0001419536-21-000058 | 10-K | XBRL Viewer

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Cover Page - USD ($) $ in Millions	12 Months Ended
Cover Page - USD ($) $ in Millions	Dec. 31, 2020	Mar. 10, 2021
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2020
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-38671
Entity Registrant Name	CAPITAL BANCORP, INC
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	52-2083046
Entity Address, Address Line One	2275 Research Boulevard
Entity Address, Address Line Two	Suite 600
Entity Address, City or Town	Rockville
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	20850
City Area Code	301
Local Phone Number	468-8848
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	CBNK
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Public Float	$ 114.9
Entity Common Stock, Shares Outstanding		13,759,116
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE The information required by Items 10, 11, 12, 13 and 14 of Part III of this Annual Report on Form 10-K will be found in the Company’s definitive proxy statement for its 2021 Annual Meeting of Stockholders, to be filed pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended, and such information is incorporated herein by this reference.
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Entity Central Index Key	0001419536
Amendment Flag	false
ICFR Auditor Attestation Flag	false

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Assets
Cash and due from banks	$ 18,456	$ 10,530
Interest bearing deposits at other financial institutions	126,081	102,447
Federal funds sold	2,373	1,847
Total cash and cash equivalents	146,910	114,824
Investment securities available for sale	99,787	60,828
Restricted investments	3,958	3,966
Loans held for sale	107,154	71,030
U.S. Small Business Administration ("SBA") Payroll Protection Program ("PPP") loans receivable, net of fees	201,018	0
Portfolio loans receivable, net of deferred fees and costs and net of allowance for loan losses of $23,434 and $13,301	1,292,068	1,156,934
Premises and equipment, net	4,464	6,092
Accrued interest receivable	8,134	4,770
Deferred tax asset	6,818	4,263
Foreclosed real estate	3,326	2,384
Other assets	2,956	2,518
Total assets	1,876,593	1,427,609
Deposits
Noninterest-bearing, including related party balances of $17,849 and $16,009	608,559	291,777
Interest-bearing, including related party balances of $128,134 and $125,304	1,043,569	933,644
Total deposits	1,652,128	1,225,421
Federal Home Loan Bank advances	22,000	32,222
Other borrowed funds	14,016	15,423
Accrued interest payable	1,134	1,801
Other liabilities	28,004	19,411
Total liabilities	1,717,282	1,294,278
Stockholders' equity
Common stock, $.01 par value; 49,000,000 shares authorized; 13,753,529 and 13,894,842 issued and outstanding	138	139
Additional paid-in capital	50,602	51,561
Retained earnings	106,854	81,618
Accumulated other comprehensive income	1,717	13
Total stockholders' equity	159,311	133,331
Total liabilities and stockholders' equity	$ 1,876,593	$ 1,427,609

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Allowance for loan losses	$ 23,434	$ 13,301
Noninterest bearing deposits, related party	17,848	16,009
Interest bearing deposits, related party	$ 130,586	$ 125,304
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)	13,753,529	13,894,842
Common stock, shares outstanding (in shares)	13,753,529	13,894,842

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Interest income
Loans, including fees	$ 95,367	$ 80,131
Investment securities available for sale	1,292	924
Federal funds sold and other	592	1,125
Total interest income	97,251	82,180
Interest expense
Deposits, includes interest expense paid to related parties of $1,015 and $1,727	11,524	13,689
Borrowed funds	1,658	2,153
Total interest expense	13,182	15,842
Net interest income	84,069	66,338
Provision for loan losses	11,242	2,791
Net interest income after provision for loan losses	72,827	63,547
Noninterest income
Gain on sale of investment securities available for sale	20	26
Other fees and charges	2,906	1,567
Total noninterest income	61,061	25,692
Noninterest expenses
Salaries and employee benefits	44,359	32,586
Occupancy and equipment	5,170	4,360
Professional fees	4,900	2,871
Data processing	26,917	15,512
Advertising	2,530	2,066
Loan processing	3,811	1,894
Other real estate expenses, net	69	122
Other operating expenses	10,995	7,114
Total noninterest expenses	98,751	66,525
Income before income taxes	35,137	22,714
Income tax expense	9,314	5,819
Net income	$ 25,823	$ 16,895
Basic earnings per share (in dollars per share)	$ 1.87	$ 1.23
Diluted earnings per share (in dollars per share)	$ 1.87	$ 1.21
Weighted average common shares outstanding:
Basic (in shares)	13,793,256	13,733,131
Diluted (in shares)	13,800,176	13,968,585
Service charges on deposits
Noninterest income
Noninterest income	$ 520	$ 542
Credit card fees
Noninterest income
Noninterest income	16,966	7,602
Mortgage banking revenue
Noninterest income
Noninterest income	$ 40,649	$ 15,955

Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Statement [Abstract]
Deposits, related party	$ 1,015	$ 1,727

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 25,823	$ 16,895
Other comprehensive income (loss):
Unrealized gain on investment securities available for sale	2,340	868
Reclassification of realized gain on sales of investment securities available for sale	(20)	(26)
Unrealized loss on cash flow hedging derivative	0	(5)
Other comprehensive income (loss)	2,320	837
Income tax expense relating to the items above	(616)	(229)
Other comprehensive income	1,704	608
Comprehensive income	$ 27,527	$ 17,503

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Additional Paid-in Capital	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2018			13,672,479
Beginning balance at Dec. 31, 2018	$ 114,564	$ (54)	$ 137	$ 49,321	$ 65,701	$ (54)	$ (595)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	16,895				16,895
Unrealized gain on investment securities available for sale, net of income taxes	612						612
Unrealized loss on cash flow hedging derivative, net of income taxes	$ (4)						(4)
Stock options exercised, including tax benefit (in shares)	221,710		221,710
Stock options exercised, including tax benefit	$ 593		$ 2	1,515	(924)
Shares issued as compensation (in shares)			29,133
Shares issued as compensation	301			301
Stock-based compensation	795			795
Shares repurchased and retired (in shares)			(28,480)
Shares repurchased and retired	$ (371)			(371)
Ending balance (in shares) at Dec. 31, 2019	13,894,842		13,894,842
Ending balance at Dec. 31, 2019	$ 133,331		$ 139	51,561	81,618		13
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	25,823				25,823
Unrealized gain on investment securities available for sale, net of income taxes	$ 1,704						1,704
Stock options exercised, including tax benefit (in shares)	142,901		142,901
Stock options exercised, including tax benefit	$ 922		$ 2	1,083	(163)
Shares issued as compensation (in shares)			19,900
Shares issued as compensation	268			268
Stock-based compensation	983			983
Shares repurchased and retired (in shares)			(304,114)
Shares repurchased and retired	$ (3,720)		$ (3)	(3,293)	(424)
Ending balance (in shares) at Dec. 31, 2020	13,753,529		13,753,529
Ending balance at Dec. 31, 2020	$ 159,311		$ 138	$ 50,602	$ 106,854		$ 1,717

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities
Net income	$ 25,823	$ 16,895
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	11,242	2,791
Provision for mortgage put-back reserve	598	184
Provision for off balance sheet credit risk	550	173
Net amortization on investments	297	160
Premises and equipment depreciation	844	1,113
Lease asset amortization	1,050	1,238
Stock-based compensation expense	983	795
Director and employee compensation paid in Company stock	268	301
Deferred income tax benefit	(3,170)	(839)
Amortization of debt issuance cost	139	30
Gain on sale of securities available for sale	(20)	(26)
Mortgage banking revenue	(40,649)	(15,955)
Proceeds from sales of loans held for sale	1,313,437	556,640
Originations of loans held for sale	(1,308,912)	(593,189)
Changes in assets and liabilities:
Accrued interest receivable	(3,364)	(308)
Prepaid income taxes and taxes payable	0	81
Other assets	(438)	(418)
Accrued interest payable	(667)	236
Other liabilities	7,446	2,886
Net cash provided by operating activities	5,457	(27,212)
Cash flows from investing activities
Purchases of securities available for sale	(53,926)	(38,587)
Proceeds from maturities, calls and principal paydowns of securities available for sale	16,045	22,119
Proceeds from sale of securities available for sale	965	3,280
Sales (purchases) of restricted investments	8	(1,463)
Net increase in SBA-PPP loans receivable	(201,018)	0
Net increase in loans receivable	(147,319)	(173,076)
Net purchases of premises and equipment	(267)	(303)
Proceeds from sales of foreclosed real estate	0	49
Net cash used in investing activities	(385,512)	(187,981)
Net increase (decrease) in:
Noninterest bearing deposits	316,782	49,518
Interest bearing deposits	109,925	220,662
Securities sold under agreements to repurchase	0	(3,332)
Federal funds purchased	0	(2,000)
Federal Home Loan Bank advances, net	(10,222)	30,222
Other borrowed funds	(1,546)	0
Repurchase of common stock	(3,720)	(371)
Proceeds from exercise of stock options	922	595
Net cash provided by financing activities	412,141	295,294
Net increase in cash and cash equivalents	32,086	80,101
Cash and cash equivalents, beginning of year	114,824	34,723
Cash and cash equivalents, end of year	146,910	114,824
Noncash investing and financing activities:
Loans transferred to foreclosed real estate	942	2,291
Change in unrealized gains on investments	2,320	842
Change in fair value of loans held for sale	5,669	1,420
Change in fair value of cash flow hedging derivative	0	(5)
Establishment of right of use asset	0	5,158
Establishment of lease liability	0	5,358
Cash paid during the period for:
Taxes	11,998	5,451
Interest	$ 13,849	$ 15,606

Nature of Business and Basis of Presentation

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Nature of Business and Basis of Presentation

Nature of Business

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

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

In addition, the Company owns all of the stock of Capital Bancorp (MD) Statutory Trust I (the “Trust”). The Trust is a special purpose non-consolidated entity organized for the sole purpose of issuing trust preferred securities.

Basis of Presentation

The accompanying consolidated financial statements include the activity of the Company and its wholly-owned subsidiaries, the Bank and Church Street Capital. All intercompany transactions have been eliminated in consolidation. The Company reports its activities as a four business segments: commercial banking; mortgage lending; credit cards; and corporate activities. In determining the appropriateness of segment definition, the Company considers components of the business about which financial information is available and regularly evaluated relative to resource allocation and performance assessment. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and conform to general practices within the banking industry.

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 banks, interest bearing deposits with banks and federal funds sold. Generally, federal funds are sold for one-day periods.

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

Investment securities

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

Loans held for sale

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

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

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

Portfolio loans and the allowance for loan losses

Loans are stated at the principal amount outstanding, adjusted for deferred origination fees, deferred origination costs, discounts on loans acquired, and the allowance for loan losses. Interest is accrued based on the loan principal balances and stated interest rates. Origination fees and costs are recognized as an adjustment to the related loan yield using approximate interest methods.

The Company has provided short-term deferrals of loan principal and/or interest payments for customers who have been affected by the COVID-19 pandemic. Customers receiving payment deferrals must meet certain criteria, such as being in good standing and not more than 30 days past due prior to the pandemic. In most cases, the deferred principal and/or interest amounts will be collected at the end of the life of the loan and will not accrue additional interest. The granting of a deferral of principal and/or interest under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which was enacted on March 27, 2020, and based on interagency guidelines, does not subject the loan to the past due, non-accrual, or troubled debt restructurings (“TDR”) policies described below. Upon exiting the loan modification deferral program, the measurement of loan delinquency will resume based in the number of days of delinquency as at the date of modification. The following discussions of past due, non-accrual and TDR policies remain valid for situations not covered by the CARES Act.

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

Outstanding portfolio loans deferred due to COVID-19, which decreased by 78.9 percent from $144.0 million at June 30, 2020 to $30.5 million at December 31, 2020, are shown in the table below:


Loan Modifications (1)
(dollars in millions)
	December 31, 2020					June 30, 2020
			Deferred Loans			Deferred Loans
Sector	Total Loans Outstanding		Balance		# of Loans Deferred	Balance		# of Loans Deferred
Accommodation & Food Services	$	89.1	$	14.7	16	$	42.6	36
Real Estate and Rental Leasing	508.7		5.5		10	45.6		67
Other Services Including Private Households	174.2		1.1		3	17.3		36
Educational Services	20.9		—		—	9.8		6
Construction	260.1		—		—	4.2		6
Professional, Scientific, and Technical Services	86.3		1.4		3	5.0		11
Arts, Entertainment & Recreation	39.0		0.7		2	5.0		9
Retail Trade	24.6		0.3		1	3.0		8
Healthcare & Social Assistance	88.5		0.9		1	4.7		11
Wholesale Trade	13.6		—		—	0.9		1
All other (1)	216.1		5.9		7	5.9		13
Total	$	1,521.1	$	30.5	43	$	144.0	204
_______________ (1) Excludes the minor modifications and deferrals made for OpenSky® secured card customers.

The Company generally discontinues the accrual of interest when any portion of the principal and interest is 90 days past due and collateral is insufficient to discharge the debt in full. Generally, interest payments on nonaccrual loans are recorded as a reduction of the principal balance.

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

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

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

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

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

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

Premises and equipment

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

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 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

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

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

The Company accounts for our existing operating leases consistent with prior guidance except for the incremental balance sheet recognition for leases. The adoption of this standard resulted in the Company recognizing lease right-of-use assets and related lease liabilities totaling $5.2 million and $5.4 million, respectively, as of January 1, 2019. The difference between the lease assets and the lease liabilities was $146 thousand of deferred rent, which was reclassified to lease liabilities, and the remainder was recorded as an adjustment to retained earnings in the amount of $54 thousand. The adoption of this ASU did not have a significant impact on the Company’s consolidated statement of income. Additional information is included in Note 7 - Leases.

Derivative Financial Instruments

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

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

Fair Value Measurements

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

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

management judgment may be necessary to estimate fair value. In developing our fair value estimates, we strive 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. See the Fair Value note to our consolidated financial statements.

Income Taxes

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

Earnings per share

Earnings per share is computed by dividing net income available to common stockholders by the weighted average number of shares outstanding. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding, adjusted for the dilutive effect of stock options and restricted stock using the treasury stock method. At December 31, 2020 and 2019, there were 504,861 and 7,628 stock options, respectively, that were not included in the calculation as their effect would have been anti-dilutive.

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

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


Earnings Per Share	For the Years Ended December 31,
	2020					2019
(dollars in thousands, except per share information)	Income		Weighted Average Shares	Per Share Amount		Income		Weighted Average Shares	Per Share Amount
Basic EPS
Net income available to common stockholders	$	25,823	13,793,256	$	1.87	$	16,895	13,733,131	$	1.23
Effect of dilutive securities	—		6,920			—		235,454
Dilutive EPS per common share	$	25,823	13,800,176	$	1.87	$	16,895	13,968,585	$	1.21

Comprehensive income

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

The Company's only two components of other comprehensive income are unrealized gains and losses on investment securities available for sale, net of income taxes, and unrealized gains and losses on cash flow hedges, net of income taxes. Information concerning the Company's accumulated other comprehensive income as of December 31, 2020, and 2019 are as follows:


Comprehensive Income	For the Years Ended December 31,
(in thousands)	2020		2019
Unrealized gains on securities available for sale	$	2,337	$	18
Deferred tax expense	(620)		(5)




Total accumulated comprehensive income	$	1,717	$	13

Recently issued accounting pronouncements:

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

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

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

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 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 released ASU 2020-04 - Reference Rate Reform, Topic 848, which provides guidance to provide temporary guidance to ease the potential accounting burden in accounting for, or recognizing the effects from, reference rate reform on financial reporting. The new standard is a result of London Interbank Offered Rate (“LIBOR”) likely being discontinued as an available benchmark rate. The standard is elective and provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, or other transactions that reference LIBOR, or another reference rate expected to be discontinued. The amendments in the update are effective for all entities between March 12,2020 and December 31, 2022. The Company is currently evaluating products and preparing to offer new rates. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company's financial position, results of operations or cash flows.

Reclassifications:

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

Cash and Cash Equivalents	12 Months Ended
Cash and Cash Equivalents	Dec. 31, 2020
Cash and Cash Equivalents [Abstract]
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash and due from banks, interest bearing deposits and federal funds sold. The Bank is required by regulations to maintain an average cash reserve balance based on a percentage of deposits. At December 31, 2020 and 2019, the requirements were satisfied by amounts on deposit with the Federal Reserve Bank and cash on hand.

Investment Securities

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Investment Securities

The investment securities portfolio consists primarily of U.S. government sponsored entity securities, asset-backed securities, securities issued by states, counties and municipalities, corporate bonds and mortgage backed securities (“MBS”). The asset-backed securities are comprised of student loan collateral issued by the Federal Family Education Loan Program (“FFELP”) which includes a minimum of a 97% government repayment guarantee, as well as additional support in excess of the government guaranteed portion.

Note 3 - Investment Securities (continued)

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


Investment Securities Available for Sale
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
(in thousands)
December 31, 2020
Asset-backed securities	$	10,839	$	42	$	—	$	10,881
Municipal	10,836		108		(17)		10,927
Corporate	5,759		30		(22)		5,767
Mortgage-backed securities	70,016		2,208		(12)		72,212
	$	97,450	$	2,388	$	(51)	$	99,787

December 31, 2019
U.S. government-sponsored agencies	$	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

Proceeds from sales of the security sold during the year ended December 31, 2020 and 2019 were $1.0 million and $3.3 million respectively, and resulted in aggregate realized gains of $20 thousand for December 31, 2020 and aggregate realized gains of $26 thousand for the same period in 2019.

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


Investment Securities Unrealized Losses
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(in thousands)
December 31, 2020
Asset-backed securities	$	—	$	—	$	—	$	—	$	—	$	—
Municipal	3,151		(17)		—		—		3,151		(17)
Corporate	1,994		(6)		244		(16)		2,238		(22)
Mortgage-backed securities	2,410		(12)		—		—		2,410		(12)
	$	7,555	$	(35)	$	244	$	(16)	$	7,799	$	(51)

December 31, 2019
U.S. government-sponsored agencies	$	—	$	—	$	999	$	(1)	$	999	$	(1)
Municipal	—		—		—		—		—		—
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 December 31, 2020, there was one corporate security that has been in a loss position for greater than twelve months. Management believes that all unrealized losses have resulted from temporary changes in 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.

Note 3 - Investment Securities (continued)

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


Pledged Securities
	For the Years Ended December 31,
	2020				2019
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value

Federal Home Loan Bank advances	1,142		1,189		1,508		1,522
	$	1,142	$	1,189	$	1,508	$	1,522

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


Investment Securities - Contractual Maturities
	For the Years Ended December 31,
	2020				2019
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	—	$	—	$	1,542	$	1,518
Over one to five years	—		—		—		—
Over five to ten years	5,500		5,524		2,000		2,046
Over ten years	21,934		22,051		515		528
Mortgage-backed securities(1)	70,016		72,212		56,754		56,736
	$	97,450	$	99,787	$	60,811	$	60,828

_____

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

SBA-PPP Loans

12 Months Ended

Dec. 31, 2020

Loans and Leases Receivable Disclosure [Line Items]

SBA-PPP Loans

Portfolio Loans Receivable

Major categories of portfolio loans are as follows:


Portfolio Loan Categories
	December 31,
(in thousands)	2020		2019
Real estate:
Residential	$	437,860	$	427,926
Commercial	392,550		348,091
Construction	224,904		198,702
Commercial	157,127		151,109
Credit card	102,186		45,526
Other consumer	1,649		1,285
	1,316,276		1,172,639
Deferred origination fees, net	(774)		(2,404)
Allowance for loan losses	(23,434)		(13,301)
Portfolio loans receivable, net	$	1,292,068	$	1,156,934

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

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

Commercial Real Estate Loans. Commercial real estate loans are originated on owner-occupied and non-owner-occupied properties. These loans may be more adversely affected by conditions in the real estate markets or in the general economy. Commercial loans that are secured by owner-occupied commercial real estate and primarily collateralized by operating cash flows are also included in this category of loans. As of December 31, 2020, there were approximately $200.3 million of owner-occupied commercial real estate loans, representing approximately 15.2% of the total loan portfolio. Commercial real estate loan terms are generally extended for 10 years or less and amortize generally over 25 years or less. The interest rates on commercial real estate loans have initial fixed rate terms that adjust typically at 5 years and origination fees are routinely charged for services. Personal guarantees from the principal owners of the business are generally required, supported by a review of the principal owners’ personal financial statements and global debt service obligations. The properties securing the portfolio are generally diverse in terms and type. This diversity helps reduce the exposure to adverse economic events that affect any single industry.

Note 5 - Portfolio Loans Receivable (continued)

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

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

Credit Cards. Through the OpenSky® credit card division, the Company offers credit cards on a nationwide basis to under-banked populations and those looking to rebuild their credit scores 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 $98.5 million and $43.3 million of the credit card balances were secured by savings deposits held by the Bank as of December 31, 2020 and 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.

Acquired loans through acquisitions are recorded at estimated fair value on their purchase date with no carryover of the related allowance for loan losses. In estimating the fair value of loans acquired, certain factors were considered, including the remaining lives of the acquired loans, payment history, estimated prepayments, estimated loss ratios, estimated value of the underlying collateral, and the net present value of cash flows expected. Discounts on loans that were not considered impaired at acquisition were recorded as an accretable discount, which will be recognized in interest income over the terms of the related loans. For loans considered to be impaired, the difference between the contractually required payments and expected cash flows was recorded as a nonaccretable discount. The remaining nonaccretable discounts on loans acquired were $285 thousand at December 31, 2020 and 2019. Loans with nonaccretable discounts had a carrying value of $0.8 million and $0.9 million as of December 31, 2020 and 2019, respectively.

Note 5 - Portfolio Loans Receivable (continued)

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


Accretable Discounts on Loans Acquired
	December 31,
(in thousands)	2020		2019
Accretable discount at beginning of period	$	429	$	438
Accretion and payoff of loans	(208)		(9)
Accretable discount at end of period	$	221	$	429

The allowance for loan losses consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-impaired loans and is based on historical loss experience adjusted for current economic factors. The following tables present, by class and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans as of December 31, 2020 and 2019.


Allowance for Loan Losses
(in thousands)			Provision for Loan Losses								Allowance for Loan Losses Ending Balance Evaluated for Impairment:				Outstanding Loan Balances Evaluated for Impairment:
December 31, 2020	Beginning Balance				Charge-Offs		Recoveries		Ending Balance		Individually		Collectively		Individually		Collectively
Real estate:
Residential	$	4,135	$	3,018	$	—	$	—	$	7,153	$	—	$	7,153	$	4,687	$	433,173
Commercial	3,572		3,214		—		—		6,786		—		6,786		2,358		390,192
Construction	2,668		2,216		(296)		7		4,595		—		4,595		1,736		223,168
Commercial	1,548		1,102		(233)		—		2,417		253		2,164		1,182		155,945
Credit card (1)	1,368		1,681		(637)		50		2,462		—		2,462		—		102,186
Other consumer (1)	10		11		—		—		21		—		21		—		1,649
	$	13,301	$	11,242	$	(1,166)	$	57	$	23,434	$	253	$	23,181	$	9,963	$	1,306,313

December 31, 2019
Real estate:
Residential	$	3,541	$	634	$	(40)	$	—	$	4,135	$	—	$	4,135	$	2,192	$	425,734
Commercial	3,003		556		—		13		3,572		—		3,572		1,433		346,658
Construction	2,093		575		—		—		2,668		—		2,668		—		198,702
Commercial	1,578		299		(331)		2		1,548		119		1,429		474		150,635
Credit card (1)	1,084		726		(461)		19		1,368		—		1,368		—		45,526
Other consumer (1)	9		1		—		—		10		—		10		—		1,285
	$	11,308	$	2,791	$	(832)	$	34	$	13,301	$	119	$	13,182	$	4,099	$	1,168,540

_______________

(1) Credit cards loans are collectively evaluated by past due status and as such are not individually risk rated.

Note 5 - Portfolio Loans Receivable (continued)

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


Portfolio Loans Past Due			Loans 90 or More Days Past Due		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 or More days Past Due		Nonaccrual Loans
	Loans 30-89 Days Past Due
(in thousands)
December 31, 2020
Real estate:
Residential	$	1,029	$	3,539	$	4,568	$	433,292	$	437,860	$	—	$	3,581
Commercial	36		2,583		2,619		389,931		392,550		225		2,358
Construction	1,444		442		1,886		223,018		224,904		—		1,886
Commercial	486		741		1,227		155,900		157,127		—		1,182
Credit card	13,811		6		13,817		88,369		102,186		6		—
Other consumer	—		—		—		1,649		1,649		—		—
	$	16,806	$	7,311	$	24,117	$	1,292,159	$	1,316,276	$	231	$	9,007

Acquired loans included above	$	36	$	565	$	601	$	4,675	$	5,276	$	225	$	381

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		39,992		45,526		8		—
Other consumer	—		—		—		1,285		1,285		—		—
	$	7,433	$	4,468	$	11,901	$	1,160,738	$	1,172,639	$	619	$	4,099

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

Note 5 - Portfolio Loans Receivable (continued)

Impaired loans also include acquired loans for which management has recorded a nonaccretable discount. Impaired loans as of December 31, 2020 and 2019 were as follows:


Impaired Portfolio Loans
	Unpaid Contractual Principal Balance		Recorded Investment with no Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment		Interest Recognized
(in thousands)
December 31, 2020
Real estate
Residential	$	3,960	$	3,726	$	—	$	3,726	$	—	$	3,982	$	136
Commercial	2,490		2,358		—		2,358		—		2,519		46
Construction	1,996		1,886		—		1,886		—		1,809		15
Commercial	1,344		791		391		1,182		253		1,826		58


	$	9,790	$	8,761	$	391	$	9,152	$	253	$	10,136	$	255

Acquired loans included above	$	548	$	381	$	—	$	381	$	—	$	555	$	3

December 31, 2019
Real estate
Residential	$	2,309	$	2,192	$	—	$	2,192	$	—	$	2,510	$	8
Commercial	1,477		1,433		—		1,433		—		1,620		18

Commercial	574		201		273		474		119		777		9


	$	4,360	$	3,826	$	273	$	4,099	$	119	$	4,907	$	35

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

There were $175 thousand and $481 thousand, respectively, of loans secured by one to four family residential properties in the process of foreclosure as of December 31, 2020 and 2019.

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:

Note 5 - Portfolio Loans Receivable (continued)

Special Mention

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

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

Substandard

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

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

Doubtful

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

Note 5 - Portfolio Loans Receivable (continued)

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


Classified Loans
(in thousands)	Pass(1)		Special Mention		Substandard		Doubtful		Total
December 31, 2020
Real estate:
Residential	$	428,260	$	5,150	$	4,450	$	—	$	437,860
Commercial	383,311		6,881		2,358		—		392,550
Construction	220,057		1,112		3,735		—		224,904
Commercial	145,365		9,766		1,996		—		157,127
Credit card	102,186		—		—		—		102,186
Other consumer	1,649		—		—		—		1,649
Total	$	1,280,828	$	22,909	$	12,539	$	—	$	1,316,276

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	45,526		—		—		—		45,526
Other consumer	1,285		—		—		—		1,285
Total	$	1,156,665	$	10,850	$	5,124	$	—	$	1,172,639

________________________

(1) Pass includes loans graded exceptional, very good, good, satisfactory and pass/watch, in addition to credit card loans which are not individually graded.

Note 5 - Portfolio Loans Receivable (continued)

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


Troubled Debt Restructurings
	Number of Contracts	Recorded Investment
(dollars in thousands)		Performing		Nonperforming		Total
December 31, 2020
Real estate:
Residential	3	$	—	$	145	$	145


Commercial	2	—		294		294


Total	5	$	—	$	439	$	439

Acquired loans included above	3	$	—	$	145	$	145

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

Total	5	$	—	$	459	$	459

Acquired loans included above	3	$	—	$	145	$	145

During the year ended December 31, 2020, the Company did not incur any new TDR loans. The Company had no defaulted TDR loans in the twelve months ended December 31, 2020. Of the five loans designated as TDR at December 31, 2019, three loans were classified as TDR due to changes in interest rates and payment terms, and two loans had a principal payment adjustment.

Note 5 - Portfolio Loans Receivable (continued)

Outstanding loan commitments were as follows:


Loan Commitments
	For the Year Ended December 31,
(in thousands)	2020		2019
Unused lines of credit
Commercial	$	15,973	$	13,754
Commercial real estate	32,398		26,407
Residential real estate	20,848		31,411
Home equity	118,843		114,999
Commercial and industrial	50,877		36,442
Credit Card	92,452		37,517
Personal	185		43
Construction commitments:
Residential real estate	—		—
Commercial real estate	—		—
	$	331,576	$	260,573

Commitments to originate residential loans held for sale	$	11,444	$	2,646

Letters of credit	$	5,102	$	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. Letters of credit are conditional commitments issued by us to guarantee the performance of a customer to a third party. In the event of nonperformance by the customer in accordance with the terms of the agreement with the third party, the Company would be required to fund the commitment.

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

As of December 31, 2020 and 2019, respectively, the Company had an allowance for off-balance-sheet credit risk of $1.8 million and $1.2 million, recorded in other liabilities on the consolidated balance sheet.

Note 5 - Portfolio Loans Receivable (continued)

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


Off-Balance Sheet Reserve

(in thousands)	2020		2019
Balance at beginning of period	$	1,226	$	1,053
Add: Provision	550		173
Add: Recoveries	—		—
Less: Charge-offs	—		—
Balance at end of period	$	1,776	$	1,226

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

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


Mortgage Loan Put-back Reserve
(in thousands)	2020		2019
Balance at beginning of period	$	576	$	501
Add: Provision	598		184
Add: Recoveries	—		—
Less: Charge-offs	(14)		(109)
Balance at end of period	$	1,160	$	576

Paycheck Protection Program

Loans and Leases Receivable Disclosure [Line Items]

SBA-PPP Loans

Pursuant to the CARES Act, the SBA-PPP provides forgivable loans to small businesses to enable them to maintain payroll, hire back employees who have been laid off, and cover applicable overhead. SBA-PPP loans have an interest rate of 1%, have 2 and 5 year terms, and carry a 100% guarantee of the SBA.

The allowance for loan losses for SBA-PPP loans was separately evaluated given the explicit government guarantee. This analysis, which incorporated historical experience with similar SBA guarantees and underwriting, concluded the likelihood of loss was remote and therefore no allowance for loan losses was assigned to these loans.

At December 31, 2020, SBA-PPP loans receivable, which totaled $204.9 million, are all rated as pass credits, not past due, nonaccrual, TDR, or otherwise impaired. Earned fees for the year are $2.8 million and unearned net fees associated with the SBA-PPP loans amounted to $3.9 million at December 31, 2020. There were no outstanding commitments to extend additional SBA-PPP loans at December 31, 2020.

Portfolio Loans Receivable

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Portfolio Loans Receivable

Major categories of portfolio loans are as follows:


Portfolio Loan Categories
	December 31,
(in thousands)	2020		2019
Real estate:
Residential	$	437,860	$	427,926
Commercial	392,550		348,091
Construction	224,904		198,702
Commercial	157,127		151,109
Credit card	102,186		45,526
Other consumer	1,649		1,285
	1,316,276		1,172,639
Deferred origination fees, net	(774)		(2,404)
Allowance for loan losses	(23,434)		(13,301)
Portfolio loans receivable, net	$	1,292,068	$	1,156,934

Note 5 - Portfolio Loans Receivable (continued)

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.

Note 5 - Portfolio Loans Receivable (continued)

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


Accretable Discounts on Loans Acquired
	December 31,
(in thousands)	2020		2019
Accretable discount at beginning of period	$	429	$	438
Accretion and payoff of loans	(208)		(9)
Accretable discount at end of period	$	221	$	429


Allowance for Loan Losses
(in thousands)			Provision for Loan Losses								Allowance for Loan Losses Ending Balance Evaluated for Impairment:				Outstanding Loan Balances Evaluated for Impairment:
December 31, 2020	Beginning Balance				Charge-Offs		Recoveries		Ending Balance		Individually		Collectively		Individually		Collectively
Real estate:
Residential	$	4,135	$	3,018	$	—	$	—	$	7,153	$	—	$	7,153	$	4,687	$	433,173
Commercial	3,572		3,214		—		—		6,786		—		6,786		2,358		390,192
Construction	2,668		2,216		(296)		7		4,595		—		4,595		1,736		223,168
Commercial	1,548		1,102		(233)		—		2,417		253		2,164		1,182		155,945
Credit card (1)	1,368		1,681		(637)		50		2,462		—		2,462		—		102,186
Other consumer (1)	10		11		—		—		21		—		21		—		1,649
	$	13,301	$	11,242	$	(1,166)	$	57	$	23,434	$	253	$	23,181	$	9,963	$	1,306,313

December 31, 2019
Real estate:
Residential	$	3,541	$	634	$	(40)	$	—	$	4,135	$	—	$	4,135	$	2,192	$	425,734
Commercial	3,003		556		—		13		3,572		—		3,572		1,433		346,658
Construction	2,093		575		—		—		2,668		—		2,668		—		198,702
Commercial	1,578		299		(331)		2		1,548		119		1,429		474		150,635
Credit card (1)	1,084		726		(461)		19		1,368		—		1,368		—		45,526
Other consumer (1)	9		1		—		—		10		—		10		—		1,285
	$	11,308	$	2,791	$	(832)	$	34	$	13,301	$	119	$	13,182	$	4,099	$	1,168,540

_______________

(1) Credit cards loans are collectively evaluated by past due status and as such are not individually risk rated.

Note 5 - Portfolio Loans Receivable (continued)

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


Portfolio Loans Past Due			Loans 90 or More Days Past Due		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 or More days Past Due		Nonaccrual Loans
	Loans 30-89 Days Past Due
(in thousands)
December 31, 2020
Real estate:
Residential	$	1,029	$	3,539	$	4,568	$	433,292	$	437,860	$	—	$	3,581
Commercial	36		2,583		2,619		389,931		392,550		225		2,358
Construction	1,444		442		1,886		223,018		224,904		—		1,886
Commercial	486		741		1,227		155,900		157,127		—		1,182
Credit card	13,811		6		13,817		88,369		102,186		6		—
Other consumer	—		—		—		1,649		1,649		—		—
	$	16,806	$	7,311	$	24,117	$	1,292,159	$	1,316,276	$	231	$	9,007

Acquired loans included above	$	36	$	565	$	601	$	4,675	$	5,276	$	225	$	381

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		39,992		45,526		8		—
Other consumer	—		—		—		1,285		1,285		—		—
	$	7,433	$	4,468	$	11,901	$	1,160,738	$	1,172,639	$	619	$	4,099

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

Note 5 - Portfolio Loans Receivable (continued)

Impaired loans also include acquired loans for which management has recorded a nonaccretable discount. Impaired loans as of December 31, 2020 and 2019 were as follows:


Impaired Portfolio Loans
	Unpaid Contractual Principal Balance		Recorded Investment with no Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment		Interest Recognized
(in thousands)
December 31, 2020
Real estate
Residential	$	3,960	$	3,726	$	—	$	3,726	$	—	$	3,982	$	136
Commercial	2,490		2,358		—		2,358		—		2,519		46
Construction	1,996		1,886		—		1,886		—		1,809		15
Commercial	1,344		791		391		1,182		253		1,826		58


	$	9,790	$	8,761	$	391	$	9,152	$	253	$	10,136	$	255

Acquired loans included above	$	548	$	381	$	—	$	381	$	—	$	555	$	3

December 31, 2019
Real estate
Residential	$	2,309	$	2,192	$	—	$	2,192	$	—	$	2,510	$	8
Commercial	1,477		1,433		—		1,433		—		1,620		18

Commercial	574		201		273		474		119		777		9


	$	4,360	$	3,826	$	273	$	4,099	$	119	$	4,907	$	35

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

There were $175 thousand and $481 thousand, respectively, of loans secured by one to four family residential properties in the process of foreclosure as of December 31, 2020 and 2019.

Credit quality indicators

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:

Note 5 - Portfolio Loans Receivable (continued)

Special Mention

Substandard

Doubtful

Note 5 - Portfolio Loans Receivable (continued)


Classified Loans
(in thousands)	Pass(1)		Special Mention		Substandard		Doubtful		Total
December 31, 2020
Real estate:
Residential	$	428,260	$	5,150	$	4,450	$	—	$	437,860
Commercial	383,311		6,881		2,358		—		392,550
Construction	220,057		1,112		3,735		—		224,904
Commercial	145,365		9,766		1,996		—		157,127
Credit card	102,186		—		—		—		102,186
Other consumer	1,649		—		—		—		1,649
Total	$	1,280,828	$	22,909	$	12,539	$	—	$	1,316,276

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	45,526		—		—		—		45,526
Other consumer	1,285		—		—		—		1,285
Total	$	1,156,665	$	10,850	$	5,124	$	—	$	1,172,639

________________________

(1) Pass includes loans graded exceptional, very good, good, satisfactory and pass/watch, in addition to credit card loans which are not individually graded.

Note 5 - Portfolio Loans Receivable (continued)


Troubled Debt Restructurings
	Number of Contracts	Recorded Investment
(dollars in thousands)		Performing		Nonperforming		Total
December 31, 2020
Real estate:
Residential	3	$	—	$	145	$	145


Commercial	2	—		294		294


Total	5	$	—	$	439	$	439

Acquired loans included above	3	$	—	$	145	$	145

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

Total	5	$	—	$	459	$	459

Acquired loans included above	3	$	—	$	145	$	145

Note 5 - Portfolio Loans Receivable (continued)

Outstanding loan commitments were as follows:


Loan Commitments
	For the Year Ended December 31,
(in thousands)	2020		2019
Unused lines of credit
Commercial	$	15,973	$	13,754
Commercial real estate	32,398		26,407
Residential real estate	20,848		31,411
Home equity	118,843		114,999
Commercial and industrial	50,877		36,442
Credit Card	92,452		37,517
Personal	185		43
Construction commitments:
Residential real estate	—		—
Commercial real estate	—		—
	$	331,576	$	260,573

Commitments to originate residential loans held for sale	$	11,444	$	2,646

Letters of credit	$	5,102	$	5,305

Note 5 - Portfolio Loans Receivable (continued)

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


Off-Balance Sheet Reserve

(in thousands)	2020		2019
Balance at beginning of period	$	1,226	$	1,053
Add: Provision	550		173
Add: Recoveries	—		—
Less: Charge-offs	—		—
Balance at end of period	$	1,776	$	1,226

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


Mortgage Loan Put-back Reserve
(in thousands)	2020		2019
Balance at beginning of period	$	576	$	501
Add: Provision	598		184
Add: Recoveries	—		—
Less: Charge-offs	(14)		(109)
Balance at end of period	$	1,160	$	576

Premises and Equipment

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Premises and Equipment

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


Premises and Equipment
(in thousands)	2020		2019
Leasehold improvements	$	1,694	$	1,688
Furniture and equipment	4,635		4,622
Vehicle	54		54
Software	2,518		2,517
Construction in progress	6		—
	8,907		8,881
Less: Accumulated depreciation and amortization	7,554		6,709
Premises and equipment	1,353		2,172
Net lease asset	3,111		3,920
Premises and equipment, net	$	4,464	$	6,092

Depreciation and amortization expense	$	844	$	1,113

Leases

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases

On January 1, 2019, the Company adopted ASU 2016-02, Leases, as further explained in Note 1 - Nature of Business and Basis of Presentation. The Company’s primary leasing activities relate to certain real estate leases entered into in support of the Company’s branch operations and back office operations. As of January 1, 2019, the Company had leased five of its full service branches and five other locations for corporate/administration activities, operations, and loan production. All property leases under lease agreements have been been designated as operating leases. The Company does not have leases designated as finance leases.

The Company determines if an arrangement is a lease at inception. Operating lease right-of-use (“ROU”) assets are included in premises and equipment, and operating lease liabilities are included as other liabilities in the consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The weighted average discount rate used was 2.23%. The operating lease ROU asset also includes any lease pre-payments. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which the Company has elected to account for separately as the non-lease component amounts are readily determinable under most leases.

As of December 31, 2020, the Company’s lease ROU assets and related lease liabilities were $3.1 million and $3.4 million, respectively, and have remaining terms ranging from 1 - 6 years, including extension options that the Company is reasonably certain will be exercised. As of December 31, 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)	December 31, 2020
Lease Right-of-Use Asset
Lease asset	5,399
Less: Accumulated amortization	(2,288)
Net lease asset	3,111

Lease Liability
Lease liability	$	5,577
Less: Accumulated amortization	(2,137)
Net lease liability	$	3,440

Note 7 - Leases (continued)

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


Lease Payment Obligations
(in thousands)	December 31, 2020
Amounts due in:
2021	$	1,408
2022	1,023
2023	777
2024	420

Total lease payments	$	3,628

Operating lease and rent expense was $1.6 million and $1.3 million for the years ended December 31, 2020 and 2019, respectively.

Derivative Financial Instruments

12 Months Ended

Dec. 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 measuring the fair value of the underlying asset, which is impacted by current interest rates and takes into consideration the probability that the rate lock commitments will close or will be funded.

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

Note 8 - Derivative Financial Instruments (continued)

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


Derivatives
(in thousands)	December 31, 2020		December 31, 2019
Notional amount of open forward sales agreements	$	38,000	$	61,000
Fair value of open forward delivery sales agreements	(179)		(125)
Notional amount of open mandatory delivery commitments	15,531		22,888
Fair value of open mandatory delivery commitments	179		122
Notional amount of interest rate lock commitments	34,827		32,365
Fair value of interest rate lock commitments	148		115

Interest Bearing Deposits

12 Months Ended

Dec. 31, 2020

Deposits [Abstract]

Interest Bearing Deposits

Interest-Bearing Deposits

Major categories of interest bearing deposits are as follows:


Interest-Bearing Deposits

(in thousands)	2020		2019
Interest-bearing demand accounts	$	257,126	$	174,166
Money market accounts	447,077		429,078
Savings	4,800		3,675
Certificates of deposit of $250,000 or more	134,752		115,311
Other time deposits	199,814		211,414
Total interest-bearing deposits	$	1,043,569	$	933,644

The aggregate amount of brokered certificates of deposit was $45.1 million and $88.8 million at December 31, 2020 and 2019, respectively. The aggregate amount of Certificate of Deposit Account Registry Service (“CDARS”) deposits was $10.7 million and $5.0 million at December 31, 2020 and 2019, respectively. As of December 31, 2020, the Company’s certificates of deposit from listing services amounted to $62.5 million or 3.8% of our deposits.

Certificates of deposit, as of December 31, 2020, mature as follows:


Maturities of Certificates of Deposit
(in thousands)
2021	$	237,623
2022	93,909
2023	1,915
2024	760
2025, and thereafter	359
	$	334,566

Securities Sold Under Agreements to Repurchase

12 Months Ended

Dec. 31, 2020

Disclosure of Repurchase Agreements [Abstract]

Securities Sold Under Agreements to Repurchase

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


Securities Sold Under Agreements to Repurchase
(dollars in thousands)	2020			2019
Average amount outstanding	$	—		$	1,287
Average rate paid during the year	—		%	1.75		%
Maximum amount outstanding at month end	$	—		$	3,400

Investment securities pledged to secure the underlying agreements at year end:
Amortized cost	$	—		$	—
Fair value	—			—

Borrowed Funds

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Borrowed Funds

As of December 31, 2020 and 2019, the Company was indebted as follows:


Borrowed Funds
	2020				2019
(dollars in thousands)	Balance		Interest		Balance		Interest
FHLB fixed rate advance due October 16, 2025	$	22,000	0.93	%	$	—	—	%
FHLB principal reducing advance due May 10, 2022	—		—		32,222		2.40

Total - FHLB advances	$	22,000			$	32,222


Junior subordinated debentures due June 15, 2036	$	2,062	2.09	%	$	2,062	3.76	%
Other subordinated notes due November 30, 2030	10,000		5.00		—		—
Other subordinated notes due December 1, 2025	—		—		13,500		6.95
FRB advances under the SBA-PPP Liquidity Facility	1,954		—		—		—
Less: Unamortized debt issuance costs	—				(139)
Total - Other borrowed funds	$	14,016			$	15,423

Federal Home Loan Bank Advances

The Federal Home Loan Bank fixed rate advance accrues interest on a daily basis and is paid semi-annually.

Junior subordinated debentures

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

Note 11 - Borrowed Funds (Continued)

The proceeds of the issuance of the Capital Securities and trust common securities were invested in the Company’s Floating Rate Junior Subordinated Deferrable Interest Debentures (the “Floating Rate Debentures”). The Floating Rate Debentures for the Trust will mature on June 15, 2036, which may be shortened if certain conditions are met (including the Company having received prior approval of the Board of Governors of the Federal Reserve System and any other required regulatory approvals). These Floating Rate Debentures, which are the only assets of the Trust, are subordinate and junior in right of payment to all present and future senior indebtedness (as defined in the Indenture dated June 15, 2006) of the Company. The Floating Rate Debentures for the Trust accrue interest at a floating rate equal to the three-month LIBOR plus 1.89%, payable quarterly. As of December 31, 2020 and 2019, the rate for the Trust was 2.09% and 3.76%, respectively. The quarterly distributions on the Capital Securities will be paid at the same rate that interest is paid on the Floating Rate Debentures.

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

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

Other subordinated notes

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

On November 30, 2020, the Company issued $10.0 million of subordinated notes. The notes mature on November 30, 2030 and are redeemable in whole or part on November 30, 2025. The notes bear interest at a fixed annual rate of 5.00% for the first five years, then adjust quarterly to an interest rate per annum equal to a benchmark rate, which is expected to be the three-month SOFR, plus 490 basis points. There were related debt issuance costs incurred totaling $50,000 which were fully expensed at the time of issuance. The Company used the proceeds from the offering to redeem the outstanding $13.5 million, 6.95% fixed-to-floating rate subordinated notes.

Note 11 - Borrowed Funds (Continued)

Available lines of credit

The Company has available lines of credit of $76.0 million with other correspondent banks. There were no outstanding line of credit balances at December 31, 2020 and December 31, 2019.

The Company may borrow up to 25% of its assets from the FHLB, based on collateral available to pledge to secure the borrowings. Borrowings from the FHLB are secured by a portion of the Company’s loan and/or investment portfolio. As of December 31, 2020 and 2019, the Company had pledged loans providing borrowing capacity of $222.0 million and $193.7 million, respectively. As of December 31, 2020 and 2019, the Company had pledged investment securities with a fair value of $1.2 million and $1.5 million, respectively, to the FHLB. As of December 31, 2020 and 2019, the Company had available borrowing capacity, net of advances and amounts pledged for letters of credit, from the FHLB of $201.2 million and $140.5 million, respectively.

As of December 31, 2020 and 2019, the Company had pledged commercial loans to the Federal Reserve Bank of Richmond to secure a borrowing capacity totaling $15.6 million and $12.5 million, respectively, under its discount window program. In addition, the Company had the ability to borrow from the SBA-PPP Liquidity Facility by pledging SBA-PPP loans. As of December 31, 2020 the company pledged $2.0 million under this facility and had the funds advanced. Additionally, there was $201.0 million of SBA-PPP loans remaining available to pledge as collateral to enable the Company to borrow under the program. l

The Company limits its certificate of deposit funding through financial networks to 15% of the Bank’s assets, or approximately $277.1 million and $209.5 million as of December 31, 2020 and 2019, respectively. Amounts outstanding were $45.1 million and $88.8 million as of December 31, 2020 and 2019, respectively.

Retirement Plan	12 Months Ended
Retirement Plan	Dec. 31, 2020
Retirement Benefits [Abstract]
Retirement Plan	Retirement PlanThe Company provides a defined contribution plan qualifying under Section 401(k) of the Internal Revenue Code to eligible employees. The Company contributes 3% of eligible compensation on behalf of all full‑time employees up to limits prescribed by the Internal Revenue Code. The Company’s contribution to the plan was $879 thousand in 2020 and $691 thousand in 2019.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

Related-Party Transactions

12 Months Ended

Dec. 31, 2020

Related-Party Transactions

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

Activity in related-party loans during 2020 and 2019 is shown below:


Related Party Loans
(in thousands)	2020		2019
Balance at beginning of year	$	22,112	$	13,221
Add: New loans	99		14,583
Less: Amounts collected	(2,936)		(5,692)

Balance at end of year	$	19,275	$	22,112

Note 13 - Related-Party Transactions (continued)

Deposits from officers and directors and their related interests were $148.4 million at December 31, 2020, and $141.3 million at December 31, 2019.

A director of the Company owns an interest in an entity from which the Company leases space for one of its Rockville, Maryland locations. Payments made in accordance with the lease were $76 thousand and $74 thousand in 2020 and 2019, respectively.

Company directors, or their related interests, held $3.3 million of the subordinated notes outstanding as of December 31, 2020. These notes hold a fixed rate of interest until November 30, 2025, after which it converted to variable rate.

Company directors, or their related interests, did not hold any participation loans from the Bank as of December 31, 2020 and held $171 thousand as of December 31, 2019. Company and Bank directors, or their related interests, held $121 thousand and $364 thousand of participation loans from Church Street Capital as of December 31, 2020 and 2019, respectively.

Income Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

The components of income tax expense are as follows:


Income Tax Expense
	For the Years Ended December 31,
(in thousands)	2020		2019
Current:
Federal	$	9,489	$	5,151
State	2,995		1,507
Total current expense	12,484		6,658
Deferred tax benefit	(3,170)		(839)
Total income tax expense	$	9,314	$	5,819

Note 14 - Income Taxes (continued)

The components of the net deferred tax asset at December 31, 2020 and 2019 are:


Net Deferred Tax Asset
(in thousands)	2020		2019
Deferred tax assets:
Allowance for loan and credit losses	$	6,666	$	3,977
Reserve for recourse on mortgage loans sold	308		158
Nonaccrual interest	18		19
Foreclosed real estate write-downs	22		3
Stock-based compensation	276		251
Long-term incentive program	302		266
Core deposit intangible	17		21
Lease liability net of right-of-use asset	87		—

Net operating loss carryforward	123		178
	7,819		4,873
Deferred tax liabilities:
Unrealized gains on investment securities available for sale	620		5

Unrealized gain on loans held for sale	67		72
Accumulated depreciation	190		355
Deferred casualty gain	1		1

	878		433
Net deferred tax asset before valuation allowance	6,941		4,440
Less: Valuation allowance	123		177
Net deferred tax asset	$	6,818	$	4,263

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


Reconciliation of Federal Tax Rate to the Effective Rate
	2020		2019
Statutory federal income tax rate	21.00	%	21.00	%
Increase (decrease) resulting from:
State income taxes, net of federal income tax benefit	5.40		6.02
Nondeductible expenses	0.49		0.73
Tax exempt income	(0.01)		(0.03)
Other	(0.37)		(2.10)
Effective Tax Rate	26.51	%	25.62	%

Deferred tax assets represent the future tax benefit of deductible differences and, if it is more likely than not that a tax asset will not be realized, a valuation allowance is required to reduce the net deferred tax assets to net realizable value. As of December 31, 2020, management has determined that it is more likely than not that the majority of the deferred tax asset from continuing operations will be realized. At December 31, 2020 and 2019, a valuation allowance of $123 thousand and $177 thousand was recognized, respectively, for a State of Maryland net operating loss carryforward that may not be realizable.

The Company does not have material uncertain tax positions and did not recognize any adjustments for unrecognized tax benefits. The Company remains subject to examination of income tax returns for the years ending after December 31, 2017 .

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Capital Standards

12 Months Ended

Dec. 31, 2020

Mortgage Banking [Abstract]

Capital Standards

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

Quantitative measures established and defined by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of Total, Tier 1 and Common Equity Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. As of December 31, 2020 and 2019, the capital levels of the Company and the Bank substantially exceeded all applicable capital adequacy requirements.

As of December 31, 2020 the most recent notification from the OCC has categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain ratios as set forth in the table. There have been no conditions or events since that notification that management believes have changed the Bank’s category.

The following table presents actual and required capital ratios as of December 31, 2020 and 2019 for the Bank under the Basel III Capital Rules. The minimum required capital amounts presented include the minimum required capital levels as of December 31, 2020 and 2019 based on the phase-in provisions of the Basel III Capital Rules. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. Based on recent changes to the Federal Reserve’s definition of a “Small Bank Holding Company” that increased the threshold to $3 billion in assets, the Company is not currently subject to separate minimum capital measurements. At such time as the Company reaches the $3 billion asset level, it will again be subject to capital measurements independent of the Bank. For comparison purposes, the Company’s ratios are presented in the following table as well, all of which would have exceeded the “well-capitalized” level had the Company been subject to separate capital minimums.

Note 15 - Capital Standards (continued)


Regulatory Capital
	Actual				Minimum Capital Adequacy				To Be Well Capitalized				Full Phase In of Basel III
(Dollar amounts in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2020
The Company
Tier 1 leverage ratio (to average assets)	$	159,656	8.78	%	$	72,770	4.00	%	N/A		N/A		$	90,962	5.00	%
Tier 1 capital (to risk-weighted assets)	159,656		13.10	%	73,100		6.00	%	N/A		N/A		97,467		8.00	%
Common equity tier 1 capital ratio (to risk-weighted assets)	157,594		12.94	%	$	54,825	4.50	%	N/A		N/A		79,192		6.50	%
Total capital ratio (to risk-weighted assets)	185,008		15.19	%	$	97,467	8.00	%	N/A		N/A		121,834		10.00	%

The Bank
Tier 1 leverage ratio (to average assets)	$	135,527	7.44	%	$	72,770	4.00	%	$	90,962	5.00	%	$	90,962	5.00	%
Tier 1 capital (to risk-weighted assets)	135,527		12.06	%	71,731		6.00	%	95,642		8.00	%	95,642		8.00	%
Common equity tier 1 capital ratio (to risk-weighted assets)	135,527		12.06	%	53,798		4.50	%	77,709		6.50	%	77,709		6.50	%
Total capital ratio (to risk-weighted assets)	150,593		13.40	%	95,642		8.00	%	119,552		10.00	%	119,552		10.00	%

December 31, 2019
The Company
Tier 1 leverage ratio (to average assets)	$	135,380	9.96	%	$	54,397	4.00	%	N/A		N/A		$	67,996	5.00	%
Tier 1 capital (to risk-weighted assets)	135,380		12.31	%	66,011		6.00	%	N/A		N/A		88,015		8.00	%
Common equity tier 1 capital ratio (to risk-weighted assets)	133,318		12.12	%	49,508		4.50	%	N/A		N/A		71,512		6.50	%
Total capital ratio (to risk-weighted assets)	149,142		13.56	%	88,015		8.00	%	N/A		N/A		110,018		10.00	%

The Bank
Tier 1 leverage ratio (to average assets)	$	114,613	8.65	%	$	53,005	4.00	%	$	66,256	5.00	%	$	66,256	5.00	%
Tier 1 capital (to risk-weighted assets)	114,613		10.73	%	64,093		6.00	%	85,458		8.00	%	85,458		8.00	%
Common equity tier 1 capital ratio (to risk-weighted assets)	114,613		10.73	%	48,070		4.50	%	69,435		6.50	%	69,435		6.50	%
Total capital ratio (to risk-weighted assets)	127,976		11.98	%	85,458		8.00	%	106,822		10.00	%	106,822		10.00	%

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

Stock-Based Compensation

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

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

The expense recognition of employee stock option and restricted stock awards resulted in net expense of approximately $1.0 million and $858 thousand during the years ended December 31, 2020 and 2019, respectively.

Stock options:

The Company currently has two incentive compensation plans with outstanding stock options, the 2002 Stock Option Plan and the 2017 Stock and Incentive Compensation Plan (“the Plan”). Only the Plan, which authorizes the use of stock options, stock appreciation rights, restricted stock and/or restricted stock, is available to grant options and shares to employees and directors. At inception the Plan allowed for up to 1,120,000 shares of common stock to be issued. As of December 31, 2020, there are 144,049 shares available for future grant. Shares of common stock related to any unexercised or unvested award granted under the Plan that terminate or expire, or are subsequently forfeited or cancelled for any reason, become available for re-grant under the Plan. Option prices are equal to or greater than the estimated fair value of the common stock at the date of grant. Options outstanding vest over a four-year period, whereby 25% of the options become exercisable on each anniversary of the grant date.

Information with respect to options outstanding during the years ended December 31, 2020 and 2019 is as follows:


Stock Options Outstanding
	2020			2019
	Shares	Weighted Average Exercise Price		Shares	Weighted Average Exercise Price
Outstanding at beginning of year	1,308,047	$	11.00	1,431,860	$	9.38
Add: Granted	205,100	13.95		249,300	14.29
Less: Exercised	(142,901)	7.72		(221,710)	6.88
Less: Retired on exercise	(137,334)	7.90		(141,955)	6.90
Less: Expired/cancelled/forfeited	(63,499)	11.60		(9,448)	10.89
Outstanding at end of year	1,169,413	$	12.21	1,308,047	$	11.00
Exercisable at end of year	567,593	$	11.13	592,782	$	9.40

The weighted average fair value of options granted during the years ended December 31, 2020 and 2019, was $7.37 and $4.30, respectively.

Note 16 - Stock-Based Compensation (continued)

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


Stock Option Summary
	Weighted Average Exercise Price		Average Remaining Life (years)	Outstanding Shares	Exercisable Shares
December 31, 2020
	$	8.50	1.00	172,976	172,976
	10.70		4.30	2,500	—
	11.13		4.30	500	—
	11.38		3.00	306,437	152,953
	11.41		4.00	20,000	5,000
	12.38		2.00	238,100	177,450
	12.80		2.80	7,000	3,500
	13.89		5.00	177,100	—
	14.38		4.10	5,000	—
	14.54		4.00	219,800	55,714
	14.89		4.00	20,000	—
Total outstanding options	12.21		3.00	1,169,413	567,593
Intrinsic value on December 31, 2020				2,164,598	1,620,892

December 31, 2019
	$	7.50	1.0	236,212	231,212
	8.50		2.0	202,435	142,885
	11.38		4.0	346,500	86,635
	11.41		4.0	20,000	—
	12.38		3.0	266,600	130,300
	12.80		3.8	7,000	1,750
	14.54		5.0	229,300	—
Total outstanding options	11.00		3.1	1,308,047	592,782
Intrinsic value on December 31, 2019				5,089,032	3,256,491

The aggregate intrinsic value as presented in the preceding tables is the difference between the estimated fair value of the stock as of December 31, 2020 and 2019, and the exercise price of the option multiplied by the number of options outstanding. Stock options with exercise prices greater than the estimated fair value of the stock are not included in this calculation.

Total unrecognized compensation expense related to stock options to be recognized over the next five years was $0.8 million and $1.7 million at December 31, 2020 and 2019, respectively.

The intrinsic value of stock options exercised was $0.9 million and $1.8 million during the years ended December 31, 2020 and 2019, respectively.

The weighted average fair value of options granted during 2020 and 2019 were estimated using the

Note 16 - Stock-Based Compensation (continued)

Black-Scholes option-pricing model with the following weighted average assumptions:


Stock Option Pricing Assumptions
	2020	2019
Dividend yield	0.00%	0.00%
Risk free interest rate	0.43%	1.75%
Expected volatility	64.46%	34.79%
Expected life in years	5	5

Restricted stock:

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

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

Note 16 - Stock-Based Compensation (continued)

Nonvested restricted stock for the years ended December 31, 2020 and 2019 is summarized in the following table.


Restricted Stock Summary
	2020			2019
	Shares	Weighted Average Grant-Date Fair Value		Shares	Weighted Average Grant-Date Fair Value
Nonvested at beginning of year	19,500	$	12.38	38,000	$	10.32
Add: Granted	16,713	14.36		—	—
Less: Vested	(5,500)	12.38		(18,500)	8.16
Less: Forfeited	—	—		—	—
Nonvested at end of year	30,713	$	13.46	19,500	$	12.38

The vesting schedule of restricted shares as of December 31, 2020 is as follows:


Restricted Stock Vesting Schedule
Year						Shares
2021						9,678
2022						9,678
2023						7,178
2024						4,179
						30,713

There was $121 thousand and $176 thousand of total unrecognized compensation expense related to nonvested restricted stock at December 31, 2020 and 2019, respectively.

Parent Company Financial Information

12 Months Ended

Dec. 31, 2020

Condensed Financial Information Disclosure [Abstract]

Parent Company Financial Information

The balance sheets as of December 31, 2020 and 2019 and statements of income and cash flows for the years then ended, for Capital Bancorp, Inc. (Parent only) are presented below.


Parent Company Only Balance Sheets

(in thousands)	2020		2019
Assets
Cash and cash equivalents	$	2,777	$	2,391
Investment in Bank	137,244		114,626
Investment in Church Street Capital	4,161		3,755
Investment in Trust	62		62
Loans receivable, net of allowance for loan losses of $258 at both December 31, 2020 and 2019, respectively	26,999		28,044
Accrued interest receivable	300		98
Due from subsidiaries	—		16
Prepaid income taxes	—		9
Deferred income taxes	86		65

Total assets	$	171,629	$	149,066

Liabilities and Stockholders’ Equity
Borrowed funds	$	12,062	$	15,423
Accrued interest payable	43		82
Other liabilities	213		230
Total liabilities	12,318		15,735
Stockholders’ equity
Common stock	138		139
Additional paid-in capital	50,602		51,561
Retained earnings	106,854		81,618
Accumulated other comprehensive income	1,717		13
Total stockholders’ equity	159,311		133,331
Total liabilities and stockholders’ equity	$	171,629	$	149,066

Note 17 - Parent Company Financial Information (continued)


Parent Company Only Statements of Income

(in thousands)	2020		2019
Interest and dividend income	$	1,662	$	1,650
Dividend from Bank	5,500		3,500
Total interest and dividend revenue	7,162		5,150
Interest expense	1,095		1,054
Net interest income	6,067		4,096
Provision for loan losses	—		50
Net interest income after provision for loan losses	6,067		4,046
Noninterest income	3		5
Noninterest expenses	334		180
Income before income taxes	5,736		3,871
Income tax expense	50		78
Income before undistributed net income of subsidiaries	5,686		3,793
Undistributed net income of subsidiaries	20,137		13,102
Net income	$	25,823	$	16,895

Note 17 - Parent Company Financial Information (continued)


Parent Company Only Statements of Cash Flows
(in thousands)	2020		2019
Cash flows from operating activities
Net Income	25,823		16,895
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	—		50
Undistributed net income of subsidiaries	(20,137)		(13,102)
Decrease in receivable from Bank	16		38
Stock-based compensation expense	983		795
Director and employee compensation paid in Company stock	268		301
Deferred income tax benefit	(21)		(47)
Amortization of debt issuance costs	139		30
Changes in assets and liabilities:
Accrued interest receivable	(202)		8
Prepaid income taxes	9		81
Other assets	—		(663)
Accrued interest payable	(39)		1
Other liabilities	(17)		195
Net cash provided by operating activities	6,822		4,582

Cash flows from investing activities
Net increase in loans receivable	1,045		(1,062)
Capital contributions to subsidiaries	(1,183)		(5,120)
Net cash provided by investing activities	(138)		(6,182)

Cash flows from financing activities
Repayment of debt	(3,500)		—
Repurchase of common stock	(3,720)		(371)
Proceeds from exercise of stock options	922		594


Net cash provided used in financing activities	(6,298)		223

Net increase (decrease) in cash and cash equivalents	386		(1,377)

Cash and cash equivalents, beginning of year	2,391		3,768

Cash and cash equivalents, end of year	$	2,777	$	2,391

Fair Value

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value

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

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

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

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

Fair value measurements on a recurring basis

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

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

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

Note 18 - Fair Value (continued)

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


Fair Value of Financial Instruments
(in thousands)	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
December 31, 2020
Investment securities available for sale
U.S. government-sponsored enterprises	$	10,881	$	—	$	10,881	$	—
Municipal	10,927		—		10,927		—
Corporate	5,767		—		5,767		—
Mortgage-backed securities	72,212		—		72,212		—
	$	99,787	$	—	$	99,787	$	—
Loans held for sale	$	107,154	$	—	$	107,154	$	—
Derivative assets	$	327	$	—	$	327	$	—
Derivative liabilities	$	179	$	—	$	179	$	—

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)	December 31, 2020		December 31, 2019

Aggregate fair value	$	107,154	$	71,030
Contractual principal	99,362		$	67,118
Difference	$	7,792	$	3,912

Note 18 - Fair Value (continued)

As of December 31, 2020 and December 31, 2019, the Company elected to account for loans held for sale at fair value to eliminate the mismatch that would occur by recording changes in market value on derivative instruments used to hedge loans held for sale while carrying the loans at the lower of cost or market.

Fair value measurements on a nonrecurring basis

Impaired loans - The Company has measured impairment generally based on the fair value of the loan's collateral and discounted cash flow analysis. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values. As of December 31, 2020 and December 31, 2019, the fair values consist of loan balances of $9.2 million and $4.1 million, with valuation allowances of $253 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.


Fair Value of Impaired Loans and Foreclosed Real Estate
(in thousands)
	December 31, 2020		December 31, 2019
Impaired loans
Level 1 Inputs	$	—	$	—
Level 2 Inputs	—		—
Level 3 Inputs	8,899		3,980
Total	$	8,899	$	3,980

Foreclosed real estate
Level 1 Inputs	—		—
Level 2 Inputs	—		—
Level 3 Inputs	3,326		2,384
Total	$	3,326	$	2,384

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

Inputs

Valuation Technique

Unobservable Inputs

General Range of Inputs

Impaired Loans

Appraised Value/Discounted Cash Flows

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

0 - 25%

Foreclosed Real Estate

Appraised Value/Comparable Sales

Discounts to appraisals for estimated holding and/or selling costs

0 - 25%

Fair value of financial instruments

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

Note 18 - Fair Value (continued)

The information used to determine fair value is highly subjective and judgmental in nature and, therefore, the results may not be precise. Subjective factors include, among other things, estimates of cash flows, risk characteristics, credit quality, and interest rates, all of which are subject to change. Since the fair value is estimated as of the balance sheet date, the amounts that will actually be realized or paid upon settlement or maturity on these various instruments could be significantly different.

As of December 31, 2020, the technique used by the Company to estimate the exit price of the loan portfolio consists of similar procedures to those used as of December 31, 2019, but with added emphasis on both illiquidity risk and credit risk not captured by the previously applied entry price notion. The fair value of the Company’s loan portfolio has always included a credit risk assumption in the determination of the fair value of its loans. This credit risk assumption is intended to approximate the fair value that a market participant would realize in a hypothetical orderly transaction. The Company’s loan portfolio is initially fair valued using a segmented approach. The Company divides its loan portfolio into the following categories: variable rate loans, impaired loans, and all other loans. The results are then adjusted to account for credit risk as described above. However, under the new guidance, the Company believes a further credit risk discount must be applied through the use of a discounted cash flow model to compensate for illiquidity risk, based on certain assumptions included within the discounted cash flow model, primarily the use of discount rates that better capture inherent credit risk over the lifetime of a loan. This consideration of enhanced credit risk provides an estimated exit price for the Company’s loan portfolio.

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

The fair value of cash and cash equivalents, interest bearing deposits at other financial institutions, federal funds sold and restricted investments is the carrying amount. Restricted stock includes equity of the Federal Reserve and other banker’s banks.

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

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

The fair value of certificates of deposit in other financial institutions is estimated based on interest rates currently offered for deposits of similar remaining maturities.

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

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

Note 18 - Fair Value (continued)

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


Fair Value of Financial Assets and Liabilities
	December 31, 2020				December 31, 2019
(in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Level 1
Cash and due from banks	$	18,456	$	18,456	$	10,530	$	10,530
Interest bearing deposits at other financial institutions	126,081		126,081		102,447		102,447
Federal funds sold	2,373		2,373		1,847		1,847
Restricted investments	3,958		3,958		3,966		3,966
Level 3
Loans receivable, net	$	1,493,086	$	1,499,073	$	1,156,934	$	1,155,922

Financial liabilities
Level 1
Noninterest-bearing deposits	$	608,559	$	608,559	$	291,777	$	291,777

Level 3
Interest-bearing deposits	$	1,043,569	$	1,048,728	$	933,644	$	934,349
FHLB advances and other borrowed funds	36,016		37,067		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

12 Months Ended

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


Segments

(in thousands)	Commercial Bank		CBHL		OpenSky®		Corporate		Eliminations		Consolidated
Interest income	$	66,373	$	2,611	$	25,907	$	2,481	$	(121)	$	97,251
Interest expense	10,396		1,691		—		1,216		(121)		13,182
Net interest income	55,977		920		25,907		1,265		—		84,069
Provision for loan losses	9,461		—		1,681		100		—		11,242
Noninterest income	822		43,250		16,966		23		—		61,061
Noninterest expense(1)	35,790		27,530		35,013		418		—		98,751
Net income before taxes	$	11,548	$	16,640	$	6,179	$	770	$	—	$	35,137

Total assets	$	1,624,280	$	107,507	$	113,244	$	178,569	$	(147,006)	$	1,876,593

_______________

(1)Noninterest expense includes $10.9 million in commissions expense in CBHL’s segment and $24.5 million in data processing in Open Sky’s segment.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 21
-Subparagraph (a)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Paragraph 32
-Subparagraph (f)
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Subparagraph (e)
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 32
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Litigation	12 Months Ended
Litigation	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Litigation	LitigationThe Company is involved in legal proceedings occurring in the ordinary course of business. The aggregate effect of these, in management’s opinion, would not be material to the results of operations or financial condition of the Company.

Quarterly Results of Operations (unaudited)

12 Months Ended

Dec. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results of Operations (unaudited)

The following table presents condensed unaudited information relating to quarterly periods in 2020 and 2019.


Quarterly Results of Operations
(in thousands)
	2020								2019
	Dec 31		Sept 30		Jun 30		Mar 31		Dec 31		Sept 30		Jun 30		Mar 31
Interest Income	$	28,318	$	25,189	$	22,000	$	21,744	$	21,219	$	22,354	$	20,289	$	18,318
Interest Expense	2,599		3,150		3,376		4,057		4,339		4,170		3,758		3,574
Net Interest Income	25,719		22,039		18,624		17,687		16,880		18,184		16,531		14,744
Provision for Loan Losses	2,033		3,500		3,300		2,409		921		1,071		677		121
Noninterest Income	19,437		21,146		13,899		6,579		8,453		7,221		5,927		4,092
Noninterest Expense	30,086		28,119		22,703		17,843		17,757		18,228		16,210		14,330
Income Before Provision for Income Taxes	13,037		11,566		6,520		4,014		6,654		6,106		5,571		4,385
Provision for Income Taxes	3,347		3,128		1,759		1,080		1,581		1,625		1,548		1,066
Net Income	$	9,690	$	8,438	$	4,761	$	2,934	$	5,073	$	4,481	$	4,023	$	3,319

Basic earnings per common share	$	0.71	$	0.61	$	0.34	$	0.21	$	0.37	$	0.33	$	0.30	$	0.24
Diluted earnings per common share	$	0.71	$	0.61	$	0.34	$	0.21	$	0.36	$	0.32	$	0.29	$	0.24

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsSubsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date.

Nature of Business and Basis of Presentation (Policies)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Nature of operations

Nature of Business

Basis of presentation

Basis of PresentationThe accompanying consolidated financial statements include the activity of the Company and its wholly-owned subsidiaries, the Bank and Church Street Capital. All intercompany transactions have been eliminated in consolidation. The Company reports its activities as a four business segments: commercial banking; mortgage lending; credit cards; and corporate activities. In determining the appropriateness of segment definition, the Company considers components of the business about which financial information is available and regularly evaluated relative to resource allocation and performance assessment. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and conform to general practices within the banking industry.

Cash and cash equivalents

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.

Portfolio loans and the allowance for loan losses

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

Outstanding portfolio loans deferred due to COVID-19, which decreased by 78.9 percent from $144.0 million at June 30, 2020 to $30.5 million at December 31, 2020, are shown in the table below:


Loan Modifications (1)
(dollars in millions)
	December 31, 2020					June 30, 2020
			Deferred Loans			Deferred Loans
Sector	Total Loans Outstanding		Balance		# of Loans Deferred	Balance		# of Loans Deferred
Accommodation & Food Services	$	89.1	$	14.7	16	$	42.6	36
Real Estate and Rental Leasing	508.7		5.5		10	45.6		67
Other Services Including Private Households	174.2		1.1		3	17.3		36
Educational Services	20.9		—		—	9.8		6
Construction	260.1		—		—	4.2		6
Professional, Scientific, and Technical Services	86.3		1.4		3	5.0		11
Arts, Entertainment & Recreation	39.0		0.7		2	5.0		9
Retail Trade	24.6		0.3		1	3.0		8
Healthcare & Social Assistance	88.5		0.9		1	4.7		11
Wholesale Trade	13.6		—		—	0.9		1
All other (1)	216.1		5.9		7	5.9		13
Total	$	1,521.1	$	30.5	43	$	144.0	204
_______________ (1) Excludes the minor modifications and deferrals made for OpenSky® secured card customers.

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

Premises and equipment

Leases

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

Premises and equipment

Leases

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

The Company accounts for our existing operating leases consistent with prior guidance except for the incremental balance sheet recognition for leases.

Derivative Financial Instruments

Fair Value Measurements

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

management judgment may be necessary to estimate fair value. In developing our fair value estimates, we strive to maximize the use of observable inputs and minimize the use of unobservable inputs.

Income Taxes

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

Earnings per share

Earnings per shareEarnings per share is computed by dividing net income available to common stockholders by the weighted average number of shares outstanding. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding, adjusted for the dilutive effect of stock options and restricted stock using the treasury stock method.

Comprehensive income

Recently issued accounting pronouncements

Recently issued accounting pronouncements:

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

Reclassifications

Reclassifications:

Nature of Business and Basis of Presentation (Tables)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

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


Earnings Per Share	For the Years Ended December 31,
	2020					2019
(dollars in thousands, except per share information)	Income		Weighted Average Shares	Per Share Amount		Income		Weighted Average Shares	Per Share Amount
Basic EPS
Net income available to common stockholders	$	25,823	13,793,256	$	1.87	$	16,895	13,733,131	$	1.23
Effect of dilutive securities	—		6,920			—		235,454
Dilutive EPS per common share	$	25,823	13,800,176	$	1.87	$	16,895	13,968,585	$	1.21

Schedule of Accumulated Other Comprehensive Income (Loss)


Comprehensive Income	For the Years Ended December 31,
(in thousands)	2020		2019
Unrealized gains on securities available for sale	$	2,337	$	18
Deferred tax expense	(620)		(5)




Total accumulated comprehensive income	$	1,717	$	13

Schedule Of Outstanding Portfolio Loans Deferred

Outstanding portfolio loans deferred due to COVID-19, which decreased by 78.9 percent from $144.0 million at June 30, 2020 to $30.5 million at December 31, 2020, are shown in the table below:


Loan Modifications (1)
(dollars in millions)
	December 31, 2020					June 30, 2020
			Deferred Loans			Deferred Loans
Sector	Total Loans Outstanding		Balance		# of Loans Deferred	Balance		# of Loans Deferred
Accommodation & Food Services	$	89.1	$	14.7	16	$	42.6	36
Real Estate and Rental Leasing	508.7		5.5		10	45.6		67
Other Services Including Private Households	174.2		1.1		3	17.3		36
Educational Services	20.9		—		—	9.8		6
Construction	260.1		—		—	4.2		6
Professional, Scientific, and Technical Services	86.3		1.4		3	5.0		11
Arts, Entertainment & Recreation	39.0		0.7		2	5.0		9
Retail Trade	24.6		0.3		1	3.0		8
Healthcare & Social Assistance	88.5		0.9		1	4.7		11
Wholesale Trade	13.6		—		—	0.9		1
All other (1)	216.1		5.9		7	5.9		13
Total	$	1,521.1	$	30.5	43	$	144.0	204
_______________ (1) Excludes the minor modifications and deferrals made for OpenSky® secured card customers.

Investment Securities (Tables)

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Unrealized Gain (Loss) on Investments

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


Investment Securities Available for Sale
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
(in thousands)
December 31, 2020
Asset-backed securities	$	10,839	$	42	$	—	$	10,881
Municipal	10,836		108		(17)		10,927
Corporate	5,759		30		(22)		5,767
Mortgage-backed securities	70,016		2,208		(12)		72,212
	$	97,450	$	2,388	$	(51)	$	99,787

December 31, 2019
U.S. government-sponsored agencies	$	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 December 31, 2020 and 2019 are as follows:


Investment Securities Unrealized Losses
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(in thousands)
December 31, 2020
Asset-backed securities	$	—	$	—	$	—	$	—	$	—	$	—
Municipal	3,151		(17)		—		—		3,151		(17)
Corporate	1,994		(6)		244		(16)		2,238		(22)
Mortgage-backed securities	2,410		(12)		—		—		2,410		(12)
	$	7,555	$	(35)	$	244	$	(16)	$	7,799	$	(51)

December 31, 2019
U.S. government-sponsored agencies	$	—	$	—	$	999	$	(1)	$	999	$	(1)
Municipal	—		—		—		—		—		—
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 December 31, 2020 and 2019 is shown below:


Pledged Securities
	For the Years Ended December 31,
	2020				2019
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value

Federal Home Loan Bank advances	1,142		1,189		1,508		1,522
	$	1,142	$	1,189	$	1,508	$	1,522

Investments Classified by Contractual Maturity Date


Investment Securities - Contractual Maturities
	For the Years Ended December 31,
	2020				2019
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	—	$	—	$	1,542	$	1,518
Over one to five years	—		—		—		—
Over five to ten years	5,500		5,524		2,000		2,046
Over ten years	21,934		22,051		515		528
Mortgage-backed securities(1)	70,016		72,212		56,754		56,736
	$	97,450	$	99,787	$	60,811	$	60,828

_____

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

Portfolio Loans Receivable (Tables)

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Schedule of Loans Receivable

Major categories of portfolio loans are as follows:


Portfolio Loan Categories
	December 31,
(in thousands)	2020		2019
Real estate:
Residential	$	437,860	$	427,926
Commercial	392,550		348,091
Construction	224,904		198,702
Commercial	157,127		151,109
Credit card	102,186		45,526
Other consumer	1,649		1,285
	1,316,276		1,172,639
Deferred origination fees, net	(774)		(2,404)
Allowance for loan losses	(23,434)		(13,301)
Portfolio loans receivable, net	$	1,292,068	$	1,156,934

Schedule Of Activity In Accretable Discounts On Loans Acquired

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


Accretable Discounts on Loans Acquired
	December 31,
(in thousands)	2020		2019
Accretable discount at beginning of period	$	429	$	438
Accretion and payoff of loans	(208)		(9)
Accretable discount at end of period	$	221	$	429

Allowance for Credit Losses on Loans Receivables

The following tables present, by class and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans as of December 31, 2020 and 2019.


Allowance for Loan Losses
(in thousands)			Provision for Loan Losses								Allowance for Loan Losses Ending Balance Evaluated for Impairment:				Outstanding Loan Balances Evaluated for Impairment:
December 31, 2020	Beginning Balance				Charge-Offs		Recoveries		Ending Balance		Individually		Collectively		Individually		Collectively
Real estate:
Residential	$	4,135	$	3,018	$	—	$	—	$	7,153	$	—	$	7,153	$	4,687	$	433,173
Commercial	3,572		3,214		—		—		6,786		—		6,786		2,358		390,192
Construction	2,668		2,216		(296)		7		4,595		—		4,595		1,736		223,168
Commercial	1,548		1,102		(233)		—		2,417		253		2,164		1,182		155,945
Credit card (1)	1,368		1,681		(637)		50		2,462		—		2,462		—		102,186
Other consumer (1)	10		11		—		—		21		—		21		—		1,649
	$	13,301	$	11,242	$	(1,166)	$	57	$	23,434	$	253	$	23,181	$	9,963	$	1,306,313

December 31, 2019
Real estate:
Residential	$	3,541	$	634	$	(40)	$	—	$	4,135	$	—	$	4,135	$	2,192	$	425,734
Commercial	3,003		556		—		13		3,572		—		3,572		1,433		346,658
Construction	2,093		575		—		—		2,668		—		2,668		—		198,702
Commercial	1,578		299		(331)		2		1,548		119		1,429		474		150,635
Credit card (1)	1,084		726		(461)		19		1,368		—		1,368		—		45,526
Other consumer (1)	9		1		—		—		10		—		10		—		1,285
	$	11,308	$	2,791	$	(832)	$	34	$	13,301	$	119	$	13,182	$	4,099	$	1,168,540

_______________

(1) Credit cards loans are collectively evaluated by past due status and as such are not individually risk rated.

Past Due Loans Receivables

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


Portfolio Loans Past Due			Loans 90 or More Days Past Due		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 or More days Past Due		Nonaccrual Loans
	Loans 30-89 Days Past Due
(in thousands)
December 31, 2020
Real estate:
Residential	$	1,029	$	3,539	$	4,568	$	433,292	$	437,860	$	—	$	3,581
Commercial	36		2,583		2,619		389,931		392,550		225		2,358
Construction	1,444		442		1,886		223,018		224,904		—		1,886
Commercial	486		741		1,227		155,900		157,127		—		1,182
Credit card	13,811		6		13,817		88,369		102,186		6		—
Other consumer	—		—		—		1,649		1,649		—		—
	$	16,806	$	7,311	$	24,117	$	1,292,159	$	1,316,276	$	231	$	9,007

Acquired loans included above	$	36	$	565	$	601	$	4,675	$	5,276	$	225	$	381

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		39,992		45,526		8		—
Other consumer	—		—		—		1,285		1,285		—		—
	$	7,433	$	4,468	$	11,901	$	1,160,738	$	1,172,639	$	619	$	4,099

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

Impaired Loans Receivables

Impaired loans also include acquired loans for which management has recorded a nonaccretable discount. Impaired loans as of December 31, 2020 and 2019 were as follows:


Impaired Portfolio Loans
	Unpaid Contractual Principal Balance		Recorded Investment with no Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment		Interest Recognized
(in thousands)
December 31, 2020
Real estate
Residential	$	3,960	$	3,726	$	—	$	3,726	$	—	$	3,982	$	136
Commercial	2,490		2,358		—		2,358		—		2,519		46
Construction	1,996		1,886		—		1,886		—		1,809		15
Commercial	1,344		791		391		1,182		253		1,826		58


	$	9,790	$	8,761	$	391	$	9,152	$	253	$	10,136	$	255

Acquired loans included above	$	548	$	381	$	—	$	381	$	—	$	555	$	3

December 31, 2019
Real estate
Residential	$	2,309	$	2,192	$	—	$	2,192	$	—	$	2,510	$	8
Commercial	1,477		1,433		—		1,433		—		1,620		18

Commercial	574		201		273		474		119		777		9


	$	4,360	$	3,826	$	273	$	4,099	$	119	$	4,907	$	35

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

Loans Receivables Credit Quality Indicators

Note 5 - Portfolio Loans Receivable (continued)


Classified Loans
(in thousands)	Pass(1)		Special Mention		Substandard		Doubtful		Total
December 31, 2020
Real estate:
Residential	$	428,260	$	5,150	$	4,450	$	—	$	437,860
Commercial	383,311		6,881		2,358		—		392,550
Construction	220,057		1,112		3,735		—		224,904
Commercial	145,365		9,766		1,996		—		157,127
Credit card	102,186		—		—		—		102,186
Other consumer	1,649		—		—		—		1,649
Total	$	1,280,828	$	22,909	$	12,539	$	—	$	1,316,276

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	45,526		—		—		—		45,526
Other consumer	1,285		—		—		—		1,285
Total	$	1,156,665	$	10,850	$	5,124	$	—	$	1,172,639

________________________

(1) Pass includes loans graded exceptional, very good, good, satisfactory and pass/watch, in addition to credit card loans which are not individually graded.

