Loans (Tables)

12 Months Ended

Dec. 31, 2018

Loans and Leases Receivable Disclosure [Abstract]

Classification of Loans By Class

The following table sets forth the classification of loans by class, including unearned fees, deferred costs and excluding the allowance for loan losses for the past two years:

(In thousands)	December 31, 2018		December 31, 2017
SBA loans held for investment	$	39,333	$	43,999
Commercial loans
SBA 504 loans	29,155		21,871
Commercial other	104,587		82,825
Commercial real estate	510,370		469,696
Commercial real estate construction	49,990		54,473
Residential mortgage loans	436,056		365,145
Consumer loans
Home equity	59,887		55,817
Consumer other	64,017		54,038
Total loans held for investment	$	1,293,395	$	1,147,864
SBA loans held for sale	11,171		22,810
Total loans	$	1,304,566	$	1,170,674

Loan Portfolio by Class According to Their 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 December 31, 2018:

	December 31, 2018
	SBA & Commercial loans - Internal risk ratings
(In thousands)	Pass		Special mention		Substandard		Total
SBA loans held for investment	$	37,198	$	601	$	1,534	$	39,333
Commercial loans
SBA 504 loans	28,105		—		1,050		29,155
Commercial other	103,806		322		459		104,587
Commercial real estate	504,022		2,879		3,469		510,370
Commercial real estate construction	49,990		—		—		49,990
Total commercial loans	685,923		3,201		4,978		694,102
Total SBA and commercial loans	$	723,121	$	3,802	$	6,512	$	733,435
	Residential mortgage & Consumer loans - Performing/Nonperforming
(In thousands)			Performing		Nonperforming		Total
Residential mortgage loans			$	431,845	$	4,211	$	436,056
Consumer loans
Home equity			59,861		26		59,887
Consumer other			64,017		—		64,017
Total consumer loans			123,878		26		123,904
Total residential mortgage and consumer loans			$	555,723	$	4,237	$	559,960

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, 2017: 

	December 31, 2017
	SBA & Commercial loans - Internal risk ratings
(In thousands)	Pass		Special mention		Substandard		Total
SBA loans held for investment	$	42,415	$	373	$	1,211	$	43,999
Commercial loans
SBA 504 loans	20,751		1,024		96		21,871
Commercial other	82,201		599		25		82,825
Commercial real estate	464,589		3,047		2,060		469,696
Commercial real estate construction	54,473		—		—		54,473
Total commercial loans	622,014		4,670		2,181		628,865
Total SBA and commercial loans	$	664,429	$	5,043	$	3,392	$	672,864
	Residential mortgage & Consumer loans - Performing/Nonperforming
(In thousands)			Performing		Nonperforming		Total
Residential mortgage loans			$	363,476	$	1,669	$	365,145
Consumer loans
Home equity			55,192		625		55,817
Consumer other			54,038		—		54,038
Total consumer loans			109,230		625		109,855
Total residential mortgage and consumer loans			$	472,706	$	2,294	$	475,000

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 December 31, 2018 and December 31, 2017:

	December 31, 2018
(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	$	—	$	—	$	—	$	1,560	$	1,560	$	37,773	$	39,333
Commercial loans
SBA 504 loans	—		—		—		—		—		29,155		29,155
Commercial other	—		—		—		30		30		104,557		104,587
Commercial real estate	301		—		—		1,046		1,347		509,023		510,370
Commercial real estate construction	—		—		—		—		—		49,990		49,990
Residential mortgage loans	3,801		1,204		98		4,211		9,314		426,742		436,056
Consumer loans
Home equity	396		—		—		26		422		59,465		59,887
Consumer other	300		—		—		—		300		63,717		64,017
Total loans held for investment	$	4,798	$	1,204	$	98	$	6,873	$	12,973	$	1,280,422	$	1,293,395
SBA loans held for sale	—		—		—		—		—		11,171		11,171
Total loans	$	4,798	$	1,204	$	98	$	6,873	$	12,973	$	1,291,593	$	1,304,566

(1) At December 31, 2018, nonaccrual loans included $89 thousand of loans guaranteed by the SBA.

