7. TROUBLED DEBT RESTRUCTURINGS

At March 31, 2013, there were 26 loans and leases that were considered to be troubled debt restructurings. Of these loans and leases, 13 were modified and are currently performing (less than ninety days past due) totaling $7,300,000 and 13 are considered nonperforming (and included in the $4,811,000 discussed in Note 6), totaling $2,322,000. Of the 13 TDRs considered nonperforming, six are current to the modified terms. At March 31, 2013 and December 31, 2012, there were no unfunded commitments on those loans considered troubled debt restructures. See also “Impaired Loans and Leases” in Item 2.

The Company has allocated $1,160,000 and $1,575,000 of specific reserves to loans whose terms have been modified as troubled debt restructurings as of March 31, 2013 and December 31, 2012.

During the three-month period ended March 31, 2013, the terms of one loan were modified as a troubled debt restructuring. The modification of the terms of such loan was an extension of the maturity date with an interest rate lower than the original loan rate.

The following table presents loans by class modified as troubled debt restructurings during the three months ended March 31, 2013 (dollars in thousands):

			Pre-		Post-
			Modification		Modification
			Outstanding		Outstanding
	Number		Recorded		Recorded
	of Loans		Investment		Investment

Troubled debt restructurings:
Real estate – commercial		1	$	438	$	438
Real estate – multi-family		—		—		—
Total		1	$	438	$	438

The troubled debt restructurings described above increased the allowance for loan and lease losses by $50,000 and resulted in no charge offs during the three months ended March 31, 2013.

The following table presents loans by class modified as troubled debt restructurings during the three months ended March 31, 2012:

			Pre-		Post-
			Modification		Modification
			Outstanding		Outstanding
	Number		Recorded		Recorded
	of Loans		Investment		Investment

Troubled debt restructurings:
Commercial		1	$	47	$	47
Real estate – commercial		2		2,210		2,210
Real estate – multi-family		1		265		265
Real estate – residential		3		921		808
Other – agriculture		1		410		410
Other – consumer		2		31		31
Total		10	$	3,884	$	3,771

The troubled debt restructurings described above increased the allowance for loan and lease losses by $40,000 and resulted in charge offs of $113,000 during the three months ended March 31, 2012.

The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the three months ended March 31, 2012:

	Number		Recorded
	of Loans		Investment
Troubled debt restructurings that subsequently defaulted:
Commercial		1	$	863
Real estate – commercial		4		1,260

Total		5	$	2,123

There were no payment defaults during the three months ended March 31, 2013 on troubled debt restructurings made in the preceding twelve months.