MVB Financial (MVBF) 10-Q 30 Jul 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 29, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	MVB FINANCIAL CORP
Entity Central Index Key	1,277,902
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		11,337,625

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Cash and cash equivalents:
Cash and due from banks	$ 20,316	$ 16,345
Interest bearing balances with banks	3,634	3,960
Total cash and cash equivalents	23,950	20,305
Certificates of deposit with other banks	14,778	14,778
Investment Securities:
Securities available-for-sale	222,085	231,507
Equity securities	6,969	0
Loans held for sale	98,799	66,794
Loans:	1,215,072	1,105,941
Less: Allowance for loan losses	(10,651)	(9,878)
Net Loans	1,204,421	1,096,063
Premises and equipment	26,418	26,686
Bank owned life insurance	33,104	32,666
Accrued interest receivable and other assets	36,415	27,023
Goodwill	18,480	18,480
TOTAL ASSETS	1,685,419	1,534,302
Deposits:
Noninterest bearing	163,986	125,963
Interest bearing	1,031,882	1,033,617
Total deposits	1,195,868	1,159,580
Accrued interest payable and other liabilities	15,890	16,434
Repurchase agreements	20,240	22,403
FHLB and other borrowings	266,830	152,169
Subordinated debt	20,796	33,524
Total liabilities	1,519,624	1,384,110
STOCKHOLDERS’ EQUITY
Preferred stock, par value $1,000; 20,000 authorized; 783 issued in 2018 and 2017, respectively (See Footnote 7)	7,834	7,834
Common stock, par value $1; 20,000,000 shares authorized; 11,388,702 shares issued and 11,337,625 shares outstanding in 2018 and 10,495,704 shares issued and 10,444,627 shares outstanding in 2017	11,389	10,496
Additional paid-in capital	112,321	98,698
Retained earnings	42,636	37,236
Accumulated other comprehensive loss	(7,301)	(2,988)
Treasury stock, 51,077 shares, at cost	(1,084)	(1,084)
Total stockholders’ equity	165,795	150,192
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 1,685,419	$ 1,534,302

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 1,000	$ 1,000
Preferred stock, shares authorized	20,000	20,000
Preferred stock, shares issued	783	783
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	11,388,702	10,495,704
Common stock, shares outstanding	11,337,625	10,444,627
Treasury stock, shares	51,077	51,077

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
INTEREST INCOME
Interest and fees on loans	$ 15,122	$ 12,538	$ 28,413	$ 24,420
Interest on deposits with other banks	91	82	181	161
Interest on investment securities - taxable	891	645	1,786	1,191
Interest on tax exempt loans and securities	840	549	1,618	1,110
Total interest income	16,944	13,814	31,998	26,882
INTEREST EXPENSE
Interest on deposits	2,530	1,963	4,828	3,869
Interest on repurchase agreements	20	19	39	36
Interest on FHLB and other borrowings	1,197	380	1,911	668
Interest on subordinated debt	542	558	1,100	1,109
Total interest expense	4,289	2,920	7,878	5,682
NET INTEREST INCOME	12,655	10,894	24,120	21,200
Provision for loan losses	605	523	1,079	1,041
Net interest income after provision for loan losses	12,050	10,371	23,041	20,159
NONINTEREST INCOME
Service charges on deposit accounts	281	165	466	352
Income on bank owned life insurance	220	155	438	302
Interchange and debit card transaction fees	142	318	292	613
Mortgage fee income	9,063	8,952	15,626	18,586
Gain on sale of portfolio loans	0	203	212	212
Insurance and investment services income	177	124	341	248
Gain on sale of securities, net	0	167	326	350
Gain (loss) on derivatives, net	653	1,037	1,237	(910)
Commercial swap fee income	0	270	413	270
Other operating income	259	176	483	368
Total noninterest income	10,795	11,567	19,834	20,391
NONINTEREST EXPENSES
Salary and employee benefits	12,494	11,798	22,967	21,760
Occupancy expense	1,080	1,047	2,129	2,041
Equipment depreciation and maintenance	821	742	1,605	1,431
Data processing and communications	962	1,480	1,797	2,694
Mortgage processing	992	743	1,884	1,637
Marketing, contributions, and sponsorships	348	277	695	604
Professional fees	788	736	1,533	1,413
Printing, postage, and supplies	234	246	399	463
Insurance, tax, and assessment expense	456	467	846	928
Travel, entertainment, dues, and subscriptions	631	558	1,279	1,059
Other operating expenses	443	409	854	790
Total noninterest expense	19,249	18,503	35,988	34,820
Income before income taxes	3,596	3,435	6,887	5,730
Income tax expense	765	1,175	1,462	1,896
Net income	2,831	2,260	5,425	3,834
Preferred dividends	122	122	243	251
Net income available to common shareholders - basic	$ 2,709	$ 2,138	$ 5,182	$ 3,583
Earnings per share from continuing operations - basic (in dollars per share)	$ 0.25	$ 0.21	$ 0.49	$ 0.35
Earnings per share from continuing operations - diluted (in dollars per share)	0.25	0.20	0.47	0.35
Cash dividends declared (in dollars per share)	$ 0.025	$ 0.025	$ 0.050	$ 0.050
Weighted average shares outstanding - basic (in shares)	10,634,805	10,343,933	10,554,916	10,171,198
Weighted average shares outstanding - diluted (in shares)	11,502,148	12,181,433	10,941,671	10,172,254

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net Income	$ 2,831	$ 2,260	$ 5,425	$ 3,834
Other comprehensive income (loss):
Unrealized holding gains (losses) on securities available-for-sale	(887)	2,549	(5,336)	2,997
Income tax effect	239	(1,019)	1,441	(1,198)
Reclassification adjustment for gain recognized in income	0	(167)	(326)	(350)
Income tax effect	0	67	88	140
Change in defined benefit pension plan	772	(500)	772	(336)
Income tax effect	(208)	200	(208)	134
Total other comprehensive income (loss)	(84)	1,130	(3,569)	1,387
Comprehensive income (loss)	$ 2,747	$ 3,390	$ 1,856	$ 5,221

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive (Loss)	Treasury Stock
Beginning balance at Dec. 31, 2016	$ 145,625	$ 16,334	$ 10,048	$ 93,412	$ 31,192	$ (4,277)	$ (1,084)
Increase (Decrease) in Stockholders' Equity
Net Income	3,834				3,834
Other comprehensive loss	1,387					1,387
Cash dividends paid	(511)				(511)
Dividends on preferred stock	(251)				(251)
Common stock issuance, net of issuance costs	4,931		444	4,487
Stock based compensation	327			327
Common stock options exercised	(8)		2	(10)
Redemption of preferred stock	(8,500)	(8,500)
Ending balance at Jun. 30, 2017	146,834	7,834	10,494	98,216	34,264	(2,890)	(1,084)
Beginning balance at Mar. 31, 2017						(4,020)
Increase (Decrease) in Stockholders' Equity
Net Income	2,260
Other comprehensive loss	1,130					1,130
Ending balance at Jun. 30, 2017	146,834	7,834	10,494	98,216	34,264	(2,890)	(1,084)
Increase (Decrease) in Stockholders' Equity
Mark to market on equity positions	0				98	(98)
Beginning balance at Dec. 31, 2017	150,192	7,834	10,496	98,698	37,236	(2,988)	(1,084)
Increase (Decrease) in Stockholders' Equity
Net Income	5,425				5,425
Other comprehensive loss	(3,569)					(3,569)
Cash dividends paid	(526)				(526)
Dividends on preferred stock	(243)				(243)
Stock based compensation	526			526
Common stock options exercised	1,297		97	1,200
Stranded AOCI	0				646	(646)
Common stock issued from subordinated debt conversion, net of costs	12,693		796	11,897
Ending balance at Jun. 30, 2018	165,795	7,834	11,389	112,321	42,636	(7,301)	(1,084)
Beginning balance at Mar. 31, 2018						(7,217)
Increase (Decrease) in Stockholders' Equity
Net Income	2,831
Other comprehensive loss	(84)					(84)
Ending balance at Jun. 30, 2018	$ 165,795	$ 7,834	$ 11,389	$ 112,321	$ 42,636	$ (7,301)	$ (1,084)

Consolidated Statements of Cha7

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Statement of Stockholders' Equity [Abstract]
Cash dividends paid (in dollars per share)	$ 0.05	$ 0.05

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
OPERATING ACTIVITIES
Net Income	$ 5,425	$ 3,834
Adjustments to reconcile net income to net cash provided by operating activities:
Net amortization and accretion of investments	694	620
Net amortization of deferred loan costs	(14)	54
Provision for loan losses	1,079	1,041
Depreciation and amortization	1,483	1,292
Stock based compensation	526	327
Loans originated for sale	(619,884)	(702,136)
Proceeds of loans sold	603,505	703,071
Mortgage fee income	(15,626)	(18,586)
Gain on sale of securities	(326)	(716)
Loss on sale of securities	0	366
Gain on sale of portfolio loans	(212)	(212)
Income on bank owned life insurance	(438)	(302)
Deferred taxes	(118)	178
Other, net	(2,859)	(5,008)
Net cash used in operating activities	(26,765)	(16,177)
INVESTING ACTIVITIES
Purchases of investment securities available-for-sale	(15,981)	(51,026)
Maturities/paydowns of investment securities available-for-sale	11,685	7,587
Sales of investment securities available-for-sale	680	33,075
Purchases of premises and equipment	(1,163)	(3,619)
Net increase in loans	(109,209)	(49,749)
Purchases of restricted bank stock	(13,315)	(12,257)
Redemptions of restricted bank stock	8,074	8,932
Proceeds from sale of certificates of deposit with banks	0	1,733
Purchases of certificates of deposit with banks	0	(1,733)
Proceeds from sale of other real estate owned	360	0
Purchase of bank owned life insurance	0	(50)
Net cash used in investing activities	(118,869)	(67,107)
FINANCING ACTIVITIES
Net increase (decrease) in deposits	36,288	(7,409)
Net decrease in repurchase agreements	(2,163)	(2,966)
Net change in short-term FHLB borrowings	76,900	72,357
Principal payments on FHLB borrowings	(12,239)	(576)
Proceeds from new FHLB borrowings	50,000	26,682
Repayments of Convertible Debt	(35)	0
Proceeds from stock offering	0	4,931
Preferred stock redemption	0	(8,500)
Common stock options exercised	1,297	(8)
Cash dividends paid on common stock	(526)	(511)
Cash dividends paid on preferred stock	(243)	(251)
Net cash provided by financing activities	149,279	83,749
Increase in cash and cash equivalents	3,645	465
Cash and cash equivalents at beginning of period	20,305	17,340
Cash and cash equivalents at end of period	23,950	17,805
Supplemental disclosure of cash flow information:
Loans transferred to other real estate owned	720	709
Cashless stock options exercised	93	2
Common stock converted from subordinated debt	13	0
Cash payments for:
Interest on deposits, repurchase agreements and borrowings	7,833	5,895
Income taxes	$ 87	$ 4,977

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Significant Accounting Policies	Note 1 – Summary of Significant Accounting Policies Nature of Operations MVB Financial Corp. (“the Company”) is a financial holding company and was organized in 2003. MVB operates principally through its wholly-owned subsidiary, MVB Bank, Inc. (“MVB Bank”). MVB Bank’s operating subsidiaries include MVB Mortgage, MVB Insurance, LLC (“MVB Insurance”), and MVB Community Development Corporation (“CDC”). Principles of Consolidation and Basis of Presentation These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with instructions to Form 10‑Q. Accordingly, they do not include all the information and footnotes required by GAAP for annual year-end financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal, recurring nature. The consolidated balance sheet as of December 31, 2017 has been derived from audited financial statements included in the Company’s 2017 filing on Form 10-K. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 . The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States and practices in the banking industry. The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Estimates, such as the allowance for loan losses, are based upon known facts and circumstances. Estimates are revised by management in the period such facts and circumstances change. Actual results could differ from those estimates. All significant inter-company accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the company’s December 31, 2017 , Form 10-K filed with the Securities and Exchange Commission (the "SEC"). In certain instances, amounts reported in prior periods’ consolidated financial statements have been reclassified to conform to the current presentation. Information is presented in these notes with dollars expressed in thousands, unless otherwise noted or specified.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Note 2 – Recent Accounting Pronouncements In February 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This update requires a reclassification from accumulated other comprehensive income ("AOCI") to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate in the Tax Reform Act, which was enacted on December 22, 2017. The Tax Reform Act included a reduction to the corporate income tax rate from 34 percent to 21 percent effective January 1, 2018. The amendments in the ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company elected to early adopt ASU 2018-02 during the first quarter of 2018 and elected to reclassify the income tax effects of the Tax Reform Act from AOCI to retained earnings. The amount of the reclassification is the difference between the historical corporate income tax rate and the newly enacted 21 percent corporate income tax rate, which amounted to $646 thousand . In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities . This ASU amends guidance on the amortization period of premiums on certain purchased callable debt securities. Specifically, the amendments shorten the amortization period of premiums on certain purchased callable debt securities to the earliest call date. The amendments affect all entities that hold investments in callable debt securities that have an amortized cost basis in excess of the amount that is repayable by the issuer at the earliest call date (that is, at a premium). For public companies, this update will be effective for fiscal years effective for fiscal years beginning after December 15, 2018, including all interim periods within those fiscal years. The adoption of this guidance is not expected to be material to the consolidated financial statements, as it is our current policy to amortize premiums of investment securities to the earliest call date. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . Topic 350, Intangibles – Goodwill and Other (Topic 350), currently requires an entity that has not elected the private company alternative for goodwill to perform a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, an entity compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the entity performs Step 2 and compares the implied fair value of goodwill with the carrying amount of that goodwill for that reporting unit. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeds the implied fair value of that goodwill is recorded, limited to the amount of goodwill allocated to that reporting unit to address concerns over the cost and complexity of the two-step goodwill impairment test, the amendments in this Update remove the second step of the test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. For public companies, this update will be effective for fiscal years effective for fiscal years beginning after December 15, 2019, including all interim periods within those fiscal years. The adoption of this guidance did not have a material impact on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, to improve such definition and, as a result, assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or as business combinations. The definition of a business impacts many areas of accounting including acquisitions, disposals, goodwill, and consolidation. ASU 2017-01 was effective for the Company on January 1, 2018 and is to be applied under a prospective approach. The Company expects the adoption of this new guidance to impact the determination of whether future acquisitions are considered business combinations. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The new guidance replaces the incurred loss impairment methodology in current GAAP with an expected credit loss methodology and requires consideration of a broader range of information to determine credit loss estimates. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. Purchased credit impaired loans will receive an allowance account at the acquisition date that represents a component of the purchase price allocation. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses, with such allowance limited to the amount by which fair value is below amortized cost. The guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company's project management team and Management Loan Committee ("MLC") engaged a third party to assist with a data gap analysis and will utilize the data to determine the impact of the pronouncement. Additionally, the Company has researched and acquired software to assist with implementation that will be tested throughout 2018. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . Among other things, in the amendments in ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date:(1) A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company established a project management team, which is currently evaluating the impact of the new standard, and expects an increase to the Consolidated Balance Sheets for right-of-use assets and associated lease liabilities, as well as resulting depreciation expense of the right-of-use assets and interest expense of the lease liabilities in the Consolidated Statements of Income, for arrangements previously accounted for as operating leases. In January 2016, the FASB issued ASU 2016-01, Accounting for Financial Instruments - Overall: Classification and Measurement (Subtopic 825-10) . Amendments within ASU 2016-01 that relate to non-public entities have been excluded from this presentation. The amendments in this ASU 2016-01 address the following: 1) require equity investments to be measured at fair value with changes in fair value recognized in net income; 2) simplify the impairment assessment of equity investments without readily-determinable fair values by requiring a qualitative assessment to identify impairment; 3) eliminate the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; 4) require entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; 5) require separate presentation in other comprehensive income for the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; 6) require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and 7) clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company adopted this guidance in the first quarter of 2018. The adoption of ASU 2016-01 on January 1, 2018 did not have a material impact on the Company's Consolidated Financial Statements. In accordance with (5) above, the Company measured the fair value of its loan portfolio as of March 31, 2018 using an exit price notion. See Note 6 "Fair Value of Financial Instruments" of the Notes to Consolidated Financial Statements for further information. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The new revenue pronouncement creates a single source of revenue guidance for all companies in all industries and is more principles-based than current revenue guidance. The pronouncement provides a five-step model for a company to recognize revenue when it transfers control of goods or services to customers at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. The five steps are: (1) identify the contract with the customer, (2) identify the separate performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the separate performance obligations and (5) recognize revenue when each performance obligation is satisfied. The Company evaluated the impact of this standard on individual customer contracts, while management evaluated the impact of this standard on the broad categories of its customer contracts and revenue streams. The Company determined that this standard did not have a material impact on its consolidated financial statements because revenue related to financial instruments, including loans and investment securities are not in scope of these updates. Loan interest income, investment interest income, insurance services revenue and BOLI are accounted for under other U.S. GAAP standards and out of scope of ASC 606 revenue standard. The Company evaluated the impact of this standard on individual customer contracts, while management evaluated the impact of this standard on the broad categories of its customer contracts and revenue streams. The Company adopted the revenue recognition standard as of January 1, 2018 and it did not have a material effect on the consolidated financial statements. See Note 1 "Summary of Significant Policies" of the Notes to the Consolidated Financial Statements for further information.

Investment Securities

Investment Securities	6 Months Ended
	Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Investment Securities	Note 3 – Investment Securities There were no held-to-maturity securities at June 30, 2018 or December 31, 2017 . Amortized cost and fair values of investment securities available-for-sale at June 30, 2018 are summarized as follows: (Dollars in thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value U. S. Agency securities $ 81,180 $ 4 $ (2,284 ) $ 78,900 U.S. Sponsored Mortgage-backed securities 56,342 — (2,616 ) 53,726 Municipal securities 80,970 678 (1,607 ) 80,041 Total debt securities 218,492 682 (6,507 ) 212,667 Other securities 9,394 76 (52 ) 9,418 Total investment securities available-for-sale $ 227,886 $ 758 $ (6,559 ) $ 222,085 Amortized cost and fair values of investment securities available-for-sale at December 31, 2017 are summarized as follows: (Dollars in thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value U. S. Agency securities $ 81,705 $ 81 $ (841 ) $ 80,945 U.S. Sponsored Mortgage-backed securities 59,387 31 (1,264 ) 58,154 Municipal securities 74,482 1,733 (373 ) 75,842 Total debt securities 215,574 1,845 (2,478 ) 214,941 Equity and other securities 15,940 644 (18 ) 16,566 Total investment securities available-for-sale $ 231,514 $ 2,489 $ (2,496 ) $ 231,507 The following table summarizes amortized cost and fair values of debt securities by maturity: June 30, 2018 Available for sale (Dollars in thousands) Amortized Cost Fair Value Within one year $ 525 $ 528 After one year, but within five 48,810 47,901 After five years, but within ten 23,140 22,150 After ten years 146,017 142,088 Total $ 218,492 $ 212,667 Investment securities with a carrying value of $69.2 million at June 30, 2018 , were pledged to secure public funds, repurchase agreements, and potential borrowings at the Federal Reserve discount window. The Company’s investment portfolio includes securities that are in an unrealized loss position as of June 30, 2018 , the details of which are included in the following table. Although these securities, if sold at June 30, 2018 would result in a pretax loss of $6.6 million , the Company has no intent to sell the applicable securities at such fair values, and maintains the Company has the ability to hold these securities until all principal has been recovered. Management does not intend to sell these securities and it is unlikely that the Company will be required to sell these securities before recovery of their amortized cost basis. Declines in the fair values of these securities can be traced to general market conditions which reflect the prospect for the economy as a whole. When determining other-than-temporary impairment on securities, the Company considers such factors as adverse conditions specifically related to a certain security or to specific conditions in an industry or geographic area, the time frame securities have been in an unrealized loss position, the Company’s ability to hold the security for a period of time sufficient to allow for anticipated recovery in value, whether or not the security has been downgraded by a rating agency, and whether or not the financial condition of the security issuer has severely deteriorated. As of June 30, 2018 , the Company considers all securities with unrealized loss positions to be temporarily impaired, and consequently, does not believe the Company will sustain any material realized losses as a result of the current temporary decline in fair value. The following table discloses investments in an unrealized loss position at June 30, 2018 : (Dollars in thousands) Less than 12 months 12 months or more Description and number of positions Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Agency securities (54) $ 59,528 $ (1,570 ) $ 16,626 $ (714 ) U.S. Sponsored Mortgage-backed securities (42) 17,490 (555 ) 36,236 (2,061 ) Municipal securities (86) 27,811 (703 ) 17,588 (904 ) Other securities (3) $ 2,493 $ (52 ) $ — $ — $ 107,322 $ (2,880 ) $ 70,450 $ (3,679 ) The following table discloses investments in an unrealized loss position at December 31, 2017 : (Dollars in thousands) Less than 12 months 12 months or more Description and number of positions Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Agency securities (45) $ 61,834 $ (659 ) $ 7,709 $ (182 ) U.S. Sponsored Mortgage-backed securities (39) 16,825 (159 ) 37,427 (1,105 ) Municipal securities (47) 8,826 (48 ) 16,781 (325 ) Equity and other securities (2) 1,034 (18 ) — — $ 88,519 $ (884 ) $ 61,917 $ (1,612 ) For the three -month periods ended June 30, 2018 and 2017 , the Company sold investments available-for-sale of $0 and $10.1 million , respectively. These sales resulted in gross gains of $0 and $167 thousand and gross losses of $0 and $0 , respectively. For the six -month periods ended June 30, 2018 and 2017 , the Company sold investments available-for-sale of $680 thousand and $33.1 million , respectively. These sales resulted in gross gains of $326 thousand and $716 thousand and gross losses of $0 and $366 thousand , respectively. For the three and six months ended June 30, 2018 , the Company recognized an unrealized loss of $11 thousand and $40 thousand , respectively, on equity securities held as of June 30, 2018 , which was recorded in noninterest income in the consolidated statements of income.

