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Loans
 9 Months Ended
Sep. 30, 2021
Loans [Abstract]  
Loans
4.
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 a review of 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 portfolios.

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 designated as a TDR, or mortgage and installment TDR loans with a rate concession. 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 the entity is 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 the 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 the Bloomberg composite forecast of approximately 50 analysts as well as the 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 the two year average rates per segment 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. The current period’s ACL further recognizes inherent risk related to the ongoing COVID-19 pandemic; specifically to the volume of loans on forbearance, commercial loans in high risk industries, and mortgage and installment borrowers with occupations in those high risk industries. Identified high risk industries include: food service, hospitality, entertainment, retail, investment real estate, assisted living, and non-owner occupied office.

An analysis of the allowance for credit losses by portfolio segment for the three months ended September 30, follows (1):

  
Commercial
    
Mortgage
    
Installment
    
Subjective
Allocation
    
Total
  
   
(In thousands)
  
2021
                              
Balance at beginning of period
  
$
9,094
    
$
18,933
    
$
3,701
    
$
14,198
    
$
45,926
  
Additions (deductions)
                                        
Provision for credit losses
    
(969
)
    
16
      
805
      
(511
)
    
(659
)
Recoveries credited to the allowance
    
1,751
      
339
      
394
      
-
      
2,484
  
Loans charged against the allowance
    
-
      
(113
)
    
(839
)
    
-
      
(952
)
Balance at end of period
  
$
9,876
    
$
19,175
    
$
4,061
    
$
13,687
    
$
46,799
  
                                         
2020
                                        
Balance at beginning of period
  
$
8,731
    
$
7,261
    
$
1,217
    
$
17,291
    
$
34,500
  
Additions (deductions)
                                        
Provision for credit losses (1)
    
(875
)
    
(257
)
    
18
      
2,089
      
975
  
Recoveries credited to the allowance
    
297
      
157
      
196
      
-
      
650
  
Loans charged against the allowance
    
-
      
(162
)
    
(192
)
    
-
      
(354
)
Balance at end of period
  
$
8,153
    
$
6,999
    
$
1,239
    
$
19,380
    
$
35,771
  

(1)
Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.


An analysis of the allowance for credit losses by portfolio segment for the nine months ended September 30, follows (1):

 
  
Commercial
    
Mortgage
    
Installment
    
Subjective
Allocation
    
Total
  
 
  
(In thousands)
  
2021
                              
Balance at beginning of period
  
$
7,401
    
$
6,998
    
$
1,112
    
$
19,918
    
$
35,429
  
Additions (deductions)
                                        
Impact of adoption of ASC 326
    
2,551
      
12,000
      
3,052
      
(6,029
)
    
11,574
  
Provision for credit losses
    
(2,591
)
    
(264
)
    
499
      
(202
)
    
(2,558
)
Initial allowance on loans purchased with credit deterioration
    
95
      
18
      
21
      
-
      
134
  
Recoveries credited to the allowance
    
2,420
      
720
      
778
      
-
      
3,918
  
Loans charged against the allowance
    
-
      
(297
)
    
(1,401
)
    
-
      
(1,698
)
Balance at end of period
  
$
9,876
    
$
19,175
    
$
4,061
    
$
13,687
    
$
46,799
  
 
                                        
2020
                                        
Balance at beginning of period
  
$
7,922
    
$
8,216
    
$
1,283
    
$
8,727
    
$
26,148
  
Additions (deductions)
                                        
Provision for credit losses (1)
    
2,804
      
(895
)
    
322
      
10,653
      
12,884
  
Recoveries credited to the allowance
    
1,463
      
364
      
577
      
-
      
2,404
  
Loans charged against the allowance
    
(4,036
)
    
(686
)
    
(943
)
    
-
      
(5,665
)
Balance at end of period
  
$
8,153
    
$
6,999
    
$
1,239
    
$
19,380
    
$
35,771
  

(1)
Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.


The ACL and recorded investment in loans by portfolio segment at December 31, 2020 follows (1):

  
Commercial
    
Mortgage
    
Installment
    
Subjective
Allocation
    
Total
  
   
(In thousands)
  
December 31, 2020
                              
ACL:
                              
Individually evaluated for impairment
  
$
1,266
    
$
4,124
    
$
191
    
$
-
    
$
5,581
  
Collectively evaluated for impairment
    
6,135
      
2,874
      
921
      
19,918
      
29,848
  
Loans acquired with deteriorated credit quality
    
-
      
-
      
-
      
-
      
-
  
Total ending ACL
  
$
7,401
    
$
6,998
    
$
1,112
    
$
19,918
    
$
35,429
  
                                         
Loans
                                        
Individually evaluated for impairment
  
$
9,431
    
$
39,245
    
$
1,996
            
$
50,672
  
Collectively evaluated for impairment
    
1,236,052
      
980,449
      
474,379
              
2,690,880
  
Loans acquired with deteriorated credit quality
    
468
      
410
      
147
              
1,025
  
Total loans recorded investment
    
1,245,951
      
1,020,104
      
476,522
              
2,742,577
  
Accrued interest included in recorded investment
    
3,536
      
4,178
      
1,185
              
8,899
  
Total loans
  
$
1,242,415
    
$
1,015,926
    
$
475,337
            
$
2,733,678
  

(1)
Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.


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

  
September 30, 2021
        
   
Non- Accrual
    
Non-Accrual
                      
December 31,
2020
  
   
with no
Allowance for
Credit Loss
    
with an
Allowance for
Credit Loss
    
Total
Non-Accrual
    
90+ and Still
Accruing
    
Total
Non-Performing
Loans
    
Total Non-Performing
Loans (1)
  
               
(In thousands)
                    
Commercial
                                    
Commercial and industrial (2)
  
$
-
    
$
189
    
$
189
    
$
-
    
$
189
    
$
1,387
  
Commercial real estate
    
-
      
-
      
-
      
-
      
-
      
-
  
Mortgage
                                                
1-4 family owner occupied - jumbo
    
607
      
-
      
607
      
-
      
607
      
623
  
1-4 family owner occupied - non-jumbo (3)
    
