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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 6 Months Ended
Jun. 30, 2019
Receivables [Abstract]  
Summary of Loan Portfolio, Excluding Residential Loans Held for Sale, Broken Out by Classes
The following table presents the loan portfolio by segment and class, excluding residential LHFS, at June 30, 2019 and December 31, 2018.
(Dollars in thousands)June 30, 2019December 31, 2018
Commercial real estate:
Owner occupied$170,272 $129,650 
Non-owner occupied298,989 252,794 
Multi-family93,342 78,933 
Non-owner occupied residential121,364 100,367 
Acquisition and development:
1-4 family residential construction12,801 7,385 
Commercial and land development57,027 42,051 
Commercial and industrial219,551 160,964 
Municipal48,358 50,982 
Residential mortgage:
First lien363,946 235,296 
Home equity - term15,989 12,208 
Home equity - lines of credit157,645 143,616 
Installment and other loans42,386 33,411 
Total Loans (1)
$1,601,670 $1,247,657 
(1) Includes $453,280,000 and $135,009,000 of acquired loans at June 30, 2019 and December 31, 2018.
Bank's Ratings Based on its Internal Risk Rating System
The following table summarizes the Company’s loan portfolio ratings based on its internal risk rating system at June 30, 2019 and December 31, 2018.
(Dollars in thousands)PassSpecial MentionNon-Impaired SubstandardImpaired - SubstandardDoubtfulPCI LoansTotal
June 30, 2019
Commercial real estate:
Owner occupied$158,247 $1,366 $878 $1,737 $0 $8,044 $170,272 
Non-owner occupied286,669 10,935 0 0 0 1,385 298,989 
Multi-family86,765 5,065 700 114 0 698 93,342 
Non-owner occupied residential114,607 2,264 1,156 270 0 3,067 121,364 
Acquisition and development:
1-4 family residential construction12,151 650 0 0 0 0 12,801 
Commercial and land development56,268 188 571 0 0 0 57,027 
Commercial and industrial198,699 9,523 6,946 253 0 4,130 219,551 
Municipal48,358 0 0 0 0 0 48,358 
Residential mortgage:
First lien351,523 0 0 2,392 0 10,031 363,946 
Home equity - term15,877 79 0 12 0 21 15,989 
Home equity - lines of credit156,731 187 22 705 0 0 157,645 
Installment and other loans42,089 0 0 8 0 289 42,386 
$1,527,984 $30,257 $10,273 $5,491 $0 $27,665 $1,601,670 
December 31, 2018
Commercial real estate:
Owner occupied$121,903 $3,024 $987 $1,880 $0 $1,856 $129,650 
Non-owner occupied242,136 10,008 0 0 0 650 252,794 
Multi-family71,482 5,886 717 131 0 717 78,933 
Non-owner occupied residential97,590 736 1,197 309 0 535 100,367 
Acquisition and development:
1-4 family residential construction7,385 0 0 0 0 0 7,385 
Commercial and land development41,251 25 583 0 0 192 42,051 
Commercial and industrial150,286 2,278 2,940 286 0 5,174 160,964 
Municipal50,982 0 0 0 0 0 50,982 
Residential mortgage:
First lien229,971 0 0 2,877 0 2,448 235,296 
Home equity - term12,170 0 0 16 0 22 12,208 
Home equity - lines of credit142,638 165 15 798 0 0 143,616 
Installment and other loans33,229 15 1 0 0 166 33,411 
$1,201,023 $22,137 $6,440 $6,297 $0 $11,760 $1,247,657 
Impaired Loans by Class
The following table, which excludes PCI loans, summarizes impaired loans by segment and class, segregated by those for which a specific allowance was required and those for which a specific allowance was not required at June 30, 2019 and December 31, 2018. The recorded investment in loans excludes accrued interest receivable due to insignificance. Related allowances established generally pertain to those loans in which loan forbearance agreements were in the process of being negotiated or updated appraisals were pending, and any partial charge-off will be recorded when final information is received.
 
Impaired Loans with a Specific AllowanceImpaired Loans with No Specific Allowance
(Dollars in thousands)Recorded
Investment
(Book Balance)		Unpaid Principal
Balance
(Legal Balance)		Related
Allowance		Recorded
Investment
(Book Balance)		Unpaid Principal
Balance
(Legal Balance)
June 30, 2019
Commercial real estate:
Owner occupied$0 $0 $0 $1,737 $2,509 
Multi-family0 0 0 114 329 
Non-owner occupied residential0 0 0 270 612 
Commercial and industrial0 0 0 253 439 
Residential mortgage:
First lien554 554 37 1,838 2,940 
Home equity - term0 0 0 12 20 
Home equity - lines of credit0 0 0 705 999 
Installment and other loans0 0 0 8 17 
$554 $554 $37 $4,937 $7,865 
December 31, 2018
Commercial real estate:
Owner occupied$0 $0 $0 $1,880 $2,576 
Multi-family0 0 0 131 336 
Non-owner occupied residential0 0 0 309 632 
Commercial and industrial0 0 0 286 457 
Residential mortgage:
First lien743 743 38 2,134 2,727 
Home equity - term0 0 0 16 23 
Home equity - lines of credit0 0 0 798 1,081 
$743 $743 $38 $5,554 $7,832 
Average Recorded Investment in Impaired Loans and Related Interest Income
The following table, which excludes PCI loans, summarizes the average recorded investment in impaired loans and related recognized interest income for the three and six months ended June 30, 2019 and 2018.
2019 2018 
(Dollars in thousands)Average
Impaired
Balance		Interest
Income
Recognized		Average
Impaired
Balance		Interest
Income
Recognized
Three Months Ended June 30,
Commercial real estate:
Owner-occupied$1,770 $1 $1,233 $0 
Non-owner occupied0 0 2,960 0 
Multi-family118 0 153 0 
Non-owner occupied residential282 0 356 0 
Acquisition and development:
1-4 family residential construction0 0 201 0 
Commercial and industrial260 0 330 0 
Residential mortgage:
First lien2,512 14 3,310 14 
Home equity – term13 0 20 0 
Home equity - lines of credit709 1 667 1 
Installment and other loans9 0 5 0 
$5,673 $16 $9,235 $15 
Six Months Ended June 30,
Commercial real estate:
Owner occupied$1,819 $1 $1,233 $1 
Non-owner occupied0 0 3,421 0 
Multi-family122 0 157 0 
Non-owner occupied residential291 0 364 0 
Acquisition and development:
1-4 family residential construction0 0 250 0 
Commercial and industrial269 0 336 0 
Residential mortgage:
First lien2,652 29 3,538 29 
Home equity - term14 0 20 0 
Home equity - lines of credit736 1 589 1 
Installment and other loans8 0 8 0 
$5,911 $31 $9,916 $31 
Troubled Debt Restructurings
The following table presents impaired loans that are TDRs, with the recorded investment at June 30, 2019 and December 31, 2018.

June 30, 2019December 31, 2018
(Dollars in thousands)Number of
Contracts		Recorded
Investment		Number of
Contracts		Recorded
Investment
Accruing:
Commercial real estate:
Owner occupied1 $31 1 $39 
Residential mortgage:
First lien11 1,052 11 1,069 
Home equity - lines of credit1 21 1 24 
13 1,104 13 1,132 
Nonaccruing:
Commercial real estate:
Owner occupied1 34 1 37 
Residential mortgage:
First lien7 438 8 658 
8 472 9 695 
21 $1,576 22 $1,827 
Loan Portfolio Summarized by Aging Categories of Performing Loans and Nonaccrual Loans The following table presents the classes of loan portfolio summarized by aging categories of performing loans and nonaccrual loans at June 30, 2019 and December 31, 2018.
Days Past Due
(Dollars in thousands)Current30-5960-8990+
(still accruing)		Total
Past Due		Non-
Accrual		Total
Loans
June 30, 2019
Commercial real estate:
Owner occupied$160,522 $0 $0 $0 $0 $1,706 $162,228 
Non-owner occupied297,509 95 0 0 95 0 297,604 
Multi-family92,280 250 0 0 250 114 92,644 
Non-owner occupied residential117,729 298 0 0 298 270 118,297 
Acquisition and development:
1-4 family residential construction12,801 0 0 0 0 0 12,801 
Commercial and land development57,002 0 25 0 25 0 57,027 
Commercial and industrial214,816 254 98 0 352 253 215,421 
Municipal48,358 0 0 0 0 0 48,358 
Residential mortgage:
First lien350,054 1,826 695 0 2,521 1,340 353,915 
Home equity - term15,951 5 0 0 5 12 15,968 
Home equity - lines of credit156,226 498 237 0 735 684 157,645 
Installment and other loans41,880 162 47 0 209 8 42,097 
Subtotal1,565,128 3,388 1,102 0 4,490 4,387 1,574,005 
Loans acquired with credit deterioration:
Commercial real estate:
Owner occupied8,005 0 0 39 39 0 8,044 
Non-owner occupied605 0 0 780 780 0 1,385 
Multi-family698 0 0 0 0 0 698 
Non-owner occupied residential2,997 0 0 70 70 0 3,067 
Commercial and industrial3,781 121 173 55 349 0 4,130 
Residential mortgage:
First lien8,745 365 204 717 1,286 0 10,031 
Home equity - term16 0 5 0 5 0 21 
Installment and other loans219 68 2 0 70 0 289 
Subtotal25,066 554 384 1,661 2,599 0 27,665 
$1,590,194 $3,942 $1,486 $1,661 $7,089 $4,387 $1,601,670 
Days Past Due
(Dollars in thousands)Current30-5960-8990+
(still accruing)		Total
Past Due		Non-
Accrual		Total
Loans
December 31, 2018
Commercial real estate:
Owner occupied$125,887 $66 $0 $0 $66 $1,841 $127,794 
Non-owner occupied252,144 0 0 0 0 0 252,144 
Multi-family78,085 0 0 0 0 131 78,216 
Non-owner occupied residential99,268 226 29 0 255 309 99,832 
Acquisition and development:
1-4 family residential construction7,385 0 0 0 0 0 7,385 
Commercial and land development41,822 37 0 0 37 0 41,859 
Commercial and industrial154,988 411 105 0 516 286 155,790 
Municipal50,982 0 0 0 0 0 50,982 
Residential mortgage:
First lien228,714 1,592 734 0 2,326 1,808 232,848 
Home equity - term11,487 678 5 0 683 16 12,186 
Home equity - lines of credit142,394 420 28 0 448 774 143,616 
Installment and other loans33,135 66 44 0 110 0 33,245 
Subtotal1,226,291 3,496 945 0 4,441 5,165 1,235,897 
Loans acquired with credit deterioration:
Commercial real estate:
Owner occupied1,784 0 72 0 72 0 1,856 
Non-owner occupied650 0 0 0 0 0 650 
Multi-family717 0 0 0 0 0 717 
Non-owner occupied residential535 0 0 0 0 0 535 
Acquisition and development:
Commercial and land development192 0 0 0 0 0 192 
Commercial and industrial4,943 231 0 0 231 0 5,174 
Residential mortgage:
First lien1,971 382 42 53 477 0 2,448 
Home equity - term17 5 0 0 5 0 22 
Installment and other loans149 13 0 4 17 0 166 
Subtotal10,958 631 114 57 802 0 11,760 
$1,237,249 $4,127 $1,059 $57 $5,243 $5,165 $1,247,657 
Activity in Allowance for Loan Losses
The following table presents the activity in the ALL for the three and six months ended June 30, 2019 and 2018.
