Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2012

Allowance for Loan and Lease Losses, Provision for Loss, Net [Abstract]

Allowance for loan losses by class of financing receivable and allowance

A breakdown of the allowance for loan losses as of June 30, 2012, December 31, 2011, and June 30, 2011, by class of financing receivable and allowance element, is presented in the following tables:

As of June 30, 2012	Specific Reserves on Loans Evaluated Individually for Impairment		General Reserves on Loans Based on Historical Loss Experience		Reserves for Qualitative Factors		Unallocated Reserves		Total Reserves
Commercial
Real estate	$	1,133,000	$	2,685,000	$	1,746,000	$	-	$	5,564,000
Construction		787,000		355,000		231,000		-		1,373,000
Other		932,000		935,000		609,000		-		2,476,000
Municipal		-		-		19,000		-		19,000
Residential
Term		966,000		165,000		456,000		-		1,587,000
Construction		48,000		2,000		8,000		-		58,000
Home equity line of credit		300,000		155,000		354,000		-		809,000
Consumer		11,000		351,000		241,000		-		603,000
Unallocated		-		-		-		1,895,000		1,895,000
	$	4,177,000	$	4,648,000	$	3,664,000	$	1,895,000	$	14,384,000

As of December 31, 2011	Specific Reserves on Loans Evaluated Individually for Impairment		General Reserves on Loans Based on Historical Loss Experience		Reserves for Qualitative Factors		Unallocated Reserves		Total Reserves
Commercial
Real estate	$	808,000	$	2,578,000	$	2,273,000	$	-	$	5,659,000
Construction		33,000		332,000		293,000		-		658,000
Other		402,000		883,000		778,000		-		2,063,000
Municipal		-		-		19,000		-		19,000
Residential
Term		478,000		222,000		459,000		-		1,159,000
Construction		235,000		6,000		14,000		-		255,000
Home equity line of credit		91,000		149,000		355,000		-		595,000
Consumer		11,000		331,000		242,000		-		584,000
Unallocated		-		-		-		2,008,000		2,008,000
	$	2,058,000	$	4,501,000	$	4,433,000	$	2,008,000	$	13,000,000

As of June 30, 2011	Specific Reserves on Loans Evaluated Individually for Impairment		General Reserves on Loans Based on Historical Loss Experience		Reserves for Qualitative Factors		Unallocated Reserves		Total Reserves
Commercial
Real estate	$	613,000	$	2,463,000	$	3,851,000	$	-	$	6,927,000
Construction		-		274,000		428,000		-		702,000
Other		857,000		962,000		1,504,000		-		3,323,000
Municipal		-		-		19,000		-		19,000
Residential
Term		265,000		505,000		586,000		-		1,356,000
Construction		-		16,000		19,000		-		35,000
Home equity line of credit		165,000		85,000		402,000		-		652,000
Consumer		65,000		264,000		335,000		-		664,000
Unallocated		-		-		-		1,356,000		1,356,000
	$	1,965,000	$	4,569,000	$	7,144,000	$	1,356,000	$	15,034,000

Summary of Risk Ratings for Loans

The following table summarizes the risk ratings for the Company's commercial real estate, commercial construction, commercial other, and municipal loans as of June 30, 2012:

	Commercial Real Estate		Commercial Construction		Commercial Other		Municipal Loans		All Risk- Rated Loans
1 Strong	$	21,000	$	-	$	284,000	$	1,822,000	$	2,127,000
2 Above Average		19,319,000		170,000		4,601,000		7,933,000		32,023,000
3 Satisfactory		36,207,000		1,751,000		13,541,000		3,770,000		55,269,000
4 Average		99,855,000		20,932,000		32,700,000		2,564,000		156,051,000
5 Watch		41,089,000		1,969,000		21,147,000		-		64,205,000
6 OAEM		21,135,000		1,649,000		4,357,000		-		27,141,000
7 Substandard		34,931,000		6,601,000		11,111,000		-		52,643,000
8 Doubtful		636,000		-		92,000		-		728,000
Total	$	253,193,000	$	33,072,000	$	87,833,000	$	16,089,000	$	390,187,000

