7. Allowance For Loan Losses

6 Months Ended

Jun. 30, 2013

Allowance for Loan and Lease Losses, Adjustments, Net [Abstract]

Allowance For Loan Losses

An analysis of the allowance for loan losses for the six month periods ended June 30, 2013 and 2012, and for the year ended December 31, 2012 is as follows:

	Six Months Ended				Year Ended
	June 30,				December 31,
Dollars in thousands	2013		2012		2012
Balance, beginning of year	$	17,933	$	17,712	$	17,712
Losses:
Commercial		54		126		1,273
Commercial real estate
Owner occupied		66		636		636
Non-owner occupied		9		457		806
Construction and development
Land and land development		2,166		1,715		3,390
Construction		—		368		367
Residential real estate
Non-jumbo		384		480		1,372
Jumbo		3,625		237		737
Home equity		76		4		5
Consumer		34		65		136
Other		51		41		95
Total		6,465		4,129		8,817
Recoveries:
Commercial		4		4		13
Commercial real estate
Owner occupied		2		24		33
Non-owner occupied		—		13		31
Construction and development
Land and land development		9		14		61
Construction		—		—		—
Real estate - mortgage
Non-jumbo		43		32		81
Jumbo		3		84		86
Home equity		1		60		61
Consumer		37		34		95
Other		55		40		77
Total		154		305		538
Net losses		6,311		3,824		8,279
Provision for loan losses		2,500		4,002		8,500
Balance, end of year	$	14,122	$	17,890	$	17,933

Activity in the allowance for loan losses by loan class during the first six months of 2013 is as follows:

	Construction & Land Development
		Land &						Commercial Real Estate		Residential Real Estate
		Land								Non-
		Devlop-		Construc-		Commer-		Owner		Owner			Non-					Home			Con-
Dollars in thousands		ment		tion		cial		Occupied		Occupied			jumbo			Jumbo		Equity			sumer			Other			Total
Allowance for loan losses
Beginning balance	$	5,220	$	138	$	782	$	1,387	$	3,269		$	2,617		$	3,942	$	425		$	132		$	21		$	17,933
Charge-offs		2,166		—		54		66		9			384			3,625		76			34			51			6,465
Recoveries		9		—		4		2		—			43			3		1			37			55			154
Provision		1,257		22		339		334		(1,727	)		(95	)		2,498		(77	)		(42	)		(9	)		2,500
Ending balance	$	4,320	$	160	$	1,071	$	1,657	$	1,533		$	2,181		$	2,818	$	273		$	93		$	16		$	14,122
Allowance related to:
Loans individually
evaluated for impairment	$	1,843	$	—	$	387	$	741	$	165		$	308		$	1,043	$	28		$	13		$	—		$	4,528
Loans collectively
evaluated for impairment		2,477		160		684		916		1,368			1,873			1,775		245			80			16			9,594
Loans acquired with
deteriorated credit quality		—		—		—		—		—			—			—		—			—			—			—
Total	$	4,320	$	160	$	1,071	$	1,657	$	1,533		$	2,181		$	2,818	$	273		$	93		$	16		$	14,122
Loans
Loans individually
evaluated for impairment	$	27,364	$	—	$	7,987	$	14,731	$	6,814		$	6,213		$	17,824	$	213		$	62		$	—		$	81,208
Loans collectively
evaluated for impairment		46,063		7,634		70,976		134,929		270,959			210,546			40,743		53,561			20,085			3,397		$	858,893
Loans acquired with
deteriorated credit quality		—		—		—		—		—			—			—		—			—			—			—
Total	$	73,427	$	7,634	$	78,963	$	149,660	$	277,773		$	216,759		$	58,567	$	53,774		$	20,147		$	3,397		$	940,101