Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2012

Allowance for Loan Losses [Abstract]

Summary of changes in allowance for loan losses

The following table summarizes the changes in the Company’s allowance for loan losses for the periods indicated.

	Three months ended September 30,						Nine months ended September 30,
	2012			2011			2012			2011
	(in thousands)
Allowance for loan losses, beginning of period	$	17,979		$	15,915		$	16,574		$	14,053
Loans charged off		(728	)		(1,283	)		(1,787	)		(2,252	)
Recoveries on loans previously charged-off		157			170			621			601
Net charge-offs		(571	)		(1,113	)		(1,166	)		(1,651	)
Provision charged to expense		1,250			1,200			3,250			3,600
Allowance for loan losses, end of period	$	18,658		$	16,002		$	18,658		$	16,002

Summary of allowance for loan losses

Further information pertaining to the allowance for loan losses for the three months ending September 30, 2012 follows:

	Construction and  land development		Commercial and industrial			Commercial real estate		Residential real estate			Consumer and other			Home Equity		Unallocated			Total
	(Dollars in thousands)
Allowance for loan losses:
Balance at June 30, 2012	$	2,889	$	3,466		$	7,754	$	1,793		$	293		$	681	$	1,103		$	17,979
Charge-offs		—		(532	)		—		(49	)		(147	)		—		—			(728	)
Recoveries		—		38			2		2			99			16		—			157
Provision		140		133			967		240			52			176		(458	)		1,250
Balance at September 30, 2012	$	3,029	$	3,105		$	8,723	$	1,986		$	297		$	873	$	645		$	18,658

Further information pertaining to the allowance for loan losses for three months ending September 30, 2011 follows:

	Construction and Land Development			Commercial and Industrial			Commercial Real Estate			Residential Real Estate		Consumer			Home Equity		Unallocated		Total
	(Dollars in thousands)
Allowance for loan losses:
Balance at June 30, 2011	$	2,572		$	3,575		$	6,321		$	1,745	$	291		$	775	$	636	$	15,915
Charge-offs		(900	)		(203	)		—			—		(180	)		—		—		(1,283	)
Recoveries		—			66			—			4		100			—		—		170
Provision		1,312			(217	)		(364	)		31		81			8		349		1,200
Balance at September 30, 2011	$	2,984		$	3,221		$	5,957		$	1,780	$	292		$	783	$	985	$	16,002

Summary of allowances for loan losses for nine months

Further information pertaining to the allowance for loan losses for nine months ending September 30, 2012 follows:

	Construction and  Land Development		Commercial and Industrial			Commercial Real Estate		Residential Real Estate			Consumer			Home Equity			Unallocated			Total
	(Dollars in thousands)
Allowance for loan losses:
Balance at December 31, 2011	$	2,893	$	3,139		$	6,566	$	1,886		$	356		$	704		$	1,030		$	16,574
Charge-offs		—		(931	)		—		(110	)		(587	)		(159	)		—			(1,787	)
Recoveries		—		243			5		11			346			16			—			621
Provision		136		654			2,152		199			182			312			(385	)		3,250
Ending balance at September 30, 2012	$	3,029	$	3,105		$	8,723	$	1,986		$	297		$	873		$	645		$	18,658
Amount of allowance for loan losses for loans deemed to be impaired	$	1,000	$	455		$	434	$	127		$	—		$	97		$	—			2,113
Amount of allowance for loan losses for loans not deemed to be impaired	$	2,029	$	2,650		$	8,289	$	1,859		$	297		$	776		$	645		$	16,545
Loans:
Ending balance	$	38,318	$	78,567		$	562,252	$	262,426		$	6,661		$	116,699		$	—		$	1,064,923
Loans deemed to be impaired	$	1,500	$	1,882		$	2,302	$	777		$	—		$	97		$	—		$	6,558
Loans not deemed to be impaired	$	36,818	$	76,685		$	559,950	$	261,649		$	6,661		$	116,602		$	—		$	1,058,365

Further information pertaining to the allowance for loan losses for nine months ending September 30, 2011 follows:

	Construction and Land Development			Commercial and Industrial			Commercial Real Estate		Residential Real Estate			Consumer			Home Equity			Unallocated		Total
	(Dollars in thousands)
Allowance for loan losses:
Balance at December 31, 2010	$	1,752		$	3,163		$	5,671	$	1,718		$	298		$	725		$	726	$	14,053
Charge-offs		(900	)		(585	)		—		(281	)		(485	)		(1	)		—		(2,252	)
Recoveries		—			222			—		19			360			—			—		601
Provision		2,132			421			286		324			119			59			259		3,600
Balance at September 30, 2011	$	2,984		$	3,221		$	5,957	$	1,780		$	292		$	783		$	985	$	16,002
Amount of allowance for loan losses for loans deemed to be impaired	$	350		$	345		$	227	$	3		$	—		$	—		$	—		925
Amount of allowance for loan losses for loans not deemed to be impaired	$	2,634		$	2,876		$	5,730	$	1,777		$	292		$	783		$	985	$	15,077
Loans:
Ending balance	$	54,498		$	84,765		$	458,858	$	235,636		$	6,419		$	111,131		$	—	$	951,307
Loans deemed to be impaired	$	1,800		$	1,778		$	4,247	$	483		$	—		$	—		$	—	$	8,308
Loans not deemed to be impaired	$	52,698		$	82,987		$	454,611	$	235,153		$	6,419		$	111,131		$	—	$	942,999

Loans by risk rating

The following table presents the Company’s loans by risk rating at September 30, 2012.

	Construction and land development		Commercial and industrial		Commercial real estate
	(Dollars in thousands)
Grade:
1-3 (Pass)	$	29,380	$	76,213	$	555,721
4 (Monitor)		7,438		472		4,229
5 (Substandard)		—		—		—
6 (Doubtful)		—		—		—
Impaired		1,500		1,882		2,302
Total	$	38,318	$	78,567	$	562,252

The following table presents the Company’s loans by risk rating at December 31, 2011.

	Construction and land development		Commercial and industrial		Commercial real estate
	(Dollars in thousands)
Grade:
1-3(Pass)	$	48,298	$	80,140	$	478,186
4 (Monitor)		7,021		739		4,748
5 (Substandard)		—		—		—
6 (Doubtful)		—		—		—
Impaired		1,500		1,525		4,561
Total	$	56,819	$	82,404	$	487,495

Aging of past due loans

Further information pertaining to the allowance for loan losses at September 30, 2012 follows:

	Accruing 30-89  Days Past Due		Non Accrual		Accrual Greater Than 90 Days		Total Past  Due		Current Loans		Total
	(Dollars in thousands)
Construction and land development	$	—	$	1,500	$	—	$	1,500	$	36,818	$	38,318
Commercial and industrial		1,237		1,268		—		2,505		76,062		78,567
Commercial real estate		914		696		—		1,610		560,642		562,252
Residential real estate		954		1,890		—		2,844		259,582		262,426
Consumer and overdrafts		16		6		—		22		6,639		6,661
Home equity		764		98		—		862		115,837		116,699
Total	$	3,885	$	5,458	$	—	$	9,343	$	1,055,580	$	1,064,923

Further information pertaining to the allowance for loan losses at December 31, 2011 follows:

	Accruing 30-89 Days Past Due		Non Accrual		Accrual Greater Than 90 Days		Total Past Due		Current Loans		Total
	(Dollars in thousands)
Construction and land development	$	—	$	1,500	$	—	$	1,500	$	55,319	$	56,819
Commercial and industrial		1,417		763		18		2,198		80,206		82,404
Commercial real estate		2,528		736		—		3,264		484,231		487,495
Residential real estate		2,635		2,324		—		4,959		234,348		239,307
Consumer and overdrafts		519		9		—		528		7,153		7,681
Home equity		171		495		—		666		110,120		110,786
Total	$	7,270	$	5,827	$	18	$	13,115	$	971,377	$	984,492

Information pertaining to impaired loans

The following is information pertaining to impaired loans for September 30, 2012:

	Carrying Value		Unpaid Principal Balance		Required Reserve		Average Carrying Value for 3 Months Ending 9/30/12		Average Carrying Value for 9 Months Ending 9/30/12		Interest Income Recognized For 3 Months Ending  9/30/12		Interest Income Recognized For 9 months Ending  9/30/12
	(Dollars in thousands)
With no required reserve recorded:
Construction and land development	$	—	$	—	$	—	$	—	$	450	$	—	$	—
Commercial and industrial		635		1,346		—		473		382		—		—
Commercial real estate		172		200		—		174		178		—		—
Residential real estate		31		31		—		218		152		—		—
Consumer		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		—
Total	$	838	$	1,577	$	—	$	865	$	1,162	$	—	$	—
With required reserve recorded:
Construction and land development	$	1,500	$	3,292	$	1,000	$	1,500	$	1,050	$	—	$	—
Commercial and industrial		1,247		1,295		455		1,745		1,492		12		35
Commercial real estate		2,130		2,170		434		2,138		3,027		40		84
Residential real estate		746		746		127		494		610		1		1
Consumer		—		—		—		—		—		—		—
Home equity		97		97		97		73		29		—		—
Total	$	5,720	$	7,600	$	2,113	$	5,950	$	6,208	$	53	$	120
Total
Construction and land development	$	1,500	$	3,292	$	1,000	$	1,500	$	1,500	$	—	$	—
Commercial and industrial		1,882		2,641		455		2,218		1,874		12		35
Commercial real estate		2,302		2,370		434		2,312		3,205		40		84
Residential real estate		777		777		127		712		762		1		1
Consumer		—		—		—		—		—		—		—
Home equity		97		97		97		73		29		—		—
Total	$	6,558	$	9,177	$	2,113	$	6,815	$	7,370	$	53	$	120

The following is information pertaining to impaired loans for September 30, 2011:

	Carrying Value		Unpaid Principal Balance		Required Reserve		Average Carrying Value For 3 Months Ending 9/30/11		Average Carrying Value For 9 Months Ending 9/30/11		Interest Income Recognized for 3 Months Ending 9/30/11		Interest Income Recognized for 9 Months Ending 9/30/11
	(Dollars in thousands)
With no required reserve recorded:
Construction and land development	$	—	$	—	$	—	$	1,350	$	2,940	$	—	$	—
Commercial and industrial		642		1,090		—		443		429		1		3
Commercial real estate		415		431		—		246		378		—		—
Residential real estate		450		450		—		—		—		—		—
Consumer		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		—
Total	$	1,507	$	1,971	$	—	$	2,039	$	3,747	$	1	$	3
With required reserve recorded:
Construction and land development		1,800	$	3,292	$	350	$	2,110	$	844	$	—	$	—
Commercial and industrial		1,136		1,160		345		1,428		1,087		6		10
Commercial real estate		3,832		3,858		227		6,738		5,215		82		112
Residential real estate		33		33		3		146		68		1		2
Consumer		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		—
Total	$	6,801	$	8,343	$	925	$	10,422	$	7,214	$	89	$	124
Total
Construction and land development	$	1,800	$	3,292	$	350	$	3,460	$	3,784	$	—	$	—
Commercial and industrial		1,778		2,250		345		1,871		1,516		7		13
Commercial real estate		4,247		4,289		227		6,984		5,593		82		112
Residential real estate		483		483		3		146		68		1		2
Consumer		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		—
Total	$	8,308	$	10,314	$	925	$	12,461	$	10,961	$	90	$	127

Troubled debt restructurings

Troubled Debt Restructurings occurring during the three month period ended September 30, 2011:

	Number of Contracts		Pre- modification outstanding recorded investment		Post- modification outstanding recorded investment
	(Dollars in thousands)
Construction and land development		—	$	—	$	—
Commercial and industrial		1		41		41
Commercial real estate		—		—		—
Total		1	$	41	$	41

Troubled Debt Restructurings occurring during the nine month period ended September 30, 2011:

	Number of Contracts		Pre- modification outstanding recorded investment		Post- modification outstanding recorded investment
	(Dollars in thousands)
Construction and land development		1	$	39	$	—
Commercial and industrial		7		484		454
Commercial real estate		4		2,641		2,636
Total		12	$	3,164	$	3,090