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Loans and Allowance for Loan Losses
 3 Months Ended
Mar. 31, 2022
Receivables [Abstract]  
Loans and Allowance for Loan Losses Loans and Allowance for Loan Losses
The following table presents the composition of the loan portfolio as of March 31, 2022 and December 31, 2021:
($ in thousands)March 31, 2022December 31, 2021
Commercial real estate$730,841 $701,450 
SBA loans—real estate217,169 220,099 
SBA loans—non-real estate (1)35,895 55,759 
Commercial and industrial ("C&I")176,934 162,543 
Home mortgage266,465 173,303 
Consumer1,106 865 
Gross loans receivable1,428,410 1,314,019 
Allowance for loan losses(16,672)(16,123)
Loans receivable, net (2)$1,411,738 $1,297,896 
(1)Includes SBA Paycheck Protection Program ("PPP") loans of $22.1 million and $40.6 million as of March 31, 2022 and December 31, 2021, respectively.
(2)Includes net deferred loan fees or costs, unamortized premiums and unaccreted discounts of $4.7 million and $7.0 million as of March 31, 2022 and December 31, 2021, respectively.
No loans were outstanding to related parties as of March 31, 2022 and December 31, 2021.

The following table summarizes the activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2022 and 2021:
($ in thousands)
Commercial
Real Estate
SBA Loans—
Real Estate
SBA
Loans—Non-
Real Estate
C&I
Home
Mortgage
ConsumerTotal
Three Months Ended March 31, 2022
Beginning balance$8,150 $2,022 $199 $2,848 $2,891 $13 $16,123 
(Reversal of) provision for loan losses (1)(1,670)(258)(47)644 1,877 — 546 
Charge-offs— (14)— — — — (14)
Recoveries— — 17 — — — 17 
Ending balance$6,480 $1,750 $169 $3,492 $4,768 $13 $16,672 
Three Months Ended March 31, 2021
Beginning balance$8,505 $1,802 $278 $2,563 $2,185 $19 $15,352 
(Reversal of) provision for loan losses (1)89 228 14 (232)(110)(5)(16)
Charge-offs— — — — — — — 
Recoveries— — — — — 3 3 
Ending balance$8,594 $2,030 $292 $2,331 $2,075 $17 $15,339 
(1)Excludes (reversal of) provision for uncollectible accrued interest receivable of $(205) thousand and $636 thousand for the three months ended March 31, 2022 and 2021, respectively.
The following table presents the allowance for loan losses and recorded investment (not including accrued interest receivable) by portfolio segment and impairment methodology as of March 31, 2022 and December 31, 2021:
($ in thousands)
Individually
Evaluated
for Impairment
Collectively
Evaluated
for Impairment
Total
As of March 31, 2022
Allowance for loan losses (1):
Commercial real estate$— $6,480 $6,480 
SBA loans—real estate— 1,750 1,750 
SBA loans—non-real estate— 169 169 
C&I305 3,187 3,492 
Home mortgage— 4,768 4,768 
Consumer— 13 13 
Total$305 $16,367 $16,672 
Loans (2):
Commercial real estate$— $730,841 $730,841 
SBA loans—real estate810 216,359 217,169 
SBA loans—non-real estate— 35,895 35,895 
C&I305 176,629 176,934 
Home mortgage— 266,465 266,465 
Consumer— 1,106 1,106 
Total$1,115 $1,427,295 $1,428,410 
As of December 31, 2021
Allowance for loan losses (1):
Commercial real estate$— $8,150 $8,150 
SBA loans—real estate— 2,022 2,022 
SBA loans—non-real estate— 199 199 
C&I312 2,536 2,848 
Home mortgage— 2,891 2,891 
Consumer— 13 13 
Total$312 $15,811 $16,123 
Loans (2):
Commercial real estate$— $701,450 $701,450 
SBA loans—real estate812 219,287 220,099 
SBA loans—non-real estate— 55,759 55,759 
C&I312 162,231 162,543 
Home mortgage— 173,303 173,303 
Consumer— 865 865 
Total$1,124 $1,312,895 $1,314,019 
(1)Excludes allowance for uncollectible accrued interest receivable of $0 and $205 thousand as of March 31, 2022 and December 31, 2021, respectively.
(2)Excludes accrued interest receivables of $4.5 million and $4.4 million as of March 31, 2022, and December 31, 2021, respectively.
The following table presents the recorded investment of individually impaired loans and the specific allowance for loan losses as of March 31, 2022 and December 31, 2021:
March 31, 2022 (1)December 31, 2021 (1)
($ in thousands)Unpaid Principal BalanceRecorded
Investment
With No
Allowance		Recorded
Investment
With
Allowance		Related
Allowance		Unpaid Principal BalanceRecorded
Investment
With No
Allowance		Recorded
Investment
With
Allowance		Related
Allowance
SBA loans—real estate$824 $824 $— $— $812 $812 $— $— 
C&I305 — 305 305 312 — 312 312 
Total$1,129 $824 $305 $305 $1,124 $812 $312 $312 
(1)    The difference between the unpaid principal balance (net of partial charge-offs) and the recorded investment in the loans was not considered to be material.

The following table presents the average recorded investment in impaired loans and the amount of interest income recognized on impaired loans by portfolio segment for the three months ended March 31, 2022 and March 31, 2021. The difference between interest income recognized and cash basis interest recognized was immaterial.
Three Months Ended March 31,
20222021
($ in thousands)Average
Recorded
Investment		Interest
Income
Recognized		Average
Recorded
Investment		Interest
Income
Recognized
SBA loans—real estate$818 $— $255 $4 
C&I309 8 330 3 
Total$1,127 $8 $585 $7 

The following table presents the recorded investment in nonaccrual loans and loans past due 90 or more days and still accruing interest, by portfolio as of March 31, 2022 and December 31, 2021:
($ in thousands)Nonaccrual
90 or More
Days
Past Due &
Still Accruing
Total
As of March 31, 2022
SBA loans—real estate$810 $— $810 
SBA loans—non-real estate691 — 691 
C&I305 — 305 
Home mortgage1,000 — 1,000 
Total$2,806 $— $2,806 
As of December 31, 2021
SBA loans—real estate$812 $— $812 
SBA loans—non-real estate837 200 1,037 
C&I313 — 313 
Home mortgage1,038 — 1,038 
Total$3,000 $200 $3,200 
Nonaccrual loans and loans past due 90 or more days and still accruing interest include both homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.
The following table represents the aging analysis of the recorded investment in past due loans as of March 31, 2022 and December 31, 2021:
($ in thousands)
30-59
Days
Past Due
60-89
Days
Past Due
> 90 Days
Past Due
Total
Past Due
Loans Not
Past Due
Total (1)
As of March 31, 2022
Commercial real estate$— $— $— $— $730,841 $730,841 
SBA—real estate78 — 406 484 216,685 217,169 
SBA—non-real estate123 — 190 313 35,582 35,895 
C&I— — — — 176,934 176,934 
Home mortgage1,000 — — 1,000 265,465 266,465 
Consumer— — — — 1,106 1,106 
Total$1,201 $— $596 $1,797 $1,426,613 $1,428,410 
As of December 31, 2021
Commercial real estate$— $— $— $— $701,450 $701,450 
SBA—real estate— — 419 419 219,680 220,099 
SBA—non-real estate76 336 881 1,293 54,466 55,759 
C&I— — — — 162,543 162,543 
Home mortgage— — 893 893 172,410 173,303 
Consumer— — — — 865 865 
Total$76 $336 $2,193 $2,605 $1,311,414 $1,314,019 
(1)Excludes accrued interest receivables of $4.5 million and $4.4 million as of March 31, 2022, and December 31, 2021, respectively.
Troubled Debt Restructurings: When, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession for other than an insignificant period of time to a borrower that the Company would not otherwise consider, the related loan is classified as a troubled debt restructuring (“TDR”), the balance of which totaled $305 thousand and $313 thousand as of March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022 and December 31, 2021, the Company has allocated $305 thousand and $313 thousand of specific reserves to the loans classified as TDRs, respectively. The Company has not committed to lend any additional amounts to customers with outstanding loans that are classified as TDRs.
Modifications made were primarily extensions of existing payment modifications on loans previously identified as TDRs. There were no new loans identified as TDRs during the three months ended March 31, 2022 and 2021. There were no payment defaults during the three months ended March 31, 2022 and 2021 of loans that had been modified as TDRs within the previous twelve months.
Loan Payment Deferrals: Total outstanding balance of loans remaining in deferment status as of March 31, 2022, represented 0.3% of the total loan portfolio.
Paycheck Protection Program loans: A provision in the CARES Act created the PPP, which is administered by the SBA. The PPP is intended to provide loans to small businesses to pay expenses related to their employees, rent, mortgage interest, and utilities. The loans may be forgiven conditioned upon the client providing applicable documentation evidencing their compliant with the terms of the program, including compliance regarding the use of funds. The Bank is an approved SBA lender and began accepting applications for the program on April 3, 2020.
As of March 31, 2022, the Company had loans outstanding with a carrying value of $22.1 million, which were recorded in the SBA – non-real estate. Since the PPP’s inception through March 31, 2022, the Company has funded $154.5 million, and $137.0 million of principal forgiveness has been provided on qualifying PPP loans.
Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. For consumer loans, a credit grade is established at inception, and generally only adjusted based on performance. The Company analyzes loans individually by
classifying the loans as to credit risk. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings:
Special Mention—Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date.
Substandard—Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
Doubtful—Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans.

As of March 31, 2022 and December 31, 2021, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:
($ in thousands)Pass
Special
Mention
SubstandardDoubtfulTotal (1)
As of March 31, 2022
Commercial real estate$730,841 $— $— $— $730,841 
SBA loans—real estate215,489 — 1,680 — 217,169 
SBA loans—non-real estate35,032 — 840 23 35,895 
C&I176,629 — 305 — 176,934 
Home mortgage265,465 — 1,000 — 266,465 
Consumer1,106 — — — 1,106 
Total$1,424,562 $— $3,825 $23 $1,428,410 
As of December 31, 2021
Commercial real estate$701,450 $— $— $— $701,450 
SBA loans—real estate218,408 — 1,691 — 220,099 
SBA loans—non-real estate54,762 — 966 31 55,759 
C&I162,230 — 313 — 162,543 
Home mortgage172,265 — 1,038 — 173,303 
Consumer865 — — — 865 
Total$1,309,980 $— $4,008 $31 $1,314,019 
(1)Excludes accrued interest receivables of $4.5 million and $4.4 million as of March 31, 2022, and December 31, 2021, respectively.