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Loans and allowance for credit losses | 9 Months Ended
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Sep. 30, 2012
Receivables [Abstract] |
Financing Receivables [Text Block] | Note 4 – Loans and allowance for credit losses The Company makes residential mortgage, commercial and consumer loans to customers primarily in Talbot County, Queen Anne’s County, Kent County, Caroline County and Dorchester County in Maryland and in Kent County, Delaware. The following table provides information about the principal classes of the loan portfolio at September 30, 2012 and December 31, 2011.
(Dollars in thousands) |  | September 30, 2012 |  |  | December 31, 2011 |
Construction |  | $ | 108,721 |  |  | $ | 119,883 |
Residential real estate |  |  | 302,449 |  |  |  | 321,604 |
Commercial real estate |  |  | 321,817 |  |  |  | 315,439 |
Commercial |  |  | 61,531 |  |  |  | 69,485 |
Consumer |  |  | 13,512 |  |  |  | 14,639 |
Total loans |  |  | 808,030 |  |  |  | 841,050 |
Allowance for credit losses |  |  | (12,955 | ) |  |  | (14,288 | )
Total loans, net |  | $ | 795,075 |  |  | $ | 826,762 |
Loans are stated at their principal amount outstanding net of any deferred fees and costs. Interest income on loans is accrued at the contractual rate based on the principal amount outstanding. Fees charged and costs capitalized for originating loans are being amortized substantially on the interest method over the term of the loan. A loan is placed on nonaccrual when it is specifically determined to be impaired or when principal or interest is delinquent for 90 days or more, unless the loan is well secured and in the process of collection. Any unpaid interest previously accrued on those loans is reversed from income. Interest payments received on nonaccrual loans are applied as a reduction of the loan principal balance unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. A loan is considered impaired if it is probable that the Company will not collect all principal and interest payments according to the loan’s contractual terms. An impaired loan may show deficiencies in the borrower’s overall financial condition, payment history, support available from financial guarantors and/or the fair market value of collateral. The impairment of a loan is measured at the present value of expected future cash flows using the loan’s effective interest rate, or at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. Generally, the Company measures impairment on such loans by reference to the fair value of the collateral. Income on impaired loans is recognized on a cash basis, and payments are first applied against the principal balance outstanding (i.e., placing impaired loans on nonaccrual status). Generally, interest income is not recognized on specific impaired loans unless the likelihood of further loss is remote. The allowance for credit losses includes specific reserves related to impaired loans. Impaired loans do not include groups of smaller balance homogenous loans such as residential mortgage and consumer installment loans that are evaluated collectively for impairment. Reserves for probable credit losses related to these loans are based on historical loss ratios and are included in the formula portion of the allowance for credit losses. Loans are evaluated on a case-by-case basis for impairment. Once the amount of impairment has been determined, the uncollectible portion is charged off. As seen in the table below, the difference between the unpaid principal balance and the recorded investment is the amount of partial charge-offs that have been taken. In some cases, a specific allocation within the allowance for credit losses is made until such time that a charge-off is made. A loan is considered a troubled debt restructuring if a borrower is experiencing financial difficulties and a creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. The following tables provide information on impaired loans and any related allowance by loan class as of September 30, 2012 and December 31, 2011.