CommercialConsumer
(Dollars in thousands)Commercial
Real Estate		Acquisition
and
Development		Commercial
and
Industrial		MunicipalTotalResidential
Mortgage		Installment
and Other		TotalUnallocatedTotal
Three Months Ended
June 30, 2019
Balance, beginning of period$7,025 $969 $1,814 $98 $9,906 $3,765 $217 $3,982 $395 $14,283 
Provision for loan losses(221)39 325 (4)139 (32)40 8 53 200 
Charge-offs0 0 (47)0 (47)(25)(51)(76)0 (123)
Recoveries43 0 28 0 71 26 3 29 0 100 
Balance, end of period$6,847 $1,008 $2,120 $94 $10,069 $3,734 $209 $3,943 $448 $14,460 
June 30, 2018
Balance, beginning of period$6,770 $510 $1,590 $83 $8,953 $3,382 $204 $3,586 $461 $13,000 
Provision for loan losses(418)208 8 (3)(205)237 44 281 124 200 
Charge-offs0 0 0 0 0 (86)(47)(133)0 (133)
Recoveries328 2 0 0 330 11 29 40 0 370 
Balance, end of period$6,680 $720 $1,598 $80 $9,078 $3,544 $230 $3,774 $585 $13,437 
Six Months Ended
June 30, 2019
Balance, beginning of period$6,876 $817 $1,656 $98 $9,447 $3,753 $244 $3,997 $570 $14,014 
Provision for loan losses(118)189 484 (4)551 157 14 171 (122)600 
Charge-offs(25)0 (90)0 (115)(271)(71)(342)0 (457)
Recoveries114 2 70 0 186 95 22 117 0 303 
Balance, end of period$6,847 $1,008 $2,120 $94 $10,069 $3,734 $209 $3,943 $448 $14,460 
June 30, 2018
Balance, beginning of period$6,763 $417 $1,446 $84 $8,710 $3,400 $211 $3,611 $475 $12,796 
Provision for loan losses(411)300 152 (4)37 202 51 253 110 400 
Charge-offs0 0 0 0 0 (86)(118)(204)0 (204)
Recoveries328 3 0 0 331 28 86 114 0 445 
Balance, end of period$6,680 $720 $1,598 $80 $9,078 $3,544 $230 $3,774 $585 $13,437 
Summary of Ending Loan Balances Individually Evaluated for Impairment Based on Loan Segment
The following table summarizes the ending loan balance individually evaluated for impairment based upon loan segment, as well as the related ALL loss allocation for each at June 30, 2019 and December 31, 2018, excluding PCI loans.
 CommercialConsumer  
(Dollars in thousands)Commercial
Real Estate		Acquisition
and
Development		Commercial
and
Industrial		MunicipalTotalResidential
Mortgage		Installment
and Other		TotalUnallocatedTotal
June 30, 2019
Loans allocated by:
Individually evaluated for impairment
$2,121 $0 $253 $0 $2,374 $3,109 $8 $3,117 $0 $5,491 
Collectively evaluated for impairment
681,846 69,828 219,298 48,358 1,019,330 534,471 42,378 576,849 0 1,596,179 
$683,967 $69,828 $219,551 $48,358 $1,021,704 $537,580 $42,386 $579,966 $0 $1,601,670 
ALL allocated by:
Individually evaluated for impairment
$0 $0 $0 $0 $0 $37 $0 $37 $0 $37 
Collectively evaluated for impairment
6,847 1,008 2,120 94 10,069 3,697 209 3,906 448 14,423 
$6,847 $1008 $2,120 $94 $10,069 $3,734 $209 $3,943 $448 $14,460 
December 31, 2018
Loans allocated by:
Individually evaluated for impairment
$2,320 $0 $286 $0 $2,606 $3,691 $0 $3,691 $0 $6,297 
Collectively evaluated for impairment
559,424 49,436 160,678 50,982 820,520 387,429 33,411 420,840 0 1,241,360 
$561,744 $49,436 $160,964 $50,982 $823,126 $391,120 $33,411 $424,531 $0 $1,247,657 
ALL allocated by:
Individually evaluated for impairment
$0 $0 $0 $0 $0 $38 $0 $38 $0 $38 
Collectively evaluated for impairment
6,876 817 1,656 98 9,447 3,715 244 3,959 570 13,976 
$6,876 $817 $1,656 $98 $9,447 $3,753 $244 $3,997 $570 $14,014 
Schedule of Activity for the Accretable Yield of Purchased Impaired Loans
The following table provides activity for the accretable yield of purchased credit impaired loans for the three and six months ended June 30, 2019.
Three Months EndedSix Months Ended
(Dollars in thousands)June 30, 2019June 30, 2019
Accretable yield, beginning of period$1,894 $2,065 
New loans purchased3,497 3,497 
Accretion of income(1,221)(1,392)
Reclassifications from nonaccretable difference due to improvement in expected cash flows617 617 
Other changes, net201 201 
Accretable yield, end of period$4,988 $4,988