Loans (Tables)

6 Months Ended

Jun. 30, 2013

Loans

Schedule of loans

	June 30, 2013			December 31, 2012
	(Dollars in thousands)
Loans held-for-investment:
Commercial	$	383,068		$	375,469
Real estate:
Commercial and residential		370,620			354,934
Land and construction		26,705			22,352
Home equity		48,667			43,865
Consumer		13,097			15,714
Loans		842,157			812,334
Deferred loan origination fees, net		(207	)		(21	)
Loans, net of deferred fees		841,950			812,313
Allowance for loan losses		(19,342	)		(19,027	)
Loans, net	$	822,608		$	793,286

Schedule of changes in allowance for loan losses

	Three Months Ended June 30, 2013
	Commercial			Real Estate			Consumer		Total
	(Dollars in thousands)
Balance, beginning of period	$	12,455		$	6,770		$	117	$	19,342
Charge-offs		(119	)		(56	)		—		(175	)
Recoveries		188			257			—		445
Net recoveries		69			201			—		270
Provision (credit) for loan losses		287			(583	)		26		(270	)
Balance, end of period	$	12,811		$	6,388		$	143	$	19,342

	Three Months Ended June 30, 2012
	Commercial			Real Estate			Consumer			Total
	(Dollars in thousands)
Balance, beginning of period	$	13,734		$	6,409		$	163		$	20,306
Charge-offs		(1,280	)		(101	)		—			(1,381	)
Recoveries		60			223			—			283
Net (charge-offs)/recoveries		(1,220	)		122			—			(1,098	)
Provision (credit) for loan losses		864			8			(57	)		815
Balance, end of period	$	13,378		$	6,539		$	106		$	20,023

	Six Months Ended June 30, 2013
	Commercial			Real Estate			Consumer		Total
	(Dollars in thousands)
Balance, beginning of period	$	12,866		$	6,034		$	127	$	19,027
Charge-offs		(959	)		(56	)		—		(1,015	)
Recoveries		1,338			262			—		1,600
Net recoveries		379			206			—		585
Provision (credit) for loan losses		(434	)		148			16		(270	)
Balance, end of period	$	12,811		$	6,388		$	143	$	19,342

	Six Months Ended June 30, 2012
	Commercial			Real Estate			Consumer			Total
	(Dollars in thousands)
Balance, beginning of period	$	13,215		$	7,338		$	147		$	20,700
Charge-offs		(2,190	)		(146	)		—			(2,336	)
Recoveries		521			223			—			744
Net (charge-offs)/recoveries		(1,669	)		77			—			(1,592	)
Provision (credit) for loan losses		1,832			(876	)		(41	)		915
Balance, end of period	$	13,378		$	6,539		$	106		$	20,023

Schedule of balance in allowance for loan losses and recorded investment in loans by portfolio segment, based on impairment method

	June 30, 2013
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	2,588	$	786	$	28	$	3,402
Collectively evaluated for impairment		10,223		5,602		115		15,940
Total allowance balance	$	12,811	$	6,388	$	143	$	19,342
Loans:
Individually evaluated for impairment	$	5,342	$	9,569	$	135	$	15,046
Collectively evaluated for impairment		377,726		436,423		12,962		827,111
Total loan balance	$	383,068	$	445,992	$	13,097	$	842,157

	December 31, 2012
	Commercial		Real Estate		Consumer		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	1,963	$	760	$	17	$	2,740
Collectively evaluated for impairment		10,903		5,274		110		16,287
Total allowance balance	$	12,866	$	6,034	$	127	$	19,027
Loans:
Individually evaluated for impairment	$	10,161	$	9,336	$	147	$	19,644
Collectively evaluated for impairment		365,308		411,815		15,567		792,690
Total loan balance	$	375,469	$	421,151	$	15,714	$	812,334

Schedule of loans held-for-investment individually evaluated for impairment by class of loans

	June 30, 2013						December 31, 2012
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
	(Dollars in thousands)
With no related allowance recorded:
Commercial	$	1,031	$	948	$	—	$	7,829	$	6,978	$	—
Real estate:
Commercial and residential		3,509		3,509		—		2,755		2,741		—
Land and construction		2,070		2,070		—		2,310		2,223		—
Home Equity		2,077		2,077		—		2,141		2,141		—
Total with no related allowance recorded		8,687		8,604		—		15,035		14,083		—
With an allowance recorded:
Commercial		4,487		4,394		2,588		3,678		3,182		1,963
Real estate:
Commercial and residential		1,560		1,560		480		3,183		1,937		465
Land and construction		59		59		12		—		—		—
Home Equity		294		294		294		295		295		295
Consumer		135		135		28		147		147		17
Total with an allowance recorded		6,535		6,442		3,402		7,303		5,561		2,740
Total	$	15,222	$	15,046	$	3,402	$	22,338	$	19,644	$	2,740

Schedule of average impaired loans with interest recognized and cash-basis interest earned on impaired loans

