XML 61 R20.htm IDEA: XBRL DOCUMENT v2.4.0.8
Loans Receivable and Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2014
Receivables [Abstract]  
Summary of Loans Receivable
A summary of the Bank's loans receivable at June 30, 2014 and December 31, 2013 is as follows:
(in thousands)
June 30, 2014
 
December 31, 2013
Commercial and industrial
$
467,587

 
$
447,144

Commercial tax-exempt
76,674

 
81,734

Owner occupied real estate
308,708

 
302,417

Commercial construction and land development
130,449

 
133,176

Commercial real estate
544,544

 
473,188

Residential
103,564

 
97,766

Consumer
220,289

 
215,447

 
1,851,815

 
1,750,872

Less: allowance for loan losses
24,271

 
23,110

Net loans receivable
$
1,827,544

 
$
1,727,762
Summary of Nonaccrual Loans, by Type

The following table summarizes nonaccrual loans by loan type at June 30, 2014 and December 31, 2013:
(in thousands)
June 30, 2014
 
December 31, 2013
Nonaccrual loans:
 
 
 
   Commercial and industrial
$
4,291

 
$
10,217

   Commercial tax-exempt
—

 
—

   Owner occupied real estate
6,401

 
4,838

   Commercial construction and land development
9,028

 
8,587

   Commercial real estate
5,793

 
6,705

   Residential
6,341

 
7,039

   Consumer
2,479

 
2,577

Total nonaccrual loans
$
34,333

 
$
39,963
Age Analysis of Past Due Loan Receivables
The following tables are an age analysis of past due loans receivable as of June 30, 2014 and December 31, 2013:
 
 
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 Loans Receivable
June 30, 2014
 
 
 
 
 
 
 
Commercial and industrial
$
461,180

$
2,375

$
207

$
3,825

$
6,407

$
467,587

$
—

Commercial tax-exempt
76,674

—

—

—

—

76,674

—

Owner occupied real estate
300,679

1,738

2,714

3,577

8,029

308,708

—

Commercial construction and
land development
126,404

395

—

3,650

4,045

130,449

—

Commercial real estate
538,283

178

253

5,830

6,261

544,544

2,292

Residential
97,179

—

1,518

4,867

6,385

103,564

43

Consumer
216,397

1,776

805

1,311

3,892

220,289

—

Total
$
1,816,796

$
6,462

$
5,497

$
23,060

$
35,019

$
1,851,815

$
2,335


 
 
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 Loans Receivable
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
Summary of Allowances on Loan Receivables, by Class
The following tables summarize the transactions in the ALL for the three and six months ended June 30, 2014 and 2013: 
(in thousands)
Comm. and industrial
Comm. tax-exempt
Owner occupied real estate
Comm. construction and land development
Comm. real estate
Residential
Consumer
Unallocated
Total
2014
 
 
 
 
 
 
 
 
 
Balance at April 1
$
7,914

$
68

$
2,236

$
5,842

$
4,640

$
1,023

$
1,329

$
882

$
23,934

Provision charged to operating expenses
(557
)
(1
)
125

1,270

99

37

68

59

1,100

Recoveries of loans previously charged-off
244

—

43

111

101

20

16

—

535

Loans charged-off
(501
)
—

(171
)
(527
)
—

(19
)
(80
)
—

(1,298
)
Balance at June 30
$
7,100

$
67

$
2,233

$
6,696

$
4,840

$
1,061

$
1,333

$
941

$
24,271

(in thousands)
Comm. and industrial
Comm. tax-exempt
Owner occupied real estate
Comm. construction and land development
Comm. real estate
Residential
Consumer
Unallocated
Total
2014
 
 
 
 
 
 
 
 
 
Balance at January 1
$
8,178

$
72

$
2,180

$
5,559

$
4,161

$
960

$
1,303

$
697

$
23,110

Provision charged to operating expenses
(1,472
)
(5
)
(37
)
1,465

1,221

383

201

244

2,000

Recoveries of loans previously charged-off
1,249

—

286

211

174

20

39

—

1,979

Loans charged-off
(855
)
—

(196
)
(539
)
(716
)
(302
)
(210
)
—

(2,818
)
Balance at June 30
$
7,100

$
67

$
2,233

$
6,696

$
4,840

$
1,061

$
1,333

$
941

$
24,271

(in thousands)
Comm. and industrial
Comm. tax-exempt
Owner occupied real estate
Comm. construction and land development
Comm. real estate
Residential
Consumer
Unallocated
Total
2013
 
