LOANS AND ALLOWANCE FOR LOAN LOSSES

9 Months Ended

Sep. 30, 2011

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

NOTE 4–LOANS AND ALLOWANCE FOR LOAN LOSSES

The following table summarizes the composition of the loan portfolio at September 30, 2011 and December 31, 2010:

	September 30,		December 31,
	2011		2010
	(dollars expressed in thousands)
Commercial, financial and agricultural	$	768,047	1,045,832
Real estate construction and development		303,263	490,766
Real estate mortgage:
One-to-four family residential		920,624	1,050,895
Multi-family residential		128,144	178,289
Commercial real estate		1,320,905	1,642,920
Consumer and installment		25,206	33,623
Loans held for sale		36,595	54,470
Deferred loan costs (fees)		7	(4,511	)
Loans, net of deferred loan costs (fees)	$	3,502,791	4,492,284

Aging of Loans. The following table presents the aging of loans by loan classification at September 30, 2011 and December 31, 2010:

								Recorded
								Investment
	30-59		60-89	90 Days and	Total Past			> 90 Days
	Days		Days	Over	Due	Current	Total Loans	Accruing
	(dollars expressed in thousands)
September 30, 2011:
Commercial, financial and
agricultural	$	1,831	1,842	71,505	75,178	692,869	768,047	470
Real estate construction and
development		562	—	83,632	84,194	219,069	303,263	1,922
One-to-four-family residential:
Bank portfolio		5,812	3,017	16,608	25,437	151,929	177,366	930
Mortgage Division portfolio		5,766	3,916	19,327	29,009	336,270	365,279	—
Home equity		4,031	1,196	8,857	14,084	363,895	377,979	685
Multi-family residential		437	9	7,595	8,041	120,103	128,144	—
Commercial real estate		4,340	3,123	66,967	74,430	1,246,475	1,320,905	47
Consumer and installment		259	117	48	424	24,789	25,213	—
Loan held for sale		—	—	—	—	36,595	36,595	—
Total	$	23,038	13,220	274,539	310,797	3,191,994	3,502,791	4,054
December 31, 2010:
Commercial, financial and
agricultural	$	5,574	7,286	68,274	81,134	964,698	1,045,832	909
Real estate construction and
development		1,523	10,816	137,176	149,515	341,251	490,766	2,932
One-to-four-family residential:
Bank portfolio		5,157	2,296	14,845	22,298	217,065	239,363	366
Mortgage Division portfolio		9,998	4,968	33,386	48,352	363,601	411,953	—
Home equity		5,373	1,658	8,438	15,469	384,110	399,579	1,316
Multi-family residential		16,279	1,670	12,960	30,909	147,380	178,289	—
Commercial real estate		9,391	15,252	129,187	153,830	1,489,090	1,642,920	—
Consumer and installment		515	265	165	945	28,167	29,112	—
Loan held for sale		—	—	—	—	54,470	54,470	—
Total	$	53,810	44,211	404,431	502,452	3,989,832	4,492,284	5,523

Under the Company’s loan policy, loans are placed on nonaccrual status once principal or interest payments become 90 days past due. However, individual loan officers may submit written requests for approval to continue the accrual of interest on loans that become 90 days past due. These requests may be submitted for approval consistent with the authority levels provided in the Company’s credit approval policies, and they are only granted if an expected near term future event, such as a pending renewal or expected payoff, exists at the time the loan becomes 90 days past due. If the expected near term future event does not occur as anticipated, the loan is then placed on nonaccrual status. At September 30, 2011 and December 31, 2010, the Company had $4.1 million and $5.5 million, respectively, of loans past due 90 days or more and still accruing interest.

Credit Quality Indicators. The Company’s credit management policies and procedures focus on identifying, measuring and controlling credit exposure. These procedures employ a lender-initiated system of rating credits, which is ratified in the loan approval process and subsequently tested in internal credit reviews, external audits and regulatory bank examinations. The system requires the rating of all loans at the time they are originated or acquired, except for homogeneous categories of loans, such as residential real estate mortgage loans and consumer loans. These homogeneous loans are assigned an initial rating based on the Company’s experience with each type of loan. The Company adjusts the ratings of the homogeneous loans based on payment experience subsequent to their origination.

The Company includes adversely rated credits, including loans requiring close monitoring that would not normally be considered classified credits by the Company’s regulators, on its monthly loan watch list. Loans may be added to the Company’s watch list for reasons that are temporary and correctable, such as the absence of current financial statements of the borrower or a deficiency in loan documentation. Loans may also be added to the Company’s watch list whenever any adverse circumstance is detected which might affect the borrower’s ability to comply with the contractual terms of the loan. The delinquency of a scheduled loan payment, deterioration in the borrower’s financial condition identified in a review of periodic financial statements, a decrease in the value of the collateral securing the loan, or a change in the economic environment within which the borrower operates could initiate the addition of a loan to the Company’s watch list. Loans on the Company’s watch list require periodic detailed loan status reports prepared by the responsible officer which are discussed in formal meetings with credit review and credit administration staff members. Upgrades and downgrades of loan risk ratings may be initiated by the responsible loan officer. However, upgrades of risk ratings associated with significant credit relationships and/or problem credit relationships may only be made with the concurrence of appropriate regional or senior regional credit officers.

Under the Company’s risk rating system, special mention loans are those loans that do not currently expose the Company to sufficient risk to warrant classification as substandard, troubled debt restructuring (TDR) or nonaccrual, but possess weaknesses that deserve management’s close attention. Substandard loans include those loans characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. A loan is classified as a TDR when a borrower is experiencing financial difficulties that lead to the restructuring of a loan, and the Company grants concessions to the borrower in the restructuring that it would not otherwise consider. Loans classified as TDRs which are accruing interest are classified as performing TDRs. Loans classified as TDRs which are not accruing interest are classified as nonperforming TDRs and included with all other nonaccrual loans for presentation purposes. Loans classified as nonaccrual have all the weaknesses inherent in those loans classified as substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans.

The following table presents the credit exposure of the commercial loan portfolio by internally assigned credit grade as of September 30, 2011 and December 31, 2010:

			Real Estate
			Construction
	Commercial		and		Commercial
	and Industrial		Development	Multi-family	Real Estate	Total
	(dollars expressed in thousands)
September 30, 2011:
Pass	$	612,076	79,773	66,864	1,026,115	1,784,828
Special mention		38,272	16,304	20,153	141,956	216,685
Substandard		42,145	122,332	30,344	83,213	278,034
Performing troubled debt restructuring		4,519	3,144	3,188	2,701	13,552
Nonaccrual		71,035	81,710	7,595	66,920	227,260
	$	768,047	303,263	128,144	1,320,905	2,520,359
December 31, 2010:
Pass	$	829,820	151,686	112,369	1,285,902	2,379,777
Special mention		48,264	73,464	47,376	113,469	282,573
Substandard		100,383	128,227	5,584	95,933	330,127
Performing troubled debt restructuring		—	3,145	—	18,429	21,574
Nonaccrual		67,365	134,244	12,960	129,187	343,756
	$	1,045,832	490,766	178,289	1,642,920	3,357,807

The following table presents the credit exposure of the one-to-four family residential mortgage Bank portfolio and home equity portfolio by internally assigned credit grade as of September 30, 2011 and December 31, 2010:

	Bank		Home
	Portfolio		Equity	Total
	(dollars expressed in thousands)
September 30, 2011:
Pass	$	140,307	367,372	507,679
Special mention		10,566	685	11,251
Substandard		10,815	1,750	12,565
Nonaccrual		15,678	8,172	23,850
	$	177,366	377,979	555,345
December 31, 2010:
Pass	$	175,947	389,566	565,513
Special mention		17,358	1,316	18,674
Substandard		31,579	1,575	33,154
Nonaccrual		14,479	7,122	21,601
	$	239,363	399,579	638,942

The following table presents the credit exposure of the one-to-four family residential Mortgage Division portfolio and consumer and installment portfolio by payment activity as of September 30, 2011 and December 31, 2010:

	Mortgage		Consumer
	Division		and
	Portfolio		Installment	Total
	(dollars expressed in thousands)
September 30, 2011:
Pass	$	257,412	25,165	282,577
Substandard		7,192	—	7,192
Performing troubled debt restructuring		81,348	—	81,348
Nonaccrual		19,327	48	19,375
	$	365,279	25,213	390,492
December 31, 2010:
Pass	$	277,379	28,947	306,326
Substandard		9,859	—	9,859
Performing troubled debt restructuring		91,329	—	91,329
Nonaccrual		33,386	165	33,551
	$	411,953	29,112	441,065

Impaired Loans. Loans deemed to be impaired include TDRs and nonaccrual loans. Impaired loans with outstanding balances equal to or greater than $500,000 are evaluated individually for impairment. For these loans, the Company measures the level of impairment based on the present value of the estimated projected cash flows or the estimated value of the collateral. If the current valuation is lower than the current book balance of the loan, the negative difference is evaluated for possible charge-off. In instances where management determines that a charge-off is not appropriate, a specific reserve is established for the individual loan in question. This specific reserve is included as a part of the overall allowance for loan losses.

The following tables present the recorded investment, unpaid principal balance, related allowance for loan losses, average recorded investment and interest income recognized while on impaired status for impaired loans without a related allowance for loan losses and for impaired loans with a related allowance for loan losses by loan classification at September 30, 2011 and December 31, 2010:

			Unpaid	Related	Average	Interest
	Recorded		Principal	Allowance for	Recorded	Income
	Investment		Balance	Loan Losses	Investment	Recognized
	(dollars expressed in thousands)
September 30, 2011:
With No Related Allowance Recorded:
Commercial, financial and agricultural	$	15,622	25,469	—	15,932	268
Real estate construction and development		47,891	53,038	—	63,624	90
Real estate mortgage:
Bank portfolio		5,765	5,821	—	5,436	—
Mortgage Division portfolio		11,707	25,136	—	13,113	—
Home equity portfolio		—	—	—	—	—
Multi-family residential		4,399	4,449	—	4,829	48
Commercial real estate		22,880	28,266	—	32,708	87
Consumer and installment		—	—	—	—	—
		108,264	142,179	—	135,642	493
With A Related Allowance Recorded:
Commercial, financial and agricultural		59,932	98,008	9,338	61,123	—
Real estate construction and development		36,963	57,429	4,996	49,106	53
Real estate mortgage:
Bank portfolio		9,913	10,844	555	9,346	—
Mortgage Division portfolio		88,968	98,039	14,887	99,649	1,885
Home equity portfolio		8,172	8,612	1,634	7,543	—
Multi-family residential		6,384	6,535	581	7,007	—
Commercial real estate		46,741	48,591	6,510	66,819	173
Consumer and installment		48	47	7	72	—
		257,121	328,105	38,508	300,665	2,111
Total:
Commercial, financial and agricultural		75,554	123,477	9,338	77,055	268
Real estate construction and development		84,854	110,467	4,996	112,730	143
Real estate mortgage:
Bank portfolio		15,678	16,665	555	14,782	—
Mortgage Division portfolio		100,675	123,175	14,887	112,762	1,885
Home equity portfolio		8,172	8,612	1,634	7,543	—
Multi-family residential		10,783	10,984	581	11,836	48
Commercial real estate		69,621	76,857	6,510	99,527	260
Consumer and installment		48	47	7	72	—
	$	365,385	470,284	38,508	436,307	2,604
			Unpaid	Related	Average	Interest
	Recorded		Principal	Allowance for	Recorded	Income
	Investment		Balance	Loan Losses	Investment	Recognized
	(dollars expressed in thousands)
December 31, 2010:
With No Related Allowance Recorded:
Commercial, financial and agricultural	$	9,777	29,258	—	9,244	246
Real estate construction and development		40,527	40,997	—	79,408	38
Real estate mortgage:
Bank portfolio		4,141	4,324	—	4,088	—
Mortgage Division portfolio		15,469	34,113	—	15,536	—
Home equity portfolio		—	—	—	—	—
Multi-family residential		5,555	5,702	—	4,833	—
Commercial real estate		54,317	56,983	—	47,881	1,249
Consumer and installment		—	—	—	—	—
		129,786	171,377	—	160,990	1,533
With A Related Allowance Recorded:
Commercial, financial and agricultural		57,588	70,668	6,617	54,448	21
Real estate construction and development		96,862	187,568	10,605	189,790	695
Real estate mortgage:
Bank portfolio		10,338	12,550	372	10,204	—
Mortgage Division portfolio		109,246	117,075	16,746	109,721	3,697
Home equity portfolio		7,122	7,601	1,155	5,302	—
Multi-family residential		7,405	12,349	1,024	6,443	—
Commercial real estate		93,299	120,311	14,329	82,244	—
Consumer and installment		165	165	55	290	—
		382,025	528,287	50,903	458,442	4,413
Total:
Commercial, financial and agricultural		67,365	99,926	6,617	63,692	267
Real estate construction and development		137,389	228,565	10,605	269,198	733
Real estate mortgage:
Bank portfolio		14,479	16,874	372	14,292	—
Mortgage Division portfolio		124,715	151,188	16,746	125,257	3,697
Home equity portfolio		7,122	7,601	1,155	5,302	—
Multi-family residential		12,960	18,051	1,024	11,276	—
Commercial real estate		147,616	177,294	14,329	130,125	1,249
Consumer and installment		165	165	55	290	—
	$	511,811	699,664	50,903	619,432	5,946

