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Loans | 12 Months Ended
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Dec. 31, 2021
Loans and Leases Receivable Disclosure [Abstract] |
Loans | (6.) LOANS The Company’s loan portfolio consisted of the following at December 31 (in thousands):
|  | Principal Amount Outstanding |  |  | Net Deferred Loan (Fees) Costs |  |  | Loans, Net |
2021 |  |  |  |  |  |  |  |  |
Commercial business |  | $ | 639,368 |  |  | $ | (1,075 | ) |  | $ | 638,293 |
Commercial mortgage |  |  | 1,415,486 |  |  |  | (2,698 | ) |  |  | 1,412,788 |
Residential real estate loans |  |  | 563,579 |  |  |  | 13,720 |  |  |  | 577,299 |
Residential real estate lines |  |  | 75,515 |  |  |  | 3,016 |  |  |  | 78,531 |
Consumer indirect |  |  | 923,052 |  |  |  | 34,996 |  |  |  | 958,048 |
Other consumer |  |  | 14,355 |  |  |  | 122 |  |  |  | 14,477 |
Total |  | $ | 3,631,355 |  |  | $ | 48,081 |  |  |  | 3,679,436 |
Allowance for credit losses - loans |  |  |  |  |  |  |  |  | (39,676 | )
Total loans, net |  |  |  |  |  |  |  | $ | 3,639,760 |
2020 |  |  |  |  |  |  |  |  |
Commercial business |  | $ | 798,409 |  |  | $ | (4,261 | ) |  | $ | 794,148 |
Commercial mortgage |  |  | 1,256,525 |  |  |  | (2,624 | ) |  |  | 1,253,901 |
Residential real estate loans |  |  | 586,537 |  |  |  | 13,263 |  |  |  | 599,800 |
Residential real estate lines |  |  | 86,708 |  |  |  | 3,097 |  |  |  | 89,805 |
Consumer indirect |  |  | 812,816 |  |  |  | 27,605 |  |  |  | 840,421 |
Other consumer |  |  | 16,913 |  |  |  | 150 |  |  |  | 17,063 |
Total |  | $ | 3,557,908 |  |  | $ | 37,230 |  |  |  | 3,595,138 |
Allowance for credit losses - loans |  |  |  |  |  |  |  |  | (52,420 | )
Total loans, net |  |  |  |  |  |  |  | $ | 3,542,718 |
(6.) LOANS (Continued) The CARES Act was passed by Congress and signed into law on March 27, 2020. The CARES Act established the PPP, an expansion of the SBA’s 7(a) loan program and the EIDL, administered directly by the SBA. The Company had $57.5 million and $253.1 million of PPP loans, principal amount outstanding (included in Commercial business above) as of December 31, 2021 and 2020, respectively. In addition, the CARES Act provides that a financial institution may elect to suspend (1) the application of GAAP for certain loan modifications related to COVID-19 that would otherwise be categorized as a TDR and (2) any determination that such loan modifications would be considered a TDR, including the related impairment for accounting purposes. Accordingly, the Company had $532.4 million of loans with modifications related to COVID-19 during 2020, with $46.2 million and $113.0 million still on deferral as of December 31, 2021 and 2020, respectively. The Company elected to exclude AIR from the amortized cost basis of loans disclosed throughout this footnote. As of December 31, 2021 and December 31, 2020, AIR for loans totaled $12.7 million and $13.6 million, respectively, and is included in other assets on the Company’s consolidated statements of financial condition. The Company’s significant concentrations of credit risk in the loan portfolio relate to a geographic concentration in the communities that the Company serves. Certain executive officers, directors and their business interests are customers of the Company. Transactions with these parties are based on the same terms as similar transactions with unrelated third parties and do not carry more than normal credit risk. Borrowings by these related parties amounted to $44.7 million and $32.8 million at December 31, 2021 and 2020, respectively. During 2021, new borrowings amounted to $19.0 million (including borrowings of executive officers and directors that were outstanding at the time of their appointment), and repayments and other reductions were $7.1 million. Past Due Loans Aging The Company’s recorded investment, by loan class, in current and nonaccrual loans, as well as an analysis of accruing delinquent loans is set forth as of December 31 (in thousands):
|  | 30-59 Days Past Due |  |  | 60-89 Days Past Due |  |  | Greater Than 90 Days |  |  | Total Past Due |  |  | Nonaccrual |  |  | Current |  |  | Total Loans |  |  | Nonaccrual with no allowance |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial business |  | $ | 659 |  |  | $ | 34 |  |  | $ | 797 |  |  | $ | 1,490 |  |  | $ | 602 |  |  | $ | 637,276 |  |  | $ | 639,368 |  |  | $ | 477 |
Commercial mortgage |  |  | 69 |  |  |  | - |  |  |  | - |  |  |  | 69 |  |  |  | 6,414 |  |  |  | 1,409,003 |  |  |  | 1,415,486 |  |  |  | 781 |
Residential real estate loans |  |  | 1,148 |  |  |  | 141 |  |  |  | - |  |  |  | 1,289 |  |  |  | 2,373 |  |  |  | 559,917 |  |  |  | 563,579 |  |  |  | 2,373 |
Residential real estate lines |  |  | 18 |  |  |  | 3 |  |  |  | - |  |  |  | 21 |  |  |  | 200 |  |  |  | 75,294 |  |  |  | 75,515 |  |  |  | 200 |
Consumer indirect |  |  | 5,706 |  |  |  | 770 |  |  |  | - |  |  |  | 6,476 |  |  |  | 1,780 |  |  |  | 914,796 |  |  |  | 923,052 |  |  |  | 1,780 |
Other consumer |  |  | 121 |  |  |  | 1 |  |  |  | - |  |  |  | 122 |  |  |  | - |  |  |  | 14,233 |  |  |  | 14,355 |  |  |  | - |
Total loans, gross |  | $ | 7,721 |  |  | $ | 949 |  |  | $ | 797 |  |  | $ | 9,467 |  |  | $ | 11,369 |  |  | $ | 3,610,519 |  |  | $ | 3,631,355 |  |  | $ | 5,611 |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial business |  | $ | 264 |  |  | $ | 87 |  |  | $ | - |  |  | $ | 351 |  |  | $ | 1,975 |  |  | $ | 796,083 |  |  | $ | 798,409 |  |  | $ | 1,502 |
Commercial mortgage |  |  | 822 |  |  |  | 26 |  |  |  | - |  |  |  | 848 |  |  |  | 2,906 |  |  |  | 1,252,771 |  |  |  | 1,256,525 |  |  |  | 2,709 |
Residential real estate loans |  |  | 984 |  |  |  | 60 |  |  |  | - |  |  |  | 1,044 |  |  |  | 2,587 |  |  |  | 582,906 |  |  |  | 586,537 |  |  |  | 2,587 |
Residential real estate lines |  |  | 40 |  |  |  | 15 |  |  |  | - |  |  |  | 55 |  |  |  | 323 |  |  |  | 86,330 |  |  |  | 86,708 |  |  |  | 323 |
Consumer indirect |  |  | 3,966 |  |  |  | 1,348 |  |  |  | - |  |  |  | 5,314 |  |  |  | 1,495 |  |  |  | 806,007 |  |  |  | 812,816 |  |  |  | 1,495 |
Other consumer |  |  | 133 |  |  |  | 18 |  |  |  | 231 |  |  |  | 382 |  |  |  | - |  |  |  | 16,531 |  |  |  | 16,913 |  |  |  | - |
Total loans, gross |  | $ | 6,209 |  |  | $ | 1,554 |  |  | $ | 231 |  |  | $ | 7,994 |  |  | $ | 9,286 |  |  | $ | 3,540,628 |  |  | $ | 3,557,908 |  |  | $ | 8,616 |
The Company had $797 thousand of PPP loans greater than 90 days past due and still accruing interest (included in Commercial business above) as of December 31, 2021. Repayment of PPP loans is guaranteed by the SBA. There were no loans past due greater than 90 days and still accruing interest as of December 31, 2020. There was less than one thousand dollars and $231 thousand in consumer overdrafts which were past due greater than 90 days as of December 31, 2021 and 2020, respectively. Consumer overdrafts are overdrawn deposit accounts which have been reclassified as loans but by their terms do not accrue interest. (6.) LOANS (Continued) Interest income on nonaccrual loans, if recognized, is recorded using the cash basis method of accounting. There was no interest income recognized on nonaccrual loans during the years ended December 31, 2021, 2020 and 2019. For the years ended December 31, 2021, 2020 and 2019, estimated interest income of $211 thousand, $430 thousand, and $508 thousand, respectively, would have been recorded if all such loans had been accruing interest according to their original contractual terms. Troubled Debt Restructurings A modification of a loan constitutes a troubled debt restructuring (“TDR”) when a borrower is experiencing financial difficulty and the modification constitutes a concession. Commercial loans modified in a TDR may involve temporary interest-only payments, term extensions, reducing the interest rate for the remaining term of the loan, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, collateral concessions, forgiveness of principal, forbearance agreements, or substituting or adding a new borrower or guarantor. There were no loans modified as a TDR during the years ended December 31, 2021 and 2020. There were no loans modified as a TDR during the years ended December 31, 2021 and 2020 that defaulted during the year ended December 31, 2021. For purposes of this disclosure, a loan modified as a TDR is considered to have defaulted when the borrower becomes 90 days past due. Collateral Dependent Loans Management has determined that specific commercial loans on nonaccrual status, all loans that have had their terms restructured in a troubled debt restructuring and other loans deemed appropriate by management where repayment is expected to be provided substantially through the operation or sale of the collateral to be collateral dependent loans. Collateral dependent loans at December 31, 2021 and 2020 included certain criticized COVID-19 bridge loans not otherwise classified as nonaccrual. The amortized cost basis of collateral dependent loans categorized by collateral type are set forth as of the dates indicated (in thousands):
|  | Collateral Type |  |  |  |  |  |  |
|  | Business Assets |  |  | Real Property |  |  | Total |  |  | Specific Reserve |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Commercial business |  | $ | 326 |  |  | $ | 993 |  |  | $ | 1,319 |  |  | $ | 1,055 |
Commercial mortgage |  |  | - |  |  |  | 37,936 |  |  |  | 37,936 |  |  |  | 4,716 |
Total |  | $ | 326 |  |  | $ | 38,929 |  |  | $ | 39,255 |  |  | $ | 5,771 |
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |
Commercial business |  | $ | 2,379 |  |  | $ | - |  |  | $ | 2,379 |  |  | $ | 1,383 |
Commercial mortgage |  |  | - |  |  |  | 36,625 |  |  |  | 36,625 |  |  |  | 8,187 |
Total |  | $ | 2,379 |  |  | $ | 36,625 |  |  | $ | 39,004 |  |  | $ | 9,570 |
(6.) LOANS (Continued) 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 such as the fair value of collateral. The Company analyzes commercial business and commercial mortgage loans individually by classifying the loans as to credit risk. Risk ratings are updated any time the situation warrants. 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 Company’s credit position at some future date. 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 Company 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. Loans that do not meet the criteria above that are analyzed individually as part of the process described above are considered “uncriticized” or pass-rated loans and are included in groups of homogeneous loans with similar risk and loss characteristics. (6.) LOANS (Continued) The following tables sets forth the Company’s commercial loan portfolio, categorized by internally assigned asset classification, as of the dates indicated (in thousands):
|  | Term Loans Amortized Cost Basis by Origination Year |  |  |  |  |  |  |  |  |  |
|  | 2021 |  |  | 2020 |  |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | Prior |  |  | Revolving Loans Amortized Cost Basis |  |  | Revolving Loans Converted to Term |  |  | Total |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Business |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Uncriticized |  | $ | 141,925 |  |  | $ | 91,338 |  |  | $ | 68,433 |  |  | $ | 42,631 |  |  | $ | 24,847 |  |  | $ | 12,033 |  |  | $ | 248,338 |  |  | $ | - |  |  | $ | 629,545 |
Special mention |  |  | - |  |  |  | 132 |  |  |  | 166 |  |  |  | 44 |  |  |  | 180 |  |  |  | 1,344 |  |  |  | 1,993 |  |  |  | - |  |  |  | 3,859 |
Substandard |  |  | 45 |  |  |  | 256 |  |  |  | 169 |  |  |  | 745 |  |  |  | 415 |  |  |  | 49 |  |  |  | 3,210 |  |  |  | - |  |  |  | 4,889 |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total |  | $ | 141,970 |  |  | $ | 91,726 |  |  | $ | 68,768 |  |  | $ | 43,420 |  |  | $ | 25,442 |  |  | $ | 13,426 |  |  | $ | 253,541 |  |  | $ | - |  |  | $ | 638,293 |
Commercial Mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Uncriticized |  | $ | 342,483 |  |  | $ | 339,988 |  |  | $ | 176,753 |  |  | $ | 147,247 |  |  | $ | 128,381 |  |  | $ | 167,739 |  |  | $ | 3,712 |  |  | $ | - |  |  | $ | 1,306,303 |
Special mention |  |  | 11,184 |  |  |  | 2,450 |  |  |  | 29,759 |  |  |  | 2,344 |  |  |  | 8,269 |  |  |  | 27,635 |  |  |  | - |  |  |  | - |  |  |  | 81,641 |
Substandard |  |  | 1,001 |  |  |  | 77 |  |  |  | 2,950 |  |  |  | 11,607 |  |  |  | 3,209 |  |  |  | 6,000 |  |  |  | - |  |  |  | - |  |  |  | 24,844 |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total |  | $ | 354,668 |  |  | $ | 342,515 |  |  | $ | 209,462 |  |  | $ | 161,198 |  |  | $ | 139,859 |  |  | $ | 201,374 |  |  | $ | 3,712 |  |  | $ | - |  |  | $ | 1,412,788 |
|  | Term Loans Amortized Cost Basis by Origination Year |  |  |  |  |  |  |  |  |  |
|  | 2020 |  |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2016 |  |  | Prior |  |  | Revolving Loans Amortized Cost Basis |  |  | Revolving Loans Converted to Term |  |  | Total |
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Business |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Uncriticized |  | $ | 350,992 |  |  | $ | 112,469 |  |  | $ | 82,029 |  |  | $ | 31,990 |  |  | $ | 8,195 |  |  | $ | 16,600 |  |  | $ | 179,770 |  |  | $ | - |  |  | $ | 782,045 |
Special mention |  |  | - |  |  |  | 360 |  |  |  | 21 |  |  |  | 709 |  |  |  | 41 |  |  |  | 1,025 |  |  |  | 2,995 |  |  |  | - |  |  |  | 5,151 |
Substandard |  |  | 193 |  |  |  | 211 |  |  |  | 1,183 |  |  |  | 464 |  |  |  | 202 |  |  |  | 309 |  |  |  | 4,390 |  |  |  | - |  |  |  | 6,952 |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total |  | $ | 351,185 |  |  | $ | 113,040 |  |  | $ | 83,233 |  |  | $ | 33,163 |  |  | $ | 8,438 |  |  | $ | 17,934 |  |  | $ | 187,155 |  |  | $ | - |  |  | $ | 794,148 |
Commercial Mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Uncriticized |  | $ | 310,364 |  |  | $ | 227,406 |  |  | $ | 163,839 |  |  | $ | 161,771 |  |  | $ | 74,915 |  |  | $ | 154,399 |  |  | $ | 731 |  |  | $ | - |  |  | $ | 1,093,425 |
Special mention |  |  | 14,299 |  |  |  | 42,305 |  |  |  | 19,505 |  |  |  | 27,530 |  |  |  | 12,256 |  |  |  | 28,744 |  |  |  | 43 |  |  |  | - |  |  |  | 144,682 |
Substandard |  |  | 189 |  |  |  | 2,521 |  |  |  | 1,890 |  |  |  | 1,648 |  |  |  | 3 |  |  |  | 9,344 |  |  |  | 199 |  |  |  | - |  |  |  | 15,794 |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total |  | $ | 324,852 |  |  | $ | 272,232 |  |  | $ | 185,234 |  |  | $ | 190,949 |  |  | $ | 87,174 |  |  | $ | 192,487 |  |  | $ | 973 |  |  | $ | - |  |  | $ | 1,253,901 |
(6.) LOANS (Continued) The Company utilizes payment status as a means of identifying and reporting problem and potential problem retail loans. The Company considers nonaccrual loans and loans past due greater than 90 days and still accruing interest to be non-performing. The following tables sets forth the Company’s retail loan portfolio, categorized by payment status, as of the dates indicated (in thousands):
|  | Term Loans Amortized Cost Basis by Origination Year |  |  |  |  |  |  |  |  |  |
|  | 2021 |  |  | 2020 |  |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | Prior |  |  | Revolving Loans Amortized Cost Basis |  |  | Revolving Loans Converted to Term |  |  | Total |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential Real Estate Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 92,620 |  |  | $ | 129,240 |  |  | $ | 85,876 |  |  | $ | 65,866 |  |  | $ | 50,932 |  |  | $ | 150,392 |  |  | $ | - |  |  | $ | - |  |  | $ | 574,926 |
Nonperforming |  |  | 79 |  |  |  | 55 |  |  |  | 225 |  |  |  | 557 |  |  |  | 899 |  |  |  | 558 |  |  |  | - |  |  |  | - |  |  |  | 2,373 |
Total |  | $ | 92,699 |  |  | $ | 129,295 |  |  | $ | 86,101 |  |  | $ | 66,423 |  |  | $ | 51,831 |  |  | $ | 150,950 |  |  | $ | - |  |  | $ | - |  |  | $ | 577,299 |
Residential Real Estate Lines |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 70,521 |  |  | $ | 7,810 |  |  | $ | 78,331 |
Nonperforming |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 39 |  |  |  | 161 |  |  |  | 200 |
Total |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 70,560 |  |  | $ | 7,971 |  |  | $ | 78,531 |
Consumer Indirect |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 452,601 |  |  | $ | 206,472 |  |  | $ | 122,849 |  |  | $ | 90,998 |  |  | $ | 51,598 |  |  | $ | 31,750 |  |  | $ | - |  |  | $ | - |  |  | $ | 956,268 |
Nonperforming |  |  | 417 |  |  |  | 515 |  |  |  | 436 |  |  |  | 230 |  |  |  | 136 |  |  |  | 46 |  |  |  | - |  |  |  | - |  |  |  | 1,780 |
Total |  | $ | 453,018 |  |  | $ | 206,987 |  |  | $ | 123,285 |  |  | $ | 91,228 |  |  | $ | 51,734 |  |  | $ | 31,796 |  |  | $ | - |  |  | $ | - |  |  | $ | 958,048 |
Other Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 4,422 |  |  | $ | 3,738 |  |  | $ | 1,681 |  |  | $ | 763 |  |  | $ | 280 |  |  | $ | 1,044 |  |  | $ | 2,549 |  |  | $ | - |  |  | $ | 14,477 |
Nonperforming |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total |  | $ | 4,422 |  |  | $ | 3,738 |  |  | $ | 1,681 |  |  | $ | 763 |  |  | $ | 280 |  |  | $ | 1,044 |  |  | $ | 2,549 |  |  | $ | - |  |  | $ | 14,477 |
|  | Term Loans Amortized Cost Basis by Origination Year |  |  |  |  |  |  |  |  |  |
|  | 2020 |  |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2016 |  |  | Prior |  |  | Revolving Loans Amortized Cost Basis |  |  | Revolving Loans Converted to Term |  |  | Total |
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential Real Estate Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 137,926 |  |  | $ | 103,923 |  |  | $ | 87,153 |  |  | $ | 66,446 |  |  | $ | 67,473 |  |  | $ | 134,292 |  |  | $ | - |  |  | $ | - |  |  | $ | 597,213 |
Nonperforming |  |  | - |  |  |  | 199 |  |  |  | 765 |  |  |  | 665 |  |  |  | 233 |  |  |  | 725 |  |  |  | - |  |  |  | - |  |  |  | 2,587 |
Total |  | $ | 137,926 |  |  | $ | 104,122 |  |  | $ | 87,918 |  |  | $ | 67,111 |  |  | $ | 67,706 |  |  | $ | 135,017 |  |  | $ | - |  |  | $ | - |  |  | $ | 599,800 |
Residential Real Estate Lines |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 79,257 |  |  | $ | 10,225 |  |  | $ | 89,482 |
Nonperforming |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 65 |  |  |  | 258 |  |  |  | 323 |
Total |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 79,322 |  |  | $ | 10,483 |  |  | $ | 89,805 |
Consumer Indirect |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 295,216 |  |  | $ | 202,187 |  |  | $ | 166,773 |  |  | $ | 111,008 |  |  | $ | 47,793 |  |  | $ | 15,949 |  |  | $ | - |  |  | $ | - |  |  | $ | 838,926 |
Nonperforming |  |  | 70 |  |  |  | 652 |  |  |  | 319 |  |  |  | 287 |  |  |  | 132 |  |  |  | 35 |  |  |  | - |  |  |  | - |  |  |  | 1,495 |
Total |  | $ | 295,286 |  |  | $ | 202,839 |  |  | $ | 167,092 |  |  | $ | 111,295 |  |  | $ | 47,925 |  |  | $ | 15,984 |  |  | $ | - |  |  | $ | - |  |  | $ | 840,421 |
Other Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 6,774 |  |  | $ | 3,177 |  |  | $ | 1,765 |  |  | $ | 907 |  |  | $ | 369 |  |  | $ | 508 |  |  | $ | 3,563 |  |  | $ | - |  |  | $ | 17,063 |
Nonperforming |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total |  | $ | 6,774 |  |  | $ | 3,177 |  |  | $ | 1,765 |  |  | $ | 907 |  |  | $ | 369 |  |  | $ | 508 |  |  | $ | 3,563 |  |  | $ | - |  |  | $ | 17,063 |
(6.) LOANS (Continued) Allowance for Credit Losses - Loans The following tables set forth the changes in the allowance for credit losses - loans for the years ended December 31 (in thousands):
|  | Commercial Business |  |  | Commercial Mortgage |  |  | Residential Real Estate Loans |  |  | Residential Real Estate Lines |  |  | Consumer Indirect |  |  | Other Consumer |  |  | Total |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses - loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  |  | 13,580 |  |  |  | 21,763 |  |  |  | 3,924 |  |  |  | 674 |  |  |  | 12,165 |  |  |  | 314 |  |  | $ | 52,420 |
Charge-offs |  |  | (669 | ) |  |  | (3,999 | ) |  |  | (148 | ) |  |  | (141 | ) |  |  | (7,236 | ) |  |  | (1,026 | ) |  |  | (13,219 | )
Recoveries |  |  | 881 |  |  |  | 185 |  |  |  | 92 |  |  |  | - |  |  |  | 5,980 |  |  |  | 321 |  |  |  | 7,459 |
Provision (benefit) |  |  | (2,693 | ) |  |  | (3,172 | ) |  |  | (2,264 | ) |  |  | (154 | ) |  |  | 702 |  |  |  | 597 |  |  |  | (6,984 | )
Ending balance |  | $ | 11,099 |  |  | $ | 14,777 |  |  | $ | 1,604 |  |  | $ | 379 |  |  | $ | 11,611 |  |  | $ | 206 |  |  | $ | 39,676 |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses - loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance, prior to adoption of ASC 326 |  | $ | 11,358 |  |  | $ | 5,681 |  |  | $ | 1,059 |  |  | $ | 118 |  |  | $ | 11,852 |  |  | $ | 414 |  |  | $ | 30,482 |
Impact of adopting ASC 326 |  |  | (246 | ) |  |  | 7,310 |  |  |  | 3,290 |  |  |  | 607 |  |  |  | (1,234 | ) |  |  | (133 | ) |  | $ | 9,594 |
Beginning balance, after adoption of ASC 326 |  |  | 11,112 |  |  |  | 12,991 |  |  |  | 4,349 |  |  |  | 725 |  |  |  | 10,618 |  |  |  | 281 |  |  |  | 40,076 |
Charge-offs |  |  | (9,093 | ) |  |  | (1,792 | ) |  |  | (100 | ) |  |  | - |  |  |  | (9,959 | ) |  |  | (681 | ) |  |  | (21,625 | )
Recoveries |  |  | 1,709 |  |  |  | 37 |  |  |  | 28 |  |  |  | 3 |  |  |  | 5,681 |  |  |  | 352 |  |  |  | 7,810 |
Provision (benefit) |  |  | 9,852 |  |  |  | 10,527 |  |  |  | (353 | ) |  |  | (54 | ) |  |  | 5,825 |  |  |  | 362 |  |  |  | 26,159 |
Ending balance |  | $ | 13,580 |  |  | $ | 21,763 |  |  | $ | 3,924 |  |  | $ | 674 |  |  | $ | 12,165 |  |  | $ | 314 |  |  | $ | 52,420 |
(6.) LOANS (Continued)
|  | Commercial Business |  |  | Commercial Mortgage |  |  | Residential Real Estate Loans |  |  | Residential Real Estate Lines |  |  | Consumer Indirect |  |  | Other Consumer |  |  | Total |
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 14,312 |  |  | $ | 5,219 |  |  | $ | 1,112 |  |  | $ | 210 |  |  | $ | 12,572 |  |  | $ | 489 |  |  |  | 33,914 |
Charge-offs |  |  | (2,481 | ) |  |  | (2,997 | ) |  |  | (340 | ) |  |  | (13 | ) |  |  | (10,810 | ) |  |  | (1,170 | ) |  |  | (17,811 | )
Recoveries |  |  | 492 |  |  |  | 17 |  |  |  | 43 |  |  |  | 6 |  |  |  | 5,390 |  |  |  | 387 |  |  |  | 6,335 |
Provision (benefit) |  |  | (965 | ) |  |  | 3,442 |  |  |  | 244 |  |  |  | (85 | ) |  |  | 4,700 |  |  |  | 708 |  |  |  | 8,044 |
Ending balance |  | $ | 11,358 |  |  | $ | 5,681 |  |  | $ | 1,059 |  |  | $ | 118 |  |  | $ | 11,852 |  |  | $ | 414 |  |  | $ | 30,482 |
