LOANS AND ALLOWANCE FOR LOAN LOSSES

Following is a summary of loans, net of unearned income:


	March 31, 2012		December 31, 2011
Commercial real estate	$	2,521,571	$	2,341,646
Commercial real estate – FL		135,547		154,081
Commercial and industrial		1,451,144		1,363,692
Commercial leases		118,050		110,795

Total commercial loans and leases		4,226,312		3,970,214
Direct installment		1,082,964		1,029,187
Residential mortgages		1,187,448		670,936
Indirect installment		563,929		540,789
Consumer lines of credit		704,773		607,280
Other		37,366		38,261

	$	7,802,792	$	6,856,667

Commercial loans include both owner occupied and non-owner occupied loans secured by commercial properties, as well as commercial and industrial loans. Commercial leases consist of loans for new or used equipment. Direct installment is comprised of fixed-rate, closed-end consumer loans for personal, family or household use, such as home equity loans and automobile loans. Residential mortgages consist of conventional and jumbo mortgage loans for non-commercial properties. Indirect installment is comprised of loans written by third parties, primarily automobile loans. Consumer lines of credit include home equity lines of credit (HELOC) and consumer lines of credit that are either unsecured or secured by collateral other than home equity. Other is comprised primarily of mezzanine loans and student loans.

The loan portfolio consists principally of loans to individuals and small- and medium-sized businesses within the Corporation's primary market area of Pennsylvania and northeastern Ohio. The portfolio also includes commercial real estate loans in Florida, of which 32% were land-related and 68% were non land-related as of March 31, 2012. Additionally, the portfolio contains consumer finance loans to individuals in Pennsylvania, Ohio, Tennessee and Kentucky, which totaled $157,885 or 2.0% of total loans as of March 31, 2012, compared to $163,856 or 2.4% of total loans as of December 31, 2011. Due to the relative insignificance of these consumer finance loans and the lower risk profile relative to the Florida loans, they are not segregated from other consumer loans.

As of March 31, 2012, approximately 54% of the commercial real estate loans, including those in Florida, were owner-occupied, while the remaining 46% were non-owner-occupied. As of March 31, 2012 and December 31, 2011, the Corporation had commercial construction loans of $189,233 and $210,098, respectively, representing 2.4% and 3.1% of total loans, respectively.

For each reporting period, total cash flows (both principal and interest) expected to be collected over the remaining life of the loan incorporate assumptions regarding default rates, loss severities, the amounts and timing of prepayments, the value of underlying collateral based on independent appraisals that the Corporation reviews for acceptability and considering the time and costs of foreclosure and disposition of the collateral and other factors that reflect then-current market conditions. The Corporation modifies, updates and refines assumptions as circumstances change. Contractual cash flows at each reporting period are determined utilizing the amortized cost method of loan accounting after recognition of contractual interest.

Purchased Credit-Impaired (PCI) Loans

The Corporation has acquired loans for which there was evidence of deterioration of credit quality since origination and for which it was probable, at acquisition, that all contractually required payments would not be collected.

Following are provisional amounts recognized for PCI loans identified in the Corporation's acquisition of Parkvale:


	At Acquisition
Contractually required principal and interest at acquisition	$	8,989
Contractual cash flows not expected to be collected (non-accretable difference)		2,835

Expected cash flows at acquisition		6,154
Interest component of expected cash flows (accretable difference)		589

Fair value at acquisition	$	5,565

Following is additional information about PCI loans identified in the Corporation's acquisition of Parkvale:


	At Acquisition		March 31, 2012
Outstanding balance	$	8,989	$	9,074
Carrying amount		5,565		5,492
Allowance for loan losses		n/a		—
Impairment recognized since acquisition		n/a		—
Allowance reduction recognized since acquisition		n/a		—


	Contractual Receivable			Non- Accretable Difference			Expected Cash Flows			Accretable Yield			Carrying Amount
For the Three Months Ended March 31, 2012
Balance at beginning of period	$	51,693		$	(33,377	)	$	18,316		$	(2,477	)	$	15,839
Acquisitions		8,989			(2,835	)		6,154			(589	)		5,565
Accretion		—			—			—			205			205
Payments received		(2,402	)		—			(2,402	)		—			(2,402	)
Reclass from non-accretable difference		—			117			117			(117	)		—
Disposals/transfers		—			—			—			—			—
Contractual interest		855			(855	)		—			—			—

Balance at end of period	$	59,135		$	(36,950	)	$	22,185		$	(2,978	)	$	19,207

For the Year Ended December 31, 2011
Balance at beginning of period	$	20,356		$	(15,589	)	$	4,767		$	(791	)	$	3,976
Acquisitions		38,890			(19,401	)		19,489			(2,025	)		17,464
Accretion		—			—			—			903			194
Payments received		(4,784	)		—			(4,784	)		—			(4,075	)
Reclass from non-accretable difference		—			709			709			(709	)		—
Disposals/transfers		(6,128	)		4,263			(1,865	)		145			(1,720	)
Contractual interest		3,359			(3,359	)		—			—			—

Balance at end of period	$	51,693		$	(33,377	)	$	18,316		$	(2,477	)	$	15,839

The accretion in the table above includes $117 in 2012 and $709 in 2011 that primarily represents payoffs received on certain loans in excess of expected cash flows.

Credit Quality

Management monitors the credit quality of the Corporation's loan portfolio on an ongoing basis. Measurement of delinquency and past due status are based on the contractual terms of each loan.

Non-performing loans include non-accrual loans and non-performing troubled debt restructurings (TDRs). Past due loans are reviewed on a monthly basis to identify loans for non-accrual status. The Corporation places a loan on non-accrual status and discontinues interest accruals generally when principal or interest is due and has remained unpaid for 90 to 180 days depending on the loan type. When a loan is placed on non-accrual status, all unpaid interest recognized in the current year is reversed. Non-accrual loans may not be restored to accrual status until all delinquent principal and interest have been paid and the ultimate collectibility of the remaining principal and interest is reasonably assured. TDRs are loans in which the borrower has been granted a concession on the interest rate or the original repayment terms due to financial distress. Non-performing assets also include debt securities on which OTTI has been taken in the current or prior periods that have not been returned to accrual status.

Following is a summary of non-performing assets:


	March 31, 2012		December 31, 2011
Non-accrual loans	$	98,418	$	94,335
Troubled debt restructurings		11,416		11,893

Total non-performing loans		109,834		106,228
Other real estate owned (OREO)		36,958		34,719

Total non-performing loans and OREO		146,792		140,947
Non-performing investments		3,478		8,972

Total non-performing assets	$	150,270	$	149,919


	March 31, 2012			December 31, 2011
Asset quality ratios:
Non-performing loans as a percent of total loans		1.41	%		1.55	%
Non-performing loans + OREO as a percent of total loans + OREO		1.87	%		2.05	%
Non-performing assets as a percent of total assets		1.28	%		1.53	%

Following is an age analysis of the Corporation's past due loans, by class:


	30-89 Days Past Due		>90 Days Past Due and Still Accruing		Non- Accrual		Total Past Due		Current		Total Loans
March 31, 2012
Commercial real estate	$	13,613	$	16,772	$	39,575	$	69,960	$	2,451,611	$	2,521,571
Commercial real estate – FL		—		—		39,021		39,021		96,526		135,547
Commercial and industrial		3,837		998		7,622		12,457		1,438,687		1,451,144
Commercial leases		1,999		—		1,176		3,175		114,875		118,050

Total commercial loans and leases		19,449		17,770		87,394		124,613		4,101,699		4,226,312
Direct installment		7,662		2,691		3,100		13,453		1,069,511		1,082,964
Residential mortgages		16,465		25,589		2,818		44,872		1,142,576		1,187,448
Indirect installment		3,398		415		986		4,799		559,130		563,929
Consumer lines of credit		1,804		1,038		620		3,462		701,311		704,773
Other		39		12		3,500		3,551		33,815		37,366

	$	48,817	$	47,515	$	98,418	$	194,750	$	7,608,042	$	7,802,792

December 31, 2011
Commercial real estate	$	13,868	$	9,612	$	37,134	$	60,614	$	2,281,032	$	2,341,646
Commercial real estate – FL		—		—		39,122		39,122		114,959		154,081
Commercial and industrial		2,164		690		6,956		9,810		1,353,882		1,363,692
Commercial leases		1,102		5		1,084		2,191		108,604		110,795

