Loans

In the tables below, loan classes are based on FDIC code, and portfolio segments are an aggregation of those classes based on the methodology used to develop and document the allowance for loan losses. FDIC classification codes are based on the underlying loan collateral.

The tabular disclosures in this Note include amounts related to other loans held for sale, which are reported separately from the Company’s gross loan portfolio on the Consolidated Balance Sheets and are subject to different accounting and reporting requirements. Inclusion of other loans held for sale with the related disclosures for gross loans provides a more accurate and relevant picture of the Company’s credit exposures.

Composition

The following table summarizes gross loans and other loans held for sale, categorized by portfolio segment, at the dates indicated (dollars in thousands).


	December 31, 2012						December 31, 2011
	Total			% of total			Total			% of total
Commercial real estate	$	459,212			62.1	%	$	492,754			62.6	%
Single-family residential		168,180			22.8			185,504			23.5
Commercial and industrial		51,661			7.0			49,381			6.3
Consumer		50,574			6.8			52,771			6.7
Other		9,431			1.3			7,326			0.9

Total loans	$	739,058			100.0	%	$	787,736			100.0	%

Less: other loans held for sale		(776	)					(14,178	)

Loans, gross	$	738,282					$	773,558

Loans included in the preceding table are net of unearned income, charge-offs and unamortized deferred fees and costs on originated loans. Net unearned income and deferred fees totaled $320 thousand at December 31, 2012 compared to $21 thousand at December 31, 2011.

At both December 31, 2012 and 2011, the aggregate balance of other loans held for sale was comprised of loans categorized in the commercial real estate portfolio segment.

Pledged

To borrow from the FHLB, members must pledge collateral. Acceptable collateral includes, among other types of collateral, a variety of loans including residential, multifamily, home equity lines and second mortgages as well as qualifying commercial loans. At December 31, 2012 and 2011, $201.2 million and $251.4 million of gross loans, respectively, were pledged to collateralize FHLB advances of which $79.9 million and $66.7 million, respectively, were available as lendable collateral.

At December 31, 2012 and 2011, $2.5 million and $5.4 million, respectively, of loans were pledged as collateral to cover the various Federal Reserve services that are available for use by the Company.

Concentrations

The following table summarizes loans secured by commercial real estate, categorized by class, at December 31, 2012 (dollars in thousands).


	Commercial real estate included in gross loans		Commercial real estate included in other loans held for sale		Total commercial real estate loans		% of gross loans and other loans held for sale			% of Bank’s total regulatory capital
Secured by commercial real estate
Construction, land development, and other land loans	$	66,123	$	776	$	66,899		9.1	%		58.1	%
Multifamily residential		11,659		—		11,659		1.5			10.1
Nonfarm nonresidential		380,654		—		380,654		51.5			330.8

Total loans secured by commercial real estate	$	458,436	$	776	$	459,212		62.1	%		399.0	%

The following table further categorizes loans secured by commercial real estate at December 31, 2012 (dollars in thousands).


	Commercial real estate included in gross loans		Commercial real estate included in other loans held for sale		Total commercial real estate loans		% of gross loans and other loans held for sale			% of Bank’s total regulatory capital
Development commercial real estate loans
Secured by:
Land—unimproved (commercial or residential)	$	22,581	$	—	$	22,581		3.1	%		19.6	%
Land development—commercial		7,536		—		7,536		1.0			6.5
Land development—residential		9,390		776		10,166		1.4			8.8
Commercial construction:
Retail		11,817		—		11,817		1.6			10.3
Office		218		—		218		—			0.2
Industrial and warehouse		805		—		805		0.1			0.7
Miscellaneous commercial		3,286		—		3,286		0.4			2.9

Total development commercial real estate loans		55,633		776		56,409		7.6			49.0

Existing and other commercial real estate loans
Secured by:
Hotel / motel		67,293		—		67,293		9.1			58.5
Retail		20,205		—		20,205		2.7			17.5
Office		20,133		—		20,133		2.7			17.5
Multifamily		11,659		—		11,659		1.6			10.1
Industrial and warehouse		8,026		—		8,026		1.1			7.0
Healthcare		18,626		—		18,626		2.5			16.2
Miscellaneous commercial		113,387		—		113,387		15.4			98.5
Residential construction—speculative		95		—		95		—			0.1

Total existing and other commercial real estate loans		259,424		—		259,424		35.1			225.4

Commercial real estate owner occupied and residential loans
Secured by:
Commercial—owner occupied		132,984		—		132,984		18.0			115.6
Commercial construction—owner occupied		4,550		—		4,550		0.6			3.9
Residential construction—contract		5,845		—		5,845		0.8			5.1

Total commercial real estate owner occupied and residential loans		143,379		—		143,379		19.4			124.6


Total loans secured by commercial real estate	$	458,436	$	776	$	459,212		62.1	%		399.0	%

Asset Quality

The Company’s loan portfolio is currently weighted toward commercial real estate lending. Commercial real estate loans have higher risks than other real estate loans because repayment is sensitive to interest rate changes, governmental regulation of real property, general economic and market conditions and the availability of long-term financing particularly in the current economic environment. Commercial and industrial loans are generally secured by the assets being financed or other business assets, such as accounts receivable or inventory, and generally incorporate a personal guarantee. In the case of loans secured by accounts receivable or inventory, the availability of funds for repayment of these loans may depend substantially on the ability of the client to collect amounts due from its customers or to liquidate inventory at sufficient prices. Underwriting standards for single-family real estate purpose loans are heavily regulated by statutory requirements. However, these loans have risks associated with declines in collateral value. Many consumer loans are unsecured and depend solely on the client’s availability of funds for the repayment of the loans.

The Company regularly monitors the credit quality of its loan portfolio. Credit quality refers to the current and expected ability of clients to repay their obligations according to the contractual terms of their loans. Credit quality is evaluated through assignment of individual loan grades as well as past due and performing status analysis. Credit quality indicators allow the Company to assess the inherent loss on certain individual loans and pools of loans.

The Company uses an internal risk rating system to classify and monitor the credit quality of all commercial loans. Loan risk ratings are based on a graduated scale representing increasing likelihood of loss. Responsibility for the assignment of risk ratings to commercial loans rests with the individual loan officer assigned to each loan subject to verification by the Credit Administration department that is independent of the loan officers. Risk ratings are also reviewed periodically by an independent third party loan review firm that reports directly to the Board of Directors. Individual loan officers are also responsible for ensuring risk ratings remain appropriate over the life of the loan. Commercial loan risk ratings are summarized as follows:


Risk rating	Description	Specific characteristics
1	Superior Quality	Fully secured by liquid collateral held at the Company
2	High Quality	Secured loans to public companies with satisfactory credit ratings and financial strength or secured by properly margined public securities
3	Satisfactory	Loans with reasonable credit risk to borrowers with satisfactory credit and financial strength (may include unsecured loans with defined primary and secondary repayment sources)
4	Pass	Loans with an elevated credit risk to clients with an adequate credit history and financial strength (includes loans with inherent industry risk with support from principals and/or guarantors)
W	Watch	A subset of “Pass”, watch loans have an elevated credit risk to clients with an adequate credit history and financial strength and are experiencing declining trends (e.g., financial, economic or industry specific)
5	Special Mention	Loans with potential credit weakness that deserve management attention that, if left uncorrected, may result in deterioration of repayment prospects for the loan
6	Substandard	Loans inadequately protected by the current sound worth and paying capacity of the client or of the collateral pledged that have well-defined weaknesses that jeopardize the liquidation of the loan combined with a distinct possibility that the Company will sustain some loss if the deficiencies are not corrected
7	Doubtful	Loans with all the weaknesses of “Substandard” with additional factors that make collection or liquidation in full highly questionable and improbable (generally these loans are placed on nonaccrual status)
8	Loss	Loans considered uncollectible that are immediately charged-off for which some recovery may exist, but the probability of such recovery does not warrant reflecting the loan as an asset
NR	Not Rated	Primarily consists of individual consumer loans not assigned a risk rating. Also, commercial loans in process for which an assigned risk rating has not yet been determined as underwriting steps are currently being taken to determine the appropriate risk rating to be assigned.

