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Allowance for Credit Losses

9 Months Ended

Sep. 30, 2023

Upon adoption of ASC 326, in the first quarter of 2023, the Company replaced the incurred loss model that recognized losses when it became probable that a credit loss would be incurred, with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased. The ACL is a valuation amount that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the allowance when they are deemed uncollectible. The ACL consists of three elements: (1) specific reserves for loans individually analyzed; (2) general reserves for each portfolio segment; and, (3) qualitative reserves. All outstanding loans are considered in evaluating the appropriateness of the allowance. Loans are segmented by common risk characteristics as delineated in the paragraph below. Prior to adoption of ASC 326, under the incurred loss methodology, the Company evaluated portfolio risk characteristics largely on loan purpose. The Company provides for loan losses through the allowance for credit losses which represents an estimated reserve for losses in the loan portfolio. To determine an appropriate level for general reserves, a discounted cash flow approach is applied to each portfolio segment implementing a probability of default and loss given default estimate based upon a number of factors including historical losses over an economic cycle, economic forecasts, loan prepayment speeds and curtailment rates. To determine an appropriate level for qualitative reserves, various factors are considered including underwriting policies, credit administration practices, experience, ability and depth of lending management, and economic factors not captured in the general reserve calculation. Adoption of ASC 326 added $6,210,000 to the Allowance for Credit Losses, recorded as a charge to retained earnings at January 1, 2023.

Loan Portfolio Composition & Risk Characteristics: The loan portfolio is segmented into ten classes and credit risk is evaluated separately in each class. Major risk characteristics relevant to each portfolio segment are as follows:

Commercial Real Estate Owner Occupied - commercial real estate owner occupied loans consist of mortgage loans to finance investments in real property such as retail space, offices, industrial buildings, hotels, educational facilities, and other specific or mixed use properties. Loans are typically written with amortizing payment structures. Collateral values are determined based on appraisals and evaluations in accordance with established policy and regulatory guidelines. Loans typically have a loan-to-value ratio of up to 80% based upon current valuation information at the time the loan is made, and are primarily paid by the cash flow generated from the real property, typically the operating entity of owner occupant. Risk factors typically include competitive market forces, net operating incomes of the operating entity, and overall economic demand. Loans in the recreational and tourism sector can be affected by weather conditions, such as unseasonably low winter snowfalls. Commercial real estate lending also carries a higher degree of environmental risk than other types of lending.

Commercial Real Estate Non-Owner Occupied - commercial real estate loans non-owner occupied share many of the purpose, loan structure and risk characteristics of owner-occupied commercial real estate. Repayment is generally reliant upon cash flow generated from tenants with risk factors also influenced by vacancy rates, cap rates, lease renewals, and underlying financial health of lessees.

Commercial Construction - commercial construction loans consist of loans to finance construction in a mix of owner- and non-owner occupied commercial real estate properties. Loans typically have construction periods of less than two years, and payment structures during the construction period are typically on an interest only basis, although principal payments may be established depending on the type of construction project being financed. During the construction phase, commercial construction loans are primarily paid by cash flow generated from the construction project or other operating cash flows from the borrower or guarantors, if applicable. Commercial construction loans will typically convert to permanent financing from the Company, or loan repayment may come from a third party source in the event that the Company will not be providing permanent term financing. Collateral valuation and loan-to-value guidelines follow those for commercial real estate loans. Commercial construction loans are impacted by factors similar to those for commercial real estate loans in addition to risks related to contractor financial capacity and ability to complete a project within acceptable time frames and within budget.

Commercial and Industry- C&I loans consist of revolving and term loan obligations extended to business and corporate enterprises for the purpose of financing working capital and or capital investment. C&I loans may be secured or unsecured; when secured, collateral generally consists of pledges of business assets including, but not limited to, accounts receivable, inventory, equipment, and/or other tangible and intangible assets. C&I loans are primarily paid by the operating cash flow of the borrower. A weakened economy, soft consumer spending, and the rising cost of labor or raw materials are examples of issues that can impact the credit quality in this segment.

Commercial Multifamily - multifamily loans share structure and risk characteristics with non-owner occupied commercial real estate; underlying collateral is residential in nature rather than commercial, consisting of properties with five or more units.

Municipal Loans - municipal loans are comprised of loans to municipalities in Maine for capitalized expenditures, construction projects, or tax anticipation notes. All municipal loans are considered either general obligations of the municipality collateralized by the taxing ability of the municipality for repayment of debt or have a pledge of specific revenues. The overall health of the economy, including unemployment rates and housing prices, has an impact on the credit quality of this segment.

Residential Real Estate Term - residential term loans consist of residential real estate loans held in the Company's loan portfolio made to borrowers who demonstrate the ability to make scheduled payments with full consideration to underwriting factors. Borrower qualifications include favorable credit history combined with supportive income requirements and loan-to-value ratios within established policy and regulatory guidelines. Collateral values are determined based on appraisals and evaluations in accordance with established policy and regulatory guidelines. Residential loans typically have a loan-to-value ratio of up to 80% based on appraisal information at the time the loan is made. Collateral consists of mortgage liens on one-to four-family residential properties. Loans are offered with fixed or adjustable rates with amortization terms of up to thirty years. The overall health of the economy, including unemployment rates and housing prices, has an impact on the credit quality of this segment.

Residential Real Estate Construction - residential construction loans typically consist of loans for the purpose of constructing single family residences to be owned and occupied by the borrower. Borrower qualifications include favorable credit history combined with supportive income requirements and loan-to-value ratios within established policy and regulatory guidelines. Residential construction loans normally have construction terms of one year or less and payment during the construction term is typically on an interest only basis from sources including interest reserves, borrower liquidity, and/or income. Residential construction loans will typically convert to permanent financing from the Company or have another financing commitment in place from an acceptable mortgage lender. Collateral valuation and loan-to-value guidelines are consistent with those for residential term loans. Residential construction loans are impacted by factors similar to those for residential real estate term loans in addition to risks related to contractor financial capacity and ability to complete a project within acceptable time frames and within budget.

Home Equity Revolving and Term - home equity revolving and term loans are made to qualified individuals and are secured by senior or junior mortgage liens on owner occupied one- to four-family homes, condominiums, or vacation homes. The home equity line of credit typically has a variable interest rate and is billed as interest-only payments during the draw period. At the end of the draw period, the home equity line of credit is billed as a percentage of the principal balance plus all accrued interest. Loan maturities are normally 300 months. Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan-to-value ratios usually not exceeding 80% inclusive of priority liens. Collateral valuation guidelines follow those for residential real estate loans. The overall health of the economy, including unemployment rates and housing prices, has an impact on the credit quality of this segment.

Consumer - consumer loans include personal lines of credit and amortizing loans made to qualified individuals for various purposes such as autos, recreational vehicles, debt consolidation, personal expenses, or overdraft protection. Borrower qualifications include favorable credit history combined with supportive income and collateral requirements within established policy guidelines. Consumer loans may be secured or unsecured. The overall health of the economy, including unemployment rates, has an impact on the credit quality of this segment.

Construction, land, and land development: CLLD loans, both commercial and residential, represented 37.3% of total Bank capital as of September 30, 2023 and remain below the regulatory guidance of 100.0% of total Bank capital. Construction loans and non-owner-occupied commercial real estate loans represented 215.5% of total Bank capital at September 30, 2023, below the regulatory guidance of 300.0% of total Bank capital.

Composition of the ACL: A breakdown of the allowance for credit losses as of September 30, 2023, by class of financing receivable and allowance element, is presented in the following table:


As of September 30, 2023	Specific Reserves on Loans Evaluated Individually		General Reserves on Loans Based on Historical Loss Experience		Reserves for Qualitative Factors		Total Reserves
Commercial
Real estate owner occupied	$	—	$	3,731,000	$	780,000	$	4,511,000
Real estate non-owner occupied	—		3,855,000		574,000		4,429,000
Construction	—		1,445,000		157,000		1,602,000
C&I	225,000		3,909,000		663,000		4,797,000
Multifamily	—		1,184,000		93,000		1,277,000
Municipal	—		332,000		44,000		376,000
Residential
Term	41,000		4,020,000		825,000		4,886,000
Construction	—		602,000		(26,000)		576,000
Home Equity
Revolving and term	—		442,000		175,000		617,000
Consumer	—		219,000		32,000		251,000

	$	266,000	$	19,739,000	$	3,317,000	$	23,322,000

A breakdown of the allowance for loan losses as of December 31, 2022 under the incurred loss method, by class of financing receivable and allowance element, is presented in the following table:


As of December 31, 2022	Specific Reserves on Loans Evaluated Individually for Impairment		General Reserves on Loans Based on Historical Loss Experience		Reserves for Qualitative Factors		Unallocated Reserves		Total Reserves
Commercial
Real estate	$	—	$	974,000	$	5,142,000	$	—	$	6,116,000
Construction	—		131,000		690,000		—		821,000
Other	298,000		446,000		2,353,000		—		3,097,000
Municipal	—		—		162,000		—		162,000
Residential
Term	100,000		83,000		2,376,000		—		2,559,000
Construction	—		7,000		192,000		—		199,000
Home equity line of credit	—		101,000		928,000		—		1,029,000
Consumer	—		286,000		776,000		—		1,062,000
Unallocated	—		—		—		1,678,000		1,678,000
	$	398,000	$	2,028,000	$	12,619,000	$	1,678,000	$	16,723,000

A breakdown of the allowance for loan losses as of September 30, 2022 under the incurred loss method, by class of financing receivable and allowance element, is presented in the following table:


As of September 30, 2022	Specific Reserves on Loans Evaluated Individually for Impairment		General Reserves on Loans Based on Historical Loss Experience		Reserves for Qualitative Factors		Unallocated Reserves		Total Reserves
Commercial
Real estate	$	—	$	867,000	$	4,708,000	$	—	$	5,575,000
Construction	6,000		173,000		942,000		—		1,121,000
Other	315,000		420,000		2,279,000		—		3,014,000
Municipal	—		—		160,000		—		160,000
Residential
Term	99,000		102,000		2,346,000		—		2,547,000
Construction	—		7,000		161,000		—		168,000
Home equity line of credit	—		106,000		887,000		—		993,000
Consumer	—		216,000		656,000		—		872,000
Unallocated	—		—		—		1,937,000		1,937,000
	$	420,000	$	1,891,000	$	12,139,000	$	1,937,000	$	16,387,000

The allowance for credit losses as a percent of total loans stood at 1.12% as of September 30, 2023, 0.87% at December 31, 2022 and 0.88% as of September 30, 2022.

Off-Balance Sheet Credit Exposures: In the ordinary course of business, the Company enters into commitments to extend credit, including commercial letters of credit and standby letters of credit. Such financial instruments are recorded as loans when they are funded.

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures: The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL on off-balance sheet credit exposures is adjusted through credit loss expense and any adjustment is recognized in net income. To appropriately measure expected credit losses, management disaggregates the loan portfolio into similar risk characteristics, identical to those determined for the loan portfolio. An estimated funding rate is then applied to the qualifying unfunded loan commitments and letters of credit using the Company’s own historical experience to estimate the expected funded amount for each loan segment as of the reporting date. Once the expected funded amount for each loan segment is determined, the loss rate, which is the calculated expected loan loss as a percent of the amortized cost basis for each loan segment, is applied to calculate the ACL on off-balance sheet credit exposures as of the reporting date. The Company’s allowance for credit losses on unfunded commitments is recognized as a liability, included within other liabilities on the consolidated balance sheet.

The following table presents the activity in the ACL for off-balance sheet credit exposures for the nine months ended September 30, 2023 :


Allowance for credit losses:
Beginning balance, prior to adoption of ASC 326	$	100,000
Impact of adopting ASC 326	1,297,000
Credit loss expense	89,000
Total ending allowance balance	$	1,486,000

Credit Quality Indicators: To monitor the credit quality of its loan portfolio, management applies an internal risk rating system to categorize commercial loan segments. Approximately 60% of commercial loan outstanding balances are subject to review and validation annually by an independent consulting firm. Additionally, commercial loan relationships with exposure greater than or equal to 750,000 are subject to review annually by the Company's internal credit review function.

The risk rating system has eight levels, defined as follows:

1 Strong

Credits rated "1" are characterized by borrowers fully responsible for the credit with excellent capacity to pay principal and interest. Loans rated "1" may be secured with acceptable forms of liquid collateral.

2 Above Average

Credits rated "2" are characterized by borrowers that have better than average liquidity, capitalization, earnings, and/or cash flow with a consistent record of solid financial performance.

3 Satisfactory

Credits rated "3" are characterized by borrowers with favorable liquidity, profitability, and financial condition with adequate cash flow to pay debt service.