Loans and Allowance for Loan Lo

Loans and Allowance for Loan Losses	6 Months Ended
	Jun. 30, 2018
Receivables [Abstract]
Loans and Allowance for Loan Losses	Note 4 – Loans and Allowance for Loan Losses The components of loans in the Consolidated Balance Sheet at June 30, 2018 and December 31, 2017 , were as follows: (Dollars in thousands) June 30, 2018 December 31, 2017 Commercial and Non-Residential Real Estate $ 884,067 $ 783,909 Residential Real Estate 260,842 246,214 Home Equity 58,399 62,400 Consumer 11,380 12,783 Total Loans $ 1,214,688 $ 1,105,306 Deferred loan origination fees and costs, net 384 635 Loans receivable $ 1,215,072 $ 1,105,941 All loan origination fees and direct loan origination costs are deferred and recognized over the life of the loan. An allowance for loan losses ("ALL") is maintained to absorb losses from the loan portfolio. The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of non-performing loans. The Bank’s methodology for determining the ALL is based on the requirements of ASC Section 310-10-35 for loans individually evaluated for impairment (discussed above) and ASC Subtopic 450-20 for loans collectively evaluated for impairment, as well as the Interagency Policy Statements on the Allowance for Loan and Lease Losses and other bank regulatory guidance. The total of the two components represents the Bank’s ALL. The Bank's methodology allows for the analysis of certain impaired loans in homogeneous pools, rather than on an individual basis, when those loans are below specific thresholds based on outstanding principal balance. More specifically, residential mortgage loans, home equity lines of credit, and consumer loans, when considered impaired, are evaluated collectively for impairment by applying allocation rates derived from the Bank’s historical losses specific to impaired loans. Total collectively evaluated impaired loans were $1.9 million and $1.3 million , while the related reserves were $201 thousand and $169 thousand as of June 30, 2018 and December 31, 2017 . Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. For general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are modified by qualified factors. The segments described below in the impaired loans by class table, which are based on the Federal call code assigned to each loan, provide the starting point for the ALL analysis. Company and bank management tracks the historical net charge-off activity at the call code level. A historical charge-off factor is calculated utilizing a defined number of consecutive historical quarters. All pools currently utilize a rolling 12 quarters. “Pass” rated credits are segregated from “Criticized” credits for the application of qualitative factors. Loans in the criticized pools, which possess certain qualities or characteristics that may lead to collection and loss issues, are closely monitored by management and subject to additional qualitative factors. Company and Bank management have identified a number of additional qualitative factors which it uses to supplement the historical charge-off factor because these factors are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience. The additional factors that are evaluated quarterly and updated using information obtained from internal, regulatory, and governmental sources are: lending policies and procedures, nature and volume of the portfolio, experience and ability of lending management and staff, volume and severity of problem credits, conclusion of loan reviews, audits, and exams, changes in the value of underlying collateral, effect of concentrations of credit from a loan type, industry and/or geographic standpoint, changes in economic and business conditions consumer sentiment, and other external factors. The combination of historical charge-off and qualitative factors are then weighted for each risk grade. These weightings are determined internally based upon the likelihood of loss as a loan risk grading deteriorates. To estimate the liability for off-balance sheet credit exposures, Bank management analyzed the portfolios of letters of credit, non-revolving lines of credit, and revolving lines of credit, and based its calculation on the expectation of future advances of each loan category. Letters of credit were determined to be highly unlikely to advance since they are generally in place only to ensure various forms of performance of the borrowers. In the Bank’s history, there have been no letters of credit drawn upon. In addition, many of the letters of credit are cash secured and do not warrant an allocation. Non-revolving lines of credit were determined to be highly likely to advance as these are typically construction lines. Meanwhile, the likelihood of revolving lines of credit advancing varies with each individual borrower. Therefore, the future usage of each line was estimated based on the average line utilization of the revolving line of credit portfolio as a whole. Once the estimated future advances were calculated, an allocation rate, which was derived from the Bank’s historical losses and qualitative environmental factors, was applied in the similar manner as those used for the allowance for loan loss calculation. The resulting estimated loss allocations were totaled to determine the liability for unfunded commitments related to these loans, which Management considers necessary to anticipate potential losses on those commitments that have a reasonable probability of funding. As of June 30, 2018 and December 31, 2017 , the liability for unfunded commitments related to loans held for investment was $284 thousand . Bank management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL. The ALL is based on estimates, and actual losses will vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the portfolio at any given date. The following tables summarize the primary segments of the ALL, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of June 30, 2018 : (Dollars in thousands) Commercial Residential Home Equity Consumer Total ALL balance at December 31, 2017 $ 7,804 $ 1,119 $ 705 $ 250 $ 9,878 Charge-offs (324 ) (11 ) — (50 ) (385 ) Recoveries 10 9 56 4 79 Provision (recovery) 1,174 55 (159 ) 9 1,079 ALL balance at June 30, 2018 $ 8,664 $ 1,172 $ 602 $ 213 $ 10,651 Individually evaluated for impairment $ 1,049 $ — $ — $ — $ 1,049 Collectively evaluated for impairment $ 7,615 $ 1,172 $ 602 $ 213 $ 9,602 (Dollars in thousands) Commercial Residential Home Equity Consumer Total ALL balance at March 31, 2018 $ 7,998 $ 1,177 $ 693 $ 199 $ 10,067 Charge-offs — — — (29 ) (29 ) Recoveries 8 — — — 8 Provision (recovery) 658 (5 ) (91 ) 43 605 ALL balance at June 30, 2018 $ 8,664 $ 1,172 $ 602 $ 213 $ 10,651 The following table summarizes the primary segments of the Company loan portfolio as of June 30, 2018 : (Dollars in thousands) Commercial Residential Home Equity Consumer Total Individually evaluated for impairment $ 12,072 $ 3,096 $ 39 $ 39 $ 15,246 Collectively evaluated for impairment 871,995 257,746 58,360 11,341 1,199,442 Total Loans $ 884,067 $ 260,842 $ 58,399 $ 11,380 $ 1,214,688 The following tables summarize the primary segments of the ALL, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of June 30, 2017 : (Dollars in thousands) Commercial Residential Home Equity Consumer Total ALL balance at December 31, 2016 $ 7,181 $ 990 $ 728 $ 202 $ 9,101 Charge-offs (263 ) (141 ) (33 ) (16 ) (453 ) Recoveries 21 34 2 2 59 Provision 784 109 80 68 1,041 ALL balance at June 30, 2017 $ 7,723 $ 992 $ 777 $ 256 $ 9,748 Individually evaluated for impairment $ 265 $ 14 $ 36 $ 71 $ 386 Collectively evaluated for impairment $ 7,458 $ 978 $ 741 $ 185 $ 9,362 (Dollars in thousands) Commercial Residential Home Equity Consumer Total ALL balance at March 31, 2017 $ 7,285 $ 1,085 $ 790 $ 212 $ 9,372 Charge-offs (150 ) — — (13 ) (163 ) Recoveries 12 2 1 1 16 Provision (recovery) 576 (95 ) (14 ) 56 523 ALL balance at June 30, 2017 $ 7,723 $ 992 $ 777 $ 256 $ 9,748 The following table summarizes the primary segments of the Company loan portfolio as of June 30, 2017 : (Dollars in thousands) Commercial Residential Home Equity Consumer Total Individually evaluated for impairment $ 9,369 $ 1,051 $ 643 $ 267 $ 11,330 Collectively evaluated for impairment 772,901 241,121 63,679 13,347 1,091,048 Total Loans $ 782,270 $ 242,172 $ 64,322 $ 13,614 $ 1,102,378 Loans are considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company evaluates residential mortgage loans, home equity lines of credit, and consumer loans in homogeneous pools, rather than on an individual basis, when each of those loans are below specific thresholds based on outstanding principal balance. Such loans that individually exceed these thresholds are evaluated individually for impairment. The Chief Credit Officer identifies these loans individually by monitoring the delinquency status of the Bank’s portfolio. Once identified, the Bank’s ongoing communications with the borrower allow Management to evaluate the significance of the payment delays and the circumstances surrounding the loan and the borrower. Once the determination has been made that a loan is impaired, the amount of the impairment is measured using one of three valuation methods: (a) the present value of expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs. The method is selected on a loan-by-loan basis, with management primarily utilizing the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made on a quarterly basis. The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of June 30, 2018 and December 31, 2017 : Impaired Loans with Specific Allowance Impaired Loans with No Specific Allowance Total Impaired Loans (Dollars in thousands) Recorded Investment Related Allowance Recorded Investment Recorded Investment Unpaid Principal Balance June 30, 2018 Commercial Commercial Business $ 3,486 $ 145 $ 681 $ 4,167 $ 4,192 Commercial Real Estate 5,138 905 1,610 6,748 7,560 Acquisition & Development — — 1,157 1,157 3,437 Total Commercial 8,624 1,050 3,448 12,072 15,189 Residential — — 3,096 3,096 3,144 Home Equity — — 39 39 39 Consumer — — 39 39 40 Total Impaired Loans $ 8,624 $ 1,050 $ 6,622 $ 15,246 $ 18,412 December 31, 2017 Commercial Commercial Business $ 3,283 $ 22 $ 979 $ 4,262 $ 4,275 Commercial Real Estate 4,603 1,150 2,814 7,417 7,921 Acquisition & Development — — 2,117 2,117 4,090 Total Commercial 7,886 1,172 5,910 13,796 16,286 Residential — — 1,569 1,569 1,601 Home Equity — — 13 13 13 Consumer 69 16 109 178 475 Total Impaired Loans $ 7,955 $ 1,188 $ 7,601 $ 15,556 $ 18,375 Impaired loans have decreased by $310 thousand , or 2% , during 2018 . This change is the net effect of multiple factors, including the identification of $2.0 million of impaired loans, principal curtailments of $796 thousand , partial charge-offs of $362 thousand , the foreclosure of a commercial development loan which required the reclassification of $720 thousand to other real estate owned, the classification of $293 thousand to performing loans based on improved repayment performance, and normal loan amortization. The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated: Six Months Ended June 30, 2018 Three Months Ended June 30, 2018 (Dollars in thousands) Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Commercial Commercial Business $ 4,329 $ 76 $ 51 $ 4,132 $ 38 $ 51 Commercial Real Estate 7,173 48 22 6,915 24 22 Acquisition & Development 1,520 — — 1,203 — — Total Commercial 13,022 124 73 12,250 62 73 Residential 1,973 10 3 2,200 5 3 Home Equity 79 — — 93 — — Consumer 93 — — 53 — — Total $ 15,167 $ 134 $ 76 $ 14,596 $ 67 $ 76 Six Months Ended June 30, 2017 Three Months Ended June 30, 2017 (Dollars in thousands) Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Commercial Commercial Business $ 3,358 $ 78 $ 59 $ 3,368 $ 34 $ 46 Commercial Real Estate 2,718 50 50 2,632 50 24 Acquisition & Development 3,673 4 6 3,571 4 3 Total Commercial 9,749 132 115 9,571 88 73 Residential 1,336 4 24 1,256 4 7 Home Equity 649 1 1 644 1 — Consumer 163 — — 184 — — Total $ 11,897 $ 137 $ 140 $ 11,655 $ 93 $ 80 As of June 30, 2018 , the Bank's other real estate owned balance totaled $1.8 million . The Bank held eight foreclosed residential real estate properties representing $775 thousand , or 43% , of the total balance of other real estate owned. These properties are held as a result of the foreclosures of primarily two commercial loan relationships, one of which included three properties for a total of $395 thousand , while the other also included three properties for a total of $178 thousand . The two remaining residential real estate properties, totaling $182 thousand , were result of the foreclosure of two unrelated borrowers. The remaining $1.0 million , or 57% , of other real estate owned is the result of the foreclosure of three unrelated commercial development loans. There are four additional consumer mortgage loans collateralized by residential real estate properties in the process of foreclosure. The total recorded investment in these loans was $407 thousand as of June 30, 2018 . These loans are included in the table above and have $0 in specific allowance allocated to them. Bank management uses a nine -point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. Any portion of a loan that has been or is expected to be charged off is placed in the Loss category. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as past due status, bankruptcy, repossession, or death occurs to raise awareness of a possible credit event. The Bank’s Chief Credit Officer is responsible for the timely and accurate risk rating of the loans in the portfolio at origination and on an ongoing basis. The Credit Department ensures that a review of all commercial relationships of one million dollars or greater is performed annually. Review of the appropriate risk grade is included in both the internal and external loan review process, and on an ongoing basis. The Bank has an experienced Credit Department that continually reviews and assesses loans within the portfolio. The Bank engages an external consultant to conduct independent loan reviews on at least an annual basis. Generally, the external consultant reviews larger commercial relationships or criticized relationships. The Bank’s Credit Department compiles detailed reviews, including plans for resolution, on loans classified as Substandard on a quarterly basis. Loans in the Special Mention and Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance. The following table represents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of June 30, 2018 and December 31, 2017 : (Dollars in thousands) Pass Special Mention Substandard Doubtful Total June 30, 2018 Commercial Commercial Business $ 413,053 $ 5,561 $ 4,313 $ — $ 422,927 Commercial Real Estate 323,450 14,515 2,373 4,224 344,562 Acquisition & Development 112,594 987 2,140 857 116,578 Total Commercial 849,097 21,063 8,826 5,081 884,067 Residential 256,375 2,617 1,729 121 260,842 Home Equity 57,564 796 39 — 58,399 Consumer 11,188 178 14 — 11,380 Total Loans $ 1,174,224 $ 24,654 $ 10,608 $ 5,202 $ 1,214,688 December 31, 2017 Commercial Commercial Business $ 371,041 $ 4,816 $ 4,506 $ — $ 380,363 Commercial Real Estate 271,751 22,995 5,961 1,149 301,856 Acquisition & Development 96,712 931 2,230 1,817 101,690 Total Commercial 739,504 28,742 12,697 2,966 783,909 Residential 242,823 3,036 223 132 246,214 Home Equity 61,037 1,311 52 — 62,400 Consumer 12,453 174 25 131 12,783 Total Loans $ 1,055,817 $ 33,263 $ 12,997 $ 3,229 $ 1,105,306 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. A loan that has deteriorated and requires additional collection efforts by the Bank could warrant non-accrual status. A thorough review is presented to the Chief Credit Officer and or the MLC, as required with respect to any loan which is in a collection process and to make a determination as to whether the loan should be placed on non-accrual status. The placement of loans on non-accrual status is subject to applicable regulatory restrictions and guidelines. Generally, loans should be placed in non-accrual status when the loan reaches 90 days past due, when it becomes likely the borrower cannot or will not make scheduled principal or interest payments, when full repayment of principal and interest is not expected, or when the loan displays potential loss characteristics. Normally, all accrued interest is charged off when a loan is placed in non-accrual status, unless Management believes it is likely the accrued interest will be collected. Any payments subsequently received are applied to principal. To remove a loan from non-accrual status, all principal and interest due must be paid up to date and the Bank is reasonably sure of future satisfactory payment performance. Usually, this requires a six -month recent history of payments due. Removal of a loan from non-accrual status will require the approval of the Chief Credit Officer and or MLC. Management is currently monitoring the payment performance of a $3.2 million commercial loan that has been paying slowly in recent months. This loan is classified as a troubled debt restructured loan based on multiple interest only periods being provided in the past. As of June 30, 2018, this loan is matured and as such is reported as past due, despite accrued interest being paid, while the renewal terms are being negotiated. The borrower has continued to work through ongoing litigation, resolution of which is expected in the near future. The following table presents the classes of the loan portfolio summarized by aging categories of performing loans and nonaccrual loans as of June 30, 2018 and December 31, 2017 : (Dollars in thousands) Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Total Loans Non-Accrual 90+ Days Still Accruing June 30, 2018 Commercial Commercial Business $ 419,486 $ 39 $ 3,304 $ 98 $ 3,441 $ 422,927 $ 899 $ — Commercial Real Estate 339,818 28 141 4,575 4,744 344,562 4,638 — Acquisition & Development 115,421 — — 1,157 1,157 116,578 1,157 — Total Commercial 874,725 67 3,445 5,830 9,342 884,067 6,694 — Residential 258,847 25 247 1,723 1,995 260,842 2,696 — Home Equity 58,140 145 114 — 259 58,399 — — Consumer 11,048 313 1 18 332 11,380 29 — Total Loans $ 1,202,760 $ 550 $ 3,807 $ 7,571 $ 11,928 $ 1,214,688 $ 9,419 $ — December 31, 2017 Commercial Commercial Business $ 377,901 $ 512 $ 1,368 $ 582 $ 2,462 $ 380,363 $ 1,027 $ — Commercial Real Estate 300,282 45 1,149 380 1,574 301,856 5,206 — Acquisition & Development 99,573 — 874 1,243 2,117 101,690 2,117 — Total Commercial 777,756 557 3,391 2,205 6,153 783,909 8,350 — Residential 243,177 1,879 707 451 3,037 246,214 1,157 — Home Equity 61,907 240 240 13 493 62,400 13 — Consumer 12,634 11 — 138 149 12,783 179 — Total Loans $ 1,095,474 $ 2,687 $ 4,338 $ 2,807 $ 9,832 $ 1,105,306 $ 9,699 $ — Troubled Debt Restructurings The restructuring of a loan is considered a troubled debt restructuring (“TDR”) if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. At June 30, 2018 and December 31, 2017 , the Bank had specific reserve allocations for TDR’s of $454 thousand and $439 thousand , respectively. Loans considered to be troubled debt restructured loans totaled $6.4 million and $6.4 million as of June 30, 2018 and December 31, 2017 , respectively. Of these totals, $5.8 million and $5.9 million , respectively, represent accruing troubled debt restructured loans and represent 38% and 38% , respectively of total impaired loans. Meanwhile, $432 thousand represents two loans to one borrower that have defaulted under the restructured terms. Both loans are commercial acquisition and development loans that were considered TDR's due to extended interest only periods and/or unsatisfactory repayment structures once transitioned to principal and interest payments. These borrowers have experienced continued financial difficulty and are considered non-performing loans as of June 30, 2018 and December 31, 2017 . There were no previously restructured loans that defaulted during the three months ended June 30, 2018 . A commercial loan in the amount of $144 thousand was classified as a TDR in the second quarter of 2018 . There were two additional loans to one borrower, a home equity line of credit and a consumer loan, totaling $49 thousand , that were classified as TDR's in the second quarter of 2018. These three loans, totaling $193 thousand , represent the only new TDR's for the three months ended June 30, 2018 . There were no new TDR's for the three and six months ended June 30, 2017 . New TDR's 1 Six Months Ended June 30, 2018 Three Months Ended June 30, 2018 (Dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial Commercial Business 2 $ 272 $ 272 1 $ 144 $ 144 Commercial Real Estate — — — — — — Acquisition & Development — — — — — — Total Commercial 2 272 272 1 144 144 Residential — — — — — — Home Equity 1 39 39 1 39 39 Consumer 1 10 10 1 10 10 Total 4 $ 321 $ 321 3 $ 193 $ 193 1 The pre-modification and post-modification balances represent the balances outstanding immediately before and after modification of the loan.

Borrowed Funds

Borrowed Funds	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Borrowed Funds	Note 5 – Borrowed Funds Short-term borrowings Along with traditional deposits, the Bank has access to short-term borrowings from FHLB to fund its operations and investments. Short-term borrowings from FHLB totaled $264.3 million at June 30, 2018 , compared to $149.6 million at December 31, 2017 . Information related to short-term borrowings is summarized as follows: (Dollars in thousands) June 30, 2018 December 31, 2017 Balance at end of period $ 264,297 $ 149,596 Average balance during the period 227,615 100,969 Maximum month-end balance 264,297 220,097 Weighted-average rate during the year 1.90 % 1.16 % Weighted-average rate at end of period 2.10 % 1.61 % Repurchase agreements Along with traditional deposits, the Bank has access to securities sold under agreements to repurchase “repurchase agreements” with customers representing funds deposited by customers, on an overnight basis, that are collateralized by investment securities owned by the Company. Repurchase agreements with customers are included in borrowings section on the consolidated balance sheets. All repurchase agreements are subject to terms and conditions of repurchase/security agreements between the Company and the client and are accounted for as secured borrowings. The Company's repurchase agreements reflected in liabilities consist of customer accounts and securities which are pledged on an individual security basis. The Company monitors the fair value of the underlying securities on a monthly basis. Repurchase agreements are reflected at the amount of cash received in connection with the transaction and included in Securities sold under agreements to repurchase on the consolidated balance sheets. The primary risk with the Company's repurchase agreements is market risk associated with the investments securing the transactions, as we may be required to provide additional collateral based on fair value changes of the underlying investments. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents. All of the Company’s repurchase agreements were overnight agreements at June 30, 2018 and December 31, 2017 . These borrowings were collateralized with investment securities with a carrying value of $20.8 million and $23.1 million at June 30, 2018 and December 31, 2017 , respectively, and were comprised of U.S. Government Agencies and Mortgage backed securities. Declines in the value of the collateral would require the Company to increase the amounts of securities pledged. Repurchase agreements totaled $20.2 million at June 30, 2018 , compared to $22.4 million in December 31, 2017 . Information related to repurchase agreements is summarized as follows: (Dollars in thousands) June 30, 2018 December 31, 2017 Balance at end of period $ 20,240 $ 22,403 Average balance during the period 20,118 25,160 Maximum month-end balance 20,676 25,972 Weighted-average rate during the year 0.38 % 0.30 % Weighted-average rate at end of period 0.39 % 0.34 % Long-term notes from the FHLB were as follows: (Dollars in thousands) June 30, 2018 December 31, 2017 Fixed interest rate notes, originating between October 2006 and April 2007, due between October 2021 and April 2022, interest of between 5.18% and 5.20% payable monthly $ 1,770 $ 1,798 Amortizing fixed interest rate note, originating February 2007, due February 2022, payable in monthly installments of $5 thousand, including interest of 5.22% 763 775 $ 2,533 $ 2,573 Subordinated Debt Information related to subordinated debt is summarized as follows: (Dollars in thousands) June 30, 2018 December 31, 2017 Balance at end of period $ 20,796 $ 33,524 Average balance during the period 32,015 33,524 Maximum month-end balance 33,524 33,524 Weighted-average rate during the year 6.77 % 6.69 % Weighted-average rate at end of period 6.73 % 6.70 % In March 2007 , the Company completed the private placement of $4 million Floating Rate, Trust Preferred Securities through its MVB Financial Statutory Trust I subsidiary (the “Trust”). The Company established the Trust for the sole purpose of issuing the Trust Preferred Securities pursuant to an Amended and Restated Declaration of Trust. The proceeds from the sale of the Trust Preferred Securities will be loaned to the Company under subordinated Debentures (the “Debentures”) issued to the Trust pursuant to an Indenture. The Debentures are the only asset of the Trust. The Trust Preferred Securities have been issued to a pooling vehicle that will use the distributions on the Trust Preferred Securities to securitize note obligations. The securities issued by the Trust are includable for regulatory purposes as a component of the Company’s Tier 1 capital. The Trust Preferred Securities and the Debentures mature in 2037 and have been redeemable by the Company since 2012 . Interest payments are due in March, June, September, and December and are adjusted at the interest due dates at a rate of 1.62% over the three-month LIBOR Rate. The obligations of the Company with respect to the issuance of the trust preferred securities constitute a full and unconditional guarantee by the Company of the Trust's obligations with respect to the trust preferred securities to the extent set forth in the related guarantees. On June 30, 2014 , the Company issued its Convertible Subordinated Promissory Notes Due 2024 (the “Notes”) to various investors in the aggregate principal amount of $29,400,000 . The Notes were issued in $100,000 increments per Note subject to a minimum investment of $1,000,000 . The Notes expire 10 years after the initial issuance date of the Notes (the “Maturity Date”). Interest on the Notes accrues on the unpaid principal amount of each Note (paid quarterly in arrears on January 1, April 1, July 1, and October 1 of each year) which rate shall be dependent upon the principal invested in the Notes and the holder’s ownership of common stock in the Company. For investments of less than $3,000,000 in Notes, an ownership of Company common stock representing at least 30% of the principal of the Notes acquired, the interest rate on the Notes is 7% per annum. For investments of $3,000,000 or greater in Notes and ownership of the Company’s common stock representing at least 30% of the principal of the Notes acquired, the interest rate on the Notes is 7.5% per annum. For investments of $10,000,000 or greater, the interest rate on the Notes is 7% per annum, regardless of whether the holder owns or acquires MVB common stock. The principal on the Notes shall be paid in full at the Maturity Date. On the fifth anniversary of the issuance of the Notes, a holder may elect to continue to receive the stated fixed rate on the Notes or a floating rate determined by LIBOR plus 5% up to a maximum rate of 9% , adjusted quarterly. The Notes are unsecured and subject to the terms and conditions of any senior debt and after consultation with the Board of Governors of the Federal Reserve System, the Company may, after the Notes have been outstanding for five years , and without premium or penalty, prepay all or a portion of the unpaid principal amount of any Note together with the unpaid interest accrued on such portion of the principal amount of such Note. All such prepayments shall be made pro rata among the holders of all outstanding Notes. At the election of a holder, any or all of the Notes may be converted into shares of common stock during the 30 -day period after the first, second, third, fourth, and fifth anniversaries of the issuance of the Notes or upon a notice to prepay by the Company. On December 28, 2017, the Company distributed notices to the holders of the Notes that provide that the Company has elected to waive the timing requirements associated with when a conversion may occur and, instead, the Company will accept notices of conversion at any time prior to July 1, 2019, which is the final conversion date for the Notes. The Notes will convert into common stock based on $16 per share of the Company’s common stock. The conversion price will be subject to anti-dilution adjustments for certain events such as stock splits, reclassifications, non-cash distributions, extraordinary cash dividends, pro rata repurchases of common stock, and business combination transactions. The Company must give 20 days ’ notice to the holders of the Company’s intent to prepay the Notes, so that holders may execute the conversion right set forth above if a holder so desires. Repayment of the Notes is subordinated to the Company’s outstanding senior debt including (if any) without limitation, senior secured loans. No payment will be made by the Company, directly or indirectly, on the Notes, unless and until all of the senior debt then due has been paid in full. Notwithstanding the foregoing, so long as there exists no event of default under any senior debt, the Company would make, and a holder would receive and retain for the holder’s account, regularly scheduled payments of accrued interest and principal pursuant to the terms of the Notes. The Company must obtain a consent of the holders of the Notes prior to issuing any new senior debt in excess of $15,000,000 after the date of issuance of the Notes and prior to the Maturity Date. An event of default will occur upon the Company’s bankruptcy or any failure to pay interest, principal, or other amounts owing on the Notes when due. Upon the occurrence and during the continuance of an event of default (but subject to the subordination provisions of the Notes) the holders of a majority of the outstanding principal amount of the Notes may declare all or any portion of the outstanding principal amount of the Notes due and payable and demand immediate payment of such amount. The Notes are redeemable, in whole or in part, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed on any interest payment date after a date five years from the original issue date. In June 2018, subordinated debt in the amount of $12.7 million was converted into 795,500 shares of common stock. The Company reflects subordinated debt in the amount of $20.8 million and $33.5 million as of June 30, 2018 and December 31, 2017 and interest expense of $542 thousand and $558 thousand for the six months ended June 30, 2018 and 2017 . A summary of maturities of borrowings and subordinated debt over the next five years is as follows (dollars in thousands): Year Amount 2018 264,338 2019 85 2020 90 2021 886 2022 1,431 Thereafter 20,796 $ 287,626

