Level One Bancorp (FRMEP) 10-K 11 Mar 22 2021 FY Annual report Financial data

Cover

Cover - USD ($)	12 Months Ended
	Dec. 31, 2021	Mar. 04, 2022	Jun. 30, 2021
Entity Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2021
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-38458
Entity Registrant Name	LEVEL ONE BANCORP, INC.
Entity Incorporation, State or Country Code	MI
Entity Address, Address Line One	32991 Hamilton Court
Entity Address, City or Town	Farmington Hills,
Entity Address, State or Province	MI
Entity Tax Identification Number	71-1015624
Entity Address, Postal Zip Code	48334
City Area Code	248
Local Phone Number	737-0300
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
ICFR Auditor Attestation Flag	false
Entity Shell Company	false
Entity Public Float			$ 133,747,532
Entity Common Stock, Shares Outstanding		7,787,601
Entity Central Index Key	0001412707
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY
Amendment Flag	false
Documents Incorporated by Reference	Portions of the Proxy Statement for the 2022 Annual Meeting of Shareholders are incorporated by reference into Part III of this Form 10-K to the extent indicated in such Part.
Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	LEVL
Security Exchange Name	NASDAQ
Depositary Shares, each representing a 1/100th interest in a share of 7.50% Non-Cumulative Perpetual Preferred Stock, Series B
Entity Information [Line Items]
Title of 12(b) Security	Depositary Shares, each representing a 1/100th interest in a share of 7.50% Non-Cumulative Perpetual Preferred Stock, Series B
Trading Symbol	LEVLP
Security Exchange Name	NASDAQ

Audit Information

Audit Information	12 Months Ended
	Dec. 31, 2021
Audit Information [Abstract]
Auditor Name	Plante & Moran, PLLC
Auditor Location	Auburn Hills, Michigan
Auditor Firm ID	166

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Assets
Cash and cash equivalents	$ 330,146	$ 264,071
Securities available-for-sale	397,551	302,732
Other investments	14,398	14,398
Mortgage loans held for sale, at fair value	12,902	43,482
Loans:
Total loans	1,652,771	1,723,537
Less: Allowance for loan losses	(21,425)	(22,297)
Net loans	1,631,346	1,701,240
Premises and equipment, net	14,903	15,834
Goodwill	35,554	35,554
Mortgage servicing rights, net	5,604	3,361
Core deposit intangibles, net	2,528	3,196
Other real estate owned	201	0
Bank-owned life insurance	29,960	18,200
Income tax benefit	4,829	3,686
Interest receivable and other assets	35,947	37,228
Total assets	2,515,869	2,442,982
Deposits:
Noninterest-bearing demand deposits	796,782	618,677
Interest-bearing demand deposits	240,781	127,920
Money market and savings deposits	576,718	619,900
Time deposits	425,801	596,815
Total deposits	2,040,082	1,963,312
Borrowings	178,682	185,684
Subordinated notes	29,694	44,592
Other liabilities	27,320	34,067
Total liabilities	2,275,778	2,227,655
Shareholders' equity
Preferred stock, no par value per share; authorized—50,000 shares; issued and outstanding—10,000 shares, with a liquidation preference of $2,500 per share, at December 31, 2021 and 2020	23,372	23,372
Common stock, no par value per share; authorized—20,000,000 shares; issued and outstanding—7,733,726 shares at December 31, 2021 and 7,633,780 shares at December 31, 2020	88,851	87,615
Retained earnings	124,923	96,158
Accumulated other comprehensive income, net of tax	2,945	8,182
Total shareholders' equity	240,091	215,327
Total liabilities and shareholders' equity	2,515,869	2,442,982
Originated loans
Loans:
Total loans	1,486,969	1,498,458
Acquired loans
Loans:
Total loans	$ 165,802	$ 225,079

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock, shares authorized (in shares)	50,000	50,000
Preferred stock, shares issued (in shares)	10,000	10,000
Preferred stock, shares outstanding (in shares)	10,000	10,000
Preferred stock, liquidation preference (in dollars per share)	$ 2,500	$ 2,500
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	7,733,726	7,633,780
Common stock, shares outstanding (in shares)	7,733,726	7,633,780

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Securities:
Taxable	$ 4,036	$ 2,677	$ 3,509
Tax-exempt	2,510	2,486	2,305
Federal funds sold and other investments	740	986	1,303
Total interest income	86,650	82,639	70,448
Interest Expense
Deposits	4,313	10,993	16,941
Borrowed funds	1,875	2,353	1,378
Subordinated notes	1,863	2,537	1,074
Total interest expense	8,051	15,883	19,393
Net interest income	78,599	66,756	51,055
Provision for (recovery of) loan losses	(725)	11,872	1,383
Net interest income after provision for loan losses	79,324	54,884	49,672
Noninterest income
Service charges on deposits	3,311	2,446	2,547
Net gain on sales of securities	21	1,862	1,174
Mortgage banking activities	15,843	22,190	7,880
Other charges and fees	3,197	3,216	2,610
Total noninterest income	22,372	29,714	14,211
Noninterest expense
Salary and employee benefits	39,353	38,304	28,775
Occupancy and equipment expense	6,631	6,549	4,939
Professional service fees	3,542	2,935	1,808
Acquisition and due diligence fees	0	1,654	539
FDIC premium expense	1,027	1,119	310
Marketing expense	1,288	956	1,107
Loan processing expense	983	935	661
Data processing expense	4,125	3,460	2,374
Core deposit premium amortization	668	768	146
Other expense	4,222	3,552	3,710
Noninterest expense	61,839	60,232	44,369
Income before income taxes	39,857	24,366	19,514
Income tax provision	7,379	3,953	3,403
Net income	32,478	20,413	16,111
Preferred stock dividends	1,875	479	0
Net income available to common shareholders	$ 30,603	$ 19,934	$ 16,111
Per common share data:
Basic earnings per common share (in dollars per share)	$ 4	$ 2.58	$ 2.08
Diluted earnings per common share (in dollars per share)	3.95	2.57	2.05
Cash dividends declared per common share (in dollars per share)	$ 0.24	$ 0.20	$ 0.16
Weighted average common shares outstanding—basic (in shares)	7,536	7,627	7,655
Weighted average common shares outstanding - diluted (in shares)	7,650	7,686	7,770
Originated
Interest income
Loans, including fees	$ 68,555	$ 62,069	$ 56,956
Acquired
Interest income
Loans, including fees	$ 10,809	$ 14,421	$ 6,375

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - (UNAUDITED) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income		$ 32,478	$ 20,413	$ 16,111
Other comprehensive income:
Unrealized gains (losses) on securities available-for-sale		(6,608)	7,673	7,939
Reclassification adjustment for gains included in income		(21)	(1,862)	(1,174)
Tax effect	[1]	1,392	(1,221)	(1,421)
Net unrealized gains (losses) on securities available-for-sale, net of tax		(5,237)	4,590	5,344
Total comprehensive income, net of tax		$ 27,241	$ 25,003	$ 21,455
[1]	Includes $4 thousand, $391 thousand and $247 thousand of tax expense related to the reclassification adjustment for gains included in income for the years ended December 31, 2021, 2020, and 2019, respectively.

CONSOLIDATED STATEMENTS OF CO_2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - (UNAUDITED) - (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Tax expense (benefit) related to reclassification	$ 4	$ 391	$ 247

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - (UNAUDITED) - USD ($) $ in Thousands		Total	Preferred Stock	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income
Beginning balance at Dec. 31, 2018		$ 151,760	$ 0	$ 90,621	$ 62,891	$ (1,752)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		16,111			16,111
Other comprehensive income		5,344				5,344
Redeemed stock		(2,165)		(2,165)
Common stock dividends declared		(1,236)			(1,236)
Exercise of stock options		219		219
Stock-based compensation expense, net of tax impact		670		670
Ending balance at Dec. 31, 2019		170,703	0	89,345	77,766	3,592
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		20,413			20,413
Other comprehensive income		4,590				4,590
Redeemed stock		(2,648)		(2,648)
Preferred stock offering, net of issuance costs		23,372	23,372
Dividends on 7.50% Series B Preferred Stock		(479)			(479)
Common stock dividends declared		(1,542)			(1,542)
Exercise of stock options		95		95
Stock-based compensation expense, net of tax impact	[1]	823		823
Ending balance at Dec. 31, 2020		215,327	23,372	87,615	96,158	8,182
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		32,478			32,478
Other comprehensive income		(5,237)				(5,237)
Redeemed stock		(1,364)		(1,364)
Dividends on 7.50% Series B Preferred Stock		(1,875)			(1,875)
Common stock dividends declared		(1,838)			(1,838)
Exercise of stock options		1,920		1,920
Stock-based compensation expense, net of tax impact	[1]	680		680
Ending balance at Dec. 31, 2021		$ 240,091	$ 23,372	$ 88,851	$ 124,923	$ 2,945
[1]	Refer to "Note 12 - Stock based compensation" of Notes to Consolidated Financial Statements for a summary of our stock compensation activity and its effects on outstanding shares for the years ended December 31, 2021 and 2020.

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - (UNAUDITED) (Parenthetical) - $ / shares	3 Months Ended								12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Stockholders' Equity [Abstract]
Redeemed stock (in shares)									59,645	125,798	90,816
Preferred stock, interest rate									7.50%	7.50%
Cash dividend declared (in dollars per share)	$ 0.06	$ 0.06	$ 0.06	$ 0.06	$ 0.05	$ 0.05	$ 0.05	$ 0.05	$ 0.24	$ 0.20	$ 0.16
Exercise of stock options (in shares)									118,482	10,000	21,550

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - (UNAUDITED) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities
Net income	$ 32,478	$ 20,413	$ 16,111
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of fixed assets	1,602	1,694	1,323
Amortization of core deposit intangibles	668	768	146
Stock-based compensation expense	817	887	713
Provision for (recovery of) loan losses	(725)	11,872	1,383
Net securities premium amortization	3,039	2,149	1,735
Net gain on sales of securities	(21)	(1,862)	(1,174)
Originations of loans held for sale	(443,115)	(557,078)	(272,714)
Proceeds from sales of loans	482,028	545,581	270,363
Net gain on sales of loans	(16,057)	(22,191)	(7,835)
Accretion on acquired purchase credit impaired loans	(1,454)	(1,760)	(2,313)
Gain on sale of other real estate owned and repossessed assets	0	(316)	0
Increase in cash surrender value of life insurance	(660)	(470)	(301)
Amortization of debt issuance costs	102	152	62
Provision (benefit) for deferred income taxes	1,414	(3,315)	(592)
Net change in accrued interest receivable and other assets	1,909	(10,751)	(8,934)
Net change in accrued interest payable and other liabilities	(7,717)	3,441	6,151
Net cash provided by (used in) operating activities	54,308	(10,786)	4,124
Cash flows from investing activities
Net change in loans	76,448	(271,648)	(97,660)
Principal payments on securities available-for-sale	29,780	23,342	15,511
Purchases of securities available-for-sale	(135,903)	(140,078)	(56,810)
Purchases of Bank Owned Life Insurance	(11,100)	0	0
Purchases of other investments	0	(2,000)	(3,150)
Additions to premises and equipment	(671)	(1,289)	(2,019)
Proceeds from:
Sale and call of securities available-for-sale	1,657	47,849	70,856
Sale of other real estate owned and repossessed assets	0	4,164	0
Net cash used in acquisition	0	(29,464)	0
Net cash used in investing activities	(39,789)	(369,124)	(73,272)
Cash flows from financing activities
Net change in deposits	76,770	563,064	793
Change in short-term borrowings	(862)	(62,647)	(32,278)
Issuances of long-term borrowings	0	291,334	145,000
Repayment of long-term borrowings	(6,090)	(270,437)	0
Net proceeds from issuance of subordinated debt	0	0	29,487
Preferred stock offering, net of issuance costs	0	23,372	0
Pay down of subordinated debt	(15,000)	0	0
Change in secured borrowing	(50)	(70)	(71)
Share buyback - redeemed stock	(1,364)	(2,648)	(2,165)
Preferred stock dividends paid	(1,875)	(479)	0
Common stock dividends paid	(1,756)	(1,469)	(1,160)
Proceeds from exercised stock options	1,920	95	219
Payments related to tax-withholding for share based compensation awards	(137)	(64)	(43)
Net cash provided by (used in) financing activities	51,556	540,051	139,782
Net change in cash and cash equivalents	66,075	160,141	70,634
Beginning cash and cash equivalents	264,071	103,930	33,296
Ending cash and cash equivalents	330,146	264,071	103,930
Supplemental disclosure of cash flow information:
Interest paid	8,366	16,376	19,493
Taxes paid	7,654	8,599	2,916
Transfer from loans held for sale to loans held for investment and repurchases	5,038	5,217	2,186
Transfer from loans to other real estate owned	201	2,927	921
Increase in assets and liabilities in acquisitions:
Assets acquired—Ann Arbor State Bank	0	325,303	0
Liabilities assumed—Ann Arbor State Bank	$ 0	$ 283,526	$ 0

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Nature of Operations: Level One Bancorp, Inc. (the “Company,” “Level One,” “we,” “our,” or “us”) is a financial holding company headquartered in Farmington Hills, Michigan. Including the Company headquarters, as of December 31, 2021, its wholly owned bank subsidiary, Level One Bank (the "Bank"), had 17 offices, including 11 banking centers (our full service branches) in Metro Detroit, one banking center in Grand Rapids, one banking center in Jackson, three banking centers in Ann Arbor and one mortgage loan production office in Ann Arbor. The Bank is a Michigan banking corporation with depository accounts insured by the Deposit Insurance Fund of the Federal Deposit Insurance Corporation (the "FDIC"). The Bank provides a wide range of business and consumer financial services in southeastern Michigan and west Michigan. Its primary deposit products are checking, interest-bearing demand, money market and savings, and term certificate accounts, and its primary lending products are commercial real estate, commercial and industrial, residential real estate, and consumer loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. Other financial instruments, which potentially represent concentrations of credit risk, include federal funds sold. Hamilton Court Insurance Company ("Hamilton Court"), was a wholly owned insurance subsidiary of the Company that provided property and casualty insurance coverage to the Company and the Bank and reinsurance to ten other third party insurance captives for which insurance may not have been available or economically feasible in the insurance marketplace. Hamilton Court was designed to insure the risks of the Company and the Bank by providing additional insurance coverage for deductibles, excess limits and uninsured exposures. Hamilton Court was incorporated in Nevada. Hamilton Court Insurance Company exited the pool resources relationship to which it was previously a member and was dissolved in the first quarter of 2021. Preferred Stock Public Offering: On August 10, 2020, the Company sold 1,000,000 depositary shares, each representing 1/100th interest in a share of 7.50% Non-Cumulative Perpetual Preferred Stock, Series B, with a liquidation preference of $2,500 per share of Preferred Stock (equivalent to $25 per depositary share). The aggregate offering price for the shares sold by the Company was $25.0 million, and after deducting $1.6 million of underwriting discounts and offering expenses paid to third parties, the Company received total net proceeds of $23.4 million. Merger with Ann Arbor Bancorp, Inc.: On January 2, 2020, the Company completed its acquisition of Ann Arbor Bancorp, Inc. (“AAB”) and its wholly owned subsidiary, Ann Arbor State Bank. The Company paid aggregate consideration of approximately $67.9 million in cash. See "Note 2 - Business Combinations" for more information. Merger with First Merchants Corporation: On November 4, 2021, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with First Merchants Corporation., an Indiana corporation (“First Merchants”). The Merger Agreement provides that, upon the terms and subject to the conditions set forth therein, we will merge with and into First Merchants (the “Merger”), with First Merchants as the surviving corporation in the Merger. Immediately following the Merger, the Bank will consolidate with and into First Merchant’s’ wholly owned bank subsidiary, First Merchants Bank, with First Merchants Bank as the surviving entity. Upon the terms and subject to the conditions set forth in the Merger Agreement, at the effective time of the Merger, each share of our common stock outstanding immediately prior to the effective time of the Merger will be converted into the right to receive (i) 0.7167 shares of First Merchants common stock and (ii) $10.17 in cash. Each share of our 7.50% Non-Cumulative Perpetual Preferred Stock, Series B (“Level One Preferred Stock”) outstanding immediately prior to the effective time of the Merger will be converted into the right to receive a share of a newly created series of preferred stock of First Merchants having voting powers, preferences and special rights that are substantially identical to the Level One Preferred Stock (“First Merchants Preferred Stock”). Each depositary share issued pursuant to the Deposit Agreement, dated as of August 13, 2020, among Level One, Continental Stock Transfer & Trust Company, as depositary, and the holders from time to time of the depositary receipts described therein, representing one-hundredth of one share of the Level One Preferred Stock, shall thereupon represent one-hundredth of one share of the First Merchants Preferred Stock. Basis of Presentation: The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and conform to predominant practices within the banking industry. Management of the Company has made a number of estimates and assumptions related to the reporting of assets and liabilities to prepare the consolidated financial statements in conformity with GAAP. Actual results may differ from those estimates. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of the results of operations for annual periods presented herein, have been included. Some items in the prior year financial statements were reclassified to conform to the current presentation. Such items had no impact on net income or shareholder’s equity. Principles of Consolidation: The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, the Bank and Hamilton Court, after elimination of significant intercompany transactions and accounts. Business Combinations The Company accounts for business combinations under the acquisition method of accounting. Under the acquisition method, tangible and intangible identifiable assets acquired, liabilities assumed and any noncontrolling interests in the acquiree are recorded at fair value as of the acquisition date. The Company includes the results of operations of the acquired companies in the consolidated statements of income from the date of acquisition. Transaction costs and costs to restructure the acquired company are expensed as incurred. Goodwill is recognized as the excess of the acquisition price over the estimated fair value of the net assets acquired. If the fair value of the net assets acquired is greater than the acquisition price, a bargain purchase gain is recognized and recorded in noninterest income. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, which includes amounts on deposit with the Federal Reserve, interest-bearing deposits with banks or other financial institutions and federal funds sold. Generally, federal funds are sold for one‑day periods, but not longer than 30 days. Investment Securities Investment securities consist of debt securities of the U.S. Treasury, government sponsored entities, states, counties, municipalities, corporations, agency mortgage-backed securities and non-agency mortgage-backed securities. Securities transactions are recorded on a trade date basis. Securities are classified as available for sale when the Company intends to sell them before maturity. Available-for-sale securities are recorded at fair value. Unrealized gains and losses, net of the related tax effect, on available-for-sale securities are included in other comprehensive income and the related accumulated unrealized holding gains and losses are reported as a separate component of shareholders’ equity until realized. On a quarterly basis, the Company makes an assessment to determine whether there have been any events or circumstances to indicate that a security for which there is an unrealized loss is impaired on an other than temporary basis. This determination requires significant judgment. A decline in the fair value of any available-for-sale security below cost that is deemed other than temporary results in a charge to earnings and the establishment of a new cost basis for the security. In estimating other-than-temporary impairment (“OTTI”) losses, we consider the severity and duration of the impairment; the financial condition and near-term prospects of the issuer, which for debt securities considers external credit ratings and recent downgrades; projected cash flows on covered non-agency mortgage-backed securities; and the intent and ability of the Company to hold the security for a period of time sufficient for a recovery in value. Management evaluates securities for other-than-temporary impairment more frequently when economic or market conditions warrant such an evaluation. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are amortized on the level-yield method. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Also, when applicable, realized gains and losses are reported as a reclassification adjustment, net of tax, in other comprehensive income. Other Investments The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. The Bank also invests in an equity security that does not have a readily determinable fair value because its ownership is restricted and lacks a market for trading. As a result, this security is carried at cost and is periodically evaluated for impairment. Loans Held for Sale Loans held for sale consist of loans originated with the intent to sell. Loans held for sale are carried at fair value, determined individually, as of the balance sheet date. The Company believes the fair value method reflects the economic risks associated with these loans. Fair value measurements on loans held for sale are based on quoted market prices for similar loans in the secondary market, market quotes from anticipated sales contracts and commitments, or contract prices from firm sales commitments. Fair value includes the servicing value of the loans as well as any accrued interest. The changes in the fair value of loans held for sale are reflected in mortgage banking activities on the consolidated statements of income . Loans held for sale are sold with either servicing rights released or servicing rights retained. In addition to the Small Business Administration and United States Department of Agriculture guaranteed loans, which are sold with servicing retained, the Company starting selling loans held for sale with servicing retained directly to FNMA during the third quarter of 2019. Refer to the mortgage servicing rights section below for further discussion. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unamortized deferred loan fees and costs and net of any purchase premiums and discounts. Interest income is recorded on the accrual basis, in accordance with the terms of the respective loan. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income without anticipating prepayments. Loans are considered delinquent when principal or interest payments are past due 30 days or more; delinquent loans may remain on accrual status between 30 days and 89 days past due. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. Interest income on mortgage and commercial loans is discontinued when principal or interest payments are past due 90 days, unless the loan is well-secured and in process of collection. Consumer loans are typically charged off no later than 120 days past due. When loans are placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Interest received on such loans is accounted for on the cash-basis or cost recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Certain Purchased Loans The Company purchases individual loans and groups of loans, some of which have shown evidence of credit deterioration since origination. These purchased credit impaired (“PCI”) loans are recorded at the amount paid or at fair value at acquisition in a business combination, such that there is no carryover of the seller’s allowance for loan losses. After acquisition, losses are recognized by an increase in the provision for loan losses. These PCI loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as credit grade, loan type, and date of origination. The Company estimates the amount and timing of expected cash flows for each purchased loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool ( accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, an impairment loss is recognized by establishing an allocation for the loan or pool in the allowance for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized, prospectively, as loan interest income. Allowance for Loan Losses The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Loans over $250 thousand are individually evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings, are classified as impaired, regardless of size, and are measured for impairment based upon the present value of estimated future cash flows using the loan’s effective rate at inception or, if considered collateral dependent, based upon the fair value of the collateral. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. An allowance for loan losses for purchased credit impaired loans is recorded when projected future cash flows decrease. The measurement of impairment on these loans or pools of loans is based upon the excess of the loan or pool’s carrying value over the present value of the projected future cash flows, discounted at the last accounting yield applicable to the loan or pool of loans. The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent 36 months. The historical loss analysis incorporates and fully relies on the Bank’s own historical loss data. The historical loss estimates are established by loan type including commercial and industrial and commercial real estate. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: local and national economic conditions; trends in underwriting standards and lending policies; trends in portfolio volume, maturity and composition (impact of credit concentrations); experience, ability and depth of lending management and staff; trends in delinquencies and nonaccruals; results of independent loan review; change in value for collateral dependent loans; high loan growth; unseasoned bank portfolio; specialized financing; and other factors (legal, regulatory, competition). The following portfolio segments have been identified: Commercial real estate loans are secured by a mortgage lien on the real estate property. Owner-occupied real estate loans generally are considered to carry less risk than non-owner occupied real estate (properties) because the Company considers them to be less sensitive to the condition of the commercial real estate market. Repayment is based on the operations of the business. Investment real estate loans rely on rental income for loan repayment, which involves risk such as rent rollover, tenants going out of business, and competitive properties in the area. Construction and land development loans generally are considered the riskiest class of commercial real estate, due to possible cost overruns, contractor/lien issues, loss of tenant, etc. Risk of loss is managed by adherence to standard loan policies that establish certain levels of performance prior to the extension of a loan to the borrower. Commercial and Industrial loans have varying degrees of risk, but overall are considered to have less risk than commercial real estate. These loans are generally short-term in nature and are almost always backed by collateral. Unsecured commercial loans are supported by strong borrower(s)/guarantor(s) in terms of liquidity, net worth, cash flow, etc. Collateral security of these loans is relatively liquid (i.e., accounts receivable, inventory, equipment) and readily available to cover potential loan loss. Credit risk is managed through standardized loan policies, established and authorized credit limits, portfolio management and the diversification of industries. The PPP loans funded during the second and third quarters of 2020, which are guaranteed by the SBA, are reported within this loan category. Consumer and Residential Real Estate loan portfolios, unlike commercial, tend to be composed of many relatively homogeneous loans. Loan repayment is based on personal cash flow. To assess the risk of a consumer loan request, loan purpose, collateral, debt to income ratio, credit bureau report, and cash flow/employment verification are analyzed. A certain level of security is provided through liens on credits supported by collateral. Economic conditions that affect consumers in the Bank’s market have a direct impact on the credit quality of these loans. Higher levels of unemployment, lower levels of income growth and weaker economic growth are factors that may adversely impact consumer loan credit quality. The majority of residential real estate loans originated by the Bank conform to secondary market underwriting standards and are sold within a short timeframe to unaffiliated third parties, including the future servicing rights to the loans. The credit underwriting standards for these loans require a certain level of documentation, verifications, valuations, and overall credit performance of the borrower. Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the life of the asset or the expected term of the lease. We periodically review the carrying value of our long‑lived assets to determine if impairment has occurred or whether changes in circumstances have occurred that would require a revision to the remaining useful life. In making such determination, we evaluate the performance, on an undiscounted basis, of the underlying operations or assets which give rise to such amount. Other Real Estate Owned ("OREO") and Repossessed Assets Other real estate owned and repossessed assets represent properties/assets acquired through acquisition, foreclosure, repossession process or other proceedings, and are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Fair value for OREO is based on an appraisal performed upon foreclosure. Property is evaluated regularly to ensure the recorded amount is supported by its fair value less estimated costs to dispose. After the initial foreclosure appraisal, fair value is generally determined by an annual appraisal unless known events warrant adjustments to the recorded value. Revenue from the operations of OREO is included in other income in the consolidated statements of income, and expense from the operations of OREO and decreases in valuations are included in other expense in the consolidated statements of income. Goodwill and Core Deposit Intangible Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. Core deposit intangible represents the value of the acquired customer core deposit bases and is included as an asset on the consolidated balance sheets. The core deposit intangible has an estimated finite life, is amortized on an accelerated basis over a 120-month period and is subject to periodic impairment evaluation. Management will periodically review the carrying value of its long-lived and intangible assets to determine if any impairment has occurred or whether changes in circumstances have occurred that would require a revision to the remaining useful life, in which case an impairment charge would be recorded as an expense in the period of impairment. In making such determination, management evaluates whether there are any adverse qualitative factors indicating that an impairment may exist, as well as the performance, on an undiscounted basis, of the underlying operations or assets which give rise to the intangible. Mortgage Servicing Rights When loans are sold with servicing retained, the servicing rights are carried at the lower of the initial capitalized amount, net of accumulated amortization, or estimated fair value. The servicing rights are amortized in proportion to and over the period of estimated net servicing income. Servicing rights are evaluated for impairment on a quarterly basis based upon the fair value obtained from an independent third party valuation model requiring the incorporation of assumptions that market participants would use in estimating future net servicing income, which include estimates of prepayment speeds, discount rate, cost to service, contractual servicing fee income, ancillary income, late fees, replacement reserves and other economic factors that are determined based on current market conditions. Servicing fee income on residential mortgages totaled $1.2 million and $331 thousand for the years ended December 31, 2021 and 2020, respectively. Bank-owned Life Insurance The Bank has purchased life insurance policies on certain key executives and senior managers. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Derivatives All derivatives are recognized on the consolidated balance sheet as a component of other assets or other liabilities at their fair value. Customer-initiated derivatives refer to the Company utilizing interest rate derivatives to provide a service to certain qualifying customers to help facilitate their respective risk management strategies. Therefore, these derivatives are not used to manage interest rate risk in the Company's assets or liabilities. The Company generally takes offsetting positions with dealer counterparties to mitigate the valuation risk of the customer-initiated derivatives. Income primarily results in the spread between the customer derivatives and offsetting dealer positions. The gains or losses derived from changes in fair value are recognized in current earnings during the period of change in other non-interest income on the consolidated statements of income. At December 31, 2021, the total notional amount of such agreements was $148.9 million and resulted in a derivative asset with a fair value of $5.4 million which was included in other assets and a derivative liability of $5.4 million which was included in other liabilities. Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as freestanding derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. The Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these derivatives are included in mortgage banking activities in the consolidated statements of income. Secured borrowing Transfers of financial assets that do not qualify for sale accounting are reported as collateralized borrowings. Accordingly, the related assets remain on the Company’s balance sheet and continue to be reported and accounted for as if the transfer had not occurred. Cash proceeds from these transfers are reported as liabilities, with attributable interest expense recognized over the life of the related transactions. Loan Commitments and Related Financial Instruments Financial instruments include off‑balance sheet credit instruments, such as commitments to make loans and standby letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are any matters at this time that will have a material effect on the consolidated financial statements. Earnings per Share The Company's restricted stock awards that pay non-forfeitable common stock dividends meet the criteria of a participating security. Accordingly, beginning in 2019, earnings per share is calculated using the two-class method under which earnings are allocated to both common shares and participating securities. Debt Issuance Costs Costs associated with the issuance of debt are presented in the consolidated balance sheet as a direct reduction from the carrying value of that debt liability. The deferred issuance costs are amortized over the life the related debt instrument, and included within the debt’s interest expense. Stock-Based Compensation Compensation cost is recognized for stock options and restricted stock awards issued to employees, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards as there is no market or performance metrics that must be met. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Additionally, the Company accounts for forfeitures as they occur. Comprehensive Income Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale, net of taxes and reclassifications. Income Taxes Income tax expense or benefit is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the tran

Business Combinations

Business Combinations	12 Months Ended
	Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]
Business Combinations	BUSINESS COMBINATIONS On January 2, 2020, the Company completed its previously announced acquisition of Ann Arbor Bancorp, Inc. and its wholly owned subsidiary, Ann Arbor State Bank. The Company paid an aggregate consideration of approximately $67.9 million in cash. The Company engaged in this transaction with the expectation that it would be accretive to income and expand our footprint in the Ann Arbor and Jackson markets. AAB's results of operations were included in the Company’s results beginning January 2, 2020. Acquisition-related costs of $1.7 million are included in the Company’s income statement for the year ended December 31, 2020. Goodwill of $26.2 million arising from the acquisition consisted largely of synergies and the cost savings resulting from the combining of the operations of the companies. The goodwill arising from the acquisition of AAB is not deductible for tax purposes. The following table summarizes the amounts of assets acquired and liabilities assumed recognized at the acquisition date. (Dollars in thousands) Consideration paid: Cash $ 67,944 Fair value of assets acquired: Cash and cash equivalents 38,480 Investment securities 47,416 Federal Home Loan Bank stock 923 Loans held for sale 1,703 Loans held for investment 222,356 Premises and equipment 2,404 Core deposit intangibles 3,663 Other assets 8,358 Total assets acquired 325,303 Fair value of liabilities assumed: Deposits 264,820 Federal Home Loan Bank advances 15,279 Other liabilities 3,427 Total liabilities assumed 283,526 Total identifiable net assets 41,777 Goodwill recognized in the acquisition $ 26,167 Core deposit intangibles of $3.7 million arising from the acquisition is being amortized over 10 years on an accelerated basis using the sum of the years digits method. Loans acquired in the acquisition were initially recorded at fair value with no separate allowance for loan losses. The Company reviewed the loans at acquisition to determine which should be considered purchased credit impaired loans (i.e. loans accounted for under ASC 310-30), defining impaired loans as those that were either not accruing interest or exhibited credit risk factors consistent with nonaccrual loans at the acquisition date. Fair values for purchased loans are based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of the loan and whether or not the loan was amortizing, and a discount rate reflecting the Company's assessment of risk inherent in the cash flow estimates. The Company accounts for purchased credit impaired loans in accordance with the provisions of ASC 310-30. The cash flows expected to be collected on purchased loans are estimated based upon the expected remaining life of the underlying loans, which includes the effects of estimated prepayments. Purchased loans are considered credit impaired if there is evidence of credit deterioration at the date of purchase and if it is probable that not all contractually required payments will be collected. Interest income, through accretion of the difference between the carrying value of the loans and the expected cash flows is recognized on the acquired loans accounted for under ASC 310-30. Purchased loans outside the scope of ASC 310-30 are accounted for under ASC 310-20. Premiums and discounts created when the loans were recorded at their fair values at acquisition are amortized over the remaining terms of the loans as an adjustment to the related loan's yield. (Dollars in thousands) Accounted for under ASC 310-30: Contractual cash flows $ 1,018 Contractual cash flows not expected to be collected (nonaccretable difference) 82 Expected cash flows 936 Interest component of expected cash flows (accretable yield) 35 Fair value at acquisition 901 Accounted for under ASC 310-20: Unpaid principal and interest balance 221,061 Fair value premium 394 Fair value at acquisition 221,455 Total fair value at acquisition $ 222,356 The pro forma table below presents information as if the acquisition had occurred on January 1, 2019. The pro forma information includes adjustments to give the effects to any changes in interest income due to the accretion (amortization) of the discount (premium) associated with the fair value adjustments to acquired loans, any changes in interest expense due to estimated premium amortization/discount accretion associated with the fair value adjustments to acquired time deposits and borrowings and other debt, amortization of core deposit intangibles that would have resulted had the deposits been acquired as of January 1, 2019, and the related income tax effects. The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effected on the assumed date . Due diligence, professional fees, and other expenses related to the merger were incurred by the Company and AAB during the year ended December 31, 2020, but the pro forma condensed combined statement of income is not adjusted to exclude these costs. For the year ended December 31, (Dollars in thousands, except per share data) 2020 2019 Net interest income $ 66,796 $ 61,103 Noninterest income 29,714 17,206 Noninterest expense 60,300 53,174 Net income 20,433 17,647 Net income per diluted share 2.57 2.26

Securities

Securities	12 Months Ended
	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Securities	SECURITIESThe following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at December 31, 2021 and December 31, 2020 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income. (Dollars in thousands) Amortized Gross Gross Fair December 31, 2021 U.S. government sponsored entities & agencies $ 22,522 $ 21 $ (769) $ 21,774 State and political subdivision 141,751 6,972 (447) 148,276 Mortgage-backed securities: residential 22,316 97 (202) 22,211 Mortgage-backed securities: commercial 23,411 341 (481) 23,271 Collateralized mortgage obligations: residential 13,557 45 (141) 13,461 Collateralized mortgage obligations: commercial 51,882 444 (1,143) 51,183 U.S. Treasury 65,098 62 (773) 64,387 SBA 13,851 137 (61) 13,927 Asset backed securities 9,762 9 (65) 9,706 Corporate bonds 29,673 43 (361) 29,355 Total available-for-sale $ 393,823 $ 8,171 $ (4,443) $ 397,551 December 31, 2020 U.S. government sponsored entities & agencies $ 26,575 $ 103 $ (320) $ 26,358 State and political subdivision 124,053 8,751 (81) 132,723 Mortgage-backed securities: residential 25,729 352 — 26,081 Mortgage-backed securities: commercial 11,434 484 — 11,918 Collateralized mortgage obligations: residential 13,320 138 (12) 13,446 Collateralized mortgage obligations: commercial 57,398 1,206 (92) 58,512 SBA 17,639 61 (107) 17,593 Asset backed securities 10,229 — (157) 10,072 Corporate bonds 5,998 34 (3) 6,029 Total available-for-sale $ 292,375 $ 11,129 $ (772) $ 302,732 The proceeds from sales and calls of securities and the associated gains and losses for the periods below were as follows: (Dollars in thousands) For the year ended December 31, 2021 2020 2019 Proceeds $ 1,657 $ 47,849 $ 70,856 Gross gains 21 1,871 1,566 Gross losses — (9) (392) The amortized cost and fair value of securities are shown in the table below by contractual maturity. Expected maturities may differ from contractual maturities as issuers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2021 (Dollars in thousands) Amortized Fair Within one year $ 6,111 $ 6,151 One to five years 58,487 58,533 Five to ten years 190,549 190,429 Beyond ten years 138,676 142,438 Total $ 393,823 $ 397,551 Securities pledged at December 31, 2021 and December 31, 2020 had a carrying amount of $88.6 million and $98.7 million, respectively, and were pledged to secure Federal Home Loan Bank ("FHLB") advances, a Federal Reserve Bank line of credit, repurchase agreements, deposits and mortgage derivatives. As of December 31, 2021, the Bank held 68 tax-exempt state and local municipal securities totaling $52.3 million backed by the Michigan School Bond Loan Fund. Other than the aforementioned investments and the U.S. government and its agencies, at December 31, 2021 and December 31, 2020, there were no holdings of securities of any one issuer in an amount greater than 10% of shareholders' equity. The following table summarizes securities with unrealized losses at December 31, 2021 and December 31, 2020 aggregated by security type and length of time in a continuous unrealized loss position: Less than 12 Months 12 Months or Longer Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2021 Available-for-sale U.S. government sponsored entities & agencies $ — $ — $ 19,231 $ (769) $ 19,231 $ (769) State and political subdivision 26,710 (364) 5,259 (83) 31,969 (447) Mortgage-backed securities: residential 16,854 (202) 8 — 16,862 (202) Mortgage-backed securities: commercial 12,621 (337) 3,431 (144) 16,052 (481) Collateralized mortgage obligations: residential 10,713 (131) 885 (10) 11,598 (141) Collateralized mortgage obligations: commercial 16,966 (567) 13,238 (576) 30,204 (1,143) U.S. Treasury 54,671 (773) — — 54,671 (773) SBA — — 5,183 (61) 5,183 (61) Asset backed securities 4,703 (10) 2,411 (55) 7,114 (65) Corporate bonds 21,871 (283) 2,422 (78) 24,293 (361) Total available-for-sale $ 165,109 $ (2,667) $ 52,068 $ (1,776) $ 217,177 $ (4,443) December 31, 2020 Available-for-sale U.S. government sponsored entities & agencies $ 19,680 $ (320) $ — $ — $ 19,680 $ (320) State and political subdivision 4,880 (81) — — 4,880 (81) Collateralized mortgage obligations: residential — — 1,109 (12) 1,109 (12) Collateralized mortgage obligations: commercial 26,477 (92) — — 26,477 (92) SBA — — 12,209 (107) 12,209 (107) Asset backed securities — — 10,072 (157) 10,072 (157) Corporate bonds 2,497 (3) — — 2,497 (3) Total available-for-sale $ 53,534 $ (496) $ 23,390 $ (276) $ 76,924 $ (772) As of December 31, 2021, the Company's investment portfolio consisted of 332 securities, 82 of which were in an unrealized loss position. The unrealized losses for these securities resulted primarily from changes in interest rates since purchased. The Company expects full recovery of the carrying amount of these securities and does not intend to sell the securities in an unrealized loss position nor does it believe it will be required to sell securities in an unrealized loss position before the value is recovered. The Company did not consider these securities to be other-than-temporarily impaired at December 31, 2021.

Loans

Loans	12 Months Ended
	Dec. 31, 2021
Receivables [Abstract]
Loans	LOANS The following table presents the recorded investment in loans at December 31, 2021 and December 31, 2020. The recorded investment in loans excludes accrued interest receivable. (Dollars in thousands) Originated Acquired Total December 31, 2021 Commercial real estate $ 644,337 $ 106,427 $ 750,764 Commercial and industrial 420,635 39,895 460,530 Residential real estate 421,226 19,414 440,640 Consumer 771 66 837 Total $ 1,486,969 $ 165,802 $ 1,652,771 December 31, 2020 Commercial real estate $ 587,631 $ 133,201 $ 720,832 Commercial and industrial 629,434 56,070 685,504 Residential real estate 280,645 34,831 315,476 Consumer 748 977 1,725 Total $ 1,498,458 $ 225,079 $ 1,723,537 At December 31, 2021 and December 31, 2020, the Company had residential loans held for sale, which were originated with the intent to sell, totaling $12.9 million and $43.5 million, respectively. During the years ended December 31, 2021 and 2020, the Company sold residential real estate loans with proceeds totaling $482.0 million and $545.6 million, respectively. At December 31, 2021 and December 31, 2020, $76.5 million and $290.1 million, respectively, of PPP loans were included in the commercial and industrial loan balance. The Bank was a participating lender in the Small Business Administration's (“SBA”) Paycheck Protection Program (“PPP”). PPP loans are forgivable, in whole or in part, if the proceeds are used for payroll and other permitted purposes in accordance with the requirements of the PPP. These loans carry a fixed rate of 1.00% and a term of two years (loans made before June 5, 2020) or five years (loans made on or after June 5, 2020), if not forgiven, in whole or in part. Payments are deferred until either the date on which the SBA remits the amount of forgiveness proceeds to the lender or the date that is 10 months after the last day of the covered period if the borrower does not apply for forgiveness within that 10 month period. Fees generated based on the origination of PPP loans are deferred and amortized into interest income over the contractual period of 24 months or 60 months, as applicable. Upon SBA forgiveness, unamortized fees are then recognized into interest income. During 2020 and 2021, the bank originated 3,763 PPP loans with a total originated principal balance of $667.2 million generating net fee income of $20.6 million. Net fee income of $12.9 million and $6.5 million were recognized during the years ended December 31, 2021 and 2020, respectively. As of December 31, 2021, 3,260 of the 3,763 originated loans had been forgiven. Nonperforming Assets Nonperforming assets consist of loans for which the accrual of interest has been discontinued and other real estate owned obtained through foreclosure and other repossessed assets. Loans outside of those accounted for under ASC 310-30 are classified as nonaccrual when, in the opinion of management, it is probable that the Company will be unable to collect all the contractual interest and principal payments as scheduled in the loan agreement. The accrual of interest is discontinued when a loan is placed in nonaccrual status and any payments received reduce the carrying value of the loan. A loan may be placed back on accrual status if all contractual payments have been received and collection of future principal and interest payments is no longer doubtful. Acquired loans that are not performing in accordance with contractual terms are not reported as nonperforming because these loans are recorded at their net realizable value based on the principal and interest the Company expects to collect on these loans. There were $206 thousand and $12 thousand in commitments to lend additional funds to borrowers whose loans were classified as nonaccrual as of December 31, 2021 and December 31, 2020, respectively. Information as to nonperforming assets was as follows: (Dollars in thousands) December 31, 2021 December 31, 2020 Nonaccrual loans: Commercial real estate $ 4,246 $ 7,320 Commercial and industrial 4,208 7,490 Residential real estate 2,819 3,991 Consumer 16 15 Total nonaccrual loans 11,289 18,816 Other real estate owned 201 — Total nonperforming assets $ 11,490 $ 18,816 Loans 90 days or more past due and still accruing $ 162 $ 269 At December 31, 2021 and December 31, 2020, the loans that were 90 days or more past due and still accruing were PCI loans. Loan delinquency as of the dates presented below was as follows: (Dollars in thousands) Current 30 - 59 Days 60 - 89 Days 90+ Days Total December 31, 2021 Commercial real estate $ 750,666 $ 98 $ — $ — $ 750,764 Commercial and industrial 460,419 107 4 — 460,530 Residential real estate 436,009 2,443 851 1,337 440,640 Consumer 821 — 7 9 837 Total $ 1,647,915 $ 2,648 $ 862 $ 1,346 $ 1,652,771 December 31, 2020 Commercial real estate $ 714,196 $ 4,863 $ 1,773 $ — $ 720,832 Commercial and industrial 681,106 893 3,505 — 685,504 Residential real estate 305,800 5,420 1,110 3,146 315,476 Consumer 1,723 — — 2 1,725 Total $ 1,702,825 $ 11,176 $ 6,388 $ 3,148 $ 1,723,537 Impaired Loans: Information as to impaired loans, excluding PCI loans, was as follows: (Dollars in thousands) December 31, 2021 December 31, 2020 Nonaccrual loans $ 11,289 $ 18,816 Performing troubled debt restructurings: Commercial and industrial 334 546 Residential real estate 365 432 Total performing troubled debt restructurings 699 978 Total impaired loans, excluding purchase credit impaired loans $ 11,988 $ 19,794 Troubled Debt Restructurings: The Company assesses loan modifications to determine whether a modification constitutes a troubled debt restructuring ("TDR"). This applies to all loan modifications except for modifications to loans accounted for in pools under ASC 310-30, which are not subject to TDR accounting/classification. For loans excluded from ASC 310-30 accounting, a modification is considered a TDR when a borrower is experiencing financial difficulties and the Company grants a concession to the borrower. For loans accounted for individually under ASC 310-30, a modification is considered a TDR when a borrower is experiencing financial difficulties and the effective yield after the modification is less than the effective yield at the time the loan was acquired or less than the effective yield of any re-estimation of cash flows subsequent to acquisition in association with consideration of qualitative factors included within ASC 310-40. All TDRs are considered impaired loans. The nature and extent of impairment of TDRs, including those which have experienced a subsequent default, are considered in the determination of an appropriate level of allowance for loan losses. The CARES Act was signed into law on March 27, 2020, which provides a variety of provisions, including, among other things, a small business lending program to originate paycheck protection loans, temporary relief for the community bank leverage ratio, and temporary relief for financial institutions related to troubled debt restructurings. On December 27, 2020, the Consolidated Appropriations Act, 2021 was signed into law and extends the relief related to troubled debt restructurings to the earlier of January 1, 2022 or 60 days after the national emergency termination date. As a result of the COVID-19 pandemic, the Company is currently working with borrowers to provide short-term payment modifications. Any short-term modifications made on a good-faith basis in response to the COVID-19 pandemic to borrowers who were current prior to any relief are not considered TDRs based on interagency guidance. This includes short-term modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program was implemented. The Company’s modification programs are designed to provide temporary relief for current borrowers affected by the COVID-19 pandemic. The Company has presumed that borrowers that are current on payments are not experiencing financial difficulties at the time of the modification for purposes of determining TDR status, and thus no further TDR analysis is required for each loan modification in the program. As of December 31, 2021 and December 31, 2020, the Company had a recorded investment in troubled debt restructurings of $4.1 million and $4.8 million, respectively. The Company allocated a specific reserve of $314 thousand for those loans at December 31, 2021 and a specific reserve of $317 thousand for those loans at December 31, 2020. The Company had not committed to lend additional amounts to borrowers whose loans have been modified. As of December 31, 2021, there were $3.4 million of nonperforming TDRs and $699 thousand of performing TDRs included in impaired loans. As of December 31, 2020, there were $3.8 million of nonperforming TDRs and $978 thousand of performing TDRs included in impaired loans. All TDRs are considered impaired loans in the calendar year of their restructuring. A loan that has been modified can return to performing status if it satisfies a six-month performance requirement; however, it will continue to be reported as a TDR and considered impaired. The following table presents the recorded investment of loans modified as TDRs during the years ended December 31, 2020, and 2019 by type of concession granted. There were three loans modified as TDRs during the year ended December 31, 2021 which were subsequently paid off during the third quarter of 2021. In cases where more than one type of concession was granted, the loans were categorized based on the most significant concession. Concession type Financial effects of (Dollars in thousands) Principal Interest Forbearance Total Total Net Provision For the year ended December 31, 2021 Commercial real estate $ — $ — $ — 1 $ — $ — $ — Commercial and industrial — — — 2 — — — Total $ — $ — $ — 3 $ — $ — $ — For the year Ended December 31, 2020 Commercial real estate $ 1,654 $ — $ — 2 $ 1,654 $ — $ — Residential real estate — 74 — 1 74 — — Total $ 1,654 $ 74 $ — 3 $ 1,728 $ — $ — For the year ended December 31, 2019 Commercial and industrial — — 332 2 332 — 174 Total $ — $ — $ 332 2 $ 332 $ — $ 174 On an ongoing basis, the Company monitors the performance of TDRs to their modified terms. The following table presents the number of loans modified as TDRs during the twelve months ended December 31, 2020 and 2019 for which there was a subsequent payment default including the recorded investment as of the period end. There were no loans modified as TDRs during the twelve months ended December 31, 2021 for which there was a subsequent payment default. A payment on a TDR is considered to be in default once it is greater than 30 days past due. For the year ended December 31, 2020 (Dollars in thousands) Total number of Total recorded Provision for loan losses following a Commercial real estate 1 $ 203 $ — Total 1 $ 203 $ — For the year ended December 31, 2019 (Dollars in thousands) Total number of Total recorded Provision for loan losses following a Commercial and industrial 1 $ 42 $ 12 Total 1 $ 42 $ 12 Credit Quality Indicators: 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 Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes commercial and industrial and commercial real estate loans and is performed on an annual basis. The Company uses the following definitions for risk ratings: Pass. Loans classified as pass are higher quality loans that do not fit any of the other categories described below. This category includes loans risk rated with the following ratings: cash/stock secured, excellent credit risk, superior credit risk, good credit risk, satisfactory credit risk, and marginal credit risk. Special Mention. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company's credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Based on the most recent analysis performed, the risk category of loans by class of loans was as follows: (Dollars in thousands) Pass Special Substandard Doubtful Total December 31, 2021 Commercial real estate $ 714,487 $ 25,282 $ 10,518 $ 477 $ 750,764 Commercial and industrial 396,210 48,972 14,348 1,000 460,530 Total $ 1,110,697 $ 74,254 $ 24,866 $ 1,477 $ 1,211,294 December 31, 2020 Commercial real estate $ 685,690 $ 21,570 $ 13,045 $ 527 $ 720,832 Commercial and industrial 637,285 25,727 21,876 616 685,504 Total $ 1,322,975 $ 47,297 $ 34,921 $ 1,143 $ 1,406,336 For residential real estate loans and consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity. Residential real estate loans and consumer loans are considered nonperforming if they are 90 days or more past due. Consumer loan types are continuously monitored for changes in delinquency trends and other asset quality indicators. The following presents residential real estate and consumer loans by credit quality: (Dollars in thousands) Performing Nonperforming Total December 31, 2021 Residential real estate $ 437,821 $ 2,819 $ 440,640 Consumer 821 16 837 Total $ 438,642 $ 2,835 $ 441,477 December 31, 2020 Residential real estate $ 311,485 $ 3,991 $ 315,476 Consumer 1,710 15 1,725 Total $ 313,195 $ 4,006 $ 317,201 Purchased Credit Impaired Loans: As part of the Company's previous five acquisitions, the Company acquired purchase credit impaired ("PCI") loans for which there was evidence of credit quality deterioration since origination, and we determined that it was probable that the Company would be unable to collect all contractually required principal and interest payments. The total balance of all PCI loans from these acquisitions was as follows: (Dollars in thousand) Unpaid Principal Balance Recorded Investment December 31, 2021 Commercial real estate $ 4,353 $ 1,597 Commercial and industrial 235 1 Residential real estate 3,416 2,577 Total PCI loans $ 8,004 $ 4,175 December 31, 2020 Commercial real estate $ 5,109 $ 1,773 Commercial and industrial 643 274 Residential real estate 4,017 2,949 Total PCI loans $ 9,769 $ 4,996 The following table reflects the activity in the accretable yield of PCI loans from past acquisitions, which includes total expected cash flows, including interest, in excess of the recorded investment. For the year ended December 31, (Dollars in thousands) 2021 2020 2019 Accretable yield at beginning of period $ 7,097 $ 9,141 $ 10,947 Additions due to acquisitions — 35 — Accretion of income (1,454) (1,760) (2,313) Adjustments to accretable yield 29 (319) 507 Accretable yield at end of period $ 5,672 $ 7,097 $ 9,141 "Additions due to acquisitions" represents the accretable yield added as a result of the AAB acquisition. "Accretion of income" represents the income earned on these loans for the year. For the years ended December 31, 2021 and 2020, allowance for loan losses on PCI loans decreased by $80 thousand and $95 thousand, respectively. Related Party Loans: We have extended loans to certain of our directors, executive officers, principal shareholders and their affiliates. The aggregate loans outstanding to the directors, executive officers, principal shareholders and their affiliates as of December 31, 2021 and 2020 totaled approximately $1.3 million and $8.9 million, respectively. During 2021 and 2020, there were $684 thousand and $6.6 million, respectively, of new loans and other additions, while repayments and other reductions totaled $8.2 million and $1.8 million, respectively. In the normal course of business, the Company offers a variety of financial instruments with off-balance sheet risk to meet the financing needs of its customers. These financial instruments include outstanding commitments to extend credit, credit lines, commercial letters of credit and standby letters of credit. Commitments to extend credit are agreements to provide credit to a customer, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used and the total commitment amounts do not necessarily represent future cash flow requirements. Standby letters of credit and commercial letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party, while commercial letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and the third party. These financial standby letters of credit irrevocably obligate the Company to pay a third-party beneficiary when a customer fails to repay an outstanding loan or debt instrument. Off-balance sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies used for loans are used to make such commitments, including obtaining collateral at exercise of the commitment. We maintain an allowance to cover probable losses inherent in our financial instruments with off-balance sheet risk. At December 31, 2021, the allowance for off-balance sheet risk was $369 thousand, compared to $490 thousand at December 31, 2020, and was included in "Other liabilities" on our consolidated balance sheets. A summary of the contractual amounts of the Company's exposure to off-balance sheet risk is as follows: December 31, 2021 December 31, 2020 (Dollars in thousands) Fixed Variable Fixed Variable Commitments to make loans $ 13,532 $ 13,531 $ 18,269 $ 17,058 Unused lines of credit 49,841 392,186 28,898 385,307 Unused standby letters of credit and commercial letters of credit 2,145 — 2,340 1,992 Commitments to make loans are generally made for periods of 90 days or less. The fixed rate loan commitments of $13.5 million as of December 31, 2021, had interest rates ranging from 2.89% to 5.25% and maturities ranging from 7 months to 18 years.

Allowance for Loan Losses

Allowance for Loan Losses	12 Months Ended
	Dec. 31, 2021
Receivables [Abstract]
Allowance for Loan Losses	ALLOWANCE FOR LOAN LOSSES An allowance for loan losses is maintained to absorb probable incurred losses from the loan portfolio. The allowance for loan losses is based on management's continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of nonaccrual loans. The Company established an allowance for loan losses associated with PCI loans (accounted for under ASC 310-30) based on credit deterioration subsequent to the acquisition date. As of December 31, 2021, the Company had 5 PCI loan pools and 9 non-pooled PCI loans. The Company re-estimates cash flows expected to be collected for PCI loans on a semi-annual basis, with any decline in expected cash flows recorded as provision for loan losses on a discounted basis during the period. For any increases in cash flows expected to be collected, the Company adjusts the amount of accretable yield to be recognized on a prospective basis over the loan's remaining life. For loans not accounted for under ASC 310-30, the Company individually evaluates certain impaired loans on a quarterly basis and establishes specific allowances for such loans, if required. A loan is considered impaired when it is probable that interest or principal payments will not be made in accordance with the contractual terms of the loan agreement. Consistent with this definition, all loans for which the accrual of interest has been discontinued (nonaccrual loans) and all TDRs are considered impaired. The Company individually evaluates nonaccrual loans with book balances of $250 thousand or more, all loans whose terms have been modified in a TDR, and certain other loans. The threshold for individual evaluation is revised on an infrequent basis, generally when economic circumstances significantly change. Specific allowances for impaired loans are estimated using one of several methods, including the estimated fair value of underlying collateral, observable market value of similar debt or discounted expected future cash flows. All other impaired loans are individually evaluated by identifying its risk characteristics and applying the standard reserve factor for the corresponding loan pool. Loans which do not meet the criteria to be individually evaluated are evaluated in pools of loans with similar risk characteristics. Business loans are assigned to pools based on the Company's internal risk rating system. Internal risk ratings are assigned to each business loan at the time of approval and are subjected to subsequent periodic reviews by the Company's senior management, generally at least annually or more frequently upon the occurrence of a circumstance that affects the credit risk of the loan. For business loans not individually evaluated, losses inherent to the pool are estimated by applying standard reserve factors to outstanding principal balances. The allowance for loans not individually evaluated is determined by applying estimated loss rates to various pools of loans within the portfolios with similar risk characteristics. Estimated loss rates for all pools are updated quarterly, incorporating quantitative and qualitative factors such as recent charge-off experience, current economic conditions and trends, changes in collateral values of properties securing loans (using index-based estimates), and trends with respect to past due and nonaccrual amounts. Loans acquired in business combinations are initially recorded at fair value, which includes an estimate of credit losses expected to be realized over the remaining lives of the loans, and therefore no corresponding allowance for loan losses is recorded for these loans at acquisition. Methods utilized to estimate any subsequently required allowance for loan losses for acquired loans not deemed credit-impaired at acquisition are similar to originated loans; however, the estimate of loss is based on the unpaid principal balance less any remaining purchase discount. Loans individually evaluated for impairment are presented below. (Dollars in thousands) Recorded investment with Recorded investment Total Contractual Related December 31, 2021 Individually evaluated impaired loans: Commercial real estate $ 4,246 $ — $ 4,246 $ 4,636 $ — Commercial and industrial 3,854 688 4,542 5,223 292 Residential real estate 802 136 938 1,264 29 Total $ 8,902 $ 824 $ 9,726 $ 11,123 $ 321 December 31, 2020 Individually evaluated impaired loans: Commercial real estate $ 7,320 $ — $ 7,320 $ 7,720 $ — Commercial and industrial 7,964 630 8,594 9,208 307 Residential real estate 2,153 192 2,345 2,447 25 Total $ 17,437 $ 822 $ 18,259 $ 19,375 $ 332 (Dollars in thousands) Average Interest Cash Basis For the year ended December 31, 2021 Individually evaluated impaired loans: Commercial real estate $ 5,018 $ — $ 345 Commercial and industrial 6,008 27 237 Residential real estate 1,287 22 10 Total $ 12,313 $ 49 $ 592 For the year ended December 31, 2020 Individually evaluated impaired loans: Commercial real estate $ 7,981 $ — $ 10 Commercial and industrial 14,008 46 87 Residential real estate 3,304 36 55 Total $ 25,293 $ 82 $ 152 For the year ended December 31, 2019 Individually evaluated impaired loans: Commercial real estate $ 4,233 $ 2 $ 209 Commercial and industrial 8,514 43 573 Residential real estate 1,904 29 9 Total $ 14,651 $ 74 $ 791 Activity in the allowance for loan losses is presented below: (Dollars in thousands) Commercial Commercial Residential Consumer Total For the year ended December 31, 2021 Allowance for loan losses: Beginning balance $ 9,975 $ 8,786 $ 3,527 $ 9 $ 22,297 Provision for (recovery of) loan losses (520) (1,009) 795 9 (725) Gross chargeoffs — (31) (242) (33) (306) Recoveries — 53 86 20 159 Net (chargeoffs) recoveries — 22 (156) (13) (147) Ending allowance for loan losses $ 9,455 $ 7,799 $ 4,166 $ 5 $ 21,425 For the year ended December 31, 2020 Allowance for loan losses: Beginning balance $ 5,773 $ 5,515 $ 1,384 $ 2 $ 12,674 Provision for loan losses 4,190 5,302 2,343 37 11,872 Gross chargeoffs — (2,118) (285) (58) (2,461) Recoveries 12 87 85 28 212 Net (chargeoffs) recoveries 12 (2,031) (200) (30) (2,249) Ending Allowance for loan losses $ 9,975 $ 8,786 $ 3,527 $ 9 $ 22,297 For the year ended December 31, 2019 Allowance for loan losses: Beginning balance $ 5,227 $ 5,174 $ 1,164 $ 1 $ 11,566 Provision for loan losses 632 533 143 75 1,383 Gross chargeoffs (92) (438) — (106) (636) Recoveries 6 246 77 32 361 Net (chargeoffs) recoveries (86) (192) 77 (74) (275) Ending Allowance for loan losses $ 5,773 $ 5,515 $ 1,384 $ 2 $ 12,674 Allocation of the allowance for loan losses is presented below: (Dollars in thousands) Commercial Commercial Residential Consumer Total December 31, 2021 Allowance for loan losses: Individually evaluated for impairment $ — $ 292 $ 29 $ — $ 321 Collectively evaluated for impairment 9,088 7,506 3,917 5 20,516 Acquired with deteriorated credit quality 367 1 220 — 588 Ending allowance for loan losses $ 9,455 $ 7,799 $ 4,166 $ 5 $ 21,425 Balance of loans: Individually evaluated for impairment $ 4,246 $ 4,542 $ 938 $ — $ 9,726 Collectively evaluated for impairment 744,921 455,987 437,125 837 1,638,870 Acquired with deteriorated credit quality 1,597 1 2,577 — 4,175 Total loans $ 750,764 $ 460,530 $ 440,640 $ 837 $ 1,652,771 December 31, 2020 Allowance for loan losses: Individually evaluated for impairment $ — $ 307 $ 25 $ — $ 332 Collectively evaluated for impairment 9,550 8,465 3,273 9 21,297 Acquired with deteriorated credit quality 425 14 229 — 668 Ending allowance for loan losses $ 9,975 $ 8,786 $ 3,527 $ 9 $ 22,297 Balance of loans: Individually evaluated for impairment $ 7,320 $ 8,594 $ 2,345 $ — $ 18,259 Collectively evaluated for impairment 711,739 676,636 310,182 1,725 1,700,282 Acquired with deteriorated credit quality 1,773 274 2,949 — 4,996 Total loans $ 720,832 $ 685,504 $ 315,476 $ 1,725 $ 1,723,537

Premises and Equipment

Premises and Equipment	12 Months Ended
	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Premises and Equipment	PREMISES AND EQUIPMENT Premises and equipment were as follows at December 31, 2021 and December 31, 2020: (Dollars in thousands) December 31, 2021 December 31, 2020 Land and land improvements $ 3,572 $ 3,514 Buildings 10,710 10,656 Leasehold improvements 3,027 3,017 Furniture, fixtures and equipment 8,254 7,786 Total premises and equipment $ 25,563 $ 24,973 Less: Accumulated depreciation 10,660 9,139 Net premises and equipment $ 14,903 $ 15,834 Depreciation expense was $1.6 million, $1.7 million and $1.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. Most of the Company's branch facilities are rented under non-cancelable operating lease agreements. Total rent expense was $1.8 million, $1.8 million, and $1.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. Rent commitments under non-cancelable operating leases (including renewal options that the Company will likely exercise) were as follows: (Dollars in thousands) As of December 31, 2021 2022 $ 1,833 2023 1,792 2024 1,393 2025 1,268 2026 1,123 Thereafter 3,110 Total lease commitments $ 10,519

Goodwill and Intangible Assets

Goodwill and Intangible Assets	12 Months Ended
	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	GOODWILL AND INTANGIBLE ASSETS Goodwill: The Company has acquired three banks, Lotus Bank in March 2015, Bank of Michigan in March 2016, and Ann Arbor State Bank in January 2020, which resulted in the recognition of goodwill of $4.6 million, $4.8 million, and $26.2 million, respectively. Total goodwill was $35.6 million at December 31, 2021 and December 31, 2020. Goodwill is not amortized but is evaluated annually for impairment and on an interim basis if events or changes in circumstances indicate that goodwill might be impaired. The goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount, and an impairment charge would be recognized for any amount by which the carrying amount exceeds the reporting unit's fair value. As a result of the unprecedented decline in economic conditions triggered by the COVID-19 pandemic, the market valuations, including our stock price, saw a significant decline in March 2020, which then continued into the second quarter of 2020. These events indicated that goodwill may be impaired and resulted in management performing a qualitative goodwill impairment assessment in the second quarter of 2020. As a result of the analysis, we concluded that it was more-likely-than-not that the fair value of the reporting unit could be greater than its carrying amount. Since the price of our stock did not fully recover during the third quarter of 2020, the Company engaged a third-party valuation firm to perform a quantitative analysis of goodwill as of August 31, 2020 ("the valuation date"). In deriving the fair value of the reporting unit (the Bank), the third-party firm assessed general economic conditions and outlook; industry and market considerations and outlook; the impact of recent events on financial performance; the market price of our common stock and other relevant events. In addition, the valuation relied on financial projections through 2023 and growth rates prepared by management. Based on the valuation prepared, it was determined that the Company's estimated fair value of the reporting unit at August 31, 2020 was greater than its book value, and impairment of goodwill was not required. The Company completed its annual goodwill impairment review as of October 1, 2021, noting strong financial indicators for the Bank, solid credit quality ratios, as well as the strong capital position of the Bank. Management also determined that no triggering events have occurred that indicated impairment from the most recent valuation date through December 31, 2021, the stock was trading above book value as of December 31, 2021, and it is more likely than not that there was no goodwill impairment as of December 31, 2021. Intangible Assets : The Company recorded core deposit intangibles ("CDIs") associated with each of its acquisitions. CDIs are amortized on an accelerated basis over their estimated useful lives. The table below presents the Company's net carrying amount of CDIs: (Dollars in thousands) December 31, 2021 December 31, 2020 Gross carrying amount $ 5,708 $ 5,708 Accumulated amortization (3,180) (2,512) Net Intangible $ 2,528 $ 3,196 Amortization expense for the CDIs was $668 thousand, $768 thousand and $146 thousand for the years ended December 31, 2021, 2020 and 2019, respectively. As of December 31, 2021, estimated amortization expense for each of the next five years is as follows: (Dollars in thousands) 2022 $ 586 2023 506 2024 425 2025 344 2026 268

Mortgage Servicing Rights, Net

Mortgage Servicing Rights, Net	12 Months Ended
	Dec. 31, 2021
Mortgage Banking [Abstract]
Mortgage Servicing Rights, Net	MORTGAGE SERVICING RIGHTS, NET The Company has recorded a mortgage servicing rights asset for residential real estate mortgage loans that are sold to the secondary market for which servicing has been retained. Residential real estate mortgage loans serviced for others are not included in the consolidated balance sheets. Mortgage servicing rights are carried at the lower of the initial capitalized amount, net of accumulated amortization or estimated fair value. Mortgage servicing rights are amortized in proportion to and over the period of estimated net servicing income. The unpaid principal balances of these loans at December 31, 2021 and December 31, 2020 were as follows: (Dollars in thousands) December 31, 2021 December 31, 2020 Residential real estate mortgage loan portfolios serviced for: FNMA $ 601,952 $ 320,467 Custodial escrow balances maintained with these serviced loans were $2.8 million and $1.9 million at December 31, 2021 and December 31, 2020, respectively. Activity for mortgage servicing rights was as follows for the years ended December 31, 2021, 2020 and 2019: For the year ended December 31, (Dollars in thousands) 2021 2020 2019 Mortgage servicing rights: Balance, beginning of period $ 3,361 $ 76 $ — Originated servicing 3,715 3,540 77 Amortization (1,472) (255) (1) Balance, end of period $ 5,604 $ 3,361 $ 76 Servicing fee income, net of amortization of servicing rights and changes in the valuation allowance was $(322) thousand and $24 thousand for the years ended December 31, 2021 and 2020, respectively. There was no servicing fee income for the year ended December 31, 2019. The Company recorded a valuation allowance of $17 thousand related to mortgage servicing rights during the first quarter of 2020, which was then reversed during the second quarter of 2020 as a result of the fair value at June 30, 2020 being higher than book value. The fair value remained higher than book value at December 31, 2021. There was no valuation allowance related to mortgage servicing rights during the year ended December 31, 2020.

