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Note 3 - Allowance for Loan Losses, Nonperforming Assets and Impaired Loans | 6 Months Ended
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Jun. 30, 2021
Notes to Financial Statements |
Allowance for Credit Losses [Text Block] | Note 3: Allowance for Loan Losses, Nonperforming Assets and Impaired Loans The allowance for loan losses methodology incorporates individual evaluation of impaired loans and collective evaluation of groups of non-impaired loans. The Company performs ongoing analysis of the loan portfolio to determine credit quality and to identify impaired loans. Credit quality is rated based on the loan’s payment history, the borrower’s current financial situation and value of the underlying collateral. Impaired Loans Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts will not be collected when due according to the contractual terms of the loan agreement. Impaired loans are those loans that have been modified in a TDR as well as larger, usually non-homogeneous loans that exhibit payment history or financial status that indicate that collection probably will not occur when due according to the loan’s terms. Measurement Impaired loans are individually evaluated to determine appropriate reserves and are measured at the lower of the invested amount or fair value. Fair value is estimated using the collateral method or the cash flow method. The collateral method is applied to collateral-dependent loans, loans for which foreclosure is imminent and to loans for which the fair value of collateral is a more reliable estimate of fair value. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The cash flow method is applied to loans that are not collateral dependent and for which cash flows may be estimated. TDRs TDRs are impaired loans. If the restructuring included forgiveness of a portion of principal or accrued interest, the charge-off is included in the historical charge-off rates applied to the collective evaluation methodology. Restructured loans are individually evaluated for impairment, and the amount of a restructured loan’s book value in excess of its fair value is accrued as a specific allocation in the allowance for loan losses. If a TDR loan payment exceeds 90 days past due, it is examined to determine whether the late payment indicates collateral dependency or cash flows below those that were used in the fair value measurement. TDRs, as well as all impaired loans, that are determined to be collateral dependent are charged down to fair value. Deficiencies indicated by impairment measurements for TDRs that are not collateral dependent may be accrued in the allowance for loan losses or charged off if deemed uncollectible. Please refer to the Company’s 2020 Form 10-K, Note 1: Summary of Significant Accounting Policies for additional information on evaluation of impaired loans and associated specific reserves, and policies regarding nonaccruals, past due status and charge-offs. Collectively-Evaluated Loans The Company evaluated characteristics in the loan portfolio and determined major segments and smaller classes within each segment. These characteristics include collateral type, repayment sources, and (if applicable) the borrower’s business model. Loans within each class are further stratified by risk rating: pass-rated loans, loans rated special mention, and loans rated classified. Portfolio Segments and Classes The segments and classes used in determining the allowance for loan losses are as follows.
Real Estate Construction Construction, residential Construction, other Consumer Real Estate Equity lines Residential closed-end first liens Residential closed-end junior liens Investor-owned residential real estate Commercial Real Estate Multifamily real estate Commercial real estate, owner-occupied Commercial real estate, other | Commercial Non Real Estate Commercial and industrial Public Sector and IDA Public sector and IDA Consumer Non Real Estate Credit cards Automobile Other consumer loans
Please refer to the Company’s 2020 Form 10-K, Note 1: Summary of Significant Accounting Policies for a discussion of risk factors pertinent to each class. Credit risk is estimated at the class level, by risk rating, by applying historical net charge-off rates and percentages for qualitative factors that influence credit risk. Historical Loss Rates The Company’s allowance methodology for collectively evaluated loans applies historical loss rates by class to current class balances as part of the process of determining required reserves. The Company averages loss rates for the most recent eight quarters to determine the historical loss rate for each class. Within each class, loans are risk rated pass, special mention or classified. Loss rates are applied based upon risk rating. Total net charge-offs for the class as a percentage of average class loan balance is applied to pass rated loans and loans rated special mention. Total net charge-offs for the class as a percentage of average classified loans in the class is applied to classified loans. Net charge-offs in both calculations include charge-offs and recoveries of classified and non-classified loans as well as those associated with impaired loans. Qualitative Factors In addition to historical loss rates, risk factors pertinent to credit risk for each class are analyzed to estimate reserves for collectively evaluated loans. Factors include changes in national and local economic and business conditions, the nature and volume of classes within the portfolio, loan quality, loan officers’ experience, lending policies and the Company’s loan review system. A detailed analysis showing the allowance roll-forward by portfolio segment and related loan balance by segment follows.
|  | Activity in the Allowance for Loan Losses for the Six Months Ended June 30, 2021
|  | Real Estate Construction |  | Consumer Real Estate |  | Commercial Real Estate |  | Commercial Non Real Estate |  | Public Sector and IDA |  | Consumer Non Real Estate |  | Unallocated |  | Total
Balance, December 31, 2020 |  | $ | 503 |  |  | $ | 2,165 |  |  | $ | 3,853 |  |  | $ | 670 |  |  | $ | 339 |  |  | $ | 555 |  |  | $ | 396 |  |  | $ | 8,481 |
Charge-offs |  |  | - |  |  |  | (13 | ) |  |  | - |  |  |  | (485 | ) |  |  | - |  |  |  | (88 | ) |  |  | - |  |  |  | (586 | )
Recoveries |  |  | - |  |  |  | - |  |  |  | 25 |  |  |  | 27 |  |  |  | - |  |  |  | 76 |  |  |  | - |  |  |  | 128 |
Provision for (recovery of) loan losses |  |  | (18 | ) |  |  | (144 | ) |  |  | (427 | ) |  |  | 655 |  |  |  | 37 |  |  |  | (26 | ) |  |  | (23 | ) |  |  | 54 |
Balance, June 30, 2021 |  | $ | 485 |  |  | $ | 2,008 |  |  | $ | 3,451 |  |  | $ | 867 |  |  | $ | 376 |  |  | $ | 517 |  |  | $ | 373 |  |  | $ | 8,077 |
|  | Activity in the Allowance for Loan Losses for the Six Months Ended June 30, 2020
|  | Real Estate Construction |  | Consumer Real Estate |  | Commercial Real Estate |  | Commercial Non Real Estate |  | Public Sector and IDA |  | Consumer Non Real Estate |  | Unallocated |  | Total
Balance, December 31, 2019 |  | $ | 400 |  |  | $ | 1,895 |  |  | $ | 2,559 |  |  | $ | 555 |  |  | $ | 478 |  |  | $ | 650 |  |  | $ | 326 |  |  | $ | 6,863 |
Charge-offs |  |  | - |  |  |  | (62 | ) |  |  | (15 | ) |  |  | (347 | ) |  |  | - |  |  |  | (116 | ) |  |  | - |  |  |  | (540 | )
Recoveries |  |  | - |  |  |  | 16 |  |  |  | 24 |  |  |  | 1 |  |  |  | - |  |  |  | 113 |  |  |  | - |  |  |  | 154 |
Provision for (recovery of) loan losses |  |  | (15 | ) |  |  | 417 |  |  |  | 808 |  |  |  | 457 |  |  |  | 85 |  |  |  | 10 |  |  |  | 69 |  |  |  | 1,831 |
Balance, June 30, 2020 |  | $ | 385 |  |  | $ | 2,266 |  |  | $ | 3,376 |  |  | $ | 666 |  |  | $ | 563 |  |  | $ | 657 |  |  | $ | 395 |  |  | $ | 8,308 |
|  | Activity in the Allowance for Loan Losses for the Year Ended December 31, 2020
|  | Real Estate Construction |  | Consumer Real Estate |  | Commercial Real Estate |  | Commercial Non Real Estate |  | Public Sector and IDA |  | Consumer Non Real Estate |  | Unallocated |  | Total
Balance, December 31, 2019 |  | $ | 400 |  |  | $ | 1,895 |  |  | $ | 2,559 |  |  | $ | 555 |  |  | $ | 478 |  |  | $ | 650 |  |  | $ | 326 |  |  | $ | 6,863 |
Charge-offs |  |  | - |  |  |  | (85 | ) |  |  | (15 | ) |  |  | (372 | ) |  |  | - |  |  |  | (248 | ) |  |  | - |  |  |  | (720 | )
Recoveries |  |  | - |  |  |  | 18 |  |  |  | 145 |  |  |  | 9 |  |  |  | - |  |  |  | 175 |  |  |  | - |  |  |  | 347 |
Provision for (recovery of) loan losses |  |  | 103 |  |  |  | 337 |  |  |  | 1,164 |  |  |  | 478 |  |  |  | (139 | ) |  |  | (22 | ) |  |  | 70 |  |  |  | 1,991 |
