Loans (Tables)

6 Months Ended

Jun. 30, 2020

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 as of June 30, 2020 and December 31, 2019:

(In thousands)	June 30, 2020		December 31, 2019
SBA loans held for investment	$	36,966	$	35,767
SBA PPP loans		136,039		—
Commercial loans
SBA 504 loans		23,299		26,726
Commercial other		121,961		112,014
Commercial real estate		586,332		578,643
Commercial real estate construction		61,160		47,649
Residential mortgage loans		469,987		467,706
Consumer loans
Home equity		67,592		69,589
Consumer other		78,569		73,935
Total loans held for investment	$	1,581,905	$	1,412,029
SBA loans held for sale		10,602		13,529
Total loans	$	1,592,507	$	1,425,558

Loan Portfolio by Class According to Credit Quality Indicators

The tables below detail the Company’s loan portfolio by class according to their credit quality indicators discussed in the paragraphs above as of June 30, 2020:

	June 30, 2020
	SBA & Commercial loans - Internal risk ratings
(In thousands)	Pass		Special mention		Substandard		Total
SBA loans held for investment	$	35,691	$	—	$	1,275	$	36,966
SBA PPP loans		136,007		—		32		136,039
Commercial loans
SBA 504 loans		23,275		—		24		23,299
Commercial other		117,793		2,500		1,668		121,961
Commercial real estate		568,819		46		17,467		586,332
Commercial real estate construction		61,160		—		—		61,160
Total commercial loans		771,047		2,546		19,159		792,752
Total SBA and commercial loans	$	942,745	$	2,546	$	20,466	$	965,757
			Residential mortgage & Consumer loans - Performing/Nonperforming
(In thousands)			Performing		Nonperforming		Total
Residential mortgage loans			$	463,795	$	6,192	$	469,987
Consumer loans
Home equity				67,087		505		67,592
Consumer other				78,569		—		78,569
Total consumer loans				145,656		505		146,161
Total residential mortgage and consumer loans			$	609,451	$	6,697	$	616,148

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, 2019:

	December 31, 2019
	SBA & Commercial loans - Internal risk ratings
(In thousands)	Pass		Special mention		Substandard		Total
SBA loans held for investment	$	34,202	$	1,115	$	450	$	35,767
Commercial loans
SBA 504 loans		24,878		1,808		40		26,726
Commercial other		107,220		3,361		1,433		112,014
Commercial real estate		576,326		758		1,559		578,643
Commercial real estate construction		47,649		—		—		47,649
Total commercial loans		756,073		5,927		3,032		765,032
Total SBA and commercial loans	$	790,275	$	7,042	$	3,482	$	800,799
			Residential mortgage & Consumer loans - Performing/Nonperforming
(In thousands)			Performing		Nonperforming		Total
Residential mortgage loans			$	463,770	$	3,936	$	467,706
Consumer loans
Home equity				69,589		—		69,589
Consumer other				73,915		20		73,935
Total consumer loans				143,504		20		143,524
Total residential mortgage and consumer loans			$	607,274	$	3,956	$	611,230

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 June 30, 2020 and December 31, 2019:

	June 30, 2020
					90+ days
	30‑59 days		60‑89 days		and still		Nonaccrual		Total past
(In thousands)	past due		past due		accruing		(1)		due		Current		Total loans
SBA loans held for investment	$	828	$	606	$	—	$	2,331	$	3,765	$	33,201	$	36,966
SBA PPP loans		—		—		—		32		32		136,007		136,039
Commercial loans
SBA 504 loans		—		—		—		—		—		23,299		23,299
Commercial other		—		71		—		10		81		121,880		121,961
Commercial real estate		—		—		—		403		403		585,929		586,332
Commercial real estate construction		—		—		—		—		—		61,160		61,160
Residential mortgage loans		2,958		—		—		6,192		9,150		460,837		469,987
Consumer loans
Home equity		170		—		—		505		675		66,917		67,592
Consumer other		—		—		—		—		—		78,569		78,569
Total loans held for investment		3,956		677		—		9,473		14,106		1,567,799		1,581,905
SBA loans held for sale		—		—		—		—		—		10,602		10,602
Total loans	$	3,956	$	677	$	—	$	9,473	$	14,106	$	1,578,401	$	1,592,507

(1) At June 30, 2020, nonaccrual loans included $307 thousand of loans guaranteed by the SBA.

	December 31, 2019
					90+ days
	30‑59 days		60‑89 days		and still		Nonaccrual		Total past
(In thousands)	past due		past due		accruing		(1)		due		Current		Total loans
SBA loans held for investment	$	1,048	$	—	$	—	$	1,164	$	2,212	$	33,555	$	35,767
Commercial loans
SBA 504 loans		—		1,808		—		—		1,808		24,918		26,726
Commercial other		71		—		—		316		387		111,627		112,014
Commercial real estate		215		—		—		213		428		578,215		578,643
Commercial real estate construction		—		—		—		—		—		47,649		47,649
Residential mortgage loans		4,383		1,676		930		3,936		10,925		456,781		467,706
Consumer loans
Home equity		1,446		178		—		—		1,624		67,965		69,589
Consumer other		—		113		—		20		133		73,802		73,935
Total loans held for investment		7,163		3,775		930		5,649		17,517		1,394,512		1,412,029
SBA loans held for sale		—		—		—		—		—		13,529		13,529
Total loans	$	7,163	$	3,775	$	930	$	5,649	$	17,517	$	1,408,041	$	1,425,558

(1) At December 31, 2019, nonaccrual loans included $59 thousand of loans guaranteed by the SBA.

Impaired Loans with Associated Allowance Amount

The following table provides detail on the Company’s impaired loans that are individually evaluated for impairment with the associated allowance amount, if applicable, as of June 30, 2020:

	June 30, 2020
	Unpaid
	principal		Recorded		Specific
(In thousands)	balance		investment		reserves
With no related allowance:
SBA loans held for investment (1)	$	1,884	$	1,784	$	—
Commercial loans
Commercial other		684		684		—
Total commercial loans		684		684		—
Residential mortgage loans		4,871		4,766		—
Consumer loans:
Home equity		505		505		—
Total impaired loans with no related allowance		7,944		7,739		—
With an allowance:
SBA loans held for investment (1)		356		272		177
Commercial loans
Commercial other		28		10		10
Commercial real estate		903		403		403
Total commercial loans		931		413		413
Residential mortgage loans		1,426		1,426		256
Total impaired loans with a related allowance		2,713		2,111		846
Total individually evaluated impaired loans:
SBA loans held for investment (1)		2,240		2,056		177
Commercial loans
Commercial other		28		10		10
Commercial real estate		1,587		1,087		403
Total commercial loans		1,615		1,097		413
Residential mortgage loans		6,297		6,192		256
Consumer loans:
Home equity		505		505		—
Total individually evaluated impaired loans	$	10,657	$	9,850	$	846

(1) Balances are reduced by amount guaranteed by the SBA of $307 thousand at June 30, 2020.

The following table provides detail on the Company’s impaired loans that are individually evaluated for impairment with the associated allowance amount, if applicable, as of December 31, 2019:

	December 31, 2019
	Unpaid
	principal		Recorded		Specific
(In thousands)	balance		investment		reserves
With no related allowance:
SBA loans held for investment (1)	$	1,224	$	1,064	$	—
Commercial loans
Commercial real estate		213		213		—
Total commercial loans		213		213		—
Total impaired loans with no related allowance		1,437		1,277		—
With an allowance:
SBA loans held for investment (1)		157		41		41
Commercial loans
Commercial other		816		316		316
Commercial real estate		705		705		57
Total commercial loans		1,521		1,021		373
Total impaired loans with a related allowance		1,678		1,062		414
Total individually evaluated impaired loans:
SBA loans held for investment (1)		1,381		1,105		41
Commercial loans
Commercial other		816		316		316
Commercial real estate		918		918		57
Total commercial loans		1,734		1,234		373
Total individually evaluated impaired loans	$	3,115	$	2,339	$	414

(1) Balances are reduced by amount guaranteed by the SBA of $59 thousand at December 31, 2019.

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 three and six months ended June 30, 2020 and 2019. 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, and therefore no interest income is recognized. The interest income recognized on impaired loans noted below represents primarily accruing TDRs and nominal amounts of income recognized on a cash basis for well-collateralized impaired loans.

	For the three months ended June 30,
	2020				2019
			Interest				Interest
			income				income
	Average		recognized		Average		recognized
	recorded		on impaired		recorded		on impaired
(In thousands)	investment		loans		investment		loans
SBA loans held for investment (1)	$	1,265	$	3	$	618	$	4
Commercial loans
Commercial other		99		12		—		—
Commercial real estate		1,282		33		1,486		9
Residential mortgage loans		6,054		52		—		—
Consumer loans
Home equity		505		4		—		—
Total	$	9,205	$	104	$	2,104	$	13

	For the six months ended June 30,
	2020				2019
			Interest				Interest
			income				income
	Average		recognized		Average		recognized
	recorded		on impaired		recorded		on impaired
(In thousands)	investment		loans		investment		loans
SBA loans held for investment (1)	$	1,197	$	6	$	901	$	8
Commercial loans
SBA 504 loans		300		32		—		—
Commercial other		52		21		4		—
Commercial real estate		1,165		45		1,637		17
Residential mortgage loans		5,875		81		—		—
Consumer loans
Home equity		424		9		—		—
Consumer other		38		—		—		—
Total	$	9,051	$	194	$	2,542	$	25

(1) Balances are reduced by the average amount guaranteed by the SBA of $418 thousand and $84 thousand for the six months ended June 30, 2020 and 2019, respectively.