Note 4. Loans

Loan segments and classes at June 30, 2021 and 2020 are summarized as follows:

	At June 30,
(In thousands)	2021			2020
Residential real estate:
Residential real estate	$	325,167		$	279,332
Residential construction and land		10,185			11,847
Multi-family		41,951			25,104
Commercial real estate:
Commercial real estate		472,887			381,415
Commercial construction		62,763			74,920
Consumer loan:
Home equity		18,285			22,106
Consumer installment		4,942			4,817
Commercial loans		172,228			213,119
Total gross loans		1,108,408			1,012,660
Allowance for loan losses		(19,668	)		(16,391	)
Deferred (fees) and costs		(2,793	)		(2,747	)
Loans receivable, net	$	1,085,947		$	993,522

At June 30, 2021 and 2020, loans to related parties including officers and directors were immaterial as a percentage of our loan portfolio.

The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, was signed into law on March 27, 2020, and provides over $2.0 trillion in emergency economic relief to individuals and businesses impacted by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration (“SBA”) to temporarily guarantee loans under a new 7(a) loan program called the Paycheck Protection Program (“PPP”). An eligible business could apply for a PPP loan up to the greater of: (1) 2.5 times its average monthly “payroll costs”; or (2) $10.0 million. PPP loans have: (a) an interest rate of 1.0%, (b) a 2-5 year loan term to maturity, and (c) principal and interest payments deferred for six months from the date of disbursement. The Consolidated Appropriations Act (“CAA”) was signed into law on December 27, 2020. The CAA, extended the life of the PPP, creating a second round of PPP loans for eligible businesses. The Company participated in the CAA’s second round of PPP lending. The SBA guarantees 100% of the PPP loans made to eligible borrowers. The entire principal amount of the borrower’s PPP loan, including any accrued interest, is eligible to be reduced by the loan forgiveness amount under the PPP so long as employee and compensation levels of the business are maintained and at least 60% of the loan proceeds are used for payroll expenses, with the remaining 40%, or less, of the loan proceeds used for other qualifying expenses. The Bank of Greene County originated these loans to support local businesses for fiscal year ended June 30, 2021 and 2020. The Company disbursed 1,003 and 1,267 PPP loans totaling $62.0 million and $99.8 million during the years ended June 30, 2021 and 2020, respectively. The Company received fees from the SBA for originating these loans totaling $3.5 million and $3.9 million for the years ended June 30, 2021 and 2020, respectively. These fees have been deferred and will be recognized in income on a level-yield basis as the loans are repaid or forgiven by the SBA. As of the fiscal year ended June 30, 2021, the Company recognized $4.1 million in fee income and did not recognize any income as of the fiscal year ended June 30, 2020.

Loans serving as collateral

Loans designated as qualified collateral and pledged for borrowing and stand-by letters of credit to the Federal Home Loan Bank of New York (“FHLB”) amounted to approximately $405.3 million and $321.5 million of its residential and commercial mortgage portfolios, respectively.

Credit Quality Indicators

Management closely monitors the quality of the loan portfolio and has established a loan review process designed to help grade the quality and profitability of the Company’s loan portfolio. The credit quality grade helps management make a consistent assessment of each loan relationship’s credit risk. Consistent with regulatory guidelines, The Bank of Greene County provides for the classification of loans considered being of lesser quality. Such ratings coincide with the “Substandard,” “Doubtful” and “Loss” classifications used by federal regulators in their examination of financial institutions. Generally, an asset is considered Substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. Substandard assets include those characterized by the distinct possibility that the insured financial institution will sustain some loss if the deficiencies are not corrected. Assets classified as Doubtful have all the weaknesses inherent in assets classified Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable. Assets classified as Loss are those considered uncollectible and of such little value that their continuance as assets without the establishment of a full loss reserve and/or charge-off is not warranted. Assets that do not currently expose the Company to sufficient risk to warrant classification in one of the aforementioned categories but otherwise possess weaknesses are designated “Special Mention.”

