CREDIT QUALITY ASSESSMENT

12 Months Ended

Dec. 31, 2014

Credit Quality Assessment [Abstract]

Note 5 – CREDIT QUALITY ASSESSMENT

Allowance for Loan and Lease Losses

Credit risk can vary significantly as losses, as a percentage of outstanding loans, can vary widely during economic cycles and are sensitive to changing economic conditions. The amount of loss in any particular type of loan can vary depending on the purpose of the loan and the underlying collateral securing the loan. Collateral securing commercial loans can range from accounts receivable to equipment to improved or unimproved real estate depending on the purpose of the loan. Home mortgage and home equity loans and lines are typically secured by first or second liens on residential real estate. Consumer loans may be secured by personal property, such as auto loans or they may be unsecured loan products.

Management has an internal credit process in place to maintain credit standards. This process along with an in-house loan administration, accompanied by oversight and review procedures, combines to control and manage credit risk. The primary purpose of loan underwriting is the evaluation of specific lending risks that involves the analysis of the borrower’s ability to service the debt as well as the assessment of the value of the underlying collateral. Oversight and review procedures include the monitoring of the portfolio credit quality, early identification of potential problem credits and the management of the problem credits. As part of the oversight and review process, the Company maintains an allowance for loan and lease losses (the “allowance”) to absorb estimated and probable losses in the loan and lease portfolio. The allowance is based on consistent, periodic review and evaluation of the loan and lease portfolio, along with ongoing, monthly assessments of the probable losses and problem credits in each portfolio. While portions of the allowance are attributed to specific portfolio segments, the entire allowance is available to absorb credit losses inherent in the total loan portfolio.

Summary information on the allowance for loan and lease loss activity for the years ended December 31 is provided in the following table:

(In thousands)			2014		2013		2012
Balance at beginning of year			$	38,766	$	42,957	$	49,426
	Provision (credit) for loan and lease losses			(163)		(1,084)		3,649
	Loan and lease charge-offs			(2,687)		(11,165)		(12,804)
	Loan and lease recoveries			1,886		8,058		2,686
		Net charge-offs		(801)		(3,107)		(10,118)
Balance at period end			$	37,802	$	38,766	$	42,957

The following tables provide information on the activity in the allowance for loan and lease losses by the respective loan portfolio segment for the years ended December 31:

		2014
				Commercial Real Estate										Residential Real Estate
								Commercial
		Commercial		Commercial		Commercial		Owner						Residential		Residential
(Dollars in thousands)		Business		AD&C		Investor R/E		Occupied R/E		Leasing		Consumer		Mortgage		Construction		Total
Balance at beginning of year		$	6,308	$	3,754	$	9,263	$	6,308	$	16	$	4,142	$	7,819	$	1,156	$	38,766
Provision (credit)			(1,204)		1,042		486		1,094		(7)		119		(1,385)		(308)		(163)
Charge-offs			(729)		(529)		(3)		(265)		-		(834)		(323)		(4)		(2,687)
Recoveries			1,477		-		38		6		-		165		121		79		1,886
	Net charge-offs		748		(529)		35		(259)		-		(669)		(202)		75		(801)
Balance at end of period		$	5,852	$	4,267	$	9,784	$	7,143	$	9	$	3,592	$	6,232	$	923	$	37,802
Total loans and leases		$	390,781	$	205,124	$	640,193	$	611,061	$	54	$	425,552	$	717,886	$	136,741	$	3,127,392
Allowance for loans and leases to total loans and leases ratio			1.50%		2.08%		1.53%		1.17%		16.80%		0.84%		0.87%		0.67%		1.21%

Balance of loans specifically evaluated for impairment		$	3,894	$	2,464	$	10,279	$	8,941		na.		na.	$	3,535	$	306	$	29,419
Allowance for loans specifically evaluated for impairment		$	788	$	741	$	541	$	824		na.		na.	$	-	$	-	$	2,894
Specific allowance to specific loans ratio			20.24%		30.07%		5.26%		9.22%		na.		na.		na.		na.		9.84%

Balance of loans collectively evaluated		$	386,887	$	202,660	$	629,914	$	602,120	$	54	$	425,552	$	714,351	$	136,435	$	3,097,973
Allowance for loans collectively evaluated		$	5,064	$	3,526	$	9,243	$	6,319	$	9	$	3,592	$	6,232	$	923	$	34,908
Collective allowance to collective loans ratio			1.31%		1.74%		1.47%		1.05%		16.80%		0.84%		0.87%		0.68%		1.13%

		2013
				Commercial Real Estate										Residential Real Estate
								Commercial
		Commercial		Commercial		Commercial		Owner						Residential		Residential
(Dollars in thousands)		Business		AD&C		Investor R/E		Occupied R/E		Leasing		Consumer		Mortgage		Construction		Total
Balance at beginning of year		$	6,495	$	4,737	$	9,583	$	6,997	$	332	$	3,846	$	8,522	$	2,445	$	42,957
Provision (credit)			1,910		(3,978)		1,100		(874)		(326)		1,951		329		(1,196)		(1,084)
Charge-offs			(2,915)		(85)		(4,774)		(240)		-		(1,853)		(1,194)		(104)		(11,165)
Recoveries			818		3,080		3,354		425		10		198		162		11		8,058
	Net charge-offs		(2,097)		2,995		(1,420)		185		10		(1,655)		(1,032)		(93)		(3,107)
Balance at end of period		$	6,308	$	3,754	$	9,263	$	6,308	$	16	$	4,142	$	7,819	$	1,156	$	38,766

Total loans and leases		$	356,651	$	160,696	$	552,178	$	592,823	$	703	$	373,657	$	618,381	$	129,177	$	2,784,266
Allowance for loans and leases to total loans and leases ratio			1.77%		2.34%		1.68%		1.06%		2.28%		1.11%		1.26%		0.89%		1.39%

Balance of loans specifically evaluated for impairment		$	5,608	$	4,128	$	7,654	$	7,111		na.	$	29	$	6,141	$	1,852	$	32,523
Allowance for loans specifically evaluated for impairment		$	849	$	1,031	$	126	$	426		na.		na.	$	626	$	-	$	3,058
Specific allowance to specific loans ratio			15.14%		24.98%		1.65%		5.99%		na.		na.		10.19%		na.		9.40%

Balance of loans collectively evaluated		$	351,043	$	156,568	$	544,524	$	585,712	$	703	$	373,628	$	612,240	$	127,325	$	2,751,743
Allowance for loans collectively evaluated		$	5,459	$	2,723	$	9,137	$	5,882	$	16	$	4,142	$	7,193	$	1,156	$	35,708
Collective allowance to collective loans ratio			1.56%		1.74%		1.68%		1.00%		2.28%		1.11%		1.17%		0.91%		1.30%

The Company’s methodology for evaluating whether a loan is impaired begins with risk-rating credits on an individual basis and includes consideration of the borrower’s overall financial condition, payment record and available cash resources that may include the collateral value and, in a select few cases, verifiable support from financial guarantors. In measuring impairment, the Company looks primarily to the discounted cash flows of the project itself or to the value of the collateral as the primary sources of repayment of the loan. Collateral values or estimates of discounted cash flows (inclusive of any potential cash flow from guarantees) are evaluated to estimate the probability and severity of potential losses. The actual occurrence and severity of losses involving impaired credits can differ substantially from estimates.

The Company may consider the existence of guarantees and the financial strength and wherewithal of the guarantors involved in any loan relationship. Guarantees may be considered as a source of repayment based on the guarantor’s financial condition and respective payment capacity. Accordingly, absent a verifiable payment capacity, a guarantee alone would not be sufficient to avoid classifying the loan as impaired.

Management has established a credit process that dictates that procedures be performed to monitor impaired loans between the receipt of an original appraisal and the updated appraisal. These procedures include the following:

An internal evaluation is updated quarterly to include borrower financial statements and/or cash flow projections.
The borrower may be contacted for a meeting to discuss an updated or revised action plan which may include a request for additional collateral.
Re-verification of the documentation supporting the Company’s position with respect to the collateral securing the loan.
At the monthly credit committee meeting the loan may be downgraded.
Upon receipt of the updated appraisal or based on an updated internal financial evaluation, the loan balance is compared to the appraisal and a specific allowance is determined for the particular loan, typically for the amount of the difference between the appraisal and the loan balance.
The Company will specifically reserve for or charge-off the excess of the loan amount over the amount of the appraisal. In certain cases the Company may establish a larger reserve due to knowledge of current market conditions or the existence of an offer for the collateral that will facilitate a more timely resolution of the loan.

The Company generally follows a policy of not extending maturities on non-performing loans under existing terms. Certain performing loans that have displayed some inherent weakness in the underlying collateral values, an inability to comply with certain loan covenants which do not affect the performance of the credit or other identified weakness may have their terms extended on an exception basis. Maturity date extensions only occur under revised terms that place the Company in a better position to fully collect the loan under the contractual terms and /or terms at the time of the extension that may eliminate or mitigate the inherent weakness in the loan. These terms may incorporate, but are not limited to additional assignment of collateral, significant balance curtailments/liquidations and assignments of additional project cash flows. Documented or demonstrated guarantees may be a consideration in the extension of loan maturities. As a general matter, the Company does not view extension of a loan to be a satisfactory approach to resolving non-performing credits.

Loans that have their terms restructured (e.g., interest rates, loan maturity date, payment and amortization period, etc.) in circumstances that provide payment relief or other concessions to a borrower experiencing financial difficulty are considered trouble debt restructured loans. All restructurings that constitute concessions to a troubled borrower are considered impaired loans that may either be in accruing status or non-accruing status. Non-accruing restructured loans may return to accruing status provided there is a sufficient period of payment performance in accordance with the restructure terms. Loans may be removed from the restructured category in the year subsequent to the restructuring if their revised loans terms are considered to be consistent with terms that can be obtained in the credit market for loans with comparable risk. At December 31, 2014, restructured loans totaled $11.6 million, of which $5.5 million were accruing and $6.1 million were non-accruing. The Company has commitments to lend $0.1 million in additional funds on loans that have been restructured at December 31, 2014. Restructured loans at December 31, 2013 totaled $20.0 million, of which $9.5 million were accruing and $10.5 million were non-accruing. Commitments to lend additional funds on loans that have been restructured at December 31, 2013 amounted to $5.5 million.

The following table provides summary information regarding impaired loans at December 31 and for the years then ended:

(In thousands)		2014		2013		2012
Impaired loans with a specific allowance		$	11,411	$	12,217	$	27,526
Impaired loans without a specific allowance			18,008		20,306		21,247
	Total impaired loans	$	29,419	$	32,523	$	48,773

Allowance for loan and lease losses related to impaired loans		$	2,894	$	3,058	$	5,149
Allowance for loan and lease losses related to loans collectively evaluated			34,908		35,708		37,808
	Total allowance for loan and lease losses	$	37,802	$	38,766	$	42,957

Average impaired loans for the period		$	34,331	$	38,379	$	57,438
Contractual interest income due on impaired loans during the period		$	2,339	$	2,612	$	4,433
Interest income on impaired loans recognized on a cash basis		$	773	$	1,374	$	1,121
Interest income on impaired loans recognized on an accrual basis		$	280	$	473	$	560

The following tables present the recorded investment with respect to impaired loans, the associated allowance by the applicable portfolio segment and the principal balance of the impaired loans prior to amounts charged-off at December 31 for the years indicated:

			2014
					Commercial Real Estate								Total Recorded
									Commercial		All		Investment in
					Commercial		Commercial		Owner		Other		Impaired
(In thousands)			Commercial		AD&C		Investor R/E		Occupied R/E		Loans		Loans
Impaired loans with a specific allowance
		Non-accruing	$	473	$	1,330	$	2,288	$	5,013	$	-	$	9,104
		Restructured accruing		687		-		-		-		-		687
		Restructured non-accruing		308		-		76		1,236		-		1,620
	Balance		$	1,468	$	1,330	$	2,364	$	6,249	$	-	$	11,411

	Allowance		$	788	$	741	$	541	$	824	$	-	$	2,894

Impaired loans without a specific allowance
		Non-accruing	$	1,115	$	-	$	5,792	$	1,769	$	-	$	8,676
		Restructured accruing		23		-		2,123		-		2,664		4,810
		Restructured non-accruing		1,288		1,134		-		923		1,177		4,522
	Balance		$	2,426	$	1,134	$	7,915	$	2,692	$	3,841	$	18,008

Total impaired loans
		Non-accruing	$	1,588	$	1,330	$	8,080	$	6,782	$	-	$	17,780
		Restructured accruing		710		-		2,123		-		2,664		5,497
		Restructured non-accruing		1,596		1,134		76		2,159		1,177		6,142
	Balance		$	3,894	$	2,464	$	10,279	$	8,941	$	3,841	$	29,419

Unpaid principal balance in total impaired loans			$	5,360	$	7,044	$	14,926	$	10,729	$	4,126	$	42,185

	2014

			Commercial Real Estate								Total Recorded
							Commercial		All		Investment in
			Commercial		Commercial		Owner		Other		Impaired
(In thousands)	Commercial		AD&C		Investor R/E		Occupied R/E		Loans		Loans
Average impaired loans for the period	$	5,308	$	3,651	$	9,327	$	8,963	$	7,082	$	34,331
Contractual interest income due on impaired loans during the period	$	311	$	352	$	730	$	859	$	87
Interest income on impaired loans recognized on a cash basis	$	252	$	39	$	78	$	344	$	60
Interest income on impaired loans recognized on an accrual basis	$	63	$	-	$	111	$	-	$	106

			2013
					Commercial Real Estate								Total Recorded
									Commercial		All		Investment in
					Commercial		Commercial		Owner		Other		Impaired
(In thousands)			Commercial		AD&C		Investor R/E		Occupied R/E		Loans		Loans
Impaired loans with a specific allowance
		Non-accruing	$	374	$	1,360	$	749	$	2,022	$	-	$	4,505
		Restructured accruing		790		-		-		1,174		2,365		4,329
		Restructured non-accruing		349		1,122		-		1,274		638		3,383
	Balance		$	1,513	$	2,482	$	749	$	4,470	$	3,003	$	12,217

	Allowance		$	849	$	1,031	$	126	$	426	$	626	$	3,058

Impaired loans without a specific allowance
		Non-accruing	$	1,532	$	382	$	5,440	$	646	$	-	$	8,000
		Restructured accruing		1,417		-		852		-		2,861		5,130
		Restructured non-accruing		1,146		1,264		613		1,995		2,158		7,176
	Balance		$	4,095	$	1,646	$	6,905	$	2,641	$	5,019	$	20,306

Total impaired loans
		Non-accruing	$	1,906	$	1,742	$	6,189	$	2,668	$	-	$	12,505
		Restructured accruing		2,207		-		852		1,174		5,226		9,459
		Restructured non-accruing		1,495		2,386		613		3,269		2,796		10,559
	Balance		$	5,608	$	4,128	$	7,654	$	7,111	$	8,022	$	32,523

Unpaid principal balance in total impaired loans			$	7,943	$	10,318	$	12,351	$	8,684	$	8,650	$	47,946

	2013

			Commercial Real Estate								Total Recorded
							Commercial		All		Investment in
			Commercial		Commercial		Owner		Other		Impaired
(In thousands)	Commercial		AD&C		Investor R/E		Occupied R/E		Loans		Loans
Average impaired loans for the period	$	7,153	$	5,451	$	10,605	$	8,386	$	6,784	$	38,379
Contractual interest income due on impaired loans during the period	$	452	$	654	$	587	$	692	$	227
Interest income on impaired loans recognized on a cash basis	$	238	$	253	$	75	$	725	$	83
Interest income on impaired loans recognized on an accrual basis	$	133	$	-	$	30	$	77	$	233

Credit Quality

The following tables provide information on the credit quality of the loan portfolio by segment at December 31 for the years indicated:

		2014
				Commercial Real Estate										Residential Real Estate
								Commercial
				Commercial		Commercial		Owner						Residential		Residential
(In thousands)		Commercial		AD&C		Investor R/E		Occupied R/E		Leasing		Consumer		Mortgage		Construction		Total
Non-performing loans and assets:
	Non-accrual loans and leases	$	3,184	$	2,464	$	8,156	$	8,941	$	-	$	1,668	$	3,012	$	1,105	$	28,530
	Restructured loans and leases		710		-		2,123		-		-		-		2,664		-		5,497
Total non-performing loans and leases			3,894		2,464		10,279		8,941		-		1,668		5,676		1,105		34,027
	Other real estate owned		39		365		-		-		-		-		1,408		1,383		3,195
Total non-performing assets		$	3,933	$	2,829	$	10,279	$	8,941	$	-	$	1,668	$	7,084	$	2,488	$	37,222

		2013
				Commercial Real Estate										Residential Real Estate
								Commercial
				Commercial		Commercial		Owner						Residential		Residential
(In thousands)		Commercial		AD&C		Investor R/E		Occupied R/E		Leasing		Consumer		Mortgage		Construction		Total
Non-performing loans and assets:
	Non-accrual loans and leases	$	3,400	$	4,127	$	6,802	$	5,936	$	-	$	2,259	$	5,735	$	2,315	$	30,574
	Loans and leases 90 days past due		-		-		-		-		-		1		-		-		1
	Restructured loans and leases		2,207		-		852		1,174		-		29		5,197		-		9,459
Total non-performing loans and leases			5,607		4,127		7,654		7,110		-		2,289		10,932		2,315		40,034
	Other real estate owned		54		365		-		-		-		-		919		-		1,338
Total non-performing assets		$	5,661	$	4,492	$	7,654	$	7,110	$	-	$	2,289	$	11,851	$	2,315	$	41,372

			2014
					Commercial Real Estate										Residential Real Estate
									Commercial
					Commercial		Commercial		Owner						Residential		Residential
(In thousands)			Commercial		AD&C		Investor R/E		Occupied R/E		Leasing		Consumer		Mortgage		Construction		Total
Past due loans and leases
	31-60 days		$	759	$	-	$	2,374	$	2,658	$	11	$	797	$	3,064	$	-	$	9,663
	61-90 days			995		320		1,493		156		-		179		836		-		3,979
	> 90 days			-		-		-		-		-		-		-		-		-
		Total past due		1,754		320		3,867		2,814		11		976		3,900		-		13,642
	Non-accrual loans and leases			3,184		2,464		8,156		8,941		-		1,668		3,012		1,105		28,530
	Loans aquired with deteriorated credit quality			1,238		-		-		1,773		-		-		-		-		3,011
	Current loans			384,605		202,340		628,170		597,533		43		422,908		710,974		135,636		3,082,209
		Total loans and leases	$	390,781	$	205,124	$	640,193	$	611,061	$	54	$	425,552	$	717,886	$	136,741	$	3,127,392

			2013
					Commercial Real Estate										Residential Real Estate
									Commercial
					Commercial		Commercial		Owner						Residential		Residential
(In thousands)			Commercial		AD&C		Investor R/E		Occupied R/E		Leasing		Consumer		Mortgage		Construction		Total
Past due loans and leases
	31-60 days		$	382	$	-	$	5,826	$	876	$	4	$	716	$	4,119	$	-	$	11,923
	61-90 days			1,142		-		-		2,540		-		176		208		-		4,066
	> 90 days			-		-		-		-		-		1		-		-		1
		Total past due		1,524		-		5,826		3,416		4		893		4,327		-		15,990
	Non-accrual loans and leases			3,400		4,127		6,802		5,936		-		2,259		5,735		2,315		30,574
	Loans aquired with deteriorated credit quality			1,363		-		571		2,366		-		-		-		-		4,300
	Current loans			350,364		156,569		538,979		581,105		699		370,505		608,319		126,862		2,733,402
		Total loans and leases	$	356,651	$	160,696	$	552,178	$	592,823	$	703	$	373,657	$	618,381	$	129,177	$	2,784,266

Loans and leases are monitored for credit quality on a recurring basis. The credit quality indicators used are dependent on the portfolio segment to which the loan relates. Commercial loans and leases and non-commercial loans and leases have different credit quality indicators as a result of the methods used to monitor each of these loan segments.

The credit quality indicators for commercial loans and leases are developed through review of individual borrowers on an ongoing basis. Each borrower is evaluated at least annually with more frequent evaluation of more severely criticized loans and leases. The indicators represent the rating for loans or leases as of the date presented based on the most recent credit review performed. These credit quality indicators are defined as follows:

Pass - A pass rated credit is not adversely classified because it does not display any of the characteristics for adverse classification.

Special mention – A special mention credit has potential weaknesses that deserve management’s close attention. If uncorrected, such weaknesses may result in deterioration of the repayment prospects or collateral position at some future date. Special mention assets are not adversely classified and do not warrant adverse classification.

Substandard – A substandard loan is inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Loans classified as substandard generally have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility of loss if the deficiencies are not corrected.

Doubtful – A loan that is classified as doubtful has all the weaknesses inherent in a loan classified as substandard with added characteristics that the weaknesses make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions and values.

Loss – Loans classified as a loss are considered uncollectible and of such little value that their continuing to be carried as a loan is not warranted. This classification is not necessarily equivalent to no potential for recovery or salvage value, but rather that it is not appropriate to defer a full write-off even though partial recovery may be effected in the future.

The following tables provide information by credit risk rating indicators for each segment of the commercial loan portfolio at December 31 for the years indicated:

		2014
				Commercial Real Estate
								Commercial
				Commercial		Commercial		Owner
(In thousands)		Commercial		AD&C		Investor R/E		Occupied R/E		Total
	Pass	$	366,367	$	201,642	$	621,511	$	581,575	$	1,771,095
	Special Mention		8,835		698		3,931		7,669		21,133
	Substandard		15,579		2,784		14,751		21,817		54,931
	Doubtful		-		-		-		-		-
Total		$	390,781	$	205,124	$	640,193	$	611,061	$	1,847,159

		2013
				Commercial Real Estate
								Commercial
				Commercial		Commercial		Owner
(In thousands)		Commercial		AD&C		Investor R/E		Occupied R/E		Total
	Pass	$	324,941	$	154,869	$	523,901	$	553,604	$	1,557,315
	Special Mention		16,166		-		2,944		15,702		34,812
	Substandard		15,274		5,827		25,333		23,517		69,951
	Doubtful		270		-		-		-		270
Total		$	356,651	$	160,696	$	552,178	$	592,823	$	1,662,348

Homogeneous loan pools do not have individual loans subjected to internal risk ratings therefore, the credit indicator applied to these pools is based on their delinquency status. The following tables provide information by credit risk rating indicators for those remaining segments of the loan portfolio at December 31 for the years indicated:

			2014
							Residential Real Estate
							Residential		Residential
(In thousands)			Leasing		Consumer		Mortgage		Construction		Total
	Performing		$	54	$	423,884	$	712,210	$	135,636	$	1,271,784
	Non-performing:
		90 days past due		-		-		-		-		-
		Non-accruing		-		1,668		3,012		1,105		5,785
		Restructured loans and leases		-		-		2,664		-		2,664
Total			$	54	$	425,552	$	717,886	$	136,741	$	1,280,233

			2013
							Residential Real Estate
							Residential		Residential
(In thousands)			Leasing		Consumer		Mortgage		Construction		Total
	Performing		$	703	$	371,368	$	607,449	$	126,862	$	1,106,382
	Non-performing:
		90 days past due		-		1		-		-		1
		Non-accruing		-		2,259		5,735		2,315		10,309
		Restructured loans and leases		-		29		5,197		-		5,226
Total			$	703	$	373,657	$	618,381	$	129,177	$	1,121,918

During the year ended December 31, 2014, the Company restructured $1.6 million in loans that were designated as troubled debt restructurings. Modifications consisted principally of interest rate concessions. No modifications resulted in the reduction of the principal in the associated loan balances. Restructured loans are subject to periodic credit reviews to determine the necessity and adequacy of a specific loan loss allowance based on the collectability of the recorded investment in the restructured loan. Loans restructured during 2014 have specific reserves of $0.1 million at December 31, 2014. For the year ended December 31, 2013, the Company restructured $3.4 million in loans. Modifications consisted principally of interest rate concessions and no modifications resulted in the reduction of the recorded investment in the associated loan balances. Loans restructured during 2013 had specific reserves of $0.3 million thousand at December 31, 2013.

The following table provides the amounts of the restructured loans at the date of restructuring for specific segments of the loan portfolio during the period indicated:

		For the Year Ended December 31, 2014
				Commercial Real Estate
								Commercial		All
				Commercial		Commercial		Owner		Other
(In thousands)		Commercial		AD&C		Investor R/E		Occupied R/E		Loans		Total
Troubled debt restructurings
	Restructured accruing	$	75	$	-	$	1,284	$	-	$	-	$	1,359
	Restructured non-accruing		92		192		-		-		-		284
Balance		$	167	$	192	$	1,284	$	-	$	-	$	1,643

Specific allowance		$	99	$	-	$	-	$	-	$	-	$	99

Restructured and subsequently defaulted		$	-	$	-	$	-	$	-	$	-	$	-

		For the Year Ended December 31, 2013
				Commercial Real Estate
								Commercial		All
				Commercial		Commercial		Owner		Other
(In thousands)		Commercial		AD&C		Investor R/E		Occupied R/E		Loans		Total
Troubled debt restructurings
	Restructured accruing	$	87	$	-	$	852	$	-	$	2,064	$	3,003
	Restructured non-accruing		425		-		-		-		-		425
Balance		$	512	$	-	$	852	$	-	$	2,064	$	3,428

Specific allowance		$	141	$	-	$	-	$	-	$	-	$	141

Restructured and subsequently defaulted		$	-	$	-	$	-	$	-	$	-	$	-

Other Real Estate Owned

Other real estate owned totaled $3.2 million and $1.3 million at December 31, 2014 and 2013, respectively. At December 31, 2014, $2.8 million of the other real estate owned was comprised of consumer mortgage loans. Consumer mortgage loans collateralized by real estate property that are in the process of foreclosure according to the requirements of the associated local jurisdiction amounted to $0.9 million at December 31, 2014.