The credit provision in the second quarter was $628,000, compared to $351,000 in the first quarter and $3.6 million in the second quarter of 2011. The credit provision for the second quarter included net charge-offs of $3.8 million and a $3.2 million decrease to the allowance.
The credit provision for the first quarter included net charge-offs of $3.4 million and a $3 million decrease to the allowance. Our allowance for loan and lease losses at the end of the second quarter was $132.4 million or 2.3% of outstanding loan and leases.
Non-performing assets were $41.5 million at the end of the second quarter and represented 0.73% of loans. Included in non-performing loans are $26.8 million in the residential mortgage loans as of June 30.
Non-interest income for the second quarter was $46.8 million compared to $48.1 million in the first quarter, and $49.5 million in the second quarter of 2011. The decrease to the first quarter was primarily due to a $3.5 million gain from the sale of our equity interest and two leverage leases, partially offset by a $1 million loss on a direct financing lease in the first quarter. The decrease compared to the second quarter of 2011 was primarily due to $4 million lower debit interchange revenue as a result of the Durbin amendment.Mortgage banking results were strong in the quarter, producing $7.6 million of income versus $5.1 million in the first quarter. Year to date non-interest income was $94.9 million compared to $103.4 million in 2011. The decrease was primarily due to lower debit interchange revenue and $6.1 million in securities gains in 2011, partially offset by higher mortgage banking income. Non-interest expense totaled $80.7 million in the second quarter, compared to $85.2 million in the first quarter and $93.8 million in the second quarter of 2011. The increase compared to the first quarter was due to lower salaries and benefits expense and $1.2 million for our personal computer refresh program in the first quarter. The decrease compared to the second quarter of 2011 was primarily due to the $9 million legal settlement related to overdraft plaints in 2011 and lower salaries and benefits. Year to date non-interest expense was $166 million compared to $179.9 million in 2011. Read the rest of this transcript for free on seekingalpha.com
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