TROUBLED DEBT RESTRUCTURINGS

9 Months Ended

Sep. 30, 2020

Troubled Debt Restructurings

TROUBLED DEBT RESTRUCTURINGS

NOTE 8 TROUBLED DEBT RESTRUCTURINGS

There were $4.5 million in loans that were classified as troubled debt restructurings at September 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 nine and three months ended September 30, 2020 and 2019.

	For the nine months ended September 30, 2020						For the nine months ended September 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		27		1,236		1,236		—		—		—
Multifamily		—		—		—		—		—		—
Farmland		—		—		—		1		281		281
Total real estate loans		30		1,426		1,426		1		281		281
Commercial								—		—		—
Agriculture		—		—		—		—		—		—
Consumer installment loans		2		7		7		—		—		—
All other loans		—		—		—		—		—		—
Total		32	$	1,433	$	1,433		1	$	281	$	281

	For the three months ended September 30, 2020						For the three months ended September 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		—	$	—	$	—		—	$	—	$	—
Construction and land Development		—		—		—		—		—		—
Residential 1-4 family		1		32		32		—		—		—
Multifamily		—		—		—		—		—		—
Farmland		—		—		—		—		—		—
Total real estate loans		1		32		32		—		—		—
Commercial								—		—		—
Agriculture		—		—		—		—		—		—
Consumer installment loans		—		—		—		—		—		—
All other loans		—		—		—		—		—		—
Total		1	$	32	$	32		—	$	—	$	—

During the three months ended September 30, 2020, one loan with a balance of $32 thousand, modified due to bankruptcy, was considered to be a troubled debt restructuring. During the first nine months of 2020, 32 modified loans totaling $1.4 million were considered to be troubled debt restructurings.

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

During the three months ended September 30, 2020, no loans previously modified as troubled debt restructurings defaulted. During the nine months ended September 30, 2020, one loan previously modified as a troubled debt restructuring, with a balance of $31 thousand, defaulted. One loan previously modified as a troubled debt restructuring, with a balance of $663 thousand, which defaulted during the first three months of 2020, has been paid off.

No loans modified as troubled debt restructurings defaulted during the three or nine months ended September 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.