Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4. Loans The following table summarizes loans receivable, net, by category at September 30, 2015 and December 31, 2014: September 30, December 31, (in thousands) 2015 2014 Residential real estate $ 129,444 $ 122,832 Commercial real estate 249,526 233,473 Construction, land acquisition and development 25,516 18,835 Commercial and industrial 142,425 132,057 Consumer 132,418 122,092 State and political subdivisions 42,219 40,205 Total loans, gross 721,548 669,494 Unearned income (104 ) (98 ) Net deferred loan costs 1,722 871 Allowance for loan and lease losses (9,825 ) (11,520 ) Loans, net $ 713,341 $ 658,747 The Company has granted loans, letters of credit and lines of credit to certain executive officers and directors of the Company as well as to certain related parties of executive officers and directors. These loans, letters of credit and lines of credit were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and, when made, did not involve more than the normal risk of collectability. See Note 11 to these consolidated financial statements for more information about related party transactions. The Company originates one- to four-family mortgage loans for sale in the secondary market. During the three and nine month periods ended September 30, 2015, the Company sold $0.3 million and $1.9 million, respectively, of one- to four-family mortgages. The Company retains servicing rights on these mortgages. During 2015, as part of its asset/liability management strategy, the Company opted to retain up to $10.0 million in residential mortgages in the loan portfolio. Based on a change in strategy during the third quarter, the Company elected to transfer $4.6 million of loans previously retained in the portfolio to held for sale at September 30, 2015 and to sell, on the secondary market, all eligible residential mortgages originated going forward. The Company had $4.6 million and $603 thousand in residential mortgage loans held-for-sale at September 30, 2015 and December 31, 2014, respectively. The Company sold substantially all of its education loans, which are categorized as consumer loans, to a third party during the nine months ended September 30, 2014. The education loans had a recorded investment of $2.6 million at the time of sale. The Company recognized a loss of $13 thousand upon the sale of these loans which is included in non-interest income for the nine months ended September 30, 2014. The Company does not have any lending programs commonly referred to as subprime lending. Subprime lending generally targets borrowers with weakened credit histories typically characterized by payment delinquencies, previous charge-offs, judgments, bankruptcies, or borrowers with questionable repayment capacity as evidenced by low credit scores or high debt-burden ratios. See Note 2 to the Company’s consolidated financial statements included in the 2014 Form 10-K for information about the risk characteristics related to the Company’s loan segments. The Company provides for loan losses based on the consistent application of its documented ALLL methodology. Loan losses are charged to the ALLL and recoveries are credited to it. Additions to the ALLL are provided by charges against income based on various factors which, in management’s judgment, deserve current recognition of estimated probable losses. Loan losses are charged-off in the period the loans, or portions thereof, are deemed uncollectible. Generally, the Company will record a loan charge-off (including a partial charge-off) to reduce a loan to the estimated recoverable amount based on its methodology detailed below. The Company regularly reviews the loan portfolio and makes adjustments for loan losses in order to maintain the ALLL in accordance with GAAP. The ALLL consists primarily of the following two components: (1) Specific allowances are established for impaired loans, which are defined by the Company as all loan relationships with an aggregate outstanding balance greater than $100 thousand that are rated substandard and on non-accrual status, rated doubtful or loss, and all troubled debt restructured loans (“TDRs”). The amount of impairment provided for as an allowance is represented by the deficiency, if any, between the carrying value of the loan and either (a) the present value of expected future cash flows discounted at the loan’s effective interest rate, (b) the loan’s observable market price, or (c) the fair value of the underlying collateral, less estimated costs to sell, for collateral dependent loans. Impaired loans that have no impairment losses are not considered for general valuation allowances described below. If the Company determines that collection of the impairment amount is remote, the Company will record a charge-off. (2) General allowances are established for loan losses on a portfolio basis for loans that do not meet the definition of impaired. The Company divides its portfolio into loan segments for loans exhibiting similar characteristics. Loans rated special mention or substandard and accruing, which are embedded in these loan segments, are then separated from these loan segments. These loans are then subject to an analysis placing increased emphasis on the credit risk associated with these specific loans. The Company applies an estimated loss rate to each loan segment. The loss rates applied are based on the Company’s own historical loss experience based on the loss rate for each segment of loans with similar risk characteristics in its portfolio. In addition, management evaluates and applies certain qualitative or environmental factors that are likely to cause estimated credit losses associated with the Company’s existing portfolio to differ from historical experience, which are discussed below. This evaluation is inherently subjective, as it requires material estimates that may be susceptible to significant revisions based upon changes in economic and real estate market conditions. Actual loan losses may be significantly more than the ALLL that is established, which could have a material negative effect on the Company’s operating results or financial condition. Management makes adjustments for loan losses based on its evaluation of several qualitative and environmental factors, including but not limited to: ● changes in national, local, and business economic conditions and developments, including the condition of various market segments; ● changes in the nature and volume of the Company’s loan portfolio; ● changes in the Company’s lending policies and procedures, including underwriting standards, collection, charge-off and recovery practices and results; ● changes in the experience, ability and depth of the Company’s lending management and staff; ● changes in the quality of the Company's loan review system and the degree of oversight by the Company’s Board of Directors; ● changes in the trend of the volume and severity of past due and classified loans, including trends in the volume of non-accrual loans, troubled debt restructurings and other loan modifications; ● the existence and effect of any concentrations of credit and changes in the level of such concentrations; ● the effect of external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the Company's current loan portfolio; and ● analysis of customers’ credit quality, including knowledge of their operating environment and financial condition. Each quarter, management evaluates the ALLL and adjusts the ALLL as appropriate through a provision for loan losses. While the Company uses the best information available to make evaluations, future adjustments to the ALLL may be necessary if conditions differ substantially from the information used in making the evaluations. In addition, as an integral part of its examination process, the OCC periodically reviews the Company’s ALLL. The OCC may require the Company to adjust the ALLL based on its analysis of information available to it at the time of its examination. Based on its evaluation of the ALLL, management established an unallocated reserve of $68 thousand and $45 thousand at September 30, 2015 and December 31, 2014, respectively. As previously mentioned, as part of its evaluation, management applies loss rates to each loan segment of the loan portfolio for each quarter over the previous three years, which have resulted in overall negative historical loss factors and consequently related negative provisions for the commercial and industrial loan segment at September 30, 2015 and the construction, land acquisition and development loan segment at December 31, 2014. Based on the higher risk characteristics inherent in this segment of the portfolio, management reversed the negative provisions related to the negative historical loss factors and established the unallocated reserves. The following table summarizes activity in the ALLL, by loan category, for the three and nine months ended September 30, 2015 and 2014: Real Estate (in thousands) Residential Commercial Construction, Land Acquisition and Commercial Consumer State and Unallocated Total Three months ended