Troubled Debt Restructurings on Loans Receivables

The status of TDRs is as follows:


Troubled Debt Restructurings
	Number of Contracts	Recorded Investment
(dollars in thousands)		Performing		Nonperforming		Total
December 31, 2020
Real estate:
Residential	3	$	—	$	145	$	145


Commercial	2	—		294		294


Total	5	$	—	$	439	$	439

Acquired loans included above	3	$	—	$	145	$	145

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

Total	5	$	—	$	459	$	459

Acquired loans included above	3	$	—	$	145	$	145

Schedule Of Outstanding Loan Commitments

Outstanding loan commitments were as follows:


Loan Commitments
	For the Year Ended December 31,
(in thousands)	2020		2019
Unused lines of credit
Commercial	$	15,973	$	13,754
Commercial real estate	32,398		26,407
Residential real estate	20,848		31,411
Home equity	118,843		114,999
Commercial and industrial	50,877		36,442
Credit Card	92,452		37,517
Personal	185		43
Construction commitments:
Residential real estate	—		—
Commercial real estate	—		—
	$	331,576	$	260,573

Commitments to originate residential loans held for sale	$	11,444	$	2,646

Letters of credit	$	5,102	$	5,305

Schedule of Credit Losses for Financing Receivables

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


Off-Balance Sheet Reserve

(in thousands)	2020		2019
Balance at beginning of period	$	1,226	$	1,053
Add: Provision	550		173
Add: Recoveries	—		—
Less: Charge-offs	—		—
Balance at end of period	$	1,776	$	1,226

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


Mortgage Loan Put-back Reserve
(in thousands)	2020		2019
Balance at beginning of period	$	576	$	501
Add: Provision	598		184
Add: Recoveries	—		—
Less: Charge-offs	(14)		(109)
Balance at end of period	$	1,160	$	576

Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

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


Premises and Equipment
(in thousands)	2020		2019
Leasehold improvements	$	1,694	$	1,688
Furniture and equipment	4,635		4,622
Vehicle	54		54
Software	2,518		2,517
Construction in progress	6		—
	8,907		8,881
Less: Accumulated depreciation and amortization	7,554		6,709
Premises and equipment	1,353		2,172
Net lease asset	3,111		3,920
Premises and equipment, net	$	4,464	$	6,092

Depreciation and amortization expense	$	844	$	1,113

Leases (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Assets and Liabilities, Lessee

The Company’s lease information is summarized as follows:


Leases
(in thousands)	December 31, 2020
Lease Right-of-Use Asset
Lease asset	5,399
Less: Accumulated amortization	(2,288)
Net lease asset	3,111

Lease Liability
Lease liability	$	5,577
Less: Accumulated amortization	(2,137)
Net lease liability	$	3,440

Lessee, Operating Lease, Liability, Maturity

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


Lease Payment Obligations
(in thousands)	December 31, 2020
Amounts due in:
2021	$	1,408
2022	1,023
2023	777
2024	420

Total lease payments	$	3,628

Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 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)	December 31, 2020		December 31, 2019
Notional amount of open forward sales agreements	$	38,000	$	61,000
Fair value of open forward delivery sales agreements	(179)		(125)
Notional amount of open mandatory delivery commitments	15,531		22,888
Fair value of open mandatory delivery commitments	179		122
Notional amount of interest rate lock commitments	34,827		32,365
Fair value of interest rate lock commitments	148		115

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624163-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 815
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5580258-113959

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=121590274&loc=d3e41620-113959

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5579245-113959

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=121590274&loc=d3e41638-113959

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=121590274&loc=d3e41678-113959

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121590274&loc=d3e41641-113959

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624171-113959

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5579240-113959

+ Details

Interest Bearing Deposits (Tables)

12 Months Ended

Dec. 31, 2020

Deposits [Abstract]

Deposit Liabilities, Type

Major categories of interest bearing deposits are as follows:


Interest-Bearing Deposits

(in thousands)	2020		2019
Interest-bearing demand accounts	$	257,126	$	174,166
Money market accounts	447,077		429,078
Savings	4,800		3,675
Certificates of deposit of $250,000 or more	134,752		115,311
Other time deposits	199,814		211,414
Total interest-bearing deposits	$	1,043,569	$	933,644

Time Deposit Maturities

Certificates of deposit, as of December 31, 2020, mature as follows:


Maturities of Certificates of Deposit
(in thousands)
2021	$	237,623
2022	93,909
2023	1,915
2024	760
2025, and thereafter	359
	$	334,566

Securities Sold Under Agreements to Repurchase (Tables)

12 Months Ended

Dec. 31, 2020

Disclosure of Repurchase Agreements [Abstract]

Schedule Of Securities Sold Under Agreements To Repurchase

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


Securities Sold Under Agreements to Repurchase
(dollars in thousands)	2020			2019
Average amount outstanding	$	—		$	1,287
Average rate paid during the year	—		%	1.75		%
Maximum amount outstanding at month end	$	—		$	3,400

Investment securities pledged to secure the underlying agreements at year end:
Amortized cost	$	—		$	—
Fair value	—			—

Borrowed Funds (Tables)

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Schedule of Debt

As of December 31, 2020 and 2019, the Company was indebted as follows:


Borrowed Funds
	2020				2019
(dollars in thousands)	Balance		Interest		Balance		Interest
FHLB fixed rate advance due October 16, 2025	$	22,000	0.93	%	$	—	—	%
FHLB principal reducing advance due May 10, 2022	—		—		32,222		2.40

Total - FHLB advances	$	22,000			$	32,222


Junior subordinated debentures due June 15, 2036	$	2,062	2.09	%	$	2,062	3.76	%
Other subordinated notes due November 30, 2030	10,000		5.00		—		—
Other subordinated notes due December 1, 2025	—		—		13,500		6.95
FRB advances under the SBA-PPP Liquidity Facility	1,954		—		—		—
Less: Unamortized debt issuance costs	—				(139)
Total - Other borrowed funds	$	14,016			$	15,423

Related-Party Transactions (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Related Party Transactions

Activity in related-party loans during 2020 and 2019 is shown below:


Related Party Loans
(in thousands)	2020		2019
Balance at beginning of year	$	22,112	$	13,221
Add: New loans	99		14,583
Less: Amounts collected	(2,936)		(5,692)

Balance at end of year	$	19,275	$	22,112

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense are as follows:


Income Tax Expense
	For the Years Ended December 31,
(in thousands)	2020		2019
Current:
Federal	$	9,489	$	5,151
State	2,995		1,507
Total current expense	12,484		6,658
Deferred tax benefit	(3,170)		(839)
Total income tax expense	$	9,314	$	5,819

Schedule of Deferred Tax Assets and Liabilities

The components of the net deferred tax asset at December 31, 2020 and 2019 are:


Net Deferred Tax Asset
(in thousands)	2020		2019
Deferred tax assets:
Allowance for loan and credit losses	$	6,666	$	3,977
Reserve for recourse on mortgage loans sold	308		158
Nonaccrual interest	18		19
Foreclosed real estate write-downs	22		3
Stock-based compensation	276		251
Long-term incentive program	302		266
Core deposit intangible	17		21
Lease liability net of right-of-use asset	87		—

Net operating loss carryforward	123		178
	7,819		4,873
Deferred tax liabilities:
Unrealized gains on investment securities available for sale	620		5

Unrealized gain on loans held for sale	67		72
Accumulated depreciation	190		355
Deferred casualty gain	1		1

	878		433
Net deferred tax asset before valuation allowance	6,941		4,440
Less: Valuation allowance	123		177
Net deferred tax asset	$	6,818	$	4,263

Schedule of Effective Income Tax Rate Reconciliation

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


Reconciliation of Federal Tax Rate to the Effective Rate
	2020		2019
Statutory federal income tax rate	21.00	%	21.00	%
Increase (decrease) resulting from:
State income taxes, net of federal income tax benefit	5.40		6.02
Nondeductible expenses	0.49		0.73
Tax exempt income	(0.01)		(0.03)
Other	(0.37)		(2.10)
Effective Tax Rate	26.51	%	25.62	%

Capital Standards (Tables)

12 Months Ended

Dec. 31, 2020

Mortgage Banking [Abstract]

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations

Note 15 - Capital Standards (continued)


Regulatory Capital
	Actual				Minimum Capital Adequacy				To Be Well Capitalized				Full Phase In of Basel III
(Dollar amounts in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2020
The Company
Tier 1 leverage ratio (to average assets)	$	159,656	8.78	%	$	72,770	4.00	%	N/A		N/A		$	90,962	5.00	%
Tier 1 capital (to risk-weighted assets)	159,656		13.10	%	73,100		6.00	%	N/A		N/A		97,467		8.00	%
Common equity tier 1 capital ratio (to risk-weighted assets)	157,594		12.94	%	$	54,825	4.50	%	N/A		N/A		79,192		6.50	%
Total capital ratio (to risk-weighted assets)	185,008		15.19	%	$	97,467	8.00	%	N/A		N/A		121,834		10.00	%

The Bank
Tier 1 leverage ratio (to average assets)	$	135,527	7.44	%	$	72,770	4.00	%	$	90,962	5.00	%	$	90,962	5.00	%
Tier 1 capital (to risk-weighted assets)	135,527		12.06	%	71,731		6.00	%	95,642		8.00	%	95,642		8.00	%
Common equity tier 1 capital ratio (to risk-weighted assets)	135,527		12.06	%	53,798		4.50	%	77,709		6.50	%	77,709		6.50	%
Total capital ratio (to risk-weighted assets)	150,593		13.40	%	95,642		8.00	%	119,552		10.00	%	119,552		10.00	%

December 31, 2019
The Company
Tier 1 leverage ratio (to average assets)	$	135,380	9.96	%	$	54,397	4.00	%	N/A		N/A		$	67,996	5.00	%
Tier 1 capital (to risk-weighted assets)	135,380		12.31	%	66,011		6.00	%	N/A		N/A		88,015		8.00	%
Common equity tier 1 capital ratio (to risk-weighted assets)	133,318		12.12	%	49,508		4.50	%	N/A		N/A		71,512		6.50	%
Total capital ratio (to risk-weighted assets)	149,142		13.56	%	88,015		8.00	%	N/A		N/A		110,018		10.00	%

The Bank
Tier 1 leverage ratio (to average assets)	$	114,613	8.65	%	$	53,005	4.00	%	$	66,256	5.00	%	$	66,256	5.00	%
Tier 1 capital (to risk-weighted assets)	114,613		10.73	%	64,093		6.00	%	85,458		8.00	%	85,458		8.00	%
Common equity tier 1 capital ratio (to risk-weighted assets)	114,613		10.73	%	48,070		4.50	%	69,435		6.50	%	69,435		6.50	%
Total capital ratio (to risk-weighted assets)	127,976		11.98	%	85,458		8.00	%	106,822		10.00	%	106,822		10.00	%

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Share-based Compensation, Stock Options, Activity

Information with respect to options outstanding during the years ended December 31, 2020 and 2019 is as follows:


Stock Options Outstanding
	2020			2019
	Shares	Weighted Average Exercise Price		Shares	Weighted Average Exercise Price
Outstanding at beginning of year	1,308,047	$	11.00	1,431,860	$	9.38
Add: Granted	205,100	13.95		249,300	14.29
Less: Exercised	(142,901)	7.72		(221,710)	6.88
Less: Retired on exercise	(137,334)	7.90		(141,955)	6.90
Less: Expired/cancelled/forfeited	(63,499)	11.60		(9,448)	10.89
Outstanding at end of year	1,169,413	$	12.21	1,308,047	$	11.00
Exercisable at end of year	567,593	$	11.13	592,782	$	9.40

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

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


Stock Option Summary
	Weighted Average Exercise Price		Average Remaining Life (years)	Outstanding Shares	Exercisable Shares
December 31, 2020
	$	8.50	1.00	172,976	172,976
	10.70		4.30	2,500	—
	11.13		4.30	500	—
	11.38		3.00	306,437	152,953
	11.41		4.00	20,000	5,000
	12.38		2.00	238,100	177,450
	12.80		2.80	7,000	3,500
	13.89		5.00	177,100	—
	14.38		4.10	5,000	—
	14.54		4.00	219,800	55,714
	14.89		4.00	20,000	—
Total outstanding options	12.21		3.00	1,169,413	567,593
Intrinsic value on December 31, 2020				2,164,598	1,620,892

December 31, 2019
	$	7.50	1.0	236,212	231,212
	8.50		2.0	202,435	142,885
	11.38		4.0	346,500	86,635
	11.41		4.0	20,000	—
	12.38		3.0	266,600	130,300
	12.80		3.8	7,000	1,750
	14.54		5.0	229,300	—
Total outstanding options	11.00		3.1	1,308,047	592,782
Intrinsic value on December 31, 2019				5,089,032	3,256,491

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

The weighted average fair value of options granted during 2020 and 2019 were estimated using the

Note 16 - Stock-Based Compensation (continued)

Black-Scholes option-pricing model with the following weighted average assumptions:


Stock Option Pricing Assumptions
	2020	2019
Dividend yield	0.00%	0.00%
Risk free interest rate	0.43%	1.75%
Expected volatility	64.46%	34.79%
Expected life in years	5	5

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

Nonvested restricted stock for the years ended December 31, 2020 and 2019 is summarized in the following table.


Restricted Stock Summary
	2020			2019
	Shares	Weighted Average Grant-Date Fair Value		Shares	Weighted Average Grant-Date Fair Value
Nonvested at beginning of year	19,500	$	12.38	38,000	$	10.32
Add: Granted	16,713	14.36		—	—
Less: Vested	(5,500)	12.38		(18,500)	8.16
Less: Forfeited	—	—		—	—
Nonvested at end of year	30,713	$	13.46	19,500	$	12.38

Share Based Compensation, Restricted Stock, Vesting Schedule

The vesting schedule of restricted shares as of December 31, 2020 is as follows:


Restricted Stock Vesting Schedule
Year						Shares
2021						9,678
2022						9,678
2023						7,178
2024						4,179
						30,713

Parent Company Financial Information (Tables)

12 Months Ended

Dec. 31, 2020

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Statements

The balance sheets as of December 31, 2020 and 2019 and statements of income and cash flows for the years then ended, for Capital Bancorp, Inc. (Parent only) are presented below.


Parent Company Only Balance Sheets

(in thousands)	2020		2019
Assets
Cash and cash equivalents	$	2,777	$	2,391
Investment in Bank	137,244		114,626
Investment in Church Street Capital	4,161		3,755
Investment in Trust	62		62
Loans receivable, net of allowance for loan losses of $258 at both December 31, 2020 and 2019, respectively	26,999		28,044
Accrued interest receivable	300		98
Due from subsidiaries	—		16
Prepaid income taxes	—		9
Deferred income taxes	86		65

Total assets	$	171,629	$	149,066

Liabilities and Stockholders’ Equity
Borrowed funds	$	12,062	$	15,423
Accrued interest payable	43		82
Other liabilities	213		230
Total liabilities	12,318		15,735
Stockholders’ equity
Common stock	138		139
Additional paid-in capital	50,602		51,561
Retained earnings	106,854		81,618
Accumulated other comprehensive income	1,717		13
Total stockholders’ equity	159,311		133,331
Total liabilities and stockholders’ equity	$	171,629	$	149,066

Note 17 - Parent Company Financial Information (continued)


Parent Company Only Statements of Income

(in thousands)	2020		2019
Interest and dividend income	$	1,662	$	1,650
Dividend from Bank	5,500		3,500
Total interest and dividend revenue	7,162		5,150
Interest expense	1,095		1,054
Net interest income	6,067		4,096
Provision for loan losses	—		50
Net interest income after provision for loan losses	6,067		4,046
Noninterest income	3		5
Noninterest expenses	334		180
Income before income taxes	5,736		3,871
Income tax expense	50		78
Income before undistributed net income of subsidiaries	5,686		3,793
Undistributed net income of subsidiaries	20,137		13,102
Net income	$	25,823	$	16,895

Note 17 - Parent Company Financial Information (continued)


Parent Company Only Statements of Cash Flows
(in thousands)	2020		2019
Cash flows from operating activities
Net Income	25,823		16,895
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	—		50
Undistributed net income of subsidiaries	(20,137)		(13,102)
Decrease in receivable from Bank	16		38
Stock-based compensation expense	983		795
Director and employee compensation paid in Company stock	268		301
Deferred income tax benefit	(21)		(47)
Amortization of debt issuance costs	139		30
Changes in assets and liabilities:
Accrued interest receivable	(202)		8
Prepaid income taxes	9		81
Other assets	—		(663)
Accrued interest payable	(39)		1
Other liabilities	(17)		195
Net cash provided by operating activities	6,822		4,582

Cash flows from investing activities
Net increase in loans receivable	1,045		(1,062)
Capital contributions to subsidiaries	(1,183)		(5,120)
Net cash provided by investing activities	(138)		(6,182)

Cash flows from financing activities
Repayment of debt	(3,500)		—
Repurchase of common stock	(3,720)		(371)
Proceeds from exercise of stock options	922		594


Net cash provided used in financing activities	(6,298)		223

Net increase (decrease) in cash and cash equivalents	386		(1,377)

Cash and cash equivalents, beginning of year	2,391		3,768

Cash and cash equivalents, end of year	$	2,777	$	2,391

Fair Value (Tables)

12 Months Ended

Dec. 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 December 31, 2020 and December 31, 2019 as follows:


Fair Value of Financial Instruments
(in thousands)	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
December 31, 2020
Investment securities available for sale
U.S. government-sponsored enterprises	$	10,881	$	—	$	10,881	$	—
Municipal	10,927		—		10,927		—
Corporate	5,767		—		5,767		—
Mortgage-backed securities	72,212		—		72,212		—
	$	99,787	$	—	$	99,787	$	—
Loans held for sale	$	107,154	$	—	$	107,154	$	—
Derivative assets	$	327	$	—	$	327	$	—
Derivative liabilities	$	179	$	—	$	179	$	—

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)	December 31, 2020		December 31, 2019

Aggregate fair value	$	107,154	$	71,030
Contractual principal	99,362		$	67,118
Difference	$	7,792	$	3,912

Fair Value Measurements, Nonrecurring


Fair Value of Impaired Loans and Foreclosed Real Estate
(in thousands)
	December 31, 2020		December 31, 2019
Impaired loans
Level 1 Inputs	$	—	$	—
Level 2 Inputs	—		—
Level 3 Inputs	8,899		3,980
Total	$	8,899	$	3,980

Foreclosed real estate
Level 1 Inputs	—		—
Level 2 Inputs	—		—
Level 3 Inputs	3,326		2,384
Total	$	3,326	$	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 December 31, 2020 and 2019:

Inputs

Valuation Technique

Unobservable Inputs

General Range of Inputs

Impaired Loans

Appraised Value/Discounted Cash Flows

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

0 - 25%

Foreclosed Real Estate

Appraised Value/Comparable Sales

Discounts to appraisals for estimated holding and/or selling costs

0 - 25%

Fair Value Measurements, Recurring and Nonrecurring

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


Fair Value of Financial Assets and Liabilities
	December 31, 2020				December 31, 2019
(in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Level 1
Cash and due from banks	$	18,456	$	18,456	$	10,530	$	10,530
Interest bearing deposits at other financial institutions	126,081		126,081		102,447		102,447
Federal funds sold	2,373		2,373		1,847		1,847
Restricted investments	3,958		3,958		3,966		3,966
Level 3
Loans receivable, net	$	1,493,086	$	1,499,073	$	1,156,934	$	1,155,922

Financial liabilities
Level 1
Noninterest-bearing deposits	$	608,559	$	608,559	$	291,777	$	291,777

Level 3
Interest-bearing deposits	$	1,043,569	$	1,048,728	$	933,644	$	934,349
FHLB advances and other borrowed funds	36,016		37,067		47,645		47,678

Segments Segments (Tables)

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

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


Segments

(in thousands)	Commercial Bank		CBHL		OpenSky®		Corporate		Eliminations		Consolidated
Interest income	$	66,373	$	2,611	$	25,907	$	2,481	$	(121)	$	97,251
Interest expense	10,396		1,691		—		1,216		(121)		13,182
Net interest income	55,977		920		25,907		1,265		—		84,069
Provision for loan losses	9,461		—		1,681		100		—		11,242
Noninterest income	822		43,250		16,966		23		—		61,061
Noninterest expense(1)	35,790		27,530		35,013		418		—		98,751
Net income before taxes	$	11,548	$	16,640	$	6,179	$	770	$	—	$	35,137

Total assets	$	1,624,280	$	107,507	$	113,244	$	178,569	$	(147,006)	$	1,876,593

_______________

(1)Noninterest expense includes $10.9 million in commissions expense in CBHL’s segment and $24.5 million in data processing in Open Sky’s segment.

Quarterly Results of Operations (unaudited) (Tables)

12 Months Ended

Dec. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information

The following table presents condensed unaudited information relating to quarterly periods in 2020 and 2019.