 
 
 
 
 
 
 
 
Balance at April 1
$
10,408

$
75

$
2,208

$
7,967

$
5,038

$
338

$
787

$
651

$
27,472

Provision charged to operating expenses
1,175

(1
)
51

(161
)
162

539

468

(433
)
1,800

Recoveries of loans previously charged-off
194

—

—

12

—

—

22

—

228

Loans charged-off
(1,228
)
—

(52
)
(8
)
(141
)
(14
)
(19
)
—

(1,462
)
Balance at June 30
$
10,549

$
74

$
2,207

$
7,810

$
5,059

$
863

$
1,258

$
218

$
28,038


(in thousands)
Comm. and industrial
Comm. tax-exempt
Owner occupied real estate
Comm. construction and land development
Comm. real estate
Residential
Consumer
Unallocated
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
1,522

(9
)
311

115

1,299

666

767

(571
)
4,100

Recoveries of loans previously charged-off
332

—

3

498

—

3

58

—

894

Loans charged-off
(1,264
)
—

(236
)
(25
)
(223
)
(130
)
(360
)
—

(2,238
)
Balance at June 30
$
10,549

$
74

$
2,207

$
7,810

$
5,059

$
863

$
1,258

$
218

$
28,038

A summary of the ALL and balance of loans receivable by loan class and by impairment method as of June 30, 2014 and December 31, 2013 is detailed in the tables that follow:
(in thousands)
Comm. and industrial
Comm. tax-exempt
Owner occupied real estate
Comm. construction and land development
Comm. real estate
Residential
Con
sumer
Unallocated
Total
 
 
 
 
 
 
 
 
 
 
June 30, 2014
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
Individually evaluated
for impairment
$
501

$
—

$
1,476

$
2,612

$
—

$
535

$
465

$
—

$
5,589

Collectively evaluated
for impairment
6,599

67

757

4,084

4,840

526

868

941

18,682

Total ALL
$
7,100

$
67

$
2,233

$
6,696

$
4,840

$
1,061

$
1,333

$
941

$
24,271

Loans receivable:
 
 
 
 
 
 
 
 
 
Loans evaluated
  individually
$
9,848

$
—

$
6,667

$
9,656

$
9,920

$
7,287

$
3,095

$
—

$
46,473

Loans evaluated
  collectively
457,739

76,674

302,041

120,793

534,624

96,277

217,194

—

1,805,342

Total loans receivable
$
467,587

$
76,674

$
308,708

$
130,449

$
544,544

$
103,564

$
220,289

$
—

$
1,851,815



(in thousands)
Comm. and industrial
Comm. tax-exempt
Owner occupied real estate
Comm. construction and land development
Comm. real estate
Residential
Con
sumer
Unallocated
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
Schedule of Impaired Loan Receivables
The following table presents information regarding the Company's impaired loans as of June 30, 2014 and December 31, 2013. The recorded investment represents the contractual obligation less any charged off principal.
 
June 30, 2014
December 31, 2013
(in thousands)
Recorded Investment
Unpaid Principal Balance
Related Allowance
Recorded Investment
Unpaid Principal Balance
Related Allowance
Loans with no related allowance:
 
 
 
 
 
 
   Commercial and industrial
$
9,347

$
10,106

$
—

$
9,838

$
12,587

$
—

   Commercial tax-exempt
—

—

—

—

—

—

   Owner occupied real estate
4,355

4,692

—

4,456

4,664

—

   Commercial construction and land
     development
4,929

5,988

—

8,514

9,047

—

   Commercial real estate
9,920

12,202

—

10,953

12,795

—

   Residential
4,218

4,419

—

4,901

5,366

—

   Consumer
2,630

2,891

—

2,645

2,868

—

Total impaired loans with no related
  allowance
35,399

40,298

—

41,307

47,327

—

Loans with an allowance recorded:
 
 
 
 
 
 
   Commercial and industrial
501

501

501

3,217

3,217

1,559

   Owner occupied real estate
2,312

2,312

1,476

1,366

1,366

1,366

   Commercial construction and land
     development
4,727

4,727

2,612

3,155

3,155

1,660

   Residential
3,069

3,069

535

3,078

3,078

524

   Consumer
465

465

465

476

476

476

Total impaired loans with an
  allowance recorded
11,074

11,074

5,589

11,292

11,292

5,585

Total impaired loans:
 
 
 
 
 
 
   Commercial and industrial
9,848

10,607

501

13,055

15,804

1,559

   Commercial tax-exempt
—

—

—

—

—

—

   Owner occupied real estate
6,667

7,004

1,476

5,822

6,030

1,366

   Commercial construction and land
     development
9,656

10,715

2,612

11,669

12,202

1,660

   Commercial real estate
9,920

12,202

—

10,953

12,795

—

   Residential
7,287

7,488

535

7,979

8,444

524

   Consumer
3,095

3,356

465

3,121

3,344

476

Total impaired loans
$
46,473

$
51,372

$
5,589

$
52,599

$
58,619

$
5,585

The following table presents additional information regarding the Company's impaired loans for the three and six months ended June 30, 2014 and 2013:
 
Three Months Ended
Six Months Ended
 
June 30, 2014
June 30, 2013
June 30, 2014
June 30, 2013
(in thousands)
Average Recorded Investment
Interest Income Recognized
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
$
8,079

$
36

$
9,952

$
43

$
7,985

$
76

$
9,230

$
74

   Commercial tax-exempt
—

—

—

—

—

—

—

—

   Owner occupied real estate
3,896

—

2,764

—

4,341

10

2,358

—

   Commercial construction and
     land development
4,133

14

7,806

45

6,187

31

7,915

90

   Commercial real estate
10,035

40

11,557

111

10,403

88

12,210

256

   Residential
4,218

14

4,901

19

4,353

27

4,736

36

   Consumer
2,796

10

3,305

8

2,715

17

3,184

14

Total impaired loans with no
  related allowance
33,157

114

40,285

226

35,984

249

39,633

470

Loans with an allowance recorded:
 
 
 
 
 
 
 
   Commercial and industrial
2,341

—

5,312

—

2,793

—

5,251

—

   Owner occupied real estate
2,325

—

1,418

—

2,006

—

1,427

—

   Commercial construction and
     land development
6,148

—

7,816

—

4,813

—

7,829

—

   Commercial real estate
—

—

4,159

—

—

—

4,165

—

   Residential
3,069

—

1,051

—

3,074

—

526

—

   Consumer
465

—

164

—

471

—

82

—

Total impaired loans with an
  allowance recorded
14,348

—

19,920

—

13,157

—

19,280

—

Total impaired loans:
 
 
 
 
 
 
 
 
   Commercial and industrial
10,420

36

15,264

43

10,778

76

14,481

74

   Commercial tax-exempt
—

—

—

—

—

—

—

—

   Owner occupied real estate
6,221

—

4,182

—

6,347

10

3,785

—

   Commercial construction and
     land development
10,281

14

15,622

45

11,000

31

15,744

90

   Commercial real estate
10,035

40

15,716

111

10,403

88

16,375

256

   Residential
7,287

14

5,952

19

7,427

27

5,262

36

   Consumer
3,261

10

3,469

8

3,186

17

3,266

14

Total impaired loans
$
47,505

$
114

$
60,205

$
226

$
49,141

$
249

$
58,913

$
470
Credit Quality Indicators for Loans, by Loan Type
Credit quality indicators for commercial loans broken out by loan type are presented in the following tables for the periods ended June 30, 2014 and December 31, 2013. There were no loans classified as doubtful for the periods ended June 30, 2014 or December 31, 2013.