September 30, 2015: Allowance for loan losses: Beginning balance, July 1, 2015 $ 1,484 $ 4,041 $ 778 $ 1,878 $ 1,643 $ 504 $ - $ 10,328 Charge-offs (66 ) - (683 ) (21 ) (198 ) - - (968 ) Recoveries 23 278 - 140 215 - - 656 Provisions (credits) (132 ) (84 ) 874 (738 ) (147 ) (32 ) 68 (191 ) Ending balance, September 30, 2015 $ 1,309 $ 4,235 $ 969 $ 1,259 $ 1,513 $ 472 $ 68 $ 9,825 Three months ended September 30, 2014: Allowance for loan losses: Beginning balance, July 1, 2014 $ 2,112 $ 5,133 $ 923 $ 1,758 $ 1,681 $ 568 $ - $ 12,175 Charge-offs (67 ) - - (22 ) (270 ) - - (359 ) Recoveries 9 - - 69 58 - - 136 Provisions (credits) (307 ) 128 (148 ) - 258 15 - (54 ) Ending balance, September 30, 2014 $ 1,747 $ 5,261 $ 775 $ 1,805 $ 1,727 $ 583 $ - $ 11,898 Nine months ended September 30, 2015: Allowance for loan losses: Beginning balance, January 1, 2015 $ 1,772 $ 4,663 $ 665 $ 2,104 $ 1,673 $ 598 $ 45 $ 11,520 Charge-offs (135 ) (912 ) (689 ) (163 ) (538 ) - - (2,437 ) Recoveries 34 296 - 307 445 - - 1,082 Provisions (credits) (362 ) 188 993 (989 ) (67 ) (126 ) 23 (340 ) Ending balance, September 30, 2015 $ 1,309 $ 4,235 $ 969 $ 1,259 $ 1,513 $ 472 $ 68 $ 9,825 Nine months ended September 30, 2014: Allowance for loan losses: Beginning balance, January 1, 2014 $ 2,287 $ 6,017 $ 924 $ 2,321 $ 1,789 $ 679 $ - $ 14,017 Charge-offs (152 ) - - (172 ) (637 ) - - (961 ) Recoveries 79 355 3,539 195 303 - - 4,471 Provisions (credits) (467 ) (1,111 ) (3,688 ) (539 ) 272 (96 ) - (5,629 ) Ending balance, September 30, 2014 $ 1,747 $ 5,261 $ 775 $ 1,805 $ 1,727 $ 583 $ - $ 11,898 The following table represents the allocation of the ALLL and the related loan balance, by loan category, disaggregated based on the impairment methodology at September 30, 2015 and December 31, 2014: Real Estate (in thousands) Residential Commercial Construction, Commercial Consumer State and Unallocated Total September 30, 2015 Allowance for loan losses: Individually evaluated for impairment $ 5 $ 303 $ - $ - $ 2 $ - $ - $ 310 Collectively evaluated for impairment 1,304 3,932 969 1,259 1,511 472 68 9,515 Total $ 1,309 $ 4,235 $ 969 $ 1,259 $ 1,513 $ 472 $ 68 $ 9,825 Loans receivable: Individually evaluated for impairment $ 2,386 $ 7,470 $ 704 $ 207 $ 353 $ - $ - $ 11,120 Collectively evaluated for impairment 127,058 242,056 24,812 142,218 132,065 42,219 - 710,428 Total $ 129,444 $ 249,526 $ 25,516 $ 142,425 $ 132,418 $ 42,219 $ - $ 721,548 December 31, 2014 Allowance for loan losses: Individually evaluated for impairment $ 51 $ 331 $ 1 $ - $ 1 $ - $ - $ 384 Collectively evaluated for impairment 1,721 4,332 664 2,104 1,672 598 45 11,136 Total $ 1,772 $ 4,663 $ 665 $ 2,104 $ 1,673 $ 598 $ 45 $ 11,520 Loans receivable: Individually evaluated for impairment $ 2,487 $ 6,660 $ 256 $ 32 $ 361 $ - $ - $ 9,796 Collectively evaluated for impairment 120,345 226,813 18,579 132,025 121,731 40,205 - 659,698 Total $ 122,832 $ 233,473 $ 18,835 $ 132,057 $ 122,092 $ 40,205 $ - $ 669,494 Credit Quality Indicators – Commercial Loans Management continuously monitors the credit quality of the Company’s commercial loans by regularly reviewing certain credit quality indicators. Management utilizes credit risk ratings as the key credit quality indicator for evaluating the credit quality of the Company’s loan receivables. The Company’s commercial loan classification and credit grading processes are part of the lending, underwriting, and credit administration functions to ensure an ongoing assessment of credit quality. Accurate and timely loan classification and credit grading is a critical component of loan portfolio management. Loan officers are required to review their loan portfolio risk ratings regularly for accuracy. The loan review function uses the same risk rating system in the loan review process. Quarterly, the Company engages an independent third party to assess the quality of the loan portfolio and evaluate the accuracy of ratings with the loan officer’s and management’s assessment. A formal loan classification and credit grading system reflects the risk of default and credit losses. A written description of the risk ratings is maintained that includes a discussion of the factors used to assign appropriate classifications of credit grades to loans. The process identifies groups of loans that warrant the special attention of management. The risk grade groupings provide a mechanism to identify risk within the loan portfolio and provide management and the Board with periodic reports by risk category. The credit risk ratings play an important role in the