Allowance For Loan Losses (Tables)

6 Months Ended

Jun. 30, 2014

Schedule Of Allowance For Loan Loss By Portfolio Segment

The following table summarizes the activity in the allowance for loan loss, by portfolio segment, for the six months ended June 30, 2014 and 2013 (in thousands). The following table 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 June 30, 2014 and December 31, 2013 (in thousands).



	Commercial &			Commercial		Residential								DDA
	Industrial			Real Estate		Real Estate		Home equity			Consumer			Overdrafts		Total
Six months ended June 30, 2014
Allowance for loan loss
Beginning balance	$	1,139		$	10,775	$	6,057	$	1,672		$	77		$	855	$	20,575
Charge-offs	5			969		743		146			122			662		2,647
Recoveries	81			83		63		—			129			454		810
Provision	(248		)	508		1,087		(83		)	(3		)	399		1,660
Provision for acquired loans	$	138		$	—	$	—	$	—		$	—		$	—	138
Ending balance	$	1,105		$	10,397	$	6,464	$	1,443		$	81		$	1,046	$	20,536

Six months ended June 30, 2013
Allowance for loan loss
Beginning balance	$	498		$	10,440	$	5,229	$	1,699		$	81		$	862	$	18,809
Charge-offs	392			622		1,111		270			224			687		3,306
Recoveries	21			34		68		—			217			477		817
Provision	939			642		1,792		222			7			147		3,749
Ending balance	$	1,066		$	10,494	$	5,978	$	1,651		$	81		$	799	$	20,069

As of June 30, 2014
Allowance for loan loss
Evaluated for impairment:
Individually	$	—		$	240	$	—	$	—		$	—		$	—	$	240
Collectively	1,063			9,500		6,428		1,443			81			1,046		19,561
Acquired with deteriorated
credit quality	42			657		36		—			—			—		735
Total	$	1,105		$	10,397	$	6,464	$	1,443		$	81		$	1,046	$	20,536

Loans
Evaluated for impairment:
Individually	$	—		$	7,239	$	453	$	297		$	—		$	—	$	7,989
Collectively	147,711			970,095		1,242,007		142,736			42,738			3,501		2,548,788
Acquired with deteriorated
credit quality	1,731			16,218		512		2,419			120			—		21,000
Total	$	149,442		$	993,552	$	1,242,972	$	145,452		$	42,858		$	3,501	$	2,577,777

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		1,201,894		145,025			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	$	1,204,450	$	146,090		$	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 table presents loans by the Company’s commercial loans by credit quality indicators, by class (in thousands):



	Commercial and industrial		Commercial real estate		Total
June 30, 2014
Pass	$	132,766	$	920,647	$	1,053,413
Special mention	10,643		19,771		30,414
Substandard	5,611		52,703		58,314
Doubtful	422		431		853
Total	$	149,442	$	993,552	$	1,142,994

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
June 30, 2014
Residential real estate	$	1,239,717	$	3,255	$	1,242,972
Home equity - junior lien	145,217		235		145,452
Consumer	42,841		17		42,858
DDA overdrafts	3,501		—		3,501
Total	$	1,431,276	$	3,507	$	1,434,783

December 31, 2013
Residential real estate	$	1,201,631	$	2,819	$	1,204,450
Home equity - junior lien	145,812		278		146,090
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 table presents an aging analysis of the Company’s accruing and non-accruing loans, by class, as of June 30, 2014 and December 31, 2013 (in thousands):



	Originated Loans
	June 30, 2014
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	1,140,373	$	4,421	$	789	$	584	$	—	$	2,240	$	1,148,407
Home equity - junior lien	141,927		761		120		44		—		191		143,043
Commercial and industrial	133,028		—		25		—		—		137		133,190
Commercial real estate	817,777		443		—		—		—		9,087		827,307
Consumer	33,674		79		1		—		—		—		33,754
DDA overdrafts	3,220		276		5		—		—		—		3,501
Total	$	2,269,999	$	5,980	$	940	$	628	$	—	$	11,655	$	2,289,202

