Troubled Debt Restructuring

3 Months Ended

Mar. 31, 2015

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 on either accrual or nonaccrual status based upon the performance of the borrower and management’s assessment of collectability.  A TDR remains classified 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 a TDR.

BAYLAKE CORP.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2015

Changes in TDRs for the three months ended March 31, 2015 are as follows (dollars in thousands):

Construction

Real Estate-Residential

Real Estate-Commercial

Commercial-Syndicated

Commercial-Other

Consumer

Tax Exempt

Total

Accruing

January 1, 2015

$

–

$

–

$

8,640

$

–

$

16

$

–

$

–

$

8,656

Principal payments

–

–

(3)

–

–

–

–

(3)

Charge-offs

–

–

–

–

–

–

–

–

Advances

–

–

–

–

–

–

–

–

New restructured

–

–

–

–

–

62

–

62

Transfers out of TDRs

–

–

(1,792)

–

(16)

–

–

(1,808)

Transfers to nonaccrual

–

–

–

–

–

–

–

–

March 31, 2015

$

–

$

–

$

6,845

$

–

$

–

$

62

$

–

$

6,907

Nonaccrual

January 1, 2015

$

–

$

–

$

–

$

–

$

–

$

–

$

–

$

–

Principal payments

–

–

–

–

–

–

–

–

Charge-offs

–

–

–

–

–

–

–

–

Advances

–

–

–

–

–

–

–

–

New restructured

–

–

–

–

–

–

–

–

Transfers to other real estate owned

–

–

–

–

–

–

–

–

Transfers from accruing

–

–

–

–

–

–

–

–

March 31, 2015

$

–

$

–

$

–

$

–

$

–

$

–

$

–

$

–

Totals

January 1, 2015

$

–

$

–

$

8,640

$

–

$

16

$

–

$

–

$

8,656

Principal payments

–

–

(3)

–

–

–

–

(3)

Charge-offs

–

–

–

–

–

–

–

–

Advances

–

–

–

–

–

–

–

–

New restructured

–

–

–

–

–

62

–

62

Transfers out of TDRs

–

–

(1,792)

–

(16)

–

–

(1,808)

Transfers to other real estate owned

–

–

–

–

–

–

–

–

March 31, 2015

$

–

$

–

$

6,845

$

–

$

–

$

62

$

–

$

6,907

During the three months ended March 31, 2015, one loan balance totaling $0.1 million was transferred to restructured status due to a change in payment schedule. Also during the three months ended March 31, 2015, $1.8 million of accruing restructured loans were removed from restructured status due to compliance with their restructured terms for at least six months.

BAYLAKE CORP.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2015

A summary of troubled debt restructurings as of March 31, 2015 and December 31, 2014 is as follows (dollar amounts in thousands):

	March 31, 2015				December 31, 2014
		Number of Modifications		Recorded Investment		Number of Modifications		Recorded Investment
Construction		—	$	—		—	$	—
Real estate – Residential		—		—		—		—
Real estate – Commercial		8		6,845		9		8,640
Commercial-Syndicated		—		—		—		—
Commercial-Other		—		—		1		16
Consumer		1		62		—		—
Tax exempt		—		—		—		—
Total		9	$	6,907		10	$	8,656

A summary of troubled debt restructurings as of March 31, 2015 by restructure type is as follows (dollar amounts in thousands):

		Accruing		Nonaccruing		Total
Payment schedule changes	$	6,620	$	–	$	6,620
Interest rate reduction		287		–		287
Total	$	6,907	$	–	$	6,907