Loans and Leases

Summary of Major Loan and Lease Categories



	At December 31,
(Dollars in thousands)	2014			2013
Commercial, financial and agricultural	$	457,827		$	422,816
Real estate-commercial	628,478			600,353
Real estate-construction	79,887			90,493
Real estate-residential secured for business purpose	36,932			37,319
Real estate-residential secured for personal purpose	166,850			149,164
Real estate-home equity secured for personal purpose	108,250			95,345
Loans to individuals	29,941			40,000
Lease financings	118,460			105,994
Total loans and leases held for investment, net of deferred income	$	1,626,625		$	1,541,484

Unearned lease income, included in the above table	$	(14,131	)	$	(14,439	)
Net deferred costs, included in the above table	3,218			2,744
Overdraft deposits included in the above table	50			62

Overdraft deposits are re-classified as loans and are included in the total loans and leases on the balance sheet.

The Corporation is a lessor of primarily equipment under agreements expiring at various dates through the year 2021.
At December 31, 2014 and 2013, the schedule of minimum lease payments receivable is as follows:



	At December 31,
(Dollars in thousands)	2014			2013
Within 1 year	$	50,340		$	43,911
After 1 year through 2 years	38,084			33,302
After 2 years through 3 years	25,888			23,723
After 3 years through 4 years	13,667			14,335
After 4 years through 5 years	4,312			4,983
Thereafter	300			179
Total future minimum lease payments receivable	132,591			120,433
Less: Unearned income	(14,131		)	(14,439		)
Total lease financing receivables, net of unearned income	$	118,460		$	105,994

Age Analysis of Past Due Loans and Leases

The following presents, by class of loans and leases, an aging of past due loans and leases, loans and leases which are current and the recorded investment in loans and leases 90 days or more past due which are accruing interest at December 31, 2014 and 2013:



(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or more Past Due		Total Past Due		Current		Total Loans and Leases Held for Investment		Recorded Investment 90 Days or more Past Due and Accruing Interest
At December 31, 2014
Commercial, financial and agricultural	$	145	$	747	$	2,567	$	3,459	$	454,368	$	457,827	$	—
Real estate—commercial real estate and construction:
Commercial real estate	361		913		1,163		2,437		626,041		628,478		—
Construction	—		405		5,525		5,930		73,957		79,887		—
Real estate—residential and home equity:
Residential secured for business purpose	167		56		713		936		35,996		36,932		—
Residential secured for personal purpose	409		604		60		1,073		165,777		166,850		—
Home equity secured for personal purpose	348		—		215		563		107,687		108,250		31
Loans to individuals	365		65		365		795		29,146		29,941		365
Lease financings	1,610		406		435		2,451		116,009		118,460		55
Total	$	3,405	$	3,196	$	11,043	$	17,644	$	1,608,981	$	1,626,625	$	451

At December 31, 2013
Commercial, financial and agricultural	$	386	$	922	$	2,904	$	4,212	$	418,604	$	422,816	$	12
Real estate—commercial real estate and construction:
Commercial real estate	148		262		4,932		5,342		595,011		600,353		—
Construction	—		—		8,742		8,742		81,751		90,493		—
Real estate—residential and home equity:
Residential secured for business purpose	87		276		161		524		36,795		37,319		—
Residential secured for personal purpose	1,370		—		617		1,987		147,177		149,164		—
Home equity secured for personal purpose	278		97		100		475		94,870		95,345		23
Loans to individuals	445		193		319		957		39,043		40,000		319
Lease financings	2,182		455		389		3,026		102,968		105,994		59
Total	$	4,896	$	2,205	$	18,164	$	25,265	$	1,516,219	$	1,541,484	$	413

Non-Performing Loans and Leases

The following presents, by class of loans and leases, non-performing loans and leases at December 31, 2014 and 2013:



	At December 31,
	2014								2013
(Dollars in thousands)	Nonaccrual Loans and Leases*		Accruing Troubled Debt Restructured Loans and Lease Modifications		Loans and Leases 90 Days or more Past Due and Accruing Interest		Total Non- Performing Loans and Leases		Nonaccrual Loans and Leases*		Accruing Troubled Debt Restructured Loans and Lease Modifications		Loans and Leases 90 Days or more Past Due and Accruing Interest		Total Non- Performing Loans and Leases
Commercial, financial and agricultural	$	5,002	$	2,851	$	—	$	7,853	$	4,253	$	1,329	$	12	$	5,594
Real estate—commercial real estate and construction:
Commercial real estate	4,413		2,618		—		7,031		8,091		4,271		—		12,362
Construction	5,931		—		—		5,931		9,159		2,307		—		11,466
Real estate—residential and home equity:
Residential secured for business purpose	915		—		—		915		224		—		—		224
Residential secured for personal purpose	512		—		—		512		1,101		—		—		1,101
Home equity secured for personal purpose	184		—		31		215		77		—		23		100
Loans to individuals	—		—		365		365		—		36		319		355
Lease financings	380		—		55		435		330		—		59		389
Total	$	17,337	$	5,469	$	451	$	23,257	$	23,235	$	7,943	$	413	$	31,591

* Includes nonaccrual troubled debt restructured loans and lease modifications of $3.1 million and $1.6 million at December 31, 2014 and December 31, 2013, respectively.

Credit Quality Indicators

The following tables present by class, the recorded investment in loans and leases held for investment by credit quality indicator at December 31, 2014 and 2013.

The Corporation employs a ten (10) grade risk rating system related to the credit quality of commercial loans and residential real estate loans secured for a business purpose of which the first six categories are pass categories (credits not adversely rated). The following is a description of the internal risk ratings and the likelihood of loss related to each risk rating. Loans with risk ratings of one through five are reviewed based on the relationship dollar amount with the borrower: loans with a relationship total of $2.5 million or greater are reviewed quarterly; loans with a relationship balance of less than $2.5 million but greater than $500 thousand are reviewed annually based on the borrower’s fiscal year; loans with a relationship balance of less than $500 thousand are reviewed only if the loan becomes 60 days or more past due. Loans with risk ratings of six are also reviewed based on the relationship dollar amount with the borrower: loans with a relationship balance of $2.0 million or greater are reviewed quarterly; loans with a relationship balance of less than $2.0 million but greater than $500 thousand are reviewed annually; loans with a relationship balance of less than $500 thousand are reviewed only if the loan becomes 60 days or more past due. Loans with risk ratings of seven are reviewed at least quarterly, and as often as monthly, at management’s discretion. Loans with risk ratings of eight through ten are reviewed monthly.


1.	Cash Secured—No credit risk


2.	Fully Secured—Negligible credit risk


3.	Strong—Minimal credit risk


4.	Satisfactory—Nominal credit risk


5.	Acceptable—Moderate credit risk


6.	Pre-Watch—Marginal, but stable credit risk


7.	Special Mention—Potential weakness


8.	Substandard—Well-defined weakness


9.	Doubtful—Collection in-full improbable


10.	Loss—Considered uncollectible

Commercial Credit Exposure Credit Risk by Internally Assigned Grades



(Dollars in thousands)	Commercial, Financial and Agricultural		Real Estate— Commercial		Real Estate— Construction		Real Estate— Residential Secured for Business Purpose		Total
At December 31, 2014
Grade:
1. Cash secured/ 2. Fully secured	$	4,248	$	—	$	1,262	$	—	$	5,510
3. Strong	14,013		8,504		3,897		—		26,414
4. Satisfactory	23,931		30,587		8,731		339		63,588
5. Acceptable	301,425		402,719		55,111		24,535		783,790
6. Pre-watch	65,993		123,129		4,956		5,384		199,462
7. Special Mention	7,166		17,505		—		1,304		25,975
8. Substandard	41,051		46,034		5,930		5,370		98,385
9. Doubtful	—		—		—		—		—
10.Loss	—		—		—		—		—
Total	$	457,827	$	628,478	$	79,887	$	36,932	$	1,203,124

At December 31, 2013
Grade:
1. Cash secured/ 2. Fully secured	4,763		2,014		1,682		—		8,459
3. Strong	6,051		8,515		4,300		—		18,866
4. Satisfactory	34,650		17,758		1,500		261		54,169
5. Acceptable	251,203		384,061		54,464		26,694		716,422
6. Pre-watch	84,201		113,181		16,084		5,884		219,350
7. Special Mention	10,095		19,445		—		1,841		31,381
8. Substandard	31,508		55,331		12,463		2,639		101,941
9. Doubtful	345		48		—		—		393
10.Loss	—		—		—		—		—
Total	$	422,816	$	600,353	$	90,493	$	37,319	$	1,150,981

Credit Exposure—Real Estate—Residential Secured for Personal Purpose, Real Estate—Home Equity Secured for Personal Purpose, Loans to Individuals, Lease Financing Credit Risk Profile by Payment Activity

The Corporation monitors the credit risk profile by payment activity for the following classifications of loans and leases: residential real estate loans secured for a personal purpose, home equity loans secured for a personal purpose, loans to individuals and lease financings. Nonperforming loans and leases are loans past due 90 days or more, loans and leases on nonaccrual of interest and troubled debt restructured loans and lease modifications. Performing loans and leases are reviewed only if the loan becomes 60 days or more past due. Nonperforming loans and leases are reviewed monthly. Performing loans and leases have a nominal to moderate risk of loss. Nonperforming loans and leases are loans or leases with a well-defined weakness and where collection in-full is improbable.



(Dollars in thousands)	Real Estate— Residential Secured for Personal Purpose		Real Estate— Home Equity Secured for Personal Purpose		Loans to Individuals		Lease Financing		Total
At December 31, 2014
Performing	$	166,338	$	108,035	$	29,576	$	118,025	$	421,974
Nonperforming	512		215		365		435		1,527
Total	$	166,850	$	108,250	$	29,941	$	118,460	$	423,501

At December 31, 2013
Performing	$	148,063	$	95,245	$	39,645	$	105,605	$	388,558
Nonperforming	1,101		100		355		389		1,945
Total	$	149,164	$	95,345	$	40,000	$	105,994	$	390,503

Risks associated with lending activities include, among other things, the impact of changes in interest rates and economic conditions, which may adversely impact the ability of borrowers to repay outstanding loans, and impact the value of the associated collateral.

Commercial, financial and agricultural loans, commercial real estate loans, construction loans and residential real estate loans with a business purpose are generally perceived as having more risk of default than residential real estate loans with a personal purpose and consumer loans. These types of loans involve larger loan balances to a single borrower or groups of related borrowers. Commercial real estate loans may be affected to a greater extent than residential loans by adverse conditions in real estate markets or the economy because commercial real estate borrowers’ ability to repay their loans depends on successful development of their properties and factors affecting residential real estate borrowers.

Commercial, financial and agricultural business loans are typically based on the borrowers’ ability to repay the loans from the cash flow of their businesses. These loans may involve greater risk because the availability of funds to repay each loan depends substantially on the success of the business itself. In addition, the collateral securing the loans often depreciates over time, is difficult to appraise and liquidate and fluctuates in value based on the success of the business.

Risk of loss on a construction loan depends largely upon whether our initial estimate of the property’s value at completion of construction equals or exceeds the cost of the property construction (including interest). During the construction phase, a number of factors can result in delays and cost overruns. If estimates of value are inaccurate or if actual construction costs exceed estimates, the value of the property securing the loan may be insufficient to ensure full repayment when completed through a permanent loan or by seizure of collateral. Included in real estate-construction is track development financing. Risk factors related to track development financing include the demand for residential housing and the real estate valuation market. When projects move slower than anticipated, the properties may have significantly lower values than when the original underwriting was completed, resulting in lower collateral values to support the loan. Extended time frames also cause the interest carrying cost for a project to be higher than the builder projected, negatively impacting the builder’s profit and cash flow and, therefore, their ability to make principal and interest payments.

Commercial real estate loans and residential real estate loans with a business purpose secured by owner-occupied properties are dependent upon the successful operation of the borrower’s business. If the operating company suffers difficulties in terms of sales volume and/or profitability, the borrower’s ability to repay the loan may be impaired. Loans secured by properties where repayment is dependent upon payment of rent by third party tenants or the sale of the property may be impacted by loss of tenants, lower lease rates needed to attract new tenants or the inability to sell a completed project in a timely fashion and at a profit.

Commercial, financial and agricultural loans, commercial real estate loans, construction loans and residential real estate loans secured for a business purpose are more susceptible to a risk of loss during a downturn in the business cycle. The Corporation has strict underwriting, review, and monitoring procedures in place, however, these procedures cannot eliminate all of the risks related to these loans.

The Corporation focuses on both assessing the borrower’s capacity and willingness to repay and on obtaining sufficient collateral. Commercial, financial and agricultural loans are generally secured by the borrower’s assets and by personal guarantees. Commercial real estate and residential real estate loans secured for a business purpose are originated primarily within the Southeastern Pennsylvania market area at conservative loan-to-value ratios and often with a guarantee of the borrowers. Management closely monitors the composition and quality of the total commercial loan portfolio to ensure that any credit concentrations by borrower or industry are closely monitored.

The Corporation originates fixed-rate and adjustable-rate real estate-residential mortgage loans that are secured by the underlying 1- to 4-family residential properties for personal purposes. Credit risk exposure in this area of lending is minimized by the evaluation of the credit worthiness of the borrower, including debt-to-equity ratios, credit scores and adherence to underwriting policies that emphasize conservative loan-to-value ratios of generally no more than 80%. Residential mortgage loans granted in excess of the 80% loan-to-value ratio criterion are generally insured by private mortgage insurance.

In the real estate-home equity loan portfolio secured for a personal purpose, credit exposure is minimized by the evaluation of the creditworthiness of the borrower, including debt-to-equity ratios, credit scores and adherence to the Corporation’s underwriting policies. Combined loan-to-value ratios are generally limited to 80%, but increased to 85% for the Corporation’s strongest profile borrower. Other credit considerations and compensating factors may warrant higher combined loan-to-value ratios.

Credit risk for direct consumer loans is controlled by strict adherence to conservative underwriting standards that consider debt-to-income levels and the creditworthiness of the borrower and, if secured, collateral values. These loans are included within the portfolio of loans to individuals.

The primary risks that are involved with lease financing receivables are credit underwriting and borrower industry concentrations. The Corporation has strict underwriting, review, and monitoring procedures in place to mitigate this risk. Risk also lies in the residual value of the underlying equipment. Residual values are subject to judgments as to the value of the underlying equipment that can be affected by changes in economic and market conditions and the financial viability of the residual guarantors and insurers. To the extent not guaranteed or assumed by a third party, or otherwise insured against, the Corporation bears the risk of ownership of the leased assets. This includes the risk that the actual value of the leased assets at the end of the lease term will be less than the residual value. The Corporation greatly reduces this risk primarily by using $1.00 buyout leases, in which the entire cost of the leased equipment is included in the contractual payments, leaving no residual payment at the end of the lease terms.

Reserve for Loan and Lease Losses and Recorded Investment in Loans and Leases

The following presents, by portfolio segment, a summary of the activity in the reserve for loan and lease losses for the years ended December 31, 2014, 2013 and 2012:



(Dollars in thousands)	Commercial, Financial and Agricultural			Real Estate— Commercial and Construction			Real Estate— Residential Secured for Business Purpose			Real Estate— Residential and Home Equity Secured for Personal Purpose			Loans to Individuals			Lease Financings			Unallocated			Total
For the Year Ended December 31, 2014
Reserve for loan and lease losses:
Beginning balance	$	9,789		$	8,780		$	1,062		$	1,284		$	694		$	1,285		$	1,600		$	24,494
Charge-offs	(2,834		)	(4,363		)	(140		)	(141		)	(796		)	(576		)	N/A			(8,850		)
Recoveries	247			524			60			34			265			281			N/A			1,411
Provision (recovery of provision)	(282		)	4,002			(219		)	(53		)	197			(5		)	(33		)	3,607
Ending balance	$	6,920		$	8,943		$	763		$	1,124		$	360		$	985		$	1,567		$	20,662

For the Year Ended December 31, 2013
Reserve for loan and lease losses:
Beginning balance	$	11,594		$	7,507		$	639		$	980		$	679		$	1,326		$	2,021		$	24,746
Charge-offs	(3,213		)	(8,667		)	(112		)	(195		)	(641		)	(791		)	N/A			(13,619		)
Recoveries	320			1,104			13			13			174			515			N/A			2,139
Provision (recovery of provision)	1,088			8,836			522			486			482			235			(421		)	11,228
Ending balance	$	9,789		$	8,780		$	1,062		$	1,284		$	694		$	1,285		$	1,600		$	24,494

For the Year Ended December 31, 2012
Reserve for loan and lease losses:
Beginning balance	$	11,262		$	13,317		$	823		$	735		$	730		$	1,344		$	1,659		$	29,870
Charge-offs *	(9,974		)	(4,803		)	—			(156		)	(578		)	(1,224		)	N/A			(16,735		)
Recoveries	484			334			60			7			130			561			N/A			1,576
Provision (recovery of provision)	9,822			(1,341		)	(244		)	394			397			645			362			10,035
Ending balance	$	11,594		$	7,507		$	639		$	980		$	679		$	1,326		$	2,021		$	24,746

* Includes charge-offs of $1.3 million on commercial real estate loans which were subsequently transferred to loans held for sale in 2012 and sold during 2012.

N/A – Not applicable

The following presents, by portfolio segment, the balance in the reserve for loan and lease losses disaggregated on the basis of impairment method and the recorded investment in loans and leases disaggregated on the basis of impairment method at December 31, 2014 and 2013:



(Dollars in thousands)	Commercial, Financial and Agricultural		Real Estate— Commercial and Construction		Real Estate— Residential Secured for Business Purpose		Real Estate— Residential and Home Equity Secured for Personal Purpose		Loans to Individuals		Lease Financings		Unallocated		Total
At December 31, 2014

Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	$	920	$	78	$	—	$	—	$	—	$	—	N/A		$	998
Ending balance: collectively evaluated for impairment	6,000		8,865		763		1,124		360		985		1,567		19,664
Total ending balance	$	6,920	$	8,943	$	763	$	1,124	$	360	$	985	$	1,567	$	20,662

Loans and leases held for investment:
Ending balance: individually evaluated for impairment	$	16,561	$	35,926	$	3,008	$	696	$	—	$	—			$	56,191
Ending balance: collectively evaluated for impairment	441,266		672,439		33,924		274,404		29,941		118,460				1,570,434
Total ending balance	$	457,827	$	708,365	$	36,932	$	275,100	$	29,941	$	118,460			$	1,626,625

At December 31, 2013

Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	$	2,398	$	—	$	501	$	64	$	—	$	—	N/A		$	2,963
Ending balance: collectively evaluated for impairment	7,391		8,780		561		1,220		694		1,285		1,600		21,531
Total ending balance	$	9,789	$	8,780	$	1,062	$	1,284	$	694	$	1,285	$	1,600	$	24,494

Loans and leases held for investment:
Ending balance: individually evaluated for impairment	$	14,105	$	41,240	$	1,774	$	1,178	$	36	$	—			$	58,333
Ending balance: collectively evaluated for impairment	408,711		649,606		35,545		243,331		39,964		105,994				1,483,151
Total ending balance	$	422,816	$	690,846	$	37,319	$	244,509	$	40,000	$	105,994			$	1,541,484

N/A – Not applicable

Impaired Loans

The following presents, by class of loans, the recorded investment and unpaid principal balance of impaired loans, the amounts of the impaired loans for which there is not an allowance for credit losses and the amounts for which there is an allowance for credit losses at December 31, 2014 and 2013:



	At December 31,
	2014						2013
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired loans with no related allowance recorded:
Commercial, financial and agricultural	$	12,628	$	13,050			$	10,890	$	11,749
Real estate—commercial real estate	29,779		30,810				28,883		35,700
Real estate—construction	5,931		6,474				12,357		14,540
Real estate—residential secured for business purpose	3,008		3,044				224		235
Real estate—residential secured for personal purpose	512		547				131		131
Real estate—home equity secured for personal purpose	184		184				77		77
Loans to individuals	—		—				36		54
Total impaired loans with no related allowance recorded	$	52,042	$	54,109			$	52,598	$	62,486

Impaired loans with an allowance recorded:
Commercial, financial and agricultural	$	3,933	$	3,935	$	920	$	3,215	$	3,272	$	2,398
Real estate—commercial real estate	216		216		78		—		—		—
Real estate—residential secured for business purpose	—		—		—		1,550		1,550		501
Real estate—residential secured for personal purpose	—		—		—		970		976		64
Total impaired loans with an allowance recorded	$	4,149	$	4,151	$	998	$	5,735	$	5,798	$	2,963

Total impaired loans:
Commercial, financial and agricultural	$	16,561	$	16,985	$	920	$	14,105	$	15,021	$	2,398
Real estate—commercial real estate	29,995		31,026		78		28,883		35,700		—
Real estate—construction	5,931		6,474		—		12,357		14,540		—
Real estate—residential secured for business purpose	3,008		3,044		—		1,774		1,785		501
Real estate—residential secured for personal purpose	512		547		—		1,101		1,107		64
Real estate—home equity secured for personal purpose	184		184		—		77		77		—
Loans to individuals	—		—		—		36		54		—
Total impaired loans	$	56,191	$	58,260	$	998	$	58,333	$	68,284	$	2,963

Impaired loans includes nonaccrual loans and leases, accruing troubled debt restructured loans and lease modifications and other accruing impaired loans for which it is probable that not all principal and interest payments due will be collectible in accordance with the contractual terms. These loans are individually measured to determine the amount of potential impairment. The loans are reviewed for impairment based on the fair value of the collateral for collateral dependent loans and for certain loans based on discounted cash flows using the loans’ initial effective interest rates. Impaired loans included other accruing impaired loans of $33.8 million and $27.5 million at December 31, 2014 and 2013, respectively. Specific reserves on other accruing impaired loans were $476 thousand and $1.6 million at December 31, 2014 and 2013, respectively.

The following presents by class of loans, the average recorded investment in impaired loans and an analysis of interest on impaired loans. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. Therefore, interest income on accruing impaired loans is recognized using the accrual method.



	For the Years Ended December 31,
	2014						2013						2012
(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized*		Additional Interest Income That Would Have Been Recognized Under Original Terms		Average Recorded Investment		Interest Income Recognized*		Additional Interest Income That Would Have Been Recognized Under Original Terms		Average Recorded Investment		Interest Income Recognized*		Additional Interest Income That Would Have Been Recognized Under Original Terms
Commercial, financial and agricultural	$	15,334	$	540	$	258	$	6,412	$	172	$	200	$	5,189	$	82	$	288
Real estate—commercial real estate	26,662		1,143		323		25,728		837		717		20,756		348		1,086
Real estate—construction	10,412		103		463		14,621		124		680		16,207		117		763
Real estate—residential secured for business purpose	2,524		77		61		672		19		10		156		—		7
Real estate—residential secured for personal purpose	719		—		49		760		—		45		293		—		17
Real estate—home equity secured for personal purpose	106		—		10		8		—		—		2		—		—
Loans to individuals	4		—		—		40		4		—		47		5		—
Total	$	55,761	$	1,863	$	1,164	$	48,241	$	1,156	$	1,652	$	43,242	$	552	$	2,161


*	Includes interest income recognized on a cash basis for nonaccrual loans of $23 thousand, $6 thousand and $67 thousand for the years ended December 31, 2014, 2013 and 2012, respectively and interest income recognized on the accrual method for accruing impaired loans of $1.8 million, $1.2 million and $485 thousand for the years ended December 31, 2014, 2013 and 2012, respectively.

Any income accrued on one-to-four family residential properties after the loan becomes 90 days past due, which is not placed on non-accrual, is held in a reserve for uncollected interest. The reserve for uncollected interest was $1 thousand and $21 thousand at December 31, 2014 and 2013, respectively.

