

	March 31, 2019				December 31, 2018				March 31, 2018
Commercial
Real estate	$	357,760,000	28.3	%	$	353,243,000	28.5	%	$	339,306,000	28.6	%
Construction	34,231,000		2.7	%	27,304,000		2.2	%	43,813,000		3.7	%
Other	205,462,000		16.2	%	196,391,000		15.9	%	177,783,000		15.0	%
Municipal	54,246,000		4.3	%	51,128,000		4.1	%	35,463,000		3.0	%
Residential
Term	474,241,000		37.5	%	469,145,000		37.9	%	439,984,000		37.0	%
Construction	18,450,000		1.5	%	17,743,000		1.4	%	15,847,000		1.3	%
Home equity line of credit	95,692,000		7.6	%	98,469,000		8.0	%	110,298,000		9.3	%
Consumer	24,557,000		1.9	%	24,860,000		2.0	%	25,508,000		2.1	%
Total	$	1,264,639,000	100.0	%	$	1,238,283,000	100.0	%	$	1,188,002,000	100.0	%

Loan balances include net deferred loan costs of $6,878,000 as of March 31, 2019, $6,615,000 as of December 31, 2018, and $5,990,000 as of March 31, 2018. Pursuant to collateral agreements, qualifying first mortgage loans and commercial real estate loans, which totaled $321,290,000 at March 31, 2019, were used to collateralize borrowings from the FHLB. This compares to qualifying first mortgages loans which totaled $290,138,000 at December 31, 2018, and $237,239,000 at March 31, 2018. In addition, commercial, construction and home equity loans totaling $251,591,000 at March 31, 2019, $237,152,000 at December 31, 2018, and $255,020,000 at March 31, 2018, were used to collateralize a standby line of credit at the Federal Reserve Bank of Boston that is currently unused.



	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		All Past Due		Current		Total		90+ Days & Accruing
Commercial
Real estate	$	282,000	$	825,000	$	621,000	$	1,728,000	$	356,032,000	$	357,760,000	$	—
Construction	47,000		—		286,000		333,000		33,898,000		34,231,000		—
Other	664,000		63,000		303,000		1,030,000		204,432,000		205,462,000		—
Municipal	—		—		—		—		54,246,000		54,246,000		—
Residential
Term	2,659,000		1,153,000		1,434,000		5,246,000		468,995,000		474,241,000		—
Construction	—		—		—		—		18,450,000		18,450,000		—
Home equity line of credit	1,985,000		11,000		369,000		2,365,000		93,327,000		95,692,000		—
Consumer	411,000		163,000		4,000		578,000		23,979,000		24,557,000		4,000
Total	$	6,048,000	$	2,215,000	$	3,017,000	$	11,280,000	$	1,253,359,000	$	1,264,639,000	$	4,000

Information on the past-due status of loans by class of financing receivable as of December 31, 2018, is presented in the following table:



	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		All Past Due		Current		Total		90+ Days & Accruing
Commercial
Real estate	$	1,274,000	$	—	$	777,000	$	2,051,000	$	351,192,000	$	353,243,000	$	—
Construction	—		10,000		—		10,000		27,294,000		27,304,000		—
Other	455,000		5,000		120,000		580,000		195,811,000		196,391,000		—
Municipal	—		—		—		—		51,128,000		51,128,000		—
Residential
Term	1,097,000		3,518,000		2,023,000		6,638,000		462,507,000		469,145,000		339,000
Construction	76,000		—		—		76,000		17,667,000		17,743,000		—
Home equity line of credit	2,819,000		419,000		493,000		3,731,000		94,738,000		98,469,000		—
Consumer	237,000		25,000		27,000		289,000		24,571,000		24,860,000		12,000
Total	$	5,958,000	$	3,977,000	$	3,440,000	$	13,375,000	$	1,224,908,000	$	1,238,283,000	$	351,000



	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		All Past Due		Current		Total		90+ Days & Accruing
Commercial
Real estate	$	963,000	$	17,000	$	202,000	$	1,182,000	$	338,124,000	$	339,306,000	$	—
Construction	347,000		—		—		347,000		43,466,000		43,813,000		—
Other	6,887,000		52,000		294,000		7,233,000		170,550,000		177,783,000		—
Municipal	—		—		—		—		35,463,000		35,463,000		—
Residential
Term	3,175,000		345,000		1,880,000		5,400,000		434,584,000		439,984,000		—
Construction	—		—		—		—		15,847,000		15,847,000		—
Home equity line of credit	449,000		438,000		664,000		1,551,000		108,747,000		110,298,000		126,000
Consumer	119,000		8,000		27,000		154,000		25,354,000		25,508,000		11,000
Total	$	11,940,000	$	860,000	$	3,067,000	$	15,867,000	$	1,172,135,000	$	1,188,002,000	$	137,000

For all classes, loans are placed on non-accrual status when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement or when principal and interest is 90 days or more past due unless the loan is both well secured and in the process of collection (in which case the loan may continue to accrue interest in spite of its past due status). A loan is "well secured" if it is secured (1) by collateral in the form of liens on or pledges of real or personal property, including securities, that have a realizable value sufficient to discharge the debt (including accrued interest) in full, or (2) by the guarantee of a financially responsible party. A loan is "in the process of collection" if collection of the loan is proceeding in due course either (1) through legal action, including judgment enforcement procedures, or, (2) in appropriate circumstances, through collection efforts not involving legal action which are reasonably expected to result in repayment of the debt or in its restoration to a current status in the near future.

Cash payments received on non-accrual loans, which are included in impaired loans, are applied to reduce the loan's principal balance until the remaining principal balance is deemed collectible, after which interest is recognized when collected. As a general rule, a loan may be restored to accrual status when payments are current for a substantial period of time, generally six months, and repayment of the remaining contractual amounts is expected, or when it otherwise becomes well secured and in the process of collection. Information on nonaccrual loans as of March 31, 2019 and 2018 and at December 31, 2018 is presented in the following table:



	March 31, 2019		December 31, 2018		March 31, 2018
Commercial
Real estate	$	1,468,000	$	1,226,000	$	1,021,000
Construction	286,000		—		—
Other	7,067,000		8,664,000		8,895,000
Municipal	—		—		—
Residential
Term	4,211,000		4,062,000		3,654,000
Construction	—		—		—
Home equity line of credit	702,000		760,000		697,000
Consumer	2,000		15,000		16,000
Total	$	13,736,000	$	14,727,000	$	14,283,000

Impaired loans include troubled debt restructured ("TDR") and loans placed on non-accrual. These loans are measured at the present value of expected future cash flows discounted at the loan's effective interest rate or at the fair value of the collateral if the loan is collateral dependent. If the measure of an impaired loan is lower than the recorded investment in the loan and estimated selling costs, a specific reserve is established for the difference, or, in certain situations, if the measure of an impaired loan is lower than the recorded investment in the loan and estimated selling costs, the difference is written off.



							For the three months ended March 31, 2019
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Recognized Interest Income
With No Related Allowance
Commercial
Real estate	$	8,391,000	$	8,779,000	$	—	$	8,741,000	$	90,000
Construction	1,007,000		1,007,000		—		817,000		12,000
Other	709,000		734,000		—		1,207,000		6,000
Municipal	—		—		—		—		—
Residential
Term	8,926,000		10,345,000		—		9,007,000		68,000
Construction	—		—		—		—		—
Home equity line of credit	1,009,000		1,071,000		—		976,000		5,000
Consumer	—		—		—		—		—
	$	20,042,000	$	21,936,000	$	—	$	20,748,000	$	181,000
With an Allowance Recorded
Commercial
Real estate	$	1,566,000	$	1,583,000	$	233,000	$	1,215,000	$	26,000
Construction	—		—		—		—		—
Other	6,944,000		7,315,000		1,485,000		7,511,000		—
Municipal	—		—		—		—		—
Residential
Term	1,993,000		2,131,000		348,000		1,845,000		17,000
Construction	—		—		—		—		—
Home equity line of credit	21,000		25,000		7,000		29,000		—
Consumer	2,000		2,000		2,000		1,000		—
	$	10,526,000	$	11,056,000	$	2,075,000	$	10,601,000	$	43,000
Total
Commercial
Real estate	$	9,957,000	$	10,362,000	$	233,000	$	9,956,000	$	116,000
Construction	1,007,000		1,007,000		—		817,000		12,000
Other	7,653,000		8,049,000		1,485,000		8,718,000		6,000
Municipal	—		—		—		—		—
Residential
Term	10,919,000		12,476,000		348,000		10,852,000		85,000
Construction	—		—		—		—		—
Home equity line of credit	1,030,000		1,096,000		7,000		1,005,000		5,000
Consumer	2,000		2,000		2,000		1,000		—
	$	30,568,000	$	32,992,000	$	2,075,000	$	31,349,000	$	224,000



	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Recognized Interest Income
With No Related Allowance
Commercial
Real estate	$	8,718,000	$	9,161,000	$	—	$	5,536,000	$	380,000
Construction	721,000		721,000		—		762,000		43,000
Other	1,468,000		1,555,000		—		2,037,000		32,000
Municipal	—		—		—		—		—
Residential
Term	9,136,000		10,317,000		—		9,427,000		289,000
Construction	—		—		—		—		—
Home equity line of credit	972,000		1,035,000		—		1,001,000		20,000
Consumer	15,000		42,000		—		13,000		—
	$	21,030,000	$	22,831,000	$	—	$	18,776,000	$	764,000
With an Allowance Recorded
Commercial
Real estate	$	1,042,000	$	1,059,000	$	260,000	$	3,477,000	$	42,000
Construction	—		—		—		—		—
Other	7,791,000		8,216,000		1,696,000		7,471,000		5,000
Municipal	—		—		—		—		—
Residential
Term	1,768,000		1,998,000		335,000		1,982,000		53,000
Construction	—		—		—		—		—
Home equity line of credit	120,000		124,000		17,000		99,000		—
Consumer	—		—		—		—		—
	$	10,721,000	$	11,397,000	$	2,308,000	$	13,029,000	$	100,000
Total
Commercial
Real estate	$	9,760,000	$	10,220,000	$	260,000	$	9,013,000	$	422,000
Construction	721,000		721,000		—		762,000		43,000
Other	9,259,000		9,771,000		1,696,000		9,508,000		37,000
Municipal	—		—		—		—		—
Residential
Term	10,904,000		12,315,000		335,000		11,409,000		342,000
Construction	—		—		—		—		—
Home equity line of credit	1,092,000		1,159,000		17,000		1,100,000		20,000
Consumer	15,000		42,000		—		13,000		—
	$	31,751,000	$	34,228,000	$	2,308,000	$	31,805,000	$	864,000



							For the three months ended March 31, 2018
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Recognized Interest Income
With No Related Allowance
Commercial
Real estate	$	5,054,000	$	5,269,000	$	—	$	4,163,000	$	54,000
Construction	741,000		741,000		—		741,000		10,000
Other	2,281,000		2,360,000		—		2,302,000		6,000
Municipal	—		—		—		—		—
Residential
Term	9,594,000		10,733,000		—		9,700,000		71,000
Construction	—		—		—		—		—
Home equity line of credit	917,000		1,008,000		—		1,090,000		5,000
Consumer	16,000		29,000		—		16,000		—
	$	18,603,000	$	20,140,000	$	—	$	18,012,000	$	146,000
With an Allowance Recorded
Commercial
Real estate	$	3,897,000	$	4,002,000	$	254,000	$	3,889,000	$	39,000
Construction	—		—		—		—		—
Other	7,159,000		7,324,000		1,664,000		7,182,000		—
Municipal	—		—		—		—		—
Residential
Term	1,934,000		2,146,000		272,000		1,968,000		24,000
Construction	—		—		—		—		—
Home equity line of credit	122,000		125,000		16,000		70,000		—
Consumer	—		—		—		—		—
	$	13,112,000	$	13,597,000	$	2,206,000	$	13,109,000	$	63,000
Total
Commercial
Real estate	$	8,951,000	$	9,271,000	$	254,000	$	8,052,000	$	93,000
Construction	741,000		741,000		—		741,000		10,000
Other	9,440,000		9,684,000		1,664,000		9,484,000		6,000
Municipal	—		—		—		—		—
Residential
Term	11,528,000		12,879,000		272,000		11,668,000		95,000
Construction	—		—		—		—		—
Home equity line of credit	1,039,000		1,133,000		16,000		1,160,000		5,000
Consumer	16,000		29,000		—		16,000		—
	$	31,715,000	$	33,737,000	$	2,206,000	$	31,121,000	$	209,000

As of March 31, 2019, the Company had 80 loans with a balance of $25,386,000 that have been classified as TDRs. This compares to 76 loans with a balance of $25,222,000 and 69 loans with a balance of $18,709,000 classified as TDRs as of December 31, 2018 and March 31, 2018, respectively. The impairment carried as a specific reserve in the allowance for loan losses is calculated by present valuing the expected cash flows on the loan at the original interest rate, or, for collateral-dependent loans, using the fair value of the collateral less costs to sell.



	Number of Loans	Balance		Specific Reserves
Commercial
Real estate	17	$	8,583,000	$	107,000
Construction	1	721,000		—
Other	10	7,257,000		1,275,000
Municipal	—	—		—
Residential
Term	49	8,331,000		225,000
Construction	—	—		—
Home equity line of credit	3	494,000		—
Consumer	—	—		—
	80	$	25,386,000	$	1,607,000



	Number of Loans	Balance		Specific Reserves
Commercial
Real estate	17	$	8,631,000	$	132,000
Construction	1	721,000		—
Other	10	7,298,000		1,276,000
Municipal	—	—		—
Residential
Term	45	8,074,000		160,000
Construction	—	—		—
Home equity line of credit	3	498,000		—
Consumer	—	—		—
	76	$	25,222,000	$	1,568,000



	Number of Loans	Balance		Specific Reserves
Commercial
Real estate	15	$	8,030,000	$	132,000
Construction	1	741,000		—
Other	4	546,000		—
Municipal	—	—		—
Residential
Term	46	8,883,000		271,000
Construction	—	—		—
Home equity line of credit	3	509,000		—
Consumer	—	—		—
	69	$	18,709,000	$	403,000

As of March 31, 2019, 10 of the loans classified as TDRs with a total balance of $1,129,000 were more than 30 days past due. Of these loans, three had been placed on TDR status in the previous 12 months. The following table shows these TDRs by class and the associated specific reserves included in the allowance for loan losses as of March 31, 2019:

As of March 31, 2018, seven of the loans classified as TDRs with a total balance of $810,000 were more than 30 days past due. Of these loans, none had been placed on TDR status in the previous 12 months. The following table shows these TDRs by class and the associated specific reserves included in the allowance for loan losses as of March 31, 2018:



	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Specific Reserves
Commercial
Real estate	—	$	—	$	—	$	—
Construction	—	—		—		—
Other	—	—		—		—
Municipal	—	—		—		—
Residential
Term	5	573,000		554,000		74,000
Construction	—	—		—		—
Home equity line of credit	—	—		—		—
Consumer	—	—		—		—
	5	$	573,000	$	554,000	$	74,000



	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Specific Reserves
Commercial
Real estate	7	$	1,056,000	$	1,056,000	$	36,000
Construction	—	—		—		—
Other	—	—		—		—
Municipal	—	—		—		—
Residential
Term	—	—		—		—
Construction	—	—		—		—
Home equity line of credit	—	—		—		—
Consumer	—	—		—		—
	7	$	1,056,000	$	1,056,000	$	36,000

As of March 31, 2019, Management is aware of seven loans classified as TDRs that are involved in bankruptcy with an outstanding balance of $929,000. There were also 20 loans with an outstanding balance of $8,555,000 that were classified as TDRs and on non-accrual status, of which three loans with an outstanding balance of $398,000 were in the process of foreclosure.