Residential real estate (“RRE”) — includes loans disaggregated into two classes: (1) consumer mortgage and (2)  investment property. Consumer installment — includes loans to individuals both secured by personal property and unsecured. Loans include  personal lines of credit, automobile loans, and other retail loans. These loans are underwritten in accordance with the Bank’s  general loan policies and procedures which require, among other things, proper documentation of each borrower’s financial  condition, satisfactory credit history, and if applicable, property value. The following is a summary of current, accruing past due and nonaccrual loans by portfolio class as of December 31,  2011 and 2010. • Consumer mortgage – primarily includes first or second lien mortgages and home equity lines to consumers that  are secured by a primary residence or second home. These loans are underwritten in accordance with the Bank’s  general loan policies and procedures which require, among other things, proper documentation of each  borrower’s financial condition, satisfactory credit history and property value.  • Investment property – primarily includes loans to finance income-producing 1-4 family residential properties.  Generally the primary source of repayment is dependent upon income generated from leasing the property  securing the loan. The underwriting of these loans takes into consideration the rental rates as well as the  financial health of the borrower.  page 52 Accruing Accruing Total 30-89 Days Greater than Accruing Non- Total  (In thousands) Current Past Due 90 days Loans Accrual Loans December 31, 2011: Commercial and industrial $ 53,721 1,191 — 54,912 76 $ 54,988 Construction and land development 34,402 317 34,719 5,095 39,814 Commercial real estate: Owner occupied 68,551 — — 68,551 1,651 70,202 Other 90,427 90,427 1,806 92,233 Total commercial real estate 158,978 — — 158,978 3,457 162,435 Residential real estate: Consumer mortgage 56,610 400 — 57,010 948 57,958 Investment property 42,144 845 42,989 778 43,767 Total residential real estate 98,754 1,245 — 99,999 1,726 101,725 Consumer installment 11,397 57 11,454 — 11,454 Total $ 357,252 2,810 — 360,062 10,354 $ 370,416 December 31, 2010: Commercial and industrial $ 52,643 124 — 52,767 521 $ 53,288 Construction and land development 43,547 201 43,748 4,102 47,850 Commercial real estate: Owner occupied 73,419 — — 73,419 2,833 76,252 Other 88,087 88,087 1,902 89,989 Total commercial real estate 161,506 — — 161,506 4,735 166,241 Residential real estate: Consumer mortgage 53,225 2,219 — 55,444 2,118 57,562 Investment property 37,556 767 38,323 356 38,679 Total residential real estate 90,781 2,986 — 93,767 2,474 96,241 Consumer installment 10,646 29 10,675 1 10,676 Total $ 359,123 3,340 — 362,463 11,833 $ 374,296