Note 5 – Allowance for Loan and Lease Losses

The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method for the three and nine months ended September 30, 2013 and 2012 and the twelve months ended December 31, 2012:

	Three Months Ended September 30, 2013
(in thousands)	Commercial Construction			Commercial Secured by Real Estate		Equipment Lease Financing		Commercial Other		Real Estate Construction		Real Estate Mortgage		Home Equity		Consumer Direct		Consumer Indirect		Total
Allowance for loan losses
Beginning balance	$	3,835		$	14,162	$	117	$	4,793	$	368	$	4,950	$	576	$	1,134	$	3,666	$	33,601
Provision charged to expense		(101	)		448		3		551		59		202		73		272		622		2,129
Losses charged off		0			477		0		464		49		216		62		336		915		2,519
Recoveries		151			13		0		102		4		11		1		105		415		802
Ending balance	$	3,885		$	14,146	$	120	$	4,982	$	382	$	4,947	$	588	$	1,175	$	3,788	$	34,013

Ending balance:
Individually evaluated for impairment	$	1,827		$	1,295	$	0	$	158	$	0	$	0	$	0	$	0	$	0	$	3,280
Collectively evaluated for impairment	$	2,058		$	12,851	$	120	$	4,824	$	382	$	4,947	$	588	$	1,175	$	3,788	$	30,733

Loans
Ending balance:
Individually evaluated for impairment	$	10,143		$	36,477	$	0	$	15,644	$	0	$	1,028	$	0	$	0	$	0	$	63,292
Collectively evaluated for impairment	$	97,797		$	841,458	$	9,380	$	360,842	$	53,545	$	692,781	$	82,498	$	123,960	$	290,812	$	2,553,073

	Nine Months Ended September 30, 2013
(in thousands)	Commercial Construction		Commercial Secured by Real Estate		Equipment Lease Financing			Commercial Other		Real Estate Construction		Real Estate Mortgage		Home Equity		Consumer Direct		Consumer Indirect		Total
Allowance for loan losses
Beginning balance	$	4,033	$	13,541	$	126		$	5,469	$	376	$	4,767	$	563	$	1,102	$	3,268	$	33,245
Provision charged to expense		806		2,064		(6	)		937		89		648		250		611		1,950		7,349
Losses charged off		1,112		1,495		0			1,768		87		498		235		927		2,700		8,822
Recoveries		158		36		0			344		4		30		10		389		1,270		2,241
Ending balance	$	3,885	$	14,146	$	120		$	4,982	$	382	$	4,947	$	588	$	1,175	$	3,788	$	34,013

Ending balance:
Individually evaluated for impairment	$	1,827	$	1,295	$	0		$	158	$	0	$	0	$	0	$	0	$	0	$	3,280
Collectively evaluated for impairment	$	2,058	$	12,851	$	120		$	4,824	$	382	$	4,947	$	588	$	1,175	$	3,788	$	30,733

Loans
Ending balance:
Individually evaluated for impairment	$	10,143	$	36,477	$	0		$	15,644	$	0	$	1,028	$	0	$	0	$	0	$	63,292
Collectively evaluated for impairment	$	97,797	$	841,458	$	9,380		$	360,842	$	53,545	$	692,781	$	82,498	$	123,960	$	290,812	$	2,553,073

	Twelve Months Ended December 31, 2012
(in thousands)	Commercial Construction		Commercial Secured by Real Estate		Equipment Lease Financing		Commercial Other		Real Estate Construction		Real Estate Mortgage		Home Equity		Consumer Direct		Consumer Indirect			Total
Allowance for loan losses
Balance, beginning of year	$	4,023	$	11,753	$	112	$	5,608	$	354	$	4,302	$	562	$	917	$	5,540		$	33,171
Provision charged to expense		1,009		3,520		14		2,330		183		1,437		238		892		(173	)		9,450
Losses charged off		1,034		2,035		0		3,233		189		1,123		248		1,245		3,483			12,590
Recoveries		35		303		0		764		28		151		11		538		1,384			3,214
Balance, end of year	$	4,033	$	13,541	$	126	$	5,469	$	376	$	4,767	$	563	$	1,102	$	3,268		$	33,245

Ending balance:
Individually evaluated for impairment	$	1,820	$	1,090	$	0	$	338	$	0	$	0	$	0	$	0	$	0		$	3,248
Collectively evaluated for impairment	$	2,213	$	12,451	$	126	$	5,131	$	376	$	4,767	$	563	$	1,102	$	3,268		$	29,997

Loans
Ending balance:
Individually evaluated for impairment	$	9,395	$	38,113	$	0	$	14,295	$	0	$	695	$	0	$	0	$	0		$	62,498
Collectively evaluated for impairment	$	110,052	$	769,100	$	9,246	$	362,053	$	55,041	$	696,233	$	82,292	$	122,581	$	281,477		$	2,488,075

	Three Months Ended September 30, 2012
(in thousands)	Commercial Construction		Commercial Secured by Real Estate		Equipment Lease Financing			Commercial Other		Real Estate Construction			Real Estate Mortgage		Home Equity		Consumer Direct			Consumer Indirect		Total
Allowance for loan losses
Beginning balance	$	3,931	$	13,262	$	142		$	5,487	$	390		$	4,472	$	574	$	857		$	4,019	$	33,134
Provision charged to expense		1,249		698		(5	)		529		(8	)		407		26		(19	)		42		2,919
Losses charged off		787		658		0			766		18			411		41		173			810		3,664
Recoveries		67		87		0			184		3			17		0		122			320		800
Ending balance	$	4,460	$	13,389	$	137		$	5,434	$	367		$	4,485	$	559	$	787		$	3,571	$	33,189

Ending balance:
Individually evaluated for impairment	$	2,321	$	938	$	0		$	315	$	0		$	0	$	0	$	0		$	0	$	3,574
Collectively evaluated for impairment	$	2,139	$	12,451	$	137		$	5,119	$	367		$	4,485	$	559	$	787		$	3,571	$	29,615

Loans
Ending balance:
Individually evaluated for impairment	$	10,102	$	37,505	$	0		$	12,618	$	0		$	666	$	0	$	0		$	0	$	60,891
Collectively evaluated for impairment	$	104,989	$	783,420	$	10,167		$	366,690	$	54,431		$	663,663	$	82,724	$	126,005		$	298,557	$	2,490,646

	Nine Months Ended September 30, 2012
(in thousands)	Commercial Construction		Commercial Secured by Real Estate		Equipment Lease Financing		Commercial Other		Real Estate Construction		Real Estate Mortgage		Home Equity		Consumer Direct			Consumer Indirect			Total
Allowance for loan losses
Beginning balance	$	4,023	$	11,753	$	112	$	5,608	$	354	$	4,302	$	562	$	917		$	5,540		$	33,171
Provision charged to expense		1,500		3,148		25		1,454		189		892		119		(67	)		(756	)		6,504
Losses charged off		1,262		1,645		0		2,161		189		833		123		522			2,262			8,997
Recoveries		199		133		0		533		13		124		1		459			1,049			2,511
Ending balance	$	4,460	$	13,389	$	137	$	5,434	$	367	$	4,485	$	559	$	787		$	3,571		$	33,189

Ending balance:
Individually evaluated for impairment	$	2,321	$	938	$	0	$	315	$	0	$	0	$	0	$	0		$	0		$	3,574
Collectively evaluated for impairment	$	2,139	$	12,451	$	137	$	5,119	$	367	$	4,485	$	559	$	787		$	3,571		$	29,615

Loans
Ending balance:
Individually evaluated for impairment	$	10,102	$	37,505	$	0	$	12,618	$	0	$	666	$	0	$	0		$	0		$	60,891
Collectively evaluated for impairment	$	104,989	$	783,420	$	10,167	$	366,690	$	54,431	$	663,663	$	82,724	$	126,005		$	298,557		$	2,490,646