XML 25 R14.htm IDEA: XBRL DOCUMENT
v3.21.1

Loans by Type | 3 Months Ended
--- | ---
Mar. 31, 2021
Receivables [Abstract] |
Loans by Type | Note 6 – Loans by Type A summary of loan categories is as follows:
(In thousands) |  | March 31, 2021 |  | December 31, 2020
Commercial and industrial |  | $ | 302,747 |  | $ | 298,984
Real estate: |  |  |  |  |  |
Commercial: |  |  |  |  |  |
Mortgage |  |  | 96,630 |  |  | 100,419
Construction |  |  | 23,766 |  |  | 25,090
Faith-based: |  |  |  |  |  |
Mortgage |  |  | 331,153 |  |  | 333,661
Construction |  |  | 20,800 |  |  | 23,818
Paycheck Protection Program (“PPP”) |  |  | 113,474 |  |  | 109,704
Other |  |  | 5 |  |  | —
Total loans |  | $ | 888,575 |  | $ | 891,676
In support of the Coronavirus, Aid, Relief, and Economic Security Act (the “CARES Act”), the Bank had processed nearly 450 applications for PPP loans of approximately $210,000,000 to provide much-needed cash to small business and self-employed taxpayers during the COVID-19 crisis. The loans were primarily made to existing bank customers and are 100% guaranteed by the Small Business Administration and no allowance for credit loss was recorded for these loans. -12- Table of Contents The following table presents the aging of loans by loan categories at March 31, 2021 and December 31, 2020:
|  | Performing |  | Nonperforming |  |
(In thousands) |  | Current |  | 30-59 Days |  | 60-89 Days |  | 90 Days and Over |  | Non- accrual |  | Total Loans
March 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 302,747 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 302,747
Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  | 96,630 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 96,630
Construction |  |  | 23,766 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 23,766
Faith-based: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  | 331,153 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 331,153
Construction |  |  | 20,800 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 20,800
PPP |  |  | 113,474 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 113,474
Other |  |  | 5 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 5
Total |  | $ | 888,575 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 888,575
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 298,984 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 298,984
Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  | 100,419 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 100,419
Construction |  |  | 25,090 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 25,090
Faith-based: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  | 333,661 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 333,661
Construction |  |  | 23,818 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 23,818
PPP |  |  | 109,704 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 109,704
Total |  | $ | 891,676 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 891,676
The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of March 31, 2021 and December 31, 2020:
(In thousands) |  | Loans Subject to Normal Monitoring1 |  | Performing Loans Subject to Special Monitoring2 |  | Nonperforming Loans Subject to Special Monitoring2 |  | Total Loans
March 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 289,698 |  | $ | 13,049 |  | $ | — |  | $ | 302,747
Real estate |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  | 95,305 |  |  | 1,325 |  |  | — |  |  | 96,630
Construction |  |  | 23,766 |  |  | — |  |  | — |  |  | 23,766
Faith-based: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  | 328,105 |  |  | 3,048 |  |  | — |  |  | 331,153
Construction |  |  | 20,800 |  |  | — |  |  | — |  |  | 20,800
PPP |  |  | 113,474 |  |  | — |  |  | — |  |  | 113,474
Other |  |  | 5 |  |  | — |  |  | — |  |  | 5
Total |  | $ | 871,153 |  | $ | 17,422 |  | $ | — |  | $ | 888,575
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 284,882 |  | $ | 14,102 |  | $ | — |  | $ | 298,984
Real estate |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  | 99,044 |  |  | 1,375 |  |  | — |  |  | 100,419
Construction |  |  | 25,090 |  |  | — |  |  | — |  |  | 25,090
Faith-based: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  | 330,554 |  |  | 3,107 |  |  | — |  |  | 333,661
Construction |  |  | 23,818 |  |  | — |  |  | — |  |  | 23,818
PPP |  |  | 109,704 |  |  | — |  |  | — |  |  | 109,704
Total |  | $ | 873,092 |  | $ | 18,584 |  | $ | — |  | $ | 891,676
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.
-13- Table of Contents The Company had two loans that were considered impaired in the amount of $2,912,000 at March 31, 2021. These loans were individually evaluated for impairment, resulting in a specific allowance for credit loss of $750,000. The Company had one loan that was considered impaired in the amount of $2,500,000 at December 31, 2020. This loan was individually evaluated for impairment, resulting in a specific allowance for credit loss of $500,000. There were no foreclosed loans recorded as other real estate owned (included in other assets) as of March 31, 2021 or December 31, 2020. There were no loans considered troubled debt restructurings as of March 31, 2021. There were two loans that were considered troubled debt restructurings at December 31, 2020 and these loans were removed from troubled debt restructuring status during the first quarter 2021. The recorded investment by category for loans considered as troubled debt restructuring during the year ended December 31, 2020 is as follows:
(In thousands) |  | Number of Loans |  | Pre-Modification Outstanding Balance |  | Post-Modification Outstanding Balance
Commercial and industrial |  | 1 |  | $ | 8,773 |  | $ | 8,773
Faith-based real estate |  | 1 |  |  | 1,029 |  |  | 1,029
Total |  | 2 |  | $ | 9,802 |  | $ | 9,802
During the year ended December 31, 2020, two loans were restructured to change the amortization schedule to reduce payments from the borrowers while the contractual interest rate remained unchanged. These loans did not have a specific allowance for credit loss allocated to them at December 31, 2020. There were no loans restructured that subsequently defaulted during the year ended December 31, 2020. A summary of the activity in allowance for credit losses (“ACL”) by category for the period ended March 31, 2021 and December 31, 2020 is as follows:
(In thousands) |  | C&I |  | CRE |  | Faith-based CRE |  | Construction |  | Total
Allowance for credit losses on loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2020 |  | $ | 4,635 |  | $ | 1,175 |  | $ | 5,717 |  | $ | 417 |  | $ | 11,944
Charge Offs |  |  | — |  |  | — |  |  | — |  |  | — |  |  | —
(Release of) provision for credit losses |  |  | 54 |  |  | (65) |  |  | (200) |  |  | (29) |  |  | (240)
Recoveries |  |  | 2 |  |  | — |  |  | 15 |  |  | — |  |  | 17
Balance at March 31, 2021 |  | $ | 4,691 |  | $ | 1,110 |  | $ | 5,532 |  | $ | 388 |  | $ | 11,721
The decrease in the provision for credit losses on loans during the quarter ended March 31, 2021 is due to the Company’s forecast of macroeconomic factors, which improved during the first quarter 2021.
(In thousands) |  | C&I |  | CRE |  | Faith-based CRE |  | Construction |  | Total
Allowance for credit losses on loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2019 |  | $ | 4,874 |  | $ | 1,528 |  | $ | 3,842 |  | $ | 312 |  | $ | 10,556
Cumulative effect of accounting change (ASU 2016-13) |  |  | (526) |  |  | (401) |  |  | 1,636 |  |  | 14 |  |  | 723
Balance at January 1, 2020 |  |  | 4,348 |  |  | 1,127 |  |  | 5,478 |  |  | 326 |  |  | 11,279
Provision for credit losses |  |  | 268 |  |  | 48 |  |  | 238 |  |  | 91 |  |  | 645
Recoveries |  |  | 19 |  |  | — |  |  | 1 |  |  | — |  |  | 20
Balance at December 31, 2020 |  | $ | 4,635 |  | $ | 1,175 |  | $ | 5,717 |  | $ | 417 |  | $ | 11,944
The increase in the provision for credit losses on loans during the year ended December 31, 2020 is due to the Company’s forecast of macroeconomic factors, which decreased during 2020, primarily due to the COVID-19 pandemic. A summary of the activity in the allowance for loan losses from December 31, 2019 to March 31, 2020 is as follows:
(In thousands) |  | December 31, 2019 |  | Charge- Offs |  | Recoveries |  | Provision |  | March 31, 2020
Commercial and industrial |  | $ | 4,874 |  | $ | — |  | $ | 7 |  | $ | 213 |  | $ | 5,094
Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  | 1,528 |  |  | — |  |  | — |  |  | 24 |  |  | 1,552
Construction |  |  | 191 |  |  | — |  |  | — |  |  | (41) |  |  | 150
Faith-based: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  | 3,842 |  |  | — |  |  | 1 |  |  | 106 |  |  | 3,949
Construction |  |  | 121 |  |  | — |  |  | — |  |  | 23 |  |  | 144
Total |  | $ | 10,556 |  | $ | — |  | $ | 8 |  | $ | 325 |  | $ | 10,889

X
- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 + Details
Name: | us-gaap_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration