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Loans by Type
 9 Months Ended
Sep. 30, 2023
Receivables [Abstract]  
Loans by Type Loans by Type
A summary of loans is as follows:
(In thousands)September 30,
2023		December 31,
2022
Commercial and industrial $517,310 $561,616 
Real estate:
Commercial:
Mortgage 115,742 108,166 
Construction 21,101 17,874 
Faith-based:
Mortgage 376,186 387,114 
Construction 9,249 8,094 
Other31 42 
Total loans $1,039,619 $1,082,906 
The following table presents the aging of loans past due by category at September 30, 2023 and December 31, 2022:
PerformingNonperforming
(In thousands)Current30-59
Days		60-89
Days		90
Days
and
Over		Non-
accrual		Total
Loans
September 30, 2023
Commercial and industrial $517,310 $— $— $— $— $517,310 
Real estate
Commercial:
Mortgage 115,742 — — — — 115,742 
Construction 21,101 — — — — 21,101 
Faith-based:
Mortgage 376,186 — — — — 376,186 
Construction 9,249 — — — — 9,249 
Other31 — — — — 31 
Total $1,039,619 $— $— $— $— $1,039,619 
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 
Other42 — — — — 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 September 30, 2023 and December 31, 2022:
(In thousands)
Loans
Subject to
Normal
Monitoring1
Performing
Loans Subject
to Special
Monitoring2
Nonperforming
Loans Subject
to Special
Monitoring2
Total Loans
September 30, 2023
Commercial and industrial $517,310 $— $— $517,310 
Real estate
Commercial:
Mortgage 115,742 — — 115,742 
Construction 21,101 — — 21,101 
Faith-based:
Mortgage 372,708 3,478 — 376,186 
Construction 9,249 — — 9,249 
Other31 — — 31 
Total $1,036,141 $3,478 $— $1,039,619 
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 
Other42 — — 42 
Total $1,069,586 $12,170 $1,150 $1,082,906 
1 Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligations.
2 Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention.
The Company adopted Accounting Standards Update ("ASU") 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures ("ASU 2022-02") effective January 1, 2023. The amendments in ASU 2022-02 eliminated the recognition and measure of troubled debt restructurings and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty. In some cases, these modifications may result in new loans. Loan modifications to borrowers experiencing financial difficulty may be in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, a term extension, or a combination thereof, among other things.
The following table shows the amortized cost of loans at September 30, 2023 that were both experiencing financial difficulty and modified during the nine months ended September 30, 2023, segregated by category and type of modification.
(In thousands)Payment DelayTerm ExtensionInterest Rate ReductionCombination Term Extension and Interest Rate ReductionPercentage of Total Loans Held for Investment
September 30, 2023
Commercial and industrial$— $10,709 $— $— 2.07 %
Total$— $10,709 $— $— 1.03 %
There were two loans modified during the nine months ended September 30, 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 nine months ended September 30, 2023.
(In thousands)Current30-59 Days Past Due60-89 Days Past Due90 Days or More Past DueTotal Past Due
September 30, 2023
Commercial and industrial$10,709 $— $— $— $— 
Total$10,709 $— $— $— $— 
There were no modified loans that had a payment default during the nine months ended September 30, 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 nine months ended September 30, 2023.
Prior to the adoption of ASU 2022-02, there were no loans considered troubled debt restructurings as of September 30, 2022 or December 31, 2022.
The Company had no loans evaluated for expected credit losses on an individual basis as of September 30, 2023. The Company had one loan that was considered an individually evaluated credit at December 31, 2022, with no specific allowance. This loan was paid off in full in January 2023. There were no foreclosed loans recorded as other real estate owned as of September 30, 2023 or December 31, 2022.
A summary of the activity in the allowance for credit losses (“ACL”) by category for the nine month period ended September 30, 2023 and year-ended December 31, 2022 is as follows:
(In thousands)C&ICREFaith-based
CRE		ConstructionTotal
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)
(275)72 (48)31 (220)
Recoveries — — — — — 
Balance at September 30, 2023
$5,703 $1,012 $6,389 $215 $13,319 
(1)
For the nine month period ended September 30, 2023 and year-ended December 31, 2022, there was a release of credit losses of $115,000 and $135,000, respectively, for unfunded commitments.