Loans and Allowance for Credit Losses on Loans

Schedule of changes in the allowance for loan losses by segment of loans based on method of impairment



			Provision for
	Beginning		(Release of)						Ending
Allowance for credit losses	Balance		Credit Losses		Charge-offs		Recoveries		Balance
Three months ended September 30, 2021
Commercial	$	2,601	$	82	$	23	$	25	$	2,685
Leases		3,388		(41)		4		-		3,343
Commercial real estate - Investor		10,437		(890)		101		18		9,464
Commercial real estate - Owner occupied		1,086		99		5		7		1,187
Construction		3,048		(175)		-		-		2,873
Residential real estate - Investor		975		(287)		-		7		695
Residential real estate - Owner occupied		1,866		(116)		-		18		1,768
Multifamily		3,266		(121)		183		-		2,962
HELOC		1,604		13		-		28		1,645
HELOC - Purchased		229		(36)		-		-		193
Other		139		19		53		29		134
Ending Balance, September 30, 2021	$	28,639	$	(1,453)	$	369	$	132	$	26,949



			Provision for
	Beginning		(Release of)						Ending
Allowance for credit losses	Balance		Credit Losses		Charge-offs		Recoveries		Balance
Nine months ended September 30, 2021
Commercial	$	2,812	$	43	$	232	$	62	$	2,685
Leases		3,888		(513)		32		-		3,343
Commercial real estate - Investor		9,205		302		101		58		9,464
Commercial real estate - Owner occupied		2,251		(1,250)		39		225		1,187
Construction		4,054		(1,181)		-		-		2,873
Residential real estate - Investor		1,740		(1,328)		-		283		695
Residential real estate - Owner occupied		2,714		(1,074)		-		128		1,768
Multifamily		3,625		(480)		183		-		2,962
HELOC		1,749		(216)		17		129		1,645
HELOC - Purchased		199		(6)		-		-		193
Other		1,618		(1,483)		108		107		134
Ending Balance, September 30, 2021	$	33,855	$	(7,186)	$	712	$	992	$	26,949



			Impact of		Provision for
	Beginning		Adopting		(Release of)						Ending
Allowance for credit losses	Balance		ASC 326		Credit Losses		Charge-offs		Recoveries		Balance
Three months ended September 30, 2020
Commercial	$	2,292	$	-	$	98	$	5	$	12	$	2,397
Leases		2,012		-		1,965		119		-		3,858
Commercial real estate - Investor		7,725		-		783		-		102		8,610
Commercial real estate - Owner occupied		2,521		-		(535)		145		565		2,406
Construction		4,431		-		406		60		1		4,778
Residential real estate - Investor		2,217		-		(290)		3		18		1,942
Residential real estate - Owner occupied		3,204		-		(508)		-		25		2,721
Multifamily		3,518		-		(301)		-		-		3,217
HELOC		2,255		-		(359)		-		52		1,948
HELOC - Purchased		398		-		(43)		66		-		289
Other		700		-		64		53		41		752
Ending Balance, September 30, 2020	$	31,273	$	-	$	1,280	$	451	$	816	$	32,918

			Impact of		Provision for
Allowance for credit losses	Beginning		Adopting		(Release of)						Ending
Nine months ended September 30, 2020	Balance		ASC 326		Credit Losses		Charge-offs		Recoveries		Balance
Commercial	$	3,015	$	(292)	$	(250)	$	124	$	48	$	2,397
Leases		1,262		501		2,214		119		-		3,858
Commercial real estate - Investor		6,218		(741)		3,009		15		139		8,610
Commercial real estate - Owner occupied		3,678		(848)		556		1,546		566		2,406
Construction		513		1,334		2,990		60		1		4,778
Residential real estate - Investor		601		740		564		8		45		1,942
Residential real estate - Owner occupied		1,257		1,320		30		43		157		2,721
Multifamily		1,444		1,732		41		-		-		3,217
HELOC		1,161		1,526		(902)		85		248		1,948
HELOC - Purchased		-		-		355		66		-		289
Other		640		607		(433)		192		130		752
Ending Balance, September 30, 2020	$	19,789	$	5,879	$	8,174	$	2,258	$	1,334	$	32,918

The ACL on loans excludes $2.2 million, $3.0 million and $4.0 million of allowance for unfunded commitments, recorded within Other Liabilities, as of September 30, 2021, December 31, 2020 and September 30, 2020, respectively.

The following tables presents the collateral dependent loans and the related ACL allocated by segment of loans as of September 30, 2021 and December 31, 2020:


			Accounts								ACL
September 30, 2021	Real Estate		Receivable		Equipment		Other		Total		Allocation
Commercial	$	195	$	-	$	-	$	-	$	195	$	-
Leases		-		-		3,413		546		3,959		661
Commercial real estate - Investor		6,070		-		-		-		6,070		2,290
Commercial real estate - Owner occupied		4,373		-		-		2,523		6,896		7
Construction		4,898		-		-		-		4,898		988
Residential real estate - Investor		998		-		-		-		998		-
Residential real estate - Owner occupied		3,945		-		-		-		3,945		-
Multifamily		1,889		-		-		-		1,889		90
HELOC		700		-		-		-		700		195
HELOC - Purchased		181		-		-		-		181		-
Other		-		-		-		2		2		2
Total	$	23,249	$	-	$	3,413	$	3,071	$	29,733	$	4,233


			Accounts								ACL
December 31, 2020	Real Estate		Receivable		Equipment		Other		Total		Allocation
Commercial	$	-	$	1,070	$	-	$	55	$	1,125	$	56
Leases		-		-		2,377		597		2,974		880
Commercial real estate - Investor		4,179		-		-		-		4,179		84
Commercial real estate - Owner occupied		9,726		-		-		-		9,726		195
Construction		1,891		-		-		-		1,891		952
Residential real estate - Investor		928		-		-		-		928		-
Residential real estate - Owner occupied		3,535		-		-		-		3,535		10
Multifamily		3,838		-		-		-		3,838		378
HELOC		1,053		-		-		-		1,053		78
HELOC - Purchased		-		-		-		-		-		-
Other		-		-		-		4		4		4
Total	$	25,150	$	1,070	$	2,377	$	656	$	29,253	$	2,637

Schedule of Loans Inactive Deferral


September 30, 2021	1st Deferral		2nd Deferral		3rd Deferral		Total
Loans modified under CARES Act, in deferral	$	-	$	6,752	$	2,077	$	8,829
Loans modified under CARES Act, in nonaccrual, within deferral above		-		2,524		2,077		4,601

Schedule of credit quality indicators by class of loans


															Revolving
															Loans
															Converted
													Revolving		To Term
	2021		2020		2019		2018		2017		Prior		Loans		Loans		Total
Commercial
Pass	$	64,298	$	24,032	$	26,420	$	11,445	$	4,172	$	2,184	$	186,201	$	59	$	318,811
Special Mention		287		357		177		-		-		-		1,449		-		2,270
Substandard		233		200		-		34		-		-		-		-		467
Total commercial		64,818		24,589		26,597		11,479		4,172		2,184		187,650		59		321,548

Leases
Pass		59,361		47,677	$	36,332		10,311		1,752		2,588		-		-		158,021
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		2,918		664		35		806		-		-		4,423
Total leases		59,361		47,677		39,250		10,975		1,787		3,394		-		-		162,444

Commercial real estate - Investor
Pass		109,776		146,497		107,124		62,359		44,644		42,916		2,697		-		516,013
Special Mention		-		-		10,607		-		-		168		-		-		10,775
Substandard		2,107		-		448		185		5,948		30		-		-		8,718
Total commercial real estate - investor		111,883		146,497		118,179		62,544		50,592		43,114		2,697		-		535,506

Commercial real estate - Owner occupied
Pass		85,407		67,186		42,218		41,444		38,798		45,990		2,179		-		323,222
Special Mention		-		-		-		-		215		-		-		-		215
Substandard		-		3,493		1,686		-		1,008		1,024		-		-		7,211
Total commercial real estate - owner occupied		85,407		70,679		43,904		41,444		40,021		47,014		2,179		-		330,648

Construction
Pass		30,362		44,396		16,992		1,671		514		1,258		7,511		-		102,704
Special Mention		-		-		1,088		-		-		-		-		-		1,088
Substandard		174		-		2,784		1,940		-		-		-		-		4,898
Total construction		30,536		44,396		20,864		3,611		514		1,258		7,511		-		108,690

Residential real estate - Investor
Pass		1,877		6,148		10,909		6,383		6,867		10,229		1,930		-		44,343
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		156		388		610		-		-		1,154
Total residential real estate - investor		1,877		6,148		10,909		6,539		7,255		10,839		1,930		-		45,497

Residential real estate - Owner occupied
Pass		16,322		16,625		19,433		6,892		11,045		30,816		2,022		-		103,155
Special Mention		253		-		-		-		-		-		-		427		680
Substandard		64		46		-		399		178		3,821		-		-		4,508
Total residential real estate - owner occupied		16,639		16,671		19,433		7,291		11,223		34,637		2,022		427		108,343

Multifamily
Pass		20,071		29,014		28,374		45,325		21,745		6,362		69		-		150,960
Special Mention		-		-		6,901		610		-		-		-		-		7,511

Substandard		-		-		-		1,580		747		-		-		-		2,327
Total multifamily		20,071		29,014		35,275		47,515		22,492		6,362		69		-		160,798

HELOC
Pass		503		1,918		2,018		1,132		1,576		1,023		60,339		-		68,509
Special Mention		-		-		-		-		-		-		108		-		108
Substandard		-		28		-		30		34		259		683		-		1,034
Total HELOC		503		1,946		2,018		1,162		1,610		1,282		61,130		-		69,651