The following table summarizes the risk ratings for the Company's commercial real estate, commercial construction, commercial other, and municipal loans as of December 31, 2011:

	Commercial Real Estate		Commercial Construction		Commercial Other		Municipal Loans		All Risk- Rated Loans
1 Strong	$	23,000	$	-	$	465,000	$	2,158,000	$	2,646,000
2 Above Average		21,334,000		-		4,229,000		7,509,000		33,072,000
3 Satisfactory		33,119,000		1,365,000		10,981,000		3,861,000		49,326,000
4 Average		106,171,000		17,125,000		31,600,000		2,693,000		157,589,000
5 Watch		44,215,000		3,287,000		17,893,000		-		65,395,000
6 OAEM		18,309,000		2,320,000		5,303,000		-		25,932,000
7 Substandard		31,575,000		7,323,000		16,362,000		-		55,260,000
8 Doubtful		678,000		1,154,000		149,000		-		1,981,000
Total	$	255,424,000	$	32,574,000	$	86,982,000	$	16,221,000	$	391,201,000

The following table summarizes the risk ratings for the Company's commercial real estate, commercial construction, commercial other, and municipal loans as of June 30, 2011:

	Commercial Real Estate		Commercial Construction		Commercial Other		Municipal Loans		All Risk- Rated Loans
1 Strong	$	29,000	$	-	$	467,000	$	2,341,000	$	2,837,000
2 Above Average		21,021,000		10,000		3,657,000		10,772,000		35,460,000
3 Satisfactory		40,346,000		1,616,000		15,714,000		3,985,000		61,661,000
4 Average		114,124,000		12,894,000		41,208,000		2,876,000		171,102,000
5 Watch		38,095,000		6,293,000		15,042,000		-		59,430,000
6 OAEM		19,572,000		4,015,000		6,338,000		-		29,925,000
7 Substandard		30,150,000		4,558,000		20,067,000		-		54,775,000
8 Doubtful		-		-		6,000		-		6,000
Total	$	263,337,000	$	29,386,000	$	102,499,000	$	19,974,000	$	415,196,000

Allowance for Loan Losses Transactions

The following table presents allowance for loan losses transactions by class for the six-months and quarters ended June 30, 2012, and allowance for loan loss balances by class and related loan balances by class as of June 30, 2012:

	Commercial						Municipal		Residential					Home Equity		Consumer		Unallocated			Total
	Real Estate		Construction		Other				Term		Construction			Line of Credit
For the six months ended June 30, 2012
Beginning balance	$	5,659,000	$	658,000	$	2,063,000	$	19,000	$	1,159,000	$	255,000		$	595,000	$	584,000	$	2,008,000		$	13,000,000
Charge offs		915,000		-		2,162,000		-		375,000		118,000			49,000		276,000		-			3,895,000
Recoveries		1,000		246,000		11,000		-		2,000		-			-		119,000		-			379,000
Provision		819,000		469,000		2,564,000		-		801,000		(79,000	)		263,000		176,000		(113,000	)		4,900,000
Ending balance	$	5,564,000	$	1,373,000	$	2,476,000	$	19,000	$	1,587,000	$	58,000		$	809,000	$	603,000	$	1,895,000		$	14,384,000
For the three months ended June 30, 2012
Beginning balance	$	5,862,000	$	704,000	$	2,125,000	$	19,000	$	1,236,000	$	59,000		$	682,000	$	568,000	$	1,699,000		$	12,954,000
Charge offs		915,000		-		160,000		-		136,000		118,000			-		96,000		-			1,425,000
Recoveries		1,000		-		9,000		-		1,000		-			-		44,000		-			55,000
Provision		616,000		669,000		502,000		-		486,000		117,000			127,000		87,000		196,000			2,800,000
Ending balance	$	5,564,000	$	1,373,000	$	2,476,000	$	19,000	$	1,587,000	$	58,000		$	809,000	$	603,000	$	1,895,000		$	14,384,000
Allowance for loan losses as of June 30, 2012
Ending balance specifically evaluated for impairment	$	1,133,000	$	787,000	$	932,000	$	-	$	966,000	$	48,000		$	300,000	$	11,000	$	-		$	4,177,000
Ending balance collectively evaluated for impairment	$	4,431,000	$	586,000	$	1,544,000	$	19,000	$	621,000	$	10,000		$	509,000	$	592,000	$	1,895,000		$	10,207,000
Related loan balances as of June 30, 2012
Ending balance	$	253,193,000	$	33,072,000	$	87,833,000	$	16,089,000	$	368,876,000	$	6,449,000		$	100,689,000	$	15,613,000	$	-		$	881,814,000
Ending balance specifically evaluated for impairment	$	13,795,000	$	3,619,000	$	4,100,000	$	-	$	19,052,000	$	1,336,000		$	1,456,000	$	16,000	$	-		$	43,374,000
Ending balance collectively evaluated for impairment	$	239,398,000	$	29,453,000	$	83,733,000	$	16,089,000	$	349,824,000	$	5,113,000		$	99,233,000	$	15,597,000	$	-		$	838,440,000

The following table presents allowance for loan loss balances by class and related loan balances by class as of December 31, 2011:

	Commercial						Municipal		Residential				Home Equity		Consumer		Unallocated		Total
	Real Estate		Construction		Other				Term		Construction		Line of Credit
Allowance for loan losses as of December 31, 2011
Ending balance specifically evaluated for impairment	$	808,000	$	33,000	$	402,000	$	-	$	478,000	$	235,000	$	91,000	$	11,000	$	-	$	2,058,000
Ending balance collectively evaluated for impairment	$	4,851,000	$	625,000	$	1,661,000	$	19,000	$	681,000	$	20,000	$	504,000	$	573,000	$	2,008,000	$	10,942,000
Related loan balances as of December 31, 2011
Ending balance	$	255,424,000	$	32,574,000	$	86,982,000	$	16,221,000	$	341,286,000	$	10,469,000	$	105,244,000	$	16,788,000	$	-	$	864,988,000
Ending balance specifically evaluated for impairment	$	10,141,000	$	5,702,000	$	7,042,000	$	-	$	16,821,000	$	1,198,000	$	1,163,000	$	53,000	$	-	$	42,120,000
Ending balance collectively evaluated for impairment	$	245,283,000	$	26,872,000	$	79,940,000	$	16,221,000	$	324,465,000	$	9,271,000	$	104,081,000	$	16,735,000	$	-	$	822,868,000

The following table presents allowance for loan losses transactions by class for the six-months and quarters ended June 30, 2011, and allowance for loan loss balances by class and related loan balances by class as of June 30, 2011:

	Commercial							Municipal		Residential					Home Equity		Consumer			Unallocated			Total
	Real Estate		Construction			Other				Term		Construction			Line of Credit
For the six months ended June 30, 2011
Beginning balance	$	5,260,000	$	1,012,000		$	2,377,000	$	19,000	$	1,408,000	$	44,000		$	670,000	$	646,000		$	1,880,000		$	13,316,000
Charge offs		835,000		-			319,000		-		697,000		505,000			45,000		169,000			-			2,570,000
Recoveries		5,000		-			20,000		-		4,000		-			1,000		158,000			-			188,000
Provision		2,497,000		(310,000	)		1,245,000		-		641,000		496,000			26,000		29,000			(524,000	)		4,100,000
Ending balance	$	6,927,000	$	702,000		$	3,323,000	$	19,000	$	1,356,000	$	35,000		$	652,000	$	664,000		$	1,356,000		$	15,034,000
For the three months ended June 30, 2011
Beginning balance	$	6,310,000	$	639,000		$	2,535,000	$	19,000	$	1,405,000	$	146,000		$	678,000	$	713,000		$	1,555,000		$	14,000,000
Charge offs		546,000		-			158,000		-		240,000		-			44,000		69,000			-			1,057,000
Recoveries		-		-			3,000		-		1,000		-			1,000		86,000			-			91,000
Provision		1,163,000		63,000			943,000		-		190,000		(111,000	)		17,000		(66,000	)		(199,000	)		2,000,000
Ending balance	$	6,927,000	$	702,000		$	3,323,000	$	19,000	$	1,356,000	$	35,000		$	652,000	$	664,000		$	1,356,000		$	15,034,000
Allowance for loan losses as of June 30, 2011
Ending balance specifically evaluated for impairment	$	613,000	$	-		$	857,000	$	-	$	265,000	$	-		$	165,000	$	65,000		$	-		$	1,965,000
Ending balance collectively evaluated for impairment	$	6,314,000	$	702,000		$	2,466,000	$	19,000	$	1,091,000	$	35,000		$	487,000	$	599,000		$	1,356,000		$	13,069,000
Related loan balances as of June 30, 2011
Ending balance	$	263,337,000	$	29,386,000		$	102,499,000	$	19,974,000	$	335,807,000	$	11,063,000		$	107,224,000	$	17,639,000		$	-		$	886,929,000
Ending balance specifically evaluated for impairment	$	6,746,000	$	772,000		$	2,095,000	$	-	$	16,191,000	$	334,000		$	740,000	$	103,000		$	-		$	26,981,000
Ending balance collectively evaluated for impairment	$	256,591,000	$	28,614,000		$	100,404,000	$	19,974,000	$	319,616,000	$	10,729,000		$	106,484,000	$	17,536,000		$	-		$	859,948,000

Troubled debt restructurings by class and specific reserve

The following table shows TDRs by class and the specific reserve as of June 30, 2012:

	Number of Loans		Balance		Specific Reserves
Commercial
Real estate		17	$	9,216,000	$	496,000
Construction		2		3,099,000		696,000
Other		15		1,984,000		590,000
Municipal		-		-		-
Residential
Term		48		10,681,000		327,000
Construction		-		-		-
Home equity line of credit		-		-		-
Consumer		-		-		-
		82	$	24,980,000	$	2,109,000

The following table shows these TDRs by class and the associated specific reserves included in the allowance for loan losses as of June 30, 2012:

	Number of Loans		Balance		Specific Reserves
Commercial
Real estate		1	$	269,000	$	111,000
Construction		-		-		-
Other		3		180,000		-
Municipal		-		-		-
Residential
Term		9		2,038,000		92,000
Construction		-		-		-
Home equity line of credit		-		-		-
Consumer		-		-		-
		13	$	2,487,000	$	203,000

Loans placed on troubled debt restructurings by class and specific reserve

The following table shows loans placed on TDR status in the six months ended June 30, 2012, by class of loan and the associated specific reserve included in the allowance for loan losses as of June 30, 2012:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Specific Reserves
Commercial
Real estate		12	$	3,845,000	$	4,032,000	$	152,000
Construction		1		1,951,000		1,951,000		696,000
Other		9		712,000		713,000		544,000
Municipal		-		-		-		-
Residential
Term		7		1,411,000		1,411,000		76,000
Construction		-		-		-		-
Home equity line of credit		-		-		-		-
Consumer		-		-		-		-
		29	$	7,919,000	$	8,107,000	$	1,468,000

The following table shows loans placed on TDR status in the quarter ended June 30, 2012, by class of loan and the associated specific reserve included in the allowance for loan losses as of June 30, 2012:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Specific Reserves
Commercial
Real estate		5	$	1,449,000	$	1,598,000	$	152,000
Construction		1		1,951,000		1,951,000		696,000
Other		6		700,000		701,000		545,000
Municipal		-		-		-		-
Residential
Term		3		855,000		855,000		61,000
Construction		-		-		-		-
Home equity line of credit		-		-		-		-
Consumer		-		-		-		-
		15	$	4,955,000	$	5,105,000	$	1,454,000