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Note 6 – Fair Value of Financial Instruments Accounting standards require that the Company adopt fair value measurement for financial assets and financial liabilities. This enhanced guidance for using fair value to measure assets and liabilities applies whenever other standards require or permit assets or liabilities to be measured at fair value. This guidance does not expand the use of fair value in any new circumstances. Accounting standards establish a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring assets and liabilities at fair value. The three broad levels defined by these standards are as follows: Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level II: Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. Level III: Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. The methods of determining the fair value of assets and liabilities presented in this footnote are consistent with our methodologies disclosed in Note 17, "Fair Value of Financial Instruments" and Note 18, "Fair Value Measurement" of the Notes to the Consolidated Financial Statements included in Item 8, Financial Statements and Supplementary Data, of the Company's 2017 Annual Report on Form 10-K, except for the valuation of loans held for investment which was impact by the adoption of ASU 2016-01. In accordance with ASU 2016-01, the fair value of loans held for investment is estimated using a discounted cash flow analysis. The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit, and nonperformance risk of the loans. Loans are considered a Level 3 classification. Assets Measured on a Recurring Basis As required by accounting standards, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company classified investments in government securities as Level II instruments and valued them using the market approach. The following measurements are made on a recurring basis. • Available-for-sale investment and equity securities – Available-for-sale investment securities are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are 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. Level I securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level II securities include mortgage-backed securities issued by government sponsored entities and private label entities, municipal bonds, and corporate debt securities. There have been no changes in valuation techniques for the three months ended June 30, 2018 . Valuation techniques are consistent with techniques used in prior periods. Certain local municipal securities related to tax increment financing (“TIF”) are independently valued and classified as Level III instruments. • Loans held for sale – The fair value of mortgage loans held for sale is determined, when possible, using quoted secondary-market prices or investor commitments. If no such quoted price exists, the fair value of a loan is determined using quoted prices for a similar asset or assets, adjusted for the specific attributes of that loan, which would be used by other market participants. • Interest rate lock commitment – The Company estimates the fair value of interest rate lock commitments based on the value of the underlying mortgage loan, quoted mortgage-backed security prices, and estimates of the fair value of the mortgage servicing rights and the probability that the mortgage loan will fund within the terms of the interest rate lock commitments. • Mortgage-backed security hedges – MBS hedges are considered derivatives and are recorded at fair value based on observable market data of the individual mortgage-backed security. • Interest rate cap – The fair value of the interest rate cap is determined at the end of each quarter by using Bloomberg Finance which values the interest rate cap using observable inputs from forward and futures yield curves as well as standard market volatility. • Interest rate swap – Interest rate swaps are recorded at fair value based on third party vendors who compile prices from various sources and may determine fair value of identical or similar instruments by using pricing models that consider observable market data. The following tables present the assets reported on the consolidated statements of financial condition at their fair value on a recurring basis as of June 30, 2018 and December 31, 2017 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. June 30, 2018 (Dollars in thousands) Level I Level II Level III Total Assets: U.S. Government Agency securities $ — $ 78,900 $ — $ 78,900 U.S. Sponsored Mortgage backed securities — 53,726 — 53,726 Municipal securities — 51,868 28,173 80,041 Other securities — 9,418 — 9,418 Equity securities 6,069 — 900 6,969 Loans held for sale — 98,799 — 98,799 Interest rate lock commitment — — 2,375 2,375 Interest rate swap — 290 — 290 Interest rate cap — 50 — 50 Liabilities: Interest rate swap — 290 — 290 Mortgage-backed security hedges — 362 — 362 December 31, 2017 (Dollars in thousands) Level I Level II Level III Total Assets: U.S. Government Agency securities $ — $ 80,945 $ — $ 80,945 U.S. Sponsored Mortgage backed securities — 58,154 — 58,154 Municipal securities — 52,933 22,909 75,842 Equity securities 1,607 14,059 900 16,566 Loans held for sale — 66,794 — 66,794 Interest rate lock commitment — — 1,426 1,426 Interest rate swap — 268 — 268 Interest rate cap — 33 — 33 Liabilities: Interest rate swap — 268 — 268 Mortgage-backed security hedges — 78 — 78 The following table represents recurring level III assets: (Dollars in thousands) Interest Rate Lock Commitments Municipal Securities Equity Securities Total Balance at December 31, 2017 $ 1,426 $ 22,909 $ 900 $ 25,235 Realized and unrealized gains included in earnings 949 — — 949 Purchase of securities — 6,232 — 6,232 Unrealized gain included in other comprehensive income (loss) — — — — Unrealized loss included in other comprehensive income (loss) — (968 ) — (968 ) Balance at June 30, 2018 $ 2,375 $ 28,173 $ 900 $ 31,448 Balance at March 31, 2018 $ 2,312 $ 22,571 $ 900 $ 25,783 Realized and unrealized gains included in earnings 63 — — 63 Purchase of securities — 6,232 — 6,232 Unrealized gain included in other comprehensive income (loss) — 29 — 29 Unrealized loss included in other comprehensive income (loss) — (659 ) — (659 ) Balance at June 30, 2018 $ 2,375 $ 28,173 $ 900 $ 31,448 Balance at December 31, 2016 $ 1,546 $ 6,135 $ 300 $ 7,981 Realized and unrealized gains included in earnings 548 — — 548 Unrealized gain included in other comprehensive income (loss) — 54 — 54 Balance at June 30, 2017 $ 2,094 $ 6,189 $ 300 $ 8,583 Balance at March 31, 2017 $ 2,855 $ 6,189 $ 300 $ 9,344 Realized and unrealized losses included in earnings (761 ) — — (761 ) Unrealized gain included in other comprehensive income (loss) — — — — Balance at June 30, 2017 $ 2,094 $ 6,189 $ 300 $ 8,583 Assets Measured on a Nonrecurring Basis The Company may be required, from time to time, to measure certain financial assets, financial liabilities, non-financial assets, and non-financial liabilities at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles. These include assets that are measured at the lower of cost or market value that were recognized at fair value below cost at the end of the period. Certain non-financial assets measured at fair value on a nonrecurring basis include foreclosed assets (upon initial recognition or subsequent impairment), non-financial assets and non-financial liabilities measured at fair value in the second step of a goodwill impairment test, and intangible assets and other non-financial long-lived assets measured at fair value for impairment assessment. Non-financial assets measured at fair value on a nonrecurring basis during 2018 and 2017 include certain foreclosed assets which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for possible loan losses and certain foreclosed assets which, subsequent to their initial recognition, were remeasured at fair value through a write-down included in other noninterest expense. • Impaired loans – Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment using one of several methods, including collateral value, liquidation value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. Collateral values are estimated using Level II inputs based on observable market data or Level III inputs based on customized discounting criteria. For a majority of impaired real estate related loans, the Company obtains a current external appraisal. Other valuation techniques are used as well, including internal valuations, comparable property analysis and contractual sales information. • Other real estate owned – Other real estate owned, which is obtained through the Bank’s foreclosure process is valued utilizing the appraised collateral value. Collateral values are estimated using Level II inputs based on observable market data or Level III inputs based on customized discounting criteria. At the time, the foreclosure is completed, the Company obtains a current external appraisal. Assets measured at fair value on a nonrecurring basis as of June 30, 2018 and December 31, 2017 are included in the table below: June 30, 2018 (Dollars in thousands) Level I Level II Level III Total Impaired loans $ — $ — $ 14,196 $ 14,196 Other real estate owned — — 1,775 1,775 December 31, 2017 (Dollars in thousands) Level I Level II Level III Total Impaired loans $ — $ — $ 14,368 $ 14,368 Other real estate owned — — 1,346 1,346 The following tables presents quantitative information about the Level III significant unobservable inputs for assets and liabilities measured at fair value at June 30, 2018 and December 31, 2017 . Quantitative Information about Level III Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range June 30, 2018 Nonrecurring measurements: Impaired loans $ 14,196 Appraisal of collateral 1 Appraisal adjustments 2 20% - 62% Liquidation expense 3 5% - 10% Other real estate owned $ 1,775 Appraisal of collateral 1 Appraisal adjustments 2 20% - 30% Liquidation expense 3 5% - 10% Recurring measurements: Municipal securities $ 28,173 Appraisal of bond 3 Bond appraisal adjustment 4 5% - 15% Interest rate lock commitments $ 2,375 Pricing model Pull through rates 76% - 87% Quantitative Information about Level III Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range December 31, 2017 Nonrecurring measurements: Impaired loans $ 14,368 Appraisal of collateral 1 Appraisal adjustments 2 20% - 62% Liquidation expense 3 5% - 10% Other real estate owned $ 1,346 Appraisal of collateral 1 Appraisal adjustments 2 20% - 30% Liquidation expense 3 5% - 10% Recurring measurements: Municipal securities $ 22,909 Appraisal of bond 3 Bond appraisal adjustment 4 5% - 15% Interest rate lock commitments $ 1,426 Pricing model Pull through rates 73% - 85% 1 Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level III inputs which are not identifiable. 2 Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. 3 Fair value determined through independent analysis of liquidity, rating, yield and duration. 4 Appraisals may be adjusted for qualitative factors such as local economic conditions. Estimated fair values have been determined by the Company using historical data, as generally provided in the Company’s regulatory reports, and an estimation methodology suitable for each category of financial instruments. The Company’s fair value estimates, methods and assumptions are set forth below for the Company’s other financial instruments. • Cash and cash equivalents: – The carrying amounts for cash and cash equivalents approximate fair value because they have original maturities of 90 days or less and do not present unanticipated credit concerns. • Certificates of deposits – The fair values for certificates of deposits are computed based on scheduled future cash flows of principal and interest, discounted at interest rates currently offered for certificates of deposits with similar terms of investors. No prepayments of principal are assumed. • Securities available-for-sale and equity securities – U.S. treasury, government agency, mortgage-backed securities, certain municipal securities, and corporate bonds are generally measured at fair value using a third-party pricing service or recent comparable market transactions in similar or identical securities and are classified as Level II instruments. Equity securities are measured at fair value using observable closing prices and are classified as Level I instruments if they are traded on a heavily active market and as Level II instruments if the observable closing price is from a less than active market. Certain local municipal securities related to tax increment financing (“TIF”) are independently valued and classified as Level III instruments. • Loans held for sale – Loans held for sale are reported at fair value. These loans currently consist of one-to-four-family residential loans originated for sale in the secondary market. Fair value is based on committed market rates or the price secondary markets are currently offering for similar loans using observable market data. (Level II) • Loans – The fair values for loans are computed based on scheduled future cash flows of principal and interest, discounted at interest rates currently offered for loans with similar terms of borrowers of similar credit quality. Additionally, to be consistent with the requirements under FASB ASC Topic 820 for Fair Value Measurements and Disclosures, the loans were valued at a price that represents the Company's exit price or the price at which these instruments would be sold or transferred. • Mortgage servicing rights – The carrying value of mortgage servicing rights approximates their fair value due to the immateriality of the balance. • Interest rate lock commitment – For mortgage interest rate locks, the fair value is based on either (i) the price of the underlying loans obtained from an investor for loans that will be delivered on a best efforts basis or (ii) the observable price for individual loans traded in the secondary market for loans that will be delivered on a mandatory basis less (iii) expected costs to deliver the interest rate locks, any expected “pull through rate” is multiplied by this calculation to estimate the derivative value. • Mortgage-backed security hedges – MBS hedges are used to mitigate interest rate risk for residential mortgage loans held for sale and interest rate locks and manage expected funding percentages. These instruments are considered derivatives and are recorded at fair value based on observable market data of the individual mortgage-backed securities. • Interest rate cap – The fair value of the interest rate cap is determined at the end of each quarter by using Bloomberg Finance which values the interest rate cap using observable inputs from forward and futures yield curves as well as standard market volatility. • Interest rate swap – Interest rate swaps are recorded at fair value based on third party vendors who compile prices from various sources and may determine fair value of identical or similar instruments by using pricing models that consider observable market data. • Accrued interest receivable and payable and repurchase agreements – The carrying values of accrued interest receivable and payable approximate their fair values. • Deposits – The fair values of demand deposits (i.e., noninterest bearing checking, NOW and money market), savings accounts and other variable rate deposits approximate their carrying values. Fair values of fixed maturity deposits are estimated using a discounted cash flow methodology at rates currently offered for deposits with similar remaining maturities. Any intangible value of long-term relationships with depositors is not considered in estimating the fair values disclosed. • FHLB and other borrowings – The fair values for loans are computed based on scheduled future cash flows of principal and interest, discounted at interest rates currently offered for loans with similar terms of borrowers of similar credit quality. No prepayments of principal are assumed. • Subordinated debt – The fair values for debt are computed based on scheduled future cash flows of principal and interest, discounted at interest rates currently offered for debt with similar terms of borrowers of similar credit quality. No prepayments of principal are assumed. • Off-balance sheet instruments – The fair values of commitments to extend credit and standby letters of credit are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of agreements and the present credit standing of the counterparties. The amounts of fees currently charged on commitments and standby letters of credit are deemed insignificant, and therefore, the estimated fair values and carrying values are not shown. The carrying values and estimated fair values of the Company’s financial instruments are summarized as follows: Fair Value Measurements at: (Dollars in thousands) Carrying Value Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) June 30, 2018 Financial assets: Cash and cash equivalents $ 23,950 $ 23,950 $ 23,950 $ — $ — Certificates of deposits with other banks 14,778 14,407 — 14,407 — Securities available-for-sale 222,085 222,085 — 193,912 28,173 Equity securities 6,969 6,969 6,069 — 900 Loans held for sale 98,799 98,799 — 98,799 — Loans, net 1,204,421 1,192,317 — — 1,192,317 Mortgage servicing rights 177 177 — — 177 Interest rate lock commitment 2,375 2,375 — — 2,375 Interest rate swap 290 290 — 290 — Interest rate cap 50 50 — 50 — Accrued interest receivable 6,267 6,267 — 1,453 4,814 Financial liabilities: Deposits $ 1,195,868 $ 1,146,746 $ — $ 1,146,746 $ — Repurchase agreements 20,240 20,240 — 20,240 — FHLB and other borrowings 266,830 266,857 — 266,857 — Mortgage-backed security hedges 362 362 — 362 — Interest rate swap 290 290 — 290 — Accrued interest payable 687 687 — 687 — Subordinated debt 20,796 21,700 — 21,700 — December 31, 2017 Financial assets: Cash and cash equivalents $ 20,305 $ 20,305 $ 20,305 $ — $ — Certificates of deposits with other banks 14,778 14,695 — 14,695 — Securities available-for-sale 231,507 231,507 1,607 206,091 23,809 Loans held for sale 66,794 66,794 — 66,794 — Loans, net 1,096,063 1,093,824 — — 1,093,824 Mortgage servicing rights 182 182 — — 182 Interest rate lock commitment 1,426 1,426 — — 1,426 Interest rate swap 268 268 — 268 — Interest rate cap 33 33 — 33 — Accrued interest receivable 5,296 5,296 — 1,241 4,055 Financial liabilities: Deposits $ 1,159,580 $ 1,126,615 $ — $ 1,126,615 $ — Repurchase agreements 22,403 22,403 — 22,403 — FHLB and other borrowings 152,169 152,190 — 152,190 — Mortgage-backed security hedges 78 78 — 78 — Interest rate swap 268 268 — 268 — Accrued interest payable 643 643 — 643 — Subordinated debt 33,524 35,117 — 35,117 — Fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on-and-off balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments.

Stock Offerings

Stock Offerings	6 Months Ended
	Jun. 30, 2018
Stockholders' Equity Note [Abstract]
Stock Offerings	Note 7 – Stock Offerings On March 13, 2017, the Company entered into an Investment Agreement (the “Investment Agreement”) with its Chief Executive Officer, Larry F. Mazza (“Mazza”). Pursuant to the Investment Agreement, Mazza committed to subscribe for and purchase, at the Subscription Price, upon expiration of the Rights Offering, the number of shares of the Company’s common stock, if any, equal to the amount by which 100,000 exceeds the number of shares purchased by Mazza in the Rights Offering. Pursuant to the Investment Agreement, Mazza agreed not to sell or otherwise transfer any shares acquired in connection with the Investment Agreement for a period of six months following the closing of the Rights Offering. Larry F. Mazza purchased 100,000 shares of the Company's common stock: 90,999 under the rights offering and 9,001 shares under the Investment Agreement. On March 13, 2017, the Company filed with the SEC a prospectus supplement and accompanying base prospectus (collectively, the “Prospectus”) relating to the commencement of the Company’s rights offering (the “Rights Offering”), pursuant to which the Company distributed, at no charge, non-transferable subscription rights to the holders of its common stock as of 5:00 p.m., Eastern time, on March 10, 2017. The subscription rights were exercisable for up to a total of 434,783 shares of the Company’s common stock, subject to such terms and conditions as further described in the Prospectus. On April 20, 2017, the Company announced the completion of the rights offering, which expired at 5:00 p.m. Eastern time on April 14, 2017. All 434,783 shares offered in the rights offering were subscribed for, resulting in new capital of approximately $5.0 million . Computershare, who served as subscription agent, completed its review and tabulation of subscriptions on April 19, 2017. Computershare issued the shares acquired in the rights offering by book entry in the Company's stock ownership records, which are maintained by Computershare, as transfer agent, on or about April 20, 2017. On December 5, 2016, the Company entered into Securities Purchase Agreements with certain accredited investors. Pursuant to the Purchase Agreements, the Investors agreed to purchase an aggregate of 1,913,044 shares of the Company’s common stock, par value $1.00 per share, at a price of $11.50 per share, as part of a private placement (the “Private Placement”). The Private Placement closed on December 6, 2016. The gross proceeds to the Company from the Private Placement were approximately $22 million or $20.5 million after stock issuance costs. The proceeds from the Private Placement were used by the Company to pay related transaction fees and expenses and for general corporate purposes. A portion of the proceeds were used for the redemption of the preferred stock issued to the United States Department of Treasury in connection with the Company’s participation in the Small Business Lending Fund. The Purchase Agreements contain representations and warranties and covenants of the Company and the Investors that are customary in private placement transactions. The provisions of the Purchase Agreements also include an agreement by the Company to indemnify the Investors against certain liabilities. The Purchase Agreements required the Company to file a registration statement with the SEC to register for resale the 1,913,044 shares of common stock issued to the Investors in the Private Placement. The registration statement was declared effective by the SEC on December 27, 2016. On June 30, 2014 , the Company filed Certificates of Designations for its Convertible Noncumulative Perpetual Preferred Stock, Series B (“Class B Preferred”) and its Convertible Noncumulative Perpetual Preferred Stock, Series C (“Class C Preferred”). The Class B Preferred Certificate designated 400 shares of preferred stock as Class B Preferred shares. The Class B Preferred shares carry an annual dividend rate of 6% and are convertible into shares of Company common stock within thirty days after the first, second, third, fourth and fifth anniversaries of the original issue date, based on a common stock price of $16 per share, as adjusted for future corporate activities. On December 28, 2017, the Company distributed a notice to each of the holders of the Class B Preferred Stock regarding the Company's agreement to waive the timing requirements associated with when a conversion may occur and, instead, the Company will accept notices of conversion at any time prior to July 30, 2019, which is the final conversion date for the Preferred Stock. The Class B Preferred shares are redeemable by the Company on or after the fifth anniversary of the original issue date for Liquidation Amount, as defined therein, plus declared and unpaid dividends. Redemption is subject to any necessary regulatory approvals. In the event of liquidation of the Company, shares of Class B Preferred stock shall be junior to creditors of the Company and to the shares of Senior Noncumulative Perpetual Preferred Stock, Series A. Holders of Class B Preferred shares shall have no voting rights, except for authorization of senior shares of stock, amendment to the Class B Preferred shares, share exchanges, reclassifications or changes of control, or as required by law. The Class C Preferred Certificate designated 383.4 shares of preferred stock as Class C Preferred shares. The Class C Preferred shares carry an annual dividend rate of 6.5% and are convertible into shares of Company common stock within 30 days after the first, second, third, fourth and fifth anniversaries of the original issue date, based on a common stock price of $16 per share, as adjusted for future corporate activities. On December 28, 2017, the Company distributed a notice to each of the holders of the Class C Preferred Stock regarding the Company's agreement to waive the timing requirements associated with when a conversion may occur and, instead, the Company will accept notices of conversion at any time prior to July 30, 2019, which is the final conversion date for the Preferred Stock. The Class C Preferred shares are redeemable by the Company on or after the fifth anniversary of the original issue date for Liquidation Amount, as defined therein, plus declared and unpaid dividends. Redemption is subject to any necessary regulatory approvals. In the event of liquidation of the Company, shares of Class C Preferred stock shall be junior to creditors of the Company and to the shares of Senior Noncumulative Perpetual Preferred Stock, Series A, and the Class B Preferred shares. Holders of Class C Preferred shares shall have no voting rights, except for authorization of senior shares of stock, amendment to the Class C Preferred shares, share exchanges, reclassifications, or changes of control, or as required by law. The proceeds of these preferred stock offerings will be used to support continued growth of the Company and its subsidiaries. On September 8, 2011 MVB received $8.5 million in Small Business Lending Fund (SBLF) capital. MVB issued 8,500 shares of $1,000 per share preferred stock with dividends payable in arrears on January 1, April 1, July 1, and October 1 each year. MVB's loan production qualified for the lowest dividend rate possible of 1% . MVB may continue to utilize the SBLF capital through March 8, 2016 at the 1% dividend rate. After that time, if the SBLF is not retired, the dividend rate increases to 9% . On January 5, 2017, the Company redeemed all of the 8,500 shares of its Senior Non-Cumulative Perpetual Preferred Stock, Series A, liquidation amount $1,000 per share (“Series A Preferred Stock”). The aggregate redemption price of the Series A Preferred Stock was $8,508,500 , including dividends accrued, but unpaid through, but not including the redemption date. The Series A Preferred Stock was redeemed from the Company’s surplus capital and approved by the Company’s primary federal regulator. The redemption terminated the Company’s participation in the SBLF program. After the redemption, the Company’s capital ratios remained well in excess of those required for well capitalized status.

Net Income Per Common Share

Net Income Per Common Share	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Net Income Per Common Share	Note 8 – Net Income Per Common Share The Company determines basic earnings per share by dividing net income less preferred stock dividends by the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined by dividing net income less dividends on convertible preferred stock plus interest on convertible subordinated debt by the weighted average number of shares outstanding increased by both the number of shares that would be issued assuming the exercise of stock options or restricted stock unit awards under the Company’s 2003 and 2013 Stock Incentive Plans and the conversion of preferred stock and subordinated debt if dilutive. Six Months Ended June 30, Three Months Ended June 30, (Dollars in thousands except shares and per share data) 2018 2017 2018 2017 Numerator for basic earnings per share: Net income $ 5,425 $ 3,834 $ 2,831 $ 2,260 Less: Dividends on preferred stock 243 251 122 122 Net income available to common shareholders - basic $ 5,182 $ 3,583 $ 2,709 $ 2,138 Numerator for diluted earnings per share: Net income available to common shareholders - basic $ 5,182 $ 3,583 $ 2,709 $ 2,138 Add: Dividends on convertible preferred stock — — 122 — Add: Interest on subordinated debt (tax effected) — — — 349 Net income available to common shareholders - diluted $ 5,182 $ 3,583 $ 2,831 $ 2,487 Denominator: Total average shares outstanding 10,554,916 10,171,198 10,634,805 10,343,933 Effect of dilutive convertible preferred stock — — 489,625 — Effect of dilutive convertible subordinated debt — — — 1,837,500 Effect of dilutive stock options and restrictive stock units 386,755 1,056 377,718 — Total diluted average shares outstanding 10,941,671 10,172,254 11,502,148 12,181,433 Earnings per share - basic $ 0.49 $ 0.35 $ 0.25 $ 0.21 Earnings per share - diluted $ 0.47 $ 0.35 $ 0.25 $ 0.20 For the six months ended June 30, 2018 and 2017 , approximately 1.5 million and 2.3 million , respectively, of options to purchase shares of common stock were not included in the computation of diluted earnings per share because the effect would be antidilutive. For the three months ended June 30, 2018 and 2017 , approximately 1.0 million and 490 thousand , respectively, of options to purchase shares of common stock were not included in the computation of diluted earnings per share because the effect would be antidilutive. For the six and three months ended June 30, 2018 , approximately 31 thousand shares and 37 thousand shares, respectively, of restricted stock units were not included in the computation of diluted earnings per share because the effect would be antidilutive.

