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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2020	May 06, 2020
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
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 Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding		13,821,973

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Assets
Cash and due from banks	$ 9,578	$ 10,530
Interest bearing deposits at other financial institutions	164,313	102,447
Federal funds sold	979	1,847
Total cash and cash equivalents	174,870	114,824
Investment securities available for sale	59,524	60,828
Restricted investments	4,274	3,966
Loans held for sale	73,955	71,030
Loans receivable, net of allowance for loan losses of $15,514 and $13,301 at March 31, 2020 and December 31, 2019, respectively	1,172,285	1,157,820
Premises and equipment, net	5,641	6,092
Accrued interest receivable	5,052	4,770
Deferred income taxes	3,979	4,263
Foreclosed real estate	3,402	2,384
Other assets	4,865	2,518
Total assets	1,507,847	1,428,495
Deposits
Noninterest-bearing, including related party balances of $12,558 and $16,009 at March 31, 2020 and December 31, 2019, respectively	363,423	291,777
Interest-bearing, including related party balances of $119,204 and $125,304 at March 31, 2020 and December 31, 2019, respectively	939,490	933,644
Total deposits	1,302,913	1,225,421
Federal Home Loan Bank advances	28,889	32,222
Other borrowed funds	15,430	15,423
Accrued interest payable	1,678	1,801
Other liabilities	22,857	20,297
Total liabilities	1,371,767	1,295,164
Stockholders' equity
Preferred stock, $.01 par value; 1,000,000 shares authorized; no shares issued or outstanding at March 31, 2020 and December 31, 2019	0	0
Common stock, $.01 par value; 49,000,000 shares authorized; 13,816,723 and 13,894,842 issued and outstanding at March 31, 2020 and December 31, 2019, respectively	138	139
Additional paid-in capital	50,786	51,561
Retained earnings	84,389	81,618
Accumulated other comprehensive income	767	13
Total stockholders' equity	136,080	133,331
Total liabilities and stockholders' equity	$ 1,507,847	$ 1,428,495

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Allowance for loan losses	$ 15,514	$ 13,301
Noninterest-bearing deposits, related party	12,558	16,009
Interest-bearing deposits, related party	$ 119,204	$ 125,304
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)	13,816,723	13,894,842
Common stock, shares outstanding (in shares)	13,816,723	13,894,842

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Interest income
Loans, including fees	$ 21,074	$ 17,844
Investment securities available for sale	340	259
Federal funds sold and other	330	215
Total interest income	21,744	18,318
Interest expense
Deposits, includes payments to related parties of $383 and $519 for the three months ended March 31, 2020 and March 31, 2019, respectively.	3,613	3,243
Borrowed funds	444	331
Total interest expense	4,057	3,574
Net interest income	17,687	14,744
Provision for loan losses	2,409	121
Net interest income after provision for loan losses	15,278	14,623
Noninterest income
Other fees and charges	405	126
Total noninterest income	6,579	4,092
Noninterest expenses
Salaries and employee benefits	8,457	6,787
Occupancy and equipment	1,178	1,094
Professional fees	770	619
Data processing	4,117	3,313
Advertising	636	443
Loan processing	447	305
Other real estate owned expenses, net	45	22
Other operating	2,193	1,747
Total noninterest expenses	17,843	14,330
Income before income taxes	4,014	4,385
Income tax expense	1,080	1,066
Net income	$ 2,934	$ 3,319
Basic earnings per share (in dollars per share)	$ 0.21	$ 0.24
Diluted earnings per share (in dollars per share)	$ 0.21	$ 0.24
Weighted average common shares outstanding:
Basic (in shares)	13,876,428	13,702,433
Diluted (in shares)	14,075,756	13,877,625
Service charges on deposits
Noninterest income
Noninterest income	$ 149	$ 98
Credit card fees
Noninterest income
Noninterest income	2,008	1,492
Mortgage banking revenue
Noninterest income
Noninterest income	$ 4,017	$ 2,376

Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Deposits, related party	$ 383	$ 519

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 2,934	$ 3,319
Other comprehensive income (loss)
Unrealized gain on investment securities available for sale	1,040	370
Unrealized loss on cash flow hedging derivative	0	(5)
Other comprehensive income (loss)	1,040	365
Income tax expense relating to the items above	(286)	(100)
Other comprehensive income	754	265
Comprehensive income	$ 3,688	$ 3,584

- Definition

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

+ References + Details

Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2018		13,672,479
Beginning balance at Dec. 31, 2018	$ 114,564	$ 137	$ 49,321	$ 65,701	$ (595)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	3,319			3,319
Unrealized gain on investment securities available for sale, net of income taxes	270				270
Unrealized loss on cash flow hedging derivative, net of income taxes	(5)				(5)
Stock options exercised (in shares)		21,706
Stock options exercised	107	$ 0	155	(48)
Shares issued as compensation (in shares)		18,380
Shares issued as compensation	150	$ 0	150
Stock-based compensation	199		199
Ending balance (in shares) at Mar. 31, 2019		13,712,565
Ending balance at Mar. 31, 2019	$ 118,550	$ 137	49,825	68,918	(330)
Beginning balance (in shares) at Dec. 31, 2019	13,894,842	13,894,842
Beginning balance at Dec. 31, 2019	$ 133,331	$ 139	51,561	81,618	13
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	2,934			2,934
Unrealized gain on investment securities available for sale, net of income taxes	754				754
Stock options exercised (in shares)		34,015
Stock options exercised	100	$ 0	263	(163)
Stock-based compensation	244		244
Shares repurchased and retired (in shares)		(112,134)
Shares repurchased and retired	$ (1,283)	$ (1)	(1,282)
Ending balance (in shares) at Mar. 31, 2020	13,816,723	13,816,723
Ending balance at Mar. 31, 2020	$ 136,080	$ 138	$ 50,786	$ 84,389	$ 767

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities
Net income	$ 2,934	$ 3,319
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	2,409	121
Provision for losses on mortgage loans sold	106	24
Provision for (recovery of) off balance sheet credit risk	45	(10)
Net amortization on investments	68	31
Depreciation and amortization	522	594
Stock-based compensation expense	244	199
Director and employee compensation paid in stock	0	150
Deferred income tax benefit	(2)	(58)
Amortization of debt issuance expense	7	8
Mortgage banking revenue	(4,017)	(2,376)
Proceeds from sales of loans held for sale	181,513	74,068
Originations of loans held for sale	(180,421)	(74,796)
Changes in assets and liabilities:
Accrued interest receivable	(282)	(61)
Prepaid income taxes and taxes payable	0	4
Other assets	(2,347)	(737)
Accrued interest payable	(123)	405
Other liabilities	2,409	904
Net cash provided by operating activities	3,065	1,789
Cash flows from investing activities
Maturities, calls and principal paydowns of securities available for sale	2,276	1,191
Sales (purchases) of restricted investments	(308)	19
Net increase in loans receivable	(17,892)	(7,799)
Net disposals (purchases) of premises and equipment	(71)	111
Proceeds from sales of foreclosed real estate	0	50
Net cash used by investing activities	(15,995)	(6,428)
Net increase (decrease) in:
Noninterest-bearing deposits	71,646	19,976
Interest-bearing deposits	5,846	(7,494)
Securities sold under agreements to repurchase	0	(322)
Federal funds purchased	0	(2,000)
Federal Home Loan Bank advances, net	(3,333)	(2,000)
Repurchase of common stock	(1,283)	0
Proceeds from exercise of stock options	100	107
Net cash provided by financing activities	72,976	8,267
Net increase in cash and cash equivalents	60,046	3,628
Cash and cash equivalents, beginning of year	114,824	34,723
Cash and cash equivalents, end of period	174,870	38,351
Noncash activities:
Loans transferred to foreclosed real estate	1,018	57
Change in unrealized gains on investments	1,040	370
Change in fair value of cash flow hedging derivative	0	(5)
Establishment of lease right-of-use asset	0	5,158
Establishment of lease liability	0	5,358
Cash paid during the period for:
Taxes	1	1
Interest	$ 4,180	$ 3,169

Nature of Business and Basis of Presentation

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Nature of Business and Basis of Presentation

Capital Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Note 1 - Nature of Business and Basis of Presentation

Nature of operations:

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 (“CBHL”), 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 October 2018, the Company completed its initial public offering (“IPO”), in which 1,834,310 shares of common stock were issued at $12.50 per share, generating net proceeds of $19.8 million.

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 four business segments. 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.

Risks and Uncertainties

The novel coronavirus (“COVID-19”) spread rapidly across the world in the first quarter of 2020 and was declared a pandemic by the World Health Organization. The government and private sector responses to contain its spread began to significantly affect our operations in March and will likely adversely affect our operations in subsequent quarters, although such effects may vary significantly. The duration and extent of the effects over longer terms cannot be reasonably estimated at this time. The risks and uncertainties resulting from the pandemic most likely to affect our future earnings, cash flows and financial condition in future quarters primarily include the nature and duration of the financial effects felt by our customers and the related impact on the customers' ability to fulfill their financial obligations to the Company as well as the potential decline of real estate values resulting from market disruption which may impair the recorded values of collateral-dependent loans. Accordingly, significant estimates used in the preparation of our financial statements may be subject to significant adjustments in future periods. The greater the duration and severity of the pandemic the more likely that estimates will be materially impacted by its effects.

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 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 financial institutions, interest bearing deposits with financial institutions 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 stockholders’ 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 servicing rights 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 and 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 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 (“TDR”) 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 with qualitative factors such as: trends in volume and terms of loans; levels of, and trends in, delinquencies and non-accruals; effects of any changes in lending policies, experience, ability and depth of management; national and local economic trends and conditions (with a specific evaluation of COVID-19 impact); commitments and concentrations of credit; changes in the quality of the Company’s loan review system; and the volume of loans with identified incomplete financial documentation. 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 Company determines the allowance for loan losses based on the accumulation of various components that are calculated independently in accordance with ASC 450 for pools of loans, and ASC 310 for Troubled Debt Restructuring and for individually evaluated loans. The process for determining an appropriate allowance for loan losses is based on a comprehensive and consistently applied analysis of the loan portfolio. The analysis considers all significant factors that affect the collectibility of the portfolio and supports the credit losses estimated by this process. It is important to recognize that the related process, methodology, and underlying assumptions require a substantial degree of judgment. Additional disclosure on the allowance for loan losses, qualitative factors, and the potential COVID-19 impact can be found in the risk factors and Note 4 - loans receivable.

Premises and equipment

Premises and equipment are stated at cost less accumulated depreciation and amortization over two to seven years. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related property. Leasehold improvements are amortized over the estimated useful lives of the improvements, approximately ten years, or the term of the lease, whichever is less. Expenditures for maintenance, repairs, and minor replacements are charged to noninterest expenses as incurred.

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 elected to apply the package of 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 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.

The Company is largely accounting for 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. The Company records unfunded commitments intended for loans held for sale and forward sales agreements 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 endeavors to manage 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 endeavor to 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. Additional information is included in Note 7 - Fair Value.

Income Taxes

Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are recognized when it is deemed more likely than not that the benefits of such deferred income taxes will be realized.

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 March 31, 2020 and 2019, there were 251,251 and 273,600 stock options, respectively, that were not included in the calculation as their effect would have been anti-dilutive.



	For the Three Months Ended March 31,
	2020					2019
(dollars in thousands, except per share information)	Income (Numerator)		Shares (Denominator)	Per Share Amount		Income (Numerator)		Shares (Denominator)	Per Share Amount
Earnings per share - Basic
Net income available to common stockholders	$	2,934	13,876,428	$	0.21	$	3,319	13,702,433	$	0.24
Effect of dilutive securities	—		199,328			—		175,192
Earnings per share - Diluted	$	2,934	14,075,756	$	0.21	$	3,319	13,877,625	$	0.24

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 component of other comprehensive income is unrealized gains and losses on investment securities available for sale, net of income taxes. Information concerning the Company's accumulated other comprehensive income (loss) as of March 31, 2020 and December 31, 2019 is as follows:



(in thousands)	March 31, 2020			December 31, 2019
Unrealized gains on securities available for sale	$	1,057		$	18
Deferred tax expense	(290		)	(5		)
Total accumulated comprehensive income	$	767		$	13

Recently issued accounting pronouncements:

In June 2016, the FASB issued guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. The FASB subsequently revised ASU 2019-10, which delayed 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 credit 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 has been permitted since first quarter 2019, the Company does not expect to early adopt. In addition to the allowance for loan losses, the Company will also record an allowance for credit losses on 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 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.

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.

In March 2020, the FASB issued ASU 2020-04, ‘‘Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting’’. This new ASU provides temporary optional expedients and exceptions to GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. Entities can elect not to apply certain modification accounting requirements to contracts affected by reference rate reform, if certain criteria are met. Entities that make such elections would not have to remeasure contracts at the modification date or reassess a previous accounting determination. Entities can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met. This amended guidance and the ability to elect its temporary optional expedients and exceptions are effective for the Company as of March 12, 2020 through December 31, 2022.

In March 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the agencies”) issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by the Coronavirus. The interagency statement was effective immediately and impacted accounting for loan modifications. Under Accounting Standards Codification 310-40, “Receivables - Troubled Debt Restructurings by Creditors,” (“ASC 310-40”), a restructuring of debt constitutes a troubled debt restructuring (“TDR”) if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The agencies confirmed with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. This includes short-term (e.g., six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. As of March 31, 2020, the Company has offered payment deferrals for commercial and consumer customers for up to six months. The loan modifications offered to specific loan types are as follows:

•

Full payment-balloon or full amortization loans - Once the deferral period has ended, the Company will go back to billing principal and interest. As payments are made, all funds will go towards interest until all accrued interest has been caught up. Once the accrued interest is satisfied, future payments will be broken out for both principal and interest. The amount of principal that had been deferred will be re-amortized when the balloon maturity/payoff date occurs.

•

Full payment ARM loans - Once the deferral period has ended, the Company will go back to billing principal and interest. As payments are made, all funds will go towards interest until all accrued interest has been caught up. Once the accrued interest is satisfied, future payments will be broken out for both principal and interest. The amount of principal that had been deferred will be re-amortized when the ARM repricing occurs.

•

Full Payment Rate Reset Loans - Once the deferral period has ended, the Company will go back to billing principal and interest. As payments are made, all funds will go towards interest until all accrued interest has been caught up. Once the accrued interest is satisfied, future payments will be broken out for both principal and interest. The amount of principal that had been deferred will be re-amortized when the rate reset occurs.


•	Principal deferral only loans (any type) - Once the deferral period has ended, the Company will go back to billing principal and interest. The principal amount that has been deferred will be re-amortized when either the maturity, ARM repricing or rate reset occurs.


•	Consumer loans - Borrowers are required to sign a change in the terms and agreements at the time of deferral, which re-amortizes the loan and extends the maturity date based on the number of months deferred.

This interagency guidance is expected to have a material impact on the Company’s financial statements; however, this impact cannot be quantified at this time.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	3 Months Ended
Cash and Cash Equivalents	Mar. 31, 2020
Cash and Cash Equivalents [Abstract]
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 March 31, 2020 and December 31, 2019, the requirements were satisfied by amounts on deposit with the Federal Reserve Bank and cash on hand.

Investment Securities

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Investment Securities

The amortized cost and estimated fair value of investment securities at March 31, 2020 and December 31, 2019 are summarized as follows:



Investment Securities Available for Sale
(in thousands)
March 31, 2020	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Available for sale
U.S. government-sponsored enterprises	$	1,000	$	2	$	—		$	1,002
Municipal	514		—		(43		)	471
Corporate	2,260		25		(82		)	2,203
Mortgage-backed securities	54,693		1,155		—			55,848
	$	58,467	$	1,182	$	(125	)	$	59,524

December 31, 2019
Available for sale
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

There were no securities sold during the three months ended March 31, 2020 and 2019.

Information related to unrealized losses in the investment portfolio as of March 31, 2020 and December 31, 2019 is summarized as follows:



Investment Securities Unrealized Losses
(in thousands)	Less than 12 months					12 months or longer					Total
March 31, 2020	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Municipal	471		(43		)	—		—			471		(43		)
Corporate	999		(2		)	179		(80		)	1,178		(82		)
	$	1,470	$	(45	)	$	179	$	(80	)	$	1,649	$	(125	)

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	)

At March 31, 2020, there was one corporate security that had been in a loss position for greater than twelve months. At December 31, 2019, there was one U.S. government-sponsored enterprises security, two corporate securities, and four mortgage-backed securities that had been in a loss position for greater than twelve months. Management believes that the unrealized loss at March 31, 2020 has resulted from 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 March 31, 2020 and December 31, 2019 is shown below:



Pledged Securities
	March 31, 2020				December 31, 2019
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Federal Home Loan Bank advances	$	1,435	$	1,481	$	1,508	$	1,522

Contractual maturities of U.S. government-sponsored enterprises, municipals and corporate securities at March 31, 2020 and December 31, 2019 are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.



Contractual Maturities
	March 31, 2020				December 31, 2019
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	1,000	$	1,002	$	1,542	$	1,518
Over one to five years	—		—		—		—
Over five to ten years	2,000		2,023		2,000		2,046
Over ten years	774		651		515		528
Mortgage-backed securities⁽¹⁾	54,693		55,848		56,754		56,736
	$	58,467	$	59,524	$	60,811	$	60,828

_______________


⁽¹⁾	Mortgage-backed securities contractually repay in monthly installments.

Loans Receivable

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Loans Receivable

Major classifications of loans as are as follows:



Loan Categories
(in thousands)	March 31, 2020			December 31, 2019
Real estate
Residential	$	430,870		$	427,926
Commercial	360,601			348,091
Construction	204,047			198,702
Commercial	151,551			151,109
Credit card	41,881			46,412
Other consumer	1,103			1,285
	1,190,053			1,173,525
Deferred origination fees, net	(2,254		)	(2,404		)
Allowance for loan losses	(15,514		)	(13,301		)
Loans receivable, net	$	1,172,285		$	1,157,820

The Company makes loans to customers located primarily in the Washington, D.C. and Baltimore metropolitan areas. Although the loan portfolio is diversified, its performance is 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 secured by 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 Loans 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 115%. Residential real estate loans have represented a stable and growing portion of our 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 March 31, 2020, there were approximately $163.8 million of owner-occupied commercial real estate loans, representing approximately 45.4% 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 somewhat diverse in terms and type. This diversity may help 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 frequently transitions the end purchaser to permanent financing or re-underwriting and sale into the secondary market through Capital Bank Home Loans. 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 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. Personal guaranties from the borrower or other principal are generally obtained.

Credit Cards. Our OpenSky® credit card division provides credit cards on a nationwide basis to under-banked populations and those looking to rebuild their credit scores 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 $39.6 million and $43.3 million of the credit card balances were secured by savings deposits held by the Company as of March 31, 2020 and December 31, 2019, respectively.

Other Consumer Loans. To a 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 was $285 thousand as of March 31, 2020 and December 31, 2019. Loans with nonaccretable discounts had a carrying value of $855 thousand and $864 thousand as of March 31, 2020 and December 31, 2019.

Accretable discounts on loans acquired is summarized as follows:



Accretable Discounts on Loans Acquired
(in thousands)
	For the Three Months Ended March 31, 2020			For the Year Ended December 31, 2019
Accretable discount at beginning of period	$	429		$	438
Accretion and payoff of loans	(196		)	(9		)
Accretable discount at end of period	$	233		$	429

The following tables set forth the changes in the allowance for loan losses and an allocation of the allowance for loan losses by class for the three months ended March 31, 2020 and March 31, 2019.



Allowance for Loan Losses
(in thousands)	Beginning Balance		Provision for Loan Losses		Charge-Offs					Ending Balance
Three Months Ended March 31, 2020	Beginning Balance		Provision for Loan Losses		Charge-Offs			Recoveries		Ending Balance
Real estate
Residential	$	4,135	$	836	$	—		$	—	$	4,971
Commercial	3,572		851		—			—		4,423
Construction	2,668		364		—			—		3,032
Commercial	1,548		140		(25		)	—		1,663
Credit card	1,368		217		(179		)	8		1,414
Other consumer	10		1		—			—		11
	$	13,301	$	2,409	$	(204	)	$	8	$	15,514



Allowance for Loan Losses
(in thousands)	Beginning Balance		Provision for Loan Losses			Charge-Offs					Ending Balance
Three Months Ended March 31, 2019	Beginning Balance		Provision for Loan Losses			Charge-Offs			Recoveries		Ending Balance
Real estate
Residential	$	3,541	$	334		$	—		$	—	$	3,875
Commercial	3,003		(157		)	—			2		2,848
Construction	2,093		(64		)	—			—		2,029
Commercial	1,578		(151		)	—			—		1,427
Credit card	1,084		159			(93		)	9		1,159
Other consumer	9		—			—			—		9
	$	11,308	$	121		$	(93	)	$	11	$	11,347

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



Allowance for Loan Loss Composition
(in thousands)	Allowance for Loan Losses Ending Balance Evaluated for Impairment:				Outstanding Loan Balances Evaluated for Impairment:
March 31, 2020	Individually		Collectively		Individually		Collectively
Real estate
Residential	$	—	$	4,971	$	1,633	$	429,237
Commercial	—		4,423		1,408		359,193
Construction	—		3,032		1,503		202,544
Commercial	89		1,574		440		151,111
Credit card	—		1,414		—		41,881
Other consumer	—		11		—		1,103
	$	89	$	15,425	$	4,984	$	1,185,069

December 31, 2019
Real estate
Residential	$	—	$	4,135	$	2,192	$	425,734
Commercial	—		3,572		1,433		346,658
Construction	—		2,668		—		198,702
Commercial	119		1,429		474		150,635
Credit card	—		1,368		—		46,412
Other consumer	—		10		—		1,285
	$	119	$	13,182	$	4,099	$	1,169,426

Past due loans, segregated by age and class of loans, as of March 31, 2020 and December 31, 2019 were as follows:



Loans Past Due											Accruing Loans 90 or More Days Past Due
	Loans 30-89 Days Past Due		Loans 90 or More Days Past Due		Total Past Due Loans		Current Loans		Total Loans				Non-accrual Loans
(in thousands)
March 31, 2020
Real estate
Residential	$	8,986	$	1,653	$	10,639	$	420,231	$	430,870	$	229	$	1,633
Commercial	4,616		1,678		6,294		354,307		360,601		270		1,408
Construction	2,103		353		2,456		201,591		204,047		297		1,503
Commercial	3,014		323		3,337		148,214		151,551		—		440
Credit card	3,834		7		3,841		38,040		41,881		7		—
Other consumer	—		—		—		1,103		1,103		—		—
	$	22,553	$	4,014	$	26,567	$	1,163,486	$	1,190,053	$	803	$	4,984

Acquired loans included in total above	$	22	$	1,263	$	1,285	$	4,599	$	5,884	$	498	$	818

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 in total above	$	305	$	1,243	$	1,548	$	4,873	$	6,421	$	464	$	880

As of March 31, 2020 and December 31, 2019, there was a $159 thousand loan secured by a one to four family residential property in the process of foreclosure.

Impaired loans were as follows:



Impaired Loans
	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
(in thousands)
March 31, 2020
Real estate
Residential	$	1,838	$	1,633	$	—	$	1,633	$	—
Commercial	1,551		1,408		—		1,408		—
Construction	1,528		1,503		—		1,503		—
Commercial	559		201		239		440		89
	$	5,476	$	4,745	$	239	$	4,984	$	89

Acquired loans included above	$	987	$	818	$	—	$	818	$	—

December 31, 2019
Real estate
Residential	$	2,309	$	2,192	$	—	$	2,192	$	—
Commercial	1,477		1,433		—		1,433		—
Commercial	574		201		273		474		119
	$	4,360	$	3,826	$	273	$	4,099	$	119

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

The following table summarizes interest recognized on impaired loans:



Interest Recognized on Impaired Loans
	For the Three Months Ended March 31, 2020				For the Three Months Ended March 31, 2019
(in thousands)	Average Recorded Investment		Interest Recognized		Average Recorded Investment		Interest Recognized
Real estate
Residential	$	1,840	$	—	$	2,399	$	—
Commercial	1,575		3		1,572		—
Construction	1,528		9		2,132		—
Commercial	661		—		1,513		—
	$	5,604	$	12	$	7,616	$	—

Impaired loans include loans acquired on which management has recorded a nonaccretable discount.

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.

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. Classified loans include Special Mention, Substandard, and Doubtful loans:



Loan Classifications
(in thousands)	Pass⁽¹⁾		Special Mention		Substandard		Doubtful		Total
March 31, 2020
Real estate:
Residential	$	424,908	$	4,257	$	1,705	$	—	$	430,870
Commercial	352,880		6,313		1,408		—		360,601
Construction	200,885		1,594		1,568		—		204,047
Commercial	145,701		4,508		1,342		—		151,551
Credit card	41,881		—		—		—		41,881
Other consumer	1,103		—		—		—		1,103
Total	$	1,167,358	$	16,672	$	6,023	$	—	$	1,190,053

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

________________________

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

Impaired loans also include certain loans that have been modified in troubled debt restructurings 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
(in thousands)	Number of Contracts	Recorded Investment
March 31, 2020	Number of Contracts	Performing		Nonperforming		Total
Real estate
Residential	3	$	—	$	145	$	145
Commercial	2	—		309		309
	5	$	—	$	454	$	454

Acquired loans included in total above	3	$	—	$	145	$	145

December 31, 2019
Real estate
Residential	3	$	—	$	145	$	145
Commercial	2	—		314		314
	5	$	—	$	459	$	459

Acquired loans included in total above	3	$	—	$	145	$	145

There were no new troubled debt restructurings in the three months ended March 31, 2020. The Company had no defaulted TDR loans over the last twelve months.

Outstanding loan commitments were as follows:



Loan Commitments
(in thousands)	March 31, 2020		December 31, 2019
Unused lines of credit
Real Estate
Residential	$	14,903	$	13,754
Residential - Home Equity	28,242		26,407
Commercial	15,846		31,411
Construction	111,629		114,999
Commercial	42,787		36,442
Secured credit card	48,435		37,517
Personal	482		43
Total unused lines of credit	$	262,324	$	260,573

Commitments to originate residential loans held for sale	$	8,900	$	2,646

Letters of credit	$	5,260	$	5,305

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.

The Company's maximum exposure to credit loss in the event of nonperformance by the customer is the contractual amount of the credit commitment. Loan commitments and lines of credit are generally made on the same terms, including collateral, as outstanding loans. Management is not aware of any accounting loss to be incurred by funding these loan commitments. The Company maintains an estimated reserve for off balance sheet items such as unfunded lines of credit, which is reflected in other liabilities, with changes being charged to or released from operating expense. Activity for this account is as follows for the periods presented:



Off Balance Sheet Reserve
(in thousands)	For the Three Months Ended
	March 31, 2020		March 31, 2019
Balance at beginning of period	$	1,226	$	1,053
Provision for off balance sheet credit commitments	45		(10		)
Balance at end of period	$	1,271	$	1,043

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 have the right to make a claim for losses due to document deficiencies, program compliance, early payment default, and fraud or borrower misrepresentations.

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



Mortgage Loan Put-back Reserve
(in thousands)	For the Three Months Ended
	March 31, 2020			March 31, 2019
Balance at beginning of period	$	575		$	501
Provision for mortgage loan put backs	106			24
Charge-offs	(14		)	(10		)
Balance at end of period	$	667		$	515

Derivative Financial Instruments

3 Months Ended

Mar. 31, 2020

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 estimating 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.

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



Derivatives
(in thousands)	March 31, 2020			December 31, 2019
Notional amount of open forward sales agreements	$	107,482		$	61,000
Fair value of open forward delivery sales agreements.	(2,072		)	(125		)
Notional amount of open mandatory delivery commitments	29,496			22,888
Fair value of open mandatory delivery commitments	(21		)	115
Notional amount of interest rate lock commitments	112,995			32,365
Fair value of interest rate lock commitments	(398		)	122

Leases

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

The Company’s primary leasing activities relate to certain real estate leases entered into in support of the Company’s branch operations and back office operations. 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 2.32% at March 31, 2020 and 2.24% at December 31, 2019. The operating lease ROU asset also includes any lease pre-payments. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which the Company has elected to account for separately as the non-lease component amounts are readily determinable under most leases.

As of March 31, 2020, the Company’s lease ROU assets and related lease liabilities were $3.7 million and $4.0 million, respectively, compared to December 31, 2019 balances of $3.9 million of ROU assets and $4.3 million of lease liabilities,and have remaining terms ranging from 1 - 6 years, including extension options that the Company is reasonably certain will be exercised. As of March 31, 2020, 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)	March 31, 2020			December 31, 2019
Lease Right of Use Asset:
Lease asset	$	5,187		$	5,158
Less: Accumulated amortization	(1,514		)	(1,238		)
Net lease asset	$	3,673		3,920

Lease Liability:
Lease liability	$	4,036		$	4,291

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



Lease Payment Obligations
(in thousands)	March 31, 2020
Amounts due in:
2020	$	969
2021	1,315
2022	926
2023	744
2024	420
Total future lease payments	4,374
Discount of cash flows	(338		)
Present value of net future lease payments	$	4,036

Fair Value

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value

y 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 Company has categorized its financial instruments measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019 as follows:



Fair Value of Financial Instruments
(in thousands)
March 31, 2020	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Investment securities available for sale
U.S. government-sponsored enterprises	$	1,002	$	—	$	1,002	$	—
Municipal	471		—		471		—
Corporate	2,203		—		2,203		—
Mortgage-backed securities	55,848		—		55,848		—
	$	59,524	$	—	$	59,524	$	—
Loans held for sale	$	73,955	$	—	$	73,955	$	—
Derivative liabilities	$	2,491	$	—	$	2,491	$	—

December 31, 2019
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	$	—

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)	March 31, 2020		December 31, 2019
Aggregate fair value	$	73,955	$	71,030
Contractual principal	69,441		67,118
Difference	$	4,514	$	3,912

The Company has elected to account for loans held for sale at fair value to eliminate the mismatch that would occur by recording changes in market value on derivative instruments used to hedge loans held for sale while carrying the loans at the lower of cost or market.

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 March 31, 2020 and December 31, 2019, the fair values consist of loan balances of $5.0 million and $4.1 million, with specific reserves of $89 thousand and $119 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.

The Company has categorized its impaired loans and foreclosed real estate as follows:



Fair Value of Impaired Loans and Foreclosed Real Estate
(in thousands)	March 31, 2020		December 31, 2019
Impaired loans
Level 1 inputs	$	—	$	—
Level 2 inputs	—		—
Level 3 inputs	4,895		3,980
Total	$	4,895	$	3,980

Foreclosed real estate
Level 1 inputs	$	—	$	—
Level 2 inputs	—		—
Level 3 inputs	3,402		2,384
Total	$	3,402	$	2,384

The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at March 31, 2020 and December 31, 2019:



Unobservable Inputs
	Valuation Technique	Unobservable Inputs	Range of Inputs
	Valuation Technique	Unobservable Inputs	Range of Inputs
Impaired Loans	Appraised Value/Discounted Cash Flows	Discounts to appraisals or cash flows for estimated holding and/or selling costs	11 to 25%
Foreclosed Real Estate	Appraised Value/Comparable Sales	Discounts to appraisals for estimated holding and/or selling costs	11 to 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 the contractual right or obligation to either receive or deliver cash for another financial instrument.

The information used to determine fair value is highly subjective 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.

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

The fair value of 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.

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



Fair Value of Selected Financial Instruments
	March 31, 2020				December 31, 2019
(in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Level 1
Cash and due from banks	$	9,578	$	9,578	$	10,530	$	10,530
Interest bearing deposits at other financial institutions	164,313		164,313		102,447		102,447
Federal funds sold	979		979		1,847		1,847
Level 3
Loans receivable, net	$	1,172,285	$	1,179,026	$	1,157,820	$	1,155,922
Restricted investments	4,274		4,274		3,966		3,966

Financial liabilities
Level 1
Noninterest bearing deposits	$	363,423	$	363,423	$	291,777	$	291,777
Level 3
Interest bearing deposits	$	939,490	$	942,888	$	933,644	$	934,349
FHLB advances and other borrowed funds	44,319		44,349		47,645		47,678

- 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

3 Months Ended

Mar. 31, 2020

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), OpenSky^® (the Company’s credit card division) and the Corporate Office. The following schedule presents financial information for each reportable segment at March 31, 2020.



Segments
(in thousands)
For the Three Months Ended March 31, 2020
	Commercial Bank			CBHL		OpenSky^®		Corporate		Eliminations			Consolidated
Interest income	$	16,107		$	366	$	4,706	$	3,461	$	(2,896	)	$	21,744
Interest expense	3,587			209		—		278		(17		)	4,057
Net interest income	12,520			157		4,706		3,183		(2,879		)	17,687
Provision for loan losses	2,192			—		217		—		—			2,409
Net interest income after provision	10,328			157		4,489		3,183		(2,879		)	15,278
Noninterest income	225			4,345		2,008		1		—			6,579
Noninterest expense	8,704			3,448		5,582		109		—			17,843
Net income before taxes	$	1,849		$	1,054	$	915	$	3,075	$	(2,879	)	$	4,014

Total assets	$	1,354,546		$	75,261	$	44,889	$	158,072	$	(124,921	)	$	1,507,847

For the Three Months Ended March 31, 2019
Interest income	$	13,911		$	351	$	3,590	$	3,808	$	(3,342	)	$	18,318
Interest expense	3,243			70		—		261		—			3,574
Net interest income	10,668			281		3,590		3,547		(3,342		)	14,744
Provision for (recovery of) loan losses	(88		)	—		159		50		—			121
Net interest income after provision	10,756			281		3,431		3,497		(3,342		)	14,623
Noninterest income	144			2,404		1,543		1		—			4,092
Noninterest expense	7,414			2,484		4,362		70		—			14,330
Net income before taxes	$	3,486		$	201	$	612	$	3,428	$	(3,342	)	$	4,385

Total assets	$	1,031,062		$	22,572	$	34,605	$	137,842	$	(102,329	)	$	1,123,752

Litigation	3 Months Ended
Litigation	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Litigation	Litigation The Company is involved in legal proceedings occurring in the ordinary course of business. The aggregate effect of these, in management’s opinion, will not materially affect the results of operations or financial condition of the Company.

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	t 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. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), enacted March 27, 2020 in response to the COVID-19 pandemic, includes provisions designed to provide relief to individuals and businesses. This legislation created the $349 billion Paycheck Protection Program ("PPP"). The principal and interest of PPP loans is guaranteed by the Small Business Administration ("SBA"). PPP covered loans also afford borrowers forgiveness of the principal and interest of the covered loan if the proceeds are used primarily to retain workers and pay other qualified business expenses. As an SBA lender, the Bank is actively participating in the PPP and are working hard to meet the needs of our customers and community, processing as many eligible applications as soon as possible. Section 4013 of the CARES Act addressed COVID-19 related modifications and specified that such modifications made on loans that were current as of December 31, 2019 are not TDRs. In accordance with interagency guidance issued in April 2020, these short-term modifications made to a borrower affected by the COVID-19 pandemic and governmental shutdown orders, such as payment deferrals, fee waivers and extensions of repayment terms, do not need to be identified as TDRs if the loans were current at the time a modification plan was implemented. None of the modified loans met or are expected to meet the criteria of a TDR under the CARES Act or the related interagency statement. Through April 30, 2020, the Bank processed over 1,110 PPP loan applications for approximately $246.0 million in the first and second round of the program. Through April 30, 2020, we granted payment deferrals for commercial and consumer loans with aggregate balances of $107.3 million. Additionally, we have offered assistance to our OpenSky^® cardholders, including late fee waivers and minimum payment deferrals, in an effort for them to avoid delinquency and negative credit bureau reporting. In the OpenSky^® Secured Credit Card business, we launched a relief program in March 2020 for affected customers requesting assistance. The program provides for payment deferral and relief without impacting our customers' credit history. As of April 30, 2020, 2,139 customers or 0.71% of total customers, representing $716 thousand in balances outstanding, had taken advantage of the program.

Nature of Business and Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Nature of operations

Nature of operations:

Basis of presentation

Basis of presentation:

Risks and Uncertainties

Cash and cash equivalents

Investment securities

Loans held for sale

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

Premises and equipment

Leases

The Company is largely accounting for existing operating leases consistent with prior guidance except for the incremental balance sheet recognition for leases.

Derivative Financial Instruments

Fair Value Measurements

Income Taxes

Earnings per share

Earnings per share:

Comprehensive income

Comprehensive income:

The Company's only component of other comprehensive income is unrealized gains and losses on investment securities available for sale, net of income taxes.

Recently issued accounting pronouncements

Recently issued accounting pronouncements:

•


•	Principal deferral only loans (any type) - Once the deferral period has ended, the Company will go back to billing principal and interest. The principal amount that has been deferred will be re-amortized when either the maturity, ARM repricing or rate reset occurs.


•	Consumer loans - Borrowers are required to sign a change in the terms and agreements at the time of deferral, which re-amortizes the loan and extends the maturity date based on the number of months deferred.

Reclassifications

Reclassifications:

Nature of Business and Basis of Presentation (Tables)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Schedule of Earnings Per Share, Basic and Diluted



	For the Three Months Ended March 31,
	2020					2019
(dollars in thousands, except per share information)	Income (Numerator)		Shares (Denominator)	Per Share Amount		Income (Numerator)		Shares (Denominator)	Per Share Amount
Earnings per share - Basic
Net income available to common stockholders	$	2,934	13,876,428	$	0.21	$	3,319	13,702,433	$	0.24
Effect of dilutive securities	—		199,328			—		175,192
Earnings per share - Diluted	$	2,934	14,075,756	$	0.21	$	3,319	13,877,625	$	0.24

Schedule of Accumulated Other Comprehensive Income (Loss)

Information concerning the Company's accumulated other comprehensive income (loss) as of March 31, 2020 and December 31, 2019 is as follows:



(in thousands)	March 31, 2020			December 31, 2019
Unrealized gains on securities available for sale	$	1,057		$	18
Deferred tax expense	(290		)	(5		)
Total accumulated comprehensive income	$	767		$	13

Investment Securities (Tables)

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Unrealized Gain (Loss) on Investments

The amortized cost and estimated fair value of investment securities at March 31, 2020 and December 31, 2019 are summarized as follows:



Investment Securities Available for Sale
(in thousands)
March 31, 2020	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Available for sale
U.S. government-sponsored enterprises	$	1,000	$	2	$	—		$	1,002
Municipal	514		—		(43		)	471
Corporate	2,260		25		(82		)	2,203
Mortgage-backed securities	54,693		1,155		—			55,848
	$	58,467	$	1,182	$	(125	)	$	59,524

December 31, 2019
Available for sale
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

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

Information related to unrealized losses in the investment portfolio as of March 31, 2020 and December 31, 2019 is summarized as follows:



Investment Securities Unrealized Losses
(in thousands)	Less than 12 months					12 months or longer					Total
March 31, 2020	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Municipal	471		(43		)	—		—			471		(43		)
Corporate	999		(2		)	179		(80		)	1,178		(82		)
	$	1,470	$	(45	)	$	179	$	(80	)	$	1,649	$	(125	)

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	)

Schedule of Pledged Securities

A summary of pledged securities at March 31, 2020 and December 31, 2019 is shown below:



Pledged Securities
	March 31, 2020				December 31, 2019
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Federal Home Loan Bank advances	$	1,435	$	1,481	$	1,508	$	1,522

Investments Classified by Contractual Maturity Date



Contractual Maturities
	March 31, 2020				December 31, 2019
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	1,000	$	1,002	$	1,542	$	1,518
Over one to five years	—		—		—		—
Over five to ten years	2,000		2,023		2,000		2,046
Over ten years	774		651		515		528
Mortgage-backed securities⁽¹⁾	54,693		55,848		56,754		56,736
	$	58,467	$	59,524	$	60,811	$	60,828

_______________


⁽¹⁾	Mortgage-backed securities contractually repay in monthly installments.

