The following table presents the loan portfolio by class at December 31, 2020 and 2019.

On March 27, 2020, the CARES Act was enacted, establishing the PPP which is administered and guaranteed by the SBA, and as such, the Company carries no allowance on these loans. The PPP is intended to provide economic relief to small businesses nationwide adversely impacted by COVID-19. The Company participated in the PPP, and during 2020, funded 508 PPP loans totaling $32,064,000. All the Company’s PPP loans are part of the commercial, financial and agricultural loan portfolio. At December 31, 2020, 47 PPP loans totaling $3,349,000, had been forgiven by the SBA. The outstanding balance of PPP loans as of December 31, 2020 was $28,715,000, with related unamortized net fees of $475,000.

The following tables summarize loans and the activity in the allowance for loan losses by loan class, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of and for the years ended December 31, 2020 and 2019:

The following tables summarize information regarding impaired loans by portfolio class as of December 31, 2020 and December 31, 2019:

The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. For purposes of this disclosure, the unpaid principal balance is not reduced for partial charge-offs.

The following table presents non-accrual loans by classes of the loan portfolio as of December 31, 2020 and December 31, 2019:

Interest income not recorded based on the original contractual terms of the loans for non-accrual loans was $97,000 and $130,000 in 2020 and 2019, respectively. The decline in unrecorded interest income on non-accrual loans in 2020 compared to 2019 was due to the payoff of several non-accrual loans during the year ended December 31, 2020.

The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the past due status as of December 31, 2020 and December 31, 2019:

(1)	These loans are guaranteed, or well secured, and there is an effective means of collection in process.

(2)	Loans are considered past due when the borrower is in arrears on two or more monthly payments.

Troubled Debt Restructurings

As of December 31, 2020 and 2019, the Company had a recorded investment in troubled debt restructurings of $3,802,000 and $703,000, respectively. There were no specific reserves for those loans on December 31, 2020 and 2019. There were also no commitments to lend additional amounts to these customers as of December 31, 2020 and 2019.

The modification of the terms of the real estate - commercial loans performed during the year ended December 31, 2020 included declines in the stated rate of interest below the current market rate. The modification of the terms of the residential real estate - mortgage and real estate - commercial loans performed during the year ended December 31, 2019 included extensions to the maturity date of 1.2 and 5.5 years, respectively.

As of December 31, 2020, one accruing restructured loan for $33,000 was in default because it was delinquent in excess of 30 days with respect to the terms of the restructuring. There were no defaults of troubled debt restructurings within 12 months of restructure during 2020 or 2019.

The following tables summarize loans whose terms were modified, resulting in troubled debt restructurings during 2020 and 2019.


(Dollars in thousands)		Pre-Modification		Post-Modification
	Number of	Outstanding		Outstanding
	Contracts	Recorded Investment		Recorded Investment		Recorded Investment
Year ended December 31, 2020
Accruing troubled debt restructurings:
Real estate - commercial	2	$	3,161	$	3,161	$	3,143
Real estate - mortgage	1		4		4		4
	3	$	3,165	$	3,165	$	3,147

The troubled debt restructurings described above had no specific allowance for loan losses and resulted in no charge-offs during the year ending December 31, 2020.


(Dollars in thousands)		Pre-Modification		Post-Modification
	Number of	Outstanding		Outstanding
	Contracts	Recorded Investment		Recorded Investment		Recorded Investment
Year ended December 31, 2019
Accruing troubled debt restructurings:
Real estate - commercial	1	$	306	$	326	$	306
Real estate - mortgage	1		9		9		5
	2	$	315	$	335	$	311

The troubled debt restructurings described above had no specific allowance for loan losses and resulted in charge-offs of $16,000 during the year ending December 31, 2019.

The CARES Act permits financial institutions to exclude loan modifications to borrowers affected by the COVID-19 pandemic from TDR treatment if (1) the borrower was not more than 30 days past due as of December 31, 2019, and (2) the loan modification is made between March 1, 2020 and the earlier of December 31, 2020 or 60 days after the end of the coronavirus emergency declaration. A loan modification accounted for in accordance with the CARES Act is not treated as a TDR for accounting or disclosure purposes. The Consolidated Appropriations Act, 2021 ("Appropriations Act") was signed into law on December 27, 2020 and extends this temporary relief until the earlier of 60 days after the termination date of the national emergency or January 1, 2022.

