Loans by Type

9 Months Ended

Sep. 30, 2024

A summary of loans is as follows:


(In thousands)	September 30, 2024		December 31, 2023
Commercial and industrial	$	548,519	$	498,502
Real estate:
Commercial:
Mortgage	119,119		118,371
Construction	9,479		8,233
Faith-based:
Mortgage	376,573		381,368
Construction	24,696		7,790
Other	1		54
Total loans	$	1,078,387	$	1,014,318

The following table presents the aging of loans past due by category at September 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
September 30, 2024
Commercial and industrial	$	548,075	$	444	$	—	$	—	$	—	$	548,519
Real estate
Commercial:
Mortgage	119,119		—		—		—		—		119,119
Construction	9,479		—		—		—		—		9,479
Faith-based:
Mortgage	376,573		—		—		—		—		376,573
Construction	24,696		—		—		—		—		24,696

Other	1		—		—		—		—		1
Total	$	1,077,943	$	444	$	—	$	—	$	—	$	1,078,387
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

The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of September 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
September 30, 2024
Commercial and industrial	$	546,975	$	1,544	$	—	$	548,519
Real estate
Commercial:
Mortgage	115,966		3,153		—		119,119
Construction	9,479		—		—		9,479
Faith-based:
Mortgage	359,805		16,768		—		376,573
Construction	24,696		—		—		24,696

Other	1		—		—		1
Total	$	1,056,922	$	21,465	$	—	$	1,078,387
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.

Loan modifications to borrowers experiencing financial difficulty may be in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, a term extension, or a combination thereof, among other things. There were no loans modified during the nine months ended September 30, 2024. The following table shows the amortized

cost of loans that were both experiencing financial difficulty and modified during the nine months ended September 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	$	—	$	10,709	$	—	$	—	2.07	%








Total	$	—	$	10,709	$	—	$	—	1.03	%

There were two loans modified during the nine months ended September 30, 2023. The terms were extended by periods of two and three years and there was not an interest rate reduction associated with the modifications.

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	$	10,975	$	—	$	—	$	—	$	—








Total	$	10,975	$	—	$	—	$	—	$	—

At September 30, 2024, the Company had no commitments to lend additional funds to borrowers experiencing financial difficulty for which the Company modified the terms of the loans in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension during the current period.

There were no modified loans that had a payment default during the nine months ended September 30, 2024 or 2023 and that had been modified due to the borrower experiencing financial difficulty within the 12 previous months preceding the default.

Upon the Company's determination that a modified loan has subsequently been deemed uncollectible, the loan is written off. There were no loans written off during the nine months ended September 30, 2024 or 2023.

The Company had no loans evaluated for expected credit losses on an individual basis as of September 30, 2024, and December 31, 2023, respectively.

There were no foreclosed loans recorded as other real estate owned as of September 30, 2024 or December 31, 2023.

A summary of the activity in the allowance for credit losses (“ACL”) by category for the nine months ended September 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)	263		(75)		66		104		358

Balance at September 30, 2024	$	5,675	$	1,018	$	6,542	$	212	$	13,447


(1)			For the nine months ended September 30, 2024 and year-ended December 31, 2023, there was a release of credit losses of $3,000 and $100,000, respectively, for unfunded commitments.