Troubled Debt Restructurings:

Total troubled debt restructurings were $8.2 million and $8.3 million at March 31, 2014 and December 31, 2013, respectively. The Company has allocated $361 thousand and $397 thousand of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of March 31, 2014 and December 31, 2013, respectively. There are no commitments to lend additional amounts to borrowers with loans that were classified as troubled debt restructurings at March 31, 2014. There were $16 thousand in commitments to lend additional amounts to borrowers with loans that were classified as troubled debt restructurings at December 31, 2013.

During the three month periods ended March 31, 2014 and 2013, 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; a deferral of principal payments; or a legal concession.

Troubled debt restructuring modifications involved a reduction of the notes stated interest rate in the range of 0.865% and 2.75%. There were also extensions of the maturity dates on these and other troubled debt restructurings in the range of 54 months to 120 months.

The following table presents loans by class modified as troubled debt restructurings that occurred during the three month periods ended March 31, 2014 and 2013:

Three Months Ended March 31, 2014

			Pre-Modification		Post-Modification
	Number of		Outstanding Recorded		Outstanding Recorded
	Loans		Investment		Investment
Troubled Debt Restructurings:
Commercial real estate
Owner occupied		0	$	0	$	0
Non-owner occupied		1		35		35
Commercial		0		0		0
Residential real estate
1-4 family residential		9		393		394
Home equity lines of credit		2		52		52
Indirect		0		0		0
Consumer		0		0		0
Total		12	$	480	$	481

Three Months Ended March 31, 2013

			Pre-Modification		Post-Modification
	Number of		Outstanding Recorded		Outstanding Recorded
	Loans		Investment		Investment
Troubled Debt Restructurings:
Commercial real estate
Owner occupied		2	$	226	$	239
Commercial		4		486		519
Residential real estate
Home equity lines of credit		2		133		133
Total		8	$	845	$	891

There were no charge offs and a $26 thousand increase in the allowance for loan losses as a result of the allowance adjustment due to the troubled debt restructurings described above at March 31, 2014.

There were four indirect loans modified as troubled debt restructuring for which there were payment defaults within twelve months following the modification during the three month period ended March 31, 2014. Two of the four loans were past due at March 31, 2014. There was one loan that was charged off during the three month period ended March 31, 2014. There was a $1 thousand provision to the allowance for losses associated with these loans. A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms.

There were $16 thousand in charge offs and a $3 thousand increase in the allowance for loan losses as a result of the allowance adjustment due to the troubled debt restructurings described above at March 31, 2013.

There was one loan that was modified as a troubled debt restructuring for which there was a payment default within twelve months following the modification during the three month period ended March 31, 2013.