Loans (Tables)

12 Months Ended

Dec. 31, 2021

Loans

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, 2021		December 31, 2020
SBA loans held for investment	$	36,075	$	39,587
SBA PPP loans		46,450		118,257
Commercial loans
SBA 504 loans		27,479		19,681
Commercial other		109,903		118,280
Commercial real estate		704,674		630,423
Commercial real estate construction		89,670		71,404
Residential mortgage loans		409,355		467,586
Consumer loans
Home equity		76,725		62,549
Consumer other		1,219		3,551
Residential construction loans		120,525		87,164
Total loans held for investment	$	1,622,075	$	1,618,482
SBA loans held for sale		27,373		9,335
Total loans	$	1,649,448	$	1,627,817

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, 2021:

	December 31, 2021
	SBA & Commercial loans - Internal risk ratings
(In thousands)	Pass		Special mention		Substandard		Total
SBA loans held for investment	$	34,959	$	745	$	371	$	36,075
SBA PPP loans		46,450		—		—		46,450
Commercial loans
SBA 504 loans		27,479		—		—		27,479
Commercial other		105,388		1,976		2,539		109,903
Commercial real estate		694,627		7,980		2,067		704,674
Commercial real estate construction		86,770		2,900		—		89,670
Total commercial loans		914,264		12,856		4,606		931,726
Total SBA and commercial loans	$	995,673	$	13,601	$	4,977	$	1,014,251
			Residential mortgage, Consumer & Residential construction loans - Performing/Nonperforming
(In thousands)			Performing		Nonperforming		Total
Residential mortgage loans			$	406,093	$	3,262	$	409,355
Consumer loans
Home equity				76,515		210		76,725
Consumer other				1,219		—		1,219
Total consumer loans				77,734		210		77,944
Residential construction loans				117,403		3,122		120,525
Total residential mortgage, consumer and residential construction loans			$	601,230	$	6,594	$	607,824

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, 2020:

	December 31, 2020
	SBA & Commercial loans - Internal risk ratings
(In thousands)	Pass		Special mention		Substandard		Total
SBA loans held for investment	$	36,818	$	525	$	2,244	$	39,587
SBA PPP loans		118,257		—		—		118,257
Commercial loans
SBA 504 loans		19,681		—		—		19,681
Commercial other		109,672		5,533		3,075		118,280
Commercial real estate		603,482		25,206		1,735		630,423
Commercial real estate construction		71,404		—		—		71,404
Total commercial loans		804,239		30,739		4,810		839,788
Total SBA and commercial loans	$	959,314	$	31,264	$	7,054	$	997,632
			Residential mortgage, Consumer & Residential construction loans - Performing/Nonperforming
(In thousands)			Performing		Nonperforming		Total
Residential mortgage loans			$	462,369	$	5,217	$	467,586
Consumer loans
Home equity				61,254		1,295		62,549
Consumer other				3,551		—		3,551
Total consumer loans				64,805		1,295		66,100
Residential construction loans				85,414		1,750		87,164
Total residential mortgage, consumer and residential construction loans			$	612,588	$	8,262	$	620,850

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, 2021 and December 31, 2020:

	December 31, 2021
					90+ days
	30‑59 days		60‑89 days		and still		Nonaccrual		Total past
(In thousands)	past due		past due		accruing		(1)		due		Current		Total loans
SBA loans held for investment	$	1,558	$	—	$	—	$	510	$	2,068	$	34,007	$	36,075
SBA PPP loans		—		79		—		—		79		46,371		46,450
Commercial loans
SBA 504 loans		—		—		—		—		—		27,479		27,479
Commercial other		—		33		—		2,216		2,249		107,654		109,903
Commercial real estate		334		565		—		366		1,265		703,409		704,674
Commercial real estate construction		—		—		—		—		—		89,670		89,670
Residential mortgage loans		3,688		—		—		3,262		6,950		402,405		409,355
Consumer loans
Home equity		39		—		—		210		249		76,476		76,725
Consumer other		—		—		—		—		—		1,219		1,219
Residential construction loans		—		845		—		3,122		3,967		116,558		120,525
Total loans held for investment		5,619		1,522		—		9,686		16,827		1,605,248		1,622,075
SBA loans held for sale		—		—		—		—		—		27,373		27,373
Total loans	$	5,619	$	1,522	$	—	$	9,686	$	16,827	$	1,632,621	$	1,649,448

(1) At December 31, 2021, nonaccrual loans included $59 thousand of loans guaranteed by the SBA.

	December 31, 2020
					90+ days
	30‑59 days		60‑89 days		and still		Nonaccrual		Total past
(In thousands)	past due		past due		accruing		(1)		due		Current		Total loans
SBA loans held for investment	$	792	$	1,280	$	—	$	2,473	$	4,545	$	35,042	$	39,587
SBA PPP loans		—		—		—		—		—		118,257		118,257
Commercial loans
SBA 504 loans		—		—		—		—		—		19,681		19,681
Commercial other		186		201		—		266		653		117,627		118,280
Commercial real estate		3,109		1,971		—		1,059		6,139		624,284		630,423
Commercial real estate construction		1,047		—		—		—		1,047		70,357		71,404
Residential mortgage loans		3,232		2,933		262		5,217		11,644		455,942		467,586
Consumer loans
Home equity		393		—		187		1,295		1,875		60,674		62,549
Consumer other		3		1		—		—		4		3,547		3,551
Residential construction loans		120		796		—		1,750		2,666		84,498		87,164
Total loans held for investment		8,882		7,182		449		12,060		28,573		1,589,909		1,618,482
SBA loans held for sale		597		—		—		—		597		8,738		9,335
Total loans	$	9,479	$	7,182	$	449	$	12,060	$	29,170	$	1,598,647	$	1,627,817

(1) At December 31, 2020, nonaccrual loans included $371 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, 2021 and December 31, 2020:

	December 31, 2021
	Unpaid
	principal		Recorded		Specific
(In thousands)	balance		investment		reserves
With no related allowance:
SBA loans held for investment (1)	$	606	$	506	$	—
Commercial loans
Commercial other		71		70		—
Commercial real estate		1,493		1,493		—
Total commercial loans		1,564		1,563		—
Residential mortgage loans		1,630		1,630		—
Consumer loans:
Home equity		210		210		—
Residential construction loans		2,636		2,636		—
Total impaired loans with no related allowance		6,646		6,545		—
With an allowance:
SBA loans held for investment (1)		35		4		4
Commercial loans
Commercial other		2,832		2,531		2,490
Commercial real estate		973		126		125
Total commercial loans		3,805		2,657		2,615
Residential mortgage loans		1,632		1,632		80
Consumer loans:
Home equity		427		427		56
Residential construction loans		486		486		68
Total impaired loans with a related allowance		6,385		5,206		2,823
Total individually evaluated impaired loans:
SBA loans held for investment (1)		641		510		4
Commercial loans
Commercial other		2,903		2,601		2,490
Commercial real estate		2,466		1,619		125
Total commercial loans		5,369		4,220		2,615
Residential mortgage loans		3,262		3,262		80
Consumer loans:
Home equity		637		637		56
Residential construction loans		3,122		3,122		68
Total individually evaluated impaired loans	$	13,031	$	11,751	$	2,823

(1) Balances are reduced by amount guaranteed by the SBA of $59 thousand at December 31, 2021.

	December 31, 2020
	Unpaid
	principal		Recorded		Specific
(In thousands)	balance		investment		reserves
With no related allowance:
SBA loans held for investment (1)	$	1,799	$	1,698	$	—
Commercial loans
Commercial real estate		1,462		1,462		—
Total commercial loans		1,462		1,462		—
Residential mortgage loans		4,080		3,975
Consumer loans:
Home equity		1,295		1,295
Residential construction loans		1,750		1,750
Total impaired loans with no related allowance		10,386		10,180		—
With an allowance:
SBA loans held for investment (1)		434		404		324
Commercial loans
Commercial other		3,160		3,160		3,106
Commercial real estate		1,730		1,080		576
Total commercial loans		4,890		4,240		3,682
Residential mortgage loans		1,242		1,242		101
Total impaired loans with a related allowance		6,566		5,886		4,107
Total individually evaluated impaired loans:
SBA loans held for investment (1)		2,233		2,102		324
Commercial loans
Commercial other		3,160		3,160		3,106
Commercial real estate		3,192		2,542		576
Total commercial loans		6,352		5,702		3,682
Residential mortgage loans		5,322		5,217		101
Consumer loans:
Home equity		1,295		1,295		—
Residential construction loans		1,750		1,750		—
Total individually evaluated impaired loans	$	16,952	$	16,066	$	4,107

(1) Balances are reduced by amount guaranteed by the SBA of $371 thousand at December 31, 2020.

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

	For the years ended December 31,
	2021				2020				2019
			Interest				Interest				Interest
			income				income				income
	Average		recognized		Average		recognized		Average		recognized
	recorded		on impaired		recorded		on impaired		recorded		on impaired
(In thousands)	investment		loans		investment		loans		investment		loans
SBA loans held for investment (1)	$	1,118	$	102	$	1,674	$	70	$	679	$	17
Commercial loans
SBA 504 loans		—		—		150		32		—		—
Commercial other		889		59		93		31		264		6
Commercial real estate		1,637		137		1,232		124		1,258		36
Commercial real estate construction		—		—		—		33		—		—
Residential mortgage loans		4,358		17		5,409		131		4,671		61
Consumer loans
Home equity		553		23		726		67		66		37
Consumer other		1		—		—		—		2		—
Residential construction loans		2,718		50		165		—		—		—
Total	$	11,274	$	388	$	9,449	$	488	$	6,940	$	157

(1) Balances are reduced by the average amount guaranteed by the SBA of $201 thousand, $719 thousand and $124 thousand for years ended December 31, 2021, 2020 and 2019, respectively.

Schedule of Servicing Assets

	For the years ended December 31,
(In thousands)	2021		2020		2019
Balance, beginning of year	$	1,857	$	2,026	$	2,375
Servicing assets capitalized		126		722		643
Amortization of expense		(970)		(891)		(992)
Balance, end of year	$	1,013	$	1,857	$	2,026

Schedule of Related Party Transactions

(In thousands)	December 31, 2021		December 31, 2020
Balance, beginning of year	$	12,082	$	17,841
New loans and advances		402		58
Loan repayments		(982)		(5,817)
Balance, end of year	$	11,502	$	12,082