Note 4. LOANS

The following table presents a summary of loans receivable, net, by category at March 31, 2013 and December 31, 2012:

(in thousands)	March 31, 2013			December 31, 2012
Residential real estate	$	98,273		$	90,228
Commercial real estate	248,455			231,835
Construction, land acquisition, and development	22,363			32,502
Commercial and industrial loans	112,176			110,073
Consumer loans	109,378			109,783
State and political subdivisions	25,278			23,354
Total loans, gross	615,923			597,775
Unearned discount	(89		)	(103		)
Net deferred loan fees and costs	321			260
Allowance for loan and lease losses	(18,473		)	(18,536		)
Loans, net	$	597,682		$	579,396

The Company has granted loans, letters of credit and lines of credit to certain executive officers and directors of the Company as well as to certain related parties of executive officers and directors. See Note 10 to these consolidated financial statements for more information about related party transactions.

The Company originates one-to-four family mortgage loans primarily for sale in the secondary market. During the quarter ended March 31, 2013, the Company sold $3.7 million of one-to-four family mortgages. The Company retains servicing rights on these mortgages.

The Company had $847 thousand and $1.6 million in loans held-for-sale at March 31, 2013 and December 31, 2012, respectively. All loans held for sale are one-to-four family residential mortgage loans.

The Company does not have any lending programs commonly referred to as subprime lending. Subprime lending generally targets borrowers with weakened credit histories typically characterized by payment delinquencies, previous charge-offs, judgments, bankruptcies, or borrowers with questionable repayment capacity as evidenced by low credit scores or high debt-burden ratios.

See Note 2 to the Company’s consolidated financial statements included in the 2012 Form 10-K for the risk characteristics related to the Company’s loan segments.

The Company provides for loan losses based on the consistent application of its documented ALLL methodology. Loan losses are charged to the ALLL and recoveries are credited to it. Additions to the ALLL are provided by charges against income based on various factors which, in management’s judgment, deserve current recognition of estimated probable losses. Loan losses are charged-off in the period the loans, or portions thereof, are deemed uncollectible. Generally, the Company will record a loan charge-off (including a partial charge-off) to reduce a loan to the estimated recoverable amount based on its methodology detailed below. The Company regularly reviews the loan portfolio and makes adjustments for loan losses in order to maintain the ALLL in accordance with GAAP. The ALLL consists primarily of the following two components:

(1) Specific allowances are established for impaired loans, which are defined by the Company as all loan relationships with an aggregate outstanding balance greater than $100 thousand that are rated substandard and on non-accrual status, rated doubtful or loss, and all troubled debt restructured loans (“TDRs”). The amount of impairment provided for as an allowance is represented by the deficiency, if any, between the carrying value of the loan and either (a) the present value of expected future cash flows discounted at the loan’s effective interest rate, (b) the loan’s observable market price, or (c) the fair value of the underlying collateral, less estimated costs to sell, for collateral dependent loans. Impaired loans that have no impairment losses are not considered for general valuation allowances described below. If the Company determines that collection of the impairment amount is remote, the Company will record a charge-off.

(2) General allowances are established for loan losses on a portfolio basis for loans that do not meet the definition of impaired. The Company divides its portfolio into loan segments, with loans exhibiting similar characteristics. Loans rated special mention or substandard and accruing which are embedded in these loan segments are then separated from these loan segments. These loans are then subject to an analysis placing increased emphasis on the credit risk associated with these specific loans. The Company applies an estimated loss rate to each loan group. The loss rates applied are based on the Company’s own historical loss experience based on the loss rate for each segment of loans with similar risk characteristics in its portfolio. In addition, management evaluates and applies certain qualitative or environmental factors that are likely to cause estimated credit losses associated with the Company’s existing portfolio to differ from historical experience, which are discussed below. This evaluation is inherently subjective, as it requires material estimates that may be susceptible to significant revisions based upon changes in economic and real estate market conditions. Actual loan losses may be significantly more than the ALLL that is established, which could have a material negative effect on the Company’s operating results or financial condition.

Management makes adjustments for loan losses based on its evaluation of several qualitative and environmental factors, including but not limited to:

· Changes in national, local, and business economic conditions and developments, including the condition of various market segments;

· Changes in the nature and volume of the Company’s loan portfolio;

· Changes in the Company’s lending policies and procedures, including underwriting standards, collection, charge-off and recovery practices and results;

· Changes in the experience, ability and depth of the Company’s lending management and staff;

· Changes in the quality of the Company’s loan review system and the degree of oversight by the Company’s Board of Directors;

· Changes in the trend of the volume and severity of past due and classified loans, including trends in the volume of non-accrual loans, troubled debt restructurings and other loan modifications;

· The existence and effect of any concentrations of credit and changes in the level of such concentrations;

· The effect of external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the Company’s current loan portfolio; and

· Analysis of customers’ credit quality, including knowledge of their operating environment and financial condition.

Management evaluates the ALLL based on the combined total of the impaired and general components. Generally, when the loan portfolio increases, absent other factors, the ALLL methodology results in a higher dollar amount of estimated probable losses. Conversely, when the loan portfolio decreases, absent other factors, the ALLL methodology results in a lower dollar amount of estimated probable losses.

Each quarter, management evaluates the ALLL and adjusts the ALLL as appropriate through a provision for loan losses. While the Company uses the best information available to make evaluations, future adjustments to the ALLL may be necessary if conditions differ substantially from the information used in making the evaluations. In addition, as an integral part of its examination process, the OCC periodically reviews the Company’s ALLL. The OCC may require the Company to adjust the ALLL based on its analysis of information available to it at the time of its examination.

The following table sets forth activity in the ALLL, by loan category, for the three months ended March 31, 2013 and 2012.

	Real Estate
(in thousands)	Residential Real Esate			Commercial Real Estate			Construction, Land Acquisition and Development			Commercial and Industrial			Consumer			State and Political Subdivisions			Total
Three months ended March 31, 2013:
Allowance for loan losses:

Beginning balance, January 1, 2013	$	1,764		$	8,062		$	2,162		$	4,167		$	1,708		$	673		$	18,536
Charge-offs	(159		)	(48		)	(110		)	(45		)	(194		)	—			(556		)
Recoveries	8			45			5			1,516			143			—			1,717
Provisions (credits)	271			823			(381		)	(2,033		)	82			14			(1,224		)
Ending balance, March 31, 2013	$	1,884		$	8,882		$	1,676		$	3,605		$	1,739		$	687		$	18,473

Three months ended March 31, 2012:
Allowance for loan losses:

Beginning balance, January 1, 2012	$	1,823		$	11,151		$	2,590		$	3,292		$	1,526		$	452		$	20,834
Charge-offs	(312		)	(154		)	—			(49		)	(79		)	—			(594		)
Recoveries	19			317			21			125			78			—			560
Provisions (credits)	269			(573		)	234			37			(68		)	(35		)	(136		)
Ending balance, March 31, 2012	$	1,799		$	10,741		$	2,845		$	3,405		$	1,457		$	417		$	20,664

The following table represents the allocation of the allowance for loan losses and the related loan by loan portfolio segment disaggregated based on the impairment methodology at March 31, 2013 and December 31, 2012:

	Real Estate
(in thousands)	Residential Real Esate		Commercial Real Estate		Construction, Land Acquisition and Development		Commercial and Industrial		Consumer		State and Political Subdivisions		Total
March 31, 2013
Allowance for loan losses:
Individually evaluated for impairment	$	26	$	408	$	84	$	—	$	—	$	—	$	518
Collectively evaluated for impairment	1,858		8,474		1,592		3,605		1,739		687		17,955
Total	$	1,884	$	8,882	$	1,676	$	3,605	$	1,739	$	687	$	18,473

Loans receivable:
Individually evaluated for impairment	$	2,158	$	10,857	$	943	$	—	$	—	$	—	$	13,958
Collectively evaluated for impairment	96,115		237,598		21,420		112,176		109,378		25,278		601,965
Total	$	98,273	$	248,455	$	22,363	$	112,176	$	109,378	$	25,278	$	615,923

December 31, 2012
Allowance for loan losses:
Individually evaluated for impairment	$	40	$	268	$	2	$	—	$	—	$	—	$	310
Collectively evaluated for impairment	1,724		7,794		2,160		4,167		1,708		673		18,226
Total	$	1,764	$	8,062	$	2,162	$	4,167	$	1,708	$	673	$	18,536

