Total noncovered and covered loans outstanding as of June 30, 2012, December 31, 2011 and June 30, 2011 were as follows:



	June 30, 2012			December 31, 2011			June 30, 2011
Commercial	$	5,404,971		$	5,107,747		$	4,808,305
Residential mortgage	438,147			413,664			400,661
Installment	1,262,877			1,263,665			1,259,072
Home equity	766,840			743,982			738,719
Credit card	142,586			146,356			143,828
Leases	84,507			73,530			57,634
Total noncovered loans (a)	8,099,928			7,748,944			7,408,219
Allowance for noncovered loan losses	(103,849		)	(107,699		)	(109,187		)
Net noncovered loans	7,996,079			7,641,245			7,299,032
Covered loans (b)	1,271,888			1,497,140			1,755,107
Allowance for covered loan losses	(42,606		)	(36,417		)	(33,360		)
Net covered loans	1,229,282			1,460,723			1,721,747
Net loans	$	9,225,361		$	9,101,968		$	9,020,779


(a)	Includes acquired, noncovered loans of $67.9 million, $113.2 million and $192.2 million as of June 30, 2012,

December 31, 2011 and June 30, 2011, respectively.


(b)	Includes loss share receivable of $152.6 million, $205.7 million and $239.4 million as of June 30, 2012, December 31, 2011 and June 30, 2011, respectively.

Originated loans are presented net of deferred loan origination fees and costs which amounted to $6.6 million, $6.0 million and $5.1 million at June 30, 2012, December 31, 2011 and June 30, 2011, respectively. Acquired loans, including covered loans, are recorded at fair value as of the date of purchase with no allowance for loan loss. As discussed in Note 3 (Business Combinations), the Bank acquired loans with a fair value of $275.6 million on February 19, 2010 in its acquisition of the First Bank branches, and $177.8 million on February 19, 2010 and $1.8 billion on May 14, 2010 in conjunction with the FDIC-assisted acquisitions of George Washington and Midwest, respectively. The loans that were acquired in these FDIC-assisted transactions are covered by loss sharing agreements that afford the Bank significant loss protection. Loans covered under loss sharing agreements, including the amounts of expected reimbursements from the FDIC under these agreements, are reported as covered loans in the accompanying consolidated balance sheets. Changes in the loss share receivable associated with covered loans for the three and six months ended June 30, 2012 and 2011 were as follows:



	Three Months Ended						Six Months Ended
	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Balance at beginning of period	$	171,136		$	265,981		$	205,664		$	288,605
Accretion	(8,877		)	(9,868		)	(18,534		)	(21,498		)
Increase due to impairment	6,218			7,675			11,117			22,854
FDIC reimbursement	(10,651		)	(22,771		)	(38,081		)	(48,402		)
Covered loans paid in full	(5,211		)	(1,593		)	(7,551		)	(2,135		)
Balance at end of the period	$	152,615		$	239,424		$	152,615		$	239,424

Acquired Loans

The Corporation evaluates acquired loans for impairment in accordance with the provisions of ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (“ASC 310-30”). Acquired loans are considered impaired if there is evidence of credit deterioration since origination and if it is probable that not all contractually required payments will be collected. Acquired impaired loans are not classified as nonperforming assets as the loans are considered to be performing under ASC 310-30.

All loans acquired in the First Bank acquisition were performing as of the date of acquisition. The difference between the fair value and the outstanding principal balance of the First Bank acquired loans is being accreted to interest income over the remaining term of the loans.

The Corporation has elected to account for all loans acquired in the George Washington and Midwest acquisitions under ASC 310-30 (“Acquired Impaired Loans”) except for $162.6 million of acquired loans with revolving privileges, which are outside the scope of this guidance and which are being accounted for in accordance with ASC 310 (“Acquired Non-Impaired Loans”). The outstanding balance, including contractual principal, interest, fees and penalties, of all covered loans accounted for in accordance with ASC 310-30 was $1.4 billion, $1.6 billion and $1.9 billion as of June 30, 2012, December 31, 2011 and June 30, 2011, respectively.

