Loans and Other Repossessed Assets Acquired

9 Months Ended

Sep. 30, 2012

Loans And Other Repossessed Assets Acquired [Text Block]

NOTE 4. Loans and Other Repossessed Assets Acquired

          The following table presents the loan portfolio by major category.

LOANS (in thousands)	September 30, 2012		December 31, 2011
Residential loans
Residential 1-4 family	$	1,008,130	$	975,405
Residential construction		19,660		15,117
Residential land		52,616		41,612
Total residential loans		1,080,406		1,032,134
Commercial loans
Commercial business		125,345		83,814
Commercial real estate		520,135		456,541
Commercial construction		1,801		16,477
Commercial land		74,306		61,238
Total commercial loans		721,587		618,070
Consumer loans
Home equity		380,000		357,270
Manufactured housing		277,744		275,275
Marine		69,314		52,590
Other consumer		45,318		50,118
Total consumer loans		772,376		735,253
Total loans		2,574,369		2,385,457
Less: Allowance for loan losses		46,351		53,524
Net loans	$	2,528,018	$	2,331,933
Loans held for sale	$	53,761	$	48,303

          Total loans at September 30, 2012 included $275.0 million of loans acquired at estimated fair value in the Plantation and Liberty transactions. See Note 2 to the Consolidated Financial Statements for additional information regarding acquired loans. The loans held for sale are comprised of residential mortgage loans to be sold in the secondary market, and generally settle in 45 to 60 days.

          On April 10, 2009, First Federal entered into a P&A Agreement with the FDIC to acquire certain assets and liabilities of Cape Fear Bank (“Cape Fear”). For Cape Fear, the entire loan portfolio and OREO is covered under the loss sharing agreement with the FDIC, while the P&A Agreement for Plantation covers certain commercial loans and commercial OREO. These “covered loans” are included in the table above and totaled $241.8 million at September 30, 2012 ($94.0 million related to Cape Fear and $147.8 million related to Plantation), compared with $141.4 million at December 31, 2011 (solely Cape Fear covered loans). See Note 5 to the Consolidated Financial Statements for additional information regarding the FDIC indemnification asset associated with these acquisitions.

          The following table presents the loan portfolio by age of delinquency.

Age Analysis Past Due Loans
	As of September 30, 2012
(in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days and Greater Past Due		90 Days and Greater Accruing		Total Past Due		Current1		Total Loans
Residential loans
Residential 1-4 family	$	256	$	2,105	$	10,881	$	—	$	13,242	$	994,888	$	1,008,130
Residential construction		—		—		—		—		—		19,660		19,660
Residential land		157		—		1,558		—		1,715		50,901		52,616
Total residential loans		413		2,105		12,439		—		14,957		1,065,449		1,080,406
Commercial loans
Commercial business		364		218		1,407		—		1,989		123,356		125,345
Commercial real estate		1,965		432		15,853		—		18,250		501,885		520,135
Commercial construction		—		—		247		—		247		1,554		1,801
Commercial land		243		75		2,990		—		3,308		70,998		74,306
Total commercial loans		2,572		725		20,497		—		23,794		697,793		721,587
Consumer loans
Home equity		1,676		528		10,145		—		12,349		367,651		380,000
Manufactured housing		1,674		832		2,221		—		4,727		273,017		277,744
Marine		227		—		90		—		317		68,997		69,314
Other consumer		577		165		228		74		1,044		44,274		45,318
Total consumer loans		4,154		1,525		12,684		74		18,437		753,939		772,376
Total loans	$	7,139	$	4,355	$	45,620	$	74	$	57,188	$	2,517,181	$	2,574,369
Total loans excluding covered loans	$	5,698	$	4,355	$	35,598	$	74	$	45,725	$	2,286,838	$	2,332,563

Age Analysis Past Due Loans
	As of December 31, 2011
(in thousands)		30-59 Days Past Due		60-89 Days Past Due		90 Days and Greater Past Due		90 Days and Greater Accruing		Total Past Due		Current1		Total Loans
Residential loans
Residential 1-4 family	$	1,796	$	1,190	$	4,977	$	—	$	7,963	$	967,442	$	975,405
Residential construction		—		—		—		—		—		15,117		15,117
Residential land		511		50		1,448		—		2,009		39,603		41,612
Total residential loans		2,307		1,240		6,425		—		9,972		1,022,162		1,032,134
Commercial loans
Commercial business		676		232		3,665		—		4,573		79,241		83,814
Commercial real estate		2,250		1,264		17,160		—		20,674		435,867		456,541
Commercial construction		—		—		573		—		573		15,904		16,477
Commercial land		743		442		5,232		—		6,417		54,821		61,238
Total commercial loans		3,669		1,938		26,630		—		32,237		585,833		618,070
Consumer loans
Home equity		2,599		1,926		8,192		—		12,717		344,553		357,270
Manufactured housing		2,515		752		3,461		—		6,728		268,547		275,275
Marine		410		187		246		—		843		51,747		52,590
Other consumer		520		311		224		121		1,176		48,942		50,118
Total consumer  loans		6,044		3,176		12,123		121		21,464		713,789		735,253
Total loans	$	12,020	$	6,354		45,178	$	121	$	63,673	$	2,321,784		2,385,457
Total  loans excluding covered loans	$	11,002	$	5,069	$	28,389	$	121	$	44,581	$	2,199,490	$	2,244,071
1 Included in current loans are $2.4 million of performing troubled debt restructurings ("TDRs") of which $734 thousand are covered.

          Nonperforming assets include nonaccrual loans, loans delinquent 90 days or more and still accruing, restructured loans still accruing, and other repossessed assets acquired through foreclosure. With the exception of the credit card portfolio, loans are placed on nonaccrual status when they become 90 days delinquent. In addition, loans that were not delinquent in excess of 90 days but exhibited doubt as to the borrowers’ ability to repay all contractual principal and interest have been classified as impaired under ASC 310-10-35 and placed on nonaccrual status. The following table summarizes nonperforming assets.

Nonperforming Assets (in thousands)	September 30, 2012		December 31, 2011
Nonaccrual loans	$	45,620	$	45,178
Loans 90+ days, still accruing		74		121
Restructured loans, still accruing		3,340		2,411
Total nonperforming loans		49,034		47,710
Other repossessed assets acquired		21,579		20,487
Total nonperforming assets	$	70,613	$	68,197
Total nonperforming loans excluding nonperforming covered loans	$	39,012	$	30,187
Total nonperforming assets excluding nonperforming covered assets	$	45,986	$	43,124

          Loans acquired in the Cape Fear and Plantation acquisitions that were performing at the time of acquisition, but have subsequently become nonaccrual are included in the tables above. Nonperforming loans acquired at acquisition are included in the current loan category in the “Age Analysis Past Due Loans” table above and, as such, are not included in the “Nonperforming Assets” table since these loans were adjusted to fair value at the acquisition date and accounted for under ASC 310-30.

Impaired Loans

          In accordance with ASC 310-10-35, a loan is considered impaired when First Federal determines it is probable that the principal and interest due under the contractual terms of the loan will not be collected. Criticized and classified commercial loans (as defined in the “Criticized Loans, Classified Loans and Other Risk Characteristics” section of this Note) greater than $500,000 are reviewed for potential impairment as part of a monthly problem loan review process. In addition, homogeneous loans which have been modified are reviewed for potential impairment.

          In assessing the impairment of a loan and the related reserve required for that loan, various methodologies are employed. Impairment measurement on loans that are not collateral dependent is determined primarily using the present value of expected future cash flows discounted at the loan’s effective interest rate. With respect to most real estate loans, and specifically if the loan is considered to be collected through a probable foreclosure, an approach that estimates the fair value of the underlying collateral is used. The collateral is appraised to reflect estimated realizable value (usually “as is” or liquidation value), with the market value being adjusted for estimated selling costs. First Federal’s policy is to update collateral appraisals on impaired loans at least annually, and more frequently if deemed necessary based on market conditions or specific circumstances. Significant downward trends in the real estate market can adversely affect First Federal’s collateral position. For larger credits or loans that are classified “substandard” or worse that rely primarily on real estate collateral for repayment, re-appraisal would occur earlier than the stated policy if management believes the market conditions have changed such that the existing appraisal may no longer reflect the current market value of the property. At a minimum, at the time a commercial loan with a principal balance of over $500,000 is downgraded to “substandard” or worse, or if the loan is determined to be impaired, the property securing the loan is re-appraised to update the value. In addition to updated appraisals, market bids or current offers may be utilized to estimate current value.

          First Federal maintains a valuation reserve for impaired loans as part of the allowance for loan losses. Cash collected on impaired nonaccrual loans is applied to outstanding principal. A summary of impaired loans, related valuation reserves, and their effect on interest income follows.

Impaired Loans
(in thousands)	Unpaid Contractual Principal Balance		Recorded Investment With No Specific Allowance		Recorded Investment With Specific Allowance		Total Recorded Investment		Specific Allowance		Year to Date Average Balance		Interest Income Recognized Year to Date
September 30, 2012
Residential loans
Residential 1-4 family	$	6,231	$	5,514	$	279	$	5,793	$	91	$	4,019	$	18
Residential land		475		109		—		109		—		55		—
Total residential loans		6,706		5,623		279		5,902		91		4,074		18
Commercial loans		.
Commercial business		1,414		761		—		761		—		2,207		27
Commercial real estate		12,198		8,329		696		9,025		23		10,649		93
Commercial construction		311		248		—		248		—		255		—
Commercial land		3,879		1,133		1,093		2,226		283		2,977		—
Total commercial loans		17,802		10,471		1,789		12,260		306		16,087		120
Consumer loans
Home equity		7,693		5,892		404		6,296		70		5,036		5
Manufactured housing		154		136		—		136		—		135		—
Marine		—		—		—		—		—		—		—
Total consumer loans		7,847		6,028		404		6,432		70		5,170		5
Total impaired loans	$	32,355	$	22,122	$	2,472	$	24,594	$	467	$	25,332	$	143
December 31, 2011
Residential loans
Residential 1-4 family	$	2,366	$	1,957	$	288	$	2,245	$	93	$	1,637	$	10
Residential land		—		—		—		—		—		—		—
Total residential loans		2,366		1,957		288		2,245		93		1,637		10
Commercial loans
Commercial business		4,134		2,143		1,510		3,653		11		3,400		—
Commercial real estate		14,336		8,819		3,453		12,272		967		12,928		10
Commercial construction		311		261		—		261		—		261		—
Commercial land		6,258		2,024		1,704		3,728		327		4,495		—
Total commercial loans		25,039		13,247		6,667		19,914		1,305		21,084		10
Consumer loans
Home equity		4,356		2,978		797		3,775		1		3,017		—
Manufactured housing		155		133		—		133		—		134		—
Marine		—		—		—		—		—		—		—
Total consumer loans		4,511		3,111		797		3,908		1		3,151		—
Total impaired loans	$	31,916	$	18,315	$	7,752	$	26,067	$	1,399	$	25,872	$	20

          The total recorded investment in covered impaired loans was $4.6 million as of September 30, 2012. These loans did not have a specific allowance as of September 30, 2012. The following table rolls forward the accretable yield associated with the ASC-310-30 loan portfolio associated with the Cape Fear and Plantation acquisitions.

