Loans and Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2012

Receivables [Abstract]

Summary of Activity in the Loan Balances and the Allowance for Loan Losses by Segment

Activity in the allowance for loan losses by segment for 2012, 2011 and 2010 is summarized as follows:

Year Ended December 31, 2012
	Commercial Real Estate			Commercial			Residential Real Estate			Home Equity Loans			Indirect			Consumer			Total
	(Dollars in thousands)
Allowance for loan losses:
Balance, beginning of year	$	10,714		$	1,409		$	1,331		$	2,289		$	891		$	429		$	17,063
Losses charged off	(3,199		)	(213		)	(1,430		)	(1,372		)	(963		)	(401		)	(7,578		)
Recoveries	388			45			96			35			288			58			910
Provision charged to expense	3,483			(406		)	1,562			1,405			1,014			184			7,242
Balance, end of year	$	11,386		$	835		$	1,559		$	2,357		$	1,230		$	270		$	17,637
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	1,449		$	209		$	15		$	—		$	—		$	—		$	1,673
Collectively evaluated for impairment	9,937			626			1,544			2,357			1,230			270			15,964
Total ending allowance balance	$	11,386		$	835		$	1,559		$	2,357		$	1,230		$	270		$	17,637
Loans:
Individually evaluated for impairment	$	23,321		$	597		$	1,790		$	398		$	—		$	61		$	26,167
Collectively evaluated for impairment	390,684			68,108			63,193			122,432			199,924			12,040			856,381
Total ending loans balance	$	414,005		$	68,705		$	64,983		$	122,830		$	199,924		$	12,101		$	882,548

Year Ended December 31, 2011
	Commercial Real Estate			Commercial			Residential Real Estate			Home Equity Loans			Indirect			Consumer			Total
	(Dollars in thousands)
Allowance for loan losses:
Balance, beginning of year	$	11,127		$	1,317		$	805		$	1,512		$	904		$	471		$	16,136
Losses charged off	(5,195		)	(262		)	(1,664		)	(1,895		)	(695		)	(398		)	(10,109		)
Recoveries	280			42			22			62			209			68			683
Provision charged to expense	4,502			312			2,168			2,610			473			288			10,353
Balance, end of year	$	10,714		$	1,409		$	1,331		$	2,289		$	891		$	429		$	17,063
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	3,747		$	148		$	37		$	—		$	—		$	—		$	3,932
Collectively evaluated for impairment	6,967			1,261			1,294			2,289			891			429			13,131
Total ending allowance balance	$	10,714		$	1,409		$	1,331		$	2,289		$	891		$	429		$	17,063
Loans:
Individually evaluated for impairment	$	31,746		$	705		$	1,141		$	—		$	—		$	—		$	33,592
Collectively evaluated for impairment	350,106			75,865			63,383			126,958			180,089			13,095			809,496
Total ending loans balance	$	381,852		$	76,570		$	64,524		$	126,958		$	180,089		$	13,095		$	843,088
Year Ended December 31, 2010
	Commercial Real Estate			Commercial			Residential Real Estate			Home Equity Loans			Indirect			Consumer			Total
	(Dollars in thousands)
Allowance for loan losses:
Balance, beginning of year	$	14,390		$	862		$	528		$	1,591		$	799		$	622		$	18,792
Losses charged off	(8,508		)	(1,507		)	(1,491		)	(1,091		)	(455		)	(573		)	(13,625		)
Recoveries	87			157			30			39			293			138			744
Provision charged to expense	5,158			1,805			1,738			973			267			284			10,225
Balance, end of year	$	11,127		$	1,317		$	805		$	1,512		$	904		$	471		$	16,136
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	6,865		$	206		$	46		$	—		$	—		$	—		$	7,117
Collectively evaluated for impairment	4,262			1,111			759			1,512			904			471			9,019
Total ending allowance balance	$	11,127		$	1,317		$	805		$	1,512		$	904		$	471		$	16,136
Loans:
Individually evaluated for impairment	$	38,853		$	1,333		$	4,482		$	—		$	—		$	—		$	44,668
Collectively evaluated for impairment	336,950			64,329			70,203			132,536			150,031			13,862			767,911
Total ending loans balance	$	375,803		$	65,662		$	74,685		$	132,536		$	150,031		$	13,862		$	812,579

Age Analysis of Past Due Loans

nd December 31, 2011 is as follows:

Age Analysis of Past Due Loans as of December 31, 2012

(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days and Accruing
Commercial real estate	$	3,681	$	1,004	$	12,398	$	17,083	$	396,922	$	414,005	$	—
Commercial	—		—		376		376		68,329		68,705		—
Residential real estate	394		1,094		2,827		4,315		60,668		64,983		184
Home equity loans	630		494		1,510		2,634		120,196		122,830		—
Indirect	645		227		69		941		198,983		199,924
Consumer	26		40		123		189		11,912		12,101		—
Total	$	5,376	$	2,859	$	17,303	$	25,538	$	857,010	$	882,548	$	184

Age Analysis of Past Due Loans as of December 31, 2011

(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days and Accruing
Commercial real estate	$	290	$	804	$	19,023	$	20,117	$	361,735	$	381,852	$	—
Commercial	54		249		805		1,108		75,462		76,570		—
Residential real estate	545		1,172		3,554		5,271		59,253		64,524		—
Home equity loans	1,942		181		1,666		3,789		123,169		126,958		—
Indirect	664		71		124		859		179,230		180,089
Consumer	131		12		28		171		12,924		13,095		—
Total	$	3,626	$	2,489	$	25,200	$	31,315	$	811,773	$	843,088	$	—

Impaired Loans

or the Period Ended December 31, 2012 , 2011 and 2010 are as follows:

					Twelve Months Ended December 31, 2012
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Balance
	(Dollars in thousands)
With no related allowance recorded:
Commercial real estate	$	15,378	$	20,086	$	—	$	9,945
Commercial	138		138		—		207
Residential real estate	1,610		1,686		—		1,187
Home equity loans	398		398		—		100
Indirect	—		—		—		—
Consumer	61		61		—		15
With allowance recorded:
Commercial real estate	7,942		9,876		1,449		16,571
Commercial	459		459		209		251
Residential real estate	181		1,452		15		106
Home equity loans	—		—		—		—
Indirect	—		—		—		—
Consumer	—		—		—		—
Total	$	26,167	$	34,156	$	1,673	$	28,382
					Twelve Months Ended December 31, 2011
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Balance
	(Dollars in thousands)
With no related allowance recorded:
Commercial real estate	$	12,585	$	20,138	$	—	$	14,805
Commercial	386		386		—		419
Residential real estate	1,069		1,897		—		1,470
Home equity loans	—		—		—		—
Indirect	—		—		—		—
Consumer	—		—		—		—
With allowance recorded:
Commercial real estate	19,161		19,823		3,747		18,130
Commercial	319		794		148		570
Residential real estate	72		72		37		72
Home equity loans	—		—		—		—
Indirect	—		—		—		—
Consumer	—		—		—		—
Total	$	33,592	$	43,110	$	3,932	$	35,466

					Twelve Months Ended December 31, 2010
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Balance
	(Dollars in thousands)
With no related allowance recorded:
Commercial real estate	$	6,393	$	10,367	$	—	$	8,643
Commercial	549		549		—		600
Residential real estate	3,102		3,432		—		3,211
Home equity loans	—		—		—		—
Indirect	—		—		—		—
Consumer	—		—		—		—
With allowance recorded:
Commercial real estate	32,460		35,483		6,865		29,946
Commercial	784		1,432		206		1,143
Residential real estate	1,380		1,416		46		1,420
Home equity loans	—		—		—		—
Indirect	—		—		—		—
Consumer	—		—		—		—
Total	$	44,668	$	52,679	$	7,117	$	44,963

*impaired loans shown in the table above included loans that were classified as troubled debt restructurings ("TDRs'). The restructuring of a loan is considered a TDR if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession.

Loans on Nonaccrual Status

Nonaccrual loan balances at December 31, 2012 and December 31, 2011 are as follows:

Loans On Non-Accrual Status	December 31, 2012		December 31, 2011
	(Dollars in thousands)
Commercial real estate	$	16,349	$	21,512
Commercial	472		1,072
Residential real estate	5,622		6,551
Home equity loans	4,293		4,365
Indirect	711		711
Consumer	349		260
Total Nonaccrual Loans	$	27,796	$	34,471

Troubled Debt Restructuring Loan Information

The following table summarizes the loans that were modified as a TDR during the period ended December 31, 2012 and 2011.

