Loans (Tables)

6 Months Ended

Jun. 30, 2023

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 June 30, 2023 and December 31, 2022:

(In thousands)	June 30, 2023		December 31, 2022
SBA loans held for investment	$	39,878	$	38,468
SBA PPP loans		2,555		5,908
Commercial loans
SBA 504 loans		31,657		35,077
Commercial other		130,737		117,566
Commercial real estate		931,756		903,126
Commercial real estate construction		161,882		131,774
Residential mortgage loans		633,414		605,091
Consumer loans
Home equity		68,379		68,310
Consumer other		7,611		9,854
Residential construction loans		139,424		163,457
Total loans held for investment	$	2,147,293	$	2,078,631
SBA loans held for sale		20,074		27,928
Total loans	$	2,167,367	$	2,106,559

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, 2023 and December 31, 2022:

	June 30, 2023
					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	$	—	$	192	$	—	$	3,591	$	3,783	$	36,095	$	39,878
Commercial loans
SBA 504 loans		—		—		—		—		—		31,657		31,657
Commercial other		—		—		—		630		630		130,107		130,737
Commercial real estate		—		—		—		205		205		931,551		931,756
Commercial real estate construction		—		—		—		—		—		161,882		161,882
Residential mortgage loans		—		5,444		—		8,607		14,051		619,363		633,414
Consumer loans
Home equity		—		—		—		—		—		68,379		68,379
Consumer other		86		35		—		—		121		7,490		7,611
Residential construction loans		—		—		—		3,182		3,182		136,242		139,424
Total loans held for investment, excluding SBA PPP		86		5,671		—		16,215		21,972		2,122,766		2,144,738
SBA loans held for sale		—		—		—		—		—		20,074		20,074
Total loans, excluding SBA PPP	$	86	$	5,671	$	—	$	16,215	$	21,972	$	2,142,840	$	2,164,812

	December 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	$	—	$	576	$	—	$	690	$	1,266	$	37,202	$	38,468
Commercial loans
SBA 504 loans		—		—		—		—		—		35,077		35,077
Commercial other		198		300		—		777		1,275		116,291		117,566
Commercial real estate		22		188		—		805		1,015		902,111		903,126
Commercial real estate construction		—		—		—		—		—		131,774		131,774
Residential mortgage loans		—		982		—		3,361		4,343		600,748		605,091
Consumer loans
Home equity		—		—		—		—		—		68,310		68,310
Consumer other		18		7		—		—		25		9,829		9,854
Residential construction loans		—		—		—		3,432		3,432		160,025		163,457
Total loans held for investment, excluding SBA PPP		238		2,053		—		9,065		11,356		2,061,367		2,072,723
SBA loans held for sale		2,195		—		—		—		2,195		25,733		27,928
Total loans, excluding SBA PPP	$	2,433	$	2,053	$	—	$	9,065	$	13,551	$	2,087,100	$	2,100,651

Schedule of Loan Classification Risk by Loan Portfolio Classification by Origination Year

	Term Loans
	Amortized Cost Basis by Origination Year
(In thousands)			2023		2022		2021		2020		2019		2018 and Earlier		Revolving Loans Amortized Cost Basis		Total
SBA loans held for investment
Risk Rating:
Pass		$	979	$	7,339	$	5,132	$	6,247	$	2,704	$	11,627	$	-	$	34,028
Special Mention			-		-		-		702		-		758		-		1,460
Substandard			-		1,361		2,237		-		-		792		-		4,390
Total SBA loans held for investment		$	979	$	8,700	$	7,369	$	6,949	$	2,704	$	13,177	$	-	$	39,878
SBA loans held for investment
Current-period gross writeoffs		$	-	$	-	$	-	$	-	$	113	$	-	$	-	$	113
SBA PPP loans
Risk Rating:
Pass		$	-	$	-	$	2,555	$	-	$	-	$	-	$	-	$	2,555
Special Mention			-		-		-		-		-		-		-		-
Substandard			-		-		-		-		-		-		-		-
Total SBA PPP loans		$	-	$	-	$	2,555	$	-	$	-	$	-	$	-	$	2,555
Commercial loans
Risk Rating:
Pass		$	84,290	$	345,498	$	185,728	$	138,087	$	103,348	$	286,754	$	93,312	$	1,237,017
Special Mention			-		86		2,100		-		2,251		11,386		395		16,218
Substandard			-		-		-		220		-		2,577		-		2,797
Total commercial loans		$	84,290	$	345,584	$	187,828	$	138,307	$	105,599	$	300,717	$	93,707	$	1,256,032
Residential mortgage loans
Risk Rating:
Performing		$	69,505	$	266,630	$	77,180	$	54,857	$	34,294	$	122,341	$	-	$	624,807
Nonperforming			1,711		2,331		2,413		795		276		1,081		-		8,607
Total residential mortgage loans		$	71,216	$	268,961	$	79,593	$	55,652	$	34,570	$	123,422	$	-	$	633,414
Consumer loans
Risk Rating:
Performing		$	1,562	$	5,438	$	5,650	$	724	$	3,399	$	8,321	$	50,626	$	75,720
Nonperforming			-		-		-		-		-		-		270		270
Total consumer loans		$	1,562	$	5,438	$	5,650	$	724	$	3,399	$	8,321	$	50,896	$	75,990
Consumer loans
Current-period gross writeoffs		$	-	$	-	$	345	$	-	$	-	$	-	$	-	$	345
Residential construction
Risk Rating:
Performing		$	13,093	$	76,151	$	37,515	$	7,751	$	500	$	1,232	$	-	$	136,242
Nonperforming			-		-		352		-		-		1,795		1,035		3,182
Total residential construction loans		$	13,093	$	76,151	$	37,867	$	7,751	$	500	$	3,027	$	1,035	$	139,424
Residential construction
Current-period gross writeoffs		$	-	$	-	$	-	$	-	$	-	$	500	$	400	$	900
Total loans held for investment		$	171,140	$	704,834	$	320,862	$	209,383	$	146,772	$	448,664	$	145,638	$	2,147,293

Loan Portfolio by Class According to Their Credit Quality Indicators

	December 31, 2022
	SBA & Commercial loans - Internal risk ratings
(In thousands)	Pass		Special mention		Substandard		Total
SBA loans held for investment	$	37,163	$	558	$	747	$	38,468
SBA PPP loans		5,908		—		—		5,908
Commercial loans
SBA 504 loans		35,077		—		—		35,077
Commercial other		110,107		6,220		1,239		117,566
Commercial real estate		894,110		6,228		2,788		903,126
Commercial real estate construction		131,774		—		—		131,774
Total commercial loans		1,171,068		12,448		4,027		1,187,543
Total SBA and commercial loans	$	1,214,139	$	13,006	$	4,774	$	1,231,919
			Residential mortgage, Consumer & Residential construction loans - Performing/Nonperforming
(In thousands)			Performing		Nonperforming		Total
Residential mortgage loans			$	601,730	$	3,361	$	605,091
Consumer loans
Home equity				68,310		—		68,310
Consumer other				9,854		—		9,854
Total consumer loans				78,164		—		78,164
Residential construction loans				160,025		3,432		163,457
Total residential mortgage, consumer and residential construction loans			$	839,919	$	6,793	$	846,712

Schedule of Amortized Cost Basis of Loans Modified, Disaggregated by Class of Gross Loans and Type of Concession Granted

The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of gross loans and type of concession granted (numbers in thousands) during the six months ended June 30, 2023:

	Term Extension
		Amortized Cost Basis	% of Total Class of
		June 30, 2023	Gross Loans
Commercial	$	954	0.08	%