Loans (Tables)

12 Months Ended

Dec. 31, 2022

Loans

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, 2022		December 31, 2021
SBA loans held for investment	$	38,468	$	36,075
SBA PPP loans		5,908		46,450
Commercial loans
SBA 504 loans		35,077		27,479
Commercial other		117,566		109,903
Commercial real estate		903,126		704,674
Commercial real estate construction		131,774		89,670
Residential mortgage loans		605,091		409,355
Consumer loans
Home equity		68,310		65,380
Consumer other		9,854		12,564
Residential construction loans		163,457		120,525
Total loans held for investment	$	2,078,631	$	1,622,075
SBA loans held for sale		27,928		27,373
Total loans	$	2,106,559	$	1,649,448

Loan Portfolio by Class According to Their 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 December 31, 2022:

	December 31, 2022
	SBA & Commercial loans - Internal risk ratings
(In thousands)	Pass		Special mention		Substandard		Total
SBA loans held for investment	$	37,163	$	558	$	747	$	38,468
SBA PPP loans		5,908		—		—		5,908
Commercial loans
SBA 504 loans		35,077		—		—		35,077
Commercial other		110,107		6,220		1,239		117,566
Commercial real estate		894,110		6,228		2,788		903,126
Commercial real estate construction		131,774		—		—		131,774
Total commercial loans		1,171,068		12,448		4,027		1,187,543
Total commercial loans and SBA loans held for investment	$	1,214,139	$	13,006	$	4,774	$	1,231,919
			Residential mortgage, Consumer & Residential construction loans - Performing/Nonperforming
(In thousands)			Performing		Nonperforming		Total
Residential mortgage loans			$	601,730	$	3,361	$	605,091
Consumer loans
Home equity				68,310		—		68,310
Consumer other				9,854		—		9,854
Total consumer loans				78,164		—		78,164
Residential construction loans				160,025		3,432		163,457
Total residential mortgage, consumer and residential construction loans			$	839,919	$	6,793	$	846,712

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, 2021:

	December 31, 2021
	SBA & Commercial loans - Internal risk ratings
(In thousands)	Pass		Special mention		Substandard		Total
SBA loans held for investment	$	34,959	$	745	$	371	$	36,075
SBA PPP loans		46,450		—		—		46,450
Commercial loans
SBA 504 loans		27,479		—		—		27,479
Commercial other		105,388		1,976		2,539		109,903
Commercial real estate		694,627		7,980		2,067		704,674
Commercial real estate construction		86,770		2,900		—		89,670
Total commercial loans		914,264		12,856		4,606		931,726
Total commercial loans and SBA loans held for investment	$	995,673	$	13,601	$	4,977	$	1,014,251
			Residential mortgage, Consumer & Residential construction loans - Performing/Nonperforming
(In thousands)			Performing		Nonperforming		Total
Residential mortgage loans			$	406,093	$	3,262	$	409,355
Consumer loans
Home equity				65,170		210		65,380
Consumer other				12,564		—		12,564
Total consumer loans				77,734		210		77,944
Residential construction loans				117,403		3,122		120,525
Total residential mortgage, consumer and residential construction loans			$	601,230	$	6,594	$	607,824

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, 2022 and December 31, 2021:

	December 31, 2022
					90+ days
	30‑59 days		60‑89 days		and still				Total past
(In thousands)	past due		past due		accruing		Nonaccrual		due (1)		Current		Total loans
SBA loans held for investment	$	—	$	576	$	—	$	690	$	1,266	$	37,202	$	38,468
Commercial loans
SBA 504 loans		—		—		—		—		—		35,077		35,077
Commercial other		198		300		—		777		1,275		116,291		117,566
Commercial real estate		22		188		—		805		1,015		902,111		903,126
Commercial real estate construction		—		—		—		—		—		131,774		131,774
Residential mortgage loans		—		982		—		3,361		4,343		600,748		605,091
Consumer loans
Home equity		—		—		—		—		—		68,310		68,310
Consumer other		18		7		—		—		25		9,829		9,854
Residential construction loans		—		—		—		3,432		3,432		160,025		163,457
Total loans held for investment		238		2,053		—		9,065		11,356		2,061,367		2,072,723
SBA loans held for sale		2,195		—		—		—		2,195		25,733		27,928
Total loans, excluding SBA PPP	$	2,433	$	2,053	$	—	$	9,065	$	13,551	$	2,087,100	$	2,100,651

(1) At December 31, 2022, the Company had $1.4 million of SBA PPP loans past due. The Company is in process of working through these past due credits with the SBA and the relevant customers.

