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Loans Receivable and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2013
Receivables [Abstract]  
Summary of Loans Receivable
A summary of the Bank's loans receivable at December 31, 2013 and 2012 is as follows:
 
 
December 31,
(in thousands)
2013
 
2012
Commercial and industrial
$
447,144

 
$
376,988

Commercial tax-exempt
81,734

 
92,202

Owner occupied real estate
302,417

 
268,372

Commercial construction and land development
133,176

 
100,399

Commercial real estate
473,188

 
394,404

Residential
97,766

 
83,899

Consumer
215,447

 
212,533

 
1,750,872

 
1,528,797

Less: allowance for loan losses
23,110

 
25,282

Net loans receivable
$
1,727,762

 
$
1,503,515
Summary of Nonaccrual Loans, by Type
The following table summarizes nonaccrual loans by loan type at December 31, 2013 and 2012:

 
December 31,
(in thousands)
2013
 
2012
Nonaccrual loans:
 
 
 
   Commercial and industrial
$
10,217

 
$
11,289

   Commercial tax-exempt
—

 
—

   Owner occupied real estate
4,838

 
3,119

   Commercial construction and land development
8,587

 
6,300

   Commercial real estate
6,705

 
5,659

   Residential
7,039

 
3,203

   Consumer
2,577

 
2,846

Total nonaccrual loans
$
39,963

 
$
32,416
Age Analysis of Past Due Loan Receivables
The following table is an age analysis of past due loan receivables as of December 31, 2013 and 2012:

 
 
Past Due Loans
 
 
Recorded Investment in Loans 90 Days and Greater and Still Accruing
(in thousands)
Current
30-59 Days Past Due
60-89 Days Past Due
90 Days Past Due and Greater
Total Past Due
Total Loan Receivables
December 31, 2013
 
 
 
 
 
 
 
Commercial and industrial
$
438,522

$
1,830

$
1,041

$
5,751

$
8,622

$
447,144

$
17

Commercial tax-exempt
81,734

—

—

—

—

81,734

—

Owner occupied real estate
295,278

2,618

1,674

2,847

7,139

302,417

—

Commercial construction and
land development
124,240

3,355

342

5,239

8,936

133,176

—

Commercial real estate
465,765

2,142

444

4,837

7,423

473,188

235

Residential
85,352

4,194

6,304

1,916

12,414

97,766

117

Consumer
210,906

2,095

1,335

1,111

4,541

215,447

—

Total
$
1,701,797

$
16,234

$
11,140

$
21,701

$
49,075

$
1,750,872

$
369


 
 
Past Due Loans
 
 
Recorded Investment in Loans 90 Days and Greater and Still Accruing
(in thousands)
Current
30-59 Days Past Due
60-89 Days Past Due
90 Days Past Due and Greater
Total Past Due
Total Loan Receivables
December 31, 2012
 
 
 
 
 
 
 
Commercial and industrial
$
368,769

$
1,096

$
3,256

$
3,867

$
8,219

$
376,988

$
30

Commercial tax-exempt
92,202

—

—

—

—

92,202

—

Owner occupied real estate
265,817

610

353

1,592

2,555

268,372

—

Commercial construction and
land development
89,250

4,251

4,318

2,580

11,149

100,399

188

Commercial real estate
386,821

3,846

78

3,659

7,583

394,404

—

Residential
76,587

4,303

1,252

1,757

7,312

83,899

—

Consumer
208,335

2,277

410

1,511

4,198

212,533

2

Total
$
1,487,781

$
16,383

$
9,667

$
14,966

$
41,016

$
1,528,797

$
220
Summary of Allowances on Loan Receivables, by Class
A summary of the ALL and balance of loans receivable by loan class and by impairment method as of December 31, 2013 and 2012 is detailed in the tables that follow.

(in thousands)
Comm. and industrial
Comm. tax-exempt
Owner occupied real estate
Comm. constr.
and land devel-opment
Comm. real estate
Resi-dential
Con-sumer
Unallo-cated
Total
 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
Individually evaluated
for impairment
$
1,559

$
—

$
1,366

$
1,660

$
—

$
524

$
476

$
—

$
5,585

Collectively evaluated
for impairment
6,619

72

814

3,899

4,161

436

827

697

17,525

Total ALL
$
8,178

$
72

$
2,180

$
5,559

$
4,161

$
960

$
1,303

$
697

$
23,110

Loans receivable:
 
 
 
 
 
 
 
 
 
Loans evaluated
  individually
$
13,055

$
—

$
5,822

$
11,669

$
10,953

$
7,979

$
3,121

$
—

$
52,599

Loans evaluated
  collectively
434,089

81,734

296,595

121,507

462,235

89,787

212,326

—

1,698,273

Total loans receivable
$
447,144

$
81,734

$
302,417

$
133,176

$
473,188

$
97,766

$
215,447

$
—

$
1,750,872


(in thousands)
Comm. and industrial
Comm. tax-exempt
Owner occupied real estate
Comm. constr. and land devel-opment
Comm. real estate
Resi-dential
Con-sumer
Unallo-cated
Total
December 31, 2012
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
Individually evaluated
for impairment
$
2,399

$
—

$
1,451

$
2,470

$
800

$
—

$
—

$
—

$
7,120

Collectively evaluated
for impairment
7,560

83

678

4,752

3,183

324

793

789

18,162

Total ALL
$
9,959

$
83

$
2,129

$
7,222

$
3,983

$
324

$
793

$
789

$
25,282

Loans receivable:
 
 
 
 
 
 
 
 
 
Loans evaluated
  individually
$
13,082

$
—

$
3,380

$
15,549

$
17,136

$
4,163

$
3,331

$
—

$
56,641

Loans evaluated
  collectively
363,906

92,202

264,992

84,850

377,268

79,736

209,202

—

1,472,156

Total loans receivable
$
376,988

$
92,202

$
268,372

$
100,399

$
394,404

$
83,899

$
212,533

$
—

$
1,528,797

The following tables summarize the transactions in the ALL for the years ended December 31, 2013, 2012 and 2011:
 
(in thousands)
Comm. and industrial
Comm. tax-exempt
Owner occupied real estate
Comm. construction and land development
Comm. real estate
Resi-dential
Consumer
Unallo-cated
Total
2013
 
 
 
 
 
 
 
 
 
Balance at January 1
$
9,959

$
83

$
2,129

$
7,222

$
3,983

$
324

$
793

$
789

$
25,282

Provision charged to operating expenses
524

(11
)
343

691

2,951

958

1,511

(92
)
6,875

Recoveries of loans previously charged-off
1,122

—

3

490

—

10

76

—

1,701

Loans charged-off
(3,427
)
—

(295
)
(2,844
)
(2,773
)
(332
)
(1,077
)
—

(10,748
)
Balance at December 31
$
8,178

$
72

$
2,180

$
5,559

$
4,161

$
960

$
1,303

$
697

$
23,110


(in thousands)
Comm. and industrial
Comm. tax-exempt
Owner occupied real estate
Comm. construction and land development
Comm. real estate
Resi-dential
Consumer
Unallo-cated
Total
2012
 
 
 
 
 
 
 
 
 
Balance at January 1
$
8,400

$
79

$
729

$
7,840

$
3,241

$
435

$
831

$
65

$
21,620

Provision charged to operating expenses
3,634

4

2,165

243

2,498

193

639

724

10,100

Recoveries of loans previously charged-off
227

—

7

517

97

4

67

—

919

Loans charged-off
(2,302
)
—

(772
)
(1,378
)
(1,853
)
(308
)
(744
)
—

(7,357
)
Balance at December 31
$
9,959

$
83

$
2,129

$
7,222

$
3,983

$
324

$
793

$
789

$
25,282


(in thousands)
Comm. and industrial
Comm. tax-exempt
Owner occupied real estate
Comm. construction and land development
Comm. real estate
Resi-dential
Consumer
Unallo-cated
Total
2011
 
 
 
 
 
 
 
 
 
Balance at January 1
$
9,679

$
86

$
910

$
5,420

$
4,002

$
442

$
702

$
377

$
21,618

Provision charged to operating expenses
6,510

(7
)
13

13,038

76

113

1,161

(312
)
20,592

Recoveries of loans previously charged-off
156

—

60

11

15

68

135

—

445

Loans charged-off
(7,945
)
—

(254
)
(10,629
)
(852
)
(188
)
(1,167
)
—

(21,035
)
Balance at December 31
$
8,400

$
79

$
729

$
7,840

$
3,241

$
435

$
831

$
65

$
21,620
Schedule of Impaired Loan Receivables
The following table presents additional information regarding the Company's impaired loans for the twelve months ended December 31, 2013, 2012 and 2011:

 
December 31, 2013
December 31, 2012
December 31, 2011
(in thousands)
Average Recorded Investment
Interest Income Recognized
Average Recorded Investment
Interest Income Recognized
Average Recorded Investment
Interest Income Recognized
Loans with no related allowance:
 
 
 
 
 
   Commercial and industrial
$
9,461

$
164

$
11,567

$
171

$
12,901

$
141

   Commercial tax-exempt
—

—

—

—

—

—

   Owner occupied real estate
3,087

3

3,846

150

5,333

191

   Commercial construction and
     land development
7,122

172

10,319

510

11,803

231

   Commercial real estate
15,267

366

12,434

319

9,500

192

   Residential
5,020

64

3,994

43

3,557

6

   Consumer
3,024

30

2,539

18

1,945

—

Total impaired loans with no
  related allowance
42,981

799

44,699

1,211

45,039

761

Loans with an allowance recorded:
 
 
 
 
 
   Commercial and industrial
4,563

—

5,258

—

7,974

—

   Owner occupied real estate
1,407

—

1,571

—

453

—

   Commercial construction and
     land development
7,926

—

11,375

—

4,637

—

   Commercial real estate
—

—

655

—

—

—

   Residential
1,805

—

—

—

—

—

   Consumer
280

—

—

—

—

—

Total impaired loans with an
  allowance recorded
15,981

—

18,859

—

13,064

—

Total impaired loans:
 
 
 
 
 
 
   Commercial and industrial
14,024

164

16,825

171

20,875

141

   Commercial tax-exempt
—

—

—

—

—

—

   Owner occupied real estate
4,494

3

5,417

150

5,786

191

   Commercial construction and
     land development
15,048

172

21,694

510

16,440

231

   Commercial real estate
15,267

366

13,089

319

9,500

192

   Residential
6,825

64

3,994

43

3,557

6

   Consumer
3,304

30

2,539

18

1,945

—

Total impaired loans
$
58,962

$
799

$
63,558

$
1,211

$
58,103

$
761

The following table presents information regarding the Company's impaired loans as of December 31, 2013 and 2012:

 
December 31, 2013
December 31, 2012
(in thousands)
Recorded Investment
Unpaid Principal Balance
Related Allowance
Recorded Investment
Unpaid Principal Balance
Related Allowance
Loans with no related allowance:
 
 
 
 
 
 
   Commercial and industrial
$
9,838

$
12,587

$
—

$
7,426

$
11,746

$
—

   Commercial tax-exempt
—

—

—

—

—

—

   Owner occupied real estate
4,456

4,664

—

1,929

2,301

—

   Commercial construction and land
development
8,514

9,047

—

7,716

8,500

—

   Commercial real estate
10,953

12,795

—

12,965

14,619

—

   Residential
4,901

5,366

—

4,163

4,423

—

   Consumer
2,645

2,868

—

3,331

3,547

—

Total impaired loans with no related
allowance
41,307

47,327

—

37,530

45,136

—

Loans with an allowance recorded:
 
 
 
 
 
 
   Commercial and industrial
3,217

3,217

1,559

5,656

6,526

2,399

   Owner occupied real estate
1,366

1,366

1,366

1,451

1,451

1,451

   Commercial construction and land
development
3,155

3,155

1,660

7,833

7,833

2,470

   Commercial real estate
—

—

—

4,171

4,172

800

   Residential
3,078

3,078

524

—

—

—

   Consumer
476

476

476

—

—

—

Total impaired loans with an
allowance recorded
11,292

11,292

5,585

19,111

19,982

7,120

Total impaired loans:
 
 
 
 
 
 
   Commercial and industrial
13,055

15,804

1,559

13,082

18,272

2,399

   Commercial tax-exempt
—

—

—

—

—

—

   Owner occupied real estate
5,822

6,030

1,366

3,380

3,752

1,451

   Commercial construction and land
development
11,669

12,202

1,660

15,549

16,333

2,470

   Commercial real estate
10,953

12,795

—

17,136

18,791

800

   Residential
7,979

8,444

524

4,163

4,423

—

   Consumer
3,121

3,344

476

3,331

3,547

—

Total impaired loans
$
52,599

$
58,619

$
5,585

$
56,641

$
65,118

$
7,120
Credit Quality Indicators for Commercial Loans, by Loan Type
Credit quality indicators for commercial loans broken out by loan type are presented in the following tables for the years ended December 31, 2013 and 2012. There were no loans classified as doubtful for the years ended December 31, 2013 or December 31, 2012.

 
December 31, 2013
(in thousands)
Pass
Special Mention
Substandard Accrual
Substandard Nonaccrual
Doubtful
Total
Commercial credit exposure:
 
 
 
 
 
 
   Commercial and industrial
$
410,530

$
8,064

$
18,333

$
10,217

$
—

$
447,144

   Commercial tax-exempt
81,734

—

—

—

—

81,734

   Owner occupied real estate
285,416

3,624

8,539

4,838

—

302,417

   Commercial construction and land development
120,687

—

3,902

8,587

—

133,176

   Commercial real estate
464,408

318

1,757

6,705

—

473,188

     Total
$
1,362,775

$
12,006

$
32,531

$
30,347

$
—

$
1,437,659

 
 
December 31, 2012
(in thousands)
Pass
Special Mention
Substandard Accrual
Substandard Nonaccrual
Doubtful
Total
Commercial credit exposure:
 
 
 
 
 
 
   Commercial and industrial
$
335,463

$
6,120

$
24,116

$
11,289

$
—

$
376,988

   Commercial tax-exempt
92,202

—

—

—

—

92,202

   Owner occupied real estate
253,338

4,160

7,755

3,119

—

268,372

   Commercial construction and land development
81,219

5,046

7,834

6,300

—

100,399

   Commercial real estate
379,313

574

8,858

5,659

—

394,404

     Total
$
1,141,535

$
15,900

$
48,563

$
26,367

$
—

$
1,232,365

Consumer credit exposures are rated as performing or nonperforming as detailed below at December 31, 2013 and 2012:

 
December 31, 2013
(in thousands)
Performing
Nonperforming
Total
Consumer credit exposure:
 
 
 
   Residential
$
90,727

$
7,039

$
97,766

   Consumer
212,870

2,577

215,447

     Total
$
303,597

$
9,616

$
313,213


 
December 31, 2012
(in thousands)
Performing
Nonperforming
Total
Consumer credit exposure:
 
 
 
   Residential
$
80,696

$
3,203

$
83,899

   Consumer
209,687

2,846

212,533

     Total
$
290,383

$
6,049

$
296,432
Troubled Debt Restructurings on Loan Receivables, by Concession Type
The following table presents the recorded investment at the time of restructure of new TDRs and their concession, modified during the twelve month periods ended December 31, 2013, 2012 and 2011. The recorded investment at the time of restructure was the same pre-modification and post-modification, therefore there was no financial effect of the modification on the recorded investment. The loans included are considered TDRs as a result of the Bank implementing one or more of the following concessions: granting a material extension of time, entering into a forbearance agreement, adjusting the interest rate, accepting interest only payments for an extended period of time, a change in the amortization period or a combination of any of these concessions.
New TDRs with Concession Type:
Twelve Months Ended
 
December 31, 2013
December 31, 2012
December 31, 2011
(dollars in thousands)
Number of Contracts
Recorded Investment at Time of Restructure
Number of Contracts
Recorded Investment at Time of Restructure
Number of Contracts
Recorded Investment at Time of Restructure
Commercial and industrial:
 
 
 
 
 
 
   Material extension of time
—

$
—

1

$
1,262

2

$
629

   Forbearance agreement
—

—

—

—

4

12,456

   Interest rate adjustment
—

—

1

3,404

—

—

   Change in amortization period
7

1,079

—

—

4

405

   Combination of concessions
3

749

2

3,231

—

—

Owner occupied real estate:
 
 
 
 
 
 
   Material extension of time
2

738

—

—

—

—

   Forbearance agreement
1

193

—

—

1

87

   Combination of concessions
—

—

1

1,451

—

—

Commercial construction and land development:
 
 
 
 
 
 
   Material extension of time
4

2,738

5

3,396

16

10,932

   Forbearance agreement
—

—

—

—

1

231

   Combination of concessions
—

—

1

3,546

—

—

Commercial real estate:
 
 
 
 
 
 
   Material extension of time
—

—

1

68

—

—

   Forbearance agreement
—

—

—

—

1

93

   Interest rate adjustment
—

—

—

—

1

1,194

   Change in amortization period
—

—

—

—

3

3,081

   Combination of concessions
4

6,220

1

3,275

—

—

Residential:
 
 
 
 
 
 
   Material extension of time
2

570

2

329

—

—

   Forbearance agreement
1

3,096

—

—

—

—

   Interest rate adjustment
—

—

—

—

1

195

   Change in amortization period
1

346

—

—

1

355

   Combination of concessions
1

134

1

195

1

78

Consumer:
 
 
 
 
 
 
   Material extension of time
1

35

4

426

—

—

   Forbearance agreement
1

480

—

—

—

—

   Combination of concessions
—

—

2

182

—

—

Total
28

$
16,378

22

$
20,765

36

$
29,736
Loans Receivable Modified as Troubled Debt Restructurings, Previous 12 Months, Subsequently Defaulted
The following table represents loans receivable modified as TDRs within the 12 months previous to December 31, 2013, 2012 and 2011, respectively, and that subsequently defaulted during the 12 month periods ended December 31, 2013, 2012 and 2011, respectively. The Bank's policy is to consider a loan past due or delinquent if payment is not received on or before the due date.

TDRs That Subsequently Payment Defaulted:
Twelve Months Ended
 
December 31, 2013
December 31, 2012
December 31, 2011
(dollars in thousands)
Number of Contracts
Recorded Investment
Number of Contracts
Recorded Investment
Number of Contracts
Recorded Investment
   Commercial and industrial
8

$
1,372

3

$
3,901

4

$
5,531

   Owner occupied real estate
3

926

—

—

—

—

   Commercial construction
     and land development
2

2,288

6

6,169

11

9,162

   Commercial real estate
1

3,275

1

66

2

747

   Residential
2

3,338

2

258

3

617

   Consumer
2

553

4

308

—

—

Total
18

$
11,752

16

$
10,702

20

$
16,057