Quarterly report pursuant to Section 13 or 15(d)

LOANS (Tables)

v2.4.0.6
LOANS (Tables)
 6 Months Ended
Jun. 30, 2012
LOANS [Abstract]  
Portfolio loans
Portfolio loans were as follows (dollars in thousands):

 
 
June 30,
2012
 
 
December 31,
2011
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
221,628
 
 
$
227,051
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 
 
 
 
 
 
Residential developed
 
 
28,464
 
 
 
33,829
 
Unsecured to residential developers
 
 
589
 
 
 
5,937
 
Vacant and unimproved
 
 
60,115
 
 
 
66,046
 
Commercial development
 
 
4,772
 
 
 
4,586
 
Residential improved
 
 
79,169
 
 
 
82,337
 
Commercial improved
 
 
283,293
 
 
 
304,070
 
Manufacturing and industrial
 
 
75,531
 
 
 
71,462
 
Total commercial real estate
 
 
531,933
 
 
 
568,267
 
 
 
 
 
 
 
 
 
Consumer
 
 
 
 
 
 
 
Residential mortgage
 
 
170,983
 
 
 
156,891
 
Unsecured
 
 
1,776
 
 
 
1,952
 
Home equity
 
 
96,535
 
 
 
101,074
 
Other secured
 
 
14,110
 
 
 
15,740
 
Total consumer
 
 
283,404
 
 
 
275,657
 
 
 
 
 
 
 
 
 
Total loans
 
 
1,036,965
 
 
 
1,070,975
 
Allowance for loan losses
 
 
(27,180
)
 
 
(31,641
)
 
 
 
 
 
 
 
 
 
 
$
1,009,785
 
 
$
1,039,334
 
 
Activity in allowance for loan losses by portfolio segment
Activity in the allowance for loan losses by portfolio segment was as follows (dollars in thousands):
 
Three months ended June 30, 2012:
 
Commercial and
Industrial
 
 
Commercial
Real Estate
 
 
Consumer
 
 
Unallocated
 
 
Total
 
Beginning balance
 
$
7,507
 
 
$
17,565
 
 
$
4,366
 
 
$
13
 
 
$
29,451
 
Charge-offs
 
 
(21
)
 
 
(799
)
 
 
(79
)
 
 
---
 
 
 
(899
)
Recoveries
 
 
110
 
 
 
201
 
 
 
67
 
 
 
---
 
 
 
378
 
Provision for loan losses
 
 
(958
)
 
 
(1,728
)
 
 
900
 
 
36
 
 
(1,750
)
Ending balance
 
$
6,638
 
 
$
15,239
 
 
$
5,254
 
 
$
49
 
 
$
27,180
 

Three months ended June 30, 2011:
 
Commercial and
Industrial
 
 
Commercial
Real Estate
 
 
Consumer
 
 
Unallocated
 
 
Total
 
Beginning balance
 
$
7,191
 
 
$
30,707
 
 
$
4,423
 
 
$
22
 
 
$
42,343
 
Charge-offs
 
 
(783
)
 
 
(3,129
)
 
 
(518
)
 
 
---
 
 
 
(4,430
)
Recoveries
 
 
1,083
 
 
 
387
 
 
 
94
 
 
 
---
 
 
 
1,564
 
Provision for loan losses
 
 
(2,000
)
 
 
(1,150
)
 
 
1,116
 
 
 
34
 
 
(2,000
)
Ending balance
 
$
5,491
 
 
$
26,815
 
 
$
5,115
 
 
$
56
 
 
$
37,477
 
 
Six months ended June 30, 2012:
 
Commercial and
Industrial
 
 
Commercial
Real Estate
 
 
Consumer
 
 
Unallocated
 
 
Total
 
Beginning balance
 
$
6,313
 
 
$
20,475
 
 
$
4,821
 
 
$
32
 
 
$
31,641
 
Charge-offs
 
 
(989
)
 
 
(2,506
)
 
