Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2016

Receivables [Abstract]

Analysis of Allowance for Loan Losses

An analysis of the allowance for loan losses for each of the three years ending December 31, 2016, 2015 and 2014 is as follows:

	2016			2015			2014
(dollars in thousands)
Allowance for loan losses, beginning of year	$	23,075		$	22,318		$	20,941
Loans charged-off		(389	)		(781	)		(1,382	)
Recoveries on loans previously charged-off		434			1,338			709
Net recoveries (charge-offs)		45			557			(673	)
Provision charged to expense		1,375			200			2,050
Reclassification to other liabilities*		(89	)		—			—
Allowance for loan losses, end of year	$	24,406		$	23,075		$	22,318

* The reclassification relates to allowance for loan losses allocations on unused commitments that have been reclassified to other liabilities.

Summary of Allowance for Loan Losses

Further information pertaining to the allowance for loan losses at December 31, 2016 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, 2015	$	2,041		$	5,899		$	994	$	10,589		$	1,320		$	644		$	1,077		$	511		$	23,075
Charge-offs		—			—			—		—			—			(362	)		(27	)		—			(389	)
Recoveries		—			132			—		—			6			296			—			—			434
Reclassification to other liabilities		(5	)		(25	)		—		(9	)		(3	)		(3	)		(44	)		—			(89	)
Provision		(1,024	)		966			618		555			375			7			96			(218	)		1,375
Ending balance at December 31, 2016	$	1,012		$	6,972		$	1,612	$	11,135		$	1,698		$	582		$	1,102		$	293		$	24,406
Amount of allowance for loan losses for loans deemed to be impaired	$	3		$	23		$	—	$	140		$	7		$	—		$	—		$	—		$	173
Amount of allowance for loan losses for loans not deemed to be impaired	$	1,009		$	6,949		$	1,612	$	10,995		$	1,691		$	582		$	1,102		$	293		$	24,233
Loans:
Ending balance	$	14,928		$	612,503		$	135,418	$	696,173		$	241,357		$	11,697		$	211,857		$	—		$	1,923,933
Loans deemed to be impaired	$	94		$	389		$	—	$	3,149		$	198		$	—		$	—		$	—		$	3,830
Loans not deemed to be impaired	$	14,834		$	612,114		$	135,418	$	693,024		$	241,159		$	11,697		$	211,857		$	—		$	1,920,103

Further information pertaining to the allowance for loan losses at December 31, 2015 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, 2014	$	1,592		$	4,757		$	1,488		$	11,199		$	776	$	810		$	599	$	1,097		$	22,318
Charge-offs		—			(172	)		—			(298	)		—		(311	)		—		—			(781	)
Recoveries		780			212			—			84			7		255			—		—			1,338
Provision		(331	)		1,102			(494	)		(396	)		537		(110	)		478		(586	)		200
Ending balance at December 31, 2015	$	2,041		$	5,899		$	994		$	10,589		$	1,320	$	644		$	1,077	$	511		$	23,075
Amount of allowance for loan losses for loans deemed to be impaired	$	10		$	19		$	—		$	99		$	32	$	—		$	90	$	—		$	250
Amount of allowance for loan losses for loans not deemed to be impaired	$	2,031		$	5,880		$	994		$	10,490		$	1,288	$	644		$	987	$	511		$	22,825
Loans:
Ending balance	$	27,421		$	452,235		$	85,685		$	721,506		$	255,346	$	11,323		$	178,020	$	—		$	1,731,536
Loans deemed to be impaired	$	98		$	443		$	—		$	1,678		$	916	$	—		$	90	$	—		$	3,225
Loans not deemed to be impaired	$	27,323		$	451,792		$	85,685		$	719,828		$	254,430	$	11,323		$	177,930	$	—		$	1,728,311

Loans by Risk Rating

The following table presents the Company’s loans by risk rating at December 31, 2016.

	Construction and Land Development		Commercial and Industrial		Municipal		Commercial Real Estate
(dollars in thousands)
Grade:
1-3 (Pass)	$	14,834	$	612,114	$	135,418	$	661,271
4 (Monitor)		—		—		—		31,753
5 (Substandard)		—		—		—		—
6 (Doubtful)		—		—		—		—
Impaired		94		389		—		3,149
Total	$	14,928	$	612,503	$	135,418	$	696,173

The following table presents the Company’s loans by risk rating at December 31, 2015.

	Construction and Land Development		Commercial and Industrial		Municipal		Commercial Real Estate
(dollars in thousands)
Grade:
1-3 (Pass)	$	20,281	$	451,774	$	85,685	$	718,911
4 (Monitor)		7,042		18		—		917
5 (Substandard)		—		—		—		—
6 (Doubtful)		—		—		—		—
Impaired		98		443		—		1,678
Total	$	27,421	$	452,235	$	85,685	$	721,506

Loans by Credit Rating

The following table presents the Company’s loans by credit rating at December 31, 2016.

