XML 30 R26.htm IDEA: XBRL DOCUMENT v2.4.0.8
Loans Receivable (Tables)
 9 Months Ended
Sep. 30, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Recorded investment balance and related allowance for loan losses of accruing and non-accruing TDRs
The recorded investment balance and related allowance for loan losses of accruing and non-accruing TDRs as of September 30, 2013 and December 31, 2012 were as follows:
 
September 30, 2013
 
December 31, 2012
 
Accruing
TDRs
 
Non-Accruing
TDRs
 
Accruing
TDRs
 
Non-Accruing
TDRs
 
(In thousands)
Originated TDRs
$
19,590

 
$
3,983

 
$
15,039

 
$
9,311

Allowance for loan losses on originated TDRs
3,513

 
141

 
2,131

 
1,994

Purchased other TDRs
5,693

 
10

 
1,437

 
7

Allowance for loan losses on purchased other TDRs
958

 
3

 
76

 
2
Troubled debt restructurings on financing receivables
Originated loans that were modified as TDRs during the three and nine months ended September 30, 2013 and 2012 are set forth in the following tables:

 
Three Months Ended September 30,
 
2013
 
2012
 
Number of
Contracts
 
Outstanding
Principal Balance
(1)(2)
 
Number of
Contracts
 
Outstanding
Principal
Balance (1)(2)
 
(Dollars in thousands)
Commercial business:
 
 
 
 
 
 
 
Commercial and industrial
10

 
$
1,582

 
7

 
$
1,315

Owner-occupied commercial real estate
1

 
198

 
2

 
1,052

Total commercial business
11

 
1,780

 
9

 
2,367

Real estate construction and land development:
 
 
 
 
 
 
 
One-to-four family residential
8

 
541

 
—

 
—

Total real estate construction and land development
8

 
541

 
—

 
—

Consumer
—

 
—

 
—

 
—

Total originated TDRs
19

 
$
2,321

 
9

 
$
2,367


 
Nine Months Ended September 30,
 
2013
 
2012
 
Number of
Contracts
(1)
 
Outstanding
Principal Balance
(1)(2)
 
Number of
Contracts
(1)
 
Outstanding
Principal
Balance (1)(2)
 
(Dollars in thousands)
Commercial business:
 
 
 
 
 
 
 
Commercial and industrial
25

 
$
5,287

 
23

 
$
4,524

Owner-occupied commercial real estate
1

 
198

 
3

 
1,247

Total commercial business
26

 
5,485

 
26

 
5,771

One-to-four family residential
1

 
254

 
—

 
—

Real estate construction and land development:
 
 
 
 
 
 
 
One-to-four family residential
23

 
3,343

 
1

 
180

Five or more family residential and commercial properties
1

 
2,385

 
—

 
—

Total real estate construction and land development
24

 
5,728

 
1

 
180

Consumer
1

 
39

 
—

 
—

Total originated TDRs
52

 
$
11,506

 
27

 
$
5,951

(1)
Number of contracts and outstanding principal balance represent loans which have balances as of period end dates as certain loans may have been paid-down or charged-off during the three and nine months ended September 30, 2013 and 2012.
(2)
Includes subsequent payments after modifications and reflects the balance as of the end of the period. The Bank’s recorded investment in each loan at the date of modification did not change as a result of the modification as the Bank did not forgive any principal or interest balance as part of the modification.
Purchased impaired loans
The following tables reflect the outstanding balance at September 30, 2013 and December 31, 2012 of the purchased impaired loans by acquisition:
 
Cowlitz Bank
 
September 30, 2013
 
December 31, 2012
 
(In thousands)
Commercial business:
 
 
 
Commercial and industrial
$
14,267

 
$
21,624

Owner-occupied commercial real estate
12,668

 
17,157

Non-owner occupied commercial real estate
11,693

 
12,908

Total commercial business
38,628

 
51,689

One-to-four family residential
3,997

 
4,262

Real estate construction and land development:
 
 
 
