880

 
1

 
$
250

 
$
250
Schedule of Defaults During Stated Period of Trouble Debt Restructurings
For purposes of these tables, a default is considered as either the loan was past due 30 days or more at any time during the period, or the loan was fully or partially charged off during the period. 
 
For the Three Months Ended 
 March 31, 2017
Dollars in thousands
Number
of
Defaults
 
Recorded
Investment
at Default Date
Commercial
—

 
$
—

Commercial real estate


 


Owner-occupied
—

 
—

Non-owner occupied
—

 
—

Construction and development

 


Land & land development
—

 
—

Construction
—

 
—

Residential real estate


 


Non-jumbo
1

 
319

Jumbo
—

 
—

Home equity
—

 
—

Mortgage warehouse lines
—

 
—

Consumer
—

 
—

Total
1

 
$
319
Schedule of the Activity Regarding TDRs by Loan Type
The following table details the activity regarding TDRs by loan type for the three months and three months ended March 31, 2017, and the related allowance on TDRs.
For the Three Months Ended March 31, 2017
 
Construction & Land Development
 
 
 
Commercial Real Estate
 
Residential Real Estate
 
 
 
 
 
 
 
 
Dollars in thousands
Land &
Land
Develop-
ment
 
Construc-
tion
 
Commer-
cial
 
Owner
Occupied
 
Non-
Owner
Occupied
 
Non-
jumbo
 
Jumbo
 
Home
Equity
 
Mortgage Warehouse Lines
 
Con-
sumer
 
Other
 
Total
Troubled debt restructurings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance January 1, 2017
$
3,866

 
$
—

 
$
183

 
$
7,383

 
$
6,714

 
$
5,417

 
$
4,493

 
$
523

 
$
—

 
$
44

 
$
—

 
$
28,623

Additions
—

 
—

 
—

 
—

 
—

 
880

 
—

 
—

 
—

 
—

 
—

 
880

Charge-offs
—

 
—

 
—

 
—

 
(65
)
 
—

 
—

 
—

 
—

 
—

 
—

 
(65
)
Net (paydowns) advances
(352
)
 
—

 
(5
)
 
(28
)
 
(58
)
 
(83
)
 
(15
)
 
—

 
—

 
(4
)
 
—

 
(545
)
Transfer into foreclosed properties
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Refinance out of TDR status
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Balance, March 31, 2017
$
3,514

 
$
—

 
$
178

 
$
7,355

 
$
6,591

 
$
6,214

 
$
4,478

 
$
523

 
$
—

 
$
40

 
$
—

 
$
28,893

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance related to troubled debt restructurings
$
526

 
$
—

 
$
—

 
$
375

 
$
200

 
$
337

 
$
25

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,463
Financing Receivable Credit Quality Indicators
The following table presents the recorded investment in construction and development, commercial, and commercial real estate loans which are generally evaluated based upon our internal risk ratings.
Loan Risk Profile by Internal Risk Rating
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and Development
 
 
 
 
 
Commercial Real Estate
 
 
 
 
Land and Land Development
 
Construction
 
Commercial
 
Owner Occupied
 
Non-Owner Occupied
 
Mortgage Warehouse Lines
Dollars in thousands
3/31/2017
 
12/31/2016
 
3/31/2017
 
12/31/2016
 
3/31/2017
 
12/31/2016
 
3/31/2017
 
12/31/2016
 
3/31/2017
 
12/31/2016
 
3/31/2017
12/31/2016
Pass
$
60,870

 
$
64,144

 
$
16,511

 
$
16,584

 
$
133,106

 
$
117,214

 
$
212,724

 
$
201,113

 
$
396,073

 
$
375,181

 
$
30,217

$
85,966

OLEM (Special Mention)
2,002

 
2,097

 
—

 
—

 
1,341

 
1,471

 
3,152

 
567

 
1,199

 
1,381

 
—

—

Substandard
5,207

 
5,801

 
—

 
—

 
361

 
403

 
1,857

 
1,367

 
4,523

 
5,359

 
—

—

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

—

Loss
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

—

Total
$
68,079

 
$
72,042

 
$
16,511

 
$
16,584

 
$
134,808

 
$
119,088

 
$
217,733

 
$
203,047

 
$
401,795

 
$
381,921

 
$
30,217

$
85,966
Schedule of Recorded Investment Evaluated Based on Aging Status of Loans and Payment Activity
The following table presents the recorded investment in consumer, residential real estate, and home equity loans, which are generally evaluated based on the aging status of the loans, which was previously presented, and payment activity.
 
Performing
 
Nonperforming
Dollars in thousands
3/31/2017
 
12/31/2016
 
3/31/2016
 
3/31/2017
 
12/31/2016
 
3/31/2016
Residential real estate
 
 
 
 
 
 
 
 
 
 
 
Non-jumbo
$
260,690

 
$
261,020

 
$
218,345

 
$
5,450

 
$
4,621

 
$
3,023

Jumbo
60,780

 
65,628

 
50,057

 
—

 
—

 
—

Home Equity
74,757

 
74,402

 
73,872

 
542

 
194

 
225

Consumer
24,262

 
25,368

 
18,960

 
178

 
166

 
135

Other
8,831

 
9,489

 
11,235

 
—

 
—

 
—

Total
$
429,320

 
$
435,907

 
$
372,469

 
$
6,170

 
$
4,981

 
$
3,383