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v3.23.1

Loans by Type | 3 Months Ended
--- | ---
Mar. 31, 2023
Receivables [Abstract] |
Loans by Type | Loans by Type A summary of loans is as follows:
(In thousands) | March 31, 2023 |  | December 31, 2022
Commercial and industrial | $ | 548,923 |  |  | $ | 561,616 |
Real estate: |  |  |
Commercial: |  |  |
Mortgage | 116,202 |  |  | 108,166 |
Construction | 19,075 |  |  | 17,874 |
Faith-based: |  |  |
Mortgage | 376,630 |  |  | 387,114 |
Construction | 9,538 |  |  | 8,094 |
Other | 5 |  |  | 42 |
Total loans | $ | 1,070,373 |  |  | $ | 1,082,906 |
The following table presents the aging of loans past due by category at March 31, 2023 and December 31, 2022:
| Performing |  | Nonperforming |  |
(In thousands) | Current |  | 30-59 Days |  | 60-89 Days |  | 90 Days and Over |  | Non- accrual |  | Total Loans
March 31, 2023 |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | 548,923 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 548,923 |
Real estate |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |
Mortgage | 116,202 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 116,202 |
Construction | 19,075 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 19,075 |
Faith-based: |  |  |  |  |  |  |  |  |  |  |
Mortgage | 376,630 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 376,630 |
Construction | 9,538 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 9,538 |
Other | 5 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 5 |
Total | $ | 1,070,373 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,070,373 |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | 560,466 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,150 |  |  | $ | 561,616 |
Real estate |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |
Mortgage | 108,166 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 108,166 |
Construction | 17,874 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 17,874 |
Faith-based: |  |  |  |  |  |  |  |  |  |  |
Mortgage | 387,114 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 387,114 |
Construction | 8,094 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 8,094 |
Other | 42 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 42 |
Total | $ | 1,081,756 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,150 |  |  | $ | 1,082,906 |
The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of March 31, 2023 and December 31, 2022:
(In thousands) | Loans Subject to Normal Monitoring 1 |  | Performing Loans Subject to Special Monitoring 2 |  | Nonperforming Loans Subject to Special Monitoring 2 |  | Total Loans
March 31, 2023 |  |  |  |  |  |  |
Commercial and industrial | $ | 537,698 |  |  | $ | 11,225 |  |  | $ | — |  |  | $ | 548,923 |
Real estate |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |
Mortgage | 116,202 |  |  | — |  |  | — |  |  | 116,202 |
Construction | 19,075 |  |  | — |  |  | — |  |  | 19,075 |
Faith-based: |  |  |  |  |  |  |
Mortgage | 372,951 |  |  | 3,679 |  |  | — |  |  | 376,630 |
Construction | 9,538 |  |  | — |  |  | — |  |  | 9,538 |
Other | 5 |  |  | — |  |  | — |  |  | 5 |
Total | $ | 1,055,469 |  |  | $ | 14,904 |  |  | $ | — |  |  | $ | 1,070,373 |
December 31, 2022 |  |  |  |  |  |  |
Commercial and industrial | $ | 549,241 |  |  | $ | 11,225 |  |  | $ | 1,150 |  |  | $ | 561,616 |
Real estate |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |
Mortgage | 108,166 |  |  | — |  |  | — |  |  | 108,166 |
Construction | 17,874 |  |  | — |  |  | — |  |  | 17,874 |
Faith-based: |  |  |  |  |  |  |
Mortgage | 386,169 |  |  | 945 |  |  | — |  |  | 387,114 |
Construction | 8,094 |  |  | — |  |  | — |  |  | 8,094 |
Other | 42 |  |  | — |  |  | — |  |  | 42 |
Total | $ | 1,069,586 |  |  | $ | 12,170 |  |  | $ | 1,150 |  |  | $ | 1,082,906 |
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 adopted Accounting Standards Update ("ASU") 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures ("ASU 2022-02") effective January 1, 2023. The amendments in ASU 2022-02 eliminated the recognition and measure of troubled debt restructurings and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty. In some cases, these modifications may result in new loans. Loan modifications to borrowers experiencing financial difficulty may be in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, a term extension, or a combination thereof, among other things. The following table shows the amortized cost of loans at March 31, 2023 that were both experiencing financial difficulty and modified during the three months ended March 31, 2023, segregated by category and type of modification.
(In thousands) | Payment Delay |  | Term Extension |  | Interest Rate Reduction |  | Combination Term Extension and Interest Rate Reduction |  | Percentage of Total Loans Held for Investment
March 31, 2023 |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | — |  |  | $ | 11,225 |  |  | $ | — |  |  | $ | — |  |  | 2.04 | %
Total | $ | — |  |  | $ | 11,225 |  |  | $ | — |  |  | $ | — |  |  | 1.05 | %
There were two loans modified during the three months ended March 31, 2023. The terms were extended by periods of two and three years and there was not an interest rate reduction associated with the modifications. The following table shows the performance of loans that have been modified to borrowers experiencing financial difficulty during the three months ended March 31, 2023.
(In thousands) | Current |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90 Days or More Past Due |  | Total Past Due
March 31, 2023 |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | 11,225 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Total | $ | 11,225 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
There were no modified loans that had a payment default during the three months ended March 31, 2023 and that had been modified due to the borrower experiencing financial difficulty within the 12 previous months preceding the default. Upon the Company's determination that a modified loan has subsequently been deemed uncollectible, the loan is written off. There were no loans written off during the three months ended March 31, 2023. Prior to the adoption of ASU 2022-02, there were no loans considered troubled debt restructurings as of March 31, 2022 or December 31, 2022. The Company had no loans evaluated for expected credit losses on an individual basis as of March 31, 2023 or December 31, 2022. There were no foreclosed loans recorded as other real estate owned as of March 31, 2023 or December 31, 2022. A summary of the activity in the allowance for credit losses (“ACL”) by category for the three-month period ended March 31, 2023 and year-ended December 31, 2022 is as follows:
(In thousands) | C&I |  | CRE |  | Faith-based CRE |  | Construction |  | Total
Balance at December 31, 2021 | $ | 5,034 |  |  | $ | 1,031 |  |  | $ | 5,684 |  |  | $ | 292 |  |  | $ | 12,041 |
Provision for (release of) credit losses | 931 |  |  | (91) |  |  | 753 |  |  | (108) |  |  | 1,485 |
Recoveries | 13 |  |  | — |  |  | — |  |  | — |  |  | 13 |
Balance at December 31, 2022 | $ | 5,978 |  |  | $ | 940 |  |  | $ | 6,437 |  |  | $ | 184 |  |  | $ | 13,539 |
(Release of) provision for credit losses (1) | (68) |  |  | 77 |  |  | (314) |  |  | 20 |  |  | (285) |
Recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |
Balance at March 31, 2023 | $ | 5,910 |  |  | $ | 1,017 |  |  | $ | 6,123 |  |  | $ | 204 |  |  | $ | 13,254 |
(1) | For the three-month period ended March 31, 2023 and year-ended December 31, 2022, there was a release of credit losses of $55,000 and $135,000, respectively, for unfunded commitments.

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- 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 https://asc.fasb.org/subtopic&trid=2196772 + Details
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