The following table presents the loan portfolio by class at December 31, 2021 and 2020.

The Company participated in the PPP and funded 508 PPP loans totaling $32,064,000 in 2020 and 362 second round PPP loans totaling $18,931,000 in 2021. As of December 31, 2021, 194 PPP loans totaling $10,132,000 were outstanding with related unamortized net fees of $485,000. As of December 31, 2020, 461 PPP loans totaling $28,715,000 were outstanding with related unamortized net fees of $475,000. All the Company’s PPP loans are part of the commercial, financial and agricultural loan portfolio.

The following tables summarize loans and the activity in the allowance for loan losses by loan class, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of and for the years ended December 31, 2021 and 2020:

The following tables summarize information regarding impaired loans by portfolio class as of December 31, 2021 and December 31, 2020:

The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. For purposes of this disclosure, the unpaid principal balance is not reduced for partial charge-offs.

The following table presents non-accrual loans by classes of the loan portfolio as of December 31, 2021 and December 31, 2020:

Interest income not recorded based on the original contractual terms of the loans for non-accrual loans was $49,000 and $97,000 in 2021 and 2020, respectively. The decline in unrecorded interest income on non-accrual loans in 2021 compared to 2020 was due to the payoff of several non-accrual loans during the year ended December 31, 2021. Consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process at December 30, 2021 and December 31, 2020 totaled $85,000 and $152,000, respectively.

The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the past due status as of December 31, 2021 and December 31, 2020:

(1)	These loans are guaranteed, or well secured, and there is an effective means of collection in process.

(2)	Loans are considered past due when the borrower is in arrears on two or more monthly payments.

Troubled Debt Restructurings

As of December 31, 2021 and 2020, the Company had a recorded investment in troubled debt restructurings of $5,555,000 and $3,802,000, respectively. There were no specific reserves for those loans on December 31, 2021 and 2020. There were also no commitments to lend additional amounts to these customers as of December 31, 2021 and 2020.

The modification of the terms of the real estate - commercial loans that occurred during the years ended December 31, 2021 and December 31, 2020 consisted of declines in the stated rate of interest below the current market rate.

As of December 31, 2021, there were no restructured loans in default with respect to the restructured terms. There were no defaults of troubled debt restructurings within 12 months of restructure during 2021 or 2020.

The following tables summarize loans whose terms were modified, resulting in troubled debt restructurings during 2021 and 2020.


(Dollars in thousands)		Pre-Modification		Post-Modification
	Number of	Outstanding		Outstanding
	Contracts	Recorded Investment		Recorded Investment		Recorded Investment
Year ended December 31, 2021
Accruing troubled debt restructurings:
Real estate - commercial	1	$	2,254	$	2,254	$	1,841
	1	$	2,254	$	2,254	$	1,841

The troubled debt restructuring described above had no specific allowance for loan losses and resulted in no charge-offs during the year ending December 31, 2021.


(Dollars in thousands)		Pre-Modification		Post-Modification
	Number of	Outstanding		Outstanding
	Contracts	Recorded Investment		Recorded Investment		Recorded Investment
Year ended December 31, 2020
Accruing troubled debt restructurings:
Real estate - commercial	2	$	3,161	$	3,161	$	3,143
Real estate - mortgage	1		4		4		4
	3	$	3,165	$	3,165	$	3,147

The troubled debt restructurings described above had no specific allowance for loan losses and resulted in no charge-offs during the year ending December 31, 2020.

The Company worked with borrowers impacted by COVID-19 and provided short-term modifications to include interest and/or principal payment deferrals in 2020 and the beginning of 2021. These modifications were excluded from troubled debt restructuring classification under Section 4013 of the CARES Act or under applicable interagency guidance of the federal banking regulators. As of December 31, 2021, all loans previously placed on deferral under the under Section 4013 or interagency guidance had returned to contractual debt service.

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes loans to commercial customers with an aggregate loan exposure greater than $500,000

and for lines of credit in excess of $50,000. This analysis is performed on a continuing basis with all such loans reviewed annually. The Company uses the following definitions for risk ratings:

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Loans in this category are reviewed no less than quarterly.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Loans in this category are reviewed no less than monthly.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, based on currently existing facts, conditions, and values, highly questionable and improbable. Loans in this category are reviewed no less than monthly.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered pass-rated loans.

The following table presents the classes of the loan portfolio 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 December 31, 2021 and December 31, 2020. The decrease in the special mention category at December 31, 2021 compared to December 31, 2020 was predominantly the result of upgrading participated hospitality and recreational facility relationships from special mention to pass in 2021 due to their continued performance during the pandemic.


(Dollars in thousands)			Special
As of December 31, 2021	Pass		Mention		Substandard		Doubtful		Total
Commercial, financial and agricultural	$	61,372	$	577	$	690	$	—	$	62,639
Real estate - commercial		137,684		16,429		5,693		—		159,806
Real estate - construction		42,394		—		887		—		43,281
Real estate - mortgage		130,584		252		918		—		131,754
Obligations of states and political subdivisions		16,323		—		—		—		16,323
Personal		4,500		—		—		—		4,500
Total	$	392,857	$	17,258	$	8,188	$	—	$	418,303


(Dollars in thousands)			Special
As of December 31, 2020	Pass		Mention		Substandard		Doubtful		Total
Commercial, financial and agricultural	$	71,983	$	495	$	579	$	—	$	73,057
Real estate - commercial		99,828		15,198		7,631		41		122,698
Real estate - construction		36,332		24,644		75		—		61,051
Real estate - mortgage		139,787		289		1,317		45		141,438
Obligations of states and political subdivisions		18,550		—		—		—		18,550
Personal		5,867		—		—		—		5,867
Total	$	372,347	$	40,626	$	9,602	$	86	$	422,661