Bridgewater Bancshares (BWB) 10-Q 7 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 05, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	Bridgewater Bancshares Inc
Entity Central Index Key	0001341317
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		28,781,162
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
ASSETS
Cash and Cash Equivalents	$ 89,619	$ 28,444
Bank-Owned Certificates of Deposit	2,654	3,305
Securities Available for Sale, at Fair Value	263,803	253,378
Loans, Net of Allowance for Loan Losses of $22,124 at September 30, 2019 (unaudited) and $20,031 at December 31, 2018	1,818,306	1,640,385
Federal Home Loan Bank (FHLB) Stock, at Cost	8,024	7,614
Premises and Equipment, Net	25,764	13,074
Accrued Interest	6,519	6,589
Goodwill	2,626	2,626
Other Intangible Assets, Net	909	1,052
Other Assets	14,115	17,274
Total Assets	2,232,339	1,973,741
Deposits:
Noninterest Bearing	478,493	369,203
Interest Bearing	1,323,743	1,191,731
Total Deposits	1,802,236	1,560,934
Federal Funds Purchased		18,000
Notes Payable	13,500	15,000
FHLB Advances	141,500	124,000
Subordinated Debentures, Net of Issuance Costs	24,707	24,630
Accrued Interest Payable	1,763	1,806
Other Liabilities	12,574	8,373
Total Liabilities	1,996,280	1,752,743
SHAREHOLDERS' EQUITY
Preferred Stock- $0.01 par value Authorized 10,000,000; None Issued and Outstanding at September 30, 2019 (unaudited) and December 31, 2018
Common Stock- $0.01 par value Common Stock - Authorized 75,000,000; Issued and Outstanding 28,781,162 at September 30, 2019 (unaudited) and 30,097,274 at December 31, 2018	288	301
Additional Paid-In Capital	111,670	126,031
Retained Earnings	119,066	96,234
Accumulated Other Comprehensive Income (Loss)	5,035	(1,568)
Total Shareholders' Equity	236,059	220,998
Total Liabilities and Equity	$ 2,232,339	$ 1,973,741

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Consolidated Balance Sheets
Allowance of loan loss	$ 22,124	$ 20,031
Preferred shares, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common shares, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	75,000,000	75,000,000
Common stock, shares issued (in shares)	28,781,162	30,097,274
Common stock, shares outstanding (in shares)	28,781,162	30,097,274

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
INTEREST INCOME
Loans, Including Fees	$ 24,220	$ 20,207	$ 69,720	$ 56,055
Investment Securities	1,910	1,790	5,739	4,830
Other	442	139	900	353
Total Interest Income	26,572	22,136	76,359	61,238
INTEREST EXPENSE
Deposits	6,209	4,322	17,932	10,853
Notes Payable	127	144	378	442
FHLB Advances	908	488	2,510	1,159
Subordinated Debentures	393	401	1,163	1,167
Federal Funds Purchased		147	172	321
Total Interest Expense	7,637	5,502	22,155	13,942
NET INTEREST INCOME	18,935	16,634	54,204	47,296
Provision for Loan Losses	900	1,275	2,100	2,775
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	18,035	15,359	52,104	44,521
NONINTEREST INCOME
Customer Service Fees	184	184	564	539
Net Gain (Loss) on Sales of Available for Sale Securities	58	(49)	516	(108)
Net Gain (Loss) on Sales of Foreclosed Assets	69	(88)	69	(225)
Other Income	635	767	1,565	1,480
Total Noninterest Income	946	814	2,714	1,686
NONINTEREST EXPENSE
Salaries and Employee Benefits	5,915	4,910	15,841	13,534
Occupancy and Equipment	761	596	2,202	1,767
Other Expense	2,408	2,020	8,400	5,221
Total Noninterest Expense	9,084	7,526	26,443	20,522
INCOME BEFORE INCOME TAXES	9,897	8,647	28,375	25,685
Provision for Income Taxes	2,092	2,184	5,543	6,526
NET INCOME	$ 7,805	$ 6,463	$ 22,832	$ 19,159
EARNINGS PER SHARE
Basic (in dollars per share)	$ 0.27	$ 0.22	$ 0.77	$ 0.67
Diluted (in dollars per share)	$ 0.27	$ 0.21	$ 0.76	$ 0.66

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Consolidated Statements of Comprehensive Income
Net Income	$ 7,805	$ 6,463	$ 22,832	$ 19,159
Other Comprehensive Income (Loss):
Unrealized Gains (Losses) on Available for Sale Securities	2,014	(2,253)	10,218	(6,551)
Unrealized Gains (Losses) on Cash Flow Hedge	(326)	5	(1,344)	155
Reclassification Adjustment for (Gains) Losses Realized in Income	(58)	49	(516)	108
Income Tax Impact	(343)	462	(1,755)	1,374
Total Other Comprehensive Income (Loss), Net of Tax	1,287	(1,737)	6,603	(4,914)
Comprehensive Income	$ 9,092	$ 4,726	$ 29,435	$ 14,245

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Common StockVoting Common Stock	Common StockNonvoting Common Stock	Additional Paid In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Balance at the beginning at Dec. 31, 2017	$ 208	$ 38	$ 66,324	$ 69,508	$ 1,084	$ 137,162
Balance at the beginning (in shares) at Dec. 31, 2017	20,834,001	3,845,860
Stock-based Compensation			588			588
Comprehensive Income (Loss)				19,159	(4,914)	14,245
Issuance of Common Stock, Net of Issuance Costs	$ 54		58,803			58,857
Issuance of Common Stock, Net of Issuance Costs (in shares)	5,379,513
Conversion of Non-voting Stock to Voting Stock	$ 10	$ (10)
Conversion of Non-voting Stock to Voting Stock (in shares)	1,022,318	(1,022,318)
Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act to Retained Earnings				(194)	194
Balance at the end at Sep. 30, 2018	$ 272	$ 28	125,715	88,473	(3,636)	210,852
Balance at the end (in shares) at Sep. 30, 2018	27,235,832	2,823,542
Balance at the beginning at Jun. 30, 2018	$ 272	$ 28	125,516	82,010	(1,899)	205,927
Balance at the beginning (in shares) at Jun. 30, 2018	27,235,832	2,823,542
Stock-based Compensation			199			199
Comprehensive Income (Loss)				6,463	(1,737)	4,726
Balance at the end at Sep. 30, 2018	$ 272	$ 28	125,715	88,473	(3,636)	210,852
Balance at the end (in shares) at Sep. 30, 2018	27,235,832	2,823,542
Balance at the beginning at Dec. 31, 2018	$ 301		126,031	96,234	(1,568)	220,998
Balance at the beginning (in shares) at Dec. 31, 2018	30,097,274
Stock-based Compensation			524			524
Comprehensive Income (Loss)				22,832	6,603	29,435
Stock Options Exercised			61			$ 61
Stock Options Exercised (in shares)	15,400					15,400
Stock Repurchases	$ (13)		(14,946)			$ (14,959)
Stock Repurchases (in shares)	(1,331,512)
Balance at the end at Sep. 30, 2019	$ 288		111,670	119,066	5,035	236,059
Balance at the end (in shares) at Sep. 30, 2019	28,781,162
Balance at the beginning at Jun. 30, 2019	$ 290		113,838	111,261	3,748	229,137
Balance at the beginning (in shares) at Jun. 30, 2019	28,986,729
Stock-based Compensation			175			175
Comprehensive Income (Loss)				7,805	1,287	9,092
Stock Repurchases	$ (2)		(2,343)			(2,345)
Stock Repurchases (in shares)	(205,567)
Balance at the end at Sep. 30, 2019	$ 288		$ 111,670	$ 119,066	$ 5,035	$ 236,059
Balance at the end (in shares) at Sep. 30, 2019	28,781,162

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income			$ 22,832	$ 19,159
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Net Amortization on Securities Available for Sale			1,865	2,309
Net (Gain) Loss on Sales of Securities Available for Sale	$ (58)	$ 49	(516)	108
Provision for Loan Losses	900	1,275	2,100	2,775
Depreciation and Amortization of Premises and Equipment			662	560
Amortization of Other Intangible Assets			143	143
Amortization of Subordinated Debt Issuance Costs			77	77
Net (Gain) Loss on Sale of Foreclosed Assets	(69)	88	(69)	225
Stock-based Compensation			524	588
Changes in Operating Assets and Liabilities:
Accrued Interest Receivable and Other Assets			129	(4,897)
Accrued Interest Payable and Other Liabilities			4,158	1,176
Net Cash Provided by Operating Activities			31,905	22,223
CASH FLOWS FROM INVESTING ACTIVITIES
(Increase) Decrease in Bank-owned Certificates of Deposit			651	(233)
Proceeds from Sales of Securities Available for Sale	2,555	10,640	42,864	21,590
Proceeds from Maturities, Paydowns, Payups and Calls of Securities Available for Sale			28,693	17,298
Purchases of Securities Available for Sale			(73,628)	(59,043)
Net Increase in Loans			(181,054)	(252,975)
Net Increase in FHLB Stock			(410)	(2,667)
Purchases of Premises and Equipment			(13,352)	(1,832)
Proceeds from Sales of Foreclosed Assets			1,102	356
Net Cash Used in Investing Activities			(195,134)	(277,506)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase in Deposits			241,302	139,738
Net Increase (Decrease) in Federal Funds Purchased			(18,000)	30,000
Principal Payments on Notes Payable			(1,500)	(1,500)
Proceeds from FHLB Advances			37,500	35,000
Principal Payments on FHLB Advances			(20,000)	(9,000)
Stock Options Exercised			61	58,857
Stock Repurchases			(14,959)
Net Cash Provided by Financing Activities			224,404	253,095
NET CHANGE IN CASH AND CASH EQUIVALENTS			61,175	(2,188)
Cash and Cash Equivalents Beginning			28,444	23,725	$ 23,725
Cash and Cash Equivalents Ending	$ 89,619	$ 21,537	89,619	21,537	$ 28,444
SUPPLEMENTAL CASH FLOW DISCLOSURE
Cash Paid for Interest			22,121	14,043
Cash Paid for Income Taxes			3,800	$ 5,590
Loans Transferred to Foreclosed Assets			$ 1,033

Description of the Business and

Description of the Business and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
Description of the Business and Summary of Significant Accounting Policies
Description of the Business and Summary of Significant Accounting Policies	Note 1: Description of the Business and Summary of Significant Accounting Policies Organization Bridgewater Bancshares, Inc. (the “Company”) is a financial holding company whose operations consist of the ownership of its wholly-owned subsidiaries, Bridgewater Bank (the “Bank”) and Bridgewater Risk Management, Inc. The Bank commenced operations in 2005 and provides retail and commercial loan and deposit services, principally to customers within the Minneapolis-St. Paul-Bloomington, MN-WI Metropolitan Statistical Area. In 2008, the Bank formed BWB Holdings, LLC, a wholly owned subsidiary of the Bank, for the purpose of holding repossessed property. In 2018, the Bank formed Bridgewater Investment Management, Inc., a wholly owned subsidiary of the Bank, for the purpose of holding certain municipal securities and to engage in municipal lending activities. Bridgewater Risk Management, a subsidiary of the Company, was incorporated in 2016 as a wholly owned insurance company. It insures the Company and its subsidiaries against certain risks unique to the operations of the Company and for which insurance may not be currently available or economically feasible in today’s insurance marketplace. Bridgewater Risk Management pools resources with several other insurance company subsidiaries of financial institutions to spread a limited amount of risk among themselves. Basis of Presentation The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10‑Q and, therefore, do not include all disclosures necessary for a complete presentation of the consolidated balance sheets, consolidated statements of income, consolidated statements of comprehensive income, consolidated statements of shareholders’ equity and consolidated statements of cash flows in conformity with U.S. generally accepted accounting principles (“GAAP”). However, all normal recurring adjustments which are, in the opinion of management, necessary for the fair presentation of the interim financial statements have been included. The results of operations for the nine-month period ended September 30, 2019 are not necessarily indicative of the results which may be expected for the entire year. For further information, refer to the consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 14, 2019. Principles of Consolidation These consolidated financial statements include the amounts of the Company, the Bank, with locations in Bloomington, Greenwood, Minneapolis (2), St. Louis Park, Orono, and St. Paul, Minnesota, BWB Holdings, LLC, Bridgewater Investment Management, Inc., and Bridgewater Risk Management, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates in Preparation of Financial Statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term include the valuation of securities, determination of the allowance for loan losses, calculation of deferred tax assets, and fair value of financial instruments. Emerging Growth Company The Company qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and may take advantage of certain exemptions from various reporting requirements that are applicable to public companies that are not emerging growth companies, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. In addition, even if the Company complies with the greater obligations of public companies that are not emerging growth companies, the Company may avail itself of the reduced requirements applicable to emerging growth companies from time to time in the future, so long as the Company is an emerging growth company. The Company will continue to be an emerging growth company until the earliest to occur of: (1) the end of the fiscal year following the fifth anniversary of the date of the first sale of common equity securities under the Company’s Registration Statement on Form S-1, which was declared effective by the SEC on March 13, 2018; (2) the last day of the fiscal year in which the Company has $1.07 billion or more in annual revenues; (3) the date on which the Company is deemed to be a “large accelerated filer” under the Securities Exchange Act of 1934, as amended (the “Exchange Act”); or (4) the date on which the Company has, during the previous three-year period, issued publicly or privately, more than $1.0 billion in non-convertible debt securities. Management cannot predict if investors will find the Company’s common stock less attractive because it will rely on these exemptions. If some investors find the Company’s common stock less attractive as a result, there may be a less active trading market for its common stock and the Company’s stock price may be more volatile. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933 for complying with new or revised accounting standards. As an emerging growth company, the Company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company elected to take advantage of the benefits of this extended transition period. Impact of Recently Issued Accounting Standards The following accounting standard updates (“ASU”) have been issued by the Financial Accounting Standards Board (“FASB”) and may impact the Company’s consolidated financial statements in future reporting periods. In May 2014, the FASB issued ASU 2014‑09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014‑09”). ASU 2014‑09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014‑09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2015‑14, Revenue from Contracts with Customers (Topic 606) (“ASU 2015‑14”) was issued in August 2015 which defers adoption to annual reporting periods beginning after December 15, 2018 and interim reporting periods beginning after December 15, 2019. The timing of the Company’s revenue recognition is not expected to materially change. The Company’s largest portions of revenue, interest and fees on loans, are specifically excluded from the scope of the guidance, and the Company currently recognizes the majority of the remaining revenue sources in a manner that management believes is consistent with the new guidance. Management believes that revenue recognized under the new guidance will generally approximate revenue recognized under current GAAP. These observations are subject to change as the evaluation is completed. In January 2016, the FASB issued ASU 2016‑01, Financial Instruments—Overall (Subtopic 825‑10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016‑01”). This guidance changes how entities account for equity investments that do not result in consolidation and are not accounted for under the equity method of accounting. Entities will be required to measure these investments at fair value at the end of each reporting period and recognize changes in fair value in net income. A practicability exception will be available for equity investments that do not have readily determinable fair values; however, the exception requires the Company to adjust the carrying amount for impairment and observable price changes in orderly transactions for the identical or a similar investment of the same issuer. This guidance also changes certain disclosure requirements and other aspects of current GAAP. This guidance is effective for fiscal years beginning after December 15, 2018 and for interim reporting periods beginning after December 15, 2019. Early adoption is permitted for only one of the six amendments. The Company is evaluating the impact this new standard will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016‑02, Leases (Topic 842) (“ASU 2016‑02”). The new guidance establishes the principles to report transparent and economically neutral information about the assets and liabilities that arise from leases. Entities will be required to recognize the lease assets and lease liabilities that arise from leases in the statement of financial position and to disclose qualitative and quantitative information about lease transactions, such as information about variable lease payments and options to renew and terminate leases. Also, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements which provides an optional transition method to adopt the new requirements of ASU 2016-02 as of the adoption date with no adjustment to the presentation or disclosure of comparative prior periods included in the financial statement in the period of adoption. The guidance is effective for fiscal years beginning after December 15, 2019 and interim reporting periods beginning after December 15, 2020. The Company’s assets and liabilities will increase based on the present value of the remaining lease payments for leases in place at the adoption date; however, this is not expected to be significant to the Company’s results of operations. In June 2016, the FASB issued ASU 2016‑13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (modified by ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments Credit Losses and ASU 2019-05, Financial Instruments Credit Losses – Targeted Transition Relief .) The amendments in this ASU affect all entities that measure credit losses on financial instruments including loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial asset that has a contractual right to receive cash that is not specifically excluded. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this ASU replace the incurred loss impairment methodology required in current GAAP with a methodology that reflects expected credit losses that requires consideration of a broader range of reasonable and supportable information to estimate credit losses. The amendments in this ASU will affect entities to varying degrees depending on the credit quality of the assets held by the entity, the duration of the assets held, and how the entity applies the current incurred loss methodology. In October, 2019, the FASB voted to approve an amendment to the effective date of ASU No. 2016-13 for smaller reporting companies and non-SEC reporting entities. The amendment would delay the effective date to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. As an emerging growth company, the Company can take advantage of this delay. The final ASU is expected to be issued in November 2019. All entities may adopt the amendments in the ASU early as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Amendments should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. The Company is evaluating the impact this new standard will have on its consolidated financial statements. A steering committee has been established with representation from various departments across the organization to assess and implement the new standard. In January 2017, the FASB issued ASU 2017‑04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The amendments in this ASU were issued to address concerns over the cost and complexity of the two-step goodwill impairment test and resulted in the removal of the second step of the test. The amendments require an entity to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. This ASU is intended to reduce the cost and complexity of the two-step goodwill impairment test and is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2021, with early adoption permitted for testing performed after January 1, 2017. Upon adoption, the amendments should be applied on a prospective basis and the entity is required to disclose the nature of and reason for the change in accounting principle upon transition. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In March 2017, the FASB issued ASU 2017‑08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310‑20): Premium Amortization on Purchased Callable Debt Securities. The amendments in this ASU shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount as discounts continue to be accreted to maturity. This ASU is intended to more closely align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities. In most cases, market participants price securities to the call date that produces the worst yield when the coupon is above current market rates and prices securities to maturity when the coupon is below market rates. As a result, the amendments more closely align interest income recorded on bonds held at a premium or a discount with the economics of the underlying instrument. This ASU is intended to reduce diversity in practice and is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. Upon adoption, the amendments should be applied using a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principles. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In August 2017, the FASB issued ASU 2017‑12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The amendments of this ASU better align an entity’s accounting and financial reporting for hedging activities with the economic objectives of those activities. The ASU is effective for fiscal years beginning after December 15, 2019 and interim reporting periods beginning after December 15, 2020, with early adoption permitted. The Company is evaluating the impact this new standard will have on its consolidated financial statements. In August 2018, the FASB issued ASU 2018‑13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The amendments of this ASU modify the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by these amendments. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In March 2019, the FASB issued ASU No. 2019-01, Leases (Topic 842): Codification Improvements . This ASU pro vides clarifications to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing essential information about leasing transactions. Specifically, this ASU (i) states that for lessors that are not manufacturers or dealers, the fair value of the underlying asset is its cost, less any volume or trade discounts, as long as there isn’t a significant amount of time between acquisition of the asset and lease commencement, (ii) allows for the cash flows received for sales-type and direct financing leases to continue to be presented as results from investing, and (iii) clarifies the transition guidance related to certain interim disclosures provided in the year of adoption. I n October, 2019, the FASB voted to approve an amendment to the effective date of ASU No. 2019-01 for smaller reporting companies and non-SEC reporting entities. The amendment would delay the effective date to fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. As an emerging growth company, the Company can take advantage of this delay. The final ASU is expected to be issued in November 2019. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In July 2019, the FASB issued ASU No Codification Updates to SEC Sections , which amends certain SEC sections or paragraphs within the Accounting Standards Codification to reflect changes in SEC Final Rule Releases No. 33-10532, “Disclosure Update and Simplification,” and 33-10231 and 33-10442, “Investment Company Reporting Modernization.” Other revisions in ASU No. update language in the codification to match the electronic Code of Federal Regulations. The amendments became effective upon addition to the FASB Codification and there is no impact on the consolidated financial statements. Subsequent Events Subsequent events have been evaluated through November 7, 2019, which is the date the consolidated financial statements were available to be issued.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2019
Earnings Per Share
Earnings Per Share	Note 2: Earnings Per Share Basic earnings per common share are computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per common share are calculated by dividing net income by the weighted average number of shares adjusted for the dilutive effect of stock options. The dilutive effect was computed using the treasury stock method, which assumes the stock options were exercised and the hypothetical proceeds from the exercise were used by the Company to purchase common stock at the average market price during the period. The calculation of diluted earnings per common share excludes outstanding stock options for which the results would have been anti-dilutive. The following table presents the numerators and denominators for basic and diluted earnings per share computations for the three and nine months ended September 30, 2019 and 2018: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net Income Available to Common Shareholders $ 7,805 $ 6,463 $ 22,832 $ 19,159 Weighted Average Common Stock Outstanding: Weighted Average Common Stock Outstanding (Basic) 28,820,144 30,059,374 29,535,589 28,640,601 Stock Options 677,817 430,274 645,967 430,275 Weighted Average Common Stock Outstanding (Dilutive) 29,497,961 30,489,648 30,181,556 29,070,876 Basic Earnings per Common Share $ 0.27 $ 0.22 $ 0.77 $ 0.67 Diluted Earnings per Common Share 0.27 0.21 0.76 0.66

Securities

Securities	9 Months Ended
	Sep. 30, 2019
Securities
Securities	Note 3: Securities The following tables present the amortized cost and estimated fair value of securities with gross unrealized gains and losses at September 30, 2019 and December 31, 2018: September 30, 2019 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Securities Available for Sale: U.S. Treasury Securities $ 9,975 $ 12 $ (1) $ 9,986 Municipal Bonds 98,821 6,766 (22) 105,565 Mortgage-Backed Securities 55,959 917 (157) 56,719 Corporate Securities 39,712 515 (72) 40,155 SBA Securities 48,963 38 (634) 48,367 Asset-Backed Securities 3,008 3 — 3,011 Total Securities Available for Sale $ 256,438 $ 8,251 $ (886) $ 263,803 December 31, 2018 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Securities Available for Sale: U.S. Treasury Securities $ 17,862 $ 54 $ (19) $ 17,897 Municipal Bonds 117,991 1,257 (1,115) 118,133 Mortgage-Backed Securities 48,816 52 (1,692) 47,176 Corporate Securities 21,170 72 (124) 21,118 SBA Securities 49,876 13 (835) 49,054 Total Securities Available for Sale $ 255,715 $ 1,448 $ (3,785) $ 253,378 The following tables present the fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2019 and December 31, 2018: Less Than 12 Months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses September 30, 2019 U.S. Treasury Securities $ 4,998 $ (1) $ — $ — $ 4,998 $ (1) Municipal Bonds 429 (1) 1,382 (21) 1,811 (22) Mortgage-Backed Securities 21,335 (117) 3,462 (40) 24,797 (157) Corporate Securities 8,515 (72) — — 8,515 (72) SBA Securities 9,467 (39) 33,575 (595) 43,042 (634) Total Securities Available for Sale $ 44,744 $ (230) $ 38,419 $ (656) $ 83,163 $ (886) Less Than 12 Months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses December 31, 2018 U.S. Treasury Securities $ 14,866 $ (19) $ — $ — $ 14,866 $ (19) Municipal Bonds 15,405 (199) 34,172 (916) 49,577 (1,115) Mortgage-Backed Securities 1,751 (21) 41,776 (1,671) 43,527 (1,692) Corporate Securities 9,063 (74) 1,996 (50) 11,059 (124) SBA Securities 28,186 (366) 15,878 (469) 44,064 (835) Total Securities Available for Sale $ 69,271 $ (679) $ 93,822 $ (3,106) $ 163,093 $ (3,785) At September 30, 2019, 100 debt securities had unrealized losses with aggregate depreciation of approximately 1.1% from the Company’s amortized cost basis. At December 31, 2018, 195 debt securities had unrealized losses with aggregate depreciation of approximately 2.3% from the Company’s amortized cost basis. These unrealized losses relate principally to changes in interest rates and are not due to changes in the financial condition of the issuer, the quality of any underlying assets, or applicable credit enhancements. In analyzing whether unrealized losses on debt securities are other than temporary, management considers whether the securities are issued by a government body or agency, whether a rating agency has downgraded the securities, industry analysts’ reports, the financial condition and performance of the issuer, and the quality of any underlying assets or credit enhancements. Since management has the ability and intent to hold these debt securities for the foreseeable future, no declines were deemed to be other than temporary as of September 30, 2019. The following is a summary of amortized cost and estimated fair value of debt securities by the lesser of expected call date or contractual maturity as of September 30, 2019. Call date is used when a call of the debt security is expected, which is determined by the Company when the security has a market value above its amortized cost. Contractual maturities will differ from expected maturities for mortgage-backed, SBA securities and asset-backed securities because borrowers may have the right to call or prepay obligations without penalties. September 30, 2019 Amortized Cost Fair Value Due in One Year or Less $ 21,240 $ 21,302 Due After One Year Through Five Years 42,786 43,908 Due After Five Years Through 10 Years 73,733 77,922 Due After 10 Years 10,749 12,574 Subtotal 148,508 155,706 Mortgage-Backed Securities 55,959 56,719 SBA Securities 48,963 48,367 Asset-Backed Securities 3,008 3,011 Totals $ 256,438 $ 263,803 As of September 30, 2019 and December 31, 2018, the securities portfolio was unencumbered. The following is a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses, for the three and nine months ended September 30, 2019 and 2018: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Proceeds From Sales of Securities $ 2,555 $ 10,640 $ 42,864 $ 21,590 Gross Gains on Sales 58 237 774 289 Gross Losses on Sales — (286) (258) (397)

Loans

Loans	9 Months Ended
	Sep. 30, 2019
Loans
Loans	Note 4: Loans The following table presents the components of the loan portfolio at September 30, 2019 and December 31, 2018: September 30, December 31, 2019 2018 Commercial $ 291,723 $ 260,833 Construction and Land Development 216,054 210,041 Real Estate Mortgage: 1-4 Family Mortgage 254,782 226,773 Multifamily 456,257 407,934 CRE Owner Occupied 71,209 64,458 CRE Non-owner Occupied 551,992 490,632 Total Real Estate Mortgage Loans 1,334,240 1,189,797 Consumer and Other 4,201 4,260 Total Loans, Gross 1,846,218 1,664,931 Allowance for Loan Losses (22,124) (20,031) Net Deferred Loan Fees (5,788) (4,515) Total Loans, Net $ 1,818,306 $ 1,640,385 The following table presents the activity in the allowance for loan losses, by segment, for the three months ended September 30, 2019 and 2018: Construction CRE CRE and Land 1-‑4 Family Owner Non‑owner Consumer Three Months Ended September 30, 2019 Commercial Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total Allowance for Loan Losses: Beginning Balance $ 3,181 $ 2,246 $ 2,827 $ 4,994 $ 844 $ 6,485 $ 66 $ 719 $ 21,362 Provision for Loan Losses 196 196 (15) 183 5 50 18 267 900 Loans Charged-off (141) — — — — — (3) — (144) Recoveries of Loans 2 — 3 — — — 1 — 6 Total Ending Allowance Balance $ 3,238 $ 2,442 $ 2,815 $ 5,177 $ 849 $ 6,535 $ 82 $ 986 $ 22,124 Three Months Ended September 30, 2018 Allowance for Loan Losses: Beginning Balance $ 2,248 $ 1,965 $ 2,567 $ 3,552 $ 823 $ 5,611 $ 57 $ 843 $ 17,666 Provision for Loan Losses 362 244 (47) 757 — 127 8 (176) 1,275 Loans Charged-off — (1) — — — — (10) — (11) Recoveries of Loans 1 — 16 — — — 2 — 19 Total Ending Allowance Balance $ 2,611 $ 2,208 $ 2,536 $ 4,309 $ 823 $ 5,738 $ 57 $ 667 $ 18,949 The following table presents the activity in the allowance for loan losses, by segment, for the nine months ended September 30, 2019 and 2018: Construction CRE CRE and Land 1-‑4 Family Owner Non‑owner Consumer Nine Months Ended September 30, 2019 Commercial Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total Allowance for Loan Losses: Beginning Balance $ 2,898 $ 2,451 $ 2,597 $ 4,644 $ 808 $ 5,872 $ 65 $ 696 $ 20,031 Provision for Loan Losses 495 (10) 53 533 41 663 35 290 2,100 Loans Charged-off (160) — — — — — (23) — (183) Recoveries of Loans 5 1 165 — — — 5 — 176 Total Ending Allowance Balance $ 3,238 $ 2,442 $ 2,815 $ 5,177 $ 849 $ 6,535 $ 82 $ 986 $ 22,124 Nine Months Ended September 30, 2018 Allowance for Loan Losses: Beginning Balance $ 2,435 $ 1,892 $ 2,317 $ 3,170 $ 956 $ 5,087 $ 60 $ 585 $ 16,502 Provision for Loan Losses 153 674 190 1,139 (133) 651 19 82 2,775 Loans Charged-off — (358) — — — — (26) — (384) Recoveries of Loans 23 — 29 — — — 4 — 56 Total Ending Allowance Balance $ 2,611 $ 2,208 $ 2,536 $ 4,309 $ 823 $ 5,738 $ 57 $ 667 $ 18,949 The following tables present the balance in the allowance for loan losses and the recorded investment in loans, by segment, based on impairment method as of September 30, 2019 and December 31, 2018: Construction CRE CRE and Land 1-‑4 Family Owner Non‑owner Consumer Allowance for Loan Losses at September 30, 2019 Commercial Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total Individually Evaluated for Impairment $ 57 $ 50 $ 60 $ — $ — $ — $ 14 $ — $ 181 Collectively Evaluated for Impairment 3,181 2,392 2,755 5,177 849 6,535 68 986 21,943 Totals $ 3,238 $ 2,442 $ 2,815 $ 5,177 $ 849 $ 6,535 $ 82 $ 986 $ 22,124 Allowance for Loan Losses at December 31, 2018 Individually Evaluated for Impairment $ 8 $ — $ 17 $ — $ 22 $ — $ — $ — $ 47 Collectively Evaluated for Impairment 2,890 2,451 2,580 4,644 786 5,872 65 696 19,984 Totals $ 2,898 $ 2,451 $ 2,597 $ 4,644 $ 808 $ 5,872 $ 65 $ 696 $ 20,031 Construction CRE CRE and Land 1-‑4 Family Owner Non‑owner Consumer Loans at September 30, 2019 Commercial Development Mortgage Multifamily Occupied Occupied and Other Total Individually Evaluated for Impairment $ 132 $ 2,156 $ 1,963 $ — $ 337 $ — $ 14 $ 4,602 Collectively Evaluated for Impairment 291,591 213,898 252,819 456,257 70,872 551,992 4,187 1,841,616 Totals $ 291,723 $ 216,054 $ 254,782 $ 456,257 $ 71,209 $ 551,992 $ 4,201 $ 1,846,218 Loans at December 31, 2018 Individually Evaluated for Impairment $ 8 $ 198 $ 1,676 $ — $ 365 $ — $ 58 $ 2,305 Collectively Evaluated for Impairment 260,825 209,843 225,097 407,934 64,093 490,632 4,202 1,662,626 Totals $ 260,833 $ 210,041 $ 226,773 $ 407,934 $ 64,458 $ 490,632 $ 4,260 $ 1,664,931 The following table presents information regarding total carrying amounts and total unpaid principal balances of impaired loans by loan segment as September 30, 2019 and December 31, 2018: September 30, 2019 December 31, 2018 Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance Loans With No Related Allowance for Loan Losses: Construction and Land Development $ 2,106 $ 2,715 $ — $ 198 $ 807 $ — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 155 155 — 157 157 — 1st REM - 1-4 Family 617 617 — 253 253 — 1st REM - Rentals 758 758 — 957 957 — CRE Owner Occupied 337 337 — 209 209 — Consumer and Other — — — 58 78 — Totals 3,973 4,582 — 1,832 2,461 — Loans With An Allowance for Loan Losses: Commercial 132 247 57 8 8 8 Construction and Land Development 50 50 50 — — — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 305 331 42 309 336 17 1st REM - Rentals 128 128 18 — — — CRE Owner Occupied — — — 156 156 22 Consumer and Other 14 14 14 — — — Totals 629 770 181 473 500 47 Grand Totals $ 4,602 $ 5,352 $ 181 $ 2,305 $ 2,961 $ 47 The following table presents information regarding the average balances and interest income recognized on impaired loans by loan segment for the three and nine months ended September 30, 2019 and 2018: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Average Interest Average Interest Average Interest Average Interest Investment Recognized Investment Recognized Investment Recognized Investment Recognized Loans With No Related Allowance for Loan Losses: Construction and Land Development $ 2,410 $ 35 $ 214 $ — $ 2,734 $ 122 $ 217 $ — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 155 2 157 2 156 6 159 7 1st REM - 1-4 Family 617 6 372 3 617 18 376 8 1st REM - Rentals 760 11 971 12 766 29 981 36 Multifamily — — 65 1 — — 65 2 CRE Owner Occupied 338 5 501 7 406 17 512 21 Consumer and Other — — 64 — — — 67 — Totals 4,280 59 2,344 25 4,679 192 2,377 74 Loans With An Allowance for Loan Losses: Commercial 133 6 14 — 138 7 14 — Construction and Land Development 50 1 — — 50 1 — — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 305 — 322 — 306 — 328 — LOCs and 2nd REM - Rentals — — 64 1 — — 64 2 1st REM - Rentals 128 3 — — 129 3 — — CRE Owner Occupied — — 158 2 — — 158 5 Consumer and Other 14 2 — — 54 2 — — Totals 630 12 558 3 677 13 564 7 Grand Totals $ 4,910 $ 71 $ 2,902 $ 28 $ 5,356 $ 205 $ 2,941 $ 81 The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The process of analyzing loans for changes in risk rating is ongoing through routine monitoring of the portfolio and annual internal credit reviews for credits meeting certain thresholds. The following tables present the risk category of loans by loan segment as of September 30, 2019 and December 31, 2018, based on the most recent analysis performed by management: September 30, 2019 Pass Watch Substandard Doubtful Total Commercial $ 291,569 $ 22 $ 108 $ 24 $ 291,723 Construction and Land Development 213,757 141 2,156 — 216,054 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 30,782 137 — — 30,919 1st REM - 1-4 Family 37,924 125 795 — 38,844 LOCs and 2nd REM - Rentals 13,488 481 460 — 14,429 1st REM - Rentals 168,499 1,382 709 — 170,590 Multifamily 456,257 — — — 456,257 CRE Owner Occupied 69,527 — 1,682 — 71,209 CRE Non-owner Occupied 548,888 3,104 — — 551,992 Consumer and Other 4,187 — 14 — 4,201 Totals $ 1,834,878 $ 5,392 $ 5,924 $ 24 $ 1,846,218 December 31, 2018 Pass Watch Substandard Doubtful Total Commercial $ 260,225 $ 600 $ 8 $ — $ 260,833 Construction and Land Development 207,174 2,669 198 — 210,041 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 30,669 587 — — 31,256 1st REM - 1-4 Family 37,526 126 253 — 37,905 LOCs and 2nd REM - Rentals 11,341 628 474 — 12,443 1st REM - Rentals 142,357 1,854 958 — 145,169 Multifamily 407,934 — — — 407,934 CRE Owner Occupied 62,223 — 2,235 — 64,458 CRE Non-owner Occupied 487,438 3,194 — — 490,632 Consumer and Other 4,202 — 58 — 4,260 Totals $ 1,651,089 $ 9,658 $ 4,184 $ — $ 1,664,931 The following tables present the aging of the recorded investment in past due loans by loan segment as of September 30, 2019 and December 31, 2018: Accruing Interest 30-89 Days 90 Days or September 30, 2019 Current Past Due More Past Due Nonaccrual Total Commercial $ 291,691 $ — $ — $ 32 $ 291,723 Construction and Land Development 215,822 — — 232 216,054 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 30,919 — — — 30,919 1st REM - 1-4 Family 38,844 — — — 38,844 LOCs and 2nd REM - Rentals 14,124 — — 305 14,429 1st REM - Rentals 170,331 — — 259 170,590 Multifamily 456,257 — — — 456,257 CRE Owner Occupied 71,209 — — — 71,209 CRE Non-owner Occupied 551,992 — — — 551,992 Consumer and Other 4,201 — — — 4,201 Totals $ 1,845,390 $ — $ — $ 828 $ 1,846,218 Accruing Interest 30-89 Days 90 Days or December 31, 2018 Current Past Due More Past Due Nonaccrual Total Commercial $ 260,813 $ 12 $ — $ 8 $ 260,833 Construction and Land Development 209,843 — — 198 210,041 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 30,939 — — 317 31,256 1st REM - 1-4 Family 37,705 200 — — 37,905 LOCs and 2nd REM - Rentals 12,443 — — — 12,443 1st REM - Rentals 145,169 — — — 145,169 Multifamily 407,934 — — — 407,934 CRE Owner Occupied 64,360 98 — — 64,458 CRE Non-owner Occupied 490,632 — — — 490,632 Consumer and Other 4,201 1 — 58 4,260 Totals $ 1,664,039 $ 311 $ — $ 581 $ 1,664,931 At September 30, 2019, there were three loans classified as troubled debt restructurings with a current outstanding balance of $460. In comparison, at December 31, 2018, there were three loans classified as troubled debt restructurings with an outstanding balance of $437. There was one new loan classified as a troubled debt restructuring during the nine month period ended September 30, 2019, and no loans classified as troubled debt restructurings during the previous twelve months subsequently defaulted during the nine months ended September 30, 2019.

Deposits

Deposits	9 Months Ended
	Sep. 30, 2019
Deposits.
Deposits	Note 5: Deposits The following table presents the composition of deposits at September 30, 2019 and December 31, 2018: September 30, December 31, 2019 2018 Transaction Deposits $ 722,382 $ 548,770 Savings and Money Market Deposits 470,518 402,639 Time Deposits 363,308 318,356 Brokered Deposits 246,028 291,169 Totals $ 1,802,236 $ 1,560,934

Tax Credit Investments

Tax Credit Investments	9 Months Ended
	Sep. 30, 2019
Tax Credit Investments
Tax Credit Investments	Note 6: Tax Credit Investments The Company invests in qualified affordable housing projects and federal historic projects for the purpose of community reinvestment and obtaining tax credits. The Company’s tax credit investments are limited to existing lending relationships with well-known developers and projects within the Company’s market area. The following table presents the Company’s investments in qualified affordable housing projects and other tax credit investments at September 30, 2019 and December 31, 2018: September 30, 2019 December 31, 2018 Investment Accounting Method Investment Unfunded Commitment (1) Investment Unfunded Commitment Low Income Housing Tax Credit (LIHTC) Proportional Amortization $ 2,220 $ — $ 2,436 $ — Federal Historic Tax Credit (FHTC) Equity 1,890 3,451 1,814 3,226 Total $ 4,110 $ 3,451 $ 4,250 $ 3,226 (1) All commitments are expected to be paid by the Company by December 31, 2020. The following table presents the amortization expense and tax benefit recognized for the Company’s qualified affordable housing projects and other tax credit investments for the three and nine months ended September 30, 2019 and 2018: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Amortization Expense (1) LIHTC $ 72 $ 76 $ 216 $ 237 FHTC 530 15 2,097 15 Total $ 602 $ 91 $ 2,313 $ 252 Tax Benefit Recognized (2) LIHTC $ (83) $ (83) $ (248) $ (248) FHTC (641) (12) (2,539) (12) Total $ (724) $ (95) $ (2,787) $ (260) (1) The amortization expense for the LIHTC investments are included in income tax expense. The amortization for the FHTC tax credits are included in noninterest expense. (2) All of the tax benefits recognized are included in income tax expense. The tax benefit recognized for the FHTC investments primarily reflects the tax credits generated from the investments, and excludes the net tax expense/benefit of the investments’ income/loss.

Commitments, Contingencies and

Commitments, Contingencies and Credit Risk	9 Months Ended
	Sep. 30, 2019
Commitments, Contingencies and Credit Risk
Commitments, Contingencies and Credit Risk	Note 7: Commitments, Contingencies and Credit Risk Financial Instruments with Off-Balance Sheet Credit Risk The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss is represented by the contractual, or notional, amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments. Because some of the commitments are expected to expire without being drawn upon and some of the commitments may not be drawn upon to the total extent of the commitment, the notional amount of these commitments does not necessarily represent future cash requirements. The following commitments were outstanding at September 30, 2019 and December 31, 2018: September 30, December 31, 2019 2018 Unfunded Commitments Under Lines of Credit $ 491,472 $ 395,032 Letters of Credit 80,324 81,053 Totals $ 571,796 $ 476,085 The Company had outstanding letters of credit with the FHLB in total amounts of $85,809 and $129,152 at September 30, 2019 and December 31, 2018, respectively, on behalf of customers and to secure public deposits. On August 27, 2018, the Bank and Reuter Walton Commercial, LLC (the “Contractor”) entered into a Standard Form of Agreement Between Owner and Contractor and the corresponding General Conditions of the Contract for Construction (collectively, the “Construction Contract”). Under the Construction Contract, the Contractor is constructing the core and shell of a new headquarters building for the Bank in St. Louis Park, Minnesota, and the Bank is required to pay the Contractor a contract price consisting of the cost of work plus a fee equal to 3.75% of the cost of work, subject to a guaranteed maximum price of $23,000, with anticipated construction completed in 2020. As of September 30, 2019, $12,437 has been paid under this Construction Contract. Legal Contingencies Neither the Company nor any of its subsidiaries is a party, and no property of these entities is subject, to any material pending legal proceedings, other than ordinary routine litigation incidental to the Bank’s business. The Company does not know of any proceeding contemplated by a governmental authority against the Company or any of its subsidiaries .

Stock Options

Stock Options	9 Months Ended
	Sep. 30, 2019
Stock Options
Stock Options	Note 8: Stock Options In 2017, the Company approved the Bridgewater Bancshares, Inc. 2017 Combined Incentive and Non-Statutory Stock Option Plan (the “2017 Plan”). Under the 2017 Plan, the Company may grant options to its directors, officers, and employees for up to 1,500,000 shares of common stock. Both incentive stock options and nonqualified stock options may be granted under the 2017 Plan. The exercise price of each option equals the estimated fair market value of the Company’s stock on the date of grant and an option’s maximum term is ten years. All outstanding options have been granted with a vesting period of five years. As September 30, 2019 and December 31, 2018, there were 488,600 and 540,000, respectively, unissued shares of the Company’s common stock authorized for option grants under the 2017 Plan. The fair market value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on an industry index as described below. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. Historically, the Company has not paid a dividend on its common stock and does not expect to do so in the near future. The Company used the S&P 600 CM Bank Index as its historical volatility index. The S&P 600 CM Bank Index is an index of publicly traded small capitalization, regional, commercial banks located throughout the United States. There were 44 banks in the index ranging in market capitalization from $470.0 million up to $4.5 billion. The weighted average assumptions used in the model for valuing stock option grants for the nine months ended September 30, 2019, are as follows: September 30, 2019 Dividend Yield — % Expected Life 7 Years Expected Volatility 21.95 % Risk-Free Interest Rate 1.65 % The following table presents a summary of the status of the Company’s stock option plans for the nine months ended September 30, 2019: September 30, 2019 Weighted Average Shares Exercise Price Outstanding at Beginning of Year 1,807,100 $ 6.24 Granted 60,000 11.13 Exercised (15,400) 4.00 Forfeitures (8,600) 10.65 Outstanding at Period End 1,843,100 $ 6.39 Options Exercisable at Period End 833,296 $ 4.18 For the three months ended September 30, 2019 and 2018, the Company recognized compensation expense for stock options of $175 and $199, respectively. For the nine months ended September 30, 2019 and 2018, the Company recognized compensation expense for stock options of $524 and $588, respectively. The following table presents information pertaining to options outstanding at September 30, 2019: Options Outstanding Options Exercisable Number Remaining Number Exercise Price Outstanding Contractual Life Exercise Price Outstanding $ 1.65 7,500 2.1 Years $ 1.65 7,500 2.13 80,000 3.5 Years 2.13 80,000 3.00 490,000 4.3 Years 3.00 490,000 3.58 50,000 5.3 Years 3.58 40,000 7.47 1,030,600 8.0 Years 7.47 201,796 13.22 25,000 8.6 Years 13.22 5,000 12.86 45,000 8.9 Years 12.86 9,000 12.94 30,000 9.0 Years 12.94 — 11.59 25,000 9.1 Years 11.59 — 11.15 10,000 9.4 Years 11.15 — 11.13 50,000 9.9 Years 11.13 — Totals 1,843,100 6.8 Years $ 6.39 $ 833,296 As of September 30, 2019, there was $2,293 of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the 2017 Plan that is expected to be recognized over a period of five years. The following is an analysis of nonvested options to purchase shares of the Company’s stock issued and outstanding for the nine months ended September 30, 2019: Weighted Number of Average Grant Shares Date Fair Value Nonvested Options at December 31, 2018 1,086,000 $ 2.78 Granted 60,000 3.06 Vested (127,596) 1.82 Forfeited (8,600) 3.40 Nonvested Options at September 30, 2019 1,009,804 $ 2.92

Regulatory Capital

Regulatory Capital	9 Months Ended
	Sep. 30, 2019
Regulatory Capital
Regulatory Capital	Note 9: Regulatory Capital Effective January 1, 2015, the capital requirements of the Company and the Bank were changed to implement the regulatory requirements of the Basel III capital reforms. The Basel III requirements, among other things, (i) apply a strengthened set of capital requirements to the Company and Bank, including requirements related to common equity as a component of core capital, (ii) implement a “capital conservation buffer” against risk and higher minimum tier 1 capital requirement, and (iii) revise the rules for calculating risk-weighted assets for purposes of such requirements. The rules made corresponding revisions to the prompt corrective action framework and include the new capital ratios and buffer requirements which were phased in incrementally, with full implementation on January 1, 2019. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve qualitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the tables below and defined in the regulations) of Total Capital to Risk Weighted Assets, Tier 1 Capital to Risk Weighted Assets, Common Equity Tier 1 Capital to Risk Weighted Assets, and Tier 1 Capital to Average Assets. The following tables present the Company and the Bank’s capital amounts and ratios as of September 30, 2019 and December 31, 2018: Minimum Required For Capital Adequacy To be Well Capitalized For Capital Adequacy Purposes Plus Capital Under Prompt Corrective Actual Purposes Conservation Buffer Action Regulations September 30, 2019 Amount Ratio Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Company (Consolidated): Total Risk-Based Capital $ 268,907 13.31 % $ 161,635 8.00 % $ 212,146 10.50 % N/A N/A Tier 1 Risk-Based Capital 227,489 11.26 121,226 6.00 171,737 8.50 N/A N/A Common Equity Tier 1 Capital 227,489 11.26 90,920 4.50 141,431 7.00 N/A N/A Tier 1 Leverage Ratio 227,489 10.53 86,401 4.00 86,401 4.00 N/A N/A Bank: Total Risk-Based Capital $ 251,102 12.44 % $ 161,450 8.00 % $ 211,904 10.50 % $ 201,813 10.00 % Tier 1 Risk-Based Capital 234,391 11.61 121,088 6.00 171,541 8.50 161,450 8.00 Common Equity Tier 1 Capital 234,391 11.61 90,816 4.50 141,269 7.00 131,178 6.50 Tier 1 Leverage Ratio 234,391 10.88 86,197 4.00 86,197 4.00 107,746 5.00 Minimum Required For Capital Adequacy To be Well Capitalized For Capital Adequacy Purposes Plus Capital Under Prompt Corrective Actual Purposes Conservation Buffer Action Regulations December 31, 2018 Amount Ratio Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Company (Consolidated): Total Risk-Based Capital $ 263,909 14.55 % $ 145,111 8.00 % $ 179,121 9.875 % N/A N/A Tier 1 Risk-Based Capital 218,888 12.07 108,833 6.00 142,844 7.875 N/A N/A Common Equity Tier 1 Capital 218,888 12.07 81,625 4.50 115,635 6.375 N/A N/A Tier 1 Leverage Ratio 218,888 11.23 77,971 4.00 77,971 4.00 N/A N/A Bank: Total Risk-Based Capital $ 230,865 12.76 % $ 144,776 8.00 % $ 178,707 9.875 % $ 180,970 10.00 % Tier 1 Risk-Based Capital 210,474 11.63 108,582 6.00 142,514 7.875 144,776 8.00 Common Equity Tier 1 Capital 210,474 11.63 81,436 4.50 115,368 6.375 117,630 6.50 Tier 1 Leverage Ratio 210,474 10.82 77,795 4.00 77,795 4.00 97,244 5.00 The Company and the Bank must maintain a capital conservation buffer, as defined by Basel III regulatory capital guidelines, in order to avoid limitations on capital distributions, including dividend payments, stock repurchases and certain discretionary bonus payments to executive officers. The capital conservation buffer was fully phased-in on January 1, 2019 at 2.5%. The required phase-in capital conservation buffer during 2018 was 1.875%.

Stock Repurchase Program

Stock Repurchase Program	9 Months Ended
	Sep. 30, 2019
Stock Repurchase Program
Stock Repurchase Program	Note 10: Stock Repurchase Program On January 22, 2019, the Company adopted a stock repurchase program. Under the repurchase program, the Company may repurchase up to $15.0 million of its common stock during the 24-month period beginning on January 22, 2019. The stock repurchase program permits the Company’s management to acquire shares of the Company’s common stock from time to time in the open market in accordance with Rule 10b-18 of the Exchange Act or in privately negotiated transactions at prices management considers to be attractive and in the best interests of the Company and its shareholders. The stock repurchase program does not obligate the Company to repurchase shares of its common stock. Any repurchases are subject to compliance with applicable laws and regulations. Repurchases will be conducted in consideration of general market and economic conditions, regulatory requirements, availability of funds, and other relevant considerations, as determined by the Company. The stock repurchase program may be modified, suspended or discontinued at any time at the discretion of the Company’s Board of Directors. On July 23, 2019, the Company’s Board of Directors approved a $10.0 million increase to the Company’s stock repurchase program, increasing the authorization to repurchase common stock under the program from a total of $15.0 million to up to a total of $25.0 million. The stock repurchase program continues through January 22, 2021. During the three months ended September 30, 2019, the Company repurchased 205,567 shares of its common stock, representing less than 1% of the Company’s outstanding shares. Shares were repurchased at a weighted average price of $11.41 for a total of $2.3 million. During the nine months ended September 30, 2019, the Company repurchased 1,331,512 shares of its common stock, representing approximately 5% of the Company’s outstanding shares. Shares were repurchased at a weighted average price of $11.23 for a total of $15.0 million. All shares repurchased under the stock repurchase program were converted to authorized but unissued shares. At September 30, 2019, the remaining amount that could be used to repurchase shares under the stock repurchase program was $10.0 million.

Fair Value Measurement

Fair Value Measurement	9 Months Ended
	Sep. 30, 2019
Fair Value Measurement
Fair Value Measurement	Note 11: Fair Value Measurement The Company categorizes its assets and liabilities measured at fair value into a three-level hierarchy based on the priority of the inputs to the valuation technique used to determine fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used in the determination of the fair value measurement fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement. Assets and liabilities valued at fair value are categorized based on the inputs to the valuation techniques as follows: Level 1 – Inputs that utilized quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 – Inputs that include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instruments. Fair values for these instruments are estimated using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Level 3 – Inputs that are unobservable for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. Subsequent to initial recognition, the Company may re-measure the carrying value of assets and liabilities measured on a nonrecurring basis to fair value. Adjustments to fair value usually result when certain assets are impaired. Such assets are written down from their carrying amounts to their fair value. Professional standards allow entities the irrevocable option to elect to measure certain financial instruments and other items at fair value for the initial and subsequent measurement on an instrument-by-instrument basis. The Company adopted the policy to value certain financial instruments at fair value. The Company has not elected to measure any existing financial instruments at fair value; however, it may elect to measure newly acquired financial instruments at fair value in the future. Recurring Basis The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The following tables present the balances of the assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018: September 30, 2019 Level 1 Level 2 Level 3 Total Fair Value of Financial Assets: Securities Available for Sale: U.S. Treasury Securities $ 9,986 $ — $ — $ 9,986 Municipal Bonds — 105,565 — 105,565 Mortgage-Backed Securities — 56,719 — 56,719 Corporate Securities — 40,155 — 40,155 SBA Securities — 48,367 — 48,367 Asset-Backed Securities — 3,011 3,011 Interest Rate Swaps — 69 — 69 Total Fair Value of Financial Assets $ 9,986 $ 253,886 $ — $ 263,872 Fair Value of Financial Liabilities: Interest Rate Swaps $ — $ 1,061 $ — $ 1,061 Total Fair Value of Financial Liabilities $ — $ 1,061 $ — $ 1,061 December 31, 2018 Level 1 Level 2 Level 3 Total Fair Value of Financial Assets: Securities Available for Sale: U.S. Treasury Securities $ 17,897 $ — $ — $ 17,897 Municipal Bonds — 118,133 — 118,133 Mortgage-Backed Securities — 47,176 — 47,176 Corporate Securities — 21,118 — 21,118 SBA Securities — 49,054 — 49,054 Interest Rate Swaps — 352 — 352 Total Fair Value of Financial Assets $ 17,897 $ 235,833 $ — $ 253,730 Investment Securities When available, the Company uses quoted market prices to determine the fair value of investment securities; such items are classified in Level 1 of the fair value hierarchy. For the Company’s investments, when quoted prices are not available for identical securities in an active market, the Company determines fair value utilizing vendors who apply matrix pricing for similar bonds where no price is observable or may compile prices from various sources. These models are primarily industry-standard models that consider various assumptions, including time value, yield curve, volatility factors, prepayment speeds, default rates, loss severity, current market, and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially, all of these assumptions are observable in the marketplace and can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Fair values from these models are verified, where possible, against quoted market prices for recent trading activity of assets with similar characteristics to the security being valued. Such methods are generally classified as Level 2. However, when prices from independent sources vary, or cannot be obtained or corroborated, a security is generally classified as Level 3. Interest Rate Swaps Interest rate swaps are traded in over-the-counter markets where quoted market prices are not readily available. For those interest rate swaps, fair value is determined using internally developed models of a third party that uses primarily market observable inputs, such as yield curves and option volatilities, and accordingly are valued using Level 2 inputs. Nonrecurring Basis Certain assets are measured at fair value on a nonrecurring basis. These assets are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment or a change in the amount of previously recognized impairment. The following tables present net impairment losses related to nonrecurring fair value measurements of certain assets at September 30, 2019 and December 31, 2018: September 30, 2019 Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 448 $ — $ 182 Totals $ — $ 448 $ — $ 182 December 31, 2018 Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 426 $ — $ 396 Totals $ — $ 426 $ — $ 396 Impaired Loans In accordance with the provisions of the loan impairment guidance, impairment is measured on loans when it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, or discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceeds the recorded investments in such loans. Impaired loans for which an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. Collateral values are estimated using Level 2 inputs based on customized discounting criteria. Impairment amounts on impaired loans represent specific valuation allowance and write-downs during the period presented on impaired loans that were individually evaluated for impairment based on the estimated fair value of the collateral less estimated selling costs, excluding impaired loans fully charged-off. Foreclosed Assets Foreclosed assets are recorded at fair value based on property appraisals, less estimated selling costs, at the date of the transfer with any impairment amount charged to the allowance for loan losses. Subsequent to the transfer, foreclosed assets are carried at the lower of cost or fair value, less estimated selling costs with changes in fair value or any impairment amount recorded in other noninterest income. Values are estimated using Level 2 inputs based on customized discounting criteria. The carrying value of foreclosed assets is not re-measured to fair value on a recurring basis, but is subject to fair value adjustments when the carrying value exceeds the fair value, less estimated selling costs. Fair Value Disclosure of fair value information about financial instruments, for which it is practicable to estimate that value, is required whether or not recognized in the consolidated balance sheets. In cases where quoted market prices are not available, fair values are based on estimates using present value of cash flow or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimate of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases could not be realized in immediate settlement of the instruments. Certain financial instruments with a fair value that is not practicable to estimate and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented do not necessarily represent the underlying value of the Company. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters that could affect the estimates. Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business. Deposits with no stated maturities are defined as having a fair value equivalent to the amount payable on demand. This prohibits adjusting fair value derived from retaining those deposits for an expected future period of time. This component, commonly referred to as a deposit base intangible, is neither considered in the above amounts nor is it recorded as an intangible asset on the balance sheet. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. The following tables present the carrying amount and estimated fair values of financial instruments at September 30, 2019 and December 31, 2018: September 30, 2019 Fair Value Hierarchy Carrying Estimated Amount Level 1 Level 2 Level 3 Fair Value Financial Assets: Cash and Due From Banks $ 89,619 $ 89,619 $ — $ — $ 89,619 Bank-Owned Certificates of Deposit 2,654 — 2,682 — 2,682 Securities Available for Sale 263,803 9,986 253,817 — 263,803 FHLB Stock, at Cost 8,024 — 8,024 — 8,024 Loans, Net 1,818,306 — 1,820,514 — 1,820,514 Accrued Interest Receivable 6,519 — 6,519 — 6,519 Interest Rate Swaps 69 — 69 — 69 Financial Liabilities: Deposits $ 1,802,236 $ — $ 1,810,361 $ — $ 1,810,361 Notes Payable 13,500 — 13,461 — 13,461 FHLB Advances 141,500 — 146,616 — 146,616 Subordinated Debentures 24,707 — 25,466 — 25,466 Accrued Interest Payable 1,763 — 1,763 — 1,763 Interest Rate Swaps 1,061 — 1,061 — 1,061 December 31, 2018 Fair Value Hierarchy Carrying Estimated Amount Level 1 Level 2 Level 3 Fair Value Financial Assets: Cash and Due From Banks $ 28,444 $ 28,444 $ — $ — $ 28,444 Bank-Owned Certificates of Deposit 3,305 — 3,292 — 3,292 Securities Available for Sale 253,378 17,897 235,481 — 253,378 FHLB Stock, at Cost 7,614 — 7,614 — 7,614 Loans, Net 1,640,385 — 1,634,196 — 1,634,196 Accrued Interest Receivable 6,589 — 6,589 — 6,589 Interest Rate Swaps 352 — 352 — 352 Financial Liabilities: Deposits $ 1,560,934 $ — $ 1,560,488 $ — $ 1,560,488 Federal Funds Purchased 18,000 — 18,000 — 18,000 Notes Payable 15,000 — 15,551 — 15,551 FHLB Advances 124,000 — 124,952 — 124,952 Subordinated Debentures 24,630 — 25,365 — 25,365 Accrued Interest Payable 1,806 — 1,806 — 1,806 The following methods and assumptions were used by the Company to estimate fair value of consolidated financial statements not previously discussed. Cash and due from banks – The carrying amount of cash and cash equivalents approximates their fair value. Bank-owned certificates of deposit – Fair values of bank-owned certificates of deposit are estimated using the discounted cash flow analysis based on current rates for similar types of deposits. FHLB stock – The carrying amount of FHLB stock approximates its fair value. Loans, Net – Fair values for loans are estimated based on discounted cash flows, using interest rates currently being offered for loans with similar terms to borrowers with similar credit quality. Accrued interest receivable – The carrying amount of accrued interest receivable approximates its fair value since it is short term in nature and does not present anticipated credit concerns. Deposits – The fair values disclosed for demand deposits without stated maturities (interest and noninterest transaction, savings, and money market accounts) are equal to the amount payable on demand at the reporting date (their carrying amounts). Fair values for the fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. Federal funds purchased – The carrying amount of federal funds purchased approximates the fair value. Notes payable and subordinated debentures – The fair value of the Company’s notes payable and subordinated debt are estimated using a discounted cash flow analysis, based on the Company’s current incremental borrowing rate for similar types of borrowing arrangements. FHLB advances – The fair values of the Company’s FHLB advances are estimated using discounted cash flow analysis based on the Company’s current incremental borrowing rates for similar types of borrowing agreements. Accrued interest payable – The carrying amount of accrued interest payable approximates its fair value since it is short term in nature. Off-balance sheet instruments – Fair values of the Company’s off-balance sheet instruments (lending commitments and unused lines of credit) are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the counterparties’ credit standing and discounted cash flow analysis. The fair value of these off-balance-sheet items approximates the recorded amounts of the related fees and was not material at September 30, 2019 and December 31, 2018. Limitations – The fair value of a financial instrument is the current amount that would be exchanged between market participants, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Consequently, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company.

Description of the Business a_2

Description of the Business and Summary of Significant Accounting Policies (Policies )	9 Months Ended
	Sep. 30, 2019
Description of the Business and Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10‑Q and, therefore, do not include all disclosures necessary for a complete presentation of the consolidated balance sheets, consolidated statements of income, consolidated statements of comprehensive income, consolidated statements of shareholders’ equity and consolidated statements of cash flows in conformity with U.S. generally accepted accounting principles (“GAAP”). However, all normal recurring adjustments which are, in the opinion of management, necessary for the fair presentation of the interim financial statements have been included. The results of operations for the nine-month period ended September 30, 2019 are not necessarily indicative of the results which may be expected for the entire year. For further information, refer to the consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 14, 2019.
Principles of Consolidation	Principles of Consolidation These consolidated financial statements include the amounts of the Company, the Bank, with locations in Bloomington, Greenwood, Minneapolis (2), St. Louis Park, Orono, and St. Paul, Minnesota, BWB Holdings, LLC, Bridgewater Investment Management, Inc., and Bridgewater Risk Management, Inc. All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates in Preparation of Financial Statements	Use of Estimates in Preparation of Financial Statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term include the valuation of securities, determination of the allowance for loan losses, calculation of deferred tax assets, and fair value of financial instruments.
Impact of Recent Accounting Standards	Impact of Recently Issued Accounting Standards The following accounting standard updates (“ASU”) have been issued by the Financial Accounting Standards Board (“FASB”) and may impact the Company’s consolidated financial statements in future reporting periods. In May 2014, the FASB issued ASU 2014‑09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014‑09”). ASU 2014‑09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014‑09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2015‑14, Revenue from Contracts with Customers (Topic 606) (“ASU 2015‑14”) was issued in August 2015 which defers adoption to annual reporting periods beginning after December 15, 2018 and interim reporting periods beginning after December 15, 2019. The timing of the Company’s revenue recognition is not expected to materially change. The Company’s largest portions of revenue, interest and fees on loans, are specifically excluded from the scope of the guidance, and the Company currently recognizes the majority of the remaining revenue sources in a manner that management believes is consistent with the new guidance. Management believes that revenue recognized under the new guidance will generally approximate revenue recognized under current GAAP. These observations are subject to change as the evaluation is completed. In January 2016, the FASB issued ASU 2016‑01, Financial Instruments—Overall (Subtopic 825‑10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016‑01”). This guidance changes how entities account for equity investments that do not result in consolidation and are not accounted for under the equity method of accounting. Entities will be required to measure these investments at fair value at the end of each reporting period and recognize changes in fair value in net income. A practicability exception will be available for equity investments that do not have readily determinable fair values; however, the exception requires the Company to adjust the carrying amount for impairment and observable price changes in orderly transactions for the identical or a similar investment of the same issuer. This guidance also changes certain disclosure requirements and other aspects of current GAAP. This guidance is effective for fiscal years beginning after December 15, 2018 and for interim reporting periods beginning after December 15, 2019. Early adoption is permitted for only one of the six amendments. The Company is evaluating the impact this new standard will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016‑02, Leases (Topic 842) (“ASU 2016‑02”). The new guidance establishes the principles to report transparent and economically neutral information about the assets and liabilities that arise from leases. Entities will be required to recognize the lease assets and lease liabilities that arise from leases in the statement of financial position and to disclose qualitative and quantitative information about lease transactions, such as information about variable lease payments and options to renew and terminate leases. Also, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements which provides an optional transition method to adopt the new requirements of ASU 2016-02 as of the adoption date with no adjustment to the presentation or disclosure of comparative prior periods included in the financial statement in the period of adoption. The guidance is effective for fiscal years beginning after December 15, 2019 and interim reporting periods beginning after December 15, 2020. The Company’s assets and liabilities will increase based on the present value of the remaining lease payments for leases in place at the adoption date; however, this is not expected to be significant to the Company’s results of operations. In June 2016, the FASB issued ASU 2016‑13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (modified by ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments Credit Losses and ASU 2019-05, Financial Instruments Credit Losses – Targeted Transition Relief .) The amendments in this ASU affect all entities that measure credit losses on financial instruments including loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial asset that has a contractual right to receive cash that is not specifically excluded. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this ASU replace the incurred loss impairment methodology required in current GAAP with a methodology that reflects expected credit losses that requires consideration of a broader range of reasonable and supportable information to estimate credit losses. The amendments in this ASU will affect entities to varying degrees depending on the credit quality of the assets held by the entity, the duration of the assets held, and how the entity applies the current incurred loss methodology. In October, 2019, the FASB voted to approve an amendment to the effective date of ASU No. 2016-13 for smaller reporting companies and non-SEC reporting entities. The amendment would delay the effective date to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. As an emerging growth company, the Company can take advantage of this delay. The final ASU is expected to be issued in November 2019. All entities may adopt the amendments in the ASU early as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Amendments should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. The Company is evaluating the impact this new standard will have on its consolidated financial statements. A steering committee has been established with representation from various departments across the organization to assess and implement the new standard. In January 2017, the FASB issued ASU 2017‑04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The amendments in this ASU were issued to address concerns over the cost and complexity of the two-step goodwill impairment test and resulted in the removal of the second step of the test. The amendments require an entity to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. This ASU is intended to reduce the cost and complexity of the two-step goodwill impairment test and is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2021, with early adoption permitted for testing performed after January 1, 2017. Upon adoption, the amendments should be applied on a prospective basis and the entity is required to disclose the nature of and reason for the change in accounting principle upon transition. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In March 2017, the FASB issued ASU 2017‑08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310‑20): Premium Amortization on Purchased Callable Debt Securities. The amendments in this ASU shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount as discounts continue to be accreted to maturity. This ASU is intended to more closely align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities. In most cases, market participants price securities to the call date that produces the worst yield when the coupon is above current market rates and prices securities to maturity when the coupon is below market rates. As a result, the amendments more closely align interest income recorded on bonds held at a premium or a discount with the economics of the underlying instrument. This ASU is intended to reduce diversity in practice and is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. Upon adoption, the amendments should be applied using a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principles. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In August 2017, the FASB issued ASU 2017‑12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The amendments of this ASU better align an entity’s accounting and financial reporting for hedging activities with the economic objectives of those activities. The ASU is effective for fiscal years beginning after December 15, 2019 and interim reporting periods beginning after December 15, 2020, with early adoption permitted. The Company is evaluating the impact this new standard will have on its consolidated financial statements. In August 2018, the FASB issued ASU 2018‑13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The amendments of this ASU modify the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by these amendments. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In March 2019, the FASB issued ASU No. 2019-01, Leases (Topic 842): Codification Improvements . This ASU pro vides clarifications to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing essential information about leasing transactions. Specifically, this ASU (i) states that for lessors that are not manufacturers or dealers, the fair value of the underlying asset is its cost, less any volume or trade discounts, as long as there isn’t a significant amount of time between acquisition of the asset and lease commencement, (ii) allows for the cash flows received for sales-type and direct financing leases to continue to be presented as results from investing, and (iii) clarifies the transition guidance related to certain interim disclosures provided in the year of adoption. I n October, 2019, the FASB voted to approve an amendment to the effective date of ASU No. 2019-01 for smaller reporting companies and non-SEC reporting entities. The amendment would delay the effective date to fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. As an emerging growth company, the Company can take advantage of this delay. The final ASU is expected to be issued in November 2019. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In July 2019, the FASB issued ASU No Codification Updates to SEC Sections , which amends certain SEC sections or paragraphs within the Accounting Standards Codification to reflect changes in SEC Final Rule Releases No. 33-10532, “Disclosure Update and Simplification,” and 33-10231 and 33-10442, “Investment Company Reporting Modernization.” Other revisions in ASU No. update language in the codification to match the electronic Code of Federal Regulations. The amendments became effective upon addition to the FASB Codification and there is no impact on the consolidated financial statements.
Subsequent Events	Subsequent Events Subsequent events have been evaluated through November 7, 2019, which is the date the consolidated financial statements were available to be issued.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share
Schedule of numerators and denominators for basic and diluted earnings per share computations	The following table presents the numerators and denominators for basic and diluted earnings per share computations for the three and nine months ended September 30, 2019 and 2018: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net Income Available to Common Shareholders $ 7,805 $ 6,463 $ 22,832 $ 19,159 Weighted Average Common Stock Outstanding: Weighted Average Common Stock Outstanding (Basic) 28,820,144 30,059,374 29,535,589 28,640,601 Stock Options 677,817 430,274 645,967 430,275 Weighted Average Common Stock Outstanding (Dilutive) 29,497,961 30,489,648 30,181,556 29,070,876 Basic Earnings per Common Share $ 0.27 $ 0.22 $ 0.77 $ 0.67 Diluted Earnings per Common Share 0.27 0.21 0.76 0.66

Securities (Tables)