HELOC - Purchased
Pass		-		-		-		-		-		12,189		-		-		12,189
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		181		-		-		181
Total HELOC - purchased		-		-		-		-		-		12,370		-		-		12,370

Other
Pass		3,772		1,490		575		178		112		223		6,095		-		12,445
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		2		-		-		-		-		2
Total other		3,772		1,490		575		180		112		223		6,095		-		12,447

Total loans
Pass		391,749		384,983		290,395		187,140		131,225		155,778		269,043		59		1,810,372
Special Mention		540		357		18,773		610		215		168		1,557		427		22,647
Substandard		2,578		3,767		7,836		4,990		8,338		6,731		683		-		34,923
Total loans	$	394,867	$	389,107	$	317,004	$	192,740	$	139,778	$	162,677	$	271,283	$	486	$	1,867,942

Credit quality indicators by loan segment and loan origination date at December 31, 2020, were as follows:


															Revolving
															Loans
															Converted
													Revolving		To Term
	2020		2019		2018		2017		2016		Prior		Loans		Loans		Total
Commercial
Pass	$	101,796	$	42,294	$	14,519	$	6,265	$	1,825	$	1,691	$	230,388	$	-	$	398,778
Special Mention		5,130		425		68		-		3		-		76		-		5,702
Substandard		273		52		1,524		-		-		-		830		-		2,679
Total commercial		107,199		42,771		16,111		6,265		1,828		1,691		231,294		-		407,159

Leases
Pass		56,605		52,168		16,830		6,545		5,242		651		-		-		138,041
Special Mention		175		163		-		-		-		-		-		-		338
Substandard		-		1,434		798		59		450		481		-		-		3,222
Total leases		56,780		53,765		17,628		6,604		5,692		1,132		-		-		141,601

Commercial real estate - Investor
Pass		173,781		158,677		92,156		66,762		55,963		15,966		1,319		-		564,624
Special Mention		2,394		9,592		220		-		95		-		-		-		12,301
Substandard		2,709		1,126		71		-		340		871		-		-		5,117
Total commercial real estate - investor		178,884		169,395		92,447		66,762		56,398		16,837		1,319		-		582,042

Commercial real estate - Owner occupied
Pass		72,605		52,809		73,719		45,315		50,000		25,507		1,324		-		321,279

Special Mention		604		-		-		-		-		-		-		-		604
Substandard		1,564		2,154		1,780		1,664		501		3,524		-		-		11,187
Total commercial real estate - owner occupied		74,773		54,963		75,499		46,979		50,501		29,031		1,324		-		333,070

Construction
Pass		50,170		24,163		7,203		539		218		1,261		9,702		-		93,256
Special Mention		38		-		-		-		-		-		-		-		38
Substandard		-		3,135		2,057		-		-		-		-		-		5,192
Total construction		50,208		27,298		9,260		539		218		1,261		9,702		-		98,486

Residential real estate - Investor
Pass		9,371		14,194		8,522		7,775		2,431		11,184		1,144		-		54,621
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		349		-		610		-		91		466		-		-		1,516
Total residential real estate - investor		9,720		14,194		9,132		7,775		2,522		11,650		1,144		-		56,137

Residential real estate - Owner occupied
Pass		18,308		23,450		10,808		15,409		10,394		31,325		2,654		-		112,348
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		47		-		412		219		526		2,836		-		-		4,040
Total residential real estate - owner occupied		18,355		23,450		11,220		15,628		10,920		34,161		2,654		-		116,388

Multifamily
Pass		40,671		30,849		44,301		38,133		12,147		7,735		197		-		174,033
Special Mention		-		6,901		-		548		-		-		-		-		7,449
Substandard		69		-		4,254		927		118		2,190		-		-		7,558
Total multifamily		40,740		37,750		48,555		39,608		12,265		9,925		197		-		189,040

HELOC
Pass		2,511		2,174		1,679		2,120		504		803		69,483		-		79,274
Special Mention		-		-		-		-		-		-		94		-		94
Substandard		-		-		86		37		271		91		1,055		-		1,540
Total HELOC		2,511		2,174		1,765		2,157		775		894		70,632		-		80,908

HELOC - Purchased
Pass		-		-		-		-		-		19,487		-		-		19,487
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Total HELOC - purchased		-		-		-		-		-		19,487		-		-		19,487

Other
Pass		1,555		574		569		229		559		341		6,702		-		10,529
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		4		-		-		-		-		-		4
Total other		1,555		574		573		229		559		341		6,702		-		10,533

Total loans
Pass		527,373		401,352		270,306		189,092		139,283		115,951		322,913		-		1,966,270
Special Mention		8,341		17,081		288		548		98		-		170		-		26,526
Substandard		5,011		7,901		11,596		2,906		2,297		10,459		1,885		-		42,055
Total loans	$	540,725	$	426,334	$	282,190	$	192,546	$	141,678	$	126,410	$	324,968	$	-	$	2,034,851