Prior to the ICM transaction, we routinely generated one-to-four family mortgages for sale into the secondary market. During the three months ended September 30, 2020, we did not receive any sales proceeds and during the nine months ended September 30, 2020, we received sales proceeds of $1.23 billion, resulting in mortgage fee income of $33.4 million. Subsequent to the ICM transaction and during the three and nine months ended September 30, 2021, we 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)	September 30, 2021		December 31, 2020
Commercial and non-residential real estate	$	1,430,290	$	1,141,114
Residential real estate	269,967		240,264
Home equity	23,777		30,828
Consumer	22,144		3,156
Total	1,746,178		1,415,362
Purchased credit impaired loans:
Commercial and non-residential real estate	15,079		21,008
Residential real estate	4,430		16,943

Consumer	601		1,488
Total purchased credit impaired loans	20,110		39,439
Total Loans	$	1,766,288	$	1,454,801
Deferred loan origination costs and (fees), net	(2,102)		(1,057)
Loans receivable	$	1,764,186	$	1,453,744

We currently manage our loan portfolios and the respective exposure to credit losses (credit risk) by the following specific portfolio segments, which are levels at which we develop and document our 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 internally 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 internally 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 Bank. 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 we continue 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
September 30, 2021
Commercial
Commercial business	$	5,931	$	3,792	$	3,646	$	9,577	$	11,283
Commercial real estate	676		243		495		1,171		1,341
Acquisition and development	—		—		1,401		1,401		2,816

Total commercial	6,607		4,035		5,542		12,149		15,440
Residential	—		—		6,971		6,971		7,222
Home equity	69		69		26		95		95
Consumer	—		—		3		3		3
Total impaired loans	$	6,676	$	4,104	$	12,542	$	19,218	$	22,760


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 September 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	$	7,223	$	—	$	—	$	7,785	$	—	$	—
Commercial real estate	1,943		11		11		3,264		26		26
Acquisition and development	340		—		—		375		10		54

Total commercial	9,506		11		11		11,424		36		80
Residential	7,029		3		3		3,085		5		5
Home equity	69		—		—		69		—		—
Consumer	3		—		—		5		—		—
Total	$	16,607	$	14	$	14	$	14,583	$	41	$	85

	Nine Months Ended September 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	$	6,701	$	—	$	—	$	5,225	$	—	$	—
Commercial real estate	2,125		33		33		3,124		77		79
Acquisition and development	348		—		—		1,487		67		73

Total commercial	9,174		33		33		9,836		144		152
Residential	5,418		11		10		2,683		14		14
Home equity	69		—		—		94		—		—
Consumer	3		—		—		8		—		—
Total	$	14,664	$	44	$	43	$	12,621	$	158	$	166

As of September 30, 2021, the Bank’s other real estate owned balance totaled $3.4 million, of which $2.7 million was related to the acquisition of The First State Bank (“First State”) in 2020. The Bank held $2.6 million, or 76.5%, of other real estate owned as a result of the foreclosure of 20 unrelated commercial loans. The remaining $0.8 million, or 23.5%, consists of 11 foreclosed residential real estate properties. There are five additional consumer mortgage loans collateralized by residential real estate properties in the process of foreclosure, with a total recorded investment of $0.4 million as of September 30, 2021. These include four legacy Bank loans totaling $0.2 million and one loan acquired from First State totaling $0.2 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
September 30, 2021
Commercial
Commercial business	$	589,196	$	13,623	$	12,910	$	3,605	$	619,334
Commercial real estate	508,729		22,004		33,687		156		564,576
Acquisition and development	86,205		7,624		4,149		1,064		99,042
SBA PPP	147,338		—		—		—		147,338
Total commercial	1,331,468		43,251		50,746		4,825		1,430,290
Residential	259,864		917		8,693		493		269,967
Home equity	23,304		378		—		95		23,777
Consumer	22,123		18		3		—		22,144
Total Loans	$	1,636,759	$	44,564	$	59,442	$	5,413	$	1,746,178

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 complete 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 we believe 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
September 30, 2021
Commercial
Commercial business	$	608,407	$	6,315	$	1,052	$	3,560	$	10,927	$	619,334	$	9,102	$	—
Commercial real estate	564,420		—		—		156		156		564,576		495		—
Acquisition and development	97,966		—		—		1,076		1,076		99,042		1,157		—
SBA PPP	147,338		—		—		—		—		147,338		—		—
Total commercial	1,418,131		6,315		1,052		4,792		12,159		1,430,290		10,754		—
Residential	268,281		726		415		545		1,686		269,967		6,601		—
Home equity	23,550		117		15		95		227		23,777		95		—
Consumer	22,138		3		3		—		6		22,144		3		—
Total Loans	$	1,732,100	$	7,161	$	1,485	$	5,432	$	14,078	$	1,746,178	$	17,453	$	—

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 $1.4 million and $2.0 million, while the related reserves were $0.1 million and $0.1 million as of September 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. Management tracks 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.

Management has 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 September 30, 2021 and December 31, 2020, the liability for unfunded commitments related to loans held for investment, excluding loans acquired from First State, was $0.5 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 June 30, 2021	$	22,659	$	1,363	$	284	$	576	$	24,882
Charge-offs	(96)		(2)		—		—		(98)
Recoveries	10		—		13		—		23
Provision (release)	(529)		(42)		(37)		609		1

ALL balance at September 30, 2021	$	22,044	$	1,319	$	260	$	1,185	$	24,808


(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	(361)		(2)		—		—		(363)
Recoveries	224		—		21		3		248
Provision (release)	(1,852)		(57)		(59)		1,131		(837)

ALL balance at September 30, 2021	$	22,044	$	1,319	$	260	$	1,185	$	24,808
Individually evaluated for impairment	$	4,035	$	—	$	69	$	—	$	4,104
Collectively evaluated for impairment	$	18,009	$	1,319	$	191	$	1,185	$	20,704

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


(Dollars in thousands)	Commercial		Residential		Home Equity		Consumer		Total
September 30, 2021
Individually evaluated for impairment	$	12,148	$	6,971	$	95	$	3	$	19,217
Collectively evaluated for impairment	1,418,142		262,996		23,682		22,141		1,726,961
Total Loans	$	1,430,290	$	269,967	$	23,777	$	22,144	$	1,746,178


(Dollars in thousands)	Commercial		Residential		Home Equity		Consumer		Total
ALL balance at June 30, 2020	$	15,401	$	1,846	$	264	$	58	$	17,569
Charge-offs	(100)		—		—		—		(100)
Recoveries	3		—		2		—		5
Provision (release)	8,840		(218)		82		(8)		8,696
ALL balance at Allowance contributed with mortgage combination transaction	—		(354)		—		—		(354)
ALL balance at September 30, 2020	$	24,144	$	1,274	$	348	$	50	$	25,816


(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	(1,856)		—		(23)		—		(1,879)
Recoveries	9		—		6		2		17
Provision (release)	15,893		356		38		(30)		16,257
Allowance contributed with mortgage combination transaction	—		(354)		—		—		(354)
ALL balance at September 30, 2020	$	24,144	$	1,274	$	348	$	50	$	25,816
Individually evaluated for impairment	$	1,984	$	—	$	—	$	—	$	1,984
Collectively evaluated for impairment	$	22,160	$	1,274	$	348	$	50	$	23,832

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


(Dollars in thousands)	Commercial		Residential		Home Equity		Consumer		Total
September 30, 2020
Individually evaluated for impairment	$	14,350	$	3,051	$	95	$	6	$	17,502
Collectively evaluated for impairment	1,102,976		231,707		34,689		3,980		1,373,352
Total Loans	$	1,117,326	$	234,758	$	34,784	$	3,986	$	1,390,854

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 September 30, 2021 and December 31, 2020, the Bank had specific reserve allocations for troubled debt restructurings (“TDRs”) of $0.5 million and $0.6 million, respectively. Loans considered to be troubled debt restructured loans totaled $7.7 million and $10.2 million as of September 30, 2021 and December 31, 2020, respectively. Of these totals, $1.4 million and $1.6 million, respectively, represent accruing troubled debt restructured loans and represent 8% and 10%, respectively, of total impaired loans. Meanwhile, as of September 30, 2021, $2.6 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 $0.5 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 September 30, 2021 and December 31, 2020.

During the nine months ended September 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. During the three months ended September 30, 2020, no additional loans were classified as TDRs and no restructured loans defaulted under their modified terms that were already classified as non-performing for having previously defaulted under their modified terms. For the nine months ended September 30, 2020, the following table presents the new TDRs as of the period indicated:


		Nine Months Ended September 30,
	2020
(Dollars in thousands)			Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial
Commercial business			5	$	6,237	$	5,427
Commercial real estate			2	159		152


Total commercial			7	6,396		5,579
Residential			1	87		86


Total			8	$	6,483	$	5,665

As of September 30, 2021, the loans in our PCI portfolio were all collectively evaluated for impairment and are segmented into three categories: commercial loans totaling $15.1 million, residential loans totaling $4.4 million, and consumer loans totaling $0.6 million, for a portfolio total of $20.1 million.


(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
September 30, 2021
Commercial
Commercial business	$	2,360	$	158	$	211	$	209	$	2,938
Commercial real estate	7,784		1,549		2,189		73		11,595
Acquisition and development	259		78		163		46		546

Total commercial	10,403		1,785		2,563		328		15,079
Residential	3,586		—		844		—		4,430

Consumer	36		—		563		2		601
Total Loans	$	14,025	$	1,785	$	3,970	$	330	$	20,110

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
September 30, 2021
Commercial
Commercial business	$	2,519	$	—	$	—	$	419	$	419	$	2,938
Commercial real estate	7,967		640		—		2,988		3,628		11,595
Acquisition and development	146		177		—		223		400		546

Total commercial	10,632		817		—		3,630		4,447		15,079
Residential	3,522		—		64		844		908		4,430

Consumer	36		—		—		565		565		601
Total Loans	$	14,190	$	817	$	64	$	5,039	$	5,920	$	20,110

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 our 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.

We actively participated in the PPP as a lender, evaluating other programs available to assist our clients and providing deferrals consistent with GSE guidelines. We originated 733 PPP loans with outstanding balances of $27.9 million through our internal commercial team and originated PPP loans totaling $119.4 million through our partnership with a Fintech company as of September 30, 2021.