Below is a reconciliation of the activity in our allowance for credit and loan losses for the periods indicated (dollar amounts in thousands):

      Three Months Ended   Six Months Ended
June 30,   March 31,   December 31,   September 30,   June 30,   June 30,   June 30,
  2012       2012       2011       2011       2011       2012       2011  
 
Allowance for credit losses, balance at the beginning of period $ 133,255 $ 135,975 $ 141,861 $ 147,107 $ 178,410 $ 135,975 $ 192,217
Provision for credit losses - 3,100 8,000 11,500 61,250 3,100 101,250
Charge-offs:
Commercial loans (1,451 ) (539 ) (2,932 ) (3,497 ) (7,991 ) (1,990 ) (11,142 )
Commercial loans collateralized by
assignment of lease payments (lease loans) (1,720 ) - (1,373 ) - (93 ) (1,720 ) (93 )
Commercial real estate loans (2,415 ) (3,003 ) (3,793 ) (7,815 ) (55,250 ) (5,418 ) (85,025 )
Construction real estate (444 ) (3,436 ) (6,989 ) (6,008 ) (18,826 ) (3,880 ) (39,920 )
Residential real estate (1,108 ) (294 ) (860 ) (141 ) (8,080 ) (1,402 ) (11,642 )
Indirect vehicle (488 ) (715 ) (954 ) (611 ) (553 ) (1,203 ) (1,271 )
Home equity (876 ) (1,072 ) (2,061 ) (1,605 ) (5,493 ) (1,948 ) (7,400 )
Consumer loans (274 ) (258 ) (285 ) (475 ) (344 ) (532 ) (888 )
Total charge-offs (8,776 ) (9,317 ) (19,247 ) (20,152 ) (96,630 ) (18,093 ) (157,381 )
Recoveries:
Commercial loans 386 2,038 634 1,413 758 2,424 3,323
Commercial loans collateralized by
assignment of lease payments (lease loans) 93 256 1 5 153 349 219
Commercial real estate loans 3,061 162 747 739 312 3,223 1,846
Construction real estate 141 565 3,519 681 2,364 706 4,390
Residential real estate 188 34 9 7 26 222 33
Indirect vehicle 300 311 378 327 369 611 694
Home equity 100 20 6 151 19 120 67
Consumer loans 92   111   67   83   76   203   449  
Total recoveries 4,361   3,497   5,361   3,406   4,077   7,858   11,021  
 
Total net charge-offs (4,415 ) (5,820 ) (13,886 ) (16,746 ) (92,553 ) (10,235 ) (146,360 )
 
Allowance for credit losses 128,840 133,255 135,975 141,861 147,107 128,840 147,107
 
Allowance for unfunded credit commitments (7,084 ) (7,824 ) (9,177 ) (13,251 ) (17,050 ) (7,084 ) (17,050 )
 
Allowance for loan losses $ 121,756   $ 125,431   $ 126,798   $ 128,610   $ 130,057   $ 121,756   $ 130,057  
 
Total loans, excluding loans held for sale $ 5,723,249 $ 5,789,765 $ 5,950,995 $ 5,813,737 $ 5,938,029 $ 5,723,249 $ 5,938,029
Average loans, excluding loans held for sale $ 5,712,630 $ 5,802,037 $ 5,818,425 $ 5,827,181 $ 6,293,073 $ 5,757,333 $ 6,376,329
 
Ratio of allowance for loan losses to total loans, excluding loans held for sale 2.13 % 2.17 % 2.13 % 2.21 % 2.19 % 2.13 % 2.19 %
 
Net loan charge-offs to average loans, excluding loans held for sale (annualized) 0.31 % 0.40 % 0.95 % 1.14 % 5.90 % 0.36 % 4.63 %

During the second quarter of 2011, we sold certain performing, sub-performing and non-performing loans. The loans sold had an aggregate carrying amount of $281.6 million prior to the transfer to loans held for sale. This sale resulted in approximately $87.6 million in charge-offs and an increase in the provision for credit losses of approximately $50 million in the second quarter of 2011.

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