Note 5 - Loans

12 Months Ended

Dec. 31, 2013

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

5.     Loans

Most of the Company’s business activity is predominately with Asian customers located in Southern and Northern California; New York City; Houston and Dallas, Texas; Seattle, Washington; Boston, Massachusetts; Chicago, Illinois; Edison, New Jersey; Nevada; and Hong Kong. The Company has no specific industry concentration, and generally its loans are collateralized with real property or other pledged collateral of the borrowers. Loans are generally expected to be paid off from the operating profits of the borrowers, refinancing by another lender, or through sale by the borrowers of the secured collateral.

The components of loans in the Consolidated Balance Sheets as of December 31, 2013, and December 31, 2012, were as follows:

	As of December 31,
	2013			2012
	(In thousands)
Type of Loans:
Commercial loans	$	2,298,724		$	2,127,107
Real estate construction loans		221,701			180,950
Commercial mortgage loans		4,023,051			3,768,452
Residential mortgage loans		1,355,255			1,146,230
Equity lines		171,277			193,852
Installment and other loans		14,555			12,556
Gross loans		8,084,563			7,429,147
Less:
Allowance for loan losses		(173,889	)		(183,322	)
Unamortized deferred loan fees		(13,487	)		(10,238	)
Total loans and leases, net	$	7,897,187		$	7,235,587

The Company pledged real estate loans of $1.6 billion at December 31, 2013, and $1.6 billion at December 31, 2012, to the Federal Home Loan Bank of San Francisco under its specific pledge program. In addition, the Bank pledged $119.1 million at December 31, 2013, and $211.6 million at December 31, 2012, of its commercial loans to the Federal Reserve Bank’s Discount Window under the Borrower-in-Custody program.

Loans serviced for others as of December 31, 2013, totaled $197.6 million and were comprised of $53.3 million of commercial loans, $13.3 million of commercial real estate loans, $12.0 million of construction loans, and $119.0 million of residential mortgages.

The Company has entered into transactions with its directors, executive officers, or principal holders of its equity securities, or the associates of such persons (“Related Parties”). Such transactions were made in the ordinary course of business on substantially the same terms and conditions, including interest rates and collateral, as those prevailing at the same time for comparable transactions with customers who are not related parties. In management’s opinion, these transactions did not involve more than normal credit risk or present other unfavorable features. All loans to Related Parties were current as of December 31, 2013. In July 2011, the Bank sold a participation in a substandard real estate loan to a Related Party for $24.5 million, which represented 98% of the contractual balance. In March 2012, the Bank sold participations in two substandard real estate loans to the same Related Party for $7.9 million, which represented 92.5% of the contractual balance. An analysis of the activity with respect to loans to Related Parties for the years indicated is as follows:

	December 31,
	2013			2012
	(In thousands)
Balance at beginning of year	$	172,584		$	160,069
Additional loans made		64,063			92,249
Payment received		(109,662	)		(79,734	)
Balance at end of year	$	126,985		$	172,584

At December 31, 2013, recorded investment in impaired loans totaled $200.8 million and was comprised of nonaccrual loans of $83.2 million and accruing TDR’s of $117.6 million. At December 31, 2012, recorded investment in impaired loans totaled $248.6 million and was comprised of nonaccrual loans of $103.9 million and accruing TDR’s of $144.7 million. The average balance of impaired loans was $221.2 million in 2013 and $277.8 million in 2012. We considered all non-accrual loans and troubled debt restructurings ("TDR") to be impaired. Interest recognized on impaired loans totaled $5.6 million in 2013 and $9.3 million in 2012. The Bank recognizes interest income on impaired loans based on its existing method of recognizing interest income on non-accrual loans except accruing TDRs. For impaired loans, the amounts previously charged off represent 23.9% at December 31, 2013, and 23.2% at December 31, 2012, of the contractual balances for impaired loans. The following table presents impaired loans and the related allowance as of the dates indicated:

	Impaired Loans
	As of December 31, 2013						As of December 31, 2012
	Unpaid Principal Balance		Recorded Investment		Allowance		Unpaid Principal Balance		Recorded Investment		Allowance
	(Dollars in thousands)
With no allocated allowance
Commercial loans	$	20,992	$	18,905	$	-	$	29,359	$	18,963	$	-
Real estate construction loans		25,401		15,097		-		9,304		7,277		-
Commercial mortgage loans		105,593		78,930		-		189,871		152,957		-
Residential mortgage and equity lines		4,892		4,892		-		4,303		4,229		-
Subtotal	$	156,878	$	117,824	$	-	$	232,837	$	183,426	$	-
With allocated allowance
Commercial loans	$	22,737	$	13,063	$	2,519	$	7,804	$	4,959	$	1,467
Real estate construction loans		28,475		19,323		3,460		54,718		34,856		8,158
Commercial mortgage loans		39,223		35,613		6,584		14,163		12,928		1,336
Residential mortgage and equity lines		16,535		14,957		721		14,264		12,428		1,222
Subtotal	$	106,970	$	82,956	$	13,284	$	90,949	$	65,171	$	12,183
Total impaired loans	$	263,848	$	200,780	$	13,284	$	323,786	$	248,597	$	12,183

The following table presents the average balance and interest income recognized related to impaired loans for the periods indicated:

	For the year ended December 31,
	2013		2012		2011		2013		2012		2011
	Average Recorded Investment						Interest Income Recognized
	(In thousands)
Commercial loans	$	27,123	$	31,798	$	48,349	$	770	$	580	$	1,053
Real estate construction loans		37,875		49,094		82,529		284		265		940
Commercial mortgage loans		138,121		178,822		212,555		4,256		8,221		3,101
Residential mortgage and equity lines		18,033		18,062		17,920		289		239		236
Subtotal	$	221,152	$	277,776	$	361,353	$	5,599	$	9,305	$	5,330

The following is a summary of non-accrual loans as of December 31, 2013, 2012, and 2011 and the related net interest foregone for the years then ended:

	2013		2012		2011
	(In thousands)
Non-accrual portfolio loans	$	83,183	$	103,902	$	201,197
Non-accrual loans held-for-sale		-		-		760
Total non-accrual loans	$	83,183	$	103,902	$	201,957
Contractual interest due	$	5,851	$	6,621	$	13,049
Interest recognized		22		1,006		71
Net interest foregone	$	5,829	$	5,615	$	12,978

The following tables present the aging of the loan portfolio by type as of December 31, 2013, and December 31, 2012:

	As of December 31, 2013
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Non-accrual Loans		Total Past Due		Loans Not Past Due		Total
	(In thousands)
Type of Loans:
Commercial loans	$	7,170	$	16,562	$	-	$	21,232	$	44,964	$	2,253,760	$	2,298,724
Real estate construction loans		-		-		-		28,586		28,586		193,115		221,701
Commercial mortgage loans		20,043		7,862		982		19,621		48,508		3,974,543		4,023,051
Residential mortgage loans		3,508		832		-		13,744		18,084		1,508,448		1,526,532
Installment and other loans		100		-		-		-		100		14,455		14,555
Total loans	$	30,821	$	25,256	$	982	$	83,183	$	140,242	$	7,944,321	$	8,084,563

	As of December 31, 2012
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Non-accrual Loans		Total Past Due		Loans Not Past Due		Total
	(In thousands)
Type of Loans:
Commercial loans	$	16,832	$	1,610	$	630	$	19,958	$	39,030	$	2,088,077	$	2,127,107
Real estate construction loans		-		1,471		-		36,299		37,770		143,180		180,950
Commercial mortgage loans		21,570		3,627		-		35,704		60,901		3,707,551		3,768,452
Residential mortgage loans		5,324		1,972		-		11,941		19,237		1,320,845		1,340,082
Installment and other loans		-		-		-		-		-		12,556		12,556
Total loans	$	43,726	$	8,680	$	630	$	103,902	$	156,938	$	7,272,209	$	7,429,147

The determination of the amount of the allowance for credit losses for problem loans is based on management’s current judgment about the credit quality of the loan portfolio and takes into consideration known relevant internal and external factors that affect collectibility when determining the appropriate level for the allowance for credit losses. The nature of the process by which the Bank determines the appropriate allowance for credit losses requires the exercise of considerable judgment. This allowance evaluation process is also applied to TDRs since TDRs are considered to be impaired loans. As a result of adopting the amendments in ASU 2012-02, the Company reassessed all restructurings that occurred on or after January 1, 2011, for identification as TDRs.

At December 31, 2013, accruing TDRs were $117.6 million and non-accrual TDRs were $38.8 million compared to accruing TDRs of $144.7 million and non-accrual TDRs of $47.7 million at December 31, 2012. The Company has allocated specific reserves of $6.9 million to accruing TDRs and $2.2 million to non-accrual TDRs at December 31, 2013, and $1.1 million to accruing TDRs and $7.8 million to non-accrual TDRs at December 31, 2012. The following table presents TDRs that were modified during 2013, their specific reserve at December 31, 2013, and charge-offs during 2013:

	No. of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Specific Reserve		Charge-offs
	(Dollars in thousands)
Commercial loans		9	$	12,026	$	10,860	$	550	$	1,166
Commercial mortgage loans		5		13,090		13,090		329		-
Residential mortgage and equity lines		11		3,736		3,658		103		78
Total		25	$	28,852	$	27,608	$	982	$	1,244

The following table presents TDRs that were modified during 2012, their specific reserve at December 31, 2012, and charge-offs during 2012:

	No. of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Specific Reserve		Charge-offs
	(Dollars in thousands)
Commercial loans		9	$	3,646	$	3,646	$	1,213	$	-
Commercial mortgage loans		20		62,118		58,393		27		3,725
Residential mortgage and equity lines		14		4,305		4,223		162		82
Total		43	$	70,069	$	66,262	$	1,402	$	3,807

The following table presents TDRs that were modified during 2011, their specific reserve at December 31, 2011, and charge-offs during 2011:

	No. of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Specific Reserve		Charge-off
	(Dollars in thousands)
Commercial loans		7	$	15,025	$	15,025	$	104	$	-
Real estate construction loans		3		33,669		21,522		-		12,147
Commercial mortgage loans		6		17,343		14,294		1		3,049
Residential mortgage and equity lines		3		1,574		1,574		114		-
Total		19	$	67,611	$	52,415	$	219	$	15,196

A summary of TDRs by type of concession and by type of loans as of December 31, 2013, December 31, 2012, and December 31, 2011, are shown below:

	As of December 31, 2013
Accruing TDRs	Principal Deferral		Rate Reduction		Rate Reduction and Forgiveness of Principal		Rate Reduction and Payment Deferral		Total
	(In thousands)
Commercial loans	$	9,112	$	2,916	$	-	$	2,708	$	14,736
Real estate construction loans		-		-		-		5,834		5,834
Commercial mortgage loans		11,333		9,389		-		70,200		90,922
Residential mortgage loans		1,564		1,024		-		3,517		6,105
Total accruing TDRs	$	22,009	$	13,329	$	-	$	82,259	$	117,597

	As of December 31, 2013
Non-accrual TDRs	Interest Deferral		Principal Deferral		Rate Reduction		Rate Reduction and Forgiveness of Principal		Rate Reduction and Payment Deferral		Total
	(In thousands)
Commercial loans	$	-	$	2,866	$	-	$	1,352	$	-	$	4,218
Real estate construction loans		-		16,009		-		-		9,263		25,272
Commercial mortgage loans		1,443		2,168		-		-		1,843		5,454
Residential mortgage loans		241		2,206		-		-		1,378		3,825
Total non-accrual TDRs	$	1,684	$	23,249	$	-	$	1,352	$	12,484	$	38,769

	As of December 31, 2012
Accruing TDRs	Principal Deferral		Rate Reduction		Rate Reduction and Forgiveness of Principal		Rate Reduction and Payment Deferral		Total
	(In thousands)
Commercial loans	$	531	$	3,020	$	-	$	413	$	3,964
Real estate construction loans		-		-		-		5,834		5,834
Commercial mortgage loans		27,003		16,656		739		85,783		130,181
Residential mortgage loans		1,461		1,024		-		2,231		4,716
Total accruing TDRs	$	28,995	$	20,700	$	739	$	94,261	$	144,695

	As of December 31, 2012
Non-accrual TDRs	Interest Deferral		Principal Deferral		Rate Reduction		Rate Reduction and Forgiveness of Principal		Rate Reduction and Payment Deferral		Total
	(In thousands)
Commercial loans	$	-	$	912	$	-	$	1,518	$	-	$	2,430
Real estate construction loans		-		16,767		9,579		-		-		26,346
Commercial mortgage loans		1,685		2,817		5,746		-		5,076		15,324
Residential mortgage loans		275		2,010		586		-		760		3,631
Total non-accrual TDRs	$	1,960	$	22,506	$	15,911	$	1,518	$	5,836	$	47,731

	As of December 31, 2011
Accruing TDRs	Principal Deferral		Rate Reduction		Rate Reduction and Forgiveness of Principal		Rate Reduction and Payment Deferral		Total
Commercial loans	$	12,933	$	1,756	$	-	$	431	$	15,120
Real estate construction loans		16,820		9,659		-		5,776		32,255
Commercial mortgage loans		471		37,796		2,071		28,935		69,273
Residential mortgage loans		1,294		587		-		1,487		3,368
Total accruing TDRs	$	31,518	$	49,798	$	2,071	$	36,629	$	120,016

	As of December 31, 2011
Non-accrual TDRs	Interest Deferral		Principal Deferral		Rate Reduction		Rate Reduction and Forgiveness of Principal		Rate Reduction and Payment Deferral		Total
Commercial loans	$	-	$	616	$	1,859	$	1,506	$	-	$	3,981
Real estate construction loans		-		13,579		12,376		-		-		25,955
Commercial mortgage loans		-		9,727		-		-		5,076		17,436
Residential mortgage loans		-		2,427		449		-		311		3,498
Total non-accrual TDRs	$	-	$	26,349	$	14,684	$	1,506	$	5,387	$	50,870

Troubled debt restructurings on accrual status totaled $117.6 million at December 31, 2013, and were comprised of 64 loans, a decrease of $27.1 million, compared to 61 loans totaling $144.7 million at December 31, 2012. TDRs at December 31, 2013, were comprised of 13 retail shopping and commercial use building loans of $44.2 million, ten office and commercial use building loans of $28.6 million, four hotel loans of $17.2 million, 25 single family residential loans of $20.0 million, two warehouses of $1.6 million, five commercial loans of $5.3 million, and five multi-family residential loans of $748,000. We expect that the troubled debt restructuring loans on accruing status as of December 31, 2013, which are all performing in accordance with their restructured terms, will continue to comply with the restructured terms because of the reduced principal or interest payments on these loans. The comparable TDRs at December 31, 2012, were comprised of 16 retail shopping and commercial use building loans of $68.1 million, 15 office and commercial use building loans of $40.4 million, two hotel loans of $12.4 million, 17 single family residential loans of $19.1 million, two land loans of $2.3 million, six commercial loans of $1.3 million, and three multi-family residential loans of $1.1 million. The activity within our TDR loans for 2013, 2012, and 2011 are shown below:

Accruing TDRs	2013			2012			2011
	(In thousands)
Beginning balance	$	144,695		$	120,016		$	136,800
New restructurings		21,382			53,958			60,863
Restructured loans restored to accrual status		6,851			8,356			709
Charge-offs		(78	)		(251	)		(2,341	)
Payments		(52,362	)		(5,159	)		(46,313	)
Restructured loans placed on non-accrual		(2,891	)		(32,225	)		(28,969	)
Expiration of loan concession		-			-			(733	)
Ending balance	$	117,597		$	144,695		$	120,016

Non-accrual TDRs	2013			2012			2011
	(In thousands)
Beginning balance	$	47,731		$	50,870		$	28,146
New restructurings		6,226			12,304			13,269
Restructured loans placed on non-accrual		2,891			32,225			28,969
Charge-offs		(2,124	)		(4,182	)		(7,303	)
Payments		(4,295	)		(33,931	)		(3,355	)
Foreclosures		(4,809	)		(1,199	)		(8,147	)
Restructured loans restored to accrual status		(6,851	)		(8,356	)		(709	)
Ending balance	$	38,769		$	47,731		$	50,870

A loan is considered to be in payment default once it is 60 to 90 days contractually past due under the modified terms.  There were no loans modified as TDRs during the previous twelve months that subsequently defaulted as of December 31, 2013. 

Under the Company’s internal underwriting policy, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification in order to determine whether a borrower is experiencing financial difficulty. As of December 31, 2013, there were no commitments to lend additional funds to those borrowers whose loans have been restructured, were considered impaired, or were on non-accrual status.

As part of the on-going monitoring of the credit quality of our loan portfolio, the Company utilizes a risk grading matrix to assign a risk grade to each loan. Loans are risk rated based on analysis of the current state of the borrower’s credit quality. The analysis of credit quality includes a review of all sources of repayment, the borrower’s current financial and liquidity status and all other relevant information. The risk rating categories can be generally described by the following grouping for non-homogeneous loans:

● Pass/Watch – These loans range from minimal credit risk to lower than average, but still acceptable, credit risk.

● Special Mention – Borrower is fundamentally sound and the loan is currently protected but adverse trends are apparent that, if not corrected, may affect ability to repay. Primary source of loan repayment remains viable but there is increasing reliance on collateral or guarantor support.

● Substandard – These loans are inadequately protected by current sound worth, paying capacity or pledged collateral. Well-defined weaknesses exist that could jeopardize repayment of debt. Loss may not be imminent, but if weaknesses are not corrected, there is a good possibility of some loss.

● Doubtful – The possibility of loss is extremely high, but due to identifiable and important pending events (which may strengthen the loan) a loss classification is deferred until the situation is better defined.

● Loss – These loans are considered uncollectible and of such little value that to continue to carry the loans as an active asset is no longer warranted.

The following tables present loan portfolio by risk rating as of December 31, 2013, and as of December 31, 2012:

	As of December 31, 2013
	Pass/Watch		Special Mention		Substandard		Doubtful		Total
	(in thousands)
Commercial loans	$	2,108,191	$	84,786	$	102,088	$	3,659	$	2,298,724
Real estate construction loans		184,449		-		33,939		3,313		221,701
Commercial mortgage loans		3,686,788		127,436		208,827		-		4,023,051
Residential mortgage and equity lines		1,510,647		-		15,885		-		1,526,532
Installment and other loans		14,555		-		-		-		14,555
Total gross loans	$	7,504,630	$	212,222	$	360,739	$	6,972	$	8,084,563

	As of December 31, 2012
	Pass/Watch		Special Mention		Substandard		Doubtful		Total
	(in thousands)
Commercial loans	$	1,944,989	$	76,776	$	94,077	$	11,265	$	2,127,107
Real estate construction loans		109,269		18,000		45,171		8,510		180,950
Commercial mortgage loans		3,344,783		162,455		261,214		-		3,768,452
Residential mortgage and equity lines		1,322,768		816		16,084		414		1,340,082
Installment and other loans		12,556		-		-		-		12,556
Total gross loans	$	6,734,365	$	258,047	$	416,546	$	20,189	$	7,429,147

The allowance for loan losses and the reserve for off-balance sheet credit commitments are significant estimates that can and do change based on management’s process in analyzing the loan portfolio and on management’s assumptions about specific borrowers, underlying collateral, and applicable economic and environmental conditions, among other factors.

The following table presents the balance in the allowance for loan losses by portfolio segment and based on impairment method as of December 31, 2013, December 31, 2012, and December 31, 2011.

	Commercial Loans		Real Estate Construction Loans		Commercial Mortgage Loans		Residential Mortgage and Equity Lines		Consumer and Other		Total
	(In thousands)
December 31, 2013
Loans individually evaluated for impairment
Allowance	$	2,519	$	3,460	$	6,584	$	721	$	-	$	13,284
Balance	$	31,968	$	34,420	$	114,544	$	19,848	$	-	$	200,780
Loans collectively evaluated for impairment
Allowance	$	62,584	$	8,539	$	78,169	$	11,284	$	29	$	160,605
Balance	$	2,266,756	$	187,281	$	3,908,507	$	1,506,684	$	14,555	$	7,883,783
Total allowance	$	65,103	$	11,999	$	84,753	$	12,005	$	29	$	173,889
Total balance	$	2,298,724	$	221,701	$	4,023,051	$	1,526,532	$	14,555	$	8,084,563
December 31, 2012
Loans individually evaluated for impairment
Allowance	$	1,467	$	8,158	$	1,336	$	1,222	$	-	$	12,183
Balance	$	23,922	$	42,133	$	165,885	$	16,657	$	-	$	248,597
Loans collectively evaluated for impairment
Allowance	$	64,634	$	14,859	$	81,137	$	10,481	$	28	$	171,139
Balance	$	2,103,185	$	138,817	$	3,602,567	$	1,323,425	$	12,556	$	7,180,550
Total allowance	$	66,101	$	23,017	$	82,473	$	11,703	$	28	$	183,322
Total balance	$	2,127,107	$	180,950	$	3,768,452	$	1,340,082	$	12,556	$	7,429,147
December 31, 2011
Loans individually evaluated for impairment
Allowance	$	3,336	$	-	$	2,969	$	1,247	$	-	$	7,552
Balance	$	45,781	$	78,766	$	177,058	$	20,368	$	-	$	321,973
Loans collectively evaluated for impairment
Allowance	$	62,322	$	21,749	$	105,052	$	9,548	$	57	$	198,728
Balance	$	1,822,494	$	158,606	$	3,571,839	$	1,166,601	$	17,699	$	6,737,239
Total allowance	$	65,658	$	21,749	$	108,021	$	10,795	$	57	$	206,280
Total balance	$	1,868,275	$	237,372	$	3,748,897	$	1,186,969	$	17,699	$	7,059,212

The following table details activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2013, 2012, and 2011. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

	Commercial Loans			Real Estate Construction Loans			Commercial Mortgage Loans			Residential Mortgage and Equity Lines			Installment and Other Loans			Total
	(In thousands)
2011 Beginning Balance	$	63,918		$	43,262		$	128,348		$	9,668		$	35		$	245,231
Provision for possible loan losses		11,711			11,514			1,454			2,392			197			27,268
Charge-offs		(11,745	)		(37,500	)		(26,750	)		(1,456	)		(175	)		(77,626	)
Recoveries		1,774			4,473			4,969			191			-			11,407
Net Charge-offs		(9,971	)		(33,027	)		(21,781	)		(1,265	)		(175	)		(66,219	)
2011 Ending Balance	$	65,658		$	21,749		$	108,021		$	10,795		$	57		$	206,280
Reserve to impaired loans	$	3,336		$	-		$	2,969		$	1,247		$	-		$	7,552
Reserve to non-impaired loans	$	62,322		$	21,749		$	105,052		$	9,548		$	57		$	198,728
Reserve for off-balance sheet credit commitments	$	816		$	1,103		$	113		$	34		$	3		$	2,069
2012 Beginning Balance	$	65,658		$	21,749		$	108,021		$	10,795		$	57		$	206,280
Provision/(reversal) for possible loan losses		16,201			(3,720	)		(23,128	)		2,360			(7	)		(8,294	)
Charge-offs		(17,707	)		(1,165	)		(11,762	)		(2,132	)		(25	)		(32,791	)
Recoveries		1,949			6,153			9,342			680			3			18,127
Net Charge-offs		(15,758	)		4,988			(2,420	)		(1,452	)		(22	)		(14,664	)
2012 Ending Balance	$	66,101		$	23,017		$	82,473		$	11,703		$	28		$	183,322
Reserve to impaired loans	$	1,467		$	8,158		$	1,336		$	1,222		$	-		$	12,183
Reserve to non-impaired loans	$	64,634		$	14,859		$	81,137		$	10,481		$	28		$	171,139
Reserve for off-balance sheet credit commitments	$	837		$	390		$	98		$	34		$	3		$	1,362
2013 Beginning Balance	$	66,101		$	23,017		$	82,473		$	11,703		$	28		$	183,322
Provision/(reversal) for possible loan losses		11,888			(13,302	)		(2,500	)		924			(10	)		(3,000	)
Charge-offs		(15,625	)		-			(3,945	)		(872	)		-			(20,442	)
Recoveries		2,739			2,284			8,725			250			11			14,009
Net Charge-offs		(12,886	)		2,284			4,780			(622	)		11			(6,433	)
2013 Ending Balance	$	65,103		$	11,999		$	84,753		$	12,005		$	29		$	173,889
Reserve to impaired loans	$	2,519		$	3,460		$	6,584		$	721		$	-		$	13,284
Reserve to non-impaired loans	$	62,584		$	8,539		$	78,169		$	11,284		$	29		$	160,605
Reserve for off-balance sheet credit commitments	$	909		$	304		$	111		$	34		$	1		$	1,359

An analysis of the activity in the allowance for credit losses for the years ended December 31, 2013, 2012, and 2011 is as follows:

	December 31,
	2013			2012			2011
	(In thousands)
Allowance for Loan Losses
Balance at beginning of year	$	183,322		$	206,280		$	245,231
(Reversal)/provision for credit losses		(3,000	)		(9,000	)		27,000
Transfers from reserve for off-balance sheet credit commitments		-			706			268
Loans charged off		(20,442	)		(32,791	)		(77,626	)
Recoveries of charged off loans		14,009			18,127			11,407
Balance at end of year	$	173,889		$	183,322		$	206,280
Reserve for Off-balance Sheet Credit Commitments
Balance at beginning of year	$	1,363		$	2,069		$	2,337
Provision for credit losses/transfers		-			(706	)		(268	)
Balance at end of year	$	1,363		$	1,363		$	2,069