4. Loans

Loans as of December 31 consisted of the following:

(in thousands)	2011			2010
Commercial Real Estate	$	307,670		$	318,341
Agricultural Real Estate		280,139			254,575
Real Estate Construction		29,607			37,486
Residential 1st Mortgages		107,421			103,574
Home Equity Lines and Loans		50,956			58,971
Agricultural		217,227			231,150
Commercial		165,089			165,263
Consumer & Other		6,935			8,712
Total Gross Loans		1,165,044			1,178,072
Deferred Loan Origination Fees, Net		(1,966	)		(2,070	)
Subtotal		1,163,078			1,176,002
Allowance for Loan Losses		(33,017	)		(32,261	)
Net Loans	$	1,130,061		$	1,143,741

At December 31, 2011, the portion of loans that were approved for pledging as collateral on borrowing lines with the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank (“FRB”) were $338.1 million and $403.3 million, respectively. The borrowing capacity on these loans was $218.7 million from FHLB and $293.8 million from the FRB. There was an outstanding borrowing of $43,000 against the FHLB collateral and no outstanding borrowings against the FRB collateral these loans at December 31, 2011.