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648000 1444000 101000 FNB Bancorp/CA/ 10-Q --12-31 3514745 41584042 false 0001163199 Yes No Non-accelerated Filer No 2012 Q2 2012-06-30 <p> <b>NOTE A – BASIS OF PRESENTATION</b> </p><br/><p> FNB Bancorp (the “Company”) is a bank holding company registered under the Bank Holding Company Act of 1956, as amended. The Company was incorporated under the laws of the State of California on February 28, 2001. The consolidated financial statements include the accounts of FNB Bancorp and its wholly owned subsidiary, First National Bank of Northern California (the “Bank”). The Bank provides traditional banking services in San Mateo and San Francisco counties. </p><br/><p> All intercompany transactions and balances have been eliminated in consolidation. The financial statements include all adjustments of a normal and recurring nature, which are, in the opinion of management, necessary for a fair presentation of the financial position and of operationsresults for the interim periods presented, as required by Regulation S-X, Rule 10-01. </p><br/><p> The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and footnotes normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America. Accordingly, these financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2011. </p><br/><p> Results of operations for interim periods are not necessarily indicative of results for the full year. </p><br/> <p> NOTE B – STOCK OPTION PLANS </p><br/><p> Stock option expense is recorded based on the fair value of option contracts issued. The fair value is determined by the expected contract term, the risk free interest rate, the volatility of the Company’s stock price and the level of dividends the Company is expected to pay. </p><br/><p> The expected term of options granted is derived from historical plan behavior and represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U. S. Treasury yield curve in effect at the time of the grant. </p><br/><p> The amount of compensation expense for options recorded in the quarters ended June 30, 2012 and June 30, 2011 was $59,000 and $81,000, respectively. There was an income tax benefit of $22,000 recognized in the statements of earnings for these amounts for the quarter ended June 30, 2012, but no tax benefit recognized for the same quarter ended in 2011. The amount of compensation expense for options recorded in the six months ended June 30, 2012 and 2011 was $121,000 and $154,000, respectively. There was an income tax benefit of $22,000 recognized in the statements of earnings for these amounts for the six months ended June 30, 2012, but no tax benefit recognized for the six months ended June 30, 2011. </p><br/><table cellpadding="0" cellspacing="0"> <tr> <td> 7 </td> </tr> </table><br/><p> The intrinsic value for options exercised during the quarter ended June 30, 2012 was $58,000.The intrinsic value for options exercised during the six month period ended June 30, 2012 was $61,000. The intrinsic value of options exercisable as of June 30, 2012 was $620,000. The intrinsic value for options exercised during the quarter and six months ended June 30, 2011 was $6,000. </p><br/><p> The amount of total unrecognized compensation expense related to non-vested options at June 30, 2012 was $472,000, and the weighted average period over which it will be amortized is 3.1 years. </p><br/> 59000 81000 22000 121000 154000 22000 58000 61000 620000 6000 472000 3.1 <table cellpadding="0" cellspacing="0"> <tr> <td> 7 </td> </tr> </table>

7000

<p> <b>NOTE C – EARNINGS PER SHARE CALCULATION</b> </p><br/><p> Earnings per common share (EPS) is computed based on the weighted average number of common shares outstanding during the period. Basic EPS excludes dilution and is computed by dividing net earnings available to common stockholders (after deducting dividends and related accretion on preferred stock) by the weighted average of common shares outstanding. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. All common stock equivalents are anti-dilutive when a net loss occurs. </p><br/><p> Earnings per share have been computed based on the following : </p><br/><table cellpadding="0" cellspacing="0"> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="6"> Three months ended </td> <td>   </td> <td>   </td> <td colspan="6"> Six months ended </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="6"> June 30, </td> <td>   </td> <td>   </td> <td colspan="6"> June 30, </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> 2012 </td> <td>   </td> <td>   </td> <td colspan="2"> 2011 </td> <td>   </td> <td>   </td> <td colspan="2"> 2012 </td> <td>   </td> <td>   </td> <td colspan="2"> 2011 </td> <td>   </td> </tr> <tr> <td> Net earnings </td> <td>   </td> <td> $ </td> <td> 1,228 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 1,180 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 2,516 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 1,983 </td> <td>   </td> </tr> <tr> <td> Dividends and discount accretion on preferred stock </td> <td>   </td> <td>   </td> <td> 157 </td> <td>   </td> <td>   </td> <td>   </td> <td> 214 </td> <td>   </td> <td>   </td> <td>   </td> <td> 343 </td> <td>   </td> <td>   </td> <td>   </td> <td> 428 </td> <td>   </td> </tr> <tr> <td> Net earnings available to common stockholders </td> <td>   </td> <td> $ </td> <td> 1,071 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 966 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 2,173 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 1,555 </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Average number of shares outstanding </td> <td>   </td> <td>   </td> <td> 3,514,000 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,509,000 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,512,000 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,509,000 </td> <td>   </td> </tr> <tr> <td> Effect of dilutive options </td> <td>   </td> <td>   </td> <td> 62,000 </td> <td>   </td> <td>   </td> <td>   </td> <td> 26,000 </td> <td>   </td> <td>   </td> <td>   </td> <td> 51,000 </td> <td>   </td> <td>   </td> <td>   </td> <td> 19,000 </td> <td>   </td> </tr> <tr> <td> Average number of shares outstanding used to calculate diluted earnings per share </td> <td>   </td> <td>   </td> <td> 3,576,000 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,535,000 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,563,000 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,528,000 </td> <td>   </td> </tr> </table><br/><p> Antidilutive options that were excluded from the calculation for the quarter and year to date totaled 277,032 and 299,194 in 2012, and 334,997 and 322,797 in 2011, respectively. </p><br/>

277032

299194

334997

322797

<table cellpadding="0" cellspacing="0"> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="6"> Three months ended </td> <td>   </td> <td>   </td> <td colspan="6"> Six months ended </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="6"> June 30, </td> <td>   </td> <td>   </td> <td colspan="6"> June 30, </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> 2012 </td> <td>   </td> <td>   </td> <td colspan="2"> 2011 </td> <td>   </td> <td>   </td> <td colspan="2"> 2012 </td> <td>   </td> <td>   </td> <td colspan="2"> 2011 </td> <td>   </td> </tr> <tr> <td> Net earnings </td> <td>   </td> <td> $ </td> <td> 1,228 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 1,180 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 2,516 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 1,983 </td> <td>   </td> </tr> <tr> <td> Dividends and discount accretion on preferred stock </td> <td>   </td> <td>   </td> <td> 157 </td> <td>   </td> <td>   </td> <td>   </td> <td> 214 </td> <td>   </td> <td>   </td> <td>   </td> <td> 343 </td> <td>   </td> <td>   </td> <td>   </td> <td> 428 </td> <td>   </td> </tr> <tr> <td> Net earnings available to common stockholders </td> <td>   </td> <td> $ </td> <td> 1,071 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 966 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 2,173 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 1,555 </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Average number of shares outstanding </td> <td>   </td> <td>   </td> <td> 3,514,000 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,509,000 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,512,000 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,509,000 </td> <td>   </td> </tr> <tr> <td> Effect of dilutive options </td> <td>   </td> <td>   </td> <td> 62,000 </td> <td>   </td> <td>   </td> <td>   </td> <td> 26,000 </td> <td>   </td> <td>   </td> <td>   </td> <td> 51,000 </td> <td>   </td> <td>   </td> <td>   </td> <td> 19,000 </td> <td>   </td> </tr> <tr> <td> Average number of shares outstanding used to calculate diluted earnings per share </td> <td>   </td> <td>   </td> <td> 3,576,000 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,535,000 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,563,000 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,528,000 </td> <td>   </td> </tr> </table>

1228000

1180000

2516000

1983000

157000

214000

343000

428000

1071000

966000

2173000

1555000

3514000

3509000

3512000

3509000

62000000 26000000 51000000 19000000

3576000

3535000

3563000

3528000

<p> <b>NOTE D – SECURITIES AVAILABLE FOR SALE</b> </p><br/><p> The amortized cost and carrying values of securities available-for-sale are as follows: </p><br/><table cellpadding="0" cellspacing="0"> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2"> Amortized </td> <td>   </td> <td>   </td> <td colspan="2"> Unrealized </td> <td>   </td> <td>   </td> <td colspan="2"> Unrealized </td> <td>   </td> <td>   </td> <td colspan="2"> Carrying </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> cost </td> <td>   </td> <td>   </td> <td colspan="2"> gains </td> <td>   </td> <td>   </td> <td colspan="2"> losses </td> <td>   </td> <td>   </td> <td colspan="2"> value </td> <td>   </td> </tr> <tr> <td> June 30, 2012 </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td> U. S. Treasury securities </td> <td>   </td> <td> $ </td> <td> 8,212 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 172 </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> <td>   </td> <td> $ </td> <td> 8,384 </td> <td>   </td> </tr> <tr> <td> Obligations of U.S. Government agencies </td> <td>   </td> <td>   </td> <td> 62,995 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,102 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 64,097 </td> <td>   </td> </tr> <tr> <td> Mortgage backed securities </td> <td>   </td> <td>   </td> <td> 36,162 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,260 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 37,422 </td> <td>   </td> </tr> <tr> <td> Obligations of states and political subdivisions </td> <td>   </td> <td>   </td> <td> 73,885 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,290 </td> <td>   </td> <td>   </td> <td>   </td> <td> (39 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 77,136 </td> <td>   </td> </tr> <tr> <td> Corporate debt </td> <td>   </td> <td>   </td> <td> 16,455 </td> <td>   </td> <td>   </td> <td>   </td> <td> 190 </td> <td>   </td> <td>   </td> <td>   </td> <td> (136 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 16,509 </td> <td>   </td> </tr> <tr> <td> Totals </td> <td>   </td> <td> $ </td> <td> 197,709 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 6,014 </td> <td>   </td> <td>   </td> <td> $ </td> <td> (175 </td> <td> ) </td> <td>   </td> <td> $ </td> <td> 203,548 </td> <td>   </td> </tr> </table><br/><table cellpadding="0" cellspacing="0"> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2"> Amortized </td> <td>   </td> <td>   </td> <td colspan="2"> Unrealized </td> <td>   </td> <td>   </td> <td colspan="2"> Unrealized </td> <td>   </td> <td>   </td> <td colspan="2"> Carrying </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> cost </td> <td>   </td> <td>   </td> <td colspan="2"> gains </td> <td>   </td> <td>   </td> <td colspan="2"> losses </td> <td>   </td> <td>   </td> <td colspan="2"> value </td> <td>   </td> </tr> <tr> <td> December 31, 2011: </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> U.S. Treasury securities </td> <td>   </td> <td> $ </td> <td> 12,371 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 263 </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> <td>   </td> <td> $ </td> <td> 12,634 </td> <td>   </td> </tr> <tr> <td> Obligations of U.S. government agencies </td> <td>   </td> <td>   </td> <td> 53,150 </td> <td>   </td> <td>   </td> <td>   </td> <td> 964 </td> <td>   </td> <td>   </td> <td>   </td> <td> (12 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 54,102 </td> <td>   </td> </tr> <tr> <td> Mortgage-backed securities </td> <td>   </td> <td>   </td> <td> 32,606 </td> <td>   </td> <td>   </td> <td>   </td> <td> 838 </td> <td>   </td> <td>   </td> <td>   </td> <td> (9 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 33,435 </td> <td>   </td> </tr> <tr> <td> Obligations of states and political subdivisions </td> <td>   </td> <td>   </td> <td> 73,674 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,592 </td> <td>   </td> <td>   </td> <td>   </td> <td> (15 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 77,251 </td> <td>   </td> </tr> <tr> <td> Corporate debt </td> <td>   </td> <td>   </td> <td> 10,314 </td> <td>   </td> <td>   </td> <td>   </td> <td> 102 </td> <td>   </td> <td>   </td> <td>   </td> <td> (174 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 10,242 </td> <td>   </td> </tr> <tr> <td> Totals </td> <td>   </td> <td> $ </td> <td> 182,115 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 5,759 </td> <td>   </td> <td>   </td> <td> $ </td> <td> (210 </td> <td> ) </td> <td>   </td> <td> $ </td> <td> 187,664 </td> <td>   </td> </tr> </table><br/><p> An analysis of gross unrealized losses within the available-for-sale investment securities portfolio as of June 30, 2012 and December 31, 2011 follows. </p><br/><table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> <td>   </td> <td colspan="2"> < 12 Months </td> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> <td>   </td> <td colspan="2"> 12 Months or > </td> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> </tr> <tr> <td> June 30, 2012 </td> <td>   </td> <td colspan="2"> Fair </td> <td>   </td> <td>   </td> <td colspan="2"> Unrealized </td> <td>   </td> <td>   </td> <td colspan="2"> Fair </td> <td>   </td> <td>   </td> <td colspan="2"> Unrealized </td> <td>   </td> <td>   </td> <td colspan="2"> Fair </td> <td>   </td> <td>   </td> <td colspan="2"> Unrealized </td> <td>   </td> </tr> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2"> Value </td> <td>   </td> <td>   </td> <td colspan="2"> Losses </td> <td>   </td> <td>   </td> <td colspan="2"> Value </td> <td>   </td> <td>   </td> <td colspan="2"> Losses </td> <td>   </td> <td>   </td> <td colspan="2"> Value </td> <td>   </td> <td>   </td> <td colspan="2"> Losses </td> <td>   </td> </tr> <tr> <td> Obligations of states and political subdivisions </td> <td>   </td> <td> $ </td> <td> 4,753 </td> <td>   </td> <td>   </td> <td> $ </td> <td> (39 </td> <td> ) </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td> </td> <td>   </td> <td> $ </td> <td> 4,753 </td> <td>   </td> <td>   </td> <td> $ </td> <td> (39 </td> <td> ) </td> </tr> <tr> <td> Corporate debt </td> <td>   </td> <td>   </td> <td> 5,176 </td> <td>   </td> <td>   </td> <td>   </td> <td> (45 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 1,369 </td> <td>   </td> <td>   </td> <td>   </td> <td> (91 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 6,545 </td> <td>   </td> <td>   </td> <td>   </td> <td> (136 </td> <td> ) </td> </tr> <tr> <td> Total </td> <td>   </td> <td> $ </td> <td> 9,929 </td> <td>   </td> <td>   </td> <td> $ </td> <td> (84 </td> <td> ) </td> <td>   </td> <td> $ </td> <td> 1,369 </td> <td>   </td> <td>   </td> <td> $ </td> <td> (91 </td> <td> ) </td> <td>   </td> <td> $ </td> <td> 11,298 </td> <td>   </td> <td>   </td> <td> $ </td> <td> (175 </td> <td> ) </td> </tr> </table><br/><table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> <td>   </td> <td colspan="2"> < 12 Months </td> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> <td>   </td> <td colspan="2"> 12 Months or > </td> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> <td colspan="2"> Total </td> </tr> <tr> <td> December 31, 2011: </td> <td>   </td> <td colspan="2"> Fair </td> <td>   </td> <td>   </td> <td colspan="2"> Unrealized </td> <td>   </td> <td>   </td> <td colspan="2"> Fair </td> <td>   </td> <td>   </td> <td colspan="2"> Unrealized </td> <td>   </td> <td>   </td> <td colspan="2"> Fair </td> <td>   </td> <td colspan="2"> Unrealized </td> </tr> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2"> Value </td> <td>   </td> <td>   </td> <td colspan="2"> Losses </td> <td>   </td> <td>   </td> <td colspan="2"> Value </td> <td>   </td> <td>   </td> <td colspan="2"> Losses </td> <td>   </td> <td>   </td> <td colspan="2"> Value </td> <td>   </td> <td colspan="2"> Losses </td> </tr> <tr> <td> Obligations of U.S. government agencies </td> <td>   </td> <td> $ </td> <td> 6,293 </td> <td>   </td> <td>   </td> <td> $ </td> <td> (12 </td> <td> ) </td> <td>   </td> <td> $ </td> <td>   </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td> </td> <td>   </td> <td> $ </td> <td> 6,293 </td> <td>   </td> <td> $ </td> <td> (12) </td> </tr> <tr> <td> Mortgage-backed securities </td> <td>   </td> <td>   </td> <td> 6,466 </td> <td>   </td> <td>   </td> <td>   </td> <td> (9 </td> <td> ) </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 6,466 </td> <td>   </td> <td>   </td> <td> (9) </td> </tr> <tr> <td> Obligations of states and political subdivisions </td> <td>   </td> <td>   </td> <td> 2,744 </td> <td>   </td> <td>   </td> <td>   </td> <td> (15 </td> <td> ) </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 2,744 </td> <td>   </td> <td>   </td> <td> (15) </td> </tr> <tr> <td> Corporate debt </td> <td>   </td> <td>   </td> <td> 5,554 </td> <td>   </td> <td>   </td> <td>   </td> <td> (173 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 500 </td> <td>   </td> <td>   </td> <td>   </td> <td> (1 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 6,054 </td> <td>   </td> <td>   </td> <td> (174) </td> </tr> <tr> <td> Total </td> <td>   </td> <td> $ </td> <td> 21,057 </td> <td>   </td> <td>   </td> <td> $ </td> <td> (209 </td> <td> ) </td> <td>   </td> <td> $ </td> <td> 500 </td> <td>   </td> <td>   </td> <td> $ </td> <td> (1 </td> <td> )  </td> <td>   </td> <td> $ </td> <td> 21,557 </td> <td>   </td> <td> $ </td> <td> (210) </td> </tr> </table><br/><table cellpadding="0" cellspacing="0"> <tr> <td> 9 </td> </tr> </table><br/><p> At June 30, 2012, there were two securities in an unrealized loss position for greater than 12 consecutive months. At December 31, 2011, there was one security in an unrealized loss position for greater than 12 consecutive months. Management periodically evaluates each security in an unrealized loss position to determine if the impairment is temporary or other-than-temporary. The unrealized losses are due solely to interest rate changes and the Company does not intend to sell nor expects it will be required to sell investment securities identified with impairments prior to the earliest of forecasted recovery or the maturity of the underlying investment security. Management has determined that no investment security is other-than-temporarily impaired at June 30, 2012. </p><br/><p> The amortized cost and carrying value of available-for-sale debt securities as of June 30, 2012 by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. </p><br/><table cellpadding="0" cellspacing="0"> <tr> <td> At June 30, 2012: </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2"> Amortized </td> <td>   </td> <td>   </td> <td colspan="2"> Carrying </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Cost </td> <td>   </td> <td>   </td> <td colspan="2"> Value </td> <td>   </td> </tr> <tr> <td> Available-for-sale: </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Due in one year or less </td> <td>   </td> <td> $ </td> <td> 12,359 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 12,462 </td> <td>   </td> </tr> <tr> <td> Due after one through five years </td> <td>   </td> <td>   </td> <td> 84,506 </td> <td>   </td> <td>   </td> <td>   </td> <td> 86,243 </td> <td>   </td> </tr> <tr> <td> Due after five years through ten years </td> <td>   </td> <td>   </td> <td> 61,512 </td> <td>   </td> <td>   </td> <td>   </td> <td> 63,750 </td> <td>   </td> </tr> <tr> <td> Due after ten years </td> <td>   </td> <td>   </td> <td> 39,332 </td> <td>   </td> <td>   </td> <td>   </td> <td> 41,093 </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td> $ </td> <td> 197,709 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 203,548 </td> <td>   </td> </tr> </table><br/><p> For the six months ended June 30, 2012, gross realized gains amounted to $817,000 on the sale of $22,717,000 in securities. For the six months ended June 30, 2011, gross realized gains amounted to $150,000 on the sale of $10,185,000 in securities. For the six months ended June 30, 2012 and June 30, 2011, gross unrealized losses were $8,000 and $2,000, respectively. </p><br/><p> At June 30, 2012, securities with an amortized cost of $68,349,000 and fair value of $70,592,000 were pledged as collateral for public deposits and for other purposes required by law. </p><br/><p> At June 30, 2012 and December 31, 2011, the Bank had investments in Federal Reserve Bank stock of $1,062,000 classified as other equity securities in the accompanying balance sheet. These investments in Federal Reserve Bank stock are carried at cost, and evaluated periodically for impairment. At June 30, 2012 and December 31, 2011, the Bank had investments in Federal Home Loan Bank stock classified as other equity securities in the accompanying balance sheet of $3,293,000 and $3,300,000, respectively. These investments in Federal Home Loan Bank stock are carried at cost, and evaluated periodically for impairment. </p><br/>

817000 22717000 150000 10185000 8000 2000 68349000 70592000

1062000

3293000

3300000

<table cellpadding="0" cellspacing="0"> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2"> Amortized </td> <td>   </td> <td>   </td> <td colspan="2"> Unrealized </td> <td>   </td> <td>   </td> <td colspan="2"> Unrealized </td> <td>   </td> <td>   </td> <td colspan="2"> Carrying </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> cost </td> <td>   </td> <td>   </td> <td colspan="2"> gains </td> <td>   </td> <td>   </td> <td colspan="2"> losses </td> <td>   </td> <td>   </td> <td colspan="2"> value </td> <td>   </td> </tr> <tr> <td> June 30, 2012 </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td> U. S. Treasury securities </td> <td>   </td> <td> $ </td> <td> 8,212 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 172 </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> <td>   </td> <td> $ </td> <td> 8,384 </td> <td>   </td> </tr> <tr> <td> Obligations of U.S. Government agencies </td> <td>   </td> <td>   </td> <td> 62,995 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,102 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 64,097 </td> <td>   </td> </tr> <tr> <td> Mortgage backed securities </td> <td>   </td> <td>   </td> <td> 36,162 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,260 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 37,422 </td> <td>   </td> </tr> <tr> <td> Obligations of states and political subdivisions </td> <td>   </td> <td>   </td> <td> 73,885 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,290 </td> <td>   </td> <td>   </td> <td>   </td> <td> (39 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 77,136 </td> <td>   </td> </tr> <tr> <td> Corporate debt </td> <td>   </td> <td>   </td> <td> 16,455 </td> <td>   </td> <td>   </td> <td>   </td> <td> 190 </td> <td>   </td> <td>   </td> <td>   </td> <td> (136 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 16,509 </td> <td>   </td> </tr> <tr> <td> Totals </td> <td>   </td> <td> $ </td> <td> 197,709 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 6,014 </td> <td>   </td> <td>   </td> <td> $ </td> <td> (175 </td> <td> ) </td> <td>   </td> <td> $ </td> <td> 203,548 </td> <td>   </td> </tr> </table> 8212000 172000 8384000 62995000 1102000 64097000 36162000 1260000 37422000 73885000 3290000 -39000 77136000 16455000 190000 -136000 16509000 197709000 6014000 -175000 203548000 AmortizedCostAndCarryingValue<br /><table cellpadding="0" cellspacing="0"> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2"> Amortized </td> <td>   </td> <td>   </td> <td colspan="2"> Unrealized </td> <td>   </td> <td>   </td> <td colspan="2"> Unrealized </td> <td>   </td> <td>   </td> <td colspan="2"> Carrying </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> cost </td> <td>   </td> <td>   </td> <td colspan="2"> gains </td> <td>   </td> <td>   </td> <td colspan="2"> losses </td> <td>   </td> <td>   </td> <td colspan="2"> value </td> <td>   </td> </tr> <tr> <td> December 31, 2011: </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> U.S. Treasury securities </td> <td>   </td> <td> $ </td> <td> 12,371 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 263 </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> <td>   </td> <td> $ </td> <td> 12,634 </td> <td>   </td> </tr> <tr> <td> Obligations of U.S. government agencies </td> <td>   </td> <td>   </td> <td> 53,150 </td> <td>   </td> <td>   </td> <td>   </td> <td> 964 </td> <td>   </td> <td>   </td> <td>   </td> <td> (12 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 54,102 </td> <td>   </td> </tr> <tr> <td> Mortgage-backed securities </td> <td>   </td> <td>   </td> <td> 32,606 </td> <td>   </td> <td>   </td> <td>   </td> <td> 838 </td> <td>   </td> <td>   </td> <td>   </td> <td> (9 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 33,435 </td> <td>   </td> </tr> <tr> <td> Obligations of states and political subdivisions </td> <td>   </td> <td>   </td> <td> 73,674 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,592 </td> <td>   </td> <td>   </td> <td>   </td> <td> (15 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 77,251 </td> <td>   </td> </tr> <tr> <td> Corporate debt </td> <td>   </td> <td>   </td> <td> 10,314 </td> <td>   </td> <td>   </td> <td>   </td> <td> 102 </td> <td>   </td> <td>   </td> <td>   </td> <td> (174 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 10,242 </td> <td>   </td> </tr> <tr> <td> Totals </td> <td>   </td> <td> $ </td> <td> 182,115 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 5,759 </td> <td>   </td> <td>   </td> <td> $ </td> <td> (210 </td> <td> ) </td> <td>   </td> <td> $ </td> <td> 187,664 </td> <td>   </td> </tr> </table> 12371000 263000 12634000 53150000 964000 -12000 54102000 32606000 838000 -9000 33435000 73674000 3592000 -15000 77251000 10314000 102000 -174000 10242000 182115000 5759000 -210000 187664000 <table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> <td>   </td> <td colspan="2"> < 12 Months </td> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> <td>   </td> <td colspan="2"> 12 Months or > </td> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> </tr> <tr> <td> June 30, 2012 </td> <td>   </td> <td colspan="2"> Fair </td> <td>   </td> <td>   </td> <td colspan="2"> Unrealized </td> <td>   </td> <td>   </td> <td colspan="2"> Fair </td> <td>   </td> <td>   </td> <td colspan="2"> Unrealized </td> <td>   </td> <td>   </td> <td colspan="2"> Fair </td> <td>   </td> <td>   </td> <td colspan="2"> Unrealized </td> <td>   </td> </tr> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2"> Value </td> <td>   </td> <td>   </td> <td colspan="2"> Losses </td> <td>   </td> <td>   </td> <td colspan="2"> Value </td> <td>   </td> <td>   </td> <td colspan="2"> Losses </td> <td>   </td> <td>   </td> <td colspan="2"> Value </td> <td>   </td> <td>   </td> <td colspan="2"> Losses </td> <td>   </td> </tr> <tr> <td> Obligations of states and political subdivisions </td> <td>   </td> <td> $ </td> <td> 4,753 </td> <td>   </td> <td>   </td> <td> $ </td> <td> (39 </td> <td> ) </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td> </td> <td>   </td> <td> $ </td> <td> 4,753 </td> <td>   </td> <td>   </td> <td> $ </td> <td> (39 </td> <td> ) </td> </tr> <tr> <td> Corporate debt </td> <td>   </td> <td>   </td> <td> 5,176 </td> <td>   </td> <td>   </td> <td>   </td> <td> (45 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 1,369 </td> <td>   </td> <td>   </td> <td>   </td> <td> (91 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 6,545 </td> <td>   </td> <td>   </td> <td>   </td> <td> (136 </td> <td> ) </td> </tr> <tr> <td> Total </td> <td>   </td> <td> $ </td> <td> 9,929 </td> <td>   </td> <td>   </td> <td> $ </td> <td> (84 </td> <td> ) </td> <td>   </td> <td> $ </td> <td> 1,369 </td> <td>   </td> <td>   </td> <td> $ </td> <td> (91 </td> <td> ) </td> <td>   </td> <td> $ </td> <td> 11,298 </td> <td>   </td> <td>   </td> <td> $ </td> <td> (175 </td> <td> ) </td> </tr> </table> 4753000 -39000 4753000 -39000 5176000 -45000 1369000 -91000 6545000 -136000 9929000 -84000 1369000 -91000 11298000 -175000

<table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> <td>   </td> <td colspan="2"> < 12 Months </td> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> <td>   </td> <td colspan="2"> 12 Months or > </td> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> <td colspan="2"> Total </td> </tr> <tr> <td> December 31, 2011: </td> <td>   </td> <td colspan="2"> Fair </td> <td>   </td> <td>   </td> <td colspan="2"> Unrealized </td> <td>   </td> <td>   </td> <td colspan="2"> Fair </td> <td>   </td> <td>   </td> <td colspan="2"> Unrealized </td> <td>   </td> <td>   </td> <td colspan="2"> Fair </td> <td>   </td> <td colspan="2"> Unrealized </td> </tr> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2"> Value </td> <td>   </td> <td>   </td> <td colspan="2"> Losses </td> <td>   </td> <td>   </td> <td colspan="2"> Value </td> <td>   </td> <td>   </td> <td colspan="2"> Losses </td> <td>   </td> <td>   </td> <td colspan="2"> Value </td> <td>   </td> <td colspan="2"> Losses </td> </tr> <tr> <td> Obligations of U.S. government agencies </td> <td>   </td> <td> $ </td> <td> 6,293 </td> <td>   </td> <td>   </td> <td> $ </td> <td> (12 </td> <td> ) </td> <td>   </td> <td> $ </td> <td>   </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td> </td> <td>   </td> <td> $ </td> <td> 6,293 </td> <td>   </td> <td> $ </td> <td> (12) </td> </tr> <tr> <td> Mortgage-backed securities </td> <td>   </td> <td>   </td> <td> 6,466 </td> <td>   </td> <td>   </td> <td>   </td> <td> (9 </td> <td> ) </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 6,466 </td> <td>   </td> <td>   </td> <td> (9) </td> </tr> <tr> <td> Obligations of states and political subdivisions </td> <td>   </td> <td>   </td> <td> 2,744 </td> <td>   </td> <td>   </td> <td>   </td> <td> (15 </td> <td> ) </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 2,744 </td> <td>   </td> <td>   </td> <td> (15) </td> </tr> <tr> <td> Corporate debt </td> <td>   </td> <td>   </td> <td> 5,554 </td> <td>   </td> <td>   </td> <td>   </td> <td> (173 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 500 </td> <td>   </td> <td>   </td> <td>   </td> <td> (1 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 6,054 </td> <td>   </td> <td>   </td> <td> (174) </td> </tr> <tr> <td> Total </td> <td>   </td> <td> $ </td> <td> 21,057 </td> <td>   </td> <td>   </td> <td> $ </td> <td> (209 </td> <td> ) </td> <td>   </td> <td> $ </td> <td> 500 </td> <td>   </td> <td>   </td> <td> $ </td> <td> (1 </td> <td> )  </td> <td>   </td> <td> $ </td> <td> 21,557 </td> <td>   </td> <td> $ </td> <td> (210) </td> </tr> </table>

