Allowance for Loan Losses and Credit Quality Information (Tables)

6 Months Ended

Jun. 30, 2014

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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 the three and six months ended June 30, 2014 and 2013:

	Commercial			Owner - Occupied Commercial			Commercial Mortgages			Construction			Residential			Consumer			Estimation/ Complexity Risk (1)		Total
	(in thousands)
Three months ended June 30, 2014
Allowance for loan losses
Beginning balance	$	12,404		$	8,789		$	7,363		$	2,716		$	2,765		$	6,249		$	1,042	$	41,328
Charge-offs		(382	)		(124	)		—			—			(163	)		(490	)		—		(1,159	)
Recoveries		483			161			2			177			25			314			—		1,162
Provision (credit)		841			(840	)		252			(574	)		132			226			13		50
Ending balance	$	13,346		$	7,986		$	7,617		$	2,319		$	2,759		$	6,299		$	1,055	$	41,381
Six months ended June 30, 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		(1,495	)		(321	)		(160	)		(88	)		(527	)		(1,723	)		—		(4,314	)
Recoveries		807			167			39			184			43			531			—		1,771
Provision (credit)		1,283			502			806			(1,103	)		165			997			30		2,680
Ending balance	$	13,346		$	7,986		$	7,617		$	2,319		$	2,759		$	6,299		$	1,055	$	41,381
Period-end allowance allocated to:
Loans individually evaluated for impairment	$	1,881		$	1,157		$	307		$	—		$	872		$	184		$	—	$	4,401
Loans collectively evaluated for impairment		11,465			6,829			7,310			2,319			1,887			6,115			1,055		36,980
Ending balance	$	13,346		$	7,986		$	7,617		$	2,319		$	2,759		$	6,299		$	1,055	$	41,381
Period-end loan balances evaluated for:
Loans individually evaluated for impairment	$	4,109		$	4,928		$	13,483		$	—		$	17,743		$	5,577		$	—	$	45,840	(2)
Loans collectively evaluated for impairment		853,245			773,329			749,607			119,333			193,180			306,943			—	$	2,995,637
Ending balance	$	857,354		$	778,257		$	763,090		$	119,333		$	210,923		$	312,520		$	—	$	3,041,477	(3)

	Commercial			Owner - Occupied Commercial			Commercial Mortgages			Construction			Residential			Consumer			Estimation/ Complexity Risk (1)			Total
	(in thousands)
Three months ended June 30, 2013
Allowance for loan losses
Beginning balance	$	12,768		$	6,338		$	7,193		$	6,785		$	3,281		$	5,741		$	842		$	42,948
Charge-offs		(883	)		(36	)		(24	)		(1,321	)		(255	)		(1,516	)		—			(4,035	)
Recoveries		401			33			106			70			23			268			—			901
Provision (credit)		681			1,714			(930	)		(1,582	)		181			1,644			(28	)		1,680
Ending balance	$	12,967		$	8,049		$	6,345		$	3,952		$	3,230		$	6,137		$	814		$	41,494
Six months ended June 30, 2013
Allowance for loan losses
Beginning balance	$	13,663		$	6,108		$	8,079		$	6,456		$	3,124		$	5,631		$	861		$	43,922
Charge-offs		(1,139	)		(37	)		(1,721	)		(1,340	)		(695	)		(2,810	)		—			(7,742	)
Recoveries		627			45			109			85			41			496			—			1,403
Provision (credit)		(184	)		1,933			(122	)		(1,249	)		760			2,820			(47	)		3,911
Ending balance	$	12,967		$	8,049		$	6,345		$	3,952		$	3,230		$	6,137		$	814		$	41,494
Period-end allowance allocated to:
Loans individually evaluated for impairment	$	2,171		$	977		$	1,995		$	—		$	1,006		$	12		$	—		$	6,161
Loans collectively evaluated for impairment		10,796			7,072			4,350			3,952			2,224			6,125			814			35,333
Ending balance	$	12,967		$	8,049		$	6,345		$	3,952		$	3,230		$	6,137		$	814		$	41,494
Period-end loan balances evaluated for:
Loans individually evaluated for impairment	$	6,048		$	12,681		$	10,791		$	646		$	16,961		$	4,925		$	—		$	52,052	(2)
Loans collectively evaluated for impairment		733,581			755,261			677,442			124,892			216,755			280,314			—			2,788,245
Ending balance	$	739,629		$	767,942		$	688,233		$	125,538		$	233,716		$	285,239		$	—		$	2,840,297	(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 June 30, 2014, represents accruing troubled debt restructured (“TDR”) 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:

June 30, 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	$	560		$	—		$	—		$	560		$	853,283		$	3,511		$	857,354
Owner-Occupied commercial		1,953			—			—			1,953			771,376			4,928			778,257
Commercial mortgages		—			—			—			—			749,699			13,391			763,090
Construction		—			—			—			—			119,333			—			119,333
Residential		2,395			41			—			2,436			200,002			8,485			210,923
Consumer		616			134			—			750			308,024			3,746			312,520
Total	$	5,524		$	175		$	—		$	5,699		$	3,001,717		$	34,061		$	3,041,477
% of Total Loans		0.18	%		0.01	%		—	%		0.19	%		98.69	%		1.12	%		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 June 30, 2014 and December 31, 2013:

June 30, 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	$	4,109	$	1,592	$	2,517	$	1,881	$	5,131	$	5,115
Owner-Occupied commercial		4,928		2,615		2,313		1,157		5,718		8,338
Commercial mortgages		13,483		8,210		5,273		307		18,268		11,523
Construction		—		—		—		—		—		630
Residential		17,743		10,090		7,653		872		20,220		17,666
Consumer		5,577		4,399		1,178		184		6,348		5,170
Total	$	45,840	$	26,906	$	18,934	$	4,401	$	55,685	$	48,442

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.

Analysis of Problem Loans, by Credit Risk Profile Using Internally Assigned Risk Ratings

The following tables provide an analysis of loans by credit risk profile using internally assigned risk ratings, as of June 30, 2014 and December 31, 2013

	Commercial				Owner-Occupied Commercial				Commercial Mortgages				Construction				Total Commercial
																	June 30, 2014					December 31, 2013
(in thousands)	June 30, 2014		Dec. 31 2013		June 30, 2014		Dec. 31 2013		June 30, 2014		Dec. 31 2013		June 30, 2014		Dec. 31 2013
																	Amount		%			Amount		%
Risk Rating:
Special mention Substandard:	$	10,037	$	12,566	$	7,186	$	4,747	$	9,249	$	2,092	$	300	$	226	$	26,772				$	19,631
Accrual		63,462		56,806		45,524		45,181		13,881		8,146		2,130		3,599		124,997					113,732
Nonaccrual		1,592		2,362		2,615		5,185		8,210		2,784		—		1,158		12,417					11,489
Doubtful / Nonaccrual		2,517		2,641		2,313		12		5,273		5,877		—		—		10,103					8,530
Total Special Mention, Substandard and Doubtful		77,608		74,375		57,638		55,125		36,613		18,899		2,430		4,983		174,289		7	%		153,382		6	%
Pass		779,746		736,507		720,619		731,235		726,477		706,294		116,903		101,091		2,343,745		93	%		2,275,127		94
Total Commercial Loans	$	857,354	$	810,882	$	778,257	$	786,360	$	763,090	$	725,193	$	119,333	$	106,074	$	2,518,034		100	%	$	2,428,509		100	%

Schedule of Consumer Credit Exposure

Consumer credit exposure credit risk profile based on payment activity:

	Residential				Consumer				Total Residential and Consumer
	June 30, 2014		Dec. 31 2013		June 30, 2014		Dec. 31 2013		June 30, 2014					December 31, 2013
(in thousands)									Amount		Percent			Amount		Percent
Nonperforming (1)	$	17,743	$	17,852	$	5,577	$	5,411	$	23,320		4	%	$	23,263		4	%
Performing		193,180		203,668		306,943		296,823		500,123		96	%		500,491		96
Total	$	210,923	$	221,520	$	312,520	$	302,234	$	523,443		100	%	$	523,754		100	%

(1) Includes $11.1 million as of June 30, 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 six months ended June 30, 2014 and 2013:

(In Thousands)	Three Months Ended June 30, 2014		Three Months Ended June 30, 2013		Six Months Ended June 30, 2014		Six Months Ended June 30, 2013
Commercial	$	121	$	24	$	121	$	24
Commercial mortgages		—		826		—		1,061
Residential		1,565		173		1,844		599
Consumer		152		44		515		717
Total	$	1,838	$	1,067	$	2,480	$	2,401