Deposits

Deposits	12 Months Ended
	Dec. 31, 2021
Banking and Thrift, Other Disclosures [Abstract]
Deposits	DEPOSITSTime deposits that met or exceeded the FDIC insurance limit of $250,000 were $267.3 million and $380.3 million at December 31, 2021 and 2020, respectively. At December 31, 2021, brokered deposits totaled $23.1 million, compared to $29.3 million at December 31, 2020. As of December 31, 2021, the scheduled maturities of total time deposits were as follows: (Dollars in thousands) December 31, 2021 Due in 2022 $ 359,707 Due in 2023 49,466 Due in 2024 14,570 Due in 2025 1,778 Due in 2026 280 Total $ 425,801

Borrowings and Subordinated Deb

Borrowings and Subordinated Debt	12 Months Ended
	Dec. 31, 2021
Debt Disclosure [Abstract]
Borrowings and Subordinated Debt	BORROWINGS AND SUBORDINATED DEBT The following table presents the components of our short-term borrowings and long-term debt. December 31, 2021 December 31, 2020 (Dollars in thousands) Amount Weighted (1) Amount Weighted (1) Short-term borrowings: Securities sold under agreements to repurchase $ 2,342 0.25 % $ 3,204 0.30 % Total short-term borrowings 2,342 0.25 3,204 0.30 Long-term debt: Secured borrowing due in 2022 1,254 1.00 1,304 1.00 FHLB advances due in 2022 to 2029 (2) 175,086 1.03 181,176 1.09 Subordinated notes due in 2025 and 2029 (3) 29,694 4.75 44,592 5.29 Total long-term debt 206,034 1.57 227,072 1.91 Total short-term and long-term borrowings $ 208,376 1.56 % $ 230,276 1.89 % (1) Weighted average rate presented is the contractual rate which excludes premiums and discounts related to purchase accounting. (2) At December 31, 2021, the long-term FHLB advances consisted of 0.42% - 2.93% fixed rate notes and can be called through 2024 without penalty by the issuer. The December 31, 2021 balance includes FHLB advances of $175.0 million and purchase accounting premiums of $86 thousand. The December 31, 2020 balance includes FHLB advances of $181.0 million and purchase accounting premiums of $176 thousand. (3) The December 31, 2021 balance includes subordinated notes of $30.0 million and debt issuance costs of $306 thousand. The December 31, 2020 balance includes subordinated notes of $45.0 million and debt issuance costs of $408 thousand. The following table presents long-term borrowings by contractual maturity date: (Dollars in thousands) As of December 31, 2021 2022 $ 11,254 2023 3,039 2024 30,000 2025 2,047 2026 — Thereafter 159,694 Total long-term borrowings $ 206,034 The Bank is a member of the FHLB of Indianapolis, which provides short- and long-term funding collateralized by mortgage-related assets to its members. FHLB short-term borrowings bear interest at variable rates based on LIBOR. The $175.0 million of long-term FHLB advances as of December 31, 2021 were secured by a blanket lien on $580.6 million of real estate-related loans. Based on this collateral and the Company's holdings of FHLB stock, the Company was eligible to borrow up to an additional $228.7 million from the FHLB at December 31, 2021. In addition, the Bank can borrow up to $157.5 million through the unsecured lines of credit it has established with other correspondent banks, as well as $5.0 million through a secured line with the Federal Reserve Bank. The Bank had no outstanding federal funds purchased as of December 31, 2021 and December 31, 2020. At December 31, 2021, the Company had $2.3 million of securities sold under agreements to repurchase with customers, which mature overnight. These borrowings were secured by residential collateralized mortgage obligation securities with a fair value of $4.0 million at December 31, 2021. The Company had a secured borrowing of $1.3 million as of December 31, 2021 relating to certain loan participations sold by the Company that did not qualify for sales treatment. The secured borrowing bears a fixed rate of 1.00% and matures on September 15, 2022. At December 31, 2021, the Company had $30.0 million outstanding subordinated notes and $306 thousand of debt issuance costs. The debt issuance costs are netted against the balance of the subordinated notes and recognized as expense over the expected term of the notes. The $15.0 million of subordinated notes issued on December 21, 2015 had a fixed interest rate of 6.375% per annum, payable semiannually through December 15, 2020. As of December 15, 2020, the notes had a floating interest rate of three-month LIBOR plus 477 basis points payable quarterly through maturity. The notes were scheduled to mature on December 15, 2025, and the Company had the option to redeem or prepay any or all of the subordinated notes without premium or penalty any time after December 15, 2020 or upon an occurrence of a Tier 2 capital event or tax event. These subordinated notes were redeemed in June 2021. The $30.0 million of subordinated notes issued on December 18, 2019 bear a fixed interest rate of 4.75% per annum, payable semiannually through December 18, 2024. The notes will bear a floating interest rate of three-month secured overnight financing rate (SOFR) plus 311 basis points payable quarterly after December 18, 2024 through maturity. The notes mature on December 18, 2029, and the Company has the option to redeem any or all of the subordinated notes without premium or penalty any time after December 18, 2024 or upon the occurrence of a Tier 2 capital event or tax event. The Company has a short term line of credit of $30.0 million with Comerica Bank with a fixed interest rate of 4.05% per annum and a commitment fee of 0.20% on the average daily balance of the unused portion of the line of credit. As of December 31, 2021, the Company had no balance on the Comerica Bank line of credit. The Company participated in the PPP and also had the ability to borrow from the Federal Reserve's special purpose Paycheck Protection Program Liquidity Facility ("PPPLF") for additional funding. At December 31, 2021, the Company had no borrowings from the PPPLF.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES The Company and its subsidiaries are subject to U.S. federal income tax. In the ordinary course of business, we are routinely subject to audit by Internal Revenue Service. Currently, the Company is subject to examination by taxing authorities for the 2017 tax return year and forward. The current and deferred components of the provision for income taxes were as follows: For the year ended December 31, (Dollars in thousands) 2021 2020 2019 Current expense $ 5,965 $ 7,268 $ 3,995 Deferred expense (benefit) 1,414 (3,315) (592) Total $ 7,379 $ 3,953 $ 3,403 A reconciliation of expected income tax expense using the federal statutory rate of 21% as of December 31, 2021, 2020 and 2019 and actual income tax expense is as follows: For the year ended December 31, (Dollars in thousands) 2021 2020 2019 Income tax expense based on federal corporate tax rate $ 8,370 $ 5,117 $ 4,098 Changes resulting from: Tax-exempt income (634) (589) (538) Captive insurance benefit (1) (156) (182) Net operating loss carryback due to CARES Act — (290) — Disqualified dispositions from stock options (4) (178) (13) Other, net (352) 49 38 Income tax expense $ 7,379 $ 3,953 $ 3,403 In March 2020, the United States government approved the CARES Act, allowing companies to carryback net operating losses generated in 2018 through 2020 for five years to periods in which the tax rate was higher. Ann Arbor State Bank had a net operating loss ("NOL") of approximately $2.2 million generated on its 2020 short tax return which resulted in an increase in value of the NOL (which is part of the deferred tax assets) and therefore a $290 thousand tax benefit to be recognized during the first quarter of 2020. Additionally, disqualified dispositions of Ann Arbor State Bank’s stock options generated a $175 thousand tax benefit in the first quarter of 2020. Upon exercise or vesting of a share-based award, if the tax deduction exceeds the compensation cost that was previously recorded for financial statement purposes, this will result in an excess tax benefit. A tax benefit of $187 thousand and $189 thousand was recorded during the years ended December 31, 2021 and 2020, respectively, as a result of share awards vesting/exercised during the year. The tax effects of temporary differences that resulted in the significant components of deferred tax assets and liabilities at December 31, 2021 and 2020 are as follows: For the years ended December 31, (Dollars in thousands) 2021 2020 Deferred tax assets: Allowance for loan losses $ 4,499 $ 4,682 Net operating loss — 757 Deferred compensation 280 215 Restricted stock awards 320 290 Stock options 91 126 Deferred loan fees 700 1,403 Nonaccrued interest 173 215 Accrued expenses 395 370 Other 35 63 Total gross deferred tax assets 6,493 8,121 Deferred tax liabilities: Unrealized gain—available for sale securities (783) (2,175) Depreciation (831) (914) Prepaid expenses (215) (212) Business combination adjustments (969) (1,080) Partnership investments (362) (381) Other (43) (47) Total gross deferred tax liabilities (3,203) (4,809) Net deferred tax assets $ 3,290 $ 3,312 Management has determined that a valuation allowance is not required for the deferred tax assets at December 31, 2021 because it is more likely than not that these assets could be realized through carry back to taxable income in prior years, future reversals of existing taxable temporary differences, tax planning strategies and future taxable income. This conclusion is based on the Company's historical earnings, its current level of earnings and prospects for continued growth and profitability. There were no unrecognized tax benefits at December 31, 2021, and the Company does not expect the total amount of unrecognized tax benefits to significantly increase in the next twelve months. The Company recognizes interest and/or penalties related to income tax matters in income tax expense when applicable. The Company did not record any interest and penalties for 2021, 2020, and 2019.

Stock Based Compensation

Stock Based Compensation	12 Months Ended
	Dec. 31, 2021
Share-based Payment Arrangement [Abstract]
Stock Based Compensation	STOCK BASED COMPENSATION On March 15, 2018, the Company’s Board of Directors approved the 2018 Equity Incentive Plan ("2018 Plan"). The 2018 Plan became effective upon shareholder approval at the annual shareholders meeting held on April 17, 2018. Under the 2018 Plan, the Company can grant incentive and non-qualified stock options, stock awards, stock appreciation rights, and other incentive awards to directors and employees of, and certain service providers to, the Company and its subsidiaries. Once the 2018 Plan became effective, no further awards could be granted from the 2007 Stock Option Plan ("Stock Option Plan") or the 2014 Equity Incentive Plan ("2014 Plan"). However, any outstanding equity awards granted under the Stock Option Plan or the 2014 Plan will remain subject to the terms of such plans until the time such awards are no longer outstanding. The Company reserved 250,000 shares of common stock for issuance under the 2018 Plan. During the years ended December 31, 2021 and 2020, the Company issued 55,320 and 38,170 restricted stock awards, respectively, under the 2018 Plan. There were 120,827 shares available for issuance as of December 31, 2021. Stock Options As of December 31, 2021, all of the Company's outstanding options were granted under the Stock Option Plan. The term of these options is ten years, and they vest one-third each year, over a three year period. The Company will use authorized but unissued shares to satisfy share option exercises. The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model. Expected volatilities are based on historical volatilities of the Company's common stock. The Company assumes all awards will vest. The expected term of options granted 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. There were no stock options granted during the years ended December 31, 2021 or December 31, 2020. The summary of our stock option activity for the years ended December 31, 2021 and 2020 is as follows: 2021 2020 Shares Weighted Average Weighted Average Remaining Contractual Shares Weighted Average Weighted Average Remaining Contractual Options outstanding, beginning of period 345,218 $ 16.83 4.1 355,218 $ 16.63 5.0 Exercised (118,482) 16.21 (10,000) 9.57 Forfeited (2,175) 10.25 — — Options outstanding, end of period 224,561 17.22 3.3 345,218 16.83 4.1 Options exercisable 224,561 $ 17.22 3.3 335,216 $ 16.59 4.0 The aggregate intrinsic value was $5.0 million for both options outstanding and exercisable as of December 31, 2021. The aggregate intrinsic value was $1.4 million for both options outstanding and exercisable as of December 31, 2020. As of December 31, 2021, there was no unrecognized compensation cost related to stock options granted under the Stock Option Plan. The total intrinsic value and cash received from options exercised, including tax benefit, was $2.3 million and $1.9 million, respectively, for the year ended December 31, 2021, $130 thousand and $96 thousand, respectively for the year ended December 31, 2020, and $295 thousand and $232 thousand, respectively, for the year ended December 31, 2019. Share-based compensation expense charged against income was $6 thousand, $45 thousand and $54 thousand for the years ended December 31, 2021, 2020 and 2019, respectively. Restricted Stock Awards A summary of changes in the Company's nonvested shares for the year ended December 31, 2021 is as follows: Nonvested Shares Shares Weighted Average Nonvested at January 1, 2021 93,270 $ 24.75 Granted 55,320 22.68 Vested (26,940) 24.78 Forfeited (8,500) 25.06 Nonvested at December 31, 2021 113,150 $ 23.71 As of December 31, 2021, there was $1.2 million of total unrecognized compensation cost related to nonvested shares granted under the 2018 Plan. The cost is expected to be recognized over a weighted average period of 1.9 years. The total fair value of shares vested during the year ended December 31, 2021 was $668 thousand compared to the fair value of $559 thousand for the year ended December 31, 2020. Total expense for restricted stock awards totaled $811 thousand, $842 thousand and $659 thousand for the years ended December 31, 2021, 2020 and 2019, respectively. For the years ended December 31, 2021, 2020 and 2019 there was $137 thousand, $64 thousand and $43 thousand, respectively, of restricted stock redeemed to cover the payroll taxes due at the time of vesting. A summary of our stock compensation activity and its effects on our outstanding common shares for the years ended December 31, 2021 is as follows. 2021 2020 Balance at Common shares outstanding, beginning of period 7,633,780 7,715,491 Redeemed stock (59,645) (125,798) Exercise of stock options 118,482 10,000 Restricted stock grants 55,320 38,170 Restricted stock withheld for taxes (5,711) (2,683) Cancellation of restricted stock (8,500) (1,400) Balance at Common shares outstanding, end of period 7,733,726 7,633,780

Other Benefit Plans

Other Benefit Plans	12 Months Ended
	Dec. 31, 2021
Retirement Benefits [Abstract]
Other Benefit Plans	OTHER BENEFIT PLANS 401(k) Plan : The Company sponsors a 401(k) plan in which substantially all employees are eligible to participate. The plan is a "safe harbor" plan in accordance with the Internal Revenue Code. In 2020, the Company updated the plan to provide a matching contribution equal to 100% of the first 3% and 50% of the next 2% of employee contributions for each eligible employee. In 2019 and earlier, the plan required the Company to make a 3% non-elective contribution for each eligible employee. Contributions to the plan were approximately $1.1 million, $1.1 million and $690 thousand for the years ended December 31, 2021, 2020 and 2019, respectively. Deferred Compensation Plan : The Company's deferred compensation plan, established in 2015, covers all executive officers. Under the plan, the Company pays each participant, or his or her beneficiary, the amount of contributions deferred into the plan plus adjustments for deemed investment experience. The Company accrues a liability for the obligation under the plan. The expense incurred for deferred compensation was $310 thousand, $350 thousand and $261 thousand for the years ended December 31, 2021, 2020 and 2019, respectively, which resulted in a deferred compensation liability of $1.3 million, $1.0 million and $676 thousand as of December 31, 2021, 2020 and 2019, respectively.

Off- Balance Sheet Activities

Off- Balance Sheet Activities	12 Months Ended
	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Off- Balance Sheet Activities	LOANS The following table presents the recorded investment in loans at December 31, 2021 and December 31, 2020. The recorded investment in loans excludes accrued interest receivable. (Dollars in thousands) Originated Acquired Total December 31, 2021 Commercial real estate $ 644,337 $ 106,427 $ 750,764 Commercial and industrial 420,635 39,895 460,530 Residential real estate 421,226 19,414 440,640 Consumer 771 66 837 Total $ 1,486,969 $ 165,802 $ 1,652,771 December 31, 2020 Commercial real estate $ 587,631 $ 133,201 $ 720,832 Commercial and industrial 629,434 56,070 685,504 Residential real estate 280,645 34,831 315,476 Consumer 748 977 1,725 Total $ 1,498,458 $ 225,079 $ 1,723,537 At December 31, 2021 and December 31, 2020, the Company had residential loans held for sale, which were originated with the intent to sell, totaling $12.9 million and $43.5 million, respectively. During the years ended December 31, 2021 and 2020, the Company sold residential real estate loans with proceeds totaling $482.0 million and $545.6 million, respectively. At December 31, 2021 and December 31, 2020, $76.5 million and $290.1 million, respectively, of PPP loans were included in the commercial and industrial loan balance. The Bank was a participating lender in the Small Business Administration's (“SBA”) Paycheck Protection Program (“PPP”). PPP loans are forgivable, in whole or in part, if the proceeds are used for payroll and other permitted purposes in accordance with the requirements of the PPP. These loans carry a fixed rate of 1.00% and a term of two years (loans made before June 5, 2020) or five years (loans made on or after June 5, 2020), if not forgiven, in whole or in part. Payments are deferred until either the date on which the SBA remits the amount of forgiveness proceeds to the lender or the date that is 10 months after the last day of the covered period if the borrower does not apply for forgiveness within that 10 month period. Fees generated based on the origination of PPP loans are deferred and amortized into interest income over the contractual period of 24 months or 60 months, as applicable. Upon SBA forgiveness, unamortized fees are then recognized into interest income. During 2020 and 2021, the bank originated 3,763 PPP loans with a total originated principal balance of $667.2 million generating net fee income of $20.6 million. Net fee income of $12.9 million and $6.5 million were recognized during the years ended December 31, 2021 and 2020, respectively. As of December 31, 2021, 3,260 of the 3,763 originated loans had been forgiven. Nonperforming Assets Nonperforming assets consist of loans for which the accrual of interest has been discontinued and other real estate owned obtained through foreclosure and other repossessed assets. Loans outside of those accounted for under ASC 310-30 are classified as nonaccrual when, in the opinion of management, it is probable that the Company will be unable to collect all the contractual interest and principal payments as scheduled in the loan agreement. The accrual of interest is discontinued when a loan is placed in nonaccrual status and any payments received reduce the carrying value of the loan. A loan may be placed back on accrual status if all contractual payments have been received and collection of future principal and interest payments is no longer doubtful. Acquired loans that are not performing in accordance with contractual terms are not reported as nonperforming because these loans are recorded at their net realizable value based on the principal and interest the Company expects to collect on these loans. There were $206 thousand and $12 thousand in commitments to lend additional funds to borrowers whose loans were classified as nonaccrual as of December 31, 2021 and December 31, 2020, respectively. Information as to nonperforming assets was as follows: (Dollars in thousands) December 31, 2021 December 31, 2020 Nonaccrual loans: Commercial real estate $ 4,246 $ 7,320 Commercial and industrial 4,208 7,490 Residential real estate 2,819 3,991 Consumer 16 15 Total nonaccrual loans 11,289 18,816 Other real estate owned 201 — Total nonperforming assets $ 11,490 $ 18,816 Loans 90 days or more past due and still accruing $ 162 $ 269 At December 31, 2021 and December 31, 2020, the loans that were 90 days or more past due and still accruing were PCI loans. Loan delinquency as of the dates presented below was as follows: (Dollars in thousands) Current 30 - 59 Days 60 - 89 Days 90+ Days Total December 31, 2021 Commercial real estate $ 750,666 $ 98 $ — $ — $ 750,764 Commercial and industrial 460,419 107 4 — 460,530 Residential real estate 436,009 2,443 851 1,337 440,640 Consumer 821 — 7 9 837 Total $ 1,647,915 $ 2,648 $ 862 $ 1,346 $ 1,652,771 December 31, 2020 Commercial real estate $ 714,196 $ 4,863 $ 1,773 $ — $ 720,832 Commercial and industrial 681,106 893 3,505 — 685,504 Residential real estate 305,800 5,420 1,110 3,146 315,476 Consumer 1,723 — — 2 1,725 Total $ 1,702,825 $ 11,176 $ 6,388 $ 3,148 $ 1,723,537 Impaired Loans: Information as to impaired loans, excluding PCI loans, was as follows: (Dollars in thousands) December 31, 2021 December 31, 2020 Nonaccrual loans $ 11,289 $ 18,816 Performing troubled debt restructurings: Commercial and industrial 334 546 Residential real estate 365 432 Total performing troubled debt restructurings 699 978 Total impaired loans, excluding purchase credit impaired loans $ 11,988 $ 19,794 Troubled Debt Restructurings: The Company assesses loan modifications to determine whether a modification constitutes a troubled debt restructuring ("TDR"). This applies to all loan modifications except for modifications to loans accounted for in pools under ASC 310-30, which are not subject to TDR accounting/classification. For loans excluded from ASC 310-30 accounting, a modification is considered a TDR when a borrower is experiencing financial difficulties and the Company grants a concession to the borrower. For loans accounted for individually under ASC 310-30, a modification is considered a TDR when a borrower is experiencing financial difficulties and the effective yield after the modification is less than the effective yield at the time the loan was acquired or less than the effective yield of any re-estimation of cash flows subsequent to acquisition in association with consideration of qualitative factors included within ASC 310-40. All TDRs are considered impaired loans. The nature and extent of impairment of TDRs, including those which have experienced a subsequent default, are considered in the determination of an appropriate level of allowance for loan losses. The CARES Act was signed into law on March 27, 2020, which provides a variety of provisions, including, among other things, a small business lending program to originate paycheck protection loans, temporary relief for the community bank leverage ratio, and temporary relief for financial institutions related to troubled debt restructurings. On December 27, 2020, the Consolidated Appropriations Act, 2021 was signed into law and extends the relief related to troubled debt restructurings to the earlier of January 1, 2022 or 60 days after the national emergency termination date. As a result of the COVID-19 pandemic, the Company is currently working with borrowers to provide short-term payment modifications. Any short-term modifications made on a good-faith basis in response to the COVID-19 pandemic to borrowers who were current prior to any relief are not considered TDRs based on interagency guidance. This includes short-term modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program was implemented. The Company’s modification programs are designed to provide temporary relief for current borrowers affected by the COVID-19 pandemic. The Company has presumed that borrowers that are current on payments are not experiencing financial difficulties at the time of the modification for purposes of determining TDR status, and thus no further TDR analysis is required for each loan modification in the program. As of December 31, 2021 and December 31, 2020, the Company had a recorded investment in troubled debt restructurings of $4.1 million and $4.8 million, respectively. The Company allocated a specific reserve of $314 thousand for those loans at December 31, 2021 and a specific reserve of $317 thousand for those loans at December 31, 2020. The Company had not committed to lend additional amounts to borrowers whose loans have been modified. As of December 31, 2021, there were $3.4 million of nonperforming TDRs and $699 thousand of performing TDRs included in impaired loans. As of December 31, 2020, there were $3.8 million of nonperforming TDRs and $978 thousand of performing TDRs included in impaired loans. All TDRs are considered impaired loans in the calendar year of their restructuring. A loan that has been modified can return to performing status if it satisfies a six-month performance requirement; however, it will continue to be reported as a TDR and considered impaired. The following table presents the recorded investment of loans modified as TDRs during the years ended December 31, 2020, and 2019 by type of concession granted. There were three loans modified as TDRs during the year ended December 31, 2021 which were subsequently paid off during the third quarter of 2021. In cases where more than one type of concession was granted, the loans were categorized based on the most significant concession. Concession type Financial effects of (Dollars in thousands) Principal Interest Forbearance Total Total Net Provision For the year ended December 31, 2021 Commercial real estate $ — $ — $ — 1 $ — $ — $ — Commercial and industrial — — — 2 — — — Total $ — $ — $ — 3 $ — $ — $ — For the year Ended December 31, 2020 Commercial real estate $ 1,654 $ — $ — 2 $ 1,654 $ — $ — Residential real estate — 74 — 1 74 — — Total $ 1,654 $ 74 $ — 3 $ 1,728 $ — $ — For the year ended December 31, 2019 Commercial and industrial — — 332 2 332 — 174 Total $ — $ — $ 332 2 $ 332 $ — $ 174 On an ongoing basis, the Company monitors the performance of TDRs to their modified terms. The following table presents the number of loans modified as TDRs during the twelve months ended December 31, 2020 and 2019 for which there was a subsequent payment default including the recorded investment as of the period end. There were no loans modified as TDRs during the twelve months ended December 31, 2021 for which there was a subsequent payment default. A payment on a TDR is considered to be in default once it is greater than 30 days past due. For the year ended December 31, 2020 (Dollars in thousands) Total number of Total recorded Provision for loan losses following a Commercial real estate 1 $ 203 $ — Total 1 $ 203 $ — For the year ended December 31, 2019 (Dollars in thousands) Total number of Total recorded Provision for loan losses following a Commercial and industrial 1 $ 42 $ 12 Total 1 $ 42 $ 12 Credit Quality Indicators: 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 Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes commercial and industrial and commercial real estate loans and is performed on an annual basis. The Company uses the following definitions for risk ratings: Pass. Loans classified as pass are higher quality loans that do not fit any of the other categories described below. This category includes loans risk rated with the following ratings: cash/stock secured, excellent credit risk, superior credit risk, good credit risk, satisfactory credit risk, and marginal credit risk. Special Mention. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company's credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Based on the most recent analysis performed, the risk category of loans by class of loans was as follows: (Dollars in thousands) Pass Special Substandard Doubtful Total December 31, 2021 Commercial real estate $ 714,487 $ 25,282 $ 10,518 $ 477 $ 750,764 Commercial and industrial 396,210 48,972 14,348 1,000 460,530 Total $ 1,110,697 $ 74,254 $ 24,866 $ 1,477 $ 1,211,294 December 31, 2020 Commercial real estate $ 685,690 $ 21,570 $ 13,045 $ 527 $ 720,832 Commercial and industrial 637,285 25,727 21,876 616 685,504 Total $ 1,322,975 $ 47,297 $ 34,921 $ 1,143 $ 1,406,336 For residential real estate loans and consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity. Residential real estate loans and consumer loans are considered nonperforming if they are 90 days or more past due. Consumer loan types are continuously monitored for changes in delinquency trends and other asset quality indicators. The following presents residential real estate and consumer loans by credit quality: (Dollars in thousands) Performing Nonperforming Total December 31, 2021 Residential real estate $ 437,821 $ 2,819 $ 440,640 Consumer 821 16 837 Total $ 438,642 $ 2,835 $ 441,477 December 31, 2020 Residential real estate $ 311,485 $ 3,991 $ 315,476 Consumer 1,710 15 1,725 Total $ 313,195 $ 4,006 $ 317,201 Purchased Credit Impaired Loans: As part of the Company's previous five acquisitions, the Company acquired purchase credit impaired ("PCI") loans for which there was evidence of credit quality deterioration since origination, and we determined that it was probable that the Company would be unable to collect all contractually required principal and interest payments. The total balance of all PCI loans from these acquisitions was as follows: (Dollars in thousand) Unpaid Principal Balance Recorded Investment December 31, 2021 Commercial real estate $ 4,353 $ 1,597 Commercial and industrial 235 1 Residential real estate 3,416 2,577 Total PCI loans $ 8,004 $ 4,175 December 31, 2020 Commercial real estate $ 5,109 $ 1,773 Commercial and industrial 643 274 Residential real estate 4,017 2,949 Total PCI loans $ 9,769 $ 4,996 The following table reflects the activity in the accretable yield of PCI loans from past acquisitions, which includes total expected cash flows, including interest, in excess of the recorded investment. For the year ended December 31, (Dollars in thousands) 2021 2020 2019 Accretable yield at beginning of period $ 7,097 $ 9,141 $ 10,947 Additions due to acquisitions — 35 — Accretion of income (1,454) (1,760) (2,313) Adjustments to accretable yield 29 (319) 507 Accretable yield at end of period $ 5,672 $ 7,097 $ 9,141 "Additions due to acquisitions" represents the accretable yield added as a result of the AAB acquisition. "Accretion of income" represents the income earned on these loans for the year. For the years ended December 31, 2021 and 2020, allowance for loan losses on PCI loans decreased by $80 thousand and $95 thousand, respectively. Related Party Loans: We have extended loans to certain of our directors, executive officers, principal shareholders and their affiliates. The aggregate loans outstanding to the directors, executive officers, principal shareholders and their affiliates as of December 31, 2021 and 2020 totaled approximately $1.3 million and $8.9 million, respectively. During 2021 and 2020, there were $684 thousand and $6.6 million, respectively, of new loans and other additions, while repayments and other reductions totaled $8.2 million and $1.8 million, respectively. In the normal course of business, the Company offers a variety of financial instruments with off-balance sheet risk to meet the financing needs of its customers. These financial instruments include outstanding commitments to extend credit, credit lines, commercial letters of credit and standby letters of credit. Commitments to extend credit are agreements to provide credit to a customer, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used and the total commitment amounts do not necessarily represent future cash flow requirements. Standby letters of credit and commercial letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party, while commercial letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and the third party. These financial standby letters of credit irrevocably obligate the Company to pay a third-party beneficiary when a customer fails to repay an outstanding loan or debt instrument. Off-balance sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies used for loans are used to make such commitments, including obtaining collateral at exercise of the commitment. We maintain an allowance to cover probable losses inherent in our financial instruments with off-balance sheet risk. At December 31, 2021, the allowance for off-balance sheet risk was $369 thousand, compared to $490 thousand at December 31, 2020, and was included in "Other liabilities" on our consolidated balance sheets. A summary of the contractual amounts of the Company's exposure to off-balance sheet risk is as follows: December 31, 2021 December 31, 2020 (Dollars in thousands) Fixed Variable Fixed Variable Commitments to make loans $ 13,532 $ 13,531 $ 18,269 $ 17,058 Unused lines of credit 49,841 392,186 28,898 385,307 Unused standby letters of credit and commercial letters of credit 2,145 — 2,340 1,992 Commitments to make loans are generally made for periods of 90 days or less. The fixed rate loan commitments of $13.5 million as of December 31, 2021, had interest rates ranging from 2.89% to 5.25% and maturities ranging from 7 months to 18 years.

Regulatory Capital Matters

Regulatory Capital Matters	12 Months Ended
	Dec. 31, 2021
Regulated Operations [Abstract]
Regulatory Capital Matters	REGULATORY CAPITAL MATTERS Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Management believed that as of December 31, 2021, the Company and Bank met all capital adequacy requirements to which they were subject. The Basel III rules require the Company and the Bank to maintain a capital conservation buffer of common equity Tier 1 capital of 2.5% above the minimum risk-weighted assets ratios. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At December 31, 2021 and December 31, 2020, the Company's and the Bank's capital ratios were in excess of the requirement to be "well capitalized" under regulatory guidelines. There are no conditions or events that management believes have changed the Company or the Bank's category. Actual and required capital amounts and ratios are presented below: Actual For Capital For Capital Adequacy Purposes + Capital Conservation Buffer (1) Well Capitalized Under Prompt Corrective (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2021 Common equity tier 1 to risk-weighted assets: Consolidated $ 175,692 10.37 % $ 76,222 4.50 % $ 118,567 7.00 % Bank 222,202 13.12 % 76,231 4.50 % 118,581 7.00 % $ 110,111 6.50 % Tier 1 capital to risk-weighted assets: Consolidated $ 199,064 11.75 % $ 101,629 6.00 % $ 143,975 8.50 % Bank 222,202 13.12 % 101,641 6.00 % 143,991 8.50 % $ 135,521 8.00 % Total capital to risk-weighted assets: Consolidated $ 249,939 14.76 % $ 135,506 8.00 % $ 177,851 10.50 % Bank 243,384 14.37 % 135,521 8.00 % 177,872 10.50 % $ 169,402 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated $ 199,064 7.93 % $ 100,392 4.00 % $ 100,392 4.00 % Bank 222,202 8.86 % 100,272 4.00 % 100,272 4.00 % $ 125,339 5.00 % December 31, 2020 Common equity tier 1 to risk-weighted assets: Consolidated $ 144,938 9.30 % $ 70,141 4.50 % $ 109,108 7.00 % Bank 185,655 11.94 % 69,950 4.50 % 108,812 7.00 % $ 101,040 6.50 % Tier 1 capital to risk-weighted assets: Consolidated $ 168,310 10.80 % $ 93,521 6.00 % $ 132,488 8.50 % Bank 185,655 11.94 % 93,267 6.00 % 132,129 8.50 % $ 124,356 8.00 % Total capital to risk-weighted assets: Consolidated $ 232,386 14.91 % $ 124,695 8.00 % $ 163,662 10.50 % Bank 205,127 13.20 % 124,356 8.00 % 163,218 10.50 % $ 155,446 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated $ 168,310 6.93 % $ 97,200 4.00 % $ 97,200 4.00 % Bank 185,655 7.67 % 96,809 4.00 % 96,809 4.00 % $ 121,011 5.00 % (1) Reflects the capital conservation buffer of 2.5% for risk-weighted asset ratios.