One-to-four family residential
1,664

 
6,122

Five or more family residential and commercial properties
—

 
—

Total real estate construction and land development
1,664

 
6,122

Consumer
2,332

 
3,533

Gross purchased impaired covered loans
$
46,621

 
$
65,606

The total balance of subsequent advances on the purchased impaired covered loans was $5.1 million and $3.8 million as of September 30, 2013 and December 31, 2012, respectively. The Bank has the option to modify certain purchased covered loans which may terminate the FDIC shared-loss coverage on those modified loans. At both September 30, 2013 and December 31, 2012, the recorded investment balance of purchased impaired covered loans which are no longer covered under the FDIC shared-loss agreements was $1.7 million. The Bank continues to report these loans in the covered portfolio as they are in a pool and they continue to be accounted for under FASB ASC 310-30. The FDIC indemnification asset has been properly adjusted to reflect the change in the loan status.

 
Pierce Commercial Bank
 
September 30, 2013
 
December 31, 2012
 
(In thousands)
Commercial business:
 
 
 
Commercial and industrial
$
16,876

 
$
21,953

Owner-occupied commercial real estate
5,252

 
5,748

Non-owner occupied commercial real estate
4,924

 
7,802

Total commercial business
27,052

 
35,503

One-to-four family residential
4,081

 
3,303

Real estate construction and land development:
 
 
 
One-to-four family residential
2,403

 
3,375

Five or more family residential and commercial properties
470

 
820

Total real estate construction and land development
2,873

 
4,195

Consumer
1,174

 
4,393

Gross purchased impaired non-covered loans
$
35,180

 
$
47,394


 
NCB
 
Valley
 
September 30, 2013 (1)
 
(In thousands)
Commercial business:
 
 
 
Commercial and industrial
$
1,594

 
$
883

Owner-occupied commercial real estate
1,862

 
512

Non-owner occupied commercial real estate
2,036

 
—

Total commercial business
5,492

 
1,395

One-to-four family residential
—

 
366

Real estate construction and land development:
 
 

Five or more family residential and commercial properties
609

 
432

Total real estate construction and land development
609

 
432

Consumer
83

 
1,449

Gross purchased impaired non-covered loans
$
6,184

 
$
3,642

(1)
The NCB Acquisition was completed on January 9, 2013 and the Valley Acquisition was completed on July 15, 2013.
Schedule of impaired purchased loans accretable yield
The following tables summarize the accretable yield on the purchased impaired loans resulting from the Cowlitz, Pierce, NCB and Valley Acquisitions for the three and nine months ended September 30, 2013 and 2012. As the NCB and Valley Acquisitions were completed in 2013, there are no balances for the three or nine months ended September 30, 2012.
    

Three Months Ended 
 September 30, 2013

Cowlitz
Bank

Pierce
Commercial
Bank

NCB (1)

Valley (1)
 
Total

(In thousands)
Balance at the beginning of period
$
13,269


$
7,724


$
639


$
—

 
$
21,632

Accretion
(931
)

(944
)

(110
)

(13
)
 
(1,998
)
Disposal and other
(3,270
)

(203
)

47


(58
)
 
(3,484
)
Change in accretable yield
1,873


880


289


271

 
3,313

Balance at the end of period
$
10,941


$
7,457


$
865


$
200

 
$
19,463

 
Nine Months Ended 
 September 30, 2013
 
Cowlitz
Bank
 
Pierce
Commercial
Bank
 
NCB (1)
 
Valley (1)
 
Total
 
(In thousands)
Balance at the beginning of period
$
14,286

 
$
7,352

 
$
—

 
$
—

 
$
21,638

Accretion
(3,394
)
 
(3,277
)
 
(200
)
 
(13
)
 
(6,884
)
Disposal and other
(2,768
)
 
1,859

 
31

 
(58
)
 
(936
)
Change in accretable yield
2,817

 
1,523

 
1,034

 
271

 
5,645

Balance at the end of period
$
10,941

 
$
7,457

 
$
865

 
$
200

 
$
19,463


 
Three Months Ended 
 September 30, 2012
 
Nine Months Ended 
 September 30, 2012
 
Cowlitz
Bank
 
Pierce
Commercial
Bank
 
Cowlitz
Bank
 
Pierce
Commercial
Bank
 
(In thousands)
Balance at the beginning of period
$
16,564

 
$
11,815

 
$
19,912

 
$
14,638

Accretion
(1,514
)
 