Segment Reporting

Segment Reporting	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Segment Reporting	Note 9 – Segment Reporting The Company has identified three reportable segments: commercial and retail banking; mortgage banking; and financial holding company. Revenue from commercial and retail banking activities consists primarily of interest earned on loans and investment securities and service charges on deposit accounts. Revenue from financial holding company activities is mainly comprised of intercompany service income and dividends. Revenue from the mortgage banking activities is comprised of interest earned on loans and fees received as a result of the mortgage origination process. The mortgage banking services are conducted by MVB Mortgage. Information about the reportable segments and reconciliation to the consolidated financial statements for the three and six-month periods ended June 30, 2018 and June 30, 2017 are as follows: Three Months Ended June 30, 2018 Commercial & Retail Banking Mortgage Banking Financial Holding Company Intercompany Eliminations Consolidated (Dollars in thousands) Revenues: Interest income $ 15,426 $ 1,772 $ 1 $ (255 ) $ 16,944 Mortgage fee income 154 9,152 — (243 ) 9,063 Other income 1,068 706 1,489 (1,531 ) 1,732 Total operating income 16,648 11,630 1,490 (2,029 ) 27,739 Expenses: Interest expense 3,164 1,081 542 (498 ) 4,289 Salaries and employee benefits 3,884 6,826 1,784 — 12,494 Provision for loan losses 625 (20 ) — — 605 Other expense 4,968 2,296 1,022 (1,531 ) 6,755 Total operating expenses 12,641 10,183 3,348 (2,029 ) 24,143 Income (loss) before income taxes 4,007 1,447 (1,858 ) — 3,596 Income tax expense (benefit) 832 373 (440 ) — 765 Net income (loss) $ 3,175 $ 1,074 $ (1,418 ) $ — $ 2,831 Preferred stock dividends — — 122 — 122 Net income (loss) available to common shareholders 3,175 1,074 (1,540 ) — 2,709 Capital Expenditures for the three-month period ended June 30, 2018 $ 608 $ 29 $ 19 $ — $ 657 Total Assets as of June 30, 2018 1,681,115 191,933 187,917 (375,546 ) 1,685,419 Total Assets as of December 31, 2017 1,531,496 149,323 184,599 (331,116 ) 1,534,302 Goodwill as of June 30, 2018 1,598 16,882 — — 18,480 Goodwill as of December 31, 2017 1,598 16,882 — — 18,480 Three Months Ended June 30, 2017 Commercial & Retail Banking Mortgage Banking Financial Holding Company Intercompany Eliminations Consolidated (Dollars in thousands) Revenues: Interest income $ 12,907 $ 1,073 $ 1 $ (167 ) $ 13,814 Mortgage fee income 188 8,937 — (173 ) 8,952 Other income 1,529 1,137 1,307 (1,358 ) 2,615 Total operating income 14,624 11,147 1,308 (1,698 ) 25,381 Expenses: Interest expense 2,168 534 558 (340 ) 2,920 Salaries and employee benefits 3,267 7,147 1,384 — 11,798 Provision for loan losses 467 56 — — 523 Other expense 5,065 2,044 954 (1,358 ) 6,705 Total operating expenses 10,967 9,781 2,896 (1,698 ) 21,946 Income (loss) before income taxes 3,657 1,366 (1,588 ) — 3,435 Income tax expense (benefit) 1,165 540 (530 ) — 1,175 Net income (loss) $ 2,492 $ 826 $ (1,058 ) $ — $ 2,260 Preferred stock dividends — — 122 — 122 Net income (loss) available to common shareholders 2,492 826 (1,180 ) — 2,138 Capital Expenditures for the three-month period ended June 30, 2017 $ 1,732 $ 282 $ 17 $ — $ 2,031 Total Assets as of June 30, 2017 1,503,809 157,197 181,235 (335,188 ) 1,507,053 Total Assets as of December 31, 2016 1,415,735 122,242 180,335 (299,508 ) 1,418,804 Goodwill as of June 30, 2017 1,598 16,882 — — 18,480 Goodwill as of December 31, 2016 1,598 16,882 — — 18,480 Six Months Ended June 30, 2018 Commercial & Retail Banking Mortgage Banking Financial Holding Company Intercompany Eliminations Consolidated (Dollars in thousands) Revenues: Interest income $ 29,265 $ 3,107 $ 2 $ (376 ) $ 31,998 Mortgage fee income 292 15,825 — (491 ) 15,626 Other income 2,848 1,223 3,043 (2,906 ) 4,208 Total operating income 32,405 20,155 3,045 (3,773 ) 51,832 Expenses: Interest expense 5,838 1,808 1,100 (868 ) 7,878 Salaries and employee benefits 7,453 12,242 3,272 — 22,967 Provision for loan losses 1,042 37 — — 1,079 Other expense 9,527 4,418 1,981 (2,905 ) 13,021 Total operating expenses 23,860 18,505 6,353 (3,773 ) 44,945 Income (loss) before income taxes 8,545 1,650 (3,308 ) — 6,887 Income tax expense (benefit) 1,810 426 (774 ) — 1,462 Net income (loss) $ 6,735 $ 1,224 $ (2,534 ) $ — $ 5,425 Preferred stock dividends — — 243 — 243 Net income (loss) available to common shareholders 6,735 1,224 (2,777 ) — 5,182 Capital Expenditures for the six-month period ended June 30, 2018 $ 1,011 $ 107 $ 44 $ — $ 1,163 Total Assets as of June 30, 2018 1,681,115 191,933 187,917 (375,546 ) 1,685,419 Total Assets as of December 31, 2017 1,531,496 149,323 184,599 (331,116 ) 1,534,302 Goodwill as of June 30, 2018 1,598 16,882 — — 18,480 Goodwill as of December 31, 2017 1,598 16,882 — — 18,480 Six Months Ended June 30, 2017 Commercial & Retail Banking Mortgage Banking Financial Holding Company Intercompany Eliminations Consolidated (Dollars in thousands) Revenues: Interest income $ 25,218 $ 1,854 $ 2 $ (192 ) $ 26,882 Mortgage fee income 373 18,574 — (361 ) 18,586 Other income 2,609 (694 ) 2,518 (2,628 ) 1,805 Total operating income 28,200 19,734 2,520 (3,181 ) 47,273 Expenses: Interest expense 4,288 838 1,109 (553 ) 5,682 Salaries and employee benefits 5,924 13,101 2,735 — 21,760 Provision for loan losses 967 74 — — 1,041 Other expense 9,716 4,143 1,829 (2,628 ) 13,060 Total operating expenses 20,895 18,156 5,673 (3,181 ) 41,543 Income (loss) before income taxes 7,305 1,578 (3,153 ) — 5,730 Income tax expense (benefit) 2,326 636 (1,066 ) — 1,896 Net income (loss) $ 4,979 $ 942 $ (2,087 ) $ — $ 3,834 Preferred stock dividends — — 251 — 251 Net income (loss) available to common shareholders 4,979 942 (2,338 ) — 3,583 Capital Expenditures for the six-month period ended June 30, 2017 $ 2,600 $ 973 $ 46 $ — $ 3,619 Total Assets as of June 30, 2017 1,503,809 157,197 181,235 (335,188 ) 1,507,053 Total Assets as of December 31, 2016 1,415,735 122,242 180,335 (299,508 ) 1,418,804 Goodwill as of June 30, 2017 1,598 16,882 — — 18,480 Goodwill as of December 31, 2016 1,598 16,882 — — 18,480 Commercial & Retail Banking For the three months ended June 30 , 2018 , the Commercial & Retail Banking segment earned $3.2 million compared to $2.5 million in 2017 . Net interest income increased by $1.5 million , primarily the result of an increase of $2.0 million in interest and fees on loans. This increase in interest income was partially offset by an increase of $567 thousand in interest on deposits. Noninterest income decreased by $495 thousand which was the result of a decrease of $270 thousand in commercial swap fee income and a decrease of $203 thousand in gain on sale of portfolio loans. Noninterest expense increased by $520 thousand , primarily the result of an increase of $617 thousand in salaries and employee benefits expense and an incre ase of $174 thousand in other operating expenses. These increases were partially offset by a decrease of $280 thousand in data processing and communications expense. In addition, provision expense increased by $158 thousand due to increased loan volume in the second quarter of 2018 versus the same quarter in 2017, significantly reduced historical loan loss rates, increased specific loan loss allocations, and a lower level of charge-offs in the second quarter of 2018 versus 2017. For the six months ended June 30 , 2018 , the Commercial & Retail Banking segment earned $6.7 million compared to $5.0 million in 2017 . Net interest income increased by $2.5 million , primarily the result of an increase of $2.9 million in interest and fees on loans, an increase of $595 thousand in interest on taxable investment securities, and an increase of $505 thousand in interest on tax exempt loans and securities. This increase in interest income was partially offset by an increase of $960 thousand in interest on deposits and an increase of $589 thousand in interest on FHLB and other borrowings. Noninterest income increased by $158 thousand which was the result of an increase of $228 thousand in the performance of the interest rate cap and an increase of $148 thousand in Visa debit card and interchange income, partially offset by a decrease of $210 thousand in the gain on sale of securities. Noninterest expense increased by $1.3 million , primarily the result of an increase of $1.5 million in salaries and employee benefits expense and an increase of $377 thousand in other operating expenses. These increases were partially offset by a decrease of $412 thousand in data processing and communications expense. In addition, provision expense increased $75 thousand due to increased loan volume in the first half of 2018 versus the same time period in 2017, significantly reduced historical loan loss rates, decreased specific loan loss allocations, and a lower level of charge-offs in the six months ended June 30, 2018 versus the same time frame in 2017. Mortgage Banking For the three months ended June 30 , 2018 , the Mortgage Banking segment earned $1.1 million compared to $826 thousand in 2017 . Net interest income increased $152 thousand , which was the result of an increase of $699 thousand in interest and fees on loans, offset by an increase of $547 thousand in interest on FHLB and other borrowings due to an increase in short-term borrowing rates. Noninterest income decreased by $216 thousand , primarily the result of a decrease of $429 thousand in the gain on derivative, which was partially offset by an increase of $215 thousand in mortgage fee income. The decrease in gain on derivatives was largely the result of a decrease of $1.4 million in the valuation of the open trades used to hedge the derivative asset during the three months ended June 30 , 2018 compared to the valuation of the open trades used to hedge the derivative asset during the three months ended June 30 , 2017 . This was partially offset by a $900 thousand increase in the derivative asset as the locked pipeline related to the derivative asset increase of 8.0% in the second quarter of 2018 compared to a decrease of 3.0% in the second quarter of 2017 . Noninterest expense decreased by $69 thousand , which was the result of a decrease of $321 thousand in salaries and employee benefits expense, which was partially offset by an increase of $249 thousand in mortgage processing expense. The decrease in salaries and employee benefits expense was primarily the result of a decrease in the overall contractual commissions to loan officers and management, as well as a decrease of $205 thousand in the earn out paid to management of the mortgage company related to the 2012 acquisition. For the six months ended June 30 , 2018 , the Mortgage Banking segment earned $1.2 million compared to $942 thousand in 2017 . Net interest income increased by $283 thousand , primarily the result of an increase of $1.3 million in interest and fees on loans, offset by an increase of $970 thousand in interest on FHLB and other borrowings due to an increase in short-term borrowing rates. Noninterest income decreased by $832 thousand , primarily the result of a decrease of $2.7 million in mortgage fee income, partially offset by an increase of $1.9 million in gain on derivatives. The decrease in mortgage fee income was driven by the decrease of mortgage production volume, which decreased by $34.2 million or 4.4% for the six months ended June 30 , 2018 compared to the six months ended June 30 , 2017 . This was offset by the increase in gain on derivatives of $2.1 million , which was largely the result of a 66.8% increase in the locked mortgage pipeline for the six months ended June 30 , 2018 compared to a 3.3% increase in the locked mortgage pipeline for the six months ended June 30 , 2017 . Noninterest expense decreased by $584 thousand , which was the result of a decrease of $859 thousand in salaries and employee benefits expense, which was partially offset by an increase of $247 thousand in mortgage processing expense. The decrease in salaries and employee benefits expense was primarily the result of lower commissions paid due to a 4.4% decrease in mortgage closed loan volume and a decrease of $329 thousand in the earn out paid to management of the mortgage company related to the 2012 acquisition. Financial Holding Company For the three months ended June 30 , 2018 , the Financial Holding Company segment lost $1.4 million compared to a loss of $1.1 million in 2017 . Interest expense decreased $16 thousand , noninterest income increased $182 thousand , and n oninterest expense increased $468 thousand . In addition, the income tax benefit decreased $90 thousand . The increase in noninterest income was primarily the result of an $18 thousand holding gain on equity securities and an increase of $172 thousand in intercompany services income related to Regulation W. The increase in noninterest expense was primarily the result of an increase of $400 thousand in salaries and employee benefits expense and an increase of $121 thousand in travel, entertainment, dues, and subscriptions. For the six months ended June 30 , 2018 , the Financial Holding Company segment lost $2.5 million compared to a loss of $2.1 million in 2017 . Interest expense decreased $9 thousand , noninterest income increased $525 thousand , and noninterest expense increased $689 thousand . In addition, the income tax benefit decreased $292 thousand . The increase in noninterest income was primarily the result of a $70 thousand holding gain on equity securities, an increase of $278 thousand in intercompany services income related to Regulation W, and an increase of $186 thousand in gain on sale of securities. The increase in noninterest expense was primarily the result of an increase of $537 thousand in salaries and employee benefits expense and an increase of $252 thousand in travel, entertainment, dues, and subscriptions.

Pension and Supplemental Execut

Pension and Supplemental Executive Retirement Plans	6 Months Ended
	Jun. 30, 2018
Retirement Benefits [Abstract]
Pension and Supplemental Executive Retirement Plans	Note 10 – Pension and Supplemental Executive Retirement Plans The Company participates in a trusteed pension plan known as the Allegheny Group Retirement Plan covering virtually all full-time employees. Benefits are based on years of service and the employee's compensation. Accruals under the Plan were frozen as of May 31, 2014 . Freezing the plan resulted in a re-measurement of the pension obligations and plan assets as of the freeze date. The pension obligation was re-measured using the discount rate based on the Citigroup Above Median Pension Discount Curve in effect on May 31, 2014 of 4.46% . Information pertaining to the activity in the Company’s defined benefit plan, using the latest available actuarial valuations with a measurement date of June 30, 2018 and 2017 is as follows: (Dollars in thousands) Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Service cost $ — $ — $ — $ — Interest cost 176 180 88 90 Expected Return on Plan Assets (186 ) (172 ) (93 ) (86 ) Amortization of Net Actuarial Loss 153 120 77 60 Amortization of Prior Service Cost — — — — Net Periodic Benefit Cost $ 143 $ 128 $ 72 $ 64 Contributions Paid $ 158 $ 116 $ 79 $ 58 On June 19, 2017, the Company and MVB Mortgage approved a Supplemental Executive Retirement Plan (“SERP”), pursuant to which the Chief Executive Officer of MVB Mortgage is entitled to receive certain supplemental nonqualified retirement benefits. The SERP took effect on December 31, 2017. If executive completes three years of continuous employment with MVB Mortgage prior to retirement date (which shall be no earlier than the date he attains age 55) he will, upon retirement, be entitled to receive $1.8 million payable in 180 equal consecutive installments of $10 thousand . The liability is calculated by discounting the anticipated future cash flows at 4.0% . The liability accrued for this obligation was $189 thousand and $1 thousand as of June 30, 2018 and December 31, 2017 , respectively. Service cost was $94 thousand and $188 thousand for the three and six-month periods ended June 30, 2018 , respectively.

Comprehensive Income

Comprehensive Income	6 Months Ended
	Jun. 30, 2018
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Comprehensive Income	Note 11 – Comprehensive Income The following tables present the components of accumulated other comprehensive income (“AOCI”) six months ended June 30, 2018 and 2017 : (Dollars in thousands) Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Details about AOCI Components Amount Reclassified from AOCI Amount Reclassified from AOCI Amount Reclassified from AOCI Amount Reclassified from AOCI Affected line item in the Statement where Net Income is presented Available-for-sale securities Unrealized holding gains $ 326 $ 350 $ — $ 167 Gain on sale of securities 326 350 — 167 Total before tax (88 ) (140 ) — (67 ) Income tax expense 238 210 — 100 Net of tax Defined benefit pension plan items Amortization of net actuarial loss (153 ) (120 ) (77 ) (60 ) Salaries and benefits (153 ) (120 ) (77 ) (60 ) Total before tax 41 48 21 24 Income tax expense (112 ) (72 ) (56 ) (36 ) Net of tax Total reclassifications $ 126 $ 138 $ (56 ) $ 64 (Dollars in thousands) Unrealized gains (losses) on available for-sale securities Defined benefit pension plan items Total Balance at December 31, 2017 $ (5 ) $ (2,983 ) $ (2,988 ) Other comprehensive loss before reclassification (3,895 ) 452 (3,443 ) Amounts reclassified from AOCI (238 ) 112 (126 ) Net current period OCI (4,133 ) 564 (3,569 ) Stranded AOCI — (646 ) (646 ) Mark to Market on equity positions held at December 31, 2017 (98 ) — (98 ) Balance at June 30, 2018 $ (4,236 ) $ (3,065 ) $ (7,301 ) Balance at March 31, 2018 $ (3,588 ) $ (3,629 ) $ (7,217 ) Other comprehensive loss before reclassification (648 ) 508 (140 ) Amounts reclassified from AOCI — 56 56 Net current period OCI (648 ) 564 (84 ) Balance at June 30, 2018 $ (4,236 ) $ (3,065 ) $ (7,301 ) Balance at December 31, 2016 (1,598 ) (2,679 ) (4,277 ) Other comprehensive loss before reclassification 1,799 (274 ) 1,525 Amounts reclassified from AOCI (210 ) 72 (138 ) Net current period OCI 1,589 (202 ) 1,387 Balance at June 30, 2017 $ (9 ) $ (2,881 ) $ (2,890 ) Balance at March 31, 2017 $ (1,439 ) $ (2,581 ) $ (4,020 ) Other comprehensive loss before reclassification 1,530 (336 ) 1,194 Amounts reclassified from AOCI (100 ) 36 (64 ) Net current period OCI 1,430 (300 ) 1,130 Balance at June 30, 2017 $ (9 ) $ (2,881 ) $ (2,890 )

Recent Accounting Pronounceme20

Recent Accounting Pronouncements (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Principles of Consolidation and Basis of Presentation These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with instructions to Form 10‑Q. Accordingly, they do not include all the information and footnotes required by GAAP for annual year-end financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal, recurring nature. The consolidated balance sheet as of December 31, 2017 has been derived from audited financial statements included in the Company’s 2017 filing on Form 10-K. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 .
Use of Estimates	The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Estimates, such as the allowance for loan losses, are based upon known facts and circumstances. Estimates are revised by management in the period such facts and circumstances change. Actual results could differ from those estimates.
Consolidation	All significant inter-company accounts and transactions have been eliminated in consolidation.
Recent Accounting Pronouncements	In February 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This update requires a reclassification from accumulated other comprehensive income ("AOCI") to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate in the Tax Reform Act, which was enacted on December 22, 2017. The Tax Reform Act included a reduction to the corporate income tax rate from 34 percent to 21 percent effective January 1, 2018. The amendments in the ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company elected to early adopt ASU 2018-02 during the first quarter of 2018 and elected to reclassify the income tax effects of the Tax Reform Act from AOCI to retained earnings. The amount of the reclassification is the difference between the historical corporate income tax rate and the newly enacted 21 percent corporate income tax rate, which amounted to $646 thousand . In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities . This ASU amends guidance on the amortization period of premiums on certain purchased callable debt securities. Specifically, the amendments shorten the amortization period of premiums on certain purchased callable debt securities to the earliest call date. The amendments affect all entities that hold investments in callable debt securities that have an amortized cost basis in excess of the amount that is repayable by the issuer at the earliest call date (that is, at a premium). For public companies, this update will be effective for fiscal years effective for fiscal years beginning after December 15, 2018, including all interim periods within those fiscal years. The adoption of this guidance is not expected to be material to the consolidated financial statements, as it is our current policy to amortize premiums of investment securities to the earliest call date. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . Topic 350, Intangibles – Goodwill and Other (Topic 350), currently requires an entity that has not elected the private company alternative for goodwill to perform a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, an entity compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the entity performs Step 2 and compares the implied fair value of goodwill with the carrying amount of that goodwill for that reporting unit. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeds the implied fair value of that goodwill is recorded, limited to the amount of goodwill allocated to that reporting unit to address concerns over the cost and complexity of the two-step goodwill impairment test, the amendments in this Update remove the second step of the test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. For public companies, this update will be effective for fiscal years effective for fiscal years beginning after December 15, 2019, including all interim periods within those fiscal years. The adoption of this guidance did not have a material impact on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, to improve such definition and, as a result, assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or as business combinations. The definition of a business impacts many areas of accounting including acquisitions, disposals, goodwill, and consolidation. ASU 2017-01 was effective for the Company on January 1, 2018 and is to be applied under a prospective approach. The Company expects the adoption of this new guidance to impact the determination of whether future acquisitions are considered business combinations. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The new guidance replaces the incurred loss impairment methodology in current GAAP with an expected credit loss methodology and requires consideration of a broader range of information to determine credit loss estimates. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. Purchased credit impaired loans will receive an allowance account at the acquisition date that represents a component of the purchase price allocation. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses, with such allowance limited to the amount by which fair value is below amortized cost. The guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company's project management team and Management Loan Committee ("MLC") engaged a third party to assist with a data gap analysis and will utilize the data to determine the impact of the pronouncement. Additionally, the Company has researched and acquired software to assist with implementation that will be tested throughout 2018. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . Among other things, in the amendments in ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date:(1) A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company established a project management team, which is currently evaluating the impact of the new standard, and expects an increase to the Consolidated Balance Sheets for right-of-use assets and associated lease liabilities, as well as resulting depreciation expense of the right-of-use assets and interest expense of the lease liabilities in the Consolidated Statements of Income, for arrangements previously accounted for as operating leases. In January 2016, the FASB issued ASU 2016-01, Accounting for Financial Instruments - Overall: Classification and Measurement (Subtopic 825-10) . Amendments within ASU 2016-01 that relate to non-public entities have been excluded from this presentation. The amendments in this ASU 2016-01 address the following: 1) require equity investments to be measured at fair value with changes in fair value recognized in net income; 2) simplify the impairment assessment of equity investments without readily-determinable fair values by requiring a qualitative assessment to identify impairment; 3) eliminate the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; 4) require entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; 5) require separate presentation in other comprehensive income for the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; 6) require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and 7) clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company adopted this guidance in the first quarter of 2018. The adoption of ASU 2016-01 on January 1, 2018 did not have a material impact on the Company's Consolidated Financial Statements. In accordance with (5) above, the Company measured the fair value of its loan portfolio as of March 31, 2018 using an exit price notion. See Note 6 "Fair Value of Financial Instruments" of the Notes to Consolidated Financial Statements for further information. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The new revenue pronouncement creates a single source of revenue guidance for all companies in all industries and is more principles-based than current revenue guidance. The pronouncement provides a five-step model for a company to recognize revenue when it transfers control of goods or services to customers at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. The five steps are: (1) identify the contract with the customer, (2) identify the separate performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the separate performance obligations and (5) recognize revenue when each performance obligation is satisfied. The Company evaluated the impact of this standard on individual customer contracts, while management evaluated the impact of this standard on the broad categories of its customer contracts and revenue streams. The Company determined that this standard did not have a material impact on its consolidated financial statements because revenue related to financial instruments, including loans and investment securities are not in scope of these updates. Loan interest income, investment interest income, insurance services revenue and BOLI are accounted for under other U.S. GAAP standards and out of scope of ASC 606 revenue standard. The Company evaluated the impact of this standard on individual customer contracts, while management evaluated the impact of this standard on the broad categories of its customer contracts and revenue streams. The Company adopted the revenue recognition standard as of January 1, 2018 and it did not have a material effect on the consolidated financial statements.

