Loans (Tables)

3 Months Ended

Mar. 31, 2013

The following is a summary of loans:



(Dollars in thousands)	March 31, 2013				December 31, 2012
	Amount		%		Amount		%
Commercial:
Mortgages (1)		$729,968	31	%		$710,813	31	%
Construction and development (2)	34,179		2		27,842		1
Other (3)	513,000		22		513,764		23
Total commercial	1,277,147		55		1,252,419		55
Residential real estate:
Mortgages (4)	702,418		30		692,798		30
Homeowner construction	21,943		1		24,883		1
Total residential real estate	724,361		31		717,681		31
Consumer:
Home equity lines (5)	226,640		10		226,861		10
Home equity loans (5)	40,134		2		39,329		2
Other (6)	56,763		2		57,713		2
Total consumer	323,537		14		323,903		14
Total loans (7)		$2,325,045	100	%		$2,294,003	100	%


(1)	Amortizing mortgages and lines of credit, primarily secured by income producing property. As of March 31, 2013 and December 31, 2012, $230.7 million and $238.6 million, respectively, were pledged as collateral for FHLBB borrowings.


(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 March 31, 2013, $49.8 million and $24.7 million, respectively, were pledged as collateral for FHLBB borrowings and were collateralized for the discount window at the Federal Reserve Bank. Comparable amounts for December 31, 2012 were $51.8 million and $29.5 million, respectively.


(4)	As of March 31, 2013 and December 31, 2012, $631.7 million and $627.4 million, respectively, were pledged as collateral for FHLBB borrowings.


(5)	As of March 31, 2013 and December 31, 2012, $190.1 million and $189.4 million, respectively, were pledged as collateral for FHLBB borrowings.


(6)	Fixed-rate consumer installment loans.


(7)	Includes net unamortized loan origination costs of $56 thousand and $39 thousand, respectively, and net unamortized premiums on purchased loans of $42 thousand and $83 thousand, respectively, at March 31, 2013 and December 31, 2012.

Nonaccrual Loans

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



(Dollars in thousands)	Mar 31, 2013		Dec 31, 2012
Commercial:
Mortgages		$14,953		$10,681
Construction and development	—		—
Other	3,122		4,412
Residential real estate:
Mortgages	6,699		6,158
Homeowner construction	—		—
Consumer:
Home equity lines	406		840
Home equity loans	431		371
Other	64		81
Total nonaccrual loans		$25,675		$22,543
Accruing loans 90 days or more past due		$—		$—

As of March 31, 2013 and December 31, 2012, nonaccrual loans of $6.7 million and $1.6 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
March 31, 2013	30-59		60-89		Over 90		Total Past Due		Current		Total Loans
Commercial:
Mortgages		$—		$193		$9,852		$10,045		$719,923		$729,968
Construction and development	—		—		—		—		34,179		34,179
Other	689		341		2,961		3,991		509,009		513,000
Residential real estate:
Mortgages	3,891		1,451		4,327		9,669		692,749		702,418
Homeowner construction	—		—		—		—		21,943		21,943
Consumer:
Home equity lines	872		115		190		1,177		225,463		226,640
Home equity loans	538		346		243		1,127		39,007		40,134
Other	124		—		51		175		56,588		56,763
Total loans		$6,114		$2,446		$17,624		$26,184		$2,298,861		$2,325,045



(Dollars in thousands)	Days Past Due
December 31, 2012	30-59		60-89		Over 90		Total Past Due		Current		Total Loans
Commercial:
Mortgages		$373		$408		$10,300		$11,081		$699,732		$710,813
Construction and development	—		—		—		—		27,842		27,842
Other	260		296		3,647		4,203		509,561		513,764
Residential real estate:
Mortgages	4,840		1,951		3,658		10,449		682,349		692,798
Homeowner construction	—		—		—		—		24,883		24,883
Consumer:
Home equity lines	753		207		528		1,488		225,373		226,861
Home equity loans	252		114		250		616		38,713		39,329
Other	129		64		66		259		57,454		57,713
Total loans		$6,607		$3,040		$18,449		$28,096		$2,265,907		$2,294,003

Included in past due loans as of March 31, 2013 and December 31, 2012, were nonaccrual loans of $19.0 million and $21.0 million, respectively. All loans 90 days or more past due at March 31, 2013 and December 31, 2012 were classified as nonaccrual loans.