6293000 -12000 6293000 -12000 6466000 -9000 6466000 -9000 2744000 -15000 2744000 -15000 5554000 -173000 500000 -1000 6054000 -174000 21057000 -209000 500000 -1000 21557000 -210000 <table cellpadding="0" cellspacing="0"> <tr> <td> 9 </td> </tr> </table>

9000

<table cellpadding="0" cellspacing="0"> <tr> <td> At June 30, 2012: </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2"> Amortized </td> <td>   </td> <td>   </td> <td colspan="2"> Carrying </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Cost </td> <td>   </td> <td>   </td> <td colspan="2"> Value </td> <td>   </td> </tr> <tr> <td> Available-for-sale: </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Due in one year or less </td> <td>   </td> <td> $ </td> <td> 12,359 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 12,462 </td> <td>   </td> </tr> <tr> <td> Due after one through five years </td> <td>   </td> <td>   </td> <td> 84,506 </td> <td>   </td> <td>   </td> <td>   </td> <td> 86,243 </td> <td>   </td> </tr> <tr> <td> Due after five years through ten years </td> <td>   </td> <td>   </td> <td> 61,512 </td> <td>   </td> <td>   </td> <td>   </td> <td> 63,750 </td> <td>   </td> </tr> <tr> <td> Due after ten years </td> <td>   </td> <td>   </td> <td> 39,332 </td> <td>   </td> <td>   </td> <td>   </td> <td> 41,093 </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td> $ </td> <td> 197,709 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 203,548 </td> <td>   </td> </tr> </table> 12359000 12462000 84506000 86243000 61512000 63750000 39332000 41093000 197709000 203548000 <p> <b>NOTE E – LOANS</b> </p><br/><p> Loans are summarized as follows at June 30, 2012 and December 31, 2011: </p><br/><table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td>   </td> <td colspan="2"> June 30 </td> <td>   </td> <td>   </td> <td colspan="2"> December 31 </td> <td>   </td> </tr> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2"> 2012 </td> <td>   </td> <td>   </td> <td colspan="2"> 2011 </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td> $ </td> <td> 244,753 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 257,413 </td> <td>   </td> </tr> <tr> <td> Real estate construction </td> <td>   </td> <td>   </td> <td> 25,644 </td> <td>   </td> <td>   </td> <td>   </td> <td> 28,229 </td> <td>   </td> </tr> <tr> <td> Real estate multi-family </td> <td>   </td> <td>   </td> <td> 39,960 </td> <td>   </td> <td>   </td> <td>   </td> <td> 36,369 </td> <td>   </td> </tr> <tr> <td> Real estate 1 to 4 family </td> <td>   </td> <td>   </td> <td> 95,886 </td> <td>   </td> <td>   </td> <td>   </td> <td> 86,322 </td> <td>   </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td>   </td> <td> 53,562 </td> <td>   </td> <td>   </td> <td>   </td> <td> 43,074 </td> <td>   </td> </tr> <tr> <td> Consumer loans </td> <td>   </td> <td>   </td> <td> 2,037 </td> <td>   </td> <td>   </td> <td>   </td> <td> 2,335 </td> <td>   </td> </tr> <tr> <td> Gross loans </td> <td>   </td> <td>   </td> <td> 461,842 </td> <td>   </td> <td>   </td> <td>   </td> <td> 453,742 </td> <td>   </td> </tr> <tr> <td> Net deferred loan fees </td> <td>   </td> <td>   </td> <td> (84 </td> <td> ) </td> <td>   </td> <td>   </td> <td> (124 </td> <td> ) </td> </tr> <tr> <td> Allowance for loan losses </td> <td>   </td> <td>   </td> <td> (8,458 </td> <td> ) </td> <td>   </td> <td>   </td> <td> (9,897 </td> <td> ) </td> </tr> <tr> <td> Net loans </td> <td>   </td> <td> $ </td> <td> 453,300 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 443,721 </td> <td>   </td> </tr> </table><br/><p> A summary of impaired loans, the related allowance for loan losses, average investment and income recognized on impaired loans follows. </p><br/><table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td>   </td> <td>   </td> <td colspan="9"> <b>Impaired Loans<br /> At June 30, 2012</b> </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td>   </td> <td> Recorded Investment </td> <td>   </td> <td>   </td> <td>   </td> <td> Unpaid Principal Balance </td> <td>   </td> <td>   </td> <td>   </td> <td> Related Allowance </td> <td>   </td> </tr> <tr> <td> With no related allowance recorded </td> <td>   </td> <td>   </td> <td> </td> <td>   </td> <td>   </td> <td>   </td> <td> </td> <td>   </td> <td>   </td> <td>   </td> <td> </td> <td>   </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td> $ </td> <td> 1,751 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 2,327 </td> <td>   </td> <td>   </td> <td> $ </td> <td> ─ </td> <td>   </td> </tr> <tr> <td> Commercial real estate construction </td> <td>   </td> <td>   </td> <td> 6,186 </td> <td>   </td> <td>   </td> <td>   </td> <td> 6,186 </td> <td>   </td> <td>   </td> <td>   </td> <td> ─ </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td>   </td> <td> 2,886 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,452 </td> <td>   </td> <td>   </td> <td>   </td> <td> ─ </td> <td>   </td> </tr> <tr> <td> Residential - 1 to 4 family </td> <td>   </td> <td>   </td> <td> 1,527 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,675 </td> <td>   </td> <td>   </td> <td>   </td> <td> ─ </td> <td>   </td> </tr> <tr> <td> Total </td> <td>   </td> <td>   </td> <td> 12,350 </td> <td>   </td> <td>   </td> <td>   </td> <td> 13,640 </td> <td>   </td> <td>   </td> <td>   </td> <td> ─ </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> With an allowance recorded </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td> $ </td> <td> 3,105 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 3,421 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 505 </td> <td>   </td> </tr> <tr> <td> Commercial real estate construction </td> <td>   </td> <td>   </td> <td> 1,052 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,052 </td> <td>   </td> <td>   </td> <td>   </td> <td> 75 </td> <td>   </td> </tr> <tr> <td> Real estate multi-family </td> <td>   </td> <td>   </td> <td> 3,242 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,369 </td> <td>   </td> <td>   </td> <td>   </td> <td> 42 </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td>   </td> <td> 8,811 </td> <td>   </td> <td>   </td> <td>   </td> <td> 9,987 </td> <td>   </td> <td>   </td> <td>   </td> <td> 477 </td> <td>   </td> </tr> <tr> <td> Residential- 1 to 4 family </td> <td>   </td> <td>   </td> <td> 4,916 </td> <td>   </td> <td>   </td> <td>   </td> <td> 4,916 </td> <td>   </td> <td>   </td> <td>   </td> <td> 157 </td> <td>   </td> </tr> <tr> <td> Consumer </td> <td>   </td> <td>   </td> <td> 10 </td> <td>   </td> <td>   </td> <td>   </td> <td> 10 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1 </td> <td>   </td> </tr> <tr> <td>  Total </td> <td>   </td> <td>   </td> <td> 21,136 </td> <td>   </td> <td>   </td> <td>   </td> <td> 22,755 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,257 </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Total </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td> $ </td> <td> 4,856 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 5,748 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 505 </td> <td>   </td> </tr> <tr> <td> Commercial real estate construction </td> <td>   </td> <td>   </td> <td> 7,238 </td> <td>   </td> <td>   </td> <td>   </td> <td> 7,238 </td> <td>   </td> <td>   </td> <td>   </td> <td> 75 </td> <td>   </td> </tr> <tr> <td> Real estate multi-family </td> <td>   </td> <td>   </td> <td> 3,242 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,369 </td> <td>   </td> <td>   </td> <td>   </td> <td> 42 </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td>   </td> <td> 11,697 </td> <td>   </td> <td>   </td> <td>   </td> <td> 13,439 </td> <td>   </td> <td>   </td> <td>   </td> <td> 477 </td> <td>   </td> </tr> <tr> <td> Residential - 1 to 4 family </td> <td>   </td> <td>   </td> <td> 6,443 </td> <td>   </td> <td>   </td> <td>   </td> <td> 6,591 </td> <td>   </td> <td>   </td> <td>   </td> <td> 157 </td> <td>   </td> </tr> <tr> <td> Consumer </td> <td>   </td> <td>   </td> <td> 10 </td> <td>   </td> <td>   </td> <td>   </td> <td> 10 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1 </td> <td>   </td> </tr> <tr> <td> Grand total </td> <td>   </td> <td> $ </td> <td> 33,486 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 36,395 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 1,257 </td> <td>   </td> </tr> </table><br/><table cellspacing="0" cellpadding="0"> <tr> <td>   </td> <td>   </td> <td colspan="14"> <strong>Impaired Loans</strong> </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td> <strong> </strong> </td> <td> <strong> </strong> </td> <td colspan="6"> <strong>3 months ended<br /> June 30, 2012</strong> </td> <td> <strong> </strong> </td> <td> <strong> </strong> </td> <td colspan="6"> <strong>6 months ended<br /> June 30, 2012</strong> </td> <td> <strong> </strong> </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Average </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Average </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td> (Dollar amounts in thousands)  </td> <td>   </td> <td colspan="2"> Recorded </td> <td>   </td> <td>   </td> <td colspan="2"> Income </td> <td>   </td> <td>   </td> <td colspan="2"> Recorded </td> <td>   </td> <td>   </td> <td colspan="2"> Income </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Investment </td> <td>   </td> <td>   </td> <td colspan="2"> Recognized </td> <td>   </td> <td>   </td> <td colspan="2"> Investment </td> <td>   </td> <td>   </td> <td colspan="2"> Recognized </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> With no related allow ance recorded </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td> $ </td> <td> 1,840 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 29 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 1,888 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 45 </td> <td>   </td> </tr> <tr> <td> Commercial real estate construction </td> <td>   </td> <td>   </td> <td> 6,197 </td> <td>   </td> <td>   </td> <td>   </td> <td> 85 </td> <td>   </td> <td>   </td> <td>   </td> <td> 6,209 </td> <td>   </td> <td>   </td> <td>   </td> <td> 109 </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td>   </td> <td> 2,886 </td> <td>   </td> <td>   </td> <td>   </td> <td> 16 </td> <td>   </td> <td>   </td> <td>   </td> <td> 2,886 </td> <td>   </td> <td>   </td> <td>   </td> <td> 36 </td> <td>   </td> </tr> <tr> <td> Residential - 1 to 4 family </td> <td>   </td> <td>   </td> <td> 1,539 </td> <td>   </td> <td>   </td> <td>   </td> <td> 15 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,542 </td> <td>   </td> <td>   </td> <td>   </td> <td> 32 </td> <td>   </td> </tr> <tr> <td> Total </td> <td>   </td> <td>   </td> <td> 12,462 </td> <td>   </td> <td>   </td> <td>   </td> <td> 145 </td> <td>   </td> <td>   </td> <td>   </td> <td> 12,525 </td> <td>   </td> <td>   </td> <td>   </td> <td> 222 </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> With an allow ance recorded </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td> $ </td> <td> 3,328 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 39 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 3,358 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 60 </td> <td>   </td> </tr> <tr> <td> Commercial real estate construction </td> <td>   </td> <td>   </td> <td> 1,054 </td> <td>   </td> <td>   </td> <td>   </td> <td> 14 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,056 </td> <td>   </td> <td>   </td> <td>   </td> <td> 29 </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td>   </td> <td> 8,827 </td> <td>   </td> <td>   </td> <td>   </td> <td> 59 </td> <td>   </td> <td>   </td> <td>   </td> <td> 10,033 </td> <td>   </td> <td>   </td> <td>   </td> <td> 130 </td> <td>   </td> </tr> <tr> <td> Real estate multi-family </td> <td>   </td> <td>   </td> <td> 3,252 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,263 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td> Residential- 1 to 4 family </td> <td>   </td> <td>   </td> <td> 4,916 </td> <td>   </td> <td>   </td> <td>   </td> <td> 18 </td> <td>   </td> <td>   </td> <td>   </td> <td> 4,916 </td> <td>   </td> <td>   </td> <td>   </td> <td> 40 </td> <td>   </td> </tr> <tr> <td> Consumer </td> <td>   </td> <td>   </td> <td> 10 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 10 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td> Total </td> <td>   </td> <td>   </td> <td> 21,387 </td> <td>   </td> <td>   </td> <td>   </td> <td> 130 </td> <td>   </td> <td>   </td> <td>   </td> <td> 22,636 </td> <td>   </td> <td>   </td> <td>   </td> <td> 259 </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Total </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td> $ </td> <td> 5,168 </td> <td>   </td> <td>   </td> <td>   </td> <td> 68 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 5,246 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 105 </td> <td>   </td> </tr> <tr> <td> Commercial real estate construction </td> <td>   </td> <td>   </td> <td> 7,251 </td> <td>   </td> <td>   </td> <td>   </td> <td> 99 </td> <td>   </td> <td>   </td> <td>   </td> <td> 7,265 </td> <td>   </td> <td>   </td> <td>   </td> <td> 138 </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td>   </td> <td> 11,713 </td> <td>   </td> <td>   </td> <td>   </td> <td> 75 </td> <td>   </td> <td>   </td> <td>   </td> <td> 12,919 </td> <td>   </td> <td>   </td> <td>   </td> <td> 166 </td> <td>   </td> </tr> <tr> <td> Real estate multi-family </td> <td>   </td> <td>   </td> <td> 3,252 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,263 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td> Residential - 1 to 4 family </td> <td>   </td> <td>   </td> <td> 6,455 </td> <td>   </td> <td>   </td> <td>   </td> <td> 33 </td> <td>   </td> <td>   </td> <td>   </td> <td> 6,458 </td> <td>   </td> <td>   </td> <td>   </td> <td> 72 </td> <td>   </td> </tr> <tr> <td> Consumer </td> <td>   </td> <td>   </td> <td> 10 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 10 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td> Grand total </td> <td>   </td> <td> $ </td> <td> 33,849 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 275 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 35,161 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 481 </td> <td>   </td> </tr> </table><br/><table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td>   </td> <td colspan="11"> Impaired Loans </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="11"> For the Year Ended December 31, 2011 </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Unpaid </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2"> Recorded </td> <td>   </td> <td>   </td> <td colspan="2"> Principal </td> <td>   </td> <td>   </td> <td colspan="2"> Related </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Investment </td> <td>   </td> <td>   </td> <td colspan="2"> Balance </td> <td>   </td> <td>   </td> <td colspan="2"> Allowance </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td> With no related allowance recorded </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td> $ </td> <td> 2,926 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 3,560 </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> </tr> <tr> <td> Commercial real estate construction </td> <td>   </td> <td>   </td> <td> 6,232 </td> <td>   </td> <td>   </td> <td>   </td> <td> 6,232 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td>   </td> <td> 3,269 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,835 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td> Residential- 1 to 4 family </td> <td>   </td> <td>   </td> <td> 1,059 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,145 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td> Total </td> <td>   </td> <td>   </td> <td> 13,486 </td> <td>   </td> <td>   </td> <td>   </td> <td> 14,772 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> With an allowance recorded </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td> $ </td> <td> 5,881 </td> <td>   </td> <td>   </td> <td>   </td> <td> 5,896 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 428 </td> <td>   </td> </tr> <tr> <td> Commercial real estate construction </td> <td>   </td> <td>   </td> <td> 1,586 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,686 </td> <td>   </td> <td>   </td> <td>   </td> <td> 214 </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td>   </td> <td> 11,767 </td> <td>   </td> <td>   </td> <td>   </td> <td> 11,767 </td> <td>   </td> <td>   </td> <td>   </td> <td> 727 </td> <td>   </td> </tr> <tr> <td> Residential- 1 to 4 family </td> <td>   </td> <td>   </td> <td> 2,254 </td> <td>   </td> <td>   </td> <td>   </td> <td> 2,262 </td> <td>   </td> <td>   </td> <td>   </td> <td> 200 </td> <td>   </td> </tr> <tr> <td> Total </td> <td>   </td> <td>   </td> <td> 21,488 </td> <td>   </td> <td>   </td> <td>   </td> <td> 21,611 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,569 </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Total </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td> $ </td> <td> 8,807 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 9,456 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 428 </td> <td>   </td> </tr> <tr> <td> Commercial real estate construction </td> <td>   </td> <td>   </td> <td> 7,818 </td> <td>   </td> <td>   </td> <td>   </td> <td> 7,918 </td> <td>   </td> <td>   </td> <td>   </td> <td> 214 </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td>   </td> <td> 15,036 </td> <td>   </td> <td>   </td> <td>   </td> <td> 15,602 </td> <td>   </td> <td>   </td> <td>   </td> <td> 727 </td> <td>   </td> </tr> <tr> <td> Residential - 1 to 4 family </td> <td>   </td> <td>   </td> <td> 3,313 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,407 </td> <td>   </td> <td>   </td> <td>   </td> <td> 200 </td> <td>   </td> </tr> <tr> <td> Grand total </td> <td>   </td> <td> $ </td> <td> 34,974 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 36,383 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 1,569 </td> <td>   </td> </tr> </table><br/><table cellspacing="0" cellpadding="0"> <tr> <td>   </td> <td>   </td> <td colspan="15"> <strong>Impaired Loans</strong> </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="6"> 3 months ended </td> <td>   </td> <td>   </td> <td colspan="6"> 6 months ended </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="6"> June 30, 2011 </td> <td>   </td> <td>   </td> <td colspan="6"> June 30, 2011 </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Average </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Average </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2"> Recorded </td> <td>   </td> <td>   </td> <td colspan="2"> Income </td> <td>   </td> <td>   </td> <td colspan="2"> Recorded </td> <td>   </td> <td>   </td> <td colspan="2"> Income </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td> Investment </td> <td>   </td> <td>   </td> <td>   </td> <td> Recognized </td> <td>   </td> <td>   </td> <td>   </td> <td> Investment </td> <td>   </td> <td>   </td> <td>   </td> <td> Recognized </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> With no related allowance recorded </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td> $ </td> <td> 5,566 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 41 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 4,962 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 45 </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td>   </td> <td> 1,933 </td> <td>   </td> <td>   </td> <td>   </td> <td> 30 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,934 </td> <td>   </td> <td>   </td> <td>   </td> <td> 27 </td> <td>   </td> </tr> <tr> <td> Residential - 1 to 4 family </td> <td>   </td> <td>   </td> <td> 1,069 </td> <td>   </td> <td>   </td> <td>   </td> <td> 11 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,082 </td> <td>   </td> <td>   </td> <td>   </td> <td> 12 </td> <td>   </td> </tr> <tr> <td> Total </td> <td>   </td> <td>   </td> <td> 8,568 </td> <td>   </td> <td>   </td> <td>   </td> <td> 82 </td> <td>   </td> <td>   </td> <td>   </td> <td> 7,978 </td> <td>   </td> <td>   </td> <td>   </td> <td> 84 </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> With an allowance recorded </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Commercial </td> <td>   </td> <td> $ </td> <td> 4,102 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 8 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 4,125 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 8 </td> <td>   </td> </tr> <tr> <td> Commercial real estate construction </td> <td>   </td> <td>   </td> <td> 8,400 </td> <td>   </td> <td>   </td> <td>   </td> <td> 37 </td> <td>   </td> <td>   </td> <td>   </td> <td> 8,402 </td> <td>   </td> <td>   </td> <td>   </td> <td> 65 </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td>   </td> <td> 6,710 </td> <td>   </td> <td>   </td> <td>   </td> <td> 11 </td> <td>   </td> <td>   </td> <td>   </td> <td> 6,746 </td> <td>   </td> <td>   </td> <td>   </td> <td> 9 </td> <td>   </td> </tr> <tr> <td> Residential- 1 to 4 family </td> <td>   </td> <td>   </td> <td> 2,255 </td> <td>   </td> <td>   </td> <td>   </td> <td> 18 </td> <td>   </td> <td>   </td> <td>   </td> <td> 2,256 </td> <td>   </td> <td>   </td> <td>   </td> <td> 20 </td> <td>   </td> </tr> <tr> <td> Total </td> <td>   </td> <td>   </td> <td> 21,467 </td> <td>   </td> <td>   </td> <td>   </td> <td> 74 </td> <td>   </td> <td>   </td> <td>   </td> <td> 21,529 </td> <td>   </td> <td>   </td> <td>   </td> <td> 102 </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Total </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td> $ </td> <td> 9,667 </td> <td>   </td> <td>   </td> <td>   </td> <td> 49 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 9,087 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 53 </td> <td>   </td> </tr> <tr> <td> Commercial real estate construction </td> <td>   </td> <td>   </td> <td> 8,400 </td> <td>   </td> <td>   </td> <td>   </td> <td> 37 </td> <td>   </td> <td>   </td> <td>   </td> <td> 8,402 </td> <td>   </td> <td>   </td> <td>   </td> <td> 65 </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td>   </td> <td> 8,643 </td> <td>   </td> <td>   </td> <td>   </td> <td> 41 </td> <td>   </td> <td>   </td> <td>   </td> <td> 8,680 </td> <td>   </td> <td>   </td> <td>   </td> <td> 36 </td> <td>   </td> </tr> <tr> <td> Residential - 1 to 4 family </td> <td>   </td> <td>   </td> <td> 3,325 </td> <td>   </td> <td>   </td> <td>   </td> <td> 29 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,338 </td> <td>   </td> <td>   </td> <td>   </td> <td> 32 </td> <td>   </td> </tr> <tr> <td> Grand total </td> <td>   </td> <td> $ </td> <td> 30,035 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 156 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 29,507 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 186 </td> <td>   </td> </tr> </table><br/><p> Nonaccrual loans totaled $19,030,000 and $19,098,000 as of June 30, 2012 and December 31, 2011. The difference between impaired loans and nonaccrual loans represents loans that are restructured, are performing under modified agreements, and accruing interest. </p><br/><p> The following aggregate information is provided at June 30, 2012 and December 31, 2011, about the contractual balances of nonaccrual loans: </p><br/><table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td>   </td> <td colspan="6"> Loans on Nonaccrual Status as of </td> <td>   </td> </tr> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2"> June 30, </td> <td>   </td> <td>   </td> <td colspan="2"> December 31, </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> 2012 </td> <td>   </td> <td>   </td> <td colspan="2"> 2011 </td> <td>   </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td> $ </td> <td> 5,805 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 7,019 </td> <td>   </td> </tr> <tr> <td> Real estate - construction </td> <td>   </td> <td>   </td> <td> 115 </td> <td>   </td> <td>   </td> <td>   </td> <td> 642 </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td>   </td> <td> 5,102 </td> <td>   </td> <td>   </td> <td>   </td> <td> 6,826 </td> <td>   </td> </tr> <tr> <td> Real estate multi-family </td> <td>   </td> <td>   </td> <td> 3,242 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,283 </td> <td>   </td> </tr> <tr> <td> Real estate 1 to 4 family </td> <td>   </td> <td>   </td> <td> 4,756 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,328 </td> <td>   </td> </tr> <tr> <td> Consumer </td> <td>   </td> <td>   </td> <td> 10 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td> Total </td> <td>   </td> <td> $ </td> <td> 19,030 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 19,098 </td> <td>   </td> </tr> </table><br/><p> Interest income on impaired loans of $275,000 and $481,000 was recognized for the three and six months ended June 30, 2012, and $1,143,000 was recognized from cash payments received during the year ended December 31, 2011. The amount of interest on impaired loans not collected for the three and six months ended June 30, 2012 was $355,000 and $768,000, and the year ended December 31, 2011 was $1,137,000. The cumulative amount of unpaid interest on impaired loans was $250,000 and $513,000 for the three and six months ended June 30, 2012, and $1,967,000 for the year ended December 31, 2011. </p><br/><p> The Company offers a variety of modifications to borrowers. The modification categories offered can generally be described in the following categories. </p><br/><p> <b>Rate Modification</b> – A modification in which the interest rate is changed. </p><br/><p> <b>Term modification</b> – A modification in which the maturity date, timing of payments, or frequency of payments is changed. </p><br/><p> <b>Interest Only Modification</b> – A modification in which the loan is converted to interest only payments for a period of time. </p><br/><p> <b>Payment Modification</b> – A modification in which the dollar amount of the payment is changed, other than an interest only modification described above. </p><br/><p> As of June 30, 2012 and 2011, respectively, there were no available commitments for troubled debt restructurings. </p><br/><p> A summary of the number, principal amounts outstanding for troubled debt restructurings were as follows as of June 30, 2012 and December 31, 2011. </p><br/><table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td>   </td> <td colspan="10"> <b>Modifications</b> </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="10"> <b>As of June 30, 2012</b> </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Pre- </td> <td>   </td> <td>   </td> <td colspan="2"> Post- </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Modification </td> <td>   </td> <td>   </td> <td colspan="2"> Modification </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Outstanding </td> <td>   </td> <td>   </td> <td colspan="2"> Outstanding </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Number of </td> <td>   </td> <td>   </td> <td colspan="2"> Recorded </td> <td>   </td> <td>   </td> <td colspan="2"> Recorded </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Contracts </td> <td>   </td> <td>   </td> <td colspan="2"> Investment </td> <td>   </td> <td>   </td> <td colspan="2"> Investment </td> <td>   </td> </tr> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td>   </td> <td> 6 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 3,584 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 3,584 </td> <td>   </td> </tr> <tr> <td> Real estate 1 to 4 family </td> <td>   </td> <td>   </td> <td> 3 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,481 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,481 </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td>   </td> <td> 4 </td> <td>   </td> <td>   </td> <td>   </td> <td> 5,299 </td> <td>   </td> <td>   </td> <td>   </td> <td> 5,299 </td> <td>   </td> </tr> <tr> <td> Real estate multi family </td> <td>   </td> <td>   </td> <td> 1 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,242 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,242 </td> <td>   </td> </tr> <tr> <td> Total </td> <td>   </td> <td>   </td> <td> 14 </td> <td>   </td> <td>   </td> <td>   </td> <td> 13,606 </td> <td>   </td> <td>   </td> <td>   </td> <td> 13,606 </td> <td>   </td> </tr> </table><br/><table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td>   </td> <td colspan="11"> <b>Modifications</b> </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="11"> <b>As of March 31, 2012</b> </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="11">   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Pre- </td> <td>   </td> <td>   </td> <td colspan="2"> Post- </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Modification </td> <td>   </td> <td>   </td> <td colspan="2"> Modification </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Outstanding </td> <td>   </td> <td>   </td> <td colspan="2"> Outstanding </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Number of </td> <td>   </td> <td>   </td> <td colspan="2"> Recorded </td> <td>   </td> <td>   </td> <td colspan="2"> Recorded </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Contracts </td> <td>   </td> <td>   </td> <td colspan="2"> Investment </td> <td>   </td> <td>   </td> <td colspan="2"> Investment </td> <td>   </td> </tr> <tr> <td> Troubled Debt Restructurings: </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td>   </td> <td> 5 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 2,925 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 2,925 </td> <td>   </td> </tr> <tr> <td> Real estate 1 to 4 family </td> <td>   </td> <td>   </td> <td> 2 </td> <td>   </td> <td>   </td> <td>   </td> <td> 994 </td> <td>   </td> <td>   </td> <td>   </td> <td> 994 </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td>   </td> <td> 5 </td> <td>   </td> <td>   </td> <td>   </td> <td> 6,021 </td> <td>   </td> <td>   </td> <td>   </td> <td> 6,021 </td> <td>   </td> </tr> <tr> <td> Real estate multi family </td> <td>   </td> <td>   </td> <td> 1 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,262 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,262 </td> <td>   </td> </tr> <tr> <td> Total </td> <td>   </td> <td>   </td> <td> 13 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 13,202 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 13,202 </td> <td>   </td> </tr> </table><br/><p> None of these loans defaulted within twelve months following the date of restructure. All restructurings were a modification of interest rate and/or impairment. There were no principal reductions granted. </p><br/><table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td colspan="12"> <b>Modifications</b> </td> </tr> <tr> <td>   </td> <td colspan="12"> <b>As of December 31, 2011</b> </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Pre- </td> <td>   </td> <td>   </td> <td colspan="2"> Post- </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Modification </td> <td>   </td> <td>   </td> <td colspan="2"> Modification </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Outstanding </td> <td>   </td> <td>   </td> <td colspan="2"> Outstanding </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Number of </td> <td>   </td> <td>   </td> <td colspan="2"> Recorded </td> <td>   </td> <td>   </td> <td colspan="2"> Recorded </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Contracts </td> <td>   </td> <td>   </td> <td colspan="2"> Investment </td> <td>   </td> <td>   </td> <td colspan="2"> Investment </td> <td>   </td> </tr> <tr> <td> (Amounts in thousands) </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td>   </td> <td> 5 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 2,987 </td> <td> $ </td> <td>   </td> <td>   </td> <td> 2,987 </td> <td>   </td> </tr> <tr> <td> Real estate 1 to 4 family </td> <td>   </td> <td>   </td> <td> 2 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,004 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,004 </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td>   </td> <td> 6 </td> <td>   </td> <td>   </td> <td>   </td> <td> 9,173 </td> <td>   </td> <td>   </td> <td>   </td> <td> 9,173 </td> <td>   </td> </tr> <tr> <td> Real estate multi family </td> <td>   </td> <td>   </td> <td> 1 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,283 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,283 </td> <td>   </td> </tr> <tr> <td> Total </td> <td>   </td> <td>   </td> <td> 14 </td> <td>   </td> <td>   </td> <td>   </td> <td> 16,447 </td> <td>   </td> <td>   </td> <td>   </td> <td> 16,447 </td> <td>   </td> </tr> </table><br/><p> <u>Risk rating system</u> </p><br/><p> Loans to borrowers graded as pass or pooled loans represent loans to borrowers of acceptable or better credit quality. They demonstrate sound financial positions, repayment capacity and credit history. They have an identifiable and stable source of repayment. </p><br/><p> Special mention loans have potential weaknesses that deserve management’s attention. If left uncorrected these potential weaknesses may result in a deterioration of the repayment prospects for the asset or in the Bank’s credit position at some future date. These assets are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification. </p><br/><p> Substandard loans are inadequately protected by current sound net worth, paying capacity of the borrower, or pledged collateral. Loans are normally classified as Substandard when there are unsatisfactory characteristics causing more than acceptable levels of risk. A substandard loan normally has one or more well-defined weakness that could jeopardize the repayment of the debt. For example, a) cash flow deficiency, which may jeopardize future payments; b) sale of non-collateral assets has become primary source of repayment; c) the borrower is bankrupt; or d) for any other reason, future repayment is dependent on court action. </p><br/><p> Doubtful loans represent credits with weakness inherent in the Substandard classification and where collection or liquidation in full is highly questionable. To be classified Doubtful, there must be specific pending factors which prevent the Loan Review Officer from determining the amount of loss contained in the credit. When the amount of loss can be reasonably estimated, that amount is classified as “loss” and the remainder is classified as Substandard. </p><br/><p> <i>Commercial Real Estate Loans</i> </p><br/><p> Our commercial real estate loans are made primarily to investors or small businesses where our primary source of repayment is from cash flows generated by the properties, either through rent collection or business profits. The borrower’s promissory notes are secured with recorded liens on the underlying property. The borrowers would normally also be required to personally guarantee repayment of the loan. The Bank uses conservative underwriting standards in reviewing applications for credit. Generally, our borrowers have multiple sources of income, so if cash flow generated from the property declines, at least in the short term, the borrowers can normally cover these short term cash flow deficiencies from their available cash reserves. Risk of loss to the Bank is increased when there are cash flow decreases sufficiently large and for such a prolonged period of time that loan payments can no longer be made by the borrowers. </p><br/><p> Our real estate construction loans are generally made to borrowers who are rehabilitating a building, converting a building use from one type of use to another, or developing land and building residential or commercial structures for sale or lease. The borrower’s promissory notes are secured with recorded liens on the underlying property. The borrowers would normally also be required to personally guarantee repayment of the loan. The Bank uses conservative underwriting standards in reviewing applications for credit. Generally, our borrowers have sufficient resources to make the required construction loan payments during the construction and absorption or lease-up period. After construction is complete, the loans are normally paid off from proceeds from the sale of the building or through a refinance to a commercial real estate loan. Risk of loss to the Bank is increased when there are material construction cost overruns, significant delays in the time to complete the project and/or there has been a material drop in the value of the projects in the marketplace since the inception of the loan. </p><br/><p> <i>Commercial and Industrial Loans</i> </p><br/><p> Our commercial and industrial loans are generally made to small businesses to provide them with at least some of the working capital necessary to fund their daily business operations. These loans are generally either unsecured or secured by fixed assets, accounts receivable and/or inventory. The borrowers would normally also be required to personally guarantee repayment of the loan. The Bank uses conservative underwriting standards in reviewing applications for credit. Risk of loss to the Bank is increased when our small business customers experience a significant business downturn, incur significant financial losses, or file for relief from creditors through bankruptcy proceedings. </p><br/><p> <i>Residential Real Estate Loans</i> </p><br/><p> Our residential real estate loans are generally made to borrowers who are buying or refinancing their primary personal residence or a rental property of 1-4 single family residential units. The Bank uses conservative underwriting standards in reviewing applications for credit. Risk of loss to the Bank is increased when borrowers lose their primary source of income and/or property values decline significantly. </p><br/><p> <i>Consumer and installment Loans</i> </p><br/><p> Our consumer and installment loans generally consist of personal loans, credit card loans, automobile loans or other loans secured by personal property. The Bank uses conservative underwriting standards in reviewing applications for credit. Risk of loss to the Bank is increased when borrowers lose their primary source of income, or file for relief from creditors through bankruptcy proceedings. </p><br/><table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td>   </td> <td colspan="27"> <b>Age Analysis of Past Due Loans<br /> As of June 30, 2012</b> </td> </tr> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> 30-59 </td> <td>   </td> <td>   </td> <td colspan="2"> 60-89 </td> <td>   </td> <td>   </td> <td colspan="2"> Greater </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Recorded </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Days </td> <td>   </td> <td>   </td> <td colspan="2"> Days </td> <td>   </td> <td>   </td> <td colspan="2"> Than </td> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Investment > </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Past </td> <td>   </td> <td>   </td> <td colspan="2"> Past </td> <td>   </td> <td>   </td> <td colspan="2"> 90 </td> <td>   </td> <td>   </td> <td colspan="2"> Past </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> <td>   </td> <td colspan="2"> 90 Days and </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Due </td> <td>   </td> <td>   </td> <td colspan="2"> Due </td> <td>   </td> <td>   </td> <td colspan="2"> Days </td> <td>   </td> <td>   </td> <td colspan="2"> Due </td> <td>   </td> <td>   </td> <td colspan="2"> Current </td> <td>   </td> <td>   </td> <td colspan="2"> Loans </td> <td>   </td> <td>   </td> <td colspan="2"> Accruing </td> <td>   </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td> $ </td> <td> 483 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 38 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 3,645 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 4,166 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 49,396 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 53,562 </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td>   </td> <td> 500 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 5,102 </td> <td>   </td> <td>   </td> <td>   </td> <td> 5,602 </td> <td>   </td> <td>   </td> <td>   </td> <td> 239,151 </td> <td>   </td> <td>   </td> <td>   </td> <td> 244,753 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td> Commercial real estate -construction </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 25,644 </td> <td>   </td> <td>   </td> <td>   </td> <td> 25,644 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td> Real estate multi-family </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,242 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,242 </td> <td>   </td> <td>   </td> <td>   </td> <td> 36,718 </td> <td>   </td> <td>   </td> <td>   </td> <td> 39,960 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td> Residential </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 69 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,775 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,844 </td> <td>   </td> <td>   </td> <td>   </td> <td> 92,042 </td> <td>   </td> <td>   </td> <td>   </td> <td> 95,886 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td> Consumer </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 2,037 </td> <td>   </td> <td>   </td> <td>   </td> <td> 2,037 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td> Total </td> <td>   </td> <td> $ </td> <td> 983 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 107 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 15,764 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 16,854 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 444,988 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 461,842 </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> </tr> </table><br/><table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td>   </td> <td colspan="25"> <b>Age Analysis of Past Due Loans<br /> As of December 31, 2011</b> </td> </tr> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> 30-59<br /> Days </td> <td>   </td> <td>   </td> <td colspan="2"> 60-89<br /> Days </td> <td>   </td> <td>   </td> <td colspan="2"> Over </td> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td> Recorded Investment > </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Past </td> <td>   </td> <td>   </td> <td colspan="2"> Past </td> <td>   </td> <td>   </td> <td colspan="2"> 90 </td> <td>   </td> <td>   </td> <td colspan="2"> Past </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> <td>   </td> <td> 90 Days and </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Due </td> <td>   </td> <td>   </td> <td colspan="2"> Due </td> <td>   </td> <td>   </td> <td colspan="2"> Days </td> <td>   </td> <td>   </td> <td colspan="2"> Due </td> <td>   </td> <td>   </td> <td colspan="2"> Current </td> <td>   </td> <td>   </td> <td colspan="2"> Loans </td> <td>   </td> <td>   </td> <td> Accruing </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td> $ </td> <td> 247 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 712 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 232 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 1,191 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 41,883 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 43,074 </td> <td>   </td> <td> $ </td> <td> — </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td>   </td> <td> 1,618 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 10,109 </td> <td>   </td> <td>   </td> <td>   </td> <td> 11,727 </td> <td>   </td> <td>   </td> <td>   </td> <td> 245,686 </td> <td>   </td> <td>   </td> <td>   </td> <td> 257,413 </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Commercial real estate -construction </td> <td>   </td> <td>   </td> <td> 549 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 527 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,076 </td> <td>   </td> <td>   </td> <td>   </td> <td> 27,153 </td> <td>   </td> <td>   </td> <td>   </td> <td> 28,229 </td> <td>   </td> <td>   </td> <td> — </td> </tr> <tr> <td> Real estate multi-family </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 36,369 </td> <td>   </td> <td>   </td> <td>   </td> <td> 36,369 </td> <td>   </td> <td>   </td> <td> — </td> </tr> <tr> <td> Real estate 1 to 4 family </td> <td>   </td> <td>   </td> <td> 71 </td> <td>   </td> <td>   </td> <td>   </td> <td> 2,629 </td> <td>   </td> <td>   </td> <td>   </td> <td> 257 </td> <td>   </td> <td>   </td> <td>   </td> <td> 2,957 </td> <td>   </td> <td>   </td> <td>   </td> <td> 83,365 </td> <td>   </td> <td>   </td> <td>   </td> <td> 86,322 </td> <td>   </td> <td>   </td> <td> — </td> </tr> <tr> <td> Consumer </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 2,335 </td> <td>   </td> <td>   </td> <td>   </td> <td> 2,335 </td> <td>   </td> <td>   </td> <td> — </td> </tr> <tr> <td> Total </td> <td>   </td> <td> $ </td> <td> 2,485 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 3,341 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 11,125 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 16,951 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 436,791 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 453,742 </td> <td>   </td> <td> $ </td> <td> — </td> </tr> </table><br/><p> $19,030,000 and $19,098,000 in nonaccrual loans included past due loans of $16,854,000 and $16,951,000 at June 30, 2012 and December 31, 2011. </p><br/><table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td>   </td> <td colspan="11"> <b>Credit Quality Indicators<br /> As of June 30, 2012</b> </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Special </td> <td>   </td> <td>   </td> <td colspan="2"> Sub- </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Pass </td> <td>   </td> <td>   </td> <td colspan="2"> mention </td> <td>   </td> <td>   </td> <td colspan="2"> standard </td> <td>   </td> <td>   </td> <td colspan="2"> Doubtful </td> <td>   </td> <td>   </td> <td colspan="2"> loans </td> <td>   </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td> $ </td> <td> 50,525 </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> <td>   </td> <td> $ </td> <td> 2,705 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 332 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 53,562 </td> <td>   </td> </tr> <tr> <td> Real estate construction </td> <td>   </td> <td>   </td> <td> 23,929 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,715 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 25,644 </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td>   </td> <td> 233,798 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,377 </td> <td>   </td> <td>   </td> <td>   </td> <td> 7,578 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 244,753 </td> <td>   </td> </tr> <tr> <td> Real estate multi-family </td> <td>   </td> <td>   </td> <td> 36,718 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,242 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 39,960 </td> <td>   </td> </tr> <tr> <td> Real estate 1 to 4 family </td> <td>   </td> <td>   </td> <td> 91,086 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 4,444 </td> <td>   </td> <td>   </td> <td>   </td> <td> 356 </td> <td>   </td> <td>   </td> <td>   </td> <td> 95,886 </td> <td>   </td> </tr> <tr> <td> Consumer loans </td> <td>   </td> <td>   </td> <td> 2,027 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 10 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 2,037 </td> <td>   </td> </tr> <tr> <td> Totals </td> <td>   </td> <td> $ </td> <td> 438,083 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 3,377 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 19,694 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 688 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 461,842 </td> <td>   </td> </tr> </table><br/><table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td>   </td> <td colspan="10"> Credit Quality Indicators </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="10"> As of December 31, 2011 </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Special </td> <td>   </td> <td>   </td> <td colspan="2"> Sub- </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Pass </td> <td>   </td> <td>   </td> <td colspan="2"> mention </td> <td>   </td> <td>   </td> <td colspan="2"> standard </td> <td>   </td> <td>   </td> <td colspan="2"> Doubtful </td> <td>   </td> <td>   </td> <td colspan="2"> loans </td> <td>   </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td> $ </td> <td> 35,089 </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> <td>   </td> <td> $ </td> <td> 7,720 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 265 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 43,074 </td> <td>   </td> </tr> <tr> <td> Real estate construction </td> <td>   </td> <td>   </td> <td> 25,987 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 2,242 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 28,229 </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td>   </td> <td> 247,253 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 10,160 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 257,413 </td> <td>   </td> </tr> <tr> <td> Real estate multi-family </td> <td>   </td> <td>   </td> <td> 33,085 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,284 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 36,369 </td> <td>   </td> </tr> <tr> <td> Real estate 1 to 4 family </td> <td>   </td> <td>   </td> <td> 82,014 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,862 </td> <td>   </td> <td>   </td> <td>   </td> <td> 446 </td> <td>   </td> <td>   </td> <td>   </td> <td> 86,322 </td> <td>   </td> </tr> <tr> <td> Consumer loans </td> <td>   </td> <td>   </td> <td> 2,335 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 2,335 </td> <td>   </td> </tr> <tr> <td> Totals </td> <td>   </td> <td> $ </td> <td> 425,763 </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> <td>   </td> <td> $ </td> <td> 27,268 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 711 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 453,742 </td> <td>   </td> </tr> </table><br/><p> <b>Allowance for Credit Losses<br /> For the Three Months Ended June 30, 2012</b> </p><br/><table cellpadding="0" cellspacing="0"> <tr> <td colspan="5"> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="14"> Real Estate </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Commercial </td> <td>   </td> <td>   </td> <td colspan="2"> </td> <td>   </td> <td>   </td> <td colspan="2"> </td> <td>   </td> <td>   </td> <td colspan="2"> Multi </td> <td>   </td> <td>   </td> <td colspan="2"> 1 to </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> & industrial </td> <td>   </td> <td>   </td> <td colspan="2"> Commercial </td> <td>   </td> <td>   </td> <td colspan="2"> Construction </td> <td>   </td> <td>   </td> <td colspan="2"> family </td> <td>   </td> <td>   </td> <td colspan="2"> 4 family </td> <td>   </td> <td>   </td> <td colspan="2"> Consumer </td> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> </tr> <tr> <td> Allowance for credit losses </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Beginning balance </td> <td>   </td> <td> $ </td> <td> 1,628 </td> <td> </td> <td>   </td> <td> $ </td> <td> 3,592 </td> <td> </td> <td>   </td> <td> $ </td> <td> 1,055 </td> <td> </td> <td>   </td> <td> $ </td> <td> 151 </td> <td> </td> <td>   </td> <td> $ </td> <td> 1,798 </td> <td> </td> <td>   </td> <td> $ </td> <td> 63 </td> <td> </td> <td>   </td> <td> $ </td> <td> 8,287 </td> <td>   </td> </tr> <tr> <td> Charge-offs </td> <td>   </td> <td>   </td> <td> (312) </td> <td> </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> (54 </td> <td> ) </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td> </td> <td>   </td> <td>   </td> <td> (1) </td> <td>   </td> <td>   </td> <td>   </td> <td> (367 </td> <td> ) </td> </tr> <tr> <td> Recoveries </td> <td>   </td> <td>   </td> <td> — </td> <td> </td> <td>   </td> <td>   </td> <td> (2 </td> <td> ) </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 139 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1 </td> <td>   </td> <td>   </td> <td>   </td> <td> 138 </td> <td>   </td> </tr> <tr> <td> Provision </td> <td>   </td> <td>   </td> <td> 418 </td> <td>   </td> <td>   </td> <td>   </td> <td> 162 </td> <td>   </td> <td>   </td> <td>   </td> <td> (167 </td> <td> ) </td> <td>   </td> <td>   </td> <td> (102 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 89 </td> <td>   </td> <td>   </td> <td>   </td> <td> 0 </td> <td>   </td> <td>   </td> <td>   </td> <td> 400 </td> <td>   </td> </tr> <tr> <td> Ending balance </td> <td>   </td> <td> $ </td> <td> 1,734 </td> <td> </td> <td>   </td> <td> $ </td> <td> 3,752 </td> <td> </td> <td>   </td> <td> $ </td> <td> 834 </td> <td> </td> <td>   </td> <td> $ </td> <td> 49 </td> <td> </td> <td>   </td> <td> $ </td> <td> 2,026 </td> <td> </td> <td>   </td> <td> $ </td> <td> 63 </td> <td> </td> <td>   </td> <td> $ </td> <td> 8,458 </td> <td>   </td> </tr> <tr> <td> </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Ending balance: individually evaluated for impairment </td> <td>   </td> <td> $ </td> <td> 505 </td> <td> </td> <td>   </td> <td> $ </td> <td> 477 </td> <td> </td> <td>   </td> <td> $ </td> <td> 75 </td> <td> </td> <td>   </td> <td> $ </td> <td> 42 </td> <td> </td> <td>   </td> <td> $ </td> <td> 157 </td> <td> </td> <td>   </td> <td> $ </td> <td> 1 </td> <td> </td> <td>   </td> <td> $ </td> <td> 1,257 </td> <td>   </td> </tr> <tr> <td> Ending balance: collectively evaluated for impairment </td> <td>   </td> <td> $ </td> <td> 1,229 </td> <td> </td> <td>   </td> <td> $ </td> <td> 3,275 </td> <td> </td> <td>   </td> <td> $ </td> <td> 759 </td> <td> </td> <td>   </td> <td> $ </td> <td> 7 </td> <td> </td> <td>   </td> <td> $ </td> <td> 1,869 </td> <td> </td> <td>   </td> <td>  $ </td> <td> 62 </td> <td> </td> <td>   </td> <td> $ </td> <td> 7,201 </td> <td>   </td> </tr> </table><br/><p> <b>Allowance for Credit Losses<br /> For the Six Months Ended June 30, 2012</b> </p><br/><table cellspacing="0" cellpadding="0"> <tr> <td colspan="5"> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Real Estate </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Commercial </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Multi </td> <td>   </td> <td>   </td> <td colspan="2"> 1 to </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> & industrial </td> <td>   </td> <td>   </td> <td colspan="2"> Commercial </td> <td>   </td> <td>   </td> <td colspan="2"> Construction </td> <td>   </td> <td>   </td> <td colspan="2"> family </td> <td>   </td> <td>   </td> <td colspan="2"> 4 family </td> <td>   </td> <td>   </td> <td colspan="2"> Consumer </td> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> </tr> <tr> <td> Allowance for credit losses </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Beginning balance </td> <td>   </td> <td> $ </td> <td> 1,618 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 4,745 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 1,171 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 671 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 1,592 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 100 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 9,897 </td> <td>   </td> </tr> <tr> <td> Charge-offs </td> <td>   </td> <td>   </td> <td> (1,487 </td> <td> ) </td> <td>   </td> <td>   </td> <td> (738 </td> <td> ) </td> <td>   </td> <td>   </td> <td> (54 </td> <td> ) </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> (109 </td> <td> ) </td> <td>   </td> <td>   </td> <td> (4) </td> <td>   </td> <td>   </td> <td>   </td> <td> (2,392 </td> <td> ) </td> </tr> <tr> <td> Recoveries </td> <td>   </td> <td>   </td> <td> 1 </td> <td>   </td> <td>   </td> <td>   </td> <td> 0 </td> <td>   </td> <td>   </td> <td>   </td> <td> 0 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 148 </td> <td>   </td> <td>   </td> <td>   </td> <td> 4 </td> <td>   </td> <td>   </td> <td>   </td> <td> 153 </td> <td>   </td> </tr> <tr> <td> Provision </td> <td>   </td> <td>   </td> <td> 1,602 </td> <td>   </td> <td>   </td> <td>   </td> <td> (255 </td> <td> ) </td> <td>   </td> <td>   </td> <td> (283 </td> <td> ) </td> <td>   </td> <td>   </td> <td> (622 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 395 </td> <td>   </td> <td>   </td> <td>   </td> <td> (37 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 800 </td> <td>   </td> </tr> <tr> <td> Ending balance </td> <td>   </td> <td> $ </td> <td> 1,734 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 3,752 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 834 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 49 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 2,026 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 63 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 8,458 </td> <td>   </td> </tr> <tr> <td> Ending balance: individually evaluated for impairment </td> <td>   </td> <td> $ </td> <td> 505 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 477 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 75 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 42 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 157 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 1 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 1,257 </td> <td>   </td> </tr> <tr> <td> Ending balance: collectively evaluated for impairment </td> <td>   </td> <td> $ </td> <td> 1,229 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 3,275 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 759 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 7 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 1,869 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 62 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 7,201 </td> <td>   </td> </tr> </table><br/><p> <b>Recorded Investment in Loans at June 30, 2012</b> </p><br/><table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td>   </td> <td colspan="2"> Commercial </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Multi </td> <td>   </td> <td>   </td> <td colspan="2"> 1 to </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> & industrial </td> <td>   </td> <td>   </td> <td colspan="2"> Commercial </td> <td>   </td> <td>   </td> <td colspan="2"> Construction </td> <td>   </td> <td>   </td> <td colspan="2"> family </td> <td>   </td> <td>   </td> <td colspan="2"> 4 family </td> <td>   </td> <td>   </td> <td colspan="2"> Consumer </td> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td> Loans: </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Ending balance </td> <td>   </td> <td> $ </td> <td> 53,562 </td> <td> </td> <td> </td> <td> $ </td> <td> 244,753 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 25,644 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 39,960 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 95,886 </td> <td> </td> <td>   </td> <td> $ </td> <td> 2,037 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 461,842 </td> <td>   </td> </tr> <tr> <td> Ending balance: individually evaluated for impairment </td> <td>   </td> <td> $ </td> <td> 7,082 </td> <td> </td> <td>   </td> <td> $ </td> <td> 9,471 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 7,238 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 3,242 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 6,443 </td> <td> </td> <td>   </td> <td> $ </td> <td> 10 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 33,486 </td> <td>   </td> </tr> <tr> <td> </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Ending balance: collectively evaluated for impairment </td> <td>   </td> <td> $ </td> <td> 46,480 </td> <td> </td> <td>   </td> <td> $ </td> <td> 235,282 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 18,406 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 36,718 </td> <td> </td> <td> </td> <td> $ </td> <td> 89,443 </td> <td> </td> <td> </td> <td> $ </td> <td> 2,027 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 428,356 </td> <td>   </td> </tr> </table><br/><p> <b>Allowance for Credit Losses<br /> For the Three Months Ended June 30, 2011</b> </p><br/><table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td>   </td> <td colspan="2"> Commercial </td> <td>   </td> <td>   </td> <td colspan="2"> Commercial </td> <td>   </td> <td>   </td> <td colspan="2"> Real estate </td> <td>   </td> <td>   </td> <td colspan="2"> Real estate </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> & industrial </td> <td>   </td> <td>   </td> <td colspan="2"> real estate </td> <td>   </td> <td>   </td> <td colspan="2"> construction </td> <td>   </td> <td>   </td> <td colspan="2"> 1 to 4 family </td> <td>   </td> <td>   </td> <td colspan="2"> Consumer </td> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> </tr> <tr> <td> Allowance for credit losses </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td> Beginning balance </td> <td>   </td> <td> $ </td> <td> 1,605 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 4,360 </td> <td> </td> <td>   </td> <td> $ </td> <td> 2,105 </td> <td> </td> <td>   </td> <td> $ </td> <td> 1,605 </td> <td> </td> <td>   </td> <td> $ </td> <td> 109 </td> <td> </td> <td>   </td> <td> $ </td> <td> 9,784 </td> <td>   </td> </tr> <tr> <td> Charge-offs </td> <td>   </td> <td>   </td> <td> 100 </td> <td>   </td> <td>   </td> <td>   </td> <td> (525 </td> <td> ) </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> (50 </td> <td> ) </td> <td>   </td> <td>   </td> <td> (475 </td> <td> ) </td> </tr> <tr> <td> Recoveries </td> <td>   </td> <td>   </td> <td> 1 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 9 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 10 </td> <td>   </td> </tr> <tr> <td> Provision </td> <td>   </td> <td>   </td> <td> 583 </td> <td>   </td> <td>   </td> <td>   </td> <td> 530 </td> <td>   </td> <td>   </td> <td>   </td> <td> (578 </td> <td> ) </td> <td>   </td> <td>   </td> <td> (145 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 10 </td> <td>   </td> <td>   </td> <td>   </td> <td> 400 </td> <td>   </td> </tr> <tr> <td> Ending balance </td> <td>   </td> <td> $ </td> <td> 2,289 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 4,365 </td> <td> </td> <td>   </td> <td> $ </td> <td> 1,536 </td> <td> </td> <td>   </td> <td> $ </td> <td> 1,460 </td> <td> </td> <td>   </td> <td> $ </td> <td> 69 </td> <td> </td> <td>   </td> <td> $ </td> <td> 9,719 </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Ending balance: individually evaluated for impairment </td> <td>   </td> <td> $ </td> <td> 1,223 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 858 </td> <td> </td> <td>   </td> <td> $ </td> <td> 143 </td> <td> </td> <td>   </td> <td> $ </td> <td> 176 </td> <td> </td> <td>   </td> <td> $ </td> <td> — </td> <td> </td> <td>   </td> <td> $ </td> <td> 2,400 </td> <td>   </td> </tr> <tr> <td> </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Ending balance: collectively evaluated for impairment </td> <td>   </td> <td> $ </td> <td> 1,066 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 3,507 </td> <td> </td> <td>   </td> <td> $ </td> <td> 1,393 </td> <td> </td> <td>   </td> <td> $ </td> <td> 1,284 </td> <td> </td> <td>   </td> <td> $ </td> <td> 69 </td> <td> </td> <td>   </td> <td> $ </td> <td> 7,319 </td> <td>   </td> </tr> </table><br/><table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td>   </td> <td colspan="2"> Commercial </td> <td>   </td> <td>   </td> <td colspan="2"> Commercial </td> <td>   </td> <td>   </td> <td colspan="2"> Real Estate </td> <td>   </td> <td>   </td> <td colspan="2"> 1 to </td> <td>   </td> <td>   </td> <td colspan="2"> </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> & industrial </td> <td>   </td> <td>   </td> <td colspan="2"> Real Estate </td> <td>   </td> <td>   </td> <td colspan="2"> Construction </td> <td>   </td> <td>   </td> <td colspan="2"> 4 family </td> <td>   </td> <td>   </td> <td colspan="2"> Consumer </td> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> </tr> <tr> <td> Allowance for credit losses </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Beginning balance </td> <td>   </td> <td> $ </td> <td> 2,102 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 4,103 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 1,999 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,233 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 87 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 9,524 </td> <td>   </td> </tr> <tr> <td> Charge-offs </td> <td>   </td> <td>   </td> <td> (100 </td> <td> ) </td> <td>   </td> <td>   </td> <td> (525 </td> <td> ) </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> (53 </td> <td> ) </td> <td>   </td> <td>   </td> <td> (678 </td> <td> ) </td> </tr> <tr> <td> Recoveries </td> <td>   </td> <td>   </td> <td> 5 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 18 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 23 </td> <td>   </td> </tr> <tr> <td> Provision </td> <td>   </td> <td>   </td> <td> 282 </td> <td>   </td> <td>   </td> <td>   </td> <td> 787 </td> <td>   </td> <td>   </td> <td>   </td> <td> (481 </td> <td> ) </td> <td>   </td> <td>   </td> <td> 227 </td> <td>   </td> <td>   </td> <td>   </td> <td> 35 </td> <td>   </td> <td>   </td> <td>   </td> <td> 850 </td> <td>   </td> </tr> <tr> <td> Ending balance </td> <td>   </td> <td> $ </td> <td> 2,289 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 4,365 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 1,536 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,460 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 69 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 9,719 </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Ending balance: individually evaluated for impairment </td> <td>   </td> <td> $ </td> <td> 1,223 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 858 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 143 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 176 </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> <td>   </td> <td> $ </td> <td> 2,400 </td> <td>   </td> </tr> <tr> <td> Ending balance: collectively evaluated for impairment </td> <td>   </td> <td> $ </td> <td> 1,066 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 3,507 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 1,393 </td> <td> $ </td> <td>   </td> <td>   </td> <td> 1,284 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 69 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 7,319 </td> <td>   </td> </tr> </table><br/><table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td>   </td> <td colspan="2"> Commercial </td> <td>   </td> <td>   </td> <td colspan="2"> Commercial </td> <td>   </td> <td>   </td> <td colspan="2"> Real estate </td> <td>   </td> <td>   </td> <td colspan="2"> Real estate </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> & industrial </td> <td>   </td> <td>   </td> <td colspan="2"> real estate </td> <td>   </td> <td>   </td> <td colspan="2"> construction </td> <td>   </td> <td>   </td> <td colspan="2"> 1 to 4 family </td> <td>   </td> <td>   </td> <td colspan="2"> Consumer </td> <td>   </td> <td>   </td> <td colspan="2"> Total </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td> Loans: </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Ending balance </td> <td>   </td> <td> $ </td> <td> 43,623 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 315,806 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 29,938 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 77,992 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 2,321 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 469,680 </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Ending balance: individually evaluated for impairment </td> <td>   </td> <td> $ </td> <td> 6,328 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 9,017 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 8,696 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 3,636 </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> <td>   </td> <td> $ </td> <td> 27,677 </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Ending balance: collectively evaluated for impairment </td> <td>   </td> <td> $ </td> <td> 37,295 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 306,789 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 21,242 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 74,356 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 2,321 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 442,003 </td> <td>   </td> </tr> </table><br/> 19030000 19098000 275000 481000 1143000 355000 768000 1137000 250000 513000 1967000 19030000 19098000 16854000 16951000 <table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td>   </td> <td colspan="2"> June 30 </td> <td>   </td> <td>   </td> <td colspan="2"> December 31 </td> <td>   </td> </tr> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2"> 2012 </td> <td>   </td> <td>   </td> <td colspan="2"> 2011 </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td> $ </td> <td> 244,753 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 257,413 </td> <td>   </td> </tr> <tr> <td> Real estate construction </td> <td>   </td> <td>   </td> <td> 25,644 </td> <td>   </td> <td>   </td> <td>   </td> <td> 28,229 </td> <td>   </td> </tr> <tr> <td> Real estate multi-family </td> <td>   </td> <td>   </td> <td> 39,960 </td> <td>   </td> <td>   </td> <td>   </td> <td> 36,369 </td> <td>   </td> </tr> <tr> <td> Real estate 1 to 4 family </td> <td>   </td> <td>   </td> <td> 95,886 </td> <td>   </td> <td>   </td> <td>   </td> <td> 86,322 </td> <td>   </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td>   </td> <td> 53,562 </td> <td>   </td> <td>   </td> <td>   </td> <td> 43,074 </td> <td>   </td> </tr> <tr> <td> Consumer loans </td> <td>   </td> <td>   </td> <td> 2,037 </td> <td>   </td> <td>   </td> <td>   </td> <td> 2,335 </td> <td>   </td> </tr> <tr> <td> Gross loans </td> <td>   </td> <td>   </td> <td> 461,842 </td> <td>   </td> <td>   </td> <td>   </td> <td> 453,742 </td> <td>   </td> </tr> <tr> <td> Net deferred loan fees </td> <td>   </td> <td>   </td> <td> (84 </td> <td> ) </td> <td>   </td> <td>   </td> <td> (124 </td> <td> ) </td> </tr> <tr> <td> Allowance for loan losses </td> <td>   </td> <td>   </td> <td> (8,458 </td> <td> ) </td> <td>   </td> <td>   </td> <td> (9,897 </td> <td> ) </td> </tr> <tr> <td> Net loans </td> <td>   </td> <td> $ </td> <td> 453,300 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 443,721 </td> <td>   </td> </tr> </table> 244753000 257413000 25644000 28229000 39960000 36369000 95886000 86322000 53562000 43074000 2037000 2335000 461842000 453742000 84000 124000 8458000 9897000 453300000 443721000 1751000 2327000 6186000 6186000 2886000 3452000 1527000 1675000 12350000 13640000 3105000 3421000 505000 1052000 1052000 75000 3242000 3369000 42000 8811000 9987000 477000 4916000 4916000 157000

