Loans (Tables)

6 Months Ended

Jun. 30, 2012

The following is a summary of loans:



(Dollars in thousands)	June 30, 2012				December 31, 2011
	Amount		%		Amount		%
Commercial:
Mortgages (1)		$664,410	30	%		$624,813	29	%
Construction and development (2)	17,365		1		10,955		1
Other (3)	510,220		23		488,860		22
Total commercial	1,191,995		54		1,124,628		52
Residential real estate:
Mortgages (4)	680,772		31		678,582		32
Homeowner construction	21,247		1		21,832		1
Total residential real estate	702,019		32		700,414		33
Consumer:
Home equity lines (5)	224,550		10		223,430		10
Home equity loans (5)	40,690		2		43,121		2
Other (6)	54,588		2		55,566		3
Total consumer	319,828		14		322,117		15
Total loans (7)		$2,213,842	100	%		$2,147,159	100	%


(1)	Amortizing mortgages and lines of credit, primarily secured by income producing property. As of June 30, 2012 and December 31, 2011, $99.2 million and $107.1 million, respectively, of these loans were pledged as collateral for FHLBB borrowings (see Note 8).


(2)	Loans for construction of residential and commercial properties and for land development.

(3)

Loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate. As of June 30, 2012, $24.3 million and $36.3 million, respectively, of these loans were pledged as collateral for FHLBB borrowings and were collateralized for the discount window at the Federal Reserve Bank. Comparable amounts for December 31, 2011 were $27.2 million and $42.1 million, respectively (see Note 8).


(4)	As of June 30, 2012 and December 31, 2011, $598.3 million and $611.8 million, respectively, of these loans were pledged as collateral for FHLBB borrowings (see Note 8).


(5)	As of June 30, 2012 and December 31, 2011, $190.1 million and $165.4 million, respectively, of these loans were pledged as collateral for FHLBB borrowings (see Note 8).


(6)	Fixed-rate consumer installment loans.


(7)	Includes net unamortized loan origination costs of $6 thousand and $31 thousand, respectively, and net unamortized premiums on purchased loans of $58 thousand and $67 thousand, respectively, at June 30, 2012 and December 31, 2011.

Nonaccrual Loans

The following is a summary of nonaccrual loans, segregated by class of loans, as of the dates indicated:



(Dollars in thousands)	Jun 30, 2012		Dec 31, 2011
Commercial:
Mortgages		$2,597		$5,709
Construction and development	—		—
Other	3,405		3,708
Residential real estate:
Mortgages	8,659		10,614
Homeowner construction	—		—
Consumer:
Home equity lines	695		718
Home equity loans	371		335
Other	15		153
Total nonaccrual loans		$15,742		$21,237
Accruing loans 90 days or more past due		$—		$—

As of June 30, 2012 and December 31, 2011, nonaccrual loans of $3.0 million and $3.6 million, respectively, were current as to the payment of principal and interest.

Past Due Loans

Past due status is based on the contractual payment terms of the loan. The following tables present an age analysis of past due loans, segregated by class of loans, as of the dates indicated:



(Dollars in thousands)	Days Past Due
June 30, 2012	30-59		60-89		Over 90		Total Past Due		Current		Total Loans
Commercial:
Mortgages		$411		$233		$2,339		$2,983		$661,427		$664,410
Construction and development	—		—		—		—		17,365		17,365
Other	849		434		1,714		2,997		507,223		510,220
Residential real estate:
Mortgages	4,969		1,600		4,039		10,608		670,164		680,772
Homeowner construction	—		—		—		—		21,247		21,247
Consumer:
Home equity lines	1,996		548		139		2,683		221,867		224,550
Home equity loans	482		114		223		819		39,871		40,690
Other	182		15		—		197		54,391		54,588
Total loans		$8,889		$2,944		$8,454		$20,287		$2,193,555		$2,213,842



(Dollars in thousands)	Days Past Due
December 31, 2011	30-59		60-89		Over 90		Total Past Due		Current		Total Loans
Commercial:
Mortgages		$1,621		$315		$4,995		$6,931		$617,882		$624,813
Construction and development	—		—		—		—		10,955		10,955
Other	3,760		982		633		5,375		483,485		488,860
Residential real estate:
Mortgages	3,969		1,505		6,283		11,757		666,825		678,582
Homeowner construction	—		—		—		—		21,832		21,832
Consumer:
Home equity lines	645		210		525		1,380		222,050		223,430
Home equity loans	362		46		202		610		42,511		43,121
Other	66		7		147		220		55,346		55,566
Total loans		$10,423		$3,065		$12,785		$26,273		$2,120,886		$2,147,159

Included in past due loans as of June 30, 2012 and December 31, 2011, were nonaccrual loans of $12.7 million and $17.6 million, respectively.

