(6) Loans

Loans at June 30, 2011 and December 31, 2010 classified by type are as follows:


	June 30, 2011		December 31, 2010
	(Dollars in thousands)
Real estate loans:
Construction and land development	$	84,413	$	90,267
Secured by farmland		33,706		26,694
Secured by residential properties		117,332		120,183
Secured by nonfarm, nonresidential properties		211,801		218,028
Consumer installment		5,080		4,096
Credit cards and related plans		2,420		2,261
Commercial and all other loans:
Commercial and industrial		47,761		60,242
Loans to finance agricultural production		23,705		28,217
All other loans		16,589		17,863

		542,807		567,851
Less deferred fees and costs, net		120		220

	$	542,687	$	567,631

Included in the above:
Nonaccrual loans	$	18,297	$	15,896
Restructured loans 1		6,919		6,193

1.	Restructured loans include loans restructured and still accruing. The Company is not committed to advance additional funds on restructured loans.

The Company, through its normal lending activity, originates and maintains loans receivable that are substantially concentrated in the Eastern region of North Carolina, where its offices are located. The Company's policy calls for collateral or other forms of repayment assurance to be received from the borrower at the time of loan origination. Such collateral or other form of repayment assurance is subject to changes in economic value due to various factors beyond the control of the Company, and such changes could be significant.

At June 30, 2011 and December 31, 2010, included in real estate loans were loans collateralized by owner-occupied residential real estate of approximately $58.1 million and $55.5 million, respectively.

Loans with a book value of approximately $23.6 million at June 30, 2011 are pledged as eligible collateral for FHLB advances. Loans with a book value of approximately $30.1 million at December 31, 2010 were pledged as eligible collateral for FHLB advances.