All loans deemed a troubled debt restructuring, or “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 Bank has granted a concession (one or multiple items may be present):

There were seventeen (17) troubled debt restructured loans totaling $2.7 million at December 31, 2021. At December 31, 2020, there were seventeen (17) troubled debt restructured loans totaling $3.3 million. Two loans, totaling $149 thousand, were in nonaccrual status at December 31, 2021. Three loans, totaling $796 thousand, were in nonaccrual status at December 31, 2020. There were no outstanding commitments to lend additional amounts to troubled debt restructured borrowers at December 31, 2021 or December 31, 2020.

During the year ended December 31, 2020, the Company approved 255 deferrals of interest and/or principal payments with respect to loan balances totaling approximately $130.5 million at December 31, 2020 for its customers experiencing hardships related to COVID-19. During the first quarter of 2021, the Company approved two additional deferrals of interest and/or principal with respect to loan balances totaling $41 thousand. No additional deferrals have been made since the first quarter of 2021. 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 (extended by the Consolidated Appropriations Act) and interagency regulatory guidance. As of December 31, 2021, all of the loans for which the Company had approved deferrals had begun making payments on their loans after the deferral date had passed.

The following tables set forth information on the Company’s troubled debt restructurings by class of loans occurring during the years ended December 31, 2021 and 2020:

			Twelve Months Ended
			December 31, 2021
			(in thousands)
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Consumer:
Installment		2	$	15	$	15
Residential
Single family		1		98		98
Total		3	$	113	$	113

			Twelve Months Ended
			December 31, 2020
			(in thousands)
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial - Non Real Estate:
Non-owner occupied		1	$	685	$	685
Consumer:
Installment		1		13		13
Residential
Single family		3		931		935
Total		5	$	1,629	$	1,633

During the twelve months ended December 31, 2021, the Company restructured three loans by granting a concession to the borrowers experiencing financial difficulty. The Company restructured two consumer installment loans and one residential single-family loan. The Company restructured one single-family residential loan by granting a lower interest rate and extending the loan term. The Company restructured two consumer installment loans by granting a refinance to extended the term of the loans, where one consumer installment loan was granted a lower interest rate.

During the twelve months ended December 31, 2020, the Company restructured five loans by granting a concession to the borrower experiencing financial difficulty. The Company restructured one consumer installment loan and one residential
single-family loan by granting three 90-day payment deferment periods. The Company restructured one single-family
residential loan by reducing the payments due for a period of time and restructured another single-family residential loan by
allowing a loan policy exception for a high loan-to-value. The Company also restructured one commercial real estate loan by
granting interest-only payments.

There were no TDRs occurring within the previous 12 months for which there was a payment default during the twelve months ended December 31, 2021 and 2020.

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.