Loans And Allowance For Loan Losses (Tables)

9 Months Ended

Sep. 30, 2012

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 September 30, 2012 and December 31, 2011 was as follows:  

	September 30, 2012			December 31, 2011
Residential real estate loans	$	571,712		$	578,757
Commercial real estate loans		501,283			470,061
Commercial loans		178,283			185,045
Home equity loans		274,176			268,782
Consumer loans		15,565			11,878
Deferred loan fees net of costs		(419	)		(495	)
Total loans	$	1,540,600		$	1,514,028

Summary of Activity in Allowance for Loan Losses

The following is a summary of activity in the ALL:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Balance at beginning of period	$	23,262		$	22,989		$	23,011		$	22,293
Loan charge-offs		(1,416	)		(1,400	)		(3,366	)		(3,417	)
Recoveries on loans previously charged off		146			235			530			865
Net charge-offs		(1,270	)		(1,165	)		(2,836	)		(2,552	)
Provision for loan losses		859			1,187			2,676			3,270
Balance at end of period	$	22,851		$	23,011		$	22,851		$	23,011

Activity in Allowance for Loan Losses by Portfolio Segment

The following table presents activity in the ALL for the three months ended September 30, 2012:

	Residential Real Estate			Commercial Real Estate			Commercial			Home Equity			Consumer			Unallocated			Total
ALL:
Beginning balance	$	6,352		$	4,837		$	6,368		$	2,319		$	164		$	3,222		$	23,262
Loans charged off		(578	)		—			(730	)		(70	)		(38	)		—			(1,416	)
Recoveries		5			53			85			1			2			—			146
Provision (reduction)		860			(215	)		73			108			34			(1	)		859
Ending balance	$	6,639		$	4,675		$	5,796		$	2,358		$	162		$	3,221		$	22,851

The following table presents activity in the ALL and select loan information for the nine months ended September 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		(1,024	)		(209	)		(1,146	)		(921	)		(66	)		—		(3,366	)
Recoveries		73			219			205			21			12			—		530
Provision (reduction)		1,192			(1,037	)		1,891			554			(204	)		280		2,676
Ending balance	$	6,639		$	4,675		$	5,796		$	2,358		$	162		$	3,221	$	22,851
Ending Balance:   Individually evaluated for impairment	$	2,071		$	343		$	376		$	265		$	39		$	—	$	3,094
Ending Balance:   Collectively evaluated for impairment	$	4,568		$	4,332		$	5,420		$	2,093		$	123		$	3,221	$	19,757
Loans ending balance:
Ending Balance:   Individually evaluated for impairment	$	12,554		$	7,121		$	3,829		$	1,668		$	263		$	—	$	25,435
Ending Balance:   Collectively evaluated for impairment	$	558,739		$	494,162		$	174,454		$	272,508		$	15,302		$	—	$	1,515,165
Loans ending balance	$	571,293		$	501,283		$	178,283		$	274,176		$	15,565		$	—	$	1,540,600

The following table presents activity in the ALL for the three months ended September 30, 2011:

	Residential Real Estate			Commercial Real Estate			Commercial			Home Equity			Consumer			Unallocated		Total
ALL:
Beginning balance	$	6,109		$	6,324		$	4,473		$	2,478		$	453		$	3,152	$	22,989
Loans charged off		(239	)		(621	)		(325	)		(205	)		(10	)		—		(1,400	)
Recoveries		1			124			83			25			2			—		235
Provision (reduction)		75			179			633			188			(12	)		124		1,187
Ending balance	$	5,946		$	6,006		$	4,864		$	2,486		$	433		$	3,276	$	23,011

The following table presents activity in the ALL and select loan information for the nine months ended September 30, 2011:

	Residential Real Estate			Commercial Real Estate			Commercial			Home Equity			Consumer			Unallocated		Total
ALL:
Beginning balance	$	3,273		$	8,198		$	5,633		$	2,051		$	202		$	2,936	$	22,293
Loans charged off		(1,036	)		(946	)		(1,080	)		(325	)		(30	)		—		(3,417	)
Recoveries		114			307			239			195			10			—		865
Provision (reduction)		3,595			(1,553	)		72			565			251			340		3,270
Ending balance	$	5,946		$	6,006		$	4,864		$	2,486		$	433		$	3,276	$	23,011
Ending Balance:   Individually evaluated for impairment	$	2,669		$	1,411		$	831		$	370		$	91		$	—	$	5,372
Ending Balance:   Collectively evaluated for impairment	$	3,277		$	4,595		$	4,033		$	2,116		$	342		$	3,276	$	17,639
Loans ending balance:
Ending Balance:   Individually evaluated for impairment	$	12,305		$	9,596		$	4,343		$	1,343		$	159		$	—	$	27,746
Ending Balance:   Collectively evaluated for impairment	$	567,943		$	448,752		$	186,717		$	269,125		$	12,029		$	—	$	1,484,566
Loans ending balance	$	580,248		$	458,348		$	191,060		$	270,468		$	12,188		$	—	$	1,512,312

 The following table presents the allowance for loan losses and select loan information for the year ended December 31, 2011:

	Residential  Real Estate			Commercial  Real Estate			Commercial			Home Equity			Consumer			Unallocated		Total
ALL:
Beginning balance	$	3,273		$	8,198		$	5,633		$	2,051		$	202		$	2,936	$	22,293
Loans charged off		(1,216	)		(1,633	)		(1,256	)		(861	)		(59	)		—		(5,025	)
Recoveries		120			374			296			196			16			—		1,002
Provision (reduction)		4,221			(1,237	)		173			1,318			261			5		4,741
Ending balance	$	6,398		$	5,702		$	4,846		$	2,704		$	420		$	2,941	$	23,011
Ending Balance: Individually evaluated for impairment	$	1,364		$	961		$	815		$	440		$	91		$	—	$	3,671
Ending Balance: Collectively evaluated for impairment	$	5,034		$	4,741		$	4,031		$	2,264		$	329		$	2,941	$	19,340
Loans ending balance:
Ending Balance: Individually evaluated for impairment	$	12,715		$	7,830		$	4,019		$	2,670		$	152		$	—	$	27,386
Ending Balance: Collectively evaluated for impairment	$	565,547		$	462,231		$	181,026		$	266,112		$	11,726		$	—	$	1,486,642
Loans ending balance	$	578,262		$	470,061		$	185,045		$	268,782		$	11,878		$	—	$	1,514,028

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
September 30, 2012
Pass (Grades 1-6)	$	555,036	$	435,924	$	153,528	$	—	$	—
Performing		—		—		—		272,471		15,305
Special Mention (Grade 7)		1,143		15,524		7,204		—		—
Substandard (Grade 8)		15,114		49,835		17,551		—		—
Non-performing		—		—		—		1,705		260
Total	$	571,293	$	501,283	$	178,283	$	274,176	$	15,565
December 31, 2011
Pass (Grades 1-6)	$	560,926	$	413,489	$	157,141	$	—	$	—
Performing		—		—		—		266,112		11,726
Special Mention (Grade 7)		876		8,134		8,998		—		—
Substandard (Grade 8)		16,460		48,438		18,335		—		—
Non-performing		—		—		—		2,670		152
Doubtful (Grade 9)		—		—		571		—		—
Total	$	578,262	$	470,061	$	185,045	$	268,782	$	11,878

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
September 30, 2012
Residential real estate	$	917	$	755	$	7,321	$	8,993	$	562,300	$	571,293	$	—	$	9,459
Commercial real estate		1,879		270		5,985		8,134		493,149		501,283		209		7,121
Commercial		645		541		2,468		3,654		174,629		178,283		—		3,765
Home equity		359		228		1,341		1,928		272,248		274,176		37		1,669
Consumer		11		8		260		279		15,286		15,565		—		260
Total	$	3,811	$	1,802	$	17,375	$	22,988	$	1,517,612	$	1,540,600	$	246	$	22,274
December 31, 2011
Residential real estate	$	2,207	$	575	$	7,373	$	10,155	$	568,107	$	578,262	$	99	$	9,503
Commercial real estate		2,105		739		5,009		7,853		462,208		470,061		—		7,830
Commercial		1,020		184		2,309		3,513		181,532		185,045		135		3,955
Home equity		1,208		962		1,927		4,097		264,685		268,782		2		2,670
Consumer		73		10		152		235		11,643		11,878		—		152
Total	$	6,613	$	2,470	$	16,770	$	25,853	$	1,488,175	$	1,514,028	$	236	$	24,110

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
September 30, 2012
Troubled-Debt Restructurings
Residential real estate		18	$	3,124	$	3,227	$	3,095
Commercial real estate		2		1,178		1,178		1,013
Commercial		2		163		163		100
Consumer		1		3		3		3
Total		23	$	4,468	$	4,571	$	4,211
December 31, 2011
Troubled-Debt Restructurings
Residential real estate		19	$	3,221	$	3,426	$	3,330
Commercial real estate		3		1,708		1,708		1,249
Commercial		2		163		163		103
Total		24	$	5,092	$	5,297	$	4,682

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				Nine Months Ended
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
September 30, 2012
With an allowance recorded:
Residential real estate	$	9,233	$	9,233	$	2,071	$	10,803	$	88	$	10,106	$	31
Commercial real estate		5,025		5,025		343		5,839		—		5,679		—
Commercial		3,435		3,435		376		4,062		—		3,862		—
Home equity		1,077		1,077		265		1,331		—		1,063		—
Consumer		257		257		39		234		—		257		—
Ending Balance	$	19,027	$	19,027	$	3,094	$	22,269	$	88	$	20,967	$	31
Without allowance recorded:
Residential real estate	$	3,321	$	4,324	$	—	$	2,324	$	20	$	2,923	$	7
Commercial real estate		2,096		2,341		—		1,723		—		1,860		—
Commercial		394		710		—		347		4		462		4
Home equity		591		1,462		—		726		—		591		—
Consumer		6		166		—		7		—		6		—
Ending Balance	$	6,408	$	9,003	$	—	$	5,127	$	24	$	5,842	$	11
Total impaired loans	$	25,435	$	28,030	$	3,094	$	27,396	$	112	$	26,809	$	42

							Twelve Months Ended
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
December 31, 2011
With related allowance recorded:
Residential real estate	$	10,717	$	11,287	$	1,364	$	11,280	$	109
Commercial real estate		5,477		5,478		961		7,257		3
Commercial		3,636		3,636		815		3,963		7
Home equity		1,888		1,887		440		1,457		1
Consumer		136		136		91		106		—
Ending Balance	$	21,854	$	22,424	$	3,671	$	24,063	$	120
Without related allowance recorded:
Residential real estate	$	1,998	$	1,810	$	—	$	1,847	$	21
Commercial real estate		2,353		3,815		—		2,078		—
Commercial		383		665		—		393		—
Home equity		782		1,189		—		422		—
Consumer		16		176		—		18		—
Ending Balance	$	5,532	$	7,655	$	—	$	4,758	$	21
Total impaired loans	$	27,386	$	30,079	$	3,671	$	28,821	$	141