Allowance For Loan Losses (Tables)

3 Months Ended

Mar. 31, 2014

Schedule Of Allowance For Loan Loss By Portfolio Segment

The following summarizes the activity in the allowance for loan loss, by portfolio segment, for the three months ended March 31, 2014 and 2013 (in thousands). The following also presents the balance in the allowance for loan loss disaggregated on the basis of the Company’s impairment measurement method and the related recorded investment in loans, by portfolio segment, as of March 31, 2014 and December 31, 2013 (in thousands).



	Commercial &			Commercial		Residential								DDA
	Industrial			Real Estate		Real Estate		Home equity			Consumer			Overdrafts		Total
Three months ended March 31, 2014
Allowance for loan loss
Beginning balance	$	1,139		$	10,775	$	6,057	$	1,672		$	77		$	855	$	20,575
Charge-offs	4			382		427		108			84			341		1,346
Recoveries	63			30		24		—			76			259		452
Provision	(123		)	837		756		(103		)	5			3		1,375
Provision for acquired loans	$	(12	)	$	—	$	—	$	—		$	—		$	—	(12		)
Ending balance	$	1,063		$	11,260	$	6,410	$	1,461		$	74		$	776	$	21,044

Three months ended March 31, 2013
Allowance for loan loss
Beginning balance	$	498		$	10,440	$	5,229	$	1,699		$	81		$	862	$	18,809
Charge-offs	62			203		591		116			3			339		1,314
Recoveries	1			18		48		—			147			274		488
Provision	67			554		1,189		52			(149		)	25		1,738
Ending balance	$	504		$	10,809	$	5,875	$	1,635		$	76		$	822	$	19,721

As of March 31, 2014
Allowance for loan loss
Evaluated for impairment:
Individually	$	—		$	533	$	—	$	—		$	—		$	—	$	533
Collectively	760			10,448		6,407		1,461			74			776		19,926
Acquired with deteriorated
credit quality	303			279		3		—			—			—		585
Total	$	1,063		$	11,260	$	6,410	$	1,461		$	74		$	776	$	21,044

Loans
Evaluated for impairment:
Individually	$	—		$	10,947	$	456	$	297		$	—		$	—	$	11,700
Collectively	142,358			980,885		1,213,816		139,310			42,206			4,001		2,522,576
Acquired with deteriorated
credit quality	1,750			18,060		513		2,322			114			—		22,759
Total	$	144,108		$	1,009,892	$	1,214,785	$	141,929		$	42,320		$	4,001	$	2,557,035

As of December 31, 2013
Allowance for loan loss
Evaluated for impairment:
Individually	$	—		$	880	$	—	$	—		$	—		$	—	$	880
Collectively	827			9,615		6,054		1,672			77			855		19,100
Acquired with deteriorated
credit quality	312			280		3		—			—			—		595
Total	$	1,139		$	10,775	$	6,057	$	1,672		$	77		$	855	$	20,575

Loans
Evaluated for impairment:
Individually	$	—		$	11,837	$	459	$	298		$	—		$	—	$	12,594
Collectively	162,500			1,004,475		1,204,594		142,325			46,292			3,905		2,564,091
Acquired with deteriorated
credit quality	1,984			24,554		2,097		767			110			—		29,512
Total	$	164,484		$	1,040,866	$	1,207,150	$	143,390		$	46,402		$	3,905	$	2,606,197

Schedule Of Credit Quality Indicators

The Company uses the following definitions for its risk ratings:



Risk Rating	Description
Pass ratings:
(a) Exceptional	Loans classified as exceptional are secured with liquid collateral conforming to the internal loan policy. Loans rated within this category pose minimal risk of loss to the bank and the risk grade within this pool of loans is generally updated on an annual basis.
(b) Good	Loans classified as good have similar characteristics that include a strong balance sheet, satisfactory debt service coverage ratios, strong management and/or guarantors, and little exposure to economic cycles. Loans within this category are generally reviewed on an annual basis. Loans in this category generally have a low chance of loss to the bank.
(c) Acceptable	Loans classified as acceptable have acceptable liquidity levels, adequate debt service coverage ratios, experienced management, and have average exposure to economic cycles. Loans within this category generally have a low risk of loss to the bank.
(d) Pass/watch	Loans classified as pass/watch have erratic levels of leverage and/or liquidity, cash flow is volatile and the borrower is subject to moderate economic risk. A borrower in this category poses a low to moderate risk of loss to the bank.
Special mention	Loans classified as special mention have a potential weakness(es) that deserves management’s close attention. The potential weakness could result in deterioration of the loan repayment or the bank’s credit position at some future date. A loan rated in this category poses a moderate loss risk to the bank.
Substandard	Loans classified as substandard reflect a customer with a well defined weakness that jeopardizes the liquidation of the debt. Loans in this category have the possibility that the bank will sustain some loss if the deficiencies are not corrected and the bank’s collateral value is weakened by the financial deterioration of the borrower.
Doubtful	Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristics that make collection of the full contract amount highly improbable. Loans rated in this category are most likely to cause the bank to have a loss due to a collateral shortfall or a negative capital position.