(Dollars in thousands) |  | Unpaid principal balance |  |  | Recorded investment with no allowance |  |  | Recorded investment with an allowance |  |  | Related allowance |  |  | Year-to-date average recorded investment |  |  | Quarter-to-date average recorded investment |
September 30, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impaired nonaccrual loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  | $ | 15,509 |  |  | $ | 11,456 |  |  | $ | 19 |  |  | $ | 19 |  |  | $ | 13,717 |  |  | $ | 12,770 |
Residential real estate |  |  | 20,424 |  |  |  | 14,440 |  |  |  | - |  |  |  | - |  |  |  | 18,920 |  |  |  | 17,092 |
Commercial real estate |  |  | 16,149 |  |  |  | 11,916 |  |  |  | - |  |  |  | - |  |  |  | 12,567 |  |  |  | 11,446 |
Commercial |  |  | 2,124 |  |  |  | 1,557 |  |  |  | - |  |  |  | - |  |  |  | 1,760 |  |  |  | 1,572 |
Consumer |  |  | 58 |  |  |  | 54 |  |  |  | - |  |  |  | - |  |  |  | 50 |  |  |  | 55 |
Total |  |  | 54,264 |  |  |  | 39,423 |  |  |  | 19 |  |  |  | 19 |  |  |  | 47,014 |  |  |  | 42,935 |
Impaired accruing restructured loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | 28,479 |  |  |  | 28,479 |  |  |  | - |  |  |  | - |  |  |  | 17,304 |  |  |  | 22,779 |
Residential real estate |  |  | 5,231 |  |  |  | 5,231 |  |  |  | - |  |  |  | - |  |  |  | 4,258 |  |  |  | 5,120 |
Commercial real estate |  |  | 16,986 |  |  |  | 16,986 |  |  |  | - |  |  |  | - |  |  |  | 14,173 |  |  |  | 16,032 |
Commercial |  |  | 89 |  |  |  | 89 |  |  |  | - |  |  |  | - |  |  |  | 74 |  |  |  | 79 |
Consumer |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total |  |  | 50,785 |  |  |  | 50,785 |  |  |  | - |  |  |  | - |  |  |  | 35,809 |  |  |  | 44,010 |
Total impaired loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | 43,988 |  |  |  | 39,935 |  |  |  | 19 |  |  |  | 19 |  |  |  | 31,021 |  |  |  | 35,549 |
Residential real estate |  |  | 25,655 |  |  |  | 19,671 |  |  |  | - |  |  |  | - |  |  |  | 23,178 |  |  |  | 22,212 |
Commercial real estate |  |  | 33,135 |  |  |  | 28,902 |  |  |  | - |  |  |  | - |  |  |  | 26,740 |  |  |  | 27,478 |
Commercial |  |  | 2,213 |  |  |  | 1,646 |  |  |  | - |  |  |  | - |  |  |  | 1,834 |  |  |  | 1,651 |
Consumer |  |  | 58 |  |  |  | 54 |  |  |  | - |  |  |  | - |  |  |  | 50 |  |  |  | 55 |
Total |  | $ | 105,049 |  |  | $ | 90,208 |  |  | $ | 19 |  |  | $ | 19 |  |  | $ | 82,823 |  |  | $ | 86,945 |
(Dollars in thousands) |  | Unpaid principal balance |  |  | Recorded investment with no allowance |  |  | Recorded investment with an allowance |  |  | Related allowance |  |  | Year-to-date average recorded investment |  |  | Quarter-to-date average recorded investment |
December 31, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impaired nonaccrual loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  | $ | 22,883 |  |  | $ | 14,005 |  |  | $ | 1,550 |  |  | $ | 170 |  |  | $ | 16,555 |  |  | $ | 16,367 |
Residential real estate |  |  | 22,431 |  |  |  | 16,925 |  |  |  | 3,181 |  |  |  | 1,296 |  |  |  | 15,430 |  |  |  | 18,118 |
Commercial real estate |  |  | 17,372 |  |  |  | 14,012 |  |  |  | - |  |  |  | - |  |  |  | 14,624 |  |  |  | 13,545 |
Commercial |  |  | 2,119 |  |  |  | 1,669 |  |  |  | - |  |  |  | - |  |  |  | 2,539 |  |  |  | 1,680 |
Consumer |  |  | 30 |  |  |  | 28 |  |  |  | - |  |  |  | - |  |  |  | 32 |  |  |  | 34 |
Total |  |  | 64,835 |  |  |  | 46,639 |  |  |  | 4,731 |  |  |  | 1,466 |  |  |  | 49,180 |  |  |  | 49,744 |
Impaired accruing restructured loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | 11,781 |  |  |  | 11,781 |  |  |  | - |  |  |  | - |  |  |  | 10,663 |  |  |  | 10,930 |
