Loans (Tables)

9 Months Ended

Sep. 30, 2013

Receivables [Abstract]

Summary of Loans

The following is a summary of loans:

(Dollars in thousands)	September 30, 2013				December 31, 2012
	Amount		%		Amount		%
Commercial:
Mortgages (1)		$727,375	31	%		$710,813	31	%
Construction and development (2)	51,951		2		27,842		1
Other (3)	518,566		22		513,764		23
Total commercial	1,297,892		55		1,252,419		55
Residential real estate:
Mortgages (4)	711,427		30		692,798		30
Homeowner construction	20,265		1		24,883		1
Total residential real estate	731,692		31		717,681		31
Consumer:
Home equity lines (5)	227,063		10		226,861		10
Home equity loans (5)	41,158		2		39,329		2
Other (6)	55,961		2		57,713		2
Total consumer	324,182		14		323,903		14
Total loans (7)		$2,353,766	100	%		$2,294,003	100	%

(1) Amortizing mortgages and lines of credit, primarily secured by income producing property. As of September 30, 2013 and December 31, 2012, $204.1 million and $238.6 million, respectively, were pledged as collateral for FHLBB borrowings and letters of credit.

(2) Loans for construction commercial properties, loans to developers for construction of residential properties, and loans for land development.

(3) Loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate. As of September 30, 2013, $47.5 million and $24.3 million, respectively, were pledged as collateral for FHLBB borrowings and letters of credit and were collateralized for the discount window at the Federal Reserve Bank.  Comparable amounts for December 31, 2012 were $51.8 million and $29.5 million, respectively.

(4) As of September 30, 2013 and December 31, 2012, $647.3 million and $627.4 million, respectively, were pledged as collateral for FHLBB borrowings and letters of credit.

(5) As of September 30, 2013 and December 31, 2012, $191.8 million and $189.4 million, respectively, were pledged as collateral for FHLBB borrowings and letters of credit.

(6) Fixed-rate consumer installment loans.

(7) Includes net unamortized loan origination costs of $531 thousand and $39 thousand, respectively, and net unamortized premiums on purchased loans of $100 thousand and $83 thousand, respectively, at September 30, 2013 and December 31, 2012.

Nonaccrual Loans

The following is a summary of nonaccrual loans, segregated by class of loans, as of the dates indicated:

(Dollars in thousands)	Sep 30, 2013		Dec 31, 2012
Commercial:
Mortgages		$8,956		$10,681
Construction and development	—		—
Other	1,248		4,412
Residential real estate:
Mortgages	8,095		6,158
Homeowner construction	—		—
Consumer:
Home equity lines	412		840
Home equity loans	768		371
Other	24		81
Total nonaccrual loans		$19,503		$22,543
Accruing loans 90 days or more past due		$—		$—

As of September 30, 2013 and December 31, 2012, nonaccrual loans of $2.2 million and $1.6 million, respectively, were current as to the payment of principal and interest.

Past Due Loans

Past due status is based on the contractual payment terms of the loan. The following tables present an age analysis of past due loans, segregated by class of loans, as of the dates indicated:

(Dollars in thousands)	Days Past Due
September 30, 2013	30-59		60-89		Over 90		Total Past Due		Current		Total Loans
Commercial:
Mortgages		$—		$730		$8,226		$8,956		$718,419		$727,375
Construction and development	—		—		—		—		51,951		51,951
Other	2,648		8		929		3,585		514,981		518,566
Residential real estate:
Mortgages	2,624		1,960		4,843		9,427		702,000		711,427
Homeowner construction	—		—		—		—		20,265		20,265
Consumer:
Home equity lines	636		220		262		1,118		225,945		227,063
Home equity loans	339		104		416		859		40,299		41,158
Other	38		4		15		57		55,904		55,961
Total loans		$6,285		$3,026		$14,691		$24,002		$2,329,764		$2,353,766

(Dollars in thousands)	Days Past Due
December 31, 2012	30-59		60-89		Over 90		Total Past Due		Current		Total Loans
Commercial:
Mortgages		$373		$408		$10,300		$11,081		$699,732		$710,813
Construction and development	—		—		—		—		27,842		27,842
Other	260		296		3,647		4,203		509,561		513,764
Residential real estate:
Mortgages	4,840		1,951		3,658		10,449		682,349		692,798
Homeowner construction	—		—		—		—		24,883		24,883
Consumer:
Home equity lines	753		207		528		1,488		225,373		226,861
Home equity loans	252		114		250		616		38,713		39,329
Other	129		64		66		259		57,454		57,713
Total loans		$6,607		$3,040		$18,449		$28,096		$2,265,907		$2,294,003

Included in past due loans as of September 30, 2013 and December 31, 2012, were nonaccrual loans of $17.3 million and $21.0 million, respectively. All loans 90 days or more past due at September 30, 2013 and December 31, 2012 were classified as nonaccrual.

Impaired Loans

The following is a summary of impaired loans, as of the dates indicated:

(Dollars in thousands)	Recorded Investment (1)				Unpaid Principal				Related Allowance
	Sep 30, 2013		Dec 31, 2012		Sep 30, 2013		Dec 31, 2012		Sep 30, 2013		Dec 31, 2012
No Related Allowance Recorded:
Commercial:
Mortgages		$2,913		$2,357		$6,940		$2,360		$—		$—
Construction and development	—		—		—		—		—		—
Other	1,633		1,058		1,629		1,057		—		—
Residential real estate:
Mortgages	182		1,294		199		1,315		—		—
Homeowner construction	—		—		—		—		—		—
Consumer:
Home equity lines	—		—		—		—		—		—
Home equity loans	—		—		—		—		—		—
Other	—		—		—		—		—		—
Subtotal		$4,728		$4,709		$8,768		$4,732		$—		$—
With Related Allowance Recorded:
Commercial:
Mortgages		$29,972		$17,897		$31,596		$19,738		$1,110		$1,720
Construction and development	—		—		—		—		—		—
Other	1,196		9,939		1,572		10,690		331		694
Residential real estate:
Mortgages	3,494		2,576		3,882		2,947		569		463
Homeowner construction	—		—		—		—		—		—
Consumer:
Home equity lines	173		187		174		255		1		1
Home equity loans	57		117		57		160		—		—
Other	129		137		130		136		2		2
Subtotal		$35,021		$30,853		$37,411		$33,926		$2,013		$2,880
Total impaired loans		$39,749		$35,562		$46,179		$38,658		$2,013		$2,880
Total:
Commercial		$35,714		$31,251		$41,737		$33,845		$1,441		$2,414
Residential real estate	3,676		3,870		4,081		4,262		569		463
Consumer	359		441		361		551		3		3
Total impaired loans		$39,749		$35,562		$46,179		$38,658		$2,013		$2,880

(1) The recorded investment in impaired loans consists of unpaid principal balance, net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs. For impaired accruing loans (troubled debt restructurings for which management has concluded that the collectibility of the loan is not in doubt), the recorded investment also includes accrued interest.

The following table presents the average recorded investment and interest income recognized on impaired loans segregated by loan class for the periods indicated:

(Dollars in thousands)	Average Recorded Investment				Interest Income Recognized
Three months ended September 30,	2013		2012		2013		2012
Commercial:
Mortgages		$29,430		$9,611		$192		$71
Construction and development	—		—		—		—
Other	3,536		10,176		43		73
Residential real estate:
Mortgages	3,818		4,400		51		21
Homeowner construction	—		—		—		—
Consumer:
Home equity lines	173		121		2		—
Home equity loans	58		120		1		2
Other	131		144		2		2
Totals		$37,146		$24,572		$291		$169

(Dollars in thousands)	Average Recorded Investment				Interest Income Recognized
Nine months ended September 30,	2013		2012		2013		2012
Commercial:
Mortgages		$26,110		$8,795		$444		$176
Construction and development	—		—		—		—
Other	7,159		10,756		157		231
Residential real estate:
Mortgages	4,104		4,867		100		66
Homeowner construction	—		—		—		—
Consumer:
Home equity lines	209		167		6		2
Home equity loans	77		138		5		5
Other	146		151		6		7
Totals		$37,805		$24,874		$718		$487

At September 30, 2013, there were no significant commitments to lend additional funds to borrowers whose loans were on nonaccrual status.

