Loans (Tables)

6 Months Ended

Jun. 30, 2013

Receivables [Abstract]

Summary of Loans

The following is a summary of loans:

(Dollars in thousands)	June 30, 2013				December 31, 2012
	Amount		%		Amount		%
Commercial:
Mortgages (1)		$758,437	32	%		$710,813	31	%
Construction and development (2)	39,449		2		27,842		1
Other (3)	512,228		21		513,764		23
Total commercial	1,310,114		55		1,252,419		55
Residential real estate:
Mortgages (4)	728,158		30		692,798		30
Homeowner construction	20,713		1		24,883		1
Total residential real estate	748,871		31		717,681		31
Consumer:
Home equity lines (5)	228,367		10		226,861		10
Home equity loans (5)	41,312		2		39,329		2
Other (6)	56,316		2		57,713		2
Total consumer	325,995		14		323,903		14
Total loans (7)		$2,384,980	100	%		$2,294,003	100	%

(1) Amortizing mortgages and lines of credit, primarily secured by income producing property. As of June 30, 2013 and December 31, 2012, $213.9 million and $238.6 million, respectively, were pledged as collateral for FHLBB borrowings and letters of credit.

(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, 2013, $48.1 million and $24.9 million, respectively, were pledged as collateral for FHLBB borrowings and letters of credit 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 June 30, 2013 and December 31, 2012, $658.6 million and $627.4 million, respectively, were pledged as collateral for FHLBB borrowings and letters of credit.

(5) As of June 30, 2013 and December 31, 2012, $190.8 million and $189.4 million, respectively, were pledged as collateral for FHLBB borrowings and letters of credit.

(6) Fixed-rate consumer installment loans.

(7) Includes net unamortized loan origination costs of $439 thousand and $39 thousand, respectively, and net unamortized premiums on purchased loans of $97 thousand and $83 thousand, respectively, at June 30, 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)	Jun 30, 2013		Dec 31, 2012
Commercial:
Mortgages		$9,976		$10,681
Construction and development	—		—
Other	1,400		4,412
Residential real estate:
Mortgages	7,526		6,158
Homeowner construction	—		—
Consumer:
Home equity lines	325		840
Home equity loans	775		371
Other	24		81
Total nonaccrual loans		$20,026		$22,543
Accruing loans 90 days or more past due		$2,431		$—

As of June 30, 2013 and December 31, 2012, nonaccrual loans of $2.8 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
June 30, 2013	30-59		60-89		Over 90		Total Past Due		Current		Total Loans
Commercial:
Mortgages		$—		$536		$8,895		$9,431		$749,006		$758,437
Construction and development	—		—		—		—		39,449		39,449
Other	505		34		3,428		3,967		508,261		512,228
Residential real estate:
Mortgages	4,051		1,697		4,266		10,014		718,144		728,158
Homeowner construction	—		—		—		—		20,713		20,713
Consumer:
Home equity lines	1,155		205		27		1,387		226,980		228,367
Home equity loans	402		451		375		1,228		40,084		41,312
Other	31		33		13		77		56,239		56,316
Total loans		$6,144		$2,956		$17,004		$26,104		$2,358,876		$2,384,980

(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 June 30, 2013 and December 31, 2012, were nonaccrual loans of $17.2 million and $21.0 million, respectively. Accruing loans 90 days or more past due amounted to 2.4 million at June 30, 2013, consisting of one well-secured commercial and industrial loan. This loan was current with respect to interest payments; however, it was past maturity. This loan was renewed in July of 2013 and is no longer past due. All loans 90 days or more past due at December 31, 2012 were classified as nonaccrual.

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, 2013		Dec 31, 2012		Jun 30, 2013		Dec 31, 2012		Jun 30, 2013		Dec 31, 2012
No Related Allowance Recorded:
Commercial:
Mortgages		$3,399		$2,357		$7,421		$2,360		$—		$—
Construction and development	—		—		—		—		—		—
Other	2,621		1,058		2,620		1,057		—		—
Residential real estate:
Mortgages	329		1,294		345		1,315		—		—
Homeowner construction	—		—		—		—		—		—
Consumer:
Home equity lines	—		—		—		—		—		—
Home equity loans	—		—		—		—		—		—
Other	—		—		—		—		—		—
Subtotal		$6,349		$4,709		$10,386		$4,732		$—		$—
With Related Allowance Recorded:
Commercial:
Mortgages		$25,647		$17,897		$26,716		$19,738		$1,121		$1,720
Construction and development	—		—		—		—		—		—
Other	1,385		9,939		1,749		10,690		349		694
Residential real estate:
Mortgages	3,533		2,576		3,909		2,947		638		463
Homeowner construction	—		—		—		—		—		—
Consumer:
Home equity lines	173		187		174		255		1		1
Home equity loans	60		117		59		160		16		—
Other	131		137		133		136		1		2
Subtotal		$30,929		$30,853		$32,740		$33,926		$2,126		$2,880
Total impaired loans		$37,278		$35,562		$43,126		$38,658		$2,126		$2,880
Total:
Commercial		$33,052		$31,251		$38,506		$33,845		$1,470		$2,414
Residential real estate	3,862		3,870		4,254		4,262		638		463
Consumer	364		441		366		551		18		3
Total impaired loans		$37,278		$35,562		$43,126		$38,658		$2,126		$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 June 30,	2013		2012		2013		2012
Commercial:
Mortgages		$27,904		$5,773		$152		$35
Construction and development	—		—		—		—
Other	7,385		11,257		50		84
Residential real estate:
Mortgages	4,496		4,743		27		18
Homeowner construction	—		—		—		—
Consumer:
Home equity lines	191		138		1		—
Home equity loans	69		125		1		3
Other	144		143		2		3
Totals		$40,189		$22,179		$233		$143

(Dollars in thousands)	Average Recorded Investment				Interest Income Recognized
Six months ended June 30,	2013		2012		2013		2012
Commercial:
Mortgages		$24,423		$8,382		$252		$105
Construction and development	—		—		—		—
Other	9,001		11,049		114		158
Residential real estate:
Mortgages	4,250		5,102		49		45
Homeowner construction	—		—		—		—
Consumer:
Home equity lines	227		191		4		1
Home equity loans	87		148		4		4
Other	153		154		4		5
Totals		$38,141		$25,026		$427		$318

At June 30, 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 tables present 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 June 30,	2013	2012	2013		2012		2013		2012
Commercial:
Mortgages	3	1		$9,504		$197		$9,504		$197
Construction and development	—	—	—		—		—		—
Other	5	2	1,168		375		1,168		375
Residential real estate:
Mortgages	—	2	—		651		—		651
Homeowner construction	—	—	—		—		—		—
Consumer:
Home equity lines	—	—	—		—		—		—
Home equity loans	—	—	—		—		—		—
Other	—	—	—		—		—		—
Totals	8	5		$10,672		$1,223		$10,672		$1,223

(Dollars in thousands)			Outstanding Recorded Investment (1)
	# of Loans		Pre-Modifications				Post-Modifications
Six months ended June 30,	2013	2012	2013		2012		2013		2012
Commercial:
Mortgages	5	3		$9,956		$861		$9,876		$861
Construction and development	—	—	—		—		—		—
Other	5	7	1,168		1,625		1,168		1,625
Residential real estate:
Mortgages	—	2	—		651		—		651
Homeowner construction	—	—	—		—		—		—
Consumer:
Home equity lines	1	—	92		—		92		—
Home equity loans	—	—	—		—		—		—
Other	—	2	—		5		—		5
Totals	11	14		$11,216		$3,142		$11,136		$3,142

(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				Six months
Periods ended June 30,	2013		2012		2013		2012
Payment deferral		$—		$240		$—		$240
Maturity / amortization concession	—		24		—		917
Interest only payments	323		—		415		361
Below market interest rate concession	9,504		761		9,818		1,426
Combination(1)	845		198		983		198
Total		$10,672		$1,223		$11,216		$3,142

(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 periods indicated:

(Dollars in thousands)	# of Loans		Recorded Investment (1)
Three months ended June 30,	2013	2012	2013		2012
Commercial:
Mortgages	1	1		$482		$197
Construction and development	—	—	—		—
Other	—	2	—		52
Residential real estate:
Mortgages	—	1	—		495
Homeowner construction	—	—	—		—
Consumer:
Home equity lines	—	—	—		—
Home equity loans	—	—	—		—
Other	—	1	—		12
Totals	1	5		$482		$756

(Dollars in thousands)	# of Loans		Recorded Investment (1)
Six months ended June 30,	2013	2012	2013		2012
Commercial:
Mortgages	2	1		$717		$197
Construction and development	—	—	—		—
Other	—	2	—		52
Residential real estate:
Mortgages	—	1	—		495
Homeowner construction	—	—	—		—
Consumer:
Home equity lines	—	—	—		—
Home equity loans	1	—	32		—
Other	—	1	—		12
Totals	3	5		$749		$756

(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
	Jun 30, 2013		Dec 31, 2012		Jun 30, 2013		Dec 31, 2012		Jun 30, 2013		Dec 31, 2012
Mortgages		$725,186		$669,220		$19,406		$21,649		$13,845		$19,944
Construction and development	39,449		27,842		—		—		—		—
Other	490,285		483,371		19,401		24,393		2,542		6,000
Total commercial loans		$1,254,920		$1,180,433		$38,807		$46,042		$16,387		$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
	Jun 30, 2013		Dec 31, 2012		Jun 30, 2013		Dec 31, 2012
Residential Real Estate:
Accruing mortgages		$720,632		$686,640		$—		$—
Nonaccrual mortgages	3,260		2,500		4,266		3,658
Homeowner construction	20,713		24,883		—		—
Total residential real estate loans		$744,605		$714,023		$4,266		$3,658
Consumer:
Home equity lines		$228,340		$226,333		$27		$528
Home equity loans	40,937		39,078		375		251
Other	56,303		57,648		13		65
Total consumer loans		$325,580		$323,059		$415		$844