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Loans | 6 Months Ended
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Jun. 30, 2022
Receivables [Abstract] |
Loans | Note 6: Loans Major classifications of loans at the indicated dates are as follows:
|  | June 30, |  |  | December 31, |
(In thousands) |  | 2022 |  |  | 2021 |
Residential mortgage loans: |  |  |  |  |  |
1-4 family first-lien residential mortgages |  | $ | 240,997 |  |  | $ | 240,434 |
Construction |  |  | 16,241 |  |  |  | 6,329 |
Loans held-for-sale |  |  | - |  |  |  | 513 |
Total residential mortgage loans |  |  | 257,238 |  |  |  | 247,276 |
Commercial loans: |  |  |  |  |  |
Real estate |  |  | 320,439 |  |  |  | 288,450 |
Lines of credit |  |  | 76,610 |  |  |  | 61,884 |
Other commercial and industrial |  |  | 70,205 |  |  |  | 69,135 |
Paycheck Protection Program loans |  |  | 4,877 |  |  |  | 19,338 |
Tax exempt loans |  |  | 5,390 |  |  |  | 5,811 |
Total commercial loans |  |  | 477,521 |  |  |  | 444,618 |
Consumer loans: |  |  |  |  |  |
Home equity and junior liens |  |  | 33,267 |  |  |  | 31,737 |
Other consumer |  |  | 99,326 |  |  |  | 110,108 |
Total consumer loans |  |  | 132,593 |  |  |  | 141,845 |
Total loans |  |  | 867,352 |  |  |  | 833,739 |
Net deferred loan fees |  |  | (1,063 | ) |  |  | (1,280 | )
Less allowance for loan losses |  |  | 13,078 |  |  |  | 12,935 |
Loans receivable, net |  | $ | 853,211 |  |  | $ | 819,524 |
Although the Bank may sometimes purchase or fund loan participation interests outside of its primary market areas, the Bank generally originates residential mortgage, commercial, and consumer loans largely to customers throughout Oswego and Onondaga counties. Although the Bank has a diversified loan portfolio, a substantial portion of its borrowers’ abilities to honor their loan contracts is dependent upon the counties’ employment and economic conditions. From time to time, the Bank acquires diversified pools of loans, originated by unrelated third parties, as part of the Company’s overall balance sheet management strategies. These acquisitions took place with nine separate transactions that occurred between 2017 and 2019 with an additional six transactions occurring in 2021. The following tables detail the purchased loan pool positions held by the Bank at June 30, 2022 and December 31, 2021 (the month/year of the earliest acquisition date is depicted in parentheses):
(In thousands, except number of loans) |  | June 30, 2022 |
|  | Original Balance |  |  | Current Balance |  |  | Unamortized Premium/ (Discount) |  |  | Number of Loans |  |  | Maturity Range |  | Cumulative net charge-offs |
Automobile loans (1/2017) |  | $ | 50,400 |  |  | $ | 6,100 |  |  | $ | 198 |  |  |  | 684 |  |  | 0-5 years |  | $ | 239 |
Commercial and industrial loans (6/2019) |  |  | 6,800 |  |  |  | 3,700 |  |  |  | - |  |  |  | 26 |  |  | 3-7 years |  |  | - |
Home equity lines of credit (8/2019) |  |  | 21,900 |  |  |  | 7,100 |  |  |  | 215 |  |  |  | 163 |  |  | 1-27 years |  |  | - |
Unsecured consumer loan pool 2 (11/2019) |  |  | 26,600 |  |  |  | 3,200 |  |  |  | 19 |  |  |  | 1,073 |  |  | 0-3 years |  |  | - |
Residential real estate loans (12/2019) |  |  | 4,300 |  |  |  | 4,000 |  |  |  | 248 |  |  |  | 50 |  |  | 16-23 years |  |  | - |
Unsecured consumer loan pool 1 (12/2019) |  |  | 5,400 |  |  |  | 2,400 |  |  |  | - |  |  |  | 59 |  |  | 2-4 years |  |  | - |
Unsecured consumer installment loans pool 3 (12/2019) |  |  | 10,300 |  |  |  | 1,400 |  |  |  | 53 |  |  |  | 787 |  |  | 0-6 years |  |  | 46 |