Loans receivable:
Individually evaluated for impairment	$	2,773	$	11,459	$	993	$	—	$	—	$	—	$	15,225
Collectively evaluated for impairment	87,455		220,376		31,509		110,073		109,783		23,354		582,550
Total	$	90,228	$	231,835	$	32,502	$	110,073	$	109,783	$	23,354	$	597,775

Credit Quality Indicators — Commercial Loans

The Company continuously monitors the credit quality of its commercial loans. Credit quality is monitored by reviewing certain credit quality indicators. Management has determined that credit risk ratings are the key credit quality indicator that best help management monitor the credit quality of the Company’s loan receivables.

The Bank’s commercial loan classification and credit grading processes are part of the lending, underwriting, and credit administration functions to ensure an ongoing assessment of credit quality. Accurate and timely loan classification or credit grading is a critical component of loan portfolio management. Loan officers are required to review their loan portfolio risk ratings regularly for accuracy. The loan review function uses the same risk rating system in the loan review process. This allows an independent third party to assess the quality of the portfolio and compare the accuracy of ratings with the loan officer’s and management’s assessment.

A formal loan classification and credit grading system reflects the risk of default and credit losses. A written description of the risk ratings is maintained that includes a discussion of the factors used to assign appropriate classifications of credit grades to loans. The process identifies groups of loans that warrant the special attention of management. The risk grade groupings provide a mechanism to identify risk within the loan portfolio and provide management and the Board with periodic reports by risk category. The credit risk ratings play an important role in the establishment and evaluation of the provision for loan and lease losses and the ALLL. After determining the historical loss factor which is adjusted for qualitative and environmental factors for each portfolio segment, the portfolio segment balances that have been collectively evaluated for impairment are multiplied by the general reserve loss factor for the respective portfolio segments to determine the general reserve. Loans that have an internal credit rating of special mention or substandard follow the same process; however, the qualitative and environmental factors are further adjusted for the increased risk.

The Company utilizes a loan rating system that assigns a degree of risk to commercial loans based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes these non-homogeneous loans individually by grading the loans as to credit risk and probability of collection for each type of loan. Commercial loans include commercial indirect auto loans which are not individually risk rated, and Construction, Land Acquisition and Development Loans include residential construction loans which are also not individually risk rated. These loans are monitored on a pool basis due to their homogeneous nature as described in “Credit Quality Indicators — Other Loans” below. The Company risk rates certain residential real estate loans and consumer loans that are part of a larger commercial relationship using its credit grading system. These loans are described in “Credit Quality Indicators — Commercial Loans.” The grading system contains the following basic risk categories:

1. Minimal Risk

2. Above Average Credit Quality

3. Average Risk

4. Acceptable Risk

5. Pass - Watch

6. Special Mention

7. Substandard - Accruing

8. Substandard - Non-Accrual

9. Doubtful

10. Loss

This analysis is performed on a quarterly basis using the following definitions for risk ratings:

Pass - Assets rated 1 through 5 are considered pass ratings. These assets show no current or potential problems and are considered fully collectible. All such loans are considered collectively for ALLL calculation purposes. However, accruing TDRs that have been performing for an extended period of time, do not represent a higher risk of loss, and have been upgraded to a pass rating are evaluated individually for impairment.

Special Mention — Assets classified as special mention assets do not currently expose the Company to a sufficient degree of risk to warrant an adverse classification but do possess credit deficiencies or potential weaknesses deserving close attention. Special Mention assets have a potential weakness or pose an unwarranted financial risk which, if not corrected, could weaken the asset and increase risk in the future.

Substandard - Assets classified as substandard have well defined weaknesses based on objective evidence, and are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful - Assets classified as doubtful have all of the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses present make collection or liquidation in full highly questionable and improbable based on current circumstances.

Loss - Assets classified as loss are those considered uncollectible and of such little value that their continuance as assets is not warranted.

The following tables detail the recorded investment in loans receivable by the aforementioned class of loan and credit quality indicator at March 31, 2013 and December 31, 2012.

Commercial Credit Quality Indicators

March 31, 2013

	Real Estate
(in thousands)	Residential Real Esate		Commercial Real Estate		Construction, Land Acquisition and Development		Commercial and Industrial		Consumer		State and Political Subdivisions		Total
Internal risk rating
Pass	$	18,943	$	214,785	$	13,622	$	97,101	$	2,445	$	19,962	$	366,858
Special mention	1,234		12,174		56		6,985		—		819		21,268
Substandard	1,714		21,496		7,221		2,804		171		4,497		37,903
Doubtful	—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—
Total	$	21,891	$	248,455	$	20,899	$	106,890	$	2,616	$	25,278	$	426,029

Commercial Credit Quality Indicators

December 31, 2012

	Real Estate
(in thousands)	Residential Real Esate		Commercial Real Estate		Construction, Land Acquisition and Development		Commercial and Industrial		Consumer		State and Political Subdivisions		Total
Internal risk rating
Pass	$	17,138	$	200,147	$	23,052	$	93,864	$	3,324	$	17,580	$	355,105
Special mention	564		8,587		57		7,437		—		849		17,494
Substandard	2,309		23,101		7,395		3,395		143		4,925		41,268
Doubtful	—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—
Total	$	20,011	$	231,835	$	30,504	$	104,696	$	3,467	$	23,354	$	413,867

Credit Quality Indicators — Other Loans

Residential, consumer and commercial indirect auto loans are monitored on a pool basis due to their homogeneous nature. Loans that are delinquent 90 days or more are considered to be non-accrual. The Company utilizes accruing versus non-accruing status as the credit quality indicator for these loan pools. The following table presents the recorded investment in residential, consumer and indirect auto loans based on payment activity as of March 31, 2013 and December 31, 2012.

	March 31, 2013						December 31, 2012
	Accruing		Non-Accruing				Accruing		Non-Accruing
(in thousands)	Loans		Loans		Total		Loans		Loans		Total
Construction, land acquisition and development - residential	$	1,464	$	—	$	1,464	$	1,998	$	—	$	1,998
Residential real estate	74,544		1,838		76,382		68,446		1,771		70,217
Commercial - indirect auto	5,268		18		5,286		5,377		—		5,377
Consumer	106,708		54		106,762		106,272		44		106,316
Total	$	187,984	$	1,910	$	189,894	$	182,093	$	1,815	$	183,908

Included in loans receivable are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the borrowers. The recorded investment in these non-accrual loans was $8.8 million and $9.7 million at March 31, 2013 and December 31, 2012, respectively. Included in non-accrual loans at March 31, 2013 and December 31, 2012 was one loan in the amount of $4.4 million which was 90.0% guaranteed by a United States government agency. Generally, loans are placed on non-accruing status when they become 90 days or more delinquent, and remain on non-accrual status until they are brought current, have six months of performance under the loan terms, and factors indicating reasonable doubt about the timely collection of payments no longer exist. Therefore, loans may be current in accordance with their loan terms, or may be less than 90 days delinquent and still be on a non-accrual status. Loans past due 90 days or more and still accruing interest were $0 and $57 thousand at March 31, 2013 and December 31, 2012, respectively, and consisted of loans that are well secured and are in the process of renewal.

The following tables set forth the detail, and delinquency status, of past due and non-accrual loans at March 31, 2013 and December 31, 2012:

	March 31, 2013
	Delinquency Status
(in thousands)	0-29 Days Past Due		30-59 Days Past Due		60-89 Days Past Due		>/= 90 Days Past Due		Total
Performing (accruing) loans
Real estate:
Residential real estate	$	94,950	$	260	$	136	$	—	$	95,346
Commercial real estate	242,848		481		—		—		243,329
Construction, land acquisition and development	21,909		—		—		—		21,909
Total real estate	359,707		741		136		—		360,584

Commercial and industrial	111,511		503		15		—		112,029

Consumer	107,487		1,329		384		—		109,200

State and political subdivisions	25,278		—		—		—		25,278

Total performing (accruing) loans	603,983		2,573		535		—		607,091

Non-accrual loans
Real estate:
Residential real estate	1,194		4		—		1,729		2,927
Commercial real estate	90		184		—		4,852		5,126
Construction, land aquisition and development	53		382		—		19		454
Total real estate	1,337		570		—		6,600		8,507

