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Loans | 6 Months Ended
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Jun. 30, 2011
Loans [Abstract] |
LOANS | NOTE 5 — LOANS The Board of Directors and management review and approve the Bank’s loan policy and procedures on a regular basis to reflect issues such as regulatory and organizational structure change, strategic planning revisions, concentrations of credit, loan delinquencies and non-performing loans, problem loans, and policy adjustments. Real estate loans are subject to loans secured by liens or interest in real estate, to provide purchase, construction, and refinance on real estate properties. Commercial and industrial loans consist of commercial term loans, commercial lines of credit, and SBA loans. Consumer loans consist of auto loans, credit cards, personal loans, and home equity lines of credit. We maintain management loan review and monitoring departments that review and monitor pass graded loans as well as problem loans to prevent further deterioration. Concentrations of Credit: The majority of the Bank’s loan portfolio consists of commercial real estate loans and commercial and industrial loans. The Bank has been diversifying and monitoring commercial real estate loans based on property types, tightening underwriting standards, and portfolio liquidity and management, and has not exceeded certain specified limits set forth in the Bank’s loan policy. Most of the Bank’s lending activity occurs within Southern California. Loans Receivable Loans receivable consisted of the following as of the dates indicated:
|  | June 30, |  |  | December 31, |
|  | 2011 |  |  | 2010 |
|  | (In Thousands) |
Real Estate Loans: |  |  |  |  |  |  |  |
Commercial Property |  | $ | 688,842 |  |  | $ | 729,222 |
Construction |  |  | 40,684 |  |  |  | 60,995 |
Residential Property |  |  | 58,059 |  |  |  | 62,645 |
Total Real Estate Loans |  |  | 787,585 |  |  |  | 852,862 |
Commercial and Industrial Loans: (1) |  |  |  |  |  |  |  |
Commercial Term |  |  | 1,032,274 |  |  |  | 1,118,999 |
SBA |  |  | 105,049 |  |  |  | 105,688 |
Commercial Lines of Credit |  |  | 50,636 |  |  |  | 59,056 |
International |  |  | 46,560 |  |  |  | 44,167 |
Total Commercial and Industrial Loans |  |  | 1,234,519 |  |  |  | 1,327,910 |
Consumer Loans |  |  | 46,500 |  |  |  | 50,300 |
Total Gross Loans |  |  | 2,068,604 |  |  |  | 2,231,072 |
Allowance for Loans Losses |  |  | (109,029 | ) |  |  | (146,059 | )
Deferred Loan Fees |  |  | (11 | ) |  |  | (566 | )
Loans Receivable, Net |  | $ | 1,959,564 |  |  | $ | 2,084,447 |
(1) |  | Commercial and industrial loans include owner-occupied property loans of $846.5 million and $894.8 million as of June 30, 2011 and December 31, 2010, respectively.
Accrued interest on loans receivable amounted to $6.0 million and $6.5 million at June 30, 2011 and December 31, 2010, respectively. At June 30, 2011 and December 31, 2010, loans receivable totaling $904.5 million and $1.03 billion, respectively, was pledged to secure borrowings from the FHLB and the Fed Discount Window. The following table details the information on the purchases, sales and reclassification of loans receivable to loans held for sale by portfolio segment for the three months ended June 30, 2011 and 2010.
|  |  |  |  |  | Commercial |  |  |  |  |  |  |
|  | Real Estate |  |  | and Industrial |  |  | Consumer |  |  | Total |
|  |  |  |  |  | (Dollars in Thousands) |  |  |  |  |
June 30, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans Held for Sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning Balance |  | $ | 3,513 |  |  | $ | 44,136 |  |  | $ | — |  |  | $ | 47,649 |
Origination of Loans Held for Sale |  |  | — |  |  |  | 1,771 |  |  |  | — |  |  |  | 1,771 |
Reclassification from Loans Receivable to Loans Held for sale |  |  | 266 |  |  |  | 9,567 |  |  |  | — |  |  |  | 9,833 |
Sales of Loans Held for sale |  |  | (2,664 | ) |  |  | (11,557 | ) |  |  | — |  |  |  | (14,221 | )
Principal Payoffs and Amortization |  |  | (8 | ) |  |  | (237 | ) |  |  | — |  |  |  | (245 | )
Valuation Adjustments |  |  | (133 | ) |  |  | (549 | ) |  |  | — |  |  |  | (682 | )
Ending Balance |  | $ | 974 |  |  | $ | 43,131 |  |  | $ | — |  |  | $ | 44,105 |
June 30, 2010 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans Held for Sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning Balance |  | $ | — |  |  | $ | 10,104 |  |  | $ | — |  |  | $ | 10,104 |
Origination of Loans Held for Sale |  |  | — |  |  |  | 462 |  |  |  | — |  |  |  | 462 |
Reclassification from Loans Receivable to Loans Held for sale |  |  | 22,584 |  |  |  | 60,500 |  |  |  | — |  |  |  | 83,084 |
Sales of Loans Held for sale |  |  | (7,731 | ) |  |  | (55,257 | ) |  |  | — |  |  |  | (62,988 | )
Principal Payoffs and Amortization |  |  | — |  |  |  | (118 | ) |  |  | — |  |  |  | (118 | )
Valuation Adjustments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Ending Balance |  | $ | 14,853 |  |  | $ | 15,691 |  |  | $ | — |  |  | $ | 30,544 |
For the three months ended June 30, 2011, loans receivable of $9.8 million were reclassified as loans held for sale, and loans held for sale of $14.2 million were sold. For the same period ended June 30, 2010, loans receivable of $83.1 million were reclassified as loans held for sale, and loans held for sale of $63.0 million were sold. The net proceeds from the sale of non-performing loans were $18.0 million and $57.4 million for the three months ended June 30, 2011 and 2010, respectively. There were no purchases of loans receivable for the three months ended June 30, 2011 and 2010. The following table details the information on the purchases, sales and reclassification of loans receivable to loans held for sale by portfolio segment for the six months ended June 30, 2011 and 2010.
