|
LOANS (Tables)
|
12 Months Ended |
|
Dec. 31, 2012
|
| LOANS [Abstract] |
|
| Year-end portfolio loans |
Year-end portfolio loans were as follows (dollars in thousands):
| |
|
December 31,
2012
|
|
|
December 31,
2011
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
264,690 |
|
|
$ |
227,051 |
|
| |
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
Residential developed |
|
|
26,090 |
|
|
|
33,829 |
|
Unsecured to residential developers |
|
|
557 |
|
|
|
5,937 |
|
Vacant and unimproved |
|
|
56,525 |
|
|
|
66,046 |
|
Commercial development |
|
|
1,799 |
|
|
|
4,586 |
|
Residential improved |
|
|
75,813 |
|
|
|
82,337 |
|
Commercial improved |
|
|
255,738 |
|
|
|
304,070 |
|
Manufacturing and industrial |
|
|
81,447 |
|
|
|
71,462 |
|
Total commercial real estate |
|
|
497,969 |
|
|
|
568,267 |
|
| |
|
|
|
|
|
|
|
|
Consumer: |
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
182,625 |
|
|
|
156,891 |
|
Unsecured |
|
|
1,683 |
|
|
|
1,952 |
|
Home equity |
|
|
92,764 |
|
|
|
101,074 |
|
Other secured |
|
|
12,617 |
|
|
|
15,740 |
|
Total consumer |
|
|
289,689 |
|
|
|
275,657 |
|
| |
|
|
|
|
|
|
|
|
Total loans |
|
|
1,052,348 |
|
|
|
1,070,975 |
|
Allowance for loan losses |
|
|
(23,739 |
) |
|
|
(31,641 |
) |
| |
|
|
|
|
|
|
|
|
| |
|
$ |
1,028,609 |
|
|
$ |
1,039,334 |
|
|
| Activity in allowance for loan losses by portfolio segment |
The following tables present the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2012 and 2011 (dollars in thousands):
December 31, 2012: |
|
Commercial
and
Industrial
|
|
|
Commercial
Real Estate
|
|
|
Consumer |
|
|
Unallocated |
|
|
Total |
|
Beginning balance |
|
$ |
6,313 |
|
|
$ |
20,475 |
|
|
$ |
4,821 |
|
|
$ |
32 |
|
|
$ |
31,641 |
|
Charge-offs |
|
|
(1,245 |
) |
|
|
(3,206 |
) |
|
|
(3,045 |
) |
|
|
--- |
|
|
|
(7,496 |
) |
Recoveries |
|
|
547 |
|
|
|
5,840 |
|
|
|
307 |
|
|
|
--- |
|
|
|
6,694 |
|
Provision for loan losses |
|
|
844 |
|
|
|
(9,652 |
) |
|
|
1,704 |
|
|
|
4 |
|
|
|
(7,100 |
) |
Ending balance |
|
$ |
6,459 |
|
|
$ |
13,457 |
|
|
$ |
3,787 |
|
|
$ |
36 |
|
|
$ |
23,739 |
|
December 31, 2011: |
|
Commercial
and
Industrial
|
|
|
Commercial
Real Estate
|
|
|
Consumer |
|
|
Unallocated |
|
|
Total |
|
Beginning balance |
|
$ |
7,012 |
|
|
$ |
34,973 |
|
|
$ |
5,415 |
|
|
$ |
26 |
|
|
$ |
47,426 |
|
Charge-offs |
|
|
(2,935 |
) |
|
|
(10,981 |
) |
|
|
(2,535 |
) |
|
|
--- |
|
|
|
(16,451 |
) |
Recoveries |
|
|
1,727 |
|
|
|
3,343 |
|
|
|
296 |
|
|
|
--- |
|
|
|
5,366 |
|
Provision for loan losses |
|
|
509 |
|
|
|
(6,860 |
) |
|
|
1,645 |
|
|
|
6 |
|
|
|
(4,700 |
) |
Ending balance |
|
$ |
6,313 |
|
|
$ |
20,475 |
|
|
$ |
4,821 |
|
|
$ |
32 |
|
|
$ |
31,641 |
|
|
| Allowance for loan losses and recorded investment in loans by portfolio segment based on impairment method |
The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2012 and 2011 (dollars in thousands):
December 31, 2012 |
|
Commercial
and
Industrial
|
|
|
Commercial
Real Estate
|
|
|
Consumer |
|
|
Unallocated |
|
|
Total |
|
Allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending allowance attributable to loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually reviewed for impairment |
|
$ |
2,920 |
|
|
$ |
2,418 |
|
|
$ |
716 |
|
|
$ |
--- |
|
|
$ |
6,054 |
|
Collectively evaluated for impairment |
|
|
3,539 |
|
|
|
11,039 |
|
|
|
3,071 |
|
|
|
36 |
|
|
|
17,685 |
|
Total ending allowance balance |
|
$ |
6,459 |
|
|
$ |
13,457 |
|
|
$ |
3,787 |
|
|
$ |
36 |
|
|
$ |
23,739 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually reviewed for impairment |
|
$ |
14,390 |
|
|
$ |
54,831 |
|
|
$ |
14,086 |
|
|
$ |
--- |
|
|
$ |
83,307 |
|
Collectively evaluated for impairment |
|
|
250,300 |
|
|
|
443,138 |
|
|
|
275,603 |
|
|
|
--- |
|
|
|
969,041 |
|
Total ending loans balance |
|
$ |
264,690 |
|
|
$ |
497,969 |
|
|
$ |
289,689 |
|
|
$ |
--- |
|
|
$ |
1,052,348 |
|
December 31, 2011 |
|
Commercial
and
Industrial
|
|
|
Commercial
Real Estate
|
|
|
Consumer |
|
|
Unallocated |
|
|
Total |
|
Allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending allowance attributable to loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually reviewed for impairment |
|
$ |
3,478 |
|
|
$ |
4,367 |
|
|
$ |
1,752 |
|
|
$ |
--- |
|
|
$ |
9,597 |
|
Collectively evaluated for impairment |
|
|
2,835 |
|
|
|
16,108 |
|
|
|
3,069 |
|
|
|
32 |
|
|
|
22,044 |
|
Total ending allowance balance |
|
$ |
6,313 |
|
|
$ |
20,475 |
|
|
$ |
4,821 |
|
|
$ |
32 |
|
|
$ |
31,641 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually reviewed for impairment |
|
$ |
17,331 |
|
|
$ |
52,195 |
|
|
$ |
15,085 |
|
|
$ |
--- |
|
|
$ |
84,611 |
|
Collectively evaluated for impairment |
|
|
209,720 |
|
|
|
516,072 |
|
|
|
260,572 |
|
|
|
--- |
|
|
|
986,364 |
|
Total ending loans balance |
|
$ |
227,051 |
|
|
$ |
568,267 |
|
|
$ |
275,657 |
|
|
$ |
--- |
|
|
$ |
1,070,975 |
|
|
| Loans individually evaluated for impairment by class of loans |
The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2012 (dollars in thousands):
| |
|
Unpaid Principal
Balance
|
|
|
Recorded
Investment
|
|
|
Allowance
Allocated
|
|
With no related allowance recorded: |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
2,515 |
|
|
$ |
2,512 |
|
|
$ |
--- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential developed |
|
|
7,136 |
|
|
|
6,283 |
|
|
|
--- |
|
Unsecured to residential developers |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Vacant and unimproved |
|
|
2,321 |
|
|
|
2,136 |
|
|
|
--- |
|
Commercial development |
|
|
213 |
|
|
|
213 |
|
|
|
--- |
|
Residential improved |
|
|
3,293 |
|
|
|
3,019 |
|
|
|
--- |
|
Commercial improved |
|
|
7,268 |
|
|
|
6,127 |
|
|
|
--- |
|
Manufacturing and industrial |
|
|
3,686 |
|
|
|
3,686 |
|
|
|
--- |
|
| |
|
|
23,917 |
|
|
|
21,464 |
|
|
|
--- |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
4,614 |
|
|
|
3,062 |
|
|
|
--- |
|
Unsecured |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Home equity |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Other secured |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
| |
|
|
4,614 |
|
|
|
3,062 |
|
|
|
--- |
|
| |
|
$ |
31,046 |
|
|
$ |
27,038 |
|
|
$ |
--- |
|
With an allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
11,878 |
|
|
$ |
11,878 |
|
|
$ |
2,920 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential developed |
|
|
1,524 |
|
|
|
1,524 |
|
|
|
337 |
|
Unsecured to residential developers |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Vacant and unimproved |
|
|
1,688 |
|
|
|
1,688 |
|
|
|
34 |
|
Commercial development |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Residential improved |
|
|
10,063 |
|
|
|
10,063 |
|
|
|
842 |
|
Commercial improved |
|
|
15,386 |
|
|
|
15,386 |
|
|
|
1,071 |
|
Manufacturing and industrial |
|
|
4,706 |
|
|
|
4,706 |
|
|
|
134 |
|
| |
|
|
33,367 |
|
|
|
33,367 |
|
|
|
2,418 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
10,220 |
|
|
|
10,220 |
|
|
|
664 |
|
Unsecured |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Home equity |
|
|
804 |
|
|
|
804 |
|
|
|
52 |
|
Other secured |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
| |
|
|
11,024 |
|
|
|
11,024 |
|
|
|
716 |
|
| |
|
$ |
56,269 |
|
|
$ |
56,269 |
|
|
$ |
6,054 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
87,315 |
|
|
$ |
83,307 |
|
|
$ |
6,054 |
|
The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2011 (dollars in thousands):
| |
|
Unpaid
Principal
Balance
|
|
|
Recorded
Investment
|
|
|
Allowance
Allocated
|
|
With no related allowance recorded: |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
3,485 |
|
|
$ |
3,485 |
|
|
$ |
--- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential developed |
|
|
6,432 |
|
|
|
2,021 |
|
|
|
--- |
|
Unsecured to residential developers |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Vacant and unimproved |
|
|
5,226 |
|
|
|
4,265 |
|
|
|
--- |
|
Commercial development |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Residential improved |
|
|
1,943 |
|
|
|
1,858 |
|
|
|
--- |
|
Commercial improved |
|
|
5,428 |
|
|
|
5,162 |
|
|
|
--- |
|
Manufacturing and industrial |
|
|
3,997 |
|
|
|
3,997 |
|
|
|
--- |
|
| |
|
|
23,026 |
|
|
|
17,303 |
|
|
|
--- |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Unsecured |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Home equity |
|
|
200 |
|
|
|
200 |
|
|
|
--- |
|
Other secured |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
| |
|
|
200 |
|
|
|
200 |
|
|
|
--- |
|
| |
|
$ |
26,711 |
|
|
$ |
20,988 |
|
|
$ |
--- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
With an allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
17,052 |
|
|
$ |
13,846 |
|
|
$ |
3,478 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential developed |
|
|
4,941 |
|
|
|
4,941 |
|
|
|
1,960 |
|
Unsecured to residential developers |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Vacant and unimproved |
|
|
3,378 |
|
|
|
2,462 |
|
|
|
154 |
|
Commercial development |
|
|
220 |
|
|
|
220 |
|
|
|
17 |
|
Residential improved |
|
|
12,312 |
|
|
|
11,809 |
|
|
|
1,176 |
|
Commercial improved |
|
|
10,590 |
|
|
|
10,555 |
|
|
|
844 |
|
Manufacturing and industrial |
|
|
4,905 |
|
|
|
4,905 |
|
|
|
216 |
|
| |
|
|
36,346 |
|
|
|
34,892 |
|
|
|
4,367 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
14,235 |
|
|
|
14,114 |
|
|
|
1,713 |
|
Unsecured |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Home equity |
|
|
771 |
|
|
|
771 |
|
|
|
39 |
|
Other secured |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
| |
|
|
15,006 |
|
|
|
14,885 |
|
|
|
1,752 |
|
| |
|
$ |
68,404 |
|
|
$ |
63,623 |
|
|
$ |
9,597 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
95,115 |
|
|
$ |
84,611 |
|
|
$ |
9,597 |
|
|
| Average balances of impaired loans and interest recognized on impaired loans |
