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Loans and Allowance For Loan Losses (Tables)

6 Months Ended

Jun. 30, 2021

Loans and Leases Receivable Disclosure [Line Items]

Outstanding loans as of June 30, 2021 and December 31, 2020 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 under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which was enacted as a result of the

COVID-19

pandemic (see Note 7).


	June 30,			December 31,
(Dollars in thousands)	2021			2020
Commercial and industrial	$	425,643		$	414,548
Real estate - other		616,451			550,690
Real estate - construction and land		41,558			37,193
SBA		204,734			317,564
Other		64,253			49,075

Total loans, gross		1,352,639			1,369,070
Deferred loan origination (fees)/costs, net		(629	)		523
Allowance for loan losses		(13,240	)		(14,111	)

Total loans, net	$	1,338,770		$	1,355,482

Summary of Information Related to Impaired Loans

The following table reflects information related to impaired loans as of June 30, 2021 and December 31, 2020.


(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
As of June 30, 2021
With no related allowance recorded:
Real estate - other	$	1,000	$	1,000	$	—	$	1,000	$	9
SBA	$	234	$	757	$	—	$	2,282	$	18
With an allowance recorded:
Commercial and industrial	$	1,163	$	1,163	$	19	$	1,041	$	26
Total:
Commercial and industrial	$	1,163	$	1,163	$	19	$	1,041	$	26
Real estate - other	$	1,000	$	1,000	$	—	$	1,000	$	9
SBA	$	234	$	757	$	—	$	2,282	$	18
As of December 31, 2020
With no related allowance recorded:
SBA	$	234	$	479	$	—	$	1,917	$	—
With an allowance recorded:
Commercial and industrial	$	2,288	$	2,288	$	41	$	2,137	$	148
SBA	$	455	$	455	$	259	$	3,921	$	57
Total:
Commercial and industrial	$	2,288	$	2,288	$	41	$	2,137	$	148
SBA	$	689	$	934	$	259	$	5,838	$	57

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, 2021 and December 31, 2020.


	Commercial				Real Estate
	and		Real Estate		Construction
(Dollars in thousands)	Industrial		Other		and Land		SBA		Other		Total
As of June 30, 2021
Gross loans:
Loans individually evaluated for impairment	$	1,163	$	1,000	$	—	$	234	$	—	$	2,397
Loans collectively evaluated for impairment		424,480		615,451		41,558		204,500		64,253		1,350,242

Total gross loans	$	425,643	$	616,451	$	41,558	$	204,734	$	64,253	$	1,352,639

Allowance for loan losses:
Loans individually evaluated for impairment	$	19	$	—	$	—	$	—	$	—	$	19
Loans collectively evaluated for impairment		8,114		4,069		697		317		24		13,221

Total allowance for loan losses	$	8,133	$	4,069	$	697	$	317	$	24	$	13,240

As of December 31, 2020
Gross loans:
Loans individually evaluated for impairment	$	2,288	$	—	$	—	$	689	$	—	$	2,977
Loans collectively evaluated for impairment		412,260		550,690		37,193		316,875		49,075		1,366,093

Total loans	$	414,548	$	550,690	$	37,193	$	317,564	$	49,075	$	1,369,070

Allowance for loan losses:
Loans individually evaluated for impairment	$	41	$	—	$	—	$	259	$	—	$	300
Loans collectively evaluated for impairment		8,882		3,877		681		345		26		13,811

Total allowance for loan losses	$	8,923	$	3,877	$	681	$	604	$	26	$	14,111

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, 2021 and June 30, 2020.


(Dollars in thousands)	Commercial and Industrial			Real Estate Other		Real Estate Construction and Land			SBA			Other			Total
Three months ended June 30, 2021
Beginning balance	$	9,231		$	3,957	$	798		$	575		$	16		$	14,577
Provision for loan losses		(1,139	)		112		(101	)		20			8			(1,100	)
Charge-offs		—			—		—			(278	)		—			(278	)
Recoveries		41			—		—			—			—			41

Ending balance	$	8,133		$	4,069	$	697		$	317		$	24		$	13,240

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

Six months ended June 30, 2021
Beginning balance	$	8,923		$	3,877	$	681		$	604		$	26		$	14,111
Provision for loan losses		(997	)		192		16			(9	)		(2	)		(800	)
Charge-offs		—			—		—			(278	)		—			(278	)
Recoveries		207			—		—			—			—			207

Ending balance	$	8,133		$	4,069	$	697		$	317		$	24		$	13,240

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

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, 2021 and December 31, 2020.


	Commercial				Real Estate
	and		Real Estate		Construction
(Dollars in thousands)	Industrial		Other		and Land		SBA		Other		Total
As of June 30, 2021
Grade:
Pass	$	409,874	$	604,110	$	37,576	$	203,031	$	64,253	$	1,318,844
Special Mention		13,026		3,777		1,297		564		—		18,664
Substandard		2,743		8,564		2,685		1,139		—		15,131

Total	$	425,643	$	616,451	$	41,558	$	204,734	$	64,253	$	1,352,639

As of December 31, 2020
Grade:
Pass	$	401,629	$	540,153	$	34,543	$	315,277	$	49,075	$	1,340,677
Special Mention		9,013		2,911		872		859		—		13,655
Substandard		3,906		7,626		1,778		1,428		—		14,738

Total	$	414,548	$	550,690	$	37,193	$	317,564	$	49,075	$	1,369,070

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, 2021 and December 31, 2020.


(Dollars in thousands)	30 Days		60 Days		90+ Days		Non-Accrual		Current		Total
As of June 30, 2021
Commercial and industrial	$	—	$	—	$	—	$	—	$	425,643	$	425,643
Real estate - other		621		—		—		1,000		614,830		616,451
Real estate - construction and land		—		—		—		—		41,558		41,558
SBA		188		—		—		234		204,312		204,734
Other		—		—		—		—		64,253		64,253

Total loans, gross	$	1,372	$	—	$	—	$	1,234	$	1,350,033	$	1,352,639

As of December 31, 2020
Commercial and industrial	$	—	$	—	$	—	$	—	$	414,548	$	414,548
Real estate - other		1,505		—		—		—		549,185		550,690
Real estate - construction and land		—		—		—		—		37,193		37,193
SBA		—		—		—		234		317,330		317,564
Other		—		—		—		—		49,075		49,075

Total loans, gross	$	1,505	$	—	$	—	$	234	$	1,367,331	$	1,369,070