Eagle Bancorp (EGBN) 10-Q 9 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 31, 2018
Document And Entity Information
Entity Registrant Name	EAGLE BANCORP INC
Entity Central Index Key	1,050,441
Document Type	10-Q
Trading Symbol	EGBN
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity's Reporting Status Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		34,348,624
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,018

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 4,459	$ 7,445
Federal funds sold	17,284	15,767
Interest bearing deposits with banks and other short-term investments	162,734	167,261
Investment securities available-for-sale, at fair value	722,674	589,268
Federal Reserve and Federal Home Loan Bank stock	37,257	36,324
Loans held for sale	18,728	25,096
Loans	6,844,672	6,411,528
Less allowance for credit losses	(68,189)	(64,758)
Loans, net	6,776,483	6,346,770
Premises and equipment, net	17,457	20,991
Deferred income taxes	35,196	28,770
Bank owned life insurance	73,007	60,947
Intangible assets, net	106,481	107,212
Other real estate owned	1,394	1,394
Other assets	84,701	71,784
Total Assets	8,057,855	7,479,029
Deposits:
Noninterest bearing demand	2,057,886	1,982,912
Interest bearing transaction	459,455	420,417
Savings and money market	2,573,258	2,621,146
Time, $100,000 or more	758,152	515,682
Other time	523,554	313,827
Total deposits	6,372,305	5,853,984
Customer repurchase agreements	36,446	76,561
Other short-term borrowings	325,000	325,000
Long-term borrowings	217,198	216,905
Other liabilities	45,255	56,141
Total Liabilities	6,996,204	6,528,591
Shareholders' Equity
Common stock, par value $.01 per share; shares authorized 100,000,000, shares issued and outstanding 34,308,473 and 34,185,163, respectively	341	340
Additional paid in capital	526,423	520,304
Retained earnings	544,177	431,544
Accumulated other comprehensive loss	(9,290)	(1,750)
Total Shareholders' Equity	1,061,651	950,438
Total Liabilities and Shareholders' Equity	$ 8,057,855	$ 7,479,029

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized	100,000,000	100,000,000
Common stock, issued	34,308,473	34,308,473
Common stock, outstanding	34,185,163	34,185,163

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Interest Income
Interest and fees on loans	$ 95,570	$ 78,176	$ 270,924	$ 226,543
Interest and dividends on investment securities	4,875	3,194	12,525	8,854
Interest on balances with other banks and short-term investments	1,897	991	4,152	2,084
Interest on federal funds sold	18	9	104	27
Total interest income	102,360	82,370	287,705	237,508
Interest Expense
Interest on deposits	16,719	7,233	39,896	19,466
Interest on customer repurchase agreements	54	58	166	136
Interest on short-term borrowings	1,317	164	3,425	441
Interest on long-term borrowings	2,979	2,979	8,937	8,937
Total interest expense	21,069	10,434	52,424	28,980
Net Interest Income	81,291	71,936	235,281	208,528
Provision for Credit Losses	2,441	1,921	6,060	4,884
Net Interest Income After Provision For Credit Losses	78,850	70,015	229,221	203,644
Noninterest Income
Service charges on deposits	1,814	1,626	5,188	4,641
Gain on sale of loans	1,434	2,173	4,632	6,740
Gain on sale of investment securities		11	68	542
Increase in the cash surrender value of bank owned life insurance	373	369	1,073	1,108
Other income	2,019	2,605	5,536	6,846
Total noninterest income	5,640	6,784	16,497	19,877
Noninterest Expense
Salaries and employee benefits	17,157	16,905	51,827	50,451
Premises and equipment expenses	3,889	3,846	11,691	11,613
Marketing and advertising	1,191	732	3,419	2,873
Data processing	2,423	2,019	7,144	6,057
Legal, accounting and professional fees	2,130	1,240	7,282	3,539
FDIC insurance	933	929	2,559	2,063
Other expenses	3,891	3,845	11,102	12,153
Total noninterest expense	31,614	29,516	95,024	88,749
Income Before Income Tax Expense	52,876	47,283	150,694	134,772
Income Tax Expense	13,928	17,409	38,735	50,109
Net Income	$ 38,948	$ 29,874	$ 111,959	$ 84,663
Earnings Per Common Share
Basic	$ 1.14	$ 0.87	$ 3.26	$ 2.48
Diluted	$ 1.13	$ 0.87	$ 3.25	$ 2.47

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net Income	$ 38,948	$ 29,874	$ 111,959	$ 84,663
Other comprehensive income, net of tax:
Unrealized (loss) gain on securities available for sale	(3,148)	15	(10,206)	1,243
Reclassification adjustment for net gains included in net income		(7)	(51)	(340)
Total unrealized (loss) gain on investment securities	(3,148)	8	(10,257)	903
Unrealized gain on derivatives	625	347	3,547	1,350
Reclassification adjustment for amounts included in net income	(158)	(183)	(156)	(821)
Total unrealized gain on derivatives	467	164	3,391	529
Other comprehensive (loss) income	(2,681)	172	(6,866)	1,432
Comprehensive Income	$ 36,267	$ 30,046	$ 105,093	$ 86,095

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Beginning balace at Dec. 31, 2016	$ 338	$ 513,531	$ 331,311	$ (2,381)	$ 842,799
Beginning balace (in shares) at Dec. 31, 2016	34,023,850
Net Income			84,663		84,663
Other comprehensive gain, net of tax				1,432	1,432
Stock-based compensation expense		4,198	1		4,199
Issuance of common stock related to options exercised, net of shares withheld for payroll taxes	$ 1	258			259
Issuance of common stock related to options exercised, net of shares withheld for payroll taxes (in shares)	60,925
Vesting of time based stock awards issued at date of grant, net of shares withheld for payroll taxes	$ 1	(2)			(1)
Vesting of time based stock awards issued at date of grant, net of shares withheld for payroll taxes (in shares)	(16,962)
Time based stock awards granted (in shares)	91,097
Issuance of common stock related to employee stock purchase plan		631			631
Issuance of common stock related to employee stock purchase plan (in shares)	11,510
Vesting of performance based stock awards, net of shares withheld for payroll taxes (in shares)	3,589
Ending balance at Sep. 30, 2017	$ 340	518,616	415,975	(949)	933,982
Ending balance (in shares) at Sep. 30, 2017	34,174,009
Beginning balace at Dec. 31, 2017	$ 340	520,304	431,544	(1,750)	$ 950,438
Beginning balace (in shares) at Dec. 31, 2017	34,185,163				34,185,163
Net Income			111,959		$ 111,959
Other comprehensive gain, net of tax				(6,866)	(6,866)
Stock-based compensation expense		5,174			5,174
Issuance of common stock related to options exercised, net of shares withheld for payroll taxes		338			338
Issuance of common stock related to options exercised, net of shares withheld for payroll taxes (in shares)	32,230
Vesting of time based stock awards issued at date of grant, net of shares withheld for payroll taxes	$ 1	(1)
Vesting of time based stock awards issued at date of grant, net of shares withheld for payroll taxes (in shares)	(13,681)
Time based stock awards granted (in shares)	94,344
Issuance of common stock related to employee stock purchase plan		608			608
Issuance of common stock related to employee stock purchase plan (in shares)	10,417
Reclassification of the income tax effects of the Tax Cuts and Jobs Act from AOCI (ASU 2018-02)			674	(674)
Ending balance at Sep. 30, 2018	$ 341	$ 526,423	$ 544,177	$ (9,290)	$ 1,061,651
Ending balance (in shares) at Sep. 30, 2018	34,308,473				34,185,163

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash Flows From Operating Activities:
Net Income	$ 111,959	$ 84,663
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	6,060	4,884
Depreciation and amortization	5,292	5,161
Gains on sale of loans	(4,632)	(6,740)
Securities premium amortization (discount accretion), net	3,297	2,799
Origination of loans held for sale	(325,109)	(481,917)
Proceeds from sale of loans held for sale	336,109	514,306
Net increase in cash surrender value of BOLI	(1,073)	(1,108)
(Increase) decrease in deferred income tax benefit	(6,426)	1,293
Net loss on sale of other real estate owned		301
Net gain on sale of investment securities	(68)	(542)
Stock-based compensation expense	5,174	4,199
Net tax benefits from stock compensation	108	460
Increase in other assets	(11,894)	(23,059)
(Decrease) increase in other liabilities	(10,886)	9,553
Net cash provided by operating activities	107,911	114,253
Cash Flows From Investing Activities:
Purchases of available for sale investment securities	(246,501)	(144,554)
Proceeds from maturities of available for sale securities	68,901	55,732
Proceeds from sale/call of available for sale securities	31,974	70,079
Purchases of Federal Reserve and Federal Home Loan Bank stock	(47,811)	(27,665)
Proceeds from redemption of Federal Reserve and Federal Home Loan Bank stock	46,878	18,285
Net increase in loans	(435,773)	(408,447)
Purchases of BOLI	(10,000)
Proceeds from sale of other real estate owned		2,144
Bank premises and equipment acquired	(727)	(2,459)
Net cash used in investing activities	(593,059)	(436,885)
Cash Flows From Financing Activities:
Increase in deposits	518,321	197,838
(Decrease) increase in customer repurchase agreements	(40,115)	4,693
Increase in short-term borrowings		200,000
Proceeds from exercise of equity compensation plans	338	257
Proceeds from employee stock purchase plan	608	631
Net cash provided by financing activities	479,152	403,419
Net (Decrease) Increase In Cash and Cash Equivalents	(5,996)	80,787
Cash and Cash Equivalents at Beginning of Period	190,473	368,163
Cash and Cash Equivalents at End of Period	184,477	448,950
Supplemental Cash Flows Information:
Interest paid	53,405	31,257
Income taxes paid	$ 39,900	52,800
Non-Cash Investing Activities
Transfers from loans to other real estate owned		$ 1,145

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1. Summary of Significant Accounting Policies Basis of Presentation The Consolidated Financial Statements include the accounts of Eagle Bancorp, Inc. and its subsidiaries (the “Company”), EagleBank (the “Bank”), Eagle Commercial Ventures, LLC (“ECV”), Eagle Insurance Services, LLC, and Bethesda Leasing, LLC, with all significant intercompany transactions eliminated. The Consolidated Financial Statements of the Company included herein are unaudited. The Consolidated Financial Statements reflect all adjustments, consisting of normal recurring accruals that in the opinion of management, are necessary to present fairly the results for the periods presented. The amounts as of and for the year ended December 31, 2017 were derived from audited Consolidated Financial Statements. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The Company applies the accounting policies contained in Note 1 to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. There have been no significant changes to the Company’s Accounting Policies as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The Company believes that the disclosures are adequate to make the information presented not misleading. Certain reclassifications have been made to amounts previously reported to conform to the current period presentation. These statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Operating results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results of operations to be expected for the remainder of the year, or for any other period. Nature of Operations The Company, through the Bank, conducts a full service community banking business, primarily in Northern Virginia, Suburban Maryland, and Washington, D.C. The primary financial services offered by the Bank include real estate, commercial and consumer lending, as well as traditional deposit and repurchase agreement products. The Bank is also active in the origination and sale of residential mortgage loans, the origination of small business loans, and the origination, securitization and sale of multifamily Federal Housing Administration (“FHA”) loans. The guaranteed portion of small business loans, guaranteed by the Small Business Administration (“SBA”), is typically sold to third party investors in a transaction apart from the loan’s origination. The Bank offers its products and services through twenty banking offices, five lending centers and various electronic capabilities, including remote deposit services and mobile banking services. Eagle Insurance Services, LLC, a subsidiary of the Bank, offers access to insurance products and services through a referral program with a third party insurance broker. Eagle Commercial Ventures, LLC, a direct subsidiary of the Company, has provided subordinated financing for the acquisition, development and construction of real estate projects; these transactions involve higher levels of risk, together with commensurate higher returns. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results may differ from those estimates and such differences could be material to the financial statements. New Authoritative Accounting Guidance Accounting Standards Adopted in 2018 ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, letters of credit, derivatives and investment securities, as well as revenue related to our mortgage servicing activities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Substantially all of the Company’s revenue is generated from contracts with customers. Descriptions of our revenue-generating activities that are within the scope of ASC 606, which are presented in our income statements as components of noninterest income are as follows: ● Service charges on deposit accounts - these represent general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. ● Other Fees – generally, the Company receives compensation when a customer that it refers opens an account with certain third-parties. This category includes credit card, investment advisory, and interchange fees. The timing and amount of revenue recognition is not materially impacted by the new standard. ● Sale of OREO – ASU 2014-09 prescribes derecognition requirements for the sale of OREO that are less prescriptive than existing derecognition requirements. Previously, the Company was required to assess 1) the adequacy of a buyer’s initial and continuing investments and 2) the seller’s continuing involvement with the property. ASU 2014-09 requires an entity to assess whether it is “probable” that it will collect the consideration to which it will be entitled in exchange for transferring the asset to the customer. The new requirements could result in earlier revenue recognition; however, such sales are infrequent and the impact of this change is not expected to be material to our financial statements. A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals based on fee schedules. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not have contract balances material to our financial statements. As of September 30, 2018 and December 31, 2017, the Company did not have any significant contract balances. In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition cost. ASU 2016-01, “ Financial Instruments—(Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-15 “Statement of Cash Flows (Topic 230)” ASU 2017-12, “Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities.” ASU 2018-02, “ Income Statement - Reporting Comprehensive Income (Topic 220)- Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Accounting Standards Pending Adoption ASU 2016-02, “Leases (Topic 842).” ASU 2016-13, “Measurement of Credit Losses on Financial Instruments (Topic 326).” ASU 2017-04, “ Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment.”

Cash and Due from Banks

Cash and Due from Banks	9 Months Ended
	Sep. 30, 2018
Cash and Cash Equivalents [Abstract]
Cash and Due from Banks	Note 2. Cash and Due from Banks Regulation D of the Federal Reserve Act requires that banks maintain noninterest reserve balances with the Federal Reserve Bank based principally on the type and amount of their deposits. During 2018, the Bank maintained balances at the Federal Reserve sufficient to meet reserve requirements, as well as significant excess reserves, on which interest is paid. Additionally, the Bank maintains interest bearing balances with the Federal Home Loan Bank of Atlanta and noninterest bearing balances with domestic correspondent banks as compensation for services they provide to the Bank.

Investment Securities Available

Investment Securities Available-for-Sale	9 Months Ended
	Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Investment Securities Available-for-Sale	Note 3. Investment Securities Available-for-Sale Amortized cost and estimated fair value of securities available-for-sale are summarized as follows: September 30, 2018 (dollars in thousands) Amortized Gross Gross Estimated U. S. agency securities $ 236,853 $ — $ 6,528 $ 230,325 Residential mortgage backed securities 448,335 140 12,126 436,349 Municipal bonds 48,203 391 858 47,736 Corporate bonds 8,004 61 19 8,046 Other equity investments 218 — — 218 $ 741,613 $ 592 $ 19,531 $ 722,674 December 31, 2017 (dollars in thousands) Amortized Gross Gross Estimated U. S. agency securities $ 198,115 $ 283 $ 2,414 $ 195,984 Residential mortgage backed securities 322,067 187 4,418 317,836 Municipal bonds 60,976 1,295 214 62,057 Corporate bonds 13,010 163 — 13,173 Other equity investments 218 — — 218 $ 594,386 $ 1,928 $ 7,046 $ 589,268 In addition, at September 30, 2018 and December 31, 2017 the Company held $37.3 million and $36.3 million, respectively, in equity securities in a combination of Federal Reserve Bank (“FRB”) and Federal Home Loan Bank (“FHLB”) stocks, which are required to be held for regulatory purposes and which are not marketable, and therefore are carried at cost. Gross unrealized losses and fair value by length of time that the individual available-for-sale securities have been in a continuous unrealized loss position are as follows: Less than 12 Months Total September 30, 2018 (dollars in thousands) Number of Estimated Unrealized Estimated Unrealized Estimated Unrealized U. S. agency securities 61 $ 111,702 $ 1,909 $ 115,678 $ 4,619 $ 227,380 $ 6,528 Residential mortgage backed securities 184 237,720 3,938 190,668 8,188 428,388 12,126 Municipal bonds 16 16,388 352 10,440 506 26,828 858 Corporate bonds 2 2,981 19 — — 2,981 19 263 $ 368,791 $ 6,218 $ 316,786 $ 13,313 $ 685,577 $ 19,531 Less than 12 Months Total December 31, 2017 (dollars in thousands) Number of Estimated Unrealized Estimated Unrealized Estimated Unrealized U. S. agency securities 38 $ 102,264 $ 1,073 $ 55,093 $ 1,341 $ 157,357 $ 2,414 Residential mortgage backed securities 137 152,350 1,306 147,953 3,112 300,303 4,418 Municipal bonds 8 17,446 214 — — 17,446 214 183 $ 272,060 $ 2,593 $ 203,046 $ 4,453 $ 475,106 $ 7,046 The unrealized losses that exist are generally the result of changes in market interest rates and interest spread relationships since original purchases. The weighted average duration of debt securities, which comprise 99.9% of total investment securities, is relatively short at 3.9 years. If quoted prices are not available, fair value is measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. The Company does not believe that the investment securities that were in an unrealized loss position as of September 30, 2018 represent an other-than-temporary impairment. The Company does not intend to sell the investments and it is more likely than not that the Company will not have to sell the securities before recovery of its amortized cost basis, which may be at maturity. The amortized cost and estimated fair value of investments available-for-sale at September 30, 2018 and December 31, 2017 by contractual maturity are shown in the table below. Expected maturities for residential mortgage backed securities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2018 December 31, 2017 (dollars in thousands) Amortized Estimated Amortized Estimated U. S. agency securities maturing: One year or less $ 119,017 $ 114,692 $ 109,893 $ 108,198 After one year through five years 104,464 102,953 74,106 73,916 Five years through ten years 13,372 12,680 14,116 13,870 Residential mortgage backed securities 448,335 436,349 322,067 317,836 Municipal bonds maturing: One year or less 9,882 9,969 5,068 5,171 After one year through five years 15,579 15,541 19,405 19,879 Five years through ten years 21,675 21,094 35,432 35,846 After ten years 1,067 1,132 1,071 1,161 Corporate bonds maturing: After one year through five years 6,504 6,546 11,510 11,673 After ten years 1,500 1,500 1,500 1,500 Other equity investments 218 218 218 218 $ 741,613 $ 722,674 $ 594,386 $ 589,268 For the nine months ended September 30, 2018, gross realized gains on sales of investments securities were $93 thousand and gross realized losses on sales of investment securities were $25 thousand. For the nine months ended September 30, 2017, gross realized gains on sales of investments securities were $795 thousand and gross realized losses on sales of investment securities were $254 thousand. Proceeds from sales and calls of investment securities for the nine months ended September 30, 2018 were $32.0 million compared to $70.1 million for the same period in 2017. The carrying value of securities pledged as collateral for certain government deposits, securities sold under agreements to repurchase, and certain lines of credit with correspondent banks at September 30, 2018 and December 31, 2017 was $486.9 million and $465.4 million, respectively, which is well in excess of required amounts in order to operationally provide significant reserve amounts for new business. As of September 30, 2018 and December 31, 2017, there were no holdings of securities of any one issuer, other than the U.S. Government and U.S. agency securities, which exceeded ten percent of shareholders’ equity.

Mortgage Banking Derivative

Mortgage Banking Derivative	9 Months Ended
	Sep. 30, 2018
Mortgage Banking Derivative
Mortgage Banking Derivative	Note 4. Mortgage Banking Derivative As part of its mortgage banking activities, the Bank enters into interest rate lock commitments, which are commitments to originate loans where the interest rate on the loan is determined prior to funding and the customers have locked into that interest rate. The Bank then locks in the loan and interest rate with an investor and commits to deliver the loan if settlement occurs (“best efforts”) or commits to deliver the locked loan in a binding (“mandatory”) delivery program with an investor. Certain loans under interest rate lock commitments are covered under forward sales contracts of mortgage backed securities (“MBS”). Forward sales contracts of MBS are recorded at fair value with changes in fair value recorded in noninterest income. Interest rate lock commitments and commitments to deliver loans to investors are considered derivatives. The market value of interest rate lock commitments and best efforts contracts are not readily ascertainable with precision because they are not actively traded in stand-alone markets. The Bank determines the fair value of interest rate lock commitments and delivery contracts by measuring the fair value of the underlying asset, which is impacted by current interest rates, taking into consideration the probability that the interest rate lock commitments will close or will be funded. Certain additional risks arise from these forward delivery contracts in that the counterparties to the contracts may not be able to meet the terms of the contracts. The Bank does not expect any counterparty to any MBS to fail to meet its obligation. Additional risks inherent in mandatory delivery programs include the risk that, if the Bank does not close the loans subject to interest rate risk lock commitments, it will still be obligated to deliver MBS to the counterparty under the forward sales agreement. Should this be required, the Bank could incur significant costs in acquiring replacement loans or MBS and such costs could have an adverse effect on mortgage banking operations. The fair value of the mortgage banking derivatives is recorded as a freestanding asset or liability with the change in value being recognized in current earnings during the period of change. At September 30, 2018 the Bank had mortgage banking derivative financial instruments with a notional value of $39.9 million related to its forward contracts as compared to $37.1 million at December 31, 2017. The fair value of these mortgage banking derivative instruments at September 30, 2018 was $80 thousand included in other assets and $28 thousand included in other liabilities as compared to $43 thousand included in other assets and $10 thousand included in other liabilities at December 31, 2017. Included in other noninterest income for the three and nine months ended September 30, 2018 was a net gain of $10 thousand and a net loss of $42 thousand, respectively, relating to mortgage banking derivative instruments as compared to a net gain of $71 thousand and a net gain of $335 thousand, respectively, as of September 30, 2017. The amount included in other noninterest income for the three and nine months ended September 30, 2018 pertaining to its mortgage banking hedging activities was a net realized gain of $56 thousand and no net realized gain, respectively, as compared to a net realized loss of $14 thousand and a net realized loss of $912 thousand, respectively, as of September 30, 2017.

Loans and Allowance for Credit

Loans and Allowance for Credit Losses	9 Months Ended
	Sep. 30, 2018
Receivables [Abstract]
Loans and Allowance for Credit Losses	Note 5. Loans and Allowance for Credit Losses The Bank makes loans to customers primarily in the Washington, D.C. metropolitan area and surrounding communities. A substantial portion of the Bank’s loan portfolio consists of loans to businesses secured by real estate and other business assets. Loans, net of unamortized net deferred fees, at September 30, 2018 and December 31, 2017 are summarized by type as follows: September 30, 2018 December 31, 2017 (dollars in thousands) Amount % Amount % Commercial $ 1,493,577 22 % $ 1,375,939 21 % Income producing - commercial real estate 3,189,910 46 % 3,047,094 48 % Owner occupied - commercial real estate 863,162 13 % 755,444 12 % Real estate mortgage - residential 104,864 2 % 104,357 2 % Construction - commercial and residential 1,047,591 15 % 973,141 15 % Construction - C&I (owner occupied) 56,572 1 % 58,691 1 % Home equity 86,525 1 % 93,264 1 % Other consumer 2,471 — 3,598 — Total loans 6,844,672 100 % 6,411,528 100 % Less: allowance for credit losses (68,189 ) (64,758 ) Net loans $ 6,776,483 $ 6,346,770 Unamortized net deferred fees amounted to $24.5 million and $23.9 million at September 30, 2018 and December 31, 2017, respectively. As of September 30, 2018 and December 31, 2017, the Bank serviced $207.3 million and $195.3 million, respectively, of multifamily FHA loans, SBA loans and other loan participations which are not reflected as loan balances on the Consolidated Balance Sheets. Loan Origination / Risk Management The Company’s goal is to mitigate risks in the event of unforeseen threats to the loan portfolio as a result of economic downturn or other negative influences. Plans for mitigating inherent risks in managing loan assets include: carefully enforcing loan policies and procedures, evaluating each borrower’s business plan during the underwriting process and throughout the loan term, identifying and monitoring primary and alternative sources for loan repayment, and obtaining collateral to mitigate economic loss in the event of liquidation. Specific loan reserves are established based upon credit and/or collateral risks on an individual loan basis. A risk rating system is employed to proactively estimate loss exposure and provide a measuring system for setting general and specific reserve allocations. The composition of the Company’s loan portfolio is heavily weighted toward commercial real estate, both owner occupied and income producing real estate. At September 30, 2018, owner occupied - commercial real estate and construction - C&I (owner occupied) represent approximately 14% of the loan portfolio. At September 30, 2018, non-owner occupied commercial real estate and real estate construction represented approximately 61% of the loan portfolio. The combined owner occupied and commercial real estate loans represent approximately 75% of the loan portfolio. Real estate also serves as collateral for loans made for other purposes, resulting in 84% of all loans being secured by real estate. These loans are underwritten to mitigate lending risks typical of this type of loan such as declines in real estate values, changes in borrower cash flow and general economic conditions. The Bank typically requires a maximum loan to value of 80% and minimum cash flow debt service coverage of 1.15 to 1.0. Personal guarantees may be required, but may be limited. In making real estate commercial mortgage loans, the Bank generally requires that interest rates adjust not less frequently than five years. The Company is also an active traditional commercial lender providing loans for a variety of purposes, including working capital, equipment and account receivable financing. This loan category represents approximately 22% of the loan portfolio at September 30, 2018 and was generally variable or adjustable rate. Commercial loans meet reasonable underwriting standards, including appropriate collateral and cash flow necessary to support debt service. Personal guarantees are generally required, but may be limited. SBA loans represent approximately 2% of the commercial loan category. In originating SBA loans, the Company assumes the risk of non-payment on the unguaranteed portion of the credit. The Company generally sells the guaranteed portion of the loan generating noninterest income from the gains on sale, as well as servicing income on the portion participated. SBA loans are subject to the same cash flow analyses as other commercial loans. SBA loans are subject to a maximum loan size established by the SBA as well as internal loan size guidelines. Approximately 1% of the loan portfolio at September 30, 2018 consists of home equity loans and lines of credit and other consumer loans. These credits, while making up a small portion of the loan portfolio, demand the same emphasis on underwriting and credit evaluation as other types of loans advanced by the Bank. Approximately 2% of the loan portfolio consists of residential mortgage loans. The repricing duration of these loans was 21 months. These credits represent first liens on residential property loans originated by the Bank. While the Bank’s general practice is to originate and sell (servicing released) loans made by its Residential Lending department, from time to time certain loan characteristics do not meet the requirements of third party investors and these loans are instead maintained in the Bank’s portfolio until they are resold to another investor at a later date or mature. Loans are secured primarily by duly recorded first deeds of trust or mortgages. In some cases, the Bank may accept a recorded junior trust position. In general, borrowers will have a proven ability to build, lease, manage and/or sell a commercial or residential project and demonstrate satisfactory financial condition. Additionally, an equity contribution toward the project is customarily required. Construction loans require that the financial condition and experience of the general contractor and major subcontractors be satisfactory to the Bank. Guaranteed, fixed price contracts are required whenever appropriate, along with payment and performance bonds or completion bonds for larger scale projects. Loans intended for residential land acquisition, lot development and construction are made on the premise that the land: 1) is or will be developed for building sites for residential structures, and; 2) will ultimately be utilized for construction or improvement of residential zoned real properties, including the creation of housing. Residential development and construction loans will finance projects such as single family subdivisions, planned unit developments, townhouses, and condominiums. Residential land acquisition, development and construction loans generally are underwritten with a maximum term of 36 months, including extensions approved at origination. Commercial land acquisition and construction loans are secured by real property where loan funds will be used to acquire land and to construct or improve appropriately zoned real property for the creation of income producing or owner user commercial properties. Borrowers are generally required to put equity into each project at levels determined by the appropriate Loan Committee. Commercial land acquisition and construction loans generally are underwritten with a maximum term of 24 months. Substantially all construction draw requests must be presented in writing on American Institute of Architects documents and certified either by the contractor, the borrower and/or the borrower’s architect. Each draw request shall also include the borrower’s soft cost breakdown certified by the borrower or their Chief Financial Officer. Prior to an advance, the Bank or its contractor inspects the project to determine that the work has been completed, to justify the draw requisition. Commercial permanent loans are generally secured by improved real property which is generating income in the normal course of operation. Debt service coverage, assuming stabilized occupancy, must be satisfactory to support a permanent loan. The debt service coverage ratio is ordinarily at least 1.15 to 1.0. As part of the underwriting process, debt service coverage ratios are stress tested assuming a 200 basis point increase in interest rates from their current levels. Commercial permanent loans generally are underwritten with a term not greater than 10 years or the remaining useful life of the property, whichever is lower. The preferred term is between 5 to 7 years, with amortization to a maximum of 25 years. The Company’s loan portfolio includes ADC real estate loans including both investment and owner occupied projects. ADC loans amounted to $1.46 billion at September 30, 2018. A portion of the ADC portfolio, both speculative and non-speculative, includes loan funded interest reserves at origination. ADC loans that provide for the use of interest reserves represent approximately 77% of the outstanding ADC loan portfolio at September 30, 2018. The decision to establish a loan-funded interest reserve is made upon origination of the ADC loan and is based upon a number of factors considered during underwriting of the credit including: (1) the feasibility of the project; (2) the experience of the sponsor; (3) the creditworthiness of the borrower and guarantors; (4) borrower equity contribution; and (5) the level of collateral protection. When appropriate, an interest reserve provides an effective means of addressing the cash flow characteristics of a properly underwritten ADC loan. The Company does not significantly utilize interest reserves in other loan products. The Company recognizes that one of the risks inherent in the use of interest reserves is the potential masking of underlying problems with the project and/or the borrower’s ability to repay the loan. In order to mitigate this inherent risk, the Company employs a series of reporting and monitoring mechanisms on all ADC loans, whether or not an interest reserve is provided, including: (1) construction and development timelines which are monitored on an ongoing basis which track the progress of a given project to the timeline projected at origination; (2) a construction loan administration department independent of the lending function; (3) third party independent construction loan inspection reports; (4) monthly interest reserve monitoring reports detailing the balance of the interest reserves approved at origination and the days of interest carry represented by the reserve balances as compared to the then current anticipated time to completion and/or sale of speculative projects; and (5) quarterly commercial real estate construction meetings among senior Company management, which includes monitoring of current and projected real estate market conditions. If a project has not performed as expected, it is not the customary practice of the Company to increase loan funded interest reserves. The following tables detail activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2018 and 2017. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. (dollars in thousands) Commercial Income Producing - Commercial Real Estate Owner Occupied - Commercial Real Estate Real Estate Mortgage Residential Construction - Commercial and Residential Home Equity Other Consumer Total Three Months Ended September 30, 2018 Allowance for credit losses: Balance at beginning of period $ 12,206 $ 27,988 $ 6,003 $ 757 $ 18,651 $ 673 $ 331 $ 66,609 Loans charged-off (1,174 ) — — — (643 ) — (15 ) (1,832 ) Recoveries of loans previously charged-off 60 — — 1 899 6 5 971 Net loans (charged-off) recoveries (1,114 ) — — 1 256 6 (10 ) (861 ) Provision for credit losses 4,557 (601 ) (72 ) (9 ) (1,368 ) (48 ) (18 ) 2,441 Ending balance $ 15,649 $ 27,387 $ 5,931 $ 749 $ 17,539 $ 631 $ 303 $ 68,189 Nine Months Ended September 30, 2018 Allowance for credit losses: Balance at beginning of period $ 13,102 $ 25,376 $ 5,934 $ 944 $ 18,492 $ 770 $ 140 $ 64,758 Loans charged-off (2,435 ) (121 ) (132 ) — (1,160 ) — (15 ) (3,863 ) Recoveries of loans previously charged-off 86 2 2 4 994 133 13 1,234 Net loans (charged-off) recoveries (2,349 ) (119 ) (130 ) 4 (166 ) 133 (2 ) (2,629 ) Provision for credit losses 4,896 2,130 127 (199 ) (787 ) (272 ) 165 6,060 Ending balance $ 15,649 $ 27,387 $ 5,931 $ 749 $ 17,539 $ 631 $ 303 $ 68,189 As of September 30, 2018 Allowance for credit losses: Individually evaluated for impairment $ 6,271 $ 3,043 $ 500 $ — $ — $ — $ 56 $ 9,870 Collectively evaluated for impairment 9,378 24,344 5,431 749 17,539 631 247 58,319 Ending balance $ 15,649 $ 27,387 $ 5,931 $ 749 $ 17,539 $ 631 $ 303 $ 68,189 Three Months Ended September 30, 2017 Allowance for credit losses: Balance at beginning of period $ 14,225 $ 23,308 $ 4,189 $ 1,081 $ 16,727 $ 1,216 $ 301 $ 61,047 Loans charged-off (522 ) — — — (39 ) — (32 ) (593 ) Recoveries of loans previously charged-off 407 30 — 2 146 1 6 592 Net loans (charged-off) recoveries (115 ) 30 — 2 107 1 (26 ) (1 ) Provision for credit losses (2,266 ) (963 ) 1,273 (126 ) 4,052 (120 ) 71 1,921 Ending balance $ 11,844 $ 22,375 $ 5,462 $ 957 $ 20,886 $ 1,097 $ 346 $ 62,967 Nine Months Ended September 30, 2017 Allowance for credit losses: Balance at beginning of period $ 14,700 $ 21,105 $ 4,010 $ 1,284 $ 16,487 $ 1,328 $ 160 $ 59,074 Loans charged-off (659 ) (1,470 ) — — (39 ) — (98 ) (2,266 ) Recoveries of loans previously charged-off 675 80 2 5 491 4 18 1,275 Net loans (charged-off) recoveries 16 (1,390 ) 2 5 452 4 (80 ) (991 ) Provision for credit losses (2,872 ) 2,660 1,450 (332 ) 3,947 (235 ) 266 4,884 Ending balance $ 11,844 $ 22,375 $ 5,462 $ 957 $ 20,886 $ 1,097 $ 346 $ 62,967 As of September 30, 2017 Allowance for credit losses: Individually evaluated for impairment $ 3,246 $ 1,378 $ 1,005 $ — $ 2,900 $ 90 $ 81 $ 8,700 Collectively evaluated for impairment 8,598 20,997 4,457 957 17,986 1,007 265 54,267 Ending balance $ 11,844 $ 22,375 $ 5,462 $ 957 $ 20,886 $ 1,097 $ 346 $ 62,967 The Company’s recorded investments in loans as of September 30, 2018 and December 31, 2017 related to each balance in the allowance for loan losses by portfolio segment and disaggregated on the basis of the Company’s impairment methodology was as follows: (dollars in thousands) Commercial Income Producing - Commercial Real Estate Owner Occupied - Commercial Real Estate Real Estate Mortgage Residential Construction - Commercial and Residential Home Equity Other Consumer Total September 30, 2018 Recorded investment in loans: Individually evaluated for impairment $ 27,370 $ 9,404 $ 5,312 $ 1,236 $ 3,030 $ 487 $ 92 $ 46,931 Collectively evaluated for impairment 1,466,207 3,180,506 857,850 103,628 1,101,133 86,038 2,379 6,797,741 Ending balance $ 1,493,577 $ 3,189,910 $ 863,162 $ 104,864 $ 1,104,163 $ 86,525 $ 2,471 $ 6,844,672 December 31, 2017 Recorded investment in loans: Individually evaluated for impairment $ 8,726 $ 10,192 $ 5,501 $ 478 $ 4,709 $ 494 $ 91 $ 30,191 Collectively evaluated for impairment 1,367,213 3,036,902 749,943 103,879 1,027,123 92,770 3,507 6,381,337 Ending balance $ 1,375,939 $ 3,047,094 $ 755,444 $ 104,357 $ 1,031,832 $ 93,264 $ 3,598 $ 6,411,528 At September 30, 2018, nonperforming loans acquired from Fidelity & Trust Financial Corporation (“Fidelity”) and Virginia Heritage Bank (“Virginia Heritage”) have a carrying value of $287 thousand and $394 thousand, and an unpaid principal balance of $337 thousand and $1.2 million, respectively, and were evaluated separately in accordance with ASC Topic 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality Credit Quality Indicators The Company uses several credit quality indicators to manage credit risk in an ongoing manner. The Company’s primary credit quality indicators are to use an internal credit risk rating system that categorizes loans into pass, watch, special mention, or classified categories. Credit risk ratings are applied individually to those classes of loans that have significant or unique credit characteristics that benefit from a case-by-case evaluation. These are typically loans to businesses or individuals in the classes which comprise the commercial portfolio segment. Groups of loans that are underwritten and structured using standardized criteria and characteristics, such as statistical models (e.g., credit scoring or payment performance), are typically risk rated and monitored collectively. These are typically loans to individuals in the classes which comprise the consumer portfolio segment. The following are the definitions of the Company’s credit quality indicators: Pass: Loans in all classes that comprise the commercial and consumer portfolio segments that are not adversely rated, are contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan agreement. Management believes that there is a low likelihood of loss related to those loans that are considered pass. Watch: Loan paying as agreed with generally acceptable asset quality; however the obligor’s performance has not met expectations. Balance sheet and/or income statement has shown deterioration to the point that the obligor could not sustain any further setbacks. Credit is expected to be strengthened through improved obligor performance and/or additional collateral within a reasonable period of time. Special Mention: Loans in the classes that comprise the commercial portfolio segment that have potential weaknesses that deserve management’s close attention. If not addressed, these potential weaknesses may result in deterioration of the repayment prospects for the loan. The special mention credit quality indicator is not used for classes of loans that comprise the consumer portfolio segment. Management believes that there is a moderate likelihood of some loss related to those loans that are considered special mention. Classified: Classified (a) Substandard Classified (b) Doubtful The Company's credit quality indicators are updated generally on a quarterly basis, but no less frequently than annually. The following table presents by class and by credit quality indicator, the recorded investment in the Company's loans and leases as of September 30, 2018 and December 31, 2017. (dollars in thousands) Pass Watch and Special Mention Substandard Doubtful Total Loans September 30, 2018 Commercial $ 1,444,780 $ 21,427 $ 27,370 $ — $ 1,493,577 Income producing - commercial real estate 3,156,777 23,729 9,404 — 3,189,910 Owner occupied - commercial real estate 821,647 36,203 5,312 — 863,162 Real estate mortgage – residential 102,979 649 1,236 — 104,864 Construction - commercial and residential 1,101,133 — 3,030 — 1,104,163 Home equity 85,352 686 487 — 86,525 Other consumer 2,379 — 92 — 2,471 Total $ 6,715,047 $ 82,694 $ 46,931 $ — $ 6,844,672 December 31, 2017 Commercial $ 1,333,050 $ 34,163 $ 8,726 $ — $ 1,375,939 Income producing - commercial real estate 3,033,046 3,856 10,192 — 3,047,094 Owner occupied - commercial real estate 696,754 53,189 5,501 — 755,444 Real estate mortgage – residential 103,220 659 478 — 104,357 Construction - commercial and residential 1,027,123 — 4,709 — 1,031,832 Home equity 92,084 686 494 — 93,264 Other consumer 3,505 2 91 — 3,598 Total $ 6,288,782 $ 92,555 $ 30,191 $ — $ 6,411,528 Nonaccrual and Past Due Loans Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on nonaccrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The following table presents, by class of loan, information related to nonaccrual loans as of September 30, 2018 and December 31, 2017. (dollars in thousands) September 30, 2018 December 31, 2017 Commercial $ 7,529 $ 3,493 Income producing - commercial real estate 48 832 Owner occupied - commercial real estate 2,370 5,501 Real estate mortgage - residential 1,522 775 Construction - commercial and residential 3,030 2,052 Home equity 487 494 Other consumer 91 91 Total nonaccrual loans (1)(2) $ 15,077 $ 13,238 (1) Excludes troubled debt restructurings (“TDRs”) that were performing under their restructured terms totaling $17.5 million at September 30, 2018 and $12.3 million at December 31, 2017. (2) Gross interest income of $707 thousand and $802 thousand would have been recorded for the nine months ended September 30, 2018 and 2017, respectively, if nonaccrual loans shown above had been current and in accordance with their original terms, while the interest actually recorded on such loans was $193 thousand and $56 thousand for the nine months ended September 30, 2018 and 2017, respectively. See Note 1 to the Consolidated Financial Statements for a description of the Company’s policy for placing loans on nonaccrual status. The following table presents, by class of loan, an aging analysis and the recorded investments in loans past due as of September 30, 2018 and December 31, 2017. Loans Loans Loans Total Recorded 30-59 Days 60-89 Days 90 Days or Total Past Current Investment in (dollars in thousands) Past Due Past Due More Past Due Due Loans Loans Loans September 30, 2018 Commercial $ 4,297 $ 1,247 $ 7,529 $ 13,073 $ 1,480,504 $ 1,493,577 Income producing - commercial real estate 763 398 48 1,209 3,188,701 3,189,910 Owner occupied - commercial real estate 4,500 4,806 2,370 11,676 851,486 863,162 Real estate mortgage – residential — — 1,522 1,522 103,342 104,864 Construction - commercial and residential 21,947 1,849 3,030 26,826 1,077,337 1,104,163 Home equity 326 — 487 813 85,712 86,525 Other consumer 4 — 91 95 2,376 2,471 Total $ 31,837 $ 8,300 $ 15,077 $ 55,214 $ 6,789,458 $ 6,844,672 December 31, 2017 Commercial $ 2,705 $ 748 $ 3,493 $ 6,946 $ 1,368,993 $ 1,375,939 Income producing - commercial real estate 4,398 6,930 832 12,160 3,034,934 3,047,094 Owner occupied - commercial real estate 522 3,906 5,501 9,929 745,515 755,444 Real estate mortgage – residential 6,993 1,244 775 9,012 95,345 104,357 Construction - commercial and residential — 5,268 2,052 7,320 1,024,512 1,031,832 Home equity 307 — 494 801 92,463 93,264 Other consumer 45 6 91 142 3,456 3,598 Total $ 14,970 $ 18,102 $ 13,238 $ 46,310 $ 6,365,218 $ 6,411,528 Impaired Loans Loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Impairment is evaluated in total for smaller-balance loans of a similar nature and on an individual loan basis for other loans. If a loan is impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. The following table presents, by class of loan, information related to impaired loans for the periods ended September 30, 2018 and December 31, 2017. Unpaid Recorded Recorded Contractual Investment Investment Total Average Recorded Investment Interest Income Recognized Principal With No With Recorded Related Quarter Year Quarter Year (dollars in thousands) Balance Allowance Allowance Investment Allowance To Date To Date To Date To Date September 30, 2018 Commercial $ 12,943 $ — $ 12,471 $ 12,471 $ 6,271 $ 10,234 $ 8,431 $ 277 $ 316 Income producing - commercial real estate 9,260 — 9,260 9,260 3,043 9,292 9,277 120 361 Owner occupied - commercial real estate 5,761 449 5,312 5,761 500 5,940 6,104 125 149 Real estate mortgage – residential 1,522 1,522 — 1,522 — 1,749 1,747 — 2 Construction - commercial and residential 3,030 3,030 — 3,030 — 1,515 1,694 68 68 Home equity 487 487 — 487 — 491 492 — — Other consumer 92 — 92 92 56 92 91 — — Total $ 33,095 $ 5,488 $ 27,135 $ 32,623 $ 9,870 $ 29,313 $ 27,836 $ 590 $ 896 December 31, 2017 Commercial $ 5,644 $ 1,777 $ 3,748 $ 5,525 $ 3,259 $ 5,764 $ 5,765 $ 48 $ 145 Income producing - commercial real estate 10,044 781 9,263 10,044 2,380 10,068 10,127 120 493 Owner occupied - commercial real estate 6,596 1,095 5,501 6,596 1,382 6,743 5,210 27 73 Real estate mortgage – residential 775 775 — 775 — 538 423 17 17 Construction - commercial and residential 2,052 1,534 518 2,052 500 3,491 3,731 (14 ) — Home equity 494 494 — 494 — 544 346 — 2 Other consumer 91 — 91 91 80 92 93 — — Total $ 25,696 $ 6,456 $ 19,121 $ 25,577 $ 7,601 $ 27,240 $ 25,695 $ 198 $ 730 Modifications A modification of a loan constitutes a TDR when a borrower is experiencing financial difficulty and the modification constitutes a concession. The Company offers various types of concessions when modifying a loan. Commercial and industrial loans modified in a TDR often involve temporary interest-only payments, term extensions, and converting revolving credit lines to term loans. Additional collateral, a co-borrower, or a guarantor is often requested. Commercial mortgage and construction loans modified in a TDR often involve reducing the interest rate for the remaining term of the loan, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, or substituting or adding a new borrower or guarantor. Construction loans modified in a TDR may also involve extending the interest-only payment period. As of September 30, 2018, all performing TDRs were categorized as interest-only modifications. Loans modified in a TDR for the Company may have the financial effect of increasing the specific allowance associated with the loan. An allowance for impaired consumer and commercial loans that have been modified in a TDR is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent. Management exercises significant judgment in developing these estimates. The following table presents by class, the recorded investment of loans modified in TDRs held by the Company for the periods ended September 30, 2018 and December 31, 2017. For the Nine Months Ended September 30, 2018 Income Producing - Owner Occupied - Construction - (dollars in thousands) Number of Contracts Commercial Commercial Real Estate Commercial Real Estate Commercial Real Estate Total Troubled debt restructurings Restructured accruing 10 $ 4,942 $ 9,212 $ 3,391 $ — $ 17,545 Restructured nonaccruing 4 723 — — — 723 Total 14 $ 5,665 $ 9,212 $ 3,391 $ — $ 18,268 Specific allowance $ 2,000 $ 3,500 $ — $ — $ 5,500 Restructured and subsequently defaulted $ — $ 937 $ — $ — $ 937 For the Year Ended December 31, 2017 Income Producing - Owner Occupied - Construction - (dollars in thousands) Number of Contracts Commercial Commercial Real Estate Commercial Real Estate Commercial Real Estate Total Troubled debt restructings Restructured accruing 9 $ 2,032 $ 9,212 $ 1,095 $ — $ 12,339 Restructured nonaccruing 5 867 121 — — 988 Total 14 $ 2,899 $ 9,333 $ 1,095 $ — $ 13,327 Specific allowance $ 595 $ 2,350 $ — $ — $ 2,945 Restructured and subsequently defaulted $ 237 $ — $ — $ — $ 237 The Company had fourteen TDR’s at September 30, 2018 totaling approximately $18.3 million. Ten of these loans totaling approximately $17.5 million are performing under their modified terms. There were two performing TDRs totaling $937 thousand that defaulted on their modified terms which were reclassified to nonperforming loans during the nine months ended September 30, 2018, as compared to the same period in 2017, which had one default on a $237 thousand restructured loan which was charged off. A default is considered to have occurred once the TDR is past due 90 days or more or it has been placed on nonaccrual. Commercial and consumer loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a TDR subsequently default, the Company evaluates the loan for possible further impairment. The allowance may be increased, adjustments may be made in the allocation of the allowance, or partial charge-offs may be taken to further write-down the carrying value of the loan. For the three months ended September 30, 20108, there was one loan totaling $2.4 million modified in a TDR, as compared to the three months ended September 30, 2017 which had two loans totaling $251 thousand modified in a TDR. For the nine months ended September 31, 2018, there were three loans totaling $6.4 million modified in a TDR, as compared to the nine months ended September 30, 2017 which had three loans totaling $5.1 million modified in a TDR.

