7. Loans

The loan portfolio of the Company consists of the following (in thousands):


	June 30, 2013		December 31, 2012
Commercial	$	116,153	$	102,822
Commercial loans secured by real estate		390,044		383,339
Real estate - mortgage		221,736		217,584
Consumer		16,964		17,420
Loans, net of unearned income	$	744,897	$	721,165

Loan balances at June 30, 2013 and December 31, 2012 are net of unearned income of $619,000 and $637,000, respectively. Real estate-construction loans comprised 2.6%, and 2.0% of total loans, net of unearned income, at June 30, 2013 and December 31, 2012, respectively. The Company has no exposure to subprime mortgage loans in the loan portfolio.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

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