0001419536-25-000063 | 10-Q | XBRL Viewer

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Portfolio Loans Receivable and Allowance for Credit Losses - Schedule of Past Due Loans Segregated by Age and Class of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	$ 2,683,792	$ 2,637,228
Accruing Loans 90 or More Days Past Due	1,567	1,644
Nonaccrual Loans	42,934	30,241
Total Past Due Loans
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	85,197	66,768
Loans 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	39,589	25,517
Loans 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	8,582	20,704
Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	37,026	20,547
Current Loans
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	2,598,595	2,570,460
Commercial and Industrial
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	594,331	554,550
Accruing Loans 90 or More Days Past Due	0	0
Nonaccrual Loans	7,851	2,968
Commercial and Industrial \| Total Past Due Loans
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	22,233	13,275
Commercial and Industrial \| Loans 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	14,181	10,981
Commercial and Industrial \| Loans 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	1,811	1,245
Commercial and Industrial \| Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	6,241	1,049
Commercial and Industrial \| Current Loans
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	572,098	541,275
Real estate: \| Residential
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	693,597	688,552
Accruing Loans 90 or More Days Past Due	63	0
Nonaccrual Loans	9,374	8,652
Real estate: \| Residential \| Total Past Due Loans
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	12,246	13,213
Real estate: \| Residential \| Loans 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	5,111	1,656
Real estate: \| Residential \| Loans 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	914	4,913
Real estate: \| Residential \| Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	6,221	6,644
Real estate: \| Residential \| Current Loans
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	681,351	675,339
Real estate: \| Commercial
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	931,675	943,019
Accruing Loans 90 or More Days Past Due	0	100
Nonaccrual Loans	21,441	14,312
Real estate: \| Commercial \| Total Past Due Loans
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	28,355	19,528
Real estate: \| Commercial \| Loans 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	8,753	4,957
Real estate: \| Commercial \| Loans 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	817	7,570
Real estate: \| Commercial \| Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	18,785	7,001
Real estate: \| Commercial \| Current Loans
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	903,320	923,491
Real estate: \| Construction
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	343,280	321,252
Accruing Loans 90 or More Days Past Due	0	0
Nonaccrual Loans	4,268	4,309
Real estate: \| Construction \| Total Past Due Loans
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	10,052	5,724
Real estate: \| Construction \| Loans 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	5,777	1,000
Real estate: \| Construction \| Loans 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	0	415
Real estate: \| Construction \| Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	4,275	4,309
Real estate: \| Construction \| Current Loans
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	333,228	315,528
Credit card, net of reserve \| Consumer
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	118,709	127,766
Accruing Loans 90 or More Days Past Due	1,504	1,544
Nonaccrual Loans	0	0
Credit card, net of reserve \| Consumer \| Total Past Due Loans
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	12,311	15,028
Credit card, net of reserve \| Consumer \| Loans 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	5,767	6,923
Credit card, net of reserve \| Consumer \| Loans 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	5,040	6,561
Credit card, net of reserve \| Consumer \| Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	1,504	1,544
Credit card, net of reserve \| Consumer \| Current Loans
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	106,398	112,738
Other consumer \| Consumer
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	2,200	2,089
Accruing Loans 90 or More Days Past Due	0	0
Nonaccrual Loans	0	0
Other consumer \| Consumer \| Total Past Due Loans
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	0	0
Other consumer \| Consumer \| Loans 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	0	0
Other consumer \| Consumer \| Loans 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	0	0
Other consumer \| Consumer \| Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	0	0
Other consumer \| Consumer \| Current Loans
Financing Receivable, Past Due [Line Items]
Total Portfolio Loans	$ 2,200	$ 2,089

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2025	Mar. 31, 2024
Pay vs Performance Disclosure
Net income	$ 13,932	$ 6,562

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 7 - Goodwill and Intangible Assets

The change in goodwill during the periods ended March 31, 2025 and December 31, 2024 is as follows:


(in thousands)	March 31, 2025		December 31, 2024
Balance at beginning of period	$	21,126	$	—
Acquired goodwill	—		21,126
Measurement period adjustment	2,959		—
Balance at end of period	$	24,085	$	21,126

During the first quarter of 2025, the Company revised the estimate of adjusted servicing assets and other liabilities resulting in a $3.0 million increase in goodwill at March 31, 2025 as compared to December 31, 2025. Goodwill is preliminary and subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values becomes available.

At March 31, 2025, the Company’s reporting units include attributable goodwill from the IFH acquisition. The Company has elected to perform a qualitative assessment annually as of October 1 to determine if it is more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill.

Acquired amortizing intangible assets were as follows for the period presented:


	March 31, 2025						December 31, 2024
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortized intangible assets:
Customer list intangible	$	12,200	$	(364)	$	11,836	$	12,200	$	(188)	$	12,012
Trade name intangible	2,100		(75)		2,025		2,100		(40)		2,060
Core deposits intangible	1,779		(84)		1,695		1,779		(34)		1,745
Total amortized intangible assets	$	16,079	$	(523)	$	15,556	$	16,079	$	(262)	$	15,817

Goodwill represents the intangible value of IFH’s business and reputation within the markets it previously served and is not expected to be deductible for income tax purposes. The customer list intangible and trade name intangible will be amortized over its expected useful life of 17 years and 15 years, respectively, using the straight-line method. The core deposit intangible will be amortized over its expected useful life of 10 years using the sum-of-the-years-digits method.

Amortization expense was $261 thousand and zero for the three months ended March 31, 2025 and 2024, respectively.

At March 31, 2025, scheduled amortization of the intangible assets for each of the next five years is as follows:


(in thousands)

2025	$	785
2026	1,043
2027	1,038
2028	1,033
2029	1,026
Thereafter	10,631
Total	$	15,556

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2025
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Goodwill [Roll Forward]
Balance at beginning of period	$ 21,126	$ 0	$ 0
Acquired goodwill	0		21,126
Measurement period adjustment	2,959	$ 0	0
Balance at end of period	$ 24,085		$ 21,126

- Definition

Amount, after accumulated impairment loss, of asset representing future economic benefit arising from other asset acquired in business combination or from joint venture formation or both, that is not individually identified and separately recognized.

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+ Details

Investment Securities - Amortized cost to Estimated Fair Value (Details) - USD ($)	Mar. 31, 2025	Dec. 31, 2024
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 225,566,000	$ 238,969,000
Gross Unrealized Gains	200,000	74,000
Gross Unrealized Losses	(12,314,000)	(15,413,000)
Allowance for Credit Losses	0	0
Fair Value	213,452,000	223,630,000
U.S. Treasuries
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	126,780,000	136,831,000
Gross Unrealized Gains	75,000	42,000
Gross Unrealized Losses	(8,068,000)	(10,038,000)
Allowance for Credit Losses	0	0
Fair Value	118,787,000	126,835,000
Municipal
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	11,698,000	11,698,000
Gross Unrealized Gains	8,000	5,000
Gross Unrealized Losses	(2,156,000)	(2,420,000)
Allowance for Credit Losses	0	0
Fair Value	9,550,000	9,283,000
Corporate
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	5,000,000	5,000,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(289,000)	(289,000)
Allowance for Credit Losses	0	0
Fair Value	4,711,000	4,711,000
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	5,391,000	5,501,000
Gross Unrealized Gains	23,000	25,000
Gross Unrealized Losses	0	0
Allowance for Credit Losses	0	0
Fair Value	5,414,000	5,526,000
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	76,697,000	79,939,000
Gross Unrealized Gains	94,000	2,000
Gross Unrealized Losses	(1,801,000)	(2,666,000)
Allowance for Credit Losses	0	0
Fair Value	$ 74,990,000	$ 77,275,000

Segments - Schedule of Financial Information by Reportable Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Segment Reporting Information [Line Items]
Interest income	$ 62,760	$ 48,369
Interest expense	16,713	13,361
Net interest income	46,047	35,008
Provision for credit losses	2,246	2,727
Provision for credit losses on unfunded commitments	0	142
Net interest income after provision for credit losses	43,801	32,139
Noninterest income
Loan servicing rights (government guaranteed)	472	0
Other income	1,602	431
Total noninterest income	12,549	5,972
Noninterest expenses
Salaries and employee benefits	18,067	12,907
Occupancy and equipment	2,910	1,613
Professional fees	2,112	1,947
Data processing	7,112	6,761
Advertising	1,779	2,032
Loan processing	743	371
Foreclosed real estate expenses, net	1	1
Merger-related expenses	1,266	712
Operational losses	903	931
Regulatory assessment expenses	889	473
Other operating	2,271	1,739
Other operating		2,671
Total noninterest expenses	38,053	29,487
Net income (loss) before taxes	18,297	8,624
Total assets	3,349,805	2,324,238	$ 3,206,911
Service charges on deposits
Noninterest income
Noninterest income	258	207
Credit card fees
Noninterest income
Noninterest income	3,722	3,881
Mortgage banking revenue
Noninterest income
Noninterest income	1,831	1,453
Government lending revenue
Noninterest income
Noninterest income	1,096	0
Government loan servicing revenue
Noninterest income
Noninterest income	3,568	0
Noninterest expenses
Gross revenue	4,600
Commercial Bank \| Government loan servicing revenue
Noninterest expenses
Servicing fees	1,000
Operating Segments \| Commercial Bank
Segment Reporting Information [Line Items]
Interest income	48,164	33,365
Interest expense	16,649	13,320
Net interest income	31,515	20,045
Provision for credit losses	446	1,168
Provision for credit losses on unfunded commitments		142
Net interest income after provision for credit losses	31,069	18,735
Noninterest income
Loan servicing rights (government guaranteed)	472
Other income	1,423	210
Total noninterest income	2,474	705
Noninterest expenses
Salaries and employee benefits	10,626	8,709
Occupancy and equipment	1,577	1,044
Professional fees	1,151	801
Data processing	440	316
Advertising	718	382
Loan processing	477	159
Foreclosed real estate expenses, net	1
Merger-related expenses	1,266	712
Operational losses	31
Regulatory assessment expenses	865	473
Other operating	1,408
Other operating		1,187
Total noninterest expenses	18,560	13,783
Net income (loss) before taxes	14,983	5,657
Total assets	3,192,327	$ 2,208,135
Goodwill and intangible assets	$ 24,100
Return on assets	1.90%	1.03%
Efficiency ratio	54.60%	66.40%
Operating Segments \| Commercial Bank \| Service charges on deposits
Noninterest income
Noninterest income	$ 258	$ 207
Total noninterest income	1,000
Operating Segments \| Commercial Bank \| Credit card fees
Noninterest income
Noninterest income	0	0
Operating Segments \| Commercial Bank \| Mortgage banking revenue
Noninterest income
Noninterest income	263	288
Operating Segments \| Commercial Bank \| Government lending revenue
Noninterest income
Noninterest income	1,096
Operating Segments \| Commercial Bank \| Government loan servicing revenue
Noninterest income
Noninterest income	(1,038)
Operating Segments \| OpenSky™
Segment Reporting Information [Line Items]
Interest income	14,444	14,921
Interest expense	0	0
Net interest income	14,444	14,921
Provision for credit losses	1,800	1,559
Provision for credit losses on unfunded commitments		0
Net interest income after provision for credit losses	12,644	13,362
Noninterest income
Loan servicing rights (government guaranteed)	0
Other income	11	34
Total noninterest income	3,733	3,915
Noninterest expenses
Salaries and employee benefits	3,345	2,812
Occupancy and equipment	488	434
Professional fees	591	941
Data processing	6,582	6,407
Advertising	874	1,592
Loan processing	19	13
Foreclosed real estate expenses, net	0
Merger-related expenses	0	0
Operational losses	872
Regulatory assessment expenses	15	0
Other operating	516
Other operating		1,400
Total noninterest expenses	13,302	13,599
Net income (loss) before taxes	3,075	3,678
Total assets	119,636	105,318
Operating Segments \| OpenSky™ \| Service charges on deposits
Noninterest income
Noninterest income	0
Operating Segments \| OpenSky™ \| Credit card fees
Noninterest income
Noninterest income	3,722	3,881
Operating Segments \| OpenSky™ \| Mortgage banking revenue
Noninterest income
Noninterest income	0	0
Operating Segments \| OpenSky™ \| Government lending revenue
Noninterest income
Noninterest income	0
Operating Segments \| OpenSky™ \| Government loan servicing revenue
Noninterest income
Noninterest income	0
Operating Segments \| Windsor Advantage™
Segment Reporting Information [Line Items]
Interest income	0
Interest expense	0
Net interest income	0
Provision for credit losses	0
Net interest income after provision for credit losses	0
Noninterest income
Loan servicing rights (government guaranteed)	0
Other income	0
Total noninterest income	4,606
Noninterest expenses
Salaries and employee benefits	2,406
Occupancy and equipment	711
Professional fees	120
Data processing	53
Advertising	104
Loan processing	7
Foreclosed real estate expenses, net	0
Merger-related expenses	0
Operational losses	0
Regulatory assessment expenses	5
Other operating	254
Total noninterest expenses	3,660
Net income (loss) before taxes	946
Total assets	23,750
Goodwill and intangible assets	13,900
Operating Segments \| Windsor Advantage™ \| Service charges on deposits
Noninterest income
Noninterest income	0
Total noninterest income	4,600
Operating Segments \| Windsor Advantage™ \| Credit card fees
Noninterest income
Noninterest income	0
Operating Segments \| Windsor Advantage™ \| Mortgage banking revenue
Noninterest income
Noninterest income	0
Operating Segments \| Windsor Advantage™ \| Government lending revenue
Noninterest income
Noninterest income	0
Operating Segments \| Windsor Advantage™ \| Government loan servicing revenue
Noninterest income
Noninterest income	4,606
Operating Segments \| CBHL
Segment Reporting Information [Line Items]
Interest income	152	83
Interest expense	64	41
Net interest income	88	42
Provision for credit losses	0	0
Provision for credit losses on unfunded commitments		0
Net interest income after provision for credit losses	88	42
Noninterest income
Loan servicing rights (government guaranteed)	0
Other income	168	187
Total noninterest income	1,736	1,352
Noninterest expenses
Salaries and employee benefits	1,690	1,386
Occupancy and equipment	134	135
Professional fees	250	205
Data processing	37	38
Advertising	83	58
Loan processing	240	199
Foreclosed real estate expenses, net	0
Merger-related expenses	0	0
Operational losses	0
Regulatory assessment expenses	4	0
Other operating	93
Other operating		84
Total noninterest expenses	2,531	2,105
Net income (loss) before taxes	(707)	(711)
Total assets	14,092	10,785
Operating Segments \| CBHL \| Service charges on deposits
Noninterest income
Noninterest income	0	0
Operating Segments \| CBHL \| Credit card fees
Noninterest income
Noninterest income	0	0
Operating Segments \| CBHL \| Mortgage banking revenue
Noninterest income
Noninterest income	1,568	$ 1,165
Operating Segments \| CBHL \| Government lending revenue
Noninterest income
Noninterest income	0
Operating Segments \| CBHL \| Government loan servicing revenue
Noninterest income
Noninterest income	$ 0

Portfolio Loans Receivable and Allowance for Credit Losses - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2025 USD ($) loanModification	Mar. 31, 2024 loanModification	Dec. 31, 2024 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, amount	$ 2,683,792		$ 2,637,228
Number of loan modifications \| loanModification	12	0
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, amount	$ 594,331		554,550
Specific reserve on collateral dependent loans	5,100		4,800
Real estate: \| Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, amount	693,597		688,552
Specific reserve on collateral dependent loans	46		147
Real estate: \| Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, amount	931,675		943,019
Specific reserve on collateral dependent loans	4,500		4,100
Residential Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, amount	$ 9,000		$ 7,200

Leases (Tables)

3 Months Ended

Mar. 31, 2025

Leases [Abstract]

Schedule of Assets and Liabilities, Lessee

The Company’s lease information is summarized as follows:


(in thousands)	March 31, 2025		December 31, 2024
Lease Right of Use Asset:
Lease asset	$	6,821	$	6,821
Less: Accumulated amortization	(1,976)		(1,557)
Net lease asset	$	4,845	$	5,264



Lease Liability:
Lease liability	$	7,154	7,154
Less: Accumulated amortization	(1,669)		(1,282)
Net lease liability	$	5,485	$	5,872

Schedule of Lessee, Operating Lease, Liability, Maturity

Future minimum payments for operating leases with initial or remaining terms of one year or more are as follows:


(in thousands)	March 31, 2025
Amounts due in:
2025	$	1,569
2026	1,933
2027	626
2028	449
2029	441
2030 and thereafter	1,188
Total future lease payments	6,206
Discount of cash flows	(721)
Present value of net future lease payments	$	5,485

Investment Securities

3 Months Ended

Mar. 31, 2025

Investments, Debt and Equity Securities [Abstract]

Investment Securities

The following table summarizes the amortized cost, fair value and allowance for credit losses (“ACL”) of securities available-for-sale at March 31, 2025 and December 31, 2024, respectively, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss:


(in thousands)
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
March 31, 2025
U.S. Treasuries	$	126,780	$	75	$	(8,068)	$	—	$	118,787

Municipal	11,698		8		(2,156)		—		9,550
Corporate	5,000		—		(289)		—		4,711
Asset-backed securities	5,391		23		—		—		5,414
Mortgage-backed securities	76,697		94		(1,801)		—		74,990
Total	$	225,566	$	200	$	(12,314)	$	—	$	213,452

December 31, 2024
U.S. Treasuries	$	136,831	$	42	$	(10,038)	$	—	$	126,835

Municipal	11,698		5		(2,420)		—		9,283
Corporate	5,000		—		(289)		—		4,711
Asset-backed securities	5,501		25		—		—		5,526
Mortgage-backed securities	79,939		2		(2,666)		—		77,275
Total	$	238,969	$	74	$	(15,413)	$	—	$	223,630

There were no securities sold during the three months ended March 31, 2025 or the three months ended March 31, 2024. There was no ACL required on available-for-sale debt securities in an unrealized loss position at March 31, 2025 and December 31, 2024.

The amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.


	March 31, 2025				December 31, 2024
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	10,000	$	9,993	$	20,003	$	19,882
One to five years	97,014		91,901		97,052		90,570
Five to ten years	31,946		27,732		29,785		25,446
Beyond ten years	4,518		3,422		6,689		4,931
Asset-backed securities(1)	5,391		5,414		5,501		5,526
Mortgage-backed securities(1)	76,697		74,990		79,939		77,275
Total	$	225,566	$	213,452	$	238,969	$	223,630

_______________

(1) Asset-backed and Mortgage-backed securities are due in monthly installments.

There were no securities pledged at March 31, 2025 and December 31, 2024 to secure public deposits and repurchase agreements.

At March 31, 2025 and December 31, 2024, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.

The following table summarizes debt securities available-for-sale in an unrealized loss position for which an ACL has not been recorded at March 31, 2025 and December 31, 2024, aggregated by major security type and length of time in a continuous unrealized loss position:


	Less than 12 months				12 months or longer				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2025
U.S. Treasuries	$	—	$	—	$	102,987	$	(8,068)	$	102,987	$	(8,068)
Municipal	—		—		8,634		(2,156)		8,634		(2,156)
Corporate	—		—		4,711		(289)		4,711		(289)

Mortgage-backed securities	36,339		(342)		18,201		(1,459)		54,540		(1,801)
Total	$	36,339	$	(342)	$	134,533	$	(11,972)	$	170,872	$	(12,314)

December 31, 2024
U.S. Treasuries	$	10,883	$	(93)	$	111,196	$	(9,945)	$	122,079	$	(10,038)

Municipal	—		—		8,373		(2,420)		8,373		(2,420)
Corporate	—		—		4,711		(289)		4,711		(289)

Mortgage-backed securities	55,243		(901)		18,272		(1,765)		73,515		(2,666)
Total	$	66,126	$	(994)	$	142,552	$	(14,419)	$	208,678	$	(15,413)

As of March 31, 2025, management determined the Company does not have the intent to sell, nor is it more likely than not that it will be required to sell, available-for-sale debt securities in an unrealized loss position at March 31, 2025 before it is able to recover the amortized cost basis. Further, management reviewed the Company’s holdings as of March 31, 2025 and concluded there were no credit-related declines in fair value. Additional information related to the types of securities held at March 31, 2025,

other than securities issued or guaranteed by U.S. Government entities or agencies including U.S. Treasuries and substantially all of the Company’s mortgage-backed securities, is as follows:

Corporate Securities — There have been no payment defaults on any of the Company’s holdings of corporate debt securities. There are five securities all of which are subordinated debt of other financial institutions with face amounts ranging from $0.5 million to $2 million.

Municipal Securities — All of the Company’s holdings of municipal bonds were investment grade and there have been no payment defaults. Summary ratings information at March 31, 2025, based on the amortized cost basis and reflecting the lowest enhanced or underlying rating by Moody’s, Standard & Poors or Fitch, is as follows: AAA - 82% of the portfolio; AA+ - 8%; AA - 10%.

Asset-backed Securities — There were three investment grade asset-backed securities, and there have been no payment defaults on these securities.

As such, it is deemed the above listed securities are not in an unrealized loss position due to credit-related issues and no further analysis is warranted as of March 31, 2025.

Segments - Narrative (Details) $ in Thousands	3 Months Ended
Segments - Narrative (Details) $ in Thousands	Mar. 31, 2025 USD ($) segment	Dec. 31, 2024 USD ($)	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments \| segment	4
Portfolio loans receivable, net	$ 2,629,952	$ 2,581,511
Allowance for loan losses	48,454	$ 48,652	$ 29,350	$ 28,610
Church Street Capital
Segment Reporting Information [Line Items]
Portfolio loans receivable, net	6,700
Allowance for loan losses	$ 184

Portfolio Loans Receivable and Allowance for Credit Losses - Schedule of Nonaccrual Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Financing Receivable, Past Due [Line Items]
Nonaccrual with No Allowance for Credit Loss	$ 32,880	$ 15,816
Nonaccrual with an Allowance for Credit Loss	10,054	14,425
Total Nonaccrual Loans	42,934	30,241
Interest Recognized on Nonaccrual Loans	675	410
Collateral dependent loans amortized cost	42,592	34,435
Commercial and Industrial
Financing Receivable, Past Due [Line Items]
Nonaccrual with No Allowance for Credit Loss	2,384	247
Nonaccrual with an Allowance for Credit Loss	5,467	2,721
Total Nonaccrual Loans	7,851	2,968
Interest Recognized on Nonaccrual Loans	119	106
Collateral dependent loans amortized cost	10,755	6,551
Real estate: \| Residential
Financing Receivable, Past Due [Line Items]
Nonaccrual with No Allowance for Credit Loss	9,328	8,055
Nonaccrual with an Allowance for Credit Loss	46	597
Total Nonaccrual Loans	9,374	8,652
Interest Recognized on Nonaccrual Loans	138	38
Collateral dependent loans amortized cost	8,094	8,780
Real estate: \| Commercial
Financing Receivable, Past Due [Line Items]
Nonaccrual with No Allowance for Credit Loss	16,900	3,205
Nonaccrual with an Allowance for Credit Loss	4,541	11,107
Total Nonaccrual Loans	21,441	14,312
Interest Recognized on Nonaccrual Loans	103	122
Collateral dependent loans amortized cost	19,475	14,803
Real estate: \| Construction
Financing Receivable, Past Due [Line Items]
Nonaccrual with No Allowance for Credit Loss	4,268	4,309
Nonaccrual with an Allowance for Credit Loss	0	0
Total Nonaccrual Loans	4,268	4,309
Interest Recognized on Nonaccrual Loans	315	144
Collateral dependent loans amortized cost	$ 4,268	$ 4,301

Investment Securities - Narrative (Details)	3 Months Ended
Investment Securities - Narrative (Details)	Mar. 31, 2025 USD ($) security	Mar. 31, 2024 security	Dec. 31, 2024 USD ($)
Debt Securities, Available-for-sale [Line Items]
Number of securities sold \| security	0	0
Allowance for Credit Losses	$ 0		$ 0
AAA Rating
Debt Securities, Available-for-sale [Line Items]
% of Total Loan Type	82.00%
AA+ Rating
Debt Securities, Available-for-sale [Line Items]
% of Total Loan Type	8.00%
AA Rating
Debt Securities, Available-for-sale [Line Items]
% of Total Loan Type	10.00%
Minimum
Debt Securities, Available-for-sale [Line Items]
Subordinated debt	$ 500,000
Maximum
Debt Securities, Available-for-sale [Line Items]
Subordinated debt	2,000,000
Corporate
Debt Securities, Available-for-sale [Line Items]
Allowance for Credit Losses	$ 0		0
Number of securities in a loss position for greater than twelve months \| security	5
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Allowance for Credit Losses	$ 0		$ 0
Number of securities in a loss position for greater than twelve months \| security	3

Fair Value - Schedule of Carrying Amount, Fair Value and Fair Value Hierarchy of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Financial assets
Cash and due from banks	$ 27,836	$ 25,433
Interest-bearing deposits at other financial institutions	266,092	179,841
Federal funds sold	59	58
Accrued interest receivable	19,458	16,664
Financial liabilities
Accrued interest payable	9,995	9,393
Carrying Amount \| Level 1
Financial assets
Cash and due from banks	27,836	25,433
Interest-bearing deposits at other financial institutions	266,092	179,841
Federal funds sold	59	58
Financial liabilities
Noninterest-bearing deposits	812,224	810,928
Carrying Amount \| Level 2
Financial assets
Accrued interest receivable	19,458	16,664
Financial liabilities
Accrued interest payable	9,995	9,393
Carrying Amount \| Level 3
Financial assets
Portfolio loans receivable, net	2,629,952	2,581,511
Restricted investments	7,031	4,479
Financial liabilities
Interest-bearing deposits	2,079,109	1,951,011
FHLB advances and other borrowed funds	34,062	34,062
Fair Value \| Level 1
Financial assets
Cash and due from banks	27,836	25,433
Interest-bearing deposits at other financial institutions	266,092	179,841
Federal funds sold	59	58
Financial liabilities
Noninterest-bearing deposits	812,224	810,928
Fair Value \| Level 2
Financial assets
Accrued interest receivable	19,458	16,664
Financial liabilities
Accrued interest payable	9,995	9,393
Fair Value \| Level 3
Financial assets
Portfolio loans receivable, net	2,576,493	2,499,578
Restricted investments	7,031	4,479
Financial liabilities
Interest-bearing deposits	2,090,429	1,960,728
FHLB advances and other borrowed funds	$ 33,654	$ 32,372

Acquisition - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ / shares in Units, $ in Thousands	Oct. 01, 2024	Mar. 31, 2025	Dec. 31, 2024	Sep. 30, 2024	Dec. 31, 2023
Liabilities
Goodwill		$ 24,085	$ 21,126		$ 0
IFH
Purchase Price Consideration and Net Assets Acquired
Shares of common stock issued (in shares)	2,631,847
Price per share (in dollars per share)				$ 25.71
Common stock consideration	$ 67,665
Cash consideration	12,652
Consideration for other equity instruments	3,199
Purchase price consideration	83,516
Assets
Cash and cash equivalents	77,822
Investment securities available-for-sale	1,019
Loans held for sale	41,723
Portfolio loans held for investment, net	362,180
Premises and equipment, net	7,104
Loan servicing assets	4,515
Deferred tax asset	9,324
Bank owned life insurance	4,779
Other assets	13,731
Total assets acquired	538,276
Liabilities
Deposits	458,952
Other liabilities	16,934
Total liabilities assumed	475,886
Total identifiable net assets	62,390
Goodwill	21,126
IFH \| Customer list intangible
Assets
Intangible assets	12,200
IFH \| Trade name intangible
Assets
Intangible assets	2,100
IFH \| Core deposits intangible
Assets
Intangible assets	$ 1,779

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2025	May 07, 2025
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2025
Document Transition Report	false
Entity File Number	001-38671
Entity Registrant Name	CAPITAL BANCORP INC
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	52-2083046
Entity Address, Address Line One	2275 Research Boulevard
Entity Address, Address Line Two	Suite 600
Entity Address, City or Town	Rockville
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	20850
City Area Code	301
Local Phone Number	468-8848
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	CBNK
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		16,564,341
Amendment Flag	false
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001419536
Current Fiscal Year End Date	--12-31

Investment Securities - Unrealized Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Fair Value
Less than 12 months	$ 36,339	$ 66,126
12 months or longer	134,533	142,552
Total	170,872	208,678
Unrealized Losses
Less than 12 months	(342)	(994)
12 months or longer	(11,972)	(14,419)
Total	(12,314)	(15,413)
U.S. Treasuries
Fair Value
Less than 12 months	0	10,883
12 months or longer	102,987	111,196
Total	102,987	122,079
Unrealized Losses
Less than 12 months	0	(93)
12 months or longer	(8,068)	(9,945)
Total	(8,068)	(10,038)
Municipal
Fair Value
Less than 12 months	0	0
12 months or longer	8,634	8,373
Total	8,634	8,373
Unrealized Losses
Less than 12 months	0	0
12 months or longer	(2,156)	(2,420)
Total	(2,156)	(2,420)
Corporate
Fair Value
Less than 12 months	0	0
12 months or longer	4,711	4,711
Total	4,711	4,711
Unrealized Losses
Less than 12 months	0	0
12 months or longer	(289)	(289)
Total	(289)	(289)
Mortgage-backed securities
Fair Value
Less than 12 months	36,339	55,243
12 months or longer	18,201	18,272
Total	54,540	73,515
Unrealized Losses
Less than 12 months	(342)	(901)
12 months or longer	(1,459)	(1,765)
Total	$ (1,801)	$ (2,666)

Nature of Business and Basis of Presentation	3 Months Ended
Nature of Business and Basis of Presentation	Mar. 31, 2025
Accounting Policies [Abstract]
Nature of Business and Basis of Presentation	Note 1 - Nature of Business and Basis of Presentation Nature of operations: Capital Bancorp, Inc. is a Maryland corporation and the bank holding company (the “Company”) for Capital Bank, N.A. (the “Bank”). The Company's primary operations are conducted by the Bank, which is headquartered in Rockville, Maryland. The Company serves businesses, not-for-profit associations, entrepreneurs and others throughout the Washington D.C., Baltimore, other Maryland metropolitan areas, Florida, Illinois and North Carolina through seven commercial bank branches, one mortgage banking office, three loan production offices, three government loan servicing offices, and one credit card operations office. The Bank is principally engaged in providing commercial, real estate, and credit card loans along with other banking services, and attracting deposits. The Company issues credit cards through OpenSky™, a digitally-driven, nationwide credit card platform providing secured, partially secured, and unsecured credit solutions, and originates residential mortgages for sale in the secondary market through Capital Bank Home Loans (“CBHL”), the Bank’s residential mortgage banking arm. Additionally, Windsor Advantage™, a wholly-owned subsidiary of the Company, is a loan service provider that offers community banks and credit unions with a comprehensive U.S. Small Business Association (“SBA”) 7(a) and U.S. Department of Agriculture (“USDA”) lending platform. In addition, the Company owns all of the stock of Capital Bancorp (MD) Statutory Trust I (the “Trust”). The Trust is a special purpose non-consolidated entity organized for the sole purpose of issuing trust preferred securities. Basis of presentation: The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with rules and regulations of the Securities and Exchange Commission (“SEC”) and include the activity of the Company and its wholly-owned subsidiaries, the Bank, Windsor Advantage™, and Church Street Capital. The statements do not include all of the information and footnotes required by GAAP for complete financial statements. All adjustments have been made which, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. Such adjustments are all of a normal and recurring nature. All significant inter-company accounts and transactions have been eliminated in consolidation. The results of operations for the three months ended March 31, 2025 are not necessarily indicative of the results that may be expected for the full year. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto as of December 31, 2024, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024. The Company reports its activities as four divisions and reporting segments: Commercial Banking, OpenSky™, Windsor Advantage™, and Capital Bank Home Loans. In determining the appropriateness of segment definition, the Company considers components of the business about which financial information is available and regularly evaluated relative to resource allocation and performance assessment. Significant accounting policies: The preparation of consolidated financial statements in accordance with GAAP requires estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. The primary reference point for the estimates is on historical experience and assumptions believed to be reasonable regarding the value of certain assets and liabilities that are not readily available from other sources. Estimates are evaluated on an ongoing basis. Actual results may materially differ from these estimates under different assumptions or conditions. The Company’s significant accounting policies are described in the “Notes to the Consolidated Financial Statements” included in our Annual Report on Form 10-K for the year ended December 31, 2024. There have been no changes to our significant accounting policies during the three months ended March 31, 2025. Recent Adoption of New Accounting Standards In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2023-07, "Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). ASU 2023-07 requires public entities to disclose significant segment expenses, an amount and description for other segment items, the title and position of the entity’s chief operating decision maker ("CODM") and an explanation of how the CODM uses the reported measures of profit or loss to assess segment performance, and, on an interim basis, certain segment related disclosures that previously were required only on an annual basis. ASU 2023-07 also clarifies that entities with a single reportable segment are subject to both new and existing segment reporting requirements and that an entity is permitted to disclose multiple measures of segment profit or loss, provided that certain criteria are met. ASU 2023-07 is effective for the Company for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted ASU 2023-07 effective December 31, 2024. See Note 9 - Segments for new disclosures required by ASU 2023-07. Recently Issued Accounting Pronouncements: In December 2023, the FASB issued Accounting Standards Update 2023-09, “Income Taxes (Topic 740), Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires public entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. ASU 2023-09 also requires all entities to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold, among other things. ASU 2023-09 is effective for the Company for fiscal years beginning after December 15, 2024 with early adoption permitted. The Company will update its income tax disclosures upon adoption. In November 2024, the FASB issued Accounting Standards Update 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40)" ("ASU 2024-03"). ASU 2024-03 requires public entities to provide disaggregated disclosures, in the notes to the financial statements, of certain categories of expenses that are included in expense line items on the face of the income statement. ASU 2024-03 is effective for the Company for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company will update its expense disclosures upon adoption. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company's financial position, results of operations or cash flows. Reclassifications: Certain reclassifications have been made to amounts reported in prior periods to conform to the current period presentation. The reclassifications had no material effect on net income or total stockholders' equity. Subsequent events: Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. For further information on a subsequent event related to the Company’s quarterly dividend, refer to Note 10.

