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Loans and Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2015
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 six months ended June 30, 2015, June 30, 2014 and the year ended December 31, 2014 are summarized as follows:

Six Months Ended June 30, 2015
 
Commercial
Real Estate
 
Commercial
 
Residential
Real Estate
 
Home
Equity Loans
 
Indirect
 
Consumer
 
Total
 
(Dollars in thousands)
Allowance for loan losses:

Balance, beginning of period
$
8,446

 
$
874

 
$
2,127

 
$
3,130

 
$
2,459

 
$
380

 
$
17,416

Losses charged off
(352
)
 
(50
)
 
(136
)
 
(664
)
 
(301
)
 
(155
)
 
(1,658
)
Recoveries
21

 
2

 
1

 
13

 
119

 
15

 
171

Provision charged to expense
(1,292
)
 
155

 
(135
)
 
816

 
264

 
192

 
—

Balance, end of period
$
6,823

 
$
981

 
$
1,857

 
$
3,295

 
$
2,541

 
$
432

 
$
15,929

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2015
 
Commercial
Real Estate
 
Commercial
 
Residential
Real Estate
 
Home
Equity
Loans
 
Indirect
 
Consumer
 
Total
 
(Dollars in thousands)
Allowance for loan losses:
 
Balance, beginning of period
$
7,277

 
$
1,110

 
$
2,009

 
$
3,229

 
$
2,763

 
$
409

 
$
16,797

Losses charged off
(98
)
 
(50
)
 
(56
)
 
(540
)
 
(134
)
 
(87
)
 
(965
)
Recoveries
11

 
1

 
1

 
7

 
74

 
3

 
97

Provision charged to expense
(367
)
 
(80
)
 
(97
)
 
599

 
(162
)
 
107

 
—

Balance, end of period
$
6,823

 
$
981

 
$
1,857

 
$
3,295

 
$
2,541

 
$
432

 
$
15,929

 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 30, 2015
Ending allowance balance attributable to loans:

 

 

 

 

 

 

Individually evaluated for impairment
$
383

 
$
37

 
$
206

 
$
—

 
$
—

 
$
—

 
$
626

Collectively evaluated for impairment
6,440

 
944

 
1,651

 
3,295

 
2,541

 
432

 
15,303

Total ending allowance balance
$
6,823

 
$
981

 
$
1,857

 
$
3,295

 
$
2,541

 
$
432

 
$
15,929

Loans:

 

 

 

 

 

 

Individually evaluated for impairment
$
11,899

 
$
193

 
$
1,559

 
$
550

 
$
85

 
$
61

 
$
14,347

Collectively evaluated for impairment
410,852

 
76,235

 
70,021

 
127,316

 
220,783

 
14,284

 
919,491

Total ending loans balance
$
422,751

 
$
76,428

 
$
71,580

 
$
127,866

 
$
220,868

 
$
14,345

 
$
933,838


Six Months Ended June 30, 2014
 
Commercial
Real Estate
 
Commercial
 
Residential
Real Estate
 
Home
Equity
Loans
 
Indirect
 
Consumer
 
Total
Allowance for loan losses:
 
Balance, beginning of period
$
10,122

 
$
497

 
$
1,411

 
$
3,484

 
$
1,593

 
$
398

 
$
17,505

Losses charged off
(700
)
 
—

 
(150
)
 
(895
)
 
(177
)
 
(109
)
 
(2,031
)
Recoveries
21

 
2

 
6

 
19

 
97

 
18

 
163

Provision charged to expense
501

 
(23
)
 
179

 
1,181

 
20

 
(65
)
 
1,793

Balance, end of period
$
9,944

 
$
476

 
$
1,446

 
$
3,789

 
$
1,533

 
$
242

 
$
17,430

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 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
$
10,244

 
$
464

 
$
1,483

 
$
3,478

 
$
1,513

 
$
315

 
$
17,497

Losses charged off
(155
)
 
—

 
(73
)
 
(672
)
 
(108
)
 
(25
)
 
(1,033
)
Recoveries
14

 
1

 
3

 
8

 
40

 
7

 
73

Provision charged to expense
(159
)
 
11

 
33

 
975

 
88

 
(55
)
 
893

Balance, end of period
$
9,944

 
$
476

 
$
1,446

 
$
3,789

 
$
1,533

 
$
242

 
$
17,430

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2014
Ending allowance balance attributable to loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
742

