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Loans by Type | 6 Months Ended
--- | ---
Jun. 30, 2025
Receivables [Abstract] |
Loans by Type | Loans by Type A summary of loans is as follows:
(In thousands) | June 30, 2025 |  | December 31, 2024
Commercial and industrial | $ | 583,582 |  |  | $ | 559,262 |
Real estate: |  |  |
Commercial: |  |  |
Mortgage | 113,385 |  |  | 119,194 |
Construction | 9,132 |  |  | 9,134 |
Faith-based: |  |  |
Mortgage | 388,268 |  |  | 368,881 |
Construction | 22,637 |  |  | 25,518 |
Total loans | $ | 1,117,004 |  |  | $ | 1,081,989 |
The following table presents the aging of loans past due by category at June 30, 2025 and December 31, 2024:
| Performing |  | Nonperforming |  |
(In thousands) | Current |  | 30-59 Days |  | 60-89 Days |  | 90 Days and Over |  | Non- accrual |  | Total Loans
June 30, 2025 |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | 583,582 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 583,582 |
Real estate |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |
Mortgage | 110,005 |  |  | — |  |  | — |  |  | — |  |  | 3,380 |  |  | 113,385 |
Construction | 9,132 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 9,132 |
Faith-based: |  |  |  |  |  |  |  |  |  |  |
Mortgage | 388,268 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 388,268 |
Construction | 22,637 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 22,637 |
Total | $ | 1,113,624 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 3,380 |  |  | $ | 1,117,004 |
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | 559,262 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 559,262 |
Real estate |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |
Mortgage | 119,194 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 119,194 |
Construction | 9,134 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 9,134 |
Faith-based: |  |  |  |  |  |  |  |  |  |  |
Mortgage | 368,881 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 368,881 |
Construction | 25,518 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 25,518 |
Total | $ | 1,081,989 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,081,989 |
The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of June 30, 2025 and December 31, 2024:
(In thousands) | Loans Subject to Normal Monitoring 1 |  | Performing Loans Subject to Special Monitoring 2 |  | Nonperforming Loans Subject to Special Monitoring 2 |  | Total Loans
June 30, 2025 |  |  |  |  |  |  |
Commercial and industrial | $ | 553,237 |  |  | $ | 30,345 |  |  | $ | — |  |  | $ | 583,582 |
Real estate |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |
Mortgage | 105,722 |  |  | 4,283 |  |  | 3,380 |  |  | 113,385 |
Construction | 9,132 |  |  | — |  |  | — |  |  | 9,132 |
Faith-based: |  |  |  |  |  |  |
Mortgage | 376,528 |  |  | 11,740 |  |  | — |  |  | 388,268 |
Construction | 22,637 |  |  | — |  |  | — |  |  | 22,637 |
Total | $ | 1,067,256 |  |  | $ | 46,368 |  |  | $ | 3,380 |  |  | $ | 1,117,004 |
December 31, 2024 |  |  |  |  |  |  |
Commercial and industrial | $ | 527,690 |  |  | $ | 31,572 |  |  | $ | — |  |  | $ | 559,262 |
Real estate |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |
Mortgage | 116,063 |  |  | 3,131 |  |  | — |  |  | 119,194 |
Construction | 9,134 |  |  | — |  |  | — |  |  | 9,134 |
Faith-based: |  |  |  |  |  |  |
Mortgage | 352,356 |  |  | 16,525 |  |  | — |  |  | 368,881 |
Construction | 25,518 |  |  | — |  |  | — |  |  | 25,518 |
Total | $ | 1,030,761 |  |  | $ | 51,228 |  |  | $ | — |  |  | $ | 1,081,989 |
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.
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 that were both experiencing financial difficulty and modified during the six months ended June 30, 2025, 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
Commercial and industrial | $ | — |  |  | $ | 29,007 |  |  | $ | — |  |  | $ | — |  |  | 4.97 | %
Total | $ | — |  |  | $ | 29,007 |  |  | $ | — |  |  | $ | — |  |  | 2.60 | %
There were two loans modified during the six months ended June 30, 2025. There were no loans modified during the six months ended June 30, 2024. Both loans modified during the six months ended June 30, 2025 were due to term extensions coupled with an interest rate increase. The following table shows the payment status of loans that have been modified to borrowers experiencing financial difficulty in the last twelve months:
(In thousands) | Current |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90 Days or More Past Due |  | Total Past Due
Commercial and industrial | $ | 29,007 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | — | %
Total | $ | 29,007 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
At June 30, 2025, the Company had no commitments to lend additional funds to borrowers experiencing financial difficulty for which the Company modified the terms of the loans in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension during the current period. There were no modified loans that had a payment default during the six months ended June 30, 2025 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 six months ended June 30, 2025. At June 30, 2025, the Company had two non-accrual loans totaling $3.4 million that had an allowance for credit losses specifically allocated to them of $160,000 based on an evaluation of expected credit losses. There were no non-accrual loans at December 31, 2024. The Company did not record any interest income on non-accrual loans during the three and six months ended June 30, 2025 or June 30, 2024. There were no foreclosed loans recorded as other real estate owned as of June 30, 2025 or December 31, 2024. A summary of the activity in the allowance for credit losses (“ACL”) by category for the six months ended June 30, 2025 and year-ended December 31, 2024 is as follows:
(In thousands) | C&I |  | CRE |  | Faith-based CRE |  | Construction |  | Total
Balance at January 1, 2024 | $ | 5,412 |  |  | $ | 1,093 |  |  | $ | 6,476 |  |  | $ | 108 |  |  | $ | 13,089 |
Provision for (release of) credit losses | 485 |  |  | (70) |  |  | (218) |  |  | 109 |  |  | 306 |
Balance at December 31, 2024 | $ | 5,897 |  |  | $ | 1,023 |  |  | $ | 6,258 |  |  | $ | 217 |  |  | $ | 13,395 |
Provision for credit losses (1) | 539 |  |  | 126 |  |  | 231 |  |  | 5 |  |  | 901 |
Balance at June 30, 2025 | $ | 6,436 |  |  | $ | 1,149 |  |  | $ | 6,489 |  |  | $ | 222 |  |  | $ | 14,296 |
(1) | For the six months ended June 30, 2025, there was a provision for credit losses of $29,000 for unfunded commitments.

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- Definition The entire disclosure for claims held for amounts due to 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 -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-10/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 835 -SubTopic 30 -Name Accounting Standards Codification -Section 45 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482925/835-30-45-2 + Details
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