Quarterly report pursuant to Section 13 or 15(d)

LOANS (Tables)

v2.4.0.6
LOANS (Tables)
 9 Months Ended
Sep. 30, 2012
LOANS [Abstract]  
Portfolio loans
Portfolio loans were as follows (dollars in thousands):
 
September 30,
2012
December 31,
2011
 
 
Commercial and industrial
$
218,839
$
227,051
Commercial real estate:
Residential developed
29,004
33,829
Unsecured to residential developers
680
5,937
Vacant and unimproved
56,901
66,046
Commercial development
5,372
4,586
Residential improved
77,112
82,337
Commercial improved
264,041
304,070
Manufacturing and industrial
82,317
71,462
Total commercial real estate
515,427
568,267
Consumer
Residential mortgage
176,642
156,891
Unsecured
1,727
1,952
Home equity
93,407
101,074
Other secured
13,143
15,740
Total consumer
284,919
275,657
Total loans
1,019,185
1,070,975
Allowance for loan losses
(26,271
)
(31,641
)
$
992,914
$
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 September 30, 2012:
 
Commercial and
Industrial
 
 
Commercial
Real Estate
 
 
Consumer
 
 
Unallocated
 
 
Total
 
Beginning balance
 
$
6,638
 
 
$
15,239
 
 
$
5,254
 
 
$
49
 
 
$
27,180
 
Charge-offs
 
 
(239
)
 
 
(173
)
 
 
(203
)
 
 
---
 
 
 
(615
)
Recoveries
 
 
110
 
 
 
777
 
 
 
69
 
 
 
---
 
 
 
956
 
Provision for loan losses
 
 
(575
)
 
 
(552
)
 
 
(131
)
 
 
8
 
 
(1,250
)
Ending balance
 
$
5,934
 
 
$
15,291
 
 
$
4,989
 
 
$
57
 
 
$
26,271
 

Three months ended September 30, 2011:
 
Commercial and
Industrial
 
 
Commercial
Real Estate
 
 
Consumer
 
 
Unallocated
 
 
Total
 
Beginning balance
 
$
5,491
 
 
$
26,815
 
 
$
5,115
 
 
$
56
 
 
$
37,477
 
Charge-offs
 
 
(997
)
 
 
(2,190
)
 
 
(506
)
 
 
---
 
 
 
(3,693
)
Recoveries
 
 
87
 
 
 
2,113
 
 
 
108
 
 
 
---
 
 
 
2,308
 
Provision for loan losses
 
 
463
 
 
 
(980
)
 
 
(708
)
 
 
(25
)
 
 
(1,250
)
Ending balance
 
$
5,044
 
 
$
25,758
 
 
$
4,009
 
 
$
31
 
 
$
34,842
 


Nine months ended September 30, 2012:
 
Commercial and
Industrial
 
 
Commercial
Real Estate
 
 
Consumer
 
 
Unallocated
 
 
Total
 
Beginning balance
 
$
6,313
 
 
$
20,475
 
 
$
4,821
 
 
$
32
 
 
$
31,641
 
Charge-offs
 
 
(1,228
)
 
 
(2,679
)
 
 
(1,104
)
 
 
---
 
 
 
(5,011
)
Recoveries
 
 
390
 
 
 
5,662
 
 
 
189
 
 
 
---
 
 
 
6,241
 
Provision for loan losses
 
 
459
 
 
 
(8,167
)
 
 
1,083
 
 
25
 
 
(6,600
)
Ending balance
 
$
5,934
 
 
$
15,291
 
 
$
4,989
 
 
$
57
 
 
$
26,271
 

 
Nine months ended September 30, 2011:
 
Commercial and
Industrial
 
 
Commercial
Real Estate
 
 
Consumer
 
 
Unallocated
 
 
Total
 
Beginning balance
 
$
7,012
 
 
$
34,973
 
 
$
5,415
 
 
$
26
 
 
$
47,426
 
Charge-offs
 
 
(2,583
)
 
 
(7,716
)
 
 
(1,956
)
 
 
---
 
 
 
