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LOANS | 12 Months Ended
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Dec. 31, 2022
Receivables [Abstract] |
LOANS | LOANS Major classifications of loans at December 31 were as follows (in thousands):
| 2022 |  | 2021
Commercial and industrial | $ | 120,327 |  |  | 101,598 |
Commercial, secured by real estate | 936,255 |  |  | 887,679 |
Residential real estate | 306,128 |  |  | 335,106 |
Consumer | 28,414 |  |  | 34,291 |
Agricultural | 10,073 |  |  | 10,649 |
Other loans, including deposit overdrafts | 81 |  |  | 122 |
| 1,401,278 |  |  | 1,369,445 |
Less allowance for loan losses | 5,646 |  |  | 5,506 |
Loans-net | $ | 1,395,632 |  |  | 1,363,939 |
Loans in the above table are shown net of deferred origination fees and costs. Deferred origination fees, net of related costs, were $980,000 and $961,000 at December 31, 2022 and 2021, respectively. Non-accrual, past-due, and accruing restructured loans at December 31 were as follows (dollars in thousands):
| 2022 |  | 2021
Non-accrual loans: |  |  |
Commercial, secured by real estate | $ | 319 |  |  | 1,182 |
Residential real estate | 72 |  |  | 299 |
Total non-accrual loans | 391 |  |  | 1,481 |
Past-due 90 days or more and still accruing | 39 |  |  | 56 |
Total non-accrual and past-due 90 days or more and still accruing | 430 |  |  | 1,537 |
Accruing restructured loans | 1,376 |  |  | 2,622 |
Total | $ | 1,806 |  |  | 4,159 |
Ratio of total non-accrual loans to total loans | 0.03 | % |  | 0.11 | %
Ratio of total non-accrual loans, past-due 90 days or more and still accruing, and accruing restructured loans to total loans | 0.13 | % |  | 0.30 | %
Interest income that would have been recorded during 2022 and 2021 if loans on non-accrual status at December 31, 2022 and 2021 had been current and in accordance with their original terms was approximately $32,000 and $31,000, respectively. The allowance for loan losses and recorded investment in loans for the years ended December 31 were as follows (in thousands):
| Commercial & Industrial |  | Commercial, Secured by Real Estate |  | Residential Real Estate |  | Consumer |  | Agricultural |  | Other |  | Total
2022 |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |
Balance, beginning of year | $ | 1,095 |  |  | 3,607 |  |  | 665 |  |  | 105 |  |  | 30 |  |  | 4 |  |  | 5,506 |
Provision for (recovery of) loan losses | 205 |  |  | 69 |  |  | (81) |  |  | (12) |  |  | (8) |  |  | 77 |  |  | 250 |
Losses charged off | — |  |  | (67) |  |  | (5) |  |  | (37) |  |  | — |  |  | (157) |  |  | (266) |
Recoveries | — |  |  | — |  |  | 45 |  |  | 30 |  |  | — |  |  | 81 |  |  | 156 |
Balance, end of year | $ | 1,300 |  |  | 3,609 |  |  | 624 |  |  | 86 |  |  | 22 |  |  | 5 |  |  | 5,646 |
Individually evaluated for impairment | $ | 4 |  |  | 11 |  |  | 6 |  |  | — |  |  | — |  |  | — |  |  | 21 |
Collectively evaluated for impairment | 1,296 |  |  | 3,598 |  |  | 618 |  |  | 86 |  |  | 22 |  |  | 5 |  |  | 5,625 |
Acquired credit impaired loans | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Balance, end of year | $ | 1,300 |  |  | 3,609 |  |  | 624 |  |  | 86 |  |  | 22 |  |  | 5 |  |  | 5,646 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment | $ | 114 |  |  | 963 |  |  | 482 |  |  | — |  |  | — |  |  | — |  |  | 1,559 |
Collectively evaluated for impairment | 119,799 |  |  | 934,568 |  |  | 304,770 |  |  | 28,414 |  |  | 10,073 |  |  | 81 |  |  | 1,397,705 |
Acquired credit impaired loans | 414 |  |  | 724 |  |  | 876 |  |  | — |  |  | — |  |  | — |  |  | 2,014 |
Balance, end of year | $ | 120,327 |  |  | 936,255 |  |  | 306,128 |  |  | 28,414 |  |  | 10,073 |  |  | 81 |  |  | 1,401,278 |
Ratio of net charge-offs to average loans | — | % |  | 0.01 | % |  | (0.01) | % |  | 0.02 | % |  | — | % |  | 100.00 | % |  | 0.01 | %
2021 |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |
Balance, beginning of year | $ | 816 |  |  | 3,903 |  |  | 837 |  |  | 153 |  |  | 28 |  |  | (9) |  |  | 5,728 |
Provision for (recovery of) loan losses | 279 |  |  | (375) |  |  | (190) |  |  | (45) |  |  | 2 |  |  | 60 |  |  | (269) |
Losses charged off | — |  |  | (112) |  |  | (28) |  |  | (9) |  |  | — |  |  | (105) |  |  | (254) |
Recoveries | — |  |  | 191 |  |  | 46 |  |  | 6 |  |  | — |  |  | 58 |  |  | 301 |
Balance, end of year | $ | 1,095 |  |  | 3,607 |  |  | 665 |  |  | 105 |  |  | 30 |  |  | 4 |  |  | 5,506 |
Individually evaluated for impairment | $ | 5 |  |  | 11 |  |  | 9 |  |  | — |  |  | — |  |  | — |  |  | 25 |
Collectively evaluated for impairment | 1,090 |  |  | 3,596 |  |  | 656 |  |  | 105 |  |  | 30 |  |  | 4 |  |  | 5,481 |
Acquired credit impaired loans | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Balance, end of year | $ | 1,095 |  |  | 3,607 |  |  | 665 |  |  | 105 |  |  | 30 |  |  | 4 |  |  | 5,506 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment | $ | 155 |  |  | 2,945 |  |  | 559 |  |  | — |  |  | — |  |  | — |  |  | 3,659 |
Collectively evaluated for impairment | 101,355 |  |  | 883,122 |  |  | 333,384 |  |  | 34,291 |  |  | 10,649 |  |  | 122 |  |  | 1,362,923 |
Acquired credit impaired loans | 88 |  |  | 1,612 |  |  | 1,163 |  |  | — |  |  | — |  |  | — |  |  | 2,863 |
Balance, end of year | $ | 101,598 |  |  | 887,679 |  |  | 335,106 |  |  | 34,291 |  |  | 10,649 |  |  | 122 |  |  | 1,369,445 |
Ratio of net charge-offs to average loans | — | % |  | (0.01) | % |  | (0.01) | % |  | 0.01 | % |  | — | % |  | 16.24 | % |  | — | %
| Commercial & Industrial |  | Commercial, Secured by Real Estate |  | Residential Real Estate |  | Consumer |  | Agricultural |  | Other |  | Total
2020 |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |
Balance, beginning of year | $ | 456 |  |  | 2,924 |  |  | 528 |  |  | 99 |  |  | 34 |  |  | 4 |  |  | 4,045 |
Provision for (recovery of) loan losses | 342 |  |  | 1,332 |  |  | 239 |  |  | 62 |  |  | (6) |  |  | 45 |  |  | 2,014 |
Losses charged off | (13) |  |  | (353) |  |  | (5) |  |  | (30) |  |  | — |  |  | (140) |  |  | (541) |
Recoveries | 31 |  |  | — |  |  | 75 |  |  | 22 |  |  | — |  |  | 82 |  |  | 210 |
Balance, end of year | $ | 816 |  |  | 3,903 |  |  | 837 |  |  | 153 |  |  | 28 |  |  | (9) |  |  | 5,728 |
Individually evaluated for impairment | $ | 8 |  |  | 17 |  |  | 27 |  |  | — |  |  | — |  |  | — |  |  | 52 |
Collectively evaluated for impairment | 808 |  |  | 3,886 |  |  | 810 |  |  | 153 |  |  | 28 |  |  | (9) |  |  | 5,676 |
Acquired credit impaired loans | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Balance, end of year | $ | 816 |  |  | 3,903 |  |  | 837 |  |  | 153 |  |  | 28 |  |  | (9) |  |  | 5,728 |
Ratio of net charge-offs to average loans | (0.02) | % |  | 0.04 | % |  | (0.02) | % |  | 0.02 | % |  | — | % |  | 10.83 | % |  | 0.03 | %
The risk characteristics of LCNB's material loan portfolio segments were as follows: Commercial & Industrial Loans. LCNB’s commercial and industrial loan portfolio consists of loans for various purposes, including, for example, loans to fund working capital requirements (such as inventory and receivables financing) and purchases of machinery and equipment. LCNB offers a variety of commercial and industrial loan arrangements, including term loans, balloon loans, and lines of credit. Commercial & industrial loans can have a fixed or variable rate, with maturities ranging from one to ten years. Commercial & industrial loans are offered to businesses and professionals for short and medium terms on both a collateralized and uncollateralized basis. Commercial & industrial loans typically are underwritten on the basis of the borrower’s ability to make repayment from the cash flow of the business. Collateral, when obtained, may include liens on furniture, fixtures, equipment, inventory, receivables, or