Residential real estate |  |  | 3,792 |  |  |  | 3,792 |  |  |  | - |  |  |  | - |  |  |  | 6,093 |  |  |  | 3,156 |
Commercial real estate |  |  | 9,566 |  |  |  | 9,566 |  |  |  | - |  |  |  | - |  |  |  | 7,960 |  |  |  | 9,949 |
Commercial |  |  | 69 |  |  |  | 69 |  |  |  | - |  |  |  | - |  |  |  | 111 |  |  |  | 35 |
Consumer |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total |  |  | 25,208 |  |  |  | 25,208 |  |  |  | - |  |  |  | - |  |  |  | 24,827 |  |  |  | 24,070 |
Total impaired loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | 34,664 |  |  |  | 25,786 |  |  |  | 1,550 |  |  |  | 170 |  |  |  | 27,218 |  |  |  | 27,297 |
Residential real estate |  |  | 26,223 |  |  |  | 20,717 |  |  |  | 3,181 |  |  |  | 1,296 |  |  |  | 21,523 |  |  |  | 21,274 |
Commercial real estate |  |  | 26,938 |  |  |  | 23,578 |  |  |  | - |  |  |  | - |  |  |  | 22,584 |  |  |  | 23,494 |
Commercial |  |  | 2,188 |  |  |  | 1,738 |  |  |  | - |  |  |  | - |  |  |  | 2,650 |  |  |  | 1,715 |
Consumer |  |  | 30 |  |  |  | 28 |  |  |  | - |  |  |  | - |  |  |  | 32 |  |  |  | 34 |
Total |  | $ | 90,043 |  |  | $ | 71,847 |  |  | $ | 4,731 |  |  | $ | 1,466 |  |  | $ | 74,007 |  |  | $ | 73,814 |
The following tables provide information on troubled debt restructurings by loan class as of September 30, 2012 and December 31, 2011. The amounts include nonaccrual troubled debt restructurings.
(Dollars in thousands) |  | Number of contracts |  |  | Premodification outstanding recorded investment |  |  | Postmodification outstanding recorded investment |
Troubled debt restructurings: |  |  |  |  |  |  |  |  |  |  |  |
September 30, 2012 |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | 19 |  |  | $ | 33,277 |  |  | $ | 29,518 |
Residential real estate |  |  | 28 |  |  |  | 14,145 |  |  |  | 7,614 |
Commercial real estate |  |  | 22 |  |  |  | 24,065 |  |  |  | 20,418 |
Commercial |  |  | 3 |  |  |  | 149 |  |  |  | 126 |
Consumer |  |  | 1 |  |  |  | 30 |  |  |  | 27 |
Total |  |  | 73 |  |  | $ | 71,666 |  |  | $ | 57,703 |
December 31, 2011 |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | 9 |  |  | $ | 12,981 |  |  | $ | 12,539 |
Residential real estate |  |  | 20 |  |  |  | 11,471 |  |  |  | 10,359 |
Commercial real estate |  |  | 20 |  |  |  | 15,874 |  |  |  | 14,175 |
Commercial |  |  | 1 |  |  |  | 69 |  |  |  | 69 |
Consumer |  |  | - |  |  |  | - |  |  |  | - |
Total |  |  | 50 |  |  | $ | 40,395 |  |  | $ | 37,142 |
(Dollars in thousands) |  | Number of contracts |  |  | Recorded investment |
Troubled debt restructurings that subsequently defaulted (1): |  |  |  |  |  |  |  |
September 30, 2012 |  |  |  |  |  |  |  |
Construction |  |  | 7 |  |  | $ | 2,129 |
Residential real estate |  |  | 13 |  |  |  | 2,902 |
Commercial real estate |  |  | 6 |  |  |  | 3,433 |
Commercial |  |  | 1 |  |  |  | 36 |
Consumer |  |  | 1 |  |  |  | 27 |
Total |  |  | 28 |  |  | $ | 8,527 |
December 31, 2011 |  |  |  |  |  |  |  |
Construction |  |  | 3 |  |  | $ | 758 |
Residential real estate |  |  | 10 |  |  |  | 7,353 |
Commercial real estate |  |  | 5 |  |  |  | 6,751 |
Commercial |  |  | - |  |  |  | - |
Consumer |  |  | - |  |  |  | - |
Total |  |  | 18 |  |  | $ | 14,862 |
(1) Generally, a loan is considered in default when principal or interest is past due 30 days or more. Management uses risk ratings as part of its monitoring of the credit quality in the Company’s loan portfolio. Loans that are identified as special mention, substandard and doubtful are adversely rated and are assigned higher risk ratings than favorably rated loans. The following tables provide information on loan risk ratings as of September 30, 2012 and December 31, 2011.
