Loans (Tables)

3 Months Ended

Mar. 31, 2022

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 as of March 31, 2022 and December 31, 2021:

(In thousands)	March 31, 2022		December 31, 2021
SBA loans held for investment	$	33,048	$	36,075
SBA PPP loans		28,618		46,450
Commercial loans
SBA 504 loans		27,534		27,479
Commercial other		120,345		109,903
Commercial real estate		728,652		704,674
Commercial real estate construction		103,380		89,670
Residential mortgage loans		427,165		409,355
Consumer loans
Home equity		63,536		65,380
Consumer other		14,166		12,564
Residential construction loans		129,658		120,525
Total loans held for investment	$	1,676,102	$	1,622,075
SBA loans held for sale		25,282		27,373
Total loans	$	1,701,384	$	1,649,448

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 March 31, 2022:

	March 31, 2022
	SBA & Commercial loans - Internal risk ratings
(In thousands)	Pass		Special mention		Substandard		Total
SBA loans held for investment	$	31,980	$	735	$	333	$	33,048
SBA PPP loans		28,618		—		—		28,618
Commercial loans
SBA 504 loans		27,534		—		—		27,534
Commercial other		112,554		5,282		2,509		120,345
Commercial real estate		716,912		9,705		2,035		728,652
Commercial real estate construction		103,380		—		—		103,380
Total commercial loans		960,380		14,987		4,544		979,911
Total SBA and commercial loans	$	1,020,978	$	15,722	$	4,877	$	1,041,577
			Residential mortgage, Consumer & Residential construction loans - Performing/Nonperforming
(In thousands)			Performing		Nonperforming		Total
Residential mortgage loans			$	424,166	$	2,999	$	427,165
Consumer loans
Home equity				63,336		200		63,536
Consumer other				14,166		—		14,166
Total consumer loans				77,502		200		77,702
Residential construction loans				126,385		3,273		129,658
Total residential mortgage, consumer and residential construction loans			$	628,053	$	6,472	$	634,525

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				65,170		210		65,380
Consumer other				12,564		—		12,564
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

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, 2022 and December 31, 2021:

	March 31, 2022
					90+ days
	30‑59 days		60‑89 days		and still				Total past
(In thousands)	past due		past due		accruing		Nonaccrual		due		Current		Total loans
SBA loans held for investment	$	—	$	—	$	—	$	537	$	537	$	32,511	$	33,048
SBA PPP loans		—		—		—		—		—		28,618		28,618
Commercial loans
SBA 504 loans		—		—		—		—		—		27,534		27,534
Commercial other		—		28		—		1,931		1,959		118,386		120,345
Commercial real estate		373		—		—		361		734		727,918		728,652
Commercial real estate construction		—		—		—		—		—		103,380		103,380
Residential mortgage loans		3,772		334		488		2,999		7,593		419,572		427,165
Consumer loans
Home equity		—		427		—		200		627		62,909		63,536
Consumer other		—		—		61		—		61		14,105		14,166
Residential construction loans		1,281		404		—		3,273		4,958		124,700		129,658
Total loans held for investment		5,426		1,193		549		9,301		16,469		1,659,633		1,676,102
SBA loans held for sale		—		—		—		—		—		25,282		25,282
Total loans	$	5,426	$	1,193	$	549	$	9,301	$	16,469	$	1,684,915	$	1,701,384

	December 31, 2021
					90+ days
	30‑59 days		60‑89 days		and still				Total past
(In thousands)	past due		past due		accruing		Nonaccrual		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		65,131		65,380
Consumer other		—		—		—		—		—		12,564		12,564
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

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, 2022:

	March 31, 2022
	Unpaid
	principal		Recorded		Specific
(In thousands)	balance		investment		reserves
With no related allowance:
SBA loans held for investment	$	634	$	533	$	—
Commercial loans
Commercial other		96		95		—
Commercial real estate		2,327		2,327		—
Total commercial loans		2,423		2,422		—
Residential mortgage loans		1,369		1,369		—
Consumer loans
Home equity		200		200		—
Residential construction loans		2,637		2,637		—
Total impaired loans with no related allowance		7,263		7,161		—
With an allowance:
SBA loans held for investment		34		4		4
Commercial loans
Commercial other		2,287		2,223		2,223
Commercial real estate		961		127		126
Total commercial loans		3,248		2,350		2,349
Residential mortgage loans		1,777		1,777		224
Consumer loans
Home equity		427		427		56
Residential construction loans		636		636		219
Total impaired loans with a related allowance		6,122		5,194		2,852
Total individually evaluated impaired loans:
SBA loans held for investment		668		537		4
Commercial loans
Commercial other		2,383		2,318		2,223
Commercial real estate		3,288		2,454		126
Total commercial loans		5,671		4,772		2,349
Residential mortgage loans		3,146		3,146		224
Consumer loans
Home equity		627		627		56
Residential construction loans		3,273		3,273		219
Total individually evaluated impaired loans	$	13,385	$	12,355	$	2,852

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, 2021:

	December 31, 2021
	Unpaid
	principal		Recorded		Specific
(In thousands)	balance		investment		reserves
With no related allowance:
SBA loans held for investment	$	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		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		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

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 received during the time period in which the loans were impaired for the three months ended March 31, 2022 and 2021. 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.

	For the three months ended March 31,
	2022				2021
							Interest
			Interest				income
	Average		received		Average		recognized
	recorded		on impaired		recorded		on impaired
(In thousands)	investment		loans		investment		loans
SBA loans held for investment	$	520	$	17	$	1,901	$	16
Commercial loans
Commercial other		2,188		23		374		3
Commercial real estate		2,502		22		2,237		56
Residential mortgage loans		2,827		12		5,561		—
Consumer loans
Home equity		572		12		701		18
Residential construction loans		4,203		33		2,610		10
Total	$	12,812	$	119	$	13,384	$	103

Loans modified as TDRs including number of modifications and recorded investment

	For the three months ended March 31, 2022
	Number of	Recorded investment
(In thousands, except number of contracts)	contracts	at time of modification
Home equity	2	$	882
Total	2	$	882