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

9 Months Ended

Sep. 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 nine months ended September 30, 2024 and 2023:

	For the three months ended September 30, 2024
		SBA							Residential
(In thousands)	Held for Investment		Commercial		Residential		Consumer		construction		Total
Balance, beginning of period	$	1,457	$	16,688	$	6,213	$	835	$	914	$	26,107
Charge-offs		(70)		(46)		—		(68)		—		(184)
Recoveries		7		9		—		34		—		50
Net charge-offs		(63)		(37)		—		(34)		—		(134)
(Credit to) provision for credit losses charged to expense		(77)		923		221		(2)		(36)		1,029
Balance, end of period	$	1,317	$	17,574	$	6,434	$	799	$	878	$	27,002

	For the three months ended September 30, 2023
	SBA									Residential
(In thousands)	Held for Investment		Commercial		Residential		Consumer		construction		Total
Balance, beginning of period	$	1,556	$	15,516	$	6,437	$	845	$	1,634	$	25,988
Charge-offs		(100)		(500)		—		(52)		—		(652)
Recoveries		1		10		—		37		—		48
Net charge-offs		(99)		(490)		—		(15)		—		(604)
Provision for (credit to) credit losses charged to expense		199		325		(6)		130		(114)		534
Balance, end of period	$	1,656	$	15,351	$	6,431	$	960	$	1,520	$	25,918

	For the nine months ended September 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		(70)		(282)		—		(268)		(277)		(897)
Recoveries		21		32		—		55		—		108
Net charge-offs		(49)		(250)		—		(213)		(277)		(789)
Provision for (credit to) credit losses charged to expense		145		1,948		(95)		(10)		(51)		1,937
Balance, end of period	$	1,317	$	17,574	$	6,434	$	799	$	878	$	27,002

	For the nine months ended September 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		(213)		(500)		—		(397)		(900)		(2,010)
Recoveries		16		377		—		73		—		466
Net charge-offs		(197)		(123)		—		(324)		(900)		(1,544)
Provision for (credit to) credit losses charged to expense		815		49		605		193		(243)		1,419
Balance, end of period	$	1,656	$	15,351	$	6,431	$	960	$	1,520	$	25,918

Allowance for Credit Losses on Financing Receivables

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

	September 30, 2024
		SBA								Residential
(In thousands)	Held for Investment		Commercial		Residential		Consumer		construction		Total
Allowance for credit losses ending balance:
Individually evaluated	$	501	$	469	$	301	$	—	$	—	$	1,271
Collectively evaluated		816		17,105		6,133		799		878		25,731
Total	$	1,317	$	17,574	$	6,434	$	799	$	878	$	27,002
Loan ending balances:
Individually evaluated	$	3,646	$	3,674	$	5,053	$	100	$	547	$	13,020
Collectively evaluated		35,851		1,365,089		618,476		72,191		98,145		2,189,752
Total	$	39,497	$	1,368,763	$	623,529	$	72,291	$	98,692	$	2,202,772

	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