LOANS AND LEASES

9 Months Ended

Sep. 30, 2012

LOANS AND LEASES

LOANS AND LEASES

NOTE 5—LOANS AND LEASES

• Non-Covered Loans and Leases

        When we refer to non-covered loans and leases we are referring to loans and leases not covered by our FDIC loss sharing agreements.

        The following table presents the composition of non-covered loans and leases by portfolio segment as of the dates indicated:

	September 30, 2012						December 31, 2011
Loan Segment	Amount			% of Total			Amount			% of Total
	(Dollars in thousands)
Real estate mortgage	$	1,928,890			63	%	$	1,982,464			70	%
Real estate construction		152,748			5			113,059			4
Commercial		772,768			25			671,939			24
Leases(1)		161,934			5			—			—
Consumer		20,615			1			23,711			1
Foreign		16,126			1			20,932			1
Total gross non-covered loans and leases		3,053,081			100	%		2,812,105			100	%
Less:
Unearned income		(2,190	)					(4,392	)
Allowance for loan and lease losses		(69,142	)					(85,313	)
Total net non-covered loans and leases	$	2,981,749					$	2,722,400

⁽¹⁾

Does not include leases in process of $15.1 million at September 30, 2012.

        The following tables present a summary of the activity in the allowance for loan and lease losses on non-covered loans by portfolio segment for the periods indicated:

	Three Months Ended September 30, 2012
	Real Estate Mortgage			Real Estate Construction			Commercial			Leases		Consumer			Foreign			Total
	(In thousands)
Allowance for Loan and Lease Losses on Non-Covered Loans and Leases:
Balance, beginning of period	$	42,236		$	5,496		$	21,979		$	498	$	1,735		$	117		$	72,061
Charge-offs		(1,118	)		(492	)		(492	)		—		(25	)		—			(2,127	)
Recoveries		845			11			218			—		32			2			1,108
Provision		(3,226	)		1,582			(685	)		629		(188	)		(12	)		(1,900	)
Balance, end of period	$	38,737		$	6,597		$	21,020		$	1,127	$	1,554		$	107		$	69,142

	Nine Months Ended September 30, 2012
	Real Estate Mortgage			Real Estate Construction			Commercial			Leases		Consumer			Foreign			Total
	(In thousands)
Allowance for Loan and Lease Losses on Non-Covered Loans and Leases:
Balance, beginning of period	$	50,205		$	8,697		$	23,308		$	—	$	2,768		$	335		$	85,313
Charge-offs		(5,891	)		(492	)		(2,715	)		—		(258	)		—			(9,356	)
Recoveries		1,217			35			1,232			—		79			22			2,585
Provision		(6,794	)		(1,643	)		(805	)		1,127		(1,035	)		(250	)		(9,400	)
Balance, end of period	$	38,737		$	6,597		$	21,020		$	1,127	$	1,554		$	107		$	69,142
The ending balance of the allowance is composed of amounts applicable to loans and leases:
Individually evaluated for impairment	$	5,568		$	2,468		$	6,051		$	—	$	265		$	—		$	14,352
Collectively evaluated for impairment	$	33,169		$	4,129		$	14,969		$	1,127	$	1,289		$	107		$	54,790
Non-Covered Loan and Lease Balances:
Ending balance	$	1,928,890		$	152,748		$	772,768		$	161,934	$	20,615		$	16,126		$	3,053,081
The ending balance of the non-covered loan and lease portfolio is composed of loans and leases:
Individually evaluated for impairment	$	99,137		$	31,792		$	17,847		$	420	$	623		$	—		$	149,819
Collectively evaluated for impairment	$	1,829,753		$	120,956		$	754,921		$	161,514	$	19,992		$	16,126		$	2,903,262

	Three Months Ended September 30, 2011
	Real Estate Mortgage			Real Estate Construction			Commercial			Consumer			Foreign			Total
	(In thousands)
Allowance for Loan Losses on Non-Covered Loans:
Balance, beginning of period	$	53,540		$	11,185		$	28,259		$	2,910		$	533		$	96,427
Charge-offs		(4,293	)		—			(2,237	)		(54	)		—			(6,584	)
Recoveries		225			33			235			74			—			567
Provision		2,341			(885	)		(925	)		(642	)		(189	)		(300	)
Balance, end of period	$	51,813		$	10,333		$	25,332		$	2,288		$	344		$	90,110

