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Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2020
Receivables [Abstract]  
Loans Held-For-Investment
The following table presents, by recorded investment, the composition of the Company’s loans held-for-investment (net of deferred fees and costs) as of the dates indicated:
December 31,
($ in thousands)20202019
Real estate loans:
Commercial property$880,736 $803,014 
Residential property198,431 235,046 
SBA property126,570 129,837 
Construction15,199 19,164 
Total real estate loans1,220,936 1,187,061 
Commercial and industrial loans:
Commercial term87,250 103,380 
Commercial lines of credit96,087 111,768 
SBA commercial term21,878 25,332 
SBA PPP135,654 — 
Total commercial and industrial loans340,869 240,480 
Other consumer loans
21,773 23,290 
Loans held-for-investment
1,583,578 1,450,831 
Allowance for loan losses
(26,510)(14,380)
Net loans held-for-investment
$1,557,068 $1,436,451 
The following table presents a summary of SBA PPP loans as of December 31, 2020:
December 31, 2020
($ in thousands)Number of LoansAmount
Loan amount:
$50,000 or less1,017 $20,518 
Over $50,000 and less than $350,000496 60,692 
Over $350,000 and less than $2,000,00069 46,054 
$2,000,000 or more3 8,390 
Total1,585 $135,654 
Schedule of Loan Modification Related to COVID-19
The following table presents a summary of loans under modified terms related to the COVID-19 pandemic by portfolio segment as of December 31, 2020:
December 31, 2020
Modification Type
($ in thousands)Payment DefermentInterest Only PaymentTotal
Real estate loans:
Commercial property$9,688 $14,444 $24,132 
Residential property425 — 425 
SBA property— 4,192 4,192 
Commercial and industrial loans:
Commercial term2,462 3,065 5,527 
SBA commercial term— 1,841 1,841 
Total$12,575 $23,542 $36,117 
Allowance for Loan Losses he following table presents the activities in allowance for loan losses by portfolio segment, which is consistent with the Company’s methodology for determining allowance for loan losses, for the periods indicated:
($ in thousands)Real EstateCommercial and IndustrialConsumerTotal
Balance at January 1, 2018$8,507 $3,548 $169 $12,224 
Charge-offs
(381)(272)(356)(1,009)
Recoveries on loans previously charged off
213 356 152 721 
Provision (reversal) for loan losses
765 245 221 1,231 
Balance at December 31, 20189,104 3,877 186 13,167 
Charge-offs
(31)(3,350)(198)(3,579)
Recoveries on loans previously charged off
6 378 171 555 
Provision for loan losses
775 3,449 13 4,237 
Balance at December 31, 20199,854 4,354 172 14,380 
Charge-offs
(175)(1,104)(250)(1,529)
Recoveries on loans previously charged off
58 236 146 440 
Provision for loan losses
9,157 3,736 326 13,219 
Balance at December 31, 2020$18,894 $7,222 $394 $26,510 
The following tables present the information on allowance for loan losses and recorded investments by portfolio segment and impairment methodology as of the dates indicated:
($ in thousands)Real EstateCommercial and IndustrialConsumerTotal
December 31, 2020
Allowance for loan losses:
Individually evaluated for impairment$3 $2 $— $5 
Collectively evaluated for impairment18,891 7,220 394 26,505 
Total$18,894 $7,222 $394 $26,510 
Loans receivable:
Individually evaluated for impairment$2,200 $1,531 $— $3,731 
Collectively evaluated for impairment1,218,736 339,338 21,773 1,579,847 
Total$1,220,936 $340,869 $21,773 $1,583,578 
December 31, 2019
Allowance for loan losses:
Individually evaluated for impairment$4 $15 $— $19 
Collectively evaluated for impairment9,850 4,339 172 14,361 
Total$9,854 $4,354 $172 $14,380 
Loans receivable:
Individually evaluated for impairment$2,158 $2,401 $— $4,559 
Collectively evaluated for impairment1,184,903 238,079 23,290 1,446,272 
Total$1,187,061 $240,480 $23,290 $1,450,831 
Risk Categories for Loans by Portfolio Segment
The following table presents the risk categories for the recorded investment in loans by portfolio segment as of dates indicated:
($ in thousands)PassSpecial MentionSubstandardDoubtfulTotal
December 31, 2020
Real estate loans:
Commercial property$866,508 $10,268 $3,960 $— $880,736 
Residential property198,242 — 189 — 198,431 
SBA property123,147 251 3,172 — 126,570 
Construction15,199 — — — 15,199 
Commercial and industrial loans:
Commercial term81,724 4,362 1,164 — 87,250 
Commercial lines of credit93,884 1,299 904 — 96,087 
SBA commercial term20,922 281 675 — 21,878 
SBA PPP135,654 — — — 135,654 
Other consumer loans
21,707 — 66 — 21,773 
Total$1,556,987 $16,461 $10,130 $— $1,583,578 
December 31, 2019
Real estate loans:
Commercial property$802,373 $— $641 $— $803,014 
Residential property235,046 — — — 235,046 
SBA property124,135 72 5,630 — 129,837 
Construction17,453 1,711 — — 19,164 
Commercial and industrial loans:
Commercial term103,380 — — — 103,380 
Commercial lines of credit109,880 — 1,888 — 111,768 
SBA commercial term24,677 — 655 — 25,332 
Other consumer loans23,242 — 48 — 23,290 
Total$1,440,186 $1,783 $8,862 $— $1,450,831 
The following table presents the risk categories for the recorded investment in loans under modified terms related to the COVID-19 pandemic by portfolio segment as of dates indicated:
($ in thousands)PassSpecial MentionSubstandardDoubtfulTotal
December 31, 2020
Real estate loans:
Commercial property$13,158 $10,268 $706 $— $24,132 
Residential property425 — — — 425 
SBA property3,941 251 — — 4,192 
Commercial and industrial loans:
Commercial term— 4,362 1,165 — 5,527 
SBA commercial term1,769 — 72 — 1,841 
Total$19,293 $14,881 $1,943 $— $36,117 
Aging of Past Due Accruing Loans and Nonaccrual Loans by Segment
The following table presents the aging of past due recorded investment in accruing loans and nonaccrual loans by portfolio segment as of dates indicated:
Still Accruing
($ in thousands)30 to 59 Days Past Due60 to 89 Days Past Due90 or More Days Past Due NonaccrualTotal Past Due and Nonaccrual
December 31, 2020
Real estate loans:
Commercial property$— $— $— $524 $524 
Residential property182 — — 189 371 
SBA property— — — 885 885 
Commercial and industrial loans:
Commercial lines of credit— — — 904 904 
SBA commercial term— — — 595 595 
Other consumer loans120 36 — 66 222 
Total$302 $36 $— $3,163 $3,501 
December 31, 2019
Real estate loans:
Residential property$— $697 $— $— $697 
SBA property794 — — 442 1,236 
Commercial and industrial loans:
Commercial lines of credit— — — 1,888 1,888 
SBA commercial term— 189 287 159 635 
Other consumer loans99 39 — 48 186 
Total$893 $925 $287 $2,537 $4,642 
Impairment by Portfolio Segment
The following table presents loans individually evaluated for impairment by portfolio segment as of the dates indicated. The recorded investment presents customer balances net of any partial charge-offs recognized on the loans and net of any deferred fees and costs.
With No Allowance RecordedWith an Allowance Recorded
($ in thousands)Recorded InvestmentUnpaid Principal BalanceRecorded InvestmentUnpaid Principal BalanceRelated Allowance
December 31, 2020
Real estate loans:
Commercial property$856 $855 $— $— $— 
Residential property189 189 — — — 
SBA property1,108 1,198 47 45 3 
Commercial and industrial loans:
Commercial term18 18 — — — 
Commercial lines of credit904 904 — — — 
SBA commercial term593 633 16 18 2 
Total$3,668 $3,797 $63 $63 $5 
December 31, 2019
Real estate loans:
Commercial property$339 $338 $— $— $— 
SBA property1,699 1,828 120 154 4 
Commercial and industrial loans:
Commercial term28 28 — — — 
Commercial lines of credit1,888 1,888 — — — 
SBA commercial term457 495 28 28 15 
Total$4,411 $4,577 $148 $182 $19 
The following table presents information on the recorded investment in impaired loans by portfolio segment for the periods indicated:
Year Ended December 31,
202020192018
($ in thousands)Average Recorded InvestmentInterest IncomeAverage Recorded InvestmentInterest IncomeAverage Recorded InvestmentInterest Income
Real estate loans:
Commercial property$467 $23 $170 $12 $199 $— 
Residential property47 — 38 — 281 — 
SBA property1,459 17 1,685 41 1,245 22 
Commercial and industrial loans:
Commercial term24 1 47 3 112 8 
Commercial lines of credit1,869 — 921 — 5 — 
SBA commercial term499 1 224 9 382 8 
Total$4,365 $42 $3,085 $65 $2,224 $38 
The following presents a summary of interest foregone on impaired loans for the periods indicated:
Year Ended December 31,
($ in thousands)202020192018
Interest income that would have been recognized had impaired loans performed in accordance with their original terms
$256 $213 $191 
Less: interest income recognized on impaired loans on a cash basis
(42)(65)(38)
Interest income foregone on impaired loans$214 $148 $153 
Modified TDRs by Portfolio Segment
The following table presents the composition of loans that were modified as TDRs by portfolio segment as of the dates indicated:
December 31,
20202019
($ in thousands)AccruingNonaccrualTotalAccruingNonaccrualTotal
Real estate loans:
Commercial property$333 $— $333 $339 $— $339 
SBA property270 5 275 294 121 415 
Commercial and industrial loans:
Commercial term18 — 18 28 — 28 
SBA commercial term13 — 13 39 — 39 
Total$634 $5 $639 $700 $121 $821 
The following table presents new loans that were modified as TDRs by portfolio segment for the periods indicated:
Year Ended December 31,
202020192018
($ in thousands)Number of LoansPre-Modification Recorded InvestmentPost-Modification Recorded InvestmentNumber of LoansPre-Modification Recorded InvestmentPost-Modification Recorded InvestmentNumber of LoansPre-Modification Recorded InvestmentPost-Modification Recorded Investment
Real estate loans:
Commercial property— $— $— 1 $341 $341 — $— $— 
SBA property— — — 2 254 254 — — — 
Commercial and industrial loans:
SBA commercial term2 37 37 2 15 15 — — — 
Total2 $37 $37 5 $610 $610 — $— $— 
The following table summarized the TDRs by modification type for the periods indicated:
Principal (1)
Principal and Interest (2)
Total
($ in thousands)
Number of Loans
Pre-Modification Recorded Investment
Number of Loans
Pre-Modification Recorded Investment
Number of Loans
Pre-Modification Recorded Investment
Year ended December 31, 2020:
Commercial and industrial loans:
SBA commercial term2 $37 — $— 2 $37 
Total2 $37 — $— 2 $37 
Year ended December 31, 2019:
Real estate loans:
Commercial property— $— 1 $341 1 $341 
SBA property2 254 — — 2 254 
Commercial and industrial loans:
SBA commercial term2 15 — — 2 15 
Total4 $269 1 $341 5 $610 
(1) Includes forbearance payments, term extensions and principal deferments that modify the terms of the loan from principal and interest payment to interest only payment.
(2) Includes principal and interest deferments or reductions.
Loans Held-for-Sale
The following table presents a summary of loans held-for-investment transferred to loans held-for-sale for the periods indicated:
Year Ended December 31,
($ in thousands)202020192018
Real estate loans:
Commercial property$— $— $2,112 
Residential property1,125 824 5,950 
Commercial and industrial loans:
SBA commercial term230 — — 
Total$1,355 $824 $8,062 
The following table presents a summary of loans held-for-sale transferred to loans held-for-investment for the periods indicated:
Year Ended December 31,
($ in thousands)202020192018
Real estate loans:
Residential property$697 $— $— 
Total$697 $— $— 
The following table presents a summary of purchases of loans held-for-investment for the periods indicated:
Year Ended December 31,
($ in thousands)202020192018
Real estate loans:
Residential property$— $1,539 $— 
Total$— $1,539 $— 
The following table presents a composition of loans held-for-sale as of the dates indicated:
December 31,
($ in thousands)20202019
Real estate loans:
Residential property$300 $760 
SBA property1,411 150 
Commercial and industrial loans:
SBA commercial term268 1,065 
Total$1,979 $1,975