Table 8 - Allowance for Loan Losses and Nonperforming Assets Year ended December 31 (Dollars in thousands) 2011 2010 2009 2008 2007 Allowance for loan losses: Balance at beginning of period $ 7,676 6,495 4,398 4,105 4,044 Charge-offs: Commercial and industrial (679) (537) (495) (454) (62) Construction and land development (1,758) (1,487) (2,088) — — Commercial real estate (422) — — Residential real estate (533) (552) (704) (153) (143) Consumer installment (21) (111) (61) (98) (45) Total charge-offs (3,413) (2,687) (3,348) (705) (250) Recoveries: Commercial and industrial 34 63 47 102 14 Construction and land development 2 54 50 — — Commercial real estate — — — 69 Residential real estate 155 151 92 6 199 Consumer installment 15 20 6 20 6 Total recoveries 206 288 195 128 288 Net (charge-offs) recoveries (3,207) (2,399) (3,153) (577) 38 Provision for loan losses 2,450 3,580 5,250 870 23 Ending balance $ 6,919 7,676 6,495 4,398 4,105 as a % of loans 1.87 % 2.05 1.73 1.19 1.27 as a % of nonperforming loans 67 65 69 99 918 Net charge-offs as a % of average loans 0.86 % 0.64 0.84 0.17 (0.01) Nonperforming assets: Nonaccrual/nonperforming loans $ 10,354 11,833 9,352 4,431 447 Other real estate owned 7,898 8,125 7,292 324 98 Total nonperforming assets $ 18,252 19,958 16,644 4,755 545 as a % of loans and foreclosed properties 4.83 % 5.22 4.34 1.29 0.17 as a % total assets 2.35 2.61 2.15 0.64 0.08 Nonperforming loans as a % of total loans 2.80 % 3.16 2.49 1.20 0.14 Accruing loans 90 days or more past due $ — — 5 104 4 page 30