Loans by Type (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Summary of Loan Categories

A summary of loans is as follows:

(In thousands)	June 30, 2024		December 31, 2023
Commercial and industrial	$	548,625	$	498,502
Real estate:
Commercial:
Mortgage	121,701		118,371
Construction	9,488		8,233
Faith-based:
Mortgage	371,313		381,368
Construction	10,861		7,790
Other	3		54
Total loans	$	1,061,991	$	1,014,318

Schedule of Debt

The following table presents the aging of loans past due by category at June 30, 2024 and December 31, 2023:

	Performing						Nonperforming
(In thousands)	Current		30-59 Days		60-89 Days		90 Days and Over		Non- accrual		Total Loans
June 30, 2024
Commercial and industrial	$	548,625	$	—	$	—	$	—	$	—	$	548,625
Real estate
Commercial:
Mortgage	121,701		—		—		—		—		121,701
Construction	9,488		—		—		—		—		9,488
Faith-based:
Mortgage	371,313		—		—		—		—		371,313
Construction	10,861		—		—		—		—		10,861
Other	3		—		—		—		—		3
Total	$	1,061,991	$	—	$	—	$	—	$	—	$	1,061,991
December 31, 2023
Commercial and industrial	$	498,502	$	—	$	—	$	—	$	—	$	498,502
Real estate
Commercial:
Mortgage	118,371		—		—		—		—		118,371
Construction	8,233		—		—		—		—		8,233
Faith-based:
Mortgage	381,368		—		—		—		—		381,368
Construction	7,790		—		—		—		—		7,790
Other	54		—		—		—		—		54
Total	$	1,014,318	$	—	$	—	$	—	$	—	$	1,014,318

Schedule of Credit Exposure of the Loan Portfolio

The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of June 30, 2024 and December 31, 2023:

(In thousands)	Loans Subject to Normal Monitoring1		Performing Loans Subject to Special Monitoring2		Nonperforming Loans Subject to Special Monitoring2		Total Loans
June 30, 2024
Commercial and industrial	$	548,625	$	—	$	—	$	548,625
Real estate
Commercial:
Mortgage	119,223		2,478		—		121,701
Construction	9,488		—		—		9,488
Faith-based:
Mortgage	356,353		14,960		—		371,313
Construction	10,861		—		—		10,861
Other	3		—		—		3
Total	$	1,044,553	$	17,438	$	—	$	1,061,991
December 31, 2023
Commercial and industrial	$	498,502	$	—	$	—	$	498,502
Real estate
Commercial:
Mortgage	118,371		—		—		118,371
Construction	8,233		—		—		8,233
Faith-based:
Mortgage	375,865		5,503		—		381,368
Construction	7,790		—		—		7,790
Other	54		—		—		54
Total	$	1,008,815	$	5,503	$	—	$	1,014,318

1 Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligations.

2 Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention.

Financing Receivable, Troubled Debt Restructuring

The following table shows the amortized

cost of loans that were both experiencing financial difficulty and modified during the six-month period ended June 30, 2023, segregated by category and type of modification.

(In thousands)	Payment Delay		Term Extension		Interest Rate Reduction		Combination Term Extension and Interest Rate Reduction		Percentage of Total Loans Held for Investment
Commercial and industrial	$	—	$	10,952	$	—	$	—	2.05	%
Total	$	—	$	10,952	$	—	$	—	1.04	%

The following table shows the payment status of loans that have been modified to borrowers experiencing financial difficulty in the last twelve months:

(In thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due
Commercial and industrial	$	11,333	$	—	$	—	$	—	$	—
Total	$	11,333	$	—	$	—	$	—	$	—

Summary of ACL by Category

A summary of the activity in the allowance for credit losses (“ACL”) by category for the six-month periods ended June 30, 2024 and year-ended December 31, 2023 is as follows:

(In thousands)	C&I		CRE		Faith-based CRE		Construction		Total
Balance at December 31, 2022	$	5,978	$	940	$	6,437	$	184	$	13,539
(Release of) provision for credit losses	(566)		153		39		(76)		(450)
Balance at December 31, 2023	$	5,412	$	1,093	$	6,476	$	108	$	13,089
Provision for (release of) credit losses (1)	502		23		(11)		31		545
Balance at June 30, 2024	$	5,914	$	1,116	$	6,465	$	139	$	13,634

(1) For the six-month period ended June 30, 2024 and year-ended December 31, 2023, there was a release of credit losses of $50,000 and $100,000, respectively, for unfunded commitments.