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Loans (Tables)
12 Months Ended
Dec. 31, 2023
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 credit losses for the past two years:

(In thousands)

    

December 31, 2023

    

December 31, 2022

SBA loans held for investment

$

38,584

$

38,468

SBA PPP loans

2,318

5,908

Commercial loans

 

  

 

  

SBA 504 loans

 

33,669

 

35,077

Commercial & industrial

 

128,402

 

117,566

Commercial real estate

 

986,230

 

903,126

Commercial real estate construction

 

129,159

 

131,774

Residential mortgage loans

 

631,506

 

605,091

Consumer loans

 

 

Home equity

 

67,037

 

68,310

Consumer other

 

5,639

 

9,854

Residential construction loans

131,277

163,457

Total loans held for investment

$

2,153,821

$

2,078,631

SBA loans held for sale

 

18,242

 

27,928

Total loans

$

2,172,063

$

2,106,559

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, 2023 and December 31, 2022:

December 31, 2023

    

    

    

90+ days

    

    

    

    

3059 days

6089 days

and still

Total past

(In thousands)

past due

past due

accruing

Nonaccrual

due (1)

Current

Total loans

SBA loans held for investment

$

551

$

185

$

$

3,444

$

4,180

$

34,404

$

38,584

Commercial loans

 

  

 

  

 

  

 

  

 

  

 

 

  

SBA 504 loans

 

 

 

 

 

 

33,669

 

33,669

Commercial & industrial

 

288

 

78

 

 

283

 

649

 

127,753

 

128,402

Commercial real estate

 

1,732

 

 

 

1,665

 

3,397

 

982,833

 

986,230

Commercial real estate construction

 

 

 

 

 

 

129,159

 

129,159

Residential mortgage loans

 

8,719

 

1,378

 

946

 

10,326

 

21,369

 

610,137

 

631,506

Consumer loans

 

 

 

 

 

  

 

 

Home equity

 

14

 

 

 

381

 

395

 

66,642

 

67,037

Consumer other

 

28

 

55

 

 

 

83

 

5,556

 

5,639

Residential construction loans

2,580

2,141

4,721

126,556

131,277

Total loans held for investment

13,912

1,696

946

18,240

34,794

2,116,709

2,151,503

SBA loans held for sale

 

 

 

 

 

 

18,242

 

18,242

Total loans, excluding SBA PPP

$

13,912

$

1,696

$

946

$

18,240

$

34,794

$

2,134,951

$

2,169,745

(1)At December 31, 2023, the Company had no SBA PPP loans past due.

December 31, 2022

    

    

    

90+ days

    

    

    

    

3059 days

6089 days

and still

Total past

(In thousands)

past due

past due

accruing

Nonaccrual

due (2)

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 & industrial

 

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

(2)At December 31, 2022, the Company had $1.4 million of SBA PPP loans past due.
Individually Evaluated Loans with Associated Allowance Amount

    

December 31, 2023

    

Unpaid

    

    

Allowance for

principal

Recorded

Credit Losses

(In thousands)

balance

investment

Allocated

With no related allowance:

  

 

  

 

  

SBA loans held for investment

$

2,264

$

2,186

$

Commercial loans

 

  

 

  

 

  

Commercial real estate

 

2,734

 

1,607

 

Total commercial loans

 

2,734

 

1,607

 

Residential mortgage loans

7,146

7,121

Consumer loans

Home equity

390

388

Total consumer loans

390

388

Residential construction loans

2,757

2,141

Total individually evaluated loans with no related allowance

 

15,291

 

13,443

 

With an allowance:

 

  

 

  

 

  

SBA loans held for investment

 

1,383

 

1,258

 

348

Commercial loans

 

  

 

  

 

Commercial & industrial

 

638

 

283

 

283

Commercial real estate

 

209

 

58

 

58

Total commercial loans

 

847

 

341

 

341

Residential mortgage loans

4,182

4,151

306

Total individually evaluated loans with a related allowance

 

6,412

 

5,750

 

995

Total individually evaluated loans:

 

  

 

  

 

SBA loans held for investment

 

3,647

 

3,444

 

348

Commercial loans

 

  

 

  

 

Commercial & industrial

 

638

 

283

 

283

Commercial real estate

 

2,943

 

1,665

 

58

Total commercial loans

 

3,581

 

1,948

 

341

Residential mortgage loans

11,328

11,272

306

Consumer loans

Home equity

390

388

Total consumer loans

390

388

Residential construction loans

2,757

2,141

Total individually evaluated loans

$

21,703

$

19,193

$

995

    

December 31, 2022

    

Unpaid

    

    

Allowance for

principal

Recorded

Loan Losses

(In thousands)

balance

investment

Allocated

With no related allowance:

  

 

  

 