(in thousands)
2009 Cape Fear balance at acquisition			$	10,713
2009 accretion	(4,305	)
2010 accretion	(4,162	)
2011 accretion	(2,684	)
2011 reclassification from nonaccretable balance	14,592
2012 Plantation balance at acquisition	8,692
2012 accretion	(5,062	)
2012 reclassification from nonaccretable balance	6,000
				13,071
Balance, at September 30, 2012			$	23,784

          During 2011 and 2012, First Federal reclassified some of the nonaccretable balance to accretable yield for the Cape Fear loans that were impaired at purchase. The reclassification was primarily the result of increased cash flow estimates due to revising loss projections based on actual performance. This amount is recognized as a prospective yield adjustment and increases interest income over the remaining life of the loan pool.

Troubled Debt Restructuring (“TDR”)

          First Federal accounts for certain loan modifications or restructurings as a TDR. In general, the modification or restructuring of a loan is considered a TDR if, for economic or legal reasons related to a borrower’s financial difficulties, a concession is granted to the borrower that creditors would not otherwise consider. Concessions may relate to the contractual interest rate, maturity date, payment structure of the note or other actions. In accordance with GAAP, loans acquired under ASC 310-30 are not initially considered to be TDRs. The following table provides a summary of TDRs by accrual status. The TDRs on nonaccrual status are included in the nonperforming asset table above.

Troubled Debt Restructurings
	September 30, 2012						December 31, 2011
(in thousands)	Still Accruing		Nonaccrual		Total		Still Accruing		Nonaccrual		Total
Residential 1-4 family	$	328	$	4,458	$	4,786	$	734	$	1,269	$	2,003
Residential land		—		66		66		—		—		—
Residential Loans		328		4,524		4,852		734		1,269		2,003
Commercial loans
Commercial business		689		—		689		700		1,113		1,813
Commercial real estate		1,512		3,475		4,987		977		5,293		6,270
Commercial land		499		1,727		2,226		—		2,192		2,192
Total commercial loans		2,700		5,202		7,902		1,677		8,598		10,275
Consumer loans
Home equity		176		4,607		4,783		—		3,775		3,775
Manufactured housing		136		—		136		—		133		133
Total consumer loans		312		4,607		4,919		—		3,908		3,908
Total loans	$	3,340	$	14,333	$	17,673	$	2,411	$	13,775	$	16,186

          Once a loan is deemed to be a TDR, it is reviewed for potential impairment in accordance with ASC 310-10-35. The following table provides a summary of the loans that were restructured as TDRs during the three and nine months ended September 30, 2012 and 2011 and displays the incremental impact to the allowance for loan losses as a result of the modification.

Troubled Debt Restructurings
	As of and for the Three Months Ended September 30, 2012
	Outstanding Recorded Investment1
(dollars in thousands)	#		Pre-Modification		Post-Modification By Type				Total Post- Modification Investment		Increase to Allowance
			Total		Rate		Structure
Residential 1-4		1	$	790	$	—	$	790	$	790	$	—
Residential land		1		345		345		—		345		—
Commercial real estate		3		1,052		—		1,117		1,117		—
Commercial land		1		621		—		351		351		—
Home equity		3		551		453		98		551		3
Total restructured loans		9	$	3,359	$	798	$	2,356	$	3,154	$	3

	As of and for the Three Months Ended September 30, 2011
	Outstanding Recorded Investment1
(dollars in thousands)	#		Pre-Modification		Post-Modification By Type				Total Post- Modification Investment		Increase to Allowance
			Total		Rate		Structure
Commercial real estate		2	$	1,171	$	—	$	1,171	$	1,171	$	3
Home Equity		4		1,412		1,412		—		1,412		—
Total restructured loans		6	$	2,583	$	1,412	$	1,171	$	2,583	$	3

¹Outstanding recorded investment as defined by ASC 310-35-24, includes the loan balance, accrued interest, loan fees or costs, and unamortized premium or discount.

