Allowance For Loan Losses, Allowance For Losses On Lending-Related Commitments And Impaired Loans

9 Months Ended

Sep. 30, 2011

Allowance For Loan Losses, Allowance For Losses On Lending-Related Commitments And Impaired Loans

Allowance For Loan Losses, Allowance For Losses On Lending-Related Commitments And Impaired Loans

(7) Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Impaired Loans

The tables below show the aging of the Company's loan portfolio at September 30, 2011, December 31, 2010 and September 30, 2010:

As of September 30 2011 (Dollars in thousands)	Nonaccrual		90+ days and still accruing		60-89 days past due		30-59 days  past due		Current		Total Loans
Loan Balances:
Commercial
Commercial and industrial	$	21,055	$	—	$	13,691	$	9,748	$	1,370,221	$	1,414,715
Franchise		1,792		—		—		—		125,062		126,854
Mortgage warehouse lines of credit		—		—		—		—		132,425		132,425
Community Advantage - homeowners association		—		—		—		—		74,281		74,281
Aircraft		—		—		—		53		18,027		18,080
Asset-based lending		1,989		—		210		—		417,538		419,737
Municipal		—		—		—		—		74,723		74,723
Leases		—		—		—		—		66,671		66,671
Other		—		—		—		—		2,044		2,044
Purchased non-covered commercial (1)		—		616		—		—		6,952		7,568
Total commercial		24,836		616		13,901		9,801		2,287,944		2,337,098
Commercial real-estate:
Residential construction		1,358		1,105		1,532		4,896		63,050		71,941
Commercial construction		2,860		—		—		823		156,738		160,421
Land		31,072		—		2,661		8,935		156,462		199,130
Office		15,432		—		2,079		63		516,356		533,930
Industrial		2,160		—		294		2,427		533,367		538,248
Retail		3,664		—		4,318		19,085		492,168		519,235
Multi-family		3,423		—		4,230		5,666		311,458		324,777
Mixed use and other		9,700		—		8,955		22,759		1,021,868		1,063,282
Purchased non-covered commercial real-estate (1)		—		344		—		285		53,728		54,357
Total commercial real-estate		69,669		1,449		24,069		64,939		3,305,195		3,465,321
Home equity		15,426		—		2,002		5,072		856,680		879,180
Residential real estate		7,546		—		1,852		908		315,901		326,207
Premium finance receivables
Commercial insurance loans		6,942		4,599		3,206		7,726		1,395,099		1,417,572
Life insurance loans		349		2,413		5,877		7,076		1,019,952		1,035,667
Purchased life insurance loans (1)		—		675		—		—		635,101		635,776
Indirect consumer		146		292		81		370		61,563		62,452
Consumer and other		653		—		26		386		111,736		112,801
Purchased non-covered consumer and other (1)		—		—		—		63		574		637
Total loans, net of unearned income, excluding covered loans	$	125,567	$	10,044	$	51,014	$	96,341	$	9,989,745	$	10,272,711
Covered loans		—		179,277		13,721		14,750		472,327		680,075
Total loans, net of unearned income	$	125,567	$	189,321	$	64,735	$	111,091	$	10,462,072	$	10,952,786

(1) Purchased loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments.

As of December 31, 2010 (Dollars in thousands)	Nonaccrual		90+ days and still accruing		60-89 days past due		30-59 days past due		Current		Total Loans
Loan Balances:
Commercial
Commercial and industrial	$	15,922	$	478	$	4,416	$	9,928	$	1,280,009	$	1,310,753
Franchise		—		—		—		2,250		117,238		119,488
Mortgage warehouse lines of credit		—		—		—		—		131,306		131,306
Community Advantage - homeowners association		—		—		—		—		75,542		75,542
Aircraft		—		—		178		1,000		23,440		24,618
Asset-based lending		417		—		161		2,846		285,555		288,979
Municipal		—		—		—		—		56,343		56,343
Leases		43		—		—		—		41,498		41,541
Other		—		—		—		—		756		756
Purchased non-covered commercial (1)		—		—		—		—		—		—
Total commercial		16,382		478		4,755		16,024		2,011,687		2,049,326
Commercial real-estate
Residential construction		10,010		—		96		1,801		84,040		95,947
Commercial construction		1,820		—		—		1,481		128,371		131,672
Land		37,602		—		6,815		11,915		203,857		260,189
Office		12,718		—		9,121		3,202		510,290		535,331
Industrial		3,480		—		686		2,276		493,859		500,301
Retail		3,265		—		4,088		3,839		499,335		510,527
Multi-family		4,794		—		1,573		3,062		281,525		290,954
Mixed use and other		20,274		—		8,481		15,059		969,272		1,013,086
Purchased non-covered commercial real-estate (1)		—		—		—		—		—		—
Total commercial real-estate		93,963		—		30,860		42,635		3,170,549		3,338,007
Home equity		7,425		—		2,181		7,098		897,708		914,412
Residential real estate		6,085		—		1,836		8,224		337,191		353,336
Premium finance receivables
Commercial insurance loans		8,587		8,096		6,076		16,584		1,226,157		1,265,500
Life insurance loans		180		—		—		—		826,119		826,299
Purchased life insurance loans (1)		—		174		—		—		695,413		695,587
Indirect consumer		191		318		301		918		49,419		51,147
Consumer and other		252		1		109		379		105,531		106,272
Purchased non-covered consumer and other (1)		—		—		—		—		—		—
Total loans, net of unearned income, excluding covered loans	$	133,065	$	9,067	$	46,118	$	91,862	$	9,319,774	$	9,599,886
Covered loans		—		117,161		7,352		22,744		187,096		334,353
Total loans, net of unearned income	$	133,065	$	126,228	$	53,470	$	114,606	$	9,506,870	$	9,934,239

(1) Purchased loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments.

As of September 30, 2010 (Dollars in thousands)	Nonaccrual		90+ days and still accruing		60-89 days past due		30-59 days past due		Current		Total Loans
Loan Balances:
Commercial
Commercial and industrial	$	18,950	$	—	$	4,910	$	10,544	$	1,229,448	$	1,263,852
Franchise		—		—		—		—		115,380		115,380
Mortgage warehouse lines of credit		—		—		—		—		158,597		158,597
Community Advantage - homeowners association		—		—		—		—		66,484		66,484
Aircraft		—		—		179		372		35,972		36,523
Asset-based lending		413		—		708		4,996		235,152		241,269
Municipal		—		—		—		—		38,126		38,126
Leases		81		—		—		878		31,600		32,559
Other		—		—		—		—		1		1
Purchased non-covered commercial (1)		—		—		—		—		—		—
Total commercial		19,444		—		5,797		16,790		1,910,760		1,952,791
Commercial real-estate
Residential construction		4,921		—		3,029		3,942		91,019		102,911
Commercial construction		11,230		—		1,665		947		165,825		179,667
Land		27,134		—		13,033		3,971		219,225		263,363
Office		5,745		—		4,186		1,467		526,470		537,868
Industrial		3,565		—		1,014		6,658		461,319		472,556
Retail		2,084		—		4,254		5,079		481,216		492,633
Multi-family		9,339		—		8,023		1,966		259,799		279,127
Mixed use and other		19,322		—		7,373		6,916		969,762		1,003,373
Purchased non-covered commercial real-estate (1)		—		—		—		—		—		—
Total commercial real-estate		83,340		—		42,577		30,946		3,174,635		3,331,498
Home equity		6,144		—		2,215		6,596		904,869		919,824
Residential real estate		6,644		—		718		1,765		332,882		342,009
Premium finance receivables
Commercial insurance loans		9,082		6,853		6,723		13,409		1,287,867		1,323,934
Life insurance loans		222		1,222		6,244		13,567		648,135		669,390
Purchased life insurance loans (1)		—		—		—		—		765,604		765,604
Indirect consumer		446		355		210		1,420		54,144		56,575
Consumer and other		569		2		356		565		98,038		99,530
Purchased non-covered consumer and other (1)		—		—		—		—		—		—
Total loans, net of unearned income, excluding covered loans	$	125,891	$	8,432	$	64,840	$	85,058	$	9,176,934	$	9,461,155
Covered loans		—		137,624		11,000		3,262		201,954		353,840
Total loans, net of unearned income	$	125,891	$	146,056	$	75,840	$	88,320	$	9,378,888	$	9,814,995

(1) Purchased loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments.

Our ability to manage credit risk depends in large part on our ability to properly identify and manage problem loans. To do so, we operate a credit risk rating system under which our credit management personnel assign a credit risk rating (1 to 10 rating) to each loan at the time of origination and review loans on a regular basis.

Each loan officer is responsible for monitoring his or her loan portfolio, recommending a credit risk rating for each loan in his or her portfolio and ensuring the credit risk ratings are appropriate. These credit risk ratings are then ratified by the bank's chief credit officer and/or concurrence credit officer. Credit risk ratings are determined by evaluating a number of factors including, a borrower's financial strength, cash flow coverage, collateral protection and guarantees.

The Company's Problem Loan Reporting system automatically includes all loans with credit risk ratings of 6 through 9. This system is designed to provide an on-going detailed tracking mechanism for each problem loan. Once management determines that a loan has deteriorated to a point where it has a credit risk rating of 6 or worse, the Company's Managed Asset Division performs an overall credit and collateral review. As part of this review, all underlying collateral is identified and the valuation methodology is analyzed and tracked. As a result of this initial review by the Company's Managed Asset Division, the credit risk rating is reviewed and a portion of the outstanding loan balance may be deemed uncollectible or an impairment reserve may be established. The Company's impairment analysis utilizes an independent re-appraisal of the collateral (unless such a third-party evaluation is not possible due to the unique nature of the collateral, such as a closely-held business or thinly traded securities). In the case of commercial real estate collateral, an independent third party appraisal is ordered by the Company's Real Estate Services Group to determine if there has been any change in the underlying collateral value. These independent appraisals are reviewed by the Real Estate Services Group and sometimes by independent third party valuation experts and may be adjusted depending upon market conditions.

Through the credit risk rating process, loans are reviewed to determine if they are performing in accordance with the original contractual terms. If the borrower has failed to comply with the original contractual terms, further action may be required by the Company, including a downgrade in the credit risk rating, movement to non-accrual status, a charge-off or the establishment of a specific impairment reserve. If we determine that a loan amount or portion thereof, is uncollectible the loan's credit risk rating is immediately downgraded to an 8 or 9 and the uncollectible amount is charged-off. Any loan that has a partial charge-off continues to be assigned a credit risk rating of an 8 or 9 for the duration of time that a balance remains outstanding. The Company undertakes a thorough and ongoing analysis to determine if additional impairment and/or charge-offs are appropriate and to begin a workout plan for the credit to minimize actual losses.

If, based on current information and events, it is probable that the Company will be unable to collect all amounts due to it according to the contractual terms of the loan agreement, a specific impairment reserve is established. In determining the appropriate charge-off for collateral-dependent loans, the Company considers the results of appraisals for the associated collateral.

