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Loans Receivable (Tables)
 9 Months Ended
Sep. 30, 2012
Loans Receivable [Abstract]  
Loans receivable
Loans receivable consist of the following:
 
September 30
 
 
December 31
 
 
2012
 
 
2011
 
 
(dollars in thousands)
 
 
 
 
 
 
 
Residential mortgage, total
 
$
279,163
 
 
$
295,876
 
  Individually evaluated for impairment
 
 
51,469
 
 
 
51,007
 
  Collectively evaluated for impairment
 
 
227,694
 
 
 
244,869
 
Construction, land acquisition and   development, total
 
 
75,274
 
 
 
99,122
 
  Individually evaluated for impairment
 
 
15,004
 
 
 
35,398
 
  Collectively evaluated for impairment
 
 
60,270
 
 
 
63,724
 
Land, total
 
 
54,863
 
 
 
59,649
 
  Individually evaluated for impairment
 
 
9,554
 
 
 
11,384
 
  Collectively evaluated for impairment
 
 
45,309
 
 
 
48,265
 
Lines of credit, total
 
 
30,455
 
 
 
34,278
 
  Individually evaluated for impairment
 
 
3,039
 
 
 
5,735
 
  Collectively evaluated for impairment
 
 
27,416
 
 
 
28,543
 
Commercial real estate, total
 
 
218,231
 
 
 
203,010
 
  Individually evaluated for impairment
 
 
13,631
 
 
 
24,354
 
  Collectively evaluated for impairment
 
 
204,600
 
 
 
178,656
 
Commercial non-real estate, total
 
 
6,212
 
 
 
5,599
 
  Individually evaluated for impairment
 
 
1,869
 
 
 
32
 
  Collectively evaluated for impairment
 
 
4,343
 
 
 
5,567
 
Home equity, total
 
 
37,626
 
 
 
41,309
 
  Individually evaluated for impairment
 
 
3,515
 
 
 
2,340
 
  Collectively evaluated for impairment
 
 
34,111
 
 
 
38,969
 
Consumer, total
 
 
758
 
 
 
897
 
  Individually evaluated for impairment
 
 
56
 
 
 
24
 
  Collectively evaluated for impairment
 
 
702
 
 
 
873
 
Total Loans
 
 
702,582
 
 
 
739,740
 
  Individually evaluated for impairment
 
 
98,137
 
 
 
130,274
 
  Collectively evaluated for impairment
 
 
604,445
 
 
 
609,466
 
Less
 
 
 
 
 
 
 
 
     Loans in process
 
 
(12,091
)
 
 
(18,014
)
     Allowance for loan losses
 
 
(23,180
)
 
 
(25,938
)
     Deferred loan origination fees and costs, net
 
 
(2,086
)
 
 
(2,485
)
 
$
665,225
 
 
$
693,303
 
Allowance for loan losses
The following is a summary of the allowance for loan losses for the nine and three month periods ended September 30, 2012 (dollars in thousands):

 
 
Total
 
 
Residential Mortgage
 
 
Acquisition and Development
 
 
 
Land
 
 
Lines of Credit
 
 
Commercial Real Estate
 
 
Commercial Non-Real Estate
 
 
Home Equity
 
 
 
Consumer
 
Nine months September 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
 
$
25,938
 
 
$
12,303
 
 
$
3,916
 
 
$
2,405
 
 
$
725
 
 
$
4,157
 
 
$
169
 
 
$
2,257
 
 
$
6
 
Provision
 
 
465
 
 
 
544
 
 
 
(1,656
)
 
 
1,724
 
 
 
(503
)
 
 
(465
)
 
 
894
 
 
 
(88
)
 
 
15
 
Charge-offs
 
 
(3,333
)
 
 
(1,646
)
 
 
(784
)
 
 
(709
)
 
 
-
 
 
 
(194
)
 
 
-
 
 
 
-
 
 
 
-
 
Recoveries
 
 
110
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
110
 
 
 
-
 
 
 
-
 
Ending Balance
 
$
23,180
 
 
$
11,201
 
 
$
1,476
 
 
$
3,420
 
 
$
222
 
 
$
3,498
 
 
$
1,173
 
 
$
2,169
 
 
$
21
 
Ending balance related to:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans individually evaluated for impairment
 
$
11,730
 
 
$
5,261
 
 
$
1,020
 
 
$
 1,487
 
 
$
177
 
 
$
548
 
 
$
1,103
 
 
$
2,114
 
 
$
20
 
Loans collectively evaluated for impairment
 
$
11,450
 
 
$
5,940
 
 
$
456
 
 
$
1,933
 
 
$
45
 
 
$
2,950
 
 
$
70
 
 
$
55
 
 
$
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months September 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
 
$
24,097
 
 
$
11,662
 
 
$
1,962
 
 
$
4,536
 
 
$
239
 
 
$
3,344
 
 
$
198
 
 
$
2,134
 
 
$
22
 
Provision
 
 
-
 
 
 
(259
)
 
