Loans (Tables)

9 Months Ended

Sep. 30, 2013

Receivables [Abstract]

Outstanding Loan Balances

Outstanding loan balances consist of the following at September 30, 2013, and December 31, 2012:

(Dollars in thousands)	September 30, 2013			December 31, 2012
Commercial	$	169,193		$	232,276
Real estate – construction loans		15,625			16,863
Real estate – commercial (investor)		208,530			211,318
Real estate – commercial (owner occupied)		80,101			75,085
Real estate – ITIN loans		57,232			60,105
Real estate – mortgage		15,872			18,452
Real estate – equity lines		43,989			45,181
Consumer		3,753			4,422
Other		267			349
Gross portfolio loans	$	594,562		$	664,051
Less:
Deferred loan fees, net		(282	)		(312	)
Allowance for loan and lease losses		13,542			11,103
Net portfolio loans	$	581,302		$	653,260

Age Analysis of Past Due Loans

Age analysis of past due loans, segregated by class of loans, as of September 30, 2013, and December 31, 2012, were as follows:

(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total		Recorded Investment > 90 Days and Accruing
September 30, 2013
Commercial	$	13	$	0	$	250	$	263	$	168,930	$	169,193	$	0
Commercial real estate:
Construction		0		0		0		0		15,625		15,625		0
Other		1,102		0		0		1,102		287,529		288,631		0
Residential:
1-4 family		2,382		701		4,141		7,224		65,880		73,104		0
Home equities		249		25		0		274		43,715		43,989		0
Consumer		3		0		0		3		4,017		4,020		0
Total	$	3,749	$	726	$	4,391	$	8,866	$	585,696	$	594,562	$	0
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total		Recorded Investment > 90 Days and Accruing
December 31, 2012
Commercial	$	312	$	59	$	0	$	371	$	231,905	$	232,276	$	0
Commercial real estate:
Construction		0		0		0		0		16,863		16,863		0
Other		1,265		2,326		8,343		11,934		274,469		286,403		0
Residential:
1-4 family		2,758		1,460		5,019		9,237		69,320		78,557		0
Home equities		126		23		0		149		45,032		45,181		0
Consumer		0		0		0		0		4,771		4,771		0
Total	$	4,461	$	3,868	$	13,362	$	21,691	$	642,360	$	664,051	$	0

Summary of Impaired Loans by Loan Class

The following table summarizes impaired loans by loan class as of September 30, 2013, and December 31, 2012:

	As of September 30, 2013
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial real estate:
Other	$	18,092	$	21,795	$	0
Residential:
1-4 family		5,018		7,423		0
Home equities		517		520		0
Total with no related allowance recorded	$	23,627	$	29,738	$	0
With an allowance recorded:
Commercial	$	10,251	$	10,356	$	2,830
Commercial real estate:
Other		1,961		1,967		275
Residential:
1-4 family		8,931		10,043		987
Home equities		692		692		256
Total with an allowance recorded	$	21,835	$	23,058	$	4,348
Subtotal:
Commercial	$	10,251	$	10,356	$	2,830
Commercial real estate	$	20,053	$	23,762	$	275
Residential	$	15,158	$	18,678	$	1,243
Total impaired loans	$	45,462	$	52,796	$	4,348
	As of December 31, 2012
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial	$	109	$	109	$	0
Commercial real estate:
Other		24,479		29,558		0
Residential:
1-4 family		5,809		8,630		0
Total with no related allowance recorded	$	30,397	$	38,297	$	0
With an allowance recorded:
Commercial	$	3,349	$	3,370	$	1,051
Commercial real estate:
Other		4,598		4,598		194
Residential:
1-4 family		8,755		9,603		980
Home equities		561		561		76
Total with an allowance recorded	$	17,263	$	18,132	$	2,301
Subtotal:
Commercial	$	3,458	$	3,479	$	1,051
Commercial real estate	$	29,077	$	34,156	$	194
Residential	$	15,125	$	18,794	$	1,056
Total impaired loans	$	47,660	$	56,429	$	2,301

Nonaccrual Loans, Segregated by Loan Class

Nonaccrual loans, segregated by loan class, were as follows:

(Dollars in thousands)	September 30, 2013		December 31, 2012
Commercial	$	7,501	$	2,935
Commercial real estate:
Other		16,895		24,008
Residential:
1-4 family		10,953		11,630
Home equities		517		0
Total nonaccrual loans	$	35,866	$	38,573

Average Recorded Investment and Interest Income Recognized on Impaired Loans by Loan Class

The following table summarizes average recorded investment and interest income recognized on impaired loans by loan class for the three and nine months ended September 30, 2013 and 2012:

	For the three months ended September 30,
	2013						2012
(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial	$	10,606	$	38	$	1,354	$	1
Commercial real estate:
Construction		0		0		94		0
Other		20,954		45		20,539		113
Residential:
1-4 family		14,092		18		15,366		19
Home equities		1,233		11		610		4
Consumer		0		0		2		0
Total	$	46,885	$	112	$	37,965	$	137
	For the nine months ended September 30,
	2013				2012
(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial	$	6,665	$	58	$	458	$	1
Commercial real estate:
Construction		0		0		101		0
Other		25,413		200		20,693		229
Residential:
1-4 family		14,285		58		16,603		56
Home equities		789		18		721		11
Consumer		0		0		1		0
Total	$	47,152	$	334	$	38,577	$	297

Summary of Period Ending Balances of Newly Restructured Loans and Types of Modifications

The following tables present the period ending balances of newly restructured loans that occurred during the three and nine months ended September 30, 2013 and 2012, respectively:

	For the three months September 30, 2013
(Dollars in thousands)	Maturity		Rate		Rate & Maturity		Payment Deferral		Rate & Payment Deferral		Total
Commercial real estate:
Other	$	0	$	0	$	6,057	$	0	$	0	$	6,057
Residential:
1-4 family		0		73		0		0		274		347
Home equities		0		0		91		0		0		91
Total	$	0	$	73	$	6,148	$	0	$	274	$	6,495
	For the three months September 30, 2012
(Dollars in thousands)	Maturity		Rate		Rate & Maturity		Payment Deferral		Rate & Payment Deferral		Total
Commercial real estate:
Other	$	2,838	$	0	$	1,000	$	2,350	$	0	$	6,188
Residential:
1-4 family		0		384		0		0		256		640
Total	$	2,838	$	384	$	1,000	$	2,350	$	256	$	6,828
	For the nine months September 30, 2013
(Dollars in thousands)	Maturity		Rate		Rate & Maturity		Payment Deferral		Rate & Payment Deferral		Total
Commercial real estate:
Other	$	0	$	0	$	6,057	$	0	$	0	$	6,057
Residential:
1-4 family		0		490		208		0		389		1,087
Home equities		0		0		163		0		0		163
Total	$	0	$	490	$	6,428	$	0	$	389	$	7,307
	For the nine months September 30, 2012
(Dollars in thousands)	Maturity		Rate		Rate & Maturity		Payment Deferral		Rate & Payment Deferral		Total
Commercial	$	55	$	0	$	17	$	0	$	0	$	72
Commercial real estate:
Other		2,838		0		1,000		2,350		0		6,188
Residential:
1-4 family		0		1,228		0		0		371		1,599
Home equities		0		56		146		0		0		202
Total	$	2,893	$	1,284	$	1,163	$	2,350	$	371	$	8,061

Information Regarding Number of Loans Where Contractual Terms have been Restructured

The tables below provide information regarding the number of loans where the contractual terms have been restructured in a manner which grants a concession to a borrower experiencing financial difficulties for the three and nine months ended September 30, 2013, and 2012.

	For the three months ended September 30,
(Dollars in thousands)	2013						2012
Troubled Debt Restructurings	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial real estate:
Other		2	$	6,003	$	6,057		3	$	6,188	$	6,188
Residential:
1-4 family		3		292		280		4		607		606
Home equities		1		91		91		0		0		0
Total		6	$	6,386	$	6,428		7	$	6,795	$	6,794
	For the nine months ended September 30,
(Dollars in thousands)	2013						2012
Troubled Debt Restructurings	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial		0	$	0	$	0		2	$	73	$	73
Commercial real estate:
Other		2		6,002		6,057		3	$	6,188	$	6,188
Residential:
1-4 family		11		985		1,041		12		1,520		1,540
Home equities		2		165		166		3		198		205
Total		15	$	7,152	$	7,264		20	$	7,979	$	8,006

Financing Receivables Modified as Troubled Debt Restructurings within Previous 12 Months for Payment Default

The following tables represent loans modified as TDRs within the previous 12 months for which there was a payment default during the three and nine months ended September 30, 2013 and 2012, respectively:

	For the three months ended September 30,
(Dollars in thousands)	2013				2012
Troubled Debt Restructurings That Subsequently Defaulted	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Residential:
1-4 family		8	$	592		2	$	296
Total		8	$	592		2	$	296
	For the nine months ended September 30,
(Dollars in thousands)	2013				2012
Troubled Debt Restructurings That Subsequently Defaulted	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Commercial		1	$	447		0	$	0
Commercial real estate:
Other		1		734		0		0
Residential:
1-4 family		8		592		4		690
Total		10	$	1,773		4	$	690

Performing and Nonperforming Loans, Segregated by Class of Loans

Performing and nonperforming loans, segregated by class of loans, are as follows:

	September 30, 2013
(Dollars in thousands)	Performing		Nonperforming		Total
Commercial	$	161,692	$	7,501	$	169,193
Commercial real estate:
Construction		15,625		0		15,625
Other		271,736		16,895		288,631
Residential:
1-4 family		62,151		10,953		73,104
Home equities		43,472		517		43,989
Consumer		4,020		0		4,020
Total	$	558,696	$	35,866	$	594,562
	December 31, 2012
(Dollars in thousands)	Performing		Nonperforming		Total
Commercial	$	229,341	$	2,935	$	232,276
Commercial real estate:
Construction		16,863		0		16,863
Other		262,395		24,008		286,403
Residential:
1-4 family		66,927		11,630		78,557
Home equities		45,181		0		45,181
Consumer		4,771		0		4,771
Total	$	625,478	$	38,573	$	664,051

Internal Risk Rating by Loan Class

The following table summarizes internal risk rating by loan class as of September 30, 2013, and December 31, 2012:

	September 30, 2013
(Dollars in thousands)	Pass		Watch		Special Mention		Substandard		Doubtful		Total
Commercial	$	132,503	$	20,581	$	5,546	$	10,563	$	0	$	169,193
Commercial real estate:
Construction		15,464		161		0		0		0		15,625
Other		246,279		20,389		2,106		19,857		0		288,631
Residential:
1-4 family		57,986		1,169		0		13,949		0		73,104
Home equities		39,824		2,185		25		1,955		0		43,989
Consumer		3,583		269		132		36		0		4,020
Total	$	495,639	$	44,754	$	7,809	$	46,360	$	0	$	594,562
	December 31, 2012
(Dollars in thousands)	Pass		Watch		Special Mention		Substandard		Doubtful		Total
Commercial	$	203,280	$	16,330	$	6,850	$	5,816	$	0	$	232,276
Commercial real estate:
Construction		16,790		73		0		0		0		16,863
Other		225,772		30,421		897		29,313		0		286,403
Residential:
1-4 family		62,356		1,180		457		14,564		0		78,557
Home equities		40,935		2,666		0		1,580		0		45,181
Consumer		4,376		354		0		41		0		4,771
Total	$	553,509	$	51,024	$	8,204	$	51,314	$	0	$	664,051

Allowance for Credit Losses and Recorded Investment in Financing Receivables

The following tables below summarize the Allowance for Credit Losses and Recorded Investment in Financing Receivables as of September 30, 2013, and December 31, 2012:

	As of September 30, 2013
(Dollars in thousands)	Commercial			Commercial Real Estate			Consumer			Residential			Unallocated		Total
Allowance for credit losses:
Beginning balance	$	4,168		$	2,783		$	28		$	3,335		$	789	$	11,103
Charge offs		(632	)		(230	)		(25	)		(1,067	)		0		(1,954	)
Recoveries		19			1,216			1			407			00		1,643
Provision		2,121			(482	)		38			(156	)		1,229		2,750
Ending balance	$	5,676		$	3,287		$	42		$	2,519		$	2,018	$	13,542
Ending balance: individually evaluated for impairment	$	2,830		$	275		$	0		$	1,243		$	0	$	4,348
Ending balance: collectively evaluated for impairment	$	2,846		$	3,012		$	42		$	1,276		$	2,018	$	9,194
Financing receivables
Ending balance	$	169,193		$	304,256		$	4,020		$	117,093		$	0	$	594,562
Ending balance individually evaluated for impairment	$	10,251		$	20,053		$	0		$	15,158		$	0	$	45,462
Ending balance collectively evaluated for impairment	$	158,942		$	284,203		$	4,020		$	101,935		$	0	$	549,100
	As of December 31, 2012
(Dollars in thousands)	Commercial			Commercial Real Estate			Consumer			Residential			Unallocated		Total
Allowance for credit losses:
Beginning balance	$	2,773		$	3,796		$	33		$	3,690		$	330	$	10,622
Charge offs		(604	)		(6,541	)		(5	)		(2,712	)		0		(9,862	)
Recoveries		118			13			2			810			0		943
Provision		1,881			5,515			(2	)		1,547			459		9,400
Ending balance	$	4,168		$	2,783		$	28		$	3,335		$	789	$	11,103
Ending balance: individually evaluated for impairment	$	1,051		$	194		$	0		$	1,056		$	0	$	2,301
Ending balance: collectively evaluated for impairment	$	3,117		$	2,589		$	28		$	2,279		$	789	$	8,802
Financing receivables
Ending balance	$	232,276		$	303,266		$	4,771		$	123,738		$	0	$	664,051
Ending balance individually evaluated for impairment	$	3,458		$	29,077		$	0		$	15,125		$	0	$	47,660
Ending balance collectively evaluated for impairment	$	228,818		$	274,189		$	4,771		$	108,613		$	0	$	616,391