Secured consumer installment loans pool 4 (12/2020) |  |  | 14,500 |  |  |  | 11,900 |  |  |  | (1,624 | ) |  |  | 539 |  |  | 23-24 years |  |  | - |
Unsecured consumer loans pool 5 (1/2021) |  |  | 24,400 |  |  |  | 18,100 |  |  |  | (530 | ) |  |  | 707 |  |  | 8-23 years |  |  | - |
Commercial Line of Credit 1 (3/2021) |  |  | 11,600 |  |  |  | 10,700 |  |  |  | 20 |  |  |  | 1 |  |  | 0-1 year |  |  | - |
Secured consumer installment loans (11/2021) |  |  | 21,300 |  |  |  | 20,500 |  |  |  | (3,403 | ) |  |  | 872 |  |  | 18-25 years |  |  | - |
Commercial Line of Credit 2 (11/2021) |  |  | 10,500 |  |  |  | 9,300 |  |  |  | 29 |  |  |  | 1 |  |  | 0-1 year |  |  | - |
Unsecured consumer loans pool 6 (11/2021) |  |  | 22,200 |  |  |  | 21,200 |  |  |  | (2,606 | ) |  |  | 559 |  |  | 9-24 years |  |  | - |
Total |  | $ | 230,200 |  |  | $ | 119,600 |  |  | $ | (7,381 | ) |  |  | 5,521 |  |  |  |  | $ | 285 |
(In thousands, except number of loans) |  | December 31, 2021 |
|  | Original Balance |  |  | Current Balance |  |  | Unamortized Premium/ (Discount) |  |  | Number of Loans |  |  | Maturity Range |  | Cumulative net charge-offs |
Automobile loans (1/2017) |  | $ | 50,400 |  |  | $ | 8,800 |  |  | $ | 301 |  |  |  | 855 |  |  | 0-5 years |  | $ | 239 |
Commercial and industrial loans (6/2019) |  |  | 6,800 |  |  |  | 3,900 |  |  |  | - |  |  |  | 33 |  |  | 4-8 years |  |  | - |
Home equity lines of credit (8/2019) |  |  | 21,900 |  |  |  | 8,400 |  |  |  | 243 |  |  |  | 187 |  |  | 2-28 years |  |  | - |
Unsecured consumer loan pool 2 (11/2019) |  |  | 26,600 |  |  |  | 6,300 |  |  |  | 30 |  |  |  | 1,438 |  |  | 1-3 years |  |  | - |
Residential real estate loans (12/2019) |  |  | 4,300 |  |  |  | 4,100 |  |  |  | 257 |  |  |  | 51 |  |  | 17-23 years |  |  | - |
Unsecured consumer loan pool 1 (12/2019) |  |  | 5,400 |  |  |  | 2,600 |  |  |  | - |  |  |  | 66 |  |  | 3-5 years |  |  | - |
Unsecured consumer installment loans pool 3 (12/2019) |  |  | 10,300 |  |  |  | 2,200 |  |  |  | 74 |  |  |  | 1,356 |  |  | 0-6 years |  |  | 30 |
Secured consumer installment loans pool 4 (12/2020) |  |  | 14,500 |  |  |  | 12,600 |  |  |  | (1,776 | ) |  |  | 563 |  |  | 23-24 years |  |  | - |
Unsecured consumer loans pool 5 (1/2021) |  |  | 24,400 |  |  |  | 19,700 |  |  |  | (583 | ) |  |  | 756 |  |  | 8-23 years |  |  | - |
Commercial Line of Credit 1 (3/2021) |  |  | 11,600 |  |  |  | 7,100 |  |  |  | 26 |  |  |  | 1 |  |  | 0-1 year |  |  | - |
Secured consumer installment loans (11/2021) |  |  | 21,300 |  |  |  | 21,400 |  |  |  | (3,642 | ) |  |  | 900 |  |  | 19-25 years |  |  | - |
Commercial Line of Credit 2 (11/2021) |  |  | 10,500 |  |  |  | 9,300 |  |  |  | 35 |  |  |  | 1 |  |  | 0-1 year |  |  | - |
Unsecured consumer loans pool 6 (11/2021) |  |  | 22,200 |  |  |  | 22,100 |  |  |  | (2,785 | ) |  |  | 564 |  |  | 9-24 years |  |  | - |
Total |  | $ | 230,200 |  |  | $ | 128,500 |  |  | $ | (7,820 | ) |  |  | 6,771 |  |  |  |  | $ | 269 |
As of June 30, 2022 and December 31, 2021, residential mortgage loans with a carrying value of $117.2 million and $123.2 million, respectively, have been pledged by the Company to the Federal Home Loan Bank of New York (“FHLBNY”) under a blanket collateral agreement to secure the Company’s line of credit and term borrowings. Loan Origination / Risk Management The Company’s lending policies and procedures are presented in Note 5 to the audited consolidated financial statements included in the 2021 Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 25, 2022 and have not changed. As part of the execution of the Company’s overall balance sheet management strategies, the Bank will acquire participating interests in loans originated by unrelated third parties on an occasional basis. The purchase of participations in loans that are originated by third parties only occurs after the completion of thorough pre-acquisition due diligence. Loans in which the Company acquires a participating interest are determined to meet, in all material respects, the Company’s internal underwriting policies, including credit and collateral suitability thresholds, prior to acquisition. In addition, the financial condition of the originating financial institutions, which are generally retained as the ongoing loan servicing provider for participations acquired by the Bank, are analyzed prior to the acquisition of the participating interests and monitored on a regular basis thereafter for the life of those interests. To develop and document a systematic methodology for determining the allowance for loan losses, the Company has divided the loan portfolio into three portfolio segments, each with different risk characteristics but with similar methodologies for assessing risk. Each portfolio segment is broken down into loan classes where appropriate. Loan classes contain unique measurement attributes, risk characteristics, and methods for monitoring and assessing risk that are necessary to develop the allowance for loan losses. Unique characteristics such as borrower type, loan type, collateral type, and risk characteristics define each class. The following table illustrates the portfolio segments and classes for the Company’s loan portfolio:
Portfolio Segment | Class
Residential Mortgage Loans | 1-4 family first-lien residential mortgages
| Construction
Commercial Loans | Real estate
| Lines of credit
| Other commercial and industrial
| Tax exempt loans
Consumer Loans | Home equity and junior liens
| Other consumer
The following tables present the classes of the loan portfolio, not including net deferred loan costs, summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company's internal risk rating system as of the dates indicated:
|  | As of June 30, 2022 |
|  |  |  |  | Special |  |  |  |  |  |  |  |  |  |
(In thousands) |  | Pass |  |  | Mention |  |  | Substandard |  |  | Doubtful |  |  | Total |
Residential mortgage loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family first-lien residential mortgages |  | $ | 238,956 |  |  | $ | 406 |  |  | $ | 971 |  |  | $ | 664 |  |  | $ | 240,997 |
Construction |  |  | 16,241 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 16,241 |
Total residential mortgage loans |  |  | 255,197 |  |  |  | 406 |  |  |  | 971 |  |  |  | 664 |  |  |  | 257,238 |
Commercial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate |  |  | 299,460 |  |  |  | 9,646 |  |  |  | 10,828 |  |  |  | 505 |  |  |  | 320,439 |
Lines of credit |  |  | 69,076 |  |  |  | 4,244 |  |  |  | 3,246 |  |  |  | 44 |  |  |  | 76,610 |
Other commercial and industrial |  |  | 58,315 |  |  |  | 4,364 |  |  |  | 7,379 |  |  |  | 147 |  |  |  | 70,205 |
Paycheck Protection Program loans |  |  | 4,877 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 4,877 |
Tax exempt loans |  |  | 5,390 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 5,390 |
Total commercial loans |  |  | 437,118 |  |  |  | 18,254 |  |  |  | 21,453 |  |  |  | 696 |  |  |  | 477,521 |
Consumer loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity and junior liens |  |  | 32,241 |  |  |  | 172 |  |  |  | 630 |  |  |  | 224 |  |  |  | 33,267 |
Other consumer |  |  | 99,297 |  |  |  | 14 |  |  |  | 15 |  |  |  | - |  |  |  | 99,326 |
Total consumer loans |  |  | 131,538 |  |  |  | 186 |  |  |  | 645 |  |  |  | 224 |  |  |  | 132,593 |
Total loans |  | $ | 823,853 |  |  | $ | 18,846 |  |  | $ | 23,069 |  |  | $ | 1,584 |  |  | $ | 867,352 |
|  | As of December 31, 2021 |
|  |  |  |  | Special |  |  |  |  |  |  |  |  |  |
(In thousands) |  | Pass |  |  | Mention |  |  | Substandard |  |  | Doubtful |  |  | Total |
Residential mortgage loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family first-lien residential mortgages |  | $ | 238,823 |  |  | $ | 269 |  |  | $ | 811 |  |  | $ | 531 |  |  | $ | 240,434 |
Construction |  |  | 6,329 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 6,329 |
Loans held-for-sale |  |  | 513 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 513 |
Total residential mortgage loans |  |  | 245,665 |  |  |  | 269 |  |  |  | 811 |  |  |  | 531 |  |  |  | 247,276 |
Commercial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate |  |  | 267,388 |  |  |  | 9,879 |  |  |  | 10,604 |  |  |  | 579 |  |  |  | 288,450 |
Lines of credit |  |  | 54,408 |  |  |  | 4,036 |  |  |  | 3,387 |  |  |  | 53 |  |  |  | 61,884 |
Other commercial and industrial |  |  | 56,719 |  |  |  | 3,907 |  |  |  | 8,321 |  |  |  | 188 |  |  |  | 69,135 |
Paycheck Protection Program loans |  |  | 19,338 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 19,338 |
Tax exempt loans |  |  | 5,811 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 5,811 |
Total commercial loans |  |  | 403,664 |  |  |  | 17,822 |  |  |  | 22,312 |  |  |  | 820 |  |  |  | 444,618 |
Consumer loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity and junior liens |  |  | 30,740 |  |  |  | 133 |  |  |  | 606 |  |  |  | 258 |  |  |  | 31,737 |
Other consumer |  |  | 109,979 |  |  |  | 44 |  |  |  | 77 |  |  |  | 8 |  |  |  | 110,108 |
Total consumer loans |  |  | 140,719 |  |  |  | 177 |  |  |  | 683 |  |  |  | 266 |  |  |  | 141,845 |
Total loans |  | $ | 790,048 |  |  | $ | 18,268 |  |  | $ | 23,806 |  |  | $ | 1,617 |  |  | $ | 833,739 |
Management has reviewed its loan portfolio and determined that, to the best of its knowledge, no material exposure exists to sub-prime or other high-risk residential mortgages. The Company is not in the practice of originating these types of loans. Nonaccrual and Past Due Loans Loans are placed on nonaccrual when the contractual payment of principal and interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan may be currently performing. Loans are considered past due if the required principal and interest payments have not been received within thirty days of the payment due date. An age analysis of past due loans, not including net deferred loan costs, segregated by portfolio segment and class of loans, as of June 30, 2022 and December 31, 2021, are detailed in the following tables:
|  | As of June 30, 2022 |
|  | 30-59 Days |  |  | 60-89 Days |  |  | 90 Days |  |  | Total |  |  |  |  |  | Total Loans |
(In thousands) |  | Past Due |  |  | Past Due |  |  | and Over |  |  | Past Due |  |  | Current |  |  | Receivable |
Residential mortgage loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family first-lien residential mortgages |  | $ | 168 |  |  | $ | 352 |  |  | $ | 1,462 |  |  | $ | 1,982 |  |  | $ | 239,015 |  |  | $ | 240,997 |
Construction |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 16,241 |  |  |  | 16,241 |
