Loans and the Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2012

Loans and the Allowance for Credit Losses [Abstract]

Schedule of Recorded Investment in Loans by Category

(unaudited, in thousands)	June 30, 2012		December 31, 2011
Commercial real estate:
Land and construction	$	158,413	$	175,867
Improved property		1,536,632		1,509,698
Total commercial real estate		1,695,045		1,685,565
Commercial and industrial		420,689		426,315
Residential real estate		662,556		621,383
Home equity		250,988		251,785
Consumer		246,552		254,320
Total portfolio loans		3,275,830		3,239,368
Loans held for sale		7,305		6,084
Total loans	$	3,283,135	$	3,245,452

Summary of Changes in the Allowance for Credit Losses

	Allowance for Credit Losses By Category For the Six Months Ended June 30, 2012 and 2011
(unaudited, in thousands)	Commercial Real Estate - Land and Construction			Commercial Real Estate - Improved Property			Commercial & Industrial			Residential Real Estate			Home Equity			Consumer			Deposit Overdraft			Total
Balance at December 31, 2011:
Allowance for loan losses	$	4,842		$	24,748		$	11,414		$	5,638		$	1,962		$	5,410		$	796		$	54,810
Allowance for loan commitments		74			21			323			4			33			13			—			468
Total beginning allowance for credit losses		4,916			24,769			11,737			5,642			1,995			5,423			796			55,278
Provision for credit losses:
Provision for loan losses		2,969			3,600			740			2,237			1,125			1,413			138			12,222
Provision for loan commitments		(25	)		(11	)		(99	)		1			15			2			—			(117	)
Total provision for credit losses		2,944			3,589			641			2,238			1,140			1,415			138			12,105
Charge-offs		(3,377	)		(4,214	)		(2,342	)		(2,288	)		(655	)		(2,017	)		(389	)		(15,282	)
Recoveries		41			587			256			193			9			613			161			1,860
Net charge-offs		(3,336	)		(3,627	)		(2,086	)		(2,095	)		(646	)		(1,404	)		(228	)		(13,422	)
Balance at June 30, 2012:
Allowance for loan losses		4,475			24,721			10,068			5,780			2,441			5,419			706			53,610
Allowance for loan commitments		49			10			224			5			48			15			—			351
Total ending allowance for credit losses	$	4,524		$	24,731		$	10,292		$	5,785		$	2,489		$	5,434		$	706		$	53,961
Balance at December 31, 2010:
Allowance for loan losses	$	4,701		$	30,836		$	10,793		$	5,950		$	2,073		$	5,641		$	1,057		$	61,051
Allowance for loan commitments		1,037			285			65			1			14			2			—			1,404
Total beginning allowance for credit losses		5,738			31,121			10,858			5,951			2,087			5,643			1,057			62,455
Provision for credit losses:
Provision for loan losses		4,893			3,196			4,138			1,386			421			930			578			15,542
Provision for loan commitments		(696	)		(275	)		235			1			24			12			—			(699	)
Total provision for credit losses		4,197			2,921			4,373			1,387			445			942			578			14,843
Charge-offs		(4,532	)		(4,156	)		(3,937	)		(1,992	)		(448	)		(1,840	)		(420	)		(17,325	)
Recoveries		33			725			330			248			9			635			170			2,150
Net charge-offs		(4,499	)		(3,431	)		(3,607	)		(1,744	)		(439	)		(1,205	)		(250	)		(15,175	)
Balance at June 30, 2011:
Allowance for loan losses		5,095			30,601			11,324			5,592			2,055			5,366			1,385			61,418
Allowance for loan commitments		341			10			300			2			38			14			—			705
Total ending allowance for credit losses	$	5,436		$	30,611		$	11,624		$	5,594		$	2,093		$	5,380		$	1,385		$	62,123

