LOANS

The loans receivable portfolio is segmented into residential mortgage, commercial and consumer loans. Loans outstanding at

March 31, 2020

and

December 31, 2019

are summarized by segment, and by classes within each segment, as follows:

Summary of Loans by Type

(In Thousands)

	March 31,			Dec. 31,
	2020			2019
Residential mortgage:
Residential mortgage loans - first liens	$	508,387		$	510,641
Residential mortgage loans - junior liens		27,028			27,503
Home equity lines of credit		32,090			33,638
1-4 Family residential construction		14,121			14,798
Total residential mortgage		581,626			586,580
Commercial:
Commercial loans secured by real estate		295,860			301,227
Commercial and industrial		132,308			126,374
Political subdivisions		43,613			53,570
Commercial construction and land		33,340			33,555
Loans secured by farmland		11,524			12,251
Multi-family (5 or more) residential		32,370			31,070
Agricultural loans		3,886			4,319
Other commercial loans		16,430			16,535
Total commercial		569,331			578,901
Consumer		16,516			16,741
Total		1,167,473			1,182,222
Less: allowance for loan losses		(11,330	)		(9,836	)
Loans, net	$	1,156,143		$	1,172,386

In the table above, outstanding loan balances are presented net of deferred loan origination fees, net, of

$2,492,000

March 31, 2020

and

$2,482,000

December 31, 2019.

Effective

April 1, 2019,

the Corporation acquired loans pursuant to the acquisition of Monument. The loans acquired from Monument were recorded at an initial fair value of

$259,295,000.

The gross amortized cost of loans acquired from Monument on

April 1, 2019

was reduced

$1,807,000

based on movements in interest rates (market rate adjustment) and was also reduced

$1,914,000

based on a credit fair value adjustment on non-impaired loans and by

$318,000

based on a credit fair value adjustment on impaired loans. In the last

three

quarters of

2019,

the Corporation recognized accretion of a portion of the market rate adjustment and credit adjustment on non-impaired loans, and a partial recovery of purchased credit impaired (PCI) loans. In the

first

quarter

2020,

adjustments to the initial market rate and credit fair value adjustments were recognized as follows:

(In Thousands)				Credit
	Market			Adjustment on
	Rate			Non-impaired
	Adjustment			Loans
Adjustments to gross amortized cost of loans at December 31, 2019	$	(1,415	)	$	(1,216	)
Accretion recognized in interest income		147			205
Adjustments to gross amortized cost of loans at March 31, 2020	$	(1,268	)	$	(1,011	)

Loans acquired from Monument that were identified as having a deterioration in credit quality (purchased credit impaired, or PCI) were valued at

$441,000

April 1, 2019,

which was

$318,000

lower than the total outstanding balance of the loans. The fair values of all of the PCI loans were determined based on the estimated realizable value of underlying real estate collateral, net of estimated selling cost. In the

first

quarter

2020,

the Corporation recorded interest income of

$112,000

from the excess of proceeds received on the pay-off of PCI loans over their carrying amounts. A summary of PCI loans held at

March 31, 2020

and

December 31, 2019

is as follows:

(In Thousands)
	March 31,		December 31,
	2020		2019
Outstanding balance	$	408	$	759
Carrying amount		305		441

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 and southeastern 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. There is

concentration of loans to borrowers engaged in similar businesses or activities that exceed

10%

of total loans at either

March 31, 2020

December 31, 2019.

The Corporation maintains an allowance for loan losses that represents management’s estimate of the losses inherent in the loan portfolio as of the balance sheet date and recorded as a reduction of the investment in loans. The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the Corporation’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that

may

affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that

may

be susceptible to significant revision as more information becomes available. In the process of evaluating the loan portfolio, management also considers the Corporation’s exposure to losses from unfunded loan commitments. As of

March 31, 2020,

and

December 31, 2019,

management determined that

allowance for credit losses related to unfunded loan commitments was required.

Transactions within the allowance for loan losses, summarized by segment and class, for the

three

-month periods ended

March 31, 2020

and

2019

were as follows:

Three Months Ended

March 31, 2020

(In Thousands)

	Dec. 31,										March 31,
	2019 Balance		Charge-offs			Recoveries		Provision (Credit)			2020 Balance
Allowance for Loan Losses:
Residential mortgage:
Residential mortgage loans - first liens	$	3,405	$	0		$	1	$	166		$	3,572
Residential mortgage loans - junior liens		384		0			1		29			414
Home equity lines of credit		276		0			1		1			278
1-4 Family residential construction		117		0			0		2			119
Total residential mortgage		4,182		0			3		198			4,383
Commercial:
Commercial loans secured by real estate		1,921		0			0		11			1,932
Commercial and industrial		1,391		(17	)		0		1,271			2,645
Commercial construction and land		966		0			0		4			970
Loans secured by farmland		158		0			0		(14	)		144
Multi-family (5 or more) residential		156		0			0		43			199
Agricultural loans		41		0			0		(2	)		39
Other commercial loans		155		0			0		5			160
Total commercial		4,788		(17	)		0		1,318			6,089
Consumer		281		(31	)		11		12			273
Unallocated		585		0			0		0			585
Total Allowance for Loan Losses	$	9,836	$	(48	)	$	14	$	1,528		$	11,330

Three Months Ended

March 31, 2019

(In Thousands)

	Dec. 31,										March 31,
	2018 Balance		Charge-offs			Recoveries		Provision (Credit)			2019 Balance
Allowance for Loan Losses:
Residential mortgage:
Residential mortgage loans - first liens	$	3,156	$	(50	)	$	1	$	71		$	3,178
Residential mortgage loans - junior liens		325		(24	)		0		28			329
Home equity lines of credit		302		0			3		(19	)		286
1-4 Family residential construction		203		0			0		(5	)		198
Total residential mortgage		3,986		(74	)		4		75			3,991
Commercial:
Commercial loans secured by real estate		2,538		0			0		(651	)		1,887
Commercial and industrial		1,553		0			2		(486	)		1,069
Commercial construction and land		110		0			0		4			114
Loans secured by farmland		102		0			0		(4	)		98
Multi-family (5 or more) residential		114		0			0		(2	)		112
Agricultural loans		46		0			0		(3	)		43
Other commercial loans		128		0			0		(7	)		121
Total commercial		4,591		0			2		(1,149	)		3,444
Consumer		233		(37	)		9		31			236
Unallocated		499		0			0		86			585
Total Allowance for Loan Losses	$	9,309	$	(111	)	$	15	$	(957	)	$	8,256

In the evaluation of the loan portfolio, management determines

two

major components for the allowance for loan losses – (

) a specific component based on an assessment of certain larger relationships, mainly commercial purpose loans, on a loan-by-loan basis; and (

) a general component for the remainder of the portfolio, except for performing loans purchased from Monument, based on a collective evaluation of pools of loans with similar risk characteristics. The general component is assigned to each pool of loans based on both historical net charge-off experience, and an evaluation of certain qualitative factors. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the above methodologies for estimating specific and general losses in the portfolio.

Performing loans acquired from Monument are presented net of a discount for credit losses of

$1,011,000

March 31, 2020

and

$1,216,000

December 31, 2019.

This discount reflects an estimate of the present value of credit losses based on market expectations at the date of acquisition of

$1,914,000,

subsequently reduced as accretion has been recognized based on estimated and actual principal pay-downs.

None

of the performing loans purchased were found to be impaired at

March 31, 2020,

and the purchased performing loans were excluded from the loan pools for which the general component of the allowance for loan losses was calculated.

In the

first

quarter

2020,

the provision for loan losses was

$1,528,000,

up from a credit (reduction in expense) to the provision of

$957,000

in the

first

quarter

2019.

In the

first

quarter

2020,

the Corporation recognized a specific allowance of

$1,193,000

related to a commercial loan with an outstanding balance of

$3.5

million at

March 31, 2020.

In total, the provision included a charge of

$1,210,000

related to specific loans (net increase in specific allowances on loans of

$1,176,000

and net charge-offs of

$34,000

), a charge of

$402,000

attributable to increases in qualitative factors and a credit of

$67,000

in the net charge-off experience factors used to estimate the allowance, and a net credit of

$17,000

from the impact of a reduction in total outstanding loans. In comparison, the Corporation recorded a credit for loan losses (reduction in expense) of

$957,000

in the

first

quarter

2019,

as specific allowances totaling

$1,365,000

December 31, 2018

two

commercial loans were eliminated. These

two

loans were

longer considered impaired at

March 31, 2019

and were returned to full accrual status in the

first

quarter

2019.

In total, the

first

quarter

2019

credit for loan losses included a net credit of

$1,011,000

related to changes in specific allowances on loans, adjusted for net charge-offs during the period, partially offset by a net increase of

$54,000

in the collectively determined and unallocated portions of the allowance for loan losses.

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. 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. 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. 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

March 31, 2020

and

December 31, 2019:

March 31, 2020

(In Thousands)

									Purchased
			Special						Credit
	Pass		Mention		Substandard		Doubtful		Impaired		Total
Residential Mortgage:
Residential Mortgage loans - first liens	$	498,803	$	305	$	9,202	$	0	$	77	$	508,387
Residential Mortgage loans - junior liens		26,367		136		525		0		0		27,028
Home Equity lines of credit		31,613		59		418		0		0		32,090
1-4 Family residential construction		14,121		0		0		0		0		14,121
Total residential mortgage		570,904		500		10,145		0		77		581,626
Commercial:
Commercial loans secured by real estate		287,783		6,191		1,658		0		228		295,860
Commercial and Industrial		117,424		8,728		6,156		0		0		132,308
Political subdivisions		43,613		0		0		0		0		43,613
Commercial construction and land		32,016		0		1,324		0		0		33,340
Loans secured by farmland		5,569		5,062		893		0		0		11,524
Multi-family (5 or more) residential		31,465		0		905		0		0		32,370
Agricultural loans		2,956		304		626		0		0		3,886
Other commercial loans		16,380		0		50		0		0		16,430
Total commercial		537,206		20,285		11,612		0		228		569,331
Consumer		16,433		0		83		0		0		16,516
Totals	$	1,124,543	$	20,785	$	21,840	$	0	$	305	$	1,167,473

December 31, 2019
(In Thousands)
									Purchased
			Special						Credit
	Pass		Mention		Substandard		Doubtful		Impaired		Total
Residential Mortgage:
Residential Mortgage loans - first liens	$	500,963	$	193	$	9,324	$	84	$	77	$	510,641
Residential Mortgage loans - junior liens		26,953		79		471		0		0		27,503
Home Equity lines of credit		33,170		59		409		0		0		33,638
1-4 Family residential construction		14,798		0		0		0		0		14,798
Total residential mortgage		575,884		331		10,204		84		77		586,580
Commercial:
Commercial loans secured by real estate		294,397		4,773		1,693		0		364		301,227
Commercial and Industrial		114,293		9,538		2,543		0		0		126,374
Political subdivisions		53,570		0		0		0		0		53,570
Commercial construction and land		32,224		0		1,331		0		0		33,555
Loans secured by farmland		6,528		4,681		1,042		0		0		12,251
Multi-family (5 or more) residential		30,160		0		910		0		0		31,070
Agricultural loans		3,343		335		641		0		0		4,319
Other commercial loans		16,416		0		119		0		0		16,535
Total commercial		550,931		19,327		8,279		0		364		578,901
Consumer		16,720		0		21		0		0		16,741
Totals	$	1,143,535	$	19,658	$	18,504	$	84	$	441	$	1,182,222

The general component of the allowance for loan losses covers pools of loans including commercial loans

not

considered individually impaired, as well as smaller balance homogeneous classes of loans, such as residential real estate, home equity lines of credit and other consumer loans. Accordingly, the Corporation generally does

not

separately identify individual consumer and residential loans for impairment disclosures, unless such a loan: (

) is subject to a restructuring agreement, or (

) has an outstanding balance of

$400,000

or more and a credit grade of Special Mention, Substandard or Doubtful. The pools of loans are evaluated for loss exposure based upon average historical net charge-off rates for each loan class, adjusted for qualitative factors (described in the following paragraphs). The time period used in determining the average historical net charge-off rate for each loan class is based on management’s evaluation of an appropriate time period that captures an historical loss experience relevant to the current portfolio. At

March 31, 2020

and

December 31, 2019,

five

-year average net charge-off rate was used for commercial loans secured by real estate and for multi-family residential loans, while a

three

-year average net charge-off rate was used for all other loan classes.

Qualitative risk factors are evaluated for the impact on each of the

three

segments (residential mortgage, commercial and consumer) within the loan portfolio. Each qualitative factor is assigned a value to reflect improving, stable or declining conditions based on management’s judgment using relevant information available at the time of the evaluation. The adjustment for qualitative factors is applied as an increase or decrease to the average net charge-off rate for each loan class within each segment.

The qualitative factors used in the general component calculations are designed to address credit risk characteristics associated with each segment. The Corporation’s credit risk associated with all of the segments is significantly impacted by these factors, which include economic conditions within its market area, the Corporation’s lending policies, changes or trends in the portfolio, risk profile, competition, regulatory requirements and other factors.

Loans are classified as impaired, when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are

not

classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial loans, by the fair value of the collateral (if the loan is collateral dependent), by future cash flows discounted at the loan’s effective rate or by the loan’s observable market price.

The scope of loans reviewed individually each quarter to determine if they are impaired include all commercial loan relationships greater than

$200,000

and any residential mortgage or consumer loans of

$400,000

or more for which there is at least

one

extension of credit graded Special Mention, Substandard or Doubtful. Loans that are individually reviewed, but which are determined to

not

be impaired, are combined with all remaining loans that are

not

reviewed on a specific basis, and such loans are included within larger pools of loans based on similar risk and loss characteristics for purposes of determining the general component of the allowance. The loans that have been individually reviewed, but which have been determined to

not

be impaired, are included in the “Collectively Evaluated” column in the table summarizing the allowance and associated loan balances as of

March 31, 2020

and

December 31, 2019.

All loans classified as troubled debt restructurings (discussed in more detail below) and all commercial loan relationships less than

$200,000

or other loan relationships less than

$400,000

in the aggregate, but with an estimated loss of

$100,000

or more, are individually evaluated for impairment.

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

March 31, 2020

and

December 31, 2019.

March 31, 2020

(In Thousands)

	Loans:								Allowance for Loan Losses:

					Purchased
	Individually		Collectively		Performing				Individually		Collectively
	Evaluated		Evaluated		Loans		Totals		Evaluated		Evaluated		Totals
Residential mortgage:
Residential mortgage loans - first liens	$	556	$	405,687	$	102,144	$	508,387	$	0	$	3,572	$	3,572
Residential mortgage loans - junior liens		367		24,755		1,906		27,028		194		220		414
Home equity lines of credit		0		30,580		1,510		32,090		0		278		278
1-4 Family residential construction		0		13,963		158		14,121		0		119		119
Total residential mortgage		923		474,985		105,718		581,626		194		4,189		4,383
Commercial:
Commercial loans secured by real estate		714		193,507		101,639		295,860		0		1,932		1,932
Commercial and industrial		4,974		124,917		2,417		132,308		1,325		1,320		2,645
Political subdivisions		0		43,613		0		43,613		0		0		0
Commercial construction and land		1,255		29,308		2,777		33,340		674		296		970
Loans secured by farmland		424		10,845		255		11,524		34		110		144
Multi-family (5 or more) residential		0		13,517		18,853		32,370		0		199		199
Agricultural loans		0		3,886		0		3,886		0		39		39
Other commercial loans		0		15,864		566		16,430		0		160		160
Total commercial		7,367		435,457		126,507		569,331		2,033		4,056		6,089
Consumer		0		16,516		0		16,516		0		273		273
Unallocated														585

Total	$	8,290	$	926,958	$	232,225	$	1,167,473	$	2,227	$	8,518	$	11,330

December 31, 2019

(In Thousands)

	Loans:								Allowance for Loan Losses:

					Purchased
	Individually		Collectively		Performing				Individually		Collectively
	Evaluated		Evaluated		Loans		Totals		Evaluated		Evaluated		Totals
Residential mortgage:
Residential mortgage loans - first liens	$	1,023	$	405,186	$	104,432	$	510,641	$	0	$	3,405	$	3,405
Residential mortgage loans - junior liens		368		24,730		2,405		27,503		176		208		384
Home equity lines of credit		0		32,147		1,491		33,638		0		276		276
1-4 Family residential construction		0		14,640		158		14,798		0		117		117
Total residential mortgage		1,391		476,703		108,486		586,580		176		4,006		4,182
Commercial:
Commercial loans secured by real estate		684		198,532		102,011		301,227		0		1,921		1,921
Commercial and industrial		1,467		122,313		2,594		126,374		149		1,242		1,391
Political subdivisions		0		53,570		0		53,570		0		0		0
Commercial construction and land		1,261		29,710		2,584		33,555		678		288		966
Loans secured by farmland		607		11,386		258		12,251		48		110		158
Multi-family (5 or more) residential		0		10,617		20,453		31,070		0		156		156
Agricultural loans		76		4,243		0		4,319		0		41		41
Other commercial loans		0		15,947		588		16,535		0		155		155
Total commercial		4,095		446,318		128,488		578,901		875		3,913		4,788
Consumer		0		16,741		0		16,741		0		281		281
Unallocated														585

Total	$	5,486	$	939,762	$	236,974	$	1,182,222	$	1,051	$	8,200	$	9,836

Summary information related to impaired loans at

March 31, 2020

and

December 31, 2019

is provided in the table immediately below. Purchased credit impaired loans are excluded from the table.

(In Thousands)

	March 31, 2020						December 31, 2019
	Unpaid						Unpaid
	Principal		Recorded		Related		Principal		Recorded		Related
	Balance		Investment		Allowance		Balance		Investment		Allowance
With no related allowance recorded:
Residential mortgage loans - first liens	$	180	$	152	$	0	$	645	$	617	$	0
Residential mortgage loans - junior liens		41		41		0		42		42		0
Commercial loans secured by real estate		714		714		0		684		684		0
Commercial and industrial		587		587		0		563		563		0
Loans secured by farmland		87		87		0		129		129		0
Agricultural loans		0		0		0		76		76		0
Total with no related allowance recorded		1,609		1,581		0		2,139		2,111		0

With a related allowance recorded:
Residential mortgage loans - first liens		404		404		0		406		406		0
Residential mortgage loans - junior liens		326		326		194		326		326		176
Commercial and industrial		4,387		4,387		1,325		904		904		149
Construction and other land loans		1,255		1,255		674		1,261		1,261		678
Loans secured by farmland		337		337		34		478		478		48
Total with a related allowance recorded		6,709		6,709		2,227		3,375		3,375		1,051
Total	$	8,318	$	8,290	$	2,227	$	5,514	$	5,486	$	1,051

In the table immediately above,

two

loans to

one

borrower are presented under the Residential mortgage loans –

first

liens and Residential mortgage loans – junior liens classes. These loans are collateralized by

one

property, and the allowance associated with these loans was determined based on an analysis of the total amounts of the Corporation’s exposure in comparison to the estimated net proceeds if the Corporation were to sell the property.

The average balance of impaired loans, excluding purchased credit impaired loans, and interest income recognized on these impaired loans is as follows:

(In Thousands)

					Interest Income Recognized on
	Average Investment in Impaired Loans				Impaired Loans on a Cash Basis
	3 Months Ended				3 Months Ended
	March 31,				March 31,
	2020		2019		2020		2019
Residential mortgage:
Residential mortgage loans - first lien	$	1,232	$	981	$	8	$	10
Residential mortgage loans - junior lien		382		291		0		2
Home equity lines of credit		65		0		1		0
Total residential mortgage		1,679		1,272		9		12
Commercial:
Commercial loans secured by real estate		387		3,040		4		10
Commercial and industrial		2,872		1,713		1		26
Commercial construction and land		1,308		0		12		0
Loans secured by farmland		516		1,442		17		1
Agricultural loans		76		660		0		12
Other commercial loans		50		0		1		0
Total commercial		5,209		6,855		35		49
Consumer		0		8		0		0
Total	$	6,888	$	8,135	$	44	$	61

Loans are placed on nonaccrual status for all classes of loans when, in the opinion of management, collection of interest is doubtful. Any unpaid interest previously accrued on those loans is reversed from income. Interest income is

not

recognized on specific impaired loans unless the likelihood of further loss is remote. Interest payments received on loans for which the risk of further loss is greater than remote are applied as a reduction of the loan principal balance. Interest income on other nonaccrual loans, including impaired loans, is recognized only to the extent of interest payments received. Generally, loans are restored to accrual status when the obligation is brought current, has performed in

accordance with the contractual terms for a reasonable period of time (generally

six

months) and the ultimate collectability of the total contractual principal and interest is

longer in doubt. The past due status of all classes of loans receivable is determined based on contractual due dates for loan payments. Also, the amortization of deferred loan fees is discontinued when a loan is placed on nonaccrual status.

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)

	March 31, 2020				December 31, 2019
	Past Due				Past Due
	90+ Days and				90+ Days and
	Accruing		Nonaccrual		Accruing		Nonaccrual
Residential mortgage:
Residential mortgage loans - first liens	$	983	$	4,818	$	878	$	4,679
Residential mortgage loans - junior liens		98		354		53		326
Home equity lines of credit		107		74		71		73
1-4 Family residential construction		0		39		0		0
Total residential mortgage		1,188		5,285		1,002		5,078
Commercial:
Commercial loans secured by real estate		496		744		107		1,148
Commercial and industrial		59		4,487		15		1,051
Commercial construction and land		0		1,305		0		1,311
Loans secured by farmland		229		424		43		565
Agricultural loans		1		0		0		0
Other commercial		0		49		0		49
Total commercial		785		7,009		165		4,124
Consumer		120		15		40		16

Totals	$	2,093	$	12,309	$	1,207	$	9,218

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.

The table below presents a summary of the contractual aging of loans as of

March 31, 2020

and

December 31, 2019:

(In Thousands)

	As of March 31, 2020								As of December 31, 2019
	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
Residential mortgage:
Residential mortgage loans - first liens	$	497,246	$	7,817	$	3,324	$	508,387	$	499,024	$	7,839	$	3,778	$	510,641
Residential mortgage loans - junior liens		26,564		40		424		27,028		27,041		83		379		27,503
Home equity lines of credit		31,509		474		107		32,090		33,115		452		71		33,638
1-4 Family residential construction		14,121		0		0		14,121		14,758		40		0		14,798
Total residential mortgage		569,440		8,331		3,855		581,626		573,938		8,414		4,228		586,580

Commercial:
Commercial loans secured by real estate		294,408		574		878		295,860		299,640		737		850		301,227
Commercial and industrial		128,435		3,742		131		132,308		126,221		16		137		126,374
Political subdivisions		43,613		0		0		43,613		53,570		0		0		53,570
Commercial construction and land		33,145		145		50		33,340		33,505		0		50		33,555
Loans secured by farmland		11,208		0		316		11,524		11,455		666		130		12,251
Multi-family (5 or more) residential		32,370		0		0		32,370		31,070		0		0		31,070
Agricultural loans		3,809		76		1		3,886		4,318		1		0		4,319
Other commercial loans		16,430		0		0		16,430		16,535		0		0		16,535
Total commercial		563,418		4,537		1,376		569,331		576,314		1,420		1,167		578,901
Consumer		16,196		185		135		16,516		16,496		189		56		16,741
Totals	$	1,149,054	$	13,053	$	5,366	$	1,167,473	$	1,166,748	$	10,023	$	5,451	$	1,182,222

Nonaccrual loans are included in the contractual aging in the immediately preceding table. A summary of the contractual aging of nonaccrual loans at

March 31, 2020

and

December 31, 2019

is as follows:

(In Thousands)

	Current &
	Past Due		Past Due		Past Due
	Less than		30-89		90+
	30 Days		Days		Days		Total
March 31, 2020 Nonaccrual Totals	$	4,355	$	4,681	$	3,273	$	12,309
December 31, 2019 Nonaccrual Totals	$	3,840	$	1,134	$	4,244	$	9,218

Loans whose terms are modified are classified as Troubled Debt Restructurings (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 contractual aging information at

March 31, 2020

and

December 31, 2019

is as follows:

(In Thousands)

	Current &
	Past Due		Past Due		Past Due
	Less than		30-89		90+
	30 Days		Days		Days		Nonaccrual		Total
March 31, 2020 Totals	$	176	$	196	$	0	$	1,730	$	2,102
December 31, 2019 Totals	$	889	$	0	$	0	$	1,737	$	2,626

March 31, 2020

and

December 31, 2019,

there were

commitments to loan additional funds to borrowers whose loans have been classified as TDRs.

TDRs that occurred during the

three

-month periods ended

March 31, 2020

and

2019

are as follows:

(Balances in Thousands)
	Three Months Ended				Three Months Ended
	March 31, 2020				March 31, 2019
			Post-				Post-
	Number		Modification		Number		Modification
	of		Recorded		of		Recorded
	Loans		Investment		Loans		Investment
Residential mortgage - first liens,
Reduced monthly payments and extended maturity date		0	$	0		1	$	271
Residential mortgage - junior liens :
Reduced monthly payments and extended maturity date		0		0		1		18
New loan at lower than risk-adjusted market rate to borrower from whom short sale of other collateral was accepted		1		30		0		0
Commercial and industrial,
Reduced monthly payments and extended maturity date		0		0		8		177
Agricultural loans,
Reduced monthly payments and extended maturity date		0		0		1		84
Total		1	$	30		11	$	550

All of the loans for which TDRs were granted in the table above in the

three

-month period ended

March 31, 2019

are associated with

one

relationship.

In the

three

-month periods ended

March 31, 2020

and

2019,

there were

defaults on loans for which modifications considered to be TDRs were entered into within the previous

months.

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 unaudited consolidated balance sheets) is as follows:

(In Thousands)
	March 31,		Dec. 31,
	2020		2019
Foreclosed residential real estate	$	130	$	292

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)
	March 31,		Dec. 31,
	2020		2019
Residential real estate in process of foreclosure	$	1,779	$	1,717