| Credit Quality Assessment |
Note 5 – CREDIT QUALITY ASSESSMENT Allowance for Loan and Lease Losses Summary information on the allowance for loan and lease loss activity for the period indicated is provided in the following table: | | | Nine Months Ended September 30, | | | (In thousands) | | 2013 | | 2012 | | | Balance at beginning of year | | $ | 42,957 | | $ | 49,426 | | | Provision (credit) for loan and lease losses | | | (1,670) | | | 2,481 | | | Loan and lease charge-offs | | | (9,639) | | | (11,456) | | | Loan and lease recoveries | | | 7,774 | | | 2,167 | | | Net charge-offs | | | (1,865) | | | (9,289) | | | Balance at period end | | $ | 39,422 | | $ | 42,618 | | The following tables provide information on the activity in the allowance for loan and lease losses by the respective loan portfolio segment for the period indicated: | | | For the Nine Months Ended September 30, 2013 | | | | | | | | | Commercial Real Estate | | | | | | | | | | | Residential Real Estate | | | | | | | | | | | | | | | | | Commercial | | | | | | | | | | | | | | | | | | | | | | | | | Commercial | | | Commercial | | | Commercial | | | Owner | | | | | | | | | | | Residential | | | Residential | | | | | | | (Dollars in thousands) | | Business | | | AD&C | | | Investor R/E | | | Occupied R/E | | | Leasing | | | Consumer | | | Mortgage | | | Construction | | | Total | | | Balance at beginning of year | | $ | 6,495 | | | $ | 4,737 | | | $ | 9,583 | | | $ | 6,997 | | | $ | 332 | | | $ | 3,846 | | | $ | 8,522 | | | $ | 2,445 | | | $ | 42,957 | | | Provision (credit) | | | 1,332 | | | | (4,037) | | | | 1,026 | | | | (642) | | | | (321) | | | | 1,204 | | | | 231 | | | | (463) | | | | (1,670) | | | Charge-offs | | | (2,405) | | | | - | | | | (4,744) | | | | (229) | | | | - | | | | (1,327) | | | | (829) | | | | (105) | | | | (9,639) | | | Recoveries | | | 692 | | | | 3,080 | | | | 3,347 | | | | 332 | | | | 10 | | | | 160 | | | | 144 | | | | 9 | | | | 7,774 | | | Net charge-offs | | | (1,713) | | | | 3,080 | | | | (1,397) | | | | 103 | | | | 10 | | | | (1,167) | | | | (685) | | | | (96) | | | | (1,865) | | | Balance at end of period | | $ | 6,114 | | | $ | 3,780 | | | $ | 9,212 | | | $ | 6,458 | | | $ | 21 | | | $ | 3,883 | | | $ | 8,068 | | | $ | 1,886 | | | $ | 39,422 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total loans and leases | | $ | 332,670 | | | $ | 158,739 | | | $ | 518,029 | | | $ | 569,350 | | | $ | 962 | | | $ | 368,764 | | | $ | 595,180 | | | $ | 118,316 | | | $ | 2,662,010 | | | Allowance for loans and leases to total loans and leases ratio | | | 1.84 | % | | | 2.38 | % | | | 1.78 | % | | | 1.13 | % | | | 2.18 | % | | | 1.05 | % | | | 1.36 | % | | | 1.59 | % | | | 1.48 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance of loans specifically evaluated for impairment | | $ | 6,562 | | | $ | 5,086 | | | $ | 7,729 | | | $ | 5,385 | | | | na. | | | $ | 29 | | | $ | 4,438 | | | $ | 1,860 | | | $ | 31,089 | | | Allowance for loans specifically evaluated for impairment | | $ | 1,550 | | | $ | 946 | | | $ | 146 | | | $ | 391 | | | | na. | | | | na. | | | $ | 650 | | | $ | 547 | | | $ | 4,230 | | | Specific allowance to specific loans ratio | | | 23.62 | % | | | 18.60 | % | | | 1.89 | % | | | 7.26 | % | | | na. | | | | na. | | | | 14.65 | % | | | 29.41 | % | | | 13.61 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance of loans collectively