Loans

12 Months Ended

Dec. 31, 2012

Loans [Abstract]

Loans

Note 3 - Loans

Year-end loan and leases were as follows:

	2012			2011
Commercial	$	13,120		$	15,827
Real estate-construction		21,128			28,504
Real estate-mortgage 1-4 family		32,417			35,758
Real estate-mortgage 5+ family		27,787			35,977
Real estate-mortgage commercial		159,729			183,881
Home equity		17,365			21,266
Leases		12			295
Installment		1,291			1,476
Total loans and leases		272,849			322,984
Less:
Deferred loan fees		(52	)		(271	)
Loans and leases, net of unearned income and deferred loan fees		272,797			322,713
Allowance for loan and lease losses		(20,727	)		(18,984	)
Loans and leases, net	$	252,070		$	303,729

Average impaired loans and leases and interest recognized on them during impairment were as follows:

	2012		2011		2010
Average of impaired loans and leases during the year	$	70,124	$	90,935	$	73,591
Interest income recognized on impaired loans and leases during impairment	$	1,996	$	2,553	$	1,596

Related parties are directors, stockholders with 5% or more ownership of the Company and executive officers of the Company or Bank with their related interests. Related party loans were made on the same terms and conditions available to the public and for 2012 were as follows:

	2012
Total loans at beginning of year	$	238
New loans		1
Repayments		(17	)
Other changes		(112	)
Total loans at end of year	$	110

The Company had pledged loans with a carrying value of $27,934,000 to the Federal Home Loan Bank of Chicago and $149,000 to the Federal Reserve Bank of Chicago at December 31, 2012.

Real estate-mortgage commercial loans with a carrying value of $45,723,000 and $46,970,000 were made to borrowers in the hotel industry at December 31, 2012 and 2011, respectively.

At December 31, 2012 and 2011, there were approximately $54,887,000 and $96,132,000, respectively, of loans that had payment schedules where only interest is collected until the loans mature. Of these loans, $15,566,000 and $20,427,000 consisted of home equity loans at December 31, 2012 and 2011, respectively.

There were no loans held for sale at year-end 2012.