BLUE RIDGE BANKSHARES, INC.  NOTES TO THE CONSOLIDATED FESANCIAL STATEMENTS  December 31,2012  Note 4. Loans Receivable and Related Allowance for Loan Losses (Continued)  December 31,2011  Residential loans  Commercial real estate loans  Non owner-occupied & multi-family  Owner-occupied & farmland  Construction loans  Residential construction loans  Commercial construction & raw land  loans  Home equity loans  Consumer loans  Commercial/farm loans  Municipal/other loans  Unearned income on loans  Total  Individually  Evaluated for  Impairment  $  $  1,449  2,302  1,850  - 1,438  - - - 1,196  - 8,235  Collectively  Evaluated for  Impairment  $ 45,446 21,289  10,507  1,219  8,642  2,582  2,322  8,998  7,949  (315)  $ 108,639  Total  $ 46,895  23,591  12,357  1,219  10,080  2,582  2,322  8,998  9,145  (315)  $ 116,874  The segments of the Bank’s loan portfolio are disaggregated to a level that allows management to  monitor risk and performance. In reviewing risk, management has determined there to be several  different risk categories within the loan portfolio. The allowance for loan losses consists of amounts  applicable to: (i) the commercial loan portfolio; (ii) the commercial real estate loan portfolio; (iii) the  municipal loan portfolio; (iv) the consumer loan portfolio; and, (v) the residential loan portfolio.  The commercial loan segment consists of loans made for the purpose of financing the activities of  commercial customers. The commercial real estate ("CRE") loan segment includes both non-owner  occupied and owner occupied CRE loans, in addition to multifamily residential and commercial real  estate construction loans. The municipal loan segment includes loans made to local govemments and  govemmental authorities in the normal course of their operations. The consumer loans consist of  motor vehicle loans, savings account loans, personal lines of credit, overdraft loans, other types of  secured consumer loans, and unsecured personal loans. The residential loan segment is made up of  fixed rate and adjustable rate single-family amortizing term loans, which are primarily first liens. The  residential loan segment also includes the Bank’s home equity loan portfolio, which are generally  second liens.  Management establishes the allowance for loan losses based upon its evaluation of the pertinent  factors underlying the types and quality of loans in the portfolio. Commercial loans and commercial  real estate loans are reviewed on a regular basis with a focus on larger loans along with loans which  have experienced past payment or financial deficiencies. Certain loans including commercial and  other loans which are experiencing payment or financial difficulties, loans in industries for which  economic trends are negative and loans which are of heightened concem to management are included  on the Bank’s "watch list". Watch list loans, if significant, and larger commercial loans and  commercial real estate loans which are 90 days or more past due are selected for impairment  testing. These loans are analyzed to determine if they are "impaired", which means that it is probable  that all amounts will not be collected according to the contractual terms ofthe loan agreement.  15  (Continued) 