evaluated | | $ | 326,108 | | | $ | 153,653 | | | $ | 510,300 | | | $ | 563,965 | | | $ | 962 | | | $ | 368,735 | | | $ | 590,742 | | | $ | 116,456 | | | $ | 2,630,921 | | | Allowance for loans collectively evaluated | | $ | 4,564 | | | $ | 2,834 | | | $ | 9,066 | | | $ | 6,067 | | | $ | 21 | | | $ | 3,883 | | | $ | 7,418 | | | $ | 1,339 | | | $ | 35,192 | | | Collective allowance to collective loans ratio | | | 1.40 | % | | | 1.84 | % | | | 1.78 | % | | | 1.08 | % | | | 2.18 | % | | | 1.05 | % | | | 1.26 | % | | | 1.15 | % | | | 1.34 | % | | | | For the Year Ended December 31, 2012 | | | | | | | | | Commercial Real Estate | | | | | | | | | | | Residential Real Estate | | | | | | | | | | | | | | | | | Commercial | | | | | | | | | | | | | | | | | | | | | | | | | Commercial | | | Commercial | | | Commercial | | | Owner | | | | | | | | | | | Residential | | | Residential | | | | | | | (Dollars in thousands) | | Business | | | AD&C | | | Investor R/E | | | Occupied R/E | | | Leasing | | | Consumer | | | Mortgage | | | Construction | | | Total | | | Balance at beginning of year | | $ | 6,727 | | | $ | 6,664 | | | $ | 8,248 | | | $ | 7,329 | | | $ | 795 | | | $ | 4,873 | | | $ | 10,583 | | | $ | 4,207 | | | $ | 49,426 | | | Provision (credit) | | | (758) | | | | 826 | | | | 4,928 | | | | 804 | | | | (478) | | | | 44 | | | | (167) | | | | (1,550) | | | | 3,649 | | | Charge-offs | | | (1,022) | | | | (3,281) | | | | (3,690) | | | | (1,174) | | | | (8) | | | | (1,298) | | | | (2,107) | | | | (224) | | | | (12,804) | | | Recoveries | | | 1,548 | | | | 528 | | | | 97 | | | | 38 | | | | 23 | | | | 227 | | | | 213 | | | | 12 | | | | 2,686 | | | Net charge-offs | | | 526 | | | | (2,753) | | | | (3,593) | | | | (1,136) | | | | 15 | | | | (1,071) | | | | (1,894) | | | | (212) | | | | (10,118) | | | Balance at end of period | | $ | 6,495 | | | $ | 4,737 | | | $ | 9,583 | | | $ | 6,997 | | | $ | 332 | | | $ | 3,846 | | | $ | 8,522 | | | $ | 2,445 | | | $ | 42,957 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total loans and leases | | $ | 346,708 | | | $ | 151,933 | | | $ | 456,888 | | | $ | 571,510 | | | $ | 3,421 | | | $ | 356,990 | | | $ | 523,364 | | | $ | 120,314 | | | $ | 2,531,128 | | | Allowance for loans and leases to total loans and leases ratio | | | 1.87 | % | | | 3.12 | % | | | 2.10 | % | | | 1.22 | % | | | 9.70 | % | | | 1.08 | % | | | 1.63 | % | | | 2.03 | % | | | 1.70 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance of loans specifically evaluated for impairment | | $ | 8,984 | | | $ | 6,332 | | | $ | 11,843 | | | $ | 15,184 | | | | na. | | | $ | 31 | | | $ | 4,528 | | | $ | 1,871 | | | $ | 48,773 | | | Allowance for loans specifically evaluated for impairment | | $ | 2,597 | | | $ | - | | | $ | 774 | | | $ | 598 | | | | na. | | | | na. | | | $ | 713 | | | $ | 467 | | | $ | 5,149 | | | Specific allowance to specific loans ratio | | | 28.91 | % | | | - | | | | 6.54 | % | | | 3.94 | % | | | na. | | | | na. | | | | 15.75 | % | | | 24.96 | % | | | 10.56 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance of loans collectively evaluated | | $ | 337,724 | | | $ | 145,601 | | | $ | 445,045 | | | $ | 556,326 | | | $ | 3,421 | | | $ | 356,959 | | | $ | 518,836 | | | $ | 118,443 | | | $ | 2,482,355 | | | Allowance for loans collectively evaluated | | $ | 3,898 | | | $ | 4,737 | | | $ | 8,809 | | | $ | 6,399 | | | $ | 