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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 6 Months Ended
Jun. 30, 2013
Loans and Leases Receivable Disclosure [Abstract]  
Composition of Loan Portfolio, Excluding Residential Loans Held for Sale
The composition of the Company’s loan portfolio, excluding residential loans held for sale, at June 30, 2013 and December 31, 2012 was as follows:   
 
June 30,
2013
 
December 31,
2012
Residential real estate loans
$
570,011

 
$
572,768

Commercial real estate loans
522,987

 
506,231

Commercial loans
190,068

 
190,454

Home equity loans
301,868

 
278,375

Consumer loans
18,115

 
16,633

Deferred loan fees net of costs
(490
)
 
(595
)
Total loans
$
1,602,559

 
$
1,563,866
Summary of Activity in Allowance for Loan Losses
The following table presents activity in the ALL for the three months ended June 30, 2013:
 
Residential 
Real Estate
 
Commercial 
Real Estate
 
Commercial
 
Home
Equity
 
Consumer
 
Unallocated
 
Total
ALL:
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
$
7,269

 
$
3,602

 
$
6,200

 
$
3,358

 
$
222

 
$
2,718

 
$
23,369

Loans charged off
(202
)
 
(91
)
 
(167
)
 
(309
)
 
(76
)
 
—

 
(845
)
Recoveries
2

 
17

 
69

 
—

 
9

 
—

 
97

Provision (reduction)
(837
)
 
62

 
(314
)
 
379

 
66

 
1,344

 
700

Ending balance
$
6,232

 
$
3,590

 
$
5,788

 
$
3,428

 
$
221

 
$
4,062

 
$
23,321



The following table presents activity in the ALL for the six months ended June 30, 2013: 
 
Residential 
Real Estate
 
Commercial 
Real Estate
 
Commercial
 
Home
Equity
 
Consumer
 
Unallocated
 
Total
ALL:
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
$
6,996

 
$
4,549

 
$
5,933

 
$
2,520

 
$
184

 
$
2,862

 
$
23,044

Loans charged off
(347
)
 
(171
)
 
(444
)
 
(337
)
 
(133
)
 
—

 
(1,432
)
Recoveries
5

 
92

 
198

 
2

 
28

 
—

 
325

Provision (reduction)
(422
)
 
(880
)
 
101

 
1,243

 
142

 
1,200

 
1,384

Ending balance
$
6,232

 
$
3,590

 
$
5,788

 
$
3,428

 
$
221

 
$
4,062

 
$
23,321

ALL balance attributable to loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
1,487

 
$
296

 
$
386

 
$
442

 
$
71

 
$
—

 
$
2,682

Collectively evaluated for impairment
4,745

 
3,294

 
5,402

 
2,986

 
150

 
4,062

 
20,639

Total ending ALL
$
6,232

 
$
3,590

 
$
5,788

 
$
3,428

 
$
221

 
$
4,062

 
$
23,321

Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
12,099

 
$
8,479

 
$
3,612

 
$
1,526

 
$
421

 
$
—

 
$
26,137

Collectively evaluated for impairment
557,422

 
514,508

 
186,456

 
300,342

 
17,694

 
—

 
1,576,422

Total ending loans balance
$
569,521

 
$
522,987

 
$
190,068

 
$
301,868

 
$
18,115

 
$
—

 
$
1,602,559

 
The following table presents activity in the ALL for the three months ended June 30, 2012:
 
Residential 
Real Estate
 
Commercial 
Real Estate
 
Commercial
 
Home
Equity
 
Consumer
 
Unallocated
 
Total
ALL:
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
$
6,103

 
$
5,713

 
$
5,193

 
$
2,474

 
$
523

 
$
3,004

 
$
23,010

Loans charged off
(138
)
 
(30
)
 
(225
)
 
(464
)
 
(4
)
 
—

 
(861
)
Recoveries
63

 
145

 
56

 
20

 
3

 
—

 
287

Provision (reduction)
324

 
(991
)
 
1,344

 
289

 
(358
)
 
218

 
826

Ending balance
$
6,352

 
$
4,837

 
$
6,368

 
$
2,319

 
$
164

 
$
3,222

 
$
23,262


The following table presents activity in the ALL for the six months ended June 30, 2012: 
 
Residential
Real Estate
 
Commercial
Real Estate
 
Commercial
 
Home
Equity
 
Consumer
 
Unallocated
 
Total
ALL:
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
$
6,398

 
$
5,702

 
$
4,846

 
$
2,704

 
$
420

 
$
2,941

 
$
23,011

Loans charged off
(446
)
 
(209
)
 
(416
)
 
(851
)
 
(28
)
 
—

 
(1,950
)
Recoveries
68

 
166

 
120

 
20

 
10

 
—

 
384

Provision (reduction)
332

 
(822
)
 
1,818

 
446

 
(238
)
 
281

 
1,817

Ending balance
$
6,352

 
$
4,837

 
$
6,368

 
$
2,319

 
$
164

 
$
3,222

 
$
23,262

ALL balance attributable to loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
1,903

 
$
707

 
$
933

 
$
203

 
$
39

 
$
—

 
$
3,785

Collectively evaluated for impairment
4,449

 
4,130

 
5,435

 
2,116

 
125

 
3,222

 
19,477

Total ending ALL
$
6,352

 
$
4,837

 
$
6,368

 
$
2,319

 
$
164

 
$
3,222

 
$
23,262

Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
13,458

 
$
7,362

 
$
4,751

 
$
1,651

 
$
263

 
$
—

 
$
27,485

Collectively evaluated for impairment
556,365

 
489,049

 
177,677

 
270,658

 
15,230

 
—

 
1,508,979

Total ending loans balance
$
569,823

 
$
496,411

 
$
182,428

 
$
272,309

 
$
15,493

 
$
—

 
$
1,536,464


The following table presents the activity in the ALL for the year ended December 31, 2012: 
 
Residential
Real Estate
 
Commercial
Real Estate
 
Commercial
 
Home
Equity
 
Consumer
 
Unallocated
 
Total
ALL:
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
$
6,398

 
$
5,702

 
$
4,846

 
$
2,704

 
$
420

 
$
2,941

 
$
23,011

Loans charged off
(1,197
)
 
(593
)
 
(1,393
)
 
(1,234
)
 
(85
)
 
—

 
(4,502
)
Recoveries
73

 
222

 
406

 
23

 
20

 
—

 
744

Provision (reduction)
1,722

 
(782
)
 
2,074

 
1,027

 
(171
)
 
(79
)
 
3,791

Ending balance
$
6,996

 
$
4,549

 
$
5,933

 
$
2,520

 
$
184

 
$
2,862

 
$
23,044

ALL balance attributable to loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
2,255

 
$
265

 
$
286

 
$
261

 
$
39

 
$
—

 
$
3,106

Collectively evaluated for impairment
4,741

 
4,284

 
5,647

 
2,259

 
145

 
2,862

 
19,938

Total ending ALL
$
6,996

 
$
4,549

 
$
5,933

 
$
2,520

 
$
184

 
$
2,862

 
$
23,044

Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
13,805

 
$
7,968

 
$
3,610

 
$
1,515

 
$
259

 
$
—

 
$
27,157

Collectively evaluated for impairment
558,368

 
498,263

 
186,844

 
276,860

 
16,374

 
—

 
1,536,709

Total ending loans balance
$
572,173

 
$
506,231

 
$
190,454

 
$
278,375

 
$
16,633

 
$
—

 
$
1,563,866
Credit Risk Exposure Indicators by Portfolio Segment
The following table summarizes credit risk exposure indicators by portfolio segment as of the following dates:
 
Residential 
Real Estate
 
Commercial 
Real Estate
 
Commercial
 
Home
Equity
 
Consumer
June 30, 2013
 

 
 

 
 

 
 

 
 

Pass (Grades 1-6)
$
553,040

 
$
465,947

 
$
169,208

 
$
—

 
$
—

Performing
—

 
—

 
—

 
300,343

 
17,695

Special Mention (Grade 7)
2,771

 
13,400

 
7,919

 
—

 
—

Substandard (Grade 8)
13,710

 
43,640

 
12,941

 
—

 
—

Non-performing
—

 
—

 
—

 
1,525

 
420

Total
$
569,521

 
$
522,987

 
$
190,068

 
$
301,868

 
$
18,115

December 31, 2012
 

 
 

 
 

 
 

 
 

Pass (Grades 1-6)
$
555,444

 
$
440,610

 
$
165,460

 
$
—

 
$
—

Performing
—

 
—

 
—

 
276,742

 
16,376

Special Mention (Grade 7)
1,291

 
17,069

 
7,449

 
—

 
—

Substandard (Grade 8)
15,438

 
48,552

 
17,545

 
—

 
—

Non-performing
—

 
—

 
—

 
1,633

 
257

Total
$
572,173

 
$
506,231

 
$
190,454

 
$
278,375

 
$
16,633
Loan Aging Analysis by Portfolio Segment (Including Loans Past Due Over Ninety Days and Non Accrual Loans) and Summary of Non Accrual Loans, Which Include Troubled Debt Restructured Loans, and Loans Past Due Over Ninety Days and Accruing
The following is a loan aging analysis by portfolio segment (including loans past due over 90 days and non-accrual loans) and a summary of non-accrual loans, which include troubled debt restructured loans (“TDRs”), and loans past due over 90 days and accruing as of the following dates:
 
30-59 Days
Past Due
 
60-89 Days
Past Due
 
Greater
than
90 Days
 
Total
Past Due
 
Current
 
Total Loans
Outstanding
 
Loans > 90
Days Past
Due and
Accruing
 
Non-Accrual
Loans
June 30, 2013
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential real estate
$
1,466

 
$
671

 
$
6,857

 
$
8,994

 
$
560,527

 
$
569,521

 
$
—

 
$
8,624

Commercial real estate
1,916

 
337

 
4,853

 
7,106

 
515,881

 
522,987

 
—

 
6,634

Commercial
383

 
87

 
2,637

 
3,107

 
186,961

 
190,068

 
—

 
3,233

Home equity
527

 
57

 
1,113

 
1,697

 
300,171

 
301,868

 
—

 
1,525

Consumer
181

 
41

 
394

 
616

 
17,499

 
18,115

 
—

 
420

Total
$
4,473

 
$
1,193

 
$
15,854

 
$
21,520

 
$
1,581,039

 
$
1,602,559

 
$
—

 
$
20,436

December 31, 2012
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential real estate
$
1,459

 
$
850

 
$
8,410

 
$
10,719

 
$
561,454

 
$
572,173

 
$
193

 
$
10,584

Commercial real estate
896

 
2,227

 
5,380

 
8,503

 
497,728

 
506,231

 
138

 
6,719

Commercial
1,079

 
68

 
2,969

 
4,116

 
186,338

 
190,454

 
160

 
3,409

Home equity
2,230

 
355

 
1,105

 
3,690

 
274,685

 
278,375

 
118

 
1,514

Consumer
342

 
199

 
259

 
800

 
15,833

 
16,633

 
2

 
257

Total
$
6,006

 
$
3,699

 
$
18,123

 
$
27,828

 
$
1,536,038

 
$
1,563,866

 
$
611

 
$
22,483
Summary of All Troubled Debt Restructuring Loans (Accruing and Non Accruing) by Portfolio Segment
The following is a summary of accruing and non-accruing TDRs by portfolio segment as of the following dates:
 
Number of
Contracts
 
Pre-Modification
Outstanding
Recorded
Investment
 
Post-Modification
Outstanding
Recorded
Investment
 
Current
Balance
June 30, 2013
 

 
 

 
 

 
 

Residential real estate
22

 
$
471

 
$
471

 
$
412

Commercial real estate
9

 
2,844

 
2,897

 
2,714

Commercial
6

 
3,581

 
3,719

 
3,540

Consumer
1

 
3

 
3

 
1

Total
38

 
$
6,899

 
$
7,090

 
$
6,667

December 31, 2012
 

 
 

 
 

 
 

Residential real estate
20

 
$
3,305

 
$
3,434

 
$
3,286

Commercial real estate
6

 
2,602

 
2,649

 
2,344

Commercial
3

 
303

 
303

 
236

Consumer
1

 
3

 
3

 
2

Total
30

 
$
6,213

 
$
6,389

 
$
5,868
Summary of Impaired Loan Balances and Associated Allowance by Portfolio Segment
The following is a summary of impaired loan balances and associated allowance by portfolio segment as of the following dates and for the periods then ended:
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
June 30, 2013
 

 
 

 
 

 
 

 
 

 
 
 
 
With an allowance recorded:
 

 
 

 
 

 
 

 
 

 
 
 
 
Residential real estate
$
9,491

 
$
9,491

 
$
1,487

 
$
9,250

 
$
30

 
$
9,967

 
$
59

Commercial real estate
4,047

 
4,047

 
296

 
4,082

 
6

 
4,213

 
9

Commercial
2,754

 
2,754

 
386

 
2,749

 
1

 
2,779

 
3

Home equity
1,243

 
1,243

 
442

 
1,148

 
—

 
1,338

 
—

Consumer
420

 
420

 
71

 
461

 
—

 
459

 
—

Ending Balance
$
17,955

 
$
17,955

 
$
2,682

 
$
17,690

 
$
37

 
$
18,756

 
$
71

Without allowance recorded:
 

 
 

 
 

 
 

 
 

 
 
 
 
Residential real estate
$
2,608

 
$
3,503

 
$
—

 
$
2,874

 
$
6

 
$
2,954

 
$
13

Commercial real estate
4,432

 
4,705

 
—

 
4,072

 
24

 
3,794

 
46

Commercial
858

 
981

 
—

 
652

 
5

 
595

 
6

Home equity
283

 
483

 
—

 
412

 
—

 
388

 
—

Consumer
1

 
1

 
—

 
2

 
—

 
2

 
—

Ending Balance
$
8,182

 
$
9,673

 
$
—

 
$
8,012

 
$
35

 
$
7,733

 
$
65

Total impaired loans
$
26,137

 
$
27,628

 
$
2,682

 
$
25,702

 
$
72

 
$
26,489

 
$
136


 
 
 
 
 
 
 
Year Ended
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
December 31, 2012
 

 
 

 
 

 
 

 
 

With related allowance recorded:
 

 
 

 
 

 
 

 
 

Residential real estate
$
11,021

 
$
11,021

 
$
2,255

 
$
10,585

 
$
114

Commercial real estate
4,296

 
4,296

 
265

 
5,551

 
—

Commercial
2,971

 
2,971

 
286

 
3,927

 
—

Home equity
1,236

 
1,236

 
261

 
1,289

 
—

Consumer
257

 
257

 
39

 
239

 
—

Ending Balance
$
19,781

 
$
19,781

 
$
3,106

 
$
21,591

 
$
114

Without related allowance recorded:
 

 
 

 
 

 
 

 
 

Residential real estate
$
2,784

 
$
3,841

 
$
—

 
$
2,548

 
$
26

Commercial real estate
3,672

 
4,127

 
—

 
2,056

 
33

Commercial
639

 
956

 
—

 
389

 
13

Home equity
279

 
550

 
—

 
617

 
—

Consumer
2

 
2

 
—

 
6

 
—

Ending Balance
$
7,376

 
$
9,476

 
$
—

 
$
5,616

 
$
72

Total impaired loans
$
27,157

 
$
29,257

 
$
3,106

 
$
27,207

 
$
186