Evaluated for impairment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually |  | $ | 214 |  |  | $ | 479 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 693 |
Collectively |  | $ | 11,144 |  |  | $ | 5,202 |  |  | $ | 1,059 |  |  | $ | 118 |  |  | $ | 11,852 |  |  | $ | 414 |  |  | $ | 29,789 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance |  | $ | 571,222 |  |  | $ | 1,108,315 |  |  | $ | 560,717 |  |  | $ | 101,048 |  |  | $ | 822,179 |  |  | $ | 15,984 |  |  | $ | 3,179,465 |
Evaluated for impairment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually |  | $ | 1,177 |  |  | $ | 3,146 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 4,323 |
Collectively |  | $ | 570,045 |  |  | $ | 1,105,169 |  |  | $ | 560,717 |  |  | $ | 101,048 |  |  | $ | 822,179 |  |  | $ | 15,984 |  |  | $ | 3,175,142 |
Risk Characteristics Commercial business loans primarily consist of loans to small to mid-sized businesses in our market area in a diverse range of industries. These loans are of higher risk and typically are made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business. Further, the collateral securing the loans may depreciate over time, may be difficult to appraise and may fluctuate in value. The credit risk related to commercial loans is largely influenced by general economic conditions, including the impact of the COVID-19 pandemic on small to mid-sized business in our market area, inflation and the resulting impact on a borrower’s operations or on the value of underlying collateral, if any. Commercial mortgage loans generally have larger balances and involve a greater degree of risk than residential mortgage loans, potentially resulting in higher potential losses on an individual customer basis. Loan repayment is often dependent on the successful operation and management of the properties, as well as on the collateral securing the loan. Economic events, including the impact of the COVID-19 pandemic on the ability of the tenants to pay rent at these properties, inflation or conditions in the real estate market could have an adverse impact on the cash flows generated by properties securing the Company’s commercial real estate loans and on the value of such properties. Residential real estate loans (comprised of conventional mortgages and home equity loans) and residential real estate lines (comprised of home equity lines) are generally made based on the borrower’s ability to make repayment from his or her employment and other income but are secured by real property whose value tends to be more easily ascertainable. Credit risk for these types of loans is generally influenced by general economic conditions, including the impact of the COVID-19 pandemic on the employment income of these borrowers, inflation, the characteristics of individual borrowers, and the nature of the loan collateral. Consumer indirect and other consumer loans may entail greater credit risk than residential mortgage loans and home equities, particularly in the case of other consumer loans which are unsecured or, in the case of indirect consumer loans, secured by depreciable assets, such as automobiles. In such cases, any repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance. In addition, consumer loan collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be affected by adverse personal circumstances such as job loss, illness or personal bankruptcy, including the heightened risk that such circumstances may arise as a result of the COVID-19 pandemic including inflation. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans.

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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 http://asc.fasb.org/subtopic&trid=2196772 + Details
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