NOTE 22 — TROUBLED DEBT RESTRUCTURINGS

The troubled debt restructurings (TDR’s) amounted to $33,391,612 at March 31, 2013. The accruing TDR’s were $26,193,250 and the non-accruing TDR’s were $7,198,362 at March 31, 2013. The troubled debt restructurings (TDR’s) amounted to $34,757,588 at March 31, 2012. The accruing TDR’s were $24,732,532 and the non-accruing TDR’s were $10,025,056 at March 31, 2012.

The following chart represents the troubled debt restructurings incurred during the quarter ended March 31, 2013:

	For the three months ended
	March 31, 2013
		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number	Recorded		Recorded
	of Contracts	Investment		Investment
Troubled Debt Restructurings
Residential Real Estate	2	$	395,653	$	395,653
Commercial Real Estate	1	174,598		174,598
Totals	3	$	570,251	$	570,251

	For the three months ended
	March 31, 2012
		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number	Recorded		Recorded
	of Contracts	Investment		Investment
Troubled Debt Restructurings
Residential Real Estate	2	$	720,046	$	679,134
Commercial Real Estate	1	851,587		851,587
Totals	3	$	1,571,633	$	1,530,721

During the three months ended March 31, 2013, the Bank modified three loans that were considered to be troubled debt restructurings. We extended the terms for these loans and the interest rate was lowered. During the three months ended March 31, 2012, the Bank modified three loans that were considered to be troubled debt restructurings. We extended the terms for those loans and the interest rate was lowered.

The following chart represents the troubled debt restructurings that subsequently defaulted during the period ended March 31, 2013.

		For the period ended
	Number	March 31, 2013
	of Contracts	Recorded Investment

Troubled Debt Restructurings
That Subsequently Defaulted
During the Period:
Residential Real Estate Const	1	$	66,150

During the period ended March 31, 2013, one loan that had previously been restructured went into default. There were no loans that were determined to be troubled debt restructurings during the previous four quarters that subsequently defaulted during the quarter ended March 31, 2012.

In the determination of the allowance for loan losses, management considers troubled debt restructurings and subsequent defaults in these restructurings by performing the usual process for all loans in determining the allowance for loan loss.