Loans (Tables)
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12 Months Ended |
Dec. 31, 2023 |
Loans |
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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 |
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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 | | | | | | | | | | | | | | | 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 | | $ | 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 | | | | | | | | | | | | | | | 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 | | $ | — | | $ | 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. |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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