XML 42 R29.htm IDEA: XBRL DOCUMENT v3.20.4
Loans (Tables)
 12 Months Ended
Dec. 31, 2020
Receivables [Abstract]  
Composition of Loan Portfolio

The composition of the loan portfolio was as follows at December 31, 2020 and December 31, 2019:

 

 

 

December 31, 2020

 

 

December 31, 2019

 

 

 

(Dollars in thousands)

 

Real estate:

 

 

 

 

 

 

 

 

Commercial real estate

 

$

651,684

 

 

$

630,668

 

SBA loans—real estate

 

 

136,224

 

 

 

122,373

 

Total real estate

 

 

787,908

 

 

 

753,041

 

SBA loans—non-real estate

 

 

75,151

 

 

 

9,895

 

Commercial and industrial

 

 

107,307

 

 

 

103,852

 

Home mortgage

 

 

128,212

 

 

 

120,686

 

Consumer

 

 

1,158

 

 

 

2,664

 

Gross loans receivable

 

 

1,099,736

 

 

 

990,138

 

Allowance for loan losses

 

 

(15,352

)

 

 

(10,050

)

Loans receivable, net

 

$

1,084,384

 

 

$

980,088

 

 
Schedule of Activity in Allowance for Loan Losses

The activity in the allowance for loan losses for the years ended December 31, 2020, 2019, and 2018 was as follows:

 

 

 

 

 

 

 

 

 

 

 

SBA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

Real Estate

 

 

SBA Loans

Real Estate

 

 

Loans Non-

Real Estate

 

 

Commercial

and Industrial

 

 

Home

Mortgage

 

 

Consumer

 

 

Total

 

 

 

(Dollars in thousands)

 

Balance at January 1, 2018

 

$

4,801

 

 

$

1,082

 

 

$

538

 

 

$

1,265

 

 

$

1,408

 

 

$

45

 

 

$

9,139

 

Provision for loan losses

 

 

4

 

 

 

(188

)

 

 

103

 

 

 

1,115

 

 

 

245

 

 

 

(12

)

 

 

1,267

 

Charge-offs

 

 

—

 

 

 

—

 

 

 

(153

)

 

 

(634

)

 

 

—

 

 

 

—

 

 

 

(787

)

Recoveries

 

 

—

 

 

 

—

 

 

 

17

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

17

 

Balance at December 31, 2018

 

$

4,805

 

 

$

894

 

 

$

505

 

 

$

1,746

 

 

$

1,653

 

 

$

33

 

 

$

9,636

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

1,195

 

 

 

734

 

 

 

(384

)

 

 

(457

)

 

 

14

 

 

 

—

 

 

 

1,102

 

Charge-offs

 

 

—

 

 

 

(689

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(689

)

Recoveries

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

Balance at December 31, 2019

 

$

6,000

 

 

$

939

 

 

$

121

 

 

$

1,289

 

 

$

1,667

 

 

$

34

 

 

$

10,050

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses (1)

 

 

2,505

 

 

 

863

 

 

 

174

 

 

 

1,274

 

 

 

518

 

 

 

(16

)

 

 

5,318

 

Charge-offs

 

 

—

 

 

 

—

 

 

 

(45

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(45

)

Recoveries

 

 

—

 

 

 

—

 

 

 

28

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

29

 

Balance at December 31, 2020

 

$

8,505

 

 

$

1,802

 

 

$

278

 

 

$

2,563

 

 

$

2,185

 

 

$

19

 

 

$

15,352

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Loan loss provision for the year ended December 31, 2020, reported on income statement is $6.0 million. The difference of $643,000 is allocated to allowance on accrued interest receivable on loan deferrals or loan modification.

