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Loans
 6 Months Ended
Jun. 30, 2020
Loans and Leases Receivable Disclosure [Abstract]  
Financing Receivables [Text Block] Loans
Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their unpaid principal balances, adjusted for any charge-offs, the ALL, and any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans.
Loan interest income is accrued daily on outstanding balances. The following accounting policies, related to accrual and nonaccrual loans, apply to all portfolio segments and loan classes, which the Company considers to be the same. The accrual of interest is normally discontinued when a loan is specifically determined to be impaired and/or management believes, after considering collection efforts and other factors, that the borrower's financial condition is such that collection of interest is doubtful. Generally, any unpaid interest previously accrued on those loans is reversed against current period interest income. A loan may be restored to accrual status when its financial status has significantly improved and there is no principal or interest past due. A loan may also be restored to accrual status if the borrower makes six consecutive monthly payments or the lump sum equivalent. Income on nonaccrual loans is generally not recognized unless a loan is returned to accrual status or after all principal has been collected. Interest income generally is not recognized on impaired loans unless the likelihood of further loss is remote. Interest payments received on such loans are generally applied as a reduction of the loan principal balance. Delinquency status is determined based on contractual terms for all portfolio segments and loan classes. Loans past due 30 days or more are considered delinquent. Loans are considered in process of foreclosure when a judgment of foreclosure has been issued by the court.
Loan origination fees and direct loan origination costs are deferred and amortized as an adjustment of the related loan's yield using methods that approximate the interest method. The Company generally amortizes these amounts over the estimated average life of the related loans.
The composition of Net loans as of the balance sheet dates was as follows:
June 30,
2020		December 31,
2019
(Dollars in thousands)
Residential real estate$181,957  $192,125  
Construction real estate46,708  69,617  
Commercial real estate314,048  289,883  
Commercial115,464  47,699  
Consumer3,188  3,562  
Municipal31,293  67,358  
    Gross loans692,658  670,244  
Allowance for loan losses(6,888) (6,122) 
Net deferred loan (fees) costs(821) 1,043  
    Net loans$684,949  $665,165  
The Company originated 668 PPP loans totaling $68.5 million classified as commercial loans as of June 30, 2020. There was a total of $2.5 million in origination fees received from the SBA on PPP loans that will be amortized over the respective lives of the loans, of which $234 thousand was recognized in earnings during the three and six months ended June 30, 2020. PPP loans with a carrying value of $2.3 million were pledged as collateral for borrowings from the FRB at June 30, 2020.
Qualifying residential first mortgage loans and certain commercial real estate loans with a carrying value of $230.4 million and $207.7 million were pledged as collateral for borrowings from the FHLB under a blanket lien at June 30, 2020 and December 31, 2019, respectively.
A summary of current, past due and nonaccrual loans as of the balance sheet dates follows:
June 30, 2020Current30-59 Days60-89 Days90 Days and Over and AccruingNonaccrualTotal
(Dollars in thousands)
Residential real estate$179,473  $484  $1,069  $433  $498  $181,957  
Construction real estate46,174  65  16  428  25  46,708  
Commercial real estate311,416  434  380  —  1,818  314,048  
Commercial115,448  —  —  —  16  115,464  
Consumer3,177  7  4  —  —  3,188  
Municipal31,293  —  —  —  —  31,293  
Total$686,981  $990  $1,469  $861  $2,357  $692,658  
December 31, 2019Current30-59 Days60-89 Days90 Days and Over and AccruingNonaccrualTotal
(Dollars in thousands)
Residential real estate$187,022  $2,716  $1,304  $811  $272  $192,125  
Construction real estate68,731  470  19  368  29  69,617  
Commercial real estate286,795  940  150  —  1,998  289,883  
Commercial47,673  —  5  —  21  47,699  
Consumer3,532  21  6  —  3  3,562  
Municipal67,358  —  —  —  —  67,358  
Total$661,111  $4,147  $1,484  $1,179  $2,323  $670,244  
There was one residential real estate loan totaling $50 thousand in process of foreclosure at June 30, 2020 and two residential real estate loans totaling $64 thousand in process of foreclosure at December 31, 2019. In April 2020, the State of Vermont issued a temporary moratorium on foreclosure actions until the end of the COVID-19 emergency period. Aggregate interest on nonaccrual loans not recognized was $331 thousand as of June 30, 2020 and $271 thousand as of December 31, 2019.