Allowance for Loan Losses

The allowance for loan losses is reported as a reduction of outstanding loan balances, and totaled $98.8 million and $98.4 million at September 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 September 30, 2011			At and for the nine months ended September 30, 2011
	(In thousands)
Allowance for loan losses, beginning of period:
Commercial and industrial	$	12,460		$	13,438
Commercial real estate	66,914			65,760
Construction and land	6,004			6,875
Residential mortgage	8,499			7,449
Home equity	1,291			1,231
Consumer and other	1,616			1,478
Unallocated	1,958			2,172
Total allowance for loan losses, beginning of period	98,742			98,403
Provision/ (credit) for loan losses:
Commercial and industrial	(425		)	(630		)
Commercial real estate	1,653			12,811
Construction and land	2,789			194
Residential mortgage	932			3,027
Home equity	8			161
Consumer and other	(405		)	363
Unallocated	(52		)	(266		)
Total provision for loan losses	4,500			15,660

(continued)



	At and for the three months ended September 30, 2011			At and for the nine months ended September 30, 2011
(continued)	(In thousands)
Loans charged off:
Commercial and industrial	$	(153	)	$	(2,205	)
Commercial real estate	(3,863		)	(15,782		)
Construction and land	(1,286		)	(3,516		)
Residential mortgage	(257		)	(1,302		)
Home equity	—			(95		)
Consumer and other	(24		)	(677		)
Total charge-offs	(5,583		)	(23,577		)
Recoveries on loans previously charged off:
Commercial and industrial	440			1,719
Commercial real estate	380			2,295
Construction and land	262			4,216
Residential mortgage	—			—
Home equity	9			11
Consumer and other	9			32
Total recoveries	1,100			8,273
Allowance for loan losses at September 30, 2011 (end of period):
Commercial and industrial	12,322			12,322
Commercial real estate	65,084			65,084
Construction and land	7,769			7,769
Residential mortgage	9,174			9,174
Home equity	1,308			1,308
Consumer and other	1,196			1,196
Unallocated	1,906			1,906
Total allowance for loan losses at September 30, 2011 (end of period)	$	98,759		$	98,759



	At and for the three months ended September 30, 2010			At and for the nine months ended September 30, 2010
	(In thousands)
Allowance for loan losses, beginning of period:	$	79,073		$	68,444
Provision for loan losses	32,050			54,627
Charge-offs	(14,204		)	(29,779		)
Recoveries	3,091			6,718
Allowance for loan losses at September 30, 2010 (end of period)	$	100,010		$	100,010

The following tables show the Company's allowance for loan losses and loan portfolio at September 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 September 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 September 30, 2011 attributable to:
Loans collectively evaluated for impairment	$	12,307	$	61,912	$	7,442	$	8,808
Loans individually evaluated for impairment	15		3,172		327		366
Total allowance for loan losses	$	12,322	$	65,084	$	7,769	$	9,174

Recorded investment (loan balance) at September 30, 2011:
Loans collectively evaluated for impairment	$	638,758	$	1,532,244	$	139,137	$	1,775,581
Loans individually evaluated for impairment	2,535		62,586		5,580		15,294
Total Loans	$	641,293	$	1,594,830	$	144,717	$	1,790,875



	Home equity		Consumer and other		Unallocated		Total
(Continued from above)	(In thousands)
Allowance for loan losses balance at September 30, 2011 attributable to:
Loans collectively evaluated for impairment	$	1,177	$	1,196	$	1,906	$	94,748
Loans individually evaluated for impairment	131		—		—		4,011
Total allowance for loan losses	$	1,308	$	1,196	$	1,906	$	98,759

Recorded investment (loan balance) at September 30, 2011:
Loans collectively evaluated for impairment	$	150,199	$	165,348	$	—	$	4,401,267
Loans individually evaluated for impairment	457		—		—		86,452
Total Loans	$	150,656	$	165,348	$	—	$	4,487,719



	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 nonaccrual 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.