Allowance For Loan Losses (Tables)

9 Months Ended

Sep. 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 nine months ended September 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 September 30, 2014 and December 31, 2013 (in thousands).



	Commercial &		Commercial		Residential						DDA
	Industrial		Real Estate		Real Estate		Home equity		Consumer		Overdrafts		Total
Nine months ended September 30, 2014
Allowance for loan loss
Beginning balance	$	1,139	$	10,775	$	6,057	$	1,672	$	77	$	855	$	20,575
Charge-offs	330		1,665		1,348		288		171		1,052		4,854
Recoveries	85		94		91		—		172		654		1,096
Provision	564		402		2,159		107		10		293		3,535
Provision for acquired loans	135		—		—		—		—		—		135
Ending balance	$	1,593	$	9,606	$	6,959	$	1,491	$	88	$	750	$	20,487

Nine months ended September 30, 2013
Allowance for loan loss
Beginning balance	$	498	$	10,440	$	5,229	$	1,699	$	81	$	862	$	18,809
Charge-offs	772		803		1,598		278		326		1,102		4,879
Recoveries	51		669		137		—		242		674		1,773
Provision	1,460		201		2,481		268		79		414		4,903
Ending balance	$	1,237	$	10,507	$	6,249	$	1,689	$	76	$	848	$	20,606

As of September 30, 2014
Allowance for loan loss
Evaluated for impairment:
Individually	$	—	$	247	$	—	$	—	$	—	$	—	$	247
Collectively	1,551		8,705		6,923		1,491		88		750		19,508
Acquired with deteriorated
credit quality	42		654		36		—		—		—		732
Total	$	1,593	$	9,606	$	6,959	$	1,491	$	88	$	750	$	20,487

Loans
Evaluated for impairment:
Individually	$	—	$	6,115	$	451	$	297	$	—	$	—	$	6,863
Collectively	128,726		1,014,641		1,273,230		144,241		40,918		3,618		2,605,374
Acquired with deteriorated
credit quality	1,736		13,837		381		2,427		124		—		18,505
Total	$	130,462	$	1,034,593	$	1,274,062	$	146,965	$	41,042	$	3,618	$	2,630,742

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	146,318		1,020,657		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	$	148,302	$	1,057,048	$	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.
(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 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
September 30, 2014
Pass	$	116,498	$	967,581	$	1,084,079
Special mention	654		19,134		19,788
Substandard	12,900		47,443		60,343
Doubtful	410		435		845
Total	$	130,462	$	1,034,593	$	1,165,055

December 31, 2013
Pass	$	141,818	$	974,368	$	1,116,186
Special mention	648		20,072		20,720
Substandard	5,416		62,139		67,555
Doubtful	420		469		889
Total	$	148,302	$	1,057,048	$	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
September 30, 2014
Residential real estate	$	1,271,767	$	2,295	$	1,274,062
Home equity - junior lien	146,689		276		146,965
Consumer	41,001		41		41,042
DDA overdrafts	3,617		1		3,618
Total	$	1,463,074	$	2,613	$	1,465,687

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 September 30, 2014 and December 31, 2013 (in thousands):



	Originated Loans
	September 30, 2014
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	1,176,782	$	4,428	$	683	$	164	$	—	$	2,131	$	1,184,188
Home equity - junior lien	143,460		590		25		136		—		127		144,338
Commercial and industrial	114,963		188		—		—		—		90		115,241
Commercial real estate	859,813		938		—		—		—		9,270		870,021
Consumer	32,994		46		12		—		—		—		33,052
DDA overdrafts	3,025		590		2		1		—		—		3,618
Total	$	2,331,037	$	6,780	$	722	$	301	$	—	$	11,618	$	2,350,458