	December 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	$	240	$	313	$	—	$	632	$	1,185	$	42,814	$	43,999
Commercial loans
SBA 504 loans	—		—		—		—		—		21,871		21,871
Commercial other	23		—		60		25		108		82,717		82,825
Commercial real estate	558		1,073		—		43		1,674		468,022		469,696
Commercial real estate construction	—		—		—		—		—		54,473		54,473
Residential mortgage loans	1,830		958		—		1,669		4,457		360,688		365,145
Consumer loans
Home equity	51		205		—		625		881		54,936		55,817
Consumer other	3		—		—		—		3		54,035		54,038
Total loans held for investment	$	2,705	$	2,549	$	60	$	2,994	$	8,308	$	1,139,556	$	1,147,864
SBA loans held for sale	—		—		—		—		—		22,810		22,810
Total loans	$	2,705	$	2,549	$	60	$	2,994	$	8,308	$	1,162,366	$	1,170,674

(1) At December 31, 2017, nonaccrual loans included $27 thousand of loans guaranteed by the SBA. 

Impaired Loans with Associated Allowance Amount

The following tables provide detail on the Company’s loans individually evaluated for impairment with the associated allowance amount, if applicable, as of December 31, 2018 and December 31, 2017: 

	December 31, 2018
(In thousands)	Unpaid principal balance		Recorded investment		Specific reserves
With no related allowance:
SBA loans held for investment (1)	$	359	$	353	$	—
Commercial loans
Commercial real estate	1,046		1,046		—
Total commercial loans	1,046		1,046		—
Total impaired loans with no related allowance	1,405		1,399		—
With an allowance:
SBA loans held for investment (1)	1,257		1,118		540
Commercial loans
Commercial other	30		30		30
Commercial real estate	745		745		97
Total commercial loans	775		775		127
Total impaired loans with a related allowance	2,032		1,893		667
Total individually evaluated impaired loans:
SBA loans held for investment (1)	1,616		1,471		540
Commercial loans
Commercial other	30		30		30
Commercial real estate	1,791		1,791		97
Total commercial loans	1,821		1,821		127
Total individually evaluated impaired loans	$	3,437	$	3,292	$	667

(1) Balances are reduced by amount guaranteed by the SBA of $89 thousand at December 31, 2018.

	December 31, 2017
(In thousands)	Unpaid principal balance		Recorded investment		Specific reserves
With no related allowance:
SBA loans held for investment (1)	$	135	$	52	$	—
Commercial loans
Commercial other	25		25		—
Commercial real estate	43		43		—
Total commercial loans	68		68		—
Total impaired loans with no related allowance	203		120		—
With an allowance:
SBA loans held for investment (1)	748		553		194
Commercial loans
Commercial real estate	786		786		138
Total commercial loans	786		786		138
Total impaired loans with a related allowance	1,534		1,339		332
Total individually evaluated impaired loans:
SBA loans held for investment (1)	883		605		194
Commercial loans
Commercial other	25		25		—
Commercial real estate	829		829		138
Total commercial loans	854		854		138
Total individually evaluated impaired loans	$	1,737	$	1,459	$	332

(1) Balances are reduced by amount guaranteed by the SBA of $27 thousand at December 31, 2017.

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

The following table presents 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 years ended December 31, 2018, 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, therefore no interest income is recognized.  The interest recognized on impaired loans noted below represents accruing troubled debt restructurings only and nominal amounts of income recognized on a cash basis for well-collateralized impaired loans. 

	For the years ended December 31,
	2018				2017				2016
(In thousands)	Average recorded investment		Interest income recognized on impaired loans		Average recorded investment		Interest income recognized on impaired loans		Average recorded investment		Interest income recognized on impaired loans
SBA loans held for investment (1)	$	1,063	$	3	$	668	$	47	$	1,535	$	14
Commercial loans
SBA 504 loans	—		—		82		—		798		—
Commercial other	12		—		25		—		607		38
Commercial real estate	2,092		100		685		43		1,198		59
Commercial real estate construction	—		—		—		—		272		—
Total	$	3,167	$	103	$	1,460	$	90	$	4,410	$	111

(1) Balances are reduced by the average amount guaranteed by the SBA of $85 thousand, $318 thousand and $246 thousand for years ended December 31, 2018, 2017 and 2016, respectively.

Schedule of Servicing Assets

A summary of the changes in the related servicing assets for the past three years follows:

	For the years ended December 31,
(In thousands)	2018			2017			2016
Balance, beginning of year	$	1,800		$	2,086		$	1,389
Servicing assets capitalized	939			172			1,472
Amortization of expense	(364		)	(458		)	(775		)
Balance, end of year	$	2,375		$	1,800		$	2,086

Schedule of Related Party Transactions

An analysis of such loans, all of which are current as to principal and interest payments, is as follows: 

(In thousands)	December 31, 2018			December 31, 2017
Balance, beginning of year	$	33,109		$	29,256
New loans and advances	4,083			6,121
Loan repayments	(14,763		)	(2,268		)
Balance, end of year	$	22,429		$	33,109