Loans

The composition of the loan portfolio, by class of loan, as of September 30, 2013 and December 31, 2012 was as follows:



	September 30, 2013						December 31, 2012
(In thousands)	Loan balance		Accrued interest receivable		Recorded investment		Loan balance		Accrued interest receivable		Recorded investment
Commercial, financial and agricultural *	$	806,864	$	3,236	$	810,100	$	823,927	$	2,976	$	826,903
Commercial real estate *	1,115,226		3,888		1,119,114		1,092,164		3,839		1,096,003
Construction real estate:
SEPH commercial land and development *	7,611		14		7,625		15,105		37		15,142
Remaining commercial	103,866		256		104,122		115,473		331		115,804
Mortgage	27,516		77		27,593		26,373		81		26,454
Installment	7,424		25		7,449		8,577		33		8,610
Residential real estate:
Commercial	401,894		907		402,801		392,203		959		393,162
Mortgage	1,135,632		1,789		1,137,421		1,064,787		1,399		1,066,186
HELOC	212,289		816		213,105		212,905		892		213,797
Installment	36,131		137		36,268		43,750		176		43,926
Consumer	715,763		2,564		718,327		651,930		2,835		654,765
Leases	3,321		49		3,370		3,128		29		3,157
Total loans	$	4,573,537	$	13,758	$	4,587,295	$	4,450,322	$	13,587	$	4,463,909

* Included within commercial, financial and agricultural loans, commercial real estate loans, and SEPH commercial land and development loans is an immaterial amount of consumer loans that are not broken out by class.

Credit Quality

The following tables present the recorded investment in nonaccrual loans, accruing troubled debt restructurings, and loans past due 90 days or more and still accruing by class of loan as of September 30, 2013 and December 31, 2012:



	September 30, 2013
(In thousands)	Nonaccrual loans		Accruing troubled debt restructurings		Loans past due 90 days or more and accruing		Total nonperforming loans
Commercial, financial and agricultural	$	16,965	$	2,916	$	—	$	19,881
Commercial real estate	38,405		2,604		204		41,213
Construction real estate:
SEPH commercial land and development	6,517		—		—		6,517
Remaining commercial	13,130		2,476		—		15,606
Mortgage	75		98		—		173
Installment	39		182		—		221
Residential real estate:
Commercial	33,343		1,134		—		34,477
Mortgage	21,607		11,434		711		33,752
HELOC	1,863		879		—		2,742
Installment	943		989		3		1,935
Consumer	3,583		1,761		778		6,122
Total loans	$	136,470	$	24,473	$	1,696	$	162,639



	December 31, 2012
(In thousands)	Nonaccrual loans		Accruing troubled debt restructurings		Loans past due 90 days or more and accruing		Total nonperforming loans
Commercial, financial and agricultural	$	17,324	$	5,277	$	37	$	22,638
Commercial real estate	40,983		3,295		1,007		45,285
Construction real estate:
SEPH commercial land and development	13,939		—		—		13,939
Remaining commercial	14,977		6,597		—		21,574
Mortgage	158		100		—		258
Installment	149		175		—		324
Residential real estate:
Commercial	33,961		1,661		94		35,716
Mortgage	28,260		9,425		950		38,635
HELOC	1,689		736		—		2,425
Installment	1,670		780		54		2,504
Consumer	2,426		1,900		888		5,214
Total loans	$	155,536	$	29,946	$	3,030	$	188,512

The following table provides additional information regarding those nonaccrual and accruing troubled debt restructured loans that were individually evaluated for impairment and those collectively evaluated for impairment as of September 30, 2013 and December 31, 2012.



	September 30, 2013						December 31, 2012
(In thousands)	Nonaccrual and accruing troubled debt restructurings		Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Nonaccrual and accruing troubled debt restructurings		Loans individually evaluated for impairment		Loans collectively evaluated for impairment
Commercial, financial and agricultural	$	19,881	$	19,871	$	10	$	22,601	$	22,587	$	14
Commercial real estate	41,009		41,009		—		44,278		44,278		—
Construction real estate:
SEPH commercial land and development	6,517		6,489		28		13,939		13,260		679
Remaining commercial	15,606		15,606		—		21,574		21,574		—
Mortgage	173		—		173		258		—		258
Installment	221		—		221		324		—		324
Residential real estate:
Commercial	34,477		34,477		—		35,622		35,622		—
Mortgage	33,041		—		33,041		37,685		—		37,685
HELOC	2,742		—		2,742		2,425		—		2,425
Installment	1,932		—		1,932		2,450		—		2,450
Consumer	5,344		799		4,545		4,326		18		4,308
Total loans	$	160,943	$	118,251	$	42,692	$	185,482	$	137,339	$	48,143

All of the loans individually evaluated for impairment were evaluated using the fair value of the underlying collateral or the present value of expected future cash flows as the measurement method.

The following table presents loans individually evaluated for impairment by class of loan as of September 30, 2013 and December 31, 2012.



	September 30, 2013						December 31, 2012
(In thousands)	Unpaid principal balance		Recorded investment		Allowance for loan losses allocated		Unpaid principal balance		Recorded investment		Allowance for loan losses allocated
With no related allowance recorded:
Commercial, financial and agricultural	$	25,979	$	15,556	$	—	$	23,782	$	14,683	$	—
Commercial real estate	56,433		33,657		—		56,258		35,097		—
Construction real estate:
SEPH commercial land and development	31,362		6,489		—		56,075		12,740		—
Remaining commercial	25,349		11,380		—		29,328		14,093		—
Residential real estate:
Commercial	38,888		32,356		—		39,918		31,957		—
Consumer	799		799		—		18		18		—

With an allowance recorded:
Commercial, financial and agricultural	8,602		4,315		1,728		12,268		7,904		3,180
Commercial real estate	7,425		7,352		5,906		11,412		9,181		1,540
Construction real estate:
SEPH commercial land and development	—		—		—		1,271		520		—
Remaining commercial	4,267		4,226		1,221		8,071		7,481		2,277
Residential real estate:
Commercial	2,471		2,121		442		3,944		3,665		1,279
Consumer	—		—		—		—		—		—
Total	$	201,575	$	118,251	$	9,297	$	242,345	$	137,339	$	8,276

Management’s general practice is to proactively charge down loans individually evaluated for impairment to the fair value of the underlying collateral. At September 30, 2013 and December 31, 2012, there were $78.5 million and $96.9 million, respectively, of partial charge-offs on loans individually evaluated for impairment with no related allowance recorded and $4.8 million and $8.2 million, respectively, of partial charge-offs on loans individually evaluated for impairment that also had a specific reserve allocated.

The allowance for loan losses included specific reserves related to loans individually evaluated for impairment at September 30, 2013 and December 31, 2012 of $9.3 million and $8.3 million, respectively. These loans with specific reserves had a recorded investment of $18.0 million and $28.8 million as of September 30, 2013 and December 31, 2012, respectively.

Interest income on loans individually evaluated for impairment is recognized on a cash basis. The following table presents the average recorded investment and interest income recognized on loans individually evaluated for impairment as of and for the three and nine months ended September 30, 2013 and September 30, 2012:



	Three Months Ended September 30, 2013						Three Months Ended September 30, 2012
(In thousands)	Recorded investment as of September 30, 2013		Average recorded investment		Interest income recognized		Recorded investment as of September 30, 2012		Average recorded investment		Interest income recognized
Commercial, financial and agricultural	$	19,871	$	20,803	$	124	$	22,103	$	35,720	$	100
Commercial real estate	41,009		41,417		329		42,978		43,499		351
Construction real estate:
SEPH commercial land and development	6,489		7,579		—		13,261		14,991		—
Remaining commercial	15,606		17,249		136		27,418		28,400		411
Residential real estate:
Commercial	34,477		34,860		115		36,583		37,121		233
Consumer	799		799		—		19		19		—
Total	$	118,251	$	122,707	$	704	$	142,362	$	159,750	$	1,095



