Loans

6 Months Ended

Jun. 30, 2023

Receivables [Abstract]

Loans

Loans

We estimate the ACL based on relevant available information from both internal and external sources, including historical loss trends, current conditions and forecasts, specific analysis of individual loans, and other relevant and appropriate factors. The allowance process is designed to provide for expected future losses based on our reasonable and supportable (“R&S”) forecast as of the reporting date. Our ACL process is administered by our Risk Management group utilizing a third party software solution, with significant input and ultimate approval from our Executive Enterprise Risk Committee. Further, we have established a CECL Forecast Committee, which includes a cross discipline structure with membership from Executive Management, Risk Management, and Accounting, which approves ACL model assumptions each quarter. Our ACL is comprised of three principal elements: (i) specific analysis of individual loans identified during the review of the loan portfolio, (ii) pooled analysis of loans with similar risk characteristics based on historical experience, adjusted for current conditions, R&S forecasts, and expected prepayments, and (iii) additional allowances based on subjective factors, including local and general economic business factors and trends, portfolio concentrations and changes in the size and/or the general terms of the loan portfolio.

The first ACL element (specific allocations) includes loans that do not share similar risk characteristics and are evaluated on an individual basis. We will typically evaluate on an individual basis loans that are on nonaccrual; commercial loans that have been modified resulting in a concession, for which the borrower is experiencing financial difficulties, and which are considered troubled loan modifications; and severely delinquent mortgage and installment loans. When we determine that foreclosure is probable or when repayment is expected to be provided substantially through the operation or sale of underlying collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for estimated selling costs. For loans evaluated on an individual basis that are not determined to be collateral dependent, a discounted cash flow analysis is performed to determine expected credit losses.

The second ACL element (pooled analysis) includes loans with similar risk characteristics, which are broken down by segment, class, and risk metric. The Bank’s primary segments of commercial, mortgage, and installment loans are further classified by other relevant attributes, such as collateral type, lien position, occupancy status, amortization method, and balance size. Commercial classes are additionally segmented by risk rating, and mortgage and installment loan classes by credit score tier, which are updated at least semi-annually.

We utilize a discounted cash flow (“DCF”) model to estimate expected future losses for pooled loans. Expected future cash flows are developed from payment schedules over the contractual term, adjusted for forecasted default (probability of default), loss, and prepayment assumptions. We are not required to develop forecasts over the full contractual term of the financial asset or group of financial assets. Rather, for periods beyond which we are able to make or obtain R&S forecasts of expected credit losses, we revert to the long term average on a straight line or immediate basis, as determined by our CECL Forecast Committee, and which may vary depending on the economic outlook and uncertainty.

The DCF model for the mortgage and installment pooled loan segments includes using probability of default (“PD”) assumptions that are derived through regression analysis with forecasted US unemployment levels by credit score tier. We review a composite forecast of approximately 50 analysts as well as the Federal Open Market Committee (“FOMC”) projections in setting the unemployment forecast for the R&S period. The current ACL utilizes a one year R&S forecast followed by immediate reversion to the 30 year average unemployment rate. PD assumptions for the remaining segments are based primarily on historical rates by risk metric as defaults were not strongly correlated with any economic indicator. Loss given default (“LGD”) assumptions for the mortgage loan segment are based on a two year forecast followed by a two year straight line reversion period to the longer term average, while LGD rates for the remaining segments are the historical average for the entire period. Prepayment assumptions represent average rates per segment for a period determined by the CECL Forecast Committee and as calculated through the Bank’s Asset and Liability Management program.

Pooled reserves for the commercial loan segment are calculated using the DCF model with assumptions generally based on historical averages by class and risk rating. Effective risk rating practices allow for strong predictability of defaults and losses over the portfolio’s expected shorter duration, relative to mortgage and installment loans. Our rating system is similar to those employed by state and federal banking regulators.

The third ACL element (additional allocations based on subjective factors) is based on factors that cannot be associated with a specific credit or loan category and reflects our attempt to ensure that the overall ACL appropriately reflects a margin for the imprecision necessarily inherent in the estimates of expected credit losses. We adjust our quantitative model for certain qualitative factors to reflect the extent to which management expects current conditions and R&S forecasts to differ from the conditions that existed for the period over which historical information was evaluated. The qualitative framework reflects changes related to relevant data, such as changes in asset quality trends, portfolio growth and

composition, national and local economic factors, credit policy and administration and other factors not considered in the base quantitative model. We utilize a survey completed by business unit management throughout the Bank, as well as discussion with the CECL Forecast Committee to establish reserves under the qualitative framework.

