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Note 3 - Allowance for Loan Losses, Nonperforming Assets and Impaired Loans | 6 Months Ended
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Jun. 30, 2022
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 on an individual loan basis and to identify impaired loans. Please refer to the Company’s 2021 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 loan portfolio is comprised of major segments and smaller classes within each segment. Segments and classes are determined based on characteristics such as collateral type and intended use, repayment sources, and (if applicable) the borrower’s business model. The methodology for calculating reserves for collectively evaluated loans is applied at the class level. The Company’s segments and classes within each segment are presented below: 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
Collectively-evaluated loans within each class are further stratified by risk rating: pass-rated loans, loans rated special mention, and loans rated classified. Credit risk for collectively-evaluated loans 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. Please refer to the Company’s 2021 Form 10-K, Note 1: Summary of Significant Accounting Policies for a discussion of risk factors pertinent to each class. 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, 2022 |
|  | 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, 2021 |  | $ | 422 |  |  | $ | 1,930 |  |  | $ | 3,121 |  |  | $ | 1,099 |  |  | $ | 297 |  |  | $ | 444 |  |  | $ | 361 |  |  | $ | 7,674 |
Charge-offs |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (2 | ) |  |  | - |  |  |  | (133 | ) |  |  | - |  |  |  | (135 | )
Recoveries |  |  | - |  |  |  | - |  |  |  | 24 |  |  |  | 6 |  |  |  | - |  |  |  | 56 |  |  |  | - |  |  |  | 86 |
Provision for (recovery of) loan losses |  |  | 285 |  |  |  | 189 |  |  |  | 325 |  |  |  | (307 | ) |  |  | 39 |  |  |  | 95 |  |  |  | (182 | ) |  |  | 444 |
Balance, June 30, 2022 |  | $ | 707 |  |  | $ | 2,119 |  |  | $ | 3,470 |  |  | $ | 796 |  |  | $ | 336 |  |  | $ | 462 |  |  | $ | 179 |  |  | $ | 8,069 |
|  | 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 Year Ended December 31, 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 | ) |  |  | - |  |  |  | (526 | ) |  |  | - |  |  |  | (216 | ) |  |  | - |  |  |  | (755 | )
Recoveries |  |  | - |  |  |  | 20 |  |  |  | 159 |  |  |  | 33 |  |  |  | - |  |  |  | 134 |  |  |  | - |  |  |  | 346 |
Provision for (recovery of) loan losses |  |  | (81 | ) |  |  | (242 | ) |  |  | (891 | ) |  |  | 922 |  |  |  | (42 | ) |  |  | (29 | ) |  |  | (35 | ) |  |  | (398 | )
Balance, December 31, 2021 |  | $ | 422 |  |  | $ | 1,930 |  |  | $ | 3,121 |  |  | $ | 1,099 |  |  | $ | 297 |  |  | $ | 444 |  |  | $ | 361 |  |  | $ | 7,674 |
|  | Allowance for Loan Losses as of June 30, 2022 |
|  | 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 |  |  | 707 |  |  |  | 2,119 |  |  |  | 3,470 |  |  |  | 796 |  |  |  | 336 |  |  |  | 462 |  |  |  | 179 |  |  |  | 8,069 |
Total |  | $ | 707 |  |  | $ | 2,119 |  |  | $ | 3,470 |  |  | $ | 796 |  |  | $ | 336 |  |  | $ | 462 |  |  | $ | 179 |  |  | $ | 8,069 |
|  | Allowance for Loan Losses as of December 31, 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 |  |  | 422 |  |  |  | 1,930 |  |  |  | 3,121 |  |  |  | 1,099 |  |  |  | 297 |  |  |  | 444 |  |  |  | 361 |  |  |  | 7,674 |
Total |  | $ | 422 |  |  | $ | 1,930 |  |  | $ | 3,121 |  |  | $ | 1,099 |  |  | $ | 297 |  |  | $ | 444 |  |  | $ | 361 |  |  | $ | 7,674 |
|  | Loans as of June 30, 2022 |
|  | 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 |  | $ | - |  |  | $ | 188 |  |  | $ | 5,342 |  |  | $ | 279 |  |  | $ | - |  |  | $ | - |  |  | $ | 5,809 |
Collectively evaluated for impairment |  |  | 69,724 |  |  |  | 216,955 |  |  |  | 420,046 |  |  |  | 52,059 |  |  |  | 49,856 |  |  |  | 34,825 |  |  |  | 843,465 |
Total |  | $ | 69,724 |  |  | $ | 217,143 |  |  | $ | 425,388 |  |  | $ | 52,338 |  |  | $ | 49,856 |  |  | $ | 34,825 |  |  | $ | 849,274 |
|  | Loans as of December 31, 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 |  | $ | - |  |  | $ | 191 |  |  | $ | 5,386 |  |  | $ | 301 |  |  | $ | - |  |  | $ | - |  |  | $ | 5,878 |
Collectively evaluated for impairment |  |  | 48,841 |  |  |  | 208,786 |  |  |  | 400,336 |  |  |  | 59,963 |  |  |  | 47,899 |  |  |  | 32,026 |  |  |  | 797,851 |
Total |  | $ | 48,841 |  |  | $ | 208,977 |  |  | $ | 405,722 |  |  | $ | 60,264 |  |  | $ | 47,899 |  |  | $ | 32,026 |  |  | $ | 803,729 |
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, |
|  | 2022 |  |  | 2021 |  |  | 2021 |
Ratio of allowance for loan losses to the end of period loans, net of unearned income and deferred fees and costs(1) |  |  | 0.95 | % |  |  | 1.00 | % |  |  | 0.96 | %
Ratio of net charge-offs to average loans, net of unearned income and deferred fees and costs(1) |  |  | 0.01 | % |  |  | 0.12 | % |  |  | 0.05 | %
(1) | Net charge-offs are on an annualized basis.
A summary of nonperforming assets follows.
|  | June 30, |  |  | December 31, |
|  | 2022 |  |  | 2021 |  |  | 2021 |
Nonperforming assets: |  |  |  |  |  |  |  |  |  |  |  |
Nonaccrual loans |  | $ | 168 |  |  | $ | 713 |  |  | $ | - |
Restructured loans in nonaccrual |  |  | 2,811 |  |  |  | 3,109 |  |  |  | 2,873 |
Total nonperforming loans |  |  | 2,979 |  |  |  | 3,822 |  |  |  | 2,873 |
Other real estate owned, net |  |  | 957 |  |  |  | 1,007 |  |  |  | 957 |
Total nonperforming assets |  | $ | 3,936 |  |  | $ | 4,829 |  |  | $ | 3,830 |
Ratio of nonperforming assets to loans, net of unearned income and deferred fees and costs, plus other real estate owned |  |  | 0.46 | % |  |  | 0.60 | % |  |  | 0.48 | %
Ratio of allowance for loan losses to nonperforming loans(1) |  |  | 270.86 | % |  |  | 211.33 | % |  |  | 267.11 | %
(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, |
|  | 2022 |  |  | 2021 |  |  | 2021 |
Loans past due 90 days or more and still accruing |  | $ | 7 |  |  | $ | 28 |  |  | $ | 90 |
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 | % |  |  | 0.00 | % |  |  | 0.01 | %
Accruing restructured loans |  | $ | 2,998 |  |  | $ | 3,011 |  |  | $ | 3,005 |
Impaired loans: |  |  |  |  |  |  |  |  |  |  |  |
Impaired loans with no valuation allowance |  | $ | 5,809 |  |  | $ | 6,774 |  |  | $ | 5,878 |
Impaired loans with a valuation allowance |  |  | - |  |  |  | - |  |  |  | - |
Total impaired loans |  | $ | 5,809 |  |  | $ | 6,774 |  |  | $ | 5,878 |
Valuation allowance |  |  | - |  |  |  | - |  |  |  | - |
Impaired loans, net of allowance |  | $ | 5,809 |  |  | $ | 6,774 |  |  | $ | 5,878 |
Average recorded investment in impaired loans(1) |  | $ | 5,820 |  |  | $ | 6,796 |  |  | $ | 5,901 |
Interest income recognized on impaired loans, after designation as impaired |  | $ | 43 |  |  | $ | 105 |  |  | $ | 137 |
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, 2022 or June 30, 2021 or for the year ended December 31, 2021. A detailed analysis of investment in impaired loans and associated reserves, segregated by loan class follows. Only classes with impaired loans are presented.
|  | Impaired Loans as of June 30, 2022 |
|  | 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 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investor-owned residential real estate |  | $ | 188 |  |  | $ | 188 |  |  | $ | 188 |  |  | $ | - |  |  | $ | - |
Commercial Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate, owner-occupied |  |  | 3,252 |  |  |  | 2,624 |  |  |  | 2,624 |  |  |  | - |  |  |  | - |
Commercial real estate, other |  |  | 2,718 |  |  |  | 2,718 |  |  |  | 2,718 |  |  |  | - |  |  |  | - |
Commercial Non Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 295 |  |  |  | 279 |  |  |  | 279 |  |  |  | - |  |  |  | - |
Total |  | $ | 6,453 |  |  | $ | 5,809 |  |  | $ | 5,809 |  |  | $ | - |  |  | $ | - |
|  | Impaired Loans as of December 31, 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 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investor-owned residential real estate |  | $ | 191 |  |  | $ | 191 |  |  | $ | 191 |  |  | $ | - |  |  | $ | - |
Commercial Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate, owner occupied |  |  | 3,256 |  |  |  | 2,665 |  |  |  | 2,665 |  |  |  | - |  |  |  | - |
Commercial real estate, other |  |  | 2,721 |  |  |  | 2,721 |  |  |  | 2,721 |  |  |  | - |  |  |  | - |
Commercial Non-Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 310 |  |  |  | 301 |  |  |  | 301 |  |  |  | - |  |  |  | - |
Total |  | $ | 6,478 |  |  | $ | 5,878 |  |  | $ | 5,878 |  |  | $ | - |  |  | $ | - |
(1) | Recorded investment is net of charge-offs and interest paid while a loan is in nonaccrual status.
The following tables show the average recorded investment and interest income recognized for impaired loans. Only classes with impaired loans are presented.
|  | For the Six Months Ended June 30, 2022 |
|  | Average Recorded Investment(1) |  |  | Interest Income Recognized |
Consumer Real Estate |  |  |  |  |  |  |  |
Investor-owned residential real estate |  | $ | 189 |  |  | $ | 6 |
Commercial Real Estate |  |  |  |  |  |  |  |
Commercial real estate, owner occupied |  |  | 2,626 |  |  |  | 3 |
Commercial real estate, other |  |  | 2,719 |  |  |  | 34 |
Commercial Non Real Estate |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 286 |  |  |  | - |
Total |  | $ | 5,820 |  |  | $ | 43 |
(1) | Recorded investment is net of charge-offs and interest paid while a loan is in nonaccrual status.
|  | For the Six Months Ended June 30, 2021 |
|  | Average Recorded Investment(1) |  |  | Interest Income Recognized |
Consumer Real Estate |  |  |  |  |  |  |  |
Investor-owned residential real estate |  | $ | 193 |  |  | $ | 6 |
Commercial Real Estate |  |  |  |  |  |  |  |
Commercial real estate, owner occupied |  |  | 2,890 |  |  |  | 7 |
Commercial real estate, other |  |  | 3,378 |  |  |  | 84 |
Commercial Non Real Estate |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 334 |  |  |  | 8 |
Consumer Non Real Estate |  |  |  |  |  |  |  |
Automobile |  |  | 1 |  |  |  | - |
Total |  | $ | 6,796 |  |  | $ | 105 |
(1) | Recorded investment is net of charge-offs and interest paid while a loan is in nonaccrual status.
|  | For the Year Ended December 31, 2021 |
|  | Average Recorded Investment(1) |  |  | Interest Income Recognized |
Consumer Real Estate |  |  |  |  |  |  |  |
Investor-owned residential real estate |  | $ | 192 |  |  | $ | 13 |
Commercial Real Estate |  |  |  |  |  |  |  |
Commercial real estate, owner occupied |  |  | 2,668 |  |  |  | 9 |
Commercial real estate, other |  |  | 2,723 |  |  |  | 100 |
Commercial Non-Real Estate |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 317 |  |  |  | 15 |
Consumer Non-Real Estate |  |  |  |  |  |  |  |
Automobile |  |  | 1 |  |  |  | - |
Total |  | $ | 5,901 |  |  | $ | 137 |
(1) | Recorded investment is net of charge-offs and interest paid while a loan is in nonaccrual status.
An analysis of past due and nonaccrual loans, including impaired and collectively-evaluated loans, follows. Nonaccrual loans include those in both current and past due status. Only classes with past due or nonaccrual loans are shown.
June 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 30 – 89 Days Past Due and Accruing |  |  | 90 or More Days Past Due (1) |  |  | 90 or More Days Past Due and Accruing |  |  | Nonaccruals |
Consumer Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential closed-end first liens |  | $ | 641 |  |  | $ | 137 |  |  | $ | - |  |  | $ | 137 |
Equity lines |  |  | - |  |  |  | 29 |  |  |  | - |  |  |  | 29 |
Commercial Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate, owner-occupied |  |  | 19 |  |  |  | 258 |  |  |  | - |  |  |  | 2,532 |
Commercial Non Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 37 |  |  |  | - |  |  |  | - |  |  |  | 279 |
Consumer Non Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Automobile |  |  | 35 |  |  |  | - |  |  |  | - |  |  |  | - |
Credit cards |  |  | 2 |  |  |  |  |  |  |  |  |  |  |  |  |
Other consumer loans |  |  | 136 |  |  |  | 7 |  |  |  | 7 |  |  |  | 2 |
Total |  | $ | 870 |  |  | $ | 431 |  |  | $ | 7 |  |  | $ | 2,979 |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 30 – 89 Days Past Due and Accruing |  |  | 90 or More Days Past Due (1) |  |  | 90 or More Days Past Due and Accruing |  |  | Nonaccruals |
Real Estate Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, other |  | $ | 14 |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Consumer Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity lines |  |  | 50 |  |  |  | 29 |  |  |  | 29 |  |  |  | - |
Residential closed-end first liens |  |  | 715 |  |  |  | 58 |  |  |  | 58 |  |  |  | - |
Commercial Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate, owner occupied |  |  | 12 |  |  |  | 266 |  |  |  | - |  |  |  | 2,572 |
Commercial Non-Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 13 |  |  |  | - |  |  |  | - |  |  |  | 301 |
Consumer Non-Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  |  | 2 |  |  |  | 2 |  |  |  | 2 |  |  |  | - |
Automobile |  |  | 93 |  |  |  | - |  |  |  | - |  |  |  | - |
Other consumer loans |  |  | 88 |  |  |  | 1 |  |  |  | 1 |  |  |  | - |
Total |  | $ | 987 |  |  | $ | 356 |  |  | $ | 90 |  |  | $ | 2,873 |
(1) Includes accruing and nonaccrual loans past due 90 days or more. The following displays collectively-evaluated loans by credit quality indicator. Impaired loans are not included.
June 30, 2022 |  | Pass |  |  | Special Mention |  |  | Classified |
Real Estate Construction |  |  |  |  |  |  |  |  |  |  |  |
Construction, 1-4 family residential |  | $ | 17,791 |  |  | $ | - |  |  | $ | - |
Construction, other |  |  | 51,621 |  |  |  | 312 |  |  |  | - |
Consumer Real Estate |  |  |  |  |  |  |  |  |  |  |  |
Equity lines |  |  | 14,165 |  |  |  | - |  |  |  | 29 |
Residential closed-end first liens |  |  | 115,558 |  |  |  | - |  |  |  | 377 |
Residential closed-end junior liens |  |  | 2,189 |  |  |  | - |  |  |  | - |
Investor-owned residential real estate |  |  | 84,043 |  |  |  | - |  |  |  | 594 |
Commercial Real Estate |  |  |  |  |  |  |  |  |  |  |  |
Multifamily residential real estate |  |  | 113,938 |  |  |  | - |  |  |  | - |
Commercial real estate owner-occupied |  |  | 131,560 |  |  |  | - |  |  |  | - |
Commercial real estate, other |  |  | 174,548 |  |  |  | - |  |  |  | - |
Commercial Non Real Estate |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 52,045 |  |  |  | - |  |  |  | 14 |
Public Sector and IDA |  |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  |  | 49,856 |  |  |  | - |  |  |  | - |
Consumer Non Real Estate |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  |  | 4,644 |  |  |  | - |  |  |  | - |
Automobile |  |  | 10,411 |  |  |  | - |  |  |  | - |
Other consumer |  |  | 19,762 |  |  |  | - |  |  |  | 8 |
Total |  | $ | 842,131 |  |  | $ | 312 |  |  | $ | 1,022 |
December 31, 2021 |  | Pass |  |  | Special Mention |  |  | Classified |
Real Estate Construction |  |  |  |  |  |  |  |  |  |  |  |
Construction, 1-4 family residential |  | $ | 10,008 |  |  | $ | - |  |  | $ | - |
Construction, other |  |  | 38,833 |  |  |  | - |  |  |  | - |
Consumer Real Estate |  |  |  |  |  |  |  |  |  |  |  |
Equity lines |  |  | 13,588 |  |  |  | - |  |  |  | 29 |
Residential closed-end first liens |  |  | 106,107 |  |  |  | - |  |  |  | 275 |
Residential closed-end junior liens |  |  | 2,715 |  |  |  | - |  |  |  | - |
Investor-owned residential real estate |  |  | 85,460 |  |  |  | - |  |  |  | 612 |
Commercial Real Estate |  |  |  |  |  |  |  |  |  |  |  |
Multifamily residential real estate |  |  | 106,644 |  |  |  | - |  |  |  | - |
Commercial real estate owner-occupied |  |  | 125,605 |  |  |  | - |  |  |  | 35 |
Commercial real estate, other |  |  | 164,324 |  |  |  | 3,728 |  |  |  | - |
Commercial Non-Real Estate |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 59,953 |  |  |  | - |  |  |  | 10 |
Public Sector and IDA |  |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  |  | 47,899 |  |  |  | - |  |  |  | - |
Consumer Non-Real Estate |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  |  | 4,531 |  |  |  | - |  |  |  | - |
Automobile |  |  | 10,990 |  |  |  | - |  |  |  | 3 |
Other consumer |  |  | 16,402 |  |  |  | - |  |  |  | 100 |
Total |  | $ | 793,059 |  |  | $ | 3,728 |  |  | $ | 1,064 |
Determination of risk ratings was completed for the portfolio as of June 30, 2022 and December 31, 2021. Troubled Debt Restructurings Total TDRs amounted to $5,809 at June 30, 2022, $5,878 at December 31, 2021, and $6,120 at June 30, 2021. All of the Company’s TDR loans are fully funded and no further increase in credit is available. TDRs Designated During the Reporting Period The Company did not designate any new TDRs during the three or six month periods ended June 30, 2022. 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. One loan was modified to shift the payment structure from interest-only to amortizing and reduce the interest rate to provide cash flow relief. Two loans were re-amortized at lower interest rates 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 |
Defaulted TDRs The Company analyzed its TDR portfolio for loans that defaulted during the three and six month periods ended June 30, 2022 and June 30, 2021, 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, 2022 and June 30, 2021, 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, 2022 and June 30, 2021.

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