 
$
51

 
$
223

 
$
—

 
$
—

 
$
—

 
$
1,016

Collectively evaluated for impairment
7,704

 
$
823

 
$
1,904

 
$
3,130

 
$
2,459

 
$
380

 
16,400

Total ending allowance balance
$
8,446

 
$
874

 
$
2,127

 
$
3,130

 
$
2,459

 
$
380

 
$
17,416

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
13,828

 
$
201

 
$
1,688

 
$
711

 
$
127

 
$
63

 
$
16,618

Collectively evaluated for impairment
411,564

 
77,324

 
69,808

 
125,218

 
216,072

 
13,421

 
913,407

Total ending loans balance
$
425,392

 
$
77,525

 
$
71,496

 
$
125,929

 
$
216,199

 
$
13,484

 
$
930,025



Year Ended December 31, 2014
 
Commercial
Real Estate
 
Commercial
 
Residential
Real Estate
 
Home
Equity
Loans
 
Indirect
 
Consumer
 
Total
 
(Dollars in thousands)
Allowance for loan losses:
 
Balance, beginning of year
$
10,122

 
$
497

 
$
1,411

 
$
3,484

 
$
1,593

 
$
398

 
$
17,505

Losses charged off
(1,407
)
 
(35
)
 
(340
)
 
(1,382
)
 
(399
)
 
(261
)
 
(3,824
)
Recoveries
261

 
33

 
7

 
76

 
214

 
31

 
622

Provision charged to expense
(530
)
 
379

 
1,049

 
952

 
1,051

 
212

 
3,113

Balance, end of year
$
8,446

 
$
874

 
$
2,127

 
$
3,130

 
$
2,459

 
$
380

 
$
17,416

Ending allowance balance attributable to loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
742

 
$
51

 
$
223

 
$
—

 
$
—

 
$
—

 
$
1,016

Collectively evaluated for impairment
7,704

 
823

 
1,904

 
3,130

 
2,459

 
380

 
16,400

Total ending allowance balance
$
8,446

 
$
874

 
$
2,127

 
$
3,130

 
$
2,459

 
$
380

 
$
17,416

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
13,828

 
$
201

 
$
1,688

 
$
711

 
$
127

 
$
63

 
$
16,618

Collectively evaluated for impairment
411,564

 
77,324

 
69,808

 
125,218

 
216,072

 
13,421

 
913,407

Total ending loans balance
$
425,392

 
$
77,525

 
$
71,496

 
$
125,929

 
$
216,199

 
$
13,484

 
$
930,025

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Age Analysis of Past Due Loans
Age Analysis of Past Due Loans as of June 30, 2015
(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
$
349

 
$
108

 
$
5,345

 
$
5,802

 
$
416,949

 
$
422,751

 
$
—

Commercial
47

 
9

 
87

 
143

 
76,285

 
76,428

 
—

Residential real estate
102

 
360

 
1,415

 
1,877

 
69,703

 
71,580

 
—

Home equity loans
384

 
42

 
1,299

 
1,725

 
126,141

 
127,866

 
—

Indirect
497

 
132

 
47

 
676

 
220,192

 
220,868

 

Consumer
77

 
13

 
222

 
312

 
14,033

 
14,345

 
—

Total
$
1,456

 
$
664

 
$
8,415

 
$
10,535

 
$
923,303

 
$
933,838

 
$
—









Age Analysis of Past Due Loans as of December 31, 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
$
3,026

 
$
5

 
$
5,857

 
$
8,888

 
$
416,504

 
$
425,392

 
$
—

Commercial
10

 
94

 
97

 
201

 
77,324

 
77,525

 
—

Residential real estate
431

 
37

 
1,481

 
1,949

 
69,547

 
71,496

 
—

Home equity loans
530

 
315

 
1,242

 
2,087

 
123,842

 
125,929

 
—

Indirect
287

 
92

 
130

 
509

 
215,690

 
216,199

 
—

Consumer
235

 
22

 
248

 
505

 
12,979

 
13,484

 
—

Total
$
4,519

 
$
565

 
$
9,055

 
$
14,139

 
$
915,886

 
$
930,025

 
$
—
Impaired Loans
Impaired loans for the period ended June 30, 2015, December 31, 2014 and June 30, 2014 are as follows:
 
 
At June 30, 2015
 
Three Months
Ended June 30, 2015
 
Six Months
Ended
June 30, 2015
 
Recorded
Investment
 
Unpaid Principal
Balance
 
Related
Allowance
 
Average Recorded
Balance
 
Average Recorded
Balance
 
(Dollars in thousands)
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial real estate
$
10,966