	Nine Months Ended September 30, 2011
	Real Estate Mortgage			Real Estate Construction			Commercial			Consumer			Foreign			Total
	(In thousands)
Allowance for Loan Losses on Non-Covered Loans:
Balance, beginning of period	$	51,657		$	8,766		$	33,229		$	4,652		$	349		$	98,653
Charge-offs		(9,859	)		(5,838	)		(7,967	)		(1,379	)		—			(25,043	)
Recoveries		349			1,021			1,160			1,375			45			3,950
Provision		9,666			6,384			(1,090	)		(2,360	)		(50	)		12,550
Balance, end of period	$	51,813		$	10,333		$	25,332		$	2,288		$	344		$	90,110
The ending balance of the allowance is composed of amounts applicable to loans:
Individually evaluated for impairment	$	6,399		$	3,363		$	7,035		$	2		$	—		$	16,799
Collectively evaluated for impairment	$	45,414		$	6,970		$	18,297		$	2,286		$	344		$	73,311
Non-Covered Loan Balances:
Ending balance	$	2,031,893		$	152,411		$	671,963		$	20,621		$	20,932		$	2,897,820
The ending balance of the non-covered loan portfolio is composed of loans:
Individually evaluated for impairment	$	91,495		$	32,621		$	21,692		$	565		$	—		$	146,373
Collectively evaluated for impairment	$	1,940,398		$	119,790		$	650,271		$	20,056		$	20,932		$	2,751,447

        The following table presents the credit risk rating categories for non-covered loans and leases by portfolio segment and class as of the dates indicated. Nonclassified loans and leases are those with a credit risk rating of either pass or special mention, while classified loans and leases are those with a credit risk rating of either substandard or doubtful.

	September 30, 2012						December 31, 2011
	Nonclassified		Classified		Total		Nonclassified		Classified		Total
	(In thousands)
Real estate mortgage:
Hospitality	$	105,417	$	12,772	$	118,189	$	123,071	$	21,331	$	144,402
SBA 504		48,971		6,112		55,083		51,522		6,855		58,377
Other		1,715,968		39,650		1,755,618		1,690,830		88,855		1,779,685
Total real estate mortgage		1,870,356		58,534		1,928,890		1,865,423		117,041		1,982,464
Real estate construction:
Residential		39,774		2,978		42,752		14,743		2,926		17,669
Commercial		102,098		7,898		109,996		64,667		30,723		95,390
Total real estate construction		141,872		10,876		152,748		79,410		33,649		113,059
Commercial:
Collateralized		417,379		15,651		433,030		395,041		18,979		414,020
Unsecured		84,374		2,961		87,335		75,017		3,920		78,937
Asset-based		225,700		701		226,401		149,947		40		149,987
SBA 7(a)		19,117		6,885		26,002		18,045		10,950		28,995
Total commercial		746,570		26,198		772,768		638,050		33,889		671,939
Leases		161,514		420		161,934		—		—		—
Consumer		19,745		870		20,615		22,730		981		23,711
Foreign		16,126		—		16,126		20,932		—		20,932
Total non-covered loans and leases	$	2,956,183	$	96,898	$	3,053,081	$	2,626,545	$	185,560	$	2,812,105

        In addition to our internal risk rating process, our federal and state banking regulators, as an integral part of their examination process, periodically review the Company's loan risk rating classifications. Our regulators may require the Company to recognize rating downgrades based on their judgments related to information available to them at the time of their examinations. Risk rating downgrades generally result in higher provisions for credit losses.