 
(164
)
 
 
(723
)
 
 
(17
)
 
 
154
 
 
 
975
 
 
 
35
 
 
 
(1
)
Charge-offs
 
 
(917
)
 
 
(202
)
 
 
(322
)
 
 
(393
)
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Recoveries
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Ending Balance
 
$
23,180
 
 
$
11,201
 
 
$
1,476
 
 
$
3,420
 
 
$
222
 
 
$
3,498
 
 
$
1,173
 
 
$
2,169
 
 
$
21
 

The following is a summary of the allowance for loan losses for the nine and three month periods ended September 30, 2011 (dollars in thousands):

 
 
Total
 
 
Residential Mortgage
 
 
Acquisition and Development
 
 
 
Land
 
 
Lines of Credit
 
 
Commercial Real Estate
 
 
Commercial Non-Real Estate
 
 
Home Equity
 
 
 
Consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months September 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
 
$
29,871
 
 
$
16,339
 
 
$
3,997
 
 
$
4,225
 
 
$
458
 
 
$
3,949
 
 
$
131
 
 
$
762
 
 
$
10
 
Provision
 
 
4,471
 
 
 
(900
)
 
 
3,436
 
 
 
(760
)
 
 
(52
)
 
 
871
 
 
 
691
 
 
 
443
 
 
 
742
 
Charge-offs
 
 
(3,984
)
 
 
(1,921
)
 
 
(741
)
 
 
(811
)
 
 
-
 
 
 
(497
)
 
 
-
 
 
 
(12
)
 
 
(2
)
Recoveries
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Ending Balance
 
$
30,358
 
 
$
13,518
 
 
$
6,692
 
 
$
2,654
 
 
$
406
 
 
$
4,323
 
 
$
822
 
 
$
1,193
 
 
$
750
 
Ending balance related to:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans individually evaluated for impairment
 
$
14,542
 
 
$
6,514
 
 
$
 3,532
 
 
$
1,600
 
 
$
150
 
 
$
1,055
 
 
$
159
 
 
$
791
 
 
$
741
 
Loans collectively evaluated for impairment
 
$
15,816
 
 
$
7,004
 
 
$
3,160
 
 
$
1,054
 
 
$
256
 
 
$
3,268
 
 
$
663
 
 
$
402
 
 
$
9
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months September 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
 
$
31,103
 
 
$
13,394
 
 
$
6,868
 
 
$
3,679
 
 
$
395
 
 
$
4,298
 
 
$
391
 
 
$
1,325
 
 
$
753
 
Provision
 
 
850
 
 
 
512
 
 
 
(23
)
 
 
(431
)
 
 
11
 
 
 
485
 
 
 
431
 
 
 
(132
)
 
 
(3
)
Charge-offs
 
 
(1,595
)
 
 
(388
)
 
 
(153
)
 
 
(594
)
 
 
-
 
 
 
(460
)
 
 
-
 
 
 
-
 
 
 
-
 
Recoveries
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Ending Balance
 
$
30,358
 
 
$
13,518
 
 
$
6,692
 
 
$
2,654
 
 
$
406
 
 
$
4,323
 
 
$
822
 
 
$
1,193
 
 
$
750
 
Non-performing assets
The following table presents Bancorp's non-performing assets as of September 30, 2012 and December 31, 2011 (dollars in thousands):
 
 
September 30,
 2012
 
 
Number of loans
 
 
December 31, 2011
 
 
Number of loans
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans accounted for on a non-accrual basis:
 
 
 
 
 
 
 
 
 
 
 
 
    Residential  mortgage
 
$
14,028
 
 
 
44
 
 
$
8,912
 
 
 
25
 
    Acquisition and development
 
 
1,004
 
 
 
3
 
 
 
10,997
 
 
 
11
 
    Land
 
 
6,020
 
 
 
8
 
 
 
6,813
 
 
 
14
 
    Lines of credit
 
 
2,306
 
 
 
5
 
 
 
2,019
 
 
 
4
 
    Commercial real estate
 
 
4,430
 
 
 
8
 
 
 
2,140
 
 
 
5
 
    Commercial non-real estate
 
 
140
 
 
 
3
 
 
 
5
 
 
 
1
 
    Home equity
 
 
2,048
 
 
 
11
 
 
 
343
 
 
 
3
 
    Consumer
 
 
46
 
 
 
3
 
 
 
203
 
 
 
4
 
Total non-accrual loans, excluding troubled debt restructures
 
$
30,022
 
 
 
85
 
 
$
31,432
 
 
 
67
 
Accruing loans greater than 90 days past due
 
$
-
 
 
 
 
 
 
$
-
 
 
 
 
 
Nonaccrual troubled debt restructures
 
$
12,574
 
 
 
35
 
 
$
19,351
 
 
 
38
 
Foreclosed real-estate
 
$
13,801
 
 
 
 
 
 
$
19,932
 
 
 
 
 
Total non-performing assets
 
$
56,397
 
 
 
 
 
