0001628280-24-022477 | 10-Q | XBRL Viewer

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Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	49,000,000	49,000,000
Common stock, shares issued (in shares)	13,889,563	13,922,532
Common stock, shares outstanding (in shares)	13,889,563	13,922,532

Derivative Financial Instruments	3 Months Ended
Derivative Financial Instruments	Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	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 customers have locked into that interest rate. The Company then locks the loan and rate in with an investor and commits to deliver the loan if settlement occurs (Best Efforts). 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 to be 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 by estimating the fair value of the underlying asset, which is impacted by current interest rates and takes into consideration the probability that the rate lock commitments will close or will be funded. There were no outstanding derivative instruments as of March 31, 2024 and December 31, 2023.

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Investment Securities - Amortized cost to Estimated Fair Value (Details)	3 Months Ended
	Mar. 31, 2024 USD ($) security	Mar. 31, 2023 security	Dec. 31, 2023 USD ($)
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 220,193,000		$ 225,679,000
Gross Unrealized Gains	18,000		17,000
Gross Unrealized Losses	(17,957,000)		(17,367,000)
Allowance for Credit Losses	0		0
Investment securities available for sale	$ 202,254,000		208,329,000
Number of securities sold \| security	0	0
Pledged securities	$ 0		170,700,000
Minimum
Debt Securities, Available-for-sale [Line Items]
Subordinated debt	500,000
Maximum
Debt Securities, Available-for-sale [Line Items]
Subordinated debt	$ 2,000,000
Standard & Poor's, AAA Rating
Debt Securities, Available-for-sale [Line Items]
Credit financing ratings	82.00%
Standard & Poor's, AA+ Rating
Debt Securities, Available-for-sale [Line Items]
Credit financing ratings	8.00%
Standard & Poor's, AA- Rating
Debt Securities, Available-for-sale [Line Items]
Credit financing ratings	10.00%
U.S. Treasuries
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 141,347,000		161,420,000
Gross Unrealized Gains	0		0
Gross Unrealized Losses	(12,664,000)		(12,192,000)
Allowance for Credit Losses	0		0
Investment securities available for sale	128,683,000		149,228,000
Municipal
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	11,699,000		11,699,000
Gross Unrealized Gains	0		4,000
Gross Unrealized Losses	(2,445,000)		(2,331,000)
Allowance for Credit Losses	0		0
Investment securities available for sale	9,254,000		9,372,000
Corporate
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	5,000,000		5,000,000
Gross Unrealized Gains	0		0
Gross Unrealized Losses	(543,000)		(587,000)
Allowance for Credit Losses	0		0
Investment securities available for sale	$ 4,457,000		4,413,000
Number of securities in a loss position for greater than twelve months \| security	5
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 6,601,000		7,069,000
Gross Unrealized Gains	18,000		13,000
Gross Unrealized Losses	(38,000)		(37,000)
Allowance for Credit Losses	0		0
Investment securities available for sale	$ 6,581,000		7,045,000
Number of securities in a loss position for greater than twelve months \| security	3
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 55,546,000		40,491,000
Gross Unrealized Gains	0		0
Gross Unrealized Losses	(2,267,000)		(2,220,000)
Allowance for Credit Losses	0		0
Investment securities available for sale	$ 53,279,000		$ 38,271,000

Portfolio Loans Receivable and Allowance for Credit Losses - Schedule of Non-Accrual Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Nonaccrual with No Allowance for Credit Loss	$ 13,482	$ 15,620
Nonaccrual with an Allowance for Credit Loss	879	422
Nonaccrual Loans	14,361	16,042
Interest Recognized on Nonaccrual Loans	550	538
Collateral dependent loans amortized cost	13,984	15,679
Commercial and Industrial
Financing Receivable, Past Due [Line Items]
Specific reserve on collateral dependent loans	150	115
Residential
Financing Receivable, Past Due [Line Items]
Specific reserve on collateral dependent loans	405
Residential \| Real estate:
Financing Receivable, Past Due [Line Items]
Nonaccrual with No Allowance for Credit Loss	6,111	11,152
Nonaccrual with an Allowance for Credit Loss	651	246
Nonaccrual Loans	6,762	11,398
Interest Recognized on Nonaccrual Loans	221	236
Collateral dependent loans amortized cost	5,345	11,152
Commercial \| Real estate:
Financing Receivable, Past Due [Line Items]
Nonaccrual with No Allowance for Credit Loss	3,064	582
Nonaccrual with an Allowance for Credit Loss	0	0
Nonaccrual Loans	3,064	582
Interest Recognized on Nonaccrual Loans	93	46
Collateral dependent loans amortized cost	3,064	582
Construction \| Real estate:
Financing Receivable, Past Due [Line Items]
Nonaccrual with No Allowance for Credit Loss	3,868	3,288
Nonaccrual with an Allowance for Credit Loss	0	0
Nonaccrual Loans	3,868	3,288
Interest Recognized on Nonaccrual Loans	180	185
Collateral dependent loans amortized cost	5,038	3,288
Commercial and Industrial
Financing Receivable, Past Due [Line Items]
Nonaccrual with No Allowance for Credit Loss	439	598
Nonaccrual with an Allowance for Credit Loss	228	176
Nonaccrual Loans	667	774
Interest Recognized on Nonaccrual Loans	56	71
Collateral dependent loans amortized cost	$ 537	$ 657

Portfolio Loans Receivable and Allowance for Credit Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 28,610	$ 27,189	$ 27,189
Provision (Release of Provision) for Credit Losses	2,727	1,660
Charge-Offs	(2,091)	(2,645)	(8,787)
Recoveries	104	12
Ending balance	29,350	26,216	28,610
Residential
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Charge-Offs	(225)		(670)
Residential \| Real estate:
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance	5,518	4,283	4,283
Provision (Release of Provision) for Credit Losses	633	1,125
Charge-Offs	(225)	0
Recoveries	0	0
Ending balance	5,926	5,408	5,518
Commercial
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Charge-Offs			(943)
Commercial \| Real estate:
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance	10,316	12,039	12,039
Provision (Release of Provision) for Credit Losses	807	(2,165)
Charge-Offs	0	(943)
Recoveries	0	0
Ending balance	11,123	8,931	10,316
Construction \| Real estate:
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance	2,271	1,809	1,809
Provision (Release of Provision) for Credit Losses	28	(56)
Charge-Offs	0	0
Recoveries	0	0
Ending balance	2,299	1,753	2,271
Commercial and Industrial
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance	4,406	4,008	4,008
Provision (Release of Provision) for Credit Losses	(306)	940
Charge-Offs	(98)	0	(98)
Recoveries	0	10
Ending balance	4,002	4,958	4,406
Consumer \| Credit card
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance	6,087	5,033	5,033
Provision (Release of Provision) for Credit Losses	1,567	1,818
Charge-Offs	(1,768)	(1,702)	(7,076)
Recoveries	104	2
Ending balance	5,990	5,151	6,087
Consumer \| Other consumer
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance	12	17	17
Provision (Release of Provision) for Credit Losses	(2)	(2)
Charge-Offs	0	0
Recoveries	0	0
Ending balance	$ 10	$ 15	$ 12

Fair Value - Financial Instruments Measured at FV on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	$ 202,254	$ 208,329
Loans held for sale	10,303	7,481
U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	128,683	149,228
Municipal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	9,254	9,372
Corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	4,457	4,413
Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	6,581	7,045
Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	53,279	38,271
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	202,254	208,329
Loans held for sale	10,303	7,481
Derivative assets	0	0
Derivative liabilities	0	0
Fair Value, Measurements, Recurring \| U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	128,683	149,228
Fair Value, Measurements, Recurring \| Municipal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	9,254	9,372
Fair Value, Measurements, Recurring \| Corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	4,457	4,413
Fair Value, Measurements, Recurring \| Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	6,581	7,045
Fair Value, Measurements, Recurring \| Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	53,279	38,271
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	128,683	149,228
Loans held for sale	0	0
Derivative assets	0	0
Derivative liabilities	0	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	128,683	149,228
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Municipal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	73,571	59,101
Loans held for sale	10,303	7,481
Derivative assets	0	0
Derivative liabilities	0	0
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Municipal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	9,254	9,372
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	4,457	4,413
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	6,581	7,045
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	53,279	38,271
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Loans held for sale	0	0
Derivative assets	0	0
Derivative liabilities	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Municipal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3) \| Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	$ 0	$ 0

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net income	$ 6,562	$ 9,735

- Definition

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

+ References

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-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 60B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-60B

Reference 32: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Topic 205
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483499/205-20-50-7

Reference 35: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 230
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 28
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482740/230-10-45-28

Reference 36: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-1A

Reference 37: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-1B

Reference 38: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2

Reference 39: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

+ Details

Consolidated Statements of Income (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Interest income
Loans, including fees	$ 45,991	$ 41,275
Investment securities available for sale	1,251	1,377
Federal funds sold and other	1,127	764
Total interest income	48,369	43,416
Interest expense
Deposits	12,833	7,754
Borrowed funds	528	1,175
Total interest expense	13,361	8,929
Net interest income	35,008	34,487
Provision for credit losses	2,727	1,660
Provision for (release of) credit losses on unfunded commitments	142	(19)
Net interest income after provision for credit losses	32,139	32,846
Noninterest income
Other income	431	432
Total noninterest income	5,972	6,026
Noninterest expenses
Salaries and employee benefits	12,907	12,554
Occupancy and equipment	1,613	1,213
Professional fees	1,947	2,374
Data processing	6,761	6,530
Advertising	2,032	517
Loan processing	371	349
Foreclosed real estate expenses, net	1	6
Merger-related expenses	712	0
Operational losses	931	964
Other operating	2,212	1,715
Total noninterest expenses	29,487	26,222
Income before income taxes	8,624	12,650
Income tax expense	2,062	2,915
Net income	$ 6,562	$ 9,735
Basic earnings per share (in dollars per share)	$ 0.47	$ 0.69
Diluted earnings per share (in dollars per share)	$ 0.47	$ 0.68
Weighted average common shares outstanding:
Basic (in shares)	13,918,724	14,159,383
Diluted (in shares)	13,918,724	14,272,292
Service charges on deposits
Noninterest income
Noninterest income	$ 207	$ 229
Credit card fees
Noninterest income
Noninterest income	3,881	4,210
Mortgage banking revenue
Noninterest income
Noninterest income	$ 1,453	$ 1,155

Fair Value - Loans Held For Sale (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale	$ 10,303	$ 7,481
Aggregate fair value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale	10,303	7,481
Contractual principal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale	7,425	5,168
Difference
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale	$ 2,878	$ 2,313

Leases

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Leases

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

The Company determines if an arrangement is a lease at inception. Operating lease ROU assets are included in premises and equipment, and operating lease liabilities are included as other liabilities in the consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The historical weighted average discount rate was 3.87% at March 31, 2024 and 3.79% at December 31, 2023. The operating lease ROU asset also includes any lease pre-payments. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which the Company has elected to account for separately as the non-lease component amounts are readily determinable under most leases.

As of March 31, 2024, the Company’s net lease ROU assets and related lease liabilities were $3.0 million and $3.5 million, respectively, compared to December 31, 2023 balances of $3.6 million of ROU assets and $3.8 million of lease liabilities, and have remaining terms ranging from one to nine years, including extension options that the Company is reasonably certain will be exercised. As of March 31, 2024, the Company had not entered into any material leases that have not yet commenced. The Company’s lease information is summarized as follows:


(in thousands)	March 31, 2024		December 31, 2023
Lease Right of Use Asset:
Lease asset	$	6,474	$	6,810
Less: Accumulated amortization	(3,461)		(3,223)
Net lease asset	$	3,013	$	3,587



Lease Liability:
Lease liability	$	6,891	6,892
Less: Accumulated amortization	(3,397)		(3,101)
Net lease liability	$	3,494	$	3,791

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


(in thousands)	March 31, 2024
Amounts due in:
2024	$	827
2025	715
2026	665
2027	396
2028	266
2029 and thereafter	1,182
Total future lease payments	4,051
Discount of cash flows	(557)
Present value of net future lease payments	$	3,494

Portfolio Loans Receivable and Allowance for Credit Losses - Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 28,610	$ 27,189
Provision for (release of) credit losses on unfunded commitments	2,727	1,660
Ending balance	29,350	26,216
Unfunded Lines of Credit
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	806	1,682
Provision for (release of) credit losses on unfunded commitments	142	(19)
Ending balance	948	888
Unfunded Lines of Credit \| Cumulative effect adjustment due to adoption of the CECL standard
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	0	(775)
Mortgage Loans Sold
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	985	1,174
Provision for (release of) credit losses on unfunded commitments	13	5
Ending balance	$ 998	$ 1,179

Consolidated Statements of Changes in Stockholders' Equity (unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Cash dividends to stockholders (in dollar per share)	$ 0.08	$ 0.06

Portfolio Loans Receivable and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Schedule of Loans Receivable

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



	March 31, 2024				December 31, 2023
(in thousands)	Amount		Percent		Amount		Percent
Real estate:
Residential	$	577,112	29	%	$	573,104	30	%
Commercial	736,316		37	%	684,229		35	%
Construction	290,016		15	%	290,108		15	%
Commercial and Industrial	254,577		13	%	239,208		13	%
Credit card, net of reserve(1)	111,898		6	%	123,331		7	%
Other consumer	738		—	%	950		—	%
Portfolio loans receivable, gross	1,970,657		100	%	1,910,930		100	%
Deferred origination fees, net	(6,132)				(7,642)
Allowance for credit losses	(29,350)				(28,610)
Portfolio loans receivable, net	$	1,935,175			$	1,874,678

_____________

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

Schedule of Allowance for Credit Losses on Loans Receivables

The following tables set forth the changes in the ACL and an allocation of the ACL by loan segment class for the three months ended March 31, 2024 and March 31, 2023.


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













Three Months Ended March 31, 2023
Real estate:
Residential	$	4,283	$	1,125	$	—	$	—	$	5,408
Commercial	12,039		(2,165)		(943)		—		8,931
Construction	1,809		(56)		—		—		1,753
Commercial and Industrial	4,008		940		—		10		4,958
Credit card	5,033		1,818		(1,702)		2		5,151
Other consumer	17		(2)		—		—		15
Total	$	27,189	$	1,660	$	(2,645)	$	12	$	26,216

Schedule of Past Due Loans Receivables

Past due loans, segregated by age and class of loans, as of March 31, 2024 and December 31, 2023 were as follows:


Portfolio Loans Past Due
	Loans 30-59 Days Past Due		Loans 60-89 Days Past Due		Loans 90 or More Days Past Due		Total Past Due Loans		Current Loans		Total Portfolio Loans		Accruing Loans 90 or More Days Past Due		Nonaccrual Loans
(in thousands)
March 31, 2024
Real estate:
Residential	$	2,479	$	818	$	6,303	$	9,600	$	567,512	$	577,112	$	—	$	6,762
Commercial	1,391		11,610		551		13,552		722,764		736,316		—		3,064
Construction	—		661		3,876		4,537		285,479		290,016		—		3,868
Commercial and Industrial	2,008		1,353		448		3,809		250,768		254,577		—		667
Credit card	5,544		5,494		621		11,659		100,239		111,898		621		—
Other consumer	—		—		—		—		738		738		—		—
Total	$	11,422	$	19,936	$	11,799	$	43,157	$	1,927,500	$	1,970,657	$	621	$	14,361



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

December 31, 2023

Real estate:
Residential	$	2,201	$	3,096	$	11,066	$	16,363	$	556,741	$	573,104	$	17	$	11,398
Commercial	1,577		322		582		2,481		681,748		684,229		—		582
Construction	—		1,165		3,296		4,461		285,647		290,108		—		3,288
Commercial and Industrial	1,356		74		454		1,884		237,324		239,208		—		774
Credit card	7,767		6,877		519		15,163		108,168		123,331		519		—
Other consumer	—		—		—		—		950		950		—		—
Total	$	12,901	$	11,534	$	15,917	$	40,352	$	1,870,578	$	1,910,930	$	536	$	16,042

Schedule of Non-Accrual Loans

The following presents the nonaccrual loans as of March 31, 2024 and December 31, 2023:


	March 31, 2024
	Nonaccrual with No Allowance for Credit Loss		Nonaccrual with an Allowance for Credit Loss		Total Nonaccrual Loans		Interest Recognized on Nonaccrual Loans
(in thousands)

Real estate:
Residential	$	6,111	$	651	$	6,762	$	221
Commercial	3,064		—		3,064		93
Construction	3,868		—		3,868		180
Commercial and Industrial	439		228		667		56


Total	$	13,482	$	879	$	14,361	$	550

	December 31, 2023
	Nonaccrual with No Allowance for Credit Loss		Nonaccrual with an Allowance for Credit Loss		Total Nonaccrual Loans		Interest Recognized on Nonaccrual Loans


Real estate:
Residential	$	11,152	$	246	$	11,398	$	236
Commercial	582		—		582		46
Construction	3,288		—		3,288		185
Commercial and Industrial	598		176		774		71
Total	$	15,620	$	422	$	16,042	$	538


Collateral dependent loans amortized cost
(in thousands)	March 31, 2024		December 31, 2023
Real estate:
Residential	$	5,345	$	11,152
Commercial	3,064		582
Construction	5,038		3,288
Commercial and Industrial	537		657

Total	$	13,984	$	15,679

Schedule of Loans Receivables Credit Quality Indicators

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


March 31, 2024	Term Loans by Origination Year
(in thousands)	2024		2023		2022		2021		2020		Prior		Revolving		Total
Residential – Real estate
Pass	$	29,966	$	134,102	$	132,476	$	76,409	$	75,128	$	117,615	$	—	$	565,696
Special Mention	—		—		—		132		3,647		285		—		4,064
Substandard	—		—		33		332		—		6,987		—		7,352
Doubtful	—		—		—		—		—		—		—		—
Total	29,966		134,102		132,509		76,873		78,775		124,887		—		577,112
Commercial – Real estate
Pass	52,595		63,615		172,972		141,121		77,031		208,492		—		715,826
Special Mention	—		—		18,495		—		—		801		—		19,296
Substandard	—		—		—		—		—		1,194		—		1,194
Doubtful	—		—		—		—		—		—		—		—
Total	52,595		63,615		191,467		141,121		77,031		210,487		—		736,316
Construction – Real estate
Pass	16,217		144,267		59,095		41,338		15,234		8,981		—		285,132
Special Mention	—		661		—		—		—		—		—		661
Substandard	—		—		—		—		1,568		2,655		—		4,223
Doubtful	—		—		—		—		—		—		—		—
Total	16,217		144,928		59,095		41,338		16,802		11,636		—		290,016
Commercial and Industrial
Pass	24,939		71,139		66,282		27,157		8,436		51,796		—		249,749
Special Mention	—		—		805		—		2,367		312		—		3,484
Substandard	—		46		619		207		—		472		—		1,344
Doubtful	—		—		—		—		—		—		—		—
Total	24,939		71,185		67,706		27,364		10,803		52,580		—		254,577
Other consumer
Pass	—		—		262		134		111		231		—		738
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total	—		—		262		134		111		231		—		738
Credit card
Ungraded	—		—		—		—		—		—		111,898		111,898
Portfolio loans receivable, gross	$	123,717	$	413,830	$	451,039	$	286,830	$	183,522	$	399,821	$	111,898	$	1,970,657


March 31, 2024
(in thousands)	2024		2023		2022		2021		2020		Prior		Revolving		Total
Gross Charge-offs
Residential	$	—	$	—	$	—	$	—	$	—	$	225	$	—	$	225
Commercial and Industrial	—		98		—		—		—		—		—		98
Credit card	—		—		—		—		—		—		1,768		1,768
Total	$	—	$	98	$	—	$	—	$	—	$	225	$	1,768	$	2,091


December 31, 2023	Term Loans by Origination Year
(in thousands)	2023		2022		2021		2020		2019		Prior		Revolving		Total
Residential – Real estate
Pass	$	140,394	$	137,362	$	76,556	$	76,938	$	36,122	$	88,055	$	—	$	555,427
Special Mention	—		—		134		3,670		1,176		288		—		5,268
Substandard	—		33		—		—		26		12,350		—		12,409
Doubtful	—		—		—		—		—		—		—		—
Total	140,394		137,395		76,690		80,608		37,324		100,693		—		573,104
Commercial – Real estate
Pass	62,095		185,776		145,756		68,748		96,238		116,347		—		674,960
Special Mention	—		6,897		—		—		805		985		—		8,687
Substandard	—		—		—		—		582		—		—		582
Doubtful	—		—		—		—		—		—		—		—
Total	62,095		192,673		145,756		68,748		97,625		117,332		—		684,229
Construction – Real estate
Pass	142,157		72,240		46,180		16,859		6,246		2,517		—		286,199
Special Mention	—		—		—		—		—		614		—		614
Substandard	—		—		—		1,254		597		1,444		—		3,295
Doubtful	—		—		—		—		—		—		—		—
Total	142,157		72,240		46,180		18,113		6,843		4,575		—		290,108
Commercial and Industrial
Pass	70,540		71,689		28,007		9,364		18,036		37,392		—		235,028
Special Mention	—		156		—		2,406		47		273		—		2,882
Substandard	30		814		211		—		42		201		—		1,298
Doubtful	—		—		—		—		—		—		—		—
Total	70,570		72,659		28,218		11,770		18,125		37,866		—		239,208
Other consumer
Pass	75		278		147		116		—		334		—		950
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total	75		278		147		116		—		334		—		950
Credit card
Ungraded	—		—		—		—		—		—		123,331		123,331
Portfolio loans receivable, gross	$	415,291	$	475,245	$	296,991	$	179,355	$	159,917	$	260,800	$	123,331	$	1,910,930


December 31, 2023
(in thousands)	2023		2022		2021		2020		2019		Prior		Revolving		Total
Gross Charge-offs
Residential	$	—	$	—	$	—	$	—	$	—	$	670	$	—	$	670
Commercial	—		—		—		—		943		—		—		943
Commercial and Industrial	—		98		—		—		—		—		—		98
Credit card	—		—		—		—		—		—		7,076		7,076
Total	$	—	$	98	$	—	$	—	$	943	$	670	$	7,076	$	8,787

Schedule of Outstanding Loan Commitments

Outstanding loan commitments were as follows:


(in thousands)	March 31, 2024		December 31, 2023
Unused lines of credit
Real Estate:
Residential	$	17,812	$	15,436
Residential - Home Equity	43,225		43,892
Commercial	29,542		20,424
Construction	116,614		98,777
Commercial and Industrial	52,627		42,751
Credit card(1)	128,374		114,882
Other consumer	311		310
Total	$	388,505	$	336,472



Letters of credit	$	4,641	$	4,641

_______________

(1)Outstanding loan commitments in the credit card portfolio include $108.4 million and $98.2 million in secured and partially secured balances as of March 31, 2024 and December 31, 2023, respectively.