Credit quality of the consumer loan portfolio is monitored through review of delinquency measures and nonaccrual levels on a portfolio-level basis. In 2012, the Company amended its loan policy to include consumer loan classification criteria similar to that of classified commercial loans for past due consumer loans. In general, higher levels of amounts past due and loans in nonaccrual status are indicative of increased credit risk and higher potential inherent losses within these loan portfolios.

The following table summarizes various internal credit quality indicators of gross loans and other loans held for sale, by class, at December 31, 2012 (in thousands).


	Construction, land development and other land loans		Multifamily residential		Nonfarm nonresidential		Commercial real estate in other loans held for sale		Total commercial real estate
Grade 1	$	—	$	—	$	2,643	$	—	$	2,643
Grade 2		—		—		—		—		—
Grade 3		10,384		404		83,554		—		94,342
Grade 4		22,384		1,391		151,956		—		175,731
Grade W		6,735		2,431		73,306		—		82,472
Grade 5		3,354		7,183		28,910		—		39,447
Grade 6		4,000		246		38,328		—		42,574
Grade 7		2,780		—		1,801		776		5,357
Not risk rated*		16,486		4		156		—		16,646

	$	66,123	$	11,659	$	380,654	$	776	$	459,212

Less: Commercial real estate included in other loans held for sale										(776	)

Total									$	458,436

Consumer real estate loans of $16.5 million, included within construction, land development and other land loans not risk rated in accordance with our policy.


	Commercial and industrial
Grade 1	$	3,462
Grade 2		208
Grade 3		7,210
Grade 4		28,293
Grade W		7,330
Grade 5		677
Grade 6		3,701
Grade 7		732
Not risk rated		48

Total	$	51,661


	Single-family residential revolving, open end loans		Single-family residential closed end, first lien		Single-family residential closed end, junior lien		Total single-family residential loans
Performing	$	58,935	$	99,080	$	4,608	$	162,623
Nonperforming		816		4,442		299		5,557

Total	$	59,751	$	103,522	$	4,907	$	168,180


	Credit cards		Consumer-other		Total consumer
Performing	$	—	$	50,310	$	50,310
Nonperforming		17		247		264

Total	$	17	$	50,557	$	50,574


	Other
Performing	$	9,429
Nonperforming		2

Total	$	9,431

The following table summarizes various internal credit quality indicators on gross loans and other loans held for sale, by class, at December 31, 2011 (in thousands).


	Construction, land development and other land loans		Multifamily residential		Nonfarm nonresidential		Commercial real estate in other loans held for sale		Total commercial real estate
Grade 1	$	—	$	—	$	—	$	—	$	—
Grade 2		—		—		457		—		457
Grade 3		8,295		3,252		100,265		—		111,812
Grade 4		13,601		945		126,961		—		141,507
Grade W		9,075		4,233		51,889		—		65,197
Grade 5		3,671		7,550		27,235		—		38,456
Grade 6		21,511		1,956		61,907		8,800		94,174
Grade 7		10,624		—		3,991		5,378		19,993
Not risk rated*		20,836		9		313		—		21,158

	$	87,613	$	17,945	$	373,018	$	14,178	$	492,754

Less: Commercial real estate included in other loans held for sale										(14,178	)

Total									$	478,576

Consumer real estate loans of $20.8 million, included within construction, land development, and other land loans, are not risk rated, in accordance with our policy.


	Commercial and industrial
Grade 1	$	2,966
Grade 2		459
Grade 3		11,380
Grade 4		22,253
Grade W		5,292
Grade 5		1,489
Grade 6		4,929
Grade 7		596
Not risk rated		17

Total	$	49,381


	Single-family residential revolving, open end loans		Single-family residential closed end, first lien		Single-family residential closed end, junior lien		Total single-family residential loans
Performing	$	58,128	$	111,623	$	6,482	$	176,233
Nonperforming		843		7,957		471		9,271

Total	$	58,971	$	119,580	$	6,953	$	185,504


	Credit cards		Consumer-other		Total consumer
Performing	$	179	$	52,103	$	52,282
Nonperforming		16		473		489

Total	$	195	$	52,576	$	52,771


	Other
Performing	$	7,326
Nonperforming		—

Total	$	7,326

The following table summarizes delinquencies, by class, at December 31, 2012 (in thousands).


