Loans (Tables)

12 Months Ended

Dec. 31, 2013


	December 31,	December 31,
	2013	2012

Commercial	$ 450,113	$ 470,109
Commercial mortgage *	625,810	617,069
Construction	258,889	258,684
Total commercial loans	1,334,812	1,345,862
Direct lease financing	175,610	156,697
Residential mortgage	94,850	97,717
Consumer loans and others	346,334	296,915
	1,951,606	1,897,191
Unamortized loan fees and costs	6,839	5,663
Total loans, net of deferred loan costs	$ 1,958,445	$ 1,902,854

Supplemental loan data:
Construction 1-4 family	$ 48,394	$ 60,343
Commercial construction, acquisition and development	210,495	198,341
	$ 258,889	$ 258,684

* At December 31, 2013 the Company's owner-occupied real estate loans amounted to $196.6 million, or 31.4% of commercial mortgages compared to $172.5 million, or 28.0% at December 31, 2012.

Impaired Loans


	Recorded investment	Unpaid principal balance	Related allowance	Average recorded investment	Interest income recognized
December 31, 2013
Without an allowance recorded
Construction	$ 1,104	$ 1,454	$ -	$ 1,506	$ -
Commercial mortgage	1,759	1,759	-	4,662	-
Commercial	9,021	11,131	-	7,014	-
Consumer - home equity	927	927	-	927	-
Residential	1,175	1,175	-	873	-
With an allowance recorded
Construction	563	563	353	2,437	-
Commercial mortgage	4,102	4,102	1,476	4,581	-
Commercial	20,846	21,276	9,369	15,670	-
Consumer - home equity	429	429	135	190	-
Residential	841	841	84	373	-
Total
Construction	1,667	2,017	353	3,943	-
Commercial mortgage	5,861	5,861	1,476	9,243	-
Commercial	29,867	32,407	9,369	22,684	-
Consumer - home equity	1,356	1,356	135	1,117	-
Residential	2,016	2,016	84	1,246	-

December 31, 2012
Without an allowance recorded
Construction	$ 1,656	$ 5,054	$ -	$ 1,060	$ -
Commercial mortgage	4,583	6,730	-	2,563	-
Commercial	4,356	5,481	-	2,485	-
Consumer - home equity	927	927	-	927	-
Residential	-	-	-	253	-
With an allowance recorded
Construction	3,158	4,147	1,273	6,650	-
Commercial mortgage	4,806	4,806	1,706	4,233	-
Commercial	6,264	7,067	4,069	5,571	-
Consumer - home equity	-	-	-	65	-
Residential	91	91	69	56	-
Total
Construction	4,814	9,201	1,273	7,710	-
Commercial mortgage	9,389	11,536	1,706	6,796	-
Commercial	10,620	12,548	4,069	8,056	-
Consumer - home equity	927	927	-	992	-
Residential	91	91	69	309	-

Non-accrual Loans, Loans Past Due 90 Days And Other Real Estate Owned And Delinquent Loans By Loan Category


	December 31,
	2013	2012
	(in thousands)

Non-accrual loans
Construction *	$ 1,667	$ 4,538
Commercial mortgage *	5,861	9,175
Commercial *	29,651	10,459
Consumer	1,356	927
Residential	2,016	91
Total non-accrual loans	40,551	25,190

Loans past due 90 days or more	110	4,435
Total non-performing loans	40,661	29,625
Other real estate owned	26,295	4,241
Total non-performing assets	$ 66,956	$ 33,866

* Included in the non-accrual loan balances as of December 31, 2013 are four troubled debt restructured loans. $263,000 in construction and $3.1 million in commercial mortgage. Included in the non-accrual loan balances as of December 31, 2012 are three troubled debt restructured loans: $276,000 in construction, $214,000 in commercial mortgage and $161,000 in commercial.

