v3.25.2
Loans and Allowance for Credit Losses on Loans (Tables)
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Schedule of Composition of Loan Portfolio
The following table presents the composition of the loan portfolio as of June 30, 2025 and December 31, 2024:
($ in thousands)June 30, 2025December 31, 2024
Commercial real estate ("CRE")$1,021,431 $980,247 
SBA—real estate241,451 231,962 
SBA—non-real estate21,973 21,748 
C&I193,359 213,097 
Home mortgage593,256 509,524 
Consumer and other110 274 
Gross loans2,071,580 1,956,852 
Allowance for credit losses(26,286)(24,796)
Net loans (1)
$2,045,294 $1,932,056 
(1)Includes net deferred loan costs (fees) and net unamortized premiums (discounts) of $398 thousand as of June 30, 2025 and $(702) thousand as of December 31, 2024.
The following table represents the amortized cost basis of collateral-dependent loans by property type as of June 30, 2025 and December 31, 2024, for which repayment is expected to be obtained through the sale of the underlying collateral:
($ in thousands)Hotel / MotelRetailGas StationSingle-Family Residential
Total (1)(2)
As of June 30, 2025
CRE
$1,580 $222 $— $— $1,802 
SBA—real estate3,706 1,567 — — 5,273 
Home mortgage— — — 1,418 1,418 
Total$5,286 $1,789 $— $1,418 $8,493 
As of December 31, 2024
CRE
$1,580 $363 $— $— $1,943 
SBA—real estate3,702 2,006 — — 5,708 
Total$5,282 $2,369 $— $— $7,651 
(1)Excludes guaranteed portion of SBA loans totaling $12.5 million and $15.2 million as of June 30, 2025 and December 31, 2024, respectively.
(2)The allowance for credit losses allocated to these loans as of June 30, 2025 and December 31, 2024 was $904 thousand and $1.2 million, respectively.
Schedule of Activity in Allowance for Loan Losses by Portfolio Segment
The following table summarizes the activity in the allowance for credit losses on loans by portfolio segment for the three and six months ended June 30, 2025 and 2024:
($ in thousands)
CRE
SBA—
Real Estate
SBA —Non-
Real Estate
C&I
Home
Mortgage
Consumer and OtherTotal
Three Months Ended June 30, 2025
Beginning balance$9,010 $5,381 $512 $1,710 $8,755 $— $25,368 
Provision for (reversal of) credit losses9 931 (17)(372)704 — 1,255 
Charge-offs(129)(413)— — — — (542)
Recoveries80 — 4 121 — — 205 
Ending balance$8,970 $5,899 $499 $1,459 $9,459 $— $26,286 
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 $22,760 
($ in thousands)
CRE
SBA—
Real Estate
SBA —Non-
Real Estate
C&I
Home
Mortgage
Consumer and OtherTotal
Six Months Ended June 30, 2025
Beginning balance$9,290 $5,557 $418 $1,844 $7,684 $3 $24,796 
Provision for (reversal of) credit losses(271)755 72 (477)1,866 (3)1,942 
Charge-offs(129)(413)(10)(29)(91)— (672)
Recoveries80 — 19 121 — — 220 
Ending balance$8,970 $5,899 $499 $1,459 $9,459 $— $26,286 
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 losses11 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 $22,760 
Schedule of Recorded Investment in Nonaccrual Loans and Loans Past Due 90 or More Days and Still Accruing Interest by Portfolio Segment
The following table presents the amortized cost in nonaccrual loans and loans past due 90 or more days and still accruing interest as of June 30, 2025 and December 31, 2024:
($ in thousands)Nonaccrual Loans with a Related Allowance for Credit LossesNonaccrual Loans without a Related Allowance for Credit LossesTotal Nonaccrual Loans
90 or More
Days
Past Due &
Still Accruing
Total (1)
As of June 30, 2025
CRE
$— $1,802 $1,802 $— $1,802 
SBA—real estate2,444 2,932 5,376 — 5,376 
SBA—non-real estate320 — 320 — 320 
C&I— — — — — 
Home mortgage— 1,418 1,418 — 1,418 
Total$2,764 $6,152 $8,916 $— $8,916 
As of December 31, 2024
CRE
$363 $1,580 $1,943 $— $1,943 
SBA—real estate2,006 3,702 5,708 — 5,708 
SBA—non-real estate169 — 169 — 169 
Total$2,538 $5,282 $7,820 $— $7,820 
(1)    Excludes guaranteed portion of loans totaling $13.9 million and $16.3 million as of June 30, 2025 and December 31, 2024, respectively.
