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Loans and Allowance for Loan Losses (Tables)
 3 Months Ended
Mar. 31, 2015
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 portfolio segment for the three months ended March 31, 2015, March 31, 2014 and the year ended December 31, 2014 are summarized as follows:

Three Months Ended March 31, 2015
 
Commercial
Real Estate
 
Commercial
 
Residential
Real Estate
 
Home
Equity Loans
 
Indirect
 
Consumer
 
Total
 
(Dollars in thousands)
Allowance for loan losses:

Balance, beginning of period
$
8,446

 
$
874

 
$
2,127

 
$
3,130

 
$
2,459

 
$
380

 
$
17,416

Losses charged off
(255
)
 
—

 
(80
)
 
(124
)
 
(168
)
 
(66
)
 
(693
)
Recoveries
10

 
1

 
1

 
6

 
43

 
13

 
74

Provision charged to expense
(924
)
 
235

 
(39
)
 
217

 
429

 
82

 
—

Balance, end of period
$
7,277

 
$
1,110

 
$
2,009

 
$
3,229

 
$
2,763

 
$
409

 
$
16,797

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending allowance balance attributable to loans:

 

 

 

 

 

 

Individually evaluated for impairment
$
186

 
$
116

 
$
212

 
$
—

 
$
—

 
$
—

 
$
514

Collectively evaluated for impairment
7,091

 
994

 
1,797

 
3,229

 
2,763

 
409

 
16,283

Total ending allowance balance
$
7,277

 
$
1,110

 
$
2,009

 
$
3,229

 
$
2,763

 
$
409

 
$
16,797

Loans:

 

 

 

 

 

 

Individually evaluated for impairment
$
12,368

 
$
247

 
$
1,694

 
$
628

 
$
97

 
$
62

 
$
15,096

Collectively evaluated for impairment
407,012

 
75,747

 
69,693

 
126,382

 
217,663

 
12,810

 
909,307

Total ending loans balance
$
419,380

 
$
75,994

 
$
71,387

 
$
127,010

 
$
217,760

 
$
12,872

 
$
924,403


Three Months Ended March 31, 2014
 
Commercial
Real Estate
 
Commercial
 
Residential
Real Estate
 
Home
Equity
Loans
 
Indirect
 
Consumer
 
Total
Allowance for loan losses:
 
Balance, beginning of period
$
10,122

 
$
497

 
$
1,411

 
$
3,484

 
$
1,593

 
$
398

 
$
17,505

Losses charged off
(546
)
 
—

 
(77
)
 
(222
)
 
(70
)
 
(83
)
 
(998
)
Recoveries
6

 
1

 
2

 
11

 
58

 
12

 
90

Provision charged to expense
662

 
(34
)
 
147

 
205

 
(68
)
 
(12
)
 
900

Balance, end of period
$
10,244

 
$
464

 
$
1,483

 
$
3,478

 
$
1,513

 
$
315

 
$
17,497

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending allowance balance attributable to loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
838

 
$
73

 
$
6

 
$
—

 
$
—

 
$
—

 
$
917

Collectively evaluated for impairment
9,406

 
$
391

 
$
1,477

 
$
3,478

 
$
1,513

 
$
315

 
16,580

Total ending allowance balance
$
10,244

 
$
464

 
$
1,483

 
$
3,478

 
$
1,513

 
$
315

 
$
17,497

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
16,175

 
$
460

 
$
1,254

 
$
980

 
$
190

 
$
65

 
$
19,124

Collectively evaluated for impairment
392,292

 
82,837

 
67,417

 
121,844

 
209,504

 
17,171

 
891,065

Total ending loans balance
$
408,467

 
$
83,297

 
$
68,671

 
$
122,824

 
$
209,694

 
$
17,236

 
$
910,189



Year Ended December 31, 2014
 
Commercial
Real Estate
 
Commercial
 
Residential
Real Estate
 
Home
Equity
Loans
 
Indirect
 
Consumer
 
Total
 
(Dollars in thousands)
Allowance for loan losses:
 
Balance, beginning of year
$
10,122

 
$
497

 
$
1,411

 
$
3,484

 
$
1,593

 
$
398

 
$
17,505

Losses charged off
(1,407
)
 
(35
)
 
(340
)
 
(1,382
)
 