	December 31, 2021
					90+ days
	30‑59 days		60‑89 days		and still				Total past
(In thousands)	past due		past due		accruing		Nonaccrual		due (2)		Current		Total loans
SBA loans held for investment	$	1,558	$	—	$	—	$	510	$	2,068	$	34,007	$	36,075
Commercial loans
SBA 504 loans		—		—		—		—		—		27,479		27,479
Commercial other		—		33		—		2,216		2,249		107,654		109,903
Commercial real estate		334		565		—		366		1,265		703,409		704,674
Commercial real estate construction		—		—		—		—		—		89,670		89,670
Residential mortgage loans		3,688		—		—		3,262		6,950		402,405		409,355
Consumer loans
Home equity		39		—		—		210		249		65,131		65,380
Consumer other		—		—		—		—		—		12,564		12,564
Residential construction loans		—		845		—		3,122		3,967		116,558		120,525
Total loans held for investment		5,619		1,522		—		9,686		16,827		1,605,248		1,622,075
SBA loans held for sale		—		—		—		—		—		27,373		27,373
Total loans, excluding SBA PPP	$	5,619	$	1,522	$	—	$	9,686	$	16,827	$	1,632,621	$	1,649,448

(2) At December 31, 2021, the Company had $79 thousand of SBA PPP loans past due. The Company is in process of working through these past due credits with the SBA and the relevant customers.

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, 2022 and December 31, 2021:

	December 31, 2022
	Unpaid
	principal		Recorded		Specific
(In thousands)	balance		investment		reserves
With no related allowance:
SBA loans held for investment	$	687	$	399	$	—
Commercial loans
Commercial other		10		10		—
Commercial real estate		3,169		2,219		—
Total commercial loans		3,179		2,229		—
Residential mortgage loans		2,054		2,022		—
Total impaired loans with no related allowance		5,920		4,650		—
With an allowance:
SBA loans held for investment		316		291		115
Commercial loans
Commercial other		2,022		872		516
Total commercial loans		2,022		872		516
Residential mortgage loans		1,345		1,339		36
Residential construction loans		3,432		3,432		1,112
Total impaired loans with a related allowance		7,115		5,934		1,779
Total individually evaluated impaired loans:
SBA loans held for investment		1,003		690		115
Commercial loans
Commercial other		2,032		882		516
Commercial real estate		3,169		2,219		—
Total commercial loans		5,201		3,101		516
Residential mortgage loans		3,399		3,361		36
Residential construction loans		3,432		3,432		1,112
Total individually evaluated impaired loans	$	13,035	$	10,584	$	1,779

	December 31, 2021
	Unpaid
	principal		Recorded		Specific
(In thousands)	balance		investment		reserves
With no related allowance:
SBA loans held for investment	$	606	$	506	$	—
Commercial loans
Commercial other		71		70		—
Commercial real estate		1,493		1,493		—
Total commercial loans		1,564		1,563		—
Residential mortgage loans		1,630		1,630		—
Consumer loans:
Home equity		210		210		—
Residential construction loans		2,636		2,636		—
Total impaired loans with no related allowance		6,646		6,545		—
With an allowance:
SBA loans held for investment		35		4		4
Commercial loans
Commercial other		2,832		2,531		2,490
Commercial real estate		973		126		125
Total commercial loans		3,805		2,657		2,615
Residential mortgage loans		1,632		1,632		80
Consumer loans:
Home equity		427		427		56
Residential construction loans		486		486		68
Total impaired loans with a related allowance		6,385		5,206		2,823
Total individually evaluated impaired loans:
SBA loans held for investment		641		510		4
Commercial loans
Commercial other		2,903		2,601		2,490
Commercial real estate		2,466		1,619		125
Total commercial loans		5,369		4,220		2,615
Residential mortgage loans		3,262		3,262		80
Consumer loans:
Home equity		637		637		56
Residential construction loans		3,122		3,122		68
Total individually evaluated impaired loans	$	13,031	$	11,751	$	2,823

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

	For the years ended December 31,
	2022				2021				2020
			Interest				Interest				Interest
			income				income				income
	Average		recognized		Average		recognized		Average		recognized
	recorded		on impaired		recorded		on impaired		recorded		on impaired
(In thousands)	investment		loans		investment		loans		investment		loans
SBA loans held for investment	$	940	$	33	$	1,118	$	102	$	1,674	$	70
Commercial loans
SBA 504 loans		—		—		—		—		150		32
Commercial other		1,481		109		889		59		93		31
Commercial real estate		2,073		134		1,637		137		1,232		124
Commercial real estate construction		—		—		—		—		—		33
Residential mortgage loans		2,869		38		4,358		17		5,409		131
Consumer loans
Home equity		453		8		553		23		726		67
Consumer other		—		—		1		—		—		—
Residential construction loans		2,936		49		2,718		50		165		—
Total	$	10,752	$	371	$	11,274	$	388	$	9,449	$	488

Schedule of Servicing Assets

	For the years ended December 31,
(In thousands)	2022		2021		2020
Balance, beginning of year	$	1,013	$	1,857	$	2,026
Servicing assets capitalized		152		126		722
Amortization of expense, net		(474)		(970)		(891)
Balance, end of year	$	691	$	1,013	$	1,857

Schedule of Related Party Transactions

(In thousands)	December 31, 2022		December 31, 2021
Balance, beginning of year	$	11,502	$	12,082
New loans and advances		—		402
Loan repayments		(784)		(982)
Loans removed		(2,594)		—
Balance, end of year	$	8,124	$	11,502