Total troubled debt restructurings were $4.3 million and $4.6 million at September 30, 2020 and December 31, 2019. The Company has allocated $82 thousand and $61 thousand of specific reserves to loans whose terms have been modified in troubled debt restructurings at September 30, 2020 and December 31, 2019, respectively. There were no commitments to lend additional amounts to borrowers with loans that were classified as troubled debt restructurings at September 30, 2020 and at December 31, 2019.

During the three and nine month periods ended September 30, 2020 and 2019, the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; a reduction of the contractual monthly payment; a deferral of principal, interest and/or escrow; or a legal concession. During the three month period ended September 30, 2020, the terms of such loans included a reduction of the stated interest rate of the loan of 2.25% and an extension of the maturity date of 48 months. During the same three month period in 2019, the terms of such loans included a reduction of the contractual payment. During the nine month period ended September 30, 2020, the terms of such loans included a reduction of the stated interest rate of the loan in the range of 1.00% and 2.25% and extensions of the maturity dates on these and other troubled debt restructurings in the range of 48 to 183 months. During the same nine month period in 2019, the terms of such loans included a reduction of the stated interest rate of the loan in the range of 0.24% and 2.74% and an extension of the maturity date in the range of 86 to 124 months.

The following table presents loans by class modified as troubled debt restructurings that occurred during the three and nine month periods ended September 30, 2020 and 2019:

			Pre- Modification		Post- Modification
Three Months Ended September 30, 2020	Number of		Outstanding Recorded		Outstanding Recorded
(In Thousands of Dollars)	Loans		Investment		Investment
Originated loans:
Consumer
Indirect		2	$	3	$	3
Total originated loans		2	$	3	$	3
Acquired loans:
Residential real estate
1-4 family residential		1		60		64
Total acquired loans		1	$	60	$	64
Total loans		3	$	63	$	67

			Pre- Modification		Post- Modification
Nine Months Ended September 30, 2020	Number of		Outstanding Recorded		Outstanding Recorded
(In Thousands of Dollars)	Loans		Investment		Investment
Originated loans:
Commercial		1	$	21	$	21
Residential real estate
1-4 family residential		6		245		246
Home equity lines of credit		4		100		102
Consumer
Indirect		19		124		124
Other		1		15		15
Total originated loans		31	$	505	$	508
Acquired loans:
1-4 family residential		3		140		144
Total acquired loans		3	$	140	$	144
Total loans		34	$	645	$	652

			Pre- Modification		Post- Modification
Three Months Ended September 30, 2019	Number of		Outstanding Recorded		Outstanding Recorded
(In Thousands of Dollars)	Loans		Investment		Investment
Originated loans:
Indirect		9		125		125
Other		1		28		28
Total originated loans		10	$	153	$	153
Acquired loans:
Commercial
Commercial and industrial		1		27		27
Total acquired loans		1	$	27	$	27
Total loans		11	$	180	$	180

			Pre- Modification		Post- Modification
Nine Months Ended September 30, 2019	Number of		Outstanding Recorded		Outstanding Recorded
(In Thousands of Dollars)	Loans		Investment		Investment
Originated loans:
Commercial		1	$	12	$	12
Residential real estate
1-4 family residential		5		128		130
Home equity lines of credit		2		88		92
Consumer
Indirect		33		315		315
Other		2		46		46
Total originated loans		43	$	589	$	595
Acquired loans:
Commercial real estate
Farmland		1		86		86
Commercial
Commercial and industrial		1		27		27
Residential real estate
1-4 family residential		3		75		79
Home equity lines of credit		0		0		0
Consumer
Other		3		14		14
Total acquired loans		8	$	202	$	206
Total loans		51	$	791	$	801

There were $33 thousand and $72 thousand in charge offs and a $33 thousand and $72 thousand increase to the provision for loan losses during the three and nine month periods ended September 30, 2020, respectively, as a result of outstanding troubled debt restructurings. There were $42 thousand and $93 thousand in charge offs during the three and nine month periods ended September 30, 2019, respectively. There was a $42 thousand and a $93 thousand increase to the provision during the three and nine month period ended September 30, 2019, respectively, as a result of troubled debt restructurings.

There were two commercial farmland loans and one commercial loan for which there was a payment default within twelve months following the modification of the troubled debt restructuring during the three month and nine month period ended September 30, 2020. There were two commercial farmland loans past due at September 30, 2020. There was no provision recorded as a result of the defaults during 2020. A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms.

There were four commercial loans, two residential real estate loans and one home equity line of credit for which there was a payment default within twelve months following the modification of the troubled debt restructuring during the three month and nine month periods ended September 30, 2019. There was no provision recorded as a result of the defaults during 2019. A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms.

Farmers is offering special financial assistance to support customers who are experiencing financial hardships related to the COVID-19 pandemic. The following table reports the number and amount of payment deferrals by loan type as of dates listed:

	March 31, 2020			June 30, 2020			September 30, 2020
		Outstanding Balance	Number of Loans		Outstanding Balance	Number of Loans		Outstanding Balance	Number of Loans
Commercial real estate	$	75,809	78	$	43,954	44	$	155	1
Commercial		11,839	81		8,515	69		0	0
Agricultural		1,492	11		8,340	22		469	2
Residential real estate		5,506	41		3,785	37		222	1
Consumer		2,840	127		1,858	100		2	1
Total	$	97,486	338	$	66,452	272	$	848	5

The Company offered three month deferrals upon request by the borrowers. The deferral requests began in the middle of March 2020 and concluded at the end of the three month deferral period. The Company has granted a second three month deferral period to $23.8 million in commercial real estate loans and $5.7 million in commercial loans, which are included in the amounts detailed above. The second deferral period was offered to a select group of customers within specific industry codes that may have a higher credit risk. The Company anticipates that there will be a limited number of business customers with a total of a six month deferral period. The decline in deferred loans and balances was due to the ending of the deferment period and the fact that not all borrowers requested additional deferments as most continued to pay under the original terms of their loan.

Farmers is also a preferred SBA lender and dedicated significant additional staff and other resources to help our customers complete and submit their applications and supporting documentation for loans offered under the new Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, so they could obtain SBA approval and receive funding as quickly as possible. During the period of the PPP program, the Company facilitated PPP assistance to 1,714 business customers totaling $199.8 million. The Company, on behalf of its customers, began processing borrower applications for PPP forgiveness at the beginning of September 2020. The SBA has up to ninety days to review an application for PPP forgiveness and provide a decision at the end of that review. Once forgiveness of the PPP loan has been communicated and payment is received from the SBA, the Company will record the cash received from the SBA, pay-off the loans based on the amount of forgiveness provided and accelerate the amount of net deferred loan fees/costs recognized for the portion of the PPP loans that are forgiven. At October 22, 2020, the Company had received payments from the SBA for forgiveness of loans totaling $1.8 million, or approximately 1% of the total PPP loans.