Loans (Tables)

3 Months Ended

Mar. 31, 2019

The composition of the loan portfolio was as follows at March 31, 2019 and December 31, 2018:

	March 31, 2019			December 31, 2018
	(Dollars in thousands)
Real estate:
Commercial real estate	$	545,481		$	503,834
SBA loans—real estate		120,660			117,834
Total real estate		666,141			621,668
SBA loans—non-real estate		9,818			9,541
Commercial and industrial		106,796			113,975
Home mortgage		127,851			127,298
Consumer		2,458			2,577
Gross loans receivable		913,064			875,059
Allowance for loan losses		(9,619	)		(9,636	)
Loans receivable, net	$	903,445		$	865,423

Schedule of Activity in Allowance for Loan Losses

The activity in the allowance for loan losses for the three months ended March 31, 2019 and 2018 was as follows:

						SBA
	Commercial		SBA Loans			Loans Non-			Commercial			Home
	Real Estate		Real Estate			Real Estate			and Industrial			Mortgage			Consumer			Total
	(Dollars in thousands)
Three months ended March 31, 2019:
Beginning balance	$	4,805	$	894		$	505		$	1,746		$	1,653		$	33		$	9,636
Provision for loan losses		391		53			(376	)		(73	)		7			(2	)		—
Charge-offs		—		(17	)		—			—			—			—			(17	)
Recoveries		—		—			—			—			—			—			—
Ending balance	$	5,196	$	930		$	129		$	1,673		$	1,660		$	31		$	9,619
Three months ended March 31, 2018:
Beginning balance	$	4,801	$	1,082		$	538		$	1,265		$	1,408		$	45		$	9,139
Provision for loan losses		410		(76	)		(39	)		315			(32	)		(3	)		575
Charge-offs		—		—			—			—			—			—			—
Recoveries		—		—			2			—			—			—			2
Ending balance	$	5,211	$	1,006		$	501		$	1,580		$	1,376		$	42		$	9,716

Schedule of Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment as of March 31, 2019 and December 31, 2018:

	Loans Individually Evaluated for Impairment		Loans Collectively Evaluated for Impairment		Total
As of March 31, 2019:	(Dollars in thousands)
Allowance for loan losses:
Commercial real estate	$	—	$	5,196	$	5,196
SBA loans—real estate		—		930		930
SBA loans—non-real estate		—		129		129
Commercial and industrial		834		839		1,673
Home mortgage		—		1,660		1,660
Consumer		—		31		31
Total	$	834	$	8,785	$	9,619
Loans:
Commercial real estate	$	—	$	547,048	$	547,048
SBA loans—real estate		510		120,798		121,308
SBA loans—non-real estate		49		9,826		9,875
Commercial and industrial		1,514		105,591		107,105
Home mortgage		—		128,381		128,381
Consumer		—		2,467		2,467
Total	$	2,073	$	914,111	$	916,184
As of December 31, 2018:
Allowance for loan losses:
Commercial real estate	$	—	$	4,805	$	4,805
SBA loans—real estate		—		894		894
SBA loans—non-real estate		362		143		505
Commercial and industrial		836		910		1,746
Home mortgage		—		1,653		1,653
Consumer		—		33		33
Total	$	1,198	$	8,438	$	9,636
Loans:
Commercial real estate	$	—	$	505,229	$	505,229
SBA loans—real estate		834		117,159		117,993
SBA loans—non-real estate		57		9,875		9,932
Commercial and industrial		1,516		112,781		114,297
Home mortgage		—		127,806		127,806
Consumer		—		2,586		2,586
Total	$	2,407	$	875,436	$	877,843

Schedule of Information Related to Impaired Loans by Class of Loans

The following table presents information related to impaired loans by class of loans as of and for the three months ended March 31, 2019 and 2018. The difference between the unpaid principal balance (net of partial charge-offs) and the recorded investment in the loans is not considered to be material. The difference between interest income recognized and cash basis interest recognized was immaterial.

					Average		Interest
	Recorded		Allowance		Recorded		Income
	Investment		Allocated		Investment		Recognized
As of and for the three months ended March 31, 2019:	(Dollars in thousands)
With no related allowance recorded:
SBA loans—real estate	$	510	$	—	$	516	$	—
SBA loans—non-real estate		49		—		53		—
Commercial and industrial		680		—		680		—
With an allowance recorded:
Commercial and industrial		834		834		835		13
Total	$	2,073	$	834	$	2,084	$	13
As of and for the three months ended March 31, 2018:
With no related allowance recorded:
Commercial and industrial	$	749	$	—	$	749	$	10
Home mortgage		241		—		241		—
With an allowance recorded:
SBA loans—non-real estate		362		362		362		—
Commercial and industrial		1,010		553		1,023		14
Total	$	2,362	$	915	$	2,375	$	24

Schedule of Recorded Investment in Nonaccrual Loans and Loans Past Due Greater Than 90 Days Still Accruing Interest by Class of Loans

The following table presents the recorded investment in nonaccrual loans and loans past due greater than 90 days still accruing interest by class of loans as of March 31, 2019 and December 31, 2018:

	Nonaccrual		Loans >90 Days Past Due & Still Accruing		Total
As of March 31, 2019:	(Dollars in thousands)
SBA loans—real estate	$	510	$	—	$	510
SBA loans—non-real estate	$	49		—		49
Commercial and industrial		680		—		680
Total	$	1,239	$	—	$	1,239
As of December 31, 2018:
SBA loans—real estate	$	834	$	—	$	834
SBA loans—non-real estate		57		—		57
Commercial and industrial		680		—		680
Total	$	1,571	$	—	$	1,571

Schedule of Aging of Recorded Investment in Past Due Loans

The following table represents the aging of the recorded investment in past due loans as of March 31, 2019 and December 31, 2018:

	30-59 Days Past Due		60-89 Days Past Due		> 90 Days Past Due		Total Past Due		Loans Not Past Due		Total
As of March 31, 2019:	(Dollars in thousands)
Commercial real estate	$	—	$	—	$	—	$	—	$	547,048	$	547,048
SBA—real estate		1,013		—		—		1,013		120,295		121,308
SBA—non-real estate		—		—		—		—		9,875		9,875
Commercial and industrial		—		—		—		—		107,105		107,105
Home mortgage		1,060		—		—		1,060		127,321		128,381
Consumer		—		—		—		—		2,467		2,467
	$	2,073	$	—	$	—	$	2,073	$	914,111	$	916,184
As of December 31, 2018:
Commercial real estate	$	—	$	—	$	—	$	—	$	505,229	$	505,229
SBA—real estate		—		—		311		311		117,682		117,993
SBA—non-real estate		—		—		—		—		9,932		9,932
Commercial and industrial		—		—		680		680		113,617		114,297
Home mortgage		449		—		—		449		127,357		127,806
Consumer		—		—		—		—		2,586		2,586
	$	449	$	—	$	991	$	1,440	$	876,403	$	877,843

Schedule of Risk Category of Loans by Class of Loans

As of March 31, 2019 and December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

	Pass		Special Mention		Substandard		Doubtful		Total
As of March 31, 2019:	(Dollars in thousands)
Commercial real estate	$	547,048	$	—	$	—	$	—	$	547,048
SBA loans—real estate		119,027		—		2,281		—		121,308
SBA loans—non-real estate		9,810		16		49		—		9,875
Commercial and industrial		105,199		—		1,906		—		107,105
Home mortgage		128,381		—		—		—		128,381
Consumer		2,467		—		—		—		2,467
	$	911,932	$	16	$	4,236	$	—	$	916,184
As of December 31, 2018:
Commercial real estate	$	505,229	$	—	$	—	$	—	$	505,229
SBA loans—real estate		115,993		—		2,000		—		117,993
SBA loans—non-real estate		9,859		16		57		—		9,932
Commercial and industrial		112,781		—		1,516		—		114,297
Home mortgage		127,806		—		—		—		127,806
Consumer		2,586		—		—		—		2,586
	$	874,254	$	16	$	3,573	$	—	$	877,843