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Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2019	Mar. 12, 2020
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Registrant Name	Capital Bancorp Inc
Entity Central Index Key	0001419536
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	true
Entity Small Business	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		13,869,509
Entity Public Float	$ 119.6
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Assets
Cash and due from banks	$ 10,530	$ 10,431
Interest bearing deposits at other financial institutions	102,447	22,007
Federal funds sold	1,847	2,285
Total cash and cash equivalents	114,824	34,723
Investment securities available for sale	60,828	46,932
Restricted investments	3,966	2,503
Loans held for sale	71,030	18,526
Loans receivable, net of allowance for loan losses of $13,301 and $11,308 at December 31, 2019 and December 31, 2018, respectively	1,157,820	988,960
Premises and equipment, net	6,092	2,975
Accrued interest receivable	4,770	4,462
Deferred income taxes	4,263	3,654
Foreclosed real estate	2,384	142
Other assets	2,518	2,181
Total assets	1,428,495	1,105,058
Deposits
Noninterest-bearing, including related party balances of $16,009 and $11,214 at December 31, 2019 and December 31, 2018, respectively	291,777	242,259
Interest-bearing, including related party balances of $125,304 and $144,624 at December 31, 2019 and December 31, 2018, respectively	933,644	712,981
Total deposits	1,225,421	955,240
Securities sold under agreements to repurchase	0	3,332
Federal funds purchased	0	2,000
Federal Home Loan Bank advances	32,222	2,000
Other borrowed funds	15,423	15,393
Accrued interest payable	1,801	1,565
Other liabilities	20,297	10,964
Total liabilities	1,295,164	990,494
Stockholders' equity
Preferred stock, $.01 par value; 1,000,000 shares authorized; no shares issued or outstanding at December 31, 2019 and December 31, 2018	0	0
Common stock, $.01 par value; 49,000,000 shares authorized; 13,894,842 and 13,672,479 issued and outstanding at December 31, 2019 and December 31, 2018, respectively	139	137
Additional paid-in capital	51,561	49,321
Retained earnings	81,618	65,701
Accumulated other comprehensive income (loss)	13	(595)
Total stockholders' equity	133,331	114,564
Total liabilities and stockholders' equity	$ 1,428,495	$ 1,105,058

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Allowance for loan losses	$ 13,301	$ 11,308
Noninterest bearing deposits, related party	16,009	11,214
Interest bearing deposits, related party	$ 125,304	$ 144,624
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
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)	13,894,842	13,672,479
Common stock, shares outstanding (in shares)	13,894,842	13,672,479

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Interest income
Loans, including fees	$ 81,305	$ 67,229
Investment securities available for sale	924	1,041
Federal funds sold and other	1,125	857
Total interest income	83,354	69,127
Interest expense
Deposits, includes interest expense payable to related parties of $1,772 and $1,727 for the years ended December 31, 2019 and, 2018, respectively.	13,689	9,792
Borrowed funds	2,153	1,447
Total interest expense	15,842	11,239
Net interest income	67,512	57,888
Provision for loan losses	2,791	2,140
Net interest income after provision for loan losses	64,721	55,748
Noninterest income
Gain (loss) on sale of investment securities available for sale	26	(2)
Loss on sale of foreclosed real estate	0	(21)
Loss on disposal of premises and equipment	0	(276)
Other fees and charges	393	414
Total noninterest income	24,518	16,124
Noninterest expenses
Salaries and employee benefits	32,586	25,164
Occupancy and equipment	4,360	4,319
Professional fees	2,871	2,124
Data processing	15,512	14,184
Advertising	2,066	1,460
Loan processing	1,894	1,077
Other real estate expenses, net	122	28
Other operating expenses	7,114	5,767
Total noninterest expenses	66,525	54,123
Income before income taxes	22,714	17,749
Income tax expense	5,819	4,982
Net income	$ 16,895	$ 12,767
Basic earnings per share (in dollars per share)	$ 1.23	$ 1.05
Diluted earnings per share (in dollars per share)	$ 1.21	$ 1.02
Weighted average common shares outstanding:
Basic (in shares)	13,733,131	12,116,459
Diluted (in shares)	13,968,585	12,462,138
Service charges on deposits
Noninterest income
Noninterest income	$ 542	$ 484
Credit card fees
Noninterest income
Noninterest income	7,602	6,048
Mortgage banking revenue
Noninterest income
Noninterest income	$ 15,955	$ 9,477

Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Statement [Abstract]
Deposits, related party	$ 1,772	$ 1,727

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 16,895	$ 12,767
Other comprehensive income (loss):
Unrealized gain (loss) on investment securities available for sale	868	(479)
Reclassification of realized (gain) loss on sales of investment securities available for sale	(26)	2
Unrealized loss on cash flow hedging derivative	(5)	(1)
Other comprehensive income (loss)	837	(478)
Income tax (expense) benefit relating to the items above	(229)	130
Other comprehensive income (loss)	608	(348)
Comprehensive income	$ 17,503	$ 12,419

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Initial public offering, common stock issued, net of costs and underwriting discount of $3.2 million	Initial public offering, common stock issued, net of costs and underwriting discount of $3.2 million Common Stock	Initial public offering, common stock issued, net of costs and underwriting discount of $3.2 million Additional Paid-in Capital
Beginning balance (in shares) at Dec. 31, 2017		11,537,196
Beginning balance at Dec. 31, 2017	$ 80,119	$ 115	$ 27,051	$ 53,200	$ (247)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	12,767			12,767
Unrealized loss on investment securities available for sale, net of income taxes	(346)				(346)
Unrealized loss on cash flow hedging derivative, net of income taxes	$ (2)				(2)
Stock options exercised, including tax benefit (in shares)	230,894	230,894
Stock options exercised, including tax benefit	$ 1,043	$ 2	1,307	(266)
Shares issued as compensation (in shares)		59,579
Shares issued as compensation	496	$ 1	495
Stock-based compensation	570		570
Shares sold (in shares)		16,000					1,834,310
Shares sold	198	$ 0	198			$ 19,764	$ 19	$ 19,745
Shares repurchased and retired (in shares)		(5,500)
Shares repurchased and retired	$ (45)	$ 0	(45)
Ending balance (in shares) at Dec. 31, 2018	13,672,479	13,672,479
Ending balance at Dec. 31, 2018	$ 114,564	$ 137	49,321	65,701	(595)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	16,895			16,895
Unrealized loss on investment securities available for sale, net of income taxes	612				612
Unrealized loss on cash flow hedging derivative, net of income taxes	$ (4)				(4)
Stock options exercised, including tax benefit (in shares)	221,710	221,710
Stock options exercised, including tax benefit	$ 593	$ 2	1,515	(924)
Shares issued as compensation (in shares)		29,133
Shares issued as compensation	301	$ 0	301
Stock-based compensation	795		795
Shares repurchased and retired (in shares)		(28,480)
Shares repurchased and retired	$ (371)	$ 0	(371)
Ending balance (in shares) at Dec. 31, 2019	13,894,842	13,894,842
Ending balance at Dec. 31, 2019	$ 133,331	$ 139	$ 51,561	$ 81,618	$ 13

Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2018
IPO \| Common Stock
Underwriting discount and offering costs	$ 3.2	$ 3.2

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities
Net income	$ 16,895,000	$ 12,767,000
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	2,791,000	2,140,000
Provision for mortgage put-back reserve	184,000	106,000
Provision for off balance sheet credit risk	173,000	152,000
Net amortization on investments	160,000	225,000
Furniture and equipment depreciation	1,113,000	1,085,000
Lease asset amortization	1,238,000	0
Stock-based compensation expense	795,000	570,000
Director and employee compensation paid in Company stock	301,000	496,000
Deferred income tax benefit	(839,000)	(141,000)
Amortization of debt issuance expense	30,000	32,000
(Gain) loss on sale of securities available for sale	(26,000)	2,000
Loss on sales of foreclosed real estate	0	21,000
Loss on disposal of premises and equipment	0	276,000
Mortgage banking revenue	(15,955,000)	(9,477,000)
Proceeds from sales of loans held for sale	556,640,000	354,417,000
Originations of loans held for sale	(593,189,000)	(337,122,000)
Changes in assets and liabilities:
Accrued interest receivable	(308,000)	(595,000)
Prepaid income taxes and taxes payable	81,000	1,529,000
Other assets	(418,000)	4,000
Accrued interest payable	236,000	481,000
Other liabilities	3,752,000	1,334,000
Net cash (used) provided by operating activities	(26,346,000)	28,302,000
Cash flows from investing activities
Purchases of securities available for sale	(38,587,000)	0
Proceeds from maturities, calls and principal paydowns of securities available for sale	22,119,000	6,044,000
Proceeds from sale of securities available for sale	3,280,000	345,000
Purchases of restricted investments	(1,463,000)	(134,000)
Net increase in loans receivable	(173,942,000)	(114,140,000)
Net purchases of premises and equipment	(303,000)	(1,735,000)
Proceeds from sales of foreclosed real estate	49,000	357,000
Net cash used by investing activities	(188,847,000)	(109,263,000)
Net increase (decrease) in:
Noninterest bearing deposits	49,518,000	45,624,000
Interest bearing deposits	220,662,000	4,717,000
Securities sold under agreements to repurchase	(3,332,000)	(7,928,000)
Federal funds purchased	(2,000,000)	0
Federal Home Loan Bank advances, net	30,222,000	2,000,000
Other borrowed funds	0	(2,000,000)
Repurchase of common stock	(371,000)	(45,000)
Proceeds from exercise of stock options	595,000	1,043,000
Proceeds from shares sold	0	198,000
Proceeds from initial public offering, net	0	19,764,000
Net cash provided by financing activities	295,294,000	63,373,000
Net increase (decrease) in cash and cash equivalents	80,101,000	(17,588,000)
Cash and cash equivalents, beginning of year	34,723,000	52,311,000
Cash and cash equivalents, end of year	114,824,000	34,723,000
Noncash investing and financing activities:
Loans transferred to foreclosed real estate	2,291,000	427,000
Change in unrealized gains (losses) on investments	842,000	(477,000)
Change in fair value of loans held for sale	1,420,000	4,000
Change in fair value of cash flow hedging derivative	(5,000)	(1,000)
Establishment of right of use asset	5,158,000	0
Establishment of lease liability	5,358,000	0
Cash paid during the period for:
Taxes	5,451,000	2,655,000
Interest	$ 15,606,000	$ 10,758,000

Nature of Business and Basis of Presentation

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Nature of Business and Basis of Presentation

Nature of Business

Capital Bancorp, Inc. is a Maryland corporation and bank holding company (the “Company”) for Capital Bank, N.A. (the “Bank”). The Company's primary operations are conducted by the Bank, which operates branches in Rockville, Columbia and North Bethesda, Maryland, Reston, Virginia, and the District of Columbia. The Bank is principally engaged in the business of investing in commercial, real estate, and credit card loans and attracting deposits. The Company originates residential mortgages for sale in the secondary market through Capital Bank Home Loans, our residential mortgage banking arm, and issues credit cards through OpenSky®, a secured, digitally-driven nationwide credit card platform.

The Company formed Church Street Capital, LLC (“Church Street Capital”) in 2014 to provide short-term secured real estate financing to Washington, D.C. area investors and developers that may not meet all Bank credit criteria.

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.

In September 2018, the Company completed its initial public offering (“IPO”) of 2,563,046 shares of its common stock at a price to the public of $12.50 per share, 1,834,310 shares of which were sold by the Company and 728,736 shares of which were sold by certain of the Company’s shareholders (the “selling shareholders”). The net proceeds to the Company from the IPO were $19.8 million after deducting the underwriting discount and offering expenses of $3.2 million. The Company did not receive any proceeds from the sales of shares by the selling shareholders.

Basis of Presentation

The accompanying consolidated financial statements include the activity of the Company and its wholly-owned subsidiaries, the Bank and Church Street Capital. All intercompany transactions have been eliminated in consolidation. The Company reports its activities as a four business segments: commercial banking; mortgage lending; credit cards; and corporate activities. 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. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and conform to general practices within the banking industry.

On August 15, 2018, the Company completed a four-for-one stock split of the Company's authorized, issued, and outstanding common stock, par value $.01 per share (the “Stock Split”). At the effective time of the Stock Split, each share of the Company's issued and outstanding common stock was automatically increased to four shares issued and outstanding. No fractional shares were issued in connection with the Stock Split. All share and share-related information presented in these consolidated financial statements have been retroactively adjusted to reflect the increased number of shares resulting from the Stock Split.

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 basis of the estimates is on historical experience and on various other assumptions that are believed to be reasonable under current circumstances, results of

Note 1 - Nature of Business and Basis of Presentation (continued)

which form the basis for making judgments about the carrying value of certain assets and liabilities that are not readily available from other sources. Estimates are evaluated on an ongoing basis. Actual results may differ from these estimates under different assumptions or conditions.

Cash and cash equivalents

For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest bearing deposits with banks and federal funds sold. Generally, federal funds are sold for one-day periods.

Investment securities

Investment securities are classified as available for sale and carried at fair value with unrealized gains and losses included in stockholders’ equity on an after-tax basis. Premiums and discounts on investment securities are amortized or accreted using the interest method. Changes in the fair value of debt securities available for sale are included in stockholder’s equity as unrealized gains and losses, net of the related tax effect. Unrealized losses are periodically reviewed to determine whether the loss represents an other than temporary impairment. Any unrealized losses judged to be other than a temporary impairment will be charged to income.

Loans held for sale

Mortgage loans originated and intended for sale are recorded at fair value, determined individually, as of the balance sheet date. Fair value is determined based on outstanding investor commitments, or in the absence of such commitments, based on current investor yield requirements. Gains and losses on loan sales are determined by the specific-identification method. The Company’s current practice is to sell residential mortgage loans on a servicing released basis, and, therefore, it has no intangible asset recorded for the value of such servicing. Interest on loans held for sale is credited to income based on the principal amounts outstanding.

Upon sale and delivery, loans are legally isolated from the Company and the Company has no ability to restrict or constrain the ability of third‑party investors to pledge or exchange the mortgage loans. The Company does not have the entitlement or ability to repurchase the mortgage loans or unilaterally cause third‑party investors to put the mortgage loans back to the Company. Unrealized and realized gains on loan sales are determined using the specific-identification method and are recognized through mortgage banking activity in the Consolidated Statements of Income.

The Company elected to measure loans held for sale at fair value to better align reported results with the underlying economic changes in value of the loans on the Company’s balance sheet.

Loans and the allowance for loan losses

Loans are stated at the principal amount outstanding, adjusted for deferred origination fees, deferred origination costs, discounts on loans acquired, and the allowance for loan losses. Interest is accrued based on the loan principal balances and stated interest rates. Origination fees and costs are recognized as an adjustment to the related loan yield using approximate interest methods. The Company generally discontinues the accrual of interest when any portion of the principal and interest is 90 days past due and collateral is insufficient to discharge the debt in full. Generally, interest payments on nonaccrual loans are recorded as a reduction of the principal balance.

Loans are considered impaired when, based on current information, management believes the Company will not collect all principal and interest payments according to contractual terms. Generally, loans are reviewed for impairment when the risk grade for a loan is downgraded to a classified asset category. The loans are evaluated for appropriate classification, accrual, impairment, and troubled debt restructure status. If collection of principal is evaluated as doubtful, all payments are applied to principal. A modification of a loan is considered a TDR when a borrower is experiencing financial difficulty and the modification constitutes a concession. The Company may consider interest rate reductions, changes to payment terms, extensions of maturities and/or principal reductions.

Loans are generally charged-off in part or in full when management determines the loan to be uncollectible. Factors for charge-off that may be considered include: repayments deemed to be projected beyond reasonable time frames, client bankruptcy and lack of assets, and/or collateral deficiencies.

The allowance for loan losses is estimated to adequately provide for probable future losses on existing loans. The allowance consists of specific and general components. For loans that are classified as impaired, an allowance is established when the collateral value, if the loan is collateral dependent, or the discounted cash flows of the impaired loan, is lower than the carrying value of that loan. The general component covers pools of nonclassified loans and is based on historical loss experience adjusted for qualitative factors. There may be an unallocated component of the allowance, which reflects the margin of the imprecision inherent in the underlying assumptions used in the method for estimating specific and general losses in the portfolio. Actual loan performance may differ from those estimates. A loss is recognized as a charge to the allowance when management believes that collection of the loan is unlikely. Collections of loans previously charged off are added to the allowance at the time of recovery.

The components of the allowance for loan losses represent an estimation done pursuant to ASC Topic 450, “Contingencies,” or ASC Topic 310,“Receivables.” Specific allowances are established in cases where management has identified significant conditions or circumstances related to a specific credit that management believes indicate the probability that a loss may be incurred. The process for determining an appropriate allowance for loan losses is based on a comprehensive, well-documented, and consistently applied analysis of the loan portfolio. The analysis considers significant factors that affect the collectibility of the portfolio and supports the loan losses estimated by this process. It is important to recognize that the related process, methodology, and underlying assumptions require a substantial degree of judgment.

Management believes that the allowance for loan losses is adequate; however, determination of the allowance is inherently subjective and requires significant estimates. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions. Evaluation of the potential effects of these factors on estimated losses involves a high degree of uncertainty, including the strength and timing of economic cycles and concerns over the effects of a prolonged economic downturn in the current cycle. In addition, various banking agencies, as an integral part of their examination process, and independent consultants engaged by the Bank, periodically review the Bank’s loan portfolio and allowance for loan losses. Such review may result in recognition of additions to the allowance based on their judgments of information available to them at the time of their examination. The review of the adequacy of the allowance for loan losses includes an assessment of the fair value adjustment for acquired loans in accordance with generally accepted accounting principles.

Premises and equipment

Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related property generally over two to seven years. Leasehold improvements are amortized over the estimated term of the respective leases, which may include renewal options where management has the positive intent to exercise such options, or the estimated useful lives of the improvements, whichever is less. Expenditures for maintenance, repairs, and minor replacements are charged to noninterest expenses as incurred. The costs of major renewals and betterments are capitalized, These costs would be included as a component of premises and equipment expenses on the Consolidated Statements of Operations.

Leases

During the first quarter of 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 applies a right-of-use (“ROU”) model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset and a liability to make lease payments. The Company has elected to apply the practical expedients permitting entities to not reassess: 1) whether any expired or existing contracts are or contain leases; 2) the lease classification for any expired or existing leases; and 3) initial direct costs for any existing leases. Additionally, as provided by ASU 2016-02, the Company has elected not to apply the recognition requirements of ASC 842 to short-term leases, defined as leases with a term of 12 months or less, and to recognize the lease payments in net income on short-term leases on a straight-line basis over the lease term.

We adopted the guidance using the modified retrospective approach on January 1, 2019 and elected the practical expedients for transition including the transition option provided in ASU 2018-11, Leases (Topic 842) Targeted Improvements, which allowed the Company to initially apply the new leases standard at the adoption date. Consequently, the reporting for the comparative periods presented continued to be in accordance with ASC Topic 840, Leases. Therefore, the 2018 financial results and disclosures have not been adjusted.

The Company is largely accounting for our existing operating leases consistent with prior guidance except for the incremental balance sheet recognition for leases. The adoption of this standard resulted in the Company recognizing lease right-of-use assets and related lease liabilities totaling $5.2 million and $5.4 million, respectively, as of January 1, 2019. The difference between the lease assets and the lease liabilities was $146 thousand of deferred rent, which was reclassified to lease liabilities, and the remainder was recorded as an adjustment to retained earnings in the amount of $54 thousand. The adoption of this ASU did not have a significant impact on the Company’s consolidated statement of income. Additional information is included in Note 6 - Leases.

Derivative Financial Instruments

The Company enters into commitments to fund residential mortgage loans (interest rate locks) with the intention of selling them in the secondary market. The Company also enters into forward sales agreements for certain funded loans and loan commitments. Unfunded commitments intended for loans held for sale and forward sales agreements are recorded at fair value with changes in fair value recorded as a component of mortgage banking revenue. Loans originated and intended for sale in the secondary market are carried at fair value. For pipeline loans which are not pre-sold to an investor, the Company manages the interest rate risk on rate lock commitments by entering into forward sale contracts, whereby the Company obtains the right to deliver securities to investors in the future at a specified price, Such contracts are accounted for as derivatives and are recorded at fair value as derivative assets or liabilities, with changes in fair value recorded in mortgage banking revenue.

The Company accounts for derivative instruments and hedging activities according to guidelines established in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 815-10, Accounting for Derivative Instruments and Hedging Activities, as amended. The Company recognizes all derivatives as either assets or liabilities on the balance sheet and measures those instruments at fair value. Changes in fair value of derivatives designated and accounted for as cash flow hedges, to the extent they are effective as hedges, are recorded in other comprehensive income, net of deferred taxes. Any hedge ineffectiveness would be recognized in the income statement line item pertaining to the hedged item.

Fair Value Measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. The degree of management judgment involved in determining the fair value of a financial instrument is dependent upon the availability of quoted market prices or observable market inputs. For financial instruments that are traded actively and have quoted market prices or observable market inputs, there is minimal subjectivity involved in measuring fair value. However, when quoted market prices or observable market inputs are not fully available, significant management judgment may be necessary to estimate fair value. In developing our fair value estimates, we maximize the use of observable inputs and minimize the use of unobservable inputs.

The fair value hierarchy defines Level 1 valuations as those based on quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 valuations include inputs based on quoted prices for similar assets or liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 valuations are based on at least one significant assumption not observable in the market, or significant management judgment or estimation, some of which may be internally developed.

Financial assets that are recorded at fair value on a recurring basis include investment securities available for sale, loans held for sale, and derivative financial instruments. Financial liabilities that are recorded at fair value on a recurring basis are comprised of derivative financial instruments. See the Fair Value note to our consolidated financial statements.

Income Taxes

The Company employs the asset and liability method of accounting for income taxes as required by ASC Topic 740, “Income Taxes.” Under this method, deferred tax assets and liabilities are determined based on differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities (i.e. temporary timing differences) and are measured at the enacted rates that will be in effect when these differences reverse. The Company utilizes statutory requirements for its income tax accounting, and limits risks associated with potentially problematic tax positions that may incur challenge upon audit, where an adverse outcome is more likely than not. Therefore, no provisions are necessary for either uncertain tax positions nor accompanying potential tax penalties and interest for underpayments of income taxes in the Company’s tax reserves. In accordance with ASC Topic 740, the Company may establish a valuation allowance against deferred tax assets in those cases where realization is less than certain.

Earnings per share

Earnings per share is computed by dividing net income available to common stockholders by the weighted average number of shares outstanding. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding, adjusted for the dilutive effect of stock options and restricted stock using the treasury stock method. At December 31, 2019 and 2018, there were 7,628 and 7,000 stock options, respectively, that were not included in the calculation as their effect would have been anti-dilutive. The following is a reconciliation of the numerators and denominators used in computing basic and diluted earnings per common share as adjusted for the Stock Split:



Earnings Per Share	For the Years Ended December 31,
	2019					2018
(dollars in thousands, except per share information)	Income		Weighted Average Shares	Per Share Amount		Income		Weighted Average Shares	Per Share Amount
Basic EPS
Net income available to common stockholders	$	16,895	13,733,131	$	1.23	$	12,767	12,116,459	$	1.05
Effect of dilutive securities	—		235,454			—		345,679
Dilutive EPS per common share	$	16,895	13,968,585	$	1.21	$	12,767	12,462,138	$	1.02

Comprehensive income

The Company reports as comprehensive income all changes in stockholders' equity during the year from sources other than stockholders. Other comprehensive income refers to all components (income, expenses, gains, and losses) of comprehensive income that are excluded from net income.

The Company's only two components of other comprehensive income are unrealized gains and losses on investment securities available for sale, net of income taxes, and unrealized gains and losses on cash flow hedges, net of income taxes. Information concerning the Company's accumulated other comprehensive income (loss) as of December 31, 2019, and 2018 are as follows (in thousands):



Comprehensive Income	For the Years Ended December 31,
(in thousands)	2019			2018
Unrealized gains (losses) on securities available for sale	$	18		$	(825	)
Deferred tax (expense) benefit	(5		)	227
Other comprehensive income (loss), net of tax	13			(598		)
Unrealized gains on cash flow hedges	—			5
Deferred tax expense	—			(2		)
Other comprehensive income, net of tax	—			3
Total accumulated comprehensive income (loss)	$	13		$	(595	)

Recently issued accounting pronouncements:

In June 2016, the FASB issued guidance to change the accounting for loan losses and modify the impairment model for certain debt securities. In October 2019, the FASB voted to delay implementation and the new standard is now effective for fiscal years beginning after December 15, 2022, including the interim periods within those fiscal years. The Company expects the provisions of this standard to impact the Company’s consolidated financial statements, in particular, the level of the reserve for loan losses. The Company is continuing to evaluate the extent of the potential impact and expects that portfolio composition and economic conditions at the time of adoption will be a factor.

The Company will apply the amendments to the ASU through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. While early adoption was permitted, the Company did not elect that option. In addition to our allowance for loan losses, the Company will also record an allowance for credit losses on held-to-maturity debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio’s composition and credit quality at the adoption date as well as economic conditions and forecasts at that time.

In August 2018, the FASB amended the Fair Value Measurement Topic 820 disclosure framework. These amendments include additions, removals and modifications to the fair value disclosure requirements in Topic 820, and are effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted on removed or modified disclosures. The Company does not expect these amendments to have a material effect on its financial statements.

In April 2019, the FASB issued codification improvements to ASU Topic 326 - Financial Instruments - Credit Loss, Topic 815 - Derivatives and Hedging, and Subtopic 825-10 - Financial Instruments. This codification provides technical corrections and clarifies issues related to fair value hedges. The Company early adopted this guidance upon issuance, and it did not have a material impact on the Company’s Consolidated Financial Statements.

In April 2019, the FASB issued guidance that clarifies and improves areas of guidance related to the recently issued standards on loan losses, hedging, and recognition and measurement of financial instruments. The amendments related to loan losses will be effective for the Company for reporting periods beginning after December 15, 2022. The amendments related to hedging were effective for the Company for interim and annual periods beginning after December 15, 2018. The amendments related to recognition and measurement of financial instruments were adopted by the Company during the first quarter of 2018. The Company does not expect these amendments to have a material effect on its financial statements.

In November 2019, the FASB issued guidance to defer the effective dates for private companies, not-for-profit organizations, and certain smaller reporting companies applying standards on current expected loan losses (CECL). The new effective dates will be fiscal years beginning after December 15, 2022 including interim periods within those fiscal years. In addition, the FASB issued guidance that addresses issues raised by stakeholders during the implementation of ASU 2016-13, Financial Instruments-loan losses (Topic 326): Measurement of loan losses on Financial Instruments. The amendments affect a variety of Topics in the Accounting Standards Codification. For entities that have not yet adopted the amendments in ASU 2016-13, the amendments are effective for fiscal years beginning after December 15, 2022 including interim periods within those fiscal years. Early adoption is permitted in any interim period as long as an entity has adopted the amendments in ASU 2016-13. The Company does not expect these amendments to have a material effect on its financial statements.

In December 2019, the FASB issued guidance to simplify accounting for income taxes by removing specific technical exceptions that often produce information investors have a hard time understanding. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The amendments are effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements.

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 the amounts reported in prior periods to conform to the current period presentation. The reclassifications had no effect on net income or total stockholders' equity.

Cash and Cash Equivalents	12 Months Ended
Cash and Cash Equivalents	Dec. 31, 2019
Cash and Cash Equivalents [Abstract]
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash and due from banks, interest bearing deposits and federal funds sold. The Bank is required by regulations to maintain an average cash reserve balance based on a percentage of deposits. At December 31, 2019 and 2018, the requirements were satisfied by amounts on deposit with the Federal Reserve Bank and cash on hand.

Investment Securities

12 Months Ended

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Investment Securities

The amortized cost and estimated fair value of investment securities at December 31, 2019 and 2018 are summarized as follows:



Investment Securities Available for Sale
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
(in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
December 31, 2019
U.S. government-sponsored enterprises	$	1,000	$	—	$	(1	)	$	999
Municipal	515		13		—			528
Corporate	2,542		46		(23		)	2,565
Mortgage-backed securities	56,754		117		(135		)	56,736
	$	60,811	$	176	$	(159	)	$	60,828

December 31, 2018
U.S. government-sponsored enterprises	$	17,496	$	—	$	(136	)	$	17,360
Municipal	517		—		(16		)	501
Corporate	2,908		28		(51		)	2,885
Mortgage-backed securities	26,836		46		(696		)	26,186
	$	47,757	$	74	$	(899	)	$	46,932

Proceeds from sales of securities sold during the year ended December 31, 2019 and 2018 were $3.3 million and $345 thousand respectively, and resulted in aggregate realized gains of $37 thousand and aggregate realized losses of $11 thousand for December 31, 2019 and aggregate realized losses of $2 thousand for the same period in 2018.

Information related to unrealized losses in the investment portfolio as of December 31, 2019 and 2018 are as follows:



Investment Securities Unrealized Losses
	Less than 12 months					12 months or longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
(in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
December 31, 2019
U.S. government-sponsored enterprises	$	—	$	—		$	999	$	(1	)	$	999	$	(1	)
Corporate	—		—			519		(23		)	519		(23		)
Mortgage-backed securities	21,487		(78		)	5,246		(57		)	26,733		(135		)
	$	21,487	$	(78	)	$	6,764	$	(81	)	$	28,251	$	(159	)

December 31, 2018
U.S. government-sponsored enterprises	$	496	$	(2	)	$	16,864	$	(134	)	$	17,360	$	(136	)
Municipal	—		—			501		(16		)	501		(16		)
Corporate	—		—			857		(51		)	857		(51		)
Mortgage-backed securities	2,294		(7		)	21,037		(689		)	23,331		(696		)
	$	2,790	$	(9	)	$	39,259	$	(890	)	$	42,049	$	(899	)

At December 31, 2019, there was one U.S. government-sponsored enterprise security, two corporate securities, and four mortgage-backed securities that had been in a loss position for greater than twelve months. Management believes that all unrealized losses have resulted from temporary changes in the interest rates and current market conditions and not as a result of credit deterioration. Management has the ability and the intent to hold these investment securities until maturity or until they recover in value.

A summary of pledged securities at December 31, 2019 and 2018 is shown below:



Pledged Securities
	For the Years Ended December 31,
	2019				2018
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Securities sold under agreements to repurchase	$	—	$	—	$	16,032	$	15,862
Federal Home Loan Bank advances	1,508		1,522		6,713		6,662
	$	1,508	$	1,522	$	22,745	$	22,524

Contractual maturities of U.S. government-sponsored enterprises and corporate securities at December 31, 2019 and 2018 are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.



Investment Securities - Contractual Maturities
	For the Years Ended December 31,
	2019				2018
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	1,542	$	1,518	$	16,496	$	16,377
Over one to five years	—		—		1,000		983
Over five to ten years	2,000		2,046		2,000		2,028
Over ten years	515		528		1,425		1,358
Mortgage-backed securities⁽¹⁾	56,754		56,736		26,836		26,186
	$	60,811	$	60,828	$	47,757	$	46,932

_______________


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

Loans Receivable

12 Months Ended

Dec. 31, 2019

Receivables [Abstract]

Loans Receivable

Major categories of loans are as follows:



Loan Categories
	December 31,
(in thousands)	2019			2018
Real estate:
Residential	$	427,926		$	407,844
Commercial	348,091			278,691
Construction	198,702			157,586
Commercial	151,109			122,264
Credit card	46,412			34,673
Other consumer	1,285			1,202
	1,173,525			1,002,260
Deferred origination fees, net	(2,404		)	(1,992		)
Allowance for loan losses	(13,301		)	(11,308		)
Loans receivable, net	$	1,157,820		$	988,960

The Company makes loans to customers located primarily in the Washington, D.C. metropolitan area. Although the loan portfolio is diversified, its performance will be influenced by the regional economy. The Company’s loan categories are described below.

Residential Real Estate Loans. One-to-four family mortgage loans are primarily on owner-occupied primary residences and, to a lesser extent, investor owned residences. Residential loans are originated through the commercial sales teams and Capital Bank Home Loan division. Residential loans also include home equity lines of credit. Owner-occupied residential real estate loans usually have fixed rates for five or seven years and adjust on an annual basis after the initial term based on a typical maturity of 30 years. Investor residential real estate loans are generally based on 25-year terms with a balloon payment due after five years. Generally, the required minimum debt service coverage ratio is 1.15. Residential real estate loans have represented a stable and growing portion of the loan portfolio.

Commercial Real Estate Loans. Commercial real estate loans are originated on owner-occupied and non-owner-occupied properties. These loans may be more adversely affected by conditions in the real estate markets or in the general economy. Commercial loans that are secured by owner-occupied commercial real estate and primarily collateralized by operating cash flows are also included in this category of loans. As of December 31, 2019, there were approximately $165.4 million of owner-occupied commercial real estate loans, representing approximately 47.5% of the commercial real estate portfolio. Commercial real estate loan terms are generally extended for 10 years or less and amortize generally over 25 years or less. The interest rates on commercial real estate loans have initial fixed rate terms that adjust typically at 5 years and origination fees are routinely charged for services. Personal guarantees from the principal owners of the business are generally required, supported by a review of the principal owners’ personal financial statements and global debt service obligations. The properties securing the portfolio are generally diverse in terms and type. This diversity helps reduce the exposure to adverse economic events that affect any single industry.

Construction Loans. Construction loans are offered within the Company’s Washington, D.C. and Baltimore, Maryland metropolitan operating areas to builders primarily for the construction of single-family homes and condominium and townhouse conversions or renovations and, to a lesser extent, to individuals. Construction loans typically have terms of 12 to 18 months, the Company generally transitions the end purchaser to permanent financing or re-underwriting and selling into the secondary market through Capital Bank Home Loan. According to underwriting standards, the ratio of loan principal to collateral value, as established by an independent appraisal, cannot exceed 75% for investor-owned and 80% for owner-occupied properties. Semi-annual stress testing of the construction loan portfolio is conducted, and underlying real estate conditions are closely monitored as well as the borrower’s trends of sales valuations as compared to underwriting valuations as part of the ongoing risk management efforts. The borrowers’ progress in construction buildout is closely monitored and the original underwriting guidelines for construction milestones and completion timelines are strictly enforced.

Commercial Business Loans. In addition to other loan products, general commercial loans, including commercial lines of credit, working capital loans, term loans, equipment financing, letters of credit and other loan products are offered, primarily in target markets, and underwritten based on each borrower’s ability to service debt from income. These loans are primarily made based on the identified cash flows of the borrower and secondarily, on the underlying collateral provided by the borrower. Most commercial business loans are secured by a lien on general business assets including, among other things, available real estate, accounts receivable, promissory notes, inventory and equipment, and personal guaranties from the borrower or other principal are generally obtained.

Credit Cards. Through the OpenSky® credit card division, the Company offers credit cards on a nationwide basis to under-banked populations and those looking to rebuild their credit scores are provided through a fully digital and mobile platform. Substantially all of the lines of credit are secured by a noninterest bearing demand account at the Bank in an amount equal to the full credit limit of the credit card. In addition, using a proprietary scoring model, which considers credit score and repayment history (typically a minimum of six months of on-time repayments, but ultimately determined on a case-by-case basis), the Bank has recently begun to offer certain customers an unsecured line in excess of their secured line of credit. Approximately $43.3 million and $32.5 million of the credit card balances were secured by savings deposits held by the Bank as of December 31, 2019 and 2018, respectively.

Other Consumer Loans. To a very limited extent and typically as an accommodation to existing customers, personal consumer loans such as term loans, car loans or boat loans are offered.

Loans acquired through acquisitions are recorded at estimated fair value on their purchase date with no carryover of the related allowance for loan losses. In estimating the fair value of loans acquired, certain factors were considered, including the remaining lives of the acquired loans, payment history, estimated prepayments, estimated loss ratios, estimated value of the underlying collateral, and the net present value of cash flows expected. Discounts on loans that were not considered impaired at acquisition were recorded as an accretable discount, which will be recognized in interest income over the terms of the related loans. For loans considered to be impaired, the difference between the contractually required payments and expected cash flows was recorded as a nonaccretable discount. The remaining nonaccretable discounts on loans acquired were $285 thousand and $354 thousand as of December 31, 2019 and 2018, respectively. Loans with nonaccretable discounts had a carrying value of $1.1 million and $1.3 million as of December 31, 2019 and 2018, respectively.

The activity in the accretable discounts on loans acquired was as follows:



Accretable Discounts on Loans Acquired
	December 31,
(in thousands)	2019			2018
Accretable discount at beginning of period	$	438		$	543
Accretion and payoff of loans	(9		)	(105		)
Accretable discount at end of period	$	429		$	438

The allowance for loan losses consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-impaired loans and is based on historical loss experience adjusted for current economic factors. The following tables present, by class and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans as of December 31, 2019 and 2018.



Allowance for Loan Losses
(in thousands)			Provision for Loan Losses									Allowance for Loan Losses Ending Balance Evaluated for Impairment:				Outstanding Loan Balances Evaluated for Impairment:
December 31, 2019	Beginning Balance		Provision for Loan Losses		Charge-Offs			Recoveries		Ending Balance		Individually		Collectively		Individually		Collectively
Real estate:
Residential	$	3,541	$	634	$	(40	)	$	—	$	4,135	$	—	$	4,135	$	2,192	$	425,734
Commercial	3,003		556		—			13		3,572		—		3,572		1,433		346,658
Construction	2,093		575		—			—		2,668		—		2,668		—		198,702
Commercial	1,578		299		(331		)	2		1,548		119		1,429		474		150,635
Credit card	1,084		726		(461		)	19		1,368		—		1,368		—		46,412
Other consumer	9		1		—			—		10		—		10		—		1,285
	$	11,308	$	2,791	$	(832	)	$	34	$	13,301	$	119	$	13,182	$	4,099	$	1,169,426

December 31, 2018
Real estate:
Residential	$	3,137	$	522	$	(121	)	$	3	$	3,541	$	—	$	3,541	$	2,120	$	405,724
Commercial	2,860		13		(22		)	152		3,003		—		3,003		1,486		277,205
Construction	1,646		447		—			—		2,093		—		2,093		—		157,586
Commercial	1,497		194		(147		)	34		1,578		262		1,316		749		121,515
Credit card	885		963		(806		)	42		1,084		—		1,084		—		34,673
Other consumer	8		1		—			—		9		—		9		—		1,202
	$	10,033	$	2,140	$	(1,096	)	$	231	$	11,308	$	262	$	11,046	$	4,355	$	997,905

Note 4 - Loans Receivable (continued)

Past due loans, segregated by delinquency and class of loans, as of December 31, 2019 and 2018 were as follows:



Loans Past Due	Loans 30-89 Days Past Due		Loans 90 or More Days Past Due		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 or More days Past Due		Nonaccrual Loans

(in thousands)
December 31, 2019
Real estate:
Residential	$	704	$	2,436	$	3,140	$	424,786	$	427,926	$	374	$	2,192
Commercial	275		1,671		1,946		346,145		348,091		237		1,433
Construction	756		—		756		197,946		198,702		—		—
Commercial	172		353		525		150,584		151,109		—		474
Credit card	5,526		8		5,534		40,878		46,412		9		—
Other consumer	—		—		—		1,285		1,285		—		—
	$	7,433	$	4,468	$	11,901	$	1,161,624	$	1,173,525	$	620	$	4,099

Acquired loans included above	$	305	$	1,243	$	1,548	$	4,873	$	6,421	$	464	$	880

December 31, 2018
Real estate:
Residential	$	1,070	$	2,081	$	3,151	$	404,693	$	407,844	$	235	$	2,207
Commercial	1,746		1,431		3,177		275,514		278,691		—		1,486
Construction	—		—		—		157,586		157,586		—		—
Commercial	612		398		1,010		121,254		122,264		—		749
Credit card	3,771		2		3,773		30,900		34,673		2		—
Other consumer	—		—		—		1,202		1,202		—		—
	$	7,199	$	3,912	$	11,111	$	991,149	$	1,002,260	$	237	$	4,442

Acquired loans included above	$	521	$	488	$	1,009	$	7,275	$	8,284	$	235	$	582

Note 4 - Loans Receivable (continued)

Impaired loans also include acquired loans for which management has recorded a nonaccretable discount. Impaired loans as of December 31, 2019 and 2018 were as follows:



Impaired Loans
	Unpaid Contractual Principal Balance		Recorded Investment with no Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment		Interest Recognized
(in thousands)
December 31, 2019
Real estate
Residential	$	2,309	$	2,192	$	—	$	2,192	$	—	$	2,510	$	8
Commercial	1,477		1,433		—		1,433		—		1,620		18
Construction	—		—		—		—		—		—		—
Commercial	574		201		273		474		119		777		9
	$	4,360	$	3,826	$	273	$	4,099	$	119	$	4,907	$	35

Acquired loans included above	$	1,148	$	880	$	—	$	880	$	—	$	1,164	$	18

December 31, 2018
Real estate
Residential	$	2,411	$	2,120	$	—	$	2,120	$	—	$	2,564	$	28
Commercial	1,551		1,486		—		1,486		—		1,591		—
Construction	—		—		—		—		—		140		—
Commercial	856		363		386		749		262		1,270		—
	$	4,818	$	3,969	$	386	$	4,355	$	262	$	5,565	$	28

Acquired loans included above	$	775	$	497	—		$	497	$	—	$	—	$	—

There were $159 thousand and $221 thousand, respectively, of loans secured by one to four family residential properties in the process of foreclosure as of December 31, 2019 and 2018.

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 the general economic conditions in the Company’s market.

The Company utilizes a risk grading matrix to assign a risk grade to each of its loans. A description of the general characteristics of loans characterized as classified is as follows:

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.

Note 4 - Loans Receivable (continued)

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 inherent as 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.

The following table presents the balances of classified loans based on the risk grade. The Company grades all credit cards loans as Pass. Classified loans include Special Mention, Substandard, and Doubtful loans:



Classified Loans
(in thousands)	Pass⁽¹⁾		Special Mention		Substandard		Doubtful		Total
December 31, 2019
Real estate:
Residential	$	425,661	$	—	$	2,265	$	—	$	427,926
Commercial	340,313		6,345		1,433		—		348,091
Construction	198,702		—		—		—		198,702
Commercial	145,178		4,505		1,426		—		151,109
Credit card	46,412		—		—		—		46,412
Other consumer	1,285		—		—		—		1,285
Total	$	1,157,551	$	10,850	$	5,124	$	—	$	1,173,525

December 31, 2018
Real estate:
Residential	$	405,532	$	118	$	2,194	$	—	$	407,844
Commercial	274,247		2,958		1,486		—		278,691
Construction	154,643		843		2,100		—		157,586
Commercial	117,670		3,844		750		—		122,264
Credit card	34,673		—		—		—		34,673
Other consumer	1,202		—		—		—		1,202
Total	$	987,967	$	7,763	$	6,530	$	—	$	1,002,260

________________________

⁽¹⁾Pass includes loans graded exceptional, very good, good, satisfactory and pass/watch

Note 4 - Loans Receivable (continued)

Impaired loans also include certain loans that have been modified in troubled debt restructurings (“TDRs”) where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months. The status of TDRs is as follows:



Troubled Debt Restructurings
	Number of Contracts	Recorded Investment
(dollars in thousands)	Number of Contracts	Performing		Nonperforming		Total
December 31, 2019
Real estate:
Residential	3	$	—	$	145	$	145
Commercial	2	—		314		314
Total	5	$	—	$	459	$	459

Acquired loans included above	3	$	—	$	145	$	145

December 31, 2018
Real estate:
Residential	3	$	—	$	145	$	145
Commercial	1	—		139		139
Total	4	$	—	$	284	$	284

Acquired loans included above	3	$	—	$	145	$	145

During the year ended December 31, 2019, the Company added one TDR which had a recorded investment of $198 thousand. Of the five loans designated as troubled debt restructure at December 31, 2019, two loans had a principal payment adjustment and three loans had changes in interest and payment terms. The Company had no defaulted TDR loans in the twelve months ended December 31, 2019. Of the four loans designated as troubled debt restructured at December 31, 2018, three loans were classified as TDR due to changes in interest rates and payment terms, and one loan was due to a change in interest rate, payment terms and a principal reduction. There were three restructured loans charged off in the amount of $291 thousand and two performing restructured loans paid off for $3.2 million during the year ended December 31, 2018.

Note 4 - Loans Receivable (continued)

Outstanding loan commitments were as follows:



Loan Commitments
	For the Years Ended December 31,
(in thousands)	2019		2018
Unused lines of credit
Commercial	$	41,346	$	52,083
Commercial real estate	26,507		8,980
Residential real estate	13,754		12,853
Home equity	26,407		27,243
Secured credit card	37,517		29,142
Personal	43		126
Construction commitments:
Residential real estate	96,807		72,424
Commercial real estate	18,192		6,358
	$	260,573	$	209,209

Commitments to originate residential loans held for sale	$	2,646	$	647

Letters of credit	$	5,305	$	6,216

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 draw upon their lines in full at any time. Loan commitments generally have variable interest rates, fixed expiration dates, and may require payment of a fee. Letters of credit are conditional commitments issued us to guarantee the performance of a customer to a third party. In the event of nonperformance by the customer in accordance with the terms of the agreement with the third party, the Company would be required to fund the commitment.

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 made on the same terms, including collateral, as outstanding loans. The Company is not aware of any accounting loss to be incurred by funding these loan commitments.

As of December 31, 2019 and 2018, respectively, the Company had an allowance for off-balance-sheet credit risk of $1.2 million and $1.1 million, recorded in other liabilities on the consolidated balance sheet.

Note 4 - Loans Receivable (continued)

The Company maintains a reserve for off balance sheet items such as unfunded lines of credit. Activity for this account is as follows:



Off Balance Sheet Reserve
(in thousands)	2019		2018
Balance at beginning of period	$	1,053	$	901
Add: Provision	173		152
Add: Recoveries	—		—
Less: Charge-offs	—		—
Balance at end of period	$	1,226	$	1,053

The Company makes representations and warranties that loans sold to investors meet their program's 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 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. Activity in this reserve is as follows for the periods presented:



Mortgage Loan Put-back Reserve
(in thousands)	2019			2018
Balance at beginning of period	$	501		$	457
Add: Provision	184			106
Add: Recoveries	—			—
Less: Charge-offs	(109		)	(62		)
Balance at end of period	$	576		$	501

Premises and Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Premises and Equipment

Premises and equipment and the related depreciation and amortization consist of the following:



Premises and Equipment
(in thousands)	2019		2018
Leasehold improvements	$	1,688	$	1,686
Furniture and equipment	4,622		4,430
Vehicle	54		54
Software	2,517		2,405
Construction in progress	—		19
	8,881		8,594
Less: Accumulated depreciation and amortization	6,709		5,619
Premises and equipment	2,172		2,975
Net lease asset	3,920		—
Premises and equipment, net	$	6,092	$	2,975

Depreciation and amortization expense	$	1,113	$	1,085

Lease Lease

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Lease

Leases

On January 1, 2019, the Company adopted ASU 2016-02, Leases, as further explained in Note 1 - Nature of Business and Basis of Presentation. 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. As of January 1, 2019, the Company had leased five of its full service branches and five other locations for corporate/administration activities, operations, and loan production. All property leases under lease agreements have been 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 weighted average discount rate used was 2.24%. 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 December 31, 2019, the Company’s lease ROU assets and related lease liabilities were $3.9 million and $4.3 million, respectively, and have remaining terms ranging from 1 - 6 years, including extension options that the Company is reasonably certain will be exercised. As of December 31, 2019, the Company had not entered into any material leases that have not yet commenced. The Company’s lease information is summarized as follows:



Leases
(in thousands)	December 31, 2019
Lease Right of Use Asset
Lease asset	5,158
Less: Accumulated amortization	(1,238		)
Net lease asset	3,920

Lease Liability
Lease liability	$	5,358
Less: Accumulated amortization	(1,067		)
Net lease liability	$	4,291

Note 6 - Leases (continued)

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



Lease Payment Obligations
(in thousands)	December 31, 2019
Amounts due in:
2020	$	1,265
2021	1,281
2022	921
2023	744
2024	420
Total lease payments	$	4,631

Operating lease and rent expense was $1.3 million and $1.5 million for the years ended December 31, 2019 and 2018, respectively.

Derivative Financial Instruments

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

As part of its mortgage banking activities, the Company enters into interest rate lock commitments, which are commitments to originate loans whereby the interest rate on the loan is determined prior to funding and the customers have locked into that interest rate. The Company then either locks the loan and rate in with an investor and commits to deliver the loan if settlement occurs (Best Efforts) or commits to deliver the locked loan to an investor in a binding (Mandatory) delivery program. Certain loans under rate lock commitments are covered under forward sales contracts. Forward sales contracts are recorded at fair value with changes in fair value recorded in mortgage banking revenue. Interest rate lock commitments and commitments to deliver loans to investors are considered derivatives. The market value of interest rate lock commitments and best efforts contracts are not readily ascertainable with precision because they are not actively traded in stand-alone markets. The Company determines the fair value of rate lock commitments and delivery contracts by measuring the fair value of the underlying asset, which is impacted by current interest rates and takes into consideration the probability that the rate lock commitments will close or will be funded.

On January 7, 2015, the Company entered into an interest rate swap transaction with a notional amount of $2 million. The swap qualifies as a derivative and is designated as a hedging instrument. The swap fixed the interest rate the Company paid on the floating rate junior subordinated debentures for four years beginning on March 16, 2015 and matured on March 16, 2019. Based on the notional amount, the Company paid its counterparty quarterly interest at a fixed rate, and counterparty paid the Company interest at a rate of three‑month LIBOR plus 1.87%.

The following table reports the commitment and fair value amounts on the outstanding derivatives:



Derivatives
(in thousands)	December 31, 2019			December 31, 2018
Notional amount of open forward sales agreements	$	61,000		$	25,000
Fair value of open forward delivery sales agreements	(125		)	(253		)
Notional amount of open mandatory delivery commitments	22,888			4,256
Fair value of open mandatory delivery commitments	115			59
Notional amount of interest rate lock commitments	32,365			18,776
Fair value of interest rate lock commitments	122			108
Fair value of interest rate swap	—			5

Interest Bearing Deposits

12 Months Ended

Dec. 31, 2019

Deposits [Abstract]

Interest Bearing Deposits

Interest-Bearing Deposits

Major categories of interest bearing deposits are as follows:



Interest-Bearing Deposits
(in thousands)	2019		2018
Interest-bearing demand accounts	$	174,166	$	85,747
Money market accounts	429,078		288,896
Savings	3,675		2,866
Certificates of deposit of $250,000 or more	115,311		99,412
Other time deposits	211,414		236,060
Total interest-bearing deposits	$	933,644	$	712,981

The aggregate amount of brokered certificates of deposit was $88.8 million and $114.3 million at December 31, 2019 and 2018, respectively. The aggregate amount of Certificate of Deposit Account Registry Service (“CDARS”) deposits was $5.0 million and $45.1 million at December 31, 2019 and 2018, respectively. As of December 31, 2019, our certificates of deposit from listing services amounted to $78.2 million or 6.4% of our deposits.

As of December 31, 2019, certificates of deposit mature as follows:



Maturities of Certificates of Deposit
(in thousands)
2020	$	182,379
2021	135,355
2022	7,522
2023	673
2024, and thereafter	796
	$	326,725

Securities Sold Under Agreements to Repurchase

12 Months Ended

Dec. 31, 2019

Disclosure of Repurchase Agreements [Abstract]

Securities Sold Under Agreements to Repurchase

The Company formerly sold securities under repurchase agreements to provide cash management services to commercial account customers. These borrowings are summarized as follows:



Securities Sold Under Agreements to Repurchase
(dollars in thousands)	2019			2018
Average amount outstanding	$	1,287		$	10,596
Average rate paid during the year	1.75		%	1.38		%
Maximum amount outstanding at month end	$	3,400		$	12,445

Investment securities pledged to secure the underlying agreements at year end:
Amortized cost	$	—		$	16,032
Fair value	—			15,862

Borrowed Funds

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Borrowed Funds

As of December 31, 2019 and 2018, the Company was indebted as follows:



Borrowed Funds
	2019					2018
(dollars in thousands)	Balance			Interest		Balance			Interest
Correspondent Banks	—			—	%	2,000			3.28	%
Total - Federal funds purchased	$	—				$	2,000

FHLB principal reducing advances due May 10, 2022	$	32,222		2.40	%	$	—		—	%
FHLB advance due March 25, 2019	—			—	%	2,000			4.26	%
Total - FHLB advances	$	32,222				$	2,000

Junior subordinated debentures due June 15, 2036	2,062			3.76	%	2,062			4.68	%
Other subordinated notes due December 1, 2025	13,500			6.95	%	13,500			6.95	%
Less: Unamortized debt issuance costs	(139		)			(169		)
Total - Other borrowed funds	$	15,423				$	15,393

Federal Home Loan Bank Advances

The Federal Home Loan Bank fixed rate advance requires a principal reduction and accrued interest payment on a monthly basis.

Junior subordinated debentures

In June 2006, the Company formed Capital Bancorp (MD) Statutory Trust I (the “Trust”) and on June 15, 2006, the Trust issued 2,000 floating Rate Capital Securities (the “Capital Securities”) with an aggregate liquidation value of $2,000,000 to a third party in a private placement. Concurrent with the issuance of the Capital Securities, the Trust issued trust common securities to the Company in the aggregate liquidation value of $62,000.

The proceeds of the issuance of the Capital Securities and trust common securities were invested in the Company’s Floating Rate Junior Subordinated Deferrable Interest Debentures (the “Floating Rate Debentures”). The Floating Rate Debentures for the Trust will mature on June 15, 2036, which may be shortened if certain conditions are met (including the Company having received prior approval of the Board of Governors of the Federal Reserve System and any other required regulatory approvals). These Floating Rate Debentures, which are the only assets of the Trust, are subordinate and junior in right of payment to all present and future senior indebtedness (as defined in the Indenture dated June 15, 2006) of the Company. The Floating Rate Debentures for the Trust accrue interest at a floating rate equal to the three-month LIBOR plus 1.89%, payable quarterly. As of December 31, 2019 and 2018, the rate for the Trust was 3.76% and 4.68%, respectively. The quarterly distributions on the Capital Securities will be paid at the same rate that interest is paid on the Floating Rate Debentures.

The Company has fully and unconditionally guaranteed the Trust’s obligation under the Capital Securities. The Trust must redeem the Capital Securities when the Floating Rate Debentures are paid at maturity or upon any earlier prepayment of the Floating Rate Debentures. The Floating Rate Debentures may be prepaid if certain events occur, including a change in the tax status or regulatory capital treatment of the Capital Securities, or a change in existing laws that requires the Trust to register as an investment company.

The junior subordinated debentures are treated as Tier 1 capital, to a limited extent, by the Federal Reserve.

Note 10 - Borrowed Funds (Continued)

Other subordinated notes

On November 24, 2015, the Company issued $13.5 million of subordinated notes. The notes mature on December 1, 2025 and are all callable December 1, 2020. The notes bear interest at 6.95% for the first five years, then adjust to the three‑month LIBOR plus 5.33% adjusted on March 1, June 1, September 1, and December 1 of each year. Interest is payable quarterly. There were related debt issuance costs incurred totaling $278,231. The costs are amortized to interest expense through the maturity date of the notes.

Available lines of credit

The Company has available lines of credit of $28.0 million with other correspondent banks. There were no outstanding line of credit balances at December 31, 2019. At December 31, 2018, $2.0 million was outstanding, and was paid off on January 2, 2019.

The Company may borrow up to 25% of its assets from the FHLB, based on collateral available to pledge to secure the borrowings. Borrowings from the FHLB are secured by a portion of the Company’s loan and/or investment portfolio. As of December 31, 2019 and 2018, the Company had pledged loans providing borrowing capacity of $193.7 million and $235.2 million, respectively. As of December 31, 2019 and 2018, the Company had pledged investment securities with a fair value of $1.5 million and $6.7 million, respectively, to the FHLB. As of December 31, 2019 and 2018, the Company had available borrowing capacity, net of advances and amounts pledged for letters of credit, from the FHLB of $140.5 million and $185.6 million, respectively.

As of December 31, 2019 and 2018, the Company had pledged commercial loans to the Federal Reserve Bank of Richmond to provide a borrowing capacity totaling $12.5 million and $13.1 million, respectively, under its discount window program. There were no advances outstanding under this facility as of December 31, 2019 and 2018.

The Company limits its certificate of deposit funding through a financial network to 15% of the Bank’s assets, or approximately $209.5 million and $161.2 million as of December 31, 2019 and 2018, respectively. The balance outstanding was $88.8 million and $114.3 million as of December 31, 2019 and 2018, respectively.

Retirement Plan	12 Months Ended
Retirement Plan	Dec. 31, 2019
Retirement Benefits [Abstract]
Retirement Plan	Retirement Plan The Company provides a defined contribution plan qualifying under Section 401(k) of the Internal Revenue Code to eligible employees. The Company contributes 3% of eligible compensation on behalf of all full‑time employees up to limits prescribed by the Internal Revenue Code. The Company’s contribution to the plan was $691 thousand in 2019 and $553 thousand in 2018.

Related-Party Transactions

12 Months Ended

Dec. 31, 2019

Related-Party Transactions

Certain executive officers and directors of the Company and Bank, and companies with which they are affiliated, are clients of and have banking transactions with the Company in the ordinary course of business. These transactions are conducted on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with persons not related to the Company.

Note 12 - Related-Party Transactions (continued)

Activity in related-party loans during 2019 and 2018 is shown below:



Related Party Loans
(in thousands)	2019			2018
Balance at beginning of year	$	13,221		$	16,268
Add: New loans	14,583			2,093
Less: Amounts collected	(5,692		)	(3,588		)
Add (deduct): Relationship changes	—			(1,552		)
Balance at end of year	$	22,112		$	13,221

Deposits from officers and directors and their related interests were $141.3 million at December 31, 2019, and $155.8 million at December 31, 2018.

A director of the Company owns an interest in an entity from which the Company leases space for one of its Rockville, Maryland locations. Payments made in accordance with the lease were $74 thousand and $566 thousand in 2019 and 2018, respectively. The decrease in 2019 lease payments is due to the fact that the Company reduced the amount of space leased.

Company directors, or their related interests, held $1.0 million of the convertible subordinated notes outstanding as of December 31, 2019 and 2018. This note carries a fixed rate of interest until December 1, 2020, after which it converts to variable rate.

Company directors, or their related interests, held $171 thousand and $4.5 million of participation loans from the Bank as of December 31, 2019 and 2018, respectively. Company and Bank directors, or their related interests, held $364 thousand and $2.0 million of participation loans from Church Street Capital as of December 31, 2019 and 2018, respectively.

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

- Income Taxes

The components of income tax expense are as follows:



Income Tax Expense
	For the Years Ended December 31,
(in thousands)	2019			2018
Current:
Federal	$	5,151		$	3,696
State	1,507			1,427
Total current expense	6,658			5,123
Deferred tax benefit	(839		)	(141		)
Total income tax expense	$	5,819		$	4,982

The components of the net deferred tax asset at December 31, 2019 and 2018 are:



Net Deferred Tax Asset
(in thousands)	2019		2018
Deferred tax assets:
Allowance for loan and credit losses	$	3,977	$	3,384
Reserve for recourse on mortgage loans sold	158		138
Nonaccrual interest	19		63
Foreclosed real estate write-downs	3		3
Stock-based compensation	251		239
Long-term incentive program	266		189
Core deposit intangible	21		24
Unrealized loss on investment securities available for sale	—		227
Net operating loss carryforward	178		244
	4,873		4,511
Deferred tax liabilities:
Unrealized gains on investment securities available for sale	5		—
Unrealized gain on cash flow hedging derivative	—		2
Unrealized gain on loans held for sale	72		51
Accumulated depreciation	355		516
Deferred casualty gain	1		1
Other	—		43
	433		613
Net deferred tax asset before valuation allowance	4,440		3,898
Less: Valuation allowance	177		244
Net deferred tax asset	$	4,263	$	3,654

Note 13 - Income Taxes (continued)

The differences between the federal income tax rate and the effective tax rate for the Company are reconciled as follows:



Reconciliation of Federal Tax Rate to the Effective Rate
	2019		2018
Statutory federal income tax rate	21.00	%	21.00	%
Increase (decrease) resulting from:
State income taxes, net of federal income tax benefit	6.02		6.35
Nondeductible expenses	0.73		0.42
Tax exempt income	(0.03	)	(0.04	)
Other	(2.10	)	0.34
Effective Tax Rate	25.62	%	28.07	%

Deferred tax assets represent the future tax benefit of deductible differences and, if it is more likely than not that a tax asset will not be realized, a valuation allowance is required to reduce the net deferred tax assets to net realizable value. As of December 31, 2019, management has determined that it is more likely than not that the majority of the deferred tax asset from continuing operations will be realized. At December 31, 2019 and 2018, a valuation allowance of $177 thousand and $244 thousand was recognized, respectively, for a State of Maryland net operating loss carryforward that may not be realizable.

The Company does not have material uncertain tax positions and did not recognize any adjustments for unrecognized tax benefits. The Company remains subject to examination of income tax returns for the years ending after December 31, 2015 .

Capital Standards

12 Months Ended

Dec. 31, 2019

Banking and Thrift [Abstract]

Capital Standards

The Company and Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weighting, and other factors.

Quantitative measures established and defined by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of Total, Tier 1 and Common Equity Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. As of December 31, 2019 and 2018, the capital levels of the Company and the Bank substantially exceeded all applicable capital adequacy requirements.

Note 14 - Capital Standards (continued)

As of December 31, 2019 the most recent notification from the OCC has categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain ratios as set forth in the table. There have been no conditions or events since that notification that management believes have changed the Bank’s category.

The following table presents actual and required capital ratios as of December 31, 2019 and 2018 for the Bank under the Basel III Capital Rules. The minimum required capital amounts presented include the minimum required capital levels as of December 31, 2019 and 2018 based on the phase-in provisions of the Basel III Capital Rules. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. Based on recent changes to the Federal Reserve’s definition of a “Small Bank Holding Company” that increased the threshold to $3 billion in assets, the Company is not currently subject to separate minimum capital measurements. At such time as the Company reaches the $3 billion asset level, it will again be subject to capital measurements independent of the Bank. For comparison purposes, the Company’s ratios are presented in the following table as well, all of which would have exceeded the “well-capitalized” level had the Company been subject to separate capital minimums.



Regulatory Capital
	Actual				Minimum Capital Adequacy				To Be Well Capitalized				Full Phase In of Basel III
(Dollar amounts in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2019
The Company
Tier 1 leverage ratio (to average assets)	$	135,380	9.96	%	$	54,397	4.00	%	N/A		N/A		$	67,996	5.00	%
Tier 1 capital (to risk-weighted assets)	135,380		12.31	%	66,011		6.00	%	N/A		N/A		88,015		8.00	%
Common equity tier 1 capital ratio (to risk-weighted assets)	133,318		12.12	%	$	49,508	4.50	%	N/A		N/A		71,512		6.50	%
Total capital ratio (to risk-weighted assets)	149,142		13.56	%	$	88,015	8.00	%	N/A		N/A		110,018		10.00	%

The Bank
Tier 1 leverage ratio (to average assets)	$	114,613	8.65	%	$	53,005	4.00	%	$	66,256	5.00	%	$	66,256	5.00	%
Tier 1 capital (to risk-weighted assets)	114,613		10.73	%	64,093		6.00	%	85,458		8.00	%	85,458		8.00	%
Common equity tier 1 capital ratio (to risk-weighted assets)	114,613		10.73	%	48,070		4.50	%	69,434		6.50	%	69,434		6.50	%
Total capital ratio (to risk-weighted assets)	127,976		11.98	%	85,458		8.00	%	106,822		10.00	%	106,822		10.00	%

December 31, 2018
The Company
Tier 1 leverage ratio (to average assets)	$	117,220	10.76	%	$	43,575	4.00	%	N/A		N/A		$	43,575	4.00	%
Tier 1 capital (to risk-weighted assets)	117,220		12.95	%	71,259		7.88	%	N/A		N/A		76,914		8.50	%
Common equity tier 1 capital ratio (to risk-weighted assets)	115,158		12.73	%	57,686		6.38	%	N/A		N/A		63,341		7.00	%
Total capital ratio (to risk-weighted assets)	128,544		14.21	%	89,356		9.88	%	N/A		N/A		95,012		10.50	%

The Bank
Tier 1 leverage ratio (to average assets)	$	96,122	9.06	%	$	42,445	4.00	%	$	53,056	5.00	%	$	42,445	4.00	%
Tier 1 capital (to risk-weighted assets)	96,122		11.00	%	68,822		7.88	%	69,914		8.00	%	74,284		8.50	%
Common equity tier 1 capital ratio (to risk-weighted assets)	96,122		11.00	%	55,713		6.38	%	56,805		6.50	%	61,175		7.00	%
Total capital ratio (to risk-weighted assets)	107,061		12.25	%	86,301		9.88	%	87,393		10.00	%	91,763		10.50	%

- Definition

The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time.

+ References

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-Section 50
-Paragraph 1H
-URI http://asc.fasb.org/extlink&oid=84167132&loc=d3e65071-112826

+ Details

Stock-Based Compensation

12 Months Ended

Dec. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Compensation cost is recognized for stock options and restricted stock awards issued to employees. Compensation cost is measured as the fair value of these awards on their date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used as the fair value of restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period for stock option awards and as the restriction period for restricted stock awards. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award.

The expense recognition of employee stock option and restricted stock awards resulted in net expense of approximately $858 thousand and $724 thousand during the years ended December 31, 2019 and 2018, respectively.

All share and per common share amounts have been adjusted to reflect the Stock Split. Refer to Notes 1 and 20 for additional information.

Stock options:

The Company currently has two incentive compensation plans with outstanding stock options, the 2002 Stock Option Plan and the 2017 Stock and Incentive Compensation Plan (“the Plan”). Only the Plan, which authorizes the use of stock options, stock appreciation rights, restricted stock and/or restricted stock, is available to grant options and shares to employees and directors. At inception the Plan allowed for up to 1,120,000 shares of common stock to be issued. As of December 31, 2019, there are 302,363 shares available for future grant. Shares of common stock related to any unexercised or unvested award granted under the Plan that terminate or expire, or are subsequently forfeited or cancelled for any reason, become available for re-grant under the Plan. Option prices are equal to or greater than the estimated fair value of the common stock at the date of grant. Options outstanding vest over a four-year period, whereby 25% of the options become exercisable on each anniversary of the grant date.

Information with respect to options outstanding during the years ended December 31, 2019 and 2018 is as follows:



Stock Options Outstanding
	2019				2018
	Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
Outstanding at beginning of year	1,431,860		$	9.38	1,363,444		$	8.01
Add: Granted	249,300		14.29		373,750		11.44
Less: Exercised	(221,710	)	6.88		(230,894	)	5.67
Less: Retired on exercise	(141,955	)	6.90		(37,240	)	5.07
Less: Expired/cancelled/forfeited	(9,448	)	10.89		(37,200	)	7.34
Outstanding at end of year	1,308,047		$	11.00	1,431,860		$	9.38
Exercisable at end of year	592,782		$	9.40	643,610		$	7.78

The weighted average fair value of options granted during the years ended December 31, 2019 and 2018, was $4.30 and $2.56, respectively.

A summary of information about stock options outstanding is as follows:



Stock Option Summary
	Weighted Average Exercise Price		Average Remaining Life (years)	Outstanding Shares		Exercisable Shares
December 31, 2019
	$	7.50	1.0	236,212		231,212
	8.50		2.0	202,435		142,885
	11.38		4.0	346,500		86,635
	11.41		4.0	20,000		—
	12.38		3.0	266,600		130,300
	12.80		3.8	7,000		1,750
	14.54		5.0	229,300		—
Total outstanding options	11.00		3.1	1,308,047		592,782
Intrinsic value on December 31, 2019				$	5,089,032	$	3,256,491

December 31, 2018
	$	6.63	1.0	283,886		268,886
	7.50		2.0	297,348		207,898
	8.50		3.0	222,276		103,176
	11.38		5.0	354,750		—
	12.38		4.0	266,600		63,650
	12.80		4.8	7,000		—
Total outstanding options	9.38		3.1	1,431,860		643,610
Intrinsic value on December 31, 2018				$	3,178,491	$	2,399,743

The aggregate intrinsic value as presented in the preceding tables is the difference between the estimated fair value of the stock as of December 31, 2019 and 2018, and the exercise price of the option multiplied by the number of options outstanding. Stock options with exercise prices greater than the estimated fair value of the stock are not included in this calculation.

Total unrecognized compensation expense related to stock options to be recognized over the next five years was $1.7 million and $1.4 million at December 31, 2019 and 2018, respectively.

The intrinsic value of stock options exercised was $1.8 million and $1.3 million during the years ended December 31, 2019 and 2018, respectively.

The weighted average fair value of options granted during 2019 and 2018 were estimated using the Black-Scholes option-pricing model with the following weighted average assumptions:



Stock Option Pricing Assumptions
	2019	2018
Dividend yield	0.00%	0.00%
Risk free interest rate	1.75%	2.53%
Expected volatility	34.79%	18.94%
Expected life in years	5	5

Restricted stock:

The Company from time-to-time also grants shares of restricted stock to key employees. These awards help align the interests of these employees with the interests of the stockholders of the Company by providing economic value directly related to increases in the value of the Company’s stock. These awards typically hold service requirements over various vesting periods. The value of the stock awarded is established as the fair market value of the stock at the time of the grant. The Company recognizes expense, equal to the total value of such awards, ratably over the vesting period of the stock grants.

All restricted stock agreements are conditioned upon continued employment. Termination of employment prior to a vesting date, as described below, would terminate any interest in non-vested shares. All restricted shares will fully vest in the event of change in control of the Company.

Nonvested restricted stock for the years ended December 31, 2019 and 2018 is summarized in the following table.



Restricted Stock Summary
	2019				2018
	Shares		Weighted Average Grant-Date Fair Value		Shares		Weighted Average Grant-Date Fair Value
Nonvested at beginning of year	38,000		$	10.32	42,000		$	8.66
Add: Granted	—		—		12,000		12.38
Less: Vested	(18,500	)	8.16		(16,000	)	7.50
Less: Forfeited	—		—		—		—
Nonvested at end of year	19,500		$	12.38	38,000		$	10.32

The vesting schedule of restricted shares as of December 31, 2019 is as follows:



Restricted Stock Vesting Schedule
Year		Shares
2020		5,500
2021		5,500
2022		5,500
2023		3,000
		19,500

At December 31, 2019 there was $176 thousand of total unrecognized compensation expense related to nonvested restricted stock. At December 31, 2018, there was $230 thousand of total unrecognized compensation expense related to nonvested restricted stock.

Parent Company Financial Information

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Parent Company Financial Information

The balance sheets as of December 31, 2019 and 2018 and statements of income and cash flows for the years then ended, for Capital Bancorp, Inc. (Parent only) are presented below. All share and per common share amounts have been adjusted to reflect the Stock Split. Refer to Note 1 for additional information.



Parent Company Only Balance Sheets

(in thousands)	2019		2018
Assets
Cash and cash equivalents	$	2,391	$	3,768
Investment in Bank	114,626		95,524
Investment in Church Street Capital	3,755		3,284
Investment in Trust	62		62
Loans receivable, net of allowance for loan losses of $258 and $208 at December 31, 2019 and 2018, respectively	28,044		27,032
Accrued interest receivable	98		106
Due from subsidiaries	16		54
Prepaid income taxes	9		90
Deferred income taxes	65		18
Other assets	—		134
Total assets	$	149,066	$	130,072

Liabilities and Stockholders’ Equity
Borrowed funds	$	15,423	$	15,393
Accrued interest payable	82		81
Other Liabilities	230		34
Total liabilities	15,735		15,508
Stockholders’ equity
Common stock	139		137
Additional paid-in capital	51,561		49,321
Retained earnings	81,618		65,701
Accumulated other comprehensive income (loss)	13		(595		)
Total stockholders’ equity	133,331		114,564
Total liabilities and stockholders’ equity	$	149,066	$	130,072



Parent Company Only Statements of Income

(in thousands)	2019			2018
Interest and dividend revenue	$	1,650		$	577
Dividend from Bank	3,500			4,250
Total interest and dividend revenue	5,150			4,827
Interest expense	1,054			1,071
Net interest income	4,096			3,756
Provision for loan losses	50			164
Net interest income after provision for loan losses	4,046			3,592
Noninterest income	5			8
Noninterest expenses	(180		)	(248		)
Income before income taxes	3,871			3,352
Income tax (expense) benefit	(78		)	188
Income before undistributed net income of subsidiaries	3,793			3,540
Equity in undistributed net income of subsidiaries	13,102			9,227
Net income	$	16,895		$	12,767



Parent Company Only Statements of Cash Flows
(in thousands)	2019			2018
Cash flows from operating activities
Net Income	16,895			12,767
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	50			164
Equity in undistributed income-subsidiary	(13,102		)	(9,227		)
(Increase) decrease in receivable from subsidiary bank	38			(148		)
Stock-based compensation expense	795			570
Director and employee compensation paid in Company stock	301			496
Deferred income tax benefit	(47		)	(141		)
Amortization of debt issuance costs	30			32
Changes in assets and liabilities:
Accrued interest receivable	8			(23		)
Prepaid income taxes and taxes payable	81			45
Other assets	(663		)	(169		)
Accrued interest payable	1			(1		)
Other liabilities	195			—
Net cash provided by operating activities	4,582			4,365

Cash flows from investing activities
Net increase in loans receivable	(1,062		)	(19,988		)
Capital injections to subsidiaries	(5,120		)	(367		)
Net cash provided by investing activities	(6,182		)	(20,355		)

Cash flows from financing activities
Repayment of debt	—			(2,000		)
Repurchase of common stock	(371		)	(45		)
Proceeds from exercise of stock options	594			1,043
Proceeds from shares sold	—			198
Proceeds from initial public offering, net	—			19,764
Net cash provided by financing activities	223			18,960

Net increase (decrease) in cash and cash equivalents	(1,377		)	2,970

Cash and cash equivalents, beginning of year	3,768			798

Cash and cash equivalents, end of year	$	2,391		$	3,768

Fair Value

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value

Generally accepted accounting principles define fair value, establish a framework for measuring fair value, recommend disclosures about fair value, and establish a hierarchy for determining fair value measurement. The hierarchy includes three levels and is based upon the valuation techniques used to measure assets and liabilities. The three levels are as follows:

Level 1 - Inputs to the valuation method are quoted prices (unadjusted) for identical assets or liabilities in active markets;

Level 2 - Inputs to the valuation method include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and

Level 3 - Inputs to the valuation method are unobservable and significant to the fair value measurement.

Fair value measurements on a recurring basis

Investment securities available for sale - The fair values of the Company's investment securities available for sale are provided by an independent pricing service. The fair values of the Company's securities are determined based on quoted prices for similar securities under Level 2 inputs.

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

Derivative financial instruments - Derivative instruments used to hedge residential mortgage loans held for sale and the related interest rate lock commitments include forward commitments to sell mortgage loans and are reported at fair value utilizing Level 2 inputs. The fair values of derivative financial instruments are based on derivative market data inputs as of the valuation date and the underlying value of mortgage loans for rate lock commitments.

The interest rate swap is reported at fair value utilizing Level 2 inputs. The Company obtains dealer quotations to value its swap. For purposes of potential valuation adjustments to its derivative position, the Company evaluates the credit risk of its counterparty. Accordingly, the Company has considered factors such as the likelihood of default by the counterparty and the remaining contractual life, among other things, in determining if any fair value adjustment related to credit risk is required.

Note 17 - Fair Value (continued)

The Company has categorized its financial instruments measured at fair value on a recurring basis as of December 31, 2019 and 2018 as follows:



Fair Value of Financial Instruments
(in thousands)	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
December 31, 2019	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Investment securities available for sale
U.S. government-sponsored enterprises	$	999	$	—	$	999	$	—
Municipal	528		—		528		—
Corporate	2,565		—		2,565		—
Mortgage-backed securities	56,736		—		56,736		—
	$	60,828	$	—	$	60,828	$	—
Loans held for sale	$	71,030	$	—	$	71,030	$	—
Derivative assets	$	237	$	—	$	237	$	—
Derivative liabilities	$	125	$	—	$	125	$	—

December 31, 2018
Investment securities available for sale
U.S. government-sponsored enterprises	$	17,360	$	—	$	17,360	$	—
Municipal	501		—		501		—
Corporate	2,885		—		2,885		—
Mortgage-backed securities	26,186		—		26,186		—
	$	46,932	$	—	$	46,932	$	—
Loans held for sale	$	18,526	$	—	$	18,526	$	—
Derivative assets	$	172	$	—	$	172	$	—
Derivative liabilities	$	253	$	—	$	253	$	—

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.

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)
	2019		2018
Loans held for sale
Aggregate fair value	$	71,030	$	18,526
Contractual principal	$	67,118	$	17,822
Difference	$	3,912	$	704

Note 17 - Fair Value (continued)

As of December 31, 2019 and 2018, the Company 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.

Fair value measurements on a nonrecurring basis

Impaired loans - The Company has measured impairment generally based on the fair value of the loan's collateral and discounted cash flow analysis. Fair value 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 December 31, 2019 and 2018, the fair values consist of loan balances of $4.1 million and $4.4 million, with valuation allowances of $119 thousand and $262 thousand, respectively.

Foreclosed real estate - The Company's foreclosed real estate is measured at fair value less cost to sell. Fair value was determined based on offers and/or appraisals. Cost to sell the real estate was based on standard market factors. The Company has categorized its foreclosed real estate as Level 3.



Fair Value of Impaired Loans and Foreclosed Real Estate
(in thousands)
	2019		2018
Impaired loans
Level 1 Inputs	$	—	$	—
Level 2 Inputs	—		—
Level 3 Inputs	3,980		4,093
Total	$	3,980	$	4,093

Foreclosed real estate
Level 1 Inputs	—		—
Level 2 Inputs	—		—
Level 3 Inputs	2,384		142
Total	$	2,384	$	142

The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at December 31, 2019 and 2018:



	Inputs
	Valuation Technique	Unobservable Inputs	General Range of Inputs
	Valuation Technique	Unobservable Inputs	General Range of Inputs
Impaired Loans	Appraised Value/Discounted Cash Flows	Discounts to appraisals or cash flows for estimated holding and/or selling costs	0 - 25%
Foreclosed Real Estate	Appraised Value/Comparable Sales	Discounts to appraisals for estimated holding and/or selling costs	0 - 25%

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 that contractual right or obligation to either receive or deliver cash for another financial instrument.

Note 17 - Fair Value (continued)

The information used to determine fair value is highly subjective and judgmental in nature and, therefore, the results may not be precise. 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 December 31, 2019, the technique used by the Company to estimate the exit price of the loan portfolio consists of similar procedures to those used as of December 31, 2018, but with added emphasis on both illiquidity risk and credit risk not captured by the previously applied entry price notion. The fair value of the Company’s loan portfolio has always included 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, impaired loans, and all other loans. The results are then adjusted to account for credit risk as described above. However, under the new guidance, the Company believes a further credit risk discount must be 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. This consideration of enhanced credit risk provides an estimated exit price for the Company’s loan portfolio.

For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values approximate carrying values. Fair values for impaired 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, interest bearing deposits at other financial institutions, federal funds sold and restricted investments is the carrying amount. Restricted stock 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 and savings deposits, and money market accounts, 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 certificates of deposit in other financial institutions is estimated based on interest rates currently offered for deposits 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.

Note 17 - Fair Value (continued)

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



Fair Value of Financial Assets and Liabilities
	December 31, 2019				December 31, 2018
(in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Level 1
Cash and due from banks	$	10,530	$	10,530	$	10,431	$	10,431
Interest bearing deposits at other financial institutions	102,447		102,447		22,007		22,007
Federal funds sold	1,847		1,847		2,285		2,285
Restricted investments	3,966		3,966		2,503		2,503
Level 3
Loans receivable, net	$	1,157,820	$	1,155,922	$	988,960	$	979,058

Financial liabilities
Level 1
Noninterest-bearing deposits	$	291,777	$	291,777	$	242,259	$	242,259
Securities sold under agreements to repurchase	—		—		3,332		3,332
Level 3
Interest-bearing deposits	933,644		934,349		712,981		711,876
FHLB advances and other borrowed funds	$	47,645	47,678		19,393		19,447

- 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.

+ References + Details

Segments

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Segments

The Company’s reportable segments represent product line divisions and are viewed separately for strategic planning purposes by management. The four segments include Commercial Banking, Capital Bank Home Loans (the Company’s mortgage loan division), and OpenSky® (the Company’s credit card division) and the Corporate Office. The following schedule presents financial information for each reportable segment at December 31, 2019.



Segments

(in thousands)	Commercial Bank		CBHL		OpenSky®		Corporate		Eliminations			Consolidated
Interest income	$	60,385	$	2,901	$	18,394	$	2,330	$	(656	)	$	83,354
Interest expense	14,536		887		—		1,075		(656		)	15,842
Net interest income	45,849		2,014		18,394		1,255		—			67,512
Provision for loan losses	2,015		—		726		50		—			2,791
Noninterest income	744		16,115		7,654		5		—			24,518
Noninterest expense	31,173		14,456		20,654		242		—			66,525
Net income before taxes	$	13,405	$	3,673	$	4,668	$	968	$	—		$	22,714

Total assets	$	1,275,683	$	71,899	$	49,352	$	35,239	$	(3,678	)	$	1,428,495

Litigation	12 Months Ended
Litigation	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Litigation	Litigation As previously reported in the Company’s quarterly report on Form 10-Q for the quarter ended March 31, 2019, the Bank, along with two other banking institutions, was a defendant in a lawsuit to which on April 9, 2019, the Bank entered into a Settlement Agreement and Joint Tortfeasor Release with the plaintiff. All amounts paid by the Bank were fully funded by its insurance carrier except for $200,000 which was accrued at March 31, 2019 and paid in April, 2019. The Settlement includes a release of all claims in the lawsuit that were or could have been brought and precludes further proceedings. In addition to the lawsuit described above, the Company is involved in legal proceedings occurring in the ordinary course of business. The aggregate effect of these, in management’s opinion, would not be material on the results of operations or financial condition of the Company.

Quarterly Results of Operations (unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results of Operations (unaudited)

The following table presents condensed unaudited information relating to quarterly periods in 2019 and 2018. All share and per common share amounts have been adjusted to reflect the Stock Split. Refer to Note 1 for additional information.



Quarterly Results of Operations
(in thousands)
	2019								2018
	Dec 31		Sept 30		Jun 30		Mar 31		Dec 31		Sept 30		Jun 30		Mar 31
Interest Income	$	22,393	$	22,354	$	20,289	$	18,318	$	18,238	$	17,447	$	16,778	$	16,664
Interest Expense	4,339		4,170		3,758		3,574		3,348		2,955		2,657		2,279
Net Interest Income	18,054		18,184		16,531		14,744		14,890		14,492		14,121		14,385
Provision for Loan Losses	921		1,071		677		121		500		495		630		515
Noninterest Income	7,278		7,220		5,927		4,092		3,466		4,240		4,340		4,078
Noninterest Expense	17,757		18,228		16,210		14,330		13,094		13,900		13,529		13,600
Income Before Provision for Income Taxes	6,654		6,105		5,571		4,385		4,762		4,337		4,302		4,348
Provision for Income Taxes	1,581		1,625		1,548		1,066		1,276		1,190		1,158		1,358
Net Income	$	5,073	$	4,480	$	4,023	$	3,319	$	3,486	$	3,147	$	3,144	$	2,990

Basic earnings per common share	$	0.37	$	0.33	$	0.30	$	0.24	$	0.26	$	0.27	$	0.26	$	0.26
Diluted earnings per common share	$	0.36	$	0.32	$	0.29	$	0.24	$	0.25	$	0.26	$	0.26	$	0.25

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2019
Subsequent Events [Abstract]
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.

Nature of Business and Basis of Presentation (Policies)	12 Months Ended
Nature of Business and Basis of Presentation (Policies)	Dec. 31, 2019
Accounting Policies [Abstract]
Nature of operations	Nature of Business Capital Bancorp, Inc. is a Maryland corporation and bank holding company (the “Company”) for Capital Bank, N.A. (the “Bank”). The Company's primary operations are conducted by the Bank, which operates branches in Rockville, Columbia and North Bethesda, Maryland, Reston, Virginia, and the District of Columbia. The Bank is principally engaged in the business of investing in commercial, real estate, and credit card loans and attracting deposits. The Company originates residential mortgages for sale in the secondary market through Capital Bank Home Loans, our residential mortgage banking arm, and issues credit cards through OpenSky®, a secured, digitally-driven nationwide credit card platform. The Company formed Church Street Capital, LLC (“Church Street Capital”) in 2014 to provide short-term secured real estate financing to Washington, D.C. area investors and developers that may not meet all Bank credit criteria.
Basis of presentation	Basis of Presentation The accompanying consolidated financial statements include the activity of the Company and its wholly-owned subsidiaries, the Bank and Church Street Capital. All intercompany transactions have been eliminated in consolidation. The Company reports its activities as a four business segments: commercial banking; mortgage lending; credit cards; and corporate activities. 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. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and conform to general practices within the banking industry.
Cash and cash equivalents	Cash and cash equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest bearing deposits with banks and federal funds sold. Generally, federal funds are sold for one-day periods.
Investment securities	Investment securities Investment securities are classified as available for sale and carried at fair value with unrealized gains and losses included in stockholders’ equity on an after-tax basis. Premiums and discounts on investment securities are amortized or accreted using the interest method. Changes in the fair value of debt securities available for sale are included in stockholder’s equity as unrealized gains and losses, net of the related tax effect. Unrealized losses are periodically reviewed to determine whether the loss represents an other than temporary impairment. Any unrealized losses judged to be other than a temporary impairment will be charged to income.
Loans held for sale	Loans held for sale Mortgage loans originated and intended for sale are recorded at fair value, determined individually, as of the balance sheet date. Fair value is determined based on outstanding investor commitments, or in the absence of such commitments, based on current investor yield requirements. Gains and losses on loan sales are determined by the specific-identification method. The Company’s current practice is to sell residential mortgage loans on a servicing released basis, and, therefore, it has no intangible asset recorded for the value of such servicing. Interest on loans held for sale is credited to income based on the principal amounts outstanding. Upon sale and delivery, loans are legally isolated from the Company and the Company has no ability to restrict or constrain the ability of third‑party investors to pledge or exchange the mortgage loans. The Company does not have the entitlement or ability to repurchase the mortgage loans or unilaterally cause third‑party investors to put the mortgage loans back to the Company. Unrealized and realized gains on loan sales are determined using the specific-identification method and are recognized through mortgage banking activity in the Consolidated Statements of Income. The Company elected to measure loans held for sale at fair value to better align reported results with the underlying economic changes in value of the loans on the Company’s balance sheet.
Loans and Allowance for Loan Losses	Loans and the allowance for loan losses Loans are stated at the principal amount outstanding, adjusted for deferred origination fees, deferred origination costs, discounts on loans acquired, and the allowance for loan losses. Interest is accrued based on the loan principal balances and stated interest rates. Origination fees and costs are recognized as an adjustment to the related loan yield using approximate interest methods. The Company generally discontinues the accrual of interest when any portion of the principal and interest is 90 days past due and collateral is insufficient to discharge the debt in full. Generally, interest payments on nonaccrual loans are recorded as a reduction of the principal balance. Loans are considered impaired when, based on current information, management believes the Company will not collect all principal and interest payments according to contractual terms. Generally, loans are reviewed for impairment when the risk grade for a loan is downgraded to a classified asset category. The loans are evaluated for appropriate classification, accrual, impairment, and troubled debt restructure status. If collection of principal is evaluated as doubtful, all payments are applied to principal. A modification of a loan is considered a TDR when a borrower is experiencing financial difficulty and the modification constitutes a concession. The Company may consider interest rate reductions, changes to payment terms, extensions of maturities and/or principal reductions. Loans are generally charged-off in part or in full when management determines the loan to be uncollectible. Factors for charge-off that may be considered include: repayments deemed to be projected beyond reasonable time frames, client bankruptcy and lack of assets, and/or collateral deficiencies. The allowance for loan losses is estimated to adequately provide for probable future losses on existing loans. The allowance consists of specific and general components. For loans that are classified as impaired, an allowance is established when the collateral value, if the loan is collateral dependent, or the discounted cash flows of the impaired loan, is lower than the carrying value of that loan. The general component covers pools of nonclassified loans and is based on historical loss experience adjusted for qualitative factors. There may be an unallocated component of the allowance, which reflects the margin of the imprecision inherent in the underlying assumptions used in the method for estimating specific and general losses in the portfolio. Actual loan performance may differ from those estimates. A loss is recognized as a charge to the allowance when management believes that collection of the loan is unlikely. Collections of loans previously charged off are added to the allowance at the time of recovery. The components of the allowance for loan losses represent an estimation done pursuant to ASC Topic 450, “Contingencies,” or ASC Topic 310,“Receivables.” Specific allowances are established in cases where management has identified significant conditions or circumstances related to a specific credit that management believes indicate the probability that a loss may be incurred. The process for determining an appropriate allowance for loan losses is based on a comprehensive, well-documented, and consistently applied analysis of the loan portfolio. The analysis considers significant factors that affect the collectibility of the portfolio and supports the loan losses estimated by this process. It is important to recognize that the related process, methodology, and underlying assumptions require a substantial degree of judgment. Management believes that the allowance for loan losses is adequate; however, determination of the allowance is inherently subjective and requires significant estimates. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions. Evaluation of the potential effects of these factors on estimated losses involves a high degree of uncertainty, including the strength and timing of economic cycles and concerns over the effects of a prolonged economic downturn in the current cycle. In addition, various banking agencies, as an integral part of their examination process, and independent consultants engaged by the Bank, periodically review the Bank’s loan portfolio and allowance for loan losses. Such review may result in recognition of additions to the allowance based on their judgments of information available to them at the time of their examination. The review of the adequacy of the allowance for loan losses includes an assessment of the fair value adjustment for acquired loans in accordance with generally accepted accounting principles.
Premises and equipment	Premises and equipment Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related property generally over two to seven years. Leasehold improvements are amortized over the estimated term of the respective leases, which may include renewal options where management has the positive intent to exercise such options, or the estimated useful lives of the improvements, whichever is less. Expenditures for maintenance, repairs, and minor replacements are charged to noninterest expenses as incurred. The costs of major renewals and betterments are capitalized, These costs would be included as a component of premises and equipment expenses on the Consolidated Statements of Operations.
Leases	Leases During the first quarter of 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 applies a right-of-use (“ROU”) model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset and a liability to make lease payments. The Company has elected to apply the practical expedients permitting entities to not reassess: 1) whether any expired or existing contracts are or contain leases; 2) the lease classification for any expired or existing leases; and 3) initial direct costs for any existing leases. Additionally, as provided by ASU 2016-02, the Company has elected not to apply the recognition requirements of ASC 842 to short-term leases, defined as leases with a term of 12 months or less, and to recognize the lease payments in net income on short-term leases on a straight-line basis over the lease term. We adopted the guidance using the modified retrospective approach on January 1, 2019 and elected the practical expedients for transition including the transition option provided in ASU 2018-11, Leases (Topic 842) Targeted Improvements, which allowed the Company to initially apply the new leases standard at the adoption date. Consequently, the reporting for the comparative periods presented continued to be in accordance with ASC Topic 840, Leases. Therefore, the 2018 financial results and disclosures have not been adjusted. The Company is largely accounting for our existing operating leases consistent with prior guidance except for the incremental balance sheet recognition for leases.
Derivative Financial Instruments	Derivative Financial Instruments The Company enters into commitments to fund residential mortgage loans (interest rate locks) with the intention of selling them in the secondary market. The Company also enters into forward sales agreements for certain funded loans and loan commitments. Unfunded commitments intended for loans held for sale and forward sales agreements are recorded at fair value with changes in fair value recorded as a component of mortgage banking revenue. Loans originated and intended for sale in the secondary market are carried at fair value. For pipeline loans which are not pre-sold to an investor, the Company manages the interest rate risk on rate lock commitments by entering into forward sale contracts, whereby the Company obtains the right to deliver securities to investors in the future at a specified price, Such contracts are accounted for as derivatives and are recorded at fair value as derivative assets or liabilities, with changes in fair value recorded in mortgage banking revenue. The Company accounts for derivative instruments and hedging activities according to guidelines established in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 815-10, Accounting for Derivative Instruments and Hedging Activities, as amended. The Company recognizes all derivatives as either assets or liabilities on the balance sheet and measures those instruments at fair value. Changes in fair value of derivatives designated and accounted for as cash flow hedges, to the extent they are effective as hedges, are recorded in other comprehensive income, net of deferred taxes. Any hedge ineffectiveness would be recognized in the income statement line item pertaining to the hedged item.
Fair Value Measurements	Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. The degree of management judgment involved in determining the fair value of a financial instrument is dependent upon the availability of quoted market prices or observable market inputs. For financial instruments that are traded actively and have quoted market prices or observable market inputs, there is minimal subjectivity involved in measuring fair value. However, when quoted market prices or observable market inputs are not fully available, significant management judgment may be necessary to estimate fair value. In developing our fair value estimates, we maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy defines Level 1 valuations as those based on quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 valuations include inputs based on quoted prices for similar assets or liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 valuations are based on at least one significant assumption not observable in the market, or significant management judgment or estimation, some of which may be internally developed. Financial assets that are recorded at fair value on a recurring basis include investment securities available for sale, loans held for sale, and derivative financial instruments. Financial liabilities that are recorded at fair value on a recurring basis are comprised of derivative financial instruments. See the Fair Value note to our consolidated financial statements.
Income Taxes	Income Taxes The Company employs the asset and liability method of accounting for income taxes as required by ASC Topic 740, “Income Taxes.” Under this method, deferred tax assets and liabilities are determined based on differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities (i.e. temporary timing differences) and are measured at the enacted rates that will be in effect when these differences reverse. The Company utilizes statutory requirements for its income tax accounting, and limits risks associated with potentially problematic tax positions that may incur challenge upon audit, where an adverse outcome is more likely than not. Therefore, no provisions are necessary for either uncertain tax positions nor accompanying potential tax penalties and interest for underpayments of income taxes in the Company’s tax reserves. In accordance with ASC Topic 740, the Company may establish a valuation allowance against deferred tax assets in those cases where realization is less than certain.
Earnings per share	Earnings per share Earnings per share is computed by dividing net income available to common stockholders by the weighted average number of shares outstanding. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding, adjusted for the dilutive effect of stock options and restricted stock using the treasury stock method.
Comprehensive income	Comprehensive income The Company reports as comprehensive income all changes in stockholders' equity during the year from sources other than stockholders. Other comprehensive income refers to all components (income, expenses, gains, and losses) of comprehensive income that are excluded from net income. The Company's only two components of other comprehensive income are unrealized gains and losses on investment securities available for sale, net of income taxes, and unrealized gains and losses on cash flow hedges, net of income taxes.
Recently issued accounting pronouncements	Recently issued accounting pronouncements: In June 2016, the FASB issued guidance to change the accounting for loan losses and modify the impairment model for certain debt securities. In October 2019, the FASB voted to delay implementation and the new standard is now effective for fiscal years beginning after December 15, 2022, including the interim periods within those fiscal years. The Company expects the provisions of this standard to impact the Company’s consolidated financial statements, in particular, the level of the reserve for loan losses. The Company is continuing to evaluate the extent of the potential impact and expects that portfolio composition and economic conditions at the time of adoption will be a factor. The Company will apply the amendments to the ASU through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. While early adoption was permitted, the Company did not elect that option. In addition to our allowance for loan losses, the Company will also record an allowance for credit losses on held-to-maturity debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio’s composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. In August 2018, the FASB amended the Fair Value Measurement Topic 820 disclosure framework. These amendments include additions, removals and modifications to the fair value disclosure requirements in Topic 820, and are effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted on removed or modified disclosures. The Company does not expect these amendments to have a material effect on its financial statements. In April 2019, the FASB issued codification improvements to ASU Topic 326 - Financial Instruments - Credit Loss, Topic 815 - Derivatives and Hedging, and Subtopic 825-10 - Financial Instruments. This codification provides technical corrections and clarifies issues related to fair value hedges. The Company early adopted this guidance upon issuance, and it did not have a material impact on the Company’s Consolidated Financial Statements. In April 2019, the FASB issued guidance that clarifies and improves areas of guidance related to the recently issued standards on loan losses, hedging, and recognition and measurement of financial instruments. The amendments related to loan losses will be effective for the Company for reporting periods beginning after December 15, 2022. The amendments related to hedging were effective for the Company for interim and annual periods beginning after December 15, 2018. The amendments related to recognition and measurement of financial instruments were adopted by the Company during the first quarter of 2018. The Company does not expect these amendments to have a material effect on its financial statements. In November 2019, the FASB issued guidance to defer the effective dates for private companies, not-for-profit organizations, and certain smaller reporting companies applying standards on current expected loan losses (CECL). The new effective dates will be fiscal years beginning after December 15, 2022 including interim periods within those fiscal years. In addition, the FASB issued guidance that addresses issues raised by stakeholders during the implementation of ASU 2016-13, Financial Instruments-loan losses (Topic 326): Measurement of loan losses on Financial Instruments. The amendments affect a variety of Topics in the Accounting Standards Codification. For entities that have not yet adopted the amendments in ASU 2016-13, the amendments are effective for fiscal years beginning after December 15, 2022 including interim periods within those fiscal years. Early adoption is permitted in any interim period as long as an entity has adopted the amendments in ASU 2016-13. The Company does not expect these amendments to have a material effect on its financial statements. In December 2019, the FASB issued guidance to simplify accounting for income taxes by removing specific technical exceptions that often produce information investors have a hard time understanding. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The amendments are effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. 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 the amounts reported in prior periods to conform to the current period presentation. The reclassifications had no effect on net income or total stockholders' equity.

Nature of Business and Basis of Presentation (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following is a reconciliation of the numerators and denominators used in computing basic and diluted earnings per common share as adjusted for the Stock Split:



Earnings Per Share	For the Years Ended December 31,
	2019					2018
(dollars in thousands, except per share information)	Income		Weighted Average Shares	Per Share Amount		Income		Weighted Average Shares	Per Share Amount
Basic EPS
Net income available to common stockholders	$	16,895	13,733,131	$	1.23	$	12,767	12,116,459	$	1.05
Effect of dilutive securities	—		235,454			—		345,679
Dilutive EPS per common share	$	16,895	13,968,585	$	1.21	$	12,767	12,462,138	$	1.02

Schedule of Accumulated Other Comprehensive Income (Loss)

Information concerning the Company's accumulated other comprehensive income (loss) as of December 31, 2019, and 2018 are as follows (in thousands):



Comprehensive Income	For the Years Ended December 31,
(in thousands)	2019			2018
Unrealized gains (losses) on securities available for sale	$	18		$	(825	)
Deferred tax (expense) benefit	(5		)	227
Other comprehensive income (loss), net of tax	13			(598		)
Unrealized gains on cash flow hedges	—			5
Deferred tax expense	—			(2		)
Other comprehensive income, net of tax	—			3
Total accumulated comprehensive income (loss)	$	13		$	(595	)

Investment Securities (Tables)

12 Months Ended

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Unrealized Gain (Loss) on Investments

The amortized cost and estimated fair value of investment securities at December 31, 2019 and 2018 are summarized as follows:



Investment Securities Available for Sale
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
(in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
December 31, 2019
U.S. government-sponsored enterprises	$	1,000	$	—	$	(1	)	$	999
Municipal	515		13		—			528
Corporate	2,542		46		(23		)	2,565
Mortgage-backed securities	56,754		117		(135		)	56,736
	$	60,811	$	176	$	(159	)	$	60,828

December 31, 2018
U.S. government-sponsored enterprises	$	17,496	$	—	$	(136	)	$	17,360
Municipal	517		—		(16		)	501
Corporate	2,908		28		(51		)	2,885
Mortgage-backed securities	26,836		46		(696		)	26,186
	$	47,757	$	74	$	(899	)	$	46,932

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

Information related to unrealized losses in the investment portfolio as of December 31, 2019 and 2018 are as follows:



Investment Securities Unrealized Losses
	Less than 12 months					12 months or longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
(in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
December 31, 2019
U.S. government-sponsored enterprises	$	—	$	—		$	999	$	(1	)	$	999	$	(1	)
Corporate	—		—			519		(23		)	519		(23		)
Mortgage-backed securities	21,487		(78		)	5,246		(57		)	26,733		(135		)
	$	21,487	$	(78	)	$	6,764	$	(81	)	$	28,251	$	(159	)

December 31, 2018
U.S. government-sponsored enterprises	$	496	$	(2	)	$	16,864	$	(134	)	$	17,360	$	(136	)
Municipal	—		—			501		(16		)	501		(16		)
Corporate	—		—			857		(51		)	857		(51		)
Mortgage-backed securities	2,294		(7		)	21,037		(689		)	23,331		(696		)
	$	2,790	$	(9	)	$	39,259	$	(890	)	$	42,049	$	(899	)

Schedule Of Pledged Securities

A summary of pledged securities at December 31, 2019 and 2018 is shown below:



Pledged Securities
	For the Years Ended December 31,
	2019				2018
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Securities sold under agreements to repurchase	$	—	$	—	$	16,032	$	15,862
Federal Home Loan Bank advances	1,508		1,522		6,713		6,662
	$	1,508	$	1,522	$	22,745	$	22,524

Investments Classified by Contractual Maturity Date



Investment Securities - Contractual Maturities
	For the Years Ended December 31,
	2019				2018
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	1,542	$	1,518	$	16,496	$	16,377
Over one to five years	—		—		1,000		983
Over five to ten years	2,000		2,046		2,000		2,028
Over ten years	515		528		1,425		1,358
Mortgage-backed securities⁽¹⁾	56,754		56,736		26,836		26,186
	$	60,811	$	60,828	$	47,757	$	46,932

_______________


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

Loans Receivable (Tables)

12 Months Ended

Dec. 31, 2019

Receivables [Abstract]

Schedule of Loans Receivable

Major categories of loans are as follows:



Loan Categories
	December 31,
(in thousands)	2019			2018
Real estate:
Residential	$	427,926		$	407,844
Commercial	348,091			278,691
Construction	198,702			157,586
Commercial	151,109			122,264
Credit card	46,412			34,673
Other consumer	1,285			1,202
	1,173,525			1,002,260
Deferred origination fees, net	(2,404		)	(1,992		)
Allowance for loan losses	(13,301		)	(11,308		)
Loans receivable, net	$	1,157,820		$	988,960

Schedule Of Activity In Accretable Discounts On Loans Acquired

The activity in the accretable discounts on loans acquired was as follows:



Accretable Discounts on Loans Acquired
	December 31,
(in thousands)	2019			2018
Accretable discount at beginning of period	$	438		$	543
Accretion and payoff of loans	(9		)	(105		)
Accretable discount at end of period	$	429		$	438

Allowance for Credit Losses on Loans Receivables

The following tables present, by class and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans as of December 31, 2019 and 2018.



Allowance for Loan Losses
(in thousands)			Provision for Loan Losses									Allowance for Loan Losses Ending Balance Evaluated for Impairment:				Outstanding Loan Balances Evaluated for Impairment:
December 31, 2019	Beginning Balance		Provision for Loan Losses		Charge-Offs			Recoveries		Ending Balance		Individually		Collectively		Individually		Collectively
Real estate:
Residential	$	3,541	$	634	$	(40	)	$	—	$	4,135	$	—	$	4,135	$	2,192	$	425,734
Commercial	3,003		556		—			13		3,572		—		3,572		1,433		346,658
Construction	2,093		575		—			—		2,668		—		2,668		—		198,702
Commercial	1,578		299		(331		)	2		1,548		119		1,429		474		150,635
Credit card	1,084		726		(461		)	19		1,368		—		1,368		—		46,412
Other consumer	9		1		—			—		10		—		10		—		1,285
	$	11,308	$	2,791	$	(832	)	$	34	$	13,301	$	119	$	13,182	$	4,099	$	1,169,426

December 31, 2018
Real estate:
Residential	$	3,137	$	522	$	(121	)	$	3	$	3,541	$	—	$	3,541	$	2,120	$	405,724
Commercial	2,860		13		(22		)	152		3,003		—		3,003		1,486		277,205
Construction	1,646		447		—			—		2,093		—		2,093		—		157,586
Commercial	1,497		194		(147		)	34		1,578		262		1,316		749		121,515
Credit card	885		963		(806		)	42		1,084		—		1,084		—		34,673
Other consumer	8		1		—			—		9		—		9		—		1,202
	$	10,033	$	2,140	$	(1,096	)	$	231	$	11,308	$	262	$	11,046	$	4,355	$	997,905

Past Due Loans Receivables

Past due loans, segregated by delinquency and class of loans, as of December 31, 2019 and 2018 were as follows:



Loans Past Due	Loans 30-89 Days Past Due		Loans 90 or More Days Past Due		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 or More days Past Due		Nonaccrual Loans

(in thousands)
December 31, 2019
Real estate:
Residential	$	704	$	2,436	$	3,140	$	424,786	$	427,926	$	374	$	2,192
Commercial	275		1,671		1,946		346,145		348,091		237		1,433
Construction	756		—		756		197,946		198,702		—		—
Commercial	172		353		525		150,584		151,109		—		474
Credit card	5,526		8		5,534		40,878		46,412		9		—
Other consumer	—		—		—		1,285		1,285		—		—
	$	7,433	$	4,468	$	11,901	$	1,161,624	$	1,173,525	$	620	$	4,099

Acquired loans included above	$	305	$	1,243	$	1,548	$	4,873	$	6,421	$	464	$	880

December 31, 2018
Real estate:
Residential	$	1,070	$	2,081	$	3,151	$	404,693	$	407,844	$	235	$	2,207
Commercial	1,746		1,431		3,177		275,514		278,691		—		1,486
Construction	—		—		—		157,586		157,586		—		—
Commercial	612		398		1,010		121,254		122,264		—		749
Credit card	3,771		2		3,773		30,900		34,673		2		—
Other consumer	—		—		—		1,202		1,202		—		—
	$	7,199	$	3,912	$	11,111	$	991,149	$	1,002,260	$	237	$	4,442

Acquired loans included above	$	521	$	488	$	1,009	$	7,275	$	8,284	$	235	$	582

Impaired Loans Receivables

Impaired loans also include acquired loans for which management has recorded a nonaccretable discount. Impaired loans as of December 31, 2019 and 2018 were as follows:



Impaired Loans
	Unpaid Contractual Principal Balance		Recorded Investment with no Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment		Interest Recognized
(in thousands)
December 31, 2019
Real estate
Residential	$	2,309	$	2,192	$	—	$	2,192	$	—	$	2,510	$	8
Commercial	1,477		1,433		—		1,433		—		1,620		18
Construction	—		—		—		—		—		—		—
Commercial	574		201		273		474		119		777		9
	$	4,360	$	3,826	$	273	$	4,099	$	119	$	4,907	$	35

Acquired loans included above	$	1,148	$	880	$	—	$	880	$	—	$	1,164	$	18

December 31, 2018
Real estate
Residential	$	2,411	$	2,120	$	—	$	2,120	$	—	$	2,564	$	28
Commercial	1,551		1,486		—		1,486		—		1,591		—
Construction	—		—		—		—		—		140		—
Commercial	856		363		386		749		262		1,270		—
	$	4,818	$	3,969	$	386	$	4,355	$	262	$	5,565	$	28

Acquired loans included above	$	775	$	497	—		$	497	$	—	$	—	$	—

Loans Receivables Credit Quality Indicators



Classified Loans
(in thousands)	Pass⁽¹⁾		Special Mention		Substandard		Doubtful		Total
December 31, 2019
Real estate:
Residential	$	425,661	$	—	$	2,265	$	—	$	427,926
Commercial	340,313		6,345		1,433		—		348,091
Construction	198,702		—		—		—		198,702
Commercial	145,178		4,505		1,426		—		151,109
Credit card	46,412		—		—		—		46,412
Other consumer	1,285		—		—		—		1,285
Total	$	1,157,551	$	10,850	$	5,124	$	—	$	1,173,525

December 31, 2018
Real estate:
Residential	$	405,532	$	118	$	2,194	$	—	$	407,844
Commercial	274,247		2,958		1,486		—		278,691
Construction	154,643		843		2,100		—		157,586
Commercial	117,670		3,844		750		—		122,264
Credit card	34,673		—		—		—		34,673
Other consumer	1,202		—		—		—		1,202
Total	$	987,967	$	7,763	$	6,530	$	—	$	1,002,260

________________________

⁽¹⁾Pass includes loans graded exceptional, very good, good, satisfactory and pass/watch

Troubled Debt Restructurings on Loans Receivables

The status of TDRs is as follows:



Troubled Debt Restructurings
	Number of Contracts	Recorded Investment
(dollars in thousands)	Number of Contracts	Performing		Nonperforming		Total
December 31, 2019
Real estate:
Residential	3	$	—	$	145	$	145
Commercial	2	—		314		314
Total	5	$	—	$	459	$	459

Acquired loans included above	3	$	—	$	145	$	145

December 31, 2018
Real estate:
Residential	3	$	—	$	145	$	145
Commercial	1	—		139		139
Total	4	$	—	$	284	$	284

Acquired loans included above	3	$	—	$	145	$	145

Schedule Of Outstanding Loan Commitments

Outstanding loan commitments were as follows:



Loan Commitments
	For the Years Ended December 31,
(in thousands)	2019		2018
Unused lines of credit
Commercial	$	41,346	$	52,083
Commercial real estate	26,507		8,980
Residential real estate	13,754		12,853
Home equity	26,407		27,243
Secured credit card	37,517		29,142
Personal	43		126
Construction commitments:
Residential real estate	96,807		72,424
Commercial real estate	18,192		6,358
	$	260,573	$	209,209

Commitments to originate residential loans held for sale	$	2,646	$	647

Letters of credit	$	5,305	$	6,216

Schedule of Credit Losses for Financing Receivables

The Company maintains a reserve for off balance sheet items such as unfunded lines of credit. Activity for this account is as follows:



Off Balance Sheet Reserve
(in thousands)	2019		2018
Balance at beginning of period	$	1,053	$	901
Add: Provision	173		152
Add: Recoveries	—		—
Less: Charge-offs	—		—
Balance at end of period	$	1,226	$	1,053

The Company maintains a reserve for potential losses on mortgage loans sold. Activity in this reserve is as follows for the periods presented:



Mortgage Loan Put-back Reserve
(in thousands)	2019			2018
Balance at beginning of period	$	501		$	457
Add: Provision	184			106
Add: Recoveries	—			—
Less: Charge-offs	(109		)	(62		)
Balance at end of period	$	576		$	501

Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Premises and equipment and the related depreciation and amortization consist of the following:



Premises and Equipment
(in thousands)	2019		2018
Leasehold improvements	$	1,688	$	1,686
Furniture and equipment	4,622		4,430
Vehicle	54		54
Software	2,517		2,405
Construction in progress	—		19
	8,881		8,594
Less: Accumulated depreciation and amortization	6,709		5,619
Premises and equipment	2,172		2,975
Net lease asset	3,920		—
Premises and equipment, net	$	6,092	$	2,975

Depreciation and amortization expense	$	1,113	$	1,085

Lease (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Assets and Liabilities, Lessee

The Company’s lease information is summarized as follows:



Leases
(in thousands)	December 31, 2019
Lease Right of Use Asset
Lease asset	5,158
Less: Accumulated amortization	(1,238		)
Net lease asset	3,920

Lease Liability
Lease liability	$	5,358
Less: Accumulated amortization	(1,067		)
Net lease liability	$	4,291

Lessee, Operating Lease, Liability, Maturity

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



Lease Payment Obligations
(in thousands)	December 31, 2019
Amounts due in:
2020	$	1,265
2021	1,281
2022	921
2023	744
2024	420
Total lease payments	$	4,631

Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The following table reports the commitment and fair value amounts on the outstanding derivatives:



Derivatives
(in thousands)	December 31, 2019			December 31, 2018
Notional amount of open forward sales agreements	$	61,000		$	25,000
Fair value of open forward delivery sales agreements	(125		)	(253		)
Notional amount of open mandatory delivery commitments	22,888			4,256
Fair value of open mandatory delivery commitments	115			59
Notional amount of interest rate lock commitments	32,365			18,776
Fair value of interest rate lock commitments	122			108
Fair value of interest rate swap	—			5

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 235
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 815
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-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579240-113959

+ Details

Interest Bearing Deposits (Tables)

12 Months Ended

Dec. 31, 2019

Deposits [Abstract]

Deposit Liabilities, Type

Major categories of interest bearing deposits are as follows:



Interest-Bearing Deposits
(in thousands)	2019		2018
Interest-bearing demand accounts	$	174,166	$	85,747
Money market accounts	429,078		288,896
Savings	3,675		2,866
Certificates of deposit of $250,000 or more	115,311		99,412
Other time deposits	211,414		236,060
Total interest-bearing deposits	$	933,644	$	712,981

Time Deposit Maturities

As of December 31, 2019, certificates of deposit mature as follows:



Maturities of Certificates of Deposit
(in thousands)
2020	$	182,379
2021	135,355
2022	7,522
2023	673
2024, and thereafter	796
	$	326,725

Securities Sold Under Agreements to Repurchase (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure of Repurchase Agreements [Abstract]

Schedule Of Securities Sold Under Agreements To Repurchase

The Company formerly sold securities under repurchase agreements to provide cash management services to commercial account customers. These borrowings are summarized as follows:



Securities Sold Under Agreements to Repurchase
(dollars in thousands)	2019			2018
Average amount outstanding	$	1,287		$	10,596
Average rate paid during the year	1.75		%	1.38		%
Maximum amount outstanding at month end	$	3,400		$	12,445

Investment securities pledged to secure the underlying agreements at year end:
Amortized cost	$	—		$	16,032
Fair value	—			15,862

Borrowed Funds (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Schedule of Debt

As of December 31, 2019 and 2018, the Company was indebted as follows:



Borrowed Funds
	2019					2018
(dollars in thousands)	Balance			Interest		Balance			Interest
Correspondent Banks	—			—	%	2,000			3.28	%
Total - Federal funds purchased	$	—				$	2,000

FHLB principal reducing advances due May 10, 2022	$	32,222		2.40	%	$	—		—	%
FHLB advance due March 25, 2019	—			—	%	2,000			4.26	%
Total - FHLB advances	$	32,222				$	2,000

Junior subordinated debentures due June 15, 2036	2,062			3.76	%	2,062			4.68	%
Other subordinated notes due December 1, 2025	13,500			6.95	%	13,500			6.95	%
Less: Unamortized debt issuance costs	(139		)			(169		)
Total - Other borrowed funds	$	15,423				$	15,393

Related-Party Transactions (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Related Party Transactions

Activity in related-party loans during 2019 and 2018 is shown below:



Related Party Loans
(in thousands)	2019			2018
Balance at beginning of year	$	13,221		$	16,268
Add: New loans	14,583			2,093
Less: Amounts collected	(5,692		)	(3,588		)
Add (deduct): Relationship changes	—			(1,552		)
Balance at end of year	$	22,112		$	13,221

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense are as follows:



Income Tax Expense
	For the Years Ended December 31,
(in thousands)	2019			2018
Current:
Federal	$	5,151		$	3,696
State	1,507			1,427
Total current expense	6,658			5,123
Deferred tax benefit	(839		)	(141		)
Total income tax expense	$	5,819		$	4,982

Schedule of Deferred Tax Assets and Liabilities

The components of the net deferred tax asset at December 31, 2019 and 2018 are:



Net Deferred Tax Asset
(in thousands)	2019		2018
Deferred tax assets:
Allowance for loan and credit losses	$	3,977	$	3,384
Reserve for recourse on mortgage loans sold	158		138
Nonaccrual interest	19		63
Foreclosed real estate write-downs	3		3
Stock-based compensation	251		239
Long-term incentive program	266		189
Core deposit intangible	21		24
Unrealized loss on investment securities available for sale	—		227
Net operating loss carryforward	178		244
	4,873		4,511
Deferred tax liabilities:
Unrealized gains on investment securities available for sale	5		—
Unrealized gain on cash flow hedging derivative	—		2
Unrealized gain on loans held for sale	72		51
Accumulated depreciation	355		516
Deferred casualty gain	1		1
Other	—		43
	433		613
Net deferred tax asset before valuation allowance	4,440		3,898
Less: Valuation allowance	177		244
Net deferred tax asset	$	4,263	$	3,654

Schedule of Effective Income Tax Rate Reconciliation

The differences between the federal income tax rate and the effective tax rate for the Company are reconciled as follows:



Reconciliation of Federal Tax Rate to the Effective Rate
	2019		2018
Statutory federal income tax rate	21.00	%	21.00	%
Increase (decrease) resulting from:
State income taxes, net of federal income tax benefit	6.02		6.35
Nondeductible expenses	0.73		0.42
Tax exempt income	(0.03	)	(0.04	)
Other	(2.10	)	0.34
Effective Tax Rate	25.62	%	28.07	%

Capital Standards (Tables)

12 Months Ended

Dec. 31, 2019

Banking and Thrift [Abstract]

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations



Regulatory Capital
	Actual				Minimum Capital Adequacy				To Be Well Capitalized				Full Phase In of Basel III
(Dollar amounts in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2019
The Company
Tier 1 leverage ratio (to average assets)	$	135,380	9.96	%	$	54,397	4.00	%	N/A		N/A		$	67,996	5.00	%
Tier 1 capital (to risk-weighted assets)	135,380		12.31	%	66,011		6.00	%	N/A		N/A		88,015		8.00	%
Common equity tier 1 capital ratio (to risk-weighted assets)	133,318		12.12	%	$	49,508	4.50	%	N/A		N/A		71,512		6.50	%
Total capital ratio (to risk-weighted assets)	149,142		13.56	%	$	88,015	8.00	%	N/A		N/A		110,018		10.00	%

The Bank
Tier 1 leverage ratio (to average assets)	$	114,613	8.65	%	$	53,005	4.00	%	$	66,256	5.00	%	$	66,256	5.00	%
Tier 1 capital (to risk-weighted assets)	114,613		10.73	%	64,093		6.00	%	85,458		8.00	%	85,458		8.00	%
Common equity tier 1 capital ratio (to risk-weighted assets)	114,613		10.73	%	48,070		4.50	%	69,434		6.50	%	69,434		6.50	%
Total capital ratio (to risk-weighted assets)	127,976		11.98	%	85,458		8.00	%	106,822		10.00	%	106,822		10.00	%

December 31, 2018
The Company
Tier 1 leverage ratio (to average assets)	$	117,220	10.76	%	$	43,575	4.00	%	N/A		N/A		$	43,575	4.00	%
Tier 1 capital (to risk-weighted assets)	117,220		12.95	%	71,259		7.88	%	N/A		N/A		76,914		8.50	%
Common equity tier 1 capital ratio (to risk-weighted assets)	115,158		12.73	%	57,686		6.38	%	N/A		N/A		63,341		7.00	%
Total capital ratio (to risk-weighted assets)	128,544		14.21	%	89,356		9.88	%	N/A		N/A		95,012		10.50	%

The Bank
Tier 1 leverage ratio (to average assets)	$	96,122	9.06	%	$	42,445	4.00	%	$	53,056	5.00	%	$	42,445	4.00	%
Tier 1 capital (to risk-weighted assets)	96,122		11.00	%	68,822		7.88	%	69,914		8.00	%	74,284		8.50	%
Common equity tier 1 capital ratio (to risk-weighted assets)	96,122		11.00	%	55,713		6.38	%	56,805		6.50	%	61,175		7.00	%
Total capital ratio (to risk-weighted assets)	107,061		12.25	%	86,301		9.88	%	87,393		10.00	%	91,763		10.50	%

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based Compensation, Stock Options, Activity

Information with respect to options outstanding during the years ended December 31, 2019 and 2018 is as follows:



Stock Options Outstanding
	2019				2018
	Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
Outstanding at beginning of year	1,431,860		$	9.38	1,363,444		$	8.01
Add: Granted	249,300		14.29		373,750		11.44
Less: Exercised	(221,710	)	6.88		(230,894	)	5.67
Less: Retired on exercise	(141,955	)	6.90		(37,240	)	5.07
Less: Expired/cancelled/forfeited	(9,448	)	10.89		(37,200	)	7.34
Outstanding at end of year	1,308,047		$	11.00	1,431,860		$	9.38
Exercisable at end of year	592,782		$	9.40	643,610		$	7.78

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable

A summary of information about stock options outstanding is as follows:



Stock Option Summary
	Weighted Average Exercise Price		Average Remaining Life (years)	Outstanding Shares		Exercisable Shares
December 31, 2019
	$	7.50	1.0	236,212		231,212
	8.50		2.0	202,435		142,885
	11.38		4.0	346,500		86,635
	11.41		4.0	20,000		—
	12.38		3.0	266,600		130,300
	12.80		3.8	7,000		1,750
	14.54		5.0	229,300		—
Total outstanding options	11.00		3.1	1,308,047		592,782
Intrinsic value on December 31, 2019				$	5,089,032	$	3,256,491

December 31, 2018
	$	6.63	1.0	283,886		268,886
	7.50		2.0	297,348		207,898
	8.50		3.0	222,276		103,176
	11.38		5.0	354,750		—
	12.38		4.0	266,600		63,650
	12.80		4.8	7,000		—
Total outstanding options	9.38		3.1	1,431,860		643,610
Intrinsic value on December 31, 2018				$	3,178,491	$	2,399,743

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The weighted average fair value of options granted during 2019 and 2018 were estimated using the Black-Scholes option-pricing model with the following weighted average assumptions:



Stock Option Pricing Assumptions
	2019	2018
Dividend yield	0.00%	0.00%
Risk free interest rate	1.75%	2.53%
Expected volatility	34.79%	18.94%
Expected life in years	5	5

Schedule of Share-based Compensation, Restricted Stock Units Award Activity

Nonvested restricted stock for the years ended December 31, 2019 and 2018 is summarized in the following table.



Restricted Stock Summary
	2019				2018
	Shares		Weighted Average Grant-Date Fair Value		Shares		Weighted Average Grant-Date Fair Value
Nonvested at beginning of year	38,000		$	10.32	42,000		$	8.66
Add: Granted	—		—		12,000		12.38
Less: Vested	(18,500	)	8.16		(16,000	)	7.50
Less: Forfeited	—		—		—		—
Nonvested at end of year	19,500		$	12.38	38,000		$	10.32

Share Based Compensation, Restricted Stock, Vesting Schedule

The vesting schedule of restricted shares as of December 31, 2019 is as follows:



Restricted Stock Vesting Schedule
Year		Shares
2020		5,500
2021		5,500
2022		5,500
2023		3,000
		19,500

Parent Company Financial Information (Tables)

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Statements



Parent Company Only Balance Sheets

(in thousands)	2019		2018
Assets
Cash and cash equivalents	$	2,391	$	3,768
Investment in Bank	114,626		95,524
Investment in Church Street Capital	3,755		3,284
Investment in Trust	62		62
Loans receivable, net of allowance for loan losses of $258 and $208 at December 31, 2019 and 2018, respectively	28,044		27,032
Accrued interest receivable	98		106
Due from subsidiaries	16		54
Prepaid income taxes	9		90
Deferred income taxes	65		18
Other assets	—		134
Total assets	$	149,066	$	130,072

Liabilities and Stockholders’ Equity
Borrowed funds	$	15,423	$	15,393
Accrued interest payable	82		81
Other Liabilities	230		34
Total liabilities	15,735		15,508
Stockholders’ equity
Common stock	139		137
Additional paid-in capital	51,561		49,321
Retained earnings	81,618		65,701
Accumulated other comprehensive income (loss)	13		(595		)
Total stockholders’ equity	133,331		114,564
Total liabilities and stockholders’ equity	$	149,066	$	130,072



Parent Company Only Statements of Income

(in thousands)	2019			2018
Interest and dividend revenue	$	1,650		$	577
Dividend from Bank	3,500			4,250
Total interest and dividend revenue	5,150			4,827
Interest expense	1,054			1,071
Net interest income	4,096			3,756
Provision for loan losses	50			164
Net interest income after provision for loan losses	4,046			3,592
Noninterest income	5			8
Noninterest expenses	(180		)	(248		)
Income before income taxes	3,871			3,352
Income tax (expense) benefit	(78		)	188
Income before undistributed net income of subsidiaries	3,793			3,540
Equity in undistributed net income of subsidiaries	13,102			9,227
Net income	$	16,895		$	12,767



Parent Company Only Statements of Cash Flows
(in thousands)	2019			2018
Cash flows from operating activities
Net Income	16,895			12,767
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	50			164
Equity in undistributed income-subsidiary	(13,102		)	(9,227		)
(Increase) decrease in receivable from subsidiary bank	38			(148		)
Stock-based compensation expense	795			570
Director and employee compensation paid in Company stock	301			496
Deferred income tax benefit	(47		)	(141		)
Amortization of debt issuance costs	30			32
Changes in assets and liabilities:
Accrued interest receivable	8			(23		)
Prepaid income taxes and taxes payable	81			45
Other assets	(663		)	(169		)
Accrued interest payable	1			(1		)
Other liabilities	195			—
Net cash provided by operating activities	4,582			4,365

Cash flows from investing activities
Net increase in loans receivable	(1,062		)	(19,988		)
Capital injections to subsidiaries	(5,120		)	(367		)
Net cash provided by investing activities	(6,182		)	(20,355		)

Cash flows from financing activities
Repayment of debt	—			(2,000		)
Repurchase of common stock	(371		)	(45		)
Proceeds from exercise of stock options	594			1,043
Proceeds from shares sold	—			198
Proceeds from initial public offering, net	—			19,764
Net cash provided by financing activities	223			18,960

Net increase (decrease) in cash and cash equivalents	(1,377		)	2,970

Cash and cash equivalents, beginning of year	3,768			798

Cash and cash equivalents, end of year	$	2,391		$	3,768

Fair Value (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The Company has categorized its financial instruments measured at fair value on a recurring basis as of December 31, 2019 and 2018 as follows:



Fair Value of Financial Instruments
(in thousands)	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
December 31, 2019	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Investment securities available for sale
U.S. government-sponsored enterprises	$	999	$	—	$	999	$	—
Municipal	528		—		528		—
Corporate	2,565		—		2,565		—
Mortgage-backed securities	56,736		—		56,736		—
	$	60,828	$	—	$	60,828	$	—
Loans held for sale	$	71,030	$	—	$	71,030	$	—
Derivative assets	$	237	$	—	$	237	$	—
Derivative liabilities	$	125	$	—	$	125	$	—

December 31, 2018
Investment securities available for sale
U.S. government-sponsored enterprises	$	17,360	$	—	$	17,360	$	—
Municipal	501		—		501		—
Corporate	2,885		—		2,885		—
Mortgage-backed securities	26,186		—		26,186		—
	$	46,932	$	—	$	46,932	$	—
Loans held for sale	$	18,526	$	—	$	18,526	$	—
Derivative assets	$	172	$	—	$	172	$	—
Derivative liabilities	$	253	$	—	$	253	$	—

Schedule Of Fair Value Of Loans Held For Sale



Fair Value of Loans Held for Sale
(in thousands)
	2019		2018
Loans held for sale
Aggregate fair value	$	71,030	$	18,526
Contractual principal	$	67,118	$	17,822
Difference	$	3,912	$	704

Fair Value Measurements, Nonrecurring



Fair Value of Impaired Loans and Foreclosed Real Estate
(in thousands)
	2019		2018
Impaired loans
Level 1 Inputs	$	—	$	—
Level 2 Inputs	—		—
Level 3 Inputs	3,980		4,093
Total	$	3,980	$	4,093

Foreclosed real estate
Level 1 Inputs	—		—
Level 2 Inputs	—		—
Level 3 Inputs	2,384		142
Total	$	2,384	$	142

Fair Value Measurement Inputs and Valuation Techniques

The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at December 31, 2019 and 2018:



	Inputs
	Valuation Technique	Unobservable Inputs	General Range of Inputs
	Valuation Technique	Unobservable Inputs	General Range of Inputs
Impaired Loans	Appraised Value/Discounted Cash Flows	Discounts to appraisals or cash flows for estimated holding and/or selling costs	0 - 25%
Foreclosed Real Estate	Appraised Value/Comparable Sales	Discounts to appraisals for estimated holding and/or selling costs	0 - 25%

Fair Value Measurements, Recurring and Nonrecurring

Note 17 - Fair Value (continued)

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

Segments Segments (Tables)

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following schedule presents financial information for each reportable segment at December 31, 2019.



Segments

(in thousands)	Commercial Bank		CBHL		OpenSky®		Corporate		Eliminations			Consolidated
Interest income	$	60,385	$	2,901	$	18,394	$	2,330	$	(656	)	$	83,354
Interest expense	14,536		887		—		1,075		(656		)	15,842
Net interest income	45,849		2,014		18,394		1,255		—			67,512
Provision for loan losses	2,015		—		726		50		—			2,791
Noninterest income	744		16,115		7,654		5		—			24,518
Noninterest expense	31,173		14,456		20,654		242		—			66,525
Net income before taxes	$	13,405	$	3,673	$	4,668	$	968	$	—		$	22,714

Total assets	$	1,275,683	$	71,899	$	49,352	$	35,239	$	(3,678	)	$	1,428,495

Quarterly Results of Operations (unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information



Quarterly Results of Operations
(in thousands)
	2019								2018
	Dec 31		Sept 30		Jun 30		Mar 31		Dec 31		Sept 30		Jun 30		Mar 31
Interest Income	$	22,393	$	22,354	$	20,289	$	18,318	$	18,238	$	17,447	$	16,778	$	16,664
Interest Expense	4,339		4,170		3,758		3,574		3,348		2,955		2,657		2,279
Net Interest Income	18,054		18,184		16,531		14,744		14,890		14,492		14,121		14,385
Provision for Loan Losses	921		1,071		677		121		500		495		630		515
Noninterest Income	7,278		7,220		5,927		4,092		3,466		4,240		4,340		4,078
Noninterest Expense	17,757		18,228		16,210		14,330		13,094		13,900		13,529		13,600
Income Before Provision for Income Taxes	6,654		6,105		5,571		4,385		4,762		4,337		4,302		4,348
Provision for Income Taxes	1,581		1,625		1,548		1,066		1,276		1,190		1,158		1,358
Net Income	$	5,073	$	4,480	$	4,023	$	3,319	$	3,486	$	3,147	$	3,144	$	2,990

Basic earnings per common share	$	0.37	$	0.33	$	0.30	$	0.24	$	0.26	$	0.27	$	0.26	$	0.26
Diluted earnings per common share	$	0.36	$	0.32	$	0.29	$	0.24	$	0.25	$	0.26	$	0.26	$	0.25

Nature of Business and Basis of Presentation - Initial Public Offering (Details) - Common Stock - IPO - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2018
Subsidiary, Sale of Stock [Line Items]
Number of shares issued in transaction (in shares)	2,563,046
Sale of stock, price per share (in dollars per share)	$ 12.50
Sale of stock, consideration received	$ 19.8
Underwriting discount and offering costs	$ (3.2)	$ (3.2)
Parent Company
Subsidiary, Sale of Stock [Line Items]
Number of shares issued in transaction (in shares)	1,834,310
Affiliated Entity \| Selling Shareholders
Subsidiary, Sale of Stock [Line Items]
Number of shares issued in transaction (in shares)	728,736

Nature of Business and Basis of Presentation - Additional Information (Details) $ / shares in Units, $ in Thousands		12 Months Ended
	Aug. 15, 2018 $ / shares	Dec. 31, 2019 USD ($) segment $ / shares	Jan. 01, 2019 USD ($)	Dec. 31, 2018 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of reportable business segments \| segment		4
Common stock, par value (in dollars per share) \| $ / shares	$ 0.01	$ 0.01		$ 0.01
Lease asset		$ 5,158	$ 5,158
Lease liability		$ 5,358
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock split, conversion ratio	4
Accounting Standards Update 2016-02
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Lease liability			5,400
Adoption of lease standard			(54)
Accounting Standards Update 2016-02 \| Retained Earnings
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Adoption of lease standard			(54)
Lease Liabilities \| Accounting Standards Update 2016-02
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Adoption of lease standard			146
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Useful lives		2 years
Minimum \| Accounting Standards Update 2016-02
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Lease asset			5,000
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Useful lives		7 years
Maximum \| Accounting Standards Update 2016-02
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Lease asset			$ 5,500

Nature of Business and Basis of Presentation - Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Basic EPS
Net income									$ 16,895	$ 12,767
Weighted average number of shares outstanding, basic (in shares)									13,733,131	12,116,459
Basic earnings per share (in dollars per share)	$ 0.37	$ 0.33	$ 0.30	$ 0.24	$ 0.26	$ 0.27	$ 0.26	$ 0.26	$ 1.23	$ 1.05
Effect of dilutive securities (in shares)									235,454	345,679
Weighted average number of shares outstanding, diluted (in shares)									13,968,585	12,462,138
Diluted earnings per share (in dollars per share)	$ 0.36	$ 0.32	$ 0.29	$ 0.24	$ 0.25	$ 0.26	$ 0.26	$ 0.25	$ 1.21	$ 1.02
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)									7,628	7,000

Nature of Business and Basis of Presentation - Comprehensive Income (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated comprehensive income (loss)	$ 13	$ (595)
Accumulated Net Investment Gain (Loss) Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before tax	18	(825)
Deferred tax benefit (expense)	(5)	227
Total accumulated comprehensive income (loss)	13	(598)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before tax	0	5
Deferred tax benefit (expense)	0	(2)
Total accumulated comprehensive income (loss)	0	3
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated comprehensive income (loss)	$ 13	$ (595)

Nature of Business and Basis of Presentation - New Accounting Pronouncements (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease liability	$ 5,358
Lease asset	5,158	$ 5,158
Retained earnings (accumulated deficit)	$ 81,618		$ 65,701
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease liability		5,400
Minimum \| Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease asset		5,000
Maximum \| Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease asset		$ 5,500

Investment Securities - Amortized cost to Estimated Fair Value (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 60,811	$ 47,757
Unrealized Gains	176	74
Unrealized Losses	(159)	(899)
Fair Value	60,828	46,932
Proceeds from sale of securities available for sale	3,280	345
Gain on sale of investment securities available for sale	37
Loss on sale of investment securities available for sale	(11)	2
U.S. government-sponsored enterprises
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,000	17,496
Unrealized Gains	0	0
Unrealized Losses	(1)	(136)
Fair Value	999	17,360
Municipal
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	515	517
Unrealized Gains	13	0
Unrealized Losses	0	(16)
Fair Value	528	501
Corporate
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,542	2,908
Unrealized Gains	46	28
Unrealized Losses	(23)	(51)
Fair Value	2,565	2,885
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	56,754	26,836
Unrealized Gains	117	46
Unrealized Losses	(135)	(696)
Fair Value	$ 56,736	$ 26,186

Investment Securities - Unrealized Losses (Details) $ in Thousands	Dec. 31, 2019 USD ($) security	Dec. 31, 2018 USD ($)
Fair Value
AFS, Less than 12 Months, Fair Value	$ 21,487	$ 2,790
AFS,12 Months or Longer, Fair Value	6,764	39,259
AFS,Total, Fair Value	28,251	42,049
Unrealized Losses
AFS, Less than 12 months, Unrealized Losses	(78)	(9)
AFS, 12 months or longer, Unrealized Losses	(81)	(890)
AFS, Total, Unrealized Losses	(159)	(899)
U.S. government-sponsored enterprises
Fair Value
AFS, Less than 12 Months, Fair Value	0	496
AFS,12 Months or Longer, Fair Value	999	16,864
AFS,Total, Fair Value	999	17,360
Unrealized Losses
AFS, Less than 12 months, Unrealized Losses	0	(2)
AFS, 12 months or longer, Unrealized Losses	(1)	(134)
AFS, Total, Unrealized Losses	$ (1)	(136)
Number of securities in a loss position for greater than twelve months \| security	1
Municipal
Fair Value
AFS, Less than 12 Months, Fair Value		0
AFS,12 Months or Longer, Fair Value		501
AFS,Total, Fair Value		501
Unrealized Losses
AFS, Less than 12 months, Unrealized Losses		0
AFS, 12 months or longer, Unrealized Losses		(16)
AFS, Total, Unrealized Losses		(16)
Corporate
Fair Value
AFS, Less than 12 Months, Fair Value	$ 0	0
AFS,12 Months or Longer, Fair Value	519	857
AFS,Total, Fair Value	519	857
Unrealized Losses
AFS, Less than 12 months, Unrealized Losses	0	0
AFS, 12 months or longer, Unrealized Losses	(23)	(51)
AFS, Total, Unrealized Losses	$ (23)	(51)
Number of securities in a loss position for greater than twelve months \| security	2
Mortgage-backed securities
Fair Value
AFS, Less than 12 Months, Fair Value	$ 21,487	2,294
AFS,12 Months or Longer, Fair Value	5,246	21,037
AFS,Total, Fair Value	26,733	23,331
Unrealized Losses
AFS, Less than 12 months, Unrealized Losses	(78)	(7)
AFS, 12 months or longer, Unrealized Losses	(57)	(689)
AFS, Total, Unrealized Losses	$ (135)	$ (696)
Number of securities in a loss position for greater than twelve months \| security	4

Investment Securities - Pledged Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Amortized Cost
Assets Sold under Agreements to Repurchase [Line Items]
Securities pledged	$ 1,508	$ 22,745
Fair Value
Assets Sold under Agreements to Repurchase [Line Items]
Securities pledged	1,522	22,524
Securities sold under agreements to repurchase \| Amortized Cost
Assets Sold under Agreements to Repurchase [Line Items]
Securities pledged	0	16,032
Securities sold under agreements to repurchase \| Fair Value
Assets Sold under Agreements to Repurchase [Line Items]
Securities pledged	0	15,862
Federal Home Loan Bank advances \| Amortized Cost
Assets Sold under Agreements to Repurchase [Line Items]
Securities pledged	1,508	6,713
Federal Home Loan Bank advances \| Fair Value
Assets Sold under Agreements to Repurchase [Line Items]
Securities pledged	$ 1,522	$ 6,662

Investment Securities - by Maturity Dates (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Amortized Cost
AFS Debt Maturities, Within one year, Amortized Cost	$ 1,542	$ 16,496
AFS Debt Maturities, Over one to five years, Amortized Cost	0	1,000
AFS Debt Maturities, Over five to ten years, Amortized Cost	2,000	2,000
AFS Debt Maturities, Over ten years, Amortized Cost	515	1,425
Amortized Cost	60,811	47,757
Fair Value
AFS Debt Maturities, Within one year, Fair Value	1,518	16,377
AFS Debt Maturities, Over one to five years, Fair Value	0	983
AFS Debt Maturities, Over five to ten years, Fair Value	2,046	2,028
AFS Debt Maturities, Over ten years, Fair Value	528	1,358
Fair Value	60,828	46,932
Mortgage-backed securities
Amortized Cost
Amortized Cost	56,754	26,836
Fair Value
Fair Value	$ 56,736	$ 26,186

Loans Receivable - Classification of Loans (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	$ 1,173,525	$ 1,002,260
Deferred origination fees, net	(2,404)	(1,992)
Allowance for loan losses	(13,301)	(11,308)	$ (10,033)
Loans receivable, net	1,157,820	988,960
Residential \| Real estate:
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	427,926	407,844
Allowance for loan losses	(4,135)	(3,541)	(3,137)
Commercial
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	151,109	122,264
Allowance for loan losses	(1,548)	(1,578)	(1,497)
Commercial \| Real estate:
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	348,091	278,691
Allowance for loan losses	$ (3,572)	(3,003)	(2,860)
Fixed interest rate term	5 years
Initial commitment term	10 years
Amortization period	25 years
Construction \| Real estate:
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	$ 198,702	157,586
Allowance for loan losses	(2,668)	(2,093)	(1,646)
Consumer \| Credit card
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	46,412	34,673
Allowance for loan losses	(1,368)	(1,084)	(885)
Consumer \| Credit card \| Savings Deposits
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	$ 43,300	32,500
Repayment history used for scoring model	6 months
Consumer \| Other consumer
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	$ 1,285	1,202
Allowance for loan losses	$ (10)	$ (9)	$ (8)
Minimum \| Construction \| Real estate:
Loans and Leases Receivable Disclosure [Line Items]
Initial commitment term	12 months
Maximum \| Construction \| Real estate:
Loans and Leases Receivable Disclosure [Line Items]
Initial commitment term	18 months
Owner Occupied Real Estate \| Residential \| Real estate:
Loans and Leases Receivable Disclosure [Line Items]
Initial commitment term	30 years
Owner Occupied Real Estate \| Commercial \| Real estate:
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	$ 165,400
Percent of real estate portfolio	47.50%
Owner Occupied Real Estate \| Construction \| Real estate:
Loans and Leases Receivable Disclosure [Line Items]
Loan principal to collateral value ratio, percent	80.00%
Owner Occupied Real Estate \| Minimum \| Residential \| Real estate:
Loans and Leases Receivable Disclosure [Line Items]
Fixed interest rate term	5 years
Owner Occupied Real Estate \| Maximum \| Residential \| Real estate:
Loans and Leases Receivable Disclosure [Line Items]
Fixed interest rate term	7 years
Investor Real Estate \| Residential \| Real estate:
Loans and Leases Receivable Disclosure [Line Items]
Initial commitment term	25 years
Balloon payment period	5 years
Covenant compliance, debt service coverage ratio	1.15
Investor Real Estate \| Construction \| Real estate:
Loans and Leases Receivable Disclosure [Line Items]
Loan principal to collateral value ratio, percent	75.00%

Loans Receivable - Accretable Discount (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Remaining nonaccretable discount	$ 285	$ 354
Loans receivable, net	1,100	1,300
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Accretable discount at beginning of period	438	543
Accretion and payoff of loans	(9)	(105)
Accretable discount at end of period	$ 429	$ 438

Loans Receivable - Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of year				$ 11,308				$ 10,033	$ 11,308	$ 10,033
Provision for loan losses	$ 921	$ 1,071	$ 677	121	$ 500	$ 495	$ 630	515	2,791	2,140
Charge-Offs									(832)	(1,096)
Recoveries									34	231
Balance at end of year	13,301				11,308				13,301	11,308
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Individually	119				262				119	262
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Collectively	13,182				11,046				13,182	11,046
Outstanding Loan Balances Evaluated for Impairment - Individually	4,099				4,355				4,099	4,355
Outstanding Loan Balances Evaluated for Impairment - Collectively	1,169,426				997,905				1,169,426	997,905
Residential \| Real estate:
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of year				3,541				3,137	3,541	3,137
Provision for loan losses									634	522
Charge-Offs									(40)	(121)
Recoveries									0	3
Balance at end of year	4,135				3,541				4,135	3,541
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Individually	0				0				0	0
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Collectively	4,135				3,541				4,135	3,541
Outstanding Loan Balances Evaluated for Impairment - Individually	2,192				2,120				2,192	2,120
Outstanding Loan Balances Evaluated for Impairment - Collectively	425,734				405,724				425,734	405,724
Commercial
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of year				1,578				1,497	1,578	1,497
Provision for loan losses									299	194
Charge-Offs									(331)	(147)
Recoveries									2	34
Balance at end of year	1,548				1,578				1,548	1,578
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Individually	119				262				119	262
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Collectively	1,429				1,316				1,429	1,316
Outstanding Loan Balances Evaluated for Impairment - Individually	474				749				474	749
Outstanding Loan Balances Evaluated for Impairment - Collectively	150,635				121,515				150,635	121,515
Commercial \| Real estate:
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of year				3,003				2,860	3,003	2,860
Provision for loan losses									556	13
Charge-Offs									0	(22)
Recoveries									13	152
Balance at end of year	3,572				3,003				3,572	3,003
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Individually	0				0				0	0
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Collectively	3,572				3,003				3,572	3,003
Outstanding Loan Balances Evaluated for Impairment - Individually	1,433				1,486				1,433	1,486
Outstanding Loan Balances Evaluated for Impairment - Collectively	346,658				277,205				346,658	277,205
Construction \| Real estate:
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of year				2,093				1,646	2,093	1,646
Provision for loan losses									575	447
Charge-Offs									0	0
Recoveries									0	0
Balance at end of year	2,668				2,093				2,668	2,093
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Individually	0				0				0	0
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Collectively	2,668				2,093				2,668	2,093
Outstanding Loan Balances Evaluated for Impairment - Individually	0				0				0	0
Outstanding Loan Balances Evaluated for Impairment - Collectively	198,702				157,586				198,702	157,586
Consumer \| Other consumer
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of year				9				8	9	8
Provision for loan losses									1	1
Charge-Offs									0	0
Recoveries									0	0
Balance at end of year	10				9				10	9
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Individually	0				0				0	0
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Collectively	10				9				10	9
Outstanding Loan Balances Evaluated for Impairment - Individually	0				0				0	0
Outstanding Loan Balances Evaluated for Impairment - Collectively	1,285				1,202				1,285	1,202
Consumer \| Credit card
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of year				$ 1,084				$ 885	1,084	885
Provision for loan losses									726	963
Charge-Offs									(461)	(806)
Recoveries									19	42
Balance at end of year	1,368				1,084				1,368	1,084
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Individually	0				0				0	0
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Collectively	1,368				1,084				1,368	1,084
Outstanding Loan Balances Evaluated for Impairment - Individually	0				0				0	0
Outstanding Loan Balances Evaluated for Impairment - Collectively	$ 46,412				$ 34,673				$ 46,412	$ 34,673

Loans Receivable - Past Due Financing Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	$ 11,901	$ 11,111
Current Loans	1,161,624	991,149
Total Loans	1,173,525	1,002,260
Accruing Loans 90 or More days Past Due	620	237
Nonaccrual Loans	4,099	4,442
Loans 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	7,433	7,199
Loans 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	4,468	3,912
Acquired loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	1,548	1,009
Current Loans	4,873	7,275
Total Loans	6,421	8,284
Accruing Loans 90 or More days Past Due	464	235
Nonaccrual Loans	880	582
Acquired loans \| Loans 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	305	521
Acquired loans \| Loans 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	1,243	488
Residential \| Real estate:
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	3,140	3,151
Current Loans	424,786	404,693
Total Loans	427,926	407,844
Accruing Loans 90 or More days Past Due	374	235
Nonaccrual Loans	2,192	2,207
Residential \| Real estate: \| Loans 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	704	1,070
Residential \| Real estate: \| Loans 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	2,436	2,081
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	525	1,010
Current Loans	150,584	121,254
Total Loans	151,109	122,264
Accruing Loans 90 or More days Past Due	0	0
Nonaccrual Loans	474	749
Commercial \| Loans 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	172	612
Commercial \| Loans 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	353	398
Commercial \| Real estate:
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	1,946	3,177
Current Loans	346,145	275,514
Total Loans	348,091	278,691
Accruing Loans 90 or More days Past Due	237	0
Nonaccrual Loans	1,433	1,486
Commercial \| Real estate: \| Loans 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	275	1,746
Commercial \| Real estate: \| Loans 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	1,671	1,431
Construction \| Real estate:
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	756	0
Current Loans	197,946	157,586
Total Loans	198,702	157,586
Accruing Loans 90 or More days Past Due	0	0
Nonaccrual Loans	0	0
Construction \| Real estate: \| Loans 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	756	0
Construction \| Real estate: \| Loans 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	0	0
Consumer \| Credit card
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	5,534	3,773
Current Loans	40,878	30,900
Total Loans	46,412	34,673
Accruing Loans 90 or More days Past Due	9	2
Nonaccrual Loans	0	0
Consumer \| Credit card \| Loans 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	5,526	3,771
Consumer \| Credit card \| Loans 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	8	2
Consumer \| Other consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	0	0
Current Loans	1,285	1,202
Total Loans	1,285	1,202
Accruing Loans 90 or More days Past Due	0	0
Nonaccrual Loans	0	0
Consumer \| Other consumer \| Loans 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	0	0
Consumer \| Other consumer \| Loans 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	$ 0	$ 0

Loans Receivable - Impaired Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	$ 4,360	$ 4,818
Recorded Investment with no Allowance	3,826	3,969
Recorded Investment with Allowance	273	386
Total Recorded Investment	4,099	4,355
Related Allowance	119	262
Average Recorded Investment	4,907	5,565
Interest Recognized	35	28
Total Loans	1,173,525	1,002,260
Acquired loans
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	1,148	775
Recorded Investment with no Allowance	880	497
Recorded Investment with Allowance	0	0
Total Recorded Investment	880	497
Related Allowance	0	0
Average Recorded Investment	1,164	0
Interest Recognized	18	0
Total Loans	6,421	8,284
Residential \| Real estate:
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	2,309	2,411
Recorded Investment with no Allowance	2,192	2,120
Recorded Investment with Allowance	0	0
Total Recorded Investment	2,192	2,120
Related Allowance	0	0
Average Recorded Investment	2,510	2,564
Interest Recognized	8	28
Total Loans	427,926	407,844
Commercial
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	574	856
Recorded Investment with no Allowance	201	363
Recorded Investment with Allowance	273	386
Total Recorded Investment	474	749
Related Allowance	119	262
Average Recorded Investment	777	1,270
Interest Recognized	9	0
Total Loans	151,109	122,264
Commercial \| Real estate:
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	1,477	1,551
Recorded Investment with no Allowance	1,433	1,486
Recorded Investment with Allowance	0	0
Total Recorded Investment	1,433	1,486
Related Allowance	0	0
Average Recorded Investment	1,620	1,591
Interest Recognized	18	0
Total Loans	348,091	278,691
Construction \| Real estate:
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	0	0
Recorded Investment with no Allowance	0	0
Recorded Investment with Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment	0	140
Interest Recognized	0	0
Total Loans	198,702	157,586
Residential Real Estate
Financing Receivable, Impaired [Line Items]
Total Loans	$ 159	$ 221

Loans Receivable - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment [Line Items]
Classified loans	$ 1,173,525	$ 1,002,260
Pass
Financing Receivable, Recorded Investment [Line Items]
Classified loans	1,157,551	987,967
Special Mention
Financing Receivable, Recorded Investment [Line Items]
Classified loans	10,850	7,763
Substandard
Financing Receivable, Recorded Investment [Line Items]
Classified loans	5,124	6,530
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Classified loans	0	0
Residential \| Real estate:
Financing Receivable, Recorded Investment [Line Items]
Classified loans	427,926	407,844
Residential \| Real estate: \| Pass
Financing Receivable, Recorded Investment [Line Items]
Classified loans	425,661	405,532
Residential \| Real estate: \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Classified loans	0	118
Residential \| Real estate: \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Classified loans	2,265	2,194
Residential \| Real estate: \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Classified loans	0	0
Commercial
Financing Receivable, Recorded Investment [Line Items]
Classified loans	151,109	122,264
Commercial \| Pass
Financing Receivable, Recorded Investment [Line Items]
Classified loans	145,178	117,670
Commercial \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Classified loans	4,505	3,844
Commercial \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Classified loans	1,426	750
Commercial \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Classified loans	0	0
Commercial \| Real estate:
Financing Receivable, Recorded Investment [Line Items]
Classified loans	348,091	278,691
Commercial \| Real estate: \| Pass
Financing Receivable, Recorded Investment [Line Items]
Classified loans	340,313	274,247
Commercial \| Real estate: \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Classified loans	6,345	2,958
Commercial \| Real estate: \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Classified loans	1,433	1,486
Commercial \| Real estate: \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Classified loans	0	0
Construction \| Real estate:
Financing Receivable, Recorded Investment [Line Items]
Classified loans	198,702	157,586
Construction \| Real estate: \| Pass
Financing Receivable, Recorded Investment [Line Items]
Classified loans	198,702	154,643
Construction \| Real estate: \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Classified loans	0	843
Construction \| Real estate: \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Classified loans	0	2,100
Construction \| Real estate: \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Classified loans	0	0
Consumer \| Credit card
Financing Receivable, Recorded Investment [Line Items]
Classified loans	46,412	34,673
Consumer \| Credit card \| Pass
Financing Receivable, Recorded Investment [Line Items]
Classified loans	46,412	34,673
Consumer \| Credit card \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Classified loans	0	0
Consumer \| Credit card \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Classified loans	0	0
Consumer \| Credit card \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Classified loans	0	0
Consumer \| Other consumer
Financing Receivable, Recorded Investment [Line Items]
Classified loans	1,285	1,202
Consumer \| Other consumer \| Pass
Financing Receivable, Recorded Investment [Line Items]
Classified loans	1,285	1,202
Consumer \| Other consumer \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Classified loans	0	0
Consumer \| Other consumer \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Classified loans	0	0
Consumer \| Other consumer \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Classified loans	$ 0	$ 0

Loans Receivable - Trouble Debt Restructuring (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) contract	Dec. 31, 2018 USD ($) contract
Financing Receivable, Modifications [Line Items]
Number of Contracts \| contract	5	4
Recorded Investment	$ 459	$ 284
Number of loans charged off \| contract		3
Charged off loan amount		$ 291
Number of loans paid off \| contract		2
Loans paid off, amount		$ 3,200
Acquired loans
Financing Receivable, Modifications [Line Items]
Number of Contracts \| contract	3	3
Recorded Investment		$ 145
Residential \| Real estate:
Financing Receivable, Modifications [Line Items]
Number of Contracts \| contract	3	3
Recorded Investment	$ 145	$ 145
Commercial
Financing Receivable, Modifications [Line Items]
Number of Contracts \| contract	2	1
Recorded Investment	$ 314	$ 139
Performing
Financing Receivable, Modifications [Line Items]
Recorded Investment	0	0
Performing \| Acquired loans
Financing Receivable, Modifications [Line Items]
Recorded Investment	0	0
Performing \| Residential \| Real estate:
Financing Receivable, Modifications [Line Items]
Recorded Investment	0	0
Performing \| Commercial
Financing Receivable, Modifications [Line Items]
Recorded Investment	0	0
Nonperforming
Financing Receivable, Modifications [Line Items]
Recorded Investment	459	284
Nonperforming \| Acquired loans
Financing Receivable, Modifications [Line Items]
Recorded Investment	145	145
Nonperforming \| Residential \| Real estate:
Financing Receivable, Modifications [Line Items]
Recorded Investment	145	145
Nonperforming \| Commercial
Financing Receivable, Modifications [Line Items]
Recorded Investment	$ 314	$ 139
Extended Maturity
Financing Receivable, Modifications [Line Items]
Number of Contracts \| contract	1
Recorded Investment	$ 198
Principal Payment Adjustment
Financing Receivable, Modifications [Line Items]
Number of Contracts \| contract	2
Interest And Payment Terms Changes
Financing Receivable, Modifications [Line Items]
Number of Contracts \| contract	3	3
Interest Rate And Payment Terms Changes And Principal Reduction
Financing Receivable, Modifications [Line Items]
Number of Contracts \| contract		1

Loans Receivable - Outstanding Loan Commitments (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Off-balance sheet risk, allowance	$ 1,200	$ 1,100
Commitments to Extend Credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	260,573	209,209
Letters of credit	5,305	6,216
Commitments to Extend Credit \| Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	41,346	52,083
Commitments to Extend Credit \| Commercial real estate \| Real estate:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	26,507	8,980
Commitments to Extend Credit \| Commercial real estate \| Construction commitments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	18,192	6,358
Commitments to Extend Credit \| Residential real estate \| Real estate:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	13,754	12,853
Commitments to Extend Credit \| Residential real estate \| Construction commitments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	96,807	72,424
Commitments to Extend Credit \| Residential real estate \| Loans Held For Sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	2,646	647
Commitments to Extend Credit \| Consumer \| Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	26,407	27,243
Commitments to Extend Credit \| Consumer \| Secured credit card
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	37,517	29,142
Commitments to Extend Credit \| Consumer \| Personal
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	$ 43	$ 126

Loans Receivable - Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of year				$ 11,308				$ 10,033	$ 11,308	$ 10,033
Provision charged to operating expense	$ 921	$ 1,071	$ 677	121	$ 500	$ 495	$ 630	515	2,791	2,140
Recoveries									34	231
Balance at end of year	13,301				11,308				13,301	11,308
Unfunded Lines of Credit
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of year				1,053				901	1,053	901
Provision charged to operating expense									173	152
Recoveries									0	0
Charge-offs									0	0
Balance at end of year	1,226				1,053				1,226	1,053
Mortgage Loans Sold
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of year				$ 501				$ 457	501	457
Provision charged to operating expense									184	106
Recoveries									0	0
Charge-offs									(109)	(62)
Balance at end of year	$ 576				$ 501				$ 576	$ 501

Premises and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 8,881	$ 8,594
Less: Accumulated depreciation and amortization	6,709	5,619
Premises and equipment	2,172	2,975
Net lease asset	3,920	0
Premises and equipment, net	6,092	2,975
Depreciation and amortization expense	1,113	1,085
Leasehold improvements
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	1,688	1,686
Furniture and equipment
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	4,622	4,430
Vehicle
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	54	54
Software
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	2,517	2,405
Construction in progress
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 0	$ 19

Lease - Additional Information (Details) $ in Thousands	12 Months Ended
Lease - Additional Information (Details) $ in Thousands	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Jan. 01, 2019 branch
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of full service branches \| branch			5
Number of locations \| branch			5
Weighted average discount rate	2.24%
ROU assets	$ 3,920	$ 0
Related lease liabilities	4,291
Rent expense	$ 1,300	$ 1,500
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Remaining term of contract	6 years
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Remaining term of contract	1 year

Lease - Assets and Liabilities and Lease Payment Obligations (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Leases [Abstract]
Lease asset	$ 5,158	$ 5,158
Less: Accumulated amortization	(1,238)
Net lease asset	3,920		$ 0
Lease liability	5,358
Less: Accumulated amortization	(1,067)
Net lease liability	4,291
Amounts due in:
2020	1,265
2021	1,281
2022	921
2023	744
2024	420
Total lease payments	$ 4,631

Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Jan. 07, 2015
Interest Rate Swap
Derivatives, Fair Value [Line Items]
Notional amount			$ 2,000
Fair value of derivative	$ 0	$ 5
Interest Rate Swap \| London Interbank Offered Rate (LIBOR)
Derivatives, Fair Value [Line Items]
Derivative, basis spread on variable rate			1.87%
Forward Contracts \| Forward Sales Agreement
Derivatives, Fair Value [Line Items]
Notional amount	61,000	25,000
Liability, notional amount	22,888	4,256
Fair value of derivative	(125)	(253)
Liability, fair value of derivative	122	108
Interest Rate Lock Commitments \| Interest Rate Contract
Derivatives, Fair Value [Line Items]
Notional amount	32,365	18,776
Designated as Hedging Instrument \| Excluding Best Efforts Basis Commitments \| Interest Rate Lock Commitments \| Interest Rate Contract
Derivatives, Fair Value [Line Items]
Fair value of derivative	$ 115	$ 59

Interest Bearing Deposits - Major Categories (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deposits [Abstract]
Interest-bearing demand accounts	$ 174,166	$ 85,747
Money market accounts	429,078	288,896
Savings	3,675	2,866
Certificates of deposit of $250,000 or more	115,311	99,412
Other time deposits	211,414	236,060
Total interest-bearing deposits	933,644	712,981
Certificates of deposits, brokered	88,800	114,300
Certificate of Deposit Account Registry Service	5,000	$ 45,100
Certificate of deposit, listing services	$ 78,200
Certificate of deposit, listing services, percent of total deposits	6.40%

Interest Bearing Deposits - Maturities (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Deposits [Abstract]
2020	$ 182,379
2021	135,355
2022	7,522
2023	673
2024, and thereafter	796
Certificates of deposit	$ 326,725

Securities Sold Under Agreements to Repurchase (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Amortized Cost
Assets Sold under Agreements to Repurchase [Line Items]
Investment securities pledged to secure the underlying agreements at year end:	$ 1,508	$ 22,745
Fair Value
Assets Sold under Agreements to Repurchase [Line Items]
Investment securities pledged to secure the underlying agreements at year end:	1,522	22,524
Securities sold under agreements to repurchase
Assets Sold under Agreements to Repurchase [Line Items]
Average amount outstanding	$ 1,287	$ 10,596
Average rate paid during the year	1.75%	1.38%
Maximum amount outstanding at month end	$ 3,400	$ 12,445
Securities sold under agreements to repurchase \| Amortized Cost
Assets Sold under Agreements to Repurchase [Line Items]
Investment securities pledged to secure the underlying agreements at year end:	0	16,032
Securities sold under agreements to repurchase \| Fair Value
Assets Sold under Agreements to Repurchase [Line Items]
Investment securities pledged to secure the underlying agreements at year end:	$ 0	$ 15,862

Borrowed Funds - Schedule of Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Nov. 24, 2015
Debt Instrument [Line Items]
Total - Federal funds purchased	$ 0	$ 2,000
Total - FHLB advances	32,222	$ 2,000
Interest		0.00%
Less: Unamortized debt issuance costs	(139)	$ (169)
Total - Other borrowed funds	15,423	15,393
FHLB principal reducing advances due May 10, 2022
Debt Instrument [Line Items]
Total - FHLB advances	$ 32,222	0
Interest	2.40%
FHLB advance due March 25, 2019
Debt Instrument [Line Items]
Total - FHLB advances	$ 0	$ 2,000
Interest	0.00%	4.26%
Junior Subordinated Debt \| Junior subordinated debentures due June 15, 2036
Debt Instrument [Line Items]
Interest	3.76%	4.68%
Long-term debt, gross	$ 2,062	$ 2,062
Senior Subordinated Notes \| Other subordinated notes due December 1, 2025
Debt Instrument [Line Items]
Interest	6.95%	6.95%	6.95%
Long-term debt, gross	$ 13,500	$ 13,500
Correspondent Banks \| Line of Credit
Debt Instrument [Line Items]
Total - Federal funds purchased	$ 0	$ 2,000
Interest	0.00%	3.28%

Borrowed Funds - Additional Information (Details) - USD ($)		12 Months Ended
	Nov. 24, 2015	Dec. 31, 2019	Dec. 31, 2018	Jun. 15, 2006
Debt Instrument [Line Items]
Interest rate			0.00%
Federal funds purchased		$ 0	$ 2,000,000
Federal home loan bank advances		32,222,000	2,000,000
Certificates of deposits, brokered		$ 88,800,000	$ 114,300,000
Junior Subordinated Debt \| Junior subordinated debentures due June 15, 2036
Debt Instrument [Line Items]
Interest rate		3.76%	4.68%
Junior Subordinated Debt \| Junior subordinated debentures due June 15, 2036 \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate		1.89%
Senior Subordinated Notes \| Other subordinated notes due December 1, 2025
Debt Instrument [Line Items]
Face amount	$ 13,500,000
Basis spread on variable rate	5.33%
Interest rate	6.95%	6.95%	6.95%
Debt issuance costs	$ 278,231
Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 28,000,000
Capital Securities \| Junior Subordinated Debt \| Junior subordinated debentures due June 15, 2036
Debt Instrument [Line Items]
Securities issued (in shares)				2,000
Face amount				$ 2,000,000
Common Securities \| Junior Subordinated Debt \| Junior subordinated debentures due June 15, 2036
Debt Instrument [Line Items]
Face amount				$ 62,000
Correspondent Banks \| Line of Credit
Debt Instrument [Line Items]
Interest rate		0.00%	3.28%
Federal funds purchased		$ 0	$ 2,000,000
Federal Home Loan Bank \| Line of Credit
Debt Instrument [Line Items]
FHLB maximum borrowing capacity, percent of assets		25.00%
FHLB available borrowing capacity		$ 140,500,000	185,600,000
Financial Network \| Certificates of Deposit
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 209,500,000	161,200,000
Maximum borrowing capacity, percent of assets		15.00%
Pledged Loans \| Federal Home Loan Bank \| Line of Credit
Debt Instrument [Line Items]
Current borrowing capacity		$ 193,700,000	235,200,000
Pledged Loans \| Federal Reserve Bank Of Richmond \| Line of Credit
Debt Instrument [Line Items]
Current borrowing capacity		12,500,000	13,100,000
Federal home loan bank advances		0	0
Collateral Pledged \| Federal Home Loan Bank \| Line of Credit
Debt Instrument [Line Items]
Investments at fair value		$ 1,500,000	$ 6,700,000

Retirement Plan (Details) - USD ($) $ in Thousands	12 Months Ended
Retirement Plan (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Retirement Benefits [Abstract]
Company's contribution, percent of eligible compensation	3.00%
Company's contribution to the plan	$ 691	$ 553

Related-Party Transactions - Activity in Related Party Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Loans and Leases Receivable, Related Parties [Roll Forward]
Balance at beginning of year	$ 13,221	$ 16,268
Add: New loans	14,583	2,093
Less: Amounts collected	(5,692)	(3,588)
Add (deduct): Relationship changes	0	(1,552)
Balance at end of year	$ 22,112	$ 13,221

Related-Party Transactions - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Officers and Directors
Related Party Transaction [Line Items]
Related party deposits	$ 141,300	$ 155,800
Director
Related Party Transaction [Line Items]
Notes payable, related parties	171	4,500
Director \| Lease Payments
Related Party Transaction [Line Items]
Expenses from transactions with related party	74	566
Convertible Subordinated Notes \| Director
Related Party Transaction [Line Items]
Notes payable, related parties	1,000	1,000
Church Street Capital \| Director
Related Party Transaction [Line Items]
Due to subsidiaries	$ 364	$ 2,000

Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Current:
Federal									$ 5,151	$ 3,696
State									1,507	1,427
Total current expense									6,658	5,123
Deferred tax benefit									(839)	(141)
Total income tax expense	$ 1,581	$ 1,625	$ 1,548	$ 1,066	$ 1,276	$ 1,190	$ 1,158	$ 1,358	$ 5,819	$ 4,982

Income Taxes - Components of Net Deferred Tax Asset (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Allowance for loan and credit losses	$ 3,977,000	$ 3,384,000
Reserve for recourse on mortgage loans sold	158,000	138,000
Nonaccrual interest	19,000	63,000
Foreclosed real estate write-downs	3,000	3,000
Stock-based compensation	251,000	239,000
Long-term incentive program	266,000	189,000
Core deposit intangible	21,000	24,000
Unrealized loss on investment securities available for sale	0	227,000
Net operating loss carryforward	178,000	244,000
Deferred tax assets, gross	4,873,000	4,511,000
Deferred tax liabilities:
Unrealized gains on investment securities available for sale	5,000	0
Unrealized gain on cash flow hedging derivative	0	2,000
Unrealized gain on loans held for sale	72,000	51,000
Accumulated depreciation	355,000	516,000
Deferred casualty gain	1,000	1,000
Other	0	43,000
Deferred tax liabilities, gross	433,000	613,000
Net deferred tax asset before valuation allowance	4,440,000	3,898,000
Less: Valuation allowance	177,000	244,000
Net deferred tax asset	$ 4,263,000	$ 3,654,000

Income Taxes - Reconciliation of Federal Tax Rate to the Effective Rate (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Statutory federal income tax rate	21.00%	21.00%
State income taxes, net of federal income tax benefit	6.02%	6.35%
Nondeductible expenses	0.73%	0.42%
Tax exempt income	(0.03%)	(0.04%)
Other	(2.10%)	0.34%
Effective Tax Rate	25.62%	28.07%