 
(901
)
 
 
---
 
 
 
(4,396
)
Recoveries
 
 
280
 
 
 
4,885
 
 
 
120
 
 
 
---
 
 
 
5,285
 
Provision for loan losses
 
 
1,034
 
 
 
(7,615
)
 
 
1,214
 
 
17
 
 
(5,350
)
Ending balance
 
$
6,638
 
 
$
15,239
 
 
$
5,254
 
 
$
49
 
 
$
27,180
 
 
Six months ended June 30, 2011:
 
Commercial and
Industrial
 
 
Commercial
Real Estate
 
 
Consumer
 
 
Unallocated
 
 
Total
 
Beginning balance
 
$
7,012
 
 
$
34,973
 
 
$
5,415
 
 
$
26
 
 
$
47,426
 
Charge-offs
 
 
(1,587
)
 
 
(5,526
)
 
 
(1,449
)
 
 
---
 
 
 
(8,562
)
Recoveries
 
 
1,277
 
 
 
637
 
 
 
149
 
 
 
---
 
 
 
2,063
 
Provision for loan losses
 
 
(1,211
)
 
 
(3,269
)
 
 
1,000
 
 
 
30
 
 
(3,450
)
Ending balance
 
$
5,491
 
 
$
26,815
 
 
$
5,115
 
 
$
56
 
 
$
37,477
 

Allowance for loan losses and recorded investment in loans by portfolio segment based on impairment method
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method (dollars in thousands):
 
June 30, 2012:
 
 
Commercial and
Industrial
 
 
Commercial
Real Estate
 
 
Consumer
 
 
Unallocated
 
 
Total
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending allowance attributable to loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually reviewed for impairment
 
$
4,230
 
 
$
3,717
 
 
$
2,520
 
 
$
---
 
 
$
10,467
 
Collectively evaluated for impairment
 
 
2,408
 
 
 
11,522
 
 
 
2,734
 
 
 
49
 
 
 
16,713
 
Total ending allowance balance
 
$
6,638
 
 
$
15,239
 
 
$
5,254
 
 
$
49
 
 
$
27,180
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually reviewed for impairment
 
$
12,829
 
 
$
51,901
 
 
$
16,199
 
 
$
---
 
 
$
80,929
 
Collectively evaluated for impairment
 
 
208,799
 
 
 
480,032
 
 
 
267,205
 
 
 
---
 
 
 
956,036
 
Total ending loans balance
 
$
221,628
 
 
$
531,933
 
 
$
283,404
 
 
$
---
 
 
$
1,036,965
 

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 June 30, 2012 (dollars in thousands):
 
 
 
Unpaid
Principal
Balance
 
 
Recorded
Investment
 
 
Allowance
Allocated
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
4,819
 
 
$
2,446
 
 
$
---
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 
 
 
 
 
 
 
 
 
Residential developed
 
 
6,481
 
 
5,584
 
 
 
---
 
Unsecured to residential developers
 
 
---
 
 
---
 
 
 
---
 
Vacant and unimproved
 
 
2,115
 
 
1,418
 
 
 
---
 
Commercial development
 
 
217
 
 
217
 
 
 
---
 
Residential improved
 
 
5,056
 
 
4,190
 
 
 
---
 
Commercial improved
 
 
7,671
 
 
6,576
 
 
 
---
 
Manufacturing and industrial
 
 
4,496
 
 
4,496
 
 
 
---
 
 
 
 
26,036
 
 
22,481
 
 
 
---
 
Consumer:
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
 
---
 
 
 
---
 
 
 
---
 
Unsecured
 
 
---
 
 
 
---
 
 
 
---
 
Home equity
 
 
200
 
 
 
200
 
 
 
---
 
Other secured
 
 
---
 
 
 
---
 
 
 
---
 
 
 
 
200
 
 
 
200
 
 
 
---
 
 
 