other assets. As a result, such loans involve complexities, variables, and risks that require thorough underwriting and more robust servicing than other types of loans. This category includes PPP loans that were authorized under the CARES Act and updated by the Economic Aid Act. The PPP was implemented by the SBA with support from the Department of the Treasury and provided small businesses that were negatively impacted by the COVID-19 pandemic with g overnment guaranteed and potentially forgivable loans that could be used to pay up to eight or twenty-four weeks, depending on the date of the loan, of payroll costs including benefits. Funds could also be used to pay interest on mortgages, rent, utilities, covered operations expenditures, covered property damage costs, covered supplier costs, and covered worker protection expenditures. LCNB originated 316 PPP loans with original balances totaling $45.5 million during 2020 and originated an additional 358 loans with original balances totaling $38.3 million during the first half of 2021. Outstanding PPP loans at December 31, 2022 and 2021 totaled $40,000 and $6,935,000, respectively, and unrecognized fees at those dates totaled $4,000 and $272,000, respectively. Commercial, Secured by Real Estate Loans. Commercial real estate loans include loans secured by a variety of commercial, retail and office buildings, religious facilities, hotels, multifamily (more than four-family) residential properties, construction and land development loans, and other land loans. Mortgage loans secured by owner-occupied agricultural property are included in this category. Commercial real estate loan products generally amortize over five to twenty-five years and are payable in monthly principal and interest installments. Some have balloon payments due within one to ten years after the origination date. The majority have adjustable interest rates with adjustment periods ranging from one to ten years, some of which are subject to established “floor” interest rates. Commercial real estate loans are underwritten based on the ability of the property, in the case of income producing property, or the borrower’s business to generate sufficient cash flow to amortize the debt. Secondary emphasis is placed upon global debt service, collateral value, financial strength and liquidity of any and all guarantors, and other factors. Commercial real estate loans are generally originated with a 75% to 85% maximum loan to appraised value ratio, depending upon borrower occupancy. Residential Real Estate Loans. Residential real estate loans include loans secured by first or second mortgage liens on one to four-family residential properties. Home equity lines of credit are included in this category. First and second mortgage loans are generally amortized over five to thirty years with monthly principal and interest payments. Home equity lines of credit generally have a five year or less draw period with interest only payments followed by a repayment period with monthly payments based on the amount outstanding. LCNB offers both fixed and adjustable rate mortgage loans. Adjustable rate loans are available with adjustment periods ranging between one to fifteen years and adjust according to an established index plus a margin, subject to certain floor and ceiling rates. Home equity lines of credit have a variable rate based on the Wall Street Journal prime rate plus a margin. Residential real estate loans are underwritten primarily based on the borrower’s ability to repay, prior credit history, and the value of the collateral. LCNB generally requires private mortgage insurance for first mortgage loans that have a loan to appraised value ratio of greater than 80% or may require other credit enhancements for second lien mortgage loans. Consumer Loans. LCNB’s portfolio of consumer loans generally includes secured and unsecured loans to individuals for household, family and other personal expenditures. Secured loans include loans to fund the purchase of automobiles, recreational vehicles, boats, and similar acquisitions. Consumer loans made by LCNB generally have fixed rates and terms ranging up to 72 months, depending upon the nature of the collateral, size of the loan, and other relevant factors. Consumer loans generally have higher interest rates, but pose additional risks of collectability and loss when compared to certain other types of loans. Collateral, if present, is generally subject to damage, wear, and depreciation. The borrower’s ability to repay is of primary importance in the underwriting of consumer loans. Agricultural Loans. LCNB’s portfolio of agricultural loans includes loans for financing agricultural production or for financing the purchase of equipment used in the production of agricultural products. LCNB’s agricultural loans are generally secured by farm machinery, livestock, crops, vehicles, or other agricultural-related collateral. LCNB uses a risk-rating system to quantify loan quality. A loan is assigned to a risk category based on relevant information about the ability of the borrower to service the debt including, but not limited to, current financial information, historical payment experience, credit documentation, public information, and current economic trends. The categories used are: •Pass – loans categorized in this category are higher quality loans that do not fit any of the other categories described below. •Other Assets Especially Mentioned (OAEM) - loans in this category are currently protected but are potentially weak. These loans constitute a risk but not to the point of justifying a classification of substandard. The credit risk may be relatively minor yet constitute an undue risk in light of the circumstances surrounding a specific asset. •Substandard – loans in this category are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the possibility that LCNB will sustain some loss if the deficiencies are not corrected. •Doubtful – loans classified in this category have all the weaknesses inherent in loans classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. An analysis of the Company’s loan portfolio by credit quality indicators at December 31 is as follows (in thousands):
| Pass |  | OAEM |  | Substandard |  | Doubtful |  | Total
2022 |  |  |  |  |  |  |  |  |
Commercial & industrial | $ | 114,573 |  |  | 3,744 |  |  | 2,010 |  |  | — |  |  | 120,327 |
Commercial, secured by real estate | 913,375 |  |  | 15,344 |  |  | 7,536 |  |  | — |  |  | 936,255 |
Residential real estate | 304,513 |  |  | — |  |  | 1,615 |  |  | — |  |  | 306,128 |
Consumer | 28,411 |  |  | — |  |  | 3 |  |  | — |  |  | 28,414 |
Agricultural | 10,073 |  |  | — |  |  | — |  |  | — |  |  | 10,073 |
Other | 81 |  |  | — |  |  | — |  |  | — |  |  | 81 |
Total | $ | 1,371,026 |  |  | 19,088 |  |  | 11,164 |  |  | — |  |  | 1,401,278 |
2021 |  |  |  |  |  |  |  |  |
Commercial & industrial | $ | 98,694 |  |  | 2,757 |  |  | 147 |  |  | — |  |  | 101,598 |
Commercial, secured by real estate | 851,709 |  |  | 22,336 |  |  | 13,634 |  |  | — |  |  | 887,679 |
Residential real estate | 332,962 |  |  | — |  |  | 2,144 |  |  | — |  |  | 335,106 |
Consumer | 34,281 |  |  | — |  |  | 10 |  |  | — |  |  | 34,291 |
Agricultural | 10,649 |  |  | — |  |  | — |  |  | — |  |  | 10,649 |
Other | 122 |  |  | — |  |  | — |  |  | — |  |  | 122 |
Total | $ | 1,328,417 |  |  | 25,093 |  |  | 15,935 |  |  | — |  |  | 1,369,445 |
