v2.4.0.6
Loans (Tables)
9 Months Ended
Sep. 30, 2012
Receivables [Abstract]  
Loan Balances

Loan balances were as follows (in thousands):

 

  9/30/2012  12/31/2011 
       
Commercial $181,170  $193,176 
Residential real estate  281,745   266,268 
Nonresidential real estate  555,234   523,485 
Construction  98,609   104,788 
Consumer  16,170   16,618 
Municipal obligations  27,603   27,066 
Gross loans  1,160,531   1,131,401 
Less: Deferred loan origination fees and discount  (1,457)  (1,447)
Allowance for loan losses  (16,585)  (18,288)
         
Net loans $1,142,489  $1,111,666 

 

Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method

The following tables present the activity in the allowance for loan losses for the three months ending September 30, 2012 and 2011, and the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2011 (in thousands):

 

        Non             
     Residential  Residential        Municipal    
 Commercial  Real estate  Real estate  Construction  Consumer  Obligations  Total 
September 30, 2012                     
Allowance for loan losses                            
Beginning balance $2,159  $3,786  $6,666  $5,167  $392  $176  $18,346 
Provision for loan losses  (215)  2,095   875   (729)  325   (151)  2,200 
Loans charged off  (89)  (1,051)  (436)  (2,292)  (371)  -   (4,239)
Recoveries  18   3   183   2   72   -   278 
                             
Total ending allowance balance $1,873  $4,833  $7,288  $2,148  $418  $25  $16,585 
                             
Ending allowance balance attributable to loans                            
Individually evaluated for impairment $317  $1,729  $2,993  $1,215  $-  $-  $6,254 
Collectively evaluated for impairment  1,556   3,104   4,295   933   418   25   10,331 
                             
Total ending allowance balance $1,873  $4,833  $7,288  $2,148  $418  $25  $16,585 
                             
Loans                            
Loans individually evaluated for impairment $1,118  $8,500  $19,111  $5,774  $-  $-  $34,503 
Loans collectively evaluated for impairment  180,052   273,245   536,123   92,835   16,170   27,603   1,126,028 
                             
Total ending loans balance $181,170  $281,745  $555,234  $98,609  $16,170  $27,603  $1,160,531 

 

        Non             
     Residential  Residential        Municipal    
 Commercial  Real estate  Real estate  Construction  Consumer  Obligations  Total 
September 30, 2011                     
Allowance for loan losses                            
Beginning balance $3,931  $2,403  $6,782  $4,496  $167  $37  $17,816 
Provision for loan losses  262   384   1,590   181   154   (21)  2,550 
Loans charged off  (1,014)  (210)  (586)  (501)  (253)  -   (2,564)
Recoveries  28   2   16   -   93   -   139 
                             
Total ending allowance balance $3,207  $2,579  $7,802  $4,176  $161  $16  $17,941 

 

The following tables present the activity in the allowance for loan losses for the nine months ending September 30, 2012 and 2011, and the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2012 and December 31, 2011 (in thousands):

  

        Non             
     Residential  Residential        Municipal    
 Commercial  Real estate  Real estate  Construction  Consumer  Obligations  Total 
September 30, 2012                     
Allowance for loan losses                            
Beginning balance $3,207  $2,591  $7,614  $4,701  $162  $13  $18,288 
Provision for loan losses  (892)  3,782   1,095   977   726   12   5,700 
Loans charged off  (461)  (1,573)  (1,609)  (3,538)  (696)  -   (7,877)
Recoveries  19   33   188   8   226   -   474 
                             
Total ending allowance balance $1,873  $4,833  $7,288  $2,148  $418  $25  $16,585 
                             
Ending allowance balance attributable to loans                            
Individually evaluated for impairment $317  $1,729  $2,993  $1,215  $-  $-  $6,254 
Collectively evaluated for impairment  1,556   3,104   4,295   933   418   25   10,331 
                             
Total ending allowance balance $1,873  $4,833  $7,288  $2,148  $418  $25  $16,585 
                             
Loans                            
Loans individually evaluated for impairment $1,118  $8,500  $19,111  $5,774  $-  $-  $34,503 
Loans collectively evaluated for impairment  180,052   273,245   536,123   92,835   16,170   27,603   1,126,028 
                             
Total ending loans balance $181,170  $281,745  $555,234  $98,609  $16,170  $27,603  $1,160,531 

 

        Non             
     Residential  Residential        Municipal    
 Commercial  Real estate  Real estate  Construction  Consumer  Obligations  Total 
September 30, 2011                     
Allowance for loan losses                            
Beginning balance $3,440  $2,431  $8,126  $3,150  $166  $55  $17,368 
Provision for loan losses  1,649   780   2,728   3,025   407   (39)  8,550 
Loans charged off  (1,934)  (674)  (3,070)  (2,000)  (715)  -   (8,393)
Recoveries  52   42   18   1   303   -   416 
                             
