Loans

9 Months Ended

Sep. 30, 2011

Loans [Abstract]

Loans

NOTE 3 – LOANS

The Company engages in a full complement of lending activities, including real estate-related loans, agriculture-related loans, commercial and financial loans and consumer installment loans within select markets in Georgia, Alabama, Florida and South Carolina. Ameris concentrates the majority of its lending activities in real estate loans. While risk of loss in the Company's portfolio is primarily tied to the credit quality of the various borrowers, risk of loss may increase due to factors beyond Ameris' control, such as local, regional and/or national economic downturns. General conditions in the real estate market may also impact the relative risk in the real estate portfolio.

Commercial, financial and agricultural loans include both secured and unsecured loans for working capital, expansion, crop production, and other business purposes. Short-term working capital loans are secured by non-real estate collateral such as accounts receivable, crops, inventory and equipment. The Company evaluates the financial strength, cash flow, management, credit history of the borrower and the quality of the collateral securing the loan. The Bank often requires personal guarantees and secondary sources of repayment on commercial, financial and agricultural loans.

Real estate loans include construction and development loans, commercial and farmland loans and residential loans. Construction and development loans include loans for the development of residential neighborhoods, construction of one-to-four family residential construction loans to builders and consumers, and commercial real estate construction loans, primarily for owner-occupied properties. The Company limits its construction lending risk through adherence to established underwriting procedures. Commercial real estate loans include loans secured by owner-occupied commercial buildings for office, storage, retail, farmland and warehouse space. They also include non-owner occupied commercial buildings such as leased retail and office space. Commercial real estate loans may be larger in size and may involve a greater degree of risk than one-to-four family residential mortgage loans. Payments on such loans are often dependent on successful operation or management of the properties. The Company's residential loans represent permanent mortgage financing and are secured by residential properties located within the Bank's market areas.

Consumer installment loans and other loans include automobile loans, boat and recreational vehicle financing, and both secured and unsecured personal loans. Consumer loans carry greater risks than other loans, as the collateral can consists of rapidly depreciating assets such as automobiles and equipment that may not provide an adequate source of repayment of the loan in the case of default.

Loans are stated at unpaid balances, net of unearned income and deferred loan fees. Balances within the major loans receivable categories are presented in the following table:

(Dollars in Thousands)	September 30, 2011		December 31, 2010		September 30, 2010
Commercial, financial and agricultural	$	159,020	$	142,312	$	152,812
Real estate – construction and development		145,770		162,594		178,532
Real estate – commercial and farmland		677,048		683,974		721,368
Real estate – residential		331,236		344,830		348,737
Consumer installment		38,163		34,293		54,681
Other		17,658		6,754		6,702
	$	1,368,895	$	1,374,757	$	1,462,832

Covered loans are defined as loans that were acquired in FDIC-assisted transactions that are covered by a loss-sharing agreement with the FDIC. Covered loans totaling $595.4 million, $555.0 million and $185.3 million at September 30, 2011, December 31, 2010 and September 30, 2010, respectively, are not included in the above schedule.

Covered loans are shown below according to loan type as of the end of the periods shown:

(Dollars in Thousands)	September 30, 2011		December 31, 2010		September 30, 2010
Commercial, financial and agricultural	$	49,859	$	47,309	$	16,506
Real estate – construction and development		82,933		89,781		43,047
Real estate – commercial and farmland		323,760		257,428		90,158
Real estate – residential		135,318		149,226		27,736
Consumer installment		3,558		11,247		7,841
	$	595,428	$	554,991	$	185,288

Nonaccrual and Past Due Loans

A loan is placed on nonaccrual status when, in management's judgment, the collection of the interest income appears doubtful. Interest receivable that has been accrued and is subsequently determined to have doubtful collectability is charged to interest income. Interest on loans that are classified as non-accrual is recognized when received. Past due loans are loans whose principal or interest is past due 90 days or more. In some cases, where borrowers are experiencing financial difficulties, loans may be restructured to provide terms significantly different from the original contractual terms.

The following table presents an analysis of non-covered loans accounted for on a nonaccrual basis:

(Dollars in Thousands)	September 30, 2011		December 31, 2010		September 30, 2010
Commercial, financial and agricultural	$	4,570	$	8,648	$	7,752
Real estate – construction and development		15,789		7,887		30,359
Real estate – commercial and farmland		24,450		55,170		37,086
Real estate – residential		13,529		6,376		13,752
Consumer installment		729		1,208		733
	$	59,067	$	79,289	$	89,862

The following table presents an analysis of covered loans accounted for on a nonaccrual basis:

(Dollars in Thousands)	September 30, 2011		December 31, 2010		September 30, 2010
Commercial, financial and agricultural	$	12,136	$	5,756	$	795
Real estate – construction and development		32,878		25,810		8,936
Real estate – commercial and farmland		63,940		29,519		14,706
Real estate – residential		34,846		25,946		7,852
Consumer installment		451		1,122		682
	$	144,251	$	88,153	$	32,971

The following table presents an analysis of non-covered past due loans as of September 30, 2011 and December 31, 2010:

	Loans 30-59 Days  Past Due		Loans 60-89 Days Past Due		Loans 90 or More Days Past Due		Total Loans Past Due		Current Loans		Total Loans		Loans 90 Days or More Past Due and Still Accruing
	(Dollars in Thousands)
As of September 30, 2011:
Commercial, financial & agricultural	$	657	$	884	$	4,544	$	6,085	$	152,935	$	159,020	$	—
Real estate – construction & development		1,228		1,759		15,050		18,037		127,733		145,770		—
Real estate – commercial & farmland		6,755		2,594		22,777		32,126		644,922		677,048		—
Real estate – residential		5,581		2,476		12,706		20,763		310,473		331,236		—
Consumer installment loans		475		260		661		1,396		36,767		38,163		20
Other		—		—		—		—		17,658		17,658		—
Total	$	14,696	$	7,973	$	55,738	$	78,407	$	1,290,488	$	1,368,895	$	20

	Loans 30-59 Days  Past Due		Loans 60-89 Days Past Due		Loans 90 or More Days Past Due		Total Loans Past Due		Current Loans		Total Loans		Loans 90 Days or More Past Due and Still Accruing
	(Dollars in Thousands)
As of December 31, 2010:
Commercial, financial & agricultural	$	898	$	120	$	6,746	$	7,764	$	134,548	$	142,312	$	—
Real estate – construction & development		2,121		2,039		19,458		23,618		138,976		162,594		—
Real estate – commercial & farmland		1,740		3,725		25,914		31,379		652,595		683,974		—
Real estate – residential		3,384		3,066		14,393		20,843		323,987		344,830		—
Consumer installment loans		493		142		475		1,110		33,183		34,293		3
Other		—		—		—		—		6,754		6,754		—
Total	$	8,636	$	9,092	$	66,986	$	84,714	$	1,290,043	$	1,374,757	$	3

There was no material amount of non-covered loans past due ninety days or more and still accruing interest at September 30, 2010.

The following table presents an analysis of covered past due loans as of September 30, 2011 and December 31, 2010:

	Loans 30-59 Days Past Due		Loans 60-89 Days Past Due		Loans 90 or More Days Past Due		Total Loans Past Due		Current Loans		Total Loans		Loans 90 Days  or More Past Due  and Still Accruing
	(Dollars in Thousands)
As of September 30, 2011:
Commercial, financial & agricultural	$	290	$	411	$	11,406	$	12,107	$	37,752	$	49,859	$	5
Real estate – construction & development		1,175		2,610		30,220		34,005		48,928		82,933		347
Real estate – commercial & farmland		16,316		7,790		54,009		78,115		245,645		323,760		339
Real estate – residential		8,180		2,717		32,570		43,467		91,851		135,318		2,039
Consumer installment loans		72		73		422		567		2,991		3,558		—
Other		—		—		—		—		—		—		—
Total	$	26,033	$	13,601	$	128,627	$	168,261	$	427,167	$	595,428	$	2,730