	Acquired Loans
	June 30, 2014
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	93,392	$	699	$	42	$	132	$	—	$	300	$	94,565
Home equity - junior lien	2,406		3		—		—		—		—		2,409
Commercial and industrial	14,119		43		15		—		—		2,075		16,252
Commercial real estate	159,741		1,010		165		18		917		4,394		166,245
Consumer	8,730		330		27		17		—		—		9,104
DDA overdrafts	—		—		—		—		—		—		—
Total	$	278,388	$	2,085	$	249	$	167	$	917	$	6,769	$	288,575

	Total Loans
	June 30, 2014
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	1,233,765	$	5,120	$	831	$	716	$	—	$	2,540	$	1,242,972
Home equity - junior lien	144,333		764		120		44		—		191		145,452
Commercial and industrial	147,147		43		40		—		—		2,212		149,442
Commercial real estate	977,518		1,453		165		18		917		13,481		993,552
Consumer	42,404		409		28		17		—		—		42,858
DDA overdrafts	3,220		276		5		—		—		—		3,501
Total	$	2,548,387	$	8,065	$	1,189	$	795	$	917	$	18,424	$	2,577,777



	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	$	99,089	$	842	$	172	$	—	$	—	$	682	$	100,785
Home equity - junior lien	2,965		—		—		—		—		—		2,965
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	$	1,196,000	$	4,965	$	667	$	231	$	—	$	2,587	$	1,204,450
Home equity - junior lien	144,932		880		—		42		—		236		146,090
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 table presents the Company’s impaired loans, by class, as of June 30, 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.



	June 30, 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	$	453	$	453	$	—	$	459	$	459	$	—
Home equity - junior liens	297		297		—		298		298		—
Commercial and industrial	—		—		—		—		—		—
Commercial real estate	5,837		6,629		—		8,421		8,361		—
Consumer	—		—		—		—		—		—
DDA overdrafts	—		—		—		—		—		—
Total	$	6,587	$	7,379	$	—	$	9,178	$	9,118	$	—

With an allowance recorded
Residential real estate	$	—	$	—	$	—	$	—	$	—	$	—
Home equity - junior liens	—		—		—		—		—		—
Commercial and industrial	—		—		—		—		—		—
Commercial real estate	1,403		4,333		240		3,416		3,416		880
Consumer	—		—		—		—		—		—
DDA overdrafts	—		—		—		—		—		—
Total	$	1,403	$	4,333	$	240	$	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 six months ended
	June 30, 2014				June 30, 2013
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
With no related allowance recorded:
Residential real estate	$	455	$	—	$	464	$	—
Home equity - junior liens	297		—		297		—
Commercial and industrial	—		—		—		—
Commercial real estate	8,120		9		9,450		—
Consumer	—		—		—		—
DDA overdrafts	—		—		—		—
Total	$	8,872	$	9	$	10,211	$	—

With an allowance recorded
Residential real estate	$	—	$	—	$	—	$	—
Home equity - junior liens	—		—		—		—
Commercial and industrial	—		—		—		—
Commercial real estate	2,055		68		3,103		—
Consumer	—		—		—		—
DDA overdrafts	—		—		—		—
Total	$	2,055	$	68	$	3,103	$	—

Schedule Of Troubled Debt Restructurings

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



	June 30, 2014						December 31, 2013
			Non-						Non-
	Accruing		Accruing		Total		Accruing		Accruing		Total
Commercial and industrial	$	86	$	—	$	86	$	88	$	—	$	88
Commercial real estate	2,281		—		2,281		1,783		—		1,783
Residential real estate	18,893		320		19,213		18,651		1,693		20,344
Home equity	2,803		55		2,858		2,859		14		2,873
Consumer	—		—		—		—		—		—
	$	24,063	$	375	$	24,438	$	23,381	$	1,707	$	25,088



	New TDRs					New TDRs
	For the six months ended					For the six months ended
	June 30, 2014					June 30, 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	1	$	5	$	5	1	$	95	$	95
Commercial real estate	1	434		434		3	1,571		1,571
Residential real estate	16	1,209		1,209		26	2,845		2,845
Home equity	7	170		170		8	185		185
Consumer	—	—		—		—	—		—
	25	$	1,818	$	1,818	38	$	4,696	$	4,696