⁽¹⁾	Includes $13,756 and $29,464 in U.S. Small Business Administration (“SBA”), paycheck protection program (“PPP”) loans at March 31, 2022 and December 31, 2021, respectively.

At March 31, 2022 and December 31, 2021, the unpaid principal balances of loans held for sale, included in the residential real estate category above, were $1,197 and $3,950, respectively.

The following tables present the classes of the loan portfolio summarized by the pass category and the criticized and classified categories of special mention and substandard within the internal risk system:


	March 31, 2022
	Pass		Special Mention		Substandard		Total
Commercial real estate:
Construction	$	8,011	$	—	$	—	$	8,011
Non-residential		235,827		9,683		3,470		248,980
Multifamily		48,949		—		—		48,949
Residential real estate		33,857		—		2,057		35,914
Commercial and industrial		84,523		5,254		798		90,575
Consumer:
Indirect automobile		403,987		—		595		404,582
Home equity		11,640		—		122		11,762
Other consumer		8,741		—		75		8,816
Total	$	835,535	$	14,937	$	7,117	$	857,589


	December 31, 2021
	Pass		Special Mention		Substandard		Total
Commercial real estate:
Construction	$	10,095	$	—	$	—	$	10,095
Non-residential		232,253		10,341		2,974		245,568
Multifamily		55,926		—		—		55,926
Residential real estate		33,416		—		2,230		35,646
Commercial and industrial		98,171		5,377		775		104,323
Consumer:
Indirect automobile		381,354		—		734		382,088
Home equity		11,587		—		270		11,857
Other consumer		7,908		—		47		7,955
Total	$	830,710	$	15,718	$	7,030	$	853,458

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The past due status of all classes of loans is determined based on contractual due dates for loan payments.

The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans:


	March 31, 2022
							Greater Than
			30-59 Days		60-89 Days		90 Days Past		Total Loans
	Current		Past Due		Past Due		Due		Receivable		Non-accrual
Commercial real estate:
Construction	$	8,011	$	—	$	—	$	—	$	8,011	$	—
Non-residential		245,597		161		—		3,222		248,980		3,222
Multifamily		48,949		—		—		—		48,949		—
Residential real estate		34,408		257		411		838		35,914		2,057
Commercial and industrial		89,917		7		100		551		90,575		665
Consumer:
Indirect automobile		398,155		5,121		729		577		404,582		595
Home equity		11,563		132		42		25		11,762		122
Other consumer		8,584		131		26		75		8,816		75
Total	$	845,184	$	5,809	$	1,308	$	5,288	$	857,589	$	6,736


	December 31, 2021
							Greater Than
			30-59 Days		60-89 Days		90 Days Past		Total Loans
	Current		Past Due		Past Due		Due		Receivable		Non-accrual
Commercial real estate:
Construction	$	10,095	$	—	$	—	$	—	$	10,095	$	—
Non-residential		242,205		115		527		2,721		245,568		2,721
Multifamily		55,926		—		—		—		55,926		—
Residential real estate		34,363		57		242		984		35,646		2,230
Commercial and industrial		103,517		246		—		560		104,323		687
Consumer:
Indirect automobile		374,729		5,977		715		667		382,088		734
Home equity		11,429		149		106		173		11,857		270
Other consumer		7,702		153		53		47		7,955		47
Total	$	839,966	$	6,697	$	1,643	$	5,152	$	853,458	$	6,689

The following tables summarize information regarding impaired loans by loan portfolio class:


	March 31, 2022
	Recorded		Unpaid Principal		Related		Average Recorded
	Investment		Balance		Allowance		Investment
With no related allowance recorded:
Commercial real estate:
Non-residential	$	3,222	$	4,328	$	—	$	2,614
Residential real estate		2,057		2,628		—		2,327
Commercial and industrial		665		905		—		700
Consumer:
Indirect automobile		326		389		—		260
Home equity		122		123		—		260
Other consumer		38		41		—		44
Total	$	6,430	$	8,414	$	—	$	6,205
With an allowance recorded:
Commercial and industrial	$	—	$	—	$	—	$	71
Consumer:
Indirect automobile		269		279		43		291
Other consumer		37		37		1		9
Total	$	306	$	316	$	44	$	371
Total:
Commercial real estate:
Non-residential	$	3,222	$	4,328	$	—	$	2,614
Residential real estate		2,057		2,628		—		2,327
Commercial and industrial		665		905		—		771
Consumer:
Indirect automobile		595		668		43		551
Home equity		122		123		—		260
Other consumer		75		78		1		53
Total	$	6,736	$	8,730	$	44	$	6,576


	December 31, 2021
	Recorded		Unpaid Principal		Related		Average Recorded
	Investment		Balance		Allowance		Investment
With no related allowance recorded:
Commercial real estate:
Non-residential	$	2,721	$	3,797	$	—	$	2,290
Residential real estate		2,230		2,786		—		2,459
Commercial and industrial		687		921		—		674
Consumer:
Indirect automobile		345		408		—		219
Home equity		270		276		—		338
Other consumer		47		48		—		50
Total	$	6,300	$	8,236	$	—	$	6,030
With an allowance recorded:
Commercial real estate:
Commercial and industrial	$	—	$	—	$	—	$	148
Consumer:
Indirect automobile		389		395		68		286
Total	$	389	$	395	$	68	$	434
Total:
Commercial real estate:
Non-residential	$	2,721	$	3,797	$	—	$	2,290
Residential real estate		2,230		2,786		—		2,459
Commercial and industrial		687		921		—		822
Consumer:
Indirect automobile		734		803		68		505
Home equity		270		276		—		338
Other consumer		47		48		—		50
Total	$	6,689	$	8,631	$	68	$	6,464

A loan is considered impaired when based on current information and events it is probable that the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming loans and loans modified as TDRs. Loan modifications, which resulted in these loans being considered TDRs, are primarily in the form of rate concessions and extensions of maturity dates that are made specifically due to hardships experienced by the customer. The Company does not generally recognize interest income on a loan in an impaired status. At March 31, 2022 and December 31, 2021, three loans totaling $1,409 and $1,440, included in impaired loans, were identified as TDRs. There were no new TDRs in 2021 or the first three months of 2022. At March 31, 2022 and December 31, 2021, all TDR loans were performing in accordance with their restructured terms. At March 31, 2022 and December 31, 2021, the Company had no commitments to advance additional funds to borrowers under TDR loans.

The Company has transferred a portion of its originated commercial real estate loans to participating lenders. The amounts transferred have been accounted for as sales and are therefore not included in the Company’s accompanying statements of financial condition. The Company and participating lenders share ratably in any gains or losses that may result from a borrower’s lack of compliance with contractual terms of the loan. The Company continues to service the loans on behalf of the participating lenders and, as such, collects cash payments from the borrowers, remits payments to participating lenders and disburses required escrow funds to relevant parties. At March 31, 2022 and December 31, 2021, the Company was servicing loans for participants aggregating $3,879 and $3,962, respectively.

Residential mortgage and consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $790 and $935 at March 31, 2022 and December 31, 2021, respectively.

The Company services certain loans that it has sold without recourse to third parties. The aggregate balances of loans serviced for others were $315,695 and $314,953 as of March 31, 2022 and December 31, 2021, respectively.

The balances of capitalized servicing rights, included in other assets at March 31, 2022 and December 31, 2021, were $2,641 and $2,633, respectively. Fair value exceeds carrying value, and thus, no impairment charges related to servicing rights were recognized during the period ended March 31, 2022 or the year ended December 31, 2021.

The following tables summarize the segments of the loan portfolio and the allowance for loan losses, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment and the activity in the allowance for loan losses for the periods then ended:


	Commercial		Residential		Commercial
	Real Estate		Real Estate		and Industrial		Indirect		Consumer		Totals

	Three months ended March 31, 2022

Allowance for loan losses:
Beginning balance	$	3,317	$	54	$	725	$	3,416	$	47	$	7,559
(Credit to) provision for loan losses		(3)		(109)		18		295		20		221
Loans charged-off		—		(44)		—		(647)		(23)		(714)
Recoveries		—		154		—		471		9		634
Ending balance	$	3,314	$	55	$	743	$	3,535	$	53	$	7,700
Ending balance:
Loans deemed impaired	$	—	$	—	$	—	$	43	$	1	$	44
Loans not deemed impaired	$	3,314	$	55	$	743	$	3,492	$	52	$	7,656
Loan receivables:
Ending balance	$	305,940	$	35,914	$	90,575	$	404,582	$	20,578	$	857,589
Ending balance:
Loans deemed impaired	$	3,222	$	2,057	$	665	$	595	$	197	$	6,736
Loans not deemed impaired	$	302,718	$	33,857	$	89,910	$	403,987	$	20,381	$	850,853


	Commercial		Residential		Commercial
	Real Estate		Real Estate		and Industrial			Indirect	Consumer		Totals

	Three months ended March 31, 2021
Allowance for loan losses:
Beginning balance	$	5,354	$	117	$	1,050	$	4,974	$	138	$	11,633
(Credit to) provision for loan losses		(1,192)		11		269		857		(14)		(69)
Loans charged-off		—		—		—		(626)		(3)		(629)
Recoveries		—		3		—		307		16		326
Ending balance	$	4,162	$	131	$	1,319	$	5,512	$	137	$	11,261


	Commercial		Residential		Commercial
	Real Estate		Real Estate		and Industrial		Indirect		Consumer		Totals

	December 31, 2021
Allowance for loan losses:
Ending balance:
Loans deemed impaired	$	—	$	—	$	—	$	68	$	—	$	68
Loans not deemed impaired	$	3,317	$	54	$	725	$	3,348	$	47	$	7,491
Loan receivables:
Ending balance	$	311,589	$	35,646	$	104,323	$	382,088	$	19,812	$	853,458
Ending balance:
Loans deemed impaired	$	2,721	$	2,230	$	687	$	734	$	317	$	6,689
Loans not deemed impaired	$	308,868	$	33,416	$	103,636	$	381,354	$	19,495	$	846,769

In the normal course of business, the Company grants loans to officers, directors and other related parties. Balances and activity of such loans during the periods presented were not material.