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LOANS HELD FOR INVESTMENT (Tables)
 6 Months Ended
Jun. 30, 2021
LOANS HELD FOR INVESTMENT [Abstract]  
Composition of Loans Held for Investment Loan Portfolio
The composition of the Company’s loans held for investment loan portfolio follows:
   
June 30,
2021
    
December 31,
2020
  
   
(in thousands)
  
Manufactured housing
  
$
286,552
    
$
280,284
  
Commercial real estate
    
444,127
      
402,148
  
Commercial
    
49,243
      
57,933
  
SBA (1)
    
73,920
      
73,131
  
HELOC
    
3,685
      
3,861
  
Single family real estate
    
10,623
      
10,490
  
Consumer
    
40
      
133
  
     
868,190
      
827,980
  
Allowance for loan losses
    
(10,240
)
    
(10,194
)
Deferred fees, net
    
(2,133
)
    
(1,583
)
Discount on SBA loans
    
(40
)
    
(49
)
Total loans held for investment, net
  
$
855,777
    
$
816,154
  

(1)  Includes $71.1 million and $69.5 million of SBA Paycheck Protection Program (PPP) loans as of June 30, 2021 and December 31, 2020, respectively.
Contractual Aging of Recorded Investment in Past Due Held for Investment Loans by Class of Loans
The following table presents the contractual aging of the recorded investment in past due held for investment loans by class of loans:

   
June 30, 2021
 
   
Current
    
30-59 Days
Past Due
    
60-89 Days
Past Due
    
Over 90 Days
Past Due
    
Total
Past Due
    
Nonaccrual
    
Total
    
Recorded
Investment
Over 90 Days
and Accruing
  
   
(in thousands)
  
Manufactured housing
  
$
286,397
    
$
58
    
$
—
    
$
—
    
$
58
    
$
97
    
$
286,552
    
$
—
  
Commercial real estate:
                                                                
Commercial real estate
    
399,975
      
—
      
—
      
—
      
—
      
—
      
399,975
      
—
  
SBA 504 1st trust deed
    
21,130
      
—
      
—
      
—
      
—
      
1,386
      
22,516
      
—
  
Land
    
8,946
      
—
      
—
      
—
      
—
      
—
      
8,946
      
—
  
Construction
    
12,690
      
—
      
—
      
—
      
—
      
—
      
12,690
      
—
  
Commercial
    
49,243
      
—
      
—
      
—
      
—
      
—
      
49,243
      
—
  
SBA
    
73,735
      
—
      
38
      
—
      
38
      
147
      
73,920
      
—
  
HELOC
    
3,685
      
—
      
—
      
—
      
—
      
—
      
3,685
      
—
  
Single family real estate
    
10,347
      
—
      
—
      
—
      
—
      
276
      
10,623
      
—
  
Consumer
    
40
      
—
      
—
      
—
      
—
      
—
      
40
      
—
  
Total
  
$
866,188
    
$
58
    
$
38
    
$
—
    
$
96
    
$
1,906
    
$
868,190
    
$
—
  

   
December 31, 2020
 
   
Current
    
30-59 Days
Past Due
    
60-89 Days
Past Due
    
Over 90 Days
Past Due
    
Total
Past Due
    
Nonaccrual
    
Total
    
Recorded
Investment
Over 90 Days
and Accruing
  
   
(in thousands)
  
Manufactured housing
  
$
277,873
    
$
1,716
    
$
81
    
$
—
    
$
1,797
    
$
614
    
$
280,284
    
$
—
  
Commercial real estate:
                                                                
