Loans

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Loans

LOANS

Loans held for investment, at amortized cost, at December 31, 2021 and December 31, 2020 were as follows:

	December 31, 2021		December 31, 2020
Real estate:
Residential	$	87,235	$	64,724
Commercial	163,477		114,884
Construction and land	18,632		15,113
Commercial and industrial	217,155		193,927
Commercial and industrial - PPP	80,158		838,847
Consumer and other	3,581		2,896
Loans held for investment, at amortized cost, gross	570,238		1,230,391
Deferred loan costs (fees), net	7,975		(5,819)
Discount on SBA 7(a) loans sold(1)	(3,866)		(5,417)
Discount on PPP loans purchased	(13)		(97)
Allowance for loan losses	(13,452)		(21,162)
Loans held for investment, at amortized cost	$	560,882	$	1,197,896

(1) The Company allocates the retained portion of loans sold based on relative fair value of the retained portion and the sold portion, which results in a discount on the retained portion.

Commercial and industrial – PPP which consists of loans originated under the CARES Act’s economic relief program and carry a 100% government guarantee. During the year ended December 31, 2021, the Company originated $329,315 and sold $326,318 in PPP loans. During the year ended December 31, 2020, the Company originated $876,603 and purchased $22,404 in PPP loans. The sale of the PPP loans resulted in a $13,817 gain from the sale in the second quarter of 2021.