Allowance for Loan Losses and Credit Quality Information (Tables)

3 Months Ended

Mar. 31, 2014

Schedule of Allowance for Loan Losses and Loan Balances

The following tables provide the activity of our allowance for loan losses and loan balances for three months ended March 31, 2014 and 2013:


	Commercial			Owner - Occupied Commercial			Commercial Mortgages			Construction			Residential			Consumer			Estimation/ Complexity Risk (1)		Total
	(in thousands)
Three months ended March 31, 2014
Allowance for loan losses
Beginning balance	$	12,751		$	7,638		$	6,932		$	3,326		$	3,078		$	6,494		$	1,025	$	41,244
Charge-offs		(1,113	)		(197	)		(160	)		(88	)		(364	)		(1,233	)		—		(3,155	)
Recoveries		324			6			37			7			18			217			—		609
Provision (credit)		442			1,342			554			(529	)		33			771			17		2,630

Ending balance	$	12,404		$	8,789		$	7,363		$	2,716		$	2,765		$	6,249		$	1,042	$	41,328

Period-end allowance allocated to:
Loans individually evaluated for impairment	$	1,865		$	1,191		$	1,019		$	—		$	807		$	186		$	—	$	5,068
Loans collectively evaluated for impairment		10,539			7,598			6,344			2,716			1,958			6,063			1,042		36,260

Ending balance	$	12,404		$	8,789		$	7,363		$	2,716		$	2,765		$	6,249		$	1,042	$	41,328

Period-end loan balances evaluated for:
Loans individually evaluated for impairment	$	4,583		$	6,318		$	15,786		$	1,070		$	18,413		$	5,537		$	—	$	51,707	(2)
Loans collectively evaluated for impairment		833,598			792,895			730,543			100,415			199,740			295,774			—	$	2,952,965

Ending balance	$	838,181		$	799,213		$	746,329		$	101,485		$	218,153		$	301,311		$	—	$	3,004,672	(3)


	Commercial			Owner Occupied Commercial			Commercial Mortgages			Construction			Residential			Consumer			Estimation/ Complexity Risk (1)			Total
	(In Thousands)
Three months ended March 31, 2013
Allowance for loan losses
Beginning balance	$	13,663		$	6,108		$	8,079		$	6,456		$	3,124		$	5,631		$	861		$	43,922
Charge-offs		(256	)		(1	)		(1,697	)		(19	)		(440	)		(1,294	)		—			(3,707	)
Recoveries		226			12			3			15			18			228			—			502
Provision		(865	)		219			808			333			579			1,176			(19	)		2,231

Ending balance	$	12,768		$	6,338		$	7,193		$	6,785		$	3,281		$	5,741		$	842		$	42,948

Period-end allowance allocated to:
Loans individually evaluated for impairment	$	868		$	47		$	2,000		$	—		$	922		$	12		$	—		$	3,849
Loans collectively evaluated for impairment		11,900			6,291			5,193			6,785			2,359			5,729			842			39,099

Ending balance	$	12,768		$	6,338		$	7,193		$	6,785		$	3,281		$	5,741		$	842		$	42,948

Period-end loan balances evaluated for:
Loans individually evaluated for impairment	$	4,991		$	13,263		$	11,240		$	1,216		$	19,578		$	6,210		$	—		$	56,498	(2)
Loans collectively evaluated for impairment		727,831			752,961			622,510			132,265			218,276			277,096			—			2,730,939

Ending balance	$	732,822		$	766,224		$	633,750		$	133,481		$	237,854		$	283,306		$	—		$	2,787,437	(3)

(1)	Represents the portion of the allowance for loan losses established to account for the inherent complexity and uncertainty of estimates.

(2)	The difference between this amount and nonaccruing loans at March 31, 2013, represents accruing troubled debt restructured loans which are considered to be impaired loans.

(3)	Ending loan balances do not include deferred costs.

Summary of Nonaccrual and Past Due Loans

The following tables show our nonaccrual and past due loans at the dates indicated:


March 31, 2014 (In Thousands)	30–59 Days Past Due and Still Accruing			60–89 Days Past Due and Still Accruing			Greater Than 90 Days Past Due and Still Accruing			Total Past Due And Still Accruing			Accruing Current Balances			Nonaccrual Loans			Total Loans
Commercial	$	788		$	—		$	—		$	788		$	833,364		$	4,029		$	838,181
Owner-Occupied commercial		—			—			—			—			792,895			6,318			799,213
Commercial mortgages		—			—			—			—			730,637			15,692			746,329
Construction		—			—			—			—			100,415			1,070			101,485
Residential		1,788			438			403			2,629			206,153			9,371			218,153
Consumer		736			353			—			1,089			296,574			3,648			301,311

Total	$	3,312		$	791		$	403		$	4,506		$	2,960,038		$	40,128		$	3,004,672

% of Total Loans		0.11	%		0.03	%		0.01	%		0.15	%		98.51	%		1.34	%		100	%


December 31, 2013 (In Thousands)	30–59 Days Past Due and Still Accruing			60–89 Days Past Due and Still Accruing			Greater Than 90 Days Past Due and Still Accruing			Total Past Due And Still Accruing			Accruing Current Balances			Nonaccrual Loans			Total Loans
Commercial	$	1,447		$	—		$	—		$	1,447		$	805,132		$	4,303		$	810,882
Owner-Occupied commercial		538			—			—			538			780,625			5,197			786,360
Commercial mortgages		83			1,049			—			1,132			715,496			8,565			725,193
Construction		—			—			—			—			104,916			1,158			106,074
Residential		1,952			1,348			533			3,833			209,255			8,432			221,520
Consumer		1,095			177			—			1,272			297,669			3,293			302,234

Total	$	5,115		$	2,574		$	533		$	8,222		$	2,913,093		$	30,948		$	2,952,263

% of Total Loans		0.17	%		0.09	%		0.02	%		0.28	%		98.67	%		1.05	%		100	%

Analysis of Impaired Loans

The following tables provide an analysis of our impaired loans at March 31, 2014 and December 31, 2013:


March 31, 2014 (In Thousands)	Ending Loan Balances		Loans with No Specific Reserve (1)		Loans with Specific Reserve		Related Specific Reserve		Contractual Principal Balances		Average Loan Balances
Commercial	$	4,583	$	2,347	$	2,236	$	1,865	$	6,146	$	5,292
Owner-Occupied commercial		6,318		4,564		1,754		1,191		6,906		10,005
Commercial mortgages		15,786		10,513		5,273		1,019		20,587		11,074
Construction		1,070		1,070		—		—		1,563		873
Residential		18,413		10,994		7,419		807		21,030		18,033
Consumer		5,537		4,153		1,384		186		6,218		5,297

Total	$	51,707	$	33,641	$	18,066	$	5,068	$	62,450	$	50,574


December 31, 2013 (In Thousands)	Ending Loan Balances		Loans with No Specific Reserve (1)		Loans with Specific Reserve		Related Specific Reserve		Contractual Principal Balances		Average Loan Balances
Commercial	$	5,003	$	2,362	$	2,641	$	1,781	$	13,013	$	5,347
Owner-Occupied commercial		5,197		5,184		12		12		8,293		11,542
Commercial mortgages		8,661		2,784		5,877		1,987		16,566		10,444
Construction		1,158		1,158		—		—		1,563		968
Residential		17,852		9,750		8,103		989		20,153		18,047
Consumer		5,411		4,767		644		134		6,056		5,455

Total	$	43,282	$	26,005	$	17,277	$	4,903	$	65,644	$	51,803

(1)	Reflects loan balances at or written down to their remaining book balance.

Schedule of Commercial Credit Exposure

The following tables provide an analysis of loans by credit risk profile using internally assigned risk ratings, as of March 31, 2014 and December 31, 2013


	Commercial				Owner-Occupied Commercial				Commercial Mortgages				Construction				Total Commercial
																	March 31,					December 31,
	Mar. 30		Dec. 31		Mar. 30		Dec. 31		Mar. 30		Dec. 31		Mar. 30		Dec. 31		2014					2013
	2014		2013		2014		2013		2014		2013		2014		2013		Amount		%			Amount		%
Risk Rating:
Special mention	$	14,696	$	12,566	$	3,967	$	4,747	$	501	$	2,092	$	260	$	226	$	19,424				$	19,631
Substandard:
Accrual		58,610		56,806		44,357		45,181		13,180		8,146		3,587		3,599		119,734					113,732
Nonaccrual		2,347		2,362		4,564		5,185		10,513		2,784		1,070		1,158		18,494					11,489
Doubtful / Nonaccrual		2,236		2,641		1,754		12		5,273		5,877		—		—		9,263					8,530

Total Special Mention, Substandard and Doubtful		77,889		74,375		54,642		55,125		29,467		18,899		4,917		4,983		166,915		7	%		153,382		6	%
Pass		760,292		736,507		744,571		731,235		716,862		706,294		96,568		101,091		2,318,293		93	%		2,275,127		94

Total Commercial Loans	$	838,181	$	810,882	$	799,213	$	786,360	$	746,329	$	725,193	$	101,485	$	106,074	$	2,485,208		100	%	$	2,428,509		100	%

Schedule of Consumer Credit Exposure

Consumer credit exposure credit risk profile based on payment activity (dollars in thousands):


	Residential				Consumer				Total Residential and Consumer
	Mar 31.		Dec. 31		Mar 31.		Dec. 31		March 31, 2014					December 31, 2013
	2014		2013		2014		2013		Amount		Percent			Amount		Percent
Nonperforming (1)	$	18,413	$	17,852	$	5,537	$	5,411	$	23,950		5	%	$	23,263		4	%
Performing		199,740		203,668		295,774		296,823		495,514		95	%		500,491		96

Total	$	218,153	$	221,520	$	301,311	$	302,234	$	519,464		100	%	$	523,754		100	%

(1)	Includes $9.0 million as of March 31, 2014 and $11.5 million as of December 31, 2013 of troubled debt restructured mortgages and home equity installment loans that are performing in accordance with modified terms and are accruing interest.

Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated

The following table presents loans identified as TDRs during the three months ended March 31, 2014 and 2013:


(In Thousands)	Three Months Ended March 31, 2014		Three Months Ended March 31, 2013
Commercial	$	—	$	—
Commercial mortgages		—		235
Construction		—		—
Residential		279		—
Consumer		363		474

Total	$	642	$	709