Loans (Tables)

3 Months Ended

Mar. 31, 2017

Loans and Leases Receivable Disclosure [Abstract]

The following table sets forth the classification of loans by class, including unearned fees, deferred costs and excluding the allowance for loan losses as of March 31, 2017 and December 31, 2016:



(In thousands)	March 31, 2017		December 31, 2016
SBA loans held for investment	$	42,403	$	42,492
SBA 504 loans	25,111		26,344
Commercial loans
Commercial other	60,381		58,447
Commercial real estate	425,581		422,418
Commercial real estate construction	33,376		28,306
Residential mortgage loans	305,578		289,093
Consumer loans
Home equity	49,295		47,411
Consumer other	46,789		44,130
Total loans held for investment	$	988,514	$	958,641
SBA loans held for sale	12,163		14,773
Total loans	$	1,000,677	$	973,414

Loan Portfolio by Class According to Credit Quality Indicators

The tables below detail the Company’s loan portfolio by class according to their credit quality indicators discussed in the paragraphs above as of March 31, 2017:



	March 31, 2017
	SBA, SBA 504 & Commercial loans - Internal risk ratings
(In thousands)	Pass		Special mention		Substandard		Total
SBA loans held for investment	$	39,549	$	1,458	$	1,396	$	42,403
SBA 504 loans	23,698		1,061		352		25,111
Commercial loans
Commercial other	59,115		293		973		60,381
Commercial real estate	417,916		6,763		902		425,581
Commercial real estate construction	32,626		750		—		33,376
Total commercial loans	509,657		7,806		1,875		519,338
Total SBA, SBA 504 and commercial loans	$	572,904	$	10,325	$	3,623	$	586,852

	Residential mortgage & Consumer loans - Performing/Nonperforming
(In thousands)			Performing		Nonperforming		Total
Residential mortgage loans			$	303,064	$	2,514	$	305,578
Consumer loans
Home equity			49,001		294		49,295
Consumer other			44,814		1,975		46,789
Total consumer loans			93,815		2,269		96,084
Total residential mortgage and consumer loans			$	396,879	$	4,783	$	401,662

The tables below detail the Company’s loan portfolio by class according to their credit quality indicators discussed in the paragraphs above as of December 31, 2016:



	December 31, 2016
	SBA, SBA 504 & Commercial loans - Internal risk ratings
(In thousands)	Pass		Special mention		Substandard		Total
SBA loans held for investment	$	38,990	$	2,023	$	1,479	$	42,492
SBA 504 loans	24,635		1,073		636		26,344
Commercial loans
Commercial other	57,000		1,422		25		58,447
Commercial real estate	408,288		13,729		401		422,418
Commercial real estate construction	27,556		750		—		28,306
Total commercial loans	492,844		15,901		426		509,171
Total SBA, SBA 504 and commercial loans	$	556,469	$	18,997	$	2,541	$	578,007

	Residential mortgage & Consumer loans - Performing/Nonperforming
(In thousands)			Performing		Nonperforming		Total
Residential mortgage loans			$	286,421	$	2,672	$	289,093
Consumer loans
Home equity			46,929		482		47,411
Consumer other			42,154		1,976		44,130
Total consumer loans			89,083		2,458		91,541
Total residential mortgage and consumer loans			$	375,504	$	5,130	$	380,634

Aging Analysis of Past Due and Nonaccrual Loans by Loan Class

The following tables set forth an aging analysis of past due and nonaccrual loans as of March 31, 2017 and December 31, 2016:



	March 31, 2017
(In thousands)	30-59 days past due		60-89 days past due		90+ days and still accruing		Nonaccrual (1)		Total past due		Current		Total loans
SBA loans held for investment	$	281	$	—	$	—	$	1,239	$	1,520	$	40,883	$	42,403
SBA 504 loans	—		—		—		237		237		24,874		25,111
Commercial loans
Commercial other	70		—		—		25		95		60,286		60,381
Commercial real estate	—		2,046		—		1,474		3,520		422,061		425,581
Commercial real estate construction	28		—		—		—		28		33,348		33,376
Residential mortgage loans	2,161		1,854		—		2,514		6,529		299,049		305,578
Consumer loans
Home equity	485		—		—		294		779		48,516		49,295
Consumer other	—		—		—		1,975		1,975		44,814		46,789
Total loans held for investment	$	3,025	$	3,900	$	—	$	7,758	$	14,683	$	973,831	$	988,514
SBA loans held for sale	—		—		—		—		—		12,163		12,163
Total loans	$	3,025	$	3,900	$	—	$	7,758	$	14,683	$	985,994	$	1,000,677


(1)	At March 31, 2017, nonaccrual loans included $60 thousand of loans guaranteed by the SBA.



	December 31, 2016
(In thousands)	30-59 days past due		60-89 days past due		90+ days and still accruing		Nonaccrual (1)		Total past due		Current		Total loans
SBA loans held for investment	$	491	$	397	$	—	$	1,168	$	2,056	$	40,436	$	42,492
SBA 504 loans	—		—		—		513		513		25,831		26,344
Commercial loans
Commercial other	50		—		—		25		75		58,372		58,447
Commercial real estate	1,108		574		—		401		2,083		420,335		422,418
Commercial real estate construction	—		—		—		—		—		28,306		28,306
Residential mortgage loans	2,932		263		—		2,672		5,867		283,226		289,093
Consumer loans
Home equity	227		—		—		482		709		46,702		47,411
Consumer other	—		—		—		1,976		1,976		42,154		44,130
Total loans held for investment	$	4,808	$	1,234	$	—	$	7,237	$	13,279	$	945,362	$	958,641
SBA loans held for sale	—		—		—		—		—		14,773		14,773
Total loans	$	4,808	$	1,234	$	—	$	7,237	$	13,279	$	960,135	$	973,414


(1)	At December 31, 2016, nonaccrual loans included $153 thousand of TDRs and $60 thousand of loans guaranteed by the SBA.

Impaired Loans with Associated Allowance Amount

The following table provides detail on the Company’s impaired loans that are individually evaluated for impairment with the associated allowance amount, if applicable, as of March 31, 2017:



	March 31, 2017
(In thousands)	Unpaid principal balance		Recorded investment		Specific reserves
With no related allowance:
SBA loans held for investment (1)	$	948	$	606	$	—
SBA 504 loans	237		237		—
Commercial loans
Commercial other	25		25		—
Commercial real estate	1,131		1,131		—
Total commercial loans	1,156		1,156		—
Total impaired loans with no related allowance	2,341		1,999		—

With an allowance:
SBA loans held for investment (1)	1,098		573		277
Commercial loans
Commercial other	13		—		—
Commercial real estate	343		343		19
Total commercial loans	356		343		19
Total impaired loans with a related allowance	1,454		916		296

Total individually evaluated impaired loans:
SBA loans held for investment (1)	2,046		1,179		277
SBA 504 loans	237		237		—
Commercial loans
Commercial other	38		25		—
Commercial real estate	1,474		1,474		19
Total commercial loans	1,512		1,499		19
Total individually evaluated impaired loans	$	3,795	$	2,915	$	296


(1)	Balances are reduced by amount guaranteed by the SBA of $60 thousand at March 31, 2017.

The following table provides detail on the Company’s impaired loans that are individually evaluated for impairment with the associated allowance amount, if applicable, as of December 31, 2016:



	December 31, 2016
(In thousands)	Unpaid principal balance		Recorded investment		Specific reserves
With no related allowance:
SBA loans held for investment (1)	$	1,235	$	653	$	—
SBA 504 loans	513		513		—
Commercial loans
Commercial other	25		25		—
Commercial real estate	42		43		—
Total commercial loans	67		68		—
Total impaired loans with no related allowance	1,815		1,234		—

With an allowance:
SBA loans held for investment (1)	975		455		246
Commercial loans
Commercial other	13		—		—
Commercial real estate	358		358		34
Total commercial loans	371		358		34
Total impaired loans with a related allowance	1,346		813		280

Total individually evaluated impaired loans:
SBA loans held for investment (1)	2,210		1,108		246
SBA 504 loans	513		513		—
Commercial loans
Commercial other	38		25		—
Commercial real estate	400		401		34
Total commercial loans	438		426		34
Total individually evaluated impaired loans	$	3,161	$	2,047	$	280


(1)	Balances are reduced by amount guaranteed by the SBA of $60 thousand at December 31, 2016.

Average Recorded Investments in Impaired Loans and Related Amount of Interest Recognized

The following tables present the average recorded investments in impaired loans and the related amount of interest recognized during the time period in which the loans were impaired for the three months ended March 31, 2017 and 2016. The average balances are calculated based on the month-end balances of impaired loans. When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal under the cost recovery method, and therefore no interest income is recognized. The interest income recognized on impaired loans noted below represents primarily accruing TDRs and nominal amounts of income recognized on a cash basis for well-collateralized impaired loans.



	For the three months ended March 31,
	2017					2016
(In thousands)	Average recorded investment		Interest income recognized on impaired loans			Average recorded investment		Interest income recognized on impaired loans
SBA loans held for investment (1)	$	998	$	(6	)	$	2,004	$	2
SBA 504 loans	329		—			1,652		—
Commercial loans
Commercial other	25		—			62		25
Commercial real estate	1,133		22			2,052		13
Commercial real estate construction	—		—			238		—
Total	$	2,485	$	16		$	6,008	$	40


(1)	Balances are reduced by the average amount guaranteed by the SBA of $248 thousand and $265 thousand for the three months ended March 31, 2017 and 2016, respectively.