Schedule of Credit Losses for Financing Receivables

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


	Three months ended
(in thousands)	March 31, 2024		March 31, 2023
Balance at beginning of period	$	806	$	1,682
Impact of adopting the CECL standard on January 1, 2023	—		(775)
Provision for (release of) credit losses on unfunded commitments	142		(19)


Balance at end of period	$	948	$	888

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


	Three months ended
(in thousands)	March 31, 2024		March 31, 2023
Balance at beginning of period	$	985	$	1,174
Provision for mortgage loan put-back reserve	13		5


Balance at end of period	$	998	$	1,179

Investment Securities - Unrealized Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
AFS, Less than 12 Months, Fair Value	$ 22,128	$ 6,057
AFS, Less than 12 months, Unrealized Losses	(197)	(8)
AFS,12 Months or Longer, Fair Value	178,305	199,482
AFS, 12 months or longer, Unrealized Losses	(17,760)	(17,359)
AFS, Total, Fair Value	200,433	205,539
AFS, Total, Unrealized Losses	(17,957)	(17,367)
U.S. Treasuries
Debt Securities, Available-for-sale [Line Items]
AFS, Less than 12 Months, Fair Value	0	0
AFS, Less than 12 months, Unrealized Losses	0	0
AFS,12 Months or Longer, Fair Value	128,683	149,228
AFS, 12 months or longer, Unrealized Losses	(12,664)	(12,192)
AFS, Total, Fair Value	128,683	149,228
AFS, Total, Unrealized Losses	(12,664)	(12,192)
Municipal
Debt Securities, Available-for-sale [Line Items]
AFS, Less than 12 Months, Fair Value	894	0
AFS, Less than 12 months, Unrealized Losses	(3)	0
AFS,12 Months or Longer, Fair Value	8,360	8,473
AFS, 12 months or longer, Unrealized Losses	(2,442)	(2,331)
AFS, Total, Fair Value	9,254	8,473
AFS, Total, Unrealized Losses	(2,445)	(2,331)
Corporate
Debt Securities, Available-for-sale [Line Items]
AFS, Less than 12 Months, Fair Value	0	0
AFS, Less than 12 months, Unrealized Losses	0	0
AFS,12 Months or Longer, Fair Value	4,457	4,413
AFS, 12 months or longer, Unrealized Losses	(543)	(587)
AFS, Total, Fair Value	4,457	4,413
AFS, Total, Unrealized Losses	(543)	(587)
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
AFS, Less than 12 Months, Fair Value	0	0
AFS, Less than 12 months, Unrealized Losses	0	0
AFS,12 Months or Longer, Fair Value	4,760	5,154
AFS, 12 months or longer, Unrealized Losses	(38)	(37)
AFS, Total, Fair Value	4,760	5,154
AFS, Total, Unrealized Losses	(38)	(37)
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
AFS, Less than 12 Months, Fair Value	21,234	6,057
AFS, Less than 12 months, Unrealized Losses	(194)	(8)
AFS,12 Months or Longer, Fair Value	32,045	32,214
AFS, 12 months or longer, Unrealized Losses	(2,073)	(2,212)
AFS, Total, Fair Value	53,279	38,271
AFS, Total, Unrealized Losses	$ (2,267)	$ (2,220)

Nature of Business and Basis of Presentation (Policies)	3 Months Ended
Nature of Business and Basis of Presentation (Policies)	Mar. 31, 2024
Accounting Policies [Abstract]
Nature of operations	Nature of operations: Capital Bancorp, Inc. is a Maryland corporation and the bank holding company (the “Company”) for Capital Bank, N.A. (the “Bank”). The Company's primary operations are conducted by the Bank, which operates branches in Rockville and Columbia, Maryland; Reston, Virginia; and the District of Columbia. The Bank is principally engaged in the business of investing in commercial, real estate, and credit card loans and attracting deposits. The Company originates residential mortgages for sale in the secondary market through Capital Bank Home Loans (“CBHL”), the Bank’s residential mortgage banking arm, and issues credit cards through OpenSky™, a digitally-driven nationwide credit card platform providing secured, partially secured, and unsecured credit solutions. 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. At March 31, 2024, Church Street Capital had loans totaling $7.6 million with a collectively assessed allowance for credit losses (“ACL”) of $184 thousand. Refer to Note 5 - “Portfolio Loans Receivable” to the “Notes to Unaudited Consolidated Financial Statements” for further discussion of the consolidated ACL. In addition, the Company owns all of the stock of Capital Bancorp (MD) Statutory Trust I (the “Trust”). The Trust is a special purpose non-consolidated entity organized for the sole purpose of issuing trust preferred securities.
Basis of presentation	Basis of presentation: The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with rules and regulations of the Securities and Exchange Commission (“SEC”) and include the activity of the Company and its wholly-owned subsidiaries, the Bank and Church Street Capital. The statements do not include all of the information and footnotes required by GAAP for complete financial statements. All adjustments have been made which, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. Such adjustments are all of a normal and recurring nature. All significant inter-company accounts and transactions have been eliminated in consolidation. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the full year. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto as of December 31, 2023, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The Company reports its activities as 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.
Recently issued accounting pronouncements	Recently issued accounting pronouncements: In December 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 requires public entities to disclose significant segment expenses, an amount and description for other segment items, the title and position of the entity’s chief operating decision maker (“CODM”) and an explanation of how the CODM uses the reported measures of profit or loss to assess segment performance, and, on an interim basis, certain segment related disclosures that previously were required only on an annual basis. ASU 2023-07 also clarifies that entities with a single reportable segment are subject to both new and existing segment reporting requirements and that an entity is permitted to disclose multiple measures of segment profit or loss, provided that certain criteria are met. ASU 2023-07 is effective for the Company for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company will update its segment related disclosures upon adoption. In December 2023, the FASB issued Accounting Standards Update 2023-09, “Income Taxes (Topic 740), Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires public entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. ASU 2023-09 also requires all entities to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on quantitative thresholds, among other things. ASU 2023-09 is effective for the Company for fiscal years beginning after December 15, 2024 with early adoption permitted. The Company will update its income tax disclosures upon adoption. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company's financial position, results of operations or cash flows.
Reclassifications	Reclassifications: Certain reclassifications have been made to amounts reported in prior periods to conform to the current period presentation. The reclassifications had no material effect on net income or total stockholders' equity.
Subsequent events	Subsequent events: Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events through the date the financial statements were available to be issued and no subsequent events occurred requiring accrual or disclosure.

Nature of Business and Basis of Presentation	3 Months Ended
Nature of Business and Basis of Presentation	Mar. 31, 2024
Accounting Policies [Abstract]
Nature of Business and Basis of Presentation	Nature of operations: Capital Bancorp, Inc. is a Maryland corporation and the bank holding company (the “Company”) for Capital Bank, N.A. (the “Bank”). The Company's primary operations are conducted by the Bank, which operates branches in Rockville and Columbia, Maryland; Reston, Virginia; and the District of Columbia. The Bank is principally engaged in the business of investing in commercial, real estate, and credit card loans and attracting deposits. The Company originates residential mortgages for sale in the secondary market through Capital Bank Home Loans (“CBHL”), the Bank’s residential mortgage banking arm, and issues credit cards through OpenSky™, a digitally-driven nationwide credit card platform providing secured, partially secured, and unsecured credit solutions. 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. At March 31, 2024, Church Street Capital had loans totaling $7.6 million with a collectively assessed allowance for credit losses (“ACL”) of $184 thousand. Refer to Note 5 - “Portfolio Loans Receivable” to the “Notes to Unaudited Consolidated Financial Statements” for further discussion of the consolidated ACL. In addition, the Company owns all of the stock of Capital Bancorp (MD) Statutory Trust I (the “Trust”). The Trust is a special purpose non-consolidated entity organized for the sole purpose of issuing trust preferred securities. Basis of presentation: The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with rules and regulations of the Securities and Exchange Commission (“SEC”) and include the activity of the Company and its wholly-owned subsidiaries, the Bank and Church Street Capital. The statements do not include all of the information and footnotes required by GAAP for complete financial statements. All adjustments have been made which, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. Such adjustments are all of a normal and recurring nature. All significant inter-company accounts and transactions have been eliminated in consolidation. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the full year. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto as of December 31, 2023, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The Company reports its activities as 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. Significant accounting policies: The preparation of consolidated financial statements in accordance with GAAP requires estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. The primary reference point for the estimates is on historical experience and assumptions believed to be reasonable regarding the value of certain assets and liabilities that are not readily available from other sources. Estimates are evaluated on an ongoing basis. Actual results may materially differ from these estimates under different assumptions or conditions. The Company’s significant accounting policies are described in the “Notes to the Consolidated Financial Statements” included in our Annual Report on Form 10-K for the year ended December 31, 2023. There have been no changes to our significant accounting policies during the three months ended March 31, 2024. Recently issued accounting pronouncements: In December 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 requires public entities to disclose significant segment expenses, an amount and description for other segment items, the title and position of the entity’s chief operating decision maker (“CODM”) and an explanation of how the CODM uses the reported measures of profit or loss to assess segment performance, and, on an interim basis, certain segment related disclosures that previously were required only on an annual basis. ASU 2023-07 also clarifies that entities with a single reportable segment are subject to both new and existing segment reporting requirements and that an entity is permitted to disclose multiple measures of segment profit or loss, provided that certain criteria are met. ASU 2023-07 is effective for the Company for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company will update its segment related disclosures upon adoption. In December 2023, the FASB issued Accounting Standards Update 2023-09, “Income Taxes (Topic 740), Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires public entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. ASU 2023-09 also requires all entities to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on quantitative thresholds, among other things. ASU 2023-09 is effective for the Company for fiscal years beginning after December 15, 2024 with early adoption permitted. The Company will update its income tax disclosures upon adoption. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company's financial position, results of operations or cash flows. Reclassifications: Certain reclassifications have been made to amounts reported in prior periods to conform to the current period presentation. The reclassifications had no material effect on net income or total stockholders' equity. Subsequent events: Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events through the date the financial statements were available to be issued and no subsequent events occurred requiring accrual or disclosure.

Fair Value

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value

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

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

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

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

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

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

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

Derivative financial instruments - The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). Our derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services.

The Company has categorized its financial instruments measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 as follows:


(in thousands)
March 31, 2024	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Investment securities available for sale
U.S. Treasuries	$	128,683	$	128,683	$	—	$	—

Municipal	9,254		—		9,254		—
Corporate	4,457		—		4,457		—
Asset-backed securities	6,581		—		6,581		—
Mortgage-backed securities	53,279		—		53,279		—
Total	$	202,254	$	128,683	$	73,571	$	—

Loans held for sale	$	10,303	$	—	$	10,303	$	—
Derivative assets	$	—	$	—	$	—	$	—
Derivative liabilities	$	—	$	—	$	—	$	—


December 31, 2023
Investment securities available for sale
U.S. Treasuries	$	149,228	$	149,228	$	—	$	—

Municipal	9,372		—		9,372		—
Corporate	4,413		—		4,413		—
Asset-backed securities	7,045		—		7,045		—
Mortgage-backed securities	38,271		—		38,271		—
Total	$	208,329	$	149,228	$	59,101	$	—

Loans held for sale	$	7,481	$	—	$	7,481	$	—
Derivative assets	$	—	$	—	$	—	$	—
Derivative liabilities	$	—	$	—	$	—	$	—

Financial instruments recorded using FASB ASC 825-10

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

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


Fair Value of Loans Held for Sale
(in thousands)	March 31, 2024		December 31, 2023
Aggregate fair value	$	10,303	$	7,481
Contractual principal	7,425		5,168
Difference	$	2,878	$	2,313

The Company has elected to account for loans held for sale at fair value to eliminate the mismatch that would occur by recording changes in market value on derivative instruments used to hedge loans held for sale while carrying the loans at the lower of cost or market. As of March 31, 2024 and December 31, 2023, there were no held for sale loans which were classified as nonaccrual.

Fair value measurements on a nonrecurring basis

Individually evaluated loans - The Company has measured expected credit losses based on the fair value of the loan's collateral and discounted cash flow analysis, where appropriate. Fair value of the collateral is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values. As of March 31, 2024 and December 31, 2023, the fair values consist of loan balances of $14.4 million and $16.0 million, with specific reserves of $879 thousand and $422 thousand, respectively.

Foreclosed real estate - The Company's foreclosed real estate is measured at fair value less cost to sell. Fair value is determined based on offers and/or appraisals. Cost to sell the real estate is based on standard market factors. The Company categorizes its foreclosed real estate as Level 3. As of March 31, 2024 and December 31, 2023, there was no foreclosed real estate held by the Company.

The Company has categorized its financial instruments measured at fair value on a nonrecurring basis as of March 31, 2024 and December 31, 2023 as follows:



(in thousands)	March 31, 2024		December 31, 2023
Individually evaluated loans for credit loss, net


Level 3 inputs	13,481		15,620
Total	$	13,481	15,620

The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at March 31, 2024 and December 31, 2023:

Unobservable Inputs

Valuation Technique

Unobservable Inputs

Range of Inputs

Individually evaluated loans

Appraised Value/Discounted Cash Flows

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

0 to 25%

Fair value of financial instruments

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

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

As of March 31, 2024, the techniques used by the Company to estimate the exit price of the loan portfolio consists of similar procedures to those used as of December 31, 2023. The fair value of the Company’s loan portfolio includes a credit risk assumption in the determination of the fair value of its loans. This credit risk assumption is intended to approximate the fair value that a market participant would realize in a hypothetical orderly transaction. The Company’s loan portfolio is initially fair valued using a segmented approach. The Company divides its loan portfolio into the following categories: variable rate loans, individually analyzed loans, and all other loans. The results are then adjusted to account for credit risk as described above, and a further credit risk discount is applied through the use of a discounted cash flow model to compensate for illiquidity risk, based on certain assumptions included within the discounted cash flow model, primarily the use of discount rates that better capture inherent credit risk over the lifetime of a loan.

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

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

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

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

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

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

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

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


	March 31, 2024				December 31, 2023
(in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Level 1
Cash and due from banks	$	12,361	$	12,361	$	14,513	$	14,513
Interest-bearing deposits at other financial institutions	72,787		72,787		39,044		39,044

Federal funds sold	56		56		407		407
Level 3

Portfolio loans receivable, net	$	1,935,175	$	1,902,408	$	1,874,678	$	1,855,158

Restricted investments	4,441		4,441		4,353		4,353

Financial liabilities
Level 1
Noninterest-bearing deposits	$	665,812	$	665,812	$	617,373	$	617,373

Level 3
Interest-bearing deposits	$	1,339,883	$	1,339,795	$	1,278,623	$	1,280,682
FHLB advances and other borrowed funds	34,062		31,620		49,062		46,634

- 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

Leases (Tables)

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Schedule of Assets and Liabilities, Lessee

The Company’s lease information is summarized as follows:


(in thousands)	March 31, 2024		December 31, 2023
Lease Right of Use Asset:
Lease asset	$	6,474	$	6,810
Less: Accumulated amortization	(3,461)		(3,223)
Net lease asset	$	3,013	$	3,587



Lease Liability:
Lease liability	$	6,891	6,892
Less: Accumulated amortization	(3,397)		(3,101)
Net lease liability	$	3,494	$	3,791

Schedule of Lessee, Operating Lease, Liability, Maturity

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


(in thousands)	March 31, 2024
Amounts due in:
2024	$	827
2025	715
2026	665
2027	396
2028	266
2029 and thereafter	1,182
Total future lease payments	4,051
Discount of cash flows	(557)
Present value of net future lease payments	$	3,494

Investment Securities

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Investment Securities

The following table summarizes the amortized cost, fair value and allowance for credit losses of securities available for sale at March 31, 2024 and December 31, 2023, respectively, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss):


(in thousands)
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
March 31, 2024
U.S. Treasuries	$	141,347	$	—	$	(12,664)	$	—	$	128,683

Municipal	11,699		—		(2,445)		—		9,254
Corporate	5,000		—		(543)		—		4,457
Asset-backed securities	6,601		18		(38)		—		6,581
Mortgage-backed securities	55,546		—		(2,267)		—		53,279
Total	$	220,193	$	18	$	(17,957)	$	—	$	202,254

December 31, 2023
U.S. Treasuries	$	161,420	$	—	$	(12,192)	$	—	$	149,228

Municipal	11,699		4		(2,331)		—		9,372
Corporate	5,000		—		(587)		—		4,413
Asset-backed securities	7,069		13		(37)		—		7,045
Mortgage-backed securities	40,491		—		(2,220)		—		38,271
Total	$	225,679	$	17	$	(17,367)	$	—	$	208,329

There were no securities sold during the three months ended March 31, 2024 or the three months ended March 31, 2023. There was no ACL required on available for sale debt securities in an unrealized loss position at March 31, 2024 and December 31, 2023.

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


	March 31, 2024				December 31, 2023
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	29,962	$	29,211	$	39,918	$	39,294
One to five years	91,580		83,076		101,688		93,218
Five to ten years	28,661		24,132		26,215		22,511
Beyond ten years	7,843		5,975		10,298		7,990
Asset-backed securities(1)	6,601		6,581		7,069		7,045
Mortgage-backed securities(1)	55,546		53,279		40,491		38,271
Total	$	220,193	$	202,254	$	225,679	$	208,329

_______________

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

There were no securities pledged at March 31, 2024 and December 31, 2023 to secure public deposits and repurchase agreements. Pledged securities at the Federal Reserve’s Bank Term Funding Program (“BTFP”) totaled $170.7 million at December 31, 2023 with no securities pledged as of March 31, 2024 as the program ended during the first quarter 2024.

At March 31, 2024 and December 31, 2023, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.

The following table summarizes debt securities available for sale in an unrealized loss position for which an ACL has not been recorded at March 31, 2024 and December 31, 2023, aggregated by major security type and length of time in a continuous unrealized loss position:


	Less than 12 months				12 months or longer				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2024
U.S. Treasuries	$	—	$	—	$	128,683	$	(12,664)	$	128,683	$	(12,664)
Municipal	894		(3)		8,360		(2,442)		9,254		(2,445)
Corporate	—		—		4,457		(543)		4,457		(543)
Asset-backed securities	—		—		4,760		(38)		4,760		(38)
Mortgage-backed securities	21,234		(194)		32,045		(2,073)		53,279		(2,267)
Total	$	22,128	$	(197)	$	178,305	$	(17,760)	$	200,433	$	(17,957)

December 31, 2023
U.S. Treasuries	$	—	$	—	$	149,228	$	(12,192)	$	149,228	$	(12,192)

Municipal	—		—		8,473		(2,331)		8,473		(2,331)
Corporate	—		—		4,413		(587)		4,413		(587)
Asset-backed securities	—		—		5,154		(37)		5,154		(37)
Mortgage-backed securities	6,057		(8)		32,214		(2,212)		38,271		(2,220)
Total	$	6,057	$	(8)	$	199,482	$	(17,359)	$	205,539	$	(17,367)

As of March 31, 2024, management determined the Company does not have the intent to sell, nor is it more likely than not that it will be required to sell, available for sale debt securities in an unrealized loss position at March 31, 2024 before it is able to recover the amortized cost basis. Further, management reviewed the Company’s holdings as of March 31, 2024 and concluded there were no credit-related declines in fair value. Additional information related to the types of securities held at March 31, 2024, other than securities issued or guaranteed by U.S. Government entities or agencies, is as follows:

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

Municipal Securities — All of the Company’s holdings of municipal bonds were investment grade and there have been no payment defaults. Summary ratings information at March 31, 2024, based on the amortized cost basis and reflecting the lowest enhanced or underlying rating by Moody’s, Standard & Poors or Fitch, is as follows: AAA - 82% of the portfolio; AA+ - 8%; AA - 10%.

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

As such, it is deemed the above listed securities are not in an unrealized loss position due to credit-related issues and no further analysis is warranted as of March 31, 2024.

Segments (Details) $ in Thousands	3 Months Ended
Segments (Details) $ in Thousands	Mar. 31, 2024 USD ($) segment	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments \| segment	4
Interest income	$ 48,369	$ 43,416
Interest expense	13,361	8,929
Net interest income	35,008	34,487
(Release of) provision for credit losses	2,727	1,660
Provision for (release of) credit losses on unfunded commitments	142	(19)
Net interest income after provision	32,139	32,846
Noninterest income	5,972	6,026
Noninterest expense	29,487	26,222
Net income (loss) before taxes	8,624	12,650
Total assets	2,324,238	2,245,286	$ 2,226,176
Eliminations
Segment Reporting Information [Line Items]
Interest income	(63)	(69)
Interest expense	(63)	(69)
Net interest income	0	0
(Release of) provision for credit losses	0	0
Provision for (release of) credit losses on unfunded commitments	0	0
Net interest income after provision	0	0
Noninterest income	0	0
Noninterest expense	0	0
Net income (loss) before taxes	0	0
Total assets	(233,682)	(203,350)
Commercial Bank \| Operating Segments
Segment Reporting Information [Line Items]
Interest income	32,529	26,300
Interest expense	13,154	8,739
Net interest income	19,375	17,561
(Release of) provision for credit losses	1,109	(161)
Provision for (release of) credit losses on unfunded commitments	142	(19)
Net interest income after provision	18,124	17,741
Noninterest income	704	489
Noninterest expense	12,259	11,759
Net income (loss) before taxes	6,569	6,471
Total assets	2,160,051	2,074,634
CBHL \| Operating Segments
Segment Reporting Information [Line Items]
Interest income	83	77
Interest expense	41	30
Net interest income	42	47
(Release of) provision for credit losses	0	0
Provision for (release of) credit losses on unfunded commitments	0	0
Net interest income after provision	42	47
Noninterest income	1,352	1,327
Noninterest expense	2,105	2,336
Net income (loss) before taxes	(711)	(962)
Total assets	10,785	10,193
Open Sky
Segment Reporting Information [Line Items]
Noninterest expense	6,100	5,900
Open Sky \| Operating Segments
Segment Reporting Information [Line Items]
Interest income	14,921	16,130
Interest expense	0	0
Net interest income	14,921	16,130
(Release of) provision for credit losses	1,559	1,821
Provision for (release of) credit losses on unfunded commitments	0	0
Net interest income after provision	13,362	14,309
Noninterest income	3,915	4,210
Noninterest expense	13,599	11,738
Net income (loss) before taxes	3,678	6,781
Total assets	105,318	106,761
Corporate \| Operating Segments
Segment Reporting Information [Line Items]
Interest income	899	978
Interest expense	229	229
Net interest income	670	749
(Release of) provision for credit losses	59	0
Provision for (release of) credit losses on unfunded commitments	0	0
Net interest income after provision	611	749
Noninterest income	1	0
Noninterest expense	1,524	389
Net income (loss) before taxes	(912)	360
Total assets	$ 281,766	$ 257,048

Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2016-13 [Member]

- Definition

Indicates amendment to accounting standards.

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-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 61: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 62: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (b)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 63: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 64: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 65: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 66: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (e)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 67: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (e)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 68: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (e)(4)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 69: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 70: http://www.xbrl.org/2003/role/disclosureRef
-Topic 310
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-Name Accounting Standards Codification
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-Paragraph 2
-Subparagraph (a)
-Publisher FASB
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Reference 71: http://www.xbrl.org/2003/role/disclosureRef
-Topic 310
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-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481925/310-20-65-2

Reference 72: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-1

+ Details

Leases - Additional Information (Details) $ in Thousands	3 Months Ended
Leases - Additional Information (Details) $ in Thousands	Mar. 31, 2024 USD ($) branch location	Dec. 31, 2023 USD ($)
Lessee, Lease, Description [Line Items]
Number of full service branches \| branch	4
Number of other locations \| location	4
Weighted average discount rate	3.87%	3.79%
ROU assets	$ 3,013	$ 3,587
Present value of net future lease payments	$ 3,494	$ 3,791
Minimum
Lessee, Lease, Description [Line Items]
Remaining term of contract	1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining term of contract	9 years

Investment Securities - By Maturity Dates (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Amortized Cost
Within one year	$ 29,962	$ 39,918
One to five years	91,580	101,688
Five to ten years	28,661	26,215
Beyond ten years	7,843	10,298
Asset/Mortgage-backed securities	220,193	225,679
Fair Value
Within one year	29,211	39,294
One to five years	83,076	93,218
Five to ten years	24,132	22,511
Beyond ten years	5,975	7,990
Fair Value	202,254	208,329
Asset-backed securities
Amortized Cost
Asset/Mortgage-backed securities	6,601	7,069
Fair Value
Fair Value	6,581	7,045
Mortgage-backed securities
Amortized Cost
Asset/Mortgage-backed securities	55,546	40,491
Fair Value
Fair Value	$ 53,279	$ 38,271

Fair Value (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

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

The Company has categorized its financial instruments measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 as follows:


(in thousands)
March 31, 2024	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Investment securities available for sale
U.S. Treasuries	$	128,683	$	128,683	$	—	$	—

Municipal	9,254		—		9,254		—
Corporate	4,457		—		4,457		—
Asset-backed securities	6,581		—		6,581		—
Mortgage-backed securities	53,279		—		53,279		—
Total	$	202,254	$	128,683	$	73,571	$	—

Loans held for sale	$	10,303	$	—	$	10,303	$	—
Derivative assets	$	—	$	—	$	—	$	—
Derivative liabilities	$	—	$	—	$	—	$	—


December 31, 2023
Investment securities available for sale
U.S. Treasuries	$	149,228	$	149,228	$	—	$	—

Municipal	9,372		—		9,372		—
Corporate	4,413		—		4,413		—
Asset-backed securities	7,045		—		7,045		—
Mortgage-backed securities	38,271		—		38,271		—
Total	$	208,329	$	149,228	$	59,101	$	—

Loans held for sale	$	7,481	$	—	$	7,481	$	—
Derivative assets	$	—	$	—	$	—	$	—
Derivative liabilities	$	—	$	—	$	—	$	—

Schedule of Fair Value of Loans Held For Sale


Fair Value of Loans Held for Sale
(in thousands)	March 31, 2024		December 31, 2023
Aggregate fair value	$	10,303	$	7,481
Contractual principal	7,425		5,168
Difference	$	2,878	$	2,313

Schedule of Fair Value Measurements, Nonrecurring

The Company has categorized its financial instruments measured at fair value on a nonrecurring basis as of March 31, 2024 and December 31, 2023 as follows:



(in thousands)	March 31, 2024		December 31, 2023
Individually evaluated loans for credit loss, net


Level 3 inputs	13,481		15,620
Total	$	13,481	15,620

Schedule of Fair Value Measurement Inputs and Valuation Techniques

The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at March 31, 2024 and December 31, 2023:

Unobservable Inputs

Valuation Technique

Unobservable Inputs

Range of Inputs

Individually evaluated loans

Appraised Value/Discounted Cash Flows

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

0 to 25%

Schedule of Fair Value Measurements, Recurring and Nonrecurring


	March 31, 2024				December 31, 2023
(in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Level 1
Cash and due from banks	$	12,361	$	12,361	$	14,513	$	14,513
Interest-bearing deposits at other financial institutions	72,787		72,787		39,044		39,044

Federal funds sold	56		56		407		407
Level 3

Portfolio loans receivable, net	$	1,935,175	$	1,902,408	$	1,874,678	$	1,855,158

Restricted investments	4,441		4,441		4,353		4,353

Financial liabilities
Level 1
Noninterest-bearing deposits	$	665,812	$	665,812	$	617,373	$	617,373

Level 3
Interest-bearing deposits	$	1,339,883	$	1,339,795	$	1,278,623	$	1,280,682
FHLB advances and other borrowed funds	34,062		31,620		49,062		46,634

Investment Securities (Tables)

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Amortized Cost and Estimated Fair Value of Investment


(in thousands)
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
March 31, 2024
U.S. Treasuries	$	141,347	$	—	$	(12,664)	$	—	$	128,683

Municipal	11,699		—		(2,445)		—		9,254
Corporate	5,000		—		(543)		—		4,457
Asset-backed securities	6,601		18		(38)		—		6,581
Mortgage-backed securities	55,546		—		(2,267)		—		53,279
Total	$	220,193	$	18	$	(17,957)	$	—	$	202,254

December 31, 2023
U.S. Treasuries	$	161,420	$	—	$	(12,192)	$	—	$	149,228

Municipal	11,699		4		(2,331)		—		9,372
Corporate	5,000		—		(587)		—		4,413
Asset-backed securities	7,069		13		(37)		—		7,045
Mortgage-backed securities	40,491		—		(2,220)		—		38,271
Total	$	225,679	$	17	$	(17,367)	$	—	$	208,329

Schedule of Investments Classified by Contractual Maturity Date


	March 31, 2024				December 31, 2023
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	29,962	$	29,211	$	39,918	$	39,294
One to five years	91,580		83,076		101,688		93,218
Five to ten years	28,661		24,132		26,215		22,511
Beyond ten years	7,843		5,975		10,298		7,990
Asset-backed securities(1)	6,601		6,581		7,069		7,045
Mortgage-backed securities(1)	55,546		53,279		40,491		38,271
Total	$	220,193	$	202,254	$	225,679	$	208,329

_______________

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

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


	Less than 12 months				12 months or longer				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2024
U.S. Treasuries	$	—	$	—	$	128,683	$	(12,664)	$	128,683	$	(12,664)
Municipal	894		(3)		8,360		(2,442)		9,254		(2,445)
Corporate	—		—		4,457		(543)		4,457		(543)
Asset-backed securities	—		—		4,760		(38)		4,760		(38)
Mortgage-backed securities	21,234		(194)		32,045		(2,073)		53,279		(2,267)
Total	$	22,128	$	(197)	$	178,305	$	(17,760)	$	200,433	$	(17,957)

December 31, 2023
U.S. Treasuries	$	—	$	—	$	149,228	$	(12,192)	$	149,228	$	(12,192)

Municipal	—		—		8,473		(2,331)		8,473		(2,331)
Corporate	—		—		4,413		(587)		4,413		(587)
Asset-backed securities	—		—		5,154		(37)		5,154		(37)
Mortgage-backed securities	6,057		(8)		32,214		(2,212)		38,271		(2,220)
Total	$	6,057	$	(8)	$	199,482	$	(17,359)	$	205,539	$	(17,367)

Portfolio Loans Receivable and Allowance for Credit Losses

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Portfolio Loans Receivable and Allowance for Credit Losses

Note 5 - Portfolio Loans Receivable and Allowance for Credit Losses

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



	March 31, 2024				December 31, 2023
(in thousands)	Amount		Percent		Amount		Percent
Real estate:
Residential	$	577,112	29	%	$	573,104	30	%
Commercial	736,316		37	%	684,229		35	%
Construction	290,016		15	%	290,108		15	%
Commercial and Industrial	254,577		13	%	239,208		13	%
Credit card, net of reserve(1)	111,898		6	%	123,331		7	%
Other consumer	738		—	%	950		—	%
Portfolio loans receivable, gross	1,970,657		100	%	1,910,930		100	%
Deferred origination fees, net	(6,132)				(7,642)
Allowance for credit losses	(29,350)				(28,610)
Portfolio loans receivable, net	$	1,935,175			$	1,874,678

_____________

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

The following tables set forth the changes in the ACL and an allocation of the ACL by loan segment class for the three months ended March 31, 2024 and March 31, 2023.


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













Three Months Ended March 31, 2023
Real estate:
Residential	$	4,283	$	1,125	$	—	$	—	$	5,408
Commercial	12,039		(2,165)		(943)		—		8,931
Construction	1,809		(56)		—		—		1,753
Commercial and Industrial	4,008		940		—		10		4,958
Credit card	5,033		1,818		(1,702)		2		5,151
Other consumer	17		(2)		—		—		15
Total	$	27,189	$	1,660	$	(2,645)	$	12	$	26,216

Past due loans, segregated by age and class of loans, as of March 31, 2024 and December 31, 2023 were as follows:


Portfolio Loans Past Due
	Loans 30-59 Days Past Due		Loans 60-89 Days Past Due		Loans 90 or More Days Past Due		Total Past Due Loans		Current Loans		Total Portfolio Loans		Accruing Loans 90 or More Days Past Due		Nonaccrual Loans
(in thousands)
March 31, 2024
Real estate:
Residential	$	2,479	$	818	$	6,303	$	9,600	$	567,512	$	577,112	$	—	$	6,762
Commercial	1,391		11,610		551		13,552		722,764		736,316		—		3,064
Construction	—		661		3,876		4,537		285,479		290,016		—		3,868
Commercial and Industrial	2,008		1,353		448		3,809		250,768		254,577		—		667
Credit card	5,544		5,494		621		11,659		100,239		111,898		621		—
Other consumer	—		—		—		—		738		738		—		—
Total	$	11,422	$	19,936	$	11,799	$	43,157	$	1,927,500	$	1,970,657	$	621	$	14,361



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

December 31, 2023

Real estate:
Residential	$	2,201	$	3,096	$	11,066	$	16,363	$	556,741	$	573,104	$	17	$	11,398
Commercial	1,577		322		582		2,481		681,748		684,229		—		582
Construction	—		1,165		3,296		4,461		285,647		290,108		—		3,288
Commercial and Industrial	1,356		74		454		1,884		237,324		239,208		—		774
Credit card	7,767		6,877		519		15,163		108,168		123,331		519		—
Other consumer	—		—		—		—		950		950		—		—
Total	$	12,901	$	11,534	$	15,917	$	40,352	$	1,870,578	$	1,910,930	$	536	$	16,042

There were $2.4 million and $8.1 million of loans secured by one-to-four family residential properties in the process of foreclosure as of March 31, 2024 and December 31, 2023, respectively.

The increase in loans 60-89 days past due and special mention loan levels at March 31, 2024 from December 31, 2023 includes a single owner-occupied commercial real estate loan relationship with a total outstanding exposure amount of $11.6 million. The borrower fell behind in payments due to unexpected timing delays in the collection of outstanding receivables. Payments have resumed and the borrower remains actively engaged with the Company in resolving the past due status.

The following presents the nonaccrual loans as of March 31, 2024 and December 31, 2023:


	March 31, 2024
	Nonaccrual with No Allowance for Credit Loss		Nonaccrual with an Allowance for Credit Loss		Total Nonaccrual Loans		Interest Recognized on Nonaccrual Loans
(in thousands)

Real estate:
Residential	$	6,111	$	651	$	6,762	$	221
Commercial	3,064		—		3,064		93
Construction	3,868		—		3,868		180
Commercial and Industrial	439		228		667		56


Total	$	13,482	$	879	$	14,361	$	550

	December 31, 2023
	Nonaccrual with No Allowance for Credit Loss		Nonaccrual with an Allowance for Credit Loss		Total Nonaccrual Loans		Interest Recognized on Nonaccrual Loans


Real estate:
Residential	$	11,152	$	246	$	11,398	$	236
Commercial	582		—		582		46
Construction	3,288		—		3,288		185
Commercial and Industrial	598		176		774		71
Total	$	15,620	$	422	$	16,042	$	538

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

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

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

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

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


Collateral dependent loans amortized cost
(in thousands)	March 31, 2024		December 31, 2023
Real estate:
Residential	$	5,345	$	11,152
Commercial	3,064		582
Construction	5,038		3,288
Commercial and Industrial	537		657

Total	$	13,984	$	15,679

Of the collateral dependent loans as of March 31, 2024, a specific reserve of $405 thousand and $150 thousand was assessed for residential real estate and commercial and industrial loans, respectively. Of the collateral dependent loans as of December 31, 2023, a specific reserve of $115 thousand was assessed for commercial and industrial loans. The Company had no modifications on loans to borrowers experiencing financial difficulty during the three months ended March 31, 2024 or the three months ended March 31, 2023.

Credit quality indicators

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

A description of the general characteristics of loans characterized as classified is as follows:

Pass

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

Special mention

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

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

Substandard

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

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

Doubtful

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


March 31, 2024	Term Loans by Origination Year
(in thousands)	2024		2023		2022		2021		2020		Prior		Revolving		Total
Residential – Real estate
Pass	$	29,966	$	134,102	$	132,476	$	76,409	$	75,128	$	117,615	$	—	$	565,696
Special Mention	—		—		—		132		3,647		285		—		4,064
Substandard	—		—		33		332		—		6,987		—		7,352
Doubtful	—		—		—		—		—		—		—		—
Total	29,966		134,102		132,509		76,873		78,775		124,887		—		577,112
Commercial – Real estate
Pass	52,595		63,615		172,972		141,121		77,031		208,492		—		715,826
Special Mention	—		—		18,495		—		—		801		—		19,296
Substandard	—		—		—		—		—		1,194		—		1,194
Doubtful	—		—		—		—		—		—		—		—
Total	52,595		63,615		191,467		141,121		77,031		210,487		—		736,316
Construction – Real estate
Pass	16,217		144,267		59,095		41,338		15,234		8,981		—		285,132
Special Mention	—		661		—		—		—		—		—		661
Substandard	—		—		—		—		1,568		2,655		—		4,223
Doubtful	—		—		—		—		—		—		—		—
Total	16,217		144,928		59,095		41,338		16,802		11,636		—		290,016
Commercial and Industrial
Pass	24,939		71,139		66,282		27,157		8,436		51,796		—		249,749
Special Mention	—		—		805		—		2,367		312		—		3,484
Substandard	—		46		619		207		—		472		—		1,344
Doubtful	—		—		—		—		—		—		—		—
Total	24,939		71,185		67,706		27,364		10,803		52,580		—		254,577
Other consumer
Pass	—		—		262		134		111		231		—		738
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total	—		—		262		134		111		231		—		738
Credit card
Ungraded	—		—		—		—		—		—		111,898		111,898
Portfolio loans receivable, gross	$	123,717	$	413,830	$	451,039	$	286,830	$	183,522	$	399,821	$	111,898	$	1,970,657


March 31, 2024
(in thousands)	2024		2023		2022		2021		2020		Prior		Revolving		Total
Gross Charge-offs
Residential	$	—	$	—	$	—	$	—	$	—	$	225	$	—	$	225
Commercial and Industrial	—		98		—		—		—		—		—		98
Credit card	—		—		—		—		—		—		1,768		1,768
Total	$	—	$	98	$	—	$	—	$	—	$	225	$	1,768	$	2,091


December 31, 2023	Term Loans by Origination Year
(in thousands)	2023		2022		2021		2020		2019		Prior		Revolving		Total
Residential – Real estate
Pass	$	140,394	$	137,362	$	76,556	$	76,938	$	36,122	$	88,055	$	—	$	555,427
Special Mention	—		—		134		3,670		1,176		288		—		5,268
Substandard	—		33		—		—		26		12,350		—		12,409
Doubtful	—		—		—		—		—		—		—		—
Total	140,394		137,395		76,690		80,608		37,324		100,693		—		573,104
Commercial – Real estate
Pass	62,095		185,776		145,756		68,748		96,238		116,347		—		674,960
Special Mention	—		6,897		—		—		805		985		—		8,687
Substandard	—		—		—		—		582		—		—		582
Doubtful	—		—		—		—		—		—		—		—
Total	62,095		192,673		145,756		68,748		97,625		117,332		—		684,229
Construction – Real estate
Pass	142,157		72,240		46,180		16,859		6,246		2,517		—		286,199
Special Mention	—		—		—		—		—		614		—		614
Substandard	—		—		—		1,254		597		1,444		—		3,295
Doubtful	—		—		—		—		—		—		—		—
Total	142,157		72,240		46,180		18,113		6,843		4,575		—		290,108
Commercial and Industrial
Pass	70,540		71,689		28,007		9,364		18,036		37,392		—		235,028
Special Mention	—		156		—		2,406		47		273		—		2,882
Substandard	30		814		211		—		42		201		—		1,298
Doubtful	—		—		—		—		—		—		—		—
Total	70,570		72,659		28,218		11,770		18,125		37,866		—		239,208
Other consumer
Pass	75		278		147		116		—		334		—		950
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total	75		278		147		116		—		334		—		950
Credit card
Ungraded	—		—		—		—		—		—		123,331		123,331
Portfolio loans receivable, gross	$	415,291	$	475,245	$	296,991	$	179,355	$	159,917	$	260,800	$	123,331	$	1,910,930


December 31, 2023
(in thousands)	2023		2022		2021		2020		2019		Prior		Revolving		Total
Gross Charge-offs
Residential	$	—	$	—	$	—	$	—	$	—	$	670	$	—	$	670
Commercial	—		—		—		—		943		—		—		943
Commercial and Industrial	—		98		—		—		—		—		—		98
Credit card	—		—		—		—		—		—		7,076		7,076
Total	$	—	$	98	$	—	$	—	$	943	$	670	$	7,076	$	8,787

Outstanding loan commitments were as follows:


(in thousands)	March 31, 2024		December 31, 2023
Unused lines of credit
Real Estate:
Residential	$	17,812	$	15,436
Residential - Home Equity	43,225		43,892
Commercial	29,542		20,424
Construction	116,614		98,777
Commercial and Industrial	52,627		42,751
Credit card(1)	128,374		114,882
Other consumer	311		310
Total	$	388,505	$	336,472



Letters of credit	$	4,641	$	4,641

_______________

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

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

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


	Three months ended
(in thousands)	March 31, 2024		March 31, 2023
Balance at beginning of period	$	806	$	1,682
Impact of adopting the CECL standard on January 1, 2023	—		(775)
Provision for (release of) credit losses on unfunded commitments	142		(19)


Balance at end of period	$	948	$	888

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

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


	Three months ended
(in thousands)	March 31, 2024		March 31, 2023
Balance at beginning of period	$	985	$	1,174
Provision for mortgage loan put-back reserve	13		5


Balance at end of period	$	998	$	1,179

Fair Value - Impaired Loans and Foreclosed Real Estate (Details) - Level 3 - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Minimum
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%
Maximum
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%
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually evaluated loans for credit loss, net	$ 13,481,000	$ 15,620,000
Foreclosed real estate	0	0
Valuation Technique, Discounted Cash Flow \| Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually evaluated loans for credit loss, net	14,400,000	16,000,000
Specific reserves	$ 879,000	$ 422,000

Portfolio Loans Receivable and Allowance for Credit Losses - Past Due Financing Receivable (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	$ 1,970,657	$ 1,910,930
Accruing Loans 90 or More Days Past Due	621	536
Nonaccrual Loans	14,361	16,042
Residential Real Estate
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	2,400	8,100
Loans 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	11,422	12,901
Loans 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	19,936	11,534
Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	11,799	15,917
Total Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	43,157	40,352
Current Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	1,927,500	1,870,578
Residential \| Real estate:
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	577,112	573,104
Accruing Loans 90 or More Days Past Due	0	17
Nonaccrual Loans	6,762	11,398
Residential \| Real estate: \| Loans 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	2,479	2,201
Residential \| Real estate: \| Loans 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	818	3,096
Residential \| Real estate: \| Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	6,303	11,066
Residential \| Real estate: \| Total Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	9,600	16,363
Residential \| Real estate: \| Current Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	567,512	556,741
Commercial \| Loans 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivables, outstanding exposure amount	11,600
Commercial \| Real estate:
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	736,316	684,229
Accruing Loans 90 or More Days Past Due	0	0
Nonaccrual Loans	3,064	582
Commercial \| Real estate: \| Loans 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	1,391	1,577
Commercial \| Real estate: \| Loans 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	11,610	322
Commercial \| Real estate: \| Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	551	582
Commercial \| Real estate: \| Total Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	13,552	2,481
Commercial \| Real estate: \| Current Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	722,764	681,748
Construction \| Real estate:
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	290,016	290,108
Accruing Loans 90 or More Days Past Due	0	0
Nonaccrual Loans	3,868	3,288
Construction \| Real estate: \| Loans 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	0	0
Construction \| Real estate: \| Loans 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	661	1,165
Construction \| Real estate: \| Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	3,876	3,296
Construction \| Real estate: \| Total Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	4,537	4,461
Construction \| Real estate: \| Current Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	285,479	285,647
Commercial and Industrial
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	254,577	239,208
Accruing Loans 90 or More Days Past Due	0	0
Nonaccrual Loans	667	774
Commercial and Industrial \| Loans 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	2,008	1,356
Commercial and Industrial \| Loans 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	1,353	74
Commercial and Industrial \| Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	448	454
Commercial and Industrial \| Total Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	3,809	1,884
Commercial and Industrial \| Current Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	250,768	237,324
Consumer \| Credit card, net of reserve
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	111,898	123,331
Accruing Loans 90 or More Days Past Due	621	519
Nonaccrual Loans	0	0
Consumer \| Credit card, net of reserve \| Loans 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	5,544	7,767
Consumer \| Credit card, net of reserve \| Loans 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	5,494	6,877
Consumer \| Credit card, net of reserve \| Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	621	519
Consumer \| Credit card, net of reserve \| Total Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	11,659	15,163
Consumer \| Credit card, net of reserve \| Current Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	100,239	108,168
Consumer \| Other consumer
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	738	950
Accruing Loans 90 or More Days Past Due	0	0
Nonaccrual Loans	0	0
Consumer \| Other consumer \| Loans 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	0	0
Consumer \| Other consumer \| Loans 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	0	0
Consumer \| Other consumer \| Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	0	0
Consumer \| Other consumer \| Total Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	0	0
Consumer \| Other consumer \| Current Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross amount	$ 738	$ 950

Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities
Net income	$ 6,562	$ 9,735
Adjustments to reconcile net income to net cash (used for) provided by operating activities:
Provision for credit losses	2,727	1,660
Provision for (reversal of) credit losses on unfunded commitments	142	(19)
Provision for mortgage put-back reserve, net	13	5
Net amortization (accretion) on investments	60	(34)
Premises and equipment depreciation	85	73
Lease asset amortization	238	266
Increase in cash surrender value of BOLI	(351)	(257)
Executive long-term incentive plan expense	149	152
Stock-based compensation expense	472	438
Director and employee compensation paid in Company stock	515	547
Deferred income tax benefit	(7)	(65)
Gain on sale of securities available for sale	0	1
Valuation allowance on derivatives	0	9
Increase in valuation of loans held for sale carried at fair value	0	6
Proceeds from sales of loans held for sale	37,555	42,238
Originations of loans held for sale	(40,377)	(44,448)
Changes in assets and liabilities:
Accrued interest receivable	(764)	(496)
Taxes payable	489	2,927
Accounts receivable	(10,582)	(105)
Other assets	1,697	191
Accrued interest payable	426	946
Other liabilities	(2,461)	(3,414)
Net cash (used for) provided by operating activities	(3,412)	10,356
Cash flows from investing activities
Purchases of securities available for sale	(15,362)	0
Proceeds from calls and maturities of securities available for sale	20,788	490
Net (purchases) sales of restricted investments	(88)	3,147
Net increase in portfolio loans receivable	(63,224)	(60,023)
Net sales (purchases) of premises and equipment	246	(2,320)
Net cash used in investing activities	(57,640)	(58,706)
Net increase (decrease) in:
Noninterest-bearing deposits	48,439	31,488
Interest-bearing deposits	61,260	154,814
Federal Home Loan Bank repayments	0	(75,000)
Other borrowed funds	(15,000)	0
Dividends paid	(1,115)	(850)
Repurchase of common stock	(1,399)	(2,719)
Net proceeds from exercise of stock options	107	589
Net cash provided by financing activities	92,292	108,322
Net increase in cash and cash equivalents	31,240	59,972
Cash and cash equivalents, beginning of year	53,964	80,415
Cash and cash equivalents, end of period	85,204	140,387
Noncash investing and financing activities:
Change in unrealized (losses) gains on investments	(589)	3,736
Cash paid during the period for:
Taxes	36	35
Interest	$ 12,935	$ 5,920

Cash and Cash Equivalents	3 Months Ended
Cash and Cash Equivalents	Mar. 31, 2024
Cash and Cash Equivalents [Abstract]
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash and amounts 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; however, on March 15, 2020, the Federal Reserve announced that, due to economic conditions, reserve requirement ratios for all depository institutions would be reduced to zero percent effective March 26, 2020. The reserve requirement is still at zero percent as of March 31, 2024.

Consolidated Statements of Changes in Stockholders' Equity (unaudited) - USD ($) $ in Thousands	Total	Cumulative effect adjustment due to adoption of the CECL standard	Common Stock	Additional Paid-in Capital	Retained Earnings	Retained Earnings Cumulative effect adjustment due to adoption of the CECL standard	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2022			14,138,829
Beginning balance at Dec. 31, 2022	$ 224,015	$ (29)	$ 141	$ 58,190	$ 182,435	$ (29)	$ (16,751)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	9,735				9,735
Unrealized gain (loss) on investment securities available for sale, net of income taxes	2,792						2,792
Stock options exercised, net of shares withheld for purchase price (in shares)			63,064
Stock options exercised, net of shares withheld for purchase price	589		$ 1	782	(194)
Shares issued as compensation (in shares)			28,081
Shares issued as compensation	546			585	(39)
Stock-based compensation	438			438
Cash dividends to stockholders	(850)				(850)
Shares repurchased and retired (in shares)			(146,937)
Shares repurchased and retired	(2,719)		$ (1)	(2,718)
Ending balance (in shares) at Mar. 31, 2023			14,083,037
Ending balance at Mar. 31, 2023	$ 234,517		$ 141	57,277	191,058		(13,959)
Beginning balance (in shares) at Dec. 31, 2023	13,922,532
Beginning balance at Dec. 31, 2023	$ 254,860		$ 139	54,473	213,345		(13,097)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	6,562				6,562
Unrealized gain (loss) on investment securities available for sale, net of income taxes	(537)						(537)
Stock options exercised, net of shares withheld for purchase price (in shares)			10,171
Stock options exercised, net of shares withheld for purchase price	107			146	(39)
Shares issued as compensation (in shares)			24,729
Shares issued as compensation	515			537	(22)
Stock-based compensation	472			472
Cash dividends to stockholders	(1,115)				(1,115)
Shares repurchased and retired (in shares)			(67,869)
Shares repurchased and retired	$ (1,399)			(1,399)
Ending balance (in shares) at Mar. 31, 2024	13,889,563		13,889,563
Ending balance at Mar. 31, 2024	$ 259,465		$ 139	$ 54,229	$ 218,731		$ (13,634)

Nature of Business and Basis of Presentation - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) segment	Dec. 31, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Loans outstanding	$ 1,935,175	$ 1,874,678
Allowance for credit losses	$ 29,350	$ 28,610	$ 26,216	$ 27,189
Number of reportable segments \| segment	4
Church Street Capital
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Loans outstanding	$ 7,600
Allowance for credit losses	$ 184

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(01)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(02)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(03)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
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+ Details

Pending Acquisition (Details) - USD ($) $ in Thousands	3 Months Ended
Pending Acquisition (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Business Acquisition [Line Items]
Assets	$ 2,324,238	$ 2,245,286	$ 2,226,176
Merger-related expenses	712	$ 0
IFHI
Business Acquisition [Line Items]
Merger-related expenses	$ 700
IFHI
Business Acquisition [Line Items]
Assets			$ 548,000

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

+ References

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+ Details

Portfolio Loans Receivable and Allowance for Credit Losses - Outstanding Loan Commitments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross amount	$ 1,970,657	$ 1,910,930
Residential \| Real estate:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross amount	577,112	573,104
Commercial \| Real estate:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross amount	736,316	684,229
Construction \| Real estate:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross amount	290,016	290,108
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross amount	254,577	239,208
Consumer \| Credit card
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross amount	111,898	123,331
Consumer \| Credit card \| Savings Deposits
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross amount	108,400	98,200
Consumer \| Other consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross amount	738	950
Commitments to Extend Credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	388,505	336,472
Letters of credit	4,641	4,641
Commitments to Extend Credit \| Residential \| Real estate:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	17,812	15,436
Commitments to Extend Credit \| Residential \| Residential - Home Equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	43,225	43,892
Commitments to Extend Credit \| Commercial \| Real estate:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	29,542	20,424
Commitments to Extend Credit \| Construction \| Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	116,614	98,777
Commitments to Extend Credit \| Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	52,627	42,751
Commitments to Extend Credit \| Consumer \| Credit card
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	128,374	114,882
Commitments to Extend Credit \| Consumer \| Other consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	$ 311	$ 310

Leases - Assets and Liabilities and Lease Payment Obligations (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Leases [Abstract]
Lease asset	$ 6,474	$ 6,810
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Premises and equipment, net	Premises and equipment, net
Less: Accumulated amortization	$ (3,461)	$ (3,223)
Net lease asset	3,013	3,587
Lease liability	$ 6,891	$ 6,892
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities
Less: Accumulated amortization	$ (3,397)	$ (3,101)
Net lease liability	3,494	3,791
Amounts due in:
2024	827
2025	715
2026	665
2027	396
2028	266
2029 and thereafter	1,182
Total future lease payments	4,051
Discount of cash flows	(557)
Present value of net future lease payments	$ 3,494	$ 3,791

Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 6,562	$ 9,735
Other comprehensive (loss) income:
Unrealized (loss) gain on investment securities available for sale	(589)	3,736
Income tax benefit (expense) relating to the items above	52	(944)
Other comprehensive (loss) income	(537)	2,792
Comprehensive income	$ 6,025	$ 12,527

- Definition

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

+ References

+ Details

Portfolio Loans Receivable and Allowance for Credit Losses - Classification of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross amount	$ 1,970,657	$ 1,910,930
Loans receivable, gross percent	100.00%	100.00%
Deferred origination fees, net	$ (6,132)	$ (7,642)
Allowance for credit losses	(29,350)	(28,610)	$ (26,216)	$ (27,189)
Total portfolio loans held for investment, net	1,935,175	1,874,678
Residential \| Real estate:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross amount	$ 577,112	$ 573,104
Loans receivable, gross percent	29.00%	30.00%
Allowance for credit losses	$ (5,926)	$ (5,518)	(5,408)	(4,283)
Commercial \| Real estate:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross amount	$ 736,316	$ 684,229
Loans receivable, gross percent	37.00%	35.00%
Allowance for credit losses	$ (11,123)	$ (10,316)	(8,931)	(12,039)
Construction \| Real estate:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross amount	$ 290,016	$ 290,108
Loans receivable, gross percent	15.00%	15.00%
Allowance for credit losses	$ (2,299)	$ (2,271)	(1,753)	(1,809)
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross amount	$ 254,577	$ 239,208
Loans receivable, gross percent	13.00%	13.00%
Allowance for credit losses	$ (4,002)	$ (4,406)	(4,958)	(4,008)
Consumer \| Credit card, net of reserve
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross amount	$ 111,898	$ 123,331
Loans receivable, gross percent	6.00%	7.00%
Allowance for credit losses	$ (5,990)	$ (6,087)	(5,151)	(5,033)
Consumer \| Other consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross amount	$ 738	$ 950
Loans receivable, gross percent	0.00%	0.00%
Allowance for credit losses	$ (10)	$ (12)	$ (15)	$ (17)

Segments

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segments

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

Effective January 1, 2024, the Company allocated certain expenses previously recorded directly to the Commercial Bank segment to the other segments. These expenses are for shared services also consumed by OpenSky™, CBHL, and Corporate. The Company performs an allocation process based on several metrics the Company believes more accurately ascribe shared service overhead to each segment. The Company believes this reflects the cost of support for each segment that should be considered in assessing segment performance. Historical information has been recast to reflect financial information consistently with the 2024 presentation.

The following schedule presents financial information for each reportable segment at March 31, 2024 and March 31, 2023.


For the Three Months Ended March 31, 2024
(in thousands)	Commercial Bank		CBHL		OpenSky™		Corporate(2)		Eliminations		Consolidated
Interest income	$	32,529	$	83	$	14,921	$	899	$	(63)	$	48,369
Interest expense	13,154		41		—		229		(63)		13,361
Net interest income	19,375		42		14,921		670		—		35,008
Provision for credit losses	1,109		—		1,559		59		—		2,727
Provision for credit losses on unfunded commitments	142		—		—		—		—		142
Net interest income after provision	18,124		42		13,362		611		—		32,139
Noninterest income	704		1,352		3,915		1		—		5,972
Noninterest expense(1)	12,259		2,105		13,599		1,524		—		29,487
Net income (loss) before taxes	$	6,569	$	(711)	$	3,678	$	(912)	$	—	$	8,624

Total assets	$	2,160,051	$	10,785	$	105,318	$	281,766	$	(233,682)	$	2,324,238

For the Three Months Ended March 31, 2023
Interest income	$	26,300	$	77	$	16,130	$	978	$	(69)	$	43,416
Interest expense	8,739		30		—		229		(69)		8,929
Net interest income	17,561		47		16,130		749		—		34,487
(Release of) provision for credit losses	(161)		—		1,821		—		—		1,660
Release of credit losses on unfunded commitments	(19)		—		—		—		—		(19)
Net interest income after provision	17,741		47		14,309		749		—		32,846
Noninterest income	489		1,327		4,210		—		—		6,026
Noninterest expense(1)	11,759		2,336		11,738		389		—		26,222
Net income (loss) before taxes	$	6,471	$	(962)	$	6,781	$	360	$	—	$	12,650

Total assets	$	2,074,634	$	10,193	$	106,761	$	257,048	$	(203,350)	$	2,245,286

(1) Noninterest expense includes $6.1 million and $5.9 million in data processing expense in OpenSky’s™ segment for the three months ended March 31, 2024 and 2023, respectively.

(2) The Corporate segment invests idle cash in revenue producing assets including interest-bearing cash accounts, loan participations and other appropriate investments for the Company.

- 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
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Fair Value - Financial Instruments Carrying Amount, FV and Placement (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financial assets
Cash and due from banks	$ 12,361	$ 14,513
Interest-bearing deposits at other financial institutions	72,787	39,044
Federal funds sold	56	407
Carrying Amount \| Level 1
Financial assets
Cash and due from banks	12,361	14,513
Interest-bearing deposits at other financial institutions	72,787	39,044
Federal funds sold	56	407
Financial liabilities
Noninterest-bearing deposits	665,812	617,373
Carrying Amount \| Level 3
Financial assets
Portfolio loans receivable, net	1,935,175	1,874,678
Restricted investments	4,441	4,353
Financial liabilities
Interest-bearing deposits	1,339,883	1,278,623
FHLB advances and other borrowed funds	34,062	49,062
Fair Value \| Level 1
Financial assets
Cash and due from banks	12,361	14,513
Interest-bearing deposits at other financial institutions	72,787	39,044
Federal funds sold	56	407
Financial liabilities
Noninterest-bearing deposits	665,812	617,373
Fair Value \| Level 3
Financial assets
Portfolio loans receivable, net	1,902,408	1,855,158
Restricted investments	4,441	4,353
Financial liabilities
Interest-bearing deposits	1,339,795	1,280,682
FHLB advances and other borrowed funds	$ 31,620	$ 46,634

Pending Acquisition	3 Months Ended
Pending Acquisition	Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]
Pending Acquisition	Note 2 - Pending Acquisition Pending Acquisition of Integrated Financial Holdings, Inc. On March 27, 2024, the Company and Integrated Financial Holdings, Inc., a North Carolina corporation (“IFHI”), entered into an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”). The Merger Agreement provides that, upon the terms and conditions thereof, IFHI will merge with and into the Company (the “Merger”), with the Company continuing as the surviving corporation in the Merger. IFHI is a financial holding company based in Raleigh, North Carolina with total assets of approximately $548 million at December 31, 2023. IFHI is the holding company for West Town Bank & Trust, an Illinois state-chartered bank. West Town Bank & Trust provides banking services through its full-service office located in the greater Chicago area and is a nationwide lender in government guaranteed lending across both U.S. Department of Agriculture (“USDA”) and U.S. Small Business Administration (“SBA”) government guaranteed lending. IFHI is also the parent company of Windsor Advantage, LLC, a loan service provider that offers community banks and credit unions with a comprehensive outsourced SBA 7(a) and USDA lending platform. IFHI is registered with and supervised by the Board of Governors of the Federal Reserve (“Federal Reserve”). West Town Bank & Trust’s primary regulators are the Illinois Department of Financial and Professional Regulation and the FDIC. Following the Merger, West Town Bank & Trust, will merge with and into the Bank, with the Bank as the surviving bank. During the three months ended March 31, 2024, the Company incurred merger-related expenses related to the planned acquisition of IFHI totaling $0.7 million. The Merger is expected to close in the fourth quarter 2024 subject to regulatory approval.

Segments (Tables)

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following schedule presents financial information for each reportable segment at March 31, 2024 and March 31, 2023.


For the Three Months Ended March 31, 2024
(in thousands)	Commercial Bank		CBHL		OpenSky™		Corporate(2)		Eliminations		Consolidated
Interest income	$	32,529	$	83	$	14,921	$	899	$	(63)	$	48,369
Interest expense	13,154		41		—		229		(63)		13,361
Net interest income	19,375		42		14,921		670		—		35,008
Provision for credit losses	1,109		—		1,559		59		—		2,727
Provision for credit losses on unfunded commitments	142		—		—		—		—		142
Net interest income after provision	18,124		42		13,362		611		—		32,139
Noninterest income	704		1,352		3,915		1		—		5,972
Noninterest expense(1)	12,259		2,105		13,599		1,524		—		29,487
Net income (loss) before taxes	$	6,569	$	(711)	$	3,678	$	(912)	$	—	$	8,624

Total assets	$	2,160,051	$	10,785	$	105,318	$	281,766	$	(233,682)	$	2,324,238

For the Three Months Ended March 31, 2023
Interest income	$	26,300	$	77	$	16,130	$	978	$	(69)	$	43,416
Interest expense	8,739		30		—		229		(69)		8,929
Net interest income	17,561		47		16,130		749		—		34,487
(Release of) provision for credit losses	(161)		—		1,821		—		—		1,660
Release of credit losses on unfunded commitments	(19)		—		—		—		—		(19)
Net interest income after provision	17,741		47		14,309		749		—		32,846
Noninterest income	489		1,327		4,210		—		—		6,026
Noninterest expense(1)	11,759		2,336		11,738		389		—		26,222
Net income (loss) before taxes	$	6,471	$	(962)	$	6,781	$	360	$	—	$	12,650

Total assets	$	2,074,634	$	10,193	$	106,761	$	257,048	$	(203,350)	$	2,245,286

(1) Noninterest expense includes $6.1 million and $5.9 million in data processing expense in OpenSky’s™ segment for the three months ended March 31, 2024 and 2023, respectively.

(2) The Corporate segment invests idle cash in revenue producing assets including interest-bearing cash accounts, loan participations and other appropriate investments for the Company.

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2024	May 08, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-38671
Entity Registrant Name	CAPITAL BANCORP INC
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	52-2083046
Entity Address, Address Line One	2275 Research Boulevard
Entity Address, Address Line Two	Suite 600
Entity Address, City or Town	Rockville
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	20850
City Area Code	301
Local Phone Number	468-8848
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	CBNK
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		13,892,251
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001419536
Current Fiscal Year End Date	--12-31

Portfolio Loans Receivable and Allowance for Credit Losses - Credit Quality Indicators and Charge-offs (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Term Loans by Origination Year
Current year	$ 123,717		$ 415,291
One year before current year	413,830		475,245
Two years before current year	451,039		296,991
Three years before current year	286,830		179,355
Four years before current year	183,522		159,917
Prior	399,821		260,800
Revolving	111,898		123,331
Total	1,970,657		1,910,930
Gross Charge-offs
Current year	0		0
One year before current year	98		98
Two years before current year	0		0
Three years before current year	0		0
Four years before current year	0		943
Prior	225		670
Revolving	1,768		7,076
Total	2,091	$ 2,645	8,787
Residential
Gross Charge-offs
Current year	0		0
One year before current year	0		0
Two years before current year	0		0
Three years before current year	0		0
Four years before current year	0		0
Prior	225		670
Revolving	0		0
Total	225		670
Residential \| Real estate:
Term Loans by Origination Year
Current year	29,966		140,394
One year before current year	134,102		137,395
Two years before current year	132,509		76,690
Three years before current year	76,873		80,608
Four years before current year	78,775		37,324
Prior	124,887		100,693
Revolving	0		0
Total	577,112		573,104
Gross Charge-offs
Total	225	0
Residential \| Real estate: \| Pass
Term Loans by Origination Year
Current year	29,966		140,394
One year before current year	134,102		137,362
Two years before current year	132,476		76,556
Three years before current year	76,409		76,938
Four years before current year	75,128		36,122
Prior	117,615		88,055
Revolving	0		0
Total	565,696		555,427
Residential \| Real estate: \| Special Mention
Term Loans by Origination Year
Current year	0		0
One year before current year	0		0
Two years before current year	0		134
Three years before current year	132		3,670
Four years before current year	3,647		1,176
Prior	285		288
Revolving	0		0
Total	4,064		5,268
Residential \| Real estate: \| Substandard
Term Loans by Origination Year
Current year	0		0
One year before current year	0		33
Two years before current year	33		0
Three years before current year	332		0
Four years before current year	0		26
Prior	6,987		12,350
Revolving	0		0
Total	7,352		12,409
Residential \| Real estate: \| Doubtful
Term Loans by Origination Year
Current year	0		0
One year before current year	0		0
Two years before current year	0		0
Three years before current year	0		0
Four years before current year	0		0
Prior	0		0
Revolving	0		0
Total	0		0
Commercial
Gross Charge-offs
Current year			0
One year before current year			0
Two years before current year			0
Three years before current year			0
Four years before current year			943
Prior			0
Revolving			0
Total			943
Commercial \| Real estate:
Term Loans by Origination Year
Current year	52,595		62,095
One year before current year	63,615		192,673
Two years before current year	191,467		145,756
Three years before current year	141,121		68,748
Four years before current year	77,031		97,625
Prior	210,487		117,332
Revolving	0		0
Total	736,316		684,229
Gross Charge-offs
Total	0	943
Commercial \| Real estate: \| Pass
Term Loans by Origination Year
Current year	52,595		62,095
One year before current year	63,615		185,776
Two years before current year	172,972		145,756
Three years before current year	141,121		68,748
Four years before current year	77,031		96,238
Prior	208,492		116,347
Revolving	0		0
Total	715,826		674,960
Commercial \| Real estate: \| Special Mention
Term Loans by Origination Year
Current year	0		0
One year before current year	0		6,897
Two years before current year	18,495		0
Three years before current year	0		0
Four years before current year	0		805
Prior	801		985
Revolving	0		0
Total	19,296		8,687
Commercial \| Real estate: \| Substandard
Term Loans by Origination Year
Current year	0		0
One year before current year	0		0
Two years before current year	0		0
Three years before current year	0		0
Four years before current year	0		582
Prior	1,194		0
Revolving	0		0
Total	1,194		582
Commercial \| Real estate: \| Doubtful
Term Loans by Origination Year
Current year	0		0
One year before current year	0		0
Two years before current year	0		0
Three years before current year	0		0
Four years before current year	0		0
Prior	0		0
Revolving	0		0
Total	0		0
Construction \| Real estate:
Term Loans by Origination Year
Current year	16,217		142,157
One year before current year	144,928		72,240
Two years before current year	59,095		46,180
Three years before current year	41,338		18,113
Four years before current year	16,802		6,843
Prior	11,636		4,575
Revolving	0		0
Total	290,016		290,108
Gross Charge-offs
Total	0	0
Construction \| Real estate: \| Pass
Term Loans by Origination Year
Current year	16,217		142,157
One year before current year	144,267		72,240
Two years before current year	59,095		46,180
Three years before current year	41,338		16,859
Four years before current year	15,234		6,246
Prior	8,981		2,517
Revolving	0		0
Total	285,132		286,199
Construction \| Real estate: \| Special Mention
Term Loans by Origination Year
Current year	0		0
One year before current year	661		0
Two years before current year	0		0
Three years before current year	0		0
Four years before current year	0		0
Prior	0		614
Revolving	0		0
Total	661		614
Construction \| Real estate: \| Substandard
Term Loans by Origination Year
Current year	0		0
One year before current year	0		0
Two years before current year	0		0
Three years before current year	0		1,254
Four years before current year	1,568		597
Prior	2,655		1,444
Revolving	0		0
Total	4,223		3,295
Construction \| Real estate: \| Doubtful
Term Loans by Origination Year
Current year	0		0
One year before current year	0		0
Two years before current year	0		0
Three years before current year	0		0
Four years before current year	0		0
Prior	0		0
Revolving	0		0
Total	0		0
Commercial and Industrial
Term Loans by Origination Year
Current year	24,939		70,570
One year before current year	71,185		72,659
Two years before current year	67,706		28,218
Three years before current year	27,364		11,770
Four years before current year	10,803		18,125
Prior	52,580		37,866
Revolving	0		0
Total	254,577		239,208
Gross Charge-offs
Current year	0		0
One year before current year	98		98
Two years before current year	0		0
Three years before current year	0		0
Four years before current year	0		0
Prior	0		0
Revolving	0		0
Total	98	0	98
Commercial and Industrial \| Pass
Term Loans by Origination Year
Current year	24,939		70,540
One year before current year	71,139		71,689
Two years before current year	66,282		28,007
Three years before current year	27,157		9,364
Four years before current year	8,436		18,036
Prior	51,796		37,392
Revolving	0		0
Total	249,749		235,028
Commercial and Industrial \| Special Mention
Term Loans by Origination Year
Current year	0		0
One year before current year	0		156
Two years before current year	805		0
Three years before current year	0		2,406
Four years before current year	2,367		47
Prior	312		273
Revolving	0		0
Total	3,484		2,882
Commercial and Industrial \| Substandard
Term Loans by Origination Year
Current year	0		30
One year before current year	46		814
Two years before current year	619		211
Three years before current year	207		0
Four years before current year	0		42
Prior	472		201
Revolving	0		0
Total	1,344		1,298
Commercial and Industrial \| Doubtful
Term Loans by Origination Year
Current year	0		0
One year before current year	0		0
Two years before current year	0		0
Three years before current year	0		0
Four years before current year	0		0
Prior	0		0
Revolving	0		0
Total	0		0
Consumer \| Other consumer
Term Loans by Origination Year
Current year	0		75
One year before current year	0		278
Two years before current year	262		147
Three years before current year	134		116
Four years before current year	111		0
Prior	231		334
Revolving	0		0
Total	738		950
Gross Charge-offs
Total	0	0
Consumer \| Other consumer \| Pass
Term Loans by Origination Year
Current year	0		75
One year before current year	0		278
Two years before current year	262		147
Three years before current year	134		116
Four years before current year	111		0
Prior	231		334
Revolving	0		0
Total	738		950
Consumer \| Other consumer \| Special Mention
Term Loans by Origination Year
Current year	0		0
One year before current year	0		0
Two years before current year	0		0
Three years before current year	0		0
Four years before current year	0		0
Prior	0		0
Revolving	0		0
Total	0		0
Consumer \| Other consumer \| Substandard
Term Loans by Origination Year
Current year	0		0
One year before current year	0		0
Two years before current year	0		0
Three years before current year	0		0
Four years before current year	0		0
Prior	0		0
Revolving	0		0
Total	0		0
Consumer \| Other consumer \| Doubtful
Term Loans by Origination Year
Current year	0		0
One year before current year	0		0
Two years before current year	0		0
Three years before current year	0		0
Four years before current year	0		0
Prior	0		0
Revolving	0		0
Total	0		0
Consumer \| Credit card, net of reserve
Term Loans by Origination Year
Total	111,898		123,331
Gross Charge-offs
Current year	0		0
One year before current year	0		0
Two years before current year	0		0
Three years before current year	0		0
Four years before current year	0		0
Prior	0		0
Revolving	1,768		7,076
Total	1,768	$ 1,702	7,076
Consumer \| Credit card, net of reserve \| Ungraded
Term Loans by Origination Year
Current year	0		0
One year before current year	0		0
Two years before current year	0		0
Three years before current year	0		0
Four years before current year	0		0
Prior	0		0
Revolving	111,898		123,331
Total	$ 111,898		$ 123,331

Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets
Cash and due from banks	$ 12,361	$ 14,513
Interest-bearing deposits at other financial institutions	72,787	39,044
Federal funds sold	56	407
Total cash and cash equivalents	85,204	53,964
Investment securities available for sale	202,254	208,329
Restricted investments	4,441	4,353
Loans held for sale	10,303	7,481
Portfolio loans receivable, net of deferred fees and costs	1,964,525	1,903,288
Less allowance for credit losses	(29,350)	(28,610)
Total portfolio loans held for investment, net	1,935,175	1,874,678
Premises and equipment, net	4,500	5,069
Accrued interest receivable	12,258	11,494
Deferred tax asset	12,311	12,252
Bank owned life insurance	38,062	37,711
Accounts receivable	11,637	1,055
Other assets	8,093	9,790
Total assets	2,324,238	2,226,176
Deposits
Noninterest-bearing	665,812	617,373
Interest-bearing	1,339,883	1,278,623
Total deposits	2,005,695	1,895,996
Federal Home Loan Bank advances	22,000	22,000
Other borrowed funds	12,062	27,062
Accrued interest payable	6,009	5,583
Other liabilities	19,007	20,675
Total liabilities	2,064,773	1,971,316
Stockholders' equity
Common stock, $0.01 par value; 49,000,000 shares authorized; 13,889,563 issued and outstanding at March 31, 2024; 13,922,532 issued and outstanding at December 31, 2023	139	139
Additional paid-in capital	54,229	54,473
Retained earnings	218,731	213,345
Accumulated other comprehensive loss	(13,634)	(13,097)
Total stockholders' equity	259,465	254,860
Total liabilities and stockholders' equity	$ 2,324,238	$ 2,226,176