At December 31, 2012 and 2011, loans included the following: (in thousands)

	December 31,			December 31,
	2012			2011
Commercial and industrial	$	168,709		$	206,652
Commercial real estate		369,271			428,646
Real estate construction		15,469			49,704
Residential mortgages (1st and 2nd liens)		146,575			160,619
Home equity		66,468			79,684
Consumer and other loans		14,288			44,349
Gross Loans		780,780			969,654
Allowance for loan losses		(17,781	)		(39,958	)
Net loans at end of period	$	762,999		$	929,696