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Loans and Allowance For Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2020
Loans and Leases Receivable Disclosure [Line Items]  
Summary of Outstanding Loans
Outstanding loans as of June 30, 2020 and December 31, 2019 are summarized below. Certain loans have been pledged to secure borrowing arrangements (see Note 4). Additionally, SBA loans include loans funded under the Paycheck Protection Program as a result of the COVID-19 pandemic (see Note 7).
 
   June 30,   December 31, 
(Dollars in thousands)
  2020   2019 
Commercial and industrial
   365,881    389,746 
Real estate - other
   508,916    502,929 
Real estate - construction and land
   49,524    42,519 
SBA
   373,429    12,830 
Other
   1,731    1,628 
  
 
 
   
 
 
 
Total loans, gross
   1,299,481    949,652 
Deferred loan origination (fees)/costs, net
   (1,569)    2,555 
Allowance for loan losses
   (12,524)    (11,075) 
  
 
 
   
 
 
 
Total loans, net
   1,285,388    941,132 
  
 
 
   
 
 
 
Summary of Information Related to Impaired Loans
The following table reflects information related to impaired loans as of June 30, 2020 and December 31, 2019.
 
       Unpaid       Average   Interest 
   Recorded   Principal   Related   Recorded   Income 
(Dollars in thousands)
  Investment   Balance   Allowance   Investment   Recognized 
As of June 30, 2020
          
With no related allowance recorded:
          
Commercial and industrial
  $1,008   $3,993   $ —     $3,993   $10 
SBA
  $235   $480   $—     $1,921   $ —   
With an allowance recorded:
          
Commercial and industrial
  $2,246   $2,246   $69   $2,249   $91 
Total:
          
Commercial and industrial
  $3,254   $6,239   $69   $6,242   $101 
SBA
  $235   $480   $—     $1,921   $—   
As of December 31, 2019
          
With no related allowance recorded:
          
Commercial and industrial
  $1,846   $1,860   $—     $1,282   $68 
Real estate - other
  $687   $687   $—     $700   $52 
SBA
  $294   $294   $—     $1,723   $—   
With an allowance recorded:
          
Commercial and industrial
  $2,726   $4,623   $600   $4,620   $56 
SBA
  $50   $200   $50   $203   $15 
Total:
          
Commercial and industrial
  $4,572   $6,483   $600   $5,902   $124 
Real estate - other
  $687   $687   $—     $700   $52 
SBA
  $344   $494   $50   $1,926   $15 
Loans Receivable [Member]  
Loans and Leases Receivable Disclosure [Line Items]  
Summary of Financing Receivable and Related Impairment Methodology
The following table reflects the impairment methodology applied to gross loans by portfolio segment and the related allowance for loan losses as of June 30, 2020 and December 31, 2019.
 
(Dollars in thousands)
  Commercial
and
Industrial		   Real Estate
Other		   Real Estate
Construction
and Land		   SBA   Other   Total 
As of June 30, 2020
            
Gross loans:
            
Loans individually evaluated for impairment
  $3,254   $—     $—     $235   $—     $3,489 
Loans collectively evaluated for impairment
   362,627    508,916    49,524    373,194    1,731    1,295,992 
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total gross loans
  $365,881   $508,916   $49,524   $373,429   $1,731   $1,299,481 
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Allowance for loan losses:
                            
Loans individually evaluated for impairment
  $69   $—     $—     $—     $—     $69 
Loans collectively evaluated for impairment
   7,782    3,332    956    366    19    12,455 
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total allowance for loan losses
  $7,851   $3,332   $956   $366   $19   $12,524 
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
As of December 31, 2019
            
Gross loans:
            
Loans individually evaluated for impairment
  $4,572   $687   $—     $344   $—     $5,603 
Loans collectively evaluated for impairment
   385,174    502,242    42,519    12,486    1,628    944,049 
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total loans
  $389,746   $502,929   $42,519   $12,830   $1,628   $949,652 
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Allowance for loan losses:
                            
Loans individually evaluated for impairment
  $600   $—     $—     $
50
   $—     $650 
Loans collectively evaluated for impairment
   6,108    3,281    1,022    6    8    10,425 
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total allowance for loan losses
  $6,708   $3,281   $1,022   $6   $58   $11,075 
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Summary of Allowance for Loan Losses
The following table reflects the changes in, and allocation of, the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2020 and June 30, 2019.
 
   Commercial     Real Estate          
   and  Real Estate  Construction          
(Dollars in thousands)
  Industrial  Other  and Land  SBA  Other  Total 
Three months ended June 30, 2020
       
Beginning balance
  $7,843  $2,661  $730  $321  $10  $11,565 
Provision for loan losses
   1,871   671   226   153   9   2,930 
Charge-offs
   (1,868)   —     —     (108)   —     (1,976) 
Recoveries
   5   —     —     —     —     5 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Ending balance
  $7,851  $3,332  $956  $366  $19  $12,524 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Three months ended June 30, 2019
       
Beginning balance
  $5,826  $4,099  $1,120  $188  $17  $11,250 
Provision for loan losses
   1,823   (1,411)   (175)   11   (2)   246 
Charge-offs
   —     —     —     —     —     —   
Recoveries
   5   —     —     —     —     5 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Ending balance
  $7,654  $2,688  $945  $199  $15  $11,501 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Six months ended June 30, 2020
       
Beginning balance
  $6,708  $3,281  $1,022  $50  $14  $11,075 
Provision for loan losses
   2,916   51   (66)   424   5   3,330 
Charge-offs
   (1,868)   —     —     (108)   —     (1,976) 
Recoveries
   95   —     —     —     —     95 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Ending balance
  $7,851  $3,332  $956  $366  $19  $12,524 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Six months ended June 30, 2019
       
Beginning balance
  $5,401  $3,677  $1,524  $172  $26  $10,800 
Provision for loan losses
   2,241   (989)   (579)   164   (12)   826 
Charge-offs
   —     —     —     
(137
)
 		  —     
(137
)
 
Recoveries
   12   —     —     —     —     12 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Ending balance
  $7,654  $2,688  $945  $199  $15  $11,501 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Summary of Loan Portfolio Allocated by Management's Internal Risk Ratings
The following table reflects the loan portfolio allocated by management’s internal risk ratings at June 30, 2020 and December 31, 2019.
 
   Commercial       Real Estate             
   and   Real Estate   Construction             
(Dollars in thousands)
  Industrial   Other   and Land   SBA   Other   Total 
As of June 30, 2020
            
Grade:
            
Pass
  $351,053   $499,176   $47,746   $370,914   $1,731   $1,270,620 
Special Mention
   6,807    5,184    —      1,607    —      13,598 
Substandard
   8,021    4,556    1,778    908    —      15,263 
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total
  $365,881   $508,916   $49,524   $373,429   $1,731   $1,299,481 
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
As of December 31, 2019
            
Grade:
            
Pass
  $378,327   $494,314   $40,731   $10,736   $1,628   $925,736 
Special Mention
   6,894    7,928    1,788    1,655    —      18,265 
Substandard
   4,525    687    —      439    —      5,651 
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total
  $389,746   $502,929   $42,519   $12,830   $1,628   $949,652 
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Summary of Aging Analysis of the Loan Portfolio by the Time Past Due
The following table reflects an aging analysis of the loan portfolio by the time past due at June 30, 2020 and December 31, 2019.
 
(Dollars in thousands)
  30 Days   60 Days   90+ Days   
Non-Accrual
   Current   Total 
As of June 30, 2020
            
Commercial and industrial
  $1,190   $—     $ —     $1,008   $363,683   $365,881 
Real estate - other
   —      —      —      —      508,916    508,916 
Real estate - construction and land
   —      —      —      —      49,524    49,524 
SBA
   —      —      —      235    373,194    373,429 
Other
   —      —      —      —      1,731    1,731 
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total loans, gross
  $1,190   $—     $—     $1,243   $1,297,048   $1,299,481 
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
As of December 31, 2019
            
Commercial and industrial
  $—     $1,440   $—     $2,409   $385,897   $389,746 
Real estate - other
   —      —      —      —      502,929    502,929 
Real estate - construction and land
   —      —      —      —      42,519    42,519 
SBA
   —      —      —      344    12,486    12,830 
Other
   —      —      —      —      1,628    1,628 
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total loans, gross
  $—     $1,440   $—     $2,753   $945,459   $949,652