The following table presents information regarding average balances of impaired loans and interest recognized on impaired loans for the years ended December 31, 2012 and 2011 (dollars in thousands):
| |
|
2012 |
|
|
2011 |
|
Average of impaired loans during the period: |
|
|
|
|
|
|
Commercial and industrial |
|
$ |
14,928 |
|
|
$ |
7,622 |
|
| |
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
Residential developed |
|
|
8,162 |
|
|
|
12,509 |
|
Unsecured to residential developers |
|
|
--- |
|
|
|
559 |
|
Vacant and unimproved |
|
|
3,851 |
|
|
|
5,710 |
|
Commercial development |
|
|
216 |
|
|
|
407 |
|
Residential improved |
|
|
13,192 |
|
|
|
9,721 |
|
Commercial improved |
|
|
17,975 |
|
|
|
18,195 |
|
Manufacturing and industrial |
|
|
9,125 |
|
|
|
7,335 |
|
| |
|
|
|
|
|
|
|
|
Consumer |
|
|
15,857 |
|
|
|
12,433 |
|
| |
|
|
|
|
|
|
|
|
Interest income recognized during impairment: |
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
1,291 |
|
|
|
464 |
|
Commercial real estate |
|
|
2,736 |
|
|
|
2,039 |
|
Consumer |
|
|
538 |
|
|
|
413 |
|
| |
|
|
|
|
|
|
|
|
Cash-basis interest income recognized |
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
1,295 |
|
|
|
536 |
|
Commercial real estate |
|
|
2,740 |
|
|
|
1,997 |
|
Consumer |
|
|
550 |
|
|
|
406 |
|
|
| Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans |
The following table presents the recorded investment of loans in nonaccrual and loans past due over 90 days still on accrual by class of loans as of December 31, 2012 and 2011:
| |
|
December 31, 2012 |
|
|
December 31, 2011 |
|
| |
|
Nonaccrual |
|
|
Over 90 days
Accruing
|
|
|
Nonaccrual |
|
|
Over 90 days
Accruing
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
7,657 |
|
|
$ |
--- |
|
|
$ |
9,270 |
|
|
$ |
290 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential developed |
|
|
3,024 |
|
|
|
--- |
|
|
|
3,577 |
|
|
|
126 |
|
Unsecured to residential developers |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Vacant and unimproved |
|
|
706 |
|
|
|
--- |
|
|
|
3,715 |
|
|
|
--- |
|
Commercial development |
|
|
2 |
|
|
|
196 |
|
|
|
49 |
|
|
|
--- |
|
Residential improved |
|
|
1,159 |
|
|
|
--- |
|
|
|
5,144 |
|
|
|
286 |
|
Commercial improved |
|
|
1,521 |
|
|
|
422 |
|
|
|
2,654 |
|
|
|
1,255 |
|
Manufacturing and industrial |
|
|
225 |
|
|
|
--- |
|
|
|
134 |
|
|
|
--- |
|
| |
|
|
6,637 |
|
|
|
618 |
|
|
|
15,273 |
|
|
|
1,667 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
447 |
|
|
|
--- |
|
|
|
1,777 |
|
|
|
111 |
|
Unsecured |
|
|
19 |
|
|
|
--- |
|
|
|
22 |
|
|
|
--- |
|
Home equity |
|
|
625 |
|
|
|
--- |
|
|
|
534 |
|
|
|
--- |
|
Other secured |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
2 |
|
| |
|
|
1,091 |
|
|
|
--- |
|
|
|
2,333 |
|
|
|
113 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
15,385 |
|
|
$ |
618 |
|
|
$ |
26,876 |
|
|
$ |
2,070 |
|
|
| Aging of recorded investment in past due loans by class of loans |
The following table presents the aging of the recorded investment in past due loans as of December 31, 2012 by class of loans (dollars in thousands):
| |
|
30-90
Days
|
|
|
Greater
Than
90 Days
|
|
|
Total
Past Due
|
|
|
Loans Not
Past Due
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
395 |
|
|
$ |
219 |
|
|
$ |
614 |
|
|
$ |
264,076 |
|
|
$ |
264,690 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential developed |