Fair Value

Fair Value	12 Months Ended
	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Fair Value	FAIR VALUEFair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1—Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2—Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3—Significant unobservable inputs that reflect a company's own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Investment Securities: Securities available for sale are recorded at fair value on a recurring basis as follows: the fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where pricing on similar securities is not available, a third party is engaged to calculate the fair value using the Municipal Market Data curve (Level 3). Loans Held for Sale, at Fair Value: The fair value of loans held for sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). Loans Measured at Fair Value: During the normal course of business, loans originated with the initial intention to sell, but not ultimately sold, are transferred from held for sale to our portfolio of loans held for investment at fair value as the Company adopted the fair value option at origination. The fair value of these loans is determined by obtaining fair value pricing from a third-party software, and then layering an additional adjustment, ranging from 5 to 75 basis points, as determined by management, depending on the reason for the transfer from loans held for sale. Loans are also evaluated for further credit deterioration and additional credit adjustments are applied to the loan as necessary. Due to the adjustments made, the Company classifies the loans transferred from loans held for sale as recurring Level 3. Mortgage Servicing Rights ("MSRs") : In accordance with GAAP, the Company must record impairment charges on mortgage servicing rights on a non-recurring basis when the carrying value exceeds the estimated fair value. The fair value of our MSRs is obtained from a third-party valuation company that uses a discounted cash flow valuation model which calculates the present value of estimated future net servicing cash flows, taking into consideration expected mortgage loan prepayment rates, discount rates, costs to service, contractual servicing fee income, ancillary income, late fees, replacement reserves and other economic factors that are determined based on current market conditions. The reliance on Level 3 inputs to derive at the fair value of MSRs results in a Level 3 classification. Impaired Loans: Impaired loans are measured and recorded at fair value on a non-recurring basis. All of our nonaccrual loans and trouble debt restructured loans are considered impaired and are reviewed individually for the amount of impairment, if any. The fair value of impaired loans is estimated using one of several methods, including the fair value of the collateral or the present value of the expected future cash flows discounted at the loan's effective interest rate. For loans that are collateral dependent, the fair value of each loan’s collateral is generally based on estimated market prices from an independently prepared appraisal. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Non-real estate collateral may be valued using an appraisal, net book value per the borrower's financial statements, or aging reports, adjusted or discounted based on management's historical knowledge, changes in market conditions from the time of the valuation, and management's expertise and knowledge of the client and client's business. Such adjustments are considered unobservable, and the fair value measurement is categorized as a Level 3 measurement. Other Real Estate Owned: Other real estate owned assets are recorded at the lower of cost or fair value upon the transfer of a loan to other real estate owned and, subsequently, continue to be measured and carried at the lower of cost or fair value. The fair value of other real estate owned is based on recent real estate appraisals which are generally updated annually. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales, cost, and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Other real estate owned properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Appraisals for both collateral-dependent impaired loans and real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by either the Company or the Company's appraisal services vendor. Once received, management reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Management monitors the actual selling price of collateral that has been sold to the most recent appraised value to determine what additional adjustment should be made to the appraisal value to arrive at fair value. Derivatives: Customer-initiated derivatives are traded in over-the counter markets where quoted market prices are not readily available. Fair value of customer-initiated derivatives is measured on a recurring basis using valuation models that use market observable inputs (Level 2). Mortgage banking related derivatives including commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are recorded at fair value on a recurring basis. The fair value of these commitments is based on the fair value of related mortgage loans determined using observable market data (Level 2). Interest rate lock commitments are adjusted for expectations of exercise and funding. This adjustment is not considered to be a material input. Assets and liabilities measured at fair value on a recurring basis are summarized below: (Dollars in thousands) Total Quoted Prices Significant Other Significant December 31, 2021 Securities available for sale: U.S. government sponsored entities and agencies $ 21,774 $ — $ 21,774 $ — State and political subdivision 148,276 — 147,406 870 Mortgage-backed securities: residential 22,211 — 22,211 — Mortgage-backed securities: commercial 23,271 — 23,271 — Collateralized mortgage obligations: residential 13,461 — 13,461 — Collateralized mortgage obligations: commercial 51,183 — 51,183 — U.S. Treasury 64,387 — 64,387 — SBA 13,927 — 13,927 — Asset backed securities 9,706 — 9,706 — Corporate bonds 29,355 — 29,355 — Total securities available for sale 397,551 — 396,681 870 Loans held for sale 12,902 — 12,902 — Loans measured at fair value: Residential real estate 10,000 — — 10,000 Derivative assets: Customer-initiated derivatives 5,426 — 5,426 — Forward contracts related to mortgage loans to be delivered for sale 29 — 29 — Interest rate lock commitments 418 — 418 — Total assets at fair value $ 426,326 $ — $ 415,456 $ 10,870 Derivative liabilities: Customer-initiated derivatives 5,426 — 5,426 — Forward contracts related to mortgage loans to be delivered for sale 49 — 49 — Total liabilities at fair value $ 5,475 $ — $ 5,475 $ — (Dollars in thousands) Total Quoted Prices Significant Other Significant December 31, 2020 Securities available for sale: U.S. government sponsored entities and agencies $ 26,358 $ — $ 26,358 $ — State and political subdivision 132,723 — 131,259 1,464 Mortgage-backed securities: residential 26,081 — 26,081 — Mortgage-backed securities: commercial 11,918 — 11,918 — Collateralized mortgage obligations: residential 13,446 — 13,446 — Collateralized mortgage obligations: commercial 58,512 — 58,512 — SBA 17,593 — 17,593 — Asset backed securities 10,072 — 10,072 — Corporate bonds 6,029 — 6,029 — Total securities available for sale $ 302,732 $ — $ 301,268 $ 1,464 Loans held for sale 43,482 — 43,482 — Loans measured at fair value: Residential real estate 8,037 — — 8,037 Derivative assets: Customer-initiated derivatives 12,515 — 12,515 — Forward contracts related to mortgage loans to be delivered for sale 46 — 46 — Interest rate lock commitments 2,194 — 2,194 — Total assets at fair value $ 369,006 $ — $ 359,505 $ 9,501 Derivative liabilities: Customer-initiated derivatives 12,515 — 12,515 — Forward contracts related to mortgage loans to be delivered for sale 423 — 423 — Total liabilities at fair value $ 12,938 $ — $ 12,938 $ — There were no transfers between levels within the fair value hierarchy, within a specific category, during the years ended December 31, 2021 or 2020. The Level 3 investment securities were acquired from Ann Arbor State Bank during the first quarter of 2020. The following table summarizes the changes in Level 3 loans measured at fair value on a recurring basis. For the year ended December 31, (Dollars in thousands) 2021 2020 Loans held for investment Beginning balance $ 8,037 $ 4,063 Transfers from loans held for sale 5,038 5,217 Gains (losses): Recorded in "Mortgage banking activities" (462) 123 Repayments (2,613) (1,366) Ending balance $ 10,000 $ 8,037 There were $98 thousand in loans held for investment measured at fair value that were on nonaccrual status or 90 days past due with a fair value of $93 thousand as of December 31, 2021. There were $105 thousand in loans held for investment measured at fair value that were on nonaccrual status or 90 days past due with a fair value of $109 thousand as of December 31, 2020. The Company has elected the fair value option for loans held for sale. These loans are intended for sale and the Company believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company's policy on loans held for investment. As of December 31, 2021 and December 31, 2020, the aggregate fair value, contractual balance (including accrued interest), and gain or loss for loans held for sale carried at fair value was as follows: (Dollars in thousands) December 31, 2021 December 31, 2020 Aggregate fair value $ 12,902 $ 43,482 Contractual balance 12,527 41,808 Unrealized gain 375 1,674 The total amount of gains as a result of changes in fair value of loans held for sale included in "Mortgage banking activities" for the years ended December 31, 2021, 2020 and 2019 were as follows: For the year ended December 31, (Dollars in thousands) 2021 2020 2019 Change in fair value $ (1,299) $ 1,295 $ 296 Assets measured at fair value on a non-recurring basis are summarized below: (Dollars in thousands) Significant Unobservable Inputs December 31, 2021 Impaired loans: Commercial and industrial $ 272 Residential real estate 488 Mortgage servicing rights 8,279 Other real estate owned 201 Total $ 9,240 December 31, 2020 Impaired loans: Commercial and industrial $ 1,270 Mortgage servicing rights 3,981 Total $ 5,251 The Company recorded specific reserves of $82 thousand and $95 thousand to reduce the value of the impaired loans noted above at December 31, 2021 and December 31, 2020, respectively, based on the estimated fair value of the underlying collateral. The Company also recorded $246 thousand of chargeoffs during the year ended December 31, 2021 related to the impaired loans at fair value. There were chargeoffs of $315 thousand related to impaired loans at fair value during the year ended December 31, 2020. There were no write downs recorded in other real estate owned during the years ended December 31, 2021 or December 31, 2020. The table below presents quantitative information about the significant unobservable inputs for assets measured at fair value on a nonrecurring basis at December 31, 2021 and December 31, 2020: (Dollars in thousands) Fair Value at December 31, 2021 Valuation Significant Discount % Range/Amount Impaired loans $ 760 Discounted appraisals; estimated net realizable value of collateral Collateral discounts 5.00-100.00% Mortgage servicing rights 8,279 Discounted cash flow Prepayment speed 6.28 % Discount rate 8.00 % Other real estate owned 201 Appraisal of property Discounted appraisal value 11.00 % (Dollars in thousands) Fair value at Valuation Significant Discount % Range/Amount Impaired loans $ 1,270 Discounted appraisals; estimated net realizable value of collateral Collateral discounts 10.00-90.00% Mortgage servicing rights 3,981 Discounted cash flow Prepayment speed 8.71 % Discount rate 7.75 % The carrying amounts and estimated fair values of financial instruments, excluding those previously presented unless otherwise noted, at December 31, 2021 and December 31, 2020 are noted in the table below. Estimated Fair Value (Dollars in thousands) Carrying Value Quoted Prices in Significant Significant Total December 31, 2021 Financial assets: Cash and cash equivalents $ 330,146 $ 29,812 $ 300,334 $ — $ 330,146 Other investments 14,398 — — — N/A Net loans 1,631,346 — — 1,648,443 1,648,443 Accrued interest receivable 6,398 — 1,886 4,512 6,398 Financial liabilities: Deposits 2,040,082 — 2,061,670 — 2,061,670 Borrowings 178,682 — 181,306 — 181,306 Subordinated notes 29,694 — 31,314 — 31,314 Accrued interest payable 766 — 766 — 766 December 31, 2020 Financial assets: Cash and cash equivalents $ 264,071 $ 25,245 $ 238,826 $ — $ 264,071 Other investments 14,398 N/A N/A N/A N/A Net loans 1,701,240 — — 1,740,093 1,740,093 Accrued interest receivable 7,511 — 1,460 6,051 7,511 Financial liabilities: Deposits 1,963,312 — 2,022,399 — 2,022,399 Borrowings 185,684 — 192,546 — 192,546 Subordinated notes 44,592 — 45,902 — 45,902 Accrued interest payable 1,081 — 1,081 — 1,081 The methods and assumptions, not previously presented, used to estimate fair value are described as follows: (a) Cash and Cash Equivalents The carrying amounts of cash on hand and non-interest due from bank accounts approximate fair values and are classified as Level 1. The carrying amounts of fed funds sold and interest bearing due from bank accounts approximate fair values and are classified as Level 2. (b) Other Investments It is not practical to determine the fair value of FHLB stock and Arctaris investment bond due to restrictions placed on their transferability. (c) Loans Fair value of loans, excluding loans held for sale, are estimated as follows: Fair values for all loans are estimated using present value of future estimated cash flows, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality, resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described previously. (d) Deposits The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 2 classification. Fair values for fixed and variable rate certificates of deposit are estimated using a present value of future estimated cash flows calculation that applies interest rates currently being offered on certificates of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification . (e) Borrowings The fair values of the Company's short-term and long-term borrowings are estimated using present value of future estimated cash flows using current interest rates offered to the Company for similar types of borrowing arrangements, resulting in a Level 2 classification. (f) Subordinated Notes The fair value of the Company's subordinated notes is calculated based on present value of future estimated cash flows using current interest rates offered to the Company for similar types of borrowing arrangements, resulting in a Level 2 classification. (g) Accrued Interest Receivable/Payable The carrying amounts of accrued interest approximate fair value resulting in a Level 3 classification for receivable and a Level 2 classification for payable, consistent with their associated assets/liabilities.

Derivatives

Derivatives	12 Months Ended
	Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	DERIVATIVES The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. These interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions with approved, reputable, independent counterparties with substantially matching terms. The agreements are considered standalone derivatives, and changes in the fair value of derivatives are reported in earnings as non-interest income. Credit risk arises from the possible inability of counterparties to meet the terms of their contracts. The Company's exposure is limited to the replacement value of the contracts rather than the notional, principal or contract amounts. There are provisions in the agreements with the counterparties that allow for certain unsecured credit exposure up to an agreed threshold. Exposures in excess of the agreed thresholds are collateralized. In addition, the Company minimizes credit risk through credit approvals, limits, and monitoring procedures. Commitments to fund certain mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. It is the Company's practice to enter into forward commitments for the future delivery of residential mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. These mortgage banking derivatives are not designated in hedge relationships. Fair values were estimated based on changes in mortgage interest rates from the date of the commitments. Changes in the fair values of these mortgage-banking derivatives are included in mortgage banking activities. The following table presents the notional amount and fair value of the Company's derivative instruments held or issued in connection with customer initiated and mortgage banking activities: December 31, 2021 December 31, 2020 (Dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Included in other assets: Customer-initiated and mortgage banking derivatives: Customer-initiated derivatives $ 148,862 $ 5,426 $ 136,023 $ 12,515 Forward contracts related to mortgage loans to be delivered for sale 6,199 29 10,191 46 Interest rate lock commitments 35,263 418 91,531 2,194 Total derivatives included in other assets $ 190,324 $ 5,873 $ 237,745 $ 14,755 Included in other liabilities: Customer-initiated and mortgage banking derivatives: Customer-initiated derivatives $ 148,862 $ 5,426 $ 136,023 $ 12,515 Forward contracts related to mortgage loans to be delivered for sale 29,767 49 92,899 423 Interest rate lock commitments 546 — — — Total derivatives included in other liabilities $ 179,175 $ 5,475 $ 228,922 $ 12,938 In the normal course of business, the Company may decide to settle a forward contract rather than fulfill the contract. Cash received or paid in this settlement manner is included in "Mortgage banking activities" in the consolidated statements of income and is considered a cost of executing a forward contract. The following table presents the gains (losses) related to derivative instruments reflecting the changes in fair value: For the year ended December 31, (Dollars in thousands) Location of Gain (Loss) 2021 2020 2019 Forward contracts related to mortgage loans to be delivered for sale Mortgage banking activities $ 1,620 $ (5,011) $ (509) Interest rate lock commitments Mortgage banking activities (1,776) 1,938 58 Total loss recognized in income $ (156) $ (3,073) $ (451) Balance Sheet Offsetting: Certain financial instruments, including customer-initiated derivatives and interest rate swaps, may be eligible for offset in the consolidated balance sheets and/or subject to master netting arrangements or similar agreements. The Company is a party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes based on an accounting policy election. The table below presents information about the Company's financial instruments that are eligible for offset. Gross amounts not offset in the statements of financial position (Dollars in thousands) Gross amounts recognized Gross amounts offset in the statements of financial condition Net amounts presented in the statements of financial condition Financial instruments Collateral (received)/posted Net amount December 31, 2021 Offsetting derivative assets: Customer initiated derivatives $ 5,426 $ — $ 5,426 $ — $ — $ 5,426 Offsetting derivative liabilities: Customer initiated derivatives 5,426 — 5,426 — 10,383 (4,957) December 31, 2020 Offsetting derivative assets: Customer initiated derivatives $ 12,515 $ — $ 12,515 $ — $ — $ 12,515 Offsetting derivative liabilities: Customer initiated derivatives 12,515 — 12,515 — 15,383 (2,868)

Parent Company Financial Statem

Parent Company Financial Statements	12 Months Ended
	Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]
Parent Company Financial Statements	PARENT COMPANY FINANCIAL STATEMENTS Balance Sheets—Parent Company (Dollars in thousands) December 31, 2021 December 31, 2020 Assets Cash and cash equivalents $ 7,442 $ 25,779 Investment in banking subsidiary 263,229 232,671 Investment in captive insurance subsidiary — 1,625 Income tax benefit 59 355 Other assets 46 63 Total assets $ 270,776 $ 260,493 Liabilities Subordinated notes $ 29,694 $ 44,592 Accrued expenses and other liabilities 991 574 Total liabilities 30,685 45,166 Shareholders' equity 240,091 215,327 Total liabilities and shareholders' equity $ 270,776 $ 260,493 Statements of Income and Comprehensive Income—Parent Company For the year ended December 31, (Dollars in thousands) 2021 2020 2019 Income Dividend income from bank subsidiary $ — $ 41,500 $ — Dividend income from captive subsidiary 1,629 815 860 Total income $ 1,629 $ 42,315 $ 860 Expenses Interest on borrowed funds — 40 4 Interest on subordinated notes 1,863 2,537 1,074 Other expenses 1,787 1,238 1,196 Total expenses $ 3,650 $ 3,815 $ 2,274 Income (loss) before income taxes and equity in undistributed net earnings of subsidiaries (2,021) 38,500 (1,414) Income tax expense 909 781 427 Equity in (overdistributed) undistributed earnings of subsidiaries 33,590 (18,868) 17,098 Net income $ 32,478 $ 20,413 $ 16,111 Other comprehensive income (loss) (5,237) 4,590 5,344 Total comprehensive income, net of tax $ 27,241 $ 25,003 $ 21,455 Statements of Cash Flows—Parent Company For the year ended December 31, (Dollars in thousands) 2021 2020 2019 Cash flows from operating activities Net income $ 32,478 $ 20,413 $ 16,111 Adjustments to reconcile net income to net cash provided by operating activities: Equity in over (under) distributed earnings of subsidiaries (33,590) 18,868 (17,098) Stock based compensation expense 100 101 74 Net change in other assets, net 313 201 (205) Net change in other liabilities, net 437 59 257 Net cash (used in) provided by operating activities (262) 39,642 (861) Cash flows from investing activities Cash used in acquisitions — (67,944) — Net cash used in investing activities — (67,944) — Cash flows from financing activities Preferred stock offering, net of issuance costs — 23,372 — Net proceeds from issuance of subordinated debt — — 29,487 Pay down of subordinated debt (15,000) — — Share buyback - redeemed stock (1,364) (2,648) (2,165) Preferred stock dividends paid (1,875) (479) — Common stock dividends paid (1,756) (1,469) (1,160) Proceeds from exercised stock options 1,920 95 219 Net cash (used in) provided by financing activities (18,075) 18,871 26,381 Net increase (decrease) in cash and cash equivalents (18,337) (9,431) 25,520 Beginning cash and cash equivalents 25,779 35,210 9,690 Ending cash and cash equivalents $ 7,442 $ 25,779 $ 35,210

Earnings Per Common Share

Earnings Per Common Share	12 Months Ended
	Dec. 31, 2021
Earnings Per Share [Abstract]
Earnings Per Common Share	EARNINGS PER COMMON SHARE The Company has elected to use the two-class method in calculating earnings per share due to the unvested restricted stock awards qualifying as participating securities. The two-class method is used in the calculation of basic and diluted earnings per common share. Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participating rights in undistributed earnings. Average shares of common stock for diluted net income per common share include shares to be issued upon the exercise of stock options granted under the Company's share-based compensation plans and restricted stock awards. The calculation of basic and diluted earnings per share using the two-class method for the periods noted below was as follows: For the year ended December 31, (In thousands, except per share data) 2021 2020 2019 Net income $ 32,478 $ 20,413 $ 16,111 Preferred stock dividends 1,875 479 — Net income available to common shareholders 30,603 19,934 16,111 Net income allocated to participating securities 441 244 159 Net income allocated to common shareholders (1) $ 30,162 $ 19,690 $ 15,952 Weighted average common shares - issued 7,648 7,723 7,733 Average unvested restricted share awards (112) (96) (78) Weighted average common shares outstanding - basic 7,536 7,627 7,655 Effect of dilutive securities: Weighted average common stock equivalents 114 59 115 Weighted average common shares outstanding - diluted 7,650 7,686 7,770 EPS available to common shareholders Basic earnings per common share $ 4.00 $ 2.58 $ 2.08 Diluted earnings per common share $ 3.95 $ 2.57 $ 2.05 (1) Net income allocated to common shareholders for basic and diluted earnings per share may differ under the two-class method as a result of adding common share equivalents for options to dilutive shares outstanding, which alters the ratio used to allocate net income to common shareholders and participating securities for the purposes of calculating diluted earnings per share.

