Quarterly report pursuant to Section 13 or 15(d)

Loans, Net

v3.8.0.1
Loans, Net
3 Months Ended
Mar. 31, 2018
Receivables [Abstract]  
Loans, Net

NOTE 3. LOANS, NET

Loans consisted of the following at March 31, 2018 and December 31, 2017:

 

 

 

March 31,

2018

 

 

December 31,

2017

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans (1)

 

$

137,400

 

 

$

135,040

 

Real estate:

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

238,382

 

 

 

232,510

 

Construction, land and development

 

 

143,646

 

 

 

139,470

 

Commercial real estate loans (including multifamily)

 

 

289,571

 

 

 

285,731

 

Consumer loans and leases

 

 

20,824

 

 

 

22,736

 

Municipal and other loans

 

 

52,278

 

 

 

53,632

 

Total loans held in portfolio (2)

 

$

882,101

 

 

$

869,119

 

Allowance for loan losses

 

 

(5,727

)

 

 

(5,652

)

Loans held in portfolio, net

 

$

876,374

 

 

$

863,467

 

 

(1) Balance includes $70.1 million and $67.1 million of the unguaranteed portion of SBA loans as of March 31, 2018 and December 31, 2017, respectively.

(2) Balance includes $(3.5) million and $(3.4) million of deferred fees, cost, premium and discount as of March 31, 2018 and December 31, 2017, respectively.

At March 31, 2018 and December 31, 2017, the Company had pledged loans as collateral for FHLB advances of $359.5 million and $358.2 million, respectively. There were no recorded investments of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process as of March 31, 2018 and December 31, 2017.

The Company originates and sells loans secured by the SBA. The Company retains the unguaranteed portion of the loan and servicing on the loans sold and receives a fee based upon the principal balance outstanding. During the three months ended March 31, 2018 and 2017, the Company sold approximately $17.1 million and $13.5 million, respectively, in loans to third parties. The loan sales resulted in realized gains of $1.5 million and $1.0 million for the three months ended March 31, 2018 and 2017, respectively.

 

In the ordinary course of business, the Company makes loans to executive officers and directors. Loans to these related parties, including companies in which they are principal owners, are as follows:

 

 

 

Three Months Ended March 31,

 

 

 

2018

 

 

2017

 

 

 

(Dollars in thousands)

 

Principal outstanding, beginning of year

 

$

463

 

 

$

9,036

 

Additions (reductions) of affiliations

 

 

 

 

 

(7,708

)

New loans made in current year

 

 

 

 

 

 

Repayments

 

 

(21

)

 

 

(787

)

Principal outstanding, end of year

 

$

442

 

 

$

541

 

 

There were no unfunded commitments to related parties at March 31, 2018 or December 31, 2017.