Total troubled debt restructurings were $4.0 million and $4.1 million at September 30, 2021, and December 31, 2020. The Company has allocated $109 thousand and $81 thousand of specific reserves to loans whose terms have been modified in troubled debt restructurings at September 30, 2021, and December 31, 2020, respectively. There were no commitments to lend additional amounts to borrowers with loans that were classified as troubled debt restructurings at September 30, 2021, and at December 31, 2020.

During the three and nine month periods ended September 30, 2021 and 2020, 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 deferral of principal, interest and/or escrow; or a legal concession. During the three month period ended September 30, 2021, the terms of such loans included a reduction of the stated interest rate of the loan of 0.25% and an extension of the maturity date of 193 months. During the same three month period in 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 nine month period ended September 30, 2021, the terms of such loans included a reduction of the stated interest rate of the loan in the range of 0.25% and 4.075% and extensions of the maturity dates on these and other troubled debt restructurings in the range of 22 days to 361 months. During the same nine month period in 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 an extensions of the maturity dates in the range of 48 to 183 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, 2021 and 2020:

			Pre- Modification		Post- Modification
Three Months Ended September 30, 2021	Number of		Outstanding Recorded		Outstanding Recorded
(In Thousands of Dollars)	Loans		Investment		Investment
Residential real estate
1-4 family residential		2	$	215	$	233
Home equity lines of credit		1		103		103
Consumer
Indirect		5		30		30
Direct		1		10		10
Total loans		9	$	358	$	376

			Pre- Modification		Post- Modification
Nine Months Ended September 30, 2021	Number of		Outstanding Recorded		Outstanding Recorded
(In Thousands of Dollars)	Loans		Investment		Investment
Commercial		4	$	22	$	22
Residential real estate
1-4 family residential		6		426		414
Home equity lines of credit		5		201		201
Consumer
Indirect		12		121		121
Direct		3		16		16
Total loans		30	$	786	$	774

			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

There were $15 thousand and $91 thousand in charge offs during the three and nine month periods ended September 30, 2021, respectively. There was $15 thousand and $90 thousand increase to the provision for loan losses during the three and nine month periods ended September 30, 2021, respectively, as a result of outstanding troubled debt restructurings. There were $33 thousand and $72 thousand in charge offs during the three and nine month periods ended September 30, 2020, respectively. There was a $33 thousand and a $72 thousand increase to the provision during the three and nine month period ended September 30, 2020, respectively, as a result of troubled debt restructurings.

There were two commercial loans, one residential loan, and one indirect 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, 2021. There was one commercial loan past due at September 30, 2021. There was no provision recorded as a result of the defaults during 2021. A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms.

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 periods ended 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.

The Company offered three month deferrals upon request by the borrowers. For those borrowers in industries that were greatly impacted by COVID-19, additional deferrals were considered and granted beyond the initial three month period. The range of deferred months for subsequent requests were three to twelve months. The decline in deferred loans and balances was due to borrowers not requesting additional deferments and most continued to pay under the original terms of their loan.

Farmers is also a preferred U.S. Small Business Administration (“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 Paycheck Protection Program (“PPP”) under the 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. During the period ended September 30, 2021, the Company has received life to date payments from the SBA for forgiveness of loans totaling $198.4 million, or approximately 99.2% of the PPP loans originated in 2020. The Company has processed $84.0 million in new loans for PPP loan funding during 2021. The Company has also received payments from the SBA for forgiveness of loans totaling $29.2 million, or approximately 34.7%, of PPP loans originated in 2021.