	Nine Months Ended September 30, 2013						Nine Months Ended September 30, 2012
(In thousands)	Recorded investment as of September 30, 2013		Average recorded investment		Interest income recognized		Recorded investment as of September 30, 2012		Average recorded investment		Interest income recognized
Commercial, financial and agricultural	$	19,871	$	21,182	$	334	$	22,103	$	38,989	$	410
Commercial real estate	41,009		41,642		844		42,978		45,026		845
Construction real estate:
SEPH commercial land and development	6,489		9,722		—		13,261		18,481		—
Remaining commercial	15,606		19,118		548		27,418		28,633		861
Residential real estate:
Commercial	34,477		35,531		357		36,583		40,199		398
Consumer	799		561		—		19		19		1
Total	$	118,251	$	127,756	$	2,083	$	142,362	$	171,347	$	2,515

The following tables present the aging of the recorded investment in past due loans as of September 30, 2013 and December 31, 2012 by class of loan.



	September 30, 2013
(In thousands)	Accruing loans past due 30-89 days		Past due nonaccrual loans and loans past due 90 days or more and accruing*		Total past due		Total current		Total recorded investment
Commercial, financial and agricultural	$	3,004	$	13,424	$	16,428	$	793,672	$	810,100
Commercial real estate	421		16,980		17,401		1,101,713		1,119,114
Construction real estate:
SEPH commercial land and development	—		5,540		5,540		2,085		7,625
Remaining commercial	396		4,463		4,859		99,263		104,122
Mortgage	234		75		309		27,284		27,593
Installment	99		15		114		7,335		7,449
Residential real estate:
Commercial	339		4,675		5,014		397,787		402,801
Mortgage	12,750		11,817		24,567		1,112,854		1,137,421
HELOC	636		501		1,137		211,968		213,105
Installment	429		239		668		35,600		36,268
Consumer	10,143		3,832		13,975		704,352		718,327
Leases	—		—		—		3,370		3,370
Total loans	$	28,451	$	61,561	$	90,012	$	4,497,283	$	4,587,295

* Includes $1.7 million of loans past due 90 days or more and accruing. The remaining are past due, nonaccrual loans and accruing troubled debt restructurings.



	December 31, 2012
(in thousands)	Accruing loans past due 30-89 days		Past due nonaccrual loans and loans past due 90 days or more and accruing*		Total past due		Total current		Total recorded investment
Commercial, financial and agricultural	$	6,251	$	11,811	$	18,062	$	808,841	$	826,903
Commercial real estate	2,212		26,355		28,567		1,067,436		1,096,003
Construction real estate:
SEPH commercial land and development	686		11,314		12,000		3,142		15,142
Remaining commercial	3,652		5,838		9,490		106,314		115,804
Mortgage	171		85		256		26,198		26,454
Installment	135		40		175		8,435		8,610
Residential real estate:
Commercial	1,163		5,917		7,080		386,082		393,162
Mortgage	11,948		17,370		29,318		1,036,868		1,066,186
HELOC	620		309		929		212,868		213,797
Installment	563		787		1,350		42,576		43,926
Consumer	12,924		2,688		15,612		639,153		654,765
Leases	—		—		—		3,157		3,157
Total loans	$	40,325	$	82,514	$	122,839	$	4,341,070	$	4,463,909

* Includes $3.0 million of loans past due 90 days or more and accruing. The remaining are past due, nonaccrual loans and accruing troubled debt restructurings.

Credit Quality Indicators

Management utilizes past due information as a credit quality indicator across the loan portfolio. Past due information as of September 30, 2013 and December 31, 2012 is included in the tables above. The past due information is the primary credit quality indicator within the following classes of loans: (1) mortgage loans and installment loans in the construction real estate segment; (2) mortgage loans, HELOC and installment loans in the residential real estate segment; and (3) consumer loans. The primary credit indicator for commercial loans is based on an internal grading system that grades all commercial loans from 1 to 8. Credit grades are continuously monitored by the respective loan officer and adjustments are made when appropriate. A grade of 1 indicates little or no credit risk and a grade of 8 is considered a loss. Commercial loans with grades of 1 to 4.5 (pass-rated) are considered to be of acceptable credit risk. Commercial loans graded a 5 (special mention) are considered to be watch list credits and a higher loan loss reserve percentage is allocated to these loans. Loans classified as special mention have potential weaknesses that require management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Commercial loans graded 6 (substandard), also considered watch list credits, are considered to represent higher credit risk and, as a result, a higher loan loss reserve percentage is allocated to these loans. Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the obligor or the value of the collateral pledged, if any. Loans so classified have a well defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that Park will sustain some loss if the deficiencies are not corrected. Commercial loans that are graded a 7 (doubtful) are shown as nonaccrual and Park generally charges these loans down to their fair value by taking a partial charge-off or recording a specific reserve. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Certain 6-rated loans and all 7-rated loans are included within the impaired category. A loan is deemed impaired when management determines the borrower's ability to perform in accordance with the contractual loan agreement is in doubt. Any commercial loan graded an 8 (loss) is completely charged off.

The tables below present the recorded investment by loan grade at September 30, 2013 and December 31, 2012 for all commercial loans:



	September 30, 2013
(In thousands)	5 Rated		6 Rated		Impaired		Pass Rated		Recorded Investment
Commercial, financial and agricultural *	$	18,956	$	710	$	19,881	$	770,553	$	810,100
Commercial real estate *	16,975		1,047		41,009		1,060,083		1,119,114
Construction real estate:
SEPH commercial land and development *	370		—		6,517		738		7,625
Remaining commercial	4,818		2		15,606		83,696		104,122
Residential real estate:
Commercial	7,738		555		34,477		360,031		402,801
Leases	—		—		—		3,370		3,370
Total Commercial Loans	$	48,857	$	2,314	$	117,490	$	2,278,471	$	2,447,132



	December 31, 2012
(In thousands)	5 Rated		6 Rated		Impaired		Pass Rated		Recorded Investment
Commercial, financial and agricultural *	$	9,537	$	10,874	$	22,601	$	783,891	$	826,903
Commercial real estate *	25,616		3,960		44,278		1,022,149		1,096,003
Construction real estate:
SEPH commercial land and development *	411		—		13,939		792		15,142
Remaining commercial	6,734		—		21,574		87,496		115,804
Residential real estate:
Commercial	8,994		2,053		35,622		346,493		393,162
Leases	—		—		—		3,157		3,157
Total Commercial Loans	$	51,292	$	16,887	$	138,014	$	2,243,978	$	2,450,171

Troubled Debt Restructurings (TDRs)

Management classifies loans as TDRs when a borrower is experiencing financial difficulties and Park has granted a concession to the borrower as part of a modification or in the loan renewal process. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of the borrower's debt in the foreseeable future without the modification. This evaluation is performed in accordance with the Company’s internal underwriting policy. Management’s policy is to modify loans by extending the term or by granting a temporary or permanent contractual interest rate below the market rate, not by forgiving debt. Certain loans which were modified during the period ended September 30, 2013 did not meet the definition of a TDR as the modification was a delay in a payment that was considered to be insignificant. Management considers a forbearance period of up to three months or a delay in payment of up to 30 days to be insignificant. TDRs may be classified as accruing if the borrower has been current for a period of at least six months with respect to loan payments and management expects that the borrower will be able to continue to make payments in accordance with the terms of the restructured note. Management reviews all accruing TDRs quarterly to ensure payments continue to be made in accordance with the modified terms.

Management reviews renewals/modifications of loans previously identified as TDRs to consider if it is appropriate to remove the TDR classification. If the borrower is no longer experiencing financial difficulty and the renewal/modification does not contain a concessionary interest rate or other concessionary terms, management considers the potential removal of the TDR classification. If deemed appropriate, the TDR classification is removed as the borrower has complied with the terms of the loan at the date of the renewal/modification and there was a reasonable expectation that the borrower would continue to comply with the terms of the loan subsequent to the date of the renewal/modification. The majority of these TDRs were originally considered restructurings in a prior year as a result of a modification with an interest rate that was not commensurate with the risk of the underlying loan. During the three-month and nine-month periods ended September 30, 2013, Park removed the TDR classification on $728,000 and $3.6 million, respectively, of loans that met the requirements discussed above.