 
$
70,715
 
 
 
 
 
Accruing troubled debt restructures
 
$
51,230
 
 
 
106
 
 
$
40,424
 
 
 
77
 
Total non-accrual loans to net loans
 
 
6.4
%
 
 
 
 
 
 
7.3
%
 
 
 
 
Allowance for loan losses
 
$
23,180
 
 
 
 
 
 
$
25,938
 
 
 
 
 
Allowance to total loans
 
 
3.4
%
 
 
 
 
 
 
3.6
%
 
 
 
 
Allowance for loan losses to total non-performing loans, including loans contractually past due 90 days or more
 
 
54.4
%
 
 
 
 
 
 
51.1
%
 
 
 
 
Total non-accrual and accruing loans greater than 90 days past due to total assets
 
 
4.9
%
 
 
 
 
 
 
5.6
%
 
 
 
 
Total non-performing assets to total assets
 
 
6.5
%
 
 
 
 
 
 
7.9
%
 
 
 
 
Impaired loans
The following tables summarize impaired loans at September 30, 2012 and December 31, 2011 (dollars in thousands):

 
 
Impaired Loans with
 Specific Allowance
 
 
Impaired Loans with No Specific Allowance
 
 
 
 
Total Impaired Loans
 
 
Recorded Investment
 
 
Related Allowance
 
 
Recorded Investment
 
 
Recorded Investment
 
 
Unpaid Principal Balance
 
September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Residential mortgage
 
$
23,221
 
 
$
5,261
 
 
$
28,248
 
 
$
51,469
 
 
$
53,233
 
  Acquisition and development
 
 
3,683
 
 
 
1,020
 
 
 
11,321
 
 
 
15,004
 
 
 
15,004
 
  Land
 
 
3,031
 
 
 
1,487
 
 
 
6,523
 
 
 
9,554
 
 
 
11,226
 
  Lines of credit
 
 
445
 
 
 
177
 
 
 
2,594
 
 
 
3,039
 
 
 
3,039
 
  Commercial real estate
 
 
3,638
 
 
 
548
 
 
 
9,993
 
 
 
13,631
 
 
 
13,631
 
  Commercial non-real estate
 
 
1,869
 
 
 
1,103
 
 
 
-
 
 
 
1,869
 
 
 
1,869
 
  Home equity
 
 
2,666
 
 
 
2,114
 
 
 
849
 
 
 
3,515
 
 
 
3,515
 
  Consumer
 
 
20
 
 
 
20
 
 
 
36
 
 
 
56
 
 
 
56
 
     Total impaired loans
 
$
38,573
 
 
$
11,730
 
 
$
59,564
 
 
$
98,137
 
 
$
101,573
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired Loans with
 Specific Allowance
 
 
Impaired Loans with No Specific Allowance
 
 
 
 
Total Impaired Loans
 
 
Recorded Investment
 
 
Related Allowance
 
 
Recorded Investment
 
 
Recorded Investment
 
 
Unpaid Principal Balance
 
December 31, 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Residential mortgage
 
$
26,736
 
 
$
5,509
 
 
$
24,271
 
 
$
51,007
 
 
$
51,704
 
  Acquisition and development
 
 
18,023
 
 
 
2,624
 
 
 
17,375
 
 
 
35,398
 
 
 
36,261
 
  Land
 
 
2,850
 
 
 
1,365
 
 
 
8,534
 
 
 
11,384
 
 
 
12,819
 
  Lines of credit
 
 
1,548
 
 
 
510
 
 
 
4,187
 
 
 
5,735
 
 
 
5,735
 
  Commercial real estate
 
 
4,694
 
 
 
960
 
 
 
19,660
 
 
 
24,354
 
 
 
24,354
 
  Commercial non-real estate
 
 
28
 
 
 
28
 
 
 
4
 
 
 
32
 
 
 
32
 
  Home equity
 
 
2,170
 
 
 
1,998
 
 
 
170
 
 
 
2,340
 
 
 
2,340
 
  Consumer
 
 
-
 
 
 
-
 
 
 
24
 
 
 
24
 
 
 
24
 
     Total impaired loans
 
$
56,049
 
 
$
12,994
 
 
$
74,225
 
 
$
130,274
 
 
$
133,269
 

The following tables summarize average impaired loans for the nine and three month periods ended September 30, 2012 and 2011 (dollars in thousands):

 
Impaired Loans with
Specific Allowance
 
 
Impaired Loans with No
Specific Allowance
 
 
Total Impaired Loans
 
 
Average
Recorded
Investment
 
 
Interest
Income
Recognized
 
 
Average
Recorded
Investment
 
 
Interest
Income
Recognized
 
 
Average
Recorded
Investment
 
 
Interest
Income
Recognized
 
Nine months September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Residential mortgage
 
$
23,294
 
 
$
638
 
 
$
28,355
 
 
$
810
 
 
$
51,649
 
 
$
1,448
 
  Acquisition and development
 
 
4,309
 
 
 
72
 
 
 
12,310
 
 
 
441
 
 
 
16,619
 
 
 
513
 
  Land
 
 
3,043
 
 
 
100
 
 
 
6,659
 
 
 
121
 
 
 
9,702
 
 
 
221
 
  Lines of credit
 
 
441
 
 
 
6
 
 
 
2,951
 
 
 
48
 
 
 
3,392
 
 
 
54
 
  Commercial real estate
 
 
3,653
 
 
 
120
 
 
 
9,654
 
 
 
333
 
 
 
13,307
 
 
 
453
 
  Commercial non-real estate
 
 
1,870
 
 
 
67
 
 
 
-
 
 
 
-
 
 
 
1,870
 
 
 
67
 
  Home equity
 
 
2,666
 
 
 
55
 
 
 
850
 
 
 
13
 
 
 
3,516
 
 
 
68
 
  Consumer
 
 
20
 
 
 
-
 
 
 
36
 
 
 
-
 
 
 
56
 
 
 
-
 
    Total impaired loans
 
$
39,296
 
 
$
1,058
 
 
$
60,815
 
 
$
1,766
 
 
$
100,111
 
 
$
2,824
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired Loans with
Specific Allowance
 
 
Impaired Loans with No
Specific Allowance
 
 
Total Impaired Loans
 
 
Average
Recorded
Investment
 
 
Interest
Income
Recognized
 
 
Average
Recorded
Investment
 
 
Interest
Income
Recognized
 
 
Average
Recorded
Investment
 
 
Interest
Income
Recognized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Residential mortgage
 
$
23,233
 
 
$
170
 
 
$
28,270
 
 
$
243
 
 
$
51,503
 
 
$
413
 
  Acquisition and development
 
 
4,191
 
 
 
20
 
 
 
11,690
 
 
 
143
 
 
 
15,881
 
 
 
163
 
  Land
 
 
3,033
 
 
 
28
 
 
 
6,716
 
 
 
33
 
 
 
9,749
 
 
 
61
 
  Lines of credit
 
 
445
 
 
 
1
 
 
 
2,951
 
 
 
12
 
 
 
3,396
 
 
 
13
 
  Commercial real estate
 
 
3,641
 
 
 
32
 
 
 
9,607
 
 
 
119
 
 
 
13,248
 
 
 
151
 
  Commercial non-real estate
 
 
1,869
 
 
 
23
 
 
 
-
 
 
 
-
 
 
 
1,869
 
 
 
23
 
  Home equity
 
 
2,666
 
 
 
21
 
 
 
850
 
 
 
2
 
 
 
3,516
 
 
 
23
 
  Consumer
 
 
20
 
 
 
-
 
 
 
36
 
 
 
-
 
 
 
56
 
 
 
-
 
    Total impaired loans
 
$
39,098
 
 
$
295
 
 
$
60,120
 
 
$
552
 
 
$
99,218
 
 
$
847
 
 
 
Impaired Loans with
Specific Allowance
 
 
Impaired Loans with No
Specific Allowance
 
 
Total Impaired Loans
 
 
Average
Recorded
Investment
 
 
Interest
Income
Recognized
 
 
Average
Recorded
Investment
 
 
Interest
Income
Recognized
 
 
Average
Recorded
Investment
 
 
Interest
Income
Recognized
 
Nine months September 30, 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Residential mortgage
 
$
31,215
 
 
$
723
 
 
$
17,996
 
 
$
587
 
 
$
49,211
 
 
$
1,310
 
  Acquisition and development
 
 
22,014
 
 
 
674
 
 
 
9,126
 
 
 
216
 
 
 
31,140
 
 
 
890
 
  Land
 
 
3,637
 
 
 
141
 
 
 
5,415
 
 
 
94
 
 
 
9,052
 
 
 
235
 
  Lines of credit
 
 
604
 
 
 
23
 
 
 
2,597
 
 
 
43
 
 
 
3,201
 
 
 
66
 
  Commercial real estate
 
 
4,318
 
 
 
152
 
 
 
15,576
 
 
 
712
 
 
 
19,894
 
 
 
864
 
  Commercial non-real estate
 
 
177
 
 
 
-
 
 
 
311
 
 
 
16
 
 
 
488
 
 
 
16
 
  Home equity
 
 
888
 
 
 
17
 
 
 
199
 
 
 
4
 
 
 
1,087
 
 
 
21
 
  Consumer
 
 
826
 
 
 
-
 
 
 
98
 
 
 
-
 
 
 
924
 
 
 
-
 
    Total impaired loans
 
$
63,679
 
 
$
1,730
 
 
$
51,318
 
 
$
1,672
 
 
$
114,997
 
 
$
3,402
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired Loans with
Specific Allowance
 
 
Impaired Loans with No
Specific Allowance
 
 
Total Impaired Loans
 
 
Average
Recorded
Investment
 
 
Interest
Income
Recognized
 
 
Average
Recorded
Investment
 
 
Interest
Income
Recognized
 
 
Average
Recorded
Investment
 
 
Interest
Income
Recognized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months  September 30, 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Residential mortgage
 
$
31,094
 
 
$
159
 
 
$
17,810
 
 
$
178
 
 
$
48,904
 
 
$
337
 
  Acquisition and development
 
 
21,560
 
 
 
179
 
 
 
8,986
 
 
 
68
 
 
 
30,546
 
 
 
247
 
  Land
 
 
3,627
 
 
 
36
 
 
 
5,414
 
 
 
17
 
 
 
9,041
 
 
 
53
 
  Lines of credit
 
 
604
 
 
 
5
 
 
 
2,597
 
 
 
15
 
 
 
3,201
 
 
 
20
 
  Commercial real estate
 
 
4,301
 
 
 
45
 
 
 
15,503
 
 
 
225
 
 
 
19,804
 
 
 
270
 
  Commercial non-real estate
 
 
177
 
 
 
-
 
 
 
311
 
 
 
-
 
 
 
488
 
 
 
-
 
  Home equity
 
 
888
 
 
 
4
 
 
 
199
 
 
 
1
 
 
 
1,087
 
 
 
5
 
  Consumer
 
 
826
 
 
 
-
 
 
 
98
 
 
 
-
 
 
 
924
 
 
 
-
 
    Total impaired loans
 
$
63,077
 
 
$
428
 
 
$
50,918
 
 
$
504
 
 
$
113,995
 
 
$
932
 
 
Schedule of changes in impaired loans
Changes in impaired loans during the three and nine months ended September 30, 2012 were as follows (dollars in thousands):

 
 
 
 
 
 
For the three
 months ended
September 30, 2012
 
 
For the nine
months ended
September 30, 2012
 
 
 
 
 
 
 
 
Impaired loans at beginning of period
 
$
90,828
 
 
$
130,274
 
     Added to impaired loans
 
 
12,155
 
 
 
22,720
 
     Gross loans transferred to foreclosed real estate
 
 
(2,872
)
 
 
(13,642
)
     Transferred out of impaired loans
 
 
(1,974
)
 
 
(41,215
)
Impaired loans at September 30, 2012
 
$
98,137
 
 
$
98,137
 
Classes of the loan portfolio
The following table presents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of September 30, 2012 and December 31, 2011 (dollars in thousands):

 
Pass
 
 
Special Mention
 
 
Substandard
 
 
Doubtful
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Residential mortgage
 
$
234,694
 
 
$
11,070
 
 
$
33,145
 
 
$
254
 
 
$
279,163
 
  Acquisition and development
 
 
43,907
 
 
 
9,717
 
 
 
21,650
 
 
 
-
 
 
 
75,274
 
  Land
 
 
40,525
 
 
 
6,240
 
 
 
8,098
 
 
 
-
 
 
 
54,863
 
  Lines of credit
 
 
23,906
 
 
 
1,708
 
 
 
4,841
 
 
 
-
 
 
 
30,455
 
  Commercial real estate
 
 
197,411
 
 
 
6,580
 
 
 
14,136
 
 
 
104
 
 
 
218,231
 
  Commercial non-real estate
 
 
4,311
 
 
 
-
 
 
 
1,875
 
 
 
26
 
 
 
6,212
 
  Home equity
 
 
33,557
 
 
 
681
 
 
 
3,388
 
 
 
-
 
 
 
37,626
 
  Consumer
 
 
703
 
 
 
-
 
 
 
12
 
 
 
43
 
 
 
758
 
    Total loans
 
$
579,014
 
 
$
35,996
 
 
$
87,145
 
 
$
427
 
 
$
702,582
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass
 
 
Special Mention
 
 
Substandard
 
 
Doubtful
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Residential mortgage
 
$
259,359
 
 
$
8,624
 
 
$
27,689
 
 
$
204
 
 
$
295,876
 
  Acquisition and development
 
 
62,054
 
 
 
6,521
 
 
 
30,547
 
 
 
-
 
 
 
99,122
 
  Land
 
 
44,443
 
 
 
4,909
 
 
 
10,297
 
 
 
-
 
 
 
59,649
 
  Lines of credit
 
 
27,067
 
 
 
1,708
 
 
 
5,503
 
 
 
-
 
 
 
34,278
 
  Commercial real estate
 
 
180,635
 
 
 
10,702
 
 
 
11,673
 
 
 
-
 
 
 
203,010
 
  Commercial non-real estate
 
 
5,567
 
 
 
-
 
 
 
4
 
 
 
28
 
 
 
5,599
 
  Home equity
 
 
38,456
 
 
 
712
 
 
 
2,141
 
 
 
-
 
 
 
41,309
 
  Consumer
 
 
874
 
 
 
-
 
 
 
23
 
 
 
-
 
 
 
897
 
    Total loans
 
$
618,455
 
 
$
33,176
 
 
$
87,877
 
 
$
232
 
 
$
739,740
 
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due.  The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of September 30, 2012 and December 31, 2011 (dollars in thousands):

