Loans

12 Months Ended

Dec. 31, 2012

Loans [Abstract]

Loans

Note 3 — Loans

At December 31, 2012 and 2011, loans included the following: (in thousands)

	December 31,			December 31,
	2012			2011
Commercial and industrial	$	168,709		$	206,652
Commercial real estate		369,271			428,646
Real estate construction		15,469			49,704
Residential mortgages (1st and 2nd liens)		146,575			160,619
Home equity		66,468			79,684
Consumer and other loans		14,288			44,349
Gross Loans		780,780			969,654
Allowance for loan losses		(17,781	)		(39,958	)
Net loans at end of period	$	762,999		$	929,696

The Bank's real estate loans and loan commitments are primarily for properties located throughout Long Island, New York.  Repayment of these loans is dependent in part upon the overall economic health of the Company's market area and current real estate values.  The Bank considers the credit circumstances, the nature of the project and loan to value ratios for all real estate loans.

The Company makes loans to its directors and executives, as well as to other related parties in the ordinary course of its business. Loans made to directors and executives, either directly or indirectly, which exceed $60 thousand in aggregate for any one director or executive, totaled $9 million and $10 million at December 31, 2012 and 2011, respectively. Unused portions of lines of credit to such directors and executives, directly or indirectly, totaled $12 million and $16 million at December 31, 2012 and 2011, respectively. For such directors and executives, new loans totaling $44 million and $36 million were granted and payments of $44 million and $38 million were received during 2012 and 2011, respectively.