(2) Accruing restructured loans consists primarily of residential real estate and home equity loans that have been modified and are performing in accordance with those modified terms as of the dates indicated.

The following table represents a summary of OREO, excluding OREO related to assets acquired in FDIC-assisted transactions (in thousands):
  June 30,   March 31,   December 31,   September 30,   June 30,
2012   2012   2011   2011   2011  
 
Balance at the beginning of quarter $ 63,077 $ 78,452 $ 87,469 $ 88,185 $ 80,107
Transfers in at fair value less estimated costs to sell 1,877 2,110 4,209 15,658 15,761
Fair value adjustments (4,507 ) (4,764 ) (3,733 ) (2,524 ) (3,417 )
Net gains (losses) on sales of OREO 351 416 113 170 (212 )
Cash received upon disposition (11,108 ) (13,137 ) (9,606 ) (14,020 ) (4,054 )
Balance at the end of quarter $ 49,690   $ 63,077   $ 78,452   $ 87,469   $ 88,185  
 

The following table presents data related to non-performing loans, by dollar amount and category at June 30, 2012, excluding loans held for sale and credit-impaired loans that were acquired as part of our FDIC-assisted transactions (dollar amounts in thousands):
                     
    Commercial and Lease Loans   Construction Real Estate Loans   Commercial Real Estate Loans   Consumer Loans   Total Loans
  Number of     Number of     Number of      
    Relationships     Amount   Relationships     Amount   Relationships     Amount     Amount     Amount
$10.0 million or more - $ - - $ - - $ - $ - $ -
$5.0 million to $9.9 million 1 6,182 - - 1 5,431 - 11,613
$1.5 million to $4.9 million 5 10,984 - - 11 30,324 - 41,308
Under $1.5 million 34     7,236     4     1,470     77     26,757       25,146       60,609  
40   $ 24,402     4   $ 1,470     89   $ 62,512     $ 25,146     $ 113,530  
 
Percentage of individual loan category 1.06 % 0.98 % 3.48 % 2.72 % 1.98 %
 

The following table presents data related to non-performing loans, by dollar amount and category at March 31, 2012, excluding loans held for sale and credit-impaired loans that were acquired as part of our FDIC-assisted transactions (dollar amounts in thousands):
                         
    Commercial and Lease Loans   Construction Real Estate Loans   Commercial Real Estate Loans     Consumer Loans     Total Loans
  Number of     Number of     Number of      
    Relationships     Amount   Relationships     Amount   Relationships     Amount     Amount     Amount
$10.0 million or more - $ - - $ - - $ - $ - $ -
$5.0 million to $9.9 million 3 21,476 - - 1 5,431 - 26,907
$1.5 million to $4.9 million 2 3,577 - - 15 40,603 1,603 45,783
Under $1.5 million 43     9,418     4     1,553     68     24,905       16,124       52,000  
48   $ 34,471     4   $ 1,553     84   $ 70,939     $ 17,727     $ 124,690  
 
Percentage of individual loan category 1.53 % 1.21 % 3.78 % 1.94 % 2.15 %
 

We define potential problem loans as performing loans rated substandard that do not meet the definition of a non-performing loan (See “Asset Quality” section above for non-performing loans). Potential problem loans carry a higher probability of default and require additional attention by management. The aggregate principal amount of potential problem loans was $141.0 million, or 2.46% of total loans, as of June 30, 2012, compared to $159.4 million, or 2.75% of total loans, as of March 31, 2012.

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