LOANS

12 Months Ended

Dec. 31, 2022

LOANS

LOANS

8. LOANS

The loans receivable portfolio is segmented into commercial, residential mortgage and consumer loans. Loans outstanding at December 31, 2022 and December 31, 2021 are summarized by segment, and by classes within each segment, as follows:

Summary of Loans by Type

(In Thousands)

	December 31,		December 31,
	2022		2021
Commercial:
Commercial loans secured by real estate	$	682,249	$	569,840
Commercial and industrial		178,271		159,073
Paycheck Protection Program - 1st Draw		5		1,356
Paycheck Protection Program - 2nd Draw		163		25,508
Political subdivisions		90,719		81,301
Commercial construction and land		73,963		60,579
Loans secured by farmland		12,950		11,121
Multi-family (5 or more) residential		55,886		50,089
Agricultural loans		2,435		2,351
Other commercial loans		14,857		17,153
Total commercial		1,111,498		978,371
Residential mortgage:
Residential mortgage loans - first liens		509,782		483,629
Residential mortgage loans - junior liens		24,949		23,314
Home equity lines of credit		43,798		39,252
1-4 Family residential construction		30,577		23,151
Total residential mortgage		609,106		569,346
Consumer		19,436		17,132
Total		1,740,040		1,564,849
Less: allowance for loan losses		(16,615)		(13,537)
Loans, net	$	1,723,425	$	1,551,312

In the table above, outstanding loan balances are presented net of deferred loan origination fees of $4,725,000 at December 31, 2022 and $4,247,000 at December 31, 2021.

The Corporation grants loans to individuals as well as commercial and tax-exempt entities. Commercial, residential and personal loans are made to customers geographically concentrated in Northcentral Pennsylvania, the Southern tier of New York State, Southeastern Pennsylvania and Southcentral Pennsylvania. Although the Corporation has a diversified loan portfolio, a significant portion of its debtors’ ability to honor their contracts is dependent on the local economic conditions within the region.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. The CARES Act is a $2 trillion stimulus package designed to provide relief to U.S. businesses and consumers struggling as a result of the pandemic. A

provision in the CARES Act includes creation of the Paycheck Protection Program (“PPP”) through the Small Business Administration (“SBA”) and Treasury Department. Under the PPP, the Corporation, as an SBA-certified lender, provided SBA-guaranteed loans to small businesses to pay their employees, rent, mortgage interest, and utilities. PPP loans are forgiven subject to clients’ providing documentation evidencing their compliant use of funds and otherwise complying with the terms of the program.  Information related to PPP loans advanced pursuant to the CARES Act are labeled “1st Draw” within the tables.

On December 27, 2020, the President of the United States signed into law the Consolidated Appropriations Act, 2021 (the “CAA”), which includes provisions that broadly address additional COVID-19 responses and relief. Among the additional relief measures included are certain extensions to elements of the CARES Act, including extension of relief from troubled debt restructurings reporting established under Section 4013 of the CARES Act to 60 days after the date on which the national COVID-19 emergency terminates. The CAA also included additional funding for the PPP with additional eligibility requirements for borrowers with generally the same loan terms as provided under the CARES Act. Information related to PPP loans advanced pursuant to the CAA are labeled “2nd Draw” within the tables.

The maximum term of PPP loans is five years. Most of the Corporation’s 1st Draw PPP loans have two-year terms, while 2nd Draw PPP loans have  five-year terms and the Corporation is repaid sooner to the extent the loans are forgiven. The interest rate on PPP loans is 1%, and the Corporation has received fees from the SBA ranging between 1% and 5% per loan, depending on the size of the loan. Fees on PPP loans, net of origination costs and a market rate adjustment on acquired PPP loans, are recognized in interest income as a yield adjustment over the term of the loans.

As of December 31, 2022, the recorded investment in PPP loans was $168,000, including contractual principal balances of $195,000, reduced by net deferred origination fees of $27,000. Interest and fees on PPP loans which are included in taxable interest and fees on loans in the consolidated statements of income totaled $958,000 in 2022, $6,530,000 in 2021 and $2,924,000 in 2020.

