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Loans and Allowance for Credit Losses on Loans (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Schedule of Composition of Loan Portfolio

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.

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

Schedule of Activity in Allowance for Loan Losses by Portfolio Segment

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

Schedule of Recorded Investment in Nonaccrual Loans and Loans Past Due 90 or More Days and Still Accruing Interest by Portfolio Segment

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.

Schedule of Aging Analysis of Recorded Investment in Past Due 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.

Schedule of Financing Receivable, Modified

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

Schedule of Credit Risk Ratings by Portfolio Segment

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

Tabular disclosure of allowance for credit loss on financing receivable.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 310
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481962/310-10-50-11B

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479319/326-20-50-13

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X

- Definition

Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 310
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 29
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481962/310-10-50-29

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479319/326-20-50-5

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X

- Definition

Tabular disclosure of aging analysis for financing receivable.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 310
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481962/310-10-50-7A

Reference 2: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 310
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481962/310-10-50-7

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
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