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Loans and Allowance for Credit Losses on Loans (Tables)
 9 Months Ended
Sep. 30, 2024
Receivables [Abstract]  
Schedule of Composition of Loan Portfolio
The following table presents the composition of the loan portfolio as of September 30, 2024 and December 31, 2023:

($ in thousands)September 30, 2024December 31, 2023
Commercial real estate$966,472 $885,585 
SBA—real estate232,209 224,695 
SBA—non-real estate20,170 14,997 
C&I212,476 120,970 
Home mortgage499,666 518,024 
Consumer14 1,574 
Gross loans receivable1,931,007 1,765,845 
Allowance for credit losses(22,960)(21,993)
Loans receivable, net(1)
$1,908,047 $1,743,852 
(1)Includes net deferred loan fees and net unamortized discounts of $260 thousand as of September 30, 2024 and net deferred loan costs and net unamortized premiums of $140 thousand as of December 31, 2023.
The following table represents the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2024 and December 31, 2023, for which repayment is expected to be obtained through the sale of the underlying collateral.

($ in thousands)Hotel / MotelSingle-Family Residential
Total(1)
As of September 30, 2024
SBA—real estate$2,520 $— $2,520 
Total$2,520 $— $2,520 
As of December 31, 2023
SBA—real estate$2,923 $— $2,923 
Home mortgage— 2,241 2,241 
Total$2,923 $2,241 $5,164 
(1)    Excludes guaranteed portion of SBA loans of $7.4 million as of September 30, 2024.
Schedule of Activity in Allowance for Loan Losses by Portfolio Segment
The following table summarizes the activity in the allowance for credit losses on loans by portfolio segment for the three and nine months ended September 30, 2024 and 2023:

($ in thousands)
Commercial
Real Estate
SBA—
Real Estate
SBA —Non-
Real Estate
C&I
Home
Mortgage
ConsumerTotal
Three Months Ended September 30, 2024
Beginning balance$7,926 $2,927 $253 $2,151 $9,499 $4 $22,760 
Provision for (reversal of) credit losses1,481 173 58 8 (1,482)(4)234 
Charge-offs— — (42)— 2 — (40)
Recoveries— — 6 — — — 6 
Ending balance$9,407 $3,100 $275 $2,159 $8,019 $— $22,960 
Three Months Ended September 30, 2023
Beginning balance$6,784 $1,218 $55 $1,270 $11,472 $3 $20,802 
Provision for (reversal of) credit losses1,171 34 91 (115)125 (3)1,303 
Charge-offs(457)(35)— — — — (492)
Recoveries— — 4 — — — 4 
Ending balance$7,498 $1,217 $150 $1,155 $11,597 $— $21,617 

($ in thousands)
Commercial
Real Estate
SBA—
Real Estate
SBA —Non-
Real Estate
C&I
Home
Mortgage
ConsumerTotal
Nine Months Ended September 30, 2024
Beginning balance$7,915 $1,657 $147 $1,215 $11,045 $14 $21,993 
Provision for (reversal of) credit losses1,492 1,509 149 944 (3,026)(14)1,054 
Charge-offs— (66)(42)— — — (108)
Recoveries— — 21 — — — 21 
Ending balance$9,407 $3,100 $275 $2,159 $8,019 $— $22,960 
Nine Months Ended September 30, 2023
Beginning balance$6,951 $1,607 $207 $1,643 $8,826 $7 $19,241 
Impact of CECL adoption875 (238)(142)(320)1,753 (4)1,924 
Provision for (reversal of) credit losses220 (106)84 (168)1,018 (3)1,045 
Charge-offs(548)(46)(34)— — — (628)
Recoveries— — 35 — — — 35 
Ending balance$7,498 $1,217 $150 $1,155 $11,597 $— $21,617 
Schedule of Recorded Investment in Nonaccrual Loans and Loans Past Due 90 or More Days and Still Accruing Interest by Portfolio Segment
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 September 30, 2024 and December 31, 2023:

($ in thousands)Nonaccrual Loans with a Related Allowance for Credit LossesNonaccrual Loans without a Related Allowance for Credit LossesTotal Nonaccrual Loans
90 or More
Days
Past Due &
Still Accruing
Total(1)
As of September 30, 2024
SBA—real estate$2,381 $649 $3,030 $— $3,030 
SBA—non-real estate183 — 183 — 183 
C&I407 — 407 — 407 
Total$2,971 $649 $3,620 $— $3,620 
As of December 31, 2023
SBA—real estate$2,302 $1,136 $3,438 $— $3,438 
SBA—non-real estate154 — 154 — 154 
Home mortgage249 2,241 2,490 — 2,490 
Total$2,705 $3,377 $6,082 $— $6,082 
(1)    Excludes guaranteed portion of SBA loans of $11.1 million and $2.0 million as of September 30, 2024 and December 31, 2023, respectively.
Schedule of Aging Analysis of Recorded Investment in Past Due Loans
The following table represents the aging analysis of the recorded investment in past due loans as of September 30, 2024 and December 31, 2023:

($ in thousands)
30-59
Days
Past Due
60-89
Days
Past Due
> 90 Days
Past Due
Total
Past Due(1)
Loans Not
Past Due
Total(2)
As of September 30, 2024
Commercial real estate$— $— $— $— $966,472 $966,472 
SBA—real estate1,344 1,041 510 2,895 229,314 232,209 
SBA—non-real estate208 138 — 346 19,824 20,170 
C&I— — — — 212,476 212,476 
Home mortgage2,675 5,031 — 7,706 491,960 499,666 
Consumer— — — — 14 14 
Total$4,227 $6,210 $510 $10,947 $1,920,060 $1,931,007 
As of December 31, 2023
Commercial real estate$— $— $— $— $885,585 $885,585 
SBA—real estate1,868 932 1,983 4,783 219,912 224,695 
SBA—non-real estate154 — — 154 14,843 14,997 
C&I— — — — 120,970 120,970 
Home mortgage4,076 2,730 2,491 9,297 508,727 518,024 
Consumer— — — — 1,574 1,574 
Total$6,098 $3,662 $4,474 $14,234 $1,751,611 $1,765,845 
(1)Excludes guaranteed portion of SBA loans of $3.5 million and $1.9 million as of September 30, 2024 and December 31, 2023, respectively.
(2)Excludes accrued interest receivables of $8.4 million and $7.3 million as of September 30, 2024 and December 31, 2023, respectively.
Schedule of Financing Receivable, Modified
The following table presents the amortized cost of modified loans and the financial effects of the modification for the three and nine months ended September 30, 2024 and 2023 by loan class and modification type:

Three Months Ended September 30, 2024
Modification TypePercentage to Each Loan Segment
($ in thousands)Payment DelayTerm ExtensionTotal
SBA—real estate$1,871 $— $1,871 0.81 %
Total$1871 $— $1871 
Three Months Ended September 30, 2023
Modification TypePercentage to Each Loan Segment
($ in thousands)Rate Reduction and Term ExtensionInterest OnlyTotal
C&I$121 $— $121 0.10 %
Total$121 $— $121 

Nine Months Ended September 30, 2024
Modification TypePercentage to Each Loan Segment
($ in thousands)Payment DelayInterest OnlyTerm ExtensionTotal
SBA—real estate$1,871 $390 $— $2,261 0.97 %
SBA—non-real estate— — 5 5 0.03 %
Total$1,871 $390 $5 $2,266 

Nine Months Ended September 30, 2023
Modification TypePercentage to Each Loan Segment
($ in thousands)Rate Reduction and Term ExtensionInterest OnlyTotal
SBA—real estate$— $387 $387 0.17 %
C&I435 $— 435 0.35 %
Total$435 $387 $822 
The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents financial performance of such loans that have been modified in the last 12 months:
Payment Performance as of September 30, 2024
($ in thousands)Current30 - 89 Days Past Due90+ Days Past DueTotal
SBA—real estate(1)
$3,392 $— $— $3,392 
SBA—non-real estate5 — — 5 
Total$3,397 $— $— $3,397 
(1)Excludes guaranteed portion of SBA loans of $9.3 million.

