Allowance for Non-Covered Loan Losses and Credit Quality (Tables)

12 Months Ended

Dec. 31, 2012

Allowance for Non-Covered Loan Losses and Credit Quality [Abstract]

Summary of changes in allowance for loan losses for non-covered loans

The following table summarizes activity related to the allowance for loan losses on non-covered loans, by portfolio segment, for the years ended December 31:

(dollars in thousands)	Year Ended December 31, 2012
	Commercial			Real estate mortgage			Real estate construction			Consumer			Total
Beginning balance	$	4,034		$	6,500		$	4,046		$	3,452		$	18,032
Provision		1,763			2,889			1,699			749			7,100
Charge-offs		(1,640	)		(3,311	)		(2,706	)		(1,526	)		(9,183	)
Recoveries		248			438			11			501			1,198
Ending Balance	$	4,405		$	6,516		$	3,050		$	3,176		$	17,147

	Year Ended December 31, 2011
	Commercial			Real estate mortgage			Real estate construction			Consumer			Total
Beginning balance	$	3,915		$	6,507		$	4,947		$	3,443		$	18,812
Provision		1,557			7,852			(759	)		1,850			10,500
Charge-offs		(1,707	)		(8,547	)		(144	)		(2,543	)		(12,941	)
Recoveries		269			688			2			702			1,661
Ending Balance	$	4,034		$	6,500		$	4,046		$	3,452		$	18,032

Summary of allowance for loan losses and related non-covered loans, by portfolio segment

The following tables provide a summary of the allowance for loan losses and related non-covered loans, by portfolio segment, as of December 31, 2012 and 2011:

(dollars in thousands)	December 31, 2012
	Commercial		Real estate mortgage		Real estate construction		Consumer		Total
Allowance for non-covered loan losses:
Individually evaluated for impairment	$	1,468	$	1,154	$	881	$	52	$	3,555
Collectively evaluated for impairment		2,937		5,362		2,169		3,124		13,592
Total allowance for loan losses	$	4,405	$	6,516	$	3,050	$	3,176	$	17,147

Non-covered loans:
Individually evaluated for impairment	$	9,974	$	11,357	$	19,607	$	916	$	41,854
Collectively evaluated for impairment		152,507		441,270		61,791		153,974		809,542
Total non-covered loans (1)	$	162,481	$	452,627	$	81,398	$	154,890	$	851,396

(1) Total non-covered loans excludes deferred loan costs of $1.7 million.

(dollars in thousands)	December 31, 2011
	Commercial		Real estate mortgage		Real estate construction		Consumer		Total
Allowance for non-covered loan losses:
Individually evaluated for impairment	$	588	$	1,212	$	1,869	$	79	$	3,748
Collectively evaluated for impairment		3,446		5,288		2,177		3,373		14,284
Total allowance for loan losses	$	4,034	$	6,500	$	4,046	$	3,452	$	18,032

Non-covered loans:
Individually evaluated for impairment	$	6,525	$	14,032	$	27,483	$	553	$	48,593
Collectively evaluated for impairment		143,861		397,081		62,873		158,569		762,384
Total non-covered loans (1)	$	150,386	$	411,113	$	90,356	$	159,122	$	810,977

(1) Total non-covered loans excludes deferred loan costs of $1.9 million.

Summary of non-covered impaired loans and the related allowance for loan losses

The Company had non-covered impaired loans consisting of nonaccrual loans and restructured loans. As of December 31, 2012, the Company had no commitments to extend additional credit on these non-covered impaired loans. Non-covered impaired loans and the related allowance for loan losses were as follows:

(dollars in thousands)	December 31,
	2012				2011
	Recorded investment		Allowance		Recorded investment		Allowance
With no related allowance recorded
Nonaccrual loans	$	15,479	$	-	$	18,744	$	-
Restructured loans		8,635		-		11,208		-
Total with no related allowance	$	24,114	$	-	$	29,952	$	-

With an allowance recorded
Nonaccrual loans	$	72	$	5	$	3,356	$	262
Restructured loans		17,668		3,550		15,285		3,486
Total with an allowance recorded		17,740		3,555		18,641		3,748
Total	$	41,854	$	3,555	$	48,593	$	3,748

Summary of impaired non-covered loans, by class

The following table further summarizes impaired non-covered loans, by class, as of December 31, 2012 and 2011:

(dollars in thousands)	December 31, 2012						December 31, 2011
	Recorded investment		Unpaid principal balance		Related allowance		Recorded investment		Unpaid principal balance		Related allowance
With no related allowance recorded
Commercial	$	3,737	$	4,231	$	-	$	3,801	$	5,692	$	-
Real estate mortgages:
One-to-four family residential		938		1,132		-		1,557		3,217		-
Multi-family and commercial		3,605		4,283		-		7,062		8,791		-
Total real estate mortgages		4,543		5,415		-		8,619		12,008		-
Real estate construction:
One-to-four family residential		15,251		23,133		-		16,932		21,803		-
Multi-family and commercial		-		-		-		387		387		-
Total real estate construction		15,251		23,133		-		17,319		22,190		-
Consumer:
Indirect		-		-		-		-		-		-
Direct		583		1,017		-		213		900		-
Total consumer		583		1,017		-		213		900		-
Total with no related allowance recorded	$	24,114	$	33,796	$	-	$	29,952	$	40,790	$	-

With an allowance recorded
Commercial	$	6,237	$	6,237	$	1,468	$	2,724	$	3,128	$	588
Real estate mortgages:
One-to-four family residential		524		524		53		174		190		13
Multi-family and commercial		6,290		6,657		1,101		5,238		5,238		1,199
Total real estate mortgages		6,814		7,181		1,154		5,412		5,428		1,212
Real estate construction:
One-to-four family residential		4,094		4,112		855		10,164		10,845		1,869
Multi-family and commercial		262		262		26		-		-		-
Total real estate construction		4,356		4,374		881		10,164		10,845		1,869
Consumer:
Indirect		-		-		-		-		-		-
Direct		333		333		52		341		341		79
Total consumer		333		333		52		341		341		79
Total with an allowance recorded		17,740		18,125		3,555		18,641		19,742		3,748
Total impaired non-covered loans	$	41,854	$	51,921	$	3,555	$	48,593	$	60,532	$	3,748

Summary of troubled debt restructurings

Troubled debt restructurings at December 31, 2012 and 2011 were as follows:

(dollars in thousands)	December 31, 2012						December 31, 2011
	Accrual status		Nonaccrual status		Total modifications		Accrual status		Nonaccrual status		Total modifications
Troubled debt restructurings:
Commercial	$	7,008	$	1,160	$	8,168	$	3,341	$	-	$	3,341
Real estate mortgages:
One-to-four family residential		573		340		913		-		933		933
Multi-family and commercial		7,993		1,823		9,816		9,420		937		10,357
Total real estate mortgage		8,566		2,163		10,729		9,420		1,870		11,290

Real estate construction:
One-to-four family residential		10,135		9,013		19,148		13,391		13,283		26,674
Multi-family and commercial		262		-		262		-		387		387
Total real estate construction		10,397		9,013		19,410		13,391		13,670		27,061

Consumer:
Direct		332		20		352		341		-		341
Total consumer		332		20		352		341		-		341
Total restructured loans	$	26,303	$	12,356	$	38,659	$	26,493	$	15,540	$	42,033

Summary of troubled debt restructurings, modified during the period

The following tables present loans restructured for the years ended December 31, 2012 and 2011. For the periods presented, all modification terms were a combination of terms employed by the Company.

(dollars in thousands)	For the Year Ended December 31, 2012
	Number of contracts		Pre-modification recorded investment		Post-modification recorded investment
Troubled debt restructurings:
Commercial		18	$	4,812	$	4,403
Real estate mortgages:
One-to-four family residential		3		565		561
Multi-family and commercial		2		701		694
Total real estate mortgage		5		1,266		1,255

Real estate construction:
One-to-four family residential		2		1,064		933
Multi-family and commercial		1		262		262
Total real estate construction		3		1,326		1,195

Consumer:
Indirect		-		-		-
Direct		-		-		-
Total consumer		-		-		-
Total restructured loans		26	$	7,404	$	6,853

(dollars in thousands)	For the Year Ended December 31, 2011
	Number of contracts		Pre-modification recorded investment		Post-modification recorded investment
Troubled debt restructurings:
Commercial		2	$	1,039	$	1,039
Real estate mortgages:
One-to-four family residential		-		-		-
Multi-family and commercial		10		6,395		6,212
Total real estate mortgage		10		6,395		6,212

Real estate construction:
One-to-four family residential		8		5,796		5,796
Multi-family and commercial		-		-		-
Total real estate construction		8		5,796		5,796

Consumer:
Indirect		-		-		-
Direct		1		341		341
Total consumer		1		341		341
Total restructured loans		21	$	13,571	$	13,388

Summary of non-covered nonaccrual loans and past due loans, by class

The following tables summarize non-covered nonaccrual loans and past due loans, by class, as of December 31, 2012 and 2011:

(dollars in thousands)	December 31, 2012
	30 - 59 Days past due		60 - 89 Days past due		Greater than 90 days and accruing		Total past due		Nonaccrual		Current		Total non-covered loans
Commercial	$	232	$	373	$	-	$	605	$	2,966	$	158,910	$	162,481
Real estate mortgages:
One-to-four family residential		-		-		-		-		889		35,984		36,873
Multi-family and commercial		-		-		-		-		1,903		413,851		415,754
Total real estate mortgages		-		-		-		-		2,792		449,835		452,627

Real estate construction:
One-to-four family residential		-		63		-		63		9,210		37,199		46,472
Multi-family and commercial		-		-		-		-				34,926		34,926
Total real estate construction		-		63		-		63		9,210		72,125		81,398

Consumer:
Indirect		966		112		-		1,078		-		76,518		77,596
Direct		469		415		-		884		583		75,827		77,294
Total consumer		1,435		527		-		1,962		583		152,345		154,890
Total	$	1,667	$	963	$	-	$	2,630	$	15,551	$	833,215		851,396
Deferred loan costs, net														1,738
Total non-covered loans													$	853,134

(dollars in thousands)	December 31, 2011
	30 - 59 Days past due		60 - 89 Days past due		Greater than 90 days and accruing		Total past due		Nonaccrual		Current		Total non-covered loans
Commercial	$	1,482	$	4	$	-	$	1,486	$	3,183	$	145,717	$	150,386
Real estate mortgages:
One-to-four family residential		53		154		-		207		1,732		38,392		40,331
Multi-family and commercial		1,687		484		-		2,171		2,881		365,730		370,782
Total real estate mortgages		1,740		638		-		2,378		4,613		404,122		411,113

Real estate construction:
One-to-four family residential		27		-		-		27		13,705		45,078		58,810
Multi-family and commercial		100		-		-		100		387		31,059		31,546
Total real estate construction		127		-		-		127		14,092		76,137		90,356

Consumer:
Indirect		1,288		198		-		1,486		-		78,910		80,396
Direct		1,023		294		-		1,317		212		77,197		78,726
Total consumer		2,311		492		-		2,803		212		156,107		159,122
Total	$	5,660	$	1,134	$	-	$	6,794	$	22,100	$	782,083		810,977
Deferred loan costs, net														1,853
Total non-covered loans													$	812,830

Summary of internal risk rating, by class

The following tables summarize the internal risk rating, by class, as of December 31, 2012 and 2011:

(dollars in thousands)	December 31, 2012
	Pass/Watch		Special mention		Substandard		Doubtful/Loss		Total
Commercial	$	140,809	$	4,412	$	17,260	$	-	$	162,481
Real estate mortgages:
One-to-four family residential		31,511		1,139		4,223		-		36,873
Multi-family and commercial		363,408		26,287		26,059		-		415,754
Total real estate mortgages		394,919		27,426		30,282		-		452,627

Real estate construction:
One-to-four family residential		25,389		776		20,307		-		46,472
Multi-family and commercial		32,166		472		2,288		-		34,926
Total real estate construction		57,555		1,248		22,595		-		81,398

Consumer:
Indirect		76,076		16		1,504		-		77,596
Direct		71,176		450		5,668		-		77,294
Total consumer		147,252		466		7,172		-		154,890
Total	$	740,535	$	33,552	$	77,309	$	-		851,396
Deferred loan costs, net										1,738
									$	853,134

(dollars in thousands)	December 31, 2011
	Pass/Watch		Special mention		Substandard		Doubtful/Loss		Total
Commercial	$	122,189	$	7,791	$	20,406	$	-	$	150,386
Real estate mortgages:
One-to-four family residential		33,609		1,462		5,260		-		40,331
Multi-family and commercial		307,402		26,220		37,160		-		370,782
Total real estate mortgages		341,011		27,682		42,420		-		411,113

Real estate construction:
One-to-four family residential		26,110		2,313		30,387		-		58,810
Multi-family and commercial		24,402		4,416		2,728		-		31,546
Total real estate construction		50,512		6,729		33,115		-		90,356

Consumer:
Indirect		78,531		15		1,850		-		80,396
Direct		72,602		844		5,280		-		78,726
Total consumer		151,133		859		7,130		-		159,122
Total	$	664,845	$	43,061	$	103,071	$	-		810,977
Deferred loan costs, net										1,853
									$	812,830