(Dollars in thousands) |  | Pass/Performing |  |  | Special mention |  |  | Substandard |  |  | Doubtful |  |  | Nonaccrual |  |  | Total |
September 30, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  | $ | 43,334 |  |  | $ | 31,359 |  |  | $ | 22,553 |  |  | $ | - |  |  | $ | 11,475 |  |  | $ | 108,721 |
Residential real estate |  |  | 246,805 |  |  |  | 24,191 |  |  |  | 16,580 |  |  |  | 433 |  |  |  | 14,440 |  |  |  | 302,449 |
Commercial real estate |  |  | 254,339 |  |  |  | 30,873 |  |  |  | 24,689 |  |  |  | - |  |  |  | 11,916 |  |  |  | 321,817 |
Commercial |  |  | 54,488 |  |  |  | 3,870 |  |  |  | 1,556 |  |  |  | 60 |  |  |  | 1,557 |  |  |  | 61,531 |
Consumer |  |  | 13,252 |  |  |  | 120 |  |  |  | 86 |  |  |  | - |  |  |  | 54 |  |  |  | 13,512 |
Total |  | $ | 612,218 |  |  | $ | 90,413 |  |  | $ | 65,464 |  |  | $ | 493 |  |  | $ | 39,442 |  |  | $ | 808,030 |
(Dollars in thousands) |  | Pass/Performing |  |  | Special mention |  |  | Substandard |  |  | Doubtful |  |  | Nonaccrual |  |  | Total |
December 31, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  | $ | 50,403 |  |  | $ | 30,373 |  |  | $ | 23,552 |  |  | $ | - |  |  | $ | 15,555 |  |  | $ | 119,883 |
Residential real estate |  |  | 261,910 |  |  |  | 13,467 |  |  |  | 25,676 |  |  |  | 445 |  |  |  | 20,106 |  |  |  | 321,604 |
Commercial real estate |  |  | 257,247 |  |  |  | 16,001 |  |  |  | 28,179 |  |  |  | - |  |  |  | 14,012 |  |  |  | 315,439 |
Commercial |  |  | 59,178 |  |  |  | 3,813 |  |  |  | 4,748 |  |  |  | 77 |  |  |  | 1,669 |  |  |  | 69,485 |
Consumer |  |  | 14,520 |  |  |  | 32 |  |  |  | 59 |  |  |  | - |  |  |  | 28 |  |  |  | 14,639 |
Total |  | $ | 643,258 |  |  | $ | 63,686 |  |  | $ | 82,214 |  |  | $ | 522 |  |  | $ | 51,370 |  |  | $ | 841,050 |
The following tables provide information on the aging of the loan portfolio as of September 30, 2012 and December 31, 2011.
