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Impaired Loans
<br />The following tables present information related to impaired loans that are individually assessed as of
<br />December 31, 2011 and 2010:
<br />(dollars in thousands)
<br />Recorded investment in impaired loans
<br />Impaired loans and leases with related
<br />allowance
<br />Impaired loans and leases with no related
<br />allowance
<br />Total impaired loans
<br />Allowance for loan and lease losses on
<br />impaired loans
<br />Total unpaid principal balance
<br />Average recorded investment in impaired
<br />loans and leases
<br />(dollars in thousands)
<br />Recorded inveshnent in impaired loans
<br />Impaired loans and leases with related
<br />allowance
<br />Impaired loans and leases with no related
<br />allowance
<br />Total impaired loans
<br />Allowance for loan and lease losses on
<br />impaired loans
<br />Total unpaid principal balance
<br />Average recorded investment in impaired
<br />loans and leases
<br />December 31, 2011
<br />Commercial Product
<br />Commercial
<br />& Commercial Equipment
<br />industrial real estate Construction leases Agriculture
<br />$ 53,657 $ 63,202
<br />57,819 186,574
<br />$111,476 $249,776
<br />9,009 12,910
<br />138,128 283,320
<br />188,854 392,228
<br />Commercial
<br />industrial
<br />$ 12,275 $ 1,954
<br />102,676 7,366
<br />$114,951 $ 9,320
<br />760 692
<br />162,546 9,320
<br />200,906 14,148
<br />December 31, 2010
<br />Commercial Product
<br />Total
<br />$ 2,808 $133,896
<br />52,924 407,359
<br />$55,732 $541,255
<br />174 23,545
<br />71,464 664,778
<br />72,425 868,561
<br />Commercial Equipment
<br />real estate Construction leases Agriculture
<br />Total
<br />$ 92,683 $130,755 $ 82,669 $13,787 $ 15,460 $ 335,354
<br />99,435
<br />$192,118
<br />366,973 169,365 4,467 73,143 713,383
<br />$497,728 $252,034 $18,254 $ 88,603 $1,048,737
<br />$ 33,303 $ 28,417 $ 9,209 $ 6,074 $ 3,027 $ 80,030
<br />275,358 588,595 372,250 18,253 145,160 1,399,616
<br />203,322 442,276 309,598
<br />23,769 111,801 1,090,766
<br />Impaired loans without a related allowance for credit losses are generally collateralized by assets with
<br />fair values (on an "as -is" basis) in excess of the recorded investment in the loans. Payments on impaired
<br />loans are generally applied to reduce the outstanding principal balance of such loans. Interest income
<br />recognized on impaired loans was not material for 2011 and 2010.
<br />Troubled Debt Restructuring
<br />In situations where for economic or legal reasons related to the borrower's financial difficulties, the
<br />Bank grants a concession to the borrower that it would not otherwise consider, the related loan is classified
<br />as a TDR. At December 31, 2011 and 2010, loan modifications that qualified as TDRs amounted to $653.1
<br />million and $354.1 million for commercial loans (including those that were held for sale) and $266.3
<br />million and $190.8 million for consumer loans, respectively. The Bank had $19.5 million and $3.7 million
<br />of commitments to lend additional funds and letters of credit to customers whose troubled debt have been
<br />restructured as of December 31, 2011 and 2010, respectively.
<br />For our commercial loan portfolio, concessions granted by the Bank generally include term
<br />extensions, renewals, forbearances of principal or interest payments and interest rate modifications for each
<br />of the classes shown below. In addition, for smaller balance nonperforming loans, we may use third party
<br />collection agencies who generally enter into payment or settlement arrangements with the borrowers in
<br />order to protect as much of the Bank's investment in the loan as possible. For our consumer loan portfolio,
<br />concessions generally include terra extensions, interest rate reductions, payment deferrals and temporary
<br />payment reductions.
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<br />2011 Bank of the West Annual Report
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