Prior to the ICM transaction, the Company routinely generated one-to-four family mortgages for sale into the secondary market. During the three and six months ended June 30, 2020, the Company received sales proceeds of $808.9 million and $1.23 billion, resulting in mortgage fee income of $14.9 million and $26.2 million, respectively. Subsequent to the ICM transaction and during the three and six months ended June 30, 2021, the Company did not receive any sales proceeds or recognize any mortgage fee income related to the sale of one-to-four family mortgages.

The following table presents the components of loans as of the periods indicated:


(Dollars in thousands)	June 30, 2021		December 31, 2020
Commercial and non-residential real estate	$	1,385,849	$	1,141,114
Residential real estate	255,935		240,264
Home equity	24,833		30,828
Consumer	10,112		3,156
Total	1,676,729		1,415,362
Purchased credit impaired loans:
Commercial and non-residential real estate	13,860		21,008
Residential real estate	8,851		16,943

Consumer	431		1,488
Total purchased credit impaired loans	23,142		39,439
Total Loans	$	1,699,871	$	1,454,801
Deferred loan origination costs and (fees), net	(2,545)		(1,057)
Loans receivable	$	1,697,326	$	1,453,744

The Company currently manages its loan portfolios and the respective exposure to credit losses (credit risk) by the following specific portfolio segments, which are levels at which the Company develops and documents its systematic methodology to determine the allowance for credit losses attributable to each respective portfolio segment. These segments are as follows:

Commercial business loans – Commercial loans are made to provide funds for equipment and general corporate needs, as well as to finance owner-occupied real estate, and to finance future cash flows of Federal Government lease contracts. Repayment of these loans primarily uses the funds obtained from the operation of the borrower’s business. Commercial loans also include lines of credit that are utilized to finance a borrower’s short-term credit needs and/or to finance a percentage of eligible receivables and inventory. This segment includes both company originated and purchased participation loans. Credit risk arises from the successful operation of the business, which may be affected by competition, rising interest rates, regulatory changes and adverse conditions in the local and regional economy.

Commercial real estate loans – Commercial real estate loans consist of non-owner occupied properties, such as investment properties for retail, office and multifamily with a history of occupancy and cash flow. This segment includes both company originated and purchased participation loans. These loans carry the risk of adverse changes in the local economy and a tenant’s deteriorating credit strength, lease expirations in soft markets and sustained vacancies, which can adversely impact cash flow.

Commercial acquisition, development and construction loans – Commercial acquisition, development and construction loans are intended to finance the construction of commercial and residential properties, including the construction of single-family dwellings, and also includes loans for the acquisition and development of land. Construction loans represent a higher degree of risk than permanent real estate loans and may be affected by a variety of factors such as the borrower’s ability to control costs and adhere to time schedules and the risk that constructed units may not be absorbed by the market within the anticipated time frame or at the anticipated price. The loan commitment on these loans often includes an interest reserve that allows the lender to periodically advance loan funds to pay interest charges on the outstanding balance of the loan.

Commercial Small Business Administration (“SBA”) loans – Loans originated through the various SBA programs have become an area of lending focus for the Company. As of June 30, 2021, these loans have not yet been designated as a unique portfolio segment due to the relative insignificance from a loan volume perspective. These loans are currently included within the loan types noted above, based on the purpose of each loan originated. However, it is anticipated that this portfolio will continue to expand through a dedicated SBA lending focus, which the Company continues to monitor. When appropriate, the portfolio segments will be adjusted to segregate the SBA loan portfolio segment from the other commercial loan portfolio segments.

Commercial SBA Paycheck Protection Program (“PPP”) loans –This segment includes the loan originated through the recently created SBA PPP loans. Credit risk is heightened as this SBA program mandates that these loans require no collateral and no guarantors of the loans. However, the loans are backed by a full guaranty of the SBA, so long as the loans were originated in accordance with the program guidelines. Additionally, these loans are eligible for full forgiveness by the SBA so long as the borrowers comply with the program guidelines as it pertains to their eligibility to borrow these funds, as well as their use of the funds.

Residential mortgage loans – This residential real estate subsegment contains permanent and construction mortgage loans principally to consumers secured by residential real estate. Residential real estate loans are evaluated for the adequacy of repayment sources at the time of approval, based upon measures including credit scores, debt-to-income ratios and collateral values. Credit risk arises from the borrower’s, and where applicable, the builder's, continuing financial stability, which can be adversely impacted by job loss, divorce, illness or personal bankruptcy, among other factors. Also impacting credit risk would be a shortfall in the value of the residential real estate in relation to the outstanding loan balance in the event of a default or subsequent liquidation of the real estate collateral.

Home equity lines of credit – This segment includes subsegment for senior lien and subordinate lien lines of credit. Credit risk is similar to residential real estate loans described above as it is subject to the borrower’s continuing financial stability and the value of the collateral securing the loan.

Consumer loans – This segment of loans includes primarily installment loans and personal lines of credit. Consumer loans include installment loans used by clients to purchase automobiles, boats and recreational vehicles. Credit risk is similar to residential real estate loans described above as it is subject to the borrower’s continuing financial stability and the value of the collateral securing the loan. This segment also includes loans purchased from a third-party originator which it originates to finance the purchase of personal automotive vehicles. Credit risk is unique in comparison to the Consumer segment as this


	Impaired Loans with Specific Allowance				Impaired Loans with No Specific Allowance		Total Impaired Loans
(Dollars in thousands)	Recorded Investment		Related Allowance		Recorded Investment		Recorded Investment		Unpaid Principal Balance
June 30, 2021
Commercial
Commercial business	$	4,938	$	841	$	2,226	$	7,164	$	8,711
Commercial real estate	683		243		581		1,264		1,418
Acquisition and development	—		—		1,526		1,526		2,937

Total commercial	5,621		1,084		4,333		9,954		13,066
Residential	—		—		6,966		6,966		7,210
Home equity	69		69		26		95		95
Consumer	—		—		3		3		3
Total impaired loans	$	5,690	$	1,153	$	11,328	$	17,018	$	20,374


December 31, 2020
Commercial
Commercial business	$	3,431	$	1,032	$	5,653	$	9,084	$	10,440
Commercial real estate	772		264		944		1,716		1,864
Acquisition and development	—		—		2,534		2,534		3,939

Total commercial	4,203		1,296		9,131		13,334		16,243
Residential	—		—		1,960		1,960		2,232
Home equity	—		—		95		95		95
Consumer	—		—		5		5		5
Total impaired loans	$	4,203	$	1,296	$	11,191	$	15,394	$	18,575

The following table presents the average recorded investment in impaired loans, excluding PCI loans, and related interest income recognized for the periods indicated:


	Three Months Ended June 30,
	2021						2020
(Dollars in thousands)	Average Investment in Impaired Loans		Interest Income Recognized on Accrual Basis		Interest Income Recognized on Cash Basis		Average Investment in Impaired Loans		Interest Income Recognized on Accrual Basis		Interest Income Recognized on Cash Basis
Commercial
Commercial business	$	6,361	$	—	$	—	$	4,681	$	1	$	—
Commercial real estate	2,154		11		12		3,211		26		29
Acquisition and development	347		—		—		2,038		29		—

Total commercial	8,862		11		12		9,930		56		29
Residential	7,282		3		3		2,712		6		4
Home equity	69		—		—		120		—		—
Consumer	3		—		—		—		—		—
Total	$	16,216	$	14	$	15	$	12,762	$	62	$	33

	Six Months Ended June 30,
	2021						2020
(Dollars in thousands)	Average Investment in Impaired Loans		Interest Income Recognized on Accrual Basis		Interest Income Recognized on Cash Basis		Average Investment in Impaired Loans		Interest Income Recognized on Accrual Basis		Interest Income Recognized on Cash Basis
Commercial
Commercial business	$	6,641	$	—	$	—	$	3,972	$	1	$	—
Commercial real estate	2,216		22		21		3,054		52		52
Acquisition and development	352		—		—		2,043		57		19

Total commercial	9,209		22		21		9,069		110		71
Residential	4,613		8		7		2,547		11		9
Home equity	69		—		—		110		—		—
Consumer	3		—		—		10		—		—
Total	$	13,894	$	30	$	28	$	11,736	$	121	$	80

As of June 30, 2021, the Bank’s other real estate owned balance totaled $4.3 million, of which $3.2 million was related to the acquisition of The First State Bank (“First State”) in 2020. The Bank held $3.2 million, or 74.4%, of other real estate owned as a result of the foreclosure of 14 unrelated commercial loans. The remaining $1.1 million, or 25.6%, consists of 16 foreclosed residential real estate properties. There are six additional consumer mortgage loans collateralized by residential real estate properties in the process of foreclosure, with a total recorded investment of $0.5 million as of June 30, 2021. These include four legacy MVB loans totaling $0.2 million and two loans acquired from First State totaling $0.3 million. These loans are included in the table above and have no specific allowance allocated to them.

Bank management uses a nine-point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions.

Loans categorized as “Pass” rated have adequate sources of repayment, with little identifiable risk of collection and general conformity to the Bank's policy requirements, product guidelines and underwriting standards. Any exceptions that are identified during the underwriting and approval process have been adequately mitigated by other factors.

Loans categorized as “Special Mention” rated have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special mention assets are not adversely classified and do not expose the institution to sufficient risk to warrant adverse classification.

Loans categorized as “Substandard” rated are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt and are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Loans categorized as “Doubtful” rated have all the weakness inherent in those classified substandard with the added characteristic that the weakness makes collections or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. However, these loans are not yet rated as loss because certain events may occur which would salvage the debt.

The Special Mention category includes assets that are currently protected but are potentially weak, resulting in undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. Any portion of a loan that has been or is expected to be charged off is placed in the Loss category.

To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as past due status, bankruptcy, repossession or death, occurs to raise awareness of a possible credit event. The Bank’s Chief Credit Officer is responsible for the timely and accurate risk rating of the loans in the portfolio at origination and on an ongoing basis. The Credit Department ensures that a review of all commercial relationships of $1.0 million or greater is performed annually.

Review of the appropriate risk grade is included in both the internal and external loan review process and on an ongoing basis. The Bank has an experienced Credit Department that continually reviews and assesses loans within the portfolio. The Bank engages an external consultant to conduct independent loan reviews on at least an annual basis. Generally, the external consultant reviews larger commercial relationships or criticized relationships. The Credit Department compiles detailed reviews, including plans for resolution, on loans classified as Substandard on a quarterly basis. Loans in the Special Mention and Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance.

The following table represents the classes of the loan portfolio, excluding PCI loans, summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of the periods indicated:


(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
June 30, 2021
Commercial
Commercial business	$	558,052	$	18,893	$	13,679	$	937	$	591,561
Commercial real estate	428,548		24,495		33,781		156		486,980
Acquisition and development	86,891		7,615		4,315		1,184		100,005
SBA PPP	207,303		—		—		—		207,303
Total commercial	1,280,794		51,003		51,775		2,277		1,385,849
Residential	245,794		920		8,666		555		255,935
Home equity	24,289		379		70		95		24,833
Consumer	10,088		21		3		—		10,112
Total Loans	$	1,560,965	$	52,323	$	60,514	$	2,927	$	1,676,729

December 31, 2020
Commercial
Commercial business	$	496,222	$	9,529	$	17,045	$	1,095	$	523,891
Commercial real estate	356,544		32,044		34,001		533		423,122
Acquisition and development	80,771		25,001		4,184		2,170		112,126
SBA PPP	81,975		—		—		—		81,975
Total commercial	1,015,512		66,574		55,230		3,798		1,141,114
Residential	236,250		948		2,896		170		240,264
Home equity	30,277		381		144		26		30,828
Consumer	3,124		32		—		—		3,156
Total Loans	$	1,285,163	$	67,935	$	58,270	$	3,994	$	1,415,362

A loan that has deteriorated and requires additional collection efforts by the Bank could warrant non-accrual status. A thorough review is presented to the Chief Credit Officer and/or the Special Asset Review Committee (“SARC”), as required with respect to any loan which is in a collection process and to make a determination as to whether the loan should be placed on non-accrual status. The placement of loans on non-accrual status is subject to applicable regulatory restrictions and guidelines. Generally, loans should be placed in non-accrual status when the loan reaches 90 days past due, when it becomes likely the borrower cannot or will not make scheduled principal or interest payments, when full repayment of principal and interest is not expected or when the loan displays potential loss characteristics. Normally, all accrued interest is charged off when a loan is placed in non-accrual status unless the Company believes it is likely the accrued interest will be collected. Any payments subsequently received are applied to the principal. All principal and interest due must be paid up-to-date and the Bank is reasonably sure of future satisfactory payment performance to remove a loan from non-accrual status. Usually, this requires the receipt of six consecutive months of regular, on-time payments. Removal of a loan from non-accrual status will require the approval of the Chief Credit Officer and/or SARC.


(Dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total Past Due		Total Loans		Non-Accrual		90+ Days Still Accruing
June 30, 2021
Commercial
Commercial business	$	590,008	$	626	$	—	$	927	$	1,553	$	591,561	$	6,778	$	—
Commercial real estate	486,692		132		—		156		288		486,980		506		—
Acquisition and development	98,562		—		—		1,443		1,443		100,005		1,527		—
SBA PPP	207,303		—		—		—		—		207,303		—		—
Total commercial	1,382,565		758		—		2,526		3,284		1,385,849		8,811		—
Residential	248,736		829		236		6,134		7,199		255,935		6,592		—
Home equity	24,660		48		30		95		173		24,833		95		—
Consumer	10,109		3		—		—		3		10,112		3		—
Total Loans	$	1,666,070	$	1,638	$	266	$	8,755	$	10,659	$	1,676,729	$	15,501	$	—

December 31, 2020
Commercial
Commercial business	$	521,799	$	1,040	$	33	$	1,019	$	2,092	$	523,891	$	8,601	$	—
Commercial real estate	422,343		34		212		533		779		423,122		944		—
Acquisition and development	109,686		—		—		2,440		2,440		112,126		2,534		—
SBA PPP	81,975		—		—		—		—		81,975		—		—
Total commercial	1,135,803		1,074		245		3,992		5,311		1,141,114		12,079		—
Residential	235,420		2,058		1,969		817		4,844		240,264		1,534		—
Home equity	30,369		289		75		95		459		30,828		95		—
Consumer	3,156		—		—		—		—		3,156		5		—
Total Loans	$	1,404,748	$	3,421	$	2,289	$	4,904	$	10,614	$	1,415,362	$	13,713	$	—

An ALL is maintained to absorb losses from the loan portfolio. The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience and the amount of non-performing loans.

The Bank’s methodology for determining the ALL is based on the requirements of ASC Section 310-10-35 for loans individually evaluated for impairment and ASC Subtopic 450-20 for loans collectively evaluated for impairment, as well as the Interagency Policy Statements on the Allowance for Loan and Lease Losses and other bank regulatory guidance. The total of the two components represents the Bank’s ALL. The Bank’s methodology allows for the analysis of certain impaired loans in homogeneous pools, rather than on an individual basis, when those loans are below specific thresholds based on the outstanding

principal balance. More specifically, residential mortgage loans, home equity lines of credit and consumer loans, when considered impaired, are evaluated collectively for impairment by applying allocation rates derived from the Bank’s historical losses specific to impaired loans. Total collectively evaluated impaired loans, excluding the PCI loans acquired from First State, were $1.3 million and $2.0 million, while the related reserves were $0.1 million and $0.1 million as of June 30, 2021 and December 31, 2020. Such collectively evaluated impaired loans are included in total loans individually evaluated for impairment and in total impaired loans.

The segments described above, which are based on the federal call code assigned to each loan, provide the starting point for the ALL analysis. Company and Bank management track the historical net charge-off activity at the call code level. A historical charge-off factor is calculated utilizing a defined number of consecutive historical quarters. All pools currently utilize a rolling 12 quarters.

“Pass” rated credits are segregated from “Criticized” credits for the application of qualitative factors. Loans in the criticized pools, which possess certain qualities or characteristics that may lead to collection and loss issues, are closely monitored by management and subject to additional qualitative factors.

Company and Bank management have identified a number of additional qualitative factors which it uses to supplement the historical charge-off factor because these factors are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience. The additional factors that are evaluated quarterly and updated using information obtained from internal, regulatory and governmental sources are: lending policies and procedures, nature and volume of the portfolio, experience and ability of lending management and staff, volume and severity of problem credits, quality of the loan review system, changes in the value of underlying collateral, effect of concentrations of credit from a loan type, industry and/or geographic standpoint, changes in economic and business conditions, consumer sentiment and other external factors. The combination of historical charge-off and qualitative factors are then weighted for each risk grade. These weightings are determined internally based upon the likelihood of loss as a loan risk grading deteriorates.

Bank management analyzed the portfolios of letters of credit, non-revolving lines of credit and revolving lines of credit and based its calculation to estimate the liability for off-balance sheet credit exposures on the expectation of future advances of each loan category. Letters of credit were determined to be highly unlikely to advance since they are generally in place only to ensure various forms of performance of the borrowers. In the Bank’s history, there have been no letters of credit drawn upon. In addition, many of the letters of credit are cash secured and do not warrant an allocation. Non-revolving lines of credit were determined to be highly likely to advance as these are typically construction lines. Meanwhile, the likelihood of revolving lines of credit advancing varies with each individual borrower. Therefore, the future usage of each line was estimated based on the average line utilization of the revolving line of credit portfolio as a whole.

Once the estimated future advances were calculated, an allocation rate, which was derived from the Bank’s historical losses and qualitative environmental factors, was applied in a similar manner as those used for the allowance for loan loss calculation. The resulting estimated loss allocations were totaled to determine the liability for unfunded commitments related to these loans, which management considers necessary to anticipate potential losses on those commitments that have a reasonable probability of funding. As of June 30, 2021 and December 31, 2020, the liability for unfunded commitments related to loans held for investment, excluding loans acquired from First State, was $0.6 million.

Bank management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL.


(Dollars in thousands)	Commercial		Residential		Home Equity		Consumer		Total
ALL balance at March 31, 2021	$	24,279	$	1,513	$	283	$	49	$	26,124
Charge-offs	—		—		—		—		—
Recoveries	204		—		4		—		208
Provision (release)	(1,824)		(150)		(3)		527		(1,450)

ALL balance at June 30, 2021	$	22,659	$	1,363	$	284	$	576	$	24,882


(Dollars in thousands)	Commercial		Residential		Home Equity		Consumer		Total
ALL balance at December 31, 2020	$	24,033	$	1,378	$	298	$	51	$	25,760
Charge-offs	(265)		—		—		—		(265)
Recoveries	214		—		8		3		225
Provision (release)	(1,323)		(15)		(22)		522		(838)

ALL balance at June 30, 2021	$	22,659	$	1,363	$	284	$	576	$	24,882
Individually evaluated for impairment	$	1,084	$	—	$	69	$	—	$	1,153
Collectively evaluated for impairment	$	21,575	$	1,363	$	215	$	576	$	23,729

The following table presents the primary segments of the Company's loan portfolio, excluding PCI loans, as of the period indicated:


(Dollars in thousands)	Commercial		Residential		Home Equity		Consumer		Total
June 30, 2021
Individually evaluated for impairment	$	9,954	$	6,966	$	95	$	3	$	17,018
Collectively evaluated for impairment	1,375,895		248,969		24,738		10,109		1,659,711
Total Loans	$	1,385,849	$	255,935	$	24,833	$	10,112	$	1,676,729


(Dollars in thousands)	Commercial		Residential		Home Equity		Consumer		Total
ALL balance at March 31, 2020	$	9,597	$	1,272	$	236	$	56	$	11,161
Charge-offs	—		—		(23)		—		(23)
Recoveries	6		—		2		—		8
Provision	5,798		574		49		2		6,423
ALL balance at June 30, 2020	$	15,401	$	1,846	$	264	$	58	$	17,569


(Dollars in thousands)	Commercial		Residential		Home Equity		Consumer		Total
ALL balance at December 31, 2019	$	10,098	$	1,272	$	327	$	78	$	11,775
Charge-offs	(1,756)		—		(23)		—		(1,779)
Recoveries	6		—		4		2		12
Provision (release)	7,053		574		(44)		(22)		7,561

ALL balance at June 30, 2020	$	15,401	$	1,846	$	264	$	58	$	17,569
Individually evaluated for impairment	$	1,547	$	—	$	—	$	—	$	1,547
Collectively evaluated for impairment	$	13,854	$	1,846	$	264	$	58	$	16,022

The following table presents the primary segments of the Company's loan portfolio, excluding PCI loans, as of the period indicated:


(Dollars in thousands)	Commercial		Residential		Home Equity		Consumer		Total
June 30, 2020
Individually evaluated for impairment	$	14,372	$	3,082	$	102	$	—	$	17,556
Collectively evaluated for impairment	1,113,420		276,544		37,281		3,525		1,430,770
Total Loans	$	1,127,792	$	279,626	$	37,383	$	3,525	$	1,448,326

The ALL is based on estimates and actual losses will vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the portfolio at any given date.

At June 30, 2021 and December 31, 2020, the Bank had specific reserve allocations for troubled debt restructurings (“TDRs”) of $0.7 million and $0.6 million, respectively. Loans considered to be troubled debt restructured loans totaled $8.1 million and $10.2 million as of June 30, 2021 and December 31, 2020, respectively. Of these totals, $1.5 million and $1.6 million, respectively, represent accruing troubled debt restructured loans and represent 9% and 10%, respectively, of total impaired loans. Meanwhile, as of June 30, 2021, $2.7 million represent four loans to two borrowers that have defaulted under the restructured terms. The largest of these loans, totaling $2.1 million, is a commercial loan, and the other three of these loans, totaling $0.6 million, are commercial acquisition and development loans that were considered TDRs due to extended interest-only periods and/or unsatisfactory repayment structures once transitioned to principal and interest payments. These borrowers have experienced continued financial difficulty and are considered non-performing loans as of June 30, 2021 and December 31, 2020.

During the six months ended June 30, 2021, no additional loans were classified as TDRs and no restructured loan defaulted under their modified terms that were not already classified as non-performing for having previously defaulted under their modified terms. For the three and six months ended June 30, 2020, the following tables present the new TDRs as of the period indicated:



		Three Months Ended June 30,
	2020
(Dollars in thousands)		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial
Commercial business		3	$	6,083	$	6,083



Total commercial		3	6,083		6,083
Residential		1	87		87


Total		4	$	6,170	$	6,170


		Six Months Ended June 30,
	2020
(Dollars in thousands)			Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial
Commercial business			5	$	6,237	$	6,232
Commercial real estate			2	159		159


Total commercial			7	6,396		6,391
Residential			1	87		87


Total			8	$	6,483	$	6,478

For the PCI loan portfolio disclosed above, the Company decreased the ALL by $0.1 million and $0.1 million during the three and six months ended June 30, 2021, respectively. During the same periods of 2020, the Company increased the ALL for the PCI loan portfolio by $0.2 million and $0.2 million, respectively.

As of June 30, 2021, the loans in the Company's PCI portfolio were all collectively evaluated for impairment and are segmented into three categories: commercial loans totaling $13.9 million, residential loans totaling $8.9 million, and consumer loans totaling $0.4 million, for a portfolio total of $23.1 million.


(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
June 30, 2021
Commercial
Commercial business	$	6,828	$	614	$	426	$	3,358	$	11,226
Commercial real estate	594		2		—		1,663		2,259
Acquisition and development	140		—		—		235		375

Total commercial	7,562		616		426		5,256		13,860
Residential	6,659		87		1,130		975		8,851

Consumer	429		—		—		2		431
Total Loans	$	14,650	$	703	$	1,556	$	6,233	$	23,142

December 31, 2020
Commercial
Commercial business	$	12,263	$	136	$	345	$	4,860	$	17,604
Commercial real estate	982		3		263		21		1,269
Acquisition and development	1,900		—		—		235		2,135

Total commercial	15,145		139		608		5,116		21,008
Residential	15,157		—		1,665		121		16,943

Consumer	1,256		—		—		232		1,488
Total Loans	$	31,558	$	139	$	2,273	$	5,469	$	39,439


(Dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total Past Due		Total Loans
June 30, 2021
Commercial
Commercial business	$	6,400	$	373	$	284	$	4,169	$	4,826	$	11,226
Commercial real estate	551		—		—		1,708		1,708		2,259
Acquisition and development	—		—		—		375		375		375

Total commercial	6,951		373		284		6,252		6,909		13,860
Residential	6,272		212		71		2,296		2,579		8,851

Consumer	429		—		—		2		2		431
Total Loans	$	13,652	$	585	$	355	$	8,550	$	9,490	$	23,142

December 31, 2020
Commercial
Commercial business	$	16,264	$	71	$	65	$	1,204	$	1,340	$	17,604
Commercial real estate	1,157		—		—		112		112		1,269
Acquisition and development	2,135		—		—		—		—		2,135

Total commercial	19,556		71		65		1,316		1,452		21,008
Residential	13,714		710		145		2,374		3,229		16,943

Consumer	1,245		3		1		239		243		1,488
Total Loans	$	34,515	$	784	$	211	$	3,929	$	4,924	$	39,439

As the Company's PCI loan portfolio is accounted for in pools with similar risk characteristics in accordance with ASC 310-30, this portfolio is not subject to the impaired loan and TDR guidance. Rather, the revised estimated future cash flows of the individually modified loans are included in the estimated future cash flows of the pool.

The Company actively participated in the PPP as a lender, evaluating other programs available to assist its clients and providing deferrals consistent with GSE guidelines. The Company originated 733 PPP loans with outstanding balances of $64.3 million through our internal commercial team and originated PPP loans totaling $143.0 million through our partnership with a Fintech company as of June 30, 2021.