        The following tables present an aging analysis of our non-covered loans and leases by portfolio segment and class as of the dates indicated:

	September 30, 2012
	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Hospitality	$	—	$	—	$	—	$	—	$	118,189	$	118,189
SBA 504		2,926		—		522		3,448		51,635		55,083
Other		1,970		1,348		2,547		5,865		1,749,753		1,755,618
Total real estate mortgage		4,896		1,348		3,069		9,313		1,919,577		1,928,890
Real estate construction:
Residential		—		—		—		—		42,752		42,752
Commercial		—		—		—		—		109,996		109,996
Total real estate construction		—		—		—		—		152,748		152,748
Commercial:
Collateralized		12		—		2,027		2,039		430,991		433,030
Unsecured		—		—		238		238		87,097		87,335
Asset-based		—		—		—		—		226,401		226,401
SBA 7(a)		220		1,122		1,181		2,523		23,479		26,002
Total commercial		232		1,122		3,446		4,800		767,968		772,768
Leases		—		176		244		420		161,514		161,934
Consumer		23		—		8		31		20,584		20,615
Foreign		—		—		—		—		16,126		16,126
Total non-covered loans and leases	$	5,151	$	2,646	$	6,767	$	14,564	$	3,038,517	$	3,053,081

        At September 30, 2012 and December 31, 2011, the Company had no non-covered loans and leases that were greater than 90 days past due and still accruing interest. It is the Company's policy to discontinue accruing interest when principal or interest payments are past due 90 days or when, in the opinion of management, there is a reasonable doubt as to the collectibility of a loan or lease in the normal course of business. At September 30, 2012, nonaccrual loans and leases totaled $37.0 million. Nonaccrual loans and leases include $3.3 million of loans 30 to 89 days past due and $26.9 million of current loans and leases which have been placed on nonaccrual status based on management's judgment regarding the collectibility of such loans and leases.

	December 31, 2011
	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Hospitality	$	—	$	—	$	—	$	—	$	144,402	$	144,402
SBA 504		718		—		842		1,560		56,817		58,377
Other		12,953		191		13,205		26,349		1,753,336		1,779,685
Total real estate mortgage		13,671		191		14,047		27,909		1,954,555		1,982,464
Real estate construction:
Residential		—		475		—		475		17,194		17,669
Commercial		2,290		—		2,182		4,472		90,918		95,390
Total real estate construction		2,290		475		2,182		4,947		108,112		113,059
Commercial:
Collateralized		275		423		1,701		2,399		411,621		414,020
Unsecured		4		—		151		155		78,782		78,937
Asset-based		—		—		—		—		149,987		149,987
SBA 7(a)		996		646		274		1,916		27,079		28,995
Total commercial		1,275		1,069		2,126		4,470		667,469		671,939
Consumer		72		40		17		129		23,582		23,711
Foreign		—		—		—		—		20,932		20,932
Total non-covered loans	$	17,308	$	1,775	$	18,372	$	37,455	$	2,774,650	$	2,812,105

        Nonaccrual loans totaled $58.3 million at December 31, 2011, of which $2.5 million were 30 to 89 days past due and $37.4 million were current.

        The following table presents our nonaccrual and performing non-covered loans and leases by portfolio segment and class as of the dates indicated:

	September 30, 2012						December 31, 2011
	Nonaccrual		Performing		Total		Nonaccrual		Performing		Total
	(In thousands)
Real estate mortgage:
Hospitality	$	6,993	$	111,196	$	118,189	$	7,251	$	137,151	$	144,402
SBA 504		1,330		53,753		55,083		2,800		55,577		58,377
Other		9,031		1,746,587		1,755,618		21,286		1,758,399		1,779,685
Total real estate mortgage		17,354		1,911,536		1,928,890		31,337		1,951,127		1,982,464
Real estate construction:
Residential		1,063		41,689		42,752		1,086		16,583		17,669
Commercial		3,885		106,111		109,996		6,194		89,196		95,390
Total real estate construction		4,948		147,800		152,748		7,280		105,779		113,059
Commercial:
Collateralized		7,180		425,850		433,030		8,186		405,834		414,020
Unsecured		2,055		85,280		87,335		3,057		75,880		78,937
Asset-based		176		226,225		226,401		14		149,973		149,987
SBA 7(a)		4,433		21,569		26,002		7,801		21,194		28,995
Total commercial		13,844		758,924		772,768		19,058		652,881		671,939
Leases		420		161,514		161,934		—		—		—
Consumer		419		20,196		20,615		585		23,126		23,711
Foreign		—		16,126		16,126		—		20,932		20,932
Total non-covered loans and leases	$	36,985	$	3,016,096	$	3,053,081	$	58,260	$	2,753,845	$	2,812,105

