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Loans and Allowance for Credit Losses on Loans | 6 Months Ended
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Jun. 30, 2024
Receivables [Abstract] |
Loans and Allowance for Credit Losses on Loans | Loans and Allowance for Credit Losses on Loans Loans The following table presents the composition of the loan portfolio as of June 30, 2024 and December 31, 2023:
($ in thousands) |  | June 30, 2024 |  | December 31, 2023
Commercial real estate |  | $ | 931,284 |  |  | $ | 885,585 |
SBA—real estate |  | 223,754 |  |  | 224,695 |
SBA—non-real estate |  | 18,641 |  |  | 14,997 |
C&I |  | 188,557 |  |  | 120,970 |
Home mortgage |  | 506,873 |  |  | 518,024 |
Consumer |  | 997 |  |  | 1,574 |
Gross loans receivable |  | 1,870,106 |  |  | 1,765,845 |
Allowance for credit losses |  | (22,760) |  |  | (21,993) |
Loans receivable, net(1) |  | $ | 1,847,346 |  |  | $ | 1,743,852 |
(1)Includes net deferred loan costs and unamortized premiums of $18 thousand and $140 thousand as of June 30, 2024 and December 31, 2023, respectively. No loans were outstanding to related parties as of June 30, 2024 and December 31, 2023. Allowance for Credit Losses The Company employs a modeled approach that takes into account current and future economic conditions to estimate lifetime expected losses on a collective basis. With the adoption of Current Expected Credit Losses, the Company elected not to consider accrued interest receivable in its estimated credit losses because the Company writes off uncollectible accrued interest receivable in a timely manner. The Company considers writing off accrued interest amounts once the amounts become 90 days past due to be considered within a timely manner. The Company has elected to write off accrued interest receivable by reversing interest income. The Company uses transition matrices to develop the Probability of Default ("PD") and Loss Given Default ("LGD") approach, incorporating quantitative factors and qualitative considerations in the calculation of the allowance for credit losses for collectively assessed loans. The model provides forecasts of PD and LGD based on national unemployment rates using regression analysis. The Company incorporates future economic conditions using a weighted multiple scenario approach: baseline and adverse. The Company applies a reasonable and supportable period of one year for the baseline scenario and two years for the adverse scenario, after which loss assumptions revert to historical loss information through a one-year reversion period for the baseline scenario and a two-year reversion period for the adverse scenario. Additionally, the Company aggregated loan portfolio based on similar risk characteristics. The Company elected to use the Call Report codes and loan risk ratings for loan segmentation in allowance for credit losses. In order to quantify the credit risk impact of other trends and changes within the loan portfolio, the Company utilizes qualitative adjustments to the modeled estimated loss approaches. Included in the qualitative portion of our analysis of the allowance for credit losses are key inputs including GDP, unemployment rates, interest rates, asset quality ratios, loan portfolio concentration, California house price index and commercial real estate price index. The parameters for making adjustments are established under a Credit Risk Matrix that provides different possible scenarios for each of the factors listed below. The Credit Risk Matrix and the possible scenarios enable the Bank to qualitatively adjust the loss rates. This matrix considers the following nine factors, which are patterned after the guidelines provided under the Federal Financial Institutions Examination Council Interagency Policy Statement on the Allowance for Credit Losses, updated to reflect the adoption of Current Expected Credit Losses: • Changes in lending policies and procedures, including changes in underwriting standards and practices for collection, charge-offs, and recoveries; • Actual and expected changes in national and local economic and business conditions and developments in which the institution operates that affect the collectivity of loans; • Changes in the nature and volume of the loan portfolio; • Changes in the experience, ability, and depth of lending management and staff; • Changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified loans; • Changes in the quality of the credit review function; • Changes in the value of the underlying collateral for loans that are not collateral-dependent; • The existence, growth, and effect of any concentrations of credit, and • The effect of other external factors, such as the regulatory, legal and technological environments; competition; and events such as natural disasters. The Company segments loans primarily by Call Report codes (collateral type) and loan risk ratings, considering that the same type of loans share considerable similar risk characteristics. For loans that do not share similar risk characteristics such as nonaccrual loans above $500 thousand, the Company evaluates these loans on an individual basis in accordance with ASC 326. Such nonaccrual loans are considered to have different risk profiles than performing loans and are therefore evaluated individually. The Company elected to collectively assess nonaccrual loans with balances below $500 thousand along with the performing and accrual loans, in order to reduce the operational burden of individually assessing small nonaccrual loans with immaterial balances. For individually assessed loans, the allowance for credit losses is measured using either 1) the present value of future cash flows discounted at the loan’s effective interest rate; or 2) the fair value of the collateral, if the loan is collateral-dependent. For the collateral-dependent loans, the Company obtains a new appraisal to determine the fair value of collateral. The appraisals are based on an “as-is” valuation. To ensure that appraised values remain current, the Company obtains updated appraisals every twelve months from a qualified independent appraiser. If the fair value of the collateral is less than the amortized balance of the loan, the Company recognizes an allowance for credit losses with a corresponding charge to the provision for credit losses. The Company maintains a separate allowance for credit losses for its off-balance sheet commitments. The Company uses an estimated funding rate to allocate an allowance to undrawn exposures. This funding rate is used as a credit conversion factor to capture how much undrawn lines of credit can potentially become drawn at any point. The funding rate is determined based on a look-back period of 8 quarters. Credit loss is not estimated for off-balance sheet commitments that are unconditionally cancellable by the Company. The following table summarizes the activity in the allowance for credit losses on loans by portfolio segment for the three and six months ended June 30, 2024 and 2023:
($ in thousands) |  | Commercial Real Estate |  | SBA— Real Estate |  | SBA —Non- Real Estate |  | C&I |  | Home Mortgage |  | Consumer |  | Total
Three Months Ended June 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 8,044 |  |  | $ | 2,793 |  |  | $ | 229 |  |  | $ | 1,663 |  |  | $ | 9,391 |  |  | $ | 9 |  |  | $ | 22,129 |
Provision for (reversal of) credit losses |  | (118) |  |  | 134 |  |  | 20 |  |  | 488 |  |  | 108 |  |  | (5) |  |  | 627 |
Charge-offs |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Recoveries |  | — |  |  | — |  |  | 4 |  |  | — |  |  | — |  |  | — |  |  | 4 |
Ending balance |  | $ | 7,926 |  |  | $ | 2,927 |  |  | $ | 253 |  |  | $ | 2,151 |  |  | $ | 9,499 |  |  | $ | 4 |  |  | $ | 22,760 |
Three Months Ended June 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 6,784 |  |  | $ | 1,218 |  |  | $ | 67 |  |  | $ | 1,270 |  |  | $ | 11,472 |  |  | $ | 3 |  |  | $ | 20,814 |
Provision for (reversal of) credit losses |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Charge-offs |  | — |  |  | — |  |  | (20) |  |  | — |  |  | — |  |  | — |  |  | (20) |
Recoveries |  | — |  |  | — |  |  | 8 |  |  | — |  |  | — |  |  | — |  |  | 8 |
Ending balance |  | $ | 6,784 |  |  | $ | 1,218 |  |  | $ | 55 |  |  | $ | 1,270 |  |  | $ | 11,472 |  |  | $ | 3 |  |  | $ | 20,802 |
($ in thousands) |  | Commercial Real Estate |  | SBA— Real Estate |  | SBA —Non- Real Estate |  | C&I |  | Home Mortgage |  | Consumer |  | Total
Six Months Ended June 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 7,915 |  |  | $ | 1,657 |  |  | $ | 147 |  |  | $ | 1,215 |  |  | $ | 11,045 |  |  | $ | 14 |  |  | $ | 21,993 |
Provision for (reversal of) credit losses |  | 11 |  |  | 1,336 |  |  | 91 |  |  | 936 |  |  | (1,544) |  |  | (10) |  |  | 820 |
Charge-offs |  | — |  |  | (66) |  |  | — |  |  | — |  |  | (2) |  |  | — |  |  | (68) |
Recoveries |  | — |  |  | — |  |  | 15 |  |  | — |  |  | — |  |  | — |  |  | 15 |
Ending balance |  | $ | 7,926 |  |  | $ | 2,927 |  |  | $ | 253 |  |  | $ | 2,151 |  |  | $ | 9,499 |  |  | $ | 4 |  |  | $ | 22,760 |
Six Months Ended June 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 6,951 |  |  | $ | 1,607 |  |  | $ | 207 |  |  | $ | 1,643 |  |  | $ | 8,826 |  |  | $ | 7 |  |  | $ | 19,241 |
Impact of CECL adoption |  | 875 |  |  | (238) |  |  | (142) |  |  | (320) |  |  | 1,753 |  |  | (4) |  |  | 1,924 |
Provision for (reversal of) credit losses |  | (951) |  |  | (140) |  |  | (7) |  |  | (53) |  |  | 893 |  |  | — |  |  | (258) |
Charge-offs |  | (91) |  |  | (11) |  |  | (34) |  |  | — |  |  | — |  |  | — |  |  | (136) |
Recoveries |  | — |  |  | — |  |  | 31 |  |  | — |  |  | — |  |  | — |  |  | 31 |
Ending balance |  | $ | 6,784 |  |  | $ | 1,218 |  |  | $ | 55 |  |  | $ | 1,270 |  |  | $ | 11,472 |  |  | $ | 3 |  |  | $ | 20,802 |
Collateral-dependent loans are loans where repayment is expected to be provided solely by the sale of the underlying collateral and there are no other available and reliable sources of repayment. The estimated credit losses for these loans are based on the collateral’s fair value less selling costs. In most cases, the Company records a partial charge-off to reduce the loan’s carrying value to the collateral’s fair value less selling costs at the time of foreclosure. As of June 30, 2024 and December 31, 2023, there were $2.9 million and $5.2 million, respectively, of collateral-dependent loans which are primarily secured by SBA—real estate and residential real estate. The allowance for credit losses allocated to these loans as of June 30, 2024 and December 31, 2023 was $360 thousand and $355 thousand, respectively. The following table represents the amortized cost basis of collateral-dependent loans by class of loans as of June 30, 2024 and December 31, 2023, for which repayment is expected to be obtained through the sale of the underlying collateral.
($ in thousands) |  | Hotel / Motel |  |  |  | Single-Family Residential |  | Total
As of June 30, 2024 |  |  |  |  |  |  |  |
SBA—real estate |  | $ | 2,937 |  |  |  |  | $ | — |  |  | $ | 2,937 |
Total |  | $ | 2,937 |  |  |  |  | $ | — |  |  | $ | 2,937 |
As of December 31, 2023 |  |  |  |  |  |  |  |
SBA—real estate |  | $ | 2,923 |  |  |  |  | $ | — |  |  | $ | 2,923 |
Home mortgage |  | — |  |  |  |  | 2,241 |  |  | 2,241 |
Total |  | $ | 2,923 |  |  |  |  | $ | 2,241 |  |  | $ | 5,164 |
The following table presents the recorded investment in nonaccrual loans and loans past due 90 or more days and still accruing interest, by portfolio as of June 30, 2024 and December 31, 2023:
($ in thousands) |  | Nonaccrual Loans with a Related Allowance for Credit Losses |  | Nonaccrual Loans without a Related Allowance for Credit Losses |  | Total Nonaccrual Loans |  | 90 or More Days Past Due & Still Accruing |  | Total(1)
As of June 30, 2024 |  |  |  |  |  |  |  |  |  |
SBA—real estate |  | $ | 2,423 |  |  | $ | 1,142 |  |  | $ | 3,565 |  |  | $ | — |  |  | $ | 3,565 |
SBA—non-real estate |  | 192 |  |  | — |  |  | 192 |  |  | — |  |  | 192 |
C&I |  | 421 |  |  | — |  |  | 421 |  |  | — |  |  | 421 |
Home mortgage |  | 211 |  |  | — |  |  | 211 |  |  | — |  |  | 211 |
Total |  | $ | 3,247 |  |  | $ | 1,142 |  |  | $ | 4,389 |  |  | $ | — |  |  | $ | 4,389 |
As of December 31, 2023 |  |  |  |  |  |  |  |  |  |
SBA—real estate |  | $ | 2,302 |  |  | $ | 1,136 |  |  | $ | 3,438 |  |  | $ | — |  |  | $ | 3,438 |
SBA—non-real estate |  | 154 |  |  | — |  |  | 154 |  |  | — |  |  | 154 |
Home mortgage |  | 249 |  |  | 2,241 |  |  | 2,490 |  |  | — |  |  | 2,490 |
Total |  | $ | 2,705 |  |  | $ | 3,377 |  |  | $ | 6,082 |  |  | $ | — |  |  | $ | 6,082 |
(1) Excludes guaranteed portion of SBA loans of $3.5 million and $2.0 million as of June 30, 2024 and December 31, 2023, respectively. Nonaccrual loans and loans past due 90 or more days and still accruing interest include both homogeneous loans that are collectively and individually evaluated for impairment and individually classified impaired loans. The following table represents the aging analysis of the recorded investment in past due loans as of June 30, 2024 and December 31, 2023:
($ in thousands) |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | > 90 Days Past Due |  | Total Past Due(1) |  | Loans Not Past Due |  | Total(2)
As of June 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 931,284 |  |  | $ | 931,284 |
SBA—real estate |  | 1,093 |  |  | 1,054 |  |  | 2,510 |  |  | 4,657 |  |  | 219,097 |  |  | 223,754 |
SBA—non-real estate |  | 213 |  |  | — |  |  | 46 |  |  | 259 |  |  | 18,382 |  |  | 18,641 |
C&I |  | — |  |  | — |  |  | — |  |  | — |  |  | 188,557 |  |  | 188,557 |
Home mortgage |  | 2,471 |  |  | 2,878 |  |  | — |  |  | 5,349 |  |  | 501,524 |  |  | 506,873 |
Consumer |  | — |  |  | — |  |  | — |  |  | — |  |  | 997 |  |  | 997 |
Total |  | $ | 3,777 |  |  | $ | 3,932 |  |  | $ | 2,556 |  |  | $ | 10,265 |  |  | $ | 1,859,841 |  |  | $ | 1,870,106 |
As of December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 885,585 |  |  | $ | 885,585 |
SBA—real estate |  | 1,868 |  |  | 932 |  |  | 1,983 |  |  | 4,783 |  |  | 219,912 |  |  | 224,695 |
SBA—non-real estate |  | 154 |  |  | — |  |  | — |  |  | 154 |  |  | 14,843 |  |  | 14,997 |
C&I |  | — |  |  | — |  |  | — |  |  | — |  |  | 120,970 |  |  | 120,970 |
Home mortgage |  | 4,076 |  |  | 2,730 |  |  | 2,491 |  |  | 9,297 |  |  | 508,727 |  |  | 518,024 |
Consumer |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,574 |  |  | 1,574 |
Total |  | $ | 6,098 |  |  | $ | 3,662 |  |  | $ | 4,474 |  |  | $ | 14,234 |  |  | $ | 1,751,611 |  |  | $ | 1,765,845 |
(1)Excludes guaranteed portion of SBA loans of $3.0 million and $1.9 million as of June 30, 2024 and December 31, 2023, respectively. (2)Excludes accrued interest receivables of $7.5 million and $7.3 million as of June 30, 2024 and December 31, 2023, respectively. Loan Modifications to Borrowers Experiencing Financial Difficult: On January 1, 2023, the Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures”, which eliminated the accounting guidance for troubled debt restructurings (“TDRs”) while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. This guidance was applied on a prospective basis. Upon adoption of this guidance, the Company no longer establishes a specific reserve for modifications to borrowers experiencing financial difficulty, unless those loans do not share the same risk characteristics with other loans in the portfolio. Provided that is not the case, these modifications are included in their respective cohort and the allowance for credit losses is estimated on a pooled basis consistent with the other loans with similar risk characteristics. Modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, other than insignificant payment deferrals, other than insignificant term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. No charge-offs of previously modified loans were recorded for the three and six months ended June 30, 2024 and 2023. The following table presents the amortized cost of modified loans and the financial effects of the modification for the three and six months ended June 30, 2024 and 2023 by loan class and modification type:
Three Months Ended June 30, 2024 |  |  |  |  |  |  |  |
|  | Modification Type |  | Percentage to Each Loan Segment
($ in thousands) |  | Payment Delay |  | Term Extension |  | Total |
SBA—real estate |  | $ | 390 |  |  | $ | — |  |  | $ | 390 |  |  | 0.17 | %
SBA—non-real estate |  | — |  |  | 9 |  |  | 9 |  |  | 0.05 | %
C&I |  | 130 |  |  | — |  |  | 130 |  |  | 0.07 | %
Total |  | $ | 520 |  |  | $ | 9 |  |  | $ | 529 |  |  |
Three Months Ended June 30, 2023 |  |  |  |  |  |  |  |
|  | Modification Type |  | Percentage to Each Loan Segment
($ in thousands) |  | Rate Reduction and Term Extension |  | Interest Only |  | Total |
C&I |  | $ | 317 |  |  | $ | — |  |  | $ | 317 |  |  | 0.28 | %
Total |  | $ | 317 |  |  | $ | — |  |  | $ | 317 |  |  |
Six Months Ended June 30, 2024 |  |  |  |  |  |  |  |
|  | Modification Type |  | Percentage to Each Loan Segment
($ in thousands) |  | Payment Delay |  | Term Extension |  | Total |
SBA—real estate |  | $ | 1,130 |  |  | $ | — |  |  | $ | 1,130 |  |  | 0.50 | %
SBA—non-real estate |  | — |  |  | 9 |  |  | 9 |  |  | 0.05 | %
C&I |  | 130 |  |  | — |  |  | 130 |  |  | 0.07 | %
Total |  | $ | 1,260 |  |  | $ | 9 |  |  | $ | 1,269 |  |  |
Six Months Ended June 30, 2023 |  |  |  |  |  |  |  |
|  | Modification Type |  | Percentage to Each Loan Segment
($ in thousands) |  | Rate Reduction and Term Extension |  | Interest Only |  | Total |
SBA—real estate |  | $ | — |  |  | $ | 387 |  |  | $ | 387 |  |  | 0.17 | %
C&I |  | 317 |  |  | — |  |  | 317 |  |  | 0.28 | %
Total |  | $ | 317 |  |  | $ | 387 |  |  | $ | 704 |  |  |
The Company tracks the performance of modified loans. A modified loan may become delinquent and may result in a payment default (generally 90 days past due) subsequent to modification. There were no loans that received a modification during the three and six months ended June 30, 2024 and 2023 that subsequently defaulted. The Company had additional commitments totaling $2.7 million to lend to borrowers whose loans were modified as of June 30, 2024. Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. For consumer loans, a credit grade is established at inception, and generally only adjusted based on performance. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: Special Mention—Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date. Substandard—Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful—Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. The following table presents the loan portfolio's amortized cost by loan type, risk rating and year of origination as of June 30, 2024 and December 31, 2023:
|  | June 30, 2024
|  | Term Loans by Origination Year |  | Revolving Loans |  | Revolving Loans Converted to Term Loans |  | Total(1)
($ in thousands) |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  |  |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 116,680 |  |  | $ | 109,665 |  |  | $ | 260,820 |  |  | $ | 191,416 |  |  | $ | 98,294 |  |  | $ | 123,063 |  |  | $ | 25,131 |  |  | $ | — |  |  | $ | 925,069 |
Special mention |  | — |  |  | — |  |  | 582 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 582 |
Substandard |  | — |  |  | — |  |  | 4,646 |  |  | — |  |  | — |  |  | 987 |  |  | — |  |  | — |  |  | 5,633 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Subtotal |  | $ | 116,680 |  |  | $ | 109,665 |  |  | $ | 266,048 |  |  | $ | 191,416 |  |  | $ | 98,294 |  |  | $ | 124,050 |  |  | $ | 25,131 |  |  | $ | — |  |  | $ | 931,284 |
Current period charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
SBA— real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 14,850 |  |  | $ | 31,583 |  |  | $ | 43,005 |  |  | $ | 24,922 |  |  | $ | 17,561 |  |  | $ | 79,663 |  |  | $ | — |  |  | $ | — |  |  | $ | 211,584 |
Special mention |  | — |  |  | — |  |  | 1,561 |  |  | — |  |  | — |  |  | 1,066 |  |  | — |  |  | — |  |  | 2,627 |
Substandard |  | — |  |  | — |  |  | 3,179 |  |  | 2,989 |  |  | 1,142 |  |  | 2,233 |  |  | — |  |  | — |  |  | 9,543 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Subtotal |  | $ | 14,850 |  |  | $ | 31,583 |  |  | $ | 47,745 |  |  | $ | 27,911 |  |  | $ | 18,703 |  |  | $ | 82,962 |  |  | $ | — |  |  | $ | — |  |  | $ | 223,754 |
Current period charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 66 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 66 |
SBA—non-real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 5,748 |  |  | $ | 4,815 |  |  | $ | 2,459 |  |  | $ | 181 |  |  | $ | 1,388 |  |  | $ | 3,295 |  |  | $ | — |  |  | $ | — |  |  | $ | 17,886 |
Special mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard |  | — |  |  | — |  |  | 528 |  |  | — |  |  | 46 |  |  | 83 |  |  | — |  |  | — |  |  | 657 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 98 |  |  | — |  |  | — |  |  | 98 |
Subtotal |  | $ | 5,748 |  |  | $ | 4,815 |  |  | $ | 2,987 |  |  | $ | 181 |  |  | $ | 1,434 |  |  | $ | 3,476 |  |  | $ | — |  |  | $ | — |  |  | $ | 18,641 |
Current period charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
C&I |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 8,152 |  |  | $ | 14,461 |  |  | $ | 16,704 |  |  | $ | 19,189 |  |  | $ | 3,886 |  |  | $ | 525 |  |  | $ | 122,685 |  |  | $ | 2,404 |  |  | $ | 188,006 |
Special mention |  | — |  |  | 130 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 130 |
Substandard |  | — |  |  | — |  |  | 421 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 421 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Subtotal |  | $ | 8,152 |  |  | $ | 14,591 |  |  | $ | 17,125 |  |  | $ | 19,189 |  |  | $ | 3,886 |  |  | $ | 525 |  |  | $ | 122,685 |  |  | $ | 2,404 |  |  | $ | 188,557 |
Current period charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Home mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 15,730 |  |  | $ | 67,910 |  |  | $ | 293,853 |  |  | $ | 74,715 |  |  | $ | 17,941 |  |  | $ | 36,513 |  |  | $ | — |  |  | $ | — |  |  | $ | 506,662 |
Special mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 211 |  |  | — |  |  | — |  |  | 211 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Subtotal |  | $ | 15,730 |  |  | $ | 67,910 |  |  | $ | 293,853 |  |  | $ | 74,715 |  |  | $ | 17,941 |  |  | $ | 36,724 |  |  | $ | — |  |  | $ | — |  |  | $ | 506,873 |
Current period charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 4 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 993 |  |  | $ | — |  |  | $ | 997 |
Special mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Subtotal |  | $ | 4 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 993 |  |  | $ | — |  |  | $ | 997 |
Current period charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Total loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 161,164 |  |  | $ | 228,434 |  |  | $ | 616,841 |  |  | $ | 310,423 |  |  | $ | 139,070 |  |  | $ | 243,059 |  |  | $ | 148,809 |  |  | $ | 2,404 |  |  | $ | 1,850,204 |
Special mention |  | — |  |  | 130 |  |  | 2,143 |  |  | — |  |  | — |  |  | 1,066 |  |  | — |  |  | — |  |  | 3,339 |
Substandard |  | — |  |  | — |  |  | 8,774 |  |  | 2,989 |  |  | 1,188 |  |  | 3,514 |  |  | — |  |  | — |  |  | 16,465 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 98 |  |  | — |  |  | — |  |  | 98 |
Subtotal |  | $ | 161,164 |  |  | $ | 228,564 |  |  | $ | 627,758 |  |  | $ | 313,412 |  |  | $ | 140,258 |  |  | $ | 247,737 |  |  | $ | 148,809 |  |  | $ | 2,404 |  |  | $ | 1,870,106 |
Current period charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 66 |  |  | $ | — |  |  | $ | 2 |  |  | $ | — |  |  | $ | — |  |  | $ | 68 |
(1)Excludes accrued interest receivables of $7.5 million as of June 30, 2024.
|  | December 31, 2023
|  | Term Loans by Origination Year |  | Revolving Loans |  | Revolving Loans Converted to Term Loans |  | Total(1)
($ in thousands) |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  |  |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 97,114 |  |  | $ | 207,860 |  |  | $ | 154,872 |  |  | $ | 97,137 |  |  | $ | 138,908 |  |  | $ | 163,320 |  |  | $ | 21,059 |  |  | $ | — |  |  | $ | 880,270 |
Special mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard |  | — |  |  | 319 |  |  | — |  |  | — |  |  | — |  |  | 4,996 |  |  | — |  |  | — |  |  | 5,315 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Subtotal |  | $ | 97,114 |  |  | $ | 208,179 |  |  | $ | 154,872 |  |  | $ | 97,137 |  |  | $ | 138,908 |  |  | $ | 168,316 |  |  | $ | 21,059 |  |  | $ | — |  |  | $ | 885,585 |
Current period charge-offs |  | $ | — |  |  | $ | 457 |  |  | $ | 121 |  |  | $ | — |  |  | $ | 91 |  |  | $ | 17 |  |  | $ | — |  |  | $ | — |  |  | $ | 686 |
SBA— real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 31,920 |  |  | $ | 44,504 |  |  | $ | 26,188 |  |  | $ | 22,732 |  |  | $ | 28,244 |  |  | $ | 64,442 |  |  | $ | — |  |  | $ | — |  |  | $ | 218,030 |
Special mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,428 |  |  | — |  |  | — |  |  | 1,428 |
Substandard |  | — |  |  | 1,787 |  |  | 1,079 |  |  | 1,136 |  |  | — |  |  | 1,235 |  |  | — |  |  | — |  |  | 5,237 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Subtotal |  | $ | 31,920 |  |  | $ | 46,291 |  |  | $ | 27,267 |  |  | $ | 23,868 |  |  | $ | 28,244 |  |  | $ | 67,105 |  |  | $ | — |  |  | $ | — |  |  | $ | 224,695 |
Current period charge-offs |  | $ | — |  |  | $ | — |  |  | $ | 46 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 46 |
SBA—non-real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 5,408 |  |  | $ | 2,584 |  |  | $ | 200 |  |  | $ | 1,556 |  |  | $ | 950 |  |  | $ | 3,423 |  |  | $ | — |  |  | $ | — |  |  | $ | 14,121 |
Special mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard |  | — |  |  | 591 |  |  | — |  |  | — |  |  | — |  |  | 187 |  |  | — |  |  | — |  |  | 778 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 98 |  |  | — |  |  | — |  |  | 98 |
Subtotal |  | $ | 5,408 |  |  | $ | 3,175 |  |  | $ | 200 |  |  | $ | 1,556 |  |  | $ | 950 |  |  | $ | 3,708 |  |  | $ | — |  |  | $ | — |  |  | $ | 14,997 |
Current period charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 35 |  |  | $ | — |  |  | $ | — |  |  | $ | 35 |
C&I |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 15,117 |  |  | $ | 17,939 |  |  | $ | 22,098 |  |  | $ | 4,695 |  |  | $ | 1,720 |  |  | $ | 1,734 |  |  | $ | 55,106 |  |  | $ | 2,561 |  |  | $ | 120,970 |
Special mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Subtotal |  | $ | 15,117 |  |  | $ | 17,939 |  |  | $ | 22,098 |  |  | $ | 4,695 |  |  | $ | 1,720 |  |  | $ | 1,734 |  |  | $ | 55,106 |  |  | $ | 2,561 |  |  | $ | 120,970 |
Current period charge-offs |  | $ | 17 |  |  | $ | — |  |  | $ | 80 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 97 |
Home mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 72,182 |  |  | $ | 304,346 |  |  | $ | 79,585 |  |  | $ | 18,634 |  |  | $ | 8,939 |  |  | $ | 31,848 |  |  | $ | — |  |  | $ | — |  |  | $ | 515,534 |
Special mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard |  | — |  |  | 2,241 |  |  | 249 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,490 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Subtotal |  | $ | 72,182 |  |  | $ | 306,587 |  |  | $ | 79,834 |  |  | $ | 18,634 |  |  | $ | 8,939 |  |  | $ | 31,848 |  |  | $ | — |  |  | $ | — |  |  | $ | 518,024 |
Current period charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 4 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 77 |  |  | $ | — |  |  | $ | 1,493 |  |  | $ | — |  |  | $ | 1,574 |
Special mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Subtotal |  | $ | 4 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 77 |  |  | $ | — |  |  | $ | 1,493 |  |  | $ | — |  |  | $ | 1,574 |
Current period charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Total loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 221,745 |  |  | $ | 577,233 |  |  | $ | 282,943 |  |  | $ | 144,754 |  |  | $ | 178,838 |  |  | $ | 264,767 |  |  | $ | 77,658 |  |  | $ | 2,561 |  |  | $ | 1,750,499 |
Special mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,428 |  |  | — |  |  | — |  |  | 1,428 |
Substandard |  | — |  |  | 4,938 |  |  | 1,328 |  |  | 1,136 |  |  | — |  |  | 6,418 |  |  | — |  |  | — |  |  | 13,820 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 98 |  |  | — |  |  | — |  |  | 98 |
Subtotal |  | $ | 221,745 |  |  | $ | 582,171 |  |  | $ | 284,271 |  |  | $ | 145,890 |  |  | $ | 178,838 |  |  | $ | 272,711 |  |  | $ | 77,658 |  |  | $ | 2,561 |  |  | $ | 1,765,845 |
Current period charge-offs |  | $ | 17 |  |  | $ | 457 |  |  | $ | 247 |  |  | $ | — |  |  | $ | 91 |  |  | $ | 52 |  |  | $ | — |  |  | $ | — |  |  | $ | 864 |
(1)Excludes accrued interest receivables of $7.3 million as of December 31, 2023.

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