(1,578
)
 
(5,173
)
 
(4,734
)
Disposals and other
(535
)
 
(1,175
)
 
(921
)
 
(1,919
)
Change in accretable yield
882

 
873

 
1,579

 
1,950

Balance at the end of period
$
15,397

 
$
9,935

 
$
15,397

 
$
9,935


(1)
For the NCB Acquisition, the contractual cash flows were $8.5 million and the expected cash flows were $5.6 million, resulting in a non-accretable difference of $2.9 million. As the fair value of these purchased impaired loans at the January 9, 2013 NCB Acquisition date was $4.9 million, this provides an accretable yield of $745,000, which the Company included in the change in accretable yield in the quarter of acquisition.
For the Valley Acquisition, the contractual cash flows were $5.1 million and the expected cash flows were $4.4 million, resulting in a non-accretable difference of $692,000. As the fair value of these purchased impaired loans at the July 15, 2013 Valley Acquisition date was $4.1 million, this provides an accretable yield of $271,000, which the Company included in the change in accretable yield in the quarter of acquisition.
Originated Loans Receivable [Member]
  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Schedule of loans receivable
Originated loans receivable at September 30, 2013 and December 31, 2012 consisted of the following portfolio segments and classes:
 
September 30, 2013
 
December 31, 2012
 
(In thousands)
Commercial business:
 
 
 
Commercial and industrial
$
292,906

 
$
277,240

Owner-occupied commercial real estate
197,421

 
188,494

Non-owner occupied commercial real estate
347,391

 
265,835

Total commercial business
837,718

 
731,569

One-to-four family residential
39,902

 
38,848

Real estate construction and land development:
 
 
 
One-to-four family residential
20,054

 
25,175

Five or more family residential and commercial properties
38,704

 
52,075

Total real estate construction and land development
58,758

 
77,250

Consumer
28,029

 
28,914

Gross originated loans receivable
964,407

 
876,581

Net deferred loan fees
(2,515
)
 
(2,096
)
Originated loans receivable, net
961,892

 
874,485

Allowance for loan losses
(17,357
)
 
(19,125
)
Originated loans receivable, net of allowance for loan losses
$
944,535

 
$
855,360
Loans receivable by credit quality indicator
The following tables present the balance of the originated loans receivable by credit quality indicator as of September 30, 2013 and December 31, 2012.
 
September 30, 2013
 
Pass
 
OAEM
 
Substandard
 
Doubtful
 
Total
 
(In thousands)
Commercial business:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
271,774

 
$
2,533

 
$
17,327

 
$
1,272

 
$
292,906

Owner-occupied commercial real estate
189,060

 
2,889

 
5,472

 
—

 
197,421

Non-owner occupied commercial real estate
336,533

 
4,510

 
6,348

 
—

 
347,391

Total commercial business
797,367

 
9,932

 
29,147

 
1,272

 
837,718

One-to-four family residential
38,746

 
270

 
886

 
—

 
39,902

Real estate construction and land development:
 
 
 
 
 
 
 
 
 
One-to-four family residential
11,420

 
4,534

 
4,100

 
—

 
20,054

Five or more family residential and commercial properties
36,319

 
—

 
2,385

 
—

 
38,704

Total real estate construction and land development
47,739

 
4,534

 
6,485

 
—

 
58,758

Consumer
27,560

 
—

 
467

 
2

 
28,029

Gross originated loans
$
911,412

 
$
14,736

 
$
36,985

 
$
1,274

 
$
964,407


 
December 31, 2012
 
Pass
 
OAEM
 
Substandard
 
Doubtful
 
Total
 
(In thousands)
Commercial business:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
254,593

 
$
3,908

 
$
18,157

 
$
582

 
$
277,240

Owner-occupied commercial real estate
181,630

 
2,658

 
4,206

 
—

 
188,494

Non-owner occupied commercial real estate
256,077

 
4,132

 
5,257

 
369

 
265,835

Total commercial business
692,300

 
10,698

 
27,620

 
951

 
731,569

One-to-four family residential
37,239

 
920

 
689

 
—

 
38,848

Real estate construction and land development:
 
 
 
 
 
 
 
 
 
