Troubled Debt Restructuring

6 Months Ended

Jun. 30, 2014

Troubled Debt Restructuring [Abstract]

Troubled Debt Restructuring

14.Troubled Debt Restructuring

A troubled debt restructuring (“TDR”) is a loan modification resulting from a borrower experiencing financial difficulty and the Bank granting a concession to that borrower that would not otherwise be considered except for the borrower’s financial difficulties.  A TDR may be either accrual or nonaccrual status based upon the performance of the borrower and management’s assessment of collectability.  A TDR remains as such until a sufficient period of performance under the restructured terms has occurred, generally six months, at which time it is no longer deemed to be restructured.

Changes in troubled debt restructurings for the six months ended June 30, 2014 are as follows (dollars in thousands):

Construction

Real Estate-Residential

Real Estate-Commercial

Commercial

Consumer

Tax Exempt

Total

Accruing

December 31, 2013

$

–

$

–

$

9,009

$

–

$

–

$

–

$

9,009

Principal payments

–

–

(16)

(4)

–

–

(20)

Charge-offs

–

–

–

–

–

–

–

Advances

–

–

3

–

–

–

3

New restructured

–

–

111

27

–

–

138

Transferred out of TDRs

–

–

(658)

–

–

–

(658)

Transfers to nonaccrual

–

–

–

–

–

–

–

June 30, 2014

$

–

$

–

$

8,449

$

23

$

–

$

–

$

8,472

Nonaccrual

December 31, 2013

$

–

$

–

$

255

$

–

$

–

$

–

$

255

Principal payments

–

–

–

–

–

–

–

Charge-offs

–

–

–

–

–

–

–

Advances

–

–

1

–

–

–

1

New restructured

–

–

–

–

–

–

–

Transfers to other real estate owned

–

–

–

–

–

–

–

Transfers from accruing

–

–

–

–

–

–

–

June 30, 2014

$

–

$

–

$

256

$

–

$

–

$

–

$

256

Totals

December 31, 2013

$

–

$

–

$

9,264

$

–

$

–

$

–

$

9,264

Principal payments

–

–

(16)

(4)

–

–

(20)

Charge-offs

–

–

–

–

–

–

–

Advances

–

–

4

–

–

–

4

New restructured

–

–

111

27

–

–

138

Transfers out of TDRs

–

–

(658)

–

–

–

(658)

Transfers to other real estate owned

–

–

–

–

–

–

–

June 30, 2014

$

–

$

–

$

8,705

$

23

$

–

$

–

$

8,728

BAYLAKE CORP.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2014

During the six months ended June 30, 2014, two loan balances totaling $0.1 million were transferred to restructured status. The larger of the two loans with a balance of $0.1 million was restructured as a reduction of interest rate terms. The smaller loan balance was restructured as an A/B split structure. Also during the six months ended June 30, 2014, a $0.7 million accruing restructured loan was removed from restructured status due to compliance with its restructured terms for a sufficient period of time, generally six months.

A summary of troubled debt restructurings as of June 30, 2014 and December 31, 2013 is as follows (dollar amounts in thousands):

	June 30, 2014				December 31, 2013
		Number of Modifications		Recorded Investment		Number of Modifications		Recorded Investment
Construction		—	$	—		—	$	—
Real estate – residential		—		—		—		—
Real estate – commercial		7		8,705		8		9,264
Commercial		1		23		—		—
Consumer		—		—		—		—
Tax exempt		—		—		—		—
Total		8	$	8,728		8	$	9,264

A summary of troubled debt restructurings as of June 30, 2014 by restructure type is as follows (dollar amounts in thousands):

		Accruing		Nonaccruing		Total
A/B Note Structure	$	22	$	–	$	22
Payment schedule changes		6,371		256		6,627
Interest rate reduction		2,079		–		2,079
Total	$	8,472	$	256	$	8,728