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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 3 Months Ended
Mar. 31, 2014
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 March 31, 2014 and December 31, 2013 was as follows:   
 
March 31,
2014
 
December 31,
2013
Residential real estate loans
$
568,348

 
$
570,391

Commercial real estate loans
574,695

 
541,099

Commercial loans
191,071

 
179,203

Home equity loans
269,911

 
272,630

Consumer loans
16,766

 
17,651

Deferred loan fees, net of costs
(605
)
 
(572
)
Total loans
$
1,620,186

 
$
1,580,402
Summary of Activity in Allowance for Loan Losses
The following table presents the activity in the ALL and select loan information by portfolio segment for the three months ended March 31, 2014: 
 
Residential 
Real Estate
 
Commercial 
Real Estate
 
Commercial
 
Home
Equity
 
Consumer
 
Unallocated
 
Total
ALL:
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
$
5,603

 
$
4,374

 
$
6,220

 
$
2,403

 
$
319

 
$
2,671

 
$
21,590

Loans charged off
(183
)
 
(171
)
 
(219
)
 
(62
)
 
(14
)
 
—

 
(649
)
Recoveries
92

 
39

 
96

 
3

 
7

 
—

 
237

Provision (reduction)
(101
)
 
286

 
195

 
329

 
(2
)
 
(215
)
 
492

Ending balance
$
5,411

 
$
4,528

 
$
6,292

 
$
2,673

 
$
310

 
$
2,456

 
$
21,670

ALL balance attributable to loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
1,628

 
$
557

 
$
177

 
$
754

 
$
141

 
$
—

 
$
3,257

Collectively evaluated for impairment
3,783

 
3,971

 
6,115

 
1,919

 
169

 
2,456

 
18,413

Total ending ALL
$
5,411

 
$
4,528

 
$
6,292

 
$
2,673

 
$
310

 
$
2,456

 
$
21,670

Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
13,041

 
$
9,339

 
$
2,372

 
$
2,011

 
$
446

 
$
—

 
$
27,209

Collectively evaluated for impairment
554,702

 
565,356

 
188,699

 
267,900

 
16,320

 
—

 
1,592,977

Total ending loans balance
$
567,743

 
$
574,695

 
$
191,071

 
$
269,911

 
$
16,766

 
$
—

 
$
1,620,186

 
The following table presents the activity in the ALL and select loan information by portfolio segment for the three months ended March 31, 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
(145
)
 
(80
)
 
(277
)
 
(28
)
 
(57
)
 
—

 
(587
)
Recoveries
3

 
75

 
129

 
2

 
19

 
—

 
228

Provision (reduction)
415

 
(942
)
 
415

 
864

 
76

 
(144
)
 
684

Ending balance
$
7,269

 
$
3,602

 
$
6,200

 
$
3,358

 
$
222

 
$
2,718

 
$
23,369

ALL balance attributable to loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
2,468

 
$
197

 
$
325

 
$
469

 
$
82

 
$
—

 
$
3,541

Collectively evaluated for impairment
4,801

 
3,405

 
5,875

 
2,889

 
140

 
2,718

 
19,828

Total ending ALL
$
7,269

 
$
3,602

 
$
6,200

 
$
3,358

 
$
222

 
$
2,718

 
$
23,369

Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
13,754

 
$
7,633

 
$
3,329

 
$
1,855

 
$
488

 
$
—

 
$
27,059

Collectively evaluated for impairment
558,180

 
498,359

 
187,963

 
289,835

 
16,771

 
—

 
1,551,108

Total ending loans balance
$
571,934

 
$
505,992

 
$
191,292

 
$
291,690

 
$
17,259

 
$
—

 
$
1,578,167


The following table presents the activity in the ALL and select loan information by portfolio segment for the year ended December 31, 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
(1,059
)
 
(952
)
 
(1,426
)
 
(647
)
 
(190
)
 
—

 
(4,274
)
Recoveries
35

 
121

 
495

 
56

 
61

 
—

 
768

Provision (reduction)
(369
)
 
656

 
1,218

 
474

 
264

 
(191
)
 
2,052

Ending balance
$
5,603

 
$
4,374

 
$
6,220

 
$
2,403

 
$
319

 
$
2,671

 
$
21,590

ALL balance attributable to loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
1,750

