0000275119 us-gaap:CommonStockMember 2012-01-01 2012-03-31 0000275119 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2012-01-01 2012-03-31 0000275119 us-gaap:RetainedEarningsMember 2012-01-01 2012-03-31 0000275119 us-gaap:TreasuryStockMember 2012-03-31 0000275119 us-gaap:RetainedEarningsMember 2012-03-31 0000275119 us-gaap:CommonStockMember 2012-03-31 0000275119 us-gaap:AdditionalPaidInCapitalMember 2012-03-31 0000275119 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2012-03-31 0000275119 us-gaap:TreasuryStockMember 2011-12-31 0000275119 us-gaap:RetainedEarningsMember 2011-12-31 0000275119 us-gaap:CommonStockMember 2011-12-31 0000275119 us-gaap:AdditionalPaidInCapitalMember 2011-12-31 0000275119 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2011-12-31 0000275119 2011-03-31 0000275119 2010-12-31 0000275119 2012-03-31 0000275119 2011-12-31 0000275119 2012-05-07 0000275119 2011-01-01 2011-03-31 0000275119 us-gaap:AdditionalPaidInCapitalMember 2012-01-01 2012-03-31 0000275119 2012-01-01 2012-03-31 iso4217:USD xbrli:shares xbrli:shares iso4217:USD 2000 2000 168000 210000 <div> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td valign="top"> 12.</td> <td valign="top"> Mortgage Servicing Rights</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> The Company has obligations to service residential first mortgage loans and commercial loans that have been sold in the secondary market with servicing retained. Mortgage servicing rights ("MSRs") are recorded at fair value when loans are sold in the secondary market with servicing retained. On a quarterly basis MSRs are valued based on available market information.</td></tr></table> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="top" width="5%">  </td> <td valign="top" width="95%">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> Changes in the carrying value of MSRs are as follows (dollar amounts in thousands):</td></tr></table> MORTGAGE SERVICING RIGHTS <table border="0" cellspacing="0" cellpadding="0" width="85%" align="center"> <tr style="font-size: 1px;"><td valign="bottom" width="58%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="9%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="9%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="5"> For the three months ended March 31,</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> 2012</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> 2011</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Balance at beginning of period</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 634</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 746</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Additions from loans sold with servicing retained</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 45</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 57</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Changes in valuation</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (36</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 18</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Loan payments and payoffs</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 54</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> (51</td> <td valign="bottom"> )</td></tr> <tr><td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom"> Fair value of MSRs at the end of period</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 697</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 770</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td></tr></table> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="top" width="5%">  </td> <td valign="top" width="95%">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> Unpaid principal balance of loans serviced for others was $85.8 million and $83.6 million at March 31, 2012 and March 31, 2011, respectively.</td></tr></table> </div> 33000 -18000 -30000 18000 83000 39000 -8000 -2000 165000 183000 12924000 16096000 <div> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td valign="top"> 13.</td> <td valign="top"> Promissory Notes</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> During 2009 and 2010, the Company issued 10% Convertible Notes due June 30, 2017 (the "Convertible Notes") totaling $9.45 million. The Convertible Notes were offered and sold in reliance on the exemption from registration under Section 4(2) of the Securities Act of 1933 and Rule 506 promulgated there under.</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> The Convertible Notes accrue interest at a fixed rate of 10% per annum upon issuance and until maturity or earlier conversion or redemption. Interest is payable quarterly, in arrears, on January 1, April 1, July 1, and October 1 of each year. The Convertible Notes are convertible into shares of common stock at a conversion ratio of one share of common stock for each $5.00 in aggregate principal amount held on the record date of the conversion, subject to certain adjustments as described in the Convertible Notes. Prior to October 1, 2014, each holder of the Convertible Notes may convert up to 100% (at the discretion of the holder) of the original principal amount into shares of common stock at the conversion ratio. On October 1, 2014, one-half of the original principal amounts are mandatorily convertible into common stock at the conversion ratio if voluntary conversion has not occurred. The principal amount, along with accrued but unpaid interest, of any Convertible Note that has not been converted will be payable at maturity on June 30, 2017. The Company is not obligated to register the common stock issued on the conversion of the Convertible Notes.</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> During 2009 and 2010 the Company incurred debt issuance costs of $0.2 million. These costs were capitalized and are being amortized to interest expense using the effective interest method over the initial conversion term, which ends October 1, 2014.</td></tr></table> </div> 7000 7000 682000 458000 1626000 <div> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td valign="top"> 15.</td> <td valign="top"> Supervisory Agreement</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> Effective December 29, 2010, the Company and the Bank entered into a Written Agreement (the "Written Agreement") with the Federal Reserve Bank and the Wisconsin Department of Financial Institutions ("WDFI"). Under the terms of the Written Agreement, the Bank has agreed to develop and submit for approval within the time periods specified therein written plans to: (i) further reduce the Bank's concentration of commercial real estate loans; (ii) improve the Bank's position with respect to loans, relationships, or other assets in excess of $0.5 million which are now or in the future become past due more than 90 days, are on the Bank's problem loan list, or are adversely classified in any report of examination of the Bank; (iii) review and revise, as appropriate, the Bank's current policy for determining, documenting and recording an adequate allowance for loan losses and maintain sound processes for compliance with the same; and (iv) improve the Bank's earnings and overall condition. </td></tr></table> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="top" width="5%">  </td> <td valign="top" width="95%">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> In addition, the Bank has agreed that it will: (i) not extend, renew or restructure any credit that has been criticized by the Federal Reserve Bank or the WDFI absent prior board of directors' approval in accordance with the restrictions in the Written Agreement; and (ii) eliminate all assets or portions of assets classified as "loss" and thereafter charge off all assets classified as "loss" in a federal or state report of examination, unless otherwise approved by the Federal Reserve Bank. In addition, the Bank has agreed that it will: (a) not take any other form of payment representing a reduction in the Bank's capital or make any distributions of interest, principal or other sums on subordinated debentures or trust preferred securities absent prior regulatory approval; (b) refrain from incurring or guaranteeing any debt without the prior written approval of the Federal Reserve Bank; and (c) refrain from purchasing or redeeming any shares of our stock without the prior written consent of the Federal Reserve Bank. </td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> Under the terms of the Written Agreement, both the Company and the Bank have agreed to: (i) submit for approval plans to maintain sufficient capital on a consolidated basis, and the Bank, on a stand-alone basis; (ii) comply with applicable notice provisions with respect to the appointment of new directors and senior executive officers and legal and regulatory limitations on indemnification payments and severance payments; and (iii) refrain from declaring or paying dividends absent prior regulatory approval. Failure to comply with the provisions of the Written Agreement could result in the imposition of additional restrictions and/or sanctions by the Federal Reserve Bank and WDFI and could have a material adverse effect on the consolidated financial condition and results of operations of the Company.</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> As of the date of this filing, the Company and the Bank have complied with all terms of the Written Agreement.</td></tr></table> </div> 12000 12000 <div> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td valign="top"> 14.</td> <td valign="top"> Troubled Debt Restructuring</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> A troubled debt restructuring ("TDR") includes a loan modification where a borrower is experiencing financial difficulty and the Bank grants a concession to that borrower that would not otherwise be considered except for the borrower's financial difficulties. A TDR may be either accrual or nonaccrual status based upon the performance of the borrower and management's assessment of collectability. If a TDR is placed on nonaccrual status, it remains there until a sufficient period of performance under the restructured terms has occurred at which time it is returned to accrual status, generally six months.</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> (Dollar amounts in thousands)</td></tr></table> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="bottom" width="27%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="9%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="7%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="5%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="7%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="7%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="7%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Construction Loans</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Real Estate- Mortgage</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Real Estate- Commercial</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Commercial</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Consumer</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Municipal</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Total</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Accruing</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td valign="bottom"> January 1, 2012</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 1,432</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 20,203</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 374</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 22,009</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Principal payments</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (2</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (109</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (1</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (112</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td valign="bottom"> Charge-offs</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Advances</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 43</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 43</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> New restructured</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 175</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 175</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Transferred out of TDRs</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (39</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (7,592</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (7,631</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td style="padding-bottom: 1px;" valign="bottom"> Transfers to nonaccrual</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> (8,015</td> <td style="padding-bottom: 1px;" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> (8,015</td> <td style="padding-bottom: 1px;" valign="bottom"> )</td></tr> <tr><td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom"> March 31, 2012</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 1,391</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 4,705</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 373</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 6,469</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td valign="bottom"> Nonaccrual</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> January 1, 2012</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 4,325</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 16</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 4,341</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td valign="bottom"> Principal payments</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> (1</td> <td valign="bottom"> )</td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> (1</td> <td valign="bottom"> )</td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Charge-offs</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (625</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (625</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td valign="bottom"> Advances</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 188</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 188</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> New Restructured</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Transfers to foreclosed properties</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> (3,760</td> <td valign="bottom"> )</td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> (3,760</td> <td valign="bottom"> )</td></tr> <tr><td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> Transfers from accruing</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 8,015</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 8,015</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td style="padding-bottom: 3px;" valign="bottom"> March 31, 2012</td> <td valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> —</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> —</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 8,143</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 15</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> —</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> —</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 8,158</td> <td style="padding-bottom: 3px;" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Totals</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> January 1, 2012</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 1,432</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 24,528</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 390</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 26,350</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Principal payments</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (2</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (109</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (2</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (113</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td valign="bottom"> Charge-offs</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> (625</td> <td valign="bottom"> )</td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> (625</td> <td valign="bottom"> )</td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Advances</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 231</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 231</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> New restructured</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 175</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 175</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Transfers out of TDRs</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (39</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (7,592</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (7,631</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td style="padding-bottom: 1px;" valign="bottom"> Transfers to foreclosed properties</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> (3,760</td> <td style="padding-bottom: 1px;" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> (3,760</td> <td style="padding-bottom: 1px;" valign="bottom"> )</td></tr> <tr><td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom"> March 31, 2012</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 1,391</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 12,848</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 388</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 14,627</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td></tr></table> During the quarter ended March 31, 2012, the entire $8.0 million of restructured loans transferred to nonaccrual status were loans that had been restructured with principal charge-offs (A/B Note Structure). Of the $7.6 million of loans transferred out of the restructured category, $5.0 million were loans that had been modified with payment schedule changes and not due to interest rate concessions. A majority of the remaining amount ($2.5 million) were loans that had been restructured with principal charge-offs (A/B Note Structure). A summary of troubled debt restructurings as of March 31, 2012 and December 31, 2011 is as follows (dollar amounts in thousands): <table border="0" cellspacing="0" cellpadding="0" width="90%"> <tr style="font-size: 1px;"><td valign="bottom" width="46%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="9%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="9%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="9%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="9%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="5"> March 31, 2012</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="5"> December 31, 2011</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Number of Modifications</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Recorded Investment</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Number of Modifications</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Recorded Investment</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Construction</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Real estate – mortgage</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 2</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 1,391</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 3</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 1,432</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Real estate – commercial</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 14</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 12,848</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 24</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 24,528</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Commercial</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 2</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 388</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 2</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 390</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Consumer</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" valign="bottom"> Municipal</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td></tr> <tr><td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom"> Total</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 18</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 14,627</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 29</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 26,350</td></tr></table> </div> <div> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td valign="top"> 2.</td> <td valign="top"> Use of Estimates</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> To prepare consolidated financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the consolidated financial statements and the disclosures provided, and actual results could differ. The allowance for loan losses, provision for letter of credit impairment loss, value of foreclosed properties, other than temporary impairment of securities, mortgage servicing rights, income tax expense, and fair values of financial instruments are particularly subject to change.</td></tr></table> </div> false --12-31 Q1 2012 2012-03-31 10-Q 0000275119 7926458 Smaller Reporting Company BAYLAKE CORP <div> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td valign="top"> 6.</td> <td valign="top"> Investments</td></tr></table> INVESTMENT SECURITY ANALYSIS (Dollar amounts in thousands) The fair value of securities available for sale and the related unrealized gains and losses as of March 31, 2012 and December 31, 2011 are as follows: <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="bottom" width="50%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="12%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="12%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="12%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="8"> March 31, 2012</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Fair Value</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Gross Unrealized Gains</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Gross Unrealized Losses</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> U.S. government-sponsored agency securities</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 13,605</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 23</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> (46</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td valign="bottom"> Obligations of states and political subdivisions</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 57,637</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 3,860</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> (12</td> <td valign="bottom"> )</td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Mortgage-backed securities</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 188,698</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 4,079</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (875</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td valign="bottom"> Asset-backed securities</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 4,766</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 119</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> (436</td> <td valign="bottom"> )</td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Private placement and corporate bonds</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 12,713</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 639</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Other securities</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 1,655</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom"> Totals</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 279,074</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 8,720</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> (1,369</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom"> )</td></tr></table> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="bottom" width="50%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="12%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="12%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="12%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="8"> December 31, 2011</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Fair Value</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Gross Unrealized Gains</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Gross Unrealized Losses</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> U.S. government-sponsored agency securities</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 14,138</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 49</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Obligations of states and political subdivisions</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 57,766</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 4,128</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Mortgage-backed securities</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 193,592</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 4,233</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (1,984</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td valign="bottom"> Asset-backed securities</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 4,969</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 132</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> (451</td> <td valign="bottom"> )</td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Private placement and corporate bonds</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 12,212</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 159</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (17</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td valign="bottom"> Other securities</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 1,654</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom"> Totals</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 284,331</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 8,701</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> (2,452</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom"> )</td></tr></table> At March 31, 2012 and December 31, 2011, the mortgage-backed securities portfolio was $188.7 million, (67.6%) and $193.6 million, (68.1%), respectively, of the investment portfolios. Approximately 9.6%, or $18.2 million, of the mortgage-backed securities outstanding at March 31, 2012 were issued and guaranteed by the Government National Mortgage Association ("GNMA"), the Small Business Administration ("SBA") or the United States Department of Veterans Affairs ("VA"): agencies of the United States government. An additional 67.4%, or $127.1 million, of the mortgage-backed securities outstanding at March 31, 2012 were issued by either the Federal National Mortgage Association ("FNMA") or the Federal Home Loan Mortgage Corporation ("FHLMC"); United States government-sponsored-agencies. Non-agency mortgage-backed securities present a level of credit risk that does not exist currently with United States government agency-backed securities, but only comprised approximately 22.9%, or $43.3 million, of the outstanding mortgage-backed securities at March 31, 2012. Management evaluates these non-agency mortgage-backed securities at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Securities with unrealized losses at March 31, 2012 and December 31, 2011, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (dollar amounts in thousands): <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="bottom" width="28%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="7%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="6%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="7%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="17"> March 31, 2012</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="5"> Less than 12 Months</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="5"> 12 Months or More</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="5"> Total</td> <td valign="bottom">  </td></tr> <tr><td style="border-bottom: black 1px solid;" valign="bottom"> Description of Securities</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Fair Value</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Unrealized Loss</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Fair Value</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Unrealized Loss</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Fair Value</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Unrealized Loss</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> U.S. government-sponsored agency securities</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 3,532</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> (46</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 3,532</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> (46</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td valign="bottom"> Obligations of states and political subdivisions</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 983</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> (12</td> <td valign="bottom"> )</td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 983</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> (12</td> <td valign="bottom"> )</td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Mortgage-backed securities</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 46,959</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (450</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 4,034</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (425</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 50,993</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (875</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td valign="bottom"> Asset-backed securities</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 3,553</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> (436</td> <td valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 3,553</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> (436</td> <td valign="bottom"> )</td></tr> <tr><td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom"> Total temporarily impaired</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 51,474</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> (508</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 7,587</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> (861</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 59,061</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> (1,369</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom"> )</td></tr></table> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="bottom" width="28%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="7%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="6%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="7%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="17"> December 31, 2011</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="5"> Less than 12 Months</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="5"> 12 Months or More</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="5"> Total</td> <td valign="bottom">  </td></tr> <tr><td style="border-bottom: black 1px solid;" valign="bottom"> Description of Securities</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Fair Value</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Unrealized Loss</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Fair Value</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Unrealized Loss</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Fair Value</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Unrealized Loss</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Mortgage-backed securities</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 46,955</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> (964</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 9,363</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> (1,020</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 56,318</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> (1,984</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td valign="bottom"> Asset-backed securities</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 3,645</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> (451</td> <td valign="bottom"> )</td> <td valign="bottom">  </td> <td valign="bottom"> 3,645</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> (451</td> <td valign="bottom"> )</td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Private placement and corporate bonds</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 3,504</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (17</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 3,504</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (17</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td style="padding-bottom: 3px;" valign="bottom"> Total temporarily impaired</td> <td valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 50,459</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> (981</td> <td style="padding-bottom: 3px;" valign="bottom"> )</td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 13,008</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> (1,471</td> <td style="padding-bottom: 3px;" valign="bottom"> )</td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 63,467</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> (2,452</td> <td style="padding-bottom: 3px;" valign="bottom"> )</td></tr></table> At March 31, 2012, the mortgage-backed securities category with continuous unrealized losses for twelve months or more comprises one security. The asset-backed securities category with continuous unrealized losses for twelve months or more comprises two securities. At December 31, 2011, the mortgage-backed securities category with continuous unrealized losses for twelve months or more comprises three securities. The asset-backed securities category with continuous unrealized losses for twelve months or more comprises two securities. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. As part of such monitoring, the credit quality of individual securities and their issuers is assessed. Adjustments to market value that are considered temporary are recorded as a separate component of other comprehensive income, net of tax. If an impairment of a security is identified as other-than-temporary based on information available, such as the decline in the creditworthiness of the issuer, external market ratings or the anticipated or realized elimination of associated dividends, such impairments are further analyzed to determine if a credit loss exists. If there is a credit loss, it will be recorded in the consolidated statement of operations. Unrealized losses other than credit losses will continue to be recognized in other comprehensive income; net of tax. Unrealized losses reflected in the preceding tables have not been included in the results of operations because the unrealized loss was not deemed other-than-temporary. Management does not have the intent to sell the securities and has determined that it is not more likely than not that the Company will be required to sell the debt securities before their anticipated recovery and therefore, there is no other-than-temporary impairment. The losses on these securities are expected to dissipate as they approach their maturity dates and/or if interest rates decline. </div>

9225000

9196000

3781000

4448000

12066000

12028000

27000

55000000

<div> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="top" width="5%">  </td> <td valign="top" width="95%">  </td></tr> <tr><td valign="top"> 8.</td> <td valign="top"> Allowance For Loan Losses ("ALL")</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> The ALL represents management's estimate of probable and inherent credit losses in the loan portfolio. Estimating the amount of the ALL requires the exercise of significant judgment and the use of estimates related to the amount and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans based on historical loss experience, and consideration of other qualitative factors such as current economic trends and conditions, all of which may be susceptible to significant change. The loan portfolio also represents the largest asset on the consolidated balance sheet. Loan losses are charged off against the ALL, while recoveries of amounts previously charged off are credited to the ALL. A provision for loan losses ("PFLL") is charged to operations based on management's periodic evaluation of the factors previously mentioned, as well as other pertinent factors. </td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> The ALL consists of specific reserves on certain impaired loans and general reserves for non-impaired loans. Specific reserves reflect estimated losses based on regular analyses of all impaired non-homogenous loans. These analyses involve a high degree of judgment in estimating the amount of loss associated with specific loans, including estimating the amount and timing of future cash flows and collateral values. The general reserve is based on the Bank's historical loss experience which is updated quarterly. The general reserve portion of the ALL also includes consideration of certain qualitative factors such as 1) changes in the nature, volume and terms of loans, 2) changes in lending personnel, 3) changes in the quality of the loan review function, 4) changes in nature and volume of past-due, nonaccrual and/or classified loans, 5) changes in concentration of credit risk, 6) changes in economic and industry conditions, 7) changes in legal and regulatory requirements, 8) unemployment and inflation statistics, and 9) changes in underlying collateral values.</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> There are many factors affecting the ALL; some are quantitative while others require qualitative judgment. The process for determining the ALL (which management believes adequately considers potential factors which might possibly result in credit losses) includes subjective elements and, therefore, may be susceptible to significant change. To the extent actual outcomes differ from management estimates, additional PFLL could be required that could adversely affect the earnings or financial position in future periods. Allocations of the ALL may be made for specific loans but the entire ALL is available for any loan that, in management's judgment, should be charged-off or for which an actual loss is realized. As an integral part of their examination process, various regulatory agencies review the ALL as well. Such agencies may require that changes in the ALL be recognized when such regulators' credit evaluations differ from those of management based on information available to the regulators at the time of their examinations.</td></tr></table> Information regarding impaired loans is as follows (dollar amounts in thousands): IMPAIRED LOANS AND ALLOCATED ALLOWANCE <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="bottom" width="24%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="6%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="6%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="6%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="6%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="6%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="6%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="6%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="9%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom"> March 31, 2012</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Construction Loans</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Real Estate- Mortgage</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Real Estate- Commercial</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Commercial</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Consumer</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Municipal</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Not Specifically Allocated</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Totals</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> With an allowance recorded:</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Recorded investment</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 2,440</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 1,602</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 6,005</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 56</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 1</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 10,104</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Unpaid principal balance</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 2,750</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 1,796</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 7,794</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 174</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 2</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 12,516</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Related allowance</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 310</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 194</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 1,789</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 118</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 1</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 2,412</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> With no related allowance recorded:</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Recorded investment</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 1,272</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 2,312</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 12,334</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 468</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 27</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 16,413</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Unpaid principal balance</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 1,272</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 2,312</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 12,334</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 468</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 27</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 16,413</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Related allowance</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Total:</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Recorded investment</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 3,712</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 3,914</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 18,339</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 524</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 28</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 26,517</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Unpaid principal balance</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 4,022</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 4,108</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 20,128</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 642</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 29</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 28,929</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Related allowance</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 310</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 194</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 1,789</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 118</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 1</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 2,412</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Average recorded investment during quarter</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 3,780</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 4,068</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 18,075</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 664</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 48</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 26,635</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td valign="bottom"> Interest income recognized while impaired</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 20</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 110</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 6</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 136</td> <td valign="bottom">  </td></tr></table> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="bottom" width="24%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="6%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="6%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="6%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="6%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="6%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="6%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="6%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="9%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom"> December 31, 2011</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Construction Loans</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Real Estate- Mortgage</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Real Estate- Commercial</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Commercial</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Consumer</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Municipal</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Not Specifically Allocated</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Totals</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> With an allowance recorded:</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Recorded investment</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 2,667</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 904</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 1,103</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 11</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 4,685</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Unpaid principal balance</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 2,852</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 1,096</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 1,702</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 54</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 16</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 5,720</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Related allowance</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 185</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 192</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 599</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 54</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 5</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 1,035</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> With no related allowance recorded:</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Recorded investment</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 2,093</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 3,011</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 30,156</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 612</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 35,872</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Unpaid principal balance</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 2,093</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 3,011</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 30,156</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 612</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 35,872</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Related allowance</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Total:</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Recorded investment</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 4,760</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 3,915</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 31,259</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 612</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 11</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 40,557</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Unpaid principal balance</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 4,945</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 4,107</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 31,858</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 666</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 16</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 41,592</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Related allowance</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 185</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 192</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 599</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 54</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 5</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 1,035</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Average recorded investment during quarter</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 4,942</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 4,327</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 30,080</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 529</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 15</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 39,893</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td valign="bottom"> Interest income recognized while impaired</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 277</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 311</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 1,512</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 66</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 21</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 2,187</td> <td valign="bottom">  </td></tr></table> Management regularly monitors impaired loan relationships. In the event facts and circumstances change, an additional PFLL may be necessary. Nonperforming loans are as follows (dollar amounts in thousands): NONPERFORMING LOANS <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="bottom" width="33%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="9%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="9%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="9%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="9%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="9%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> March 31, 2012</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> December 31, 2011</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> September 30, 2011</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> June 30, 2011</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> March 31, 2011</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Nonaccrual loans</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 14,301</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 15,242</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 19,026</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 16,759</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 17,027</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" valign="bottom"> Loans restructured in a troubled debt restructuring, nonaccrual</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 8,158</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 4,341</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 5,287</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 5,288</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 165</td> <td style="padding-bottom: 1px;" valign="bottom">  </td></tr> <tr><td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom"> Total nonperforming loans ("NPLs")</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 22,459</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 19,583</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 24,313</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 22,047</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 17,192</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td valign="bottom"> Restructured loans, accruing</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 6,469</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 22,009</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 20,461</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 18,559</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 22,777</td> <td valign="bottom">  </td></tr></table> During the quarter ended March 31, 2012, $8.0 million of accruing restructured loans were transferred to nonaccrual and $7.6 million of restructured loans were in compliance with their modified terms and were transferred out of the restructured loan category. </div>

9000

1086929000

1067705000

284331000

279074000

23064000

23157000

130000

93000

<div> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td valign="top"> 1.</td> <td valign="top"> The consolidated financial statements of Baylake Corp. (the "Company") include the accounts of the Company, its wholly owned subsidiary Baylake Bank (the "Bank"), and the Bank's wholly owned subsidiaries: Baylake Investments, Inc., and Baylake Insurance Agency, Inc. The accompanying interim consolidated financial statements should be read in conjunction with the 2011 Annual Report on Form 10-K of the Company. The accompanying consolidated financial statements are unaudited. These interim consolidated financial statements are prepared in accordance with the requirements of Form 10-Q, and accordingly do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America ("GAAP") for complete financial statements. In the opinion of management, the unaudited consolidated financial information included in this report reflects all adjustments, consisting of normal recurring accruals of operations for the three month periods ending March 31, 2012 and 2011. The consolidated results of operations for the three months ended March 31, 2012 are not necessarily indicative of results to be expected for the entire year. Management of the Company has evaluated all subsequent events through May 10, 2012, the date the interim consolidated financial statements were issued.</td></tr></table> </div>

-8114000

-19385000

54555000

46441000

86980000

67595000

0.01

84401000

3781000

12066000

40662000

31441000

-3549000

86358000

4448000

12028000

40737000

32694000

-3549000

50000000

8132552

8147471

7911539

7926458

40662000

40737000

1999000

9450000

245000

-297000

-34000

7145000

6745000

865187000

858324000

325000

314000

<div> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td valign="top"> 4.</td> <td valign="top" colspan="2"> Recent Accounting Pronouncements</td></tr> <tr><td valign="top">  </td> <td valign="top" colspan="2">  </td></tr> <tr><td valign="top">  </td> <td valign="top" colspan="2"> In May 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2011-03, Transfers and Servicing (Topic 860): Reconsideration of Effective Control for Repurchase Agreements. The ASU is intended to improve financial reporting of repurchase agreements ("repos") and other agreements that both entitle and obligate a transferor to repurchase or redeem financial assets before their maturity. The amendments to the codification in this ASU are intended to improve the accounting for these transactions by removing from the assessment of effective control the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets. The guidance in the ASU is effective for the first interim or annual period beginning on or after December 15, 2011. The provisions of this guidance had no impact on the consolidated financial condition, results of operation or liquidity of the Company.</td></tr> <tr><td valign="top">  </td> <td valign="top" colspan="2">  </td></tr> <tr><td valign="top">  </td> <td valign="top" colspan="2"> In June 2011, the FASB issued ASU No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. This ASU represents the converged guidance of the FASB and the International Accounting Standards Board ("IASB") (the "Boards") on fair value measurement. The collective efforts of the Boards and their staffs, reflected in ASU 2011-04, have resulted in common requirements for measuring fair value and for disclosing information about fair value measurements, including a consistent meaning of the term "fair value." The Boards have concluded the common requirements will result in greater comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with GAAP and IFRSs. The amendments to the FASB Accounting Standards Codification (Codification) in this ASU are to be applied prospectively. For public entities, the amendments are effective during interim and annual periods beginning after December 15, 2011. The provisions of this guidance had no impact on the consolidated financial condition, results of operations or liquidity of the Company.</td></tr> <tr><td valign="top">  </td> <td valign="top" colspan="2">  </td></tr> <tr><td valign="top">  </td> <td valign="top" colspan="2"> In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. This ASU amends the Codification to allow an entity the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total number for comprehensive income. ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders' equity. The amendments to the Codification in the ASU do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. ASU 2011-05 should be applied retrospectively. For public entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. In October 2011, the FASB deferred the effective date of the amendment. The provisions of this guidance are not expected to have a significant impact on the consolidated financial condition, results of operations or liquidity of the Company.</td></tr></table> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="top" width="5%">  </td> <td valign="top" width="95%">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> In December 2011, the FASB has issued ASU No. 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. The amendments to the Codification in ASU No. 2011-12 are effective at the same time as the amendments in ASU No. 2011-05, Comprehensive Income (Topic 220): Presentations of Comprehensive Income, so that entities will not be required to comply with the presentation requirements in ASU No. 2011-05 that ASU No. 2011-12 is deferring. The amendments are being made to allow the FASB time to redeliberate whether to present on the face of the financial statements the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for all periods presented. While the FASB is considering the operational concerns about the presentation requirements for reclassification adjustments and the needs of financial statement users for additional information about reclassification adjustments, entities should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before ASU No. 2011-05. All other requirements in ASU No. 2011-05 are not affected by ASU No. 2011-12, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. Public entities should apply these requirements for fiscal years, and interim periods within those years, beginning after December 15, 2011. </td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> In September 2011, the FASB issued ASU No. 2011-08, Intangibles-Goodwill and Other (Topic 350): Testing Goodwill for Impairment. ASU 2011-08 is intended to simplify how entities, both public and nonpublic, test goodwill for impairment. ASU 2011-08 permits an entity to first assess qualitative factors to determine whether it is "more likely than not" that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in Topic 350, Intangibles-Goodwill and Other. The more-likely-than-not threshold is defined as having a likelihood of more than 50%. ASU 2011-08 is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The provisions of this guidance did not have a significant impact on the consolidated financial condition, results of operations or liquidity of the Company.</td></tr></table> </div>

79000

0.08

0.17

0.08

0.15

<div> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td valign="top"> 3.</td> <td valign="top"> Earnings Per Share</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per share, which reflects the potential dilution that could occur if outstanding stock options were exercised, stock awards were fully vested, and promissory notes were converted, resulting in the issuance of common stock that then shared in our earnings, is computed by dividing net income as adjusted for the income impact of assumed conversions by the weighted average number of common shares outstanding and common stock equivalents. The following table shows the computation of the basic and diluted earnings per share:</td></tr></table> EARNINGS PER SHARE (Dollar amounts in thousands, except per share data) <table style="margin-left: 5%;" border="0" cellspacing="0" cellpadding="0" width="95%"> <tr style="font-size: 1px;"><td valign="bottom" width="70%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="10%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="2%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom" colspan="5"> Three months ended March 31,</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> 2012</td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> 2011</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> (Numerator):</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Net income available to common stockholders</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 1,332</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 651</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Plus: Income impact of assumed conversions</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" valign="bottom"> Interest on 10% convertible debentures, net of income tax  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 149</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Income available to common stockholders plus assumed conversions</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 1,481</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 651</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td valign="bottom"> (Denominator):</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Weighted average number of common shares outstanding-basic</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 7,914,326</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 7,911,539</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Plus: Incremental shares of assumed conversions:</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Dilutive effect of stock options</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom"> (1)</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom"> (1)</td></tr> <tr><td valign="bottom"> Dilutive effect of restricted stock units</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 19,124</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 5,845</td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> Dilutive effect of convertible promissory notes (2)</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 1,890,000</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Dilutive potential common shares</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 1,909,124</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 5,845</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Adjusted weighted-average shares</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 9,823,450</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 7,917,384</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td valign="bottom"> Basic Earnings Per Share</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 0.17</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 0.08</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Diluted Earnings Per Share</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 0.15</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 0.08</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr></table> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="top" width="5%">  </td> <td valign="top" width="5%">  </td> <td valign="top" width="90%">  </td></tr> <tr><td valign="top">  </td> <td valign="top">   (1)</td> <td valign="top">   At March 31, 2012 and 2011, there were 103,400 and 112,600 outstanding stock options, respectively, which are not included in the computation of diluted earnings per share because they are considered anti-dilutive.</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> (2)</td> <td valign="top"> At March 31, 2012 and 2011, the Company had $9.45 million of outstanding Convertible Promissory Notes (the "Convertible Notes"). The Convertible Notes are convertible into shares of our common stock at a conversion ratio of one share of common stock for each $5.00 in aggregate principal amount held on the record date of the conversion subject to certain adjustments as described in the Convertible Notes. On October 1, 2014, one-half of the original principal amounts of the Convertible Notes are mandatorily convertible at the conversion ratio if conversion has not occurred. At March 31, 2012, the entire 1,890,000 common shares are included since the average market price per share for the quarter ended March 31, 2012 exceeded the conversion price of $5.00 per share. At March 31, 2011 the common shares are not included due to their anti-dilutive effect.</td></tr></table> </div>

280000

270000

<div> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td valign="top"> 11.</td> <td valign="top"> Equity Investment</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> Baylake Bank owns a 49.8% interest (500 shares) in United Financial Services, Inc. ("UFS"), a data processing service. In addition to the ownership interest, the Bank and UFS have a common member on each of their respective Boards of Directors. The investment in this entity is carried under the equity method of accounting and the pro rata share of its net income is included in other income. The carrying value of the investment in UFS was $3.9 million at March 31, 2012 and December 31, 2011. The current book value of UFS is approximately $7,813 per share.</td></tr></table> </div>

<div> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td valign="top"> 5.</td> <td valign="top"> Fair Value</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> Accounting guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value:</td></tr></table> <table border="0" cellspacing="0" cellpadding="0" width="95%"> <tr style="font-size: 1px;"><td valign="top" width="10%">  </td> <td valign="top" width="10%">  </td> <td valign="top" width="80%">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> Level 1:</td> <td valign="top"> Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. </td></tr> <tr><td valign="top">  </td> <td valign="top"> Level 2:</td> <td valign="top"> Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. </td></tr> <tr><td valign="top">  </td> <td valign="top"> Level 3:</td> <td valign="top"> Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability. </td></tr></table> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="top" width="5%">  </td> <td valign="top" width="95%">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> A financial instruments categorization within the valuation hierarchy is based upon the lowest level of input within the valuation hierarchy that is significant to the fair value measurement. </td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> The methods and assumptions used to estimate fair value are described below.</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> Securities available for sale - the fair value of securities available for sale is determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities (Level 2 inputs). For other securities not able to be priced on matrix pricing, outside third parties are relied upon (Level 3 inputs). None of the Company's securities available for sale at March 31, 2012 were measured using Level 1 inputs.</td></tr></table> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="top" width="5%">  </td> <td valign="top" width="95%">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> Mortgage servicing rights - the fair value of mortgage servicing rights is based on a valuation model that calculates the present value of estimated net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income. These assumptions include servicing costs, expected loan lives, discount rates, and the determination of whether the loan is likely to be refinanced. The Company compares the valuation model inputs and results to published industry data for reasonableness (Level 2 inputs).</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> Foreclosed properties - the fair value of foreclosed properties is determined using a variety of market information including but not limited to appraisals, professional market assessments and real estate tax assessment information. Foreclosed properties adjusted to fair value less costs to sell upon transfer to foreclosed properties, establishing a new cost basis. Subsequently, foreclosed properties are carried at the lower of cost or fair value less estimated costs to sell (Level 3 inputs). </td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> Impaired loans - the fair value of impaired loans is based on review of comparable collateral in the similar marketplaces (Level 3 inputs) or an analysis of expected cash flows of the loan in relationship to the contractual terms of the loan (Level 3 inputs). Impaired loans are carried at the lower of amortized cost or fair value less estimated costs to sell. Not all impaired loans are carried at fair value if there is sufficient collateral or expected repayments exceed the recorded investments of such loans.</td></tr></table> ASSETS MEASURED AT FAIR VALUE ON A RECURRING BASIS (Dollar amounts in thousands) Assets measured at fair value on a recurring basis are summarized below: <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="bottom" width="43%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="10%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="10%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="10%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="10%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> March 31, 2012</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Quoted Prices in Active Markets For Identical Assets (Level 1)</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Significant Other Observable Inputs (Level 2)</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Significant Unobservable Inputs (Level 3)</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Assets:</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Securities available for sale:</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> U.S. government-sponsored agency securities</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 13,605</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 13,605</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Mortgage-backed securities</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 188,698</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 183,775</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 4,923</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Asset-backed securities</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 4,766</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 4,766</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Obligations of states and political subdivisions</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 57,637</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 57,637</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Private placement and corporate bonds</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 12,713</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 12,713</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" valign="bottom"> Other securities</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 1,655</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 1,655</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Total securities available for sale</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 279,074</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 274,151</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 4,923</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" valign="bottom"> Mortgage servicing rights</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 697</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 697</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td></tr> <tr><td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom"> Total</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 279,771</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 274,848</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 4,923</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td></tr></table> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="bottom" width="43%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="10%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="10%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="10%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="10%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> December 31, 2011</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Quoted Prices in Active Markets For Identical Assets (Level 1)</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Significant Other Observable Inputs (Level 2)</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Significant Unobservable Inputs (Level 3)</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Assets:</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Securities available for sale:</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> U.S. government-sponsored agency securities</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 14,138</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 14,138</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Mortgage-backed securities</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 193,592</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 177,330</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 16,262</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Asset-backed securities</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 4,969</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 4,969</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Obligations of states and political subdivisions</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 57,766</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 57,766</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Private placement and corporate bonds</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 12,212</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 12,212</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" valign="bottom"> Other securities</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 1,654</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 1,654</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Total securities available for sale</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 284,331</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 268,069</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 16,262</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" valign="bottom"> Mortgage servicing rights</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 634</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 634</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td></tr> <tr><td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom"> Total</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 284,965</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 268,703</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 16,262</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td></tr></table> The following table presents additional information about assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3): <table border="0" cellspacing="0" cellpadding="0" width="80%"> <tr style="font-size: 1px;"><td valign="bottom" width="66%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="26%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> For the three month period ended March 31, 2012</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Balance, beginning of period</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 16,262</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Transfer into Level 3</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Net unrealized gains</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 499</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Transfer out of Level 3</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> (10,593</td> <td valign="bottom"> )</td></tr> <tr><td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> Principal payments</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (1,245</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td style="padding-bottom: 3px;" valign="bottom"> Balance, end of period</td> <td valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 4,923</td> <td style="padding-bottom: 3px;" valign="bottom">  </td></tr></table> The transfers out of Level 3 during the quarter were the result of the availability of quoted prices on a portion of the securities that were Level 3 at December 31, 2011. ASSETS MEASURED AT FAIR VALUE ON A NON-RECURRING BASIS (Dollar amounts in thousands) Assets measured at fair value on a non-recurring basis are summarized below: <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="bottom" width="49%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="10%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> March 31, 2012</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Quoted Prices in Active Markets For Identical Assets (Level 1)</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Significant Other Observable Inputs (Level 2)</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Significant Unobservable Inputs (Level 3)</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom"> Assets:</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Impaired loans</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 10,104</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 10,104</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" valign="bottom"> Foreclosed properties, net</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 14,766</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 14,766</td> <td style="padding-bottom: 1px;" valign="bottom">  </td></tr> <tr><td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom"> Total</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 24,870</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 24,870</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td></tr></table> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="bottom" width="49%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="10%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> December 31, 2011</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Quoted Prices in Active Markets For Identical Assets (Level 1)</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Significant Other Observable Inputs (Level 2)</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Significant Unobservable Inputs (Level 3)</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Assets:</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Impaired loans</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 4,685</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 4,685</td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> Foreclosed properties, net</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 12,119</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 12,119</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td style="padding-bottom: 3px;" valign="bottom"> Total</td> <td valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 16,804</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> —</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> —</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 16,804</td> <td style="padding-bottom: 3px;" valign="bottom">  </td></tr></table> Required Financial Disclosures about Fair Value of Financial Instruments The accounting guidance for financial instruments requires disclosures of estimated fair value of certain financial instruments and the methods and significant assumptions used to estimate their fair values. Certain financial instruments and all nonfinancial instruments are excluded from the scope of this guidance. Accordingly, the fair value disclosures required by this guidance are only indicative of the value of individual financial instruments as of the dates indicated and should not be considered an indication of our fair value. The following table presents the carrying amount and estimated fair value of certain financial instruments: <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="bottom" width="51%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="11"> (Dollar amounts in thousands)</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom" colspan="5"> March 31, 2012</td> <td valign="bottom">  </td> <td valign="bottom" colspan="5"> December 31, 2011</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Carrying Amount</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Fair Value</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Carrying Amount</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Fair Value</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> FINANCIAL ASSETS</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Cash</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 67,595</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 67,595</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 86,980</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 86,980</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Federal funds sold</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 513</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 513</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Securities available for sale</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 279,074</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 279,074</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 284,331</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 284,331</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Loans held for sale</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 1,849</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 1,883</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 1,869</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 1,898</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Loans, net</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 625,685</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 627,819</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 620,377</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 622,967</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Federal Home Loan Bank stock</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 4,710</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 4,710</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 6,792</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 6,792</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Mortgage servicing rights</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 697</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 697</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 634</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 634</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Foreclosed properties, net</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 14,766</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 14,766</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 12,119</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 12,119</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Accrued interest receivable</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 3,681</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 3,681</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 3,381</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 3,381</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> FINANCIAL LIABILITIES</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Deposits</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 858,324</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 851,739</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 865,187</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 851,054</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Repurchase agreements</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 33,277</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 33,277</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 47,566</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 47,566</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Federal Home Loan Bank advances</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 55,000</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 56,637</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 55,000</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 56,968</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Subordinated debentures</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 16,100</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 16,100</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 16,100</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 16,100</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Convertible promissory notes</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 9,450</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 9,645</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 9,450</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 9,387</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Accrued interest payable</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 1,168</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 1,168</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 898</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 898</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td valign="bottom"> Off-balance sheet credit related items:</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Letters of credit</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 1,995</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 1,995</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 1,995</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 1,995</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr></table> The methods and assumptions that were used to estimate the fair value of financial assets and financial liabilities that are measured at fair value on a recurring and non-recurring basis have been previously disclosed. The following methods and assumptions were used to estimate the fair value of other financial instruments for which it is practicable to estimate that value: (a) Cash The carrying amount of cash approximates fair value. (b) Federal Funds Sold The carrying amount of federal funds sold approximates fair value. (c) Loans Held for Sale The fair value of loans held for sale is based on actual market quotes from third party investors. (d) Cash Value of Life Insurance The fair value of life insurance approximates the carrying amount, because upon liquidation of these investments, the Company would receive the cash surrender value, which equals the carrying amount. (e) Federal Home Loan Bank Stock It is not practical to determine the fair value of Federal Home Loan Bank ("FHLB") stock due to restrictions placed on its transferability. No secondary market exists for FHLB stock. The stock is bought and sold at par by the FHLB. Management believes that the recorded value is fair value. (f) Accrued Interest Receivable The carrying amount of accrued interest receivable approximates fair value. (g) Deposits The carrying amount of demand deposits (interest-bearing and non-interest-bearing), savings deposits, and money market deposits approximates fair value. The carrying amount of variable rate time deposits, including certificates of deposit, approximates fair value. For fixed rate time deposits, fair value is based on discounted cash flows using current market interest rates. (h) Repurchase Agreements The carrying amount of repurchase agreements approximates fair value. (i) Federal Home Loan Bank Advances The carrying amount of variable rate FHLB advances approximates fair value. For fixed rate advances, fair value is based on discounted cash flows using current market interest rates. (j) Subordinated Debentures The carrying amount of variable rate subordinated debentures approximates fair value. (k) Convertible Promissory Notes The fair value of fixed rate convertible promissory notes is based on discounted cash flows using current market interest rates. (l) Accrued Interest Payable The carrying amount of accrued interest payable approximates fair value. (m) Off Balance Sheet Credit Related Items-Letters of Credit The carrying amount of the off balance sheet letters of credit approximates fair value based on management's evaluation of the factors affecting the letters of credit. </div>

731000

362000

513000

6792000

4710000

1251000

1168000

283000

240000

1038000

596000

8000

2000

125000

678000

386000

361000

6641000

630000

1782000

231000

177000

<div> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td valign="top"> 10.</td> <td valign="top"> Income Taxes</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> In accordance with the accounting guidance for income taxes, deferred income taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates that will apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date.</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> A tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that has a greater than 50% chance of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded.</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> The Company regularly reviews the carrying amount of our deferred income tax assets to determine if the establishment of a valuation allowance is necessary. If, based on the available evidence, it is more likely than not that all or a portion of our deferred income tax assets will not be realized in future periods, a deferred income tax valuation allowance would be established. Consideration is given to various positive and negative factors that could affect the realization of the deferred income tax assets. In evaluating available evidence, management considers, among other things, historical financial performance, expectation of future earnings, the ability to carry back losses to recoup taxes previously paid, length of statutory carry forward periods, experience with operating loss and tax credit carry forwards not expiring unused, tax planning strategies and timing of reversals of temporary differences. Significant judgment is required in assessing future earning trends and the timing of reversals of temporary differences. Our evaluation is based on current tax laws as well as management's expectations of future performance. At March 31, 2012 and December 31, 2011, the Company determined that no valuation allowance was required to be taken against our deferred income tax asset other than a valuation allowance to reduce our state net operating loss carry forwards to an amount which the Company believes the benefit will more likely than not be realized. The Company continues to assess the amount of tax benefits it may realize.</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> The Company is subject to the income tax laws of the U.S., its states and municipalities. These tax laws are complex and subject to different interpretations by the taxpayer and the relevant Governmental taxing authorities. Accounting guidance related to uncertainty in income taxes prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under the guidance, tax positions shall initially be recognized in the financial statements when it is more likely than not the position will be sustained upon the examination by the tax authorities. Such tax positions shall initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% chance of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and all relevant facts. The guidance also revises disclosure requirements to include an annual tabular roll forward of unrecognized tax benefits. In establishing a provision for income tax expense, the Company must make judgments and interpretations about the application of these inherently complex tax laws within the framework existing under GAAP. The Company recognizes interest and/or penalties related to income tax matters in income tax expense.</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> As of March 31, 2012, the gross unrecognized tax benefits represent estimated tax and interest costs related to a pending IRS audit for the 2009 tax year. In January 2012, the Company and the IRS reached a tentative settlement agreement to finalize the audit. The Company paid interest related to the timing of deductions taken for income tax purposes. The liability amount recorded by the Company is considered adequate to cover the proposed settlement amount.</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (dollar amounts in thousands):</td></tr></table> <table border="0" cellspacing="0" cellpadding="0" width="85%" align="center"> <tr style="font-size: 1px;"><td valign="bottom" width="70%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="10%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Balance, January 1, 2012</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 174</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Additions for tax positions of prior years</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Settlements</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (34</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td style="padding-bottom: 3px;" valign="bottom"> Balance, March 31, 2012</td> <td valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 140</td> <td style="padding-bottom: 3px;" valign="bottom">  </td></tr></table> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="top" width="5%">  </td> <td valign="top" width="95%">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> Changes in the deferred income tax balances were as follows (dollar amounts in thousands):</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> Deferred income taxes – Available for sale securities</td></tr></table> <table border="0" cellspacing="0" cellpadding="0" width="85%" align="center"> <tr style="font-size: 1px;"><td valign="bottom" width="58%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="9%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="9%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="5"> For the three months ended March 31,</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> 2012</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> 2011</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Balances at beginning of period</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> (2,468</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> (659</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td valign="bottom"> Net change during period</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> (434</td> <td valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> (810</td> <td valign="bottom"> )</td></tr> <tr><td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom"> Balances at end of period</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> (2,902</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> (1,469</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom"> )</td></tr></table> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="top" width="5%">  </td> <td valign="top" width="95%">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> Deferred income taxes – Other than available for sale securities</td></tr></table> <table border="0" cellspacing="0" cellpadding="0" width="85%" align="center"> <tr style="font-size: 1px;"><td valign="bottom" width="58%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="9%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="9%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="5"> For the three months ended March 31,</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> 2012</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> 2011</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Balances at beginning of period</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 9,613</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 9,861</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Net change during period</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 34</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 297</td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom"> Balances at end of period</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 9,647</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 10,158</td></tr></table> </div>

-21000

450000

-3493000

811000

-28665000

-6863000

7785000

-14289000

590000

-29000

208000

229000

10634000

10318000

8482000

8010000

760741000

751579000

2604000

1998000

1956000

1394000

22000

23000

314000

258000

67000

78000

6730000

6570000

8030000

8320000

21000

30000

1751000

1906000

380000

372000

2312000

1728000

3381000

3681000

-745000

-757000

4556000

4427000

1002528000

981347000

1086929000

1067705000

10638000

11250000

620377000

625685000

<div> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td valign="top"> 7.</td> <td valign="top"> Loans</td></tr></table>           Loans held for investment are summarized as follows (dollar amounts in thousands): <table style="margin-left: 5%;" border="0" cellspacing="0" cellpadding="0" width="95%"> <tr style="font-size: 1px;"><td valign="bottom" width="62%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="12%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="12%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> March 31, 2012</td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> December 31, 2011</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom" colspan="2">  </td> <td valign="bottom">  </td> <td valign="bottom" colspan="2">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Construction</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 53,049</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 53,606</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Real Estate-Mortgage</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 148,920</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 143,456</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Real Estate-Commercial</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 318,043</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 317,198</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td valign="bottom"> Commercial Loans</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 92,625</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 91,750</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Consumer Loans</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 8,416</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 8,809</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Municipal Loans</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 16,287</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 16,577</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Gross Loans</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 637,340</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 631,396</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Less: Deferred Origination Fees, net of costs</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> (405</td> <td valign="bottom"> )</td> <td valign="bottom">  </td> <td valign="bottom"> (381</td> <td valign="bottom"> )</td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Less: Allowance for Loan Losses</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (11,250</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (10,638</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td style="padding-bottom: 3px;" valign="bottom"> Loans, net</td> <td valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 625,685</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 620,377</td> <td style="padding-bottom: 3px;" valign="bottom">  </td></tr></table> Loans having a carrying value of $110,949 and $105,114 are pledged as collateral for borrowings from the FHLB at March 31, 2012 and December 31, 2011, respectively. A breakdown of the allowance for loan losses and recorded investment in loans as of and for the three months ended March 31, 2012 is as follows (dollar amounts in thousands): <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="bottom" width="19%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="6%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="6%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="6%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="6%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Construction Loans</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Real Estate- Mortgage</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Real Estate- Commercial</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Commercial</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Consumer</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Municipal</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2" nowrap="nowrap"> Not Specifically Allocated</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Total</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Allowance for Loan Losses:</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td valign="bottom"> Beginning balance</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 1,231</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 1,995</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 5,467</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 770</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 161</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 1,014</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 10,638</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Charge-offs</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (3</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (47</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (1,074</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (59</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (22</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (1,205</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td valign="bottom"> Recoveries</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 6</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 3</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 24</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 23</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 11</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 67</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> Provision</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 99</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 50</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 2,591</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (43</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (8</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (939</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 1,750</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 3px;" valign="bottom"> Ending Balance</td> <td valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 1,333</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 2,001</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 7,008</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 691</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 142</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> —</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 75</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 11,250</td> <td style="padding-bottom: 3px;" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Loans:</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Ending Balance</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 53,049</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 148,920</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 317,638</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 92,625</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 8,416</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 16,287</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 636,935</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> ALL</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (1,333</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (2,001</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (7,008</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (691</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (142</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (75</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (11,250</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 3px;" valign="bottom"> Recorded investment</td> <td valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 51,716</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 146,919</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 310,630</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 91,934</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 8,274</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 16,287</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> (75</td> <td style="padding-bottom: 3px;" valign="bottom"> )</td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 625,685</td> <td style="padding-bottom: 3px;" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Ending balance:</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td valign="bottom"> Individually evaluated</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 4,022</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 4,108</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 20,128</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 642</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 29</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 28,929</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> Collectively evaluated</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 49,027</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 144,812</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 297,510</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 91,983</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 8,387</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 16,287</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 608,006</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 3px;" valign="bottom"> Total</td> <td valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 53,049</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 148,920</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 317,638</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 92,625</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 8,416</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 16,287</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> —</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 636,935</td> <td style="padding-bottom: 3px;" valign="bottom">  </td></tr></table> A breakdown of the allowance for loan losses and recorded investment in loans as of and for the three months ended March 31, 2011 is as follows (dollar amounts in thousands): <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="bottom" width="19%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="6%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="6%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="6%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="8%">  </td> <td valign="bottom" width="2%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="6%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Construction Loans</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Real Estate- Mortgage</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Real Estate- Commercial</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Commercial</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Consumer</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Municipal</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2" nowrap="nowrap"> Not Specifically Allocated</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Total</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Allowance for Loan Losses:</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td valign="bottom"> Beginning balance</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 1,424</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 2,103</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 6,355</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 1,189</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 391</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 40</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 11,502</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Charge-offs</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (62</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (393</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (222</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (21</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (157</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> —</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (855</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td valign="bottom"> Recoveries</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 50</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 2</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 71</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 15</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 13</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 151</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> Provision</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (36</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 678</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (23</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (161</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 142</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 700</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 1,300</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 3px;" valign="bottom"> Ending balance</td> <td valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 1,376</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 2,390</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 6,181</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 1,022</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 389</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> —</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 740</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 12,098</td> <td style="padding-bottom: 3px;" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Loans:</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Ending balance</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 53,298</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 130,322</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 329,908</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 81,664</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 9,576</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 15,960</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 620,728</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> ALL</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (1,376</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (2,390</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (6,181</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (1,022</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (389</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (740</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (12,098</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 3px;" valign="bottom"> Recorded investment</td> <td valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 51,922</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 127,932</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 323,727</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 80,642</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 9,187</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 15,960</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> (740</td> <td style="padding-bottom: 3px;" valign="bottom"> )</td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 608,630</td> <td style="padding-bottom: 3px;" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Ending balance:</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td valign="bottom"> Individually evaluated</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 118</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 2,196</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 4,472</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 474</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 15</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom"> $</td> <td valign="bottom"> 7,275</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> Collectively evaluated</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 53,180</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 128,126</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 325,436</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 81,190</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 9,561</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 15,960</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 613,453</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 3px;" valign="bottom"> Total</td> <td valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 53,298</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 130,322</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 329,908</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 81,664</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 9,576</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 15,960</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> —</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 620,728</td> <td style="padding-bottom: 3px;" valign="bottom">  </td></tr></table> A summary of past due loans at March 31, 2012 and December 31, 2011 is as follows (dollar amounts in thousands): <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="bottom" width="50%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="12%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="12%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="12%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="8"> March 31, 2012</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> 30-89 Days Past Due (accruing)</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> 90 Days & Over or on non-accrual</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Total</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Construction</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 364</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 4,022</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 4,386</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Real estate – mortgage</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 753</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 2,717</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 3,470</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Real estate – commercial</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 3,413</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 15,422</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 18,835</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Commercial</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 1,173</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 269</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 1,442</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Consumer</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 51</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 29</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 80</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" valign="bottom"> Municipal</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom"> Total</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 5,754</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 22,459</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 28,213</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td></tr></table> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="bottom" width="50%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="12%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="12%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="12%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="8"> December 31, 2011</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> 30-89 Days Past Due (accruing)</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> 90 Days & Over or on non-accrual</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Total</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Construction</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 435</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 4,945</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 5,380</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Real estate – mortgage</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 845</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 2,676</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 3,521</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Real estate – commercial</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 2,072</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 11,660</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 13,732</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Commercial</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 41</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 259</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 300</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Consumer</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 59</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 43</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 102</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" valign="bottom"> Municipal</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> —</td> <td style="padding-bottom: 1px;" valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom"> Total</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 3,452</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 19,583</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" bgcolor="#d6f3e8" valign="bottom"> 23,035</td> <td style="padding-bottom: 3px;" bgcolor="#d6f3e8" valign="bottom">  </td></tr></table> Credit Quality: Management utilizes a risk grading matrix on each of the Company's commercial loans. Loans are graded on a scale of 1 to 7. A description of the loan grades is as follows: 0001 - Excellent Risk. Borrowers of highest quality and character. Almost no risk possibility. Balance sheets are very strong with superior liquidity, excellent debt capacity and low leverage. Cash flow trends are positive and stable. Excellent ratios. 0002 - Very Good Risk. Good ratios in all areas. High quality borrower. Normally quite liquid. Differs slightly from a 0001 customer. 0003 - Strong in most categories. Possible higher levels of debt or shorter track record. Minimal attention required. Good management. 0004 - Better than Average Risk. Adequate ratios, fair liquidity, desirable customer. Proactive management. Performance trends are positive. Any deviations are limited and temporary as a historical trend. 0005 - Satisfactory Risk. Some ratios slightly weak. Overall ability to repay is adequate. Capable and generally proactive management in all critical positions. Margins and cash flow may lack stability but trends are stable to positive. Company normally profitable year to year but may experience an occasional loss. 0006 A - Weakness detected in either management, capacity to repay or balance sheet. Erratic profitability and financial performance. Loan demands more attention. Includes loans deemed to have weaknesses and less than 90 days past due. 0006 B - Have weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the Bank's collateral position at some future date. Loans rated 0006B are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification. Includes loans deemed to have weaknesses and less than 90 days past due. 0007 - Well defined weaknesses and trends that jeopardize the repayment of loans. Ranging from workout to legal. Includes loans that are nonaccrual and/or 90 days and over past due. Below is a breakdown of loans by risk grading as of March 31, 2012 (dollar amounts in thousands): <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="bottom" width="28%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="10%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="10%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="10%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="10%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="10%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> 0001-0005</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> 0006A</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> 0006B</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> 0007</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Total</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Commercial Loans</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 86,403</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 3,925</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 771</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 1,526</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 92,625</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Real Estate - Commercial</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 233,300</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 43,437</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 11,856</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 29,450</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 318,043</td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> Construction</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 38,536</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 5,785</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 2,919</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 5,809</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 53,049</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 358,239</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 53,147</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 15,546</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 36,785</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 463,717</td> <td style="padding-bottom: 1px;" valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Mortgage</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 142,008</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 851</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 885</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 5,176</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 148,920</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Consumer Loans</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 8,412</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 4</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 8,416</td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> Municipal Loans</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 16,287</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 16,287</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td style="padding-bottom: 3px;" valign="bottom"> Total</td> <td valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 524,946</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 53,998</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 16,431</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 41,965</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 637,340</td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> Deferred Origination Fees, net of costs</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (405</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td style="padding-bottom: 3px;" valign="bottom"> Total loans</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 636,935</td> <td style="padding-bottom: 3px;" valign="bottom">  </td></tr></table> Below is a breakdown of loss by risk grading as of December 31, 2011 (dollar amounts in thousands): <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="bottom" width="28%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="10%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="10%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="10%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="10%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="10%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> 0001-0005</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> 0006A</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> 0006B</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> 0007</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> Total</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Commercial Loans</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 84,652</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 4,618</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 1,051</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 1,429</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 91,750</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Real Estate – Commercial</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 227,815</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 43,690</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 11,592</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 34,101</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 317,198</td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> Construction</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 37,636</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 6,218</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 3,323</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 6,429</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 53,606</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 350,103</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 54,526</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 15,966</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 41,959</td> <td style="padding-bottom: 1px;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom"> 462,554</td> <td style="padding-bottom: 1px;" valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Mortgage</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 137,379</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 391</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 885</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 4,801</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> 143,456</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Consumer Loans</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 8,791</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> —</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 18</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 8,809</td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> Municipal Loans</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 16,577</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> —</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> 16,577</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td style="padding-bottom: 3px;" valign="bottom"> Total</td> <td valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 512,850</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 54,917</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 16,851</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 46,778</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 631,396</td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> Deferred Origination Fees, net of costs</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (381</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td style="padding-bottom: 3px;" valign="bottom"> Total loans</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 631,015</td> <td style="padding-bottom: 3px;" valign="bottom">  </td></tr></table> </div>

1869000

1849000

-35880000

-21219000

14454000

-907000

13312000

2741000

651000

1332000

104446000

106745000

8714000

7833000

2614000

3045000

40000

149000

605000

624000

57000

45000

10764000

10903000

667000

434000

678000

410000

1779000

1077000

956000

932000

15000000

25189000

19222000

-2082000

-1698000

-7215000

10916000

79000

24823000

26937000

153000

260000

12000

115000

600000

3046000

-920000

-5000

513000

16226000

17121000

2872000

792000

31918000

19558000

11000

2000

22953000

22899000

1300000

1750000

12119000

14766000

<div> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td valign="top"> 9.</td> <td valign="top"> Foreclosed Properties, Net</td></tr> <tr><td valign="top">  </td> <td valign="top">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> Foreclosed properties are summarized as follows (dollar amounts in thousands):</td></tr></table> <table border="0" cellspacing="0" cellpadding="0" width="90%" align="center"> <tr style="font-size: 1px;"><td valign="bottom" width="70%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="9%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="9%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="5"> For the three months ended March 31,</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> 2012</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> 2011</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Beginning balance</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 14,913</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 19,934</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Transfer of net realizable value to foreclosed properties</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 3,858</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 1,244</td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Sale proceeds</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (792</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> (2,872</td> <td bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td valign="bottom"> Net gain from disposal of foreclosed properties</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 39</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 83</td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> Valuation allowance related to properties disposed</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (740</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (572</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td valign="bottom"> Total foreclosed properties</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 17,278</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 17,817</td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> Valuation allowance for losses</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (2,512</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (4,092</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td style="padding-bottom: 3px;" valign="bottom"> Total foreclosed properties, net</td> <td valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 14,766</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 13,725</td> <td style="padding-bottom: 3px;" valign="bottom">  </td></tr></table> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="font-size: 1px;"><td valign="top" width="5%">  </td> <td valign="top" width="95%">  </td></tr> <tr><td valign="top">  </td> <td valign="top"> Changes in the valuation allowance for losses on foreclosed properties were as follows (dollar amounts in thousands):</td></tr></table> <table border="0" cellspacing="0" cellpadding="0" width="90%" align="center"> <tr style="font-size: 1px;"><td valign="bottom" width="70%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="9%">  </td> <td valign="bottom" width="3%">  </td> <td valign="bottom" width="1%">  </td> <td valign="bottom" width="9%">  </td> <td valign="bottom" width="1%">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="5"> For the three months ended March 31,</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> 2012</td> <td valign="bottom">  </td> <td style="border-bottom: black 1px solid;" valign="bottom" colspan="2"> 2011</td> <td valign="bottom">  </td></tr> <tr><td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom">  </td></tr> <tr><td bgcolor="#d6f3e8" valign="bottom"> Beginning balance</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 2,794</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td bgcolor="#d6f3e8" valign="bottom"> $</td> <td bgcolor="#d6f3e8" valign="bottom"> 3,982</td> <td bgcolor="#d6f3e8" valign="bottom">  </td></tr> <tr><td valign="bottom"> Provision charged to operations</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 458</td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"> 682</td> <td valign="bottom">  </td></tr> <tr><td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> Amounts related to properties disposed</td> <td bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (740</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom">  </td> <td style="border-bottom: black 1px solid;" bgcolor="#d6f3e8" valign="bottom"> (572</td> <td style="padding-bottom: 1px;" bgcolor="#d6f3e8" valign="bottom"> )</td></tr> <tr><td style="padding-bottom: 3px;" valign="bottom"> Balance at end of period</td> <td valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 2,512</td> <td style="padding-bottom: 3px;" valign="bottom">  </td> <td style="border-bottom: black 3px double;" valign="bottom"> $</td> <td style="border-bottom: black 3px double;" valign="bottom"> 4,092</td></tr></table> </div>

31441000

32694000

47566000

33277000

190000

159000

8000

27000

7911539

7926458

14919

-75000

75000

16100000

1244000

3858000

221013

3549000