Loans (Tables)

6 Months Ended

Jun. 30, 2024

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 credit losses as of June 30, 2024 and December 31, 2023:

(In thousands)	June 30, 2024		December 31, 2023
SBA loans held for investment	$	38,017	$	38,584
SBA PPP loans		1,734		2,318
Commercial loans
SBA 504 loans		39,195		33,669
Commercial & industrial		147,172		128,402
Commercial real estate		1,006,092		986,230
Commercial real estate construction		125,749		129,159
Residential mortgage loans		624,949		631,506
Consumer loans
Home equity		65,065		67,037
Consumer other		4,215		5,639
Residential construction loans		103,188		131,277
Total loans held for investment	$	2,155,376	$	2,153,821
SBA loans held for sale		15,159		18,242
Total loans	$	2,170,535	$	2,172,063

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, 2024 and December 31, 2023:

	June 30, 2024
					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	$	1,816	$	—	$	—	$	3,813	$	5,629	$	32,388	$	38,017
Commercial loans
SBA 504 loans		—		—		—		—		—		39,195		39,195
Commercial & industrial		—		9		—		84		93		147,079		147,172
Commercial real estate		4,676		—		373		2,237		7,286		998,806		1,006,092
Commercial real estate construction		—		—		—		—		—		125,749		125,749
Residential mortgage loans		16,610		3,729		—		5,336		25,675		599,274		624,949
Consumer loans
Home equity		—		—		—		105		105		64,960		65,065
Consumer other		44		53		—		—		97		4,118		4,215
Residential construction loans		2,213		—		—		547		2,760		100,428		103,188
Total loans held for investment, excluding SBA PPP		25,359		3,791		373		12,122		41,645		2,111,997		2,153,642
SBA loans held for sale		—		—		—		—		—		15,159		15,159
Total loans, excluding SBA PPP	$	25,359	$	3,791	$	373	$	12,122	$	41,645	$	2,127,156	$	2,168,801

	December 31, 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	$	551	$	185	$	—	$	3,444	$	4,180	$	34,404	$	38,584
Commercial loans
SBA 504 loans		—		—		—		—		—		33,669		33,669
Commercial & industrial		288		78		—		283		649		127,753		128,402
Commercial real estate		1,732		—		—		1,665		3,397		982,833		986,230
Commercial real estate construction		—		—		—		—		—		129,159		129,159
Residential mortgage loans		8,719		1,378		946		10,326		21,369		610,137		631,506
Consumer loans
Home equity		14		—		—		381		395		66,642		67,037
Consumer other		28		55		—		—		83		5,556		5,639
Residential construction loans		2,580		—		—		2,141		4,721		126,556		131,277
Total loans held for investment, excluding SBA PPP		13,912		1,696		946		18,240		34,794		2,116,709		2,151,503
SBA loans held for sale		—		—		—		—		—		18,242		18,242
Total loans, excluding SBA PPP	$	13,912	$	1,696	$	946	$	18,240	$	34,794	$	2,134,951	$	2,169,745

Individually Evaluated Loans with Associated Allowance Amount

	June 30, 2024
	Unpaid				Allowance for
	principal		Recorded		Credit Losses
(In thousands)	balance		investment		Allocated
With no related allowance:
SBA loans held for investment	$	360	$	269	$	—
Commercial loans
Commercial & industrial		638		33		—
Commercial real estate		3,300		2,120		—
Total commercial loans		3,938		2,153		—
Residential mortgage loans		1,753		1,753		—
Consumer loans
Home equity		115		105		—
Total consumer loans		115		105		—
Residential construction loans		547		547		—
Total individually evaluated loans with no related allowance		6,713		4,827		—
With an allowance:
SBA loans held for investment		3,669		3,544		683
Commercial loans
Commercial & industrial		129		51		51
Commercial real estate		490		490		204
Total commercial loans		619		541		255
Residential mortgage loans		3,614		3,583		286
Total individually evaluated loans with a related allowance		7,902		7,668		1,224
Total individually evaluated loans:
SBA loans held for investment		4,029		3,813		683
Commercial loans
Commercial & industrial		767		84		51
Commercial real estate		3,790		2,610		204
Total commercial loans		4,557		2,694		255
Residential mortgage loans		5,367		5,336		286
Consumer loans
Home equity		115		105		—
Total consumer loans		115		105		—
Residential construction loans		547		547		—
Total individually evaluated loans	$	14,615	$	12,495	$	1,224

	December 31, 2023
	Unpaid				Allowance for
	principal		Recorded		Credit Losses
(In thousands)	balance		investment		Allocated
With no related allowance:
SBA loans held for investment	$	2,264	$	2,186	$	—
Commercial loans
Commercial real estate		2,734		1,607		—
Total commercial loans		2,734		1,607		—
Residential mortgage loans		7,146		7,121		—
Consumer loans
Home equity		390		388		—
Total consumer loans		390		388		—
Residential construction loans		2,757		2,141		—
Total individually evaluated loans with no related allowance		15,291		13,443		—
With an allowance:
SBA loans held for investment		1,383		1,258		348
Commercial loans
Commercial & industrial		638		283		283
Commercial real estate		209		58		58
Total commercial loans		847		341		341
Residential mortgage loans		4,182		4,151		306
Total individually evaluated loans with a related allowance		6,412		5,750		995
Total individually evaluated loans:
SBA loans held for investment		3,647		3,444		348
Commercial loans
Commercial & industrial		638		283		283
Commercial real estate		2,943		1,665		58
Total commercial loans		3,581		1,948		341
Residential mortgage loans		11,328		11,272		306
Consumer loans
Home equity		390		388		—
Total consumer loans		390		388		—
Residential construction loans		2,757		2,141		—
Total individually evaluated loans	$	21,703	$	19,193	$	995

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

	Term Loans
	Amortized Cost Basis by Origination Year, June 30, 2024
(In thousands)		2024		2023		2022		2021		2020		2019 and Earlier		Revolving Loans Amortized Cost Basis		Total
SBA loans held for investment
Risk Rating:
Pass	$	1,268	$	1,872	$	5,222	$	4,854	$	5,727	$	12,612	$	-	$	31,555
Special Mention		-		-		1,805		356		510		157		-		2,828
Substandard		-		-		1,256		2,186		189		3		-		3,634
Total SBA loans held for investment	$	1,268	$	1,872	$	8,283	$	7,396	$	6,426	$	12,772	$	-	$	38,017
SBA PPP loans
Risk Rating:
Pass	$	-	$	-	$	-	$	1,734	$	-	$	-	$	-	$	1,734
Total SBA PPP loans	$	-	$	-	$	-	$	1,734	$	-	$	-	$	-	$	1,734
Commercial loans
Risk Rating:
Pass	$	48,352	$	161,203	$	334,416	$	180,628	$	124,855	$	356,822	$	97,903	$	1,304,179
Special Mention		-		-		6,358		915		-		4,161		395		11,829
Substandard		-		-		-		2		10		2,188		-		2,200
Total commercial loans	$	48,352	$	161,203	$	340,774	$	181,545	$	124,865	$	363,171	$	98,298	$	1,318,208
Commercial loans
Current-period gross writeoffs	$	-	$	-	$	-	$	138	$	-	$	98	$	-	$	236
Residential mortgage loans
Risk Rating:
Performing	$	41,911	$	82,249	$	241,579	$	68,543	$	47,895	$	137,430	$	-	$	619,607
Nonperforming		-		-		1,358		2,982		259		743		-		5,342
Total residential mortgage loans	$	41,911	$	82,249	$	242,937	$	71,525	$	48,154	$	138,173	$	-	$	624,949
Consumer loans
Risk Rating:
Performing	$	3,357	$	2,883	$	4,169	$	2,445	$	606	$	10,935	$	44,770	$	69,165
Nonperforming		-		-		-		-		115		-		-		115
Total consumer loans	$	3,357	$	2,883	$	4,169	$	2,445	$	721	$	10,935	$	44,770	$	69,280
Consumer loans
Current-period gross writeoffs	$	-	$	-	$	21	$	49	$	-	$	130	$	-	$	200
Residential construction
Risk Rating:
Pass	$	11,687	$	31,897	$	49,974	$	6,690	$	1,161	$	1,232	$	-	$	102,641
Substandard		-		-		-		-		547		-		-		547
Total residential construction loans	$	11,687	$	31,897	$	49,974	$	6,690	$	1,708	$	1,232	$	-	$	103,188
Residential construction
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	277	$	-	$	277
Total loans held for investment	$	106,575	$	280,104	$	646,137	$	271,335	$	181,874	$	526,283	$	143,068	$	2,155,376

	Term Loans
	Amortized Cost Basis by Origination Year, December 31, 2023
(In thousands)		2023		2022		2021		2020		2019		2018 and Earlier		Revolving Loans Amortized Cost Basis		Total
SBA loans held for investment
Risk Rating:
Pass	$	1,938	$	5,339	$	4,723	$	6,083	$	2,634	$	10,996	$	-	$	31,713
Special Mention		-		1,765		356		510		-		31		-		2,662
Substandard		-		1,256		2,186		190		-		577		-		4,209
Total SBA loans held for investment	$	1,938	$	8,360	$	7,265	$	6,783	$	2,634	$	11,604	$	-	$	38,584
SBA loans held for investment
Current-period gross writeoffs	$	-	$	100	$	-	$	-	$	113	$	-	$	-	$	213
SBA PPP loans
Risk Rating:
Pass	$	-	$	-	$	2,318	$	-	$	-	$	-	$	-	$	2,318
Total SBA PPP loans	$	-	$	-	$	2,318	$	-	$	-	$	-	$	-	$	2,318
Commercial loans
Risk Rating:
Pass	$	139,622	$	343,755	$	181,419	$	128,165	$	101,274	$	271,469	$	96,988	$	1,262,692
Special Mention		-		-		1,815		-		1,570		7,423		395		11,203
Substandard		-		-		59		14		288		3,204		-		3,565
Total commercial loans	$	139,622	$	343,755	$	183,293	$	128,179	$	103,132	$	282,096	$	97,383	$	1,277,460
Commercial loans
Current-period gross writeoffs	$	-	$	-	$	150	$	-	$	350	$	252	$	-	$	752
Residential mortgage loans
Risk Rating:
Performing	$	102,892	$	253,919	$	72,586	$	51,999	$	30,482	$	109,302	$	-	$	621,180
Nonperforming		-		2,964		2,714		1,054		945		2,649		-		10,326
Total residential mortgage loans	$	102,892	$	256,883	$	75,300	$	53,053	$	31,427	$	111,951	$	-	$	631,506
Residential mortgage loans
Current-period gross writeoffs	$	-	$	-	$	25	$	-	$	-	$	68	$	-	$	93
Consumer loans
Risk Rating:
Performing	$	3,428	$	4,777	$	3,681	$	670	$	2,481	$	7,507	$	49,751	$	72,295
Nonperforming		-		-		-		125		-		256		-		381
Total consumer loans	$	3,428	$	4,777	$	3,681	$	795	$	2,481	$	7,763	$	49,751	$	72,676
Consumer loans
Current-period gross writeoffs	$	-	$	26	$	552	$	-	$	-	$	-	$	-	$	578
Residential construction
Risk Rating:
Performing	$	28,827	$	72,257	$	25,395	$	1,418	$	491	$	748	$	-	$	129,136
Nonperforming		-		-		-		547		-		1,594		-		2,141
Total residential construction loans	$	28,827	$	72,257	$	25,395	$	1,965	$	491	$	2,342	$	-	$	131,277
Residential construction
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	600	$	400	$	1,000
Total loans held for investment	$	276,707	$	686,032	$	297,252	$	190,775	$	140,165	$	415,756	$	147,134	$	2,153,821

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 twelve months ended June 30, 2024:

		Principal		Payment		Term
(In thousands)		Forgiveness		Delay		Extension
SBA loans held for investment	$	4	$	99	$	—
Commercial loans
Commercial & industrial		—		—		2,074
Commercial real estate		—		2,619		—
Residential mortgage loans		—		1,036		—
Consumer loans
Home equity		—		—		2,309
Balance, June 30, 2024	$	4	$	3,754	$	4,383