The Company’s impaired loans increased from $2.5 million at December 31, 2011 to $14.5 million at December  31, 2012. The increase in impaired loans during 2012 was the result of an increase in non-accrual loans and TDRs. The  difference between the unpaid contractual principal and the impaired loan balance is a result of charge-offs recorded against  impaired loans. The difference in the Company’s non-accrual loan balances and impaired loan balances at December 31,  2012 and 2011, was related to TDRs that are current and accruing interest, but still classified as impaired. The following  table presents information on impaired loans:  (Dollars in thousands) At December 31, 2012, the Company had eight loan relationships that were classified as TDRs compared to five at  December 31, 2011. During 2012, the Company classified a commercial loan relationship consisting of two commercial  loans as a TDR after agreeing to extend the maturity of the loans while the borrower liquidated the business assets securing  the loans. The Company did not charge-off any of the loan balances as the anticipated proceeds were expected to exceed  the loan balances. As of December 31, 2012, the outstanding balances of these loans totaled $196,000 and were classified  as non-accrual and impaired. Also in 2012, a $3.3 million land loan was subject to a TDR. The loan was restructured into  two land loans totaling $2.2 million, which were classified as non-accrual and impaired at December 31, 2012, while the  remaining balance was charged off. Another land loan relationship totaling $1.6 million was restructured as a TDR during  2012, resulting in a $708,000 charge-off. The remaining loan balances of $896,000 were current and accruing interest at  December 31, 2012, but still classified as impaired. A third land loan relationship totaling $3.9 million was classified as a  TDR in 2012 when the loan was renewed after the development stalled. As part of the restructuring agreement, the  Company agreed to allow the borrower to attempt to sell the properties over the next year. Because the value of the  collateral securing the loan exceeded the outstanding balances, no charge-off was recorded. As of December 31, 2012, the  loan balances of $3.9 million were current and accruing interest, but still classified as impaired. During 2011, the Company restructured three loan relationships that we identified as TDRs. One of the  restructurings was a construction and land loan relationship totaling $599,000 which was secured by raw land which had  81  Unpaid  contractual  principal Impaired  loan balance Impaired  loans  without an  allowance Impaired  loans with  an  allowance Related  allowance  recorded Year-to-date  average loan  balance Year-to-date  interest  income  recognized One-to-four family residential real estate 1,570 $ 1,280 $ 1,072 $ 208 $ 65 $ 1,311 $ 32 $ Construction and land 574 225 200 25 8 419 - Commercial real estate 17 17 17 - - 20 - Commercial loans 78 78 - 78 35 83 - Agriculture loans 63 63 63 - - 65 - Municipal loans 784 784 653 131 65 772 35 Consumer loans 43 43 10 33 32 49 - Total impaired loans 3,129 $ 2,490 $ 2,015 $ 475 $ 205 $ 2,719 $ 67 $ As of December 31, 2011 Unpaid  contractual  principal Impaired  loan balance Impaired  loans  without an  allowance Impaired  loans with  an  allowance Related  allowance  recorded Year-to-date  average loan  balance Year-to-date  interest  income  recognized One-to-four family residential real estate 1,029 $ 739 $ 57 $ 682 $ 165 $ 767 $ 19 $ Construction and land 10,425 8,691 6,334 2,357 388 9,211 302 Commercial real estate 2,833 2,833 2,833 - - 3,352 - Commercial loans 1,475 1,475 395 1,080 268 1,621 3 Agriculture loans 5 5 5 - - 8 - Municipal loans 772 772 641 131 65 779 20 Consumer loans 18 18 3 15 15 20 - Total impaired loans 16,557 $ 14,533 $ 10,268 $ 4,265 $ 901 $ 15,758 $ 344 $ As of December 31, 2012