Audited Financial Statements The following table presents an analysis of the allowance for loan losses and recorded investment in loans by portfolio  segment and impairment methodology as of December 31, 2011 and 2010. (1) Represents loans collectively evaluated for impairment in accordance with ASC 450-20,  Loss Contingencies (formerly FAS 5), and pursuant to amendments by ASU 2010-20 regarding allowance for unimpaired loans (2) Represents loans individually evaluated for impairment in accordance with ASC 310-30,  Receivables  (formerly FAS 114), and pursuant to amendments by ASU 2010-20 regarding allowance for impaired loans. Collectively evaluated (1) Individually evaluated (2) Total Allowance Recorded Allowance Recorded Allowance Recorded for loan investment for loan investment for loan investment (In thousands) losses in loans losses in loans losses in loans December 31, 2011: Commercial and industrial $ 948 54,772 — 216 948 54,988 Construction and land development 1,323 34,719 147 5,095 1,470 39,814 Commercial real estate 2,201 158,053 808 4,382 3,009 162,435 Residential real estate 1,097 100,432 266 1,293 1,363 101,725 Consumer installment 129 11,454 — — 129 11,454 Unallocated — — — — Total $ 5,698 359,430 1,221 10,986 6,919 370,416 December 31, 2010: Commercial and industrial $ 695 52,767 277 521 972 53,288 Construction and land development 2,100 43,748 123 4,102 2,223 47,850 Commercial real estate 2,128 161,611 765 4,630 2,893 166,241 Residential real estate 1,192 93,823 144 2,418 1,336 96,241 Consumer installment 141 10,676 — — 141 10,676 Unallocated 111 — 111 — Total $ 6,367 362,625 1,309 11,671 7,676 374,296 page 55