LOANS AND ALLOWANCE FOR LOAN LOSSES | 90 June 30, 2021 Commercial real estate - non owner-occupied $ 99 $ — $ 63 $ 162 $ 1,127,038 $ 1,127,200 $ — Commercial real estate - owner-occupied — — 47 47 296,650 296,697 Commercial 183 — 836 1,019 366,074 367,093 — SBA PPP — — — — 126,064 126,064 — Residential real estate 489 155 1,570 2,214 1,118,703 1,120,917 — Home equity 236 — 919 1,155 227,535 228,690 — Consumer 35 9 28 72 19,183 19,255 — Total $ 1,042 $ 164 $ 3,463 $ 4,669 $ 3,281,247 $ 3,285,916 $ — 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 $ — The following table presents the amortized cost basis of loans on non-accrual status (including non-accruing TDRs) by portfolio segment as of the dates indicated: June 30, December 31, (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 $ 71 $ 15 $ 86 $ 351 $ 15 $ 366 Commercial real estate - owner-occupied 89 47 136 99 47 146 Commercial 1,459 52 1,511 1,549 58 1,607 Residential real estate 2,432 293 2,725 3,136 341 3,477 Home equity 1,396 — 1,396 1,961 35 1,996 Consumer 28 — 28 4 — 4 Total $ 5,475 $ 407 $ 5,882 $ 7,100 $ 496 $ 7,596 The following table presents the amortized cost basis of collateral-dependent non-accrual loans (including non-accruing TDRs) by portfolio segment and collateral type, as of the dates indicated: June 30, December 31, Collateral Type Total Collateral -Dependent Collateral Type Total Collateral -Dependent (In thousands) Real Estate General Business Assets Real Estate General Business Assets Commercial $ — $ 623 $ 623 $ — $ 689 $ 689 Residential real estate 218 — 218 248 — 248 Home equity 88 — 88 — — — Total $ 306 $ 623 $ 929 $ 248 $ 689 $ 937 Collateral-dependent loans are loans for which the repayment is expected to be provided substantially by the underlying collateral and there are no other available and reliable sources of repayment. Interest income that would have been r" id="sjs-B4">LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS Loans The composition of the Company’s loan portfolio, excluding residential loans held for sale, was as follows for the dates indicated: (In thousands) June 30, December 31, Commercial Loans: Commercial real estate - non owner-occupied $ 1,127,200 $ 1,097,975 Commercial real estate - owner-occupied 296,697 271,495 Commercial 367,093 381,494 SBA PPP 126,064 135,095 Total commercial loans 1,917,054 1,886,059 Retail Loans: Residential real estate 1,120,917 1,054,798 Home equity 228,690 258,573 Consumer 19,255 20,392 Total retail loans 1,368,862 1,333,763 Total loans $ 3,285,916 $ 3,219,822 The loan balances for each portfolio segment presented above are net of their respective unamortized fair value mark discount on acquired loans and net of unamortized loan origination costs for the dates indicated: (In thousands) June 30, December 31, Net unamortized fair value mark discount on acquired loans $ (857) $ (1,291) Net unamortized loan (fees) origination costs (1) (2,012) 856 Total $ (2,869) $ (435) (1) The change in net unamortized loan (fees) origination costs from December 31, 2020 to June 30, 2021, was primarily driven by SBA PPP loan origination fees capitalized during the six months ended June 30, 2021. As of June 30, 2021 and December 31, 2020, unamortized loan fees on originated SBA PPP loans were $5.4 million and $2.2 million, respectively. 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. For the six months ended June 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. For the year ended December 31, 2020, the Company originated 3,034 SBA PPP loans totaling $244.8 million. 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, as well as 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 June 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. Loan Sales For the three months ended June 30, 2021 and 2020, the Company sold $110.8 million and $197.8 million, respectively, of fixed rate residential mortgage loans on the secondary market, which resulted in gains on the sale of loans (net of costs) of $2.9 million and $4.6 million, respectively. For the six months ended June 30, 2021 and 2020, the Company sold $303.4 million and $267.0 million, respectively, of fixed rate residential mortgage loans on the secondary market which resulted in gains on the sale of loans (net of costs) of $9.1 million and $6.1 million. At June 30, 2021 and December 31, 2020, the Company had certain residential mortgage loans with a principal balance of $14.9 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 June 30, 2021 and December 31, 2020, recorded an unrealized gain of $253,000 and $1.1 million, respectively. For the three months ended June 30, 2021 and 2020, the Company recorded an unrealized gain on loans held for sale recorded within mortgage banking income, net, on the Company's consolidated statements of income of $267,000 and $1.3 million, respectively. For the six months ended June 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 ($804,000) and $742,000, respectively. The Company has forward delivery commitments with a secondary market investor on each of its loans held for sale at June 30, 2021 and December 31, 2020. Refer to Note 8 for further discussion of the Company's forward delivery commitments. ACL on Loans Under CECL, effective January 1, 2020 but applied to interim reporting periods on or after October 1, 2020, the ACL on loans is management's estimate of expected credit losses within its loan portfolio as of each reporting date. 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 June 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 for the six months ended June 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. 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 June 30, 2021 Beginning balance, March 31, 2021 $ 22,473 $ 2,548 $ 5,170 $ 87 $ 3,093 $ 2,176 $ 228 $ 35,775 Loans charged off — — (259) — (35) (107) (19) (420) Recoveries — 3 67 — 70 — 17 157 (Credit) provision for loan losses (2,896) (35) (636) (21) 77 (4) 63 (3,452) Ending balance, June 30, 2021 $ 19,577 $ 2,516 $ 4,342 $ 66 $ 3,205 $ 2,065 $ 289 $ 32,060 At or For The Six Months Ended June 30, 2021 Beginning balance, December 31, 2020 $ 21,778 $ 2,832 $ 6,703 $ 69 $ 3,474 $ 2,616 $ 393 $ 37,865 Loans charged off — — (406) — (88) (145) (68) (707) Recoveries — 5 110 — 70 — 23 208 (Credit) provision for loan losses (2,201) (321) (2,065) (3) (251) (406) (59) (5,306) Ending balance, June 30, 2021 $ 19,577 $ 2,516 $ 4,342 $ 66 $ 3,205 $ 2,065 $ 289 $ 32,060 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 (1) The Company adopted ASU 2016-13, "CECL," effective January 1, 2020 but applied to reporting periods on or after October 1, 2020. During the six months ended June 30, 2021, there were no significant changes in our CECL modeling methodology to determine the ACL on loans at June 30, 2021. The significant key assumptions used with the ACL on loans calculation at June 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 $5.8 million during the six months ended June 30, 2021, to $32.1 million as of June 30, 2021. The decrease in the ACL on loans was driven by an overall improvement in management's forecast of macroeconomic factors over a 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 Home Consumer Total At or For The Three and Six Months Ended June 30, 2020 Allowance for the three months ended: Beginning balance $ 13,374 $ 4,297 $ — $ 5,897 $ 2,480 $ 473 $ 26,521 Loans charged off (21) (420) — — (17) (26) (484) Recoveries 3 63 — 21 — 15 102 Provision 5,030 909 113 2,685 621 42 9,400 Ending balance $ 18,386 $ 4,849 $ 113 $ 8,603 $ 3,084 $ 504 $ 35,539 Allowance for the six months ended: Beginning balance $ 12,414 $ 3,985 $ — $ 5,842 $ 2,423 $ 507 $ 25,171 Loans charged off (71) (673) — (96) (51) (83) (974) Recoveries 7 116 — 23 4 20 170 Provision (1) 6,036 1,421 113 2,834 708 60 11,172 Ending balance $ 18,386 $ 4,849 $ 113 $ 8,603 $ 3,084 $ 504 $ 35,539 Allowance balance attributable to loans: Individually evaluated for impairment $ 35 $ — $ — $ 338 $ 89 $ — $ 462 Collectively evaluated for impairment 18,351 4,849 113 8,265 2,995 504 35,077 Total ending allowance $ 18,386 $ 4,849 $ 113 $ 8,603 $ 3,084 $ 504 $ 35,539 Loans: Individually evaluated for impairment $ 461 $ 179 $ — $ 3,153 $ 370 $ — $ 4,163 Collectively evaluated for impairment 1,310,524 428,007 218,803 1,051,180 290,445 22,919 3,321,878 Total ending loans balance $ 1,310,985 $ 428,186 $ 218,803 $ 1,054,333 $ 290,815 $ 22,919 $ 3,326,041 (1) Includes both commercial real estate - non owner-occupied and owner-occupied loan segments. 