 

 

 

 
Schedule of Allowance for Loan Losses and Recorded Investment in Loans (including accrued interest receivable) by Portfolio Segment

The following table presents the balance in the allowance for loan losses and the recorded investment in loans (including accrued interest receivable of $4.4 million and $2.9 million as of December 31, 2020 and 2019, respectively) by portfolio segment at December 31, 2020 and December 31, 2019:

 

 

 

Loans

Individually

Evaluated

for Impairment

 

 

Loans

Collectively

Evaluated

for Impairment

 

 

Total

 

 

 

(Dollars in thousands)

 

As of December 31, 2020:

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

—

 

 

$

8,505

 

 

$

8,505

 

SBA loans—real estate

 

 

—

 

 

 

1,802

 

 

 

1,802

 

SBA loans—non-real estate

 

 

87

 

 

 

191

 

 

 

278

 

Commercial and industrial

 

 

330

 

 

 

2,233

 

 

 

2,563

 

Home mortgage

 

 

—

 

 

 

2,185

 

 

 

2,185

 

Consumer

 

 

—

 

 

 

19

 

 

 

19

 

Total

 

$

417

 

 

$

14,935

 

 

$

15,352

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

—

 

 

$

654,235

 

 

$

654,235

 

SBA loans—real estate

 

 

—

 

 

 

136,873

 

 

 

136,873

 

SBA loans—non-real estate

 

 

174

 

 

 

75,477

 

 

 

75,651

 

Commercial and industrial

 

 

330

 

 

 

107,175

 

 

 

107,505

 

Home mortgage

 

 

—

 

 

 

128,683

 

 

 

128,683

 

Consumer

 

 

—

 

 

 

1,161

 

 

 

1,161

 

Total

 

$

504

 

 

$

1,103,604

 

 

$

1,104,108

 

As of December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

—

 

 

$

6,000

 

 

$

6,000

 

SBA loans—real estate

 

 

—

 

 

 

939

 

 

 

939

 

SBA loans—non-real estate

 

 

—

 

 

 

121

 

 

 

121

 

Commercial and industrial

 

 

333

 

 

 

956

 

 

 

1,289

 

Home mortgage

 

 

—

 

 

 

1,667

 

 

 

1,667

 

Consumer

 

 

—

 

 

 

34

 

 

 

34

 

Total

 

$

333

 

 

$

9,717

 

 

$

10,050

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

—

 

 

$

632,205

 

 

$

632,205

 

SBA loans—real estate

 

 

484

 

 

 

122,438

 

 

 

122,922

 

SBA loans—non-real estate

 

 

33

 

 

 

9,921

 

 

 

9,954

 

Commercial and industrial

 

 

333

 

 

 

103,774

 

 

 

104,107

 

Home mortgage

 

 

—

 

 

 

121,161

 

 

 

121,161

 

Consumer

 

 

—

 

 

 

2,671

 

 

 

2,671

 

Total

 

$

850

 

 

$

992,170

 

 

$

993,020

 

 

 
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 years ended December 31, 2020, 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

 

 

 

(Dollars in thousands)

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans—non-real estate

 

$

174

 

 

$

87

 

 

$

182

 

 

$

41

 

Commercial and industrial

 

 

330

 

 

 

330

 

 

 

331

 

 

 

14

 

Total

 

$

504

 

 

$

417

 

 

$

513

 

 

$

55

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans—real estate

 

$

484

 

 

$

—

 

 

$

503

 

 

$

—

 

SBA loans—non-real estate

 

 

33

 

 

 

—

 

 

 

45

 

 

 

—

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

333

 

 

 

333

 

 

 

338

 

 

 

20

 

Total

 

$

850

 

 

$

333

 

 

$

886

 

 

$

20

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans—real estate

 

$

834

 

 

$

—

 

 

$

473

 

 

$

—

 

SBA loans—non-real estate

 

 

57

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial and industrial

 

 

680

 

 

 

—

 

 

 

715

 

 

 

—

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans—non-real estate

 

 

—

 

 

 

362

 

 

 

14

 

 

 

—

 

Commercial and industrial

 

 

836

 

 

 

836

 

 

 

841

 

 

 

49

 

Total

 

$

2,407

 

 

$

1,198

 

 

$

2,043

 

 

$

49

 

 
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 at December 31, 2020 and December 31, 2019:

 

 

 

Nonaccrual

 

 

Loans >90

Days

Past Due &

Still Accruing

 

 

Total

 

 

 

(Dollars in thousands)

 

As of December 31, 2020:

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans—non-real estate

 

$

56

 

 

$

—

 

 

$

56

 

Commercial and industrial

 