Allowance for Credit Losses and Recorded Investments in Loans

	Allowance for Credit Losses and Recorded Investment in Loans
(unaudited, in thousands)	Commercial Real Estate- Land and Construction		Commercial Real Estate- Improved Property		Commercial and Industrial		Residential Real Estate		Home Equity		Consumer		Over- draft		Total
June 30, 2012
Allowance for credit losses:
Allowance for loans individually evaluated for impairment	$	1,675	$	1,907	$	—	$	—	$	—	$	—	$	—	$	3,582
Allowance for loans collectively evaluated for impairment		2,800		22,814		10,068		5,780		2,441		5,419		706		50,028
Allowance for loan commitments		49		10		224		5		48		15		—		351
Total allowance for credit losses	$	4,524	$	24,731	$	10,292	$	5,785	$	2,489	$	5,434	$	706	$	53,961
Portfolio loans:
Individually evaluated for impairment (1)	$	4,933	$	16,676	$	—	$	—	$	—	$	—	$	—	$	21,609
Collectively evaluated for impairment		153,480		1,519,956		420,689		662,556		250,988		246,552		—		3,254,221
Total portfolio loans	$	158,413	$	1,536,632	$	420,689	$	662,556	$	250,988	$	246,552	$	—	$	3,275,830
December 31, 2011
Allowance for credit losses:
Allowance for loans individually evaluated for impairment	$	1,788	$	1,565	$	—	$	—	$	—	$	—	$	—	$	3,353
Allowance for loans collectively evaluated for impairment		3,054		23,183		11,414		5,638		1,962		5,410		796		51,457
Allowance for loan commitments		74		21		323		4		33		13		—		468
Total allowance for credit losses	$	4,916	$	24,769	$	11,737	$	5,642	$	1,995	$	5,423	$	796	$	55,278
Portfolio loans:
Individually evaluated for impairment (1)	$	10,815	$	18,028	$	—	$	—	$	—	$	—	$	—	$	28,843
Collectively evaluated for impairment		165,052		1,491,670		426,315		621,383		251,785		254,320		—		3,210,525
Total portfolio loans	$	175,867	$	1,509,698	$	426,315	$	621,383	$	251,785	$	254,320	$	—	$	3,239,368

(1) Commercial loans greater than $1 million that are reported as non-accrual or as a troubled debt restructuring (“TDR”) are individually evaluated for impairment.

Summary of Commercial Loans by Risk Grade

	Commercial Loans by Internally Assigned Risk Grade
(unaudited, in thousands)	Commercial Real Estate- Land and Construction		Commercial Real Estate- Improved Property		Commercial & Industrial		Total Commercial Loans
As of June 30, 2012
Excellent – minimal risk	$	443	$	382	$	52,847	$	53,672
Good – desirable risk		23,600		631,539		166,524		821,663
Fair – acceptable risk		105,245		740,431		171,433		1,017,109
Criticized – marginal		16,530		89,427		16,897		122,854
Classified – substandard		12,595		74,853		12,988		100,436
Classified – doubtful		—		—		—		—
Total	$	158,413	$	1,536,632	$	420,689	$	2,115,734
As of December 31, 2011
Excellent – minimal risk	$	625	$	448	$	51,923	$	52,996
Good – desirable risk		40,278		593,563		185,745		819,586
Fair – acceptable risk		97,077		727,594		156,459		981,130
Criticized – marginal		19,701		107,433		14,061		141,195
Classified – substandard		18,186		80,660		18,127		116,973
Classified – doubtful		—		—		—		—
Total	$	175,867	$	1,509,698	$	426,315	$	2,111,880

Summary of Age Analysis of Loan Categories

	Age Analysis of Loans
(unaudited, in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Total Loans		90 Days or More Past Due and Accruing (1)
As of June 30, 2012
Commercial real estate:
Land and construction	$	152,694	$	15	$	353	$	5,351	$	5,719	$	158,413	$	416
Improved property		1,520,114		2,462		1,734		12,322		16,518		1,536,632		98
Total commercial real estate		1,672,808		2,477		2,087		17,673		22,237		1,695,045		514
Commercial and industrial		415,707		630		884		3,468		4,982		420,689		177
Residential real estate		646,326		4,749		1,656		9,825		16,230		662,556		1,752
Home equity		247,634		1,430		304		1,620		3,354		250,988		902
Consumer		242,002		3,410		702		438		4,550		246,552		294
Total portfolio loans		3,224,477		12,696		5,633		33,024		51,353		3,275,830		3,639
Loans held for sale		7,305		—		—		—		—		7,305		—
Total loans	$	3,231,782	$	12,696	$	5,633	$	33,024	$	51,353	$	3,283,135	$	3,639
Non-performing loans included above are as follows:
Non-accrual loans	$	8,698	$	837	$	1,169	$	29,248	$	31,254	$	39,952
TDRs accruing interest (1)		26,822		884		322		137		1,343		28,165
As of December 31, 2011
Commercial real estate:
Land and construction	$	166,322	$	1,391	$	127	$	8,027	$	9,545	$	175,867	$	—
Improved property		1,486,001		4,485		3,446		15,766		23,697		1,509,698		18
Total commercial real estate		1,652,323		5,876		3,573		23,793		33,242		1,685,565		18
Commercial and industrial		417,341		1,624		333		7,017		8,974		426,315		939
Residential real estate		601,541		5,742		1,186		12,914		19,842		621,383		2,881
Home equity		247,771		1,843		447		1,724		4,014		251,785		498
Consumer		247,736		4,469		1,030		1,085		6,584		254,320		799
Total portfolio loans		3,166,712		19,554		6,569		46,533		72,656		3,239,368		5,135
Loans held for sale		6,084		—		—		—		—		6,084		—
Total loans	$	3,172,796	$	19,554	$	6,569	$	46,533	$	72,656	$	3,245,452	$	5,135
Non-performing loans included above are as follows:
Non-accrual loans	$	12,377	$	1,629	$	2,818	$	40,668	$	45,115	$	57,492
TDRs accruing interest (1)		26,893		1,434		354		730		2,518		29,411

(1) Loans 90 days or more past due and accruing interest exclude TDRs.

Summary of Impaired Loans

	Impaired Loans
	June 30, 2012						December 31, 2011
(unaudited, in thousands)	Unpaid Principal Balance (1)		Recorded Investment		Related Allowance		Unpaid Principal Balance (1)		Recorded Investment		Related Allowance
With no related allowance recorded:
Commercial real estate:
Land and construction	$	10,993	$	9,266	$	—	$	19,733	$	14,731	$	—
Improved property		31,544		27,915		—		38,629		34,352		—
Commercial and industrial		7,940		6,143		—		11,536		9,078		—
Residential real estate		15,128		13,807		—		18,038		16,221		—
Home equity		1,012		908		—		1,465		1,331		—
Consumer		199		175		—		344		289		—
Total impaired loans without a related allowance		66,816		58,214		—		89,745		76,002		—
With an allowance recorded:
Commercial real estate:
Land and construction		8,574		2,795		1,675		2,813		2,813		1,788
Improved property		7,108		7,108		1,907		8,388		8,088		1,565
Total impaired loans with an allowance		15,682		9,903		3,582		11,201		10,901		3,353
Total impaired loans	$	82,498	$	68,117	$	3,582	$	100,946	$	86,903	$	3,353

(1) The difference between the unpaid principal balance and the recorded investment generally reflects amounts that have been previously charged-off.

