NOTE 5 – Troubled Debt Restructurings

At September 30, 2019, the Company had 20 loans totaling $8.6 million compared to 26 loans totaling $9.3 million at December 31, 2018, 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 five commercial loans previously classified as TDRs to accrual status.

There were no loans determined to be a TDR during the three months ended September 30, 2019 and one commercial non-owner occupied real estate loan with a pre-modification and post-modification balance of $1.3 million was modified with reduced payments and determined to be a TDR during the three months ended September 30, 2018. 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 for the nine months ended September 30, 2019 and 2018.


	For the nine months ended September 30, 2019
						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
Consumer
Home equity	1	-	-	-	1	$	832	$	832
Total loans	1	-	-	-	1	$	832	$	832

	For the nine months ended September 30, 2018
						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
Owner occupied RE	1	-	-	-	1	$	506	$	592
Business	4	-	-	-	4		1,207		1,532
Consumer
Real estate	2	-	-	-	2		549		669
Total loans	7	-	-	-	7	$	2,262	$	2,793

As of September 30, 2019 and 2018, there were no loans modified as a TDR for which there was a payment default (60 days past due) within 12 months of the restructuring date.