Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2012

Loans and Allowance for Loan Losses [Abstract]

Components of loan portfolio disaggregated by class of loan and percentage change in total loans

											Percent
	September 30, 2012					December 31, 2011					Increase
	Balance		%			Balance		%			(Decrease)
Commercial:
Commercial and industrial	$	271,814,000		26.3	%	$	260,613,000		24.3	%		4.3	%
Vacant land, land development, and residential construction		56,622,000		5.5			61,959,000		5.8			(8.6	)
Real estate – owner occupied		276,185,000		26.6			271,869,000		25.3			1.6
Real estate – non-owner occupied		299,356,000		28.9			334,165,000		31.2			(10.4	)
Real estate – multi-family and residential rental		53,434,000		5.2			68,299,000		6.4			(21.8	)
Total commercial		957,411,000		92.5			996,905,000		93.0			(4.0	)
Retail:
Home equity and other		39,423,000		3.8			42,336,000		3.9			(6.9	)
1-4 family mortgages		38,454,000		3.7			33,181,000		3.1			15.9
Total retail		77,877,000		7.5			75,517,000		7.0			3.1
Total loans	$	1,035,288,000		100.0	%	$	1,072,422,000		100.0	%		(3.5	)%

Nonperforming loans

	September 30, 2012		December 31, 2011
Loans past due 90 days or more still accruing interest	$	0	$	0
Nonaccrual loans		24,782,000		45,074,000
Total nonperforming loans	$	24,782,000	$	45,074,000

Recorded principal balance of nonaccrual loans, including troubled debt restructurings

	September 30, 2012		December 31, 2011
Commercial:
Commercial and industrial	$	3,870,000	$	5,916,000
Vacant land, land development, and residential construction		2,850,000		3,448,000
Real estate – owner occupied		3,074,000		6,635,000
Real estate – non-owner occupied		11,157,000		24,169,000
Real estate – multi-family and residential rental		1,754,000		2,532,000
Total commercial		22,705,000		42,700,000
Retail:
Home equity and other		733,000		1,013,000
1-4 family mortgages		1,344,000		1,361,000
Total retail		2,077,000		2,374,000
Total nonaccrual loans	$	24,782,000	$	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	$	90,000	$	0	$	1,659,000	$	1,749,000	$	270,065,000	$	271,814,000	$	0
Vacant land, land development, and residential construction		0		0		1,177,000		1,177,000		55,445,000		56,622,000		0
Real estate – owner occupied		0		0		1,633,000		1,633,000		274,552,000		276,185,000		0
Real estate – non-owner occupied		0		234,000		3,811,000		4,045,000		295,311,000		299,356,000		0
Real estate – multi-family and residential rental		0		170,000		588,000		758,000		52,676,000		53,434,000		0
Total commercial		90,000		404,000		8,868,000		9,362,000		948,049,000		957,411,000		0
Retail:
Home equity and other		31,000		13,000		0		44,000		39,379,000		39,423,000		0
1-4 family mortgages		48,000		80,000		642,000		770,000		37,684,000		38,454,000		0
Total retail		79,000		93,000		642,000		814,000		77,063,000		77,877,000		0
Total past due loans	$	169,000	$	497,000	$	9,510,000	$	10,176,000	$	1,025,112,000	$	1,035,288,000	$	0

					Greater								Recorded
	30 – 59		60 – 89		Than 89								Balance > 89
	Days		Days		Days		Total				Total		Days and
	Past Due		Past Due		Past Due		Past Due		Current		Loans		Accruing
Commercial:
Commercial and industrial	$	0	$	2,037,000	$	2,284,000	$	4,321,000	$	256,292,000	$	260,613,000	$	0
Vacant land, land development, and residential construction		0		145,000		2,448,000		2,593,000		59,366,000		61,959,000		0
Real estate – owner occupied		85,000		786,000		2,836,000		3,707,000		268,162,000		271,869,000		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

						Third Quarter		Year-To-Date
	Unpaid					Average		Average
	Contractual		Recorded			Recorded		Recorded
	Principal		Principal		Related	Principal		Principal
	Balance		Balance		Allowance	Balance		Balance
With no related allowance recorded:
Commercial:
Commercial and industrial	$	4,210,000	$	3,289,000		$	3,209,000	$	3,521,000
Vacant land, land development and residential construction		2,279,000		1,166,000			1,480,000		1,959,000
Real estate – owner occupied		4,578,000		3,246,000			3,391,000		3,535,000
Real estate – non-owner occupied		7,493,000		4,979,000			5,832,000		6,850,000
Real estate – multi-family and residential rental		2,172,000		985,000			918,000		841,000
Total commercial		20,732,000		13,665,000			14,830,000		16,706,000
Retail:
Home equity and other		580,000		487,000			482,000		603,000
1-4 family mortgages		1,440,000		779,000			715,000		715,000
Total retail		2,020,000		1,266,000			1,197,000		1,318,000
Total with no related allowance recorded	$	22,752,000	$	14,931,000		$	16,027,000	$	18,024,000

							Third Quarter		Year-To-Date
	Unpaid						Average		Average
	Contractual		Recorded				Recorded		Recorded
	Principal		Principal		Related		Principal		Principal
	Balance		Balance		Allowance		Balance		Balance
With an allowance recorded:
Commercial:
Commercial and industrial	$	3,278,000	$	2,785,000	$	1,358,000	$	3,528,000	$	3,406,000
Vacant land, land development and residential construction		3,305,000		3,117,000		1,465,000		2,981,000		3,529,000
Real estate – owner occupied		3,233,000		2,813,000		1,326,000		4,120,000		5,235,000
Real estate – non-owner occupied		40,590,000		34,521,000		10,061,000		25,220,000		23,085,000
Real estate – multi-family and residential rental		4,693,000		4,477,000		1,287,000		4,748,000		8,306,000
Total commercial		55,099,000		47,713,000		15,497,000		40,597,000		43,561,000
Retail:
Home equity and other		235,000		206,000		206,000		291,000		259,000
1-4 family mortgages		484,000		364,000		99,000		503,000		484,000
Total retail		719,000		570,000		305,000		794,000		743,000
Total with an allowance recorded	$	55,818,000	$	48,283,000	$	15,802,000	$	41,391,000	$	44,304,000
Total impaired loans:
Commercial	$	75,831,000	$	61,378,000	$	15,497,000	$	55,427,000	$	60,267,000
Retail		2,739,000		1,836,000		305,000		1,991,000		2,061,000
Total impaired loans	$	78,570,000	$	63,214,000	$	15,802,000	$	57,418,000	$	62,328,000

						Third Quarter		Year-To-Date
	Unpaid					Average		Average
	Contractual		Recorded			Recorded		Recorded
	Principal		Principal		Related	Principal		Principal
	Balance		Balance		Allowance	Balance		Balance
With no related allowance recorded:
Commercial:
Commercial and industrial	$	4,670,000	$	4,254,000		$	1,353,000	$	1,704,000
Vacant land, land development and residential construction		5,308,000		2,755,000			2,278,000		6,387,000
Real estate – owner occupied		5,525,000		3,572,000			4,071,000		4,233,000
Real estate – non-owner occupied		14,017,000		8,131,000			9,286,000		12,306,000
Real estate – multi-family and residential rental		1,309,000		671,000			1,579,000		979,000
Total commercial		30,829,000		19,383,000			18,567,000		25,609,000
Retail:
Home equity and other		1,000,000		727,000			856,000		503,000
1-4 family mortgages		1,300,000		729,000			363,000		228,000
Total retail		2,300,000		1,456,000			1,219,000		731,000
Total with no related allowance recorded	$	33,129,000	$	20,839,000		$	19,786,000	$	26,340,000

							Third Quarter		Year-To-Date
	Unpaid						Average		Average
	Contractual		Recorded				Recorded		Recorded
	Principal		Principal		Related		Principal		Principal
	Balance		Balance		Allowance		Balance		Balance
With an allowance recorded:
Commercial:
Commercial and industrial	$	3,500,000	$	3,023,000	$	1,172,000	$	4,886,000	$	6,422,000
Vacant land, land development and residential construction		5,551,000		4,267,000		1,799,000		2,064,000		3,814,000
Real estate – owner occupied		8,544,000		7,039,000		2,180,000		4,205,000		5,821,000
Real estate – non-owner occupied		32,331,000		22,009,000		7,319,000		11,291,000		10,650,000
Real estate – multi-family and residential rental		13,913,000		13,172,000		6,175,000		2,428,000		2,887,000
Total commercial		63,839,000		49,510,000		18,645,000		24,874,000		29,594,000
Retail:
Home equity and other		286,000		229,000		215,000		753,000		1,314,000
1-4 family mortgages		517,000		400,000		136,000		778,000		932,000
Total retail		803,000		629,000		351,000		1,531,000		2,246,000
Total with an allowance recorded	$	64,642,000	$	50,139,000	$	18,996,000	$	26,405,000	$	31,840,000
Total impaired loans:
Commercial	$	94,668,000	$	68,893,000	$	18,645,000	$	43,441,000	$	55,203,000
Retail		3,103,000		2,085,000		351,000		2,750,000		2,977,000
Total impaired loans	$	97,771,000	$	70,978,000	$	18,996,000	$	46,191,000	$	58,180,000

Loans by credit quality indicators

			Commercial						Commercial
			Vacant Land,		Commercial		Commercial		Real Estate -
	Commercial		Land Development,		Real Estate -		Real Estate -		Multi-Family
	and		and Residential		Owner		Non-Owner		and Residential
	Industrial		Construction		Occupied		Occupied		Rental
Internal credit risk grade groupings:
Grades 1 – 4	$	168,413,000	$	10,720,000	$	164,089,000	$	126,240,000	$	23,430,000
Grades 5 – 7		98,160,000		41,356,000		105,684,000		126,341,000		26,740,000
Grades 8 – 9		5,241,000		4,546,000		6,412,000		46,775,000		3,264,000
Total commercial	$	271,814,000	$	56,622,000	$	276,185,000	$	299,356,000	$	53,434,000

	Retail		Retail
	Home Equity		1-4 Family
	and Other		Mortgages
Total retail	$	39,423,000	$	38,454,000

			Commercial						Commercial
			Vacant Land,		Commercial		Commercial		Real Estate -
	Commercial		Land Development,		Real Estate -		Real Estate -		Multi-Family
	and		and Residential		Owner		Non-Owner		and Residential
	Industrial		Construction		Occupied		Occupied		Rental
Internal credit risk grade groupings:
Grades 1 – 4	$	163,296,000	$	9,539,000	$	149,010,000	$	123,048,000	$	27,245,000
Grades 5 – 7		89,463,000		44,946,000		111,921,000		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	$	260,613,000	$	61,959,000	$	271,869,000	$	334,165,000	$	68,299,000

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

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

	Commercial			Retail
	Loans			Loans			Unallocated			Total
Allowance for loan losses:
Balance at June 30, 2012	$	26,471,000		$	3,167,000		$	51,000		$	29,689,000
Provision for loan losses		(355,000	)		(35,000	)		(10,000	)		(400,000	)
Charge-offs		(1,548,000	)		(343,000	)		0			(1,891,000	)
Recoveries		326,000			38,000			0			364,000
Ending balance	$	24,894,000		$	2,827,000		$	41,000		$	27,762,000
Allowance for loan losses:
Balance at December 31, 2011	$	33,431,000		$	3,019,000		$	82,000		$	36,532,000
Provision for loan losses		(3,480,000	)		121,000			(41,000	)		(3,400,000	)
Charge-offs		(10,662,000	)		(513,000	)		0			(11,175,000	)
Recoveries		5,605,000			200,000			0			5,805,000
Ending balance	$	24,894,000		$	2,827,000		$	41,000		$	27,762,000
Ending balance: individually evaluated for impairment	$	15,498,000		$	305,000		$	0		$	15,803,000
Ending balance: collectively evaluated for impairment	$	9,396,000		$	2,522,000		$	41,000		$	11,959,000
Total loans:
Ending balance	$	957,411,000		$	77,877,000					$	1,035,288,000
Ending balance: individually evaluated for impairment	$	61,378,000		$	1,836,000					$	63,214,000
Ending balance: collectively evaluated for impairment	$	896,033,000		$	76,041,000					$	972,074,000

	Commercial			Retail
	Loans			Loans			Unallocated			Total
Allowance for loan losses:
Balance at June 30, 2011	$	35,986,000		$	2,641,000		$	93,000		$	38,720,000
Provision for loan losses		586,000			533,000			(19,000	)		1,100,000
Charge-offs		(1,260,000	)		(82,000	)		0			(1,342,000	)
Recoveries		838,000			35,000			0			873,000
Ending balance	$	36,150,000		$	3,127,000		$	74,000		$	39,351,000
Allowance for loan losses:
Balance at December 31, 2010	$	42,358,000		$	2,972,000		$	38,000		$	45,368,000
Provision for loan losses		3,074,000			1,890,000			36,000			5,000,000
Charge-offs		(12,168,000	)		(1,938,000	)		0			(14,106,000	)
Recoveries		2,886,000			203,000			0			3,089,000
Ending balance	$	36,150,000		$	3,127,000		$	74,000		$	39,351,000
Ending balance: individually evaluated for impairment	$	8,543,000		$	581,000		$	0		$	9,124,000
Ending balance: collectively evaluated for impairment	$	27,607,000		$	2,546,000		$	74,000		$	30,227,000
Total loans:
Ending balance	$	1,012,973,000		$	81,064,000					$	1,094,037,000
Ending balance: individually evaluated for impairment	$	47,556,000		$	2,847,000					$	50,403,000
Ending balance: collectively evaluated for impairment	$	965,417,000		$	78,217,000					$	1,043,634,000

Loans modified as troubled debt restructurings

	Number of Contracts		Pre- Modification Recorded Principal Balance		Post- Modification Recorded Principal Balance
Commercial:
Commercial and industrial		1	$	133,000	$	128,000
Vacant land, land development and residential construction		0		0		0
Real estate – owner occupied		0		0		0
Real estate – non-owner occupied		5		18,042,000		18,042,000
Real estate – multi-family and residential rental		0		0		0
Total commercial		6		18,175,000		18,170,000
Retail:
Home equity and other		0		0		0
1-4 family mortgages		0		0		0
Total retail		0		0		0
Total		6	$	18,175,000	$	18,170,000

	Number of Contracts		Pre- Modification Recorded Principal Balance		Post- Modification Recorded Principal Balance
Commercial:
Commercial and industrial		6	$	850,000	$	843,000
Vacant land, land development and residential construction		0		0		0
Real estate – owner occupied		5		1,588,000		1,587,000
Real estate – non-owner occupied		6		22,433,000		22,433,000
Real estate – multi-family and residential rental		0		0		0
Total commercial		17		24,871,000		24,863,000
Retail:
Home equity and other		0		0		0
1-4 family mortgages		0		0		0
Total retail		0		0		0
Total		17	$	24,871,000	$	24,863,000

	Number of Contracts		Pre- Modification Recorded Principal Balance		Post- Modification Recorded Principal Balance
Commercial:
Commercial and industrial		2	$	110,000	$	110,000
Vacant land, land development and residential construction		6		2,219,000		2,219,000
Real estate – owner occupied		0		0		0
Real estate – non-owner occupied		2		701,000		701,000
Real estate – multi-family and residential rental		6		709,000		549,000
Total commercial		16		3,739,000		3,579,000
Retail:
Home equity and other		0		0		0
1-4 family mortgages		0		0		0
Total retail		0		0		0
Total		16	$	3,739,000	$	3,579,000

	Number of Contracts		Pre- Modification Recorded Principal Balance		Post- Modification Recorded Principal Balance
Commercial:
Commercial and industrial		14	$	2,339,000	$	2,330,000
Vacant land, land development and residential construction		8		3,422,000		3,421,000
Real estate – owner occupied		7		3,973,000		3,466,000
Real estate – non-owner occupied		9		7,006,000		7,004,000
Real estate – multi-family and residential rental		10		1,450,000		1,290,000
Total commercial		48		18,190,000		17,511,000
Retail:
Home equity and other		0		0		0
1-4 family mortgages		0		0		0
Total retail		0		0		0
Total		48	$	18,190,000	$	17,511,000

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

	Number of Contracts		Recorded Principal Balance
Commercial:
Commercial and industrial		0	$	0
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		0		0
Retail:
Home equity and other		0		0
1-4 family mortgages		0		0
Total retail		0		0
Total		0	$	0

	Number of Contracts		Recorded Principal Balance
Commercial:
Commercial and industrial		0	$	0
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		0		0
Retail:
Home equity and other		0		0
1-4 family mortgages		0		0
Total retail		0		0
Total		0	$	0

	Number of Contracts		Recorded Principal Balance
Commercial:
Commercial and industrial		1	$	121,000
Vacant land, land development and residential construction		0		0
Real estate – owner occupied		0		0
Real estate – non-owner occupied		1		793,000
Real estate – multi-family and residential rental		2		135,000
Total commercial		4		1,049,000
Retail:
Home equity and other		0		0
1-4 family mortgages		0		0
Total retail		0		0
Total		4	$	1,049,000

	Number of Contracts		Recorded Principal Balance
Commercial:
Commercial and industrial		2	$	280,000
Vacant land, land development and residential construction		0		0
Real estate – owner occupied		0		0
Real estate – non-owner occupied		1		793,000
Real estate – multi-family and residential rental		2		135,000
Total commercial		5		1,208,000
Retail:
Home equity and other		0		0
1-4 family mortgages		0		0
Total retail		0		0
Total		5	$	1,208,000