$
31,055
 
 
$
25,127
 
 
$
---
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
10,383
 
 
$
10,383
 
 
$
4,230
 
Commercial real estate:
 
 
 
 
 
 
 
 
 
Residential developed
 
 
2,648
 
 
 
2,648
 
 
 
1,200
 
Unsecured to residential developers
 
 
---
 
 
 
---
 
 
 
---
 
Vacant and unimproved
 
 
2,995
 
 
 
2,995
 
 
 
651
 
Commercial development
 
 
---
 
 
 
---
 
 
 
---
 
Residential improved
 
 
9,062
 
 
 
9,062
 
 
 
789
 
Commercial improved
 
 
9,900
 
 
 
9,900
 
 
 
904
 
Manufacturing and industrial
 
 
4,815
 
 
 
4,815
 
 
 
173
 
 
 
 
29,420
 
 
 
29,420
 
 
 
3,717
 
Consumer:
 
 
 
 
 
 
 
 
 
Residential mortgage
 
 
15,213
 
 
 
15,213
 
 
 
2,469
 
Unsecured
 
 
---
 
 
 
---
 
 
 
---
 
Home equity
 
 
786
 
 
 
786
 
 
 
51
 
Other secured
 
 
---
 
 
 
---
 
 
 
---
 
 
 
 
15,999
 
 
 
15,999
 
 
 
2,520
 
 
 
$
55,802
 
 
$
55,802
 
 
$
10,467
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
86,857
 
 
$
80,929
 
 
$
10,467
 
 
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 impaired loans
The following table presents information regarding average balances of impaired loans and interest recognized on impaired loans for the three and six month periods ended June 30, 2012 and 2011 (dollars in thousands):
 
 
Three Months
 Ended
June 30,
2012
 
 
Three Months
Ended
June 30,
2011
 
 
Six Months
Ended
June 30,
2012
 
 
Six Months
Ended
June 30,
2011
 
Average of impaired loans during the period:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
14,788
 
 
$
6,608
 
 
$
16,874
 
 
$
5,532
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential developed
 
 
8,351
 
 
 
12,111
 
 
 
8,445
 
 
 
14,414
 
Unsecured to residential developers
 
 
---
 
 
 
795
 
 
 
---
 
 
 
864
 
Vacant and unimproved
 
 
3,862
 
 
 
6,197
 
 
 
3,672
 
 
 
5,483
 
Commercial development
 
 
217
 
 
 
223
 
 
 
218
 
 
 
567
 
Residential improved
 
 
13,440
 
 
 
9,741
 
 
 
13,993
 
 
 
9,144
 
Commercial improved
 
 
17,280
 
 
 
17,823
 
 
 
16,690
 
 
 
20,158
 
Manufacturing and industrial
 
 
9,299
 
 
 
6,632
 
 
 
9,384
 
 
 
7,613
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer
 
 
16,136
 
 
 
12,381
 
 
 
16,030
 
 
 
12,594
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income recognized during impairment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
465
 
 
 
79
 
 
 
827
 
 
 
65
 
Commercial real estate
 
 
626
 
 
 
446
 
 
 
1,211
 
 
 
969
 
Consumer
 
 
144
 
 
 
97
 
 
 
278
 
 
 
207
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash-basis interest income recognized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
487
 
 
 
70
 
 
 
815
 
 
 
122
 
Commercial real estate
 
 
627
 
 
 
398
 
 
 
1,215
 
 
 
907
 
Consumer
 
 
139
 
 
 
102
 
 
 
276
 
 
 
213
 
 
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 in nonaccrual and loans past due over 90 days still on accrual by class of loans as of June 30, 2012:
 
 
 
 
Nonaccrual
 
 
Over 90
days
Accruing
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
6,146
 
 
$
27
 
Commercial real estate:
 
 
 
 
 
 
Residential developed
 
 
5,461
 
 
 
---
 
Unsecured to residential developers
 
 
---
 
 
 
---
 
Vacant and unimproved
 
 
118
 
 
 
