Loans (Tables)

12 Months Ended

Dec. 31, 2012

A summary of loans follows:



	December 31,
	2012		2011
	(In thousands)
Commercial loan portfolio:
Commercial	$	1,002,722	$	895,150
Commercial real estate	1,161,861		1,071,999
Real estate construction	62,689		73,355
Land development	37,548		44,821
Subtotal	2,264,820		2,085,325
Consumer loan portfolio:
Residential mortgage	883,835		861,716
Consumer installment	546,036		484,058
Home equity	473,044		400,186
Subtotal	1,902,915		1,745,960
Total loans	$	4,167,735	$	3,831,285

Recorded investment of loans in the commercial loan portfolio by risk rating categories

The following schedule presents the recorded investment of loans in the commercial loan portfolio by risk rating categories at December 31, 2012 and 2011:



	Commercial		Commercial Real Estate		Real Estate Construction		Land Development		Total
	(In thousands)
December 31, 2012
Originated Portfolio:
Risk Grades 1-5	$	827,112	$	846,901	$	47,847	$	15,010	$	1,736,870
Risk Grade 6	38,066		45,261		59		497		83,883
Risk Grade 7	16,831		26,343		—		6,367		49,541
Risk Grade 8	12,540		33,345		1,217		4,184		51,286
Risk Grade 9	2,061		4,315		—		—		6,376
Subtotal	896,610		956,165		49,123		26,058		1,927,956
Acquired Portfolio:
Risk Grades 1-5	93,281		188,499		13,566		8,419		303,765
Risk Grade 6	8,225		5,900		—		237		14,362
Risk Grade 7	2,169		9,677		—		—		11,846
Risk Grade 8	2,437		1,620		—		2,834		6,891
Risk Grade 9	—		—		—		—		—
Subtotal	106,112		205,696		13,566		11,490		336,864
Total	$	1,002,722	$	1,161,861	$	62,689	$	37,548	$	2,264,820
December 31, 2011
Originated Portfolio:
Risk Grades 1-5	$	706,040	$	692,193	$	54,029	$	14,791	$	1,467,053
Risk Grade 6	20,531		29,788		287		6,874		57,480
Risk Grade 7	26,238		48,648		—		2,400		77,286
Risk Grade 8	9,828		40,130		—		4,593		54,551
Risk Grade 9	898		4,308		—		1,597		6,803
Subtotal	763,535		815,067		54,316		30,255		1,663,173
Acquired Portfolio:
Risk Grades 1-5	111,846		231,669		18,883		8,358		370,756
Risk Grade 6	9,990		14,346		—		1,277		25,613
Risk Grade 7	3,101		8,556		—		596		12,253
Risk Grade 8	6,678		2,361		156		4,335		13,530
Risk Grade 9	—		—		—		—		—
Subtotal	131,615		256,932		19,039		14,566		422,152
Total	$	895,150	$	1,071,999	$	73,355	$	44,821	$	2,085,325

Recorded investment of loans in the consumer loan portfolio based on the credit risk profile of loans in a performing and nonperforming status

The following schedule presents the recorded investment of loans in the consumer loan portfolio based on loans in a performing status and loans in a nonperforming status at December 31, 2012 and 2011:



	Residential Mortgage		Consumer Installment		Home Equity		Total
	(In thousands)
December 31, 2012
Originated Loans:
Performing	$	854,882	$	543,339	$	429,734	$	1,827,955
Nonperforming	14,988		739		3,502		19,229
Subtotal	869,870		544,078		433,236		1,847,184
Acquired Loans:
Performing	13,843		1,958		39,637		55,438
Nonperforming	122		—		171		293
Subtotal	13,965		1,958		39,808		55,731
Total	$	883,835	$	546,036	$	473,044	$	1,902,915
December 31, 2011
Originated Loans:
Performing	$	818,044	$	479,237	$	349,850	$	1,647,131
Nonperforming	22,708		1,707		3,783		28,198
Subtotal	840,752		480,944		353,633		1,675,329
Acquired Loans:
Performing	19,387		3,114		46,091		68,592
Nonperforming	1,577		—		462		2,039
Subtotal	20,964		3,114		46,553		70,631
Total	$	861,716	$	484,058	$	400,186	$	1,745,960

