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Loans and Allowance for Credit Losses on Loans (Tables)
 6 Months Ended
Jun. 30, 2023
Receivables [Abstract]  
Schedule of Composition of Loan Portfolio
The following table presents the composition of the loan portfolio as of June 30, 2023 and December 31, 2022:

($ in thousands)June 30, 2023December 31, 2022
Commercial real estate$847,863 $842,208 
SBA—real estate224,476 221,340 
SBA—non-real estate14,309 13,377 
C&I112,160 116,951 
Home mortgage516,226 482,949 
Consumer1,163 1,467 
Gross loans receivable1,716,197 1,678,292 
Allowance for credit losses(20,802)(19,241)
Loans receivable, net (1)
$1,695,395 $1,659,051 
(1)Includes net deferred loan costs/(fees) and unamortized premiums/(unaccreted discounts) of $(381) thousand and $160 thousand as of June 30, 2023 and December 31, 2022, respectively.
The following table represents the amortized cost basis of collateral-dependent loans by class of loans as of June 30, 2023, for which repayment is expected to be obtained through the sale of the underlying collateral.

($ in thousands)Hotel / MotelGas StationSingle-Family ResidentialTotal
As of June 30, 2023
SBA—real estate(1)
$424 $3,938 $— $4,362 
Home mortgage— — 2,305 2,305 
Total$424 $3,938 $2,305 $6,667 
(1)    Includes guaranteed portion of SBA loans of $3.6 million as of June 30, 2023.
Schedule of Activity in Allowance for Loan Losses by Portfolio Segment
The following table summarizes the activity in the allowance for credit losses on loans by portfolio segment for the three and six months ended June 30, 2023 and 2022:

($ in thousands)
Commercial
Real Estate
SBA—
Real Estate
SBA —Non-
Real Estate
C&I
Home
Mortgage
ConsumerTotal
Three Months Ended June 30, 2023
Beginning balance$6,784 $1,218 $67 $1,270 $11,472 $3 $20,814 
Provision for (reversal of) credit losses— — — — — — — 
Charge-offs— — (20)— — — (20)
Recoveries— — 8 — — — 8 
Ending balance$6,784 $1,218 $55 $1,270 $11,472 $3 $20,802 
Three Months Ended June 30, 2022
Beginning balance$6,480 $1,750 $169 $3,492 $4,768 $13 $16,672 
Provision for (reversal of) credit losses1,263 43 (61)(1,390)1,145 (4)996 
Charge-offs— — (18)— — — (18)
Recoveries— 7 45 — — — 52 
Ending balance$7,743 $1,800 $135 $2,102 $5,913 $9 $17,702 

($ in thousands)
Commercial
Real Estate
SBA—
Real Estate
SBA —Non-
Real Estate
C&I
Home
Mortgage
ConsumerTotal
Six Months Ended June 30, 2023
Beginning balance$6,951 $1,607 $207 $1,643 $8,826 $7 $19,241 
Impact of CECL adoption875 (238)(142)(320)1,753 (4)1,924 
(Reversal of) provision for credit losses(951)(140)(7)(53)893 — (258)
Charge-offs(91)(11)(34)— — — (136)
Recoveries— — 31 — — — 31 
Ending balance$6,784 $1,218 $55 $1,270 $11,472 $3 $20,802 
Six Months Ended June 30, 2022
Beginning balance$8,150 $2,022 $199 $2,848 $2,891 $13 $16,123 
(Reversal of) provision for credit losses(1)
(407)(215)(108)(746)3,022 (5)1,541 
Charge-offs— (14)(18)— — — (32)
Recoveries— 7 62 — — 1 70 
Ending balance$7,743 $1,800 $135 $2,102 $5,913 $9 $17,702 
(1)Excludes reversal of uncollectible accrued interest receivable of $205 thousand for the six months ended June 30, 2022.
The following table presents the allowance for credit losses on loans and recorded investment (not including accrued interest receivable) by portfolio segment and impairment methodology as of June 30, 2023 and December 31, 2022:

($ in thousands)
Individually
Evaluated
for Impairment
Collectively
Evaluated
for Impairment
Total
As of June 30, 2023
Allowance for credit losses:
Commercial real estate$— $6,784 $6,784 
SBA—real estate57 1,161 1,218 
SBA—non-real estate— 55 55 
C&I— 1,270 1,270 
Home mortgage— 11,472 11,472 
Consumer— 3 3 
Total$57 $20,745 $20,802 
Loans(1):
Commercial real estate$— $847,863 $847,863 
SBA—real estate(2)
4,362 220,114 224,476 
SBA—non-real estate— 14,309 14,309 
C&I— 112,160 112,160 
Home mortgage2,305 513,921 516,226 
Consumer— 1,163 1,163 
Total$6,667 $1,709,530 $1,716,197 
As of December 31, 2022
Allowance for credit losses:
Commercial real estate$— $6,951 $6,951 
SBA—real estate— 1,607 1,607 
SBA—non-real estate— 207 207 
C&I279 1,364 1,643 
Home mortgage— 8,826 8,826 
Consumer— 7 7 
Total$279 $18,962 $19,241 
Loans(1):
Commercial real estate$— $842,208 $842,208 
SBA—real estate423 220,917 221,340 
SBA—non-real estate— 13,377 13,377 
C&I279 116,672 116,951 
Home mortgage— 482,949 482,949 
Consumer— 1,467 1,467 
Total$702 $1,677,590 $1,678,292 
(1)Excludes accrued interest receivables of $6.8 million and $6.4 million as of June 30, 2023 and December 31, 2022, respectively.
(2)Individually evaluated loans of $4.4 million include guaranteed portion of SBA loans of $3.6 million as of June 30, 2023.
The following table presents the recorded investment in impaired loans and the specific allowance for loan losses as of December 31, 2022.

December 31, 2022(1)
($ in thousands)Unpaid Principal BalanceRecorded
Investment
With No
Allowance		Recorded
Investment
With
Allowance		Related
Allowance
SBA—real estate$423 $423 $— $— 
C&I279 — 279 279 
Total$702 $423 $279 $279 
(1)    The difference between the unpaid principal balance (net of partial charge-offs) and the recorded investment in the loans was not considered to be material
Schedule of Recorded Investment in Nonaccrual Loans and Loans Past Due 90 or More Days and Still Accruing Interest by Portfolio Segment
The following table presents the recorded investment in nonaccrual loans and loans past due 90 or more days and still accruing interest, by portfolio as of June 30, 2023 and December 31, 2022:

($ in thousands)Nonaccrual Loans with a Related Allowance for Credit LossesNonaccrual Loans without a Related Allowance for Credit LossesTotal Nonaccrual Loans
90 or More
Days
Past Due &
Still Accruing
Total(1)
As of June 30, 2023
SBA—real estate$5,056 $423 $5,479 $— $5,479 
SBA—non-real estate182 351 533 246 779 
C&I— — — — — 
Home mortgage249 2,305 2,554 — 2,554 
Total$5,487 $3,079 $8,566 $246 $8,812 
As of December 31, 2022
SBA—real estate$423 $— $423 
SBA—non-real estate657 442 1,099 
C&I279 — 279 
Home mortgage1,280 — 1,280 
Total$2,639 $442 $3,081 
(1) Includes guaranteed portion of SBA loans of $5.4 million and $1.0 million as of June 30, 2023 and December 31, 2022, respectively.
Schedule of Aging Analysis of Recorded Investment in Past Due Loans
The following table represents the aging analysis of the recorded investment in past due loans as of June 30, 2023 and December 31, 2022:

($ in thousands)
30-59
Days
Past Due
60-89
Days
Past Due
> 90 Days
Past Due
Total
Past Due(1)
Loans Not
Past Due
Total(2)
As of June 30, 2023
Commercial real estate$— $— $— $— $847,863 $847,863 
SBA—real estate851 198 5,056 6,105 218,371 224,476 
SBA—non-real estate157 80 597 834 13,475 14,309 
C&I200 — — 200 111,960 112,160 
Home mortgage3,216 1,370 1,462 6,048 510,178 516,226 
Consumer— — — — 1,163 1,163 
Total$4,424 $1,648 $7,115 $13,187 $1,703,010 $1,716,197 
As of December 31, 2022
Commercial real estate$— $— $— $— $842,208 $842,208 
SBA—real estate199 175 — 374 220,966 221,340 
SBA—non-real estate117 49 381 547 12,830 13,377 
C&I— — 441 441 116,510 116,951 
Home mortgage1,707 1,522 342 3,571 479,378 482,949 
Consumer— — — — 1,467 1,467 
Total$2,023 $1,746 $1,164 $4,933 $1,673,359 $1,678,292 
(1)Includes guaranteed portion of SBA loans of $5.3 million as of June 30, 2023.
(2)Excludes accrued interest receivables of $6.8 million and $6.4 million as of June 30, 2023 and December 31, 2022, respectively.
Financing Receivable, Modified
The following table presents the amortized cost of modified loans and the financial effects of the modification as of June 30, 2023 by loan class and modification type:

($ in thousands)Interest OnlyTotalPercentage to Each Loan Type
As of June 30, 2023
SBA—non-real estate$139 $139 0.99 %
Total$139 $139 0.99 %
The following table presents the performance of loans that were modified as of June 30, 2023 since the adoption of ASU 2022-02 on January 1, 2023:

($ in thousands)CurrentTotal
As of June 30, 2023
SBA—non-real estate$139 $139 
Total$139 $139 
Schedule of Credit Risk Ratings by Portfolio Segment
The following table presents the loan portfolio's amortized cost by loan type, risk rating and year of origination as of as of June 30, 2023:

June 30, 2023
Term Loans by Origination YearRevolving Loans
Total(1)
($ in thousands)2023
2022
202120202019Prior
Commercial real estate
Pass$47,055 $213,706 $151,119 $98,413 $146,211 $180,349 $11,010 $847,863 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Subtotal$47,055 $213,706 $151,119 $98,413 $146,211 $180,349 $11,010 $847,863 
Current period charge-offs$— $— $— $— $91 $— $— $91 
SBA— real estate
Pass$9,680 $47,869 $27,462 $27,817 $30,354 $72,144 $— $215,326 
Special mention— 1,045 — — 939 925 — 2,909 
Substandard— — 5,056 — — 1,185 — 6,241 
Doubtful— — — — — — — — 
Subtotal$9,680 $48,914 $32,518 $27,817 $31,293 $74,254 $— $224,476 
Current period charge-offs$— $— $11 $— $— $— $— $11 
SBA—non-real estate
Pass$3,040 $2,917 $531 $2,085 $1,018 $3,965 $— $13,556 
Special mention— — — — — — — — 
Substandard— — — — — 477 — 477 
Doubtful— — — — — 276 — 276 
Subtotal$3,040 $2,917 $531 $2,085 $1,018 $4,718 $— $14,309 
Current period charge-offs$— $— $— $— $— $34 $— $34 
C&I
Pass$9,284 $24,277 $26,291 $6,246 $4,955 $2,773 $38,134 $111,960 
Special mention— — — — — — — — 
Substandard— — — — — — 200 200 
Doubtful— — — — — — — — 
Subtotal$9,284 $24,277 $26,291 $6,246 $4,955 $2,773 $38,334 $112,160 
Current period charge-offs$— $— $— $— $— $— $— $— 
Home mortgage
Pass$51,276 $318,076 $80,294 $20,087 $9,794 $34,145 $— $513,672 
Special mention— — — — — — — — 
Substandard— 904 873 777 — — — 2,554 
Doubtful— — — — — — — — 
Subtotal$51,276 $318,980 $81,167 $20,864 $9,794 $34,145 $— $516,226 
Current period charge-offs$— $— $— $— $— $— $— $— 
Consumer
Pass$5 $— $— $— $126 $35 $997 $1,163 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Subtotal$5 $— $— $— $126 $35 $997 $1,163 
Current period charge-offs$— $— $— $— $— $— $— $— 
Total loans
Pass$120,340 $606,845 $285,697 $154,648 $192,458 $293,411 $50,141 $1,703,540 
Special mention— 1,045 — — 939 925 — 2,909 
Substandard— 904 5,929 777 — 1,662 200 9,472 
Doubtful— — — — — 276 — 276 
Subtotal$120,340 $608,794 $291,626 $155,425 $193,397 $296,274 $50,341 $1,716,197 
Current period charge-offs$— $— $11 $— $91 $34 $— $136 
(1)Excludes accrued interest receivables of $6.8 million as of June 30, 2023.

The following table presents the loan portfolio's amortized cost by loan type and risk rating of as of December 31, 2022:

($ in thousands)Pass
Special
Mention
SubstandardDoubtful
Total(1)
As of December 31, 2022
Commercial real estate$841,645 $563 $— $— $842,208 
SBA—real estate220,348 — 992 — 221,340 
SBA—non-real estate12,897 — 480 — 13,377 
C&I116,396 — 279 276 116,951 
Home mortgage481,669 — 1,280 — 482,949 
Consumer1,467 — — — 1,467 
Total$1,674,422 $563 $3,031 $276 $1,678,292 
(1)Excludes accrued interest receivables of $6.8 million and $6.4 million as of June 30, 2023 and December 31, 2022, respectively.