LCNB generally performs a classification of assets review, including the regulatory classification of assets, on an ongoing basis. The results of the classification of assets review are validated annually by an independent third party loan review firm. In the event of a difference in rating or classification between those assigned by the internal and external resources, the Company will utilize the more critical or conservative rating or classification. Loans with regulatory classifications are presented monthly to the Board of Directors. LCNB evaluates the loan risk grading system definitions and allowance for loan loss methodology on an ongoing basis. No significant changes were made to either during the past year. A loan portfolio aging analysis at December 31 is as follows (in thousands):
| 30-59 Days Past Due |  | 60-89 Days Past Due |  | Greater Than 90 Days |  | Total Past Due |  | Current |  | Total Loans Receivable |  | Total Loans Greater Than 90 Days and Accruing
2022 |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial & industrial | $ | — |  |  | — |  |  | — |  |  | — |  |  | 120,327 |  |  | 120,327 |  |  | — |
Commercial, secured by real estate | — |  |  | — |  |  | — |  |  | — |  |  | 936,255 |  |  | 936,255 |  |  | — |
Residential real estate | 81 |  |  | — |  |  | 79 |  |  | 160 |  |  | 305,968 |  |  | 306,128 |  |  | 39 |
Consumer | 117 |  |  | 3 |  |  | — |  |  | 120 |  |  | 28,294 |  |  | 28,414 |  |  | — |
Agricultural | — |  |  | — |  |  | — |  |  | — |  |  | 10,073 |  |  | 10,073 |  |  | — |
Other | 81 |  |  | — |  |  | — |  |  | 81 |  |  | — |  |  | 81 |  |  | — |
Total | $ | 279 |  |  | 3 |  |  | 79 |  |  | 361 |  |  | 1,400,917 |  |  | 1,401,278 |  |  | 39 |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial & industrial | $ | — |  |  | — |  |  | — |  |  | — |  |  | 101,598 |  |  | 101,598 |  |  | — |
Commercial, secured by real estate | 181 |  |  | — |  |  | 784 |  |  | 965 |  |  | 886,714 |  |  | 887,679 |  |  | — |
Residential real estate | 1,130 |  |  | 1 |  |  | 109 |  |  | 1,240 |  |  | 333,866 |  |  | 335,106 |  |  | 51 |
Consumer | 22 |  |  | 5 |  |  | 5 |  |  | 32 |  |  | 34,259 |  |  | 34,291 |  |  | 5 |
Agricultural | — |  |  | — |  |  | — |  |  | — |  |  | 10,649 |  |  | 10,649 |  |  | — |
Other | 122 |  |  | — |  |  | — |  |  | 122 |  |  | — |  |  | 122 |  |  | — |
Total | $ | 1,455 |  |  | 6 |  |  | 898 |  |  | 2,359 |  |  | 1,367,086 |  |  | 1,369,445 |  |  | 56 |
Impaired loans, including acquired credit impaired loans, for the years ended December 31 were as follows (in thousands):
| Recorded Investment |  | Unpaid Principal Balance |  | Related Allowance |  | Average Recorded Investment |  | Interest Income Recognized
2022 |  |  |  |  |  |  |  |  |
With no related allowance recorded: |  |  |  |  |  |  |  |  |
Commercial & industrial | $ | 414 |  |  | 523 |  |  | — |  |  | 311 |  |  | 145 |
Commercial, secured by real estate | 1,042 |  |  | 1,255 |  |  | — |  |  | 2,220 |  |  | 357 |
Residential real estate | 1,173 |  |  | 1,379 |  |  | — |  |  | 1,306 |  |  | 234 |
Consumer | — |  |  | — |  |  | — |  |  | — |  |  | — |
Agricultural | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | 2,629 |  |  | 3,157 |  |  | — |  |  | 3,837 |  |  | 736 |
With an allowance recorded: |  |  |  |  |  |  |  |  |
Commercial & industrial | $ | 114 |  |  | 119 |  |  | 4 |  |  | 135 |  |  | 8 |
Commercial, secured by real estate | 645 |  |  | 645 |  |  | 11 |  |  | 663 |  |  | 43 |
Residential real estate | 185 |  |  | 185 |  |  | 6 |  |  | 194 |  |  | 11 |
Consumer | — |  |  | — |  |  | — |  |  | — |  |  | — |
Agricultural | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | 944 |  |  | 949 |  |  | 21 |  |  | 992 |  |  | 62 |
Total: |  |  |  |  |  |  |  |  |
Commercial & industrial | $ | 528 |  |  | 642 |  |  | 4 |  |  | 446 |  |  | 153 |
Commercial, secured by real estate | 1,687 |  |  | 1,900 |  |  | 11 |  |  | 2,883 |  |  | 400 |
Residential real estate | 1,358 |  |  | 1,564 |  |  | 6 |  |  | 1,500 |  |  | 245 |
Consumer | — |  |  | — |  |  | — |  |  | — |  |  | — |
Agricultural | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | 3,573 |  |  | 4,106 |  |  | 21 |  |  | 4,829 |  |  | 798 |
