Loans and Allowance for Loan Losses (Tables)
|
12 Months Ended |
Dec. 31, 2012
|
Receivables [Abstract] |
|
Past Due Financing Receivables |
Outstanding loans by class and payment aging as of December 31, 2012 and 2011 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Loan Aging Analysis by Class as of December 31, 2012 and 2011 | (dollars in thousands) | Commercial |
| | Commercial real estate, owner-occupied |
| | Commercial real estate, investor |
| | Construction |
| | Home equity |
| | Other residential 1 |
| | Installment and other consumer |
| | Total |
| December 31, 2012 | | | | | | | | | | | | | | | | 30-59 days past due | $ | 29 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 294 |
| | $ | 167 |
| | $ | 98 |
| | $ | 588 |
| 60-89 days past due | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Greater than 90 days past due (non-accrual) 2 | 4,893 |
| | 1,403 |
| | 6,843 |
| | 2,239 |
| | 545 |
| | 1,196 |
| | 533 |
| | 17,652 |
| Total past due | 4,922 |
| | 1,403 |
| | 6,843 |
| | 2,239 |
| | 839 |
| | 1,363 |
| | 631 |
| | 18,240 |
| Current | 171,509 |
| | 195,003 |
| | 502,163 |
| | 28,426 |
| | 92,398 |
| | 48,069 |
| | 18,144 |
| | 1,055,712 |
| Total loans 3 | $ | 176,431 |
| | $ | 196,406 |
| | $ | 509,006 |
| | $ | 30,665 |
| | $ | 93,237 |
| | $ | 49,432 |
| | $ | 18,775 |
| | $ | 1,073,952 |
| Non-accrual loans to total loans | 2.8 | % | | 0.7 | % | | 1.3 | % | | 7.3 | % | | 0.6 | % | | 2.4 | % | | 2.8 | % | | 1.6 | % | December 31, 2011 | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| 30-59 days past due | $ | 371 |
| | $ | 576 |
| | $ | 6,060 |
| | $ | — |
| | $ | 195 |
| | $ | — |
| | $ | 7 |
| | $ | 7,209 |
| 60-89 days past due | 139 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 34 |
| | 173 |
| Greater than 90 days past due (non-accrual) 2 | 2,955 |
| | 2,033 |
| | 741 |
| | 3,014 |
| | 766 |
| | 1,942 |
| | 519 |
| | 11,970 |
| Total past due | 3,465 |
| | 2,609 |
| | 6,801 |
| | 3,014 |
| | 961 |
| | 1,942 |
| | 560 |
| | 19,352 |
| Current | 172,325 |
| | 172,096 |
| | 439,624 |
| | 48,943 |
| | 97,082 |
| | 59,560 |
| | 22,172 |
| | 1,011,802 |
| Total loans 3 | $ | 175,790 |
| | $ | 174,705 |
| | $ | 446,425 |
| | $ | 51,957 |
| | $ | 98,043 |
| | $ | 61,502 |
| | $ | 22,732 |
| | $ | 1,031,154 |
| Non-accrual loans to total loans | 1.7 | % | | 1.2 | % | | 0.2 | % | | 5.8 | % | | 0.8 | % | | 3.2 | % | | 2.3 | % | | 1.2 | % |
1 Our residential loan portfolio includes no sub-prime loans, nor is it our normal practice to underwrite loans commonly referred to as "Alt-A mortgages", the characteristics of which are loans lacking full documentation, borrowers having low FICO scores or higher loan-to-value ratios.
2 Amounts include $1.6 million and $2.5 million of Purchased Credit Impaired ("PCI") loans that have stopped accreting interest at December 31, 2012 and 2011, respectively, and exclude accreting PCI loans of $3.0 million and $3.4 million at December 31, 2012 and 2011, respectively, as their accretable yield interest recognition is independent from the underlying contractual loan delinquency status. There were no accruing loans past due more than ninety days at December 31, 2012 or 2011.
3 Amounts were net of deferred loan fees of $769 thousand and $1.6 million at December 31, 2012 and 2011, respectively. Amounts were also net of unaccreted purchase discounts on non-PCI loans of $2.1 million and $2.9 million at December 31, 2012 and 2011, respectively. |
Financing Receivable Credit Quality Indicators |
The following table represents our analysis of loans by internally assigned grades, including the PCI loans, at December 31, 2012 and 2011: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (in thousands) | Commercial |
| | Commercial real estate, owner-occupied |
| | Commercial real estate, investor |
| | Construction |
| | Home equity |
| | Other residential |
| | Installment and other consumer |
| | Purchased credit-impaired |
| | Total |
| Credit Risk Profile by Internally Assigned Grade: | | | | | | | | | | | | | December 31, 2012 | | | | | | | | | | | | | | | | | Pass | $ | 148,771 |
| | $ | 170,553 |
| | $ | 489,978 |
| | $ | 26,287 |
| | $ | 86,957 |
| | $ | 45,634 |
| | $ | 17,809 |
| | $ | 1,862 |
| | $ | 987,851 |
| Special Mention | 13,267 |
| | 20,346 |
| | 8,671 |
| | 1,970 |
| | 2,931 |
| | 1,067 |
| | — |
| | 933 |
| | 49,185 |
| Substandard | 13,753 |
| | 2,992 |
| | 8,963 |
| | 2,408 |
| | 3,349 |
| | 2,731 |
| | 966 |
| | 1,754 |
| | 36,916 |
| Doubtful | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Total loans | $ | 175,791 |
| | $ | 193,891 |
| | $ | 507,612 |
| | $ | 30,665 |
| | $ | 93,237 |
| | $ | 49,432 |
| | $ | 18,775 |
| | $ | 4,549 |
| | $ | 1,073,952 |
| | | | | | | | | | | | | | | | | | | December 31, 2011 | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Pass | $ | 148,805 |
| | $ | 146,449 |
| | $ | 433,307 |
| | $ | 32,272 |
| | $ | 93,189 |
| | $ | 54,711 |
| | $ | 21,648 |
| | $ | 1,541 |
| | $ | 931,922 |
| Special Mention | 7,874 |
| | 18,434 |
| | 4,877 |
| | — |
| | 838 |
| | 2,010 |
| | — |
| | 529 |
| | 34,562 |
| Substandard | 17,897 |
| | 6,609 |
| | 6,617 |
| | 19,492 |
| | 3,677 |
| | 4,420 |
| | 895 |
| | 3,563 |
| | 63,170 |
| Doubtful | 98 |
| | — |
| | — |
| | 193 |
| | 339 |
| | 361 |
| | 189 |
| | 320 |
| | 1,500 |
| Total loans | $ | 174,674 |
| | $ | 171,492 |
| | $ | 444,801 |
| | $ | 51,957 |
| | $ | 98,043 |
| | $ | 61,502 |
| | $ | 22,732 |
| | $ | 5,953 |
| | $ | 1,031,154 |
|
|
Troubled Debt Restructurings on Financing Receivables |
The table below presents the following information for TDRs modified during the periods presented: number of contracts modified, the recorded investment in the loans prior to modification, and the recorded investment in the loans after the loans were restructured. Modifications during the year ended December 31, 2012 primarily involved payment extensions, forbearances, and interest rate concessions, while modifications in 2011 involved interest rate concessions, maturity extensions, and payment deferral, or some combination thereof. There were three commercial loans, two commercial real estate loans and one construction loan modified as troubled debt restructurings within the previous twelve months with recorded investments of $4.5 million that subsequently defaulted and $730 thousand were charged-off, net of recoveries, in the year ended December 31, 2012. We are reporting these defaulted TDRs based on a payment default definition of more than ninety days past due. There were three TDRs in 2011 with loan balances of $1.0 million that subsequently defaulted within twelve months of restructuring and were charged-off during 2011. The table below excludes fully paid-off or fully charged-off TDR loans.
