Loans (Tables)

12 Months Ended

Dec. 31, 2019

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, 2019		December 31, 2018
SBA loans held for investment	$	35,767	$	39,333
Commercial loans
SBA 504 loans	26,726		29,155
Commercial other	112,014		104,587
Commercial real estate	578,643		510,370
Commercial real estate construction	47,649		49,990
Residential mortgage loans	467,706		436,056
Consumer loans
Home equity	69,589		59,887
Consumer other	73,935		64,017
Total loans held for investment	$	1,412,029	$	1,293,395
SBA loans held for sale	13,529		11,171
Total loans	$	1,425,558	$	1,304,566

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, 2019:

	December 31, 2019
	SBA & Commercial loans - Internal risk ratings
(In thousands)	Pass		Special mention		Substandard		Total
SBA loans held for investment	$	34,202	$	1,115	$	450	$	35,767
Commercial loans
SBA 504 loans	24,878		1,808		40		26,726
Commercial other	107,220		3,361		1,433		112,014
Commercial real estate	576,326		758		1,559		578,643
Commercial real estate construction	47,649		—		—		47,649
Total commercial loans	756,073		5,927		3,032		765,032
Total SBA and commercial loans	$	790,275	$	7,042	$	3,482	$	800,799
	Residential mortgage & Consumer loans - Performing/Nonperforming
(In thousands)			Performing		Nonperforming		Total
Residential mortgage loans			$	463,770	$	3,936	$	467,706
Consumer loans
Home equity			69,589		—		69,589
Consumer other			73,915		20		73,935
Total consumer loans			143,504		20		143,524
Total residential mortgage and consumer loans			$	607,274	$	3,956	$	611,230

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

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, 2019 and December 31, 2018:

	December 31, 2019
(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	$	1,048	$	—	$	—	$	1,164	$	2,212	$	33,555	$	35,767
Commercial loans
SBA 504 loans	—		1,808		—		—		1,808		24,918		26,726
Commercial other	71		—		—		316		387		111,627		112,014
Commercial real estate	215		—		—		213		428		578,215		578,643
Commercial real estate construction	—		—		—		—		—		47,649		47,649
Residential mortgage loans	4,383		1,676		930		3,936		10,925		456,781		467,706
Consumer loans
Home equity	1,446		178		—		—		1,624		67,965		69,589
Consumer other	—		113		—		20		133		73,802		73,935
Total loans held for investment	$	7,163	$	3,775	$	930	$	5,649	$	17,517	$	1,394,512	$	1,412,029
SBA loans held for sale	—		—		—		—		—		13,529		13,529
Total loans	$	7,163	$	3,775	$	930	$	5,649	$	17,517	$	1,408,041	$	1,425,558

(1) At December 31, 2019, nonaccrual loans included $59 thousand of loans guaranteed by the SBA.

	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. 

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, 2019 and December 31, 2018: 

	December 31, 2019
(In thousands)	Unpaid principal balance		Recorded investment		Specific reserves
With no related allowance:
SBA loans held for investment (1)	$	1,224	$	1,064	$	—
Commercial loans
Commercial real estate	213		213		—
Total commercial loans	213		213		—
Total impaired loans with no related allowance	1,437		1,277		—
With an allowance:
SBA loans held for investment (1)	157		41		41
Commercial loans
Commercial other	816		316		316
Commercial real estate	705		705		57
Total commercial loans	1,521		1,021		373
Total impaired loans with a related allowance	1,678		1,062		414
Total individually evaluated impaired loans:
SBA loans held for investment (1)	1,381		1,105		41
Commercial loans
Commercial other	816		316		316
Commercial real estate	918		918		57
Total commercial loans	1,734		1,234		373
Total individually evaluated impaired loans	$	3,115	$	2,339	$	414

(1) Balances are reduced by amount guaranteed by the SBA of $59 thousand at December 31, 2019.

	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.

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, 2019, 2018 and 2017.  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,
	2019				2018				2017
(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)	$	679	$	17	$	1,063	$	3	$	668	$	47
Commercial loans
SBA 504 loans	—		—		—		—		82		—
Commercial other	264		6		12		—		25		—
Commercial real estate	1,258		36		2,092		100		685		43
Total	$	2,201	$	59	$	3,167	$	103	$	1,460	$	90

(1) Balances are reduced by the average amount guaranteed by the SBA of $124 thousand, $85 thousand and $318 thousand for years ended December 31, 2019, 2018 and 2017, 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)	2019			2018			2017
Balance, beginning of year	$	2,375		$	1,800		$	2,086
Servicing assets capitalized	643			939			172
Amortization of expense	(992		)	(364		)	(458		)
Balance, end of year	$	2,026		$	2,375		$	1,800

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, 2019			December 31, 2018
Balance, beginning of year	$	22,429		$	33,109
New loans and advances	73			4,083
Loan repayments	(4,661		)	(14,763		)
Balance, end of year	$	17,841		$	22,429