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LOANS AND ALLOWANCE FOR CREDIT LOSSES
 9 Months Ended
Sep. 30, 2023
Credit Loss [Abstract]  
LOANS AND ALLOWANCE FOR CREDIT LOSSES LOANS AND ALLOWANCE FOR CREDIT LOSSES
The composition of the loan portfolio, net of deferred origination fees and costs, is summarized as follows (in thousands):
September 30, 2023December 31, 2022
Commercial and agricultural:
Commercial and industrial$254,215 $252,044 
Agricultural269 249 
Commercial mortgages:
Construction140,480 108,243 
Commercial mortgages, other946,053 888,670 
Residential mortgages281,361 285,672 
Consumer loans:
Home equity lines and loans87,078 81,401 
Indirect consumer loans211,046 202,124 
Direct consumer loans10,186 11,045 
Total loans, net of deferred loan fees and costs1,930,688 1,829,448 
Allowance for credit losses(20,252)(19,659)
Loans, net$1,910,436 $1,809,789 

The Corporation's concentrations of credit risk by loan type are reflected in the preceding table. The concentrations of credit risk with standby letters of credit, committed lines of credit and commitments to originate new loans generally follow the loan classifications in the table above.

Accrued interest receivable on loans amounted to $7.2 million at September 30, 2023 and $6.5 million at December 31, 2022. Accrued interest receivable on loans is included in the "accrued interest receivable and other assets" line item on the Corporation's Consolidated Balance Sheets, and is excluded from the estimate of credit losses.

The following table presents the activity in the allowance for credit losses by portfolio segment for the three month period ended September 30, 2023 (in thousands):
Three Months Ended September 30, 2023
Allowance for credit lossesCommercial and AgriculturalCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance, July 1, 2023$4,121 $10,994 $1,905 $3,152 $20,172 
Charge-offs(81)— — (350)(431)
Recoveries4 1 — 70 75 
Net recoveries (charge-offs)(77)1 — (280)(356)
Provision (1)
102 30 (37)341 436 
Ending balance, September 30, 2023$4,146 $11,025 $1,868 $3,213 $20,252 
(1)Additional provision related to off-balance sheet exposure was $(13)thousand for the three months ended September 30, 2023.

Refer to Note 1-Summary of Significant Accounting Policies in our Annual report on Form 10-K for the fiscal year ended December 31, 2022, for the allowance for loan losses policy effective prior to the adoption of ASC 326-Financial Instruments-Credit Losses, as of December 31, 2022.
The following table presents the activity in the allowance for loan losses by portfolio segment for the three month period ended September 30, 2022 (in thousands):
Three Months Ended September 30, 2022
Allowance for loan lossesCommercial and AgriculturalCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance, July 1, 2022$3,564 $10,314 $1,714 $1,893 $17,485 
Charge-offs— — — (277)(277)
Recoveries6 1 40 121 168 
Net recoveries (charge-offs)6 1 40 (156)(109)
Provision
(55)671 42 597 1,255 
Ending balance, September 30, 2022$3,515 $10,986 $1,796 $2,334 $18,631 


The following table presents the activity in the allowance for credit losses by portfolio segment for the nine month period ended September 30, 2023 (in thousands):
Nine Months Ended September 30, 2023
Allowance for credit lossesCommercial and AgriculturalCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance, January 1, 2023$3,373 $11,576 $1,845 $2,865 $19,659 
Cumulative effect adjustment for the adoption of ASC 326909 (695)(16)176 374 
Beginning balance after cumulative effect adjustment, January 1, 20234,282 10,881 1,829 3,041 20,033 
Charge-offs(281)— — (785)(1,066)
Recoveries13 1 — 281 295 
Net recoveries (charge-offs)(268)1 — (504)(771)
Provision (1)
132 143 39 676 990 
Ending balance, September 30, 2023$4,146 $11,025 $1,868 $3,213 $20,252 

(1)Additional provision related to off-balance sheet exposure was $(28) thousand for the nine months ended September 30, 2023.

