XML 38 R27.htm IDEA: XBRL DOCUMENT v3.25.1
Loans and Allowance for Credit Losses on Loans (Tables)
 3 Months Ended
Mar. 31, 2025
Receivables [Abstract]  
Schedule of Composition of Loan Portfolio
The following table presents the composition of the loan portfolio as of March 31, 2025 and December 31, 2024:

($ in thousands)March 31, 2025December 31, 2024
Commercial real estate$1,023,278 $980,247 
SBA—real estate237,212 231,962 
SBA—non-real estate21,566 21,748 
C&I202,250 213,097 
Home mortgage559,543 509,524 
Consumer36 274 
Gross loans receivable2,043,885 1,956,852 
Allowance for credit losses(25,368)(24,796)
Loans receivable, net(1)
$2,018,517 $1,932,056 
(1)Includes net deferred loan costs (fees) and net unamortized premiums (discounts) of $(114) thousand as of March 31, 2025 and $(702) thousand as of December 31, 2024.
The following table represents the amortized cost basis of collateral-dependent loans by class of loans as of March 31, 2025 and December 31, 2024, for which repayment is expected to be obtained through the sale of the underlying collateral.
($ in thousands)Hotel / MotelRetailGas StationSingle-Family Residential
Total(1)
As of March 31, 2025
Commercial real estate$1,580 $357 $— $— $1,937 
SBA—real estate3,704 1,990 169 — 5,863 
Home mortgage— — — 2,104 2,104 
Total$5,284 $2,347 $169 $2,104 $9,904 
As of December 31, 2024
Commercial real estate$1,580 $363 $— $— $1,943 
SBA—real estate3,702 2,006 — — 5,708 
Total$5,282 $2,369 $— $— $7,651 
(1)    Excludes guaranteed portion of SBA loans of $13.1 million and $15.2 million as of March 31, 2025 and December 31, 2024, respectively.
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 months ended March 31, 2025 and 2024:

($ in thousands)
Commercial
Real Estate
SBA—
Real Estate
SBA —Non-
Real Estate
C&I
Home
Mortgage
ConsumerTotal
Three Months Ended March 31, 2025
Beginning balance$9,290 $5,557 $418 $1,844 $7,684 $3 $24,796 
Provision for (reversal of) credit losses(280)(176)89 (105)1,162 (3)687 
Charge-offs— — (10)(29)(91)— (130)
Recoveries— — 15 — — — 15 
Ending balance$9,010 $5,381 $512 $1,710 $8,755 $— $25,368 
Three Months Ended March 31, 2024
Beginning balance$7,915 $1,657 $147 $1,215 $11,045 $14 $21,993 
Provision for (reversal of) credit losses129 1,202 71 448 (1,652)(5)193 
Charge-offs— (66)— — (2)— (68)
Recoveries— — 11 — — — 11 
Ending balance$8,044 $2,793 $229 $1,663 $9,391 $9 $22,129 
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 March 31, 2025 and December 31, 2024:

($ 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 March 31, 2025
Commercial real estate$357 $1,580 $1,937 $— $1,937 
SBA—real estate2,342 3,704 6,046 — 6,046 
SBA—non-real estate325 — 325 — 325 
C&I— — — — — 
Home mortgage— 2,104 2,104 — 2,104 
Total$3,024 $7,388 $10,412 $— $10,412 
As of December 31, 2024
Commercial real estate$363 $1,580 $1,943 $— $1,943 
SBA—real estate2,006 3,702 5,708 — 5,708 
SBA—non-real estate169 — 169 — 169 
Total$2,538 $5,282 $7,820 $— $7,820 
(1)    Excludes guaranteed portion of SBA loans of $14.3 million and $16.3 million as of March 31, 2025 and December 31, 2024, 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 March 31, 2025 and December 31, 2024:

($ 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 March 31, 2025
Commercial real estate$940 $— $357 $1,297 $1,021,981 $1,023,278 
SBA—real estate2,267 — 2,342 4,609 232,603 237,212 
SBA—non-real estate232 16 139 387 21,179 21,566 
C&I488 — — 488 201,762 202,250 
Home mortgage2,514 1,457 2,104 6,075 553,468 559,543 
Consumer— — — — 36 36 
Total$6,441 $1,473 $4,942 $12,856 $2,031,029 $2,043,885 
As of December 31, 2024
Commercial real estate$— $— $362 $362 $979,885 $980,247 
SBA—real estate237 75 2,006 2,318 229,644 231,962 
SBA—non-real estate254 138 2 394 21,354 21,748 
C&I15 — — 15 213,082 213,097 
Home mortgage2,774 5,594 — 8,368 501,156 509,524 
Consumer— — — — 274 274 
Total$3,280 $5,807 $2,370 $11,457 $1,945,395 $1,956,852 
(1)Excludes guaranteed portion of SBA loans of $6.4 million and $8.7 million as of March 31, 2025 and December 31, 2024, respectively.
(2)Excludes accrued interest receivables of $8.6 million and $8.1 million as of March 31, 2025 and December 31, 2024, respectively.
Schedule of Financing Receivable, Modified
The following table presents the amortized cost of loans as of March 31, 2025 that were modified during the three months ended March 31, 2025 by loan class and modification type:

As of March 31, 2025
Modification TypePercentage to Each Loan Segment
($ in thousands)Payment DelayInterest OnlyTotal
Commercial real estate$— $3,155 $3,155 0.31 %
SBA—real estate(1)
649 — 649 1.08 %
Total$649 $3,155 $3,804 
(1)Excludes guaranteed portion of SBA loans of $1.9 million.
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 March 31, 2025
Payment Delay:
SBA—real estateDeferment of Payment by a weighted average of:0.5 years
Interest Only:
Commercial real estateInterest only Payment by a weighted average of:0.5 years
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 March 31, 2025
($ in thousands)Current30 - 89 Days Past Due90+ Days Past DueTotal
Commercial real estate$4,735 $— $— $4,735 
SBA—real estate(1)4,095 — — 4,095 
C&I250 — — 250 
Total$9,080 $— $— $9,080 
(1)Excludes guaranteed portion of SBA loans of $7.4 million.

Payment Performance as of March 31, 2024
($ in thousands)Current30 - 89 Days Past Due90+ Days Past DueTotal
Commercial real estate$624 $— $— $624 
SBA—real estate(1)3,090 3,090 
C&I403 403 
Home mortgage354 — — 354 
Total$4,471 $— $— $4,471 
(1)Excludes guaranteed portion of SBA loans of $2.8 million.
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 March 31, 2025 and December 31, 2024:

March 31, 2025
Term Loans by Origination YearRevolving LoansRevolving Loans Converted to Term Loans
Total(1)
($ in thousands)20242023
2022
20212020Prior
Commercial real estate
Pass$73,633 $267,903 $100,144 $231,730 $172,890 $150,546 $17,125 $— $1,013,971 
Special mention— — — 576 2,229 — — — 2,805 
Substandard— — 1,580 4,565 — 357 — — 6,502 
Doubtful— — — — — — — — — 
Subtotal$73,633 $267,903 $101,724 $236,871 $175,119 $150,903 $17,125 $— $1,023,278 
Current period charge-offs$— $— $— $— $— $— $— $— $— 
SBA— real estate
Pass$14,125 $29,027 $26,295 $37,190 $18,645 $84,454 $— $— $209,736 
Special mention— — — 6,303 — 627 — — 6,930 
Substandard— — 1,492 9,965 291 8,798 — — 20,546 
Doubtful— — — — — — — — — 
Subtotal$14,125 $29,027 $27,787 $53,458 $18,936 $93,879 $— $— $237,212 
Current period charge-offs$— $— $— $— $— $— $— $— $— 
SBA—non-real estate
Pass$1,462 $9,606 $4,190 $1,782 $124 $3,431 $— $— $20,595 
Special mention— — — — — — — — — 
Substandard— — — 440 — 433 — — 873 
Doubtful— — — — — 98 — — 98 
Subtotal$1,462 $9,606 $4,190 $2,222 $124 $3,962 $— $— $21,566 
Current period charge-offs$— $— $3 $— $— $7 $— $— $10 
C&I
Pass$685 $21,527 $11,284 $12,513 $17,326 $4,241 $132,653 $1,632 $201,861 
Special mention— — — — — — 389 — 389 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Subtotal$685 $21,527 $11,284 $12,513 $17,326 $4,241 $133,042 $1,632 $202,250 
Current period charge-offs$— $— $29 $— $— $— $— $— $29 
Home mortgage
Pass$74,007 $39,900 $59,415 $268,021 $69,370 $46,726 $— $— $557,439 
Special mention— — — — — — — — — 
Substandard— — — 1,340 — 764 — — 2,104 
Doubtful— — — — — — — — — 
Subtotal$74,007 $39,900 $59,415 $269,361 $69,370 $47,490 $— $— $559,543 
Current period charge-offs$— $— $— $77 $— $14 $— $— $91 
Consumer
Pass$13 $— $— $— $— $— $23 $— $36 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Subtotal$13 $— $— $— $— $— $23 $— $36 
Current period charge-offs$— $— $— $— $— $— $— $— $— 
Total loans
Pass$163,925 $367,963 $201,328 $551,236 $278,355 $289,398 $149,801 $1,632 $2,003,638 
Special mention— — — 6,879 2,229 627 389 — 10,124 
Substandard— — 3,072 16,310 291 10,352 — — 30,025 
Doubtful— — — — — 98 — — 98 
Subtotal$163,925 $367,963 $204,400 $574,425 $280,875 $300,475 $150,190 $1,632 $2,043,885 
Current period charge-offs$— $— $32 $77 $— $21 $— $— $130 
(1)Excludes accrued interest receivables of $8.6 million as of March 31, 2025.

December 31, 2024
Term Loans by Origination YearRevolving LoansRevolving Loans Converted to Term Loans
Total(1)
($ in thousands)2023
2022
202120202019Prior
Commercial real estate
Pass$201,141 $85,056 $190,968 $137,425 $88,993 $250,291 $17,012 $— $970,886 
Special mention— — 579 2,246 — — — — 2,825 
Substandard— 1,580 319 — — 4,637 — — 6,536 
Doubtful— — — — — — — — — 
Subtotal$201,141 $86,636 $191,866 $139,671 $88,993 $254,928 $17,012 $— $980,247 
Current period charge-offs$— $— $— $— $— $— $— $— $— 
SBA— real estate
Pass$31,441 $26,508 $41,375 $18,819 $16,166 $72,440 $— $— $206,749 
Special mention— — 2,345 — — 739 — — 3,084 
Substandard— 1,182 9,965 2,868 — 8,114 — — 22,129 
Doubtful— — — — — — — — — 
Subtotal$31,441 $27,690 $53,685 $21,687 $16,166 $81,293 $— $— $231,962 
Current period charge-offs$— $— $— $66 $— $— $— $— $66 
SBA—non-real estate
Pass$10,443 $4,498 $1,837 $154 $1,303 $2,621 $— $— $20,856 
Special mention— — — — — — — — — 
Substandard— — 483 — 157 154 — — 794 
Doubtful— — — — — 98 — — 98 
Subtotal$10,443 $4,498 $2,320 $154 $1,460 $2,873 $— $— $21,748 
Current period charge-offs$— $— $— $— $— $27 $— $— $27 
C&I
Pass$19,712 $11,525 $14,016 $18,122 $3,356 $2,664 $140,278 $3,024 $212,697 
Special mention— — — — — — 400 — 400 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Subtotal$19,712 $11,525 $14,016 $18,122 $3,356 $2,664 $140,678 $3,024 $213,097 
Current period charge-offs$— $44 $— $— $— $— $— $— $44 
Home mortgage
Pass$42,112 $63,000 $284,208 $70,326 $17,749 $32,129 $— $— $509,524 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Subtotal$42,112 $63,000 $284,208 $70,326 $17,749 $32,129 $— $— $509,524 
Current period charge-offs$— $— $— $— $— $— $— $— $— 
Consumer
Pass$27 $— $— $— $— $— $247 $— $274 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Subtotal$27 $— $— $— $— $— $247 $— $274 
Current period charge-offs$— $— $— $— $— $— $— $— $— 
Total loans
Pass$304,876 $190,587 $532,404 $244,846 $127,567 $360,145 $157,537 $3,024 $1,920,986 
Special mention— — 2,924 2,246 — 739 400 — 6,309 
Substandard— 2,762 10,767 2,868 157 12,905 — — 29,459 
Doubtful— — — — — 98 — — 98 
Subtotal$304,876 $193,349 $546,095 $249,960 $127,724 $373,887 $157,937 $3,024 $1,956,852 
Current period charge-offs$— $44 $— $66 $— $27 $— $— $137 
(1)Excludes accrued interest receivables of $8.1 million as of December 31, 2024.