Impaired Loans

The following is a summary of impaired loans, as of the dates indicated:



(Dollars in thousands)	Recorded Investment (1)				Unpaid Principal				Related Allowance
	Jun 30, 2012		Dec 31, 2011		Jun 30, 2012		Dec 31, 2011		Jun 30, 2012		Dec 31, 2011
No Related Allowance Recorded:
Commercial:
Mortgages		$1,158		$7,093		$1,155		$7,076		$—		$—
Construction and development	—		—		—		—		—		—
Other	2,681		1,622		2,677		1,620		—		—
Residential real estate:
Mortgages	1,224		2,383		1,605		2,471		—		—
Homeowner construction	—		—		—		—		—		—
Consumer:
Home equity lines	—		—		—		—		—		—
Home equity loans	—		—		—		—		—		—
Other	—		—		—		—		—		—
Subtotal		$5,063		$11,098		$5,437		$11,167		$—		$—
With Related Allowance Recorded:
Commercial:
Mortgages		$2,696		$5,023		$3,901		$6,760		$204		$329
Construction and development	—		—		—		—		—		—
Other	7,651		8,739		8,250		9,740		523		839
Residential real estate:
Mortgages	3,003		3,606		3,246		4,138		582		495
Homeowner construction	—		—		—		—		—		—
Consumer:
Home equity lines	105		278		172		373		—		82
Home equity loans	123		130		147		153		1		1
Other	139		205		140		227		1		69
Subtotal		$13,717		$17,981		$15,856		$21,391		$1,311		$1,815
Total impaired loans		$18,780		$29,079		$21,293		$32,558		$1,311		$1,815
Total:
Commercial		$14,186		$22,477		$15,983		$25,196		$727		$1,168
Residential real estate	4,227		5,989		4,851		6,609		582		495
Consumer	367		613		459		753		2		152
Total impaired loans		$18,780		$29,079		$21,293		$32,558		$1,311		$1,815

(1)

The recorded investment in impaired loans consists of unpaid principal balance, net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs. For impaired accruing loans (including those troubled debt restructurings for which management has concluded that the collectibility of the loan is not in doubt), the recorded investment also includes accrued interest. As of June 30, 2012 and December 31, 2011, recorded investment in impaired loans included accrued interest of $17 thousand and $46 thousand, respectively.

The following tables present the average recorded investment and interest income recognized on impaired loans segregated by loan class for the periods indicated:



(Dollars in thousands)	Average Recorded Investment				Interest Income Recognized
Three months ended June 30,	2012		2011		2012		2011
Commercial:
Mortgages		$5,773		$15,231		$35		$149
Construction and development	—		—		—		—
Other	11,257		8,564		84		117
Residential real estate:
Mortgages	4,743		6,114		18		46
Homeowner construction	—		—		—		—
Consumer:
Home equity lines	138		96		—		2
Home equity loans	125		396		3		5
Other	143		260		3		4
Totals		$22,179		$30,661		$143		$323



(Dollars in thousands)	Average Recorded Investment				Interest Income Recognized
Six months ended June 30,	2012		2011		2012		2011
Commercial:
Mortgages		$8,382		$16,682		$105		$322
Construction and development	—		—		—		—
Other	11,049		10,014		158		211
Residential real estate:
Mortgages	5,102		5,574		45		90
Homeowner construction	—		—		—		—
Consumer:
Home equity lines	191		101		1		3
Home equity loans	148		427		4		11
Other	154		231		5		8
Totals		$25,026		$33,029		$318		$645

At June 30, 2012, there were no significant commitments to lend additional funds to borrowers whose loans were on nonaccrual status or had been restructured.

Troubled Debt Restructurings

The following table presents loans modified as a troubled debt restructuring during the three months ended June 30, 2012 and 2011.



