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Loans and Allowance
 12 Months Ended
Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Loans and Allowance
Note 6:  Loans and Allowance
The Corporation’s loan and allowance polices are discussed in Note 1 above.
The following table presents the breakdown of loans as of December 31, 2014 and December 31, 2013.
   
December 31, 2014
    
December 31, 2013
  
     
Construction/Land
  
$
26,055
    
$
24,307
  
One-to-four family residential
    
 
133,904
      
 
137,298
  
Multi-family residential
    
 
20,936
      
 
16,408
  
Nonresidential
    
 
122,894
      
 
118,946
  
Commercial
    
 
27,861
      
 
24,741
  
Consumer
    
 
3,894
      
 
4,326
  
     
 
335,544
      
 
326,026
  
Unamortized deferred loan costs
    
 
513
      
 
487
  
Undisbursed loans in process
    
(57
)
    
(5,775
)
Allowance for loan losses
    
(4,005
)
    
(4,510
)
Total loans
  
$
331,995
    
$
316,228
  
 
The risk characteristics of each loan portfolio segment are as follows:
Construction, Land and Land Development
The Construction, Land and Land Development segments include loans for raw land, loans to develop raw land preparatory to building construction, and construction loans of all types. Construction and development loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analysis of absorption and lease rates and financial analysis of the developers and property owners. Construction and development loans are generally based on estimates of costs and value associated with the complete project. These estimates may be inaccurate. These loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Corporation until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest-rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing.
Land loans are secured by raw land held as an investment, for future development, or as collateral for other use. Management monitors and evaluates these loans based on collateral, geography and risk grade criteria. These loans are underwritten based on the underlying purpose of the loan with repayment primarily from the sale or use of the underlying collateral.
One-to-Four Family Residential and Consumer
With respect to residential loans that are secured by one-to-four family residences and are usually owner occupied, the Corporation generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. This segment also includes residential loans secured by non-owner-occupied one-to-four family residences. Management tracks the level of owner-occupied residential loans versus non-owner-occupied residential loans as a portion of our recent loss history relates to these loans. Home equity loans are typically secured by a subordinate interest in one-to-four family residences, and consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans are unsecured, such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas, such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.
Nonresidential (including agricultural land) and Multi-family Residential
These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Nonresidential and multi-family residential real estate lending typically involves higher loan principal amounts, and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Nonresidential and multi-family residential real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Corporation’s nonresidential and multi-family residential real estate portfolio are diverse in terms of type and geographic location. Management monitors and evaluates these loans based on collateral, geography and risk grade criteria. As a general rule, the Corporation avoids financing single-purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied residential real estate loans versus non-owner-occupied residential loans.
Commercial
Commercial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers.
The following tables present the activity in the allowance for loan losses for the years ended December 31, 2014 and December 31, 2013, and information regarding the breakdown of the balance in the allowance for loan losses and the recorded investment in loans, both presented by portfolio class and impairment method, as of December 31, 2014 and December 31, 2013.
   
Construction/Land
    
1-4 Family
    
Multi-Family
    
Nonresidential
    
Commercial
 
    
Consumer
    
Total
  
Year Ended
December 31, 2014
Balances at beginning of period:
 
  
$
676
    
$
1,749
    
$
404
    
$
1,470
    
$
189
    
$
22
    
$
4,510
  
Provision for losses
 
    
8
      
809
      
141
      
(516
)
    
(57
)
    
61
      
446
  
Loans charged off
 
    
(29
)
    
(629
)
    
(517
)
    
(100
)
    
(4
)
    
(146
)
    
(1,425
)
Recoveries on loans
 
    
85
 
      
48
 
      
-
 
      
253
 
      
23
 
      
65
 
      
474
 
  
Balances at end of period
 
  
$
740
    
$
1,977
    
$
28
    
$
1,107
    
$
151
    
$
2
    
$
4,005
  
 
Year Ended
December 31, 2013
Balances at beginning of period:
 
  
$
648
    
$
1,423
    
$
281
    
$
1,078
    
$
133
    
$
1
    
$
3,564
  
Provision for losses
 
    
109
      
565
      
123
      
(180
)
    
181
      
134
      
932
  
Loans charged off
 
    
(99
)
    
(245
)
    
-
 
      
(182
)
    
(140
)
    
(177
)
    
(843
)
Recoveries on loans
 
    
18
      
6
       -      
754
      
15
      
64
      
857
  
Balances at end of period
 
  
$
676
    
$
1,749
    
$
404
    
$
1,470
    
$
189
    
$
22
    
$
4,510
  
 
 
   
 
Construction/ Land
    
 
1-4
Family
    
 
Multi-Family
    
 
Nonresidential
    
 
Commercial
    
 
Consumer
    
 
Total
  
As of December 31, 2014
Allowance for losses:
 
                            
Individually evaluated for impairment
 
  
$
391
    
$
816
    
$
-
    
$
310
    
$
76
    
$
-
    
$
1,593
  
Collectively evaluated for impairment
 
    
349
      
1,023
      
28
      
745
 
      
75
      
2
      
2,222
  
Loans acquired with a deteriorated credit quality
 
    
-
 
      
138
      
-
 
      
52
      
-
      
-
      
190
  
Balances at end of period
 
  
$
740
    
$
1,977
    
$
28
    
$
1,107
    
$
151
    
$
2
    
$
4,005
  
Loans:
 
                                                        
Individually evaluated for impairment
 
  
$
4,047
    
$
4,448
    
$
1,013
    
$
3,315
    
$
379
    
$
8
    
$
13,210
  
Collectively evaluated for impairment
 
    
21,597
      
128,421
      
19,923
      
119,176
      
27,468
      
3,876
      
320,461
  
Loans acquired with a deteriorated credit quality
 
    
411
 
      
1,035
      
-
      
403
      
14
      
10
      
1,873
  
Balances at end of period
 
  
$
26,055
    
$
133,904
    
$
20,936
    
$
122,894
    
$
27,861
    
$
3,894
    
$
335,544
  
                                                         
As of December 31, 2013
Allowance for losses:
 
                                                        
Individually evaluated for impairment
 
  
$
195
    
$
552
    
$
196
    
$
97
    
$
68
    
$
-
    
$
1,108
  
Collectively evaluated for impairment
 
    
481
      
1,101
      
110
      
1,305
      
120
      
21
      
3,138
  
Loans acquired with a deteriorated credit quality
 
    
-
      
96
      
98
      
68
      
1
      
1
      
264
  
Balances at end of period
 
  
$
676
    
$
1,749
    
$
404
    
$
1,470
    
$
189
    
$
22
    
$
4,510
  
Loans:
 
                                                        
Individually evaluated for impairment
 
  
$
4,104
    
$
5,917
    
$
1,074
    
$
4,096
    
$
372
    
$
-
    
$
15,563
  
Collectively evaluated for impairment
 
    
19,866
      
130,100
      
14,834
      
114,145
      
24,354
      
4,307
      
307,606
  
Loans acquired with a deteriorated credit quality
 
    
337
      
1,281
      
500
      
705
      
15
      
19
      
2,857
  
Balances at end of period
 
  
$
24,307
    
$
137,298
    
$
16,408
    
$
118,946
    
$
24,741
    
$
4,326
    
$
326,026
  
 
 
The following tables present the credit risk profile of the Corporation’s loan portfolio based on rating category as of December 31, 2014 and December 31, 2013. Loans acquired from Dupont State Bank in the November 2012 acquisition have been adjusted to fair value for the periods ending December 31, 2014 and December 31, 2013.
December 31, 2014
 