Total commercial loans and leases		17,134		10,307		84,296		111,737		3,858,477		3,970,214
Direct installment		8,228		3,614		2,525		14,367		1,014,820		1,029,187
Residential mortgages		14,492		3,342		2,443		20,277		650,659		670,936
Indirect installment		5,031		282		918		6,231		534,558		540,789
Consumer lines of credit		1,253		586		653		2,492		604,788		607,280
Other		36		—		3,500		3,536		34,725		38,261

	$	46,174	$	18,131	$	94,335	$	158,640	$	6,698,027	$	6,856,667

The Corporation utilizes the following categories to monitor credit quality within its commercial loan portfolio:


Rating Category		Definition

Pass		in general, the condition of the borrower and the performance of the loan is satisfactory or better

Special Mention		in general, the condition of the borrower has deteriorated although the loan performs as agreed

Substandard		in general, the condition of the borrower has significantly deteriorated and the performance of the loan could further deteriorate if deficiencies are not corrected

Doubtful		in general, the condition of the borrower has significantly deteriorated and the collection in full of both principal and interest is highly questionable or improbable

The use of these internally assigned credit quality categories within the commercial loan portfolio permits management's use of migration and roll rate analysis to estimate a quantitative portion of credit risk. The Corporation's internal credit risk grading system is based on past experiences with similarly graded loans and conforms with regulatory categories. In general, loan risk ratings within each category are reviewed on an ongoing basis according to the Corporation's policy for each class of loans. Each quarter, management analyzes the resulting ratings, as well as other external statistics and factors such as delinquency, to track the migration performance of the commercial loan portfolio. Loans that migrate toward the Pass credit category or within the Pass credit category generally have a lower risk of loss and; therefore, a lower risk factor compared to loans that migrate toward the Substandard or Doubtful credit categories, which generally have a higher risk of loss and; therefore, a higher risk factor applied to those related loan balances.

Following is a table showing commercial loans by credit quality category:


	Commercial Loan Credit Quality Categories
	Pass		Special Mention		Substandard		Doubtful		Total
March 31, 2012
Commercial real estate	$	2,278,693	$	81,587	$	152,581	$	8,710	$	2,521,571
Commercial real estate – FL		69,723		12,921		52,903		—		135,547
Commercial and industrial		1,353,573		52,008		43,948		1,615		1,451,144
Commercial leases		116,015		151		1,884		—		118,050

	$	3,818,004	$	146,667	$	251,316	$	10,325	$	4,226,312

December 31, 2011
Commercial real estate	$	2,127,334	$	73,701	$	139,578	$	1,033	$	2,341,646
Commercial real estate – FL		70,802		16,002		67,277		—		154,081
Commercial and industrial		1,275,230		49,282		38,171		1,009		1,363,692
Commercial leases		105,631		3,362		1,802		—		110,795

	$	3,578,997	$	142,347	$	246,828	$	2,042	$	3,970,214

The Corporation uses payment status and delinquency migration analysis within the consumer and other loan classes to enable management to estimate a quantitative portion of credit risk. Each month, management analyzes payment and volume activity, as well as other external statistics and factors such as unemployment, to determine how consumer loans are performing.

Following is a table showing consumer and other loans by payment activity:


	Consumer Loan Credit Quality by Payment Status
	Performing		Non-Performing		Total
March 31, 2012
Direct installment	$	1,075,957	$	7,007	$	1,082,964
Residential mortgages		1,177,299		10,149		1,187,448
Indirect installment		562,881		1,048		563,929
Consumer lines of credit		704,038		735		704,773
Other		33,866		3,500		37,366

December 31, 2011
Direct installment	$	1,022,025	$	7,162	$	1,029,187
Residential mortgages		661,392		9,544		670,936
Indirect installment		539,810		979		540,789
Consumer lines of credit		606,533		747		607,280
Other		34,761		3,500		38,261

Loans are designated as impaired when, in the opinion of management, based on current information and events, the collection of principal and interest in accordance with the loan contract is doubtful. Typically, the Corporation does not consider loans for impairment unless a sustained period of delinquency (i.e., 90-plus days) is noted or there are subsequent events that impact repayment probability (i.e., negative financial trends, bankruptcy filings, imminent foreclosure proceedings, etc.). Impairment is evaluated in the aggregate for consumer installment loans, residential mortgages, consumer lines of credit, commercial leases and commercial loan relationships less than $500. For loan relationships greater than or equal to $500, a specific valuation allowance is allocated, if necessary, so that the loan is reported net, at the present value of estimated future cash flows using a market interest rate or at the fair value of collateral if repayment is expected solely from the collateral. Consistent with the Corporation's existing method of income recognition for loans, interest on impaired loans, except those classified as non-accrual, is recognized as income using the accrual method. Impaired loans, or portions thereof, are charged off when deemed uncollectible.

Following is a summary of information pertaining to loans considered to be impaired, by class of loans:


	Recorded Investment		Unpaid Principal Balance		Specific Related Allowance		Average Recorded Investment		Interest Income Recognized
At or For the Three Months Ended March 31, 2012
With no specific allowance recorded:
Commercial real estate	$	33,672	$	40,398	$	—	$	30,915	$	151
Commercial real estate - FL		14,255		24,588		—		21,490		33
Commercial and industrial		7,705		10,263		—		5,966		7
Commercial leases		1,176		1,176		—		1,130		—

Total commercial loans and leases		56,808		76,425		—		59,501		191
Direct installment		7,007		7,190		—		7,085		31
Residential mortgages		10,138		10,493		—		9,841		80
Indirect installment		1,048		1,294		—		1,013		3
Consumer lines of credit		735		750		—		741		—
Other		3,500		3,500		—		3,500		—
Purchased credit-impaired loans		19,207		23,308		—		15,417		—

With a specific allowance recorded:
Commercial real estate		4,414		4,414		2,137		6,409		25
Commercial real estate - FL		24,766		39,740		3,389		17,583		—
Commercial and industrial		658		658		556		2,123		3
Commercial leases		—		—		—		—		—

Total commercial loans and leases		29,838		44,812		6,082		26,115		28
Direct installment		—		—		—		—		—
Residential mortgages		—		—		—		—		—
Indirect installment		—		—		—		—		—
Consumer lines of credit		—		—		—		—		—
Other		—		—		—		—		—
Purchased credit-impaired loans		—		—		—		—		—

Total:
Commercial real estate		38,086		44,812		2,137		37,324		176
Commercial real estate - FL		39,021		64,328		3,389		39,073		33
Commercial and industrial		8,363		10,921		556		8,089		10
Commercial leases		1,176		1,176		—		1,130		—

Total commercial loans and leases		86,646		121,237		6,082		85,616		219
Direct installment		7,007		7,190		—		7,085		31
Residential mortgages		10,138		10,493		—		9,841		80
Indirect installment		1,048		1,294		—		1,013		3
Consumer lines of credit		735		750		—		741		—
Other		3,500		3,500		—		3,500		—
Purchased credit-impaired loans		19,207		23,308		—		15,417		—

At or For the Year Ended December 31, 2011
With no specific allowance recorded:
Commercial real estate	$	28,163	$	32,476	$	—	$	31,432	$	151
Commercial real estate - FL		28,721		46,162		—		29,630		33
Commercial and industrial		4,228		4,971		—		4,610		17
Commercial leases		1,084		1,084		—		1,217		—

Total commercial loans and leases		62,196		84,693		—		66,889		201
Direct installment		7,162		7,522		—		7,530		207
Residential mortgages		9,544		9,839		—		10,278		175
Indirect installment		979		1,071		—		973		24
Consumer lines of credit		747		761		—		947		8
Other		3,500		3,500		—		1,750		—
Purchased credit-impaired loans		15,839		18,743		—		15,326		—

With a specific allowance recorded:
Commercial real estate		8,403		8,423		2,482		8,875		32
Commercial real estate - FL		10,401		18,195		2,389		16,559		21
Commercial and industrial		3,588		3,750		2,276		3,603		20
Commercial leases		—		—		—		—		—

Total commercial loans and leases		22,392		30,368		7,147		29,037		73
Direct installment		—		—		—		—		—
Residential mortgages		—		—		—		—		—
Indirect installment		—		—		—		—		—
Consumer lines of credit		—		—		—		—		—
Other		—		—		—		—		—
Purchased credit-impaired loans		—		—		—		—		—