Investment Securities (Tables)

Investment Securities (Tables)	6 Months Ended
	Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Amortized Cost and Fair Values of Investment Securities Available-for-sale	Amortized cost and fair values of investment securities available-for-sale at June 30, 2018 are summarized as follows: (Dollars in thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value U. S. Agency securities $ 81,180 $ 4 $ (2,284 ) $ 78,900 U.S. Sponsored Mortgage-backed securities 56,342 — (2,616 ) 53,726 Municipal securities 80,970 678 (1,607 ) 80,041 Total debt securities 218,492 682 (6,507 ) 212,667 Other securities 9,394 76 (52 ) 9,418 Total investment securities available-for-sale $ 227,886 $ 758 $ (6,559 ) $ 222,085 Amortized cost and fair values of investment securities available-for-sale at December 31, 2017 are summarized as follows: (Dollars in thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value U. S. Agency securities $ 81,705 $ 81 $ (841 ) $ 80,945 U.S. Sponsored Mortgage-backed securities 59,387 31 (1,264 ) 58,154 Municipal securities 74,482 1,733 (373 ) 75,842 Total debt securities 215,574 1,845 (2,478 ) 214,941 Equity and other securities 15,940 644 (18 ) 16,566 Total investment securities available-for-sale $ 231,514 $ 2,489 $ (2,496 ) $ 231,507
Amortized Cost and Fair Values of Debt Securities by Maturity	The following table summarizes amortized cost and fair values of debt securities by maturity: June 30, 2018 Available for sale (Dollars in thousands) Amortized Cost Fair Value Within one year $ 525 $ 528 After one year, but within five 48,810 47,901 After five years, but within ten 23,140 22,150 After ten years 146,017 142,088 Total $ 218,492 $ 212,667
Investments in an Unrealized Loss Position	The following table discloses investments in an unrealized loss position at June 30, 2018 : (Dollars in thousands) Less than 12 months 12 months or more Description and number of positions Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Agency securities (54) $ 59,528 $ (1,570 ) $ 16,626 $ (714 ) U.S. Sponsored Mortgage-backed securities (42) 17,490 (555 ) 36,236 (2,061 ) Municipal securities (86) 27,811 (703 ) 17,588 (904 ) Other securities (3) $ 2,493 $ (52 ) $ — $ — $ 107,322 $ (2,880 ) $ 70,450 $ (3,679 ) The following table discloses investments in an unrealized loss position at December 31, 2017 : (Dollars in thousands) Less than 12 months 12 months or more Description and number of positions Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Agency securities (45) $ 61,834 $ (659 ) $ 7,709 $ (182 ) U.S. Sponsored Mortgage-backed securities (39) 16,825 (159 ) 37,427 (1,105 ) Municipal securities (47) 8,826 (48 ) 16,781 (325 ) Equity and other securities (2) 1,034 (18 ) — — $ 88,519 $ (884 ) $ 61,917 $ (1,612 )

Loans and Allowance for Loan 22

Loans and Allowance for Loan Losses (Tables)	6 Months Ended
	Jun. 30, 2018
Receivables [Abstract]
Components of Loans in the Consolidated Balance Sheet	The components of loans in the Consolidated Balance Sheet at June 30, 2018 and December 31, 2017 , were as follows: (Dollars in thousands) June 30, 2018 December 31, 2017 Commercial and Non-Residential Real Estate $ 884,067 $ 783,909 Residential Real Estate 260,842 246,214 Home Equity 58,399 62,400 Consumer 11,380 12,783 Total Loans $ 1,214,688 $ 1,105,306 Deferred loan origination fees and costs, net 384 635 Loans receivable $ 1,215,072 $ 1,105,941
Allowance Activity	The following tables summarize the primary segments of the ALL, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of June 30, 2018 : (Dollars in thousands) Commercial Residential Home Equity Consumer Total ALL balance at December 31, 2017 $ 7,804 $ 1,119 $ 705 $ 250 $ 9,878 Charge-offs (324 ) (11 ) — (50 ) (385 ) Recoveries 10 9 56 4 79 Provision (recovery) 1,174 55 (159 ) 9 1,079 ALL balance at June 30, 2018 $ 8,664 $ 1,172 $ 602 $ 213 $ 10,651 Individually evaluated for impairment $ 1,049 $ — $ — $ — $ 1,049 Collectively evaluated for impairment $ 7,615 $ 1,172 $ 602 $ 213 $ 9,602 The following tables summarize the primary segments of the ALL, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of June 30, 2017 : (Dollars in thousands) Commercial Residential Home Equity Consumer Total ALL balance at December 31, 2016 $ 7,181 $ 990 $ 728 $ 202 $ 9,101 Charge-offs (263 ) (141 ) (33 ) (16 ) (453 ) Recoveries 21 34 2 2 59 Provision 784 109 80 68 1,041 ALL balance at June 30, 2017 $ 7,723 $ 992 $ 777 $ 256 $ 9,748 Individually evaluated for impairment $ 265 $ 14 $ 36 $ 71 $ 386 Collectively evaluated for impairment $ 7,458 $ 978 $ 741 $ 185 $ 9,362 (Dollars in thousands) Commercial Residential Home Equity Consumer Total ALL balance at March 31, 2017 $ 7,285 $ 1,085 $ 790 $ 212 $ 9,372 Charge-offs (150 ) — — (13 ) (163 ) Recoveries 12 2 1 1 16 Provision (recovery) 576 (95 ) (14 ) 56 523 ALL balance at June 30, 2017 $ 7,723 $ 992 $ 777 $ 256 $ 9,748
Primary Segments of the Loan Portfolio	The following table summarizes the primary segments of the Company loan portfolio as of June 30, 2018 : (Dollars in thousands) Commercial Residential Home Equity Consumer Total Individually evaluated for impairment $ 12,072 $ 3,096 $ 39 $ 39 $ 15,246 Collectively evaluated for impairment 871,995 257,746 58,360 11,341 1,199,442 Total Loans $ 884,067 $ 260,842 $ 58,399 $ 11,380 $ 1,214,688 The following table summarizes the primary segments of the Company loan portfolio as of June 30, 2017 : (Dollars in thousands) Commercial Residential Home Equity Consumer Total Individually evaluated for impairment $ 9,369 $ 1,051 $ 643 $ 267 $ 11,330 Collectively evaluated for impairment 772,901 241,121 63,679 13,347 1,091,048 Total Loans $ 782,270 $ 242,172 $ 64,322 $ 13,614 $ 1,102,378
Impaired Loans by Class	The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of June 30, 2018 and December 31, 2017 : Impaired Loans with Specific Allowance Impaired Loans with No Specific Allowance Total Impaired Loans (Dollars in thousands) Recorded Investment Related Allowance Recorded Investment Recorded Investment Unpaid Principal Balance June 30, 2018 Commercial Commercial Business $ 3,486 $ 145 $ 681 $ 4,167 $ 4,192 Commercial Real Estate 5,138 905 1,610 6,748 7,560 Acquisition & Development — — 1,157 1,157 3,437 Total Commercial 8,624 1,050 3,448 12,072 15,189 Residential — — 3,096 3,096 3,144 Home Equity — — 39 39 39 Consumer — — 39 39 40 Total Impaired Loans $ 8,624 $ 1,050 $ 6,622 $ 15,246 $ 18,412 December 31, 2017 Commercial Commercial Business $ 3,283 $ 22 $ 979 $ 4,262 $ 4,275 Commercial Real Estate 4,603 1,150 2,814 7,417 7,921 Acquisition & Development — — 2,117 2,117 4,090 Total Commercial 7,886 1,172 5,910 13,796 16,286 Residential — — 1,569 1,569 1,601 Home Equity — — 13 13 13 Consumer 69 16 109 178 475 Total Impaired Loans $ 7,955 $ 1,188 $ 7,601 $ 15,556 $ 18,375
Average Recorded Investment in Impaired Loans and Related Interest Income Recognized	The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated: Six Months Ended June 30, 2018 Three Months Ended June 30, 2018 (Dollars in thousands) Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Commercial Commercial Business $ 4,329 $ 76 $ 51 $ 4,132 $ 38 $ 51 Commercial Real Estate 7,173 48 22 6,915 24 22 Acquisition & Development 1,520 — — 1,203 — — Total Commercial 13,022 124 73 12,250 62 73 Residential 1,973 10 3 2,200 5 3 Home Equity 79 — — 93 — — Consumer 93 — — 53 — — Total $ 15,167 $ 134 $ 76 $ 14,596 $ 67 $ 76 Six Months Ended June 30, 2017 Three Months Ended June 30, 2017 (Dollars in thousands) Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Average Investment in Impaired Loans Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Commercial Commercial Business $ 3,358 $ 78 $ 59 $ 3,368 $ 34 $ 46 Commercial Real Estate 2,718 50 50 2,632 50 24 Acquisition & Development 3,673 4 6 3,571 4 3 Total Commercial 9,749 132 115 9,571 88 73 Residential 1,336 4 24 1,256 4 7 Home Equity 649 1 1 644 1 — Consumer 163 — — 184 — — Total $ 11,897 $ 137 $ 140 $ 11,655 $ 93 $ 80
Classes of the Loan Portfolio Summarized by the Aggregate Pass and the Criticized Categories	The following table represents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of June 30, 2018 and December 31, 2017 : (Dollars in thousands) Pass Special Mention Substandard Doubtful Total June 30, 2018 Commercial Commercial Business $ 413,053 $ 5,561 $ 4,313 $ — $ 422,927 Commercial Real Estate 323,450 14,515 2,373 4,224 344,562 Acquisition & Development 112,594 987 2,140 857 116,578 Total Commercial 849,097 21,063 8,826 5,081 884,067 Residential 256,375 2,617 1,729 121 260,842 Home Equity 57,564 796 39 — 58,399 Consumer 11,188 178 14 — 11,380 Total Loans $ 1,174,224 $ 24,654 $ 10,608 $ 5,202 $ 1,214,688 December 31, 2017 Commercial Commercial Business $ 371,041 $ 4,816 $ 4,506 $ — $ 380,363 Commercial Real Estate 271,751 22,995 5,961 1,149 301,856 Acquisition & Development 96,712 931 2,230 1,817 101,690 Total Commercial 739,504 28,742 12,697 2,966 783,909 Residential 242,823 3,036 223 132 246,214 Home Equity 61,037 1,311 52 — 62,400 Consumer 12,453 174 25 131 12,783 Total Loans $ 1,055,817 $ 33,263 $ 12,997 $ 3,229 $ 1,105,306
Classes of the Loan Portfolio Summarized by Aging Categories	The following table presents the classes of the loan portfolio summarized by aging categories of performing loans and nonaccrual loans as of June 30, 2018 and December 31, 2017 : (Dollars in thousands) Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Total Loans Non-Accrual 90+ Days Still Accruing June 30, 2018 Commercial Commercial Business $ 419,486 $ 39 $ 3,304 $ 98 $ 3,441 $ 422,927 $ 899 $ — Commercial Real Estate 339,818 28 141 4,575 4,744 344,562 4,638 — Acquisition & Development 115,421 — — 1,157 1,157 116,578 1,157 — Total Commercial 874,725 67 3,445 5,830 9,342 884,067 6,694 — Residential 258,847 25 247 1,723 1,995 260,842 2,696 — Home Equity 58,140 145 114 — 259 58,399 — — Consumer 11,048 313 1 18 332 11,380 29 — Total Loans $ 1,202,760 $ 550 $ 3,807 $ 7,571 $ 11,928 $ 1,214,688 $ 9,419 $ — December 31, 2017 Commercial Commercial Business $ 377,901 $ 512 $ 1,368 $ 582 $ 2,462 $ 380,363 $ 1,027 $ — Commercial Real Estate 300,282 45 1,149 380 1,574 301,856 5,206 — Acquisition & Development 99,573 — 874 1,243 2,117 101,690 2,117 — Total Commercial 777,756 557 3,391 2,205 6,153 783,909 8,350 — Residential 243,177 1,879 707 451 3,037 246,214 1,157 — Home Equity 61,907 240 240 13 493 62,400 13 — Consumer 12,634 11 — 138 149 12,783 179 — Total Loans $ 1,095,474 $ 2,687 $ 4,338 $ 2,807 $ 9,832 $ 1,105,306 $ 9,699 $ —
Troubled Debt Restructurings on Financing Receivables	New TDR's 1 Six Months Ended June 30, 2018 Three Months Ended June 30, 2018 (Dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial Commercial Business 2 $ 272 $ 272 1 $ 144 $ 144 Commercial Real Estate — — — — — — Acquisition & Development — — — — — — Total Commercial 2 272 272 1 144 144 Residential — — — — — — Home Equity 1 39 39 1 39 39 Consumer 1 10 10 1 10 10 Total 4 $ 321 $ 321 3 $ 193 $ 193 1 The pre-modification and post-modification balances represent the balances outstanding immediately before and after modification of the loan.

Borrowed Funds (Tables)

Borrowed Funds (Tables)	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Information Related to Short-term Borrowings	Information related to short-term borrowings is summarized as follows: (Dollars in thousands) June 30, 2018 December 31, 2017 Balance at end of period $ 264,297 $ 149,596 Average balance during the period 227,615 100,969 Maximum month-end balance 264,297 220,097 Weighted-average rate during the year 1.90 % 1.16 % Weighted-average rate at end of period 2.10 % 1.61 %
Information Related To Repurchase Agreements	Information related to repurchase agreements is summarized as follows: (Dollars in thousands) June 30, 2018 December 31, 2017 Balance at end of period $ 20,240 $ 22,403 Average balance during the period 20,118 25,160 Maximum month-end balance 20,676 25,972 Weighted-average rate during the year 0.38 % 0.30 % Weighted-average rate at end of period 0.39 % 0.34 %
Long-term Notes from the FHLB	Long-term notes from the FHLB were as follows: (Dollars in thousands) June 30, 2018 December 31, 2017 Fixed interest rate notes, originating between October 2006 and April 2007, due between October 2021 and April 2022, interest of between 5.18% and 5.20% payable monthly $ 1,770 $ 1,798 Amortizing fixed interest rate note, originating February 2007, due February 2022, payable in monthly installments of $5 thousand, including interest of 5.22% 763 775 $ 2,533 $ 2,573
Information Related to Subordinated Debt	Information related to subordinated debt is summarized as follows: (Dollars in thousands) June 30, 2018 December 31, 2017 Balance at end of period $ 20,796 $ 33,524 Average balance during the period 32,015 33,524 Maximum month-end balance 33,524 33,524 Weighted-average rate during the year 6.77 % 6.69 % Weighted-average rate at end of period 6.73 % 6.70 %
Maturities of Borrowings and Subordinated Debt	A summary of maturities of borrowings and subordinated debt over the next five years is as follows (dollars in thousands): Year Amount 2018 264,338 2019 85 2020 90 2021 886 2022 1,431 Thereafter 20,796 $ 287,626

Fair Value of Financial Instr24

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2018
Fair value of assets and liabilities
Schedule of Recurring Level III Assets	The following table represents recurring level III assets: (Dollars in thousands) Interest Rate Lock Commitments Municipal Securities Equity Securities Total Balance at December 31, 2017 $ 1,426 $ 22,909 $ 900 $ 25,235 Realized and unrealized gains included in earnings 949 — — 949 Purchase of securities — 6,232 — 6,232 Unrealized gain included in other comprehensive income (loss) — — — — Unrealized loss included in other comprehensive income (loss) — (968 ) — (968 ) Balance at June 30, 2018 $ 2,375 $ 28,173 $ 900 $ 31,448 Balance at March 31, 2018 $ 2,312 $ 22,571 $ 900 $ 25,783 Realized and unrealized gains included in earnings 63 — — 63 Purchase of securities — 6,232 — 6,232 Unrealized gain included in other comprehensive income (loss) — 29 — 29 Unrealized loss included in other comprehensive income (loss) — (659 ) — (659 ) Balance at June 30, 2018 $ 2,375 $ 28,173 $ 900 $ 31,448 Balance at December 31, 2016 $ 1,546 $ 6,135 $ 300 $ 7,981 Realized and unrealized gains included in earnings 548 — — 548 Unrealized gain included in other comprehensive income (loss) — 54 — 54 Balance at June 30, 2017 $ 2,094 $ 6,189 $ 300 $ 8,583 Balance at March 31, 2017 $ 2,855 $ 6,189 $ 300 $ 9,344 Realized and unrealized losses included in earnings (761 ) — — (761 ) Unrealized gain included in other comprehensive income (loss) — — — — Balance at June 30, 2017 $ 2,094 $ 6,189 $ 300 $ 8,583
Quantitative Information About the Level III Significant Unobservable Inputs for Assets and Liabilities Measured at Fair Value on Nonrecurring Basis	The following tables presents quantitative information about the Level III significant unobservable inputs for assets and liabilities measured at fair value at June 30, 2018 and December 31, 2017 . Quantitative Information about Level III Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range June 30, 2018 Nonrecurring measurements: Impaired loans $ 14,196 Appraisal of collateral 1 Appraisal adjustments 2 20% - 62% Liquidation expense 3 5% - 10% Other real estate owned $ 1,775 Appraisal of collateral 1 Appraisal adjustments 2 20% - 30% Liquidation expense 3 5% - 10% Recurring measurements: Municipal securities $ 28,173 Appraisal of bond 3 Bond appraisal adjustment 4 5% - 15% Interest rate lock commitments $ 2,375 Pricing model Pull through rates 76% - 87% Quantitative Information about Level III Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range December 31, 2017 Nonrecurring measurements: Impaired loans $ 14,368 Appraisal of collateral 1 Appraisal adjustments 2 20% - 62% Liquidation expense 3 5% - 10% Other real estate owned $ 1,346 Appraisal of collateral 1 Appraisal adjustments 2 20% - 30% Liquidation expense 3 5% - 10% Recurring measurements: Municipal securities $ 22,909 Appraisal of bond 3 Bond appraisal adjustment 4 5% - 15% Interest rate lock commitments $ 1,426 Pricing model Pull through rates 73% - 85% 1 Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level III inputs which are not identifiable. 2 Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. 3 Fair value determined through independent analysis of liquidity, rating, yield and duration. 4 Appraisals may be adjusted for qualitative factors such as local economic conditions.
Carrying Values and Estimated Fair Values of Financial Instruments	The carrying values and estimated fair values of the Company’s financial instruments are summarized as follows: Fair Value Measurements at: (Dollars in thousands) Carrying Value Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) June 30, 2018 Financial assets: Cash and cash equivalents $ 23,950 $ 23,950 $ 23,950 $ — $ — Certificates of deposits with other banks 14,778 14,407 — 14,407 — Securities available-for-sale 222,085 222,085 — 193,912 28,173 Equity securities 6,969 6,969 6,069 — 900 Loans held for sale 98,799 98,799 — 98,799 — Loans, net 1,204,421 1,192,317 — — 1,192,317 Mortgage servicing rights 177 177 — — 177 Interest rate lock commitment 2,375 2,375 — — 2,375 Interest rate swap 290 290 — 290 — Interest rate cap 50 50 — 50 — Accrued interest receivable 6,267 6,267 — 1,453 4,814 Financial liabilities: Deposits $ 1,195,868 $ 1,146,746 $ — $ 1,146,746 $ — Repurchase agreements 20,240 20,240 — 20,240 — FHLB and other borrowings 266,830 266,857 — 266,857 — Mortgage-backed security hedges 362 362 — 362 — Interest rate swap 290 290 — 290 — Accrued interest payable 687 687 — 687 — Subordinated debt 20,796 21,700 — 21,700 — December 31, 2017 Financial assets: Cash and cash equivalents $ 20,305 $ 20,305 $ 20,305 $ — $ — Certificates of deposits with other banks 14,778 14,695 — 14,695 — Securities available-for-sale 231,507 231,507 1,607 206,091 23,809 Loans held for sale 66,794 66,794 — 66,794 — Loans, net 1,096,063 1,093,824 — — 1,093,824 Mortgage servicing rights 182 182 — — 182 Interest rate lock commitment 1,426 1,426 — — 1,426 Interest rate swap 268 268 — 268 — Interest rate cap 33 33 — 33 — Accrued interest receivable 5,296 5,296 — 1,241 4,055 Financial liabilities: Deposits $ 1,159,580 $ 1,126,615 $ — $ 1,126,615 $ — Repurchase agreements 22,403 22,403 — 22,403 — FHLB and other borrowings 152,169 152,190 — 152,190 — Mortgage-backed security hedges 78 78 — 78 — Interest rate swap 268 268 — 268 — Accrued interest payable 643 643 — 643 — Subordinated debt 33,524 35,117 — 35,117 —
Recurring
Fair value of assets and liabilities
Financial Assets and Liabilities Measured at Fair Value	The following tables present the assets reported on the consolidated statements of financial condition at their fair value on a recurring basis as of June 30, 2018 and December 31, 2017 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. June 30, 2018 (Dollars in thousands) Level I Level II Level III Total Assets: U.S. Government Agency securities $ — $ 78,900 $ — $ 78,900 U.S. Sponsored Mortgage backed securities — 53,726 — 53,726 Municipal securities — 51,868 28,173 80,041 Other securities — 9,418 — 9,418 Equity securities 6,069 — 900 6,969 Loans held for sale — 98,799 — 98,799 Interest rate lock commitment — — 2,375 2,375 Interest rate swap — 290 — 290 Interest rate cap — 50 — 50 Liabilities: Interest rate swap — 290 — 290 Mortgage-backed security hedges — 362 — 362 December 31, 2017 (Dollars in thousands) Level I Level II Level III Total Assets: U.S. Government Agency securities $ — $ 80,945 $ — $ 80,945 U.S. Sponsored Mortgage backed securities — 58,154 — 58,154 Municipal securities — 52,933 22,909 75,842 Equity securities 1,607 14,059 900 16,566 Loans held for sale — 66,794 — 66,794 Interest rate lock commitment — — 1,426 1,426 Interest rate swap — 268 — 268 Interest rate cap — 33 — 33 Liabilities: Interest rate swap — 268 — 268 Mortgage-backed security hedges — 78 — 78
Non-recurring
Fair value of assets and liabilities
Financial Assets and Liabilities Measured at Fair Value	Assets measured at fair value on a nonrecurring basis as of June 30, 2018 and December 31, 2017 are included in the table below: June 30, 2018 (Dollars in thousands) Level I Level II Level III Total Impaired loans $ — $ — $ 14,196 $ 14,196 Other real estate owned — — 1,775 1,775 December 31, 2017 (Dollars in thousands) Level I Level II Level III Total Impaired loans $ — $ — $ 14,368 $ 14,368 Other real estate owned — — 1,346 1,346

Net Income Per Common Share (Ta

Net Income Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Schedule of Net Income Per Common Share	Six Months Ended June 30, Three Months Ended June 30, (Dollars in thousands except shares and per share data) 2018 2017 2018 2017 Numerator for basic earnings per share: Net income $ 5,425 $ 3,834 $ 2,831 $ 2,260 Less: Dividends on preferred stock 243 251 122 122 Net income available to common shareholders - basic $ 5,182 $ 3,583 $ 2,709 $ 2,138 Numerator for diluted earnings per share: Net income available to common shareholders - basic $ 5,182 $ 3,583 $ 2,709 $ 2,138 Add: Dividends on convertible preferred stock — — 122 — Add: Interest on subordinated debt (tax effected) — — — 349 Net income available to common shareholders - diluted $ 5,182 $ 3,583 $ 2,831 $ 2,487 Denominator: Total average shares outstanding 10,554,916 10,171,198 10,634,805 10,343,933 Effect of dilutive convertible preferred stock — — 489,625 — Effect of dilutive convertible subordinated debt — — — 1,837,500 Effect of dilutive stock options and restrictive stock units 386,755 1,056 377,718 — Total diluted average shares outstanding 10,941,671 10,172,254 11,502,148 12,181,433 Earnings per share - basic $ 0.49 $ 0.35 $ 0.25 $ 0.21 Earnings per share - diluted $ 0.47 $ 0.35 $ 0.25 $ 0.20

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Information About the Reportable Segments and Reconciliation to the Consolidated Financial Statements	Information about the reportable segments and reconciliation to the consolidated financial statements for the three and six-month periods ended June 30, 2018 and June 30, 2017 are as follows: Three Months Ended June 30, 2018 Commercial & Retail Banking Mortgage Banking Financial Holding Company Intercompany Eliminations Consolidated (Dollars in thousands) Revenues: Interest income $ 15,426 $ 1,772 $ 1 $ (255 ) $ 16,944 Mortgage fee income 154 9,152 — (243 ) 9,063 Other income 1,068 706 1,489 (1,531 ) 1,732 Total operating income 16,648 11,630 1,490 (2,029 ) 27,739 Expenses: Interest expense 3,164 1,081 542 (498 ) 4,289 Salaries and employee benefits 3,884 6,826 1,784 — 12,494 Provision for loan losses 625 (20 ) — — 605 Other expense 4,968 2,296 1,022 (1,531 ) 6,755 Total operating expenses 12,641 10,183 3,348 (2,029 ) 24,143 Income (loss) before income taxes 4,007 1,447 (1,858 ) — 3,596 Income tax expense (benefit) 832 373 (440 ) — 765 Net income (loss) $ 3,175 $ 1,074 $ (1,418 ) $ — $ 2,831 Preferred stock dividends — — 122 — 122 Net income (loss) available to common shareholders 3,175 1,074 (1,540 ) — 2,709 Capital Expenditures for the three-month period ended June 30, 2018 $ 608 $ 29 $ 19 $ — $ 657 Total Assets as of June 30, 2018 1,681,115 191,933 187,917 (375,546 ) 1,685,419 Total Assets as of December 31, 2017 1,531,496 149,323 184,599 (331,116 ) 1,534,302 Goodwill as of June 30, 2018 1,598 16,882 — — 18,480 Goodwill as of December 31, 2017 1,598 16,882 — — 18,480 Three Months Ended June 30, 2017 Commercial & Retail Banking Mortgage Banking Financial Holding Company Intercompany Eliminations Consolidated (Dollars in thousands) Revenues: Interest income $ 12,907 $ 1,073 $ 1 $ (167 ) $ 13,814 Mortgage fee income 188 8,937 — (173 ) 8,952 Other income 1,529 1,137 1,307 (1,358 ) 2,615 Total operating income 14,624 11,147 1,308 (1,698 ) 25,381 Expenses: Interest expense 2,168 534 558 (340 ) 2,920 Salaries and employee benefits 3,267 7,147 1,384 — 11,798 Provision for loan losses 467 56 — — 523 Other expense 5,065 2,044 954 (1,358 ) 6,705 Total operating expenses 10,967 9,781 2,896 (1,698 ) 21,946 Income (loss) before income taxes 3,657 1,366 (1,588 ) — 3,435 Income tax expense (benefit) 1,165 540 (530 ) — 1,175 Net income (loss) $ 2,492 $ 826 $ (1,058 ) $ — $ 2,260 Preferred stock dividends — — 122 — 122 Net income (loss) available to common shareholders 2,492 826 (1,180 ) — 2,138 Capital Expenditures for the three-month period ended June 30, 2017 $ 1,732 $ 282 $ 17 $ — $ 2,031 Total Assets as of June 30, 2017 1,503,809 157,197 181,235 (335,188 ) 1,507,053 Total Assets as of December 31, 2016 1,415,735 122,242 180,335 (299,508 ) 1,418,804 Goodwill as of June 30, 2017 1,598 16,882 — — 18,480 Goodwill as of December 31, 2016 1,598 16,882 — — 18,480 Six Months Ended June 30, 2018 Commercial & Retail Banking Mortgage Banking Financial Holding Company Intercompany Eliminations Consolidated (Dollars in thousands) Revenues: Interest income $ 29,265 $ 3,107 $ 2 $ (376 ) $ 31,998 Mortgage fee income 292 15,825 — (491 ) 15,626 Other income 2,848 1,223 3,043 (2,906 ) 4,208 Total operating income 32,405 20,155 3,045 (3,773 ) 51,832 Expenses: Interest expense 5,838 1,808 1,100 (868 ) 7,878 Salaries and employee benefits 7,453 12,242 3,272 — 22,967 Provision for loan losses 1,042 37 — — 1,079 Other expense 9,527 4,418 1,981 (2,905 ) 13,021 Total operating expenses 23,860 18,505 6,353 (3,773 ) 44,945 Income (loss) before income taxes 8,545 1,650 (3,308 ) — 6,887 Income tax expense (benefit) 1,810 426 (774 ) — 1,462 Net income (loss) $ 6,735 $ 1,224 $ (2,534 ) $ — $ 5,425 Preferred stock dividends — — 243 — 243 Net income (loss) available to common shareholders 6,735 1,224 (2,777 ) — 5,182 Capital Expenditures for the six-month period ended June 30, 2018 $ 1,011 $ 107 $ 44 $ — $ 1,163 Total Assets as of June 30, 2018 1,681,115 191,933 187,917 (375,546 ) 1,685,419 Total Assets as of December 31, 2017 1,531,496 149,323 184,599 (331,116 ) 1,534,302 Goodwill as of June 30, 2018 1,598 16,882 — — 18,480 Goodwill as of December 31, 2017 1,598 16,882 — — 18,480 Six Months Ended June 30, 2017 Commercial & Retail Banking Mortgage Banking Financial Holding Company Intercompany Eliminations Consolidated (Dollars in thousands) Revenues: Interest income $ 25,218 $ 1,854 $ 2 $ (192 ) $ 26,882 Mortgage fee income 373 18,574 — (361 ) 18,586 Other income 2,609 (694 ) 2,518 (2,628 ) 1,805 Total operating income 28,200 19,734 2,520 (3,181 ) 47,273 Expenses: Interest expense 4,288 838 1,109 (553 ) 5,682 Salaries and employee benefits 5,924 13,101 2,735 — 21,760 Provision for loan losses 967 74 — — 1,041 Other expense 9,716 4,143 1,829 (2,628 ) 13,060 Total operating expenses 20,895 18,156 5,673 (3,181 ) 41,543 Income (loss) before income taxes 7,305 1,578 (3,153 ) — 5,730 Income tax expense (benefit) 2,326 636 (1,066 ) — 1,896 Net income (loss) $ 4,979 $ 942 $ (2,087 ) $ — $ 3,834 Preferred stock dividends — — 251 — 251 Net income (loss) available to common shareholders 4,979 942 (2,338 ) — 3,583 Capital Expenditures for the six-month period ended June 30, 2017 $ 2,600 $ 973 $ 46 $ — $ 3,619 Total Assets as of June 30, 2017 1,503,809 157,197 181,235 (335,188 ) 1,507,053 Total Assets as of December 31, 2016 1,415,735 122,242 180,335 (299,508 ) 1,418,804 Goodwill as of June 30, 2017 1,598 16,882 — — 18,480 Goodwill as of December 31, 2016 1,598 16,882 — — 18,480

Pension and Supplemental Exec27

Pension and Supplemental Executive Retirement Plans (Tables)	6 Months Ended
	Jun. 30, 2018
Retirement Benefits [Abstract]
Activity in the Defined Benefit Plan	Information pertaining to the activity in the Company’s defined benefit plan, using the latest available actuarial valuations with a measurement date of June 30, 2018 and 2017 is as follows: (Dollars in thousands) Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Service cost $ — $ — $ — $ — Interest cost 176 180 88 90 Expected Return on Plan Assets (186 ) (172 ) (93 ) (86 ) Amortization of Net Actuarial Loss 153 120 77 60 Amortization of Prior Service Cost — — — — Net Periodic Benefit Cost $ 143 $ 128 $ 72 $ 64 Contributions Paid $ 158 $ 116 $ 79 $ 58

Comprehensive Income (Tables)

Comprehensive Income (Tables)	6 Months Ended
	Jun. 30, 2018
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Reclassification out of Accumulated Other Comprehensive Income	The following tables present the components of accumulated other comprehensive income (“AOCI”) six months ended June 30, 2018 and 2017 : (Dollars in thousands) Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Details about AOCI Components Amount Reclassified from AOCI Amount Reclassified from AOCI Amount Reclassified from AOCI Amount Reclassified from AOCI Affected line item in the Statement where Net Income is presented Available-for-sale securities Unrealized holding gains $ 326 $ 350 $ — $ 167 Gain on sale of securities 326 350 — 167 Total before tax (88 ) (140 ) — (67 ) Income tax expense 238 210 — 100 Net of tax Defined benefit pension plan items Amortization of net actuarial loss (153 ) (120 ) (77 ) (60 ) Salaries and benefits (153 ) (120 ) (77 ) (60 ) Total before tax 41 48 21 24 Income tax expense (112 ) (72 ) (56 ) (36 ) Net of tax Total reclassifications $ 126 $ 138 $ (56 ) $ 64
Components of Accumulated Other Comprehensive Income	(Dollars in thousands) Unrealized gains (losses) on available for-sale securities Defined benefit pension plan items Total Balance at December 31, 2017 $ (5 ) $ (2,983 ) $ (2,988 ) Other comprehensive loss before reclassification (3,895 ) 452 (3,443 ) Amounts reclassified from AOCI (238 ) 112 (126 ) Net current period OCI (4,133 ) 564 (3,569 ) Stranded AOCI — (646 ) (646 ) Mark to Market on equity positions held at December 31, 2017 (98 ) — (98 ) Balance at June 30, 2018 $ (4,236 ) $ (3,065 ) $ (7,301 ) Balance at March 31, 2018 $ (3,588 ) $ (3,629 ) $ (7,217 ) Other comprehensive loss before reclassification (648 ) 508 (140 ) Amounts reclassified from AOCI — 56 56 Net current period OCI (648 ) 564 (84 ) Balance at June 30, 2018 $ (4,236 ) $ (3,065 ) $ (7,301 ) Balance at December 31, 2016 (1,598 ) (2,679 ) (4,277 ) Other comprehensive loss before reclassification 1,799 (274 ) 1,525 Amounts reclassified from AOCI (210 ) 72 (138 ) Net current period OCI 1,589 (202 ) 1,387 Balance at June 30, 2017 $ (9 ) $ (2,881 ) $ (2,890 ) Balance at March 31, 2017 $ (1,439 ) $ (2,581 ) $ (4,020 ) Other comprehensive loss before reclassification 1,530 (336 ) 1,194 Amounts reclassified from AOCI (100 ) 36 (64 ) Net current period OCI 1,430 (300 ) 1,130 Balance at June 30, 2017 $ (9 ) $ (2,881 ) $ (2,890 )

Recent Accounting Pronounceme29

Recent Accounting Pronouncements - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Accounting Policies [Abstract]
Income tax expense (benefit)	$ 646

Investment Securities - Held-to

Investment Securities - Held-to-maturity (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Held-to-maturity securities	$ 0	$ 0

Investment Securities - Availab

Investment Securities - Available-for-sale (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Amortized cost and fair values of investment securities available-for-sale
Amortized Cost	$ 227,886	$ 231,514
Unrealized Gain	758	2,489
Unrealized Loss	(6,559)	(2,496)
Fair Value	222,085	231,507
Total debt securities
Amortized cost and fair values of investment securities available-for-sale
Amortized Cost	218,492	215,574
Unrealized Gain	682	1,845
Unrealized Loss	(6,507)	(2,478)
Fair Value	212,667	214,941
U. S. Agency securities
Amortized cost and fair values of investment securities available-for-sale
Amortized Cost	81,180	81,705
Unrealized Gain	4	81
Unrealized Loss	(2,284)	(841)
Fair Value	78,900	80,945
U.S. Sponsored Mortgage-backed securities
Amortized cost and fair values of investment securities available-for-sale
Amortized Cost	56,342	59,387
Unrealized Gain	0	31
Unrealized Loss	(2,616)	(1,264)
Fair Value	53,726	58,154
Municipal securities
Amortized cost and fair values of investment securities available-for-sale
Amortized Cost	80,970	74,482
Unrealized Gain	678	1,733
Unrealized Loss	(1,607)	(373)
Fair Value	80,041	75,842
Other securities
Amortized cost and fair values of investment securities available-for-sale
Amortized Cost	9,394
Unrealized Gain	76
Unrealized Loss	(52)
Fair Value	$ 9,418
Equity and other securities
Amortized cost and fair values of investment securities available-for-sale
Amortized Cost		15,940
Unrealized Gain		644
Unrealized Loss		(18)
Fair Value		$ 16,566

Investment Securities - Summary

Investment Securities - Summary of Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Available for sale, Amortized Cost
Amortized Cost	$ 227,886	$ 231,514
Available for sale, Fair Value
Total	222,085	231,507
Carrying value of investment securities pledged	69,200
Total debt securities
Available for sale, Amortized Cost
Within one year	525
After one year, but within five	48,810
After five years, but within ten	23,140
After ten years	146,017
Amortized Cost	218,492	215,574
Available for sale, Fair Value
Within one year	528
After one year, but within five	47,901
After five years, but within ten	22,150
After ten years	142,088
Total	$ 212,667	$ 214,941

Investment Securities - Summa33

Investment Securities - Summary of Unrealized Loss Positions (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)security	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)security	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)security
Investments in an unrealized loss position
Amount of pretax loss if securities in an unrealized loss position are sold	$ 6,600,000		$ 6,600,000
Investments in an Unrealized Loss Position
Less than 12 months, fair value	107,322,000		107,322,000		$ 88,519,000
Less than 12 months, unrealized loss	(2,880,000)		(2,880,000)		(884,000)
12 months or more, fair value	70,450,000		70,450,000		61,917,000
12 months or more, unrealized loss	(3,679,000)		(3,679,000)		$ (1,612,000)
Available-for-sale Securities
Available-for-sale investments sold	0	$ 10,100,000	680,000	$ 33,075,000
Gains on the sale of available-for-sale investments	0	167,000	326,000	716,000
Losses on the sale of available-for-sale investments	0	$ 0	0	$ 366,000
Unrealized loss on securities	$ 40,000		$ 11,000
U. S. Agency securities
Investments in an unrealized loss position
Number of investments in an unrealized loss position | security	54		54		45
Investments in an Unrealized Loss Position
Less than 12 months, fair value	$ 59,528,000		$ 59,528,000		$ 61,834,000
Less than 12 months, unrealized loss	(1,570,000)		(1,570,000)		(659,000)
12 months or more, fair value	16,626,000		16,626,000		7,709,000
12 months or more, unrealized loss	$ (714,000)		$ (714,000)		$ (182,000)
U.S. Sponsored Mortgage-backed securities
Investments in an unrealized loss position
Number of investments in an unrealized loss position | security	42		42		39
Investments in an Unrealized Loss Position
Less than 12 months, fair value	$ 17,490,000		$ 17,490,000		$ 16,825,000
Less than 12 months, unrealized loss	(555,000)		(555,000)		(159,000)
12 months or more, fair value	36,236,000		36,236,000		37,427,000
12 months or more, unrealized loss	$ (2,061,000)		$ (2,061,000)		$ (1,105,000)
Municipal securities
Investments in an unrealized loss position
Number of investments in an unrealized loss position | security	86		86		47
Investments in an Unrealized Loss Position
Less than 12 months, fair value	$ 27,811,000		$ 27,811,000		$ 8,826,000
Less than 12 months, unrealized loss	(703,000)		(703,000)		(48,000)
12 months or more, fair value	17,588,000		17,588,000		16,781,000
12 months or more, unrealized loss	$ (904,000)		$ (904,000)		$ (325,000)
Other securities
Investments in an unrealized loss position
Number of investments in an unrealized loss position | security	3		3
Investments in an Unrealized Loss Position
Less than 12 months, fair value	$ 2,493,000		$ 2,493,000
Less than 12 months, unrealized loss	(52,000)		(52,000)
12 months or more, fair value	0		0
12 months or more, unrealized loss	$ 0		$ 0
Equity and other securities
Investments in an unrealized loss position
Number of investments in an unrealized loss position | security					2
Investments in an Unrealized Loss Position
Less than 12 months, fair value					$ 1,034,000
Less than 12 months, unrealized loss					(18,000)
12 months or more, fair value					0
12 months or more, unrealized loss					$ 0

Loans and Allowance for Loan 34

Loans and Allowance for Loan Losses - Narrative (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)propertyborrowercontractcomponentloanmethod	Jun. 30, 2017contract	Jun. 30, 2018USD ($)relationshippropertycategoryborrowercontractcomponentquarterloanmethod	Jun. 30, 2017contract	Dec. 31, 2017USD ($)
Financing Receivable, Impaired [Line Items]
Deferred loan origination fees and costs, net	$ 384,000		$ 384,000		$ 635,000
Allowance for loan losses, number of evaluation components | component	2		2
Impaired loans collectively evaluated	$ 1,900,000		$ 1,900,000		1,300,000
Impaired loans, related reserves	201,000		$ 201,000		169,000
Number of rolling quarters utilized in charge-off factor calculation | quarter			12
Liability for unfunded commitments	$ 284,000		$ 284,000		284,000
Total valuation methods used on impaired loans | method	3		3
Impaired loans, identified during the period			$ 2,000,000
Impaired loans, principal curtailment			796,000
Impaired loans, partial charge-offs			362,000
Reclassification to other real estate owned			720,000
Classification to performing loans			293,000
Foreclosed properties held	$ 1,800,000		$ 1,800,000
Number of points in internal risk rating system | category			9
Number of categories in internal risk rating system considered as not criticized | category			6
Commercial relationship credit review threshold amount	1,000,000		$ 1,000,000
Past due period before loans placed in non-accrual status			90 days
Recent loan payment history before removal from non-accrual status			6 months
Prepayment performance of commercial loan	3,200,000		$ 3,200,000
Specific reserve allocations for TDR's	454,000		454,000		439,000
Loans identified as impaired, remaining loans	$ 6,400,000		$ 6,400,000		6,400,000
Number of loans to defaulted borrowers | loan			0
Number of contracts | contract	3		4
Acquisition & Development
Financing Receivable, Impaired [Line Items]
Number of borrower defaulted | borrower	1		1
Number of loans to defaulted borrowers | loan	3
Commercial
Financing Receivable, Impaired [Line Items]
Forclosure of unrelated borrower | property	3		3
Loans identified as impaired, remaining loans	$ 144,000		$ 144,000
Residential
Financing Receivable, Impaired [Line Items]
Increase (decrease) in impaired loans (as a percentage)			43.00%
Number foreclosed properties held | property	8		8
Foreclosed properties held	$ 775,000		$ 775,000
Foreclosure of loan relationship | relationship			2
Forclosure of unrelated borrower | property	2		2
Consumer
Financing Receivable, Impaired [Line Items]
Number of additional collateralized loans in the process of foreclosure | loan			4
Investment in loans in the process of foreclosure	$ 407,000		$ 407,000
Investment in loans in the process of foreclosure, related allowance	0		0
Total Recorded Investment In Impaired Financing Receivables | Credit Concentration Risk
Financing Receivable, Impaired [Line Items]
Increase (decrease) in impaired loans			$ (310,000)
Increase (decrease) in impaired loans (as a percentage)			(2.00%)
Troubled Debt Restructured Loans
Financing Receivable, Impaired [Line Items]
Number of contracts | contract		0		0
Borrower One | Acquisition & Development
Financing Receivable, Impaired [Line Items]
Loans defaulted under the restructured terms			$ 432,000
Accruing
Financing Receivable, Impaired [Line Items]
Loans identified as impaired, remaining loans	$ 5,800,000		$ 5,800,000		$ 5,900,000
Accruing | Troubled Debt Restructured Loans | Portfolio Risk | Commercial
Financing Receivable, Impaired [Line Items]
Number of contracts | contract	1		2
Accruing | Troubled Debt Restructured Loans | Portfolio Risk | Commercial | Acquisition & Development
Financing Receivable, Impaired [Line Items]
Number of contracts | contract	0		0
Accruing | Troubled Debt Restructured Loans | Portfolio Risk | Commercial | Commercial Real Estate
Financing Receivable, Impaired [Line Items]
Number of contracts | contract	0		0
Accruing | Troubled Debt Restructured Loans | Portfolio Risk | Residential
Financing Receivable, Impaired [Line Items]
Number of contracts | contract	0		0
Accruing | Troubled Debt Restructured Loans | Portfolio Risk | Consumer
Financing Receivable, Impaired [Line Items]
Number of contracts | contract	1		1
Commercial Loan Relationship One | Residential
Financing Receivable, Impaired [Line Items]
Number foreclosed properties held | property	3		3
Foreclosed properties held	$ 395,000		$ 395,000
Commercial Loan Relationship Two | Residential
Financing Receivable, Impaired [Line Items]
Number foreclosed properties held | property	3		3
Foreclosed properties held	$ 178,000		$ 178,000
Commercial Loan Relationship Three | Residential
Financing Receivable, Impaired [Line Items]
Number foreclosed properties held | property	2		2
Foreclosed properties held	$ 182,000		$ 182,000
Other Loan Relationships | Residential
Financing Receivable, Impaired [Line Items]
Increase (decrease) in impaired loans (as a percentage)			57.00%
Foreclosed properties held	$ 1,000,000		$ 1,000,000

Loans and Allowance for Loan 35

Loans and Allowance for Loan Losses - Loan Summary (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Components of loans
Deferred loan origination fees and costs, net	$ 384	$ 635
Loans:	1,215,072	1,105,941
Total Loans	1,214,688	1,105,306	$ 1,102,378
Commercial
Components of loans
Total Loans	884,067	783,909	782,270
Residential
Components of loans
Total Loans	260,842	246,214	242,172
Home Equity
Components of loans
Total Loans	58,399	62,400
Consumer
Components of loans
Total Loans	$ 11,380	$ 12,783	$ 13,614

Loans and Allowance for Loan 36

Loans and Allowance for Loan Losses - Allowance (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Changes in the allowance for loan losses
Balance at beginning of period	$ 10,067	$ 9,372	$ 9,878	$ 9,101
Charge-offs	(29)	(163)	(385)	(453)
Recoveries	8	16	79	59
Provision	605	523	1,079	1,041
Balance at end of period	10,651	9,748	10,651	9,748
Individually evaluated for impairment	1,049	386	1,049	386
Collectively evaluated for impairment	9,602	9,362	9,602	9,362
Commercial
Changes in the allowance for loan losses
Balance at beginning of period	7,998	7,285	7,804	7,181
Charge-offs	0	(150)	(324)	(263)
Recoveries	8	12	10	21
Provision	658	576	1,174	784
Balance at end of period	8,664	7,723	8,664	7,723
Individually evaluated for impairment	1,049	265	1,049	265
Collectively evaluated for impairment	7,615	7,458	7,615	7,458
Residential
Changes in the allowance for loan losses
Balance at beginning of period	1,177	1,085	1,119	990
Charge-offs	0	0	(11)	(141)
Recoveries	0	2	9	34
Provision	(5)	(95)	55	109
Balance at end of period	1,172	992	1,172	992
Individually evaluated for impairment	0	14	0	14
Collectively evaluated for impairment	1,172	978	1,172	978
Home Equity
Changes in the allowance for loan losses
Balance at beginning of period	693	790	705	728
Charge-offs	0	0	0	(33)
Recoveries	0	1	56	2
Provision	(91)	(14)	(159)	80
Balance at end of period	602	777	602	777
Individually evaluated for impairment	0	36	0	36
Collectively evaluated for impairment	602	741	602	741
Consumer
Changes in the allowance for loan losses
Balance at beginning of period	199	212	250	202
Charge-offs	(29)	(13)	(50)	(16)
Recoveries	0	1	4	2
Provision	43	56	9	68
Balance at end of period	213	256	213	256
Individually evaluated for impairment	0	71	0	71
Collectively evaluated for impairment	$ 213	$ 185	$ 213	$ 185

Loans and Allowance for Loan 37

Loans and Allowance for Loan Losses - Primary Segments (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Primary segments of the loan portfolio:
Individually evaluated for impairment	$ 15,246		$ 11,330
Collectively evaluated for impairment	1,199,442		1,091,048
Total Loans	1,214,688	$ 1,105,306	1,102,378
Commercial
Primary segments of the loan portfolio:
Individually evaluated for impairment	12,072		9,369
Collectively evaluated for impairment	871,995		772,901
Total Loans	884,067	783,909	782,270
Residential
Primary segments of the loan portfolio:
Individually evaluated for impairment	3,096		1,051
Collectively evaluated for impairment	257,746		241,121
Total Loans	260,842	246,214	242,172
Home Equity
Primary segments of the loan portfolio:
Individually evaluated for impairment	39		643
Collectively evaluated for impairment	58,360		63,679
Total Loans	58,399	62,400	64,322
Consumer
Primary segments of the loan portfolio:
Individually evaluated for impairment	39		267
Collectively evaluated for impairment	11,341		13,347
Total Loans	$ 11,380	$ 12,783	$ 13,614

Loans and Allowance for Loan 38

Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Impaired loans by class
Impaired loans with specific allowance, recorded investment	$ 8,624		$ 8,624		$ 7,955
Impaired loans with specific allowance, related allowance	1,050		1,050		1,188
Impaired loans with no specific allowance, recorded investment	6,622		6,622		7,601
Total impaired loans, recorded investment	15,246		15,246		15,556
Total impaired loans, unpaid principal balance	18,412		18,412		18,375
Average recorded investment in impaired loans and related interest income recognized
Average Investment in Impaired Loans	14,596	$ 11,655	15,167	$ 11,897
Interest Income Recognized on Accrual Basis	67	93	134	137
Interest Income Recognized on Cash Basis	76	80	76	140
Commercial
Impaired loans by class
Impaired loans with specific allowance, recorded investment	8,624		8,624		7,886
Impaired loans with specific allowance, related allowance	1,050		1,050		1,172
Impaired loans with no specific allowance, recorded investment	3,448		3,448		5,910
Total impaired loans, recorded investment	12,072		12,072		13,796
Total impaired loans, unpaid principal balance	15,189		15,189		16,286
Average recorded investment in impaired loans and related interest income recognized
Average Investment in Impaired Loans	12,250	9,571	13,022	9,749
Interest Income Recognized on Accrual Basis	62	88	124	132
Interest Income Recognized on Cash Basis	73	73	73	115
Commercial | Commercial Business
Impaired loans by class
Impaired loans with specific allowance, recorded investment	3,486		3,486		3,283
Impaired loans with specific allowance, related allowance	145		145		22
Impaired loans with no specific allowance, recorded investment	681		681		979
Total impaired loans, recorded investment	4,167		4,167		4,262
Total impaired loans, unpaid principal balance	4,192		4,192		4,275
Average recorded investment in impaired loans and related interest income recognized
Average Investment in Impaired Loans	4,132	3,368	4,329	3,358
Interest Income Recognized on Accrual Basis	38	34	76	78
Interest Income Recognized on Cash Basis	51	46	51	59
Commercial | Commercial Real Estate
Impaired loans by class
Impaired loans with specific allowance, recorded investment	5,138		5,138		4,603
Impaired loans with specific allowance, related allowance	905		905		1,150
Impaired loans with no specific allowance, recorded investment	1,610		1,610		2,814
Total impaired loans, recorded investment	6,748		6,748		7,417
Total impaired loans, unpaid principal balance	7,560		7,560		7,921
Average recorded investment in impaired loans and related interest income recognized
Average Investment in Impaired Loans	6,915	2,632	7,173	2,718
Interest Income Recognized on Accrual Basis	24	50	48	50
Interest Income Recognized on Cash Basis	22	24	22	50
Commercial | Acquisition & Development
Impaired loans by class
Impaired loans with specific allowance, recorded investment	0		0		0
Impaired loans with specific allowance, related allowance	0		0		0
Impaired loans with no specific allowance, recorded investment	1,157		1,157		2,117
Total impaired loans, recorded investment	1,157		1,157		2,117
Total impaired loans, unpaid principal balance	3,437		3,437		4,090
Average recorded investment in impaired loans and related interest income recognized
Average Investment in Impaired Loans	1,203	3,571	1,520	3,673
Interest Income Recognized on Accrual Basis	0	4	0	4
Interest Income Recognized on Cash Basis	0	3	0	6
Residential
Impaired loans by class
Impaired loans with specific allowance, recorded investment	0		0		0
Impaired loans with specific allowance, related allowance	0		0		0
Impaired loans with no specific allowance, recorded investment	3,096		3,096		1,569
Total impaired loans, recorded investment	3,096		3,096		1,569
Total impaired loans, unpaid principal balance	3,144		3,144		1,601
Average recorded investment in impaired loans and related interest income recognized
Average Investment in Impaired Loans	2,200	1,256	1,973	1,336
Interest Income Recognized on Accrual Basis	5	4	10	4
Interest Income Recognized on Cash Basis	3	7	3	24
Home Equity
Impaired loans by class
Impaired loans with specific allowance, recorded investment	0		0		0
Impaired loans with specific allowance, related allowance	0		0		0
Impaired loans with no specific allowance, recorded investment	39		39		13
Total impaired loans, recorded investment	39		39		13
Total impaired loans, unpaid principal balance	39		39		13
Average recorded investment in impaired loans and related interest income recognized
Average Investment in Impaired Loans	93	644	79	649
Interest Income Recognized on Accrual Basis	0	1	0	1
Interest Income Recognized on Cash Basis	0	0	0	1
Consumer
Impaired loans by class
Impaired loans with specific allowance, recorded investment	0		0		69
Impaired loans with specific allowance, related allowance	0		0		16
Impaired loans with no specific allowance, recorded investment	39		39		109
Total impaired loans, recorded investment	39		39		178
Total impaired loans, unpaid principal balance	40		40		$ 475
Average recorded investment in impaired loans and related interest income recognized
Average Investment in Impaired Loans	53	184	93	163
Interest Income Recognized on Accrual Basis	0	0	0	0
Interest Income Recognized on Cash Basis	$ 0	$ 0	$ 0	$ 0

Loans and Allowance for Loan 39

Loans and Allowance for Loan Losses - Internal Risk Rating Summary (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	$ 1,214,688	$ 1,105,306	$ 1,102,378
Commercial
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	884,067	783,909	782,270
Commercial | Commercial Business
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	422,927	380,363
Commercial | Commercial Real Estate
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	344,562	301,856
Commercial | Acquisition & Development
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	116,578	101,690
Residential
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	260,842	246,214	242,172
Home Equity
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	58,399	62,400	64,322
Consumer
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	11,380	12,783	$ 13,614
Pass
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	1,174,224	1,055,817
Pass | Commercial
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	849,097	739,504
Pass | Commercial | Commercial Business
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	413,053	371,041
Pass | Commercial | Commercial Real Estate
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	323,450	271,751
Pass | Commercial | Acquisition & Development
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	112,594	96,712
Pass | Residential
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	256,375	242,823
Pass | Home Equity
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	57,564	61,037
Pass | Consumer
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	11,188	12,453
Special Mention
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	24,654	33,263
Special Mention | Commercial
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	21,063	28,742
Special Mention | Commercial | Commercial Business
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	5,561	4,816
Special Mention | Commercial | Commercial Real Estate
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	14,515	22,995
Special Mention | Commercial | Acquisition & Development
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	987	931
Special Mention | Residential
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	2,617	3,036
Special Mention | Home Equity
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	796	1,311
Special Mention | Consumer
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	178	174
Substandard
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	10,608	12,997
Substandard | Commercial
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	8,826	12,697
Substandard | Commercial | Commercial Business
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	4,313	4,506
Substandard | Commercial | Commercial Real Estate
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	2,373	5,961
Substandard | Commercial | Acquisition & Development
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	2,140	2,230
Substandard | Residential
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	1,729	223
Substandard | Home Equity
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	39	52
Substandard | Consumer
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	14	25
Doubtful
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	5,202	3,229
Doubtful | Commercial
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	5,081	2,966
Doubtful | Commercial | Commercial Business
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	0	0
Doubtful | Commercial | Commercial Real Estate
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	4,224	1,149
Doubtful | Commercial | Acquisition & Development
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	857	1,817
Doubtful | Residential
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	121	132
Doubtful | Home Equity
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	0	0
Doubtful | Consumer
Classes of the loan portfolio summarized by credit quality indicators:
Total Loans	$ 0	$ 131

Loans and Allowance for Loan 40

Loans and Allowance for Loan Losses - Aging (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Aging categories of performing loans and nonaccrual loans
Current	$ 1,202,760	$ 1,095,474
Total Past Due	11,928	9,832
Total Loans	1,214,688	1,105,306	$ 1,102,378
Non-Accrual	9,419	9,699
90 Plus Days Still Accruing	0	0
Commercial
Aging categories of performing loans and nonaccrual loans
Current	874,725	777,756
Total Past Due	9,342	6,153
Total Loans	884,067	783,909	782,270
Non-Accrual	6,694	8,350
90 Plus Days Still Accruing	0	0
Commercial | Commercial Business
Aging categories of performing loans and nonaccrual loans
Current	419,486	377,901
Total Past Due	3,441	2,462
Total Loans	422,927	380,363
Non-Accrual	899	1,027
90 Plus Days Still Accruing	0	0
Commercial | Commercial Real Estate
Aging categories of performing loans and nonaccrual loans
Current	339,818	300,282
Total Past Due	4,744	1,574
Total Loans	344,562	301,856
Non-Accrual	4,638	5,206
90 Plus Days Still Accruing	0	0
Commercial | Acquisition & Development
Aging categories of performing loans and nonaccrual loans
Current	115,421	99,573
Total Past Due	1,157	2,117
Total Loans	116,578	101,690
Non-Accrual	1,157	2,117
90 Plus Days Still Accruing	0	0
Residential
Aging categories of performing loans and nonaccrual loans
Current	258,847	243,177
Total Past Due	1,995	3,037
Total Loans	260,842	246,214	242,172
Non-Accrual	2,696	1,157
90 Plus Days Still Accruing	0	0
Home Equity
Aging categories of performing loans and nonaccrual loans
Current	58,140	61,907
Total Past Due	259	493
Total Loans	58,399	62,400	64,322
Non-Accrual	0	13
90 Plus Days Still Accruing	0	0
Consumer
Aging categories of performing loans and nonaccrual loans
Current	11,048	12,634
Total Past Due	332	149
Total Loans	11,380	12,783	$ 13,614
Non-Accrual	29	179
90 Plus Days Still Accruing	0	0
Financing Receivables, 30 to 59 Days Past Due
Aging categories of performing loans and nonaccrual loans
Total Past Due	550	2,687
Financing Receivables, 30 to 59 Days Past Due | Commercial
Aging categories of performing loans and nonaccrual loans
Total Past Due	67	557
Financing Receivables, 30 to 59 Days Past Due | Commercial | Commercial Business
Aging categories of performing loans and nonaccrual loans
Total Past Due	39	512
Financing Receivables, 30 to 59 Days Past Due | Commercial | Commercial Real Estate
Aging categories of performing loans and nonaccrual loans
Total Past Due	28	45
Financing Receivables, 30 to 59 Days Past Due | Commercial | Acquisition & Development
Aging categories of performing loans and nonaccrual loans
Total Past Due	0	0
Financing Receivables, 30 to 59 Days Past Due | Residential
Aging categories of performing loans and nonaccrual loans
Total Past Due	25	1,879
Financing Receivables, 30 to 59 Days Past Due | Home Equity
Aging categories of performing loans and nonaccrual loans
Total Past Due	145	240
Financing Receivables, 30 to 59 Days Past Due | Consumer
Aging categories of performing loans and nonaccrual loans
Total Past Due	313	11
Financing Receivables, 60 to 89 Days Past Due
Aging categories of performing loans and nonaccrual loans
Total Past Due	3,807	4,338
Financing Receivables, 60 to 89 Days Past Due | Commercial
Aging categories of performing loans and nonaccrual loans
Total Past Due	3,445	3,391
Financing Receivables, 60 to 89 Days Past Due | Commercial | Commercial Business
Aging categories of performing loans and nonaccrual loans
Total Past Due	3,304	1,368
Financing Receivables, 60 to 89 Days Past Due | Commercial | Commercial Real Estate
Aging categories of performing loans and nonaccrual loans
Total Past Due	141	1,149
Financing Receivables, 60 to 89 Days Past Due | Commercial | Acquisition & Development
Aging categories of performing loans and nonaccrual loans
Total Past Due	0	874
Financing Receivables, 60 to 89 Days Past Due | Residential
Aging categories of performing loans and nonaccrual loans
Total Past Due	247	707
Financing Receivables, 60 to 89 Days Past Due | Home Equity
Aging categories of performing loans and nonaccrual loans
Total Past Due	114	240
Financing Receivables, 60 to 89 Days Past Due | Consumer
Aging categories of performing loans and nonaccrual loans
Total Past Due	1	0
Financing Receivables, Equal to Greater than 90 Days Past Due
Aging categories of performing loans and nonaccrual loans
Total Past Due	7,571	2,807
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial
Aging categories of performing loans and nonaccrual loans
Total Past Due	5,830	2,205
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial | Commercial Business
Aging categories of performing loans and nonaccrual loans
Total Past Due	98	582
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial | Commercial Real Estate
Aging categories of performing loans and nonaccrual loans
Total Past Due	4,575	380
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial | Acquisition & Development
Aging categories of performing loans and nonaccrual loans
Total Past Due	1,157	1,243
Financing Receivables, Equal to Greater than 90 Days Past Due | Residential
Aging categories of performing loans and nonaccrual loans
Total Past Due	1,723	451
Financing Receivables, Equal to Greater than 90 Days Past Due | Home Equity
Aging categories of performing loans and nonaccrual loans
Total Past Due	0	13
Financing Receivables, Equal to Greater than 90 Days Past Due | Consumer
Aging categories of performing loans and nonaccrual loans
Total Past Due	$ 18	$ 138

Loans and Allowance for Loan 41

Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018USD ($)borrowercontractloan	Jun. 30, 2017contract	Jun. 30, 2018USD ($)borrowercontractloan	Jun. 30, 2017contract	Dec. 31, 2017USD ($)
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Specific reserve allocations for TDR's	$ 454		$ 454		$ 439
Troubled debt restructuring loans	$ 6,400		$ 6,400		6,400
Number of loans to defaulted borrowers | loan			0
Number of contracts | contract	3		4
Post-modification outstanding recorded investment	$ 193		$ 321
Pre-modification outstanding recorded investment	$ 193		$ 321
Acquisition & Development
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Number of loans to defaulted borrowers | loan	3
Number of borrower defaulted | borrower	1		1
Commercial
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Troubled debt restructuring loans	$ 144		$ 144
Residential
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Concentration risk, percentage			43.00%
Borrower One | Acquisition & Development
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Loans defaulted under the restructured terms			$ 432
Commercial Borrower One | Acquisition & Development
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Number of loans to defaulted borrowers | loan	2		2
Accruing
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Troubled debt restructuring loans	$ 5,800		$ 5,800		$ 5,900
Troubled Debt Restructured Loans
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Number of contracts | contract		0		0
Portfolio Risk | Troubled Debt Restructured Loans | Accruing
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Concentration Risk, Percentage			38.00%		38.00%
Portfolio Risk | Troubled Debt Restructured Loans | Accruing | Commercial
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Number of contracts | contract	1		2
Post-modification outstanding recorded investment	$ 144		$ 272
Pre-modification outstanding recorded investment	$ 144		$ 272
Portfolio Risk | Troubled Debt Restructured Loans | Accruing | Commercial | Commercial Business
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Number of contracts | contract	1		2
Post-modification outstanding recorded investment	$ 144		$ 272
Pre-modification outstanding recorded investment	$ 144		$ 272
Portfolio Risk | Troubled Debt Restructured Loans | Accruing | Commercial | Commercial Real Estate
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Number of contracts | contract	0		0
Post-modification outstanding recorded investment	$ 0		$ 0
Pre-modification outstanding recorded investment	$ 0		$ 0
Portfolio Risk | Troubled Debt Restructured Loans | Accruing | Commercial | Acquisition & Development
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Number of contracts | contract	0		0
Post-modification outstanding recorded investment	$ 0		$ 0
Pre-modification outstanding recorded investment	$ 0		$ 0
Portfolio Risk | Troubled Debt Restructured Loans | Accruing | Residential
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Number of contracts | contract	0		0
Post-modification outstanding recorded investment	$ 0		$ 0
Pre-modification outstanding recorded investment	$ 0		$ 0
Portfolio Risk | Troubled Debt Restructured Loans | Accruing | Home Equity
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Number of contracts | contract	1		1
Post-modification outstanding recorded investment	$ 39		$ 39
Pre-modification outstanding recorded investment	$ 39		$ 39
Portfolio Risk | Troubled Debt Restructured Loans | Accruing | Consumer
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Number of contracts | contract	1		1
Post-modification outstanding recorded investment	$ 10		$ 10
Pre-modification outstanding recorded investment	10		$ 10
Portfolio Risk | Troubled Debt Restructured Loans | Accruing | Home Equity Line of Credit and Consumer Loan
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Post-modification outstanding recorded investment	$ 49

Borrowed Funds - Short-term Bor

Borrowed Funds - Short-term Borrowings and Repurchase Agreements (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Short-term Borrowings from FHLB
Short-term Borrowings and Repurchase Agreements
Balance at end of period	$ 264,297	$ 149,596
Average balance during the period	227,615	100,969
Maximum month-end balance	$ 264,297	$ 220,097
Weighted-average rate during the year	1.90%	1.16%
Weighted-average rate at end of period	2.10%	1.61%
Investment Securities
Short-term Borrowings and Repurchase Agreements
Investment securities held as collateral	$ 20,800	$ 23,100
Repurchase Agreements
Short-term Borrowings and Repurchase Agreements
Balance at end of period	20,240	22,403
Average balance during the period	20,118	25,160
Maximum month-end balance	$ 20,676	$ 25,972
Weighted-average rate during the year	0.38%	0.30%
Weighted-average rate at end of period	0.39%	0.34%

Fair Value of Financial Instr43

Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Fair value of assets and liabilities
Securities available-for-sale	$ 222,085	$ 231,507
Recurring
Fair value of assets and liabilities
Loans held for sale	98,799	66,794
Recurring | Level I
Fair value of assets and liabilities
Loans held for sale	0	0
Recurring | Level II
Fair value of assets and liabilities
Loans held for sale	98,799	66,794
Recurring | Level III
Fair value of assets and liabilities
Loans held for sale	0	0
Recurring | Interest rate lock commitment
Fair value of assets and liabilities
Derivative asset	2,375	1,426
Recurring | Interest rate lock commitment | Level I
Fair value of assets and liabilities
Derivative asset	0	0
Recurring | Interest rate lock commitment | Level II
Fair value of assets and liabilities
Derivative asset	0	0
Recurring | Interest rate lock commitment | Level III
Fair value of assets and liabilities
Derivative asset	2,375	1,426
Recurring | Interest rate swap
Fair value of assets and liabilities
Derivative asset	290	268
Derivative liability	290	268
Recurring | Interest rate swap | Level I
Fair value of assets and liabilities
Derivative asset	0	0
Derivative liability	0	0
Recurring | Interest rate swap | Level II
Fair value of assets and liabilities
Derivative asset	290	268
Derivative liability	290	268
Recurring | Interest rate swap | Level III
Fair value of assets and liabilities
Derivative asset	0	0
Derivative liability	0	0
Recurring | Interest rate cap
Fair value of assets and liabilities
Derivative asset	50	33
Recurring | Interest rate cap | Level I
Fair value of assets and liabilities
Derivative asset	0	0
Recurring | Interest rate cap | Level II
Fair value of assets and liabilities
Derivative asset	50	33
Recurring | Interest rate cap | Level III
Fair value of assets and liabilities
Derivative asset	0	0
Recurring | Mortgage-backed security hedges
Fair value of assets and liabilities
Derivative liability	362	78
Recurring | Mortgage-backed security hedges | Level I
Fair value of assets and liabilities
Derivative liability	0	0
Recurring | Mortgage-backed security hedges | Level II
Fair value of assets and liabilities
Derivative liability	362	78
Recurring | Mortgage-backed security hedges | Level III
Fair value of assets and liabilities
Derivative liability	0	0
Recurring | U.S. Government Agency securities
Fair value of assets and liabilities
Securities available-for-sale	78,900	80,945
Recurring | U.S. Government Agency securities | Level I
Fair value of assets and liabilities
Securities available-for-sale	0	0
Recurring | U.S. Government Agency securities | Level II
Fair value of assets and liabilities
Securities available-for-sale	78,900	80,945
Recurring | U.S. Government Agency securities | Level III
Fair value of assets and liabilities
Securities available-for-sale	0	0
Recurring | U.S. Sponsored Mortgage-backed securities
Fair value of assets and liabilities
Securities available-for-sale	53,726	58,154
Recurring | U.S. Sponsored Mortgage-backed securities | Level I
Fair value of assets and liabilities
Securities available-for-sale	0	0
Recurring | U.S. Sponsored Mortgage-backed securities | Level II
Fair value of assets and liabilities
Securities available-for-sale	53,726	58,154
Recurring | U.S. Sponsored Mortgage-backed securities | Level III
Fair value of assets and liabilities
Securities available-for-sale	0	0
Recurring | Municipal securities
Fair value of assets and liabilities
Securities available-for-sale	80,041	75,842
Recurring | Municipal securities | Level I
Fair value of assets and liabilities
Securities available-for-sale	0	0
Recurring | Municipal securities | Level II
Fair value of assets and liabilities
Securities available-for-sale	51,868	52,933
Recurring | Municipal securities | Level III
Fair value of assets and liabilities
Securities available-for-sale	28,173	22,909
Recurring | Other securities
Fair value of assets and liabilities
Securities available-for-sale	9,418
Recurring | Other securities | Level I
Fair value of assets and liabilities
Securities available-for-sale	0
Recurring | Other securities | Level II
Fair value of assets and liabilities
Securities available-for-sale	9,418
Recurring | Other securities | Level III
Fair value of assets and liabilities
Securities available-for-sale	0
Recurring | Equity securities
Fair value of assets and liabilities
Securities available-for-sale	6,969	16,566
Recurring | Equity securities | Level I
Fair value of assets and liabilities
Securities available-for-sale	6,069	1,607
Recurring | Equity securities | Level II
Fair value of assets and liabilities
Securities available-for-sale	0	14,059
Recurring | Equity securities | Level III
Fair value of assets and liabilities
Securities available-for-sale	$ 900	$ 900

Borrowed Funds - Term Notes fro

Borrowed Funds - Term Notes from the FHLB (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Borrowed funds
Long-term notes from the FHLB	$ 2,533	$ 2,573
Fixed interest rate notes, originating between October 2006 and April 2007, due between October 2021 and April 2022, interest of between 5.18% and 5.20% payable monthly
Borrowed funds
Long-term notes from the FHLB	$ 1,770	1,798
Fixed interest rate notes, originating between October 2006 and April 2007, due between October 2021 and April 2022, interest of between 5.18% and 5.20% payable monthly | Minimum
Borrowed funds
Interest rate on debt security	5.18%
Fixed interest rate notes, originating between October 2006 and April 2007, due between October 2021 and April 2022, interest of between 5.18% and 5.20% payable monthly | Maximum
Borrowed funds
Interest rate on debt security	5.20%
Amortizing fixed interest rate note, originating February 2007, due February 2022, payable in monthly installments of $5 thousand, including interest of 5.22%
Borrowed funds
Long-term notes from the FHLB	$ 763	$ 775
Interest rate on debt security	5.22%
Monthly installments	$ 5

Fair Value of Financial Instr45

Fair Value of Financial Instruments - Recurring Level III Assets (Details) - Level III - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
December 31, 2017	$ 25,783	$ 9,344	$ 25,235	$ 7,981
Realized and unrealized gains included in earnings	63	(761)	949	548
Purchase of securities	6,232		6,232
Unrealized gain included in other comprehensive income (loss)	29	0	0	54
Unrealized loss included in other comprehensive income (loss)	(659)		(968)
June 30, 2018	31,448	8,583	31,448	8,583
Equity securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
December 31, 2017	900	300	900	300
Realized and unrealized gains included in earnings	0	0	0	0
Purchase of securities	0		0
Unrealized gain included in other comprehensive income (loss)	0	0	0	0
Unrealized loss included in other comprehensive income (loss)	0		0
June 30, 2018	900	300	900	300
Loans receivable | Interest rate lock commitment
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
December 31, 2017	2,312	2,855	1,426	1,546
Realized and unrealized gains included in earnings	63	(761)	949	548
Purchase of securities	0		0
Unrealized gain included in other comprehensive income (loss)	0	0	0	0
Unrealized loss included in other comprehensive income (loss)	0		0
June 30, 2018	2,375	2,094	2,375	2,094
Total debt securities | Municipal Bonds
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
December 31, 2017	22,571	6,189	22,909	6,135
Realized and unrealized gains included in earnings	0	0	0	0
Purchase of securities	6,232		6,232
Unrealized gain included in other comprehensive income (loss)	29	0	0	54
Unrealized loss included in other comprehensive income (loss)	(659)		(968)
June 30, 2018	$ 28,173	$ 6,189	$ 28,173	$ 6,189

Borrowed Funds - Subordinated D

Borrowed Funds - Subordinated Debt (Details) - USD ($)	Dec. 28, 2017	Jun. 30, 2014	Jun. 30, 2018	Mar. 31, 2007	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Subordinated Debt
Balance at end of period			$ 20,796,000		$ 20,796,000		$ 20,796,000		$ 33,524,000
Convertible subordinated debt			$ 12,700,000		12,700,000		12,700,000
Converted subordinated debt, shares issued			795,500
Interest expense on borrowed funds					542,000	$ 558,000	1,100,000	$ 1,109,000
Subordinated Debt
Subordinated Debt
Balance at end of period			$ 20,796,000		$ 20,796,000		20,796,000		33,524,000
Average balance during the period							32,015,000		33,524,000
Maximum month-end balance							$ 33,524,000		$ 33,524,000
Weighted-average rate during the year							6.77%		6.69%
Weighted-average rate at end of period			6.73%		6.73%		6.73%		6.70%
Interest expense on borrowed funds							$ 542,000	$ 558,000
Subordinated Debt | Subordinated Debentures
Subordinated Debt
Face amount of debt issued				$ 4,000,000
Subordinated Debt | Subordinated Debentures | LIBOR
Subordinated Debt
Variable rate basis spread				1.62%
Subordinated Debt | Convertible Subordinated Promissory Notes Due 2024
Subordinated Debt
Face amount of debt issued		$ 29,400,000
Debt instrument, increment amounts		100,000
Debt instrument, minimum investment amount		$ 1,000,000
Term of debt instrument		10 years
Debt instrument, maximum interest rate after fifth anniversary		9.00%
Debt instrument, minimum period from issuance that principal may be prepaid		5 years
Debt instrument, threshold consecutive trading days for conversion after first, second, third, fourth, and fifth anniversaries of the issuance		30 days
Debt instrument, conversion price (in dollars per share)	$ 16
Debt instrument, notice period of intent to prepay	20 days
Debt instrument, issuance threshold amount requiring consent of holders	$ 15,000,000
Debt instrument, redemption price percentage	100.00%
Debt instrument, required period before redemption	5 years
Subordinated Debt | Convertible Subordinated Promissory Notes Due 2024 | LIBOR
Subordinated Debt
Debt instrument, basis spread on variable rate after fifth anniversary		5.00%
Subordinated Debt | Convertible Subordinated Promissory Notes Due 2024 | Debtholder Investments Less Than Three Million Dollars
Subordinated Debt
Debt instrument, investment amount of holder		$ 3,000,000
Debt instrument, minimum ownership of common stock as percentage of principal acquired		30.00%
Interest rate on debt security		7.00%
Subordinated Debt | Convertible Subordinated Promissory Notes Due 2024 | Debtholder Investments Of Three Million Dollars Or Greater
Subordinated Debt
Debt instrument, investment amount of holder		$ 3,000,000
Debt instrument, minimum ownership of common stock as percentage of principal acquired		30.00%
Interest rate on debt security		7.50%
Subordinated Debt | Convertible Subordinated Promissory Notes Due 2024 | Debtholder Investments Of Ten Million Dollars Or Greater
Subordinated Debt
Debt instrument, investment amount of holder		$ 10,000,000
Interest rate on debt security		7.00%

Fair Value of Financial Instr47

Fair Value of Financial Instruments - Assets Measured at Fair Value on Nonrecurring Basis (Details) - Non-recurring - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	$ 14,196	$ 14,368
Impaired loans | Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	0	0
Impaired loans | Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	0	0
Impaired loans | Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	14,196	14,368
Other real estate owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	1,775	1,346
Other real estate owned | Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	0	0
Other real estate owned | Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	0	0
Other real estate owned | Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	$ 1,775	$ 1,346

Borrowed Funds - Summary of Mat

Borrowed Funds - Summary of Maturities (Details) $ in Thousands	Jun. 30, 2018USD ($)
Maturities of Borrowings and Subordinated Debt
2,018	$ 264,338
2,019	85
2,020	90
2,021	886
2,022	1,431
Thereafter	20,796
Total	$ 287,626

Fair Value of Financial Instr49

Fair Value of Financial Instruments - Quantitative Information About Level III Significant Unobservable Inputs (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Non-recurring | Impaired loans
Quantitative Information about Level III Fair Value Measurements
Fair value	$ 14,196	$ 14,368
Non-recurring | Impaired loans | Level I
Quantitative Information about Level III Fair Value Measurements
Fair value	0	0
Non-recurring | Impaired loans | Level II
Quantitative Information about Level III Fair Value Measurements
Fair value	0	0
Non-recurring | Impaired loans | Level III
Quantitative Information about Level III Fair Value Measurements
Fair value	$ 14,196	$ 14,368
Non-recurring | Impaired loans | Appraisal of collateral | Level III | Minimum
Unobservable Input
Appraisal adjustments	20.00%	20.00%
Liquidation expense	5.00%	5.00%
Non-recurring | Impaired loans | Appraisal of collateral | Level III | Maximum
Unobservable Input
Appraisal adjustments	62.00%	62.00%
Liquidation expense	10.00%	10.00%
Non-recurring | Other real estate owned
Quantitative Information about Level III Fair Value Measurements
Fair value	$ 1,775	$ 1,346
Non-recurring | Other real estate owned | Level I
Quantitative Information about Level III Fair Value Measurements
Fair value	0	0
Non-recurring | Other real estate owned | Level II
Quantitative Information about Level III Fair Value Measurements
Fair value	0	0
Non-recurring | Other real estate owned | Level III
Quantitative Information about Level III Fair Value Measurements
Fair value	$ 1,775	$ 1,346
Non-recurring | Other real estate owned | Appraisal of collateral | Level III | Minimum
Unobservable Input
Appraisal adjustments	20.00%	20.00%
Liquidation expense	5.00%	5.00%
Non-recurring | Other real estate owned | Appraisal of collateral | Level III | Maximum
Unobservable Input
Appraisal adjustments	30.00%	30.00%
Liquidation expense	10.00%	10.00%
Recurring | Municipal Bonds | Level III
Quantitative Information about Level III Fair Value Measurements
Fair value	$ 28,173	$ 22,909
Recurring | Municipal Bonds | Appraisal of bond | Level III | Minimum
Unobservable Input
Pull through rates	5.00%	5.00%
Recurring | Municipal Bonds | Appraisal of bond | Level III | Maximum
Unobservable Input
Pull through rates	15.00%	15.00%
Recurring | Interest rate lock commitment | Level III
Quantitative Information about Level III Fair Value Measurements
Fair value	$ 2,375	$ 1,426
Recurring | Interest rate lock commitment | Pricing model | Level III | Minimum
Unobservable Input
Pull through rates	76.00%	73.00%
Recurring | Interest rate lock commitment | Pricing model | Level III | Maximum
Unobservable Input
Pull through rates	87.00%	85.00%

Fair Value of Financial Instr50

Fair Value of Financial Instruments - Carrying Values and Estimated Fair Values (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 23,950	$ 20,305	$ 17,805	$ 17,340
Certificates of deposit with other banks	14,778	14,778
Securities available-for-sale	222,085	231,507
Equity securities	6,969	0
FHLB and other borrowings	266,830	152,169
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	23,950	20,305
Certificates of deposit with other banks	14,778	14,778
Securities available-for-sale	222,085	231,507
Equity securities	6,969
Loans held for sale	98,799	66,794
Loans, net	1,204,421	1,096,063
Mortgage servicing rights	177	182
Accrued interest receivable	6,267	5,296
Deposits	1,195,868	1,159,580
Repurchase agreements	20,240	22,403
Accrued interest payable	687	643
Subordinated debt	20,796	33,524
Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	23,950	20,305
Certificates of deposit with other banks	14,407	14,695
Securities available-for-sale	222,085	231,507
Equity securities	6,969
Loans held for sale	98,799	66,794
Loans, net	1,192,317	1,093,824
Mortgage servicing rights	177	182
Accrued interest receivable	6,267	5,296
Deposits	1,146,746	1,126,615
Repurchase agreements	20,240	22,403
Accrued interest payable	687	643
Subordinated debt	21,700	35,117
Quoted Prices in Active Markets for Identical Assets (Level I) | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	23,950	20,305
Certificates of deposit with other banks	0	0
Securities available-for-sale	0	1,607
Equity securities	6,069
Loans held for sale	0	0
Loans, net	0	0
Mortgage servicing rights	0	0
Accrued interest receivable	0	0
Deposits	0	0
Repurchase agreements	0	0
Accrued interest payable	0	0
Subordinated debt	0	0
Significant Other Observable Inputs (Level II) | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	0	0
Certificates of deposit with other banks	14,407	14,695
Securities available-for-sale	193,912	206,091
Equity securities	0
Loans held for sale	98,799	66,794
Loans, net	0	0
Mortgage servicing rights	0	0
Accrued interest receivable	1,453	1,241
Deposits	1,146,746	1,126,615
Repurchase agreements	20,240	22,403
Accrued interest payable	687	643
Subordinated debt	21,700	35,117
Significant Unobservable Inputs (Level III) | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	0	0
Certificates of deposit with other banks	0	0
Securities available-for-sale	28,173	23,809
Equity securities	900
Loans held for sale	0	0
Loans, net	1,192,317	1,093,824
Mortgage servicing rights	177	182
Accrued interest receivable	4,814	4,055
Deposits	0	0
Repurchase agreements	0	0
Accrued interest payable	0	0
Subordinated debt	0	0
Interest rate lock commitment | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	2,375	1,426
Interest rate lock commitment | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	2,375	1,426
Interest rate lock commitment | Quoted Prices in Active Markets for Identical Assets (Level I) | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	0	0
Interest rate lock commitment | Significant Other Observable Inputs (Level II) | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	0	0
Interest rate lock commitment | Significant Unobservable Inputs (Level III) | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	2,375	1,426
Interest rate swap | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	290	268
Derivative liability	290	268
Interest rate swap | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	290	268
Derivative liability	290	268
Interest rate swap | Quoted Prices in Active Markets for Identical Assets (Level I) | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	0	0
Derivative liability	0	0
Interest rate swap | Significant Other Observable Inputs (Level II) | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	290	268
Derivative liability	290	268
Interest rate swap | Significant Unobservable Inputs (Level III) | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	0	0
Derivative liability	0	0
Interest rate cap | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	50	33
Interest rate cap | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	50	33
Interest rate cap | Quoted Prices in Active Markets for Identical Assets (Level I) | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	0	0
Interest rate cap | Significant Other Observable Inputs (Level II) | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	50	33
Interest rate cap | Significant Unobservable Inputs (Level III) | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	0	0
Forward contracts | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
FHLB and other borrowings	266,830	152,169
Forward contracts | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
FHLB and other borrowings	266,857	152,190
Forward contracts | Quoted Prices in Active Markets for Identical Assets (Level I) | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
FHLB and other borrowings	0	0
Forward contracts | Significant Other Observable Inputs (Level II) | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
FHLB and other borrowings	266,857	152,190
Forward contracts | Significant Unobservable Inputs (Level III) | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
FHLB and other borrowings	0	0
Mortgage-backed security hedges | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	362	78
Mortgage-backed security hedges | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	362	78
Mortgage-backed security hedges | Quoted Prices in Active Markets for Identical Assets (Level I) | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	0	0
Mortgage-backed security hedges | Significant Other Observable Inputs (Level II) | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	362	78
Mortgage-backed security hedges | Significant Unobservable Inputs (Level III) | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	$ 0	$ 0

Stock Offerings (Details)

Stock Offerings (Details) - USD ($)

Apr. 20, 2017

Mar. 13, 2017

Jan. 05, 2017

Dec. 06, 2016

Mar. 09, 2016

Jun. 30, 2014

Sep. 08, 2011

Jun. 30, 2018

Jun. 30, 2017

Mar. 08, 2016

Dec. 31, 2017

Mar. 10, 2017

Stock offering

Common stock, par value (in dollars per share)

$ 1

$ 1

Proceeds from stock offering

$ 0

$ 4,931,000

Number of designated preferred shares (in shares)

783

783

Preferred stock, par value (in dollars per share)

$ 1,000

$ 1,000

Aggregate redemption price

$ 8,500,000

Series B Preferred Stock

Stock offering

Number of designated preferred shares (in shares)

400

Dividend rate

6.00%

Period from first, second, third, fourth, and fifth anniversary of original issue date that stock may be convertible

30 days

Conversion price (in dollars per share)

$ 16

Series C Preferred Stock

Stock offering

Number of designated preferred shares (in shares)

383.4

Dividend rate

6.50%

Period from first, second, third, fourth, and fifth anniversary of original issue date that stock may be convertible

30 days

Conversion price (in dollars per share)

$ 16

Preferred Class A

Stock offering

Stock offering (in shares)

8,500

Dividend rate

9.00%

1.00%

1.00%

SBLF capital received

$ 8,500,000

Preferred stock, par value (in dollars per share)

$ 1,000

Stock redeemed (in shares)

8,500

Liquidation amount per share (in dollars per share)

$ 1,000

Aggregate redemption price

$ 8,508,500

Rights Offering

Stock offering

Number of shares into which rights may be converted (in shares)

434,783

Stock offering (in shares)

434,783

Proceeds from issuance of common stock

$ 5,000,000

Private Placement

Stock offering

Stock offering (in shares)

1,913,044

Common stock, par value (in dollars per share)

$ 1

Sale of stock, price per share (in dollars per share)

$ 11.50

Proceeds from stock offering, gross

$ 22,000,000

Proceeds from stock offering

$ 20,500,000

Chief Executive Officer

Stock offering

Stock offering (in shares)

100,000

Chief Executive Officer | Investment Agreement

Stock offering

Stock offering (in shares)

9,001

Chief Executive Officer | Rights Offering

Stock offering

Stock offering (in shares)

90,999

Maximum | Chief Executive Officer | Investment Agreement

Stock offering

Number of shares into which rights may be converted (in shares)

100,000

Net Income Per Common Share (De

Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Numerator for basic earnings per share:
Net income	$ 2,831	$ 2,260	$ 5,425	$ 3,834
Less: Dividends on preferred stock	122	122	243	251
Net income available to common shareholders - basic	2,709	2,138	5,182	3,583
Numerator for diluted earnings per share:
Net income available to common shareholders - basic	2,709	2,138	5,182	3,583
Add: Dividends on convertible preferred stock	122	0	0	0
Add: Interest on subordinated debt (tax effected)	0	349	0	0
Net income available to common shareholders - diluted	$ 2,831	$ 2,487	$ 5,182	$ 3,583
Denominator:
Total average shares outstanding (in shares)	10,634,805	10,343,933	10,554,916	10,171,198
Effect of dilutive convertible preferred stock (in shares)	489,625	0	0	0
Effect of dilutive convertible subordinated debt (in shares)	0	1,837,500	0	0
Effect of dilutive stock options (in shares)	377,718	0	386,755	1,056
Total diluted average shares outstanding (in shares)	11,502,148	12,181,433	10,941,671	10,172,254
Earnings per share from continuing operations - basic (in dollars per share)	$ 0.25	$ 0.21	$ 0.49	$ 0.35
Earnings per share from continuing operations - diluted (in dollars per share)	$ 0.25	$ 0.20	$ 0.47	$ 0.35
Stock option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded form computation of earnings per share (in shares)	1,000,000	490,000	1,500,000	2,300,000
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded form computation of earnings per share (in shares)	37,000		31,000

Segment Reporting - Narrative (

Segment Reporting - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)segment	Jun. 30, 2017USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment			3
Net income (loss)	$ 2,831	$ 2,260	$ 5,425	$ 3,834
Mortgage Banking
Segment Reporting Information [Line Items]
Increase (decrease) in mortgage processing expense	249		247
Operating Segments | Commercial & Retail Banking
Segment Reporting Information [Line Items]
Net income (loss)	3,175	2,492	6,735	4,979
Increase (decrease) in net interest income	1,500		2,500
Increase (decrease) in loan interest and fee income	2,000		2,900
Increase (decrease) in taxable investment securities interest			595
Increase (decrease) in tax exempt loans and securities			505
Increase (decrease) in deposit interest	567		960
Increase (decrease) in FHLB and other borrowings interest income			589
Increase (decrease) in noninterest income	(495)		158
Increase (decrease) on commercial swap fee income	(270)
Increase (decrease) in performance of interest rate cap			228
Increase (decrease) in Visa debit card and interchange income			148
Increase (decrease) in gain on sale of portfolio loans	(203)
Increase (decrease) in noninterest expense	520		1,300
Increase (decrease) in salaries and emplyee benefits expense	617		1,500
Increase (decrease) in other operating expense	174		377
Increase (decrease) in data processing expense	(280)		(412)
Increase (decrease) in provision expense	158		75
Increase (decrease) in gain on sale of securities			(210)
Operating Segments | Mortgage Banking
Segment Reporting Information [Line Items]
Net income (loss)	1,074	$ 826	1,224	$ 942
Increase (decrease) in net interest income	152		283
Increase (decrease) in FHLB and other borrowings interest income	547		970
Increase (decrease) in noninterest income	(216)		(832)
Increase (decrease) in noninterest expense	(69)		(584)
Increase (decrease) in salaries and emplyee benefits expense	(321)		(859)
Increase (decrease) in interest and fees on loans	699		1,300
Increase (decrease) in mortgage fee income	215		(2,700)
Increase (decrease) open trade valuation of hedged derivative	1,400
Increase (decrease) in locked mortgage pipeline	900		2,100
Increase (decrease) in mortgage closed loan volume			$ (34,200)
Increase (decrease) in derivative performance	$ (429)
Increase (decrease) locked mortgage pipeline (percentage)	8.00%	3.00%	66.80%	3.30%
Increase (decrease) mortgage closed loan volume (percentage)			(4.40%)
Increase (decrease) in earn out payments	$ (205)		$ (329)
Increase (decrease) in gain on sale of securities			1,900
Operating Segments | Financial Holding Company
Segment Reporting Information [Line Items]
Net income (loss)	(1,418)	$ (1,058)	(2,534)	$ (2,087)
Increase (decrease) in net interest income	(16)		(9)
Increase (decrease) in noninterest income	182		525
Increase (decrease) in noninterest expense	468		689
Increase (decrease) in salaries and emplyee benefits expense	400		537
Increase (decrease) in income tax expense	(90)		(292)
Increase (decrease) in gain on sale of securities			186
Increase (decrease), holding gain on available for sale securities	18		70
Increase (decrease), intercompany services income	172		278
Increase (decrease) travel, entertainment, dues, and subscriptions expense	$ 121		$ 252

Segment Reporting (Details)

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues:
Interest income	$ 16,944	$ 13,814	$ 31,998	$ 26,882
Mortgage fee income	9,063	8,952	15,626	18,586
Other income	1,732	2,615	4,208	1,805
Total operating income	27,739	25,381	51,832	47,273
Expenses:
Interest expense	4,289	2,920	7,878	5,682
Salary and employee benefits	12,494	11,798	22,967	21,760
Provision for loan losses	605	523	1,079	1,041
Other expense	6,755	6,705	13,021	13,060
Total operating expenses	24,143	21,946	44,945	41,543
Income before income taxes	3,596	3,435	6,887	5,730
Income tax (benefit) - continuing operations	765	1,175	1,462	1,896
Net income	2,831	2,260	5,425	3,834
Preferred dividends	122	122	243	251
Net income available to common shareholders - basic	2,709	2,138	5,182	3,583
Capital expenditures	657	2,031	1,163	3,619
June 30, 2018			1,534,302	1,418,804
December 31, 2017	1,685,419	1,507,053	1,685,419	1,507,053
June 30, 2018			18,480	18,480
December 31, 2017	18,480	18,480	18,480	18,480
Operating Segments | Commercial & Retail Banking
Revenues:
Interest income	15,426	12,907	29,265	25,218
Mortgage fee income	154	188	292	373
Other income	1,068	1,529	2,848	2,609
Total operating income	16,648	14,624	32,405	28,200
Expenses:
Interest expense	3,164	2,168	5,838	4,288
Salary and employee benefits	3,884	3,267	7,453	5,924
Provision for loan losses	625	467	1,042	967
Other expense	4,968	5,065	9,527	9,716
Total operating expenses	12,641	10,967	23,860	20,895
Income before income taxes	4,007	3,657	8,545	7,305
Income tax (benefit) - continuing operations	832	1,165	1,810	2,326
Net income	3,175	2,492	6,735	4,979
Preferred dividends	0	0	0	0
Net income available to common shareholders - basic	3,175	2,492	6,735	4,979
Capital expenditures	608	1,732	1,011	2,600
June 30, 2018			1,531,496	1,415,735
December 31, 2017	1,681,115	1,503,809	1,681,115	1,503,809
June 30, 2018			1,598	1,598
December 31, 2017	1,598	1,598	1,598	1,598
Operating Segments | Mortgage Banking
Revenues:
Interest income	1,772	1,073	3,107	1,854
Mortgage fee income	9,152	8,937	15,825	18,574
Other income	706	1,137	1,223	(694)
Total operating income	11,630	11,147	20,155	19,734
Expenses:
Interest expense	1,081	534	1,808	838
Salary and employee benefits	6,826	7,147	12,242	13,101
Provision for loan losses	(20)	56	37	74
Other expense	2,296	2,044	4,418	4,143
Total operating expenses	10,183	9,781	18,505	18,156
Income before income taxes	1,447	1,366	1,650	1,578
Income tax (benefit) - continuing operations	373	540	426	636
Net income	1,074	826	1,224	942
Preferred dividends	0	0	0	0
Net income available to common shareholders - basic	1,074	826	1,224	942
Capital expenditures	29	282	107	973
June 30, 2018			149,323	122,242
December 31, 2017	191,933	157,197	191,933	157,197
June 30, 2018			16,882	16,882
December 31, 2017	16,882	16,882	16,882	16,882
Operating Segments | Financial Holding Company
Revenues:
Interest income	1	1	2	2
Mortgage fee income	0	0	0	0
Other income	1,489	1,307	3,043	2,518
Total operating income	1,490	1,308	3,045	2,520
Expenses:
Interest expense	542	558	1,100	1,109
Salary and employee benefits	1,784	1,384	3,272	2,735
Provision for loan losses	0	0	0	0
Other expense	1,022	954	1,981	1,829
Total operating expenses	3,348	2,896	6,353	5,673
Income before income taxes	(1,858)	(1,588)	(3,308)	(3,153)
Income tax (benefit) - continuing operations	(440)	(530)	(774)	(1,066)
Net income	(1,418)	(1,058)	(2,534)	(2,087)
Preferred dividends	122	122	243	251
Net income available to common shareholders - basic	(1,540)	(1,180)	(2,777)	(2,338)
Capital expenditures	19	17	44	46
June 30, 2018			184,599	180,335
December 31, 2017	187,917	181,235	187,917	181,235
June 30, 2018			0	0
December 31, 2017	0	0	0	0
Intercompany Eliminations
Revenues:
Interest income	(255)	(167)	(376)	(192)
Mortgage fee income	(243)	(173)	(491)	(361)
Other income	(1,531)	(1,358)	(2,906)	(2,628)
Total operating income	(2,029)	(1,698)	(3,773)	(3,181)
Expenses:
Interest expense	(498)	(340)	(868)	(553)
Salary and employee benefits	0	0	0	0
Provision for loan losses	0	0	0	0
Other expense	(1,531)	(1,358)	(2,905)	(2,628)
Total operating expenses	(2,029)	(1,698)	(3,773)	(3,181)
Income before income taxes	0	0	0	0
Income tax (benefit) - continuing operations	0	0	0	0
Net income	0	0	0	0
Preferred dividends	0	0	0	0
Net income available to common shareholders - basic	0	0	0	0
Capital expenditures	0	0	0	0
June 30, 2018			(331,116)	(299,508)
December 31, 2017	(375,546)	(335,188)	(375,546)	(335,188)
June 30, 2018			0	0
December 31, 2017	$ 0	$ 0	$ 0	$ 0

Pension and Supplemental Exec55

Pension and Supplemental Executive Retirement Plans - Defined Benefit Plan Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	May 31, 2014
Weighted average assumptions used to determine the benefit obligation
Discount rate used to re-measure pension obligation					4.46%
Components of net periodic pension cost
Service cost	$ 0	$ 0	$ 0	$ 0
Interest cost	88	90	176	180
Expected return on plan assets	(93)	(86)	(186)	(172)
Amortization of net actuarial loss	77	60	153	120
Amortization of prior service costs	0	0	0	0
Net periodic pension cost	72	64	143	128
Contributions Paid	$ 79	$ 58	$ 158	$ 116

Pension and Supplemental Exec56

Pension and Supplemental Executive Retirement Plans - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)installment	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)installment	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)	May 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Discount rate used to re-measure pension obligation						4.46%
Service cost	$ 0	$ 0	$ 0	$ 0
Supplemental Employee Retirement Plan
Defined Benefit Plan Disclosure [Line Items]
Discount rate used to re-measure pension obligation	4.00%		4.00%
Benefit obligation	$ 1,800		$ 1,800
Number of equal consecutive installments | installment	180		180
Consecutive installments, amount	$ 10		$ 10
Accrued liability	189		189		$ 1
Service cost	$ 94		$ 188

Comprehensive Income - Reclassi

Comprehensive Income - Reclassifications (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Comprehensive Income
Gain on sale of securities, net	$ 0	$ 167	$ 326	$ 350
Salaries and benefits	(12,494)	(11,798)	(22,967)	(21,760)
Income before income taxes	3,596	3,435	6,887	5,730
Income tax expense	(765)	(1,175)	(1,462)	(1,896)
Net income	2,831	2,260	5,425	3,834
Amount reclassified from AOCI
Comprehensive Income
Net income	(56)	64	126	138
Available-for-sale securities | Amount reclassified from AOCI
Comprehensive Income
Gain on sale of securities, net	0	167	326	350
Income before income taxes	0	167	326	350
Income tax expense	0	(67)	(88)	(140)
Net income	0	100	238	210
Defined benefit pension plan items | Amount reclassified from AOCI
Comprehensive Income
Salaries and benefits	(77)	(60)	(153)	(120)
Income before income taxes	(77)	(60)	(153)	(120)
Income tax expense	21	24	41	48
Net income	$ (56)	$ (36)	$ (112)	$ (72)

Comprehensive Income - Componen

Comprehensive Income - Components of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Accumulated Other Comprehensive Income (AOCI)
Beginning balance			$ 150,192	$ 145,625
Total other comprehensive income (loss)	$ (84)	$ 1,130	(3,569)	1,387
Stranded AOCI			0
Mark to market on equity positions					$ 0
Ending balance	165,795	146,834	165,795	146,834
Unrealized gains (losses) on available for-sale securities
Accumulated Other Comprehensive Income (AOCI)
Beginning balance	(3,588)	(1,439)	(5)	(1,598)
Other comprehensive loss before reclassification	(648)	1,530	(3,895)	1,799
Amounts reclassified from AOCI	0	(100)	(238)	(210)
Total other comprehensive income (loss)	(648)	1,430	(4,133)	1,589
Stranded AOCI			0
Mark to market on equity positions					(98)
Ending balance	(4,236)	(9)	(4,236)	(9)
Defined benefit pension plan items
Accumulated Other Comprehensive Income (AOCI)
Beginning balance	(3,629)	(2,581)	(2,983)	(2,679)
Other comprehensive loss before reclassification	508	(336)	452	(274)
Amounts reclassified from AOCI	56	36	112	72
Total other comprehensive income (loss)	564	(300)	564	(202)
Stranded AOCI			(646)
Mark to market on equity positions					0
Ending balance	(3,065)	(2,881)	(3,065)	(2,881)
Accumulated Other Comprehensive (Loss)
Accumulated Other Comprehensive Income (AOCI)
Beginning balance	(7,217)	(4,020)	(2,988)	(4,277)
Other comprehensive loss before reclassification	(140)	1,194	(3,443)	1,525
Amounts reclassified from AOCI	56	(64)	(126)	(138)
Total other comprehensive income (loss)	(84)	1,130	(3,569)	1,387
Stranded AOCI			(646)
Mark to market on equity positions					$ (98)
Ending balance	$ (7,301)	$ (2,890)	$ (7,301)	$ (2,890)