Balance, December 31, 2020 |  | $ | 503 |  |  | $ | 2,165 |  |  | $ | 3,853 |  |  | $ | 670 |  |  | $ | 339 |  |  | $ | 555 |  |  | $ | 396 |  |  | $ | 8,481 |
|  | Allowance for Loan Losses as of June 30, 2021
|  | Real Estate Construction |  | Consumer Real Estate |  | Commercial Real Estate |  | Commercial Non Real Estate |  | Public Sector and IDA |  | Consumer Non Real Estate |  | Unallocated |  | Total
Individually evaluated for impairment |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Collectively evaluated for impairment |  |  | 485 |  |  |  | 2,008 |  |  |  | 3,451 |  |  |  | 867 |  |  |  | 376 |  |  |  | 517 |  |  |  | 373 |  |  |  | 8,077 |
Total |  | $ | 485 |  |  | $ | 2,008 |  |  | $ | 3,451 |  |  | $ | 867 |  |  | $ | 376 |  |  | $ | 517 |  |  | $ | 373 |  |  | $ | 8,077 |
|  | Allowance for Loan Losses as of December 31, 2020
|  | Real Estate Construction |  | Consumer Real Estate |  | Commercial Real Estate |  | Commercial Non Real Estate |  | Public Sector and IDA |  | Consumer Non Real Estate |  | Unallocated |  | Total
Individually evaluated for impairment |  | $ | - |  |  | $ | 2 |  |  | $ | - |  |  | $ | 73 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 75 |
Collectively evaluated for impairment |  |  | 503 |  |  |  | 2,163 |  |  |  | 3,853 |  |  |  | 597 |  |  |  | 339 |  |  |  | 555 |  |  |  | 396 |  |  |  | 8,406 |
Total |  | $ | 503 |  |  | $ | 2,165 |  |  | $ | 3,853 |  |  | $ | 670 |  |  | $ | 339 |  |  | $ | 555 |  |  | $ | 396 |  |  | $ | 8,481 |
|  | Loans as of June 30, 2021
|  | Real Estate Construction |  | Consumer Real Estate |  | Commercial Real Estate |  | Commercial Non Real Estate |  | Public Sector and IDA |  | Consumer Non Real Estate |  | Total
Individually evaluated for impairment |  | $ | - |  |  | $ | 192 |  |  | $ | 6,265 |  |  | $ | 316 |  |  | $ | - |  |  | $ | 1 |  |  | $ | 6,774 |
Collectively evaluated for impairment |  |  | 48,569 |  |  |  | 196,022 |  |  |  | 398,371 |  |  |  | 73,206 |  |  |  | 52,370 |  |  |  | 31,894 |  |  |  | 800,432 |
Total |  | $ | 48,569 |  |  | $ | 196,214 |  |  | $ | 404,636 |  |  | $ | 73,522 |  |  | $ | 52,370 |  |  | $ | 31,895 |  |  | $ | 807,206 |
|  | Loans as of December 31, 2020
|  | Real Estate Construction |  | Consumer Real Estate |  | Commercial Real Estate |  | Commercial Non Real Estate |  | Public Sector and IDA |  | Consumer Non Real Estate |  | Total
Individually evaluated for impairment |  | $ | - |  |  | $ | 194 |  |  | $ | 3,856 |  |  | $ | 851 |  |  | $ | - |  |  | $ | 2 |  |  | $ | 4,903 |
Collectively evaluated for impairment |  |  | 42,266 |  |  |  | 181,588 |  |  |  | 389,259 |  |  |  | 77,920 |  |  |  | 40,983 |  |  |  | 33,108 |  |  |  | 765,124 |
Total |  | $ | 42,266 |  |  | $ | 181,782 |  |  | $ | 393,115 |  |  | $ | 78,771 |  |  | $ | 40,983 |  |  | $ | 33,110 |  |  | $ | 770,027 |
A summary of ratios for the allowance for loan losses follows.