 
$
526

 
$
132

 
$
433

 
$
140

 
$
—

 
$
2,981

Collectively evaluated for impairment
3,853

 
3,848

 
6,088

 
1,970

 
179

 
2,671

 
18,609

Total ending ALL
$
5,603

 
$
4,374

 
$
6,220

 
$
2,403

 
$
319

 
$
2,671

 
$
21,590

Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
14,435

 
$
8,864

 
$
2,635

 
$
1,571

 
$
442

 
$
—

 
$
27,947

Collectively evaluated for impairment
555,384

 
532,235

 
176,568

 
271,059

 
17,209

 
—

 
1,552,455

Total ending loans balance
$
569,819

 
$
541,099

 
$
179,203

 
$
272,630

 
$
17,651

 
$
—

 
$
1,580,402
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
 
Total
March 31, 2014
 

 
 

 
 

 
 

 
 

 
 
Pass (Grades 1-6)
$
550,645

 
$
531,874

 
$
170,595

 
$
—

 
$
—

 
$
1,253,114

Performing
—

 
—

 
—

 
267,900

 
16,320

 
284,220

Special Mention (Grade 7)
3,171

 
6,471

 
11,585

 
—

 
—

 
21,227

Substandard (Grade 8)
13,927

 
36,350

 
8,891

 
—

 
—

 
59,168

Non-performing
—

 
—

 
—

 
2,011

 
446

 
2,457

Total
$
567,743

 
$
574,695

 
$
191,071

 
$
269,911

 
$
16,766

 
$
1,620,186

December 31, 2013
 

 
 

 
 

 
 

 
 

 
 
Pass (Grades 1-6)
$
551,035

 
$
496,257

 
$
155,851

 
$
—

 
$
—

 
$
1,203,143

Performing
—

 
—

 
—

 
271,059

 
17,210

 
288,269

Special Mention (Grade 7)
3,196

 
7,749

 
11,315

 
—

 
—

 
22,260

Substandard (Grade 8)
15,588

 
37,093

 
12,037

 
—

 
—

 
64,718

Non-performing
—

 
—

 
—

 
1,571

 
441

 
2,012

Total
$
569,819

 
$
541,099

 
$
179,203

 
$
272,630

 
$
17,651

 
$
1,580,402
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 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
March 31, 2014
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential real estate
$
2,352

 
$
532

 
$
6,426

 
$
9,310

 
$
558,433

 
$
567,743

 
$
—

 
$
9,125

Commercial real estate
1,413

 
643

 
6,108

 
8,164

 
566,531

 
574,695

 
—

 
8,278

Commercial
916

 
256

 
1,620

 
2,792

 
188,279

 
191,071

 
50

 
1,935

Home equity
635

 
206

 
1,529

 
2,370

 
267,541

 
269,911

 
—

 
2,011

Consumer
31

 
8

 
425

 
464

 
16,302

 
16,766

 
—

 
446

Total
$
5,347

 
$
1,645

 
$
16,108

 
$
23,100

 
$
1,597,086

 
$
1,620,186

 
$
50

 
$
21,795

December 31, 2013
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential real estate
$
3,218

 
$
684

 
$
7,269

 
$
11,171

 
$
558,648

 
$
569,819

 
$
—

 
$
10,520

Commercial real estate
926

 
2,036

 
3,301

 
6,263

 
534,836

 
541,099

 
257

 
7,799

Commercial
159

 
237

 
1,980

 
2,376

 
176,827

 
179,203

 
198

 
2,146

Home equity
1,395

 
388

 
1,007

 
2,790

 
269,840

 
272,630

 
—

 
1,571

Consumer
63

 
21

 
418

 
502

 
17,149

 
17,651

 
—

 
441

Total
$
5,761

 
$
3,366

 
$
13,975

 
$
23,102

 
$
1,557,300

 
$
1,580,402

 
$
455

 
$
22,477
Summary of All Troubled Debt Restructuring Loans (Accruing and Non Accruing) by Portfolio Segment
The following is a summary of accruing and non-accruing TDR loans by portfolio segment as of the following dates:
 
 
Number of Contracts
 
Pre-Modification
Outstanding Recorded
Investment
 
Post-Modification
Outstanding Recorded
Investment
 
Current Balance
 
 
March 31, 2014
 
December 31, 2013
 
March 31, 2014
 
December 31, 2013
 
March 31, 2014
 
December 31, 2013
 
March 31, 2014
 
December 31, 2013
Residential
real estate
 
27

 
26

 
$
4,276

 
$
4,140

 
$
4,461

 
$
4,311

 
4,186

 
$
4,089

Commercial
real estate
 
9

 
10

 
2,471

 
3,031

 
2,509

 
3,074

 
1,999

 
2,558

Commercial
 
7

 
7

 
504

 
504

 
504

 
504

 
483

 
488

Consumer and
home equity
 
1

 
1

 
3

 
3

 
3

 
3

 
—

 
1

Total
 
44

 
44

 
$
7,254

 
$
7,678

 
$
7,477

 
$
7,892

 
$
6,668

 
$
7,136
Summary of Loans by Segment Modified as TDR
The following is a summary of loans by portfolio segment that were modified as a TDR within the previous 12 months and for which the borrower subsequently defaulted during the periods indicated:
 
Three Months Ended
March 31,
 
2014
 
2013
 
Number of Contracts
 
Recorded Investment
 
Number of Contracts
 
Recorded Investment
Commercial
1

 
$
46

 
—

 
$
—

Total
1

 
$
46

 
—

 
$
—
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 and for the three months ended March 31, 2014:
 
 
 
 
 
 
 
Three Months Ended
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
With an allowance recorded:
 

 
 

 
 

 
 

 
 

Residential real estate
$
10,091

 
$
10,091

 
$
1,628

 
$
10,894

 
$
29

Commercial real estate
7,845

 
7,844

 
557

 
7,252

 
5

Commercial
1,980

 
1,980

 
177

 
1,963

 
5

Home equity
1,593

 
1,593

 
754

 
1,557

 
—

Consumer
429

 
430

 
141

 
427

 
—

Ending Balance
$
21,938

 
$
21,938

 
$
3,257

 
$
22,093

 
$
39

Without allowance recorded:
 

 
 

 
 

 
 

 
 

Residential real estate
$
2,950

 
$
3,371

 
$
—

 
$
2,345

 
$
5

Commercial real estate
1,494

 
2,088

 
—

 
1,735

 
10

Commercial
392

 
484

 
—

 
569

 
1

Home equity
418

 
594

 
—

 
418

 
—

Consumer
17

 
37

 
—

 
17

 
—

Ending Balance
$
5,271

 
$
6,574

 
$
—

 
$
5,084

 
$
16

Total impaired loans
$
27,209

 
$
28,512

 
$
3,257

 
$
27,177

 
$
55


The following is a summary of impaired loan balances and associated allowance by portfolio segment as of and for the three months ended March 31, 2013:
 
 
 
 
 
 
 
Three Months Ended
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
With an allowance recorded:
 

 
 

 
 

 
 

 
 

Residential real estate
$
10,904

 
$
10,904

 
$
2,468

 
$
8,689

 
$
29

Commercial real estate
3,680

 
3,680

 
197

 
4,343

 
3

Commercial
3,002

 
3,002

 
325

 
2,788

 
2

Home equity
1,319

 
1,319

 
469

 
1,528

 
—

Consumer
486

 
486

 
82

 
457

 
—

Ending Balance
$
19,391

 
$
19,391

 
$
3,541

 
$
17,805

 
$
34

Without allowance recorded:
 

 
 

 
 

 
 

 
 

Residential real estate
$
2,850

 
$
3,672

 
$
—

 
$
5,028

 
$
7

Commercial real estate
3,953

 
4,217

 
—

 
3,516

 
22

Commercial
327

 
421

 
—

 
558

 
1

Home equity
536

 
807

 
—

 
364

 
—

Consumer
2

 
2

 
—

 
2

 
—

Ending Balance
$
7,668

 
$
9,119

 
$
—

 
$
9,468

 
$
30

Total impaired loans
$
27,059

 
$
28,510

 
$
3,541

 
$
27,273

 
$
64


The following is a summary of impaired loan balances and associated allowance by portfolio segment as of and for the year ended December 31, 2013:
 
 
 
 
 
 
 
Year Ended
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
With an allowance recorded:
 
 
 

 
 

 
 

 
 

Residential real estate
$
11,902

 
$
11,902

 
$
1,750

 
$
10,411

 
$
118

Commercial real estate
6,805

 
6,805

 
526

 
5,517

 
20

Commercial
1,876

 
1,876

 
132

 
2,543

 
10

Home equity
1,228

 
1,228

 
433

 
1,291

 
—

Consumer
425

 
425

 
140

 
460

 
—

Ending Balance
$
22,236

 
$
22,236

 
$
2,981

 
$
20,222

 
$
148

Without allowance recorded:
 

 
 

 
 

 
 

 
 

Residential real estate
$
2,533

 
$
3,846

 
$
—

 
$
2,925

 
$
28

Commercial real estate
2,059

 
2,782

 
—

 
3,362

 
55

Commercial
759

 
871

 
—

 
765

 
8

Home equity
343

 
479

 
—

 
334

 
—

Consumer
17

 
37

 
—

 
11

 
—

Ending Balance
$
5,711

 
$
8,015

 
$
—

 
$
7,397

 
$
91

Total impaired loans
$
27,947

 
$
30,251

 
$
2,981

 
$
27,619

 
$
239