	As of and for the Nine Months Ended September 30, 2012
	Outstanding Recorded Investment1
(dollars in thousands)	#		Pre-Modification		Post-Modification By Type				Total Post- Modification Investment		Increase to Allowance
			Total		Rate		Structure
Residential 1-4		5	$	2,913	$	1,699	$	1,236	$	2,935	$	—
Residential land		1		345		345	$	—		345		—
Commercial real estate		4		1,610		—		1,675		1,675		—
Commercial land		1		621		—		351		351		—
Home equity		12		2,556		2,066		490		2,556		3
Total restructured loans		23	$	8,045	$	4,110	$	3,752	$	7,862	$	3

	As of and for the Nine Months Ended September 30, 2011
	Outstanding Recorded Investment1
(dollars in thousands)	#		Pre-Modification		Post-Modification By Type				Total Post- Modification Investment		Increase to Allowance
			Total		Rate		Structure
Residential 1-4		1	$	202	$	206	$	—	$	206	$	—
Commercial business		1		299		—		299		299		—
Commercial real estate		11		6,274		—		6,274		6,274		167
Commercial land		4		13,447		—		11,423		11,423		395
Home equity		6		1,864		1,864		—		1,864		—
Manufactured housing		1		156		156		—		156		—
Total restructured loans		24	$	22,242	$	2,226	$	17,996	$	20,222	$	562

          The following table provides a summary of the loans that were modified for rate or structure as a TDR during the twelve months ended September 30, 2012 and 2011 and which subsequently defaulted during the three and nine months ended September 30, 2012 and 2011. There was no incremental impact to the allowance for loan losses as a result of the defaults as the defaulted loans were already reviewed for impairment in accordance with ASC 310-10-35.

Defaulted TDRs with Structure or Rate Modifications
As of and for the Three Months Ended September 30,
	2012								2011
(dollars in thousands)	#		Recorded Investment				Total Recorded Investment		#		Recorded Investment				Total Recorded Investment
			Rate		Structure						Rate		Structure
Residential 1-4 family		0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Commercial real estate		—	$	—	$	—	$	—		5	$	—	$	1,979	$	1,979
Commercial land		—		—		—		—		1		—		1,200		1,200
Home equity		5		1,757		—		1,757		—		—		—		—
Defaulted TDRs		5	$	1,757	$	—	$	1,757		6	$	—	$	3,179	$	3,179

	As of and for the Nine Months Ended September 30,
	2012								2011
(dollars in thousands)	#		Recorded Investment				Total Recorded Investment		#		Recorded Investment				Total Recorded Investment
			Rate		Structure						Rate		Structure
Residential 1-4		1	$	461	$	—	$	461		—	$	—	$	—	$	—
Commercial real estate		1		—		677		677		6		—		2,633		2,633
Commercial land		1		—		1,210		1,210		1		—		1,200		1,200
Home equity		6		1,916		—		1,916		—		—		—		—
Defaulted TDRs		9	$	2,377	$	1,887	$	4,264		7	$	—	$	3,833	$	3,833

Criticized Loans, Classified Loans and Other Risk Characteristics

          Federal regulations provide for the designation of lower quality loans as special mention, substandard, doubtful or loss. Loans designated as special mention are considered “criticized” by regulatory definitions and possess characteristics of weakness that may not necessarily manifest into future loss. Loans designated as substandard, doubtful or loss are considered “classified” by regulatory definitions. Substandard loans are inadequately protected by the current net worth, liquidity and paying capacity of the borrower or any collateral pledged and include loans characterized by the distinct possibility that some loss will occur if the deficiencies are not corrected. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of existing facts, conditions and values. Loans classified as loss are those considered uncollectible and of such little value that their continuance without the establishment of a specific loss reserve is not warranted. When First Federal classifies problem loans as a loss, they are charged-off in the period in which they are deemed uncollectible. First Federal evaluates its commercial loans regularly to determine whether they are appropriately risk rated in accordance with applicable regulations and internal policies.

          The following table presents the risk profiles for the commercial loan portfolio by the primary categories monitored.

Commercial Credit Quality1	As of September 30, 2012
(in thousands)	Commercial Business		Commercial Real Estate		Commercial Construction			Commercial Land		Total Commercial Loans
Pass	$	78,918	$	369,273	$	1,882		$	19,581	$	469,654
Special mention		3,886		38,675		—			16,511		59,072
Substandard		9,689		57,318		247			9,577		76,831
Doubtful		43		419		—			—		462
Total		92,536		465,685		2,129			45,669		606,019
ASC 310-30 loans		32,809		54,450		(328	)		28,637		115,568
Total	$	125,345	$	520,135	$	1,801		$	74,306	$	721,587

¹Credit quality indicators are reviewed and updated as applicable on an ongoing basis in accordance with credit policies.

          For residential and consumer loans, First Federal evaluates credit quality based on payment activity, accrual status, and if a loan was modified from its original contractual terms. In addition, residential and consumer loans that are part of a classified commercial relationship (i.e., the non-commercial loans in a commercial or guarantor’s relationship) are also rated as classified loans unless the underlying facts support otherwise.

               The following tables present the risk indicators for the residential and consumer loan portfolios.

Residential Credit Quality1	As of September 30, 2012
(in thousands)	Residential 1-4 Family		Residential Construction		Residential Land		Total Residential Loans
Performing	$	976,822	$	19,660	$	44,891	$	1,041,373
Performing classified		6,761		—		430		7,191
Nonperforming		11,209		—		1,558		12,767
Total		994,792		19,660		46,879		1,061,331
ASC 310-30 loans		13,338		—		5,737		19,075
Total	$	1,008,130	$	19,660	$	52,616	$	1,080,406

¹Credit quality indicators are reviewed and updated as applicable on an ongoing basis in accordance with credit policies.

Consumer Credit Quality1	As of September 30, 2012
(in thousands)	Home Equity		Manufactured Housing		Marine		Other Consumer		Total Consumer Loans
Performing	$	351,670	$	275,387	$	69,198	$	44,528	$	740,783
Performing classified		7,445		—		26		115		7,586
Nonperforming		10,321		2,357		90		302		13,070
Total		369,436		277,744		69,314		44,945		761,439
ASC 310-30 loans		10,564		—		—		373		10,937
Total	$	380,000	$	277,744	$	69,314	$	45,318	$	772,376

¹Credit quality indicators are reviewed and updated as applicable on an ongoing basis in accordance with credit policies.

          An analysis of changes in the allowance for loan losses follows.

Allowance for Loan Losses
	As of and for the Three Months Ended September 30, 2012
(in thousands)	Residential			Commercial Business			Commercial Real Estate			Commercial Construction			Commercial Land			Consumer			Total
Allowance for loan losses
Balance at beginning of period	$	7,929		$	3,988		$	10,272		$	231		$	4,798		$	21,581		$	48,799
Provision for loan losses		1,000			410			1,909			(182	)		44			1,352			4,533
Loan charge-offs		(730	)		(1,045	)		(2,042	)		(14	)		(1,054	)		(2,730	)		(7,615	)
Recoveries		33			121			48			3			17			412			634
Net charge-offs		(697	)		(924	)		(1,994	)		(11	)		(1,037	)		(2,318	)		(6,981	)
Balance at end of period	$	8,232		$	3,474		$	10,187		$	38		$	3,805		$	20,615		$	46,351

	As of and for the Three Months Ended September 30, 2011
(in thousands)	Residential			Commercial Business			Commercial Real Estate			Commercial Construction			Commercial Land			Consumer			Total
Allowance for loan losses
Balance at beginning of period	$	7,649		$	4,339		$	12,044		$	1,064		$	7,559		$	22,836		$	55,491
Provision for loan losses		726			282			380			236			1,966			5,350			8,940
Loan charge-offs		(688	)		(194	)		(459	)		(645	)		(2,118	)		(6,655	)		(10,759	)
Recoveries		109			58			26			10			66			392			661
Net charge-offs		(579	)		(136	)		(433	)		(635	)		(2,052	)		(6,263	)		(10,098	)
Balance at end of period	$	7,796		$	4,485		$	11,991		$	665		$	7,473		$	21,923		$	54,333

	As of and for the Nine Months Ended September 30, 2012
(in thousands)	Residential			Commercial Business			Commercial Real Estate			Commercial Construction			Commercial Land			Consumer			Total
Allowance for loan losses
Balance at beginning of period	$	8,748		$	4,106		$	11,711		$	397		$	5,981		$	22,581		$	53,524
Provision for loan losses		2,537			1,450			2,646			(350	)		1,023			8,669			15,975
Loan charge-offs		(3,359	)		(2,357	)		(4,808	)		(14	)		(3,299	)		(11,506	)		(25,343	)
Recoveries		306			275			638			5			100			871			2,195
Net charge-offs		(3,053	)		(2,082	)		(4,170	)		(9	)		(3,199	)		(10,635	)		(23,148	)
Balance at end of period	$	8,232		$	3,474		$	10,187		$	38		$	3,805		$	20,615		$	46,351
Loans as of September 30, 2012
Individually evaluated for impairment	$	5,902		$	761		$	9,025		$	248		$	2,226		$	6,432		$	24,594
Collectively evaluated for impairment		1,055,429			91,775			456,660			1,881			43,443			755,007			2,404,195
ASC 310-30 loans		19,075			32,809			54,450			(328	)		28,637			10,937			145,580
Total loans	$	1,080,406		$	125,345		$	520,135		$	1,801		$	74,306		$	772,376		$	2,574,369

	As of and for the Nine Months Ended September 30, 2011
(in thousands)	Residential			Commercial Business			Commercial Real Estate			Commercial Construction			Commercial Land			Consumer			Total
Allowance for loan losses
Balance at beginning of period	$	9,955		$	8,558		$	25,159		$	1,723		$	20,940		$	22,014		$	88,349
Provision for loan losses		16,291			4,717			30,481			2,641			27,405			17,883			99,418
Loan charge-offs		(18,882	)		(8,979	)		(43,829	)		(3,743	)		(41,590	)		(18,918	)		(135,941	)
Recoveries		432			189			180			44			718			944			2,507
Net charge-offs		(18,450	)		(8,790	)		(43,649	)		(3,699	)		(40,872	)		(17,974	)		(133,434	)
Balance at end of period	$	7,796		$	4,485		$	11,991		$	665		$	7,473		$	21,923		$	54,333
Loans as of September 30, 2011
Individually evaluated for impairment	$	1,028		$	3,147		$	13,583		$	261		$	5,261		$	2,393		$	25,673
Collectively evaluated for impairment		965,603			75,973			448,223			14,225			57,052			750,684			2,311,760
ASC 310-30 loans		432			1,751			9,490			565			5,119			544			17,901
Total loans	$	967,063		$	80,871		$	471,296		$	15,051		$	67,432		$	753,621		$	2,355,334

Other Repossessed Assets Acquired

          The following table presents the components of other repossessed assets acquired, comprised of OREO and other consumer-related repossessed items, such as manufactured houses and boats, which is included in other assets on the Consolidated Balance Sheets.

(in thousands)	September 30, 2012		December 31, 2011
Residential real estate	$	5,041	$	7,753
Commercial real estate		4,649		5,382
Land		10,261		5,824
Consumer related assets		1,628		1,528
Total other repossessed assets acquired	$	21,579	$	20,487
Total covered other repossessed assets acquired	$	14,605	$	7,550

          The following table presents the components of other real estate expenses, net.

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2012			2011			2012			2011
Gain on sale of other real estate, net	$	(439	)	$	(324	)	$	(1,566	)	$	(921	)
Fair value writedown		1,336			2,953			2,720			4,462
Expenses, net		393			726			1,566			1,942
Rental income		(29	)		(82	)		(112	)		(186	)
Covered OREO expense reimbursement		(231	)		(158	)		(914	)		(1,515	)
Total other real estate expenses, net	$	1,030		$	3,115		$	1,694		$	3,782