Loans

6 Months Ended

Jun. 30, 2012

Loans [Abstract]

Loans

Note E –Loans

The following summarizes the Company’s major classifications for loans:

( In thousands)	June 30, 2012	December 31, 2011
Residential real estate	$997,016	$929,788
Home equity – junior liens (including lines of credit)	143,400	141,797
Commercial and industrial	116,288	130,899
Commercial real estate	768,176	732,146
Consumer	37,383	35,845
DDA overdrafts	3,326	2,628
Gross loans	2,065,589	1,973,103
Allowance for loan losses	(19,452)	(19,409)
Net loans	$2,046,137	$1,953,694

Construction loans of $11.9 million and $9.2 million are included within residential real estate loans at June 30, 2012 and December 31, 2011, respectively.Construction loans of $18.5 million and $20.2 million are included within commercial real estate loans at June 30, 2012 and December 31, 2011, respectively.The Company’s commercial and residential real estate construction loans are primarily secured by real estate within the Company’s principal markets.These loans were originated under the Company’s loan policy, which is focused on the risk characteristics of the loan portfolio, including construction loans.Adequate consideration has been given to these loans in establishing the Company’s allowance for loan losses.

The composition of loans acquired in the VSB acquisition outstanding at June 30, 2012 is as follows:

	June 30, 2012
Residential real estate	$41,942
Home equity – junior liens (including lines of credit)	3,082
Commercial and industrial	2,531
Commercial real estate	21,226
Consumer	3,198
Gross loans	$71,979