Loans (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of major classifications of loans


	June 30, 2018		December 31, 2017
Commercial	$	299,536	$	272,851
Leases		66,687		68,325
Real estate - commercial		808,264		750,991
Real estate - construction		115,486		85,162
Real estate - residential		404,908		313,397
Home equity lines of credit "HELOC"		127,986		112,833
Other 1		13,969		13,384
Total loans, excluding deferred loan costs and PCI loans		1,836,836		1,616,942
Net deferred loan costs		1,112		680
Total loans, excluding PCI loans		1,837,948		1,617,622
PCI loans, net of purchase accounting adjustments		11,214		-
Total loans	$	1,849,162	$	1,617,622

Schedule of aged analysis of past due loans by class of loans


															Recorded
															Investment
															90 days or
					90 Days or										Greater Past
	30-59 Days		60-89 Days		Greater Past		Total Past								Due and
June 30, 2018	Past Due		Past Due		Due		Due		Current		Nonaccrual		Total Loans		Accruing
Commercial	$	210	$	-	$	-	$	210	$	299,326	$	-	$	299,536	$	-
Leases		-		-		-		-		66,687		-		66,687		-
Real estate - commercial
Owner occupied general purpose		903		-		450		1,353		172,922		823		175,098		477
Owner occupied special purpose		1,981		-		-		1,981		194,604		426		197,011		-
Non-owner occupied general purpose		3,282		-		174		3,456		279,599		39		283,094		178
Non-owner occupied special purpose		-		-		-		-		87,704		3,099		90,803		-
Retail properties		-		-		-		-		47,582		-		47,582		-
Farm		-		-		-		-		14,676		-		14,676		-
Real estate - construction
Homebuilder		-		-		-		-		7,649		-		7,649		-
Land		-		-		-		-		9,168		-		9,168		-
Commercial speculative		-		-		-		-		39,730		-		39,730		-
All other		59		-		442		501		58,245		193		58,939		475
Real estate - residential
Investor		466		108		38		612		72,896		371		73,879		40
Multifamily		232		-		-		232		191,883		-		192,115		-
Owner occupied		710		208		-		918		134,265		3,731		138,914		-
HELOC		599		172		49		820		126,443		723		127,986		50
Other 1		39		-		-		39		15,026		16		15,081		-
Total, excluding PCI loans	$	8,481	$	488	$	1,153	$	10,122	$	1,818,405	$	9,421	$	1,837,948	$	1,220
PCI loans, net of purchase accounting adjustments		387		-		-		387		7,850		2,977		11,214
Total	$	8,868	$	488	$	1,153	$	10,509	$	1,826,255	$	12,398	$	1,849,162	$	1,220


															Recorded
															Investment
															90 days or
					90 Days or										Greater Past
	30-59 Days		60-89 Days		Greater Past		Total Past								Due and
December 31, 2017	Past Due		Past Due		Due		Due		Current		Nonaccrual		Total Loans		Accruing
Commercial	$	995	$	275	$	-	$	1,270	$	271,581	$	-	$	272,851	$	-
Leases		-		-		-		-		68,147		178		68,325		-
Real estate - commercial
Owner occupied general purpose		1,136		-		-		1,136		144,267		455		145,858		-
Owner occupied special purpose		226		-		-		226		170,546		342		171,114		-
Non-owner occupied general purpose		-		593		-		593		273,203		1,163		274,959		-
Non-owner occupied special purpose		-		-		248		248		92,923		-		93,171		254
Retail properties		-		-		-		-		49,538		1,081		50,619		-
Farm		-		-		-		-		15,270		-		15,270		-
Real estate - construction
Homebuilder		129		-		-		129		2,221		-		2,350		-
Land		1,124		-		-		1,124		1,319		-		2,443		-
Commercial speculative		-		-		-		-		32,028		-		32,028		-
All other		-		-		-		-		48,140		201		48,341		-
Real estate - residential
Investor		-		-		-		-		55,248		372		55,620		-
Multifamily		-		-		-		-		125,049		4,723		129,772		-
Owner occupied		74		-		-		74		123,257		4,674		128,005		-
HELOC		491		278		-		769		110,872		1,192		112,833		-
Other 1		37		-		-		37		14,019		7		14,063		-
Total	$	4,212	$	1,146	$	248	$	5,606	$	1,597,628	$	14,388	$	1,617,622	$	254

1 The “Other” class includes consumer, overdrafts and net deferred costs.

Schedule of credit quality indicators by class of loans


June 30, 2018			Special
	Pass		Mention		Substandard 2		Doubtful		Total
Commercial	$	298,512	$	631	$	393	$	-	$	299,536
Leases		66,148		-		539		-		66,687
Real estate - commercial
Owner occupied general purpose		166,962		4,915		3,221		-		175,098
Owner occupied special purpose		195,009		254		1,748		-		197,011
Non-owner occupied general purpose		275,728		4,899		2,467		-		283,094
Non-owner occupied special purpose		87,704		-		3,099		-		90,803
Retail Properties		45,755		-		1,827		-		47,582
Farm		13,428		-		1,248		-		14,676
Real estate - construction
Homebuilder		7,649		-		-		-		7,649
Land		9,168		-		-		-		9,168
Commercial speculative		39,730		-		-		-		39,730
All other		56,443		2,130		366		-		58,939
Real estate - residential
Investor		72,759		91		1,029		-		73,879
Multifamily		188,813		-		3,302		-		192,115
Owner occupied		133,485		1		5,428		-		138,914
HELOC		126,353		-		1,633		-		127,986
Other 1		15,063		-		18		-		15,081
Total, excluding PCI loans	$	1,798,709	$	12,921	$	26,318	$	-	$	1,837,948
PCI loans, net of purchase accounting adjustments		-		-		11,214		-		11,214
Total	$	1,798,709	$	12,921	$	37,532	$	-	$	1,849,162


December 31, 2017			Special
	Pass		Mention		Substandard 2		Doubtful		Total
Commercial	$	270,889	$	1,962	$	-	$	-	$	272,851
Leases		67,500		-		825		-		68,325
Real estate - commercial
Owner occupied general purpose		142,843		1,927		1,088		-		145,858
Owner occupied special purpose		169,621		1,152		341		-		171,114
Non-owner occupied general purpose		271,731		2,065		1,163		-		274,959
Non-owner occupied special purpose		89,582		-		3,589		-		93,171
Retail Properties		48,321		1,217		1,081		-		50,619
Farm		11,755		1,029		2,486		-		15,270
Real estate - construction
Homebuilder		2,350		-		-		-		2,350
Land		2,443		-		-		-		2,443
Commercial speculative		32,028		-		-		-		32,028
All other		46,913		1,052		376		-		48,341
Real estate - residential
Investor		55,172		-		448		-		55,620
Multifamily		125,049		-		4,723		-		129,772
Owner occupied		122,178		561		5,266		-		128,005
HELOC		110,934		-		1,899		-		112,833
Other 1		14,043		-		20		-		14,063
Total	$	1,583,352	$	10,965	$	23,305	$	-	$	1,617,622

1 The “Other” class includes consumer, overdrafts and net deferred costs.

2 The substandard credit quality indicator includes both potential problem loans that are currently performing and nonperforming loans.

Schedule of impaired loans by class of loan


							Six Months Ended
	As of June 30, 2018						June 30, 2018
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
With no related allowance recorded
Commercial	$	-	$	-	$	-	$	-	$	-
Leases		-		-		-		89		-
Commercial real estate
Owner occupied general purpose		911		985		-		683		3
Owner occupied special purpose		426		546		-		384		-
Non-owner occupied general purpose		39		81		-		601		-
Non-owner occupied special purpose		-		-		-		-		-
Retail properties		-		-		-		541		-
Farm		-		-		-		-		-
Construction
Homebuilder		-		-		-		-		-
Land		-		-		-		-		-
Commercial speculative		-		-		-		-		-
All other		193		226		-		197		-
Residential
Investor		371		468		-		371		-
Multifamily		-		-		-		2,362		-
Owner occupied		4,244		5,769		-		4,726		18
HELOC		741		860		-		933		1
Other 1		16		16		-		11		-
Total impaired loans with no recorded allowance		6,941		8,951		-		10,898		22

With an allowance recorded
Commercial		-		-		-		-		-
Leases		-		-		-		-		-
Commercial real estate
Owner occupied general purpose		-		-		-		-		-
Owner occupied special purpose		-		-		-		-		-
Non-owner occupied general purpose		-		-		-		-		-
Non-owner occupied special purpose		3,099		3,575		419		1,550		-
Retail properties		-		-		-		-		-
Farm		-		-		-		-		-
Construction
Homebuilder		-		-		-		-		-
Land		-		-		-		-		-
Commercial speculative		-		-		-		-		-
All other		-		-		-		-		-
Residential
Investor		815		815		10		822		22
Multifamily		-		-		-		-		-
Owner occupied		3,646		3,646		45		3,544		73
HELOC		1,321		1,321		24		1,153		24
Other 1		3		3		-		2		-
Total impaired loans with a recorded allowance		8,884		9,360		498		7,071		119
Total impaired loans	$	15,825	$	18,311	$	498	$	17,969	$	141

1 The “Other” class includes consumer, overdrafts and net deferred costs.

Impaired loans by class of loans as of December 31, 2017, and for the six months ended June 30, 2017, were as follows:


							Six Months Ended
	As of December 31, 2017						June 30, 2017
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
With no related allowance recorded
Commercial	$	-	$	-	$	-	$	128	$	-
Leases		178		213		-		293		-
Commercial real estate
Owner occupied general purpose		455		495		-		1,170		-
Owner occupied special purpose		342		498		-		376		-
Non-owner occupied general purpose		1,163		1,538		-		1,443		1
Non-owner occupied special purpose		-		-		-		507		-
Retail properties		1,081		1,177		-		1,161		-
Farm		-		-		-		-		-
Construction
Homebuilder		-		-		-		-		-
Land		-		-		-		-		-
Commercial speculative		-		-		-		72		-
All other		201		229		-		180		-
Residential
Investor		372		676		-		1,708		20
Multifamily		4,723		4,965		-		2,412		-
Owner occupied		5,208		6,680		-		9,016		65
HELOC		1,125		1,313		-		2,227		15
Other 1		7		8		-		105		-
Total impaired loans with no recorded allowance		14,855		17,792		-		20,798		101

With an allowance recorded
Commercial		-		-		-		-		-
Leases		-		-		-		120		-
Commercial real estate
Owner occupied general purpose		-		-		-		-		-
Owner occupied special purpose		-		-		-		-		-
Non-owner occupied general purpose		-		-		-		123		-
Non-owner occupied special purpose		-		-		-		-		-
Retail properties		-		-		-		-		-
Farm		-		-		-		-		-
Construction
Homebuilder		-		-		-		-		-
Land		-		-		-		-		-
Commercial speculative		-		-		-		-		-
All other		-		-		-		-		-
Residential
Investor		829		829		10		-		-
Multifamily		-		-		-		-		-
Owner occupied		3,443		3,443		43		402		-
HELOC		985		985		91		-		-
Other 1		-		-		-		-		-
Total impaired loans with a recorded allowance		5,257		5,257		144		645		-
Total impaired loans	$	20,112	$	23,049	$	144	$	21,443	$	101

Schedule of TDRs modified during the period by type of modification

TDRs that were modified during the period are as follows:


	TDR Modifications					TDR Modifications
	Three Months Ended June 30, 2018					Six Months Ended June 30, 2018
	# of	Pre-modification		Post-modification		# of	Pre-modification		Post-modification
	contracts	recorded investment		recorded investment		contracts	recorded investment		recorded investment
Troubled debt restructurings
Real estate - commercial
Owner occupied special purpose
Other1	1	$	110	$	56	1	$	110	$	56
Real estate - residential
Owner occupied
HAMP2	1		49		39	1		49		39
Other1
HELOC
Rate3						1		24		24
Other1	3		305		287	7		523		503
Total	5	$	464	$	382	10	$	706	$	622


	TDR Modifications					TDR Modifications
	Three Months Ended June 30, 2017					Six Months Ended June 30, 2017
	# of	Pre-modification		Post-modification		# of	Pre-modification		Post-modification
	contracts	recorded investment		recorded investment		contracts	recorded investment		recorded investment
Troubled debt restructurings
HELOC
Other1	2	$	155	$	147	6	$	399	$	388
Total	2	$	155	$	147	6	$	399	$	388

1 Other: Change of terms from bankruptcy court.

2 HAMP: Home Affordable Modification Program.

3 Rate: Refers to interest rate reduction

Schedule of accretable discount on purchased loans

The following table details the accretable discount on all of the Company’s purchased loans, both non-PCI loans and PCI loans as of June 30, 2018.


	Accretable Discount - Non-PCI Loans		Accretable Discount - PCI Loans		Non-Accretable Discount - PCI Loans		Total
Beginning balance, April 1, 2018	$	694	$	-	$	-	$	694
Purchases		3,182		1,551		6,536		11,269
Accretion		(881)		(176)		-		(1,057)
Transfer1		-		(2)		(133)		(135)
Ending balance, June 30, 2018	$	2,995	$	1,373	$	6,403	$	10,771

1 Transfer was due to loans moved to OREO.