Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2012

Loans and Allowance for Loan Losses [Abstract]

Summary of changes in allowance for loan losses

An analysis of the allowance for loan losses for each of the three years ending December 31, 2012, 2011 and 2010 is as follows:

	2012			2011			2010
	(dollars in thousands)
Allowance for loan losses, beginning of year	$	16,574		$	14,053		$	12,373
Loans charged-off		(2,301	)		(2,824	)		(4,443	)
Recoveries on loans previously charged-off		774			795			548
Net charge-offs		(1,527	)		(2,029	)		(3,895	)
Provision charged to expense		4,150			4,550			5,575
Allowance for loan losses, end of year	$	19,197		$	16,574		$	14,053

Summary of allowance for loan losses

Further information pertaining to the allowance for loan losses at December 31, 2012 follows:

	Construction and Land Development		Commercial and Industrial			Commercial Real Estate		Residential Real  Estate			Consumer			Home Equity			Unallocated			Total
	(dollars in thousands)
Allowance for Loan Losses:
Balance at December 31, 2011	$	2,893	$	3,139		$	6,566	$	1,886		$	356		$	704		$	1,030		$	16,574
Charge-offs		—		(1,253	)		—		(192	)		(697	)		(159	)		—			(2,301	)
Recoveries		—		307			9		17			422			19			—			774
Provision		148		925			2,490		283			252			322			(270	)		4,150
Ending balance at December 31, 2012	$	3,041	$	3,118		$	9,065	$	1,994		$	333		$	886		$	760		$	19,197
Amount of allowance for loan losses for loans deemed to be impaired	$	1,000	$	104		$	415	$	117		$	—		$	96		$	—		$	1,732
Amount of allowance for loan losses for loans not deemed to be impaired	$	2,041	$	3,014		$	8,650	$	1,877		$	333		$	790		$	760		$	17,465
Loans:
Ending balance	$	38,618	$	88,475		$	576,465	$	281,857		$	7,450		$	118,923		$	—		$	1,111,788
Loans deemed to be impaired	$	1,500	$	1,282		$	2,281	$	766		$	—		$	96		$	—		$	5,925
Loans not deemed to be impaired	$	37,118	$	87,193		$	574,184	$	281,091		$	7,450		$	118,827		$	—		$	1,105,863

Further information pertaining to the allowance for loan losses at December 31, 2011 follows:

	Construction and Land Development			Commercial and Industrial			Commercial Real Estate		Residential Real Estate			Consumer			Home Equity			Unallocated		Total
	(dollars in thousands)
Allowance for Loan Losses:
Balance at December 31, 2010	$	1,752		$	3,163		$	5,671	$	1,718		$	298		$	725		$	726	$	14,053
Charge-offs		(1,200	)		(676	)		—		(337	)		(607	)		(4	)		—		(2,824	)
Recoveries		—			293			6		27			467			2			—		795
Provision		2,341			359			889		478			198			(19	)		304		4,550
Ending balance at December 31, 2011	$	2,893		$	3,139		$	6,566	$	1,886		$	356		$	704		$	1,030	$	16,574
Amount of allowance for loan losses for loans deemed to be impaired	$	—		$	335		$	282	$	124		$	—		$	—		$	—	$	741
Amount of allowance for loan losses for loans not deemed to be impaired	$	2,893		$	2,804		$	6,284	$	1,762		$	356		$	704		$	1,030	$	15,833
Loans:
Ending balance	$	56,819		$	82,404		$	487,495	$	239,307		$	7,681		$	110,786		$	—	$	984,492
Loans deemed to be impaired	$	1,500		$	1,525		$	4,561	$	516		$	—		$	—		$	—	$	8,102
Loans not deemed to be impaired	$	55,319		$	80,879		$	482,934	$	238,791		$	7,681		$	110,786		$	—	$	976,390

Loans by risk rating

The following table presents the Company’s loans by risk rating at December 31, 2012.

	Construction and Land Development		Commercial and Industrial		Commercial Real Estate
	(dollars in thousands)
Grade:
1-3 (Pass)	$	29,719	$	86,587	$	569,760
4 (Monitor)		7,399		606		4,424
5 (Substandard)		—		—		—
6 (Doubtful)		—		—		—
Impaired		1,500		1,282		2,281
Total	$	38,618	$	88,475	$	576,465

The following table presents the Company’s loans by risk rating at December 31, 2011.

