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

3 Months Ended

Mar. 31, 2013

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

The following table summarizes activity related to the allowance for loan losses on non-covered loans, by portfolio segment, for the three months ended March 31, 2013 and 2012:



(dollars in thousands)	Three Months Ended March 31, 2013
	Commercial			Real estate mortgage			Real estate construction			Consumer			Total
Beginning balance	$	4,405		$	6,516		$	3,050		$	3,176		$	17,147
Provision	(29		)	341			(409		)	547			450
Charge-offs	(63		)	(86		)	(38		)	(727		)	(914		)
Recoveries	25			70			1			147			243
Ending Balance	$	4,338		$	6,841		$	2,604		$	3,143		$	16,926



(dollars in thousands)	Three Months Ended March 31, 2012
	Commercial			Real estate mortgage			Real estate construction			Consumer			Total
Beginning balance	$	4,034		$	6,500		$	4,046		$	3,452		$	18,032
Provision	573			581			647			199			2,000
Charge-offs	(585		)	(561		)	(600		)	(487		)	(2,233		)
Recoveries	19			18			2			155			194
Ending Balance	$	4,041		$	6,538		$	4,095		$	3,319		$	17,993

Schedule of Allowance For Loan Losses and Related Non Covered Loans, by Portfolio Segment

The following tables provides a summary of the allowance for non-covered loan losses and related non-covered loans, by portfolio segment, at March 31, 2013 and December 31, 2012:



(dollars in thousands)	March 31, 2013
	Commercial		Real estate mortgage		Real estate construction		Consumer		Total
Allowance for non-covered loan losses:
Individually evaluated for impairment	$	1,464	$	1,158	$	822	$	51	$	3,495
Collectively evaluated for impairment	2,874		5,683		1,782		3,092		13,431
Total allowance for non-covered loan losses	$	4,338	$	6,841	$	2,604	$	3,143	$	16,926
Non-covered loans:
Individually evaluated for impairment	$	10,279	$	10,138	$	16,511	$	703	$	37,631
Collectively evaluated for impairment	149,774		450,105		49,361		155,160		804,400
Total non-covered loans ⁽¹⁾	$	160,053	$	460,243	$	65,872	$	155,863	$	842,031

⁽¹⁾ Total non-covered loans excludes deferred loan costs of $1.8 million.



(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 non-covered 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

Schedule of Impaired Loans and the Related Allowance for Loan Losses

At March 31, 2013 and December 31, 2012, the Company had non-covered impaired loans which consisted of nonaccrual loans and restructured loans. As of March 31, 2013, 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 at March 31, 2013 and December 31, 2012 were as follows:



(dollars in thousands)	March 31, 2013				December 31, 2012
	Recorded investment		Allowance		Recorded investment		Allowance
With no related allowance recorded
Nonaccrual loans	$	11,607	$	—	$	15,479	$	—
Restructured loans	8,934		—		8,635		—
Total with no related allowance	$	20,541	$	—	$	24,114	$	—
With an allowance recorded
Nonaccrual loans	$	225	$	18	$	72	$	5
Restructured loans	16,865		3,477		17,668		3,550
Total with an allowance recorded	17,090		3,495		17,740		3,555
Total	$	37,631	$	3,495	$	41,854	$	3,555

Schedule of Impaired Non Covered Loans, By Class

The following table further summarizes impaired non-covered loans, by class, at March 31, 2013 and December 31, 2012:



(dollars in thousands)	March 31, 2013						December 31, 2012
	Recorded investment		Unpaid principal balance		Related allowance		Recorded investment		Unpaid principal balance		Related allowance
With no related allowance recorded
Commercial	$	4,272	$	4,835	$	—	$	3,737	$	4,231	$	—
Real estate mortgages:
One-to-four family residential	540		577		—		938		1,132		—
Multi-family and commercial	2,832		3,366		—		3,605		4,283		—
Total real estate mortgages	3,372		3,943		—		4,543		5,415		—
Real estate construction:
One-to-four family residential	12,524		16,751		—		15,251		23,133		—
Total real estate construction	12,524		16,751		—		15,251		23,133		—
Consumer:
Direct	373		542		—		583		1,017		—
Total consumer	373		542		—		583		1,017		—
Total with no related allowance recorded	$	20,541	$	26,071	$	—	$	24,114	$	33,796	$	—
With an allowance recorded
Commercial	$	6,007	$	6,008	$	1,464	$	6,237	$	6,237	$	1,468
Real estate mortgages:
One-to-four family residential	522		522		51		524		524		53
Multi-family and commercial	6,245		6,616		1,107		6,290		6,657		1,101
Total real estate mortgages	6,767		7,138		1,158		6,814		7,181		1,154
Real estate construction:
One-to-four family residential	3,727		3,747		799		4,094		4,112		855
Multi-family and commercial	259		259		23		262		262		26
Total real estate construction	3,986		4,006		822		4,356		4,374		881
Consumer:
Direct	330		330		51		333		333		52
Total consumer	330		330		51		333		333		52
Total with an allowance recorded	17,090		17,482		3,495		17,740		18,125		3,555
Total impaired non-covered loans	$	37,631	$	43,553	$	3,495	$	41,854	$	51,921	$	3,555

Troubled Debt Restructurings

Troubled debt restructurings at March 31, 2013 and December 31, 2012 were as follows:



(dollars in thousands)	March 31, 2013						December 31, 2012
	Accrual status		Nonaccrual status		Total modifications		Accrual status		Nonaccrual status		Total modifications
Troubled debt restructurings:
Commercial	$	6,980	$	1,010	$	7,990	$	7,008	$	1,160	$	8,168
Real estate mortgages:
One-to-four family residential	570		338		908		573		340		913
Multi-family and commercial	7,934		1,072		9,006		7,993		1,823		9,816
Total real estate mortgage	8,504		1,410		9,914		8,566		2,163		10,729
Real estate construction:
One-to-four family residential	9,726		6,360		16,086		10,135		9,013		19,148
Multi-family and commercial	259		—		259		262		—		262
Total real estate construction	9,985		6,360		16,345		10,397		9,013		19,410
Consumer:
Direct	330		18		348		332		20		352
Total consumer	330		18		348		332		20		352
Total restructured loans	$	25,799	$	8,798	$	34,597	$	26,303	$	12,356	$	38,659

Schedule of Past Due Status of Loans Receivable

The following table summarizes non-covered nonaccrual loans and past due loans, by class, as of March 31, 2013 and December 31, 2012:



(dollars in thousands)	March 31, 2013
	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	$	922	$	213	$	—	$	1,135	$	3,299	$	155,619	$	160,053
Real estate mortgages:
One-to-four family residential	312		—		—		312		492		34,370		35,174
Multi-family and commercial	—		—		—		—		1,142		423,927		425,069
Total real estate mortgages	312		—		—		312		1,634		458,297		460,243
Real estate construction:
One-to-four family residential	514		32		—		546		6,526		33,027		40,099
Multi-family and commercial	—		—		—		—		—		25,773		25,773
Total real estate construction	514		32		—		546		6,526		58,800		65,872
Consumer:
Indirect	965		130		—		1,095		—		76,559		77,654
Direct	754		91		—		845		373		76,991		78,209
Total consumer	1,719		221		—		1,940		373		153,550		155,863
Total	$	3,467	$	466	$	—	$	3,933	$	11,832	$	826,266	842,031
Deferred loan costs, net													1,781
Total non-covered loans													$	843,812



(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

Allowance for Credit Losses on Financing Receivables by Credit Quality Indicators

The following table summarizes our internal risk rating, by class, as of March 31, 2013 and December 31, 2012:



(dollars in thousands)	March 31, 2013
	Pass/Watch		Special mention		Substandard		Doubtful/Loss		Total
Commercial	$	136,208	$	6,949	$	16,896	$	—	$	160,053
Real estate mortgages:
One-to-four family residential	29,978		645		4,551		—		35,174
Multi-family and commercial	379,764		19,270		26,035		—		425,069
Total real estate mortgages	409,742		19,915		30,586		—		460,243
Real estate construction:
One-to-four family residential	22,273		773		17,053		—		40,099
Multi-family and commercial	22,428		1,076		2,269		—		25,773
Total real estate construction	44,701		1,849		19,322		—		65,872
Consumer:
Indirect	76,112		15		1,527		—		77,654
Direct	72,246		432		5,531		—		78,209
Total consumer	148,358		447		7,058		—		155,863
Total	$	739,009	$	29,160	$	73,862	$	—	842,031
Deferred loan costs, net									1,781
									$	843,812



(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