|  |  |  |  |  | Commercial |  |  |  |  |  |  |
|  | Real Estate |  |  | and Industrial |  |  | Consumer |  |  | Total |
|  |  |  |  |  | (Dollars in Thousands) |  |  |  |  |
June 30, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans Held for Sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning Balance |  | $ | 3,666 |  |  | $ | 32,954 |  |  | $ | — |  |  | $ | 36,620 |
Origination of Loans Held for Sale |  |  | — |  |  |  | 16,056 |  |  |  | — |  |  |  | 16,056 |
Reclassification from Loans Receivable to Loans Held for sale |  |  | 18,175 |  |  |  | 19,631 |  |  |  | — |  |  |  | 37,806 |
Sales of Loans Held for sale |  |  | (20,653 | ) |  |  | (22,140 | ) |  |  | — |  |  |  | (42,793 | )
Principal Payoffs and Amortization |  |  | (14 | ) |  |  | (667 | ) |  |  | — |  |  |  | (681 | )
Valuation Adjustments |  |  | (200 | ) |  |  | (2,703 | ) |  |  | — |  |  |  | (2,903 | )
Ending Balance |  | $ | 974 |  |  | $ | 43,131 |  |  | $ | — |  |  | $ | 44,105 |
June 30, 2010 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans Held for Sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning Balance |  | $ | — |  |  | $ | 5,010 |  |  | $ | — |  |  | $ | 5,010 |
Origination of Loans Held for Sale |  |  | — |  |  |  | 1,782 |  |  |  | — |  |  |  | 1,782 |
Reclassification from Loans Receivable to Loans Held for sale |  |  | 35,401 |  |  |  | 66,219 |  |  |  | — |  |  |  | 101,620 |
Sales of Loans Held for sale |  |  | (20,548 | ) |  |  | (57,137 | ) |  |  | — |  |  |  | (77,685 | )
Principal Payoffs and Amortization |  |  | — |  |  |  | (183 | ) |  |  | — |  |  |  | (183 | )
Valuation Adjustments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Ending Balance |  | $ | 14,853 |  |  | $ | 15,691 |  |  | $ | — |  |  | $ | 30,544 |
For the six months ended June 30, 2011, loans receivable of $37.8 million were reclassified as loans held for sale, and loans held for sale of $42.8 million were sold. For the same period ended June 30, 2010, loans receivable of $101.6 million were reclassified as loans held for sale and loans held for sale of $77.7 million were sold. The net proceeds from the sale of non-performing loans were $45.9 million and $73.6 million for the six months ended June 30, 2011 and 2010, respectively. There were no purchases of loans receivable for the six months ended June 30, 2011 and 2010. Allowance for Loan Losses and Allowance for Off-Balance Sheet Items Activity in the allowance for loan losses and off-balance sheet items was as follows for the periods indicated:
|  | As of and for the |  |  | As of and for the |
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | March 31, |  |  | June 30, |  |  | June 30, |  |  | June 30, |
|  | 2011 |  |  | 2011 |  |  | 2010 |  |  | 2011 |  |  | 2010 |
|  |  |  |  |  |  |  |  |  | (In Thousands) |  |  |  |  |  |  |  |  |
Allowance for Loan Losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at Beginning of Period |  | $ | 125,780 |  |  | $ | 146,059 |  |  | $ | 177,820 |  |  | $ | 146,059 |  |  | $ | 144,996 |
Actual Charge-Offs |  |  | (20,652 | ) |  |  | (25,181 | ) |  |  | (40,718 | ) |  |  | (45,833 | ) |  |  | (70,832 | )
Recoveries on Loans Previously Charged Off |  |  | 4,151 |  |  |  | 3,626 |  |  |  | 1,772 |  |  |  | 7,777 |  |  |  | 5,493 |
Net Loan Charge-Offs |  |  | (16,501 | ) |  |  | (21,555 | ) |  |  | (38,946 | ) |  |  | (38,056 | ) |  |  | (65,339 | )
Provision Charged to Operating Expenses |  |  | (250 | ) |  |  | 1,276 |  |  |  | 37,793 |  |  |  | 1,026 |  |  |  | 97,010 |
Balance at End of Period |  | $ | 109,029 |  |  | $ | 125,780 |  |  | $ | 176,667 |  |  | $ | 109,029 |  |  | $ | 176,667 |
Allowance for Off-Balance Sheet Items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at Beginning of Period |  | $ | 2,141 |  |  | $ | 3,417 |  |  | $ | 2,655 |  |  | $ | 3,417 |  |  | $ | 3,876 |
Provision Charged to Operating Expenses |  |  | 250 |  |  |  | (1,276 | ) |  |  | (293 | ) |  |  | (1,026 | ) |  |  | (1,514 | )
Balance at End of Period |  | $ | 2,391 |  |  | $ | 2,141 |  |  | $ | 2,362 |  |  | $ | 2,391 |  |  | $ | 2,362 |
The following table details the information on the allowance for loan losses by portfolio segment for the three months ended June 30, 2011 and 2010.
|  |  |  |  |  | Commercial |  |  |  |  |  |  |  |  |  |
|  | Real Estate |  |  | and Industrial |  |  | Consumer |  |  | Unallocated |  |  | Total |
|  | (Dollars in Thousands) |
June 30, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for Loan Losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning Balance |  | $ | 25,884 |  |  | $ | 93,878 |  |  | $ | 1,732 |  |  | $ | 4,286 |  |  | $ | 125,780 |
Charge-Offs |  |  | 5,591 |  |  |  | 14,741 |  |  |  | 320 |  |  |  | — |  |  |  | 20,652 |
Recoveries on Loans Previously Charged Off |  |  | 2,223 |  |  |  | 1,915 |  |  |  | 13 |  |  |  | — |  |  |  | 4,151 |
Provision |  |  | 1,599 |  |  |  | 1,793 |  |  |  | 162 |  |  |  | (3,804 | ) |  |  | (250 | )
Ending Balance |  | $ | 24,115 |  |  | $ | 82,845 |  |  | $ | 1,587 |  |  | $ | 482 |  |  | $ | 109,029 |
Ending Balance: Individually Evaluated for Impairment |  | $ | 3,324 |  |  | $ | 26,149 |  |  | $ | 223 |  |  | $ | — |  |  | $ | 29,696 |
Ending Balance: Collectively Evaluated for Impairment |  | $ | 20,791 |  |  | $ | 56,696 |  |  | $ | 1,364 |  |  | $ | 482 |  |  | $ | 79,333 |
Loans Receivable: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending Balance |  | $ | 787,585 |  |  | $ | 1,234,519 |  |  | $ | 46,500 |  |  | $ | — |  |  | $ | 2,068,604 |
Ending Balance: Individually Evaluated for Impairment |  | $ | 78,065 |  |  | $ | 114,560 |  |  | $ | 870 |  |  | $ | — |  |  | $ | 193,495 |
Ending Balance: Collectively Evaluated for Impairment |  | $ | 709,520 |  |  | $ | 1,119,959 |  |  | $ | 45,630 |  |  | $ | — |  |  | $ | 1,875,109 |
June 30, 2010 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for Loan Losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning Balance |  | $ | 31,597 |  |  | $ | 143,994 |  |  | $ | 2,229 |  |  | $ | — |  |  | $ | 177,820 |
Charge-Offs |  |  | 12,412 |  |  |  | 27,951 |  |  |  | 355 |  |  |  | — |  |  |  | 40,718 |
Recoveries on Loans Previously Charged Off |  |  | 162 |  |  |  | 1,530 |  |  |  | 80 |  |  |  | — |  |  |  | 1,772 |
Provision |  |  | 12,698 |  |  |  | 22,931 |  |  |  | 244 |  |  |  | 1,920 |  |  |  | 37,793 |
Ending Balance |  | $ | 32,045 |  |  | $ | 140,504 |  |  | $ | 2,198 |  |  | $ | 1,920 |  |  | $ | 176,667 |
Ending Balance: Individually Evaluated for Impairment |  | $ | 3,963 |  |  | $ | 24,495 |  |  | $ | 23 |  |  | $ | — |  |  | $ | 28,481 |
Ending Balance: Collectively Evaluated for Impairment |  | $ | 28,082 |  |  | $ | 116,009 |  |  | $ | 2,175 |  |  | $ | 1,920 |  |  | $ | 148,186 |
Loans Receivable: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending Balance |  | $ | 913,966 |  |  | $ | 1,503,948 |  |  | $ | 55,790 |  |  | $ | — |  |  | $ | 2,473,704 |
Ending Balance: Individually Evaluated for Impairment |  | $ | 100,854 |  |  | $ | 161,138 |  |  | $ | 388 |  |  | $ | — |  |  | $ | 262,380 |
Ending Balance: Collectively Evaluated for Impairment |  | $ | 813,112 |  |  | $ | 1,342,810 |  |  | $ | 55,402 |  |  | $ | — |  |  | $ | 2,211,324 |
The following table details the information on the allowance for loan losses by portfolio segment for the six months ended June 30, 2011 and 2010.
|  |  |  |  |  | Commercial |  |  |  |  |  |  |  |  |  |
|  | Real Estate |  |  | and Industrial |  |  | Consumer |  |  | Unallocated |  |  | Total |
|  | (Dollars in Thousands) |
June 30, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for Loan Losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning Balance |  | $ | 32,766 |  |  | $ | 108,986 |  |  | $ | 2,079 |  |  | $ | 2,228 |  |  | $ | 146,059 |
Charge-Offs |  |  | 12,644 |  |  |  | 32,693 |  |  |  | 496 |  |  |  | — |  |  |  | 45,833 |
Recoveries on Loans Previously Charged Off |  |  | 2,744 |  |  |  | 5,011 |  |  |  | 22 |  |  |  | — |  |  |  | 7,777 |
Provision |  |  | 1,249 |  |  |  | 1,541 |  |  |  | (18 | ) |  |  | (1,746 | ) |  |  | 1,026 |
Ending Balance |  | $ | 24,115 |  |  | $ | 82,845 |  |  | $ | 1,587 |  |  | $ | 482 |  |  | $ | 109,029 |
Ending Balance: Individually Evaluated for Impairment |  | $ | 3,324 |  |  | $ | 26,149 |  |  | $ | 223 |  |  | $ | — |  |  | $ | 29,696 |
Ending Balance: Collectively Evaluated for Impairment |  | $ | 20,791 |  |  | $ | 56,696 |  |  | $ | 1,364 |  |  | $ | 482 |  |  | $ | 79,333 |
Loans Receivable: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending Balance |  | $ | 787,585 |  |  | $ | 1,234,519 |  |  | $ | 46,500 |  |  | $ | — |  |  | $ | 2,068,604 |
Ending Balance: Individually Evaluated for Impairment |  | $ | 78,065 |  |  | $ | 114,560 |  |  | $ | 870 |  |  | $ | — |  |  | $ | 193,495 |
Ending Balance: Collectively Evaluated for Impairment |  | $ | 709,520 |  |  | $ | 1,119,959 |  |  | $ | 45,630 |  |  | $ | — |  |  | $ | 1,875,109 |
June 30, 2010 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for Loan Losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning Balance |  | $ | 30,081 |  |  | $ | 112,225 |  |  | $ | 2,690 |  |  | $ | — |  |  | $ | 144,996 |
Charge-Offs |  |  | 17,817 |  |  |  | 52,037 |  |  |  | 978 |  |  |  | — |  |  |  | 70,832 |
Recoveries on Loans Previously Charged Off |  |  | 1,865 |  |  |  | 3,507 |  |  |  | 121 |  |  |  | — |  |  |  | 5,493 |
Provision |  |  | 17,916 |  |  |  | 76,809 |  |  |  | 365 |  |  |  | 1,920 |  |  |  | 97,010 |
Ending Balance |  | $ | 32,045 |  |  | $ | 140,504 |  |  | $ | 2,198 |  |  | $ | 1,920 |  |  | $ | 176,667 |
Ending Balance: Individually Evaluated for Impairment |  | $ | 3,963 |  |  | $ | 24,495 |  |  | $ | 23 |  |  | $ | — |  |  | $ | 28,481 |
Ending Balance: Collectively Evaluated for Impairment |  | $ | 28,082 |  |  | $ | 116,009 |  |  | $ | 2,175 |  |  | $ | 1,920 |  |  | $ | 148,186 |
Loans Receivable: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending Balance |  | $ | 913,966 |  |  | $ | 1,503,948 |  |  | $ | 55,790 |  |  | $ | — |  |  | $ | 2,473,704 |
Ending Balance: Individually Evaluated for Impairment |  | $ | 100,854 |  |  | $ | 161,138 |  |  | $ | 388 |  |  | $ | — |  |  | $ | 262,380 |
Ending Balance: Collectively Evaluated for Impairment |  | $ | 813,112 |  |  | $ | 1,342,810 |  |  | $ | 55,402 |  |  | $ | — |  |  | $ | 2,211,324 |
Credit Quality Indicators As part of the on-going monitoring of the credit quality of our loan portfolio, we utilize an internal loan grading system to identify credit risk and assign an appropriate grade (from 0 to 8) for each and every loan in our loan portfolio. Pass-grade (0 to 4) loans are reviewed for reclassification on an annual basis, while criticized (5) and classified (6 and 7) loans are reviewed semi-annually. Additional adjustments are made when determined to be necessary. The loan grade definitions are as follows: Pass: These loans, risk rated 0 to 4, are in compliance in all respects with the Bank’s credit policy and regulatory requirements, and do not exhibit any potential for defined weaknesses as defined under “Special Mention” (5), “Substandard” (6) or “Doubtful” (7). This is the strongest level of the Bank’s loan grading system. It incorporates all performing loans with no credit weaknesses. It includes cash and stock/security secured loans or other investment grade loans. Following are sub categories within the Pass grade: Pass 0: Secured in full by cash or cash equivalents. Pass 1: A very strong, well-structured credit relationship with an established borrower. The relationship should be supported by audited financial statements indicating cash flow, well in excess of debt service requirements, excellent liquidity, and very strong capital. Pass 2: These loans require a well-structured credit that may not be as seasoned or as high quality as grade 1. Capital, liquidity, debt service capacity, and collateral coverage must all be well above average. This category includes individuals with substantial net worth supported by liquid assets and strong income. Pass 3: Loans or commitments to borrowers exhibiting a fully acceptable credit risk. These borrowers should have sound balance sheet proportions and significant cash flow coverage, although they may be somewhat more leveraged and exhibit greater fluctuations in earning and financing but generally would be considered very attractive to the Bank as a borrower. The borrower has historically demonstrated the ability to manage economic adversity. Real estate and asset-based loans which are designated this grade must have characteristics that place them well above the minimum underwriting requirements. Asset-based borrowers assigned this grade must exhibit extremely favorable leverage and cash flow characteristics and consistently demonstrate a high level of unused borrowing capacity Pass 4: Loans or commitments to borrowers exhibiting either somewhat weaker balance sheet proportions or positive, but inconsistent, cash flow coverage. These borrowers may exhibit somewhat greater credit risk, and as a result of this, the Bank may have secured its exposure in an effort to mitigate the risk. If so, the collateral taken should provide an unquestionable ability to repay the indebtedness in full through liquidation, if necessary. Cash flows should be adequate to cover debt service and fixed obligations, although there may be a question about the borrower’s ability to provide alternative sources of funds in emergencies. Better quality real estate and asset-based borrowers who fully comply with all underwriting standards and are performing according to projections would be assigned this grade. Special Mention or 5: A Special Mention credit has potential weaknesses that deserve management’s close attention, as the borrower is exhibiting deteriorating trends that, if not corrected, could jeopardize repayment of the debt and result in a “Substandard” (6) grade. Credits which have significant actual, not potential, weaknesses are assigned lower grades than this grade. Substandard or 6: A Substandard credit has a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. A credit graded Substandard is not protected by the sound worth and paying capacity of the borrower, or of the value and type of collateral pledged. With a Substandard loan, there is a distinct possibility that the Bank will sustain some loss if the weaknesses or deficiencies are not corrected. Doubtful or 7: A Doubtful credit is one that has critical weaknesses that would make the collection or liquidation of the full amount due improbable. However, there may be pending events that may work to strengthen the credit, and therefore the amount or timing of a possible loss cannot be determined at the current time. Loss or 8: Loans classified Loss are considered uncollectible and of such little value that their continuance as active Bank assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather that the loan should be charged off now, even though partial or full recovery may be possible in the future. Loans classified Loss will be charged off in a timely manner.
|  | Pass |  |  | Criticized |  |  | Classified |  |  |  |
|  | (Grade 0-4) |  |  | (Grade 5) |  |  | (Grade 6-7) |  |  | Total Loans |
|  | (In Thousands) |
June 30, 2011: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real Estate Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Property |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | $ | 274,428 |  |  | $ | 11,015 |  |  | $ | 33,903 |  |  | $ | 319,346 |
Land |  |  | 3,610 |  |  |  | — |  |  |  | 26,256 |  |  |  | 29,866 |
Other |  |  | 278,636 |  |  |  | 20,966 |  |  |  | 40,028 |  |  |  | 339,630 |
Construction |  |  | 8,529 |  |  |  | 14,080 |  |  |  | 18,075 |  |  |  | 40,684 |
Residential Property |  |  | 54,936 |  |  |  | — |  |  |  | 3,123 |  |  |  | 58,059 |
Commercial and Industrial Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Term |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unsecured |  |  | 113,299 |  |  |  | 17,597 |  |  |  | 55,206 |  |  |  | 186,102 |
Secured by Real Estate |  |  | 617,367 |  |  |  | 72,790 |  |  |  | 156,015 |  |  |  | 846,172 |
Commercial Lines of Credit |  |  | 38,580 |  |  |  | 8,758 |  |  |  | 3,298 |  |  |  | 50,636 |
SBA |  |  | 71,024 |  |  |  | 580 |  |  |  | 33,445 |  |  |  | 105,049 |
International |  |  | 40,698 |  |  |  | 312 |  |  |  | 5,550 |  |  |  | 46,560 |
Consumer Loans |  |  | 43,990 |  |  |  | 574 |  |  |  | 1,936 |  |  |  | 46,500 |
Total |  | $ | 1,545,097 |  |  | $ | 146,672 |  |  | $ | 376,835 |  |  | $ | 2,068,604 |
December 31, 2010: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real Estate Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Property |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | $ | 302,696 |  |  | $ | 18,507 |  |  | $ | 38,568 |  |  | $ | 359,771 |
Land |  |  | 3,845 |  |  |  | — |  |  |  | 37,353 |  |  |  | 41,198 |
Other |  |  | 265,957 |  |  |  | 20,804 |  |  |  | 41,493 |  |  |  | 328,254 |
Construction |  |  | 12,958 |  |  |  | 25,897 |  |  |  | 22,139 |  |  |  | 60,994 |
Residential Property |  |  | 59,329 |  |  |  | — |  |  |  | 3,315 |  |  |  | 62,644 |
Commercial and Industrial Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Term |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unsecured |  |  | 134,709 |  |  |  | 24,620 |  |  |  | 63,739 |  |  |  | 223,068 |
Secured by Real Estate |  |  | 617,200 |  |  |  | 107,645 |  |  |  | 171,086 |  |  |  | 895,931 |
Commercial Lines of Credit |  |  | 40,195 |  |  |  | 8,019 |  |  |  | 10,841 |  |  |  | 59,055 |
SBA |  |  | 68,994 |  |  |  | 731 |  |  |  | 35,965 |  |  |  | 105,690 |
International |  |  | 38,447 |  |  |  | 4,693 |  |  |  | 1,027 |  |  |  | 44,167 |
Consumer Loans |  |  | 48,027 |  |  |  | 347 |  |  |  | 1,926 |  |  |  | 50,300 |
Total |  | $ | 1,592,357 |  |  | $ | 211,263 |  |  | $ | 427,452 |  |  | $ | 2,231,072 |
The following is an aging analysis of past due loans, disaggregated by loan class, as of June 30, 2011 and December 31, 2010:
|  | 30-59 Days Past |  |  |  |  |  |  | 90 Days or More |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Accruing 90 Days or |
|  | Due |  |  | 60-89 Days Past Due |  |  | Past Due |  |  | Total Past Due |  |  | Current |  |  | Total Loans |  |  | More Past Due |
|  | (In Thousands) |
June 30, 2011: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real Estate Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Property |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 319,346 |  |  | $ | 319,346 |  |  | $ | — |
Land |  |  | — |  |  |  | — |  |  |  | 21,970 |  |  |  | 21,970 |  |  |  | 7,896 |  |  |  | 29,866 |  |  |  | — |
Other |  |  | 4,081 |  |  |  | — |  |  |  | — |  |  |  | 4,081 |  |  |  | 335,549 |  |  |  | 339,630 |  |  |  | — |
Construction |  |  | — |  |  |  | — |  |  |  | 12,298 |  |  |  | 12,298 |  |  |  | 28,386 |  |  |  | 40,684 |  |  |  | — |
Residential Property |  |  | 1,883 |  |  |  | 895 |  |  |  | 695 |  |  |  | 3,473 |  |  |  | 54,586 |  |  |  | 58,059 |  |  |  | — |
Commercial and Industrial Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Term |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unsecured |  |  | 1,874 |  |  |  | 759 |  |  |  | 1,237 |  |  |  | 3,870 |  |  |  | 182,232 |  |  |  | 186,102 |  |  |  | — |
Secured by Real Estate |  |  | 4,816 |  |  |  | 2,142 |  |  |  | 2,104 |  |  |  | 9,062 |  |  |  | 837,110 |  |  |  | 846,172 |  |  |  | — |
Commercial Lines of Credit |  |  | — |  |  |  | — |  |  |  | 1,422 |  |  |  | 1,422 |  |  |  | 49,214 |  |  |  | 50,636 |  |  |  | — |
SBA |  |  | 3,136 |  |  |  | 3,740 |  |  |  | 9,943 |  |  |  | 16,819 |  |  |  | 88,230 |  |  |  | 105,049 |  |  |  | — |
International |  |  | 2,943 |  |  |  | 399 |  |  |  | — |  |  |  | 3,342 |  |  |  | 43,218 |  |  |  | 46,560 |  |  |  | — |
Consumer Loans |  |  | 1,024 |  |  |  | 321 |  |  |  | 40 |  |  |  | 1,385 |  |  |  | 45,115 |  |  |  | 46,500 |  |  |  | — |
Total |  | $ | 19,757 |  |  | $ | 8,256 |  |  | $ | 49,709 |  |  | $ | 77,722 |  |  | $ | 1,990,882 |  |  | $ | 2,068,604 |  |  | $ | — |
December 31, 2010: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real Estate Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Property |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | $ | — |  |  | $ | — |  |  | $ | 7,857 |  |  | $ | 7,857 |  |  | $ | 351,913 |  |  | $ | 359,770 |  |  | $ | — |
Land |  |  | — |  |  |  | — |  |  |  | 25,725 |  |  |  | 25,725 |  |  |  | 15,471 |  |  |  | 41,196 |  |  |  | — |
Other |  |  | — |  |  |  | — |  |  |  | 7,212 |  |  |  | 7,212 |  |  |  | 321,043 |  |  |  | 328,255 |  |  |  | — |
Construction |  |  | 10,409 |  |  |  | — |  |  |  | 8,477 |  |  |  | 18,886 |  |  |  | 42,108 |  |  |  | 60,994 |  |  |  | — |
Residential Property |  |  | 522 |  |  |  | — |  |  |  | 1,240 |  |  |  | 1,762 |  |  |  | 60,883 |  |  |  | 62,645 |  |  |  | — |
Commercial and Industrial Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Term |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unsecured |  |  | 2,208 |  |  |  | 2,781 |  |  |  | 6,842 |  |  |  | 11,831 |  |  |  | 211,237 |  |  |  | 223,068 |  |  |  | — |
Secured by Real Estate |  |  | 5,111 |  |  |  | 3,720 |  |  |  | 10,530 |  |  |  | 19,361 |  |  |  | 876,570 |  |  |  | 895,931 |  |  |  | — |
Commercial Lines of Credit |  |  | 454 |  |  |  | — |  |  |  | 1,745 |  |  |  | 2,199 |  |  |  | 56,857 |  |  |  | 59,056 |  |  |  | — |
SBA |  |  | 2,287 |  |  |  | 8,205 |  |  |  | 13,957 |  |  |  | 24,449 |  |  |  | 81,241 |  |  |  | 105,690 |  |  |  | — |
International |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 44,167 |  |  |  | 44,167 |  |  |  | — |
Consumer Loans |  |  | 596 |  |  |  | 202 |  |  |  | 865 |  |  |  | 1,663 |  |  |  | 48,637 |  |  |  | 50,300 |  |  |  | — |
Total |  | $ | 21,587 |  |  | $ | 14,908 |  |  | $ | 84,450 |  |  | $ | 120,945 |  |  | $ | 2,110,127 |  |  | $ | 2,231,072 |  |  | $ | — |
Impaired Loans Loans are identified and classified as impaired when, non-accrual and principal or interest payments have been contractually past due for 90 days or more, unless the loan is both well-collateralized and in the process of collection; or they are classified as Troubled Debt Restructuring (TDR) loans to offer terms not typically granted by the Bank or when current information or events make it unlikely to collect in full according to the contractual terms of the loan agreements; or they are classified as Substandard loans in an amount over 5% of the Bank’s Tier 1 Capital; or there is a deterioration in the borrower’s financial condition that raises uncertainty as to timely collection of either principal or interest; or full payment of both interest and principal is in doubt according to the original contractual terms. We evaluate loan impairment in accordance with applicable GAAP. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent, less costs to sell. If the measure of the impaired loan is less than the recorded investment in the loan, the deficiency will be charged off against the allowance for loan losses or, alternatively, a specific allocation will be established. Additionally, loans that are considered impaired are specifically excluded from the quarterly migration analysis when determining the amount of the allowance for loan losses required for the period. The allowance for collateral-dependent loans is determined by calculating the difference between the outstanding loan balance and the collateral value as determined by recent appraisals. The allowance for collateral-dependent loans varies from loan to loan based on the collateral coverage of the loan at the time of designation as non-performing. We continue to monitor the collateral coverage, based on recent appraisals, on these loans on a quarterly basis and adjust the allowance accordingly. The following table provides information on impaired loans, disaggregated by loan class, as of the dates indicated:
|  | Recorded |  |  | Unpaid Principal |  |  | With No Related |  |  | With an Allowance |  |  | Related |
|  | Investment |  |  | Balance |  |  | Allowance Recorded |  |  | Recorded |  |  | Allowance |
|  |  |  |  |  |  |  |  |  | (In Thousands) |  |  |  |  |  |  |  |  |
June 30, 2011: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real Estate Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Property |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | $ | 15,810 |  |  | $ | 16,329 |  |  | $ | 8,845 |  |  | $ | 6,963 |  |  | $ | 565 |
Land |  |  | 26,008 |  |  |  | 26,008 |  |  |  | 25,184 |  |  |  | 825 |  |  |  | 105 |
Other |  |  | 21,624 |  |  |  | 21,748 |  |  |  | 3,698 |  |  |  | 17,926 |  |  |  | 2,623 |
Construction |  |  | 12,298 |  |  |  | 12,396 |  |  |  | 12,298 |  |  |  | — |  |  |  | — |
Residential Property |  |  | 2,325 |  |  |  | 2,386 |  |  |  | 1,982 |  |  |  | 343 |  |  |  | 31 |
Commercial and Industrial Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Term |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unsecured |  |  | 14,999 |  |  |  | 15,463 |  |  |  | 661 |  |  |  | 14,338 |  |  |  | 11,040 |
Secured by Real Estate |  |  | 83,382 |  |  |  | 85,570 |  |  |  | 41,163 |  |  |  | 42,219 |  |  |  | 9,092 |
Commercial Lines of Credit |  |  | 3,028 |  |  |  | 3,097 |  |  |  | 1,218 |  |  |  | 1,810 |  |  |  | 1,394 |
SBA |  |  | 17,780 |  |  |  | 19,437 |  |  |  | 7,340 |  |  |  | 10,441 |  |  |  | 1,380 |
International |  |  | 3,243 |  |  |  | 3,243 |  |  |  | — |  |  |  | 3,243 |  |  |  | 3,243 |
Consumer Loans |  |  | 870 |  |  |  | 898 |  |  |  | 379 |  |  |  | 491 |  |  |  | 223 |
Total |  | $ | 201,367 |  |  | $ | 206,575 |  |  | $ | 102,768 |  |  | $ | 98,599 |  |  | $ | 29,696 |
December 31, 2010: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real Estate Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Property |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | $ | 17,606 |  |  | $ | 18,050 |  |  | $ | 6,336 |  |  | $ | 11,270 |  |  | $ | 1,543 |
Land |  |  | 35,207 |  |  |  | 35,295 |  |  |  | 5,482 |  |  |  | 29,725 |  |  |  | 1,485 |
Other |  |  | 11,357 |  |  |  | 11,476 |  |  |  | 10,210 |  |  |  | 1,147 |  |  |  | 33 |
Construction |  |  | 17,691 |  |  |  | 17,831 |  |  |  | 13,992 |  |  |  | 3,699 |  |  |  | 280 |
Residential Property |  |  | 1,926 |  |  |  | 1,990 |  |  |  | 1,926 |  |  |  | — |  |  |  | — |
Commercial and Industrial Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Term |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unsecured |  |  | 17,847 |  |  |  | 18,799 |  |  |  | 6,465 |  |  |  | 11,382 |  |  |  | 10,313 |
Secured by Real Estate |  |  | 80,213 |  |  |  | 81,395 |  |  |  | 35,154 |  |  |  | 45,059 |  |  |  | 11,831 |
Commercial Lines of Credit |  |  | 4,067 |  |  |  | 4,116 |  |  |  | 1,422 |  |  |  | 2,645 |  |  |  | 1,321 |
SBA |  |  | 17,715 |  |  |  | 18,544 |  |  |  | 7,112 |  |  |  | 10,603 |  |  |  | 2,122 |
International |  |  | 127 |  |  |  | 141 |  |  |  | — |  |  |  | 127 |  |  |  | 127 |
Consumer Loans |  |  | 934 |  |  |  | 951 |  |  |  | 393 |  |  |  | 541 |  |  |  | 393 |
Total |  | $ | 204,690 |  |  | $ | 208,588 |  |  | $ | 88,492 |  |  | $ | 116,198 |  |  | $ | 29,448 |
The following table provides information on impaired loans, disaggregated by loan class, as of the dates indicated:
|  | Average |  |  | Interest |  |  | Average |  |  | Interest |
|  | Recorded |  |  | Income |  |  | Recorded |  |  | Income |
|  | Investment |  |  | Recognized |  |  | Investment |  |  | Recognized |
|  | for the Three |  |  | for the Three |  |  | for the Six |  |  | for the Six |
|  | Months |  |  | Months |  |  | Months |  |  | Months |
|  | Ended |  |  | Ended(1) |  |  | Ended |  |  | Ended(1) |
|  | (In Thousands) |
June 30, 2011: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real Estate Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Property |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | $ | 17,260 |  |  | $ | 26 |  |  | $ | 17,633 |  |  | $ | 51 |
Land |  |  | 27,561 |  |  |  | — |  |  |  | 29,023 |  |  |  | — |
Other |  |  | 21,849 |  |  |  | 60 |  |  |  | 21,864 |  |  |  | 121 |
Construction |  |  | 12,535 |  |  |  | — |  |  |  | 12,578 |  |  |  | — |
Residential Property |  |  | 2,371 |  |  |  | — |  |  |  | 2,386 |  |  |  | — |
Commercial and Industrial Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Term |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unsecured |  |  | 15,365 |  |  |  | 53 |  |  |  | 15,571 |  |  |  | 105 |
Secured by Real Estate |  |  | 84,898 |  |  |  | 456 |  |  |  | 85,504 |  |  |  | 821 |
Commercial Lines of Credit |  |  | 3,076 |  |  |  | 2 |  |  |  | 3,090 |  |  |  | 4 |
SBA |  |  | 18,900 |  |  |  | 31 |  |  |  | 19,107 |  |  |  | 57 |
International |  |  | 3,243 |  |  |  | — |  |  |  | 2,255 |  |  |  | — |
Consumer Loans |  |  | 889 |  |  |  | 1 |  |  |  | 893 |  |  |  | 1 |
Total |  | $ | 207,947 |  |  | $ | 629 |  |  | $ | 209,904 |  |  | $ | 1,160 |
June 30, 2010: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real Estate Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Property |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail |  | $ | 17,977 |  |  | $ | — |  |  | $ | 25,664 |  |  | $ | — |
Land |  |  | 43,425 |  |  |  | 59 |  |  |  | 45,164 |  |  |  | 114 |
Other |  |  | 16,492 |  |  |  | 55 |  |  |  | 18,524 |  |  |  | 216 |
Construction |  |  | 9,823 |  |  |  | — |  |  |  | 9,823 |  |  |  | — |
Residential Property |  |  | 2,725 |  |  |  | — |  |  |  | 2,784 |  |  |  | — |
Commercial and Industrial Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Term |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unsecured |  |  | 20,289 |  |  |  | — |  |  |  | 18,278 |  |  |  | 9 |
Secured by Real Estate |  |  | 111,388 |  |  |  | 67 |  |  |  | 104,745 |  |  |  | 293 |
Commercial Lines of Credit |  |  | 6,132 |  |  |  | 56 |  |  |  | 5,499 |  |  |  | 82 |
SBA |  |  | 25,573 |  |  |  | — |  |  |  | 26,083 |  |  |  | — |
International |  |  | 284 |  |  |  | — |  |  |  | 588 |  |  |  | — |
Consumer Loans |  |  | 396 |  |  |  | — |  |  |  | 531 |  |  |  | — |
Total |  | $ | 254,504 |  |  | $ | 237 |  |  | $ | 257,683 |  |  | $ | 714 |
(1) |  | Represents interest income recognized on impaired loans subsequent to classification as impaired.
