Troubled Debt Restructurings

3 Months Ended

Mar. 31, 2021

Troubled Debt Restructurings [Abstract]

NOTE 5 – Troubled Debt Restructurings

At March 31, 2021, the Company had 17 loans totaling $7.5 million compared to 20 loans totaling $8.4 million at December 31, 2020, which were considered as TDRs. The Company considers a loan to be a TDR when the debtor experiences financial difficulties and the Company grants a concession to the debtor that it would not normally consider. Concessions can relate to the contractual interest rate, maturity date, or payment structure of the note. As part of the workout plan for individual loan relationships, the Company may restructure loan terms to assist borrowers facing financial challenges in the current economic environment.

A restructuring that results in only a delay in payments that is insignificant is not considered an economic concession. In accordance with the CARES Act, the Company implemented loan modification programs in response to the COVID-19 pandemic, and the Company elected the accounting policy in the CARES Act to not apply TDR accounting to loans modified for borrowers impacted by the COVID-19 pandemic.

The following table summarizes the concession at the time of modification and the recorded investment in the Company’s TDRs before and after their modification for the three months ended March 31, 2021 and 2020.


	For the three months ended March 31, 2021
											Pre-			Post-
											modification			modification
	Renewals		Reduced		Converted		Maturity		Total		outstanding			outstanding
	deemed a		or deferred		to interest		date		Number		recorded			recorded
(dollars in thousands)	concession		payments		only		extensions		of loans			investment			investment
Consumer
Real estate		1		-		-		-		1		$	153		$	153
Total loans		1		-		-		-		1		$	153		$	153


	For the three months ended March 31, 2020
											Pre-			Post-
											modification			modification
	Renewals		Reduced		Converted		Maturity		Total		outstanding			outstanding
	deemed a		or deferred		to interest		date		Number		recorded			recorded
(dollars in thousands)	concession		payments		only		extensions		of loans			investment			investment
Commercial
Business		1		-		-		-		1		$	1,037		$	1,037
Consumer
Real estate		1		-		-		-		1			322			322
Home equity		3		-		-		-		3			1,522			1,522
Total loans		5		-		-		-		5		$	2,881		$	2,881

As of March 31, 2021 and 2020, there were no loans modified as a TDR for which there was a payment default (60 days past due) within 12 months of the restructuring date.