XML 25 R14.htm IDEA: XBRL DOCUMENT
v3.21.2

Loans by Type | 6 Months Ended
--- | ---
Jun. 30, 2021
Receivables [Abstract] |
Loans by Type | Note 6 – Loans by Type A summary of loan categories is as follows:
(In thousands) |  | June 30, 2021 |  | December 31, 2020
Commercial and industrial |  | $ | 330,714 |  | $ | 298,984
Real estate: |  |  |  |  |  |
Commercial: |  |  |  |  |  |
Mortgage |  |  | 103,878 |  |  | 100,419
Construction |  |  | 24,500 |  |  | 25,090
Faith-based: |  |  |  |  |  |
Mortgage |  |  | 331,235 |  |  | 333,661
Construction |  |  | 24,051 |  |  | 23,818
Paycheck Protection Program (“PPP”) |  |  | 56,642 |  |  | 109,704
Total loans |  | $ | 871,020 |  | $ | 891,676
In support of the Coronavirus, Aid, Relief, and Economic Security Act (the “CARES Act”), the Bank processed nearly 460 applications for PPP loans of approximately $210,000,000 cumulatively during 2021 and 2020 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 (“SBA”) with no allowance for credit loss allocation. The Company has unaccreted PPP loan fees of $1,312,000 at June 30, 2021. The following table presents the aging of loans past due by category at June 30, 2021 and December 31, 2020:
|  | Performing |  | Nonperforming |  |
(In thousands) |  | Current |  | 30-59 Days |  | 60-89 Days |  | 90 Days and Over |  | Non- accrual |  | Total Loans
June 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 330,714 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 330,714
Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  | 103,878 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 103,878
Construction |  |  | 24,500 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 24,500
Faith-based: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  | 331,235 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 331,235
Construction |  |  | 24,051 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 24,051
PPP |  |  | 56,642 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 56,642
Total |  | $ | 871,020 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 871,020
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
-13- Table of Contents The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of June 30, 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
June 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 319,477 |  | $ | 11,237 |  | $ | — |  | $ | 330,714
Real estate |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  | 103,637 |  |  | 241 |  |  | — |  |  | 103,878
Construction |  |  | 24,500 |  |  | — |  |  | — |  |  | 24,500
Faith-based: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  | 328,236 |  |  | 2,999 |  |  | — |  |  | 331,235
Construction |  |  | 24,051 |  |  | — |  |  | — |  |  | 24,051
PPP |  |  | 56,642 |  |  | — |  |  | — |  |  | 56,642
Total |  | $ | 856,543 |  | $ | 14,477 |  | $ | — |  | $ | 871,020
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.
The company had no impaired loans as of June 30, 2021. The Company had one loan considered impaired in the amount of $2,500,000 at December 31, 2020 that was individually evaluated for impairment, resulting in a specific allowance for credit loss of $500,000 at December 31, 2020. Due to improvement in borrower conditions, this loan was no longer considered impaired at June 30, 2021. There were no foreclosed loans recorded as other real estate owned (included in other assets) as of June 30, 2021 or December 31, 2020. There were no loans considered troubled debt restructurings as of June 30, 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 of 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. -14- Table of Contents A summary of the activity in allowance for credit losses (“ACL”) by category for the period ended June 30, 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 |  |  | (509) |  |  | (54) |  |  | (199) |  |  | (28) |  |  | ($790)
Recoveries |  |  | 2 |  |  | — |  |  | 15 |  |  | — |  |  | 17
Balance at June 30, 2021 |  | $ | 4,128 |  | $ | 1,121 |  | $ | 5,533 |  | $ | 389 |  | $ | 11,171
The release of provision for credit losses during the six months ended June 30, 2021 is primarily due to improved economic conditions and the removal of specific allowance for credit loss allocations on impaired loans.
(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 provision for credit losses during the year ended December 31, 2020 was due to the Company’s forecast of macroeconomic factors, which worsened during 2020, primarily due to the COVID-19 pandemic.

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