4 Average

Credits rated "4" are characterized by borrowers that present risk more than 1, 2 and 3 rated loans and merit an ordinary level of ongoing monitoring. Financial condition is on par or somewhat below industry averages while cash flow is generally adequate to meet debt service requirements.

5 Watch

Credits rated "5" are characterized by borrowers that warrant greater monitoring due to financial condition or unresolved and identified risk factors.

6 Other Assets Especially Mentioned

Loans in this category are currently protected but are potentially weak and constitute an undue and unwarranted credit risk, but not to the point of justifying a classification of substandard. OAEM have potential weaknesses which may, if not checked or corrected, weaken the asset or inadequately protect the Company's credit position at some future date.

7 Substandard

Loans in this category are inadequately protected by the paying capacity of the borrower or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Substandard loans are characterized by the distinct possibility that the Company may sustain some loss if the deficiencies are not corrected.

8 Doubtful

Loans classified "Doubtful" have the same weaknesses as those classified 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. The possibility of loss is high, but because of certain important and reasonably specific pending factors which may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined.

Most residential real estate, home equity, and consumer loans are not assigned ratings; therefore they are categorized as performing and non-performing loans. Performing loans include loans that are current and loans that are past due less than 90 days. Loans that are past due more than 90 days are considered non-performing.

The following table summarizes the credit quality for the Company's portfolio by risk category of loans and by class by vintage as follows:


	Term Loans Amortized Cost Basis by Origination Year
Dollars in thousands	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of September 30, 2023
Commercial
Real estate owner occupied
Pass (risk rating 1-5)	$	43,022	$	75,590	$	41,851	$	28,387	$	35,696	$	65,064	$	9,355	$	175	$	299,140
Special Mention (risk rating 6)	—		—		—		—		—		—		—		—		—
Substandard (risk rating 7)	283		—		—		—		503		17		—		—		803
Doubtful (risk rating 8)	—		—		—		—		—		—		—		—		—
Total Real Estate Owner Occupied	43,305		75,590		41,851		28,387		36,199		65,081		9,355		175		299,943
Current period gross write-offs	—		—		—		—		—		40		—		—		40
Real estate non-owner occupied
Pass (risk rating 1-5)	27,875		71,474		130,132		49,160		27,670		85,559		5,092		—		396,962
Special Mention (risk rating 6)	—		—		—		—		—		—		—		—		—
Substandard (risk rating 7)	—		—		—		—		—		62		—		—		62
Doubtful (risk rating 8)	—		—		—		—		—		—		—		—		—
Total Real Estate Non-Owner Occupied	27,875		71,474		130,132		49,160		27,670		85,621		5,092		—		397,024
Current period gross write-offs	—		—		—		—		—		—		—		—		—
Construction
Pass (risk rating 1-5)	16,892		41,852		8,506		1,665		1,039		2,470		—		—		72,424
Special Mention (risk rating 6)	—		—		—		—		—		—		—		—		—
Substandard (risk rating 7)	—		—		—		—		—		—		—		—		—
Doubtful (risk rating 8)	—		—		—		—		—		—		—		—		—
Total Construction	16,892		41,852		8,506		1,665		1,039		2,470		—		—		72,424
Current period gross write-offs	—		—		—		—		—		—		—		—		—
C&I
Pass (risk rating 1-5)	43,648		66,873		53,712		37,052		6,526		38,003		90,748		11,937		348,499
Special Mention (risk rating 6)	—		129		268		—		—		8		400		—		805
Substandard (risk rating 7)	94		363		35		—		188		545		67		—		1,292
Doubtful (risk rating 8)	—		—		—		—		—		—		—		—		—
Total C&I	43,742		67,365		54,015		37,052		6,714		38,556		91,215		11,937		350,596
Current period gross write-offs	—		—		—		—		16		—		—		—		16
Multifamily
Pass (risk rating 1-5)	8,435		32,082		18,172		16,103		5,553		8,796		329		207		89,677
Special Mention (risk rating 6)	—		—		1,364		—		—		—		—		—		1,364
Substandard (risk rating 7)	—		—		—		—		—		—		—		—		—
Doubtful (risk rating 8)	—		—		—		—		—		—		—		—		—
Total Multifamily	8,435		32,082		19,536		16,103		5,553		8,796		329		207		91,041
Current period gross write-offs	—		—		—		—		—		—		—		—		—
Municipal
Pass (risk rating 1-5)	24,527		6,239		4,121		10,226		5,270		8,064		—		—		58,447
Special Mention (risk rating 6)	—		—		—		—		—		—		—		—		—
Substandard (risk rating 7)	—		—		—		—		—		—		—		—		—
Doubtful (risk rating 8)	—		—		—		—		—		—		—		—		—
Total Municipal	24,527		6,239		4,121		10,226		5,270		8,064		—		—		58,447
Current period gross write-offs	—		—		—		—		—		—		—		—		—