Quarterly Results of Operations
(in thousands)
	2020								2019
	Dec 31		Sept 30		Jun 30		Mar 31		Dec 31		Sept 30		Jun 30		Mar 31
Interest Income	$	28,318	$	25,189	$	22,000	$	21,744	$	21,219	$	22,354	$	20,289	$	18,318
Interest Expense	2,599		3,150		3,376		4,057		4,339		4,170		3,758		3,574
Net Interest Income	25,719		22,039		18,624		17,687		16,880		18,184		16,531		14,744
Provision for Loan Losses	2,033		3,500		3,300		2,409		921		1,071		677		121
Noninterest Income	19,437		21,146		13,899		6,579		8,453		7,221		5,927		4,092
Noninterest Expense	30,086		28,119		22,703		17,843		17,757		18,228		16,210		14,330
Income Before Provision for Income Taxes	13,037		11,566		6,520		4,014		6,654		6,106		5,571		4,385
Provision for Income Taxes	3,347		3,128		1,759		1,080		1,581		1,625		1,548		1,066
Net Income	$	9,690	$	8,438	$	4,761	$	2,934	$	5,073	$	4,481	$	4,023	$	3,319

Basic earnings per common share	$	0.71	$	0.61	$	0.34	$	0.21	$	0.37	$	0.33	$	0.30	$	0.24
Diluted earnings per common share	$	0.71	$	0.61	$	0.34	$	0.21	$	0.36	$	0.32	$	0.29	$	0.24

Nature of Business and Basis of Presentation - Additional Information (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) segment $ / shares	Dec. 31, 2019 USD ($) $ / shares	Jan. 01, 2019 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of reportable business segments \| segment	4
Common stock, par value (in dollars per share) \| $ / shares	$ 0.01	$ 0.01
Lease asset	$ 5,399
Lease liability	5,577
Adjustment to retained earnings	$ (106,854)	$ (81,618)
Accounting Standards Update 2016-02
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Lease asset			$ 5,200
Lease liability			5,400
Accounting Standards Update 2016-02 \| Cumulative Effect, Period of Adoption, Adjustment
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reclassification of deferred rent			146
Adjustment to retained earnings			$ 54
Minimum \| Premises And Equipment
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Useful lives	2 years
Maximum \| Premises And Equipment
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Useful lives	7 years

Nature of Business and Basis of Presentation - Loan Deferral (Details) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2020 USD ($) loan	Dec. 31, 2020 USD ($) loan contract	Dec. 31, 2019 contract
Financing Receivable, Modifications [Line Items]
Decrease in deferred loans, percent		78.90%
Deferred loans balance	$ 144.0	$ 30.5
Number of Contracts \| contract		5	5
Total Loans Outstanding		$ 1,521.1
Loan Deferral Due To COVID-19 \| Payment Deferral
Financing Receivable, Modifications [Line Items]
Deferred loans balance	$ 144.0	$ 30.5
Number of Contracts \| loan	204	43
Accommodation & Food Services
Financing Receivable, Modifications [Line Items]
Total Loans Outstanding		$ 89.1
Accommodation & Food Services \| Loan Deferral Due To COVID-19 \| Payment Deferral
Financing Receivable, Modifications [Line Items]
Deferred loans balance	$ 42.6	$ 14.7
Number of Contracts \| loan	36	16
Real Estate and Rental Leasing
Financing Receivable, Modifications [Line Items]
Total Loans Outstanding		$ 508.7
Real Estate and Rental Leasing \| Loan Deferral Due To COVID-19 \| Payment Deferral
Financing Receivable, Modifications [Line Items]
Deferred loans balance	$ 45.6	$ 5.5
Number of Contracts \| loan	67	10
Other Services Including Private Households
Financing Receivable, Modifications [Line Items]
Total Loans Outstanding		$ 174.2
Other Services Including Private Households \| Loan Deferral Due To COVID-19 \| Payment Deferral
Financing Receivable, Modifications [Line Items]
Deferred loans balance	$ 17.3	$ 1.1
Number of Contracts \| loan	36	3
Educational Services
Financing Receivable, Modifications [Line Items]
Total Loans Outstanding		$ 20.9
Educational Services \| Loan Deferral Due To COVID-19 \| Payment Deferral
Financing Receivable, Modifications [Line Items]
Deferred loans balance	$ 9.8	$ 0.0
Number of Contracts \| loan	6	0
Construction
Financing Receivable, Modifications [Line Items]
Total Loans Outstanding		$ 260.1
Construction \| Loan Deferral Due To COVID-19 \| Payment Deferral
Financing Receivable, Modifications [Line Items]
Deferred loans balance	$ 4.2	$ 0.0
Number of Contracts \| loan	6	0
Professional, Scientific, and Technical Services
Financing Receivable, Modifications [Line Items]
Total Loans Outstanding		$ 86.3
Professional, Scientific, and Technical Services \| Loan Deferral Due To COVID-19 \| Payment Deferral
Financing Receivable, Modifications [Line Items]
Deferred loans balance	$ 5.0	$ 1.4
Number of Contracts \| loan	11	3
Arts, Entertainment & Recreation
Financing Receivable, Modifications [Line Items]
Total Loans Outstanding		$ 39.0
Arts, Entertainment & Recreation \| Loan Deferral Due To COVID-19 \| Payment Deferral
Financing Receivable, Modifications [Line Items]
Deferred loans balance	$ 5.0	$ 0.7
Number of Contracts \| loan	9	2
Retail Trade
Financing Receivable, Modifications [Line Items]
Total Loans Outstanding		$ 24.6
Retail Trade \| Loan Deferral Due To COVID-19 \| Payment Deferral
Financing Receivable, Modifications [Line Items]
Deferred loans balance	$ 3.0	$ 0.3
Number of Contracts \| loan	8	1
Healthcare & Social Assistance
Financing Receivable, Modifications [Line Items]
Total Loans Outstanding		$ 88.5
Healthcare & Social Assistance \| Loan Deferral Due To COVID-19 \| Payment Deferral
Financing Receivable, Modifications [Line Items]
Deferred loans balance	$ 4.7	$ 0.9
Number of Contracts \| loan	11	1
Wholesale Trade
Financing Receivable, Modifications [Line Items]
Total Loans Outstanding		$ 13.6
Wholesale Trade \| Loan Deferral Due To COVID-19 \| Payment Deferral
Financing Receivable, Modifications [Line Items]
Deferred loans balance	$ 0.9	$ 0.0
Number of Contracts \| loan	1	0
All Other
Financing Receivable, Modifications [Line Items]
Total Loans Outstanding		$ 216.1
All Other \| Loan Deferral Due To COVID-19 \| Payment Deferral
Financing Receivable, Modifications [Line Items]
Deferred loans balance	$ 5.9	$ 5.9
Number of Contracts \| loan	13	7

Nature of Business and Basis of Presentation - Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Basic EPS
Net income									$ 25,823	$ 16,895
Weighted average number of shares outstanding, basic (in shares)									13,793,256	13,733,131
Basic earnings per share (in dollars per share)	$ 0.71	$ 0.61	$ 0.34	$ 0.21	$ 0.37	$ 0.33	$ 0.30	$ 0.24	$ 1.87	$ 1.23
Effect of dilutive securities (in shares)									6,920	235,454
Weighted average number of shares outstanding, diluted (in shares)									13,800,176	13,968,585
Diluted earnings per share (in dollars per share)	$ 0.71	$ 0.61	$ 0.34	$ 0.21	$ 0.36	$ 0.32	$ 0.29	$ 0.24	$ 1.87	$ 1.21
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)									504,861	7,628

Nature of Business and Basis of Presentation - Comprehensive Income (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated comprehensive income	$ 1,717	$ 13
Accumulated Net Investment Gain (Loss) Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before tax	2,337	18
Deferred tax benefit (expense)	(620)	(5)
Total accumulated comprehensive income	$ 1,717	$ 13

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

Nature of Business and Basis of Presentation - New Accounting Pronouncements (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease liability	$ 5,577
Lease asset	5,399
Retained earnings (accumulated deficit)	$ 106,854	$ 81,618
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease liability			$ 5,400
Lease asset			$ 5,200

Investment Securities - Amortized cost to Estimated Fair Value (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 97,450	$ 60,811
Unrealized Gains	2,388	176
Unrealized Losses	(51)	(159)
Fair Value	99,787	60,828
Proceeds from sale of securities available for sale	965	3,280
Gain on sale of investment securities available for sale	20
Loss on sale of investment securities available for sale		26
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	10,839
Unrealized Gains	42
Unrealized Losses	0
Fair Value	10,881
U.S. government-sponsored enterprises
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		1,000
Unrealized Gains		0
Unrealized Losses		(1)
Fair Value		999
Municipal
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	10,836	515
Unrealized Gains	108	13
Unrealized Losses	(17)	0
Fair Value	10,927	528
Corporate
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	5,759	2,542
Unrealized Gains	30	46
Unrealized Losses	(22)	(23)
Fair Value	5,767	2,565
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	70,016	56,754
Unrealized Gains	2,208	117
Unrealized Losses	(12)	(135)
Fair Value	$ 72,212	$ 56,736

Investment Securities - Unrealized Losses (Details) $ in Thousands	Dec. 31, 2020 USD ($) security	Dec. 31, 2019 USD ($)
Debt Securities, Available-for-sale [Line Items]
AFS, Less than 12 Months, Fair Value	$ 7,555	$ 21,487
AFS,12 Months or Longer, Fair Value	244	6,764
AFS,Total, Fair Value	7,799	28,251
AFS, Less than 12 months, Unrealized Losses	(35)	(78)
AFS, 12 months or longer, Unrealized Losses	(16)	(81)
AFS, Total, Unrealized Losses	(51)	(159)
U.S. government-sponsored enterprises
Debt Securities, Available-for-sale [Line Items]
AFS, Less than 12 Months, Fair Value		0
AFS,12 Months or Longer, Fair Value		999
AFS,Total, Fair Value		999
AFS, Less than 12 months, Unrealized Losses		0
AFS, 12 months or longer, Unrealized Losses		(1)
AFS, Total, Unrealized Losses		(1)
Municipal
Debt Securities, Available-for-sale [Line Items]
AFS, Less than 12 Months, Fair Value	3,151	0
AFS,12 Months or Longer, Fair Value	0	0
AFS,Total, Fair Value	3,151	0
AFS, Less than 12 months, Unrealized Losses	(17)	0
AFS, 12 months or longer, Unrealized Losses	0	0
AFS, Total, Unrealized Losses	(17)	0
Corporate
Debt Securities, Available-for-sale [Line Items]
AFS, Less than 12 Months, Fair Value	1,994	0
AFS,12 Months or Longer, Fair Value	244	519
AFS,Total, Fair Value	2,238	519
AFS, Less than 12 months, Unrealized Losses	(6)	0
AFS, 12 months or longer, Unrealized Losses	(16)	(23)
AFS, Total, Unrealized Losses	$ (22)	(23)
Number of securities in a loss position for greater than twelve months \| security	1
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
AFS, Less than 12 Months, Fair Value	$ 2,410	21,487
AFS,12 Months or Longer, Fair Value	0	5,246
AFS,Total, Fair Value	2,410	26,733
AFS, Less than 12 months, Unrealized Losses	(12)	(78)
AFS, 12 months or longer, Unrealized Losses	0	(57)
AFS, Total, Unrealized Losses	(12)	$ (135)
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
AFS, Less than 12 Months, Fair Value	0
AFS,12 Months or Longer, Fair Value	0
AFS,Total, Fair Value	0
AFS, Less than 12 months, Unrealized Losses	0
AFS, 12 months or longer, Unrealized Losses	0
AFS, Total, Unrealized Losses	$ 0

Investment Securities - Pledged Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Amortized Cost
Assets Sold under Agreements to Repurchase [Line Items]
Securities pledged	$ 1,142	$ 1,508
Fair Value
Assets Sold under Agreements to Repurchase [Line Items]
Securities pledged	1,189	1,522
Federal Home Loan Bank advances \| Amortized Cost
Assets Sold under Agreements to Repurchase [Line Items]
Securities pledged	1,142	1,508
Federal Home Loan Bank advances \| Fair Value
Assets Sold under Agreements to Repurchase [Line Items]
Securities pledged	$ 1,189	$ 1,522

Investment Securities - by Maturity Dates (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Amortized Cost
AFS Debt Maturities, Within one year, Amortized Cost	$ 0	$ 1,542
AFS Debt Maturities, Over one to five years, Amortized Cost	0	0
AFS Debt Maturities, Over five to ten years, Amortized Cost	5,500	2,000
AFS Debt Maturities, Over ten years, Amortized Cost	21,934	515
Amortized Cost	97,450	60,811
Fair Value
AFS Debt Maturities, Within one year, Fair Value	0	1,518
AFS Debt Maturities, Over one to five years, Fair Value	0	0
AFS Debt Maturities, Over five to ten years, Fair Value	5,524	2,046
AFS Debt Maturities, Over ten years, Fair Value	22,051	528
Fair Value	99,787	60,828
Mortgage-backed securities
Amortized Cost
Amortized Cost	70,016	56,754
Fair Value
Fair Value	$ 72,212	$ 56,736

SBA-PPP Loans (Details) - USD ($) $ in Thousands	12 Months Ended
SBA-PPP Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	$ 1,316,276	$ 1,172,639
Commercial
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	157,127	$ 151,109
Commercial \| Paycheck Protection Program
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	204,900
Earned fees	2,800
Unearned net fees	$ (3,900)

Portfolio Loans Receivable - Classification of Loans (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	$ 1,316,276	$ 1,172,639
Deferred origination fees, net	(774)	(2,404)
Allowance for loan losses	(23,434)	(13,301)		$ (11,308)
Portfolio loans receivable, net	1,292,068	1,156,934
Residential \| Real estate:
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	437,860	427,926
Allowance for loan losses	(7,153)	(4,135)	$ (3,541)
Commercial
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	157,127	151,109
Allowance for loan losses	(2,417)	(1,548)	(1,578)
Commercial \| Real estate:
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	392,550	348,091
Allowance for loan losses	$ (6,786)	(3,572)	(3,003)
Fixed interest rate term	5 years
Initial commitment term	10 years
Amortization period	25 years
Commercial \| Paycheck Protection Program
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	$ 204,900
Construction \| Real estate:
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	224,904	198,702
Allowance for loan losses	(4,595)	(2,668)	(2,093)
Consumer \| Credit card
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	102,186	45,526
Allowance for loan losses	(2,462)	(1,368)	(1,084)
Consumer \| Credit card \| Savings Deposits
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	$ 98,500	43,300
Repayment history used for scoring model	6 months
Consumer \| Other consumer
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, gross	$ 1,649	1,285
Allowance for loan losses	$ (21)	$ (10)	$ (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	$ 200,300
Percent of real estate portfolio	15.20%
Owner Occupied Real Estate \| Construction \| Real estate:
Loans and Leases Receivable Disclosure [Line Items]
Loan principal to collateral value ratio, percent	80.00%
Owner Occupied Real Estate \| Minimum \| Residential \| Real estate:
Loans and Leases Receivable Disclosure [Line Items]
Fixed interest rate term	5 years
Owner Occupied Real Estate \| Maximum \| Residential \| Real estate:
Loans and Leases Receivable Disclosure [Line Items]
Fixed interest rate term	7 years
Investor Real Estate \| Residential \| Real estate:
Loans and Leases Receivable Disclosure [Line Items]
Initial commitment term	25 years
Balloon payment period	5 years
Covenant compliance, debt service coverage ratio	1.15
Investor Real Estate \| Construction \| Real estate:
Loans and Leases Receivable Disclosure [Line Items]
Loan principal to collateral value ratio, percent	75.00%

Portfolio Loans Receivable - Accretable Discount (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Receivables [Abstract]
Remaining nonaccretable discount	$ 285
Loans receivable, net	800	$ 900
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	(208)	(9)
Accretable discount at end of period	$ 221	$ 429

Portfolio Loans Receivable - Allowance for Loan Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	$ 13,301
Provision for loan losses	11,242	$ 2,791
Charge-Offs	(1,166)	(832)
Recoveries	57	34
Ending Balance	23,434	13,301
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Individually	253	119
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Collectively	23,181	13,182
Outstanding Loan Balances Evaluated for Impairment - Individually	9,963	4,099
Outstanding Loan Balances Evaluated for Impairment - Collectively	1,306,313	1,168,540
Residential \| Real estate:
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	4,135	3,541
Provision for loan losses	3,018	634
Charge-Offs	0	(40)
Recoveries	0	0
Ending Balance	7,153	4,135
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Individually	0	0
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Collectively	7,153	4,135
Outstanding Loan Balances Evaluated for Impairment - Individually	4,687	2,192
Outstanding Loan Balances Evaluated for Impairment - Collectively	433,173	425,734
Commercial
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	1,548	1,578
Provision for loan losses	1,102	299
Charge-Offs	(233)	(331)
Recoveries	0	2
Ending Balance	2,417	1,548
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Individually	253	119
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Collectively	2,164	1,429
Outstanding Loan Balances Evaluated for Impairment - Individually	1,182	474
Outstanding Loan Balances Evaluated for Impairment - Collectively	155,945	150,635
Commercial \| Real estate:
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	3,572	3,003
Provision for loan losses	3,214	556
Charge-Offs	0	0
Recoveries	0	13
Ending Balance	6,786	3,572
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Individually	0	0
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Collectively	6,786	3,572
Outstanding Loan Balances Evaluated for Impairment - Individually	2,358	1,433
Outstanding Loan Balances Evaluated for Impairment - Collectively	390,192	346,658
Construction \| Real estate:
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	2,668	2,093
Provision for loan losses	2,216	575
Charge-Offs	(296)	0
Recoveries	7	0
Ending Balance	4,595	2,668
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Individually	0	0
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Collectively	4,595	2,668
Outstanding Loan Balances Evaluated for Impairment - Individually	1,736	0
Outstanding Loan Balances Evaluated for Impairment - Collectively	223,168	198,702
Consumer \| Credit card
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	1,368	1,084
Provision for loan losses	1,681	726
Charge-Offs	(637)	(461)
Recoveries	50	19
Ending Balance	2,462	1,368
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Individually	0	0
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Collectively	2,462	1,368
Outstanding Loan Balances Evaluated for Impairment - Individually	0	0
Outstanding Loan Balances Evaluated for Impairment - Collectively	102,186	45,526
Consumer \| Other consumer
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	10	9
Provision for loan losses	11	1
Charge-Offs	0	0
Recoveries	0	0
Ending Balance	21	10
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Individually	0	0
Allowance for Loan Losses Ending Balance Evaluated for Impairment - Collectively	21	10
Outstanding Loan Balances Evaluated for Impairment - Individually	0	0
Outstanding Loan Balances Evaluated for Impairment - Collectively	$ 1,649	$ 1,285

Portfolio Loans Receivable - Past Due Financing Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	$ 24,117	$ 11,901
Current Loans	1,292,159	1,160,738
Total Loans	1,316,276	1,172,639
Accruing Loans 90 or More days Past Due	231	619
Nonaccrual Loans	9,007	4,099
Loans 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	16,806	7,433
Loans 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	7,311	4,468
Acquired loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	601	1,548
Current Loans	4,675	4,873
Total Loans	5,276	6,421
Accruing Loans 90 or More days Past Due	225	464
Nonaccrual Loans	381	880
Acquired loans \| Loans 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	36	305
Acquired loans \| Loans 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	565	1,243
Residential \| Real estate:
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	4,568	3,140
Current Loans	433,292	424,786
Total Loans	437,860	427,926
Accruing Loans 90 or More days Past Due	0	374
Nonaccrual Loans	3,581	2,192
Residential \| Real estate: \| Loans 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	1,029	704
Residential \| Real estate: \| Loans 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	3,539	2,436
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	1,227	525
Current Loans	155,900	150,584
Total Loans	157,127	151,109
Accruing Loans 90 or More days Past Due	0	0
Nonaccrual Loans	1,182	474
Commercial \| Loans 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	486	172
Commercial \| Loans 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	741	353
Commercial \| Real estate:
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	2,619	1,946
Current Loans	389,931	346,145
Total Loans	392,550	348,091
Accruing Loans 90 or More days Past Due	225	237
Nonaccrual Loans	2,358	1,433
Commercial \| Real estate: \| Loans 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	36	275
Commercial \| Real estate: \| Loans 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	2,583	1,671
Construction \| Real estate:
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	1,886	756
Current Loans	223,018	197,946
Total Loans	224,904	198,702
Accruing Loans 90 or More days Past Due	0	0
Nonaccrual Loans	1,886	0
Construction \| Real estate: \| Loans 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	1,444	756
Construction \| Real estate: \| Loans 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	442	0
Consumer \| Credit card
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	13,817	5,534
Current Loans	88,369	39,992
Total Loans	102,186	45,526
Accruing Loans 90 or More days Past Due	6	8
Nonaccrual Loans	0	0
Consumer \| Credit card \| Loans 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	13,811	5,526
Consumer \| Credit card \| Loans 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	6	8
Consumer \| Other consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	0	0
Current Loans	1,649	1,285
Total Loans	1,649	1,285
Accruing Loans 90 or More days Past Due	0	0
Nonaccrual Loans	0	0
Consumer \| Other consumer \| Loans 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	0	0
Consumer \| Other consumer \| Loans 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Loans	$ 0	$ 0

Portfolio Loans Receivable - Impaired Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	$ 9,790	$ 4,360
Recorded Investment with no Allowance	8,761	3,826
Recorded Investment with Allowance	391	273
Total Recorded Investment	9,152	4,099
Related Allowance	253	119
Average Recorded Investment	10,136	4,907
Interest Recognized	255	35
Total Loans	1,316,276	1,172,639
Acquired loans
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	548	1,148
Recorded Investment with no Allowance	381	880
Recorded Investment with Allowance	0	0
Total Recorded Investment	381	880
Related Allowance	0	0
Average Recorded Investment	555	1,164
Interest Recognized	3	18
Total Loans	5,276	6,421
Residential \| Real estate:
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	3,960	2,309
Recorded Investment with no Allowance	3,726	2,192
Recorded Investment with Allowance	0	0
Total Recorded Investment	3,726	2,192
Related Allowance	0	0
Average Recorded Investment	3,982	2,510
Interest Recognized	136	8
Total Loans	437,860	427,926
Commercial
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	1,344	574
Recorded Investment with no Allowance	791	201
Recorded Investment with Allowance	391	273
Total Recorded Investment	1,182	474
Related Allowance	253	119
Average Recorded Investment	1,826	777
Interest Recognized	58	9
Total Loans	157,127	151,109
Commercial \| Real estate:
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	2,490	1,477
Recorded Investment with no Allowance	2,358	1,433
Recorded Investment with Allowance	0	0
Total Recorded Investment	2,358	1,433
Related Allowance	0	0
Average Recorded Investment	2,519	1,620
Interest Recognized	46	18
Total Loans	392,550	348,091
Construction \| Real estate:
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	1,996
Recorded Investment with no Allowance	1,886
Recorded Investment with Allowance	0
Total Recorded Investment	1,886
Related Allowance	0
Average Recorded Investment	1,809
Interest Recognized	15
Total Loans	224,904	198,702
Residential Real Estate
Financing Receivable, Impaired [Line Items]
Total Loans	$ 175	$ 481

Portfolio Loans Receivable - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 1,316,276	$ 1,172,639
Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,280,828	1,156,665
Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	22,909	10,850
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	12,539	5,124
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0	0
Residential \| Real estate:
Financing Receivable, Recorded Investment [Line Items]
Total Loans	437,860	427,926
Residential \| Real estate: \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	428,260	425,661
Residential \| Real estate: \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	5,150	0
Residential \| Real estate: \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	4,450	2,265
Residential \| Real estate: \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0	0
Commercial
Financing Receivable, Recorded Investment [Line Items]
Total Loans	157,127	151,109
Commercial \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	145,365	145,178
Commercial \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	9,766	4,505
Commercial \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,996	1,426
Commercial \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0	0
Commercial \| Real estate:
Financing Receivable, Recorded Investment [Line Items]
Total Loans	392,550	348,091
Commercial \| Real estate: \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	383,311	340,313
Commercial \| Real estate: \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	6,881	6,345
Commercial \| Real estate: \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	2,358	1,433
Commercial \| Real estate: \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0	0
Construction \| Real estate:
Financing Receivable, Recorded Investment [Line Items]
Total Loans	224,904	198,702
Construction \| Real estate: \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	220,057	198,702
Construction \| Real estate: \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,112	0
Construction \| Real estate: \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	3,735	0
Construction \| Real estate: \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0	0
Consumer \| Credit card
Financing Receivable, Recorded Investment [Line Items]
Total Loans	102,186	45,526
Consumer \| Credit card \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	102,186	45,526
Consumer \| Credit card \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0	0
Consumer \| Credit card \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0	0
Consumer \| Credit card \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0	0
Consumer \| Other consumer
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,649	1,285
Consumer \| Other consumer \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,649	1,285
Consumer \| Other consumer \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0	0
Consumer \| Other consumer \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0	0
Consumer \| Other consumer \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 0	$ 0

Portfolio Loans Receivable - Trouble Debt Restructuring (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) contract	Dec. 31, 2019 USD ($) contract
Financing Receivable, Modifications [Line Items]
Number of Contracts \| contract	5	5
Recorded Investment	$ 439	$ 459
Acquired loans
Financing Receivable, Modifications [Line Items]
Number of Contracts \| contract	3	3
Recorded Investment		$ 145
Residential \| Real estate:
Financing Receivable, Modifications [Line Items]
Number of Contracts \| contract	3	3
Recorded Investment	$ 145	$ 145
Commercial
Financing Receivable, Modifications [Line Items]
Number of Contracts \| contract	2	2
Recorded Investment	$ 294	$ 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	439	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	$ 294	$ 314
Principal Payment Adjustment
Financing Receivable, Modifications [Line Items]
Number of Contracts \| contract		2
Interest And Payment Terms Changes
Financing Receivable, Modifications [Line Items]
Number of Contracts \| contract		3

Portfolio Loans Receivable - Outstanding Loan Commitments (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Off-balance sheet risk, allowance	$ 1,800	$ 1,200
Commitments to Extend Credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	331,576	260,573
Letters of credit	5,102	5,305
Commitments to Extend Credit \| Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	50,877	36,442
Commitments to Extend Credit \| Commercial \| Real estate:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	15,973	13,754
Commitments to Extend Credit \| Commercial real estate \| Real estate:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	32,398	26,407
Commitments to Extend Credit \| Commercial real estate \| Construction commitments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	0	0
Commitments to Extend Credit \| Residential real estate \| Real estate:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	20,848	31,411
Commitments to Extend Credit \| Residential real estate \| Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	118,843	114,999
Commitments to Extend Credit \| Residential real estate \| Construction commitments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	0	0
Commitments to Extend Credit \| Residential real estate \| Loans Held For Sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	11,444	2,646
Commitments to Extend Credit \| Consumer \| Secured credit card
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	92,452	37,517
Commitments to Extend Credit \| Consumer \| Personal
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	$ 185	$ 43

Portfolio Loans Receivable - Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	$ 13,301
Add: Provision	11,242	$ 2,791
Ending Balance	23,434	13,301
Unfunded Lines of Credit
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	1,226	1,053
Add: Provision	550	173
Add: Recoveries	0	0
Less: Charge-offs	0	0
Ending Balance	1,776	1,226
Mortgage Loans Sold
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	576	501
Add: Provision	598	184
Add: Recoveries	0	0
Less: Charge-offs	(14)	(109)
Ending Balance	$ 1,160	$ 576

Premises and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 8,907	$ 8,881
Less: Accumulated depreciation and amortization	7,554	6,709
Premises and equipment	1,353	2,172
Net lease asset	3,111	3,920
Premises and equipment, net	4,464	6,092
Depreciation and amortization expense	844	1,113
Leasehold improvements
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	1,694	1,688
Furniture and equipment
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	4,635	4,622
Vehicle
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	54	54
Software
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	2,518	2,517
Construction in progress
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 6	$ 0

Leases - Additional Information (Details) $ in Thousands	12 Months Ended
Leases - Additional Information (Details) $ in Thousands	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	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	2.23%
ROU assets	$ 3,111	$ 3,920
Related lease liabilities	3,440
Rent expense	$ 1,600	$ 1,300
Operating Lease, Liability, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilities
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Remaining term of contract	6 years
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Remaining term of contract	1 year

Leases - Assets and Liabilities and Lease Payment Obligations (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Lease asset	$ 5,399
Less: Accumulated amortization	(2,288)
Net lease asset	3,111	$ 3,920
Lease liability	5,577
Less: Accumulated amortization	(2,137)
Net lease liability	3,440
Amounts due in:
2021	1,408
2022	1,023
2023	777
2024	420
Total lease payments	$ 3,628

Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Jan. 07, 2015
Interest Rate Swap
Derivatives, Fair Value [Line Items]
Notional amount			$ 2,000
Interest Rate Swap \| London Interbank Offered Rate (LIBOR)
Derivatives, Fair Value [Line Items]
Derivative, basis spread on variable rate			1.87%
Designated as Hedging Instrument \| Open Forward Delivery Sales Agreements
Derivatives, Fair Value [Line Items]
Notional amount	$ 38,000	$ 61,000
Fair amounts, liabilities	(179)	(125)
Designated as Hedging Instrument \| Open Mandatory Delivery Commitments
Derivatives, Fair Value [Line Items]
Notional amount	15,531	22,888
Fair value amounts, assets	179	122
Designated as Hedging Instrument \| Interest Rate Lock Commitments
Derivatives, Fair Value [Line Items]
Notional amount	34,827	32,365
Fair value amounts, assets	$ 148	$ 115

Interest Bearing Deposits - Major Categories (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Deposits [Abstract]
Interest-bearing demand accounts	$ 257,126	$ 174,166
Money market accounts	447,077	429,078
Savings	4,800	3,675
Certificates of deposit of $250,000 or more	134,752	115,311
Other time deposits	199,814	211,414
Total interest-bearing deposits	1,043,569	933,644
Certificates of deposits, brokered	45,100	88,800
Certificate of Deposit Account Registry Service	10,700	$ 5,000
Certificate of deposit, listing services	$ 62,500
Certificate of deposit, listing services, percent of total deposits	3.80%

Interest Bearing Deposits - Maturities (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Deposits [Abstract]
2021	$ 237,623
2022	93,909
2023	1,915
2024	760
2025, and thereafter	359
Certificates of deposit	$ 334,566

Securities Sold Under Agreements to Repurchase (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Amortized Cost
Assets Sold under Agreements to Repurchase [Line Items]
Investment securities pledged to secure the underlying agreements at year end:	$ 1,142	$ 1,508
Fair Value
Assets Sold under Agreements to Repurchase [Line Items]
Investment securities pledged to secure the underlying agreements at year end:	1,189	1,522
Securities sold under agreements to repurchase
Assets Sold under Agreements to Repurchase [Line Items]
Average amount outstanding	$ 0	$ 1,287
Average rate paid during the year	0.00%	1.75%
Maximum amount outstanding at month end	$ 0	$ 3,400
Securities sold under agreements to repurchase \| Amortized Cost
Assets Sold under Agreements to Repurchase [Line Items]
Investment securities pledged to secure the underlying agreements at year end:	0	0
Securities sold under agreements to repurchase \| Fair Value
Assets Sold under Agreements to Repurchase [Line Items]
Investment securities pledged to secure the underlying agreements at year end:	$ 0	$ 0

Borrowed Funds - Schedule of Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Nov. 30, 2020	Dec. 31, 2019	Nov. 24, 2015
Debt Instrument [Line Items]
Total - FHLB advances	$ 22,000		$ 32,222
Less: Unamortized debt issuance costs	0		(139)
Total - Other borrowed funds	14,016		15,423
FHLB fixed rate advance due October 16, 2025
Debt Instrument [Line Items]
Total - FHLB advances	$ 22,000		$ 0
Interest	0.93%		0.00%
FHLB fixed rate advance due October 16, 2025
Debt Instrument [Line Items]
Total - FHLB advances	$ 0		$ 32,222
Interest	0.00%		2.40%
FRB advances under the SBA-PPP Liquidity Facility
Debt Instrument [Line Items]
Interest	0.00%		0.00%
Long-term debt, gross	$ 1,954		$ 0
Junior Subordinated Debt \| Junior subordinated debentures due June 15, 2036
Debt Instrument [Line Items]
Interest	2.09%		3.76%
Long-term debt, gross	$ 2,062		$ 2,062
Senior Subordinated Notes \| Other subordinated notes due November 30, 2030
Debt Instrument [Line Items]
Interest	5.00%	5.00%	0.00%
Long-term debt, gross	$ 10,000		$ 0
Senior Subordinated Notes \| Other subordinated notes due December 1, 2025
Debt Instrument [Line Items]
Interest	0.00%		6.95%	6.95%
Long-term debt, gross	$ 0		$ 13,500

Borrowed Funds - Additional Information (Details) - USD ($)			12 Months Ended
	Nov. 30, 2020	Nov. 24, 2015	Dec. 31, 2020	Dec. 31, 2019	Jun. 15, 2006
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 76,000,000.0
Line of credit, outstanding amount			0
Federal home loan bank advances			22,000,000	$ 32,222,000
Certificates of deposits, brokered			$ 45,100,000	$ 88,800,000
FRB advances under the SBA-PPP Liquidity Facility
Debt Instrument [Line Items]
Interest rate			0.00%	0.00%
Current borrowing capacity			$ 201,000,000.0
Long-term debt, gross			$ 1,954,000	$ 0
Junior Subordinated Debt \| Junior subordinated debentures due June 15, 2036
Debt Instrument [Line Items]
Interest rate			2.09%	3.76%
Long-term debt, gross			$ 2,062,000	$ 2,062,000
Junior Subordinated Debt \| Junior subordinated debentures due June 15, 2036 \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate			1.89%
Senior Subordinated Notes \| Other subordinated notes due December 1, 2025
Debt Instrument [Line Items]
Face amount		$ 13,500,000
Interest rate		6.95%	0.00%	6.95%
Debt issuance costs		$ 278,231
Long-term debt, gross			$ 0	$ 13,500,000
Senior Subordinated Notes \| Other subordinated notes due December 1, 2025 \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate		5.33%
Senior Subordinated Notes \| Other subordinated notes due November 30, 2030
Debt Instrument [Line Items]
Face amount	$ 10,000,000.0
Interest rate	5.00%		5.00%	0.00%
Debt issuance costs	$ 50,000
Long-term debt, gross			$ 10,000,000	$ 0
Senior Subordinated Notes \| Other subordinated notes due November 30, 2030 \| Three Month SOFR
Debt Instrument [Line Items]
Basis spread on variable rate	4.90%
Capital Securities \| Junior Subordinated Debt \| Junior subordinated debentures due June 15, 2036
Debt Instrument [Line Items]
Securities issued (in shares)					2,000
Face amount					$ 2,000,000
Common Securities \| Junior Subordinated Debt \| Junior subordinated debentures due June 15, 2036
Debt Instrument [Line Items]
Face amount					$ 62,000
Federal Home Loan Bank \| Line of Credit
Debt Instrument [Line Items]
FHLB available borrowing capacity			201,200,000	140,500,000
Financial Network \| Certificates of Deposit
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 277,100,000	209,500,000
Maximum borrowing capacity, percent of assets			15.00%
Pledged Loans \| Federal Home Loan Bank \| Line of Credit
Debt Instrument [Line Items]
FHLB maximum borrowing capacity, percent of assets			25.00%
Current borrowing capacity			$ 222,000,000.0	193,700,000
Pledged Loans \| Federal Reserve Bank Of Richmond \| Line of Credit
Debt Instrument [Line Items]
Current borrowing capacity			15,600,000	12,500,000
Collateral Pledged \| Federal Home Loan Bank \| Line of Credit
Debt Instrument [Line Items]
Investments at fair value			$ 1,200,000	$ 1,500,000

Retirement Plan (Details) - USD ($) $ in Thousands	12 Months Ended
Retirement Plan (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Company's contribution, percent of eligible compensation	3.00%
Company's contribution to the plan	$ 879	$ 691

Related-Party Transactions - Activity in Related Party Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Loans and Leases Receivable, Related Parties [Roll Forward]
Balance at beginning of year	$ 22,112	$ 13,221
Add: New loans	99	14,583
Less: Amounts collected	(2,936)	(5,692)
Balance at end of year	$ 19,275	$ 22,112

Related-Party Transactions - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Officers and Directors
Related Party Transaction [Line Items]
Related party deposits	$ 148,400	$ 141,300
Director
Related Party Transaction [Line Items]
Notes payable, related parties		171
Director \| Lease Payments
Related Party Transaction [Line Items]
Expenses from transactions with related party	76	74
Convertible Subordinated Notes \| Director
Related Party Transaction [Line Items]
Notes payable, related parties	3,300	3,300
Church Street Capital \| Director
Related Party Transaction [Line Items]
Due to subsidiaries	$ 121	$ 364

Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Current:
Federal									$ 9,489	$ 5,151
State									2,995	1,507
Total current expense									12,484	6,658
Deferred tax benefit									(3,170)	(839)
Total income tax expense	$ 3,347	$ 3,128	$ 1,759	$ 1,080	$ 1,581	$ 1,625	$ 1,548	$ 1,066	$ 9,314	$ 5,819

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Components of Net Deferred Tax Asset (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets:
Allowance for loan and credit losses	$ 6,666,000	$ 3,977,000
Reserve for recourse on mortgage loans sold	308,000	158,000
Nonaccrual interest	18,000	19,000
Foreclosed real estate write-downs	22,000	3,000
Stock-based compensation	276,000	251,000
Long-term incentive program	302,000	266,000
Core deposit intangible	17,000	21,000
Unrealized loss on investment securities available for sale	87,000	0
Net operating loss carryforward	123,000	178,000
Deferred tax assets, gross	7,819,000	4,873,000
Deferred tax liabilities:
Unrealized gains on investment securities available for sale	620,000	5,000
Unrealized gain on loans held for sale	67,000	72,000
Accumulated depreciation	190,000	355,000
Deferred casualty gain	1,000	1,000
Deferred tax liabilities, gross	878,000	433,000
Net deferred tax asset before valuation allowance	6,941,000	4,440,000
Less: Valuation allowance	123,000	177,000
Net deferred tax asset	$ 6,818,000	$ 4,263,000

Income Taxes - Reconciliation of Federal Tax Rate to the Effective Rate (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Statutory federal income tax rate	21.00%	21.00%
State income taxes, net of federal income tax benefit	5.40%	6.02%
Nondeductible expenses	0.49%	0.73%
Tax exempt income	(0.01%)	(0.03%)
Other	(0.37%)	(2.10%)
Effective Tax Rate	26.51%	25.62%

Capital Standards (Details) $ in Thousands	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Tier 1 leverage ratio (to average assets)
Tier One Leverage Capital	$ 159,656	$ 135,380
Tier One Leverage Capital to Average Assets	0.0878	0.0996
Tier One Leverage Capital Required for Capital Adequacy	$ 72,770	$ 54,397
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	0.0400	0.0400
Tier One Leverage Capital Full Phase In Of Base III	$ 90,962	$ 67,996
Tier One Leverage Capital Full Phase In Of Base III To Average Assets	5.00%	5.00%
Tier 1 capital (to risk-weighted assets)
Tier One Risk Based Capital	$ 159,656	$ 135,380
Tier One Risk Based Capital to Risk Weighted Assets	0.1310	0.1231
Tier One Risk Based Capital Required for Capital Adequacy	$ 73,100	$ 66,011
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	0.0600	0.0600
Tier One Risk Based Capital Full Phase In Of Base III	$ 97,467	$ 88,015
Tier One Risk Based Capital Full Phase In Of Base III To Risk Weighted Assets	8.00%	8.00%
Common equity tier 1 capital ratio (to risk-weighted assets)
Common Equity Tier One Capital	$ 157,594	$ 133,318
Common Equity Tier One Capital Ratio	0.1294	0.1212
Common Equity Tier One Capital Required for Capital Adequacy	$ 54,825	$ 49,508
Common Equity Tier One Capital Required For Capital Adequacy To Risk Weighted Assets	4.50%	4.50%
Common Equity Tier One Capital Full Phase In Of Base III	$ 79,192	$ 71,512
Common Equity Tier One Capital Full PHase In Of Base III To Risk Weighted Assets	6.50%	6.50%
Total capital ratio (to risk-weighted assets)
Capital	$ 185,008	$ 149,142
Capital to Risk Weighted Assets	0.1519	0.1356
Capital Required for Capital Adequacy	$ 97,467	$ 88,015
Capital Required for Capital Adequacy to Risk Weighted Assets	0.0800	0.0800
Capital Full Phase In Of Base III	$ 121,834	$ 110,018
Capital Full Phase In Of Base III To Risk Weighted Assets	10.00%	10.00%
The Bank
Tier 1 leverage ratio (to average assets)
Tier One Leverage Capital	$ 135,527	$ 114,613
Tier One Leverage Capital to Average Assets	0.0744	0.0865
Tier One Leverage Capital Required for Capital Adequacy	$ 72,770	$ 53,005
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	0.0400	0.0400
Tier One Leverage Capital Required to be Well Capitalized	$ 90,962	$ 66,256
Tier One Leverage Capital Required to be Well Capitalized to Average Assets	0.0500	0.0500
Tier One Leverage Capital Full Phase In Of Base III	$ 90,962	$ 66,256
Tier One Leverage Capital Full Phase In Of Base III To Average Assets	5.00%	5.00%
Tier 1 capital (to risk-weighted assets)
Tier One Risk Based Capital	$ 135,527	$ 114,613
Tier One Risk Based Capital to Risk Weighted Assets	0.1206	0.1073
Tier One Risk Based Capital Required for Capital Adequacy	$ 71,731	$ 64,093
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	0.0600	0.0600
Tier One Risk Based Capital Required to be Well Capitalized	$ 95,642	$ 85,458
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	0.0800	0.0800
Tier One Risk Based Capital Full Phase In Of Base III	$ 95,642	$ 85,458
Tier One Risk Based Capital Full Phase In Of Base III To Risk Weighted Assets	8.00%	8.00%
Common equity tier 1 capital ratio (to risk-weighted assets)
Common Equity Tier One Capital	$ 135,527	$ 114,613
Common Equity Tier One Capital Ratio	0.1206	0.1073
Common Equity Tier One Capital Required for Capital Adequacy	$ 53,798	$ 48,070
Common Equity Tier One Capital Required For Capital Adequacy To Risk Weighted Assets	4.50%	4.50%
Common Equity Tier One Capital Required to be Well-Capitalized	$ 77,709	$ 69,435
Common Equity Tier One Capital To Be Well Capitalized To Risk Weighted Assets	6.50%	6.50%
Common Equity Tier One Capital Full Phase In Of Base III	$ 77,709	$ 69,435
Common Equity Tier One Capital Full PHase In Of Base III To Risk Weighted Assets	6.50%	6.50%
Total capital ratio (to risk-weighted assets)
Capital	$ 150,593	$ 127,976
Capital to Risk Weighted Assets	0.1340	0.1198
Capital Required for Capital Adequacy	$ 95,642	$ 85,458
Capital Required for Capital Adequacy to Risk Weighted Assets	0.0800	0.0800
Capital Required to be Well Capitalized	$ 119,552	$ 106,822
Capital Required to be Well Capitalized to Risk Weighted Assets	0.1000	0.1000
Capital Full Phase In Of Base III	$ 119,552	$ 106,822
Capital Full Phase In Of Base III To Risk Weighted Assets	10.00%	10.00%

Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) plan $ / shares shares	Dec. 31, 2019 USD ($) $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 1,000	$ 858
Weighted average grant date fair value (in dollars per share) \| $ / shares	$ 7.37	$ 4.30
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of incentive compensation plans \| plan	2
Number of shares authorized (in shares) \| shares	1,120,000
Number of shares available for grant (in shares) \| shares	144,049
Award vesting period	4 years
Awards exercisable each anniversary of grant date, percent	25.00%
Unrecognized compensation expense period for recognition	5 years
Unrecognized compensation expense	$ 800	$ 1,700
Exercises in period, intrinsic value	900	1,800
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense (awards other than options)	$ 121	$ 176

Stock-Based Compensation - Stock Options Outstanding (Details) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning of year (in shares)	1,308,047	1,431,860
Add: Granted (in shares)	205,100	249,300
Less: Exercised (in shares)	(142,901)	(221,710)
Less: Retired on exercise (in shares)	(137,334)	(141,955)
Less: Expired/cancelled/forfeited (in shares)	(63,499)	(9,448)
Outstanding at end of year (in shares)	1,169,413	1,308,047
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding at beginning of year (in dollars per share)	$ 11.00	$ 9.38
Add: Granted (in dollars per share)	13.95	14.29
Less: Exercised (in dollars per share)	7.72	6.88
Less: Retired on exercise (in dollars per share)	7.90	6.90
Less: Expired/cancelled/forfeited (in dollars per share)	11.60	10.89
Outstanding at end of year (in dollars per share)	$ 12.21	$ 11.00
Exercisable at end of year (in shares)	567,593	592,782
Exercisable at end of year (in dollars per share)	$ 11.13	$ 9.40

Stock-Based Compensation - Stock Option Summary (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Exercise Price (in dollars per share)	$ 12.21	$ 11.00	$ 9.38
Average Remaining Life (years)	3 years	3 years 1 month 6 days
Outstanding Shares (in shares)	1,169,413	1,308,047	1,431,860
Exercisable Shares (in shares)	567,593	592,782
Outstanding Shares, intrinsic value	$ 2,164,598	$ 5,089,032
Exercisable Shares, intrinsic value	$ 1,620,892	$ 3,256,491
Exercise Price Range 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Exercise Price (in dollars per share)	$ 8.50	$ 7.50
Average Remaining Life (years)	1 year	1 year
Outstanding Shares (in shares)	172,976	236,212
Exercisable Shares (in shares)	172,976	231,212
Exercise Price Range 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Exercise Price (in dollars per share)	$ 10.70	$ 8.50
Average Remaining Life (years)	4 years 3 months 18 days	2 years
Outstanding Shares (in shares)	2,500	202,435
Exercisable Shares (in shares)	0	142,885
Exercise Price Range 3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Exercise Price (in dollars per share)	$ 11.13	$ 11.38
Average Remaining Life (years)	4 years 3 months 18 days	4 years
Outstanding Shares (in shares)	500	346,500
Exercisable Shares (in shares)	0	86,635
Exercise Price Range 4
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Exercise Price (in dollars per share)	$ 11.38	$ 11.41
Average Remaining Life (years)	3 years	4 years
Outstanding Shares (in shares)	306,437	20,000
Exercisable Shares (in shares)	152,953	0
Exercise Price Range 5
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Exercise Price (in dollars per share)	$ 11.41	$ 12.38
Average Remaining Life (years)	4 years	3 years
Outstanding Shares (in shares)	20,000	266,600
Exercisable Shares (in shares)	5,000	130,300
Exercise Price Range 6
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Exercise Price (in dollars per share)	$ 12.38	$ 12.80
Average Remaining Life (years)	2 years	3 years 9 months 18 days
Outstanding Shares (in shares)	238,100	7,000
Exercisable Shares (in shares)	177,450	1,750
Exercise Price Range 7
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Exercise Price (in dollars per share)	$ 12.80	$ 14.54
Average Remaining Life (years)	2 years 9 months 18 days	5 years
Outstanding Shares (in shares)	7,000	229,300
Exercisable Shares (in shares)	3,500	0
Exercise Price Range 8
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Exercise Price (in dollars per share)	$ 13.89
Average Remaining Life (years)	5 years
Outstanding Shares (in shares)	177,100
Exercisable Shares (in shares)	0
Exercise Price Range 9
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Exercise Price (in dollars per share)	$ 14.38
Average Remaining Life (years)	4 years 1 month 6 days
Outstanding Shares (in shares)	5,000
Exercisable Shares (in shares)	0
Exercise Price Range 10
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Exercise Price (in dollars per share)	$ 14.54
Average Remaining Life (years)	4 years
Outstanding Shares (in shares)	219,800
Exercisable Shares (in shares)	55,714
Exercise Price Range 11
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Exercise Price (in dollars per share)	$ 14.89
Average Remaining Life (years)	4 years
Outstanding Shares (in shares)	20,000
Exercisable Shares (in shares)	0

Stock-Based Compensation - Stock Option Pricing Assumptions (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Dividend yield	0.00%	0.00%
Risk free interest rate	0.43%	1.75%
Expected volatility	64.46%	34.79%
Expected life in years	5 years	5 years

Stock-Based Compensation - Restricted Stock Summary (Details) - Restricted Stock - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested at beginning of year (in shares)	19,500	38,000
Add: Granted (in shares)	16,713	0
Less: Vested (in shares)	(5,500)	(18,500)
Less: Forfeited (in shares)	0	0
Nonvested at end of year (in shares)	30,713	19,500
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Nonvested at beginning of year (in dollars per share)	$ 12.38	$ 10.32
Add: Granted (in dollars per share)	14.36	0
Less: Vested (in dollars per share)	12.38	8.16
Less: Forfeited (in dollars per share)	0	0
Nonvested at end of year (in dollars per share)	$ 13.46	$ 12.38

Stock-Based Compensation - Restricted Stock Vesting Schedule (Details) - Restricted Stock - shares	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
2021 (in shares)	9,678
2022 (in shares)	9,678
2023 (in shares)	7,178
2024 (in shares)	4,179
Nonvested restricted stock (in shares)	30,713	19,500	38,000

Parent Company Financial Information - Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets
Portfolio loans receivable, net of deferred fees and costs and net of allowance for loan losses of $23,434 and $13,301	$ 1,292,068	$ 1,156,934
Allowance for loan losses	23,434	13,301		$ 11,308
Accrued interest receivable	8,134	4,770
Deferred tax asset	6,818	4,263
Other assets	2,956	2,518
Total assets	1,876,593	1,427,609
Liabilities
Borrowed funds	14,016	15,423
Accrued interest payable	1,134	1,801
Other liabilities	28,004	19,411
Total liabilities	1,717,282	1,294,278
Stockholders' equity
Common stock	138	139
Additional paid-in capital	50,602	51,561
Retained earnings	106,854	81,618
Accumulated other comprehensive income	1,717	13
Total stockholders' equity	159,311	133,331	$ 114,564
Liabilities and Equity	1,876,593	1,427,609
Parent Company
Assets
Cash and cash equivalents	2,777	2,391
Portfolio loans receivable, net of deferred fees and costs and net of allowance for loan losses of $23,434 and $13,301	26,999	28,044
Allowance for loan losses	258	258
Accrued interest receivable	300	98
Due from subsidiaries	0	16
Prepaid income taxes	0	9
Deferred tax asset	86	65
Total assets	171,629	149,066
Liabilities
Borrowed funds	12,062	15,423
Accrued interest payable	43	82
Other liabilities	213	230
Total liabilities	12,318	15,735
Stockholders' equity
Common stock	138	139
Additional paid-in capital	50,602	51,561
Retained earnings	106,854	81,618
Accumulated other comprehensive income	1,717	13
Total stockholders' equity	159,311	133,331
Liabilities and Equity	171,629	149,066
Bank \| Parent Company
Assets
Investment	137,244	114,626
Church Street Capital \| Parent Company
Assets
Investment	4,161	3,755
Trust \| Parent Company
Assets
Investment	$ 62	$ 62

Parent Company Financial Information - Statements of Income (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Condensed Income Statements, Captions [Line Items]
Total interest income	$ 28,318	$ 25,189	$ 22,000	$ 21,744	$ 21,219	$ 22,354	$ 20,289	$ 18,318	$ 97,251	$ 82,180
Interest expense	2,599	3,150	3,376	4,057	4,339	4,170	3,758	3,574	13,182	15,842
Net interest income	25,719	22,039	18,624	17,687	16,880	18,184	16,531	14,744	84,069	66,338
Provision for loan losses	2,033	3,500	3,300	2,409	921	1,071	677	121	11,242
Net interest income after provision for loan losses									72,827	63,547
Noninterest income	19,437	21,146	13,899	6,579	8,453	7,221	5,927	4,092	61,061	25,692
Noninterest expense	30,086	28,119	22,703	17,843	17,757	18,228	16,210	14,330	98,751	66,525
Income before income taxes	13,037	11,566	6,520	4,014	6,654	6,106	5,571	4,385	35,137	22,714
Income tax expense	(3,347)	(3,128)	(1,759)	(1,080)	(1,581)	(1,625)	(1,548)	(1,066)	(9,314)	(5,819)
Net income	$ 9,690	$ 8,438	$ 4,761	$ 2,934	$ 5,073	$ 4,481	$ 4,023	$ 3,319	25,823	16,895
Parent Company
Condensed Income Statements, Captions [Line Items]
Interest and dividend income									1,662	1,650
Total interest income									7,162	5,150
Interest expense									1,095	1,054
Net interest income									6,067	4,096
Provision for loan losses									0	50
Net interest income after provision for loan losses									6,067	4,046
Noninterest income									3	5
Noninterest expense									334	180
Income before income taxes									5,736	3,871
Income tax expense									50	78
Income before undistributed net income of subsidiaries									5,686	3,793
Undistributed net income of subsidiaries									20,137	13,102
Net income									25,823	16,895
Bank \| Parent Company
Condensed Income Statements, Captions [Line Items]
Dividend from Bank									$ 5,500	$ 3,500

Parent Company Financial Information - Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities
Net income	$ 9,690	$ 8,438	$ 4,761	$ 2,934	$ 5,073	$ 4,481	$ 4,023	$ 3,319	$ 25,823	$ 16,895
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	2,033	$ 3,500	$ 3,300	2,409	921	$ 1,071	$ 677	121	11,242
Stock-based compensation expense									983	795
Deferred income tax benefit									(3,170)	(839)
Amortization of debt issuance cost									139	30
Changes in assets and liabilities:
Accrued interest receivable									(3,364)	(308)
Prepaid income taxes and taxes payable									0	81
Other assets									(438)	(418)
Accrued interest payable									(667)	236
Other liabilities									7,446	2,886
Net cash provided by operating activities									5,457	(27,212)
Cash flows from investing activities
Net cash used in investing activities									(385,512)	(187,981)
Cash flows from financing activities
Repurchase of common stock									(3,720)	(371)
Proceeds from exercise of stock options									922	595
Net cash provided by financing activities									412,141	295,294
Net increase in cash and cash equivalents									32,086	80,101
Cash and cash equivalents, beginning of year				114,824				34,723	114,824	34,723
Cash and cash equivalents, end of year	146,910				114,824				146,910	114,824
Parent Company
Cash flows from operating activities
Net income									25,823	16,895
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses									0	50
Undistributed net income of subsidiaries									(20,137)	(13,102)
Decrease in receivable from Bank									16	38
Stock-based compensation expense									983	795
Director and employee compensation paid in Company stock									268	301
Deferred income tax benefit									(21)	(47)
Amortization of debt issuance cost									139	30
Changes in assets and liabilities:
Accrued interest receivable									(202)	8
Prepaid income taxes and taxes payable									9	81
Other assets									0	(663)
Accrued interest payable									(39)	1
Other liabilities									(17)	195
Net cash provided by operating activities									6,822	4,582
Cash flows from investing activities
Net increase in loans receivable									1,045	(1,062)
Capital contributions to subsidiaries									(1,183)	(5,120)
Net cash used in investing activities									(138)	(6,182)
Cash flows from financing activities
Repayment of debt									(3,500)	0
Repurchase of common stock									(3,720)	(371)
Proceeds from exercise of stock options									922	594
Net cash provided by financing activities									(6,298)	223
Net increase in cash and cash equivalents									386	(1,377)
Cash and cash equivalents, beginning of year				$ 2,391				$ 3,768	2,391	3,768
Cash and cash equivalents, end of year	$ 2,777				$ 2,391				$ 2,777	$ 2,391

Fair Value - Financial Instruments Measured at FV on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	$ 99,787	$ 60,828
Loans held for sale	107,154	71,030
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	99,787	60,828
Loans held for sale	107,154	71,030
Derivative assets	327	237
Derivative liabilities	179	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	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	99,787	60,828
Loans held for sale	107,154	71,030
Derivative assets	327	237
Derivative liabilities	179	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	0
Derivative liabilities	0	0
U.S. government-sponsored enterprises
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale		999
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	10,881	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	10,881	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	10,927	528
Municipal \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	10,927	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	10,927	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	5,767	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	5,767	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	5,767	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	72,212	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	72,212	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	72,212	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	Dec. 31, 2020	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale	$ 107,154	$ 71,030
Aggregate fair value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale	107,154	71,030
Contractual principal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale	99,362	67,118
Difference
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale	$ 7,792	$ 3,912

Fair Value - Impaired Loans and Foreclosed Real Estate (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, net	$ 391	$ 273
Impaired loans, valuation allowance	253	119
Impaired loans	9,152	4,099
Foreclosed real estate	3,326	2,384
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreclosed real estate	3,326
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	9,200	4,100
Impaired loans, valuation allowance	253	119
Impaired loans	8,899	3,980
Foreclosed real estate	$ 3,326	$ 2,384
Minimum \| Level 3 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, discounts to appraisals or cash flows for estimated holding and/or selling costs, percent	0.00%
Foreclosed real estate, discounts to appraisals for estimated holding and/or selling costs, percent	0.00%
Maximum \| Level 3 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, discounts to appraisals or cash flows for estimated holding and/or selling costs, percent	25.00%
Foreclosed real estate, discounts to appraisals for estimated holding and/or selling costs, percent	25.00%

Fair Value - Financial Instruments Carrying Amount, FV and Placement (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Financial assets
Cash and due from banks	$ 18,456	$ 10,530
Interest bearing deposits at other financial institutions	126,081	102,447
Federal funds sold	2,373	1,847
Contractual principal \| Level 1 Inputs
Financial assets
Cash and due from banks	18,456	10,530
Interest bearing deposits at other financial institutions	126,081	102,447
Federal funds sold	2,373	1,847
Restricted investments	3,958	3,966
Financial liabilities
Noninterest-bearing deposits	608,559	291,777
Contractual principal \| Level 3 Inputs
Financial assets
Loans receivable, net	1,493,086	1,156,934
Financial liabilities
Interest-bearing deposits	1,043,569	933,644
FHLB advances and other borrowed funds	36,016	47,645
Aggregate fair value \| Level 1 Inputs
Financial assets
Cash and due from banks	18,456	10,530
Interest bearing deposits at other financial institutions	126,081	102,447
Federal funds sold	2,373	1,847
Restricted investments	3,958	3,966
Financial liabilities
Noninterest-bearing deposits	608,559	291,777
Aggregate fair value \| Level 3 Inputs
Financial assets
Loans receivable, net	1,499,073	1,155,922
Financial liabilities
Interest-bearing deposits	1,048,728	934,349
FHLB advances and other borrowed funds	$ 37,067	$ 47,678

Segments (Details) $ in Thousands	3 Months Ended								12 Months Ended
Segments (Details) $ in Thousands	Dec. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2020 USD ($) segment	Dec. 31, 2019 USD ($)
Segment Reporting Information [Line Items]
Number of reportable business segments \| segment									4
Interest Income	$ 28,318	$ 25,189	$ 22,000	$ 21,744	$ 21,219	$ 22,354	$ 20,289	$ 18,318	$ 97,251	$ 82,180
Interest expense	2,599	3,150	3,376	4,057	4,339	4,170	3,758	3,574	13,182	15,842
Net interest income	25,719	22,039	18,624	17,687	16,880	18,184	16,531	14,744	84,069	66,338
Provision for loan losses	2,033	3,500	3,300	2,409	921	1,071	677	121	11,242
Noninterest income	19,437	21,146	13,899	6,579	8,453	7,221	5,927	4,092	61,061	25,692
Noninterest expense	30,086	28,119	22,703	17,843	17,757	18,228	16,210	14,330	98,751	66,525
Net income before taxes	13,037	$ 11,566	$ 6,520	$ 4,014	6,654	$ 6,106	$ 5,571	$ 4,385	35,137	22,714
Total assets	1,876,593				$ 1,427,609				1,876,593	$ 1,427,609
Operating Segments \| Commercial Bank
Segment Reporting Information [Line Items]
Interest Income									66,373
Interest expense									10,396
Net interest income									55,977
Provision for loan losses									9,461
Noninterest income									822
Noninterest expense									35,790
Net income before taxes									11,548
Total assets	1,624,280								1,624,280
Operating Segments \| CBHL
Segment Reporting Information [Line Items]
Interest Income									2,611
Interest expense									1,691
Net interest income									920
Provision for loan losses									0
Noninterest income									43,250
Noninterest expense									27,530
Net income before taxes									16,640
Total assets	107,507								107,507
Commission expense									10,900
Operating Segments \| OpenSky®
Segment Reporting Information [Line Items]
Interest Income									25,907
Interest expense									0
Net interest income									25,907
Provision for loan losses									1,681
Noninterest income									16,966
Noninterest expense									35,013
Net income before taxes									6,179
Total assets	113,244								113,244
Data processing expense									24,500
Corporate
Segment Reporting Information [Line Items]
Interest Income									2,481
Interest expense									1,216
Net interest income									1,265
Provision for loan losses									100
Noninterest income									23
Noninterest expense									418
Net income before taxes									770
Total assets	178,569								178,569
Eliminations
Segment Reporting Information [Line Items]
Interest Income									(121)
Interest expense									(121)
Net interest income									0
Provision for loan losses									0
Noninterest income									0
Noninterest expense									0
Net income before taxes									0
Total assets	$ (147,006)								$ (147,006)

Quarterly Results of Operations (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]
Interest Income	$ 28,318	$ 25,189	$ 22,000	$ 21,744	$ 21,219	$ 22,354	$ 20,289	$ 18,318	$ 97,251	$ 82,180
Interest Expense	2,599	3,150	3,376	4,057	4,339	4,170	3,758	3,574	13,182	15,842
Net interest income	25,719	22,039	18,624	17,687	16,880	18,184	16,531	14,744	84,069	66,338
Provision for loan losses	2,033	3,500	3,300	2,409	921	1,071	677	121	11,242
Noninterest Income	19,437	21,146	13,899	6,579	8,453	7,221	5,927	4,092	61,061	25,692
Noninterest Expense	30,086	28,119	22,703	17,843	17,757	18,228	16,210	14,330	98,751	66,525
Income before income taxes	13,037	11,566	6,520	4,014	6,654	6,106	5,571	4,385	35,137	22,714
Provision for Income Taxes	3,347	3,128	1,759	1,080	1,581	1,625	1,548	1,066	9,314	5,819
Net income	$ 9,690	$ 8,438	$ 4,761	$ 2,934	$ 5,073	$ 4,481	$ 4,023	$ 3,319	$ 25,823	$ 16,895
Basic earnings per share (in dollars per share)	$ 0.71	$ 0.61	$ 0.34	$ 0.21	$ 0.37	$ 0.33	$ 0.30	$ 0.24	$ 1.87	$ 1.23
Diluted earnings per share (in dollars per share)	$ 0.71	$ 0.61	$ 0.34	$ 0.21	$ 0.36	$ 0.32	$ 0.29	$ 0.24	$ 1.87	$ 1.21