Loans held-for-sale |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total residential mortgage loans |  |  | 168 |  |  |  | 352 |  |  |  | 1,462 |  |  |  | 1,982 |  |  |  | 255,256 |  |  |  | 257,238 |
Commercial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate |  |  | 1,090 |  |  |  | 258 |  |  |  | 4,444 |  |  |  | 5,792 |  |  |  | 314,647 |  |  |  | 320,439 |
Lines of credit |  |  | 1,127 |  |  |  | 8 |  |  |  | 1,750 |  |  |  | 2,885 |  |  |  | 73,725 |  |  |  | 76,610 |
Other commercial and industrial |  |  | 615 |  |  |  | 649 |  |  |  | 2,073 |  |  |  | 3,337 |  |  |  | 66,868 |  |  |  | 70,205 |
Paycheck Protection Program loans |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 4,877 |  |  |  | 4,877 |
Tax exempt loans |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 5,390 |  |  |  | 5,390 |
Total commercial loans |  |  | 2,832 |  |  |  | 915 |  |  |  | 8,267 |  |  |  | 12,014 |  |  |  | 465,507 |  |  |  | 477,521 |
Consumer loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity and junior liens |  |  | 69 |  |  |  | 94 |  |  |  | 379 |  |  |  | 542 |  |  |  | 32,725 |  |  |  | 33,267 |
Other consumer |  |  | 383 |  |  |  | 233 |  |  |  | 1,228 |  |  |  | 1,844 |  |  |  | 97,482 |  |  |  | 99,326 |
Total consumer loans |  |  | 452 |  |  |  | 327 |  |  |  | 1,607 |  |  |  | 2,386 |  |  |  | 130,207 |  |  |  | 132,593 |
Total loans |  | $ | 3,452 |  |  | $ | 1,594 |  |  | $ | 11,336 |  |  | $ | 16,382 |  |  | $ | 850,970 |  |  | $ | 867,352 |
|  | As of December 31, 2021 |
|  | 30-59 Days |  |  | 60-89 Days |  |  | 90 Days |  |  | Total |  |  |  |  |  | Total Loans |
(In thousands) |  | Past Due |  |  | Past Due |  |  | and Over |  |  | Past Due |  |  | Current |  |  | Receivable |
Residential mortgage loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family first-lien residential mortgages |  | $ | 960 |  |  | $ | 416 |  |  | $ | 891 |  |  | $ | 2,268 |  |  | $ | 238,166 |  |  | $ | 240,434 |
Construction |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 6,329 |  |  |  | 6,329 |
Loans held-for-sale |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 513 |  |  |  | 513 |
Total residential mortgage loans |  |  | 960 |  |  |  | 416 |  |  |  | 891 |  |  |  | 2,268 |  |  |  | 245,008 |  |  |  | 247,276 |
Commercial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate |  |  | 1,735 |  |  |  | 1,029 |  |  |  | 4,379 |  |  |  | 7,143 |  |  |  | 281,307 |  |  |  | 288,450 |
Lines of credit |  |  | 156 |  |  |  | 1,180 |  |  |  | 576 |  |  |  | 1,913 |  |  |  | 59,971 |  |  |  | 61,884 |
Other commercial and industrial |  |  | 1,799 |  |  |  | 1,686 |  |  |  | 1,056 |  |  |  | 4,541 |  |  |  | 64,594 |  |  |  | 69,135 |
Paycheck Protection Program loans |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 19,338 |  |  |  | 19,338 |
Tax exempt loans |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 5,811 |  |  |  | 5,811 |
Total commercial loans |  |  | 3,691 |  |  |  | 3,895 |  |  |  | 6,011 |  |  |  | 13,597 |  |  |  | 471,091 |  |  |  | 444,618 |
Consumer loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity and junior liens |  |  | 17 |  |  |  | 49 |  |  |  | 251 |  |  |  | 317 |  |  |  | 31,420 |  |  |  | 31,737 |
Other consumer |  |  | 571 |  |  |  | 257 |  |  |  | 852 |  |  |  | 1,680 |  |  |  | 108,428 |  |  |  | 110,108 |
Total consumer loans |  |  | 588 |  |  |  | 306 |  |  |  | 1,103 |  |  |  | 1,998 |  |  |  | 139,847 |  |  |  | 141,845 |
Total loans |  | $ | 5,239 |  |  | $ | 4,617 |  |  | $ | 8,006 |  |  | $ | 17,862 |  |  | $ | 815,877 |  |  | $ | 833,739 |
Nonaccrual loans, segregated by class of loan, were as follows:
|  | June 30, |  |  | December 31, |
(In thousands) |  | 2022 |  |  | 2021 |
Residential mortgage loans: |  |  |  |  |  |
1-4 family first-lien residential mortgages |  | $ | 1,584 |  |  | $ | 891 |
|  |  | 1,584 |  |  |  | 891 |
Commercial loans: |  |  |  |  |  |
Real estate |  |  | 4,461 |  |  |  | 4,407 |
Lines of credit |  |  | 1,794 |  |  |  | 629 |
Other commercial and industrial |  |  | 2,241 |  |  |  | 1,261 |
|  |  | 8,496 |  |  |  | 6,297 |
Consumer loans: |  |  |  |  |  |
Home equity and junior liens |  |  | 379 |  |  |  | 252 |
Other consumer |  |  | 1,228 |  |  |  | 852 |
Total consumer loans |  |  | 1,607 |  |  |  | 1,104 |
Total nonaccrual loans |  | $ | 11,687 |  |  | $ | 8,292 |
At December 31, 2021, the Bank's 44 nonperforming loans represented 0.99% of total loans, with an aggregate outstanding balance of $8.3 million, as compared to 53 loans with an aggregate outstanding balance of $11.7 million at June 30, 2022. This increase of $3.4 million was primarily the result of the addition of a single commercial loan relationship in the amount of $2.6 million as well as a net increase in the balances of certain other smaller balance loan categories. The $2.6 million in nonaccrual loans discussed above were returned to accrual status in July 2022. At March 31, 2022, the Bank's 51 nonperforming loans represented 0.93% of total loans, with an aggregate outstanding balance of $7.9 million, as compared to 53 loans with an aggregate outstanding balance of $11.7 million at June 30, 2022. This increase of $3.8 million was primarily the result of the addition of a single nonaccrual commercial loan in the amount of $2.6 million as well as a net increase in the balances of certain other smaller balance loan categories. The $2.6 million nonaccrual commercial loan discussed above was returned to accrual status in July 2022. The Bank's management is actively working with each of the nonaccrual loan borrowers and believes that the ultimate resolution of these loans will not have material effect on the results of the Company's operations in future periods. The Company is required to disclose certain activities related to Troubled Debt Restructurings (“TDR”) in accordance with accounting guidance. Certain loans have been modified as a TDR where economic concessions have been granted to a borrower who is experiencing, or expected to experience, financial difficulties. These economic concessions could include a reduction in the loan interest rate, extension of payment terms, reduction of principal amortization, or other actions that it would not otherwise consider for a new loan with similar risk characteristics. The Company is required to disclose new TDRs for each reporting period for which an income statement is being presented. The pre-modification outstanding recorded investment is the principal loan balance less the provision for loan losses before the loan was modified as a TDR. The post-modification outstanding recorded investment is the principal balance less the provision for loan losses after the loan was modified as a TDR. Additional provision for loan losses is the change in the allowance for loan losses between the pre-modification outstanding recorded investment and post-modification outstanding recorded investment. The Company had one loan that was modified as a TDR for the three months ended June 30, 2022. The Company had two loans that were modified as TDRs for the six months ended June 30, 2022. The tables below detail loans that had been modified as TDRs for the three and six months ended June 30, 2022.
| For the three months ended June 30, 2022 |
(In thousands, except number of loans) | Number of loans |  | Pre-modification outstanding recorded investment |  |  | Post-modification outstanding recorded investment |  |  | Additional provision for loan losses |
Commercial real estate loans | 1 |  | $ | 18 |  |  | $ | 18 |  |  | $ | - |
| For the six months ended June 30, 2022 |
(In thousands, except number of loans) | Number of loans |  | Pre-modification outstanding recorded investment |  |  | Post-modification outstanding recorded investment |  |  | Additional provision for loan losses |
Residential real estate loans | 2 |  | $ | 373 |  |  | $ | 373 |  |  | $ | - |
The loans evaluated for impairment for the three and six months ended June 30, 2022 have been classified as TDRs due to economic concessions granted, which consisted of a reduction in the stated interest rate, a significant delay in the timing of the payment or an extended maturity date that will result in a significant delay in payment from the original terms. The Company had no loans that were modified as TDRs for the three months ended June 30, 2021. The Company had five loans that were modified as TDRs for the six months ended June 30, 2021. The Company is required to disclose loans that have been modified as TDRs within the previous 12 months in which there was payment default after the restructuring. The Company defines payment default as any loans 90 days past due on contractual payments. The Company had no loans that were modified as TDRs during the twelve months prior to June 30, 2022, which had subsequently defaulted during the six months ended June 30, 2022. The Company had no loans that were modified as TDRs during the twelve months prior to June 30, 2021, which had subsequently defaulted during the six months ended June 30, 2021. When the Company modifies a loan within a portfolio segment that is individually evaluated for impairment, a potential impairment is analyzed either based on the present value of the expected future cash flows discounted at the interest rate of the original loan terms or the fair value of the collateral less costs to sell. If it is determined that the value of the loan is less than its recorded investment, then impairment is recognized as a component of the provision for loan losses, an associated increase to the allowance for loan losses or as a charge-off to the allowance for loan losses in the current period. Impaired Loans The following table summarizes impaired loan information by portfolio class at the indicated dates:
|  | June 30, 2022 |  |  | December 31, 2021 |
|  |  |  |  | Unpaid |  |  |  |  |  |  |  |  | Unpaid |  |  |  |
|  | Recorded |  |  | Principal |  |  | Related |  |  | Recorded |  |  | Principal |  |  | Related |
(In thousands) |  | Investment |  |  | Balance |  |  | Allowance |  |  | Investment |  |  | Balance |  |  | Allowance |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family first-lien residential mortgages |  | $ | 677 |  |  | $ | 677 |  |  | $ | - |  |  | $ | 666 |  |  | $ | 666 |  |  | $ | - |
Commercial real estate |  |  | 4,112 |  |  |  | 4,209 |  |  |  | - |  |  |  | 4,708 |  |  |  | 4,801 |  |  |  | - |
Commercial lines of credit |  |  | 100 |  |  |  | 100 |  |  |  | - |  |  |  | 100 |  |  |  | 104 |  |  |  | - |
Other commercial and industrial |  |  | 276 |  |  |  | 317 |  |  |  | - |  |  |  | 357 |  |  |  | 396 |  |  |  | - |
Home equity and junior liens |  |  | 90 |  |  |  | 90 |  |  |  | - |  |  |  | 93 |  |  |  | 93 |  |  |  | - |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family first-lien residential mortgages |  |  | 465 |  |  |  | 465 |  |  |  | 95 |  |  |  | 539 |  |  |  | 539 |  |  |  | 90 |
Commercial real estate |  |  | 2,845 |  |  |  | 2,845 |  |  |  | 359 |  |  |  | 2,450 |  |  |  | 2,450 |  |  |  | 300 |
Commercial lines of credit |  |  | 44 |  |  |  | 50 |  |  |  | 44 |  |  |  | 53 |  |  |  | 53 |  |  |  | 53 |
Other commercial and industrial |  |  | 1,680 |  |  |  | 1,686 |  |  |  | 1,208 |  |  |  | 1,852 |  |  |  | 1,852 |  |  |  | 1,318 |
Home equity and junior liens |  |  | 538 |  |  |  | 538 |  |  |  | 114 |  |  |  | 539 |  |  |  | 539 |  |  |  | 114 |
Total: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family first-lien residential mortgages |  |  | 1,141 |  |  |  | 1,141 |  |  |  | 95 |  |  |  | 1,205 |  |  |  | 1,205 |  |  |  | 90 |
Commercial real estate |  |  | 6,956 |  |  |  | 7,054 |  |  |  | 359 |  |  |  | 7,158 |  |  |  | 7,251 |  |  |  | 300 |
Commercial lines of credit |  |  | 144 |  |  |  | 150 |  |  |  | 44 |  |  |  | 153 |  |  |  | 157 |  |  |  | 53 |
Other commercial and industrial |  |  | 1,957 |  |  |  | 2,003 |  |  |  | 1,208 |  |  |  | 2,209 |  |  |  | 2,248 |  |  |  | 1,318 |
Home equity and junior liens |  |  | 628 |  |  |  | 628 |  |  |  | 114 |  |  |  | 632 |  |  |  | 632 |  |  |  | 114 |
Totals |  | $ | 10,826 |  |  | $ | 10,975 |  |  | $ | 1,820 |  |  | $ | 11,357 |  |  | $ | 11,493 |  |  | $ | 1,875 |
The following table presents the average recorded investment in impaired loans for the periods indicated:
|  | For the three months ended |  | For the six months ended |
|  | June 30, |  | June 30, |
(In thousands) |  | 2022 |  |  | 2021 |  | 2022 |  |  | 2021 |
1-4 family first-lien residential mortgages |  | $ | 1,166 |  |  | $ | 1,503 |  | $ | 1,178 |  |  | $ | 1,618 |
Commercial real estate |  |  | 7,035 |  |  |  | 10,234 |  |  | 7,076 |  |  |  | 11,083 |
Commercial lines of credit |  |  | 146 |  |  |  | 982 |  |  | 148 |  |  |  | 963 |
Other commercial and industrial |  |  | 2,071 |  |  |  | 6,990 |  |  | 2,117 |  |  |  | 6,986 |
Home equity and junior liens |  |  | 629 |  |  |  | 578 |  |  | 630 |  |  |  | 458 |
Other consumer |  |  | - |  |  |  | 86 |  |  | - |  |  |  | 84 |
Total |  | $ | 11,047 |  |  | $ | 20,373 |  | $ | 11,149 |  |  | $ | 21,192 |
The following table presents the cash basis interest income recognized on impaired loans for the periods indicated:
|  | For the three months ended |  | For the six months ended |
|  | June 30, |  | June 30, |
(In thousands) |  | 2022 |  |  | 2021 |  | 2022 |  |  | 2021 |
1-4 family first-lien residential mortgages |  | $ | 14 |  |  | $ | 16 |  | $ | 30 |  |  | $ | 32 |
Commercial real estate |  |  | 70 |  |  |  | 44 |  |  | 133 |  |  |  | 109 |
Commercial lines of credit |  |  | 1 |  |  |  | 15 |  |  | 3 |  |  |  | 25 |
Other commercial and industrial |  |  | 22 |  |  |  | 49 |  |  | 42 |  |  |  | 74 |
Home equity and junior liens |  |  | 6 |  |  |  | 5 |  |  | 12 |  |  |  | 6 |
Other consumer |  |  | - |  |  |  | 1 |  |  | - |  |  |  | 3 |
Total |  | $ | 113 |  |  | $ | 130 |  | $ | 220 |  |  | $ | 249 |

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI https://asc.fasb.org/subtopic&trid=2196772 + Details
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