  
Total Portfolio
    
Pass
    
Special Mention
    
Substandard
    
Doubtful
  
     
Construction/Land
  
$
26,055
    
$
21,907
    
$
31
    
$
4,117
    
$
-
  
1-4 family residential
    
133,904
      
124,969
      
2,817
      
6,013
      
105
  
Multi-family residential
    
20,936
      
19,881
      
42
      
1,013
      
-
  
Nonresidential
    
122,894
      
117,336
      
2,486
      
2,923
      
149
  
Commercial
    
27,861
      
27,432
      
9
      
355
      
65
  
Consumer
    
3,894
      
3,875
      
-
      
19
      
-
  
 
Total loans
  
$
335,544
    
$
315,400
    
$
5,385
    
$
14,440
    
$
319
  
 
December 31, 2013
 
  
Total Portfolio
    
Pass
    
Special Mention
 
    
Substandard
    
Doubtful
  
     
Construction/Land
  
$
24,307
    
$
20,023
    
$
33
    
$
4,251
    
$
-
  
1-4 family residential
    
137,298
      
124,765
      
4,144
      
7,691
      
698
  
Multi-family residential
    
16,408
      
14,798
      
44
      
1,566
      
-
  
Nonresidential
    
118,946
      
110,622
      
2,686
      
5,066
      
572
  
Commercial
    
24,741
      
24,341
      
8
      
316
      
76
  
Consumer
    
4,326
      
4,301
      
-
      
25
      
-
  
 
Total loans
  
$
326,026
    
$
298,850
    
$
6,915
    
$
18,915
    
$
1,346
  
 
 
Credit Quality Indicators
The Corporation categorizes loans into risk categories based on relevant information about the ability of the borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes loans individually on an ongoing basis by classifying the loans as to credit risk, assigning grade classifications. Loan grade classifications of special mention, substandard, doubtful, or loss are reported to the Corporation’s board of directors monthly. The Corporation uses the following definitions for credit risk grade classifications:
Pass: Loans not meeting the criteria below are considered to be pass rated loans.
Special Mention: These assets are currently protected, but potentially weak. They have credit deficiencies deserving a higher degree of attention by management. These assets do not presently exhibit a sufficient degree of risk to warrant adverse classification. Concerns may lie with cash flow, liquidity, leverage, collateral, or industry conditions. These are graded special mention so that the appropriate level of attention is administered to prevent a move to a “substandard” rating.
Substandard: By regulatory definition, “substandard” loans are inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged. These types of loans have well defined weaknesses that jeopardize the liquidation of the debt. A distinct possibility exists that the institution will sustain some loss if the deficiencies are not corrected. These loans are considered workout credits. They exhibit at least one of the following characteristics.
· An expected loan payment is in excess of 90 days past due (non-performing), or non-earning.
· The financial condition of the borrower has deteriorated to such a point that close monitoring is necessary. Payments do not necessarily have to be past due.
· Repayment from the primary source of repayment is gone or impaired.
· The borrower has filed for bankruptcy protection.
· The loans are inadequately protected by the net worth and cash flow of the borrower.
· The guarantors have been called upon to make payments.
· The borrower has exhibited a continued inability to reduce principal (although interest payment may be current).
· The Corporation is considering a legal action against the borrower.
· The collateral position has deteriorated to a point where there is a possibility the Corporation may sustain some loss. This may be due to the financial condition or to a reduction in the value of the collateral.
·
Although loss may not seem likely, the Corporation has gone to extraordinary lengths (restructuring with extraordinary lengths) to protect its position in order to maintain a high probability of repayment.
 
Doubtful: These loans exhibit the same characteristics as those rated “substandard,” plus weaknesses that make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable. This would include inadequately secured loans that are being liquidated, and inadequately protected loans for which the likelihood of liquidation is high. This classification is temporary. Pending events are expected to materially reduce the amount of the loss. This means that the “doubtful” classification will result in either a partial or complete loss on the loan (write-down or specific reserve), with reclassification of the asset as “substandard,” or removal of the asset from the classified list, as in foreclosure or full loss.
The Corporation evaluates the loan risk grading system definitions and allowance for loan loss methodology on an ongoing basis. No significant changes were made to either during the past year.
The following tables present the Corporation’s loan portfolio aging analysis as of December 31, 2014 and December 31, 2013.
December 31, 2014
  