| | | | | | | | | | | | | | | | (dollars in thousands) | Number of Contracts Modified |
| | Pre-Modification Outstanding Recorded Investment |
| | Post-Modification Outstanding Recorded Investment |
| | Post-Modification Outstanding Recorded Investment at period end |
| Troubled Debt Restructurings during the year ended December 31, 2012: | |
| | |
| | |
| | | Commercial | 14 |
| | $ | 9,980 |
| | $ | 9,903 |
| | $ | 5,965 |
| Construction | 2 |
| | 2,793 |
| | 2,793 |
| | 1,760 |
| Home Equity | 2 |
| | 472 |
| | 473 |
| | 469 |
| Other residential | 2 |
| | 1,422 |
| | 1,401 |
| | 1,392 |
| Installment and other consumer | 2 |
| | 231 |
| | 231 |
| | 228 |
| Total | 22 |
| | $ | 14,898 |
| | $ | 14,801 |
| | $ | 9,814 |
| Troubled Debt Restructurings during the year ended December 31, 2011: | |
| | |
| | |
| | | Commercial | 27 |
| | $ | 5,854 |
| | $ | 5,940 |
| | $ | 4,969 |
| Commercial real estate, owner-occupied | 2 |
| | 1,366 |
| | 1,403 |
| | 1,403 |
| Construction | 2 |
| | 817 |
| | 817 |
| | 800 |
| Home Equity | 3 |
| | 478 |
| | 469 |
| | 467 |
| Other residential | 3 |
| | 1,467 |
| | 1,467 |
| | 1,464 |
| Installment and other consumer | 13 |
| | 1,607 |
| | 1,605 |
| | 1,552 |
| Total | 50 |
| | $ | 11,589 |
| | $ | 11,701 |
| | $ | 10,655 |
|
The table below summarizes outstanding TDR loans by loan class as of December 31, 2012 and 2011. The summary includes those TDRs that are on nonaccrual status and those that continue to accrue interest.
| | | | | | | | | | | | | (in thousands) | | | | | As of | Recorded investment in Troubled Debt Restructurings 1 | | | | | December 31, 2012 |
| | December 31, 2011 |
| | | | | | | | | Commercial | | | | | $ | 9,470 |
| | $ | 4,969 |
| Commercial real estate, owner-occupied | | | | | 1,403 |
| | 1,403 |
| Construction | | | | | 1,929 |
| | 800 |
| Home equity | | | | | 908 |
| | 467 |
| Other residential | | | | | 2,831 |
| | 1,464 |
| Installment and other consumer | | | | | 1,743 |
| | 1,552 |
| Total |
| |
| | $ | 18,284 |
| | $ | 10,655 |
|
1 Includes $10.8 million and $6.3 million of TDR loans that were accruing interest as of December 31, 2012 and 2011, respectively. |
Impaired Financing Receivables |
The table below summarizes information on impaired loans and their related allowance. Total impaired loans include non-accrual loans, accruing TDR loans and accreting PCI loans that have experienced post-acquisition declines in cash flows expected to be collected. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (dollars in thousands) | | Commercial |
| | Commercial real estate, owner-occupied |
| | Commercial real estate, investor |
| | Construction |
| | Home equity |
| | Other residential |
| | Installment and other consumer |
| | Total |
| December 31, 2012 | | | | | | | | | | | | | | | Recorded investment in impaired loans: | | | | | | | | | | | | | With no specific allowance recorded | | $ | 6,825 |
| | $ | 1,403 |
| | $ | 3,725 |
| | $ | 2,328 |
| | $ | 931 |
| | $ | 2,598 |
| | $ | 978 |
| | $ | 18,788 |
| With a specific allowance recorded | | 2,645 |
| | 471 |
| | 4,513 |
| | 1,840 |
| | 261 |
| | 715 |
| | 1,070 |
| | 11,515 |
| Total recorded investment in impaired loans | | $ | 9,470 |
| | $ | 1,874 |
| | $ | 8,238 |
