
(In thousands)	September 30, 2021		December 31, 2020
Commercial Loans:
Commercial real estate - non owner-occupied	$	1,128,560	$	1,097,975
Commercial real estate - owner-occupied	291,117		271,495
Commercial	352,533		381,494
SBA PPP	81,959		135,095
Total commercial loans	1,854,169		1,886,059
Retail Loans:
Residential real estate	1,222,084		1,054,798
Home equity	218,797		258,573
Consumer	20,253		20,392
Total retail loans	1,461,134		1,333,763
Total loans	$	3,315,303	$	3,219,822

The Company's lending activities are primarily conducted in Maine, but also include loan production offices in Massachusetts and New Hampshire. The Company originates single- and multi-family residential loans, commercial real estate loans, business loans, municipal loans and a variety of consumer loans. In addition, the Company makes loans for the construction of residential homes, multi-family properties and commercial real estate properties. The ability and willingness of borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity within the geographic area and the general economy.

Beginning in April 2020, the Company started funding SBA PPP loans issued to qualifying businesses as part of the federal stimulus package issued due to the COVID-19 pandemic. Effective May 31, 2021, the SBA PPP loan program ended and the Company is no longer originating loans under this program. For the nine months ended September 30, 2021, the Company originated 1,620 SBA PPP loans totaling $102.2 million to qualifying businesses across our markets in need of financial support due to the COVID-19 pandemic. Of these SBA PPP loans originated during 2021, 1,230 loans totaling $78.7 million remain outstanding as of September 30, 2021. For the year ended December 31, 2020, the Company originated 3,034 SBA PPP loans totaling $244.8 million. Of these SBA PPP loans originated during 2020, 120 loans totaling $3.2 million remain outstanding as of September 30, 2021. This program provided qualifying businesses a specialized low-interest loan by the U.S. Treasury Department and is administered by the SBA. The PPP provides borrower guarantees for lenders, as well as loan forgiveness incentives for borrowers that utilize the loan proceeds to cover employee compensation-related business operating costs, and certain other costs up to pre-established limits.

In the normal course of business, the Bank makes loans to certain officers, directors and their associated companies, under terms that are consistent with the Company's lending policies and regulatory requirements and that do not involve more than the normal risk of collectability or present other unfavorable features. At September 30, 2021 and December 31, 2020, outstanding loans to certain officers, directors and their associated companies was less than 5% of the Company's shareholders' equity.

For the three months ended September 30, 2021 and 2020, the Company sold $86.2 million and $182.7 million, respectively, of residential mortgage loans on the secondary market, which resulted in gains on the sale of loans (net of costs) of $2.2 million and $4.3 million, respectively. For the nine months ended September 30, 2021 and 2020, the Company sold $389.6 million and $449.7 million, respectively, of residential mortgage loans on the secondary market which resulted in gains on the sale of loans (net of costs) of $11.3 million and $10.4 million.

At September 30, 2021 and December 31, 2020, the Company had certain residential mortgage loans with a principal balance of $10.8 million and $40.5 million, respectively, designated as held for sale. The Company has elected the fair value option of accounting for its loans held for sale, and at September 30, 2021 and December 31, 2020, recorded an unrealized gain of $37,000 and $1.1 million, respectively. For the three months ended September 30, 2021 and 2020, the Company recorded an unrealized loss on loans held for sale recorded within mortgage banking income, net, on the Company's consolidated statements of income of $216,000 and $47,000, respectively. For the nine months ended September 30, 2021 and 2020, the Company recorded an unrealized (loss) gain on loans held for sale recorded within mortgage banking income, net, on the Company's consolidated statements of income of ($1.0 million) and $695,000, respectively.

The Board of Directors monitors credit risk through: (i) the Directors' Credit Committee, which reviews large credit exposures, monitors external loan review reports, reviews the lending authority for individual loan officers when required, and has approval authority and responsibility for all matters regarding the loan policy and other credit-related policies, including reviewing and monitoring asset quality trends, and concentration levels; and (ii) the Audit Committee, which has approval authority and oversight responsibility for ACL adequacy and methodology.

Credit Risk Administration and the Credit Risk Policy Committee oversee the Company's systems and procedures to monitor the credit quality of its loan portfolio, conduct a loan review program, and maintain the integrity of the loan rating system. The adequacy of the ACL, including the ACL on loans, is overseen by the Management Provision Committee, which is an internal management committee comprised of various Company executives and senior managers across business lines, including Accounting and Finance, Credit Risk, Compliance, and Commercial and Retail Banking. The Management Provision Committee is further supported by other management-level committees to ensure the adequacy of the ACL. The Management Provision Committee supports the oversight efforts of the director-level committees discussed in the paragraph above and the Board of Directors. The Company's practice is to manage its loan portfolio proactively such that management can identify problem credits early, assess and implement effective work-out strategies, and take charge-offs as promptly as practical. In addition, the Company continuously reassesses its underwriting standards in response to credit risk posed by changes in economic conditions.

For purposes of determining the ACL on loans, the Company disaggregates its loans into portfolio segments. Each portfolio segment possesses unique risk characteristics that are considered when determining the appropriate level of allowance. As of September 30, 2021, the Company's loan portfolio segments, as determined based on the unique risk characteristics of each, include the following:

Commercial Real Estate - Non Owner-Occupied. Non-owner occupied commercial real estate loans are, in substance, all commercial real estate loans that are not categorized by the Company as owner-occupied commercial real estate loans. Non owner-occupied commercial estate loans are investment properties in which the primary source for repayment of the loan by the borrower is derived from rental income associated with the property or the proceeds of the sale, refinancing, or permanent refinancing of the property. Non owner-occupied commercial real estate loans consist of mortgage loans to finance investments in real property that may include, but are not limited to, multi-family residential, commercial/retail office space, industrial/warehouse space, hotels, assisted living facilities and other specific use properties. Also included within the non owner-occupied commercial real estate loan segment are construction projects until they are completed. Commercial real estate loans are typically written with amortizing payment structures. Collateral values are determined based upon appraisals and evaluations in accordance with established policy guidelines. Maximum loan-to-value ratios at origination are governed by established policy and regulatory guidelines.

Commercial Real Estate - Owner-Occupied. Generally, owner-occupied commercial real estate loans are properties that are owned and operated by the borrower, and the primary source for repayment is the cash flow from the ongoing operations and activities conducted by the borrower's business. Owner-occupied commercial real estate loans consist of mortgage loans to finance investments in real property that may include, but are not limited to, commercial/retail office space, restaurants, educational and medical practice facilities and other specific use properties. Commercial real estate loans are typically written with amortizing payment structures. Collateral values are determined based upon appraisals and evaluations in accordance with established policy guidelines. Maximum loan-to-value ratios at origination are governed by established policy and regulatory guidelines.

Commercial. Commercial loans consist of revolving and term loan obligations extended to business and corporate enterprises for the purpose of financing working capital and/or capital investment. Collateral generally consists of pledges of business assets including, but not limited to, accounts receivable, inventory, plant and equipment, and/or real estate, if applicable. Commercial loans are primarily paid by the operating cash flow of the borrower. Commercial loans may be secured or unsecured.

SBA PPP. SBA PPP loans are unsecured, fully-guaranteed commercial loans backed by the SBA, issued to qualifying small businesses as part of federal stimulus issued in response to the COVID-19 pandemic. Loans made under the program during the year ended December 31, 2020 have terms of two or five years, and those made during the nine months ended September 30, 2021 have a term of five years. SBA PPP loans are to be used by the borrower to offset certain payroll and other operating costs, such as rent and utilities. The loan and accrued interest, or a portion thereof, is eligible for forgiveness by the SBA should the qualifying small business meet certain conditions. These loans were originated under the guidance of the SBA, which has been subject to change. Effective May 31, 2021, the SBA PPP loan program ended and the Company is no longer originating loans under this program.

Residential Real Estate. Residential real estate loans held in the Company's loan portfolio are made to borrowers who demonstrate the ability to make scheduled payments with full consideration to underwriting factors. Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan-to-value ratios within established policy guidelines. Collateral consists of mortgage liens on one- to four-family residences, including for investment purposes.

Home Equity. Home equity loans and lines of credit are made to qualified individuals and are secured by senior or junior mortgage liens on owner-occupied one- to four-family homes, condominiums, or vacation homes. The home equity loan has a fixed rate and is billed as equal payments comprised of principal and interest. The home equity line of credit has a variable rate and is billed as interest-only payments during the draw period. At the end of the draw period, the home equity line of credit is billed as a percentage of the principal balance plus all accrued interest. Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan-to-value ratios within established policy guidelines.

Consumer. Consumer loan products include personal lines of credit and amortizing loans made to qualified individuals for various purposes such as education, auto loans, debt consolidation, personal expenses or overdraft protection. Borrower qualifications include favorable credit history combined with supportive income and collateral requirements within established policy guidelines. Consumer loans may be secured or unsecured.

The following table presents the activity in the ACL on loans, as reported under CECL, for the periods indicated:


	Commercial Real Estate
(In thousands)	Non Owner-Occupied		Owner- Occupied		Commercial		SBA PPP		Residential Real Estate		Home Equity		Consumer		Total
At or For The Three Months Ended September 30, 2021

Beginning balance, June 30, 2021	$	19,577	$	2,516	$	4,342	$	66	$	3,205	$	2,065	$	289	$	32,060
Loans charged off	—		—		(97)		—		(4)		—		(20)		(121)
Recoveries	—		2		49		—		2		4		7		64
Provision (credit) for loan losses	157		(214)		295		(23)		450		(231)		(165)		269
Ending balance, September 30, 2021	$	19,734	$	2,304	$	4,589	$	43	$	3,653	$	1,838	$	111	$	32,272
At or For The Nine Months Ended September 30, 2021
Beginning balance, December 31, 2020	$	21,778	$	2,832	$	6,703	$	69	$	3,474	$	2,616	$	393	$	37,865
Loans charged off	—		—		(503)		—		(92)		(145)		(88)		(828)
Recoveries	—		7		159		—		72		4		30		272
(Credit) provision for loan losses	(2,044)		(535)		(1,770)		(26)		199		(637)		(224)		(5,037)
Ending balance, September 30, 2021	$	19,734	$	2,304	$	4,589	$	43	$	3,653	$	1,838	$	111	$	32,272
At or For The Year Ended December 31, 2020

Beginning balance, December 31, 2019	$	10,924	$	1,490	$	3,985	$	—	$	5,842	$	2,423	$	507	$	25,171
Impact of adopting CECL(1)	(668)		(90)		1,548		—		(1,129)		792		(220)		233
Loans charged off	(82)		(21)		(1,130)		—		(121)		(317)		(167)		(1,838)
Recoveries	107		13		572		—		292		33		67		1,084
Provision (credit) for loan losses	11,497		1,440		1,728		69		(1,410)		(315)		206		13,215
Ending balance, December 31, 2020	$	21,778	$	2,832	$	6,703	$	69	$	3,474	$	2,616	$	393	$	37,865

During the nine months ended September 30, 2021, there were no significant changes in our CECL modeling methodology to determine the ACL on loans at September 30, 2021. The significant key assumptions used with the ACL on loans calculation at September 30, 2021 and December 31, 2020, included: (i) Company-specific macroeconomic factors (i.e., loss drivers), (ii) our forecast period and reversion speed, (iii) prepayment speeds, and (iv) various qualitative factors.

