v3.25.2
Loans
 6 Months Ended
Jun. 30, 2025
Loans and Leases Receivable Disclosure [Abstract]  
Loans Loans
Loans held-for-investment outstanding by general ledger classification as of June 30, 2025 and December 31, 2024, consisted of the following:
June 30,December 31,
20252024
($ in thousands)  
SBA(1)
$246,903 $255,056 
Commercial leases88,957 70,153 
Commercial, non-real estate5,510 3,691 
Residential real estate54,132 51,574 
Strategic Program loans:
 
 
Strategic Program loans - with credit enhancement
11,730 891 
Strategic Program loans - without credit enhancement
18,969 19,231 
Commercial real estate:
     Owner occupied77,871 41,046 
     Non-owner occupied1,417 1,379 
Consumer24,555 22,212 
Total loans held-for-investment, gross$530,044 $465,233 
Deferred loan fees, net(7,294)(4,245)
Allowance for credit losses(16,247)(13,176)
Loans held-for-investment, net$506,503 $447,812 
(1) Included in the SBA loans held-for-investment above are $144.3 million and $158.7 million of loans guaranteed by the SBA as of June 30, 2025 and December 31, 2024, respectively.
The Bank sells participation interests in some loans it originates and may acquire a participation interest in loans originated by others. All reported amounts reflect only the Bank’s ownership interest in the loans.
Strategic Program Loans – The Company originates loans with various third-party loan origination platforms that use technology and other innovative systems to streamline the origination of unsecured and secured consumer and business loans to a wide array of borrowers within certain approved credit profiles. Loans issued by the Company through these programs follow and are limited to specific predetermined underwriting criteria. The Company earns monthly minimum program fees from these third parties. Based on the volume of loans originated by the Company related to each Strategic Program, an additional fee equal to a percentage of the loans generated under the Strategic Program may be collected. The program fee is included within non-interest income on the Consolidated Statements of Income.
The Company generally retains the loans and/or receivables for a number of business days after origination before selling the loans and/or receivables to the Strategic Program provider or another investor. Interest income is earned by the Company while holding the loans. These loans are classified as held-for-sale on the balance sheet and measured at the lower of cost or market. The Company may also hold loans or a portion of the loans or receivables and sell the remainder directly to the Strategic Program provider or other investors. The loans or portion of the loans the Company holds are classified as held-for-investment.
The Company is generally the servicer of the loans it originates through Strategic Programs. The Company earns a servicing fee equal to a percentage of the outstanding balance of the loans generated under Strategic Programs for servicing such loans. In turn, the Strategic Program service providers, subject to the Company’s approval and oversight, typically serve as sub-servicer and perform primary servicing duties including loan collections, modifications, charging-off, reporting and monitoring, for which the Company incurs a cost.
Each Strategic Program provider establishes a “reserve” deposit account with the Company to reasonably ensure the strategic programs will have sufficient funds available to purchase the loans. The agreements generally require that the reserve account deposit balance does not fall below an agreed upon dollar or percentage threshold related to the total loans currently outstanding as held-for-sale by the Company for the specific Strategic Program. If necessary, the Company has
the right to withdraw amounts from the reserve account to fulfill loan purchaser obligations created under the program agreements. Total cash held in reserve by Strategic Program providers at the Company at June 30, 2025 and December 31, 2024, was $52.9 million and $54.0 million, respectively.
Strategic Program loans retained and held-for-sale as of June 30, 2025 and December 31, 2024, are summarized as follows:
June 30, 2025December 31, 2024
($ in thousands)  
Retained Strategic Program loans(1)
$30,699 $20,122 
Strategic Program loans held-for-sale147,282 91,588 
Total Strategic Program loans$177,981 $111,710 
(1) Includes $11.7 million and $0.9 million of credit enhanced loans at June 30, 2025 and December 31, 2024, respectively.
Allowance for Credit Losses: In determining an appropriate amount for the allowance, the Bank segmented and aggregated the loan portfolio based on the FDIC Consolidated Reports of Condition and Income (“Call Report”) codes. These classifications, which in general are based upon the nature of the collateral and type of borrower, are different than the classifications adopted for other financial reporting purposes, which are based upon the proposed use of the loan proceeds. The following pool segments were identified as of June 30, 2025 and December 31, 2024 for the purposes of estimating the ACL:
June 30, 2025December 31, 2024
($ in thousands)
Construction and land development $46,900 $42,331 
Residential real estate59,937 61,316 
Residential real estate multifamily1,792 1,692 
Commercial real estate:
Owner occupied224,016 190,286 
Non-owner occupied12,093 12,849 
Commercial and industrial39,504 44,329 
Consumer 24,498 22,155 
Lease financing receivables90,605 70,153 
Retained Strategic Program loans:
 
 
Strategic Program loans - with credit enhancement11,730 891 
Strategic Program loans - without credit enhancement18,969 19,231 
Total loans held-for-investment, gross$530,044 $465,233 
Activity in the ACL by common characteristic loan pools was as follows for the periods indicated:
Three Months Ended June 30, 2025
($ in thousands)Beginning BalanceProvision for (Reversal of) Credit LossesCharge-OffsRecoveriesEnding Balance
Construction and land development $988 $(7)$— $— $981 
Residential real estate598 244 (210)3 635 
Residential real estate multifamily38 2 — — 40 
Commercial real estate:
Owner occupied3,632 (395)(309)19 2,947 
Non-owner occupied126 (22)— — 104 
Commercial and industrial431 18 — — 449 
Consumer 676 245 (210)7 718 
Lease financing receivables1,587 224 (133)7 1,685 
Retained Strategic Program loans:
Strategic Program loans - with credit enhancement194 2,275 — — 2,469 
Strategic Program loans - without credit enhancement5,965 2,212 (2,279)321 6,219 
Total allowance for credit losses on financing receivables
$14,235 $4,796 $(3,141)$357 $16,247 
Unfunded lending commitments493 (70)— — 423 
Total allowance for credit losses$14,728 $4,726 $(3,141)$357 $16,670 
Six Months Ended June 30, 2025
($ in thousands)Beginning BalanceProvision for (Reversal of) Credit LossesCharge-OffsRecoveriesEnding Balance
Construction and land development$374 $607 $— $— $981 
Residential real estate788 58 (217)6 635 
Residential real estate multifamily38 2 — — 40 
Commercial real estate: — 
    Owner occupied2,834 448 (370)35 2,947 
    Non-owner occupied113 (9)— — 104 
Commercial and industrial700 (182)(83)14 449 
Consumer638 298 (228)10 718 
Lease financing receivables1,387 493 (169)(26)1,685 
Retained Strategic Program loans:
Strategic Program loans - with credit enhancement109 2,360 — — 2,469 
Strategic Program loans - without credit enhancement6,195 4,028 (4,663)659 6,219 
Total allowance for credit losses
$13,176 $8,103 $(5,730)$698 $16,247 
Unfunded lending commitments464 (41)— — 423 
Total allowance for credit losses$13,640 $8,062 $(5,730)$698 $16,670 
Three Months Ended June 30, 2024
($ in thousands)Beginning BalanceProvision for Credit LossesCharge-OffsRecoveriesEnding Balance
Construction and land development$333 $(3)$— $— $330 
Residential real estate999 27 — 3 1,029 
Residential real estate multifamily8 3 — — 11 
Commercial real estate:
Owner occupied3,910 184 — — 4,094 
Non-owner occupied318 62 — — 380 
Commercial and industrial482 110 (184)15 423 
Consumer265 13 (18)1 261 
Lease financing receivables556 156 (69)7 650 
Retained Strategic Program loans5,761 1,841 (1,962)309 5,949 
Total allowance for credit losses on financing receivables
$12,632 $2,393 $(2,233)$335 $13,127 
Unfunded lending commitments148 (8)— — 140 
Total allowance for credit losses$12,780 $2,385 $(2,233)$335 $13,267 
Six Months Ended June 30, 2024
($ in thousands)Beginning BalanceProvision for Credit LossesCharge-OffsRecoveriesEnding Balance
Construction and land development$316 $14 $— $— $330 
Residential real estate956 81 (64)56 1,029 
Residential real estate multifamily6 5 — — 11 
Commercial real estate:— 
Owner occupied3,336 1,280 (525)3 4,094 
Non-owner occupied282 98 — — 380 
Commercial and industrial361 285 (238)15 423 
Consumer211 108 (59)1 261 
Lease financing receivables355 468 (180)7 650 
Retained Strategic Program loans7,065 3,199 (4,908)593 5,949 
Total allowance for credit losses$12,888 $5,538 $(5,974)$675 $13,127 
Unfunded lending commitments139 1 — — 140 
Total allowance for credit losses$13,027 $5,539 $(5,974)$675 $13,267 
Nonaccrual and past due loans are summarized below as of June 30, 2025 and December 31, 2024:
June 30, 2025
Loans Past Due and Still Accruing
($ in thousands)30-89
Days
Past
Due		 90 Days
and Greater		 Total 
Nonaccrual Loans with no ACL(1)
 Nonaccrual Loans with ACLCurrent Loans Total Loans
Construction and land development$— $— $— $— $— $46,900 $46,900 
Residential real estate— — — 9,770 12 50,155 59,937 
Residential real estate multifamily— — — — — 1,792 1,792 
Commercial real estate:
Owner occupied3,016 — 3,016 22,394 2,276 196,330 224,016 
Non-owner occupied— — — 2,786 — 9,307 12,093 
Commercial and industrial— — — 1,567 — 37,937 39,504 
Consumer73 — 73 65 19 24,341 24,498 
Commercial leases62 — 62 137 204 90,202 90,605 
Retained Strategic Program loans1,578 16 1,594 — — 29,105 30,699 
Total$4,729 $16 $4,745 

$36,719 $2,511 $486,069 $530,044 
(1) Included in the nonaccrual loan balances are $20.9 million of SBA 7(a) loan balances guaranteed by the SBA.
December 31, 2024
Loans Past Due and Still Accruing
($ in thousands)30-89
Days
Past
Due		90 Days
and Greater		Total
Nonaccrual Loans with no ACL(1)
Nonaccrual Loans with ACLCurrent LoansTotal Loans
Construction and land development$— $— $— $— $— $42,331 $42,331 
Residential real estate— — — 7,141 101 54,074 61,316 
Residential real estate multifamily— — — — — 1,692 1,692 
Commercial real estate:
Owner occupied2,070 — 2,070 17,435 6,102 164,679 190,286 
Non-owner occupied— — — 2,796 — 10,053 12,849 
Commercial and industrial— — — 1,788 — 42,541 44,329 
Consumer286 13 299 — — 21,856 22,155 
Commercial leases279 — 279 158 202 69,514 70,153 
Retained Strategic Program loans1,553 62 1,615 — — 18,507 20,122 
Total$4,188 $75 $4,263 

$29,318 $6,405 $425,247 $465,233 
(1) Included in the nonaccrual loan balances are $18.9 million of SBA 7(a) loan balances guaranteed by the SBA.
There was no interest income recognized for the three and six months ended June 30, 2025 and 2024, while loans were classified as nonaccrual. The amount of accrued interest that was reversed against interest income on nonaccrual loans was approximately $0.8 million and $30.1 thousand for the three months ended June 30, 2025 and 2024, respectively, and $1.0 million and $0.1 million for the six months ended June 30, 2025 and 2024, respectively.
The allowance for credit losses represents management’s estimate of lifetime credit losses inherent in loans as of the balance sheet date. The allowance for credit losses is estimated by management using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The Bank measures expected credit losses for loans on a pooled basis when similar risk characteristics exist. Generally, collectively assessed loans are grouped by Call Report code and then risk grade grouping.
In addition to past due and nonaccrual status criteria, the Company also evaluates loans using a loan grading system. Internal loan grades are based on current financial information, historical payment experience, and credit documentation, among other factors. Performance-based grades are summarized below:
Pass – A Pass asset is higher quality and does not fit any of the other categories described below. The likelihood of loss is believed to be remote.
Watch – A Watch asset may be a larger loan or one that places a heavier reliance on collateral due to the relative financial strength of the borrower. The assets may be maintenance intensive requiring closer monitoring. The obligor is believed to have an adequate primary source of repayment.
Special Mention – A Special Mention asset has potential weaknesses that may be temporary or, if left uncorrected, may result in a loss. While concerns exist, the Company believes that it is currently protected against a default and loss is considered unlikely and not imminent.
Substandard – A Substandard asset is believed to be inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified have identified weaknesses and are characterized by the possibility that the Company may sustain some loss if deficiencies are not corrected.
Doubtful – A doubtful asset has an existing weakness or weaknesses that make collection or liquidation in full, on the basis of currently existing facts and conditions, highly questionable and improbable.
Loss – A loss asset has an existing weakness or weaknesses that render the loan uncollectible and of such little value that continuing to carry as an asset on the Company’s books is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical nor desirable to defer writing off this basically worthless asset, even though partial recovery may be effected in the future.
Not Rated – For Strategic Program loans, the Company does not evaluate and risk rate the loans in the same manner as other loans in the Company’s portfolio. The Not Rated loans are typically homogenous, smaller dollar balances approved using abridged underwriting methods that allow the Company to streamline the loan approval process and increase efficiency. Credit quality for Strategic Program loans is highly correlated with delinquency levels.
The following table presents the amortized cost of the Company's loan and lease portfolio by collateral type, risk rating and origination year as of June 30, 2025, in addition to the gross writeoff by collateral type for the six months ended June 30, 2025. The loans are grouped based on how they are assessed under CECL.
Loans and Leases Amortized Cost Basis by Origination Year
June 30, 202520252024202320222021PriorRevolving LoansTotal
($ in thousands)  
Construction and land development
   Pass$15,421 $19,886 $4,563 $4,916 $2,114 $— $— $46,900 
   Watch— — — — — — — — 
   Special Mention— — — — — — — — 
   Substandard— — — — — — — — 
   Total 15,421 19,886 4,563 4,916 2,114 — — 46,900 
Current period gross writeoff— — — — — — — — 
Residential real estate
Pass676 1,622 1,804 947 504 1,647 — 7,200 
Watch5,927 10,101 16,801 3,958 961 1,216 — 38,964 
Special Mention3,810 — — — — 37 — 3,847 
Substandard— — 2,655 7,027 44 200 — 9,926 
Total10,413 11,723 21,260 11,932 1,509 3,100 — 59,937 
Current period gross writeoff— — (210)— (7)— — (217)
Residential real estate multifamily
   Pass56 1,035 344 254 78 — — 1,767 
   Watch— — — — — 25 — 25 
   Special Mention— — — — — — — — 
   Substandard— — — — — — — — 
   Total56 1,035 344 254 78 25 — 1,792 
Current period gross writeoff— — — — — — — — 
Commercial real estate - owner occupied
   Pass44,956 23,286 5,328 3,532 1,775 7,029 — 85,906 
   Watch25,681 19,935 35,613 16,353 4,334 3,715 — 105,631 
   Special Mention— — 2,483 4,354 — 972 — 7,809 
   Substandard— 161 11,744 9,231 740 2,794 — 24,670 
   Total70,637 43,382 55,168 33,470 6,849 14,510 — 224,016 
Current period gross writeoff— — (99)(194)(56)(21)— (370)
Commercial real estate - non-owner occupied
Pass39 — — 1,233 — 319 — 1,591 
Watch— 1,176 3,678 1,764 975 123 — 7,716 
Special Mention— — — — — — — — 
Substandard— — — 2,786 — — — 2,786 
Total39 1,176 3,678 5,783 975 442 — 12,093 
Current period gross writeoff— — — — — — — — 
Commercial and industrial
   Pass617 2,565 986 857 259 337 — 5,621 
   Watch4,956 15,324 8,100 2,404 361 467 — 31,612 
   Special Mention— — 312 — — 28 — 340 
   Substandard— — 1,188 379 — 364 — 1,931 
Total5,573 17,889 10,586 3,640 620 1,196 — 39,504 
Current period gross writeoff— — — (54)— (29)— (83)
Consumer
   Pass7,908 11,931 3,233 798 204 227 — 24,301 
   Watch— 46 8 6 — — — 60 
   Special Mention— — — — — — — — 
   Substandard71 60 4 — 2 — — 137 
Total7,979 12,037 3,245 804 206 227 — 24,498 
Current period gross writeoff— (110)(96)(19)(1)(2)— (228)
Lease financing receivables
   Pass31,119 38,568 17,859 3,059 — — — 90,605 
   Watch— — — — — — — — 
   Special Mention— — — — — — — — 
   Substandard— — — — — — — — 
Total31,119 38,568 17,859 3,059 — — — 90,605 
Current period gross writeoff— — (169)— — — — (169)
Retained Strategic Program loans
   Pass— — — — — — — — 
   Watch— — — — — — — — 
   Special Mention— — — — — — — — 
   Substandard— — — — — — — — 
   Not Rated22,881 6,468 498 615 237 — — 30,699 
Total22,881 6,468 498 615 237 — — 30,699 
Current period gross writeoff(523)(3,596)(314)(138)(92)— — (4,663)
Total portfolio loans receivable, gross$164,118 $152,164 $117,201 $64,473 $12,588 $19,500 $— $530,044 
Total current period gross writeoff$(523)$(3,706)$(888)$(405)$(156)$(52)$— $(5,730)
The following table presents the amortized cost of the Company's loan and lease portfolio by collateral type, risk rating and origination year as of December 31, 2024, in addition to the gross writeoff by collateral type for the year ended December 31, 2024. The loans are grouped based on how they are assessed under CECL.
