Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2014

Receivables [Abstract]

Summary of Activity in the Loan Balances and the Allowance for Loan Losses by Segment

Activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2014 and 2013 are summarized as follows:

Nine Months Ended September 30, 2014
	Commercial Real Estate			Commercial			Residential Real Estate			Home Equity Loans			Indirect			Consumer			Total
	(Dollars in thousands)
Allowance for loan losses:
Balance, beginning of period	$	10,122		$	497		$	1,411		$	3,484		$	1,593		$	398		$	17,505
Losses charged off	(1,133		)	(35		)	(213		)	(1,074		)	(283		)	(150		)	(2,888		)
Recoveries	32			32			6			65			143			24			302
Provision charged to expense	94			204			865			644			639			67			2,513
Balance, end of period	$	9,115		$	698		$	2,069		$	3,119		$	2,092		$	339		$	17,432
Three Months Ended September 30, 2014
	Commercial Real Estate			Commercial			Residential Real Estate			Home Equity Loans			Indirect			Consumer			Total
	(Dollars in thousands)
Allowance for loan losses:
Balance, beginning of period	$	9,944		$	476		$	1,446		$	3,789		$	1,533		$	242		$	17,430
Losses charged off	(433		)	(35		)	(63		)	(179		)	(106		)	(41		)	(857		)
Recoveries	11			30			—			46			46			6			139
Provision charged to expense	(407		)	227			686			(537		)	619			132			720
Balance, end of period	$	9,115		$	698		$	2,069		$	3,119		$	2,092		$	339		$	17,432
As of September 30, 2014
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	703		$	5		$	178		$	—		$	—		$	—		$	886
Collectively evaluated for impairment	8,412			693			1,891			3,119			2,092			339			16,546
Total ending allowance balance	$	9,115		$	698		$	2,069		$	3,119		$	2,092		$	339		$	17,432
Loans:
Individually evaluated for impairment	$	15,271		$	184		$	1,356		$	852		$	147		$	64		$	17,874
Collectively evaluated for impairment	398,354			85,359			69,535			124,466			213,303			13,623			904,640
Total ending loans balance	$	413,625		$	85,543		$	70,891		$	125,318		$	213,450		$	13,687		$	922,514

Nine Months Ended September 30, 2013
	Commercial Real Estate			Commercial			Residential Real Estate			Home Equity Loans			Indirect			Consumer			Total
Allowance for loan losses:
Balance, beginning of period	$	11,386		$	835		$	1,559		$	2,357		$	1,230		$	270		$	17,637
Losses charged off	(1,475		)	(120		)	(679		)	(1,439		)	(555		)	(181		)	(4,449		)
Recoveries	584			7			277			60			276			49			1,253
Provision charged to expense	(33		)	(246		)	281			2,530			660			158			3,350
Balance, end of period	$	10,462		$	476		$	1,438		$	3,508		$	1,611		$	296		$	17,791
Three Months Ended September 30, 2013
	Commercial Real Estate			Commercial			Residential Real Estate			Home Equity Loans			Indirect			Consumer			Total
	(Dollars in thousands)
Allowance for loan losses:
Balance, beginning of period	$	10,424		$	438		$	1,606		$	3,508		$	1,581		$	258		$	17,815
Losses charged off	(630		)	—			(35		)	(410		)	(196		)	(83		)	(1,354		)
Recoveries	83			2			178			5			104			8			380
Provision charged to expense	585			36			(311		)	405			122			113			950
Balance, end of period	$	10,462		$	476		$	1,438		$	3,508		$	1,611		$	296		$	17,791
Year Ended December 31, 2013
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	865		$	73		$	—		$	—		$	—		$	—		$	938
Collectively evaluated for impairment	9,257			$	424		$	1,411		$	3,484		$	1,593		$	398		16,567
Total ending allowance balance	$	10,122		$	497		$	1,411		$	3,484		$	1,593		$	398		$	17,505
Loans:
Individually evaluated for impairment	$	17,842		$	472		$	1,731		$	1,111		$	195		$	160		$	21,511
Collectively evaluated for impairment	383,749			88,174			64,776			121,965			206,128			15,996			880,788
Total ending loans balance	$	401,591		$	88,646		$	66,507		$	123,076		$	206,323		$	16,156		$	902,299

Age Analysis of Past Due Loans

Information regarding delinquent loans as of September 30, 2014 and December 31, 2013 is as follows:

Age Analysis of Past Due Loans as of September 30, 2014

(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days and Greater		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days and Accruing
Commercial real estate	$	614	$	233	$	5,684	$	6,531	$	407,094	$	413,625	$	—
Commercial	55		—		172		227		85,316		85,543		—
Residential real estate	267		63		1,668		1,998		68,893		70,891		—
Home equity loans	123		149		1,766		2,038		123,280		125,318		—
Indirect	324		118		28		470		212,980		213,450
Consumer	169		—		308		477		13,210		13,687		—
Total	$	1,552	$	563	$	9,626	$	11,741	$	910,773	$	922,514	$	—

Age Analysis of Past Due Loans as of December 31, 2013

(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days and Greater		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days and Accruing
Commercial real estate	$	525	$	4	$	7,401	$	7,930	$	393,661	$	401,591	$	—
Commercial	—		18		219		237		88,409		88,646		—
Residential real estate	347		960		2,252		3,559		62,948		66,507		158
Home equity loans	932		707		1,078		2,717		120,359		123,076		43
Indirect	332		30		23		385		205,938		206,323
Consumer	183		25		191		399		15,757		16,156		—
Total	$	2,319	$	1,744	$	11,164	$	15,227	$	887,072	$	902,299	$	201

Impaired Loans

Impaired loans for the Period Ended September 30, 2014, December 31, 2013 and September 30, 2013 are as follows:

	At September 30, 2014						Three Months Ended September 30, 2014		Nine Months Ended September 30, 2014
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Balance		Average Recorded Balance
	(Dollars in thousands)
With no related allowance recorded:
Commercial real estate	$	13,235	$	17,060	$	—	$	13,255	$	13,008
Commercial	149		466		—		751		568
Residential real estate	1,178		1,391		—		1,208		1,216
Home equity loans	852		1,535		—		903		928
Indirect	147		231		—		156		168
Consumer	64		103		—		64		64
With allowance recorded:
Commercial real estate	2,036		2,872		703		2,849		3,120
Commercial	35		35		5		146		183
Residential real estate	178		178		178		100		73
Home equity loans	—		—		—		—		—
Indirect	—		—		—		—		—
Consumer	—		—		—		—		—
Total	$	17,874	$	23,871	$	886	$	19,432	$	19,328

Note: The differences between the recorded investment and unpaid principal balance amounts represents partial charge offs.

	At December 31, 2013
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Balance
	(Dollars in thousands)
With no related allowance recorded:
Commercial real estate	$	15,530	$	20,438	$	—	$	16,705
Commercial	214		267		—		186
Residential real estate	1,731		1,940		—		1,832
Home equity loans	1,111		1,623		—		847
Indirect	195		268		—		178
Consumer	160		204		—		111
With allowance recorded:
Commercial real estate	2,312		2,319		865		4,374
Commercial	258		258		73		346
Residential real estate	—		—		—		—
Home equity loans	—		—		—		—
Indirect	—		—		—		—
Consumer	—		—		—		—
Total	$	21,511	$	27,317	$	938	$	24,579

Note: The differences between the recorded investment and unpaid principal balance amounts represents partial charge offs.

	At September 30, 2013						Three Months Ended September 30, 2013		Nine Months Ended September 30, 2013
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Balance		Average Recorded Balance
	(Dollars in thousands)
With no related allowance recorded:
Commercial real estate	$	14,625	$	19,617	$	—	$	16,127	$	16,667
Commercial	245		298		—		203		167
Residential real estate	1,613		1,801		—		1,802		1,800
Home equity loans	1,107		1,518		—		897		669
Indirect	191		293		—		208		129
Consumer	152		203		—		113		87
With allowance recorded:
Commercial real estate	5,523		8,842		1,462		5,139		5,781
Commercial	343		343		79		342		396
Residential real estate	57		154		6		29		60
Home equity loans	—		—		—		—		—
Indirect	—		—		—		—		—
Consumer	—		—		—		—		—
Total	$	23,856	$	33,069	$	1,547	$	24,860	$	25,756

*Impaired loans shown in the tables above included loans that were classified as troubled debt restructurings ("TDRs"). The restructuring of a loan is considered a TDR if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession.

Troubled Debt Restructuring Loan Information

The following table provides the number of loans modified in a TDR and the recorded investment and unpaid principal balance by loan segment as of September 30, 2014 and September 30, 2013.

	Three Months Ended As of September 30, 2014			Nine Months Ended As of September 30, 2014
	(Dollars in thousands)
	Number of Contracts	Recorded Investment	Unpaid Principal	Number of Contracts	Recorded Investment	Unpaid Principal
Commercial real estate	2	$174	$267	21	$6,694	$9,092
Commercial	—	—	—	1	—	170
Residential real estate	—	—	—	13	854	958
Home equity loans	—	—	—	28	659	1,288
Indirect Loans	—	—	—	39	147	210
Consumer Loans	—	—	—	1	64	64
Total	2	$174	$267	103	$8,418	$11,782

Note: The differences between the recorded investment and unpaid principal balance amounts represents partial charge offs.

	Three Months Ended As of September 30, 2013			Nine Months Ended As of September 30, 2013
	(Dollars in thousands)
	Number of Contracts	Recorded Investment	Unpaid Principal	Number of Contracts	Recorded Investment	Unpaid Principal
Commercial real estate	—	$—	$—	18	$6,742	$8,724
Commercial	—	—	—	1	—	170
Residential real estate	1	42	46	12	966	1,052
Home equity loans	5	277	320	27	882	1,247
Indirect Loans	3	31	31	38	227	336
Consumer Loans	2	27	27	1	55	55
Total	9	$350	$397	97	$8,872	$11,584

Note 1: The differences between the recorded investment and unpaid principal balance amounts represents partial charge offs.

Loans on Nonaccrual Status

Nonaccrual loan balances at September 30, 2014 and December 31, 2013 are as follows:

Loans On Nonaccrual Status	September 30, 2014		December 31, 2013
	(Dollars in thousands)
Commercial real estate	$	8,728	$	11,241
Commercial	172		289
Residential real estate	4,064		5,231
Home equity loans	4,366		4,464
Indirect	446		443
Consumer	417		318
Total Nonaccrual Loans	$	18,193	$	21,986

Summary of Recorded Investment Based on Delinquency Status

The following tables present the recorded investment of commercial real estate, commercial and residential real estate loans by internal credit risk grade and the recorded investment of residential real estate, home equity, indirect and consumer loans based on delinquency status as of September 30, 2014 and December 31, 2013:

Commercial Credit Exposure	Commercial Real Estate		Commercial		Residential Real Estate*		Home Equity Loans		Indirect		Consumer		Total
	September 30, 2014
	(Dollars in thousands)
Loans graded by internal credit risk grade:
Grade 1 — Minimal	$	—	$	69	$	—	$	—	$	—	$	—	$	69
Grade 2 — Modest	600		4,203		—		—		—		—		4,803
Grade 3 — Better than average	8,675		47		—		—		—		—		8,722
Grade 4 — Average	284,370		61,069		3,175		—		—		—		348,614
Grade 5 — Acceptable	93,705		19,761		2,366		—		—		—		115,832
Total Pass Credits	387,350		85,149		5,541		—		—		—		478,040
Grade 6 — Special mention	5,520		221		233		—		—		—		5,974
Grade 7 — Substandard	20,755		173		844		—		—		—		21,772
Grade 8 — Doubtful	—		—		—		—		—		—		—
Grade 9 — Loss	—		—		—		—		—		—		—
Total loans internally credit risk graded	413,625		85,543		6,618		—		—		—		505,786
Loans not monitored by internal risk grade:
Current loans not internally risk graded	—		—		62,336		123,280		212,980		13,210		411,806
30-59 days past due loans not internally risk graded	—		—		267		123		324		169		883
60-89 days past due loans not internally risk graded	—		—		2		149		118		—		269
90+ days past due loans not internally risk graded	—		—		1,668		1,766		28		308		3,770
Total loans not internally credit risk graded	—		—		64,273		125,318		213,450		13,687		416,728
Total loans internally and not internally credit risk graded	$	413,625	$	85,543	$	70,891	$	125,318	$	213,450	$	13,687	$	922,514

* Residential loans with an internal commercial credit risk grade include loans that are secured by non owner occupied 1-4 family residential properties and conventional 1-4 family residential properties.

Commercial Credit Exposure	Commercial Real Estate		Commercial		Residential Real Estate*		Home Equity Loans		Indirect		Consumer		Total
	December 31, 2013
	(Dollars in thousands)
Loans graded by internal credit risk grade:
Grade 1 — Minimal	$	—	$	52	$	—	$	—	$	—	$	—	$	52
Grade 2 — Modest	—		37		—		—		—		—		37
Grade 3 — Better than average	857		—		—		—		—		—		857
Grade 4 — Average	22,580		271		613		—		—		—		23,464
Grade 5 — Acceptable	352,781		84,979		5,589		—		—		—		443,349
Total Pass Credits	376,218		85,339		6,202		—		—		—		467,759
Grade 6 — Special mention	2,146		2,891		35		—		—		—		5,072
Grade 7 — Substandard	23,227		416		625		—		—		—		24,268
Grade 8 — Doubtful	—		—		—		—		—		—		—
Grade 9 — Loss	—		—		—		—		—		—		—
Total loans internally credit risk graded	401,591		88,646		6,862		—		—		—		497,099
Loans not monitored by internal risk grade:
Current loans not internally risk graded	—		—		56,390		120,359		205,938		15,757		398,444
30-59 days past due loans not internally risk graded	—		—		64		932		332		183		1,511
60-89 days past due loans not internally risk graded	—		—		960		707		30		25		1,722
90+ days past due loans not internally risk graded	—		—		2,231		1,078		23		191		3,523
Total loans not internally credit risk graded	—		—		59,645		123,076		206,323		16,156		405,200
Total loans internally and not internally credit risk graded	$	401,591	$	88,646	$	66,507	$	123,076	$	206,323	$	16,156	$	902,299

* Residential loans with an internal commercial credit risk grade include loans that are secured by non owner occupied 1-4 family residential properties and conventional 1-4 family residential properties.