Troubled Debt Restructurings

The following tables present loans modified as a troubled debt restructuring during the periods indicated:

(Dollars in thousands)			Outstanding Recorded Investment (1)
	# of Loans		Pre-Modifications				Post-Modifications
Three months ended September 30,	2013	2012	2013		2012		2013		2012
Commercial:
Mortgages	1	2		$6,018		$8,183		$4,909		$8,183
Construction and development	—	—	—		—		—		—
Other	2	—	30		—		30		—
Residential real estate:
Mortgages	—	—	—		—		—		—
Homeowner construction	—	—	—		—		—		—
Consumer:
Home equity lines	—	—	—		—		—		—
Home equity loans	—	—	—		—		—		—
Other	—	—	—		—		—		—
Totals	3	2		$6,048		$8,183		$4,939		$8,183

(Dollars in thousands)			Outstanding Recorded Investment (1)
	# of Loans		Pre-Modifications				Post-Modifications
Nine months ended September 30,	2013	2012	2013		2012		2013		2012
Commercial:
Mortgages	6	5		$15,974		$9,044		$14,785		$9,044
Construction and development	—	—	—		—		—		—
Other	7	7	1,198		1,625		1,198		1,625
Residential real estate:
Mortgages	—	2	—		651		—		651
Homeowner construction	—	—	—		—		—		—
Consumer:
Home equity lines	1	—	92		—		92		—
Home equity loans	—	—	—		—		—		—
Other	—	2	—		5		—		5
Totals	14	16		$17,264		$11,325		$16,075		$11,325

(1) The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs, at the time of the restructuring. For accruing troubled debt restructured loans, the recorded investment also includes accrued interest.

Troubled Debt Restructurings Type of Modification

The following table provides information on how loans were modified as a troubled debt restructuring during the periods indicated.

(Dollars in thousands)
	Three months				Nine months
Periods ended September 30,	2013		2012		2013		2012
Below market interest rate concession	$	6,018	$	—	$	15,836	$	1,426
Payment deferral	—		—		—		240
Maturity / amortization concession	21		—		21		917
Interest only payments	9		—		424		361
Combination(1)	—		8,183		983		8,381
Total		$6,048		$8,183		$17,264		$11,325

(1) Loans included in this classification were modified with a combination of any two of the concessions listed in this table.

Troubled Debt Restructurings Subsequent Default

The following tables present loans modified in a troubled debt restructuring within the previous twelve months for which there was a payment default during the periods indicated:

(Dollars in thousands)	# of Loans		Recorded Investment (1)
Three months ended September 30,	2013	2012	2013		2012
Commercial:
Mortgages	1	—		$482		$—
Construction and development	—	—	—		—
Other	—	3	—		428
Residential real estate:
Mortgages	—	2	—		670
Homeowner construction	—	—	—		—
Consumer:
Home equity lines	—	—	—		—
Home equity loans	—	—	—		—
Other	—	1	—		13
Totals	1	6		$482		$1,111

(Dollars in thousands)	# of Loans		Recorded Investment (1)
Nine months ended September 30,	2013	2012	2013		2012
Commercial:
Mortgages	1	1		$482		$195
Construction and development	—	—	—		—
Other	—	3	—		428
Residential real estate:
Mortgages	—	2	—		670
Homeowner construction	—	—	—		—
Consumer:
Home equity lines	—	—	—		—
Home equity loans	—	—	—		—
Other	—	1	—		13
Totals	1	7		$482		$1,306

(1) The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs. For accruing troubled debt restructured loans, the recorded investment also includes accrued interest.

Credit Quality Indicators - Commercial

The following table presents the commercial loan portfolio, segregated by category of credit quality indicator:

(Dollars in thousands)	Pass				Special Mention				Classified
	Sep 30, 2013		Dec 31, 2012		Sep 30, 2013		Dec 31, 2012		Sep 30, 2013		Dec 31, 2012
Mortgages		$685,924		$669,220		$23,753		$21,649		$17,698		$19,944
Construction and development	51,951		27,842		—		—		—		—
Other	498,231		483,371		16,325		24,393		4,010		6,000
Total commercial loans		$1,236,106		$1,180,433		$40,078		$46,042		$21,708		$25,944

Credit Quality Indicators Residential & Consumer

The following table presents the residential and consumer loan portfolios, segregated by category of credit quality indicator:

(Dollars in thousands)	Under 90 Days Past Due				Over 90 Days Past Due
	Sep 30, 2013		Dec 31, 2012		Sep 30, 2013		Dec 31, 2012
Residential Real Estate:
Accruing mortgages		$703,332		$686,640		$—		$—
Nonaccrual mortgages	3,252		2,500		4,843		3,658
Homeowner construction	20,265		24,883		—		—
Total residential real estate loans		$726,849		$714,023		$4,843		$3,658
Consumer:
Home equity lines		$226,801		$226,333		$262		$528
Home equity loans	40,742		39,078		416		251
Other	55,946		57,648		15		65
Total consumer loans		$323,489		$323,059		$693		$844