Non-performing loans include all non-accrual loans (8 and 9 risk ratings) as well as loans 90 days past due and still accruing interest, excluding loans acquired with evidence of credit quality deterioration since origination. The remainder of the portfolio not classified as non-performing are considered performing under the contractual terms of the loan agreement. The following table presents the recorded investment based on performance of loans by class, excluding covered loans, per the most recent analysis at September 30, 2011, December 31, 2010, and September 30, 2010:

	Performing						Non-performing						Total
	September 30,		December 31,		September 30,		September 30,		December 31,		September 30,		September 30,		December 31,		September 30,
(Dollars in thousands)	2011		2010		2010		2011		2010		2010		2011		2010		2010
Loan Balances:
Commercial
Commercial and industrial	$	1,393,660	$	1,294,353	$	1,244,902	$	21,055	$	16,400	$	18,950	$	1,414,715	$	1,310,753	$	1,263,852
Franchise		125,062		119,488		115,380		1,792		—		—		126,854		119,488		115,380
Mortgage warehouse lines of credit		132,425		131,306		158,597		—		—		—		132,425		131,306		158,597
Community Advantage - homeowners association		74,281		75,542		66,484		—		—		—		74,281		75,542		66,484
Aircraft		18,080		24,618		36,523		—		—		—		18,080		24,618		36,523
Asset-based lending		417,748		288,562		240,856		1,989		417		413		419,737		288,979		241,269
Municipal		74,723		56,343		38,126		—		—		—		74,723		56,343		38,126
Leases		66,671		41,498		32,478		—		43		81		66,671		41,541		32,559
Other		2,044		756		1		—		—		—		2,044		756		1
Purchased non-covered commercial (1)		7,568		—		—		—		—		—		7,568		—		—
Total commercial		2,312,262		2,032,466		1,933,347		24,836		16,860		19,444		2,337,098		2,049,326		1,952,791
Commercial real-estate
Residential construction		69,478		85,937		97,990		2,463		10,010		4,921		71,941		95,947		102,911
Commercial construction		157,561		129,852		168,437		2,860		1,820		11,230		160,421		131,672		179,667
Land		168,058		222,587		236,229		31,072		37,602		27,134		199,130		260,189		263,363
Office		518,498		522,613		532,123		15,432		12,718		5,745		533,930		535,331		537,868
Industrial		536,088		496,821		468,991		2,160		3,480		3,565		538,248		500,301		472,556
Retail		515,571		507,262		490,549		3,664		3,265		2,084		519,235		510,527		492,633
Multi-family		321,354		286,160		269,788		3,423		4,794		9,339		324,777		290,954		279,127
Mixed use and other		1,053,582		992,812		984,051		9,700		20,274		19,322		1,063,282		1,013,086		1,003,373
Purchased non-covered commercial real-estate (1)		54,357		—		—		—		—		—		54,357		—		—
Total commercial real-estate		3,394,547		3,244,044		3,248,158		70,774		93,963		83,340		3,465,321		3,338,007		3,331,498
Home equity		863,754		906,987		913,680		15,426		7,425		6,144		879,180		914,412		919,824
Residential real estate		318,661		347,251		335,365		7,546		6,085		6,644		326,207		353,336		342,009
Premium finance receivables
Commercial insurance loans		1,406,031		1,248,817		1,307,999		11,541		16,683		15,935		1,417,572		1,265,500		1,323,934
Life insurance loans		1,032,905		826,119		667,946		2,762		180		1,444		1,035,667		826,299		669,390
Purchased life insurance loans (1)		635,776		695,587		765,604		—		—		—		635,776		695,587		765,604
Indirect consumer		62,014		50,638		55,774		438		509		801		62,452		51,147		56,575
Consumer and other		112,148		106,019		98,959		653		253		571		112,801		106,272		99,530
Purchased non-covered consumer and other (1)		637		—		—		—		—		—		637		—		—
Total loans, net of unearned income, excluding covered loans	$	10,138,735	$	9,457,928	$	9,326,832	$	133,976	$	141,958	$	134,323	$	10,272,711	$	9,599,886	$	9,461,155

(1) Purchased loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30.

A summary of activity in the allowance for credit losses by loan portfolio (excluding covered loans) for the three months and nine months ended September 30, 2011 and 2010 is as follows:

Three Months Ended September 30, 2011

(Dollars in thousands)	Commercial			Commercial Real-estate			Home Equity			Residential Real-estate			Premium Finance Receivable			Indirect Consumer			Consumer and Other			Total, Excluding Covered Loans
Allowance for credit losses
Allowance for loan losses at beginning of period	$	32,847		$	61,703		$	7,077		$	5,878		$	7,436		$	613		$	1,808		$	117,362
Reclassification to/from allowance for unfunded lending-related commitments		75			(141	)		—			—			—			—			—			(66	)
Charge-offs		(8,851	)		(14,734	)		(1,071	)		(926	)		(1,769	)		(24	)		(282	)		(27,657	)
Recoveries		150			299			32			3			159			75			29			747
Provision for credit losses		9,559			17,245			1,079			258			1,048			(52	)		(874	)		28,263
Allowance for loan losses at period end	$	33,780		$	64,372		$	7,117		$	5,213		$	6,874		$	612		$	681		$	118,649
Allowance for unfunded lending-related commitments at period end	$	45		$	13,357		$	—		$	—		$	—		$	—		$	—		$	13,402
Allowance for credit losses at period end	$	33,825		$	77,729		$	7,117		$	5,213		$	6,874		$	612		$	681		$	132,051
Individually evaluated for impairment		7,143			30,000			2,272			1,509			—			7			429			41,360
Collectively evaluated for impairment		26,682			47,729			4,845			3,704			6,874			605			252			90,691
Loans acquired with deteriorated credit quality		—			—			—			—			—			—			—			—
Loans at period end
Individually evaluated for impairment	$	32,561		$	143,975		$	16,367		$	9,829		$	—		$	81		$	757		$	203,570
Collectively evaluated for impairment		2,304,537			3,321,346			862,813			316,378			2,453,239			62,371			112,681			9,433,365
Loans acquired with deteriorated credit quality		—			—			—			—			635,776			—			—			635,776
Three Months Ended September 30, 2010
(Dollars in thousands)	Commercial			Commercial Real-estate			Home Equity			Residential Real-estate			Premium Finance Receivable			Indirect Consumer			Consumer and Other			Total, Excluding Covered Loans
Allowance for credit losses
Allowance for loan losses at beginning of period	$	30,716		$	55,464		$	8,366		$	3,573		$	6,620		$	818		$	990		$	106,547
Other adjustments		—			—			—			—			—			—			—			—
Reclassification to/from allowance for unfunded lending-related commitments		—			(206	)		—			—			—			—			—			(206	)
Charge-offs		(3,076	)		(15,727	)		(1,234	)		(116	)		(1,584	)		(198	)		(288	)		(22,223	)
Recoveries		286			197			8			3			220			29			43			786
Provision for credit losses		4,094			17,525			1,052			807			1,209			42			799			25,528
Allowance for loan losses at period end	$	32,020		$	57,253		$	8,192		$	4,267		$	6,465		$	691		$	1,544		$	110,432
Allowance for unfunded lending-related commitments at period end	$	—		$	2,375		$	—		$	—		$	—		$	—		$	—		$	2,375
Allowance for credit losses at period end	$	32,020		$	59,628		$	8,192		$	4,267		$	6,465		$	691		$	1,544		$	112,807
Individually evaluated for impairment	$	7,583		$	17,905		$	763		$	263		$	—		$	—		$	440		$	26,954
Collectively evaluated for impairment	$	24,437		$	41,723		$	7,429		$	4,004		$	6,465		$	691		$	1,104		$	85,853
Loans acquired with deteriorated credit quality	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Loans at period end
Individually evaluated for impairment	$	21,959		$	82,644		$	4,659		$	3,542		$	—		$	9		$	519		$	113,332
Collectively evaluated for impairment		1,930,832			3,248,854			915,165			338,467			1,993,324			56,566			99,011			8,582,219
Loans acquired with deteriorated credit quality		—			—			—			—			765,604			—			—			765,604

Nine Months Ended September 30, 2011

(Dollars in thousands)	Commercial			Commercial Real-estate			Home Equity			Residential Real-estate			Premium Finance Receivable			Indirect Consumer			Consumer and Other			Total, Excluding Covered Loans
Allowance for credit losses
Allowance for loan losses at beginning of period	$	31,777		$	62,618		$	6,213		$	5,107		$	6,319		$	526		$	1,343		$	113,903
Reclassification to/from allowance for unfunded lending-related commitments		1,606			127			—			—			—			—			—			1,733
Charge-offs		(25,574	)		(48,767	)		(3,144	)		(2,483	)		(5,413	)		(188	)		(708	)		(86,277	)
Recoveries		717			1,100			59			8			5,814			183			104			7,985
Provision for credit losses		25,254			49,294			3,989			2,581			154			91			(58	)		81,305
Allowance for loan losses at period end	$	33,780		$	64,372		$	7,117		$	5,213		$	6,874		$	612		$	681		$	118,649
Allowance for unfunded lending-related commitments at period end	$	45		$	13,357		$	—		$	—		$	—		$	—		$	—		$	13,402
Allowance for credit losses at period end	$	33,825		$	77,729		$	7,117		$	5,213		$	6,874		$	612		$	681		$	132,051
Nine Months Ended September 30, 2010
(Dollars in thousands)	Commercial			Commercial Real-estate			Home Equity			Residential Real-estate			Premium Finance Receivable			Indirect Consumer			Consumer and Other			Total, Excluding Covered Loans
Allowance for credit losses
Allowance for loan losses at beginning of period	$	28,012		$	50,952		$	9,013		$	3,139		$	3,816		$	1,368		$	1,977		$	98,277
Other adjustments		—			—			—			—			1,943			—			—			1,943
Reclassification to/from allowance for unfunded lending-related commitments		—			478			—			—			—			—			—			478
Charge-offs		(12,532	)		(48,281	)		(4,604	)		(832	)		(21,265	)		(728	)		(576	)		(88,818	)
Recoveries		873			856			22			10			637			160			124			2,682
Provision for credit losses		15,667			53,248			3,761			1,950			21,334			(109	)		19			95,870
Allowance for loan losses at period end	$	32,020		$	57,253		$	8,192		$	4,267		$	6,465		$	691		$	1,544		$	110,432
Allowance for unfunded lending-related commitments at period end	$	—		$	2,375		$	—		$	—		$	—		$	—		$	—		$	2,375
Allowance for credit losses at period end	$	32,020		$	59,628		$	8,192		$	4,267		$	6,465		$	691		$	1,544		$	112,807

A summary of activity in the allowance for covered loan losses for the three months and nine months ended September 30, 2011 and 2010 is as follows:

	Three Months Ended					Nine Months Ended
	September 30,			September 30,		September 30,			September 30,
(Dollars in thousands)	2011			2010		2011			2010
Balance at beginning of period	$	7,443		$	—	$	—		$	—
Provision for covered loan losses before benefit attributable to FDIC loss share agreements		5,139			—		12,582			—
Benefit attributable to FDIC loss share agreements		(4,112	)		—		(10,066	)		—
Net provision for covered loan losses		1,027			—		2,516			—
Increase in FDIC indemnification asset		4,112			—		10,064			—
Loans charged-off		(88	)		—		(88	)		—
Recoveries of loans charged-off		—			—		2			—
Net charge-offs		(88	)		—		(86	)		—
Balance at end of period	$	12,494		$	—	$	12,494		$	—

