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Loans by Type
 9 Months Ended
Sep. 30, 2021
Receivables [Abstract]  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]
Note 6 – Loans by Type
A summary of loan categories is as follows:
(In thousands)September 30,
2021		December 31,
2020
Commercial and industrial $356,532 $298,984 
Real estate:
Commercial:
Mortgage 103,596 100,419 
Construction 24,705 25,090 
Faith-based:
Mortgage 358,493 333,661 
Construction 13,272 23,818 
Paycheck Protection Program (“PPP”) 16,307 109,704 
Total loans $872,905 $891,676 
In support of the Coronavirus, Aid, Relief, and Economic Security Act (the “CARES Act”), the Bank processed 460 applications for PPP loans with an aggregate principal balance of $210,000,000 during 2021 and 2020 to provide much-needed cash to small business and self-employed taxpayers during the COVID-19 crisis. The loans were primarily made to existing bank customers and are 100% guaranteed by the Small Business Administration (“SBA”) with no allowance for credit loss allocation. The Company has unaccreted PPP loan fees of $479,000 at September 30, 2021.
The following table presents the aging of loans past due by category at September 30, 2021 and December 31, 2020:
PerformingNonperforming
(In thousands)Current30-59
Days		60-89
Days		90
Days
and
Over		Non-
accrual		Total
Loans
September 30, 2021
Commercial and industrial $356,532 $— $— $— $— $356,532 
Real estate
Commercial:
Mortgage 103,596 — — — — 103,596 
Construction 24,705 — — — — 24,705 
Faith-based:
Mortgage 358,493 — — — — 358,493 
Construction 13,272 — — — — 13,272 
PPP 16,307 — — — — 16,307 
Total $872,905 $— $— $— $— $872,905 
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 
The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of September 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
September 30, 2021
Commercial and industrial $345,652 $10,880 $— $356,532 
Real estate
Commercial:
Mortgage 103,596 — — 103,596 
Construction 24,705 — — 24,705 
Faith-based:
Mortgage 355,530 2,963 — 358,493 
Construction 13,272 — — 13,272 
PPP 16,307 — — 16,307 
Total $859,062 $13,843 $— $872,905 
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.
The company had no loans evaluated for expected credit losses on an individual basis as of September 30, 2021. The Company had one loan in the amount of $2,500,000 at December 31, 2020 that was individually evaluated for credit losses, resulting in a specific allowance for credit loss of $500,000 at December 31, 2020. Due to improvement in borrower conditions, this loan was no longer evaluated individually for credit losses at September 30, 2021.
There were no foreclosed loans recorded as other real estate owned (included in other assets) as of September 30, 2021 or December 31, 2020.
There were no loans considered troubled debt restructurings as of September 30, 2021. There were two loans that were considered troubled debt restructurings at December 31, 2020 and these loans were removed from troubled debt restructuring status during the first quarter of 2021.
The recorded investment by category for loans considered a 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 11,029 1,029 
Total 2$9,802 $9,802 
During the year ended December 31, 2020, two loans were restructured to change the amortization schedule to reduce payments from the borrowers while the contractual interest rate remained unchanged. These loans did not have a specific allowance for credit loss allocated to them at December 31, 2020. There were no loans restructured that subsequently defaulted during the year ended December 31, 2020.
A summary of the activity in allowance for credit losses (“ACL”) by category for the periods ended September 30, 2021 and December 31, 2020 is as follows:
(In thousands)C&ICREFaith-based
CRE		ConstructionTotal
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 (289)(99)76 (128)(440)
Recoveries 13 — 15 — 28 
Balance at September 30, 2021
$4,359 $1,076 $5,808 $289 $11,532 
The release of credit losses during the nine months ended September 30, 2021 is primarily due to improved economic conditions and the removal of specific allowances for credit losses on impaired loans.
(In thousands)C&ICREFaith-based
CRE		ConstructionTotal
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 
The provision for credit losses during the year ended December 31, 2020 was due to the Company’s forecast of macroeconomic factors, which worsened during 2020, primarily due to the COVID-19 pandemic.