 
$
13,837

 
$
—

 
$
11,279

 
$
11,378

Commercial
53

 
53

 
—

 
54

 
61

Residential real estate
1,207

 
1,398

 
—

 
1,271

 
1,286

Home equity loans
550

 
1,249

 
—

 
589

 
630

Indirect
85

 
180

 
—

 
91

 
103

Consumer
61

 
61

 
—

 
63

 
63

With allowance recorded:

 

 

 
 
 
 
Commercial real estate
933

 
1,901

 
383

 
855

 
1,320

Commercial
140

 
140

 
37

 
166

 
153

Residential real estate
352

 
352

 
206

 
356

 
361

Home equity loans
—

 
—

 
—

 
—

 
—

Indirect
—

 
—

 
—

 
—

 
—

Consumer
—

 
—

 
—

 
—

 
—

Total
$
14,347

 
$
19,171

 
$
626

 
$
14,724

 
$
15,355


Note: The differences between the recorded investment and unpaid principal balance amounts represents partial charge offs.
 
At December 31, 2014
 
Recorded
Investment
 
Unpaid Principal
Balance
 
Related
Allowance
 
Average Recorded
Balance
 
(Dollars in thousands)
With no related allowance recorded:
 
 
 
 
 
 
 
Commercial real estate
$
11,578

 
$
16,320

 
$
—

 
$
12,650

Commercial
74

 
391

 
—

 
445

Residential real estate
1,316

 
1,457

 
—

 
1,241

Home equity loans
711

 
1,408

 
—

 
874

Indirect
127

 
235

 
—

 
158

Consumer
63

 
63

 
—

 
64

With allowance recorded:
 
 
 
 
 
 
 
Commercial real estate
2,250

 
2,256

 
742

 
2,903

Commercial
127

 
127

 
51

 
169

Residential real estate
372

 
372

 
223

 
148

Home equity loans
—

 
—

 
—

 
—

Indirect
—

 
—

 
—

 
—

Consumer
—

 
—

 
—

 
—

Total
$
16,618

 
$
22,629

 
$
1,016

 
$
18,652

Note: The differences between the recorded investment and unpaid principal balance amounts represents partial charge offs.
 
At June 30, 2014
 
Three Months
Ended
June 30, 2014
 
Six Months
Ended
June 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
$
13,276

 
$
18,712

 
$
—

 
$
12,894

 
$
13,772

Commercial
1,353

 
1,577

 
—

 
778

 
590

Residential real estate
1,237

 
1,439

 
—

 
1,235

 
1,401

Home equity loans
953

 
1,535

 
—

 
967

 
1,015

Indirect
165

 
231

 
—

 
178

 
183

Consumer
64

 
103

 
—

 
65

 
97

With allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial real estate
2,917

 
3,907

 
772

 
3,290

 
2,964

Commercial
293

 
293

 
85

 
275

 
269

Residential real estate
—

 
—

 
—

 
11

 
7

Home equity loans
—

 
—

 
—

 
—

 
—

Indirect
—

 
—

 
—

 
—

 
—

Consumer
—

 
—

 
—

 
—

 
—

Total
$
20,258

 
$
27,797

 
$
857

 
$
19,693

 
$
20,298

*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 summarizes the number of loans modified as a TDR and the recorded investment and unpaid principal balance by loan segment as of June 30, 2015 and June 30, 2014.
 
Three Months Ended As of June 30, 2015
 
Six Months Ended As of June 30, 2015
 
(Dollars in thousands)
 
Number of Contracts
 
Recorded Investment
 
Unpaid Principal
 
Number of Contracts
 
Recorded Investment
 
Unpaid Principal
Commercial real estate
—
 
$—
 
$—
 
2
 
$624
 
$624
Total
—
 
$—
 
$—
 
2
 
$624
 
$624

Note: The differences between the recorded investment and unpaid principal balance amounts represents partial charge offs.
Loans on Nonaccrual Status
Nonaccrual loan balances at June 30, 2015 and December 31, 2014 are as follows:
 
Loans On Nonaccrual Status
June 30,
2015
 
December 31,
2014
 
(Dollars in thousands)
Commercial real estate
$
7,408

 
$
7,884

Commercial
193

 
189

Residential real estate
3,488

 
3,803

Home equity loans
3,771

 
3,900

Indirect
568

 
475

Consumer
253

 
327

Total Nonaccrual Loans
$
15,681

 
$
16,578
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 June 30, 2015 and December 31, 2014:
Commercial
Credit Exposure
Commercial
Real Estate
 