Over the life of the loans acquired and considered to be impaired under ASC 310-30, the Corporation evaluates the remaining contractual required payments receivable and estimates cash flows expected to be collected, considering the impact of prepayments. The excess of an acquired impaired loan's contractually required payments over the amount of its undiscounted cash flows expected to be collected is referred to as the nonaccretable difference. The nonaccretable difference, which is neither accreted into income nor recorded on our consolidated balance sheet, reflects estimated future credit losses and uncollectible contractual interest expected to be incurred over the life of the acquired impaired loan. The excess of cash flows expected to be collected over the carrying amount of the acquired impaired loans is referred to as the accretable yield. This amount is accreted into interest income over the remaining life of the acquired impaired loans or pools using the level yield method. The accretable yield is affected by changes in interest rate indices for variable rate loans, changes in prepayment speed assumptions and changes in expected principal and interest payments over the estimated lives of the acquired impaired loans.

The contractually required payments receivable represents the total undiscounted amount of all uncollected principal and interest payments. Contractually required payments receivable may increase or decrease for a variety of reasons, for example, when the contractual terms of the loan agreement are modified, when interest rates on variable rate loans change, or when principal and/or interest payments are received.

Cash flows expected to be collected on acquired impaired loans are estimated by incorporating several key assumptions similar to the initial estimate of fair value. These key assumptions include probability of default, loss given default, and the amount of actual prepayments after the acquisition dates. Prepayments affect the estimated life of loans and could change the amount of interest income, and possibly principal, expected to be collected. In reforecasting future estimated cash flows, credit loss expectations are adjusted as necessary. These adjustments are based, in part, on actual loss severities recognized for each loan type, as well as changes in the probability of default. For periods in which estimated cash flows are not reforecasted, the prior reporting period's estimated cash flows are adjusted to reflect the actual cash received and credit events that transpired during the current reporting period.

Changes in the carrying amount and accretable yield for Acquired Impaired Loans were as follows for the three and six months ended June 30, 2012 and 2011:



	Three Months Ended												Six Months Ended
	June 30, 2012						June 30, 2011						June 30, 2012						June 30, 2011
	Accretable Yield			Carrying Amount			Accretable Yield			Carrying Amount			Accretable Yield			Carrying Amount			Accretable Yield			Carrying Amount
Balance at beginning of period	$	161,292		$	1,043,519		$	212,446		$	1,425,758		$	176,736		$	1,128,978		$	227,652		$	1,512,817
Accretion	(25,405		)	25,405			(34,237		)	34,237			(51,847		)	51,847			(70,124		)	70,124
Net Reclassifications from non-accretable to accretable	12,993			—			18,712			—			24,806			—			39,958			—
Payments, received, net	—			(104,610		)	—			(122,074		)	—			(216,511		)	—			(245,020		)
Disposals	(1,304		)	—			(396		)	—			(2,119		)	—			(961		)	—
Balance at end of period	$	147,576		$	964,314		$	196,525		$	1,337,921		$	147,576		$	964,314		$	196,525		$	1,337,921

A reconciliation of the contractual required payments receivable to the carrying amount of Acquired Impaired Loans for the three months ended June 30, 2012 and 2011 is as follows:



	June 30, 2012			June 30, 2011
Contractual required payments receivable	$	1,413,526		$	1,857,424
Nonaccretable difference	(301,636		)	(322,978		)
Expected cash flows	1,111,890			1,534,446
Accretable yield	(147,576		)	(196,525		)
Carrying balance	$	964,314		$	1,337,921

Increases in expected cash flows subsequent to the acquisition are recognized prospectively through adjustment of the yield on the loans or pools over its remaining life, while decreases in expected cash flows are recognized as impairment through a provision for loan loss and an increase in the allowance for covered loan losses. The most recent quarterly evaluation of the remaining contractual required payments receivable and cash flows expected to be collected resulted in an overall improvement in the cash flow expectations as a result of positive changes in risk ratings, improvements in the underlying value of collateral dependent loans and actual cash flows received higher than expected. There were no significant changes from prior periods to key assumptions used in the most recent quarterly evaluation of cash flows expected to be collected.

The overall improvement in the cash flow expectations resulted in the reclassification from nonaccretable difference to accretable yield of $13.0 million during the three months ended June 30, 2012, respectively. These reclassifications resulted in yield adjustments on these loans and pools on a prospective basis to interest income. Improved cash flow expectations for loans or pools that were impaired during prior periods were recorded first as a reversal of previously recorded impairment and then as an increase in prospective yield when all previously recorded impairment has been recaptured. Additionally, the FDIC loss share receivable was prospectively reduced by the guaranteed portion of the additional cash flows expected to be received, with a corresponding reduction to interest income.

The most recent quarterly evaluation of the remaining contractual required payments receivable and cash flows expected to be collected resulted in the decline in the cash flow expectations of certain loans and pools during the quarter ended June 30, 2012. The decline in expected cash flows was recorded as provision expense of $9.6 million in the quarter ended June 30, 2012 with a related increase of $6.2 million in the loss share receivable for the portion of the losses recoverable under the loss share agreements with the FDIC. This decrease in cash flows resulted in a net increase to the allowance for covered loan losses of $3.4 million as of June 30, 2012. Further detail on impairment and provision expense related to acquired impaired loans can be found in the Note 6 (Allowance for Loan Losses).

Credit Quality Disclosures

The quality of the Corporation’s loan portfolios is assessed as a function of net credit losses, levels of nonperforming assets and delinquencies, and credit quality ratings as defined by the Corporation. These credit quality ratings are an important part of the Corporation’s overall credit risk management process and evaluation of the allowance for credit losses. See Note 6 (Allowance for Loan Losses) for further information.

Generally, loans, except for certain commercial, credit card and mortgage loans, and leases on which payments are past due for 90 days are placed on nonaccrual status, unless those loans are in the process of collection and, in Management’s opinion, are fully secured. Credit card loans on which payments are past due for 120 days are placed on nonaccrual status. When a loan is placed on nonaccrual status, interest deemed uncollectible which had been accrued in prior years is charged against the allowance for loan losses and interest deemed uncollectible accrued in the current year is reversed against interest income. Interest on mortgage loans is accrued until Management deems it uncollectible based upon the specific identification method. Payments subsequently received on nonaccrual loans are generally applied to principal. A loan is returned to accrual status when principal and interest are no longer past due and collectability is probable. This generally requires timely principal and interest payments for a minimum of six consecutive payment cycles. Loans are generally written off when deemed uncollectible or when they reach a predetermined number of days past due depending upon loan product, terms and other factors.

The following tables provide a summary of loans by portfolio type, including the delinquency status of those loans that continue to accrue interest and those loans that are nonaccrual.



As of June 30, 2012

Legacy Loans													≥ 90 Days Past Due and Accruing (a)
	Days Past Due						Total Past Due		Current		Total Loans					Nonaccrual Loans
	30-59		60-89		≥ 90		Total Past Due		Current		Total Loans					Nonaccrual Loans
Commercial
C&I	$	2,688	$	291	$	3,272	$	6,251	$	2,965,741	$	2,971,992	$	—	$	11,119
CRE	9,503		1,338		12,810		23,651		2,064,261		2,087,912		460		22,621
Construction	646		—		1,653		2,299		296,910		299,209		—		1,794
Leases	—		—		—		—		84,507		84,507		—		—
Consumer
Installment	8,338		2,889		4,738		15,965		1,244,869		1,260,834		4,384		355
Home Equity Lines	1,208		772		1,014		2,994		745,468		748,462		1		1,088
Credit Cards	783		517		772		2,072		140,514		142,586		289		502
Residential Mortgages	10,561		4,531		7,856		22,948		413,548		436,496		1,411		6,361
Total	$	33,727	$	10,338	$	32,115	$	76,180	$	7,955,818	$	8,031,998	$	6,545	$	43,840