In conjunction with FDIC-assisted transactions, the Company entered into loss share agreements with the FDIC. Additional expected losses, to the extent such expected losses result in the recognition of an allowance for loan losses, will increase the loss share assets. The allowance for loan losses for loans acquired in FDIC-assisted transactions is determined without giving consideration to the amounts recoverable through loss share agreements (since the loss share agreements are separately accounted for and thus presented "gross" on the balance sheet). On the Consolidated Statements of Income, the provision for credit losses is reported net of changes in the amount recoverable under the loss share agreements. Reductions to expected losses, to the extent such reductions to expected losses are the result of an improvement to the actual or expected cash flows from the covered assets, will reduce the loss share assets. Additions to expected losses will require an increase to the allowance for loan losses, and a corresponding increase to the loss share assets.

Impaired Loans

A summary of impaired loans, including restructured loans is as follows:

	September 30,		December 31,		September 30,
(Dollars in thousands)	2011		2010		2010
Impaired loans (included in non-performing and restructured loans):
Impaired loans with an allowance for loan loss required (2)	$	83,191	$	115,381	$	89,338
Impaired loans with no allowance for loan loss required		120,379		86,893		97,371
Total impaired loans (1):	$	203,570	$	202,274	$	186,709
Allowance for loan losses related to impaired loans	$	28,447	$	30,626	$	27,289
Restructured loans	$	104,392	$	101,190	$	93,666

(1) Impaired loans are considered by the Company to be non-accrual loans, restructured loans or loans with principal and/or interest at risk, even if the loan is current with all payments of principal and interest.

(2) These impaired loans require an allowance for loan losses because the estimated fair value of the loans or related collateral is less than the recorded investment in the loans.

The following tables present impaired loans evaluated for impairment by loan class for the periods ended as follows:

	As of						For the Nine Months Ended
September 30, 2011 (dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
Impaired loans with a related ASC 310 allowance recorded
Commercial
Commercial and industrial	$	9,542	$	10,725	$	6,597	$	9,670	$	398
Franchise		—		—		—		—		—
Mortgage warehouse lines of credit		—		—		—		—		—
Community Advantage - homeowners association		—		—		—		—		—
Aircraft		—		—		—		—		—
Asset-based lending		945		1,451		501		1,485		62
Municipal		—		—		—		—		—
Leases		—		—		—		—		—
Other		—		—		—		—		—
Commercial real-estate
Residential construction		716		716		160		716		33
Commercial construction		2,483		2,613		381		2,606		117
Land		25,990		27,782		7,396		26,591		1,121
Office		12,627		12,822		4,985		12,656		564
Industrial		1,057		1,059		257		1,063		52
Retail		2,157		2,661		566		2,147		110
Multi-family		3,423		3,766		1,150		3,661		134
Mixed use and other		6,790		7,087		2,237		7,687		307
Home equity		12,254		12,718		2,272		12,469		494
Residential real estate		4,630		4,785		1,509		4,622		109
Premium finance receivables
Commercial insurance		—		—		—		—		—
Life insurance		—		—		—		—		—
Purchased life insurance		—		—		—		—		—
Indirect consumer		49		51		7		52		3
Consumer and other		528		529		429		608		26
Impaired loans with no related ASC 310 allowance recorded
Commercial
Commercial and industrial	$	19,238	$	24,131	$	—	$	25,522	$	1,032
Franchise		1,792		1,792		—		1,792		92
Mortgage warehouse lines of credit		—		—		—		—		—
Community Advantage - homeowners association		—		—		—		—		—
Aircraft		—		—		—		—		—
Asset-based lending		1,044		1,044		—		1,089		44
Municipal		—		—		—		—		—
Leases		—		—		—		—		—
Other		—		—		—		—		—
Commercial real-estate
Residential construction		3,298		4,017		—		4,180		141
Commercial construction		11,019		11,019		—		11,330		377
Land		11,442		20,681		—		13,267		899
Office		8,411		9,702		—		9,653		378
Industrial		7,037		7,527		—		7,338		274
Retail		13,197		13,200		—		13,209		485
Multi-family		548		548		—		549		14
Mixed use and other		33,780		35,512		—		34,601		1,289
Home equity		4,113		4,497		—		4,775		135
Residential real estate		5,199		5,870		—		4,756		189
Premium finance receivables
Commercial insurance		—		—		—		—		—
Life insurance		—		—		—		—		—
Purchased life insurance		—		—		—		—		—
Indirect consumer		32		40		—		39		3
Consumer and other		229		231		—		234		10
Total loans, net of unearned income, excluding covered loans	$	203,570	$	228,576	$	28,447	$	218,367	$	8,892

	As of						For the Twelve Months Ended
December 31, 2010 (dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
Impaired loans with a related ASC 310 allowance recorded
Commercial
Commercial and industrial	$	17,678	$	19,789	$	5,939	$	19,574	$	982
Franchise		—		—		—		—		—
Mortgage warehouse lines of credit		—		—		—		—		—
Community Advantage - homeowners association		—		—		—		—		—
Aircraft		—		—		—		—		—
Asset-based lending		407		976		140		876		60
Municipal		—		—		—		—		—
Leases		—		—		—		—		—
Other		—		—		—		—		—
Commercial real-estate
Residential construction		7,978		8,941		710		9,067		621
Commercial construction		719		719		631		722		37
Land		26,671		27,424		5,598		28,443		1,611
Office		13,186		13,723		3,718		13,448		917
Industrial		2,761		2,761		301		893		31
Retail		8,635		9,171		1,271		9,150		465
Multi-family		5,939		6,767		2,062		6,691		327
Mixed use and other		21,755		22,885		7,104		23,310		1,466
Home equity		6,356		6,553		961		6,494		365
Residential real estate		3,283		3,283		461		3,288		170
Premium finance receivables
Commercial insurance		—		—		—		—		—
Life insurance		—		—		—		—		—
Purchased life insurance		—		—		—		—		—
Indirect consumer		—		—		—		—		—
Consumer and other		13		13		4		15		1
Impaired loans with no related ASC 310 allowance recorded
Commercial
Commercial and industrial	$	12,407	$	16,368	$	157	$	13,210	$	971
Franchise		—		—		—		—		—
Mortgage warehouse lines of credit		—		—		—		—		—
Community Advantage - homeowners association		—		—		—		—		—
Aircraft		—		—		—		—		—
Asset-based lending		10		130		—		121		9
Municipal		—		—		—		—		—
Leases		43		336		—		491		36
Other		—		—		—		—		—
Commercial real-estate
Residential construction		6,063		6,138		127		5,927		268
Commercial construction		1,713		1,713		5		1,715		97
Land		31,598		43,319		1,035		34,258		2,361
Office		6,365		6,563		78		6,370		358
Industrial		3,869		3,868		49		4,086		286
Retail		6,155		6,155		75		6,153		346
Multi-family		2,238		4,479		27		2,584		150
Mixed use and other		13,738		15,569		124		14,343		919
Home equity		1,069		1,142		13		1,119		39
Residential real estate		1,485		1,486		34		1,478		93
Premium finance receivables
Commercial insurance		—		—		—		—		—
Life insurance		—		—		—		—		—
Purchased life insurance		—		—		—		—		—
Indirect consumer		59		67		1		68		7
Consumer and other		81		81		1		88		6
Total loans, net of unearned income, excluding covered loans	$	202,274	$	230,419	$	30,626	$	213,982	$	12,999

	As of						For the Nine Months Ended
September 30, 2010 (dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
Impaired loans with a related ASC 310 allowance recorded
Commercial
Commercial and industrial	$	19,295	$	19,467	$	7,483	$	19,410	$	635
Franchise		—		—		—		—		—
Mortgage warehouse lines of credit		—		—		—		—		—
Community Advantage - homeowners association		—		—		—		—		—
Aircraft		—		—		—		—		—
Asset-based lending		180		180		85		180		9
Municipal		—		—		—		—		—
Leases		15		15		15		17		1
Other		—		—		—		—		—
Commercial real-estate
Residential construction		2,334		2,575		760		2,870		115
Commercial construction		1,387		1,689		474		1,658		75
Land		13,866		16,272		4,141		14,098		742
Office		4,643		5,165		1,907		4,887		221
Industrial		3,045		3,045		291		3,046		20
Retail		6,128		6,213		1,588		6,183		227
Multi-family		9,735		10,158		2,170		10,071		411
Mixed use and other		20,114		20,871		4,706		20,581		985
Home equity		4,659		4,754		763		4,715		230
Residential real estate		3,428		3,431		304		3,432		141
Premium finance receivables
Commercial insurance		—		—		—		—		—
Life insurance		—		—		—		—		—
Purchased life insurance		—		—		—		—		—
Indirect consumer		—		—		—		—		—
Consumer and other		509		509		440		510		19
Impaired loans with no related ASC 310 allowance recorded
Commercial
Commercial and industrial	$	6,761	$	10,350	$	121	$	7,367	$	493
Franchise		—		—		—		—		—
Mortgage warehouse lines of credit		—		—		—		—		—
Community Advantage - homeowners association		—		—		—		—		—
Aircraft		—		—		—		—		—
Asset-based lending		233		796		—		836		37
Municipal		—		—		—		—		—
Leases		65		69		—		67		5
Other		—		—		—		—		—
Commercial real-estate
Residential construction		9,285		9,860		196		9,859		373
Commercial construction		9,843		14,072		75		12,629		797
Land		31,706		44,866		959		38,094		1,761
Office		7,436		7,505		140		7,753		363
Industrial		3,669		3,669		105		3,673		183
Retail		9,237		9,236		156		9,237		386
Multi-family		2,992		5,236		52		4,712		127
Mixed use and other		13,070		13,290		246		13,262		613
Home equity		1,485		1,495		59		1,482		41
Residential real estate		1,386		1,387		43		1,377		72
Premium finance receivables
Commercial insurance		—		—		—		—		—
Life insurance		—		—		—		—		—
Purchased life insurance		—		—		—		—		—
Indirect consumer		143		151		7		152		11
Consumer and other		60		65		3		69		5
Total impaired loans, net of unearned income, excluding covered loans	$	186,709	$	216,391	$	27,289	$	202,227	$	9,098

Restructured Loans

At September 30, 2011, the Company had $104.4 million in loans with modified terms. The $104.4 million in modified loans represents 136 credit relationships in which economic concessions were granted to certain borrowers to better align the terms of their loans with their current ability to pay.

The Company's approach to restructuring loans is built on its credit risk rating system which requires credit management personnel to assign a credit risk rating to each loan. In each case, the loan officer is responsible for recommending a credit risk rating for each loan and ensuring the credit risk ratings are appropriate. These credit risk ratings are then reviewed and approved by the bank's chief credit officer and/or concurrence credit officer. Credit risk ratings are determined by evaluating a number of factors including a borrower's financial strength, cash flow coverage, collateral protection and guarantees. The Company's credit risk rating scale is one through ten with higher scores indicating higher risk. In the case of loans rated six or worse following modification, the Company's Managed Assets Division evaluates the loan and the credit risk rating and determines that the loan has been restructured to be reasonably assured of repayment and of performance according to the modified terms and is supported by a current, well-documented credit assessment of the borrower's financial condition and prospects for repayment under the revised terms.

A modification of a loan with an existing credit risk rating of six or worse or a modification of any other credit, which will result in a restructured credit risk rating of six or worse must be reviewed for troubled debt restructuring ("TDR") classification. In that event, our Managed Assets Division conducts an overall credit and collateral review. A modification of a loan is considered to be a TDR if both (1) the borrower is experiencing financial difficulty and (2) for economic or legal reasons, the bank grants a concession to a borrower that it would not otherwise consider. The modification of a loan where the credit risk rating is five or better both before and after such modification are not reviewed for TDR status. Based on the Company's credit risk rating system, it considers that borrowers whose credit risk rating is five or better are not experiencing financial difficulties and therefore, are not considered TDRs.

TDRs are reviewed at the time of modification and on a quarterly basis to determine if a specific reserve is needed. The carrying amount of the loan is compared to the expected payments to be received, discounted at the loan's original rate, or for collateral dependent loans, to the fair value of the collateral. Any shortfall is recorded as a specific reserve.

All credits determined to be a TDR will continue to be classified as a TDR in all subsequent periods, unless the borrower has been in compliance with the loan's modified terms for a period of six months (including over a calendar year-end) and the modified interest rate represented a market rate at the time of a restructuring. Additionally, before removing a loan from TDR classification, a review of the current or previously measured impairment on the loan and any concerns related to future performance by the borrower is conducted. If concerns exist about the future ability of the borrower to meet its obligations under the loans based on a credit review by the Managed Assets Division, the TDR classification is not removed from the loan.

Each restructured loan was reviewed for collateral impairment at September 30, 2011 and approximately $6.3 million of collateral impairment was present and appropriately reserved for through the Company's normal reserving methodology in the Company's allowance for loan losses.

The tables below present a summary of the post-modification balance of loans restructured during the three-months ended September 30, 2011 and 2010, which represent a troubled debt restructuring:

Three months ended September 30, 2011	Total (1)				Extension at Below Market Terms				Reduction of Interest Rate				Modification to Interest- only Payments				Forgiveness of Debt
(Dollars in thousands)	Count		Balance		Count		Balance		Count		Balance		Count		Balance		Count		Balance
Commercial
Commercial and industrial		8	$	3,157		—	$	—		2	$	412		6	$	2,745		—	$	—
Commercial real-estate
Residential construction		—		—		—		—		—		—		—		—		—		—
Commercial construction		1		467		—		—		1		467		1		467		—		—
Land		2		436		2		436		1		280		—		—		—		—
Office		—		—		—		—		—		—		—		—		—		—
Industrial		1		797		1		797		1		797		1		797		—		—
Retail		2		3,016		2		3,016		1		2,235		2		3,016		—		—
Multi-family		1		548		1		548		—		—		—		—		—		—
Mixed use and other		5		2,195		1		155		3		541		2		1,654		—		—
Residential real estate and other		6		2,857		5		1,917		4		2,334		2		928		—		—
Total loans		26	$	13,473		12	$	6,869		13	$	7,066		14	$	9,607		—	$	—

(1) Restructured loans may have more than one modification representing a concession. As such, restructured loans during the period may be represented in more than one of the categories noted above.

Three months ended September 30, 2010	Total (1)				Extension at Below Market Terms				Reduction of Interest Rate				Modification to Interest- only Payments				Forgiveness of Debt
(Dollars in thousands)	Count		Balance		Count		Balance		Count		Balance		Count		Balance		Count		Balance
Commercial
Commercial and industrial		10	$	2,797		10	$	2,797		3	$	1,603		4	$	585		—	$	—
Commercial real-estate
Residential construction		—		—		—		—		—		—		—		—		—		—
Commercial construction		2		1,628		2		1,628		—		—		—		—		—		—
Land		2		861		2		861		—		—		1		514		—		—
Office		3		3,103		2		631		2		2,547		2		3,028		—		—
Industrial		2		3,149		2		3,149		2		3,149		1		449		—		—
Retail		3		3,141		1		871		1		871		2		2,270		—		—
Multi-family		3		2,644		3		2,644		—		—		—		—		3		2,644
Mixed use and other		6		6,751		4		3,990		3		3,880		3		4,495		1		250
Residential real estate and other		—		—		—		—		—		—		—		—		—		—
Total loans		31	$	24,074		26	$	16,571		11	$	12,050		13	$	11,341		4	$	2,894

(1) Restructured loans may have more than one modification representing a concession. As such, restructured loans during the period may be represented in more than one of the categories noted above.

During the three-months ended September 30, 2011, $13.5 million, or 26 loans, were determined to be troubled debt restructurings, compared to $24.1 million, or 31 loans, in the same period of 2010. Of these loans extended at below market terms, the weighted average extension had a term of approximately 14 months during 2011 compared to 15 months in 2010. Further, the weighted average decrease in the stated interest rate for loans with a reduction of interest rate during the period was approximately 201 basis points and 153 basis points during the three months ending September 30, 2011 and 2010, respectively. Interest-only payment terms were approximately 11 months during the same period in 2011 and 2010. Additionally, no principal balances were forgiven during the third quarter of 2011, compared to $1.2 million forgiven during the third quarter of 2010.

The tables below present a summary of the post-modification balance of loans restructured during the nine-months ended September 30, 2011 and 2010, which represent a troubled debt restructuring:

Nine months ended September 30, 2011	Total (1)				Extension at Below Market Terms				Reduction of Interest Rate				Modification to Interest- only Payments				Forgiveness of Debt
(Dollars in thousands)	Count		Balance		Count		Balance		Count		Balance		Count		Balance		Count		Balance
Commercial
Commercial and industrial		19	$	5,119		8	$	859		10	$	1,271		10	$	3,327		2	$	135
Commercial real-estate
Residential construction		—		—		—		—		—		—		—		—		—		—
Commercial construction		3		9,402		2		8,935		3		9,402		1		467		—		—
Land		3		1,947		3		1,947		1		280		—		—		—		—
Office		7		4,075		5		2,740		5		1,997		2		1,536		—		—
Industrial		3		4,021		3		4,021		2		2,181		2		2,181		—		—
Retail		6		4,302		4		3,775		4		3,251		4		3,586		—		—
Multi-family		1		548		1		548		—		—		—		—		—		—
Mixed use and other		19		23,111		12		11,851		14		20,324		4		6,803		—		—
Residential real estate and other		9		3,451		7		2,326		6		2,796		4		1,390		—		—
Total loans		70	$	55,976		45	$	37,002		45	$	41,502		27	$	19,290		2	$	135

Nine months ended September 30, 2010	Total (1)				Extension at Below Market Terms				Reduction of Interest Rate				Modification to Interest- only Payments				Forgiveness of Debt
(Dollars in thousands)	Count		Balance		Count		Balance		Count		Balance		Count		Balance		Count		Balance
Commercial
Commercial and industrial		23	$	8,094		19	$	5,973		5	$	3,452		12	$	4,226		1	$	1,050
Commercial real-estate
Residential construction		8		8,503		6		6,760		3		4,863		—		—		2		1,743
Commercial construction		2		1,628		2		1,628		—		—		—		—		—		—
Land		11		15,894		10		15,799		2		2,716		5		2,911		—		—
Office		5		6,334		3		3,304		3		3,105		4		6,259		—		—
Industrial		3		3,386		3		3,386		2		3,149		2		686		—		—
Retail		11		10,746		4		3,186		7		6,811		8		8,138		—		—
Multi-family		9		8,808		7		4,191		5		5,735		6		6,163		3		2,644
Mixed use and other		16		13,811		6		4,387		12		9,781		9		9,165		1		250
Residential real estate and other		3		2,827		2		2,591		2		1,127		1		891		—		—
Total loans		91	$	80,031		62	$	51,205		41	$	40,739		47	$	38,439		7	$	5,687

(1) Restructured loans may have more than one modification representing a concession. As such, restructured loans during the period may be represented in more than one of the categories noted above.

During the nine-months ended September 30, 2011, $56.0 million, or 70 loans, were determined to be troubled debt restructurings, compared to $80.0 million or 91 loans in the same period of 2010. Of these loans extended at below market terms, the weighted average extension had a term of approximately 10 months during that period in 2011 compared to 13 months in 2010. Further, the weighted average decrease in the stated interest rate for loans with a reduction of interest rate during the period was approximately 201 basis points and 176 basis points during the nine months ending September 30, 2011 and 2010, respectively. Interest-only payment terms were approximately 10 months during the nine-months ended 2011 compared to 11 months during the same period in 2010. Additionally, approximately $67,000 of principal balance was forgiven during the nine-months ended 2011, compared to $5.7 million forgiven during the same period of 2010.

The tables below present a summary of loans restructured during the three-months and twelve-months ended September 30, 2011 and 2010, and subsequently defaulted under the restructured terms during the relevant period:

	Three Months Ended September 30, 2011								Three Months Ended September 30, 2010
	Total				Payments in  Default (1)				Total				Payments in Default  (1)
(Dollars in thousands)	Count		Balance		Count		Balance		Count		Balance		Count		Balance
Commercial
Commercial and industrial		8	$	3,157		—	$	—		10	$	2,797		—	$	—
Other		—		—		—		—		—		—		—		—
Commercial real-estate
Residential construction		—		—		—		—		—		—		—		—
Commercial construction		1		467		—		—		2		1,628		1		981
Land		2		436		1		156		2		861		1		347
Office		—		—		—		—		3		3,103		—		—
Industrial		1		797		—		—		2		3,149		—		—
Retail		2		3,016		—		—		3		3,141		1		1,088
Multi-family		1		548		—		—		3		2,644		1		1,232
Mixed use and other		5		2,195		1		339		6		6,751		—		—
Residential real estate and other		6		2,857		1		141		—		—		—		—
Total loans		26	$	13,473		3	$	636		31	$	24,074		4	$	3,648

(1) Restructured loans considered to be in payment default are over 30 days past-due subsequent to the restructuring.

	Twelve Months Ended September 30, 2011								Twelve Months Ended September 30, 2010
	Total				Payments in  Default (1)				Total				Payments in Default  (1)
(Dollars in thousands)	Count		Balance		Count		Balance		Count		Balance		Count		Balance
Commercial
Commercial and industrial		32	$	11,941		5	$	1,946		33	$	15,117		5	$	4,632
Other		—		—		—		—		1		3,923		—		—
Commercial real-estate
Residential construction		—		—		—		—		11		11,596		3		4,478
Commercial construction		4		9,779		1		377		2		1,628		1		981
Land		4		4,507		3		4,227		12		18,585		2		6,533
Office		9		8,906		3		3,899		9		8,959		2		2,200
Industrial		3		4,020		1		1,840		4		4,888		1		1,502
Retail		6		4,302		1		459		14		14,528		3		4,332
Multi-family		1		548		—		—		18		13,668		12		10,911
Mixed use and other		22		25,941		4		1,852		24		16,509		8		4,851
Residential real estate and other		10		3,894		3		769		4		3,062		3		2,170
Total loans		91	$	73,838		21	$	15,369		132	$	112,463		40	$	42,590

(1) Restructured loans considered to be in payment default are over 30 days past-due subsequent to the restructuring.