Activity in the Allowance for Loan Losses by Portfolio Segment |
The following tables detail the activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2023 and 2022: | | | | | | | | | | | | | | | | | | | | | For the three months ended September 30, 2023 | | | | SBA | | | | | | | | | | | Residential | | | | (In thousands) | | Held for Investment | | Commercial | | Residential | | Consumer | | construction | | Total | Balance, beginning of period | | $ | 1,556 | | $ | 15,516 | | $ | 6,437 | | $ | 845 | | $ | 1,634 | | $ | 25,988 | Charge-offs | | | (100) | | | (500) | | | — | | | (52) | | | — | | | (652) | Recoveries | | | 1 | | | 10 | | | — | | | 37 | | | — | | | 48 | Net (charge-offs) recoveries | | | (99) | | | (490) | | | — | | | (15) | | | — | | | (604) | Provision for (credit to) credit losses charged to expense | | | 199 | | | 325 | | | (6) | | | 130 | | | (114) | | | 534 | Balance, end of period | | $ | 1,656 | | $ | 15,351 | | $ | 6,431 | | $ | 960 | | $ | 1,520 | | $ | 25,918 |
| | | | | | | | | | | | | | | | | | | | | For the three months ended September 30, 2022 | | | | | | | | | | | | | | | Residential | | | | (In thousands) | | SBA | | Commercial | | Residential | | Consumer | | construction | | Total | Balance, beginning of period | | $ | 758 | | $ | 14,908 | | $ | 4,786 | | $ | 803 | | $ | 1,603 | | $ | 22,858 | Charge-offs | | | — | | | (501) | | | — | | | (50) | | | — | | | (551) | Recoveries | | | 5 | | | 23 | | | — | | | 9 | | | — | | | 37 | Net recoveries (charge-offs) | | | 5 | | | (478) | | | — | | | (41) | | | — | | | (514) | Provision for (credit to) credit losses charged to expense | | | 68 | | | 803 | | | 449 | | | 349 | | | (152) | | | 1,517 | Balance, end of period | | $ | 831 | | $ | 15,233 | | $ | 5,235 | | $ | 1,111 | | $ | 1,451 | | $ | 23,861 |
| | | | | | | | | | | | | | | | | | | | | For the nine months ended September 30, 2023 | | | | SBA | | | | | | | | | | | | Residential | | | | (In thousands) | | Held for Investment | | Commercial | | Residential | | Consumer | | construction | | Total | Balance, beginning of period | | $ | 875 | | $ | 15,254 | | $ | 5,450 | | $ | 990 | | $ | 2,627 | | $ | 25,196 | Effect of adopting Accounting Standards Update ("ASU") No. 2016-13 ("CECL") | | | 163 | | | 171 | | | 376 | | | 101 | | | 36 | | | 847 | Charge-offs | | | (213) | | | (500) | | | — | | | (397) | | | (900) | | | (2,010) |
Recoveries | | | 16 | | | 377 | | | — | | | 73 | | | — | | | 466 | Net (charge-offs) recoveries | | | (197) | | | (123) | | | — | | | (324) | | | (900) | | | (1,544) | Provision for (credit to) loan losses charged to expense | | | 815 | | | 49 | | | 605 | | | 193 | | | (243) | | | 1,419 | Balance, end of period | | $ | 1,656 | | $ | 15,351 | | $ | 6,431 | | $ | 960 | | $ | 1,520 | | $ | 25,918 |
| | | | | | | | | | | | | | | | | | | | | For the nine months ended September 30, 2022 | | | | | | | | | | | | | | | Residential | | | | (In thousands) | | SBA | | Commercial | | Residential | | Consumer | | construction | | Total | Balance, beginning of period | | $ | 1,074 | | $ | 15,053 | | $ | 4,114 | | $ | 671 | | $ | 1,390 | | $ | 22,302 | Charge-offs | | | — | | | (1,001) | | | — | | | (96) | | | — | | | (1,097) | Recoveries | | | 33 | | | 83 | | | 1 | | | 13 | | | — | | | 130 | Net (charge-offs) recoveries | | | 33 | | | (918) | | | 1 | | | (83) | | | — | | | (967) | Provision (credit) for loan losses charged to expense | | | (276) | | | 1,098 | | | 1,120 | | | 523 | | | 61 | | | 2,526 | Balance, end of period | | $ | 831 | | $ | 15,233 | | $ | 5,235 | | $ | 1,111 | | $ | 1,451 | | $ | 23,861 |
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Allowance for Credit Losses on Financing Receivables |
The following tables present loans and their related allowance for credit losses, by portfolio segment, as of September 30, 2023 and December 31, 2022: | | | | | | | | | | | | | | | | | | | | | September 30, 2023 | | | | SBA | | | | | | | | | | | | Residential | | | | (In thousands) | | Held for Investment | | Commercial | | Residential | | Consumer | | construction | | Total | Allowance for credit losses ending balance: | | | | | | | | | | | | | | | | | | | Individually evaluated | | $ | 619 | | $ | 369 | | $ | 386 | | $ | — | | $ | 285 | | $ | 1,659 | Collectively evaluated | | | 1,037 | | | 14,982 | | | 6,045 | | | 960 | | | 1,235 | | | 24,259 | Total | | $ | 1,656 | | $ | 15,351 | | $ | 6,431 | | $ | 960 | | $ | 1,520 | | $ | 25,918 | Loan ending balances: | | | | | | | | | | | | | | | | | | | Individually evaluated | | $ | 256 | | $ | 750 | | $ | 11,059 | | $ | 131 | | $ | 3,201 | | $ | 15,397 | Collectively evaluated | | | 40,617 | | | 1,275,406 | | | 617,569 | | | 72,058 | | | 130,249 | | | 2,135,899 | Total | | $ | 40,873 | | $ | 1,276,156 | | $ | 628,628 | | $ | 72,189 | | $ | 133,450 | | $ | 2,151,296 |
| | | | | | | | | | | | | | | | | | | | | December 31, 2022 | | | | | | | | | | | | | | | Residential | | | | (In thousands) | | SBA | | Commercial | | Residential | | Consumer | | construction | | Total | Allowance for credit losses ending balance: | | | | | | | | | | | | | | | | | | | Individually evaluated for impairment | | $ | 115 | | $ | 516 | | $ | 36 | | $ | — | | $ | 1,112 | | $ | 1,779 | Collectively evaluated for impairment | | | 760 | | | 14,738 | | | 5,414 | | | 990 | | | 1,515 | | | 23,417 | Total | | $ | 875 | | $ | 15,254 | | $ | 5,450 | | $ | 990 | | $ | 2,627 | | $ | 25,196 | Loan ending balances: | | | | | | | | | | | | | | | | | | | Individually evaluated for impairment | | $ | 690 | | $ | 3,101 | | $ | 3,361 | | $ | — | | $ | 3,432 | | $ | 10,584 | Collectively evaluated for impairment | | | 71,614 | | | 1,184,442 | | | 601,730 | | | 78,164 | | | 160,025 | | | 2,095,975 | Total | | $ | 72,304 | | $ | 1,187,543 | | $ | 605,091 | | $ | 78,164 | | $ | 163,457 | | $ | 2,106,559 |
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