Annual Report 2018 - Page 29

Troubled Debt Restructurings (TDRs) Included within our loans are TDRs. These loans have been modified by granting a concession in order to maximize the collection of amounts due when a borrower is experiencing financial difficulties. All risk loans, including TDRs, are analyzed within our allowance for loan losses. TDR Activity (in thousands) For the year ended December 31 2018 Pre-modification Post-modification Real estate mortgage Production and intermediate-term Agribusiness Total 2017 Pre-modification Post-modification 2016 Pre-modification Post-modification $746 126 82 $746 126 82 $861 671 -- $868 664 -- $173 255 -- $172 251 -- $954 $954 $1,532 $1,532 $428 $423 Pre-modification represents the outstanding recorded investment of the loan just prior to restructuring and post-modification represents the outstanding recorded investment of the loan immediately following the restructuring. The recorded investment in the loan is the unpaid principal amount of the receivable increased or decreased by applicable accrued interest and unamortized premium, discount, finance charges, and acquisition costs and may also reflect a previous direct charge-off of the investment. The primary types of modification included deferral of principal and extension of maturity. There were no TDRs that defaulted during the years ended December 31, 2018, 2017, or 2016 in which the modification was within twelve months of the respective reporting period. TDRs Outstanding (in thousands) As of December 31 2018 2017 2016 Accrual status: Real estate mortgage Production and intermediate-term Agribusiness $527 624 -- $551 759 -- $581 902 -- $1,310 $1,483 $1,151 Total TDRs in accrual status Nonaccrual status: Real estate mortgage Production and intermediate-term Agribusiness $1,725 503 116 $2,344 Total TDRs in nonaccrual status Total TDRs: Real estate mortgage Production and intermediate-term Agribusiness $2,252 1,127 116 $3,495 Total TDRs $1,487 650 -- $2,137 $2,038 1,409 -- $3,447 $1,267 734 -- $2,001 $1,848 1,636 -- $3,484 There were no commitments to lend to borrowers whose loans have been modified in a TDR at December 31, 2018. Allowance for Loan Losses Changes in Allowance for Loan Losses (in thousands) 2018 2017 2016 Balance at beginning of year Provision for loan losses Loan recoveries Loan charge-offs $15,915 -- 217 (166) $16,428 -- 276 (789) $15,887 1,000 715 (1,174) Balance at end of year $15,966 $15,915 $16,428 For the year ended December 31 26