XML 41 R22.htm IDEA: XBRL DOCUMENT v2.4.0.8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 9 Months Ended
Sep. 30, 2014
Loans and Leases Receivable Disclosure [Abstract]  
Composition of Loan Portfolio, Excluding Residential Loans Held for Sale
The composition of the Company’s loan portfolio at September 30, 2014 and December 31, 2013 was as follows:   
 
September 30,
2014
 
December 31,
2013
Residential real estate loans
$
577,515

 
$
570,391

Commercial real estate loans
613,510

 
541,099

Commercial loans
245,612

 
179,203

Home equity loans
271,858

 
272,630

Consumer loans
18,149

 
17,651

Deferred loan fees, net of costs
(417
)
 
(572
)
Total loans
$
1,726,227

 
$
1,580,402
Summary of Activity in Allowance for Loan Losses
The following table presents the activity in the ALL and select loan information by portfolio segment for the three and nine months ended September 30, 2014: 
 
Residential 
Real Estate
 
Commercial 
Real Estate
 
Commercial
 
Home
Equity
 
Consumer
 
Unallocated
 
Total
ALL for the three months ended:
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
$
5,141

 
$
4,361

 
$
6,484

 
$
2,752

 
$
318

 
$
2,849

 
$
21,905

Loans charged off
(9
)
 
(100
)
 
(675
)
 
(166
)
 
(59
)
 
—

 
(1,009
)
Recoveries
2

 
17

 
117

 
8

 
11

 
—

 
155

Provision (reduction)
122

 
82

 
35

 
(63
)
 
23

 
335

 
534

Ending balance
$
5,256

 
$
4,360

 
$
5,961

 
$
2,531

 
$
293

 
$
3,184

 
$
21,585

ALL for the nine months ended:
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
5,603

 
$
4,374

 
$
6,220

 
$
2,403

 
$
319

 
$
2,671

 
$
21,590

Loans charged off
(370
)
 
(276
)
 
(1,201
)
 
(272
)
 
(99
)
 
—

 
(2,218
)
Recoveries
136

 
67

 
286

 
19

 
30

 
—

 
538

Provision (reduction)
(113
)
 
195

 
656

 
381

 
43

 
513

 
1,675

Ending balance
$
5,256

 
$
4,360

 
$
5,961

 
$
2,531

 
$
293

 
$
3,184

 
$
21,585

ALL balance attributable to loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
1,420

 
$
222

 
$
121

 
$
573

 
$
111

 
$
—

 
$
2,447

Collectively evaluated for impairment
3,836

 
4,138

 
5,840

 
1,958

 
182

 
3,184

 
19,138

Total ending ALL
$
5,256

 
$
4,360

 
$
5,961

 
$
2,531

 
$
293

 
$
3,184

 
$
21,585

Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
10,964

 
$
6,710

 
$
3,380

 
$
1,860

 
$
309

 
$
—

 
$
23,223

Collectively evaluated for impairment
566,134

 
606,800

 
242,232

 
269,998

 
17,840

 
—

 
1,703,004

Total ending loans balance
$
577,098

 
$
613,510

 
$
245,612

 
$
271,858

 
$
18,149

 
$
—

 
$
1,726,227

 
The following table presents the activity in the ALL and select loan information by portfolio segment for the three and nine months ended September 30, 2013: 
 
Residential
Real Estate
 
Commercial
Real Estate
 
Commercial
 
Home
Equity
 
Consumer
 
Unallocated
 
Total
ALL for the three months ended:
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
$
6,232

 
$
3,590

 
$
5,788

 
$
3,428

 
$
221

 
$
4,062

 
$
23,321

Loans charged off
(340
)
 
(591
)
 
(379
)
 
(86
)
 
(42
)
 
—

 
(1,438
)
Recoveries
—

 
14

 
77

 
8

 
12

 
—

 
111

Provision (reduction)
709

 
547

 
465

 
137

 
40

 
(1,231
)
 
667

Ending balance
$
6,601

 
$
3,560

 
$
5,951

 
$
3,487

 
$
231

 
$
2,831

 
$
22,661

ALL for the nine months ended:
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
$
6,996

 
$
4,549

 
$
5,933

 
$
2,520

 
$
184

 
$
2,862

 
$
23,044

Loans charged off
(687
)
 
(762
)
 
(823
)
 
(423
)
 
(175
)
 
—

 
(2,870
)
Recoveries
5

 
106

 
275

 
10

 
40

 
—

 
436

Provision (reduction)
287

 
(333
)
 
566

 
1,380

 
182

 
(31
)
 
2,051

Ending balance
$
6,601

 
$
3,560

 
$
5,951

 
$
3,487

 
$
231

 
$
2,831

 
$
22,661

ALL balance attributable to loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
1,655

 
$
686

 
$
177

 
$
449

 
$
81

 
$
—

 
$
3,048

Collectively evaluated for impairment
4,946

 
2,874

 
5,774

 
3,038

 
150

 
2,831

 
19,613

Total ending ALL
$
6,601

 
$
3,560

 
$
5,951

 
$
3,487

 
$
231

 
$
2,831

 
$
22,661

Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
14,059

 
$
11,016

 
$
3,369

 
$
1,521

 
$
498

 
$
—

 
$
30,463

Collectively evaluated for impairment
550,493

 
511,594

 
174,486

 
304,782

 
18,128

 
—

 
1,559,483

Total ending loans balance
$
564,552

 
$
522,610

 
$
177,855

 
$
306,303

 
$
18,626

 
$
—

 
$
1,589,946


The following table presents the activity in the ALL and select loan information by portfolio segment for the year ended December 31, 2013: 
 
Residential
Real Estate
 
Commercial
Real Estate
 
Commercial
 
Home
Equity
 
Consumer
 
Unallocated
 
Total
ALL:
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
$
6,996

 
$
4,549

 
$
5,933

 
$
2,520

 
$
184

 
$
2,862

 
$
23,044

Loans charged off
(1,059
)
 
(952
)
 
(1,426
)
 
(647
)
 
(190
)
 
—

 
(4,274
)
Recoveries
35

 
121

 
495

 
56

 
61

 
—

 
768

Provision (reduction)
(369
)
 
656

 
1,218

 
474

 
264

 
(191
)
 
2,052

Ending balance
$
5,603

 
$
4,374

 
$
6,220

 
$
2,403

 
$
319

 
$
2,671

 
$
21,590

ALL balance attributable to loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
1,750

 
$
526

 
$
132

 
$
433

 
$
140

 
$
—

 
$
2,981

Collectively evaluated for impairment
3,853

 
3,848

 
6,088

 
1,970

 
179

 
2,671

 
18,609

Total ending ALL
$
5,603

 
$
4,374

 
$
6,220

 
$
2,403

 
$
319

 
$
2,671

 
$
21,590

Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
14,435

 
$
8,864

 
$
2,635

 
$
1,571

 
$
442

 
$
—

 
$
27,947

Collectively evaluated for impairment
555,384

 
532,235

 
176,568

 
271,059

 
17,209

 
—

 
1,552,455

Total ending loans balance
$
569,819

 
$
541,099

 
$
179,203

 
$
272,630

 
$
17,651

 
$
—

 
$
1,580,402
Credit Risk Exposure Indicators by Portfolio Segment
The following table summarizes credit risk exposure indicators by portfolio segment as of the following dates:
 
Residential 
Real Estate
 
Commercial 
Real Estate
 
Commercial
 
Home
Equity
 
Consumer
 
Total
September 30, 2014
 

 
 

 
 

 
 

 
 

 
 
Pass (Grades 1-6)
$
563,276

 
$
579,266

 
$
228,019

 
$
—

 
$
—

 
$
1,370,561

Performing
—

 
—

 
—

 
269,998

 
17,840

 
287,838

Special Mention (Grade 7)
3,035

 
3,372

 
8,985

 
—

 
—

 
15,392

Substandard (Grade 8)
10,787

 
30,872

 
8,608

 
—

 
—

 
50,267

Non-performing
—

 
—

 
—

 
1,860

 
309

 
2,169

Total
$
577,098

 
$
613,510

 
$
245,612

 
$
271,858

 
$
18,149

 
$
1,726,227

December 31, 2013
 

 
 

 
 

 
 

 
 

 
 
Pass (Grades 1-6)
$
551,035

 
$
496,257

 
$
155,851

 
$
—

 
$
—

 
$
1,203,143

Performing
—

 
—

 
—

 
271,059

 
17,210

 
288,269

Special Mention (Grade 7)
3,196

 
7,749

 
11,315

 
—

 
—

 
22,260

Substandard (Grade 8)
15,588

 
37,093

 
12,037

 
—

 
—

 
64,718

Non-performing
—

 
—

 
—

 
1,571

 
441

 
2,012

Total
$
569,819

 
$
541,099

 
$
179,203

 
$
272,630

 
$
17,651

 
$
1,580,402
Loan Aging Analysis by Portfolio Segment (Including Loans Past Due Over Ninety Days and Non Accrual Loans) and Summary of Non Accrual Loans, Which Include Troubled Debt Restructured Loans, and Loans Past Due Over Ninety Days and Accruing
The following is a loan aging analysis by portfolio segment (including loans past due over 90 days and non-accrual loans) and a summary of non-accrual loans, which include TDRs, and loans past due over 90 days and accruing as of the following dates:
 