(12,255
)
Recoveries
 
 
1,364
 
 
 
2,750
 
 
 
257
 
 
 
---
 
 
 
4,371
 
Provision for loan losses
 
 
(749
)
 
 
(4,249
)
 
 
293
 
 
 
5
 
 
(4,700
)
Ending balance
 
$
5,044
 
 
$
25,758
 
 
$
4,009
 
 
$
31
 
 
$
34,842
 

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):
 
September 30, 2012:
 
Commercial and
Industrial
 
 
Commercial
Real Estate
 
 
Consumer
 
 
Unallocated
 
 
Total
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending allowance attributable to loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually reviewed for impairment
 
$
3,119
 
 
$
3,239
 
 
$
2,492
 
 
$
---
 
 
$
8,850
 
Collectively evaluated for impairment
 
 
2,815
 
 
 
12,052
 
 
 
2,497
 
 
 
57
 
 
 
17,421
 
Total ending allowance balance
 
$
5,934
 
 
$
15,291
 
 
$
4,989
 
 
$
57
 
 
$
26,271
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually reviewed for impairment
 
$
12,421
 
 
$
52,306
 
 
$
15,916
 
 
$
---
 
 
$
80,643
 
Collectively evaluated for impairment
 
 
206,418
 
 
 
463,121
 
 
 
269,003
 
 
 
---
 
 
 
938,542
 
Total ending loans balance
 
$
218,839
 
 
$
515,427
 
 
$
284,919
 
 
$
---
 
 
$
1,019,185
 

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 September 30, 2012 (dollars in thousands):
 
 
Unpaid
Principal
Balance
 
 
Recorded
Investment
 
 
Allowance
Allocated
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
2,415
 
 
$
2,123
 
 
$
---
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 
 
 
 
 
 
 
 
 
Residential developed
 
 
6,058
 
 
5,161
 
 
 
---
 
Unsecured to residential developers
 
 
---
 
 
---
 
 
 
---
 
Vacant and unimproved
 
 
1,362
 
 
1,321
 
 
 
---
 
Commercial development
 
 
215
 
 
215
 
 
 
---
 
Residential improved
 
 
3,982
 
 
3,195
 
 
 
---
 
Commercial improved
 
 
7,308
 
 
6,213
 
 
 
---
 
Manufacturing and industrial
 
 
4,774
 
 
4,774
 
 
 
---
 
 
 
23,699
 
 
20,879
 
 
 
---
 
Consumer:
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
 
---
 
 
 
---
 
 
 
---
 
Unsecured
 
 
---
 
 
 
---
 
 
 
---
 
Home equity
 
 
200
 
 
 
200
 
 
 
---
 
Other secured
 
 
---
 
 
 
---
 
 
 
---
 
 
 
200
 
 
 
200
 
 
 
---
 
 
$
26,314
 
 
$
23,202
 
 
$
---
 
 
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
10,298
 
 
$
10,298
 
 
$
3,119
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 
 
 
 
 
 
 
 
Residential developed
 
 
2,698
 
 
 
2,698
 
 
 
1,416
 
Unsecured to residential developers
 
 
---
 
 
 
---
 
 
 
---
 
Vacant and unimproved
 
 
2,613
 
 
 
2,613
 
 
 
239
 
Commercial development
 
 
---
 
 
 
---
 
 
 
---
 
Residential improved
 
 
8,983
 
 
 
8,983
 
 
 
760
 
Commercial improved
 
 
12,359
 
 
 
12,359
 
 
 
682
 
Manufacturing and industrial
 
 
4,774
 
 
 
4,774
 
 
 
142
 
 
 
31,427
 
 
 
31,427
 
 
 
3,239
 
Consumer:
 
 
 
 
 
 
 
 
 
Residential mortgage
 
 
14,905
 
 
 
14,905
 
 
 
2,439
 
Unsecured
 
 
---
 
 
 
---
 
 
 
---
 
Home equity
 
 
811
 
 
 
811
 
 
 
53
 
Other secured
 
 
---
 
 
 
