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Loans (Tables)

12 Months Ended

Dec. 31, 2013

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


(Dollars in thousands)	For the years ended December 31,
	2013			2012
Commercial	$	170,429		$	232,276
Real estate – construction loans		18,545			16,863
Real estate – commercial (investor)		205,384			211,318
Real estate – commercial (owner occupied)		83,976			75,085
Real estate – ITIN loans		56,101			60,105
Real estate – mortgage		14,590			18,452
Real estate – equity lines		45,462			45,181
Consumer		3,472			4,422
Other		36			349

Gross portfolio loans	$	597,995		$	664,051
Less:
Deferred loan fees, net		(303	)		(312	)
Allowance for loan losses		14,172			11,103

Net portfolio loans	$	584,126		$	653,260

Age Analysis of Past Due Loans

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


(Dollars in thousand)	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, 2013
Commercial	$	0	$	0	$	0	$	0	$	170,429	$	170,429	$	0
Commercial real estate:
Construction		0		0		0		0		18,545		18,545		0
Other		0		0		0		0		289,360		289,360		0
Residential:
1-4 family		3,125		436		3,167		6,728		63,963		70,691		0
Home equities		131		25		0		156		45,306		45,462		0
Consumer		0		0		0		0		3,508		3,508		0

Total	$	3,256	$	461	$	3,167	$	6,884	$	591,111	$	597,995	$	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 December 31, 2013, and December 31, 2012:


(Dollars in thousands)	As of December 31, 2013
	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial real estate:
Other	$	15,736	$	18,184	$	0
Residential:
1-4 family		3,714		6,091		0
Home equities		539		545		0

Total with no related allowance recorded	$	19,989	$	24,820	$	0
With an allowance recorded:
Commercial	$	6,590	$	6,808	$	2,988
Commercial real estate:
Other		6,011		6,020		814
Residential:
1-4 family		8,805		9,804		963
Home equities		746		746		229

Total with an allowance recorded	$	22,152	$	23,378	$	4,994
Subtotal:
Commercial	$	6,590	$	6,808	$	2,988
Commercial real estate	$	21,747	$	24,204	$	814
Residential	$	13,804	$	17,186	$	1,192

Total impaired loans	$	42,141	$	48,198	$	4,994


(Dollars in thousands)	As of December 31, 2012
	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)	For the years ended December 31,
	2013		2012
Commercial	$	6,527	$	2,935
Commercial real estate:
Other		14,539		24,008
Residential:
1-4 family		8,217		11,630
Home equities		513		0

Total	$	29,796	$	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 years ended December 31, 2013, 2012 and 2011:


(Dollars in thousands)	2013				2012				2011
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial	$	7,239	$	82	$	1,211	$	7	$	1,184	$	1
Commercial real estate:
Construction		0		0		82		0		1,087		3
Other		24,186		291		22,486		385		17,181		347
Residential:
1-4 family		13,971		80		16,036		75		17,778		163
Home equities		875		26		678		15		1,262		67

Total	$	46,271	$	479	$	40,493	$	482	$	38,492	$	581

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 and the types of modifications that occurred during the years ended December 31, 2013, 2012 and 2011:


(Dollars in thousands)	For the year ended December 31, 2013
	Rate		Rate & Maturity		Rate & Payment Deferral		Maturity		Payment Deferral		Total
Commercial	$	0	$	0	$	0	$	6,093	$	0	$	6,093
Commercial real estate:
Other		0		6,029		0		918		2,129		9,076
Residential:
1-4 family		550		205		539		0		0		1,294
Home equities		0		161		0		0		0		161

Total	$	550	$	6,395	$	539	$	7,011	$	2,129	$	16,624


(Dollars in thousands)	For the year ended December 31, 2012
	Rate		Rate & Maturity		Rate & Payment Deferral		Maturity		Payment Deferral		Total
Commercial	$	0	$	17	$	0	$	104	$	453	$	574
Commercial real estate:
Other		0		740		0		2,838		1,131		4,709
Residential:
1-4 family		1,622		0		367		0		0		1,989
Home equities		55		209		0		0		0		264

Total	$	1,677	$	966	$	367	$	2,942	$	1,584	$	7,536


(Dollars in thousands)	For the year ended December 31, 2011
	Rate		Rate & Maturity		Payment Deferral		Total
Commercial	$	5,329	$	0	$	49	$	5,378
Commercial real estate:
Other		6,206		0		2,088		8,294
Residential:
1-4 family		4,223		43		0		4,266
Home equities		297		0		0		297

Total	$	16,055	$	43	$	2,137	$	18,235

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 years ended December 31, 2013, 2012, and 2011.


(Dollars in thousands)	2013
Troubled Debt Restructurings	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment

Commercial		3	$	6,837	$	6,638
Commercial real estate:
Other		4		9,050		8,604
Residential:
1-4 family		15		1,286		1,360
Home equities		2		165		166

Total		24	$	17,338	$	16,768


(Dollars in thousands)	2012
Troubled Debt Restructurings	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment

Commercial		4	$	579	$	579
Commercial real estate:
Other		4		4,968		4,968
Residential:
1-4 family		18		1,974		2,020
Home equities		4		261		268

Total		30	$	7,782	$	7,835


(Dollars in thousands)	2011
Troubled Debt Restructurings	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial		2	$	5,390	$	5,390
Commercial real estate:
Other		5		8,309		8,309
Residential:
1-4 family		44		4,792		4,799
Home equities		5		299		303

Total		56	$	18,790	$	18,801

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

The following table represents loans modified as TDRs within the previous 12 months for which there was a payment default during the twelve months ended December 31, 2013, 2012 and 2011, respectively:


(Dollars in thousands)	2013				2012				2011
Troubled Debt Restructurings that Subsequently Defaulted	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Residential:
1-4 family		9		591		6		677		5	$	438
Home equities										1		39
Commercial real estate:
Other						1	$	1,000

Total		9	$	591		7	$	1,677		6	$	477

Performing and Nonperforming Loans, Segregated by Class of Loans

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


(Dollars in thousands)	December 31, 2013
	Performing		Nonperforming		Total
Commercial	$	163,902	$	6,527	$	170,429
Commercial real estate:
Construction		18,545		0		18,545
Other		274,821		14,539		289,360
Residential:
1-4 family		62,474		8,217		70,691
Home equities		44,949		513		45,462
Consumer		3,508		0		3,508

Total	$	568,199	$	29,796	$	597,995


(Dollars in thousands)	December 31, 2012
	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 December 31, 2013, and December 31, 2012:


(Dollars in thousands)	December 31, 2013
	Pass		Watch		Special Mention		Substandard		Doubtful		Total
Commercial	$	131,042	$	24,274	$	7,177	$	7,936	$	0	$	170,429
Commercial real estate:
Construction		18,048		497		0		0		0		18,545
Other		247,656		18,343		2,309		21,052		0		289,360
Residential:
1-4 family		56,832		1,340		0		12,519		0		70,691
Home equities		41,147		2,311		25		1,979		0		45,462
Consumer		3,307		38		130		33		0		3,508

Total	$	498,032	$	46,803	$	9,641	$	43,519	$	0	$	597,995


(Dollars in thousands)	December 31, 2012
	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 December 31, 2013, and December 31, 2012:


(Dollars in thousands)	As of December 31, 2013
	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		(882	)		(230	)		(25	)		(1,633	)		0		(2,770	)
Recoveries		58			2,483			1			547			0		3,089
Provision		3,713			(2,252	)		31			244			1,014		2,750

Ending balance	$	7,057		$	2,784		$	35		$	2,493		$	1,803	$	14,172

Ending balance: individually evaluated for impairment	$	2,988		$	814		$	0		$	1,192		$	0	$	4,994
Ending balance: collectively evaluated for impairment	$	4,069		$	1,970		$	35		$	1,301		$	1,803	$	9,178
Financing receivables
Ending balance	$	170,429		$	307,905		$	3,508		$	116,153		$	0	$	597,995
Ending balance individually evaluated for impairment	$	6,590		$	21,747		$	0		$	13,804		$	0	$	42,141
Ending balance collectively evaluated for impairment	$	163,839		$	286,158		$	3,508		$	102,349		$	0	$	555,854


(Dollars in thousands)	As of December 31, 2012
	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