Note 5 – Allowance for Loan and Lease Losses

The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method for the three and six months ended June 30, 2013 and 2012 and the twelve months ended December 31, 2012:

	Three Months Ended June 30, 2013
(in thousands)	Commercial Construction		Commercial Secured by Real Estate		Equipment Lease Financing			Commercial Other		Real Estate Construction		Real Estate Mortgage		Home Equity		Consumer Direct		Consumer Indirect		Total
Allowance for loan losses
Beginning balance	$	3,827	$	13,682	$	128		$	5,151	$	372	$	4,980	$	571	$	1,098	$	3,584	$	33,393
Provision charged to expense		1,119		1,132		(11	)		541		34		112		127		174		433		3,661
Losses charged off		1,112		653		0			972		38		151		126		277		786		4,115
Recoveries		1		1		0			73		0		9		4		139		435		662
Ending balance	$	3,835	$	14,162	$	117		$	4,793	$	368	$	4,950	$	576	$	1,134	$	3,666	$	33,601

Ending balance:
Individually evaluated for impairment	$	1,890	$	1,866	$	0		$	83	$	0	$	0	$	0	$	0	$	0	$	3,839
Collectively evaluated for impairment	$	1,945	$	12,296	$	117		$	4,710	$	368	$	4,950	$	576	$	1,134	$	3,666	$	29,762

Loans
Ending balance:
Individually evaluated for impairment	$	10,576	$	35,426	$	0		$	16,389	$	0	$	1,027	$	0	$	0	$	0	$	63,418
Collectively evaluated for impairment	$	93,224	$	823,596	$	9,383		$	360,517	$	51,462	$	691,907	$	80,631	$	123,565	$	287,098	$	2,521,383

	Six Months Ended June 30, 2013
(in thousands)	Commercial Construction		Commercial Secured by Real Estate		Equipment Lease Financing			Commercial Other		Real Estate Construction		Real Estate Mortgage		Home Equity		Consumer Direct		Consumer Indirect		Total
Allowance for loan losses
Beginning balance	$	4,033	$	13,541	$	126		$	5,469	$	376	$	4,767	$	563	$	1,102	$	3,268	$	33,245
Provision charged to expense		907		1,616		(9	)		386		30		446		177		339		1,328		5,220
Losses charged off		1,112		1,018		0			1,304		38		282		173		591		1,785		6,303
Recoveries		7		23		0			242		0		19		9		284		855		1,439
Ending balance	$	3,835	$	14,162	$	117		$	4,793	$	368	$	4,950	$	576	$	1,134	$	3,666	$	33,601

Ending balance:
Individually evaluated for impairment	$	1,890	$	1,866	$	0		$	83	$	0	$	0	$	0	$	0	$	0	$	3,839
Collectively evaluated for impairment	$	1,945	$	12,296	$	117		$	4,710	$	368	$	4,950	$	576	$	1,134	$	3,666	$	29,762

Loans
Ending balance:
Individually evaluated for impairment	$	10,576	$	35,426	$	0		$	16,389	$	0	$	1,027	$	0	$	0	$	0	$	63,418
Collectively evaluated for impairment	$	93,224	$	823,596	$	9,383		$	360,517	$	51,462	$	691,907	$	80,631	$	123,565	$	287,098	$	2,521,383

	Twelve Months Ended December 31, 2012
(in thousands)	Commercial Construction		Commercial Secured by Real Estate		Equipment Lease Financing		Commercial Other		Real Estate Construction		Real Estate Mortgage		Home Equity		Consumer Direct		Consumer Indirect			Total
Allowance for loan losses
Balance, beginning of year	$	4,023	$	11,753	$	112	$	5,608	$	354	$	4,302	$	562	$	917	$	5,540		$	33,171
Provision charged to expense		1,009		3,520		14		2,330		183		1,437		238		892		(173	)		9,450
Losses charged off		1,034		2,035		0		3,233		189		1,123		248		1,245		3,483			12,590
Recoveries		35		303		0		764		28		151		11		538		1,384			3,214
Balance, end of year	$	4,033	$	13,541	$	126	$	5,469	$	376	$	4,767	$	563	$	1,102	$	3,268		$	33,245

Ending balance:
Individually evaluated for impairment	$	1,820	$	1,090	$	0	$	338	$	0	$	0	$	0	$	0	$	0		$	3,248
Collectively evaluated for impairment	$	2,213	$	12,451	$	126	$	5,131	$	376	$	4,767	$	563	$	1,102	$	3,268		$	29,997

Loans
Ending balance:
Individually evaluated for impairment	$	9,395	$	38,113	$	0	$	14,295	$	0	$	695	$	0	$	0	$	0		$	62,498
Collectively evaluated for impairment	$	110,052	$	769,100	$	9,246	$	362,053	$	55,041	$	696,233	$	82,292	$	122,581	$	281,477		$	2,488,075

	Three Months Ended June 30, 2012
(in thousands)	Commercial Construction		Commercial Secured by Real Estate		Equipment Lease Financing		Commercial Other		Real Estate Construction		Real Estate Mortgage		Home Equity		Consumer Direct		Consumer Indirect		Total
Allowance for loan losses
Beginning balance	$	4,066	$	12,977	$	105	$	5,965	$	344	$	4,240	$	546	$	846	$	4,083	$	33,172
Provision charged to expense		209		1,170		37		207		42		414		64		69		213		2,425
Losses charged off		457		891		0		783		0		232		36		203		605		3,207
Recoveries		113		6		0		98		4		50		0		145		328		744
Ending balance	$	3,931	$	13,262	$	142	$	5,487	$	390	$	4,472	$	574	$	857	$	4,019	$	33,134

Ending balance:
Individually evaluated for impairment	$	1,823	$	1,084	$	0	$	422	$	0	$	0	$	0	$	0	$	0	$	3,329
Collectively evaluated for impairment	$	2,108	$	12,178	$	142	$	5,065	$	390	$	4,472	$	574	$	857	$	4,019	$	29,805

Loans
Ending balance:
Individually evaluated for impairment	$	12,115	$	38,892	$	0	$	13,164	$	0	$	277	$	0	$	0	$	0	$	64,448
Collectively evaluated for impairment	$	103,852	$	775,733	$	10,714	$	368,473	$	56,451	$	647,557	$	83,101	$	124,946	$	312,161	$	2,482,988

	Six Months Ended June 30, 2012
(in thousands)	Commercial Construction		Commercial Secured by Real Estate		Equipment Lease Financing		Commercial Other		Real Estate Construction		Real Estate Mortgage		Home Equity		Consumer Direct			Consumer Indirect			Total
Allowance for loan losses
Beginning balance	$	4,023	$	11,753	$	112	$	5,608	$	354	$	4,302	$	562	$	917		$	5,540		$	33,171
Provision charged to expense		251		2,450		30		925		197		485		93		(48	)		(798	)		3,585
Losses charged off		475		987		0		1,395		171		422		82		349			1,452			5,333
Recoveries		132		46		0		349		10		107		1		337			729			1,711
Ending balance	$	3,931	$	13,262	$	142	$	5,487	$	390	$	4,472	$	574	$	857		$	4,019		$	33,134

Ending balance:
Individually evaluated for impairment	$	1,823	$	1,084	$	0	$	422	$	0	$	0	$	0	$	0		$	0		$	3,329
Collectively evaluated for impairment	$	2,108	$	12,178	$	142	$	5,065	$	390	$	4,472	$	574	$	857		$	4,019		$	29,805

Loans
Ending balance:
Individually evaluated for impairment	$	12,115	$	38,892	$	0	$	13,164	$	0	$	277	$	0	$	0		$	0		$	64,448
Collectively evaluated for impairment	$	103,852	$	775,733	$	10,714	$	368,473	$	56,451	$	647,557	$	83,101	$	124,946		$	312,161		$	2,482,988