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TROUBLED DEBT RESTRUCTURINGS

12 Months Ended

Dec. 31, 2017

NOTE 8 TROUBLED DEBT RESTRUCTURINGS

At December 31, 2017 loans classified as troubled debt restructurings totaled $6.9 million compared to $9.6 million at December 31, 2016. The following table presents information related to loans modified as troubled debt restructurings during the years ended December 31, 2017 and 2016.

	December 31, 2017					December 31, 2016
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	$	341	$	336
Construction and land Development	-		-		-	-		-		-
Residential 1-4 family	-		-		-	2		420		402
Multifamily	-		-		-	-		-		-
Farmland	-		-		-	1		291		268
Total real estate loans	-		-		-	4		1,052		1,006
Commercial	1		443		437	-		-		-
Agriculture	-		-		-	-		-		-
Consumer installment loans	-		-		-	-		-		-
All other loans	-		-		-	-		-		-
Total	1	$	443	$	437	4	$	1,052	$	1,006

During the year ended 2017, the Company modified the terms of one loan for which the modification was considered to be a troubled debt restructuring. The interest rate was not modified on this loan; however, the payment terms and maturity date were changed. During the year ended 2016, the Company modified four loans that were considered to be troubled debt restructurings. On one loan, the interest rate and maturity date were not modified; however, the payment terms were changed. On one loan, the interest rate was lowered and the payment terms were changed. On two loans, the interest rate was lowered and the payment terms and maturity date were changed.

No loans modified as troubled debt restructurings defaulted during the year ended December 31, 2017. One commercial real estate loan with a recorded investment of $211 thousand that had been modified as a troubled debt restructuring defaulted during the year ended December 31, 2016, which was within twelve months of the loan’s 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.