Loans acquired in business combinations were recorded at their initial fair value, with adjustments made to the gross amortized cost of loans based on movements in interest rates (market rate adjustment) and based on credit fair value adjustments on non-impaired loans and impaired loans. Subsequent to the acquisitions, the Corporation has recognized amortization and accretion of a portion of the market rate adjustments and credit adjustments on non-impaired (performing) loans, and a partial recovery of purchased credit impaired (PCI) loans. For the years ended December 31, 2022 and 2021, adjustments to the initial market rate and credit fair value adjustments of performing loans were recognized as follows:

(In Thousands)	Year Ended
	December 31,		December 31,
	2022		2021
Market Rate Adjustment
Adjustments to gross amortized cost of loans at beginning of period	$	(637)	$	718
Amortization recognized in interest income		(279)		(1,355)
Adjustments to gross amortized cost of loans at end of period	$	(916)	$	(637)
Credit Adjustment on Non-impaired Loans
Adjustments to gross amortized cost of loans at beginning of period	$	(3,335)	$	(5,979)
Accretion recognized in interest income		1,495		2,644
Adjustments to gross amortized cost of loans at end of period	$	(1,840)	$	(3,335)

A summary of PCI loans held at December 31, 2022 and December 31, 2021 is as follows:

(In Thousands)	December 31,		December 31,
	2022		2021
Outstanding balance	$	1,833	$	9,802
Carrying amount		1,027		6,558

Transactions within the allowance for loan losses, summarized by segment and class, were as follows:

	December 31,								December 31,
Year Ended December 31, 2022	2021						Provision		2022
(In Thousands)	Balance		Charge-offs		Recoveries		(Credit)		Balance
Allowance for Loan Losses:
Commercial:
Commercial loans secured by real estate	$	4,405	$	(3,942)	$	0	$	6,611	$	7,074
Commercial and industrial		2,723		(150)		0		336		2,909
Commercial construction and land		637		0		0		10		647
Loans secured by farmland		115		0		0		(3)		112
Multi-family (5 or more) residential		215		0		0		196		411
Agricultural loans		25		0		0		(4)		21
Other commercial loans		173		0		0		(49)		124
Total commercial		8,293		(4,092)		0		7,097		11,298
Residential mortgage:
Residential mortgage loans - first liens		3,650		0		4		(241)		3,413
Residential mortgage loans - junior liens		184		0		0		(17)		167
Home equity lines of credit		302		0		15		(35)		282
1-4 Family residential construction		202		0		0		9		211
Total residential mortgage		4,338		0		19		(284)		4,073
Consumer		235		(153)		49		113		244
Unallocated		671		0		0		329		1,000
Total Allowance for Loan Losses	$	13,537	$	(4,245)	$	68	$	7,255	$	16,615

	December 31,								December 31,
Year Ended December 31, 2021	2020						Provision		2021
(In Thousands)	Balance		Charge-offs		Recoveries		(Credit)		Balance
Allowance for Loan Losses:
Commercial:
Commercial loans secured by real estate	$	3,051	$	0	$	2	$	1,352	$	4,405
Commercial and industrial		2,245		(1,464)		20		1,922		2,723
Commercial construction and land		454		0		0		183		637
Loans secured by farmland		120		0		0		(5)		115
Multi-family (5 or more) residential		236		0		0		(21)		215
Agricultural loans		34		0		0		(9)		25
Other commercial loans		168		0		0		5		173
Total commercial		6,308		(1,464)		22		3,427		8,293
Residential mortgage:
Residential mortgage loans - first liens		3,524		(11)		4		133		3,650
Residential mortgage loans - junior liens		349		0		0		(165)		184
Home equity lines of credit		281		0		2		19		302
1-4 Family residential construction		99		0		0		103		202
Total residential mortgage		4,253		(11)		6		90		4,338
Consumer		239		(100)		38		58		235
Unallocated		585		0		0		86		671
Total Allowance for Loan Losses	$	11,385	$	(1,575)	$	66	$	3,661	$	13,537

	December 31,								December 31,
Year Ended December 31, 2020	2019						Provision		2020
(In Thousands)	Balance		Charge-offs		Recoveries		(Credit)		Balance
Allowance for Loan Losses:
Commercial:
Commercial loans secured by real estate	$	1,921	$	0	$	0	$	1,130	$	3,051
Commercial and industrial		1,391		(2,236)		16		3,074		2,245
Commercial construction and land		966		(107)		0		(405)		454
Loans secured by farmland		158		0		0		(38)		120
Multi-family (5 or more) residential		156		0		0		80		236
Agricultural loans		41		0		0		(7)		34
Other commercial loans		155		0		0		13		168
Total commercial		4,788		(2,343)		16		3,847		6,308
Residential mortgage:
Residential mortgage loans - first liens		3,405		0		39		80		3,524
Residential mortgage loans - junior liens		384		0		1		(36)		349
Home equity lines of credit		276		0		4		1		281
1-4 Family residential construction		117		0		0		(18)		99
Total residential mortgage		4,182		0		44		27		4,253
Consumer		281		(122)		41		39		239
Unallocated		585		0		0		0		585
Total Allowance for Loan Losses	$	9,836	$	(2,465)	$	101	$	3,913	$	11,385

For the year ended December 31, 2022, the provision for loan losses was $7,255,000, an increase in expense of $3,594,000 as compared to $3,661,000 recorded in the year ended December 31, 2021. The provision for 2022 includes $3,890,000 related to specific loans (net charge-offs of $4,177,000 and net decrease in specific allowances on loans of $287,000), an increase of $3,036,000 in the collectively determined portion of the allowance and a $329,000 increase in the unallocated portion.

In 2022, the provision for loan losses includes the impact of partial charge-offs totaling $3,942,000 on a commercial real estate secured participation loan to a borrower in the health care industry. The charge-offs resulted from the borrower’s default due to deterioration in

financial performance. The recorded investment in the loan at December 31, 2022 (principal balance, net of partial charge-offs) was $2,654,000 based on a settlement agreement reached with the borrower.

The provision for loan losses in 2021 includes $1,324,000 related to specific loans (net charge-offs of $1,509,000 and a decrease in specific allowances on loans of $185,000), an increase of $2,251,000 in the collectively determined portion of the allowance and an $86,000 increase in the unallocated portion. In 2020, the provision included a $2,219,000 charge-off on one commercial loan.

In determining the larger loan relationships for detailed assessment under the specific allowance component, the Corporation uses an internal risk rating system. Under the risk rating system, the Corporation classifies problem or potential problem loans as “Special Mention,” “Substandard,” or “Doubtful” on the basis of currently existing facts, conditions and values. Loans that do not currently expose the Corporation to sufficient risk to warrant classification as Substandard or Doubtful, but possess weaknesses that deserve management’s close attention, are deemed to be Special Mention. Substandard loans include those characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Risk ratings are updated any time that conditions or the situation warrants. Loans not classified are included in the “Pass” column in the table that follows.

The following tables summarize the aggregate credit quality classification of outstanding loans by risk rating as of December 31, 2022 and 2021:

December 31, 2022									Purchased
(In Thousands)			Special						Credit
	Pass		Mention		Substandard		Doubtful		Impaired		Total
Commercial:
Commercial loans secured by real estate	$	666,442	$	4,589	$	10,231	$	0	$	987	$	682,249
Commercial and Industrial		156,042		910		21,279		0		40		178,271
Paycheck Protection Program - 1st Draw		5		0		0		0		0		5
Paycheck Protection Program - 2nd Draw		163		0		0		0		0		163
Political subdivisions		90,719		0		0		0		0		90,719
Commercial construction and land		73,179		517		267		0		0		73,963
Loans secured by farmland		11,136		519		1,295		0		0		12,950
Multi-family (5 or more) residential		55,034		0		852		0		0		55,886
Agricultural loans		1,831		28		576		0		0		2,435
Other commercial loans		14,857		0		0		0		0		14,857
Total commercial		1,069,408		6,563		34,500		0		1,027		1,111,498
Residential Mortgage:
Residential mortgage loans - first liens		496,156		7,125		6,501		0		0		509,782
Residential mortgage loans - junior liens		24,495		164		290		0		0		24,949
Home equity lines of credit		43,289		59		450		0		0		43,798
1-4 Family residential construction		30,577		0		0		0		0		30,577
Total residential mortgage		594,517		7,348		7,241		0		0		609,106
Consumer		19,350		0		86		0		0		19,436
Totals	$	1,683,275	$	13,911	$	41,827	$	0	$	1,027	$	1,740,040

December 31, 2021									Purchased
(In Thousands)			Special						Credit
	Pass		Mention		Substandard		Doubtful		Impaired		Total
Commercial:
Commercial loans secured by real estate	$	538,966	$	10,510	$	16,220	$	0	$	4,144	$	569,840
Commercial and Industrial		142,775		10,841		4,694		0		763		159,073
Paycheck Protection Program - 1st Draw		1,356		0		0		0		0		1,356
Paycheck Protection Program - 2nd Draw		25,508		0		0		0		0		25,508
Political subdivisions		81,301		0		0		0		0		81,301
Commercial construction and land		59,816		715		48		0		0		60,579
Loans secured by farmland		10,011		186		924		0		0		11,121
Multi-family (5 or more) residential		47,638		0		873		0		1,578		50,089
Agricultural loans		1,802		0		549		0		0		2,351
Other commercial loans		17,150		3		0		0		0		17,153
Total commercial		926,323		22,255		23,308		0		6,485		978,371
Residential Mortgage:
Residential mortgage loans - first liens		469,044		7,981		6,534		0		70		483,629
Residential mortgage loans - junior liens		22,914		114		283		0		3		23,314
Home equity lines of credit		38,652		59		541		0		0		39,252
1-4 Family residential construction		23,151		0		0		0		0		23,151
Total residential mortgage		553,761		8,154		7,358		0		73		569,346
Consumer		17,092		0		40		0		0		17,132
Totals	$	1,497,176	$	30,409	$	30,706	$	0	$	6,558	$	1,564,849

The increase in substandard loans at December 31, 2022 as compared to December 31, 2021 includes advances under lines of credit to a commercial borrower totaling $10,799,000 at December 31, 2022, which were classified as impaired and nonaccrual. Based on an

analysis of the liquidation value of business assets that collateralize the lines of credit, there was no specific allowance related to these advances at December 31, 2022.

The following tables present a summary of loan balances and the related allowance for loan losses summarized by portfolio segment and class for each impairment method used as of December 31, 2022 and 2021:

December 31, 2022	Loans:						Allowance for Loan Losses:
(In Thousands)
	Individually		Collectively				Individually		Collectively
	Evaluated		Evaluated		Totals		Evaluated		Evaluated		Totals
Commercial:
Commercial loans secured by real estate	$	7,154	$	675,095	$	682,249	$	427	$	6,647	$	7,074
Commercial and industrial		11,223		167,048		178,271		26		2,883		2,909
Paycheck Protection Program - 1st Draw		0		5		5		0		0		0
Paycheck Protection Program - 2nd Draw		0		163		163		0		0		0
Political subdivisions		0		90,719		90,719		0		0		0
Commercial construction and land		244		73,719		73,963		0		647		647
Loans secured by farmland		76		12,874		12,950		0		112		112
Multi-family (5 or more) residential		0		55,886		55,886		0		411		411
Agricultural loans		57		2,378		2,435		0		21		21
Other commercial loans		0		14,857		14,857		0		124		124
Total commercial		18,754		1,092,744		1,111,498		453		10,845		11,298
Residential mortgage:
Residential mortgage loans - first liens		506		509,276		509,782		0		3,413		3,413
Residential mortgage loans - junior liens		30		24,919		24,949		0		167		167
Home equity lines of credit		68		43,730		43,798		0		282		282
1-4 Family residential construction		0		30,577		30,577		0		211		211
Total residential mortgage		604		608,502		609,106		0		4,073		4,073
Consumer		0		19,436		19,436		0		244		244
Unallocated												1,000
Total	$	19,358	$	1,720,682	$	1,740,040	$	453	$	15,162	$	16,615

December 31, 2021	Loans:						Allowance for Loan Losses:
(In Thousands)
	Individually		Collectively				Individually		Collectively
	Evaluated		Evaluated		Totals		Evaluated		Evaluated		Totals
Commercial:
Commercial loans secured by real estate	$	10,926	$	558,914	$	569,840	$	669	$	3,736	$	4,405
Commercial and industrial		2,503		156,570		159,073		71		2,652		2,723
Paycheck Protection Program - 1st Draw		0		1,356		1,356		0		0		0
Paycheck Protection Program - 2nd Draw		0		25,508		25,508		0		0		0
Political subdivisions		0		81,301		81,301		0		0		0
Commercial construction and land		0		60,579		60,579		0		637		637
Loans secured by farmland		83		11,038		11,121		0		115		115
Multi-family (5 or more) residential		1,578		48,511		50,089		0		215		215
Agricultural loans		0		2,351		2,351		0		25		25
Other commercial loans		0		17,153		17,153		0		173		173
Total commercial		15,090		963,281		978,371		740		7,553		8,293
Residential mortgage:
Residential mortgage loans - first liens		630		482,999		483,629		0		3,650		3,650
Residential mortgage loans - junior liens		14		23,300		23,314		0		184		184
Home equity lines of credit		0		39,252		39,252		0		302		302
1-4 Family residential construction		0		23,151		23,151		0		202		202
Total residential mortgage		644		568,702		569,346		0		4,338		4,338
Consumer		0		17,132		17,132		0		235		235
Unallocated												671
Total	$	15,734	$	1,549,115	$	1,564,849	$	740	$	12,126	$	13,537

Summary information related to impaired loans as of December 31, 2022 and 2021 is as follows:

(In Thousands)	December 31, 2022						December 31, 2021
	Unpaid						Unpaid
	Principal		Recorded		Related		Principal		Recorded		Related
	Balance		Investment		Allowance		Balance		Investment		Allowance
With no related allowance recorded:
Commercial loans secured by real estate	$	8,563	$	3,754	$	0	$	6,600	$	4,458	$	0
Commercial and industrial		12,926		11,163		0		5,213		2,431		0
Residential mortgage loans - first liens		506		506		0		656		630		0
Residential mortgage loans - junior liens		68		30		0		124		14		0
Home equity lines of credit		68		68		0		0		0		0
Loans secured by farmland		76		76		0		83		83		0
Agricultural loans		57		57		0		0		0		0
Construction and other land loans		244		244		0		0		0		0
Multi-family (5 or more) residential		0		0		0		2,734		1,578		0
Total with no related allowance recorded		22,508		15,898		0		15,410		9,194		0
With a related allowance recorded:
Commercial loans secured by real estate		3,400		3,400		427		6,468		6,468		668
Commercial and industrial		60		60		26		72		72		72
Total with a related allowance recorded		3,460		3,460		453		6,540		6,540		740
Total	$	25,968	$	19,358	$	453	$	21,950	$	15,734	$	740

The average balance of impaired loans and interest income recognized on impaired loans is as follows:

(In Thousands)							Interest Income Recognized on
	Average Investment in						on Impaired Loans
	Impaired Loans						on a Cash Basis
	Year Ended December 31,						Year Ended December 31,
	2022		2021		2020		2022		2021		2020
Commercial:
Commercial loans secured by real estate	$	9,757	$	11,617	$	5,266	$	657	$	557	$	258
Commercial and industrial		2,078		2,636		2,542		210		34		34
Commercial construction and land		72		48		521		3		3		15
Loans secured by farmland		80		84		319		0		1		27
Multi-family (5 or more) residential		197		1,583		202		1,156		133		0
Agricultural loans		60		67		76		4		4		4
Other commercial loans		0		0		18		0		0		1
Total commercial		12,244		16,035		8,944		2,030		732		339
Residential mortgage:
Residential mortgage loans - first lien		575		1,647		1,853		24		78		116
Residential mortgage loans - junior lien		33		361		392		7		11		22
Home equity lines of credit		43		0		57		4		0		3
Total residential mortgage		651		2,008		2,302		35		89		141
Total	$	12,895	$	18,043	$	11,246	$	2,065	$	821	$	480

The increase in interest income recognized on a cash basis on impaired loans in 2022 resulted mainly from repayments received on loans that had been classified as purchased credit impaired at December 31, 2021.