Commercial real estate
    
360,345
      
—
      
—
      
—
      
—
      
—
      
360,345
      
—
  
SBA 504 1st trust deed
    
16,423
      
—
      
—
      
—
      
—
      
1,469
      
17,892
      
—
  
Land
    
6,528
      
—
      
—
      
—
      
—
      
—
      
6,528
      
—
  
Construction
    
17,383
      
—
      
—
      
—
      
—
      
—
      
17,383
      
—
  
Commercial
    
56,451
      
92
      
—
      
—
      
92
      
1,390
      
57,933
      
—
  
SBA
    
72,856
      
—
      
—
      
—
      
—
      
275
      
73,131
      
—
  
HELOC
    
3,861
      
—
      
—
      
—
      
—
      
—
      
3,861
      
—
  
Single family real estate
    
10,366
      
—
      
—
      
—
      
—
      
124
      
10,490
      
—
  
Consumer
    
133
      
—
      
—
      
—
      
—
      
—
      
133
      
—
  
Total
  
$
822,219
    
$
1,808
    
$
81
    
$
—
    
$
1,889
    
$
3,872
    
$
827,980
    
$
—
  
Analysis of Allowance for Loan Losses for Loans Held for Investment
The following table summarizes the changes in the allowance for loan losses:
   
Three Months Ended June 30,
    
Six Months Ended June 30,
  
   
2021
    
2020
    
2021
    
2020
  
   
(in thousands)
    
(in thousands)
  
Beginning balance
  
$
10,233
    
$
9,167
    
$
10,194
    
$
8,717
  
Charge-offs
    
—
      
—
      
—
      
—
  
Recoveries
    
48
      
79
      
260
      
137
  
Net recoveries
    
48
      
79
      
260
      
137
  
Provision
    
(41
)
    
762
      
(214
)
    
1,154
  
Ending balance
  
$
10,240
    
$
10,008
    
$
10,240
    
$
10,008
  

As of June 30, 2021 and December 31, 2020, the Company had reserves for credit losses on undisbursed loans of $78,000 and $92,000, respectively, which were included in other liabilities.
The following tables summarize the changes in the allowance for loan losses by portfolio type:
   
For the Three Months Ended June 30,
  
   
Manufactured
Housing
    
Commercial
Real Estate
    
Commercial
    
SBA
    
HELOC
    
Single Family
Real Estate
    
Consumer
    
Total
  
2021
  
(in thousands)
  
Beginning balance
  
$
2,623
    
$
6,220
    
$
1,108
    
$
130
    
$
25
    
$
126
    
$
1
    
$
10,233
  
Charge-offs
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Recoveries
    
12
      
20
      
10
      
4
      
1
      
1
      
—
      
48
  
Net recoveries
    
12
      
20
      
10
      
4
      
1
      
1
      
—
      
48
  
Provision (credit)
    
(5
)
    
88
      
(98
)
    
(20
)
    
(1
)
    
(5
)
    
—
      
(41
)
Ending balance
  
$
2,630
    
$
6,328
    
$
1,020
    
$
114
    
$
25
    
$
122
    
$
1
    
$
10,240
  
                                                                 
2020
                                                                
Beginning balance
  
$
2,364
    
$
5,484
    
$
1,164
    
$
29
    
$
27
    
$
96
    
$
3
    
$
9,167
  
Charge-offs
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Recoveries
    
7
      
20
      
47
      
3
      
2
      
—
      
—
      
79
  
Net recoveries
    
7
      
20
      
47
      
3
      
2
      
—
      
—
      
79
  
Provision (credit)
    
99
      
255
      
292
      
96
      
(3
)
    
24
      
(1
)
    
762
  
Ending balance
  
$
2,470
    
$
5,759
    
$
1,503
    
$
128
    
$
26
    
$
120
    
$
2
    
$
10,008
  

   
For the Six Months Ended June 30,
  
   
Manufactured
Housing
    
Commercial
Real Estate
    
Commercial
    
SBA
    
HELOC
    
Single Family
Real Estate
    
Consumer
    
Total
  
2021
  
(in thousands)
  
Beginning balance
  
$
2,612
    
$
5,950
    
$
1,379
    
$
118
    
$
25
    
$
108
    
$
2
    
$
10,194
  
Charge-offs
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Recoveries
    
151
      
40
      
20
      
45
      
3
      
1
      
—
      
260
  
Net recoveries
    
151
      
40
      
20
      
45
      
3
      
1
      
—
      
260
  
Provision (credit)
    