	Loans 30-59 Days Past Due		Loans 60-89 Days Past Due		Loans 90 or More Days Past Due		Total Loans Past Due		Current Loans		Total Loans		Loans 90 Days  or More Past Due and Still Accruing
	(Dollars in Thousands)
As of December 31, 2010:
Commercial, financial & agricultural	$	2,531	$	3,954	$	4,914	$	11,399	$	35,910	$	47,309	$	3,355
Real estate – construction & development		1,464		5,254		11,866		18,584		71,197		89,781		5,038
Real estate – commercial & farmland		4,834		19,628		20,979		45,441		211,987		257,428		5,712
Real estate – residential		5,186		4,135		10,277		19,598		129,628		149,226		2,145
Consumer installment loans		606		158		1,092		1,856		9,391		11,247		133
Other		—		—		—		—		—		—		—
Total	$	14,621	$	33,129	$	49,128	$	96,878	$	458,113	$	554,991	$	16,383

Impaired Loans

Loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreements. When determining if the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement, the Company considers the borrower's capacity to pay, which includes such factors as the borrower's current financial statements, an analysis of global cash flow sufficient to pay all debt obligations and an evaluation of secondary sources of repayment, such as guarantor support and collateral value. Impaired loans include loans on nonaccrual status and troubled debt restructurings. The Company individually assesses for impairment all non-accrual loans greater than $200,000 and rated substandard or worse and all troubled debt restructurings greater than $100,000. If a loan is deemed impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported net, at the present value of estimated future cash flows using the loan's existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis.

The following is a summary of information pertaining to non-covered impaired loans:

	As of and For the Period Ended
	September 30, 2011		December 31, 2010		September 30, 2010
	(Dollars in Thousands)
Nonaccrual loans	$	59,067	$	79,289	$	89,862
Troubled debt restructurings not included above		16,591		21,972		5,594
Total impaired loans	$	75,658	$	101,261	$	95,456
Impaired loans not requiring a related allowance	$	—	$	—	$	—
Impaired loans requiring a related allowance	$	75,658	$	101,261	$	95,456
Allowance related to impaired loans	$	17,010	$	16,688	$	17,509
Average investment in impaired loans	$	88,207	$	103,776	$	104,404
Interest income recognized on impaired loans	$	847	$	545	$	434
Foregone interest income on impaired loans	$	202	$	3,828	$	2,099

The following table presents an analysis of information pertaining to non-covered impaired loans as of September 30, 2011 and December 31, 2010:

	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(Dollars in Thousands)
As of September 30, 2011:
Commercial, financial & agricultural	$	8,895	$	—	$	4,571	$	4,571	$	1,277	$	5,848
Real estate – construction & development		26,450		—		17,486		17,486		6,164		19,417
Real estate – commercial & farmland		35,835		—		31,455		31,455		4,470		41,488
Real estate – residential		23,871		—		21,436		21,436		4,933		20,837
Consumer installment loans		875		—		710		710		166		617
Total	$	95,926	$	—	$	75,658	$	75,658	$	17,010	$	88,207

	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(Dollars in Thousands)
As of December 31, 2010:
Commercial, financial & agricultural	$	9,983	$	—	$	6,985	$	6,985	$	1,649	$	6,845
Real estate – construction & development		38,060		—		23,485		23,485		4,023		35,315
Real estate – commercial & farmland		57,224		—		50,626		50,626		6,795		40,475
Real estate – residential		22,819		—		19,632		19,632		4,085		20,401
Consumer installment loans		738		—		533		533		136		740
Total	$	128,824	$	—	$	101,261	$	101,261	$	16,688	$	103,776

The following is a summary of information pertaining to covered impaired loans:

	As of and For the Period Ended
	September 30, 2011		December 31, 2010		September 30, 2010
	(Dollars in Thousands)
Nonaccrual loans	$	144,251	$	88,153	$	32,971
Troubled debt restructurings not included above		10,768		169		15
Total impaired loans	$	155,019	$	88,322	$	32,986
Impaired loans not requiring a related allowance	$	155,019	$	88,322	$	32,986
Impaired loans requiring a related allowance	$	—	$	—	$	—
Allowance related to impaired loans	$	—	$	—	$	—
Average investment in impaired loans	$	128,717	$	44,184	$	29,471
Interest income recognized on impaired loans	$	462	$	6	$	—
Foregone interest income on impaired loans	$	1,515	$	1,251	$	1,212

