NOTE 5 – Troubled Debt Restructurings

At June 30, 2017, the Company had 18 loans totaling $6.8 million compared to 17 loans totaling $6.7 million at December 31, 2016, 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 four commercial loans previously classified as TDRs to accrual status.

During the three months ended June 30, 2017, the Company reduced or deferred payments on one commercial business loan whose modification was considered a TDR. The recorded investment in the loan before modification was $229,000 and the loan’s recorded investment following modification was $238,000. 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 six months ended June 30, 2017 and the three and six months ended 2016, respectively.


	For the six months ended June 30, 2017
						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
Business	1	1	-	-	2	$	378	$	387
Total loans	1	1	-	-	2	$	378	$	387

	For the three and six months ended June 30, 2016
						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
Business	1	-	-	-	1	$	2,381	$	2,381
Consumer
Other	2	-	-	-	2		110		114
Total loans	3	-	-	-	3	$	2,491	$	2,495

As of June 30, 2017 and 2016, there were no loans modified as TDRs for which there was a payment default (60 days past due) within 12 months of the restructuring date.