Troubled Debt Restructurings

6 Months Ended

Jun. 30, 2020

Troubled Debt Restructurings [Abstract]

Troubled Debt Restructurings

NOTE 5 – Troubled Debt Restructurings

At June 30, 2020, the Company had 24 loans totaling $12.0 million compared to 19 loans totaling $9.3 million at December 31, 2019, 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. In accordance with interagency guidance, short term deferrals granted due to the COVID-19 pandemic are not considered TDRs unless the borrower was experiencing financial difficulty prior to the pandemic; however, three client relationships, with loans totaling $2.9 million, were granted short-term loan modifications which were considered TDRs due to the client experiencing financial difficulty prior to the pandemic.

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 six months ended June 30, 2020 and 2019. New TDRs for the three months ended June 30, 2020 and 2019 were not material.

	For the six months ended June 30, 2020
											Pre-		Post-
											modification		modification
	Renewals		Reduced or		Converted		Maturity		Total		outstanding		outstanding
	deemed a		deferred		to interest		date		Number		recorded		recorded
(dollars in thousands)	concession		payments		only		extensions		of loans		investment		investment
Commercial
Business		1		-		-		-		1	$	1,037	$	1,037
Consumer
Real estate		2		-		-		-		2		849		849
Home equity		3		-		-		-		3		1,522		1,522
Total loans		6		-		-		-		6	$	3,408	$	3,408

	For the six months ended June 30, 2019
											Pre-		Post-
											modification		modification
	Renewals		Reduced or		Converted		Maturity		Total		outstanding		outstanding
	deemed a		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

As of June 30, 2020 and 2019, 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.