Loans (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2017 and December 31, 2016:



(In thousands)	June 30, 2017		December 31, 2016
SBA loans held for investment	$	43,329	$	42,492
SBA 504 loans	23,153		26,344
Commercial loans
Commercial other	65,551		58,447
Commercial real estate	443,564		422,418
Commercial real estate construction	36,193		28,306
Residential mortgage loans	315,396		289,093
Consumer loans
Home equity	54,524		47,411
Consumer other	51,144		44,130
Total loans held for investment	$	1,032,854	$	958,641
SBA loans held for sale	13,950		14,773
Total loans	$	1,046,804	$	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 June 30, 2017:



	June 30, 2017
	SBA, SBA 504 & Commercial loans - Internal risk ratings
(In thousands)	Pass		Special mention		Substandard		Total
SBA loans held for investment	$	40,568	$	1,394	$	1,367	$	43,329
SBA 504 loans	21,999		1,049		105		23,153
Commercial loans
Commercial other	64,357		350		844		65,551
Commercial real estate	438,888		4,157		519		443,564
Commercial real estate construction	35,443		750		—		36,193
Total commercial loans	538,688		5,257		1,363		545,308
Total SBA, SBA 504 and commercial loans	$	601,255	$	7,700	$	2,835	$	611,790

	Residential mortgage & Consumer loans - Performing/Nonperforming
(In thousands)			Performing		Nonperforming		Total
Residential mortgage loans			$	313,714	$	1,682	$	315,396
Consumer loans
Home equity			53,806		718		54,524
Consumer other			49,163		1,981		51,144
Total consumer loans			102,969		2,699		105,668
Total residential mortgage and consumer loans			$	416,683	$	4,381	$	421,064

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 June 30, 2017 and December 31, 2016:



	June 30, 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	$	1,078	$	—	$	230	$	889	$	2,197	$	41,132	$	43,329
SBA 504 loans	—		—		—		—		—		23,153		23,153
Commercial loans
Commercial other	—		—		—		25		25		65,526		65,551
Commercial real estate	3,540		808		—		386		4,734		438,830		443,564
Commercial real estate construction	—		—		—		—		—		36,193		36,193
Residential mortgage loans	2,330		—		—		1,682		4,012		311,384		315,396
Consumer loans
Home equity	24		240		—		718		982		53,542		54,524
Consumer other	—		—		—		1,981		1,981		49,163		51,144
Total loans held for investment	$	6,972	$	1,048	$	230	$	5,681	$	13,931	$	1,018,923	$	1,032,854
SBA loans held for sale	—		—		—		—		—		13,950		13,950
Total loans	$	6,972	$	1,048	$	230	$	5,681	$	13,931	$	1,032,873	$	1,046,804


(1)	At June 30, 2017, nonaccrual loans included $41 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 June 30, 2017:



	June 30, 2017
(In thousands)	Unpaid principal balance		Recorded investment		Specific reserves
With no related allowance:
SBA loans held for investment (1)	$	846	$	455	$	—
Commercial loans
Commercial other	25		25		—
Commercial real estate	43		43		—
Total commercial loans	68		68		—
Total impaired loans with no related allowance	914		523		—

With an allowance:
SBA loans held for investment (1)	943		393		149
Commercial loans
Commercial real estate	343		343		19
Total commercial loans	343		343		19
Total impaired loans with a related allowance	1,286		736		168

Total individually evaluated impaired loans:
SBA loans held for investment (1)	1,789		848		149
Commercial loans
Commercial other	25		25		—
Commercial real estate	386		386		19
Total commercial loans	411		411		19
Total individually evaluated impaired loans	$	2,200	$	1,259	$	168


(1)	Balances are reduced by amount guaranteed by the SBA of $41 thousand at June 30, 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		1		1
Commercial real estate	358		357		33
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		26		1
Commercial real estate	400		400		33
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 [Table Text Block]

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 and six months ended June 30, 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 nominal amounts of income recognized on a cash basis for well-collateralized impaired loans.



	For the three months ended June 30,
	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)	$	989	$	22	$	1,640	$	1
SBA 504 loans	—		—		513		—
Commercial loans
Commercial other	25		—		929		14
Commercial real estate	921		—		1,273		19
Commercial real estate construction	—		—		339		—
Total	$	1,935	$	22	$	4,694	$	34


(1)	Balances are reduced by the average amount guaranteed by the SBA of $54 thousand and $218 thousand for the three months ended June 30, 2017 and 2016, respectively.



	For the six months ended June 30,
	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)	$	993	$	19	$	1,822	$	3
SBA 504 loans	165		—		1,082		—
Commercial loans
Commercial other	25		—		496		38
Commercial real estate	1,027		22		1,662		31
Commercial real estate construction	—		—		288		—
Total	$	2,210	$	41	$	5,350	$	72


(1)	Balances are reduced by the average amount guaranteed by the SBA of $151 thousand and $241 thousand for the six months ended June 30, 2017 and 2016, respectively.