The following table presents the classes of the loan portfolio summarized by risk rating as of December 31, 2022 and 2021:

Commercial and Industrial and Commercial Real Estate include loans categorized as tax-free in the amounts of $28,079,000 and $1,492,000 at December 31, 2022 and $24,647,000 and $1,671,000 at December 31, 2021. Commercial and Industrial loans also included $4,631,000 and $3,829,000 of GGLs and $113,000 and $4,894,000 of PPP loans as of December 31, 2022 and 2021, respectively. Loans held for sale amounted to $71,000 at December 31, 2022 and $6,006,000 at December 31, 2021. During the year ended December 31, 2022, $7,900,000 in loans that had been previously held for sale were transferred to held for investment status, as the Corporation no longer had the intent to sell these loans.

The activity in the allowance for loan losses, by loan class, is summarized below for the years indicated.

The outstanding recorded investment of loans categorized as TDRs as of December 31, 2022 and December 31, 2021 was $7,480,000 and $8,020,000, respectively. The decrease in TDRs at December 31, 2022 as compared to December 31, 2021 is mainly attributable to regular principal payments and paydowns on existing TDRs that were completed during the year ended December 31, 2022. There were no unfunded commitments on TDRs at December 31, 2022 and 2021.

During the year ended December 31, 2022, two loans with a combined post modification balance of $515,000 were modified as TDRs, compared to the year ended December 31, 2021 when four loans with a combined post modification balance of $360,000 were modified as TDRs. The loan modifications for the year ended December 31, 2022 consisted of two payment modifications, compared to December 31, 2021 when the loan modifications consisted of two term modifications beyond the original stated term and two payment modifications.

The following table presents the outstanding recorded investment of TDRs at the dates indicated:

At December 31, 2022, three commercial and industrial loans classified as TDRs with a combined recorded investment of $664,000 and five commercial real estate loans classified as TDRs with a combined recorded investment of $684,000 were not in compliance with the terms of their restructure, compared to December 31, 2021 when three commercial and industrial loans classified as TDRs with a combined recorded investment of $708,000, ten commercial real estate loans classified as TDRs with a combined recorded investment of $590,000, and one residential real estate loan classified as a TDR with a recorded investment of $14,000 were not in compliance with the terms of their restructure.

Of the loans that were modified as TDRs within the twelve months preceding December 31, 2022, no loans experienced payment defaults during the year ended December 31, 2022. Three commercial real estate loans totaling $285,000 that were modified as TDRs within the twelve months preceding December 31, 2021 experienced payment defaults during the year ended December 31, 2021.

The following table presents information regarding the loan modifications categorized as TDRs during the year ended December 31, 2022 and 2021.

The following table provides detail regarding the types of loan modifications made for loans categorized as TDRs during the year ended December 31, 2022 and 2021 with the total number of each type of modification performed.

In the wake of the COVID-19 pandemic, during the second quarter of 2020, the Corporation began granting loan modification requests to defer principal and/or interest payments or modify interest rates. These loans are not classified as TDRs according to Section 4013 of the CARES Act, as long as the specific criteria set forth in the Act are met. As of December 31, 2022, there were no loan modifications in compliance with Section 4013 of the CARES Act that were still actively on deferral, compared to December 31, 2021 when there was one loan in the amount of $9,423,000 that was still actively on deferral, which was returned to normal payment status during the first quarter of 2022.

The recorded investment, unpaid principal balance, and the related allowance of the Corporation’s impaired loans are summarized below at December 31, 2022 and 2021.

At December 31, 2022 and 2021, $7,480,000 and $8,020,000 of loans classified as TDRs were included in impaired loans with a total allocated allowance of $0 at both December 31, 2022 and December 31, 2021. The recorded investment represents the loan balance reflected on the consolidated balance sheets net of any charge-offs. The unpaid balance is equal to the gross amount due on the loan.

The average recorded investment and interest income recognized for the Corporation’s impaired loans are summarized below for the years ended December 31, 2022 and 2021.


(Dollars in thousands)	For the Year Ended				For the Year Ended
	December 31, 2022				December 31, 2021
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
With no related allowance recorded:
Commercial and Industrial	$	992	$	14	$	1,052	$	9
Commercial Real Estate		10,741		294		12,571		346
Residential Real Estate		841		1		1,107		2

With an allowance recorded:
Commercial and Industrial		—		—		—		—
Commercial Real Estate		—		—		198		—
Residential Real Estate		—		—		—		—
Total	$	12,574	$	309	$	14,928	$	357

Total consists of:
Commercial and Industrial	$	992	$	14	$	1,052	$	9
Commercial Real Estate	$	10,741	$	294	$	12,769	$	346
Residential Real Estate	$	841	$	1	$	1,107	$	2

Of the $309,000 and $357,000 in interest income recognized on impaired loans for the years ended December 31, 2022 and 2021, respectively, $0 and $3,000 in interest income was recognized with respect to non-accrual loans for each respective period.

Total non-performing assets (which includes loans receivable on non-accrual status, foreclosed assets held for resale and loans past-due 90 days or more and still accruing interest) as of December 31, 2022 and 2021 were as follows:


(Dollars in thousands)	December 31,		December 31,
	2022		2021
Commercial and Industrial	$	664	$	708
Commercial Real Estate		3,658		5,519
Residential Real Estate		729		839
Total non-accrual loans		5,051		7,066
Foreclosed assets held for resale		—		—
Loans past-due 90 days or more and still accruing interest		308		—
Total non-performing assets	$	5,359	$	7,066

If interest on non-accrual loans had been accrued at original contract rates, interest income would have increased by $2,174,000 in 2022 and $1,858,000 in 2021.

There were no foreclosed assets held for resale at December 31, 2022 or December 31, 2021. Consumer mortgage loans secured by residential real estate for which the Corporation has entered into formal foreclosure proceedings but for which physical possession of the property has yet to be obtained amounted to $41,000 at both December 31, 2022 and December 31, 2021. These balances were not included in foreclosed assets held for resale at December 31, 2022 or December 31, 2021.

The following tables present the classes of the loan portfolio summarized by the past-due status at December 31, 2022 and 2021:

(Dollars in thousands)

90 Days

Or Greater

Past Due

90 Days

Current-

and Still

30-59 Days

60-89 Days

or Greater

Total

29 Days

Total

Accruing

Past Due

Loans

Interest

December 31, 2022:

Commercial and Industrial

640

764

86,235

86,999

—

Commercial Real Estate

2,074

3,797

5,905

605,644

611,549

140

Residential Real Estate

608

897

1,530

152,976

154,506

168

Consumer

—

5,402

5,415

—

Total

2,754

124

5,334

8,212

850,257

858,469

308


(Dollars in thousands)													90 Days
													Or Greater
													Past Due
					90 Days					Current-			and Still
	30-59 Days		60-89 Days		or Greater		Total			29 Days	Total		Accruing
	Past Due		Past Due		Past Due		Past Due		Past Due		Loans		Interest
December 31, 2021:
Commercial and Industrial	$	47	$	—	$	678	$	725	$	81,801	$	82,526	$	—
Commercial Real Estate		116		189		4,891		5,196		516,458		521,654		—
Residential Real Estate		553		191		839		1,583		141,800		143,383		—
Consumer		14		—		—		14		5,264		5,278		—
Total	$	730	$	380	$	6,408	$	7,518	$	745,323	$	752,841	$	—

At December 31, 2022 and 2021 commitments to lend additional funds with respect to impaired loans consisted of one irrevocable letter of credit in the amount of $1,249,000 that was associated with a loan to a developer of a residential sub-division.