3.	Loans and Allowance for Loan Losses

The composition of the Company's loan portfolio (in thousands) at June 30, 2011 and December 31, 2010, consisted of the following:

	2011			2010

First mortgage conventional loans:
Secured by one-to-four-family residences	$	55,302		$	56,281
Commercial real estate		29,928			27,131
Commercial, other than real estate		12,863			12,177
Land		12,669			11,473
Consumer loans (including overdrafts of
$404 and $44)		12,085			12,156
Loans secured by deposits		5,378			6,300
Construction loans		6,665			4,464
Total		134,890			129,982

Less: Allowance for loan losses		(1,348	)		(1,286	)
Unfunded construction loan commitments		(2,088	)		(1,506	)

Loans, net	$	131,454		$	127,190

Changes in the allowance for loan losses (in thousands) for the six months ended June 30, 2011 and for the year ended December 31, 2010 are summarized as follows:

	2011			2010

Balance, beginning of period	$	1,286		$	1,001
Provision for loan losses		60			370
Recoveries		6			37
Loans charged off-net of recoveries		(4	)		(122	)
Balance, end of period	$	1,348		$	1,286

The Company charges a flat rate for the origination or assumption of a loan. These fees are designed to offset direct loan origination costs and the net amount, if material, is deferred and amortized, as required by accounting standards.

Impaired loans are considered immaterial at June 30, 2011 and December 31, 2010 and no valuation allowance has been established with respect to those loans. Total non-accrual loans (in thousands) at June 30, 2011 and December 31, 2010 were $378 and $467, respectively. Interest income (in thousands) of approximately $8 and $10 would have been recognized for the period ended June 30, 2011 and December 31, 2010, respectively, had the loans not been on non-accrual.

The Company's lending activity is concentrated within Webster Parish, Louisiana. The majority of loans extended in this lending area are for one-to-four-family dwelling units; however, the Company is expanding its lending activities to commercial real estate, commercial business and consumer loans. See above for detail. The Company requires collateral sufficient in value to cover the principal amount of the loan. Such collateral is evidenced by mortgages on property held and readily accessible to the Bank.