One-to-four family residential
16,446

 
1,795

 
6,934

 
—

 
25,175

Five or more family residential and commercial properties
48,718

 
—

 
3,357

 
—

 
52,075

Total real estate construction and land development
65,164

 
1,795

 
10,291

 
—

 
77,250

Consumer
28,748

 
—

 
156

 
10

 
28,914

Gross originated loans
$
823,451

 
$
13,413

 
$
38,756

 
$
961

 
$
876,581
Past due financing receivables
The balances of originated past due loans, segregated by segments and classes of loans, as of September 30, 2013 and December 31, 2012 were as follows:
 
September 30, 2013
 
30-89 Days
 
90 Days or
Greater
 
Total Past 
Due
 
Current
 
Total
 
90 Days or More
and  Still
Accruing
 
(In thousands)
Commercial business:
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
771

 
$
3,665

 
$
4,436

 
$
288,470

 
$
292,906

 
$
—

Owner-occupied commercial real estate
486

 
758

 
1,244

 
196,177

 
197,421

 
—

Non-owner occupied commercial real estate
516

 
—

 
516

 
346,875

 
347,391

 
—

Total commercial business
1,773

 
4,423

 
6,196

 
831,522

 
837,718

 
—

One-to-four family residential
—

 
583

 
583

 
39,319

 
39,902

 
—

Real estate construction and land development:
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential
—

 
1,467

 
1,467

 
18,587

 
20,054

 
—

Five or more family residential and commercial properties
—

 
—

 
—

 
38,704

 
38,704

 
—

Total real estate construction and land development
—

 
1,467

 
1,467

 
57,291

 
58,758

 
—

Consumer
645

 
—

 
645

 
27,384

 
28,029

 
—

Gross originated loans
$
2,418

 
$
6,473

 
$
8,891

 
$
955,516

 
$
964,407

 
$
—


 
December 31, 2012
 
30-89 Days
 
90 Days or
Greater
 
Total Past 
Due
 
Current
 
Total
 
90 Days or More
and  Still
Accruing
 
(In thousands)
Commercial business:
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
2,768

 
$
2,014

 
$
4,782

 
$
272,458

 
$
277,240

 
$
25

Owner-occupied commercial real estate
920

 
112

 
1,032

 
187,462

 
188,494

 
—

Non-owner occupied commercial real estate
92

 
369

 
461

 
265,374

 
265,835

 
—

Total commercial business
3,780

 
2,495

 
6,275

 
725,294

 
731,569

 
25

One-to-four family residential
239

 
375

 
614

 
38,234

 
38,848

 
—

Real estate construction and land development:
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential
847

 
3,242

 
4,089

 
21,086

 
25,175

 
179

Five or more family residential and commercial properties
—

 
3,018

 
3,018

 
49,057

 
52,075

 
—

Total real estate construction and land development
847

 
6,260

 
7,107

 
70,143

 
77,250

 
179

Consumer
68

 
146

 
214

 
28,700

 
28,914

 
10

Gross originated loans
$
4,934

 
$
9,276

 
$
14,210

 
$
862,371

 
$
876,581

 
$
214
Purchased Covered Loans Receivable [Member]
  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Schedule of loans receivable
The recorded investment of purchased covered loans receivable at September 30, 2013 and December 31, 2012 consisted of the following portfolio segments and classes:
 
September 30, 2013
 
December 31, 2012
 
(In thousands)
Commercial business:
 
 
 
Commercial and industrial
$
18,005

 
$
25,781

Owner-occupied commercial real estate
25,724

 
34,796

Non-owner occupied commercial real estate
14,901

 
13,028

Total commercial business
58,630

 
73,605

One-to-four family residential
4,797

 
5,027

Real estate construction and land development:
 
 
 
One-to-four family residential
1,895

 
4,433

Five or more family residential and commercial properties
—

 
—

Total real estate construction and land development
1,895

 
4,433

Consumer
4,134

 
5,265

Gross purchased covered loans receivable
69,456

 
88,330

Allowance for loan losses
(5,972
)
 
(4,352
)
Purchased covered loans receivable, net
$
63,484

 
$
83,978
Purchased Non Covered Loans Receivable [Member]
  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Schedule of loans receivable
The recorded investment of purchased non-covered loans receivable at September 30, 2013 and December 31, 2012 consisted of the following portfolio segments and classes:

 
September 30, 2013
 
December 31, 2012
 
(In thousands)
Commercial business:
 
 
 
Commercial and industrial
$
57,205

 
$
24,763

Owner-occupied commercial real estate
68,292

 
13,211

Non-owner occupied commercial real estate
51,427

 
11,019

Total commercial business
176,924

 
48,993

One-to-four family residential
11,798

 
3,040

Real estate construction and land development:
 
 
 
One-to-four family residential
339

 
513

Five or more family residential and commercial properties
3,837

 
864

Total real estate construction and land development
4,176

 
1,377

Consumer
12,591

 
10,713

Gross purchased non-covered loans receivable
205,489

 
64,123

Allowance for loan losses
(5,426
)
 
(5,117
)
Purchased non-covered loans receivable, net
$
200,063

 
$
59,006
Purchased Other Loans [Member]
  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Loans receivable by credit quality indicator
The following tables present the recorded invested balance of the purchased covered and purchased noncovered loans receivable by credit quality indicator as of September 30, 2013 and December 31, 2012.
 
September 30, 2013
 
Pass
 
OAEM
 
Substandard
 
Doubtful
 
Total
 
(In thousands)
Commercial business:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
60,909

 
$
4,572

 
$
8,369

 
$
1,360

 
$
75,210

Owner-occupied commercial real estate
84,723

 
3,112

 
5,544

 
637

 
94,016

Non-owner occupied commercial real estate
53,139

 
1,176

 
8,632

 
3,381

 
66,328

Total commercial business
198,771

 
8,860

 
22,545

 
5,378

 
235,554

One-to-four family residential
12,735

 
889

 
2,971

 
—

 
16,595

Real estate construction and land development:
 
 
 
 
 
 
 
 
 
One-to-four family residential
495

 
—

 
1,739

 
—

 
2,234

Five or more family residential and commercial properties
2,593

 
—

 
1,097

 
147

 
3,837

Total real estate construction and land development
3,088

 
—

 
2,836

 
147

 
6,071

Consumer
14,079

 
342

 
1,383

 
921

 
16,725

Gross purchased covered and noncovered loans
$
228,673

 
$
10,091

 
$
29,735

 
$
6,446

 
$
274,945

 
December 31, 2012
 
Pass
 
OAEM
 
Substandard
 
Doubtful
 
Total
 
(In thousands)
Commercial business:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
40,577

 
$
1,753

 
$
6,809

 
$
1,405

 
$
50,544

Owner-occupied commercial real estate
40,676

 
2,390

 
4,676

 
265

 
48,007

Non-owner occupied commercial real estate
11,419

 
2,404

 
4,806

 
5,418

 
24,047

Total commercial business
92,672

 
6,547

 
16,291

 
7,088

 
122,598

One-to-four family residential
6,059

 
903

 
1,105

 
—

 
8,067

Real estate construction and land development:
 
 
 
 
 
 
 
 
 
One-to-four family residential
136

 
—

 
1,051

 
3,759

 
4,946

Five or more family residential and commercial properties
420

 
—

 
444

 
—

 
864

Total real estate construction and land development
556

 
—

 
1,495

 
3,759

 
5,810

Consumer
11,785

 
157

 
4,004

 
32

 
15,978

Gross purchased covered and noncovered loans
$
111,072

 
$
7,607

 
$
22,895

 
$
10,879

 
$
152,453
Schedule of nonaccrual loans
The recorded investment balance of purchased other nonaccrual loans, segregated by segments and classes of loans, were as follows as of September 30, 2013 and December 31, 2012:
 
September 30,
2013 (1)
 
December 31,
2012 (1)
 
(In thousands)
Commercial business:
 
 
 
Commercial and industrial
$
978

 
$
—

Owner-occupied commercial real estate
130

 
139

Non-owner occupied commercial real estate
883

 
437

Total commercial business
1,991

 
576

One-to-four family residential
—

 
61

Consumer
10

 
163

Gross purchased other nonaccrual loans
$
2,001

 
$
800

(1)
$7,000 and $39,000 of purchased other nonaccrual loans were covered by the FDIC shared-loss agreements at September 30, 2013 and December 31, 2012, respectively.
Past due financing receivables
The balances of purchased other past due loans, segregated by segments and classes of loans, as of September 30, 2013 and December 31, 2012 are as follows:
 
September 30, 2013
 
30-89 Days
 
90 Days or
Greater
 
Total Past 
Due
 
Current
 
Total
 
90 Days or More
and  Still
Accruing
 
(In thousands)
Commercial business:
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
29

 
$
223

 
$
252

 
$
46,197

 
$
46,449

 
$
—

Owner-occupied commercial real estate
333

 
—

 
333

 
74,888

 
75,221

 
—

Non-owner occupied commercial real estate
213

 
883

 
1,096

 
46,854

 
47,950

 
—

Total commercial business
575

 
1,106

 
1,681

 
167,939

 
169,620

 
—

One-to-four family residential
—

 
—

 
—

 
8,936

 
8,936

 
—

Real estate construction and land development:
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential
—

 
—

 
—

 
—

 
—

 
—

Five or more family residential and commercial properties
—

 
—

 
—

 
2,155

 
2,155

 
—

Total real estate construction and land development
—

 
—

 
—

 
2,155

 
2,155

 
—

Consumer
—

 
—

 
—

 
10,765

 
10,765

 
—

Gross purchased other loans
$
575

 
$
1,106

 
$
1,681

 
$
189,795

 
$
191,476

 
$
—


 
December 31, 2012
 
30-89 Days
 
90 Days or
Greater
 
Total Past 
Due
 
Current
 
Total
 
90 Days or More
and  Still
Accruing
 
(In thousands)
Commercial business:
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
—

 
$
—

 
$
—

 
$
11,981

 
$
11,981

 
$
—

Owner-occupied commercial real estate
662

 
—

 
662

 
25,748

 
26,410

 
—

Non-owner occupied commercial real estate
—

 
437

 
437

 
4,376

 
4,813

 
—

Total commercial business
662

 
437

 
1,099

 
42,105

 
43,204

 
—

One-to-four family residential
—

 
61

 
61

 
1,323

 
1,384

 
—

Real estate construction and land development:
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential
—

 
—

 
—

 
—

 
—

 
—

Five or more family residential and commercial properties
—

 
—

 
—

 
—

 
—

 
—

Total real estate construction and land development
—

 
—

 
—

 
—

 
—

 
—

Consumer
75

 
216

 
291

 
6,474

 
6,765

 
135

Gross purchased other loans
$
737

 
$
714

 
$
1,451

 
$
49,902

 
$
51,353

 
$
135
Schedule of impaired loans, including restructured
Purchased other impaired loans (including troubled debt restructured loans) at September 30, 2013 and December 31, 2012 are set forth in the following tables.

 
September 30, 2013
 
Recorded
Investment With
No Specific
Valuation
Allowance
 
Recorded
Investment With
Specific
Valuation
Allowance
 
Total
Recorded
Investment
 
Unpaid
Contractual
Principal
Balance
 
Related
Specific
Valuation
Allowance
 
(In thousands)
Commercial business:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
432

 
$
5,234

 
$
5,666

 
$
5,564

 
$
1,329

Owner-occupied commercial real estate
158

 
—

 
158

 
153

 
—

Non-owner occupied commercial real estate
1,405

 
—

 
1,405

 
1,401

 
—

Total commercial business
1,995

 
5,234

 
7,229

 
7,118

 
1,329

One-to-four family residential
—

 
455

 
455

 
428

 
35

Consumer
7

 
3

 
10

 
11

 
3

Gross purchased other impaired loans
$
2,002

 
$
5,692

 
$
7,694

 
$
7,557

 
$
1,367


 
December 31, 2012
 
Recorded
Investment With
No Specific
Valuation
Allowance
 
Recorded
Investment With
Specific
Valuation
Allowance
 
Total
Recorded
Investment
 
Unpaid
Contractual
Principal
Balance
 
Related
Specific
Valuation
Allowance
 
(In thousands)
Commercial business:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
330

 
$
106

 
$
436

 
$
434

 
$
14

Owner-occupied commercial real estate
—

 
139

 
139

 
135

 
7

Non-owner occupied commercial real estate
437

 
536

 
973

 
926

 
18

Total commercial business
767

 
781

 
1,548

 
1,495

 
39

One-to-four family residential
—

 
527

 
527

 
489

 
105

Consumer
—

 
163

 
163

 
173

 
157

Gross purchased other impaired loans
$
767

 
$
1,471

 
$
2,238

 
$
2,157

 
$
301
Troubled debt restructurings on financing receivables
Purchased other loans that were modified as TDRs during the three and nine months ended September 30, 2013 and 2012 are set forth in the following tables:

 
Three Months Ended September 30,
 
2013
 
2012
 
Number of
Contracts
 
Outstanding
Principal Balance
(1)(2)
 
Number of
Contracts
 
Outstanding
Principal
Balance (1)(2)
 
(Dollars in thousands)
Commercial business:
 
 
 
 
 
 
 
Commercial and industrial
4

 
$
4,176

 
—

 
$
—

Total commercial business
4

 
4,176

 
—

 
—

One-to-four family residential
—

 
—

 
1

 
468

Total purchased other TDRs
4

 
$
4,176

 
1

 
$
468


 
Nine Months Ended September 30,
 
2013
 
2012
 
Number of
Contracts (1)
 
Outstanding
Principal Balance
(1)(2)
 
Number of
Contracts (1)
 
Outstanding
Principal
Balance (1)(2)
 
(Dollars in thousands)
Commercial business:
 
 
 
 
 
 
 
Commercial and industrial
5

 
$
4,300

 
1

 
$
17

Owner occupied commercial real estate
1

 
28

 
—

 
—

Non-owner occupied commercial real estate
—

 
—

 
1

 
540

Total commercial business
6

 
4,328

 
2

 
557

One-to-four family residential
—

 
—

 
1

 
468

Consumer
1

 
3

 
—

 
—

Total purchased other TDRs
7

 
$
4,331

 
3

 
$
1,025

(1)
Number of contracts and outstanding principal balance represent loans which have balances as of period end dates as certain loans may have been paid-down or charged-off during the three and nine months ended September 30, 2013 and 2012.
(2)
Includes subsequent payments after modifications and reflects the balance as of the end of the period. The Bank’s initial recorded investment in the loans did not change as a result of the modifications as the Bank did not forgive any principal or interest balance as part of the modifications.
Originated nonaccrual loans [Member]
  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Schedule of nonaccrual loans
Originated nonaccrual loans, segregated by segments and classes of loans, were as follows as of September 30, 2013 and December 31, 2012:
 
September 30,
2013 (1)
 
December 31,
2012 (1)
 
(In thousands)
Commercial business:
 
 
 
Commercial and industrial
$
4,441

 
$
4,560

Owner-occupied commercial real estate
844

 
563

Non-owner occupied commercial real estate
—

 
369

Total commercial business
5,285

 
5,492

One-to-four family residential
583

 
389

Real estate construction and land development:
 
 
 
One-to-four family residential
1,467

 
3,063

Five or more family residential and commercial properties
2,385

 
3,357

Total real estate construction and land development
3,852

 
6,420

Consumer
39

 
157

Gross originated nonaccrual loans
$
9,759

 
$
12,458

(1)
$1.9 million and $1.2 million of nonaccrual originated loans were guaranteed by governmental agencies at September 30, 2013 and December 31, 2012, respectively.
Impaired Originated Loans [Member]
  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Schedule of impaired loans, including restructured
Originated impaired loans (including troubled debt restructured loans) at September 30, 2013 and December 31, 2012 are set forth in the following tables.
 
September 30, 2013
 
Recorded
Investment With
No Specific
Valuation
Allowance
 
Recorded
Investment With
Specific
Valuation
Allowance
 
Total
Recorded
Investment
 
Unpaid
Contractual
Principal
Balance
 
Related
Specific
Valuation
Allowance
 
(In thousands)
Commercial business:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
6,757

 
$
5,269

 
$
12,026

 
$
13,889

 
$
2,345

Owner-occupied commercial real estate
1,096

 
1,400

 
2,496

 
3,686

 
501

Non-owner occupied commercial real estate
2,610

 
4,147

 
6,757

 
6,757

 
1,307

Total commercial business
10,463

 
10,816

 
21,279

 
24,332

 
4,153

One-to-four family residential
837

 
—

 
837

 
849

 
—

Real estate construction and land development:
 
 
 
 
 
 
 
 
 
One-to-four family residential
4,810

 
—

 
4,810

 
6,402

 
—

Five or more family residential and commercial properties
2,385

 
—

 
2,385

 
2,385

 
—

Total real estate construction and land development
7,195

 
—

 
7,195

 
8,787

 
—

Consumer
—

 
39

 
39

 
40

 
39

Gross originated loans
$
18,495

 
$
10,855

 
$
29,350

 
$
34,008

 
$
4,192


 
December 31, 2012
 
Recorded
Investment With
No Specific
Valuation
Allowance
 
Recorded
Investment With
Specific
Valuation
Allowance
 
Total
Recorded
Investment
 
Unpaid
Contractual
Principal
Balance
 
Related
Specific
Valuation
Allowance
 
(In thousands)
Commercial business:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
7,797

 
$
2,643

 
$
10,440

 
$
10,741

 
$
858

Owner-occupied commercial real estate
633

 
1,418

 
2,051

 
2,134

 
509

Non-owner occupied commercial real estate
3,031

 
4,226

 
7,257

 
7,257

 
1,386

Total commercial business
11,461

 
8,287

 
19,748

 
20,132

 
2,753

One-to-four family residential
422

 
389

 
811

 
811

 
46

Real estate construction and land development:
 
 
 
 
 
 
 
 
 
One-to-four family residential
700

 
2,724

 
3,424

 
4,597

 
792

Five or more family residential and commercial properties
—

 
3,357

 
3,357

 
3,397

 
658

Total real estate construction and land development
700

 
6,081

 
6,781

 
7,994

 
1,450

Consumer
47

 
110

 
157

 
157

 
110

Gross originated loans
$
12,630

 
$
14,867

 
$
27,497

 
$
29,094

 
$
4,359
Schedule of average recorded investment impaired loans including restructuring loans
The average recorded investment of originated impaired loans (including troubled debt restructured loans) for the three and nine months ended September 30, 2013 and 2012 are set forth in the following table.

 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
 
2013
 
2012
 
2013
 
2012
 
(In thousands)
Commercial business:
 
 
 
 
 
 
 
Commercial and industrial
$
12,407

 
$
12,162

 
$
12,132

 
$
11,628

Owner-occupied commercial real estate
2,546

 
1,675

 
2,399

 
2,057

Non-owner occupied commercial real estate
6,779

 
7,222

 
6,937

 
7,561

Total commercial business
21,732

 
21,059

 
21,468

 
21,246

One-to-four family residential
838

 
1,014

 
937

 
1,004

Real estate construction and land development:
 
 
 
 
 
 
 
One-to-four family residential
5,038

 
4,080

 
4,125

 
4,620

Five or more family residential and commercial properties
2,585

 
4,629

 
2,948

 
5,929

Total real estate construction and land development
7,623

 
8,709

 
7,073

 
10,549

Consumer
79

 
118

 
90

 
148

Gross impaired originated loans
$
30,272

 
$
30,900

 
$
29,568

 
$
32,947
Impaired Purchased Other Loans [Member]
  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Average recorded investment impaired purchased other financing receivable
The average recorded investment of purchased other impaired loans (including troubled debt restructured loans) for three and nine months ended September 30, 2013 and 2012 are set forth in the following table.

 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
 
2013
 
2012
 
2013
 
2012
 
(In thousands)
Commercial business:
 
 
 
 
 
 
 
Commercial and industrial
$
3,193

 
$
17

 
$
1,815

 
$
13

Owner-occupied commercial real estate
161

 
143

 
149

 
72

Non-owner occupied commercial real estate
1,186

 
978

 
1,079

 
598

Total commercial business
4,540

 
1,138

 
3,043

 
683

One-to-four family residential
457

 
234

 
476

 
117

Consumer
10

 
231

 
55

 
338

Gross impaired purchased other loans
$
5,007

 
$
1,603

 
$
3,574

 
$
1,138