332 | | | $ | 3,846 | | | $ | 7,809 | | | $ | 1,978 | | | $ | 37,808 | | | Collective allowance to collective loans ratio | | | 1.15 | % | | | 3.25 | % | | | 1.98 | % | | | 1.15 | % | | | 9.70 | % | | | 1.08 | % | | | 1.51 | % | | | 1.67 | % | | | 1.52 | % | The following table provides summary information regarding impaired loans at the dates indicated and for the periods then ended: | (In thousands) | | September 30, 2013 | | December 31, 2012 | | | Impaired loans with a specific allowance | | $ | 15,142 | | $ | 27,526 | | | Impaired loans without a specific allowance | | | 15,947 | | | 21,247 | | | Total impaired loans | | $ | 31,089 | | $ | 48,773 | | | | | | | | | | | | Allowance for loan and lease losses related to impaired loans | | $ | 4,230 | | $ | 5,149 | | | Allowance for loan and lease losses related to loans collectively evaluated | | | 35,192 | | | 37,808 | | | Total allowance for loan and lease losses | | $ | 39,422 | | $ | 42,957 | | | | | | | | | | | | Average impaired loans for the period | | $ | 39,843 | | $ | 57,438 | | | Contractual interest income due on impaired loans during the period | | $ | 2,292 | | $ | 4,433 | | | Interest income on impaired loans recognized on a cash basis | | $ | 1,694 | | $ | 1,121 | | | Interest income on impaired loans recognized on an accrual basis | | $ | 332 | | $ | 560 | | The following tables present the recorded investment with respect to impaired loans, the associated allowance by the applicable portfolio segment and the principal balance of the impaired loans prior to amounts charged-off at the dates indicated: | | | September 30, 2013 | | | | | | | | Commercial Real Estate | | | | | Total Recorded | | | | | | | | | | | | | | Commercial | | All | | Investment in | | | | | | | | Commercial | | Commercial | | Owner | | Other | | Impaired | | | (In thousands) | | Commercial | | AD&C | | Investor R/E | | Occupied R/E | | Loans | | Loans | | | Impaired loans with a specific allowance | | | | | | | | | | | | | | | | | | | | | Non-accruing | | $ | 1,189 | | $ | 1,379 | | $ | 770 | | $ | 207 | | $ | - | | $ | 3,545 | | | Restructured accruing | | | 905 | | | - | | | - | | | 995 | | | 2,379 | | | 4,279 | | | Restructured non-accruing | | | 266 | | | 2,439 | | | - | | | 2,581 | | | 2,032 | | | 7,318 | | | Balance | | $ | 2,360 | | $ | 3,818 | | $ | 770 | | $ | 3,783 | | $ | 4,411 | | $ | 15,142 | | | | | | | | | | | | | | | | | | | | | | | | Allowance | | $ | 1,550 | | $ | 946 | | $ | 146 | | $ | 391 | | $ | 1,197 | | $ | 4,230 | | | | | | | | | | | | | | | | | | | | | | | | Impaired loans without a specific allowance | | | | | | | | | | | | | | | | | | | | | Non-accruing | | $ | 1,079 | | $ | 1,268 | | $ | 5,483 | | $ | 675 | | $ | - | | $ | 8,505 | | | Restructured accruing | | | 1,607 | | | - | | | 852 | | | 188 | | | 1,128 | | | 3,775 | | | Restructured non-accruing | | | 1,516 | | | - | | | 624 | | | 739 | | | 788 | | | 3,667 | | | Balance | | $ | 4,202 | | $ | 1,268 | | $ | 6,959 | | $ | 1,602 | | $ | 1,916 | | $ | 15,947 | | | | | | | | | | | | | | | | | | | | | | | | Total impaired loans | | | | | | | | | | | | | | | | | | | | | Non-accruing | | $ | 2,268 | | $ | 2,647 | | $ | 6,253 | | $ | 882 | | $ | - | | $ | 12,050 | | | Restructured accruing | | | 2,512 | | | - | | | 852 | | | 1,183 | | | 3,507 | | | 8,054 | | | Restructured non-accruing | | | 1,782 | | | 2,439 | | | 624 | | | 3,320 | | | 2,820 | | | 10,985 | | | Balance | | $ | 6,562 | | $ | 5,086 | | $ | 7,729 | | $ | 5,385 | | $ | 6,327 | | $ | 31,089 | | | | | | | | | | | | | | | | | | | | | | | | Unpaid principal balance in total impaired loans | | $ | 8,645 | | $ | 13,448 | | $ | 12,585 | | $ | 7,028 | | $ | 6,944 | | $ | 48,650 | | | | September 30, 2013 | | | | | | | | Commercial Real Estate | | | | | Total Recorded | | | | | | | | | | | | | | Commercial | | All | | Investment in | | | | | | | | Commercial | | Commercial | | Owner | | Other | | Impaired | | | (In thousands) | | Commercial | | AD&C | | Investor R/E | | Occupied R/E | | Loans | | Loans | | | Average impaired loans for the period | | $ | 7,539 | | $ | 5,782 | | $ | 11,343 | | $ | 8,705 | | $ | 6,474 | | $ | 39,843 | | | Contractual interest income due on impaired loans during the period | | $ | 481 | | $ | 590 | | $ | 430 | | $ | 578 | | $ | 213 | | | | | | Interest income on impaired loans recognized on a cash basis | | $ | 250 | | $ | 269 | | $ | 74 | | $ | 1,010 | | $ | 91 | | | | | | Interest income on impaired loans recognized on an accrual basis | | $ | 117 | | $ | - | | $ | 23 | | $ | 58 | | $ | 134 | | | | | | | | December 31, 2012 | | | | | | | | Commercial Real Estate | | | | | Total Recorded | | | | | | | | | | | | | | Commercial | | All | | Investment in | | | | | | | | Commercial | | Commercial | | Owner | | Other | | Impaired | | | (In thousands) | | Commercial | | AD&C | | Investor R/E | | Occupied R/E | | Loans | | Loans | | | Impaired loans with a specific allowance | | | | | | | | | | | | | | | | | | | | | Non-accruing | | $ | 2,514 | | $ | - | | $ | 10,219 | | $ | 4,319 | | $ | - | | $ | 17,052 | | | Restructured accruing | | | 2,981 | | | - | | | - | | | 1,503 | | | 3,419 | | | 7,903 | | | Restructured non-accruing | | | 228 | | | - | | | - | | | 1,039 | | | 1,304 | | | 2,571 | | | Balance | | $ | 5,723 | | $ | - | | $ | 10,219 | | $ | 6,861 | | $ | 4,723 | | $ | 27,526 | | | | | | | | | | | | | | | | | | | | | | | | Allowance | | $ | 2,597 | | $ | - | | $ | 774 | | $ | 598 | | $ | 1,180 | | $ | 5,149 | | | | | | | | | | | | | | | | | | | | | | | | Impaired loans without a specific allowance | | | | | | | | | | | | | | | | | | | | | Non-accruing | | $ | 1,846 | | $ | 3,033 | | $ | 577 | | $ | 6,191 | | $ | - | | $ | 11,647 | | | Restructured accruing | | | 1,392 | | | - | | | - | | | - | | | 815 | | | 2,207 | | | Restructured non-accruing | | | 23 | | | 3,299 | | | 1,047 | | | 2,132 | | | 892 | | | 7,393 | | | Balance | | $ | 3,261 | | $ | 6,332 | | $ | 1,624 | | $ | 8,323 | | $ | 1,707 | | $ | 21,247 | | | | | | | | | | | | | | | | | | | | | | | | Total impaired loans | | | | | | | | | | | | | | | | | | | | | Non-accruing | | $ | 4,360 | | $ | 3,033 | | $ | 10,796 | | $ | 10,510 | | $ | - | | $ | 28,699 | | | Restructured accruing | | | 4,373 | | | - | | | - | | | 1,503 | | | 4,234 | | | 10,110 | | | Restructured non-accruing | | | 251 | | | 3,299 | | | 1,047 | | | 3,171 | | | 2,196 | | | 9,964 | | | Balance | | $ | 8,984 | | $ | 6,332 | | $ | 11,843 | | $ | 15,184 | | $ | 6,430 | | $ | 48,773 | | | | | | | | | | | | | | | | | | | | | | | | Unpaid principal balance in total impaired loans | | $ | 11,506 | | $ | 21,590 | | $ | 15,405 | | $ | 17,928 | | $ | 6,904 | | $ | 73,333 | | | | | December 31, 2012 | | | | | | | | Commercial Real Estate | | | | | Total