---
 
 
 
---
 
 
 
15,716
 
 
 
15,716
 
 
 
2,492
 
 
$
57,441
 
 
$
57,441
 
 
$
8,850
 
 
 
 
 
 
 
 
 
 
Total
 
$
83,755
 
 
$
80,643
 
 
$
8,850
 
 
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 nine month periods ended September 30, 2012 and 2011 (dollars in thousands):
 
 
Three Months
 Ended
September 30,
2012
 
 
Three Months
Ended
September 30,
2011
 
 
Nine Months
Ended
September 30,
2012
 
 
Nine Months
Ended
September 30,
2011
 
Average of impaired loans during the period:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
12,415
 
 
$
5,920
 
 
$
15,388
 
 
$
5,661
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential developed
 
 
7,989
 
 
 
10,917
 
 
 
8,293
 
 
 
13,443
 
Unsecured to residential developers
 
 
---
 
 
 
406
 
 
 
---
 
 
 
727
 
Vacant and unimproved
 
 
4,219
 
 
 
5,705
 
 
 
3,854
 
 
 
5,700
 
Commercial development
 
 
215
 
 
 
223
 
 
 
217
 
 
 
463
 
Residential improved
 
 
12,707
 
 
 
9,741
 
 
 
13,564
 
 
 
9,576
 
Commercial improved
 
 
17,766
 
 
 
17,008
 
 
 
17,049
 
 
 
19,679
 
Manufacturing and industrial
 
 
9,104
 
 
 
6,767
 
 
 
9,291
 
 
 
7,464
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer
 
 
15,992
 
 
 
12,119
 
 
 
16,018
 
 
 
12,452
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income recognized during impairment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
263
 
 
 
91
 
 
 
1,090
 
 
 
157
 
Commercial real estate
 
 
637
 
 
 
536
 
 
 
1,848
 
 
 
1,505
 
Consumer
 
 
141
 
 
 
101
 
 
 
419
 
 
 
308
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash-basis interest income recognized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
250
 
 
 
97
 
 
 
1,065
 
 
 
220
 
Commercial real estate
 
 
637
 
 
 
560
 
 
 
1,852
 
 
 
1,467
 
Consumer
 
 
141
 
 
 
103
 
 
 
417
 
 
 
315
 
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 September 30, 2012:
 
 
Nonaccrual
 
 
Over 90
days
Accruing
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
6,606
 
 
$
600
 
 
Commercial real estate:
 
 
 
 
 
 
Residential developed
 
 
5,046
 
 
 
---
 
Unsecured to residential developers
 
 
---
 
 
 
---
 
Vacant and unimproved
 
 
893
 
 
 
---
 
Commercial development
 
 
---
 
 
 
---
 
Residential improved
 
 
1,373
 
 
 
36
 
Commercial improved
 
 
1,533
 
 
 
133
 
Manufacturing and industrial
 
 
32
 
 
 
---
 
 
 
 
8,877
 
 
 
169
 
Consumer:
 
 
 
 
 
 
Residential mortgage
 
 
771
 
 
 
---
 
Unsecured
 
 
19
 
 
 
---
 
Home equity
 
 
294
 
 
 
26
 
Other secured
 
 
---
 
 
 
---
 
 
 
 
1,084
 
 
 
26
 
Total
 
$
16,567
 
 
$
795
 
 
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 September 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
 
$
315
 
 
$
678
 
 
$
993
 
 
$
217,846
 
 
$
218,839
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential developed
 
 
79
 
 
 
35
 
 
 
114
 
 
 
28,890
 
 
 
29,004
 
Unsecured to residential developers
 
 
---
 
 
 
---
 
 
 
---
 
 
 
680
 
 
 
680
 
Vacant and unimproved
 
 
382
 
 
 
832
 
 
 
1,214
 
 
 
55,687
 
 
 
56,901
 
Commercial development
 
 
---
 
 
 
---
 
 
 
---
 
 
 
5,372
 
 
 
5,372
 
Residential improved
 
 
370
 
 
 
382
 
 
 
752
 
 
 
76,360
 
 
 
77,112
 
Commercial improved
 
 
316
 
 
 
1,149
 
 
 
1,465
 
 
 
262,576
 
 
 
264,041
 
Manufacturing and industrial
 
 
---
 
 
 
32
 
 
 
32
 
 
 
82,285
 
 
 
82,317
 
 
 
1,147
 
 
 
2,430
 
 
 
3,577
 
 
 
511,850
 
 
 
515,427
 
Consumer:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
 
130
 
 
 
230
 
 
 
360
 
 
 
176,282
 
 
 
176,642
 
Unsecured
 
 
10
 
 
 
---
 
 
 
10
 
 
 
1,717
 
 
 
1,727
 
Home equity
 
 
436
 
 
 
286
 
 
 
722
 
 
 
92,685
 
 
 
93,407
 
Other secured
 
 
51
 
 
 
---
 
 
 
51
 
 
 
13,092
 
 
 
13,143
 
 
 
627
 
 
 
516
 
 
 
1,143
 
 
 
283,776
 
 
 
284,919
 
Total
 
$
2,089
 
 
$
3,624
 
 
$
5,713
 
 
$
1,013,472
 
 
$
1,019,185
 
 
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 September 30, 2012 and December 31, 2011 (dollars in thousands):
 
 
September 30, 2012
 
 
December 31, 2011
 
 
Number of Loans
 
 
Outstanding Recorded Balance
 
 
Number of Loans
 
 
Outstanding Recorded Balance
 
Commercial and industrial
 
 
55
 
 
$
12,630
 
 
 
98
 
 
$
15,395
 
Commercial real estate
 
 
139
 
 
 
47,147
 
 
 
120
 
 
 
46,414
 
Consumer
 
 
97
 
 
 
15,414
 
 
 
90
 
 
 
15,373
 
 
 
291
 
 
$
75,191
 
 
 
308
 
 
$
77,182
 
 
The following table presents information regarding TDRs executed during the three month periods ended September 30, 2012 and 2011 (dollars in thousands):
 
Three Months Ended
September 30, 2012
 
 
Three Months Ended
September 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
 
 
1
 
 
$
15
 
 
$
---
 
 
12
 
 
$
3,876
$
51
 
Commercial real estate
 
 
5
 
 
2,538
 
 
 
---
 
 
23
 
 
8,908
144
 
Consumer
 
 
---
 
 
 
---
 
 
 
---
 
 
1
 
 
213
---
 
6
$
2,553
$
---
36
$
12,997
$
195

The following table presents information regarding TDRs executed during the nine month periods ended September 30, 2012 and 2011 (dollars in thousands):
 
Nine Months Ended
September 30, 2012
 
 
Nine Months Ended
September 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
 
 
14
 
 
$
1,351
 
 
$
9
 
 
32
 
 
$
6,124
$
51
 
Commercial real estate
 
 
44
 
 
10,236
 
 
 
86
 
 
73
 
 
24,858
698
 
Consumer
 
 
9
 
 
 
1,462
 
 
 
260
 
 
12
 
1,883
---
 
67
$
13,049
$
355
117
$
32,865
$
749

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 September 30, 2012 and 2011 that are not considered TDRs (dollars in thousands):
Three Months Ended
September 30, 2012
 
Three Months Ended
September 30, 2011
 
 
Number of Loans
 
Outstanding Recorded Balance
 
Number of Loans
Outstanding Recorded Balance
 
 
 
 
 
 
 
Commercial and industrial
148
 
$
27,141
 
166
$
27,615
 
Commercial real estate
92
 
 
31,877
 
112
40,784
 
Consumer
20
 
 
1,014
 
50
2,320
 
260
$
60,032
328
$
70,719
 
The following table presents information regarding modifications and renewals executed during the nine month periods ended September 30, 2012 and 2011 that are not considered TDRs (dollars in thousands):
Nine Months Ended
September 30, 2012
 
Nine Months Ended
September 30, 2011
 
 
Number of Loans
 
Outstanding Recorded Balance
 
Number of Loans
Outstanding Recorded Balance
 
 
 
