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Loans and reserve for credit losses (Tables)
 6 Months Ended
Jun. 30, 2013
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]
The composition of the loan portfolio at June 30, 2013 and December 31, 2012 was as follows (dollars in thousands):
 
 
June 30, 2013
 
December 31, 2012
 
Amount
 
Percent
 
Amount
 
Percent
Commercial real estate:
 

 
 

 
 

 
 

Owner occupied
$
207,060

 
22.7
%
 
$
196,821

 
22.9
%
Non-owner occupied and other
326,817

 
35.8
%
 
328,480

 
38.3
%
Total commercial real estate loans
533,877

 
58.5
%
 
525,301

 
61.2
%
Construction
48,205

 
5.3
%
 
45,650

 
5.3
%
Residential real estate
95,775

 
10.5
%
 
85,494

 
10.0
%
Commercial and industrial
196,977

 
21.6
%
 
162,213

 
18.9
%
Consumer
37,740

 
4.1
%
 
39,506

 
4.6
%
Total loans
912,574

 
100.0
%
 
858,164

 
100.0
%
 
 
 
 
 
 
 
 
Less:
 

 
 

 
 

 
 

Deferred loan fees
(1,693
)
 
 

 
(1,846
)
 
 

Reserve for loan losses
(22,694
)
 
 

 
(27,261
)
 
 

Loans, net
$
888,187

 
 

 
$
829,057

 
 
Allowance for Credit Losses on Financing Receivables [Table Text Block]
The following table presents the reserve for loan losses and the recorded investment in loans, by portfolio segment and impairment evaluation method at June 30, 2013 and December 31, 2012 (dollars in thousands):
 
Reserve for loan losses

Recorded investment in loans
 
Individually
evaluated for
impairment

Collectively
evaluated for
impairment

Total

Individually
evaluated for
impairment

Collectively
evaluated for
impairment

Total
June 30, 2013
 


 


 


 


 


 

Commercial real estate
$
2,152

 
$
8,560

 
$
10,712

 
$
42,477

 
$
491,400

 
$
533,877

Construction
5

 
837

 
842

 
1,664

 
46,541

 
48,205

Residential real estate
173

 
2,799

 
2,972

 
669

 
95,106

 
95,775

Commercial and industrial
331

 
5,017

 
5,348

 
6,922

 
190,055

 
196,977

Consumer
—

 
1,690

 
1,690

 
—

 
37,740

 
37,740

 
$
2,661

 
$
18,903

 
21,564

 
$
51,732

 
$
860,842

 
$
912,574

Unallocated
 

 
 

 
1,130

 
 

 
 

 
 

 
 

 
 

 
$
22,694

 
 

 
 

 
 



















December 31, 2012
 


 


 


 


 


 

Commercial real estate
$
1,088

 
$
10,508

 
$
11,596

 
$
42,859

 
$
482,442

 
$
525,301

Construction
440

 
1,143

 
1,583

 
9,734

 
35,916

 
45,650

Residential real estate
1,141

 
2,410

 
3,551

 
4,840

 
80,654

 
85,494

Commercial and industrial
829

 
6,438

 
7,267

 
9,602

 
152,611

 
162,213

Consumer
301

 
1,876

 
2,177

 
1,636

 
37,870

 
39,506

 
$
3,799

 
$
22,375

 
26,174

 
$
68,671

 
$
789,493

 
$
858,164

Unallocated
 

 
 

 
1,087

 
 

 
 

 
 

 
 

 
 

 
$
27,261

 
 

 
 

 
 

Transactions and allocations in the reserve for loan losses and unfunded loan commitments, by portfolio segment, for the three and six months ended June 30, 2013 and 2012 were as follows (dollars in thousands):
 
Commercial
real estate
 
Construction
 
Residential
real estate
 
Commercial 
and 
industrial
 
Consumer
 
Unallocated
 
Total
Three months ended June 30, 2013
 

 
 

 
 

 
 

 
 

 
 

 
 

Allowance for Loan Losses
 

 
 

 
 

 
 

 
 

 
 

 
 

Balance at March 31, 2013
$
11,225

 
$
1,236

 
$
3,714

 
$
5,676

 
$
2,039

 
$
658

 
$
24,548

Loan loss provision (credit)
261

 
226

 
(570
)
 
887

 
(276
)
 
472

 
1,000

Recoveries
37

 
39

 
71

 
834

 
59

 
—

 
1,040

Loans charged off
(811
)
 
(659
)
 
(243
)
 
(2,049
)
 
(132
)
 
—

 
(3,894
)
Balance at end of period
$
10,712

 
$
842

 
$
2,972

 
$
5,348

 
$
1,690

 
$
1,130

 
$
22,694

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reserve for unfunded lending commitments
 

 
 

 
 

 
 

 
 

 
 

 
 

Balance at March 31, 2013
$
48

 
$
268

 
$
25

 
$
75

 
$
24

 
$
—

 
$
440

Provision for unfunded loan commitments
—

 
—

 
—

 
—

 
—

 
—

 
—

Balance at end of period
$
48

 
$
268

 
$
25

 
$
75

 
$
24

 
$
—

 
$
440

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reserve for credit losses
 

 
 

 
 

 
 

 
 

 
 

 
 

Reserve for loan losses
$
10,712

 
$
842

 
$
2,972

 
$
5,348

 
$
1,690

 
$
1,130

 
$
22,694

Reserve for unfunded lending commitments
48

 
268

 
25

 
75

 
24

 
—

 
440

Total reserve for credit losses
$
10,760

 
$
1,110

 
$
2,997

 
$
5,423

 
$
1,714

 
$
1,130

 
$
23,134

 
Commercial
real estate

Construction

Residential
real estate

Commercial 
and 
industrial

Consumer

Unallocated

Total
Six months ended June 30, 2013
 


 


 


 


 


 


 

Allowance for Loan Losses
 


 


 


 


 


 


 

Balance at December 31, 2012
$
11,596


$
1,583


$
3,551


$
7,267


$
2,177


$
1,087


$
27,261

Loan loss provision (credit)
(19
)

542


(388
)

1,012


(190
)

43


1,000

Recoveries
215


163


188


1,346


118


—


2,030

Loans charged off
(1,080
)

(1,446
)

(379
)

(4,277
)

(415
)

—


(7,597
)
Balance at end of period
$
10,712


$
842


$
2,972


$
5,348


$
1,690


$
1,130


$
22,694






















Reserve for unfunded lending commitments
 


 


 


 


 


 


 

Balance at December 31, 2012
$
48


$
268


$
25


$
75


$
24


$
—


$
440

Provision for unfunded loan commitments
—


—


—


—


—


—


—

Balance at end of period
$
48


$
268


$
25


$
75


$
24


$
—


$
440






















Reserve for credit losses
 


 


 


 


 


 


 

Reserve for loan losses
$
10,712


$
842


$
2,972


$
5,348


$
1,690


$
1,130


$
22,694

Reserve for unfunded lending commitments
48


268


25


75


24


—


440

Total reserve for credit losses
$
10,760


$
1,110


$
2,997


$
5,423


$
1,714


$
1,130


$
23,134

  
 
Commercial
real estate
 
Construction
 
Residential
real estate
 
Commercial 
and 
industrial
 
Consumer
 
Unallocated
 
Total
Three months ended June 30, 2012
 

 
 

 
 

 
 

 
 

 
 

 
 

Allowance for Loan Losses
 

 
 

 
 

 
 

 
 

 
 

 
 

Balance at March 31, 2012
$
22,314

 
$
5,060

 
$
3,864

 
$
9,908

 
$
2,788

 
$
17

 
$
43,951

Loan loss provision (credit)
(145
)
 
(703
)
 
700

 
(429
)
 
(7
)
 
584

 
—

Recoveries
7

 
231

 
85

 
303

 
91

 
—

 
717

Loans charged off
(4,073
)
 
(59
)
 
(956
)
 
(997
)
 
(364
)
 
—

 
(6,449
)
Balance at end of period
$
18,103

 
$
4,529

 
$
3,693

 
$
8,785

 
$
2,508

 
$
601

 
$
38,219

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reserve for unfunded lending commitments
 

 
 

 
 

 
 

 
 

 
 

 
 

Balance at March 31, 2012
$
28

 
$
29

 
$
184

 
$
487

 
$
822

 
$
—

 
$
1,550

Provision for unfunded loan commitments
—

 
—

 
—

 
—

 
—

 
—

 
—

Balance at end of period
$
28

 
$
29

 
$
184

 
$
487

 
$
822

 
$
—

 
$
1,550

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reserve for credit losses
 

 
 

 
 

 
 

 
 

 
 

 
 

Reserve for loan losses
$
18,103

 
$
4,529

 
$
3,693

 
$
8,785

 
$
2,508

 
$
601

 
$
38,219

Reserve for unfunded lending commitments
28

 
29

 
184

 
487

 
822

 
—

 
1,550

Total reserve for credit losses
$
18,131

 
$
4,558

 
$
3,877

 
$
9,272

 
$
3,330

 
$
601

 
$
39,769


 
Commercial
real estate

Construction

Residential
real estate

Commercial 
and 
industrial

Consumer

Unallocated

Total
Six months ended June 30, 2012
 


 


 


 


 


 


 

Allowance for Loan Losses
 


 


 


 


 


 


 

Balance at December 31, 2011
$
21,648

 
$
5,398

 
$
3,259

 
$
11,291

 
$
2,292

 
$
17

 
$
43,905

Loan loss provision (credit)
522

 
(1,192
)
 
1,832

 
(1,348
)
 
702

 
584

 
1,100

Recoveries
13

 
382

 
119

 
483

 
180

 
—

 
1,177

Loans charged off
(4,080
)
 
(59
)
 
(1,517
)
 
(1,641
)
 
(666
)
 
—

 
(7,963
)
Balance at end of period
$
18,103

 
$
4,529

 
$
3,693

 
$
8,785

 
$
2,508

 
$
601

 
$
38,219


 
 
 
 
 
 
 
 
 
 
 
 
 
Reserve for unfunded lending commitments
 

 
 

 
 

 
 

 
 

 
 

 
 

Balance at December 31, 2011
$
28

 
$
29

 
$
184

 
$
487

 
$
822

 
$
—

 
$
1,550

Provision for unfunded loan commitments
—

 
—

 
—

 
—

 
—

 
—

 
—

Balance at end of period
$
28

 
$
29

 
$
184

 
$
487

 
$
822

 
$
—

 
$
1,550


 
 
 
 
 
 
 
 
 
 
 
 
 
Reserve for credit losses
 

 
 

 
 

 
 

 
 

 
 

 
 

Reserve for loan losses
$
18,103

 
$
4,529

 
$
3,693

 
$
8,785

 
$
2,508

 
$
601

 
$
38,219

Reserve for unfunded lending commitments
28

 
29

 
184

 
487

 
822

 
—

 
1,550

Total reserve for credit losses
$
18,131

 
$
4,558

 
$
3,877

 
$
9,272

 
$
3,330

 
$
601

 
$
39,769
Financing Receivable Credit Quality Indicators [Table Text Block]
The following table presents, by portfolio class, the recorded investment in loans by internally assigned grades at June 30, 2013 and December 31, 2012 (dollars in thousands):
 
 
Loan grades
 
 
 
Acceptable
 
Pass-Watch
 
Special
Mention
 
Substandard
 
Total
June 30, 2013
 

 
 

 
 

 
 

 
 

Commercial real estate:
 

 
 

 
 

 
 

 
 