Schedule of Aging Analysis of Recorded Investment in Past Due Loans
The following table represents the aging analysis of gross loans as of June 30, 2025 and December 31, 2024:
Still Accruing
($ in thousands)
30-59
Days
Past Due
60-89
Days
Past Due
90 or More Days
Past Due
Nonaccrual Loans (1)
Current Accruing Loans
Total
As of June 30, 2025
CRE$— $— $— $1,802 $1,019,629 $1,021,431 
SBA—real estate4,275 1,882 — 5,376 229,918 241,451 
SBA—non-real estate234 — — 320 21,419 21,973 
C&I— — — — 193,359 193,359 
Home mortgage298 3,114 — 1,418 588,426 593,256 
Consumer and other— — — — 110 110 
Total$4,807 $4,996 $— $8,916 $2,052,861 $2,071,580 
As of December 31, 2024 (2)
CRE$— $— $— $1,943 $978,304 $980,247 
SBA—real estate237 74 — 5,708 225,943 231,962 
SBA—non-real estate133 137 — 169 21,309 21,748 
C&I15 — — — 213,082 213,097 
Home mortgage2,774 5,594 — — 501,156 509,524 
Consumer and other— — — — 274 274 
Total$3,159 $5,805 $— $7,820 $1,940,068 $1,956,852 
(1)Excludes guaranteed portion of loans totaling $13.9 million and $16.3 million as of June 30, 2025 and December 31, 2024, respectively.
(2)Revised to conform with the current presentation.
Schedule of Financing Receivable, Modified
The following table presents the amortized cost of loans as of June 30, 2025 that were modified for borrowers experiencing financial difficulty during the three and six months ended June 30, 2025 and 2024 by loan class and modification type:
Three Months Ended June 30, 2025Modification TypePercentage to Each Loan Segment
($ in thousands)Payment DelayInterest OnlyTotal
CRE$1,084 $— $1,084 0.11 %
SBA—real estate (1)
2,081 — 2,081 0.86 %
Total$3,165 $— $3,165 
Three Months Ended June 30, 2024Modification TypePercentage to Each Loan Segment
($ in thousands)Payment DelayTerm ExtensionTotal
SBA—real estate (1)
$390 $— $390 0.17 %
SBA—non-real estate$— $9 $9 0.05 %
C&I130 — 130 0.07 %
Total$520 $9 $529 
Six Months Ended June 30, 2025Modification TypePercentage to Each Loan Segment
($ in thousands)Payment DelayInterest OnlyTotal
CRE
$1,084 $3,155 $4,239 0.42 %
SBA—real estate (1)
2,730 — 2,730 1.13 %
Total$3,814 $3,155 $6,969 
Six Months Ended June 30, 2024Modification TypePercentage to Each Loan Segment
($ in thousands)Payment DelayTerm ExtensionTotal
SBA—real estate (1)
$1,130 $— $1,130 0.50 %
SBA—non-real estate$— $9 $9 0.05 %
C&I130 — 130 0.07 %
Total$1,260 $9 $1,269 
(1)Excludes guaranteed portion of SBA loans totaling $3.2 million and $5.2 million for the three and six months ended June 30, 2025, respectively. In comparison, no guaranteed portion of SBA loans was excluded for the three and six months ended June 30, 2024.