| | $ | 4,168 |
| | $ | 1,192 |
| | $ | 3,313 |
| | $ | 2,048 |
| | $ | 30,303 |
| Unpaid principal balance of impaired loans: | | |
| | |
| | |
| | |
| | |
| | |
| With no specific allowance recorded | | $ | 7,633 |
| | $ | 3,060 |
| | $ | 5,717 |
| | $ | 2,514 |
| | $ | 1,417 |
| | $ | 2,598 |
| | $ | 1,020 |
| | $ | 23,959 |
| With a specific allowance recorded | | 2,930 |
| | 966 |
| | 4,887 |
| | 4,519 |
| | 324 |
| | 715 |
| | 1,070 |
| | 15,411 |
| Total unpaid principal balance of impaired loans | | $ | 10,563 |
| | $ | 4,026 |
| | $ | 10,604 |
| | $ | 7,033 |
| | $ | 1,741 |
| | $ | 3,313 |
| | $ | 2,090 |
| | $ | 39,370 |
| Specific allowance | | $ | 1,131 |
| | $ | 26 |
| | $ | 374 |
| | $ | 118 |
| | $ | 154 |
| | $ | 120 |
| | $ | 431 |
| | $ | 2,354 |
| Average recorded investment in impaired loans during 2012 | | $ | 11,772 |
| | $ | 1,538 |
| | $ | 5,135 |
| | $ | 12,909 |
| | $ | 1,314 |
| | $ | 2,509 |
| | $ | 2,151 |
| | $ | 37,328 |
| Interest income recognized on impaired loans during 2012 | | $ | 803 |
| | $ | 111 |
| | $ | 512 |
| | $ | 570 |
| | $ | 32 |
| | $ | 175 |
| | $ | 96 |
| | $ | 2,299 |
| | |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| December 31, 2011 | | |
| | |
| | |
| | |
| | |
| | |
| | |
| Recorded investment in impaired loans: | | |
| | |
| | |
| | |
| | |
| | |
| With no specific allowance recorded | | $ | 2,866 |
| | $ | 2,195 |
| | $ | 648 |
| | $ | 2,395 |
| | $ | 591 |
| | $ | 1,464 |
| | $ | 1,022 |
| | $ | 11,181 |
| With a specific allowance recorded | | 2,969 |
| | 1,018 |
| | 623 |
| | 909 |
| | 454 |
| | 1,942 |
| | 1,049 |
| | 8,964 |
| Total recorded investment in impaired loans | | $ | 5,835 |
| | $ | 3,213 |
| | $ | 1,271 |
| | $ | 3,304 |
| | $ | 1,045 |
| | $ | 3,406 |
| | $ | 2,071 |
| | $ | 20,145 |
| Unpaid principal balance of impaired loans: | | |
| | |
| | |
| | |
| | |
| | |
| With no specific allowance recorded | | $ | 4,730 |
| | $ | 5,140 |
| | $ | 648 |
| | $ | 5,007 |
| | $ | 1,077 |
| | $ | 1,464 |
| | $ | 1,064 |
| | $ | 19,130 |
| With a specific allowance recorded | | 4,598 |
| | 1,862 |
| | 825 |
| | 1,095 |
| | 544 |
| | 1,942 |
| | 1,049 |
| | 11,915 |
| Total recorded investment in impaired loans | | $ | 9,328 |
| | $ | 7,002 |
| | $ | 1,473 |
| | $ | 6,102 |
| | $ | 1,621 |
| | $ | 3,406 |
| | $ | 2,113 |
| | $ | 31,045 |
| Specific allowance | | $ | 1,285 |
| | $ | 169 |
| | $ | 163 |
| | $ | 194 |
| | $ | 262 |
| | $ | 408 |
| | $ | 465 |
| | $ | 2,946 |
| Average recorded investment in impaired loans during 2011 | | $ | 4,695 |
| | $ | 1,873 |
| | $ | 595 |
| | $ | 3,505 |
| | $ | 813 |
| | $ | 1,612 |
| | $ | 1,844 |
| | $ | 14,937 |
| Interest income recognized on impaired loans during 2011 | | $ | 102 |
| | $ | — |
| | $ | 38 |
| | $ | — |
| | $ | 14 |
| | $ | 72 |
| | $ | 26 |
| | $ | 252 |
| Average recorded investment in impaired loans during 2010 | | $ | 1,326 |
| | $ | 3,086 |
| | $ | — |
| | $ | 6,326 |
| | $ | 191 |
| | $ | 39 |
| | $ | 1,212 |
| | $ | 12,180 |
| Interest income recognized on impaired loans during 2010 | | $ | 85 |
| | $ | 22 |
| | $ | — |
| | $ | 336 |
| | $ | 8 |
| | $ | 5 |
| | $ | 66 |
| | $ | 522 |
|
|
Allowance for Credit Losses on Financing Receivables |
