Loans Held for Investment

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements

Loans Held for Investment

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

	2011		2010
Real Estate
Construction	$	71,085	$	79,337
Residential		208,230		202,420
Commercial and agricultural		157,437		141,253
Consumer loans to individuals		13,227		19,042
Credit cards		2,710		2,771
Other		69		324
Total	$	452,758	$	445,147

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

			Unpaid				Average		Interest
September 30, 2011	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
Impaired loans without a valuation allowance
Real Estate	$	4,624	$	4,624	$	-	$	4,468	$	177
Commercial		1,428		1,428		-		1,142		26
Home Equity		653		653		-		704		21
Other		147		147		-		236		7
		6,852		6,852		-		6,550		231
Impaired loans with a valuation allowance
Real Estate		6,047		6,047		673		6,053		207
Commercial		688		688		309		1,319		-
Home Equity		155		155		3		306		12
		6,890		6,890		985		7,678		219
Total impaired loans	$	13,742	$	13,742	$	985	$	14,228	$	450

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