	Impaired Loans
	For the Three Months Ended								For the Six Months Ended
	June 30, 2012				June 30, 2011				June 30, 2012				June 30, 2011
(unaudited, in thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate:
Land and construction	$	9,249	$	80	$	12,307	$	39	$	11,076	$	172	$	10,553	$	117
Improved Property		30,151		162		34,308		179		31,551		282		33,396		328
Commercial and industrial		6,860		41		8,942		88		7,599		59		8,630		97
Residential real estate		14,946		60		14,211		29		15,371		134		14,184		69
Home equity		988		—		1,134		—		1,102		2		1,007		—
Consumer		217		1		209		2		241		1		240		2
Total impaired loans without a related allowance		62,411		344		71,111		337		66,940		650		68,010		613
With an allowance recorded:
Commercial real estate:
Land and construction		4,188		—		2,993		70		3,730		—		4,698		82
Improved Property		7,948		71		21,402		245		7,995		180		23,375		453
Commercial and industrial		—		—		1,840		—		—		—		1,227		—
Total impaired loans with an allowance		12,136		71		26,235		315		11,725		180		29,300		535
Total impaired loans	$	74,547	$	415	$	97,346	$	652	$	78,665	$	830	$	97,310	$	1,148

Recorded Investment in Non-Accrual Loans and TDRs

	Non-accrual Loans (1)
(unaudited, in thousands)	June 30, 2012		December 31, 2011
Commercial real estate:
Land and construction	$	5,158	$	10,135
Improved Property		18,643		25,122
Total commercial real estate		23,801		35,257
Commercial and industrial		5,302		8,238
Residential real estate		9,766		12,377
Home equity		908		1,331
Consumer		175		289
Total	$	39,952	$	57,492

(1) Total non-accrual loans include loans that are also restructured. Such loans are also set forth in the following table as non-accrual TDRs.

	TDRs
	June 30, 2012						December 31, 2011
(unaudited, in thousands)	Accruing		Non-Accrual		Total		Accruing		Non-accrual		Total
Commercial real estate:
Land and construction	$	6,903	$	2,689	$	9,592	$	7,410	$	5,662	$	13,072
Improved Property		16,380		6,871		23,251		17,318		8,398		25,716
Total commercial real estate		23,283		9,560		32,843		24,728		14,060		38,788
Commercial and industrial		841		573		1,414		839		2,514		3,353
Residential real estate		4,041		1,026		5,067		3,844		713		4,557
Home equity		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total	$	28,165	$	11,159	$	39,324	$	29,411	$	17,287	$	46,698

Loans Identified as TDRs

	New TDRs (1)
	For the Three Months Ended June 30, 2012						For the Six Months Ended June 30, 2012
(unaudited, dollars in thousands)	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial real estate:
Land and construction		2	$	756	$	756		2	$	756	$	756
Improved Property		2		364		363		8		1,268		1,266
Total commercial real estate		4		1,120		1,119		10		2,024		2,022
Commercial and industrial		2		39		38		2		40		38
Residential real estate		2		166		176		6		560		578
Home equity		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total		8	$	1,325	$	1,333		18	$	2,624	$	2,638

(1) Excludes loans that were either paid off or charged-off by period end. The pre-modification balance represents the balance outstanding at the beginning of the period. The post-modification balance represents the outstanding balance at period end.

TDRs Defaulted Later Restructured

	Defaulted TDRs (1)
	For the Three Months Ended June 30, 2012				For the Six Months  Ended June 30, 2012
(unaudited, dollars in thousands)	Number of Defaults		Recorded Investment		Number of Defaults		Recorded Investment
Commercial real estate:
Land and construction		—	$	—		—	$	—
Improved property		3		362		9		2,085
Total commercial real estate		3		362		9		2,085
Commercial and industrial		1		166		1		166
Residential real estate		—		—		—		—
Home equity		—		—		—		—
Consumer		—		—		—		—
Total		4	$	528		10	$	2,251

(1) Excludes loans that were either charged-off or cured by period end. The recorded investment is as of June 30, 2012.

Summary of Other Real Estate Owned and Repossessed Assets

(unaudited, in thousands)	June 30, 2012		December 31, 2011
Other real estate owned	$	3,686	$	2,786
Repossessed assets		232		243
Total other real estate owned and repossessed assets	$	3,918	$	3,029