Loans Held for Investment

6 Months Ended

Jun. 30, 2011

Loans Held for Investment

Note 3. Loans Held for Investment

Loans outstanding at June 30, 2011 and December 31, 2010 are summarized as follows:

	2011		2010
Real Estate
Construction	$	73,509	$	79,337
Residential		203,214		202,420
Commercial and agricultural		164,137		141,253
Consumer loans to individuals		15,343		19,042
Credit cards		2,672		2,771
Other		55		324
Total	$	458,930	$	445,147

The following is a summary of information pertaining to impaired loans (in thousands):

			Unpaid				Average		Interest
June 30, 2011	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
Impaired loans without a valuation allowance
Real Estate	$	3,683	$	3,683	$	—	$	3,579	$	97
Commercial		784		784		—		870		18
Home Equity		626		626		—		587		12
Other		159		159		—		247		5
		5,252		5,252		—		5,283		132
Impaired loans with a valuation allowance
Real Estate		5,915		5,915		997		4,944		129
Commercial		159		159		40		2,313		—
Home Equity		368		368		84		344		—
Other		806		806		325		374		—
		7,248		7,248		1,446		7,975		129
Total impaired loans	$	12,500	$	12,500	$	1,446	$	13,258	$	261

The Recorded Investment is defined as the principal balance, net of deferred fees, less principal payments and charge-offs.

			Unpaid				Average		Interest
December 31, 2010	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
Impaired loans without a valuation allowance
Real Estate	$	5,680	$	5,680	$	—	$	2,015	$	84
Commercial		888		888		—		606		19
Home Equity		673		673		—		260		5
Other		247		247		—		292		—
		7,488		7,488		—		3,173		108
Impaired loans with a valuation allowance
Real Estate		6,942		6,942		1,003		2,881		211
Commercial		1,149		1,149		161		5,013		17
Home Equity		439		439		118		333		11
Other		7		7		1		5		12
		8,537		8,537		1,283		8,232		251
Total impaired loans	$	16,025	$	16,025	$	1,283	$	11,405	$	359