7. Loans

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


	September 30, 2013		December 31, 2012
Commercial	$	115,912	$	102,822
Commercial loans secured by real estate		396,740		383,339
Real estate-mortgage		231,910		217,584
Consumer		16,285		17,420
Loans, net of unearned income	$	760,847	$	721,165

Loan balances at September 30, 2013 and December 31, 2012 are net of unearned income of $612,000 and $637,000, respectively. Real estate-construction loans comprised 2.3%, and 2.0% of total loans, net of unearned income, at September 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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