NOTE 5 – Troubled Debt Restructurings

At September 30, 2015, the Company had 31 loans totaling $8.1 million compared to 37 loans totaling $9.7 million at December 31, 2014, which were 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 the workout plan for individual loan relationships, the Company may restructure loan terms to assist borrowers facing financial challenges in the current economic environment. To date, the Company has 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 the Company’s TDRs before and after their modification during the nine months ended September 30, 2015 and 2014, respectively.


	For the nine months ended September 30, 2015
(dollars in thousands)		Renewals deemed a concession	Reduced or deferred payments	Converted to interest only	Maturity date extensions	Total Number of loans	Pre- modification outstanding recorded investment		Post- modification outstanding recorded investment
Commercial
Owner occupied RE		-	-	-	-	-	$	-	$	-
Non-owner occupied RE		1	-	-	1	2		112		112
Construction		-	-	-	-	-		-		-
Business		-	-	-	-	-		-		-
Consumer
Real estate		-	-	-	-	-		-		-
Home equity		-	-	-	-	-		-		-
Construction		-	-	-	-	-		-		-
Other		-	-	-	-	-		-		-
Total loans		1	-	-	1	2	$	112	$	112

	For the nine months ended September 30, 2014
(dollars in thousands)		Renewals deemed a concession	Reduced or deferred payments	Converted to interest only	Maturity date extensions	Total Number of loans	Pre- modification outstanding recorded investment		Post- modification outstanding recorded investment
Commercial
Owner occupied RE		-	-	-	-	-	$	-	$	-
Non-owner occupied RE		-	-	-	2	2		275		285
Construction		-	-	-	-	-		-		-
Business		1	-	-	2	3		263		263
Consumer
Real estate		-	-	1	-	1		116		116
Home equity		-	-	-	-	-		-		-
Construction		-	-	-	-	-		-		-
Other		2	-	-	-	2		126		126
Total loans		3	-	1	4	8	$	780	$	790

The following table summarizes loans modified as TDRs at September 30, 2015 and 2014 for which there was a payment default (60 days past due) within 12 months of the restructuring date.


	For the nine months ended September 30,
	2015				2014
		Number of	Recorded			Number of	Recorded
(dollars in thousands)		Loans	Investment			Loans	Investment
Commercial
Owner occupied RE		-	$	-		-	$	-
Non-owner occupied RE		-		-		-		-
Construction		-		-		-		-
Business		-		-		-		-
Consumer
Real estate		-		-		-		-
Home equity		-		-		-		-
Construction		-		-		-		-
Other		-		-		-		-
Total loans		-	$	-		-	$	-