LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

9 Months Ended

Sep. 30, 2020

The portfolios of loans receivable at September 30, 2020 and December 31, 2019, consist of the following:


	September 30, 2020		December 31, 2019
	Amount		Amount
	(Dollars in thousands)
Commercial and Industrial	$	126,508	$	36,777
Construction	263,874		231,095
Real Estate Mortgage:
Commercial – Owner Occupied	136,497		136,753
Commercial – Non-owner Occupied	301,034		298,204
Residential – 1 to 4 Family	650,894		636,891
Residential – Multifamily	84,819		68,258
Consumer	10,985		12,771
Total Loans	$	1,574,611	$	1,420,749

Age Analysis of Past Due Loans by Class

An age analysis of past due loans by class at September 30, 2020 and December 31, 2019 is as follows:


September 30, 2020	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days and Not Accruing		Total Past Due		Current		Total Loans		Loans > 90 Days and Accruing
	(Dollars in Thousands)
Commercial and Industrial	$	—	$	—	$	116	$	116	$	126,392	$	126,508	$	—
Construction	—		—		1,365		1,365		262,509		263,874		—
Real Estate Mortgage:
Commercial – Owner Occupied	—		—		5,554		5,554		130,943		136,497		—
Commercial – Non-owner Occupied	—		69		69		138		300,896		301,034		—
Residential – 1 to 4 Family	—		810		2,353		3,163		647,731		650,894		—
Residential – Multifamily	—		—		—		—		84,819		84,819		—
Consumer	—		55		—		55		10,930		10,985		—
Total Loans	$	—	$	934	$	9,457	$	10,391	$	1,564,220	$	1,574,611	$	—


December 31, 2019	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days and Not Accruing		Total Past Due		Current		Total Loans		Loans > 90 Days and Accruing
	(Dollars in thousands)
Commercial and Industrial	$	—	$	—	$	286	$	286	$	36,491	$	36,777	$	—
Construction	—		—		1,365		1,365		229,730		231,095		—
Real Estate Mortgage:
Commercial – Owner Occupied	—		1,722		2,702		4,424		132,329		136,753		—
Commercial – Non-owner Occupied	—		—		70		70		298,134		298,204		—
Residential – 1 to 4 Family	—		262		925		1,187		635,704		636,891		—
Residential – Multifamily	—		—		—		—		68,258		68,258		—
Consumer	—		—		—		—		12,771		12,771		—
Total Loans	$	—	$	1,984	$	5,348	$	7,332	$	1,413,417	$	1,420,749	$	—

Analysis of Allowance for Loan Losses

The following tables present the information regarding the allowance for loan and lease losses and associated loan data:


					Real Estate Mortgage
	Commercial and Industrial		Construction		Commercial Owner Occupied		Commercial Non-owner Occupied		Residential 1 to 4 Family		Residential Multifamily		Consumer		Total
Allowance for loan losses	(Dollars in thousands)
Three months ended September 30, 2020
June 30, 2020	$	987	$	3,660	$	2,414	$	6,181	$	10,766	$	1,058	$	162	$	25,228
Charge-offs	—		—		—		—		(54)		—		—		(54)
Recoveries	11		—		1		2		—		—		—		14
Provisions	(385)		1,284		421		648		(65)		511		(14)		2,400
Ending Balance at September 30, 2020	$	613	$	4,944	$	2,836	$	6,831	$	10,647	$	1,569	$	148	$	27,588

Allowance for loan losses
Nine months ended September 30, 2020
December 31, 2019	$	964	$	2,807	$	2,023	$	5,860	$	9,151	$	819	$	187	$	21,811
Charge-offs	—		—		—		—		(54)		—		—		(54)
Recoveries	18		—		9		8		—		—		—		35
Provisions	(369)		2,137		804		963		1,550		750		(39)		5,796
Ending Balance at September 30, 2020	$	613	$	4,944	$	2,836	$	6,831	$	10,647	$	1,569	$	148	$	27,588

