LOAN LOSS ALLOWANCE (Tables)

6 Months Ended

Jun. 30, 2014

LOAN LOSS ALLOWANCE

Schedule of activity in the allowance for loan losses

Business Activities Loans

(In thousands)	Residential mortgages			Commercial real estate		Commercial and industrial loans		Consumer		Unallocated		Total
June 30, 2014
Balance at beginning of period	$	6,937		$	13,705	$	5,173	$	3,644	$	68	$	29,527
Charged-off loans	1,159			1,645		1,426		571		—		4,801
Recoveries on charged-off loans	64			6		22		177		—		269
Provision for loan losses	(299		)	2,389		1,396		1,597		143		5,226
Balance at end of period	$	5,543		$	14,455	$	5,165	$	4,847	$	211	$	30,221
Individually evaluated for impairment	57			712		475		—		—		1,244
Collectively evaluated	5,486			13,743		4,690		4,847		211		28,977
Total	$	5,543		$	14,455	$	5,165	$	4,847	$	211	$	30,221

Business Activities Loans

(In thousands)	Residential mortgages		Commercial real estate		Commercial and industrial loans		Consumer		Unallocated		Total
June 30, 2013
Balance at beginning of period	$	5,928	$	18,863	$	5,605	$	1,466	$	29	$	31,891
Charged-off loans	836		2,015		694		600		—		4,145
Recoveries on charged-off loans	150		451		81		113		—		795
Provision for loan losses	389		777		376		1,919		117		3,578
Balance at end of period	$	5,631	$	18,076	$	5,368	$	2,898	$	146	$	32,119
Individually evaluated for impairment	302		1,812		903		295		—		3,312
Collectively evaluated	5,329		16,264		4,465		2,603		146		28,807
Total	$	5,631	$	18,076	$	5,368	$	2,898	$	146	$	32,119

Acquired Loans

(In thousands)	Residential mortgages		Commercial real estate		Commercial and industrial loans		Consumer		Unallocated		Total
June 30, 2014
Balance at beginning of period	$	625	$	2,339	$	597	$	235	$	—	$	3,796
Charged-off loans	723		495		176		638		—		2,032
Recoveries on charged-off loans	161		1		24		23		—		209
Provision for loan losses	599		246		624		690		—		2,159
Balance at end of period	$	662	$	2,091	$	1,069	$	310	$	—	$	4,132
Individually evaluated for impairment	60		306		20		—		—		386
Collectively evaluated	602		1,785		1,049		310		—		3,746
Total	$	662	$	2,091	$	1,069	$	310	$	—	$	4,132

Acquired Loans

(In thousands)	Residential mortgages			Commercial real estate		Commercial and industrial loans		Consumer		Unallocated			Total
June 30, 2013
Balance at beginning of period	$	509		$	390	$	96	$	314	$	8		$	1,317
Charged-off loans	422			682		134		574		—			1,812
Recoveries on charged-off loans	(4		)	11		23		72		—			102
Provision for loan losses	435			706		112		519		(250		)	1,522
Balance at end of period	$	518		$	425	$	97	$	331	$	(242	)	$	1,129
Individually evaluated for impairment	70			29		—		—		—			99
Collectively evaluated	448			396		97		331		(242		)	1,030
Total	518			425		97		331		(242		)	1,129

Schedule of loans by risk rating

Business Activities Loans

Residential Mortgages

Credit Risk Profile by Internally Assigned Grade

	1-4 family				Construction				Total residential mortgages
(In thousands)	June 30, 2014		Dec. 31, 2013		June 30, 2014		Dec. 31, 2013		June 30, 2014		Dec. 31, 2013
Grade:
Pass	$	1,068,377	$	1,019,732	$	17,162	$	18,117	$	1,085,539	$	1,037,849
Special mention	169		623		—		—		169		623
Substandard	4,885		7,382		—		41		4,885		7,423
Total	$	1,073,431	$	1,027,737	$	17,162	$	18,158	$	1,090,593	$	1,045,895

Commercial Real Estate

Credit Risk Profile by Creditworthiness Category

	Construction				Single and multi-family				Other				Total commercial real estate
(In thousands)	June 30, 2014		Dec. 31, 2013		June 30, 2014		Dec. 31, 2013		June 30, 2014		Dec. 31, 2013		June 30, 2014		Dec. 31, 2013
Grade:
Pass	$	161,733	$	120,071	$	86,250	$	59,636	$	940,577	$	800,672	$	1,188,560	$	980,379
Special mention	—		—		137		140		5,015		8,150		5,152		8,290
Substandard	3,543		5,176		3,297		3,717		61,603		61,807		68,443		70,700
Doubtful	—		—		—		—		73		642		73		642
Total	$	165,276	$	125,247	$	89,684	$	63,493	$	1,007,268	$	871,271	$	1,262,228	$	1,060,011

Commercial and Industrial Loans

Credit Risk Profile by Creditworthiness Category

	Asset based lending				Other				Total comm. and industrial loans
(In thousands)	June 30, 2014		Dec. 31, 2013		June 30, 2014		Dec. 31, 2013		June 30, 2014		Dec. 31, 2013
Grade:
Pass	$	328,681	$	294,241	$	326,244	$	313,984	$	654,925	$	608,225
Special mention	—		—		1,266		884		1,266		884
Substandard	—		—		10,291		7,725		10,291		7,725
Doubtful	—		—		—		603		—		603
Total	$	328,681	$	294,241	$	337,801	$	323,196	$	666,482	$	617,437

Consumer Loans

Credit Risk Profile Based on Payment Activity

	Home equity				Auto and other				Total consumer loans
(In thousands)	June 30, 2014		Dec. 31, 2013		June 30, 2014		Dec. 31, 2013		June 30, 2014		Dec. 31, 2013
Performing	$	239,017	$	231,594	$	296,630	$	212,922	$	535,647	$	444,516
Nonperforming	1,284		1,083		380		249		1,664		1,332
Total	$	240,301	$	232,677	$	297,010	$	213,171	$	537,311	$	445,848

Acquired Loans

Residential Mortgages

Credit Risk Profile by Internally Assigned Grade

	1-4 family				Construction				Total residential mortgages
(In thousands)	June 30, 2014		Dec. 31, 2013		June 30, 2014		Dec. 31, 2013		June 30, 2014		Dec. 31, 2013
Grade:
Pass	$	302,182	$	330,353	$	1,043	$	1,081	$	303,225	$	331,434
Special mention	801		437		—		—		801		437
Substandard	2,612		2,577		—		3,931		2,612		6,508
Total	$	305,595	$	333,367	$	1,043	$	5,012	$	306,638	$	338,379

Commercial Real Estate

Credit Risk Profile by Creditworthiness Category

	Construction				Single and multi-family				Other				Total commercial real estate
(In thousands)	June 30, 2014		Dec. 31, 2013		June 30, 2014		Dec. 31, 2013		June 30, 2014		Dec. 31, 2013		June 30, 2014		Dec. 31, 2013
Grade:
Pass	$	4,211	$	7,154	$	48,043	$	46,961	$	227,566	$	254,787	$	279,820	$	308,902
Special mention	342		—		827		4,799		6,796		9,034		7,965		13,833
Substandard	2,271		6,616		12,550		13,067		14,666		14,691		29,487		34,374
Total	$	6,824	$	13,770	$	61,420	$	64,827	$	249,028	$	278,512	$	317,272	$	357,109

Commercial and Industrial Loans

Credit Risk Profile by Creditworthiness Category

	Asset based lending				Other				Total comm. and industrial loans
(In thousands)	June 30, 2014		Dec. 31, 2013		June 30, 2014		Dec. 31, 2013		June 30, 2014		Dec. 31, 2013
Grade:
Pass	$	—	$	3,130	$	54,037	$	59,615	$	54,037	$	62,745
Special mention	—		—		3,156		2,396		3,156		2,396
Substandard	—		—		4,284		4,715		4,284		4,715
Total	$	—	$	3,130	$	61,477	$	66,726	$	61,477	$	69,856

Consumer Loans

Credit Risk Profile Based on Payment Activity

	Home equity				Auto and other				Total consumer loans
(In thousands)	June 30, 2014		Dec. 31, 2013		June 30, 2014		Dec. 31, 2013		June 30, 2014		Dec. 31, 2013
Performing	$	68,791	$	73,552	$	136,769	$	170,275	$	205,560	$	243,827
Nonperforming	917		602		1,825		1,559		2,742		2,161
Total	$	69,708	$	74,154	$	138,594	$	171,834	$	208,302	$	245,988

Summary of information about total loans rated special mention or lower

	June 30, 2014						December 31, 2013
(In thousands)	Business Activities Loans		Acquired Loans		Total		Business Activities Loans		Acquired Loans		Total
Non-Accrual	$	17,739	$	8,319	$	26,058	$	18,472	$	8,983	$	27,455
Substandard Accruing	67,583		30,635		98,218		70,667		38,891		109,558
Total Classified	85,322		38,954		124,276		89,139		47,874		137,013
Special Mention	6,621		12,094		18,715		10,081		17,853		27,934
Total Criticized	$	91,943	$	51,048	$	142,991	$	99,220	$	65,727	$	164,947