Troubled Debt Restructurings:

Total troubled debt restructurings were $5.8 million and $7.0 million at June 30, 2017 and December 31, 2016, respectively. The Company has allocated $92 thousand and $101 thousand of specific reserves to customers whose loan terms have been modified in troubled debt restructurings at June 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 June 30, 2017 and at December 31, 2016.

During the three and six month periods ended June 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; or a legal concession. During the six month period ended June 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 six month period in 2016, the terms of such loans included a reduction of the stated interest rate of the loan by 1.24% 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 six month periods ended June 30, 2017 and 2016:

			Pre-Modification		Post-Modification
Three Months Ended June 30, 2017	Number of		Outstanding Recorded		Outstanding Recorded
(In thousands of Dollars)	Loans		Investment		Investment
Originated loans:
Residential real estate
1-4 family residential		1	$	16	$	16
Home equity lines of credit		3		70		70
Indirect		10		64		64
Total originated loans		14	$	150	$	150
Acquired loans:
Residential real estate
1-4 family residential		2		24		24
Consumer		1		29		29
Total acquired loans		3	$	53	$	53
Total loans		17	$	203	$	203

			Pre-Modification		Post-Modification
Six Months Ended June 30, 2017	Number of		Outstanding Recorded		Outstanding Recorded
(In Thousands of Dollars)	Loans		Investment		Investment
Originated loans:
Residential real estate
1-4 family residential		7	$	300	$	303
Home equity lines of credit		8		164		164
Indirect		14		80		80
Total originated loans		29	$	544	$	547
Acquired loans:
Residential real estate
1-4 family residential		2		24		24
Home equity lines of credit		1		57		57
Consumer		1		29		29
Total acquired loans		4	$	110	$	110
Total loans		33	$	654	$	657

			Pre-Modification		Post-Modification
Three Months Ended June 30, 2016	Number of		Outstanding Recorded		Outstanding Recorded
(In thousands of Dollars)	Loans		Investment		Investment
Originated loans:
Residential real estate
1-4 family residential		3	$	188	$	188
Indirect		5		37		37
Total originated loans		8	$	225	$	225
Acquired loans:
Residential real estate
1-4 family residential		2		68		68
Total loans		10	$	293	$	293

			Pre-Modification		Post-Modification
Six Months Ended June 30, 2016	Number of		Outstanding Recorded		Outstanding Recorded
(In Thousands of Dollars)	Loans		Investment		Investment
Originated loans:
Residential real estate
1-4 family residential		6	$	235	$	236
Indirect		13		114		114
Total originated loans		19	$	349	$	350
Acquired loans:
Residential real estate
1-4 family residential		2		68		68
Consumer		1		33		33
Total acquired loans		3	$	101	$	101
Total loans		22	$	450	$	451

There were $17 thousand and $30 thousand in charge offs and a $17 thousand and $30 thousand increase to the provision for loan losses during the three and six month period ended June 30, 2017, as a result of troubled debt restructurings. There were $316 thousand and $327 thousand in charge offs during the three and six month periods ended June 30, 2016, respectively. There was no increase to the provision for loan losses during the three month period ended June 30, 2016 and an $11 thousand increase to the provision during the six month period ended June 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 six month period ended June 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 six month periods ended June 30, 2016. The two commercial loans were past due at June 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.