Interest Rate Swap Derivatives

Interest Rate Swap Derivatives	9 Months Ended
	Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Interest Rate Swap Derivatives	Note 6. Interest Rate Swap Derivatives The Company uses interest rate swap agreements to assist in its interest rate risk management. The Company’s objective in using interest rate derivatives designated as cash flow hedges is to add stability to interest expense and to better manage its exposure to interest rate movements. To accomplish this objective, the Company entered into forward starting interest rate swaps in April 2015 as part of its interest rate risk management strategy intended to mitigate the potential risk of rising interest rates on the Bank’s cost of funds. The notional amounts of the interest rate swaps designated as cash flow hedges do not represent amounts exchanged by the counterparties, but rather, the notional amount is used to determine, along with other terms of the derivative, the amounts to be exchanged between the counterparties. The interest rate swaps are designated as cash flow hedges and involve the receipt of variable rate amounts from two counterparties in exchange for the Company making fixed payments beginning in April 2016. The Company’s intent is to hedge its exposure to the variability in potential future interest rate conditions on existing financial instruments. As of September 30, 2018, the Company had three forward starting designated cash flow hedge interest rate swap transactions outstanding that had an aggregate notional amount of $250 million associated with the Company’s variable rate deposits. The net unrealized gain before income tax on the swaps was $6.4 million at September 30, 2018 compared to a net unrealized gain before income tax of $2.3 million at December 31, 2017. The unrealized gain in value since year end 2017 is due to the increase in expected net cash inflows from the swap over its remaining term due to higher market interest rates. For derivatives designated as cash flow hedges, changes in the fair value of the derivative are initially reported in other comprehensive income (outside of earnings), net of tax, and subsequently reclassified to earnings when the hedged transaction affects earnings. The Company assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged transactions. Amounts reported in accumulated other comprehensive income related to designated cash flow hedge derivatives will be reclassified to interest income/expense as interest payments are made/received on the Company’s variable-rate assets/liabilities. During the three and nine months ended September 30, 2018, the Company reclassified $214 and $230 thousand, respectively, related to designated cash flow hedge derivatives from accumulated other comprehensive income to decrease interest expense. During the three and nine months ended September 30, 2017, the Company reclassified $307 and $1.3 million, respectively, related to designated cash flow hedge derivatives from accumulated other comprehensive income to increase interest expense. During the next twelve months, the Company estimates (based on existing interest rates) that $2.1 million will be reclassified as a decrease in interest expense. The Company is exposed to credit risk in the event of nonperformance by the interest rate swap counterparty. The Company minimizes this risk by entering into derivative contracts with only large, stable financial institutions, and the Company has not experienced, and does not expect, any losses from counterparty nonperformance on the interest rate swaps. The Company monitors counterparty risk in accordance with the provisions of ASC Topic 815, “Derivatives and Hedging.” The designated cash flow hedge interest rate swap agreements detail: 1) that collateral be posted when the market value exceeds certain threshold limits associated with the secured party’s exposure; 2) if the Company defaults on any of its indebtedness (including default where repayment of the indebtedness has not been accelerated by the lender), then the Company could also be declared in default on its derivative obligations; 3) if the Company fails to maintain its status as a well capitalized institution then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements. As of September 30, 2018, the aggregate fair value of all designated cash flow hedge derivative contracts with credit risk contingent features (i.e., those containing collateral posting or termination provisions based on our capital status) that were in a net asset position totaled $5.8 million (none of these contracts were in a net liability position as of September 30, 2018). The Company has minimum collateral posting thresholds with certain of its derivative counterparties. As of September 30, 2018, the Company was not required to post collateral with its derivative counterparties against its obligations under these agreements because these agreements were in a net asset position. If the Company had breached any provisions under the agreements at September 30, 2018, it could have been required to settle its obligations under the agreements at the termination value. During the third quarter of 2018, the Company entered into credit risk participation agreements (“RPAs”) with institutional counterparties, under which the Company assumes its pro-rata share of the credit exposure associated with a borrower’s performance related to interest rate derivative contracts. The fair value of RPAs is calculated by determining the total expected asset or liability exposure of the derivatives to the borrowers and applying the borrowers’ credit spread to that exposure. Total expected exposure incorporates both the current and potential future exposure of the derivatives, derived from using observable inputs, such as yield curves and volatilities. These derivatives are not designated as hedges, are not speculative, and have a notional value of $27.5 million as of September 30. 2018. The changes in fair value for these contracts are recognized directly in earnings. The table below identifies the balance sheet category and fair values of the Company’s designated cash flow hedge derivative instruments and non-designated hedges as of September 30, 2018 and December 31, 2017. September 30, 2018 December 31, 2017 Swap Notional Balance Sheet Notional Balance Sheet Number Amount Fair Value Category Amount Fair Value Category Derivatives designated as hedging instruments (dollars in thousands) Interest rate swap (1 ) $ 75,000 $ 1,240 Other Assets $ 75,000 $ 598 Other Assets Interest rate swap (2 ) 100,000 2,539 Other Assets 100,000 821 Other Assets Interest rate swap (3 ) 75,000 2,648 Other Assets 75,000 837 Other Assets Total $ 250,000 $ 6,427 $ 250,000 $ 2,256 Derivatives not designated as hedging instruments (dollars in thousands) Other Contracts (1 ) 27,500 29 Other Liabilities — — Other Liabilities Total $ 27,500 $ 29 $ — $ — The table below presents the pre-tax net gains (losses) of the Company’s designated cash flow hedges for the three and nine months ended September 30, 2018 and 2017. Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Amount of Reclassified from AOCI into Income Amount of Reclassified from AOCI into Income Swap Pre-tax gain Amount of Pre-tax (loss) Amount of Number Recognized in OCI Category Gain (Loss) Recognized in OCI Category (Loss) (dollars in thousands) Interest rate swap (1 ) $ 111 Interest Expense $ 90 $ 26 Interest Expense $ (72 ) Interest rate swap (2 ) 426 Interest Expense 73 (8 ) Interest Expense (122 ) Interest rate swap (3 ) 312 Interest Expense 51 (56 ) Interest Expense (113 ) Total $ 849 $ 214 $ (38 ) $ (307 ) Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Reclassified from AOCI into Income Reclassified from AOCI into Income Swap Number Amount of Pre-tax gain Recognized in OCI Category Amount of Gain (Loss) Amount of Pre-tax (loss) Recognized in OCI Category Amount of (Loss) (dollars in thousands) Interest rate swap (1 ) $ 791 Interest Expense $ 148 $ (26 ) Interest Expense $ (338 ) Interest rate swap (2 ) 1,769 Interest Expense 51 (35 ) Interest Expense (525 ) Interest rate swap (3 ) 1,841 Interest Expense 31 (400 ) Interest Expense (458 ) Total $ 4,401 $ 230 $ (461 ) $ (1,321 ) The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the three and nine months ended September 30, 2018 and 2017. Location and Amount of Gain or (Loss) Recognized in Income on Cash Flow Hedging Relationships Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 (dollars in thousands) Interest Income (Expense) Other Income (Expense) Interest Income (Expense) Other Income (Expense) Total amounts of income and expense line items presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 214 $ — $ (307 ) $ — The effects of cash flow hedging: Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ 214 $ — $ (307 ) $ — Location and Amount of Gain or (Loss) Recognized in Income on Cash Flow Hedging Relationships Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 (dollars in thousands) Interest Income (Expense) Other Income (Expense) Interest Income (Expense) Other Income (Expense) Total amounts of income and expense line items presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 230 $ — $ (1,321 ) $ — The effects of cash flow hedging: Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ 230 $ — $ (1,321 ) $ — Balance Sheet Offsetting As of September 30, 2018 Offsetting of Derivative Assets (dollars in thousands) Gross Amounts Not Offset in the Balance Sheet Gross Amounts of Recognized Assets Gross Amounts Offset in the Balance Sheet Net Amounts of Assets presented in the Balance Sheet Financial Instruments Cash Collateral Posted Net Amount Counterparty 1 $ 5,220 $ — $ 5,220 $ — $ — $ 5,220 Counterparty 2 1,270 — $ 1,270 — — $ 1,270 Counterparty 3 (29 ) — $ (29 ) — — $ (29 ) $ 6,461 $ — $ 6,461 $ — $ — $ 6,461 As of December 31, 2017 Offsetting of Derivative Assets (dollars in thousands) Gross Amounts Not Offset in the Balance Sheet Gross Amounts of Recognized Assets Gross Amounts Offset in the Balance Sheet Net Amounts of Assets presented in the Balance Sheet Financial Instruments Cash Collateral Posted Net Amount Counterparty 1 $ 1,619 $ — $ 1,619 $ — $ — $ 1,619 Counterparty 2 582 — 582 — — 582 $ 2,201 $ — $ 2,201 $ — $ — $ 2,201

Other Real Estate Owned

Other Real Estate Owned	9 Months Ended
	Sep. 30, 2018
Real Estate [Abstract]
Other Real Estate Owned	Note 7. Other Real Estate Owned The activity within Other Real Estate Owned (“OREO”) for the three and nine months ended September 30, 2018 and 2017 is presented in the table below. There were no residential real estate loans in the process of foreclosure as of September 30, 2018. For the three and nine months ended September 30, 2018, there were no sales of OREO property. For the three months ended September 30, 2017, proceeds on sale of OREO were $1.2 million from the sale of two OREO properties with a total carrying value of $1.1 million resulting in a net gain of $60 thousand. For the nine months ended September 30, 2017, proceeds on sale of OREO were $2.1 million from the sale of three OREO properties with a total carrying value of $2.5 million resulting in a net loss of $301 thousand. Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2018 2017 2018 2017 Balance at January 1, $ 1,394 $ 1,394 $ 1,394 $ 2,694 Real estate acquired from borrowers — 1,145 — 1,145 Properties sold — (1,145 ) — (2,445 ) Ending balance $ 1,394 $ 1,394 $ 1,394 $ 1,394

Long-Term Borrowings

Long-Term Borrowings	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Long-Term Borrowings	Note 8. Long-Term Borrowings The following table presents information related to the Company’s long-term borrowings as of September 30, 2018 and December 31, 2017. (dollars in thousands) September 30, 2018 December 31, 2017 Subordinated Notes, 5.75% $ 70,000 $ 70,000 Subordinated Notes, 5.0% 150,000 150,000 Less: unamortized debt issuance costs (2,802 ) (3,095 ) Long-term borrowings $ 217,198 $ 216,905 On August 5, 2014, the Company completed the sale of $70.0 million of its 5.75% subordinated notes, due September 1, 2024 (the “2024 Notes”). The 2024 Notes were offered to the public at par and qualify as Tier 2 capital for regulatory purposes to the fullest extent permitted under the Basel III Rule capital requirements. The net proceeds were approximately $68.8 million, which includes $1.2 million in deferred financing costs which are being amortized over the life of the 2024 Notes. On July 26, 2016, the Company completed the sale of $150.0 million of its 5.00% Fixed-to-Floating Rate Subordinated Notes, due August 1, 2026 (the “2026 Notes”). The 2026 Notes were offered to the public at par and qualify as Tier 2 capital for regulatory purposes to the fullest extent permitted under the Basel III Rule capital requirements. The net proceeds were approximately $147.35 million, which includes $2.6 million in deferred financing costs which are being amortized over the life of the 2026 Notes.

Net Income per Common Share

Net Income per Common Share	9 Months Ended
	Sep. 30, 2018
Earnings Per Common Share
Net Income per Common Share	Note 9. Net Income per Common Share The calculation of net income per common share for the three months ended September 30, 2018 and 2017 was as follows. Three Months Ended September 30, Nine Months Ended September 30, (dollars and shares in thousands, except per share data) 2018 2017 2018 2017 Basic: Net income $ 38,948 $ 29,874 $ 111,959 $ 84,663 Average common shares outstanding 34,309 34,174 34,292 34,124 Basic net income per common share $ 1.14 $ 0.87 $ 3.26 $ 2.48 Diluted: Net income $ 38,948 $ 29,874 $ 111,959 $ 84,663 Average common shares outstanding 34,309 34,174 34,292 34,124 Adjustment for common share equivalents 152 164 152 192 Average common shares outstanding-diluted 34,461 34,338 34,444 34,316 Diluted net income per common share $ 1.13 $ 0.87 $ 3.25 $ 2.47 Anti-dilutive shares 3 — — —

Other Comprehensive Income

Other Comprehensive Income	9 Months Ended
	Sep. 30, 2018
Other Comprehensive Income
Other Comprehensive Income	Note 10. Other Comprehensive Income The following table presents the components of other comprehensive income (loss) for the three and nine months ended September 30, 2018 and 2017. (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended September 30, 2018 Net unrealized loss on securities available-for-sale $ (4,253 ) $ 1,105 $ (3,148 ) Less: Reclassification adjustment for net gains included in net income — — — Total unrealized loss (4,253 ) 1,105 (3,148 ) Net unrealized gain on derivatives 846 221 625 Less: Reclassification adjustment for losses included in net income (211 ) (53 ) (158 ) Total unrealized gain 635 168 467 Other Comprehensive Loss $ (3,618 ) $ 1,273 $ (2,681 ) Three Months Ended September 30, 2017 Net unrealized gain on securities available-for-sale $ 25 $ 10 $ 15 Less: Reclassification adjustment for net gains included in net income (11 ) (4 ) (7 ) Total unrealized gain 14 6 8 Net unrealized loss on derivatives 557 210 347 Less: Reclassification adjustment for losses included in net income (289 ) (106 ) (183 ) Total unrealized loss 268 104 164 Other Comprehensive Income $ 282 $ 110 $ 172 Nine Months Ended September 30, 2018 Net unrealized gain on securities available-for-sale $ (13,079 ) $ 2,873 $ (10,206 ) Less: Reclassification adjustment for net gains included in net income (68 ) (17 ) (51 ) Total unrealized loss (13,147 ) 2,856 (10,257 ) Net unrealized gain on derivatives 4,380 833 3,547 Less: Reclassification adjustment for losses included in net income (209 ) (53 ) (156 ) Total unrealized gain 4,171 780 3,391 Other Comprehensive Loss $ (8,976 ) $ 3,636 $ (6,866 ) Nine Months Ended September 30, 2017 Net unrealized gain on securities available-for-sale $ 2,080 $ 837 $ 1,243 Less: Reclassification adjustment for net gains included in net income (542 ) (202 ) (340 ) Total unrealized gain 1,538 635 903 Net unrealized gain on derivatives 2,186 836 1,350 Less: Reclassification adjustment for losses included in net income (1,308 ) (487 ) (821 ) Total unrealized gain 878 349 529 Other Comprehensive Income $ 2,416 $ 984 $ 1,432 The following table presents the changes in each component of accumulated other comprehensive loss, net of tax, for the three and nine months ended September 30, 2018 and 2017. (dollars in thousands) Securities Available For Sale Derivatives Accumulated Other Three Months Ended September 30, 2018 Balance at Beginning of Period $ (10,914 ) $ 4,305 $ (6,609 ) Other comprehensive income (loss) before reclassifications (3,148 ) 625 (2,523 ) Amounts reclassified from accumulated other comprehensive income (loss) — (158 ) (158 ) Total other comprehensive income (loss) (3,148 ) 467 (2,681 ) Balance at End of Period $ (14,062 ) $ 4,772 $ (9,290 ) Three Months Ended September 30, 2017 Balance at Beginning of Period $ (1,060 ) $ (61 ) $ (1,121 ) Other comprehensive income before reclassifications 15 347 362 Amounts reclassified from accumulated other comprehensive income (7 ) (183 ) (190 ) Net other comprehensive income during period 8 164 172 Balance at End of Period $ (1,052 ) $ 103 $ (949 ) Nine Months Ended September 30, 2018 Balance at Beginning of Period $ (3,131 ) $ 1,381 $ (1,750 ) Other comprehensive income (loss) before reclassifications (10,206 ) 3,547 (6,659 ) Amounts reclassified from accumulated other comprehensive income (51 ) (156 ) (207 ) Total other comprehensive income (loss) (10,257 ) 3,391 (6,866 ) Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act from AOCI (674 ) — (674 ) Balance at End of Period $ (14,062 ) $ 4,772 $ (9,290 ) Nine Months Ended September 30, 2017 Balance at Beginning of Period $ (1,955 ) $ (426 ) $ (2,381 ) Other comprehensive income before reclassifications 1,243 1,350 2,593 Amounts reclassified from accumulated other comprehensive income (340 ) (821 ) (1,161 ) Net other comprehensive income during period 903 529 1,432 Balance at End of Period $ (1,052 ) $ 103 $ (949 ) The following table presents the amounts reclassified out of each component of accumulated other comprehensive (loss) income for the three and nine months ended September 30, 2018 and 2017. Details about Accumulated Other Amount Reclassified from Affected Line Item in Comprehensive Income Components Accumulated Other the Statement Where (dollars in thousands) Comprehensive (Loss) Income Net Income is Presented Three Months Ended September 30, 2018 2017 Realized gain on sale of investment securities $ — $ (11 ) Gain on sale of investment securities Interest expense derivative deposits (211 ) (289 ) Interest expense on deposits Income tax benefit (expense) 53 110 Tax expense Total Reclassifications for the Period $ (158 ) $ (190 ) Net Income Details about Accumulated Other Amount Reclassified from Affected Line Item in Comprehensive Income Components Accumulated Other the Statement Where (dollars in thousands) Comprehensive (Loss) Income Net Income is Presented Nine Months Ended September 30, 2018 2017 Realized gain on sale of investment securities $ (68 ) $ (542 ) Gain on sale of investment securities Interest expense derivative deposits (209 ) (1,308 ) Interest expense on deposits Income tax benefit (expense) 70 689 Tax expense Total Reclassifications for the Period $ (207 ) $ (1,161 ) Net Income

