Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2012

Loans and Allowance for Loan Losses [Abstract]

Components of segments portfolio and percentage change in total loans

	June 30, 2012					December 31, 2011					Percent Increase (Decrease)
	Balance		%			Balance		%
Commercial:
Commercial and industrial	$	277,428,000		26.2	%	$	266,548,000		24.8	%		4.1	%
Vacant land, land development, and residential construction		58,774,000		5.5			63,467,000		5.9			(7.4	)
Real estate – owner occupied		276,361,000		26.1			264,426,000		24.7			4.5
Real estate – non-owner occupied		318,476,000		30.0			334,165,000		31.2			(4.7	)
Real estate – multi-family and residential rental		56,452,000		5.3			68,299,000		6.4			(17.3	)
Total commercial		987,491,000		93.1			996,905,000		93.0			(0.9	)
Retail:
Home equity and other		40,883,000		3.9			42,336,000		3.9			(3.4	)
1-4 family mortgages		32,622,000		3.0			33,181,000		3.1			(1.7	)
Total retail		73,505,000		6.9			75,517,000		7.0			(2.7	)
Total loans	$	1,060,996,000		100.0	%	$	1,072,422,000		100.0	%		(1.1	)%

Nonperforming loans

	June 30, 2012		December 31, 2011
Loans past due 90 days or more still accruing interest	$	0	$	0
Nonaccrual loans		28,524,000		45,074,000
Total nonperforming loans	$	28,524,000	$	45,074,000

Recorded principal balance of nonaccrual loans, including troubled debt restructurings

	June 30, 2012		December 31, 2011
Commercial:
Commercial and industrial	$	4,371,000	$	5,916,000
Vacant land, land development, and residential construction		3,195,000		3,448,000
Real estate – owner occupied		3,371,000		6,635,000
Real estate – non-owner occupied		13,144,000		24,169,000
Real estate – multi-family and residential rental		2,048,000		2,532,000
Total commercial		26,129,000		42,700,000
Retail:
Home equity and other		894,000		1,013,000
1-4 family mortgages		1,501,000		1,361,000
Total retail		2,395,000		2,374,000
Total nonaccrual loans	$	28,524,000	$	45,074,000

Age analysis of past due loans

	30 – 59 Days Past Due		60 – 89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Current		Total Loans		Recorded Balance > 89 Days and Accruing
Commercial:
Commercial and industrial	$	282,000	$	197,000	$	1,856,000	$	2,335,000	$	275,093,000	$	277,428,000	$	0
Vacant land, land development, and residential construction		0		0		1,506,000		1,506,000		57,268,000		58,774,000		0
Real estate – owner occupied		0		52,000		1,665,000		1,717,000		274,644,000		276,361,000		0
Real estate – non-owner occupied		0		800,000		4,181,000		4,981,000		313,495,000		318,476,000		0
Real estate – multi-family and residential rental		0		0		795,000		795,000		55,657,000		56,452,000		0
Total commercial		282,000		1,049,000		10,003,000		11,334,000		976,157,000		987,491,000		0
Retail:
Home equity and other		159,000		0		0		159,000		40,724,000		40,883,000		0
1-4 family mortgages		84,000		0		505,000		589,000		32,033,000		32,622,000		0
Total retail		243,000		0		505,000		748,000		72,757,000		73,505,000		0
Total past due loans	$	525,000	$	1,049,000	$	10,508,000	$	12,082,000	$	1,048,914,000	$	1,060,996,000	$	0

	30 – 59 Days Past Due		60 – 89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Current		Total Loans		Recorded Balance > 89 Days and Accruing
Commercial:
Commercial and industrial	$	0	$	2,037,000	$	2,284,000	$	4,321,000	$	262,227,000	$	266,548,000	$	0
Vacant land, land development, and residential construction		0		145,000		2,448,000		2,593,000		60,874,000		63,467,000		0
Real estate – owner occupied		85,000		786,000		2,836,000		3,707,000		260,719,000		264,426,000		0
Real estate – non-owner occupied		456,000		728,000		9,837,000		11,021,000		323,144,000		334,165,000		0
Real estate – multi-family and residential rental		42,000		443,000		957,000		1,442,000		66,857,000		68,299,000		0
Total commercial		583,000		4,139,000		18,362,000		23,084,000		973,821,000		996,905,000		0
Retail:
Home equity and other		46,000		0		242,000		288,000		42,048,000		42,336,000		0
1-4 family mortgages		274,000		133,000		445,000		852,000		32,329,000		33,181,000		0
Total retail		320,000		133,000		687,000		1,140,000		74,377,000		75,517,000		0
Total past due loans	$	903,000	$	4,272,000	$	19,049,000	$	24,224,000	$	1,048,198,000	$	1,072,422,000	$	0

Impaired loans

	Unpaid Contractual Principal Balance		Recorded Principal Balance		Related Allowance	Second Quarter Average Recorded Principal Balance		Year-To-Date Average Recorded Principal Balance
With no related allowance recorded:
Commercial:
Commercial and industrial	$	3,896,000	$	3,129,000		$	3,270,000	$	3,598,000
Vacant land, land development and residential construction		2,898,000		1,794,000			1,958,000		2,224,000
Real estate – owner occupied		5,100,000		3,535,000			3,661,000		3,631,000
Real estate – non-owner occupied		11,639,000		6,685,000			7,145,000		7,473,000
Real estate – multi-family and residential rental		4,027,000		852,000			855,000		794,000
Total commercial		27,560,000		15,995,000			16,889,000		17,720,000
Retail:
Home equity and other		500,000		477,000			600,000		642,000
1-4 family mortgages		1,151,000		651,000			675,000		693,000
Total retail		1,651,000		1,128,000			1,275,000		1,335,000
Total with no related allowance recorded	$	29,211,000	$	17,123,000		$	18,164,000	$	19,055,000

	Unpaid Contractual Principal Balance		Recorded Principal Balance		Related Allowance		Second Quarter Average Recorded Principal Balance		Year-To-Date Average Recorded Principal Balance
With an allowance recorded:
Commercial:
Commercial and industrial	$	4,871,000	$	4,272,000	$	1,680,000	$	3,909,000	$	3,613,000
Vacant land, land development and residential construction		3,185,000		2,844,000		1,416,000		3,366,000		3,667,000
Real estate – owner occupied		5,699,000		5,427,000		2,343,000		5,545,000		6,043,000
Real estate – non-owner occupied		21,331,000		15,919,000		5,907,000		17,904,000		19,272,000
Real estate – multi-family and residential rental		5,773,000		5,021,000		1,238,000		7,787,000		9,582,000
Total commercial		40,859,000		33,483,000		12,584,000		38,511,000		42,177,000
Retail:
Home equity and other		438,000		375,000		362,000		300,000		277,000
1-4 family mortgages		850,000		642,000		254,000		586,000		524,000
Total retail		1,288,000		1,017,000		616,000		886,000		801,000
Total with an allowance recorded	$	42,147,000	$	34,500,000	$	13,200,000	$	39,397,000	$	42,978,000
Total impaired loans:
Commercial	$	68,419,000	$	49,478,000	$	12,584,000	$	55,400,000	$	59,897,000
Retail		2,939,000		2,145,000		616,000		2,161,000		2,136,000
Total impaired loans	$	71,358,000	$	51,623,000	$	13,200,000	$	57,561,000	$	62,033,000

	Unpaid Contractual Principal Balance		Recorded Principal Balance		Related Allowance	Second Quarter Average Recorded Principal Balance		Year-To-Date Average Recorded Principal Balance
With no related allowance recorded:
Commercial:
Commercial and industrial	$	4,670,000	$	4,254,000		$	1,871,000	$	1,959,000
Vacant land, land development and residential construction		5,308,000		2,755,000			1,587,000		4,415,000
Real estate – owner occupied		5,525,000		3,572,000			4,187,000		4,432,000
Real estate – non-owner occupied		14,017,000		8,131,000			10,453,000		12,227,000
Real estate – multi-family and residential rental		1,309,000		671,000			1,520,000		1,364,000
Total commercial		30,829,000		19,383,000			19,618,000		24,397,000
Retail:
Home equity and other		1,000,000		727,000			768,000		562,000
1-4 family mortgages		1,300,000		729,000			427,000		330,000
Total retail		2,300,000		1,456,000			1,195,000		892,000
Total with no related allowance recorded	$	33,129,000	$	20,839,000		$	20,813,000	$	25,289,000

	Unpaid Contractual Principal Balance		Recorded Principal Balance		Related Allowance		Second Quarter Average Recorded Principal Balance		Year-To-Date Average Recorded Principal Balance
With an allowance recorded:
Commercial:
Commercial and industrial	$	3,500,000	$	3,023,000	$	1,172,000	$	3,913,000	$	4,916,000
Vacant land, land development and residential construction		5,551,000		4,267,000		1,799,000		6,812,000		5,998,000
Real estate – owner occupied		8,544,000		7,039,000		2,180,000		4,330,000		4,972,000
Real estate – non-owner occupied		32,331,000		22,009,000		7,319,000		9,757,000		9,129,000
Real estate – multi-family and residential rental		13,913,000		13,172,000		6,175,000		3,026,000		3,175,000
Total commercial		63,839,000		49,510,000		18,645,000		27,838,000		28,190,000
Retail:
Home equity and other		286,000		229,000		215,000		1,005,000		1,307,000
1-4 family mortgages		517,000		400,000		136,000		573,000		685,000
Total retail		803,000		629,000		351,000		1,578,000		1,992,000
Total with an allowance recorded	$	64,642,000	$	50,139,000	$	18,996,000	$	29,416,000	$	30,182,000
Total impaired loans:
Commercial	$	94,668,000	$	68,893,000	$	18,645,000	$	47,456,000	$	52,587,000
Retail		3,103,000		2,085,000		351,000		2,773,000		2,884,000
Total impaired loans	$	97,771,000	$	70,978,000	$	18,996,000	$	50,229,000	$	55,471,000

Loans by credit quality indicators

	Commercial and Industrial		Commercial Vacant Land, Land Development, and Residential Construction		Commercial Real Estate - Owner Occupied		Commercial Real Estate - Non-Owner Occupied		Commercial Real Estate - Multi-Family and Residential Rental
Internal credit risk grade groupings:
Grades 1 – 4	$	176,712,000	$	10,645,000	$	164,083,000	$	137,302,000	$	24,327,000
Grades 5 – 7		94,025,000		43,223,000		99,216,000		139,841,000		28,446,000
Grades 8 – 9		6,691,000		4,906,000		13,062,000		41,333,000		3,679,000
Total commercial	$	277,428,000	$	58,774,000	$	276,361,000	$	318,476,000	$	56,452,000

	Retail Home Equity and Other		Retail 1-4 Family Mortgages
Total retail	$	40,883,000	$	32,622,000

	Commercial and Industrial		Commercial Vacant Land, Land Development, and Residential Construction		Commercial Real Estate - Owner Occupied		Commercial Real Estate - Non-Owner Occupied		Commercial Real Estate - Multi-Family and Residential Rental
Internal credit risk grade groupings:
Grades 1 – 4	$	169,231,000	$	9,539,000	$	143,075,000	$	123,048,000	$	27,245,000
Grades 5 – 7		89,463,000		46,454,000		110,413,000		164,049,000		26,278,000
Grades 8 – 9		7,854,000		7,474,000		10,938,000		47,068,000		14,776,000
Total commercial	$	266,548,000	$	63,467,000	$	264,426,000	$	334,165,000	$	68,299,000

	Retail Home Equity and Other		Retail 1-4 Family Mortgages
Total retail	$	42,336,000	$	33,181,000

Activity in allowance for loan losses and the recorded investments in loans

	Commercial Loans			Retail Loans			Unallocated			Total
Allowance for loan losses:
Balance at March 31, 2012	$	27,808,000		$	3,048,000		$	87,000		$	30,943,000
Provision for loan losses		(3,026,000	)		62,000			(36,000	)		(3,000,000	)
Charge-offs		(1,650,000	)		(58,000	)		0			(1,708,000	)
Recoveries		3,339,000			115,000			0			3,454,000
Ending balance	$	26,471,000		$	3,167,000		$	51,000		$	29,689,000
Allowance for loan losses:
Balance at December 31, 2011	$	33,431,000		$	3,019,000		$	82,000		$	36,532,000
Provision for loan losses		(3,125,000	)		156,000			(31,000	)		(3,000,000	)
Charge-offs		(9,113,000	)		(171,000	)		0			(9,284,000	)
Recoveries		5,278,000			163,000			0			5,441,000
Ending balance	$	26,471,000		$	3,167,000		$	51,000		$	29,689,000
Ending balance: individually evaluated for impairment	$	12,584,000		$	616,000		$	0		$	13,200,000
Ending balance: collectively evaluated for impairment	$	13,887,000		$	2,551,000		$	51,000		$	16,489,000
Total loans:
Ending balance	$	987,491,000		$	73,505,000					$	1,060,996,000
Ending balance: individually evaluated for impairment	$	49,478,000		$	2,145,000					$	51,623,000
Ending balance: collectively evaluated for impairment	$	938,013,000		$	71,360,000					$	1,009,373,000

	Commercial Loans			Retail Loans			Unallocated		Total
Allowance for loan losses:
Balance at March 31, 2011	$	39,506,000		$	2,534,000		$	79,000	$	42,119,000
Provision for loan losses		1,102,000			584,000			14,000		1,700,000
Charge-offs		(6,170,000	)		(563,000	)		0		(6,733,000	)
Recoveries		1,549,000			85,000			0		1,634,000
Ending balance	$	35,987,000		$	2,640,000		$	93,000	$	38,720,000
Allowance for loan losses:
Balance at December 31, 2010	$	42,359,000		$	2,972,000		$	37,000	$	45,368,000
Provision for loan losses		2,488,000			1,356,000			56,000		3,900,000
Charge-offs		(10,908,000	)		(1,856,000	)		0		(12,764,000	)
Recoveries		2,048,000			168,000			0		2,216,000
Ending balance	$	35,987,000		$	2,640,000		$	93,000	$	38,720,000
Ending balance: individually evaluated for impairment	$	5,643,000		$	440,000		$	0	$	6,083,000
Ending balance: collectively evaluated for impairment	$	30,344,000		$	2,200,000		$	93,000	$	32,637,000
Total loans:
Ending balance	$	1,045,406,000		$	77,593,000				$	1,122,999,000
Ending balance: individually evaluated for impairment	$	39,324,000		$	2,653,000				$	41,977,000
Ending balance: collectively evaluated for impairment	$	1,006,082,000		$	74,940,000				$	1,081,022,000

Loans modified as troubled debt restructurings

	Number of Contracts		Pre- Modification Recorded Principal Balance		Post- Modification Recorded Principal Balance
Commercial:
Commercial and industrial		3	$	190,000	$	190,000
Vacant land, land development and residential construction		0		0		0
Real estate – owner occupied		2		567,000		567,000
Real estate – non-owner occupied		0		0		0
Real estate – multi-family and residential rental		1		100,000		100,000
Total commercial		6		857,000		857,000
Retail:
Home equity and other		0		0		0
1-4 family mortgages		0		0		0
Total retail		0		0		0
Total		6	$	857,000	$	857,000

	Number of Contracts		Pre- Modification Recorded Principal Balance		Post- Modification Recorded Principal Balance
Commercial:
Commercial and industrial		6	$	773,000	$	770,000
Vacant land, land development and residential construction		0		0		0
Real estate – owner occupied		5		1,613,000		1,612,000
Real estate – non-owner occupied		1		4,391,000		4,391,000
Real estate – multi-family and residential rental		1		100,000		100,000
Total commercial		13		6,877,000		6,873,000
Retail:
Home equity and other		0		0		0
1-4 family mortgages		0		0		0
Total retail		0		0		0
Total		13	$	6,877,000	$	6,873,000

Loans, modified as troubled debt restructurings within the previous twelve months, that became over 30 days past due within the six months ended June 30, 2012

	Number of Contracts		Recorded Principal Balance
Commercial:
Commercial and industrial		1	$	51,000
Vacant land, land development and residential construction		0		0
Real estate – owner occupied		0		0
Real estate – non-owner occupied		0		0
Real estate – multi-family and residential rental		0		0
Total commercial		1		51,000
Retail:
Home equity and other		0		0
1-4 family mortgages		0		0
Total retail		0		0
Total		1	$	51,000