Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | (3) Composition of loans, net of deferred fees and costs, by primary loan portfolio class follows: (in thousands) March 31, 2017 December 31, 2016 Commercial and industrial $ 736,633 $ 736,841 Construction and development, excluding undeveloped land 165,832 192,348 Undeveloped land 21,207 21,496 Real estate mortgage: Commercial investment 546,957 538,886 Owner occupied commercial 406,209 408,292 1-4 family residential 244,349 249,498 Home equity - first lien 51,076 55,325 Home equity - junior lien 65,806 67,519 Subtotal: Real estate mortgage 1,314,397 1,319,520 Consumer 34,709 35,170 Total loans $ 2,272,778 $ 2,305,375 The following table presents the balance in the recorded investment in loans and allowance for loan losses by portfolio segment and based on impairment evaluation method as of March 31, 2017 December 31, 2016. (in thousands) Type of loan Construction and development Commercial excluding and undeveloped Undeveloped Real estate March 31, 2017 industrial land land mortgage Consumer Total Loans $ 736,633 $ 165,832 $ 21,207 $ 1,314,397 $ 34,709 $ 2,272,778 Loans collectively evaluated for impairment $ 733,790 $ 165,388 $ 20,733 $ 1,311,537 $ 34,651 $ 2,266,099 Loans individually evaluated for impairment $ 2,843 $ 444 $ 474 $ 2,268 $ 58 $ 6,087 Loans acquired with deteriorated credit quality $ - $ - $ - $ 592 $ - $ 592 Construction and development Commercial excluding and undeveloped Undeveloped Real estate industrial land land mortgage Consumer Total Allowance for loan losses At December 31, 2016 $ 10,483 $ 1,923 $ 684 $ 10,573 $ 344 $ 24,007 Provision (credit) 789 202 (32 ) (75 ) 16 900 Charge-offs (450 ) - - (34 ) (121 ) (605 ) Recoveries 45 - - 27 107 179 At March 31, 2017 $ 10,867 $ 2,125 $ 652 $ 10,491 $ 346 $ 24,481 Allowance for loans collectively evaluated for impairment $ 9,737 $ 2,125 $ 652 $ 10,491 $ 288 $ 23,293 Allowance for loans individually evaluated for impairment $ 1,130 $ - $ - $ - $ 58 $ 1,188 Allowance for loans acquired with deteriorated credit quality $ - $ - $ - $ - $ - $ - (in thousands) Type of loan Construction and development Commercial excluding and undeveloped Undeveloped Real estate December 31, 2016 industrial land land mortgage Consumer Total Loans $ 736,841 $ 192,348 $ 21,496 $ 1,319,520 $ 35,170 $ 2,305,375 Loans collectively evaluated for impairment $ 734,139 $ 191,810 $ 21,022 $ 1,316,400 $ 35,111 $ 2,298,482 Loans individually evaluated for impairment $ 2,682 $ 538 $ 474 $ 2,516 $ 59 $ 6,269 Loans acquired with deteriorated credit quality $ 20 $ - $ - $ 604 $ - $ 624 Construction and development Commercial excluding and undeveloped Undeveloped Real estate industrial land land mortgage Consumer Total Allowance for loan losses At December 31, 2015 $ 8,645 $ 1,760 $ 814 $ 10,875 $ 347 $ 22,441 Provision (credit) 2,775 275 (130 ) (68 ) 148 3,000 Charge-offs (1,216 ) (133 ) - (576 ) (568 ) (2,493 ) Recoveries 279 21 - 342 417 1,059 At December 31, 2016 $ 10,483 $ 1,923 $ 684 $ 10,573 $ 344 $ 24,007 Allowance for loans collectively evaluated for impairment $ 9,276 $ 1,923 $ 683 $ 10,573 $ 285 $ 22,740 Allowance for loans individually evaluated for impairment $ 1,207 $ - $ 1 $ - $ 59 $ 1,267 Allowance for loans acquired with deteriorated credit quality $ - $ - $ - $ - $ - $ - The considerations by Bancorp in computing its allowance for loan losses are determined based on the various risk characteristics of each loan segment. Relevant risk characteristics are as follows: ● Commercial and industrial loans: Loans in this category are made to businesses. Generally these loans are secured by assets of the business and repayment is expected from the cash flows of the business. A decline in the strength