Loans (Tables)

9 Months Ended

Sep. 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 September 30, 2023 and December 31, 2022:

(In thousands)	September 30, 2023		December 31, 2022
SBA loans held for investment	$	40,873	$	38,468
SBA PPP loans		2,507		5,908
Commercial loans
SBA 504 loans		31,808		35,077
Commercial other		130,967		117,566
Commercial real estate		968,801		903,126
Commercial real estate construction		144,580		131,774
Residential mortgage loans		628,628		605,091
Consumer loans
Home equity		65,461		68,310
Consumer other		6,728		9,854
Residential construction loans		133,450		163,457
Total loans held for investment	$	2,153,803	$	2,078,631
SBA loans held for sale		19,387		27,928
Total loans	$	2,173,190	$	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 September 30, 2023 and December 31, 2022:

	September 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	$	4,083	$	420	$	—	$	3,445	$	7,948	$	32,925	$	40,873
Commercial loans
SBA 504 loans		—		—		—		—		—		31,808		31,808
Commercial other		—		—		—		668		668		130,299		130,967
Commercial real estate		553		—		—		82		635		968,166		968,801
Commercial real estate construction		—		—		—		—		—		144,580		144,580
Residential mortgage loans		4,961		3,347		260		10,270		18,838		609,790		628,628
Consumer loans
Home equity		286		15		—		125		426		65,035		65,461
Consumer other		1,319		52		5		—		1,376		5,352		6,728
Residential construction loans		—		—		—		3,201		3,201		130,249		133,450
Total loans held for investment, excluding SBA PPP		11,202		3,834		265		17,791		33,092		2,118,204		2,151,296
SBA loans held for sale		815		—		—		—		815		18,572		19,387
Total loans, excluding SBA PPP	$	12,017	$	3,834	$	265	$	17,791	$	33,907	$	2,136,776	$	2,170,683

	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		$	1,057	$	7,113	$	5,151	$	6,131	$	2,669	$	11,334	$	-	$	33,455
Special Mention			-		1,797		-		510		-		778		-		3,085
Substandard			-		1,256		2,225		190		-		662		-		4,333
Total SBA loans held for investment		$	1,057	$	10,166	$	7,376	$	6,831	$	2,669	$	12,774	$	-	$	40,873
SBA loans held for investment
Current-period gross writeoffs		$	-	$	100	$	-	$	-	$	113	$	-	$	-	$	213
SBA PPP loans
Risk Rating:
Pass		$	-	$	-	$	2,507	$	-	$	-	$	-	$	-	$	2,507
Special Mention			-		-		-		-		-		-		-		-
Substandard			-		-		-		-		-		-		-		-
Total SBA PPP loans		$	-	$	-	$	2,507	$	-	$	-	$	-	$	-	$	2,507
Commercial loans
Risk Rating:
Pass		$	101,748	$	358,414	$	186,930	$	136,850	$	102,312	$	278,861	$	95,372	$	1,260,487
Special Mention			-		82		212		-		1,727		10,307		645		12,973
Substandard			-		-		-		236		-		2,460		-		2,696
Total commercial loans		$	101,748	$	358,496	$	187,142	$	137,086	$	104,039	$	291,628	$	96,017	$	1,276,156
Commercial loans
Current-period gross writeoffs		$	-	$	-	$	150	$	-	$	350	$	-	$	-	$	500
Residential mortgage loans
Risk Rating:
Performing		$	83,675	$	259,430	$	73,961	$	52,432	$	32,944	$	115,498	$	-	$	617,940
Nonperforming			5,032		2,174		550		1,055		276		1,601		-		10,688
Total residential mortgage loans		$	88,707	$	261,604	$	74,511	$	53,487	$	33,220	$	117,099	$	-	$	628,628
Consumer loans
Risk Rating:
Performing		$	3,041	$	5,103	$	4,450	$	696	$	2,589	$	8,045	$	47,875	$	71,799
Nonperforming			-		-		-		-		-		-		390		390
Total consumer loans		$	3,041	$	5,103	$	4,450	$	696	$	2,589	$	8,045	$	48,265	$	72,189
Consumer loans
Current-period gross writeoffs		$	-	$	-	$	397	$	-	$	-	$	-	$	-	$	397
Residential construction
Risk Rating:
Performing		$	20,697	$	72,544	$	34,165	$	1,550	$	500	$	732	$	-	$	130,188
Nonperforming			-		-		377		547		-		1,303		1,035		3,262
Total residential construction loans		$	20,697	$	72,544	$	34,542	$	2,097	$	500	$	2,035	$	1,035	$	133,450
Residential construction
Current-period gross writeoffs		$	-	$	-	$	-	$	-	$	-	$	500	$	400	$	900
Total loans held for investment		$	215,250	$	707,913	$	310,528	$	200,197	$	143,017	$	431,581	$	145,317	$	2,153,803

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 nine months ended September 30, 2023:

	Term Extension
		Amortized Cost Basis	% of Total Class of
		September 30, 2023	Gross Loans
Commercial	$	952	0.1	%
	Principal Forgiveness/Deferment
		Amortized Cost Basis	% of Total Class of
		September 30, 2023	Gross Loans
SBA	$	9	0.0	%