Total:
Commercial real estate		36,566		40,899		2,482		40,307		183
Commercial real estate - FL		39,122		64,357		2,389		46,189		54
Commercial and industrial		7,816		8,721		2,276		8,213		37
Commercial leases		1,084		1,084		—		1,217		—

Total commercial loans and leases		84,588		115,061		7,147		95,926		274
Direct installment		7,162		7,522		—		7,530		207
Residential mortgages		9,544		9,839		—		10,278		175
Indirect installment		979		1,071		—		973		24
Consumer lines of credit		747		761		—		947		8
Other		3,500		3,500		—		1,750		—
Purchased credit-impaired loans		15,839		18,743		—		15,326		—

Troubled Debt Restructurings

TDRs are loans whose contractual terms have been modified in a manner that grants a concession to a borrower experiencing financial difficulties. TDRs typically result from loss mitigation activities and could include the extension of a maturity date, interest rate reduction, principal forgiveness, deferral or decrease in payments for a period of time and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of collateral.

Following is a summary of the composition of total TDRs:


	March 31, 2012		December 31, 2011
Accruing:
Performing	$	10,599	$	10,130
Non-performing		11,416		11,893
Non-accrual		11,044		10,827

	$	33,059	$	32,850

TDRs that are accruing and performing include loans that met the criteria for non-accrual of interest prior to restructuring for which the Corporation can reasonably estimate the timing and amount of the expected cash flows on such loans and for which the Corporation expects to fully collect the new carrying value of the loans. During the first three months of 2012, the Corporation returned to performing status $1,582 in restructured loans, all of which were secured by residential mortgages that have consistently met their modified obligations for an extended period of time. TDRs that are accruing and non-performing are comprised of loans that have not demonstrated a consistent repayment pattern for more than six months. TDRs that are on non-accrual are comprised of loans that have been 90 days or more past due at some point in time. These loans are not placed on accruing status until all delinquent principal and interest have been paid and the ultimate collectibility of the remaining principal and interest is reasonably assured as evidenced by a period of satisfactory performance of greater than six months. Some loan modifications classified as TDRs may not ultimately result in the full collection of principal and interest, as modified, and result in potential incremental losses which are factored into the allowance for loan losses estimate.

Excluding purchased impaired loans, commercial loans whose terms have been modified in a TDR are generally placed on non-accrual, individually analyzed and measured for estimated impairment based on the fair value of the underlying collateral. The Corporation's allowance for loan losses included specific reserves for commercial TDRs of $0 and $41 at March 31, 2012 and December 31, 2011, respectively. Upon default, the amount of the recorded investment in the TDR in excess of the fair value of the collateral less estimated selling costs is generally considered a confirmed loss and is charged-off against the allowance for loan losses.

All other classes of loans, which are primarily secured by residential properties, whose terms have been modified in a TDR are pooled and measured for estimated impairment based on the expected net present value of the estimated future cash flows of the pool. The Corporation's allowance for loan losses included pooled reserves for these classes of loans of $1,082 and $847 at March 31, 2012 and December 31, 2011, respectively. Upon default of an individual loan, the Corporation's charge-off policy is followed accordingly for that class of loan.

The majority of TDRs are the result of interest rate concessions for a limited period of time. Following is a summary of loans, by class, that have been restructured during the periods indicated:


	Three Months Ended March 31, 2012
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial real estate		—	$	—	$	—
Commercial real estate - FL		—		—		—
Commercial and industrial		1		117		73
Commercial leases		—		—		—

Total commercial loans and leases		1		117		73
Direct installment		94		600		605
Residential mortgages		13		377		416
Indirect installment		6		9		9
Consumer lines of credit		2		3		3
Other		—		—		—

		116	$	1,106	$	1,106

Following is a summary of TDRs, by class of loans, for which there was a payment default during the periods indicated. Default occurs when a loan is 90 days or more past due and is within 12 months of restructuring.


	Three Months Ended March 31, 2012 (1)
	Number of Contracts		Recorded Investment
Commercial real estate		—	$	—
Commercial real estate - FL		—		—
Commercial and industrial		—		—
Commercial leases		—		—

Total commercial loans and leases		—		—
Direct installment		—		—
Residential mortgages		14		29
Indirect installment		2		158
Consumer lines of credit		1		1
Other		—		—

		17	$	188

(1)	Excludes loans that were either charged-off or cured by period end. The recorded investment is as of March 31, 2012.

Allowance for Loan Losses

The allowance for loan losses is maintained at a level that, in management's judgment, is believed adequate to absorb probable losses associated with specifically identified loans, as well as estimated probable credit losses inherent in the remainder of the loan portfolio at the balance sheet date. The allowance for loan losses is based on management's evaluation of potential loan losses in the loan portfolio, which includes an assessment of past experience, current economic conditions in specific industries and geographic areas, general economic conditions, known and inherent risks in the loan portfolio, the estimated value of underlying collateral and residuals and changes in the composition of the loan portfolio. Determination of the allowance is inherently subjective as it requires significant estimates, including the amounts and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans based on historical loss experience and consideration of current environmental factors and economic trends, all of which are susceptible to significant change. Loan losses are charged off against the allowance when the loss actually occurs or when a determination is made that a loss is probable, while recoveries of amounts previously charged off are credited to the allowance. A provision for credit losses is recorded based on management's periodic evaluation of the factors previously mentioned as well as other pertinent factors. Evaluations are conducted at least quarterly and more often as deemed necessary.

Management estimates the allowance for loan losses pursuant to ASC 450, Contingencies, and ASC 310, Receivables. ASC 310 is applied to commercial loans that are individually evaluated for impairment. Under ASC 310, a loan is impaired when, based upon current information and events, it is probable that the loan will not be repaid according to its original contractual terms, including both principal and interest. Management performs individual assessments of impaired commercial loan relationships greater than or equal to $500 to determine the existence of loss exposure and, where applicable, the extent of loss exposure based upon the present value of expected future cash flows available to pay the loan, or based upon the fair value of the collateral less estimated selling costs where a loan is collateral dependent. Commercial loans excluded from individual assessment, as well as smaller balance homogeneous loans, such as consumer installment, residential mortgages, consumer lines of credit and commercial leases, are evaluated for loss exposure under ASC 450 based upon historical loss rates for each of these categories of loans.

During the first quarter of 2012, the Corporation adjusted its methodology for calculating the allowance for loan losses to refine the supporting calculations. The minimum threshold for individual commercial relationships evaluated for impairment and specific valuation under ASC 310 is now $500. The historical loss period for commercial loan loss rate analysis was adjusted to utilize a full 3-year period migration model. These changes along with related higher loss rates for commercial loans under $500 resulted in a slight increase in the overall allowance for loan losses. The changes appropriately reflect inherent loss in the portfolio during this recovery stage of the current economic cycle. The 3-year period captures both a steep economic decline and a moderate recovery.

Management also evaluates the impact of various qualitative factors which pose additional risks that may not adequately be addressed in the analyses described above. Historical loss rates for each loan category may be adjusted for levels of and trends in loan volumes, large exposures, charge-offs, recoveries, delinquency, non-performing and other impaired loans. In addition, management takes into consideration the impact of changes to lending policies; the experience and depth of lending management and staff; the results of internal loan reviews; concentrations of credit; mergers and acquisitions; weighted average risk ratings; competition, legal and regulatory risk; market uncertainty and collateral illiquidity; national and local economic trends; or any other common risk factor that might affect loss experience across one or more components of the portfolio. The assessment of relevant economic factors indicates that the Corporation's primary markets historically tend to lag the national economy, with local economies in the Corporation's primary market areas also improving or weakening, as the case may be, but at a more measured rate than the national trends. Regional economic factors influencing management's estimate of reserves include uncertainty of the labor markets in the regions the Corporation serves and a contracting labor force due, in part, to productivity growth and industry consolidations. The determination of this component of the allowance is particularly dependent on the judgment of management.

Following are summaries of changes in the allowance for loan losses by loan class for the periods indicated:


	Balance at Beginning of Period		Charge- Offs			Recoveries		Net Charge- Offs			Provision for Loan Losses		Balance at End of Period
Three Months Ended March 31, 2012
Commercial real estate	$	30,337	$	(1,357	)	$	150	$	(1,207	)	$	2,312	$	31,442
Commercial real estate - FL		12,946		—			9		9			—		12,955
Commercial and industrial		25,476		(1,080	)		109		(971	)		2,369		26,874
Commercial leases		1,556		(135	)		66		(69	)		182		1,669

Total commercial loans and leases		70,315		(2,572	)		334		(2,238	)		4,863		72,940
Direct installment		14,814		(2,124	)		267		(1,857	)		793		13,750
Residential mortgages		4,437		(147	)		77		(70	)		132		4,499
Indirect installment		5,503		(725	)		132		(593	)		475		5,385
Consumer lines of credit		5,447		(299	)		75		(224	)		138		5,361
Other		146		(159	)		—		(159	)		171		158
Purchased credit-impaired loans		—		—			—		—			—		—

	$	100,662	$	(6,026	)	$	885	$	(5,141	)	$	6,572	$	102,093


	Balance at Beginning of Period		Charge- Offs			Recoveries		Net Charge- Offs			Provision for Loan Losses		Balance at End of Period
Three Months Ended March 31, 2011
Commercial real estate	$	32,439	$	(1,181	)	$	82	$	(1,099	)	$	3,003	$	34,343
Commercial real estate - FL		17,485		(1,147	)		—		(1,147	)		1,599		17,937
Commercial and industrial		24,682		(961	)		58		(903	)		349		24,128
Commercial leases		1,070		(85	)		17		(68	)		252		1,254

Total commercial loans and leases		75,676		(3,374	)		157		(3,217	)		5,203		77,662
Direct installment		14,941		(2,228	)		229		(1,999	)		1,825		14,767
Residential mortgages		4,578		(238	)		8		(230	)		166		4,514
Indirect installment		5,941		(933	)		138		(795	)		615		5,761
Consumer lines of credit		4,743		(396	)		43		(353	)		222		4,612
Other		241		(164	)		22		(142	)		197		296
Purchased credit-impaired loans		—		—			—		—			—		—

	$	106,120	$	(7,333	)	$	597	$	(6,736	)	$	8,228	$	107,612

Following are summaries of the individual and collective allowance for loan losses and corresponding loan balances by class for the periods indicated:


	Allowance						Loans Outstanding
	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Credit- Impaired Loans		Loans		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Credit- Impaired Loans
March 31, 2012
Commercial real estate	$	2,137	$	29,305		—	$	2,521,571	$	38,086	$	2,464,278	$	19,207
Commercial real estate – FL		3,389		9,566		—		135,547		39,021		96,526		—
Commercial and industrial		556		26,318		—		1,451,144		8,363		1,442,781		—
Commercial leases		—		1,669		—		118,050		—		118,050		—

Total commercial loans and leases		6,082		66,858		—		4,226,312		85,470		4,122,635		19,207
Direct installment		—		13,750		—		1,082,964		—		1,082,964		—
Residential mortgages		—		4,499		—		1,187,448		—		1,187,448		—
Indirect installment		—		5,385		—		563,929		—		563,929		—
Consumer lines of credit		—		5,361		—		704,773		—		704,773		—
Other		—		158		—		37,366		—		37,366		—

	$	6,082	$	96,011		—	$	7,802,792	$	85,470	$	7,698,115	$	19,207

December 31, 2011
Commercial real estate	$	2,482	$	27,855		—	$	2,341,646	$	36,566	$	2,289,241	$	15,839
Commercial real estate – FL		2,389		10,557		—		154,081		39,122		114,959		—
Commercial and industrial		2,276		23,200		—		1,363,692		7,816		1,355,876		—
Commercial leases		—		1,556		—		110,795		—		110,795		—

Total commercial loans and leases		7,147		63,168		—		3,970,214		83,504		3,870,871		15,839
Direct installment		—		14,814		—		1,029,187		—		1,029,187		—
Residential mortgages		—		4,437		—		670,936		—		670,936		—
Indirect installment		—		5,503		—		540,789		—		540,789		—
Consumer lines of credit		—		5,447		—		607,280		—		607,280		—
Other		—		146		—		38,261		—		38,261		—

	$	7,147	$	93,515		—	$	6,856,667	$	83,504	$	6,757,324	$	15,839