of the business or a weakened economy and resultant decreased consumer and/or business spending may ● Construction and development, excluding undeveloped land: Loans in this category primarily include owner-occupied and investment construction loans and commercial development projects. In most cases, construction loans require only interest to be paid during construction. Upon completion or stabilization, the construction loan may ● Undeveloped land: Loans in this category are secured by land acquired for development by the borrower, but for which no development has yet taken place. Credit risk is primarily dependent upon the financial strength of the borrower, and can be affected by market conditions and time to develop land for ultimate sale. Credit risk is also affected by availability of development financing, to the extent such financing is not being provided by Bancorp. ● Real estate mortgage: Loans in this category are made to and secured by owner-occupied residential real estate, owner-occupied real estate used for business purposes, and income-producing investment properties. For owner occupied residential and commercial real estate, repayment is dependent on financial strength of the borrower. For income-producing investment properties, repayment is dependent on financial strength of tenants may may ● Consumer: Loans in this category may Bancorp has loans that were acquired for which there was, at acquisition, evidence of deterioration of credit quality since origination and for which it was probable that all contractually required payments would not be collected. The carrying amount of those loans is included in the balance sheet amounts of loans at March 31, 2017 December 31, 2016. (in thousands) Accretable discount Non- accretable discount Balance at December 31, 2015 $ 3 $ 189 Accretion (3 ) (41 ) Reclassifications from (to) non-accretable discount - - Disposals - - Balance at December 31, 2016 $ - $ 148 Accretion - - Reclassifications from (to) non-accretable discount - - Disposals - - Balance at March 31, 2017 $ - $ 148 The following tables present loans individually evaluated for impairment as of March 31, 2017 December 31, 2016. (in thousands) Unpaid Average Recorded principal Related recorded March 31, 2017 investment balance allowance investment Loans with no related allowance recorded: Commercial and industrial $ 199 $ 708 $ - $ 261 Construction and development, excluding undeveloped land 444 614 - 491 Undeveloped land 474 507 - 353 Real estate mortgage Commercial investment 169 169 - 138 Owner occupied commercial 1,236 1,674 - 1,139 1-4 family residential 688 688 - 792 Home equity - first lien - - - - Home equity - junior lien 175 175 - 324 Subtotal: Real estate mortgage 2,268 2,706 - 2,393 Consumer - - - - Subtotal $ 3,385 $ 4,535 $ - $ 3,498 Loans with an allowance recorded: Commercial and industrial $ 2,644 $ 3,117 $ 1,130 $ 2,501 Construction and development, excluding undeveloped land - - - - Undeveloped land - - - 121 Real estate mortgage Commercial investment - - - - Owner occupied commercial - - - - 1-4 family residential - - - - Home equity - first lien - - - - Home equity - junior lien - - - - Subtotal: Real estate mortgage - - - - Consumer 58 58 58 58 Subtotal $ 2,702 $ 3,175 $ 1,188 $ 2,680 Total: Commercial and industrial $ 2,843 $ 3,825 $ 1,130 $ 2,762 Construction and development, excluding undeveloped land 444 614 - 491 Undeveloped land 474 507 - 474 Real estate mortgage Commercial investment 169 169 - 138 Owner occupied commercial 1,236 1,674 - 1,139 1-4 family residential 688 688 - 792 Home equity - first lien - - - - Home equity - junior lien 175 175 - 324 Subtotal: Real estate mortgage 2,268 2,706 - 2,393 Consumer 58 58 58 58 Total $ 6,087 $ 7,710 $ 1,188 $ 6,178 (in thousands) Unpaid Average Recorded principal Related recorded December 31, 2016 investment balance allowance investment Loans with no related allowance recorded: Commercial and industrial $ 322 $ 465 $ - $ 1,947 Construction and development, excluding undeveloped land 538 708 - 108 Undeveloped land 233 265 - 76 Real estate mortgage Commercial investment 107 107 - 193 Owner occupied commercial 1,042 1,479 - 1,356 1-4 family residential 984 985 - 980 Home equity - first lien - - - 3 Home equity - junior lien 383 383 - 315 Subtotal: Real estate mortgage 2,516 2,954 - 2,847 Consumer - - - 18 Subtotal $ 3,609 $ 4,392 $ - $ 4,996 Loans with an allowance recorded: Commercial and industrial $ 2,360 $ 2,835 $ 1,207 $ 1,619 Construction and development, excluding undeveloped land - - - 182 Undeveloped land 241 241 1 149 Real estate mortgage Commercial investment - - - - Owner occupied commercial - - - 554 1-4 family residential - - - - Home equity - first lien - - - - Home equity - junior lien - - - - Subtotal: Real estate mortgage - - - 554 Consumer 59 59 59 63 Subtotal $ 2,660 $ 3,135 $ 1,267 $ 2,567 Total: Commercial and industrial $ 2,682 $ 3,300 $ 1,207 $ 3,566 Construction and development, excluding undeveloped land 538 708 - 290 Undeveloped land 474 506 1 225 Real estate mortgage - - - - Commercial investment 107 107 - 193 Owner occupied commercial 1,042 1,479 - 1,910 1-4 family residential 984 985 - 980 Home equity - first lien - - - 3 Home equity - junior lien 383 383 - 315 Subtotal: Real estate mortgage 2,516 2,954 - 3,401 Consumer 59 59 59 81 Total $ 6,269 $ 7,527 $ 1,267 $ 7,563 Differences between recorded investment amounts and unpaid principal balance amounts less related allowance are due to partial charge-offs which have occurred over the life of loans. Impaired loans include non-accrual loans and accruing loans accounted for as troubled debt restructurings (TDRs), which continue to accrue interest. Non-performing loans include the balance of impaired loans plus any loans over 90 90 March 31, 2017, $438 December 31, 2016, March 31, 2016. The following table presents the recorded investment in non-accrual loans as of March 31, 2017 December 31, 2016. (in thousands) March 31, 2017 December 31, 2016 Commercial and industrial $ 1,913 $ 1,767 Construction and development, excluding undeveloped land 444 538 Undeveloped land 474 474 Real estate mortgage Commercial investment 169 107 Owner occupied commercial 1,236 1,042 1-4 family residential 688 984 Home equity - first lien - - Home equity - junior lien 175 383 Subtotal: Real estate mortgage 2,268 2,516 Consumer - - Total $ 5,099 $ 5,295 may At March 31, 2017 December 31, 2016, $988 $974 three March 31, 2016. $38,000 March 31, 2017 three March 31, 2017. $39,000. No loans classified and reported as troubled debt restructured within the twelve March 31, 2017 three March 31, 2017. March 31, 2017, $339 $207 December 31, 2016. At March 31, 2017 December 31, 2016, At March 31, 2017 five $639 $30 $524 March 31, 2017. The following table presents the aging of the recorded investment in loans as of March 31, 2017 December 31, 2016. Recorded (in thousands) 90 or more investment days past > 90 days 30-59 days 60-89 days due (includes) Total Total and March 31, 2017 Current past due past due non-accrual) past due loans accruing Commercial and industrial $ 730,458 $ 4,262 $ - $ 1,913 $ 6,175 $ 736,633 $ - Construction and development, excluding undeveloped land 165,363 25 - 444 469 165,832 - Undeveloped land 20,733 - - 474 474 21,207 - Real estate mortgage Commercial investment 545,153 903 732 169 1,804 546,957 - Owner occupied commercial 404,628 345 - 1,236 1,581 406,209 - 1-4 family residential 240,903 2,362 396 688 3,446 244,349 - Home equity - first lien 51,073 3 - - 3 51,076 - Home equity - junior lien 65,463 168 - 175 343 65,806 - Subtotal: Real estate mortgage 1,307,220 3,781 1,128 2,268 7,177 1,314,397 - Consumer 34,707 - 2 - 2 34,709 - Total $ 2,258,481 $ 8,068 $ 1,130 $ 5,099 $ 14,297 $ 2,272,778 $ - December 31, 2016 Commercial and industrial $ 734,682 $ 84 $ 290 $ 1,785 $ 2,159 $ 736,841 $ 18 Construction and development, excluding undeveloped land 191,810 - - 538 538 192,348 - Undeveloped land 21,022 - - 474 474 21,496 - Real estate mortgage Commercial investment 537,998 631 64 193 888 538,886 86 Owner occupied commercial 406,726 342 - 1,224 1,566 408,292 182 1-4 family residential 246,730 1,174 576 1,018 2,768 249,498 34 Home equity - first lien 55,027 231 21 46 298 55,325 46 Home equity - junior lien 66,911 99 126 383 608 67,519 72 Subtotal: Real estate mortgage 1,313,392 2,477 787 2,864 6,128 1,319,520 420 Consumer 34,965 28 105 72 205 35,170 - Total $ 2,295,871 $ 2,589 $ 1,182 $ 5,733 $ 9,504 $ 2,305,375 $ 438 Consistent with regulatory guidance, Bancorp categorizes loans into credit risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends. Pass-rated loans included all risk-rated loans other than those classified as other assets especially mentioned, substandard, and doubtful, which are defined below: ● Other assets especially mentioned (“OAEM”): Loans classified as OAEM have potential weaknesses that deserve management's close attention. These potential weaknesses may ● Substandard: Loans classified as substandard are inadequately protected by the paying capacity of the obligor or of collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize repayment of the debt. Default is a distinct possibility if the deficiencies are not corrected. ● Substandard non-performing: Loans classified as substandard non-performing have all the characteristics of substandard loans and have been placed on non-accrual status or have been accounted for as troubled debt restructurings. Loans are placed on non-accrual status when prospects for recovering both principal and accrued interest are considered doubtful or when a default of principal or interest has existed for 90 ● Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or repayment in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. As of March 31, 2017 December 31, 2016, (in thousands) Substandard Total March 31, 2017 Pass OAEM Substandard non-performing Doubtful loans Commercial and industrial $ 710,959 $ 16,489 $ 6,342 $ 2,843 $ - $ 736,633 Construction and development, excluding undeveloped land 165,063 - 325 444 - 165,832 Undeveloped land 20,703 - 30 474 - 21,207 Real estate mortgage Commercial investment 546,391 375 22 169 - 546,957 Owner occupied commercial 395,895 6,989 2,089 1,236 - 406,209 1-4 family residential 242,341 431 889 688 - 244,349 Home equity - first lien 50,901 - - 175 - 51,076 Home equity - junior lien 65,429 53 324 - - 65,806 Subtotal: Real estate mortgage 1,300,957 7,848 3,324 2,268 - 1,314,397 Consumer 34,545 106 - 58 - 34,709 Total $ 2,232,227 $ 24,443 $ 10,021 $ 6,087 $ - $ 2,272,778 December 31, 2016 Commercial and industrial $ 714,025 $ 14,266 $ 5,850 $ 2,700 $ - $ 736,841 Construction and development, excluding undeveloped land 191,455 - 355 538 - 192,348 Undeveloped land 21,022 - - 474 - 21,496 Real estate mortgage Commercial investment 538,688 - 5 193 - 538,886 Owner occupied commercial 396,997 7,960 2,111 1,224 - 408,292 1-4 family residential 247,888 - 592 1,018 - 249,498 Home equity - first lien 55,279 - - 46 - 55,325 Home equity - junior lien 66,710 - 426 383 - 67,519 Subtotal: Real estate mortgage 1,305,562 7,960 3,134 2,864 - 1,319,520 Consumer 35,039 - - 131 - 35,170 Total $ 2,267,103 $ 22,226 $ 9,339 $ 6,707 $ - $ 2,305,375 |