Loans (Tables)

3 Months Ended

Mar. 31, 2013

Loans

Schedule of loans

	March 31, 2013			December 31, 2012
	(Dollars in thousands)
Loans held-for-investment:
Commercial	$	356,688		$	375,469
Real estate:
Commercial and residential		361,340			354,934
Land and construction		24,611			22,352
Home equity		45,347			43,865
Consumer		14,036			15,714
Loans		802,022			812,334
Deferred loan origination (fees) costs, net		(97	)		(21	)
Loans, including deferred fees and costs		801,925			812,313
Allowance for loan losses		(19,342	)		(19,027	)
Loans, net	$	782,583		$	793,286

Schedule of changes in allowance for loan losses

	Three Months Ended March 31, 2013
	Commercial			Real Estate		Consumer			Total
	(Dollars in thousands)
Balance, beginning of period	$	12,866		$	6,034	$	127		$	19,027
Charge-offs		(840	)		—		—			(840	)
Recoveries		1,150			5		—			1,155
Net recoveries		310			5		—			315
Provision (credit) for loan losses		(721	)		731		(10	)		—
Balance, end of period	$	12,455		$	6,770	$	117		$	19,342

	Three Months Ended March 31, 2012
	Commercial			Real Estate			Consumer		Total
	(Dollars in thousands)
Balance, beginning of period	$	13,215		$	7,338		$	147	$	20,700
Charge-offs		(910	)		(45	)		—		(955	)
Recoveries		461			—			—		461
Net charge-offs		(449	)		(45	)		—		(494	)
Provision (credit) for loan losses		968			(884	)		16		100
Balance, end of period	$	13,734		$	6,409		$	163	$	20,306

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

	March 31, 2013
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	2,031	$	977	$	18	$	3,026
Collectively evaluated for impairment		10,424		5,793		99		16,316
Total allowance balance	$	12,455	$	6,770	$	117	$	19,342
Loans:
Individually evaluated for impairment	$	8,128	$	10,112	$	141	$	18,381
Collectively evaluated for impairment		348,560		421,186		13,895		783,641
Total loan balance	$	356,688	$	431,298	$	14,036	$	802,022

	December 31, 2012
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	1,963	$	760	$	17	$	2,740
Collectively evaluated for impairment		10,903		5,274		110		16,287
Total allowance balance	$	12,866	$	6,034	$	127	$	19,027
Loans:
Individually evaluated for impairment	$	10,161	$	9,336	$	147	$	19,644
Collectively evaluated for impairment		365,308		411,815		15,567		792,690
Total loan balance	$	375,469	$	421,151	$	15,714	$	812,334

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

	March 31, 2013						December 31, 2012
	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	$	3,939	$	3,939	$	—	$	7,829	$	6,978	$	—
Real estate:
Commercial and residential		3,622		3,622		—		2,755		2,741		—
Land and construction		2,177		2,177		—		2,310		2,223		—
Home Equity		2,137		2,137		—		2,141		2,141		—
Total with no related allowance recorded		11,875		11,875		—		15,035		14,083		—
With an allowance recorded:
Commercial		4,272		4,189		2,031		3,678		3,182		1,963
Real estate:
Commercial and residential		1,882		1,882		683		3,183		1,937		465
Home Equity		294		294		294		295		295		295
Consumer		141		141		18		147		147		17
Total with an allowance recorded		6,589		6,506		3,026		7,303		5,561		2,740
Total	$	18,464	$	18,381	$	3,026	$	22,338	$	19,644	$	2,740

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

	Three Months Ended March 31, 2013
			Real Estate
	Commercial		Commercial and Residential		Land and Construction		Home Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	9,145	$	5,090	$	2,200	$	2,434	$	144	$	19,013
Interest income during impairment	$	—	$	—	$	—	$	—	$	—	$	—
Cash-basis interest earned	$	—	$	—	$	—	$	—	$	—	$	—

	Three Months Ended March 31, 2012
			Real Estate
	Commercial		Commercial and Residential		Land and Construction		Home Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	11,450	$	2,773	$	3,002	$	16	$	11	$	17,252
Interest income during impairment	$	—	$	1	$	14	$	—	$	—	$	15
Cash-basis interest earned	$	—	$	1	$	14	$	—	$	—	$	15

Schedule of nonperforming loans

	March 31,
					December 31, 2012
	2013		2012
	(Dollars in thousands)
Nonaccrual loans—held-for-sale	$	—	$	184	$	—
Nonaccrual loans—held-for-investment		16,115		14,005		17,335
Restructured and loans over 90 days past due and still accruing		549		2,155		859
Total nonperforming loans	$	16,664	$	16,344	$	18,194
Other restructured loans	$	1,717	$	431	$	1,450
Impaired loans, excluding loans held-for-sale	$	18,381	$	16,591	$	19,644

Schedule of nonperforming loans by class

	March 31, 2013						December 31, 2012
	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	$	5,863	$	549	$	6,412	$	7,852	$	859	$	8,711
Real estate:
Commercial and residential		5,503		—		5,503		4,676		—		4,676
Land and construction		2,177		—		2,177		2,223		—		2,223
Home equity		2,431		—		2,431		2,437		—		2,437
Consumer		141		—		141		147		—		147
Total	$	16,115	$	549	$	16,664	$	17,335	$	859	$	18,194

Schedule of aging of past due loans by class of loans

	March 31, 2013
	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	$	1,445	$	646	$	4,368	$	6,459	$	350,229	$	356,688
Real estate:
Commercial and residential		—		—		3,485		3,485		357,855		361,340
Land and construction		—		—		69		69		24,542		24,611
Home equity		87		—		2,043		2,130		43,217		45,347
Consumer		103				—		103		13,933		14,036
Total	$	1,635	$	646	$	9,965	$	12,246	$	789,776	$	802,022

	December 31, 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	$	1,699	$	355	$	5,120	$	7,174	$	368,295	$	375,469
Real estate:
Commercial and residential		1,603		—		3,290		4,893		350,041		354,934
Land and construction		—		—		78		78		22,274		22,352
Home equity		742		—		2,045		2,787		41,078		43,865
Consumer		—		—		—		—		15,714		15,714
Total	$	4,044	$	355	$	10,533	$	14,932	$	797,402	$	812,334

Summary of loan portfolio by loan type and credit quality classification

	March 31, 2013						December 31, 2012
	Nonclassified		Classified		Total		Nonclassified		Classified		Total
	(Dollars in thousands)
Commercial	$	340,372	$	16,316	$	356,688	$	355,440	$	20,029	$	375,469
Real estate:
Commercial and residential		351,911		9,429		361,340		345,045		9,889		354,934
Land and construction		22,433		2,178		24,611		18,858		3,494		22,352
Home equity		42,591		2,756		45,347		41,187		2,678		43,865
Consumer		13,656		380		14,036		15,321		393		15,714
Total	$	770,963	$	31,059	$	802,022	$	775,851	$	36,483	$	812,334

Schedule of loans by class modified as troubled debt restructurings

	During the Three Months Ended March 31, 2012
Troubled Debt Restructurings:	Number of Contracts		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
	(Dollars in thousands)
Commercial		2	$	412	$	412
Total		2	$	412	$	412