establishment and evaluation of the provision for loan and lease losses and the ALLL. After determining the historical loss factor which is adjusted for qualitative and environmental factors for each portfolio segment, the portfolio segment balances that have been collectively evaluated for impairment are multiplied by the general reserve loss factor for the respective portfolio segments to determine the general reserve. Loans that have an internal credit rating of special mention or substandard follow the same process; however, the qualitative and environmental factors are further adjusted for the increased risk. The Company utilizes a loan rating system that assigns a degree of risk to commercial loans based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. Management analyzes these non-homogeneous loans individually by grading the loans as to credit risk and probability of collection for each type of loan. Commercial loans include commercial indirect auto loans which are not individually risk rated, and construction, land acquisition and development loans include residential construction loans which are also not individually risk rated. These loans are monitored on a pool basis due to their homogeneous nature as described in “Credit Quality Indicators – Other Loans” below. The Company risk rates certain residential real estate loans and consumer loans that are part of a larger commercial relationship using its credit grading system as described in “Credit Quality Indicators – Commercial Loans.” The grading system contains the following basic risk categories: 1. Minimal Risk 2. Above Average Credit Quality 3. Average Risk 4. Acceptable Risk 5. Pass - Watch 6. Special Mention 7. Substandard - Accruing 8. Substandard - Non-Accrual 9. Doubtful 10. Loss This analysis is performed on a quarterly basis using the following definitions for risk ratings: Pass - Assets rated 1 through 5 are considered pass ratings. These assets show no current or potential problems and are considered fully collectible. All such loans are considered collectively for ALLL calculation purposes. However, accruing TDRs that have been performing for an extended period of time, do not represent a higher risk of loss, and have been upgraded to a pass rating are evaluated individually for impairment. Special Mention – Assets classified as special mention assets do not currently expose the Company to a sufficient degree of risk to warrant an adverse classification but do possess credit deficiencies or potential weaknesses deserving close attention. Special Mention assets have a potential weakness or pose an unwarranted financial risk which, if not corrected, could weaken the asset and increase risk in the future. Substandard - Assets classified as substandard have well defined weaknesses based on objective evidence, and are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful - Assets classified as doubtful have all of the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses present make collection or liquidation in full highly questionable and improbable based on current circumstances. Loss - Assets classified as loss are those considered uncollectible and of such little value that their continuance as assets is not warranted. Credit Quality Indicators – Other Loans Certain residential real estate loans, consumer loans, and commercial indirect auto loans are monitored on a pool basis due to their homogeneous nature. Loans that are delinquent 90 days or more are placed on non-accrual status unless the collection of the loan is in process and reasonably assured. The Company utilizes accruing versus non-accrual status as the credit quality indicator for these loan pools. The following tables present the recorded investment in loans receivable by loan category and credit quality indicator at September 30, 2015 and December 31, 2014: Credit Quality Indicators September 30, 2015 Commercial Loans Other Loans Special Subtotal Accruing Non-accrual Subtotal Total Pass Mention Substandard Doubtful Loss Commercial Loans Loans Other Loans Residential real estate $ 21,120 $ 405 $ 993 $ - $ - $ 22,518 $ 106,411 $ 515 $ 106,926 $ 129,444 Commercial real estate 224,342 13,371 11,813 - - 249,526 - - - 249,526 Construction, land acquisition and development 18,157 362 6,068 - - 24,587 929 - 929 25,516 Commercial and industrial 134,970 935 2,399 - - 138,304 4,116 5 4,121 142,425 Consumer 3,101 15 116 - - 3,232 129,045 141 129,186 132,418 State and political subdivisions 41,604 120 495 - - 42,219 - - - 42,219 Total $ 443,294 $ 15,208 $ 21,884 $ - $ - $ 480,386 $ 240,501 $ 661 $ 241,162 $ 721,548 Credit Quality Indicators December 31, 2014 Commercial Loans Other Loans Special Subtotal Accruing Non-accrual Subtotal Total Pass Mention Substandard Doubtful Loss Commercial Loans Loans Other Loans Residential real estate $ 19,892 $ 451 $ 1,077 $ - $ - $ 21,420 $ 100,576 $ 836 $ 101,412 $ 122,832 Commercial real estate 204,252 13,217 16,004 - - 233,473 - - - 233,473 Construction, land acquisition and development 10,910 1,423 5,566 - - 17,899 936 - 936 18,835 Commercial and industrial 122,261 1,962 2,397 - - 126,620 5,437 - 5,437 132,057 Consumer 3,414 - 125 - - 3,539 118,377 176 118,553 122,092 State and political subdivisions 38,685 925 595 - - 40,205 - - - 40,205 Total $ 399,414 $ 17,978 $ 25,764 $ - $ - $ 443,156 $ 225,326 $ 1,012 $ 226,338 $ 669,494 Included in loans receivable are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the borrowers. The recorded investment in these non-accrual loans was $6.7 million and $5.5 million at September 30, 2015 and December 31, 2014, respectively. Generally, loans are placed on non-accrual status when they become 90 days or more delinquent, and remain on non-accrual status until they are brought current, have six months of performance under the loan terms, and factors indicating reasonable doubt about the timely collection of payments no longer exist. Therefore, loans may be current in accordance with their loan terms, or may be less than 90 days delinquent and still be on a non-accrual status. There were no loans past due 90 days or more and still accruing at September 30, 2015 and December 31, 2014. The following tables present the delinquency status of past due and non-accrual loans at September 30, 2015 and December 31, 2014: September 30, 2015 Delinquency Status 0-29 Days 30-59 Days 60-89 Days >/= 90 Days (in thousands) Past Due Past Due Past Due Past Due Total Performing (accruing) loans: Real estate: Residential real estate $ 128,558 $ 147 $ 4 $ - $ 128,709 Commercial real estate 243,837 95 276 - 244,208 Construction, land acquisition and development 25,147 - - - 25,147 Total real estate 397,542 242 280 - 398,064 Commercial and industrial 141,858 250 139 - 142,247 Consumer 130,792 1,245 240 - 132,277 State and political subdivisions 42,052 167 - - 42,219 Total performing (accruing) loans 712,244 1,904 659 - 714,807 Non-accrual loans: Real estate: Residential real estate 406 63 - 266 735 Commercial real estate 1,634 - 119 3,565 5,318 Construction, land acquisition and development - 369 - - 369 Total real estate 2,040 432 119 3,831 6,422 Commercial and industrial 110 - - 68 178 Consumer 36 33 6 66 141 State and political subdivisions - - - - - Total non-accrual loans 2,186 465 125 3,965 6,741 Total loans receivable $ 714,430 $ 2,369 $ 784 $ 3,965 $ 721,548 December 31, 2014 Delinquency Status 0-29 Days 30-59 Days 60-89 Days >/= 90 Days (in thousands) Past Due Past Due Past Due Past Due Total Performing (accruing) loans: Real estate: Residential real estate $ 121,407 $ 420 $ - $ - $ 121,827 Commercial real estate 229,207 136 - - 229,343 Construction, land acquisition and development 18,740 - 95 - 18,835 Total real estate 369,354 556 95 - 370,005 Commercial and industrial 131,621 90 135 - 131,846 Consumer 120,204 1,334 378 - 121,916 State and political subdivisions 40,205 - - - 40,205 Total peforming (accruing) loans 661,384 1,980 608 - 663,972 Non-accrual loans: Real estate: Residential real estate 495 99 17 394 1,005 Commercial real estate 288 3,628 19 195 4,130 Construction, land acquisition and development - - - - - Total real estate 783 3,727 36 589 5,135 Commercial and industrial 55 - 52 104 211 Consumer 42 - 58 76 176 State and political subdivisions - - - - - Total non-accrual loans 880 3,727 146 769 5,522 Total loans receivable $ 662,264 $ 5,707 $ 754 $ 769 $ 669,494 The following tables present a distribution of the recorded investment, unpaid principal balance and the related allowance for the Company’s impaired loans, which have been analyzed for impairment under ASC 310, at September 30, 2015 and December 31, 2014. Non-accrual loans, other than TDRs, with aggregate loan relationship balances less than the $100 thousand loan relationship threshold are not evaluated individually for impairment and are accordingly not included in the following tables. However, these loans are evaluated collectively for impairment as homogenous pools in the general allowance under ASC Topic 450. Total non-accrual loans, other than TDRs, with balances less than the $100 thousand loan relationship threshold, that were evaluated under ASC Topic 450 amounted to $0.7 million and $1.0 million at September 30, 2015 and December 31, 2014, respectively. September 30, 2015 Unpaid Recorded Principal Related (in thousands) Investment Balance Allowance With no allowance recorded: Real estate: Residential real estate $ 819 $ 890 $ - Commercial real estate 5,462 7,089 - Construction, land acquisition and development 704 1,052 - Total real estate 6,985 9,031 - Commercial and industrial 207 236 - Consumer - - - State and political subdivisions - - - Total impaired loans with no related allowance recorded 7,192 9,267 - With a related allowance recorded: Real estate: Residential real estate 1,567 1,567 5 Commercial real estate 2,008 2,008 303 Construction, land acquisition and development - - - Total real estate 3,575 3,575 308 Commercial and industrial - - - Consumer 353 353 2 State and political subdivisions - - - Total impaired loans with a related allowance recorded 3,928 3,928 310 Total impaired loans: Real estate: Residential real estate 2,386 2,457 5 Commercial real estate 7,470 9,097 303 Construction, land acquisition and development 704 1,052 - Total real estate 10,560 12,606 308 Commercial and industrial 207 236 - Consumer 353 353 2 State and political subdivisions - - - Total impaired loans $ 11,120 $ 13,195 $ 310 December 31, 2014 Unpaid Recorded Principal Related (in thousands) Investment Balance Allowance With no allowance recorded: Real estate: Residential real estate $ 385 $ 410 $ - Commercial real estate 4,401 5,024 - Construction, land acquisition and development 68 68 - Total real estate 4,854 5,502 - Commercial and industrial 32 59 - Consumer - - - State and political subdivisions - - - Total impaired loans with no related allowance recorded 4,886 5,561 - With a related allowance recorded: Real estate: Residential real estate 2,102 2,137 51 Commercial real estate 2,259 2,259 331 Construction, land acquisition and development 188 188 1 Total real estate 4,549 4,584 383 Commercial and industrial - - - Consumer 361 361 1 State and political subdivisions - - - Total impaired loans with a related allowance recorded 4,910 4,945 384 Total impaired loans: Real estate: Residential real estate 2,487 2,547 51 Commercial real estate 6,660 7,283 331 Construction, land acquisition and development 256 256 1 Total real estate 9,403 10,086 383 Commercial and industrial 32 59 - Consumer 361 361 1 State and political subdivisions - - - Total impaired loans $ 9,796 $ 10,506 $ 384 The total recorded investment in impaired loans, which consists of non-accrual loans with an aggregate loan relationship of greater than $100,000 and TDRs, amounted to $11.1 million and $9.8 million at September 30, 2015 and December 31, 2014, respectively. The related allowance recorded for impaired loans was $0.3 million and $0.4 million at September 30, 2015 and December 31, 2014, respectively. The following table presents the average balance and interest income recognized on impaired loans by loan category for the three and nine months ended September 30, 2015 and 2014: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Average Interest Average Interest Average Interest Average Interest (in thousands) Balance Income (1) Balance Income (1) Balance Income (1) Balance Income (1) Residential real estate $ 2,413 $ 28 $ 2,490 $ 25 $ 2,659 $ 92 $ 2,144 $ 62 Commercial real estate 7,017 24 6,628 30 6,884 82 6,613 91 Construction, land acquisition and development 459 5 273 4 465 14 293 12 Total real estate 9,889 57 9,391 59 10,008 188 9,050 165 Commercial and industrial 140 1 66 - 142 1 98 - Consumer 354 3 363 3 357 9 337 8 State and political subdivisions - - - - - - - - Total impaired loans $ 10,383 $ 61 $ 9,820 $ 62 $ 10,507 $ 198 $ 9,485 $ 173 (1) Interest income represents income recognized on performing TDRs. The additional interest income that would have been earned on non-accrual and restructured loans in accordance with their original terms approximated $112 thousand and $298 thousand for the three and nine months ended September 30, 2015, respectively, and $100 thousand and $307 thousand for the three and nine months ended September 30, 2014, respectively. Troubled Debt Restructured Loans TDRs at September 30, 2015 and December 31, 2014 were $9.4 million and $9.0 million, respectively. Accruing and non-accruing TDRs were $5.1 million and $4.3 million, respectively at September 30, 2015 and $5.3 million and $3.7 million, respectively at December 31, 2014. Approximately $310 thousand and $346 thousand in specific reserves have been established for these loans as of September 30, 2015 and December 31, 2014, respectively. 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, capitalization of real estate taxes, or a permanent reduction of the recorded investment in the loan. The following tables show the pre- and post-modification recorded investment in loans modified as TDRs by loan category during the three and nine months ended September 30, 2015 and 2014: Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Pre-Modification Post-Modification Pre-Modification Post-Modification Number Outstanding Outstanding Number Outstanding Outstanding of Recorded Recorded of Recorded Recorded (dollars in thousands) Contracts Investments Investments Contracts Investments Investments Troubled debt restructurings: Residential real estate - $ - $ - 5 $ 810 $ 827 Commercial real estate - - - 1 1,654 742 Construction, land acquisition and development - - - 1 96 96 Commercial and industrial 1 79 79 1 79 79 Consumer - - - - - - State and political subdivisions - - - - - - Total new troubled debt restructurings 1 $ 79 $ 79 8 $ 2,639 $ 1,744 Three Months Ended September 30, 2014 Nine Months Ended September 30, 2014 Pre-Modification Post-Modification Pre-Modification Post-Modification Number Outstanding Outstanding Number Outstanding Outstanding of Recorded Recorded of Recorded Recorded (dollars in thousands) Contracts Investments Investments Contracts Investments Investments Troubled debt restructurings: Residential real estate 6 $ 411 $ 413 12 $ 780 $ 862 Commercial real estate - - - 4 238 238 Construction, land acquisition and development - - - - - - Commercial and industrial - - - - - - Consumer - - - 2 182 187 State and political subdivisions - - - - - - Total new troubled debt restructurings 6 $ 411 $ 413 18 $ 1,200 $ 1,287 During the nine months ended September 30, 2015, there was one commercial real estate loan that was modified with a recorded investment prior to modification of $1.7 million. Pursuant to the modification, management conducted an analysis and determined that there was impairment on the loan. Accordingly, the Company recorded a $912 thousand partial charge-off related to this TDR. Although the eight loans modified as TDRs during the nine months ended September 30, 2015 did not result in an increase to the specific reserve in the ALLL at September 30, 2015, charge-offs resulting from the modified TDRs totaled $912 thousand for the nine months ended September 30, 2015. The following tables present the types of modifications made during the three and nine months ended September 30, 2015 and 2014: Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 (in thousands) Extension of Term Extension of Term and Capitalization of Taxes Capitalization of Taxes Principal Forbearance Total Modifications Extension of Term Extension of Term and Capitalization of Taxes Capitalization of Taxes Principal Forbearance Total Modifications Type of modification: Residential real estate $ - $ - $ - $ - $ - $ 709 $ 118 $ - $ - $ 827 Commercial real estate - - - - - - - - 1,654 1,654 Construction, land acquisition and development - - - - - 96 - - - 96 Commercial and industrial - - - 79 79 - - - 79 79 Consumer - - - - - - - - - - State and political subdivisions - - - - - - - - - - Total modifications $ - $ - $ - $ 79 $ 79 $ 805 $ 118 $ - $ 1,733 $ 2,656 Three Months Ended September 30, 2014 Nine Months Ended September 30, 2014 (in thousands) Extension of Term Extension of Term and Capitalization of Taxes Capitalization of Taxes Principal Forbearance Total Modifications Extension of Term Extension of Term and Capitalization of Taxes Capitalization of Taxes Principal Forbearance Total Modifications Type of modification: Residential real estate $ 148 $ 40 $ - $ 225 $ 413 $ 263 $ 339 $ 35 $ 225 $ 862 Commercial real estate - - - - - 238 - - - 238 Construction, land acquisition and development - - - - - - - - - - Commercial and industrial - - - - - - - - - - Consumer - - - - - 135 52 - - 187 State and political subdivisions - - - - - - - - - - Total modifications $ 148 $ 40 $ - $ 225 $ 413 $ 636 $ 391 $ 35 $ 225 $ 1,287 There were no TDRs that re-defaulted (defined as past due 90 days) during the three months ended September 30, 2015. There was one TDR with a recorded investment of $3.5 million that re-defaulted during the nine months ended September 30, 2015. The re-default did not occur within one year of the original modification. There were no TDRs which re-defaulted during the three and nine months ended September 30, 2014 and for which the payment re-d |