        Nonaccrual loans and leases and performing restructured loans are considered impaired for reporting purposes. Impaired loans and leases by portfolio segment are as follows as of the dates indicated:

	September 30, 2012						December 31, 2011
Loan Segment	Nonaccrual Loans/Leases		Performing Restructured Loans		Total Impaired Loans/Leases		Nonaccrual Loans/Leases		Performing Restructured Loans		Total Impaired Loans/Leases
	(In thousands)
Real estate mortgage	$	17,354	$	81,783	$	99,137	$	31,337	$	87,484	$	118,821
Real estate construction		4,948		26,844		31,792		7,280		24,512		31,792
Commercial		13,844		4,003		17,847		19,058		4,652		23,710
Leases		420		—		420		—		—		—
Consumer		419		204		623		585		143		728
Total	$	36,985	$	112,834	$	149,819	$	58,260	$	116,791	$	175,051

        The following tables present information regarding our non-covered impaired loans and leases by portfolio segment and class for the dates indicated:

	September 30, 2012						December 31, 2011
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Hospitality	$	9,049	$	9,649	$	2,504	$	17,548	$	17,890	$	4,369
SBA 504		1,681		1,681		385		1,147		1,245		206
Other		32,495		32,630		2,679		78,349		81,921		6,919
Real estate construction:
Residential		1,283		1,307		177		2,766		2,776		409
Commercial		18,408		18,548		2,291		12,477		12,520		1,664
Commercial:
Collateralized		4,199		4,476		3,609		5,515		5,741		3,901
Unsecured		2,309		3,011		2,108		2,864		3,061		2,513
SBA 7(a)		2,042		2,172		334		3,397		3,428		379
Consumer		474		510		265		433		459		413
With No Related Allowance Recorded:
Real estate mortgage:
SBA 504	$	1,330	$	2,042	$	—	$	2,262	$	3,007	$	—
Other		54,582		58,205		—		19,515		22,999		—
Real estate construction:
Residential		753		753		—		611		611		—
Commercial		11,348		14,978		—		15,938		19,536		—
Commercial:
Collateralized		5,055		5,417		—		4,759		4,927		—
Unsecured		156		168		—		643		716		—
Asset-based		176		176		—		14		14		—
SBA 7(a)		3,910		5,959		—		6,518		8,181		—
Leases		420		420		—		—		—		—
Consumer		149		217		—		295		351		—
Total Non-Covered Loans and Leases With and Without An Allowance Recorded:
Real estate mortgage	$	99,137	$	104,207	$	5,568	$	118,821	$	127,062	$	11,494
Real estate construction		31,792		35,586		2,468		31,792		35,443		2,073
Commercial		17,847		21,379		6,051		23,710		26,068		6,793
Leases		420		420		—		—		—		—
Consumer		623		727		265		728		810		413
Total	$	149,819	$	162,319	$	14,352	$	175,051	$	189,383	$	20,773

	Three Months Ended September 30,
	2012				2011
	Weighted Average Recorded Investment(1)		Interest Income Recognized		Weighted Average Recorded Investment(1)		Interest Income Recognized
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Hospitality	$	9,049	$	107	$	17,634	$	162
SBA 504		927		25		1,159		8
Other		30,884		445		55,580		562
Real estate construction:
Residential		1,283		6		2,069		17
Commercial		18,408		178		20,969		197
Commercial:
Collateralized		4,199		45		4,568		26
Unsecured		2,309		40		4,748		6
SBA 7(a)		2,042		50		3,131		33
Consumer		474		6		69		—
With No Related Allowance Recorded:
Real estate mortgage:
SBA 504	$	1,330	$	17	$	2,348	$	—
Other		52,200		738		13,900		144
Real estate construction:
Residential		753		16		1,329		48
Commercial		11,348		128		4,849		114
Commercial:
Collateralized		4,972		92		2,198		—
Unsecured		156		3		574		2
Asset-based		176		—		15		—
SBA 7(a)		3,902		161		4,815		9
Leases		360		—		—		—
Consumer		149		5		496		—
Total Non-Covered Loans and Leases With and Without An Allowance Recorded:
Real estate mortgage	$	94,390	$	1,332	$	90,621	$	876
Real estate construction		31,792		328		29,216		376
Commercial		17,756		391		20,049		76
Leases		360		—		—		—
Consumer		623		11		565		—
Total	$	144,921	$	2,062	$	140,451	$	1,328

⁽¹⁾

For the loans and leases reported as impaired at the period-ends presented, amounts were calculated based on the period of time such loans and leases were impaired during the reporting period.

	Nine Months Ended September 30,
	2012				2011
	Weighted Average Recorded Investment(1)		Interest Income Recognized		Weighted Average Recorded Investment(1)		Interest Income Recognized
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Hospitality	$	9,049	$	315	$	17,435	$	519
SBA 504		545		17		820		13
Other		27,749		893		43,025		1,495
Real estate construction:
Residential		1,283		21		2,069		55
Commercial		18,408		504		16,293		337
Commercial:
Collateralized		3,773		99		3,644		40
Unsecured		2,302		120		4,739		16
SBA 7(a)		1,996		147		2,400		63
Consumer		370		15		69		—
With No Related Allowance Recorded:
Real estate mortgage:
SBA 504	$	1,330	$	80	$	2,348	$	—
Other		48,441		1,886		10,992		217
Real estate construction:
Residential		753		49		1,329		48
Commercial		10,598		382		4,849		163
Commercial:
Collateralized		4,796		229		2,133		(1	)
Unsecured		156		4		548		2
Asset-based		117		3		15		—
SBA 7(a)		3,771		478		4,704		9
Leases		256		—		—		—
Consumer		149		16		462		—
Total Non-Covered Loans and Leases With and Without An Allowance Recorded:
Real estate mortgage	$	87,114	$	3,191	$	74,620	$	2,244
Real estate construction		31,042		956		24,540		603
Commercial		16,911		1,080		18,183		129
Leases		256		—		—		—
Consumer		519		31		531		—
Total	$	135,842	$	5,258	$	117,874	$	2,976

⁽¹⁾

For the loans and leases reported as impaired at the period-ends presented, amounts were calculated based on the period of time such loans and leases were impaired during the reporting period.

        The following tables present non-covered new troubled debt restructurings and defaulted troubled debt restructurings for the periods indicated:

	Three Months Ended September 30,
	2012						2011
	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(Dollars in thousands)
Troubled Debt Restructurings:
Real estate mortgage:
SBA 504		1	$	1,118	$	1,118		—	$	—	$	—
Other		4		10,119		10,119		8		5,189		4,998
Real estate construction:
Commercial		1		6,973		6,973		1		2,082		2,082
Commercial:
Collateralized		2		370		370		2		477		477
Unsecured		—		—		—		1		450		450
SBA 7(a)		2		70		70		5		344		344
Consumer		1		206		206		—		—		—
Total		11	$	18,856	$	18,856		17	$	8,542	$	8,351

	Nine Months Ended September 30,
	2012						2011
	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(Dollars in thousands)
Troubled Debt Restructurings:
Real estate mortgage:
Hospitality		—	$	—	$	—		1	$	2,086	$	2,086
SBA 504		2		1,680		1,680		2		1,089		1,089
Other		4		10,119		10,119		20		22,886		22,695
Real estate construction:
Commercial		2		8,419		8,419		5		14,626		14,626
Commercial:
Collateralized		7		1,545		1,545		8		2,425		2,425
Unsecured		3		38		38		1		450		450
SBA 7(a)		4		299		299		12		2,048		2,048
Consumer		1		206		206		—		—		—
Total		23	$	22,306	$	22,306		49	$	45,610	$	45,419

	Three Months Ended September 30,
	2012				2011
	Number of Loans		Recorded Investment(1)		Number of Loans		Recorded Investment(2)
	(Dollars in thousands)
Troubled Debt Restructurings That Subsequently Defaulted(3):
Real estate mortgage—Other		2	$	627		4	$	5,566
Commercial—SBA 7(a)		2		118		1		448
Total		4	$	745		5	$	6,014

⁽¹⁾

Represents the balance at September 30, 2012 and is net of charge-offs of $82,000.

⁽²⁾

Represents the balance at September 30, 2011 and is net of charge-offs of $2.1 million.

⁽³⁾

The population of defaulted restructured loans for the period indicated includes only those loans restructured during the preceding 12-month period. The table excludes defaulted troubled debt restructurings in those classes for which the recorded investment was zero at the end of the period.

	Nine Months Ended September 30,
	2012				2011
	Number of Loans		Recorded Investment(1)		Number of Loans		Recorded Investment(2)
	(Dollars in thousands)
Troubled Debt Restructurings That Subsequently Defaulted(3):
Real estate mortgage—Other		2	$	627		4	$	5,566
Commercial:
Collateralized		7		828		—		—
Unsecured		2		93		—		—
SBA 7(a)		3		991		1		448
Total		14	$	2,539		5	$	6,014

⁽¹⁾

Represents the balance at September 30, 2012 and is net of charge-offs of $613,000.

⁽²⁾

Represents the balance at September 30, 2011 and is net of charge-offs of $3.0 million.

⁽³⁾

The population of defaulted restructured loans for the period indicated includes only those loans restructured during the preceding 12-month period. The table excludes defaulted troubled debt restructurings in those classes for which the recorded investment was zero at the end of the period.

• Covered Loans

        We refer to the loans acquired in the Los Padres and Affinity acquisitions that are subject to loss sharing agreements with the FDIC as "covered loans" as we will be reimbursed for a substantial portion of any future losses on them under the terms of the agreements.

        The following table reflects the carrying values of covered loans as of the dates indicated:

	September 30, 2012						December 31, 2011
	Amount			% of Total			Amount			% of Total
	(Dollars in thousands)
Real estate mortgage:
Hospitality	$	2,903			—		$	2,944			—
Other		603,521			93	%		733,414			91	%
Total real estate mortgage		606,424			93	%		736,358			91	%
Real estate construction:
Residential		7,092			1	%		21,521			3	%
Commercial		19,503			3	%		25,397			3	%
Total real estate construction		26,595			4	%		46,918			6	%
Commercial:
Collateralized		16,215			3	%		24,808			3	%
Unsecured		685			—			802			—
Total commercial		16,900			3	%		25,610			3	%
Consumer		618			—			735			—
Total gross covered loans		650,537			100	%		809,621			100	%
Discount		(52,437	)					(75,323	)
Allowance for loan losses		(30,704	)					(31,275	)
Covered loans, net	$	567,396					$	703,023

        The following table summarizes the changes in the carrying amount of covered acquired impaired loans and accretable yield on those loans for the period indicated:

	Covered Acquired Impaired Loans
	Carrying Amount			Accretable Yield
	(In thousands)
Balance, December 31, 2011	$	677,014		$	(259,265	)
Accretion		38,417			38,417
Payments received		(168,710	)		—
Decrease in expected cash flows, net		—			20,616
Provision for credit losses		(3,514	)		—
Balance, September 30, 2012	$	543,207		$	(200,232	)

        The table above excludes the covered loans from the Los Padres acquisition which are accounted for as non-impaired loans and totaled $24.2 million and $26.0 million at September 30, 2012 and December 31, 2011, respectively.

        The following table presents the credit risk rating categories for covered loans by portfolio segment as of the dates indicated. Nonclassified loans are those with a credit risk rating of either pass or special mention, while classified loans are those with a credit risk rating of either substandard or doubtful. It should be noted, however, that all of these loans are covered by loss sharing agreements with the FDIC.

	September 30, 2012						December 31, 2011
	Nonclassified		Classified		Total		Nonclassified		Classified		Total
	(In thousands)
Real estate mortgage	$	363,033	$	167,597	$	530,630	$	478,119	$	163,768	$	641,887
Real estate construction		4,705		18,632		23,337		5,762		35,337		41,099
Commercial		6,088		6,721		12,809		11,076		8,221		19,297
Consumer		124		496		620		178		562		740
Total covered loans, net	$	373,950	$	193,446	$	567,396	$	495,135	$	207,888	$	703,023

        In addition to our internal risk rating process, our federal and state banking regulators, as an integral part of their examination process, periodically review the Company's loan risk rating classifications. Our regulators may require the Company to recognize rating downgrades based on their judgments related to information available to them at the time of their examinations.