Loans and Leases | 9 Months Ended |
Sep. 30, 2014 |
Loans and Leases | ' |
Note 4 - Loans and Leases |
A. Loans and leases outstanding are detailed by category as follows: |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | September 30, | | | December 31, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2014 | 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans held for sale | | $ | 1,375 | | | $ | 1,350 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial mortgage | | $ | 683,558 | | | $ | 625,341 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity lines and loans | | | 183,314 | | | | 189,571 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential mortgage | | | 314,127 | | | | 300,243 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction | | | 59,923 | | | | 46,369 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total real estate loans | | | 1,240,922 | | | | 1,161,524 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 342,524 | | | | 328,459 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer | | | 16,810 | | | | 16,926 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Leases | | | 44,982 | | | | 40,276 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total portfolio loans and leases | | | 1,645,238 | | | | 1,547,185 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total loans and leases | | $ | 1,646,613 | | | $ | 1,548,535 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans with fixed rates | | $ | 905,050 | | | $ | 850,168 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans with adjustable or floating rates | | | 741,563 | | | | 698,367 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total loans and leases | | $ | 1,646,613 | | | $ | 1,548,535 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net deferred loan origination costs included in the above loan table | | $ | 176 | | | $ | 222 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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B. Components of the net investment in leases are detailed as follows: |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | September 30, | | | December 31, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2014 | 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Minimum lease payments receivable | | $ | 51,089 | | | $ | 45,866 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unearned lease income | | | (8,281 | ) | | | (7,534 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Initial direct costs and deferred fees | | | 2,174 | | | | 1,944 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 44,982 | | | $ | 40,276 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
C. Non-Performing Loans and Leases(1) |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | September 30, | | | December 31, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2014 | 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-accrual loans and leases: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial mortgage | | $ | 709 | | | $ | 478 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity lines and loans | | | 1,013 | | | | 1,262 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential mortgage | | | 3,751 | | | | 4,377 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction | | | 263 | | | | 830 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 2,570 | | | | 3,539 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer | | | — | | | | 20 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Leases | | | 30 | | | | 24 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 8,336 | | | $ | 10,530 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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(1) | Purchased credit-impaired loans, which have been recorded at their fair values at acquisition, and which are performing, are excluded from this table, with the exception of $63 thousand and $238 thousand of purchased credit-impaired loans as of September 30, 2014 and December 31, 2013, respectively, which became non-performing subsequent to acquisition. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
D. Purchased Credit-Impaired Loans |
The outstanding principal balance and related carrying amount of credit-impaired loans, for which the Corporation applies ASC 310-30, Accounting for Purchased Loans with Deteriorated Credit Quality, to account for the interest earned, as of the dates indicated, are as follows: |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | September 30, | | | December 31, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2014 | 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Outstanding principal balance | | $ | 12,689 | | | $ | 14,293 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Carrying amount(1) | | $ | 9,045 | | | $ | 9,880 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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(1) | Includes $106 thousand and $293 thousand purchased credit-impaired loans as of September 30, 2014 and December 31, 2013, respectively, for which the Corporation could not estimate the timing or amount of expected cash flows to be collected at acquisition, and for which no accretable yield is recognized. Additionally, the table above includes $63 thousand and $238 thousand of purchased credit-impaired loans as of September 30, 2014 and December 31, 2013, respectively, which became non-performing subsequent to acquisition, which are disclosed in Note 4C, above, and which also have no accretable yield. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The following table presents changes in the accretable discount on purchased credit-impaired loans, for which the Corporation applies ASC 310-30, for the nine months ended September 30, 2014: |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | Accretable | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Discount | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance, December 31, 2013 | | $ | 6,134 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accretion | | | (1,219 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reclassifications from nonaccretable difference | | | 930 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Additions/adjustments | | | (123 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Disposals | | | (2 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance, September 30, 2014 | | $ | 5,720 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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E. Age Analysis of Past Due Loans and Leases |
The following tables present an aging of the Corporation’s loan and lease portfolio as of the dates indicated: |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Accruing Loans and Leases | | | Nonaccrual | | | Total | | | | | | | | | |
Loans and | Loans | | | | | | | | |
Leases | and | | | | | | | | |
(dollars in thousands) | | 30 – 59 | | | 60 – 89 | | | Over 89 | | | Total Past | | | Current | | | Total | | | | | Leases | | | | | | | | |
Days | Days | Days | Due | Accruing | | | | | | | | | | |
Past Due | Past Due | Past Due | | Loans and | | | | | | | | | | |
| | | | Leases | | | | | | | | | | |
As of September 30, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial mortgage | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 682,849 | | | $ | 682,849 | | | $ | 709 | | | $ | 683,558 | | | | | | | | | |
Home equity lines and loans | | | 443 | | | | 180 | | | | — | | | | 623 | | | | 181,678 | | | | 182,301 | | | | 1,013 | | | | 183,314 | | | | | | | | | |
Residential mortgage | | | 896 | | | | 35 | | | | — | | | | 931 | | | | 309,445 | | | | 310,376 | | | | 3,751 | | | | 314,127 | | | | | | | | | |
Construction | | | — | | | | — | | | | — | | | | — | | | | 59,660 | | | | 59,660 | | | | 263 | | | | 59,923 | | | | | | | | | |
Commercial and industrial | | | 34 | | | | 136 | | | | — | | | | 170 | | | | 339,784 | | | | 339,954 | | | | 2,570 | | | | 342,524 | | | | | | | | | |
Consumer | | | — | | | | — | | | | — | | | | — | | | | 16,810 | | | | 16,810 | | | | — | | | | 16,810 | | | | | | | | | |
Leases | | | 2 | | | | 15 | | | | — | | | | 17 | | | | 44,935 | | | | 44,952 | | | | 30 | | | | 44,982 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | $ | 1,375 | | | $ | 366 | | | $ | — | | | $ | 1,741 | | | $ | 1,635,161 | | | $ | 1,636,902 | | | $ | 8,336 | | | $ | 1,645,238 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Accruing Loans and Leases | | | Nonaccrual | | | Total | | | | | | | | | |
Loans and | Loans | | | | | | | | |
Leases | and | | | | | | | | |
(dollars in thousands) | | 30 – 59 | | | 60 – 89 | | | Over 89 | | | Total Past | | | Current | | | Total | | | | | Leases | | | | | | | | |
Days | Days | Days | Due | Accruing | | | | | | | | | | |
Past Due | Past Due | Past Due | | Loans and | | | | | | | | | | |
| | | | Leases | | | | | | | | | | |
As of December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial mortgage | | $ | 241 | | | $ | — | | | $ | — | | | $ | 241 | | | $ | 624,622 | | | $ | 624,863 | | | $ | 478 | | | $ | 625,341 | | | | | | | | | |
Home equity lines and loans | | | 209 | | | | — | | | | — | | | | 209 | | | | 188,100 | | | | 188,309 | | | | 1,262 | | | | 189,571 | | | | | | | | | |
Residential mortgage | | | 773 | | | | 35 | | | | — | | | | 808 | | | | 295,058 | | | | 295,866 | | | | 4,377 | | | | 300,243 | | | | | | | | | |
Construction | | | — | | | | — | | | | — | | | | — | | | | 45,539 | | | | 45,539 | | | | 830 | | | | 46,369 | | | | | | | | | |
Commercial and industrial | | | 334 | | | | — | | | | — | | | | 334 | | | | 324,586 | | | | 324,920 | | | | 3,539 | | | | 328,459 | | | | | | | | | |
Consumer | | | 2 | | | | 4 | | | | — | | | | 6 | | | | 16,900 | | | | 16,906 | | | | 20 | | | | 16,926 | | | | | | | | | |
Leases | | | 60 | | | | 60 | | | | — | | | | 120 | | | | 40,132 | | | | 40,252 | | | | 24 | | | | 40,276 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 1,619 | | | $ | 99 | | | $ | — | | | $ | 1,718 | | | $ | 1,534,937 | | | $ | 1,536,655 | | | $ | 10,530 | | | $ | 1,547,185 | | | | | | | | | |
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F. Allowance for Loan and Lease Losses (the “Allowance”) |
