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LOANS | 9 Months Ended
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Sep. 30, 2022
LOANS |
LOANS | 6. LOANS The loans receivable portfolio is segmented into commercial, residential mortgage and consumer loans. Loans outstanding at September 30, 2022 and December 31, 2021 are summarized by segment, and by classes within each segment, as follows: Summary of Loans by Type (In Thousands) ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 30, |  | December 31,
​ | ​ | 2022 | ​ | 2021
Commercial: | ​ |  |  | ​ |  |
Commercial loans secured by real estate | ​ | $ | 658,861 | ​ | $ | 569,840
Commercial and industrial | ​ |  | 172,258 | ​ |  | 159,073
Paycheck Protection Program - 1st Draw | ​ | ​ | 24 | ​ | ​ | 1,356
Paycheck Protection Program - 2nd Draw | ​ | ​ | 2,011 | ​ | ​ | 25,508
Political subdivisions | ​ |  | 83,725 | ​ |  | 81,301
Commercial construction and land | ​ |  | 76,194 | ​ |  | 60,579
Loans secured by farmland | ​ |  | 12,839 | ​ |  | 11,121
Multi-family (5 or more) residential | ​ |  | 59,315 | ​ |  | 50,089
Agricultural loans | ​ |  | 2,492 | ​ |  | 2,351
Other commercial loans | ​ |  | 14,636 | ​ |  | 17,153
Total commercial | ​ |  | 1,082,355 | ​ |  | 978,371
Residential mortgage: |  | ​ |  |  | ​ |
Residential mortgage loans - first liens | ​ | ​ | 492,854 | ​ | ​ | 483,629
Residential mortgage loans - junior liens | ​ |  | 24,208 | ​ |  | 23,314
Home equity lines of credit | ​ |  | 42,972 | ​ |  | 39,252
1-4 Family residential construction | ​ |  | 29,950 | ​ |  | 23,151
Total residential mortgage | ​ |  | 589,984 | ​ |  | 569,346
Consumer | ​ |  | 17,907 | ​ |  | 17,132
Total | ​ |  | 1,690,246 | ​ |  | 1,564,849
Less: allowance for loan losses | ​ |  | (16,170) | ​ |  | (13,537)
Loans, net | ​ | $ | 1,674,076 | ​ | $ | 1,551,312
​ In the table above, outstanding loan balances are presented net of deferred loan origination fees, net, of $4,221,000 at September 30, 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. 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 September 30, 2022, the recorded investment in 1st Draw PPP loans was $24,000, including contractual principal balances of $26,000, reduced by net deferred origination fees of $2,000. The recorded investment in 2nd Draw PPP loans was $2,011,000, including contractual principal balances of $2,093,000 reduced by net deferred origination fees of $82,000. Interest and fees on PPP loans which are included in taxable interest and fees on loans in the unaudited consolidated statements of income totaled $118,000 in the third quarter 2022 and $1,639,000 in the third quarter 2021, and $899,000 in the nine-month period ended September 30, 2022 and $4,886,000 in the nine-month period ended September 30, 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 and nine-month periods ended September 30, 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 | ​ | Nine Months Ended
​ | ​ | September 30, | ​ | September 30, | ​ | September 30, | ​ | September 30,
​ | ​ | 2022 | ​ | 2021 | ​ | 2022 | ​ | 2021
Market Rate Adjustment |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Adjustments to gross amortized cost of loans at beginning of period | ​ | $ | (866) | ​ | $ | (5) | ​ | $ | (637) | ​ | $ | 718
Accretion (amortization) recognized in interest income | ​ | ​ | 5 | ​ | ​ | (368) | ​ | ​ | (224) | ​ | ​ | (1,091)
Adjustments to gross amortized cost of loans at end of period | ​ | $ | (861) | ​ | $ | (373) | ​ | $ | (861) | ​ | $ | (373)
Credit Adjustment on Non-impaired Loans | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Adjustments to gross amortized cost of loans at beginning of period | ​ | $ | (2,403) | ​ | $ | (4,502) | ​ | $ | (3,335) | ​ | $ | (5,979)
Accretion recognized in interest income | ​ |  | 308 | ​ |  | 666 | ​ |  | 1,240 | ​ |  | 2,143
Adjustments to gross amortized cost of loans at end of period | ​ | $ | (2,095) | ​ | $ | (3,836) | ​ | $ | (2,095) | ​ | $ | (3,836)
​ A summary of PCI loans held at September 30, 2022 and December 31, 2021 is as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
(In Thousands) | ​ | September 30, | ​ | December 31,
​ |  | 2022 |  | 2021
Outstanding balance | ​ | $ | 5,564 | ​ | $ | 9,802
Carrying amount | ​ |  | 3,783 | ​ |  | 6,558
​ In the third quarter 2022, the Corporation received repayments on PCI loans in excess of previous carrying amounts, resulting in income of $173,000 as compared to $17,000 in the third quarter 2021. In the nine-month period ended September 30, 2022, the Corporation received repayments on PCI loans in excess of previous carrying amounts, resulting in income of $1,585,000 as compared to $35,000 in the nine-month period ended September 30, 2021. These amounts are included in interest and fees on taxable loans in the unaudited consolidated statements of income. 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 September 30, 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 and nine-month periods ended September 30, 2022 and 2021 were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Three Months Ended September 30, 2022 | ​ | June 30, 2022 |  |  | ​ |  |  | ​ |  |  | ​ |  | September 30, 2022
(In Thousands) |  | Balance |  | Charge-offs |  | Recoveries |  | Provision (Credit) |  | Balance
Allowance for Loan Losses: |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |
Commercial: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Commercial loans secured by real estate | ​ | $ | 4,982 | ​ | $ | (2,160) | ​ | $ | 0 | ​ | $ | 3,225 | ​ | $ | 6,047
Commercial and industrial | ​ |  | 2,792 | ​ |  | 0 | ​ |  | 0 | ​ |  | 31 | ​ |  | 2,823
Commercial construction and land | ​ |  | 515 | ​ |  | 0 | ​ |  | 0 | ​ |  | 169 | ​ |  | 684
Loans secured by farmland | ​ |  | 112 | ​ |  | 0 | ​ |  | 0 | ​ |  | 1 | ​ |  | 113
Multi-family (5 or more) residential | ​ |  | 339 | ​ |  | 0 | ​ |  | 0 | ​ |  | 88 | ​ |  | 427
Agricultural loans | ​ |  | 23 | ​ |  | 0 | ​ |  | 0 | ​ |  | (1) | ​ |  | 22
Other commercial loans | ​ |  | 131 | ​ |  | 0 | ​ |  | 0 | ​ |  | (9) | ​ |  | 122
Total commercial | ​ |  | 8,894 | ​ |  | (2,160) | ​ |  | 0 | ​ |  | 3,504 | ​ |  | 10,238
Residential mortgage: |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |
Residential mortgage loans - first liens | ​ | ​ | 3,689 | ​ | ​ | 0 | ​ | ​ | 1 | ​ | ​ | 229 | ​ | ​ | 3,919
Residential mortgage loans - junior liens | ​ |  | 180 | ​ |  | 0 | ​ |  | 0 | ​ |  | 14 | ​ |  | 194
Home equity lines of credit | ​ |  | 308 | ​ |  | 0 | ​ |  | 0 | ​ |  | 25 | ​ |  | 333
1-4 Family residential construction | ​ |  | 215 | ​ |  | 0 | ​ |  | 0 | ​ |  | 36 | ​ |  | 251
Total residential mortgage | ​ |  | 4,392 | ​ |  | 0 | ​ |  | 1 | ​ |  | 304 | ​ | ​ | 4,697
Consumer | ​ |  | 261 | ​ |  | (36) | ​ |  | 24 | ​ |  | (14) | ​ |  | 235
Unallocated | ​ |  | 1,000 | ​ |  | 0 | ​ |  | 0 | ​ |  | 0 | ​ |  | 1,000
Total Allowance for Loan Losses | ​ | $ | 14,547 | ​ | $ | (2,196) | ​ | $ | 25 | ​ | $ | 3,794 | ​ | $ | 16,170
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Three Months Ended September 30, 2021 | ​ | June 30, 2021 |  |  | ​ |  |  | ​ |  |  | ​ |  | September 30, 2021
(In Thousands) |  | Balance |  | Charge-offs |  | Recoveries |  | Provision (Credit) |  | Balance
Allowance for Loan Losses: |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |
Commercial: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Commercial loans secured by real estate | ​ | $ | 3,452 | ​ | $ | 0 | ​ | $ | 0 | ​ | $ | 368 | ​ | $ | 3,820
Commercial and industrial | ​ |  | 2,781 | ​ |  | (1,194) | ​ |  | 6 | ​ |  | 947 | ​ |  | 2,540
Commercial construction and land | ​ |  | 452 | ​ |  | 0 | ​ |  | 0 | ​ |  | 107 | ​ |  | 559
Loans secured by farmland | ​ |  | 113 | ​ |  | 0 | ​ |  | 0 | ​ |  | (1) | ​ |  | 112
Multi-family (5 or more) residential | ​ |  | 150 | ​ |  | 0 | ​ |  | 0 | ​ |  | 46 | ​ |  | 196
Agricultural loans | ​ |  | 25 | ​ |  | 0 | ​ |  | 0 | ​ |  | 8 | ​ |  | 33
Other commercial loans | ​ |  | 145 | ​ |  | 0 | ​ |  | 0 | ​ |  | 28 | ​ |  | 173
Total commercial | ​ |  | 7,118 | ​ |  | (1,194) | ​ |  | 6 | ​ |  | 1,503 | ​ |  | 7,433
Residential mortgage: |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |
Residential mortgage loans - first liens | ​ | ​ | 3,536 | ​ | ​ | 0 | ​ | ​ | 1 | ​ | ​ | 29 | ​ | ​ | 3,566
Residential mortgage loans - junior liens | ​ |  | 327 | ​ |  | 0 | ​ |  | 0 | ​ |  | (6) | ​ |  | 321
Home equity lines of credit | ​ |  | 294 | ​ |  | 0 | ​ |  | 0 | ​ |  | (11) | ​ |  | 283
1-4 Family residential construction | ​ |  | 198 | ​ |  | 0 | ​ |  | 0 | ​ |  | (9) | ​ |  | 189
Total residential mortgage | ​ |  | 4,355 | ​ |  | 0 | ​ |  | 1 | ​ |  | 3 | ​ |  | 4,359
Consumer | ​ |  | 231 | ​ |  | (26) | ​ |  | 8 | ​ |  | 24 | ​ |  | 237
Unallocated | ​ |  | 671 | ​ |  | 0 | ​ |  | 0 | ​ |  | 0 | ​ |  | 671
Total Allowance for Loan Losses | ​ | $ | 12,375 | ​ | $ | (1,220) | ​ | $ | 15 | ​ | $ | 1,530 | ​ | $ | 12,700
​ For the three months ended September 30, 2022, the provision for loan losses was $3,794,000, an increase in expense of $2,264,000 as compared to $1,530,000 for the three months ended September 30, 2021. The third quarter 2022 provision included net charge-offs of $2,171,000 and an increase of $1,623,000 in the collectively determined portion of the allowance. In the third quarter 2022, the Corporation recorded a partial charge-off of $2,160,000 on a commercial real estate secured loan with a principal balance of $6,920,000 at the time of charge-off. This is a participation loan to a borrower in the health care industry. The charge-off resulted from the borrower’s default due to deterioration in financial performance accompanied by a significant decrease in the appraised value of property at a recently closed facility that had been one of the primary sources of collateral on the loan. Realization of the recorded investment in the loan of $4,760,000 at September 30, 2022 is principally dependent upon the amount of proceeds from sales of the real estate and, if necessary, payments of any shortfall by the guarantors. ​ The third quarter 2021 provision included a net charge of $611,000 related to specific loans (net charge-offs of $1,205,000 offset by a net decrease in specific allowances on loans of $594,000), and an increase of $919,000 in the collectively determined portion of the allowance. In the third quarter 2021, the Corporation recorded a partial charge-off of $1,194,000 on a commercial loan with an outstanding balance of $3,496,000 at the time of the charge-off. At September 30, 2022, the recorded investment in this loan was $196,000. In addition, there is a PPP loan to this borrower with a balance of $727,000 at September 30, 2022 that is in the process of collection. At September 30, 2022, there was no specific allowance related to loans to this borrower. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | December 31, |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | September 30,
Nine Months Ended September 30, 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 | ​ | $ | (2,160) | ​ | $ | 0 | ​ | $ | 3,802 | ​ | $ | 6,047
Commercial and industrial | ​ |  | 2,723 | ​ |  | (150) | ​ |  | 0 | ​ |  | 250 | ​ |  | 2,823
Commercial construction and land | ​ |  | 637 | ​ |  | 0 | ​ |  | 0 | ​ |  | 47 | ​ |  | 684
Loans secured by farmland | ​ |  | 115 | ​ |  | 0 | ​ |  | 0 | ​ |  | (2) | ​ |  | 113
Multi-family (5 or more) residential | ​ |  | 215 | ​ |  | 0 | ​ |  | 0 | ​ |  | 212 | ​ |  | 427
Agricultural loans | ​ |  | 25 | ​ |  | 0 | ​ |  | 0 | ​ |  | (3) | ​ |  | 22
Other commercial loans | ​ |  | 173 | ​ |  | 0 | ​ |  | 0 | ​ |  | (51) | ​ |  | 122
Total commercial | ​ |  | 8,293 | ​ |  | (2,310) | ​ |  | 0 | ​ |  | 4,255 | ​ |  | 10,238
