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## Potential Problem Loans 

Potential problem loans represent those loans with a well-defined weakness and where information about possible credit problems of borrowers has caused management to have serious doubts about the borrower’s ability to comply with present repayment terms. Potential problem loans, which are not included in nonperforming assets, amounted to $18.5 million, or 5.0% of total loans at December 31, 2011, compared to $13.2 million, or 3.5% of total loans outstanding, net of unearned income at December 31, 2010. Continued weakness in the overall economy has adversely affected the Company’s volume of potential problem loans, and these economic conditions are expected to persist for the foreseeable future. 

The table below provides information concerning the composition of potential problem loans at December 31, 2011 and 2010, respectively. 

<img src='content_image/184707.jpg'>

At December 31, 2011, approximately $1.0 million or 4.4% of total potential problem loans were past due at least 30 but less than 90 days. 

The following table is a summary of the Company’s performing loans that were past due at least 30 days but less than 90 days as of December 31, 2011 and 2010, respectively. 

<img src='content_image/184706.jpg'>

## Deposits 

<img src='content_image/184704.jpg'>