|
|
--- |
|
|
|
35 |
|
|
|
35 |
|
|
|
26,055 |
|
|
|
26,090 |
|
Unsecured to residential developers |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
557 |
|
|
|
557 |
|
Vacant and unimproved |
|
|
17 |
|
|
|
652 |
|
|
|
669 |
|
|
|
55,856 |
|
|
|
56,525 |
|
Commercial development |
|
|
--- |
|
|
|
199 |
|
|
|
199 |
|
|
|
1,600 |
|
|
|
1,799 |
|
Residential improved |
|
|
520 |
|
|
|
192 |
|
|
|
712 |
|
|
|
75,101 |
|
|
|
75,813 |
|
Commercial improved |
|
|
2,502 |
|
|
|
1,436 |
|
|
|
3,938 |
|
|
|
251,800 |
|
|
|
255,738 |
|
Manufacturing and industrial |
|
|
200 |
|
|
|
25 |
|
|
|
225 |
|
|
|
81,222 |
|
|
|
81,447 |
|
| |
|
|
3,239 |
|
|
|
2,539 |
|
|
|
5,778 |
|
|
|
492,191 |
|
|
|
497,969 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
647 |
|
|
|
110 |
|
|
|
757 |
|
|
|
181,868 |
|
|
|
182,625 |
|
Unsecured |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
1,683 |
|
|
|
1,683 |
|
Home equity |
|
|
415 |
|
|
|
264 |
|
|
|
679 |
|
|
|
92,085 |
|
|
|
92,764 |
|
Other secured |
|
|
59 |
|
|
|
--- |
|
|
|
59 |
|
|
|
12,558 |
|
|
|
12,617 |
|
| |
|
|
1,121 |
|
|
|
374 |
|
|
|
1,495 |
|
|
|
288,194 |
|
|
|
289,689 |
|
Total |
|
$ |
4,755 |
|
|
$ |
3,132 |
|
|
$ |
7,887 |
|
|
$ |
1,044,461 |
|
|
$ |
1,052,348 |
|
The following table presents the aging of the recorded investment in past due loans as of December 31, 2011 by class of loans (dollars in thousands):
| |
|
30-90
Days
|
|
|
Greater Than
90 Days
|
|
|
Total
Past Due
|
|
|
Loans Not
Past Due
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
218 |
|
|
$ |
1,230 |
|
|
$ |
1,448 |
|
|
$ |
225,603 |
|
|
$ |
227,051 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential developed |
|
|
472 |
|
|
|
613 |
|
|
|
1,085 |
|
|
|
32,744 |
|
|
|
33,829 |
|
Unsecured to residential developers |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
5,937 |
|
|
|
5,937 |
|
Vacant and unimproved |
|
|
442 |
|
|
|
388 |
|
|
|
830 |
|
|
|
65,216 |
|
|
|
66,046 |
|
Commercial development |
|
|
--- |
|
|
|
49 |
|
|
|
49 |
|
|
|
4,537 |
|
|
|
4,586 |
|
Residential improved |
|
|
549 |
|
|
|
1,343 |
|
|
|
1,892 |
|
|
|
80,445 |
|
|
|
82,337 |
|
Commercial improved |
|
|
1,355 |
|
|
|
3,266 |
|
|
|
4,621 |
|
|
|
299,449 |
|
|
|
304,070 |
|
Manufacturing and industrial |
|
|
--- |
|
|
|
134 |
|
|
|
134 |
|
|
|
71,328 |
|
|
|
71,462 |
|
| |
|
|
2,818 |
|
|
|
5,793 |
|
|
|
8,611 |
|
|
|
559,656 |
|
|
|
568,267 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
313 |
|
|
|
1,517 |
|
|
|
1,830 |
|
|
|
155,061 |
|
|
|
156,891 |
|
Unsecured |
|
|
35 |
|
|
|
--- |
|
|
|
35 |
|
|
|
1,917 |
|
|
|
1,952 |
|
Home equity |
|
|
663 |
|
|
|
498 |
|
|
|
1,161 |
|
|
|
99,913 |
|
|
|
101,074 |
|
Other secured |
|
|
51 |
|
|
|
2 |
|
|
|
53 |
|
|
|
15,687 |
|
|
|
15,740 |
|
| |
|
|
1,062 |
|
|
|
2,017 |
|
|
|
3,079 |
|
|
|
272,578 |
|
|
|
275,657 |
|
Total |
|
$ |
4,098 |
|
|
$ |
9,040 |
|
|
$ |
13,138 |
|
|
$ |
1,057,837 |
|
|
$ |
1,070,975 |
|
|
| Troubled debt restructurings |
The following table presents information regarding troubled debt restructurings as of December 31, 2012 and 2011 (dollars in thousands):
| |
|
December 31, 2012 |
|
|
December 31, 2011 |
|
|
|
Number of
Loans
|
|
|
Outstanding
Recorded
Balance
|
|
|
Number of
Loans
|
|
|
Outstanding
Recorded
Balance
|
|
Commercial and industrial |
|
|
58 |
|
|
$ |
14,485 |
|
|
|
98 |
|
|
$ |
15,395 |
|
Commercial real estate |
|
|
142 |
|
|
|
49,936 |
|
|
|
120 |
|
|
|
46,414 |
|
Consumer |
|
|
86 |
|
|
|
13,634 |
|
|
|
90 |
|
|
|
15,373 |
|
| |
|
|
286 |
|
|
$ |
78,055 |
|
|
|
308 |
|
|
$ |
77,182 |
|
The following table presents information regarding troubled debt restructurings executed during the twelve months ended December 31, 2012 (dollars in thousands):
|
|
Number of Loans
|
|
|
Pre-Modification
Outstanding
Recorded Balance
|
|
|
Principal
Writedown upon
Modification
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
16 |
|
|
$ |
1,462 |
|
|
$ |
9 |
|
Commercial real estate |
|
|
52 |
|
|
|
15,413 |
|
|
|
332 |
|
Consumer |
|
|
10 |
|
|
|
1,518 |
|
|
|
261 |
|
| |
|
|
78 |
|
|
$ |
18,393 |
|
|
$ |
602 |
|
The following table presents information regarding troubled debt restructurings executed during the twelve months ended December 31, 2011 (dollars in thousands):
|
|
Number of Loans
|
|
|
Pre-Modification
Outstanding
Recorded Balance
|
|
|
Principal
Writedown upon
Modification
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
95 |
|
|
$ |
9,726 |
|
|
$ |
570 |
|
Commercial real estate |
|
|
106 |
|
|
|
44,122 |
|
|
|
961 |
|
Consumer |
|
|
16 |
|
|
|
2,509 |
|
|
|
--- |
|
| |
|
|
217 |
|
|
$ |
56,357 |
|
|
$ |
1,531 |
|
|
| Modifications and renewal during period that are not considered TDRs |
According to the accounting standards, not all loan modifications are TDRs. TDRs are modifications or renewals where the Company has granted a concession to a borrower in financial distress. The Company reviews all modifications and renewals for determination of TDR status. In some situations a borrower may be experiencing financial distress, but the Company does not provide a concession. These modifications are not considered TDRs. In other cases, the Company might provide a concession, such as a reduction in interest rate, but the borrower is not experiencing financial distress. This could be the case if the Company is matching a competitor's interest rate. These modifications would also not be considered TDRs. Finally, any renewals at existing terms for borrowers not experiencing financial distress would not be considered TDRs. The following table presents information regarding modifications and renewals executed during the twelve months ended December 31, 2012 and 2011 that are not considered TDRs (dollars in thousands):
| |
|
2012 |
|
|
2011 |
|
|
|
Number of
Loans
|
|
|
Outstanding
Recorded
Balance
|
|
|
Number of
Loans
|
|
|
Outstanding
Recorded
Balance
|
|
Commercial and industrial |
|
|
557 |
|
|
$ |
138,174 |
|
|
|
584 |
|
|
$ |
88,196 |
|
Commercial real estate |
|
|
384 |
|
|
|
141,715 |
|
|
|
436 |
|
|
|
129,002 |
|
Consumer |
|
|
79 |
|
|
|
3,126 |
|
|
|
112 |
|
|
|
4,626 |
|
|
|
|
1,020 |
|
|
$ |
283,015 |
|
|
|
1,132 |
|
|
$ |
221,824 |
|
|
| Troubled debt restructured loans that defaulted during the period |
The table below presents by class, information regarding troubled debt restructured loans which had payment defaults during the twelve months ended December 31, 2012 and 2011 (dollars in thousands). Included are loans that became delinquent more than 90 days past due or transferred to nonaccrual within 12 months of restructuring.
| |
|
2012 |
|
|
2011 |
|
|
|
Number of
Loans
|
|
|
Outstanding
Recorded
Balance
|
|
|
Number of
Loans
|
|
|
Outstanding
Recorded
Balance
|
|
Commercial and industrial |
|
|
3 |
|
|
$ |
112 |
|
|
|
5 |
|
|
$ |
871 |
|
Commercial real estate |
|
|
2 |
|
|
|
225 |
|
|
|
11 |
|
|
|
2,806 |
|
Consumer |
|
|
2 |
|
|
|
184 |
|
|
|
2 |
|
|
|
402 |
|
|
| Risk grade category of loans by class of loans |
As of December 31, 2012, the risk grade category of loans by class of loans is as follows (dollars in thousands):
| |
|
1 |
|
|
2 |
|
|
3 |
|
|
4 |
|
|
5 |
|
|
6 |
|
|
7 |
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
1,349 |
|
|
$ |
20,630 |
|
|
$ |
72,723 |
|
|
$ |
146,415 |
|
|
$ |
12,027 |
|
|
$ |
3,884 |
|
|
$ |
7,662 |
|
|
$ |
--- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential developed |
|
|
--- |
|
|
|
--- |
|
|
|
715 |
|
|
|
6,240 |
|
|
|
9,772 |
|
|
|
6,339 |
|
|
|
3,024 |
|
|
|
--- |
|
Unsecured to residential developers |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
545 |
|
|
|
12 |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Vacant and unimproved |
|
|
--- |
|
|
|
--- |
|
|
|
12,532 |
|
|
|
29,654 |
|
|
|
12,412 |
|
|
|
1,221 |
|
|
|
706 |
|
|
|
--- |
|
Commercial development |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
482 |
|
|
|
1,102 |
|
|
|
213 |
|
|
|
2 |
|
|
|
--- |
|
Residential improved |
|
|
--- |
|
|
|
115 |
|
|
|
9,973 |
|
|
|
41,578 |
|
|
|
14,471 |
|
|
|
8,517 |
|
|
|
1,159 |
|
|
|
--- |
|
Commercial improved |
|
|
--- |
|
|
|
2,009 |
|
|
|
40,253 |
|
|
|
159,353 |
|
|
|
37,449 |
|
|
|
15,153 |
|
|
|
1,521 |
|
|
|
--- |
|
Manufacturing and industrial |
|
|
--- |
|
|
|
2,087 |
|
|
|
17,795 |
|
|
|
48,061 |
|
|
|
9,592 |
|
|
|
3,687 |
|
|
|
225 |
|
|
|
--- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,349 |
|
|
$ |
24,841 |
|
|
$ |
153,991 |
|
|
$ |
432,328 |
|
|
$ |
96,837 |
|
|
$ |
39,014 |
|
|
$ |
14,299 |
|
|
$ |
--- |
|
As of December 31, 2011, the risk grade category of loans by class of loans is as follows (dollars in thousands):
| |
|
1 |
|
|
2 |
|
|
3 |
|
|
4 |
|
|
5 |
|
|
6 |
|
|
7 |
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
595 |
|
|
$ |
8,447 |
|
|
$ |
56,457 |
|
|
$ |
117,015 |
|
|
$ |
27,674 |
|
|
$ |
7,593 |
|
|
$ |
9,270 |
|
|
$ |
--- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential developed |
|
|
--- |
|
|
|
--- |
|
|
|
283 |
|
|
|
9,688 |
|
|
|
11,410 |
|
|
|
8,725 |
|
|
|
3,723 |
|
|
|
--- |
|
Unsecured to residential developers |
|
|
--- |
|
|
|
--- |
|
|
|
4,773 |
|
|
|
647 |
|
|
|
177 |
|
|
|
340 |
|
|
|
--- |
|
|
|
--- |
|
Vacant and unimproved |
|
|
--- |
|
|
|
--- |
|
|
|
14,707 |
|
|
|
24,344 |
|
|
|
21,362 |
|
|
|
1,918 |
|
|
|
3,715 |
|
|
|
--- |
|
Commercial development |
|
|
--- |
|
|
|
--- |
|
|
|
60 |
|
|
|
2,261 |
|
|
|
1,109 |
|
|
|
1,107 |
|
|
|
49 |
|
|
|
--- |
|
Residential improved |
|
|
--- |
|
|
|
121 |
|
|
|
2,650 |
|
|
|
45,813 |
|
|
|
18,642 |
|
|
|
9,968 |
|
|
|
5,143 |
|
|
|
--- |
|
Commercial improved |
|
|
--- |
|
|
|
5 |
|
|
|
62,510 |
|
|
|
173,697 |
|
|
|
43,493 |
|
|
|
21,712 |
|
|
|
2,653 |
|
|
|
--- |
|
Manufacturing and industrial |
|
|
--- |
|
|
|
2,242 |
|
|
|
12,209 |
|
|
|
38,533 |
|
|
|
11,344 |
|
|
|
7,000 |
|
|
|
134 |
|
|
|
--- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
$ |
595 |
|
|
$ |
10,815 |
|
|
$ |
153,649 |
|
|
$ |
411,998 |
|
|
$ |
135,211 |
|
|
$ |
58,363 |
|
|
$ |
24,687 |
|
|
$ |
--- |
|
|
| Commercial loans classified as substandard or worse |
Commercial loans rated a 6 or worse per the Company's internal risk rating system are considered substandard, doubtful or loss. Commercial loans classified as substandard or worse were as follows at year-end (dollars in thousands):
| |
|
2012 |
|
|
2011 |
|
|
|
|
|
|
|
|
Not classified as impaired |
|
$ |
13,015 |
|
|
$ |
29,687 |
|
Classified as impaired |
|
|
40,298 |
|
|
|
53,363 |
|
Total commercial loans classified substandard or worse |
|
$ |
53,313 |
|
|
$ |
83,050 |
|
|
| Recorded investment in consumer loans based on payment activity |
The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following tables present the recorded investment in consumer loans based on payment activity as of December 31, 2012 and 2011 (dollars in thousands):
December 31, 2012 |
|
Residential
Mortgage
|
|
|
Consumer
Unsecured
|
|
|
Home
Equity
|
|
|
Consumer
Other
|
|
Performing |
|
$ |
182,515 |
|
|
$ |
1,683 |
|
|
$ |
92,500 |
|
|
$ |
12,617 |
|
Nonperforming |
|
|
110 |
|
|
|
--- |
|
|
|
264 |
|
|
|
--- |
|
Total |
|
$ |
182,625 |
|
|
$ |
1,683 |
|
|
$ |
92,764 |
|
|
$ |
12,617 |
|
December 31, 2011 |
|
Residential
Mortgage
|
|
|
Consumer
Unsecured
|
|
|
Home
Equity
|
|
|
Consumer
Other
|
|
Performing |
|
$ |
155,374 |
|
|
$ |
1,952 |
|
|
$ |
100,576 |
|
|
$ |
15,738 |
|
Nonperforming |
|
|
1,517 |
|
|
|
--- |
|
|
|
498 |
|
|
|
2 |
|
Total |
|
$ |
156,891 |
|
|
$ |
1,952 |
|
|
$ |
101,074 |
|
|
$ |
15,740 |
|
|