When The Bank of Greene County classifies problem assets as either Substandard or Doubtful, it generally establishes a specific valuation allowance or “loss reserve” in an amount deemed prudent by management. General allowances represent loss allowances that have been established to recognize the inherent risk associated with lending activities, but which, unlike specific allowances, have not been allocated to particular loans. When The Bank of Greene County identifies problem loans as being impaired, it is required to evaluate whether the Bank will be able to collect all amounts due either through repayments or the liquidation of the underlying collateral. If it is determined that impairment exists, the Bank is required either to establish a specific allowance for losses equal to the amount of impairment of the assets, or to charge-off such amount. The Bank of Greene County’s determination as to the classification of its loans and the amount of its valuation allowance is subject to review by its regulatory agencies, which can order the establishment of additional general or specific loss allowances. The Bank of Greene County reviews its portfolio quarterly to determine whether any assets require classification in accordance with applicable regulations.

The Bank primarily has four segments within its loan portfolio that it considers when measuring credit quality: residential real estate loans, commercial real estate loans, consumer loans and commercial loans. The residential real estate portfolio consists of residential, construction, and multi-family loan classes. Commercial real estate loans consist of commercial real estate and commercial construction loan classes. Consumer loans consist of home equity loan and consumer installment loan classes. The inherent risk within the loan portfolio varies depending upon each of these loan types.

Residential mortgage loans, including home equity loans, which are collateralized by residences are generally made in amounts up to 85.0% of the appraised value of the property. In the event of default by the borrower, The Bank of Greene County will acquire and liquidate the underlying collateral. By originating the loan at a loan-to-value ratio of 85.0% or less, The Bank of Greene County limits its risk of loss in the event of default. However, the market values of the collateral may be adversely impacted by declines in the economy. Home equity loans may have an additional inherent risk if The Bank of Greene County does not hold the first mortgage. The Bank of Greene County may stand in a secondary position in the event of collateral liquidation resulting in a greater chance of insufficiency to meet all obligations.

Construction lending generally involves a greater degree of risk than other residential mortgage lending. The repayment of the construction loan is, to a great degree, dependent upon the successful and timely completion of the construction of the subject property within specified cost limits. The Bank of Greene County completes inspections during the construction phase prior to any disbursements. The Bank of Greene County limits its risk during the construction as disbursements are not made until the required work for each advance has been completed. Construction delays may further impair the borrower’s ability to repay the loan.

Loans collateralized by commercial real estate, and multi-family dwellings, such as apartment buildings generally are larger than residential loans and involve a greater degree of risk. Commercial real estate loans often involve large loan balances to single borrowers or groups of related borrowers. Payments on these loans depend to a large degree on the results of operations and management of the properties or underlying businesses, and may be affected to a greater extent by adverse conditions in the real estate market or the economy in general. Accordingly, the nature of commercial real estate loans makes them more difficult for management to monitor and evaluate.

Consumer loans generally have shorter terms and higher interest rates than residential mortgage loans. In addition, consumer loans expand the products and services offered by The Bank of Greene County to better meet the financial services needs of its customers. Consumer loans generally involve greater credit risk than residential mortgage loans because of the difference in the nature of the underlying collateral. Repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance because of the greater likelihood of damage, loss or depreciation in the underlying collateral. The remaining deficiency often does not warrant further substantial collection efforts against the borrower beyond obtaining a deficiency judgment. In addition, consumer loan collections depend on the borrower’s personal financial stability. Furthermore, the application of various federal and state laws, including federal and state bankruptcy and insolvency laws, may limit the amount that can be recovered on such loans.

Commercial lending generally involves greater risk than residential mortgage lending and involves risks that are different from those associated with residential and commercial real estate mortgage lending. Real estate lending is generally considered to be collateral-based, with loan amounts based on fixed loan-to-collateral values, and liquidation of the underlying real estate collateral is viewed as the primary source of repayment in the event of borrower default. Although commercial loans may be collateralized by equipment or other business assets, the liquidation of collateral in the event of a borrower default is often an insufficient source of repayment because equipment and other business assets may be obsolete or of limited use, among other things. Accordingly, the repayment of a commercial loan depends primarily on the creditworthiness of the borrower (and any guarantors), while liquidation of collateral is a secondary and often insufficient source of repayment. The Bank of Greene County has formed relationships with other community banks within our region to participate in larger commercial loan relationships. These types of loans are generally considered to be riskier due to the size and complexity of the loan relationship. By entering into a participation agreement with the other bank, The Bank of Greene County can obtain the loan relationship while limiting its exposure to credit loss. Management completes its due diligence in underwriting these loans and monitors the servicing of these loans. During the years ended June 30, 2021 and June 30, 2020, The Bank of Greene County originated PPP loans in accordance with the CARES Act, which are unsecured commercial loans and are 100% guaranteed by the Small Business Administration.

Loan balances by internal credit quality indicator as of June 30, 2021 are shown below.

(In thousands)	Performing		Special Mention		Substandard		Total
Residential real estate	$	321,826	$	88	$	3,253	$	325,167
Residential construction and land		10,185		-		-		10,185
Multi-family		41,589		-		362		41,951
Commercial real estate		441,004		9,690		22,193		472,887
Commercial construction		55,819		5,944		1,000		62,763
Home equity		17,727		-		558		18,285
Consumer installment		4,942		-		-		4,942
Commercial loans		165,649		963		5,616		172,228
Total gross loans	$	1,058,741	$	16,685	$	32,982	$	1,108,408

Loan balances by internal credit quality indicator as of June 30, 2020 are shown below.

(In thousands)	Performing		Special Mention		Substandard		Total
Residential real estate	$	275,599	$	996	$	2,737	$	279,332
Residential construction and land		11,847		-		-		11,847
Multi-family		23,336		1,645		123		25,104
Commercial real estate		364,884		13,189		3,342		381,415
Commercial construction		67,844		6,974		102		74,920
Home equity		21,466		-		640		22,106
Consumer installment		4,817		-		-		4,817
Commercial loans		210,081		2,675		363		213,119
Total gross loans	$	979,874	$	25,479	$	7,307	$	1,012,660

The Company had no loans classified doubtful or loss at June 30, 2021 or June 30, 2020. During the year ended June 30, 2021, the Company further downgraded construction, commercial real estate and commercial loans from pass and special mention to substandard due to deterioration in borrower cash flows, delinquent payments and further financial deterioration or not improving financial performance. Management continues to monitor these loan relationships closely. In total there were 11 commercial real estate loan relationships, 11 commercial loan relationships and 1 commercial construction loan relationship that have been downgraded to special mention, and there were 3 commercial real estate loan relationships, 4 commercial loan relationships and 1 commercial construction loan relationship that have been downgraded to substandard during the year ended June 30, 2021. At June 30, 2021, these loans were all performing. Management continues to monitor these loan relationships closely.

The table below detail loans that have been modified as a troubled debt restructuring during the year ended June 30, 2021.

(Dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Current Outstanding Recorded Investment
For the year ended June 30, 2021
Commercial loans		5	$	3,001	$	2,903	$	2,896
Commercial real estate		3		1,325		1,287		1,284
Residential		1		70		70		69

During the year ended June 30, 2021, there were four commercial loans and two commercial real estate loans that were modified to reduce the interest rate and the maturity date was extended, thereby reducing the monthly payments for the borrower. There was one commercial loan, one commercial real estate loan, and one residential loan which the maturity date was extended, thereby reducing the monthly payments for the borrower. The Company recognized a partial charge-off on one commercial loan and one commercial real estate loan during the year ended June 30, 2021. There were no loans that had been modified as a troubled debt restructuring during the twelve months prior to June 30, 2020 or 2019, which have subsequently defaulted during the twelve months ended June 30, 2021 or 2020, respectively. There were no loans modified as a trouble debt restructuring during the year ended June 30, 2020.

In order to assist borrowers through the COVID-19 pandemic, The Bank of Greene County has instituted a loan deferment program whereby deferral of payments were provided. Payment deferrals consisted of either principal deferrals or full payment deferrals. As allowed under the CARES Act, and as amended by Section 541 of the Consolidated Appropriations Act of 2021, the Company will not report these loans as delinquent and Trouble Debt Restructuring disclosures. The Company will continue to recognize interest income during the deferral period as long as they are deemed collectible. These loans will be closely monitored to determine collectability and accrual and delinquency status will be updated as deemed appropriate. The following table details loans that have payments deferred as of June 30, 2021.

	Full Payment Deferral					Principal Payment Deferral					Total Deferral
(Dollars in thousands)	Balance			Number of Loans		Balance			Number of Loans		Balance			Number of Loans

Commercial real estate			6,119		3			1,346		3			7,465		6
Commercial loans			572		2			-		-			572		2
Total		$	6,691		5		$	1,346		3		$	8,037		8

Nonaccrual Loans

Management places loans on nonaccrual status once the loans have become 90 days or more delinquent. A nonaccrual loan is defined as a loan in which collectability is questionable and therefore interest on the loan will no longer be recognized on an accrual basis. A loan is not placed back on accrual status until the borrower has demonstrated the ability and willingness to make timely payments on the loan. A loan does not have to be 90 days delinquent in order to be classified as nonaccrual. Loans on nonaccrual status totaled $2.3 million at June 30, 2021 of which $260,000 were in the process of foreclosure. At June 30, 2021, there were two residential loans totaling $158,000 and one commercial real estate loan for $102,000 in the process of foreclosure. Included in nonaccrual loans were $1.2 million of loans which were less than 90 days past due at June 30, 2021, but have a recent history of delinquency greater than 90 days past due. These loans will be returned to accrual status once they have demonstrated a history of timely payments. Loans on nonaccrual status totaled $4.1 million at June 30, 2020 of which $1.3 million were in the process of foreclosure. At June 30, 2020, there were eight residential loans in the process of foreclosure totaling $1.0 million. Included in nonaccrual loans were $1.4 million of loans which were less than 90 days past due at June 30, 2020, but have a recent history of delinquency greater than 90 days past due. These loans will be returned to accrual status once they have demonstrated a history of timely payments.

The following table sets forth information regarding delinquent and/or nonaccrual loans as of June 30, 2021:

(In thousands)	30-59 days past due		60-89 days past due		90 days or more past due		Total past due				Current		Total Loans		Loans on Non-accrual
Residential real estate	$	-	$	630	$	650	$	1,280	$	$		323,887	$	325,167	$	1,324
Residential construction and land		-		-		-		-				10,185		10,185		-
Multi-family		-		-		-		-				41,951		41,951		-
Commercial real estate		-		5,266		123		5,389				467,498		472,887		444
Commercial construction		-		-		-		-				62,763		62,763		-
Home equity		33		40		224		297				17,988		18,285		237
Consumer installment		26		13		-		39				4,903		4,942		-
Commercial loans		-		230		117		347				171,881		172,228		296
Total gross loans	$	59	$	6,179	$	1,114	$	7,352	$	$		1,101,056	$	1,108,408	$	2,301

The following table sets forth information regarding delinquent and/or nonaccrual loans as of June 30, 2020:

(In thousands)	30-59 days past due		60-89 days past due		90 days or more past due		Total past due		Current		Total Loans		Loans on Non-accrual
Residential real estate	$	871	$	345	$	1,691	$	2,907	$	276,425	$	279,332	$	2,513
Residential construction and land		-		-		-		-		11,847		11,847		-
Multi-family		-		-		151		151		24,953		25,104		151
Commercial real estate		393		189		374		956		380,459		381,415		781
Commercial construction		-		-		-		-		74,920		74,920		-
Home equity		29		-		238		267		21,839		22,106		319
Consumer installment		36		25		-		61		4,756		4,817		-
Commercial loans		48		72		245		365		212,754		213,119		313
Total gross loans	$	1,377	$	631	$	2,699	$	4,707	$	1,007,953	$	1,012,660	$	4,077

The Bank of Greene County had no accruing loans delinquent 90 days or more at June 30, 2021 and June 30, 2020. The borrowers have made arrangements with the Bank to bring the loans current within a specified time period and have made a series of payments as agreed. The increase from June 30, 2020 to June 30, 2021 in 60-89 days past due for commercial real estate was attributable to one large loan that is classified as substandard.

The table below details additional information related to nonaccrual loans:

(In thousands)	2021		2020
Interest income that would have been recorded if loans had been performing in accordance with original terms	$	188	$	296
Interest income that was recorded on nonaccrual loans		134		193

Impaired Loan Analysis

The Company identifies impaired loans and measures the impairment in accordance with FASB ASC subtopic “Receivables – Loan Impairment.” Management may consider a loan impaired once it is classified as nonaccrual and when it is probable that the borrower will be unable to repay the loan according to the original contractual terms of the loan agreement or the loan is restructured in a troubled debt restructuring. It should be noted that management does not evaluate all loans individually for impairment. Generally, The Bank of Greene County considers residential mortgages, home equity loans and installment loans as small, homogeneous loans, which are evaluated for impairment collectively based on historical loan experience and other factors. In contrast, large commercial mortgage, construction, multi-family, business loans and select larger balance residential mortgage loans or nonaccrual loans that are over $100 thousand and all trouble debt restructured loans are reviewed individually and considered impaired if it is probable that The Bank of Greene County will not be able to collect scheduled payments of principal and interest when due, according to the contractual terms of the loan agreement. The measurement of impaired loans is generally based on the fair value of the underlying collateral. The majority of The Bank of Greene County loans, including most nonaccrual loans, are small homogeneous loan types adequately supported by collateral. Management considers the payment status of loans in the process of evaluating the adequacy of the allowance for loan losses among other factors. Based on this evaluation, a delinquent loan’s risk rating may be downgraded to either pass-watch, special mention, or substandard, and the allocation of the allowance for loan loss is based upon the risk associated with such designation.

The tables below detail additional information on impaired loans at the date or periods indicated:

	As of June 30, 2021						For the year ended June 30, 2021
(In thousands)	Recorded Investment		Unpaid Principal		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential real estate	$	370	$	370	$	-	$	387	$	14
Multi-family		-		-		-		30		-
Commercial real estate		281		281		-		313		4
Home equity		224		224		-		186		-
Commercial loans		95		95		-		148		8
Impaired loans with no allowance		970		970		-		1,064		26

With an allowance recorded:
Residential real estate		723		723		103		971		32
Multi-family		-		-		-		-		-
Commercial real estate		945		945		58		236		4
Commercial construction		102		102		1		102		-
Home equity		321		321		73		366		18
Commercial Loans		3,234		3,234		156		1,121		135
Impaired loans with allowance		5,325		5,325		391		2,796		189

Total impaired:
Residential real estate		1,093		1,093		103		1,358		46
Multi-family		-		-		-		30		-
Commercial real estate		1,226		1,226		58		549		8
Commercial construction		102		102		1		102		-
Home equity		545		545		73		552		18
Commercial loans		3,329		3,329		156		1,269		143
Total impaired loans	$	6,295	$	6,295	$	391	$	3,860	$	215

	As of June 30, 2020						For the year ended June 30, 2020
(In thousands)	Recorded Investment		Unpaid Principal		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential real estate	$	868	$	868	$	-	$	719	$	70
Multi-family		123		123		-		42		-
Commercial real estate		344		344		-		499		14
Home equity		128		128		-		168		-
Commercial loans		145		145		-		137		1
Impaired loans with no allowance		1,608		1,608		-		1,565		85

With an allowance recorded:
Residential real estate		995		995		127		1,184		47
Multi-family		-		-		-		54		1
Commercial real estate		-		-		-		26		3
Commercial construction		102		102		15		102		-
Home equity		431		431		73		418		24
Commercial Loans		134		134		13		147		9
Impaired loans with allowance		1,662		1,662		228		1,931		84

Total impaired loans:
Residential real estate		1,863		1,863		127		1,903		117
Multi-family		123		123		-		96		1
Commercial real estate		344		344		-		525		17
Commercial construction		102		102		15		102		-
Home equity		559		559		73		586		24
Commercial loans		279		279		13		284		10
Total impaired loans	$	3,270	$	3,270	$	228	$	3,496	$	169

Allowance for Loan Losses

The allowance for loan losses is established through a provision for loan losses based on management’s evaluation of the risk inherent in the loan portfolio, the composition of the loan portfolio, specific impaired loans and current economic conditions. Such evaluation, which includes a review of certain identified loans on which full collectability may not be reasonably assured, considers among other matters, the estimated net realizable value or the fair value of the underlying collateral, economic conditions, payment status of the loan, historical loan loss experience and other factors that warrant recognition in providing for the loan loss allowance. In addition, various regulatory agencies, as an integral part of their examination process, periodically review The Bank of Greene County’s allowance for loan losses. Such agencies may require The Bank of Greene County to recognize additions to the allowance based on their judgment about information available to them at the time of their examination. The Bank of Greene County disaggregates its loan portfolio as noted in the below allowance for loan losses tables to evaluate for impairment collectively based on historical loss experience. The Bank of Greene County evaluates nonaccrual loans that are over $100 thousand and all trouble debt restructured loans individually for impairment, if it is probable that The Bank of Greene County will not be able to collect scheduled payments of principal and interest when due, according to the contractual terms of the loan agreements. Loans that are guaranteed, such as SBA loans, are excluded from the homogeneous pool of loans and no allowance is allocated to this segment of the portfolio. The measurement of impaired loans is generally based on the fair value of the underlying collateral. The Bank of Greene County charges loans off against the allowance for credit losses when it becomes evident that a loan cannot be collected within a reasonable amount of time or that it will cost the Bank more than it will receive, and all possible avenues of repayment have been analyzed, including the potential of future cash flow, the value of the underlying collateral, and strength of any guarantors or co-borrowers. Generally, consumer loans and smaller business loans (not secured by real estate) in excess of 90 days are charged-off against the allowance for loan losses, unless equitable arrangements are made. Included within consumer installment loan charge-offs and recoveries are deposit accounts that have been overdrawn in excess of 60 days. With continued growth in the number of deposit accounts, charge-off activity within this category has also grown, as can be seen from the tables below. For loans secured by real estate, a charge-off is recorded when it is determined that the collection of all or a portion of a loan may not be collected and the amount of that loss can be reasonably estimated. The allowance for loan losses is increased by a provision for loan losses (which results in a charge to expense) and recoveries of loans previously charged off and is reduced by charge-offs.

The Bank of Greene County recognizes that depending upon the duration of the COVID-19 pandemic and the adequacy of strategies in place by local and federal governments, borrowers may not have the ability to repay their debts which may ultimately result in losses to The Bank of Greene County. Management continues to closely monitor credit relationships, particularly those on payment deferral or adversely classified.

The following tables set forth the activity and allocation of the allowance for loan losses by loan class during and at the periods indicated. The allowance is allocated to each loan class based on historical loss experience, current economic conditions, and other considerations.

	Activity for the year ended June 30, 2021
(In thousands)		Balance June 30, 2020		Charge-offs		Recoveries		Provision			Balance June 30, 2021
Residential real estate		$	2,091	$	26	$	13	$	(66	)	$	2,012
Residential construction and land			141		-		-		(35	)		106
Multi-family			176		-		-		10			186
Commercial real estate			8,634		-		-		4,415			13,049
Commercial construction			2,053		-		-		(518	)		1,535
Home equity			295		-		-		(130	)		165
Consumer installment			197		309		124		255			267
Commercial loans			2,804		500		1		43			2,348
Total		$	16,391	$	835	$	138	$	3,974		$	19,668


	Activity for the year ended June 30, 2020
(In thousands)		Balance June 30, 2019		Charge-offs		Recoveries		Provision			Balance June 30, 2020
Residential real estate		$	2,026	$	102	$	16	$	151		$	2,091
Residential construction and land			87		-		-		54			141
Multi-family			180		-		-		(4	)		176
Commercial real estate			7,110		-		-		1,524			8,634
Commercial construction			872		-		-		1,181			2,053
Home equity			314		-		-		(19	)		295
Consumer installment			250		459		130		276			197
Commercial loans			2,361		335		36		742			2,804
Total		$	13,200	$	896	$	182	$	3,905		$	16,391

	Allowance for Loan Losses				Loans Receivable
	Ending Balance June 30, 2021 Impairment Analysis				Ending Balance June 30, 2021 Impairment Analysis
(In thousands)	Individually Evaluated		Collectively Evaluated		Individually Evaluated		Collectively Evaluated
Residential real estate	$	103	$	1,909	$	1,093	$	324,074
Residential construction and land		-		106		-		10,185
Multi-family		-		186		-		41,951
Commercial real estate		58		12,991		1,226		471,661
Commercial construction		1		1,534		102		62,661
Home equity		73		92		545		17,740
Consumer installment		-		267		-		4,942
Commercial loans		156		2,192		3,329		168,899
Total	$	391	$	19,277	$	6,295	$	1,102,113

	Allowance for Loan Losses				Loans Receivable
	Ending Balance June 30, 2020 Impairment Analysis				Ending Balance June 30, 2020 Impairment Analysis
(In thousands)	Individually Evaluated		Collectively Evaluated		Individually Evaluated		Collectively Evaluated
Residential real estate	$	127	$	1,964	$	1,863	$	277,469
Residential construction and land		-		141		-		11,847
Multi-family		-		176		123		24,981
Commercial real estate		-		8,634		344		381,071
Commercial construction		15		2,038		102		74,818
Home equity		73		222		559		21,547
Consumer installment		-		197		-		4,817
Commercial loans		13		2,791		279		212,840
Total	$	228	$	16,163	$	3,270	$	1,009,390

Foreclosed real estate (FRE)

FRE consists of properties acquired through mortgage loan foreclosure proceedings or in full or partial satisfaction of loans. The following table sets forth information regarding FRE as of June 30, 2021 and 2020:

(in thousands)	2021		2020
Residential real estate	$	64	$	-
Total foreclosed real estate	$	64	$	-