Loans Receivable (Tables)

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Schedule of Loans Receivable

Major classifications of loans as are as follows:



Loan Categories
(in thousands)	March 31, 2020			December 31, 2019
Real estate
Residential	$	430,870		$	427,926
Commercial	360,601			348,091
Construction	204,047			198,702
Commercial	151,551			151,109
Credit card	41,881			46,412
Other consumer	1,103			1,285
	1,190,053			1,173,525
Deferred origination fees, net	(2,254		)	(2,404		)
Allowance for loan losses	(15,514		)	(13,301		)
Loans receivable, net	$	1,172,285		$	1,157,820

Schedule Of Activity In Accretable Discounts On Loans Acquired

Accretable discounts on loans acquired is summarized as follows:



Accretable Discounts on Loans Acquired
(in thousands)
	For the Three Months Ended March 31, 2020			For the Year Ended December 31, 2019
Accretable discount at beginning of period	$	429		$	438
Accretion and payoff of loans	(196		)	(9		)
Accretable discount at end of period	$	233		$	429

Allowance for Credit Losses on Loans Receivables

The following tables set forth the changes in the allowance for loan losses and an allocation of the allowance for loan losses by class for the three months ended March 31, 2020 and March 31, 2019.



Allowance for Loan Losses
(in thousands)	Beginning Balance		Provision for Loan Losses		Charge-Offs					Ending Balance
Three Months Ended March 31, 2020	Beginning Balance		Provision for Loan Losses		Charge-Offs			Recoveries		Ending Balance
Real estate
Residential	$	4,135	$	836	$	—		$	—	$	4,971
Commercial	3,572		851		—			—		4,423
Construction	2,668		364		—			—		3,032
Commercial	1,548		140		(25		)	—		1,663
Credit card	1,368		217		(179		)	8		1,414
Other consumer	10		1		—			—		11
	$	13,301	$	2,409	$	(204	)	$	8	$	15,514



Allowance for Loan Losses
(in thousands)	Beginning Balance		Provision for Loan Losses			Charge-Offs					Ending Balance
Three Months Ended March 31, 2019	Beginning Balance		Provision for Loan Losses			Charge-Offs			Recoveries		Ending Balance
Real estate
Residential	$	3,541	$	334		$	—		$	—	$	3,875
Commercial	3,003		(157		)	—			2		2,848
Construction	2,093		(64		)	—			—		2,029
Commercial	1,578		(151		)	—			—		1,427
Credit card	1,084		159			(93		)	9		1,159
Other consumer	9		—			—			—		9
	$	11,308	$	121		$	(93	)	$	11	$	11,347



Allowance for Loan Loss Composition
(in thousands)	Allowance for Loan Losses Ending Balance Evaluated for Impairment:				Outstanding Loan Balances Evaluated for Impairment:
March 31, 2020	Individually		Collectively		Individually		Collectively
Real estate
Residential	$	—	$	4,971	$	1,633	$	429,237
Commercial	—		4,423		1,408		359,193
Construction	—		3,032		1,503		202,544
Commercial	89		1,574		440		151,111
Credit card	—		1,414		—		41,881
Other consumer	—		11		—		1,103
	$	89	$	15,425	$	4,984	$	1,185,069

December 31, 2019
Real estate
Residential	$	—	$	4,135	$	2,192	$	425,734
Commercial	—		3,572		1,433		346,658
Construction	—		2,668		—		198,702
Commercial	119		1,429		474		150,635
Credit card	—		1,368		—		46,412
Other consumer	—		10		—		1,285
	$	119	$	13,182	$	4,099	$	1,169,426

Past Due Loans Receivables

Past due loans, segregated by age and class of loans, as of March 31, 2020 and December 31, 2019 were as follows:



Loans Past Due											Accruing Loans 90 or More Days Past Due
	Loans 30-89 Days Past Due		Loans 90 or More Days Past Due		Total Past Due Loans		Current Loans		Total Loans				Non-accrual Loans
(in thousands)
March 31, 2020
Real estate
Residential	$	8,986	$	1,653	$	10,639	$	420,231	$	430,870	$	229	$	1,633
Commercial	4,616		1,678		6,294		354,307		360,601		270		1,408
Construction	2,103		353		2,456		201,591		204,047		297		1,503
Commercial	3,014		323		3,337		148,214		151,551		—		440
Credit card	3,834		7		3,841		38,040		41,881		7		—
Other consumer	—		—		—		1,103		1,103		—		—
	$	22,553	$	4,014	$	26,567	$	1,163,486	$	1,190,053	$	803	$	4,984

Acquired loans included in total above	$	22	$	1,263	$	1,285	$	4,599	$	5,884	$	498	$	818

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 in total above	$	305	$	1,243	$	1,548	$	4,873	$	6,421	$	464	$	880

Impaired Loans Receivables

Impaired loans were as follows:



Impaired Loans
	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
(in thousands)
March 31, 2020
Real estate
Residential	$	1,838	$	1,633	$	—	$	1,633	$	—
Commercial	1,551		1,408		—		1,408		—
Construction	1,528		1,503		—		1,503		—
Commercial	559		201		239		440		89
	$	5,476	$	4,745	$	239	$	4,984	$	89

Acquired loans included above	$	987	$	818	$	—	$	818	$	—

December 31, 2019
Real estate
Residential	$	2,309	$	2,192	$	—	$	2,192	$	—
Commercial	1,477		1,433		—		1,433		—
Commercial	574		201		273		474		119
	$	4,360	$	3,826	$	273	$	4,099	$	119

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

The following table summarizes interest recognized on impaired loans:



Interest Recognized on Impaired Loans
	For the Three Months Ended March 31, 2020				For the Three Months Ended March 31, 2019
(in thousands)	Average Recorded Investment		Interest Recognized		Average Recorded Investment		Interest Recognized
Real estate
Residential	$	1,840	$	—	$	2,399	$	—
Commercial	1,575		3		1,572		—
Construction	1,528		9		2,132		—
Commercial	661		—		1,513		—
	$	5,604	$	12	$	7,616	$	—

Loans Receivables Credit Quality Indicators

The following table presents the balances of classified loans based on the risk grade. Classified loans include Special Mention, Substandard, and Doubtful loans:



Loan Classifications
(in thousands)	Pass⁽¹⁾		Special Mention		Substandard		Doubtful		Total
March 31, 2020
Real estate:
Residential	$	424,908	$	4,257	$	1,705	$	—	$	430,870
Commercial	352,880		6,313		1,408		—		360,601
Construction	200,885		1,594		1,568		—		204,047
Commercial	145,701		4,508		1,342		—		151,551
Credit card	41,881		—		—		—		41,881
Other consumer	1,103		—		—		—		1,103
Total	$	1,167,358	$	16,672	$	6,023	$	—	$	1,190,053

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

________________________

⁽¹⁾Category 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
(in thousands)	Number of Contracts	Recorded Investment
March 31, 2020	Number of Contracts	Performing		Nonperforming		Total
Real estate
Residential	3	$	—	$	145	$	145
Commercial	2	—		309		309
	5	$	—	$	454	$	454

Acquired loans included in total above	3	$	—	$	145	$	145

December 31, 2019
Real estate
Residential	3	$	—	$	145	$	145
Commercial	2	—		314		314
	5	$	—	$	459	$	459

Acquired loans included in total above	3	$	—	$	145	$	145

Schedule Of Outstanding Loan Commitments

Outstanding loan commitments were as follows:



Loan Commitments
(in thousands)	March 31, 2020		December 31, 2019
Unused lines of credit
Real Estate
Residential	$	14,903	$	13,754
Residential - Home Equity	28,242		26,407
Commercial	15,846		31,411
Construction	111,629		114,999
Commercial	42,787		36,442
Secured credit card	48,435		37,517
Personal	482		43
Total unused lines of credit	$	262,324	$	260,573

Commitments to originate residential loans held for sale	$	8,900	$	2,646

Letters of credit	$	5,260	$	5,305

Schedule of Credit Losses for Financing Receivables



Off Balance Sheet Reserve
(in thousands)	For the Three Months Ended
	March 31, 2020		March 31, 2019
Balance at beginning of period	$	1,226	$	1,053
Provision for off balance sheet credit commitments	45		(10		)
Balance at end of period	$	1,271	$	1,043



Mortgage Loan Put-back Reserve
(in thousands)	For the Three Months Ended
	March 31, 2020			March 31, 2019
Balance at beginning of period	$	575		$	501
Provision for mortgage loan put backs	106			24
Charge-offs	(14		)	(10		)
Balance at end of period	$	667		$	515

Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2020

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)	March 31, 2020			December 31, 2019
Notional amount of open forward sales agreements	$	107,482		$	61,000
Fair value of open forward delivery sales agreements.	(2,072		)	(125		)
Notional amount of open mandatory delivery commitments	29,496			22,888
Fair value of open mandatory delivery commitments	(21		)	115
Notional amount of interest rate lock commitments	112,995			32,365
Fair value of interest rate lock commitments	(398		)	122

- 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

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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Leases (Tables)

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Assets And Liabilities, Lessee

The Company’s lease information is summarized as follows:



Leases
(in thousands)	March 31, 2020			December 31, 2019
Lease Right of Use Asset:
Lease asset	$	5,187		$	5,158
Less: Accumulated amortization	(1,514		)	(1,238		)
Net lease asset	$	3,673		3,920

Lease Liability:
Lease liability	$	4,036		$	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)	March 31, 2020
Amounts due in:
2020	$	969
2021	1,315
2022	926
2023	744
2024	420
Total future lease payments	4,374
Discount of cash flows	(338		)
Present value of net future lease payments	$	4,036

Fair Value (Tables)

3 Months Ended

Mar. 31, 2020

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 March 31, 2020 and December 31, 2019 as follows:



Fair Value of Financial Instruments
(in thousands)
March 31, 2020	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Investment securities available for sale
U.S. government-sponsored enterprises	$	1,002	$	—	$	1,002	$	—
Municipal	471		—		471		—
Corporate	2,203		—		2,203		—
Mortgage-backed securities	55,848		—		55,848		—
	$	59,524	$	—	$	59,524	$	—
Loans held for sale	$	73,955	$	—	$	73,955	$	—
Derivative liabilities	$	2,491	$	—	$	2,491	$	—

December 31, 2019
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	$	—

Schedule of Fair Value of Loans Held For Sale



Fair Value of Loans Held for Sale
(in thousands)	March 31, 2020		December 31, 2019
Aggregate fair value	$	73,955	$	71,030
Contractual principal	69,441		67,118
Difference	$	4,514	$	3,912

Fair Value Measurements, Nonrecurring

The Company has categorized its impaired loans and foreclosed real estate as follows:



Fair Value of Impaired Loans and Foreclosed Real Estate
(in thousands)	March 31, 2020		December 31, 2019
Impaired loans
Level 1 inputs	$	—	$	—
Level 2 inputs	—		—
Level 3 inputs	4,895		3,980
Total	$	4,895	$	3,980

Foreclosed real estate
Level 1 inputs	$	—	$	—
Level 2 inputs	—		—
Level 3 inputs	3,402		2,384
Total	$	3,402	$	2,384

Fair Value Measurement Inputs and Valuation Techniques

The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at March 31, 2020 and December 31, 2019:



Unobservable Inputs
	Valuation Technique	Unobservable Inputs	Range of Inputs
	Valuation Technique	Unobservable Inputs	Range of Inputs
Impaired Loans	Appraised Value/Discounted Cash Flows	Discounts to appraisals or cash flows for estimated holding and/or selling costs	11 to 25%
Foreclosed Real Estate	Appraised Value/Comparable Sales	Discounts to appraisals for estimated holding and/or selling costs	11 to 25%

Fair Value Measurements, Recurring and Nonrecurring

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



Fair Value of Selected Financial Instruments
	March 31, 2020				December 31, 2019
(in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Level 1
Cash and due from banks	$	9,578	$	9,578	$	10,530	$	10,530
Interest bearing deposits at other financial institutions	164,313		164,313		102,447		102,447
Federal funds sold	979		979		1,847		1,847
Level 3
Loans receivable, net	$	1,172,285	$	1,179,026	$	1,157,820	$	1,155,922
Restricted investments	4,274		4,274		3,966		3,966

Financial liabilities
Level 1
Noninterest bearing deposits	$	363,423	$	363,423	$	291,777	$	291,777
Level 3
Interest bearing deposits	$	939,490	$	942,888	$	933,644	$	934,349
FHLB advances and other borrowed funds	44,319		44,349		47,645		47,678

Segments (Tables)

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following schedule presents financial information for each reportable segment at March 31, 2020.



Segments
(in thousands)
For the Three Months Ended March 31, 2020
	Commercial Bank			CBHL		OpenSky^®		Corporate		Eliminations			Consolidated
Interest income	$	16,107		$	366	$	4,706	$	3,461	$	(2,896	)	$	21,744
Interest expense	3,587			209		—		278		(17		)	4,057
Net interest income	12,520			157		4,706		3,183		(2,879		)	17,687
Provision for loan losses	2,192			—		217		—		—			2,409
Net interest income after provision	10,328			157		4,489		3,183		(2,879		)	15,278
Noninterest income	225			4,345		2,008		1		—			6,579
Noninterest expense	8,704			3,448		5,582		109		—			17,843
Net income before taxes	$	1,849		$	1,054	$	915	$	3,075	$	(2,879	)	$	4,014

Total assets	$	1,354,546		$	75,261	$	44,889	$	158,072	$	(124,921	)	$	1,507,847

For the Three Months Ended March 31, 2019
Interest income	$	13,911		$	351	$	3,590	$	3,808	$	(3,342	)	$	18,318
Interest expense	3,243			70		—		261		—			3,574
Net interest income	10,668			281		3,590		3,547		(3,342		)	14,744
Provision for (recovery of) loan losses	(88		)	—		159		50		—			121
Net interest income after provision	10,756			281		3,431		3,497		(3,342		)	14,623
Noninterest income	144			2,404		1,543		1		—			4,092
Noninterest expense	7,414			2,484		4,362		70		—			14,330
Net income before taxes	$	3,486		$	201	$	612	$	3,428	$	(3,342	)	$	4,385

Total assets	$	1,031,062		$	22,572	$	34,605	$	137,842	$	(102,329	)	$	1,123,752

Nature of Business and Basis of Presentation - Initial Public Offering (Details) - Common Stock - IPO $ / shares in Units, $ in Millions	1 Months Ended
	Oct. 31, 2018 USD ($) $ / shares shares
Subsidiary, Sale of Stock [Line Items]
Sale of stock, price per share (in dollars per share) \| $ / shares	$ 12.50
Sale of stock, consideration received \| $	$ 19.8
Parent Company
Subsidiary, Sale of Stock [Line Items]
Number of shares issued in transaction (in shares) \| shares	1,834,310

Nature of Business and Basis of Presentation - Premises and equipment (Details)	3 Months Ended
	Mar. 31, 2020
Premises and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	2 years
Premises and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	7 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	10 years

Nature of Business and Basis of Presentation - Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of-use asset	$ 5,187	$ 5,158
Operating lease, liability	4,036
Adjustment to retained earnings	$ (84,389)	$ (81,618)
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of-use asset			$ 5,200
Operating lease, liability			5,400
Accounting Standards Update 2016-02 \| Revision of Prior Period, Accounting Standards Update, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reclassification of deferred rent			146
Adjustment to retained earnings			$ 54

Nature of Business and Basis of Presentation - Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income (Numerator)
Net income	$ 2,934	$ 3,319
Shares (Denominator)
Weighted average number of shares outstanding, basic (in shares)	13,876,428	13,702,433
Effect of dilutive securities (in shares)	199,328	175,192
Weighted average number of shares outstanding, diluted (in shares)	14,075,756	13,877,625
Per Share Amount
Basic earnings per share (in dollars per share)	$ 0.21	$ 0.24
Diluted earnings per share (in dollars per share)	$ 0.21	$ 0.24
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	251,251	273,600

Nature of Business and Basis of Presentation - Comprehensive Income (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated comprehensive income	$ 767	$ 13
Accumulated Net Investment Gain (Loss) Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before tax	1,057	18
Deferred tax benefit (expense)	(290)	(5)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated comprehensive income	$ 767	$ 13

Investment Securities - Amortized cost to Estimated Fair Value (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 58,467,000		$ 60,811,000
Unrealized Gains	1,182,000		176,000
Unrealized Losses	(125,000)		(159,000)
Fair Value	59,524,000		60,828,000
Proceeds from sales of securities sold	0	$ 0
U.S. government-sponsored enterprises
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,000,000		1,000,000
Unrealized Gains	2,000		0
Unrealized Losses	0		(1,000)
Fair Value	1,002,000		999,000
Municipal
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	514,000		515,000
Unrealized Gains	0		13,000
Unrealized Losses	(43,000)		0
Fair Value	471,000		528,000
Corporate
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,260,000		2,542,000
Unrealized Gains	25,000		46,000
Unrealized Losses	(82,000)		(23,000)
Fair Value	2,203,000		2,565,000
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	54,693,000		56,754,000
Unrealized Gains	1,155,000		117,000
Unrealized Losses	0		(135,000)
Fair Value	$ 55,848,000		$ 56,736,000

Investment Securities - Unrealized Losses (Details) $ in Thousands	Mar. 31, 2020 USD ($) security	Dec. 31, 2019 USD ($) security
Fair Value
Less than 12 months	$ 1,470	$ 21,487
12 months or longer	179	6,764
Total	1,649	28,251
Unrealized Losses
Less than 12 months	(45)	(78)
12 months or longer	(80)	(81)
Total	(125)	(159)
U.S. government-sponsored enterprises
Fair Value
Less than 12 months		0
12 months or longer		999
Total		999
Unrealized Losses
Less than 12 months		0
12 months or longer		(1)
Total		$ (1)
Number of securities in a loss position for greater than twelve months \| security		1
Municipal
Fair Value
Less than 12 months	471
12 months or longer	0
Total	471
Unrealized Losses
Less than 12 months	(43)
12 months or longer	0
Total	(43)
Corporate
Fair Value
Less than 12 months	999	$ 0
12 months or longer	179	519
Total	1,178	519
Unrealized Losses
Less than 12 months	(2)	0
12 months or longer	(80)	(23)
Total	$ (82)	$ (23)
Number of securities in a loss position for greater than twelve months \| security	1	2
Mortgage-backed securities
Fair Value
Less than 12 months		$ 21,487
12 months or longer		5,246
Total		26,733
Unrealized Losses
Less than 12 months		(78)
12 months or longer		(57)
Total		$ (135)
Number of securities in a loss position for greater than twelve months \| security		4

Investment Securities - Pledged Securities (Details) - Federal Home Loan Bank advances - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Amortized Cost
Assets Sold under Agreements to Repurchase [Line Items]
Securities pledged	$ 1,435	$ 1,508
Fair Value
Assets Sold under Agreements to Repurchase [Line Items]
Securities pledged	$ 1,481	$ 1,522

Investment Securities - by Maturity Dates (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Amortized Cost
Within one year	$ 1,000	$ 1,542
Over one to five years	0	0
Over five to ten years	2,000	2,000
Over ten years	774	515
Amortized Cost	58,467	60,811
Fair Value
Within one year	1,002	1,518
Over one to five years	0	0
Over five to ten years	2,023	2,046
Over ten years	651	528
Fair Value	59,524	60,828
Mortgage-backed securities
Amortized Cost
Amortized Cost	54,693	56,754
Fair Value
Fair Value	$ 55,848	$ 56,736

Loans Receivable - Classification of Loans (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	$ 1,190,053	$ 1,173,525
Deferred origination fees, net	(2,254)	(2,404)
Allowance for loan losses	(15,514)	(13,301)	$ (11,347)	$ (11,308)
Loans receivable, net	1,172,285	1,157,820
Residential \| Real estate
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	430,870	427,926
Allowance for loan losses	(4,971)	(4,135)	(3,875)	(3,541)
Commercial
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	151,551	151,109
Allowance for loan losses	(1,663)	(1,548)	(1,427)	(1,578)
Commercial \| Real estate
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	360,601	348,091
Allowance for loan losses	$ (4,423)	(3,572)	(2,848)	(3,003)
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	$ 204,047	198,702
Allowance for loan losses	(3,032)	(2,668)	(2,029)	(2,093)
Consumer \| Credit card
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	41,881	46,412
Allowance for loan losses	(1,414)	(1,368)	(1,159)	(1,084)
Consumer \| Credit card \| Savings Deposits
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	$ 39,600	43,300
Repayment history used for scoring model	6 months
Consumer \| Other consumer
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	$ 1,103	1,285
Allowance for loan losses	$ (11)	$ (10)	$ (9)	$ (9)
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	$ 163,800
Percent of real estate portfolio	45.40%
Owner Occupied Real Estate \| Construction \| Real estate
Loans and Leases Receivable Disclosure [Line Items]
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
Debt service coverage ratio	1.15
Investor Real Estate \| Construction \| Real estate
Loans and Leases Receivable Disclosure [Line Items]
Principal to collateral value ratio, percent	75.00%

Loans Receivable - Accretable Discount (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Receivables [Abstract]
Remaining nonaccretable discounts on loans acquired	$ 285
Carrying value of loans with nonaccretable discounts	855		$ 864
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Accretable discount at beginning of period	429	$ 438
Accretion and payoff of loans	(196)	(9)
Accretable discount at end of period	$ 233	$ 429

Loans Receivable - Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of year	$ 13,301	$ 11,308
Provision for loan losses	2,409	121
Charge-Offs	(204)	(93)
Recoveries	8	11
Balance at end of year	15,514	11,347
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Individually	89		$ 119
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Collectively	15,425		13,182
Outstanding Loan Balances Evaluated for Impairment: Individually	4,984		4,099
Outstanding Loan Balances Evaluated for Impairment: Collectively	1,185,069		1,169,426
Residential \| Real estate
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of year	4,135	3,541
Provision for loan losses	836	334
Charge-Offs	0	0
Recoveries	0	0
Balance at end of year	4,971	3,875
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Individually	0		0
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Collectively	4,971		4,135
Outstanding Loan Balances Evaluated for Impairment: Individually	1,633		2,192
Outstanding Loan Balances Evaluated for Impairment: Collectively	429,237		425,734
Commercial
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of year	1,548	1,578
Provision for loan losses	140	(151)
Charge-Offs	(25)	0
Recoveries	0	0
Balance at end of year	1,663	1,427
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Individually	89		119
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Collectively	1,574		1,429
Outstanding Loan Balances Evaluated for Impairment: Individually	440		474
Outstanding Loan Balances Evaluated for Impairment: Collectively	151,111		150,635
Commercial \| Real estate
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of year	3,572	3,003
Provision for loan losses	851	(157)
Charge-Offs	0	0
Recoveries	0	2
Balance at end of year	4,423	2,848
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Individually	0		0
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Collectively	4,423		3,572
Outstanding Loan Balances Evaluated for Impairment: Individually	1,408		1,433
Outstanding Loan Balances Evaluated for Impairment: Collectively	359,193		346,658
Construction \| Real estate
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of year	2,668	2,093
Provision for loan losses	364	(64)
Charge-Offs	0	0
Recoveries	0	0
Balance at end of year	3,032	2,029
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Individually	0		0
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Collectively	3,032		2,668
Outstanding Loan Balances Evaluated for Impairment: Individually	1,503		0
Outstanding Loan Balances Evaluated for Impairment: Collectively	202,544		198,702
Consumer \| Credit card
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of year	1,368	1,084
Provision for loan losses	217	159
Charge-Offs	(179)	(93)
Recoveries	8	9
Balance at end of year	1,414	1,159
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Individually	0		0
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Collectively	1,414		1,368
Outstanding Loan Balances Evaluated for Impairment: Individually	0		0
Outstanding Loan Balances Evaluated for Impairment: Collectively	41,881		46,412
Consumer \| Other consumer
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of year	10	9
Provision for loan losses	1	0
Charge-Offs	0	0
Recoveries	0	0
Balance at end of year	11	$ 9
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Individually	0		0
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Collectively	11		10
Outstanding Loan Balances Evaluated for Impairment: Individually	0		0
Outstanding Loan Balances Evaluated for Impairment: Collectively	$ 1,103		$ 1,285

Loans Receivable - Past Due Financing Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due	$ 26,567	$ 11,901
Current Loans	1,163,486	1,161,624
Total Loans	1,190,053	1,173,525
Accruing Loans 90 or More Days Past Due	803	620
Non accrual Loans	4,984	4,099
Residential Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans	159	159
Loans 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due	22,553	7,433
Loans 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due	4,014	4,468
Acquired loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due	1,285	1,548
Current Loans	4,599	4,873
Total Loans	5,884	6,421
Accruing Loans 90 or More Days Past Due	498	464
Non accrual Loans	818	880
Acquired loans \| Loans 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due	22	305
Acquired loans \| Loans 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due	1,263	1,243
Residential \| Real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due	10,639	3,140
Current Loans	420,231	424,786
Total Loans	430,870	427,926
Accruing Loans 90 or More Days Past Due	229	374
Non accrual Loans	1,633	2,192
Residential \| Real estate \| Loans 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due	8,986	704
Residential \| Real estate \| Loans 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due	1,653	2,436
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due	3,337	525
Current Loans	148,214	150,584
Total Loans	151,551	151,109
Accruing Loans 90 or More Days Past Due	0	0
Non accrual Loans	440	474
Commercial \| Loans 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due	3,014	172
Commercial \| Loans 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due	323	353
Commercial \| Real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due	6,294	1,946
Current Loans	354,307	346,145
Total Loans	360,601	348,091
Accruing Loans 90 or More Days Past Due	270	237
Non accrual Loans	1,408	1,433
Commercial \| Real estate \| Loans 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due	4,616	275
Commercial \| Real estate \| Loans 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due	1,678	1,671
Construction \| Real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due	2,456	756
Current Loans	201,591	197,946
Total Loans	204,047	198,702
Accruing Loans 90 or More Days Past Due	297	0
Non accrual Loans	1,503	0
Construction \| Real estate \| Loans 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due	2,103	756
Construction \| Real estate \| Loans 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due	353	0
Consumer \| Credit card
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due	3,841	5,534
Current Loans	38,040	40,878
Total Loans	41,881	46,412
Accruing Loans 90 or More Days Past Due	7	9
Non accrual Loans	0	0
Consumer \| Credit card \| Loans 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due	3,834	5,526
Consumer \| Credit card \| Loans 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due	7	8
Consumer \| Other consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due	0	0
Current Loans	1,103	1,285
Total Loans	1,103	1,285
Accruing Loans 90 or More Days Past Due	0	0
Non accrual Loans	0	0
Consumer \| Other consumer \| Loans 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due	0	0
Consumer \| Other consumer \| Loans 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due	$ 0	$ 0

Loans Receivable - Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	$ 5,476		$ 4,360
Recorded Investment With No Allowance	4,745		3,826
Recorded Investment With Allowance	239		273
Total Recorded Investment	4,984		4,099
Related Allowance	89		119
Average Recorded Investment	5,604	$ 7,616
Interest Recognized	12	0
Acquired loans
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	987		1,148
Recorded Investment With No Allowance	818		880
Recorded Investment With Allowance	0		0
Total Recorded Investment	818		880
Related Allowance	0		0
Residential \| Real estate
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	1,838		2,309
Recorded Investment With No Allowance	1,633		2,192
Recorded Investment With Allowance	0		0
Total Recorded Investment	1,633		2,192
Related Allowance	0		0
Average Recorded Investment	1,840	2,399
Interest Recognized	0	0
Commercial
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	559		574
Recorded Investment With No Allowance	201		201
Recorded Investment With Allowance	239		273
Total Recorded Investment	440		474
Related Allowance	89		119
Average Recorded Investment	661	1,513
Interest Recognized	0	0
Commercial \| Real estate
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	1,551		1,477
Recorded Investment With No Allowance	1,408		1,433
Recorded Investment With Allowance	0		0
Total Recorded Investment	1,408		1,433
Related Allowance	0		$ 0
Average Recorded Investment	1,575	1,572
Interest Recognized	3	0
Construction \| Real estate
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	1,528
Recorded Investment With No Allowance	1,503
Recorded Investment With Allowance	0
Total Recorded Investment	1,503
Related Allowance	0
Average Recorded Investment	1,528	2,132
Interest Recognized	$ 9	$ 0

