NOTE 8 TROUBLED DEBT RESTRUCTURINGS:

At March 31, 2014 there were $11.6 million in loans that are classified as troubled debt restructurings compared to $12.3 million at December 31, 2013. The following table presents information related to loans modified as troubled debt restructurings during the three months ended March 31, 2014 and 2013.


	For the three months ended March 31, 2014					For the three months ended March 31, 2013

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	$	288	$	288
Construction and land Development	-		-		-	-		-		-
Residential 1-4 family	-		-		-	-		-		-
Multifamily	-		-		-	-		-		-
Farmland	-		-		-	-		-		-
Total real estate loans	-		-		-	1		288		288
Commercial	-		-		-	1		51		49
Agriculture	-		-		-	-		-		-
Consumer installment loans	-		-		-	1		14		14
All other loans	-		-		-	-		-		-
Total	-	$	-	$	-	3	$	353	$	351

During the three months ended March 31, 2014, the Company modified no loans that were considered to be troubled debt restructurings. During the three months ended March 31, 2013, the Company modified 3 loans that were considered to be troubled debt restructurings. We modified the terms for 1 loan and on 2 loans we modified the terms and lowered the interest rate.

The following table presents information related to loans modified as a troubled debt restructurings that defaulted during the three months ended March 31, 2014 and 2013, and within twelve months of their modification date. A troubled debt restructuring is considered to be in default once it becomes 90 days or more past due following a modification.


Troubled Debt Restructurings	For the three months ended			For the three months ended
That Subsequently Defaulted	March 31, 2014			March 31, 2013
During the Period	# of		Recorded	# of		Recorded
(Dollars are in thousands)	Loans		Investment	Loans		Investment
Real estate secured:
Commercial	-	$	-	-	$	-
Construction and land development	-		-	-		-
Residential 1-4 family	-		-	-		-
Multifamily	-		-	-		-
Farmland	-		-	-		-
Total real estate loans	-		-	-		-
Commercial	-		-	-		-
Agriculture	-		-	-		-
Consumer installment loans	-		-	-		-
All other loans	-		-	-		-
Total	-	$	-	-	$	-

In determination 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.