Loans (Tables)

6 Months Ended

Jun. 30, 2012

Loans

Schedule of loans

	June 30, 2012			December 31, 2011
	(Dollars in thousands)
Loans held-for-investment:
Commercial	$	384,260		$	366,590
Real estate:
Commercial and residential		333,048			311,479
Land and construction		19,822			23,016
Home equity		47,813			52,017
Consumer		13,024			11,166
Loans		797,967			764,268
Deferred loan origination costs and fees, net		139			323
Loans, including deferred costs		798,106			764,591
Allowance for loan losses		(20,023	)		(20,700	)
Loans, net	$	778,083		$	743,891

Schedule of changes in allowance for loan losses

	Three Months Ended June 30, 2012
	Commercial			Real Estate			Consumer			Total
	(Dollars in thousands)
Balance, beginning of period	$	13,734		$	6,409		$	163		$	20,306
Charge-offs		(1,280	)		(101	)		—			(1,381	)
Recoveries		60			223			—			283
Net (charge-offs)/recoveries		(1,220	)		122			—			(1,098	)
Provision/(credit) for loan losses		864			8			(57	)		815
Balance, end of period	$	13,378		$	6,539		$	106		$	20,023

	Three Months Ended June 30, 2011
	Commercial			Real Estate			Consumer			Total
	(Dollars in thousands)
Balance, beginning of period	$	13,594		$	9,539		$	876		$	24,009
Charge-offs		(1,681	)		(601	)		(8	)		(2,290	)
Recoveries		91			401			1			493
Net (charge-offs)/recoveries		(1,590	)		(200	)		(7	)		(1,797	)
Provision/(credit) for loan losses		1,988			(1,177	)		144			955
Balance, end of period	$	13,992		$	8,162		$	1,013		$	23,167

	Six Months Ended June 30, 2012
	Commercial			Real Estate			Consumer			Total
	(Dollars in thousands)
Balance, beginning of period	$	13,215		$	7,338		$	147		$	20,700
Charge-offs		(2,190	)		(146	)		—			(2,336	)
Recoveries		521			223			—			744
Net (charge-offs)/recoveries		(1,669	)		77			—			(1,592	)
Provision/(credit) for loan losses		1,832			(876	)		(41	)		915
Balance, end of period	$	13,378		$	6,539		$	106		$	20,023

	Six Months Ended June 30, 2011
	Commercial			Real Estate			Consumer			Total
	(Dollars in thousands)
Balance, beginning of period	$	13,952		$	10,363		$	889		$	25,204
Charge-offs		(2,800	)		(1,596	)		(8	)		(4,404	)
Recoveries		230			411			1			642
Net (charge-offs)/recoveries		(2,570	)		(1,185	)		(7	)		(3,762	)
Provision/(credit) for loan losses		2,610			(1,016	)		131			1,725
Balance, end of period	$	13,992		$	8,162		$	1,013		$	23,167

Schedule of balance in allowance for loan losses and recorded investment in loans by portfolio segment, based on impairment method

	June 30, 2012
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	1,944	$	82	$	18	$	2,044
Collectively evaluated for impairment		11,434		6,457		88		17,979
Total ending allowance balance	$	13,378	$	6,539	$	106	$	20,023
Loans:
Individually evaluated for impairment	$	11,121	$	3,690	$	160	$	14,971
Collectively evaluated for impairment		373,139		396,993		12,864		782,996
Total ending loan balance	$	384,260	$	400,683	$	13,024	$	797,967

	December 31, 2011
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	2,249	$	76	$	2	$	2,327
Collectively evaluated for impairment		10,966		7,262		145		18,373
Total ending allowance balance	$	13,215	$	7,338	$	147	$	20,700
Loans:
Individually evaluated for impairment	$	11,954	$	5,948	$	12	$	17,914
Collectively evaluated for impairment		354,636		380,564		11,154		746,354
Total ending loan balance	$	366,590	$	386,512	$	11,166	$	764,268

Schedule of loans held-for-investment individually evaluated for impairment by class of loans

	June 30, 2012						December 31, 2011
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
	(Dollars in thousands)
With no related allowance recorded:
Commercial	$	7,421	$	6,470	$	—	$	7,644	$	5,972	$	—
Real estate:
Commercial and residential		1,092		1,092		—		2,916		2,057		—
Land and construction		2,197		2,197		—		3,491		3,039		—
Consumer		—		—		—		—		—		—
Total with no related allowance recorded		10,710		9,759		—		14,051		11,068		—
With an allowance recorded:
Commercial		4,651		4,651		1,944		6,526		5,982		2,249
Real estate:
Commercial and residential		3		3		1		80		80		44
Land and construction		—		—		—		817		740		32
Home Equity		398		398		81		32		32		—
Consumer		160		160		18		12		12		2
Total with an allowance recorded		5,212		5,212		2,044		7,467		6,846		2,327
Total	$	15,922	$	14,971	$	2,044	$	21,518	$	17,914	$	2,327

Schedule of average impaired loans with interest recognized and cash-basis interest earned on impaired loans

	Three Months Ended June 30, 2012
			Real Estate
	Commercial		Commercial and Residential		Land and Construction		Home Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	11,034	$	2,252	$	2,210	$	199	$	86	$	15,781
Interest income during impairment	$	—	$	—	$	—	$	—	$	—	$	—
Cash-basis interest earned	$	—	$	—	$	—	$	—	$	—	$	—

	Three Months Ended June 30, 2011
			Real Estate
	Commercial		Commercial and Residential		Land and Construction		Home Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	13,146	$	2,780	$	7,306	$	141	$	938	$	24,311
Interest income during impairment	$	—	$	—	$	—	$	—	$	—	$	—
Cash-basis interest earned	$	—	$	—	$	—	$	—	$	—	$	—

	Six Months Ended June 30, 2012
			Real Estate
	Commercial		Commercial and Residential		Land and Construction		Home Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	11,341	$	2,214	$	2,733	$	143	$	61	$	16,492
Interest income during impairment	$	—	$	1	$	14	$	—	$	—	$	15
Cash-basis interest earned	$	—	$	1	$	14	$	—	$	—	$	15

	Six Months Ended June 30, 2011
			Real Estate
	Commercial		Commercial and Residential		Land and Construction		Home Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	13,555	$	4,248	$	7,823	$	94	$	925	$	26,645
Interest income during impairment	$	1	$	—	$	—	$	1	$	—	$	2
Cash-basis interest earned	$	—	$	—	$	—	$	1	$	—	$	1

Schedule of nonperforming loans

	June 30,
					December 31, 2011
	2012		2011
	(Dollars in thousands)
Nonaccrual loans—held-for-sale	$	177	$	202	$	186
Nonaccrual loans—held-for-investment		12,890		21,607		14,353
Restructured and loans over 90 days past due and still accruing		1,665		1,073		2,291
Total nonperforming loans	$	14,732	$	22,882	$	16,830
Other restructured loans	$	416	$	1,375	$	1,270
Impaired loans, excluding loans held-for-sale	$	14,971	$	24,055	$	17,914

Schedule of nonperforming loans by class

	June 30, 2012						December 31, 2011
	Nonaccrual		Restructured and Loans Over 90 Days Past Due and Still Accruing		Total		Nonaccrual		Restructured and Loans Over 90 Days Past Due and Still Accruing		Total
	(Dollars in thousands)
Commercial	$	9,040	$	1,665	$	10,705	$	8,876	$	1,803	$	10,679
Real estate:
Commercial and residential		1,104		—		1,104		2,137		—		2,137
Land and construction		2,365		—		2,365		3,514		456		3,970
Home equity		398		—		398		—		32		32
Consumer		160		—		160		12		—		12
Total	$	13,067	$	1,665	$	14,732	$	14,539	$	2,291	$	16,830

Schedule of aging of past due loans by class of loans

	June 30, 2012
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans Not Past Due		Total
	(Dollars in thousands)
Commercial	$	1,718	$	2,794	$	2,189	$	6,701	$	377,559	$	384,260
Real estate:
Commercial and residential		1,164		1,369		101		2,634		330,414		333,048
Land and construction		2,472		—		—		2,472		17,350		19,822
Home equity		—		—		—		—		47,813		47,813
Consumer		—		—		—		—		13,024		13,024
Total	$	5,354	$	4,163	$	2,290	$	11,807	$	786,160	$	797,967

	December 31, 2011
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans Not Past Due		Total
	(Dollars in thousands)
Commercial	$	1,999	$	508	$	3,394	$	5,901	$	360,689	$	366,590
Real estate:
Commercial and residential		2,293		—		—		2,293		309,186		311,479
Land and construction		—		—		1,532		1,532		21,484		23,016
Home equity		753		—		32		785		51,232		52,017
Consumer		—		—		—		—		11,166		11,166
Total	$	5,045	$	508	$	4,958	$	10,511	$	753,757	$	764,268

Summary of loan portfolio by loan type and credit quality classification

	June 30, 2012						December 31, 2011
	Nonclassified		Classified		Total		Nonclassified		Classified		Total
	(Dollars in thousands)
Commercial	$	353,651	$	30,609	$	384,260	$	333,506	$	33,084	$	366,590
Real estate:
Commercial and residential		317,845		15,203		333,048		294,653		16,826		311,479
Land and construction		13,832		5,990		19,822		15,343		7,673		23,016
Home equity		47,168		645		47,813		51,368		649		52,017
Consumer		12,635		389		13,024		10,853		313		11,166
Total	$	745,131	$	52,836	$	797,967	$	705,723	$	58,545	$	764,268

Schedule of loans by class modified as troubled debt restructurings

	During the Three Months Ended June 30, 2012
Troubled Debt Restructurings:	Number of Contracts		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
	(Dollars in thousands)
Consumer		1	$	117	$	117

	During the Six Months Ended June 30, 2012
Troubled Debt Restructurings:	Number of Contracts		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
	(Dollars in thousands)
Commercial		1	$	112	$	112
Consumer		1		117		117
Total		2	$	229	$	229