|  | As of and for the
|  | Six Months Ended June 30, |  | Year Ended December 31,
|  | 2021 |  | 2020 |  | 2020
Ratio of allowance for loan losses to the end of period loans, net of unearned income and deferred fees and costs(1) |  |  | 1.00 | % |  |  | 1.05 | % |  |  | 1.10 | %
Ratio of net charge-offs to average loans, net of unearned income and deferred fees and costs(2) |  |  | 0.12 | % |  |  | 0.10 | % |  |  | 0.05 | %
(1) | The ratio of the allowance for loan losses to the end of period loans, net of unearned income and deferred fees and costs at June 30, 2021, December 31, 2020 and June 30, 2020 includes government-guaranteed SBA PPP loans, which do not require an allowance for loan losses. Excluding the PPP loans, the ratio would be 1.04% at June 30, 2021, 1.16% at December 31, 2020 and 1.13% at June 30, 2020.
(2) | Net charge-offs are on an annualized basis.
A summary of nonperforming assets follows.
|  | June 30, |  | December 31,
|  | 2021 |  | 2020 |  | 2020
Nonperforming assets: |  |  |  |  |  |  |  |  |  |  |  |
Nonaccrual loans |  | $ | 713 |  |  | $ | 943 |  |  | $ | 846 |
Restructured loans in nonaccrual |  |  | 3,109 |  |  |  | 2,887 |  |  |  | 2,839 |
Total nonperforming loans |  |  | 3,822 |  |  |  | 3,830 |  |  |  | 3,685 |
Other real estate owned, net |  |  | 1,007 |  |  |  | 1,553 |  |  |  | 1,553 |
Total nonperforming assets |  | $ | 4,829 |  |  | $ | 5,383 |  |  | $ | 5,238 |
Ratio of nonperforming assets to loans, net of unearned income and deferred fees and costs, plus other real estate owned |  |  | 0.60 | % |  |  | 0.68 | % |  |  | 0.68 | %
Ratio of allowance for loan losses to nonperforming loans(1) |  |  | 211.33 | % |  |  | 216.92 | % |  |  | 230.15 | %
(1) | The Company defines nonperforming loans as nonaccrual loans and restructured loans that are nonaccrual. Loans 90 days past due and still accruing and accruing restructured loans are excluded.
A summary of loans past due 90 days or more and impaired loans follows.
|  | June 30, |  | December 31,
|  | 2021 |  | 2020 |  | 2020
Loans past due 90 days or more and still accruing |  | $ | 28 |  |  | $ | 237 |  |  | $ | 17 |
Ratio of loans past due 90 days or more and still accruing to loans, net of unearned income and deferred fees and costs |  |  | 0.00 | % |  |  | 0.03 | % |  |  | 0.00 | %
Accruing restructured loans |  | $ | 3,011 |  |  | $ | 1,453 |  |  | $ | 1,410 |
Impaired loans: |  |  |  |  |  |  |  |  |  |  |  |
Impaired loans with no valuation allowance |  | $ | 6,774 |  |  | $ | 4,151 |  |  | $ | 3,858 |
Impaired loans with a valuation allowance |  |  | - |  |  |  | 1,076 |  |  |  | 1,045 |
Total impaired loans |  | $ | 6,774 |  |  | $ | 5,227 |  |  | $ | 4,903 |
Valuation allowance |  |  | - |  |  |  | (104 | ) |  |  | (75 | )
Impaired loans, net of allowance |  | $ | 6,774 |  |  | $ | 5,123 |  |  | $ | 4,828 |
Average recorded investment in impaired loans(1) |  | $ | 6,796 |  |  | $ | 5,263 |  |  | $ | 5,093 |
Interest income recognized on impaired loans, after designation as impaired |  | $ | 105 |  |  | $ | 29 |  |  | $ | 54 |
Amount of income recognized on a cash basis |  | $ | - |  |  | $ | - |  |  | $ | - |
(1) | Recorded investment is net of charge-offs and interest paid while a loan is in nonaccrual status.
No interest income was recognized on nonaccrual loans for the six months ended June 30, 2021 or June 30, 2020 or for the year ended December 31, 2020. A detailed analysis of investment in impaired loans and associated reserves, segregated by loan class follows.
|  | Impaired Loans as of June 30, 2021
|  | Principal Balance |  | Total Recorded Investment(1) |  | Recorded Investment(1) for Which There is No Related Allowance |  | Recorded Investment(1) for Which There is a Related Allowance |  | Related Allowance
Consumer Real Estate(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investor-owned residential real estate |  | $ | 192 |  |  | $ | 192 |  |  | $ | 192 |  |  | $ | - |  |  | $ | - |
Commercial Real Estate(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate, owner-occupied |  |  | 3,485 |  |  |  | 2,887 |  |  |  | 2,887 |  |  |  | - |  |  |  | - |
Commercial real estate, other |  |  | 3,378 |  |  |  | 3,378 |  |  |  | 3,378 |  |  |  | - |  |  |  | - |
Commercial Non Real Estate(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 318 |  |  |  | 316 |  |  |  | 316 |  |  |  | - |  |  |  | - |
Consumer Non Real Estate(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Automobile |  |  | 1 |  |  |  | 1 |  |  |  | 1 |  |  |  | - |  |  |  | - |
Total |  | $ | 7,374 |  |  | $ | 6,774 |  |  | $ | 6,774 |  |  | $ | - |  |  | $ | - |
(1) | Recorded investment is net of charge-offs and interest paid while a loan is in nonaccrual status.
(2) | Only classes with impaired loans are shown.
|  | Impaired Loans as of December 31, 2020
|  | Principal Balance |  | Total Recorded Investment(1) |  | Recorded Investment(1) for Which There is No Related Allowance |  | Recorded Investment(1) for Which There is a Related Allowance |  | Related Allowance
Consumer Real Estate(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investor-owned residential real estate |  | $ | 194 |  |  | $ | 194 |  |  | $ | - |  |  | $ | 194 |  |  | $ | 2 |
Commercial Real Estate(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate, owner occupied |  |  | 3,752 |  |  |  | 3,202 |  |  |  | 3,202 |  |  |  | - |  |  |  | - |
Commercial real estate, other |  |  | 654 |  |  |  | 654 |  |  |  | 654 |  |  |  | - |  |  |  | - |
Commercial Non-Real Estate(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 851 |  |  |  | 851 |  |  |  | - |  |  |  | 851 |  |  |  | 73 |
Consumer Non-Real Estate(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Automobile |  |  | 2 |  |  |  | 2 |  |  |  | 2 |  |  |  | - |  |  |  | - |
Total |  | $ | 5,453 |  |  | $ | 4,903 |  |  | $ | 3,858 |  |  | $ | 1,045 |  |  | $ | 75 |
(1) | Recorded investment is net of charge-offs and interest paid while a loan is in nonaccrual status.
(2) | Only classes with impaired loans are shown.
The following tables show the average recorded investment and interest income recognized for impaired loans.
|  | For the Six Months Ended June 30, 2021
|  | Average Recorded Investment(1) |  | Interest Income Recognized
Consumer Real Estate(2) |  |  |  |  |  |  |  |
Investor-owned residential real estate |  | $ | 193 |  |  | $ | 6 |
Commercial Real Estate(2) |  |  |  |  |  |  |  |
Commercial real estate, owner occupied |  |  | 2,890 |  |  |  | 7 |
Commercial real estate, other |  |  | 3,378 |  |  |  | 84 |
Commercial Non Real Estate(2) |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 334 |  |  |  | 8 |
Consumer Non Real Estate(2) |  |  |  |  |  |  |  |
Automobile |  |  | 1 |  |  |  | - |
Total |  | $ | 6,796 |  |  | $ | 105 |
(1) | Recorded investment is net of charge-offs and interest paid while a loan is in nonaccrual status.
(2) | Only classes with impaired loans are shown.
|  | For the Six Months Ended June 30, 2020
|  | Average Recorded Investment(1) |  | Interest Income Recognized
Consumer Real Estate(2) |  |  |  |  |  |  |  |
Investor-owned residential real estate |  | $ | 246 |  |  | $ | 8 |
Commercial Real Estate(2) |  |  |  |  |  |  |  |
Commercial real estate, owner occupied |  |  | 3,265 |  |  |  | 10 |
Commercial real estate, other |  |  | 868 |  |  |  | - |
Commercial Non Real Estate(2) |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 910 |  |  |  | 11 |
Consumer Non Real Estate(2) |  |  |  |  |  |  |  |
Automobile |  |  | 4 |  |  |  | - |
Total |  | $ | 5,263 |  |  | $ | 29 |
(1) | Recorded investment is net of charge-offs and interest paid while a loan is in nonaccrual status.
(2) | Only classes with impaired loans are shown.
|  | For the Year Ended December 31, 2020
|  | Average Recorded Investment(1) |  | Interest Income Recognized
Consumer Real Estate(2) |  |  |  |  |  |  |  |
Investor-owned residential real estate |  | $ | 196 |  |  | $ | 13 |
Commercial Real Estate(2) |  |  |  |  |  |  |  |
Commercial real estate, owner occupied |  |  | 3,217 |  |  |  | 19 |
Commercial real estate, other |  |  | 790 |  |  |  | - |
Commercial Non-Real Estate(2) |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 887 |  |  |  | 22 |
Consumer Non-Real Estate(2) |  |  |  |  |  |  |  |
Automobile |  |  | 3 |  |  |  | - |
Total |  | $ | 5,093 |  |  | $ | 54 |
(1) | Recorded investment is net of charge-offs and interest paid while a loan is in nonaccrual status.
(2) | Only classes with impaired loans are shown.
An analysis of past due and nonaccrual loans follows.
June 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 30 – 89 Days Past Due and Accruing |  | 90 or More Days Past Due |  | 90 or More Days Past Due and Accruing |  | Nonaccruals(2)
Consumer Real Estate(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential closed-end first liens |  | $ | 463 |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Commercial Real Estate(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate, owner-occupied |  |  | 205 |  |  |  | 454 |  |  |  | - |  |  |  | 2,792 |
Commercial real estate, other |  |  | - |  |  |  | 654 |  |  |  | - |  |  |  | 654 |
Commercial Non Real Estate(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 186 |  |  |  | 18 |  |  |  | 18 |  |  |  | 376 |
Consumer Non Real Estate(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Automobile |  |  | 92 |  |  |  | - |  |  |  | - |  |  |  | - |
Other consumer loans |  |  | 153 |  |  |  | 10 |  |  |  | 10 |  |  |  | - |
Total |  | $ | 1,099 |  |  | $ | 1,136 |  |  | $ | 28 |  |  | $ | 3,822 |
(1) | Only classes with past-due or nonaccrual loans are shown.
(2) | Includes current and past due loans in nonaccrual status. Includes impaired loans in nonaccrual status.
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 30 – 89 Days Past Due and Accruing |  | 90 or More Days Past Due |  | 90 or More Days Past Due and Accruing |  | Nonaccruals(2)
Consumer Real Estate(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential closed-end first liens |  | $ | 365 |  |  | $ | 62 |  |  | $ | - |  |  | $ | 62 |
Investor-owned residential real estate |  |  | 106 |  |  |  | - |  |  |  | - |  |  |  | - |
Commercial Real Estate(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate, owner occupied |  |  | 15 |  |  |  | 571 |  |  |  | - |  |  |  | 2,941 |
Commercial real estate, other |  |  | - |  |  |  | 654 |  |  |  | - |  |  |  | 654 |
Commercial Non-Real Estate(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 730 |  |  |  | 27 |  |  |  | - |  |  |  | 28 |
Consumer Non-Real Estate(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  |  | 7 |  |  |  | 3 |  |  |  | 3 |  |  |  | - |
Automobile |  |  | 144 |  |  |  | 1 |  |  |  | 1 |  |  |  | - |
Other consumer loans |  |  | 130 |  |  |  | 13 |  |  |  | 13 |  |  |  | - |
Total |  | $ | 1,497 |  |  | $ | 1,331 |  |  | $ | 17 |  |  | $ | 3,685 |
(1) | Only classes with past-due or nonaccrual loans are shown.
(2) | Includes current and past due loans in nonaccrual status. Includes impaired loans in nonaccrual status.
The following displays collectively-evaluated loans by credit quality indicator.
June 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |
|  | Pass(1) |  | Special Mention(1) |  | Classified(1)
Real Estate Construction |  |  |  |  |  |  |  |  |  |  |  |
Construction, 1-4 family residential |  | $ | 10,213 |  |  | $ | - |  |  | $ | - |
Construction, other |  |  | 38,356 |  |  |  | - |  |  |  | - |
Consumer Real Estate |  |  |  |  |  |  |  |  |  |  |  |
Equity lines |  |  | 13,071 |  |  |  | - |  |  |  | - |
Closed-end first liens |  |  | 102,692 |  |  |  | 64 |  |  |  | 243 |
Closed-end junior liens |  |  | 2,985 |  |  |  | - |  |  |  | - |
Investor-owned residential real estate |  |  | 76,341 |  |  |  | 626 |  |  |  | - |
Commercial Real Estate |  |  |  |  |  |  |  |  |  |  |  |
Multifamily residential real estate |  |  | 104,507 |  |  |  | 258 |  |  |  | - |
Commercial real estate owner-occupied |  |  | 139,144 |  |  |  | 542 |  |  |  | 176 |
Commercial real estate, other |  |  | 149,958 |  |  |  | 3,786 |  |  |  | - |
Commercial Non Real Estate |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 73,118 |  |  |  | - |  |  |  | 88 |
Public Sector and IDA |  |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  |  | 52,370 |  |  |  | - |  |  |  | - |
Consumer Non Real Estate |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  |  | 4,359 |  |  |  | - |  |  |  | - |
Automobile |  |  | 11,585 |  |  |  | - |  |  |  | - |
Other consumer |  |  | 15,839 |  |  |  | - |  |  |  | 111 |
Total |  | $ | 794,538 |  |  | $ | 5,276 |  |  | $ | 618 |
(1) | Excludes impaired, if any.
The following displays collectively-evaluated loans by credit quality indicator.
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |
|  | Pass(1) |  | Special Mention(1) |  | Classified(1)
Real Estate Construction |  |  |  |  |  |  |  |  |  |  |  |
Construction, 1-4 family residential |  | $ | 8,195 |  |  | $ | - |  |  | $ | - |
Construction, other |  |  | 34,071 |  |  |  | - |  |  |  | - |
Consumer Real Estate |  |  |  |  |  |  |  |  |  |  |  |
Equity lines |  |  | 13,903 |  |  |  | - |  |  |  | - |
Residential closed-end first liens |  |  | 92,241 |  |  |  | 66 |  |  |  | 284 |
Residential closed-end junior liens |  |  | 3,003 |  |  |  | - |  |  |  | - |
Investor-owned residential real estate |  |  | 71,450 |  |  |  | 641 |  |  |  | - |
Commercial Real Estate |  |  |  |  |  |  |  |  |  |  |  |
Multifamily residential real estate |  |  | 87,455 |  |  |  | 265 |  |  |  | - |
Commercial real estate owner-occupied |  |  | 146,900 |  |  |  | 543 |  |  |  | 140 |
Commercial real estate, other |  |  | 147,436 |  |  |  | 6,520 |  |  |  | - |
Commercial Non-Real Estate |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 77,892 |  |  |  | - |  |  |  | 28 |
Public Sector and IDA |  |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  |  | 40,983 |  |  |  | - |  |  |  | - |
Consumer Non-Real Estate |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  |  | 4,665 |  |  |  | - |  |  |  | - |
Automobile |  |  | 12,024 |  |  |  | - |  |  |  | 6 |
Other consumer |  |  | 16,398 |  |  |  | - |  |  |  | 15 |
Total |  | $ | 756,616 |  |  | $ | 8,035 |  |  | $ | 473 |
(1) | Excludes impaired, if any.
Determination of risk ratings was completed for the portfolio as of June 30, 2021 and December 31, 2020. Troubled Debt Restructurings Total TDRs amounted to $6,120 at June 30, 2021, $4,249 at December 31, 2020, and $4,340 at June 30, 2020. All of the Company’s TDR loans are fully funded and no further increase in credit is available. TDRs Designated During the Reporting Period During the three months ended June 30, 2021 the Company designated two loans as a TDR. The restructurings re-amortized the loans and reduced the interest rates to provide cash flow relief. No principal or interest was forgiven. The impairment measurement at June 30, 2021 was based upon the collateral method and did not result in a specific allocation. The following table presents restructurings by class that occurred during the three month period ended June 30, 2021.
|  | Restructurings That Occurred During the Three Months Ended June 30, 2021
|  | Number of Contracts |  | Pre-Modification Outstanding Principal Balance |  | Post-Modification Outstanding Principal Balance
Commercial Real Estate |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate, other |  |  | 2 |  |  | $ | 2,724 |  |  | $ | 2,724 |
Total |  |  | 2 |  |  | $ | 2,724 |  |  | $ | 2,724 |
During the six months ended June 30, 2021 the Company designated three loans as a TDR. For one loan, the restructurings shifted the payment structure from interest-only to amortizing and reduced the interest rate to provide cash flow relief. For two of the loans, the restructuring re-amortized the loans and reduced the interest rate to provide cash flow relief. No principal or interest was forgiven. The impairment measurement for all three loans at June 30, 2021 was based upon the collateral method and did not result in a specific allocation. The following table presents restructurings by class that occurred during the six month period ended June 30, 2021.
|  | Restructurings That Occurred During the Six Months Ended June 30, 2021
|  | Number of Contracts |  | Pre-Modification Outstanding Principal Balance |  | Post-Modification Outstanding Principal Balance
Commercial Real Estate |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate owner-occupied |  |  | 1 |  |  | $ | 102 |  |  | $ | 102 |
Commercial real estate, other |  |  | 2 |  |  |  | 2,724 |  |  |  | 2,724 |
Total |  |  | 3 |  |  | $ | 2,826 |  |  | $ | 2,826 |
The Company did not modify any loans in troubled debt restructurings during the three or six month periods ended June 30, 2020. Defaulted TDRs The Company analyzed its TDR portfolio for loans that defaulted during the three and six month periods ended June 30, 2021 and June 30, 2020, and that were modified within 12 months prior to default. The Company designates three circumstances that indicate default: one or more payments that occur more than 90 days past the due date, charge-off, or foreclosure after the date of restructuring. Of the Company’s TDRs at June 30, 2021 and June 30, 2020, none of the defaulted TDRs were modified within 12 months prior to default. All of the defaulted TDRs were in nonaccrual status as of June 30, 2021 and June 30, 2020.

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