The following table presents an analysis of information pertaining to covered impaired loans as of September 30, 2011 and December 31, 2010:

	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(Dollars in Thousands)
As of September 30, 2011:
Commercial, financial & agricultural	$	19,904	$	12,194	$	—	$	12,194	$	—	$	9,756
Real estate – construction & development		111,148		33,380		—		33,380		—		29,672
Real estate – commercial & farmland		135,514		65,592		—		65,592		—		49,573
Real estate – residential		72,962		43,402		—		43,402		—		38,775
Consumer installment loans		581		451		—		451		—		941
Total	$	340,109	$	155,019	$	—	$	155,019	$	—	$	128,717

	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(Dollars in Thousands)
As of December 31, 2010:
Commercial, financial & agricultural	$	10,974	$	5,756	$	—	$	5,756	$	—	$	2,025
Real estate – construction & development		64,904		25,810		—		25,810		—		12,071
Real estate – commercial & farmland		49,381		29,519		—		29,519		—		17,717
Real estate – residential		48,148		26,115		—		26,115		—		11,579
Consumer installment loans		1,268		1,122		—		1,122		—		792
Total	$	174,675	$	88,322	$	—	$	88,322	$	—	$	44,184

Credit Quality Indicators

The Company uses a nine category risk grading system to assign a risk grade to each loan in the portfolio. The following is a description of the general characteristics of the grades:

Grade 10 – Prime Credit – This grade represents loans to the Company's most creditworthy borrowers or loans that are secured by cash or cash equivalents.

Grade 15 – Good Credit – This grade includes loans that exhibit one or more characteristics better than that of a Satisfactory Credit. Generally, debt service coverage and borrower's liquidity is materially better than required by the Company's loan policy.

Grade 20 – Satisfactory Credit – This grade is assigned to loans to borrowers who exhibit satisfactory credit histories, contain acceptable loan structures and demonstrate ability to repay.

Grade 25 – Minimum Acceptable Credit – This grade includes loans which exhibit all the characteristics of a Satisfactory Credit, but warrant more than normal level of banker supervision due to: (i) circumstances which elevate the risks of performance (such as start-up operations, untested management, heavy leverage, interim losses); (ii) adverse, extraordinary events that have affected, or could affect, the borrower's cash flow, financial condition, ability to continue operating profitability or refinancing (such as death of principal, fire, divorce); (iii) loans that require more than the normal servicing requirements (such as any type of construction financing, acquisition and development loans, accounts receivable or inventory loans and floor plan loans); (iv) existing technical exceptions which raise some doubts about the Bank's perfection in its collateral position or the continued financial capacity of the borrower; or (v) improvements in formerly criticized borrowers, which may warrant banker supervision.

Grade 28 – Performing, Under-Collateralized Credit – This grade is assigned to loans that are currently performing and supported by adequate financial information that reflects repayment capacity but exhibits a loan-to-value ratio greater than 110%, based on a documented collateral valuation.

Grade 30 – Other Asset Especially Mentioned – This grade includes loans that exhibit potential weaknesses that deserve management's close attention. If left uncorrected, these weaknesses may result in deterioration of the repayment prospects for the asset or in the Company's credit position at some future date.

Grade 40 – Substandard – This grade represents loans which are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. These assets exhibit a well-defined weakness or are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. These weaknesses may be characterized by past due performance, operating losses or questionable collateral values.

Grade 50 – Doubtful – This grade includes loans which exhibit all of the characteristics of a substandard loan with the added provision that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable or improbable.

Grade 60 – Loss – This grade is assigned to loans which are considered uncollectible and of such little value that their continuance as active assets of the Bank is not warranted. This classification does not mean that the loss has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing it off.

