California Bank of Commerce NOTES TO FINANCIAL STATEMENTS 5.  ALLOWANCE FOR LOAN LOSSES Changes in the allowance for loan and lease losses were as follows: 32 Years Ended December 31,  2011 2010 Balance at beginning of year  $  4,327,000  $  2,565,000 Provision for loan losses  1,328,061  2,094,697 Loans charged-off  (1,504,936) (419,297) Recoveries of loans previously charged-off  24,875  86,600 Balance at end of year  $ 4,175,000  $ 4,327,000 Commercial  Real Estate  &  Construction Real Estate  Real Estate  Installment  Industrial & Land  - Other  HELOC & Other  Total Allowance for Loan Losses – December 31, 2011 Balance at beginning of year  $ 2,642,951  $  271,541  $ 1,339,190 $  47,570  $  25,748  $ 4,327,000 Provision for loan losses  625,769  (37,217) 702,608 18,396  18,505  1,328,061 Loans charged-off  (1,086,936) -  (418,000) -  -  (1,504,936) Recoveries of loans previously charged-off  13,540  -  11,335  -  -  24,875 Ending balance allocated to portfolio segments  $ 2,195,324  $ 234,324  $ 1,635,133 $ 65,966  $ 44,253  $ 4,175,000 Ending balance: individually evaluated for impairment  $ 313,000  $ -  $ 133,000 $ -  $ -  $ 446,000 Ending balance: collectively evaluated for impairment  $ 1,882,324  $ 234,324  $ 1,502,133 $ 44,253  $ 65,966  $ 3,729,000 Loans – December 31, 2011 Ending balance  $94,412,665  $ 3,761,769  $101,323,177 $ 4,067,094  $ 3,584,941  $207,149,646 Ending balance: individually evaluated for impairment  $ 3,620,286  $ -  $ 2,327,373 $ -  $ -  $ 5,947,659 Ending balance: collectively evaluated for impairment  $90,792,379  $ 3,761,769  $ 98,995,804 $ 4,067,094  $ 3,584,941  $201,201,987 Allowance for Loan Losses – December 31, 2010 Ending balance allocated to portfolio segments  $ 2,839,300  $ 253,589  $ 1,176,655 $ 34,160  $ 23,296  $ 4,327,000 Ending balance: individually evaluated for impairment  $ 724,000  $ -  $ 418,000 $ -  $ -  $ 1,142,000 Ending balance: collectively evaluated for impairment  $ 2,115,300  $ 253,589  $ 758,655 $ 34,160  $ 23,296  $ 3,185,000 Loans – December 31, 2010 Ending balance  $74,546,021  $ 6,837,451  $ 86,901,318 $ 4,598,076  $ 999,865  $173,882,731 Ending balance: individually evaluated for impairment  $ 1,306,717  $ -  $ 2,757,259 $ -  $ -  $ 4,063,976 Ending balance: collectively evaluated for impairment  $73,239,304  $ 6,837,451  $ 84,144,059 $ 4,598,076  $ 999,865  $169,818,755 The following table shows the changes in and allocation of the allowance for loan losses at December  31, 2011 and 2010 and, for the year ended December 31, 2011 by portfolio segment and by impairment  methodology: