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LOANS

3 Months Ended

Mar. 31, 2022

6. LOANS

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


	March 31,		December 31,
	2022		2021
Commercial:
Commercial loans secured by real estate	$	585,677	$	569,840
Commercial and industrial		159,793		159,073
Paycheck Protection Program - 1st Draw		887		1,356
Paycheck Protection Program - 2nd Draw		11,490		25,508
Political subdivisions		81,975		81,301
Commercial construction and land		37,258		60,579
Loans secured by farmland		12,507		11,121
Multi-family (5 or more) residential		53,141		50,089
Agricultural loans		2,588		2,351
Other commercial loans		14,827		17,153
Total commercial		960,143		978,371
Residential mortgage:
Residential mortgage loans - first liens		481,119		483,629
Residential mortgage loans - junior liens		22,572		23,314
Home equity lines of credit		39,649		39,252
1-4 Family residential construction		16,945		23,151
Total residential mortgage		560,285		569,346
Consumer		17,762		17,132
Total		1,538,190		1,564,849
Less: allowance for loan losses		(14,271)		(13,537)
Loans, net	$	1,523,919	$	1,551,312

In the table above, outstanding loan balances are presented net of deferred loan origination fees, net, of $3,735,000 at March 31, 2022 and $4,427,000 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. 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 includes 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 will be 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 March 31, 2022, the recorded investment in 1st Draw PPP loans was $887,000, including contractual principal balances of $905,000, reduced by net deferred origination fees of $18,000. The recorded investment in 2nd Draw PPP loans was $11,490,000, including contractual principal balances of $11,847,000 reduced by net deferred origination fees of $357,000. Interest and fees on PPP loans which are included in taxable interest and fees on loans in the unaudited consolidated statements of income totaled $575,000 in the three-month period ended March 31, 2022 and $1,998,000 in the three-month period ended March 31, 2021.

Acquired loans were initially recorded at fair value, with adjustments made to gross amortized cost based on movements in interest rates (market rate adjustment) and based on credit fair value adjustments on non-impaired loans and impaired loans. Subsequently, 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 three-month periods ended March 31, 2022 and 2021, adjustments to the initial market rate and credit fair value adjustments of performing loans were recognized as follows:


(In Thousands)	Three Months Ended
	March 31,		March 31,
	2022		2021
Market Rate Adjustment
Adjustments to gross amortized cost of loans at beginning of period	$	(637)	$	718
Amortization recognized in interest income		(248)		(366)
Adjustments to gross amortized cost of loans at end of period	$	(885)	$	352
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		553		797
Adjustments to gross amortized cost of loans at end of period	$	(2,782)	$	(5,182)

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


(In Thousands)	March 31,		December 31,
	2022		2021
Outstanding balance	$	5,966	$	9,802
Carrying amount		3,983		6,558

In the three-month period ended March 31, 2022, the Corporation received repayments on PCI loans in excess of previous carrying amounts, resulting in income of $1,398,000. This amount is included in interest and fees on taxable loans in the unaudited consolidated statements of income. There was no corresponding income from repayments on PCI loans in the three-month period ended March 31, 2021.

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, 2022 and December 31, 2021, management determined that no 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, 2022 and 2021 were as follows:


Three Months Ended March 31, 2022	December 31, 2021								March 31, 2022
(In Thousands)	Balance		Charge-offs		Recoveries		Provision (Credit)		Balance
Allowance for Loan Losses:
Commercial:
Commercial loans secured by real estate	$	4,405	$	0	$	0	$	612	$	5,017
Commercial and industrial		2,723		(150)		0		268		2,841
Commercial construction and land		637		0		0		(246)		391
Loans secured by farmland		115		0		0		14		129
Multi-family (5 or more) residential		215		0		0		152		367
Agricultural loans		25		0		0		2		27
Other commercial loans		173		0		0		(23)		150
Total commercial		8,293		(150)		0		779		8,922
Residential mortgage:
Residential mortgage loans - first liens		3,650		0		1		159		3,810
Residential mortgage loans - junior liens		184		0		0		(3)		181
Home equity lines of credit		302		0		15		(11)		306
1-4 Family residential construction		202		0		0		(54)		148
Total residential mortgage		4,338		0		16		91		4,445
Consumer		235		(30)		7		25		237
Unallocated		671		0		0		(4)		667
Total Allowance for Loan Losses	$	13,537	$	(180)	$	23	$	891	$	14,271


Three Months Ended March 31, 2021	December 31, 2020								March 31, 2021
(In Thousands)	Balance		Charge-offs		Recoveries		Provision (Credit)		Balance
Allowance for Loan Losses:
Commercial:
Commercial loans secured by real estate	$	3,051	$	0	$	0	$	299	$	3,350
Commercial and industrial		2,245		0		14		(72)		2,187
Commercial construction and land		454		0		0		22		476
Loans secured by farmland		120		0		0		(9)		111
Multi-family (5 or more) residential		236		0		0		19		255
Agricultural loans		34		0		0		(8)		26
Other commercial loans		168		0		0		(9)		159
Total commercial		6,308		0		14		242		6,564
Residential mortgage:
Residential mortgage loans - first liens		3,524		0		1		(18)		3,507
Residential mortgage loans - junior liens		349		0		0		(15)		334
Home equity lines of credit		281		0		1		(1)		281
1-4 Family residential construction		99		0		0		(21)		78
Total residential mortgage		4,253		0		2		(55)		4,200
Consumer		239		(11)		12		(20)		220
Unallocated		585		0		0		92		677
Total Allowance for Loan Losses	$	11,385	$	(11)	$	28	$	259	$	11,661

For the three months ended March 31, 2022, the provision for loan losses was $891,000, an increase in expense of $632,000 as compared to $259,000 for the three months ended March 31, 2021. The first quarter 2022 provision included a net charge of $147,000 related to specific loans (net charge-offs of $157,000 offset by a net decrease in specific allowances on loans of $10,000), an increase of $748,000 in the collectively determined portion of the allowance and a decrease of $4,000 in the unallocated portion of the allowance. The increase in the collectively determined portion of the allowance reflected the impact of an increase in volume of commercial loans, excluding PPP loans. The first quarter 2021 provision included a net charge of $182,000 related to specific loans (increase in specific allowances on loans of $199,000, partially offset by net recoveries of $17,000), an increase of $92,000 in the unallocated portion of the allowance and a reduction of $15,000 attributable to decreases in the collectively determined portion 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, 2022 and December 31, 2021:


March 31, 2022									Purchased
(In Thousands)			Special						Credit
	Pass		Mention		Substandard		Doubtful		Impaired		Total
Commercial:
Commercial loans secured by real estate	$	547,705	$	18,000	$	16,098	$	0	$	3,874	$	585,677
Commercial and Industrial		144,864		11,030		3,860		0		39		159,793
Paycheck Protection Program - 1st Draw		887		0		0		0		0		887
Paycheck Protection Program - 2nd Draw		11,490		0		0		0		0		11,490
Political subdivisions		81,975		0		0		0		0		81,975
Commercial construction and land		36,496		714		48		0		0		37,258
Loans secured by farmland		11,319		287		901		0		0		12,507
Multi-family (5 or more) residential		52,274		0		867		0		0		53,141
Agricultural loans		2,054		0		534		0		0		2,588
Other commercial loans		14,826		1		0		0		0		14,827
Total commercial		903,890		30,032		22,308		0		3,913		960,143
Residential Mortgage:
Residential mortgage loans - first liens		466,862		7,548		6,640		0		69		481,119
Residential mortgage loans - junior liens		22,182		57		332		0		1		22,572
Home equity lines of credit		38,961		59		629		0		0		39,649
1-4 Family residential construction		16,945		0		0		0		0		16,945
Total residential mortgage		544,950		7,664		7,601		0		70		560,285
Consumer		17,713		0		49		0		0		17,762
Totals	$	1,466,553	$	37,696	$	29,958	$	0	$	3,983	$	1,538,190


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 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, 2022 and December 31, 2021.


March 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	$	10,593	$	575,084	$	585,677	$	658	$	4,359	$	5,017
Commercial and industrial		664		159,129		159,793		72		2,769		2,841
Paycheck Protection Program - 1st Draw		0		887		887		0		0		0
Paycheck Protection Program - 2nd Draw		0		11,490		11,490		0		0		0
Political subdivisions		0		81,975		81,975		0		0		0
Commercial construction and land		48		37,210		37,258		0		391		391
Loans secured by farmland		82		12,425		12,507		0		129		129
Multi-family (5 or more) residential		0		53,141		53,141		0		367		367
Agricultural loans		60		2,528		2,588		0		27		27
Other commercial loans		0		14,827		14,827		0		150		150
Total commercial		11,447		948,696		960,143		730		8,192		8,922
Residential mortgage:
Residential mortgage loans - first liens		523		480,596		481,119		0		3,810		3,810
Residential mortgage loans - junior liens		35		22,537		22,572		0		181		181
Home equity lines of credit		0		39,649		39,649		0		306		306
1-4 Family residential construction		0		16,945		16,945		0		148		148
Total residential mortgage		558		559,727		560,285		0		4,445		4,445
Consumer		0		17,762		17,762		0		237		237
Unallocated												667

Total	$	12,005	$	1,526,185	$	1,538,190	$	730	$	12,874	$	14,271


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 at March 31, 2022 and December 31, 2021 is provided in the table immediately below.


(In Thousands)	March 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	$	6,253	$	4,137	$	0	$	6,600	$	4,458	$	0
Commercial and industrial		3,199		592		0		5,213		2,431		0
Residential mortgage loans - first liens		637		523		0		656		630		0
Residential mortgage loans - junior liens		142		35		0		124		14		0
Loans secured by farmland		82		82		0		83		83		0
Agricultural loans		60		60		0		0		0		0
Construction and other land loans		48		48		0		0		0		0
Multi-family (5 or more) residential		0		0		0		2,734		1,578		0
Total with no related allowance recorded		10,421		5,477		0		15,410		9,194		0

With a related allowance recorded:
Commercial loans secured by real estate		6,456		6,456		658		6,468		6,468		668
Commercial and industrial		72		72		72		72		72		72
Total with a related allowance recorded		6,528		6,528		730		6,540		6,540		740
Total	$	16,949	$	12,005	$	730	$	21,950	$	15,734	$	740

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
	Three Months Ended				Three Months Ended
	March 31,				March 31,
	2022		2021		2022		2021
Commercial:
Commercial loans secured by real estate	$	10,735	$	12,203	$	129	$	143
Commercial and industrial		1,626		1,082		4		12
Commercial construction and land		48		49		1		1
Loans secured by farmland		82		84		0		1
Multi-family (5 or more) residential		789		1,596		0		61
Agricultural loans		63		69		2		2
Total commercial		13,343		15,083		136		220
Residential mortgage:
Residential mortgage loans - first lien		565		2,451		7		37
Residential mortgage loans - junior lien		37		437		1		5
Home equity lines of credit		0		18		1		0
Total residential mortgage		602		2,906		9		42
Total	$	13,945	$	17,989	$	145	$	262

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, 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	$	1,217	$	10,593	$	738	$	10,885
Commercial and industrial		788		376		30		2,299
Commercial construction and land		0		47		0		48
Loans secured by farmland		0		81		28		83
Multi-family (5 or more) residential		0		0		0		1,578
Agricultural loans		60		0		65		0
Total commercial		2,065		11,097		861		14,893
Residential mortgage:
Residential mortgage loans - first liens		1,139		3,638		1,144		4,005
Residential mortgage loans - junior liens		76		2		69		3
Home equity lines of credit		102		167		102		82
Total residential mortgage		1,317		3,807		1,315		4,090
Consumer		47		41		43		16
Totals	$	3,429	$	14,945	$	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 $3,983,000 at March 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 March 31, 2022 and December 31, 2021. Loans modified under the Corporation’s program designed to work with clients impacted by COVID-19 are included in the current and past due less than 30 days category in the table that follows.


(In Thousands)	As of March 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	$	579,837	$	192	$	5,648	$	585,677	$	563,658	$	762	$	5,420	$	569,840
Commercial and industrial		159,613		75		105		159,793		158,188		72		813		159,073
Paycheck Protection Program - 1st Draw		145		0		742		887		1,339		17		0		1,356
Paycheck Protection Program - 2nd Draw		11,490		0		0		11,490		25,508		0		0		25,508
Political subdivisions		81,975		0		0		81,975		81,301		0		0		81,301
Commercial construction and land		37,083		128		47		37,258		60,509		70		0		60,579
Loans secured by farmland		12,426		0		81		12,507		11,010		0		111		11,121
Multi-family (5 or more) residential		53,141		0		0		53,141		48,532		0		1,557		50,089
Agricultural loans		2,528		0		60		2,588		2,279		7		65		2,351
Other commercial loans		14,827		0		0		14,827		17,153		0		0		17,153
Total commercial		953,065		395		6,683		960,143		969,477		928		7,966		978,371

Residential mortgage:
Residential mortgage loans - first liens		473,710		5,142		2,267		481,119		475,637		5,038		2,954		483,629
Residential mortgage loans - junior liens		22,457		39		76		22,572		23,229		16		69		23,314
Home equity lines of credit		39,314		233		102		39,649		38,830		279		143		39,252
1-4 Family residential construction		16,945		0		0		16,945		23,151		0		0		23,151
Total residential mortgage		552,426		5,414		2,445		560,285		560,847		5,333		3,166		569,346
Consumer		17,626		48		88		17,762		17,001		72		59		17,132
Totals	$	1,523,117	$	5,857	$	9,216	$	1,538,190	$	1,547,325	$	6,333	$	11,191	$	1,564,849

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, 2022 and December 31, 2021 is as follows:


(In Thousands)	Current &
	Past Due		Past Due		Past Due
	Less than		30-89		90+
	30 Days		Days		Days		Total
March 31, 2022 Nonaccrual Totals	$	7,169	$	1,989	$	5,787	$	14,945
December 31, 2021 Nonaccrual Totals	$	8,800	$	1,227	$	8,972	$	18,999

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, 2022 and December 31, 2021 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, 2022 Totals	$	243	$	36	$	60	$	3,894	$	4,233
December 31, 2021 Totals	$	248	$	40	$	65	$	5,452	$	5,805

At March 31, 2022 and December 31, 2021, there were no 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, 2022 and 2021 are as follows:


(Balances in Thousands)	Three Months Ended			Three Months Ended
	March 31, 2022			March 31, 2021
		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	$	12
Consumer,
Reduced monthly payments and extended maturity date	0		0	1		24
Total	0	$	0	2	$	36

In the three-month periods ended March 31, 2022 and 2021, defaults on loans for which modifications that were considered to be TDR and were entered into within the previous 12 months are summarized as follows:


(Balances in Thousands)	Three Months Ended			Three Months Ended
	March 31, 2022			March 31, 2021
	Number			Number
	of	Recorded		of	Recorded
	Loans	Investment		Loans	Investment
Commercial loans secured by real estate	0	$	0	1	$	3,392
Total	0	$	0	1	$	3,392

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,		December 31,
	2022		2021
Foreclosed residential real estate	$	256	$	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)	March 31,		December 31,
	2022		2021
Residential real estate in process of foreclosure	$	1,547	$	1,260