Loans (Tables)

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

Summary of Loan Categories

A summary of loan categories is as follows:

	December 31,
(In thousands)	2022		2021
Commercial and industrial	$	561,616	$	450,336
Real estate:
Commercial:
Mortgage	108,166		108,759
Construction	17,874		24,797
Faith-based:
Mortgage	387,114		355,582
Construction	8,094		14,664
PPP	—		6,299
Other	42		130
Total loans	$	1,082,906	$	960,567

Schedule of Debt

The following table presents the aging of loans by loan categories at December 31, 2022:

	Performing						Nonperforming
(In thousands)	Current		30-59 Days		60-89 Days		90 Days and Over		Non- accrual		Total Loans
Commercial and industrial	$	560,466	$	—	$	—	$	—	$	1,150	$	561,616
Real estate
Commercial:
Mortgage	108,166		—		—		—		—		108,166
Construction	17,874		—		—		—		—		17,874
Faith-based:
Mortgage	387,114		—		—		—		—		387,114
Construction	8,094		—		—		—		—		8,094
PPP	—		—		—		—		—		—
Other	42		—		—		—		—		42
Total	$	1,081,756	$	—	$	—	$	—	$	1,150	$	1,082,906

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

	Performing						Nonperforming
(In thousands)	Current		30-59 Days		60-89 Days		90 Days and Over		Non- accrual		Total Loans
Commercial and industrial	$	450,336	$	—	$	—	$	—	$	—	$	450,336
Real estate
Commercial:
Mortgage	108,759		—		—		—		—		108,759
Construction	24,797		—		—		—		—		24,797
Faith-based:
Mortgage	355,582		—		—		—		—		355,582
Construction	14,664		—		—		—		—		14,664
PPP	6,299		—		—		—		—		6,299
Other	130		—		—		—		—		130
Total	$	960,567	$	—	$	—	$	—	$	—	$	960,567

Schedule of Credit Exposure of the Loan Portfolio

The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of December 31, 2022:

(In thousands)	Loans Subject to Normal Monitoring(1)		Performing Loans Subject to Special Monitoring(2)		Nonperforming Loans Subject to Special Monitoring(2)		Total Loans
Commercial and industrial	$	549,241	$	11,225	$	1,150	$	561,616
Real estate
Commercial:
Mortgage	108,166		—		—		108,166
Construction	17,874		—		—		17,874
Faith-based:
Mortgage	386,169		945		—		387,114
Construction	8,094		—		—		8,094
PPP	—		—		—		—
Other	42		—		—		42
Total	$	1,069,586	$	12,170	$	1,150	$	1,082,906

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

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

(In thousands)	Loans Subject to Normal Monitoring(1)		Performing Loans Subject to Special Monitoring(2)		Nonperforming Loans Subject to Special Monitoring(2)		Total Loans
Commercial and industrial	$	440,607	$	9,729	$	—	$	450,336
Real estate
Commercial:
Mortgage	108,759		—		—		108,759
Construction	24,797		—		—		24,797
Faith-based:
Mortgage	352,717		2,865		—		355,582
Construction	14,664		—		—		14,664
PPP	6,299		—		—		6,299
Other	130		—		—		130
Total	$	947,973	$	12,594	$	—	$	960,567

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

A summary of the ACL by category for the period ended December 31, 2022 is as follows:

(In thousands)	C&I		CRE		Faith-based CRE		Construction		Total
Allowance for credit losses on loans:
Balance at December 31, 2021	$	5,034	$	1,031	$	5,684	$	292	$	12,041
Provision for (release of) credit losses (1)	931		(91)		753		(108)		1,485
Recoveries	13		—		—		—		13
Balance at December 31, 2022	$	5,978	$	940	$	6,437	$	184	$	13,539

(1) For the period ended December 31, 2022, there was a release of credit losses of $135,000 for unfunded commitments.

A summary of the ACL by category for the period ended December 31, 2021 is as follows:

(In thousands)	C&I		CRE		Faith-based CRE		Construction		Total
Allowance for credit losses on loans:
Balance at January 1, 2020	$	4,635	$	1,175	$	5,717	$	417	$	11,944
Provision for (release of) credit losses (1)	387		(144)		(48)		(125)		70
Recoveries	12		—		15		—		27
Balance at December 31, 2021	$	5,034	$	1,031	$	5,684	$	292	$	12,041

(1) For the period ended December 31, 2021, there was a release of credit losses of $200,000 for unfunded commitments.

As of December 31, 2022 and 2021, there were no loans to executive officers or directors, or their affiliates.

Summary of ACL by Category

A summary of the ACL by category for the period ended December 31, 2022 is as follows:

(In thousands)	C&I		CRE		Faith-based CRE		Construction		Total
Allowance for credit losses on loans:
Balance at December 31, 2021	$	5,034	$	1,031	$	5,684	$	292	$	12,041
Provision for (release of) credit losses (1)	931		(91)		753		(108)		1,485
Recoveries	13		—		—		—		13
Balance at December 31, 2022	$	5,978	$	940	$	6,437	$	184	$	13,539

(1) For the period ended December 31, 2022, there was a release of credit losses of $135,000 for unfunded commitments.

A summary of the ACL by category for the period ended December 31, 2021 is as follows:

(In thousands)	C&I		CRE		Faith-based CRE		Construction		Total
Allowance for credit losses on loans:
Balance at January 1, 2020	$	4,635	$	1,175	$	5,717	$	417	$	11,944
Provision for (release of) credit losses (1)	387		(144)		(48)		(125)		70
Recoveries	12		—		15		—		27
Balance at December 31, 2021	$	5,034	$	1,031	$	5,684	$	292	$	12,041

(1) For the period ended December 31, 2021, there was a release of credit losses of $200,000 for unfunded commitments.