The following tables detail the roll-forward of the Corporation’s Allowance for the three and nine months ended September 30, 2014: |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | Commercial | | | Home Equity | | | Residential | | | Construction | | | Commercial | | | Consumer | | | Leases | | | Unallocated | | | Total | | | | | |
Mortgage | Lines and | Mortgage | and | | | | |
| Loans | | Industrial | | | | |
Balance, June 30, 2014 | | $ | 3,831 | | | $ | 2,594 | | | $ | 2,387 | | | $ | 1,000 | | | $ | 4,658 | | | $ | 261 | | | $ | 441 | | | $ | 298 | | | $ | 15,470 | | | | | |
Charge-offs | | | (80 | ) | | | (95 | ) | | | (11 | ) | | | — | | | | (19 | ) | | | (42 | ) | | | (246 | ) | | | — | | | | (493 | ) | | | | |
Recoveries | | | — | | | | — | | | | 9 | | | | — | | | | 1 | | | | 7 | | | | 55 | | | | — | | | | 72 | | | | | |
Provision for loan and lease losses | | | 169 | | | | (340 | ) | | | (136 | ) | | | 245 | | | | 458 | | | | (43 | ) | | | 199 | | | | (2 | ) | | | 550 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance, September 30, 2014 | | $ | 3,920 | | | $ | 2,159 | | | $ | 2,249 | | | $ | 1,245 | | | $ | 5,098 | | | $ | 183 | | | $ | 449 | | | $ | 296 | | | $ | 15,599 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | Commercial | | | Home Equity | | | Residential | | | Construction | | | Commercial | | | Consumer | | | Leases | | | Unallocated | | | Total | | | | | |
Mortgage | Lines and | Mortgage | and | | | | |
| Loans | | Industrial | | | | |
Balance, December 31, 2013 | | $ | 3,797 | | | $ | 2,204 | | | $ | 2,446 | | | $ | 845 | | | $ | 5,011 | | | $ | 259 | | | $ | 604 | | | $ | 349 | | | $ | 15,515 | | | | | |
Charge-offs | | | (100 | ) | | | (538 | ) | | | (28 | ) | | | — | | | | (188 | ) | | | (113 | ) | | | (368 | ) | | | | | | | (1,335 | ) | | | | |
Recoveries | | | 1 | | | | 2 | | | | 21 | | | | — | | | | 55 | | | | 13 | | | | 127 | | | | | | | | 219 | | | | | |
Provision for loan and lease losses | | | 222 | | | | 491 | | | | (190 | ) | | | 400 | | | | 220 | | | | 24 | | | | 86 | | | | (53 | ) | | | 1,200 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance September 30, 2014 | | $ | 3,920 | | | $ | 2,159 | | | $ | 2,249 | | | $ | 1,245 | | | $ | 5,098 | | | $ | 183 | | | $ | 449 | | | $ | 296 | | | $ | 15,599 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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The following table details the roll-forward of the Corporation’s Allowance for the three and nine months ended September 30, 2013: |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | Commercial | | | Home Equity | | | Residential | | | Construction | | | Commercial | | | Consumer | | | Leases | | | Unallocated | | | Total | | | | | |
Mortgage | Lines and | Mortgage | and | | | | |
| Loans | | Industrial | | | | |
Balance, June 30, 2013 | | $ | 4,481 | | | $ | 2,109 | | | $ | 1,773 | | | $ | 653 | | | $ | 4,295 | | | $ | 218 | | | $ | 551 | | | $ | 364 | | | $ | 14,444 | | | | | |
Charge-offs | | | (19 | ) | | | (105 | ) | | | (203 | ) | | | — | | | | (19 | ) | | | (31 | ) | | | (124 | ) | | | — | | | | (501 | ) | | | | |
Recoveries | | | — | | | | 29 | | | | 5 | | | | 6 | | | | 20 | | | | 3 | | | | 62 | | | | — | | | | 125 | | | | | |
Provision for loan and lease losses | | | 20 | | | | 153 | | | | 523 | | | | 9 | | | | 134 | | | | 68 | | | | 82 | | | | (30 | ) | | | 959 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance, September 30, 2013 | | $ | 4,482 | | | $ | 2,186 | | | $ | 2,098 | | | $ | 668 | | | $ | 4,430 | | | $ | 258 | | | $ | 571 | | | $ | 334 | | | $ | 15,027 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | Commercial | | | Home Equity | | | Residential | | | Construction | | | Commercial | | | Consumer | | | Leases | | | Unallocated | | | Total | | | | | |
Mortgage | Lines and | Mortgage | and | | | | |
| Loans | | Industrial | | | | |
Balance, December 31, 2012 | | $ | 3,907 | | | $ | 1,857 | | | $ | 2,024 | | | $ | 1,019 | | | $ | 4,637 | | | $ | 189 | | | $ | 493 | | | $ | 299 | | | $ | 14,425 | | | | | |
Charge-offs | | | (19 | ) | | | (457 | ) | | | (203 | ) | | | (720 | ) | | | (737 | ) | | | (101 | ) | | | (258 | ) | | | — | | | | (2,495 | ) | | | | |
Recoveries | | | — | | | | 29 | | | | 13 | | | | 24 | | | | 64 | | | | 7 | | | | 197 | | | | — | | | | 334 | | | | | |
Provision for loan and lease losses | | | 594 | | | | 757 | | | | 264 | | | | 345 | | | | 466 | | | | 163 | | | | 139 | | | | 35 | | | | 2,763 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance, September 30, 2013 | | $ | 4,482 | | | $ | 2,186 | | | $ | 2,098 | | | $ | 668 | | | $ | 4,430 | | | $ | 258 | | | $ | 571 | | | $ | 334 | | | $ | 15,027 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The following table details the allocation of the Allowance by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of September 30, 2014 and December 31, 2013: |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | Commercial | | | Home Equity | | | Residential | | | Construction | | | Commercial | | | Consumer | | | Leases | | | Unallocated | | | Total | | | | | |
Mortgage | Lines and | Mortgage | and | | | | |
| Loans | | Industrial | | | | |
As of September 30, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance on loans and leases: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | — | | | $ | 120 | | | $ | 613 | | | $ | — | | | $ | 892 | | | $ | 32 | | | $ | — | | | $ | — | | | $ | 1,657 | | | | | |
Collectively evaluated for impairment | | | 3,916 | | | | 2,039 | | | | 1,636 | | | | 1,245 | | | | 4,206 | | | | 151 | | | | 449 | | | | 296 | | | | 13,938 | | | | | |
Purchased credit-impaired(1) | | | 4 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 4 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 3,920 | | | $ | 2,159 | | | $ | 2,249 | | | $ | 1,245 | | | $ | 5,098 | | | $ | 183 | | | $ | 449 | | | $ | 296 | | | $ | 15,599 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance on loans and leases: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | — | | | $ | 121 | | | $ | 814 | | | $ | — | | | $ | 532 | | | $ | 52 | | | $ | — | | | $ | — | | | $ | 1,519 | | | | | |
Collectively evaluated for impairment | | | 3,797 | | | | 2,083 | | | | 1,632 | | | | 845 | | | | 4,479 | | | | 207 | | | | 604 | | | | 349 | | | | 13,996 | | | | | |
Purchased credit-impaired(1) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 3,797 | | | $ | 2,204 | | | $ | 2,446 | | | $ | 845 | | | $ | 5,011 | | | $ | 259 | | | $ | 604 | | | $ | 349 | | | $ | 15,515 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
-1 | Purchased credit-impaired loans are evaluated for impairment on an individual basis. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The following table details the carrying value for loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of September 30, 2014 and December 31, 2013: |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | Commercial | | | Home Equity | | | Residential | | | Construction | | | Commercial | | | Consumer | | | Leases | | | Total | | | | | | | | | |
Mortgage | Lines and | Mortgage | and | | | | | | | | |
| Loans | | Industrial | | | | | | | | |
As of September 30, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Carrying value of loans and leases: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 646 | | | $ | 1,237 | | | $ | 9,314 | | | $ | 263 | | | $ | 3,650 | | | $ | 33 | | | $ | — | | | $ | 15,143 | | | | | | | | | |
Collectively evaluated for impairment | | | 674,272 | | | | 182,064 | | | | 304,784 | | | | 59,615 | | | | 338,557 | | | | 16,777 | | | | 44,982 | | | | 1,621,051 | | | | | | | | | |
Purchased credit-impaired(1) | | | 8,640 | | | | 13 | | | | 29 | | | | 45 | | | | 317 | | | | — | | | | — | | | | 9,044 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 683,558 | | | $ | 183,314 | | | $ | 314,127 | | | $ | 59,923 | | | $ | 342,524 | | | $ | 16,810 | | | $ | 44,982 | | | $ | 1,645,238 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Carrying value of loans and leases: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 236 | | | $ | 1,428 | | | $ | 9,860 | | | $ | 1,172 | | | $ | 4,758 | | | $ | 52 | | | $ | — | | | $ | 17,506 | | | | | | | | | |
Collectively evaluated for impairment | | | 616,077 | | | | 188,128 | | | | 290,345 | | | | 44,715 | | | | 323,384 | | | | 16,874 | | | | 40,276 | | | | 1,519,799 | | | | | | | | | |
Purchased credit-impaired(1) | | | 9,028 | | | | 15 | | | | 38 | | | | 482 | | | | 317 | | | | — | | | | — | | | | 9,880 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 625,341 | | | $ | 189,571 | | | $ | 300,243 | | | $ | 46,369 | | | $ | 328,459 | | | $ | 16,926 | | | $ | 40,276 | | | $ | 1,547,185 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(1) | Purchased credit-impaired loans are evaluated for impairment on an individual basis. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
As part of the process of determining the Allowance for the different segments of the loan and lease portfolio, Management considers certain credit quality indicators. For the commercial mortgage, construction and commercial and industrial loan segments, periodic reviews of the individual loans are performed by both in-house staff as well as external loan reviewers. The result of these reviews is reflected in the risk grade assigned to each loan. These internally assigned grades are as follows: |
|
• | | Pass – Loans considered satisfactory with no indications of deterioration. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
• | | Special mention - Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
• | | Substandard - Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
• | | Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
In addition, for the remaining segments of the loan and lease portfolio, which include residential mortgage, home equity lines and loans, consumer, and leases, the credit quality indicator used to determine this component of the Allowance is based on performance status. |
The following tables detail the carrying value of loans and leases by portfolio segment based on the credit quality indicators used to determine the Allowance as of September 30, 2014 and December 31, 2013: |
Credit Risk Profile by Internally Assigned Grade |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | Commercial Mortgage | | | Construction | | | Commercial and Industrial | | | Total | | | | | | | | | |
| | September 30, | | | December 31, | | | September 30, | | | December 31, | | | September 30, | | | December 31, | | | September 30, | | | December 31, | | | | | | | | | |
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | | | | | | | | |
Pass | | $ | 677,136 | | | $ | 620,227 | | | $ | 59,660 | | | $ | 43,812 | | | $ | 335,153 | | | $ | 320,211 | | | $ | 1,071,949 | | | $ | 984,250 | | | | | | | | | |
Special Mention | | | 4,789 | | | | 2,793 | | | | — | | | | — | | | | 1,405 | | | | 387 | | | | 6,194 | | | | 3,180 | | | | | | | | | |
Substandard | | | 1,633 | | | | 2,321 | | | | 263 | | | | 2,557 | | | | 5,966 | | | | 7,861 | | | | 7,862 | | | | 12,739 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 683,558 | | | $ | 625,341 | | | $ | 59,923 | | | $ | 46,369 | | | $ | 342,524 | | | $ | 328,459 | | | $ | 1,086,005 | | | $ | 1,000,169 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Credit Risk Profile by Payment Activity |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | Residential Mortgage | | | Home Equity Lines and Loans | | | Consumer | | | Leases | | | Total | |
| | September 30, | | | December 31, | | | September 30, | | | December 31, | | | September 30, | | | December 31, | | | September 30, | | | December 31, | | | September 30, | | | December 31, | |
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 |
Performing | | $ | 310,376 | | | $ | 295,866 | | | $ | 182,301 | | | $ | 188,309 | | | $ | 16,810 | | | $ | 16,906 | | | $ | 44,952 | | | $ | 40,252 | | | $ | 554,439 | | | $ | 541,333 | |
Non-performing | | | 3,751 | | | | 4,377 | | | | 1,013 | | | | 1,262 | | | | — | | | | 20 | | | | 30 | | | | 24 | | | | 4,794 | | | | 5,683 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 314,127 | | | $ | 300,243 | | | $ | 183,314 | | | $ | 189,571 | | | $ | 16,810 | | | $ | 16,926 | | | $ | 44,982 | | | $ | 40,276 | | | $ | 559,233 | | | $ | 547,016 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
G. Troubled Debt Restructurings (“TDRs”): |
The restructuring of a loan is considered a “troubled debt restructuring” if both of the following conditions are met: (i) the borrower is experiencing financial difficulties, and (ii) the creditor has granted a concession. The most common concessions granted include one or more modifications to the terms of the debt, such as (a) a reduction in the interest rate for the remaining life of the debt, (b) an extension of the maturity date at an interest rate lower than the current market rate for new debt with similar risk, (c) a temporary period of interest-only payments, (d) a reduction in the contractual payment amount for either a short period or remaining term of the loan, and (e) for leases, a reduced lease payment. A less common concession granted is the forgiveness of a portion of the principal. |
The determination of whether a borrower is experiencing financial difficulties takes into account not only the current financial condition of the borrower, but also the potential financial condition of the borrower, were a concession not granted. Similarly, the determination of whether a concession has been granted is very subjective in nature. For example, simply extending the term of a loan at its original interest rate or even at a higher interest rate could be interpreted as a concession unless the borrower could readily obtain similar credit terms from a different lender. |
|
The following table presents the balance of TDRs as of the indicated dates: |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | September 30, | | | December 31, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2014 | 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TDRs included in nonperforming loans and leases | | $ | 1,725 | | | $ | 1,699 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TDRs in compliance with modified terms | | | 6,913 | | | | 7,277 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total TDRs | | $ | 8,638 | | | $ | 8,976 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The following tables present information regarding loan and lease modifications categorized as TDRs for the three and nine months ended September 30, 2014: |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended September 30, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | Number of Contracts | | | Pre-Modification | | | Post-Modification | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Outstanding Recorded | Outstanding Recorded | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment | Investment | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential mortgage | | | 1 | | | $ | 79 | | | $ | 79 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 1 | | | $ | 79 | | | $ | 79 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Nine Months Ended September 30, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | Number of Contracts | | | Pre-Modification | | | Post-Modification | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Outstanding Recorded | Outstanding Recorded | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment | Investment | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential mortgage | | | 3 | | | $ | 471 | | | $ | 473 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity lines and loans | | | 1 | | | | 70 | | | | 70 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 1 | | | | 246 | | | | 255 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 5 | | | $ | 787 | | | $ | 798 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The following tables present information regarding the types of loan and lease modifications made for the three and nine months ended September 30, 2014: |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Number of Contracts for the Three Months Ended September 30, 2014 | | | | | | | | | | | | | | | | | |
| | Interest | | | Loan Term | | | Interest Rate | | | Interest Rate | | | Contractual | | | Forgiveness | | | | | | | | | | | | | | | | | |
Rate | Extension | Change and | Change | Payment | of Interest | | | | | | | | | | | | | | | | |
Change | | Term Extension | and/or | Reduction | | | | | | | | | | | | | | | | | |
| | | Interest-Only | (Leases only) | | | | | | | | | | | | | | | | | |
| | | Period | | | | | | | | | | | | | | | | | | |
Residential mortgage | | | — | | | | — | | | | 1 | | | | — | | | | — | | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | — | | | | — | | | | 1 | | | | — | | | | — | | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Number of Contracts for the Nine Months Ended September 30, 2014 | | | | | | | | | | | | | | | | | |
| | Interest | | | Loan Term | | | Interest Rate | | | Interest Rate | | | Contractual | | | Forgiveness | | | | | | | | | | | | | | | | | |
Rate | Extension | Change and | Change | Payment | of Interest | | | | | | | | | | | | | | | | |
Change | | Term Extension | and/or | Reduction | | | | | | | | | | | | | | | | | |
| | | Interest-Only | (Leases only) | | | | | | | | | | | | | | | | | |
| | | Period | | | | | | | | | | | | | | | | | | |
Residential mortgage | | | — | | | | — | | | | 3 | | | | — | | | | — | | | | — | | | | | | | | | | | | | | | | | |
Home equity lines and loans | | | — | | | | 1 | | | | — | | | | — | | | | — | | | | — | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | — | | | | — | | | | 1 | | | | — | | | | — | | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | — | | | | 1 | | | | 4 | | | | — | | | | — | | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
During the three and nine months ended September 30, 2014, there were no defaults of loans or leases that had been previously modified to troubled debt restructurings. |
|
H. Impaired Loans |
The following tables detail the recorded investment and principal balance of impaired loans by portfolio segment, their related Allowance and interest income recognized as of the dates or for the periods indicated: |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | Recorded | | | Principal | | | Related | | | Average | | | Interest | | | Cash-Basis | | | | | | | | | | | | | | | | | |
Investment(2) | Balance | Allowance | Principal | Income | Interest | | | | | | | | | | | | | | | | |
| | | Balance | Recognized | Income | | | | | | | | | | | | | | | | |
| | | | | Recognized | | | | | | | | | | | | | | | | |
As of or for the three months ended September 30, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans with related Allowance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity lines and loans | | $ | 272 | | | $ | 360 | | | $ | 120 | | | $ | 360 | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | |
Residential mortgage | | | 4,766 | | | | 4,755 | | | | 613 | | | | 4,863 | | | | 38 | | | | — | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 3,012 | | | | 3,213 | | | | 892 | | | | 3,250 | | | | 15 | | | | — | | | | | | | | | | | | | | | | | |
Consumer | | | 33 | | | | 33 | | | | 32 | | | | 33 | | | | — | | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 8,083 | | | $ | 8,361 | | | $ | 1,657 | | | $ | 8,506 | | | $ | 53 | | | $ | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Impaired loans without related Allowance(1) (3): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial mortgage | | $ | 646 | | | $ | 667 | | | $ | — | | | $ | 713 | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | |
Home equity lines and loans | | | 965 | | | | 969 | | | | — | | | | 1,067 | | | | 2 | | | | — | | | | | | | | | | | | | | | | | |
Residential mortgage | | | 4,548 | | | | 4,873 | | | | — | | | | 5,253 | | | | 29 | | | | — | | | | | | | | | | | | | | | | | |
Construction | | | 263 | | | | 1,225 | | | | — | | | | 1,316 | | | | — | | | | — | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 638 | | | | 641 | | | | — | | | | 661 | | | | — | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 7,060 | | | $ | 8,375 | | | $ | — | | | $ | 9,010 | | | $ | 31 | | | $ | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Grand total | | $ | 15,143 | | | $ | 16,736 | | | $ | 1,657 | | | $ | 17,516 | | | $ | 84 | | | $ | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(1) | The table above does not include the recorded investment of $43 thousand of impaired leases without a related Allowance. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
-2 | Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(3) | This table excludes all purchased credit-impaired loans, which are discussed in Note 4D, above. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | Recorded | | | Principal | | | Related | | | Average | | | Interest | | | Cash-Basis | | | | | | | | | | | | | | | | | |
Investment(2) | Balance | Allowance | Principal | Income | Interest | | | | | | | | | | | | | | | | |
| | | Balance | Recognized | Income | | | | | | | | | | | | | | | | |
| | | | | Recognized | | | | | | | | | | | | | | | | |
As of or for the nine months ended September 30, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans with related Allowance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity lines and loans | | $ | 272 | | | $ | 360 | | | $ | 120 | | | $ | 359 | | | $ | 6 | | | $ | — | | | | | | | | | | | | | | | | | |
Residential mortgage | | | 4,766 | | | | 4,755 | | | | 613 | | | | 4,774 | | | | 115 | | | | — | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 3,012 | | | | 3,213 | | | | 892 | | | | 3,276 | | | | 34 | | | | — | | | | | | | | | | | | | | | | | |
Consumer | | | 33 | | | | 33 | | | | 32 | | | | 33 | | | | 1 | | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 8,083 | | | $ | 8,361 | | | $ | 1,657 | | | $ | 8,442 | | | $ | 156 | | | $ | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Impaired loans without related Allowance(1) (3): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial mortgage | | $ | 646 | | | $ | 667 | | | $ | — | | | $ | 716 | | | $ | 18 | | | $ | — | | | | | | | | | | | | | | | | | |
Home equity lines and loans | | | 965 | | | | 969 | | | | — | | | | 1,075 | | | | 9 | | | | — | | | | | | | | | | | | | | | | | |
Residential mortgage | | | 4,548 | | | | 4,873 | | | | — | | | | 5,235 | | | | 103 | | | | — | | | | | | | | | | | | | | | | | |
Construction | | | 263 | | | | 1,225 | | | | — | | | | 1,495 | | | | — | | | | — | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 638 | | | | 641 | | | | — | | | | 670 | | | | 2 | | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 7,060 | | | $ | 8,375 | | | $ | — | | | $ | 9,191 | | | $ | 132 | | | $ | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Grand total | | $ | 15,143 | | | $ | 16,736 | | | $ | 1,657 | | | $ | 17,633 | | | $ | 288 | | | $ | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(1) | The table above does not include the recorded investment of $43 thousand of impaired leases without a related Allowance. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
-2 | Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(3) | This table excludes all purchased credit-impaired loans, which are discussed in Note 4D, above. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | Recorded | | | Principal | | | Related | | | Average | | | Interest | | | Cash-Basis | | | | | | | | | | | | | | | | | |
Investment(2) | Balance | Allowance | Principal | Income | Interest | | | | | | | | | | | | | | | | |
| | | Balance | Recognized | Income | | | | | | | | | | | | | | | | |
| | | | | Recognized | | | | | | | | | | | | | | | | |
As of or for the three months ended September 30, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans with related Allowance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity lines and loans | | $ | 544 | | | $ | 589 | | | $ | 119 | | | $ | 619 | | | $ | 5 | | | $ | — | | | | | | | | | | | | | | | | | |
Residential mortgage | | | 4,448 | | | | 4,419 | | | | 628 | | | | 4,485 | | | | 28 | | | | — | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 2,586 | | | | 2,709 | | | | 544 | | | | 2,798 | | | | 21 | | | | — | | | | | | | | | | | | | | | | | |
Consumer | | | 82 | | | | 82 | | | | 56 | | | | 84 | | | | 1 | | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 7,660 | | | $ | 7,799 | | | $ | 1,347 | | | $ | 7,986 | | | $ | 55 | | | $ | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Impaired loans without related Allowance(1) (3): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial mortgage | | $ | 421 | | | $ | 432 | | | $ | — | | | $ | 471 | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | |
Home equity lines and loans | | | 1,523 | | | | 1,532 | | | | — | | | | 1,631 | | | | 2 | | | | — | | | | | | | | | | | | | | | | | |
Residential mortgage | | | 5,091 | | | | 5,340 | | | | — | | | | 5,598 | | | | 39 | | | | — | | | | | | | | | | | | | | | | | |
Construction | | | 3,072 | | | | 4,035 | | | | — | | | | 3,824 | | | | 13 | | | | — | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 1,641 | | | | 1,812 | | | | — | | | | 1,817 | | | | 1 | | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 11,748 | | | $ | 13,151 | | | $ | — | | | $ | 13,341 | | | $ | 55 | | | $ | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Grand total | | $ | 19,408 | | | $ | 20,950 | | | $ | 1,347 | | | $ | 21,327 | | | $ | 110 | | | $ | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(1) | The table above does not include the recorded investment of $62 thousand of impaired leases without a related Allowance. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
-2 | Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
-3 | This table excludes all purchased credit-impaired loans, which are discussed in Note 5D, above. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | Recorded | | | Principal | | | Related | | | Average | | | Interest | | | Cash-Basis | | | | | | | | | | | | | | | | | |
Investment(2) | Balance | Allowance | Principal | Income | Interest | | | | | | | | | | | | | | | | |
| | | Balance | Recognized | Income | | | | | | | | | | | | | | | | |
| | | | | Recognized | | | | | | | | | | | | | | | | |
As of or for the nine months ended September 30, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans with related Allowance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity lines and loans | | $ | 544 | | | $ | 589 | | | $ | 119 | | | $ | 617 | | | $ | 15 | | | $ | — | | | | | | | | | | | | | | | | | |
Residential mortgage | | | 4,448 | | | | 4,419 | | | | 628 | | | | 4,408 | | | | 83 | | | | — | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 2,586 | | | | 2,709 | | | | 544 | | | | 2,823 | | | | 53 | | | | — | | | | | | | | | | | | | | | | | |
Consumer | | | 82 | | | | 82 | | | | 56 | | | | 86 | | | | 4 | | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 7,660 | | | $ | 7,799 | | | $ | 1,347 | | | $ | 7,934 | | | $ | 155 | | | $ | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Impaired loans without related Allowance(1) (3): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial mortgage | | $ | 421 | | | $ | 432 | | | $ | — | | | $ | 471 | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | |
Home equity lines and loans | | | 1,523 | | | | 1,532 | | | | — | | | | 1,631 | | | | 2 | | | | — | | | | | | | | | | | | | | | | | |
Residential mortgage | | | 5,091 | | | | 5,340 | | | | — | | | | 5,598 | | | | 39 | | | | — | | | | | | | | | | | | | | | | | |
Construction | | | 3,072 | | | | 4,035 | | | | — | | | | 3,824 | | | | 13 | | | | — | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 1,641 | | | | 1,812 | | | | — | | | | 1,817 | | | | 1 | | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 11,748 | | | $ | 13,151 | | | $ | — | | | $ | 13,341 | | | $ | 55 | | | $ | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Grand total | | $ | 19,408 | | | $ | 20,950 | | | $ | 1,347 | | | $ | 21,275 | | | $ | 210 | | | $ | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(1) | The table above does not include the recorded investment of $62 thousand of impaired leases without a related Allowance. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
-2 | Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
-3 | This table excludes all purchased credit-impaired loans, which are discussed in Note 5D, above. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | Recorded | | | Principal | | | Related | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment(2) | Balance | Allowance | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans with related allowance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity lines and loans | | $ | 277 | | | $ | 279 | | | $ | 121 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential mortgage | | | 5,297 | | | | 5,312 | | | | 814 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 2,985 | | | | 3,100 | | | | 532 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer | | | 52 | | | | 54 | | | | 52 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 8,611 | | | | 8,745 | | | | 1,519 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans(1),(3) without related allowance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial mortgage | | | 236 | | | | 237 | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity lines and loans | | | 1,151 | | | | 1,159 | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential mortgage | | | 4,563 | | | | 4,911 | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction | | | 1,172 | | | | 2,134 | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 1,773 | | | | 1,954 | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 8,895 | | | | 10,395 | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Grand total | | $ | 17,506 | | | $ | 19,140 | | | $ | 1,519 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(1) | The table above does not include the recorded investment of $63 thousand of impaired leases without a related Allowance. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(2) | Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(3) | This table excludes all purchased credit-impaired loans, which are discussed in Note 4D, above. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |