In February 2011, the FDIC issued a final rule that, among other things, modified the definition of an institution's deposit insurance assessment base and revised assessment rate schedules. These changes, which became effective April 1, 2011, resulted in a reduction in the Company's FDIC insurance premiums.
Variations in net OREO expense between periods were primarily due to fluctuations in write-downs of the estimated fair value of OREO properties. First quarter 2012 net OREO expense included $453 thousand of net operating expenses, $578 thousand of fair value write-downs and net losses of $74 thousand on the sale of OREO properties. During the fourth and first quarters of 2011, the Company recorded fair value write-downs of $1.5 million and $1.6 million, respectively.
Estimated collection and settlement costs of $3.0 million related to one borrower were recorded as other expense during the three months ended March 31, 2012.
|(Unaudited; $ in thousands)|
|Three Months Ended|
|March 31,||December 31,||March 31,|
|Allowance for loan losses - beginning of period||$||112,581||$||120,303||$||120,480|
|Allowance for loan losses - end of period||$||115,902||$||112,581||$||124,446|
|March 31,||December 31,||March 31,|
|Period end loans||$||4,158,616||$||4,186,549||$||4,263,764|
|Accruing loans past due 90 days or more||5,017||4,111||4,140|
|Troubled debt restructurings||36,838||37,376||33,344|
|Total non-performing loans||222,765||241,470||249,878|
|Other real estate owned||44,756||37,452||31,995|
|Total non-performing assets||$||267,521||$||278,922||$||281,873|
|Net charge-offs to average loans, annualized||0.76||%||2.01||%||1.04||%|
|Provision for loan losses to average loans, annualized||1.08||%||1.29||%||1.41||%|
|Allowance for loan losses to period end loans||2.79||%||2.69||%||2.92||%|
|Allowance for loan losses to total non-performing loans||52.03||%||46.62||%||49.80||%|
|Non-performing loans to period end loans||5.36||%||5.77||%||5.86||%|
|Non-performing assets to period end loans and other real estate owned||6.36||%||6.60||%||6.56||%|
|Non-performing assets to total assets||3.60||%||3.81||%||3.79||%|
As of March 31, 2012, total non-performing loans included $203 million of real estate loans, of which $87 million were construction loans and $90 million were commercial real estate loans. Non-performing construction loans as of March 31, 2012 were comprised of land acquisition and development loans of $61 million, commercial construction loans of $22 million and residential construction loans of $4 million.
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