For the three and six months ended June 30, 2011, we recognized interest income of $0 and $33,000, respectively, on one impaired commercial term loan secured by real estate using a cash-basis method. For the three and six months ended June 30, 2010, we recognized interest income of $67,000 and $204,000, respectively, on one impaired commercial term loan secured by real estate using a cash-basis method. Except for such loan, no other interest income was recognized on impaired loans subsequent to classification as impaired using a cash-basis method. The following is a summary of interest foregone on impaired loans for the periods indicated:
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
|  | 2011 |  |  | 2010 |  |  | 2011 |  |  | 2010 |
|  | (In Thousands) |
Interest Income That Would Have Been Recognized Had Impaired Loans Performed in Accordance With Their Original Terms |  | $ | 2,001 |  |  | $ | 3,755 |  |  | $ | 4,475 |  |  | $ | 7,030 |
Less: Interest Income Recognized on Impaired Loans |  |  | (629 | ) |  |  | (237 | ) |  |  | (1,160 | ) |  |  | (714 | )
Interest Foregone on Impaired Loans |  | $ | 1,372 |  |  | $ | 3,518 |  |  | $ | 3,315 |  |  | $ | 6,316 |
There were no commitments to lend additional funds to borrowers whose loans are included above. Non-Accrual Loans Loans are placed on non-accrual status when, in the opinion of management, the full timely collection of principal or interest is in doubt. Generally, the accrual of interest is discontinued when principal or interest payments become more than 90 days past due, unless management believes the loan is adequately collateralized and in the process of collection. However, in certain instances, we may place a particular loan on non-accrual status earlier, depending upon the individual circumstances surrounding the loan’s delinquency. When a loan is placed on non-accrual status, previously accrued but unpaid interest is reversed against current income. Subsequent collections of cash are applied as principal reductions when received, except when the ultimate collectibility of principal is probable, in which case interest payments are credited to income. Non-accrual loans may be restored to accrual status when principal and interest become current and full repayment is expected. The following table details non-accrual loans, disaggregated by class of loan, for the periods indicated:
|  | June 30, |  |  | December 31, |
|  | 2011 |  |  | 2010 |
|  | (In Thousands) |
Real Estate Loans: |  |  |  |  |  |  |  |
Commercial Property |  |  |  |  |  |  |  |
Retail |  | $ | 14,335 |  |  | $ | 10,998 |
Land |  |  | 25,184 |  |  |  | 25,725 |
Other |  |  | 3,772 |  |  |  | 8,953 |
Construction |  |  | 12,298 |  |  |  | 17,691 |
Residential Property |  |  | 1,460 |  |  |  | 1,926 |
Commercial and Industrial Loans: |  |  |  |  |  |  |  |
Commercial Term |  |  |  |  |  |  |  |
Unsecured |  |  | 10,758 |  |  |  | 17,065 |
Secured by Real Estate |  |  | 46,454 |  |  |  | 31,053 |
Commercial Lines of Credit |  |  | 2,905 |  |  |  | 2,798 |
SBA |  |  | 23,263 |  |  |  | 25,054 |
International |  |  | 3,243 |  |  |  | 127 |
Consumer Loans |  |  | 824 |  |  |  | 1,047 |
Total |  | $ | 144,496 |  |  | $ | 142,437 |
The following table details non-performing assets as of the dates indicated:
|  | June 30, |  |  | December 31, |
|  | 2011 |  |  | 2010 |
|  | (In Thousands) |
Non-Accrual Loans |  | $ | 144,496 |  |  | $ | 142,437 |
Loans 90 Days or More Past Due and Still Accruing |  |  | — |  |  |  | — |
Total Non-Performing Loans |  |  | 144,496 |  |  |  | 142,437 |
Other Real Estate Owned |  |  | 1,340 |  |  |  | 4,089 |
Total Non-Performing Assets |  | $ | 145,836 |  |  | $ | 146,526 |
Troubled Debt Restructurings on Accrual Status |  | $ | 19,793 |  |  | $ | 47,395 |
Loans on non-accrual status, excluding non-performing loans held for sale of $22.6 million, totaled $144.5 million as of June 30, 2011, compared to $142.4 million as of December 31, 2010, representing an 1.4 percent increase. Delinquent loans (defined as 30 days or more past due), excluding loans held for sale, were $77.7 million as of June 30, 2011, compared to $120.9 million as of December 31, 2010, representing a 35.7 percent decrease. As of June 30, 2011, other real estate owned consisted of five properties, primarily located in California, with a combined net carrying value of $1.3 million. During the six months ended June 30, 2011, five properties, with a carrying value of $2.8 million, were transferred from loans receivable to other real estate owned, and eight properties, with a carrying value of $4.4 million, were sold and a loss of $681,000 was recognized. As of December 31, 2010, other real estate owned consisted of eight properties with a combined net carrying value of $4.1 million. During the six months ended June 30, 2011, we restructured monthly payments on 92 loans, with a net carrying value of $77.4 million as of June 30, 2011, through temporary payment structure modifications ranging from changing the amount of principal and interest due monthly to allowing for interest only due monthly payments for six months or less. For the restructured loans on accrual status, we believe that, based on the financial capabilities of the borrowers at the time of the loan restructuring and the borrowers’ past performance in the payment of debt service under the previous loan terms, performance and collection under the revised terms is probable. As of June 30, 2011, TDR loans, excluding loans held for sale, totaled $76.0 million, all of which were temporary interest rate reductions, and a $13.2 million reserve relating to these loans was included in the allowance for loan losses. As of December 31, 2010, TDR loans, excluding loans held for sale, totaled $72.2 million and the related allowance for loan losses was $10.2 million.

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