 
 
 
 
Commercial and industrial
398
 
$
88,059
 
471
$
85,276
 
Commercial real estate
256
 
 
97,583
 
339
120,875
 
Consumer
66
 
 
2,701
 
81
3,234
 
720
$
188,343
891
$
209,385
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 TDRs which had payment defaults during the three month periods ended September 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
September 30, 2012
 
Three Months Ended
September 30, 2011
 
 
Number of Loans
 
Outstanding Recorded Balance
 
Number of Loans
Outstanding Recorded Balance
 
 
 
 
 
 
 
Commercial and industrial
---
 
$
---
 
1
$
66
 
Commercial real estate
1
 
 
136
 
9
1,925
 
Consumer
1
 
 
114
 
2
402
 

The table below presents by class, information regarding TDRs which had payment defaults during the nine month periods ended September 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.

  
Nine Months Ended
September 30, 2012
 
Nine Months Ended
September 30, 2011
 
 
 
Number of Loans
 
Outstanding Recorded Balance
 
Number of Loans
Outstanding Recorded Balance
 
 
 
 
 
 
 
 
Commercial and industrial
3
 
$
112
 
4
$
830
 
Commercial real estate
2
 
 
212
 
9
1,925
 
Consumer
2
 
 
184
 
2
402
 
Risk grade category of commercial loans by class of loans
As of September 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
 
$
1,259
 
 
$
13,920
 
 
$
61,112
 
 
$
115,291
 
 
$
16,893
 
 
$
3,757
 
 
$
6,607
 
 
$
---
 
Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential developed
 
 
---
 
 
 
---
 
 
 
739
 
 
 
8,025
 
 
 
8,684
 
 
 
6,510
 
 
 
5,046
 
 
 
---
 
Unsecured to residential developers
 
 
---
 
 
 
---
 
 
 
100
 
 
 
567
 
 
 
13
 
 
 
---
 
 
 
---
 
 
 
---
 
Vacant and unimproved
 
 
---
 
 
 
1,000
 
 
 
12,810
 
 
 
25,976
 
 
 
14,869
 
 
 
1,354
 
 
 
892
 
 
 
---
 
Commercial development
 
 
---
 
 
 
---
 
 
 
---
 
 
 
2,068
 
 
 
3,089
 
 
 
215
 
 
 
---
 
 
 
---
 
Residential improved
 
 
---
 
 
 
117
 
 
 
9,622
 
 
 
40,958
 
 
 
15,536
 
 
 
9,505
 
 
 
1,374
 
 
 
---
 
Commercial improved
 
 
---
 
 
 
2,473
 
 
 
49,328
 
 
 
153,656
 
 
 
40,932
 
 
 
16,119
 
 
 
1,533
 
 
 
---
 
Manufacturing and industrial
 
 
---
 
 
 
2,173
 
 
 
17,019
 
 
 
46,576
 
 
 
7,450
 
 
 
9,067
 
 
 
32
 
 
 
---
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
1,259
 
 
$
19,683
 
 
$
150,730
 
 
$
393,117
 
 
$
107,466
 
 
$
46,527
 
 
$
15,484
 
 
$
---
 
 
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):
 
 
September 30,
 2012
 
 
December 31, 2011
 
 
 
 
 
 
 
Not classified as impaired
 
$
19,599
 
 
$
29,687
 
Classified as impaired
 
42,412
 
 
 
53,363
 
 
 
 
 
 
 
Total commercial loans classified substandard or worse
 
$
62,011
 
 
$
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):
 
September 30, 2012
 
Residential
Mortgage
 
 
Consumer
Unsecured
 
 
Home
Equity
 
 
Consumer
Other
 
Performing
 
$
176,412
 
 
$
1,727
 
 
$
93,121
 
 
$
13,143
 
Nonperforming
 
 
230
 
 
 
---
 
 
 
286
 
 
 
---
 
Total
 
$
176,642
 
 
$
1,727
 
 
$
93,407
 
 
$
13,143
 

 
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