On April 7, 2020, the federal banking supervisory agencies issued a Revised Interagency Statement on Loan Modifications by Financial Institutions Working with Customers Affected by the Coronavirus (“Interagency Statement”). The interagency statement offers some practical expedients for evaluating whether loan modifications that occur in response to the COVID-19 pandemic are TDRs. A lender can conclude that a borrower is not experiencing financial difficulty if either (1) short-term (i.e. six months) modifications are made in response to COVID-19, such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant related to loans in which the borrower is less than 30 days past due on its contractual payments at the time a modification program is implemented, or (2) the modification or deferral program is mandated by the federal government or a state government (e.g., a state program that requires all institutions within that state to suspend mortgage payments for a specified period). Accordingly, any loan modification made in response to the COVID-19 pandemic that meets either of these practical expedients would not be considered a TDR because the borrower is not experiencing financial difficulty.

On August 3, 2020, the Federal Financial Institutions Examination Council (“FFIEC”) issued the Joint Statement on Additional Loan Accommodations Related to COVID-19 to provide prudent risk management and consumer protection principles for financial institution to consider while working with borrowers as loans near the end of initial loan accommodation periods applicable during the pandemic. In determining whether to offer additional accommodations options to a borrower, it is generally appropriate for the financial institution to assess each loan based upon the fundamental risk characteristics affecting the collectability of that credit, including evaluating the borrower’s financial condition and repayment capacity, as well as assessing whether current conditions have affected collateral values or the strength of guarantees, if applicable. If a financial institution elects to account for a loan modification under Section 4013 of the CARES Act, an additional loan modification could also be eligible under Section 4013 if (1) related to the COVID event; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (a) 60 days after the date of termination of the National Emergency or (b) December 31, 2020. If a financial institution does not elect to account for a loan modification under Section 4013, an additional modification should be viewed cumulatively in determining whether the additional modification is a TDR. If a loan modification was previously elected under the Interagency Statement, subsequent qualifying loan modifications may be accounted for under Section 4013 of the CARES Act.

During 2020, Juniata approved interest and/or principal payment deferrals on 227 loans, excluding TDRs, totaling $77,088,000, for individuals and businesses affected by the economic impacts of COVID-19. As of December 31, 2020, four loans totaling $5,052,000 remained in deferment; however, future deferments could still occur. None of the borrowers approved for these designated deferrals were delinquent as of March 20, 2020, the date on which the Company’s COVID-19 Modification Program went into effect, and the loan modifications are not considered to be troubled-debt restructures under Section 4013.

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes loans to commercial customers with an aggregate loan exposure greater than $500,000 and for lines of credit in excess of $50,000. This analysis is performed on a continuing basis with all such loans reviewed annually. The Company uses the following definitions for risk ratings:

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Loans in this category are reviewed no less than quarterly.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Loans in this category are reviewed no less than monthly.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, based on currently existing facts, conditions, and values, highly questionable and improbable. Loans in this category are reviewed no less than monthly.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered pass-rated loans.

The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system as of December 31, 2020 and December 31, 2019. The increase in the special mention category at December 31, 2020 compared to December 31, 2019 was predominantly the result of downgrading participated hospitality and recreational facility relationships from pass to special mention in 2020 due to the pandemic.


(Dollars in thousands)			Special
As of December 31, 2020	Pass		Mention		Substandard		Doubtful		Total
Commercial, financial and agricultural	$	71,983	$	495	$	579	$	—	$	73,057
Real estate - commercial		99,828		15,198		7,631		41		122,698
Real estate - construction		36,332		24,644		75		—		61,051
Real estate - mortgage		139,787		289		1,317		45		141,438
Obligations of states and political subdivisions		18,550		—		—		—		18,550
Personal		5,867		—		—		—		5,867
Total	$	372,347	$	40,626	$	9,602	$	86	$	422,661


(Dollars in thousands)			Special
As of December 31, 2019	Pass		Mention		Substandard		Doubtful		Total
Commercial, financial and agricultural	$	46,725	$	4,080	$	980	$	—	$	51,785
Real estate - commercial		113,851		5,668		7,046		48		126,613
Real estate - construction		44,954		287		1,218		—		46,459
Real estate - mortgage		148,164		327		1,951		96		150,538
Obligations of states and political subdivisions		16,377		—		—		—		16,377
Personal		8,804		—		14		—		8,818
Total	$	378,875	$	10,362	$	11,209	$	144	$	400,590