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

12 Months Ended

Dec. 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:



(dollars in thousands)	For the Year Ended December 31, 2013
	Commercial			Real estate mortgage			Real estate construction			Consumer			Total
Beginning balance	$	4,405		$	6,516		$	3,050		$	3,176		$	17,147
Provision	245			353			(372		)	1,649			1,875
Charge-offs	(562		)	(225		)	(70		)	(2,439		)	(3,296		)
Recoveries	235			183			442			507			1,367
Ending Balance	$	4,323		$	6,827		$	3,050		$	2,893		$	17,093



(dollars in thousands)	For the 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

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:



(dollars in thousands)	December 31, 2013
	Commercial		Real estate mortgage		Real estate construction		Consumer		Total
Allowance for non-covered loan losses:
Individually evaluated for impairment	$	1,578	$	1,558	$	1,226	$	44	$	4,406
Collectively evaluated for impairment	2,745		5,269		1,824		2,849		12,687
Total allowance for non-covered loan losses	$	4,323	$	6,827	$	3,050	$	2,893	$	17,093
Non-covered loans:
Individually evaluated for impairment	$	8,254	$	12,612	$	11,513	$	439	$	32,818
Collectively evaluated for impairment	171,660		476,536		44,735		161,234		854,165
Total non-covered loans ⁽¹⁾	$	179,914	$	489,148	$	56,248	$	161,673	$	886,983

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

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

Schedule of Impaired Loans and the Related Allowance for Loan Losses

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



(dollars in thousands)	December 31, 2013				December 31, 2012
	Recorded investment		Allowance		Recorded investment		Allowance
With no related allowance recorded:
Nonaccrual loans	$	8,123	$	—	$	15,479	$	—
Restructured loans	4,118		—		8,635		—
Total with no related allowance	$	12,241	$	—	$	24,114	$	—
With an allowance recorded:
Nonaccrual loans	$	286	$	10	$	72	$	5
Restructured loans	20,291		4,396		17,668		3,550
Total with an allowance recorded	20,577		4,406		17,740		3,555
Total	$	32,818	$	4,406	$	41,854	$	3,555

Schedule of Impaired Non Covered Loans, By Class

The following table further summarizes impaired non-covered loans, by class:



(dollars in thousands)	December 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	$	2,558	$	3,036	$	—	$	3,737	$	4,231	$	—
Real estate mortgages:
One-to-four family residential	544		629		—		938		1,132		—
Multi-family and commercial	2,766		2,981		—		3,605		4,283		—
Total real estate mortgages	3,310		3,610		—		4,543		5,415		—
Real estate construction:
One-to-four family residential	6,255		9,773		—		15,251		23,133		—
Total real estate construction	6,255		9,773		—		15,251		23,133		—
Consumer:
Direct	118		269		—		583		1,017		—
Total consumer	118		269		—		583		1,017		—
Total with no related allowance recorded	$	12,241	$	16,688	$	—	$	24,114	$	33,796	$	—
With an allowance recorded:
Commercial	$	5,696	$	5,711	$	1,578	$	6,237	$	6,237	$	1,468
Real estate mortgages:
One-to-four family residential	728		728		81		524		524		53
Multi-family and commercial	8,574		8,960		1,477		6,290		6,657		1,101
Total real estate mortgages	9,302		9,688		1,558		6,814		7,181		1,154
Real estate construction:
One-to-four family residential	5,010		5,010		1,182		4,094		4,112		855
Multi-family and commercial	248		248		44		262		262		26
Total real estate construction	5,258		5,258		1,226		4,356		4,374		881
Consumer:
Direct	321		322		44		333		333		52
Total consumer	321		322		44		333		333		52
Total with an allowance recorded	20,577		20,979		4,406		17,740		18,125		3,555
Total impaired non-covered loans	$	32,818	$	37,667	$	4,406	$	41,854	$	51,921	$	3,555

Troubled Debt Restructurings

Troubled debt restructurings were as follows:



(dollars in thousands)	December 31, 2013						December 31, 2012
	Accrual status		Nonaccrual status		Total modifications		Accrual status		Nonaccrual status		Total modifications
Troubled debt restructurings:
Commercial	$	6,077	$	506	$	6,583	$	7,008	$	1,160	$	8,168
Real estate mortgages:
One-to-four family residential	765		320		1,085		573		340		913
Multi-family and commercial	10,457		843		11,300		7,993		1,823		9,816
Total real estate mortgage	11,222		1,163		12,385		8,566		2,163		10,729
Real estate construction:
One-to-four family residential	6,540		4,664		11,204		10,135		9,013		19,148
Multi-family and commercial	248		—		248		262		—		262
Total real estate construction	6,788		4,664		11,452		10,397		9,013		19,410
Consumer:
Direct	322		32		354		332		20		352
Total consumer	322		32		354		332		20		352
Total restructured loans	$	24,409	$	6,365	$	30,774	$	26,303	$	12,356	$	38,659

Summary of Loans Restructured in Period

The following tables present loans restructured for the years ended December 31, 2013 and 2012. During the periods presented, all modification terms were a combination of terms employed by the Company.



(dollars in thousands)	For the Year Ended December 31, 2013
	Number of contracts	Pre-modification recorded investment		Post-modification recorded investment
Troubled debt restructurings:
Commercial	2	$	107	$	106
Real estate mortgages:
One-to-four family residential	1	213		213
Multi-family and commercial	7	3,266		3,266
Total real estate mortgage	8	3,479		3,479
Real estate construction:
One-to-four family residential	2	175		85
Total real estate construction	2	175		85
Consumer:
Direct	1	23		20
Total consumer	1	23		20
Total restructured loans	13	$	3,784	$	3,690



(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
Total restructured loans	26	$	7,404	$	6,853

Schedule of Past Due Status of Loans Receivable

The following table summarizes non-covered nonaccrual loans and past due loans, by class:



(dollars in thousands)	December 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	$	449	$	51	$	—	$	500	$	2,176	$	177,238	$	179,914
Real estate mortgages:
One-to-four family residential	—		211		—		211		507		41,093		41,811
Multi-family and commercial	939		—		—		939		883		445,515		447,337
Total real estate mortgages	939		211		—		1,150		1,390		486,608		489,148
Real estate construction:
One-to-four family residential	59		—		—		59		4,725		29,144		33,928
Multi-family and commercial	—		—		—		—		—		22,320		22,320
Total real estate construction	59		—		—		59		4,725		51,464		56,248
Consumer:
Indirect	798		101				899		—		79,001		79,900
Direct	565		5		—		570		118		81,085		81,773
Total consumer	1,363		106		—		1,469		118		160,086		161,673
Total	$	2,810	$	368	$	—	$	3,178	$	8,409	$	875,396	886,983
Deferred loan costs, net													1,703
Total non-covered loans													$	888,686



(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:



(dollars in thousands)	December 31, 2013
	Pass/Watch		Special mention		Substandard		Doubtful/Loss		Total
Commercial	$	158,571	$	6,340	$	15,003	$	—	$	179,914
Real estate mortgages:
One-to-four family residential	37,720		30		4,061		—		41,811
Multi-family and commercial	387,392		29,540		30,405		—		447,337
Total real estate mortgages	425,112		29,570		34,466		—		489,148
Real estate construction:
One-to-four family residential	21,173		3,162		9,593		—		33,928
Multi-family and commercial	20,224		—		2,096		—		22,320
Total real estate construction	41,397		3,162		11,689		—		56,248
Consumer:
Indirect	78,661		11		1,228		—		79,900
Direct	76,501		1,509		3,763		—		81,773
Total consumer	155,162		1,520		4,991		—		161,673
Total	$	780,242	$	40,592	$	66,149	$	—	886,983
Deferred loan costs, net									1,703
									$	888,686



(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