NOTE 3 – ALLOWANCE FOR CREDIT LOSSES

The following tables summarize the changes in the allowance for credit losses by segment and class for the periods indicated:

	Three months ended
	March 31, 2013
	Balance,										Balance,
	Beginning of										End of
	Period		Charge-offs			Recoveries		Provision			Period
	(In thousands)
Commercial and industrial	$	23,286	$	(1,938	)	$	589	$	1,118		$	23,055
Real estate
Consumer mortgage		35,966		(1,614	)		1,108		198			35,658
Home equity		6,005		(602	)		260		421			6,084
Agricultural		3,301		(2	)		13		408			3,720
Commercial and industrial-owner occupied		20,178		(300	)		254		251			20,383
Construction, acquisition and development		21,905		(1,198	)		886		2,189			23,782
Commercial real estate		40,081		(3,141	)		339		(1,304	)		35,975
Credit cards		3,611		(450	)		148		90			3,399
All other		10,133		(492	)		275		629			10,545
Total	$	164,466	$	(9,737	)	$	3,872	$	4,000		$	162,601

	Year ended
	December 31, 2012
	Balance,										Balance,
	Beginning of										End of
	Period		Charge-offs			Recoveries		Provision			Period
	(In thousands)
Commercial and industrial	$	20,724	$	(12,362	)	$	7,096	$	7,828		$	23,286
Real estate
Consumer mortgage		36,529		(13,122	)		1,836		10,723			35,966
Home equity		8,630		(2,721	)		496		(400	)		6,005
Agricultural		3,921		(1,240	)		126		494			3,301
Commercial and industrial-owner occupied		21,929		(9,015	)		2,696		4,568			20,178
Construction, acquisition and development		45,562		(33,085	)		8,407		1,021			21,905
Commercial real estate		39,444		(12,728	)		8,538		4,827			40,081
Credit cards		4,021		(2,221	)		527		1,284			3,611
All other		14,358		(2,904	)		1,024		(2,345	)		10,133
Total	$	195,118	$	(89,398	)	$	30,746	$	28,000		$	164,466

	Three months ended
	March 31, 2012
	Balance,										Balance,
	Beginning of										End of
	Period		Charge-offs			Recoveries		Provision			Period
	(In thousands)
Commercial and industrial	$	20,724	$	(4,272	)	$	1,542	$	2,988		$	20,982
Real estate
Consumer mortgage		36,529		(4,216	)		323		3,912			36,548
Home equity		8,630		(851	)		315		134			8,228
Agricultural		3,921		(96	)		10		(449	)		3,386
Commercial and industrial-owner occupied		21,929		(3,868	)		351		2,230			20,642
Construction, acquisition and development		45,562		(11,394	)		2,155		(862	)		35,461
Commercial real estate		39,444		(2,809	)		383		2,364			39,382
Credit cards		4,021		(562	)		118		(436	)		3,141
All other		14,358		(758	)		288		119			14,007
Total	$	195,118	$	(28,826	)	$	5,485	$	10,000		$	181,777

The following tables provide the allowance for credit losses by segment, class and impairment status as of the dates indicated:

	March 31, 2013
	Recorded		Allowance for		Allowance for
	Balance of		Impaired Loans		All Other Loans		Total
	Impaired Loans		and Leases		and Leases		Allowance
	(In thousands)
Commercial and industrial	$	3,459	$	763	$	22,292	$	23,055
Real estate
Consumer mortgage		16,480		1,962		33,696		35,658
Home equity		2,037		32		6,052		6,084
Agricultural		4,844		215		3,505		3,720
Commercial and industrial-owner occupied		14,218		1,361		19,022		20,383
Construction, acquisition and development		45,816		5,864		17,918		23,782
Commercial real estate		49,703		1,461		34,514		35,975
Credit cards		-		-		3,399		3,399
All other		1,234		-		10,545		10,545
Total	$	137,791	$	11,658	$	150,943	$	162,601

	December 31, 2012
	Recorded		Allowance for		Allowance for
	Balance of		Impaired Loans		All Other Loans		Total
	Impaired Loans		and Leases		and Leases		Allowance
	(In thousands)
Commercial and industrial	$	4,845	$	1,241	$	22,045	$	23,286
Real estate
Consumer mortgage		15,107		1,103		34,863		35,966
Home equity		1,380		111		5,894		6,005
Agricultural		5,382		92		3,209		3,301
Commercial and industrial-owner occupied		16,720		864		19,314		20,178
Construction, acquisition and development		61,335		4,350		17,555		21,905
Commercial real estate		50,413		2,720		37,361		40,081
Credit cards		-		-		3,611		3,611
All other		1,546		60		10,073		10,133
Total	$	156,728	$	10,541	$	153,925	$	164,466

Management evaluates impaired loans individually in determining the adequacy of the allowance for impaired loans. As a result of the Company individually evaluating loans of $500,000 or more that are 60 or more days past due for impairment, further review of remaining loans collectively, as well as the corresponding potential allowance would be immaterial in the opinion of management.