Portfolio Loans Receivable and Allowance for Credit Losses - Schedule of Loan Modifications to Borrowers Experiencing Financial Difficulty (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2025 USD ($) loanModification	Mar. 31, 2024 loanModification
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of loan modifications \| loanModification	12	0
Amortized Cost Basis	$ 4,084
Residential \| Real estate: \| Contractual Interest Rate Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	$ 806
% of Total Loan Type	0.116%
Contractual interest rate before loan modifications	8.375%
Contractual interest rate loan modifications	6.375%
Residential \| Residential - Home Equity \| Contractual Interest Rate Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	$ 90
% of Total Loan Type	0.159%
Contractual interest rate before loan modifications	10.49%
Contractual interest rate loan modifications	6.375%
Commercial \| Real estate: \| Payment Deferral
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	$ 665
% of Total Loan Type	0.073%
Commercial \| Real estate: \| Payment Deferral \| Loan Modification One
Financing Receivable, Troubled Debt Restructuring [Line Items]
Payment deferral period after loan modifications	3 months
Commercial \| Real estate: \| Payment Deferral \| Loan Modification Three
Financing Receivable, Troubled Debt Restructuring [Line Items]
Payment deferral period after loan modifications	12 months
Commercial and Industrial \| Extended Maturity and Interest Rate Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	$ 2,523
% of Total Loan Type	0.425%
Commercial and Industrial \| Extended Maturity and Interest Rate Reduction \| Loan Modification One
Financing Receivable, Troubled Debt Restructuring [Line Items]
Contractual interest rate loan modifications	6.00%
Term increase to the life of the loan after loan modifications	60 months
Commercial and Industrial \| Extended Maturity and Interest Rate Reduction \| Loan Modification Two
Financing Receivable, Troubled Debt Restructuring [Line Items]
Contractual interest rate loan modifications	6.00%
Payment deferral period after loan modifications	3 months
Term increase to the life of the loan after loan modifications	60 months
Commercial and Industrial \| Payment Deferral \| Loan Modification One
Financing Receivable, Troubled Debt Restructuring [Line Items]
Payment deferral period after loan modifications	9 months
Commercial and Industrial \| Payment Deferral \| Loan Modification Two
Financing Receivable, Troubled Debt Restructuring [Line Items]
Payment deferral period after loan modifications	12 months

Fair Value - Schedule of Fair Value of Loans Held for Sale (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale	$ 34,656	$ 21,270
Difference
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale	4,860	4,549
Aggregate fair value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale	34,656	21,270
Contractual principal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale	$ 29,796	$ 16,721

Fair Value - Schedule of Unobservable Inputs in Fair Value Measurements (Details) - Level 3	Mar. 31, 2025	Dec. 31, 2024
Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually evaluated loans, discounts to appraisals or cash flows for estimated holding and/or selling costs, percent	0.00%	0.00%
Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually evaluated loans, discounts to appraisals or cash flows for estimated holding and/or selling costs, percent	30.00%	30.00%

Segments (Tables)

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Schedule of Financial Information by Reportable Segment

The following schedules reported internally for performance assessment by the chief operating

decision maker presents financial information for each reportable segment at and for the three months ended March 31, 2025 and 2024.


For the Three Months Ended March 31, 2025
(in thousands)	Commercial Bank		OpenSky™		Windsor Advantage™		CBHL		Consolidated
Interest income	$	48,164	$	14,444	$	—	$	152	$	62,760
Interest expense	16,649		—		—		64		16,713
Net interest income	31,515		14,444		—		88		46,047
Provision for credit losses	446		1,800		—		—		2,246

Net interest income after provision	31,069		12,644		—		88		43,801
Noninterest income
Service charges on deposits	258		—		—		—		258
Credit card fees	—		3,722		—		—		3,722
Mortgage banking revenue	263		—		—		1,568		1,831
Government lending revenue	1,096		—		—		—		1,096
Government loan servicing revenue(1)	(1,038)		—		4,606		—		3,568
Loan servicing rights (government guaranteed)	472		—		—		—		472
Other income	1,423		11		—		168		1,602
Total noninterest income	2,474		3,733		4,606		1,736		12,549
Noninterest expenses
Salaries and employee benefits	10,626		3,345		2,406		1,690		18,067
Occupancy and equipment	1,577		488		711		134		2,910
Professional fees	1,151		591		120		250		2,112
Data processing	440		6,582		53		37		7,112
Advertising	718		874		104		83		1,779
Loan processing	477		19		7		240		743
Foreclosed real estate expenses, net	1		—		—		—		1
Merger-related expenses	1,266		—		—		—		1,266
Operational losses	31		872		—		—		903
Regulatory assessment expenses	865		15		5		4		889
Other operating	1,408		516		254		93		2,271
Total noninterest expenses	18,560		13,302		3,660		2,531		38,053
Net income (loss) before taxes	$	14,983	$	3,075	$	946	$	(707)	$	18,297

Total assets	$	3,192,327	$	119,636	$	23,750	$	14,092	$	3,349,805

(1) Gross government loan servicing revenue totaled $4.6 million, including $1.0 million of Commercial Bank related servicing fees, during 1Q 2025.


For the Three Months Ended March 31, 2024
(in thousands)	Commercial Bank		OpenSky™		CBHL		Consolidated
Interest income	$	33,365	$	14,921	$	83	$	48,369
Interest expense	13,320		—		41		13,361
Net interest income	20,045		14,921		42		35,008
Provision for credit losses	1,168		1,559		—		2,727
Provision for credit losses on unfunded commitments	142		—		—		142
Net interest income after provision	18,735		13,362		42		32,139
Noninterest income
Service charges on deposits	207				—		207
Credit card fees	—		3,881		—		3,881
Mortgage banking revenue	288		—		1,165		1,453
Other income	210		34		187		431
Total noninterest income	705		3,915		1,352		5,972
Noninterest expense
Salaries and employee benefits	8,709		2,812		1,386		12,907
Occupancy and equipment	1,044		434		135		1,613
Professional fees	801		941		205		1,947
Data processing	316		6,407		38		6,761
Advertising	382		1,592		58		2,032
Loan processing	159		13		199		371

Merger-related expenses	712		—		—		712

Regulatory assessment expenses	473		—		—		473
Other operating	1,187		1,400		84		2,671
Total noninterest expenses	13,783		13,599		2,105		29,487
Net income (loss) before taxes	$	5,657	$	3,678	$	(711)	$	8,624

Total assets	$	2,208,135	$	105,318	$	10,785	$	2,324,238

Notable items:

–Total assets includes goodwill and intangible assets of $24.1 million at the Commercial Bank and $13.9 million within Windsor Advantage™ at March 31, 2025.

–Commercial Bank’s return on assets of 1.90% and 1.03% for the three months ended March 31, 2025 and 2024, respectively, is calculated by dividing net income before taxes by total assets.

–Commercial Bank’s efficiency ratio of 54.6% and 66.4% for the three months ended March 31, 2025 and 2024, respectively, is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income).

–Windsor Advantage’s™ service charge revenues from Windsor™ customers, included within noninterest income, totaled $4.6 million, including $1.0 million of Capital Bank related servicing fees, for the three months ended March 31, 2025.

Investment Securities - By Maturity Dates (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Amortized Cost
Within one year	$ 10,000	$ 20,003
One to five years	97,014	97,052
Five to ten years	31,946	29,785
Beyond ten years	4,518	6,689
Amortized Cost	225,566	238,969
Fair Value
Within one year	9,993	19,882
One to five years	91,901	90,570
Five to ten years	27,732	25,446
Beyond ten years	3,422	4,931
Fair Value	213,452	223,630
Asset-backed securities
Amortized Cost
Amortized Cost	5,391	5,501
Fair Value
Fair Value	5,414	5,526
Mortgage-backed securities
Amortized Cost
Amortized Cost	76,697	79,939
Fair Value
Fair Value	$ 74,990	$ 77,275

Loan Servicing - Narrative (Details)	3 Months Ended	12 Months Ended
Loan Servicing - Narrative (Details)	Mar. 31, 2025	Dec. 31, 2024
Servicing Assets at Fair Value [Line Items]
Discount rate	13.50%	13.50%
Weighted average default rate	0.70%	0.70%
Minimum
Servicing Assets at Fair Value [Line Items]
Prepayment speeds	13.20%	12.80%
Maximum
Servicing Assets at Fair Value [Line Items]
Prepayment speeds	18.50%	18.20%

Nature of Business and Basis of Presentation (Details)	3 Months Ended
Nature of Business and Basis of Presentation (Details)	Mar. 31, 2025 property segment
Accounting Policies [Line Items]
Number of reportable segments \| segment	4
Commercial Bank Branch
Accounting Policies [Line Items]
Number of bank offices and branches	7
Mortgage Banking Office
Accounting Policies [Line Items]
Number of bank offices and branches	1
Loan Production Office
Accounting Policies [Line Items]
Number of bank offices and branches	3
Government Loan Servicing Office
Accounting Policies [Line Items]
Number of bank offices and branches	3
Credit Card Operations Office
Accounting Policies [Line Items]
Number of bank offices and branches	1

Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares	Mar. 31, 2025	Dec. 31, 2024
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	49,000,000	49,000,000
Common stock, shares issued (in shares)	16,657,168	16,662,626
Common stock, shares outstanding (in shares)	16,657,168	16,662,626

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Finite-Lived Intangible Assets [Line Items]
Increase in goodwill due to adjustments	$ 2,959	$ 0	$ 0
Amortization of intangible assets	$ 261	$ 0
Customer list intangible
Finite-Lived Intangible Assets [Line Items]
Expected useful life of intangibles acquired	17 years
Trade name intangible
Finite-Lived Intangible Assets [Line Items]
Expected useful life of intangibles acquired	15 years
Core deposits intangible
Finite-Lived Intangible Assets [Line Items]
Expected useful life of intangibles acquired	10 years
IFH
Finite-Lived Intangible Assets [Line Items]
Increase in goodwill due to adjustments	$ 3,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Loan Servicing

3 Months Ended

Mar. 31, 2025

Transfers and Servicing [Abstract]

Loan Servicing

Activity for loan servicing rights and the related valuation allowance as follows for the periods presented:


Loan servicing rights:
(in thousands)	March 31, 2025		December 31, 2024
Balance at beginning of period	$	5,511	$	—
Additions	110		5,096

Other changes in fair value	(3,377)		415
Balance at end of period	$	2,244	$	5,511

The fair value at March 31, 2025 was determined using a discount rate of 13.5%, prepayment speeds ranging from 13.2% to 18.5%, depending on the stratification of the specific right, and a weighted average default rate of 0.7%. The fair value at December 31, 2024 was determined using a discount rate of 13.5%, prepayment speeds ranging from 12.8% to 18.2%, depending on the stratification of the specific right, and a weighted average default rate of 0.7%. The changes in fair value for loan servicing rights from December 31, 2024 to March 31, 2025 was due to the refinement of assumptions used in the valuation of the servicing assets post acquisition.

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-04(11))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479170/946-210-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481420/860-30-50-1A

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-Topic 860
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-Section 50
-Paragraph 4
-Subparagraph (a)(7)
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-URI https://asc.fasb.org/1943274/2147481229/860-50-50-4

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481229/860-50-50-4

+ Details

Portfolio Loans Receivable and Allowance for Credit Losses - Schedule of Loan Modifications Past Due (Details) $ in Thousands	Mar. 31, 2025 USD ($)
Financing Receivable, Past Due [Line Items]
Total loans modified in last twelve months	$ 5,619
Nonaccrual	1,473
Current Loans
Financing Receivable, Past Due [Line Items]
Total loans modified in last twelve months	4,146
Past Due 30-89 Days
Financing Receivable, Past Due [Line Items]
Total loans modified in last twelve months	0
Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans modified in last twelve months	0
Residential \| Real estate:
Financing Receivable, Past Due [Line Items]
Total loans modified in last twelve months	806
Nonaccrual	0
Residential \| Real estate: \| Current Loans
Financing Receivable, Past Due [Line Items]
Total loans modified in last twelve months	806
Residential \| Real estate: \| Past Due 30-89 Days
Financing Receivable, Past Due [Line Items]
Total loans modified in last twelve months	0
Residential \| Real estate: \| Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans modified in last twelve months	0
Residential \| Residential - Home Equity
Financing Receivable, Past Due [Line Items]
Total loans modified in last twelve months	90
Nonaccrual	0
Residential \| Residential - Home Equity \| Current Loans
Financing Receivable, Past Due [Line Items]
Total loans modified in last twelve months	90
Residential \| Residential - Home Equity \| Past Due 30-89 Days
Financing Receivable, Past Due [Line Items]
Total loans modified in last twelve months	0
Residential \| Residential - Home Equity \| Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans modified in last twelve months	0
Commercial \| Real estate:
Financing Receivable, Past Due [Line Items]
Total loans modified in last twelve months	1,559
Nonaccrual	1,031
Commercial \| Real estate: \| Current Loans
Financing Receivable, Past Due [Line Items]
Total loans modified in last twelve months	528
Commercial \| Real estate: \| Past Due 30-89 Days
Financing Receivable, Past Due [Line Items]
Total loans modified in last twelve months	0
Commercial \| Real estate: \| Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans modified in last twelve months	0
Commercial and Industrial
Financing Receivable, Past Due [Line Items]
Total loans modified in last twelve months	3,164
Nonaccrual	442
Commercial and Industrial \| Current Loans
Financing Receivable, Past Due [Line Items]
Total loans modified in last twelve months	2,722
Commercial and Industrial \| Past Due 30-89 Days
Financing Receivable, Past Due [Line Items]
Total loans modified in last twelve months	0
Commercial and Industrial \| Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans modified in last twelve months	$ 0

Leases - Schedule of Minimum Payments for Operating Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Amounts due in:
2025	$ 1,569
2026	1,933
2027	626
2028	449
2029	441
2030 and thereafter	1,188
Total future lease payments	6,206
Discount of cash flows	(721)
Present value of net future lease payments	$ 5,485	$ 5,872

Acquisition (Tables)

3 Months Ended

Mar. 31, 2025

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the consideration paid for IFH and the amounts of the assets acquired and liabilities assumed at the October 1, 2024 acquisition date:


Purchase Price Consideration and Net Assets Acquired
(dollars in thousands, except shares issued and price per share)
Common share consideration
Shares of common stock issued	2,631,847
Price per share on September 30, 2024	$	25.71
Common stock consideration	$	67,665
Cash consideration	12,652
Consideration for other equity instruments	3,199
Purchase price consideration	$	83,516

Assets
Cash and cash equivalents	$	77,822
Investment securities available-for-sale	1,019
Loans held for sale	41,723
Portfolio loans held for investment, net	362,180
Premises and equipment, net	7,104
Customer list intangible	12,200
Trade name intangible	2,100
Core deposits intangible	1,779
Loan servicing assets	4,515
Deferred tax asset	9,324
Bank owned life insurance	4,779
Other assets	13,731
Total assets acquired	$	538,276

Liabilities
Deposits	$	458,952
Other liabilities	16,934
Total liabilities assumed	$	475,886

Total identifiable net assets	$	62,390

Goodwill	$	21,126

Subsequent Events (Details)	1 Months Ended
Subsequent Events (Details)	Apr. 30, 2025 $ / shares
Subsequent Event
Subsequent Event [Line Items]
Quarterly dividend of common stock declared (in dollar per share)	$ 0.10

Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Statement of Comprehensive Income [Abstract]
Net income	$ 13,932	$ 6,562
Other comprehensive income (loss):
Unrealized gain (loss) on investment securities available-for-sale	2,991	(589)
Income tax (expense) benefit relating to the items above	(729)	52
Other comprehensive income (loss)	2,262	(537)
Comprehensive income	$ 16,194	$ 6,025

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income, attributable to parent entity. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Portfolio Loans Receivable and Allowance for Credit Losses - Schedule of Changes and Allocation of Allowance for Credit Losses by Loan Segment Class (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 48,652	$ 28,610
Provision (Release of Provision) for Credit Losses	2,246	2,727
Charge-Offs	(2,445)	(2,091)
Recoveries	1	104
Balance at end of period	48,454	29,350
Commercial and Industrial
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	16,377	4,406
Provision (Release of Provision) for Credit Losses	(542)	(306)
Charge-Offs	(147)	(98)
Recoveries	0	0
Balance at end of period	15,688	4,002
Real estate: \| Residential
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	6,945	5,518
Provision (Release of Provision) for Credit Losses	(614)	633
Charge-Offs	(1)	(225)
Recoveries	1	0
Balance at end of period	6,331	5,926
Real estate: \| Commercial
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	16,041	10,316
Provision (Release of Provision) for Credit Losses	1,229	807
Charge-Offs	0	0
Recoveries	0	0
Balance at end of period	17,270	11,123
Real estate: \| Construction
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	2,973	2,271
Provision (Release of Provision) for Credit Losses	288	28
Charge-Offs	0	0
Recoveries	0	0
Balance at end of period	3,261	2,299
Credit card \| Consumer
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	6,301	6,087
Provision (Release of Provision) for Credit Losses	1,894	1,567
Charge-Offs	(2,297)	(1,768)
Recoveries	0	104
Balance at end of period	5,898	5,990
Other consumer \| Consumer
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	15	12
Provision (Release of Provision) for Credit Losses	(9)	(2)
Charge-Offs	0	0
Recoveries	0	0
Balance at end of period	$ 6	$ 10

Loan Servicing (Tables)

3 Months Ended

Mar. 31, 2025

Transfers and Servicing [Abstract]

Schedule of Activity for Loan Servicing Rights and the related Valuation Allowance

Activity for loan servicing rights and the related valuation allowance as follows for the periods presented:


Loan servicing rights:
(in thousands)	March 31, 2025		December 31, 2024
Balance at beginning of period	$	5,511	$	—
Additions	110		5,096

Other changes in fair value	(3,377)		415
Balance at end of period	$	2,244	$	5,511

Fair Value - Narrative (Details) - Fair Value, Measurements, Nonrecurring - Level 3 - USD ($)	Mar. 31, 2025	Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually evaluated loans for credit loss, net	$ 36,510,000	$ 25,521,000
Foreclosed real estate	0	0
Valuation Technique, Discounted Cash Flow
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually evaluated loans for credit loss, net	46,600,000	34,900,000
Specific reserves	$ 10,100,000	$ 9,300,000

Goodwill and Intangible Assets - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amount	$ 16,079	$ 16,079
Accumulated Amortization	(523)	(262)
Net Carrying Amount	15,556	15,817
Customer list intangible
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amount	12,200	12,200
Accumulated Amortization	(364)	(188)
Net Carrying Amount	11,836	12,012
Trade name intangible
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amount	2,100	2,100
Accumulated Amortization	(75)	(40)
Net Carrying Amount	2,025	2,060
Core deposits intangible
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amount	1,779	1,779
Accumulated Amortization	(84)	(34)
Net Carrying Amount	$ 1,695	$ 1,745

Acquisition

3 Months Ended

Mar. 31, 2025

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Acquisition

Note 2 - Acquisition

Acquisition of Integrated Financial Holdings, Inc.