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 11. Fair Value Measurements The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. ASC Topic 820, “Fair Value Measurements and Disclosures,” Level 1 Quoted prices in active exchange markets for identical assets or liabilities; also includes certain U.S. Treasury and other U.S. Government and agency securities actively traded in over-the-counter markets. Level 2 Observable inputs other than Level 1 including quoted prices for similar assets or liabilities, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data; also includes derivative contracts whose value is determined using a pricing model with observable market inputs or can be derived principally from or corroborated by observable market data. This category generally includes certain U.S. Government and agency securities, corporate debt securities, derivative instruments, and residential mortgage loans held for sale. Level 3 Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation; also includes observable inputs for single dealer nonbinding quotes not corroborated by observable market data. This category generally includes certain private equity investments, retained interests from securitizations, and certain collateralized debt obligations. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017. (dollars in thousands) Quoted Prices Significant Other Significant Other Total September 30, 2018 Assets Investment securities available for sale: U. S. agency securities $ — $ 230,325 $ — $ 230,325 Residential mortgage backed securities — 436,349 — 436,349 Municipal bonds — 47,736 — 47,736 Corporate bonds — 6,546 1,500 8,046 Other equity investments — — 218 218 Loans held for sale — 18,728 — 18,728 Mortgage banking derivatives — — 80 80 Interest rate swap derivatives — 6,427 — 6,427 Total assets measured at fair value on a recurring basis as of September 30, 2018 $ — $ 746,111 $ 1,798 $ 747,909 Liabilities: Mortgage banking derivatives $ — $ — $ 28 $ 28 Total liabilities measured at fair value on a recurring basis as of September 30, 2018 $ — $ — $ 28 $ 28 December 31, 2017 Assets: Investment securities available for sale: U. S. agency securities $ — $ 195,984 $ — $ 195,984 Residential mortgage backed securities — 317,836 — 317,836 Municipal bonds — 62,057 — 62,057 Corporate bonds — 11,673 1,500 13,173 Other equity investments — — 218 218 Loans held for sale — 25,096 — 25,096 Mortgage banking derivatives — — 43 43 Interest rate swap derivatives — 2,256 — 2,256 Total assets measured at fair value on a recurring basis as of December 31, 2017 $ — $ 614,902 $ 1,761 $ 616,663 Liabilities: Mortgage banking derivatives $ — $ — $ 10 $ 10 Total liabilities measured at fair value on a recurring basis as of December 31, 2017 $ — $ — $ 10 $ 10 Investment Securities Available-for-Sale: Loans held for sale The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for loans held for sale measured at fair value as of September 30, 2018 and December 31, 2017. September 30, 2018 Aggregate Unpaid (dollars in thousands) Fair Value Principal Balance Difference Residential mortgage loans held for sale $ 18,728 $ 18,488 $ 240 FHA mortgage loans held for sale $ — $ — $ — December 31, 2017 Aggregate Unpaid (dollars in thousands) Fair Value Principal Balance Difference Residential mortgage loans held for sale $ 25,096 $ 24,674 $ 422 FHA mortgage loans held for sale $ — $ — $ — No residential mortgage loans held for sale were 90 or more days past due or on nonaccrual status as of September 30, 2018 or December 31, 2017. Interest rate swap derivatives: Credit Risk Participation Agreements Mortgage banking derivatives: The following is a reconciliation of activity for assets and liabilities measured at fair value based on Significant Other Unobservable Inputs (Level 3): Investment Mortgage Banking (dollars in thousands) Securities Derivatives Total Assets: Beginning balance at January 1, 2018 $ 1,718 $ 43 $ 1,761 Realized gain included in earnings - net mortgage banking derivatives — 37 37 Purchases of available-for-sale securities — — — Principal redemption — — — Ending balance at September 30, 2018 $ 1,718 $ 80 $ 1,798 Liabilities: Beginning balance at January 1, 2018 $ — $ 10 $ 10 Realized loss included in earnings - net mortgage banking derivatives — 18 18 Principal redemption — — — Ending balance at September 30, 2018 $ — $ 28 $ 28 Investment Mortgage Banking (dollars in thousands) Securities Derivatives Total Assets: Beginning balance at January 1, 2017 $ 1,718 $ 114 $ 1,832 Realized loss included in earnings - net mortgage banking derivatives — (71 ) (71 ) Purchases of available-for-sale securities — — — Principal redemption — — — Ending balance at December 31, 2017 $ 1,718 $ 43 $ 1,761 Liabilities: Beginning balance at January 1, 2017 $ — $ 55 $ 55 Realized loss included in earnings - net mortgage banking derivatives — (45 ) (45 ) Principal redemption — — — Ending balance at December 31, 2017 $ — $ 10 $ 10 The other equity securities classified as Level 3 consist of equity investments in the form of common stock of two local banking companies which are not publicly traded, and for which the carrying amount approximates fair value. Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis The Company measures certain assets at fair value on a nonrecurring basis and the following is a general description of the methods used to value such assets. Impaired loans “Receivables.” Other real estate owned (dollars in thousands) Quoted Prices Significant Other Significant Other Total September 30, 2018 Impaired loans: Commercial $ — $ — $ 6,200 $ 6,200 Income producing - commercial real estate — — 6,217 6,217 Owner occupied - commercial real estate — — 5,261 5,261 Real estate mortgage - residential — — 1,522 1,522 Construction - commercial and residential 3,030 3,030 Home equity — — 487 487 Other consumer — — 36 36 Other real estate owned — — 1,394 1,394 Total assets measured at fair value on a nonrecurring basis as of September 30, 2018 $ — $ — $ 24,147 $ 24,147 (dollars in thousands) Quoted Prices Significant Other Significant Other Total December 31, 2017 Impaired loans: Commercial $ — $ — $ 2,266 $ 2,266 Income producing - commercial real estate — — 7,664 7,664 Owner occupied - commercial real estate — — 5,214 5,214 Real estate mortgage - residential — — 775 775 Construction - commercial and residential — — 1,552 1,552 Home equity — — 494 494 Other consumer — — 11 11 Other real estate owned — — 1,394 1,394 Total assets measured at fair value on a nonrecurring basis as of December 31, 2017 $ — $ — $ 19,370 $ 19,370 Fair Value of Financial Instruments The Company discloses fair value information about financial instruments for which it is practicable to estimate the value, whether or not such financial instruments are recognized on the balance sheet. Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation, and is best evidenced by quoted market price, if one exists. Quoted market prices, if available, are shown as estimates of fair value. Because no quoted market prices exist for a portion of the Company’s financial instruments, the fair value of such instruments has been derived based on management’s assumptions with respect to future economic conditions, the amount and timing of future cash flows and estimated discount rates. Different assumptions could significantly affect these estimates. Accordingly, the net realizable value could be materially different from the estimates presented below. In addition, the estimates are only indicative of individual financial instrument values and should not be considered an indication of the fair value of the Company taken as a whole. The following methods and assumptions were used to estimate the fair value of each category of financial instrument for which it is practicable to estimate value: Cash due from banks and federal funds sold: Interest bearing deposits with other banks: Investment securities: Federal Reserve and Federal Home Loan Bank stock: Loans held for sale: Loans: Bank owned life insurance: Annuity investment: Mortgage banking derivatives: Credit Risk Participation Agreements Interest rate swap derivatives: Noninterest bearing deposits: Interest bearing deposits: Certificates of deposit: Customer repurchase agreements: Borrowings: Off-balance sheet items: The estimated fair values of the Company’s financial instruments at September 30, 2018 and December 31, 2017 are as follows: Fair Value Measurements (dollars in thousands) Carrying Value Fair Value Quoted (Level 1) Significant (Level 2) Significant (Level 3) September 30, 2018 Assets Cash and due from banks $ 4,459 $ 4,459 $ — $ 4,459 $ — Federal funds sold 17,284 17,284 — 17,284 — Interest bearing deposits with other banks 162,734 162,734 — 162,734 — Investment securities 722,674 722,674 — 720,956 1,718 Federal Reserve and Federal Home Loan Bank stock 37,257 37,257 — 37,257 — Loans held for sale 18,728 18,728 — 18,728 — Loans (1) 6,776,483 6,713,861 — — 6,713,861 Bank owned life insurance 73,007 73,007 — 73,007 — Annuity investment 12,375 12,375 — 12,375 — Mortgage banking derivatives 80 80 — — 80 Interst rate swap derivatives 6,427 6,427 — 6,427 — Liabilities Noninterest bearing deposits 2,057,886 2,057,886 — 2,057,886 — Interest bearing deposits 3,032,713 3,032,713 — 3,032,713 — Certificates of deposit 1,281,706 1,279,407 — 1,279,407 — Customer repurchase agreements 36,446 36,446 — 36,446 — Borrowings 542,198 533,304 — 533,304 — Mortgage banking derivatives 28 28 — — 28 December 31, 2017 Assets Cash and due from banks $ 7,445 $ 7,445 $ — $ 7,445 $ — Federal funds sold 15,767 15,767 — 15,767 — Interest bearing deposits with other banks 167,261 167,261 — 167,261 — Investment securities 589,268 589,268 — 587,550 1,718 Federal Reserve and Federal Home Loan Bank stock 36,324 36,324 — 36,324 — Loans held for sale 25,096 25,096 — 25,096 — Loans (2) 6,346,770 6,381,213 — — 6,381,213 Bank owned life insurance 60,947 60,947 — 60,947 — Annuity investment 11,632 11,632 — 11,632 — Mortgage banking derivatives 43 43 — — 43 Interst rate swap derivatives 2,256 2,256 — 2,256 — Liabilities Noninterest bearing deposits 1,982,912 1,982,912 — 1,982,912 — Interest bearing deposits 3,041,563 3,041,563 — 3,041,563 — Certificates of deposit 829,509 829,886 — 829,886 — Customer repurchase agreements 76,561 76,561 — 76,561 — Borrowings 541,905 533,162 — 533,162 — Mortgage banking derivatives 10 10 — — 10 (1) Carrying amount is net of unearned income and the allowance for credit losses. In accordance with the prospective adoption of ASU No. 2016-01, the fair value of loans was measured using an exit price notion. (2) Carrying amount is net of unearned income and the allowance for credit losses. The fair value of loans was measured using an entry price notion.

Supplemental Executive Retireme

Supplemental Executive Retirement Plan	9 Months Ended
	Sep. 30, 2018
Supplemental Executive Retirement Plan
Supplemental Executive Retirement Plan	Note 12. Supplemental Executive Retirement Plan The Bank has entered into Supplemental Executive Retirement and Death Benefit Agreements (the “SERP Agreements”) with certain of the Bank’s executive officers other than Mr. Paul, which upon the executive’s retirement, will provide for a stated monthly payment for such executive’s lifetime subject to certain death benefits described below. The retirement benefit is computed as a percentage of each executive’s projected average base salary over the five years preceding retirement, assuming retirement at age 67. The SERP Agreements provide that (a) the benefits vest ratably over six years of service to the Bank, with the executive receiving credit for years of service prior to entering into the SERP Agreement, (b) death, disability and change-in-control shall result in immediate vesting, and (c) the monthly amount will be reduced if retirement occurs earlier than age 67 for any reason other than death, disability or change-in-control. The SERP Agreements further provide for a death benefit in the event the retired executive dies prior to receiving 180 monthly installments, paid either in a lump sum payment or continued monthly installment payments, such that the executive’s beneficiary has received payment(s) sufficient to equate to a cumulative 180 monthly installments. The SERP Agreements are unfunded arrangements maintained primarily to provide supplemental retirement benefits and comply with Section 409A of the Internal Revenue Code. The Bank financed the retirement benefits by purchasing fixed annuity contracts with four insurance carriers in 2013 totaling $11.4 million that have been designed to provide a future source of funds for the lifetime retirement benefits of the SERP Agreements. The primary impetus for utilizing fixed annuities is a substantial savings in compensation expenses for the Bank as opposed to a traditional SERP Agreement. For the three months ended September 30, 2018 and 2017, the annuity contracts accrued $56 thousand and $54 thousand of income, respectively, which were included in other noninterest income on the Consolidated Statement of Operations. The cash surrender value of the annuity contracts was $12.4 million and $11.6 million at September 30, 2018 and December 31, 2017, respectively, and is included in other assets on the Consolidated Balance Sheet. For the three and nine months ended September 30, 2018, the Company recorded benefit expense accruals of $100 thousand and $586 thousand, respectively, for this post retirement benefit. For the three and nine months ended September 30, 2017, the Company recorded benefit expense accruals of $103 thousand and $308 thousand, respectively, for this post retirement benefit. Upon death of a named executive, the annuity contract related to such executive terminates. The Bank has purchased additional bank owned life insurance contracts, which would effectively finance payments (up to a 15 year certain amount) to the executives’ named beneficiaries.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Consolidated Financial Statements include the accounts of Eagle Bancorp, Inc. and its subsidiaries (the “Company”), EagleBank (the “Bank”), Eagle Commercial Ventures, LLC (“ECV”), Eagle Insurance Services, LLC, and Bethesda Leasing, LLC, with all significant intercompany transactions eliminated. The Consolidated Financial Statements of the Company included herein are unaudited. The Consolidated Financial Statements reflect all adjustments, consisting of normal recurring accruals that in the opinion of management, are necessary to present fairly the results for the periods presented. The amounts as of and for the year ended December 31, 2017 were derived from audited Consolidated Financial Statements. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The Company applies the accounting policies contained in Note 1 to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. There have been no significant changes to the Company’s Accounting Policies as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The Company believes that the disclosures are adequate to make the information presented not misleading. Certain reclassifications have been made to amounts previously reported to conform to the current period presentation. These statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Operating results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results of operations to be expected for the remainder of the year, or for any other period.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results may differ from those estimates and such differences could be material to the financial statements.
New Authoritative Accounting Guidance	New Authoritative Accounting Guidance Accounting Standards Adopted in 2018 ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, letters of credit, derivatives and investment securities, as well as revenue related to our mortgage servicing activities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Substantially all of the Company’s revenue is generated from contracts with customers. Descriptions of our revenue-generating activities that are within the scope of ASC 606, which are presented in our income statements as components of noninterest income are as follows: ● Service charges on deposit accounts - these represent general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. ● Other Fees – generally, the Company receives compensation when a customer that it refers opens an account with certain third-parties. This category includes credit card, investment advisory, and interchange fees. The timing and amount of revenue recognition is not materially impacted by the new standard. ● Sale of OREO – ASU 2014-09 prescribes derecognition requirements for the sale of OREO that are less prescriptive than existing derecognition requirements. Previously, the Company was required to assess 1) the adequacy of a buyer’s initial and continuing investments and 2) the seller’s continuing involvement with the property. ASU 2014-09 requires an entity to assess whether it is “probable” that it will collect the consideration to which it will be entitled in exchange for transferring the asset to the customer. The new requirements could result in earlier revenue recognition; however, such sales are infrequent and the impact of this change is not expected to be material to our financial statements. A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals based on fee schedules. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not have contract balances material to our financial statements. As of September 30, 2018 and December 31, 2017, the Company did not have any significant contract balances. In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition cost. ASU 2016-01, “ Financial Instruments—(Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-15 “Statement of Cash Flows (Topic 230)” ASU 2017-12, “Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities.” ASU 2018-02, “ Income Statement - Reporting Comprehensive Income (Topic 220)- Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Accounting Standards Pending Adoption ASU 2016-02, “Leases (Topic 842).” ASU 2016-13, “Measurement of Credit Losses on Financial Instruments (Topic 326).” ASU 2017-04, “ Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment.”

Investment Securities Availab_2

Investment Securities Available-for-Sale (Tables)	9 Months Ended
	Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Schedule of amortized cost and estimated fair value of securities available-for-sale	Amortized cost and estimated fair value of securities available-for-sale are summarized as follows: September 30, 2018 (dollars in thousands) Amortized Gross Gross Estimated U. S. agency securities $ 236,853 $ — $ 6,528 $ 230,325 Residential mortgage backed securities 448,335 140 12,126 436,349 Municipal bonds 48,203 391 858 47,736 Corporate bonds 8,004 61 19 8,046 Other equity investments 218 — — 218 $ 741,613 $ 592 $ 19,531 $ 722,674 December 31, 2017 (dollars in thousands) Amortized Gross Gross Estimated U. S. agency securities $ 198,115 $ 283 $ 2,414 $ 195,984 Residential mortgage backed securities 322,067 187 4,418 317,836 Municipal bonds 60,976 1,295 214 62,057 Corporate bonds 13,010 163 — 13,173 Other equity investments 218 — — 218 $ 594,386 $ 1,928 $ 7,046 $ 589,268
Schedule of gross unrealized losses and fair value by length of time that the individual available-for-sale securities have been in a continuous unrealized loss position	Gross unrealized losses and fair value by length of time that the individual available-for-sale securities have been in a continuous unrealized loss position are as follows: Less than 12 Months Total September 30, 2018 (dollars in thousands) Number of Estimated Unrealized Estimated Unrealized Estimated Unrealized U. S. agency securities 61 $ 111,702 $ 1,909 $ 115,678 $ 4,619 $ 227,380 $ 6,528 Residential mortgage backed securities 184 237,720 3,938 190,668 8,188 428,388 12,126 Municipal bonds 16 16,388 352 10,440 506 26,828 858 Corporate bonds 2 2,981 19 — — 2,981 19 263 $ 368,791 $ 6,218 $ 316,786 $ 13,313 $ 685,577 $ 19,531 Less than 12 Months Total December 31, 2017 (dollars in thousands) Number of Estimated Unrealized Estimated Unrealized Estimated Unrealized U. S. agency securities 38 $ 102,264 $ 1,073 $ 55,093 $ 1,341 $ 157,357 $ 2,414 Residential mortgage backed securities 137 152,350 1,306 147,953 3,112 300,303 4,418 Municipal bonds 8 17,446 214 — — 17,446 214 183 $ 272,060 $ 2,593 $ 203,046 $ 4,453 $ 475,106 $ 7,046
Schedule of available-for-sale securities by contractual maturity	The amortized cost and estimated fair value of investments available-for-sale at September 30, 2018 and December 31, 2017 by contractual maturity are shown in the table below. September 30, 2018 December 31, 2017 (dollars in thousands) Amortized Estimated Amortized Estimated U. S. agency securities maturing: One year or less $ 119,017 $ 114,692 $ 109,893 $ 108,198 After one year through five years 104,464 102,953 74,106 73,916 Five years through ten years 13,372 12,680 14,116 13,870 Residential mortgage backed securities 448,335 436,349 322,067 317,836 Municipal bonds maturing: One year or less 9,882 9,969 5,068 5,171 After one year through five years 15,579 15,541 19,405 19,879 Five years through ten years 21,675 21,094 35,432 35,846 After ten years 1,067 1,132 1,071 1,161 Corporate bonds maturing: After one year through five years 6,504 6,546 11,510 11,673 After ten years 1,500 1,500 1,500 1,500 Other equity investments 218 218 218 218 $ 741,613 $ 722,674 $ 594,386 $ 589,268