30-59 Days Past Due
    
60-89 Days Past Due
    
Greater than 90 Days
    
Total Past Due
    
Current
    
Purchased Credit Impaired Loans
    
Total Loans Receivables
  
Construction/Land
  
$
-
    
$
-
    
$
187
    
$
187
    
$
25,457
    
$
411
    
$
26,055
  
1-4 family residential
    
 
418
      
 
760
      
 
2,855
      
 
4,033
      
 
128,836
      
 
1,035
      
 
133,904
  
Multi-family residential
    
 
-
      
 
-
      
 
-
      
 
-
      
 
20,936
      
 
-
      
 
20,936
  
Nonresidential
    
 
458
      
 
-
      
 
1745
      
 
2,203
      
 
120,288
      
 
403
      
 
122,894
  
Commercial
    
 
-
      
 
-
      
 
116
      
 
116
      
 
27,731
      
 
14
      
 
27,861
  
Consumer
    
 
25
      
 
10
      
 
10
      
 
45
      
 
3,839
      
 
10
      
 
3,894
  
   
$
901
    
$
770
    
$
4,913
    
$
6,584
    
$
327,087
    
$
1,873
    
$
335,544
  
 
 
December 31, 2013
 
  
 
30-59 Days Past Due
    
 
60-89 Days Past Due
    
 
Greater than 90 Days
    
 
Total Past Due
    
 
Current
    
 
Purchased Credit Impaired Loans
    
 
Total Loans Receivables
  
Construction/Land
  
$
207
    
$
-
    
$
71
    
$
278
    
$
23,692
    
$
337
    
$
24,307
  
1-4 family residential
    
 
458
      
 
671
      
 
2,322
      
 
3,451
      
 
132,566
      
 
1,281
      
 
137,298
  
Multi-family residential
    
 
-
      
 
-
      
 
-
      
 
-
      
 
15,908
      
 
500
      
 
16,408
  
Nonresidential
    
 
267
      
 
398
      
 
940
      
 
1,605
      
 
116,636
      
 
705
      
 
118,946
  
Commercial
    
 
66
      
 
-
      
 
96
      
 
162
      
 
24,564
      
 
15
      
 
24,741
  
Consumer
    
 
104
      
 
7
      
 
7
      
 
118
      
 
4,189
      
 
19
      
 
4,326
  
   
$
1,102
    
$
1,076
    
$
3,436
    
$
5,614
    
$
317,555
    
$
2,857
    
$
326,026
  
 
At December 31, 2014, there were four loans, totaling $28,000, that were past due 90 days or more and accruing. Of those, there was one commercial loan, of $25,000, a 1-4 family residential loan in the amount of $1,000, and the remaining $2,000 was for two consumer loans. At December 31, 2013, there was one consumer loan of $1,000 that was past due 90 days or more and accruing.
The following table presents the Corporation’s nonaccrual loans as of December 31, 2014 and December 31, 2013, which includes both non-performing troubled debt restructured and loans contractually delinquent 90 days or more.
   
2014
    
2013
  
         
Construction/Land
  
$
2,148
    
$
3,864
  
One-to-four family residential
    
 
4,214
      
 
3,833
  
Multi-family residential
    
 
1,013
      
 
1,073
  
Nonresidential and agricultural land
    
 
3,132
      
 
2,377
  
Commercial
    
 
230
      
 
362
  
Consumer and other
    
 
8
      
 
5
  
Total nonaccrual loans
  
$
10,745
    
$
11,514
  
 
A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable the Corporation will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include non-performing commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection.
The following tables present information pertaining to the principal balances and specific valuation allocations for impaired loans as of December 31, 2014, as well as the average recorded investment and interest income recognized on impaired loans for the year ended December 31, 2014:
   
Recorded Investment
    
Unpaid Principal Balance
    
Specific
Allowance
    
Average Investment
    
Interest Income Recognized
  
Impaired loans without
a specific allowance:
  
Construction/Land
  
$
2,300
    
$
2,342
    
$
-
    
$
2,299
    
$
131
  
1-4 family residential
    
 
1,952
      
 
1,962
      
 
-
      
 
2,479
      
 
110
  
Multi-family residential
    
 
1,013
      
 
1,013
      
 
-
      
 
1,035
      
 
25
  
Nonresidential
    
 
2,360
      
 
2,614
      
 
-
      
 
2,875
      
 
71
  
Commercial
    
 
250
      
 
251
      
 
-
      
 
220
      
 
12
  
Consumer
    
 
8
      
 
9
      
 
-
      
 
9
      
 
1
  
   
$
7,883
    
$
8,191
    
$
-
    
$
8,917
    
$
350
  
 
 
   
Recorded Investment
    
Unpaid Principal Balance
    
Specific
Allowance
    
Average Investment
    
Interest Income Recognized
  
Impaired loans with
a specific allowance:
  
Construction/Land
  
$
1,747
    
$
1,761
    
$
391
    
$
1,787
    
$
24
  
1-4 family residential
    
 
2,496
      
 
2,512
      
 
816
      
 
2,456
      
 
52
  
Multi-family residential
    
 
-
      
 
-
      
 
-
      
 
-
      
 
-
  
Nonresidential
    
 
955
      
 
955
      
 
310
      
 
969
      
 
25
  
Commercial
    
 
129
      
 
268
      
 
76
      
 
122
      
 
4
  
Consumer
    
 
-
      
 
-
      
 
-
      
 
-
      
 
-
  
   
$
5,327
    
$
5,496
    
$
1,593
    
$
5,334
    
$
105
  
 
 
   
Recorded Investment
    
Unpaid Principal Balance
    
Specific
Allowance
    
Average Investment
    
Interest Income Recognized
  
Total Impaired Loans:
  
Construction/Land
  
$
4,047
    
$
4,103
    
$
391
    
$
4,086
    
$
155
  
1-4 family residential
    
 
4,448
      
 
4,474
      
 
816
      
 
4,935
      
 
162
  
Multi-family residential
    
 
1,013
      
 
1,013
      
 
-
      
 
1,035
      
 
25
  
Nonresidential
    
 
3,315
      
 
3,569
      
 
310
      
 
3,844
      
 
96
  
Commercial
    
 
379
      
 
519
      
 
76
      
 
342
      
 
16
  
Consumer
    
 
8
      
 
9
      
 
-
      
 
9
      
 
1
  
   
$
13,210
    
$
13,687
    
$
1,593
    
$
14,251
    
$
455
  
 
For 2014, interest income recognized on a cash basis included above was $292,000.
 
The following tables present information pertaining to the principal balances and specific valuation allocations for impaired loans as of December 31, 2013, as well as the average recorded investment and interest income recognized on impaired loans for the year ended December 31, 2013:
   
Recorded Investment
    
Unpaid Principal Balance
    
Specific
Allowance
    
Average Investment
    
Interest Income Recognized
  
Impaired loans without
a specific allowance:
  
Construction/Land
  
$
2,286
    
$
2,516
    
$
-
    
$
2,559
    
$
120
  
1-4 family residential
    
 
4,154
      
 
4,184
      
 
-
      
 
3,633
      
 
172
  
Multi-family residential
    
 
52
      
 
53
      
 
-
      
 
52
      
 
3
  
Nonresidential
    
 
3,194
      
 
3,672
      
 
-
      
 
3,148
      
 
179
  
Commercial
    
 
237
      
 
395
      
 
-
      
 
310
      
 
15
  
Consumer
    
 
-
      
 
-
      
 
-
      
 
11
      
 
1
  
   
$
9,923
    
$
10,820
    
$
-
    
$
9,713
    
$
490
  
 
   
Recorded Investment
    
Unpaid Principal Balance
    
Specific
Allowance
    
Average Investment
    
Interest Income Recognized
  
Impaired loans with
a specific allowance:
  
Construction/Land
  
$
1,818
    
$
1,831
    
$
195
    
$
1,863
    
$
18
  
1-4 family residential
    
 
1,763
      
 
1,784
      
 
552
      
 
1,490
      
 
31
  
Multi-family residential
    
 
1,022
      
 
1,038
      
 
196
      
 
1,031
      
 
21
  
Nonresidential
    
 
902
      
 
902
      
 
97
      
 
769
      
 
24
  
Commercial
    
 
135
      
 
143
      
 
68
      
 
135
      
 
14
  
Consumer
    
 
-
      
 
-
      
 
-
      
 
-
      
 
-
  
   
$
5,640
    
$
5,698
    
$
1,108
    
$
5,288
    
$
108
  
 
   
Recorded Investment
    
Unpaid Principal Balance
    
Specific
Allowance
    
Average Investment
    
Interest Income Recognized
  
Total Impaired Loans:
  
Construction/Land
  
$
4,104
    
$
4,347
    
$
195
    
$
4,422
    
$
138
  
1-4 family residential
    
 
5,917
      
 
5,968
      
 
552
      
 
5,123
      
 
203
  
Multi-family residential
    
 
1,074
      
 
1,091
      
 
196
      
 
1,083
      
 
24
  
Nonresidential
    
 
4,096
      
 
4,574
      
 
97
      
 
3,917
      
 
203
  
Commercial
    
 
372
      
 
538
      
 
68
      
 
445
      
 
29
  
Consumer
    
 
-
      
 
-
      
 
-
      
 
11
      
 
1
  
   
$
15,563
    
$
16,518
    
$
1,108
    
$
15,001
    
$
598
  
 
For 2013, interest income recognized on a cash basis included above was $364,000.
 
Troubled Debt Restructurings
In the course of working with borrowers, the Corporation may choose to restructure the contractual terms of certain loans. In restructuring the loan, the Corporation attempts to work out an alternative payment schedule with the borrower in order to optimize collectibility of the loan. Any loans that are modified, whether through a new agreement replacing the old or via changes to an existing loan agreement, are reviewed by the Corporation to identify if a troubled debt restructuring (“TDR”) has occurred. A troubled debt restructuring occurs when, for economic or legal reasons related to a borrower’s financial difficulties, the Corporation grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status, and the restructuring of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms, or a combination of the two. If such efforts by the Corporation do not result in a satisfactory arrangement, the loan is referred to legal counsel, at which time foreclosure proceedings are initiated. At any time prior to a sale of the property at foreclosure, the Corporation may terminate foreclosure proceedings if the borrower is able to work out a satisfactory payment plan.
Nonaccrual loans, including TDRs that have not met the six month minimum performance criterion, are reported in this report as non-performing loans. On at least a quarterly basis, the Corporation reviews all TDR loans to determine if the loan meets this criterion. A loan is generally classified as nonaccrual when the Corporation believes that receipt of principal and interest is questionable under the terms of the loan agreement. Most generally, this is at 90 or more days past due.
For all loan classes, it is the Corporation’s policy to have any restructured loans which are on nonaccrual status prior to being restructured remain on nonaccrual status until six months of satisfactory borrower performance, at which time management would consider their return to accrual status.
Loans reported as TDR as of December 31, 2014 totaled $9.0 million. TDR loans reported as nonaccrual (non-performing) loans, and included in total nonaccrual (non-performing) loans, were $6.6 million at December 31, 2014. The remaining TDR loans, totaling $2.4 million, were accruing at December 31, 2014 and reported as performing loans.
All TDRs are considered impaired by the Corporation for the life of the loan and reflected so in the Corporation’s analysis of the allowance for credit losses. As a result, the determination of the amount of impaired loans for each portfolio segment within troubled debt restructurings is the same as detailed previously above.
At December 31, 2014, the Corporation had a number of loans that were modified in troubled debt restructurings and impaired. The modification of terms of such loans included one or a combination of the following: an extension of maturity, a reduction of the stated interest rate or a permanent reduction of the recorded investment in the loan.
The following tables present information regarding troubled debt restructurings, by class as of December 31, 2014 and December 31, 2013, and new troubled debt restructuring for the years ended December 31, 2014 and December 31, 2013.
   
At December 31, 2014
    
For the Year Ended December 31, 2014
  
   
# of Loans
    
Total Troubled Debt Restructured
    
# of Loans
    
Pre-Modification Recorded Balance
    
Post-Modification Recorded Balance
  
                     
Construction/Land
    
9
    
$
3,965
      
4
    
$
1,867
    
$
1,979
  
One-to-four family residential
    
11
      
2,800
      
6
      
2,722
      
2,722
  
Multi-family residential
    
1
      
1,013
      
1
      
1,008
      
1,014
  
Nonresidential and agricultural land
    
2
      
951
      
2
      
174
      
176
  
Commercial
    
8
      
262
      
7
      
192
      
258
  
Consumer
    
1
      
9
      
1
      
-
      
8
  
     
32
    
$
9,000
      
21
    
$
5,963
    
$
6,157
  
 
   
At December 31, 2013
    
For the Year Ended December 31, 2013
  
   
# of Loans
    
Total Troubled Debt Restructured
    
# of Loans
    
Pre-Modification Recorded Balance
    
Post-Modification Recorded Balance
  
                     
Construction/Land
    
11
    
$
4,032
      
8
    
$
2,031
    
$
2,403
  
One-to-four family residential
    
12
      
3,628
      
7
      
758
      
777
  
Multi-family residential
    
1
      
1,022
      
-
      
-
      
-
  
Nonresidential and agricultural land
    
4
      
1,487
      
-
      
-
      
-
  
Commercial
    
8
      
266
      
4
      
55
      
69
  
Consumer
    
-
      
-
      
-
      
-
      
-
  
     
36
    
$
10,435
      
19
    
$
2,844
    
$
3,249
  
 
 
The following tables present information regarding post-modification balances of newly restructured troubled debt by type of modification as of December 31, 2014 and December 31, 2013.
 
December 31, 2014
  
Interest Only
    
Term
    
Combination
    
Total
Modifications
  
                 
Construction/Land
  
$
87
    
$
113
    
$
1,779
    
$
1,979
  
One-to-four family residential
    
-
      
592
      
2,130
      
2,722
  
Multi-family residential
    
-
      
-
      
1,014
      
1,014
  
Nonresidential
    
-
      
-
      
176
      
176
  
Commercial
    
-
      
-
      
258
      
258
  
Consumer
    
-
      
-
      
8
      
8
  
   
$
87
    
$
705
    
$
5,365
    
$
6,157
  
 
December 31, 2013
  
Interest Only
    
Term
    
Combination
    
Total
Modifications
  
                 
Construction/Land
  
$
-
    
$
138
    
$
2,265
    
$
2,403
  
One-to-four family residential
    
-
      
204
      
573
      
777
  
Multi-family residential
    
-
      
-
      
-
      
-
  
Nonresidential
    
-
      
-
      
-
      
-
  
Commercial
    
-
      
-
      
69
      
69
  
Consumer
    
-
      
-
      
-
      
-
  
   
$
-
    
$
342
    
$
2,907
    
$
3,249
  
 
One one-to-four family residential loan restructured during 2014, with a recorded investment of $1.9 million as of December 31, 2014, was considered in default and in the process of foreclosure as of that date. No loans identified and reported as TDR during the year ended December 31, 2013, were considered in default during the period.
The Corporation defines default in this instance as being either past due 90 days or more at the end of the quarter or in the legal process of foreclosure.
Of the $6.2 million of new debt restructurings reported above, $4.5 million were for renewals of TDR reported in prior years, $1.2 million were for new debt replacing an existing TDR also reported in prior years, and $456,000 were for new debt not previously reported in prior years.
Financial impact of these restructurings was immaterial to the financials of the Corporation at December 31, 2014 and 2013.