The following table discloses loans by major portfolio category and activity in the ALLL, as well as the related ALLL disaggregated by impairment evaluation method:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Allowance for Loan Losses and Recorded Investment in Loans as of and for the year ended December 31, 2012 | (dollars in thousands) | | Commercial |
| | Commercial real estate, owner-occupied |
| | Commercial real estate, investor |
| | Construction |
| | Home equity |
| | Other residential |
| | Installment and other consumer |
| | Unallocated |
| | Total |
| | | | | | | | | | | | | | | | | | | | For the year ended December 31, 2012 | | | | | | | | | | | | | | | Allowance for loan losses: | | | | | | | | | | | | | | | Beginning balance | | $ | 4,334 |
| | $ | 1,305 |
| | $ | 3,710 |
| | $ | 1,505 |
| | $ | 1,444 |
| | $ | 940 |
| | $ | 1,182 |
| | $ | 219 |
| | $ | 14,639 |
| Provision (reversal) | | 117 |
| | 184 |
| | 3,076 |
| | (643 | ) | | 190 |
| | (193 | ) | | 169 |
| | — |
| | 2,900 |
| Charge-offs | | (892 | ) | | (181 | ) | | (2,414 | ) | | (373 | ) | | (382 | ) | | (196 | ) | | (122 | ) | | — |
| | (4,560 | ) | Recoveries | | 541 |
| | 5 |
| | — |
| | 122 |
| | 12 |
| | — |
| | 2 |
| | — |
| | 682 |
| Ending balance | | $ | 4,100 |
| | $ | 1,313 |
| | $ | 4,372 |
| | $ | 611 |
| | $ | 1,264 |
| | $ | 551 |
| | $ | 1,231 |
| | $ | 219 |
| | $ | 13,661 |
| | | | | | | | | | | | | | | | | | | | Ending ALLL related to loans collectively evaluated for impairment | | $ | 2,969 |
| | $ | 1,287 |
| | $ | 3,998 |
| | $ | 493 |
| | $ | 1,110 |
| | $ | 431 |
| | $ | 800 |
| | $ | 219 |
| | $ | 11,307 |
| Ending ALLL related to loans individually evaluated for impairment | | $ | 1,090 |
| | $ | — |
| | $ | 178 |
| | $ | 118 |
| | $ | 154 |
| | $ | 120 |
| | $ | 431 |
| | $ | — |
| | $ | 2,091 |
| Ending ALLL related to purchased credit-impaired loans | | $ | 41 |
| | $ | 26 |
| | $ | 196 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 263 |
| | | | | | | | | | | | | | | | | | | | Loans outstanding: | | |
| | |
| | |
| | |
| | |
| | |
| | |
| Collectively evaluated for impairment | | $ | 166,860 |
| | $ | 193,891 |
|
| $ | 500,768 |
|
| $ | 26,497 |
|
| $ | 92,045 |
|
| $ | 46,119 |
|
| $ | 16,727 |
|
| $ | — |
| | $ | 1,042,907 |
| Individually evaluated for impairment1 | | 8,931 |
| | — |
| | 6,844 |
| | 4,168 |
| | 1,192 |
| | 3,313 |
| | 2,048 |
| | — |
| | 26,496 |
| Purchased credit-impaired | | 640 |
| | 2,515 |
| | 1,394 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 4,549 |
| Total | | $ | 176,431 |
| | $ | 196,406 |
| | $ | 509,006 |
| | $ | 30,665 |
| | $ | 93,237 |
| | $ | 49,432 |
| | $ | 18,775 |
| | $ | — |
| | $ | 1,073,952 |
| Ratio of allowance for loan losses to total loans | | 2.32 | % | | 0.67 | % | | 0.86 | % | | 1.99 | % | | 1.36 | % | | 1.11 | % | | 6.56 | % | | NM |
| | 1.27 | % | Allowance for loan losses to non-accrual loans | | 84 | % | | 94 | % | | 64 | % | | 27 | % | | 232 | % | | 46 | % | | 231 | % | | NM |
| | 77 | % |
1 Total excludes $3.8 million of PCI loans that have experienced post-acquisition declines in cash flows expected to be collected.These loans are included in the "purchased credit-impaired" amount in the next line below.
NM Not Meaningful
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Allowance for Loan Losses and Recorded Investment in Loans as of and for the year ended December 31, 2011 | (dollars in thousands) | | Commercial |
| | Commercial real estate, owner-occupied |
| | Commercial real estate, investor |
| | Construction |
| | Home equity |
| | Other residential |
| | Installment and other consumer |
| | Unallocated |
| | Total |
| As of December 31, 2011: | | | | | | | | | | | | | | | | | | | Allowance for loan losses: | | | | | | | | | | | | | | | Beginning balance | | $ | 3,114 |
| | $ | 1,037 |
| | $ | 4,134 |
| | $ | 1,694 |
| | $ | 643 |
| | $ | 738 |
| | $ | 835 |
| | $ | 197 |
| | $ | 12,392 |
| Provision (reversal) | | 4,469 |
| | 377 |
| | (424 | ) | | 275 |
| | 1,342 |
| | 202 |
| | 787 |
| | 22 |
| | 7,050 |
| Charge-offs | | (3,306 | ) | | (113 | ) | | — |
| | (473 | ) | | (554 | ) | | — |
| | (456 | ) | | — |
| | (4,902 | ) | Recoveries | | 57 |
| | 4 |
| | — |
| | 9 |
| | 13 |
| | — |
| | 16 |
| | — |
| | 99 |
| Ending balance | | $ | 4,334 |
| | $ | 1,305 |
| | $ | 3,710 |
| | $ | 1,505 |
| | $ | 1,444 |
| | $ | 940 |
| | $ | 1,182 |
| | $ | 219 |
| | $ | 14,639 |
| | | | | | | | | | | | | | | | | | | | Ending ALLL related to loans collectively evaluated for impairment | | $ | 3,049 |
| | $ | 1,136 |
| | $ | 3,547 |
| | $ | 1,311 |
| | $ | 1,182 |
| | $ | 532 |
| | $ | 717 |
| | $ | 219 |
| | $ | 11,693 |
| Ending ALLL related to loans individually evaluated for impairment | | $ | 957 |
| | $ | — |
| | $ | 91 |
| | $ | 194 |
| | $ | 262 |
| | $ | 408 |
| | $ | 465 |
| | $ | — |
| | $ | 2,377 |
| Ending ALLL related to purchased credit-impaired loans | | $ | 328 |
| | $ | 169 |
| | $ | 72 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 569 |
| | | | | | | | | | | | | | | | | | | | Loans outstanding: | | |
| | |
| | |
| | |
| | |
| | |
| | |
| Collectively evaluated for impairment | | $ | 169,564 |
| | $ | 171,492 |
| | $ | 444,060 |
| | $ | 48,653 |
| | $ | 96,998 |
| | $ | 58,095 |
| | $ | 20,661 |
| | $ | — |
| | $ | 1,009,523 |
| Individually evaluated for impairment1 | | 5,110 |
| | — |
| | 741 |
| | 3,304 |
| | 1,045 |
| | 3,407 |
| | 2,071 |
| | — |
| | 15,678 |
| Purchased credit-impaired | | 1,116 |
| | 3,213 |
| | 1,624 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 5,953 |
| Total | | $ | 175,790 |
| | $ | 174,705 |
| | $ | 446,425 |
| | $ | 51,957 |
| | $ | 98,043 |
| | $ | 61,502 |
| | $ | 22,732 |
| | $ | — |
| | $ | 1,031,154 |
| Ratio of allowance for loan losses to total loans | | 2.47 | % | | 0.75 | % | | 0.83 | % | | 2.90 | % | | 1.47 | % | | 1.53 | % | | 5.20 | % | | NM |
| | 1.42 | % | Allowance for loan losses to non-accrual loans | | 147 | % | | 64 | % | | 501 | % | | 50 | % | | 189 | % | | 48 | % | | 228 | % | | NM |
| | 122 | % |
1 Total excludes $4.5 million PCI loans that have experienced credit deterioration post-acquisition, which are included in the "purchased credit-impaired" amount in the next line below.
NM Not Meaningful
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Allowance for Loan Losses and Recorded Investment in Loans as of and for the year ended December 31, 2010 | (dollars in thousands) | | Commercial |
| | Commercial real estate, owner-occupied |
| | Commercial real estate, investor |
| | Construction |
| | Home equity |
| | Other residential |
| | Installment and other consumer |
| | Unallocated |
| | Total |
| As of December 31, 2010: | | | | | | | | | | | | | | | | | | | Allowance for loan losses: | | | | | | | | | | | | | | | Beginning balance | | $ | 2,544 |
| | $ | 1,006 |
| | $ | 3,000 |
| | $ | 1,832 |
| | $ | 586 |
| | $ | 734 |
| | $ | 662 |
| | $ | 254 |
| | $ | 10,618 |
| Provision (reversal) | | 1,118 |
| | 78 |
| | 1,134 |
| | 2,395 |
| | 207 |
| | 4 |
| | 471 |
| | (57 | ) | | 5,350 |
| Charge-offs | | (643 | ) | | (47 | ) | | — |
| | (2,628 | ) | | (150 | ) | | — |
| | (318 | ) | | — |
| | (3,786 | ) | Recoveries | | 95 |
| | — |
| | — |
| | 95 |
| | — |
| | — |
| | 20 |
| | — |
| | 210 |
| Ending balance | | $ | 3,114 |
| | $ | 1,037 |
| | $ | 4,134 |
| | $ | 1,694 |
| | $ | 643 |
| | $ | 738 |
| | $ | 835 |
| | $ | 197 |
| | $ | 12,392 |
| | | | | | | | | | | | | | | | | | | | Ending ALLL related to loans collectively evaluated for impairment | | $ | 2,447 |
| | $ | 1,037 |
| | $ | 4,134 |
| | $ | 1,691 |
| | $ | 618 |
| | $ | 645 |
| | $ | 545 |
| | $ | 197 |
| | $ | 11,314 |
| Ending ALLL related to loans individually evaluated for impairment | | $ | 667 |
| | $ | — |
| | $ | — |
| | $ | 3 |
| | $ | 25 |
| | $ | 93 |
| | $ | 290 |
| | $ | — |
| | $ | 1,078 |
| | | | | | | | | | | | | | | | | | | | Loans outstanding: | | |
| | |
| | |
| | |
| | |
| | |
| | |
| Collectively evaluated for impairment | | $ | 151,351 |
| | $ | 141,957 |
| | $ | 383,553 |
| | $ | 68,322 |
| | $ | 86,673 |
| | $ | 69,843 |
| | $ | 25,592 |
| | $ | — |
| | $ | 927,291 |
| Individually evaluated for impairment | | 2,485 |
| | 633 |
| | — |
| | 9,297 |
| | 259 |
| | 148 |
| | 1,287 |
| | — |
| | 14,109 |
| Total | | $ | 153,836 |
| | $ | 142,590 |
| | $ | 383,553 |
| | $ | 77,619 |
| | $ | 86,932 |
| | $ | 69,991 |
| | $ | 26,879 |
| | $ | — |
| | $ | 941,400 |
| Ratio of allowance for loan losses to total loans | | 2.02 | % | | 0.73 | % | | 1.08 | % | | 2.18 | % | | 0.74 | % | | 1.05 | % | | 3.11 | % | | NM |
| | 1.32 | % | Allowance for loan losses to non-accrual loans | | 125 | % | | 164 | % | | NM |
| | 18 | % | | NM |
| | 499 | % | | 231 | % | | NM |
| | 96 | % |
NM Not Meaningful
|
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Table Text Block] |
The following table reflects the outstanding balance and related carrying value of PCI loans as of the acquisition date (February 18, 2011), December 31, 2011 and 2012: | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2012 | | December 31, 2011 | | February 18, 2011 | PCI Loans (dollars in thousands) | Unpaid principal balance |
