Total troubled debt restructurings were $3.9 million and $4.1 million at March 31, 2021 and December 31, 2020. The Company has allocated $94 thousand and $81 thousand of specific reserves to loans whose terms have been modified in troubled debt restructurings at March 31, 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 March 31, 2021 and at December 31, 2020.

During the three month periods ended March 31, 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 March 31, 2021, the terms of such loans included a reduction of the stated interest rate of the loan of 4.075% and an extension of the maturity date of 22 days. During the same three month period in 2020, the terms of such loans included a deferral of principal and/or interest and an extension of the maturity date on these and other troubled debt restructurings in the range 168 to 180 months.

The following table presents loans by class modified as troubled debt restructurings that occurred during the three month periods ended March 31, 2021 and 2020:

			Pre- Modification		Post- Modification
Three Months Ended March 31, 2021	Number of		Outstanding Recorded		Outstanding Recorded
(In Thousands of Dollars)	Loans		Investment		Investment
Originated loans:
Commercial		4	$	22	$	22
Residential real estate
Home equity lines of credit		1		31		31
Consumer
Indirect		6		87		87
Total originated loans		11	$	140	$	140
Acquired loans:
Residential real estate
1-4 family residential		1		69		73
Total acquired loans		1		69		73
Total loans		12	$	209	$	213

			Pre- Modification		Post- Modification
Three Months Ended March 31, 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		5		209		210
Home equity lines of credit		4		100		102
Consumer
Indirect		10		61		61
Other		1		15		15
Total originated loans		21	$	406	$	409
Acquired loans:
Residential real estate
1-4 family residential		1		68		68
Total acquired loans		1	$	68	$	68
Total loans		22	$	474	$	477

There were $20 thousand and $5 thousand in charge offs and a $20 thousand and $5 thousand increase to the provision for credit losses during the three month periods ended March 31, 2021 and 2020, respectively, as a result of outstanding troubled debt restructurings.

There was one residential real estate loan for which there was a payment default within twelve months following the modification of the troubled debt restructuring during the three month period ended March 31, 2021. The loan was not past due at March 31, 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 period ended March 31, 2020. There were two commercial farmland and one commercial loan that were past due at March 31, 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.

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:

	June 30, 2020				September 30, 2020				December 31, 2020				March 31, 2021
	Outstanding Balance		Number of loans		Outstanding Balance		Number of loans		Outstanding Balance		Number of loans		Outstanding Balance		Number of loans
Commercial real estate	$	43,954		44	$	155		1	$	19,027		6	$	16,584		5
Commercial		8,515		69		0		0		1,424		2		0		0
Agricultural		8,340		22		469		2		0		0		0		0
Residential real estate		3,785		37		222		1		0		0		0		0
Consumer		1,858		100		2		1		2		1		0		0
Total	$	66,452		272	$	848		5	$	20,453		9	$	16,584		5

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 nine months. The decline in deferred loans and balances was due to borrowers not requesting additional deferments and that 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 March 31, 2021, the Company had received payments from the SBA for forgiveness of loans totaling $137.2 million, or approximately 68.7% of the first round of total PPP loans. The Company has funded $75.1 million in new loans for the second round of PPP loan funding.