	Commercial and Industrial		Municipal		Commercial Real Estate		Total
(dollars in thousands)
Credit Rating:
Aaa-Aa3	$	334,674	$	66,245	$	6,596	$	407,515
A1-A3		188,777		33,365		129,423		351,565
Baa1-Baa3		—		26,970		127,366		154,336
Ba2		—		3,610		—		3,610
Total	$	523,451	$	130,190	$	263,385	$	917,026

The following table presents the Company’s loans by credit rating at December 31, 2015.

	Commercial and Industrial		Municipal		Commercial Real Estate		Total
(dollars in thousands)
Credit Rating:
Aaa-Aa3	$	234,733	$	63,865	$	7,547	$	306,145
A1-A3		140,419		7,400		130,872		278,691
Baa1-Baa3		—		8,890		167,489		176,379
Ba2		—		4,480		—		4,480
Total	$	375,152	$	84,635	$	305,908	$	765,695

Aging of Past Due Loan Losses

At December 31, 2016 the aging of past due loans are as 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	$	—	$	94	$	—	$	94	$	14,834	$	14,928
Commercial and industrial		37		65		—		102		612,401		612,503
Municipal		—		—		—		—		135,418		135,418
Commercial real estate		597		150		—		747		695,426		696,173
Residential real estate		245		656		—		901		240,456		241,357
Consumer and overdrafts		—		11		—		11		11,686		11,697
Home equity		735		108		—		843		211,014		211,857
Total	$	1,614	$	1,084	$	—	$	2,698	$	1,921,235	$	1,923,933

At December 31, 2015 the aging of past due loans are as 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	$	—	$	99	$	—	$	99	$	27,322	$	27,421
Commercial and industrial		—		60		—		60		452,175		452,235
Municipal		—		—		—		—		85,685		85,685
Commercial real estate		1,462		174		—		1,636		719,870		721,506
Residential real estate		596		1,559		—		2,155		253,191		255,346
Consumer and overdrafts		6		—		—		6		11,317		11,323
Home equity		628		444		—		1,072		176,948		178,020
Total	$	2,692	$	2,336	$	—	$	5,028	$	1,726,508	$	1,731,536

Information Pertaining to Impaired Loans

The following is information pertaining to impaired loans at December 31, 2016:

	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	$	—	$	—	$	—	$	—	$	—
Commercial and industrial		45		232		—		53		—
Municipal		—		—		—		—		—
Commercial real estate		590		590		—		375		39
Residential real estate		90		179		—		102		7
Consumer		—		—		—		—		—
Home equity		—		—		—		—		—
Total	$	725	$	1,001	$	—	$	530	$	46
With required reserve recorded:
Construction and land development	$	94	$	108	$	3	$	96	$	—
Commercial and industrial		344		360		23		360		18
Municipal		—		—		—		—		—
Commercial real estate		2,559		2,665		140		2,324		71
Residential real estate		108		108		7		323		5
Consumer		—		—		—		—		—
Home equity		—		—		—		28		—
Total	$	3,105	$	3,241	$	173	$	3,131	$	94
Total
Construction and land development	$	94	$	108	$	3	$	96	$	—
Commercial and industrial		389		592		23		413		18
Municipal		—		—		—		—		—
Commercial real estate		3,149		3,255		140		2,699		110
Residential real estate		198		287		7		425		12
Consumer		—		—		—		—		—
Home equity		—		—		—		28		—
Total	$	3,830	$	4,242	$	173	$	3,661	$	140

The following is information pertaining to impaired loans at December 31, 2015:

	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	$	—	$	—	$	—	$	—	$	—
Commercial and industrial		60		246		—		32		—
Municipal		—		—		—		—		—
Commercial real estate		—		—		—		151		—
Residential real estate		114		200		—		125		8
Consumer		—		—		—		—		—
Home equity		—		—		—		—		—
Total	$	174	$	446	$	—	$	308	$	8
With required reserve recorded:
Construction and land development	$	98	$	108	$	10	$	101	$	—
Commercial and industrial		383		399		19		626		20
Municipal		—		—		—		—		—
Commercial real estate		1,678		1,776		99		2,550		69
Residential real estate		802		802		32		814		7
Consumer		—		—		—		—		—
Home equity		90		90		90		91		—
Total	$	3,051	$	3,175	$	250	$	4,182	$	96
Total
Construction and land development	$	98	$	108	$	10	$	101	$	—
Commercial and industrial		443		645		19		658		20
Municipal		—		—		—		—		—
Commercial real estate		1,678		1,776		99		2,701		69
Residential real estate		916		1,002		32		939		15
Consumer		—		—		—		—		—
Home equity		90		90		90		91		—
Total	$	3,225	$	3,621	$	250	$	4,490	$	104