NOTE 4 – Troubled Debt Restructurings

At December 31, 2014, we had 37 loans totaling $9.7 million and at December 31, 2013 we had 34 loans totaling $13.0 million, which we considered as TDRs. The Company considers a loan to be a TDR when the debtor experiences financial difficulties and the Company grants a concession to the debtor that it would not normally consider. Concessions can relate to the contractual interest rate, maturity date, or payment structure of the note. As part of our workout plan for individual loan relationships, we may restructure loan terms to assist borrowers facing challenges in the current economic environment. To date, we have restored three commercial loans previously classified as TDRs to accrual status.

The following table summarizes the concession at the time of modification and the recorded investment in our TDRs before and after their modification.


	For the year ended December 31, 2014
						Pre-		Post-
						modification		modification
	Renewals	Reduced	Converted	Maturity	Total	outstanding		outstanding
	deemed a	or deferred	to interest	date	number	recorded		recorded
(dollars in thousands)	concession	payments	only	extensions	of loans	investment		Investment
Commercial
Non-owner occupied RE	-	-	-	2	2	$	275	$	285
Construction	1	-	-	-	1		1,292		1,412
Business	1	-	-	2	3		263		263
Consumer
Real estate	-	-	1	-	1		116		116
Other	2	-	-	-	2		126		126
Total loans	4	-	1	4	9	$	2,072	$	2,202

	For the year ended December 31, 2013
						Pre-		Post-
						modification		modification
	Renewals	Reduced	Converted	Maturity	Total	outstanding		outstanding
	deemed a	or deferred	to interest	date	number	recorded		recorded
(dollars in thousands)	concession	payments	only	extensions	of loans	investment		Investment
Commercial
Non-owner occupied RE	1	-	-	-	1	$	276	$	321
Business	9	-	-	-	9		1,805		1,885
Consumer
Real estate	1	-	-	-	1		831		835
Other	1				1		4		4
Total loans	12	-	-	-	12	$	2,916	$	3,045

The following table summarizes loans modified as TDRs at December 31, 2014 and 2013 for which there was a payment default (60 days past due) within 12 months of the restructuring date.


	For the year ended December 31, 2014
	Number of	Recorded
(dollars in thousands)	loans	investment
Commercial
Non-owner occupied RE	1	$	246
Total loans	1	$	246

	For the year ended December 31, 2013
	Number of	Recorded
(dollars in thousands)	loans	investment
Consumer
Real estate	1	$	579
Total loans	1	$	579