Acquired Loans (Noncovered)
	Days Past Due						Total Past Due		Current		Total Loans		≥ 90 Days Past Due and Accruing			Nonaccrual Loans
	30-59		60-89		≥ 90		Total Past Due		Current		Total Loans		≥ 90 Days Past Due and Accruing			Nonaccrual Loans
Commercial
C&I	$	—	$	—	$	63	$	63	$	8,947	$	9,010	$	—	$	69
CRE	364		—		2,670		3,034		33,814		36,848		—		2,778
Consumer
Installment	—		—		—		—		2,043		2,043		—		—
Home Equity Lines	607		—		—		607		17,771		18,378		—		—
Residential Mortgages	—		—		—		—		1,651		1,651		—		—
Total	$	971	$	—	$	2,733	$	3,704	$	64,226	$	67,930	$	—	$	2,847



Covered Loans (b)													≥ 90 Days Past Due and Accruing(c)
	Days Past Due						Total Past Due		Current		Total Loans			Nonaccrual Loans (c)
	30-59		60-89		≥ 90		Total Past Due		Current		Total Loans			Nonaccrual Loans (c)
Commercial
C&I	$	3,299	$	1,454	$	25,146	$	29,899	$	137,089	$	166,988	n/a	n/a
CRE	17,443		24,079		161,282		202,804		471,487		674,291		n/a	n/a
Construction	—		1,034		49,501		50,535		23,224		73,759		n/a	n/a
Consumer
Installment	—		615		22		637		8,198		8,835		n/a	n/a
Home Equity Lines	1,690		643		1,314		3,647		125,981		129,628		n/a	n/a
Residential Mortgages	11,452		1,571		9,509		22,532		43,240		65,772		n/a	n/a
Total	$	33,884	$	29,396	$	246,774	$	310,054	$	809,219	$	1,119,273	n/a	n/a


(a)	Installment loans 90 days or more past due and accruing include $3.5 million of loans guaranteed by the U.S. government as of June 30, 2012.


(b)	Excludes loss share receivable of $152.6 million as of June 30, 2012.

(c)

Acquired impaired loans were not classified as nonperforming assets at June 30, 2012 as the loans are considered to be performing under ASC 310-30. As a result interest income, through the accretion of the difference between the carrying amount of the loans and the expected cash flows, is being recognized on all acquired impaired loans. These asset quality disclosures are, therefore, not applicable to acquired impaired loans.



As of December 31, 2011

Legacy Loans							Total Past Due		Current		Total Loans		≥ 90 Days Past Due and Accruing (a)		Nonaccrual Loans
	Days Past Due
	30-59		60-89		≥ 90
Commercial
C&I	$	1,521	$	940	$	5,490	$	7,951	$	2,740,751	$	2,748,702	$	465	$	9,266
CRE	6,187		4,819		29,976		40,982		1,951,211		1,992,193		984		36,025
Construction	39		—		7,837		7,876		269,459		277,335		609		7,575
Leases	—		—		—		—		73,530		73,530		—		—
Consumer
Installment	11,531		3,388		5,167		20,086		1,241,059		1,261,145		4,864		624
Home Equity Lines	2,627		778		1,241		4,646		720,045		724,691		796		1,102
Credit Cards	1,090		707		1,019		2,816		143,540		146,356		403		622
Residential Mortgages	11,778		2,059		9,719		23,556		388,268		411,824		3,252		6,468
Total	$	34,773	$	12,691	$	60,449	$	107,913	$	7,527,863	$	7,635,776	$	11,373	$	61,682



Acquired Loans (Noncovered)							Total Past Due		Current		Total Loans		≥ 90 Days Past Due and Accruing		Nonaccrual Loans
	Days Past Due
	30-59		60-89		≥ 90
Commercial
C&I	$	—	$	—	$	66	$	66	$	26,708	$	26,774	$	—	$	69
CRE	—		452		1,675		2,127		60,616		62,743		—		2,880
Consumer
Installment	—		—		1		1		2,519		2,520		1		—
Home Equity Lines	67		—		1		68		19,223		19,291		2		—
Residential Mortgages	—		—		—		—		1,840		1,840		—		—
Total	$	67	$	452	$	1,743	$	2,262	$	110,906	$	113,168	$	3	$	2,949



Covered Loans (b)							Total Past Due		Current		Total Loans		≥ 90 Days Past Due and Accruing (c)	Nonaccrual Loans (c)
	Days Past Due
	30-59		60-89		≥ 90
Commercial
C&I	$	7,451	$	2,137	$	25,801	$	35,389	$	162,150	$	197,539	n/a	n/a
CRE	20,379		12,895		170,795		204,069		573,779		777,848		n/a	n/a
Construction	4,206		1,674		57,978		63,858		26,051		89,909		n/a	n/a
Consumer
Installment	24		25		60		109		10,013		10,122		n/a	n/a
Home Equity Lines	2,656		1,094		1,088		4,838		136,710		141,548		n/a	n/a
Residential Mortgages	14,106		164		14,254		28,524		45,986		74,510		n/a	n/a
Total	$	48,822	$	17,989	$	269,976	$	336,787	$	954,689	$	1,291,476	n/a	n/a


(a)	Installment loans 90 days or more past due and accruing include $3.0 million of loans guaranteed by the U.S. government as of December 31, 2011.


(b)	Excludes loss share receivable of $205.7 million as of December 31, 2011.

(c)

Acquired impaired loans were not classified as nonperforming assets at December 31, 2011 as the loans are considered to be performing under ASC 310-30. As a result interest income, through the accretion of the difference between the carrying amount of the loans and the expected cash flows, is being recognized on all acquired impaired loans. These asset quality disclosures are, therefore, not applicable to acquired impaired loans.



As of June 30, 2011

Legacy Loans													≥ 90 Days Past Due and Accruing
	Days Past Due						Total Past Due		Current		Total Loans				Nonaccrual Loans
	30-59		60-89		≥ 90		Total Past Due		Current		Total Loans				Nonaccrual Loans
Commercial
C&I	$	3,415	$	6,346	$	3,102	$	12,863	$	2,402,784	$	2,415,647	$	202	$	5,168
CRE	8,286		4,848		42,535		55,669		1,917,646		1,973,315		1,900		47,164
Construction	529		2,091		10,150		12,770		240,609		253,379		31		10,495
Leases	—		—		—		—		57,634		57,634		—		—
Consumer
Installment	9,636		3,243		5,055		17,934		1,238,299		1,256,233		3,316		787
Home Equity Lines	2,086		835		571		3,492		713,297		716,789		571		938
Credit Cards	915		496		797		2,208		141,620		143,828		349		563
Residential Mortgages	9,559		1,560		8,129		19,248		379,942		399,190		3,715		6,663
Total	$	34,426	$	19,419	$	70,339	$	124,184	$	7,091,831	$	7,216,015	$	10,084	$	71,778



Acquired Loans (Noncovered)													≥ 90 Days Past Due and Accruing
	Days Past Due						Total Past Due		Current		Total Loans				Nonaccrual Loans
	30-59		60-89		≥ 90		Total Past Due		Current		Total Loans				Nonaccrual Loans
Commercial
C&I	$	177	$	169	$	68	$	414	$	53,807	$	54,221	$	—	$	68
CRE	4,110		309		3,676		8,095		103,648		111,743		2,883		793
Consumer
Installment	3		70		15		88		2,751		2,839		15		—
Home Equity Lines	140		—		19		159		21,771		21,930		19		—
Residential Mortgages	62		—		—		62		1,409		1,471		—		—
Total	$	4,492	$	548	$	3,778	$	8,818	$	183,386	$	192,204	$	2,917	$	861



Covered Loans (b)													≥ 90 Days Past Due and Accruing(c)
	Days Past Due						Total Past Due		Current		Total Loans			Nonaccrual Loans (c)
	30-59		60-89		≥ 90		Total Past Due		Current		Total Loans			Nonaccrual Loans (c)
Commercial
C&I	$	4,969	$	7,569	$	39,501	$	52,039	$	184,482	$	236,521	n/a	n/a
CRE	27,684		35,750		205,958		269,392		660,039		929,431		n/a	n/a
Construction	139		673		73,265		74,077		27,841		101,918		n/a	n/a
Consumer
Installment	41		33		2,074		2,148		9,379		11,527		n/a	n/a
Home Equity Lines	1,174		1,428		403		3,005		148,961		151,966		n/a	n/a
Residential Mortgages	17,105		1,278		9,809		28,192		56,128		84,320		n/a	n/a
Total	$	51,112	$	46,731	$	331,010	$	428,853	$	1,086,830	$	1,515,683	n/a	n/a


(a)	Installment loans 90 days or more past due and accruing include $2.5 million of loans guaranteed by the U.S. government as of June 30, 2011.


(b)	Excludes loss share receivable of $239.4 million as of June 30, 2011.

(c)

Acquired impaired loans were not classified as nonperforming assets at June 30, 2011 as the loans are considered to be performing under ASC 310-30. As a result interest income, through the accretion of the difference between the carrying amount of the loans and the expected cash flows, is being recognized on all acquired impaired loans. These asset quality disclosures are, therefore, not applicable to acquired impaired loans.

Individual commercial loans are assigned credit risk grades based on an internal assessment of conditions that affect a borrower’s ability to meet its contractual obligation under the loan agreement. The assessment process includes reviewing a borrower’s current financial information, historical payment experience, credit documentation, public information, and other information specific to each borrower. Commercial loans are reviewed on an annual, quarterly or rotational basis or as Management becomes aware of information during a borrower’s ability to fulfill its obligation.

The credit-risk grading process for commercial loans is summarized as follows:

“Pass” Loans (Grades 1, 2, 3, 4) are not considered a greater than normal credit risk. Generally, the borrowers have the apparent ability to satisfy obligations to the bank, and the Corporation anticipates insignificant uncollectible amounts based on its individual loan review.

“Special-Mention” Loans (Grade 5) are commercial loans that have identified potential weaknesses that deserve Management’s close attention. If left uncorrected, these potential weaknesses may result in noticeable deterioration of the repayment prospects for the asset or in the institution’s credit position.

“Substandard” Loans (Grade 6) are inadequately protected by the current financial condition and paying capacity of the obligor or by any collateral pledged. Loans so classified have a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt pursuant to the contractual principal and interest terms. Such loans are characterized by the distinct possibility that the Corporation may sustain some loss if the deficiencies are not corrected.

“Doubtful” Loans (Grade 7) have all the weaknesses inherent in those classified as substandard, with the added characteristic that existing facts, conditions, and values make collection or liquidation in full highly improbable. Such loans are currently managed separately to determine the highest recovery alternatives.

“Loss” Loans (Grade 8) are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. These loans are charged off when loss is identified.

The following tables provide a summary of loans by portfolio type and the Corporation’s internal credit quality rating:



As of June 30, 2012

Legacy Loans
	Commercial
	C&I		CRE		Construction		Leases
Grade 1	$	41,042	$	—	$	—	$	13,141
Grade 2	94,362		3,432		—		114
Grade 3	562,886		313,337		19,800		9,372
Grade 4	2,141,353		1,615,003		268,496		61,522
Grade 5	53,427		67,758		3,885		—
Grade 6	78,922		88,382		7,028		358
Grade 7	—		—		—		—
	$	2,971,992	$	2,087,912	$	299,209	$	84,507



Acquired Loans (Noncovered)
	Commercial
	C&I		CRE		Construction		Leases
Grade 1	$	—	$	—	$	—	$	—
Grade 2	—		—		—		—
Grade 3	—		—		—		—
Grade 4	8,809		32,562		—		—
Grade 5	—		—		—		—
Grade 6	201		4,286		—		—
Grade 7	—		—		—		—
	$	9,010	$	36,848	$	—	$	—



Covered Loans
	Commercial
	C&I		CRE		Construction		Leases
Grade 1	$	36	$	—	$	—	$	—
Grade 2	2,090		—		—		—
Grade 3	90		473		—		—
Grade 4	96,675		270,278		491		—
Grade 5	6,768		51,807		595		—
Grade 6	52,396		346,058		69,851		—
Grade 7	8,933		5,675		2,822		—
	$	166,988	$	674,291	$	73,759	$	—



As of December 31, 2011

Legacy Loans
	Commercial
	C&I		CRE		Construction		Leases
Grade 1	$	37,607	$	—	$	—	$	10,636
Grade 2	122,124		4,218		615		—
Grade 3	479,119		249,382		16,752		5,868
Grade 4	1,973,671		1,548,420		241,302		57,026
Grade 5	50,789		58,942		4,583		—
Grade 6	85,392		130,968		14,083		—
Grade 7	—		263		—		—
	$	2,748,702	$	1,992,193	$	277,335	$	73,530



Acquired Loans (Noncovered)
	Commercial
	C&I		CRE		Construction		Leases
Grade 1	$	—	$	—	$	—	$	—
Grade 2	—		—		—		—
Grade 3	—		1,871		—		—
Grade 4	26,036		55,129		—		—
Grade 5	—		—		—		—
Grade 6	738		5,743		—		—
Grade 7	—		—		—		—
	$	26,774	$	62,743	$	—	$	—



Covered Loans
	Commercial
	C&I		CRE		Construction		Leases
Grade 1	$	948	$	—	$	—	$	—
Grade 2	1,376		—		—		—
Grade 3	—		516		—		—
Grade 4	109,360		303,231		487		—
Grade 5	9,661		103,919		1,567		—
Grade 6	69,330		344,445		80,009		—
Grade 7	6,864		25,737		7,846		—
	$	197,539	$	777,848	$	89,909	$	—



As of June 30, 2011

Legacy Loans
	Commercial
	C&I		CRE		Construction		Leases
Grade 1	$	47,596	$	10,844	$	1,361	$	—
Grade 2	98,521		2,786		—		—
Grade 3	439,392		231,142		25,797		4,451
Grade 4	1,743,893		1,510,966		198,203		53,177
Grade 5	41,771		90,629		7,027		—
Grade 6	44,474		126,796		20,991		6
Grade 7	—		152		—		—
	$	2,415,647	$	1,973,315	$	253,379	$	57,634



Acquired Loans (Noncovered)
	Commercial
	C&I		CRE		Construction		Leases
Grade 1	$	—	$	—	$	—	$	—
Grade 2	—		—		—		—
Grade 3	335		1,977		—		—
Grade 4	52,235		105,292		—		—
Grade 5	863		—		—		—
Grade 6	788		4,474		—		—
Grade 7	—		—		—		—
	$	54,221	$	111,743	$	—	$	—



Covered Loans
	Commercial
	C&I		CRE		Construction		Leases
Grade 1	$	923	$	—	$	—	$	—
Grade 2	445		—		—		—
Grade 3	4,033		2,659		—		—
Grade 4	98,395		378,213		4,679		—
Grade 5	45,824		191,595		2,551		—
Grade 6	85,410		341,158		84,576		—
Grade 7	1,491		15,806		10,112		—
	$	236,521	$	929,431	$	101,918	$	—