	Term Loans Amortized Cost Basis by Origination Year
Dollars in thousands	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of September 30, 2023
Residential
Term
Performing	47,019		149,470		143,048		97,350		40,621		179,788		1,301		132		658,729
Non-performing	—		304		—		81		340		595		—		—		1,320
Total Term	47,019		149,774		143,048		97,431		40,961		180,383		1,301		132		660,049
Current period gross write-offs	—		—		—		—		—		—		—		—		—
Construction
Performing	15,966		11,715		—		1,305		—		—		—		—		28,986
Non-performing	—		—		—		—		—		—		—		—		—
Total Construction	15,966		11,715		—		1,305		—		—		—		—		28,986
Current period gross write-offs	—		—		—		—		—		—		—		—		—
Home Equity Revolving and Term
Performing	8,154		9,472		2,073		1,214		609		1,754		67,639		10,575		101,490
Non-performing	—		—		—		—		—		115		198		177		490
Total Home Equity Revolving and Term	8,154		9,472		2,073		1,214		609		1,869		67,837		10,752		101,980
Current period gross write-offs	—		—		—		—		—		—		—		—		—
Consumer
Performing	3,072		2,338		1,296		1,951		538		4,404		5,771		—		19,370
Non-performing	—		—		—		—		—		—		—		—		—
Total Consumer	3,072		2,338		1,296		1,951		538		4,404		5,771		—		19,370
Current period gross write-offs	5		41		30		30		7		39		—		—		152
Total loans	$	238,987	$	467,901	$	404,578	$	244,494	$	124,553	$	395,244	$	180,900	$	23,203	$	2,079,860

Loss Recognition: Commercial loans are generally charged off when all or a portion of the principal amount is determined to be uncollectible. This determination is based on circumstances specific to a borrower including repayment ability, analysis of collateral, and other factors as applicable. Consumer loans greater than 120 days past due are generally charged off. Residential loans 90 days or more past due are placed on non-accrual status unless the loans are both well secured and in the process of collection. One- to four-family residential real estate loans and home equity loans are written down or charged-off no later than 180 days past due, or for residential real estate secured loans having a borrower in bankruptcy, within 60 days of receipt of notification of filing from the bankruptcy court, whichever is sooner. This is subject to completion of a current assessment of the value of the collateral with any outstanding loan balance in excess of the fair value of the property, less costs to sell, written down or charged-off.

The following table presents allowance for credit losses activity by class for the nine months and quarter ended September 30, 2023:


Dollars in thousands	Commercial										Municipal		Residential				Home Equity		Consumer		Unallocated		Total
	Real Estate Owner Occupied		Real Estate Non-Owner Occupied		Construction		C&I		Multifamily				Term		Construction		Revolving and term
For the nine months ended September 30, 2023
Beginning balance, prior to adoption of ASC 326	$	6,116	$	—	$	821	$	3,097	$	—	$	162	$	2,559	$	199	$	1,029	$	1,062	$	1,678	$	16,723
Charge offs	40		—		—		16		—		—		—		—		—		152		—		208
Recoveries	2		75		—		3		—		—		10		—		10		78		—		178
Provision (credit)	119		39		(162)		68		93		82		439		(358)		34		65		—		419
Impact of adopting ASC 326	(1,686)		4,315		943		1,645		1,184		132		1,878		735		(456)		(802)		(1,678)		6,210
Ending balance	$	4,511	$	4,429	$	1,602	$	4,797	$	1,277	$	376	$	4,886	$	576	$	617	$	251	$	—	$	23,322
For the three months ended September 30, 2023
Beginning balance	$	4,719	$	4,492	$	1,469	$	4,721	$	1,312	$	399	$	4,831	$	609	$	635	$	278	$	—	$	23,465
Charge offs	1		—		—		16		—		—		—		—		—		69		—		86
Recoveries	2		—		—		—		—		—		4		—		3		20		—		104
Provision (credit)	(209)		(63)		133		92		(35)		(23)		51		(33)		(21)		22		—		(161)
Ending balance	$	4,511	$	4,429	$	1,602	$	4,797	$	1,277	$	376	$	4,886	$	576	$	617	$	251	$	—	$	23,322