The following table presents the non-covered loan portfolio by risk grade as of September 30, 2011:

Risk Grade	Commercial, financial & agricultural		Real estate - construction & development		Real estate - commercial  & farmland		Real estate  - residential		Consumer installment  loans		Other		Total
	(Dollars in Thousands)
10	$	16,047	$	211	$	905	$	109	$	6,189	$	—	$	23,461
15		12,135		4,814		146,029		29,930		973		—		193,881
20		67,085		35,764		277,651		130,731		21,859		17,658		550,748
25		55,307		69,618		169,887		122,939		7,391		—		425,142
28		1,192		8,043		9,290		11,985		28		—		30,538
30		1,738		4,291		35,550		10,583		598		—		52,760
40		5,376		22,753		37,736		24,959		1,033		—		91,857
50		140		276		—		—		92		—		508
60		—		—		—		—		—		—		—
Total	$	159,020	$	145,770	$	677,048	$	331,236	$	38,163	$	17,658	$	1,368,895

The following table presents the non-covered loan portfolio by risk grade as of December 31, 2010:

Risk Grade	Commercial, financial  & agricultural		Real estate  - construction & development		Real estate - commercial  & farmland		Real estate  - residential		Consumer installment  loans		Other		Total
	(Dollars in Thousands)
10	$	17,739	$	211	$	1,109	$	110	$	5,507	$	—	$	24,676
15		11,191		3,006		145,376		40,783		858		—		201,214
20		48,738		39,407		274,817		118,179		18,566		6,754		506,461
25		53,957		73,589		168,273		137,416		8,261		—		441,496
28		2,246		7,696		9,159		6,197		31		—		25,329
30		998		6,437		29,029		17,069		273		—		53,806
40		6,633		32,009		56,090		25,076		791		—		120,599
50		810		239		120		—		6		—		1,175
60		—		—		1		—		—		—		1
Total	$	142,312	$	162,594	$	683,974	$	344,830	$	34,293	$	6,754	$	1,374,757

The following table presents the covered loan portfolio by risk grade as of September 30, 2011:

Risk Grade	Commercial, financial  & agricultural		Real estate  - construction & development		Real estate - commercial  & farmland		Real estate  - residential		Consumer installment  loans		Other		Total
	(Dollars in Thousands)
10	$	587	$	—	$	—	$	1,376	$	578	$	—	$	2,541
15		31		53		1,799		633		16		—		2,532
20		4,602		5,615		31,938		20,911		557		—		63,623
25		22,142		22,664		141,921		51,260		1,386		—		239,373
28		—		54		1,478		690		—		—		2,222
30		5,810		12,831		41,679		8,705		198		—		69,223
40		16,683		40,571		104,008		51,743		823		—		213,828
50		4		1,145		937		—		—		—		2,086
60		—		—		—		—		—		—		—
Total	$	49,859	$	82,933	$	323,760	$	135,318	$	3,558	$	—	$	595,428

The following table presents the covered loan portfolio by risk grade as of December 31, 2010:

Risk Grade	Commercial, financial  & agricultural		Real estate  - construction & development		Real estate - commercial  & farmland		Real estate  - residential		Consumer installment  loans		Other		Total
	(Dollars in Thousands)
10	$	1,297	$	—	$	—	$	—	$	1,241	$	—	$	2,538
15		124		—		—		—		35		—		159
20		957		4,245		15,961		5,861		1,865		—		28,889
25		30,333		28,918		130,540		78,665		6,231		—		274,687
28		—		—		—		—		—		—		—
30		3,099		7,690		38,275		22,385		396		—		71,845
40		11,495		48,928		72,652		42,233		1,479		—		176,787
50		4		—		—		82		—		—		86
60		—		—		—		—		—		—		—
Total	$	47,309	$	89,781	$	257,428	$	149,226	$	11,247	$	—	$	554,991

Troubled Debt Restructurings

The restructuring of a loan is considered a "troubled debt restructuring" if both (i) the borrower is experiencing financial difficulties and (ii) the Company has granted a concession that it would not otherwise consider. Concessions may include interest rate reductions to below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. The Company has exhibited the greatest success for rehabilitation of the loan by a reduction in the rate alone (maintaining the amortization of the debt) or a combination of a rate reduction and the forbearance of previously past due interest or principal. This has most typically been evidenced in certain commercial real estate loans whereby a disruption in the borrower's cash flow resulted in an extended past due status, of which the borrower was unable to catch up completely as the cash flow of the property ultimately stabilized at a level lower than its original level. A reduction in rate, coupled with a forbearance of unpaid principal and/or interest, allowed the net cash flows to service the debt under the modified terms.