Capital Standards (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Tier 1 leverage ratio (to average assets)
Tier One Leverage Capital	$ 135,380	$ 117,220
Tier One Leverage Capital to Average Assets	9.96%	10.76%
Tier One Leverage Capital Required for Capital Adequacy	$ 54,397	$ 43,575
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	4.00%	4.00%
Tier One Leverage Capital Full Phase In Of Base III	$ 67,996	$ 43,575
Tier One Leverage Capital Full Phase In Of Base III To Average Assets	5.00%	4.00%
Tier 1 capital (to risk-weighted assets)
Tier One Risk Based Capital	$ 135,380	$ 117,220
Tier One Risk Based Capital to Risk Weighted Assets	12.31%	12.95%
Tier One Risk Based Capital Required for Capital Adequacy	$ 66,011	$ 71,259
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	6.00%	7.88%
Tier One Risk Based Capital Full Phase In Of Base III	$ 88,015	$ 76,914
Tier One Risk Based Capital Full Phase In Of Base III To Risk Weighted Assets	8.00%	8.50%
Common equity tier 1 capital ratio (to risk-weighted assets)
Common Equity Tier One Capital	$ 133,318	$ 115,158
Common Equity Tier One Capital Ratio	12.12%	12.73%
Common Equity Tier One Capital Required for Capital Adequacy	$ 49,508	$ 57,686
Common Equity Tier One Capital Required For Capital Adequacy To Risk Weighted Assets	4.50%	6.38%
Common Equity Tier One Capital Full Phase In Of Base III	$ 71,512	$ 63,341
Common Equity Tier One Capital Full PHase In Of Base III To Risk Weighted Assets	6.50%	7.00%
Total capital ratio (to risk-weighted assets)
Capital	$ 149,142	$ 128,544
Capital to Risk Weighted Assets	13.56%	14.21%
Capital Required for Capital Adequacy	$ 88,015	$ 89,356
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%	9.88%
Capital Full Phase In Of Base III	$ 110,018	$ 95,012
Capital Full Phase In Of Base III To Risk Weighted Assets	10.00%	10.50%
The Bank
Tier 1 leverage ratio (to average assets)
Tier One Leverage Capital	$ 114,613	$ 96,122
Tier One Leverage Capital to Average Assets	8.65%	9.06%
Tier One Leverage Capital Required for Capital Adequacy	$ 53,005	$ 42,445
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	4.00%	4.00%
Tier One Leverage Capital Required to be Well Capitalized	$ 66,256	$ 53,056
Tier One Leverage Capital Required to be Well Capitalized to Average Assets	5.00%	5.00%
Tier One Leverage Capital Full Phase In Of Base III	$ 66,256	$ 42,445
Tier One Leverage Capital Full Phase In Of Base III To Average Assets	5.00%	4.00%
Tier 1 capital (to risk-weighted assets)
Tier One Risk Based Capital	$ 114,613	$ 96,122
Tier One Risk Based Capital to Risk Weighted Assets	10.73%	11.00%
Tier One Risk Based Capital Required for Capital Adequacy	$ 64,093	$ 68,822
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	6.00%	7.88%
Tier One Risk Based Capital Required to be Well Capitalized	$ 85,458	$ 69,914
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	8.00%	8.00%
Tier One Risk Based Capital Full Phase In Of Base III	$ 85,458	$ 74,284
Tier One Risk Based Capital Full Phase In Of Base III To Risk Weighted Assets	8.00%	8.50%
Common equity tier 1 capital ratio (to risk-weighted assets)
Common Equity Tier One Capital	$ 114,613	$ 96,122
Common Equity Tier One Capital Ratio	10.73%	11.00%
Common Equity Tier One Capital Required for Capital Adequacy	$ 48,070	$ 55,713
Common Equity Tier One Capital Required For Capital Adequacy To Risk Weighted Assets	4.50%	6.38%
Common Equity Tier One Capital Required to be Well-Capitalized	$ 69,434	$ 56,805
Common Equity Tier One Capital To Be Well Capitalized To Risk Weighted Assets	6.50%	6.50%
Common Equity Tier One Capital Full Phase In Of Base III	$ 69,434	$ 61,175
Common Equity Tier One Capital Full PHase In Of Base III To Risk Weighted Assets	6.50%	7.00%
Total capital ratio (to risk-weighted assets)
Capital	$ 127,976	$ 107,061
Capital to Risk Weighted Assets	11.98%	12.25%
Capital Required for Capital Adequacy	$ 85,458	$ 86,301
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%	9.88%
Capital Required to be Well Capitalized	$ 106,822	$ 87,393
Capital Required to be Well Capitalized to Risk Weighted Assets	10.00%	10.00%
Capital Full Phase In Of Base III	$ 106,822	$ 91,763
Capital Full Phase In Of Base III To Risk Weighted Assets	10.00%	10.50%

Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) plan $ / shares shares	Dec. 31, 2018 USD ($) $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 858	$ 724
Weighted average grant date fair value \| $ / shares	$ 4.30	$ 2.56
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of incentive compensation plans \| plan	2
Number of shares authorized (in shares) \| shares	1,120,000
Number of shares available for grant (in shares) \| shares	302,363
Award vesting period	4 years
Awards exercisable each anniversary of grant date, percent	25.00%
Unrecognized compensation expense period for recognition	5 years
Unrecognized compensation expense	$ 1,700	$ 1,400
Exercises in period, intrinsic value	1,800	1,300
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense (awards other than options)	$ 176	$ 230

Stock-Based Compensation - Stock Options Outstanding (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning of year (in shares)	1,431,860	1,363,444
Add: Granted (in shares)	249,300	373,750
Less: Exercised (in shares)	(221,710)	(230,894)
Less: Retired on exercise (in shares)	(141,955)	(37,240)
Less: Expired/cancelled/forfeited (in shares)	(9,448)	(37,200)
Outstanding at end of year (in shares)	1,308,047	1,431,860
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding at beginning of year (in dollars per share)	$ 9.38	$ 8.01
Add: Granted (in dollars per share)	14.29	11.44
Less: Exercised (in dollars per share)	6.88	5.67
Less: Retired on exercise (in dollars per share)	6.90	5.07
Less: Expired/cancelled/forfeited (in dollars per share)	10.89	7.34
Outstanding at end of year (in dollars per share)	$ 11.00	$ 9.38
Exercisable at end of year (in shares)	592,782	643,610
Exercisable at end of year (in dollars per share)	$ 9.40	$ 7.78

Stock-Based Compensation - Stock Option Summary (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Exercise Price (in dollars per share)	$ 11.00	$ 9.38	$ 8.01
Average Remaining Life (years)	3 years 1 month 6 days	3 years 1 month 6 days
Outstanding Shares (in shares)	1,308,047	1,431,860	1,363,444
Exercisable Shares (in shares)	592,782	643,610
Outstanding Shares, intrinsic value	$ 5,089,032	$ 3,178,491
Exercisable Shares, intrinsic value	$ 3,256,491	$ 2,399,743
Exercise Price Range 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Exercise Price (in dollars per share)	$ 7.50	$ 6.63
Average Remaining Life (years)	1 year	1 year
Outstanding Shares (in shares)	236,212	283,886
Exercisable Shares (in shares)	231,212	268,886
Exercise Price Range 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Exercise Price (in dollars per share)	$ 8.50	$ 7.50
Average Remaining Life (years)	2 years	2 years
Outstanding Shares (in shares)	202,435	297,348
Exercisable Shares (in shares)	142,885	207,898
Exercise Price Range 3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Exercise Price (in dollars per share)	$ 11.38	$ 8.50
Average Remaining Life (years)	4 years	3 years
Outstanding Shares (in shares)	346,500	222,276
Exercisable Shares (in shares)	86,635	103,176
Exercise Price Range 4
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Exercise Price (in dollars per share)	$ 11.41	$ 11.38
Average Remaining Life (years)	4 years	5 years
Outstanding Shares (in shares)	20,000	354,750
Exercisable Shares (in shares)	0	0
Exercise Price Range 5
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Exercise Price (in dollars per share)	$ 12.38	$ 12.38
Average Remaining Life (years)	3 years	4 years
Outstanding Shares (in shares)	266,600	266,600
Exercisable Shares (in shares)	130,300	63,650
Exercise Price Range 6
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Exercise Price (in dollars per share)	$ 12.80	$ 12.80
Average Remaining Life (years)	3 years 9 months 18 days	4 years 9 months 18 days
Outstanding Shares (in shares)	7,000	7,000
Exercisable Shares (in shares)	1,750	0
Exercise Price Range 7
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Exercise Price (in dollars per share)	$ 14.54
Average Remaining Life (years)	5 years
Outstanding Shares (in shares)	229,300
Exercisable Shares (in shares)	0

Stock-Based Compensation - Stock Option Pricing Assumptions (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Dividend yield	0.00%	0.00%
Risk free interest rate	1.75%	2.53%
Expected volatility	34.79%	18.94%
Expected life in years	5 years	5 years

Stock-Based Compensation - Restricted Stock Summary (Details) - Restricted Stock - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested at beginning of year (in shares)	38,000	42,000
Add: Granted (in shares)	0	12,000
Less: Vested (in shares)	(18,500)	(16,000)
Less: Forfeited (in shares)	0	0
Nonvested at end of year (in shares)	19,500	38,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Nonvested at beginning of year (in dollars per share)	$ 10.32	$ 8.66
Add: Granted (in dollars per share)	0.00	12.38
Less: Vested (in dollars per share)	8.16	7.50
Less: Forfeited (in dollars per share)	0.00	0.00
Nonvested at end of year (in dollars per share)	$ 12.38	$ 10.32

Stock-Based Compensation - Restricted Stock Vesting Schedule (Details) - Restricted Stock - shares	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
2020	5,500
2021	5,500
2022	5,500
2023	3,000
Nonvested restricted stock	19,500	38,000	42,000

Parent Company Financial Information - Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets
Loans receivable, net of allowance for loan losses of $258 and $208 at December 31, 2019 and 2018, respectively	$ 1,157,820	$ 988,960
Allowance for loan losses	13,301	11,308	$ 10,033
Accrued interest receivable	4,770	4,462
Deferred income taxes	4,263	3,654
Other assets	2,518	2,181
Total assets	1,428,495	1,105,058
Liabilities
Borrowed funds	15,423	15,393
Accrued interest payable	1,801	1,565
Other liabilities	20,297	10,964
Total liabilities	1,295,164	990,494
Stockholders' equity
Common stock	139	137
Additional paid-in capital	51,561	49,321
Retained earnings	81,618	65,701
Accumulated other comprehensive income (loss)	13	(595)
Total stockholders' equity	133,331	114,564	80,119
Liabilities and Equity	1,428,495	1,105,058
Parent Company
Assets
Cash and cash equivalents	2,391	3,768	$ 798
Loans receivable, net of allowance for loan losses of $258 and $208 at December 31, 2019 and 2018, respectively	28,044	27,032
Allowance for loan losses	258	208
Accrued interest receivable	98	106
Due from subsidiaries	16	54
Prepaid income taxes	9	90
Deferred income taxes	65	18
Other assets	0	134
Total assets	149,066	130,072
Liabilities
Borrowed funds	15,423	15,393
Accrued interest payable	82	81
Other liabilities	230	34
Total liabilities	15,735	15,508
Stockholders' equity
Common stock	139	137
Additional paid-in capital	51,561	49,321
Retained earnings	81,618	65,701
Accumulated other comprehensive income (loss)	13	(595)
Total stockholders' equity	133,331	114,564
Liabilities and Equity	149,066	130,072
Bank \| Parent Company
Assets
Investment	114,626	95,524
Church Street Capital \| Parent Company
Assets
Investment	3,755	3,284
Trust \| Parent Company
Assets
Investment	$ 62	$ 62

Parent Company Financial Information - Statements of Income (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Condensed Income Statements, Captions [Line Items]
Total interest income	$ 22,393	$ 22,354	$ 20,289	$ 18,318	$ 18,238	$ 17,447	$ 16,778	$ 16,664	$ 83,354	$ 69,127
Interest expense	4,339	4,170	3,758	3,574	3,348	2,955	2,657	2,279	15,842	11,239
Net interest income	18,054	18,184	16,531	14,744	14,890	14,492	14,121	14,385	67,512	57,888
Provision for loan losses	921	1,071	677	121	500	495	630	515	2,791	2,140
Net interest income after provision for loan losses									64,721	55,748
Noninterest income	7,278	7,220	5,927	4,092	3,466	4,240	4,340	4,078	24,518	16,124
Noninterest expense	17,757	18,228	16,210	14,330	13,094	13,900	13,529	13,600	66,525	54,123
Income before income taxes	6,654	6,105	5,571	4,385	4,762	4,337	4,302	4,348	22,714	17,749
Income tax (expense) benefit	(1,581)	(1,625)	(1,548)	(1,066)	(1,276)	(1,190)	(1,158)	(1,358)	(5,819)	(4,982)
Net income	$ 5,073	$ 4,480	$ 4,023	$ 3,319	$ 3,486	$ 3,147	$ 3,144	$ 2,990	16,895	12,767
Parent Company
Condensed Income Statements, Captions [Line Items]
Interest and dividend revenue									1,650	577
Total interest income									5,150	4,827
Interest expense									1,054	1,071
Net interest income									4,096	3,756
Provision for loan losses									50	164
Net interest income after provision for loan losses									4,046	3,592
Noninterest income									5	8
Noninterest expense									(180)	(248)
Income before income taxes									3,871	3,352
Income tax (expense) benefit									(78)	188
Income before undistributed net income of subsidiaries									3,793	3,540
Equity in undistributed net income of subsidiaries									13,102	9,227
Net income									16,895	12,767
Bank \| Parent Company
Condensed Income Statements, Captions [Line Items]
Dividend from Bank									$ 3,500	$ 4,250

Parent Company Financial Information - Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities
Net income	$ 5,073	$ 4,480	$ 4,023	$ 3,319	$ 3,486	$ 3,147	$ 3,144	$ 2,990	$ 16,895	$ 12,767
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	921	$ 1,071	$ 677	121	500	$ 495	$ 630	515	2,791	2,140
Stock-based compensation expense									795	570
Director and employee compensation paid in Company stock									301	496
Deferred income tax benefit									(839)	(141)
Amortization of debt issuance expense									30	32
Changes in assets and liabilities:
Accrued interest receivable									(308)	(595)
Prepaid income taxes and taxes payable									81	1,529
Other assets									(418)	4
Accrued interest payable									236	481
Other liabilities									3,752	1,334
Net cash (used) provided by operating activities									(26,346)	28,302
Cash flows from investing activities
Net cash used by investing activities									(188,847)	(109,263)
Cash flows from financing activities
Repurchase of common stock									(371)	(45)
Proceeds from exercise of stock options									595	1,043
Proceeds from shares sold									0	198
Proceeds from initial public offering, net									0	19,764
Net cash provided by financing activities									295,294	63,373
Net increase (decrease) in cash and cash equivalents									80,101	(17,588)
Parent Company
Cash flows from operating activities
Net income									16,895	12,767
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses									50	164
Equity in undistributed income-subsidiary									(13,102)	(9,227)
(Increase) decrease in receivable from subsidiary bank									38	(148)
Stock-based compensation expense									795	570
Director and employee compensation paid in Company stock									301	496
Deferred income tax benefit									(47)	(141)
Amortization of debt issuance expense									30	32
Changes in assets and liabilities:
Accrued interest receivable									8	(23)
Prepaid income taxes and taxes payable									81	45
Other assets									(663)	(169)
Accrued interest payable									1	(1)
Other liabilities									195	0
Net cash (used) provided by operating activities									4,582	4,365
Cash flows from investing activities
Net increase in loans receivable									(1,062)	(19,988)
Capital injections to subsidiaries									(5,120)	(367)
Net cash used by investing activities									(6,182)	(20,355)
Cash flows from financing activities
Repayment of debt									0	(2,000)
Repurchase of common stock									(371)	(45)
Proceeds from exercise of stock options									594	1,043
Proceeds from shares sold									0	198
Proceeds from initial public offering, net									0	19,764
Net cash provided by financing activities									223	18,960
Net increase (decrease) in cash and cash equivalents									(1,377)	2,970
Cash and cash equivalents, beginning of year				$ 3,768				$ 798	3,768	798
Cash and cash equivalents, end of year	$ 2,391				$ 3,768				$ 2,391	$ 3,768

Fair Value - Financial Instruments Measured at FV on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	$ 60,828	$ 46,932
Loans held for sale	71,030	18,526
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	60,828	46,932
Loans held for sale	71,030	18,526
Derivative assets	237	172
Derivative liabilities	125	253
Fair Value, Measurements, Recurring \| Level 1 Inputs
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
Derivative assets	0	0
Derivative liabilities	0	0
Fair Value, Measurements, Recurring \| Level 2 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	60,828	46,932
Loans held for sale	71,030	18,526
Derivative assets	237	172
Derivative liabilities	125	253
Fair Value, Measurements, Recurring \| Level 3 Inputs
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
Derivative assets	0	0
Derivative liabilities	0	0
U.S. government-sponsored enterprises
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	999	17,360
U.S. government-sponsored enterprises \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	999	17,360
U.S. government-sponsored enterprises \| Fair Value, Measurements, Recurring \| Level 1 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
U.S. government-sponsored enterprises \| Fair Value, Measurements, Recurring \| Level 2 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	999	17,360
U.S. government-sponsored enterprises \| Fair Value, Measurements, Recurring \| Level 3 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Municipal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	528	501
Municipal \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	528	501
Municipal \| Fair Value, Measurements, Recurring \| Level 1 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Municipal \| Fair Value, Measurements, Recurring \| Level 2 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	528	501
Municipal \| Fair Value, Measurements, Recurring \| Level 3 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	2,565	2,885
Corporate \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	2,565	2,885
Corporate \| Fair Value, Measurements, Recurring \| Level 1 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Corporate \| Fair Value, Measurements, Recurring \| Level 2 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	2,565	2,885
Corporate \| Fair Value, Measurements, Recurring \| Level 3 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	56,736	26,186
Mortgage-backed securities \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	56,736	26,186
Mortgage-backed securities \| Fair Value, Measurements, Recurring \| Level 1 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Mortgage-backed securities \| Fair Value, Measurements, Recurring \| Level 2 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	56,736	26,186
Mortgage-backed securities \| Fair Value, Measurements, Recurring \| Level 3 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	$ 0	$ 0

Fair Value - Loans Held For Sale (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale	$ 71,030	$ 18,526
Aggregate fair value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale	71,030	18,526
Contractual principal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale	67,118	17,822
Difference
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale	$ 3,912	$ 704

Fair Value - Impaired Loans and Foreclosed Real Estate (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, net	$ 273	$ 386
Impaired loans, valuation allowance	119	262
Impaired loans	4,099	4,355
Foreclosed real estate	2,384	142
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreclosed real estate	2,384
Fair Value, Measurements, Nonrecurring \| Level 1 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Foreclosed real estate	0	0
Fair Value, Measurements, Nonrecurring \| Level 2 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Foreclosed real estate	0	0
Fair Value, Measurements, Nonrecurring \| Level 3 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, net	4,100	4,400
Impaired loans, valuation allowance	119	262
Impaired loans	3,980	4,093
Foreclosed real estate	$ 2,384	$ 142
Minimum \| Level 3 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, discounts to appraisals or cash flows for estimated holding and/or selling costs, percent	0.00%
Foreclosed real estate, discounts to appraisals for estimated holding and/or selling costs, percent	0.00%
Maximum \| Level 3 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, discounts to appraisals or cash flows for estimated holding and/or selling costs, percent	25.00%
Foreclosed real estate, discounts to appraisals for estimated holding and/or selling costs, percent	25.00%

Fair Value - Financial Instruments Carrying Amount, FV and Placement (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financial assets
Cash and due from banks	$ 10,530	$ 10,431
Interest bearing deposits at other financial institutions	102,447	22,007
Federal funds sold	1,847	2,285
Contractual principal \| Level 1 Inputs
Financial assets
Cash and due from banks	10,530	10,431
Interest bearing deposits at other financial institutions	102,447	22,007
Federal funds sold	1,847	2,285
Restricted investments	3,966	2,503
Financial liabilities
Noninterest-bearing deposits	291,777	242,259
Securities sold under agreements to repurchase	0	3,332
Contractual principal \| Level 3 Inputs
Financial assets
Loans receivable, net	1,157,820	988,960
Financial liabilities
Interest-bearing deposits	933,644	712,981
FHLB advances and other borrowed funds	47,645	19,393
Aggregate fair value \| Level 1 Inputs
Financial assets
Cash and due from banks	10,530	10,431
Interest bearing deposits at other financial institutions	102,447	22,007
Federal funds sold	1,847	2,285
Restricted investments	3,966	2,503
Financial liabilities
Noninterest-bearing deposits	291,777	242,259
Securities sold under agreements to repurchase	0	3,332
Aggregate fair value \| Level 3 Inputs
Financial assets
Loans receivable, net	1,155,922	979,058
Financial liabilities
Interest-bearing deposits	934,349	711,876
FHLB advances and other borrowed funds	$ 47,678	$ 19,447

Segments (Details) $ in Thousands	3 Months Ended								12 Months Ended
Segments (Details) $ in Thousands	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2019 USD ($) segment	Dec. 31, 2018 USD ($)
Segment Reporting Information [Line Items]
Number of reportable business segments \| segment									4
Interest Income	$ 22,393	$ 22,354	$ 20,289	$ 18,318	$ 18,238	$ 17,447	$ 16,778	$ 16,664	$ 83,354	$ 69,127
Interest expense	4,339	4,170	3,758	3,574	3,348	2,955	2,657	2,279	15,842	11,239
Net interest income	18,054	18,184	16,531	14,744	14,890	14,492	14,121	14,385	67,512	57,888
Provision for loan losses	921	1,071	677	121	500	495	630	515	2,791	2,140
Noninterest income	7,278	7,220	5,927	4,092	3,466	4,240	4,340	4,078	24,518	16,124
Noninterest expense	17,757	18,228	16,210	14,330	13,094	13,900	13,529	13,600	66,525	54,123
Net income before taxes	6,654	$ 6,105	$ 5,571	$ 4,385	4,762	$ 4,337	$ 4,302	$ 4,348	22,714	17,749
Total assets	1,428,495				$ 1,105,058				1,428,495	$ 1,105,058
Operating Segments \| Commercial Bank
Segment Reporting Information [Line Items]
Interest Income									60,385
Interest expense									14,536
Net interest income									45,849
Provision for loan losses									2,015
Noninterest income									744
Noninterest expense									31,173
Net income before taxes									13,405
Total assets	1,275,683								1,275,683
Operating Segments \| CBHL
Segment Reporting Information [Line Items]
Interest Income									2,901
Interest expense									887
Net interest income									2,014
Provision for loan losses									0
Noninterest income									16,115
Noninterest expense									14,456
Net income before taxes									3,673
Total assets	71,899								71,899
Operating Segments \| OpenSky®
Segment Reporting Information [Line Items]
Interest Income									18,394
Interest expense									0
Net interest income									18,394
Provision for loan losses									726
Noninterest income									7,654
Noninterest expense									20,654
Net income before taxes									4,668
Total assets	49,352								49,352
Corporate
Segment Reporting Information [Line Items]
Interest Income									2,330
Interest expense									1,075
Net interest income									1,255
Provision for loan losses									50
Noninterest income									5
Noninterest expense									242
Net income before taxes									968
Total assets	35,239								35,239
Eliminations
Segment Reporting Information [Line Items]
Interest Income									(656)
Interest expense									(656)
Net interest income									0
Provision for loan losses									0
Noninterest income									0
Noninterest expense									0
Net income before taxes									0
Total assets	$ (3,678)								$ (3,678)

Litigation (Details) - Lawsuit In Circuit Court For Montgomery County, Maryland - Settled Litigation $ in Thousands	1 Months Ended	3 Months Ended
	Apr. 30, 2019 USD ($)	Mar. 31, 2019 defendant
Loss Contingencies [Line Items]
Number of other banking institutions, defendants \| defendant		2
Litigation settlement, expense \| $	$ 200

Quarterly Results of Operations (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Interest Income	$ 22,393	$ 22,354	$ 20,289	$ 18,318	$ 18,238	$ 17,447	$ 16,778	$ 16,664	$ 83,354	$ 69,127
Interest Expense	4,339	4,170	3,758	3,574	3,348	2,955	2,657	2,279	15,842	11,239
Net interest income	18,054	18,184	16,531	14,744	14,890	14,492	14,121	14,385	67,512	57,888
Provision for loan losses	921	1,071	677	121	500	495	630	515	2,791	2,140
Noninterest Income	7,278	7,220	5,927	4,092	3,466	4,240	4,340	4,078	24,518	16,124
Noninterest Expense	17,757	18,228	16,210	14,330	13,094	13,900	13,529	13,600	66,525	54,123
Income before income taxes	6,654	6,105	5,571	4,385	4,762	4,337	4,302	4,348	22,714	17,749
Provision for Income Taxes	1,581	1,625	1,548	1,066	1,276	1,190	1,158	1,358	5,819	4,982
Net income	$ 5,073	$ 4,480	$ 4,023	$ 3,319	$ 3,486	$ 3,147	$ 3,144	$ 2,990	$ 16,895	$ 12,767
Basic earnings per share (in dollars per share)	$ 0.37	$ 0.33	$ 0.30	$ 0.24	$ 0.26	$ 0.27	$ 0.26	$ 0.26	$ 1.23	$ 1.05
Diluted earnings per share (in dollars per share)	$ 0.36	$ 0.32	$ 0.29	$ 0.24	$ 0.25	$ 0.26	$ 0.26	$ 0.25	$ 1.21	$ 1.02