Total ending allowance balance $3,207  $2,579  $7,802  $4,176  $161  $16  $17,941 

 

        Non             
     Residential  Residential        Municipal    
 Commercial  Real estate  Real estate  Construction  Consumer  Obligations  Total 
December 31, 2011                     
Ending allowance balance attributable to loans                            
Individually evaluated for impairment $224  $477  $2,994  $3,748  $-  $-  $7,443 
Collectively evaluated for impairment  2,983   2,114   4,620   953   162   13   10,845 
                             
  $3,207  $2,591  $7,614  $4,701  $162  $13  $18,288 
Loans                            
Loans individually evaluated for impairment $917  $6,100  $20,390  $7,854  $-  $-  $35,261 
Loans collectively evaluated for impairment  192,259   260,168   503,095   96,934   16,618   27,066   1,096,140 
                             
Total ending loans balance $193,176  $266,268  $523,485  $104,788  $16,618  $27,066  $1,131,401 
Individually Impaired Loans by Class of Loans

The following table presents individually impaired loans by class of loans as of and for the three months ended September 30, 2012 (in thousands):

 

    Unpaid           Allowance for     Average     Interest        
    Principal     Recorded     Loan Losses     Recorded     Income     Interest  
    Balance     Investment     Allocated     Investment     Recognized     Received  
                                     
With no related allowance recorded                                                
Commercial   $ 30     $ 30     $ -     $ 170     $ -     $ -  
                                                 
Residential real estate                                                
Home equity lines of credit     50       50       -       50       -       -  
Multifamily properties     379       48       -       24       -       -  
Other     2,869       2,626       -       2,336       -       -  
                                                 
Nonresidential real estate                                                
Owner occupied properties     802       792       -       490       -       -  
Non owner occupied properties     6,206       5,701       -       3,797       -       -  
                                                 
Construction     809       509       -       432       -       -  
                                                 
With an allowance recorded                                                
Commercial     1,088       1,088       317       823       4       4  
                                                 
Residential real estate                                                
Home equity lines of credit     1,488       1,488       1,341       813       12       12  
Multifamily properties     1,324       1,324       243       1,554       11       11  
Other     3,109       2,964       145       3,309       31       24  
                                                 
Nonresidential real estate                                                
Owner occupied properties     8,544       8,543       2,651       8,774       81       81  
Non owner occupied properties     4,595       4,074       342       6,449       34       34  
                                                 
Construction     6,387       5,266       1,215       6,494       45       45  
                                                 
Total   $ 37,680     $ 34,503     $ 6,254     $ 35,515     $ 218     $ 211  

 

The following table presents individually impaired loans by class of loans as of and for the nine months ended September 30, 2012 (in thousands):

 

    Unpaid           Allowance for     Average     Interest        
    Principal     Recorded     Loan Losses     Recorded     Income     Interest  
    Balance     Investment     Allocated     Investment     Recognized     Received  
                                     
With no related allowance recorded                                                
Commercial   $ 30     $ 30     $ -     $ 263     $ -     $ -  
                                                 
Residential real estate                                                
Home equity lines of credit     50       50       -       50       -       -  
Multifamily properties     379       48       -       273       -       -  
Other     2,869       2,626       -       2,094       -       -  
                                                 
Nonresidential real estate                                                
Owner occupied properties     802       792       -       698       -       -  
Non owner occupied properties     6,206       5,701       -       2,848       -       -  
                                                 
Construction     809       509       -       256       -       -  
                                                 
With an allowance recorded                                                
Commercial     1,088       1,088       317       950       7       5  
                                                 
Residential real estate                                                
Home equity lines of credit     1,488       1,488       1,341       339       12       12  
Multifamily properties     1,324       1,324       243       815       22       22  
Other     3,109       2,964       145       3,557       76       64  
                                                 
Nonresidential real estate                                                
Owner occupied properties     8,544       8,543       2,651       9,081       239       237  
Non owner occupied properties     4,595       4,074       342       7,406       143       106  
                                                 
Construction     6,387       5,266       1,215       8,017       163       155  
                                                 
Total   $ 37,680     $ 34,503     $ 6,254     $ 36,647     $ 662     $ 601  

 

The following table presents individually impaired loans by class of loans as of, and for the three months ended September 30, 2011:

 

    Unpaid           Allowance for     Average     Interest        
    Principal     Recorded     Loan Losses     Recorded     Income     Interest  
    Balance     Investment     Allocated     Investment     Recognized     Received  
                                     
With no related allowance recorded                                                
Commercial   $ 349     $ 310     $ -     $ 371     $ -     $ -  
                                                 
Residential real estate                                                
Home equity lines of credit     -       -       -       -       -       -  
Multifamily properties     -       -       -       -       -       -  
                                                 
Other     2,121       2,121       -       2,325       -       -  
                                                 
Nonresidential real estate                                                
Owner occupied properties     1,011       955       -       587       -       -  
Non owner occupied properties     897       897       -       1,044       -       -  
                                                 
Construction     2,036       889       -       909       -       -  
                                                 
With an allowance recorded                                                
Commercial     1,379       1,379       504       2,370       10       5  
                                                 
Residential real estate                                                
Home equity lines of credit     -       -       -       -       -       -  
Multifamily properties     868       868       291       869       14       9  
Other     2,869       2,850       433       2,755       18       17  
                                                 
Nonresidential real estate                                                
Owner occupied properties     9,471       9,348       1,093       5,123       80       25  
Non owner occupied properties     13,667       11,830       2,185       9,870       90       90  
                                                 
Construction     8,962       7,726       3,256       8,459       76       75  
                                                 
Total   $ 43,630     $ 39,173     $ 7,762     $ 34,682     $ 288     $ 221  

 

The following table presents individually impaired loans by class of loans as of and for the nine months ended September 30, 2011 (in thousands):

 

    Unpaid           Allowance for     Average     Interest        
    Principal     Recorded     Loan Losses     Recorded     Income     Interest  
    Balance     Investment     Allocated     Investment     Recognized     Received  
                                     
With no related allowance recorded                                                
Commercial   $ 349     $ 310     $ -     $ 351     $ -     $ -  
                                                 
Residential real estate                                                
Home equity lines of credit     -       -       -       -       -       - -  
Multifamily properties     -       -       -       17       -       -  
Other     2,121       2,121       -       1,288       -       -  
                                                 
Nonresidential real estate                                                
Owner occupied properties     1,011       955       -       503       -       -  
Non owner occupied properties     897       897       -       848       -       -  
                                                 
Construction     2,036       889       -       559       -       -  
                                                 
With an allowance recorded                                                
Commercial     1,379       1,379       504       1,959       17       9  
                                                 
Residential real estate                                                
Home equity lines of credit     -       -       -       -       -       -  
Multifamily properties     868       868       291       922       42       28  
Other     2,869       2,850       433       2,441       54       51  
                                                 
Nonresidential real estate                                                
Owner occupied properties     9,471       9,348       1,093       2,884       81       26  
Non owner occupied properties     13,667       11,830       2,185       10,044       215       210  
                                                 
Construction     8,962       7,726       3,256       8,035       203       189  
                                                 
Total   $ 43,630     $ 39,173     $ 7,762     $ 29,851     $ 612     $ 513  

 

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2011 (in thousands):

 

    Unpaid           Allowance for  
    Principal     Recorded     Loan Losses  
    Balance     Investment     Allocated  
                   
With no related allowance recorded                        
Commercial   $ 350     $ 310     $ -  
                         
Residential real estate                        
Home equity lines of credit     50       50       -  
Multifamily properties     538       538       -  
Other     1,703       1,703       -  
                         
Nonresidential real estate                        
Owner occupied properties     1,101       1,101       -  
Non owner occupied properties     2,122       2,116       -  
                         
Construction     356       319       -  
                         
With an allowance recorded                        
Commercial     733       607       224  
                         
Residential real estate                        
Home equity lines of credit     -       -       -  
Multifamily properties     -       -       -  
Other     3,859       3,809       477  
                         
Nonresidential real estate                        
Owner occupied properties     10,771       9,798       1,477  
Non owner occupied properties     8,476       7,375       1,517  
                         
Construction     8,267       7,535       3,748  
                         
Total   $ 38,326     $ 35,261     $ 7,443  
Aging of Recorded Investment in Past Due Loans by Class of Loans

The following table presents the aging of the recorded investment in past due loans by class of loans as of September 30, 2012 and December 31, 2011 (in thousands):

 

  Loans  Loans over          
  30-90 days  90 days     Loans not    
  past due  past due  Nonaccrual  past due  Total 
September 30, 2012               
Commercial $599  $-  $968  $179,603  $181,170 
Residential real estate                    
Home equity lines of credit  827   39   768   98,658   100,292 
Multifamily properties  111   -   48   46,624   46,783 
Other residential real estate  3,657   -   3,676   127,337   134,670 
                     
Nonresidential real estate                    
Owner occupied properties  3,591   -   1,368   273,240   278,199 
Non owner occupied properties  1,881   -   6,305   268,849   277,035 
Construction  737   -   1,601   96,271   98,609 
                     
Consumer                    
Credit card balances  32   66   -   6,399   6,497 
Other consumer  13   -   79   9,581   9,673 
                     
Municipal obligations  -   -   -   27,603   27,603 
                     
Total $11,448  $105  $14,813  $1,134,165  $1,160,531 

 

  Loans  Loans over          
  30-90 days  90 days     Loans not    
  past due  past due  Nonaccrual  past due  Total 
December 31, 2011               
Commercial $692  $74  $1,175  $191,235  $193,176 
Residential real estate                    
Home equity lines of credit  1,094   -   910   92,676   94,680 
Multifamily properties  -   -   -   36,756   36,756 
Other residential real estate  5,854   112   4,415   124,451   134,832 
                     
Nonresidential real estate                    
Owner occupied properties  2,623   -   2,270   247,875   252,768 
Non owner occupied properties  3,942   -   4,358   262,417   270,717 
Construction  265   -   1,897   102,626   104,788 
                     
Consumer                    
Credit card balances  60   32   -   6,400   6,492 
Other consumer  37   1   626   9,462   10,126 
                     
Municipal obligations  -   -   -   27,066   27,066 
                     
Total $14,567  $219  $15,651  $1,100,964  $1,131,401 

 

Loans by Class Modified as Troubled Debt Restructurings
    Pre-Modification  Post-Modification 
     Outstanding Recorded  Outstanding Recorded 
  Number of Loans  Investment  Investment 
Troubled Debt Restructurings:         
          
Commercial  2  $190,168  $184,336 
Residential real estate            
Home equity lines of credit  -   -   - 
Multifamily properties  1   485,000   48,238 
Other residential real estate  1   187,105   186,074 
Nonresidential real estate            
Owner occupied properties  1   153,891   153,891 
Non owner occupied properties  -   -   - 
Construction  5   3,204,872   2,957,006 
Consumer            
Credit card balances  -   -   - 
Other consumer  -   -   - 
             
Municipal obligations  -   -   - 
             
Total  10  $4,221,036  $3,529,544 

 

Loans by Class Modified as Troubled Debt Restructurings for which there was Payment Default within Twelve Months Following Modification
Troubled Debt Restructurings      
That Subsequently Defaulted: Number of Loans  Recorded Investment 
       
Commercial 1  $154,357 
Residential real estate        
Home equity lines of credit        
Multifamily properties  1   48,238 
Other residential real estate  1   465,293 
Nonresidential real estate        
Owner occupied properties        
Non owner occupied properties  3   3,234,737 
Construction  2   1,616,100 
Consumer        
Credit card balances        
Other consumer        
Municipal obligations  -   - 
         
Total  8  $5,518,725 

 

Risk Category of Loans by Class of Loans

Based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands):

 

    Special             
  Pass  Mention  Substandard  Doubtful  Not Rated(1)  Total 
September 30, 2012                        
Commercial $166,935  $10,448  $3,787  $-  $-  $181,170 
Residential real estate                        
Home equity lines of credit  11,827   781   1,953   -   85,731   100,292 
Multifamily properties  45,311   100   1,372   -   -   46,783 
Other residential real estate  40,607   1,143   10,496   -   82,424   134,670 
                         
Nonresidential real estate                        
Owner occupied properties  248,156   10,909   19,134   -   -   278,199 
Non owner occupied properties  255,141   7,304   14,590   -   -   277,035 
Construction  87,924   2,264   8,421   -   -   98,609 
                         
Consumer                        
Credit card balances  -   -   -   -   6,497   6,497 
Other consumer  -   -   19   -   9,654   9,673 
Municipal obligations  27,603   -   -   -   -   27,603 
                         
Total $883,504  $32,949  $59,772  $0  $184,306  $1,160,531 

 

(1) Not rated loans represent the homogenous pools risk category.

 

    Special             
  Pass  Mention  Substandard  Doubtful  Not Rated(1)  Total 
December 31, 2011                        
Commercial $170,394  $9,684  $13,098  $-  $-  $193,176 
Residential real estate                        
Home equity lines of credit  -   712   976   84   92,908   94,680 
Multifamily properties  36,115   103   538   -   -   36,756 
Other residential real estate  38,725   1,357   10,843   -   83,907   134,832 
                         
Nonresidential real estate                        
Owner occupied properties  221,941   7,754   23,073   -   -   252,768 
Non owner occupied properties  246,614   8,902   15,201   -   -   270,717 
Construction  90,297   3,398   11,093   -   -   104,788 
                         
Consumer                        
Credit card balances  -   -   -   -   6,492   6,492 
Other consumer  -   -   22   -   10,104   10,126 
Municipal obligations  27,066   -   -   -   -   27,066 
                         
Total $831,152  $31,910  $74,844  $84  $193,411  $1,131,401 

 

(1) Not rated loans represent the homogenous pools risk category.