In support of the Coronavirus, Aid, Relief, and Economic Security Act (the “CARES Act”), the Bank had processed nearly 450 applications for PPP loans of approximately $210,000,000 to provide much-needed cash to small business and self-employed taxpayers during the COVID-19 crisis. The loans were primarily made to existing bank customers and are 100% guaranteed by the Small Business Administration and no allowance for credit loss was recorded for these loans.

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The following table presents the aging of loans by loan categories at March 31, 2021 and December 31, 2020:

	Performing						Nonperforming
(In thousands)	Current		30-59 Days		60-89 Days		90 Days and Over		Non- accrual		Total Loans
March 31, 2021
Commercial and industrial	$	302,747	$	—	$	—	$	—	$	—	$	302,747
Real estate
Commercial:
Mortgage		96,630		—		—		—		—		96,630
Construction		23,766		—		—		—		—		23,766
Faith-based:
Mortgage		331,153		—		—		—		—		331,153
Construction		20,800		—		—		—		—		20,800
PPP		113,474		—		—		—		—		113,474
Other		5		—		—		—		—		5
Total	$	888,575	$	—	$	—	$	—	$	—	$	888,575
December 31, 2020
Commercial and industrial	$	298,984	$	—	$	—	$	—	$	—	$	298,984
Real estate
Commercial:
Mortgage		100,419		—		—		—		—		100,419
Construction		25,090		—		—		—		—		25,090
Faith-based:
Mortgage		333,661		—		—		—		—		333,661
Construction		23,818		—		—		—		—		23,818
PPP		109,704		—		—		—		—		109,704
Total	$	891,676	$	—	$	—	$	—	$	—	$	891,676

The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of March 31, 2021 and December 31, 2020:

(In thousands)	Loans Subject to Normal Monitoring¹		Performing Loans Subject to Special Monitoring²		Nonperforming Loans Subject to Special Monitoring²		Total Loans
March 31, 2021
Commercial and industrial	$	289,698	$	13,049	$	—	$	302,747
Real estate
Commercial:
Mortgage		95,305		1,325		—		96,630
Construction		23,766		—		—		23,766
Faith-based:
Mortgage		328,105		3,048		—		331,153
Construction		20,800		—		—		20,800
PPP		113,474		—		—		113,474
Other		5		—		—		5
Total	$	871,153	$	17,422	$	—	$	888,575
December 31, 2020
Commercial and industrial	$	284,882	$	14,102	$	—	$	298,984
Real estate
Commercial:
Mortgage		99,044		1,375		—		100,419
Construction		25,090		—		—		25,090
Faith-based:
Mortgage		330,554		3,107		—		333,661
Construction		23,818		—		—		23,818
PPP		109,704		—		—		109,704
Total	$	873,092	$	18,584	$	—	$	891,676

¹	Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligations.
²	Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention.

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Table of Contents

The Company had two loans that were considered impaired in the amount of $2,912,000 at March 31, 2021. These loans were individually evaluated for impairment, resulting in a specific allowance for credit loss of $750,000. The Company had one loan that was considered impaired in the amount of $2,500,000 at December 31, 2020. This loan was individually evaluated for impairment, resulting in a specific allowance for credit loss of $500,000.

There were no foreclosed loans recorded as other real estate owned (included in other assets) as of March 31, 2021 or December 31, 2020.

There were no loans considered troubled debt restructurings as of March 31, 2021. There were two loans that were considered troubled debt restructurings at December 31, 2020 and these loans were removed from troubled debt restructuring status during the first quarter 2021.

The recorded investment by category for loans considered as troubled debt restructuring during the year ended December 31, 2020 is as follows:

(In thousands)	Number of Loans	Pre-Modification Outstanding Balance		Post-Modification Outstanding Balance
Commercial and industrial	1	$	8,773	$	8,773
Faith-based real estate	1		1,029		1,029
Total	2	$	9,802	$	9,802

During the year ended December 31, 2020, two loans were restructured to change the amortization schedule to reduce payments from the borrowers while the contractual interest rate remained unchanged. These loans did not have a specific allowance for credit loss allocated to them at December 31, 2020. There were no loans restructured that subsequently defaulted during the year ended December 31, 2020.

A summary of the activity in allowance for credit losses (“ACL”) by category for the period ended March 31, 2021 and December 31, 2020 is as follows:

(In thousands)	C&I		CRE		Faith-based CRE		Construction		Total
Allowance for credit losses on loans:
Balance at December 31, 2020	$	4,635	$	1,175	$	5,717	$	417	$	11,944
Charge Offs		—		—		—		—		—
(Release of) provision for credit losses		54		(65)		(200)		(29)		(240)
Recoveries		2		—		15		—		17
Balance at March 31, 2021	$	4,691	$	1,110	$	5,532	$	388	$	11,721

The decrease in the provision for credit losses on loans during the quarter ended March 31, 2021 is due to the Company’s forecast of macroeconomic factors, which improved during the first quarter 2021.

(In thousands)	C&I		CRE		Faith-based CRE		Construction		Total
Allowance for credit losses on loans:
Balance at December 31, 2019	$	4,874	$	1,528	$	3,842	$	312	$	10,556
Cumulative effect of accounting change (ASU 2016-13)		(526)		(401)		1,636		14		723
Balance at January 1, 2020		4,348		1,127		5,478		326		11,279
Provision for credit losses		268		48		238		91		645
Recoveries		19		—		1		—		20
Balance at December 31, 2020	$	4,635	$	1,175	$	5,717	$	417	$	11,944

The increase in the provision for credit losses on loans during the year ended December 31, 2020 is due to the Company’s forecast of macroeconomic factors, which decreased during 2020, primarily due to the COVID-19 pandemic.

A summary of the activity in the allowance for loan losses from December 31, 2019 to March 31, 2020 is as follows:

(In thousands)	December 31, 2019		Charge- Offs		Recoveries		Provision		March 31, 2020
Commercial and industrial	$	4,874	$	—	$	7	$	213	$	5,094
Real estate
Commercial:
Mortgage		1,528		—		—		24		1,552
Construction		191		—		—		(41)		150
Faith-based:
Mortgage		3,842		—		1		106		3,949
Construction		121		—		—		23		144
Total	$	10,556	$	—	$	8	$	325	$	10,889