The Company has divided the loan portfolio into the following portfolio segments based on risk characteristics:

Construction, land development and other land loans – Commercial construction, land and land development loans include loans for the development of residential housing projects, loans for the development of commercial and industrial use property, loans for the purchase and improvement of raw land and loans primarily for agricultural production that are secured by farmland. These loans are secured in whole or in part by the underlying real estate collateral and are generally guaranteed by the principals of the borrowing entity.

Secured by 1-4 family residential properties – These loans include conventional mortgage loans on one-to-four family residential properties. These properties may serve as the borrower’s primary residence, vacation home or investment property. Also included in this portfolio are home equity loans and lines of credit. This type of lending, which is secured by a first or second mortgage on the borrower’s residence, allows customers to borrow against the equity in their home.

Secured by multi-family residential properties – This portfolio segment includes mortgage loans secured by apartment buildings.

Secured by non-farm, non-residential properties – This portfolio segment includes real estate loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers or other commercial property. These loans are generally guaranteed by the principals of the borrowing entity.

Commercial and industrial loans and leases – This portfolio segment includes loans and leases to commercial customers for use in the normal course of business. These credits may be loans, lines of credit and leases to financially strong borrowers, secured by inventories, equipment or receivables, and are generally guaranteed by the principals of the borrowing entity.

Direct consumer – This portfolio segment includes a variety of secured and unsecured personal loans, including automobile loans, loans for household and personal purposes and all other direct consumer installment loans.

Branch retail – This portfolio segment includes loans secured by collateral purchased by consumers at retail stores with whom ALC has an established relationship through its branch network to provide financing for the retail products sold if applicable underwriting standards are met. The collateral securing these loans generally includes personal property items such as furniture, ATVs and home appliances.

Indirect sales – This portfolio segment includes loans secured by collateral purchased by consumers at retail stores with whom the Company has an established relationship to provide financing for the retail products sold if applicable underwriting standards are met. The collateral securing these loans generally includes recreational vehicles, campers, boats, horse trailers and cargo trailers.

As of June 30, 2021 and December 31, 2020, the composition of the loan portfolio by reporting segment and portfolio segment was as follows:

	June 30, 2021
	Bank			ALC		Total
	(Dollars in Thousands)
Real estate loans:
Construction, land development and other land loans	$	53,425		$	—	$	53,425
Secured by 1-4 family residential properties		75,968			2,847		78,815
Secured by multi-family residential properties		53,811			—		53,811
Secured by non-farm, non-residential properties		191,398			—		191,398
Commercial and industrial loans ⁽¹⁾		77,359			—		77,359
Consumer loans:
Direct consumer		6,347			20,590		26,937
Branch retail		—			31,688		31,688
Indirect sales		176,116			—		176,116
Total loans		634,424			55,125		689,549
Less: Unearned interest, fees and deferred cost		(290	)		4,357		4,067
Allowance for loan and lease losses		6,464			1,262		7,726
Net loans	$	628,250		$	49,506	$	677,756

	December 31, 2020
	Bank			ALC		Total
	(Dollars in Thousands)
Real estate loans:
Construction, land development and other land loans	$	37,282		$	—	$	37,282
Secured by 1-4 family residential properties		85,271			3,585		88,856
Secured by multi-family residential properties		54,326			—		54,326
Secured by non-farm, non-residential properties		184,528			—		184,528
Commercial and industrial loans ⁽¹⁾		81,735			—		81,735
Consumer loans:
Direct consumer		6,344			23,444		29,788
Branch retail		—			32,094		32,094
Indirect sales		141,514			—		141,514
Total loans		591,000			59,123		650,123
Less: Unearned interest, fees and deferred cost		(213	)		4,492		4,279
Allowance for loan and lease losses		5,917			1,553		7,470
Net loans	$	585,296		$	53,078	$	638,374

The Company makes commercial, real estate and installment loans to its customers. Although the Company has a diversified loan portfolio, 54.7% and 56.1% of the portfolio was concentrated in loans secured by real estate as of June 30, 2021 and December 31, 2020, respectively.

Loans with a carrying value of $58.6 million and $36.1 million were pledged as collateral to secure Federal Home Loan Bank (“FHLB”) borrowings as of June 30, 2021 and December 31, 2020, respectively.

In the ordinary course of business, the Bank makes loans to certain officers and directors of the Company, including companies with which they are associated. These loans are made on the same terms as those prevailing for comparable transactions with unrelated parties. Management believes that such loans do not represent more than a normal risk of collectability, nor do they present other unfavorable features. The aggregate balances of such related party loans and commitments were $0.3 million and $0.4 million as of June 30, 2021 and December 31, 2020, respectively. During the six months ended June 30, 2021, there were no new loans to these parties, and repayments by active related parties were $0.1 million. During the year ended December 31, 2020, there were no new loans to these parties, and repayments by active related parties were $0.5 million.

The following tables present changes in the allowance for loan and lease losses during the six months ended June 30, 2021 and 2020 and the related loan balances by loan type as of June 30, 2021 and 2020:

	As of and for the Six Months Ended June 30, 2021
	Construction, Land Development, and Other			1-4 Family			Real Estate Multi- Family			Non- Farm Non- Residential		Commercial and Industrial			Direct Consumer			Branch Retail			Indirect Sales			Total
	(Dollars in Thousands)
Allowance for loan and lease losses:
Beginning balance	$	393		$	639		$	577		$	1,566	$	1,008		$	1,202		$	373		$	1,712		$	7,470
Charge-offs		(22	)		(5	)		—			—		—			(626	)		(222	)		(310	)		(1,185	)
Recoveries		21			6			—			3		9			369			107			27			542
Provision		80			112			(66	)		346		(324	)		14			66			671			899
Ending balance	$	472		$	752		$	511		$	1,915	$	693		$	959		$	324		$	2,100		$	7,726
Ending balance of allowance attributable to loans:
Individually evaluated for impairment	$	—		$	11		$	—		$	—	$	59		$	—		$	—		$	—		$	70
Collectively evaluated for impairment		472			741			511			1,915		634			959			324			2,100			7,656
Total allowance for loan and lease losses	$	472		$	752		$	511		$	1,915	$	693		$	959		$	324		$	2,100		$	7,726
Ending balance of loans receivable:
Individually evaluated for impairment	$	—		$	687		$	—		$	1,056	$	58		$	22		$	—		$	—		$	1,823
Collectively evaluated for impairment		53,425			78,120			53,811			190,342		77,301			26,915			31,688			176,116			687,718
Loans acquired with deteriorated credit quality		—			8			—			—		—			—			—			—			8
Total loans receivable	$	53,425		$	78,815		$	53,811		$	191,398	$	77,359		$	26,937		$	31,688		$	176,116		$	689,549

	As of and for the Six Months Ended June 30, 2020
	Construction, Land Development, and Other		1-4 Family			Real Estate Multi- Family		Non- Farm Non- Residential		Commercial and Industrial			Direct Consumer			Branch Retail			Indirect Sales			Total
	(Dollars in Thousands)
Allowance for loan and lease losses:
Beginning balance	$	197	$	466		$	422	$	964	$	1,377		$	1,625		$	395		$	316		$	5,762
Charge-offs		—		(42	)		—		—		—			(962	)		(221	)		(38	)		(1,263	)
Recoveries		—		14			—		8		—			381			90			1			494
Provision		72		84			70		272		(448	)		373			211			796			1,430
Ending balance	$	269	$	522		$	492	$	1,244	$	929		$	1,417		$	475		$	1,075		$	6,423
Ending balance of allowance attributable to loans:
Individually evaluated for impairment	$	—	$	13		$	—	$	—	$	62		$	3		$	—		$	—		$	78
Collectively evaluated for impairment		269		509			492		1,244		867			1,414			475			1,075			6,345
Total allowance for loan and lease losses	$	269	$	522		$	492	$	1,244	$	929		$	1,417		$	475		$	1,075		$	6,423
Ending balance of loans receivable:
Individually evaluated for impairment	$	—	$	785		$	—	$	2,748	$	62		$	25		$	—		$	—		$	3,620
Collectively evaluated for impairment		31,384		92,058			48,807		157,935		87,709			33,274			33,000			89,932			574,099
Loans acquired with deteriorated credit quality		—		167			—		—		—			—			—			—			167
Total loans receivable	$	31,384	$	93,010		$	48,807	$	160,683	$	87,771		$	33,299		$	33,000		$	89,932		$	577,886

The Company utilizes a credit grading system that provides a uniform framework for establishing and monitoring credit risk in the loan portfolio. Under this system, construction, land, multi-family real estate, other commercial real estate, and commercial and industrial loans are graded based on pre-determined risk metrics and categorized into one of nine risk grades. These risk grades can be summarized into categories described as pass, special mention, substandard, doubtful and loss, as described in further detail below.

Because residential real estate and consumer loans are more uniform in nature, each loan is categorized into one of two risk grades, depending on whether the loan is considered to be performing or nonperforming. Performing loans are loans that are paying principal and interest in accordance with a contractual agreement. Nonperforming loans are loans that have demonstrated characteristics that indicate a probability of loss.

The tables below illustrate the carrying amount of loans by credit quality indicator as of June 30, 2021:

	June 30, 2021
	Pass 1-5			Special Mention 6			Substandard 7			Total
	(Dollars in Thousands)
Loans secured by real estate:
Construction, land development and other land loans	$	51,303		$	2,120		$	2		$	53,425
Secured by multi-family residential properties		51,270			2,541			—			53,811
Secured by non-farm, non-residential properties		178,582			11,777			1,039			191,398
Commercial and industrial loans		76,212			480			667			77,359
Total	$	357,367		$	16,918		$	1,708		$	375,993
As a percentage of total loans		95.05	%		4.50	%		0.45	%		100.00	%

	June 30, 2021
	Performing			Nonperforming			Total
	(Dollars in Thousands)
Loans secured by real estate:
Secured by 1-4 family residential properties	$	77,428		$	1,387		$	78,815
Consumer loans:
Direct consumer		26,913			24			26,937
Branch retail		31,688			—			31,688
Indirect sales		176,116			—			176,116
Total	$	312,145		$	1,411		$	313,556
As a percentage of total loans		99.55	%		0.45	%		100.00	%

The tables below illustrate the carrying amount of loans by credit quality indicator as of December 31, 2020:

	December 31, 2020
	Pass 1-5			Special Mention 6			Substandard 7			Total
	(Dollars in Thousands)
Loans secured by real estate:
Construction, land development and other land loans	$	36,719		$	558		$	5		$	37,282
Secured by multi-family residential properties		54,326			—			—			54,326
Secured by non-farm, non-residential properties		170,338			8,572			5,618			184,528
Commercial and industrial loans		79,754			542			1,439			81,735
Total	$	341,137		$	9,672		$	7,062		$	357,871
As a percentage of total loans		95.33	%		2.70	%		1.97	%		100.00	%

	December 31, 2020
	Performing			Nonperforming			Total
	(Dollars in Thousands)
Loans secured by real estate:
Secured by 1-4 family residential properties	$	86,665		$	2,191		$	88,856
Consumer loans:
Direct consumer		29,679			109			29,788
Branch retail		31,816			278			32,094
Indirect sales		141,514			—			141,514
Total	$	289,674		$	2,578		$	292,252
As a percentage of total loans		99.12	%		0.88	%		100.00	%

The following table provides an aging analysis of past due loans by class as of June 30, 2021:

	As of June 30, 2021
	30-59 Days Past Due			60-89 Days Past Due			90 Days Or Greater			Total Past Due			Current			Total Loans			Recorded Investment > 90 Days And Accruing
	(Dollars in Thousands)
Loans secured by real estate:
Construction, land development and other land loans	$	—		$	—		$	—		$	—		$	53,425		$	53,425		$	—
Secured by 1-4 family residential properties		196			14			79			289			78,526			78,815			—
Secured by multi-family residential properties		—			—			—			—			53,811			53,811			—
Secured by non-farm, non-residential properties		12			—			—			12			191,386			191,398			—
Commercial and industrial loans		24			6			284			314			77,045			77,359			—
Consumer loans:
Direct consumer		161			90			64			315			26,622			26,937			—
Branch retail		101			27			67			195			31,493			31,688			—
Indirect sales		112			36			55			203			175,913			176,116			—
Total	$	606		$	173		$	549		$	1,328		$	688,221		$	689,549		$	—
As a percentage of total loans		0.09	%		0.03	%		0.08	%		0.19	%		99.81	%		100.00	%

The following table provides an aging analysis of past due loans by class as of December 31, 2020:

	As of December 31, 2020
	30-59 Days Past Due			60-89 Days Past Due			90 Days Or Greater			Total Past Due			Current			Total Loans			Recorded Investment > 90 Days And Accruing
	(Dollars in Thousands)
Loans secured by real estate:
Construction, land development and other land loans	$	—		$	—		$	—		$	—		$	37,282		$	37,282		$	—
Secured by 1-4 family residential properties		799			244			72			1,115			87,741			88,856			—
Secured by multi-family residential properties		—			—			—			—			54,326			54,326			—
Secured by non-farm, non-residential properties		287			—			1,337			1,624			182,904			184,528			—
Commercial and industrial loans		683			561			—			1,244			80,491			81,735			—
Consumer loans:
Direct consumer		257			191			214			662			29,126			29,788			—
Branch retail		176			61			144			381			31,713			32,094			—
Indirect sales		234			39			49			322			141,192			141,514			—
Total	$	2,436		$	1,096		$	1,816		$	5,348		$	644,775		$	650,123		$	—
As a percentage of total loans		0.37	%		0.17	%		0.28	%		0.82	%		99.18	%		100.00	%

The following table provides an analysis of non-accruing loans by class as of June 30, 2021 and December 31, 2020:

In accordance with section 4013 of the Coronavirus Aid, Relief and Economic Security (CARES) Act and interpretive guidance from banking regulators, in 2020 the Company implemented initiatives to provide short-term payment relief to borrowers who were negatively impacted by COVID-19. As of June 30, 2021, loans that continued to be in pandemic-related deferment totaled $0.6 million, compared to $8.1 million as of December 31, 2020.

In addition, at the onset of the pandemic, management identified certain categories of loans that it believed to be at “high-risk” of potential default or credit loss due to the COVID-19 pandemic. The “high-risk” category, which includes loans collateralized by hotels/motels and dine-in restaurants, decreased to $12.0 million, or 1.7% of the loan portfolio, as of June 30, 2021, compared to $13.5 million, or 2.1% of the loan portfolio, as of December 31, 2020.

The spread of COVID-19 has created a global public health crisis that has resulted in widespread volatility and deterioration in household, business, economic and market conditions. Although loans in deferment status and loans in the “high-risk” category have decreased, the Company will continue to closely monitor the impact of changing economic circumstances on the Company’s loan portfolio.

Sections 1102 and 1106 of the CARES Act added a new loan program administered by the Small Business Administration (“SBA”) entitled the Paycheck Protection Program (“PPP”). The PPP is intended to provide economic relief to small businesses throughout the United States that have been adversely impacted by COVID-19. PPP loans are 100% guaranteed by the SBA and are forgivable in whole or in part if the proceeds are used by the borrower for payroll and other permitted purposes in accordance with the requirements of the PPP (as discussed in greater detail below). If not forgiven in whole or in part, the loans carry a fixed interest rate of 1.00% per annum with payments deferred for 24 weeks from the date of the loan, plus another 10 months after the 24-week period. As compensation for originating a PPP loan, the Company receives lender processing fees from the SBA ranging from 1% to 5% of the original loan balance, depending on the size of the loan. Processing fees, net of origination costs, are deferred and amortized over the contractual life of the loan as interest income. Upon forgiveness of a loan by the SBA, any unrecognized net deferred fees will be recognized as interest income in that period.

PPP loans were initially originated for a term of two years; however, a June 5, 2020 amendment to the CARES Act (i) provided for a five-year minimum loan term for loans originated after that date and (ii) permitted lenders and borrowers to amend loans previously issued under two-year terms to provide for terms of five to ten years if mutually agreed upon by both the lender and the borrower. As of June 30, 2021, 151 PPP loans with an aggregate principal balance of $11.6 million remained outstanding. Of this amount, $5.8 million of the loans were originated under two-year terms, and $5.8 million of the loans were originated under five-year terms.

A borrower is eligible for forgiveness of principal and accrued interest on its PPP loan to the extent that the proceeds were used to cover eligible payroll costs, interest costs, rent and utility costs over a period of between eight and twenty-four weeks after the loan is made, as long as the borrower retains its employees and their compensation levels. The SBA began processing forgiveness payments during the fourth quarter of 2020. As of June 30, 2021, 120 of the Company’s borrowers had received PPP loan forgiveness. Amortized PPP loan fees, which are recognized in interest and fees on loans, totaled approximately $242 thousand for the six months ended June 30, 2021 and $161 thousand for the year ended December 31, 2020. As of June 30, 2021, the Company had approximately $344 thousand in remaining net deferred SBA PPP loan fees.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the related loan agreement. If a loan is impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the liquidation of the collateral. At the Bank, all loans of $0.5 million or more that have a credit quality risk grade of seven or above are identified for impairment analysis. At management’s discretion, additional loans may be impaired based on homogeneous factors such as changes in the nature and volume of the portfolio, portfolio quality, adequacy of the underlying collateral value, loan concentrations, historical charge-off trends and economic conditions that may affect the borrower’s ability to pay. At ALC, all loans of $50 thousand or more that are 90 days or more past due are identified for impairment analysis. As of both June 30, 2021 and December 31, 2020, there were $0.1 million of impaired loans with no related allowance recorded at ALC. Impaired loans, or portions thereof, are charged off when deemed uncollectable.

As of June 30, 2021, the carrying amount of the Company’s impaired loans consisted of the following:

	June 30, 2021
	Carrying Amount		Unpaid Principal Balance		Related Allowances
	(Dollars in Thousands)
Impaired loans with no related allowance recorded
Loans secured by real estate
Construction, land development and other land loans	$	—	$	—	$	—
Secured by 1-4 family residential properties		678		678		—
Secured by multi-family residential properties		—		—		—
Secured by non-farm, non-residential properties		1,056		1,056		—
Commercial and industrial		—		—		—
Direct consumer		22		22		—
Total loans with no related allowance recorded	$	1,756	$	1,756	$	—
Impaired loans with an allowance recorded
Loans secured by real estate
Construction, land development and other land loans	$	—	$	—	$	—
Secured by 1-4 family residential properties		17		17		11
Secured by multi-family residential properties		—		—		—
Secured by non-farm, non-residential properties		—		—		—
Commercial and industrial		58		58		59
Direct consumer		—		—		—
Total loans with an allowance recorded	$	75	$	75	$	70
Total impaired loans
Loans secured by real estate
Construction, land development and other land loans	$	—	$	—	$	—
Secured by 1-4 family residential properties		695		695		11
Secured by multi-family residential properties		—		—		—
Secured by non-farm, non-residential properties		1,056		1,056		—
Commercial and industrial		58		58		59
Direct consumer		22		22		—
Total impaired loans	$	1,831	$	1,831	$	70

As of December 31, 2020, the carrying amount of the Company’s impaired loans consisted of the following:

	December 31, 2020
	Carrying Amount		Unpaid Principal Balance		Related Allowances
	(Dollars in Thousands)
Impaired loans with no related allowance recorded
Loans secured by real estate
Construction, land development and other land loans	$	—	$	—	$	—
Secured by 1-4 family residential properties		885		885		—
Secured by multi-family residential properties		—		—		—
Secured by non-farm, non-residential properties		5,594		5,594		—
Commercial and industrial		530		530		—
Direct consumer		—		—		—
Total loans with no related allowance recorded	$	7,009	$	7,009	$	—
Impaired loans with an allowance recorded
Loans secured by real estate
Construction, land development and other land loans	$	—	$	—	$	—
Secured by 1-4 family residential properties		18		18		12
Secured by multi-family residential properties		—		—		—
Secured by non-farm, non-residential properties		—		—		—
Commercial and industrial		60		60		61
Direct consumer		24		24		1
Total loans with an allowance recorded	$	102	$	102	$	74
Total impaired loans
Loans secured by real estate	.
Construction, land development and other land loans	$	—	$	—	$	—
Secured by 1-4 family residential properties		903		903		12
Secured by multi-family residential properties		—		—		—
Secured by non-farm, non-residential properties		5,594		5,594		—
Commercial and industrial		590		590		61
Direct consumer		24		24		1
Total impaired loans	$	7,111	$	7,111	$	74

The average net investment in impaired loans and interest income recognized and received on impaired loans during the six months ended June 30, 2021 and the year ended December 31, 2020 were as follows:

	Six Months Ended June 30, 2021
	Average Recorded Investment		Interest Income Recognized		Interest Income Received
	(Dollars in Thousands)
Loans secured by real estate
Construction, land development and other land loans	$	—	$	—	$	—
Secured by 1-4 family residential properties		868		25		25
Secured by multi-family residential properties		—		—		—
Secured by non-farm, non-residential properties		3,700		115		83
Commercial and industrial		433		19		17
Direct consumer		23		1		2
Total	$	5,024	$	160	$	127

	Year Ended December 31, 2020
	Average Recorded Investment		Interest Income Recognized		Interest Income Received
	(Dollars in Thousands)
Loans secured by real estate
Construction, land development and other land loans	$	—	$	—	$	—
Secured by 1-4 family residential properties		923		10		10
Secured by multi-family residential properties		—		—		—
Secured by non-farm, non-residential properties		2,467		28		28
Commercial and industrial		118		7		7
Direct consumer		25		1		2
Total	$	3,533	$	46	$	47

Loans on which the accrual of interest has been discontinued amounted to $1.3 million and $3.1 million as of June 30, 2021 and December 31, 2020, respectively. If interest on those loans had been accrued, there would have been $39 thousand and $161 thousand of interest accrued for the periods ended June 30, 2021 and December 31, 2020, respectively. Interest income related to these loans for the six months ended June 30, 2021 and the year ended December 31, 2020 was $17 thousand and $42 thousand, respectively.

Troubled debt restructurings include loans with respect to which concessions have been granted to borrowers that generally would not have otherwise been considered had the borrowers not been experiencing financial difficulty. The concessions granted may include payment schedule modifications, interest rate reductions, maturity date extensions, modifications of note structure, principal balance reductions or some combination of these concessions. There were two loans with balances totaling $6.5 million modified with concessions granted during the six months ended June 30, 2021 and no loans modified with concessions granted during the year ended December 31, 2020. Restructured loans may involve loans remaining on non-accrual, moving to non-accrual or continuing on accrual status, depending on the individual facts and circumstances of the borrower. Non-accrual restructured loans are included with all other non-accrual loans. In addition, all accruing restructured loans are reported as troubled debt restructurings. Generally, restructured loans remain on non-accrual until the customer has attained a sustained period of repayment performance under the modified loan terms (generally a minimum of six months). However, performance prior to the restructuring, or significant events that coincide with the restructuring, are considered in assessing whether the borrower can meet the new terms and whether the loan should be returned to or maintained on non-accrual status. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, then the loan remains on non-accrual. The Company did not have any non-accruing loans that were previously restructured and that remained on non-accrual status as of both June 30, 2021 and December 31, 2020. For both the six months ended June 30, 2021 and the year ended December 31, 2020, the Company had no loans that were restored to accrual status based on a sustained period of repayment performance.

The following table provides, as of June 30, 2021 and December 31, 2020, the number of loans remaining in each loan category that the Company had previously modified in a troubled debt restructuring, as well as the pre- and post-modification principal balance as of each date.

	June 30, 2021						December 31, 2020
	Number of Loans		Pre- Modification Outstanding Principal Balance		Post- Modification Principal Balance		Number of Loans		Pre- Modification Outstanding Principal Balance		Post- Modification Principal Balance
	(Dollars in Thousands)
Loans secured by real estate:
Construction, land development and other land loans		1	$	107	$	—		1	$	107	$	—
Secured by 1-4 family residential properties		2		59		12		2		59		12
Secured by non-farm, non-residential properties		2		621		621		—		—		—
Commercial loans		2		116		35		2		116		39
Total		7	$	903	$	668		5	$	282	$	51

As of June 30, 2021 and December 31, 2020, no loans that previously had been modified in a troubled debt restructuring had defaulted subsequent to modification.

Restructured loan modifications primarily included maturity date extensions and payment schedule modifications. There were no modifications to principal balances of the loans that were restructured. Accordingly, there was no impact on the Company’s allowance for loan and lease losses resulting from the modifications.

All loans with a principal balance of $0.5 million or more that have been modified in a troubled debt restructuring are considered impaired and evaluated individually for impairment. The nature and extent of impairment of restructured loans, including those that have experienced a subsequent payment default, are considered in the determination of an appropriate level of allowance for loan and lease losses. This evaluation resulted in an allowance for loan and lease losses attributable to such restructured loans of $7 thousand and $1 thousand as of June 30, 2021 and December 31, 2020, respectively.