Residential mortgage: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Residential mortgage loans - first liens | ​ | ​ | 3,650 | ​ | ​ | 0 | ​ | ​ | 3 | ​ | ​ | 266 | ​ | ​ | 3,919
Residential mortgage loans - junior liens | ​ |  | 184 | ​ |  | 0 | ​ |  | 0 | ​ |  | 10 | ​ |  | 194
Home equity lines of credit | ​ |  | 302 | ​ |  | 0 | ​ |  | 15 | ​ |  | 16 | ​ |  | 333
1-4 Family residential construction | ​ |  | 202 | ​ |  | 0 | ​ |  | 0 | ​ |  | 49 | ​ |  | 251
Total residential mortgage | ​ |  | 4,338 | ​ |  | 0 | ​ |  | 18 | ​ |  | 341 | ​ |  | 4,697
Consumer | ​ |  | 235 | ​ |  | (107) | ​ |  | 39 | ​ |  | 68 | ​ |  | 235
Unallocated | ​ |  | 671 | ​ |  | 0 | ​ |  | 0 | ​ |  | 329 | ​ |  | 1,000
Total Allowance for Loan Losses | ​ | $ | 13,537 | ​ | $ | (2,417) | ​ | $ | 57 | ​ | $ | 4,993 | ​ | $ | 16,170
​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | December 31, |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | September 30,
Nine Months Ended September 30, 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 | ​ | $ | 767 | ​ | $ | 3,820
Commercial and industrial | ​ |  | 2,245 | ​ |  | (1,194) | ​ |  | 20 | ​ |  | 1,469 | ​ |  | 2,540
Commercial construction and land | ​ |  | 454 | ​ |  | 0 | ​ |  | 0 | ​ |  | 105 | ​ |  | 559
Loans secured by farmland | ​ |  | 120 | ​ |  | 0 | ​ |  | 0 | ​ |  | (8) | ​ |  | 112
Multi-family (5 or more) residential | ​ |  | 236 | ​ |  | 0 | ​ |  | 0 | ​ |  | (40) | ​ |  | 196
Agricultural loans | ​ |  | 34 | ​ |  | 0 | ​ |  | 0 | ​ |  | (1) | ​ |  | 33
Other commercial loans | ​ |  | 168 | ​ |  | 0 | ​ |  | 0 | ​ |  | 5 | ​ |  | 173
Total commercial | ​ |  | 6,308 | ​ |  | (1,194) | ​ |  | 22 | ​ |  | 2,297 | ​ |  | 7,433
Residential mortgage: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Residential mortgage loans - first liens | ​ | ​ | 3,524 | ​ | ​ | (11) | ​ | ​ | 3 | ​ | ​ | 50 | ​ | ​ | 3,566
Residential mortgage loans - junior liens | ​ |  | 349 | ​ |  | 0 | ​ |  | 0 | ​ |  | (28) | ​ |  | 321
Home equity lines of credit | ​ |  | 281 | ​ |  | 0 | ​ |  | 2 | ​ |  | 0 | ​ |  | 283
1-4 Family residential construction | ​ |  | 99 | ​ |  | 0 | ​ |  | 0 | ​ |  | 90 | ​ |  | 189
Total residential mortgage | ​ |  | 4,253 | ​ |  | (11) | ​ |  | 5 | ​ |  | 112 | ​ |  | 4,359
Consumer | ​ |  | 239 | ​ |  | (73) | ​ |  | 33 | ​ |  | 38 | ​ |  | 237
Unallocated | ​ |  | 585 | ​ |  | 0 | ​ |  | 0 | ​ |  | 86 | ​ |  | 671
Total Allowance for Loan Losses | ​ | $ | 11,385 | ​ | $ | (1,278) | ​ | $ | 60 | ​ | $ | 2,533 | ​ | $ | 12,700
​ For the nine months ended September 30, 2022, the provision for loan losses was $4,993,000, an increase in expense of $2,460,000 as compared to $2,533,000 recorded for the first nine months ended September 30, 2021. The provision for the first nine months of 2022 includes $2,047,000 related to specific loans (net decrease in specific allowances on loans of $313,000 and net charge-offs of $2,360,000), an increase of $2,617,000 in the collectively determined portion of the allowance and a $329,000 increase in the unallocated portion. In comparison, the provision for loan losses in the first nine months of 2021 includes $1,176,000 related to specific loans (net charge-offs of $1,218,000 and a decrease in specific allowances on loans of $42,000), an increase of $1,271,000 in the collectively determined portion of the allowance and an $86,000 increase in the unallocated portion. 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 September 30, 2022 and December 31, 2021: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
September 30, 2022 |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | Purchased |  | ​ | ​
(In Thousands) | ​ | ​ | ​ | ​ | Special | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Credit | ​ | ​ | ​
​ | ​ | Pass | ​ | Mention | ​ | Substandard | ​ | Doubtful | ​ | Impaired | ​ | Total
Commercial: | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Commercial loans secured by real estate | ​ | $ | 637,390 | ​ | $ | 5,938 | ​ | $ | 11,789 | ​ | $ | 0 | ​ | $ | 3,744 | ​ | $ | 658,861
Commercial and Industrial | ​ |  | 159,735 | ​ |  | 9,085 | ​ |  | 3,399 | ​ |  | 0 | ​ |  | 39 | ​ |  | 172,258
Paycheck Protection Program - 1st Draw | ​ | ​ | 24 | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 24
Paycheck Protection Program - 2nd Draw | ​ | ​ | 2,011 | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 2,011
Political subdivisions | ​ |  | 83,725 | ​ |  | 0 | ​ |  | 0 | ​ |  | 0 | ​ |  | 0 | ​ |  | 83,725
Commercial construction and land | ​ |  | 75,433 | ​ |  | 714 | ​ |  | 47 | ​ |  | 0 | ​ |  | 0 | ​ |  | 76,194
Loans secured by farmland | ​ |  | 10,903 | ​ |  | 618 | ​ |  | 1,318 | ​ |  | 0 | ​ |  | 0 | ​ |  | 12,839
Multi-family (5 or more) residential | ​ |  | 58,458 | ​ |  | 0 | ​ |  | 857 | ​ |  | 0 | ​ |  | 0 | ​ |  | 59,315
Agricultural loans | ​ |  | 1,875 | ​ |  | 29 | ​ |  | 588 | ​ |  | 0 | ​ |  | 0 | ​ |  | 2,492
Other commercial loans | ​ |  | 14,636 | ​ |  | 0 | ​ |  | 0 | ​ |  | 0 | ​ |  | 0 | ​ |  | 14,636
Total commercial | ​ |  | 1,044,190 | ​ |  | 16,384 | ​ |  | 17,998 | ​ |  | 0 | ​ |  | 3,783 | ​ |  | 1,082,355
Residential Mortgage: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Residential mortgage loans - first liens | ​ | ​ | 478,768 | ​ | ​ | 7,398 | ​ | ​ | 6,688 | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 492,854
Residential mortgage loans - junior liens | ​ |  | 23,739 | ​ |  | 164 | ​ |  | 305 | ​ |  | 0 | ​ |  | 0 | ​ |  | 24,208
Home equity lines of credit | ​ |  | 42,424 | ​ |  | 59 | ​ |  | 489 | ​ |  | 0 | ​ |  | 0 | ​ |  | 42,972
1-4 Family residential construction | ​ |  | 29,950 | ​ |  | 0 | ​ |  | 0 | ​ |  | 0 | ​ |  | 0 | ​ |  | 29,950
Total residential mortgage | ​ |  | 574,881 | ​ |  | 7,621 | ​ |  | 7,482 | ​ |  | 0 | ​ |  | 0 | ​ |  | 589,984
Consumer | ​ |  | 17,844 | ​ |  | 0 | ​ |  | 63 | ​ |  | 0 | ​ |  | 0 | ​ |  | 17,907
Totals | ​ | $ | 1,636,915 | ​ | $ | 24,005 | ​ | $ | 25,543 | ​ | $ | 0 | ​ | $ | 3,783 | ​ | $ | 1,690,246
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
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 September 30, 2022 and December 31, 2021. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
September 30, 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 | ​ | $ | 12,080 | ​ | $ | 646,781 | ​ | $ | 658,861 | ​ | $ | 427 | ​ | $ | 5,620 | ​ | $ | 6,047
Commercial and industrial | ​ |  | 369 | ​ |  | 171,889 | ​ |  | 172,258 | ​ |  | 0 | ​ |  | 2,823 | ​ |  | 2,823
Paycheck Protection Program - 1st Draw | ​ |  | 0 | ​ |  | 24 | ​ |  | 24 | ​ |  | 0 | ​ |  | 0 | ​ |  | 0
Paycheck Protection Program - 2nd Draw | ​ | ​ | 0 | ​ | ​ | 2,011 | ​ | ​ | 2,011 | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 0
Political subdivisions | ​ |  | 0 | ​ |  | 83,725 | ​ |  | 83,725 | ​ |  | 0 | ​ |  | 0 | ​ |  | 0
Commercial construction and land | ​ |  | 47 | ​ |  | 76,147 | ​ |  | 76,194 | ​ |  | 0 | ​ |  | 684 | ​ |  | 684
Loans secured by farmland | ​ |  | 78 | ​ |  | 12,761 | ​ |  | 12,839 | ​ |  | 0 | ​ |  | 113 | ​ |  | 113
Multi-family (5 or more) residential | ​ |  | 0 | ​ |  | 59,315 | ​ |  | 59,315 | ​ |  | 0 | ​ |  | 427 | ​ |  | 427
Agricultural loans | ​ |  | 60 | ​ |  | 2,432 | ​ |  | 2,492 | ​ |  | 0 | ​ |  | 22 | ​ |  | 22
Other commercial loans | ​ |  | 0 | ​ |  | 14,636 | ​ |  | 14,636 | ​ |  | 0 | ​ |  | 122 | ​ |  | 122
Total commercial | ​ |  | 12,634 | ​ |  | 1,069,721 | ​ |  | 1,082,355 | ​ |  | 427 | ​ |  | 9,811 | ​ |  | 10,238
Residential mortgage: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Residential mortgage loans - first liens | ​ | ​ | 576 | ​ | ​ | 492,278 | ​ | ​ | 492,854 | ​ | ​ | 0 | ​ | ​ | 3,919 | ​ | ​ | 3,919
Residential mortgage loans - junior liens | ​ |  | 31 | ​ |  | 24,177 | ​ |  | 24,208 | ​ |  | 0 | ​ |  | 194 | ​ |  | 194
Home equity lines of credit | ​ |  | 68 | ​ |  | 42,904 | ​ |  | 42,972 | ​ |  | 0 | ​ |  | 333 | ​ |  | 333
1-4 Family residential construction | ​ |  | 0 | ​ |  | 29,950 | ​ |  | 29,950 | ​ |  | 0 | ​ |  | 251 | ​ |  | 251
Total residential mortgage | ​ |  | 675 | ​ |  | 589,309 | ​ |  | 589,984 | ​ |  | 0 | ​ |  | 4,697 | ​ |  | 4,697
Consumer | ​ |  | 0 | ​ |  | 17,907 | ​ |  | 17,907 | ​ |  | 0 | ​ |  | 235 | ​ |  | 235
Unallocated | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | 1,000
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total | ​ | $ | 13,309 | ​ | $ | 1,676,937 | ​ | $ | 1,690,246 | ​ | $ | 427 | ​ | $ | 14,743 | ​ | $ | 16,170
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
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 September 30, 2022 and December 31, 2021 is provided in the table immediately below. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(In Thousands) | ​ | September 30, 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 | ​ | $ | 12,680 | ​ | $ | 8,684 | ​ | $ | 0 | ​ | $ | 6,600 | ​ | $ | 4,458 | ​ | $ | 0
Commercial and industrial | ​ |  | 2,135 | ​ |  | 369 | ​ |  | 0 | ​ |  | 5,213 | ​ |  | 2,431 | ​ |  | 0
Residential mortgage loans - first liens | ​ | ​ | 601 | ​ | ​ | 576 | ​ | ​ | 0 | ​ | ​ | 656 | ​ | ​ | 630 | ​ | ​ | 0
Residential mortgage loans - junior liens | ​ |  | 71 | ​ |  | 31 | ​ |  | 0 | ​ |  | 124 | ​ |  | 14 | ​ |  | 0
Home equity lines of credit | ​ |  | 68 | ​ |  | 68 | ​ |  | 0 | ​ | ​ | 0 | ​ | ​ | 0 | ​ |  | 0
Loans secured by farmland | ​ |  | 78 | ​ |  | 78 | ​ |  | 0 | ​ |  | 83 | ​ |  | 83 | ​ |  | 0
Agricultural loans | ​ | ​ | 60 | ​ | ​ | 60 | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 0
Construction and other land loans | ​ | ​ | 47 | ​ | ​ | 47 | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 0
Multi-family (5 or more) residential | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 2,734 | ​ | ​ | 1,578 | ​ | ​ | 0
Total with no related allowance recorded | ​ |  | 15,740 | ​ |  | 9,913 | ​ |  | 0 | ​ |  | 15,410 | ​ |  | 9,194 | ​ |  | 0
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
With a related allowance recorded: | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Commercial loans secured by real estate | ​ | ​ | 3,396 | ​ | ​ | 3,396 | ​ | ​ | 427 | ​ | ​ | 6,468 | ​ | ​ | 6,468 | ​ | ​ | 668
Commercial and industrial | ​ |  | 0 | ​ |  | 0 | ​ |  | 0 | ​ |  | 72 | ​ |  | 72 | ​ |  | 72
Total with a related allowance recorded | ​ |  | 3,396 | ​ |  | 3,396 | ​ |  | 427 | ​ |  | 6,540 | ​ |  | 6,540 | ​ |  | 740
Total | ​ | $ | 19,136 | ​ | $ | 13,309 | ​ | $ | 427 | ​ | $ | 21,950 | ​ | $ | 15,734 | ​ | $ | 740
​ The average balance of 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 | ​ | Nine Months Ended | ​ | Three Months Ended | ​ | Nine Months Ended
​ | ​ | September 30, | ​ | September 30, | ​ | September 30, | ​ | September 30,
​ |  | 2022 | ​ | 2021 | ​ | 2022 |  | 2021 | ​ | 2022 | ​ | 2021 | ​ | 2022 |  | 2021
Commercial: | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ |  | ​
Commercial loans secured by real estate | ​ | $ | 9,710 | ​ | $ | 11,252 | ​ | $ | 9,804 | ​ | $ | 11,811 | ​ | $ | 143 | ​ | $ | 172 | ​ | $ | 483 | ​ | $ | 401
Commercial and industrial | ​ | ​ | 371 | ​ | ​ | 3,844 | ​ |  | 839 | ​ |  | 2,566 | ​ | ​ | 4 | ​ | ​ | 4 | ​ |  | 207 | ​ |  | 25
Commercial construction and land | ​ | ​ | 47 | ​ | ​ | 48 | ​ |  | 47 | ​ |  | 48 | ​ | ​ | 0 | ​ | ​ | 2 | ​ |  | 1 | ​ |  | 2
Loans secured by farmland | ​ | ​ | 79 | ​ | ​ | 84 | ​ |  | 81 | ​ |  | 84 | ​ | ​ | 0 | ​ | ​ | 0 | ​ |  | 0 | ​ |  | 1
Multi-family (5 or more) residential | ​ | ​ | 0 | ​ | ​ | 1,578 | ​ | ​ | 263 | ​ | ​ | 1,584 | ​ | ​ | 0 | ​ | ​ | 31 | ​ | ​ | 1,156 | ​ | ​ | 122
Agricultural loans | ​ | ​ | 59 | ​ | ​ | 66 | ​ |  | 61 | ​ |  | 67 | ​ | ​ | 0 | ​ | ​ | 0 | ​ |  | 2 | ​ |  | 3
Total commercial | ​ | ​ | 10,266 | ​ | ​ | 16,872 | ​ |  | 11,095 | ​ |  | 16,160 | ​ | ​ | 147 | ​ | ​ | 209 | ​ |  | 1,849 | ​ |  | 554
Residential mortgage: |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  |  | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  |  | ​ |
Residential mortgage loans - first lien | ​ | ​ | 612 | ​ | ​ | 1,322 | ​ | ​ | 587 | ​ | ​ | 1,830 | ​ | ​ | 5 | ​ | ​ | 11 | ​ | ​ | 17 | ​ | ​ | 68
Residential mortgage loans - junior lien | ​ | ​ | 31 | ​ | ​ | 386 | ​ |  | 33 | ​ |  | 417 | ​ | ​ | 0 | ​ | ​ | 1 | ​ |  | 6 | ​ |  | 10
Home equity lines of credit | ​ | ​ | 68 | ​ | ​ | 0 | ​ |  | 34 | ​ |  | 0 | ​ | ​ | 1 | ​ | ​ | 0 | ​ |  | 3 | ​ |  | 0
Total residential mortgage | ​ | ​ | 711 | ​ | ​ | 1,708 | ​ |  | 654 | ​ |  | 2,247 | ​ | ​ | 6 | ​ | ​ | 12 | ​ |  | 26 | ​ |  | 78
Total | ​ | $ | 10,977 | ​ | $ | 18,580 | ​ | $ | 11,749 | ​ | $ | 18,407 | ​ | $ | 153 | ​ | $ | 221 | ​ | $ | 1,875 | ​ | $ | 632
​ 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) | ​ | September 30, 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 | ​ | $ | 1,898 | ​ | $ | 12,079 | ​ | $ | 738 | ​ | $ | 10,885
Commercial and industrial | ​ |  | 248 | ​ |  | 304 | ​ |  | 30 | ​ |  | 2,299
Commercial construction and land | ​ |  | 25 | ​ |  | 47 | ​ |  | 0 | ​ |  | 48
Loans secured by farmland | ​ |  | 0 | ​ |  | 78 | ​ |  | 28 | ​ |  | 83
Multi-family (5 or more) residential | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 1,578
Agricultural loans | ​ | ​ | 59 | ​ | ​ | 0 | ​ | ​ | 65 | ​ | ​ | 0
Total commercial | ​ |  | 2,230 | ​ |  | 12,508 | ​ |  | 861 | ​ |  | 14,893
Residential mortgage: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Residential mortgage loans - first liens | ​ | ​ | 985 | ​ | ​ | 4,271 | ​ | ​ | 1,144 | ​ | ​ | 4,005
Residential mortgage loans - junior liens | ​ |  | 55 | ​ |  | 0 | ​ |  | 69 | ​ |  | 3
Home equity lines of credit | ​ |  | 186 | ​ |  | 132 | ​ |  | 102 | ​ |  | 82
Total residential mortgage | ​ |  | 1,226 | ​ |  | 4,403 | ​ |  | 1,315 | ​ |  | 4,090
Consumer | ​ |  | 43 | ​ |  | 48 | ​ |  | 43 | ​ |  | 16
Totals | ​ | $ | 3,499 | ​ | $ | 16,959 | ​ | $ | 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 $3,783,000 at September 30, 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 September 30, 2022 and December 31, 2021. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(In Thousands) | ​ | As of September 30, 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 | ​ | $ | 655,851 | ​ | $ | 0 | ​ | $ | 3,010 | ​ | $ | 658,861 | ​ | $ | 563,658 | ​ | $ | 762 | ​ | $ | 5,420 | ​ | $ | 569,840
Commercial and industrial | ​ |  | 171,819 | ​ |  | 129 | ​ |  | 310 | ​ |  | 172,258 | ​ |  | 158,188 | ​ |  | 72 | ​ |  | 813 | ​ |  | 159,073
Paycheck Protection Program - 1st Draw | ​ | ​ | 24 | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 24 | ​ | ​ | 1,339 | ​ | ​ | 17 | ​ | ​ | 0 | ​ | ​ | 1,356
Paycheck Protection Program - 2nd Draw | ​ | ​ | 1,062 | ​ | ​ | 949 | ​ | ​ | 0 | ​ | ​ | 2,011 | ​ | ​ | 25,508 | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 25,508
Political subdivisions | ​ |  | 83,725 | ​ |  | 0 | ​ |  | 0 | ​ |  | 83,725 | ​ |  | 81,301 | ​ |  | 0 | ​ |  | 0 | ​ |  | 81,301
Commercial construction and land | ​ |  | 75,925 | ​ |  | 197 | ​ |  | 72 | ​ |  | 76,194 | ​ |  | 60,509 | ​ |  | 70 | ​ |  | 0 | ​ |  | 60,579
Loans secured by farmland | ​ |  | 12,675 | ​ |  | 86 | ​ |  | 78 | ​ |  | 12,839 | ​ |  | 11,010 | ​ |  | 0 | ​ |  | 111 | ​ |  | 11,121
Multi-family (5 or more) residential | ​ |  | 59,315 | ​ |  | 0 | ​ |  | 0 | ​ |  | 59,315 | ​ |  | 48,532 | ​ |  | 0 | ​ |  | 1,557 | ​ |  | 50,089
Agricultural loans | ​ |  | 2,433 | ​ |  | 0 | ​ |  | 59 | ​ |  | 2,492 | ​ |  | 2,279 | ​ |  | 7 | ​ |  | 65 | ​ |  | 2,351
Other commercial loans | ​ |  | 14,636 | ​ |  | 0 | ​ |  | 0 | ​ |  | 14,636 | ​ |  | 17,153 | ​ |  | 0 | ​ |  | 0 | ​ |  | 17,153
Total commercial | ​ |  | 1,077,465 | ​ |  | 1,361 | ​ |  | 3,529 | ​ |  | 1,082,355 | ​ |  | 969,477 | ​ |  | 928 | ​ |  | 7,966 | ​ |  | 978,371
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Residential mortgage: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Residential mortgage loans - first liens | ​ | ​ | 487,629 | ​ | ​ | 1,934 | ​ | ​ | 3,291 | ​ | ​ | 492,854 | ​ | ​ | 475,637 | ​ | ​ | 5,038 | ​ | ​ | 2,954 | ​ | ​ | 483,629
Residential mortgage loans - junior liens | ​ |  | 24,106 | ​ |  | 47 | ​ |  | 55 | ​ |  | 24,208 | ​ |  | 23,229 | ​ |  | 16 | ​ |  | 69 | ​ |  | 23,314
Home equity lines of credit | ​ |  | 42,465 | ​ |  | 227 | ​ |  | 280 | ​ |  | 42,972 | ​ |  | 38,830 | ​ |  | 279 | ​ |  | 143 | ​ |  | 39,252
1-4 Family residential construction | ​ |  | 29,950 | ​ |  | 0 | ​ |  | 0 | ​ |  | 29,950 | ​ |  | 23,151 | ​ |  | 0 | ​ |  | 0 | ​ |  | 23,151
Total residential mortgage | ​ |  | 584,150 | ​ |  | 2,208 | ​ |  | 3,626 | ​ |  | 589,984 | ​ |  | 560,847 | ​ |  | 5,333 | ​ |  | 3,166 | ​ |  | 569,346
Consumer | ​ |  | 17,674 | ​ |  | 142 | ​ |  | 91 | ​ |  | 17,907 | ​ |  | 17,001 | ​ |  | 72 | ​ |  | 59 | ​ |  | 17,132
Totals | ​ | $ | 1,679,289 | ​ | $ | 3,711 | ​ | $ | 7,246 | ​ | $ | 1,690,246 | ​ | $ | 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 September 30, 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
September 30, 2022 Nonaccrual Totals | ​ | $ | 12,542 | ​ | $ | 670 | ​ | $ | 3,747 | ​ | $ | 16,959
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 September 30, 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
September 30, 2022 Totals | ​ | $ | 211 | ​ | $ | 20 | ​ | $ | 92 | ​ | $ | 3,868 | ​ | $ | 4,191
December 31, 2021 Totals | ​ | $ | 248 | ​ | $ | 40 | ​ | $ | 65 | ​ | $ | 5,452 | ​ | $ | 5,805
​ At September 30, 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 and nine-month periods ended September 30, 2022 and 2021 are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(Balances in Thousands) | ​ | Three Months Ended | ​ | Three Months Ended
​ | ​ | September 30, 2022 | ​ | September 30, 2021
​ | ​ | ​ | ​ | Post- | ​ | ​ | ​ | Post-
​ | ​ | Number | ​ | Modification | ​ | Number | ​ | Modification
​ | ​ | of | ​ | Recorded | ​ | of | ​ | Recorded
​ | ​ | Loans | ​ | Investment | ​ | Loans | ​ | Investment
Home equity lines of credit, | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Reduced monthly payments for an eighteen-month period |  | 0 |  | $ | 0 |  | 1 | ​ | $ | 70
Total |  | 0 |  | $ | 0 |  | 1 |  | $ | 70
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Nine Months Ended | ​ | Nine Months Ended
(Balances in Thousands) | ​ | September 30, 2022 | ​ | September 30, 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
Reduced monthly payments for a fifteen-month period | ​ | 0 | ​ | ​ | 0 | ​ | 1 | ​ | ​ | 116
Home equity lines of credit: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Reduced monthly payments and extended maturity date | ​ | 0 | ​ | ​ | 0 | ​ | 1 | ​ | ​ | 24
Reduced monthly payments for an eighteen-month period | ​ | 0 | ​ | ​ | 0 | ​ | 1 | ​ | ​ | 70
Total |  | 0 | ​ | $ | 0 |  | 4 | ​ | $ | 222
​ In the third quarters of 2022 and 2021, there were no defaults on loans for which TDRs were entered into within the previous 12 months. In the nine-month periods ended September 30, 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) | ​ | Nine Months Ended | ​ | Nine Months Ended
​ | ​ | September 30, 2022 | ​ | September 30, 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) |  | September 30, |  | December 31,
​ | ​ | 2022 | ​ | 2021
Foreclosed residential real estate | ​ | $ | 179 | ​ | $ | 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) |  | September 30, |  | December 31,
​ | ​ | 2022 | ​ | 2021
Residential real estate in process of foreclosure | ​ | $ | 1,306 | ​ | $ | 1,260
​

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