	Three Months Ended June 30, 2013
			Real Estate
	Commercial		Commercial and Residential		Land and Construction		Home Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	6,736	$	5,286	$	2,153	$	2,401	$	138	$	16,714
Interest income during impairment	$	—	$	—	$	—	$	—	$	—	$	—
Cash-basis interest earned	$	—	$	—	$	—	$	—	$	—	$	—

	Three Months Ended June 30, 2012
			Real Estate
	Commercial		Commercial and Residential		Land and Construction		Home Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	11,034	$	2,252	$	2,210	$	199	$	86	$	15,781
Interest income during impairment	$	—	$	—	$	—	$	—	$	—	$	—
Cash-basis interest earned	$	—	$	—	$	—	$	—	$	—	$	—

	Six Months Ended June 30, 2013
			Real Estate
	Commercial		Commercial and Residential		Land and Construction		Home Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	7,877	$	5,083	$	2,177	$	2,413	$	141	$	17,691
Interest income during impairment	$	—	$	—	$	—	$	—	$	—	$	—
Cash-basis interest earned	$	—	$	—	$	—	$	—	$	—	$	—

	Six Months Ended June 30, 2012
			Real Estate
	Commercial		Commercial and Residential		Land and Construction		Home Equity		Consumer		Total
	(Dollars in thousands)
Average of impaired loans during the period	$	11,341	$	2,214	$	2,733	$	143	$	61	$	16,492
Interest income during impairment	$	—	$	1	$	14	$	—	$	—	$	15
Cash-basis interest earned	$	—	$	1	$	14	$	—	$	—	$	15

Schedule of nonperforming loans

	June 30,
					December 31, 2012
	2013		2012
	(Dollars in thousands)
Nonaccrual loans—held-for-sale	$	—	$	177	$	—
Nonaccrual loans—held-for-investment		13,868		12,890		17,335
Restructured and loans over 90 days past due and still accruing		510		1,665		859
Total nonperforming loans	$	14,378	$	14,732	$	18,194
Other restructured loans	$	668	$	416	$	1,450
Impaired loans, excluding loans held-for-sale	$	15,046	$	14,971	$	19,644

Schedule of nonperforming loans by class

	June 30, 2013						December 31, 2012
	Nonaccrual		Restructured and Loans Over 90 Days Past Due and Still Accruing		Total		Nonaccrual		Restructured and Loans Over 90 Days Past Due and Still Accruing		Total
	(Dollars in thousands)
Commercial	$	4,164	$	510	$	4,674	$	7,852	$	859	$	8,711
Real estate:
Commercial and residential		5,069		—		5,069		4,676		—		4,676
Land and construction		2,129		—		2,129		2,223		—		2,223
Home equity		2,371		—		2,371		2,437		—		2,437
Consumer		135		—		135		147		—		147
Total	$	13,868	$	510	$	14,378	$	17,335	$	859	$	18,194

Schedule of aging of past due loans by class of loans

	June 30, 2013
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans Not Past Due		Total
	(Dollars in thousands)
Commercial	$	2,540	$	567	$	1,871	$	4,978	$	378,090	$	383,068
Real estate:
Commercial and residential		139		—		1,639		1,778		368,842		370,620
Land and construction		—		—		59		59		26,646		26,705
Home equity		—		—		294		294		48,373		48,667
Consumer		—		99		—		99		12,998		13,097
Total	$	2,679	$	666	$	3,863	$	7,208	$	834,949	$	842,157

	December 31, 2012
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans Not Past Due		Total
	(Dollars in thousands)
Commercial	$	1,699	$	355	$	5,120	$	7,174	$	368,295	$	375,469
Real estate:
Commercial and residential		1,603		—		3,290		4,893		350,041		354,934
Land and construction		—		—		78		78		22,274		22,352
Home equity		742		—		2,045		2,787		41,078		43,865
Consumer		—		—		—		—		15,714		15,714
Total	$	4,044	$	355	$	10,533	$	14,932	$	797,402	$	812,334

Summary of loan portfolio by loan type and credit quality classification

	June 30, 2013						December 31, 2012
	Nonclassified		Classified		Total		Nonclassified		Classified		Total
	(Dollars in thousands)
Commercial	$	372,077	$	10,991	$	383,068	$	355,440	$	20,029	$	375,469
Real estate:
Commercial and residential		363,222		7,398		370,620		345,045		9,889		354,934
Land and construction		24,576		2,129		26,705		18,858		3,494		22,352
Home equity		45,974		2,693		48,667		41,187		2,678		43,865
Consumer		12,729		368		13,097		15,321		393		15,714
Total	$	818,578	$	23,579	$	842,157	$	775,851	$	36,483	$	812,334

Schedule of loans by class modified as troubled debt restructurings

	During the Three Months Ended June 30, 2012
Troubled Debt Restructurings:	Number of Contracts		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
	(Dollars in thousands)
Consumer		1	$	117	$	117
Total		1	$	117	$	117

	During the Six Months Ended June 30, 2012
Troubled Debt Restructurings:	Number of Contracts		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
	(Dollars in thousands)
Commercial		1	$	112	$	112
Consumer		1		117		117
Total		2	$	229	$	229