The allowance for loan losses was $5.9 million at June 30, 2011 representing 3.5% of total loans, compared to $6.9 million at December 31, 2010 or 3.74% of total loans and $9.8 million at June 30, 2010 or 4.8% of total loans. The allowance for loan losses to non-performing loans ratio was 52.9% at June 30, 2011 compared to 48.7% at December 31, 2010 and 41.4% at June 30, 2010. At June 30, 2011 we believe that our allowance appropriately considers incurred losses in our loan portfolio.

Analysis related to the allowance for credit losses (in thousands) as of June 30, 2011 is as follows:


				Comercial
				Real Estate						Residential -		Residential -
		Commercial		Other		Multi Family		Consumer		Prime		Subprime		Construction		Total

ALLOWANCE FOR CREDIT
LOSSES:

Beginning Balance		71		1,790		474		503		3,495		458		59		6,850
	Charge-Offs	(60	)	(99	)	(286	)	(159	)	(740	)	(255	)	(13	)	(1,612	)
	Recoveries	7		228		-		113		27		41		-		416
	Provision	98		(477	)	118		(127	)	123		543		(15	)	263
Ending Balance		116		1,442		306		330		2,905		787		31		5,917
Ending Balance: individually
evaluated for impairment		20		202		-		-		292		-		-		514
Ending Balance: collectively
evaluated for impairment		96		1,240		306		330		2,613		787		31		5,403

FINANCING RECEIVABLES:
Ending Balance		7,273		59,005		4,400		15,869		68,957		16,324		2,562		174,390
Ending Balance: individually
evaluated for impairment		1,830		14,455		454		364		3,322		5,005		322		25,752
Ending Balance: collectively
evaluated for impairment		5,443		44,550		3,946		15,505		65,635		11,319		2,240		148,638