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 troubled debt restructuring. 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 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 troubled debt restructuring in 2012 when the loan was renewed after the  development stalled. As part of the restructuring agreement, the Company agreed to renew the loan and 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, we restructured three loan relationships that we identified as troubled debt restructurings. One of the  restructurings was a construction and land loan relationship totaling $599,000 which was secured by raw land which had  experienced a severe decline in value. We agreed to reduce the outstanding loan balance to $250,000 in exchange for a  $50,000 principal payment in 2011 with the remaining $200,000 to be received during the first quarter of 2012. We had  charged-off $141,000 of the loan during 2010 and an additional $208,000 during 2011, with the remaining $200,000 loan  balance classified as non-accrual and impaired as of December 31, 2011. The loan was paid off during the first quarter of  2012. Another loan relationship totaling $110,000 to a municipal sanitary and improvement district was also restructured in  2011 to extend the maturity and lower the interest rate to allow the district more time to develop the taxable valuation that  will provide cash flow for repayment of the loan. The loan was returned to accrual status during 2012 after a payment  history was established. The outstanding balance of $98,000 was current and accruing interest as December 31, 2012, but  still classified as impaired. The restructuring did not impact our allowance for loan losses. Also during 2011, a one-to-four  family residential real estate loan totaling $10,000 was classified as a troubled debt restructuring as a result of the customer  receiving a zero interest rate loan. The balance on this loan at December 31, 2012 was $8,000. This loan was classified as  impaired as of December 31, 2012 and December 31, 2011.  During 2010, we restructured two loan relationships that were identified as troubled debt restructurings. One of the  relationships was an $853,000 real estate loan which was secured by real estate which was deficient based on the appraised  value. The relationship was restructured into two 1-4 family residential real estate loans to a borrower who was  experiencing financial difficulty and to whom we granted concessions at renewal. The value of the real estate supported  $563,000 of the loan relationship. The $290,000 collateral deficiency of the real estate had previously been included in our  allowance on impaired loans. The loan was returned to accrual status during 2010 after a payment history was established,  while the collateral deficiency was charged-off. After the death of the borrower during 2012, the loan was placed back on  non-accrual until the estate is settled. The outstanding balance of the loan was $485,000 and $518,000 at December 31,  2012 and December 31, 2011, respectively. A second loan relationship totaling $527,000 to another municipal sanitary and  improvement district was restructured in 2010 to extend the maturity and lower the interest rate to allow the district more  time to develop the taxable valuation that will provide cash flow for repayment of the loan. As of December 31, 2012 and  December 31, 2011, the outstanding balance of the loan was $543,000. The restructuring did not impact our allowance for  loan losses. This loan was current and accruing interest at December 30, 2012 and 2011, but still classified as impaired.  As part of our credit risk management, we continue to aggressively manage the loan portfolio to identify problem  loans and have placed additional emphasis on commercial real estate and construction and land relationships. We are  aggressively working to resolve the remaining problem credits or move the non-performing credits out of the loan portfolio. At December 31, 2012, we had $2.4 million of real estate owned as compared to $2.3 million at December 31, 2011. Real  estate owned primarily consists of a residential subdivision development we took possession of after the development  slowed and the borrower was unable to comply with the contractual terms of the loan, a commercial real estate building  resulting from a loan settlement, land previously acquired by the Bank for expansion and a few residential real estate  properties. The Company is currently marketing all of the properties in real estate owned.  Many financial institutions, including us, experienced a general increase in non-performing assets during recent  years, as even well-established business borrowers developed cash flow, profitability and other business-related problems as  a result of economic conditions. Despite an increase in our non-performing loans during 2012, we believe that our  allowance for loan losses at December 31, 2012 was appropriate, however, there can be no assurances that loan losses will  55 