Troubled Debt Restructurings

6 Months Ended

Jun. 30, 2020

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 fourteen (14) TDR loans totaling $2.7 million at June 30, 2020. At December 31, 2019, there were eighteen (18) TDR loans totaling $3 million. Three loans, totaling $145 thousand, were in nonaccrual status at June 30, 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 June 30, 2020 or December 31, 2019.

During the three and six months ended June 30, 2020 and 2019, the Company classified no additional loans as troubled debt restructurings. As of June 30, 2020, the Company had approved 247 deferrals of interest and/or principal payments with respect to loan balances totaling approximately $145.9 million for its customers experiencing hardships related to COVID-19. 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 Coronavirus Aid, Relief and Economic Security ("CARES") Act and recent interagency regulatory guidance. As of July 24, 2020, 147 of these loans with loan balances totaling approximately $70.2 million had begun making payments on their loans after the deferral date had passed. The majority of the remainder of these loans are still in their original deferral period, have been granted and additional deferral or have paid off.

There were no payment defaults during the three and six months ended June 30, 2020 for TDRs that were restructured within the preceding twelve month period. There wee also no payment defaults during the three months ended June 30, 2019. Payment defaults for the six months ended June 30, 2019 are detailed in the table below.




	Six Months Ended
	June 30, 2019
	(dollars in thousands)
	Number of Contracts	Recorded Investment
Residential:
Single family	1	$	76
Total	1	$	76

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.