The following tables describe the financial effect of the loan modifications made to borrowers experiencing financial difficulty for the periods presented:
Financial Effect
Modification & Loan TypesDescription of Financial EffectThree Months Ended June 30, 2025Six Months Ended June 30, 2025
Payment Delay:
CREDeferment of payment by a weighted average of:0.3 years0.3 years
SBA—real estateDeferment of payment by a weighted average of:0.3 years0.3 years
Interest Only:
CREInterest only Payment by a weighted average of:N/A0.5 years
Financial Effect
Modification & Loan TypesDescription of Financial EffectThree Months Ended June 30, 2024Six Months Ended June 30, 2024
Payment Delay:
SBA—real estateDeferment of payment by a weighted average of:0.5 years0.5 years
C&IDeferment of payment by a weighted average of:0.5 years0.5 years
Term Extension:
SBA—non-real estateExtended term by a weighted average of:1.8 years1.8 years
The Company closely monitors the performance of modified loans to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that were modified in the twelve months ended June 30, 2025 and 2024:
Payment Performance as of June 30, 2025
($ in thousands)Current30 - 89 Days
Past Due		90+ Days
Past Due		Total
CRE
$1,733 $1,580 $— $3,313 
SBA—real estate (1)
5,236 — 1,960 7,196 
Total$6,969 $1,580 $1,960 $10,509 
Payment Performance as of June 30, 2024
($ in thousands)Current30 - 89 Days
Past Due		90+ Days
Past Due		Total
CRE$622 $— $— $622 
SBA—real estate (1)
1,390 1,054 740 3,184 
SBA—non-real estate130 — — 130 
C&I221 — — 221 
Total$2,363 $1,054 $740 $4,157 
(1)Excludes guaranteed portion of SBA loans totaling $7.4 million and $3.1 million as June 30, 2025 and 2024, respectively.
Schedule of Credit Risk Ratings by Portfolio Segment
The following table presents the loan portfolio's amortized cost and current year-to-date gross write-offs by loan type, risk rating and year of origination as of June 30, 2025 and December 31, 2024:
June 30, 2025
Term Loans by Origination YearRevolving LoansRevolving Loans Converted to Term LoansTotal
($ in thousands)20252024
2023
20222021Prior
CRE
Pass$143,565 $263,979 $93,795 $229,321 $170,858 $101,659 $9,119 $— $1,012,296 
Special mention— — — 574 2,212 — — — 2,786 
Substandard— — 1,580 4,546 — 223 — — 6,349 
Doubtful— — — — — — — — — 
Subtotal$143,565 $263,979 $95,375 $234,441 $173,070 $101,882 $9,119 $— $1,021,431 
Year-to-date charge-offs$— $— $— $— $— $129 $— $— $129 
SBA— real estate
Pass$27,545 $29,182 $24,926 $35,560 $15,268 $80,732 $— $— $213,213 
Special mention— — — 6,579 1,337 1,260 — — 9,176 
Substandard— — 1,186 9,965 289 7,622 — — 19,062 
Doubtful— — — — — — — — — 
Subtotal$27,545 $29,182 $26,112 $52,104 $16,894 $89,614 $— $— $241,451 
Year-to-date charge-offs$— $— $— $— $— $413 $— $— $413 
SBA—non-real estate
Pass$3,175 $8,638 $3,978 $1,657 $89 $2,958 $— $— $20,495 
Special mention— — — — — — — — — 
Substandard— — — 440 — 940 — — 1,380 
Doubtful— — — — — 98 — — 98 
Subtotal$3,175 $8,638 $3,978 $2,097 $89 $3,996 $— $— $21,973 
Year-to-date charge-offs$— $— $3 $— $— $7 $— $— $10 
C&I
Pass$2,797 $20,625 $10,712 $13,349 $13,856 $2,295 $127,582 $1,568 $192,784 
Special mention— — — — — — 434 — 434 
Substandard— — — — — — 141 — 141 
Doubtful— — — — — — — — — 
Subtotal$2,797 $20,625 $10,712 $13,349 $13,856 $2,295 $128,157 $1,568 $193,359 
Year-to-date charge-offs$— $— $29 $— $— $— $— $— $29 
Home mortgage
Pass$128,214 $37,489 $56,018 $257,609 $68,925 $43,583 $— $— $591,838 
Special mention— — — — — — — — — 
Substandard— — — 1,418 — — — — 1,418 
Doubtful— — — — — — — — — 
Subtotal$128,214 $37,489 $56,018 $259,027 $68,925 $43,583 $— $— $593,256 
Year-to-date charge-offs$— $— $— $77 $— $14 $— $— $91 
Consumer and other
Pass$25 $— $— $— $— $— $85 $— $110 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Subtotal$25 $— $— $— $— $— $85 $— $110 
Year-to-date charge-offs$— $— $— $— $— $— $— $— $— 
Total loans
Pass$305,321 $359,913 $189,429 $537,496 $268,996 $231,227 $136,786 $1,568 $2,030,736 
Special mention— — — 7,153 3,549 1,260 434 — 12,396 
Substandard— — 2,766 16,369 289 8,785 141 — 28,350 
Doubtful— — — — — 98 — — 98 
Subtotal$305,321 $359,913 $192,195 $561,018 $272,834 $241,370 $137,361 $1,568 $2,071,580 
Year-to-date charge-offs$— $— $32 $77 $— $563 $— $— $672 

December 31, 2024
Term Loans by Origination YearRevolving LoansRevolving Loans Converted to Term LoansTotal
($ in thousands)2024
2023
202220212020Prior
CRE
Pass$201,141 $85,056 $190,968 $137,425 $88,993 $250,291 $17,012 $— $970,886 
Special mention— — 579 2,246 — — — — 2,825 
Substandard— 1,580 319 — — 4,637 — — 6,536 
Doubtful— — — — — — — — — 
Subtotal$201,141 $86,636 $191,866 $139,671 $88,993 $254,928 $17,012 $— $980,247 
Year-to-date charge-offs$— $— $— $— $— $— $— $— $— 
SBA— real estate
Pass$31,441 $26,508 $41,375 $18,819 $16,166 $72,440 $— $— $206,749 
Special mention— — 2,345 — — 739 — — 3,084 
Substandard— 1,182 9,965 2,868 — 8,114 — — 22,129 
Doubtful— — — — — — — — — 
Subtotal$31,441 $27,690 $53,685 $21,687 $16,166 $81,293 $— $— $231,962 
Year-to-date charge-offs$— $— $— $66 $— $— $— $— $66 
SBA—non-real estate
Pass$10,443 $4,498 $1,837 $154 $1,303 $2,621 $— $— $20,856 
Special mention— — — — — — — — — 
Substandard— — 483 — 157 154 — — 794 
Doubtful— — — — — 98 — — 98 
Subtotal$10,443 $4,498 $2,320 $154 $1,460 $2,873 $— $— $21,748 
Year-to-date charge-offs$— $— $— $— $— $27 $— $— $27 
C&I
Pass$19,712 $11,525 $14,016 $18,122 $3,356 $2,664 $140,278 $3,024 $212,697 
Special mention— — — — — — 400 — 400 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Subtotal$19,712 $11,525 $14,016 $18,122 $3,356 $2,664 $140,678 $3,024 $213,097 
Year-to-date charge-offs$— $44 $— $— $— $— $— $— $44 
Home mortgage
Pass$42,112 $63,000 $284,208 $70,326 $17,749 $32,129 $— $— $509,524 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Subtotal$42,112 $63,000 $284,208 $70,326 $17,749 $32,129 $— $— $509,524 
Year-to-date charge-offs$— $— $— $— $— $— $— $— $— 
Consumer and other
Pass$27 $— $— $— $— $— $247 $— $274 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Subtotal$27 $— $— $— $— $— $247 $— $274 
Year-to-date charge-offs$— $— $— $— $— $— $— $— $— 
Total loans
Pass$304,876 $190,587 $532,404 $244,846 $127,567 $360,145 $157,537 $3,024 $1,920,986 
Special mention— — 2,924 2,246 — 739 400 — 6,309 
Substandard— 2,762 10,767 2,868 157 12,905 — — 29,459 
Doubtful— — — — — 98 — — 98 
Subtotal$304,876 $193,349 $546,095 $249,960 $127,724 $373,887 $157,937 $3,024 $1,956,852 
Year-to-date charge-offs$— $44 $— $66 $— $27 $— $— $137