8. TROUBLED DEBT RESTRUCTURINGS

12 Months Ended

Dec. 31, 2015

Notes to Financial Statements

8. TROUBLED DEBT RESTRUCTURINGS

NOTE 8 TROUBLED DEBT RESTRUCTURINGS:

At December 31, 2015 loans classified as troubled debt restructurings totaled $9.5 million compared to $10.0 million at December 31, 2014. The following table presents information related to loans modified as troubled debt restructurings during the years ended December 31, 2015 and 2014.

	December 31, 2015						December 31, 2014
Troubled Debt Restructurings (Dollars are in thousands)	# of Loans		Pre-Mod. Recorded Investment		Post-Mod. Recorded Investment		# of Loans		Pre-Mod. Recorded Investment		Post-Mod. Recorded Investment
Real estate secured:
Commercial		1	$	320	$	313		—	$	—	$	—
Construction and land Development		1		551		290		—		—		—
Residential 1-4 family		2		225		221		2		596		589
Multifamily		—		—		—		—		—		—
Farmland		—		—		—		2		3,340		2,596
Total real estate loans		4		1,096		824		4		3,936		3,185
Commercial		—		—		—		—		—		—
Agriculture		—		—		—		—		—		—
Consumer installment loans		—		—		—		—		—		—
All other loans		—		—		—		—		—		—
Total		4	$	1,096	$	824		4	$	3,936	$	3,185

During the year ended 2015, the Company modified four loans that were considered to be troubled debt restructurings. We modified the terms for two of these loans. For the other two troubled debt restructured loans, we modified the terms and lowered the interest rate. During the year ended 2014, the Company modified four loans that were considered to be troubled debt restructurings. We modified the terms for one of these loans and for the other three loans we modified the terms and lowered the interest rate.

There were no loans modified as troubled debt restructurings which defaulted during the years ended December 31, 2015 and 2014, and were within twelve months of their modification date. Generally, a troubled debt restructuring is considered to be in default once it becomes 90 days or more past due following a modification.

When determining the level of the allowance for loan losses, management considers troubled debt restructurings and subsequent defaults in these restructurings in its estimate. The Company evaluates all troubled debt restructurings for possible further impairment. As a result, the allowance may be increased, adjustments may be made in the allocation of the allowance, or charge-offs may be taken to further writedown the carrying value of the loan.