Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

Summary of Changes in Allowance for Loan Losses

An analysis of the allowance for loan losses for each of the three years ending December 31, 2014, 2013 and 2012 is as follows:

	2014			2013			2012
(dollars in thousands)
Allowance for loan losses, beginning of year	$	20,941		$	19,197		$	16,574
Loans charged-off		(1,382	)		(1,813	)		(2,301	)
Recoveries on loans previously charged-off		709			847			774
Net charge-offs		(673	)		(966	)		(1,527	)
Provision charged to expense		2,050			2,710			4,150
Allowance for loan losses, end of year	$	22,318		$	20,941		$	19,197

Summary of Allowance for Loan Losses

Further information pertaining to the allowance for loan losses at December 31, 2014 follows:

	Construction and Land Development			Commercial and Industrial			Municipal		Commercial Real Estate		Residential Real Estate			Consumer			Home Equity			Unallocated			Total
(dollars in thousands)
Allowance for Loan Losses:
Balance at December 31, 2013	$	2,174		$	2,617		$	655	$	10,935	$	2,006		$	432		$	959		$	1,163		$	20,941
Charge-offs		(500	)		(333	)		—		—		(24	)		(525	)		—			—			(1,382	)
Recoveries		—			201			—		7		27			391			83			—			709
Provision		(82	)		2,272			833		257		(1,233	)		512			(443	)		(66	)		2,050
Ending balance at December 31, 2014	$	1,592		$	4,757		$	1,488	$	11,199	$	776		$	810		$	599		$	1,097		$	22,318
Amount of allowance for loan losses for loans deemed to be impaired	$	21		$	57		$	—	$	639	$	95		$	—		$	92		$	—		$	904
Amount of allowance for loan losses for loans not deemed to be impaired	$	1,571		$	4,700		$	1,488	$	10,560	$	681		$	810		$	507		$	1,097		$	21,414
Loans:
Ending balance	$	22,744		$	149,732		$	41,850	$	696,272	$	257,305		$	12,188		$	151,275		$	—		$	1,331,366
Loans deemed to be impaired	$	103		$	853		$	—	$	4,317	$	962		$	—		$	92		$	—		$	6,327
Loans not deemed to be impaired	$	22,641		$	148,879		$	41,850	$	691,955	$	256,343		$	12,188		$	151,183		$	—		$	1,325,039

Further information pertaining to the allowance for loan losses at December 31, 2013 follows:

	Construction and Land Development			Commercial and Industrial			Municipal		Commercial Real Estate		Residential Real Estate		Consumer			Home Equity		Unallocated		Total
(dollars in thousands)
Allowance for Loan Losses:
Balance at December 31, 2012	$	3,041		$	3,118		$	24	$	9,041	$	1,994	$	333		$	886	$	760	$	19,197
Charge-offs		(1,000	)		(234	)		—		—		—		(579	)		—		—		(1,813	)
Recoveries		—			389			—		19		11		427			1		—		847
Provision		133			(656	)		631		1,875		1		251			72		403		2,710
Ending balance at December 31, 2013	$	2,174		$	2,617		$	655	$	10,935	$	2,006	$	432		$	959	$	1,163	$	20,941
Amount of allowance for loan losses for loans deemed to be impaired	$	12		$	367		$	—	$	417	$	129	$	—		$	94	$	—	$	1,019
Amount of allowance for loan losses for loans not deemed to be impaired	$	2,162		$	2,250		$	655	$	10,518	$	1,877	$	432		$	865	$	1,163	$	19,922
Loans:
Ending balance	$	33,058		$	76,675		$	32,737	$	696,317	$	286,041	$	9,658		$	130,277	$	—	$	1,264,763
Loans deemed to be impaired	$	608		$	1,367		$	—	$	4,520	$	1,199	$	—		$	94	$	—	$	7,788
Loans not deemed to be impaired	$	32,450		$	75,308		$	32,737	$	691,797	$	284,842	$	9,658		$	130,183	$	—	$	1,256,975

Loans by Risk Rating

The following table presents the Company’s loans by risk rating at December 31, 2014.

	Construction and Land Development		Commercial and Industrial		Municipal		Commercial Real Estate
(dollars in thousands)
Grade:
1-3 (Pass)	$	15,515	$	148,407	$	41,850	$	691,322
4 (Monitor)		7,126		472		—		633
5 (Substandard)		—		—		—		—
6 (Doubtful)		—		—		—		—
Impaired		103		853		—		4,317
Total	$	22,744	$	149,732	$	41,850	$	696,272

The following table presents the Company’s loans by risk rating at December 31, 2013.