 
Current
 
 
30-59
Days Past Due
 
 
60-89
Days Past Due
 
 
90
Days+
Past Due
 
 
Total
Past Due
 
 
Non-
Accrual
 
 
Total Loans
 
September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Residential mortgage
 
$
240,041
 
 
$
12,322
 
 
$
7,641
 
 
$
-
 
 
$
19,963
 
 
$
19,159
 
 
$
279,163
 
  Acquisition and development
 
 
70,618
 
 
 
1,262
 
 
 
-
 
 
 
-
 
 
 
1,262
 
 
 
3,394
 
 
 
75,274
 
  Land
 
 
45,293
 
 
 
2,189
 
 
 
-
 
 
 
-
 
 
 
2,189
 
 
 
7,381
 
 
 
54,863
 
  Lines of credit
 
 
27,628
 
 
 
249
 
 
 
-
 
 
 
-
 
 
 
249
 
 
 
2,578
 
 
 
30,455
 
  Commercial real estate
 
 
207,219
 
 
 
2,406
 
 
 
855
 
 
 
-
 
 
 
3,261
 
 
 
7,751
 
 
 
218,231
 
  Commercial non-real estate
 
 
6,068
 
 
 
4
 
 
 
-
 
 
 
-
 
 
 
4
 
 
 
140
 
 
 
6,212
 
  Home equity
 
 
34,987
 
 
 
371
 
 
 
120
 
 
 
-
 
 
 
491
 
 
 
2,148
 
 
 
37,626
 
  Consumer
 
 
713
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
45
 
 
 
758
 
    Total loans
 
$
632,567
 
 
$
18,803
 
 
$
8,616
 
 
$
-
 
 
$
27,419
 
 
$
42,596
 
 
$
702,582
 
 
 
 
Current
 
 
30-59
Days Past Due
 
 
60-89
Days Past Due
 
 
90
Days+
Past Due
 
 
Total
Past Due
 
 
Non-
Accrual
 
 
Total Loans
 
December 31, 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Residential mortgage
 
$
261,005
 
 
$
9,696
 
 
$
4,725
 
 
$
-
 
 
$
14,421
 
 
$
20,450
 
 
$
295,876
 
  Acquisition and development
 
 
87,369
 
 
 
369
 
 
 
-
 
 
 
-
 
 
 
369
 
 
 
11,384
 
 
 
99,122
 
  Land
 
 
49,163
 
 
 
1,517
 
 
 
225
 
 
 
-
 
 
 
1,742
 
 
 
8,744
 
 
 
59,649
 
  Lines of credit
 
 
31,889
 
 
 
-
 
 
 
38
 
 
 
-
 
 
 
38
 
 
 
2,351
 
 
 
34,278
 
  Commercial real estate
 
 
192,886
 
 
 
2,535
 
 
 
286
 
 
 
-
 
 
 
2,821
 
 
 
7,303
 
 
 
203,010
 
  Commercial non-real estate
 
 
5,584
 
 
 
10
 
 
 
-
 
 
 
-
 
 
 
10
 
 
 
5
 
 
 
5,599
 
  Home equity
 
 
40,021
 
 
 
945
 
 
 
-
 
 
 
-
 
 
 
945
 
 
 
343
 
 
 
41,309
 
  Consumer
 
 
694
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
203
 
 
 
897
 
    Total loans
 
$
668,611
 
 
$
15,072
 
 
$
5,274
 
 
$
-
 
 
$
20,346
 
 
$
50,783
 
 
$
739,740
 
Troubled debt restructurings
The following tables summarize troubled debt restructurings at September 30, 2012 and December 31, 2011 (dollars in thousands):

September 30, 2012
 
 
Number of
Contracts
 
 
Pre-Modification
Outstanding
Recorded
Investment
 
 
Post-Modification
Outstanding Recorded
Investment
 
Troubled Debt Restructurings:
 
 
 
 
 
 
 
 
 
  Residential mortgage
 
 
79
 
 
$
31,884
 
 
$
29,877
 
  Acquisition and development
 
 
8
 
 
 
13,214
 
 
 
11,595
 
  Land
 
 
16
 
 
 
5,929
 
 
 
5,215
 
  Lines of credit
 
 
4
 
 
 
593
 
 
 
593
 
  Commercial real estate
 
 
12
 
 
 
15,359
 
 
 
8,696
 
  Commercial non-real estate
 
 
-
 
 
 
-
 
 
 
-
 
  Home equity
 
 
1
 
 
 
100
 
 
 
100
 
  Consumer
 
 
-
 
 
 
-
 
 
 
-
 
    Total loans
 
 
120
 
 
$
67,079
 
 
$
56,076
 

 
 
Number of
Contracts
 
 
Pre-Modification
Outstanding
Recorded
Investment
 
 
Post-Modification
Outstanding Recorded
Investment
 
Troubled Debt Restructurings That Subsequently Defaulted:
 
 
 
 
 
 
 
 
 