On October 1, 2024, the Company completed its acquisition of Integrated Financial Holdings, Inc. (“IFH”). IFH merged with and into the Company, with the Company continuing as the surviving corporation in the acquisition. Immediately following the acquisition, West Town Bank & Trust, merged with and into Capital Bank, with Capital Bank as the surviving bank. During the first quarter of 2025, the Company successfully converted IFH’s banking systems and operations onto Capital Bank’s platforms.

The following table summarizes the consideration paid for IFH and the amounts of the assets acquired and liabilities assumed at the October 1, 2024 acquisition date:


Purchase Price Consideration and Net Assets Acquired
(dollars in thousands, except shares issued and price per share)
Common share consideration
Shares of common stock issued	2,631,847
Price per share on September 30, 2024	$	25.71
Common stock consideration	$	67,665
Cash consideration	12,652
Consideration for other equity instruments	3,199
Purchase price consideration	$	83,516

Assets
Cash and cash equivalents	$	77,822
Investment securities available-for-sale	1,019
Loans held for sale	41,723
Portfolio loans held for investment, net	362,180
Premises and equipment, net	7,104
Customer list intangible	12,200
Trade name intangible	2,100
Core deposits intangible	1,779
Loan servicing assets	4,515
Deferred tax asset	9,324
Bank owned life insurance	4,779
Other assets	13,731
Total assets acquired	$	538,276

Liabilities
Deposits	$	458,952
Other liabilities	16,934
Total liabilities assumed	$	475,886

Total identifiable net assets	$	62,390

Goodwill	$	21,126

The assets purchased and liabilities assumed in the acquisition were recorded at their estimated fair values at the time of closing, subject to refinement for up to one year after the closing date. During the

first quarter of 2025, the Company revised the estimate of adjusted servicing assets and other liabilities resulting in a $3.0 million increase in goodwill at March 31, 2025 as compared to December 31, 2024. The Company’s acquisition of IFH is discussed in detail in Note 2 “Business Combination” in the “Notes to the Consolidated Financial Statements” contained in Part II. Item 8 "Financial Statements and Supplementary Data" of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

During the three months ended March 31, 2025 and 2024, the Company incurred merger-related expenses related to the acquisition of IFH totaling $1.3 million and $0.7 million, respectively.

Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The change in goodwill during the periods ended March 31, 2025 and December 31, 2024 is as follows:


(in thousands)	March 31, 2025		December 31, 2024
Balance at beginning of period	$	21,126	$	—
Acquired goodwill	—		21,126
Measurement period adjustment	2,959		—
Balance at end of period	$	24,085	$	21,126

Schedule of Acquired Finite-Lived Intangible Assets by Major Class

Acquired amortizing intangible assets were as follows for the period presented:


	March 31, 2025						December 31, 2024
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortized intangible assets:
Customer list intangible	$	12,200	$	(364)	$	11,836	$	12,200	$	(188)	$	12,012
Trade name intangible	2,100		(75)		2,025		2,100		(40)		2,060
Core deposits intangible	1,779		(84)		1,695		1,779		(34)		1,745
Total amortized intangible assets	$	16,079	$	(523)	$	15,556	$	16,079	$	(262)	$	15,817

Schedule of Future Amortization Expense

At March 31, 2025, scheduled amortization of the intangible assets for each of the next five years is as follows:


(in thousands)

2025	$	785
2026	1,043
2027	1,038
2028	1,033
2029	1,026
Thereafter	10,631
Total	$	15,556

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1A

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-2

+ Details

Portfolio Loans Receivable and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2025

Receivables [Abstract]

Schedule of Major Categories of Total Loans Outstanding

The following is a summary of the major categories of total loans outstanding:



	March 31, 2025				December 31, 2024
(in thousands)	Amount		Percent		Amount		Percent
Real estate:
Residential	$	693,597	26	%	$	688,552	26	%
Commercial	931,675		35	%	943,019		36	%
Construction	343,280		13	%	321,252		12	%
Commercial and Industrial	594,331		22	%	554,550		21	%
Credit card, net of reserve(1)	118,709		4	%	127,766		5	%
Other consumer	2,200		—	%	2,089		—	%
Portfolio loans receivable, gross	2,683,792		100	%	2,637,228		100	%
Deferred origination fees, net	(5,386)				(7,065)
Allowance for credit losses	(48,454)				(48,652)
Portfolio loans receivable, net	$	2,629,952			$	2,581,511

_____________

(1) Credit card loans are presented net of reserve for interest and fees.

Schedule of Changes and Allocation of Allowance for Credit Losses by Loan Segment Class

The following tables set forth the changes in the ACL and an allocation of the ACL by loan segment class for the three months ended March 31, 2025 and March 31, 2024.


(in thousands)	Beginning Balance		Provision (Release of Provision) for Credit Losses		Charge-Offs		Recoveries		Ending Balance
Three Months Ended March 31, 2025
Real estate:
Residential	$	6,945	$	(614)	$	(1)	$	1	$	6,331
Commercial	16,041		1,229		—		—		17,270
Construction	2,973		288		—		—		3,261
Commercial and Industrial	16,377		(542)		(147)		—		15,688
Credit card	6,301		1,894		(2,297)		—		5,898
Other consumer	15		(9)		—		—		6
Total	$	48,652	$	2,246	$	(2,445)	$	1	$	48,454













Three Months Ended March 31, 2024
Real estate:
Residential	$	5,518	$	633	$	(225)	$	—	$	5,926
Commercial	10,316		807		—		—		11,123
Construction	2,271		28		—		—		2,299
Commercial and Industrial	4,406		(306)		(98)		—		4,002
Credit card	6,087		1,567		(1,768)		104		5,990
Other consumer	12		(2)		—		—		10
Total	$	28,610	$	2,727	$	(2,091)	$	104	$	29,350

Schedule of Past Due Loans Segregated by Age and Class of Loans

Past due loans, segregated by age and class of loans, as of March 31, 2025 and December 31, 2024 were as follows:


Portfolio Loans Past Due
	Loans 30-59 Days Past Due		Loans 60-89 Days Past Due		Loans 90 or More Days Past Due		Total Past Due Loans		Current Loans		Total Portfolio Loans		Accruing Loans 90 or More Days Past Due		Nonaccrual Loans
(in thousands)
March 31, 2025
Real estate:
Residential	$	5,111	$	914	$	6,221	$	12,246	$	681,351	$	693,597	$	63	$	9,374
Commercial	8,753		817		18,785		28,355		903,320		931,675		—		21,441
Construction	5,777		—		4,275		10,052		333,228		343,280		—		4,268
Commercial and Industrial	14,181		1,811		6,241		22,233		572,098		594,331		—		7,851
Credit card	5,767		5,040		1,504		12,311		106,398		118,709		1,504		—
Other consumer	—		—		—		—		2,200		2,200		—		—
Total	$	39,589	$	8,582	$	37,026	$	85,197	$	2,598,595	$	2,683,792	$	1,567	$	42,934



	Loans 30-59 Days Past Due		Loans 60-89 Days Past Due		Loans 90 or More Days Past Due		Total Past Due Loans		Current Loans		Total Portfolio Loans		Accruing Loans 90 or More Days Past Due		Nonaccrual Loans

December 31, 2024

Real estate:
Residential	$	1,656	$	4,913	$	6,644	$	13,213	$	675,339	$	688,552	$	—	$	8,652
Commercial	4,957		7,570		7,001		19,528		923,491		943,019		100		14,312
Construction	1,000		415		4,309		5,724		315,528		321,252		—		4,309
Commercial and Industrial	10,981		1,245		1,049		13,275		541,275		554,550		—		2,968
Credit card	6,923		6,561		1,544		15,028		112,738		127,766		1,544		—
Other consumer	—		—		—		—		2,089		2,089		—		—
Total	$	25,517	$	20,704	$	20,547	$	66,768	$	2,570,460	$	2,637,228	$	1,644	$	30,241

Schedule of Nonaccrual Loans

The following presents the nonaccrual loans as of March 31, 2025 and December 31, 2024:


	March 31, 2025
	Nonaccrual with No Allowance for Credit Loss		Nonaccrual with an Allowance for Credit Loss		Total Nonaccrual Loans		Interest Recognized on Nonaccrual Loans
(in thousands)

Real estate:
Residential	$	9,328	$	46	$	9,374	$	138
Commercial	16,900		4,541		21,441		103
Construction	4,268		—		4,268		315
Commercial and Industrial	2,384		5,467		7,851		119


Total	$	32,880	$	10,054	$	42,934	$	675

	December 31, 2024
	Nonaccrual with No Allowance for Credit Loss		Nonaccrual with an Allowance for Credit Loss		Total Nonaccrual Loans		Interest Recognized on Nonaccrual Loans


Real estate:
Residential	$	8,055	$	597	$	8,652	$	38
Commercial	3,205		11,107		14,312		122
Construction	4,309		—		4,309		144
Commercial and Industrial	247		2,721		2,968		106
Total	$	15,816	$	14,425	$	30,241	$	410


Collateral dependent loans amortized cost
(in thousands)	March 31, 2025		December 31, 2024
Real estate:
Residential	$	8,094	$	8,780
Commercial	19,475		14,803
Construction	4,268		4,301
Commercial and Industrial	10,755		6,551

Total	$	42,592	$	34,435

Schedule of Loan Modifications to Borrowers Experiencing Financial Difficulty

The Company made 12 loan modifications on loans to borrowers experiencing financial difficulty during the three months ended March 31, 2025 as follows:


Modifications
(in thousands)	Amortized Cost Basis		% of Total Loan Type		Financial Effect
Real estate:
Residential	$	806	0.116	%	Payment recast based on new extended maturity to lower payments on one loan; Reduced contractual interest rate from 8.375% to 6.375% on one loan.
Residential - Home Equity	90		0.159	%	Reduced contractual interest rate from 10.490% to 6.375% on one loan.
Commercial	665		0.073	%	Provided 3 months and 12 months payment deferral on two different loans through the Bank’s standard deferral program. The deferred payments were added to the end of the original loan terms.
Commercial and Industrial	2,523		0.425	%	Provided 9 months payment deferral on two loans and 12 months payment deferral on two loans through the Bank’s standard deferral program. The deferred payments were added to the end of the original loan terms; Extended maturity date of one loan which reduced monthly payment amount for the borrower; Reduced contractual floating interest rate based on Prime to 6.000% fixed rate and extended terms for 60 months on one loan; Reduced contractual floating interest rate based on Prime to 6.000% fixed rate, extended terms for 60 months and provided 3 months payment deferral on one loan with the deferred payments added to the end of the original loan terms.

Total	$	4,084

Schedule of Financing Receivable Modified Past Due

The following table presents the payment status of loans that have been modified in the last twelve months:


	March 31, 2025
				Past Due		Past Due
(in thousands)	Current			30-89 Days		90 Days or More		Nonaccrual		Total
Real estate:
Residential	$	806		$	—	$	—	$	—	$	806
Residential - Home Equity	90			—		—		—		90
Commercial	528			—		—		1,031		1,559
Commercial and Industrial	2,722			—		—		442		3,164
	$	4,146	4146000	$	—	$	—	$	1,473	$	5,619

Schedule of Loans by Credit Quality Indicators and Gross Charge-Offs

The following table presents the balances of classified loans based on the most recent credit quality indicator analysis. Classified loans include Special Mention, Substandard and Doubtful loans. Pass classified loans include loans graded exceptional, very good, good, satisfactory, and pass/watch. Credit card loans are ungraded as they are not individually graded. Charge-offs presented represent gross charge-offs recognized in the current period:


March 31, 2025	Term Loans by Origination Year
(in thousands)	2025		2024		2023		2022		2021		Prior		Revolving		Total
Residential – Real estate
Pass	$	25,022	$	135,833	$	114,820	$	119,827	$	69,801	$	214,030	$	—	$	679,333
Special Mention	—		—		1,967		2,051		1,237		2,084		—		7,339
Substandard	—		—		—		33		322		6,570		—		6,925
Doubtful	—		—		—		—		—		—		—		—
Total	25,022		135,833		116,787		121,911		71,360		222,684		—		693,597
Commercial – Real estate
Pass	37,623		223,818		66,036		157,792		136,190		260,077		—		881,536
Special Mention	—		—		2,255		17,673		5,918		2,534		—		28,380
Substandard	—		—		2,693		3,474		—		15,592		—		21,759
Doubtful	—		—		—		—		—		—		—		—
Total	37,623		223,818		70,984		178,939		142,108		278,203		—		931,675
Construction – Real estate
Pass	25,047		109,287		115,953		46,978		20,952		19,788		—		338,005
Special Mention	—		—		1,000		—		—		—		—		1,000
Substandard	—		—		—		—		—		4,275		—		4,275
Doubtful	—		—		—		—		—		—		—		—
Total	25,047		109,287		116,953		46,978		20,952		24,063		—		343,280
Commercial and Industrial
Pass	34,280		167,510		121,596		85,623		39,837		106,620		—		555,466
Special Mention	—		222		15,702		1,969		201		8,047		—		26,141
Substandard	—		273		4,232		847		1,343		6,029		—		12,724
Doubtful	—		—		—		—		—		—		—		—
Total	34,280		168,005		141,530		88,439		41,381		120,696		—		594,331
Other consumer
Pass	—		1,221		—		67		82		830		—		2,200
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total	—		1,221		—		67		82		830		—		2,200
Credit card
Ungraded	—		—		—		—		—		—		118,709		118,709
Portfolio loans receivable, gross	$	121,972	$	638,164	$	446,254	$	436,334	$	275,883	$	646,476	$	118,709	$	2,683,792


March 31, 2025
(in thousands)	2025		2024		2023		2022		2021		Prior		Revolving		Total
Gross Charge-Offs
Residential real estate	$	—	$	—	$	—	$	—	$	—	$	1	$	—	$	1
Commercial real estate	—		—		—		—		—		—		—		—
Commercial and Industrial	—		—		—		—		—		147		—		147
Credit card	—		—		—		—		—		—		2,297		2,297
Total	$	—	$	—	$	—	$	—	$	—	$	148	$	2,297	$	2,445


December 31, 2024	Term Loans by Origination Year
(in thousands)	2024		2023		2022		2021		2020		Prior		Revolving		Total
Residential – Real estate
Pass	$	155,867	$	129,639	$	122,203	$	76,906	$	69,647	$	117,272	$	—	$	671,534
Special Mention	—		—		2,065		1,242		3,604		—		—		6,911
Substandard	—		—		—		3,422		189		6,496		—		10,107
Doubtful	—		—		—		—		—		—		—		—
Total	155,867		129,639		124,268		81,570		73,440		123,768		—		688,552
Commercial – Real estate
Pass	235,929		61,372		170,611		146,642		92,038		207,631		—		914,223
Special Mention	—		2,300		10,747		5,052		—		788		—		18,887
Substandard	—		—		7,558		—		320		2,031		—		9,909
Doubtful	—		—		—		—		—		—		—		—
Total	235,929		63,672		188,916		151,694		92,358		210,450		—		943,019
Construction – Real estate
Pass	98,942		129,202		46,532		20,634		15,458		6,175		—		316,943
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		2,252		2,057		—		4,309
Doubtful	—		—		—		—		—		—		—		—
Total	98,942		129,202		46,532		20,634		17,710		8,232		—		321,252
Commercial and Industrial
Pass	129,043		130,647		117,346		42,747		21,356		107,953		—		549,092
Special Mention	232		—		489		—		—		270		—		991
Substandard	—		209		712		205		3,239		102		—		4,467
Doubtful	—		—		—		—		—		—		—		—
Total	129,275		130,856		118,547		42,952		24,595		108,325		—		554,550
Other consumer
Pass	1,226		278		73		95		76		341		—		2,089
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total	1,226		278		73		95		76		341		—		2,089
Credit card
Ungraded	—		—		—		—		—		—		127,766		127,766
Portfolio loans receivable, gross	$	621,239	$	453,647	$	478,336	$	296,945	$	208,179	$	451,116	$	127,766	$	2,637,228


December 31, 2024
(in thousands)	2024		2023		2022		2021		2020		Prior		Revolving		Total
Gross Charge-Offs
Residential real estate	$	—	$	—	$	—	$	—	$	—	$	907	$	—	$	907
Commercial real estate	—		—		570		—		—		—		—		570
Commercial and Industrial	84		80		306		—		—		136		—		606
Credit card	—		—		—		—		—		—		7,145		7,145
Total	$	84	$	80	$	876	$	—	$	—	$	1,043	$	7,145	$	9,228

Schedule of Outstanding Loan Commitments

Outstanding loan commitments were as follows:


(in thousands)	March 31, 2025		December 31, 2024
Unused lines of credit
Real Estate:
Residential	$	21,076	$	20,996
Residential - Home Equity	45,441		46,900
Commercial	48,469		44,201
Construction	85,377		85,984
Commercial and Industrial	67,495		79,961
Credit card(1)	135,112		124,732
Other consumer	238		255
Total	$	403,208	$	403,029



Letters of credit	$	3,122	$	3,122

_______________

(1)Outstanding loan commitments in the credit card portfolio include $106.5 million and $97.2 million in secured and partially secured balances as of March 31, 2025 and December 31, 2024, respectively.

Schedule of Credit Losses for Financing Receivables

Activity for this account is as follows for the periods presented:


	Three months ended
(in thousands)	March 31, 2025		March 31, 2024
Balance at beginning of period	$	1,191	$	806

Provision for credit losses on unfunded commitments	—		142


Balance at end of period	$	1,191	$	948

Activity in this reserve is as follows for the periods presented:


	Three months ended
(in thousands)	March 31, 2025		March 31, 2024
Balance at beginning of period	$	2,260	$	985
Provision for mortgage loan put-back reserve	16		13


Balance at end of period	$	2,276	$	998

Portfolio Loans Receivable and Allowance for Credit Losses

3 Months Ended

Mar. 31, 2025

Receivables [Abstract]

Portfolio Loans Receivable and Allowance for Credit Losses

Note 5 - Portfolio Loans Receivable and Allowance for Credit Losses

The following is a summary of the major categories of total loans outstanding:



	March 31, 2025				December 31, 2024
(in thousands)	Amount		Percent		Amount		Percent
Real estate:
Residential	$	693,597	26	%	$	688,552	26	%
Commercial	931,675		35	%	943,019		36	%
Construction	343,280		13	%	321,252		12	%
Commercial and Industrial	594,331		22	%	554,550		21	%
Credit card, net of reserve(1)	118,709		4	%	127,766		5	%
Other consumer	2,200		—	%	2,089		—	%
Portfolio loans receivable, gross	2,683,792		100	%	2,637,228		100	%
Deferred origination fees, net	(5,386)				(7,065)
Allowance for credit losses	(48,454)				(48,652)
Portfolio loans receivable, net	$	2,629,952			$	2,581,511

_____________

(1) Credit card loans are presented net of reserve for interest and fees.

The following tables set forth the changes in the ACL and an allocation of the ACL by loan segment class for the three months ended March 31, 2025 and March 31, 2024.


(in thousands)	Beginning Balance		Provision (Release of Provision) for Credit Losses		Charge-Offs		Recoveries		Ending Balance
Three Months Ended March 31, 2025
Real estate:
Residential	$	6,945	$	(614)	$	(1)	$	1	$	6,331
Commercial	16,041		1,229		—		—		17,270
Construction	2,973		288		—		—		3,261
Commercial and Industrial	16,377		(542)		(147)		—		15,688
Credit card	6,301		1,894		(2,297)		—		5,898
Other consumer	15		(9)		—		—		6
Total	$	48,652	$	2,246	$	(2,445)	$	1	$	48,454













Three Months Ended March 31, 2024
Real estate:
Residential	$	5,518	$	633	$	(225)	$	—	$	5,926
Commercial	10,316		807		—		—		11,123
Construction	2,271		28		—		—		2,299
Commercial and Industrial	4,406		(306)		(98)		—		4,002
Credit card	6,087		1,567		(1,768)		104		5,990
Other consumer	12		(2)		—		—		10
Total	$	28,610	$	2,727	$	(2,091)	$	104	$	29,350

Past due loans, segregated by age and class of loans, as of March 31, 2025 and December 31, 2024 were as follows:


Portfolio Loans Past Due
	Loans 30-59 Days Past Due		Loans 60-89 Days Past Due		Loans 90 or More Days Past Due		Total Past Due Loans		Current Loans		Total Portfolio Loans		Accruing Loans 90 or More Days Past Due		Nonaccrual Loans
(in thousands)
March 31, 2025
Real estate:
Residential	$	5,111	$	914	$	6,221	$	12,246	$	681,351	$	693,597	$	63	$	9,374
Commercial	8,753		817		18,785		28,355		903,320		931,675		—		21,441
Construction	5,777		—		4,275		10,052		333,228		343,280		—		4,268
Commercial and Industrial	14,181		1,811		6,241		22,233		572,098		594,331		—		7,851
Credit card	5,767		5,040		1,504		12,311		106,398		118,709		1,504		—
Other consumer	—		—		—		—		2,200		2,200		—		—
Total	$	39,589	$	8,582	$	37,026	$	85,197	$	2,598,595	$	2,683,792	$	1,567	$	42,934



	Loans 30-59 Days Past Due		Loans 60-89 Days Past Due		Loans 90 or More Days Past Due		Total Past Due Loans		Current Loans		Total Portfolio Loans		Accruing Loans 90 or More Days Past Due		Nonaccrual Loans

December 31, 2024

Real estate:
Residential	$	1,656	$	4,913	$	6,644	$	13,213	$	675,339	$	688,552	$	—	$	8,652
Commercial	4,957		7,570		7,001		19,528		923,491		943,019		100		14,312
Construction	1,000		415		4,309		5,724		315,528		321,252		—		4,309
Commercial and Industrial	10,981		1,245		1,049		13,275		541,275		554,550		—		2,968
Credit card	6,923		6,561		1,544		15,028		112,738		127,766		1,544		—
Other consumer	—		—		—		—		2,089		2,089		—		—
Total	$	25,517	$	20,704	$	20,547	$	66,768	$	2,570,460	$	2,637,228	$	1,644	$	30,241

There were $9.0 million and $7.2 million of loans secured by one-to-four family residential properties in the process of foreclosure as of March 31, 2025 and December 31, 2024, respectively.

The following presents the nonaccrual loans as of March 31, 2025 and December 31, 2024:


	March 31, 2025
	Nonaccrual with No Allowance for Credit Loss		Nonaccrual with an Allowance for Credit Loss		Total Nonaccrual Loans		Interest Recognized on Nonaccrual Loans
(in thousands)

Real estate:
Residential	$	9,328	$	46	$	9,374	$	138
Commercial	16,900		4,541		21,441		103
Construction	4,268		—		4,268		315
Commercial and Industrial	2,384		5,467		7,851		119


Total	$	32,880	$	10,054	$	42,934	$	675

	December 31, 2024
	Nonaccrual with No Allowance for Credit Loss		Nonaccrual with an Allowance for Credit Loss		Total Nonaccrual Loans		Interest Recognized on Nonaccrual Loans


Real estate:
Residential	$	8,055	$	597	$	8,652	$	38
Commercial	3,205		11,107		14,312		122
Construction	4,309		—		4,309		144
Commercial and Industrial	247		2,721		2,968		106
Total	$	15,816	$	14,425	$	30,241	$	410

The Company has certain loans for which repayment is dependent upon the operation or sale of collateral, as the borrower is experiencing financial difficulty. The underlying collateral can vary based upon the type of loan. The following provides more detail about the types of collateral that secure collateral dependent loans:

•Residential real estate loans are primarily secured by owner-occupied primary residences and, to a lesser extent, investor-owned residences.

•Commercial real estate loans can be secured by either owner-occupied commercial real estate or non-owner-occupied investment commercial real estate. Typically, owner-occupied commercial real estate loans are secured by office buildings, warehouses, manufacturing facilities and other commercial and industrial properties occupied by operating companies. Non-owner-occupied commercial real estate loans are generally secured by office buildings and complexes, retail facilities, multifamily complexes, land under development and/or industrial properties, as well as other commercial or industrial real estate.

•Construction loans are typically secured by owner-occupied commercial real estate or non-owner-occupied investment real estate. Typically, owner-occupied construction loans are secured by office buildings, warehouses, manufacturing facilities, and other commercial and industrial properties that are in process of construction. Non-owner-occupied commercial construction loans are generally secured by office buildings and complexes, multi-family complexes, land under development and/or other commercial and industrial real estate in process of construction.

•Commercial and industrial loans are generally secured by equipment, inventory, accounts receivable and/or other commercial property.


Collateral dependent loans amortized cost
(in thousands)	March 31, 2025		December 31, 2024
Real estate:
Residential	$	8,094	$	8,780
Commercial	19,475		14,803
Construction	4,268		4,301
Commercial and Industrial	10,755		6,551

Total	$	42,592	$	34,435

Of the collateral dependent loans as of March 31, 2025, a specific reserve of $46 thousand, $4.5 million and $5.1 million was assessed for residential real estate, commercial real estate and commercial and industrial loans, respectively. Of the collateral dependent loans as of December 31, 2024, a specific reserve of $147 thousand, $4.1 million and $4.8 million was assessed for residential real estate, commercial real estate and commercial and industrial loans.

The Company made 12 loan modifications on loans to borrowers experiencing financial difficulty during the three months ended March 31, 2025 as follows:


Modifications
(in thousands)	Amortized Cost Basis		% of Total Loan Type		Financial Effect
Real estate:
Residential	$	806	0.116	%	Payment recast based on new extended maturity to lower payments on one loan; Reduced contractual interest rate from 8.375% to 6.375% on one loan.
Residential - Home Equity	90		0.159	%	Reduced contractual interest rate from 10.490% to 6.375% on one loan.
Commercial	665		0.073	%	Provided 3 months and 12 months payment deferral on two different loans through the Bank’s standard deferral program. The deferred payments were added to the end of the original loan terms.
Commercial and Industrial	2,523		0.425	%	Provided 9 months payment deferral on two loans and 12 months payment deferral on two loans through the Bank’s standard deferral program. The deferred payments were added to the end of the original loan terms; Extended maturity date of one loan which reduced monthly payment amount for the borrower; Reduced contractual floating interest rate based on Prime to 6.000% fixed rate and extended terms for 60 months on one loan; Reduced contractual floating interest rate based on Prime to 6.000% fixed rate, extended terms for 60 months and provided 3 months payment deferral on one loan with the deferred payments added to the end of the original loan terms.

Total	$	4,084

The following table presents the payment status of loans that have been modified in the last twelve months:


	March 31, 2025
				Past Due		Past Due
(in thousands)	Current			30-89 Days		90 Days or More		Nonaccrual		Total
Real estate:
Residential	$	806		$	—	$	—	$	—	$	806
Residential - Home Equity	90			—		—		—		90
Commercial	528			—		—		1,031		1,559
Commercial and Industrial	2,722			—		—		442		3,164
	$	4,146	4146000	$	—	$	—	$	1,473	$	5,619

The Company did not make any modifications on loans to borrowers experiencing financial difficulty during the three months ended March 31, 2024.

Credit quality indicators

As part of the ongoing monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to the risk grade of loans, the level of classified loans, net charge-offs, nonperforming loans, and general economic conditions in the Company’s market. From a credit risk standpoint, the Company utilizes a risk grading matrix to assign a risk grade to each of its loans. The classifications of loans reflect a judgment about the risk of expected credit loss associated with each loan. Credit quality indicators are reviewed and adjusted regularly to account for the degree of risk and expected credit loss that the Company believes to be appropriate for each financial asset.

A description of the general risk ratings are described as follows:

Pass

Loans characterized as pass includes loans graded exceptional, very good, good, satisfactory and pass/watch. The Company believes that there is a low likelihood of credit deterioration related to those loans that are considered pass.

Special mention

A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. Special mention loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification.

Borrowers may exhibit poor liquidity and leverage positions resulting from generally negative cash flow or negative trends in earnings. Access to alternative financing may be limited to finance companies for business borrowers and may be unavailable for commercial real estate borrowers.

Substandard

A substandard loan is inadequately protected by the current financial condition and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Borrowers may exhibit recent or unexpected unprofitable operations, an inadequate debt service coverage ratio, or marginal liquidity and capitalization. These loans require more intense supervision by Company management.

Doubtful

A doubtful loan has all the weaknesses associated with a substandard loan with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

Ungraded

Ungraded loans represent credit card loans not included in the individual credit grading process due to the borrower type. The credit quality indicator for credit card loans is based on the delinquency status of the borrower as of the date presented.


March 31, 2025	Term Loans by Origination Year
(in thousands)	2025		2024		2023		2022		2021		Prior		Revolving		Total
Residential – Real estate
Pass	$	25,022	$	135,833	$	114,820	$	119,827	$	69,801	$	214,030	$	—	$	679,333
Special Mention	—		—		1,967		2,051		1,237		2,084		—		7,339
Substandard	—		—		—		33		322		6,570		—		6,925
Doubtful	—		—		—		—		—		—		—		—
Total	25,022		135,833		116,787		121,911		71,360		222,684		—		693,597
Commercial – Real estate
Pass	37,623		223,818		66,036		157,792		136,190		260,077		—		881,536
Special Mention	—		—		2,255		17,673		5,918		2,534		—		28,380
Substandard	—		—		2,693		3,474		—		15,592		—		21,759
Doubtful	—		—		—		—		—		—		—		—
Total	37,623		223,818		70,984		178,939		142,108		278,203		—		931,675
Construction – Real estate
Pass	25,047		109,287		115,953		46,978		20,952		19,788		—		338,005
Special Mention	—		—		1,000		—		—		—		—		1,000
Substandard	—		—		—		—		—		4,275		—		4,275
Doubtful	—		—		—		—		—		—		—		—
Total	25,047		109,287		116,953		46,978		20,952		24,063		—		343,280
Commercial and Industrial
Pass	34,280		167,510		121,596		85,623		39,837		106,620		—		555,466
Special Mention	—		222		15,702		1,969		201		8,047		—		26,141
Substandard	—		273		4,232		847		1,343		6,029		—		12,724
Doubtful	—		—		—		—		—		—		—		—
Total	34,280		168,005		141,530		88,439		41,381		120,696		—		594,331
Other consumer
Pass	—		1,221		—		67		82		830		—		2,200
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total	—		1,221		—		67		82		830		—		2,200
Credit card
Ungraded	—		—		—		—		—		—		118,709		118,709
Portfolio loans receivable, gross	$	121,972	$	638,164	$	446,254	$	436,334	$	275,883	$	646,476	$	118,709	$	2,683,792


March 31, 2025
(in thousands)	2025		2024		2023		2022		2021		Prior		Revolving		Total
Gross Charge-Offs
Residential real estate	$	—	$	—	$	—	$	—	$	—	$	1	$	—	$	1
Commercial real estate	—		—		—		—		—		—		—		—
Commercial and Industrial	—		—		—		—		—		147		—		147
Credit card	—		—		—		—		—		—		2,297		2,297
Total	$	—	$	—	$	—	$	—	$	—	$	148	$	2,297	$	2,445


December 31, 2024	Term Loans by Origination Year
(in thousands)	2024		2023		2022		2021		2020		Prior		Revolving		Total
Residential – Real estate
Pass	$	155,867	$	129,639	$	122,203	$	76,906	$	69,647	$	117,272	$	—	$	671,534
Special Mention	—		—		2,065		1,242		3,604		—		—		6,911
Substandard	—		—		—		3,422		189		6,496		—		10,107
Doubtful	—		—		—		—		—		—		—		—
Total	155,867		129,639		124,268		81,570		73,440		123,768		—		688,552
Commercial – Real estate
Pass	235,929		61,372		170,611		146,642		92,038		207,631		—		914,223
Special Mention	—		2,300		10,747		5,052		—		788		—		18,887
Substandard	—		—		7,558		—		320		2,031		—		9,909
Doubtful	—		—		—		—		—		—		—		—
Total	235,929		63,672		188,916		151,694		92,358		210,450		—		943,019
Construction – Real estate
Pass	98,942		129,202		46,532		20,634		15,458		6,175		—		316,943
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		2,252		2,057		—		4,309
Doubtful	—		—		—		—		—		—		—		—
Total	98,942		129,202		46,532		20,634		17,710		8,232		—		321,252
Commercial and Industrial
Pass	129,043		130,647		117,346		42,747		21,356		107,953		—		549,092
Special Mention	232		—		489		—		—		270		—		991
Substandard	—		209		712		205		3,239		102		—		4,467
Doubtful	—		—		—		—		—		—		—		—
Total	129,275		130,856		118,547		42,952		24,595		108,325		—		554,550
Other consumer
Pass	1,226		278		73		95		76		341		—		2,089
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total	1,226		278		73		95		76		341		—		2,089
Credit card
Ungraded	—		—		—		—		—		—		127,766		127,766
Portfolio loans receivable, gross	$	621,239	$	453,647	$	478,336	$	296,945	$	208,179	$	451,116	$	127,766	$	2,637,228


December 31, 2024
(in thousands)	2024		2023		2022		2021		2020		Prior		Revolving		Total
Gross Charge-Offs
Residential real estate	$	—	$	—	$	—	$	—	$	—	$	907	$	—	$	907
Commercial real estate	—		—		570		—		—		—		—		570
Commercial and Industrial	84		80		306		—		—		136		—		606
Credit card	—		—		—		—		—		—		7,145		7,145
Total	$	84	$	80	$	876	$	—	$	—	$	1,043	$	7,145	$	9,228

Outstanding loan commitments were as follows:


(in thousands)	March 31, 2025		December 31, 2024
Unused lines of credit
Real Estate:
Residential	$	21,076	$	20,996
Residential - Home Equity	45,441		46,900
Commercial	48,469		44,201
Construction	85,377		85,984
Commercial and Industrial	67,495		79,961
Credit card(1)	135,112		124,732
Other consumer	238		255
Total	$	403,208	$	403,029



Letters of credit	$	3,122	$	3,122

_______________

Lines of credit are agreements to lend to a customer as long as there is no violation of any condition of the contract. Lines of credit generally have variable interest rates. Such lines do not represent future cash requirements because it is unlikely that all customers will, at any given time, draw upon their lines in full. Loan commitments generally have variable interest rates, fixed expiration dates, and may require payment of a fee.

The Company's maximum exposure to credit loss in the event of nonperformance by the customer is the contractual amount of the credit commitment. Loan commitments and lines of credit are generally made on the same terms, including with regard to collateral, as outstanding loans. Management is not aware of any accounting loss to be incurred by funding these loan commitments.

The Company maintains an estimated reserve for unfunded commitments and certain off-balance sheet items such as unfunded lines of credit, which is reflected in other liabilities, with increases or decreases in the reserve being charged to or released from operating expense. Activity for this account is as follows for the periods presented:


	Three months ended
(in thousands)	March 31, 2025		March 31, 2024
Balance at beginning of period	$	1,191	$	806

Provision for credit losses on unfunded commitments	—		142


Balance at end of period	$	1,191	$	948

The Company makes representations and warranties that loans sold to investors meet the investors’ program guidelines and that the information provided by the borrowers is accurate and complete. In the event of a default on a loan sold, the investor may have the right to make a claim for losses due to document deficiencies, program non-compliance, early payment default, and fraud or borrower misrepresentations.

The Company maintains a reserve for potential losses on mortgage loans sold, which is reflected in other liabilities, with changes being charged to or released from operating expense. Activity in this reserve is as follows for the periods presented:


	Three months ended
(in thousands)	March 31, 2025		March 31, 2024
Balance at beginning of period	$	2,260	$	985
Provision for mortgage loan put-back reserve	16		13


Balance at end of period	$	2,276	$	998

Portfolio Loans Receivable and Allowance for Credit Losses - Schedule of Major Categories of Total Loans Outstanding (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024	Mar. 31, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, amount	$ 2,683,792	$ 2,637,228
Loans receivable, percent	100.00%	100.00%
Deferred origination fees, net	$ (5,386)	$ (7,065)
Allowance for credit losses	(48,454)	(48,652)	$ (29,350)	$ (28,610)
Total portfolio loans held for investment, net	2,629,952	2,581,511
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, amount	$ 594,331	$ 554,550
Loans receivable, percent	22.00%	21.00%
Allowance for credit losses	$ (15,688)	$ (16,377)	(4,002)	(4,406)
Real estate: \| Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, amount	$ 693,597	$ 688,552
Loans receivable, percent	26.00%	26.00%
Allowance for credit losses	$ (6,331)	$ (6,945)	(5,926)	(5,518)
Real estate: \| Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, amount	$ 931,675	$ 943,019
Loans receivable, percent	35.00%	36.00%
Allowance for credit losses	$ (17,270)	$ (16,041)	(11,123)	(10,316)
Real estate: \| Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, amount	$ 343,280	$ 321,252
Loans receivable, percent	13.00%	12.00%
Allowance for credit losses	$ (3,261)	$ (2,973)	(2,299)	(2,271)
Credit card, net of reserve \| Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, amount	$ 118,709	$ 127,766
Loans receivable, percent	4.00%	5.00%
Allowance for credit losses	$ (5,898)	$ (6,301)	(5,990)	(6,087)
Other consumer \| Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, amount	$ 2,200	$ 2,089
Loans receivable, percent	0.00%	0.00%
Allowance for credit losses	$ (6)	$ (15)	$ (10)	$ (12)

Leases - Schedule of Lease Information (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Leases [Abstract]
Lease asset	$ 6,821	$ 6,821
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Premises and equipment, net	Premises and equipment, net
Less: Accumulated amortization	$ (1,976)	$ (1,557)
Net lease asset	4,845	5,264
Lease liability	$ 7,154	$ 7,154
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities
Less: Accumulated amortization	$ (1,669)	$ (1,282)
Net lease liability	$ 5,485	$ 5,872

Consolidated Statements of Changes in Stockholders' Equity (unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2023		13,922,532
Beginning balance at Dec. 31, 2023	$ 254,860	$ 139	$ 54,473	$ 213,345	$ (13,097)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	6,562			6,562
Unrealized gain (loss) on investment securities available-for-sale, net of income taxes	(537)				(537)
Stock options exercised, net of shares withheld for purchase price (in shares)		10,171
Stock options exercised, net of shares withheld for purchase price	107		146	(39)
Shares issued as compensation (in shares)		24,729
Shares issued as compensation	515		537	(22)
Stock-based compensation	472		472
Cash dividends to stockholders	(1,115)			(1,115)
Shares repurchased and retired (in shares)		(67,869)
Shares repurchased and retired	(1,399)		(1,399)
Ending balance (in shares) at Mar. 31, 2024		13,889,563
Ending balance at Mar. 31, 2024	$ 259,465	$ 139	54,229	218,731	(13,634)
Beginning balance (in shares) at Dec. 31, 2024	16,662,626	16,662,626
Beginning balance at Dec. 31, 2024	$ 355,139	$ 167	128,598	237,843	(11,469)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	13,932			13,932
Unrealized gain (loss) on investment securities available-for-sale, net of income taxes	2,262				2,262
Stock options exercised, net of shares withheld for purchase price (in shares)		10,396
Stock options exercised, net of shares withheld for purchase price	43		164	(121)
Shares issued as compensation (in shares)		6,331
Shares issued as compensation	78		141	(63)
Stock-based compensation	407		407
Cash dividends to stockholders	(1,666)			(1,666)
Shares repurchased and retired (in shares)		(22,185)
Shares repurchased and retired	$ (618)		(618)
Ending balance (in shares) at Mar. 31, 2025	16,657,168	16,657,168
Ending balance at Mar. 31, 2025	$ 369,577	$ 167	$ 128,692	$ 249,925	$ (9,207)

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2025
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events In April 2025, the Company’s Board of Directors declared a $0.10 per share dividend, payable on May 28, 2025 to shareholders of record on May 12, 2025.

Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Assets
Cash and due from banks	$ 27,836	$ 25,433
Interest-bearing deposits at other financial institutions	266,092	179,841
Federal funds sold	59	58
Total cash and cash equivalents	293,987	205,332
Investment securities available-for-sale	213,452	223,630
Restricted investments	7,031	4,479
Loans held for sale	34,656	21,270
Portfolio loans receivable, net of deferred fees and costs	2,678,406	2,630,163
Less allowance for credit losses	(48,454)	(48,652)
Total portfolio loans held for investment, net	2,629,952	2,581,511
Premises and equipment, net	15,085	15,525
Accrued interest receivable	19,458	16,664
Goodwill	24,085	21,126
Intangible assets	15,556	15,817
Loan servicing assets	2,244	5,511
Deferred tax asset	15,902	16,670
Bank owned life insurance	44,335	43,956
Other assets	34,062	35,420
Total assets	3,349,805	3,206,911
Deposits
Noninterest-bearing	812,224	810,928
Interest-bearing	2,079,109	1,951,011
Total deposits	2,891,333	2,761,939
Federal Home Loan Bank advances	22,000	22,000
Other borrowed funds	12,062	12,062
Accrued interest payable	9,995	9,393
Other liabilities	44,838	46,378
Total liabilities	2,980,228	2,851,772
Stockholders' equity
Common stock, $0.01 par value; 49,000,000 shares authorized; 16,657,168 issued and outstanding at March 31, 2025; 16,662,626 issued and outstanding at December 31, 2024	167	167
Additional paid-in capital	128,692	128,598
Retained earnings	249,925	237,843
Accumulated other comprehensive loss	(9,207)	(11,469)
Total stockholders' equity	369,577	355,139
Total liabilities and stockholders' equity	3,349,805	3,206,911
Other Intangible Assets
Assets
Intangible assets	13,861	14,072
Core deposits intangible
Assets
Intangible assets	$ 1,695	$ 1,745

Acquisition (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
Acquisition (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Business Acquisition [Line Items]
Increase in goodwill due to adjustments	$ 2,959	$ 0	$ 0
Merger-related expenses	1,266	712
IFH
Business Acquisition [Line Items]
Increase in goodwill due to adjustments	3,000
Merger-related expenses	$ 1,300	$ 700

Portfolio Loans Receivable and Allowance for Credit Losses - Schedule of Outstanding Loan Commitments (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, amount	$ 2,683,792	$ 2,637,228
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, amount	594,331	554,550
Real estate: \| Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, amount	693,597	688,552
Real estate: \| Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, amount	931,675	943,019
Real estate: \| Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, amount	343,280	321,252
Credit card \| Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, amount	118,709	127,766
Credit card \| Consumer \| Savings Deposits
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, amount	106,500	97,200
Other consumer \| Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, amount	2,200	2,089
Commitments to Extend Credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	403,208	403,029
Letters of credit	3,122	3,122
Commitments to Extend Credit \| Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	67,495	79,961
Commitments to Extend Credit \| Real estate: \| Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	21,076	20,996
Commitments to Extend Credit \| Real estate: \| Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	48,469	44,201
Commitments to Extend Credit \| Residential - Home Equity \| Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	45,441	46,900
Commitments to Extend Credit \| Construction \| Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	85,377	85,984
Commitments to Extend Credit \| Credit card \| Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	135,112	124,732
Commitments to Extend Credit \| Other consumer \| Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	$ 238	$ 255

Consolidated Statements of Changes in Stockholders' Equity (unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Statement of Stockholders' Equity [Abstract]
Cash dividends to stockholders (in dollar per share)	$ 0.10	$ 0.08

Leases - Narrative (Details) $ in Thousands	3 Months Ended
Leases - Narrative (Details) $ in Thousands	Mar. 31, 2025 USD ($) branch location	Dec. 31, 2024 USD ($)
Lessee, Lease, Description [Line Items]
Number of full service branches \| branch	5
Number of other locations \| location	7
Weighted average discount rate	5.10%	5.08%
Net lease ROU assets	$ 4,845	$ 5,264
Present value of net future lease payments	$ 5,485	$ 5,872
Minimum
Lessee, Lease, Description [Line Items]
Remaining term of contract	1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining term of contract	8 years

Loan Servicing - Loan Servicing Rights and Related Valuation Allowance (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2025	Dec. 31, 2024
Servicing Asset at Fair Value, Amount [Roll Forward]
Balance at beginning of period	$ 5,511	$ 0
Additions	110	5,096
Other changes in fair value	(3,377)	415
Balance at end of period	$ 2,244	$ 5,511

Fair Value (Tables)

3 Months Ended

Mar. 31, 2025

Fair Value Disclosures [Abstract]

Schedule of Financial Instruments Measured at Fair Value on a Recurring Basis

The Company has categorized its financial instruments measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024 as follows:


(in thousands)
March 31, 2025	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Investment securities available-for-sale
U.S. Treasuries	$	118,787	$	118,787	$	—	$	—

Municipal	9,550		—		9,550		—
Corporate	4,711		—		4,711		—
Asset-backed securities	5,414		—		5,414		—
Mortgage-backed securities	74,990		—		74,990		—
Total	$	213,452	$	118,787	$	94,665	$	—

Loans held for sale	$	34,656	$	—	$	34,656	$	—
Loan servicing assets	$	2,244	$	—	$	2,244	$	—




December 31, 2024
Investment securities available-for-sale
U.S. Treasuries	$	126,835	$	126,835	$	—	$	—

Municipal	9,283		—		9,283		—
Corporate	4,711		—		4,711		—
Asset-backed securities	5,526		—		5,526		—
Mortgage-backed securities	77,275		—		77,275		—
Total	$	223,630	$	126,835	$	96,795	$	—

Loans held for sale	$	21,270	$	—	$	21,270	$	—
Loan servicing assets	$	5,511	$	—	$	5,511	$	—

Schedule of Fair Value of Loans Held for Sale

The following table reflects the difference between the fair value carrying amount of loans held for sale, measured at fair value under FASB ASC 825-10, and the aggregate unpaid principal amount the Company is contractually entitled to receive at maturity:


Fair Value of Loans Held for Sale
(in thousands)	March 31, 2025		December 31, 2024
Aggregate fair value	$	34,656	$	21,270
Contractual principal	29,796		16,721
Difference	$	4,860	$	4,549

Schedule of Financial Instruments Measured at Fair Value on a Nonrecurring Basis

The Company has categorized its financial instruments measured at fair value on a nonrecurring basis as of March 31, 2025 and December 31, 2024 as follows:



(in thousands)	March 31, 2025		December 31, 2024
Individually evaluated loans for credit loss, net


Level 3 inputs	$	36,510	$	25,521
Total	$	36,510	$	25,521

Schedule of Unobservable Inputs in Fair Value Measurements

The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at March 31, 2025 and December 31, 2024:

Unobservable Inputs

Valuation Technique

Unobservable Inputs

Range of Inputs

March 31, 2025

Individually evaluated loans

Appraised Value/Discounted Cash Flows

Discounts to appraisals or cash flows for estimated holding and/or selling costs

0 to 30%

December 31, 2024

Valuation Technique

Unobservable Inputs

Range of Inputs

Individually evaluated loans

Appraised Value/Discounted Cash Flows

Discounts to appraisals or cash flows for estimated holding and/or selling costs

0 to 30%

Schedule of Carrying Amount, Fair Value and Fair Value Hierarchy of Financial Instruments

The table below presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments.


	March 31, 2025				December 31, 2024
(in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Level 1
Cash and due from banks	$	27,836	$	27,836	$	25,433	$	25,433
Interest-bearing deposits at other financial institutions	266,092		266,092		179,841		179,841

Federal funds sold	59		59		58		58
Level 2
Accrued interest receivable	$	19,458	$	19,458	$	16,664	$	16,664
Level 3

Portfolio loans receivable, net	$	2,629,952	$	2,576,493	$	2,581,511	$	2,499,578

Restricted investments	7,031		7,031		4,479		4,479

Financial liabilities
Level 1
Noninterest-bearing deposits	$	812,224	$	812,224	$	810,928	$	810,928

Level 2
Accrued interest payable	$	9,995	$	9,995	$	9,393	$	9,393
Level 3
Interest-bearing deposits	$	2,079,109	$	2,090,429	$	1,951,011	$	1,960,728
FHLB advances and other borrowed funds	34,062		33,654		34,062		32,372

Segments

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Segments

The Company’s reportable segments represent business units with discrete financial information whose results are regularly reviewed by management. The four segments include Commercial Banking, OpenSky™ (the Company’s credit card division), Windsor Advantage and Capital Bank Home Loans (the Company’s mortgage loan division).

Our Commercial Banking division operates primarily in the Washington, D.C. and Baltimore metropolitan areas and focuses on providing personalized service to commercial clients throughout our area of operations supplemented by lending outside of our primary market, and nationwide deposit verticals. Additionally, the commercial bank engages in government-guaranteed lending on a national basis.

The Company issues credit cards through OpenSky™, a digitally-driven, nationwide credit card platform providing secured, partially secured, and unsecured credit solutions, and originates residential mortgages for sale in the secondary market through Capital Bank Home Loans (“CBHL”), the Bank’s residential mortgage banking arm. Additionally, Windsor Advantage™, a wholly-owned subsidiary of the Company, is a loan service provider that offers community banks and credit unions with a comprehensive U.S. Small Business Association (“SBA”) 7(a) and U.S. Department of Agriculture (“USDA”) lending platform.

The Company’s reportable segments are determined by the Chief Executive Officer, who is the designated chief operating decision maker, based upon organizational design, leadership structure and

the Company’s products and services offered. The Company’s reportable segments are also distinguished by the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business, which are then aggregated if operating performance, products/services, and customers are similar.

The chief operating decision maker evaluates the financial performance of the Company’s business components by evaluating revenue streams, significant expenses, and variance to the annual financial plan to assess the performance of the Company’s segments and in the determination of allocating resources and investments.

The chief operating decision maker uses revenue streams and other relevant market data to evaluate product pricing and significant expenses to assess segment performance. Segment pretax income or loss, return on assets and the efficiency ratio is used to assess the performance of the commercial bank segment by monitoring the margin between interest income and interest expense. Segment pretax income or loss is used to assess the performance of the CBHL segment by monitoring the mortgage banking revenue from loan originations and sales. Segment pretax income or loss is used to assess the performance of the OpenSky™ segment by monitoring credit card interest income, interchange fees, and other fees. Segment pretax income or loss is used to assess the performance of the Windsor Advantage™ segment by monitoring the service charge revenues from Windsor™ customers.

Loans, investments, and deposits and fees provide the revenues in the commercial bank, loan sales provide the revenues in CBHL, credit card loan interest and fees provide the revenues in OpenSky™, and service charges and ancillary fees provide the revenues in Windsor Advantage™. Interest expense, provisions for credit losses and personnel provide the significant expenses in the commercial bank, cost of loan sales and personnel provide the significant expenses in CBHL, data processing and personnel provide the significant expenses in OpenSky™, and personnel provide the significant expenses in Windsor Advantage™.

Prior to March 31, 2025, the Company disclosed Corporate as a reportable segment. The Company has determined that what was previously deemed the Corporate reportable segment consists of other business activities that are associated with the Commercial Bank and are reflected in the tabular disclosures that follow. It should be noted that such restructuring of the tabular disclosure did not result in any changes to the Company’s revenue and expense allocation methodology. The Company restructured prior period tabular disclosures to achieve appropriate comparability.

Church Street Capital, LLC (“CSCl”) operates as a wholly owned subsidiary of Capital Bancorp, Inc. CSC originates and services a portfolio of primarily mezzanine loans with certain characteristics that do not meet Capital Bank’s general underwriting standards, but command a higher rate of return. At March 31, 2025, CSC had loans totaling $6.7 million with a collectively assessed allowance for credit losses (“ACL”) of $184 thousand. Refer to Note 5 - “Portfolio Loans Receivable and Allowance for Credit Losses” to the “Notes to Unaudited Consolidated Financial Statements” for further discussion of the consolidated ACL. The operations of CSC are included within the Commercial Bank segment performance.

Accounting policies for segments are discussed in detail in Note 1 “Nature of Business and Basis of Presentation” in the “Notes to the Consolidated Financial Statements” contained in Item 8 “Financial Statements and Supplementary Data” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Segment performance is evaluated using income (loss) before taxes. Indirect expenses are allocated on revenue. Transactions among segments are made at fair value.

The following schedules reported internally for performance assessment by the chief operating

decision maker presents financial information for each reportable segment at and for the three months ended March 31, 2025 and 2024.


For the Three Months Ended March 31, 2025
(in thousands)	Commercial Bank		OpenSky™		Windsor Advantage™		CBHL		Consolidated
Interest income	$	48,164	$	14,444	$	—	$	152	$	62,760
Interest expense	16,649		—		—		64		16,713
Net interest income	31,515		14,444		—		88		46,047
Provision for credit losses	446		1,800		—		—		2,246

Net interest income after provision	31,069		12,644		—		88		43,801
Noninterest income
Service charges on deposits	258		—		—		—		258
Credit card fees	—		3,722		—		—		3,722
Mortgage banking revenue	263		—		—		1,568		1,831
Government lending revenue	1,096		—		—		—		1,096
Government loan servicing revenue(1)	(1,038)		—		4,606		—		3,568
Loan servicing rights (government guaranteed)	472		—		—		—		472
Other income	1,423		11		—		168		1,602
Total noninterest income	2,474		3,733		4,606		1,736		12,549
Noninterest expenses
Salaries and employee benefits	10,626		3,345		2,406		1,690		18,067
Occupancy and equipment	1,577		488		711		134		2,910
Professional fees	1,151		591		120		250		2,112
Data processing	440		6,582		53		37		7,112
Advertising	718		874		104		83		1,779
Loan processing	477		19		7		240		743
Foreclosed real estate expenses, net	1		—		—		—		1
Merger-related expenses	1,266		—		—		—		1,266
Operational losses	31		872		—		—		903
Regulatory assessment expenses	865		15		5		4		889
Other operating	1,408		516		254		93		2,271
Total noninterest expenses	18,560		13,302		3,660		2,531		38,053
Net income (loss) before taxes	$	14,983	$	3,075	$	946	$	(707)	$	18,297

Total assets	$	3,192,327	$	119,636	$	23,750	$	14,092	$	3,349,805

(1) Gross government loan servicing revenue totaled $4.6 million, including $1.0 million of Commercial Bank related servicing fees, during 1Q 2025.


For the Three Months Ended March 31, 2024
(in thousands)	Commercial Bank		OpenSky™		CBHL		Consolidated
Interest income	$	33,365	$	14,921	$	83	$	48,369
Interest expense	13,320		—		41		13,361
Net interest income	20,045		14,921		42		35,008
Provision for credit losses	1,168		1,559		—		2,727
Provision for credit losses on unfunded commitments	142		—		—		142
Net interest income after provision	18,735		13,362		42		32,139
Noninterest income
Service charges on deposits	207				—		207
Credit card fees	—		3,881		—		3,881
Mortgage banking revenue	288		—		1,165		1,453
Other income	210		34		187		431
Total noninterest income	705		3,915		1,352		5,972
Noninterest expense
Salaries and employee benefits	8,709		2,812		1,386		12,907
Occupancy and equipment	1,044		434		135		1,613
Professional fees	801		941		205		1,947
Data processing	316		6,407		38		6,761
Advertising	382		1,592		58		2,032
Loan processing	159		13		199		371

Merger-related expenses	712		—		—		712

Regulatory assessment expenses	473		—		—		473
Other operating	1,187		1,400		84		2,671
Total noninterest expenses	13,783		13,599		2,105		29,487
Net income (loss) before taxes	$	5,657	$	3,678	$	(711)	$	8,624

Total assets	$	2,208,135	$	105,318	$	10,785	$	2,324,238

Notable items:

–Total assets includes goodwill and intangible assets of $24.1 million at the Commercial Bank and $13.9 million within Windsor Advantage™ at March 31, 2025.

–Commercial Bank’s return on assets of 1.90% and 1.03% for the three months ended March 31, 2025 and 2024, respectively, is calculated by dividing net income before taxes by total assets.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Fair Value

3 Months Ended

Mar. 31, 2025

Fair Value Disclosures [Abstract]

Fair Value

Note 8 - Fair Value

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. This includes certain U.S. Treasury and other U.S. Government and government agency securities actively traded in over-the-counter markets.

Level 2 - Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 - Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate fair value on a recurring basis:

Investment securities available-for-sale - The fair values for investment securities available-for-sale are provided by an independent pricing service and are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing, which is a mathematical technique commonly used to price debt securities that are not actively traded, values debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3).

Loans held for sale - The fair value of loans held for sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2).

Loan servicing assets - The fair values of loan servicing assets are determined at a tranche level, based on market prices for comparable servicing contracts (Level 2), when available, or alternatively based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model utilizes interest rate, prepayment speed, and default rate assumptions that market participants would use in estimating future net servicing income and that can be validated against available market data (Level 2).

The Company has categorized its financial instruments measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024 as follows:


(in thousands)
March 31, 2025	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Investment securities available-for-sale
U.S. Treasuries	$	118,787	$	118,787	$	—	$	—

Municipal	9,550		—		9,550		—
Corporate	4,711		—		4,711		—
Asset-backed securities	5,414		—		5,414		—
Mortgage-backed securities	74,990		—		74,990		—
Total	$	213,452	$	118,787	$	94,665	$	—

Loans held for sale	$	34,656	$	—	$	34,656	$	—
Loan servicing assets	$	2,244	$	—	$	2,244	$	—




December 31, 2024
Investment securities available-for-sale
U.S. Treasuries	$	126,835	$	126,835	$	—	$	—

Municipal	9,283		—		9,283		—
Corporate	4,711		—		4,711		—
Asset-backed securities	5,526		—		5,526		—
Mortgage-backed securities	77,275		—		77,275		—
Total	$	223,630	$	126,835	$	96,795	$	—

Loans held for sale	$	21,270	$	—	$	21,270	$	—
Loan servicing assets	$	5,511	$	—	$	5,511	$	—

Financial instruments recorded using FASB ASC 825-10

Under FASB ASC 825-10, the Company may elect to report most financial instruments and certain other items at fair value on an instrument-by-instrument basis with changes in fair value reported in net income. After the initial adoption, the election is made at the acquisition of an eligible financial asset, financial liability or firm commitment or when certain specified reconsideration events occur. The fair value election, with respect to an item, may not be revoked once an election is made.


Fair Value of Loans Held for Sale
(in thousands)	March 31, 2025		December 31, 2024
Aggregate fair value	$	34,656	$	21,270
Contractual principal	29,796		16,721
Difference	$	4,860	$	4,549

The Company has elected to account for loans held for sale at fair value to eliminate the mismatch that would occur by recording changes in market value on derivative instruments used to hedge loans held for sale while carrying the loans at the lower of cost or market. As of March 31, 2025 and December 31, 2024, there were no held for sale loans which were classified as nonaccrual.

Fair value measurements on a nonrecurring basis

Individually evaluated loans - The Company has measured expected credit losses based on the fair value of the loan's collateral and discounted cash flow analysis, where appropriate. Fair value of the collateral is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values. As of March 31, 2025 and December 31, 2024, the fair values consist of loan balances of $46.6 million and $34.9 million, with specific reserves of $10.1 million and $9.3 million, respectively.

Foreclosed real estate - The Company's foreclosed real estate is measured at fair value less cost to sell. Fair value is determined based on offers and/or appraisals. Cost to sell the real estate is based on standard market factors. The Company categorizes its foreclosed real estate as Level 3. As of March 31, 2025 and December 31, 2024, there was no foreclosed real estate held by the Company.

The Company has categorized its financial instruments measured at fair value on a nonrecurring basis as of March 31, 2025 and December 31, 2024 as follows:



(in thousands)	March 31, 2025		December 31, 2024
Individually evaluated loans for credit loss, net


Level 3 inputs	$	36,510	$	25,521
Total	$	36,510	$	25,521

The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at March 31, 2025 and December 31, 2024:

Unobservable Inputs

Valuation Technique

Unobservable Inputs

Range of Inputs

March 31, 2025

Individually evaluated loans

Appraised Value/Discounted Cash Flows

Discounts to appraisals or cash flows for estimated holding and/or selling costs

0 to 30%

December 31, 2024

Valuation Technique

Unobservable Inputs

Range of Inputs

Individually evaluated loans

Appraised Value/Discounted Cash Flows

Discounts to appraisals or cash flows for estimated holding and/or selling costs

0 to 30%

Fair value of financial instruments

Fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practical to estimate the value is based upon the characteristics of the instruments and relevant market information. Financial instruments include cash, evidence of ownership in an entity, or contracts that convey or impose on an entity the contractual right or obligation to either receive or deliver cash for another financial instrument.

The information used to determine fair value is highly subjective in nature and, therefore, the results are imprecise. Subjective factors include, among other things, estimates of cash flows, risk characteristics, credit quality, and interest rates, all of which are subject to change. Since the fair value is estimated as of the balance sheet date, the amounts that will actually be realized or paid upon settlement or maturity on these various instruments could be significantly different.

As of March 31, 2025, the techniques used by the Company to estimate the exit price of the loan portfolio consists of similar procedures to those used as of December 31, 2024. The fair value of the Company’s loan portfolio includes a credit risk assumption in the determination of the fair value of its loans. This credit risk assumption is intended to approximate the fair value that a market participant would realize in a hypothetical orderly transaction. The Company’s loan portfolio is initially fair valued using a segmented approach. The Company divides its loan portfolio into the following categories: variable rate loans, individually evaluated loans, and all other loans. The results are then adjusted to account for credit risk as described above, and a further credit risk discount is applied through the use of a discounted cash flow model to compensate for illiquidity risk, based on certain assumptions included within the discounted cash flow model, primarily the use of discount rates that better capture inherent credit risk over the lifetime of a loan.

For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values approximate carrying values. Fair values for individually evaluated loans are estimated using discounted cash flow models or based on the fair value of the underlying collateral.

The fair value of cash and cash equivalents and investments in restricted stocks is the carrying amount. Restricted investments includes equity of the Federal Reserve and other banker’s banks.

The fair value of noninterest-bearing deposits and securities sold under agreements to repurchase is the carrying amount.

The fair value of checking, savings, and money market deposits is the amount payable on demand at the reporting date. Fair value of fixed maturity term accounts and individual retirement accounts is estimated using rates currently offered for accounts of similar remaining maturities.

The fair value of borrowings is estimated by discounting the value of contractual cash flows using current market rates for borrowings with similar terms and remaining maturities.

The fair value of outstanding loan commitments, unused lines of credit, and letters of credit are not included in the table since the carrying value generally approximates fair value. These instruments generate fees that approximate those currently charged to originate similar commitments.

The table below presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments.


	March 31, 2025				December 31, 2024
(in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Level 1
Cash and due from banks	$	27,836	$	27,836	$	25,433	$	25,433
Interest-bearing deposits at other financial institutions	266,092		266,092		179,841		179,841

Federal funds sold	59		59		58		58
Level 2
Accrued interest receivable	$	19,458	$	19,458	$	16,664	$	16,664
Level 3

Portfolio loans receivable, net	$	2,629,952	$	2,576,493	$	2,581,511	$	2,499,578

Restricted investments	7,031		7,031		4,479		4,479

Financial liabilities
Level 1
Noninterest-bearing deposits	$	812,224	$	812,224	$	810,928	$	810,928

Level 2
Accrued interest payable	$	9,995	$	9,995	$	9,393	$	9,393
Level 3
Interest-bearing deposits	$	2,079,109	$	2,090,429	$	1,951,011	$	1,960,728
FHLB advances and other borrowed funds	34,062		33,654		34,062		32,372

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-100

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2E
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 940
-SubTopic 820
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478119/940-820-50-1

+ Details

Consolidated Statements of Income (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Interest income
Loans, including fees	$ 58,691	$ 45,991
Investment securities available-for-sale	1,861	1,251
Federal funds sold and other	2,208	1,127
Total interest income	62,760	48,369
Interest expense
Deposits	16,512	12,833
Borrowed funds	201	528
Total interest expense	16,713	13,361
Net interest income	46,047	35,008
Provision for credit losses	2,246	2,727
Provision for credit losses on unfunded commitments	0	142
Net interest income after provision for credit losses	43,801	32,139
Noninterest income
Loan servicing rights (government guaranteed)	472	0
Other income	1,602	431
Total noninterest income	12,549	5,972
Noninterest expenses
Salaries and employee benefits	18,067	12,907
Occupancy and equipment	2,910	1,613
Professional fees	2,112	1,947
Data processing	7,112	6,761
Advertising	1,779	2,032
Loan processing	743	371
Foreclosed real estate expenses, net	1	1
Merger-related expenses	1,266	712
Operational losses	903	931
Regulatory assessment expenses	889	473
Other operating	2,271	1,739
Total noninterest expenses	38,053	29,487
Net income (loss) before taxes	18,297	8,624
Income tax expense	4,365	2,062
Net income	$ 13,932	$ 6,562
Basic earnings per share (in dollars per share)	$ 0.84	$ 0.47
Diluted earnings per share (in dollars per share)	$ 0.82	$ 0.47
Weighted average common shares outstanding:
Basic (in shares)	16,665,528	13,918,724
Diluted (in shares)	16,925,454	13,918,724
Service charges on deposits
Noninterest income
Noninterest income	$ 258	$ 207
Credit card fees
Noninterest income
Noninterest income	3,722	3,881
Mortgage banking revenue
Noninterest income
Noninterest income	1,831	1,453
Government lending revenue
Noninterest income
Noninterest income	1,096	0
Government loan servicing revenue
Noninterest income
Noninterest income	$ 3,568	$ 0

Portfolio Loans Receivable and Allowance for Credit Losses - Schedule of Loans by Credit Quality Indicators and Gross Charge-Offs (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2025	Dec. 31, 2024
Term Loans by Origination Year
Current year	$ 121,972	$ 621,239
One year before current year	638,164	453,647
Two years before current year	446,254	478,336
Three years before current year	436,334	296,945
Four years before current year	275,883	208,179
Prior	646,476	451,116
Revolving	118,709	127,766
Total	2,683,792	2,637,228
Gross Charge-Offs
Current year	0	84
One year before current year	0	80
Two years before current year	0	876
Three years before current year	0	0
Four years before current year	0	0
Prior	148	1,043
Revolving	2,297	7,145
Total	2,445	9,228
Residential
Gross Charge-Offs
Current year	0	0
One year before current year	0	0
Two years before current year	0	0
Three years before current year	0	0
Four years before current year	0	0
Prior	1	907
Revolving	0	0
Total	1	907
Commercial
Gross Charge-Offs
Current year	0	0
One year before current year	0	0
Two years before current year	0	570
Three years before current year	0	0
Four years before current year	0	0
Prior	0	0
Revolving	0	0
Total	0	570
Commercial and Industrial
Term Loans by Origination Year
Current year	34,280	129,275
One year before current year	168,005	130,856
Two years before current year	141,530	118,547
Three years before current year	88,439	42,952
Four years before current year	41,381	24,595
Prior	120,696	108,325
Revolving	0	0
Total	594,331	554,550
Gross Charge-Offs
Current year	0	84
One year before current year	0	80
Two years before current year	0	306
Three years before current year	0	0
Four years before current year	0	0
Prior	147	136
Revolving	0	0
Total	147	606
Commercial and Industrial \| Pass
Term Loans by Origination Year
Current year	34,280	129,043
One year before current year	167,510	130,647
Two years before current year	121,596	117,346
Three years before current year	85,623	42,747
Four years before current year	39,837	21,356
Prior	106,620	107,953
Revolving	0	0
Total	555,466	549,092
Commercial and Industrial \| Special Mention
Term Loans by Origination Year
Current year	0	232
One year before current year	222	0
Two years before current year	15,702	489
Three years before current year	1,969	0
Four years before current year	201	0
Prior	8,047	270
Revolving	0	0
Total	26,141	991
Commercial and Industrial \| Substandard
Term Loans by Origination Year
Current year	0	0
One year before current year	273	209
Two years before current year	4,232	712
Three years before current year	847	205
Four years before current year	1,343	3,239
Prior	6,029	102
Revolving	0	0
Total	12,724	4,467
Commercial and Industrial \| Doubtful
Term Loans by Origination Year
Current year	0	0
One year before current year	0	0
Two years before current year	0	0
Three years before current year	0	0
Four years before current year	0	0
Prior	0	0
Revolving	0	0
Total	0	0
Real estate: \| Residential
Term Loans by Origination Year
Current year	25,022	155,867
One year before current year	135,833	129,639
Two years before current year	116,787	124,268
Three years before current year	121,911	81,570
Four years before current year	71,360	73,440
Prior	222,684	123,768
Revolving	0	0
Total	693,597	688,552
Real estate: \| Residential \| Pass
Term Loans by Origination Year
Current year	25,022	155,867
One year before current year	135,833	129,639
Two years before current year	114,820	122,203
Three years before current year	119,827	76,906
Four years before current year	69,801	69,647
Prior	214,030	117,272
Revolving	0	0
Total	679,333	671,534
Real estate: \| Residential \| Special Mention
Term Loans by Origination Year
Current year	0	0
One year before current year	0	0
Two years before current year	1,967	2,065
Three years before current year	2,051	1,242
Four years before current year	1,237	3,604
Prior	2,084	0
Revolving	0	0
Total	7,339	6,911
Real estate: \| Residential \| Substandard
Term Loans by Origination Year
Current year	0	0
One year before current year	0	0
Two years before current year	0	0
Three years before current year	33	3,422
Four years before current year	322	189
Prior	6,570	6,496
Revolving	0	0
Total	6,925	10,107
Real estate: \| Residential \| Doubtful
Term Loans by Origination Year
Current year	0	0
One year before current year	0	0
Two years before current year	0	0
Three years before current year	0	0
Four years before current year	0	0
Prior	0	0
Revolving	0	0
Total	0	0
Real estate: \| Commercial
Term Loans by Origination Year
Current year	37,623	235,929
One year before current year	223,818	63,672
Two years before current year	70,984	188,916
Three years before current year	178,939	151,694
Four years before current year	142,108	92,358
Prior	278,203	210,450
Revolving	0	0
Total	931,675	943,019
Real estate: \| Commercial \| Pass
Term Loans by Origination Year
Current year	37,623	235,929
One year before current year	223,818	61,372
Two years before current year	66,036	170,611
Three years before current year	157,792	146,642
Four years before current year	136,190	92,038
Prior	260,077	207,631
Revolving	0	0
Total	881,536	914,223
Real estate: \| Commercial \| Special Mention
Term Loans by Origination Year
Current year	0	0
One year before current year	0	2,300
Two years before current year	2,255	10,747
Three years before current year	17,673	5,052
Four years before current year	5,918	0
Prior	2,534	788
Revolving	0	0
Total	28,380	18,887
Real estate: \| Commercial \| Substandard
Term Loans by Origination Year
Current year	0	0
One year before current year	0	0
Two years before current year	2,693	7,558
Three years before current year	3,474	0
Four years before current year	0	320
Prior	15,592	2,031
Revolving	0	0
Total	21,759	9,909
Real estate: \| Commercial \| Doubtful
Term Loans by Origination Year
Current year	0	0
One year before current year	0	0
Two years before current year	0	0
Three years before current year	0	0
Four years before current year	0	0
Prior	0	0
Revolving	0	0
Total	0	0
Real estate: \| Construction
Term Loans by Origination Year
Current year	25,047	98,942
One year before current year	109,287	129,202
Two years before current year	116,953	46,532
Three years before current year	46,978	20,634
Four years before current year	20,952	17,710
Prior	24,063	8,232
Revolving	0	0
Total	343,280	321,252
Real estate: \| Construction \| Pass
Term Loans by Origination Year
Current year	25,047	98,942
One year before current year	109,287	129,202
Two years before current year	115,953	46,532
Three years before current year	46,978	20,634
Four years before current year	20,952	15,458
Prior	19,788	6,175
Revolving	0	0
Total	338,005	316,943
Real estate: \| Construction \| Special Mention
Term Loans by Origination Year
Current year	0	0
One year before current year	0	0
Two years before current year	1,000	0
Three years before current year	0	0
Four years before current year	0	0
Prior	0	0
Revolving	0	0
Total	1,000	0
Real estate: \| Construction \| Substandard
Term Loans by Origination Year
Current year	0	0
One year before current year	0	0
Two years before current year	0	0
Three years before current year	0	0
Four years before current year	0	2,252
Prior	4,275	2,057
Revolving	0	0
Total	4,275	4,309
Real estate: \| Construction \| Doubtful
Term Loans by Origination Year
Current year	0	0
One year before current year	0	0
Two years before current year	0	0
Three years before current year	0	0
Four years before current year	0	0
Prior	0	0
Revolving	0	0
Total	0	0
Other consumer \| Consumer
Term Loans by Origination Year
Current year	0	1,226
One year before current year	1,221	278
Two years before current year	0	73
Three years before current year	67	95
Four years before current year	82	76
Prior	830	341
Revolving	0	0
Total	2,200	2,089
Other consumer \| Consumer \| Pass
Term Loans by Origination Year
Current year	0	1,226
One year before current year	1,221	278
Two years before current year	0	73
Three years before current year	67	95
Four years before current year	82	76
Prior	830	341
Revolving	0	0
Total	2,200	2,089
Other consumer \| Consumer \| Special Mention
Term Loans by Origination Year
Current year	0	0
One year before current year	0	0
Two years before current year	0	0
Three years before current year	0	0
Four years before current year	0	0
Prior	0	0
Revolving	0	0
Total	0	0
Other consumer \| Consumer \| Substandard
Term Loans by Origination Year
Current year	0	0
One year before current year	0	0
Two years before current year	0	0
Three years before current year	0	0
Four years before current year	0	0
Prior	0	0
Revolving	0	0
Total	0	0
Other consumer \| Consumer \| Doubtful
Term Loans by Origination Year
Current year	0	0
One year before current year	0	0
Two years before current year	0	0
Three years before current year	0	0
Four years before current year	0	0
Prior	0	0
Revolving	0	0
Total	0	0
Credit card, net of reserve \| Consumer
Term Loans by Origination Year
Total	118,709	127,766
Gross Charge-Offs
Current year	0	0
One year before current year	0	0
Two years before current year	0	0
Three years before current year	0	0
Four years before current year	0	0
Prior	0	0
Revolving	2,297	7,145
Total	2,297	7,145
Credit card, net of reserve \| Consumer \| Ungraded
Term Loans by Origination Year
Current year	0	0
One year before current year	0	0
Two years before current year	0	0
Three years before current year	0	0
Four years before current year	0	0
Prior	0	0
Revolving	118,709	127,766
Total	$ 118,709	$ 127,766

Goodwill and Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
2025	$ 785
2026	1,043
2027	1,038
2028	1,033
2029	1,026
Thereafter	10,631
Net Carrying Amount	$ 15,556	$ 15,817

Fair Value - Schedule of Financial Instruments Measured at Fair Value on a Nonrecurring Basis (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2025 USD ($) loanModification	Mar. 31, 2024 loanModification	Dec. 31, 2024 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of loan modifications \| loanModification	12	0
Fair Value, Measurements, Nonrecurring \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually evaluated loans for credit loss, net \| $	$ 36,510		$ 25,521

Fair Value - Schedule of Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	$ 213,452	$ 223,630
Loans held for sale	34,656	21,270
Loan servicing assets	2,244	5,511	$ 5,511	$ 0
Contractual principal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	29,796	16,721
Loan servicing assets	2,244	5,511
U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	118,787	126,835
Municipal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	9,550	9,283
Corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	4,711	4,711
Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	5,414	5,526
Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	74,990	77,275
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Contractual principal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loan servicing assets	0	0
Significant Other Observable Inputs (Level 2) \| Contractual principal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loan servicing assets	2,244	5,511
Significant Unobservable Inputs (Level 3) \| Contractual principal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loan servicing assets	0	0
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	213,452	223,630
Loans held for sale	34,656	21,270
Fair Value, Measurements, Recurring \| U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	118,787	126,835
Fair Value, Measurements, Recurring \| Municipal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	9,550	9,283
Fair Value, Measurements, Recurring \| Corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	4,711	4,711
Fair Value, Measurements, Recurring \| Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	5,414	5,526
Fair Value, Measurements, Recurring \| Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	74,990	77,275
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	118,787	126,835
Loans held for sale	0	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	118,787	126,835
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Municipal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	94,665	96,795
Loans held for sale	34,656	21,270
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Municipal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	9,550	9,283
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	4,711	4,711
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	5,414	5,526
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	74,990	77,275
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Loans held for sale	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Municipal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	$ 0	$ 0

Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Cash flows from operating activities
Net Income (Loss)	$ 13,932	$ 6,562
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provision for credit losses	2,246	2,727
Provision for credit losses on unfunded commitments	0	142
Provision for mortgage put-back reserve, net	16	13
Net amortization on investment securities available-for-sale	35	60
Premises and equipment depreciation	215	85
Lease asset amortization	419	238
Amortization of intangible assets	261	0
Increase in cash surrender value of BOLI	(379)	(351)
Net change in loan servicing assets	3,267	0
Executive long-term incentive plan expense	143	149
Stock-based compensation expense	407	472
Director and employee compensation paid in Company stock	78	515
Deferred income tax benefit	1	(7)
Valuation allowance on derivatives	28	0
Decrease in valuation of loans held for sale carried at fair value	(63)	0
Proceeds from sales of loans held for sale	81,462	37,555
Originations of loans held for sale	(72,909)	(40,377)
Government lending revenue	(1,096)	0
Changes in assets and liabilities:
Accrued interest receivable	(2,794)	(764)
Taxes payable	4,037	489
Other assets	(1,657)	(8,885)
Accrued interest payable	602	426
Other liabilities	(5,670)	(2,461)
Net cash provided by (used in) operating activities	22,581	(3,412)
Cash flows from investing activities
Purchases of securities available-for-sale	(240)	(15,362)
Proceeds from calls and maturities of securities available-for-sale	13,374	20,788
Net purchases of restricted investments	(2,552)	(88)
Net increase in portfolio loans receivable	(71,467)	(63,224)
Net (purchases) sales of premises and equipment	(194)	246
Net cash used in investing activities	(61,079)	(57,640)
Net increase (decrease) in:
Noninterest-bearing deposits	1,296	48,439
Interest-bearing deposits	128,098	61,260
Other borrowed funds	0	(15,000)
Dividends paid	(1,666)	(1,115)
Repurchase of common stock	(618)	(1,399)
Net proceeds from exercise of stock options	43	107
Net cash provided by financing activities	127,153	92,292
Net increase in cash and cash equivalents	88,655	31,240
Cash and cash equivalents, beginning of year	205,332	53,964	$ 53,964
Cash and cash equivalents, end of period	293,987	85,204	205,332
Noncash investing and financing activities:
Change in unrealized gains (losses) on investments	2,991	(589)
Goodwill measurement period adjustment	2,959	0	$ 0
Cash paid during the period for:
Taxes	8	36
Interest	$ 16,111	$ 12,935

Investment Securities (Tables)

3 Months Ended

Mar. 31, 2025

Investments, Debt and Equity Securities [Abstract]

Schedule of Amortized Cost, Fair Value for Credit Losses


(in thousands)
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
March 31, 2025
U.S. Treasuries	$	126,780	$	75	$	(8,068)	$	—	$	118,787

Municipal	11,698		8		(2,156)		—		9,550
Corporate	5,000		—		(289)		—		4,711
Asset-backed securities	5,391		23		—		—		5,414
Mortgage-backed securities	76,697		94		(1,801)		—		74,990
Total	$	225,566	$	200	$	(12,314)	$	—	$	213,452

December 31, 2024
U.S. Treasuries	$	136,831	$	42	$	(10,038)	$	—	$	126,835

Municipal	11,698		5		(2,420)		—		9,283
Corporate	5,000		—		(289)		—		4,711
Asset-backed securities	5,501		25		—		—		5,526
Mortgage-backed securities	79,939		2		(2,666)		—		77,275
Total	$	238,969	$	74	$	(15,413)	$	—	$	223,630

Schedule of Investments Classified by Contractual Maturity Date


	March 31, 2025				December 31, 2024
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	10,000	$	9,993	$	20,003	$	19,882
One to five years	97,014		91,901		97,052		90,570
Five to ten years	31,946		27,732		29,785		25,446
Beyond ten years	4,518		3,422		6,689		4,931
Asset-backed securities(1)	5,391		5,414		5,501		5,526
Mortgage-backed securities(1)	76,697		74,990		79,939		77,275
Total	$	225,566	$	213,452	$	238,969	$	223,630

_______________

(1) Asset-backed and Mortgage-backed securities are due in monthly installments.

Schedule of Investment Portfolio in Continuous Unrealized Loss Position, Fair Value


	Less than 12 months				12 months or longer				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2025
U.S. Treasuries	$	—	$	—	$	102,987	$	(8,068)	$	102,987	$	(8,068)
Municipal	—		—		8,634		(2,156)		8,634		(2,156)
Corporate	—		—		4,711		(289)		4,711		(289)

Mortgage-backed securities	36,339		(342)		18,201		(1,459)		54,540		(1,801)
Total	$	36,339	$	(342)	$	134,533	$	(11,972)	$	170,872	$	(12,314)

December 31, 2024
U.S. Treasuries	$	10,883	$	(93)	$	111,196	$	(9,945)	$	122,079	$	(10,038)

Municipal	—		—		8,373		(2,420)		8,373		(2,420)
Corporate	—		—		4,711		(289)		4,711		(289)

Mortgage-backed securities	55,243		(901)		18,272		(1,765)		73,515		(2,666)
Total	$	66,126	$	(994)	$	142,552	$	(14,419)	$	208,678	$	(15,413)

Leases

3 Months Ended

Mar. 31, 2025

Leases [Abstract]

Leases

The Company’s primary leasing activities relate to certain real estate leases entered into in support of the Company’s branch operations and back office operations. The Company leases five of its full service branches and seven other locations for corporate/administration activities, operations, and loan production. All property leases under lease agreements have been designated as operating leases. The Company does not have leases designated as finance leases.

The Company determines if an arrangement is a lease at inception. Operating lease Right of Use (“ROU”) assets are included in premises and equipment, and operating lease liabilities are included as other liabilities in the consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The historical weighted average discount rate was 5.10% at March 31, 2025 and 5.08% at December 31, 2024. The operating lease ROU asset also includes any lease pre-payments. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which the Company has elected to account for separately as the non-lease component amounts are readily determinable under most leases.

As of March 31, 2025, the Company’s net lease ROU assets and related lease liabilities were $4.8 million and $5.5 million, respectively, compared to December 31, 2024 balances of $5.3 million of ROU assets and $5.9 million of lease liabilities, and have remaining terms ranging from one to eight years, including extension options that the Company is reasonably certain will be exercised. As of March 31, 2025, the Company had not entered into any material leases that have not yet commenced. The Company’s lease information is summarized as follows:


(in thousands)	March 31, 2025		December 31, 2024
Lease Right of Use Asset:
Lease asset	$	6,821	$	6,821
Less: Accumulated amortization	(1,976)		(1,557)
Net lease asset	$	4,845	$	5,264



Lease Liability:
Lease liability	$	7,154	7,154
Less: Accumulated amortization	(1,669)		(1,282)
Net lease liability	$	5,485	$	5,872

Future minimum payments for operating leases with initial or remaining terms of one year or more are as follows:


(in thousands)	March 31, 2025
Amounts due in:
2025	$	1,569
2026	1,933
2027	626
2028	449
2029	441
2030 and thereafter	1,188
Total future lease payments	6,206
Discount of cash flows	(721)
Present value of net future lease payments	$	5,485

Nature of Business and Basis of Presentation (Policies)	3 Months Ended
Nature of Business and Basis of Presentation (Policies)	Mar. 31, 2025
Accounting Policies [Abstract]
Nature of operations	Nature of operations: Capital Bancorp, Inc. is a Maryland corporation and the bank holding company (the “Company”) for Capital Bank, N.A. (the “Bank”). The Company's primary operations are conducted by the Bank, which is headquartered in Rockville, Maryland. The Company serves businesses, not-for-profit associations, entrepreneurs and others throughout the Washington D.C., Baltimore, other Maryland metropolitan areas, Florida, Illinois and North Carolina through seven commercial bank branches, one mortgage banking office, three loan production offices, three government loan servicing offices, and one credit card operations office. The Bank is principally engaged in providing commercial, real estate, and credit card loans along with other banking services, and attracting deposits. The Company issues credit cards through OpenSky™, a digitally-driven, nationwide credit card platform providing secured, partially secured, and unsecured credit solutions, and originates residential mortgages for sale in the secondary market through Capital Bank Home Loans (“CBHL”), the Bank’s residential mortgage banking arm. Additionally, Windsor Advantage™, a wholly-owned subsidiary of the Company, is a loan service provider that offers community banks and credit unions with a comprehensive U.S. Small Business Association (“SBA”) 7(a) and U.S. Department of Agriculture (“USDA”) lending platform. In addition, the Company owns all of the stock of Capital Bancorp (MD) Statutory Trust I (the “Trust”). The Trust is a special purpose non-consolidated entity organized for the sole purpose of issuing trust preferred securities.
Basis of presentation	Basis of presentation: The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with rules and regulations of the Securities and Exchange Commission (“SEC”) and include the activity of the Company and its wholly-owned subsidiaries, the Bank, Windsor Advantage™, and Church Street Capital. The statements do not include all of the information and footnotes required by GAAP for complete financial statements. All adjustments have been made which, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. Such adjustments are all of a normal and recurring nature. All significant inter-company accounts and transactions have been eliminated in consolidation. The results of operations for the three months ended March 31, 2025 are not necessarily indicative of the results that may be expected for the full year. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto as of December 31, 2024, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024. The Company reports its activities as four divisions and reporting segments: Commercial Banking, OpenSky™, Windsor Advantage™, and Capital Bank Home Loans. In determining the appropriateness of segment definition, the Company considers components of the business about which financial information is available and regularly evaluated relative to resource allocation and performance assessment.
Recent Adoption of New Accounting Standards and Recently Issued Accounting Pronouncements	Recent Adoption of New Accounting Standards In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2023-07, "Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). ASU 2023-07 requires public entities to disclose significant segment expenses, an amount and description for other segment items, the title and position of the entity’s chief operating decision maker ("CODM") and an explanation of how the CODM uses the reported measures of profit or loss to assess segment performance, and, on an interim basis, certain segment related disclosures that previously were required only on an annual basis. ASU 2023-07 also clarifies that entities with a single reportable segment are subject to both new and existing segment reporting requirements and that an entity is permitted to disclose multiple measures of segment profit or loss, provided that certain criteria are met. ASU 2023-07 is effective for the Company for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted ASU 2023-07 effective December 31, 2024. See Note 9 - Segments for new disclosures required by ASU 2023-07. Recently Issued Accounting Pronouncements: In December 2023, the FASB issued Accounting Standards Update 2023-09, “Income Taxes (Topic 740), Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires public entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. ASU 2023-09 also requires all entities to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold, among other things. ASU 2023-09 is effective for the Company for fiscal years beginning after December 15, 2024 with early adoption permitted. The Company will update its income tax disclosures upon adoption. In November 2024, the FASB issued Accounting Standards Update 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40)" ("ASU 2024-03"). ASU 2024-03 requires public entities to provide disaggregated disclosures, in the notes to the financial statements, of certain categories of expenses that are included in expense line items on the face of the income statement. ASU 2024-03 is effective for the Company for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company will update its expense disclosures upon adoption. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company's financial position, results of operations or cash flows.
Reclassifications	Reclassifications: Certain reclassifications have been made to amounts reported in prior periods to conform to the current period presentation. The reclassifications had no material effect on net income or total stockholders' equity.
Subsequent events	Subsequent events: Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. For further information on a subsequent event related to the Company’s quarterly dividend, refer to Note 10.
Fair Value	Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. This includes certain U.S. Treasury and other U.S. Government and government agency securities actively traded in over-the-counter markets. Level 2 - Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 - Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Portfolio Loans Receivable and Allowance for Credit Losses - Schedule of Credit Losses for Financing Receivables (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 48,652	$ 28,610
Provision for credit losses	2,246	2,727
Balance at end of period	48,454	29,350
Unfunded Lines of Credit
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	1,191	806
Provision for credit losses	0	142
Balance at end of period	1,191	948
Mortgage Loans Sold
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	2,260	985
Provision for credit losses	16	13
Balance at end of period	$ 2,276	$ 998