An analysis of the allowance for credit losses by portfolio segment for the three months ended June 30, follows:

	Commercial		Mortgage		Installment		Subjective Allocation		Total
	(In thousands)
2023
Balance at beginning of period	$	13,533	$	20,113	$	4,054	$	12,850	$	50,550
Additions (deductions)
Provision for credit losses	2,590		(91)		383		435		3,317
Recoveries credited to the allowance	230		59		458		—		747
Loans charged against the allowance	(69)		(1)		(580)		—		(650)
Balance at end of period	$	16,284	$	20,080	$	4,315	$	13,285	$	53,964
2022
Balance at beginning of period	$	10,744	$	19,208	$	3,604	$	12,071	$	45,627
Additions (deductions)
Provision for credit losses	164		1,046		791		220		2,221
Recoveries credited to the allowance	151		97		405		—		653
Loans charged against the allowance	—		(38)		(580)		—		(618)
Balance at end of period	$	11,059	$	20,313	$	4,220	$	12,291	$	47,883

An analysis of the ACL by portfolio segment for the six months ended June 30, follows:

	Commercial		Mortgage		Installment		Subjective Allocation		Total
	(In thousands)
2023
Balance at beginning of period	$	13,817	$	21,633	$	4,290	$	12,695	$	52,435
Additions (deductions)
Provision for credit losses	3,238		(1,665)		322		590		2,485
Recoveries credited to the allowance	258		143		924		—		1,325
Loans charged against the allowance	(1,029)		(31)		(1,221)		—		(2,281)
Balance at end of period	$	16,284	$	20,080	$	4,315	$	13,285	$	53,964
2022
Balance at beginning of period	$	11,519	$	19,221	$	3,749	$	12,763	$	47,252
Additions (deductions)
Provision for credit losses	(688)		868		940		(472)		648
Recoveries credited to the allowance	228		268		778		—		1,274
Loans charged against the allowance	—		(44)		(1,247)		—		(1,291)
Balance at end of period	$	11,059	$	20,313	$	4,220	$	12,291	$	47,883

Loans on non-accrual status and past due more than 90 days (“Non-performing Loans”) follow:

	Non- Accrual with no Allowance for Credit Loss		Non- Accrual with an Allowance for Credit Loss		Total Non- Accrual		90+ and Still Accruing		Total Non- Performing Loans
	(In thousands)
June 30, 2023
Commercial
Commercial and industrial (1)	$	—	$	8	$	8	$	—	$	8
Commercial real estate	—		—		—		—		—
Mortgage
1-4 family owner occupied - jumbo	—		—		—		—		—
1-4 family owner occupied - non-jumbo (2)	1,707		652		2,359		—		2,359
1-4 family non-owner occupied	—		511		511		—		511
1-4 family - 2nd lien	—		322		322		—		322
Resort lending	—		100		100		—		100
Installment
Boat lending	—		287		287		—		287
Recreational vehicle lending	—		234		234		—		234
Other	—		173		173		—		173
Total	$	1,707	$	2,287	$	3,994	$	—	$	3,994
Accrued interest excluded from total	$	—	$	—	$	—	$	—	$	—
December 31, 2022
Commercial
Commercial and industrial (1)	$	—	$	9	$	9	$	—	$	9
Commercial real estate	—		—		—		—		—
Mortgage
1-4 family owner occupied - jumbo	—		—		—		—		—
1-4 family owner occupied - non-jumbo (2)	1,077		852		1,929		—		1,929
1-4 family non-owner occupied	152		323		475		—		475
1-4 family - 2nd lien	—		562		562		—		562
Resort lending	110		38		148		—		148
Installment
Boat lending	—		380		380		—		380
Recreational vehicle lending	—		30		30		—		30
Other	—		188		188		—		188
Total	$	1,339	$	2,382	$	3,721	$	—	$	3,721
Accrued interest excluded from total	$	—	$	—	$	—	$	—	$	—

(1)Non-performing commercial and industrial loans exclude $0.025 million and $0.029 million of government guaranteed loans at June 30, 2023 and December 31, 2022, respectively.

(2)Non-performing 1-4 family owner occupied – non jumbo loans exclude $2.857 million and $1.631 million of government guaranteed loans at June 30, 2023 and December 31, 2022, respectively.

The following table provides collateral information by class of loan for collateral-dependent loans with a specific reserve. A loan is considered to be collateral dependent when the borrower is experiencing financial difficulty and the repayment is expected to be provided substantially through the operation or sale of collateral.

The amortized cost of collateral-dependent loans by class follows:

	Collateral Type				Allowance for Credit Losses
	Real Estate		Other
	(In thousands)
June 30, 2023
Commercial
Commercial and industrial	$	708	$	3,304	$	1,765
Commercial real estate	2,090		—		—
Mortgage
1-4 family owner occupied - jumbo	—		—		—
1-4 family owner occupied - non-jumbo	2,551		—		242
1-4 family non-owner occupied	158		—		158
1-4 family - 2nd lien	111		—		75
Resort lending	100		—		35
Installment
Boat lending	—		223		79
Recreational vehicle lending	—		136		48
Other	—		32		11
Total	$	5,718	$	3,695	$	2,413
Accrued interest excluded from total	$	14	$	14
December 31, 2022
Commercial
Commercial and industrial	$	748	$	1,309	$	197
Commercial real estate	7,329		—		1,243
Mortgage
1-4 family owner occupied - jumbo	—		—		—
1-4 family owner occupied - non-jumbo	1,721		—		229
1-4 family non-owner occupied	233		—		29
1-4 family - 2nd lien	368		—		203
Resort lending	148		—		14
Installment
Boat lending	—		297		101
Recreational vehicle lending	—		30		11
Other	6		128		47
Total	$	10,553	$	1,764	$	2,074
Accrued interest excluded from total	$	40	$	6