	Acquired Loans
	September 30, 2014
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	89,373	$	406	$	95	$	—	$	—	$	—	$	89,874
Home equity - junior lien	2,612		2		—		13		—		—		2,627
Commercial and industrial	13,572		3		8		86		—		1,552		15,221
Commercial real estate	157,412		1,477		85		393		1,016		4,189		164,572
Consumer	7,802		145		2		16		—		25		7,990
DDA overdrafts	—		—		—		—		—		—		—
Total	$	270,771	$	2,033	$	190	$	508	$	1,016	$	5,766	$	280,284

	Total Loans
	September 30, 2014
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	1,266,155	$	4,834	$	778	$	164	$	—	$	2,131	$	1,274,062
Home equity - junior lien	146,072		592		25		149		—		127		146,965
Commercial and industrial	128,535		191		8		86		—		1,642		130,462
Commercial real estate	1,017,225		2,415		85		393		1,016		13,459		1,034,593
Consumer	40,796		191		14		16		—		25		41,042
DDA overdrafts	3,025		590		2		1		—		—		3,618
Total	$	2,601,808	$	8,813	$	912	$	809	$	1,016	$	17,384	$	2,630,742




	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	128,015		—		—		—		—		79		128,094
Commercial real estate	852,090		668		—		—		—		13,097		865,855
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	146,268		—		80		—		—		1,954		148,302
Commercial real estate	1,028,108		3,440		273		109		7,534		17,584		1,057,048
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 September 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.



	September 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	$	451	$	451	$	—	$	459	$	459	$	—
Home equity - junior liens	297		297		—		298		298		—
Commercial and industrial	—		—		—		—		—		—
Commercial real estate	4,718		4,718		—		8,421		8,361		—
Consumer	—		—		—		—		—		—
DDA overdrafts	—		—		—		—		—		—
Total	$	5,466	$	5,466	$	—	$	9,178	$	9,118	$	—

With an allowance recorded
Residential real estate	$	—	$	—	$	—	$	—	$	—	$	—
Home equity - junior liens	—		—		—		—		—		—
Commercial and industrial	—		—		—		—		—		—
Commercial real estate	1,397		1,397		247		3,416		3,416		880
Consumer	—		—		—		—		—		—
DDA overdrafts	—		—		—		—		—		—
Total	$	1,397	$	1,397	$	247	$	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 nine months ended
	September 30, 2014				September 30, 2013
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
With no related allowance recorded:
Residential real estate	$	453	$	—	$	464	$	—
Home equity - junior liens	297		—		297		—
Commercial and industrial	—		—		—		—
Commercial real estate	7,329		4		9,200		24
Consumer	—		—		—		—
DDA overdrafts	—		—		—		—
Total	$	8,079	$	4	$	9,961	$	24

With an allowance recorded
Residential real estate	$	—	$	—	$	—	$	—
Home equity - junior liens	—		—		—		—
Commercial and industrial	—		—		—		—
Commercial real estate	1,837		30		3,277		—
Consumer	—		—		—		—
DDA overdrafts	—		—		—		—
Total	$	1,837	$	30	$	3,277	$	—

Schedule Of Troubled Debt Restructurings

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



	September 30, 2014						December 31, 2013
			Non-						Non-
	Accruing		Accruing		Total		Accruing		Accruing		Total
Commercial and industrial	$	77	$	—	$	77	$	88	$	—	$	88
Commercial real estate	2,269		—		2,269		1,783		—		1,783
Residential real estate	17,833		207		18,040		18,651		1,693		20,344
Home equity	2,821		—		2,821		2,859		14		2,873
Consumer	—		—		—		—		—		—
	$	23,000	$	207	$	23,207	$	23,381	$	1,707	$	25,088



	New TDRs					New TDRs
	For the nine months ended					For the nine months ended
	September 30, 2014					September 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	$	91	$	91
Commercial real estate	1	432		432		3	1,567		1,567
Residential real estate	26	2,049		2,049		30	2,808		2,808
Home equity	8	203		203		12	323		323
Consumer	—	—		—		—	—		—
	35	$	2,684	$	2,684	46	$	4,789	$	4,789