Loans and Allowance for Credi_2

Loans and Allowance for Credit Losses (Tables)	9 Months Ended
	Sep. 30, 2018
Receivables [Abstract]
Schedule of loans, net of unamortized net deferred fees	Loans, net of unamortized net deferred fees, at September 30, 2018 and December 31, 2017 are summarized by type as follows: September 30, 2018 December 31, 2017 (dollars in thousands) Amount % Amount % Commercial $ 1,493,577 22 % $ 1,375,939 21 % Income producing - commercial real estate 3,189,910 46 % 3,047,094 48 % Owner occupied - commercial real estate 863,162 13 % 755,444 12 % Real estate mortgage - residential 104,864 2 % 104,357 2 % Construction - commercial and residential 1,047,591 15 % 973,141 15 % Construction - C&I (owner occupied) 56,572 1 % 58,691 1 % Home equity 86,525 1 % 93,264 1 % Other consumer 2,471 — 3,598 — Total loans 6,844,672 100 % 6,411,528 100 % Less: allowance for credit losses (68,189 ) (64,758 ) Net loans $ 6,776,483 $ 6,346,770
Schedule of detail activity in the allowance for credit losses by portfolio segment	The following tables detail activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2018 and 2017. (dollars in thousands) Commercial Income Producing - Commercial Real Estate Owner Occupied - Commercial Real Estate Real Estate Mortgage Residential Construction - Commercial and Residential Home Equity Other Consumer Total Three Months Ended September 30, 2018 Allowance for credit losses: Balance at beginning of period $ 12,206 $ 27,988 $ 6,003 $ 757 $ 18,651 $ 673 $ 331 $ 66,609 Loans charged-off (1,174 ) — — — (643 ) — (15 ) (1,832 ) Recoveries of loans previously charged-off 60 — — 1 899 6 5 971 Net loans (charged-off) recoveries (1,114 ) — — 1 256 6 (10 ) (861 ) Provision for credit losses 4,557 (601 ) (72 ) (9 ) (1,368 ) (48 ) (18 ) 2,441 Ending balance $ 15,649 $ 27,387 $ 5,931 $ 749 $ 17,539 $ 631 $ 303 $ 68,189 Nine Months Ended September 30, 2018 Allowance for credit losses: Balance at beginning of period $ 13,102 $ 25,376 $ 5,934 $ 944 $ 18,492 $ 770 $ 140 $ 64,758 Loans charged-off (2,435 ) (121 ) (132 ) — (1,160 ) — (15 ) (3,863 ) Recoveries of loans previously charged-off 86 2 2 4 994 133 13 1,234 Net loans (charged-off) recoveries (2,349 ) (119 ) (130 ) 4 (166 ) 133 (2 ) (2,629 ) Provision for credit losses 4,896 2,130 127 (199 ) (787 ) (272 ) 165 6,060 Ending balance $ 15,649 $ 27,387 $ 5,931 $ 749 $ 17,539 $ 631 $ 303 $ 68,189 As of September 30, 2018 Allowance for credit losses: Individually evaluated for impairment $ 6,271 $ 3,043 $ 500 $ — $ — $ — $ 56 $ 9,870 Collectively evaluated for impairment 9,378 24,344 5,431 749 17,539 631 247 58,319 Ending balance $ 15,649 $ 27,387 $ 5,931 $ 749 $ 17,539 $ 631 $ 303 $ 68,189 Three Months Ended September 30, 2017 Allowance for credit losses: Balance at beginning of period $ 14,225 $ 23,308 $ 4,189 $ 1,081 $ 16,727 $ 1,216 $ 301 $ 61,047 Loans charged-off (522 ) — — — (39 ) — (32 ) (593 ) Recoveries of loans previously charged-off 407 30 — 2 146 1 6 592 Net loans (charged-off) recoveries (115 ) 30 — 2 107 1 (26 ) (1 ) Provision for credit losses (2,266 ) (963 ) 1,273 (126 ) 4,052 (120 ) 71 1,921 Ending balance $ 11,844 $ 22,375 $ 5,462 $ 957 $ 20,886 $ 1,097 $ 346 $ 62,967 Nine Months Ended September 30, 2017 Allowance for credit losses: Balance at beginning of period $ 14,700 $ 21,105 $ 4,010 $ 1,284 $ 16,487 $ 1,328 $ 160 $ 59,074 Loans charged-off (659 ) (1,470 ) — — (39 ) — (98 ) (2,266 ) Recoveries of loans previously charged-off 675 80 2 5 491 4 18 1,275 Net loans (charged-off) recoveries 16 (1,390 ) 2 5 452 4 (80 ) (991 ) Provision for credit losses (2,872 ) 2,660 1,450 (332 ) 3,947 (235 ) 266 4,884 Ending balance $ 11,844 $ 22,375 $ 5,462 $ 957 $ 20,886 $ 1,097 $ 346 $ 62,967 As of September 30, 2017 Allowance for credit losses: Individually evaluated for impairment $ 3,246 $ 1,378 $ 1,005 $ — $ 2,900 $ 90 $ 81 $ 8,700 Collectively evaluated for impairment 8,598 20,997 4,457 957 17,986 1,007 265 54,267 Ending balance $ 11,844 $ 22,375 $ 5,462 $ 957 $ 20,886 $ 1,097 $ 346 $ 62,967
Schedule of recorded investments in loans related to each balance in the allowance for loan losses by portfolio segment	The Company’s recorded investments in loans as of September 30, 2018 and December 31, 2017 related to each balance in the allowance for loan losses by portfolio segment and disaggregated on the basis of the Company’s impairment methodology was as follows: (dollars in thousands) Commercial Income Producing - Commercial Real Estate Owner Occupied - Commercial Real Estate Real Estate Mortgage Residential Construction - Commercial and Residential Home Equity Other Consumer Total September 30, 2018 Recorded investment in loans: Individually evaluated for impairment $ 27,370 $ 9,404 $ 5,312 $ 1,236 $ 3,030 $ 487 $ 92 $ 46,931 Collectively evaluated for impairment 1,466,207 3,180,506 857,850 103,628 1,101,133 86,038 2,379 6,797,741 Ending balance $ 1,493,577 $ 3,189,910 $ 863,162 $ 104,864 $ 1,104,163 $ 86,525 $ 2,471 $ 6,844,672 December 31, 2017 Recorded investment in loans: Individually evaluated for impairment $ 8,726 $ 10,192 $ 5,501 $ 478 $ 4,709 $ 494 $ 91 $ 30,191 Collectively evaluated for impairment 1,367,213 3,036,902 749,943 103,879 1,027,123 92,770 3,507 6,381,337 Ending balance $ 1,375,939 $ 3,047,094 $ 755,444 $ 104,357 $ 1,031,832 $ 93,264 $ 3,598 $ 6,411,528
Schedule of loans by class and credit quality indicators	The following table presents by class and by credit quality indicator, the recorded investment in the Company's loans and leases as of September 30, 2018 and December 31, 2017. (dollars in thousands) Pass Watch and Special Mention Substandard Doubtful Total Loans September 30, 2018 Commercial $ 1,444,780 $ 21,427 $ 27,370 $ — $ 1,493,577 Income producing - commercial real estate 3,156,777 23,729 9,404 — 3,189,910 Owner occupied - commercial real estate 821,647 36,203 5,312 — 863,162 Real estate mortgage – residential 102,979 649 1,236 — 104,864 Construction - commercial and residential 1,101,133 — 3,030 — 1,104,163 Home equity 85,352 686 487 — 86,525 Other consumer 2,379 — 92 — 2,471 Total $ 6,715,047 $ 82,694 $ 46,931 $ — $ 6,844,672 December 31, 2017 Commercial $ 1,333,050 $ 34,163 $ 8,726 $ — $ 1,375,939 Income producing - commercial real estate 3,033,046 3,856 10,192 — 3,047,094 Owner occupied - commercial real estate 696,754 53,189 5,501 — 755,444 Real estate mortgage – residential 103,220 659 478 — 104,357 Construction - commercial and residential 1,027,123 — 4,709 — 1,031,832 Home equity 92,084 686 494 — 93,264 Other consumer 3,505 2 91 — 3,598 Total $ 6,288,782 $ 92,555 $ 30,191 $ — $ 6,411,528
Schedule of information related to nonaccrual loans by class	The following table presents, by class of loan, information related to nonaccrual loans as of September 30, 2018 and December 31, 2017. (dollars in thousands) September 30, 2018 December 31, 2017 Commercial $ 7,529 $ 3,493 Income producing - commercial real estate 48 832 Owner occupied - commercial real estate 2,370 5,501 Real estate mortgage - residential 1,522 775 Construction - commercial and residential 3,030 2,052 Home equity 487 494 Other consumer 91 91 Total nonaccrual loans (1)(2) $ 15,077 $ 13,238 (1) Excludes troubled debt restructurings (“TDRs”) that were performing under their restructured terms totaling $17.5 million at September 30, 2018 and $12.3 million at December 31, 2017. (2) Gross interest income of $707 thousand and $802 thousand would have been recorded for the nine months ended September 30, 2018 and 2017, respectively, if nonaccrual loans shown above had been current and in accordance with their original terms, while the interest actually recorded on such loans was $193 thousand and $56 thousand for the nine months ended September 30, 2018 and 2017, respectively. See Note 1 to the Consolidated Financial Statements for a description of the Company’s policy for placing loans on nonaccrual status.
Schedule by class of loan, an aging analysis and the recorded investments in loans past due	The following table presents, by class of loan, an aging analysis and the recorded investments in loans past due as of September 30, 2018 and December 31, 2017. Loans Loans Loans Total Recorded 30-59 Days 60-89 Days 90 Days or Total Past Current Investment in (dollars in thousands) Past Due Past Due More Past Due Due Loans Loans Loans September 30, 2018 Commercial $ 4,297 $ 1,247 $ 7,529 $ 13,073 $ 1,480,504 $ 1,493,577 Income producing - commercial real estate 763 398 48 1,209 3,188,701 3,189,910 Owner occupied - commercial real estate 4,500 4,806 2,370 11,676 851,486 863,162 Real estate mortgage – residential — — 1,522 1,522 103,342 104,864 Construction - commercial and residential 21,947 1,849 3,030 26,826 1,077,337 1,104,163 Home equity 326 — 487 813 85,712 86,525 Other consumer 4 — 91 95 2,376 2,471 Total $ 31,837 $ 8,300 $ 15,077 $ 55,214 $ 6,789,458 $ 6,844,672 December 31, 2017 Commercial $ 2,705 $ 748 $ 3,493 $ 6,946 $ 1,368,993 $ 1,375,939 Income producing - commercial real estate 4,398 6,930 832 12,160 3,034,934 3,047,094 Owner occupied - commercial real estate 522 3,906 5,501 9,929 745,515 755,444 Real estate mortgage – residential 6,993 1,244 775 9,012 95,345 104,357 Construction - commercial and residential — 5,268 2,052 7,320 1,024,512 1,031,832 Home equity 307 — 494 801 92,463 93,264 Other consumer 45 6 91 142 3,456 3,598 Total $ 14,970 $ 18,102 $ 13,238 $ 46,310 $ 6,365,218 $ 6,411,528
Schedule of impaired loans, by class of loan	The following table presents, by class of loan, information related to impaired loans for the periods ended September 30, 2018 and December 31, 2017. Unpaid Recorded Recorded Contractual Investment Investment Total Average Recorded Investment Interest Income Recognized Principal With No With Recorded Related Quarter Year Quarter Year (dollars in thousands) Balance Allowance Allowance Investment Allowance To Date To Date To Date To Date September 30, 2018 Commercial $ 12,943 $ — $ 12,471 $ 12,471 $ 6,271 $ 10,234 $ 8,431 $ 277 $ 316 Income producing - commercial real estate 9,260 — 9,260 9,260 3,043 9,292 9,277 120 361 Owner occupied - commercial real estate 5,761 449 5,312 5,761 500 5,940 6,104 125 149 Real estate mortgage – residential 1,522 1,522 — 1,522 — 1,749 1,747 — 2 Construction - commercial and residential 3,030 3,030 — 3,030 — 1,515 1,694 68 68 Home equity 487 487 — 487 — 491 492 — — Other consumer 92 — 92 92 56 92 91 — — Total $ 33,095 $ 5,488 $ 27,135 $ 32,623 $ 9,870 $ 29,313 $ 27,836 $ 590 $ 896 December 31, 2017 Commercial $ 5,644 $ 1,777 $ 3,748 $ 5,525 $ 3,259 $ 5,764 $ 5,765 $ 48 $ 145 Income producing - commercial real estate 10,044 781 9,263 10,044 2,380 10,068 10,127 120 493 Owner occupied - commercial real estate 6,596 1,095 5,501 6,596 1,382 6,743 5,210 27 73 Real estate mortgage – residential 775 775 — 775 — 538 423 17 17 Construction - commercial and residential 2,052 1,534 518 2,052 500 3,491 3,731 (14 ) — Home equity 494 494 — 494 — 544 346 — 2 Other consumer 91 — 91 91 80 92 93 — — Total $ 25,696 $ 6,456 $ 19,121 $ 25,577 $ 7,601 $ 27,240 $ 25,695 $ 198 $ 730
Schedule of loans modified in troubled debt restructurings	The following table presents by class, the recorded investment of loans modified in TDRs held by the Company for the periods ended September 30, 2018 and December 31, 2017. For the Nine Months Ended September 30, 2018 Income Producing - Owner Occupied - Construction - (dollars in thousands) Number of Contracts Commercial Commercial Real Estate Commercial Real Estate Commercial Real Estate Total Troubled debt restructurings Restructured accruing 10 $ 4,942 $ 9,212 $ 3,391 $ — $ 17,545 Restructured nonaccruing 4 723 — — — 723 Total 14 $ 5,665 $ 9,212 $ 3,391 $ — $ 18,268 Specific allowance $ 2,000 $ 3,500 $ — $ — $ 5,500 Restructured and subsequently defaulted $ — $ 937 $ — $ — $ 937 For the Year Ended December 31, 2017 Income Producing - Owner Occupied - Construction - (dollars in thousands) Number of Contracts Commercial Commercial Real Estate Commercial Real Estate Commercial Real Estate Total Troubled debt restructings Restructured accruing 9 $ 2,032 $ 9,212 $ 1,095 $ — $ 12,339 Restructured nonaccruing 5 867 121 — — 988 Total 14 $ 2,899 $ 9,333 $ 1,095 $ — $ 13,327 Specific allowance $ 595 $ 2,350 $ — $ — $ 2,945 Restructured and subsequently defaulted $ 237 $ — $ — $ — $ 237

Interest Rate Swap Derivatives

Interest Rate Swap Derivatives (Tables)	9 Months Ended
	Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of balance sheet category and fair values of the derivative instruments	The table below identifies the balance sheet category and fair values of the Company’s designated cash flow hedge derivative instruments and non-designated hedges as of September 30, 2018 and December 31, 2017. September 30, 2018 December 31, 2017 Swap Notional Balance Sheet Notional Balance Sheet Number Amount Fair Value Category Amount Fair Value Category Derivatives designated as hedging instruments (dollars in thousands) Interest rate swap (1 ) $ 75,000 $ 1,240 Other Assets $ 75,000 $ 598 Other Assets Interest rate swap (2 ) 100,000 2,539 Other Assets 100,000 821 Other Assets Interest rate swap (3 ) 75,000 2,648 Other Assets 75,000 837 Other Assets Total $ 250,000 $ 6,427 $ 250,000 $ 2,256 Derivatives not designated as hedging instruments (dollars in thousands) Other Contracts (1 ) 27,500 29 Other Liabilities — — Other Liabilities Total $ 27,500 $ 29 $ — $ —
Schedule of pretax net gains (losses) of dsignated cash flow hedges	The table below presents the pre-tax net gains (losses) of the Company’s designated cash flow hedges for the three and nine months ended September 30, 2018 and 2017. Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Amount of Reclassified from AOCI into Income Amount of Reclassified from AOCI into Income Swap Pre-tax gain Amount of Pre-tax (loss) Amount of Number Recognized in OCI Category Gain (Loss) Recognized in OCI Category (Loss) (dollars in thousands) Interest rate swap (1 ) $ 111 Interest Expense $ 90 $ 26 Interest Expense $ (72 ) Interest rate swap (2 ) 426 Interest Expense 73 (8 ) Interest Expense (122 ) Interest rate swap (3 ) 312 Interest Expense 51 (56 ) Interest Expense (113 ) Total $ 849 $ 214 $ (38 ) $ (307 ) Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Reclassified from AOCI into Income Reclassified from AOCI into Income Swap Number Amount of Pre-tax gain Recognized in OCI Category Amount of Gain (Loss) Amount of Pre-tax (loss) Recognized in OCI Category Amount of (Loss) (dollars in thousands) Interest rate swap (1 ) $ 791 Interest Expense $ 148 $ (26 ) Interest Expense $ (338 ) Interest rate swap (2 ) 1,769 Interest Expense 51 (35 ) Interest Expense (525 ) Interest rate swap (3 ) 1,841 Interest Expense 31 (400 ) Interest Expense (458 ) Total $ 4,401 $ 230 $ (461 ) $ (1,321 )
Schedule of the effect of derivative financial instruments on the Consolidated Statements of Operations	The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the three and nine months ended September 30, 2018 and 2017. Location and Amount of Gain or (Loss) Recognized in Income on Cash Flow Hedging Relationships Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 (dollars in thousands) Interest Income (Expense) Other Income (Expense) Interest Income (Expense) Other Income (Expense) Total amounts of income and expense line items presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 214 $ — $ (307 ) $ — The effects of cash flow hedging: Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ 214 $ — $ (307 ) $ — Location and Amount of Gain or (Loss) Recognized in Income on Cash Flow Hedging Relationships Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 (dollars in thousands) Interest Income (Expense) Other Income (Expense) Interest Income (Expense) Other Income (Expense) Total amounts of income and expense line items presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 230 $ — $ (1,321 ) $ — The effects of cash flow hedging: Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ 230 $ — $ (1,321 ) $ —
Schedule of offsetting liabilities of derivatives	The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s cash flow hedge derivatives as of September 30, 2018 and December 31, 2017. As of September 30, 2018 Offsetting of Derivative Assets (dollars in thousands) Gross Amounts Not Offset in the Balance Sheet Gross Amounts of Recognized Assets Gross Amounts Offset in the Balance Sheet Net Amounts of Assets presented in the Balance Sheet Financial Instruments Cash Collateral Posted Net Amount Counterparty 1 $ 5,220 $ — $ 5,220 $ — $ — $ 5,220 Counterparty 2 1,270 — $ 1,270 — — $ 1,270 Counterparty 3 (29 ) — $ (29 ) — — $ (29 ) $ 6,461 $ — $ 6,461 $ — $ — $ 6,461 As of December 31, 2017 Offsetting of Derivative Assets (dollars in thousands) Gross Amounts Not Offset in the Balance Sheet Gross Amounts of Recognized Assets Gross Amounts Offset in the Balance Sheet Net Amounts of Assets presented in the Balance Sheet Financial Instruments Cash Collateral Posted Net Amount Counterparty 1 $ 1,619 $ — $ 1,619 $ — $ — $ 1,619 Counterparty 2 582 — 582 — — 582 $ 2,201 $ — $ 2,201 $ — $ — $ 2,201

Other Real Estate Owned (Tables

Other Real Estate Owned (Tables)	9 Months Ended
	Sep. 30, 2018
Real Estate [Abstract]
Schedule of activity of other real estate owned	The activity within Other Real Estate Owned (“OREO”) for the three and nine months ended September 30, 2018 and 2017 is presented in the table below. Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2018 2017 2018 2017 Balance at January 1, $ 1,394 $ 1,394 $ 1,394 $ 2,694 Real estate acquired from borrowers — 1,145 — 1,145 Properties sold — (1,145 ) — (2,445 ) Ending balance $ 1,394 $ 1,394 $ 1,394 $ 1,394

Long-Term Borrowings (Tables)

Long-Term Borrowings (Tables)	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Schedule of long-term borrowings	The following table presents information related to the Company’s long-term borrowings as of September 30, 2018 and December 31, 2017. (dollars in thousands) September 30, 2018 December 31, 2017 Subordinated Notes, 5.75% $ 70,000 $ 70,000 Subordinated Notes, 5.0% 150,000 150,000 Less: unamortized debt issuance costs (2,802 ) (3,095 ) Long-term borrowings $ 217,198 $ 216,905

Net Income per Common Share (Ta

Net Income per Common Share (Tables)	9 Months Ended
	Sep. 30, 2018
Earnings Per Common Share
Schedule of calculation of net income per common share	The calculation of net income per common share for the three months ended September 30, 2018 and 2017 was as follows. Three Months Ended September 30, Nine Months Ended September 30, (dollars and shares in thousands, except per share data) 2018 2017 2018 2017 Basic: Net income $ 38,948 $ 29,874 $ 111,959 $ 84,663 Average common shares outstanding 34,309 34,174 34,292 34,124 Basic net income per common share $ 1.14 $ 0.87 $ 3.26 $ 2.48 Diluted: Net income $ 38,948 $ 29,874 $ 111,959 $ 84,663 Average common shares outstanding 34,309 34,174 34,292 34,124 Adjustment for common share equivalents 152 164 152 192 Average common shares outstanding-diluted 34,461 34,338 34,444 34,316 Diluted net income per common share $ 1.13 $ 0.87 $ 3.25 $ 2.47 Anti-dilutive shares 3 — — —

Other Comprehensive Income (Tab

Other Comprehensive Income (Tables)	9 Months Ended
	Sep. 30, 2018
Other Comprehensive Income
Schedule of components of other comprehensive income (loss)	The following table presents the components of other comprehensive income (loss) for the three and nine months ended September 30, 2018 and 2017. (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended September 30, 2018 Net unrealized loss on securities available-for-sale $ (4,253 ) $ 1,105 $ (3,148 ) Less: Reclassification adjustment for net gains included in net income — — — Total unrealized loss (4,253 ) 1,105 (3,148 ) Net unrealized gain on derivatives 846 221 625 Less: Reclassification adjustment for losses included in net income (211 ) (53 ) (158 ) Total unrealized gain 635 168 467 Other Comprehensive Loss $ (3,618 ) $ 1,273 $ (2,681 ) Three Months Ended September 30, 2017 Net unrealized gain on securities available-for-sale $ 25 $ 10 $ 15 Less: Reclassification adjustment for net gains included in net income (11 ) (4 ) (7 ) Total unrealized gain 14 6 8 Net unrealized loss on derivatives 557 210 347 Less: Reclassification adjustment for losses included in net income (289 ) (106 ) (183 ) Total unrealized loss 268 104 164 Other Comprehensive Income $ 282 $ 110 $ 172 Nine Months Ended September 30, 2018 Net unrealized gain on securities available-for-sale $ (13,079 ) $ 2,873 $ (10,206 ) Less: Reclassification adjustment for net gains included in net income (68 ) (17 ) (51 ) Total unrealized loss (13,147 ) 2,856 (10,257 ) Net unrealized gain on derivatives 4,380 833 3,547 Less: Reclassification adjustment for losses included in net income (209 ) (53 ) (156 ) Total unrealized gain 4,171 780 3,391 Other Comprehensive Loss $ (8,976 ) $ 3,636 $ (6,866 ) Nine Months Ended September 30, 2017 Net unrealized gain on securities available-for-sale $ 2,080 $ 837 $ 1,243 Less: Reclassification adjustment for net gains included in net income (542 ) (202 ) (340 ) Total unrealized gain 1,538 635 903 Net unrealized gain on derivatives 2,186 836 1,350 Less: Reclassification adjustment for losses included in net income (1,308 ) (487 ) (821 ) Total unrealized gain 878 349 529 Other Comprehensive Income $ 2,416 $ 984 $ 1,432
Schedule of changes in each component of accumulated other comprehensive loss, net of tax	The following table presents the changes in each component of accumulated other comprehensive loss, net of tax, for the three and nine months ended September 30, 2018 and 2017. (dollars in thousands) Securities Available For Sale Derivatives Accumulated Other Three Months Ended September 30, 2018 Balance at Beginning of Period $ (10,914 ) $ 4,305 $ (6,609 ) Other comprehensive income (loss) before reclassifications (3,148 ) 625 (2,523 ) Amounts reclassified from accumulated other comprehensive income (loss) — (158 ) (158 ) Total other comprehensive income (loss) (3,148 ) 467 (2,681 ) Balance at End of Period $ (14,062 ) $ 4,772 $ (9,290 ) Three Months Ended September 30, 2017 Balance at Beginning of Period $ (1,060 ) $ (61 ) $ (1,121 ) Other comprehensive income before reclassifications 15 347 362 Amounts reclassified from accumulated other comprehensive income (7 ) (183 ) (190 ) Net other comprehensive income during period 8 164 172 Balance at End of Period $ (1,052 ) $ 103 $ (949 ) Nine Months Ended September 30, 2018 Balance at Beginning of Period $ (3,131 ) $ 1,381 $ (1,750 ) Other comprehensive income (loss) before reclassifications (10,206 ) 3,547 (6,659 ) Amounts reclassified from accumulated other comprehensive income (51 ) (156 ) (207 ) Total other comprehensive income (loss) (10,257 ) 3,391 (6,866 ) Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act from AOCI (674 ) — (674 ) Balance at End of Period $ (14,062 ) $ 4,772 $ (9,290 ) Nine Months Ended September 30, 2017 Balance at Beginning of Period $ (1,955 ) $ (426 ) $ (2,381 ) Other comprehensive income before reclassifications 1,243 1,350 2,593 Amounts reclassified from accumulated other comprehensive income (340 ) (821 ) (1,161 ) Net other comprehensive income during period 903 529 1,432 Balance at End of Period $ (1,052 ) $ 103 $ (949 )
Schedule of amounts reclassified out of accumulated other comprehensive (loss) income	The following table presents the amounts reclassified out of each component of accumulated other comprehensive (loss) income for the three and nine months ended September 30, 2018 and 2017. Details about Accumulated Other Amount Reclassified from Affected Line Item in Comprehensive Income Components Accumulated Other the Statement Where (dollars in thousands) Comprehensive (Loss) Income Net Income is Presented Three Months Ended September 30, 2018 2017 Realized gain on sale of investment securities $ — $ (11 ) Gain on sale of investment securities Interest expense derivative deposits (211 ) (289 ) Interest expense on deposits Income tax benefit (expense) 53 110 Tax expense Total Reclassifications for the Period $ (158 ) $ (190 ) Net Income Details about Accumulated Other Amount Reclassified from Affected Line Item in Comprehensive Income Components Accumulated Other the Statement Where (dollars in thousands) Comprehensive (Loss) Income Net Income is Presented Nine Months Ended September 30, 2018 2017 Realized gain on sale of investment securities $ (68 ) $ (542 ) Gain on sale of investment securities Interest expense derivative deposits (209 ) (1,308 ) Interest expense on deposits Income tax benefit (expense) 70 689 Tax expense Total Reclassifications for the Period $ (207 ) $ (1,161 ) Net Income

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Schedule of recorded amount of assets and liabilities measured at fair value on a recurring basis	The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017. (dollars in thousands) Quoted Prices Significant Other Significant Other Total September 30, 2018 Assets Investment securities available for sale: U. S. agency securities $ — $ 230,325 $ — $ 230,325 Residential mortgage backed securities — 436,349 — 436,349 Municipal bonds — 47,736 — 47,736 Corporate bonds — 6,546 1,500 8,046 Other equity investments — — 218 218 Loans held for sale — 18,728 — 18,728 Mortgage banking derivatives — — 80 80 Interest rate swap derivatives — 6,427 — 6,427 Total assets measured at fair value on a recurring basis as of September 30, 2018 $ — $ 746,111 $ 1,798 $ 747,909 Liabilities: Mortgage banking derivatives $ — $ — $ 28 $ 28 Total liabilities measured at fair value on a recurring basis as of September 30, 2018 $ — $ — $ 28 $ 28 December 31, 2017 Assets: Investment securities available for sale: U. S. agency securities $ — $ 195,984 $ — $ 195,984 Residential mortgage backed securities — 317,836 — 317,836 Municipal bonds — 62,057 — 62,057 Corporate bonds — 11,673 1,500 13,173 Other equity investments — — 218 218 Loans held for sale — 25,096 — 25,096 Mortgage banking derivatives — — 43 43 Interest rate swap derivatives — 2,256 — 2,256 Total assets measured at fair value on a recurring basis as of December 31, 2017 $ — $ 614,902 $ 1,761 $ 616,663 Liabilities: Mortgage banking derivatives $ — $ — $ 10 $ 10 Total liabilities measured at fair value on a recurring basis as of December 31, 2017 $ — $ — $ 10 $ 10
Schedule of aggregate fair value and the aggregate unpaid principal balance for loans held for sale measured at fair value	The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for loans held for sale measured at fair value as of September 30, 2018 and December 31, 2017. September 30, 2018 Aggregate Unpaid (dollars in thousands) Fair Value Principal Balance Difference Residential mortgage loans held for sale $ 18,728 $ 18,488 $ 240 FHA mortgage loans held for sale $ — $ — $ — December 31, 2017 Aggregate Unpaid (dollars in thousands) Fair Value Principal Balance Difference Residential mortgage loans held for sale $ 25,096 $ 24,674 $ 422 FHA mortgage loans held for sale $ — $ — $ —
Schedule of the reconciliation of activity for assets and liabilities measured at fair value based on Significant Other Unobservable Inputs (Level 3)	The following is a reconciliation of activity for assets and liabilities measured at fair value based on Significant Other Unobservable Inputs (Level 3): Investment Mortgage Banking (dollars in thousands) Securities Derivatives Total Assets: Beginning balance at January 1, 2018 $ 1,718 $ 43 $ 1,761 Realized gain included in earnings - net mortgage banking derivatives — 37 37 Purchases of available-for-sale securities — — — Principal redemption — — — Ending balance at September 30, 2018 $ 1,718 $ 80 $ 1,798 Liabilities: Beginning balance at January 1, 2018 $ — $ 10 $ 10 Realized loss included in earnings - net mortgage banking derivatives — 18 18 Principal redemption — — — Ending balance at September 30, 2018 $ — $ 28 $ 28 Investment Mortgage Banking (dollars in thousands) Securities Derivatives Total Assets: Beginning balance at January 1, 2017 $ 1,718 $ 114 $ 1,832 Realized loss included in earnings - net mortgage banking derivatives — (71 ) (71 ) Purchases of available-for-sale securities — — — Principal redemption — — — Ending balance at December 31, 2017 $ 1,718 $ 43 $ 1,761 Liabilities: Beginning balance at January 1, 2017 $ — $ 55 $ 55 Realized loss included in earnings - net mortgage banking derivatives — (45 ) (45 ) Principal redemption — — — Ending balance at December 31, 2017 $ — $ 10 $ 10
Schedule of assets measured at fair value on nonrecurring basis	Assets measured at fair value on a nonrecurring basis are included in the table below: (dollars in thousands) Quoted Prices Significant Other Significant Other Total September 30, 2018 Impaired loans: Commercial $ — $ — $ 6,200 $ 6,200 Income producing - commercial real estate — — 6,217 6,217 Owner occupied - commercial real estate — — 5,261 5,261 Real estate mortgage - residential — — 1,522 1,522 Construction - commercial and residential 3,030 3,030 Home equity — — 487 487 Other consumer — — 36 36 Other real estate owned — — 1,394 1,394 Total assets measured at fair value on a nonrecurring basis as of September 30, 2018 $ — $ — $ 24,147 $ 24,147 (dollars in thousands) Quoted Prices Significant Other Significant Other Total December 31, 2017 Impaired loans: Commercial $ — $ — $ 2,266 $ 2,266 Income producing - commercial real estate — — 7,664 7,664 Owner occupied - commercial real estate — — 5,214 5,214 Real estate mortgage - residential — — 775 775 Construction - commercial and residential — — 1,552 1,552 Home equity — — 494 494 Other consumer — — 11 11 Other real estate owned — — 1,394 1,394 Total assets measured at fair value on a nonrecurring basis as of December 31, 2017 $ — $ — $ 19,370 $ 19,370
Schedule of estimated fair values of financial instruments	The estimated fair values of the Company’s financial instruments at September 30, 2018 and December 31, 2017 are as follows: Fair Value Measurements (dollars in thousands) Carrying Value Fair Value Quoted (Level 1) Significant (Level 2) Significant (Level 3) September 30, 2018 Assets Cash and due from banks $ 4,459 $ 4,459 $ — $ 4,459 $ — Federal funds sold 17,284 17,284 — 17,284 — Interest bearing deposits with other banks 162,734 162,734 — 162,734 — Investment securities 722,674 722,674 — 720,956 1,718 Federal Reserve and Federal Home Loan Bank stock 37,257 37,257 — 37,257 — Loans held for sale 18,728 18,728 — 18,728 — Loans (1) 6,776,483 6,713,861 — — 6,713,861 Bank owned life insurance 73,007 73,007 — 73,007 — Annuity investment 12,375 12,375 — 12,375 — Mortgage banking derivatives 80 80 — — 80 Interst rate swap derivatives 6,427 6,427 — 6,427 — Liabilities Noninterest bearing deposits 2,057,886 2,057,886 — 2,057,886 — Interest bearing deposits 3,032,713 3,032,713 — 3,032,713 — Certificates of deposit 1,281,706 1,279,407 — 1,279,407 — Customer repurchase agreements 36,446 36,446 — 36,446 — Borrowings 542,198 533,304 — 533,304 — Mortgage banking derivatives 28 28 — — 28 December 31, 2017 Assets Cash and due from banks $ 7,445 $ 7,445 $ — $ 7,445 $ — Federal funds sold 15,767 15,767 — 15,767 — Interest bearing deposits with other banks 167,261 167,261 — 167,261 — Investment securities 589,268 589,268 — 587,550 1,718 Federal Reserve and Federal Home Loan Bank stock 36,324 36,324 — 36,324 — Loans held for sale 25,096 25,096 — 25,096 — Loans (2) 6,346,770 6,381,213 — — 6,381,213 Bank owned life insurance 60,947 60,947 — 60,947 — Annuity investment 11,632 11,632 — 11,632 — Mortgage banking derivatives 43 43 — — 43 Interst rate swap derivatives 2,256 2,256 — 2,256 — Liabilities Noninterest bearing deposits 1,982,912 1,982,912 — 1,982,912 — Interest bearing deposits 3,041,563 3,041,563 — 3,041,563 — Certificates of deposit 829,509 829,886 — 829,886 — Customer repurchase agreements 76,561 76,561 — 76,561 — Borrowings 541,905 533,162 — 533,162 — Mortgage banking derivatives 10 10 — — 10 (1) Carrying amount is net of unearned income and the allowance for credit losses. In accordance with the prospective adoption of ASU No. 2016-01, the fair value of loans was measured using an exit price notion. (2) Carrying amount is net of unearned income and the allowance for credit losses. The fair value of loans was measured using an entry price notion.

Investment Securities Availab_3

Investment Securities Available-for-Sale (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Amortized cost	$ 741,613	$ 594,386
Gross unrealized gains	592	1,928
Gross unrealized losses	19,531	7,046
Estimated fair value	722,674	589,268
US Agency Securities [Member]
Amortized cost	236,853	198,115
Gross unrealized gains		283
Gross unrealized losses	6,528	2,414
Estimated fair value	230,325	195,984
Residential Mortgage Backed Securities [Member]
Amortized cost	448,335	322,067
Gross unrealized gains	140	187
Gross unrealized losses	12,126	4,418
Estimated fair value	436,349	317,836
Municipal Bonds [Member]
Amortized cost	48,203	60,976
Gross unrealized gains	391	1,295
Gross unrealized losses	858	214
Estimated fair value	47,736	62,057
Corporate Bonds [Member]
Amortized cost	8,004	13,010
Gross unrealized gains	61	163
Gross unrealized losses	19
Estimated fair value	8,046	13,173
Investment Securities [Member]
Amortized cost	218	218
Estimated fair value	$ 218	$ 218

Investment Securities Availab_4

Investment Securities Available-for-Sale (Details 1) $ in Thousands	Sep. 30, 2018USD ($)Number	Dec. 31, 2017USD ($)Number
Available-for-sale securities in a continuous loss position, number of securities | Number	263	183
Available-for-sale securities in a continuous loss position, less than 12 months, estimated fair value	$ 368,791	$ 272,060
Available-for-sale securities in a continuous loss position, less than 12 months, unrealized losses	6,218	2,593
Available-for-sale securities in a continuous loss position, 12 months or greater, estimated fair value	316,786	203,046
Available-for-sale securities in a continuous loss position, 12 months or greater, unrealized losses	13,313	4,453
Available-for-sale securities in a continuous loss position, estimated fair value	685,577	475,106
Available-for-sale securities in a continuous loss position, unrealized losses	$ 19,531	$ 7,046
US Agency Securities [Member]
Available-for-sale securities in a continuous loss position, number of securities | Number	61	38
Available-for-sale securities in a continuous loss position, less than 12 months, estimated fair value	$ 111,702	$ 102,264
Available-for-sale securities in a continuous loss position, less than 12 months, unrealized losses	1,909	1,073
Available-for-sale securities in a continuous loss position, 12 months or greater, estimated fair value	115,678	55,093
Available-for-sale securities in a continuous loss position, 12 months or greater, unrealized losses	4,619	1,341
Available-for-sale securities in a continuous loss position, estimated fair value	227,380	157,357
Available-for-sale securities in a continuous loss position, unrealized losses	$ 6,528	$ 2,414
Residential Mortgage Backed Securities [Member]
Available-for-sale securities in a continuous loss position, number of securities | Number	184	137
Available-for-sale securities in a continuous loss position, less than 12 months, estimated fair value	$ 237,720	$ 152,350
Available-for-sale securities in a continuous loss position, less than 12 months, unrealized losses	3,938	1,306
Available-for-sale securities in a continuous loss position, 12 months or greater, estimated fair value	190,668	147,953
Available-for-sale securities in a continuous loss position, 12 months or greater, unrealized losses	8,188	3,112
Available-for-sale securities in a continuous loss position, estimated fair value	428,388	300,303
Available-for-sale securities in a continuous loss position, unrealized losses	$ 12,126	$ 4,418
Municipal Bonds [Member]
Available-for-sale securities in a continuous loss position, number of securities | Number	16	8
Available-for-sale securities in a continuous loss position, less than 12 months, estimated fair value	$ 16,388	$ 17,446
Available-for-sale securities in a continuous loss position, less than 12 months, unrealized losses	352	214
Available-for-sale securities in a continuous loss position, 12 months or greater, estimated fair value	10,440
Available-for-sale securities in a continuous loss position, 12 months or greater, unrealized losses	506
Available-for-sale securities in a continuous loss position, estimated fair value	26,828	17,446
Available-for-sale securities in a continuous loss position, unrealized losses	$ 858	$ 214
Corporate Bonds [Member]
Available-for-sale securities in a continuous loss position, number of securities | Number	2
Available-for-sale securities in a continuous loss position, less than 12 months, estimated fair value	$ 2,981
Available-for-sale securities in a continuous loss position, less than 12 months, unrealized losses	19
Available-for-sale securities in a continuous loss position, estimated fair value	2,981
Available-for-sale securities in a continuous loss position, unrealized losses	$ 19

Investment Securities Availab_5

Investment Securities Available-for-Sale (Details 2) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Amortized cost	$ 741,613	$ 594,386
Estimated fair value	722,674	589,268
US Agency Securities [Member]
One year or less, amortized cost	119,017	109,893
After one year through five years, amortized cost	104,464	74,106
Five years through ten years, amortized cost	13,372	14,116
One year or less, estimated fair value	114,692	108,198
After one year through five years, estimated fair value	102,953	73,916
Five years through ten years, estimated fair value	12,680	13,870
Residential Mortgage Backed Securities [Member]
Amortized cost, without maturity date	448,335	322,067
Estimated fair value, without maturity date	436,349	317,836
Municipal Bonds [Member]
One year or less, amortized cost	9,882	5,068
After one year through five years, amortized cost	15,579	19,405
Five years through ten years, amortized cost	21,675	35,432
After ten years, amortized cost	1,067	1,071
One year or less, estimated fair value	9,969	5,171
After one year through five years, estimated fair value	15,541	19,879
Five years through ten years, estimated fair value	21,094	35,846
After ten years, estimated fair value	1,132	1,161
Corporate Bonds [Member]
After one year through five years, amortized cost	6,504	11,510
After ten years, amortized cost	1,500	1,500
After one year through five years, estimated fair value	6,546	11,673
After ten years, estimated fair value	1,500	1,500
Investment Securities [Member]
Amortized cost, without maturity date	218	218
Estimated fair value, without maturity date	$ 218	$ 218

Investment Securities Availab_6

Investment Securities Available-for-Sale (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Federal home loan bank stock and federal reserve bank stock	$ 37,257		$ 36,324
Debt securities as percentage of total investment securities	99.90%
Debt securities weighted average duration	3 years 10 months 24 days
Available-for-sale securities, gross realized gains	$ 93	$ 795
Available-for-sale securities, gross realized losses	25	254
Proceeds from sale of available-for-sale securities	32,000	$ 70,100
Available-for-sale securities pledged as collateral	$ 486,900		$ 465,400

Mortgage Banking Derivative (De

Mortgage Banking Derivative (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Designated as Hedging Instrument [Member]
Noninterest income (loss), other	$ 56	$ 14	$ 56	$ 912
Mortgage Banking Derivative [Member]
Derivative, notional amount	39,900		39,900		$ 37,100
Noninterest income (loss), other	10	$ 71		$ 335
Mortgage Banking Derivative [Member] | Other Assets [Member]
Derivative asset	80		80		43
Mortgage Banking Derivative [Member] | Other Liabilities [Member]
Derivative liability	$ 28		$ 28		$ 10

Loans and Allowance for Credi_3

Loans and Allowance for Credit Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Loans	$ 6,844,672	$ 6,411,528
Loans, percent	100.00%	100.00%
Less: allowance for credit losses	$ (68,189)	$ (64,758)
Loans, net	6,776,483	6,346,770
Commercial [Member]
Loans	$ 1,493,577	$ 1,375,939
Loans, percent	22.00%	21.00%
Income Producing - Commercial Real Estate [Member]
Loans	$ 3,189,910	$ 3,047,094
Loans, percent	46.00%	48.00%
Owner Occupied - Commercial Real Estate - [Member]
Loans	$ 863,162	$ 755,444
Loans, percent	13.00%	12.00%
Real Estate Mortgage - Residential [Member]
Loans	$ 104,864	$ 104,357
Loans, percent	2.00%	2.00%
Construction - Commercial And Residential [Member]
Loans	$ 1,104,163	$ 1,031,832
Construction - Commercial And Residential [Member] | Commercial And Residential [Member]
Loans	$ 1,047,591	$ 973,141
Loans, percent	15.00%	15.00%
Construction - Commercial And Residential [Member] | C & I Owner Occupied [Member]
Loans	$ 56,572	$ 58,691
Loans, percent	1.00%	1.00%
Home Equity [Member]
Loans	$ 86,525	$ 93,264
Loans, percent	1.00%	1.00%
Other Consumer [Member]
Loans	$ 2,471	$ 3,598

