Loans by Type (Tables)

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Summary of Loan Categories

A summary of loan categories is as follows:

(In thousands)	June 30, 2021		December 31, 2020
Commercial and industrial	$	330,714	$	298,984
Real estate:
Commercial:
Mortgage		103,878		100,419
Construction		24,500		25,090
Faith-based:
Mortgage		331,235		333,661
Construction		24,051		23,818
Paycheck Protection Program (“PPP”)		56,642		109,704
Total loans	$	871,020	$	891,676

Schedule of the Aging Loans by Loan Categories

The following table presents the aging of loans past due by category at June 30, 2021 and December 31, 2020:

	Performing						Nonperforming
(In thousands)	Current		30-59 Days		60-89 Days		90 Days and Over		Non- accrual		Total Loans
June 30, 2021
Commercial and industrial	$	330,714	$	—	$	—	$	—	$	—	$	330,714
Real estate
Commercial:
Mortgage		103,878		—		—		—		—		103,878
Construction		24,500		—		—		—		—		24,500
Faith-based:
Mortgage		331,235		—		—		—		—		331,235
Construction		24,051		—		—		—		—		24,051
PPP		56,642		—		—		—		—		56,642
Total	$	871,020	$	—	$	—	$	—	$	—	$	871,020
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

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 June 30, 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
June 30, 2021
Commercial and industrial	$	319,477	$	11,237	$	—	$	330,714
Real estate
Commercial:
Mortgage		103,637		241		—		103,878
Construction		24,500		—		—		24,500
Faith-based:
Mortgage		328,236		2,999		—		331,235
Construction		24,051		—		—		24,051
PPP		56,642		—		—		56,642
Total	$	856,543	$	14,477	$	—	$	871,020
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.

Summary of Category of Loans Considered as Troubled Debt Restructuring

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

Summary of ACL by Category

A summary of the activity in allowance for credit losses (“ACL”) by category for the period ended June 30, 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		(509)		(54)		(199)		(28)		($790)
Recoveries		2		—		15		—		17
Balance at June 30, 2021	$	4,128	$	1,121	$	5,533	$	389	$	11,171

The release of provision for credit losses during the six months ended June 30, 2021 is primarily due to improved economic conditions and the removal of specific allowance for credit loss allocations on impaired loans.

(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