Payment Performance as of September 30, 2023
($ in thousands)Current30 - 89 Days Past Due90+ Days Past DueTotal
SBA—real estate$388 $— $— $388 
C&I435 — — 435 
Total$823 $— $— $823 

The following tables describe the financial effect of the loan modifications made to borrowers experiencing financial difficulty for the periods presented:

Financial Effect
Modification & Loan TypesDescription of Financial EffectThree months Ended
September 30, 2024		Nine months Ended
September 30, 2024
Payment Delay:
SBA—real estateDeferment of Payment by a weighted average of:0.6 years0.9 years
Term Extension:
SBA—non-real estateExtended term by a weighted average of:— 1.8 years
Interest Only:
SBA—real estateInterest only Payment by a weighted average of:— 0.6 years

Financial Effect
Modification & Loan TypesDescription of Financial EffectThree months Ended
September 30, 2023		Nine months Ended
September 30, 2023
Term Extension:
SBA—non-real estateDeferment of Payment by a weighted average of:6.0 years8.9 years
Interest Only:
SBA—real estateInterest only Payment by a weighted average of:— 1.0 year
Rate Reduction:
C&IRate Reduction by a weighted average of:— 2.75 %
Schedule of Credit Risk Ratings by Portfolio Segment
The following table presents the loan portfolio's amortized cost by loan type, risk rating and year of origination as of September 30, 2024 and December 31, 2023:

September 30, 2024
Term Loans by Origination YearRevolving LoansRevolving Loans Converted to Term Loans
Total(1)
($ in thousands)20242023
2022
20212020Prior
Commercial real estate
Pass$199,186 $105,858 $241,434 $188,208 $95,033 $104,943 $26,242 $— $960,904 
Special mention— — 581 — — — — — 581 
Substandard— — 4,623 — — 364 — — 4,987 
Doubtful— — — — — — — — — 
Subtotal$199,186 $105,858 $246,638 $188,208 $95,033 $105,307 $26,242 $— $966,472 
Current period charge-offs$— $— $— $— $— $— $— $— $— 
SBA— real estate
Pass$25,075 $27,853 $41,894 $24,633 $16,212 $76,595 $— $— $212,262 
Special mention— — 2,737 — — 467 — — 3,204 
Substandard— — 10,732 2,988 — 3,023 — — 16,743 
Doubtful— — — — — — — — — 
Subtotal$25,075 $27,853 $55,363 $27,621 $16,212 $80,085 $— $— $232,209 
Current period charge-offs$— $— $— $66 $— $— $— $— $66 
SBA—non-real estate
Pass$7,967 $4,693 $2,094 $173 $1,347 $2,936 $— $— $19,210 
Special mention— 55 — — — — — — 55 
Substandard— — 510 — 176 121 — — 807 
Doubtful— — — — — 98 — — 98 
Subtotal$7,967 $4,748 $2,604 $173 $1,523 $3,155 $— $— $20,170 
Current period charge-offs$— $32 $— $— $— $10 $— $— $42 
C&I
Pass$17,191 $13,848 $15,593 $18,438 $3,561 $11 $140,405 $2,322 $211,369 
Special mention— — — — — — 700 — 700 
Substandard— — 407 — — — — — 407 
Doubtful— — — — — — — — — 
Subtotal$17,191 $13,848 $16,000 $18,438 $3,561 $11 $141,105 $2,322 $212,476 
Current period charge-offs$— $— $— $— $— $— $— $— $— 
Home mortgage
Pass$24,311 $65,023 $287,957 $71,025 $17,848 $33,502 $— $— $499,666 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Subtotal$24,311 $65,023 $287,957 $71,025 $17,848 $33,502 $— $— $499,666 
Current period charge-offs$— $— $— $— $— $— $— $— $— 
Consumer
Pass$18 $— $— $— $— $— $(4)$— $14 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Subtotal$18 $— $— $— $— $— $(4)$— $14 
Current period charge-offs$— $— $— $— $— $— $— $— $— 
Total loans
Pass$273,748 $217,275 $588,972 $302,477 $134,001 $217,987 $166,643 $2,322 $1,903,425 
Special mention— 55 3,318 — — 467 700 — 4,540 
Substandard— — 16,272 2,988 176 3,508 — — 22,944 
Doubtful— — — — — 98 — — 98 
Subtotal$273,748 $217,330 $608,562 $305,465 $134,177 $222,060 $167,343 $2,322 $1,931,007 
Current period charge-offs$— $32 $— $66 $— $10 $— $— $108 
(1)Excludes accrued interest receivables of $8.4 million as of September 30, 2024.

December 31, 2023
Term Loans by Origination YearRevolving LoansRevolving Loans Converted to Term Loans
Total(1)
($ in thousands)2023
2022
202120202019Prior
Commercial real estate
Pass$97,114 $207,860 $154,872 $97,137 $138,908 $163,320 $21,059 $— $880,270 
Special mention— — — — — — — — — 
Substandard— 319 — — — 4,996 — — 5,315 
Doubtful— — — — — — — — — 
Subtotal$97,114 $208,179 $154,872 $97,137 $138,908 $168,316 $21,059 $— $885,585 
Current period charge-offs$— $457 $121 $— $91 $17 $— $— $686 
SBA— real estate
Pass$31,920 $44,504 $26,188 $22,732 $28,244 $64,442 $— $— $218,030 
Special mention— — — — — 1,428 — — 1,428 
Substandard— 1,787 1,079 1,136 — 1,235 — — 5,237 
Doubtful— — — — — — — — — 
Subtotal$31,920 $46,291 $27,267 $23,868 $28,244 $67,105 $— $— $224,695 
Current period charge-offs$— $— $46 $— $— $— $— $— $46 
SBA—non-real estate
Pass$5,408 $2,584 $200 $1,556 $950 $3,423 $— $— $14,121 
Special mention— — — — — — — — — 
Substandard— 591 — — — 187 — — 778 
Doubtful— — — — — 98 — — 98 
Subtotal$5,408 $3,175 $200 $1,556 $950 $3,708 $— $— $14,997 
Current period charge-offs$— $— $— $— $— $35 $— $— $35 
C&I
Pass$15,117 $17,939 $22,098 $4,695 $1,720 $1,734 $55,106 $2,561 $120,970 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Subtotal$15,117 $17,939 $22,098 $4,695 $1,720 $1,734 $55,106 $2,561 $120,970 
Current period charge-offs$17 $— $80 $— $— $— $— $— $97 
Home mortgage
Pass$72,182 $304,346 $79,585 $18,634 $8,939 $31,848 $— $— $515,534 
Special mention— — — — — — — — — 
Substandard— 2,241 249 — — — — — 2,490 
Doubtful— — — — — — — — — 
Subtotal$72,182 $306,587 $79,834 $18,634 $8,939 $31,848 $— $— $518,024 
Current period charge-offs$— $— $— $— $— $— $— $— $— 
Consumer
Pass$4 $— $— $— $77 $— $1,493 $— $1,574 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Subtotal$4 $— $— $— $77 $— $1,493 $— $1,574 
Current period charge-offs$— $— $— $— $— $— $— $— $— 
Total loans
Pass$221,745 $577,233 $282,943 $144,754 $178,838 $264,767 $77,658 $2,561 $1,750,499 
Special mention— — — — — 1,428 — — 1,428 
Substandard— 4,938 1,328 1,136 — 6,418 — — 13,820 
Doubtful— — — — — 98 — — 98 
Subtotal$221,745 $582,171 $284,271 $145,890 $178,838 $272,711 $77,658 $2,561 $1,765,845 
Current period charge-offs$17 $457 $247 $— $91 $52 $— $— $864 
(1)Excludes accrued interest receivables of $7.3 million as of December 31, 2023.