The Bank maintains a reserve in other liabilities for off-balance sheet credit exposures that currently are unfunded. The reserve for these off-balance sheet credits was $338 thousand and $319 thousand at December 31, 2014 and 2013, respectively.

Troubled Debt Restructured Loans

The following presents, by class of loans, information regarding accruing and nonaccrual loans that were restructured during the years ended December 31, 2014 and 2013:



	For the Years Ended December 31,
	2014							2013
(Dollars in thousands)	Number of Loans	Pre- Restructuring Outstanding Recorded Investment		Post- Restructuring Outstanding Recorded Investment		Related Allowance		Number of Loans	Pre- Restructuring Outstanding Recorded Investment		Post- Restructuring Outstanding Recorded Investment		Related Allowance
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	6	$	1,824	$	1,824	$	507	2	$	1,025	$	1,025	$	—
Real estate—commercial real estate	1	1,000		1,000		—		3	1,569		1,569		—
Real estate—construction	—	—		—		—		1	459		459		—
Total	7	$	2,824	$	2,824	$	507	6	$	3,053	$	3,053	$	—

Nonaccrual Troubled Debt Restructured Loans:
Real estate—commercial real estate	1	$	50	$	50	$	—	—	$	—	$	—	$	—
Real estate—residential secured for business purpose	2	688		688		—		—	—		—		—
Total	3	$	738	$	738	$	—	—	$	—	$	—	$	—

The Corporation grants concessions primarily related to extensions of interest-only payment periods and an occasional payment modification. These modifications typically are for a short-term basis up to one year. Our goal when restructuring a credit is to establish a reasonable period of time to provide cash flow relief to customers experiencing cash flow difficulties. Accruing troubled debt restructured loans are primarily comprised of loans on which interest is being accrued under the restructured terms, and the loans are current or less than ninety days past due.

The following presents, by class of loans, information regarding the types of concessions granted on accruing and nonaccrual loans that were restructured during the years ended December 31, 2014 and 2013:



	Interest Only Term Extension			Temporary Payment Reduction			Interest Rate Reduction			Maturity Date Extension			Payments Suspended			Total Concessions Granted
(Dollars in thousands)	No. of Loans	Amount		No. of Loans	Amount		No. of Loans	Amount		No. of Loans	Amount		No. of Loans	Amount		No. of Loans	Amount
For the Year Ended December 31, 2014
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	—	$	—	—	$	—	—	$	—	5	$	1,699	1	$	125	6	$	1,824
Real estate—commercial real estate	—	—		—	—		—	—		1	1,000		—	—		1	1,000
Total	—	$	—	—	$	—	—	$	—	6	$	2,699	1	$	125	7	$	2,824

Nonaccrual Troubled Debt Restructured Loans:
Real estate—commercial real estate	—	$	—	—	$	—	1	$	50	—	$	—	—	$	—	1	$	50
Real estate—residential secured for business purpose	—	—		—	—		1	55		1	633		—	—		2	688
Total	—	$	—	—	$	—	2	$	105	1	$	633	—	$	—	3	$	738

For the Year Ended December 31, 2013
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	1,000	—	$	—	—	$	—	1	$	25	—	$	—	2	$	1,025
Real estate—commercial real estate	—	—		1	756		—	—		2	813		—	—		3	1,569
Real estate—construction	—	—		—	—		—	—		1	459		—	—		1	459
Total	1	$	1,000	1	$	756	—	$	—	4	$	1,297	—	$	—	6	$	3,053

Nonaccrual Troubled Debt Restructured Loans:
Total	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—

The following presents, by class of loans, information regarding accruing and nonaccrual troubled debt restructured loans, for which there were payment defaults within twelve months of the restructuring date:



	For the Years Ended December 31,
	2014			2013
(Dollars in thousands)	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	—	$	—	1	$	1,000
Total	—	$	—	1	$	1,000
Nonaccrual Troubled Debt Restructured Loans:
Total	—	$	—	—	$	—