133
      
1,836
      
1,969
      
-
      
1,969
      
2,281
  
1-4 family non-owner occupied
    
281
      
685
      
966
      
-
      
966
      
1,112
  
1-4 family - 2nd lien
    
182
      
885
      
1,067
      
-
      
1,067
      
1,344
  
Resort lending
    
-
      
277
      
277
      
-
      
277
      
607
  
Installment
                                                
Boat lending
    
-
      
155
      
155
      
-
      
155
      
52
  
Recreational vehicle lending
    
-
      
71
      
71
      
-
      
71
      
74
  
Other
    
-
      
289
      
289
      
-
      
289
      
393
  
Total
  
$
1,203
    
$
4,387
    
$
5,590
    
$
-
    
$
5,590
    
$
7,873
  
                                                 
Accrued interest excluded from total
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  

(1)
Non-performing loans at December 31, 2020 exclude PCI loans.
(2)
Non-performing commercial and industrial loans exclude $0.053 million of government guaranteed loans at both September 30, 2021 and December 31, 2020.
(3)
Non-performing 1-4 family owner occupied – non jumbo loans exclude $0.274 million and $0.386 million of government guaranteed loans at September 30, 2021 and December 31, 2020, 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
        
   
Real
Estate
    
Other
    
Allowance for
Credit Losses
  
   
(In thousands)
        
September 30, 2021
                  
Commercial
                  
Commercial and industrial
  
$
87
    
$
559
      
235
  
Commercial real estate
    
131
      
-
      
30
  
Mortgage
                        
1-4 family owner occupied - jumbo
    
607
      
-
      
-
  
1-4 family owner occupied - non-jumbo
    
848
      
-
      
254
  
1-4 family non-owner occupied
    
560
      
-
      
99
  
1-4 family - 2nd lien
    
476
      
-
      
104
  
Resort lending
    
278
      
-
      
79
  
Installment
                        
Boat lending
    
-
      
65
      
23
  
Recreational vehicle lending
    
-
      
43
      
15
  
Other
    
-
      
180
      
64
  
Total
  
$
2,987
    
$
847
    
$
903
  
                         
Accrued interest excluded from total
  
$
-
    
$
1
          

An aging analysis of loans by class follows:

  
Loans Past Due
    
Loans not
    
Total
  
   
30-59 days
    
60-89 days
    
90+ days
    
Total
    
Past Due
    
Loans
  
   
(In thousands)
  
September 30, 2021
                                    
Commercial
                                    
Commercial and industrial
  
$
-
    
$
-
    
$
242
    
$
242
    
$
624,950
    
$
625,192
  
Commercial real estate
    
-
      
-
      
-
      
-
      
597,610
      
597,610
  
Mortgage
                                                
1-4 family owner occupied - jumbo
    
-
      
-
      
607
      
607
      
536,704
      
537,311
  
1-4 family owner occupied - non-jumbo
    
822
      
493
      
700
      
2,015
      
247,205
      
249,220
  
1-4 family non-owner occupied
    
204
      
-
      
445
      
649
      
176,147
      
176,796
  
1-4 family - 2nd lien
    
511
      
49
      
428
      
988
      
86,706
      
87,694
  
Resort lending
    
-
      
-
      
278
      
278
      
49,693
      
49,971
  
Installment
                                                
Boat lending
    
181
      
-
      
65
      
246
      
231,300
      
231,546
  
Recreational vehicle lending
    
302
      
-
      
43
      
345
      
229,406
      
229,751
  
Other
    
134
      
113
      
175
      
422
      
98,465
      
98,887
  
Total
  
$
2,154
    
$
655
    
$
2,983
    
$
5,792
    
$
2,878,186
    
$
2,883,978
  
                                                 
Accrued interest excluded from total
  
$
34
    
$
10
    
$
-
    
$
44
    
$
6,984
    
$
7,028
  
                                                 
December 31, 2020
                                                
Commercial
                                                
Commercial and industrial
  
$
5,003
    
$
131
    
$
70
    
$
5,204
    
$
671,115
    
$
676,319
  
Commercial real estate
    
2,600
      
-
      
-
      
2,600
      
567,032
      
569,632
  
Mortgage
                                                
1-4 family owner occupied - jumbo
    
761
      
-
      
623
      
1,384
      
438,794
      
440,178
  
1-4 family owner occupied - non-jumbo
    
1,888
      
453
      
502
      
2,843
      
264,730
      
267,573
  
1-4 family non-owner occupied
    
1,184
      
139
      
476
      
1,799
      
157,977
      
159,776
  
1-4 family - 2nd lien
    
710
      
228
      
732
      
1,670
      
92,860
      
94,530
  
Resort lending
    
32
      
195
      
358
      
585
      
57,462
      
58,047
  
Installment
                                                
Boat lending
    
95
      
101
      
-
      
196
      
207,317
      
207,513
  
Recreational vehicle lending
    
207
      
37
      
48
      
292
      
169,282
      
169,574
  
Other
    
337
      
162
      
199
      
698
      
98,737
      
99,435
  
Total recorded investment
  
$
12,817
    
$
1,446
    
$
3,008
    
$
17,271
    
$
2,725,306
    
$
2,742,577
  
Accrued interest included in recorded investment
  
$
147
    
$
22
    
$
-
    
$
169
    
$
8,730
    
$
8,899
  

Impaired loans at December 31, 2020 are as follows (1):

  
2020
  
Impaired loans with no allocated ACL
  
(In thousands)
  
Troubled debt restructurings ("TDR")
  
$
93
  
Non - TDR
    
1,367
  
Impaired loans with an allocated ACL
        
TDR - allowance based on collateral
    
9,027
  
TDR - allowance based on present value cash flow
    
37,953
  
Non - TDR - allowance based on collateral
    
1,873
  
Total impaired loans
  
$
50,313
  
         
Amount of ACL allocated (1)
        
TDR - allowance based on collateral
  
$
1,058
  
TDR - allowance based on present value cash flow
    
3,755
  
Non - TDR - allowance based on collateral
    
768
  
Total amount of ACL allocated
  
$
5,581
  

(1)
Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.