The following presents loans by the Company’s commercial loans by credit quality indicators, by class (in thousands):



	Commercial and industrial		Commercial real estate		Total
March 31, 2014
Pass	$	137,353	$	929,467	$	1,066,820
Special mention	1,118		23,004		24,122
Substandard	5,223		56,976		62,199
Doubtful	414		445		859
Total	$	144,108	$	1,009,892	$	1,154,000

December 31, 2013
Pass	$	158,000	$	958,186	$	1,116,186
Special mention	648		20,072		20,720
Substandard	5,416		62,139		67,555
Doubtful	420		469		889
Total	$	164,484	$	1,040,866	$	1,205,350

Schedule Of Noncommercial Loans By Payment Performance

The following table presents the Company's non-commercial loans by payment performance, by class (in thousands):



	Performing		Non-Performing		Total
March 31, 2014
Residential real estate	$	1,213,245	$	1,540	$	1,214,785
Home equity - junior lien	141,830		99		141,929
Consumer	42,319		1		42,320
DDA overdrafts	4,001		—		4,001
Total	$	1,401,395	$	1,640	$	1,403,035

December 31, 2013
Residential real estate	$	1,204,331	$	2,819	$	1,207,150
Home equity - junior lien	143,112		278		143,390
Consumer	46,353		49		46,402
DDA overdrafts	3,900		5		3,905
Total	$	1,397,696	$	3,151	$	1,400,847

Schedule Of Aging Analysis Of Accruing And Non-Accruing Loans

The following presents an aging analysis of the Company’s accruing and non-accruing loans, by class, as of March 31, 2014 and December 31, 2013 (in thousands):



	Originated Loans
	March 31, 2014
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	1,108,719	$	3,328	$	672	$	118	$	—	$	1,188	$	1,114,025
Home equity - junior lien	141,097		552		56		30		—		69		141,804
Commercial and industrial	126,118		77		—		—		—		134		126,329
Commercial real estate	821,681		534		255		—		—		12,812		835,282
Consumer	31,156		53		10		—		—		—		31,219
DDA overdrafts	3,804		195		2		—		—		—		4,001
Total	$	2,232,575	$	4,739	$	995	$	148	$	—	$	14,203	$	2,252,660

	Acquired Loans
	March 31, 2014
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	99,713	$	768	$	45	$	—	$	—	$	234	$	100,760
Home equity - junior lien	104		18		3		—		—		—		125
Commercial and industrial	15,812		83		44		—		—		1,840		17,779
Commercial real estate	166,504		610		167		283		2,729		4,317		174,610
Consumer	10,704		379		17		1		—		—		11,101
DDA overdrafts	—		—		—		—		—		—		—
Total	$	292,837	$	1,858	$	276	$	284	$	2,729	$	6,391	$	304,375

	Total Loans
	March 31, 2014
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	1,208,432	$	4,096	$	717	$	118	$	—	$	1,422	$	1,214,785
Home equity - junior lien	141,201		570		59		30		—		69		141,929
Commercial and industrial	141,930		160		44		—		—		1,974		144,108
Commercial real estate	988,185		1,144		422		283		2,729		17,129		1,009,892
Consumer	41,860		432		27		1		—		—		42,320
DDA overdrafts	3,804		195		2		—		—		—		4,001
Total	$	2,525,412	$	6,597	$	1,271	$	432	$	2,729	$	20,594	$	2,557,035



	Originated Loans
	December 31, 2013
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	1,096,911	$	4,123	$	495	$	231	$	—	$	1,905	$	1,103,665
Home equity - junior lien	141,967		880		—		42		—		236		143,125
Commercial and industrial	144,197		—		—		—		—		79		144,276
Commercial real estate	835,908		668		—		—		—		13,097		849,673
Consumer	32,647		172		7		4		—		—		32,830
DDA overdrafts	3,511		374		15		5		—		—		3,905
Total	$	2,255,141	$	6,217	$	517	$	282	$	—	$	15,317	$	2,277,474