	Construction and Land Development		Commercial and Industrial		Municipal		Commercial Real Estate
(dollars in thousands)
Grade:
1-3 (Pass)	$	25,138	$	74,836	$	32,737	$	690,451
4 (Monitor)		7,312		472		—		1,346
5 (Substandard)		—		—		—		—
6 (Doubtful)		—		—		—		—
Impaired		608		1,367		—		4,520
Total	$	33,058	$	76,675	$	32,737	$	696,317

Aging of Past Due Loan Losses

Further information pertaining to the allowance for loan losses at December 31, 2014 follows:

	Accruing 30-89 Days Past Due		Non Accrual		Accruing Greater Than 90 Days		Total Past Due		Current Loans		Total
(dollars in thousands)
Construction and land development	$	—	$	103	$	—	$	103	$	22,641	$	22,744
Commercial and industrial		905		157		—		1,062		148,670		149,732
Municipal		—		—		—		—		41,850		41,850
Commercial real estate		1,046		2,781		—		3,827		692,445		696,272
Residential real estate		632		846		—		1,478		255,827		257,305
Consumer and overdrafts		6		5		—		11		12,177		12,188
Home equity		576		254		—		830		150,445		151,275
Total	$	3,165	$	4,146	$	—	$	7,311	$	1,324,055	$	1,331,366

Further information pertaining to the allowance for loan losses at December 31, 2013 follows:

	Accruing 30-89 Days Past Due		Non Accrual		Accruing Greater Than 90 Days		Total Past Due		Current Loans		Total
(dollars in thousands)
Construction and land development	$	—	$	500	$	—	$	500	$	32,558	$	33,058
Commercial and industrial		112		706		—		818		75,857		76,675
Municipal		—		—		—		—		32,737		32,737
Commercial real estate		1,496		306		—		1,802		694,515		696,317
Residential real estate		2,232		1,034		—		3,266		282,775		286,041
Consumer and overdrafts		11		3		—		14		9,644		9,658
Home equity		1,710		—		—		1,710		128,567		130,277
Total	$	5,561	$	2,549	$	—	$	8,110	$	1,256,653	$	1,264,763

Information Pertaining to Impaired Loans

The following is information pertaining to impaired loans at December 31, 2014:

	Carrying Value		Unpaid Balance Principal		Required Reserve		Average Carrying Value Recognized		Interest Income
(dollars in thousands)
With no required reserve recorded:
Construction and land development	$	—	$	—	$	—	$	173	$	—
Commercial and industrial		31		32		—		46		—
Municipal		—		—		—		—		—
Commercial real estate		393		396		—		225		—
Residential real estate		136		219		—		77		9
Consumer		—		—		—		—		—
Home equity		—		—		—		—		—
Total	$	560	$	647	$	—	$	521	$	9
With required reserve recorded:
Construction and land development	$	103	$	108	$	21	$	222	$	—
Commercial and industrial		822		1,063		57		1,065		31
Municipal		—		—		—		—		—
Commercial real estate		3,924		4,018		639		4,325		103
Residential real estate		826		826		95		1,208		1
Consumer		—		—		—		—		—
Home equity		92		92		92		93		—
Total	$	5,767	$	6,107	$	904	$	6,913	$	135
Total
Construction and land development	$	103	$	108	$	21	$	395	$	—
Commercial and industrial		853		1,095		57		1,111		31
Municipal		—		—		—		—		—
Commercial real estate		4,317		4,414		639		4,550		103
Residential real estate		962		1,045		95		1,285		10
Consumer		—		—		—		—		—
Home equity		92		92		92		93		—
Total	$	6,327	$	6,754	$	904	$	7,434	$	144

The following is information pertaining to impaired loans at December 31, 2013:

	Carrying Value		Unpaid Balance Principal		Required Reserve		Average Carrying Value Recognized		Interest Income
(dollars in thousands)
With no required reserve recorded:
Construction and land development	$	500	$	3,292	$	—	$	—	$	—
Commercial and industrial		238		268		—		361		1
Municipal		—		—		—		—		—
Commercial real estate		82		82		—		132		—
Residential real estate		246		259		—		169		—
Consumer		—		—		—		—		—
Home equity		—		—		—		—		—
Total	$	1,066	$	3,901	$	—	$	662	$	1
With required reserve recorded:
Construction and land development	$	108	$	108	$	12	$	1,371	$	1
Commercial and industrial		1,129		1,371		367		902		37
Municipal		—		—		—		—		—
Commercial real estate		4,438		4,527		417		2,868		120
Residential real estate		953		1,035		129		878		2
Consumer		—		—		—		—		—
Home equity		94		94		94		95		—
Total	$	6,722	$	7,135	$	1,019	$	6,114	$	160
Total
Construction and land development	$	608	$	3,400	$	12	$	1,371	$	1
Commercial and industrial		1,367		1,639		367		1,263		38
Municipal		—		—		—		—		—
Commercial real estate		4,520		4,609		417		3,000		120
Residential real estate		1,199		1,294		129		1,047		2
Consumer		—		—		—		—		—
Home equity		94		94		94		95		—
Total	$	7,788	$	11,036	$	1,019	$	6,776	$	161

Troubled Debt Restructurings

The following is information pertaining to troubled debt restructurings occurring during the year ended December 31, 2014:

	Number of Contracts		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
(dollars in thousands)
Commercial and industrial		2	$	98	$	98
Total		2	$	98	$	98

The following is information pertaining to troubled debt restructurings occurring during the year ended December 31, 2013:

	Number of Contracts		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded  Investment
(dollars in thousands)
Construction and land development		1	$	108	$	108
Commercial and industrial		2		67		64
Commercial real estate		3		2,376		2,356
Residential real estate		1		285		162
Total		7	$	2,836	$	2,690