7. LOANS

The loan portfolio of the Company consisted of the following:


	AT DECEMBER 31,
	2019		2018
	(IN THOUSANDS)
Commercial:
Commercial and industrial	$	173,922	$	158,279
Commercial loans secured by owner occupied real estate		91,655		91,905
Commercial loans secured by non-owner occupied real estate		363,635		356,543
Real estate − residential mortgage		235,239		237,964
Consumer		18,255		17,591
Loans, net of unearned income	$	882,706	$	862,282

Loan balances at December 31, 2019 and 2018 are net of unearned income of $384,000 and $322,000, respectively. Real estate construction loans comprised 4.9% and 3.5% of total loans net of unearned income at December 31, 2019 and 2018, 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, 2019 and 2018, 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 $544,000 and $694,000 at December 31, 2019 and 2018, respectively.