	Acquired Loans
	December 31, 2013
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	101,789	$	842	$	172	$	—	$	—	$	682	$	103,485
Home equity - junior lien	265		—		—		—		—		—		265
Commercial and industrial	18,253		—		80		—		—		1,875		20,208
Commercial real estate	176,018		2,772		273		109		7,534		4,487		191,193
Consumer	12,876		622		29		45		—		—		13,572
DDA overdrafts	—		—		—		—		—		—		—
Total	$	309,201	$	4,236	$	554	$	154	$	7,534	$	7,044	$	328,723

	Total Loans
	December 31, 2013
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	1,198,700	$	4,965	$	667	$	231	$	—	$	2,587	$	1,207,150
Home equity - junior lien	142,232		880		—		42		—		236		143,390
Commercial and industrial	162,450		—		80		—		—		1,954		164,484
Commercial real estate	1,011,926		3,440		273		109		7,534		17,584		1,040,866
Consumer	45,523		794		36		49		—		—		46,402
DDA overdrafts	3,511		374		15		5		—		—		3,905
Total	$	2,564,342	$	10,453	$	1,071	$	436	$	7,534	$	22,361	$	2,606,197

Schedule Of Impaired Loans

The following presents the Company’s impaired loans, by class, as of March 31, 2014 and December 31, 2013 (in thousands). The difference between the unpaid principal balance and the recorded investment generally reflects amounts that have been previously charged-off.



	March 31, 2014						December 31, 2013
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
With no related allowance recorded:
Residential real estate	$	456	$	456	$	—	$	459	$	459	$	—
Home equity - junior liens	297		297		—		298		298		—
Commercial and industrial	—		—		—		—		—		—
Commercial real estate	8,273		9,064		—		8,421		8,361		—
Consumer	—		—		—		—		—		—
DDA overdrafts	—		—		—		—		—		—
Total	$	9,026	$	9,817	$	—	$	9,178	$	9,118	$	—

With an allowance recorded
Residential real estate	$	—	$	—	$	—	$	—	$	—	$	—
Home equity - junior liens	—		—		—		—		—		—
Commercial and industrial	—		—		—		—		—		—
Commercial real estate	2,675		6,330		533		3,416		3,416		880
Consumer	—		—		—		—		—		—
DDA overdrafts	—		—		—		—		—		—
Total	$	2,675	$	6,330	$	533	$	3,416	$	3,416	$	880

Schedule Of Information Related To Average Recorded Investment And Interest Income Recognized On Impaired Loans

The following table presents information related to the average recorded investment and interest income recognized on the Company’s impaired loans, by class (in thousands):



	For the three months ended
	March 31, 2014				March 31, 2013
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
With no related allowance recorded:
Residential real estate	$	456	$	—	$	—	$	—
Home equity - junior liens	297		—		—		—
Commercial and industrial	—		—		—		—
Commercial real estate	8,815		5		10,340		—
Consumer	—		—		—		—
DDA overdrafts	—		—		—		—
Total	$	9,568	$	5	$	10,340	$	—

With an allowance recorded
Residential real estate	$	—	$	—	$	—	$	—
Home equity - junior liens	—		—		—		—
Commercial and industrial	—		—		—		—
Commercial real estate	2,706		30		3,137		—
Consumer	—		—		—		—
DDA overdrafts	—		—		—		—
Total	$	2,706	$	30	$	3,137	$	—

Schedule Of Troubled Debt Restructurings

The following tables set forth the Company’s TDRs (in thousands):



	March 31, 2014						December 31, 2013
			Non-						Non-
	Accruing		Accruing		Total		Accruing		Accruing		Total
Commercial and industrial	$	84	$	—	$	84	$	88	$	—	$	88
Commercial real estate	1,854		—		1,854		1,783		—		1,783
Residential real estate	18,666		274		18,940		18,651		1,693		20,344
Home equity	2,852		14		2,866		2,859		14		2,873
Consumer	—		—		—		—		—		—
	$	23,456	$	288	$	23,744	$	23,381	$	1,707	$	25,088



	New TDRs					New TDRs
	For the three months ended					For the three months ended
	March 31, 2014					March 31, 2013
		Pre		Post			Pre		Post
		Modification		Modification			Modification		Modification
		Outstanding		Outstanding			Outstanding		Outstanding
	Number of	Recorded		Recorded		Number of	Recorded		Recorded
	Contracts	Investment		Investment		Contracts	Investment		Investment
Commercial and industrial	—	$	—	$	—	—	$	—	$	—
Commercial real estate	—	—		—		1	1,071		1,071
Residential real estate	7	351		351		9	853		853
Home equity	4	116		116		17	1,075		1,075
Consumer	—	—		—		—	—		—
	11	$	467	$	467	27	$	2,999	$	2,999