Loans by Type (Tables)

9 Months Ended

Sep. 30, 2021

A summary of loan categories is as follows:


(In thousands)	September 30, 2021		December 31, 2020
Commercial and industrial	$	356,532	$	298,984
Real estate:
Commercial:
Mortgage	103,596		100,419
Construction	24,705		25,090
Faith-based:
Mortgage	358,493		333,661
Construction	13,272		23,818
Paycheck Protection Program (“PPP”)	16,307		109,704
Total loans	$	872,905	$	891,676

Schedule of Debt [Table Text Block]

The following table presents the aging of loans past due by category at September 30, 2021 and December 31, 2020:


	Performing						Nonperforming
(In thousands)	Current		30-59 Days		60-89 Days		90 Days and Over		Non- accrual		Total Loans
September 30, 2021
Commercial and industrial	$	356,532	$	—	$	—	$	—	$	—	$	356,532
Real estate
Commercial:
Mortgage	103,596		—		—		—		—		103,596
Construction	24,705		—		—		—		—		24,705
Faith-based:
Mortgage	358,493		—		—		—		—		358,493
Construction	13,272		—		—		—		—		13,272
PPP	16,307		—		—		—		—		16,307
Total	$	872,905	$	—	$	—	$	—	$	—	$	872,905
December 31, 2020
Commercial and industrial	$	298,984	$	—	$	—	$	—	$	—	$	298,984
Real estate
Commercial:
Mortgage	100,419		—		—		—		—		100,419
Construction	25,090		—		—		—		—		25,090
Faith-based:
Mortgage	333,661		—		—		—		—		333,661
Construction	23,818		—		—		—		—		23,818
PPP	109,704		—		—		—		—		109,704
Total	$	891,676	$	—	$	—	$	—	$	—	$	891,676

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 September 30, 2021 and December 31, 2020:


(In thousands)	Loans Subject to Normal Monitoring1		Performing Loans Subject to Special Monitoring2		Nonperforming Loans Subject to Special Monitoring2		Total Loans
September 30, 2021
Commercial and industrial	$	345,652	$	10,880	$	—	$	356,532
Real estate
Commercial:
Mortgage	103,596		—		—		103,596
Construction	24,705		—		—		24,705
Faith-based:
Mortgage	355,530		2,963		—		358,493
Construction	13,272		—		—		13,272
PPP	16,307		—		—		16,307
Total	$	859,062	$	13,843	$	—	$	872,905
December 31, 2020
Commercial and industrial	$	284,882	$	14,102	$	—	$	298,984
Real estate
Commercial:
Mortgage	99,044		1,375		—		100,419
Construction	25,090		—		—		25,090
Faith-based:
Mortgage	330,554		3,107		—		333,661
Construction	23,818		—		—		23,818
PPP	109,704		—		—		109,704
Total	$	873,092	$	18,584	$	—	$	891,676


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.

Schedule of Debtor Troubled Debt Restructuring, Current Period

The recorded investment by category for loans considered a troubled debt restructuring during the year ended December 31, 2020 is as follows:


(In thousands)	Number of Loans	Pre-Modification Outstanding Balance		Post-Modification Outstanding Balance
Commercial and industrial	1	$	8,773	$	8,773
Faith-based real estate	1	1,029		1,029
Total	2	$	9,802	$	9,802

Summary of ACL by Category

A summary of the activity in allowance for credit losses (“ACL”) by category for the periods ended September 30, 2021 and December 31, 2020 is as follows:


(In thousands)	C&I		CRE		Faith-based CRE		Construction		Total
Allowance for credit losses on loans:
Balance at December 31, 2020	$	4,635	$	1,175	$	5,717	$	417	$	11,944
Charge Offs	—		—		—		—		—
(Release of) provision for credit losses	(289)		(99)		76		(128)		(440)
Recoveries	13		—		15		—		28
Balance at September 30, 2021	$	4,359	$	1,076	$	5,808	$	289	$	11,532

The release of credit losses during the nine months ended September 30, 2021 is primarily due to improved economic conditions and the removal of specific allowances for credit losses on impaired loans.


(In thousands)	C&I		CRE		Faith-based CRE		Construction		Total
Allowance for credit losses on loans:
Balance at December 31, 2019	$	4,874	$	1,528	$	3,842	$	312	$	10,556
Cumulative effect of accounting change (ASU 2016-13)	(526)		(401)		1,636		14		723
Balance at January 1, 2020	4,348		1,127		5,478		326		11,279
Provision for credit losses	268		48		238		91		645
Recoveries	19		—		1		—		20
Balance at December 31, 2020	$	4,635	$	1,175	$	5,717	$	417	$	11,944