Loans (Tables)

12 Months Ended

Dec. 31, 2017

Loans and Leases Receivable Disclosure [Abstract]

Classification of Loans By Class

The following table sets forth the classification of loans by class, including unearned fees, deferred costs and excluding the allowance for loan losses for the past two years:

(In thousands)	December 31, 2017		December 31, 2016
SBA loans held for investment	$	43,999	$	42,492
SBA 504 loans	21,871		26,344
Commercial loans
Commercial other	82,825		58,447
Commercial real estate	469,696		422,418
Commercial real estate construction	54,473		28,306
Residential mortgage loans	365,145		289,093
Consumer loans
Home equity	55,817		47,411
Consumer other	54,038		44,130
Total loans held for investment	$	1,147,864	$	958,641
SBA loans held for sale	22,810		14,773
Total loans	$	1,170,674	$	973,414

Loan Portfolio by Class According to Their Credit Quality Indicators

	December 31, 2017
	SBA, SBA 504 & Commercial loans - Internal risk ratings
(In thousands)	Pass		Special mention		Substandard		Total
SBA loans held for investment	$	42,415	$	373	$	1,211	$	43,999
SBA 504 loans	20,751		1,024		96		21,871
Commercial loans
Commercial other	82,201		599		25		82,825
Commercial real estate	464,589		3,047		2,060		469,696
Commercial real estate construction	54,473		—		—		54,473
Total commercial loans	601,263		3,646		2,085		606,994
Total SBA, SBA 504 and commercial loans	$	664,429	$	5,043	$	3,392	$	672,864
	Residential mortgage & Consumer loans - Performing/Nonperforming
(In thousands)			Performing		Nonperforming		Total
Residential mortgage loans			$	363,476	$	1,669	$	365,145
Consumer loans
Home equity			55,192		625		55,817
Consumer other			54,038		—		54,038
Total consumer loans			109,230		625		109,855
Total residential mortgage and consumer loans			$	472,706	$	2,294	$	475,000

The tables below detail the Company’s loan portfolio by class according to their credit quality indicators discussed in the paragraphs above as of December 31, 2016: 

	December 31, 2016
	SBA, SBA 504 & Commercial loans - Internal risk ratings
(In thousands)	Pass		Special mention		Substandard		Total
SBA loans held for investment	$	38,990	$	2,023	$	1,479	$	42,492
SBA 504 loans	24,635		1,073		636		26,344
Commercial loans
Commercial other	57,000		1,422		25		58,447
Commercial real estate	408,288		13,729		401		422,418
Commercial real estate construction	27,556		750		—		28,306
Total commercial loans	492,844		15,901		426		509,171
Total SBA, SBA 504 and commercial loans	$	556,469	$	18,997	$	2,541	$	578,007
	Residential mortgage & Consumer loans - Performing/Nonperforming
(In thousands)			Performing		Nonperforming		Total
Residential mortgage loans			$	286,421	$	2,672	$	289,093
Consumer loans
Home equity			46,929		482		47,411
Consumer other			42,154		1,976		44,130
Total consumer loans			890,833		2,458		91,541
Total residential mortgage and consumer loans			$	375,504	$	5,130	$	380,634

Aging Analysis of Past Due And Nonaccrual Loans by Loan Class

The following tables set forth an aging analysis of past due and nonaccrual loans as of December 31, 2017 and December 31, 2016:

	December 31, 2017
(In thousands)	30-59 days past due		60-89 days past due		90+ days and still accruing		Nonaccrual (1)		Total past due		Current		Total loans
SBA loans held for investment	$	240	$	313	$	—	$	632	$	1,185	$	42,814	$	43,999
SBA 504 loans	—		—		—		—		—		21,871		21,871
Commercial loans
Commercial other	23		—		60		25		108		82,717		82,825
Commercial real estate	558		1,073		—		43		1,674		468,022		469,696
Commercial real estate construction	—		—		—		—		—		54,473		54,473
Residential mortgage loans	1,830		958		—		1,669		4,457		360,688		365,145
Consumer loans
Home equity	51		205		—		625		881		54,936		55,817
Consumer other	3		—		—		—		3		54,035		54,038
Total loans held for investment	$	2,705	$	2,549	$	60	$	2,994	$	8,308	$	1,139,556	$	1,147,864
SBA loans held for sale	—		—		—		—		—		22,810		22,810
Total loans	$	2,705	$	2,549	$	60	$	2,994	$	8,308	$	1,162,366	$	1,170,674

(1) At December 31, 2017, nonaccrual loans included $27 thousand of loans guaranteed by the SBA.

	December 31, 2016
(In thousands)	30-59 days past due		60-89 days past due		90+ days and still accruing		Nonaccrual (1)		Total past due		Current		Total loans
SBA loans held for investment	$	491	$	397	$	—	$	1,168	$	2,056	$	40,436	$	42,492
SBA 504 loans	—		—		—		513		513		25,831		26,344
Commercial loans
Commercial other	50		—		—		25		75		58,372		58,447
Commercial real estate	1,108		574		—		401		2,083		420,335		422,418
Commercial real estate construction	—		—		—		—		—		28,306		28,306
Residential mortgage loans	2,932		263		—		2,672		5,867		283,226		289,093
Consumer loans
Home equity	227		—		—		482		709		46,702		47,411
Consumer other	—		—		—		1,976		1,976		42,154		44,130
Total loans held for investment	$	4,808	$	1,234	$	—	$	7,237	$	13,279	$	945,362	$	958,641
SBA loans held for sale	—		—		—		—		—		14,773		14,773
Total loans	$	4,808	$	1,234	$	—	$	7,237	$	13,279	$	960,135	$	973,414

(1) At December 31, 2016, nonaccrual loans included $153 thousand of TDRs and $60 thousand of loans guaranteed by the SBA. 

Impaired Loans with Associated Allowance Amount

The following tables provide detail on the Company’s loans individually evaluated for impairment with the associated allowance amount, if applicable, as of December 31, 2017 and December 31, 2016: 

	December 31, 2017
(In thousands)	Unpaid principal balance		Recorded investment		Specific reserves
With no related allowance:
SBA loans held for investment (1)	$	135	$	52	$	—
SBA 504 loans	—		—		—
Commercial loans
Commercial other	25		25		—
Commercial real estate	43		43		—
Total commercial loans	68		68		—
Total impaired loans with no related allowance	203		120		—
With an allowance:
SBA loans held for investment (1)	748		553		194
SBA 504 loans	—		—		—
Commercial loans
Commercial other	—		—		—
Commercial real estate	786		786		138
Total commercial loans	786		786		138
Total impaired loans with a related allowance	1,534		1,339		332
Total individually evaluated impaired loans:
SBA loans held for investment (1)	883		605		194
SBA 504 loans	—		—		—
Commercial loans
Commercial other	25		25		—
Commercial real estate	829		829		138
Total commercial loans	854		854		138
Total individually evaluated impaired loans	$	1,737	$	1,459	$	332

(1) Balances are reduced by amount guaranteed by the SBA of $27 thousand at December 31, 2017.

	December 31, 2016
(In thousands)	Unpaid principal balance		Recorded investment		Specific reserves
With no related allowance:
SBA loans held for investment (1)	$	1,235	$	653	$	—
SBA 504 loans	513		513		—
Commercial loans
Commercial other	25		25		—
Commercial real estate	42		43		—
Total commercial loans	67		68		—
Total impaired loans with no related allowance	1,815		1,234		—
With an allowance:
SBA loans held for investment (1)	975		455		246
SBA 504 loans	—		—		—
Commercial loans
Commercial other	13		1		1
Commercial real estate	358		357		33
Total commercial loans	371		358		34
Total impaired loans with a related allowance	1,346		813		280
Total individually evaluated impaired loans:
SBA loans held for investment (1)	2,210		1,108		246
SBA 504 loans	513		513		—
Commercial loans
Commercial other	38		26		1
Commercial real estate	400		400		33
Total commercial loans	438		426		34
Total individually evaluated impaired loans	$	3,161	$	2,047	$	280

(1) Balances are reduced by amount guaranteed by the SBA of $60 thousand at December 31, 2016.

Average Recorded Investments in Impaired Loans and Related Amount of Interest Recognized

The following table presents the average recorded investments in impaired loans and the related amount of interest recognized during the time period in which the loans were impaired for the years ended December 31, 2017 and 2016.  The average balances are calculated based on the month-end balances of impaired loans.  When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal under the cost recovery method, therefore no interest income is recognized.  The interest recognized on impaired loans noted below represents accruing troubled debt restructurings only and nominal amounts of income recognized on a cash basis for well-collateralized impaired loans. 

	For the years ended December 31,
	2017				2016
(In thousands)	Average recorded investment		Interest income recognized on impaired loans		Average recorded investment		Interest income recognized on impaired loans
SBA loans held for investment (1)	$	668	$	47	$	1,535	$	14
SBA 504 loans	82		—		798		—
Commercial loans
Commercial other	25		—		607		38
Commercial real estate	685		43		1,198		59
Commercial real estate construction	—		—		272		—
Total	$	1,460	$	90	$	4,410	$	111

(1) Balances are reduced by the average amount guaranteed by the SBA of $318 thousand and $246 thousand for years ended December 31, 2017 and 2016, respectively.

Schedule of Servicing Assets

A summary of the changes in the related servicing assets for the past two years follows:

	For the years ended December 31,
(In thousands)	2017			2016
Balance, beginning of year	$	2,086		$	1,389
Servicing assets capitalized	172			1,472
Amortization of expense	(458		)	(775		)
Provision for loss in fair value	—			—
Balance, end of year	$	1,800		$	2,086

Schedule of Related Party Transactions

An analysis of such loans, all of which are current as to principal and interest payments, is as follows: 

(In thousands)	December 31, 2017			December 31, 2016
Balance, beginning of year	$	29,256		$	37,394
New loans and advances	6,121			31
Loan repayments	(2,268		)	(8,169		)
Balance, end of year	$	33,109		$	29,256