The Company's policy requires a restructure request to be supported by a current, well-documented credit evaluation of the borrower's financial condition and a collateral evaluation that is no older than six-months from the date of the restructure. Key factors of that evaluation include the documentation of current, recurring cash flows, support provided by the guarantor(s) and the current valuation of the collateral. If the appraisal in file is older than six-months, an evaluation must be made as to the continued reasonableness of the valuation. For certain income-producing properties, current rent rolls and/or other income information can be utilized to support the appraisal valuation, when coupled with documented cap rates within our markets and a physical inspection of the collateral to validate the current condition.

The Company's policy states in the event a loan has been identified as a troubled debt restructuring, it should be assigned a grade of substandard and placed on nonaccrual status until such time that the borrower has demonstrated the ability to service the loan payments based on the restructured terms – generally defined as six-months of satisfactory payment history. Missed payments under the original loan terms are not considered under the new structure; however, subsequent missed payments are considered non-performance and are not considered toward the six-month required term of satisfactory payment history. The Company's loan policy states that a nonaccrual loan may be returned to accrual status when (i) none of its principal and interest is due and unpaid, and the Company expects repayment of the remaining contractual principal and interest, or (ii) when it otherwise becomes well secured and in the process of collection. Restoration to accrual status on any given loan must be supported by a well-documented credit evaluation of the borrower's financial condition and the prospects for full repayment, approved by the Company's Senior Credit Officer.

In the normal course of business, the Company renews loans with a modification of the interest rate or terms that are not deemed as troubled debt restructurings because the borrower is not experiencing financial difficulty. The Company modified loans in the first nine months of 2011 totaling $27.0 million and loans in 2010 totaling $23.8 million under such parameters. In addition, the Company offers consumer loan customers an annual skip-a-pay program that is based on certain qualifying parameters and not based on financial difficulties. The Company does not treat these as troubled debt restructurings.

The following table presents the amount of troubled debt restructurings by loan class, classified separately as accrual and non-accrual at September 30, 2011 and December 31, 2010.

As of September 30, 2011	Accruing Loans				Non-Accruing Loans
Loan class:	#		Balance (in thousands)		#		Balance (in thousands)
Real estate – construction & development		5		1,697		4		1,426
Real estate – commercial & farmland		10		7,005		3		5,392
Real estate - residential		23		7,889		1		227
Total		38	$	16,591		8	$	7,045

As of December 31, 2010	Accruing Loans				Non-Accruing Loans
Loan class:	#		Balance (in thousands)		#		Balance (in thousands)
Real estate – construction & development		2		786		2		2,290
Real estate – commercial & farmland		15		19,262		3		2,864
Real estate - residential		9		1,924		1		316
Total		26	$	21,972		6	$	5,470

The following table presents the amount of troubled debt restructurings by types of concessions made, classified separately as accrual and non-accrual at September 30, 2011 and December 31, 2010.

As of September 30, 2011	Accruing Loans				Non-Accruing Loans
Type of Concession:	#		Balance (in thousands)		#		Balance (in thousands)
Forbearance of Interest		1	$	316		—	$	—
Forgiveness of Principal		2		889		1		136
Payment Modification Only		2		399		—		—
Rate Reduction Only		11		6,027		2		690
Rate Reduction, Forbearance of Interest		9		7,360		—		—
Rate Reduction, Forbearance of Principal		13		1,600		—		—
Rate Reduction, Payment Modification		—		—		5		6,219
Total		38	$	16,591		8	$	7,045

As of December 31, 2010	Accruing Loans				Non-Accruing Loans
Type of Concession:	#		Balance (in thousands)		#		Balance (in thousands)
Forbearance of Interest		—	$	—		2	$	722
Forgiveness of Principal		4		1,145		—		—
Payment Modification Only		3		232		—		—
Rate Reduction Only		5		5,985		—		—
Rate Reduction, Forbearance of Interest		7		6,207		1		1,615
Rate Reduction, Forbearance of Principal		1		596		—		—
Rate Reduction, Payment Modification		6		7,807		3		3,133
Total		26	$	21,972		6	$	5,470

The following table presents the amount of troubled debt restructurings by collateral types, classified separately as accrual and non-accrual at September 30, 2011 and December 31, 2010.

As of September 30, 2011	Accruing Loans				Non-Accruing Loans
Collateral type:	#		Balance (in thousands)		#		Balance (in thousands)
Apartments		—	$	—		—	$	—
Raw Land		5		1,697		4		1,426
Hotel & Motel		1		518		1		2,072
Office		3		1,006		—		—
Retail, including Strip Centers		6		5,481		2		3,320
1-4 Family Residential		23		7,889		1		227
Total		38	$	16,591		8	$	7,045

As of December 31, 2010	Accruing Loans				Non-Accruing Loans
Collateral type:	#		Balance (in thousands)		#		Balance (in thousands)
Apartments		3	$	3,770		—	$	—
Raw Land		6		2,429		2		2,290
Hotel & Motel		2		4,199		1		2,072
Office		—		—		2		792
Retail, including Strip Centers		6		9,650		—		—
1-4 Family Residential		9		1,924		1		316
Total		26	$	21,972		6	$	5,470

As of September 30, 2011 and December 31, 2010, the Company had a balance of $23.6 million and $27.4 million, respectively, in troubled debt restructurings. The Company has recorded $1.3 million and $2.6 million in previous charge-offs on such loans at September 30, 2011 and December 31, 2010, respectively. The Company's balance in the allowance for loan losses allocated to such troubled debt restructurings was $3.5 million and $3.3 million at September 30, 2011 and December 31, 2010, respectively.

Allowance for Loan Losses

The allowance for loan losses represents a reserve for inherent losses in the loan portfolio. The adequacy of the allowance for loan losses is evaluated periodically based on a review of all significant loans, with a particular emphasis on non-accruing, past due and other loans that management believes might be potentially impaired or warrant additional attention. The Company segregates the loan portfolio by type of loan and utilizes this segregation in evaluating exposure to risks within the portfolio. In addition, based on internal reviews and external reviews performed by independent auditors and regulatory authorities, the Company further segregates the loan portfolio by loan grades based on an assessment of risk for a particular loan or group of loans. Certain reviewed loans are assigned specific allowances when a review of relevant data determines that a general allocation is not sufficient. In establishing allowances, management considers historical loan loss experience but adjusts this data with a significant emphasis on data such as current loan quality trends, current economic conditions and other factors in the markets where the Company operates. Factors considered include, among others, current valuations of real estate in their markets, unemployment rates, the effect of weather conditions on agricultural related entities and other significant local economic events.

The Company has developed a methodology for determining the adequacy of the allowance for loan losses which is monitored by the Company's Senior Credit Officer. Procedures provide for the assignment of a risk rating for every loan included in the total loan portfolio, with the exception of credit card receivables and overdraft protection loans which are treated as pools for risk rating purposes. The risk rating schedule provides nine ratings of which five ratings are classified as pass ratings and four ratings are classified as criticized ratings. Each risk rating is assigned a percentage factor to be applied to the loan balance to determine the adequate amount of reserve. Many of the larger loans require an annual review by an independent loan officer or an independent third party loan review firm. As a result of these loan reviews, certain loans may be assigned specific reserve allocations. Other loans that surface as problem loans may also be assigned specific reserves. Past due loans are assigned risk ratings based on the number of days past due. The calculation of the allowance for loan losses, including underlying data and assumptions, is reviewed regularly by the Company's Chief Financial Officer and the Director of Internal Audit.

Loan losses are charged against the allowance when management believes the collection of a loan's principal is unlikely. Subsequent recoveries are credited to the allowance. Consumer loans are charged-off in accordance with the Federal Financial Institutions Examination Council's ("FFIEC") Uniform Retail Credit Classification and Account Management Policy. Commercial loans are charged-off when they are deemed uncollectible, which usually involves a triggering event within the collection effort. If the loan is collateral dependent, the loss is more easily identified and is charged-off when it is identified, usually based upon receipt of an appraisal. However, when a loan has guarantor support, the Company may carry the estimated loss as a reserve against the loan while collection efforts with the guarantor are pursued. If, after collection efforts with the guarantor are complete, the deficiency is still considered uncollectible, the loss is charged-off and any further collections are treated as recoveries. In all situations, when a loan is downgraded to an Asset Quality Rating of 60 (Loss per the regulatory guidance), the uncollectible portion is charged-off.

Activity in the allowance for loan losses for the nine months ended September 30, 2011, for the year ended December 31, 2010 and for the nine months ended September 30, 2010 is as follows:

(Dollars in Thousands)	September 30, 2011			December 31, 2010			September 30, 2010
Balance, January 1	$	34,576		$	35,762		$	35,762
Provision for loan losses charged to expense		22,098			48,839			39,117
Loans charged off		(22,714	)		(52,623	)		(43,130	)
Recoveries of loans previously charged off		1,278			2,598			2,323
Ending balance	$	35,238		$	34,576		$	34,072

During the nine months ended September 30, 2011, the year ended December 31, 2010, and the nine months ended September 30, 2010, the Company recorded provision for loan loss expense of $1.6 million, $1.7 million, and $1.0 million respectively, to account for losses where the initial estimate of cash flows was found to be excessive on loans acquired in FDIC-assisted transactions. These amounts are excluded from the rollforwards above and below but are reflected in the Company's Consolidated Statements of Operations.

The following table details activity in the allowance for loan losses by portfolio segment for the nine months ended September 30, 2011 and the year ended December 31, 2010. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

	Commercial, financial  & agricultural			Real estate  - construction & development			Real estate - commercial  & farmland			Real estate  - residential			Consumer installment loans and Other			Total
	(Dollars in thousands)
Balance, January 1, 2011	$	2,779		$	7,705		$	14,971		$	8,664		$	457		$	34,576
Provision for loan losses		3,586			7,615			6,447			3,931			519			22,098
Loans charged off		(3,855	)		(6,859	)		(7,851	)		(3,641	)		(508	)		(22,714	)
Recoveries of loans previously charged off		153			873			43			107			102			1,278
Balance, September 30, 2011	$	2,663		$	9,334		$	13,610		$	9,061		$	570		$	35,238
Period-end amount allocated to:
Loans individually evaluated for impairment	$	903		$	5,209		$	4,580		$	3,332		$	1		$	14,025
Loans collectively evaluated for impairment		1,760			4,125			9,030			5,729			569			21,213
Ending balance	$	2,663		$	9,334		$	13,610		$	9,061		$	570		$	35,238
Loans:
Individually evaluated for impairment	$	3,214		$	13,979		$	31,892		$	15,468		$	17		$	64,570
Collectively evaluated for impairment		155,806			131,791			645,156			315,768			55,804			1,304,325
Ending balance	$	159,020		$	145,770		$	677,048		$	331,236		$	55,821		$	1,368,895

	Commercial, financial  & agricultural			Real estate  - construction & development			Real estate - commercial  & farmland			Real estate  - residential			Consumer installment loans and Other			Total
	(Dollars in thousands)
Balance, January 1, 2010	$	3,428		$	13,098		$	11,296		$	7,391		$	549		$	35,762
Provision for loan losses		4,265			13,776			18,937			11,178			683			48,839
Loans charged off		(5,481	)		(19,853	)		(16,108	)		(10,091	)		(1,090	)		(52,623	)
Recoveries of loans previously charged off		567			684			846			186			315			2,598
Balance, December 31, 2010	$	2,779		$	7,705		$	14,971		$	8,664		$	457		$	34,576
Period-end amount allocated to:
Loans individually evaluated for impairment	$	677		$	3,554		$	6,300		$	2,554		$	—		$	13,085
Loans collectively evaluated for impairment		2,102			4,151			8,671			6,110			457			21,491
Ending balance	$	2,779		$	7,705		$	14,971		$	8,664		$	457		$	34,576
Loans:
Individually evaluated for impairment	$	3,930		$	22,838		$	50,179		$	14,740		$	—		$	91,687
Collectively evaluated for impairment		138,382			139,756			633,795			330,090			41,047			1,283,070
Ending balance	$	142,312		$	162,594		$	683,974		$	344,830		$	41,047		$	1,374,757