The breakdown by portfolio segment and class of nonaccrual loans and loans past due ninety days or more and still accruing is as follows:

(In Thousands)	December 31, 2022				December 31, 2021
	Past Due				Past Due
	90+ Days and				90+ Days and
	Accruing		Nonaccrual		Accruing		Nonaccrual
Commercial:
Commercial loans secured by real estate	$	612	$	7,153	$	738	$	10,885
Commercial and industrial		80		11,165		30		2,299
Commercial construction and land		0		244		0		48
Loans secured by farmland		0		76		28		83
Multi-family (5 or more) residential		0		0		0		1,578
Agricultural loans		57		0		65		0
Total commercial		749		18,638		861		14,893
Residential mortgage:
Residential mortgage loans - first liens		1,288		4,259		1,144		4,005
Residential mortgage loans - junior liens		54		0		69		3
Home equity lines of credit		102		129		102		82
Total residential mortgage		1,444		4,388		1,315		4,090
Consumer		44		59		43		16
Totals	$	2,237	$	23,085	$	2,219	$	18,999

The amounts shown in the table immediately above include loans classified as troubled debt restructurings (described in more detail below), if such loans are past due ninety days or more or nonaccrual. PCI loans with a total recorded investment of $1,027,000 at December 31, 2022 and $6,558,000 at December 31, 2021 are classified as nonaccrual.

The table below presents a summary of the contractual aging of loans as of December 31, 2022 and 2021.

(In Thousands)	As of December 31, 2022								As of December 31, 2021
	Current &								Current &
	Past Due		Past Due		Past Due				Past Due		Past Due		Past Due
	Less than		30-89		90+				Less than		30-89		90+
	30 Days		Days		Days		Total		30 Days		Days		Days		Total
Commercial:
Commercial loans secured by real estate	$	676,779	$	1,105	$	4,365	$	682,249	$	563,658	$	762	$	5,420	$	569,840
Commercial and industrial		177,747		319		205		178,271		158,188		72		813		159,073
Paycheck Protection Program - 1st Draw		5		0		0		5		1,339		17		0		1,356
Paycheck Protection Program - 2nd Draw		163		0		0		163		25,508		0		0		25,508
Political subdivisions		90,719		0		0		90,719		81,301		0		0		81,301
Commercial construction and land		73,766		0		197		73,963		60,509		70		0		60,579
Loans secured by farmland		12,856		18		76		12,950		11,010		0		111		11,121
Multi-family (5 or more) residential		55,886		0		0		55,886		48,532		0		1,557		50,089
Agricultural loans		2,378		0		57		2,435		2,279		7		65		2,351
Other commercial loans		14,857		0		0		14,857		17,153		0		0		17,153
Total commercial		1,105,156		1,442		4,900		1,111,498		969,477		928		7,966		978,371
Residential mortgage:
Residential mortgage loans - first liens		500,778		5,323		3,681		509,782		475,637		5,038		2,954		483,629
Residential mortgage loans - junior liens		24,702		193		54		24,949		23,229		16		69		23,314
Home equity lines of credit		42,952		652		194		43,798		38,830		279		143		39,252
1-4 Family residential construction		30,577		0		0		30,577		23,151		0		0		23,151
Total residential mortgage		599,009		6,168		3,929		609,106		560,847		5,333		3,166		569,346
Consumer		19,169		164		103		19,436		17,001		72		59		17,132
Totals	$	1,723,334	$	7,774	$	8,932	$	1,740,040	$	1,547,325	$	6,333	$	11,191	$	1,564,849

Nonaccrual loans are included in the contractual aging immediately above. A summary of the contractual aging of nonaccrual loans at December 31, 2022 and 2021 is as follows:

(In Thousands)	Current &
	Past Due		Past Due		Past Due
	Less than		30-89		90+
	30 Days		Days		Days		Total
December 31, 2022 Nonaccrual Totals	$	15,695	$	695	$	6,695	$	23,085
December 31, 2021 Nonaccrual Totals	$	8,800	$	1,227	$	8,972	$	18,999

Loans whose terms are modified are classified as TDRs if the Corporation grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Loans classified as TDRs are designated as impaired. The outstanding balance of loans subject to TDRs, as well as the contractual aging information at December 31, 2022 and 2021 is as follows:

Troubled Debt Restructurings (TDRs):

(In Thousands)	Current &
	Past Due		Past Due		Past Due
	Less than		30-89		90+
	30 Days		Days		Days		Nonaccrual		Total
December 31, 2022 Totals	$	503	$	68	$	57	$	3,799	$	4,427
December 31, 2021 Totals	$	248	$	40	$	65	$	5,452	$	5,805

At December 31, 2022 and 2021, there were no commitments to loan additional funds to borrowers whose loans have been classified as TDRs.

A summary of TDRs that occurred during 2022, 2021 and 2020 is as follows:

(Balances in Thousands)	2022			2021			2020
		Post-			Post-			Post-
	Number	Modification		Number	Modification		Number	Modification
	of	Recorded		of	Recorded		of	Recorded
	Loans	Investment		Loans	Investment		Loans	Investment
Residential mortgage - first liens:
Reduced monthly payments and extended maturity date	0	$	0	1	$	12	0	$	0
Reduced monthly payments for a fifteen-month period	0		0	1		116	0		0
Residential mortgage - junior liens:
Reduced monthly payments and extended maturity date	1		48	0		0	0		0
New loan at lower than risk-adjusted market rate to borrower from whom short sale of other collateral was accepted	0		0	0		0	1		30
Home equity lines of credit:
Reduced monthly payments and extended maturity date	0		0	1		24	0		0
Reduced monthly payments for an eighteen-month period	0		0	1		70	0		0
Commercial loans secured by real estate:
Interest only payments for a nine-month period	0		0	0		0	1		240
Principal and interest payment deferral non-COVID related	0		0	0		0	2		4,831
Multi-family (5 or more) residential,
Principal and interest payment deferral non-COVID related	0		0	0		0	3		2,170
Loans secured by farmland,
Deferral of principal and interest payments for 12 months with a balloon payment at maturity	1		268	0		0	0		0
Total	2	$	316	4	$	222	7	$	7,271

In the year ended December 31, 2020, the Corporation recorded a specific allowance for loan losses of $416,000 related to a loan secured by commercial real estate for which a TDR concession was made in 2020 and included in the table above. In 2021, the allowance on this loan with a recorded investment of $3,405,000 at December 31, 2021 was increased to $427,000. At December 31, 2022 the allowance on this loan with a recorded investment of $3,400,000 remained $427,000. The other loans for which TDRs were granted in 2022, 2021 and 2020 had no specific impact on the provision or allowance for loan losses.

In 2022, 2021 and 2020, payment defaults on loans for which modifications considered to be TDRs were entered into within the previous 12 months are summarized as follows:

	2022			2021			2020
	Number			Number			Number
	of	Recorded		of	Recorded		of	Recorded
(Balances in Thousands)	Loans	Investment		Loans	Investment		Loans	Investment
Commercial loans secured by real estate	0	$	0	1	$	3,405	1	$	240
Total	0	$	0	1	$	3,405	1	$	240

The default that occurred in 2021 was on the loan referred to above with a specific allowance of $427,000 at December 31, 2022. The loan for which a default occurred in 2020 was repaid in full in 2021.

The carrying amount of foreclosed residential real estate properties held as a result of obtaining physical possession (included in Foreclosed assets held for sale in the consolidated balance sheets) is as follows:

(In Thousands)	December 31,		December 31,
	2022		2021
Foreclosed residential real estate	$	0	$	256

The recorded investment of consumer mortgage loans secured by residential real properties for which formal foreclosure proceedings were in process is as follows:

(In Thousands)	December 31,		December 31,
	2022		2021
Residential real estate in process of foreclosure	$	1,229	$	1,260