Recorded investment represents the Company’s investment in its impaired loans reduced by any charge-offs recorded against the allowance for loan losses on these same loans. At September 30, 2011 and December 31, 2010, the Company had recorded charge-offs of $104.9 million and $187.9 million, respectively, on its impaired loans, representing the difference between the unpaid principal balance and the recorded investment reflected in the table above. The unpaid principal balance represents the principal amount contractually owed to the Company by the borrowers on the impaired loans.

Impaired Loans Acquired in Acquisitions. The outstanding balance and carrying amount of impaired loans acquired in acquisitions was $1.4 million and $314,000, respectively, at December 31, 2010, and $3.0 million and $672,000, respectively, at September 30, 2010. There were no outstanding impaired loans acquired in acquisitions at September 30, 2011 and there were no impaired loans acquired during the three and nine months ended September 30, 2011 and 2010. As the loans were classified as nonaccrual loans, there was no accretable yield related to these loans at December 31, 2010. Changes in the carrying amount of impaired loans acquired in acquisitions for the three and nine months ended September 30, 2011 and 2010 were as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2011			2010		2011		2010
	(dollars expressed in thousands)
Balance, beginning of period	$	94		940		314		1,945
Transfers to other real estate		—		(147	)	(49	)	(517	)
Loans charged-off		(33	)	(159	)	(62	)	(716	)
Payments and settlements		(61	)	38		(203	)	(40	)
Balance, end of period	$	—		672		—		672

Troubled debt restructurings. In the ordinary course of business, the Company modifies loan terms across loan types, including both consumer and commercial loans, for a variety of reasons. Modifications to consumer loans may include, but are not limited to, changes in interest rate, maturity, amortization and financial covenants. In the original underwriting, loan terms are established that represent the then current and projected financial condition of the borrower. Over any period of time, modifications to these loan terms may be required due to changes in the original underwriting assumptions. These changes may include the financial requirements of the borrower as well as underwriting standards. If the modified terms are consistent with competitive market conditions and representative of terms the borrower could otherwise obtain in the open market, the modified loan is not categorized as a TDR.

Loan modifications are generally performed at the request of the individual borrower and may include reduction in interest rates, changes in payments and maturity date extensions. Although the Company does not have formal, standardized loan modification programs for its commercial or consumer loan portfolios, it participates in the U.S. Department of the Treasury’s (U.S. Treasury) Home Affordable Modification Program (HAMP). HAMP gives qualifying homeowners an opportunity to refinance into more affordable monthly payments, with the U.S. Treasury compensating the Company for a portion of the reduction in monthly amounts due from borrowers participating in this program. At September 30, 2011 and December 31, 2010, the Company had $73.4 million and $64.2 million, respectively, of modified loans in HAMP.

For a loan modification to be classified as a TDR, all of the following conditions must be present: (1) the borrower is experiencing financial difficulty, (2) the Company makes a concession to the original contractual loan terms and (3) the Company would not consider the concessions but for economic or legal reasons related to the borrower’s financial difficulty. Modifications of loan terms to borrowers experiencing financial difficulty are made in an attempt to protect as much of the investment in the loan as possible. These modifications are generally made to either prevent a loan from becoming nonaccrual or to return a nonaccrual loan to performing status based on the expectations that the borrower can adequately perform in accordance with the modified terms.

The determination of whether a modification should be classified as a TDR requires significant judgment after taking into consideration all facts and circumstances surrounding the transaction. No single characteristic or factor, taken alone, is determinative of whether a modification should be classified as a TDR. The fact that a single characteristic is present is not considered sufficient to overcome the preponderance of contrary evidence. Assuming all of the TDR criteria are met, the Company considers one or more of the following concessions to the loan terms to represent a TDR: (1) a reduction of the stated interest rate, (2) an extension of the maturity date or dates at a stated interest rate lower than the current market rate for a new loan with similar terms or (3) forgiveness of principal or accrued interest.

Loans renegotiated at a rate equal to or greater than that of a new loan with comparable risk at the time the contract is modified are excluded from TDR classification in the calendar years subsequent to the renegotiation if the loan is in compliance with the modified terms for at least six months.

The Company does not accrue interest on any TDRs unless it believes collection of all principal and interest under the modified terms is reasonably assured. Generally, six months of consecutive payment performance by the borrower under the restructured terms is required before a TDR is returned to accrual status. However, the period could vary depending upon the individual facts and circumstances of the loan. TDRs accruing interest are classified as performing TDRs. The following table presents the categories of performing TDRs as of September 30, 2011 and December 31, 2010:

	September 30,		December 31,
	2011		2010
	(dollars expressed in thousands)
Commercial, financial and agricultural	$	4,519	—
Real estate construction and development		3,144	3,145
Real estate mortgage:
One-to-four family residential		81,348	91,329
Multi-family residential		3,188	—
Commercial real estate		2,701	18,429
Total performing troubled debt restructurings	$	94,900	112,903

The Company does not accrue interest on TDRs which have been modified for a period less than six months or are not in compliance with the modified terms. These loans are considered nonperforming TDRs and are included with other nonaccrual loans for classification purposes. The following table presents the categories of loans considered nonperforming TDRs as of September 30, 2011 and December 31, 2010:

	September 30,		December 31,
	2011		2010
	(dollars expressed in thousands)
Commercial, financial and agricultural	$	1,555	5,432
Real estate construction and development		7,496	9,927
Real estate mortgage:
One-to-four family residential		4,872	4,923
Commercial real estate		8,968	5,909
Total nonperforming troubled debt restructurings	$	22,891	26,191

Both performing and nonperforming TDRs are considered to be impaired loans. When an individual loan is determined to be a TDR, the amount of impairment is based upon the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the underlying collateral less applicable selling costs. The impairment amount is either charged off as a reduction to the allowance for loan losses or provided for as a specific reserve within the allowance for loan losses. The allowance for loan losses allocated to TDRs was $11.2 million and $11.4 million at September 30, 2011 and December 31, 2010, respectively.

The following table presents loans classified as TDRs that were modified during the three and nine months ended September 30, 2011:

	Loan Modifications as Troubled Debt Restructurings
	Three Months Ended September 30, 2011					Nine Months Ended September 30, 2011
	(dollars expressed in thousands)
		Pre-		Post-			Pre-		Post-
		Modification		Modification			Modification		Modification
	Number	Outstanding		Outstanding		Number	Outstanding		Outstanding
	of	Recorded		Recorded		of	Recorded		Recorded
	Contracts	Investment		Investment		Contracts	Investment		Investment
Commercial, financial and agricultural	—	$	—	$	—	3	$	1,945	$	1,945
Real estate construction and development	2		7,372		6,354	2		7,372		6,354
Real estate mortgage:
One-to-four family residential	22		4,374		3,930	94		17,187		16,094
Multi-family residential	1		4,964		3,209	1		4,964		3,209
Commercial real estate	1		259		250	3		9,246		6,022

The following table presents TDRs that defaulted within twelve months of modification during the three and nine months ended September 30, 2011:

	Troubled Debt Restructurings That Subsequently Defaulted
	Three Months Ended			Nine Months Ended
	September 30, 2011			September 30, 2011
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
	(dollars expressed in thousands)
Real estate mortgage:
One-to-four family residential	7	$	1,213	29	$	6,819

Upon default of a TDR, which is considered to be 90 days or more past due under the modified terms, impairment is measured based on the fair value of the underlying collateral less applicable selling costs. The impairment amount is either charged off as a reduction to the allowance for loan losses or provided for as a specific reserve within the allowance for loan losses.

Allowance for Loan Losses. The allowance for loan losses is a reserve for estimated credit losses on individually evaluated loans determined to be impaired as well as estimated credit losses inherent in the loan portfolio, and is based on quarterly evaluations of the collectability and historical loss experience of loans. Actual credit losses, net of recoveries, are deducted from the allowance for loan losses. A provision for loan losses, which is a charge against earnings, is recorded to bring the allowance for loan losses to a level that, in management’s judgment, is appropriate to absorb probable losses in the loan portfolio.

The allocation methodology applied by the Company, designed to assess the appropriateness of the allowance for loan losses, includes an allocation methodology, as well as management’s ongoing review and grading of the loan portfolio into criticized loan categories (defined as specific loans warranting either specific allocation, or a criticized status of special mention, substandard, doubtful or loss). The allocation methodology focuses on evaluation of several factors, including but not limited to: evaluation of facts and circumstances related to specific loans, management’s ongoing review and grading of the loan portfolio, consideration of historical loan loss and delinquency experience within each portfolio category, trends in past due and nonaccrual loans, the level of potential problem loans, the risk characteristics of the various classifications of loans, changes in the size and character of the loan portfolio, concentrations of loans to specific borrowers or industries, existing economic conditions, the fair value of underlying collateral, and other qualitative and quantitative factors which could affect potential credit losses. Because each of the criteria used is subject to change, the allocation of the allowance for loan losses is made for analytical purposes and is not necessarily indicative of the trend of future loan losses in any particular loan category. The total allowance for loan losses is available to absorb losses from any segment of the loan portfolio.

When an individual loan is determined to be impaired, the allowance for loan losses attributable to the loan is allocated based on management’s estimate of the borrower’s ability to repay the loan given the availability of collateral, other sources of cash flows, as well as evaluation of legal options available to the Company. The amount of impairment is measured based upon the present value of expected future cash flows discounted at the loan’s effective interest rate, the fair value of the underlying collateral less applicable selling costs, or the observable market price of the loan. If foreclosure is probable or the loan is collateral dependent, impairment is measured using the fair value of the loan’s collateral, less estimated costs to sell. Large groups of homogeneous loans, such as residential mortgage, home equity and installment loans, are aggregated and collectively evaluated for impairment.

Changes in the allowance for loan losses for the three and nine months ended September 30, 2011 and 2010 were as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2011			2010		2011		2010
	(dollars expressed in thousands)
Balance, beginning of period	$	161,186		241,969		201,033		266,448
Allowance for loan losses allocated to loans sold		—		—		—		(321	)
		161,186		241,969		201,033		266,127
Loans charged-off		(26,074	)	(58,293	)	(112,237	)	(246,082	)
Recoveries of loans previously charged-off		3,612		5,375		16,928		44,006
Net loans charged-off		(22,462	)	(52,918	)	(95,309	)	(202,076	)
Provision for loan losses		19,000		37,000		52,000		162,000
Balance, end of period	$	157,724		226,051		157,724		226,051

The following table represents a summary of changes in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2011 in addition to the impairment method used by loan category at September 30, 2011:

				Real Estate
	Commercial			Construction		One-to-Four		Multi-				Consumer
	and			and		Family		Family		Commercial		and
	Industrial			Development		Residential		Residential		Real Estate		Installment		Total
	(dollars expressed in thousands)
Three months ended
September 30, 2011:
Allowance for loan losses:
Beginning balance	$	28,938		35,768		52,609		5,287		38,061		523		161,186
Charge-offs		(9,248	)	(5,944	)	(8,589	)	(60	)	(2,144	)	(89	)	(26,074	)
Recoveries		1,559		575		710		485		219		64		3,612
Provision (benefit) for loan
losses		9,298		2,380		7,014		85		266		(43	)	19,000
Ending balance	$	30,547		32,779		51,744		5,797		36,402		455		157,724
Nine months ended
September 30, 2011:
Allowance for loan losses:
Beginning balance	$	28,000		58,439		60,762		5,158		47,880		794		201,033
Charge-offs		(31,992	)	(25,630	)	(25,076	)	(2,990	)	(26,165	)	(384	)	(112,237	)
Recoveries		5,525		4,958		3,331		528		2,323		263		16,928
Provision (benefit) for loan
losses		29,014		(4,988	)	12,727		3,101		12,364		(218	)	52,000
Ending balance	$	30,547		32,779		51,744		5,797		36,402		455		157,724
Ending balance: individually
evaluated for impairment	$	7,710		3,163		2,855		349		5,006		—		19,083
Ending balance: collectively
evaluated for impairment	$	22,837		29,616		48,889		5,448		31,396		455		138,641
Financing receivables:
Ending balance	$	768,047		303,263		920,624		128,144		1,320,905		25,213		3,466,196
Ending balance: individually
evaluated for impairment	$	56,277		77,809		17,968		10,783		64,098		—		226,935
Ending balance: collectively
evaluated for impairment	$	711,770		225,454		902,656		117,361		1,256,807		25,213		3,239,261
Ending balance: loans acquired
with deteriorated credit
quality	$	—		—		—		—		—		—		—

The following table represents a summary of the allowance for loan losses by portfolio segment at December 31, 2010 in addition to the impairment method used by loan category at December 31, 2010:

			Real Estate
	Commercial		Construction	One-to-Four	Multi-		Consumer
	and		and	Family	Family	Commercial	and
	Industrial		Development	Residential	Residential	Real Estate	Installment	Total
	(dollars expressed in thousands)
December 31, 2010:
Allowance for loan losses	$	28,000	58,439	60,762	5,158	47,880	794	201,033
Ending balance: individually
evaluated for impairment	$	4,690	6,572	4,975	644	9,997	—	26,878
Ending balance: collectively
evaluated for impairment	$	23,310	51,867	55,787	4,514	37,883	794	174,155
Financing receivables:
Ending balance	$	1,045,832	490,766	1,050,895	178,289	1,642,920	29,112	4,437,814
Ending balance: individually
evaluated for impairment	$	44,585	128,797	30,388	12,960	136,254	—	352,984
Ending balance: collectively
evaluated for impairment	$	1,001,247	361,969	1,020,507	165,329	1,506,666	29,112	4,084,830
Ending balance: loans acquired
with deteriorated credit
quality	$	—	—	314	—	—	—	314