| | Carrying value |
| | Unpaid principal balance |
| | Carrying value |
| | Unpaid principal balance |
| | Carrying value |
| Commercial | $ | 2,163 |
| | $ | 640 |
| | $ | 3,168 |
| | $ | 1,116 |
| | $ | 10,860 |
| | $ | 3,706 |
| Commercial real estate | 6,370 |
| | 3,909 |
| | 9,466 |
| | 4,837 |
| | 10,139 |
| | 5,664 |
| Total purchased credit-impaired loans | $ | 8,533 |
| | $ | 4,549 |
| | $ | 12,634 |
| | $ | 5,953 |
| | $ | 20,999 |
| | $ | 9,370 |
|
The following table presents the fair value of loans pursuant to accounting standards for purchased credit-impaired loans and other purchased loans as of the acquisition date: | | | | | | | | | | | | | | February 18, 2011 | (dollars in thousands) | Purchased credit-impaired loans |
| | Other purchased loans |
| | Total |
| Contractually required payments including interest | $ | 24,316 |
| | $ | 69,702 |
| | $ | 94,018 |
| Less: nonaccretable difference | (13,044 | ) | | — |
| | (13,044 | ) | Cash flows expected to be collected (undiscounted) | 11,272 |
| | 69,702 |
| | 80,974 |
| Accretable yield | (1,902 | ) | | (17,307 | ) | 1 | (19,209 | ) | Fair value of purchased loans | $ | 9,370 |
| | $ | 52,395 |
| | $ | 61,765 |
|
1 $5.8 million of the $17.3 million represents the difference between the contractual principal amounts due and the fair value. This discount is to be accreted to interest income over the remaining lives of the loans. The remaining $11.5 million is the contractual interest to be earned over the life of the loans. |
Accretable Yield Activity |
The activities in the accretable yield, or income expected to be earned, for PCI loans were as follows: | | | | | | | | | | Accretable Yield | | Years ended | (dollars in thousands) | | December 31, 2012 |
| | December 31, 2011 |
| Balance at beginning of period | | $ | 5,405 |
| | $ | — |
| Additions | | — |
| | 1,902 |
| Removals 1 | | (1,221 | ) | | (1,019 | ) | Accretion | | (1,641 | ) | | (1,418 | ) | Reclassifications (to)/from nonaccretable difference 2 | | 1,417 |
| | 5,940 |
| Balance at end of period | | $ | 3,960 |
| | $ | 5,405 |
|
1 Represents the accretable difference that is relieved when a loan exits the PCI population due to payoff, full charge-off, or transfer to repossessed assets, etc.
2 Primarily relates to improvements in expected credit performance and changes in expected timing of cash flows. |
Schedule of Related Party Transactions |
An analysis of net loans to related parties for each of the three years ended December 31, 2012, 2011 and 2010 is as follows:
| | | | | | | | | | | | | (in thousands) | 2012 |
| | 2011 |
| | 2010 |
| Balance at beginning of year | $ | 6,866 |
| | $ | 6,997 |
| | $ | 7,401 |
| Additions | 826 |
| | 1,690 |
| | 95 |
| Advances | 3 |
| | 43 |
| | — |
| Repayments | (2,730 | ) | | (1,864 | ) | | (499 | ) | Reclassified as unrelated-party loan | (1,540 | ) | | — |
| | — |
| Balance at end of year | $ | 3,425 |
| | $ | 6,866 |
| | $ | 6,997 |
|
|