Impaired loans by class at December 31, 2020 are as follows (1):

  
2020
  
   
Recorded
Investment
    
Unpaid
Principal
Balance
    
Related
ACL (1)
  
With no related ACL recorded:
        
(In thousands)
        
Commercial
                  
Commercial and industrial
  
$
77
    
$
80
    
$
-
  
Commercial real estate
    
-
      
-
      
-
  
Mortgage
                        
1-4 family owner occupied - jumbo
    
623
      
629
      
-
  
1-4 family owner occupied - non-jumbo
    
-
      
-
      
-
  
1-4 family non-owner occupied
    
305
      
473
      
-
  
1-4 family - 2nd lien
    
301
      
304
      
-
  
Resort lending
    
154
      
379
      
-
  
Installment
                        
Boat lending
    
-
      
-
      
-
  
Recreational vehicle lending
    
-
      
-
      
-
  
Other
    
-
      
-
      
-
  
     
1,460
      
1,865
      
-
  
With an ACL recorded:
                        
Commercial
                        
Commercial and industrial
    
2,227
      
2,370
      
756
  
Commercial real estate
    
7,127
      
7,096
      
510
  
Mortgage
                        
1-4 family owner occupied - jumbo
    
506
      
880
      
50
  
1-4 family owner occupied - non-jumbo
    
21,655
      
22,311
      
2,300
  
1-4 family non-owner occupied
    
4,335
      
4,704
      
495
  
1-4 family - 2nd lien
    
811
      
829
      
200
  
Resort lending
    
10,555
      
10,764
      
1,079
  
Installment
                        
Boat lending
    
7
      
11
      
2
  
Recreational vehicle lending
    
87
      
100
      
19
  
Other
    
1,902
      
2,040
      
170
  
     
49,212
      
51,105
      
5,581
  
Total
                        
Commercial
                        
Commercial and industrial
    
2,304
      
2,450
      
756
  
Commercial real estate
    
7,127
      
7,096
      
510
  
Mortgage
                        
1-4 family owner occupied - jumbo
    
1,129
      
1,509
      
50
  
1-4 family owner occupied - non-jumbo
    
21,655
      
22,311
      
2,300
  
1-4 family non-owner occupied
    
4,640
      
5,177
      
495
  
1-4 family - 2nd lien
    
1,112
      
1,133
      
200
  
Resort lending
    
10,709
      
11,143
      
1,079
  
Installment
                        
Boat lending
    
7
      
11
      
2
  
Recreational vehicle lending
    
87
      
100
      
19
  
Other
    
1,902
      
2,040
      
170
  
Total
  
$
50,672
    
$
52,970
    
$
5,581
  
                         
Accrued interest included in recorded investment
  
$
359
                  

(1)
Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.


Average recorded investment in and interest income earned on impaired loans by class follows (1):

  
Three months ended
September 30, 2020
    
Nine months ended
September 30, 2020
  
   
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Average
Recorded
Investment
    
Interest
Income
Recognized
  
With no related ACL recorded:
  
(In thousands)
  
Commercial
                        
Commercial and industrial
  
$
103
    
$
2
    
$
137
    
$
4
  
Commercial real estate
    
-
      
-
      
199
      
-
  
Mortgage
                                
1-4 family owner occupied - jumbo
    
632
      
-
      
316
      
-
  
1-4 family owner occupied - non-jumbo
    
331
      
-
      
353
      
4
  
1-4 family non-owner occupied
    
316
      
2
      
309
      
5
  
1-4 family - 2nd lien
    
403
      
-
      
399
      
-
  
Resort lending
    
77
      
-
      
77
      
-
  
Installment
                                
Boat lending
    
-
      
-
      
-
      
-
  
Recreational vehicle lending
    
-
      
-
      
-
      
-
  
Other
    
-
      
-
      
-
      
-
  
     
1,862
      
4
      
1,790
      
13
  
With an a ACL recorded:
                                
Commercial
                                
Commercial and industrial
    
2,431
      
38
      
2,231
      
105
  
Commercial real estate
    
12,195
      
130
      
11,657
      
641
  
Mortgage
                                
1-4 family owner occupied - jumbo
    
808
      
11
      
1,228
      
39
  
1-4 family owner occupied - non-jumbo
    
22,070
      
277
      
19,116
      
901
  
1-4 family non-owner occupied
    
4,708
      
52
      
4,746
      
170
  
1-4 family - 2nd lien
    
598
      
3
      
4,017
      
9
  
Resort lending
    
11,186
      
125
      
11,506
      
358
  
Installment
                                
Boat lending
    
106
      
-
      
72
      
-
  
Recreational vehicle lending
    
96
      
1
      
80
      
2
  
Other
    
2,324
      
33
      
2,545
      
109
  
     
56,522
      
670
      
57,198
      
2,334
  
Total
                                
Commercial
                                
Commercial and industrial
    
2,534
      
40
      
2,368
      
109
  
Commercial real estate
    
12,195
      
130
      
11,856
      
641
  
Mortgage
                                
1-4 family owner occupied - jumbo
    
1,440
      
11
      
1,544
      
39
  
1-4 family owner occupied - non-jumbo
    
22,401
      
277
      
19,469
      
905
  
1-4 family non-owner occupied
    
5,024
      
54
      
5,055
      
175
  
1-4 family - 2nd lien
    
1,001
      
3
      
4,416
      
9
  
Resort lending
    
11,263
      
125
      
11,583
      
358
  
Installment
                                
Boat lending
    
106
      
-
      
72
      
-
  
Recreational vehicle lending
    
96
      
1
      
80
      
2
  
Other
    
2,324
      
33
      
2,545
      
109
  
Total
  
$
58,384
    
$
674
    
$
58,988
    
$
2,347
  

(1)
Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.


Cash receipts on impaired loans on non-accrual status are generally applied to the principal balance.

TDRs follow:

  
September 30, 2021
  
   
Commercial
    
Retail (1)
    
Total
  
   
(In thousands)
  
Performing TDRs
  
$
4,692
    
$
32,037
    
$
36,729
  
Non-performing TDRs (2)
    
-
      
1,198
(3) 
    
1,198
  
Total
  
$
4,692
    
$
33,235
    
$
37,927
  

 
December 31, 2020
  
   
Commercial
    
Retail (1)
    
Total
  
   
(In thousands)
  
Performing TDRs
  
$
7,956
    
$
36,385
    
$
44,341
  
Non-performing TDRs (2)
    
1,148
      
1,584
(3) 
    
2,732
  
Total
  
$
9,104
    
$
37,969
    
$
47,073
  

(1)
Retail loans include mortgage and installment loan portfolio segments.
(2)
Included in non-performing loans table above.
(3)
Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis.