10000

1000

21136000 22755000 1257000 4856000 5748000 505000 7238000 7238000 75000 3242000 3369000 42000 11697000 13439000 477000 6443000 6591000 157000 10000 10000 1000 33486000 36395000 1257000 1840000 29000 1888000 45000 6197000 85000 6209000 109000 2886000 16000 2886000 36000 1539000 15000 1542000 32000 12462000 145000 12525000 222000 3328000 39000 3358000 60000 1054000 14000 1056000 29000 8827000 59000 10033000 130000 3252000 3263000 4916000 18000 4916000 40000 10000 10000 21387000 130000 22636000 259000 5168000 68000 5246000 105000 7251000 99000 7265000 138000 11713000 75000 12919000 166000 3252000 3263000 6455000 33000 6458000 72000 10000 10000 33849000 275000 35161000 481000 <table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td>   </td> <td colspan="11"> Impaired Loans </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="11"> For the Year Ended December 31, 2011 </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Unpaid </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2"> Recorded </td> <td>   </td> <td>   </td> <td colspan="2"> Principal </td> <td>   </td> <td>   </td> <td colspan="2"> Related </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Investment </td> <td>   </td> <td>   </td> <td colspan="2"> Balance </td> <td>   </td> <td>   </td> <td colspan="2"> Allowance </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td> With no related allowance recorded </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td> $ </td> <td> 2,926 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 3,560 </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> </tr> <tr> <td> Commercial real estate construction </td> <td>   </td> <td>   </td> <td> 6,232 </td> <td>   </td> <td>   </td> <td>   </td> <td> 6,232 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td>   </td> <td> 3,269 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,835 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td> Residential- 1 to 4 family </td> <td>   </td> <td>   </td> <td> 1,059 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,145 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td> Total </td> <td>   </td> <td>   </td> <td> 13,486 </td> <td>   </td> <td>   </td> <td>   </td> <td> 14,772 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> With an allowance recorded </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td> $ </td> <td> 5,881 </td> <td>   </td> <td>   </td> <td>   </td> <td> 5,896 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 428 </td> <td>   </td> </tr> <tr> <td> Commercial real estate construction </td> <td>   </td> <td>   </td> <td> 1,586 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,686 </td> <td>   </td> <td>   </td> <td>   </td> <td> 214 </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td>   </td> <td> 11,767 </td> <td>   </td> <td>   </td> <td>   </td> <td> 11,767 </td> <td>   </td> <td>   </td> <td>   </td> <td> 727 </td> <td>   </td> </tr> <tr> <td> Residential- 1 to 4 family </td> <td>   </td> <td>   </td> <td> 2,254 </td> <td>   </td> <td>   </td> <td>   </td> <td> 2,262 </td> <td>   </td> <td>   </td> <td>   </td> <td> 200 </td> <td>   </td> </tr> <tr> <td> Total </td> <td>   </td> <td>   </td> <td> 21,488 </td> <td>   </td> <td>   </td> <td>   </td> <td> 21,611 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,569 </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Total </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td> $ </td> <td> 8,807 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 9,456 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 428 </td> <td>   </td> </tr> <tr> <td> Commercial real estate construction </td> <td>   </td> <td>   </td> <td> 7,818 </td> <td>   </td> <td>   </td> <td>   </td> <td> 7,918 </td> <td>   </td> <td>   </td> <td>   </td> <td> 214 </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td>   </td> <td> 15,036 </td> <td>   </td> <td>   </td> <td>   </td> <td> 15,602 </td> <td>   </td> <td>   </td> <td>   </td> <td> 727 </td> <td>   </td> </tr> <tr> <td> Residential - 1 to 4 family </td> <td>   </td> <td>   </td> <td> 3,313 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,407 </td> <td>   </td> <td>   </td> <td>   </td> <td> 200 </td> <td>   </td> </tr> <tr> <td> Grand total </td> <td>   </td> <td> $ </td> <td> 34,974 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 36,383 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 1,569 </td> <td>   </td> </tr> </table> 2926000 3560000 6232000 6232000 3269000 3835000 1059000 1145000 13486000 14772000 5881000 5896000 428000 1586000 1686000 214000 11767000 11767000 727000 2254000 2262000 200000 21488000 21611000 1569000 8807000 9456000 428000 7818000 7918000 214000 15036000 15602000 727000 3313000 3407000 200000 34974000 36383000 1569000 5566000 41000 4962000 45000 1933000 30000 1934000 27000 1069000 11000 1082000 12000 8568000 82000 7978000 84000 4102000 8000 4125000 8000 8400000 37000 8402000 65000 6710000 11000 6746000 9000 2255000 18000 2256000 20000 21467000 74000 21529000 102000 9667000 49000 9087000 53000 8400000 37000 8402000 65000 8643000 41000 8680000 36000 3325000 29000 3338000 32000 30035000 156000 29507000 186000 5805000 7019000 115000 642000 5102000 6826000 3242000 3283000 4756000 1328000 10000 19030000 19098000 <table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td>   </td> <td colspan="10"> <b>Modifications</b> </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="10"> <b>As of June 30, 2012</b> </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Pre- </td> <td>   </td> <td>   </td> <td colspan="2"> Post- </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Modification </td> <td>   </td> <td>   </td> <td colspan="2"> Modification </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Outstanding </td> <td>   </td> <td>   </td> <td colspan="2"> Outstanding </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Number of </td> <td>   </td> <td>   </td> <td colspan="2"> Recorded </td> <td>   </td> <td>   </td> <td colspan="2"> Recorded </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Contracts </td> <td>   </td> <td>   </td> <td colspan="2"> Investment </td> <td>   </td> <td>   </td> <td colspan="2"> Investment </td> <td>   </td> </tr> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Commercial & industrial </td> <td>   </td> <td>   </td> <td> 6 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 3,584 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 3,584 </td> <td>   </td> </tr> <tr> <td> Real estate 1 to 4 family </td> <td>   </td> <td>   </td> <td> 3 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,481 </td> <td>   </td> <td>   </td> <td>   </td> <td> 1,481 </td> <td>   </td> </tr> <tr> <td> Commercial real estate </td> <td>   </td> <td>   </td> <td> 4 </td> <td>   </td> <td>   </td> <td>   </td> <td> 5,299 </td> <td>   </td> <td>   </td> <td>   </td> <td> 5,299 </td> <td>   </td> </tr> <tr> <td> Real estate multi family </td> <td>   </td> <td>   </td> <td> 1 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,242 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,242 </td> <td>   </td> </tr> <tr> <td> Total </td> <td>   </td> <td>   </td> <td> 14 </td> <td>   </td> <td>   </td> <td>   </td> <td> 13,606 </td> <td>   </td> <td>   </td> <td>   </td> <td> 13,606 </td> <td>   </td> </tr> </table> 6000 3584000 3584000 3000 1481000 1481000 4000 5299000 5299000 1000 3242000 3242000 14000 13606000 13606000 5000 2925000 2925000 2000 994000 994000 5000 6021000 6021000 1000 3262000 3262000 13000 13202000 13202000 5000 2987000 2987000 2000 1004000 1004000 6000 9173000 9173000 1000 3283000 3283000 14000 16447000 16447000 483000 38000 3645000 4166000 49396000 53562000 500000 5102000 5602000 239151000 244753000 25644000 25644000 3242000 3242000 36718000 39960000 69000 3775000 3844000 92042000 95886000 2037000 2037000 983000 107000 15764000 16854000 444988000 461842000 247000 712000 232000 1191000 41883000 43074000 1618000 10109000 11727000 245686000 257413000 549000 527000 1076000 27153000 28229000 36369000 36369000 71000 2629000 257000 2957000 83365000 86322000 2335000 2335000 2485000 3341000 11125000 16951000 436791000 453742000 50525000 2705000 332000 23929000 1715000 25644000 233798000 3377000 7578000 36718000 3242000 91086000 4444000 356000 2027000 10000 438083000 3377000 19694000 688000 461842000 35089000 7720000 265000 43074000 25987000 2242000 28229000 247253000 10160000 257413000 33085000 3284000 36369000 82014000 3862000 446000 86322000 2335000 2335000 425763000 27268000 711000 453742000 1628000 3592000 1055000 151000 1798000 63000 8287000 312000 54000 1000 367000 -2000 139000 1000 138000 418000 162000 -167000 -102000 89000 0 400000 1734000 3752000 834000 49000 2026000 63000 8458000 505000 477000 75000 42000 157000 1000 1257000 1229000 3275000 759000 7000 1869000 62000 7201000 1618000 4745000 1171000 671000 1592000 100000 9897000 1487000 738000 54000 109000 4000 2392000 1000 0 0 148000 4000 153000 1602000 -255000 -283000 -622000 395000 -37000 800000 1734000 3752000 834000 49000 2026000 63000 8458000 477000 75000 157000 1229000 3275000 759000 7000 1869000 62000 7201000 53562000 244753000 25644000 39960000 95886000 2037000 461842000 7082000 9471000 7238000 3242000 6443000 10000 33486000 46480000 235282000 18406000 36718000 89443000 2027000 428356000 1605000 4360000 2105000 1605000 109000 9784000 -100000 525000 50000 475000 1000 9000 10000 583000 530000 -578000 -145000 10000 400000 2289000 4365000 1536000 1460000 69000 9719000 1223000 858000 143000 176000 2400000 1066000 3507000 1393000 1284000 69000 7319000 2102000 4103000 1999000 1233000 87000 9524000 100000 525000 53000 678000 5000 18000 23000