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 June 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 June 30, 2021. COVID-19 Loan Deferral Program 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, a nd 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 six months ended June 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 June 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 fully paid-off. Of those loans that were previously operating under a short-term deferral arrangement, $1.3 million were classified as non-accrual and $536,000 were 30-89 days past due as of June 30, 2021. Credit Quality Indicators 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. Loans that were granted temporary debt relief due to the COVID-19 pandemic were not automatically downgraded into lower credit risk ratings. 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. Based on the most recent analysis performed, the risk category of loans by portfolio segment by vintage, reported under the CECL methodology, was as follows as of the dates indicated: (In thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Total As of June 30, 2021 Commercial real estate - non owner-occupied Risk rating Pass (Grades 1-6) $ 97,672 $ 195,046 $ 208,784 $ 126,420 $ 104,904 $ 337,990 $ — $ — $ 1,070,816 Special mention (Grade 7) 97 7,337 1,490 — 4,342 3,924 — — 17,190 Substandard (Grade 8) 216 1,693 224 10,112 397 26,552 — — 39,194 Doubtful (Grade 9) — — — — — — — — — Total commercial real estate - non owner-occupied 97,985 204,076 210,498 136,532 109,643 368,466 — — 1,127,200 Commercial real estate - owner-occupied Risk rating Pass (Grades 1-6) 44,361 34,774 32,982 46,093 49,000 81,397 — — 288,607 Special mention (Grade 7) — — — 3,458 — 1,444 — — 4,902 Substandard (Grade 8) — — 71 — 1,829 1,288 — — 3,188 Doubtful (Grade 9) — — — — — — — — — Total commercial real estate - owner occupied 44,361 34,774 33,053 49,551 50,829 84,129 — — 296,697 Commercial Risk rating Pass (Grades 1-6) 49,954 51,324 57,039 34,303 17,277 37,592 83,722 31,487 362,698 Special mention (Grade 7) — — 26 21 192 469 — 23 731 Substandard (Grade 8) — 323 966 325 121 1,342 24 563 3,664 Doubtful (Grade 9) — — — — — — — — — Total commercial 49,954 51,647 58,031 34,649 17,590 39,403 83,746 32,073 367,093 SBA PPP Risk rating Pass (Grades 1-6) 96,794 29,270 — — — — — — 126,064 Special mention (Grade 7) — — — — — — — — — Substandard (Grade 8) — — — — — — — — — Doubtful (Grade 9) — — — — — — — — — Total SBA PPP 96,794 29,270 — — — — — — 126,064 Residential Real Estate Risk rating Pass (Grades 1-6) 261,642 316,822 136,803 83,561 59,003 257,481 882 — 1,116,194 Special mention (Grade 7) — — — — 236 — — 236 Substandard (Grade 8) — — — 144 — 4,343 — — 4,487 Doubtful (Grade 9) — — — — — — — — — Total residential real estate 261,642 316,822 136,803 83,705 59,003 262,060 882 — 1,120,917 Home equity Risk rating Performing 339 639 7,838 13,805 2,967 14,278 174,564 12,864 227,294 Non-performing — — — 42 — 196 818 340 1,396 Total home equity 339 639 7,838 13,847 2,967 14,474 175,382 13,204 228,690 Consumer Risk rating Performing 4,364 4,873 4,664 1,859 890 1,998 579 — 19,227 Non-performing — 9 16 — — 3 — — 28 Total consumer 4,364 4,882 4,680 1,859 890 2,001 579 — 19,255 Total Loans $ 555,439 $ 642,110 $ 450,903 $ 320,143 $ 240,922 $ 770,533 $ 260,589 $ 45,277 $ 3,285,916 (In thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Total As of December 31, 2020 Commercial real estate - non owner-occupied Risk rating Pass (Grades 1-6) $ 138,010 $ 224,148 $ 144,552 $ 119,409 $ 157,588 $ 264,253 $ — $ — $ 1,047,960 Special mention (Grade 7) 5,739 — — 4,256 3,497 847 — — 14,339 Substandard (Grade 8) 24 125 2,070 405 1,522 31,530 — — 35,676 Doubtful (Grade 9) — — — — — — — — — Total commercial real estate - non owner-occupied 143,773 224,273 146,622 124,070 162,607 296,630 — — 1,097,975 Commercial real estate - owner-occupied Risk rating Pass (Grades 1-6) 35,948 29,217 48,312 47,065 25,507 76,098 — — 262,147 Special mention (Grade 7) — — 4,584 — — 1,513 — — 6,097 Substandard (Grade 8) — — 891 462 — 1,898 — — 3,251 Doubtful (Grade 9) — — — — — — — — — Total commercial real estate - owner occupied 35,948 29,217 53,787 47,527 25,507 79,509 — — 271,495 Commercial Risk rating Pass (Grades 1-6) 53,966 72,863 40,688 25,478 15,788 51,869 72,425 37,026 370,103 Special mention (Grade 7) — 22 313 4,924 117 400 — 867 6,643 Substandard (Grade 8) 187 1,012 211 51 42 2,081 65 1,099 4,748 Doubtful (Grade 9) — — — — — — — — — Total commercial 54,153 73,897 41,212 30,453 15,947 54,350 72,490 38,992 381,494 SBA PPP Risk rating Pass (Grades 1-6) 135,095 — — — — — — — 135,095 Special mention (Grade 7) — — — — — — — — — Substandard (Grade 8) — — — — — — — — — Doubtful (Grade 9) — — — — — — — — — Total SBA PPP 135,095 — — — — — — — 135,095 Residential Real Estate Risk rating Pass (Grades 1-6) 339,834 183,877 119,426 79,159 57,269 266,324 3,028 — 1,048,917 Special mention (Grade 7) — — — — — 398 — — 398 Substandard (Grade 8) — — 176 487 — 4,820 — — 5,483 Doubtful (Grade 9) — — — — — — — — — Total residential real estate 339,834 183,877 119,602 79,646 57,269 271,542 3,028 — 1,054,798 Home equity Risk rating Performing 855 9,415 17,281 3,478 1,339 17,664 194,065 12,480 256,577 Non-performing — — — — — 207 1,241 548 1,996 Total home equity 855 9,415 17,281 3,478 1,339 17,871 195,306 13,028 258,573 Consumer Risk rating Performing 6,572 6,525 3,096 1,359 378 1,780 678 — 20,388 Non-performing — — — — 4 — — — 4 Total consumer 6,572 6,525 3,096 1,359 382 1,780 678 — 20,392 Total Loans $ 716,230 $ 527,204 $ 381,600 $ 286,533 $ 263,051 $ 721,682 $ 271,502 $ 52,020 $ 3,219,822 Past Due and Non-Accrual Loans 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 June 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, $1.3 million were classified as non-accrual and $536,000 were 30-89 days past due as of June 30, 2021, compared to $457,000 and $1.2 million, respectively, as of December 31, 2020. The following is a loan aging analysis by portfolio segment (including loans past due over 90 days and non-accrual loans) and loans past due over 90 days and accruing as of the following dates: (In thousands) 30-59 Days 60-89 Days 90 Days or Greater Total Current Total Loans Loans > 90 June 30, 2021 Commercial real estate - non owner-occupied $ 99 $ — $ 63 $ 162 $ 1,127,038 $ 1,127,200 $ — Commercial real estate - owner-occupied — — 47 47 296,650 296,697 Commercial 183 — 836 1,019 366,074 367,093 — SBA PPP — — — — 126,064 126,064 — Residential real estate 489 155 1,570 2,214 1,118,703 1,120,917 — Home equity 236 — 919 1,155 227,535 228,690 — Consumer 35 9 28 72 19,183 19,255 — Total $ 1,042 $ 164 $ 3,463 $ 4,669 $ 3,281,247 $ 3,285,916 $ — 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 $ — The following table presents the amortized cost basis of loans on non-accrual status (including non-accruing TDRs) by portfolio segment as of the dates indicated: June 30, December 31, (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 $ 71 $ 15 $ 86 $ 351 $ 15 $ 366 Commercial real estate - owner-occupied 89 47 136 99 47 146 Commercial 1,459 52 1,511 1,549 58 1,607 Residential real estate 2,432 293 2,725 3,136 341 3,477 Home equity 1,396 — 1,396 1,961 35 1,996 Consumer 28 — 28 4 — 4 Total $ 5,475 $ 407 $ 5,882 $ 7,100 $ 496 $ 7,596 The following table presents the amortized cost basis of collateral-dependent non-accrual loans (including non-accruing TDRs) by portfolio segment and collateral type, as of the dates indicated: June 30, December 31, Collateral Type Total Collateral -Dependent Collateral Type Total Collateral -Dependent (In thousands) Real Estate General Business Assets Real Estate General Business Assets Commercial $ — $ 623 $ 623 $ — $ 689 $ 689 Residential real estate 218 — 218 248 — 248 Home equity 88 — 88 — — — Total $ 306 $ 623 $ 929 $ 248 $ 689 $ 937 Collateral-dependent loans are loans for which the repayment is expected to be provided substantially by the underlying collateral and there are no other available and reliable sources of repayment. Interest income that would have been r |