 
June 30, 2014
(in thousands)
Pass
Special Mention
Substandard Accrual
Substandard Nonaccrual
Total
Commercial credit exposure:






   Commercial and industrial
$
429,140

$
18,826

$
15,330

$
4,291

$
467,587

   Commercial tax-exempt
76,674

—

—

—

76,674

   Owner occupied real estate
289,836

4,108

8,363

6,401

308,708

   Commercial construction and land development
120,002

—

1,419

9,028

130,449

   Commercial real estate
533,125

2,341

3,285

5,793

544,544

     Total
$
1,448,777

$
25,275

$
28,397

$
25,513

$
1,527,962


 
December 31, 2013
(in thousands)
Pass
Special Mention
Substandard Accrual
Substandard Nonaccrual
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


 
Consumer loan credit exposures are rated either performing or nonperforming as detailed below at June 30, 2014 and December 31, 2013:
 
June 30, 2014
(in thousands)
Performing
Nonperforming
Total
Consumer credit exposure:
 
 
 
   Residential
$
97,223

$
6,341

$
103,564

   Consumer
217,810

2,479

220,289

     Total
$
315,033

$
8,820

$
323,853


 
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
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 three and six month periods ended June 30, 2014 and 2013. 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:
Three Months Ended
Six Months Ended
 
June 30, 2014
June 30, 2013
June 30, 2014
June 30, 2013
(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
Number of Contracts
 
Recorded Investment at Time of Restructure
Commercial and industrial:
 
 
 
 
 
 
 
 
 
 
 
 
   Forbearance agreement
1

 
$
229

—

 
$
—

1

 
$
229

—

 
$
—

   Change in amortization period
—

 
—

7

 
1,022

3

 
261

7

 
1,022

   Combination of concessions
—

 
—

1

 
125

1

 
30

1

 
125

Owner occupied real estate:
 
 
 
 
 
 
 
 
 
 
 
 
   Forbearance agreement
—

 
—

—

 
—

—

 
—

1

 
193

   Accepting interest only for
a period of time
3

 
1,601

—

 
—

3

 
1,601

—

 
—

   Change in amortization period
—

 
—

—

 
—

1

 
128

—

 
—

Commercial construction and land development:
 
 
 
 
 
 
 
 
 
 
 
 
   Material extension of time
—

 
—

1

 
1,851

1

 
242

4

 
2,902

   Forbearance agreement
3

 
2,185

—

 
—

3

 
2,185

—

 
—

   Change in amortization period
—

 
—

—

 
—

1

 
214

—

 
—

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
   Change in amortization period
—

 
—

—

 
—

14

 
1,893

—

 
—

   Combination of concessions
—

 
—

3

 
2,945

—

 
—

3

 
2,945

Residential:
 
 
 
 
 
 
 
 
 
 
 
 
   Material extension of time
—

 
—

—

 
—

—

 
—

1

 
260

   Interest rate adjustment
—

 
—

—

 
—

1

 
143

—

 
—

Consumer:
 
 
 
 
 
 
 
 
 
 
 
 
   Material extension of time
—

 
—

—

 
—

—

 
—

1

 
35

Total
7

 
$
4,015

12

 
$
5,943

29

 
$
6,926

18

 
$
7,482
Loans Receivable Modified as Troubled Debt Restructurings, Previous 12 Months, Subsequently Defaulted
The following table represents loans receivable modified as TDR within the 12 months previous to June 30, 2014 and 2013, respectively, and that subsequently defaulted during the three and six month periods ended June 30, 2014 and 2013, 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:
Three Months Ended
Six Months Ended
 
June 30, 2014
June 30, 2013
June 30, 2014
June 30, 2013
(dollars in thousands)
Number of Contracts
 
Recorded Investment
Number of Contracts
 
Recorded Investment
Number of Contracts
 
Recorded Investment
Number of Contracts
 
Recorded Investment
   Commercial and industrial
—

 
$
—

9

 
$
6,151

7

 
$
1,288

10

 
$
6,390

   Owner occupied real estate
1

 
871

2

 
1,610

4

 
1,792

2

 
1,610

   Commercial construction
     and land development
—

 
—

2

 
2,628

2

 
1,930

3

 
6,119

   Commercial real estate
—

 
—

3

 
2,942

—

 
—

4

 
6,217

   Residential
1

 
258

—

 
—

3

 
3,470

1

 
259

   Consumer
—

 
—

—

 
—

1

 
476

2

 
177

Total
2

 
$
1,129

16

 
$
13,331

17

 
$
8,956

22

 
$
20,772