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
	Mar 31, 2013		Dec 31, 2012		Mar 31, 2013		Dec 31, 2012		Mar 31, 2013		Dec 31, 2012
No Related Allowance Recorded:
Commercial:
Mortgages		$1,529		$2,357		$1,531		$2,360		$—		$—
Construction and development	—		—		—		—		—		—
Other	1,469		1,058		1,467		1,057		—		—
Residential real estate:
Mortgages	578		1,294		593		1,315		—		—
Homeowner construction	—		—		—		—		—		—
Consumer:
Home equity lines	—		—		—		—		—		—
Home equity loans	—		—		—		—		—		—
Other	—		—		—		—		—		—
Subtotal		$3,576		$4,709		$3,591		$4,732		$—		$—
With Related Allowance Recorded:
Commercial:
Mortgages		$23,056		$17,897		$24,893		$19,738		$3,609		$1,720
Construction and development	—		—		—		—		—		—
Other	8,218		9,939		8,533		10,690		683		694
Residential real estate:
Mortgages	4,061		2,576		4,435		2,947		701		463
Homeowner construction	—		—		—		—		—		—
Consumer:
Home equity lines	174		187		174		255		1		1
Home equity loans	61		117		61		160		—		—
Other	165		137		236		136		32		2
Subtotal		$35,735		$30,853		$38,332		$33,926		$5,026		$2,880
Total impaired loans		$39,311		$35,562		$41,923		$38,658		$5,026		$2,880
Total:
Commercial		$34,272		$31,251		$36,424		$33,845		$4,292		$2,414
Residential real estate	4,639		3,870		5,028		4,262		701		463
Consumer	400		441		471		551		33		3
Total impaired loans		$39,311		$35,562		$41,923		$38,658		$5,026		$2,880

(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 (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.

The following table presents 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 March 31,	2013		2012		2013		2012
Commercial:
Mortgages		$20,903		$10,991		$100		$70
Construction and development	—		—		—		—
Other	10,635		10,841		64		74
Residential real estate:
Mortgages	4,000		5,461		22		27
Homeowner construction	—		—		—		—
Consumer:
Home equity lines	263		243		3		1
Home equity loans	105		170		3		1
Other	163		166		2		2
Totals	36,069		27,872		194		175

At March 31, 2013, 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 periods indicated:



(Dollars in thousands)			Outstanding Recorded Investment (1)
	# of Loans		Pre-Modifications				Post-Modifications
Three months ended March 31,	2013	2012	2013		2012		2013		2012
Commercial:
Mortgages	2	2		$452		$664		$372		$664
Construction and development	—	—	—		—		—		—
Other	—	5	—		1,250		—		1,250
Residential real estate:
Mortgages	—	—	—		—		—		—
Homeowner construction	—	—	—		—		—		—
Consumer:
Home equity lines	1	—	92		—		92		—
Home equity loans	—	—	—		—		—		—
Other	—	2	—		5		—		5
Totals	3	9		$544		$1,919		$464		$1,919


(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 restructured loans, 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 periods indicated.



(Dollars in thousands)
Three months ended March 31,	2013		2012
Payment deferral		$—		$—
Maturity / amortization concession	—		893
Interest only payments	92		361
Below market interest rate concession	314		665
Combination (1)	138		—
Total		$544		$1,919


(1)	Loans included in this classification were modified with a combination of any two of the concessions listed 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 month periods indicated:



(Dollars in thousands)	# of Loans		Recorded Investment (1)
Three months ended March 31,	2013	2012	2013		2012
Commercial:
Mortgages	1	—		$235		$—
Construction and development	—	—	—		—
Other	—	1	—		8
Residential real estate:
Mortgages	—	—	—		—
Homeowner construction	—	—	—		—
Consumer:
Home equity lines	1	—	32		—
Home equity loans	—	—	—		—
Other	—	—	—		—
Totals	2	1		$267		$8


(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 restructured loans, 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
	Mar 31, 2013		Dec 31, 2012		Mar 31, 2013		Dec 31, 2012		Mar 31, 2013		Dec 31, 2012
Mortgages		$690,052		$669,220		$20,920		$21,649		$18,996		$19,944
Construction and development	34,179		27,842		—		—		—		—
Other	481,404		483,371		27,491		24,393		4,105		6,000
Total commercial loans		$1,205,635		$1,180,433		$48,411		$46,042		$23,101		$25,944

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
	Mar 31, 2013		Dec 31, 2012		Mar 31, 2013		Dec 31, 2012
Residential Real Estate:
Accruing mortgages		$695,719		$686,640		$—		$—
Nonaccrual mortgages	2,372		2,500		4,327		3,658
Homeowner construction	21,943		24,883		—		—
Total residential real estate loans		$720,034		$714,023		$4,327		$3,658
Consumer:
Home equity lines		$226,450		$226,333		$190		$528
Home equity loans	39,891		39,078		243		251
Other	56,712		57,648		51		65
Total consumer loans		$323,053		$323,059		$484		$844