Borrowings and DebenturesAt June 30, 2012, we had $448.8 million in borrowings, compared to borrowings of $448.7 million at December 31, 2011. On January 7, 2012, we consummated the redemption of all outstanding debentures and trust preferred securities issued by First Coast Capital Trust II for total consideration of approximately $6.8 million. On June 17, 2012, we redeemed 50% or $20 million of the Trust Preferred Securities in CVB Statutory Trust I. Asset Quality We have separated the discussion of asset quality into two sections: non-covered loans and covered loans. The non-covered loans represent the legacy Citizens Business Bank loans and exclude all loans acquired in the SJB acquisition. The SJB loans are “covered” loans as defined in the loss sharing agreement with the FDIC. These loans were marked to fair value at the acquisition date. Citizens Business Bank Asset Quality (Non-covered loans) The allowance for credit losses decreased to $91.9 million at June 30, 2012 and March 31, 2012 from $94.0 million at December 31, 2011. The decrease was due to net loan charge-offs of $30,000 for the three months ended June 30, 2012 and $2.1 million for the six months ended June 30, 2012. The allowance for credit losses was 2.89%, 2.89% and 2.92% of total non-covered loans and leases outstanding at June 30, 2012, March 31, 2012 and December 31, 2011, respectively. There was zero provision for credit losses for the first half of 2012. Non-performing loans, defined as nonaccrual loans and non-performing TDRs, were $61.9 million at June 30, 2012, or 1.95% of total loans. This compares to non-performing loans of $55.3 million at March 31, 2012 and $62.7 million at December 31, 2011. The $61.9 million in non-performing loans for the second quarter are summarized as follows: $17.9 million in commercial construction, $12.5 million in residential mortgages, $23.1 million in commercial real estate, $4.6 million in commercial and industrial, $3.4 million in dairy & livestock loans, and $392,000 in other loans.