Summary of nonperforming loans

A summary of nonperforming loans follows:



	December 31,
	2012		2011
	(In thousands)
Nonaccrual loans:
Commercial	$	14,601	$	10,726
Commercial real estate	37,660		44,438
Real estate construction and land development	5,401		6,190
Residential mortgage	10,164		12,573
Consumer installment and home equity	3,472		4,467
Total nonaccrual loans	71,298		78,394
Accruing loans contractually past due 90 days or more as to interest or principal payments:
Commercial	—		1,381
Commercial real estate	87		374
Real estate construction and land development	—		287
Residential mortgage	1,503		752
Consumer installment and home equity	769		1,023
Total accruing loans contractually past due 90 days or more as to interest or principal payments	2,359		3,817
Nonperforming TDRs:
Commercial loan portfolio	13,876		14,675
Consumer loan portfolio	3,321		9,383
Total nonperforming TDRs	17,197		24,058
Total nonperforming loans	$	90,854	$	106,269

Schedule of Impaired loans by classes

The following schedule presents impaired loans by classes of loans at December 31, 2012:



	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance		Average Annual Recorded Investment		Interest Income Recognized While on Impaired Status
	(In thousands)
Impaired loans with a valuation allowance:
Commercial	$	6,368	$	6,818	$	1,966	$	6,108	$	—
Commercial real estate	17,267		17,607		5,359		19,788		—
Real estate construction	171		171		75		130		—
Land development	254		254		50		1,278		—
Residential mortgage	18,901		18,901		658		21,307		1,353
Subtotal	42,961		43,751		8,108		48,611		1,353
Impaired loans with no related valuation allowance:
Commercial	23,230		27,959		—		21,651		964
Commercial real estate	37,223		48,531		—		38,342		1,020
Real estate construction	1,046		1,116		—		543		—
Land development	10,867		15,112		—		7,811		387
Residential mortgage	10,164		10,164		—		12,057		—
Consumer installment	739		739		—		1,093		—
Home equity	2,733		2,733		—		2,922		—
Subtotal	86,002		106,354		—		84,419		2,371
Total impaired loans:
Commercial	29,598		34,777		1,966		27,759		964
Commercial real estate	54,490		66,138		5,359		58,130		1,020
Real estate construction	1,217		1,287		75		673		—
Land development	11,121		15,366		50		9,089		387
Residential mortgage	29,065		29,065		658		33,364		1,353
Consumer installment	739		739		—		1,093		—
Home equity	2,733		2,733		—		2,922		—
Total	$	128,963	$	150,105	$	8,108	$	133,030	$	3,724

The following schedule presents impaired loans by classes of loans at December 31, 2011:



	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance		Average Annual Recorded Investment		Interest Income Recognized While on Impaired Status
	(In thousands)
Impaired loans with a valuation allowance:
Commercial	$	6,362	$	7,650	$	1,480	$	6,997	$	—
Commercial real estate	20,050		21,370		6,775		27,762		—
Land development	902		934		327		1,928		—
Residential mortgage	25,012		25,012		704		22,525		1,433
Subtotal	52,326		54,966		9,286		59,212		1,433
Impaired loans with no related valuation allowance:
Commercial	19,559		29,349		—		22,900		1,000
Commercial real estate	40,953		54,249		—		41,663		767
Real estate construction	156		934		—		181		12
Land development	10,187		15,788		—		11,507		352
Residential mortgage	12,573		12,573		—		16,054		—
Consumer installment	1,707		1,707		—		2,665		—
Home equity	2,760		2,760		—		3,126		—
Subtotal	87,895		117,360		—		98,096		2,131
Total impaired loans:
Commercial	25,921		36,999		1,480		29,897		1,000
Commercial real estate	61,003		75,619		6,775		69,425		767
Real estate construction	156		934		—		181		12
Land development	11,089		16,722		327		13,435		352
Residential mortgage	37,585		37,585		704		38,579		1,433
Consumer installment	1,707		1,707		—		2,665		—
Home equity	2,760		2,760		—		3,126		—
Total	$	140,221	$	172,326	$	9,286	$	157,308	$	3,564

Schedule representing the aging status of the recorded investment in loans by classes

The following schedule presents the aging status of the recorded investment in loans by portfolio segment/class at December 31, 2012 and 2011.



	31-60 Days Past Due		61-89 Days Past Due		Accruing Loans Past Due 90 Days or More		Non-accrual Loans		Total Past Due		Current		Total Loans
	(In thousands)
December 31, 2012
Originated Portfolio:
Commercial	$	3,999	$	730	$	—	$	14,601	$	19,330	$	877,280	$	896,610
Commercial real estate	5,852		2,089		87		37,660		45,688		910,477		956,165
Real estate construction	—		—		—		1,217		1,217		47,906		49,123
Land development	—		—		—		4,184		4,184		21,874		26,058
Residential mortgage	3,161		55		1,503		10,164		14,883		854,987		869,870
Consumer installment	2,415		378		—		739		3,532		540,546		544,078
Home equity	1,618		427		769		2,733		5,547		427,689		433,236
Total	$	17,045	$	3,679	$	2,359	$	71,298	$	94,381	$	3,680,759	$	3,775,140
Acquired Portfolio:
Commercial	$	—	$	—	$	2,834	$	—	$	2,834	$	103,278	$	106,112
Commercial real estate	287		15		3,139		—		3,441		202,255		205,696
Real estate construction	—		—		—		—		—		13,566		13,566
Land development	—		—		2,834		—		2,834		8,656		11,490
Residential mortgage	123		—		122		—		245		13,720		13,965
Consumer installment	10		—		—		—		10		1,948		1,958
Home equity	205		—		170		—		375		39,433		39,808
Total	$	625	$	15	$	9,099	$	—	$	9,739	$	382,856	$	392,595
December 31, 2011
Originated Portfolio:
Commercial	$	5,207	$	6,268	$	1,381	$	10,726	$	23,582	$	739,953	$	763,535
Commercial real estate	9,967		3,241		374		44,438		58,020		757,047		815,067
Real estate construction	—		—		287		—		287		54,029		54,316
Land development	—		—		—		6,190		6,190		24,065		30,255
Residential mortgage	5,591		76		752		12,573		18,992		821,760		840,752
Consumer installment	3,449		1,174		—		1,707		6,330		474,614		480,944
Home equity	2,038		408		1,023		2,760		6,229		347,404		353,633
Total	$	26,252	$	11,167	$	3,817	$	78,394	$	119,630	$	3,218,872	$	3,338,502
Acquired Portfolio:
Commercial	$	394	$	—	$	7,808	$	—	$	8,202	$	123,413	$	131,615
Commercial real estate	1,820		—		2,592		—		4,412		252,520		256,932
Real estate construction	—		—		156		—		156		18,883		19,039
Land development	—		—		4,780		—		4,780		9,786		14,566
Residential mortgage	288		—		1,577		—		1,865		19,099		20,964
Consumer installment	49		11		—		—		60		3,054		3,114
Home equity	641		262		462		—		1,365		45,188		46,553
Total	$	3,192	$	273	$	17,375	$	—	$	20,840	$	471,943	$	492,783

Loan

Schedule of Corporation's TDRs

The following schedule presents the Corporation's TDRs at December 31, 2012 and 2011:



	Performing		Nonperforming		Total
	(In thousands)
December 31, 2012
Commercial loan portfolio	$	15,789	$	13,876	$	29,665
Consumer loan portfolio	15,580		3,321		18,901
Total	$	31,369	$	17,197	$	48,566
December 31, 2011
Commercial loan portfolio	$	4,765	$	14,675	$	19,440
Consumer loan portfolio	15,629		9,383		25,012
Total	$	20,394	$	24,058	$	44,452

Schedule providing information on performing and nonperforming TDRs

The following schedule provides information on loans reported as performing and nonperforming TDRs that were modified during the twelve months ended December 31, 2012 and 2011:



	Number of Loans	Pre- Modification Recorded Investment		Post- Modification Recorded Investment
	(Dollars in thousands)
Twelve months ended December 31, 2012
Commercial loan portfolio:
Commercial	52	$	7,506	$	7,506
Commercial real estate	29	7,651		7,651
Land development	4	3,991		3,991
Subtotal — commercial loan portfolio	85	19,148		19,148
Consumer loan portfolio (residential mortgage)	89	8,252		7,992
Total	174	$	27,400	$	27,140
Twelve months ended December 31, 2011
Commercial loan portfolio:
Commercial	19	$	4,708	$	4,708
Commercial real estate	25	6,267		6,267
Land development	—	—		—
Subtotal — commercial loan portfolio	44	10,975		10,975
Consumer loan portfolio (residential mortgage)	126	10,545		10,127
Total	170	$	21,520	$	21,102

Troubled debt restructurings on financing receivables with defaults payment

The following schedule includes performing and nonperforming TDRs at December 31, 2012 and 2011, and TDRs that were transferred to nonaccrual status during 2012 and 2011, for which there was a payment default during the twelve months ended December 31, 2012 and 2011, whereby the borrower was past due with respect to principal and/or interest for 90 days or more, and the loan became a TDR during the twelve-month period prior to the default:



	Years Ended December 31,
	2012			2011
	Number of Loans	Principal Balance at Year End		Number of Loans	Principal Balance at Year End
	Number of Loans	Principal Balance at Year End		Number of Loans	Principal Balance at Year End
	(Dollars in thousands)
Commercial loan portfolio:
Commercial	3	$	1,300	7	$	2,659
Commercial real estate	5	3,293		9	1,828
Subtotal — commercial loan portfolio	8	4,593		16	4,487
Consumer loan portfolio (residential mortgage)	6	1,166		18	1,740
Total	14	$	5,759	34	$	6,227

Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment

The following schedule presents, by loan portfolio segment, the changes in the allowance for the year ended December 31, 2012 and details regarding the balance in the allowance and the recorded investment in loans at December 31, 2012 by impairment evaluation method.



	Commercial Loan Portfolio			Consumer Loan Portfolio			Unallocated		Total
	(In thousands)
Changes in allowance for loan losses for the year ended December 31, 2012:
Beginning balance	$	55,645		$	29,166		$	3,522	$	88,333
Provision for loan losses	7,061			9,778			1,661		18,500
Charge-offs	(15,723		)	(11,713		)	—		(27,436		)
Recoveries	2,992			2,102			—		5,094
Ending balance	$	49,975		$	29,333		$	5,183	$	84,491
Allowance for loan losses balance at December 31, 2012 attributable to:
Loans individually evaluated for impairment	$	7,450		$	658		$	—	$	8,108
Loans collectively evaluated for impairment	42,525			28,175			5,183		75,883
Loans acquired with deteriorated credit quality	—			500			—		500
Total	$	49,975		$	29,333		$	5,183	$	84,491
Recorded investment (loan balance) at December 31, 2012:
Loans individually evaluated for impairment	$	87,327		$	18,901		$	—	$	106,228
Loans collectively evaluated for impairment	1,840,629			1,828,283			—		3,668,912
Loans acquired with deteriorated credit quality	336,864			55,731			—		392,595
Total	$	2,264,820		$	1,902,915		$	—	$	4,167,735

The following presents, by loan portfolio segment, the changes in the allowance for the year ended December 31, 2011 and details regarding the balance in the allowance and the recorded investment in loans at December 31, 2011 by impairment evaluation method.



	Commercial Loan Portfolio			Consumer Loan Portfolio			Unallocated		Total
	(In thousands)
Changes in allowance for loan losses for the year ended December 31, 2011:
Beginning balance	$	59,443		$	27,338		$	2,749	$	89,530
Provision for loan losses	14,196			11,031			773		26,000
Charge-offs	(20,571		)	(11,537		)	—		(32,108		)
Recoveries	2,577			2,334			—		4,911
Ending balance	$	55,645		$	29,166		$	3,522	$	88,333
Allowance for loan losses balance at December 31, 2011 attributable to:
Loans individually evaluated for impairment	$	8,582		$	704		$	—	$	9,286
Loans collectively evaluated for impairment	45,863			28,062			3,522		77,447
Loans acquired with deteriorated credit quality	1,200			400			—		1,600
Total	$	55,645		$	29,166		$	3,522	$	88,333
Recorded investment (loan balance) at December 31, 2011:
Loans individually evaluated for impairment	$	80,794		$	25,012		$	—	$	105,806
Loans collectively evaluated for impairment	1,582,379			1,650,317			—		3,232,696
Loans acquired with deteriorated credit quality	422,152			70,631			—		492,783
Total	$	2,085,325		$	1,745,960		$	—	$	3,831,285