Securities (Tables)	9 Months Ended
	Sep. 30, 2019
Securities
Summary of the amortized cost and estimated fair value of securities with gross unrealized gains and losses	The following tables present the amortized cost and estimated fair value of securities with gross unrealized gains and losses at September 30, 2019 and December 31, 2018: September 30, 2019 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Securities Available for Sale: U.S. Treasury Securities $ 9,975 $ 12 $ (1) $ 9,986 Municipal Bonds 98,821 6,766 (22) 105,565 Mortgage-Backed Securities 55,959 917 (157) 56,719 Corporate Securities 39,712 515 (72) 40,155 SBA Securities 48,963 38 (634) 48,367 Asset-Backed Securities 3,008 3 — 3,011 Total Securities Available for Sale $ 256,438 $ 8,251 $ (886) $ 263,803 December 31, 2018 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Securities Available for Sale: U.S. Treasury Securities $ 17,862 $ 54 $ (19) $ 17,897 Municipal Bonds 117,991 1,257 (1,115) 118,133 Mortgage-Backed Securities 48,816 52 (1,692) 47,176 Corporate Securities 21,170 72 (124) 21,118 SBA Securities 49,876 13 (835) 49,054 Total Securities Available for Sale $ 255,715 $ 1,448 $ (3,785) $ 253,378
Summary of fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position	The following tables present the fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2019 and December 31, 2018: Less Than 12 Months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses September 30, 2019 U.S. Treasury Securities $ 4,998 $ (1) $ — $ — $ 4,998 $ (1) Municipal Bonds 429 (1) 1,382 (21) 1,811 (22) Mortgage-Backed Securities 21,335 (117) 3,462 (40) 24,797 (157) Corporate Securities 8,515 (72) — — 8,515 (72) SBA Securities 9,467 (39) 33,575 (595) 43,042 (634) Total Securities Available for Sale $ 44,744 $ (230) $ 38,419 $ (656) $ 83,163 $ (886) Less Than 12 Months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses December 31, 2018 U.S. Treasury Securities $ 14,866 $ (19) $ — $ — $ 14,866 $ (19) Municipal Bonds 15,405 (199) 34,172 (916) 49,577 (1,115) Mortgage-Backed Securities 1,751 (21) 41,776 (1,671) 43,527 (1,692) Corporate Securities 9,063 (74) 1,996 (50) 11,059 (124) SBA Securities 28,186 (366) 15,878 (469) 44,064 (835) Total Securities Available for Sale $ 69,271 $ (679) $ 93,822 $ (3,106) $ 163,093 $ (3,785)
Schedule of contractual maturities of debt	The following is a summary of amortized cost and estimated fair value of debt securities by the lesser of expected call date or contractual maturity as of September 30, 2019. Call date is used when a call of the debt security is expected, which is determined by the Company when the security has a market value above its amortized cost. Contractual maturities will differ from expected maturities for mortgage-backed, SBA securities and asset-backed securities because borrowers may have the right to call or prepay obligations without penalties. September 30, 2019 Amortized Cost Fair Value Due in One Year or Less $ 21,240 $ 21,302 Due After One Year Through Five Years 42,786 43,908 Due After Five Years Through 10 Years 73,733 77,922 Due After 10 Years 10,749 12,574 Subtotal 148,508 155,706 Mortgage-Backed Securities 55,959 56,719 SBA Securities 48,963 48,367 Asset-Backed Securities 3,008 3,011 Totals $ 256,438 $ 263,803
Summary of the proceeds from sales of securities available for sale, as well as gross gains and losses	The following is a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses, for the three and nine months ended September 30, 2019 and 2018: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Proceeds From Sales of Securities $ 2,555 $ 10,640 $ 42,864 $ 21,590 Gross Gains on Sales 58 237 774 289 Gross Losses on Sales — (286) (258) (397)

Loans (Tables)

Loans (Tables)	9 Months Ended
	Sep. 30, 2019
Loans
Summary of components of loans	The following table presents the components of the loan portfolio at September 30, 2019 and December 31, 2018: September 30, December 31, 2019 2018 Commercial $ 291,723 $ 260,833 Construction and Land Development 216,054 210,041 Real Estate Mortgage: 1-4 Family Mortgage 254,782 226,773 Multifamily 456,257 407,934 CRE Owner Occupied 71,209 64,458 CRE Non-owner Occupied 551,992 490,632 Total Real Estate Mortgage Loans 1,334,240 1,189,797 Consumer and Other 4,201 4,260 Total Loans, Gross 1,846,218 1,664,931 Allowance for Loan Losses (22,124) (20,031) Net Deferred Loan Fees (5,788) (4,515) Total Loans, Net $ 1,818,306 $ 1,640,385
Summary of the activity in the allowance for loan losses by segment	The following table presents the activity in the allowance for loan losses, by segment, for the three months ended September 30, 2019 and 2018: Construction CRE CRE and Land 1-‑4 Family Owner Non‑owner Consumer Three Months Ended September 30, 2019 Commercial Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total Allowance for Loan Losses: Beginning Balance $ 3,181 $ 2,246 $ 2,827 $ 4,994 $ 844 $ 6,485 $ 66 $ 719 $ 21,362 Provision for Loan Losses 196 196 (15) 183 5 50 18 267 900 Loans Charged-off (141) — — — — — (3) — (144) Recoveries of Loans 2 — 3 — — — 1 — 6 Total Ending Allowance Balance $ 3,238 $ 2,442 $ 2,815 $ 5,177 $ 849 $ 6,535 $ 82 $ 986 $ 22,124 Three Months Ended September 30, 2018 Allowance for Loan Losses: Beginning Balance $ 2,248 $ 1,965 $ 2,567 $ 3,552 $ 823 $ 5,611 $ 57 $ 843 $ 17,666 Provision for Loan Losses 362 244 (47) 757 — 127 8 (176) 1,275 Loans Charged-off — (1) — — — — (10) — (11) Recoveries of Loans 1 — 16 — — — 2 — 19 Total Ending Allowance Balance $ 2,611 $ 2,208 $ 2,536 $ 4,309 $ 823 $ 5,738 $ 57 $ 667 $ 18,949 The following table presents the activity in the allowance for loan losses, by segment, for the nine months ended September 30, 2019 and 2018: Construction CRE CRE and Land 1-‑4 Family Owner Non‑owner Consumer Nine Months Ended September 30, 2019 Commercial Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total Allowance for Loan Losses: Beginning Balance $ 2,898 $ 2,451 $ 2,597 $ 4,644 $ 808 $ 5,872 $ 65 $ 696 $ 20,031 Provision for Loan Losses 495 (10) 53 533 41 663 35 290 2,100 Loans Charged-off (160) — — — — — (23) — (183) Recoveries of Loans 5 1 165 — — — 5 — 176 Total Ending Allowance Balance $ 3,238 $ 2,442 $ 2,815 $ 5,177 $ 849 $ 6,535 $ 82 $ 986 $ 22,124 Nine Months Ended September 30, 2018 Allowance for Loan Losses: Beginning Balance $ 2,435 $ 1,892 $ 2,317 $ 3,170 $ 956 $ 5,087 $ 60 $ 585 $ 16,502 Provision for Loan Losses 153 674 190 1,139 (133) 651 19 82 2,775 Loans Charged-off — (358) — — — — (26) — (384) Recoveries of Loans 23 — 29 — — — 4 — 56 Total Ending Allowance Balance $ 2,611 $ 2,208 $ 2,536 $ 4,309 $ 823 $ 5,738 $ 57 $ 667 $ 18,949 The following tables present the balance in the allowance for loan losses and the recorded investment in loans, by segment, based on impairment method as of September 30, 2019 and December 31, 2018: Construction CRE CRE and Land 1-‑4 Family Owner Non‑owner Consumer Allowance for Loan Losses at September 30, 2019 Commercial Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total Individually Evaluated for Impairment $ 57 $ 50 $ 60 $ — $ — $ — $ 14 $ — $ 181 Collectively Evaluated for Impairment 3,181 2,392 2,755 5,177 849 6,535 68 986 21,943 Totals $ 3,238 $ 2,442 $ 2,815 $ 5,177 $ 849 $ 6,535 $ 82 $ 986 $ 22,124 Allowance for Loan Losses at December 31, 2018 Individually Evaluated for Impairment $ 8 $ — $ 17 $ — $ 22 $ — $ — $ — $ 47 Collectively Evaluated for Impairment 2,890 2,451 2,580 4,644 786 5,872 65 696 19,984 Totals $ 2,898 $ 2,451 $ 2,597 $ 4,644 $ 808 $ 5,872 $ 65 $ 696 $ 20,031 Construction CRE CRE and Land 1-‑4 Family Owner Non‑owner Consumer Loans at September 30, 2019 Commercial Development Mortgage Multifamily Occupied Occupied and Other Total Individually Evaluated for Impairment $ 132 $ 2,156 $ 1,963 $ — $ 337 $ — $ 14 $ 4,602 Collectively Evaluated for Impairment 291,591 213,898 252,819 456,257 70,872 551,992 4,187 1,841,616 Totals $ 291,723 $ 216,054 $ 254,782 $ 456,257 $ 71,209 $ 551,992 $ 4,201 $ 1,846,218 Loans at December 31, 2018 Individually Evaluated for Impairment $ 8 $ 198 $ 1,676 $ — $ 365 $ — $ 58 $ 2,305 Collectively Evaluated for Impairment 260,825 209,843 225,097 407,934 64,093 490,632 4,202 1,662,626 Totals $ 260,833 $ 210,041 $ 226,773 $ 407,934 $ 64,458 $ 490,632 $ 4,260 $ 1,664,931
Summary of impaired loans by loan segment	The following table presents information regarding total carrying amounts and total unpaid principal balances of impaired loans by loan segment as September 30, 2019 and December 31, 2018: September 30, 2019 December 31, 2018 Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance Loans With No Related Allowance for Loan Losses: Construction and Land Development $ 2,106 $ 2,715 $ — $ 198 $ 807 $ — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 155 155 — 157 157 — 1st REM - 1-4 Family 617 617 — 253 253 — 1st REM - Rentals 758 758 — 957 957 — CRE Owner Occupied 337 337 — 209 209 — Consumer and Other — — — 58 78 — Totals 3,973 4,582 — 1,832 2,461 — Loans With An Allowance for Loan Losses: Commercial 132 247 57 8 8 8 Construction and Land Development 50 50 50 — — — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 305 331 42 309 336 17 1st REM - Rentals 128 128 18 — — — CRE Owner Occupied — — — 156 156 22 Consumer and Other 14 14 14 — — — Totals 629 770 181 473 500 47 Grand Totals $ 4,602 $ 5,352 $ 181 $ 2,305 $ 2,961 $ 47 The following table presents information regarding the average balances and interest income recognized on impaired loans by loan segment for the three and nine months ended September 30, 2019 and 2018: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Average Interest Average Interest Average Interest Average Interest Investment Recognized Investment Recognized Investment Recognized Investment Recognized Loans With No Related Allowance for Loan Losses: Construction and Land Development $ 2,410 $ 35 $ 214 $ — $ 2,734 $ 122 $ 217 $ — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 155 2 157 2 156 6 159 7 1st REM - 1-4 Family 617 6 372 3 617 18 376 8 1st REM - Rentals 760 11 971 12 766 29 981 36 Multifamily — — 65 1 — — 65 2 CRE Owner Occupied 338 5 501 7 406 17 512 21 Consumer and Other — — 64 — — — 67 — Totals 4,280 59 2,344 25 4,679 192 2,377 74 Loans With An Allowance for Loan Losses: Commercial 133 6 14 — 138 7 14 — Construction and Land Development 50 1 — — 50 1 — — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 305 — 322 — 306 — 328 — LOCs and 2nd REM - Rentals — — 64 1 — — 64 2 1st REM - Rentals 128 3 — — 129 3 — — CRE Owner Occupied — — 158 2 — — 158 5 Consumer and Other 14 2 — — 54 2 — — Totals 630 12 558 3 677 13 564 7 Grand Totals $ 4,910 $ 71 $ 2,902 $ 28 $ 5,356 $ 205 $ 2,941 $ 81
Summary of risk category of loans by loan segment, based on the most recent analysis performed by management	The following tables present the risk category of loans by loan segment as of September 30, 2019 and December 31, 2018, based on the most recent analysis performed by management: September 30, 2019 Pass Watch Substandard Doubtful Total Commercial $ 291,569 $ 22 $ 108 $ 24 $ 291,723 Construction and Land Development 213,757 141 2,156 — 216,054 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 30,782 137 — — 30,919 1st REM - 1-4 Family 37,924 125 795 — 38,844 LOCs and 2nd REM - Rentals 13,488 481 460 — 14,429 1st REM - Rentals 168,499 1,382 709 — 170,590 Multifamily 456,257 — — — 456,257 CRE Owner Occupied 69,527 — 1,682 — 71,209 CRE Non-owner Occupied 548,888 3,104 — — 551,992 Consumer and Other 4,187 — 14 — 4,201 Totals $ 1,834,878 $ 5,392 $ 5,924 $ 24 $ 1,846,218 December 31, 2018 Pass Watch Substandard Doubtful Total Commercial $ 260,225 $ 600 $ 8 $ — $ 260,833 Construction and Land Development 207,174 2,669 198 — 210,041 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 30,669 587 — — 31,256 1st REM - 1-4 Family 37,526 126 253 — 37,905 LOCs and 2nd REM - Rentals 11,341 628 474 — 12,443 1st REM - Rentals 142,357 1,854 958 — 145,169 Multifamily 407,934 — — — 407,934 CRE Owner Occupied 62,223 — 2,235 — 64,458 CRE Non-owner Occupied 487,438 3,194 — — 490,632 Consumer and Other 4,202 — 58 — 4,260 Totals $ 1,651,089 $ 9,658 $ 4,184 $ — $ 1,664,931
Summary of aging of the recorded investment in past due loans by loan segment	The following tables present the aging of the recorded investment in past due loans by loan segment as of September 30, 2019 and December 31, 2018: Accruing Interest 30-89 Days 90 Days or September 30, 2019 Current Past Due More Past Due Nonaccrual Total Commercial $ 291,691 $ — $ — $ 32 $ 291,723 Construction and Land Development 215,822 — — 232 216,054 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 30,919 — — — 30,919 1st REM - 1-4 Family 38,844 — — — 38,844 LOCs and 2nd REM - Rentals 14,124 — — 305 14,429 1st REM - Rentals 170,331 — — 259 170,590 Multifamily 456,257 — — — 456,257 CRE Owner Occupied 71,209 — — — 71,209 CRE Non-owner Occupied 551,992 — — — 551,992 Consumer and Other 4,201 — — — 4,201 Totals $ 1,845,390 $ — $ — $ 828 $ 1,846,218 Accruing Interest 30-89 Days 90 Days or December 31, 2018 Current Past Due More Past Due Nonaccrual Total Commercial $ 260,813 $ 12 $ — $ 8 $ 260,833 Construction and Land Development 209,843 — — 198 210,041 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 30,939 — — 317 31,256 1st REM - 1-4 Family 37,705 200 — — 37,905 LOCs and 2nd REM - Rentals 12,443 — — — 12,443 1st REM - Rentals 145,169 — — — 145,169 Multifamily 407,934 — — — 407,934 CRE Owner Occupied 64,360 98 — — 64,458 CRE Non-owner Occupied 490,632 — — — 490,632 Consumer and Other 4,201 1 — 58 4,260 Totals $ 1,664,039 $ 311 $ — $ 581 $ 1,664,931

Deposits (Tables)

Deposits (Tables)	9 Months Ended
	Sep. 30, 2019
Deposits.
Schedule of composition of deposits	The following table presents the composition of deposits at September 30, 2019 and December 31, 2018: September 30, December 31, 2019 2018 Transaction Deposits $ 722,382 $ 548,770 Savings and Money Market Deposits 470,518 402,639 Time Deposits 363,308 318,356 Brokered Deposits 246,028 291,169 Totals $ 1,802,236 $ 1,560,934

Tax Credit Investments (Tables)

Tax Credit Investments (Tables)	9 Months Ended
	Sep. 30, 2019
Tax Credit Investments
Summary of investments in qualified affordable housing projects and other tax credit investments	The following table presents the Company’s investments in qualified affordable housing projects and other tax credit investments at September 30, 2019 and December 31, 2018: September 30, 2019 December 31, 2018 Investment Accounting Method Investment Unfunded Commitment (1) Investment Unfunded Commitment Low Income Housing Tax Credit (LIHTC) Proportional Amortization $ 2,220 $ — $ 2,436 $ — Federal Historic Tax Credit (FHTC) Equity 1,890 3,451 1,814 3,226 Total $ 4,110 $ 3,451 $ 4,250 $ 3,226 (1) All commitments are expected to be paid by the Company by December 31, 2020.
Schedule of amortization expense and tax benefit for qualified affordable housing projects and other tax credit investments	The following table presents the amortization expense and tax benefit recognized for the Company’s qualified affordable housing projects and other tax credit investments for the three and nine months ended September 30, 2019 and 2018: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Amortization Expense (1) LIHTC $ 72 $ 76 $ 216 $ 237 FHTC 530 15 2,097 15 Total $ 602 $ 91 $ 2,313 $ 252 Tax Benefit Recognized (2) LIHTC $ (83) $ (83) $ (248) $ (248) FHTC (641) (12) (2,539) (12) Total $ (724) $ (95) $ (2,787) $ (260) (1) The amortization expense for the LIHTC investments are included in income tax expense. The amortization for the FHTC tax credits are included in noninterest expense. (2) All of the tax benefits recognized are included in income tax expense. The tax benefit recognized for the FHTC investments primarily reflects the tax credits generated from the investments, and excludes the net tax expense/benefit of the investments’ income/loss.

Commitments, Contingencies an_2

Commitments, Contingencies and Credit Risk (Tables)	9 Months Ended
	Sep. 30, 2019
Commitments, Contingencies and Credit Risk
Schedule of commitments outstanding	The following commitments were outstanding at September 30, 2019 and December 31, 2018: September 30, December 31, 2019 2018 Unfunded Commitments Under Lines of Credit $ 491,472 $ 395,032 Letters of Credit 80,324 81,053 Totals $ 571,796 $ 476,085

Stock Options (Tables)

Stock Options (Tables)	9 Months Ended
	Sep. 30, 2019
Stock Options
Summary of valuation assumptions used to determine the fair value of option award	The weighted average assumptions used in the model for valuing stock option grants for the nine months ended September 30, 2019, are as follows: September 30, 2019 Dividend Yield — % Expected Life 7 Years Expected Volatility 21.95 % Risk-Free Interest Rate 1.65 %
Summary of the status of the Company’s stock option plans	The following table presents a summary of the status of the Company’s stock option plans for the nine months ended September 30, 2019: September 30, 2019 Weighted Average Shares Exercise Price Outstanding at Beginning of Year 1,807,100 $ 6.24 Granted 60,000 11.13 Exercised (15,400) 4.00 Forfeitures (8,600) 10.65 Outstanding at Period End 1,843,100 $ 6.39 Options Exercisable at Period End 833,296 $ 4.18
Summary of information pertaining to options outstanding based on range of exercise price	The following table presents information pertaining to options outstanding at September 30, 2019: Options Outstanding Options Exercisable Number Remaining Number Exercise Price Outstanding Contractual Life Exercise Price Outstanding $ 1.65 7,500 2.1 Years $ 1.65 7,500 2.13 80,000 3.5 Years 2.13 80,000 3.00 490,000 4.3 Years 3.00 490,000 3.58 50,000 5.3 Years 3.58 40,000 7.47 1,030,600 8.0 Years 7.47 201,796 13.22 25,000 8.6 Years 13.22 5,000 12.86 45,000 8.9 Years 12.86 9,000 12.94 30,000 9.0 Years 12.94 — 11.59 25,000 9.1 Years 11.59 — 11.15 10,000 9.4 Years 11.15 — 11.13 50,000 9.9 Years 11.13 — Totals 1,843,100 6.8 Years $ 6.39 $ 833,296
Summary of analysis of nonvested options to purchase shares of the Company’s stock issued and outstanding	The following is an analysis of nonvested options to purchase shares of the Company’s stock issued and outstanding for the nine months ended September 30, 2019: Weighted Number of Average Grant Shares Date Fair Value Nonvested Options at December 31, 2018 1,086,000 $ 2.78 Granted 60,000 3.06 Vested (127,596) 1.82 Forfeited (8,600) 3.40 Nonvested Options at September 30, 2019 1,009,804 $ 2.92

Regulatory Capital (Tables)

Regulatory Capital (Tables)	9 Months Ended
	Sep. 30, 2019
Regulatory Capital
Summary of company and the Bank’s capital amounts and ratios	The following tables present the Company and the Bank’s capital amounts and ratios as of September 30, 2019 and December 31, 2018: Minimum Required For Capital Adequacy To be Well Capitalized For Capital Adequacy Purposes Plus Capital Under Prompt Corrective Actual Purposes Conservation Buffer Action Regulations September 30, 2019 Amount Ratio Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Company (Consolidated): Total Risk-Based Capital $ 268,907 13.31 % $ 161,635 8.00 % $ 212,146 10.50 % N/A N/A Tier 1 Risk-Based Capital 227,489 11.26 121,226 6.00 171,737 8.50 N/A N/A Common Equity Tier 1 Capital 227,489 11.26 90,920 4.50 141,431 7.00 N/A N/A Tier 1 Leverage Ratio 227,489 10.53 86,401 4.00 86,401 4.00 N/A N/A Bank: Total Risk-Based Capital $ 251,102 12.44 % $ 161,450 8.00 % $ 211,904 10.50 % $ 201,813 10.00 % Tier 1 Risk-Based Capital 234,391 11.61 121,088 6.00 171,541 8.50 161,450 8.00 Common Equity Tier 1 Capital 234,391 11.61 90,816 4.50 141,269 7.00 131,178 6.50 Tier 1 Leverage Ratio 234,391 10.88 86,197 4.00 86,197 4.00 107,746 5.00 Minimum Required For Capital Adequacy To be Well Capitalized For Capital Adequacy Purposes Plus Capital Under Prompt Corrective Actual Purposes Conservation Buffer Action Regulations December 31, 2018 Amount Ratio Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Company (Consolidated): Total Risk-Based Capital $ 263,909 14.55 % $ 145,111 8.00 % $ 179,121 9.875 % N/A N/A Tier 1 Risk-Based Capital 218,888 12.07 108,833 6.00 142,844 7.875 N/A N/A Common Equity Tier 1 Capital 218,888 12.07 81,625 4.50 115,635 6.375 N/A N/A Tier 1 Leverage Ratio 218,888 11.23 77,971 4.00 77,971 4.00 N/A N/A Bank: Total Risk-Based Capital $ 230,865 12.76 % $ 144,776 8.00 % $ 178,707 9.875 % $ 180,970 10.00 % Tier 1 Risk-Based Capital 210,474 11.63 108,582 6.00 142,514 7.875 144,776 8.00 Common Equity Tier 1 Capital 210,474 11.63 81,436 4.50 115,368 6.375 117,630 6.50 Tier 1 Leverage Ratio 210,474 10.82 77,795 4.00 77,795 4.00 97,244 5.00

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value Measurement
Summary of balances of the assets and liabilities measured at fair value on a recurring basis	The following tables present the balances of the assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018: September 30, 2019 Level 1 Level 2 Level 3 Total Fair Value of Financial Assets: Securities Available for Sale: U.S. Treasury Securities $ 9,986 $ — $ — $ 9,986 Municipal Bonds — 105,565 — 105,565 Mortgage-Backed Securities — 56,719 — 56,719 Corporate Securities — 40,155 — 40,155 SBA Securities — 48,367 — 48,367 Asset-Backed Securities — 3,011 3,011 Interest Rate Swaps — 69 — 69 Total Fair Value of Financial Assets $ 9,986 $ 253,886 $ — $ 263,872 Fair Value of Financial Liabilities: Interest Rate Swaps $ — $ 1,061 $ — $ 1,061 Total Fair Value of Financial Liabilities $ — $ 1,061 $ — $ 1,061 December 31, 2018 Level 1 Level 2 Level 3 Total Fair Value of Financial Assets: Securities Available for Sale: U.S. Treasury Securities $ 17,897 $ — $ — $ 17,897 Municipal Bonds — 118,133 — 118,133 Mortgage-Backed Securities — 47,176 — 47,176 Corporate Securities — 21,118 — 21,118 SBA Securities — 49,054 — 49,054 Interest Rate Swaps — 352 — 352 Total Fair Value of Financial Assets $ 17,897 $ 235,833 $ — $ 253,730
Summary of net impairment losses related to nonrecurring fair value measurements of certain asset	The following tables present net impairment losses related to nonrecurring fair value measurements of certain assets at September 30, 2019 and December 31, 2018: September 30, 2019 Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 448 $ — $ 182 Totals $ — $ 448 $ — $ 182 December 31, 2018 Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 426 $ — $ 396 Totals $ — $ 426 $ — $ 396
Summary of carrying amount and estimated fair values of financial instruments	The following tables present the carrying amount and estimated fair values of financial instruments at September 30, 2019 and December 31, 2018: September 30, 2019 Fair Value Hierarchy Carrying Estimated Amount Level 1 Level 2 Level 3 Fair Value Financial Assets: Cash and Due From Banks $ 89,619 $ 89,619 $ — $ — $ 89,619 Bank-Owned Certificates of Deposit 2,654 — 2,682 — 2,682 Securities Available for Sale 263,803 9,986 253,817 — 263,803 FHLB Stock, at Cost 8,024 — 8,024 — 8,024 Loans, Net 1,818,306 — 1,820,514 — 1,820,514 Accrued Interest Receivable 6,519 — 6,519 — 6,519 Interest Rate Swaps 69 — 69 — 69 Financial Liabilities: Deposits $ 1,802,236 $ — $ 1,810,361 $ — $ 1,810,361 Notes Payable 13,500 — 13,461 — 13,461 FHLB Advances 141,500 — 146,616 — 146,616 Subordinated Debentures 24,707 — 25,466 — 25,466 Accrued Interest Payable 1,763 — 1,763 — 1,763 Interest Rate Swaps 1,061 — 1,061 — 1,061 December 31, 2018 Fair Value Hierarchy Carrying Estimated Amount Level 1 Level 2 Level 3 Fair Value Financial Assets: Cash and Due From Banks $ 28,444 $ 28,444 $ — $ — $ 28,444 Bank-Owned Certificates of Deposit 3,305 — 3,292 — 3,292 Securities Available for Sale 253,378 17,897 235,481 — 253,378 FHLB Stock, at Cost 7,614 — 7,614 — 7,614 Loans, Net 1,640,385 — 1,634,196 — 1,634,196 Accrued Interest Receivable 6,589 — 6,589 — 6,589 Interest Rate Swaps 352 — 352 — 352 Financial Liabilities: Deposits $ 1,560,934 $ — $ 1,560,488 $ — $ 1,560,488 Federal Funds Purchased 18,000 — 18,000 — 18,000 Notes Payable 15,000 — 15,551 — 15,551 FHLB Advances 124,000 — 124,952 — 124,952 Subordinated Debentures 24,630 — 25,365 — 25,365 Accrued Interest Payable 1,806 — 1,806 — 1,806

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share
Net Income Available to Common Shareholders	$ 7,805	$ 6,463	$ 22,832	$ 19,159
Weighted Average Common Stock Outstanding:
Weighted Average Common Stock Outstanding (Basic)	28,820,144	30,059,374	29,535,589	28,640,601
Stock Options	677,817	430,274	645,967	430,275
Weighted Average Common Stock Outstanding (Dilutive)	29,497,961	30,489,648	30,181,556	29,070,876
Basic Earnings per Common Share (in dollars per share)	$ 0.27	$ 0.22	$ 0.77	$ 0.67
Diluted Earnings per Common Share (in dollars per share)	$ 0.27	$ 0.21	$ 0.76	$ 0.66

Securities - Securities Availab

Securities - Securities Available for Sale (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
The amortized cost and estimated fair value of securities with gross unrealized gains and losses
Total	$ 256,438	$ 255,715
Gross Unrealized Gains	8,251	1,448
Gross Unrealized Losses	(886)	(3,785)
Total	263,803	253,378
U.S. Treasury Securities
The amortized cost and estimated fair value of securities with gross unrealized gains and losses
Total	9,975	17,862
Gross Unrealized Gains	12	54
Gross Unrealized Losses	(1)	(19)
Total	9,986	17,897
Municipal Bonds
The amortized cost and estimated fair value of securities with gross unrealized gains and losses
Total	98,821	117,991
Gross Unrealized Gains	6,766	1,257
Gross Unrealized Losses	(22)	(1,115)
Total	105,565	118,133
Mortgage-Backed Securities
The amortized cost and estimated fair value of securities with gross unrealized gains and losses
Total	55,959	48,816
Gross Unrealized Gains	917	52
Gross Unrealized Losses	(157)	(1,692)
Total	56,719	47,176
Corporate Securities
The amortized cost and estimated fair value of securities with gross unrealized gains and losses
Total	39,712	21,170
Gross Unrealized Gains	515	72
Gross Unrealized Losses	(72)	(124)
Total	40,155	21,118
SBA Securities
The amortized cost and estimated fair value of securities with gross unrealized gains and losses
Total	48,963	49,876
Gross Unrealized Gains	38	13
Gross Unrealized Losses	(634)	(835)
Total	48,367	$ 49,054
Asset-Backed Securities
The amortized cost and estimated fair value of securities with gross unrealized gains and losses
Total	3,008
Gross Unrealized Gains	3
Total	$ 3,011

Securities - Continuous Unreali

Securities - Continuous Unrealized Loss Position (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019USD ($)security	Dec. 31, 2018USD ($)security
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position
Less Than 12 Months, Fair Value	$ 44,744	$ 69,271
Less Than 12 Months, Unrealized Losses	(230)	(679)
12 Months or Greater, Fair Value	38,419	93,822
12 Months or Greater, Unrealized Losses	(656)	(3,106)
Fair Value	83,163	163,093
Unrealized Losses	$ (886)	$ (3,785)
Number of debt securities with unrealized losses | security	100	195
Percentage of aggregate depreciation from amortized cost basis	1.10%	2.30%
U.S. Treasury Securities
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position
Less Than 12 Months, Fair Value	$ 4,998	$ 14,866
Less Than 12 Months, Unrealized Losses	(1)	(19)
Fair Value	4,998	14,866
Unrealized Losses	(1)	(19)
Municipal Bonds
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position
Less Than 12 Months, Fair Value	429	15,405
Less Than 12 Months, Unrealized Losses	(1)	(199)
12 Months or Greater, Fair Value	1,382	34,172
12 Months or Greater, Unrealized Losses	(21)	(916)
Fair Value	1,811	49,577
Unrealized Losses	(22)	(1,115)
Mortgage-Backed Securities
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position
Less Than 12 Months, Fair Value	21,335	1,751
Less Than 12 Months, Unrealized Losses	(117)	(21)
12 Months or Greater, Fair Value	3,462	41,776
12 Months or Greater, Unrealized Losses	(40)	(1,671)
Fair Value	24,797	43,527
Unrealized Losses	(157)	(1,692)
Corporate Securities
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position
Less Than 12 Months, Fair Value	8,515	9,063
Less Than 12 Months, Unrealized Losses	(72)	(74)
12 Months or Greater, Fair Value		1,996
12 Months or Greater, Unrealized Losses		(50)
Fair Value	8,515	11,059
Unrealized Losses	(72)	(124)
SBA Securities
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position
Less Than 12 Months, Fair Value	9,467	28,186
Less Than 12 Months, Unrealized Losses	(39)	(366)
12 Months or Greater, Fair Value	33,575	15,878
12 Months or Greater, Unrealized Losses	(595)	(469)
Fair Value	43,042	44,064
Unrealized Losses	$ (634)	$ (835)

Securities - Contractual Maturi

Securities - Contractual Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Contractual maturities, amortized cost
Due in One Year or Less	$ 21,240
Due After One Year Through Five Years	42,786
Due After Five Years Through 10 Years	73,733
Due After 10 Years	10,749
Subtotal	148,508
Totals	256,438	$ 255,715
Contractual maturities, fair value
Due in One Year or Less	21,302
Due After One Year Through Five Years	43,908
Due After Five Years Through 10 Years	77,922
Due After 10 Years	12,574
Subtotal	155,706
Totals	263,803	253,378
Mortgage-Backed Securities
Contractual maturities, amortized cost
Contractual securities	55,959
Totals	55,959	48,816
Contractual maturities, fair value
Contractual securities	56,719
Totals	56,719	47,176
SBA Securities
Contractual maturities, amortized cost
Contractual securities	48,963
Totals	48,963	49,876
Contractual maturities, fair value
Contractual securities	48,367
Totals	48,367	$ 49,054
Asset-Backed Securities
Contractual maturities, amortized cost
Contractual securities	3,008
Totals	3,008
Contractual maturities, fair value
Contractual securities	3,011
Totals	$ 3,011

Securities - Available for Sale

Securities - Available for Sale Securities Gross Realized Gain Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Summary of the proceeds from sales of securities available for sale, as well as gross gains and losses
Proceeds From Sales of Securities	$ 2,555	$ 10,640	$ 42,864	$ 21,590
Gross Gains on Sales	$ 58	237	774	289
Gross Losses on Sales		$ (286)	$ (258)	$ (397)

Loans - Components of loans (De

Loans - Components of loans (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Components of loans
Total Loans, Gross	$ 1,846,218		$ 1,664,931
Allowance for Loan Losses	(22,124)	$ (21,362)	(20,031)	$ (18,949)	$ (17,666)	$ (16,502)
Net Deferred Loan Fees	(5,788)		(4,515)
Total Loans, Net	1,818,306		1,640,385
Commercial
Components of loans
Total Loans, Gross	291,723		260,833
Allowance for Loan Losses	(3,238)	(3,181)	(2,898)	(2,611)	(2,248)	(2,435)
Construction and Land Development
Components of loans
Total Loans, Gross	216,054		210,041
Allowance for Loan Losses	(2,442)	(2,246)	(2,451)	(2,208)	(1,965)	(1,892)
Real Estate Mortgage
Components of loans
Total Loans, Gross	1,334,240		1,189,797
1-4 Family Mortgage
Components of loans
Total Loans, Gross	254,782		226,773
Allowance for Loan Losses	(2,815)	(2,827)	(2,597)	(2,536)	(2,567)	(2,317)
Multifamily
Components of loans
Total Loans, Gross	456,257		407,934
Allowance for Loan Losses	(5,177)	(4,994)	(4,644)	(4,309)	(3,552)	(3,170)
CRE Owner Occupied
Components of loans
Total Loans, Gross	71,209		64,458
Allowance for Loan Losses	(849)	(844)	(808)	(823)	(823)	(956)
CRE Non-owner Occupied
Components of loans
Total Loans, Gross	551,992		490,632
Allowance for Loan Losses	(6,535)	(6,485)	(5,872)	(5,738)	(5,611)	(5,087)
Consumer and other
Components of loans
Total Loans, Gross	4,201		4,260
Allowance for Loan Losses	$ (82)	$ (66)	$ (65)	$ (57)	$ (57)	$ (60)

Loans - Allowance for loan loss

Loans - Allowance for loan losses by segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Sep. 30, 2019	Dec. 31, 2018
Allowance for Loan Losses:
Beginning Balance	$ 21,362	$ 17,666	$ 20,031	$ 16,502	$ 16,502
Provision for Loan Losses	900	1,275	2,100	2,775
Loans Charged-off	(144)	(11)	(183)	(384)
Recoveries of Loans	6	19	176	56
Total Ending Allowance Balance	22,124	18,949	22,124	18,949	20,031
Allowance for loan losses and the recorded investment
Allowance for Loan Losses and Loans, Individually Evaluated for Impairment						$ 181	$ 47
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment						21,943	19,984
Loans and Leases Receivable, Allowance, Total	21,362	17,666	20,031	16,502	16,502	22,124	20,031
Loans, Individually Evaluated for Impairment						4,602	2,305
Loans, Collectively Evaluated for Impairment						1,841,616	1,662,626
Totals						1,846,218	1,664,931
Commercial
Allowance for Loan Losses:
Beginning Balance	3,181	2,248	2,898	2,435	2,435
Provision for Loan Losses	196	362	495	153
Loans Charged-off	(141)		(160)
Recoveries of Loans	2	1	5	23
Total Ending Allowance Balance	3,238	2,611	3,238	2,611	2,898
Allowance for loan losses and the recorded investment
Allowance for Loan Losses and Loans, Individually Evaluated for Impairment						57	8
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment						3,181	2,890
Loans and Leases Receivable, Allowance, Total	3,181	2,248	2,898	2,435	2,435	3,238	2,898
Loans, Individually Evaluated for Impairment						132	8
Loans, Collectively Evaluated for Impairment						291,591	260,825
Totals						291,723	260,833
Construction and Land Development
Allowance for Loan Losses:
Beginning Balance	2,246	1,965	2,451	1,892	1,892
Provision for Loan Losses	196	244	(10)	674
Loans Charged-off		(1)		(358)
Recoveries of Loans			1
Total Ending Allowance Balance	2,442	2,208	2,442	2,208	2,451
Allowance for loan losses and the recorded investment
Allowance for Loan Losses and Loans, Individually Evaluated for Impairment						50
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment						2,392	2,451
Loans and Leases Receivable, Allowance, Total	2,246	1,965	2,451	1,892	1,892	2,442	2,451
Loans, Individually Evaluated for Impairment						2,156	198
Loans, Collectively Evaluated for Impairment						213,898	209,843
Totals						216,054	210,041
1-4 Family Mortgage
Allowance for Loan Losses:
Beginning Balance	2,827	2,567	2,597	2,317	2,317
Provision for Loan Losses	(15)	(47)	53	190
Recoveries of Loans	3	16	165	29
Total Ending Allowance Balance	2,815	2,536	2,815	2,536	2,597
Allowance for loan losses and the recorded investment
Allowance for Loan Losses and Loans, Individually Evaluated for Impairment						60	17
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment						2,755	2,580
Loans and Leases Receivable, Allowance, Total	2,827	2,567	2,597	2,317	2,317	2,815	2,597
Loans, Individually Evaluated for Impairment						1,963	1,676
Loans, Collectively Evaluated for Impairment						252,819	225,097
Totals						254,782	226,773
Multifamily
Allowance for Loan Losses:
Beginning Balance	4,994	3,552	4,644	3,170	3,170
Provision for Loan Losses	183	757	533	1,139
Total Ending Allowance Balance	5,177	4,309	5,177	4,309	4,644
Allowance for loan losses and the recorded investment
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment						5,177	4,644
Loans and Leases Receivable, Allowance, Total	4,994	3,552	4,644	3,170	3,170	5,177	4,644
Loans, Collectively Evaluated for Impairment						456,257	407,934
Totals						456,257	407,934
CRE Owner Occupied
Allowance for Loan Losses:
Beginning Balance	844	823	808	956	956
Provision for Loan Losses	5		41	(133)
Total Ending Allowance Balance	849	823	849	823	808
Allowance for loan losses and the recorded investment
Allowance for Loan Losses and Loans, Individually Evaluated for Impairment							22
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment						849	786
Loans and Leases Receivable, Allowance, Total	844	823	808	956	956	849	808
Loans, Individually Evaluated for Impairment						337	365
Loans, Collectively Evaluated for Impairment						70,872	64,093
Totals						71,209	64,458
CRE Non-owner Occupied
Allowance for Loan Losses:
Beginning Balance	6,485	5,611	5,872	5,087	5,087
Provision for Loan Losses	50	127	663	651
Total Ending Allowance Balance	6,535	5,738	6,535	5,738	5,872
Allowance for loan losses and the recorded investment
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment						6,535	5,872
Loans and Leases Receivable, Allowance, Total	6,485	5,611	5,872	5,087	5,087	6,535	5,872
Loans, Collectively Evaluated for Impairment						551,992	490,632
Totals						551,992	490,632
Consumer and other
Allowance for Loan Losses:
Beginning Balance	66	57	65	60	60
Provision for Loan Losses	18	8	35	19
Loans Charged-off	(3)	(10)	(23)	(26)
Recoveries of Loans	1	2	5	4
Total Ending Allowance Balance	82	57	82	57	65
Allowance for loan losses and the recorded investment
Allowance for Loan Losses and Loans, Individually Evaluated for Impairment						14
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment						68	65
Loans and Leases Receivable, Allowance, Total	66	57	65	60	60	82	65
Loans, Individually Evaluated for Impairment						14	58
Loans, Collectively Evaluated for Impairment						4,187	4,202
Totals						4,201	4,260
Unallocated
Allowance for Loan Losses:
Beginning Balance	719	843	696	585	585
Provision for Loan Losses	267	(176)	290	82
Total Ending Allowance Balance	986	667	986	667	696
Allowance for loan losses and the recorded investment
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment						986	696
Loans and Leases Receivable, Allowance, Total	$ 719	$ 843	$ 696	$ 585	$ 585	$ 986	$ 696

Loans - Impaired loans by loan

Loans - Impaired loans by loan segment (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Impaired loans by loan segment
Loans With No Related Allowance for Loan Losses, Recorded Investment	$ 3,973	$ 1,832
Loans With No Related Allowance for Loan Losses, Principal Balance	4,582	2,461
Total Recorded Investment	4,602	2,305
Total Principal Balance	5,352	2,961
Related Allowance	181	47
Commercial
Impaired loans by loan segment
Loans With An Allowance for Loan Losses, Recorded Investment	132	8
Loans With An Allowance for Loan Losses, Principal Balance	247	8
Related Allowance	57	8
Construction and Land Development
Impaired loans by loan segment
Loans With No Related Allowance for Loan Losses, Recorded Investment	2,106	198
Loans With No Related Allowance for Loan Losses, Principal Balance	2,715	807
Loans With An Allowance for Loan Losses, Recorded Investment	50
Loans With An Allowance for Loan Losses, Principal Balance	50
Related Allowance	50
Real Estate Mortgage
Impaired loans by loan segment
Loans With An Allowance for Loan Losses, Recorded Investment	629	473
Loans With An Allowance for Loan Losses, Principal Balance	770	500
Related Allowance	181	47
HELOC and 1-4 Family Junior Mortgage
Impaired loans by loan segment
Loans With No Related Allowance for Loan Losses, Recorded Investment	155	157
Loans With No Related Allowance for Loan Losses, Principal Balance	155	157
Loans With An Allowance for Loan Losses, Recorded Investment	305	309
Loans With An Allowance for Loan Losses, Principal Balance	331	336
Related Allowance	42	17
1st REM - 1-4 Family
Impaired loans by loan segment
Loans With No Related Allowance for Loan Losses, Recorded Investment	617	253
Loans With No Related Allowance for Loan Losses, Principal Balance	617	253
1st REM - Rentals
Impaired loans by loan segment
Loans With No Related Allowance for Loan Losses, Recorded Investment	758	957
Loans With No Related Allowance for Loan Losses, Principal Balance	758	957
Loans With An Allowance for Loan Losses, Recorded Investment	128
Loans With An Allowance for Loan Losses, Principal Balance	128
Related Allowance	18
Consumer and other
Impaired loans by loan segment
Loans With No Related Allowance for Loan Losses, Recorded Investment	14
Loans With No Related Allowance for Loan Losses, Principal Balance	14	78
Loans With An Allowance for Loan Losses, Recorded Investment		58
Related Allowance	14
CRE Owner Occupied
Impaired loans by loan segment
Loans With No Related Allowance for Loan Losses, Recorded Investment	337	209
Loans With No Related Allowance for Loan Losses, Principal Balance	$ 337	209
Loans With An Allowance for Loan Losses, Recorded Investment		156
Loans With An Allowance for Loan Losses, Principal Balance		156
Related Allowance		$ 22

Loans - Average balances and in

Loans - Average balances and interest income recognized (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Impaired loans by loan segment
Loans With No Related Allowance for Loan Losses, Average Investment	$ 4,280	$ 2,344	$ 4,679	$ 2,377
Loans With No Related Allowance for Loan Losses, Interest Recognized	59	25	192	74
Total Average Investment	4,910	2,902	5,356	2,941
Total Interest Recognized	71	28	205	81
Commercial
Impaired loans by loan segment
Loans With An Allowance for Loan Losses, Average Investment	133	14	138	14
Loans With An Allowance for Loan Losses, Interest Recognized	6		7
Construction and Land Development
Impaired loans by loan segment
Loans With No Related Allowance for Loan Losses, Average Investment	2,410	214	2,734	217
Loans With No Related Allowance for Loan Losses, Interest Recognized	35		122
Loans With An Allowance for Loan Losses, Average Investment	50		50
Loans With An Allowance for Loan Losses, Interest Recognized	1		1
Real Estate Mortgage
Impaired loans by loan segment
Loans With An Allowance for Loan Losses, Average Investment	630	558	677	564
Loans With An Allowance for Loan Losses, Interest Recognized	12	3	13	7
HELOC and 1-4 Family Junior Mortgage
Impaired loans by loan segment
Loans With No Related Allowance for Loan Losses, Average Investment	155	157	156	159
Loans With No Related Allowance for Loan Losses, Interest Recognized	2	2	6	7
Loans With An Allowance for Loan Losses, Average Investment	305	322	306	328
LOCs and 2nd REM - Rentals
Impaired loans by loan segment
Loans With An Allowance for Loan Losses, Average Investment		64
Loans With An Allowance for Loan Losses, Interest Recognized		1
Total Average Investment				64
Total Interest Recognized				2
1st REM - 1-4 Family
Impaired loans by loan segment
Loans With No Related Allowance for Loan Losses, Average Investment	617	372	617	376
Loans With No Related Allowance for Loan Losses, Interest Recognized	6	3	18	8
1st REM - Rentals
Impaired loans by loan segment
Loans With No Related Allowance for Loan Losses, Average Investment	760	971	766	981
Loans With No Related Allowance for Loan Losses, Interest Recognized	11	12	29	36
Loans With An Allowance for Loan Losses, Average Investment	128		129
Loans With An Allowance for Loan Losses, Interest Recognized	3		3
Multifamily
Impaired loans by loan segment
Loans With No Related Allowance for Loan Losses, Average Investment		65		65
Loans With No Related Allowance for Loan Losses, Interest Recognized		1		2
CRE Owner Occupied
Impaired loans by loan segment
Loans With No Related Allowance for Loan Losses, Average Investment	338	501	406	512
Loans With No Related Allowance for Loan Losses, Interest Recognized	5	7	17	21
Loans With An Allowance for Loan Losses, Average Investment		158		158
Loans With An Allowance for Loan Losses, Interest Recognized		2		5
Consumer and other
Impaired loans by loan segment
Loans With No Related Allowance for Loan Losses, Average Investment	14	$ 64	54	$ 67
Loans With No Related Allowance for Loan Losses, Interest Recognized	$ 2		$ 2

Loans - Risk category of loans

Loans - Risk category of loans by loan segment (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	$ 1,846,218	$ 1,664,931
Pass
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	1,834,878	1,651,089
Watch
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	5,392	9,658
Substandard
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	5,924	4,184
Doubtful
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	24
Commercial
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	291,723	260,833
Commercial | Pass
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	291,569	260,225
Commercial | Watch
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	22	600
Commercial | Substandard
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	108	8
Commercial | Doubtful
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	24
Construction and Land Development
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	216,054	210,041
Construction and Land Development | Pass
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	213,757	207,174
Construction and Land Development | Watch
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	141	2,669
Construction and Land Development | Substandard
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	2,156	198
HELOC and 1-4 Family Junior Mortgage
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	30,919	31,256
HELOC and 1-4 Family Junior Mortgage | Pass
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	30,782	30,669
HELOC and 1-4 Family Junior Mortgage | Watch
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	137	587
1st REM - 1-4 Family
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	38,844	37,905
1st REM - 1-4 Family | Pass
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	37,924	37,526
1st REM - 1-4 Family | Watch
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	125	126
1st REM - 1-4 Family | Substandard
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	795	253
LOCs and 2nd REM - Rentals
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	14,429	12,443
LOCs and 2nd REM - Rentals | Pass
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	13,488	11,341
LOCs and 2nd REM - Rentals | Watch
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	481	628
LOCs and 2nd REM - Rentals | Substandard
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	460	474
1st REM - Rentals
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	170,590	145,169
1st REM - Rentals | Pass
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	168,499	142,357
1st REM - Rentals | Watch
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	1,382	1,854
1st REM - Rentals | Substandard
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	709	958
Multifamily
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	456,257	407,934
Multifamily | Pass
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	456,257	407,934
CRE Owner Occupied
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	71,209	64,458
CRE Owner Occupied | Pass
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	69,527	62,223
CRE Owner Occupied | Substandard
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	1,682	2,235
CRE Non-owner Occupied
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	551,992	490,632
CRE Non-owner Occupied | Pass
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	548,888	487,438
CRE Non-owner Occupied | Watch
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	3,104	3,194
Consumer and other
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	4,201	4,260
Consumer and other | Pass
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	4,187	4,202
Consumer and other | Substandard
Risk category of loans by loan segment, based on the most recent analysis performed by management
Totals	$ 14	$ 58

Loans - Recorded investment in

Loans - Recorded investment in past due loans by loan segment (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Aging of the recorded investment in past due loans by loan segment
Accruing Interest, Current	$ 1,845,390	$ 1,664,039
Nonaccrual	828	581
Totals	1,846,218	1,664,931
30-89 Days Past Due
Aging of the recorded investment in past due loans by loan segment
Accruing Interest, past due		311
Commercial
Aging of the recorded investment in past due loans by loan segment
Accruing Interest, Current	291,691	260,813
Nonaccrual	32	8
Totals	291,723	260,833
Commercial | 30-89 Days Past Due
Aging of the recorded investment in past due loans by loan segment
Accruing Interest, past due		12
Construction and Land Development
Aging of the recorded investment in past due loans by loan segment
Accruing Interest, Current	215,822	209,843
Nonaccrual	232	198
Totals	216,054	210,041
HELOC and 1-4 Family Junior Mortgage
Aging of the recorded investment in past due loans by loan segment
Accruing Interest, Current	30,919	30,939
Nonaccrual		317
Totals	30,919	31,256
1st REM - 1-4 Family
Aging of the recorded investment in past due loans by loan segment
Accruing Interest, Current	38,844	37,705
Totals	38,844	37,905
1st REM - 1-4 Family | 30-89 Days Past Due
Aging of the recorded investment in past due loans by loan segment
Accruing Interest, past due		200
LOCs and 2nd REM - Rentals
Aging of the recorded investment in past due loans by loan segment
Accruing Interest, Current	14,124	12,443
Nonaccrual	305
Totals	14,429	12,443
1st REM - Rentals
Aging of the recorded investment in past due loans by loan segment
Accruing Interest, Current	170,331	145,169
Nonaccrual	259
Totals	170,590	145,169
Multifamily
Aging of the recorded investment in past due loans by loan segment
Accruing Interest, Current	456,257	407,934
Totals	456,257	407,934
CRE Owner Occupied
Aging of the recorded investment in past due loans by loan segment
Accruing Interest, Current	71,209	64,360
Totals	71,209	64,458
CRE Owner Occupied | 30-89 Days Past Due
Aging of the recorded investment in past due loans by loan segment
Accruing Interest, past due		98
CRE Non-owner Occupied
Aging of the recorded investment in past due loans by loan segment
Accruing Interest, Current	551,992	490,632
Totals	551,992	490,632
Consumer and other
Aging of the recorded investment in past due loans by loan segment
Accruing Interest, Current	4,201	4,201
Nonaccrual		58
Totals	$ 4,201	4,260
Consumer and other | 30-89 Days Past Due
Aging of the recorded investment in past due loans by loan segment
Accruing Interest, past due		$ 1

Loans - Summary of loans modifi

Loans - Summary of loans modified in TDRs and those restructurings (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019USD ($)loan	Dec. 31, 2018USD ($)loan
Loans
Troubled Debt Restructurings, Number of Loans	3	3
New Troubled Debt Restructurings, Post-Modification Outstanding Balance | $	$ 460	$ 437
New Troubled Debt Restructurings, Number of Loans	1
Troubled Debt Restructurings That Subsequently Defaulted Within 12 Months of The Restructure Date, Number of Loans	0

Deposits (Details)

Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Deposits, by Type [Abstract]
Transaction Deposits	$ 722,382	$ 548,770
Savings and Money Market Deposits	470,518	402,639
Time Deposits	363,308	318,356
Brokered Deposits	246,028	291,169
Total Deposits	$ 1,802,236	$ 1,560,934

Tax Credit Investments - Invest

Tax Credit Investments - Investments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Investments in qualified affordable housing projects and other tax credit investments
Investment	$ 4,110		$ 4,110		$ 4,250
Unfunded Commitment	3,451		3,451		3,226
Amortization Expense	602	$ 91	2,313	$ 252
Tax Benefit Recognized	(724)	(95)	(2,787)	(260)
Low Income Housing Tax Credit (LIHTC)
Investments in qualified affordable housing projects and other tax credit investments
Investment	2,220		2,220		2,436
Amortization Expense	72	76	216	237
Tax Benefit Recognized	(83)	(83)	(248)	(248)
Federal Historic Tax Credit (FHTC)
Investments in qualified affordable housing projects and other tax credit investments
Investment	1,890		1,890		1,814
Unfunded Commitment	3,451		3,451		$ 3,226
Amortization Expense	530	15	2,097	15
Tax Benefit Recognized	$ (641)	$ (12)	$ (2,539)	$ (12)

Commitments, Contingencies an_3

Commitments, Contingencies and Credit Risk (Details) - USD ($) $ in Thousands	9 Months Ended		13 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Dec. 31, 2018
Commitments Outstanding
Unfunded Commitments Under Lines of Credit	$ 491,472		$ 491,472	$ 395,032
Letters of Credit	80,324		80,324	81,053
Totals	571,796		571,796	476,085
Payment of construction costs	$ 13,352	$ 1,832
Construction of corporate headquarters office
Commitments Outstanding
Percentage of cost of work	3.75%
Commitment under contract	$ 23,000
Payment of construction costs			12,437
Federal Home Loan Bank Advances
Commitments Outstanding
Outstanding letters of credit	$ 85,809		$ 85,809	$ 129,152

Stock Options (Details)

Stock Options (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019USD ($)itemshares	Dec. 31, 2018shares	Dec. 31, 2017shares
Stock Options
Number of banks in the index | item	44
Minimum
Stock Options
Market capitalization | $	$ 470
Maximum
Stock Options
Market capitalization | $	$ 4,500
2017 Plan
Stock Options
Number of shares authorized for grant options to its directors, officers, and employees | shares			1,500,000
Term of award	10 years
Vesting period	5 years
Number of unissued shares of the Company’s common stock authorized for option grants | shares	488,600	540,000

Stock Options - Black-Scholes A

Stock Options - Black-Scholes Assumptions (Details)	9 Months Ended
	Sep. 30, 2019
Black-Scholes Assumptions
Expected Life	7 years
Expected Volatility	21.95%
Risk-Free Interest Rate	1.65%

Stock Options - Stock Option Pl

Stock Options - Stock Option Plans (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Stock Option Plans
Outstanding at Beginning of Year			1,807,100
Granted			60,000
Exercised			(15,400)
Forfeitures			(8,600)
Outstanding at Period End	1,843,100		1,843,100
Options Exercisable at Period End	833,296		833,296
Weighted Average Exercise Price
Outstanding at Beginning of Year			$ 6.24
Granted			11.13
Exercised			4
Forfeitures			10.65
Outstanding at Period End	$ 6.39		6.39
Options Exercisable at Period End	$ 4.18		$ 4.18
Compensation expense for stock options	$ 175	$ 199	$ 524	$ 588

Stock Options - Exercise Price

Stock Options - Exercise Price (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares
Exercise Price
Options Outstanding, Number Outstanding	1,843,100
Options Outstanding, Remaining Contractual Life	6 years 9 months 18 days
Options Outstanding, Exercise Price | $ / shares	$ 6.39
Options Exercisable, Number Outstanding	833,296
Total unrecognized compensation cost | $	$ 2,293
Total unrecognized compensation cost expected to be recognized (in years)	5 years
1.65
Exercise Price
Options Outstanding, Number Outstanding	7,500
Options Outstanding, Remaining Contractual Life	2 years 1 month 6 days
Options Outstanding, Exercise Price | $ / shares	$ 1.65
Options Exercisable, Number Outstanding	7,500
2.13
Exercise Price
Options Outstanding, Number Outstanding	80,000
Options Outstanding, Remaining Contractual Life	3 years 6 months
Options Outstanding, Exercise Price | $ / shares	$ 2.13
Options Exercisable, Number Outstanding	80,000
3.00
Exercise Price
Options Outstanding, Number Outstanding	490,000
Options Outstanding, Remaining Contractual Life	4 years 3 months 18 days
Options Outstanding, Exercise Price | $ / shares	$ 3
Options Exercisable, Number Outstanding	490,000
3.58
Exercise Price
Options Outstanding, Number Outstanding	50,000
Options Outstanding, Remaining Contractual Life	5 years 3 months 18 days
Options Outstanding, Exercise Price | $ / shares	$ 3.58
Options Exercisable, Number Outstanding	40,000
7.47
Exercise Price
Options Outstanding, Number Outstanding	1,030,600
Options Outstanding, Remaining Contractual Life	8 years
Options Outstanding, Exercise Price | $ / shares	$ 7.47
Options Exercisable, Number Outstanding	201,796
13.22
Exercise Price
Options Outstanding, Number Outstanding	25,000
Options Outstanding, Remaining Contractual Life	8 years 7 months 6 days
Options Outstanding, Exercise Price | $ / shares	$ 13.22
Options Exercisable, Number Outstanding	5,000
12.86
Exercise Price
Options Outstanding, Number Outstanding	45,000
Options Outstanding, Remaining Contractual Life	8 years 10 months 24 days
Options Outstanding, Exercise Price | $ / shares	$ 12.86
Options Exercisable, Number Outstanding	9,000
12.94
Exercise Price
Options Outstanding, Number Outstanding	30,000
Options Outstanding, Remaining Contractual Life	9 years
Options Outstanding, Exercise Price | $ / shares	$ 12.94
11.59
Exercise Price
Options Outstanding, Number Outstanding	25,000
Options Outstanding, Remaining Contractual Life	9 years 1 month 6 days
Options Outstanding, Exercise Price | $ / shares	$ 11.59
11.15
Exercise Price
Options Outstanding, Number Outstanding	10,000
Options Outstanding, Remaining Contractual Life	9 years 4 months 24 days
Options Outstanding, Exercise Price | $ / shares	$ 11.15
11.13
Exercise Price
Options Outstanding, Number Outstanding	50,000
Options Outstanding, Remaining Contractual Life	9 years 10 months 24 days
Options Outstanding, Exercise Price | $ / shares	$ 11.13

Stock Options - Non-Vested Opti

Stock Options - Non-Vested Options (Details)	9 Months Ended
	Sep. 30, 2019$ / sharesshares
Number of Shares
Nonvested Options at December 31, 2018 | shares	1,086,000
Granted | shares	60,000
Vested | shares	(127,596)
Forfeited | shares	(8,600)
Nonvested Options at September 30, 2019 | shares	1,009,804
Weighted Average Grant Date Fair Value
Nonvested Options at December 31, 2018 | $ / shares	$ 2.78
Granted | $ / shares	3.06
Vested | $ / shares	1.82
Forfeited | $ / shares	3.40
Nonvested Options at September 30, 2019 | $ / shares	$ 2.92

Regulatory Capital - Capital Am

Regulatory Capital - Capital Amounts and Ratios (Details) - USD ($) $ in Thousands	Jan. 01, 2019	Dec. 31, 2018	Sep. 30, 2019
Total Risk-Based Capital
Total Risk-Based Capital, Actual amount		$ 263,909	$ 268,907
Total Risk-Based Capital, For Capital Adequacy Purposes, amount		145,111	161,635
Total Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conversion Buffer, amount		$ 179,121	$ 212,146
Total Risk-Based Capital, Actual ratio		14.55%	13.31%
Total Risk-Based Capital, For Capital Adequacy Purposes, Ratio		8.00%	8.00%
Total Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio		9.875%	10.50%
Tier 1 Risk-Based Capital
Tier One Risk Based Capital		$ 218,888	$ 227,489
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes, amount		108,833	121,226
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount		$ 142,844	$ 171,737
Tier 1 Risk-Based Capital, Actual ratio		12.07%	11.26%
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes, Ratio		6.00%	6.00%
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio		7.875%	8.50%
Common Equity Tier 1 Capital
Common Equity Tier 1 Capital, Actual amount		$ 218,888	$ 227,489
Common Equity Tier 1 Capital, For Capital Adequacy Purposes, amount		81,625	90,920
Common Equity Tier 1 Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount		$ 115,635	$ 141,431
Common Equity Tier 1 Capital, Actual ratio		12.07%	11.26%
Common Equity Tier 1 Capital, For Capital Adequacy Purposes, Ratio		4.50%	4.50%
Common Equity Tier 1 Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio		6.375%	7.00%
Leverage Ratio
Tier 1 Leverage Ratio, Actual amount		$ 218,888	$ 227,489
Tier 1 Leverage Ratio, For Capital Adequacy Purposes, amount		77,971	86,401
Tier 1 Leverage Ratio, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount		$ 77,971	$ 86,401
Tier 1 Leverage Ratio, Actual ratio		11.23%	10.53%
Tier 1 Leverage Ratio, For Capital Adequacy Purposes, Ratio		4.00%	4.00%
Tier 1 Leverage Ratio, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio		4.00%	4.00%
Capital conservation buffer (as a percent)	2.50%	1.875%
Bank
Total Risk-Based Capital
Total Risk-Based Capital, Actual amount		$ 230,865	$ 251,102
Total Risk-Based Capital, For Capital Adequacy Purposes, amount		144,776	161,450
Total Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conversion Buffer, amount		178,707	211,904
Total Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, amount		$ 180,970	$ 201,813
Total Risk-Based Capital, Actual ratio		12.76%	12.44%
Total Risk-Based Capital, For Capital Adequacy Purposes, Ratio		8.00%	8.00%
Total Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio		9.875%	10.50%
Total Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio		10.00%	10.00%
Tier 1 Risk-Based Capital
Tier One Risk Based Capital		$ 210,474	$ 234,391
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes, amount		108,582	121,088
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount		142,514	171,541
Tier 1 Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, amount		$ 144,776	$ 161,450
Tier 1 Risk-Based Capital, Actual ratio		11.63%	11.61%
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes, Ratio		6.00%	6.00%
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio		7.875%	8.50%
Tier 1 Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio		8.00%	8.00%
Common Equity Tier 1 Capital
Common Equity Tier 1 Capital, Actual amount		$ 210,474	$ 234,391
Common Equity Tier 1 Capital, For Capital Adequacy Purposes, amount		81,436	90,816
Common Equity Tier 1 Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount		115,368	141,269
Common Equity Tier 1 Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, amount		$ 117,630	$ 131,178
Common Equity Tier 1 Capital, Actual ratio		11.63%	11.61%
Common Equity Tier 1 Capital, For Capital Adequacy Purposes, Ratio		4.50%	4.50%
Common Equity Tier 1 Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio		6.375%	7.00%
Common Equity Tier 1 Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio		6.50%	6.50%
Leverage Ratio
Tier 1 Leverage Ratio, Actual amount		$ 210,474	$ 234,391
Tier 1 Leverage Ratio, For Capital Adequacy Purposes, amount		77,795	86,197
Tier 1 Leverage Ratio, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount		77,795	86,197
Tier 1 Leverage Ratio, To be Well Capitalized Under Prompt Corrective Action Regulations, amount		$ 97,244	$ 107,746
Tier 1 Leverage Ratio, Actual ratio		10.82%	10.88%
Tier 1 Leverage Ratio, For Capital Adequacy Purposes, Ratio		4.00%	4.00%
Tier 1 Leverage Ratio, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio		4.00%	4.00%
Tier 1 Leverage Ratio, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio		5.00%	5.00%

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands	Jul. 23, 2019	Jan. 22, 2019	Sep. 30, 2019	Sep. 30, 2019
Stock Repurchase Program
Increase in stock repurchase authorized amount	$ 10,000
Authorized stock repurchase amount	$ 25,000	$ 15,000
Authorized repurchase program period		24 months
Shares repurchased			205,567	1,331,512
Percentage of shares outstanding of entity			1.00%	5.00%
Weighted average share repurchase price			$ 11.41	$ 11.23
Stock Repurchases			$ 2,345	$ 14,959
Remaining repurchase amount			$ 10,000	$ 10,000

Fair Value Measurement - Recurr

Fair Value Measurement - Recurring (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Balances of the assets and liabilities measured at fair value on a recurring basis
Securities Available for Sale, at Fair Value	$ 263,803	$ 253,378
Interest Rate Swaps, Assets	69	352
Interest Rate Swaps, Liabilities	1,061
Recurring
Balances of the assets and liabilities measured at fair value on a recurring basis
Interest Rate Swaps, Assets	69	352
Total Fair Value of Financial Assets	263,872	253,730
Interest Rate Swaps, Liabilities	1,061
Total Fair Value of Financial Liabilities	1,061
U.S. Treasury Securities
Balances of the assets and liabilities measured at fair value on a recurring basis
Securities Available for Sale, at Fair Value	9,986	17,897
U.S. Treasury Securities | Recurring
Balances of the assets and liabilities measured at fair value on a recurring basis
Securities Available for Sale, at Fair Value	9,986	17,897
Municipal Bonds
Balances of the assets and liabilities measured at fair value on a recurring basis
Securities Available for Sale, at Fair Value	105,565	118,133
Municipal Bonds | Recurring
Balances of the assets and liabilities measured at fair value on a recurring basis
Securities Available for Sale, at Fair Value	105,565	118,133
Mortgage-Backed Securities
Balances of the assets and liabilities measured at fair value on a recurring basis
Securities Available for Sale, at Fair Value	56,719	47,176
Mortgage-Backed Securities | Recurring
Balances of the assets and liabilities measured at fair value on a recurring basis
Securities Available for Sale, at Fair Value	56,719	47,176
Corporate Securities
Balances of the assets and liabilities measured at fair value on a recurring basis
Securities Available for Sale, at Fair Value	40,155	21,118
Corporate Securities | Recurring
Balances of the assets and liabilities measured at fair value on a recurring basis
Securities Available for Sale, at Fair Value	40,155	21,118
SBA Securities
Balances of the assets and liabilities measured at fair value on a recurring basis
Securities Available for Sale, at Fair Value	48,367	49,054
SBA Securities | Recurring
Balances of the assets and liabilities measured at fair value on a recurring basis
Securities Available for Sale, at Fair Value	48,367	49,054
Asset-Backed Securities
Balances of the assets and liabilities measured at fair value on a recurring basis
Securities Available for Sale, at Fair Value	3,011
Asset-Backed Securities | Recurring
Balances of the assets and liabilities measured at fair value on a recurring basis
Securities Available for Sale, at Fair Value	3,011
Level 1
Balances of the assets and liabilities measured at fair value on a recurring basis
Securities Available for Sale, at Fair Value	9,986	17,897
Level 1 | Recurring
Balances of the assets and liabilities measured at fair value on a recurring basis
Total Fair Value of Financial Assets	9,986	17,897
Level 1 | U.S. Treasury Securities | Recurring
Balances of the assets and liabilities measured at fair value on a recurring basis
Securities Available for Sale, at Fair Value	9,986	17,897
Level 2
Balances of the assets and liabilities measured at fair value on a recurring basis
Securities Available for Sale, at Fair Value	253,817	235,481
Interest Rate Swaps, Assets	69	352
Interest Rate Swaps, Liabilities	1,061
Level 2 | Recurring
Balances of the assets and liabilities measured at fair value on a recurring basis
Interest Rate Swaps, Assets	69	352
Total Fair Value of Financial Assets	253,886	235,833
Interest Rate Swaps, Liabilities	1,061
Total Fair Value of Financial Liabilities	1,061
Level 2 | Municipal Bonds | Recurring
Balances of the assets and liabilities measured at fair value on a recurring basis
Securities Available for Sale, at Fair Value	105,565	118,133
Level 2 | Mortgage-Backed Securities | Recurring
Balances of the assets and liabilities measured at fair value on a recurring basis
Securities Available for Sale, at Fair Value	56,719	47,176
Level 2 | Corporate Securities | Recurring
Balances of the assets and liabilities measured at fair value on a recurring basis
Securities Available for Sale, at Fair Value	40,155	21,118
Level 2 | SBA Securities | Recurring
Balances of the assets and liabilities measured at fair value on a recurring basis
Securities Available for Sale, at Fair Value	48,367	$ 49,054
Level 2 | Asset-Backed Securities | Recurring
Balances of the assets and liabilities measured at fair value on a recurring basis
Securities Available for Sale, at Fair Value	$ 3,011

Fair Value Measurement - Nonrec

Fair Value Measurement - Nonrecurring (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Balances of the assets and liabilities measured at fair value on a nonrecurring basis
Loss	$ 900	$ 1,275	$ 2,100	$ 2,775
Nonrecurring
Balances of the assets and liabilities measured at fair value on a nonrecurring basis
Loss			182		$ 396
Nonrecurring | Impaired Loans
Balances of the assets and liabilities measured at fair value on a nonrecurring basis
Loss			182		396
Level 2 | Nonrecurring
Balances of the assets and liabilities measured at fair value on a nonrecurring basis
Assets measured at fair value	448		448		426
Level 2 | Nonrecurring | Impaired Loans
Balances of the assets and liabilities measured at fair value on a nonrecurring basis
Assets measured at fair value	$ 448		$ 448		$ 426

Fair Value Measurement - Estima

Fair Value Measurement - Estimated Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Financial Assets:
Cash and Due From Banks	$ 89,619	$ 28,444
Bank-Owned Certificates of Deposit	2,654	3,305
Securities Available for Sale, at Fair Value	263,803	253,378
FHLB Stock, at Cost	8,024	7,614
Loans, Net	1,818,306	1,640,385
Accrued Interest Receivable	6,519	6,589
Interest Rate Swaps	69	352
Financial Liabilities:
Deposits	1,802,236	1,560,934
Federal Funds Purchased		18,000
Notes Payable	13,500	15,000
FHLB Advances	141,500	124,000
Subordinated Debentures	24,707	24,630
Accrued Interest Payable	1,763	1,806
Interest Rate Swaps	1,061
Level 1
Financial Assets:
Cash and Due From Banks	89,619	28,444
Securities Available for Sale, at Fair Value	9,986	17,897
Level 2
Financial Assets:
Bank-Owned Certificates of Deposit	2,682	3,292
Securities Available for Sale, at Fair Value	253,817	235,481
FHLB Stock, at Cost	8,024	7,614
Loans, Net	1,820,514	1,634,196
Accrued Interest Receivable	6,519	6,589
Interest Rate Swaps	69	352
Financial Liabilities:
Deposits	1,810,361	1,560,488
Federal Funds Purchased		18,000
Notes Payable	13,461	15,551
FHLB Advances	146,616	124,952
Subordinated Debentures	25,466	25,365
Accrued Interest Payable	1,763	1,806
Interest Rate Swaps	1,061
Estimated Fair Value
Financial Assets:
Cash and Due From Banks	89,619	28,444
Bank-Owned Certificates of Deposit	2,682	3,292
Securities Available for Sale, at Fair Value	263,803	253,378
FHLB Stock, at Cost	8,024	7,614
Loans, Net	1,820,514	1,634,196
Accrued Interest Receivable	6,519	6,589
Interest Rate Swaps	69	352
Financial Liabilities:
Deposits	1,810,361	1,560,488
Federal Funds Purchased		18,000
Notes Payable	13,461	15,551
FHLB Advances	146,616	124,952
Subordinated Debentures	25,466	25,365
Accrued Interest Payable	1,763	$ 1,806
Interest Rate Swaps	$ 1,061