quarterly allowance assessment in their entirety either improve or weaken. Net charge-offs were $3.2 million, or 0.86% of average loans, in 2011, compared to net charge-offs of $2.4 million, or  0.84%, in 2010. In both 2011 and 2010, net charge-offs were affected by a few individually significant charge-offs. In 2011,  the Company charged off $1.9 million related to one borrowing relationship and approximately $0.6 million related to two  A/B note restructurings. In 2010, the Company charged off $1.3 million related to one construction and land development  loan. At December 31, 2011 and 2010, the ratio of our allowance for loan losses as a percentage of nonperforming loans was  67% and 65%, respectively. At December 31, 2011, the Company’s recorded investment in loans considered impaired was $11.0 million, with a  corresponding valuation allowance (included in the allowance for loan losses) of $1.2 million. At December 31, 2010, the  Company’s recorded investment in loans considered impaired was $11.7 million, with a corresponding valuation allowance  (included in the allowance for loan losses) of $1.3 million. In addition, our regulators, as an integral part of their examination process, will periodically review the Company’s  allowance for loan losses, and may require the Company to make additional provisions to the allowance for loan losses based  on their judgment about information available to them at the time of their examinations. At December 31, 2011 the Company had $18.3 million in nonperforming assets compared to $20.0 million at  December 31, 2010. Included in nonperforming assets were nonperforming loans of $10.4 million and $11.8 million at  December 31, 2011 and 2010, respectively. Nonperforming assets decreased during 2011 due to continued efforts by  management to reduce or resolve problem assets. The majority of the balance in nonperforming assets at December 31, 2011  related to deterioration in the construction and land development loan portfolio.  The table below provides information concerning total nonperforming assets and certain asset quality ratios. LCAR reported that the average median residential home price in Lee County, Alabama for the quarter ended  December 31, 2011 was $139,461, a decrease of 24.2% from the same quarter a year earlier. Although residential home  prices declined, this appears to have had a positive impact on sales activity. The number of homes sold during the quarter  ended December 31, 2011 increased by 30.8% from the same quarter a year ago. LCAR also reported that residential  inventory at December 31, 2011 was 1,047 homes, a decrease of 16.1% from a year earlier. Continued weakness in the  residential real estate market and the overall economy could adversely affect the Company’s volume of nonperforming assets.  For additional discussion of this risk, see Part I “Item 1A. Risk Factors”.  page 14 Nonperforming Assets  December 31 (In thousands) 2011 2010 2009 2008 2007 Nonperforming assets: Nonaccrual 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 % of 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