30-59 Days
Past Due
 
60-89 Days
Past Due
 
Greater
than
90 Days
 
Total
Past Due
 
Current
 
Total Loans
Outstanding
 
Loans > 90
Days Past
Due and
Accruing
 
Non-Accrual
Loans
September 30, 2014
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential real estate
$
700

 
$
355

 
$
5,693

 
$
6,748

 
$
570,350

 
$
577,098

 
$
—

 
$
7,098

Commercial real estate
1,510

 
324

 
3,729

 
5,563

 
607,947

 
613,510

 
—

 
5,707

Commercial
2,226

 
45

 
1,420

 
3,691

 
241,921

 
245,612

 
—

 
3,051

Home equity
1,805

 
207

 
1,606

 
3,618

 
268,240

 
271,858

 
—

 
1,860

Consumer
46

 
27

 
290

 
363

 
17,786

 
18,149

 
—

 
309

Total
$
6,287

 
$
958

 
$
12,738

 
$
19,983

 
$
1,706,244

 
$
1,726,227

 
$
—

 
$
18,025

December 31, 2013
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential real estate
$
3,218

 
$
684

 
$
7,269

 
$
11,171

 
$
558,648

 
$
569,819

 
$
—

 
$
10,520

Commercial real estate
926

 
2,036

 
3,301

 
6,263

 
534,836

 
541,099

 
257

 
7,799

Commercial
159

 
237

 
1,980

 
2,376

 
176,827

 
179,203

 
198

 
2,146

Home equity
1,395

 
388

 
1,007

 
2,790

 
269,840

 
272,630

 
—

 
1,571

Consumer
63

 
21

 
418

 
502

 
17,149

 
17,651

 
—

 
441

Total
$
5,761

 
$
3,366

 
$
13,975

 
$
23,102

 
$
1,557,300

 
$
1,580,402

 
$
455

 
$
22,477
Troubled Debt Restructuring and Specific Reserve Related to TDRs [Table Text Block]
The following is a summary of TDRs by portfolio segment and the associated specific reserve included within the ALL as of September 30, 2014 and December 31, 2013:
 
 
Number of Contracts
 
Current Balance
 
Specific Reserve
 
 
September 30, 2014
 
December 31, 2013
 
September 30, 2014
 
December 31, 2013
 
September 30, 2014
 
December 31, 2013
Residential real estate
 
26

 
26

 
$
4,098

 
$
4,089

 
$
667

 
$
525

Commercial real estate
 
9

 
10

 
2,141

 
2,558

 
11

 
131

Commercial
 
9

 
7

 
437

 
488

 
13

 
—

Home equity and consumer
 
1

 
1

 
30

 
1

 
—

 
—

Total
 
45

 
44

 
$
6,706

 
$
7,136

 
$
691

 
$
656
Summary of All Troubled Debt Restructuring Loans (Accruing and Non Accruing) by Portfolio Segment
 
 
Number of Contracts
 
Pre-Modification
Outstanding Recorded
Investment
 
Post-Modification
Outstanding Recorded
Investment
 
Specific Reserve
Three months ended
 
 
 
 
 
 
 
 
Residential real estate
 
2

 
$
359

 
$
379

 
$
—

Commercial real estate
 
—

 
—

 
—

 
—

Commercial
 
—

 
—

 
—

 
—

Home equity and consumer
 
—

 
—

 
—

 
—

Total
 
2

 
$
359

 
$
379

 
$
—

Nine months ended
 
 
 
 
 
 
 
 
Residential real estate
 
4

 
$
636

 
$
665

 
$
5

Commercial real estate
 
2

 
279

 
286

 
2

Commercial
 
3

 
236

 
236

 
1

Home equity and consumer
 
—

 
—

 
—

 
—

Total
 
9

 
$
1,151

 
$
1,187

 
$
8

The following represents loan modifications qualifying as TDRs by portfolio segment and the associated specific reserve included within the ALL for the three and nine months ended September 30, 2014:
 
 
Number of Contracts
 
Pre-Modification
Outstanding Recorded
Investment
 
Post-Modification
Outstanding Recorded
Investment
 
Specific Reserve
Three months ended:
 
 
 
 
 
 
 
 
Residential real estate
 
—

 
$
—

 
$
—

 
$
—

Commercial real estate
 
1

 
235

 
235

 
—

Commercial
 
3

 
77

 
77

 
9

Home equity and consumer
 
1

 
40

 
30

 
—

Total
 
5

 
$
352

 
$
342

 
$
9

Nine months ended:
 
 
 
 
 
 
 
 
Residential real estate
 
1

 
$
136

 
$
149

 
$
44

Commercial real estate
 
1

 
235

 
235

 
—

Commercial
 
3

 
77

 
77

 
9

Home equity and consumer
 
1

 
40

 
30

 
—

Total
 
6

 
$
488

 
$
491

 
$
53
Summary of Impaired Loan Balances and Associated Allowance by Portfolio Segment
The following is a summary of impaired loan balances and associated allowance by portfolio segment as of and for the three and nine months ended September 30, 2014:
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized(1)
 