The following table presents the activity in the allowance for loan losses by portfolio segment for the nine month period ended September 30, 2022 (in thousands):
Nine Months Ended September 30, 2022
Allowance for loan lossesCommercial and AgriculturalCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance, January 1, 2022$3,591 $13,556 $1,803 $2,075 $21,025 
Charge-offs(20)(687)— (599)(1,306)
Recoveries37 3 40 466 546 
Net recoveries (charge-offs)17 (684)40 (133)(760)
Provision(93)(1,886)(47)392 (1,634)
Ending balance, September 30, 2022$3,515 $10,986 $1,796 $2,334 $18,631 
Unfunded Commitments
The allowance for credit losses on unfunded commitments is recognized as a liability (other liabilities in the Consolidated Balance Sheets), with adjustments to the reserve recognized in the provision for credit losses on the Consolidated Statements of Income. The Corporation established a reserve for unfunded commitments in conjunction with its adoption of ASC 326-Financial Instruments-Credit Losses.

The following table presents the activity in the allowance for credit losses on unfunded commitments for the three month periods ended September 30, 2023 and 2022:
For the Three Months Ended
Allowance for credit losses on unfunded commitments September 30, 2023September 30, 2022
Beginning balance $1,041 $— 
Impact of ASC 326 adoption— — 
Provision for unfunded commitments 13 — 
Ending balance $1,054 $— 

The following table presents the provision for credit losses on loans and unfunded commitments for the three month period ended September 30, 2023, based upon the current expected credit loss methodology, and the provision for loan losses on loans for the three month period ended September 30, 2022, based upon the incurred loss methodology:
For the Three Months Ended
Provision for credit lossesSeptember 30, 2023September 30, 2022
Provision for credit losses on loans $436 $1,255 
Provision for unfunded commitments 13 — 
Total provision (credit) for credit losses$449 $1,255 

The following table presents the activity in the allowance for credit losses on unfunded commitments for the nine month periods ended September 30, 2023 and 2022:
For the Nine Months Ended
Allowance for credit losses on unfunded commitments September 30, 2023September 30, 2022
Beginning balance $— $— 
Impact of ASC 326 adoption1,082 — 
Provision for unfunded commitments (28)— 
Ending balance $1,054 $— 
The following table presents the provision for credit losses on loans and unfunded commitments for the nine month period ended September 30, 2023, based upon the current expected credit loss methodology, and the provision for loan losses on loans for the nine month period ended September 30, 2022, based upon the incurred loss methodology:
For the Nine Months Ended
Provision for credit lossesSeptember 30, 2023September 30, 2022
Provision for credit losses on loans $990 $(1,634)
Provision for unfunded commitments (28)— 
Total provision (credit) for credit losses$962 $(1,634)
The following tables present the balance in the allowance for credit losses and allowance for loan losses, and the amortized cost basis in loans by portfolio segment, as of September 30, 2023 and December 31, 2022 (in thousands):
 September 30, 2023
Allowance for credit lossesCommercial and AgriculturalCommercial MortgagesResidential MortgagesConsumer LoansTotal
Ending allowance balance attributable to loans:
Individually analyzed$1,089 $30 $— $— $1,119 
Collectively analyzed3,057 10,995 1,868 3,213 19,133 
   Total ending allowance balance$4,146 $11,025 $1,868 $3,213 $20,252 

 December 31, 2022
Allowance for loan lossesCommercial and AgriculturalCommercial MortgagesResidential MortgagesConsumer LoansTotal
Ending allowance balance attributable to loans:
Individually evaluated for impairment$1,078 $38 $— $31 $1,147 
Collectively evaluated for impairment2,295 11,538 1,845 2,834 18,512 
   Total ending allowance balance$3,373 $11,576 $1,845 $2,865 $19,659 


 September 30, 2023
Loans:Commercial and AgriculturalCommercial MortgagesResidential MortgagesConsumer LoansTotal
Loans individually analyzed $1,174 $3,825 $— $— $4,999 
Loans collectively analyzed253,310 1,082,708 281,361 308,310 1,925,689 
   Total ending loans balance$254,484 $1,086,533 $281,361 $308,310 $1,930,688 


 December 31, 2022
Loans:Commercial and AgriculturalCommercial MortgagesResidential MortgagesConsumer LoansTotal
Loans individually evaluated for impairment$2,112 $4,383 $723 $264 $7,482 
Loans collectively evaluated for impairment250,181 992,530 284,949 294,306 1,821,966 
   Total ending loans balance$252,293 $996,913 $285,672 $294,570 $1,829,448 
Modifications to Loans Made to Borrowers Experiencing Financial Difficulty
Effective January 1, 2023, the Corporation adopted ASU 2022-02, Financial Instruments-Credit Losses (Topic 326)-Troubled Debt Restructurings and Vintage Disclosures. The Corporation may occasionally make modifications to loans where the borrower is considered to be experiencing financial difficulty. Types of modifications considered under ASU 2022-02 include principal reductions, interest rate reductions, term extensions, or a combination thereof.

The following tables summarize the amortized cost basis of loans modified during the three and nine month periods ended September 30, 2023:
Three Months Ended September 30, 2023
Loans modified under ASU 2022-02:Principal ReductionInterest Rate ReductionTerm ExtensionPayment DelayCombinationTotal
(%) of Loan Class (1)
Commercial mortgages, other$— $— $875 $— $— $875 0.09 %
Home equity lines and loans — — 117 — — 117 0.13 %
Total$— $— $992 $— $— $992 
(1) Represents the amortized cost basis of loans modified during the period as a percentage of the period-end loan balances by class.
Nine Months Ended September 30, 2023
Loans modified under ASU 2022-02:Principal ReductionInterest Rate ReductionTerm ExtensionPayment DelayCombinationTotal
(%) of Loan Class (1)
Commercial mortgages, other$— $— $1,150 $1,920 $— $3,070 0.32 %
Home equity lines and loans— — 117 — — 117 0.13 %
Total$— $— $1,267 $1,920 $— $3,187 
(1) Represents the amortized cost basis of loans modified during the period as a percentage of the period-end loan balances by class.

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the three month period ended September 30, 2023:

Three Months Ended September 30, 2023
Effect of loan modifications under ASU 2022-02:Principal Reduction
(in thousands)		Weighted-average interest rate reduction (%)Weighted-average term extension
(in months)		Weighted-average payment delay
(in months)
Commercial mortgages, other$——%6—
Home equity lines and loans——%180—


The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the nine month period ended September 30, 2023:

Nine Months Ended September 30, 2023
Effect of loan modifications under ASU 2022-02:Principal Reduction
(in thousands)		Weighted-average interest rate reduction (%)Weighted-average term extension
(in months)		Weighted-average payment delay
(in months)
Commercial mortgages, other$——%194
Home equity lines and loans——%180—

There were no loans modified to borrowers experiencing financial difficulty during the prior twelve months that experienced payment default during the three and nine month periods ended September 30, 2023.
Individually Analyzed Loans
Effective January 1, 2023, the Corporation began analyzing loans on an individual basis when management determined that the loan no longer exhibited risk characteristics consistent with the risk characteristics existing in its designated pool of loans, under the Corporation's CECL methodology. This differs from the definition of loans considered to be impaired at December 31, 2022. Loans individually analyzed include certain non-accrual commercial and consumer loans, as well as certain loans previously identified under prior troubled debt restructuring (TDR) guidance.
As of September 30, 2023, the amortized cost basis of individually analyzed loans amounted to $5.0 million, of which $4.1 million were considered collateral dependent. For collateral dependent loans where the borrower is experiencing financial difficulty and repayment is likely to be substantially provided through the sale or operation of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the loan, at measurement date. Certain assets held as collateral may be exposed to future deterioration in fair value, particularly due to changes in real estate markets or usage.

The following table presents the amortized cost basis and related allowance for credit loss of individually analyzed loans considered to be collateral dependent as of September 30, 2023 (in thousands):
September 30, 2023
Amortized Cost BasisRelated Allowance
Commercial and agricultural:
Commercial and industrial (1) (3)
$286 $211 
Commercial mortgages:
Commercial mortgages, other (1) (2)
3,847 30 
Total$4,133 $241 
(1) Secured by commercial real estate
(2) Secured by residential real estate
(3) Secured by business assets
As of January 1, 2023, a loan is classified for individual analysis, when based on current information and events, management has determined that it no longer exhibits risk characteristics consistent with its designated pool. This differs from the definition of loans considered to be impaired as of December 31, 2022. The Corporation considered a loan to be impaired when, based on currently available information, it was deemed probable that the Corporation would not be able to collect on the loan's contractually determined principal and interest payments. The Corporation identified loss allocations for impaired loans on an individual basis, and in conformity with its methodology under the incurred loss framework.

The following is a summary of impaired loans as of December 31, 2022 (in thousands):
 December 31, 2022
With no related allowance recorded:Unpaid Principal BalanceRecorded InvestmentAllowance for Loan Losses Allocated
Commercial and agricultural:
Commercial and industrial$1,026 $1,025 $— 
Commercial mortgages:
Construction5 5 — 
Commercial mortgages, other4,346 4,341 — 
Residential mortgages767 760 — 
Consumer loans:
Home equity lines and loans154 138 — 
With an allowance recorded:
Commercial and agricultural:
Commercial and industrial1,086 1,088 1,078 
Commercial mortgages:
Commercial mortgages, other38 38 38 
Consumer loans:
Home equity lines and loans126 127 31 
Total$7,548 $7,522 $1,147 
The following tables present the average amortized cost basis and interest income recognized on loans individually evaluated, by class of loans, for the three and nine month periods ended September 30, 2023 and 2022 (in thousands):

 Three Months Ended 
 September 30, 2023		Three Months Ended 
 September 30, 2022
With no related allowance recorded:Average Amortized Cost Basis
Interest Income Recognized (1)
Average Amortized Cost Basis
Interest Income Recognized (1)
Commercial and agricultural:
   Commercial and industrial$163 $— $585 $— 
Agricultural— — — — 
Commercial mortgages:
Construction— — 55 — 
Commercial mortgages, other3,863 3 4,150 7 
Residential mortgages— — 846 9 
Consumer loans:
Home equity lines & loans51 — 149 — 
With an allowance recorded:
Commercial and agricultural:
Commercial and industrial1,268 4 1,643 2 
Agricultural14 — — — 
Commercial mortgages:
Commercial mortgages, other31 — 42 — 
Consumer loans:
Home equity lines and loans78 — 134 — 
Total$5,468 $7 $7,604 $18 
(1)Cash basis interest income approximates interest income recognized.
 Nine Months Ended 
 September 30, 2023		Nine Months Ended 
 September 30, 2022
With no related allowance recorded:Average Amortized Cost Basis
Interest Income Recognized (1)
Average Amortized Cost Basis
Interest Income Recognized (1)
Commercial and agricultural:
   Commercial and industrial$520 $— $761 $— 
Agricultural— — — — 
Commercial mortgages:
Construction2 — 88 — 
Commercial mortgages, other4,052 12 4,171 14 
Residential mortgages359 — 890 19 
Consumer loans:
Home equity lines & loans123 — 157 — 
With an allowance recorded:
Commercial and agricultural:
Commercial and industrial1,168 13 1,545 5 
Agricultural7 — — — 
Commercial mortgages:
Commercial mortgages, other34 — 1,563 — 
Consumer loans:
Home equity lines and loans42 — 139 — 
Total$6,307 $25 $9,314 $38 
(1)Cash basis interest income approximates interest income recognized.
The following table presents the amortized cost basis in non-accrual, loans past due 90 days or more and still accruing, and the amortized basis of non-accrual loans with no associated allocation in the allowance for credit losses related to non-accrual loans, by class of loan as of September 30, 2023 and December 31, 2022 (in thousands):

Non-accrual with no allowance for credit lossesNon-accrualLoans Past Due 90 Days or More and Still Accruing
September 30, 2023September 30, 2023December 31, 2022September 30, 2023December 31, 2022
Commercial and agricultural:
Commercial and industrial$22 $1,004 1,946 $— $1 
Agricultural— 28 — — — 
Commercial mortgages:
Construction— — 5 — — 
Commercial mortgages, other3,795 3,824 3,928 — — 
Residential mortgages776 776 986 — — 
Consumer loans:
Home equity lines and loans565 565 760 — — 
Indirect consumer loans621 621 540 — — 
Direct consumer loans8 8 13 — — 
Total$5,787 $6,826 $8,178 $— $1 



The following tables present the aging of the amortized cost basis of loans as of September 30, 2023 and December 31, 2022 (in thousands):
September 30, 2023
 30 - 59 Days Past Due60 - 89 Days Past Due90 Days or More Past DueTotal Past DueLoans Not Past DueTotal
Commercial and agricultural:
Commercial and industrial$195 $16 $— $211 $254,004 $254,215 
Agricultural— — — — 269 269 
Commercial mortgages: 
Construction2,206 — — 2,206 138,274 140,480 
Commercial mortgages, other1,073 4 261 1,338 944,715 946,053 
Residential mortgages1,217 63 255 1,535 279,826 281,361 
Consumer loans: 
Home equity lines and loans151 49 421 621 86,457 87,078 
Indirect consumer loans1,313 312 368 1,993 209,053 211,046 
Direct consumer loans9 — 6 15 10,171 10,186 
Total$6,164 $444 $1,311 $7,919 $1,922,769 $1,930,688 
December 31, 2022
 30 - 59 Days Past Due60 - 89 Days Past Due90 Days or More Past DueTotal Past DueLoans Not Past DueTotal
Commercial and agricultural:
Commercial and industrial$74 $3 $1 $78 $251,966 $252,044 
Agricultural— — — — 249 249 
Commercial mortgages: 
Construction— — — — 108,243 108,243 
Commercial mortgages, other1,058 — 486 1,544 887,126 888,670 
Residential mortgages1,360 709 294 2,363 283,309 285,672 
Consumer loans: 
Home equity lines and loans193 121 442 756 80,645 81,401 
Indirect consumer loans1,397 193 250 1,840 200,284 202,124 
Direct consumer loans2 19 1 22 11,023 11,045 
Total$4,084 $1,045 $1,474 $6,603 $1,822,845 $1,829,448 


Credit Quality Indicators

The Corporation establishes a risk rating at origination for all commercial loans. The main factors considered in assigning risk ratings include, but are not limited to: historic and future debt service coverage, collateral position, operating performance, liquidity, leverage, payment history, management ability, and the customer’s industry. Commercial relationship managers monitor all loans in their respective portfolios for any changes in the borrower’s ability to service its debt and affirm the risk ratings for the loans at least annually.

For retail loans, which include residential mortgages, indirect and direct consumer loans, and home equity lines and loans, once a loan is properly approved and closed, the Corporation evaluates credit quality based upon loan repayment. Retail loans are not rated until they become 90 days past due.

The Corporation uses the risk rating system to identify criticized and classified loans. Commercial relationships within the criticized and classified risk ratings are analyzed quarterly.  The Corporation uses the following definitions for criticized and classified loans (which are consistent with regulatory guidelines):

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 the institution’s credit position at some future date.

Substandard – Loans classified as substandard are inadequately protected by the current net worth and paying capability 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.

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, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Commercial loans not meeting the criteria above to be considered criticized or classified, are considered to be pass rated loans. Loans listed as not rated, are included in groups of homogeneous loans performing under terms of the loan notes.
Based on the analyses performed as of September 30, 2023, the risk category of the amortized cost basis of loans by class of loans and vintage, as well as the gross charge-offs by loan class and vintage for the period, are as follows (in thousands):
Term Loans Amortized Cost by Origination YearRevolving Loans Amortized CostRevolving Loans Converted to TermTotal
20232022202120202019Prior
Commercial & industrial
Pass$26,871 $39,555 $18,180 $11,240 $34,620 $8,896 $98,625 $— $237,987 
Special mention191 — 195 — — 442 4,142 8,765 13,735 
Substandard — 28 992 122 25 318 — 169 1,654 
Doubtful— — — — — 815 — 24 839 
Total27,062 39,583 19,367 11,362 34,645 10,471 102,767 8,958 254,215 
Gross charge-offs — — — — 9 272 — — 281 
Agricultural
Pass— 16 157 — — — 68 — 241 
Special mention— — — — — — — — — 
Substandard— — — — — — — 28 28 
Doubtful— — — — — — — — — 
Total— 16 157 — — — 68 28 269 
Gross charge-offs— — — — — — — — — 
Construction
Pass11,309 2,898 — — 104 1,187 122,838 — 138,336 
Special mention— — — — — — — — — 
Substandard— — — — 2,144 — — — 2,144 
Doubtful— — — — — — — — — 
Total11,309 2,898 — — 2,248 1,187 122,838 — 140,480 
Gross charge-offs— — — — — — — — — 
Commercial mortgages
Pass 76,617 213,196 124,125 94,752 39,742 170,439 199,582 — 918,453 
Special mention— 2,543 8,286 1,016 — 3,562 — 5,516 20,923 
Substandard273 1,133 350 — — 4,794 97 — 6,647 
Doubtful— — — — — 30 — — 30 
Total76,890 216,872 132,761 95,768 39,742 178,825 199,679 5,516 946,053 
Gross charge-offs— — — — — — — — — 
Residential mortgages
Not rated11,858 51,718 50,393 70,699 15,602 47,380 32,935 — 280,585 
Substandard — 107 63 — 173 433 — — 776 
Total 11,858 51,825 50,456 70,699 15,775 47,813 32,935 — 281,361 
Gross charge-offs— — — — — — — — — 
Home equity lines and loans
Not rated11,622 17,562 5,948 3,242 2,949 11,183 34,007 — 86,513 
Substandard — 76 — — — 290 199 — 565 
Total11,622 17,638 5,948 3,242 2,949 11,473 34,206 — 87,078 
Gross charge-offs— — — — — — 12 — 12 
Indirect consumer
Not rated58,871 105,980 25,749 10,666 4,903 4,256 — — 210,425 
Substandard 105 191 128 40 44 113 — — 621 
Total58,976 106,171 25,877 10,706 4,947 4,369 — — 211,046 
Gross charge-offs88 276 176 94 20 45 — — 699 
Direct consumer
Not rated2,599 3,125 945 390 108 379 2,631 — 10,177 
Substandard— 6 — 3 — — — — 9 
Total 2,599 3,131 945 393 108 379 2,631 — 10,186 
Gross charge-offs— 8 8 4 — 54 — — 74 
Total loans $200,316 $438,134 $235,511 $192,170 $100,414 $254,517 $495,124 $14,502 $1,930,688 
Total gross charge-offs$88 $284 $184 $98 $29 $371 $12 $— $1,066 
Prior to the adoption of ASC 326-Financial Instruments-Credit Losses, loans not meeting the criteria above that were analyzed individually as part of the above described process were considered pass rated loans as of December 31, 2022. Based upon the analyses performed as of December 31, 2022, the risk category of the recorded investment of loans by class of loans was as follows (in thousands):
 December 31, 2022
 Not RatedPassSpecial MentionSubstandardDoubtfulTotal
Commercial and agricultural:
Commercial and industrial$— $235,900 $13,349 $2,899 $893 $253,041 
Agricultural— 250 — — — 250 
Commercial mortgages:
Construction— 108,488 178 5 — 108,671 
Commercial mortgages— 860,389 23,938 7,825 38 892,190 
Residential mortgages285,459 — — 986 — 286,445 
Consumer loans:
Home equity lines and loans80,942 — — 760 — 81,702 
Indirect consumer loans202,050 — — 540 — 202,590 
Direct consumer loans11,094 — — 13 — 11,107 
Total$579,545 $1,205,027 $37,465 $13,028 $931 $1,835,996 

For residential and consumer loan classes, the Corporation also evaluated credit quality based on the aging status of the loan, which was presented by payment activity. The following table presents the amortized cost basis in residential and consumer loans based on payment activity as of September 30, 2023 (in thousands):
 Consumer Loans
September 30, 2023Residential MortgagesHome Equity Lines and LoansIndirect Consumer LoansOther Direct Consumer Loans
Performing$280,585 $86,513 $210,425 $10,178 
Non-Performing776 565 621 8 
 Total$281,361 $87,078 $211,046 $10,186 

Prior to the adoption of ASC 326-Financial Instruments-Credit Losses, the Corporation also evaluated credit quality based on the aging status of the loan, which was presented, by payment activity. The following table presents the recorded investment in residential and consumer loans based on payment activity as of December 31, 2022 (in thousands):
 Consumer Loans
December 31, 2022Residential MortgagesHome Equity Lines and LoansIndirect Consumer LoansOther Direct Consumer Loans
Performing$285,459 $80,942 $202,050 $11,094 
Non-Performing986 760 540 13 
 Total$286,445 $81,702 $202,590 $11,107