The ACL on loans, as presented and accounted for under the CECL methodology, decreased $5.6 million during the nine months ended September 30, 2021, to $32.3 million as of September 30, 2021. The decrease in the ACL on loans across all loan segments, with the exception of residential real estate, was driven by an overall improvement in management's forecast of macroeconomic factors over a one-year forecast period. Net loan growth of $167.3 million, or 16%, in the residential real estate loan segment during the during the nine months ended September 30, 2021, drove the increase in the ACL of $179,000 over this period, offsetting the impact of management's improved forecast of macroeconomic factors over the one-year forecast period.

The following table presents activity in the ACL on loans and select loan information by portfolio segment, under the incurred loss methodology, for the periods indicated:


(In thousands)	Commercial Real Estate(1)		Commercial		SBA PPP		Residential Real Estate		Home Equity		Consumer		Total
At or For The Three and Nine Months Ended September 30, 2020
Allowance for the three months ended:
Beginning balance	$	18,386	$	4,849	$	113	$	8,603	$	3,084	$	504	$	35,539
Loans charged off	(33)		(184)		—		(25)		(10)		(55)		(307)
Recoveries	3		139		—		4		—		36		182
Provision (credit)	1,173		(267)		2		124		(51)		19		1,000
Ending balance	$	19,529	$	4,537	$	115	$	8,706	$	3,023	$	504	$	36,414
Allowance for the nine months ended:
Beginning balance	$	12,414	$	3,985	$	—	$	5,842	$	2,423	$	507	$	25,171
Loans charged off	(104)		(857)		—		(121)		(61)		(138)		(1,281)
Recoveries	10		255		—		27		4		56		352
Provision	7,209		1,154		115		2,958		657		79		12,172
Ending balance	$	19,529	$	4,537	$	115	$	8,706	$	3,023	$	504	$	36,414
Allowance balance attributable to loans:
Individually evaluated for impairment	$	36	$	—	$	—	$	371	$	87	$	—	$	494
Collectively evaluated for impairment	19,493		4,537		115		8,335		2,936		504		35,920
Total ending allowance	$	19,529	$	4,537	$	115	$	8,706	$	3,023	$	504	$	36,414
Loans:
Individually evaluated for impairment	$	460	$	171	$	—	$	3,128	$	365	$	—	$	4,124
Collectively evaluated for impairment	1,333,273		375,377		223,838		1,040,975		274,378		22,877		3,270,718
Total ending loans balance	$	1,333,733	$	375,548	$	223,838	$	1,044,103	$	274,743	$	22,877	$	3,274,842

The Company focuses on maintaining a well-balanced and diversified loan portfolio. Despite such efforts, it is recognized that credit concentrations may occasionally emerge as a result of economic conditions, changes in local demand, natural loan growth and runoff. To identify credit concentrations effectively, all commercial and commercial real estate loans are assigned Standard Industrial Classification codes, North American Industry Classification System codes, and state and county codes. Shifts in portfolio concentrations are monitored. As of September 30, 2021, the Company's total exposure to the lessors of nonresidential buildings' industry was 14% of total loans and 32% of total commercial real estate loans. There were no other industry exposures exceeding 10% of the Company's total loan portfolio as of September 30, 2021.

In response to the COVID-19 pandemic, the Company worked with businesses and consumers through the year ended 2020 to provide temporary debt payment relief that generally provided principal and/or interest payment deferrals for a period of 180 days or less. All loans that were granted temporary payment relief during the year ended 2020 complied with the terms of the CARES Act, which was signed into law in March 2020, and bank regulator guidance, and thus were not individually assessed, designated or accounted for as TDRs.

The Company did not issue or extend temporary debt relief to customers due to COVID-19 hardships during the nine months ended September 30, 2021. However, the Company may do so on case-by-case under bank regulator guidance or the Consolidated Appropriations Act of 2021, which extended the provisions within the CARES Act that provided TDR accounting relief to the earlier of: (i) December 31, 2021 or (ii) the date that is 60 days after the date the national emergency concerning the COVID-19 pandemic declared by the President on March 13, 2020 terminates.

At September 30, 2021, the Company did not have any loans operating under temporary short-term payment deferral arrangements due to being impacted by the COVID-19 pandemic, compared to $26.5 million at December 31, 2020. The majority of these loans have returned to normal payment status or have since been fully repaid. Of those loans that were previously operating under a short-term deferral arrangement, $1.0 million were classified as non-accrual and $310,000 were 30-89 days past due as of September 30, 2021.

To further identify loans with similar risk profiles, the Company categorizes each portfolio segment into classes by credit risk characteristic and applies a credit quality indicator to each portfolio segment. The indicators for commercial real estate - non owner-occupied and owner-occupied, commercial and residential real estate portfolio segments are represented by Grades 1 through 10 as outlined below. In general, risk ratings are adjusted periodically throughout the year as updated analysis and review warrants. This process may include, but is not limited to, annual credit and loan reviews, periodic reviews of loan performance metrics, such as delinquency rates, and quarterly reviews of adversely risk rated loans. The Company uses the following definitions when assessing grades for the purpose of evaluating the risk and adequacy of the ACL on loans:

•Grade 1 through 6 — Grades 1 through 6 represent groups of loans that are not subject to adverse criticism as defined in regulatory guidance. Loans in these groups exhibit characteristics that represent low to moderate risks, which is measured using a variety of credit risk criteria, such as cash flow coverage, debt service coverage, balance sheet leverage, liquidity, management experience, industry position, prevailing economic conditions, support from secondary sources of repayment and other credit factors that may be relevant to a specific loan. In general, these loans are supported by properly margined collateral and guarantees of principal parties.

•Grade 7 — Loans with potential weakness (Special Mention). Loans in this category are currently protected based on collateral and repayment capacity and do not constitute undesirable credit risk, but have potential weakness that may result in deterioration of the repayment process at some future date. This classification is used if a negative trend is evident in the obligor’s financial situation. Special mention loans do not sufficiently expose the Company to warrant adverse classification.

•Grade 8 — Loans with definite weakness (Substandard). Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the obligor or by collateral pledged. Borrowers experience difficulty in meeting debt repayment requirements. Deterioration is sufficient to cause the Company to look to the sale of collateral.

•Grade 9 — Loans with potential loss (Doubtful). Loans classified as doubtful have all the weaknesses inherent in the substandard grade with the added characteristic that the weaknesses make collection or liquidation of the loan in full highly questionable and improbable. The possibility of some loss is extremely high, but because of specific pending factors that may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined.

•Grade 10 — Loans with definite loss (Loss). Loans classified as loss are considered uncollectible. The loss classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the asset because recovery and collection time may be protracted.

The Company periodically reassesses asset quality indicators to reflect appropriately the risk composition of the Company’s loan portfolio. Home equity and consumer loans are not individually risk rated, but rather analyzed as groups taking into account delinquency rates and other economic conditions which may affect the ability of borrowers to meet debt service requirements, including interest rates and energy costs. Performing loans include loans that are current and loans that are past due less than 90 days. Loans that are past due over 90 days and non-accrual loans, including TDRs, are considered non-performing.

The Company closely monitors the performance of its loan portfolio. A loan is placed on non-accrual status when the financial condition of the borrower is deteriorating, payment in full of both principal and interest is not expected as scheduled, or principal or interest has been in default for 90 days or more. Exceptions may be made if the asset is secured by collateral sufficient to satisfy both the principal and accrued interest in full and collection is reasonably assured. When one loan to a borrower is placed on non-accrual status, all other loans to the borrower are re-evaluated to determine if they should also be placed on non-accrual status. All previously accrued and unpaid interest is reversed at this time. A loan will return to accrual status when collection of principal and interest is assured and the borrower has demonstrated timely payments of principal and interest for a reasonable period, generally at least six months. Unsecured loans, however, are not normally placed on non-accrual status because they are generally charged-off once their collectability is in doubt.

All loans that were granted temporary payment relief due to the COVID-19 pandemic were current with payments in accordance with the terms of the CARES Act and bank regulatory guidance at the time of initial relief. As of September 30, 2021, all loans that were once granted temporary debt relief and had outstanding principal balances have returned to regular payment status. As of December 31, 2020, the payment status for loans that continued to operate under a payment deferral arrangement were reported based on payment status at the time the deferral was granted to the borrower. Of those loans operating under a short-term deferral arrangement, $1.0 million were classified as non-accrual and $310,000 were 30-89 days past due as of September 30, 2021, compared to $457,000 and $1.2 million, respectively, as of December 31, 2020.


(In thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Loans Outstanding		Loans > 90 Days Past Due and Accruing
September 30, 2021
Commercial real estate - non owner-occupied	$	—	$	—	$	52	$	52	$	1,128,508	$	1,128,560	$	—
Commercial real estate - owner-occupied	86		—		47		133		290,984		291,117
Commercial	557		—		813		1,370		351,163		352,533		—
SBA PPP	—		—		—		—		81,959		81,959		—
Residential real estate	1,056		240		1,158		2,454		1,219,630		1,222,084		—
Home equity	369		30		894		1,293		217,504		218,797		—
Consumer	45		8		28		81		20,172		20,253		—
Total	$	2,113	$	278	$	2,992	$	5,383	$	3,309,920	$	3,315,303	$	—
December 31, 2020
Commercial real estate - non owner-occupied	$	—	$	50	$	173	$	223	$	1,097,752	$	1,097,975	$	—
Commercial real estate - owner-occupied	99		—		47		146		271,349		271,495		—
Commercial	430		—		857		1,287		380,207		381,494		—
SBA PPP	—		—		—		—		135,095		135,095		—
Residential real estate	1,406		1,103		2,535		5,044		1,049,754		1,054,798		—
Home equity	335		173		1,416		1,924		256,649		258,573		—
Consumer	92		67		4		163		20,229		20,392		—
Total	$	2,362	$	1,393	$	5,032	$	8,787	$	3,211,035	$	3,219,822	$	—


	September 30, 2021						December 31, 2020
(In thousands)	Non-Accrual Loans With an Allowance		Non-Accrual Loans Without an Allowance		Total Non-Accrual Loans		Non-Accrual Loans With an Allowance		Non-Accrual Loans Without an Allowance		Total Non-Accrual Loans
Commercial real estate - non owner-occupied	$	59	$	14	$	73	$	351	$	15	$	366
Commercial real estate - owner-occupied	87		47		134		99		47		146
Commercial	811		49		860		1,549		58		1,607
Residential real estate	2,378		198		2,576		3,136		341		3,477
Home equity	1,401		—		1,401		1,961		35		1,996
Consumer	28		—		28		4		—		4
Total	$	4,764	$	308	$	5,072	$	7,100	$	496	$	7,596


	September 30, 2021						December 31, 2020
	Collateral Type				Total Collateral -Dependent Non-Accrual Loans		Collateral Type				Total Collateral -Dependent Non-Accrual Loans
(In thousands)	Real Estate		General Business Assets				Real Estate		General Business Assets


Commercial	$	—	$	—	$	—	$	—	$	689	$	689
Residential real estate	131		—		131		248		—		248
Home equity	88		—		88		—		—		—

Total	$	219	$	—	$	219	$	248	$	689	$	937

Interest income that would have been recognized if loans on non-accrual status had been current in accordance with their original terms is estimated to have been $59,000 and $85,000 for the three months ended September 30, 2021 and 2020, respectively. For the nine months ended September 30, 2021 and 2020, the interest income that is estimated to have been recognized if loans on non-accrual status had been current in accordance with their original terms was $202,000 and $251,000, respectively.

The Company's policy is to reverse previously recorded interest income when a loan is placed on non-accrual. As a result, the Company did not record any interest income on its non-accruals for the three or nine months ended September 30, 2021 and 2020. An immaterial amount of accrued interest on non-accrual loans was written-off during the three and nine months ended September 30, 2021 and 2020, by reversing interest income. At September 30, 2021 and December 31, 2020, total accrued interest receivable on loans, which has been excluded from reported amortized cost basis on loans, was $8.0 million and $10.2 million, respectively, and reported within other assets on the consolidated statements of condition. An allowance was not carried on the accrued interest receivable at either date.

The Company takes a conservative approach with credit risk management and remains focused on community lending and reinvesting. The Company works closely with borrowers experiencing credit problems to assist in loan repayment or term modifications. TDRs consist of loans where the Company, for economic or legal reasons related to the borrower’s financial difficulties, granted a concession to the borrower that it would not otherwise consider. TDRs typically involve term modifications or a reduction of either interest or principal. Once such an obligation has been restructured, it will remain a TDR until paid in full, or until the loan is again restructured at current market rates and no concessions are granted.

The specific reserve allowance was determined by discounting the total expected future cash flows from the borrower at the original loan interest rate, or if the loan is currently collateral-dependent, using net realizable value, which was obtained through independent appraisals and internal evaluations. The following is a summary of TDRs, by portfolio segment, and the associated specific reserve included within the ACL for the dates indicated:


	Number of Contracts		Recorded Investment				Specific Reserve
(In thousands, except number of contracts)	September 30, 2021	December 31, 2020	September 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020
Commercial real estate - owner-occupied	1	2	$	120	$	328	$	42	$	37
Commercial	2	2	80		100		—		—
Residential real estate	19	21	2,353		2,638		361		364
Consumer and home equity	2	—	230		—		22		—
Total	24	25	$	2,783	$	3,066	$	425	$	401


	Number of Contracts		Pre-Modification Outstanding Recorded Investment				Post-Modification Outstanding Recorded Investment				Specific Reserve

(In thousands, except number of contracts)	2021	2020	2021		2020		2021		2020		2021		2020











For the Nine Months Ended September 30,:
Home equity:
Interest rate concession and payment deferral	1	—	$	159	$	—	$	170	$	—	$	56	$	—
Maturity concession	1	—	144		—		143		—		6		—
Total	2	—	$	303	$	—	$	313	$	—	$	62	$	—

For periods prior to the adoption of CECL (i.e. periods before October 1, 2020), under the incurred loss methodology, impaired loans consisted of non-accrual loans and TDRs that were individually evaluated for impairment in accordance with the Company's policy. The following is a summary of impaired loan balances and the associated allowance by portfolio segment as of and for the periods indicated:


							For the Three Months Ended				For the Nine Months Ended
(In thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
September 30, 2020:
With an allowance recorded:
Commercial real estate	$	126	$	126	$	36	$	127	$	2	$	127	$	6
Commercial	—		—		—		—		—		—		—
SBA PPP	—		—		—		—		—		—		—
Residential real estate	2,394		2,394		371		2,349		33		2,328		79
Home equity	316		316		87		317		—		318		—
Consumer	—		—		—		—		—		—		—
Ending balance	2,836		2,836		494		2,793		35		2,773		85
Without an allowance recorded:
Commercial real estate	334		548		—		334		3		304		9
Commercial	171		233		—		175		1		242		4
SBA PPP	—		—		—		—		—		—		—
Residential real estate	734		858		—		791		2		909		4
Home equity	49		187		—		50		—		52		—
Consumer	—		—		—		—		—		—		—
Ending balance	1,288		1,826		—		1,350		6		1,507		17
Total impaired loans	$	4,124	$	4,662	$	494	$	4,143	$	41	$	4,280	$	102

FHLB advances are those borrowings from the FHLBB greater than 90 days. FHLB advances are collateralized by a blanket lien on qualified collateral consisting primarily of loans with first mortgages secured by one- to four-family properties, certain commercial real estate loans, certain pledged investment securities and other qualified assets. The carrying value of residential real estate and commercial loans pledged as collateral was $1.2 billion and $1.3 billion at September 30, 2021 and December 31, 2020, respectively.