 

330

 

 

 

—

 

 

 

330

 

Home mortgage

 

 

599

 

 

 

—

 

 

 

599

 

Total

 

$

985

 

 

$

—

 

 

$

985

 

As of December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans—real estate

 

$

484

 

 

$

—

 

 

$

484

 

SBA loans—non-real estate

 

 

33

 

 

 

—

 

 

 

33

 

Home mortgage

 

 

698

 

 

 

—

 

 

 

698

 

Total

 

$

1,215

 

 

$

—

 

 

$

1,215

 

 
Schedule of Aging of Recorded Investment in Past Due Loans

The following table represents the aging of the recorded investment in past due loans at December 31, 2020 and December 31, 2019:

 

 

 

30-59

Days

Past Due

 

 

60-89

Days

Past Due

 

 

> 90 Days

Past Due

 

 

Total

Past Due

 

 

Loans Not

Past Due

 

 

Total

 

 

 

(Dollars in thousands)

 

As of December 31, 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

654,235

 

 

$

654,235

 

SBA—real estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

136,873

 

 

 

136,873

 

SBA—non-real estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

75,651

 

 

 

75,651

 

Commercial and industrial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

107,505

 

 

 

107,505

 

Home mortgage

 

 

—

 

 

 

—

 

 

 

599

 

 

 

599

 

 

 

128,084

 

 

 

128,683

 

Consumer

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,161

 

 

 

1,161

 

 

 

$

—

 

 

$

—

 

 

$

599

 

 

$

599

 

 

$

1,103,509

 

 

$

1,104,108

 

As of December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

632,205

 

 

$

632,205

 

SBA—real estate

 

 

1,552

 

 

 

—

 

 

 

484

 

 

 

2,036

 

 

 

120,886

 

 

 

122,922

 

SBA—non-real estate

 

 

3

 

 

 

126

 

 

 

33

 

 

 

162

 

 

 

9,792

 

 

 

9,954

 

Commercial and industrial

 

 

364

 

 

 

—

 

 

 

—

 

 

 

364

 

 

 

103,743

 

 

 

104,107

 

Home mortgage

 

 

1,980

 

 

 

—

 

 

 

454

 

 

 

2,434

 

 

 

118,727

 

 

 

121,161

 

Consumer

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,671

 

 

 

2,671

 

 

 

$

3,899

 

 

$

126

 

 

$

971

 

 

$

4,996

 

 

$

988,024

 

 

$

993,020

 

 
Schedule of Risk Category of Loans by Class of Loans

As of December 31, 2020 and December 31, 2019, 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

 

 

 

(Dollars in thousands)

 

As of December 31, 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

654,235

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

654,235

 

SBA loans—real estate

 

 

134,815

 

 

 

535

 

 

 

1,523

 

 

 

—

 

 

 

136,873

 

SBA loans—non-real estate

 

 

75,453

 

 

 

—

 

 

 

198

 

 

 

—

 

 

 

75,651

 

Commercial and industrial

 

 

102,500

 

 

 

—

 

 

 

5,005

 

 

 

—

 

 

 

107,505

 

Home mortgage

 

 

128,084

 

 

 

—

 

 

 

599

 

 

 

—

 

 

 

128,683

 

Consumer

 

 

1,161

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,161

 

 

 

$

1,096,248

 

 

$

535

 

 

$

7,325

 

 

$

—

 

 

$

1,104,108

 

As of December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

632,205

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

632,205

 

SBA loans—real estate

 

 

120,116

 

 

 

770

 

 

 

2,036

 

 

 

—

 

 

 

122,922

 

SBA loans—non-real estate

 

 

9,781

 

 

 

140

 

 

 

33

 

 

 

—

 

 

 

9,954

 

Commercial and industrial

 

 

98,509

 

 

 

4,901

 

 

 

697

 

 

 

—

 

 

 

104,107

 

Home mortgage

 

 

120,463

 

 

 

—

 

 

 

698

 

 

 

—

 

 

 

121,161

 

Consumer

 

 

2,671

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,671

 

 

 

$

983,745

 

 

$

5,811

 

 

$

3,464

 

 

$

—

 

 

$

993,020