As of September 30, 2023, the significant model inputs and assumptions used within the discounted cash flow model for purposes of estimating the ACL on loans were:

Macroeconomic (loss) drivers: The following loss drivers for each loan segment were used to calculate the expected Probability of Default over the forecast and reversion period:

•Commercial Real Estate Owner Occupied: FOMC median forecasts of national unemployment and change in national GDP

•Commercial Real Estate Non-Owner Occupied: FOMC median forecasts of national unemployment and change in national GDP

•Commercial Construction: FOMC median forecasts of national unemployment and change in national GDP

•Commercial & Industrial: FOMC median forecasts of national unemployment and change in national GDP

•Commercial Multifamily: FOMC median forecast of national unemployment and Case-Shiller National Home Price Index

•Municipal: FOMC median forecasts of national unemployment and change in national GDP

•Residential Real Estate Term: FOMC median forecasts of national unemployment and change in national GDP

•Residential Real Estate Construction: FOMC median forecast of national unemployment

•Home Equity Revolving & Term: FOMC median forecasts of national unemployment and change in national GDP

•Consumer: FOMC median forecasts of national unemployment and change in national GDP

Reasonable and supportable forecast period: The ACL on loans estimate used a reasonable and supportable forecast period of one year.

Reversion period: The ACL on loans estimate used a reversion period of one year.

Prepayment speeds: The estimate of prepayment speed for each loan segment was derived using internally sourced prepayment data.

Qualitative factors: The ACL on loans estimate incorporated various qualitative factors into the calculation such as changes in lending policies, changes in the nature and volume and terms of loans, changes in the experience, depth and ability of lending management, and economic factors not captured in the quantitative model.

The following table presents allowance for loan losses activity by class for the year ended December 31, 2022:


Dollars in thousands	Commercial						Municipal		Residential				Home Equity Line of Credit		Consumer		Unallocated		Total
	Real Estate		Construction		Other				Term		Construction
For the year ended December 31, 2022
Beginning balance	$	5,367	$	746	$	2,830	$	157	$	2,733	$	148	$	925	$	833	$	1,782	$	15,521
Charge offs	—		—		309		—		8		—		29		412		—		758
Recoveries	20		—		13		—		29		—		4		144		—		210
Provision (credit)	729		75		563		5		(195)		51		129		497		(104)		1,750
Ending balance	$	6,116	$	821	$	3,097	$	162	$	2,559	$	199	$	1,029	$	1,062	$	1,678	$	16,723

The following table presents allowance for loan losses activity by class for the nine months and quarter ended September 30, 2022:


Dollars in thousands	Commercial						Municipal		Residential				Home Equity Line of Credit		Consumer		Unallocated		Total
	Real Estate		Construction		Other				Term		Construction
For the nine months ended September 30, 2022
Beginning balance	$	5,367	$	746	$	2,830	$	157	$	2,733	$	148	$	925	$	833	$	1,782	$	15,521
Charge offs	—		—		272		—		—		—		29		318		—		619
Recoveries	16		—		11		—		27		—		3		128		—		185
Provision (credit)	192		375		445		3		(213)		20		94		229		155		1,300
Ending balance	$	5,575	$	1,121	$	3,014	$	160	$	2,547	$	168	$	993	$	872	$	1,937	$	16,387
For the three months ended September 30, 2022
Beginning balance	$	5,480	$	1,151	$	2,948	$	157	$	2,592	$	191	$	966	$	866	$	1,850	$	16,201
Charge offs	—		—		229		—		—		—		—		31		—		260
Recoveries	(1)		—		9		—		16		—		2		20		—		46
Provision (credit)	96		(30)		286		3		(61)		(23)		25		17		87		400
Ending balance	$	5,575	$	1,121	$	3,014	$	160	$	2,547	$	168	$	993	$	872	$	1,937	$	16,387