Allowance for loan losses
Individually evaluated for impairment	$	78	$	334	$	257	$	377	$	61	$	—	$	—	$	1,107
Collectively evaluated for impairment	535		4,610		2,579		6,454		10,586		1,569		148		26,481
Ending Balance at September 30, 2020	$	613	$	4,944	$	2,836	$	6,831	$	10,647	$	1,569	$	148	$	27,588

Loans
Individually evaluated for impairment	$	116	$	4,990	$	7,447	$	10,187	$	2,855	$	—	$	—	$	25,595
Collectively evaluated for impairment	126,392		258,884		129,050		290,847		648,039		84,819		10,985		1,549,016
Ending Balance at September 30, 2020	$	126,508	$	263,874	$	136,497	$	301,034	$	650,894	$	84,819	$	10,985	$	1,574,611


					Real Estate Mortgage
	Commercial and Industrial		Construction		Commercial Owner Occupied		Commercial Non-owner Occupied		Residential 1 to 4 Family		Residential Multifamily		Consumer		Total
Allowance for loan losses	(Dollars in thousands)
Three months ended September 30, 2019
June 30, 2019	$	693	$	2,527	$	1,746	$	5,904	$	8,480	$	744	$	196	$	20,290
Charge-offs	—		—		—		—		(56)		—		—		(56)
Recoveries	2		—		5		3		2		—		—		12
Provisions	262		220		254		(228)		432		(35)		(5)		900
Ending Balance at September 30, 2019	$	957	$	2,747	$	2,005	$	5,679	$	8,858	$	709	$	191	$	21,146

Allowance for loan losses
Nine months ended September 30, 2019
December 31, 2018	$	718	$	1,694	$	2,062	$	5,853	$	7,917	$	621	$	210	$	19,075
Charge-offs	—		—		—		—		(56)		—		—		(56)
Recoveries	12		6		18		36		5		—		—		77
Provisions	227		1,047		(75)		(210)		992		88		(19)		2,050
Ending Balance at September 30, 2019	$	957	$	2,747	$	2,005	$	5,679	$	8,858	$	709	$	191	$	21,146

Allowance for loan losses
Individually evaluated for impairment	$	307	$	118	$	32	$	178	$	364	$	—	$	—	$	999
Collectively evaluated for impairment	650		2,629		1,973		5,501		8,494		709		191		20,147
Ending Balance at September 30, 2019	$	957	$	2,747	$	2,005	$	5,679	$	8,858	$	709	$	191	$	21,146

Loans
Individually evaluated for impairment	$	307	$	5,229	$	4,886	$	10,508	$	1,871	$	—	$	—	$	22,801
Collectively evaluated for impairment	34,671		223,316		130,349		289,538		603,403		59,080		13,084		1,353,441
Ending Balance at September 30, 2019	$	34,978	$	228,545	$	135,235	$	300,046	$	605,274	$	59,080	$	13,084	$	1,376,242

Impaired Loans

The following tables provide further detail on impaired loans and the associated ALLL at September 30, 2020 and December 31, 2019:


September 30, 2020	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Dollars in thousands)
With no related allowance recorded:
Commercial and Industrial	$	38	$	38	$	—
Construction	—		—		—
Real Estate Mortgage:
Commercial – Owner Occupied	2,854		2,854		—
Commercial – Non-owner Occupied	69		69		—
Residential – 1 to 4 Family	1,984		1,984		—
Residential – Multifamily	—		—		—
Consumer	—		—		—
	4,945		4,945		—
With an allowance recorded:
Commercial and Industrial	78		85		78
Construction	4,990		9,480		334
Real Estate Mortgage:
Commercial – Owner Occupied	4,593		4,593		257
Commercial – Non-owner Occupied	10,118		10,118		377
Residential – 1 to 4 Family	871		871		61
Residential – Multifamily	—		—		—
Consumer	—		—		—
	20,650		25,147		1,107
Total:
Commercial and Industrial	116		123		78
Construction	4,990		9,480		334
Real Estate Mortgage:
Commercial – Owner Occupied	7,447		7,447		257
Commercial – Non-owner Occupied	10,187		10,187		377
Residential – 1 to 4 Family	2,855		2,855		61
Residential – Multifamily	—		—		—
Consumer	—		—		—
	$	25,595	$	30,092	$	1,107