We allocated $3.7 million and $4.8 million of reserves to customers whose loan terms have been modified in troubled debt restructurings (“TDR”) at September 30, 2021 and December 31, 2020, respectively.

During the nine months ended September 30, 2020, the terms of certain loans were modified as TDRs as these loan modifications did not qualify for relief from TDR accounting under the CARES Act (there were no TDR modifications during the nine months ended September 30, 2021). The modification of the terms of such loans generally included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for a new loan with similar risk; or a permanent reduction of the recorded investment in the loan.

Modifications involving a reduction of the stated interest rate of the loan have generally been for periods ranging from 9 months to 36 months but have extended to as much as 480 months in certain circumstances. Modifications involving an extension of the maturity date have generally been for periods ranging from 1 month to 60 months but have extended to as much as 230 months in certain circumstances.

Loans that have been classified as TDRs during the three-month periods ended September 30 follow:

  
Number of
Contracts
    
Pre-modification
Recorded
Balance
    
Post-modification
Recorded
Balance
  
   
(Dollars in thousands)
  
2021
                  
Commercial
                  
Commercial and industrial
    
-
    
$
-
    
$
-
  
Commercial real estate
    
-
      
-
      
-
  
Mortgage
                        
1-4 family owner occupied - jumbo
    
-
      
-
      
-
  
1-4 family owner occupied - non-jumbo
    
-
      
-
      
-
  
1-4 family non-owner occupied
    
-
      
-
      
-
  
1-4 family - 2nd lien
    
-
      
-
      
-
  
Resort lending
    
-
      
-
      
-
  
Installment
                        
Boat lending
    
-
      
-
      
-
  
Recreational vehicle lending
    
-
      
-
      
-
  
Other
    
-
      
-
      
-
  
Total
    
-
    
$
-
    
$
-
  
                         
2020
                        
Commercial
                        
Commercial and industrial
    
-
    
$
-
    
$
-
  
Commercial real estate
    
-
      
-
      
-
  
Mortgage
                        
1-4 family owner occupied - jumbo
    
-
      
-
      
-
  
1-4 family owner occupied - non-jumbo
    
1
      
92
      
95
  
1-4 family non-owner occupied
    
1
      
52
      
54
  
1-4 family - 2nd lien
    
-
      
-
      
-
  
Resort lending
    
-
      
-
      
-
  
Installment
                        
Boat lending
    
-
      
-
      
-
  
Recreational vehicle lending
    
-
      
-
      
-
  
Other
    
1
      
19
      
19
  
Total
    
3
    
$
163
    
$
168
  

Loans that have been classified as TDRs during the nine-month periods ended September 30 follow:

 
  
Number of
Contracts
    
Pre-modification
Balance
    
Post-modification
Balance
  
 
  
(Dollars in thousands)
  
2021
                  
Commercial
                  
Commercial and industrial
    
-
    
$
-
    
$
-
  
Commercial real estate
    
-
      
-
      
-
  
Mortgage
                        
1-4 family owner occupied - jumbo
    
-
      
-
      
-
  
1-4 family owner occupied - non-jumbo
    
-
      
-
      
-
  
1-4 family non-owner occupied
    
-
      
-
      
-
  
1-4 family - 2nd lien
    
-
      
-
      
-
  
Resort lending
    
-
      
-
      
-
  
Installment
                        
Boat lending
    
-
      
-
      
-
  
Recreational vehicle lending
    
-
      
-
      
-
  
Other
    
-
      
-
      
-
  
Total
    
-
    
$
-
    
$
-
  
 
                        
2020
                        
Commercial
                        
Commercial and industrial
    
7
    
$
1,207
    
$
1,207
  
Commercial real estate
    
4
      
7,012
      
7,012
  
Mortgage
                        
1-4 family owner occupied - jumbo
    
-
      
-
      
-
  
1-4 family owner occupied - non-jumbo
    
3
      
195
      
203
  
1-4 family non-owner occupied
    
2
      
111
      
116
  
1-4 family - 2nd lien
    
2
      
45
      
46
  
Resort lending
    
-
      
-
      
-
  
Installment
                        
Boat lending
    
-
      
-
      
-
  
Recreational vehicle lending
    
-
      
-
      
-
  
Other
    
2
      
52
      
53
  
Total
    
20
    
$
8,622
    
$
8,637
  

There have been no TDR modifications in 2021 and consequently no impact on the allowance for credit losses and no charge offs during the three- or nine months ended September 30, 2021.

The troubled debt restructurings described above for 2020 increased the allowance for credit losses by $0.01 million and resulted in zero charge offs during the three months ended September 30, 2020, and increased the allowance for credit losses by $0.09 million and resulted in zero charge offs during the nine months ended September 30, 2020.

There were no TDRs that subsequently defaulted within twelve months following the modification during the three and nine months periods ended September 30, 2021 and 2020.

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.

Non-TDR Loan Modifications and Paycheck Protection Program (“PPP”) due to COVID-19 - On March 22, 2020, the federal banking agencies issued an “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus”. This guidance encourages financial institutions to work prudently with borrowers that may be unable to meet their contractual obligations because of the effects of COVID-19. The guidance goes on to explain that in consultation with the Financial Accounting Standards Board staff that the federal banking agencies conclude that short-term modifications (e.g. six months or less) made on a good faith basis to borrowers who were current (less than 30 days past due) as of the implementation date of a relief program are not TDRs.  In addition, on March 27, 2020, the CARES Act was signed into law.  Section 4013 of the CARES Act also addressed COVID-19 related modifications and specified that COVID-19 related modifications on loans that were current (less than 30 days past due) as of December 31, 2019 are not TDRs.  We are assisting both commercial and retail (mortgage and installment) borrowers with reduced or suspended payments. Commercial loan accommodations are typically a three month interest-only period while retail loan (mortgage and installment) forbearances have primarily been payment suspensions for three months. For loans subject to these forbearance agreements each borrower is required to resume making regularly scheduled loan payments at the end of the forbearance period. The deferred principal and interest will be repaid based upon individualized agreements.  Options for repayment include separate repayment plans, extending the term of the loan or re-amortizing the loan based upon the affordability of the payment in relationship to a reduced income. While some borrowers may elect to make a lump sum payment, we anticipate the majority will require some type of repayment plan. During the forbearance period, the loan will not be reported as past due in keeping with the guidance discussed previously.

A summary of accommodations entered into under this guidance as of September 30, 2021 follows:

Commercial and Retail Loan COVID-19 Accomodations

  
Covid-19 Accomodations
    
Total
    
% of Total
  
Loan Category
  
Loans (#)
    
Loans ($)
    
Loans
    
Loans
  
         
(Dollars in thousands)
        
Commercial
    
-
    
$
-
    
$
1,222,802
      
0.0
%
Mortgage
    
39
      
5,901
      
1,100,992
      
0.5
%
Installment
    
7
      
109
      
560,184
      
0.0
%
Total
    
46
    
$
6,010
    
$
2,883,978
      
0.2
%
Mortgage loans serviced for others(1)
    
64
    
$
7,986
    
$
3,237,251
      
0.2
%

1)
We have delegated authority from all investors to grant these deferrals on their behalf.

Information on subsequent accommodation extensions as of September 30, 2021 follows:

Commercial and Retail Loan COVID-19 Subsequent Accomodations (1)

Loan Category
  
Loans (#)
    
Loans ($)
  
   
(Dollars in thousands)
  
Commercial
    
-
    
$
-
  
Mortgage
    
34
      
4,315
  
Installment
    
7
      
109
  
Total
    
41
    
$
4,424
  

1)
Subsequent accommodations are extensions of the original accommodations that were given as summarized in the paragraph above.

The CARES Act also included an initial $349 billion loan program administered through the U.S. Small Business Administration (“SBA”) referred to as the PPP. Under the PPP, small businesses and other entities and individuals could apply for loans from existing SBA lenders and other approved regulated lenders that enrolled in the program, subject to numerous limitations and eligibility criteria. We are participating as a lender in the PPP. The PPP opened on April 3, 2020 intending to provide American small businesses with eight weeks of cash-flow assistance through 100 percent federally guaranteed loans through the SBA. In late April 2020 the Paycheck Protection Program and Health Care Enhancement Act, added another $310 billion in funding while the Paycheck Protection Program Flexibility Act made certain changes to the program, by allowing for more time to spend the funds, and making it easier to get a loan fully forgiven. The PPP initially closed on August 8, 2020 (“Round 1”). On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (‘‘Economic Aid Act’’) was signed into law which allocated an additional $284 billion in funding for the PPP (“Round 2”). The Economic Aid Act reopened the PPP through March 31, 2021 with generally the same terms and conditions as originally enacted under the CARES Act while clarifying eligibility and ineligibility for certain entities and expanding the permitted uses of PPP funds. In addition, the Economic Aid Act simplified the loan forgiveness process for PPP loans of $150,000 or less. The Economic Aid Act also established second draw loans for entities that had already used the initial PPP funds, subject to numerous limitations and eligibility criteria. PPP Round 2 loans are eligible for forgiveness similar to Round 1 PPP loans, subject to limitations set forth in the Economic Aid Act.  Round 2 closed on May 31, 2021.

The following table summarizes PPP loans outstanding:

Paycheck Protection Program

  
As of September 30, 2021
    
As of December 31, 2020
  
   
Amount (#)
    
Amount
    
Amount (#)
    
Amount
  
   
(Dollars in thousands)
    
(Dollars in thousands)
  
Closed and outstanding - Round 1 loans
    
20
    
$
1,262
      
1,483
    
$
169,782
  
Closed and outstanding - Round 2 loans
    
806
      
88,888
      
-
      
-
  
Total closed and outstanding
    
826
    
$
90,150
      
1,483
    
$
169,782
  
Unaccreted net fees remaining at period end
          
$
3,178
            
$
3,216
  

PPP loans are included in the commercial and industrial class of the commercial loan portfolio segment. As these loans are 100% guaranteed through the SBA the allowance for credit losses recorded on these loans is zero.  Interest and fees on loans in our condensed consolidated statement of operations includes $2.6 million and $6.5 million during the three and nine month periods ended September 30, 2021, related to the accretion of net loan fees on PPP loans. Accretion of net loan fees on PPP loans was $1.3 million and $2.3 million in the three and nine month periods in 2020, respectively.

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 table summarizes loan ratings by loan class for our commercial portfolio loan segment as of September 30, 2021:

  
Commercial
  
   
Term Loans Amortized Cost Basis by Origination Year
    
Revolving
Loans
Amortized
        
   
2021
    
2020
    
2019
    
2018
    
2017
    
Prior
    
Cost Basis
    
Total
  
   
(In thousands)
  
September 30, 2021
                                                
Commercial and industrial
                                                
Non-watch (1-6)
  
$
155,583
    
$
71,787
    
$
59,607
    
$
49,692
    
$
44,992
    
$
97,219
    
$
135,312
    
$
614,192
  
Watch (7-8)
    
124
      
47
      
775
      
1,507
      
280
      
4,846
      
237
      
7,816
  
Substandard Accrual (9)
    
-
      
-
      
1,199
      
265
      
-
      
1,303
      
175
      
2,942
  
Non-Accrual (10-11)
    
-
      
132
      
-
      
-
      
-
      
110
      
-
      
242
  
Total
  
$
155,707
    
$
71,966
    
$
61,581
    
$
51,464
    
$
45,272
    
$
103,478
    
$
135,724
    
$
625,192
  
Accrued interest excluded from total
  
$
584
    
$
155
    
$
107
    
$
235
    
$
108
    
$
237
    
$
201
    
$
1,627
  
                                                                 
Commercial real estate
                                                                
Non-watch (1-6)
  
$
78,757
    
$
54,801
    
$
100,292
    
$
78,449
    
$
40,131
    
$
187,739
    
$
41,301
    
$
581,470
  
Watch (7-8)
    
-
      
355
      
3,069
      
7,781
      
1,749
      
859
      
-
      
13,813
  
Substandard Accrual (9)
    
-
      
-
      
-
      
1,207
      
1,120
      
-
      
-
      
2,327
  
Non-Accrual (10-11)
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total
  
$
78,757
    
$
55,156
    
$
103,361
    
$
87,437
    
$
43,000
    
$
188,598
    
$
41,301
    
$
597,610
  
Accrued interest excluded from total
  
$
105
    
$
79
    
$
211
    
$
167
    
$
94
    
$
347
    
$
69
    
$
1,072
  
                                                                 
Total Commercial
                                                                
Non-watch (1-6)
  
$
234,340
    
$
126,588
    
$
159,899
    
$
128,141
    
$
85,123
    
$
284,958
    
$
176,613
    
$
1,195,662
  
Watch (7-8)
    
124
      
402
      
3,844
      
9,288
      
2,029
      
5,705
      
237
      
21,629
  
Substandard Accrual (9)
    
-
      
-
      
1,199
      
1,472
      
1,120
      
1,303
      
175
      
5,269
  
Non-Accrual (10-11)
    
-
      
132
      
-
      
-
      
-
      
110
      
-
      
242
  
Total
  
$
234,464
    
$
127,122
    
$
164,942
    
$
138,901
    
$
88,272
    
$
292,076
    
$
177,025
    
$
1,222,802
  
Accrued interest excluded from total
  
$
689
    
$
234
    
$
318
    
$
402
    
$
202
    
$
584
    
$
270
    
$
2,699
  

The following table summarizes loan ratings by loan class for our commercial portfolio loan segment as of December 31, 2020:

  
Commercial
  
   
Non-watch
1-6
    
Watch
7-8
    
Substandard
Accrual
9
    
Non-
Accrual
10-11
    
Total
  
               
(In thousands)
              
December 31, 2020
                              
Commercial and industrial
  
$
637,826
    
$
32,765
    
$
4,341
    
$
1,387
    
$
676,319
  
Commercial real estate
    
561,382
      
5,978
      
2,272
      
-
      
569,632
  
Total
  
$
1,199,208
    
$
38,743
    
$
6,613
    
$
1,387
    
$
1,245,951
  
Accrued interest included in total
  
$
3,408
    
$
105
    
$
23
    
$
-
    
$
3,536
  

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 September 30, 2021:

  
Mortgage (1)
  
   
Term Loans Amortized Cost Basis by Origination Year
    
Revolving Loans Amortized
        
   
2021
    
2020
    
2019
    
2018
    
2017
    
Prior
    
Cost Basis
    
Total
  
   
(In thousands)
  
September 30, 2021
                                                
1-4 family owner occupied - jumbo
                                                
_800 and above
  
$
25,061
    
$
29,107
    
$
8,113
    
$
2,998
    
$
1,495
    
$
1,007
    
$
889
    
$
68,670
  
_750-799
    
132,430
      
96,341
      
38,487
      
10,581
      
14,111
      
3,105
      
1,759
      
296,814
  
_700-749
    
52,125
      
30,359
      
12,369
      
5,303
      
10,793
      
5,331
      
-
      
116,280
  
_650-699
    
7,499
      
14,416
      
8,275
      
4,822
      
7,529
      
1,571
      
-
      
44,112
  
_600-649
    
-
      
1,455
      
2,794
      
-
      
1,531
      
1,680
      
-
      
7,460
  
_550-599
    
-
      
1,888
      
-
      
-
      
553
      
-
      
-
      
2,441
  
_500-549
    
-
      
-
      
474
      
453
      
607
      
-
      
-
      
1,534
  
Under 500
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Unknown
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total
  
$
217,115
    
$
173,566
    
$
70,512
    
$
24,157
    
$
36,619
    
$
12,694
    
$
2,648
    
$
537,311
  
Accrued interest excluded from total
  
$
403
    
$
382
    
$
187
    
$
129
    
$
94
    
$
35
    
$
3
    
$
1,233
  
                                                                 
1-4 family owner occupied - non-jumbo
                                                                
_800 and above
  
$
5,982
    
$
6,711
    
$
5,233
    
$
2,363
    
$
3,612
    
$
4,779
    
$
4,361
    
$
33,041
  
_750-799
    
10,337
      
24,756
      
7,702
      
7,679
      
11,391
      
11,561
      
10,960
      
84,386
  
_700-749
    
5,144
      
11,704
      
7,323
      
3,393
      
5,060
      
22,497
      
3,674
      
58,795
  
_650-699
    
8,811
      
5,551
      
4,045
      
2,405
      
2,572
      
11,585
      
2,038
      
37,007
  
_600-649
    
792
      
2,008
      
1,587
      
1,779
      
3,059
      
9,433
      
115
      
18,773
  
_550-599
    
-
      
-
      
76
      
1,628
      
494
      
6,814
      
189
      
9,201
  
_500-549
    
-
      
-
      
410
      
98
      
1,297
      
3,983
      
18
      
5,806
  
Under 500
    
-
      
406
      
266
      
34
      
340
      
1,165
      
-
      
2,211
  
Unknown
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total
  
$
31,066
    
$
51,136
    
$
26,642
    
$
19,379
    
$
27,825
    
$
71,817
    
$
21,355
    
$
249,220
  
Accrued interest excluded from total
  
$
170
    
$
114
    
$
94
    
$
68
    
$
98
    
$
224
    
$
53
    
$
821
  
                                                                 
1-4 family non-owner occupied
                                                                
_800 and above
  
$
8,917
    
$
3,995
    
$
2,804
    
$
1,135
    
$
3,625
    
$
5,865
    
$
2,271
    
$
28,612
  
_750-799
    
32,412
      
23,479
      
11,789
      
3,533
      
5,563
      
10,902
      
6,963
      
94,641
  
_700-749
    
12,243
      
7,895
      
1,539
      
2,748
      
2,150
      
6,683
      
3,356
      
36,614
  
_650-699
    
1,683
      
852
      
1,257
      
580
      
442
      
5,840
      
1,048
      
11,702
  
_600-649
    
-
      
-
      
40
      
21
      
141
      
2,103
      
29
      
2,334
  
_550-599
    
-
      
58
      
85
      
248
      
28
      
1,409
      
128
      
1,956
  
_500-549
    
-
      
-
      
-
      
-
      
-
      
633
      
-
      
633
  
Under 500
    
-
      
-
      
-
      
-
      
-
      
304
      
-
      
304
  
Unknown
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total
  
$
55,255
    
$
36,279
    
$
17,514
    
$
8,265
    
$
11,949
    
$
33,739
    
$
13,795
    
$
176,796
  
Accrued interest excluded from total
  
$
105
    
$
96
    
$
52
    
$
41
    
$
36
    
$
116
    
$
49
    
$
495
  
                                                                 
1-4 family - 2nd lien
                                                                
800 and above
  
$
305
    
$
343
    
$
198
    
$
278
    
$
264
    
$
309
    
$
9,253
    
$
10,950
  
_750-799
    
1,921
      
3,401
      
1,265
      
1,460
      
2,190
      
2,530
      
26,881
      
39,648
  
_700-749
    
674
      
1,222
      
685
      
608
      
1,290
      
1,910
      
15,353
      
21,742
  
_650-699
    
14
      
271
      
453
      
278
      
742
      
1,668
      
6,219
      
9,645
  
_600-649
    
-
      
165
      
-
      
98
      
101
      
1,286
      
1,118
      
2,768
  
_550-599
    
-
      
-
      
81
      
138
      
33
      
887
      
587
      
1,726
  
_500-549
    
-
      
-
      
233
      
-
      
54
      
335
      
257
      
879
  
Under 500
    
-
      
-
      
128
      
3
      
61
      
4
      
140
      
336
  
Unknown
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total
  
$
2,914
    
$
5,402
    
$
3,043
    
$
2,863
    
$
4,735
    
$
8,929
    
$
59,808
    
$
87,694
  
Accrued interest excluded from total
  
$
5
    
$
11
    
$
10
    
$
10
    
$
14
    
$
38
    
$
209
    
$
297
  


 
Mortgage - continued (1)
  
   
Term Loans Amortized Cost Basis by Origination Year
    
Revolving
Loans
Amortized
        
   
2021
    
2020
    
2019
    
2018
    
2017
    
Prior
    
Cost Basis
    
Total
  
   
(In thousands)
  
September 30, 2021
                                                
Resort lending
                                                
_800 and above
  
$
101
    
$
710
    
$
189
    
$
275
    
$
-
    
$
8,296
    
$
-
    
$
9,571
  
_750-799
    
572
      
609
      
67
      
445
      
277
      
19,890
      
-
      
21,860
  
_700-749
    
-
      
119
      
-
      
374
      
67
      
9,517
      
-
      
10,077
  
_650-699
    
754
      
-
      
-
      
-
      
-
      
5,400
      
-
      
6,154
  
_600-649
    
-
      
-
      
-
      
-
      
-
      
1,503
      
-
      
1,503
  
_550-599
    
-
      
-
      
-
      
-
      
-
      
518
      
-
      
518
  
_500-549
    
-
      
-
      
-
      
-
      
-
      
288
      
-
      
288
  
Under 500
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Unknown
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total
  
$
1,427
    
$
1,438
    
$
256
    
$
1,094
    
$
344
    
$
45,412
    
$
-
    
$
49,971
  
Accrued interest excluded from total
  
$
2
    
$
4
    
$
1
    
$
3
    
$
1
    
$
141
    
$
-
    
$
152
  
                                                                 
Total Mortgage
                                                                
_800 and above
  
$
40,366
    
$
40,866
    
$
16,537
    
$
7,049
    
$
8,996
    
$
20,256
    
$
16,774
    
$
150,844
  
_750-799
    
177,672
      
148,586
      
59,310
      
23,698
      
33,532
      
47,988
      
46,563
      
537,349
  
_700-749
    
70,186
      
51,299
      
21,916
      
12,426
      
19,360
      
45,938
      
22,383
      
243,508
  
_650-699
    
18,761
      
21,090
      
14,030
      
8,085
      
11,285
      
26,064
      
9,305
      
108,620
  
_600-649
    
792
      
3,628
      
4,421
      
1,898
      
4,832
      
16,005
      
1,262
      
32,838
  
_550-599
    
-
      
1,946
      
242
      
2,014
      
1,108
      
9,628
      
904
      
15,842
  
_500-549
    
-
      
-
      
1,117
      
551
      
1,958
      
5,239
      
275
      
9,140
  
Under 500
    
-
      
406
      
394
      
37
      
401
      
1,473
      
140
      
2,851
  
Unknown
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total
  
$
307,777
    
$
267,821
    
$
117,967
    
$
55,758
    
$
81,472
    
$
172,591
    
$
97,606
    
$
1,100,992
  
Accrued interest excluded from total
  
$
685
    
$
607
    
$
344
    
$
251
    
$
243
    
$
554
    
$
314
    
$
2,998
  

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


 
Installment (1)
  
   
Term Loans Amortized Cost Basis by Origination Year
  
   
2021
    
2020
    
2019
    
2018
    
2017
    
Prior
    
Total
  
   
(In thousands)
  
September 30, 2021
                                          
Boat lending
                                          
_800 and above
  
$
10,987
    
$
5,319
    
$
6,684
    
$
5,542
    
$
3,385
    
$
4,879
    
$
36,796
  
_750-799
    
43,158
      
26,970
      
22,603
      
18,139
      
10,682
      
12,324
      
133,876
  
_700-749
    
16,626
      
10,219
      
8,701
      
5,272
      
3,406
      
4,362
      
48,586
  
_650-699
    
2,025
      
2,075
      
1,705
      
1,301
      
1,064
      
1,798
      
9,968
  
_600-649
    
58
      
121
      
311
      
221
      
196
      
417
      
1,324
  
_550-599
    
-
      
15
      
48
      
171
      
74
      
328
      
636
  
_500-549
    
-
      
-
      
31
      
3
      
206
      
92
      
332
  
Under 500
    
-
      
-
      
-
      
20
      
8
      
-
      
28
  
Unknown
    
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total
  
$
72,854
    
$
44,719
    
$
40,083
    
$
30,669
    
$
19,021
    
$
24,200
    
$
231,546
  
Accrued interest excluded from total
  
$
151
    
$
108
    
$
111
    
$
79
    
$
50
    
$
54
    
$
553
  
                                                         
Recreational vehicle lending
                                                        
_800 and above
  
$
14,475
    
$
4,532
    
$
5,344
    
$
4,957
    
$
2,644
    
$
3,786
    
$
35,738
  
_750-799
    
56,744
      
24,800
      
19,363
      
12,607
      
6,152
      
7,545
      
127,211
  
_700-749
    
28,114
      
10,949
      
6,054
      
4,543
      
1,707
      
2,481
      
53,848
  
_650-699
    
2,659
      
3,035
      
2,304
      
997
      
437
      
1,071
      
10,503
  
_600-649
    
39
      
297
      
455
      
400
      
160
      
206
      
1,557
  
_550-599
    
-
      
86
      
154
      
106
      
64
      
162
      
572
  
_500-549
    
-
      
32
      
-
      
158
      
12
      
80
      
282
  
Under 500
    
-
      
-
      
21
      
-
      
10
      
9
      
40
  
Unknown
    
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total
  
$
102,031
    
$
43,731
    
$
33,695
    
$
23,768
    
$
11,186
    
$
15,340
    
$
229,751
  
Accrued interest excluded from total
  
$
235
    
$
106
    
$
86
    
$
60
    
$
30
    
$
32
    
$
549
  
                                                         
Other
                                                        
_800 and above
  
$
2,935
    
$
1,656
    
$
1,744
    
$
1,108
    
$
444
    
$
881
    
$
8,768
  
_750-799
    
11,318
      
9,893
      
6,445
      
3,367
      
2,335
      
3,139
      
36,497
  
_700-749
    
9,294
      
6,098
      
4,176
      
2,263
      
1,176
      
2,058
      
25,065
  
_650-699
    
17,399
      
2,351
      
1,569
      
743
      
702
      
1,432
      
24,196
  
_600-649
    
599
      
343
      
419
      
353
      
231
      
587
      
2,532
  
_550-599
    
1
      
72
      
56
      
119
      
82
      
159
      
489
  
_500-549
    
-
      
32
      
45
      
130
      
61
      
91
      
359
  
Under 500
    
-
      
-
      
43
      
1
      
17
      
29
      
90
  
Unknown
    
891
      
-
      
-
      
-
      
-
      
-
      
891
  
Total
  
$
42,437
    
$
20,445
    
$
14,497
    
$
8,084
    
$
5,048
    
$
8,376
    
$
98,887
  
Accrued interest excluded from total
  
$
67
    
$
44
    
$
43
    
$
23
    
$
13
    
$
39
    
$
229
  
                                                         
Total installment
                                                        
_800 and above
  
$
28,397
    
$
11,507
    
$
13,772
    
$
11,607
    
$
6,473
    
$
9,546
    
$
81,302
  
_750-799
    
111,220
      
61,663
      
48,411
      
34,113
      
19,169
      
23,008
      
297,584
  
_700-749
    
54,034
      
27,266
      
18,931
      
12,078
      
6,289
      
8,901
      
127,499
  
_650-699
    
22,083
      
7,461
      
5,578
      
3,041
      
2,203
      
4,301
      
44,667
  
_600-649
    
696
      
761
      
1,185
      
974
      
587
      
1,210
      
5,413
  
_550-599
    
1
      
173
      
258
      
396
      
220
      
649
      
1,697
  
_500-549
    
-
      
64
      
76
      
291
      
279
      
263
      
973
  
Under 500
    
-
      
-
      
64
      
21
      
35
      
38
      
158
  
Unknown
    
891
      
-
      
-
      
-
      
-
      
-
      
891
  
Total
  
$
217,322
    
$
108,895
    
$
88,275
    
$
62,521
    
$
35,255
    
$
47,916
    
$
560,184
  
Accrued interest excluded from total
  
$
453
    
$
258
    
$
240
    
$
162
    
$
93
    
$
125
    
$
1,331
  

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

The following tables summarize credit scores by loan class for our mortgage and installment loan portfolio segments at December 31, 2020:

  
Mortgage
  
   
1-4 Family
Owner
Occupied -
Jumbo
    
1-4 Family
Owner
Occupied -
Non-jumbo
    
1-4 Family
Non-owner
Occupied
    
1-4 Family
2nd Lien
    
Resort
Lending
    
Total
  
   
(In thousands)
  
December 31, 2020
                                    
_800 and above
  
$
61,077
    
$
40,187
    
$
25,468
    
$
12,490
    
$
9,546
    
$
148,768
  
_750-799
    
223,177
      
70,642
      
82,124
      
42,138
      
27,530
      
445,611
  
_700-749
    
101,086
      
75,489
      
30,326
      
22,962
      
11,726
      
241,589
  
_650-699
    
40,296
      
44,344
      
13,182
      
11,269
      
6,393
      
115,484
  
_600-649
    
11,146
      
18,519
      
4,303
      
2,703
      
1,670
      
38,341
  
_550-599
    
-
      
11,021
      
2,388
      
1,608
      
917
      
15,934
  
_500-549
    
3,396
      
5,129
      
1,580
      
1,012
      
192
      
11,309
  
_Under 500
    
-
      
2,242
      
405
      
348
      
73
      
3,068
  
_Total
  
$
440,178
    
$
267,573
    
$
159,776
    
$
94,530
    
$
58,047
    
$
1,020,104
  
Accrued interest included in total
  
$
1,301
    
$
1,641
    
$
587
    
$
373
    
$
276
    
$
4,178
  

 
Installment
  
   
Boat
Lending
    
Recreational
Vehicle
Lending
    
Other
    
Total
  
   
(In thousands)
  
December 31, 2020
                        
_800 and above
  
$
32,231
    
$
29,223
    
$
9,154
    
$
70,608
  
_750-799
    
123,689
      
95,890
      
37,512
      
257,091
  
_700-749
    
38,223
      
33,476
      
25,262
      
96,961
  
_650-699
    
10,189
      
8,794
      
21,138
      
40,121
  
_600-649
    
2,083
      
1,305
      
3,730
      
7,118
  
_550-599
    
661
      
551
      
1,299
      
2,511
  
_500-549
    
342
      
283
      
767
      
1,392
  
_Under 500
    
95
      
52
      
63
      
210
  
_Unknown
    
-
      
-
      
510
      
510
  
_Total
  
$
207,513
    
$
169,574
    
$
99,435
    
$
476,522
  
Accrued interest included in total
  
$
572
    
$
457
    
$
156
    
$
1,185
  

Foreclosed residential real estate properties included in other real estate and repossessed assets on our Condensed Consolidated Statements of Financial Condition totaled $0.2 million and $0.7 million at September 30, 2021 and December 31, 2020, 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 $0.3 million at September 30, 2021 and December 31, 2020, respectively.

During the first quarter of 2020, we securitized $26.3 million of portfolio residential fixed rate mortgage loans servicing retained with Freddie Mac and recognized a gain on sale of $0.72 million.  We also sold $2.4 million of portfolio residential fixed rate mortgage loans servicing retained into the secondary market and recognized a gain on sale of $0.07 million.  These transactions were done primarily for asset/liability management purposes.