-282000

-787000

481000

-227000

-35000

-850000

2289000 4365000 1536000 1460000 69000 9719000 1223000 858000 143000 1066000 3507000 1393000 69000 43623000 315806000 77992000 2321000 469680000 6328000 9017000 3636000 27677000 37295000 306789000 74356000 2321000 442003000 <p> The following tables present information about the Company’s assets and liabilities measured at fair value as of June 30, 2012 and December 31, 2011, and indicate the fair value techniques used by the Company to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. </p><br/><p> The following tables present the recorded amounts of assets measured at fair value on a recurring basis: </p><br/><table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="10"> Fair Value Measurements </td> <td>   </td> </tr> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="10"> at June 30, 2012, Using </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Quoted Prices </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> in Active </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Markets </td> <td>   </td> <td>   </td> <td colspan="2"> Other </td> <td>   </td> <td>   </td> <td colspan="2"> Significant </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> for Identical </td> <td>   </td> <td>   </td> <td colspan="2"> Observable </td> <td>   </td> <td>   </td> <td colspan="2"> Unobservable </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Fair Value </td> <td>   </td> <td>   </td> <td colspan="2"> Assets </td> <td>   </td> <td>   </td> <td colspan="2"> Inputs </td> <td>   </td> <td>   </td> <td colspan="2"> Inputs </td> <td>   </td> </tr> <tr> <td> Description </td> <td>   </td> <td colspan="2"> 6/30/2012 </td> <td>   </td> <td>   </td> <td colspan="2"> (Level 1) </td> <td>   </td> <td>   </td> <td colspan="2"> (Level 2) </td> <td>   </td> <td>   </td> <td colspan="2"> (Level 3) </td> <td>   </td> </tr> <tr> <td> U. S. Treasury securities </td> <td>   </td> <td> $ </td> <td> 8,384 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 8,384 </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> </tr> <tr> <td> Obligations of U.S. </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Government agencies </td> <td>   </td> <td>   </td> <td> 64,097 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 64,097 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td> Mortgage-backed securities </td> <td>   </td> <td>   </td> <td> 37,422 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 37,422 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td> Obligations of states and political subdivisions </td> <td>   </td> <td>   </td> <td> 77,136 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 77,136 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td> Corporate debt </td> <td>   </td> <td>   </td> <td> 16,509 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 16,509 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td> Total assets measured at fair value </td> <td>   </td> <td> $ </td> <td> 203,548 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 8,384 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 195,164 </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> </tr> </table><br/><table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="10"> Fair Value Measurements </td> <td>   </td> </tr> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="10"> at December 31, 2011, Using </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Quoted Prices </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> in Active </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Markets </td> <td>   </td> <td>   </td> <td colspan="2"> Other </td> <td>   </td> <td>   </td> <td colspan="2"> Significant </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> for Identical </td> <td>   </td> <td>   </td> <td colspan="2"> Observable </td> <td>   </td> <td>   </td> <td colspan="2"> Unobservable </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Fair Value </td> <td>   </td> <td>   </td> <td colspan="2"> Assets </td> <td>   </td> <td>   </td> <td colspan="2"> Inputs </td> <td>   </td> <td>   </td> <td colspan="2"> Inputs </td> <td>   </td> </tr> <tr> <td> Description </td> <td>   </td> <td colspan="2"> 12/31/2011 </td> <td>   </td> <td>   </td> <td colspan="2"> (Level 1) </td> <td>   </td> <td>   </td> <td colspan="2"> (Level 2) </td> <td>   </td> <td>   </td> <td colspan="2"> (Level 3) </td> <td>   </td> </tr> <tr> <td> U. S. Treasury securities </td> <td>   </td> <td> $ </td> <td> 12,634 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 12,634 </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> </tr> <tr> <td> Obligations of U.S. </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Government agencies </td> <td>   </td> <td>   </td> <td> 54,102 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 54,102 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td> Mortgage-backed securities </td> <td>   </td> <td>   </td> <td> 33,435 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 33,435 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td> Obligations of states and political subdivisions </td> <td>   </td> <td>   </td> <td> 77,251 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 77,251 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td> Corporate debt </td> <td>   </td> <td>   </td> <td> 10,242 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 10,242 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> </tr> <tr> <td> Total assets measured at fair value </td> <td>   </td> <td> $ </td> <td> 187,664 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 12,634 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 175,030 </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> </tr> </table><br/><p> The following tables present the recorded amount of assets measured at fair value on a non-recurring basis: </p><br/><table cellpadding="0" cellspacing="0"> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="10"> Fair Value Measurements<br /> at June 30, 2012, Using </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Quoted Prices </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Losses </td> <td>   </td> <td>   </td> <td colspan="2"> Losses </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> in Active </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> for three </td> <td>   </td> <td>   </td> <td colspan="2"> for three </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Markets </td> <td>   </td> <td colspan="2"> Other </td> <td>   </td> <td>   </td> <td colspan="2"> Significant </td> <td>   </td> <td>   </td> <td colspan="2"> months </td> <td>   </td> <td>   </td> <td colspan="2"> months </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> for Identical </td> <td>   </td> <td colspan="2"> Observable </td> <td>   </td> <td>   </td> <td colspan="2"> Unobservable </td> <td>   </td> <td>   </td> <td colspan="2"> ended </td> <td>   </td> <td>   </td> <td colspan="2"> ended </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Fair Value </td> <td>   </td> <td>   </td> <td colspan="2"> Assets </td> <td>   </td> <td colspan="2"> Inputs </td> <td>   </td> <td>   </td> <td colspan="2"> Inputs </td> <td>   </td> <td>   </td> <td colspan="2"> June 30, </td> <td>   </td> <td>   </td> <td colspan="2"> June 30, </td> <td>   </td> </tr> <tr> <td> Description </td> <td>   </td> <td colspan="2"> 6/30/2012 </td> <td>   </td> <td>   </td> <td colspan="2"> (Level 1) </td> <td>   </td> <td colspan="2"> (Level 2) </td> <td>   </td> <td>   </td> <td colspan="2"> (Level 3) </td> <td>   </td> <td>   </td> <td colspan="2"> 2012 </td> <td>   </td> <td>   </td> <td colspan="2"> 2011 </td> <td>   </td> </tr> <tr> <td> Impaired loans </td> <td>   </td> <td> $ </td> <td> 12,384 </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> <td>   </td> <td> $ </td> <td> 12,384 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 225 </td> <td>   </td> <td>   </td> <td>   </td> <td> 894 </td> <td>   </td> </tr> <tr> <td> Total impaired assets measured at fair value </td> <td>   </td> <td> $ </td> <td> 12,384 </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> <td>   </td> <td> $ </td> <td> 12,384 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 225 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 894 </td> <td>   </td> </tr> </table><br/><table cellpadding="0" cellspacing="0"> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="10"> Fair Value Measurements </td> <td>   </td> </tr> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="10"> at December 31, 2011, Using </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Quoted Prices in </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> Active Markets </td> <td>   </td> <td>   </td> <td colspan="2"> Other </td> <td>   </td> <td>   </td> <td colspan="2"> Significant </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2">   </td> <td>   </td> <td>   </td> <td colspan="2"> for Identical </td> <td>   </td> <td>   </td> <td colspan="2"> Observable </td> <td>   </td> <td>   </td> <td colspan="2"> Unobservable </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> Fair Value </td> <td>   </td> <td>   </td> <td colspan="2"> Assets </td> <td>   </td> <td>   </td> <td colspan="2"> Inputs </td> <td>   </td> <td>   </td> <td colspan="2"> Inputs </td> <td>   </td> </tr> <tr> <td> Description </td> <td>   </td> <td colspan="2"> 12/31/11 </td> <td>   </td> <td>   </td> <td colspan="2"> (Level 1) </td> <td>   </td> <td>   </td> <td colspan="2"> (Level 2) </td> <td>   </td> <td>   </td> <td colspan="2"> (Level 3) </td> <td>   </td> </tr> <tr> <td> Impaired loans </td> <td>   </td> <td> $ </td> <td> 8,383 </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> <td>   </td> <td> $ </td> <td> 8,383 </td> <td>   </td> </tr> <tr> <td> Other real estate owned </td> <td>   </td> <td>   </td> <td> 2,747 </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 2,747 </td> <td>   </td> </tr> <tr> <td> Total impaired assets measured at fair value </td> <td>   </td> <td> $ </td> <td> 11,130 </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> <td>   </td> <td> $ </td> <td> — </td> <td>   </td> <td>   </td> <td> $ </td> <td> 11,130 </td> <td>   </td> </tr> </table><br/><p> The Bank does not record loans at fair value. However, from time to time, if a loan is considered impaired, a specific allocation within the allowance for loan losses may be required. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, liquidation value and cash flows. Those impaired loans not requiring an allowance represent loans for which the value of the expected repayments or collateral exceed the recorded investments in such loans. Impaired loans where an allowance is established based on the fair value of collateral or when the impaired loan has been written down to fair value require classification in the fair value hierarchy. If the fair value of the collateral is based on an observable market price or a current appraised value, the Bank records the impaired loans as nonrecurring Level 3. When an appraised value is not available, or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Bank also records the impaired loans as nonrecurring Level 3. </p><br/><p> Other real estate owned is carried at the lower of historical cost or fair market value. An appraisal (a Level 3 valuation) is obtained at the time the Company acquires property through the foreclosure process. Any loan balance outstanding that exceeds the appraised value of the property is charged off against the allowance for loan loss at the time the property is acquired. Subsequent to acquisition, the Bank updates the property’s appraised value on at least an annual basis. If the value of the property has declined during the year, a loss due to valuation impairment charge is recorded along with a corresponding reduction in the book carrying value of the property. </p><br/><p> <u>Fair Values of Financial Instruments.</u> </p><br/><p> The following methods and assumptions were used by the Company in estimating the fair value disclosures for financial instruments: </p><br/><p> <i><u>Cash and Cash Equivalents.</u></i> </p><br/><p> The carrying amounts reported in the balance sheet for cash and short-term instruments are a reasonable estimate of fair value, which will approximate their historical cost. </p><br/><p> <i><u>Securities Available-for-Sale.</u></i> </p><br/><p> Fair values for investment securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. </p><br/><p> <i><u>Loans Receivable.</u></i> </p><br/><p> For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values and credit risk factors. For fixed rate loans, fair values are based on discounted cash flows, credit risk factors, and liquidity factors. </p><br/><p> <i><u>Deposit liabilities.</u></i> </p><br/><p> The fair values disclosed for demand deposits (e.g., interest and non-interest checking, savings, and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). The fair values for fixed-rate certificates of deposit are based on discounted cash flows. </p><br/><p> <i><u>Federal Home Loan Bank Advances.</u></i> </p><br/><p> The fair values of Federal Home Loan Bank Advances are based on discounted cash flows. The discount rate is equal to the market rate currently offered by similar products. </p><br/><p> <i><u>Interest Receivable and Payable</u></i> </p><br/><p> The interesrt receivable and payable balances approximate their fair value due to the short-term nature of their settlement dates. </p><br/><p> <i><u>Undisbursed loan commitments, lines of credit, Mastercard line and standby letters of credit.</u></i> </p><br/><p> The fair value of these off-balance sheet items are based on discounted cash flows of expected fundings. </p><br/><p> The Bank has excluded non-financial assets and non-financial liabilities, such as Bank premises and equipment, deferred taxes and other liabilities. </p><br/><p> The following table provides summary information on the estimated fair value of financial instruments at June 30, 2012: </p><br/><table cellpadding="0" cellspacing="0"> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2"> Carrying </td> <td>   </td> <td>   </td> <td colspan="2"> Fair </td> <td>   </td> <td>   </td> <td colspan="10"> Fair value measurements </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> amount </td> <td>   </td> <td>   </td> <td colspan="2"> value </td> <td>   </td> <td>   </td> <td colspan="2"> Level 1 </td> <td>   </td> <td>   </td> <td colspan="2"> Level 2 </td> <td>   </td> <td>   </td> <td colspan="2"> Level 3 </td> <td>   </td> </tr> <tr> <td> Financial assets: </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Cash and cash equivalents </td> <td>   </td> <td> $ </td> <td> 44,856 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 44,856 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 44,856 </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Securities available for sale </td> <td>   </td> <td>   </td> <td> 203,548 </td> <td>   </td> <td>   </td> <td>   </td> <td> 203,548 </td> <td>   </td> <td>   </td> <td>   </td> <td> 8,384 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 195,164 </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Loans </td> <td>   </td> <td>   </td> <td> 461,842 </td> <td>   </td> <td>   </td> <td>   </td> <td> 467,931 </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td> 455,547 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 12,384 </td> <td>   </td> </tr> <tr> <td> Accrued interest receivable </td> <td>   </td> <td>   </td> <td> 3,621 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,621 </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,621 </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Financial liabilities: </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Accrued interest payable </td> <td>   </td> <td>   </td> <td> 297 </td> <td>   </td> <td>   </td> <td>   </td> <td> 297 </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td> 297 </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Deposits </td> <td>   </td> <td>   </td> <td> 651,843 </td> <td>   </td> <td>   </td> <td>   </td> <td> 652,293 </td> <td>   </td> <td>   </td> <td>   </td> <td> 546,713 </td> <td>   </td> <td>   </td> <td>   </td> <td> 105,580 </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Off-balance-sheet liabilities: </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit </td> <td>   </td> <td>   </td> <td> — </td> <td>   </td> <td>   </td> <td>   </td> <td> 847 </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td colspan="2"> 847 </td> <td>   </td> </tr> </table><br/><p> The carrying amount of loans include $19,030,000 of nonaccrual loans (loans that are not accruing interest) as of June 30, 2012. The fair value of nonaccrual loans is based on the collateral values that secure the loans or the cash flows expected to be received. </p><br/><p> The following table provides summary information on the estimated fair value of financial instruments at December 31, 2011: </p><br/><table cellpadding="0" cellspacing="0"> <tr> <td> (Dollar amounts in thousands) </td> <td>   </td> <td colspan="2"> Carrying </td> <td>   </td> <td>   </td> <td colspan="2"> Fair </td> <td>   </td> <td>   </td> <td colspan="10"> Fair value measurements </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td colspan="2"> amount </td> <td>   </td> <td>   </td> <td colspan="2"> value </td> <td>   </td> <td>   </td> <td colspan="2"> Level 1 </td> <td>   </td> <td>   </td> <td colspan="2"> Level 2 </td> <td>   </td> <td>   </td> <td colspan="2"> Level 3 </td> <td>   </td> </tr> <tr> <td> Financial assets: </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Cash and cash equivalents </td> <td>   </td> <td> $ </td> <td> 38,474 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 38,474 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 38,474 </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Securities available for sale </td> <td>   </td> <td>   </td> <td> 187,664 </td> <td>   </td> <td>   </td> <td>   </td> <td> 187,664 </td> <td>   </td> <td>   </td> <td>   </td> <td> 12,634 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 175,030 </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Loans, net </td> <td>   </td> <td>   </td> <td> 453,742 </td> <td>   </td> <td>   </td> <td>   </td> <td> 454,342 </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td> 445,959 </td> <td>   </td> <td>   </td> <td> $ </td> <td> 8,383 </td> <td>   </td> </tr> <tr> <td> Accrued interest receivable </td> <td>   </td> <td>   </td> <td> 3,614 </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,614 </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td> 3,614 </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr>