ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY INFORMATION (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of Allowance for Loan Losses and Loan Balances

The following table provides the activity of the allowance for loan losses and loan balances for the three and nine months ended September 30, 2012:

	Commercial			Owner Occupied Commercial			Commercial Mortgages			Construction			Residential			Consumer			Complexity Risk (1)			Total
	(In Thousands)
Three months ended September 30, 2012
Allowance for loan losses
Beginning balance	$	9,891		$	4,091		$	9,618		$	5,307		$	6,265		$	10,341		$	916		$	46,429
Charge-offs		(1,281	)		(926	)		(709	)		(676	)		(705	)		(2,573	)		—			(6,870	)
Recoveries		455			184			18			1,314			113			204			—			2,288
Provision		(127	)		(4	)		(2,281	)		(810	)		2,690			4,300			(17	)		3,751
Ending balance	$	8,938		$	3,345		$	6,646		$	5,135		$	8,363		$	12,272		$	899		$	45,598
Nine months ended September 30, 2012
Allowance for loan losses
Beginning balance	$	15,067		$	9,235		$	7,556		$	4,074		$	6,544		$	10,604		$	—		$	53,080
Charge-offs		(11,316	)		(3,614	)		(5,600	)		(10,680	)		(3,344	)		(5,494	)		—			(40,048	)
Recoveries		1,305			190			382			1,642			171			497			—			4,187
Provision		3,882			(2,466	)		4,308			10,099			4,992			6,665			899			28,379
Ending balance	$	8,938		$	3,345		$	6,646		$	5,135		$	8,363		$	12,272		$	899		$	45,598
Period-end allowance allocated to:
Loans individually evaluated for impairment	$	1,244		$	222		$	90		$	94		$	1,199		$	24		$	—		$	2,873
Loans collectively evaluated for impairment		7,694			3,123			6,556			5,041			7,164			12,248			899			42,725
Ending balance	$	8,938		$	3,345		$	6,646		$	5,135		$	8,363		$	12,272		$	899		$	45,598
Period-end loan balances evaluated for:
Loans individually evaluated for impairment	$	3,579		$	13,324		$	5,875		$	2,620		$	18,072		$	6,694		$	—		$	50,164	(2)
Loans collectively evaluated for impairment		694,626			737,670			598,681			111,557			232,270			276,691			—			2,651,595
Ending balance	$	698,205		$	750,994		$	604,556		$	114,177		$	250,342		$	283,485		$	—		$	2,701,759

(1) Represents the portion of the allowance for loan losses established to account for the inherent complexity and uncertainty of estimates.

(2) The difference between this amount and nonaccruing loans at September 30, 2012, represents accruing troubled debt restructured loans.

The following table provides the activity of the allowance for loan losses and loan balances for the three and nine months ended September 30, 2011:

	Commercial			Commercial Mortgages			Construction			Residential			Consumer			Total
	(In Thousands)
Three months ended September 30, 2011
Allowance for loan losses
Beginning balance	$	25,236		$	12,330		$	5,831		$	3,707		$	9,144		$	56,248
Charge-offs		(1,431	)		(5,302	)		(1,107	)		(877	)		(1,248	)		(9,965	)
Recoveries		71			94			51			25			106			347
Provision		1,645			302			926			427			3,258			6,558
Ending balance	$	25,521		$	7,424		$	5,701		$	3,282		$	11,260		$	53,188
Nine months ended September 30, 2011
Allowance for loan losses
Beginning balance	$	26,480		$	10,564		$	10,019		$	4,028		$	9,248		$	60,339
Charge-offs		(7,641	)		(6,609	)		(8,179	)		(2,183	)		(5,472	)		(30,084	)
Recoveries		409			381			557			116			422			1,885
Provision		6,273			3,088			3,304			1,321			7,062			21,048
Ending balance	$	25,521		$	7,424		$	5,701		$	3,282		$	11,260		$	53,188
Period-end allowance allocated to:
Specific reserves(1)	$	1,810		$	1,604		$	3,005		$	808		$	120		$	7,347
General reserves(2)		23,711			5,820			2,696			2,474			11,140			45,841
Ending balance	$	25,521		$	7,424		$	5,701		$	3,282		$	11,260		$	53,188
Period-end loan balances evaluated for:
Specific reserves(1)	$	21,270		$	20,306		$	21,701		$	17,666		$	3,176		$	84,119	(3)
General reserves(2)		1,376,272			583,564			89,803			267,668			293,991			2,611,298
Ending balance	$	1,397,542		$	603,870		$	111,504		$	285,334		$	297,167		$	2,695,417

(1) Specific reserves represent loans individually evaluated for impairment.

(2) General reserves represent loans collectively evaluated for impairment.

(3) The difference between this amount and nonaccruing loans at September 30, 2011, represents accruing troubled debt restructured loans.

Nonaccrual and Past Due Loans

The following tables show our nonaccrual and past due loans at the dates indicated:

September 30, 2012 (In Thousands)	30–59 Days Past Due and Still Accruing			60–89 Days Past Due and Still Accruing			Greater Than 90 Days Past Due and Still Accruing			Total Past Due And Still Accruing			Accruing Current Balances			Nonaccrual Loans			Total Loans
Commercial	$	332		$	—		$	1,869		$	2,201		$	692,425		$	3,579		$	698,205
Owner occupied commercial (1)		—			—			—			—			737,670			13,324			750,994
Commercial mortgages		—			80			—			80			598,601			5,875			604,556
Construction		—			—			—			—			111,557			2,620			114,177
Residential		5,272			1,218			—			6,490			234,498			9,354			250,342
Consumer		1,788			147			—			1,935			276,362			5,188			283,485
Total	$	7,392		$	1,445		$	1,869		$	10,706		$	2,651,113		$	39,940		$	2,701,759
% of Total Loans		0.28	%		0.05	%		0.07	%		0.40	%		98.12	%		1.48	%		100	%

December 31, 2011 (In Thousands)	30–59 Days Past Due and Still Accruing			60–89 Days Past Due and Still Accruing			Greater Than 90 Days Past Due and Still Accruing			Total Past Due And Still Accruing			Accruing Current Balances			Nonaccrual Loans			Total Loans
Commercial	$	1,087		$	63		$	78		$	1,228		$	1,435,876		$	23,080		$	1,460,184
Commercial mortgages		479			243			—			722			605,764			15,814			622,300
Construction		3,727			—			—			3,727			80,074			22,124			105,925
Residential		5,501			1,238			887			7,626			258,820			9,057			275,503
Consumer		2,783			709			—			3,492			287,247			1,018			291,757
Total	$	13,577		$	2,253		$	965		$	16,795		$	2,667,781		$	71,093		$	2,755,669
% of Total Loans		0.49	%		0.08	%		0.04	%		0.61	%		96.81	%		2.58	%		100	%

(1) Prior to 2012, owner-occupied commercial loans were included in commercial loan balances.

Analysis of Impaired Loans

The following tables provide an analysis of our impaired loans at September 30, 2012 and December 31, 2011:

September 30, 2012 (In Thousands)	Ending Loan Balances		Loans with No Specific Reserve (1)		Loans with Specific Reserve		Related Specific Reserve		Contractual Principal Balances		Average Loan Balances
Commercial	$	3,579	$	1,735	$	1,844	$	1,244	$	10,714	$	8,530
Owner-Occupied Commercial (2)		13,324		12,088		1,236		222		16,293		13,918
Commercial mortgages		5,875		5,243		632		90		9,316		15,394
Construction		2,620		2,121		499		94		19,245		25,446
Residential		18,072		15,126		2,946		1,199		19,919		18,502
Consumer		6,694		5,988		706		24		8,242		4,113
Total	$	50,164	$	42,301	$	7,863	$	2,873	$	83,729	$	85,903

December 31, 2011 (In Thousands)	Ending Loan Balances		Loans with No Specific Reserve (1)		Loans with Specific Reserve		Related Specific Reserve		Contractual Principal Balances		Average Loan Balances
Commercial	$	23,193	$	19,353	$	3,840	$	2,630	$	26,815	$	22,396
Commercial mortgages		15,814		13,602		2,212		295		21,278		16,237
Construction		22,124		14,166		7,958		723		34,862		27,323
Residential		16,227		9,649		6,578		964		19,312		17,480
Consumer		2,621		1,336		1,285		101		2,788		3,916
Total	$	79,979	$	58,106	$	21,873	$	4,713	$	105,055	$	87,352

(1) Reflects loan balances at their remaining book balance.

(2) Prior to 2012, owner-occupied commercial loans were included in commercial loan balances.

Commercial Credit Exposure Credit Risk Profile by Internally Assigned Risk Rating

The following tables provide an analysis of problem loans as of September 30, 2012 and December 31, 2011:

Commercial credit exposure credit risk profile by internally assigned risk rating (in thousands):

	Commercial				Owner-Occupied Commercial (1)				Commercial Mortgages				Construction				Total Commercial
	Sept. 30, 2012		Dec. 31, 2011		Sept. 30, 2012		Dec. 31, 2011		Sept. 30, 2012		Dec. 31, 2011		Sept. 30, 2012		Dec. 31, 2011		September 30, 2012					December 31, 2011
																	Amount		Percent			Amount		Percent
Risk Rating:
Special mention	$	14,758	$	85,848	$	29,413		—	$	30,722	$	50,044	$	429	$	9,747	$	75,322				$	145,639
Substandard:
Accrual		73,204		107,896		54,344		—		13,812		13,664		13,053		19,039		154,413					140,599
Nonaccrual		1,334		23,193		12,088		—		5,243		15,814		2,121		22,124		20,786					61,131
Doubtful/Nonaccrual		2,245		—		1,236		—		632		—		499		—		4,612					—
Total Special Mention, Substandard and Doubtful		91,541		216,937		97,081		—		50,409		79,522		16,102		50,910		255,133		12	%		347,369		16	%
Pass		606,664		1,242,519		653,913		—		554,147		543,277		98,075		55,244		1,912,799		88			1,841,040		84
Total Commercial Loans	$	698,205	$	1,459,456	$	750,994		—	$	604,556	$	622,799	$	114,177	$	106,154	$	2,167,932		100	%	$	2,188,409		100	%

Consumer Credit Exposure Credit Risk Profile Based on Payment Activity

Consumer credit exposure credit risk profile based on payment activity (in thousands):

	Residential				Consumer				Total Residential and Consumer
	Sept. 30, 2012		Dec. 31, 2011		Sept. 30, 2012		Dec. 31, 2011		September 30, 2012					December 31, 2011
									Amount		Percent			Amount		Percent
Nonperforming (2)	$	18,072	$	16,227	$	6,694	$	2,621	$	24,766		5	%	$	18,848		3	%
Performing		232,270		259,276		276,791		289,136		509,061		95			548,412		97
Total	$	250,342	$	275,503	$	283,485	$	291,757	$	533,827		100	%	$	567,260		100	%

Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated

The following table presents loans identified as TDRs during the three and nine months ended September 30, 2012:

(In Thousands)	Three Months Ended Sept. 30, 2012		Nine Months Ended Sept. 30, 2012
Commercial	$	710	$	9,986
Construction		—		378
Residential		2,779		4,170
Consumer		2,165		2,312
Total	$	5,654	$	16,846