Commercial
 
Residential
Real
Estate*
 
Home
Equity
Loans
 
Indirect
 
Consumer
 
Total
June 30, 2015
 
(Dollars in thousands)
Loans graded by internal credit risk grade:
 
 
 
 
 
 
 
 
 
 
 
 
 
Grade 1 — Minimal
$
—

 
$
10

 
$
—

 
$
—

 
$
—

 
$
—

 
$
10

Grade 2 — Modest
600

 
4,861

 
—

 
—

 
—

 
—

 
5,461

Grade 3 — Better than average
7,035

 
2,406

 
—

 
—

 
—

 
—

 
9,441

Grade 4 — Average
339,190

 
62,403

 
3,730

 
—

 
—

 
—

 
405,323

Grade 5 — Acceptable
60,914

 
2,799

 
312

 
—

 
—

 
—

 
64,025

Total Pass Credits
407,739

 
72,479

 
4,042

 
—

 
—

 
—

 
484,260

Grade 6 — Special mention
3,111

 
3,756

 
23

 
—

 
—

 
—

 
6,890

Grade 7 — Substandard
11,901

 
193

 
1,021

 
—

 
—

 
—

 
13,115

Grade 8 — Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

Grade 9 — Loss
—

 
—

 
—

 
—

 
—

 
—

 
—

Total loans internally credit risk graded
422,751

 
76,428

 
5,086

 
—

 
—

 
—

 
504,265

Loans not monitored by internal risk grade:

 

 

 

 

 

 

Current loans not internally risk graded
—

 
—

 
65,104

 
126,141

 
220,192

 
14,033

 
425,470

30-59 days past due loans not internally risk graded
—

 
—

 
102

 
384

 
497

 
77

 
1,060

60-89 days past due loans not internally risk graded
—

 
—

 
167

 
42

 
132

 
13

 
354

90+ days past due loans not internally risk graded
—

 
—

 
1,121

 
1,299

 
47

 
222

 
2,689

Total loans not internally credit risk graded
—

 
—

 
66,494

 
127,866

 
220,868

 
14,345

 
429,573

Total loans internally and not internally credit risk graded
$
422,751

 
$
76,428

 
$
71,580

 
$
127,866

 
$
220,868

 
$
14,345

 
$
933,838

 
*
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, 2014
 
(Dollars in thousands)
Loans graded by internal credit risk grade:

 

 

 

 

 

 

Grade 1 — Minimal
$
—

 
$
66

 
$
—

 
$
—

 
$
—

 
$
—

 
$
66

Grade 2 — Modest
600

 
4,521

 
—

 
—

 
—

 
—

 
5,121

Grade 3 — Better than average
8,576

 
117

 
—

 
—

 
—

 
—

 
8,693

Grade 4 — Average
301,225

 
60,074

 
3,249

 
—

 
—

 
—

 
364,548

Grade 5 — Acceptable
94,536

 
8,395

 
2,007

 
—

 
—

 
—

 
104,938

Total Pass Credits
404,937

 
73,173

 
5,256

 
—

 
—

 
—

 
483,366

Grade 6 — Special mention
2,365

 
4,163

 
26

 
—

 
—

 
—

 
6,554

Grade 7 — Substandard
18,090

 
189

 
1,067

 
—

 
—

 
—

 
19,346

Grade 8 — Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

Grade 9 — Loss
—

 
—

 
—

 
—

 
—

 
—

 
—

Total loans internally credit risk graded
425,392

 
77,525

 
6,349

 
—

 
—

 
—

 
509,266

Loans not monitored by internal risk grade:

 

 

 

 

 

 

Current loans not internally risk graded
—

 
—

 
63,643

 
123,842

 
215,690

 
12,979

 
416,154

30-59 days past due loans not internally risk graded
—

 
—

 
230

 
530

 
287

 
235

 
1,282

60-89 days past due loans not internally risk graded
—

 
—

 
37

 
315

 
92

 
22

 
466

90+ days past due loans not internally risk graded
—

 
—

 
1,237

 
1,242

 
130

 
248

 
2,857

Total loans not internally credit risk graded
—

 
—

 
65,147

 
125,929

 
216,199

 
13,484

 
420,759

Total loans internally and not internally credit risk graded
$
425,392

 
$
77,525

 
$
71,496

 
$
125,929

 
$
216,199

 
$
13,484

 
$
930,025

 * 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.