NOTE 5 – Troubled Debt Restructurings

At December 31, 2019, we had 19 loans totaling $9.3 million and at December 31, 2018 we had 26 loans totaling $9.3 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. During 2019, we have added one commercial loan totaling $1.8 million as TDRs and removed nine loans from TDR status due to pay-offs or in accordance with our nonperforming loans and TDR policies. To date, we have restored five nonaccrual 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, 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
Commercial
Business	1	-	-	-	1	$	1,823	$	1,823
Total loans	1	1	-	-	1	$	1,823	$	1,823

	For the year ended December 31, 2018
						Pre-		Post-
						modification		modification
	Renewals	Reduced	Converted	Maturity	Total	outstanding		outstanding
	deemed a	or deferred	to interest	date	number	recorded		recorded
	concession	payments	only	extensions	of loans	investment		Investment
Commercial
Owner occupied RE	1	-	-	-	1	$	506	$	592
Non-owner occupied RE	-	1	-	-	1		1,287		1,287
Business	4	-	-	-	4		1,207		1,532
Consumer
Real estate	2	-	-	-	2		549		669
Total loans	7	1	-	-	8	$	3,549	$	4,080

As of December 31, 2019 and 2018 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.