Note 5 – Allowance for Loan and Lease Losses

The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of March 31, 2014, December 31, 2013 and March 31, 2013:

	March 31, 2014
(in thousands)	Commercial Construction			Commercial Secured by Real Estate			Equipment Lease Financing			Commercial Other			Real Estate Construction		Real Estate Mortgage		Home Equity		Consumer Direct		Consumer Indirect		Total
Allowance for loan losses
Beginning balance	$	3,396		$	14,535		$	121		$	5,238		$	397	$	4,939	$	601	$	1,127	$	3,654	$	34,008
Provision charged to expense		(296	)		(106	)		(14	)		(13	)		44		356		51		753		570		1,345
Losses charged off		0			322			0			633			0		164		27		453		946		2,545
Recoveries		7			76			0			162			1		12		1		146		402		807
Ending balance	$	3,107		$	14,183		$	107		$	4,754		$	442	$	5,143	$	626	$	1,573	$	3,680	$	33,615

Ending balance:
Individually evaluated for impairment	$	939		$	1,084		$	0		$	112		$	0	$	0	$	0	$	0	$	0	$	2,135
Collectively evaluated for impairment	$	2,168		$	13,099		$	107		$	4,642		$	442	$	5,143	$	626	$	1,573	$	3,680	$	31,480

Loans
Ending balance:
Individually evaluated for impairment	$	9,708		$	39,953		$	0		$	14,604		$	0	$	1,021	$	0	$	0	$	0	$	65,286
Collectively evaluated for impairment	$	101,564		$	834,484		$	8,122		$	337,044		$	59,730	$	694,493	$	84,694	$	117,497	$	282,594	$	2,520,222

	December 31, 2013
(in thousands)	Commercial Construction		Commercial Secured by Real Estate		Equipment Lease Financing			Commercial Other		Real Estate Construction		Real Estate Mortgage		Home Equity		Consumer Direct		Consumer Indirect		Total
Allowance for loan losses
Beginning balance	$	4,033	$	13,541	$	126		$	5,469	$	376	$	4,767	$	563	$	1,102	$	3,268	$	33,245
Provision charged to expense		189		2,438		(5	)		1,477		106		860		268		696		2,539		8,568
Losses charged off		1,135		1,607		0			2,265		89		744		241		1,166		3,802		11,049
Recoveries		309		163		0			557		4		56		11		495		1,649		3,244
Ending balance	$	3,396	$	14,535	$	121		$	5,238	$	397	$	4,939	$	601	$	1,127	$	3,654	$	34,008

Ending balance:
Individually evaluated for impairment	$	1,189	$	1,005	$	0		$	102	$	0	$	0	$	0	$	0	$	0	$	2,296
Collectively evaluated for impairment	$	2,207	$	13,530	$	121		$	5,136	$	397	$	4,939	$	601	$	1,127	$	3,654	$	31,712

Loans
Ending balance:
Individually evaluated for impairment	$	9,810	$	39,297	$	0		$	15,169	$	0	$	1,024	$	0	$	0	$	0	$	65,300
Collectively evaluated for impairment	$	100,969	$	833,245	$	8,840		$	359,712	$	56,075	$	696,577	$	84,880	$	122,215	$	287,541	$	2,550,054

	March 31, 2013
(in thousands)	Commercial Construction			Commercial Secured by Real Estate		Equipment Lease Financing		Commercial Other			Real Estate Construction			Real Estate Mortgage		Home Equity		Consumer Direct		Consumer Indirect		Total
Allowance for loan losses
Beginning balance	$	4,033		$	13,541	$	126	$	5,469		$	376		$	4,767	$	563	$	1,102	$	3,268	$	33,245
Provision charged to expense		(212	)		484		2		(155	)		(4	)		334		50		165		895		1,559
Losses charged off		0			365		0		332			0			131		47		314		999		2,188
Recoveries		6			22		0		169			0			10		5		145		420		777
Ending balance	$	3,827		$	13,682	$	128	$	5,151		$	372		$	4,980	$	571	$	1,098	$	3,584	$	33,393

Ending balance:
Individually evaluated for impairment	$	1,911		$	1,192	$	0	$	322		$	0		$	0	$	0	$	0	$	0	$	3,425
Collectively evaluated for impairment	$	1,916		$	12,490	$	128	$	4,829		$	372		$	4,980	$	571	$	1,098	$	3,584	$	29,968

Loans
Ending balance:
Individually evaluated for impairment	$	11,228		$	37,923	$	0	$	16,646		$	0		$	657	$	0	$	0	$	0	$	66,454
Collectively evaluated for impairment	$	91,075		$	809,884	$	9,944	$	358,763		$	51,978		$	695,664	$	79,899	$	119,191	$	280,462	$	2,496,860