|  | Accruing |  |  |  |  |  |  |
(Dollars in thousands) |  | Current |  |  | 30-59 days past due |  |  | 60-89 days past due |  |  | 90 days or more past due |  |  | Total past due |  |  | Nonaccrual |  |  | Total |
September 30, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  | $ | 96,156 |  |  | $ | 1,090 |  |  | $ | - |  |  | $ | - |  |  | $ | 1,090 |  |  | $ | 11,475 |  |  | $ | 108,721 |
Residential real estate |  |  | 281,610 |  |  |  | 4,274 |  |  |  | 1,113 |  |  |  | 1,012 |  |  |  | 6,399 |  |  |  | 14,440 |  |  |  | 302,449 |
Commercial real estate |  |  | 303,008 |  |  |  | 971 |  |  |  | 2,371 |  |  |  | 3,551 |  |  |  | 6,893 |  |  |  | 11,916 |  |  |  | 321,817 |
Commercial |  |  | 59,756 |  |  |  | 69 |  |  |  | 82 |  |  |  | 67 |  |  |  | 218 |  |  |  | 1,557 |  |  |  | 61,531 |
Consumer |  |  | 13,228 |  |  |  | 174 |  |  |  | 11 |  |  |  | 45 |  |  |  | 230 |  |  |  | 54 |  |  |  | 13,512 |
Total |  | $ | 753,758 |  |  | $ | 6,578 |  |  | $ | 3,577 |  |  | $ | 4,675 |  |  | $ | 14,830 |  |  | $ | 39,442 |  |  | $ | 808,030 |
Percent of total loans |  |  | 93.3 | % |  |  | 0.8 | % |  |  | 0.4 | % |  |  | 0.6 | % |  |  | 1.8 | % |  |  | 4.9 | % |  |  |  |
|  | Accruing |  |  |  |  |  |  |
(Dollars in thousands) |  | Current |  |  | 30-59 days past due |  |  | 60-89 days past due |  |  | 90 days or more past due |  |  | Total past due |  |  | Nonaccrual |  |  | Total |
December 31, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  | $ | 102,441 |  |  | $ | 1,246 |  |  | $ | 316 |  |  | $ | 325 |  |  | $ | 1,887 |  |  | $ | 15,555 |  |  | $ | 119,883 |
Residential real estate |  |  | 289,459 |  |  |  | 4,417 |  |  |  | 5,291 |  |  |  | 2,331 |  |  |  | 12,039 |  |  |  | 20,106 |  |  |  | 321,604 |
Commercial real estate |  |  | 289,760 |  |  |  | 10,073 |  |  |  | 1,594 |  |  |  | - |  |  |  | 11,667 |  |  |  | 14,012 |  |  |  | 315,439 |
Commercial |  |  | 64,581 |  |  |  | 1,350 |  |  |  | 1,819 |  |  |  | 66 |  |  |  | 3,235 |  |  |  | 1,669 |  |  |  | 69,485 |
Consumer |  |  | 14,492 |  |  |  | 112 |  |  |  | 6 |  |  |  | 1 |  |  |  | 119 |  |  |  | 28 |  |  |  | 14,639 |
Total |  | $ | 760,733 |  |  | $ | 17,198 |  |  | $ | 9,026 |  |  | $ | 2,723 |  |  | $ | 28,947 |  |  | $ | 51,370 |  |  | $ | 841,050 |
Percent of total loans |  |  | 90.5 | % |  |  | 2.0 | % |  |  | 1.1 | % |  |  | 0.3 | % |  |  | 3.4 | % |  |  | 6.1 | % |  |  |  |
The Company has established an allowance for credit losses, which is increased by provisions charged against earnings and recoveries of previously charged-off debts and is decreased by current period charge-offs of uncollectible debts. Management evaluates the adequacy of the allowance for credit losses on a quarterly basis and adjusts the provision for credit losses based on this analysis. Allocation of a portion of the allowance to one loan class does not preclude its availability to absorb losses in other loan classes. The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for the three months ended September 30, 2012 and 2011.
(Dollars in thousands) |  | Construction |  |  | Residential real estate |  |  | Commercial real estate |  |  | Commercial |  |  | Consumer |  |  | Unallocated |  |  | Total |
For the three months ended September 30, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 2,845 |  |  | $ | 4,237 |  |  | $ | 3,952 |  |  | $ | 1,063 |  |  | $ | 485 |  |  | $ | 408 |  |  | $ | 12,990 |
Charge-offs |  |  | (3,222 | ) |  |  | (2,323 | ) |  |  | (742 | ) |  |  | (73 | ) |  |  | (31 | ) |  |  | - |  |  |  | (6,391 | )
Recoveries |  |  | 5 |  |  |  | 5 |  |  |  | 116 |  |  |  | 22 |  |  |  | 8 |  |  |  | - |  |  |  | 156 |
Net charge-offs |  |  | (3,217 | ) |  |  | (2,318 | ) |  |  | (626 | ) |  |  | (51 | ) |  |  | (23 | ) |  |  | - |  |  |  | (6,235 | )
Provision |  |  | 3,699 |  |  |  | 2,268 |  |  |  | 275 |  |  |  | 524 |  |  |  | (158 | ) |  |  | (408 | ) |  |  | 6,200 |
Ending balance |  | $ | 3,327 |  |  | $ | 4,187 |  |  | $ | 3,601 |  |  | $ | 1,536 |  |  | $ | 304 |  |  | $ | - |  |  | $ | 12,955 |
(Dollars in thousands) |  | Construction |  |  | Residential real estate |  |  | Commercial real estate |  |  | Commercial |  |  | Consumer |  |  | Unallocated |  |  | Total |
For the three months ended September 30, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 3,533 |  |  | $ | 4,184 |  |  | $ | 5,251 |  |  | $ | 2,710 |  |  | $ | 605 |  |  | $ | 75 |  |  | $ | 16,358 |
Charge-offs |  |  | (1,005 | ) |  |  | (2,859 | ) |  |  | (1,385 | ) |  |  | (1,519 | ) |  |  | (33 | ) |  |  | - |  |  |  | (6,801 | )
Recoveries |  |  | - |  |  |  | 38 |  |  |  | 229 |  |  |  | 47 |  |  |  | 19 |  |  |  | - |  |  |  | 333 |
Net charge-offs |  |  | (1,005 | ) |  |  | (2,821 | ) |  |  | (1,156 | ) |  |  | (1,472 | ) |  |  | (14 | ) |  |  | - |  |  |  | (6,468 | )
Provision |  |  | 870 |  |  |  | 2,679 |  |  |  | (404 | ) |  |  | 315 |  |  |  | 19 |  |  |  | 171 |  |  |  | 3,650 |
Ending balance |  | $ | 3,398 |  |  | $ | 4,042 |  |  | $ | 3,691 |  |  | $ | 1,553 |  |  | $ | 610 |  |  | $ | 246 |  |  | $ | 13,540 |
The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for the nine months ended September 30, 2012 and 2011.
(Dollars in thousands) |  | Construction |  |  | Residential real estate |  |  | Commercial real estate |  |  | Commercial |  |  | Consumer |  |  | Unallocated |  |  | Total |
For the nine months ended September 30, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 3,745 |  |  | $ | 5,014 |  |  | $ | 3,415 |  |  | $ | 1,498 |  |  | $ | 594 |  |  | $ | 22 |  |  | $ | 14,288 |
Charge-offs |  |  | (5,008 | ) |  |  | (7,996 | ) |  |  | (2,177 | ) |  |  | (4,513 | ) |  |  | (208 | ) |  |  | - |  |  |  | (19,902 | )
Recoveries |  |  | 5 |  |  |  | 99 |  |  |  | 123 |  |  |  | 230 |  |  |  | 17 |  |  |  | - |  |  |  | 474 |
Net charge-offs |  |  | (5,003 | ) |  |  | (7,897 | ) |  |  | (2,054 | ) |  |  | (4,283 | ) |  |  | (191 | ) |  |  | - |  |  |  | (19,428 | )
Provision |  |  | 4,585 |  |  |  | 7,070 |  |  |  | 2,240 |  |  |  | 4,321 |  |  |  | (99 | ) |  |  | (22 | ) |  |  | 18,095 |
Ending balance |  | $ | 3,327 |  |  | $ | 4,187 |  |  | $ | 3,601 |  |  | $ | 1,536 |  |  | $ | 304 |  |  | $ | - |  |  | $ | 12,955 |
(Dollars in thousands) |  | Construction |  |  | Residential real estate |  |  | Commercial real estate |  |  | Commercial |  |  | Consumer |  |  | Unallocated |  |  | Total |
For the nine months ended September 30, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 3,327 |  |  | $ | 4,833 |  |  | $ | 3,665 |  |  | $ | 1,422 |  |  | $ | 637 |  |  | $ | 343 |  |  | $ | 14,227 |
Charge-offs |  |  | (2,419 | ) |  |  | (7,340 | ) |  |  | (3,878 | ) |  |  | (3,290 | ) |  |  | (148 | ) |  |  | - |  |  |  | (17,075 | )
Recoveries |  |  | 49 |  |  |  | 106 |  |  |  | 234 |  |  |  | 504 |  |  |  | 60 |  |  |  | - |  |  |  | 953 |
Net charge-offs |  |  | (2,370 | ) |  |  | (7,234 | ) |  |  | (3,644 | ) |  |  | (2,786 | ) |  |  | (88 | ) |  |  | - |  |  |  | (16,122 | )
Provision |  |  | 2,441 |  |  |  | 6,443 |  |  |  | 3,670 |  |  |  | 2,917 |  |  |  | 61 |  |  |  | (97 | ) |  |  | 15,435 |
Ending balance |  | $ | 3,398 |  |  | $ | 4,042 |  |  | $ | 3,691 |  |  | $ | 1,553 |  |  | $ | 610 |  |  | $ | 246 |  |  | $ | 13,540 |
The following tables include impairment information relating to loans and the allowance for credit losses as of September 30, 2012 and 2011.
(Dollars in thousands) |  | Construction |  |  | Residential real estate |  |  | Commercial real estate |  |  | Commercial |  |  | Consumer |  |  | Unallocated |  |  | Total |
September 30, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment |  | $ | 39,954 |  |  | $ | 19,671 |  |  | $ | 28,902 |  |  | $ | 1,646 |  |  | $ | 54 |  |  | $ | - |  |  | $ | 90,227 |
Loans collectively evaluated for impairment |  |  | 68,767 |  |  |  | 282,778 |  |  |  | 292,915 |  |  |  | 59,885 |  |  |  | 13,458 |  |  |  | - |  |  |  | 717,803 |
Total loans |  | $ | 108,721 |  |  | $ | 302,449 |  |  | $ | 321,817 |  |  | $ | 61,531 |  |  | $ | 13,512 |  |  | $ | - |  |  | $ | 808,030 |
Allowance for credit losses allocated to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment |  | $ | 19 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 19 |
Loans collectively evaluated for impairment |  |  | 3,308 |  |  |  | 4,187 |  |  |  | 3,601 |  |  |  | 1,536 |  |  |  | 304 |  |  |  | - |  |  |  | 12,936 |
Total allowance for credit losses |  | $ | 3,327 |  |  | $ | 4,187 |  |  | $ | 3,601 |  |  | $ | 1,536 |  |  | $ | 304 |  |  | $ | - |  |  | $ | 12,955 |
(Dollars in thousands) |  | Construction |  |  | Residential real estate |  |  | Commercial real estate |  |  | Commercial |  |  | Consumer |  |  | Unallocated |  |  | Total |
September 30, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment |  | $ | 27,426 |  |  | $ | 19,944 |  |  | $ | 23,410 |  |  | $ | 1,690 |  |  | $ | 40 |  |  | $ | - |  |  | $ | 72,510 |
Loans collectively evaluated for impairment |  |  | 99,593 |  |  |  | 307,811 |  |  |  | 298,134 |  |  |  | 69,792 |  |  |  | 14,726 |  |  |  | - |  |  |  | 790,056 |
Total loans |  | $ | 127,019 |  |  | $ | 327,755 |  |  | $ | 321,544 |  |  | $ | 71,482 |  |  | $ | 14,766 |  |  | $ | - |  |  | $ | 862,566 |
Allowance for credit losses allocated to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment |  | $ | - |  |  | $ | 90 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 90 |
Loans collectively evaluated for impairment |  |  | 3,398 |  |  |  | 3,952 |  |  |  | 3,691 |  |  |  | 1,553 |  |  |  | 610 |  |  |  | 246 |  |  |  | 13,450 |
Total allowance for credit losses |  | $ | 3,398 |  |  | $ | 4,042 |  |  | $ | 3,691 |  |  | $ | 1,553 |  |  | $ | 610 |  |  | $ | 246 |  |  | $ | 13,540 |

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- Definition The entire disclosure for financing receivables. Examples of financing receivables include, but are not limited to, loans, trade accounts receivables, notes receivable, credit cards, and receivables relating to a lessor's right(s) to payment(s) from a lease other than an operating lease that is recognized as assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 55 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=7880640&loc=SL6953791-111525 + Details
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- Details
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