December 31, 2019	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Dollars in thousands)
With no related allowance recorded:
Commercial and Industrial	$	—	$	—	$	—
Construction	—		—		—
Real Estate Mortgage:
Commercial – Owner Occupied	2,702		2,702		—
Commercial – Non-owner Occupied	70		70		—
Residential – 1 to 4 Family	194		194		—
Residential – Multifamily	—		—		—
Consumer	—		—		—
	2,966		2,966		—
With an allowance recorded:
Commercial and Industrial	286		292		286
Construction	5,110		9,600		141
Real Estate Mortgage:
Commercial – Owner Occupied	2,131		2,131		33
Commercial – Non-owner Occupied	10,354		10,355		457
Residential – 1 to 4 Family	1,251		1,251		211
Residential – Multifamily	—		—		—
Consumer	—		—		—
	19,132		23,629		1,128
Total:
Commercial and Industrial	286		292		286
Construction	5,110		9,600		141
Real Estate Mortgage:
Commercial – Owner Occupied	4,833		4,833		33
Commercial – Non-owner Occupied	10,424		10,425		457
Residential – 1 to 4 Family	1,445		1,445		211
Residential – Multifamily	—		—		—
Consumer	—		—		—
	$	22,098	$	26,595	$	1,128

The following table presents by loan portfolio class, the average recorded investment and interest income recognized on impaired loans for the three and nine months ended September 30, 2020 and 2019:


	Three Months Ended September 30,
	2020				2019
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
Commercial and Industrial	$	221	$	1	$	160	$	10
Construction	4,990		40		5,290		43
Real Estate Mortgage:
Commercial – Owner Occupied	7,515		14		5,084		41
Commercial – Non-owner Occupied	10,240		158		11,742		112
Residential – 1 to 4 Family	2,994		33		2,260		13
Residential – Multifamily	—		—		—		—
Consumer	—		—		—		—
Total	$	25,960	$	246	$	24,536	$	219


	Nine Months Ended September 30,
	2020				2019
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
Commercial and Industrial	$	281	$	13	$	87	$	11
Construction	5,020		119		5,410		132
Real Estate Mortgage:
Commercial – Owner Occupied	6,167		95		3,737		107
Commercial – Non-owner Occupied	10,302		312		11,488		441
Residential – 1 to 4 Family	2,314		87		2,480		26
Residential – Multifamily	—		—		—		—
Consumer	—		—		—		—
Total	$	24,084	$	626	$	23,202	$	717

Analysis of Credit Risk Profile by Internally Assigned Grades

An analysis of the credit risk profile by internally assigned grades as of September 30, 2020 and December 31, 2019 is as follows:


At September 30, 2020	Pass		OAEM		Substandard		Doubtful		Total
	(Dollars in thousands)
Commercial and Industrial	$	126,181	$	211	$	116	$	—	$	126,508
Construction	262,509		—		1,365		—		263,874
Real Estate Mortgage:
Commercial – Owner Occupied	130,943		—		5,554		—		136,497
Commercial – Non-owner Occupied	300,841		—		193		—		301,034
Residential – 1 to 4 Family	647,624		810		2,460		—		650,894
Residential – Multifamily	84,819		—		—		—		84,819
Consumer	10,985		—		—		—		10,985
Total	$	1,563,902	$	1,021	$	9,688	$	—	$	1,574,611


At December 31, 2019	Pass		OAEM		Substandard		Doubtful		Total
	(Dollars in thousands)
Commercial and Industrial	$	36,491	$	—	$	286	$	—	$	36,777
Construction	219,289		4,275		7,531		—		231,095
Real Estate Mortgage:
Commercial – Owner Occupied	134,051		—		2,702		—		136,753
Commercial – Non-owner Occupied	298,006		—		198		—		298,204
Residential – 1 to 4 Family	634,937		920		1,034		—		636,891
Residential – Multifamily	68,258		—		—		—		68,258
Consumer	12,771		—		—		—		12,771
Total	$	1,403,803	$	5,195	$	11,751	$	—	$	1,420,749