(Dollars in thousands)			Outstanding Recorded Investment (1)
	# of Loans		Pre-Modifications				Post-Modifications
Three months ended June 30,	2012	2011	2012		2011		2012		2011
Commercial:
Mortgages	1	—		$197		$—		$197		$—
Other	2	2	375		561		375		561
Residential real estate:
Mortgages	2	2	651		427		651		427
Totals	5	4		$1,223		$988		$1,223		$988


(1)	The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs, at the time of the restructuring. For accruing troubled debt restructurings the recorded investment also includes accrued interest.

The following table presents loans modified as a troubled debt restructuring during the six months ended June 30, 2012 and 2011.



(Dollars in thousands)			Outstanding Recorded Investment (1)
	# of Loans		Pre-Modifications				Post-Modifications
Six months ended June 30,	2012	2011	2012		2011		2012		2011
Commercial:
Mortgages	3	2		$861		$215		$861		$215
Other	7	7	1,625		1,292		1,625		1,292
Residential real estate:
Mortgages	2	5	651		1,310		651		1,310
Consumer:
Other	2	1	5		117		5		117
Totals	14	15		$3,142		$2,934		$3,142		$2,934


(1)	The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs, at the time of the restructuring. For accruing troubled debt restructurings the recorded investment also includes accrued interest.

Troubled Debt Restructurings Type of Modification

The following table provides information on how loans were modified as a troubled debt restructuring during the three and six months ended June 30, 2012 and 2011.



(Dollars in thousands)
	Three Months				Six Months
Periods ended June 30,	2012		2011		2012		2011
Payment deferral		$240		$988		$240		$1,926
Maturity / amortization concession	24		—		917		667
Interest only payments	—		—		361		15
Below market interest rate concession	761		—		1,426		—
Combination (1)	198		—		198		326
Total		$1,223		$988		$3,142		$2,934


(1)	Loans included in this classification had a combination of any two of the concessions included in this table.

Troubled Debt Restructurings Subsequent Default

The following tables present loans modified in a troubled debt restructuring within the previous twelve months for which there was a payment default during the three and six months ended June 30, 2012 and 2011.



(Dollars in thousands)	# of Loans		Recorded Investment (1)
Three months ended June 30,	2012	2011	2012		2011
Commercial:
Mortgages	1	2		$197		$196
Other	2	7	52		341
Residential real estate:
Mortgages	1	3	495		1,206
Consumer:
Other	1	—	12		—
Totals	5	12		$756		$1,743


(1)	The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs. For accruing troubled debt restructurings the recorded investment also includes accrued interest.



(Dollars in thousands)	# of Loans		Recorded Investment (1)
Six months ended June 30,	2012	2011	2012		2011
Commercial:
Mortgages	1	2		$197		$196
Other	2	8	52		395
Residential real estate:
Mortgages	1	5	495		1,596
Consumer:
Other	1	—	12		—
Totals	5	15		$756		$2,187


(1)	The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs. For accruing troubled debt restructurings the recorded investment also includes accrued interest.

Credit Quality Indicators - Commercial

The following table presents the commercial loan portfolio, segregated by category of credit quality indicator:



(Dollars in thousands)	Pass				Special Mention				Classified
	Jun 30, 2012		Dec 31, 2011		Jun 30, 2012		Dec 31, 2011		Jun 30, 2012		Dec 31, 2011
Mortgages		$626,603		$583,162		$25,182		$29,759		$12,625		$11,892
Construction and development	17,365		10,955		—		—		—		—
Other	480,782		455,577		22,589		22,731		6,849		10,552
Total commercial loans		$1,124,750		$1,049,694		$47,771		$52,490		$19,474		$22,444

Credit Quality Indicators Residential & Consumer

The following table presents the residential and consumer loan portfolios, segregated by category of credit quality indicator:



(Dollars in thousands)	Under 90 Days Past Due				Over 90 Days Past Due
	Jun 30, 2012		Dec 31, 2011		Jun 30, 2012		Dec 31, 2011
Residential Real Estate:
Accruing mortgages		$672,113		$667,968		$—		$—
Nonaccrual mortgages	4,620		4,331		4,039		6,283
Homeowner construction	21,247		21,832		—		—
Total residential real estate loans		$697,980		$694,131		$4,039		$6,283
Consumer:
Home equity lines		$224,411		$222,905		$139		$525
Home equity loans	40,467		42,919		223		202
Other	54,588		55,419		—		147
Total consumer loans		$319,466		$321,243		$362		$874