Note 6 – Loans by Type

A summary of loan categories is as follows:

	September 30,		December 31,
*(In thousands)*	2018		2017
Commercial and industrial	$	270,854	$	236,394
Real estate:
Commercial:
Mortgage		92,972		94,675
Construction		22,883		9,359
Faith-based:
Mortgage		307,679		316,073
Construction		30,838		25,948
Industrial Revenue Bonds		921		3,374
Other		92		408
Total loans	$	726,239	$	686,231

The following table presents the aging of loans by loan categories at September 30, 2018 and December 31, 2017:

	Performing						Nonperforming
							90 Days
			30-59		60-89		and		Non-		Total
*(In thousands)*	Current		Days		Days		Over		accrual		Loans
September 30, 2018
Commercial and industrial	$	270,854	$	—	$	—	$	—	$	—	$	270,854
Real estate:
Commercial:
Mortgage		92,972		—		—		—		—		92,972
Construction		22,883		—		—		—		—		22,883
Faith-based:
Mortgage		307,679		—		—		—		—		307,679
Construction		30,838		—		—		—		—		30,838
Industrial revenue bonds		921		—		—		—		—		921
Other		92		—		—		—		—		92
Total	$	726,239	$	—	$	—	$	—	$	—	$	726,239
December 31, 2017
Commercial and industrial	$	236,394	$	—	$	—	$	—	$	—	$	236,394
Real estate:
Commercial:
Mortgage		94,675		—		—		—		—		94,675
Construction		9,359		—		—		—		—		9,359
Faith-based:
Mortgage		316,073		—		—		—		—		316,073
Construction		25,948		—		—		—		—		25,948
Industrial revenue bonds		3,374		—		—		—		—		3,374
Other		408		—		—		—		—		408
Total	$	686,231	$	—	$	—	$	—	$	—	$	686,231

The following table presents the credit exposure of the loan portfolio as of September 30, 2018 and December 31, 2017:

	Loans		Performing		Nonperforming
	Subject to		Loans Subject to		Loans Subject
	Normal		Special		to Special
*(In thousands)*	Monitoring¹		Monitoring²		Monitoring²		Total Loans
September 30, 2018
Commercial and industrial	$	267,696	$	3,158	$	—	$	270,854
Real estate:
Commercial:
Mortgage		91,998		974		—		92,972
Construction		22,883		—		—		22,883
Faith-based:
Mortgage		307,596		83		—		307,679
Construction		30,838		—		—		30,838
Industrial Revenue Bonds		921		—		—		921
Other		92		—		—		92
Total	$	722,024	$	4,215	$	—	$	726,239
December 31, 2017
Commercial and industrial	$	234,271	$	2,123	$	—	$	236,394
Real estate:
Commercial:
Mortgage		93,788		887		—		94,675
Construction		9,359		—		—		9,359
Faith-based:
Mortgage		316,042		31		—		316,073
Construction		25,948		—		—		25,948
Industrial revenue bonds		3,374		—		—		3,374
Other		408		—		—		408
Total	$	683,190	$	3,041	$	—	$	686,231

¹	Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligations.
²	Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention.

Impaired loans consist primarily of nonaccrual loans, loans greater than 90 days past due and still accruing interest and troubled debt restructurings, both performing and nonperforming. Troubled debt restructuring involves the granting of a concession to a borrower experiencing financial difficulty resulting in the modification of terms of the loan, such as changes in payment schedule or interest rate. Management measures impairment in accordance with FASB ASC 310, “Allowance for Credit Losses.” There were no impaired loans, loans delinquent 90 days or more and still accruing, or loans classified as troubled debt restructuring at September 30, 2018 and December 31, 2017.

There were no foreclosed loans recorded as other real estate owned as of September 30, 2018 and December 31, 2017.

A summary of the activity in the allowance for loan losses from December 31, 2017 to September 30, 2018 is as follows:

	December 31,		Charge-						September 30,
*(In thousands)*	2017		Offs		Recoveries		Provision		2018
Commercial and industrial	$	3,652	$	—	$	15	$	535	$	4,202
Real estate:
Commercial:
Mortgage		1,394		—		—		(9)		1,385
Construction		70		—		—		100		170
Faith-based:
Mortgage		3,962		—		—		(105)		3,857
Construction		196		—		—		34		230
Industrial Revenue Bonds		52		—		—		(38)		14
Other		879		—		—		(517)		362
Total	$	10,205	$	—	$	15	$	—	$	10,220

A summary of the activity in the allowance for loan losses from December 31, 2016 to September 30, 2017 is as follows:

	December 31,		Charge-						September 30,
*(In thousands)*	2016		Offs		Recoveries		Provision		2017
Commercial and industrial	$	3,261	$	—	$	27	$	(61)	$	3,227
Real estate:
Commercial:
Mortgage		1,662		—		—		(160)		1,502
Construction		47		—		—		54		101
Faith-based:
Mortgage		4,027		—		—		20		4,047
Construction		85		—		—		(26)		59
Industrial Revenue Bonds		101		—		—		(37)		64
Other		992		—		—		210		1,202
Total	$	10,175	$	—	$	27	$	—	$	10,202