Loans and Allowance for Credi_4

Loans and Allowance for Credit Losses (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Allowance for Credit Losses, beginning balance	$ 66,609	$ 61,047	$ 64,758	$ 59,074
Loans charged-off	(1,832)	(593)	(3,863)	(2,266)
Recoveries of loans previously charged-off	971	592	1,234	1,275
Net loans charged-off	(861)	(1)	(2,629)	(991)
Provision for credit losses	2,441	1,921	6,060	4,884
Allowance for Credit Losses, ending balance	68,189	62,967	68,189	62,967
Individually evaluated for impairment	9,870	8,700	9,870	8,700
Collectively evaluated for impairment	58,319	54,267	58,319	54,267
Commercial [Member]
Allowance for Credit Losses, beginning balance	12,206	14,225	13,102	14,700
Loans charged-off	(1,174)	(522)	(2,435)	(659)
Recoveries of loans previously charged-off	60	407	86	675
Net loans charged-off	(1,114)	(115)	(2,349)	16
Provision for credit losses	4,557	(2,266)	4,896	(2,872)
Allowance for Credit Losses, ending balance	15,649	11,844	15,649	11,844
Individually evaluated for impairment	6,271	3,246	6,271	3,246
Collectively evaluated for impairment	9,378	8,598	9,378	8,598
Income Producing - Commercial Real Estate [Member]
Allowance for Credit Losses, beginning balance	27,988	23,308	25,376	21,105
Loans charged-off			(121)	(1,470)
Recoveries of loans previously charged-off		30	2	80
Net loans charged-off		30	(119)	(1,390)
Provision for credit losses	(601)	(963)	2,130	2,660
Allowance for Credit Losses, ending balance	27,387	22,375	27,387	22,375
Individually evaluated for impairment	3,043	1,378	3,043	1,378
Collectively evaluated for impairment	24,344	20,997	24,344	20,997
Owner Occupied - Commercial Real Estate - [Member]
Allowance for Credit Losses, beginning balance	6,003	4,189	5,934	4,010
Loans charged-off			(132)
Recoveries of loans previously charged-off			2	2
Net loans charged-off			(130)	2
Provision for credit losses	(72)	1,273	127	1,450
Allowance for Credit Losses, ending balance	5,931	5,462	5,931	5,462
Individually evaluated for impairment	500	1,005	500	1,005
Collectively evaluated for impairment	5,431	4,457	5,431	4,457
Real Estate Mortgage - Residential [Member]
Allowance for Credit Losses, beginning balance	757	1,081	944	1,284
Loans charged-off
Recoveries of loans previously charged-off	1	2	4	5
Net loans charged-off	1	2	4	5
Provision for credit losses	(9)	(126)	(199)	(332)
Allowance for Credit Losses, ending balance	749	957	749	957
Individually evaluated for impairment
Collectively evaluated for impairment	749	957	749	957
Construction - Commercial And Residential [Member]
Allowance for Credit Losses, beginning balance	18,651	16,727	18,492	16,487
Loans charged-off	(643)	(39)	(1,160)	(39)
Recoveries of loans previously charged-off	899	146	994	491
Net loans charged-off	256	107	(166)	452
Provision for credit losses	(1,368)	4,052	(787)	3,947
Allowance for Credit Losses, ending balance	17,539	20,886	17,539	20,886
Individually evaluated for impairment		2,900		2,900
Collectively evaluated for impairment	17,539	17,986	17,539	17,986
Home Equity [Member]
Allowance for Credit Losses, beginning balance	673	1,216	770	1,328
Loans charged-off
Recoveries of loans previously charged-off	6	1	133	4
Net loans charged-off	6	1	133	4
Provision for credit losses	(48)	(120)	(272)	(235)
Allowance for Credit Losses, ending balance	631	1,097	631	1,097
Individually evaluated for impairment		90		90
Collectively evaluated for impairment	631	1,007	631	1,007
Other Consumer [Member]
Allowance for Credit Losses, beginning balance	331	301	140	160
Loans charged-off	(15)	(32)	(15)	(98)
Recoveries of loans previously charged-off	5	6	13	18
Net loans charged-off	(10)	(26)	(2)	(80)
Provision for credit losses	(18)	71	165	266
Allowance for Credit Losses, ending balance	303	346	303	346
Individually evaluated for impairment	56	81	56	81
Collectively evaluated for impairment	$ 247	$ 265	$ 247	$ 265

Loans and Allowance for Credi_5

Loans and Allowance for Credit Losses (Details 2) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Recorded investment in loans:
Loans individually evaluated for impairment	$ 46,931	$ 30,191
Loans collectively evaluated for impairment	6,797,741	6,381,337
Net loans	6,844,672	6,411,528
Commercial [Member]
Recorded investment in loans:
Loans individually evaluated for impairment	27,370	8,726
Loans collectively evaluated for impairment	1,466,207	1,367,213
Net loans	1,493,577	1,375,939
Income Producing - Commercial Real Estate [Member]
Recorded investment in loans:
Loans individually evaluated for impairment	9,404	10,192
Loans collectively evaluated for impairment	3,180,506	3,036,902
Net loans	3,189,910	3,047,094
Owner Occupied - Commercial Real Estate - [Member]
Recorded investment in loans:
Loans individually evaluated for impairment	5,312	5,501
Loans collectively evaluated for impairment	857,850	749,943
Net loans	863,162	755,444
Real Estate Mortgage - Residential [Member]
Recorded investment in loans:
Loans individually evaluated for impairment	1,236	478
Loans collectively evaluated for impairment	103,628	103,879
Net loans	104,864	104,357
Construction - Commercial And Residential [Member]
Recorded investment in loans:
Loans individually evaluated for impairment	3,030	4,709
Loans collectively evaluated for impairment	1,101,133	1,027,123
Net loans	1,104,163	1,031,832
Home Equity [Member]
Recorded investment in loans:
Loans individually evaluated for impairment	487	494
Loans collectively evaluated for impairment	86,038	92,770
Net loans	86,525	93,264
Other Consumer [Member]
Recorded investment in loans:
Loans individually evaluated for impairment	92	91
Loans collectively evaluated for impairment	2,379	3,507
Net loans	$ 2,471	$ 3,598

Loans and Allowance for Credi_6

Loans and Allowance for Credit Losses (Details 3) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Loans and leases receivable, net of deferred income	$ 6,844,672	$ 6,411,528
Pass [Member]
Loans and leases receivable, net of deferred income	6,715,047	6,288,782
Watch and Special Mention [Member]
Loans and leases receivable, net of deferred income	82,694	92,555
Substandard [Member]
Loans and leases receivable, net of deferred income	46,931	30,191
Commercial [Member]
Loans and leases receivable, net of deferred income	1,493,577	1,375,939
Commercial [Member] | Pass [Member]
Loans and leases receivable, net of deferred income	1,444,780	1,333,050
Commercial [Member] | Watch and Special Mention [Member]
Loans and leases receivable, net of deferred income	21,427	34,163
Commercial [Member] | Substandard [Member]
Loans and leases receivable, net of deferred income	27,370	8,726
Income Producing - Commercial Real Estate [Member]
Loans and leases receivable, net of deferred income	3,189,910	3,047,094
Income Producing - Commercial Real Estate [Member] | Pass [Member]
Loans and leases receivable, net of deferred income	3,156,777	3,033,046
Income Producing - Commercial Real Estate [Member] | Watch and Special Mention [Member]
Loans and leases receivable, net of deferred income	23,729	3,856
Income Producing - Commercial Real Estate [Member] | Substandard [Member]
Loans and leases receivable, net of deferred income	9,404	10,192
Owner Occupied - Commercial Real Estate - [Member]
Loans and leases receivable, net of deferred income	863,162	755,444
Owner Occupied - Commercial Real Estate - [Member] | Pass [Member]
Loans and leases receivable, net of deferred income	821,647	696,754
Owner Occupied - Commercial Real Estate - [Member] | Watch and Special Mention [Member]
Loans and leases receivable, net of deferred income	36,203	53,189
Owner Occupied - Commercial Real Estate - [Member] | Substandard [Member]
Loans and leases receivable, net of deferred income	5,312	5,501
Real Estate Mortgage - Residential [Member]
Loans and leases receivable, net of deferred income	104,864	104,357
Real Estate Mortgage - Residential [Member] | Pass [Member]
Loans and leases receivable, net of deferred income	102,979	103,220
Real Estate Mortgage - Residential [Member] | Watch and Special Mention [Member]
Loans and leases receivable, net of deferred income	649	659
Real Estate Mortgage - Residential [Member] | Substandard [Member]
Loans and leases receivable, net of deferred income	1,236	478
Construction - Commercial And Residential [Member]
Loans and leases receivable, net of deferred income	1,104,163	1,031,832
Construction - Commercial And Residential [Member] | Pass [Member]
Loans and leases receivable, net of deferred income	1,101,133	1,027,123
Construction - Commercial And Residential [Member] | Watch and Special Mention [Member]
Loans and leases receivable, net of deferred income
Construction - Commercial And Residential [Member] | Substandard [Member]
Loans and leases receivable, net of deferred income	3,030	4,709
Home Equity [Member]
Loans and leases receivable, net of deferred income	86,525	93,264
Home Equity [Member] | Pass [Member]
Loans and leases receivable, net of deferred income	85,352	92,084
Home Equity [Member] | Watch and Special Mention [Member]
Loans and leases receivable, net of deferred income	686	686
Home Equity [Member] | Substandard [Member]
Loans and leases receivable, net of deferred income	487	494
Other Consumer [Member]
Loans and leases receivable, net of deferred income	2,471	3,598
Other Consumer [Member] | Pass [Member]
Loans and leases receivable, net of deferred income	2,379	3,505
Other Consumer [Member] | Watch and Special Mention [Member]
Loans and leases receivable, net of deferred income		2
Other Consumer [Member] | Substandard [Member]
Loans and leases receivable, net of deferred income	$ 92	$ 91

Loans and Allowance for Credi_7

Loans and Allowance for Credit Losses (Details 4) - USD ($) $ in Thousands		Sep. 30, 2018	Dec. 31, 2017
Nonaccrual loan, recorded investment	[1],[2]	$ 15,077	$ 13,238
Commercial [Member]
Nonaccrual loan, recorded investment		7,529	3,493
Income Producing - Commercial Real Estate [Member]
Nonaccrual loan, recorded investment		48	832
Owner Occupied - Commercial Real Estate - [Member]
Nonaccrual loan, recorded investment		2,370	5,501
Real Estate Mortgage - Residential [Member]
Nonaccrual loan, recorded investment		1,522	775
Construction - Commercial And Residential [Member]
Nonaccrual loan, recorded investment		3,030	2,052
Home Equity [Member]
Nonaccrual loan, recorded investment		487	494
Other Consumer [Member]
Nonaccrual loan, recorded investment		$ 91	$ 91
[1]	Excludes troubled debt restructurings (TDRs) that were performing under their restructured terms totaling $17.5 million at September 30, 2018 and $12.3 million at December 31, 2017.
[2]	Gross interest income of $707 thousand and $802 thousand would have been recorded for the nine months ended September 30, 2018 and 2017, respectively, if nonaccrual loans shown above had been current and in accordance with their original terms. while the interest actually recorded on such loans was $193 thousand and $56 thousand for the nine months ended September 30, 2018 and 2017, respectively. See Note 1 to the Consolidated Financial Statements for a description of the Company's policy for placing loans on nonaccrual status.

Loans and Allowance for Credi_8

Loans and Allowance for Credit Losses (Details 5) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Loans past due	$ 55,214	$ 46,310
Current loans	6,789,458	6,365,218
Total recorded investment in loans	6,844,672	6,411,528
Real Estate Mortgage - Residential [Member]
Loans past due	1,522	9,012
Current loans	103,342	95,345
Total recorded investment in loans	104,864	104,357
Owner Occupied - Commercial Real Estate - [Member]
Loans past due	11,676	9,929
Current loans	851,486	745,515
Total recorded investment in loans	863,162	755,444
Other Consumer [Member]
Loans past due	95	142
Current loans	2,376	3,456
Total recorded investment in loans	2,471	3,598
Income Producing - Commercial Real Estate [Member]
Loans past due	1,209	12,160
Current loans	3,188,701	3,034,934
Total recorded investment in loans	3,189,910	3,047,094
Home Equity [Member]
Loans past due	813	801
Current loans	85,712	92,463
Total recorded investment in loans	86,525	93,264
Construction - Commercial And Residential [Member]
Loans past due	26,826	7,320
Current loans	1,077,337	1,024,512
Total recorded investment in loans	1,104,163	1,031,832
Commercial [Member]
Loans past due	13,073	6,946
Current loans	1,480,504	1,368,993
Total recorded investment in loans	1,493,577	1,375,939
Financing Receivables, 30 to 59 Days Past Due [Member]
Loans past due	31,837	14,970
Financing Receivables, 30 to 59 Days Past Due [Member] | Real Estate Mortgage - Residential [Member]
Loans past due		6,993
Financing Receivables, 30 to 59 Days Past Due [Member] | Owner Occupied - Commercial Real Estate - [Member]
Loans past due	4,500	522
Financing Receivables, 30 to 59 Days Past Due [Member] | Other Consumer [Member]
Loans past due	4	45
Financing Receivables, 30 to 59 Days Past Due [Member] | Income Producing - Commercial Real Estate [Member]
Loans past due	763	4,398
Financing Receivables, 30 to 59 Days Past Due [Member] | Home Equity [Member]
Loans past due	326	307
Financing Receivables, 30 to 59 Days Past Due [Member] | Construction - Commercial And Residential [Member]
Loans past due	21,947
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial [Member]
Loans past due	4,297	2,705
Financing Receivables, 60 to 89 Days Past Due [Member]
Loans past due	8,300	18,102
Financing Receivables, 60 to 89 Days Past Due [Member] | Real Estate Mortgage - Residential [Member]
Loans past due		1,244
Financing Receivables, 60 to 89 Days Past Due [Member] | Owner Occupied - Commercial Real Estate - [Member]
Loans past due	4,806	3,906
Financing Receivables, 60 to 89 Days Past Due [Member] | Other Consumer [Member]
Loans past due		6
Financing Receivables, 60 to 89 Days Past Due [Member] | Income Producing - Commercial Real Estate [Member]
Loans past due	398	6,930
Financing Receivables, 60 to 89 Days Past Due [Member] | Construction - Commercial And Residential [Member]
Loans past due	1,849	5,268
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial [Member]
Loans past due	1,247	748
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans past due	15,077	13,238
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Real Estate Mortgage - Residential [Member]
Loans past due	1,522	775
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Owner Occupied - Commercial Real Estate - [Member]
Loans past due	2,370	5,501
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Other Consumer [Member]
Loans past due	91	91
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Income Producing - Commercial Real Estate [Member]
Loans past due	48	832
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Home Equity [Member]
Loans past due	487	494
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Construction - Commercial And Residential [Member]
Loans past due	3,030	2,052
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial [Member]
Loans past due	$ 7,529	$ 3,493

Loans and Allowance for Credi_9

Loans and Allowance for Credit Losses (Details 6) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Unpaid Contractual Principal Balance	$ 33,095		$ 33,095		$ 25,696
Recorded Investment With No Allowance	5,488		5,488		6,456
Recorded Investment With Allowance	27,135		27,135		19,121
Total Recorded Investment	32,623		32,623		25,577
Related Allowance	9,870		9,870		7,601
Average Recorded Investment	29,313	$ 27,240	27,836	$ 25,695
Interest Income Recognized	590	198	896	730
Commercial [Member]
Unpaid Contractual Principal Balance	12,943		12,943		5,644
Recorded Investment With No Allowance					1,777
Recorded Investment With Allowance	12,471		12,471		3,748
Total Recorded Investment	12,471		12,471		5,525
Related Allowance	6,271		6,271		3,259
Average Recorded Investment	10,234	5,764	8,431	5,765
Interest Income Recognized	277	48	316	145
Income Producing - Commercial Real Estate [Member]
Unpaid Contractual Principal Balance	9,260		9,260		10,044
Recorded Investment With No Allowance					781
Recorded Investment With Allowance	9,260		9,260		9,263
Total Recorded Investment	9,260		9,260		10,044
Related Allowance	3,043		3,043		2,380
Average Recorded Investment	9,292	10,068	9,277	10,127
Interest Income Recognized	120	120	361	493
Owner Occupied - Commercial Real Estate - [Member]
Unpaid Contractual Principal Balance	5,761		5,761		6,596
Recorded Investment With No Allowance	449		449		1,095
Recorded Investment With Allowance	5,312		5,312		5,501
Total Recorded Investment	5,761		5,761		6,596
Related Allowance	500		500		1,382
Average Recorded Investment	5,940	6,743	6,104	5,210
Interest Income Recognized	125	27	149	73
Real Estate Mortgage - Residential [Member]
Unpaid Contractual Principal Balance	1,522		1,522		775
Recorded Investment With No Allowance	1,522		1,522		775
Total Recorded Investment	1,522		1,522		775
Average Recorded Investment	1,749	538	1,747	423
Interest Income Recognized		17	2	17
Construction - Commercial And Residential [Member]
Unpaid Contractual Principal Balance	3,030		3,030		2,052
Recorded Investment With No Allowance	3,030		3,030		1,534
Recorded Investment With Allowance					518
Total Recorded Investment	3,030		3,030		2,052
Related Allowance					500
Average Recorded Investment	1,515	3,491	1,694	3,731
Interest Income Recognized	68	(14)	68
Home Equity [Member]
Unpaid Contractual Principal Balance	487		487		494
Recorded Investment With No Allowance	487		487		494
Total Recorded Investment	487		487		494
Average Recorded Investment	491	544	492	346
Interest Income Recognized				2
Other Consumer [Member]
Unpaid Contractual Principal Balance	92		92		91
Recorded Investment With Allowance	92		92		91
Total Recorded Investment	92		92		91
Related Allowance	56		56		$ 80
Average Recorded Investment	$ 92	$ 92	$ 91	$ 93

Loans and Allowance for Cred_10

Loans and Allowance for Credit Losses (Details 7) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018USD ($)Number	Dec. 31, 2017USD ($)Number
Number of loans - restructured accruing | Number	10	9
Number of loans - restructured nonaccruing | Number	4	5
Number of loans | Number	14	14
Restructured accruing	$ 17,545	$ 12,339
Restructured nonaccruing	723	988
Troubled Debt Restructured	18,268	13,327
Specific allowance	5,500	2,945
Restructured and subsequently defaulted	937	237
Commercial [Member]
Restructured accruing	4,942	2,032
Restructured nonaccruing	723	867
Troubled Debt Restructured	5,665	2,899
Specific allowance	2,000	595
Restructured and subsequently defaulted		237
Income Producing - Commercial Real Estate [Member]
Restructured accruing	9,212	9,212
Restructured nonaccruing		121
Troubled Debt Restructured	9,212	9,333
Specific allowance	3,500	2,350
Restructured and subsequently defaulted	937
Owner Occupied - Commercial Real Estate - [Member]
Restructured accruing	3,391	1,095
Troubled Debt Restructured	$ 3,391	$ 1,095

Loans and Allowance for Cred_11

Loans and Allowance for Credit Losses (Details Narrative) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)Number	Sep. 30, 2017USD ($)Number	Dec. 31, 2017USD ($)
Loans and leases receivable, deferred fees	$ 24,500		$ 23,900
Servicing asset at fair value, amount	207,300		$ 195,300
Stress test assumption increase interest rates			2.00%
Financing receivable, net	6,844,672		$ 6,411,528
Financing receivable, modifications, recorded investment	18,300
Nonaccrual loans, gross interest income if in compliance	707	$ 802
Nonaccrual loans, recorded interest income	$ 193	$ 56
Financing receivable modifications number of contracts outstanding | Number	13	10
Loans	$ 9	$ 1
Loans secured by real estate (percent)	84.00%
ADC Loans [Member]
Percent of ADC loan portfolio using interest reserves	77.00%
Financing receivable, net	$ 1,460,000
Owner Occupied Commercial Real Estate and Construction [Member]
Percent of loan portfolio	14.00%
Income Producing Commercial Real Estate and Real Estate Construction [Member]
Percent of loan portfolio	61.00%
Minimum cash flow debt service coverage ratio	1.15
Maximum loan to value (percent)	80.00%
Commercial Real Estate and Real Estate Construction Loans [Member]
Percent of loan portfolio	75.00%
Commercial [Member]
Percent of loan portfolio	22.00%
Financing receivable, net	$ 1,493,577		1,375,939
Financing receivable, modifications, recorded investment	$ 6,149
Commercial [Member] | Maximum [Member]
Loan period	10 years
Amortization term	25 years
Commercial [Member] | Maximum [Member] | Preferred Term [Member]
Loan period	7 years
Commercial [Member] | Minimum [Member] | Preferred Term [Member]
Loan period	5 years
Commercial [Member] | SBA Loans [Member]
Percent of loan portfolio	2.00%
Consumer Portfolio Segment [Member]
Percent of loan portfolio	1.00%
Consumer Portfolio Segment [Member] | Land Acquisition Development and Construction Loans [Member] | Maximum [Member]
Loan period	2 years
Real Estate Mortgage - Residential [Member]
Financing receivable, net	$ 104,864		104,357
Real Estate Mortgage - Residential [Member] | Real Estate Loan [Member]
Percent of loan portfolio	2.00%
Real Estate Mortgage - Residential [Member] | Land Acquisition Development and Construction Loans [Member] | Maximum [Member]
Loan period	3 years
Performing Financial Instruments [Member]
Financing receivable, modifications, recorded investment	$ 17,500	$ 5,100	12,300
Nonperforming Financial Instruments [Member] | Fidelity [Member]
Certain loans acquired in transfer not accounted for as debt securities, carrying amount, net	287		297
Certain loans acquired in transfer not accounted for as debt securities, outstanding balance	337		347
Nonperforming Financial Instruments [Member] | Virginia Heritage Bank [Member]
Certain loans acquired in transfer not accounted for as debt securities, carrying amount, net	394		479
Certain loans acquired in transfer not accounted for as debt securities, outstanding balance	$ 1,200		$ 1,500

Interest Rate Swap Derivative_2

Interest Rate Swap Derivatives (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Notional Amount	$ 250,000	$ 250,000
Fair value	6,427	2,256
Other Assets [Member] | Interest Rate Swap 1 [Member]
Notional Amount	75,000	75,000
Fair value	1,240	598
Other Assets [Member] | Interest Rate Swap 2 [Member]
Notional Amount	100,000	100,000
Fair value	2,539	821
Other Assets [Member] | Interest Rate Swap 3 [Member]
Notional Amount	75,000	75,000
Fair value	2,648	$ 837
Other Liabilities [Member]
Notional Amount	27,500
Fair value	29
Other Liabilities [Member] | Other Contracts Swap 1 [Member]
Notional Amount	27,500
Fair value	$ 29

Interest Rate Swap Derivative_3

Interest Rate Swap Derivatives (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Interest Rate Swap 1 [Member]
Amount of pre-tax gain (loss) recognized in OCI	$ 111	$ 90	$ 791	$ 148
Effective portion reclassified from AOCI into income	26	(72)	(26)	(338)
Interest Rate Swap 2 [Member]
Amount of pre-tax gain (loss) recognized in OCI	426	73	1,769	51
Effective portion reclassified from AOCI into income	(8)	(122)	(35)	(525)
Interest Rate Swap 3 [Member]
Amount of pre-tax gain (loss) recognized in OCI	312	51	1,841	31
Effective portion reclassified from AOCI into income	(56)	(113)	(400)	(458)
Interest Rate Swap [Member]
Amount of pre-tax gain (loss) recognized in OCI	849	214	4,401	230
Effective portion reclassified from AOCI into income	$ (38)	$ (307)	$ (461)	$ (1,321)

Interest Rate Swap Derivative_4

Interest Rate Swap Derivatives (Details 2) - Interest contracts [Member] - Interest Income Expense [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Effects cash flow hedges on income statement	$ 214	$ (307)	$ 230	$ (1,321)
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income	$ 214	$ (307)	$ 230	$ (1,321)

Interest Rate Swap Derivative_5

Interest Rate Swap Derivatives (Details 3) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Gross Amount of Recognized Assets	$ 6,427	$ 2,256
Interest Rate Swap [Member]
Gross Amount of Recognized Assets	6,461	2,201
Net amounts of assets presented in the balance sheet	6,461	2,201
Gross amounts not offset in the balance sheet net amount	6,461	2,201
Counter Party 1 [Member] | Interest Rate Swap [Member]
Gross Amount of Recognized Assets	5,220	1,619
Net amounts of assets presented in the balance sheet	5,220	1,619
Gross amounts not offset in the balance sheet net amount	5,220	1,619
Counter Party 2 [Member] | Interest Rate Swap [Member]
Gross Amount of Recognized Assets	1,270	582
Net amounts of assets presented in the balance sheet	1,270	582
Gross amounts not offset in the balance sheet net amount	1,270	$ 582
Counter Party 3 [Member] | Interest Rate Swap [Member]
Gross Amount of Recognized Assets	(29)
Net amounts of assets presented in the balance sheet	(29)
Gross amounts not offset in the balance sheet net amount	$ (29)

Interest Rate Swap Derivative_6

Interest Rate Swap Derivatives (Details Narrative) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018USD ($)Number	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)Number	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Notional amount	$ 250,000		$ 250,000		$ 250,000
Designated cash flow hedge derivatives reclassified from accumulated oci into interest	$ 21,069	$ 10,434	$ 52,424	$ 28,980
Interest Rate Swap [Member]
Derivative, number of instruments held | Number	3		3
Notional amount	$ 250,000		$ 250,000
Unrealized gain (loss) on derivatives			6,400		$ 2,300
Derivative instruments, gain (loss) reclassified from accumulated oci into income, effective portion, net	(38)	(307)	(461)	(1,321)
Estimated amount to be reclassified to interest expense (based on existing interest rates) for cash flow hedges			$ 2,100
Estimate of time to transfer from AOCI to interest income/expense for designated cash flow hedge derivatives			12 months
Interest Rate Swap [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Designated cash flow hedge derivatives reclassified from accumulated oci into interest	$ (214)	$ (307)	$ 230	$ 1,300

Other Real Estate Owned (Detail

Other Real Estate Owned (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Other Real Estate [Roll Forward]
Balance beginning of period	$ 1,394	$ 1,394	$ 1,394	$ 2,694
Real estate acquired from borrowers		1,145		1,145
Properties sold		(1,145)		(2,445)
Balance end of period	$ 1,394	$ 1,394	$ 1,394	$ 1,394

Other Real Estate Owned (Deta_2

Other Real Estate Owned (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Real Estate [Abstract]
Proceeds from sale of other real estate	$ 1,100	$ 2,144
Gains (losses) on sales of other real estate	60	(301)
Other real estate owned	$ 1,394	$ 1,394	$ 1,394	$ 1,394	$ 1,394	$ 1,394	$ 2,694

Long-Term Borrowings (Details)

Long-Term Borrowings (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Less: unamortized debt issuance costs	$ (2,802)	$ (3,095)
Long-term borrowings	217,198	216,905
Subordinated Notes, 5.75% [Member]
Subordinated notes	70,000	70,000
Subordinated Notes, 5.0% [Member]
Subordinated notes	$ 150,000	$ 150,000

Long-Term Borrowings (Details N

Long-Term Borrowings (Details Narrative) - USD ($) $ in Thousands	Jul. 26, 2016	Aug. 05, 2014	Sep. 30, 2018	Dec. 31, 2017
Proceeds from issuance of subordinated long-term debt	$ 147,350	$ 68,800
Subordinated Debt [Member]
Face amount	$ 150,000	$ 70,000
Debt instrument, interest rate, stated percentage	5.00%	5.75%
Payments of debt issuance costs	$ 2,600	$ 1,200
Subordinated Notes, 5.0% [Member]
Debt instrument, interest rate, stated percentage			5.00%	5.00%
Subordinated Notes, 5.75% [Member]
Debt instrument, interest rate, stated percentage			5.75%	5.75%

Net Income per Common Share (De

Net Income per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Basic:
Net income	$ 38,948	$ 29,874	$ 111,959	$ 84,663
Average common shares outstanding (in shares)	34,309	34,174	34,292	34,124
Basic net income per common share (in dollars per share)	$ 1.14	$ 0.87	$ 3.26	$ 2.48
Diluted:
Net income	$ 38,948	$ 29,874	$ 111,959	$ 84,663
Average common shares outstanding (in shares)	34,309	34,174	34,292	34,124
Adjustment for common share equivalents (in shares)	152	164	152	192
Average common shares outstanding-diluted (in shares)	34,461	34,338	34,444	34,316
Diluted net income per common share (in dollars per share)	$ 1.13	$ 0.87	$ 3.25	$ 2.47
Anti-dilutive shares (in shares)	3

Other Comprehensive Income (Det

Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Other Comprehensive Income
Net unrealized gain (loss) on securities available-for-sale, before tax	$ (4,253)	$ 25	$ (13,079)	$ 2,080
Less: Reclassification adjustment for net gains/loss included in net income, before tax		(11)	(68)	(542)
Total unrealized gain (loss), before tax	(4,253)	14	(13,147)	1,538
Net unrealized gain (loss) on derivatives, before tax	846	557	4,380	2,186
Less: Reclassification adjustment for gains/losses included in net income, before tax	(211)	(289)	(209)	(1,308)
Total unrealized gain (loss) on derivatives, before tax	635	268	4,171	878
Other Comprehensive Income (Loss), before tax	(3,618)	282	(8,976)	2,416
Net unrealized gain (loss) on securities available-for-sale, tax effect	1,105	10	2,873	837
Less: Reclassification adjustment for net gains/loss included in net income, tax		(4)	(17)	(202)
Total unrealized gain (loss), tax effect	1,105	6	2,856	635
Net unrealized gain (loss) on derivatives, tax effect	221	210	833	836
Less: Reclassification adjustment for gains/losses included in net income, tax effect	(53)	(106)	(53)	(487)
Total unrealized gain (loss) on derivatives, tax effect	168	104	780	349
Other Comprehensive Income (Loss), tax effect	1,273	110	3,636	984
Net unrealized gain (loss) on securities available-for-sale, net of tax	(3,148)	15	(10,206)	1,243
Less: Reclassification adjustment for net gains/loss included in net income, net of tax		(7)	(51)	(340)
Total unrealized gain (loss) on investment securities, net of tax	(3,148)	8	(10,257)	903
Net unrealized gain (loss) on derivatives, net of tax	625	347	3,547	1,350
Less: Reclassification adjustment for gains/losses included in net income, net of tax	(158)	(183)	(156)	(821)
Total unrealized gain (loss) on derivatives, net of tax	467	164	3,391	529
Other comprehensive income (loss), net of tax	$ (2,681)	$ 172	$ (6,866)	$ 1,432

Other Comprehensive Income (D_2

Other Comprehensive Income (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Securities Available for Sale
Beginning balance	$ (10,914)	$ (1,060)	$ (3,131)	$ (1,955)
Other comprehensive income before reclassifications	(3,148)	15	(10,206)	1,243
Amounts reclassified from accumulated other comprehensive income (loss)		(7)	(51)	(340)
Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act from AOCI			(10,257)
Other comprehensive income (loss)	(3,148)	8	(674)	903
Ending balance	(14,062)	(1,052)	(14,062)	(1,052)
Derivatives
Beginning balance	4,305	(61)	1,381	(426)
Other comprehensive income before reclassifications	625	347	3,547	1,350
Amounts reclassified from accumulated other comprehensive income (loss)	(158)	(183)	(156)	(821)
Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act from AOCI			3,391
Other comprehensive income (loss)	467	164		529
Ending balance	4,772	103	4,772	103
Accumulated Other Comprehensive (Loss) Income
Beginning balance	(6,609)	(1,121)	(1,750)	(2,381)
Other comprehensive income before reclassifications	(2,523)	362	(6,659)	2,593
Amounts reclassified from accumulated other comprehensive income (loss)	(158)	(190)	(207)	(1,161)
Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act from AOCI			(6,866)
Other comprehensive income (loss)	(2,681)	172	(6,866)	1,432
Ending balance	$ (9,290)	$ (949)	$ (9,290)	$ (949)

Other Comprehensive Income (D_3

Other Comprehensive Income (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Realized gain on sale of investment securities		$ 11	$ 68	$ 542
Interest expense derivative deposits	$ (16,719)	(7,233)	(39,896)	(19,466)
Income tax benefit (expense)	(13,928)	(17,409)	(38,735)	(50,109)
Amounts reclassified from accumulated other comprehensive income	(158)	(190)	(207)	(1,161)
Reclassification out of Accumulated Other Comprehensive Income [Member]
Realized gain on sale of investment securities		(11)	(68)	(542)
Interest expense derivative deposits	(211)	(289)	(209)	(1,308)
Income tax benefit (expense)	53	110	70	689
Amounts reclassified from accumulated other comprehensive income	$ (158)	$ (190)	$ (207)	$ (1,161)

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Investment securities	$ 722,674	$ 589,268
Loans held for sale	18,728	25,096
Other equity investments	218	218
Assets measured at a fair value on a recurring basis	747,909	616,663
Liabilities measured at a fair value on a recurring basis	28	10
Interest Rate Swap [Member]
Derivative asset	6,461	2,201
Interest Rate Swap [Member] | Derivative Financial Instruments, Assets [Member]
Derivative asset	6,427	2,256
US Agency Securities [Member]
Investment securities	230,325	195,984
Residential Mortgage Backed Securities [Member]
Investment securities	436,349	317,836
Loans held for sale	18,728	25,096
Municipal Bonds [Member]
Investment securities	47,736	62,057
Corporate Bonds [Member]
Investment securities	8,046	13,173
Mortgage Banking Derivative [Member]
Derivative asset	80	43
Derivative liability	28	10
Fair Value, Inputs, Level 2 [Member]
Investment securities	720,956	587,550
Loans held for sale	18,728	25,096
Assets measured at a fair value on a recurring basis	746,111	614,902
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]
Derivative asset	6,427	2,256
Fair Value, Inputs, Level 2 [Member] | US Agency Securities [Member]
Investment securities	230,325	195,984
Fair Value, Inputs, Level 2 [Member] | Residential Mortgage Backed Securities [Member]
Investment securities	436,349	317,836
Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member]
Investment securities	47,736	62,057
Fair Value, Inputs, Level 2 [Member] | Corporate Bonds [Member]
Investment securities	6,546	11,673
Fair Value, Inputs, Level 3 [Member]
Investment securities	1,718
Other equity investments	218	218
Assets measured at a fair value on a recurring basis	1,798	1,761
Liabilities measured at a fair value on a recurring basis	28	10
Fair Value, Inputs, Level 3 [Member] | Corporate Bonds [Member]
Investment securities	1,500	1,500
Fair Value, Inputs, Level 3 [Member] | Mortgage Banking Derivative [Member]
Derivative asset	$ 80	$ 43

Fair Value Measurements (Deta_2

Fair Value Measurements (Details 1) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Loans held for sale	$ 18,728	$ 25,096
Residential Mortgage Backed Securities [Member]
Loans held for sale	18,728	25,096
Aggregate Unpaid Principal Balance	18,488	24,674
Difference	$ 240	$ 422

Fair Value Measurements (Deta_3

Fair Value Measurements (Details 2) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Assets - Beginning balance	$ 1,761	$ 1,832
Realized gain included in earnings - net mortgage banking derivatives	37	(71)
Assets - Ending balance	1,798	1,761
Liabilities - Beginning balance	10	55
Realized loss included in earnings - net mortgage banking derivatives	18	(45)
Liabilities - Ending balance	28	10
Investment Securities [Member]
Assets - Beginning balance	1,718	1,718
Assets - Ending balance	1,718	1,718
Mortgage Banking Derivatives [Member]
Assets - Beginning balance	43	114
Realized gain included in earnings - net mortgage banking derivatives	37	(71)
Assets - Ending balance	80	43
Liabilities - Beginning balance	10	55
Realized loss included in earnings - net mortgage banking derivatives	18	(45)
Liabilities - Ending balance	$ 28	$ 10

Fair Value Measurements (Deta_4

Fair Value Measurements (Details 3) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Other real estate owned	$ 1,394	$ 1,394
Total assets measured at fair value on a nonrecurring basis	24,147	19,370
Commercial [Member]
Impaired loans	6,200	2,266
Income Producing - Commercial Real Estate [Member]
Impaired loans	6,217	7,664
Owner Occupied - Commercial Real Estate - [Member]
Impaired loans	5,261	5,214
Real Estate Mortgage - Residential [Member]
Impaired loans	1,522	775
Construction - Commercial And Residential [Member]
Impaired loans	3,030	1,552
Home Equity [Member]
Impaired loans	487	494
Other Consumer [Member]
Impaired loans	36	11
Fair Value, Inputs, Level 3 [Member]
Other real estate owned	1,394	1,394
Total assets measured at fair value on a nonrecurring basis	24,147	19,370
Fair Value, Inputs, Level 3 [Member] | Commercial [Member]
Impaired loans	6,200	2,266
Fair Value, Inputs, Level 3 [Member] | Income Producing - Commercial Real Estate [Member]
Impaired loans	6,217	7,664
Fair Value, Inputs, Level 3 [Member] | Owner Occupied - Commercial Real Estate - [Member]
Impaired loans	5,261	5,214
Fair Value, Inputs, Level 3 [Member] | Real Estate Mortgage - Residential [Member]
Impaired loans	1,522	775
Fair Value, Inputs, Level 3 [Member] | Construction - Commercial And Residential [Member]
Impaired loans	3,030	1,552
Fair Value, Inputs, Level 3 [Member] | Home Equity [Member]
Impaired loans	487	494
Fair Value, Inputs, Level 3 [Member] | Other Consumer [Member]
Impaired loans	$ 36	$ 11

Fair Value Measurements (Deta_5

Fair Value Measurements (Details 4) - USD ($) $ in Thousands	Sep. 30, 2018		Dec. 31, 2017
Federal funds sold	$ 17,284		$ 15,767
Interest bearing deposits with other banks	162,734		167,261
Investment securities	722,674		589,268
Loans held for sale	18,728		25,096
Bank owned life insurance	73,007		60,947
Interest bearing deposits	459,455		420,417
Interest Rate Swap [Member]
Derivative asset	6,461		2,201
Fair Value, Inputs, Level 2 [Member]
Cash and due from banks	4,459		7,445
Federal funds sold	17,284		15,767
Interest bearing deposits with other banks	162,734		167,261
Investment securities	720,956		587,550
Federal Reserve and Federal Home Loan Bank stock	37,257		36,324
Loans held for sale	18,728		25,096
Bank owned life insurance	73,007		60,947
Annuity investment	12,375		11,632
Noninterest bearing deposits	2,057,886		1,982,912
Interest bearing deposits	3,032,713		3,041,563
Certificates of deposit	1,279,407		829,886
Customer repurchase agreements	36,446		76,561
Borrowings	533,304		533,162
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]
Derivative asset	6,427		2,256
Fair Value, Inputs, Level 3 [Member]
Investment securities	1,718
Loans, net	6,713,861	[1]	6,381,213	[2]
Fair Value, Inputs, Level 3 [Member] | Mortgage Banking Derivative [Member]
Derivative asset	80		43
Derivative liability	28		10
Carrying Value [Member]
Cash and due from banks	4,459		7,445
Federal funds sold	17,284		15,767
Interest bearing deposits with other banks	162,734		167,261
Investment securities	722,674		589,268
Federal Reserve and Federal Home Loan Bank stock	37,257		36,324
Loans held for sale	18,728		25,096
Loans, net	6,776,483	[1]	6,346,770	[2]
Bank owned life insurance	73,007		60,947
Annuity investment	12,375		11,632
Noninterest bearing deposits	2,057,886		1,982,912
Interest bearing deposits	3,032,713		3,041,563
Certificates of deposit	1,281,706		829,509
Customer repurchase agreements	36,446		76,561
Borrowings	542,198		541,905
Carrying Value [Member] | Interest Rate Swap [Member]
Derivative asset	80		2,256
Carrying Value [Member] | Mortgage Banking Derivative [Member]
Derivative asset	80		43
Derivative liability	28		10
Fair Value [Member]
Cash and due from banks	4,459		7,445
Federal funds sold	17,284		15,767
Interest bearing deposits with other banks	162,734		167,261
Investment securities	722,674		589,268
Federal Reserve and Federal Home Loan Bank stock	37,257		36,324
Loans held for sale	18,728		25,096
Loans, net	6,713,861	[1]	6,381,213	[2]
Bank owned life insurance	73,007		60,947
Annuity investment	12,375		11,632
Noninterest bearing deposits	2,057,886		1,982,912
Interest bearing deposits	3,032,713		3,041,563
Certificates of deposit	1,279,407		829,886
Customer repurchase agreements	36,446		76,561
Borrowings	533,304		533,162
Fair Value [Member] | Interest Rate Swap [Member]
Derivative asset	6,427		2,256
Fair Value [Member] | Mortgage Banking Derivative [Member]
Derivative asset	6,427		43
Derivative liability	$ 28		$ 10
[1]	Carrying amount is net of unearned income and the allowance for credit losses. In accordance with the prospective adoption of ASU No. 2016-01, the fair value of loans was measured using an exit price notion.
[2]	Carrying amount is net of unearned income and the allowance for credit losses. The fair value of loans was measured using an entry price notion.

Supplemental Executive Retire_2

Supplemental Executive Retirement Plan (Details Narrative) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)Number	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)Number	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2013USD ($)
Defined benefit plan, net periodic benefit cost	$ 100	$ 103	$ 586	$ 308
Supplemental Executive Retirement and Death Benefit Agreements [Member]
Time period for calculating base salary under SERP agreements			5 years
Retirement age | Number	67		67
Share-based compensation arrangement by share-based payment award, award vesting period			6 years
Retirement plan monthly instalments | Number	180		180
Purchased Fixed Annuity for Financing Retirement Benefits [Member] | Supplemental Executive Retirement and Death Benefit Agreements [Member]
Other investments						$ 11,400
Annual fee on annuity contracts	$ 56
Annuity contracts accrued income	54
Purchased Fixed Annuity for Financing Retirement Benefits [Member] | Supplemental Executive Retirement and Death Benefit Agreements [Member] | Other Assets [Member]
Cash surrender value of life insurance	$ 12,400		$ 12,400		$ 11,600