---
 
Commercial development
 
 
422
 
 
 
---
 
Residential improved
 
 
2,149
 
 
 
---
 
Commercial improved
 
 
2,710
 
 
 
---
 
Manufacturing and industrial
 
 
257
 
 
 
---
 
 
 
 
11,117
 
 
 
---
 
Consumer:
 
 
 
 
 
 
Residential mortgage
 
 
978
 
 
 
---
 
Unsecured
 
 
21
 
 
 
---
 
Home equity
 
 
590
 
 
 
---
 
Other secured
 
 
---
 
 
 
---
 
 
 
 
1,589
 
 
 
---
 
 
 
 
 
 
 
 
Total
 
$
18,852
 
 
$
27
 
 
The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of December 31, 2011:
 
 
 
 
Nonaccrual
 
 
Over 90
days
Accruing
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
9,270
 
 
$
290
 
Commercial real estate:
 
 
 
 
 
 
Residential developed
 
 
3,577
 
 
 
126
 
Unsecured to residential developers
 
 
---
 
 
 
---
 
Vacant and unimproved
 
 
3,715
 
 
 
---
 
Commercial development
 
 
49
 
 
 
---
 
Residential improved
 
 
5,144
 
 
 
286
 
Commercial improved
 
 
2,654
 
 
 
1,255
 
Manufacturing and industrial
 
 
134
 
 
 
---
 
 
 
 
15,273
 
 
 
1,667
 
Consumer:
 
 
 
 
 
 
Residential mortgage
 
 
1,777
 
 
 
111
 
Unsecured
 
 
22
 
 
 
---
 
Home equity
 
 
534
 
 
 
---
 
Other secured
 
 
---
 
 
 
2
 
 
 
 
2,333
 
 
 
113
 
 
 
 
 
 
 
 
Total
 
$
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 June 30, 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
 
$
45
 
 
$
150
 
 
$
195
 
 
$
221,433
 
 
$
221,628
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential developed
 
 
312
 
 
 
37
 
 
 
349
 
 
 
28,115
 
 
 
28,464
 
Unsecured to residential developers
 
 
---
 
 
 
---
 
 
 
---
 
 
 
589
 
 
 
589
 
Vacant and unimproved
 
 
963
 
 
 
50
 
 
 
1,013
 
 
 
59,102
 
 
 
60,115
 
Commercial development
 
 
---
 
 
 
422
 
 
 
422
 
 
 
4,350
 
 
 
4,772
 
Residential improved
 
 
1,188
 
 
 
592
 
 
 
1,780
 
 
 
77,389
 
 
 
79,169
 
Commercial improved
 
 
269
 
 
 
1,159
 
 
 
1,428
 
 
 
281,865
 
 
 
283,293
 
Manufacturing and industrial
 
 
---
 
 
 
32
 
 
 
32
 
 
 
75,499
 
 
 
75,531
 
 
 
 
2,732
 
 
 
2,292
 
 
 
5,024
 
 
 
526,909
 
 
 
531,933
 
Consumer:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
 
74
 
 
 
686
 
 
 
760
 
 
 
170,223
 
 
 
170,983
 
Unsecured
 
 
---
 
 
 
---
 
 
 
---
 
 
 
1,776
 
 
 
1,776
 
Home equity
 
 
330
 
 
 
555
 
 
 
885
 
 
 
95,650
 
 
 
96,535
 
Other secured
 
 
---
 
 
 
---
 
 
 
---
 
 
 
14,110
 
 
 
14,110
 
 
 
 
404
 
 
 
1,241
 
 
 
1,645
 
 
 
281,759
 
 
 
283,404
 
Total
 
$
3,181
 
 
$
3,683
 
 
$
6,864
 
 
$
1,030,101
 
 
$
1,036,965
 
 
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 June 30, 2012 and December 31, 2011 (dollars in thousands):
 
 
 
June 30, 2012
 
 
December 31, 2011
 
 
 
Number of Loans
 
 
Outstanding Recorded Balance
 
 
Number of Loans
 
 
Outstanding Recorded Balance
 
Commercial and industrial
 
 
114
 
 
$
12,463
 
 
 
98
 
 
$
15,395
 
Commercial real estate
 
 
141
 
 
 
45,970
 
 
 
120
 
 
 
46,414
 
Consumer
 
 
97
 
 
 
15,935
 
 
 
90
 
 
 
15,373
 
 
 
 
352
 
 
$
74,368
 
 
 
308
 
 
$
77,182
 

The following table presents information regarding troubled debt restructurings executed during the three month periods ended June 30, 2012 and 2011 (dollars in thousands):

 
 
Three Months Ended
June 30, 2012
 
 
Three Months Ended
June 30, 2011
 
 
 
Number of Loans
 
 
Outstanding Recorded Balance
 
 
Principal Writedown upon Modification
 
 
Number of Loans
 
 
Outstanding Recorded Balance
 
 
Principal Writedown upon Modification
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
3
 
 
$
93
 
 
$
9
 
 
14
 
 
$
1,193
$
---
 
Commercial real estate
 
 
9
 
 
1,301
 
 
 
---
 
 
17
 
 
5,384
30
 
Consumer
 
 
2
 
 
 
275
 
 
 
---
 
 
5
 
 
759
---
 
14
$
1,669
$
9
36
$
7,336
$
30

The following table presents information regarding troubled debt restructurings executed during the six month periods ended June 30, 2012 and 2011 (dollars in thousands):

 
 
Six Months Ended
June 30, 2012
 
 
Six Months Ended
June 30, 2011
 
 
 
Number of Loans
 
 
Outstanding Recorded Balance
 
 
Principal Writedown upon Modification
 
 
Number of Loans
 
 
Outstanding Recorded Balance
 
 
Principal Writedown upon Modification
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
13
 
 
$
1,335
 
 
$
9
 
 
62
 
 
$
2,615
$
---
 
Commercial real estate
 
 
39
 
 
7,698
 
 
 
86
 
 
48
 
 
14,954
553
 
Consumer
 
 
9
 
 
 
1,462
 
 
 
260
 
 
11
 
1,670
---
 
61
$
10,495
$
355
121
$
19,239
$
553

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 three month periods ended June 30, 2012 and 2011 that are not considered TDRs (dollars in thousands):

  
Three Months Ended
June 30, 2012
 
Three Months Ended
June 30, 2011
 
 
 
Number of Loans
 
Outstanding Recorded Balance
 
Number of Loans
Outstanding Recorded Balance
 
 
 
 
 
 
 
 
Commercial and industrial
156
 
$
27,628
 
195
$
27,551
 
Commercial real estate
85
 
 
28,906
 
110
37,128
 
Consumer
22
 
 
815
 
25
681
 
263
$
57,349
330
$
65,360
 
The following table presents information regarding modifications and renewals executed during the six month periods ended June 30, 2012 and 2011 that are not considered TDRs (dollars in thousands):

  
Six Months Ended
June 30, 2012
 
Six Months Ended
June 30, 2011
 
 
 
Number of Loans
 
Outstanding Recorded Balance
 
Number of Loans
Outstanding Recorded Balance
 
 
 
 
 
 
 
 
Commercial and industrial
250
 
$
60,918
 
305
$
57,661
 
Commercial real estate
164
 
 
65,706
 
227
80,091
 
Consumer
46
 
 
1,687
 
31
914
 
460
$
128,311
563
$
138,666

Loans that became delinquent more than 90 days past due or transferred to nonaccrual within 12 months of restructuring
The table below presents by class, information regarding troubled debt restructured loans which had payment defaults during the three month periods ended June 30, 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.

  
 
Three Months Ended
June 30, 2012
 
 
Three Months Ended
June 30, 2011
 
 
 
 
Number of Loans
 
 
Outstanding Recorded Balance
 
 
Number of Loans
Outstanding Recorded Balance
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
1
 
 
$
20
 
 
1
$
66
 
Commercial real estate
 
---
 
 
 
---
 
 
3
319
 
Consumer
 
---
 
 
 
---
 
 
---
---
 

The table below presents by class, information regarding troubled debt restructured loans which had payment defaults during the six month periods ended June 30, 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.

  
 
Six Months Ended
June 30, 2012
 
 
Six Months Ended
June 30, 2011
 
 
 
 
Number of Loans
 
 
Outstanding Recorded Balance
 
 
Number of Loans
Outstanding Recorded Balance
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
3
 
 
$
112
 
 
4
$
830
 
Commercial real estate
 
1
 
 
 
76
 
 
4
546
 
Consumer
 
1
 
 
 
70
 
 
2
402
 
 
Risk grade category of commercial loans by class of loans
As of June 30, 2012, the risk grade category of commercial loans by class of loans was as follows (dollars in thousands):
 
 
 
1
 
 
2
 
 
3
 
 
4
 
 
5
 
 
6
 
 
7
 
 
8
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
1,275
 
 
$
11,275
 
 
$
68,452
 
 
$
115,912
 
 
$
14,159
 
 
$
4,384
 
 
$
6,171
 
 
$
---
 
Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential developed
 
 
---
 
 
 
---
 
 
 
763
 
 
 
7,381
 
 
 
8,995
 
 
 
5,864
 
 
 
5,461
 
 
 
---
 
Unsecured to residential developers
 
 
---
 
 
 
---
 
 
 
---
 
 
 
556
 
 
 
33
 
 
 
---
 
 
 
---
 
 
 
---
 
Vacant and unimproved
 
 
---
 
 
 
---
 
 
 
14,608
 
 
 
24,981
 
 
 
17,349
 
 
 
3,059
 
 
 
118
 
 
 
---
 
Commercial development
 
 
---
 
 
 
---
 
 
 
---
 
 
 
2,420
 
 
 
1,104
 
 
 
826
 
 
 
422
 
 
 
---
 
Residential improved
 
 
---
 
 
 
119
 
 
 
8,704
 
 
 
42,294
 
 
 
15,331
 
 
 
10,572
 
 
 
2,149
 
 
 
---
 
Commercial improved
 
 
---
 
 
 
3,840
 
 
 
62,384
 
 
 
152,830
 
 
 
47,530
 
 
 
13,999
 
 
 
2,710
 
 
 
---
 
Manufacturing and industrial
 
 
---
 
 
 
2,101
 
 
 
17,096
 
 
 
35,816
 
 
 
11,450
 
 
 
8,811
 
 
 
257
 
 
 
---
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
1,275
 
 
$
17,335
 
 
$
172,007
 
 
$
382,190
 
 
$
115,951
 
 
$
47,515
 
 
$
17,288
 
 
$
---
 
 
As of December 31, 2011, the risk grade category of commercial loans by class of loans was 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 period-end (dollars in thousands):
 
 
 
June 30,
 2012
 
 
December 31, 2011
 
 
 
 
 
 
 
 
Not classified as impaired
 
$
20,516
 
 
$
29,687
 
Classified as impaired
 
 
44,287
 
 
 
53,363
 
 
 
 
 
 
 
 
Total commercial loans classified substandard or worse
 
$
64,803
 
 
$
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 table presents the recorded investment in consumer loans based on payment activity (dollars in thousands):
 
June 30, 2012
 
Residential
Mortgage
 
 
Consumer
Unsecured
 
 
Home
Equity
 
 
Consumer
Other
 
Performing
 
$
170,297
 
 
$
1,776
 
 
$
95,980
 
 
$
14,110
 
Nonperforming
 
 
686
 
 
 
---
 
 
 
555
 
 
 
---
 
Total
 
$
170,983
 
 
$
1,776
 
 
$
96,535
 
 
$
14,110
 
 
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