TROUBLED DEBT RESTRUCTURINGS

6 Months Ended

Jun. 30, 2020

Troubled Debt Restructurings

TROUBLED DEBT RESTRUCTURINGS

NOTE 8 TROUBLED DEBT RESTRUCTURINGS

There were $5.2 million in loans that were classified as troubled debt restructurings at June 30, 2020 and $4.3 million at December 31, 2019. All loans considered to be troubled debt restructurings are individually evaluated for impairment as part of the allowance for loan losses calculation.

The following table presents information related to loans modified as troubled debt restructurings during the six and three months ended June 30, 2020 and 2019.

	For the six months ended June 30, 2020						For the six months ended June 30, 2019
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		3	$	190	$	190		—	$	—	$	—
Construction and land Development		—		—		—		—		—		—
Residential 1-4 family		26		1,204		1,204		—		—		—
Multifamily		—		—		—		—		—		—
Farmland		—		—		—		1		281		281
Total real estate loans		29		1,394		1,394		—		—		—
Commercial								—		—		—
Agriculture		—		—		—		—		—		—
Consumer installment loans		2		7		7		—		—		—
All other loans		—		—		—		—		—		—
Total		31	$	1,401	$	1,401		1	$	281	$	281

	For the three months ended June 30, 2020						For the three months ended June 30, 2019
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		3	$	190	$	190		—	$	—	$	—
Construction and land Development		—		—		—		—		—		—
Residential 1-4 family		26		1,204		1,204		—		—		—
Multifamily		—		—		—		—		—		—
Farmland		—		—		—		1		281		281
Total real estate loans		29		1,394		1,394		—		—		—
Commercial								—		—		—
Agriculture		—		—		—		—		—		—
Consumer installment loans		2		7		7		—		—		—
All other loans		—		—		—		—		—		—
Total		31	$	1,401	$	1,401		1	$	281	$	281

During the three months ended June 30, 2020, the Company modified 31 loans for which the modification was considered to be a troubled debt restructuring. The payment terms of these loans were modified to defer payments for 90 days. No modified loans were considered to be troubled debt restructurings during the first three months of 2020.

During the three months ended June 30, 2019, the Company modified one loan for which the modification was considered to be a troubled debt restructuring. This loan is secured by farmland and the modification is related to a court-ordered payment plan. No modified loans were considered to be troubled debt restructurings during the first three months of 2019.

During the three months ended June 30, 2020, no loans previously modified as troubled debt restructurings defaulted. One loan previously modified as a troubled debt restructuring, with a balance of $663 thousand, defaulted during the first three months of 2020.

No loans modified as troubled debt restructurings defaulted during the three or six months ended June 30, 2019. Generally, a troubled debt restructuring is considered to be in default once it becomes 90 days or more past due following a modification.

In determining 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 write down the carrying value of the loan.