XML 17 R26.htm IDEA: XBRL DOCUMENT v3.19.3
Loans (Tables)
 9 Months Ended
Sep. 30, 2019
Receivables [Abstract]  
Composition of Loan Portfolio

The composition of the loan portfolio was as follows at September 30, 2019 and December 31, 2018:

 

 

 

 

 

 

 

September 30, 2019

 

 

December 31, 2018

 

 

 

 

 

 

 

(Dollars in thousands)

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

 

 

 

$

594,447

 

 

$

503,834

 

SBA loans—real estate

 

 

 

 

 

 

124,963

 

 

 

117,834

 

Total real estate

 

 

 

 

 

 

719,410

 

 

 

621,668

 

SBA loans—non-real estate

 

 

 

 

 

 

11,269

 

 

 

9,541

 

Commercial and industrial

 

 

 

 

 

 

107,730

 

 

 

113,975

 

Home mortgage

 

 

 

 

 

 

123,092

 

 

 

127,298

 

Consumer

 

 

 

 

 

 

2,869

 

 

 

2,577

 

Gross loans receivable

 

 

 

 

 

 

964,370

 

 

 

875,059

 

Allowance for loan losses

 

 

 

 

 

 

(9,640

)

 

 

(9,636

)

Loans receivable, net

 

 

 

 

 

$

954,730

 

 

$

865,423

 

 
Schedule of Activity in Allowance for Loan Losses

The activity in the allowance for loan losses for the three and nine months ended September 30, 2019 and 2018 was as follows:

 

 

 

 

 

 

 

 

 

 

SBA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

SBA Loans

 

 

Loans Non-

 

 

Commercial

 

 

Home

 

 

 

 

 

 

 

 

 

 

Real Estate

 

 

Real Estate

 

 

Real Estate

 

 

and Industrial

 

 

Mortgage

 

 

Consumer

 

 

Total

 

 

(Dollars in thousands)

 

Three months ended September

   30, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

$

5,554

 

 

$

933

 

 

$

119

 

 

$

1,266

 

 

$

1,609

 

 

$

44

 

 

$

9,525

 

Provision for loan losses

 

102

 

 

 

—

 

 

 

(2

)

 

 

171

 

 

 

26

 

 

 

(7

)

 

 

290

 

Charge-offs

 

—

 

 

 

—

 

 

 

—

 

 

 

(175

)

 

 

—

 

 

 

—

 

 

 

(175

)

Recoveries

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Ending balance

$

5,656

 

 

$

933

 

 

$

117

 

 

$

1,262

 

 

$

1,635

 

 

$

37

 

 

$

9,640

 

Three months ended September

   30, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

$

4,804

 

 

$

978

 

 

$

536

 

 

$

1,877

 

 

$

1,489

 

 

$

39

 

 

$

9,723

 

Provision for loan losses

 

271

 

 

 

30

 

 

 

89

 

 

 

43

 

 

 

12

 

 

 

(6

)

 

 

439

 

Charge-offs

 

—

 

 

 

—

 

 

 

(57

)

 

 

(565

)

 

 

—

 

 

 

—

 

 

 

(622

)

Recoveries

 

—

 

 

 

—

 

 

 

6

 

 

 

5

 

 

 

—

 

 

 

—

 

 

 

11

 

Ending balance

$

5,075

 

 

$

1,008

 

 

$

574

 

 

$

1,360

 

 

$

1,501

 

 

$

33

 

 

$

9,551

 

 

 

 

 

 

 

 

 

 

 

SBA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

SBA Loans

 

 

Loans Non-

 

 

Commercial

 

 

Home

 

 

 

 

 

 

 

 

 

 

Real Estate

 

 

Real Estate

 

 

Real Estate

 

 

and Industrial

 

 

Mortgage

 

 

Consumer

 

 

Total

 

 

(Dollars in thousands)

 

Nine months ended September

   30, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

$

4,805

 

 

$

894

 

 

$

505

 

 

$

1,746

 

 