	Construction and Land Development		Commercial and Industrial		Commercial Real Estate
	(dollars in thousands)
Grade:
1-3 (Pass)	$	48,298	$	80,140	$	478,186
4 (Monitor)		7,021		739		4,748
5 (Substandard)		—		—		—
6 (Doubtful)		—		—		—
Impaired		1,500		1,525		4,561
Total	$	56,819	$	82,404	$	487,495

Aging of past due loans

AGING OF PAST-DUE LOANS

Further information pertaining to the allowance for loan losses at December 31, 2012 follows:

	Accruing 30-89 Days Past Due		Non Accrual		Accruing Greater Than 90  Days		Total Past Due		Current Loans		Total
	(dollars in thousands)
Construction and land development	$	—	$	1,500	$	—	$	1,500	$	37,118	$	38,618
Commercial and industrial		1,256		676		—		1,932		86,543		88,475
Commercial real estate		3,450		674		—		4,124		572,341		576,465
Residential real estate		864		1,597		—		2,461		279,396		281,857
Consumer and overdrafts		32		24		—		56		7,394		7,450
Home equity		1,088		—		—		1,088		117,835		118,923
Total	$	6,690	$	4,471	$	—	$	11,161	$	1,100,627	$	1,111,788

Further information pertaining to the allowance for loan losses at December 31, 2011 follows:

	Accruing 30-89 Days Past Due		Non Accrual		Accruing Greater Than 90 Days		Total Past Due		Current Loans		Total
	(dollars in thousands)
Construction and land development	$	—	$	1,500	$	—	$	1,500	$	55,319	$	56,819
Commercial and industrial		1,417		763		18		2,198		80,206		82,404
Commercial real estate		2,528		736		—		3,264		484,231		487,495
Residential real estate		2,635		2,324		—		4,959		234,348		239,307
Consumer and overdrafts		519		9		—		528		7,153		7,681
Home equity		171		495		—		666		110,120		110,786
Total	$	7,270	$	5,827	$	18	$	13,115	$	971,377	$	984,492

Information pertaining to impaired loans

The following is information pertaining to impaired loans at December 31, 2012:

	Carrying Value		Unpaid Balance Principal		Required Reserve		Average Carrying Value		Interest Income Recognized
	(dollars in thousands)
With no required reserve recorded:
Construction and land development	$	—	$	—	$	—	$	346	$	—
Commercial and industrial		503		994		—		425		1
Commercial real estate		169		199		—		176		—
Residential real estate		30		31		—		124		—
Consumer		—		—		—		—		—
Home equity		—		—		—		—		—
Total	$	702	$	1,224	$	—	$	1,071	$	1
With required reserve recorded:
Construction and land development	$	1,500	$	3,292	$	1,000	$	1,154	$	—
Commercial and industrial		779		995		104		1,317		40
Commercial real estate		2,112		2,158		415		2,817		138
Residential real estate		736		736		117		640		1
Consumer		—		—		—		—		—
Home equity		96		96		96		44		—
Total	$	5,223	$	7,277	$	1,732	$	5,972	$	179
Total
Construction and land development	$	1,500	$	3,292	$	1,000	$	1,500	$	—
Commercial and industrial		1,282		1,989		104		1,742		41
Commercial real estate		2,281		2,357		415		2,993		138
Residential real estate		766		767		117		764		1
Consumer		—		—		—		—		—
Home equity		96		96		96		44		—
Total	$	5,925	$	8,501	$	1,732	$	7,043	$	180

The following is information pertaining to impaired loans at December 31, 2011:

	Carrying Value		Unpaid Balance Principal		Required Reserve		Average Carrying Value		Interest Income Recognized
	(dollars in thousands)
With no required reserve recorded:
Construction and land development	$	1,500	$	3,292	$	—	$	2,377	$	—
Commercial and industrial		313		537		—		404		3
Commercial real estate		183		203		—		368		—
Residential real estate		33		33		—		3		—
Consumer		—		—		—		—		—
Home equity		—		—		—		—		—
Total	$	2,029	$	4,065	$	—	$	3,152	$	3
With required reserve recorded:
Construction and land development	$	—	$	—	$	—	$	926	$	—
Commercial and industrial		1,212		1,240		335		1,105		18
Commercial real estate		4,378		4,409		282		4,894		133
Residential real estate		483		483		124		207		1
Consumer		—		—		—		—		—
Home equity		—		—		—		—		—
Total	$	6,073	$	6,132	$	741	$	7,132	$	152
Total
Construction and land development	$	1,500	$	3,292	$	—	$	3,303	$	—
Commercial and industrial		1,525		1,777		335		1,509		21
Commercial real estate		4,561		4,612		282		5,262		133
Residential real estate		516		516		124		210		1
Consumer		—		—		—		—		—
Home equity		—		—		—		—		—
Total	$	8,102	$	10,197	$	741	$	10,284	$	155

Troubled debt restructurings

The following is information pertaining to troubled debt restructurings occurring during the year ended December 31, 2012:

	Number of Contracts		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
	(dollars in thousands)
Commercial and industrial		1	$	750	$	736
Residential real estate		1		6		6
Home equity		1		98		96
Total		3	$	854	$	838

The following is information pertaining to troubled debt restructurings occurring during the year ended December 31, 2011:

	Number of Contracts		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
	(dollars in thousands)
Construction and land development		1	$	39	$	—
Commercial and industrial		13		960		909
Commercial real estate		6		3,199		3,195
Total		20	$	4,198	$	4,104