(133
)
    
338
      
(379
)
    
(49
)
    
(3
)
    
13
      
(1
)
    
(214
)
Ending balance
  
$
2,630
    
$
6,328
    
$
1,020
    
$
114
    
$
25
    
$
122
    
$
1
    
$
10,240
  
                                                                 
2020
                                                                
Beginning balance
  
$
2,184
    
$
5,217
    
$
1,162
    
$
32
    
$
27
    
$
92
    
$
3
    
$
8,717
  
Charge-offs
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Recoveries
    
13
      
40
      
74
      
6
      
3
      
1
      
—
      
137
  
Net recoveries
    
13
      
40
      
74
      
6
      
3
      
1
      
—
      
137
  
Provision (credit)
    
273
      
502
      
267
      
90
      
(4
)
    
27
      
(1
)
    
1,154
  
Ending balance
  
$
2,470
    
$
5,759
    
$
1,503
    
$
128
    
$
26
    
$
120
    
$
2
    
$
10,008
  
Impairment Method Information Related to Loans and Allowance for Loan Losses by Loan Portfolio Segment
The following tables present impairment method information related to loans and allowance for loan losses by loan portfolio segment:
   
Manufactured
Housing
    
Commercial
Real Estate
    
Commercial
    
SBA
    
HELOC
    
Single Family
Real Estate
    
Consumer
    
Total
Loans
  
Loans Held for Investment as of June 30, 2021:
  
(in thousands)
  
Recorded Investment:
                                                
Impaired loans with an allowance recorded
  
$
4,043
    
$
225
    
$
93
    
$
—
    
$
—
    
$
437
    
$
—
    
$
4,798
  
Impaired loans with no allowance recorded
    
1,286
      
1,386
      
1,619
      
397
      
—
      
1,992
      
—
      
6,680
  
Total loans individually evaluated for impairment
    
5,329
      
1,611
      
1,712
      
397
      
—
      
2,429
      
—
      
11,478
  
Loans collectively evaluated for impairment
    
281,223
      
442,516
      
47,531
      
73,523
      
3,685
      
8,194
      
40
      
856,712
  
Total loans held for investment
  
$
286,552
    
$
444,127
    
$
49,243
    
$
73,920
    
$
3,685
    
$
10,623
    
$
40
    
$
868,190
  
Unpaid Principal Balance
                                                                
Impaired loans with an allowance recorded
  
$
4,043
    
$
225
    
$
93
    
$
—
    
$
—
    
$
437
    
$
—
    
$
4,798
  
Impaired loans with no allowance recorded
    
1,878
      
1,446
      
1,619
      
854
      
—
      
1,999
      
—
      
7,796
  
Total loans individually evaluated for impairment
    
5,921
      
1,671
      
1,712
      
854
      
—
      
2,436
      
—
      
12,594
  
Loans collectively evaluated for impairment
    
281,223
      
442,516
      
47,531
      
73,523
      
3,685
      
8,194
      
40
      
856,712
  
Total loans held for investment
  
$
287,144
    
$
444,187
    
$
49,243
    
$
74,377
    
$
3,685
    
$
10,630
    
$
40
    
$
869,306
  
Related Allowance for Credit Losses
                                                                
Impaired loans with an allowance recorded
  
$
246
    
$
16
    
$
—
    
$
—
    
$
—
    
$
13
    
$
—
    
$
275
  
Impaired loans with no allowance recorded
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Total loans individually evaluated for impairment
    
246
      
16
      
—
      
—
      
—
      
13
      
—
      
275
  
Loans collectively evaluated for impairment
    
2,384
      
6,312
      
1,020
      
114
      
25
      
109
      
1
      
9,965
  
Total loans held for investment
  
$
2,630
    
$
6,328
    
$
1,020
    
$
114
    
$
25
    
$
122
    
$
1
    
$
10,240
  

   
Manufactured
Housing
    
Commercial
Real Estate
    
Commercial
    
SBA
    
HELOC
    
Single Family
Real Estate
    
Consumer
    
Total
Loans
  
Loans Held for Investment as of December 31, 2020:
  
