Troubled Debt Restructurings:

Total troubled debt restructurings were $4.9 million and $7.0 million at September 30, 2017 and December 31, 2016, respectively. The Company has allocated $77 thousand and $101 thousand of specific reserves to customers whose loan terms have been modified in troubled debt restructurings at September 30, 2017 and December 31, 2016, respectively. There were no commitments to lend additional amounts to borrowers with loans that were classified as troubled debt restructurings at September 30, 2017 and at December 31, 2016.

During the three and nine month periods ended September 30, 2017 and 2016, 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; an extension of an interest only period; or a legal concession. During the nine month period ended September 30, 2017, the terms of such loans included a reduction of the stated interest rate of the loan in the range of 0.49% and 1.89% and extensions of the maturity dates on these and other troubled debt restructurings in the range of 6 to 132 months. During the same nine month period in 2016, the terms of such loans included a reduction of the stated interest rate of the loan by 1.2% and an extension of the maturity date by 120 months.

The following table presents loans by class modified as troubled debt restructurings that occurred during the three and nine month periods ended September 30, 2017 and 2016:

			Pre-Modification		Post-Modification
Three Months Ended September 30, 2017	Number of		Outstanding Recorded		Outstanding Recorded
(In thousands of Dollars)	Loans		Investment		Investment
Originated loans:
Residential real estate
1-4 family residential		3	$	235	$	235
Home equity lines of credit		1		61		61
Indirect		8		51		51
Total originated loans		12	$	347	$	347
Acquired loans:
Consumer		1		26		26
Total loans		13	$	373	$	373

			Pre-Modification		Post-Modification
Nine Months Ended September 30, 2017	Number of		Outstanding Recorded		Outstanding Recorded
(In Thousands of Dollars)	Loans		Investment		Investment
Originated loans:
Residential real estate
1-4 family residential		10	$	535	$	538
Home equity lines of credit		9		225		225
Indirect		22		131		131
Total originated loans		41	$	891	$	894
Acquired loans:
Residential real estate
1-4 family residential		2		24		24
Home equity lines of credit		1		57		57
Consumer		2		55		55
Total acquired loans		5	$	136	$	136
Total loans		46	$	1,027	$	1,030

			Pre-Modification		Post-Modification
Three Months Ended September 30, 2016	Number of		Outstanding Recorded		Outstanding Recorded
(In thousands of Dollars)	Loans		Investment		Investment
Originated loans:
Residential real estate
1-4 family residential		1	$	93	$	93
Indirect		7		41		41
Total originated loans		8	$	134	$	134
Acquired loans:
Residential real estate
Home equity lines of credit		1		18		18
Consumer		1		6		6
Total acquired loans		2	$	24	$	24
Total loans		10	$	158	$	158

			Pre-Modification		Post-Modification
Nine Months Ended September 30, 2016	Number of		Outstanding Recorded		Outstanding Recorded
(In Thousands of Dollars)	Loans		Investment		Investment
Originated loans:
Residential real estate
1-4 family residential		7	$	328	$	329
Indirect		20		155		155
Total originated loans		27	$	483	$	484
Acquired loans:
Residential real estate
1-4 family residential		2		68		68
Home equity lines of credit		1		18		18
Consumer		2		39		39
Total acquired loans		5	$	125	$	125
Total loans		32	$	608	$	609

There were $30 thousand and $60 thousand in charge offs and a $30 thousand and $60 thousand increase to the provision for loan losses during the three and nine month periods ended September 30, 2017, as a result of troubled debt restructurings. There were $25 thousand and $353 thousand in charge offs during the three and nine month periods ended September 30, 2016, respectively. There was a $25 thousand and a $36 thousand increase to the provision during the three and nine month period ended September 30, 2016, as a result of troubled debt restructuring.

There were no loans for which there was a payment default within twelve months following the modification of the troubled debt restructuring during the three month and nine month period ended September 30, 2017. A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms.

There were two commercial loans, one residential real estate loan and one home equity line of credit for which there was a payment default within twelve months following the modification of the troubled debt restructuring during the three month and nine month periods ended September 30, 2016. The one home equity line of credit was past due at September 30, 2016. There was no provision recorded as a result of the defaults during 2016. A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms.