allowance for loan losses we believe the allowance for loan losses is a critical accounting policy that requires the most significant judgments and estimates used in the preparation of our consolidated financial statements . the allowance for loan losses represents management 's estimate of probable loan losses inherent in the company 's loan portfolio . calculation of the allowance for loan losses represents a critical accounting estimate due to the significant judgment , assumptions and estimates related to the amount and timing of estimated losses , consideration of subjective environmental factors and the amount and timing of cash flows related to impaired loans . 30 index to financial statements management believes that the allowance for loan losses is adequate . while management uses available information to recognize losses on loans , future additions to the allowance for loan losses may be necessary based on changes in economic conditions . in addition , various regulatory agencies , as an integral part of their examination processes , periodically review the company 's allowance for loan losses . such agencies may require the company to recognize additions to the allowance for loan losses based on their judgments about information available to them at the time of their examination . considering current information and events regarding a borrower 's ability to repay its obligations , management considers a loan to be impaired when the ultimate collectability of all amounts due , according to the contractual terms of the loan agreement , is in doubt . when a loan is considered to be impaired , the amount of impairment is measured based on the present value of expected future cash flows discounted at the loan 's effective interest rate or if the loan is collateral-dependent , the fair value of the collateral is used to determine the amount of impairment . impairment losses are included in the allowance for loan losses through a charge to the provision for losses on loans . subsequent recoveries are credited to the allowance for loan losses . cash receipts for accruing loans are applied to principal and interest under the contractual terms of the loan agreement . cash receipts on impaired loans for which the accrual of interest has been discontinued are applied first to principal and then to interest income . certain economic and interest rate factors could have a material impact on the determination of the allowance for loan losses . an improving economy could result in the expansion of businesses and creation of jobs which would positively affect our loan growth and improve our gross revenue stream . conversely , certain factors could result from an expanding economy which could increase our credit costs and adversely impact our net earnings . a significant rapid rise in interest rates could create higher borrowing costs and shrinking corporate profits which could have a material impact on a borrower 's ability to pay . we will continue to concentrate on maintaining a high quality loan portfolio through strict administration of our loan policy . another factor that we have considered in the determination of the allowance for loan losses is loan concentrations to individual borrowers or industries . at december 31 , 2011 , we had three non-covered loans that exceed our in-house credit limit of $ 5.0 million . total exposure to these three credits is $ 16.4 million . additional disclosure concerning the company 's largest loan relationships is provided below . a substantial portion of our loan portfolio is in the commercial real estate and residential real estate sectors . those loans are secured by real estate in our primary market areas . a substantial portion of oreo is located in those same markets . therefore , the ultimate collectability of a substantial portion of our loan portfolio and the recoverability of a substantial portion of the carrying amount of oreo are susceptible to changes to market conditions in our primary market area . fair value accounting estimates generally accepted accounting principles ( gaap ) require the use of fair values in determining the carrying values of certain assets and liabilities , as well as for specific disclosures . the most significant include impaired loans , oreo , and the net assets acquired in business combinations . certain of these assets do not have a readily available market to determine fair value and require an estimate based on specific parameters . when market prices are unavailable , we determine fair values utilizing estimates , which are constantly changing , including interest rates , duration , prepayment speeds and other specific conditions . in most cases , these specific parameters require a significant amount of judgment by management . at december 31 , 2011 , the percentage of the company 's assets measured at fair value was 38 % . see note 19 , fair value of financial instruments ,  in the notes to consolidated financial statements herein for additional disclosures regarding the fair value of our assets and liabilities . when a loan is considered 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 . in addition , foreclosed assets are carried at the net realizable value , following foreclosure . the company 's impaired loans and foreclosed property are concentrated in markets and areas where the determination of fair value through market research ( recent sales and or qualified appraisals ) is difficult . accordingly , the determination of fair value in the current environment is difficult and more subjective than it would be in traditionally stable real estate environments . story_separator_special_tag 36 index to financial statements 2010 compared to 2009. operating expenses in 2010 increased from $ 70.0 million in 2009 , excluding the $ 54.8 million of goodwill impairment recorded in 2009 , to $ 81.2 million in 2010. problem loan and oreo expenses increased $ 8.8 million in 2010 , as the level of oreo and problem loans remained elevated throughout 2010. this $ 8.8 million increase included a $ 3.7 million increase in losses on the sale of oreo and a $ 5.1 million increase in carrying costs on problem loans and oreo . reductions in marketing and advertising expense totaled $ 1.1 million , or 65.9 % , as the company reduced print and radio advertisements and focused more heavily on lower cost advertising in its local markets . although the company 's assets increased 22.6 % during 2010 , salaries and employee benefits remained stable at $ 31.9 million for both 2009 and 2010. expenses associated with occupancy and equipment decreased by 7.9 % in 2010 to $ 8.2 million due to lower maintenance and depreciation expense . at the end of 2010 , the company has no branch projects planned or under development and notes that all costs associated with its recent de novo activity in south carolina have been incurred . data processing and communication costs increased to $ 7.6 million in 2010 , an increase of 11.1 % compared to $ 6.9 million in 2009. this increase is attributable to the fdic-assisted transactions , as well as growth in customer accounts . the company anticipates data processing costs to stabilize as the banks acquired through fdic-assisted transactions are converted to the ameris core operating system . income taxes federal income tax expense is influenced by the amount of taxable income , the amount of tax-exempt income and the amount of non-deductible expenses . for the year ended december 31 , 2011 , the company recorded income tax expense of $ 10.6 million . this compares to an income tax benefit of $ 3.2 million for the year ended december 31 , 2010 and income tax expense of $ 7.3 million for the year ended december 31 , 2009. the company 's effective tax rate was 33 % , 44 % and 21 % for the years ended december 31 , 2011 , 2010 and 2009 , respectively . the company has excluded the goodwill impairment charge of $ 54.8 million for purposes of calculating the 2009 effective tax rate . the company 's higher effective tax rate for 2010 was due to the impact of tax-exempt income compared to total taxable income for the year . balance sheet comparison loans management believes that our loan portfolio is adequately diversified . the loan portfolio contains no foreign loans or significant concentrations in any one industry . as of december 31 , 2011 , approximately 85.1 % of our loan portfolio was secured by real estate . the amount of loans outstanding at the indicated dates is shown in the following table according to type of loans . replace_table_token_8_th 37 index to financial statements the following table provides additional disclosure on the various loan types comprising the subgroup real estate  commercial & farmland at december 31 , 2011 ( in thousands ) : replace_table_token_9_th assets covered by loss-sharing agreements with the fdic - loans that were acquired in fdic-assisted transactions that are covered by the loss-sharing agreements with the fdic ( covered loans ) totaling $ 571.5 million and $ 555.0 million at december 31 , 2011 and 2010 , respectively , are not included in the preceding table . oreo that is covered by the loss-sharing agreements with the fdic totaled $ 78.6 million and $ 54.9 million at december 31 , 2011 and 2010 , respectively . the loss-sharing agreements are subject to the servicing procedures as specified in the agreements with the fdic . the expected reimbursements under the loss-sharing agreements were recorded as an indemnification asset at their estimated fair value of $ 95.0 million , $ 168.9 million and $ 45.8 million on the 2011 , 2010 and 2009 acquisition dates , respectively . the fdic loss-share receivable reported at december 31 , 2011 and 2010 was $ 242.4 million and $ 177.2 million , respectively . the company recorded the loans at their fair values , taking into consideration certain credit quality , risk and liquidity marks . the company is confident in its estimation of credit risk and its adjustments to the carrying balances of the acquired loans . if the company determines that a loan or group of loans has deteriorated from its initial assessment of fair value , a reserve for loan losses will be established to account for that difference . for the years ended december 31 , 2011 and 2010 , the company recorded approximately $ 2.4 million and $ 1.7 million , respectively , of provision for loan losses to account for decreases in estimated cash flows on loans acquired in fdic-assisted transactions . if the company determines that a loan or group of loans has improved from its initial assessment of fair value , the increase in cash flows over those expected at the acquisition date are recognized as interest income prospectively . covered loans are shown below according to loan type as of the end of the years shown ( in thousands ) : replace_table_token_10_th 38 index to financial statements the company seeks to diversify its loan portfolio across its geographic footprint and in various loan types . also , the company 's stated in-house legal lending limit for a single loan is $ 5 million which would normally prevent a concentration with a single loan project . certain lending relationships may contain more than one loan and consequently , exceed the in-house lending limit . the company regularly monitors its largest loan relationships to avoid a concentration with a single borrower . the largest 25 loan relationships are summarized

liquidity and interest rate sensitivity liquidity management involves the matching of the cash flow requirements of customers , who may be either depositors desiring to withdraw funds or borrowers needing assurance that sufficient funds will be available to meet their credit needs , and the ability of our company to meet those needs . we seek to meet liquidity requirements primarily through management of short-term investments ( principally interest-bearing deposits in banks ) and monthly amortizing loans . another source of liquidity is the repayment of maturing single payment loans . in addition , our company maintains relationships with correspondent banks including the fhlb and frb , which could provide funds on short notice , if needed . a principal objective of our asset/liability management strategy is to minimize our exposure to changes in interest rates by matching the maturity and repricing horizons of interest-earning assets and interest-bearing liabilities . this strategy is overseen in part through the direction of our asset and liability committee ( the alco committee ) which establishes policies and monitors results to control interest rate sensitivity . as part of our interest rate risk management policy , the alco committee examines the extent to which its assets and liabilities are interest rate sensitive and monitors its interest rate-sensitivity gap. an asset or liability is considered to be interest rate sensitive if it will reprice or mature within the time period analyzed , usually one year or less . the interest rate-sensitivity gap is the difference between the interest-earning assets and interest-bearing liabilities scheduled to mature or reprice within such time period . a gap is considered positive when the amount of interest rate-sensitive assets exceeds the amount of interest rate-sensitive liabilities . a gap is considered negative when the amount of interest rate-sensitive liabilities exceeds the interest rate-sensitive assets . during a period of rising interest rates , a negative gap would tend to adversely affect net interest income , while a positive gap would tend to result in an increase in net interest income .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and interest rate sensitivity liquidity management involves the matching of the cash flow requirements of customers , who may be either depositors desiring to withdraw funds or borrowers needing assurance that sufficient funds will be available to meet their credit needs , and the ability of our company to meet those needs . we seek to meet liquidity requirements primarily through management of short-term investments ( principally interest-bearing deposits in banks ) and monthly amortizing loans . another source of liquidity is the repayment of maturing single payment loans . in addition , our company maintains relationships with correspondent banks including the fhlb and frb , which could provide funds on short notice , if needed . a principal objective of our asset/liability management strategy is to minimize our exposure to changes in interest rates by matching the maturity and repricing horizons of interest-earning assets and interest-bearing liabilities . this strategy is overseen in part through the direction of our asset and liability committee ( the alco committee ) which establishes policies and monitors results to control interest rate sensitivity . as part of our interest rate risk management policy , the alco committee examines the extent to which its assets and liabilities are interest rate sensitive and monitors its interest rate-sensitivity gap. an asset or liability is considered to be interest rate sensitive if it will reprice or mature within the time period analyzed , usually one year or less . the interest rate-sensitivity gap is the difference between the interest-earning assets and interest-bearing liabilities scheduled to mature or reprice within such time period . a gap is considered positive when the amount of interest rate-sensitive assets exceeds the amount of interest rate-sensitive liabilities . a gap is considered negative when the amount of interest rate-sensitive liabilities exceeds the interest rate-sensitive assets . during a period of rising interest rates , a negative gap would tend to adversely affect net interest income , while a positive gap would tend to result in an increase in net interest income .
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 Suspicious Activity Report : allowance for loan losses we believe the allowance for loan losses is a critical accounting policy that requires the most significant judgments and estimates used in the preparation of our consolidated financial statements . the allowance for loan losses represents management 's estimate of probable loan losses inherent in the company 's loan portfolio . calculation of the allowance for loan losses represents a critical accounting estimate due to the significant judgment , assumptions and estimates related to the amount and timing of estimated losses , consideration of subjective environmental factors and the amount and timing of cash flows related to impaired loans . 30 index to financial statements management believes that the allowance for loan losses is adequate . while management uses available information to recognize losses on loans , future additions to the allowance for loan losses may be necessary based on changes in economic conditions . in addition , various regulatory agencies , as an integral part of their examination processes , periodically review the company 's allowance for loan losses . such agencies may require the company to recognize additions to the allowance for loan losses based on their judgments about information available to them at the time of their examination . considering current information and events regarding a borrower 's ability to repay its obligations , management considers a loan to be impaired when the ultimate collectability of all amounts due , according to the contractual terms of the loan agreement , is in doubt . when a loan is considered to be impaired , the amount of impairment is measured based on the present value of expected future cash flows discounted at the loan 's effective interest rate or if the loan is collateral-dependent , the fair value of the collateral is used to determine the amount of impairment . impairment losses are included in the allowance for loan losses through a charge to the provision for losses on loans . subsequent recoveries are credited to the allowance for loan losses . cash receipts for accruing loans are applied to principal and interest under the contractual terms of the loan agreement . cash receipts on impaired loans for which the accrual of interest has been discontinued are applied first to principal and then to interest income . certain economic and interest rate factors could have a material impact on the determination of the allowance for loan losses . an improving economy could result in the expansion of businesses and creation of jobs which would positively affect our loan growth and improve our gross revenue stream . conversely , certain factors could result from an expanding economy which could increase our credit costs and adversely impact our net earnings . a significant rapid rise in interest rates could create higher borrowing costs and shrinking corporate profits which could have a material impact on a borrower 's ability to pay . we will continue to concentrate on maintaining a high quality loan portfolio through strict administration of our loan policy . another factor that we have considered in the determination of the allowance for loan losses is loan concentrations to individual borrowers or industries . at december 31 , 2011 , we had three non-covered loans that exceed our in-house credit limit of $ 5.0 million . total exposure to these three credits is $ 16.4 million . additional disclosure concerning the company 's largest loan relationships is provided below . a substantial portion of our loan portfolio is in the commercial real estate and residential real estate sectors . those loans are secured by real estate in our primary market areas . a substantial portion of oreo is located in those same markets . therefore , the ultimate collectability of a substantial portion of our loan portfolio and the recoverability of a substantial portion of the carrying amount of oreo are susceptible to changes to market conditions in our primary market area . fair value accounting estimates generally accepted accounting principles ( gaap ) require the use of fair values in determining the carrying values of certain assets and liabilities , as well as for specific disclosures . the most significant include impaired loans , oreo , and the net assets acquired in business combinations . certain of these assets do not have a readily available market to determine fair value and require an estimate based on specific parameters . when market prices are unavailable , we determine fair values utilizing estimates , which are constantly changing , including interest rates , duration , prepayment speeds and other specific conditions . in most cases , these specific parameters require a significant amount of judgment by management . at december 31 , 2011 , the percentage of the company 's assets measured at fair value was 38 % . see note 19 , fair value of financial instruments ,  in the notes to consolidated financial statements herein for additional disclosures regarding the fair value of our assets and liabilities . when a loan is considered 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 . in addition , foreclosed assets are carried at the net realizable value , following foreclosure . the company 's impaired loans and foreclosed property are concentrated in markets and areas where the determination of fair value through market research ( recent sales and or qualified appraisals ) is difficult . accordingly , the determination of fair value in the current environment is difficult and more subjective than it would be in traditionally stable real estate environments . story_separator_special_tag 36 index to financial statements 2010 compared to 2009. operating expenses in 2010 increased from $ 70.0 million in 2009 , excluding the $ 54.8 million of goodwill impairment recorded in 2009 , to $ 81.2 million in 2010. problem loan and oreo expenses increased $ 8.8 million in 2010 , as the level of oreo and problem loans remained elevated throughout 2010. this $ 8.8 million increase included a $ 3.7 million increase in losses on the sale of oreo and a $ 5.1 million increase in carrying costs on problem loans and oreo . reductions in marketing and advertising expense totaled $ 1.1 million , or 65.9 % , as the company reduced print and radio advertisements and focused more heavily on lower cost advertising in its local markets . although the company 's assets increased 22.6 % during 2010 , salaries and employee benefits remained stable at $ 31.9 million for both 2009 and 2010. expenses associated with occupancy and equipment decreased by 7.9 % in 2010 to $ 8.2 million due to lower maintenance and depreciation expense . at the end of 2010 , the company has no branch projects planned or under development and notes that all costs associated with its recent de novo activity in south carolina have been incurred . data processing and communication costs increased to $ 7.6 million in 2010 , an increase of 11.1 % compared to $ 6.9 million in 2009. this increase is attributable to the fdic-assisted transactions , as well as growth in customer accounts . the company anticipates data processing costs to stabilize as the banks acquired through fdic-assisted transactions are converted to the ameris core operating system . income taxes federal income tax expense is influenced by the amount of taxable income , the amount of tax-exempt income and the amount of non-deductible expenses . for the year ended december 31 , 2011 , the company recorded income tax expense of $ 10.6 million . this compares to an income tax benefit of $ 3.2 million for the year ended december 31 , 2010 and income tax expense of $ 7.3 million for the year ended december 31 , 2009. the company 's effective tax rate was 33 % , 44 % and 21 % for the years ended december 31 , 2011 , 2010 and 2009 , respectively . the company has excluded the goodwill impairment charge of $ 54.8 million for purposes of calculating the 2009 effective tax rate . the company 's higher effective tax rate for 2010 was due to the impact of tax-exempt income compared to total taxable income for the year . balance sheet comparison loans management believes that our loan portfolio is adequately diversified . the loan portfolio contains no foreign loans or significant concentrations in any one industry . as of december 31 , 2011 , approximately 85.1 % of our loan portfolio was secured by real estate . the amount of loans outstanding at the indicated dates is shown in the following table according to type of loans . replace_table_token_8_th 37 index to financial statements the following table provides additional disclosure on the various loan types comprising the subgroup real estate  commercial & farmland at december 31 , 2011 ( in thousands ) : replace_table_token_9_th assets covered by loss-sharing agreements with the fdic - loans that were acquired in fdic-assisted transactions that are covered by the loss-sharing agreements with the fdic ( covered loans ) totaling $ 571.5 million and $ 555.0 million at december 31 , 2011 and 2010 , respectively , are not included in the preceding table . oreo that is covered by the loss-sharing agreements with the fdic totaled $ 78.6 million and $ 54.9 million at december 31 , 2011 and 2010 , respectively . the loss-sharing agreements are subject to the servicing procedures as specified in the agreements with the fdic . the expected reimbursements under the loss-sharing agreements were recorded as an indemnification asset at their estimated fair value of $ 95.0 million , $ 168.9 million and $ 45.8 million on the 2011 , 2010 and 2009 acquisition dates , respectively . the fdic loss-share receivable reported at december 31 , 2011 and 2010 was $ 242.4 million and $ 177.2 million , respectively . the company recorded the loans at their fair values , taking into consideration certain credit quality , risk and liquidity marks . the company is confident in its estimation of credit risk and its adjustments to the carrying balances of the acquired loans . if the company determines that a loan or group of loans has deteriorated from its initial assessment of fair value , a reserve for loan losses will be established to account for that difference . for the years ended december 31 , 2011 and 2010 , the company recorded approximately $ 2.4 million and $ 1.7 million , respectively , of provision for loan losses to account for decreases in estimated cash flows on loans acquired in fdic-assisted transactions . if the company determines that a loan or group of loans has improved from its initial assessment of fair value , the increase in cash flows over those expected at the acquisition date are recognized as interest income prospectively . covered loans are shown below according to loan type as of the end of the years shown ( in thousands ) : replace_table_token_10_th 38 index to financial statements the company seeks to diversify its loan portfolio across its geographic footprint and in various loan types . also , the company 's stated in-house legal lending limit for a single loan is $ 5 million which would normally prevent a concentration with a single loan project . certain lending relationships may contain more than one loan and consequently , exceed the in-house lending limit . the company regularly monitors its largest loan relationships to avoid a concentration with a single borrower . the largest 25 loan relationships are summarized

