PROVISION FOR LOAN LOSSES

The consolidated provision for loan losses was $0.7 million compared to $1.6 million for the quarters ended June 30, 2011 and 2010, respectively.

The following table documents the quarterly provision, allowance for loan losses and net charge offs at Coastal Credit for the second quarter 2009 through the second quarter 2011:

 

Quarter
   

Provision

(in millions)
   

Allowance for Loan Losses as a Percent of Finance Receivables
   

Annualized Net Charge-offs

as a Percent of

Finance Receivables
2 nd 2011 $0.7 6.07% 2.99%
1 st 2011 $1.1 6.59% 4.14%
4 th 2010 $1.3 6.92% 5.40%
3 rd 2010 $1.6 7.19% 5.21%
2 nd 2010 $1.6 7.33% 5.54%
1 st 2010 $1.9 7.42% 6.27%
4 th 2009 $2.3 7.44% 7.40%
3 rd 2009 $2.2 7.27% 7.62%
2 nd 2009 $2.1 7.19% 6.95%
 

This provision for loan losses at Coastal Credit reflects management’s assessment of the reserves necessary for the current credit environment.