At September 30, 2013 and December 31, 2012, there were $78.5 million and $84.7 million, respectively, of TDRs included in nonaccrual loan totals. At September 30, 2013 and December 31, 2012, $57.2 million and $52.6 million of these nonaccrual TDRs were performing in accordance with the terms of the restructured note. As of September 30, 2013 and December 31, 2012, there were $24.5 million and $29.9 million, respectively, of TDRs included in accruing loan totals. Management will continue to review the restructured loans and may determine it appropriate to move certain of the loans back to accrual status in the future. At September 30, 2013 and December 31, 2012, Park had commitments to lend $6.9 million and $5.0 million, respectively, of additional funds to borrowers whose outstanding loan terms had been modified in a TDR.

The specific reserve related to TDRs at September 30, 2013 and December 31, 2012 was $7.7 million and $5.6 million, respectively. Modifications made in 2012 and 2013 were largely the result of renewals, extending the maturity date of the loan, at terms consistent with the original note. These modifications were deemed to be TDRs primarily due to Park’s conclusion that the borrower would likely not have qualified for similar terms through another lender. Many of the modifications deemed to be TDRs were previously identified as impaired loans, and thus were also previously evaluated for impairment under ASC 310. Additional specific reserves of $474,000 and $745,000 were recorded during the three-month and nine-month periods ending September 30, 2013, respectively, as a result of TDRs identified in the 2013 year. Additional specific reserves of $167,000 and $1.2 million were recorded during the three-month and nine-month periods ending September 30, 2012, respectively, as a result of TDRs identified in the 2012 year.

The terms of certain other loans were modified during the nine-month periods ended September 30, 2013 and September 30, 2012 that did not meet the definition of a TDR. Modified substandard commercial loans which did not meet the definition of a TDR had a total recorded investment as of September 30, 2013 and September 30, 2012 of $541,000 and $2.1 million, respectively. The modification of these loans: (1) involved a modification of the terms of a loan to a borrower who was not experiencing financial difficulties, (2) resulted in a delay in a payment that was considered to be insignificant, or (3) resulted in Park obtaining additional collateral or guarantees that improved the likelihood of the ultimate collection of the loan such that the modification was deemed to be at market terms. Modified consumer loans which did not meet the definition of a TDR had a total recorded investment as of September 30, 2013 and September 30, 2012 of $19.6 million and $20.5 million, respectively. Many of these loans were to borrowers who were not experiencing financial difficulties but who were looking to reduce their cost of funds.

The following tables detail the number of contracts modified as TDRs during the three-month and nine-month periods ended September 30, 2013 and September 30, 2012, as well as the recorded investment of these contracts at September 30, 2013 and September 30, 2012. The recorded investment pre- and post-modification is generally the same due to the fact that Park does not typically provide for forgiveness of principal.



	Three Months Ended September 30, 2013
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Total Recorded Investment
Commercial, financial and agricultural	7	$	2,806	$	678	$	3,484
Commercial real estate	9	—		5,671		5,671
Construction real estate:
SEPH commercial land and development	—	—		—		—
Remaining commercial	—	—		—		—
Mortgage	—	—		—		—
Installment	1	15		—		15
Residential real estate:
Commercial	—	—		—		—
Mortgage	8	120		393		513
HELOC	6	129		—		129
Installment	5	52		41		93
Consumer	76	419		208		627
Total loans	112	$	3,541	$	6,991	$	10,532



	Three Months Ended September 30, 2012
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Total Recorded Investment
Commercial, financial and agricultural	12	$	121	$	418	$	539
Commercial real estate	2	—		257		257
Construction real estate:
SEPH commercial land and development	2	—		60		60
Remaining commercial	3	—		369		369
Mortgage	2	101		85		186
Installment	6	177		97		274
Residential real estate:
Commercial	5	—		610		610
Mortgage	82	3,780		2,000		5,780
HELOC	43	718		143		861
Installment	48	675		271		946
Consumer	526	2,047		895		2,942
Total loans	731	$	7,619	$	5,205	$	12,824

Of those loans which were modified during the three-month period ended September 30, 2013, $751,000 were on nonaccrual status as of December 31, 2012, but were not classified as TDRs. Of those loans which were modified during the three-month period ended September 30, 2012, $1.2 million were on nonaccrual status as of December 31, 2011, but were not classified as TDRs.