$

1,653

 

 

$

33

 

 

$

9,636

 

Provision for loan losses

 

851

 

 

 

59

 

 

 

(388

)

 

 

184

 

 

 

(18

)

 

 

3

 

 

 

691

 

Charge-offs

 

—

 

 

 

(20

)

 

 

—

 

 

 

(668

)

 

 

—

 

 

 

—

 

 

 

(688

)

Recoveries

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

Ending balance

$

5,656

 

 

$

933

 

 

$

117

 

 

$

1,262

 

 

$

1,635

 

 

$

37

 

 

$

9,640

 

Nine months ended September

    30, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

$

4,801

 

 

$

1,082

 

 

$

538

 

 

$

1,265

 

 

$

1,408

 

 

$

45

 

 

$

9,139

 

Provision for loan losses

 

274

 

 

 

(74

)

 

 

112

 

 

 

654

 

 

 

93

 

 

 

(12

)

 

 

1,047

 

Charge-offs

 

—

 

 

 

—

 

 

 

(85

)

 

 

(565

)

 

 

—

 

 

 

—

 

 

 

(650

)

Recoveries

 

—

 

 

 

—

 

 

 

9

 

 

 

6

 

 

 

—

 

 

 

—

 

 

 

15

 

Ending balance

$

5,075

 

 

$

1,008

 

 

$

574

 

 

$

1,360

 

 

$

1,501

 

 

$

33

 

 

$

9,551

 

 
Schedule of Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment as of September 30, 2019 and December 31, 2018:

 

 

 

Loans

Individually

Evaluated

for Impairment

 

 

Loans

Collectively

Evaluated

for Impairment

 

 

Total

 

As of September 30, 2019:

 

(Dollars in thousands)

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

—

 

 

$

5,656

 

 

$

5,656

 

SBA loans—real estate

 

 

—

 

 

 

933

 

 

 

933

 

SBA loans—non-real estate

 

 

—

 

 

 

117

 

 

 

117

 

Commercial and industrial

 

 

336

 

 

 

926

 

 

 

1,262

 

Home mortgage

 

 

—

 

 

 

1,635

 

 

 

1,635

 

Consumer

 

 

—

 

 

 

37

 

 

 

37

 

Total

 

$

336

 

 

$

9,304

 

 

$

9,640

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

—

 

 

$

595,903

 

 

$

595,903

 

SBA loans—real estate

 

 

488

 

 

 

125,085

 

 

 

125,573

 

SBA loans—non-real estate

 

 

36

 

 

 

11,295

 

 

 

11,331

 

Commercial and industrial

 

 

336

 

 

 

107,646

 

 

 

107,982

 

Home mortgage

 

 

—

 

 

 

123,581

 

 

 

123,581

 

Consumer

 

 

—

 

 

 

2,875

 

 

 

2,875

 

Total

 

$

860

 

 

$

966,385

 

 

$

967,245

 

As of December 31, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

—

 

 

$

4,805

 

 

$

4,805

 

SBA loans—real estate

 

 

—

 

 

 

894

 

 

 

894

 

SBA loans—non-real estate

 

 

362

 

 

 

143

 

 

 

505

 

Commercial and industrial

 

 

836

 

 

 

910

 

 

 

1,746

 

Home mortgage

 

 

—

 

 

 

1,653

 

 

 

1,653

 

Consumer

 

 

—

 

 

 

33

 

 

 

33

 

Total

 

$

1,198

 

 

$

8,438

 

 

$

9,636

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

—

 

 

$

505,229

 

 

$

505,229

 

SBA loans—real estate

 

 

834

 

 

 

117,159

 

 

 

117,993

 

SBA loans—non-real estate

 

 

57

 

 

 

9,875

 

 

 

9,932

 

Commercial and industrial

 

 

1,516

 

 

 

112,781

 

 

 

114,297

 

Home mortgage

 

 

—

 

 

 

127,806

 

 

 

127,806

 

Consumer

 

 

—

 

 

 

2,586

 

 

 

2,586

 

Total

 

$

2,407

 

 

$

875,436

 

 

$

877,843

 
Schedule of Information Related to Impaired Loans by Class of Loans

 

The following table presents information related to impaired loans by class of loans as of and for the three and nine months ended September 30, 2019 and 2018. The difference between the unpaid principal balance (net of partial charge-offs) and the recorded investment in the loans is not considered to be material. The difference between interest income recognized and cash basis interest recognized was immaterial.

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

Interest

 

 

 

Recorded

 

 

Allowance

 

 

Recorded

 

 

Income

 

 

 

Investment

 

 

Allocated

 

 

Investment

 

 

Recognized

 

As of and for the three months ended September 30, 2019:

 

(Dollars in thousands)

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans—real estate

 

$

488

 

 

$

—

 

 

$

493

 

 

$

—

 

SBA loans—non-real estate

 

 

36

 

 

 

—

 

 

 

28

 

 

 

—

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

336

 

 

 

336

 

 

 

337

 

 

 

5

 

Total

 

$

860

 

 

$

336

 

 

$

858

 

 

$

5

 

As of and for the three months ended September 30, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans—real estate

 

$

134

 

 

$

—

 

 

$

138

 

 

$

—

 

Commercial and industrial

 

 

748

 

 

 

—

 

 

 

749

 

 

 

11

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans—non-real estate

 

 

434

 

 

 

434

 

 

 

434

 

 

 

—

 

Commercial and industrial

 

 

345

 

 

 

345

 

 

 

348

 

 

 

5

 

Total

 

$

1,661

 

 

$

779

 

 

$

1,669

 

 

$

16

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

Interest

 

 

 

Recorded

 

 

Allowance

 

 

Recorded

 

 

Income

 

 

 

Investment

 

 

Allocated

 

 

Investment

 

 

Recognized

 

As of and for the nine months ended September 30, 2019:

 

(Dollars in thousands)

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans—real estate

 

$

488

 

 

$

—

 

 

$

505

 

 

$

—

 

SBA loans—non-real estate

 

 

36

 

 

 

—

 

 

 

46

 

 

 

—

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

336

 

 

 

336

 

 

 

339

 

 

 

15

 

Total

 

$

860

 

 

$

336

 

 

$

890

 

 

$

15

 

As of and for the nine months ended September 30, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home mortgage

 

$

134

 

 

$

—

 

 

$

137

 

 

$

—

 

Consumer

 

 

748

 

 

 

—

 

 

 

749

 

 

 

33

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans—non-real estate

 

 

434

 

 

 

434

 

 

 

443

 

 

 

—

 

Commercial and industrial

 

 

345

 

 

 

345

 

 

 

350

 

 

 

14

 

Total

 

$

1,661

 

 

$

779

 

 

$

1,679

 

 

$

47

 
Schedule of Recorded Investment in Nonaccrual Loans and Loans Past Due Greater Than 90 Days Still Accruing Interest by Class of Loans

The following table presents the recorded investment in nonaccrual loans and loans past due greater than 90 days still accruing interest, by class of loans, as of September 30, 2019 and December 31, 2018:

 

 

 

Nonaccrual

 

 

Loans >90 Days

Past Due & Still

Accruing

 

 

Total

 

As of September 30, 2019:

 

(Dollars in thousands)

 

SBA loans—real estate

 

$

488

 

 

$

—

 

 

$

488

 

SBA loans—non-real estate

 

 

36

 

 

 

—

 

 

 

36

 

Commercial and industrial

 

 

710

 

 

 

—

 

 

 

710

 

Total

 

$

1,234

 

 

$

—

 

 

$

1,234

 

As of December 31, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans—real estate

 

$

834

 

 

$

—

 

 

$

834

 

SBA loans—non-real estate

 

 

57

 

 

 

—

 

 

 

57

 

Commercial and industrial

 

 

680

 

 

 

—

 

 

 

680

 

Total

 

$

1,571

 

 

$

—

 

 

$

1,571

 
Schedule of Aging of Recorded Investment in Past Due Loans

The following table represents the aging of the recorded investment in past due loans as of September 30, 2019 and December 31, 2018:

 

 

 

30-59 Days

Past Due

 

 

60-89 Days

Past Due

 

 

> 90 Days

Past Due

 

 

Total

Past Due

 

 

Loans Not

Past Due

 

 

Total

 

As of September 30, 2019:

 

(Dollars in thousands)

 

Commercial real estate

 

$

472

 

 

$

—

 

 

$

—

 

 

$

472

 

 

$

595,431

 

 

$

595,903

 

SBA—real estate

 

 

1,293

 

 

 

580

 

 

 

—

 

 

 

1,873

 

 

 

123,700

 

 

 

125,573

 

SBA—non-real estate

 

 

3

 

 

 

—

 

 

 

—

 

 

 

3

 

 

 

11,328

 

 

 

11,331

 

Commercial and industrial

 

 

374

 

 

 

—

 

 

 

—

 

 

 

374

 

 

 

107,608

 

 

 

107,982

 

Home mortgage

 

 

437

 

 

 

—

 

 

 

710

 

 

 

1,147

 

 

 

122,434

 

 

 

123,581

 

Consumer

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,875

 

 

 

2,875

 

 

 

$

2,579

 

 

$

580

 

 

$

710

 

 

$

3,869

 

 

$

963,376

 

 

$

967,245

 

As of December 31, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

505,229

 

 

$

505,229

 

SBA—real estate

 

 

—

 

 

 

—

 

 

 

311

 

 

 

311

 

 

 

117,682

 

 

 

117,993

 

SBA—non-real estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

9,932

 

 

 

9,932

 

Commercial and industrial

 

 

—

 

 

 

—

 

 

 

680

 

 

 

680

 

 

 

113,617

 

 

 

114,297

 

Home mortgage

 

 

449

 

 

 

—

 

 

 

—

 

 

 

449

 

 

 

127,357

 

 

 

127,806

 

Consumer

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,586

 

 

 

2,586

 

 

 

$

449

 

 

$

—

 

 

$

991

 

 

$

1,440

 

 

$

876,403

 

 

$

877,843

 
Schedule of Risk Category of Loans by Class of Loans

As of September 30, 2019 and December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

 

 

 

Pass

 

 

Special

Mention

 

 

Substandard

 

 

Doubtful

 

 

Total

 

As of September 30, 2019:

 

(Dollars in thousands)

 

Commercial real estate

 

$

595,903

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

595,903

 

SBA loans—real estate

 

 

122,553

 

 

 

773

 

 

 

2,247

 

 

 

—

 

 

 

125,573

 

SBA loans—non-real estate

 

 

11,281

 

 

 

14

 

 

 

36

 

 

 

—

 

 

 

11,331

 

Commercial and industrial

 

 

106,379

 

 

 

893

 

 

 

710

 

 

 

—

 

 

 

107,982

 

Home mortgage

 

 

123,325

 

 

 

—

 

 

 

256

 

 

 

—

 

 

 

123,581

 

Consumer

 

 

2,875

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,875

 

 

 

$

962,316

 

 

$

1,680

 

 

$

3,249

 

 

$

—

 

 

$

967,245

 

As of December 31, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

505,229

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

505,229

 

SBA loans—real estate

 

 

115,993

 

 

 

—

 

 

 

2,000

 

 

 

—

 

 

 

117,993

 

SBA loans—non-real estate

 

 

9,859

 

 

 

16

 

 

 

57

 

 

 

—

 

 

 

9,932

 

Commercial and industrial

 

 

112,781

 

 

 

—

 

 

 

1,516

 

 

 

—

 

 

 

114,297

 

Home mortgage

 

 

127,806

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

127,806

 

Consumer

 

 

2,586

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,586

 

 

 

$

874,254

 

 

$

16

 

 

$

3,573

 

 

$

—

 

 

$

877,843