SBA loans held for investment

$

687

$

399

$

Commercial loans

 

  

 

  

 

Commercial & industrial

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 & industrial

 

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 impaired loans:

 

 

 

SBA loans held for investment

 

1,003

 

690

 

115

Commercial loans

 

 

 

Commercial & industrial

 

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 impaired loans

$

13,035

$

10,584

$

1,779

Schedule of Loan Classification Risk by Loan Portfolio Classification by Origination Year

Term Loans

Amortized Cost Basis by Origination Year

(In thousands)

2023

2022

2021

2020

2019

2018 and Earlier

Revolving Loans Amortized Cost Basis

Total

SBA loans held for investment

Risk Rating:

Pass

$

1,938

$

5,339

$

4,723

$

6,083

$

2,634

$

10,996

$

-

$

31,713

Special Mention

-

1,765

356

510

-

31

-

2,662

Substandard

-

1,256

2,186

190

-

577

-

4,209

Total SBA loans held for investment

$

1,938

$

8,360

$

7,265

$

6,783

$

2,634

$

11,604

$

-

$

38,584

SBA loans held for investment

Current-period gross writeoffs

$

-

$

100

$

-

$

-

$

113

$

-

$

-

$

213

SBA PPP loans

Risk Rating:

Pass

$

-

$

-

$

2,318

$

-

$

-

$

-

$

-

$

2,318

Total SBA PPP loans

$

-

$

-

$

2,318

$

-

$

-

$

-

$

-

$

2,318

Commercial loans

Risk Rating:

Pass

$

139,622

$

343,755

$

181,419

$

128,165

$

101,274

$

271,469

$

96,988

$

1,262,692

Special Mention

-

-

1,815

-

1,570

7,423

395

11,203

Substandard

-

-

59

14

288

3,204

-

3,565

Total commercial loans

$

139,622

$

343,755

$

183,293

$

128,179

$

103,132

$

282,096

$

97,383

$

1,277,460

Commercial loans

Current-period gross writeoffs

$

-

$

-

$

150

$

-

$

350

$

252

$

-

$

752

Residential mortgage loans

Risk Rating:

Performing

$

102,892

$

253,919

$

72,586

$

51,999

$

30,482

$

109,302

$

-

$

621,180

Nonperforming

-

2,964

2,714

1,054

945

2,649

-

10,326

Total residential mortgage loans

$

102,892

$

256,883

$

75,300

$

53,053

$

31,427

$

111,951

$

-

$

631,506

Residential mortgage loans

Current-period gross writeoffs

$

-

$

-

$

25

$

-

$

-

$

68

$

-

$

93

Consumer loans

Risk Rating:

Performing

$

3,428

$

4,777

$

3,681

$

670

$

2,481

$

7,507

$

49,751

$

72,295

Nonperforming

-

-

-

125

-

256

-

381

Total consumer loans

$

3,428

$

4,777

$

3,681

$

795

$

2,481

$

7,763

$

49,751

$

72,676

Consumer loans

Current-period gross writeoffs

$

-

$

26

$

552

$

-

$

-

$

-

$

-

$

578

Residential construction loans

Risk Rating:

Performing

$

28,827

$

72,257

$

25,395

$

1,418

$

491

$

748

$

-

$

129,136

Nonperforming

-

-

-

547

-

1,594

-

2,141

Total residential construction loans

$

28,827

$

72,257

$

25,395

$

1,965

$

491

$

2,342

$

-

$

131,277

Residential construction

Current-period gross writeoffs

$

-

$

-

$

-

$

-

$

-

$

600

$

400

$

1,000

Total loans held for investment

$

276,707

$

686,031

$

297,252

$

190,775

$

140,165

$

415,756

$

147,134

$

2,153,821

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 & industrial

 

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

Schedule of Amortized Cost Basis of Loans Modified, Disaggregated by Class of Gross Loans and Type of Concession Granted

Principal

Payment

Term

(In thousands)

Forgiveness

Delay

Extension

SBA loans held for investment

$

9

$

$

Commercial loans

Commercial & industrial

835

Commercial real estate

1,290

732

Consumer loans

Home equity

103

Balance, end of year

$

9

$

1,290

$

1,670

Schedule of Servicing Assets

    

For the years ended December 31, 

(In thousands)

    

2023

    

2022

Balance, beginning of year

$

691

$

1,013

Servicing assets capitalized

 

576

 

152

Amortization of expense, net

 

(386)

 

(474)

Balance, end of year

$

881

$

691

Schedule of Related Party Transactions

(In thousands)

    

December 31, 2023

    

December 31, 2022

Balance, beginning of year

$

8,124

$

11,502

New loans and advances

 

788

 

Loan repayments

 

(953)

 

(784)

Loans removed

(65)

(2,594)

Balance, end of year

$

7,894

$

8,124