Allowance for Loan Losses

The allowance for loan losses is reported as a reduction of outstanding loan balances, and totaled $98.7 million and $98.4 million at June 30, 2011 and December 31, 2010, respectively. The following tables summarize the changes in the allowance for loan losses for the periods indicated:



	At and for the three months ended June 30, 2011			At and for the six months ended June 30, 2011
	(In thousands)
Allowance for loan losses, beginning of period:
Commercial and industrial	$	13,864		$	13,438
Commercial real estate	68,293			65,760
Construction and land	5,887			6,875
Residential mortgage	7,873			7,449
Home equity	1,199			1,231
Consumer and other	1,463			1,478
Unallocated	1,703			2,172
Total allowance for loan losses, beginning of period	100,282			98,403
Provision for loan losses:
Commercial and industrial	(1,080		)	(205		)
Commercial real estate	(753		)	11,158
Construction and land	(2,877		)	(2,595		)
Residential mortgage	1,476			2,095
Home equity	186			153
Consumer and other	603			768
Unallocated	255			(214		)
Total provision/ (credit) for loan losses	(2,190		)	11,160

(continued)



	At and for the three months ended June 30, 2011			At and for the six months ended June 30, 2011
(continued)	(In thousands)
Loans charged-off:
Commercial and industrial	$	(1,246	)	$	(2,052	)
Commercial real estate	(1,673		)	(11,919		)
Construction and land	(602		)	(2,230		)
Residential mortgage	(850		)	(1,045		)
Home equity	(95		)	(95		)
Consumer and other	(462		)	(653		)
Total charge-offs	(4,928		)	(17,994		)
Recoveries on loans previously charged-off:
Commercial and industrial	922			1,279
Commercial real estate	1,047			1,915
Construction and land	3,596			3,954
Residential mortgage	—			—
Home equity	1			2
Consumer and other	12			23
Total recoveries	5,578			7,173
Allowance for loan losses at June 30, 2011 (end of period):
Commercial and industrial	12,460			12,460
Commercial real estate	66,914			66,914
Construction and land	6,004			6,004
Residential mortgage	8,499			8,499
Home equity	1,291			1,291
Consumer and other	1,616			1,616
Unallocated	1,958			1,958
Total allowance for loan losses at June 30, 2011 (end of period)	$	98,742		$	98,742



	At and for the three months ended June 30, 2010			At and for the six months ended June 30, 2010
	(In thousands)
Allowance for loan losses, beginning of period:	$	73,262		$	68,444
Provision for loan losses	14,962			22,577
Charge-offs	(10,212		)	(15,576		)
Recoveries	1,061			3,628
Allowance for loan losses at June 30, 2010 (end of period)	$	79,073		$	79,073

The following tables show the Company's allowance for loan losses and loan portfolio at June 30, 2011 and December 31, 2010 by portfolio segment, disaggregated by method of impairment analysis. The Company had no loans acquired with deteriorated credit quality at June 30, 2011 or December 31, 2010.



	Commercial and industrial		Commercial real estate		Construction and land		Residential mortgage
	(In thousands)
Allowance for loan losses balance at June 30, 2011 attributable to:
Loans collectively evaluated for impairment	$	13,950	$	60,739	$	5,482	$	8,024
Loans individually evaluated for impairment	22		4,867		308		346
Total allowance for loan losses	$	13,972	$	65,606	$	5,790	$	8,370

Recorded investment (loan balance) at June 30, 2011:
Loans collectively evaluated for impairment	$	616,834	$	1,496,265	$	123,762	$	1,756,157
Loans individually evaluated for impairment	2,894		72,323		6,808		11,514
Total Loans	$	619,728	$	1,568,588	$	130,570	$	1,767,671



	Home equity		Consumer and other		Unallocated		Total
(Continued from above)	(In thousands)
Allowance for loan losses balance at June 30, 2011 attributable to:
Loans collectively evaluated for impairment	$	1,292	$	1,623	$	1,958	$	93,068
Loans individually evaluated for impairment	131		—		—		5,674
Total allowance for loan losses	$	1,423	$	1,623	$	1,958	$	98,742

Recorded investment (loan balance) at June 30, 2011:
Loans collectively evaluated for impairment	$	152,189	$	169,355	$	—	$	4,314,562
Loans individually evaluated for impairment	1,339		—		—		94,878
Total Loans	$	153,528	$	169,355	$	—	$	4,409,440



	Commercial and industrial		Commercial real estate		Construction and land (1)		Residential mortgage
	(In thousands)
Allowance for loan losses balance at December 31, 2010 attributable to:
Loans collectively evaluated for impairment	$	13,384	$	62,586	$	5,808	$	7,117
Loans individually evaluated for impairment	54		3,174		1,067		332
Total allowance for loan losses	$	13,438	$	65,760	$	6,875	$	7,449

Recorded investment (loan balance) at December 31, 2010:
Loans collectively evaluated for impairment	$	649,564	$	1,628,556	$	135,379	$	1,663,492
Loans individually evaluated for impairment	8,583		69,530		15,323		10,442
Total Loans	$	658,147	$	1,698,086	$	150,702	$	1,673,934



	Home equity		Consumer and other		Unallocated		Total
(Continued from above)	(In thousands)
Allowance for loan losses balance at December 31, 2010 attributable to:
Loans collectively evaluated for impairment	$	1,231	$	1,478	$	2,172	$	93,776
Loans individually evaluated for impairment	—		—		—		4,627
Total allowance for loan losses	$	1,231	$	1,478	$	2,172	$	98,403

Recorded investment (loan balance) at December 31, 2010:
Loans collectively evaluated for impairment	$	157,631	$	141,048	$	—	$	4,375,670
Loans individually evaluated for impairment	799		—		—		104,677
Total Loans	$	158,430	$	141,048	$	—	$	4,480,347

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(1)	Does not include a non-accrual construction and land loan held for sale of $1.5 million at December 31, 2010. This loan was the one remaining loan in the Company's non-strategic Southern California loans held for sale portfolio.