4. LOANS

The loan portfolio of the Company consisted of the following:


	AT DECEMBER 31,
	2015		2014
	(IN THOUSANDS)
Commercial	$	181,066	$	139,126
Commercial loans secured by real estate		421,637		410,329
Real estate-mortgage		257,937		258,616
Consumer		20,344		19,009
Loans, net of unearned income	$	880,984	$	827,080

Loan balances at December 31, 2015 and 2014 are net of unearned income of $557,000 and $554,000, respectively. Real estate construction loans comprised 3.0% and 3.5% of total loans net of unearned income at December 31, 2015 and 2014, respectively. The Company has no exposure to subprime mortgage loans in either the loan or investment portfolios. The Company has no direct loan exposure to foreign countries. Additionally, the Company has no significant industry lending concentrations. As of December 31, 2015 and 2014, loans to customers engaged in similar activities and having similar economic characteristics, as defined by standard industrial classifications, did not exceed 10% of total loans. Additionally, the majority of the Company’s lending occurs within a 250 mile radius of the Johnstown market.

In the ordinary course of business, the subsidiaries have transactions, including loans, with their officers, directors, and their affiliated companies. In management’s opinion, these transactions were on substantially the same terms as those prevailing at the time for comparable transactions with unaffiliated parties and do not involve more than the normal credit risk. These loans totaled $846,000 and $847,000 at December 31, 2015 and 2014, respectively.