Allowance for Credit Losses and Reserve for Unfunded Loan Commitments (Tables)

6 Months Ended

Jun. 30, 2024

Allowance for Credit Losses and Reserve for Unfunded Loan Commitments

Activity in the Allowance for Loan Losses by Portfolio Segment

The following tables detail the activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2024 and 2023:

	For the three months ended June 30, 2024
		SBA							Residential
(In thousands)	Held for Investment		Commercial		Residential		Consumer		construction		Total
Balance, beginning of period	$	1,209	$	16,187	$	6,394	$	922	$	1,368	$	26,080
Charge-offs		—		(138)		—		(130)		—		(268)
Recoveries		6		12		—		11		—		29
Net recoveries (charge-offs)		6		(126)		—		(119)		—		(239)
Provision for (credit to) credit losses charged to expense		242		627		(181)		32		(454)		266
Balance, end of period	$	1,457	$	16,688	$	6,213	$	835	$	914	$	26,107

	For the three months ended June 30, 2023
	SBA									Residential
(In thousands)	Held for Investment		Commercial		Residential		Consumer		construction		Total
Balance, beginning of period	$	1,103	$	15,299	$	6,135	$	1,022	$	2,642	$	26,201
Charge-offs		—		—		—		(225)		(900)		(1,125)
Recoveries		15		96		—		24		—		135
Net recoveries (charge-offs)		15		96		—		(201)		(900)		(990)
Provision for (credit to) credit losses charged to expense		438		121		302		24		(108)		777
Balance, end of period	$	1,556	$	15,516	$	6,437	$	845	$	1,634	$	25,988

	For the six months ended June 30, 2024
		SBA								Residential
(In thousands)	Held for Investment		Commercial		Residential		Consumer		construction		Total
Balance, beginning of period	$	1,221	$	15,876	$	6,529	$	1,022	$	1,206	$	25,854
Charge-offs		—		(236)		—		(200)		(277)		(713)
Recoveries		14		24		—		21		—		59
Net recoveries (charge-offs)		14		(212)		—		(179)		(277)		(654)
Provision for (credit to) credit losses charged to expense		222		1,024		(316)		(8)		(15)		907
Balance, end of period	$	1,457	$	16,688	$	6,213	$	835	$	914	$	26,107

	For the six months ended June 30, 2023
	SBA									Residential
(In thousands)	Held for Investment		Commercial		Residential		Consumer		construction		Total
Balance, beginning of period	$	875	$	15,254	$	5,450	$	990	$	2,627	$	25,196
Effect of adopting Accounting Standards Update ("ASU") No. 2016-13 ("CECL")		163		171		376		101		36		847
Charge-offs		(113)		—		—		(345)		(900)		(1,358)
Recoveries		15		367		—		36		—		418
Net (charge-offs) recoveries		(98)		367		—		(309)		(900)		(940)
Provision for (credit to) credit losses charged to expense		616		(276)		611		63		(129)		885
Balance, end of period	$	1,556	$	15,516	$	6,437	$	845	$	1,634	$	25,988

Allowance for Credit Losses on Financing Receivables

The following tables present loans and their related allowance for credit losses, by portfolio segment, as of June 30, 2024 and December 31, 2023:

	June 30, 2024
		SBA								Residential
(In thousands)	Held for Investment		Commercial		Residential		Consumer		construction		Total
Allowance for credit losses ending balance:
Individually evaluated	$	683	$	255	$	286	$	—	$	—	$	1,224
Collectively evaluated		774		16,433		5,927		835		914		24,883
Total	$	1,457	$	16,688	$	6,213	$	835	$	914	$	26,107
Loan ending balances:
Individually evaluated	$	3,813	$	2,694	$	5,336	$	105	$	547	$	12,495
Collectively evaluated		35,938		1,315,514		619,613		69,175		102,641		2,142,881
Total	$	39,751	$	1,318,208	$	624,949	$	69,280	$	103,188	$	2,155,376

	December 31, 2023
		SBA								Residential
(In thousands)	Held for Investment		Commercial		Residential		Consumer		construction		Total
Allowance for credit losses ending balance:
Individually evaluated	$	348	$	341	$	306	$	—	$	—	$	995
Collectively evaluated		873		15,535		6,223		1,022		1,206		24,859
Total	$	1,221	$	15,876	$	6,529	$	1,022	$	1,206	$	25,854
Loan ending balances:
Individually evaluated	$	3,444	$	1,948	$	11,272	$	388	$	2,141	$	19,193
Collectively evaluated		37,458		1,275,512		620,234		72,288		129,136		2,134,628
Total	$	40,902	$	1,277,460	$	631,506	$	72,676	$	131,277	$	2,153,821