(in thousands)
  
Recorded Investment:
                                                
Impaired loans with an allowance recorded
  
$
4,402
    
$
230
    
$
—
    
$
—
    
$
—
    
$
449
    
$
—
    
$
5,081
  
Impaired loans with no allowance recorded
    
2,294
      
1,468
      
1,504
      
292
      
—
      
1,860
      
—
      
7,418
  
Total loans individually evaluated for impairment
    
6,696
      
1,698
      
1,504
      
292
      
—
      
2,309
      
—
      
12,499
  
Loans collectively evaluated for impairment
    
273,588
      
400,450
      
56,429
      
72,839
      
3,861
      
8,181
      
133
      
815,481
  
Total loans held for investment
  
$
280,284
    
$
402,148
    
$
57,933
    
$
73,131
    
$
3,861
    
$
10,490
    
$
133
    
$
827,980
  
Unpaid Principal Balance
                                                                
Impaired loans with an allowance recorded
  
$
4,402
    
$
230
    
$
—
    
$
—
    
$
—
    
$
449
    
$
—
    
$
5,081
  
Impaired loans with no allowance recorded
    
3,066
      
1,474
      
1,844
      
946
      
—
      
1,860
      
—
      
9,190
  
Total loans individually evaluated for impairment
    
7,468
      
1,704
      
1,844
      
946
      
—
      
2,309
      
—
      
14,271
  
Loans collectively evaluated for impairment
    
273,588
      
400,450
      
56,429
      
72,839
      
3,861
      
8,181
      
133
      
815,481
  
Total loans held for investment
  
$
281,056
    
$
402,154
    
$
58,273
    
$
73,785
    
$
3,861
    
$
10,490
    
$
133
    
$
829,752
  
Related Allowance for Credit Losses
                                                                
Impaired loans with an allowance recorded
  
$
279
    
$
16
    
$
—
    
$
—
    
$
—
    
$
16
    
$
—
    
$
311
  
Impaired loans with no allowance recorded
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Total loans individually evaluated for impairment
    
279
      
16
      
—
      
—
      
—
      
16
      
—
      
311
  
Loans collectively evaluated for impairment
    
2,333
      
5,934
      
1,379
      
118
      
25
      
92
      
2
      
9,883
  
Total loans held for investment
  
$
2,612
    
$
5,950
    
$
1,379
    
$
118
    
$
25
    
$
108
    
$
2
    
$
10,194
  
Recorded Investment in Loans Classified as Impaired
The table below reflects recorded investment in loans classified as impaired:
   
June 30,
2021
   
December 31,
2020
 
   
(in thousands)
  
Impaired loans with a specific valuation allowance under ASC 310
  
$
4,798
    
$
5,081
  
Impaired loans without a specific valuation allowance under ASC 310
    
6,680
      
7,418
  
Total impaired loans
  
$
11,478
    
$
12,499
  
Valuation allowance related to impaired loans
  
$
275
    
$
311
  
Impaired Loans by Class
The following table summarizes impaired loans by class of loans:
   
June 30,
2021
   
December 31,
2020
 
   
(in thousands)
  
Manufactured housing
  
$
5,329
    
$
6,696
  
Commercial real estate :
                
Commercial real estate
    
—
      
—
  
SBA 504 1st trust deed
    
1,611
      
1,698
  
Land
    
—
      
—
  
Construction
    
—
      
—
  
Commercial
    
1,712
      
1,504
  
SBA
    
397
      
292
  
HELOC
    
—
      
—
  
Single family real estate
    
2,429
      
2,309
  
Consumer
    
—
      
—
  
Total
  
$
11,478
    
$
12,499
  
Average Investment in Impaired Loans by Class and Related Interest Income Recognized
The following tables summarize average investment in impaired loans by class of loans and the related interest income recognized:
   
Three Months Ended June 30,
  
   
2021
   
2020
 
   
Average Investment
in Impaired Loans
    
Interest
Income
    
Average Investment
in Impaired Loans
    
Interest
Income
  
   
(in thousands)
  
Manufactured housing
  
$
5,648
    
$
69
    
$
7,660
    
$
131
  
Commercial real estate:
                                
Commercial real estate
    
—
      
—
      
84
      
—
  
SBA 504 1st trust deed
    
1,627
      
6
      
232
      
4
  
Land
    
—
      
—
      
—
      
—
  
Construction
    
—
      
—
      
—
      
—
  
Commercial
    
1,744
      
27
      
1,693
      
2
  
SBA
    
407
      
4
      
340
      
—
  
HELOC
    
—
      
—
      
—
      
—
  
Single family real estate
    
2,352
      
53
      
2,262
      
29
  
Consumer
    
—
      
—
      
—
      
—
  
Total
  
$
11,778
    
$
159
    
$
12,271
    
$
166
  

   
Six Months Ended June 30,
  
   
2021
   
2020
 
   
Average Investment
in Impaired Loans
    
Interest
Income
    
Average Investment
in Impaired Loans
    
Interest
Income
  
   
(in thousands)
  
Manufactured housing
  
$
5,985
    
$
182
    
$
7,790
    
$
266
  
Commercial real estate:
                                
Commercial real estate
    
—
      
—
      
84
      
—
  
SBA 504 1st trust deed
    
1,647
      
44
      
233
      
9
  
Land
    
—
      
—
      
—
      
—
  
Construction
    
—
      
—
      
—
      
—
  
Commercial
    
1,661
      
54
      
1,733
      
4
  
SBA
    
367
      
8
      
355
      
—
  
HELOC
    
—
      
—
      
—
      
—
  
Single family real estate
    
2,333
      
81
      
2,289
      
60
  
Consumer
    
—
      
—
      
—
      
—
  
Total
  
$
11,993
    
$
369
    
$
12,484
    
$
339
  
Recorded Investment in Certain Types of Loans
The following table reflects the recorded investment in certain types of loans at the periods indicated:
   
June 30,
2021
    
December 31,
2020
  
   
(in thousands)
  
Nonaccrual loans
  
$
1,906
    
$
3,872
  
Government guaranteed portion of loans included above
  
$
109
    
$
207
  
                 
Troubled debt restructured loans, gross
  
$
11,001
    
$
11,141
  
Loans 30 through 89 days past due with interest accruing
  
$
96
    
$
1,889
  
Loans 90 days or more past due with interest accruing
  
$
—
    
$
—
  
Allowance for loan losses to gross loans held for investment
    
1.18
%
    
1.23
%
Composition of Net Nonaccrual Loans
The following table presents the composition of nonaccrual loans by class of loans:
   
June 30,
2021
   
December 31,
2020
 
   
(in thousands)
  
Manufactured housing
  
$
97
    
$
614
  
Commercial real estate:
                
Commercial real estate
    
—
      
—
  
SBA 504 1st trust deed
    
1,386
      
1,469
  
Land
    
—
      
—
  
Construction
    
—
      
—
  
Commercial
    
—
      
1,390
  
SBA
    
147
      
275
  
HELOC
    
—
      
—
  
Single family real estate
    
276
      
124
  
Consumer
    
—
      
—
  
Total
  
$
1,906
    
$
3,872
  
Gross Loans by Risk Rating
The following tables present gross loans by risk rating:
   
June 30, 2021
 
   
Pass
    
Special Mention
    
Substandard
    
Doubtful
    
Total
  
   
(in thousands)
  
Manufactured housing
  
$
285,564
    
$
—
    
$
988
    
$
—
    
$
286,552
  
Commercial real estate:
                                        
Commercial real estate
    
380,639
      
5,079
      
12,947
      
—
      
398,665
  
SBA 504 1st trust deed
    
20,175
      
—
      
2,341
      
—
      
22,516
  
Land
    
8,946
      
—
      
—
      
—
      
8,946
  
Construction
    
12,690
      
—
      
—
      
—
      
12,690
  
Commercial
    
43,164
      
710
      
2,414
      
—
      
46,288
  
SBA
    
2,345
      
24
      
125
      
—
      
2,494
  
HELOC
    
3,685
      
—
      
—
      
—
      
3,685
  
Single family real estate
    
10,342
      
—
      
281
      
—
      
10,623
  
Consumer
    
40
      
—
      
—
      
—
      
40
  
Total, net
    
767,590
      
5,813
      
19,096
      
—
      
792,499
  
Government guarantee
    
73,736
      
—
      
1,955
      
—
      
75,691
  
Total
  
$
841,326
    
$
5,813
    
$
21,051
    
$
—
    
$
868,190
  

   
December 31, 2020
 
   
Pass
    
Special Mention
    
Substandard
    
Doubtful
    
Total
  
   
(in thousands)
  
Manufactured housing
  
$
278,826
    
$
—
    
$
1,458
    
$
—
    
$
280,284
  
Commercial real estate:
                                        
Commercial real estate
    
340,391
      
6,265
      
12,362
      
—
      
359,018
  
SBA 504 1st trust deed
    
14,877
      
—
      
3,015
      
—
      
17,892
  
Land
    
6,528
      
—
      
—
      
—
      
6,528
  
Construction
    
15,344
      
—
      
2,039
      
—
      
17,383
  
Commercial
    
48,776
      
823
      
3,419
      
—
      
53,018
  
SBA
    
2,554
      
34
      
263
       —      
2,851
  
HELOC
    
3,861
      
—
      
—
      
—
      
3,861
  
Single family real estate
    
10,361
      
—
      
129
      
—
      
10,490
  
Consumer
    
133
      
—
      
—
      
—
      
133
  
Total, net
    
721,651
      
7,122
      
22,685
    
$
—
      
751,458
  
Government guarantee
    
72,876
      
—
      
3,646
      
—
      
76,522
  
Total
  
$
794,527
    
$
7,122
    
$
26,331
    
$
—
    
$
827,980
  
Troubled Debt Restructurings
The following tables summarize the financial effects of TDR loans by loan class for the periods presented:
   
For the Three Months Ended June 30, 2021
  
   
Number
of Loans
    
Pre-
Modification
Recorded Investment
    
Post
Modification
Recorded Investment
    
Balance of
Loans with
Rate
Reduction
    
Balance of
Loans with
Term
Extension
    
Effect on
Allowance
for
Loan Losses
  
   
(dollars in thousands)
  
Manufactured housing
    
1
    
$
167
    
$
167
    
$
—
    
$
—
    
$
—
  
Total
    
1
    
$
167
    
$
167
    
$
—
    
$
—
    
$
—
  

There were no new TDR loans for the three months ended June 30, 2020.
   
For the Six Months Ended June 30, 2021
  
   
Number
of Loans
    
Pre-
Modification
Recorded Investment
    
Post
Modification
Recorded Investment
    
Balance of
Loans with
Rate
Reduction
    
Balance of
Loans with
Term
Extension
    
Effect on
Allowance
for
Loan Losses
  
   
(dollars in thousands)
  
Manufactured housing
    
1
    
$
167
    
$
167
    
$
—
    
$
—
    
$
—
  
Total
    
1
    
$
167
    
$
167
    
$
—
    
$
—
    
$
—
  

   
For the Six Months Ended June 30, 2020
  
   
Number
of Loans
    
Pre-
Modification
Recorded Investment
    
Post
Modification
Recorded Investment
    
Balance of
Loans with
Rate
Reduction
    
Balance of
Loans with
Term
Extension
    
Effect on
Allowance
for
Loan Losses
  
   
(dollars in thousands)
  
SBA
    
1
    
$
56
    
$
56
    
$
56
    
$
56
    
$
1
  
Total
    
1
    
$
56
    
$
56
    
$
56
    
$
56
    
$
1