Loans and Leases Amortized Cost Basis by Origination Year
December 31, 20242024202320222021PriorRevolving LoansTotal
($ in thousands)  
Construction and land development
   Pass$18,008 $9,080 $12,687 $2,556 $— $— $42,331 
   Watch— — — — — — — 
   Special Mention— — — — — — — 
   Substandard— — — — — — — 
   Total 18,008 9,080 12,687 2,556 — — 42,331 
Current period gross writeoff— — — — — — — 
Residential real estate
Pass4,025 1,172 575 1,332 1,655 — 8,759 
Watch14,268 18,766 4,134 1,103 1,333 — 39,604 
Special Mention— 3,719 1,758 — 80 — 5,557 
Substandard— — 7,129 50 217 — 7,396 
Total18,293 23,657 13,596 2,485 3,285 — 61,316 
Current period gross writeoff— — — (252)(45)— (297)
Residential real estate multifamily
   Pass1,039 293 256 78 — — 1,666 
   Watch— — — — 26 — 26 
   Special Mention— — — — — — — 
   Substandard— — — — — — — 
   Total1,039 293 256 78 26 — 1,692 
Current period gross writeoff— — — — — — — 
Commercial real estate - owner occupied
   Pass26,160 3,897 3,468 1,180 9,112 — 43,817 
   Watch25,137 51,350 28,462 5,904 3,342 — 114,195 
   Special Mention— 4,553 1,736 — 2,207 — 8,496 
   Substandard— 16,150 5,142 1,414 1,072 — 23,778 
   Total51,297 75,950 38,808 8,498 15,733 — 190,286 
Current period gross writeoff— (364)(369)(109)(197)— (1,039)
Commercial real estate - non-owner occupied
Pass36 — 1,254 — 343 — 1,633 
Watch1,215 4,111 1,841 1,117 136 — 8,420 
Special Mention— — — — — — — 
Substandard— — 2,796 — — — 2,796 
Total1,251 4,111 5,891 1,117 479 — 12,849 
Current period gross writeoff— — (221)— — — (221)
Commercial and industrial
   Pass3,588 336 529 322 463 — 5,238 
   Watch23,559 9,134 2,945 442 606 — 36,686 
   Special Mention— — 217 — 32 — 249 
   Substandard— 1,438 351 — 367 — 2,156 
Total27,147 10,908 4,042 764 1,468 — 44,329 
Current period gross writeoff— (393)(227)(178)(91)— (889)
Consumer
   Pass15,951 4,294 1,257 319 286 — 22,107 
   Watch43 5 — — — — 48 
   Special Mention— — — — — — — 
   Substandard— — — — — — — 
Total15,994 4,299 1,257 319 286 — 22,155 
Current period gross writeoff— (65)(31)(19)(19)— (134)
Lease financing receivables
   Pass43,279 22,456 4,338 — 80 — 70,153 
   Watch— — — — — — — 
   Special Mention— — — — — — — 
   Substandard— — — — — — — 
Total43,279 22,456 4,338 — 80 — 70,153 
Current period gross writeoff— (293)— — — — (293)
Retained Strategic Program loans
   Pass— — — — — — — 
   Watch— — — — — — — 
   Special Mention— — — — — — — 
   Substandard— — — — — — — 
   Not Rated17,084 1,540 1,109 389 — — 20,122 
Total17,084 1,540 1,109 389 — — 20,122 
Current period gross writeoff(3,801)(4,683)(927)(385)— — (9,796)
Total portfolio loans receivable, gross$193,392 $152,294 $81,984 $16,206 $21,357 $— $465,233 
Total current period gross writeoff$(3,801)$(5,798)$(1,775)$(943)$(352)$— $(12,669)
Modified Loans to Troubled Borrowers
Modified loans to troubled borrowers arise from a modification made to a loan in order to alleviate temporary difficulties in the borrower’s financial condition or constraints on the borrower’s ability to repay the loan, and to minimize potential losses to the Company. GAAP requires that certain types of modifications be reported, which consist of the following: principal forgiveness, interest rate reduction, other-than-insignificant payment delay, term extension, or any combination of the foregoing.
During the three and six months ended June 30, 2025 there were no new material loan modifications. During the six months ended June 30, 2025, there was a payment default of $0.2 million on a commercial real estate owner occupied loan to a borrower whose loan was modified due to financial difficulties within the previous twelve months and the loan was placed on nonaccrual status. The remaining modified loans were current as of June 30, 2025 and December 31, 2024.
There were no payment defaults during the three and six months ended June 30, 2024 of modified loans that were modified during the previous twelve months. The following table presents the outstanding balance of modified loans as of June 30,
2024, the percentage of the loans modified to the total class of loans, and the financial effect of modified loans to troubled borrowers that were experiencing financial difficulty during the six months ended June 30, 2024:
($ in thousands)
Principal Deferment (Months)
Outstanding Balance at June 30, 2024% of Total Loan Type
Commercial real estate:
Owner occupied11 months$243 0.13 %
Non-owner occupied11 months$173 0.94 %
Residential11 months$156 0.27 %
Total principal$572 
Modified Retained Strategic Program Loans
Retained Strategic Program loans of $30.7 million and $20.1 million as of June 30, 2025 and December 31, 2024, respectively, consist primarily of personal loans to individuals. A significant amount of the retained Strategic Program loans are made to subprime borrowers. The subprime borrowers’ ability to repay the loans according to the original loan terms can be compromised by both short-term financial challenges, such as unexpected car repairs or physical injury, and longer-term financial challenges, such as a job loss or more serious injury or illness.
In certain circumstances, some of the Company’s strategic programs will modify the original loan terms to optimize the recovery of principal and interest. The loan modifications may include (i) a delay in payment and extension of the loan term, or (ii) accrued interest forgiveness and interest rate and payment reductions. As of June 30, 2025, the balance of outstanding modified loans to individuals in the retained portfolio was approximately $0.3 million. As of December 31, 2024, the balance of outstanding modified loans to individuals in the retained portfolio was approximately $4.4 million. The Company does not have any obligation to fund additional amounts to the borrowers. If after modification, some or all of the loan is determined to be uncollectible, the full balance determined to be uncollectible is charged off. The amount charged off is included in the Company’s vintage analysis used to estimate the Company’s allowance for credit losses.

Collateral-Dependent Loans
A collateral-dependent loan is a nonaccrual loan for which the Bank relies substantially on the operation or sale of the collateral for repayment. In evaluating the overall risk associated with a loan, the Company considers (1) character, overall financial condition and resources, and payment record of the borrower; (2) the prospects for support from any financially responsible guarantors; and (3) the nature and degree of protection provided by the cash flow and value of any underlying collateral. The loan may become collateral-dependent when foreclosure is probable or the borrower is experiencing financial difficulty and its sources of repayment become inadequate over time. At such time, the Company develops an expectation that repayment will be provided substantially through the operation or sale of the collateral.
The following tables present the amortized cost basis of collateral-dependent loans by class of loans as of the periods indicated:

As of June 30, 2025Collateral Type
($ in thousands)Allowance for Credit LossesReal EstatePersonal PropertyTotal
Construction and land development$— $— $— $— 
Residential real estate1 9,782 — 9,782 
Commercial real estate:
Owner occupied6 24,670 — 24,670 
Non-owner occupied— 2,786 — 2,786 
Commercial and industrial— — 1,567 1,567 
Consumer19 — 84 84 
Commercial leases92 — 341 341 
Total$118 $37,238 $1,992 $39,230 
The amount of collateral-dependent loans as of June 30, 2025 include $20.9 million of SBA 7(a) loan balances that are guaranteed by the SBA.
As of December 31, 2024Collateral Type
($ in thousands)Allowance for Credit LossesReal EstatePersonal PropertyTotal
Construction and land development$— $— $— $— 
Residential real estate10 7,242 — 7,242 
Commercial real estate:
Owner occupied9 23,537 — 23,537 
Non-owner occupied— 2,796 — 2,796 
Commercial and industrial— — 1,788 1,788 
Commercial leases36 — 360 360 
Total$55 $33,575 $2,148 $35,723 
The amount of collateral-dependent loans as of December 31, 2024 include $18.9 million of SBA 7(a) loan balances that are guaranteed by the SBA.