	30-89 days past due		Greater than 90 days past due on nonaccrual			Total past due			Current		Total loans
Construction, land development and other land loans	$	175	$	5,467		$	5,642		$	61,257	$	66,899
Multifamily residential		245		—			245			11,414		11,659
Nonfarm nonresidential		4,574		3,732			8,306			372,348		380,654

Total commercial real estate		4,994		9,199			14,193			445,019		459,212


Single-family real estate, revolving, open end loans		245		816			1,061			58,690		59,751
Single-family real estate, closed end, first lien		1,441		4,442			5,883			97,639		103,522
Single-family real estate, closed end, junior lien		99		299			398			4,509		4,907

Total single-family residential		1,785		5,557			7,342			160,838		168,180


Commercial and industrial		395		826			1,221			50,440		51,661

Credit cards		—		17			17			—		17
All other consumer		405		247			652			49,905		50,557

Total consumer		405		264			669			49,905		50,574


Farmland		—		—			—			3,171		3,171
Obligations of states and political subdivisions of the U.S.		—		—			—			739		739
Other		1		2			3			5,518		5,521

Total other		1		2			3			9,428		9,431

Total loans		7,580		15,848			23,428			715,630		739,058

Less: other loans held for sale		—		(776	)		(776	)		—		(776	)

Total loans, gross	$	7,580	$	15,072		$	22,652		$	715,630	$	738,282

Additional interest income of $1.2 million would have been reported during 2012 had loans classified as nonaccrual during the period performed in accordance with their current contractual terms. The Company’s earnings did not include this interest income.

The following table summarizes delinquencies, by class, at December 31, 2011 (in thousands).


	30-89 days past due		Greater than 90 days past due on nonaccrual			Total past due			Current			Total loans
Construction, land development and other land loans	$	94	$	27,085		$	27,179		$	64,975		$	92,154
Multifamily residential		—		—			—			17,945			17,945
Nonfarm nonresidential		574		14,870			15,444			367,211			382,655

Total commercial real estate		668		41,955			42,623			450,131			492,754


Single-family real estate, revolving, open end loans		379		843			1,222			57,749			58,971
Single-family real estate, closed end, first lien		2,633		7,957			10,590			108,990			119,580
Single-family real estate, closed end, junior lien		145		471			616			6,337			6,953

Total single-family residential		3,157		9,271			12,428			173,076			185,504


Commercial and industrial		314		1,313			1,627			47,754			49,381

Credit cards		—		16			16			179			195
All other consumer		760		473			1,233			51,343			52,576

Total consumer		760		489			1,249			51,522			52,771


Farmland		—		—			—			3,513			3,513
Obligations of states and political subdivisions of the U.S.		—		—			—			903			903
Other		2		—			2			2,908			2,910

		2		—			2			7,324			7,326

Total loans		4,901		53,028			57,929			729,807			787,736

Less: other loans held for sale		—		(5,812	)		(5,812	)		(8,366	)		(14,178	)

Total loans, gross	$	4,901	$	47,216		$	52,117		$	721,441		$	773,558

Troubled Debt Restructurings. The following table summarizes the carrying balance of troubled debt restructurings at the dates indicated (in thousands).


	December 31, 2012						December 31, 2011
	Performing		Nonperforming		Total		Performing		Nonperforming		Total
Loans, gross	$	30,154	$	3,124	$	33,278	$	37,191	$	9,546	$	46,737
Other loans held for sale		—		—		—		8,366		—		8,366

Total troubled debt restructurings	$	30,154	$	3,124	$	33,278	$	45,557	$	9,546	$	55,103

The following table summarizes troubled debt restructurings removed from this classification during the periods indicated (dollars in thousands).


	For the years ended December 31,
	2012		2011
Carrying balance	$	6,018	$	1,152
Count		19		2

The following table summarizes, by class, loans that were modified resulting in troubled debt restructurings during the periods indicated (dollars in thousands).


	For the years ended December 31,
	2012						2011
	Number of loans		Pre- modification outstanding recorded investment		Post- modification outstanding recorded investment		Number of loans			Pre- modification outstanding recorded investment			Post- modification outstanding recorded investment
Construction, land development and other land loans		1	$	4,089	$	4,089		6		$	6,657		$	6,657
Nonfarm nonresidential		8		2,305		2,305		19			19,466			18,845

Total commercial real estate		9		6,394		6,394		25			26,123			25,502

Single-family real estate		4		715		715		21			1,964			1,964
Commercial and industrial		3		506		501		8			1,337			910
Consumer		—		—		—		3			44			44

Total loans		16	$	7,615	$	7,610		57		$	29,468		$	28,420

Less: other loans held for sale		—		—		—		(3	)		(11,250	)		(10,869	)

Loans, gross		16	$	7,615	$	7,610		54		$	18,218		$	17,551

The following table summarizes, by type of concession, loans that were modified resulting in troubled debt restructurings during the periods indicated (dollars in thousands).


	For the years ended December 31,
	2012						2011
	Number of loans		Pre- modification outstanding recorded investment		Post- modification outstanding recorded investment		Number of loans			Pre- modification outstanding recorded investment			Post- modification outstanding recorded investment
Rate concession		—	$	—	$	—		5		$	2,390		$	2,390
Term concession		6		5,047		5,047		28			11,589			11,162
Rate and term concessions		10		2,568		2,563		17			10,012			9,772
Rate, term and required principal paydown concessions		—		—		—		1			504			504
Required principal paydown concession		—		—		—		1			1,736			1,355
Other		—		—		—		5			3,237			3,237

Total loans		16	$	7,615	$	7,610		57		$	29,468		$	28,420

Less: other loans held for sale		—		—		—		(3	)		(11,250	)		(10,869	)

Loans, gross		16	$	7,615	$	7,610		54		$	18,218		$	17,551

The following table summarizes, by class, loans modified resulting in troubled debt restructurings within the previous 12-month period for which there was a payment default during the periods indicated (dollars in thousands).


	For the years ended December 31,
	2012				2011
	Number of loans		Recorded investment		Number of loans			Recorded investment
Commercial real estate
Nonfarm nonresidential		2	$	2,122		5		$	5,760
Single-family real estate, closed end		2		293		8			966
Commercial and industrial		—		—		6			619

Total loans		4	$	2,415		19		$	7,345

Less: other loans held for sale		—		—		(1	)		(2,979	)

Loans, gross		4	$	2,415		18		$	4,366

Impaired Loans. The following tables summarize the composition of impaired loans, including other loans held for sale, at the dates indicated (in thousands).


	December 31, 2012
	Performing troubled debt restructured loans		Nonperforming troubled debt restructured loans		Nonperforming other loans		Performing other loans		Total
Loans, gross	$	30,154	$	3,124	$	2,628	$	5,413	$	41,319
Other loans held for sale		—		—		776		—		776

Total impaired loans	$	30,154	$	3,124	$	3,404	$	5,413	$	42,095


	December 31, 2011
	Performing troubled debt restructured loans		Nonperforming troubled debt restructured loans		Nonperforming other loans		Total
Loans, gross	$	37,191	$	9,546	$	23,054	$	69,791
Other loans held for sale		8,366		—		5,812		14,178

Total impaired loans	$	45,557	$	9,546	$	28,866	$	83,969

The following table summarizes the composition of and information relative to impaired loans, by class, at December 31, 2012 (in thousands).


	Loans, gross						Other loans held for sale				Total loans
	Recorded investment		Unpaid principal balance		Related allowance		Recorded investment		Unpaid principal balance		Recorded investment		Unpaid principal balance		Related allowance
With no related allowance recorded:
Construction, land development and other land loans	$	3,732	$	16,005			$	776	$	9,072	$	4,508	$	25,077
Multifamily residential		—		—				—		—		—		—
Nonfarm nonresidential		18,012		24,275				—		—		18,012		24,275

Total commercial real estate		21,744		40,280				776		9,072		22,520		49,352

Single-family real estate, revolving, open end loans		—		—				—		—		—		—
Single-family real estate, closed end, first lien		1,963		6,408				—		—		1,963		6,408
Single-family real estate, closed end, junior lien		31		31				—		—		31		31

Total single-family residential		1,994		6,439				—		—		1,994		6,439


Commercial and industrial		674		1,101				—		—		674		1,101

Consumer		18		18								18		18

Total impaired loans with no related allowance recorded	$	24,430	$	47,838			$	776	$	9,072	$	25,206	$	56,910

With an allowance recorded:
Construction, land development and other land loans	$	254	$	254	$	68					$	254	$	254	$	68
Multifamily residential		246		246		76						246		246		76
Nonfarm nonresidential		14,309		14,309		2,055						14,309		14,309		2,055

Total commercial real estate		14,809		14,809		2,199						14,809		14,809		2,199

Single-family real estate, revolving, open end loans		404		404		—						404		404		—
Single-family real estate, closed end, first lien		707		707		54						707		707		54
Single-family real estate, closed end, junior lien		173		173		162						173		173		162

Total single-family residential		1,284		1,284		216						1,284		1,284		216


Commercial and industrial		776		776		58						776		776		58

Consumer		20		20		4						20		20		4

Total impaired loans with an allowance recorded	$	16,889	$	16,889	$	2,477					$	16,889	$	16,889	$	2,477

Total:
Construction, land development and other land loans	$	3,986	$	16,259	$	68	$	776	$	9,072	$	4,762	$	25,331	$	68
Multifamily residential		246		246		76		—		—		246		246		76
Nonfarm nonresidential		32,321		38,584		2,055		—		—		32,321		38,584		2,055

Total commercial real estate		36,553		55,089		2,199		776		9,072		37,329		64,161		2,199

Single-family real estate, revolving, open end loans		404		404		—		—		—		404		404		—
Single-family real estate, closed end, first lien		2,670		7,115		54		—		—		2,670		7,115		54
Single-family real estate, closed end, junior lien		204		204		162		—		—		204		204		162

Total single-family residential		3,278		7,723		216		—		—		3,278		7,723		216


Commercial and industrial		1,450		1,877		58		—		—		1,450		1,877		58

Consumer		38		38		4		—		—		38		38		4

Total impaired loans	$	41,319	$	64,727	$	2,477	$	776	$	9,072	$	42,095	$	73,799	$	2,477

Interest income recognized on impaired loans during the year ended December 31, 2012 was $1.8 million. The average balance of total impaired loans was $62.4 million for the same period.

The following table summarizes the composition of and information relative to impaired loans, by class, at December 31, 2011 (in thousands).


	Loans, gross						Other loans held for sale				Total loans
	Recorded investment		Unpaid principal balance		Related allowance		Recorded investment		Unpaid principal balance		Recorded investment		Unpaid principal balance		Related allowance
With no related allowance recorded:
Construction, land development and other land loans	$	16,845	$	36,735			$	4,541	$	16,799	$	21,386	$	53,534
Multifamily residential		—		—				—		—		—		—
Nonfarm nonresidential		16,047		22,188				9,637		13,831		25,684		36,019

Total commercial real estate		32,892		58,923				14,178		30,630		47,070		89,553

Single-family real estate, revolving, open end loans		—		—				—		—		—		—
Single-family real estate, closed end, first lien		2,742		6,928				—		—		2,742		6,928
Single-family real estate, closed end, junior lien		—		—				—		—		—		—

Total single-family residential		2,742		6,928				—		—		2,742		6,928


Commercial and industrial		886		1,312				—		—		886		1,312

Total impaired loans with no related allowance recorded	$	36,520	$	67,163			$	14,178	$	30,630	$	50,698	$	97,793

With an allowance recorded:
Construction, land development and other land loans	$	9,702	$	11,624	$	3,301					$	9,702	$	11,624	$	3,301
Multifamily residential		247		247		9						247		247		9
Nonfarm nonresidential		20,784		20,784		2,886						20,784		20,784		2,886

Total commercial real estate		30,733		32,655		6,196						30,733		32,655		6,196

Single-family real estate, revolving, open end loans		—		—		—						—		—		—
Single-family real estate, closed end, first lien		1,689		1,689		161						1,689		1,689		161
Single-family real estate, closed end, junior lien		183		183		54						183		183		54

Total single-family residential		1,872		1,872		215						1,872		1,872		215


Commercial and industrial		622		691		88						622		691		88

Consumer		44		44		6						44		44		6

Total impaired loans with an allowance recorded	$	33,271	$	35,262	$	6,505					$	33,271	$	35,262	$	6,505

Total:
Construction, land development and other land loans	$	26,547	$	48,359	$	3,301	$	4,541	$	16,799	$	31,088	$	65,158	$	3,301
Multifamily residential		247		247		9		—		—		247		247		9
Nonfarm nonresidential		36,831		42,972		2,886		9,637		13,831		46,468		56,803		2,886

Total commercial real estate		63,625		91,578		6,196		14,178		30,630		77,803		122,208		6,196

Single-family real estate, revolving, open end loans		—		—		—		—		—		—		—		—
Single-family real estate, closed end, first lien		4,431		8,617		161		—		—		4,431		8,617		161
Single-family real estate, closed end, junior lien		183		183		54		—		—		183		183		54

Total single-family residential		4,614		8,800		215		—		—		4,614		8,800		215


Commercial and industrial		1,508		2,003		88		—		—		1,508		2,003		88

Consumer		44		44		6		—		—		44		44		6

Total impaired loans	$	69,791	$	102,425	$	6,505	$	14,178	$	30,630	$	83,969	$	133,055	$	6,505

Allowance for Loan Losses

The following tables summarize the allowance for loan losses and recorded investment in gross loans, by portfolio segment, at the dates and for the periods indicated (in thousands).


	At and for the year ended December 31, 2012
	Commercial real estate		Single-family residential		Commercial and industrial			Consumer		Other		Total
Allowance for loan losses:
Allowance for loan losses, beginning of period	$	18,026	$	4,488	$	1,862		$	1,209	$	11	$	25,596
Provision for loan losses		11,630		1,318		(390	)		277		240		13,075
Loan charge-offs		17,548		3,314		376			586		696		22,520
Loan recoveries		209		648		168			193		456		1,674

Net loans charged-off		17,339		2,666		208			393		240		20,846

Allowance for loan losses, end of period	$	12,317	$	3,140	$	1,264		$	1,093	$	11	$	17,825


Individually evaluated for impairment	$	2,199	$	216	$	58		$	4	$	—	$	2,477
Collectively evaluated for impairment		10,118		2,924		1,206			1,089		11		15,348

Allowance for loan losses, end of period	$	12,317	$	3,140	$	1,264		$	1,093	$	11	$	17,825

Loans, gross, end of period:
Individually evaluated for impairment	$	36,553	$	3,278	$	1,450		$	38	$	—	$	41,319
Collectively evaluated for impairment		421,883		164,902		50,211			50,536		9,431		696,963

Total loans, gross	$	458,436	$	168,180	$	51,661		$	50,574	$	9,431	$	738,282


	At and for the year ended December 31, 2011
	Commercial real estate		Single-family residential		Commercial and industrial			Consumer		Other		Total
Allowance for loan losses:
Allowance for loan losses, beginning of period	$	18,979	$	4,061	$	2,492		$	1,375	$	27	$	26,934
Provision for loan losses		15,478		3,441		827			498		256		20,500
Loan charge-offs		16,532		3,070		1,572			810		848		22,832
Loan recoveries		101		56		115			146		576		994

Net loans charged-off		16,431		3,014		1,457			664		272		21,838

Allowance for loan losses, end of period	$	18,026	$	4,488	$	1,862		$	1,209	$	11	$	25,596


Individually evaluated for impairment	$	6,196	$	215	$	88		$	6	$	—	$	6,505
Collectively evaluated for impairment		11,830		4,273		1,774			1,203		11		19,091

Allowance for loan losses, end of period	$	18,026	$	4,488	$	1,862		$	1,209	$	11	$	25,596

Loans, gross, end of period:
Individually evaluated for impairment	$	63,625	$	4,614	$	1,508		$	44	$	—	$	69,791
Collectively evaluated for impairment		414,951		180,890		47,873			52,727		7,326		703,767

Total loans, gross	$	478,576	$	185,504	$	49,381		$	52,771	$	7,326	$	773,558