An aging analysis of loans by class follows:

	Loans Past Due								Loans not Past Due		Total Loans
	30-59 days		60-89 days		90+ days		Total
	(In thousands)
June 30, 2023
Commercial
Commercial and industrial	$	64	$	—	$	33	$	97	$	745,561	$	745,658
Commercial real estate	—		—		—		—		792,504		792,504
Mortgage
1-4 family owner occupied - jumbo	—		547		—		547		812,040		812,587
1-4 family owner occupied - non-jumbo	1,820		1,120		1,260		4,200		295,218		299,418
1-4 family non-owner occupied	58		—		158		216		180,721		180,937
1-4 family - 2nd lien	357		189		81		627		109,659		110,286
Resort lending	—		—		100		100		38,070		38,170
Installment
Boat lending	557		6		200		763		274,003		274,766
Recreational vehicle lending	686		230		90		1,006		267,297		268,303
Other	371		67		18		456		108,029		108,485
Total	$	3,913	$	2,159	$	1,940	$	8,012	$	3,623,102	$	3,631,114
Accrued interest excluded from total	$	33	$	25	$	—	$	58	$	11,137	$	11,195
December 31, 2022
Commercial
Commercial and industrial	$	—	$	—	$	38	$	38	$	732,425	$	732,463
Commercial real estate	—		—		—		—		734,390		734,390
Mortgage
1-4 family owner occupied - jumbo	—		—		—		—		752,563		752,563
1-4 family owner occupied - non-jumbo	1,400		521		869		2,790		282,842		285,632
1-4 family non-owner occupied	61		93		200		354		182,746		183,100
1-4 family - 2nd lien	420		107		47		574		104,703		105,277
Resort lending	54		—		148		202		41,635		41,837
Installment
Boat lending	528		14		295		837		252,128		252,965
Recreational vehicle lending	639		147		18		804		269,869		270,673
Other	215		46		123		384		106,068		106,452
Total	$	3,317	$	928	$	1,738	$	5,983	$	3,459,369	$	3,465,352
Accrued interest excluded from total	$	27	$	7	$	—	$	34	$	9,975	$	10,009

During the three and six months ended June 30, 2023, there were no troubled loan modifications or subsequent defaults.

During the six months ended June 30, 2022, the terms of one loan was modified as a TDR. The modification of the terms of this loan included a reduction of the stated interest rate of the loan and a 34 month extension of the maturity date. The pre- and post-modification outstanding loan balances were both $0.3 million at June 30, 2022. This TDR increased the ACL by $0.03 million and resulted in zero charge-offs during the six months ended June 30, 2022. There were no TDRs that subsequently defaulted within twelve months following the modification during the three and six month period ended June 30, 2022.

A loan is considered to be in payment default generally once it is 90 days contractually past due under the modified terms.

In order to determine whether a borrower is experiencing financial difficulty, we perform an evaluation of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under our internal underwriting policy.

Credit Quality Indicators – As part of our on-going monitoring of the credit quality of our loan portfolios, we track certain credit quality indicators including (a) risk grade of commercial loans, (b) the level of classified commercial loans, (c) credit scores of mortgage and installment loan borrowers, and (d) delinquency history and non-performing loans.

For commercial loans, we use a loan rating system that is similar to those employed by state and federal banking regulators. Loans are graded on a scale of 1 to 12. A description of the general characteristics of the ratings follows:

Rating 1 through 6: These loans are generally referred to as our “non-watch” commercial credits that include very high or exceptional credit fundamentals through acceptable credit fundamentals.

Rating 7 and 8: These loans are generally referred to as our “watch” commercial credits. These ratings include loans to borrowers that exhibit potential credit weakness or downward trends. If not checked or cured these trends could weaken our asset or credit position. While potentially weak, no loss of principal or interest is envisioned with these ratings.

Rating 9: These loans are generally referred to as our “substandard accruing” commercial credits. This rating includes loans to borrowers that exhibit a well-defined weakness where payment default is probable and loss is possible if deficiencies are not corrected. Generally, loans with this rating are considered collectible as to both principal and interest primarily due to collateral coverage.

Rating 10 and 11: These loans are generally referred to as our ‘‘substandard - non-accrual’’ and ‘‘doubtful’’ commercial credits. Our doubtful rating includes a sub classification for a loss rate other than 50% (which is the standard doubtful loss rate). These ratings include loans to borrowers with weaknesses that make collection of the loan in full, on the basis of current facts, conditions and values at best questionable and at worst improbable. All of these loans are placed in non-accrual.

Rating 12: These loans are generally referred to as our “loss” commercial credits. This rating includes loans to borrowers that are deemed incapable of repayment and are charged-off.

The following tables summarize loan ratings by loan class for our commercial portfolio loan segment at June 30, 2023 and December 31, 2022:

	Commercial
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2023		2022		2021		2020		2019		Prior
	(In thousands)
June 30, 2023
Commercial and industrial
Non-watch (1-6)	$	41,984	$	161,339	$	80,550	$	49,596	$	46,832	$	109,245	$	233,392	$	722,938
Watch (7-8)	538		171		1,600		5,633		4,241		1,707		4,818		18,708
Substandard Accrual (9)	—		339		945		54		1,559		118		964		3,979
Non-Accrual (10-11)	—		—		—		—		—		33		—		33
Total	$	42,522	$	161,849	$	83,095	$	55,283	$	52,632	$	111,103	$	239,174	$	745,658
Accrued interest excluded from total	$	51	$	426	$	158	$	127	$	109	$	336	$	1,269	$	2,476
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	69	$	—	$	69
Commercial real estate
Non-watch (1-6)	$	82,991	$	177,367	$	146,014	$	30,902	$	84,971	$	201,524	$	46,246	$	770,015
Watch (7-8)	—		1,279		15,144		—		2,406		1,570		—		20,399
Substandard Accrual (9)	—		—		—		—		2,090		—		—		2,090
Non-Accrual (10-11)	—		—		—		—		—		—		—		—
Total	$	82,991	$	178,646	$	161,158	$	30,902	$	89,467	$	203,094	$	46,246	$	792,504
Accrued interest excluded from total	$	79	$	689	$	517	$	116	$	340	$	716	$	190	$	2,647
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	960	$	—	$	—	$	960
Total Commercial
Non-watch (1-6)	$	124,975	$	338,706	$	226,564	$	80,498	$	131,803	$	310,769	$	279,638	$	1,492,953
Watch (7-8)	538		1,450		16,744		5,633		6,647		3,277		4,818		39,107
Substandard Accrual (9)	—		339		945		54		3,649		118		964		6,069
Non-Accrual (10-11)	—		—		—		—		—		33		—		33
Total	$	125,513	$	340,495	$	244,253	$	86,185	$	142,099	$	314,197	$	285,420	$	1,538,162
Accrued interest excluded from total	$	130	$	1,115	$	675	$	243	$	449	$	1,052	$	1,459	$	5,123
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	960	$	69	$	—	$	1,029

	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2022		2021		2020		2019		2018		Prior
	(In thousands)
December 31, 2022
Commercial and industrial
Non-watch (1-6)	$	157,561	$	89,251	$	58,292	$	45,792	$	30,715	$	95,908	$	237,906	$	715,425
Watch (7-8)	680		4,539		781		1,690		105		4,474		2,793		15,062
Substandard Accrual (9)	—		971		68		388		109		402		—		1,938
Non-Accrual (10-11)	—		—		—		—		—		38		—		38
Total	$	158,241	$	94,761	$	59,141	$	47,870	$	30,929	$	100,822	$	240,699	$	732,463
Accrued interest excluded from total	$	238	$	178	$	146	$	105	$	181	$	308	$	890	$	2,046
Commercial real estate
Non-watch (1-6)	$	170,238	$	154,918	$	38,062	$	97,762	$	56,580	$	159,514	$	42,030	$	719,104
Watch (7-8)	—		182		313		4,769		1,010		1,641		112		8,027
Substandard Accrual (9)	—		—		—		181		2,014		5,064		—		7,259
Non-Accrual (10-11)	—		—		—		—		—		—		—		—
Total	$	170,238	$	155,100	$	38,375	$	102,712	$	59,604	$	166,219	$	42,142	$	734,390
Accrued interest excluded from total	$	609	$	468	$	88	$	368	$	206	$	515	$	109	$	2,363
Total Commercial
Non-watch (1-6)	$	327,799	$	244,169	$	96,354	$	143,554	$	87,295	$	255,422	$	279,936	$	1,434,529
Watch (7-8)	680		4,721		1,094		6,459		1,115		6,115		2,905		23,089
Substandard Accrual (9)	—		971		68		569		2,123		5,466		—		9,197
Non-Accrual (10-11)	—		—		—		—		—		38		—		38
Total	$	328,479	$	249,861	$	97,516	$	150,582	$	90,533	$	267,041	$	282,841	$	1,466,853
Accrued interest excluded from total	$	847	$	646	$	234	$	473	$	387	$	823	$	999	$	4,409

For each of our mortgage and installment portfolio segment classes, we generally monitor credit quality based on the credit scores of the borrowers. These credit scores are generally updated semi-annually.

The following tables summarize credit scores by loan class for our mortgage and installment loan portfolio segments at June 30, 2023 and December 31, 2022:

	Mortgage (1)
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2023		2022		2021		2020		2018		Prior
	(In thousands)
June 30, 2023
1-4 family owner occupied - jumbo
800 and above	$	3,755	$	23,390	$	57,622	$	18,549	$	4,628	$	5,526	$	—	$	113,470
750-799	23,422		117,180		203,566		65,298		20,739		19,295		1,036		450,536
700-749	9,263		45,032		70,232		24,202		11,785		13,517		1,496		175,527
650-699	1,907		11,885		20,351		10,182		2,305		6,518		—		53,148
600-649	—		4,287		3,018		4,006		1,137		3,155		—		15,603
550-599	—		1,083		499		—		—		—		—		1,582
500-549	—		—		553		1,486		—		682		—		2,721
Under 500	—		—		—		—		—		—		—		—
Unknown	—		—		—		—		—		—		—		—
Total	$	38,347	$	202,857	$	355,841	$	123,723	$	40,594	$	48,693	$	2,532	$	812,587
Accrued interest excluded from total	$	127	$	615	$	771	$	297	$	105	$	159	$	19	$	2,093
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

	Mortgage (1)
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2023		2022		2021		2020		2018		Prior
	(In thousands)
June 30, 2023 - continued
1-4 family owner occupied - non-jumbo
800 and above	$	3,025	$	4,656	$	9,780	$	4,799	$	2,906	$	9,256	$	3,692	$	38,114
750-799	9,451		32,694		25,406		15,057		5,275		18,943		8,768		115,594
700-749	6,253		24,688		10,603		5,425		3,958		24,168		3,647		78,742
650-699	1,610		12,290		4,072		3,695		2,500		12,936		1,284		38,387
600-649	548		233		786		1,355		950		8,728		37		12,637
550-599	—		242		976		894		715		4,891		193		7,911
500-549	—		—		308		1,666		599		2,902		—		5,475
Under 500	—		—		217		159		743		1,439		—		2,558
Unknown	—		—		—		—		—		—		—		—
Total	$	20,887	$	74,803	$	52,148	$	33,050	$	17,646	$	83,263	$	17,621	$	299,418
Accrued interest excluded from total	$	71	$	223	$	115	$	84	$	47	$	292	$	130	$	962
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	26	$	—	$	26
1-4 family non-owner occupied
800 and above	$	2,809	$	2,388	$	13,579	$	3,126	$	3,453	$	7,074	$	1,513	$	33,942
750-799	6,786		19,835		32,958		12,602		5,592		14,138		3,156		95,067
700-749	3,097		7,979		8,813		5,456		1,568		6,952		2,127		35,992
650-699	613		858		2,509		2,801		256		3,693		637		11,367
600-649	—		391		138		—		30		1,763		88		2,410
550-599	—		—		544		—		76		1,013		107		1,740
500-549	—		—		—		—		—		225		—		225
Under 500	—		—		—		—		—		194		—		194
Unknown	—		—		—		—		—		—		—		—
Total	$	13,305	$	31,451	$	58,541	$	23,985	$	10,975	$	35,052	$	7,628	$	180,937
Accrued interest excluded from total	$	40	$	109	$	161	$	65	$	36	$	137	$	60	$	608
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1-4 family - 2nd lien
800 and above	$	142	$	78	$	541	$	644	$	187	$	1,425	$	10,075	$	13,092
750-799	1,146		2,702		2,869		2,451		1,179		3,506		36,268		50,121
700-749	622		2,056		1,573		363		407		2,619		23,558		31,198
650-699	209		157		233		505		239		1,702		7,972		11,017
600-649	—		108		110		—		130		952		2,030		3,330
550-599	—		—		—		—		—		223		257		480
500-549	—		—		—		—		118		463		296		877
Under 500	—		—		—		—		53		28		90		171
Unknown	—		—		—		—		—		—		—		—
Total	$	2,119	$	5,101	$	5,326	$	3,963	$	2,313	$	10,918	$	80,546	$	110,286
Accrued interest excluded from total	$	7	$	17	$	10	$	9	$	10	$	42	$	622	$	717
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	5	$	—	$	5

	Mortgage - continued (1)
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2023		2022		2021		2020		2019		Prior
	(In thousands)
June 30, 2023 - continued
Resort lending
800 and above	$	—	$	—	$	525	$	—	$	—	$	6,314	$	—	$	6,839
750-799	—		824		1,034		1,052		181		15,022		—		18,113
700-749	—		217		609		251		—		6,897		—		7,974
650-699	—		—		—		51		—		4,184		—		4,235
600-649	—		—		—		—		—		457		—		457
550-599	—		—		—		—		—		358		—		358
500-549	—		—		—		—		—		94		—		94
Under 500	—		—		—		—		—		100		—		100
Unknown	—		—		—		—		—		—		—		—
Total	$	—	$	1,041	$	2,168	$	1,354	$	181	$	33,426	$	—	$	38,170
Accrued interest excluded from total	$	—	$	5	$	4	$	4	$	—	$	127	$	—	$	140
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total Mortgage
800 and above	$	9,731	$	30,512	$	82,047	$	27,118	$	11,174	$	29,595	$	15,280	$	205,457
750-799	40,805		173,235		265,833		96,460		32,966		70,904		49,228		729,431
700-749	19,235		79,972		91,830		35,697		17,718		54,153		30,828		329,433
650-699	4,339		25,190		27,165		17,234		5,300		29,033		9,893		118,154
600-649	548		5,019		4,052		5,361		2,247		15,055		2,155		34,437
550-599	—		1,325		2,019		894		791		6,485		557		12,071
500-549	—		—		861		3,152		717		4,366		296		9,392
Under 500	—		—		217		159		796		1,761		90		3,023
Unknown	—		—		—		—		—		—		—		—
Total	$	74,658	$	315,253	$	474,024	$	186,075	$	71,709	$	211,352	$	108,327	$	1,441,398
Accrued interest excluded from total	$	245	$	969	$	1,061	$	459	$	198	$	757	$	831	$	4,520
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	31	$	—	$	31

	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2022		2021		2020		2019		2018		Prior
	(In thousands)
December 31, 2022
1-4 family owner occupied - jumbo
800 and above	$	23,764	$	54,637	$	16,848	$	9,211	$	2,988	$	6,946	$	639	$	115,033
750-799	97,269		189,653		71,555		16,091		1,828		16,140		683		393,219
700-749	34,158		91,189		28,701		12,666		2,775		8,852		1,536		179,877
650-699	10,905		20,743		7,216		2,554		4,250		4,020		827		50,515
600-649	1,712		1,275		4,534		464		—		2,150		—		10,135
550-599	549		1,516		—		—		469		—		—		2,534
500-549	—		—		561		—		—		689		—		1,250
Under 500	—		—		—		—		—		—		—		—
Unknown	—		—		—		—		—		—		—		—
Total	$	168,357	$	359,013	$	129,415	$	40,986	$	12,310	$	38,797	$	3,685	$	752,563
Accrued interest excluded from total	$	506	$	773	$	315	$	108	$	44	$	127	$	19	$	1,892
1-4 family owner occupied - non-jumbo
800 and above	$	8,894	$	10,498	$	5,558	$	3,220	$	2,074	$	6,074	$	1,680	$	37,998
750-799	33,833		26,239		13,956		6,018		4,501		18,009		9,936		112,492
700-749	17,629		13,526		7,626		3,938		3,263		22,506		3,509		71,997
650-699	7,983		5,124		2,679		3,270		1,992		10,893		983		32,924
600-649	1,539		1,226		1,836		423		1,035		7,044		99		13,202
550-599	—		—		56		1,472		938		5,481		132		8,079
500-549	—		76		850		341		570		4,142		115		6,094
Under 500	—		207		764		475		285		1,115		—		2,846
Unknown	—		—		—		—		—		—		—		—
Total	$	69,878	$	56,896	$	33,325	$	19,157	$	14,658	$	75,264	$	16,454	$	285,632
Accrued interest excluded from total	$	283	$	123	$	78	$	58	$	58	$	242	$	111	$	953

	Mortgage - continued (1)
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2022		2021		2020		2019		2018		Prior
	(In thousands)
December 31, 2022 - (continued)
1-4 family non-owner occupied
800 and above	$	4,329	$	9,308	$	5,178	$	4,147	$	752	$	5,842	$	1,683	$	31,239
750-799	22,171		36,363		12,242		6,103		2,549		12,257		4,132		95,817
700-749	8,739		12,423		5,507		1,335		1,198		6,825		1,930		37,957
650-699	1,476		2,489		3,798		190		292		4,350		550		13,145
600-649	954		139		—		107		491		1,475		203		3,369
550-599	—		—		—		121		54		404		335		914
500-549	—		—		—		—		—		402		60		462
Under 500	—		—		—		—		—		197		—		197
Unknown	—		—		—		—		—		—		—		—
Total	$	37,669	$	60,722	$	26,725	$	12,003	$	5,336	$	31,752	$	8,893	$	183,100
Accrued interest excluded from total	$	106	$	161	$	69	$	36	$	21	$	108	$	57	$	558
1-4 family - 2nd lien
800 and above	$	238	$	282	$	454	$	267	$	200	$	503	$	8,000	$	9,944
750-799	2,109		2,749		2,334		665		333		3,597		38,346		50,133
700-749	1,495		1,820		931		759		459		2,649		20,981		29,094
650-699	192		292		90		237		275		1,496		8,188		10,770
600-649	20		99		258		192		23		974		2,040		3,606
550-599	130		—		—		—		132		395		228		885
500-549	—		—		—		18		—		418		122		558
Under 500	—		—		—		129		3		55		100		287
Unknown	—		—		—		—		—		—		—		—
Total	$	4,184	$	5,242	$	4,067	$	2,267	$	1,425	$	10,087	$	78,005	$	105,277
Accrued interest excluded from total	$	11	$	11	$	8	$	7	$	4	$	36	$	511	$	588
Resort lending
800 and above	$	—	$	429	$	—	$	—	$	268	$	7,031	$	—	$	7,728
750-799	1,045		1,272		1,211		183		616		15,815		—		20,142
700-749	85		651		114		—		—		6,331		—		7,181
650-699	107		—		53		—		—		5,413		—		5,573
600-649	—		—		—		—		—		895		—		895
550-599	—		—		—		—		—		68		—		68
500-549	—		—		—		—		—		140		—		140
Under 500	—		—		—		—		—		110		—		110
Unknown	—		—		—		—		—		—		—		—
Total	$	1,237	$	2,352	$	1,378	$	183	$	884	$	35,803	$	—	$	41,837
Accrued interest excluded from total	$	4	$	4	$	3	$	—	$	3	$	111	$	—	$	125
Total Mortgage
800 and above	$	37,225	$	75,154	$	28,038	$	16,845	$	6,282	$	26,396	$	12,002	$	201,942
750-799	156,427		256,276		101,298		29,060		9,827		65,818		53,097		671,803
700-749	62,106		119,609		42,879		18,698		7,695		47,163		27,956		326,106
650-699	20,663		28,648		13,836		6,251		6,809		26,172		10,548		112,927
600-649	4,225		2,739		6,628		1,186		1,549		12,538		2,342		31,207
550-599	679		1,516		56		1,593		1,593		6,348		695		12,480
500-549	—		76		1,411		359		570		5,791		297		8,504
Under 500	—		207		764		604		288		1,477		100		3,440
Unknown	—		—		—		—		—		—		—		—
Total	$	281,325	$	484,225	$	194,910	$	74,596	$	34,613	$	191,703	$	107,037	$	1,368,409
Accrued interest excluded from total	$	910	$	1,072	$	473	$	209	$	130	$	624	$	698	$	4,116

(1)Credit scores have been updated within the last twelve months.

	Installment (1)
	Term Loans Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Total
	(In thousands)
June 30, 2023
Boat lending
800 and above	$	7,784	$	7,197	$	8,731	$	4,321	$	4,858	$	8,188	$	41,079
750-799	24,889		40,493		33,916		17,044		14,036		24,342		154,720
700-749	10,497		16,448		12,234		6,192		5,446		9,519		60,336
650-699	1,832		3,184		4,108		1,369		1,337		2,104		13,934
600-649	453		457		946		432		110		708		3,106
550-599	—		178		338		15		68		480		1,079
500-549	—		—		—		166		18		165		349
Under 500	—		—		111		—		—		52		163
Unknown	—		—		—		—		—		—		—
Total	$	45,455	$	67,957	$	60,384	$	29,539	$	25,873	$	45,558	$	274,766
Accrued interest excluded from total	$	159	$	152	$	129	$	66	$	58	$	96	$	660
Current period gross charge-offs	$	—	$	28	$	—	$	—	$	15	$	15	$	58
Recreational vehicle lending
800 and above	$	2,785	$	9,710	$	12,058	$	4,187	$	4,136	$	6,390	$	39,266
750-799	13,857		47,336		43,045		13,865		10,190		14,072		142,365
700-749	5,763		20,564		23,176		6,758		4,184		4,504		64,949
650-699	1,226		4,562		5,541		1,426		1,092		1,641		15,488
600-649	35		613		1,731		270		282		626		3,557
550-599	—		384		523		55		110		207		1,279
500-549	—		376		406		137		168		95		1,182
Under 500	—		52		116		—		40		9		217
Unknown	—		—		—		—		—		—		—
Total	$	23,666	$	83,597	$	86,596	$	26,698	$	20,202	$	27,544	$	268,303
Accrued interest excluded from total	$	84	$	202	$	188	$	57	$	46	$	57	$	634
Current period gross charge-offs	$	—	$	10	$	118	$	20	$	47	$	—	$	195
Other
800 and above	$	1,714	$	1,387	$	1,532	$	1,204	$	840	$	1,055	$	7,732
750-799	8,993		13,081		8,613		4,476		2,317		5,005		42,485
700-749	3,702		8,109		5,838		2,757		1,301		3,010		24,717
650-699	1,703		22,998		2,163		700		437		1,456		29,457
600-649	124		686		389		180		115		483		1,977
550-599	—		188		205		88		83		158		722
500-549	—		189		181		27		67		133		597
Under 500	—		66		48		15		21		28		178
Unknown	620		—		—		—		—		—		620
Total	$	16,856	$	46,704	$	18,969	$	9,447	$	5,181	$	11,328	$	108,485
Accrued interest excluded from total	$	60	$	65	$	38	$	19	$	14	$	62	$	258
Current period gross charge-offs	$	817	$	45	$	10	$	11	$	—	$	85	$	968

	Installment (1)
	Term Loans Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		1905		Prior		Total
	(In thousands)
June 30, 2023 - continued
Total installment
800 and above	$	12,283	$	18,294	$	22,321	$	9,712	$	9,834	$	15,633	$	88,077
750-799	47,739		100,910		85,574		35,385		26,543		43,419		339,570
700-749	19,962		45,121		41,248		15,707		10,931		17,033		150,002
650-699	4,761		30,744		11,812		3,495		2,866		5,201		58,879
600-649	612		1,756		3,066		882		507		1,817		8,640
550-599	—		750		1,066		158		261		845		3,080
500-549	—		565		587		330		253		393		2,128
Under 500	—		118		275		15		61		89		558
Unknown	620		—		—		—		—		—		620
Total	$	85,977	$	198,258	$	165,949	$	65,684	$	51,256	$	84,430	$	651,554
Accrued interest excluded from total	$	303	$	419	$	355	$	142	$	118	$	215	$	1,552
Current period gross charge-offs	$	817	$	83	$	128	$	31	$	62	$	100	$	1,221

	Installment - continued (1)
	Term Loans Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Total
	(In thousands)
December 31, 2022
Boat lending
800 and above	$	7,901	$	8,763	$	4,391	$	5,102	$	3,612	$	5,955	$	35,724
750-799	44,498		37,531		20,179		16,506		12,814		14,504		146,032
700-749	15,390		13,704		7,281		5,848		4,357		6,132		52,712
650-699	3,933		4,135		1,498		1,290		1,032		2,213		14,101
600-649	661		1,043		149		286		200		670		3,009
550-599	22		195		16		53		203		274		763
500-549	277		57		62		43		106		30		575
Under 500	—		—		—		—		26		23		49
Unknown	—		—		—		—		—		—		—
Total	$	72,682	$	65,428	$	33,576	$	29,128	$	22,350	$	29,801	$	252,965
Accrued interest excluded from total	$	171	$	148	$	84	$	78	$	52	$	68	$	601
Recreational vehicle lending
800 and above	$	9,327	$	10,752	$	4,524	$	4,834	$	3,416	$	4,319	$	37,172
750-799	51,555		49,949		16,175		11,920		8,990		7,818		146,407
700-749	23,143		24,945		7,680		4,459		2,279		2,939		65,445
650-699	5,013		6,516		1,598		1,361		727		904		16,119
600-649	793		1,608		374		446		232		268		3,721
550-599	107		381		129		202		234		87		1,140
500-549	—		293		111		61		59		15		539
Under 500	—		85		7		22		—		16		130
Unknown	—		—		—		—		—		—		—
Total	$	89,938	$	94,529	$	30,598	$	23,305	$	15,937	$	16,366	$	270,673
Accrued interest excluded from total	$	219	$	227	$	72	$	58	$	38	$	34	$	648
Other
800 and above	$	1,974	$	1,647	$	1,449	$	942	$	366	$	731	$	7,109
750-799	15,692		9,973		5,521		3,393		1,678		3,612		39,869
700-749	9,848		7,517		3,404		1,801		999		2,653		26,222
650-699	22,740		2,851		1,051		593		405		1,286		28,926
600-649	711		634		127		222		147		507		2,348
550-599	122		63		170		54		115		118		642
500-549	67		217		29		64		19		90		486
Under 500	6		52		22		28		13		28		149
Unknown	701		—		—		—		—		—		701
Total	$	51,861	$	22,954	$	11,773	$	7,097	$	3,742	$	9,025	$	106,452
Accrued interest excluded from total	$	84	$	48	$	25	$	19	$	10	$	49	$	235
Total installment
800 and above	$	19,202	$	21,162	$	10,364	$	10,878	$	7,394	$	11,005	$	80,005
750-799	111,745		97,453		41,875		31,819		23,482		25,934		332,308
700-749	48,381		46,166		18,365		12,108		7,635		11,724		144,379
650-699	31,686		13,502		4,147		3,244		2,164		4,403		59,146
600-649	2,165		3,285		650		954		579		1,445		9,078
550-599	251		639		315		309		552		479		2,545
500-549	344		567		202		168		184		135		1,600
Under 500	6		137		29		50		39		67		328
Unknown	701		—		—		—		—		—		701
Total	$	214,481	$	182,911	$	75,947	$	59,530	$	42,029	$	55,192	$	630,090
Accrued interest excluded from total	$	474	$	423	$	181	$	155	$	100	$	151	$	1,484

(1)Credit scores have been updated within the last twelve months.

Foreclosed residential real estate properties included in other real estate and repossessed assets on our Condensed Consolidated Statements of Financial Condition totaled $0.7 million and $0.4 million at June 30, 2023 and December 31,

2022, respectively. Retail mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements totaled $0.2 million and $0.8 million at June 30, 2023 and December 31, 2022, respectively.

During the three and six month period ended June 30, 2023, we sold $10.2 million and $51.5 million, respectively, of portfolio residential mortgage loans servicing retained and recognized a gain (loss) on sale of $0.01 million and $(0.15) million, respectively. These transactions were done primarily for asset/liability management purposes. During the first quarter of 2022, we sold $33.4 million of portfolio residential fixed rate mortgage loans servicing retained and recognized a gain on sale of $0.41 million. This transaction was done primarily for asset/liability management purposes. There were no portfolio mortgage loan sales in the second quarter of 2022.