Loans Modified And Considered Troubled Debt Restructurings


	December 31, 2013			December 31, 2012
	Number	Pre-modification recorded investment	Post-modification recorded investment	Number	Pre-modification recorded investment	Post-modification recorded investment
Commercial	1	$ 217	$ 217	2	$ 2,416	$ 2,416
Commercial mortgage	3	3,055	3,055	3	3,144	3,144
Construction	1	263	263	3	1,479	1,479
Total	5	$ 3,535	$ 3,535	8	$ 7,039	$ 7,039

Loans Modified As Troubled Debt Restructurings


	December 31, 2013			December 31, 2012
	Adjusted interest rate	Extended maturity	Combined rate and maturity	Adjusted interest rate	Extended maturity	Combined rate and maturity
Commercial	$ -	$ 217	$ -	$ -	$ 2,255	$ 161
Commercial mortgage	681	214	2,160	714	214	2,216
Construction	-	263	-	-	1,479	-
Total	$ 681	$ 694	$ 2,160	$ 714	$ 3,948	$ 2,377

Summary Of Restructured Loans Within The Last Twelve Months That Have Subsequently Defaulted


	December 31, 2013
	Number	Pre-modification recorded investment
Commercial mortgage	1	$ 681
Total	1	$ 681

Changes In Allowance For Loan And Lease Losses By Loan Category


		Commercial		Residential		Direct lease
	Commercial	mortgage	Construction	mortgage	Consumer	financing	Unallocated	Total
December 31, 2013
Beginning balance	$ 12,244	$ 6,223	$ 9,505	$ 2,089	$ 1,799	$ 239	$ 941	$ 33,040
Charge-offs	(9,920)	(4,851)	(10,295)	(54)	(489)	(29)	-	(25,638)
Recoveries	67	98	1,019	-	88	8	-	1,280
Provision	15,815	5,414	10,330	(1,374)	(461)	93	(317)	29,500
Ending balance	$ 18,206	$ 6,884	$ 10,559	$ 661	$ 937	$ 311	$ 624	$ 38,182

Ending balance: Individually evaluated for impairment	$ 9,369	$ 1,476	$ 353	$ 84	$ 135	$ -	$ -	$ 11,417

Ending balance: Collectively evaluated for impairment	$ 8,837	$ 5,408	$ 10,206	$ 577	$ 802	$ 311	$ 624	$ 26,765


Loans:
Ending balance	$ 450,113	$ 625,810	$ 258,889	$ 94,850	$ 346,334	$ 175,610	$ 6,839	$ 1,958,445

Ending balance: Individually evaluated for impairment	$ 29,867	$ 5,861	$ 1,667	$ 2,016	$ 1,356	$ -	$ -	$ 40,767

Ending balance: Collectively evaluated for impairment	$ 420,246	$ 619,949	$ 257,222	$ 92,834	$ 344,978	$ 175,610	$ 6,839	$ 1,917,678


December 31, 2012
Beginning balance	$ 10,214	$ 9,274	$ 5,352	$ 2,090	$ 1,346	$ 254	$ 1,038	$ 29,568
Charge-offs	(3,682)	(5,828)	(11,317)	-	(339)	(87)	-	(21,253)
Recoveries	566	1,528	96	85	-	12	-	2,287
Provision	5,146	1,249	15,374	(86)	792	60	(97)	22,438
Ending balance	$ 12,244	$ 6,223	$ 9,505	$ 2,089	$ 1,799	$ 239	$ 941	$ 33,040

Ending balance: Individually evaluated for impairment	$ 4,069	$ 1,706	$ 1,273	$ 69	$ -	$ -	$ -	$ 7,117

Ending balance: Collectively evaluated for impairment	$ 8,175	$ 4,517	$ 8,232	$ 2,020	$ 1,799	$ 239	$ 941	$ 25,923


Loans:
Ending balance	$ 470,109	$ 617,069	$ 258,684	$ 97,717	$ 296,915	$ 156,697	$ 5,663	$ 1,902,854

Ending balance: Individually evaluated for impairment	$ 10,620	$ 9,389	$ 4,814	$ 91	$ 927	$ -	$ -	$ 25,841

Ending balance: Collectively evaluated for impairment	$ 459,489	$ 607,680	$ 253,870	$ 97,626	$ 295,988	$ 156,697	$ 5,663	$ 1,877,013

