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Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Schedule of Allowance for Loans Losses and Recorded Investment in Loans by Loan Segment

The following schedule presents the activity in the allowance for loan losses by loan segment for the three and nine months ended September 30, 2021 and 2020:

			Three Months Ended September 30,												Nine Months Ended September 30,
			2021						2020						2021						2020
Balance, beginning of period			$	20,797					$	12,880					$	21,162					$	10,742
Charge-offs:
Real estate - commercial			(173)						(7)						(173)						(7)
Commercial and industrial			(1,500)						(956)						(4,090)						(3,785)
Consumer and other			(20)						(17)						(48)						(79)
Total charge-offs			(1,693)						(980)						(4,311)						(3,871)
Recoveries:
Real estate - commercial			73						—						73						—
Commercial and industrial			439						12						688						131
Consumer and other			—						1						4						11
Total recoveries			512						13						765						142
Net (charge-offs) recoveries			(1,181)						(967)						(3,546)						(3,729)
Provision for loan losses			(3,000)						7,000						(1,000)						11,900
Balance, end of period			$	16,616					$	18,913					$	16,616					$	18,913
Net (charge-offs) recoveries to total average loans held for investment			(0.63)		%				(0.35)		%				(0.44)		%				(0.62)		%

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by loan segment and based on impairment method at September 30, 2021. The government guaranteed loan balances are included in the collectively evaluated for impairment balances.

			Real Estate- Residential						Real Estate- Commercial						Real Estate - Construction and Land						Commercial and Industrial						Commercial and Industrial - PPP						Consumer and Other						Unallocated						Total
Allowance for loan losses:
Individually evaluated for impairment			$	—					$	92					$	—					$	790					$	—					$	—					$	—					$	882
Collectively evaluated for impairment			2,556						3,090						339						9,381						—						312						56						15,734
Total			$	2,556					$	3,182					$	339					$	10,171					$	—					$	312					$	56					$	16,616
Loans:
Individually evaluated for impairment			$	—					$	2,925					$	—					$	790					$	—					$	—					$	—					$	3,715
Collectively evaluated for impairment			79,889						148,197						17,848						231,626						156,783						4,910						—						639,253
Total			$	79,889					$	151,122					$	17,848					$	232,416					$	156,783					$	4,910					$	—					$	642,968

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by loan segment and based on impairment method at December 31, 2020. The government guaranteed loan balances are included in the collectively evaluated for impairment balances.

			Real Estate- Residential						Real Estate- Commercial						Real Estate - Construction and Land						Commercial and Industrial						Commercial and Industrial - PPP						Consumer and Other						Unallocated						Total
Allowance for loan losses:
Individually evaluated for impairment			$	—					$	162					$	—					$	948					$	—					$	—					$	—					$	1,110
Collectively evaluated for impairment			2,088						2,737						310						14,470						—						252						195						20,052
Total			$	2,088					$	2,899					$	310					$	15,418					$	—					$	252					$	195					$	21,162
Loans:
Individually evaluated for impairment			$	—					$	2,348					$	—					$	948					$	—					$	—					$	—					$	3,296
Collectively evaluated for impairment			64,724						112,536						15,113						192,979						838,847						2,896						—						1,227,095
Total			$	64,724					$	114,884					$	15,113					$	193,927					$	838,847					$	2,896					$	—					$	1,230,391

Summary of Information Related to Impaired Loans by Loan Segment

The following table presents information related to impaired loans by loan segment at and for the nine months ended September 30, 2021:

			Unpaid Principal Balance						Recorded Investment						Allowance for Loan Losses Allocated						Average Recorded Investment						Interest Income Recognized						Cash Basis Interest Recognized
With no related allowance recorded:
Real estate - residential			$	—					$	—					$	—					$	—					$	—					$	—
Real estate - commercial			2,786						2,786						—						2,216						6						6
Real estate - construction and land			—						—						—						—						—						—
Commercial and industrial			—						—						—						—						—						—
Consumer and other			—						—						—						—						—						—
Subtotal			2,786						2,786						—						2,216						6						6
With an allowance recorded:
Real estate - residential			—						—						—						—						—						—
Real estate - commercial			139						139						92						435						—						—
Real estate - construction and land			—						—						—						—						—						—
Commercial and industrial			790						790						790						864						—						—
Consumer and other			—						—						—						—						—						—
Subtotal			929						929						882						1,299						—						—
Total			$	3,715					$	3,715					$	882					$	3,515					$	6					$	6

The following table presents information related to impaired loans by loan segment at and for the nine months ended September 30, 2020:

			Unpaid Principal Balance						Recorded Investment						Allowance for Loan Losses Allocated						Average Recorded Investment						Interest Income Recognized						Cash Basis Interest Recognized
With no related allowance recorded:
Real estate - residential			$	—					$	—					$	—					$	15					$	—					$	—
Real estate - commercial			605						605						—						612						24						28
Real estate - construction and land			—						—						—						—						—						—
Commercial and industrial			65						65						—						102						—						—
Consumer and other			—						—						—						—						—						—
Subtotal			670						670						—						729						24						28
With an allowance recorded:
Real estate - residential			—						—						—						—						—						—
Real estate - commercial			2,170						2,170						682						1,452						—						—
Real estate - construction and land			—						—						—						—						—						—
Commercial and industrial			1,447						1,447						1,382						2,190						—						—
Consumer and other			—						—						—						—						—						—
Subtotal			3,617						3,617						2,064						3,642						—						—
Total			$	4,287					$	4,287					$	2,064					$	4,371					$	24					$	28

Schedule of Recorded Investment in Nonaccrual and Loans Past Due over 89 Days Still on Accrual by Loan Segment

The following tables present the recorded investment in nonaccrual and loans past due over 89 days still on accrual by loan segment at September 30, 2021 and December 31, 2020. In the following table, the recorded investment does not include the government guaranteed balance.

			Nonaccrual												Loans Past Due Over 89 Days Still Accruing
			September 30, 2021						December 31, 2020						September 30, 2021						December 31, 2020
Real estate - residential			$	—					$	—					$	127					$	573
Real estate - commercial			2,839						1,806						—						—
Commercial and industrial			790						948						—						—
Total			$	3,629					$	2,754					$	127					$	573

Schedule of Aging of Recorded Investment in Past Due Loans

The following table presents the aging of the recorded investment in past due loans at September 30, 2021 by loan segment:

			30-89 Days Past Due						Greater Than 89 Days Past Due						Total Past Due						Loans Not Past Due (1)						Total Loans
Real estate - residential			$	439					$	127					$	566					$	79,323					$	79,889
Real estate - commercial			—						1,813						1,813						149,309						151,122
Real estate - construction and land			—						—						—						17,848						17,848
Commercial and industrial			1,999						342						2,341						230,075						232,416
Commercial and industrial - PPP			—						—						—						156,783						156,783
Consumer and other			2						—						2						4,908						4,910
Total			$	2,440					$	2,282					$	4,722					$	638,246					$	642,968
(1) There was $24,186 of government guaranteed loan balances 30-89 days past due and $1,285 of government guaranteed loan balances greater than 89 days past due reported as not past due.

The increase in the 30-89 days past due commercial and industrial - PPP loans was primarily due to delinquencies from borrowers with only a PPP loan and no other First Home Bank product. These borrowers were non-responsive to requests for forgiveness applications and payments, and applications were subsequently submitted to the SBA for their 100% guarantee purchase from the Bank.

The following table presents the aging of the recorded investment in past due loans at December 31, 2020 by loan segment:

			30-89 Days Past Due						Greater Than 89 Days Past Due						Total Past Due						Loans Not Past Due (1)						Total Loans
Real estate - residential			$	654					$	573					$	1,227					$	63,497					$	64,724
Real estate - commercial			954						1,743						2,697						112,187						114,884
Real estate - construction and land			—						—						—						15,113						15,113
Commercial and industrial			1,613						—						1,613						192,314						193,927
Commercial and industrial - PPP			—						—						—						838,847						838,847
Consumer and other			4						—						4						2,892						2,896
Total			$	3,225					$	2,316					$	5,541					$	1,224,850					$	1,230,391
(1) There was $252 of government guaranteed loan balances 30-89 days past due and $5,023 of government guaranteed loan balances greater than 89 days past due reported as not past due.

Summary of Credit Exposure for the Loan Portfolio Disaggregated by Loan Segment

The table below sets forth credit exposure for the loan portfolio disaggregated by loan segment based on internally assigned risk ratings at September 30, 2021:

			Pass						Special Mention						Substandard						Doubtful						Total Loans
Real estate - residential			$	79,889					$	—					$	—					$	—					$	79,889
Real estate - commercial			148,110						226						2,786						—						151,122
Real estate - construction and land			17,848						—						—						—						17,848
Commercial and industrial			227,653						2,069						2,694						—						232,416
Commercial and industrial - PPP			156,783						—						—						—						156,783
Consumer and other			4,910						—						—						—						4,910
Loans held for investment, at amortized cost			$	635,193					$	2,295					$	5,480					$	—					$	642,968

The table below sets forth credit exposure for the loan portfolio disaggregated by loan segment based on internally assigned risk ratings at December 31, 2020:

			Pass						Special Mention						Substandard						Doubtful						Total Loans
Real estate - residential			$	64,593					$	—					$	131					$	—					$	64,724
Real estate - commercial			112,260						431						2,193						—						114,884
Real estate - construction and land			15,113						—						—						—						15,113
Commercial and industrial			186,781						5,177						1,896						73						193,927
Commercial and industrial - PPP			838,847						—						—						—						838,847
Consumer and other			2,896						—						—						—						2,896
Loans held for investment, at amortized cost			$	1,220,490					$	5,608					$	4,220					$	73					$	1,230,391

Schedule of Loans Classified as Troubled Debt Restructuring and Loan Modifications Related to Covid-19

The following table presents loans classified as TDR at September 30, 2021 and December 31, 2020:

			September 30, 2021												December 31, 2020
			Accruing						Nonaccruing						Accruing						Nonaccruing
Real estate - commercial			$	86					$	1,116					$	542					$	666

Loan modifications related to COVID-19 at September 30, 2021 and December 31, 2020 are presented in the table below:

			September 30, 2021												December 31, 2020
			Number of Loans						Outstanding Recorded Investment						Number of Loans						Outstanding Recorded Investment
Real estate - residential			1						$	258					11						$	7,106
Real estate - commercial			1						514						4						1,849
Real estate - construction and land			—						—						2						1,424
Commercial and industrial			40						3,174						220						9,624
Total loan modifications related to COVID-19			42						$	3,946					237						$	20,003

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