| Recorded Investment |  | Unpaid Principal Balance |  | Related Allowance |  | Average Recorded Investment |  | Interest Income Recognized
2021 |  |  |  |  |  |  |  |  |
With no related allowance recorded: |  |  |  |  |  |  |  |  |
Commercial & industrial | $ | 88 |  |  | 316 |  |  | — |  |  | 236 |  |  | 83 |
Commercial, secured by real estate | 3,897 |  |  | 4,736 |  |  | — |  |  | 5,978 |  |  | 411 |
Residential real estate | 1,501 |  |  | 1,857 |  |  | — |  |  | 2,553 |  |  | 227 |
Consumer | — |  |  | — |  |  | — |  |  | 1 |  |  | — |
Agricultural | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other | — |  |  | — |  |  | — |  |  | 144 |  |  | 127 |
Total | $ | 5,486 |  |  | 6,909 |  |  | — |  |  | 8,912 |  |  | 848 |
With an allowance recorded: |  |  |  |  |  |  |  |  |
Commercial & industrial | $ | 155 |  |  | 160 |  |  | 5 |  |  | 175 |  |  | 10 |
Commercial, secured by real estate | 660 |  |  | 660 |  |  | 11 |  |  | 674 |  |  | 36 |
Residential real estate | 221 |  |  | 221 |  |  | 9 |  |  | 230 |  |  | 13 |
Consumer | — |  |  | — |  |  | — |  |  | — |  |  | — |
Agricultural | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | 1,036 |  |  | 1,041 |  |  | 25 |  |  | 1,079 |  |  | 59 |
Total: |  |  |  |  |  |  |  |  |
Commercial & industrial | $ | 243 |  |  | 476 |  |  | 5 |  |  | 411 |  |  | 93 |
Commercial, secured by real estate | 4,557 |  |  | 5,396 |  |  | 11 |  |  | 6,652 |  |  | 447 |
Residential real estate | 1,722 |  |  | 2,078 |  |  | 9 |  |  | 2,783 |  |  | 240 |
Consumer | — |  |  | — |  |  | — |  |  | 1 |  |  | — |
Agricultural | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other | — |  |  | — |  |  | — |  |  | 144 |  |  | 127 |
Total | $ | 6,522 |  |  | 7,950 |  |  | 25 |  |  | 9,991 |  |  | 907 |
|  |  |  |  |  |  | Average Recorded Investment |  | Interest Income Recognized
2020 |  |  |  |  |  |  |  |  |
With no related allowance recorded: |  |  |  |  |  |  |  |  |
Commercial & industrial |  |  |  |  |  |  | $ | 1,044 |  |  | 335 |
Commercial, secured by real estate |  |  |  |  |  |  | 7,070 |  |  | 731 |
Residential real estate |  |  |  |  |  |  | 3,290 |  |  | 316 |
Consumer |  |  |  |  |  |  | 10 |  |  | 1 |
Agricultural |  |  |  |  |  |  | — |  |  | — |
Other |  |  |  |  |  |  | 234 |  |  | 36 |
Total |  |  |  |  |  |  | $ | 11,648 |  |  | 1,419 |
With an allowance recorded: |  |  |  |  |  |  |  |  |
Commercial & industrial |  |  |  |  |  |  | $ | 212 |  |  | 12 |
Commercial, secured by real estate |  |  |  |  |  |  | 1,517 |  |  | 18 |
Residential real estate |  |  |  |  |  |  | 404 |  |  | 18 |
Consumer |  |  |  |  |  |  | 3 |  |  | — |
Agricultural |  |  |  |  |  |  | — |  |  | — |
Other |  |  |  |  |  |  | — |  |  | — |
Total |  |  |  |  |  |  | $ | 2,136 |  |  | 48 |
Total: |  |  |  |  |  |  |  |  |
Commercial & industrial |  |  |  |  |  |  | $ | 1,256 |  |  | 347 |
Commercial, secured by real estate |  |  |  |  |  |  | 8,587 |  |  | 749 |
Residential real estate |  |  |  |  |  |  | 3,694 |  |  | 334 |
Consumer |  |  |  |  |  |  | 13 |  |  | 1 |
Agricultural |  |  |  |  |  |  | — |  |  | — |
Other |  |  |  |  |  |  | 234 |  |  | 36 |
Total |  |  |  |  |  |  | $ | 13,784 |  |  | 1,467 |
Of the interest income recognized on impaired loans during 2022, 2021, and 2020, approximately $5,000, $37,000, and $34,000, respectively, were recognized on a cash basis. The Company continued to accrue interest on certain loans classified as impaired during 2022, 2021, and 2020 because they were restructured or considered well secured and in the process of collection. From time to time, the terms of certain loans are modified as troubled debt restructurings ("TDRs") where concessions are granted to borrowers experiencing financial difficulties. The modification of the terms of such loans may have included one, or a combination, of the following: a temporary or permanent reduction of the stated interest rate of the loan, an increase in the stated rate of interest lower than the current market rate for new debt with similar risk, forgiveness of principal, an extension of the maturity date, or a change in the payment terms. Loan modifications that were classified as troubled debt restructurings during the years ended December 31 were as follows (dollars in thousands):
| 2022 |  | 2021 |  |  |  | 2020 |  |
| Number of Loans |  | Pre-Modification Recorded Balance |  | Post-Modification Recorded Balance |  | Number of Loans |  | Pre-Modification Recorded Balance |  | Post-Modification Recorded Balance |  | Number of Loans |  | Pre-Modification Recorded Balance |  | Post-Modification Recorded Balance
Commercial and industrial | — |  |  | $ | — |  |  | $ | — |  |  | — |  |  | $ | — |  |  | $ | — |  |  | 1 |  |  | $ | 5 |  |  | $ | 4 |
Commercial, secured by real estate | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 1,525 |  |  | 1,525 |
Residential real estate | — |  |  | — |  |  | — |  |  | 3 |  |  | 97 |  |  | 101 |  |  | 1 |  |  | 14 |  |  | 14 |
Consumer | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Totals | — |  |  | $ | — |  |  | $ | — |  |  | 3 |  |  | $ | 97 |  |  | $ | 101 |  |  | 3 |  |  | $ | 1,544 |  |  | $ | 1,543 |
Post-modification balances of newly restructured troubled debt by type of modification for the years ended December 31 were as follows (in thousands):
| Term Modification |  | Rate Modification |  | Interest Only |  | Principal Forgiveness |  | Combination |  | Total Modifications
2022 |  |  |  |  |  |  |  |  |  |  |
Commercial & industrial | $ | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial, secured by real estate | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Residential real estate | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Consumer | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
2021 |  |  |  |  |  |  |  |  |  |  |
Commercial & industrial | $ | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial, secured by real estate | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Residential real estate | 32 |  |  | — |  |  | — |  |  | — |  |  | 69 |  |  | 101 |
Consumer | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | 32 |  |  | — |  |  | — |  |  | — |  |  | 69 |  |  | 101 |
2020 |  |  |  |  |  |  |  |  |  |  |
Commercial & industrial | $ | — |  |  | — |  |  | — |  |  | — |  |  | 4 |  |  | 4 |
Commercial, secured by real estate | — |  |  | — |  |  | — |  |  | — |  |  | 1,525 |  |  | 1,525 |
Residential real estate | — |  |  | — |  |  | — |  |  | — |  |  | 14 |  |  | 14 |
Consumer | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | — |  |  | — |  |  | — |  |  | — |  |  | 1,543 |  |  | 1,543 |
LCNB is not committed to lend additional funds to borrowers whose loan terms were modified in a troubled debt restructuring. There were no troubled debt restructurings that subsequently defaulted within twelve months of the restructuring date for the years ended December 31, 2022, 2021, or 2020. All troubled debt restructurings are considered impaired loans. The allowance for loan loss on such restructured loans is based on the present value of future expected cash flows. Information concerning the post-modification balances of loans that were modified during the year ended December 31 and that were determined to be troubled debt restructurings follows (in thousands):
| 2022 |  | 2021
Impaired loans without a valuation allowance at the end of the period | — |  |  | 101 |
Impaired loans with a valuation allowance at the end of the period | — |  |  | — |
Mortgage loans sold to and serviced for the Federal Home Loan Mortgage Corporation and other investors are not included in the accompanying Consolidated Balance Sheets. The unpaid principal balances of those loans at December 31, 2022 and 2021 were approximately $148,412,000 and $149,382,000, respectively.

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