Delinquent Loans By Loan Category


	30-59 Days	60-89 Days	Greater than		Total		Total
December 31, 2013	past due	past due	90 days	Nonaccrual	past due	Current	loans
Commercial	$ -	$ -	$ -	$ 29,651	$ 29,651	$ 420,462	$ 450,113
Commercial mortgage	998	5,999	-	5,861	12,858	612,952	625,810
Construction	-	-	-	1,667	1,667	257,222	258,889
Direct lease financing	3,427	1,293	110	-	4,830	170,780	175,610
Consumer - other	425	-	-	1,356	1,781	300,909	302,690
Consumer - home equity	18	-	-	-	18	43,626	43,644
Residential mortgage	-	-	-	2,016	2,016	92,834	94,850
Unamortized loan fees and costs	-	-	-	-	-	6,839	6,839
	$ 4,868	$ 7,292	$ 110	$ 40,551	$ 52,821	$ 1,905,624	$ 1,958,445

December 31, 2012
Commercial	$ -	$ 5,750	$ 1,350	$ 10,459	$ 17,559	$ 452,550	$ 470,109
Commercial mortgage	686	300	2,412	9,175	12,573	604,496	617,069
Construction	-	-	667	4,538	5,205	253,479	258,684
Direct lease financing	1,313	1,168	6	-	2,487	154,210	156,697
Consumer - other	330	99	-	927	1,356	251,915	253,271
Consumer - home equity	2	6	-	-	8	43,636	43,644
Residential mortgage	749	1,175	-	91	2,015	95,702	97,717
Unamortized loan fees and costs	-	-	-	-	-	5,663	5,663
	$ 3,080	$ 8,498	$ 4,435	$ 25,190	$ 41,203	$ 1,861,651	$ 1,902,854

Loans By Categories


					Commercial		Residential
	Commercial		Construction		mortgage		mortgage
	12/31/2013	12/31/2012	12/31/2013	12/31/2012	12/31/2013	12/31/2012	12/31/2013	12/31/2012
Risk Rating
Pass	$ 377,482	$ 335,563	$ 226,926	$ 247,214	$ 517,164	$ 489,615	$ 25,812	$ 28,495
Special Mention	149	6,788	-	-	6,997	23,200	-	1,175
Substandard	29,867	12,252	1,667	5,205	5,861	9,704	2,016	-
Doubtful	-	-	-	-	-	-	-	91
Loss	-	-	-	-	-	-	-	-
Unrated subject to review *	6,854	17,614	25,255	2,301	29,467	18,286	-	236
Unrated not subject to review *	35,761	97,892	5,041	3,964	66,321	76,264	67,022	67,720
Total	$ 450,113	$ 470,109	$ 258,889	$ 258,684	$ 625,810	$ 617,069	$ 94,850	$ 97,717

			Direct lease
	Consumer		financing		Unamortized costs		Total
	12/31/2013	12/31/2012	12/31/2013	12/31/2012	12/31/2013	12/31/2012	12/31/2013	12/31/2012
Risk Rating
Pass	$ 116,292	$ 89,128	$ 58,545	$ 52,241	$ -	$ -	$ 1,322,221	$ 1,242,256
Special Mention	1,348	99	-	-	-	-	8,494	31,262
Substandard	1,356	3,626	-	69	-	-	40,767	30,856
Doubtful	-	-	-	-	-	-	-	91
Loss	-	-	-	-	-	-	-	-
Unrated subject to review *	524	4,593	2,244	3,337	-	-	64,344	46,367
Unrated not subject to review *	226,814	199,469	114,821	101,050	6,839	5,663	522,619	552,022
Total	$ 346,334	$ 296,915	$ 175,610	$ 156,697	$ 6,839	$ 5,663	$ 1,958,445	$ 1,902,854

* Unrated loans consist of performing loans which did not exhibit any negative characteristics which would require the loan to be evaluated, or fell below the dollar threshold requiring review and was not one of the loans otherwise selected in ongoing portfolio evaluation The scope of the Bank’s loan review policy encompasses commercial and construction loans and leases which singly or in the aggregate in the case of loans with related borrowers, equal or exceed $3,000,000. It is present Bank policy that a minimum of 60% of the loan portfolio be reviewed every eighteen months. The loan portfolio review coverage was approximately 70% at December 31, 2013 and approximately 69% at December 31, 2012. This review is performed by the loan review department, which is independent of the loan department and reports directly to the audit committee. All classified loans are reviewed by the independent loan review function of the Bank. Potential problem loans which are identified by either the independent loan review department or line management are also reviewed. All loans are subject to review by their relationship manager and senior loan personnel. Also, many of the Bank’s loans are relatively short term, and are subject to reconsideration with a full review in loan committee between one and three years