Owner occupied
$
129,906

 
$
25,246

 
$
23,366

 
$
28,542

 
$
207,060

Non-owner occupied
227,647

 
64,932

 
18,706

 
15,532

 
326,817

Total commercial real estate loans
357,553

 
90,178

 
42,072

 
44,074

 
533,877

Construction
38,047

 
5,675

 
1,055

 
3,428

 
48,205

Residential real estate
89,592

 
1,794

 
1,294

 
3,095

 
95,775

Commercial and industrial
179,681

 
5,180

 
4,502

 
7,614

 
196,977

Consumer
37,134

 
605

 
—

 
1

 
37,740

 
$
702,007

 
$
103,432

 
$
48,923

 
$
58,212

 
$
912,574

 
 
 
 
 
 
 
 
 
 
December 31, 2012
 

 
 

 
 

 
 

 
 

Commercial real estate:
 

 
 

 
 

 
 

 
 

Owner occupied
$
122,125

 
$
26,326

 
$
13,622

 
$
34,748

 
$
196,821

Non-owner occupied
214,990

 
39,879

 
24,910

 
48,701

 
328,480

Total commercial real estate loans
337,115

 
66,205

 
38,532

 
83,449

 
525,301

Construction
25,308

 
6,079

 
1,795

 
12,468

 
45,650

Residential real estate
74,576

 
2,207

 
2,086

 
6,625

 
85,494

Commercial and industrial
126,208

 
7,005

 
6,473

 
22,527

 
162,213

Consumer
37,264

 
603

 
—

 
1,639

 
39,506

 
$
600,471

 
$
82,099

 
$
48,886

 
$
126,708

 
$
858,164
Past Due Financing Receivables [Table Text Block]
The following table presents, by portfolio class, an age analysis of past due loans, including loans placed on non-accrual at June 30, 2013 and December 31, 2012 (dollars in thousands):
 
30-89 days
past due
 
90 days
or more
past due
 
Total
past due
 
Current
 
Total
loans
June 30, 2013
 

 
 

 
 

 
 

 
 

Commercial real estate:
 

 
 

 
 

 
 

 
 

Owner occupied
$
428

 
$
3,088

 
$
3,516

 
$
203,544

 
$
207,060

Non-owner occupied
638

 
721

 
1,359

 
325,458

 
326,817

Total commercial real estate loans
1,066

 
3,809

 
4,875

 
529,002

 
533,877

Construction
574

 
1,109

 
1,683

 
46,522

 
48,205

Residential real estate
483

 
386

 
869

 
94,906

 
95,775

Commercial and industrial
3,020

 
1,797

 
4,817

 
192,160

 
196,977

Consumer
96

 
1

 
97

 
37,643

 
37,740

 
$
5,239

 
$
7,102

 
$
12,341

 
$
900,233

 
$
912,574

December 31, 2012
 

 
 

 
 

 
 

 
 

Commercial real estate:
 

 
 

 
 

 
 

 
 

Owner occupied
$
1,240

 
$
4,221

 
$
5,461

 
$
191,360

 
$
196,821

Non-owner occupied
8,660

 
7,183

 
15,843

 
312,637

 
328,480

Total commercial real estate loans
9,900

 
11,404

 
21,304

 
503,997

 
525,301

Construction
1,288

 
2,793

 
4,081

 
41,569

 
45,650

Residential real estate
818

 
364

 
1,182

 
84,312

 
85,494

Commercial and industrial
2,825

 
1,858

 
4,683

 
157,530

 
162,213

Consumer
61

 
12

 
73

 
39,433

 
39,506

 
$
14,892

 
$
16,431

 
$
31,323

 
$
826,841

 
$
858,164
Impaired Financing Receivables [Table Text Block]
The following table presents information related to impaired loans, by portfolio class, at June 30, 2013 and December 31, 2012 (dollars in thousands):
 
Impaired loans
 
 
 
With a
related
allowance
 
Without a
related
allowance
 
Total
recorded
balance
 
Unpaid
principal
balance
 
Related
allowance
June 30, 2013
 

 
 

 
 

 
 

 
 

Commercial real estate:
 

 
 

 
 

 
 

 
 

Owner occupied
$
10,006

 
$
5,916

 
$
15,922

 
$
18,671

 
$
1,936

Non-owner occupied
1,933

 
24,623

 
26,556

 
26,906

 
216

Total commercial real estate loans
11,939

 
30,539

 
42,478

 
45,577

 
2,152

Construction
796

 
868

 
1,664

 
1,833

 
5

Residential real estate
378

 
291

 
669

 
750

 
173

Commercial and industrial
4,461

 
2,460

 
6,921

 
8,795

 
331

Consumer
—

 
—

 
—

 
—

 
—

 
$
17,574

 
$
34,158

 
$
51,732

 
$
56,955

 
$
2,661

 
 
 
 
 
 
 
 
 
 
December 31, 2012
 

 
 

 
 

 
 

 
 

Commercial real estate:
 

 
 

 
 

 
 

 
 

Owner occupied
$
8,538

 
$
7,443

 
$
15,981

 
$
21,610

 
$
988

Non-owner occupied
3,712

 
23,166

 
26,878

 
32,630

 
100

Total commercial real estate loans
12,250

 
30,609

 
42,859

 
54,240

 
1,088

Construction
2,348

 
7,386

 
9,734

 
9,867

 
440

Residential real estate
4,530

 
310

 
4,840

 
5,018

 
1,141

Commercial and industrial
6,493

 
3,109

 
9,602

 
10,982

 
829

Consumer
1,636

 
—

 
1,636

 
1,638

 
301

 
$
27,257

 
$
41,414

 
$
68,671

 
$
81,745

 
$
3,799

The following table presents, by portfolio class, the average recorded investment in impaired loans for the three and six months ended June 30, 2013 and 2012:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2013
 
2012
 
2013
 
2012
Commercial real estate:
 

 
 

 
 

 
 

Owner occupied
$
15,179

 
$
15,768

 
$
15,447

 
$
15,583

Non-owner occupied
28,089

 
37,917

 
27,685

 
37,920

Total commercial real estate loans
43,268

 
53,685

 
43,132

 
53,503

Construction
2,479

 
5,142

 
4,897

 
5,142

Residential real estate
2,751

 
6,173

 
3,447

 
6,160

Commercial and industrial
8,043

 
10,801

 
8,563

 
10,933

Consumer
969

 
1,274

 
1,192

 
1,272

 
$
57,510

 
$
77,075

 
$
61,231

 
$
77,010
Schedule of Financing Receivables, Non Accrual Status [Table Text Block]
Information with respect to the Company’s non-accrual loans, by portfolio class, at June 30, 2013 and December 31, 2012 is as follows (dollars in thousands):
  
 
June 30, 2013
 
December 31, 2012
Commercial real estate:
 

 
 

Owner occupied
$
5,446

 
$
4,836

Non-owner occupied
1,022

 
5,756

Total commercial real estate loans
6,468

 
10,592

Construction
1,018

 
2,839

Residential real estate
734

 
556

Commercial and industrial
2,683

 
3,233

Total non-accrual loans
$
10,903

 
$
17,220

 
 
 
 
Accruing loans which are contractually past due 90 days or more:
 

 
 

Commercial real estate:
 

 
 

Owner occupied
26

 
—

Non-owner occupied
—

 
1,427

Total commercial real estate loans
26

 
1,427

Construction
134

 
—

Residential real estate
—

 
94

Commercial and industrial
97

 
—

Consumer
1

 
12

Total accruing loans which are contractually past due 90 days or more
$
258

 
$
1,533
Troubled Debt Restructurings on Financing Receivables [Table Text Block]
The following table presents, by portfolio segment, the post modification recorded investment for TDRs restructured during the three and six months ended June 30, 2013 and 2012 by the primary type of concession granted:
 
Three Months Ended  
 June 30, 2013
Rate
reduction
 
Term
extension
 
Rate reduction
and term
extension
 
Total
Commercial real estate
$
—

 
$
—

 
$
—

 
$
—

Construction
—

 
—

 
—

 
—

Residential real estate
—

 
—

 
—

 
—

Commercial and industrial
—

 
3

 
—

 
3

Consumer
—

 
—

 
—

 
—

 
$
—

 
$
3

 
$
—

 
$
3

Three Months Ended  
 June 30, 2012
Rate
reduction
 
Term
extension
 
Rate reduction
and term
extension
 
Total
Commercial real estate
$
—

 
$
132

 
$
—

 
$
132

Construction
—

 
4,425

 
—

 
4,425

Residential real estate
—

 
83

 
—

 
83

Commercial and industrial
—

 
240

 
—

 
240

Consumer
—

 
151

 
—

 
151

 
$
—

 
$
5,031

 
$
—

 
$
5,031

Six Months Ended 
 June 30, 2013
Rate
reduction
 
Term
extension
 
Rate reduction
and term
extension
 
Total
Commercial real estate
$
3,809

 
$
2,368

 
$
21,500

 
$
27,677

Construction
—

 
—

 
—

 
—

Residential real estate
—

 
—

 
—

 
—

Commercial and industrial
174

 
103

 
—

 
277

Consumer
—

 
—

 
—

 
—

 
$
3,983

 
$
2,471

 
$
21,500

 
$
27,954

Six Months Ended 
 June 30, 2012
Rate
reduction
 
Term
extension
 
Rate reduction
and term
extension
 
Total
Commercial real estate
$
1,295

 
$
434

 
$
—

 
$
1,729

Construction
—

 
4,425

 
—

 
4,425

Residential real estate
—

 
310

 
—

 
310

Commercial and industrial
89

 
339

 
153

 
581

Consumer
—

 
310

 
—

 
310

 
$
1,384

 
$
5,818

 
$
153

 
$
7,355


The following table presents, by portfolio segment, the TDRs which had payment defaults during the six months ended June 30, 2013 and 2012 that had been previously restructured within the last twelve months prior to June 30, 2013 and 2012: 
 
Six months ended June 30,
 
2013
 
2012
 
Number of
loans
 
TDRs restructured in the
period with a payment
default
 
Number
of loans
 
TDRs restructured in the
period with a payment
default
Commercial real estate
2

 
$
3,500

 
—

 
$
—

Construction
—

 
—

 
—

 
—

Residential real estate
—

 
—

 
—

 
—

Commercial and industrial loans
—

 
—

 
—

 
—

Consumer loans
—

 
—

 
1

 
3

 
2

 
$
3,500

 
1

 
$
3

The following table presents, by portfolio segment, information with respect to the Company’s loans that were modified and recorded as TDRs during the three and six months ended June 30, 2013 and 2012 (dollars in thousands):
 
Three months ended June 30,
 
2013
 
2012
 
Number of
loans
 
TDR outstanding
recorded investment
 
Number of
loans
 
TDR outstanding
recorded investment
Commercial real estate
—

 
$
—

 
1

 
$
132

Construction
—

 
—

 
1

 
4,425

Residential real estate
—

 
—

 
3

 
83

Commercial and industrial
1

 
3

 
3

 
240

Consumer
—

 
—

 
18

 
151

 
1

 
$
3

 
26

 
$
5,031

 
Six months ended June 30,
 
2013
 
2012
 
Number of
loans
 
TDR outstanding
recorded investment
 
Number of
loans
 
TDR outstanding
recorded investment
Commercial real estate
5

 
$
27,677

 
4

 
$
1,729

Construction
—

 
—

 
1

 
4,425

Residential real estate
—

 
—

 
7

 
310

Commercial and industrial
4

 
277

 
9

 
581

Consumer
—

 
—

 
33

 
310

 
9

 
$
27,954

 
54

 
$
7,355