Troubled Debt Restructurings

All loans deemed a troubled debt restructuring (“TDR"), are considered impaired, and are evaluated for collateral and cash-flow sufficiency. A loan is considered a TDR when the Company, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that the Company would not otherwise consider. All of the following factors are indicators that the Company has granted a concession (one or multiple items may be present):


•	The borrower receives a reduction of the stated interest rate to a rate less than the institution is willing to accept at the time of the restructure for a new loan with comparable risk.


•	The borrower receives an extension of the maturity date or dates at a stated interest rate lower than the current market interest rate for new debt with similar risk characteristics.


•	The borrower receives a reduction of the face amount or maturity amount of the debt as stated in the instrument or other agreement.


•	The borrower receives a deferral of required payments (principal and/or interest) which causes more than an insignificant change in cash flow.


•	The borrower receives a reduction of the accrued interest.

There were nineteen (19) TDR loans totaling $3.2 million at September 30, 2019. At December 31, 2018, there were nineteen (19) TDR loans totaling $3.8 million. Five loans, totaling $549 thousand, were in nonaccrual status at September 30, 2019. Two loans, totaling $118 thousand, were in nonaccrual status at December 31, 2018. There were no outstanding commitments to lend additional amounts to troubled debt restructured borrowers at September 30, 2019 or December 31, 2018.

During the three months ended September 30, 2018 and the three and nine months ended September 30, 2019, the Company restructured no loans by granting concessions to borrowers experiencing financial difficulties. The following table and narrative set forth information on the Company’s TDRs by class of financing receivable occurring during the nine months ended September 30, 2018:



		Nine Months Ended
		September 30, 2018
		(in thousands)
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Residential:
Single family	1	$	86	$	86
Total	1	$	86	$	86

During the nine months ended September 30, 2018, the Company restructured one loan by granting a concession to the

borrower experiencing financial difficulty by extending the maturity date.

Payment defaults during the nine months ended September 30, 2019 for TDRs that were restructured within the preceding twelve month period are detailed in the table below. There were no payment defaults during the three months ended September 30, 2019 or the three and nine months ended September 30, 2018.



	Nine Months Ended
	September 30, 2019
	(dollars in thousands)
	Number of Contracts	Recorded Investment
Residential:
Single family	1	$	74
Total	1	$	74

Management defines default as over 30 days contractually past due under the modified terms, the foreclosure and/or repossession of the collateral, or the charge-off of the loan during the twelve month period subsequent to the modification.