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 seventeen (17) TDR loans totaling $2.7 million at March 31, 2020. At December 31, 2019, there were eighteen (18) TDR loans totaling $3.0 million. Three loans, totaling $155 thousand, were in nonaccrual status at March 31, 2020. Four loans, totaling $401 thousand, were in nonaccrual status at December 31, 2019. There were no outstanding commitments to lend additional amounts to troubled debt restructured borrowers at March 31, 2020 or December 31, 2019.

During the three months ended March 31, 2020 and 2019, the Company classified no additional loans as troubled debt restructurings. As of March 31, 2020, the Company had executed principal and/or interest deferrals on outstanding loan balances of $52.9 million during the first quarter of 2020. These deferrals were no more than six months in duration and were for loans not more than 30 days past due as of December 31, 2019. As such, they were not considered troubled debt restructurings based on the relief provisions of the CARES Act and recent interagency regulatory guidance. In the period subsequent to March 31, 2020 and through April 30, 2020, the Company executed additional deferrals of principal and/or interest on outstanding loan balances of $44.1 million.

There were no payment defaults during the three months ended March 31, 2020 for TDRs that were restructured within the preceding twelve month period. Payment defaults for the three months ended March 31, 2019 are detailed in the table below.



	Three Months Ended
	March 31, 2019
	(dollars in thousands)
	Number of Contracts	Recorded Investment
Single family	1	$	79
Total	1	$	79

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.