At December 31, 2012
	Number of Contracts	Pre-Modification Outstanding Recorded Investment	Post-Modification Outstanding Recorded Investment
Commercial real estate	7	$5,595	$5,114
Residential real estate	11	$1,167	$1,167
Home equity loans	8	$398	$398
Consumer Loans	1	$61	$61

At December 31, 2011
	Number of Contracts	Pre-Modification Outstanding Recorded Investment	Post-Modification Outstanding Recorded Investment
Commercial real estate	4	$2,259	$2,259
Commercial and industrial	1	$840	$840

Summary of Recorded Investment Based on Delinquency Status

Commercial Credit Exposure	Commercial Real Estate		Commercial		Residential Real Estate*		Home Equity Loans		Indirect		Consumer		Total
	December 31, 2011
	(Dollars in thousands)
Loans graded by internal credit risk grade:
Grade 1 — Minimal	$	—	$	3,157	$	—	$	—	$	—	$	—	$	3,157
Grade 2 — Modest	—		—		—		—		—		—		—
Grade 3 — Better than average	1,602		19		—		—		—		—		1,621
Grade 4 — Average	44,527		5,322		237		—		—		—		50,086
Grade 5 — Acceptable	278,458		63,880		4,835		—		—		—		347,173
Total Pass Credits	324,587		72,378		5,072		—		—		—		402,037
Grade 6 — Special mention	16,390		2,947		157		—		—		—		19,494
Grade 7 — Substandard	40,875		1,245		1,830		—		—		—		43,950
Grade 8 — Doubtful	—		—		—		—		—		—		—
Grade 9 — Loss	—		—		—		—		—		—		—
Total loans internally credit risk graded	381,852		76,570		7,059		—		—		—		465,481
Loans not monitored by internal risk grade:
Current loans not internally risk graded	—		—		53,276		123,169		179,230		12,924		368,599
30-59 days past due loans not internally risk graded	—		—		545		1,942		664		131		3,282
60-89 days past due loans not internally risk graded	—		—		1,172		181		71		12		1,436
90+ days past due loans not internally risk graded	—		—		2,472		1,666		124		28		4,290
Total loans not internally credit risk graded	—		—		57,465		126,958		180,089		13,095		377,607
Total loans internally and not internally credit risk graded	$	381,852	$	76,570	$	64,524	$	126,958	$	180,089	$	13,095	$	843,088

* Residential loans with an internal commercial credit risk grade include loans that are secured by non owner occupied 1-4 family residential properties and conventional 1-4 family residential properties.

The following table presents the recorded investment of commercial real estate, commercial and residential real estate loans by internal credit risk grade and the recorded investment of residential real estate, home equity, indirect and consumer loans based on delinquency status as of December 31, 2012 and December 31, 2011:

Commercial Credit Exposure	Commercial Real Estate		Commercial		Residential Real Estate*		Home Equity Loans		Indirect		Consumer		Total
	December 31, 2012
	(Dollars in thousands)
Loans graded by internal credit risk grade:
Grade 1 — Minimal	$	—	$	114	$	—	$	—	$	—	$	—	$	114
Grade 2 — Modest	—		—		—		—		—		—		—
Grade 3 — Better than average	1,100		6		—		—		—		—		1,106
Grade 4 — Average	30,604		4,547		626		—		—		—		35,777
Grade 5 — Acceptable	342,067		60,023		5,584		—		—		—		407,674
Total Pass Credits	373,771		64,690		6,210		—		—		—		444,671
Grade 6 — Special mention	12,201		3,394		42		—		—		—		15,637
Grade 7 — Substandard	27,268		621		1,468		—		—		—		29,357
Grade 8 — Doubtful	765		—		—		—		—		—		765
Grade 9 — Loss	—		—		—		—		—		—		—
Total loans internally credit risk graded	414,005		68,705		7,720		—		—		—		490,430
Loans not monitored by internal risk grade:
Current loans not internally risk graded	—		—		54,416		120,196		198,983		11,912		385,507
30-59 days past due loans not internally risk graded	—		—		394		630		645		26		1,695
60-89 days past due loans not internally risk graded	—		—		1,094		494		227		40		1,855
90+ days past due loans not internally risk graded	—		—		1,359		1,510		69		123		3,061
Total loans not internally credit risk graded	—		—		57,263		122,830		199,924		12,101		392,118
Total loans internally and not internally credit risk graded	$	414,005	$	68,705	$	64,983	$	122,830	$	199,924	$	12,101	$	882,548

* Residential loans with an internal commercial credit risk grade include loans that are secured by non owner occupied 1-4 family residential properties and conventional 1-4 family residential properties.