Troubled Debt Restructurings:

Total troubled debt restructurings were $8.6 million and $8.3 million at June 30, 2014 and December 31, 2013, respectively. The Company has allocated $274 thousand and $397 thousand of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of June 30, 2014 and December 31, 2013, respectively. There are no commitments to lend additional amounts to borrowers with loans that were classified as troubled debt restructurings at June 30, 2014. There were $16 thousand in commitments to lend additional amounts to borrowers with loans that were classified as troubled debt restructurings at December 31, 2013.

During the three and six month periods ended June 30, 2014 and 2013, the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; a deferral of principal payments; or a legal concession.

Troubled debt restructuring modifications involved a reduction of the notes stated interest rate in the range of 0.4% and 1.7%. There were also extensions of the maturity dates on these and other troubled debt restructurings in the range of 27 months to 61 months.

The following table presents loans by class modified as troubled debt restructurings that occurred during the three and six month periods ended June 30, 2014 and 2013:

			Pre-Modification		Post-Modification
Three Months Ended June 30, 2014	Number of		Outstanding Recorded		Outstanding Recorded
(In Thousands of Dollars)	Loans		Investment		Investment
Troubled Debt Restructurings:
Commercial real estate
Non-owner occupied		1	$	373	$	373
Residential real estate
1-4 family residential		5		389		405
Home equity lines of credit		1		36		36
Total		7	$	798	$	814

			Pre-Modification		Post-Modification
Six Months Ended June 30, 2014	Number of		Outstanding Recorded		Outstanding Recorded
(In Thousands of Dollars)	Loans		Investment		Investment
Troubled Debt Restructurings:
Commercial real estate
Non-owner occupied		2	$	408	$	408
Residential real estate
1-4 family residential		14		782		799
Home equity lines of credit		3		88		88
Total		19	$	1,278	$	1,295

			Pre-Modification		Post-Modification
Three Months Ended June 30, 2013	Number of		Outstanding Recorded		Outstanding Recorded
(In Thousands of Dollars)	Loans		Investment		Investment
Troubled Debt Restructurings:
Commercial real estate
Commercial		1	$	163	$	163
Residential real estate
1-4 family residential		1		8		8
Home equity lines of credit		2		25		25
Total		4	$	196	$	196

			Pre-Modification		Post-Modification
Six Months Ended June 30, 2013	Number of		Outstanding Recorded		Outstanding Recorded
(In Thousands of Dollars)	Loans		Investment		Investment
Troubled Debt Restructurings:
Commercial real estate
Owner occupied		2	$	226	$	239
Commercial		5		649		682
Residential real estate
1-4 family residential		1		8		8
Home equity lines of credit		4		158		158
Total		12	$	1,041	$	1,087

There were $32 thousands in charge offs resulting in an $11 thousand increase to the provision for loan losses during the three and six month periods ended June 30, 2014, as a result of troubled debt restructurings.

There were no charge offs or increases to the provision for loan losses during the three month period ended June 30, 2013, as a result of troubled debt restructurings. During the six month period ended June 30, 2013, there were $16 thousand in charge offs and a $3 thousand increase to the provision for loan losses as a result of the allowance adjustment due to the troubled debt restructurings described above.

There were five indirect loans and three residential real estate loans modified as troubled debt restructuring for which there were payment defaults within twelve months following the modification during the three and six month period ended June 30, 2014. Five of the eight loans were past due at June 30, 2014. There were two loans that were charged off during the three and six month period ended June 30, 2014. There was an $11 thousand decrease in the provision for losses associated with these loans for the three and six month periods ended June 30, 2014. A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms.

There were no payment defaults on loans modified as troubled debt restructuring within twelve months following the modification during the three and six month periods ended June 30, 2013.