As of September 30, 2010, the Company's allowance for loan losses amounted to $32 million or 2.9% of period-end loans outstanding. The allowance as a percentage of loans outstanding was 2.7% at September 30, 2009 and 2.8% at June 30, 2010.
The Company recorded net loan charge-offs of $1.3 million in the third quarter of 2010 versus net charge-offs of $1.6 million in the third quarter of 2009 and net recoveries of $279 thousand in the second quarter of 2010. As a percentage of average total loans outstanding, these net amounts represented, on an annualized basis, 0.5% for the third quarter of 2010, 0.6% for the third quarter of 2009 and (0.1)% for the second quarter of 2010.
The Company has held no other real estate owned since 2005.
CapitalTotal stockholders' equity was $154 million at September 30, 2010 compared to $152 million at September 30, 2009 and $153 million at June 30, 2010. The increase in stockholders' equity versus September 30, 2009 is largely reflective of net income earned in the nine months ended September 30, 2010 and the equity recorded as a result of the December 2009 exchange of the Company's $10 million 8.25% subordinated notes for an aggregate of 1,656,600 shares of common stock valued at $6.50 each, partially offset by the net loss recorded in the fourth quarter of 2009. The Company's return on average common stockholders' equity was 7.31% for the first nine months of 2010 versus (4.26%) in the September 2009 year-to-date period. The Company has $20 million in outstanding trust preferred securities that qualify as Tier I capital. During 2010, the weighted average cost of the Company's trust preferred securities was 3.54% versus 4.32% a year ago. The Bank's Tier I leverage, Tier I risk-weighted and total risk-weighted capital ratios were 9.23%, 11.89% and 13.16%, respectively, at September 30, 2010. Each of these ratios exceeds the regulatory guidelines for a "well capitalized" institution, the highest regulatory capital category.