(399
)
 
(261
)
 
(3,824
)
Recoveries
261

 
33

 
7

 
76

 
214

 
31

 
622

Provision charged to expense
(530
)
 
379

 
1,049

 
952

 
1,051

 
212

 
3,113

Balance, end of year
$
8,446

 
$
874

 
$
2,127

 
$
3,130

 
$
2,459

 
$
380

 
$
17,416

Ending allowance balance attributable to loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
742

 
$
51

 
$
223

 
$
—

 
$
—

 
$
—

 
$
1,016

Collectively evaluated for impairment
7,704

 
823

 
1,904

 
3,130

 
2,459

 
380

 
16,400

Total ending allowance balance
$
8,446

 
$
874

 
$
2,127

 
$
3,130

 
$
2,459

 
$
380

 
$
17,416

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
13,828

 
$
201

 
$
1,688

 
$
711

 
$
127

 
$
63

 
$
16,618

Collectively evaluated for impairment
411,564

 
77,324

 
69,808

 
125,218

 
216,072

 
13,421

 
913,407

Total ending loans balance
$
425,392

 
$
77,525

 
$
71,496

 
$
125,929

 
$
216,199

 
$
13,484

 
$
930,025

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Age Analysis of Past Due Loans
Age Analysis of Past Due Loans as of March 31, 2015
(Dollars in thousands)
30-59 Days
Past Due
 
60-89 Days
Past Due
 

90 Days and Greater
 
Total Past Due
 
Current
 
Total Loans
 
Recorded
Investment
>
90 Days
and
Accruing
Commercial real estate
$
923

 
$
1,305

 
$
4,498

 
$
6,726

 
$
412,654

 
$
419,380

 
$
—

Commercial
594

 
—

 
90

 
684

 
75,310

 
75,994

 
—

Residential real estate
368

 
16

 
1,453

 
1,837

 
69,550

 
71,387

 
—

Home equity loans
497

 
409

 
1,422

 
2,328

 
124,682

 
127,010

 
—

Indirect
420

 
149

 
128

 
697

 
217,063

 
217,760

 

Consumer
30

 
140

 
89

 
259

 
12,613

 
12,872

 
—

Total
$
2,832

 
$
2,019

 
$
7,680

 
$
12,531

 
$
911,872

 
$
924,403

 
$
—









Age Analysis of Past Due Loans as of December 31, 2014
(Dollars in thousands)
30-59 Days
Past Due
 
60-89 Days
Past Due
 

90 Days and Greater
 
Total Past Due
 
Current
 
Total Loans
 
Recorded
Investment
>
90 Days
and
Accruing
Commercial real estate
$
3,026

 
$
5

 
$
5,857

 
$
8,888

 
$
416,504

 
$
425,392

 
$
—

Commercial
10

 
94

 
97

 
201

 
77,324

 
77,525

 
—

Residential real estate
431

 
37

 
1,481

 
1,949

 
69,547

 
71,496

 
—

Home equity loans
530

 
315

 
1,242

 
2,087

 
123,842

 
125,929

 
—

Indirect
287

 
92

 
130

 
509

 
215,690

 
216,199

 
—

Consumer
235

 
22

 
248

 
505

 
12,979

 
13,484

 
—

Total
$
4,519

 
$
565

 
$
9,055

 
$
14,139

 
$
915,886

 
$
930,025

 
$
—
Impaired Loans
Impaired loans for the Period Ended March 31, 2015, December 31, 2014 and March 31, 2014 are as follows:
 
 
At March 31, 2015
 
Three Months
Ended
March 31, 2015
 
Recorded
Investment
 
Unpaid Principal
Balance
 
Related
Allowance
 
Average Recorded
Balance
 
(Dollars in thousands)
With no related allowance recorded:
 
 
 
 
 
 
 
Commercial real estate
$
11,591

 
$
16,521

 
$
—

 
$
11,585

Commercial
55

 
226

 
—

 
65

Residential real estate
1,335

 
1,477

 
—

 
1,325

Home equity loans
628

 
1,376

 
—

 
670

Indirect
97

 
192

 
—

 
112

Consumer
62

 
62

 
—

 
63

With allowance recorded:

 

 

 
 
Commercial real estate
777

 
1,901

 
186

 
1,513

Commercial
192

 
192

 
116

 
159

Residential real estate
359

 
359

 
212

 
366

Home equity loans
—

 
—

 
—

 
—

Indirect
—

 
—

 
—

 
—

Consumer
—

 
—

 
—

 
—

Total
$
15,096

 
$
22,306

 
$
514

 
$
15,858


Note: The differences between the recorded investment and unpaid principal balance amounts represents partial charge offs.
 
At December 31, 2014
 
Recorded
Investment
 
Unpaid Principal
Balance
 
Related
Allowance
 
Average Recorded
Balance
 
(Dollars in thousands)
With no related allowance recorded:
 
 
 
 
 
 
 
Commercial real estate
$
11,578

 
$
16,320

 
$
—

 
$
12,650

Commercial
74

 
391

 
—

 
445

Residential real estate
1,316

 
1,457

 
—

 
1,241

Home equity loans
711

 
1,408

 
—

 
874

Indirect
127

 
235

 
—

 
158

Consumer
63

 
63

 
—

 
64

With allowance recorded:
 
 
 
 
 
 
 
Commercial real estate
2,250

 
2,256

 
742

 
2,903

Commercial
127

 
127

 
51

 
169

Residential real estate
372

 
372

 
223

 
148

Home equity loans
—

 
—

 
—

 
—

Indirect
—

 
—

 
—

 
—

Consumer
—

 
—

 
—

 
—

Total
$
16,618

 
$
22,629

 
$
1,016

 
$
18,652

Note: The differences between the recorded investment and unpaid principal balance amounts represents partial charge offs.
 
At March 31, 2014
 
Three Months
Ended
March 31, 2014
 
Recorded
Investment
 
Unpaid Principal
Balance
 
Related
Allowance
 
Average Recorded
Balance
 
(Dollars in thousands)
With no related allowance recorded:
 
 
 
 
 
 
 
Commercial real estate
$
12,512

 
$
16,899

 
$
—

 
$
14,021

Commercial
202

 
255

 
—

 
208

Residential real estate
1,233

 
1,371

 
—

 
1,482

Home equity loans
980

 
1,563

 
—

 
1,045

Indirect
190

 
263

 
—

 
192

Consumer
65

 
97

 
—

 
113

With allowance recorded:
 
 
 
 
 
 
 
Commercial real estate
3,663

 
5,553

 
838

 
2,988

Commercial
258

 
258

 
73

 
258

Residential real estate
21

 
82

 
6

 
11

Home equity loans
—

 
—

 
—

 
—

Indirect
—

 
—

 
—

 
—

Consumer
—

 
—

 
—

 
—

Total
$
19,124

 
$
26,341

 
$
917

 
$
20,318

*Impaired loans shown in the tables 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.
Troubled Debt Restructuring Loan Information
The following table summarizes the number of loans modified as a TDR during the three months of March 31, 2015. In the first quarter of 2014 there were no loans that were modified with a TDR designation.
 
Three Months Ended As of March 31, 2015
 
(Dollars in thousands)
 
Number of Contracts
 
Recorded Investment
 
Unpaid Principal
Commercial real estate
2
 
$628
 
$628
Total
2
 
$628
 
$628

Note: The differences between the recorded investment and unpaid principal balance amounts represents partial charge offs.
Loans on Nonaccrual Status
Nonaccrual loan balances at March 31, 2015 and December 31, 2014 are as follows:
 
Loans On Nonaccrual Status
March 31,
2015
 
December 31,
2014
 
(Dollars in thousands)
Commercial real estate
$
7,796

 
$
7,884

Commercial
247

 
189

Residential real estate
3,633

 
3,803

Home equity loans
4,571

 
3,900

Indirect
557

 
475

Consumer
184

 
327

Total Nonaccrual Loans
$
16,988

 
$
16,578
Summary of Recorded Investment Based on Delinquency Status
The following tables present 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 March 31, 2015 and December 31, 2014:
Commercial
Credit Exposure
Commercial
Real Estate
 
Commercial
 
Residential
Real
Estate*
 
Home
Equity
Loans
 
Indirect
 
Consumer
 
Total
March 31, 2015
 
(Dollars in thousands)
Loans graded by internal credit risk grade:
 
 
 
 
 
 
 
 
 
 
 
 
 
Grade 1 — Minimal
$
—

 
$
13

 
$
—

 
$
—

 
$
—

 
$
—

 
$
13

Grade 2 — Modest
600

 
4,817

 
—

 
—

 
—

 
—

 
5,417

Grade 3 — Better than average
7,133

 
3,064

 
—

 
—

 
—

 
—

 
10,197

Grade 4 — Average
332,753

 
62,141

 
4,546

 
—

 
—

 
—

 
399,440

Grade 5 — Acceptable
65,422

 
1,769

 
317

 
—

 
—

 
—

 
67,508

Total Pass Credits
405,908

 
71,804

 
4,863

 
—

 
—

 
—

 
482,575

Grade 6 — Special mention
655

 
3,782

 
25

 
—

 
—

 
—

 
4,462

Grade 7 — Substandard
12,817

 
408

 
1,038

 
—

 
—

 
—

 
14,263

Grade 8 — Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

Grade 9 — Loss
—

 
—

 
—

 
—

 
—

 
—

 
—

Total loans internally credit risk graded
419,380

 
75,994

 
5,926

 
—

 
—

 
—

 
501,300

Loans not monitored by internal risk grade:

 

 

 

 

 

 

Current loans not internally risk graded
—

 
—

 
64,037

 
124,682

 
217,063

 
12,613

 
418,395

30-59 days past due loans not internally risk graded
—

 
—

 
213

 
497

 
420

 
30

 
1,160

60-89 days past due loans not internally risk graded
—

 
—

 
16

 
409

 
149

 
140

 
714

90+ days past due loans not internally risk graded
—

 
—

 
1,195

 
1,422

 
128

 
89

 
2,834

Total loans not internally credit risk graded
—

 
—

 
65,461

 
127,010

 
217,760

 
12,872

 
423,103

Total loans internally and not internally credit risk graded
$
419,380

 
$
75,994

 
$
71,387

 
$
127,010

 
$
217,760

 
$
12,872

 
$
924,403

 
*
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.

Commercial
Credit Exposure
Commercial
Real Estate
 
Commercial
 
Residential
Real
Estate*
 
Home
Equity
Loans
 
Indirect
 
Consumer
 
Total
December 31, 2014
 
(Dollars in thousands)
Loans graded by internal credit risk grade:

 

 

 

 

 

 

Grade 1 — Minimal
$
—

 
$
66

 
$
—

 
$
—

 
$
—

 
$
—

 
$
66

Grade 2 — Modest
600

 
4,521

 
—

 
—

 
—

 
—

 
5,121

Grade 3 — Better than average
8,576

 
117

 
—

 
—

 
—

 
—

 
8,693

Grade 4 — Average
301,225

 
60,074

 
3,249

 
—

 
—

 
—

 
364,548

Grade 5 — Acceptable
94,536

 
8,395

 
2,007

 
—

 
—

 
—

 
104,938

Total Pass Credits
404,937

 
73,173

 
5,256

 
—

 
—

 
—

 
483,366

Grade 6 — Special mention
2,365

 
4,163

 
26

 
—

 
—

 
—

 
6,554

Grade 7 — Substandard
18,090

 
189

 
1,067

 
—

 
—

 
—

 
19,346

Grade 8 — Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

Grade 9 — Loss
—

 
—

 
—

 
—

 
—

 
—

 
—

Total loans internally credit risk graded
425,392

 
77,525

 
6,349

 
—

 
—

 
—

 
509,266

Loans not monitored by internal risk grade:

 

 

 

 

 

 

Current loans not internally risk graded
—

 
—

 
63,643

 
123,842

 
215,690

 
12,979

 
416,154

30-59 days past due loans not internally risk graded
—

 
—

 
230

 
530

 
287

 
235

 
1,282

60-89 days past due loans not internally risk graded
—

 
—

 
37

 
315

 
92

 
22

 
466

90+ days past due loans not internally risk graded
—

 
—

 
1,237

 
1,242

 
130

 
248

 
2,857

Total loans not internally credit risk graded
—

 
—

 
65,147

 
125,929

 
216,199

 
13,484

 
420,759

Total loans internally and not internally credit risk graded
$
425,392

 
$
77,525

 
$
71,496

 
$
125,929

 
$
216,199

 
$
13,484

 
$
930,025

 * 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.