Loans Receivable - Trouble Debt Restructuring (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($) contract	Mar. 31, 2019 contract	Dec. 31, 2019 USD ($)
Financing Receivable, Modifications [Line Items]
Number of Contracts \| contract	5	5
Recorded Investment	$ 454		$ 459
Acquired loans
Financing Receivable, Modifications [Line Items]
Number of Contracts \| contract	3	3
Recorded Investment	$ 145		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	2
Recorded Investment	$ 309		314
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	454		459
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	$ 309		$ 314

Loans Receivable - Outstanding Loan Commitments (Details) - Commitments to Extend Credit - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	$ 262,324	$ 260,573
Letters of credit	5,260	5,305
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	42,787	36,442
Commercial real estate \| Real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	15,846	31,411
Commercial real estate \| Construction commitments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	111,629	114,999
Residential real estate \| Real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	14,903	13,754
Residential real estate \| Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	28,242	26,407
Residential real estate \| Residential loans held for sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	8,900	2,646
Consumer \| Secured credit card
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	48,435	37,517
Consumer \| Personal
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	$ 482	$ 43

Loans Receivable - Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of year	$ 13,301	$ 11,308
Provision charged to operating expense	2,409	121
Balance at end of year	15,514	11,347
Off Balance Sheet Reserve
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of year	1,226	1,053
Provision charged to operating expense	45	(10)
Balance at end of year	1,271	1,043
Mortgage Loan Put-back Reserve
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of year	575	501
Provision charged to operating expense	106	24
Charge-offs	(14)	(10)
Balance at end of year	$ 667	$ 515

Derivative Financial Instruments (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Open Forward Delivery Sales Agreements
Derivatives, Fair Value [Line Items]
Notional amount	$ 107,482	$ 61,000
Fair amounts, liabilities	(2,072)	(125)
Open Mandatory Delivery Commitments
Derivatives, Fair Value [Line Items]
Notional amount	29,496	22,888
Fair value amounts, assets	(21)	115
Interest Rate Lock Commitments
Derivatives, Fair Value [Line Items]
Notional amount	112,995	32,365
Fair value amounts, assets	$ (398)	$ 122

Leases - Additional Information (Details) $ in Thousands	3 Months Ended
Leases - Additional Information (Details) $ in Thousands	Mar. 31, 2020 USD ($) branch	Dec. 31, 2019 USD ($)	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	2.32%	2.24%
ROU assets \| $	$ 3,673	$ 3,920
Related lease liabilities \| $	$ 4,036	$ 4,291
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Remaining term of contract	1 year
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Remaining term of contract	6 years

Leases - Assets and Liabilities and Lease Payment Obligations (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Lease asset	$ 5,187	$ 5,158
Less: Accumulated amortization	(1,514)	(1,238)
Net lease asset	3,673	3,920
Lease liability	4,036	4,291
Other liabilities, net	22,857	$ 20,297
Amounts due in:
2020	969
2021	1,315
2022	926
2023	744
2024	420
Total future lease payments	4,374
Discount of cash flows	(338)
Present value of net future lease payments	$ 4,036

Fair Value - Financial Instruments Measured at FV on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	$ 59,524	$ 60,828
Loans held for sale	73,955	71,030
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	59,524	60,828
Loans held for sale	73,955	71,030
Derivative assets		237
Derivative liabilities	2,491	125
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
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	59,524	60,828
Loans held for sale	73,955	71,030
Derivative assets		237
Derivative liabilities	2,491	125
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
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	1,002	999
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	1,002	999
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	1,002	999
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	471	528
Municipal \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	471	528
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	471	528
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	2,203	2,565
Corporate \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	2,203	2,565
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	2,203	2,565
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	55,848	56,736
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	55,848	56,736
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	55,848	56,736
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	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans Held for Sale	$ 73,955	$ 71,030
Aggregate fair value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans Held for Sale	73,955	71,030
Contractual principal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans Held for Sale	69,441	67,118
Difference
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans Held for Sale	$ 4,514	$ 3,912

Fair Value - Impaired Loans and Foreclosed Real Estate (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, net	$ 239	$ 273
Impaired loans, valuation allowance	89	119
Impaired loans	4,984	4,099
Foreclosed real estate	3,402	2,384
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	4,895	3,980
Foreclosed real estate	3,402	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	5,000	4,100
Impaired loans, valuation allowance	89	119
Impaired loans	4,895	3,980
Foreclosed real estate	$ 3,402	$ 2,384
Minimum \| Level 3 Inputs \| Measurement Input, Cost to Sell \| Valuation Technique, Discounted Cash Flow
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discounts to appraisals or cash flows for estimated holding and/or selling costs (percent)	11.00%
Minimum \| Level 3 Inputs \| Measurement Input, Cost to Sell \| Valuation Technique, Consensus Pricing Model
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discounts to appraisals for estimated holding and/or selling costs (percent)	11.00%
Maximum \| Level 3 Inputs \| Measurement Input, Cost to Sell \| Valuation Technique, Discounted Cash Flow
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discounts to appraisals or cash flows for estimated holding and/or selling costs (percent)	25.00%
Maximum \| Level 3 Inputs \| Measurement Input, Cost to Sell \| Valuation Technique, Consensus Pricing Model
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
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	Mar. 31, 2020	Dec. 31, 2019
Financial assets
Cash and due from banks	$ 9,578	$ 10,530
Interest bearing deposits at other financial institutions	164,313	102,447
Federal funds sold	979	1,847
Carrying Amount \| Level 1
Financial assets
Cash and due from banks	9,578	10,530
Interest bearing deposits at other financial institutions	164,313	102,447
Federal funds sold	979	1,847
Restricted investments	4,274	3,966
Financial liabilities
Noninterest bearing deposits	363,423	291,777
Carrying Amount \| Level 3
Financial assets
Loans receivable, net	1,172,285	1,157,820
Financial liabilities
Interest bearing deposits	939,490	933,644
FHLB advances and other borrowed funds	44,319	47,645
Fair Value \| Level 1
Financial assets
Cash and due from banks	9,578	10,530
Interest bearing deposits at other financial institutions	164,313	102,447
Federal funds sold	979	1,847
Restricted investments	4,274	3,966
Financial liabilities
Noninterest bearing deposits	363,423	291,777
Fair Value \| Level 3
Financial assets
Loans receivable, net	1,179,026	1,155,922
Financial liabilities
Interest bearing deposits	942,888	934,349
FHLB advances and other borrowed funds	$ 44,349	$ 47,678

Segments (Details) $ in Thousands	3 Months Ended
Segments (Details) $ in Thousands	Mar. 31, 2020 USD ($) segment	Mar. 31, 2019 USD ($)	Dec. 31, 2019 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments \| segment	4
Interest income	$ 21,744	$ 18,318
Interest expense	4,057	3,574
Net interest income	17,687	14,744
Provision charged to operating expense	2,409	121
Net interest income after provision for loan losses	15,278	14,623
Noninterest income	6,579	4,092
Noninterest expense	17,843	14,330
Income before income taxes	4,014	4,385
Total assets	1,507,847	1,123,752	$ 1,428,495
Operating Segments \| Commercial Bank
Segment Reporting Information [Line Items]
Interest income	16,107	13,911
Interest expense	3,587	3,243
Net interest income	12,520	10,668
Provision charged to operating expense	2,192	(88)
Net interest income after provision for loan losses	10,328	10,756
Noninterest income	225	144
Noninterest expense	8,704	7,414
Income before income taxes	1,849	3,486
Total assets	1,354,546	1,031,062
Operating Segments \| CBHL
Segment Reporting Information [Line Items]
Interest income	366	351
Interest expense	209	70
Net interest income	157	281
Provision charged to operating expense	0	0
Net interest income after provision for loan losses	157	281
Noninterest income	4,345	2,404
Noninterest expense	3,448	2,484
Income before income taxes	1,054	201
Total assets	75,261	22,572
Operating Segments \| OpenSky®
Segment Reporting Information [Line Items]
Interest income	4,706	3,590
Interest expense	0	0
Net interest income	4,706	3,590
Provision charged to operating expense	217	159
Net interest income after provision for loan losses	4,489	3,431
Noninterest income	2,008	1,543
Noninterest expense	5,582	4,362
Income before income taxes	915	612
Total assets	44,889	34,605
Operating Segments \| Corporate
Segment Reporting Information [Line Items]
Interest income	3,461	3,808
Interest expense	278	261
Net interest income	3,183	3,547
Provision charged to operating expense	0	50
Net interest income after provision for loan losses	3,183	3,497
Noninterest income	1	1
Noninterest expense	109	70
Income before income taxes	3,075	3,428
Total assets	158,072	137,842
Eliminations
Segment Reporting Information [Line Items]
Interest income	(2,896)	(3,342)
Interest expense	(17)	0
Net interest income	(2,879)	(3,342)
Provision charged to operating expense	0	0
Net interest income after provision for loan losses	(2,879)	(3,342)
Noninterest income	0	0
Noninterest expense	0	0
Income before income taxes	(2,879)	(3,342)
Total assets	$ (124,921)	$ (102,329)

Subsequent Events (Details) $ in Thousands	Apr. 30, 2020 USD ($) customer loan	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Subsequent Event [Line Items]
Loans receivable, gross		$ 1,190,053	$ 1,173,525
Credit card \| Consumer
Subsequent Event [Line Items]
Loans receivable, gross		$ 41,881	$ 46,412
Paycheck Protection Program \| Subsequent Event
Subsequent Event [Line Items]
Number of loans approved and recorded \| loan	1,110
Loans receivable, gross	$ 246,000
Payment Deferral \| Commercial And Consumer Portfolio Segments \| Subsequent Event
Subsequent Event [Line Items]
Loans receivable, gross	107,300
COVID Relief Program \| Credit card \| Consumer \| Subsequent Event
Subsequent Event [Line Items]
Loans receivable, gross	$ 716
Number of borrowers \| customer	2,139
Percent of total customers	0.71%

Label	Element	Value
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (54,000)
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (54,000)