	Nine Months Ended September 30, 2013
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Total Recorded Investment
Commercial, financial and agricultural	21	$	2,813	$	1,052	$	3,865
Commercial real estate	16	—		6,635		6,635
Construction real estate:
SEPH commercial land and development	—	—		—		—
Remaining commercial	2	403		—		403
Mortgage	—	—		—		—
Installment	3	15		24		39
Residential real estate:
Commercial	14	—		2,574		2,574
Mortgage	41	1,513		1,616		3,129
HELOC	13	222		—		222
Installment	12	118		75		193
Consumer	251	754		287		1,041
Total loans	373	$	5,838	$	12,263	$	18,101



	Nine Months Ended September 30, 2012
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Total Recorded Investment
Commercial, financial and agricultural	28	$	2,195	$	1,910	$	4,105
Commercial real estate	22	1,823		3,432		5,255
Construction real estate:
SEPH commercial land and development	6	—		887		887
Remaining commercial	13	3,695		6,561		10,256
Mortgage	2	101		85		186
Installment	6	177		97		274
Residential real estate:
Commercial	10	—		871		871
Mortgage	97	4,006		4,361		8,367
HELOC	43	718		143		861
Installment	51	675		440		1,115
Consumer	527	2,138		895		3,033
Total loans	805	$	15,528	$	19,682	$	35,210

Of those loans which were modified during the nine-month period ended September 30, 2013, $3.2 million were on nonaccrual status as of December 31, 2012, but were not classified as TDRs. Of those loans which were modified during the nine-month period ended September 30, 2012, $7.2 million were on nonaccrual status as of December 31, 2011, but were not classified as TDRs.

The following table presents the recorded investment in financing receivables which were modified as TDRs within the previous 12 months and for which there was a payment default during the three-month and nine-month periods ended September 30, 2013 and September 30, 2012, respectively. For this table, a loan is considered to be in default when it becomes 30 days contractually past due under the modified terms. The additional allowance for loan loss resulting from the defaults on TDR loans was immaterial.



	Three Months Ended September 30, 2013			Three Months Ended September 30, 2012
(In thousands)	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
Commercial, financial and agricultural	7	$	554	10	$	4,800
Commercial real estate	4	634		6	1,224
Construction real estate:
SEPH commercial land and development	—	—		6	2,435
Remaining commercial	—	—		6	2,172
Mortgage	—	—		1	85
Installment	—	—		1	16
Residential real estate:
Commercial	3	2,293		4	1,201
Mortgage	21	1,645		32	2,657
HELOC	—	—		8	92
Installment	7	149		8	227
Consumer	58	328		129	796
Leases	—	—		—	—
Total loans	100	$	5,603	211	$	15,705

Of the $5.6 million in modified TDRs which defaulted during the three months ended September 30, 2013, $376,000 were accruing loans and $5.2 million were nonaccrual loans. Of the $15.7 million in modified TDRs which defaulted during the three months ended September 30, 2012, $91,000 were accruing loans and $15.6 million were nonaccrual loans.



	Nine Months Ended September 30, 2013			Nine Months Ended September 30, 2012
(In thousands)	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
Commercial, financial and agricultural	12	$	977	13	$	4,935
Commercial real estate	5	670		7	1,936
Construction real estate:
SEPH commercial land and development	1	14		6	2,435
Remaining commercial	—	—		7	2,275
Mortgage	—	—		1	85
Installment	1	11		2	43
Residential real estate:
Commercial	9	2,906		4	1,201
Mortgage	25	2,024		36	3,016
HELOC	—	—		9	104
Installment	7	149		10	312
Consumer	68	411		154	898
Leases	—	—		—	—
Total loans	128	$	7,162	249	$	17,240

Of the $7.2 million in modified TDRs which defaulted during the nine months ended September 30, 2013, $496,000 were accruing loans and $6.7 million were nonaccrual loans. Of the $17.2 million in modified TDRs which defaulted during the nine months ended September 30, 2012, $362,000 were accruing loans and $16.9 million were nonaccrual loans.