Recorded | | | | | | | | | | | | | | Commercial | | All | | Investment in | | | | | | | | Commercial | | Commercial | | Owner | | Other | | Impaired | | | (In thousands) | | Commercial | | AD&C | | Investor R/E | | Occupied R/E | | Loans | | Loans | | | Average impaired loans for the period | | $ | 8,659 | | $ | 12,270 | | $ | 13,838 | | $ | 16,172 | | $ | 6,499 | | $ | 57,438 | | | Contractual interest income due on impaired loans during the period | | $ | 527 | | $ | 1,222 | | $ | 1,181 | | $ | 1,391 | | $ | 112 | | | | | | Interest income on impaired loans recognized on a cash basis | | $ | 121 | | $ | 323 | | $ | 175 | | $ | 420 | | $ | 82 | | | | | | Interest income on impaired loans recognized on an accrual basis | | $ | 257 | | $ | - | | $ | - | | $ | 102 | | $ | 201 | | | | | Credit Quality The following tables provide information on the credit quality of the loan portfolio by segment at the dates indicated: | | | September 30, 2013 | | | | | | | | Commercial Real Estate | | | | | | | | Residential Real Estate | | | | | | | | | | | | | | | | | Commercial | | | | | | | | | | | | | | | | | | | | | | | Commercial | | Commercial | | Owner | | | | | | | | Residential | | Residential | | | | | | (In thousands) | | Commercial | | AD&C | | Investor R/E | | Occupied R/E | | Leasing | | Consumer | | Mortgage | | Construction | | Total | | | Non-performing loans and assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Non-accrual loans and leases | | $ | 4,050 | | $ | 5,086 | | $ | 6,877 | | $ | 4,202 | | $ | - | | $ | 2,004 | | $ | 5,643 | | $ | 2,327 | | $ | 30,189 | | | Loans and leases 90 days past due | | | - | | | - | | | - | | | - | | | - | | | 10 | | | - | | | - | | | 10 | | | Restructured loans and leases | | | 2,512 | | | - | | | 852 | | | 1,183 | | | - | | | 29 | | | 3,478 | | | - | | | 8,054 | | | Total non-performing loans and leases | | | 6,562 | | | 5,086 | | | 7,729 | | | 5,385 | | | - | | | 2,043 | | | 9,121 | | | 2,327 | | | 38,253 | | | Other real estate owned | | | 408 | | | - | | | - | | | - | | | - | | | - | | | 1,254 | | | - | | | 1,662 | | | Total non-performing assets | | $ | 6,970 | | $ | 5,086 | | $ | 7,729 | | $ | 5,385 | | $ | - | | $ | 2,043 | | $ | 10,375 | | $ | 2,327 | | $ | 39,915 | | | | | December 31, 2012 | | | | | | | | Commercial Real Estate | | | | | | | | Residential Real Estate | | | | | | | | | | | | | | | | | Commercial | | | | | | | | | | | | | | | | | | | | | | | Commercial | | Commercial | | Owner | | | | | | | | Residential | | Residential | | | | | | (In thousands) | | Commercial | | AD&C | | Investor R/E | | Occupied R/E | | Leasing | | Consumer | | Mortgage | | Construction | | Total | | | Non-performing loans and assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Non-accrual loans and leases | | $ | 4,611 | | $ | 6,332 | | $ | 11,843 | | $ | 13,681 | | $ | 865 | | $ | 2,410 | | $ | 4,681 | | $ | 3,125 | | $ | 47,548 | | | Loans and leases 90 days past due | | | 24 | | | - | | | - | | | 209 | | | - | | | 14 | | | - | | | - | | | 247 | | | Restructured loans and leases | | | 4,373 | | | - | | | - | | | 1,503 | | | - | | | 31 | | | 4,203 | | | - | | | 10,110 | | | Total non-performing loans and leases | | | 9,008 | | | 6,332 | | | 11,843 | | | 15,393 | | | 865 | | | 2,455 | | | 8,884 | | | 3,125 | | | 57,905 | | | Other real estate owned | | | 1,829 | | | - | | | 220 | | | 2,396 | | | - | | | - | | | 1,401 | | | 80 | | | 5,926 | | | Total non-performing assets | | $ | 10,837 | | $ | 6,332 | | $ | 12,063 | | $ | 17,789 | | $ | 865 | | $ | 2,455 | | $ | 10,285 | | $ | 3,205 | | $ | 63,831 | | | | | September 30, 2013 | | | | | | | | Commercial Real Estate | | | | | | | | Residential Real Estate | | | | | | | | | | | | | | | | | Commercial | | | | | | | | | | | | | | | | | | | | | | | Commercial | | Commercial | | Owner | | | | | | | | Residential | | Residential | | | | | | (In thousands) | | Commercial | | AD&C | | Investor R/E | | Occupied R/E | | Leasing | | Consumer | | Mortgage | | Construction | | Total | | | Past due loans and leases | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 31-60 days | | $ | 4,989 | | $ | - | | $ | 5,901 | | $ | 3,540 | | $ | - | | $ | 713 | | $ | 5,985 | | $ | - | | $ | 21,128 | | | 61-90 days | | | 984 | | | 382 | | | 78 | | | 5,022 | | | - | | | 596 | | | - | | | - | | | 7,062 | | | > 90 days | | | - | | | - | | | - | | | - | | | - | | | 10 | | | - | | | - | | | 10 | | | Total past due | | | 5,973 | | | 382 | | | 5,979 | | | 8,562 | | | - | | | 1,319 | | | 5,985 | | | - | | | 28,200 | | | Non-accrual loans and leases | | | 4,050 | | | 5,086 | | | 6,877 | | | 4,202 | | | - | | | 2,004 | | | 5,643 | | | 2,327 | | | 30,189 | | | Loans aquired with deteriorated credit quality | | | 1,655 | | | - | | | 1,598 | | | 2,635 | | | - | | | - | | | - | | | - | | | 5,888 | | | Current loans | | | 320,992 | | | 153,271 | | | 503,575 | | | 553,951 | | | 962 | | | 365,441 | | | 583,552 | | | 115,989 | | | 2,597,733 | | | Total loans and leases | | $ | 332,670 | | $ | 158,739 | | $ | 518,029 | | $ | 569,350 | | $ | 962 | | $ | 368,764 | | $ | 595,180 | | $ | 118,316 | | $ | 2,662,010 | | | | | December 31, 2012 | | | | | | | | Commercial Real Estate | | | | | | | | Residential Real Estate | | | | | | | | | | | | | | | | | Commercial | | | | | | | | | | | | | | | | | | | | | | | Commercial | | Commercial | | Owner | | | | | | | | Residential | | Residential | | | | | | (In thousands) | | Commercial | | AD&C | | Investor R/E | | Occupied R/E | | Leasing | | Consumer | | Mortgage | | Construction | | Total | | | Past due loans and leases | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 31-60 days | | $ | 2,138 | | $ | - | | $ | 2,020 | | $ | 1,556 | | $ | 7 | | $ | 496 | | $ | 5,443 | | $ | - | | $ | 11,660 | | | 61-90 days | | | 212 | | | - | | | - | | | 1,809 | | | 68 | | | 101 | | | 1,603 | | | - | | | 3,793 | | | > 90 days | | | 24 | | | - | | | - | | | 209 | | | - | | | 14 | | | - | | | - | | | 247 | | | Total past due | | | 2,374 | | | - | | | 2,020 | | | 3,574 | | | 75 | | | 611 | | | 7,046 | | | - | | | 15,700 | | | Non-accrual loans and leases | | | 4,611 | | | 6,332 | | | 11,843 | | | 13,681 | | | 865 | | | 2,410 | | | 4,681 | | | 3,125 | | | 47,548 | | | Loans aquired with deteriorated credit quality | | | 1,978 | | | 332 | | | 949 | | | 3,941 | | | - | | | - | | | - | | | - | | | 7,200 | | | Current loans | | | 337,745 | | | 145,269 | | | 442,076 | | | 550,314 | | | 2,481 | | | 353,969 | | | 511,637 | | | 117,189 | | | 2,460,680 | | | Total loans and leases | | $ | 346,708 | | $ | 151,933 | | $ | 456,888 | | $ | 571,510 | | $ | 3,421 | | $ | 356,990 | | $ | 523,364 | | $ | 120,314 | | $ | 2,531,128 | | The following tables provide information by credit risk rating indicators for each segment of the commercial loan portfolio for the dates indicated: | | | September 30, 2013 | | | | | | | | Commercial Real Estate | | | | | | | | | | | | | | | | | Commercial | | | | | | | | | | | Commercial | | Commercial | | Owner | | | | | | (In thousands) | | Commercial | | AD&C | | Investor R/E | | Occupied R/E | | Total | | | Pass | | $ | 292,973 | | $ | 151,546 | | $ | 493,523 | | $ | 528,610 | | $ | 1,466,652 | | | Special Mention | | | 19,345 | | | 109 | | | 1,713 | | | 17,300 | | | 38,467 | | | Substandard | | | 20,063 | | | 7,084 | | | 22,750 | | | 23,440 | | | 73,337 | | | Doubtful | | | 289 | | | - | | | 43 | | | - | | | 332 | | | Total | | $ | 332,670 | | $ | 158,739 | | $ | 518,029 | | $ | 569,350 | | $ | 1,578,788 | | | | | | December 31, 2012 | | | | | | | | Commercial Real Estate | | | | | | | | | | | | | | | | | Commercial | | | | | | | | | | | Commercial | | Commercial | | Owner | | | | | | (In thousands) | | Commercial | | AD&C | | Investor R/E | | Occupied R/E | | Total | | | Pass | | $ | 305,348 | | $ | 141,802 | | $ | 405,448 | | $ | 520,844 | | $ | 1,373,442 | | | Special Mention | | | 13,603 | | | 1,793 | | | 21,963 | | | 17,262 | | | 54,621 | | | Substandard | | | 26,091 | | | 8,338 | | | 28,885 | | | 32,613 | | | 95,927 | | | Doubtful | | | 1,666 | | | - | | | 592 | | | 791 | | | 3,049 | | | Total | | $ | 346,708 | | $ | 151,933 | | $ | 456,888 | | $ | 571,510 | | $ | 1,527,039 | | Homogeneous loan pools do not have individual loans subjected to internal risk ratings therefore, the credit indicator applied to these pools is based on their delinquency status. The following tables provide information by credit risk rating indicators for those remaining segments of the loan portfolio at the dates indicated: | | | September 30, 2013 | | | | | | | | | | | Residential Real Estate | | | | | | | | | | | | | | Residential | | Residential | | | | | | (In thousands) | | Leasing | | Consumer | | Mortgage | | Construction | | Total | | | Performing | | $ | 962 | | $ | 366,721 | | $ | 586,059 | | $ | 115,989 | | $ | 1,069,731 | | | Non-performing: | | | | | | | | | | | | | | | | | | 90 days past due | | | - | | | 10 | | | - | | | - | | | 10 | | | Non-accruing | | | - | | | 2,004 | | | 5,643 | | | 2,327 | | | 9,974 | | | Restructured loans and leases | | | - | | | 29 | | | 3,478 | | | - | | | 3,507 | | | Total | | $ | 962 | | $ | 368,764 | | $ | 595,180 | | $ | 118,316 | | $ | 1,083,222 | | | | | December 31, 2012 | | | | | | | | | | | Residential Real Estate | | | | | | | | | | | | | | Residential | | Residential | | | | | | (In thousands) | | Leasing | | Consumer | | Mortgage | | Construction | | Total | | | Performing | | $ | 2,556 | | $ | 354,535 | | $ | 514,480 | | $ | 117,189 | | $ | 988,760 | | | Non-performing: | | | | | | | | | | | | | | | | | | 90 days past due | | | - | | | 14 | | | - | | | - | | | 14 | | | Non-accruing | | | 865 | | | 2,410 | | | 4,681 | | | 3,125 | | | 11,081 | | | Restructured loans and leases | | | - | | | 31 | | | 4,203 | | | - | | | 4,234 | | | Total | | $ | 3,421 | | $ | 356,990 | | $ | 523,364 | | $ | 120,314 | | $ | 1,004,089 | During the nine months ended September 30, 2013, the Company restructured $1.6 million in loans. Modifications consisted principally of interest rate concessions. No modifications resulted in the reduction of the principal in the associated loan balances. Restructured loans are subject to periodic credit reviews to determine the necessity and adequacy of a specific loan loss allowance based on the collectability of the recorded investment in the restructured loan. Loans restructured during 2013 did not require significant specific reserves at September 30, 2013. For the year ended December 31, 2012, the Company restructured $4.9 million in loans. Modifications consisted principally of interest rate concessions and no modifications resulted in the reduction of the recorded investment in the associated loan balances. Loans restructured during 2012 had specific reserves of $1.2 million at December 31, 2012. Commitments to lend additional funds on loans that have been restructured at September 30, 2013 and December 31, 2012 amounted to $5.3 million and $5.1 million, respectively. The following table provides the amounts of the restructured loans at the date of restructuring for specific segments of the loan portfolio during the period indicated: | | | For the Nine Months Ended September 30, 2013 | | | | | | | | Commercial Real Estate | | | | | | | | | | | | | | | | | | | | Commercial | | All | | | | | | | | | | | Commercial | | Commercial | | Owner | | Other | | | | | | (In thousands) | | Commercial | | AD&C | | Investor R/E | | Occupied R/E | | Loans | | Total | | | Troubled debt restructurings | | | | | | | | | | | | | | | | | | | | | Restructured accruing | | $ | 483 | | $ | - | | $ | 852 | | $ | - | | $ | - | | $ | 1,335 | | | Restructured non-accruing | | | 221 | | | - | | | - | | | - | | | - | | | 221 | | | Balance | | $ | 704 | | $ | - | | $ | 852 | | $ | - | | $ | - | | $ | 1,556 | | | | | | | | | | | | | | | | | | | | | | | | Specific allowance | | $ | 22 | | $ | - | | $ | - | | $ | - | | $ | - | | $ | 22 | | | | | | | | | | | | | | | | | | | | | | | | Restructured and subsequently defaulted | | $ | - | | $ | - | | $ | - | | $ | - | | $ | - | | $ | - | | | | | For the Year Ended December 31, 2012 | | | | | | | | Commercial Real Estate | | | | | | | | | | | | | | | | | | | | Commercial | | All | | | | | | | | | | | Commercial | | Commercial | | Owner | | Other | | | | | | (In thousands) | | Commercial | | AD&C | | Investor R/E | | Occupied R/E | | Loans | | Total | | | Troubled debt restructurings | | | | | | | | | | | | | | | | | | | | | Restructured accruing | | $ | 2,600 | | $ | - | | $ | - | | $ | 1,014 | | $ | - | | $ | 3,614 | | | Restructured non-accruing | | | - | | | - | | | - | | | - | | | 1,304 | | | 1,304 | | | Balance | | $ | 2,600 | | $ | - | | $ | - | | $ | 1,014 | | $ | 1,304 | | $ | 4,918 | | | | | | | | | | | | | | | | | | | | | | | | Specific allowance | | $ | 552 | | $ | - | | $ | - | | $ | 204 | | $ | 467 | | $ | 1,223 | | | | | | | | | | | | | | | | | | | | | | | | Restructured and subsequently defaulted | | $ | - | | $ | - | | $ | - | | $ | - | | $ | - | | $ | - | | Changes in the accretable yield related to loans acquired with evidence of deteriorated credit quality are as follows: | (In thousands) | | Amount | | | Balance at January 1, 2013 | | $ | 693 | | | Accretion recognized to date | | | (333) | | | Net reclassification from accretable to non-accretable | | | - | | | Balance at September 30, 2013 | | $ | 360 | | Other Real Estate Owned Other real estate owned totaled $1.7 million and $5.9 million at September 30, 2013 and December 31, 2012. |