  Residential mortgage
 
 
17
 
 
$
5,447
 
 
$
5,316
 
  Acquisition and development
 
 
1
 
 
 
1,830
 
 
 
1,830
 
  Land
 
 
2
 
 
 
455
 
 
 
442
 
  Lines of credit
 
 
1
 
 
 
140
 
 
 
140
 
  Commercial real estate
 
 
-
 
 
 
-
 
 
 
-
 
  Commercial non-real estate
 
 
-
 
 
 
-
 
 
 
-
 
  Home equity
 
 
-
 
 
 
-
 
 
 
-
 
  Consumer
 
 
-
 
 
 
-
 
 
 
-
 
    Total loans
 
 
21
 
 
$
7,872
 
 
$
7,728
 
 
December 31, 2011
 
 
Number of
Contracts
 
 
Pre-Modification
Outstanding
Recorded
Investment
 
 
Post-Modification
Outstanding Recorded
Investment
 
Troubled Debt Restructurings:
 
 
 
 
 
 
 
 
 
  Residential mortgage
 
 
68
 
 
$
30,372
 
 
$
29,815
 
  Acquisition and development
 
 
8
 
 
 
11,152
 
 
 
10,260
 
  Land
 
 
9
 
 
 
3,985
 
 
 
3,802
 
  Lines of credit
 
 
2
 
 
 
332
 
 
 
332
 
  Commercial real estate
 
 
8
 
 
 
8,215
 
 
 
8,046
 
  Commercial non-real estate
 
 
-
 
 
 
-
 
 
 
-
 
  Home equity
 
 
-
 
 
 
-
 
 
 
-
 
  Consumer
 
 
-
 
 
 
-
 
 
 
-
 
    Total loans
 
 
95
 
 
$
54,056
 
 
$
52,255
 

 
 
Number of
Contracts
 
 
Pre-Modification
Outstanding
Recorded
Investment
 
 
Post-Modification
Outstanding Recorded
Investment
 
Troubled Debt Restructurings That
Subsequently Defaulted:
 
 
 
 
 
 
 
 
 
  Residential mortgage
 
 
14
 
 
$
4,568
 
 
$
4,542
 
  Acquisition and development
 
 
1
 
 
 
2,090
 
 
 
2,090
 
  Land
 
 
3
 
 
 
464
 
 
 
462
 
  Lines of credit
 
 
1
 
 
 
140
 
 
 
140
 
  Commercial real estate
 
 
1
 
 
 
288
 
 
 
286
 
  Commercial non-real estate
 
 
-
 
 
 
-
 
 
 
-
 
  Home equity
 
 
-
 
 
 
-
 
 
 
-
 
  Consumer
 
 
-
 
 
 
-
 
 
 
-
 
    Total loans
 
 
20
 
 
$
7,550
 
 
$
7,520
 
Newly restructured loans during the period
The following tables present newly restructured loans that occurred during the nine and three months ended September 30, 2012 (dollars in thousands):
 
 
Nine months ended September 30, 2012
 
 
Term Modification
 
 
Contracts
 
 
Combination Modifications
 
 
Contracts
 
 
Total
 
 
Total Contracts
 
Pre-Modification Outstanding Recorded Investment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Residential mortgage
 
$
659
 
 
 
3
 
 
$
6,347
 
 
 
17
 
 
$
7,006
 
 
 
20
 
  Acquisition and development
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
  Land
 
 
176
 
 
 
1
 
 
 
816
 
 
 
4
 
 
 
992
 
 
 
5
 
  Lines of credit
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
  Commercial real estate
 
 
704
 
 
 
3
 
 
 
13,074
 
 
 
3
 
 
 
13,778
 
 
 
6
 
  Commercial non-real estate
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
  Home equity
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
  Consumer
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
    Total loans
 
$
1,539
 
 
 
7
 
 
$
20,237
 
 
 
24
 
 
$
21,776
 
 
 
31
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Post-Modification Outstanding Recorded Investment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Residential mortgage
 
$
657
 
 
 
3
 
 
$
6,215
 
 
 
17
 
 
$
6,872
 
 
 
20
 
  Acquisition and development
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
  Land
 
 
176
 
 
 
1
 
 
 
809
 
 
 
4
 
 
 
985
 
 
 
5
 
  Lines of credit
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
  Commercial real estate
 
 
689
 
 
 
3
 
 
 
6,530
 
 
 
3
 
 
 
7,219
 
 
 
6
 
  Commercial non-real estate
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
  Home equity
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
  Consumer
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
    Total loans
 
$
1,522
 
 
 
7
 
 
$
13,554
 
 
 
24
 
 
$
15,076
 
 
 
31
 

In addition, the collateral securing the TDR, which is always real estate, is evaluated for impairment based on either an appraisal or broker price opinion.  If the borrower performs under the terms of the modification, and the ultimate collectability of all amounts contractually due under the modified terms is not in doubt, the loan is returned to accrual status.  There are no loans that have been modified due to the financial difficulties of the borrower that are not considered a TDR.
 
 
Three months ended September 30, 2012
 
 
Term Modification
 
 
Contracts
 
 
Combination Modifications
 
 
Contracts
 
 
Total
 
 
Total Contracts
 
Pre-Modification Outstanding Recorded Investment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Residential mortgage
 
$
-
 
 
 
-
 
 
$
258
 
 
 
2
 
 
$
258
 
 
 
2
 
  Acquisition and development
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
  Land
 
 
-
 
 
 
-
 
 
 
282
 
 
 
1
 
 
 
282
 
 
 
1
 
  Lines of credit
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
  Commercial real estate
 
 
-
 
 
 
-
 
 
 
13,074
 
 
 
3
 
 
 
13,074
 
 
 
3
 
  Commercial non-real estate
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
  Home equity
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
  Consumer
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
    Total loans
 
$
-
 
 
 
-
 
 
$
13,614
 
 
 
6
 
 
$
13,614
 
 
 
6
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Post-Modification Outstanding Recorded Investment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Residential mortgage
 
$
-
 
 
 
-
 
 
$
258
 
 
 
2
 
 
$
258
 
 
 
2
 
  Acquisition and development
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
  Land
 
 
-
 
 
 
-
 
 
 
282
 
 
 
1
 
 
 
282
 
 
 
1
 
  Lines of credit
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
  Commercial real estate
 
 
-
 
 
 
-
 
 
 
6,530
 
 
 
3
 
 
 
6,530
 
 
 
3
 
  Commercial non-real estate
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
  Home equity
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
  Consumer
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
    Total loans
 
$
-
 
 
 
-
 
 
$
7,070
 
 
 
6
 
 
$
7,070
 
 
 
6
 
Methods used to account for interest on TDRs
Interest on TDRs was accounted for under the following methods as of September 30, 2012 and December 31, 2011 (dollars in thousands):
 
 
Number of
Contracts
 
 
Accrual Status
 
 
Number of Contracts
 
 
Non-Accrual Status
 
 
Total
Number of
Contracts
 
 
Total
Modifications
 
September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Residential mortgage
 
 
79
 
 
$
30,062
 
 
 
17
 
 
$
5,131
 
 
 
96
 
 
$
35,193
 
  Acquisition and development
 
 
5
 
 
 
11,035
 
 
 
4
 
 
 
2,390
 
 
 
9
 
 
 
13,425
 
  Land
 
 
12
 
 
 
4,296
 
 
 
6
 
 
 
1,361
 
 
 
18
 
 
 
5,657
 
  Lines of credit
 
 
3
 
 
 
462
 
 
 
2
 
 
 
272
 
 
 
5
 
 
 
734
 
  Commercial real estate
 
 
7
 
 
 
5,375
 
 
 
5
 
 
 
3,320
 
 
 
12
 
 
 
8,695
 
  Commercial non-real estate
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
  Home equity
 
 
-
 
 
 
-
 
 
 
1
 
 
 
100
 
 
 
1
 
 
 
100
 
  Consumer
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
    Total loans
 
 
106
 
 
$
51,230
 
 
 
35
 
 
$
12,574
 
 
 
141
 
 
$
63,804
 
December 31, 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Residential mortgage
 
 
57
 
 
$
22,820
 
 
 
25
 
 
$
11,537
 
 
 
82
 
 
$
34,357
 
  Acquisition and development
 
 
8
 
 
 
11,962
 
 
 
1
 
 
 
388
 
 
 
9
 
 
 
12,350
 
  Land
 
 
6
 
 
 
2,333
 
 
 
6
 
 
 
1,931
 
 
 
12
 
 
 
4,264
 
  Lines of credit
 
 
1
 
 
 
140
 
 
 
2
 
 
 
332
 
 
 
3
 
 
 
472
 
  Commercial real estate
 
 
5
 
 
 
3,169
 
 
 
4
 
 
 
5,163
 
 
 
9
 
 
 
8,332
 
  Commercial non-real estate
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
  Home equity
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
  Consumer
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
    Total loans
 
 
77
 
 
$
40,424
 
 
 
38
 
 
$
19,351
 
 
 
115
 
 
$
59,775
 
 
Financial instruments whose contract amounts represents credit risk
Unless otherwise noted, the Bank requires collateral or other security to support financial instruments with off-balance-sheet credit risk (dollars in thousands).

Financial Instruments Whose Contract
 
Contract Amount At
 
Amounts Represent Credit Risk
 
September 30, 2012
 
 
December 31, 2011
 
Standby letters of credit
 
$
16,365
 
 
$
15,319
 
Home equity lines of credit
 
 
14,026
 
 
 
14,623
 
Unadvanced construction commitments
 
 
11,946
 
 
 
18,014
 
Mortgage loan commitments
 
 
7,909
 
 
 
1,059
 
Lines of credit
 
 
32,689
 
 
 
31,525
 
Loans sold with limited repurchase   provisions
 
 
31,358
 
 
 
17,558