Average
Recorded
Investment
 
Interest
Income
Recognized
With an allowance recorded:
 

 
 

 
 

 
 

 
 

 
 
 
 
Residential real estate
$
9,441

 
$
9,441

 
$
1,420

 
$
9,236

 
$
38

 
$
9,928

 
$
102

Commercial real estate
2,987

 
2,987

 
222

 
3,142

 
1

 
5,588

 
2

Commercial
1,562

 
1,562

 
121

 
2,724

 
(2
)
 
2,653

 
8

Home equity
1,510

 
1,510

 
573

 
1,486

 
—

 
1,571

 
—

Consumer
292

 
292

 
111

 
333

 
—

 
392

 
—

Ending Balance
15,792

 
15,792

 
2,447

 
16,921

 
37

 
20,132

 
112

Without an allowance recorded:
 

 
 

 
 

 
 

 
 

 
 
 
 
Residential real estate
1,523

 
1,880

 
—

 
1,751

 
2

 
2,340

 
5

Commercial real estate
3,723

 
4,116

 
—

 
3,490

 
14

 
2,230

 
43

Commercial
1,818

 
2,318

 
—

 
870

 
6

 
609

 
8

Home equity
350

 
477

 
—

 
403

 
—

 
415

 
—

Consumer
17

 
37

 
—

 
17

 
—

 
17

 
—

Ending Balance
7,431

 
8,828

 
—

 
6,531

 
22

 
5,611

 
56

Total impaired loans
$
23,223

 
$
24,620

 
$
2,447

 
$
23,452

 
$
59

 
$
25,743

 
$
168

(1) Negative interest income represents the re-allocation of income between "with an allowance recorded" and "without an allowance recorded" (or vice versa) during the period.

The following is a summary of impaired loan balances and associated allowance by portfolio segment as of and for the three and nine months ended September 30, 2013:
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
With an allowance recorded:
 

 
 

 
 

 
 

 
 

 
 
 
 
Residential real estate
$
10,746

 
$
10,746

 
$
1,655

 
$
10,457

 
$
32

 
$
10,130

 
$
91

Commercial real estate
8,497

 
8,497

 
686

 
6,503

 
9

 
4,976

 
18

Commercial
2,347

 
2,347

 
177

 
2,606

 
3

 
2,721

 
6

Home equity
1,263

 
1,263

 
449

 
1,245

 
—

 
1,307

 
—

Consumer
480

 
480

 
81

 
481

 
—

 
466

 
—

Ending Balance
23,333

 
23,333

 
3,048

 
21,292

 
44

 
19,600

 
115

Without an allowance recorded:
 

 
 

 
 

 
 

 
 

 
 
 
 
Residential real estate
3,313

 
4,439

 
—

 
2,816

 
9

 
2,908

 
22

Commercial real estate
2,519

 
3,167

 
—

 
3,663

 
10

 
3,750

 
56

Commercial
1,022

 
1,213

 
—

 
907

 
2

 
699

 
8

Home equity
258

 
450

 
—

 
291

 
—

 
356

 
—

Consumer
18

 
38

 
—

 
7

 
—

 
3

 
—

Ending Balance
7,130

 
9,307

 
—

 
7,684

 
21

 
7,716

 
86

Total impaired loans
$
30,463

 
$
32,640

 
$
3,048

 
$
28,976

 
$
65

 
$
27,316

 
$
201


The following is a summary of impaired loan balances and associated allowance by portfolio segment as of and for the year ended December 31, 2013:
 
 
 
 
 
 
 
Year Ended
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
With an allowance recorded:
 
 
 

 
 

 
 

 
 

Residential real estate
$
11,902

 
$
11,902

 
$
1,750

 
$
10,411

 
$
118

Commercial real estate
6,805

 
6,805

 
526

 
5,517

 
20

Commercial
1,876

 
1,876

 
132

 
2,543

 
10

Home equity
1,228

 
1,228

 
433

 
1,291

 
—

Consumer
425

 
425

 
140

 
460

 
—

Ending Balance
22,236

 
22,236

 
2,981

 
20,222

 
148

Without an allowance recorded:
 

 
 

 
 

 
 

 
 

Residential real estate
2,533

 
3,846

 
—

 
2,925

 
28

Commercial real estate
2,059

 
2,782

 
—

 
3,362

 
55

Commercial
759

 
871

 
—

 
765

 
8

Home equity
343

 
479

 
—

 
334

 
—

Consumer
17

 
37

 
—

 
11

 
—

Ending Balance
5,711

 
8,015

 
—

 
7,397

 
91

Total impaired loans
$
27,947

 
$
30,251

 
$
2,981

 
$
27,619

 
$
239