Commercial and industrial	48		5		64		30		147

Consumer	95		9		6		68		178

State and political subdivisions	—		—		—		—		—

Total non-accrual loans	1,480		584		70		6,698		8,832

Total loans receivable	$	605,463	$	3,157	$	605	$	6,698	$	615,923

Performing and Non-Performing Loan Delinquency Status

	December 31, 2012
	Delinquency Status
(in thousands)	0-29 Days Past Due		30-59 Days Past Due		60-89 Days Past Due		>/= 90 Days Past Due		Total
Performing (accruing) loans
Real estate:
Residential real estate	$	86,301	$	422	$	31	$	30	$	86,784
Commercial real estate	226,344		194		—		—		226,538
Construction, land acquisition and development	31,899		29		—		—		$	31,928
Total real estate	344,544		645		31		30		345,250

Commercial and industrial	109,312		517		20		27		109,876

Consumer	107,821		1,489		333		—		109,643

State and political subdivisions	23,354		—		—		—		23,354

Total performing (accruing) loans	585,031		2,651		384		57		588,123

Non-accrual loans
Real estate:
Residential real estate	953		105		230		2,156		3,444
Commercial real estate	250		121		4,352		574		5,297
Construction, land acquisition and development	446		—		—		128		574
Total real estate	1,649		226		4,582		2,858		9,315

Commercial and industrial	61		30		11		95		197

Consumer	2		—		2		136		140

State and political subdivisions	—		—		—		—		—

Total non-accrual loans	1,712		256		4,595		3,089		9,652

Total loans receivable	$	586,743	$	2,907	$	4,979	$	3,146	$	597,775

The total recorded investment in impaired loans, which consists of non-accrual loans with an aggregate loan relationship of greater than $100,000 and performing TDRs, amounted to $14.0 million and $15.2 million at March 31, 2013 and December 31, 2012, respectively. The related allowance on impaired loans was $0.5 million and $0.3 million as of March 31, 2013 and December 31, 2012, respectively.

The following tables provide a distribution of the recorded investment, unpaid principal balance and the related allowance for the Company’s impaired loans, which have been analyzed for impairment under ASC 310, at March 31, 2013 and December 31, 2012. Non-accrual loans other than TDRs, with individual balances less than $100 thousand are not evaluated individually for impairment and are accordingly not included in the following tables. However, these loans are evaluated collectively for impairment as homogenous pools in the general allowance under ASC 450. Total non-accrual loans, other than TDRs, with individual balances less than $100 thousand that were evaluated under ASC 450 amounted to $1.7 million at March 31, 2013 and $1.9 million at December 31, 2012, respectively.

Impaired Loans

	March 31, 2013
(in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no allowance recorded:
Real estate
Residential real estate	$	1,264	$	1,376	$	—
Commercial real estate	4,735		5,012		—
Construction, land acquisition & development	—		—		—
Total real estate	5,999		6,388		—

Commercial and industrial	—		—		—

Consumer	—		—		—

State and political subdivisions	—		—		—
Total impaired loans with no allowance recorded	5,999		6,388		—

With a related allowance recorded:
Real estate
Residential real estate	894		919		26
Commercial real estate	6,122		6,122		408
Construction, land acquisition & development	943		1,044		84
Total real estate	7,959		8,085		518

Commercial and industrial	—		—		—

Consumer	—		—		—

State and political subdivisions	—		—		—
Total impaired loans with a related allowance recorded	7,959		8,085		518

Total impaired loans
Real estate
Residential real estate	2,158		2,295		26
Commercial real estate	10,857		11,134		408
Construction, land acquisition & development	943		1,044		84
Total real estate	13,958		14,473		518

Commercial and industrial	—		—		—

Consumer	—		—		—

State and political subdivisions	—		—		—

Total impaired loans	$	13,958	$	14,473	$	518

Impaired Loans

	December 31, 2012
(in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no allowance recorded:
Real estate:
Residential real estate	$	1,275	$	1,378	$	—
Commercial real estate	389		665		—
Construction, land acquisition & development	709		804		—
Total real estate	2,373		2,847		—

Commercial and industrial	—		—		—

Consumer	—		—		—

State and political subdivisions	—		—		—
Total impaired loans with no allowance recorded	2,373		2,847		—

With a related allowance recorded:
Real estate:
Residential real estate	1,498		1,512		40
Commercial real estate	11,069		11,069		268
Construction, land acquisition & development	285		285		2
Total real estate	12,852		12,866		310

Commercial and industrial	—		—		—

Consumer	—		—		—

State and political subdivisions	—		—		—
Total impaired loans with a related allowance recorded	12,852		12,866		310

Total impaired loans:
Real estate:
Residential real estate	2,773		2,890		40
Commercial real estate	11,459		11,734		268
Construction, land acquisition & development	993		1,088		2
Total real estate	15,225		15,712		310

Commercial and industrial	—		—		—

Consumer	—		—		—

State and political subdivisions	—		—		—
Total impaired loans	$	15,225	$	15,712	$	310

The following table presents by loan portfolio class, the average balance and interest income recognized on impaired loans for the three months ended March 31, 2013 and 2012:

	Three Months Ended March 31,
	2013				2012
(in thousands)	Average Balance		Interest Income (1)		Average Balance		Interest Income (1)
Residential real estate	$	2,168	$	2	$	2,834	$	3
Commercial real estate	10,875		93		12,873		70
Construction, land acquisition & development	1,013		9		2,734		12
Total real estate	14,056		104		18,441		85

Commercial and industrial	—		—		3,806		—

Consumer	—		—		31		—

State and political subdivisions	—		—		—		—

Total impaired loans	$	14,056	$	104	$	22,278	$	85

(1) Interest income represents income recognized on performing TDRs.

The additional interest income that would have been earned on non-accrual and restructured loans for the quarter ended on March 31, 2013 and 2012 in accordance with their original terms approximated $200 thousand and $405 thousand, respectively.

Troubled Debt Restructured Loans

TDRs at March 31, 2013 and December 31, 2012 were $8.2 million and $8.9 million, respectively. Accruing and non-accruing TDRs were $6.8 million and $1.4 million, respectively at March 31, 2013 and $7.5 million and $1.4 million, respectively at December 31, 2012. Approximately $505 thousand and $257 thousand in specific reserves have been established for these loans as of March 31, 2013 and December 31, 2012, respectively.

The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan, an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk, or a permanent reduction of the recorded investment in the loan.

The following tables show the pre- and post- modification recorded investment in loans modified as TDRs by portfolio segment and class of financing receivable during the three months ended March 31, 2013 and 2012:

	Three Months Ended March 31, 2013					Three Months Ended March 31, 2012
(in thousands)	Number of Contracts	Pre-Modification Outstanding Recorded Investments		Post-Modification Outstanding Recorded Investments		Number of Contracts	Pre-Modification Outstanding Recorded Investments		Post-Modification Outstanding Recorded Investments
Troubled Debt Restructuring:
Residential real estate	—	$	—	$	—	—	$	—	$	—
Commercial real estate	1	477		477		—	—		—
Construction, land acquisition and development	—	—		—		1	39		39
Commercial and industrial	—	—		—		—	—		—
Total new troubled debt restructurings	1	$	477	$	477	1	$	39	$	39

The one loan modified as a TDR during the three months ended March 31, 2013 increased the ALLL by $1 thousand at March 31, 2013. There was no effect on the ALLL at March 31, 2012 with respect to loans modified as TDRs during the three months ended March 31, 2012.

The following table shows the types of modifications made during the three months ended March 31, 2013 and 2012:

	Three months ended March 31, 2013								Three months ended March 31, 2012
					Construction,								Construction,
					Land Acquistion								Land Acquisition
	Residential		Commercial		and				Residential		Commercial		and
(in thousands)	Real Estate		Real Estate		Development		Total		Real Estate		Real Estate		Development		Total
Type of modification
Extension of term	$	—	$	—	$	—	$	—	$	—	$	—	$	39	$	39
Principal forebearance	—		477		—		477		—		—		—		—
Total TDRs	$	—	$	477	$	—	$	477	$	—	$	—	$	39	$	39

There were no TDRs which re-defaulted (defined as past due 90 days) during the three months ended March 31, 2013 and 2012 and for which the payment re-default occurred within one year of the modification.