Quarterly Financial Data (Unaud

Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2021
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Data (Unaudited)	QUARTERLY FINANCIAL DATA (UNAUDITED) The following tables present the unaudited quarterly financial data for the years ended December 31, 2021 and 2020: For the year ended December 31, 2021 (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $ 21,551 $ 21,737 $ 22,322 $ 21,040 Interest expense 2,394 2,121 1,807 1,729 Net interest income 19,157 19,616 20,515 19,311 Provision for (recovery of) loan losses 265 540 (1,189) (341) Net interest income after provision for (recovery of) loan losses 18,892 19,076 21,704 19,652 Noninterest income 7,278 4,326 6,041 4,727 Noninterest expense 15,139 14,588 15,989 16,123 Income before income taxes 11,031 8,814 11,756 8,256 Income tax provision 2,072 1,835 2,291 1,181 Net income 8,959 6,979 9,465 7,075 Preferred stock dividends 469 469 468 469 Net income attributable to common shareholders $ 8,490 $ 6,510 $ 8,997 $ 6,606 Earnings per common share: Basic $ 1.11 $ 0.85 $ 1.19 $ 0.85 Diluted 1.10 0.84 1.16 0.85 Cash dividends declared per common share 0.06 0.06 0.06 0.06 For the year ended December 31, 2020 (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $ 19,817 $ 20,396 $ 20,245 $ 22,181 Interest expense 4,997 4,163 3,648 3,075 Net interest income 14,820 16,233 16,597 19,106 Provision for loan losses 489 5,575 4,270 1,538 Net interest income after provision for loan losses 14,331 10,658 12,327 17,568 Noninterest income 4,690 7,789 9,125 8,110 Noninterest expense 14,562 15,083 15,126 15,461 Income before income taxes 4,459 3,364 6,326 10,217 Income tax provision 349 643 1,117 1,844 Net income 4,110 2,721 5,209 8,373 Preferred stock dividends — — — 479 Net income attributable to common shareholders $ 4,110 $ 2,721 $ 5,209 $ 7,894 Earnings per common share: Basic $ 0.53 $ 0.35 $ 0.68 $ 1.02 Diluted 0.53 0.35 0.67 1.02 Cash dividends declared per common share 0.05 0.05 0.05 0.05

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation: The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and conform to predominant practices within the banking industry. Management of the Company has made a number of estimates and assumptions related to the reporting of assets and liabilities to prepare the consolidated financial statements in conformity with GAAP. Actual results may differ from those estimates. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of the results of operations for annual periods presented herein, have been included. Some items in the prior year financial statements were reclassified to conform to the current presentation. Such items had no impact on net income or shareholder’s equity.
Principles of Consolidation	Principles of Consolidation:The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, the Bank and Hamilton Court, after elimination of significant intercompany transactions and accounts.
Business Combinations	Business Combinations The Company accounts for business combinations under the acquisition method of accounting. Under the acquisition method, tangible and intangible identifiable assets acquired, liabilities assumed and any noncontrolling interests in the acquiree are recorded at fair value as of the acquisition date. The Company includes the results of operations of the acquired companies in the consolidated statements of income from the date of acquisition. Transaction costs and costs to restructure the acquired company are expensed as incurred. Goodwill is recognized as the excess of the acquisition price over the estimated fair value of the net assets acquired. If the fair value of the net assets acquired is greater than the acquisition price, a bargain purchase gain is recognized and recorded in noninterest income.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, which includes amounts on deposit with the Federal Reserve, interest-bearing deposits with banks or other financial institutions and federal funds sold. Generally, federal funds are sold for one‑day periods, but not longer than 30 days.
Investment Securities	Investment Securities Investment securities consist of debt securities of the U.S. Treasury, government sponsored entities, states, counties, municipalities, corporations, agency mortgage-backed securities and non-agency mortgage-backed securities. Securities transactions are recorded on a trade date basis. Securities are classified as available for sale when the Company intends to sell them before maturity. Available-for-sale securities are recorded at fair value. Unrealized gains and losses, net of the related tax effect, on available-for-sale securities are included in other comprehensive income and the related accumulated unrealized holding gains and losses are reported as a separate component of shareholders’ equity until realized. On a quarterly basis, the Company makes an assessment to determine whether there have been any events or circumstances to indicate that a security for which there is an unrealized loss is impaired on an other than temporary basis. This determination requires significant judgment. A decline in the fair value of any available-for-sale security below cost that is deemed other than temporary results in a charge to earnings and the establishment of a new cost basis for the security. In estimating other-than-temporary impairment (“OTTI”) losses, we consider the severity and duration of the impairment; the financial condition and near-term prospects of the issuer, which for debt securities considers external credit ratings and recent downgrades; projected cash flows on covered non-agency mortgage-backed securities; and the intent and ability of the Company to hold the security for a period of time sufficient for a recovery in value. Management evaluates securities for other-than-temporary impairment more frequently when economic or market conditions warrant such an evaluation. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are amortized on the level-yield method. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Also, when applicable, realized gains and losses are reported as a reclassification adjustment, net of tax, in other comprehensive income.
Other Investments	Other Investments The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. The Bank also invests in an equity security that does not have a readily determinable fair value because its
Loans Held for Sale, at Fair Value	Loans Held for Sale Loans held for sale consist of loans originated with the intent to sell. Loans held for sale are carried at fair value, determined individually, as of the balance sheet date. The Company believes the fair value method reflects the economic risks associated with these loans. Fair value measurements on loans held for sale are based on quoted market prices for similar loans in the secondary market, market quotes from anticipated sales contracts and commitments, or contract prices from firm sales commitments. Fair value includes the servicing value of the loans as well as any accrued interest. The changes in the fair value of loans held for sale are reflected in mortgage banking activities on the consolidated statements of income .
Loans Measured at Fair Value	Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unamortized deferred loan fees and costs and net of any purchase premiums and discounts. Interest income is recorded on the accrual basis, in accordance with the terms of the respective loan. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income without anticipating prepayments. Loans are considered delinquent when principal or interest payments are past due 30 days or more; delinquent loans may remain on accrual status between 30 days and 89 days past due. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. Interest income on mortgage and commercial loans is discontinued when principal or interest payments are past due 90 days, unless the loan is well-secured and in process of collection. Consumer loans are typically charged off no later than 120 days past due. When loans are placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Interest received on such loans is accounted for on the cash-basis or cost recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.
Certain Purchased Loans	Certain Purchased Loans The Company purchases individual loans and groups of loans, some of which have shown evidence of credit deterioration since origination. These purchased credit impaired (“PCI”) loans are recorded at the amount paid or at fair value at acquisition in a business combination, such that there is no carryover of the seller’s allowance for loan losses. After acquisition, losses are recognized by an increase in the provision for loan losses. These PCI loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as credit grade, loan type, and date of origination. The Company estimates the amount and timing of expected cash flows for each purchased loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool ( accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, an impairment loss is recognized by establishing an allocation for the loan or pool in the allowance for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized, prospectively, as loan interest income.
Financing Receivable, Allowance for Credit Losses, Policy for Uncollectible Amounts	Allowance for Loan Losses The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Loans over $250 thousand are individually evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings, are classified as impaired, regardless of size, and are measured for impairment based upon the present value of estimated future cash flows using the loan’s effective rate at inception or, if considered collateral dependent, based upon the fair value of the collateral. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. An allowance for loan losses for purchased credit impaired loans is recorded when projected future cash flows decrease. The measurement of impairment on these loans or pools of loans is based upon the excess of the loan or pool’s carrying value over the present value of the projected future cash flows, discounted at the last accounting yield applicable to the loan or pool of loans. The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent 36 months. The historical loss analysis incorporates and fully relies on the Bank’s own historical loss data. The historical loss estimates are established by loan type including commercial and industrial and commercial real estate. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: local and national economic conditions; trends in underwriting standards and lending policies; trends in portfolio volume, maturity and composition (impact of credit concentrations); experience, ability and depth of lending management and staff; trends in delinquencies and nonaccruals; results of independent loan review; change in value for collateral dependent loans; high loan growth; unseasoned bank portfolio; specialized financing; and other factors (legal, regulatory, competition). The following portfolio segments have been identified: Commercial real estate loans are secured by a mortgage lien on the real estate property. Owner-occupied real estate loans generally are considered to carry less risk than non-owner occupied real estate (properties) because the Company considers them to be less sensitive to the condition of the commercial real estate market. Repayment is based on the operations of the business. Investment real estate loans rely on rental income for loan repayment, which involves risk such as rent rollover, tenants going out of business, and competitive properties in the area. Construction and land development loans generally are considered the riskiest class of commercial real estate, due to possible cost overruns, contractor/lien issues, loss of tenant, etc. Risk of loss is managed by adherence to standard loan policies that establish certain levels of performance prior to the extension of a loan to the borrower. Commercial and Industrial loans have varying degrees of risk, but overall are considered to have less risk than commercial real estate. These loans are generally short-term in nature and are almost always backed by collateral. Unsecured commercial loans are supported by strong borrower(s)/guarantor(s) in terms of liquidity, net worth, cash flow, etc. Collateral security of these loans is relatively liquid (i.e., accounts receivable, inventory, equipment) and readily available to cover potential loan loss. Credit risk is managed through standardized loan policies, established and authorized credit limits, portfolio management and the diversification of industries. The PPP loans funded during the second and third quarters of 2020, which are guaranteed by the SBA, are reported within this loan category. Consumer and Residential Real Estate loan portfolios, unlike commercial, tend to be composed of many relatively homogeneous loans. Loan repayment is based on personal cash flow. To assess the risk of a consumer loan request, loan purpose, collateral, debt to income ratio, credit bureau report, and cash flow/employment verification are analyzed. A certain level of security is provided through liens on credits supported by collateral. Economic conditions that affect consumers in the Bank’s market have a direct impact on the credit quality of these loans. Higher levels of unemployment, lower levels of income growth and weaker economic growth are factors that may adversely impact consumer loan credit quality.
Premises and Equipment	Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the life of the asset or the expected term of the lease. We periodically review the carrying value of our long‑lived assets to determine if impairment has occurred or whether changes in circumstances have occurred that would require a revision to the remaining useful life. In making such determination, we evaluate the performance, on an undiscounted basis, of the underlying operations or assets which give rise to such amount.
Other Real Estate Owned	Other Real Estate Owned ("OREO") and Repossessed Assets Other real estate owned and repossessed assets represent properties/assets acquired through acquisition, foreclosure, repossession process or other proceedings, and are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Fair value for OREO is based on an appraisal performed upon foreclosure. Property is evaluated regularly to ensure the recorded amount is supported by its fair value less estimated costs to dispose. After the initial foreclosure appraisal, fair value is generally determined by an annual appraisal unless known events warrant adjustments to the recorded value. Revenue from the operations of OREO is included in other income in the consolidated statements of income, and expense from the operations of OREO and decreases in valuations are included in other expense in the consolidated statements of income.
Goodwill and Core Deposit Intangible	Goodwill and Core Deposit Intangible Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet.
Mortgage Servicing Rights	Mortgage Servicing Rights When loans are sold with servicing retained, the servicing rights are carried at the lower of the initial capitalized amount, net of accumulated amortization, or estimated fair value. The servicing rights are amortized in proportion to and over the period of estimated net servicing income. Servicing rights are evaluated for impairment on a quarterly basis based upon the fair value obtained from an independent third party valuation model requiring the incorporation of assumptions that market participants would use in estimating future net servicing income, which include estimates of prepayment speeds, discount rate, cost to service, contractual servicing fee income, ancillary income, late fees, replacement reserves and other economic factors that are determined based on current market conditions.
Bank-owned Life Insurance	Bank-owned Life InsuranceThe Bank has purchased life insurance policies on certain key executives and senior managers. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.
Derivatives	Derivatives All derivatives are recognized on the consolidated balance sheet as a component of other assets or other liabilities at their fair value. Customer-initiated derivatives refer to the Company utilizing interest rate derivatives to provide a service to certain qualifying customers to help facilitate their respective risk management strategies. Therefore, these derivatives are not used to manage interest rate risk in the Company's assets or liabilities. The Company generally takes offsetting positions with dealer counterparties to mitigate the valuation risk of the customer-initiated derivatives. Income primarily results in the spread between the customer derivatives and offsetting dealer positions. The gains or losses derived from changes in fair value are recognized in current earnings during the period of change in other non-interest income on the consolidated statements of income. At December 31, 2021, the total notional amount of such agreements was $148.9 million and resulted in a derivative asset with a fair value of $5.4 million which was included in other assets and a derivative liability of $5.4 million which was included in other liabilities. Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as freestanding derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. The Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these derivatives are included in mortgage banking activities in the consolidated statements of income.
Secured Borrowings and Transfers of Financial Assets	Secured borrowing Transfers of financial assets that do not qualify for sale accounting are reported as collateralized borrowings. Accordingly, the related assets remain on the Company’s balance sheet and continue to be reported and accounted for as if the transfer had not occurred. Cash proceeds from these transfers are reported as liabilities, with attributable interest expense recognized over the life of the related transactions. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.
Loan Commitments and Related Financial Instruments	Loan Commitments and Related Financial Instruments Financial instruments include off‑balance sheet credit instruments, such as commitments to make loans and standby letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.
Loss Contingencies	Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are any matters at this time that will have a material effect on the consolidated financial statements.
Earnings per Share	Earnings per Share The Company's restricted stock awards that pay non-forfeitable common stock dividends meet the criteria of a participating security. Accordingly, beginning in 2019, earnings per share is calculated using the two-class method under which earnings are allocated to both common shares and participating securities.
Debt Issuance Cost	Debt Issuance CostsCosts associated with the issuance of debt are presented in the consolidated balance sheet as a direct reduction from the carrying value of that debt liability. The deferred issuance costs are amortized over the life the related debt instrument, and included within the debt’s interest expense.
Stock-Based Compensation	Stock-Based Compensation Compensation cost is recognized for stock options and restricted stock awards issued to employees, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards as there is no market or performance metrics that must be met. Compensation cost is recognized over the required service period, generally defined as
Comprehensive Income	Comprehensive Income Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale, net of taxes and reclassifications.
Income Taxes	Income Taxes Income tax expense or benefit is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense.
Dividend Restriction	Dividend Restriction Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the holding company or by the holding company to shareholders. The total amount of dividends which may be paid out at any date is also generally limited to retained earnings.
Operating Segments	Operating SegmentsWhile chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Operating results are not reviewed by senior management to make resource allocation or performance decisions. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment.
Impact of Recently Adopted and Issued Accounting Standards	Impact of Recently Issued Accounting Standards: Leases In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)," to improve transparency and comparability across entities regarding leasing arrangements. This ASU requires the recognition of a separate lease liability representing the required discounted lease payments over the lease term and a separate lease asset representing the right to use the underlying asset during the same lease term. Additionally, this ASU provides clarification regarding the identification of certain components of contracts that would represent a lease as well as requires additional disclosures to the notes of the financial statements. The guidance is effective for the Company for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. In July 2018, the FASB issued ASU 2018-11, "Leases (Topic 842): Targeted Improvements" which provided additional guidance on the transition method, including application as a cumulative effect adjustment to equity and practical expedients to use when account for lease components. The Company adopted this standard as of January 1, 2022, and recorded right of use assets of $9.8 million with a like lease liability, recorded to other assets and liabilities, respectively. Allowance for Credit Losses In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," to replace the current incurred loss methodology for recognizing credit losses, which delays recognition until it is probable a loss has been incurred, with a methodology that reflects an estimate of all expected credit losses and considers additional reasonable and supportable forecasted information when determining credit loss estimates. This impacts the calculation of the allowance for credit losses for all financial assets measured under the amortized cost basis, including PCI loans at the time of and subsequent to acquisition. Additionally, credit losses related to available-for-sale debt securities would be recorded through the allowance for credit losses and not as a direct adjustment to the amortized cost of the securities. The guidance is effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Once adopted, we expect our allowance for loan losses to increase through a one-time adjustment to retained earnings. The Company has reviewed potential methodologies for estimating expected credit losses, segmented the loan portfolio and established an implementation timeline. Our bank's merger with First Merchants Bank will be completed prior to the effective date, and First Merchants will complete the implementation. Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848) : Facilitation of the Effects of Reference Rate Reform on Financial Reporting" to provide guidance to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met and only applies to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. In addition, the ASU provides optional expedients for applying the requirements of certain topics or industry subtopics in the Codification for contracts that are modified because of reference rate reform and contemporaneous modifications of other contract terms related to the replacement of the reference rate. The ASU allows companies to apply the standard as of the beginning of the interim period that includes March 12, 2020 through December 31, 2022. The Company is currently assessing the impact of this guidance to its financial statements; however, the impact is not expected to be material.

Business Combinations (Tables)

Business Combinations (Tables)	12 Months Ended
	Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]
Schedule of Recognized Identifiable Assets Acquired and Liabilities Assumed	The following table summarizes the amounts of assets acquired and liabilities assumed recognized at the acquisition date. (Dollars in thousands) Consideration paid: Cash $ 67,944 Fair value of assets acquired: Cash and cash equivalents 38,480 Investment securities 47,416 Federal Home Loan Bank stock 923 Loans held for sale 1,703 Loans held for investment 222,356 Premises and equipment 2,404 Core deposit intangibles 3,663 Other assets 8,358 Total assets acquired 325,303 Fair value of liabilities assumed: Deposits 264,820 Federal Home Loan Bank advances 15,279 Other liabilities 3,427 Total liabilities assumed 283,526 Total identifiable net assets 41,777 Goodwill recognized in the acquisition $ 26,167
Purchased Loans Accounted for Under and Excluded from ASC 310-30	Purchased loans outside the scope of ASC 310-30 are accounted for under ASC 310-20. Premiums and discounts created when the loans were recorded at their fair values at acquisition are amortized over the remaining terms of the loans as an adjustment to the related loan's yield. (Dollars in thousands) Accounted for under ASC 310-30: Contractual cash flows $ 1,018 Contractual cash flows not expected to be collected (nonaccretable difference) 82 Expected cash flows 936 Interest component of expected cash flows (accretable yield) 35 Fair value at acquisition 901 Accounted for under ASC 310-20: Unpaid principal and interest balance 221,061 Fair value premium 394 Fair value at acquisition 221,455 Total fair value at acquisition $ 222,356
Business Acquisition, Pro Forma Information	The pro forma table below presents information as if the acquisition had occurred on January 1, 2019. The pro forma information includes adjustments to give the effects to any changes in interest income due to the accretion (amortization) of the discount (premium) associated with the fair value adjustments to acquired loans, any changes in interest expense due to estimated premium amortization/discount accretion associated with the fair value adjustments to acquired time deposits and borrowings and other debt, amortization of core deposit intangibles that would have resulted had the deposits been acquired as of January 1, 2019, and the related income tax effects. The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effected on the assumed date . Due diligence, professional fees, and other expenses related to the merger were incurred by the Company and AAB during the year ended December 31, 2020, but the pro forma condensed combined statement of income is not adjusted to exclude these costs. For the year ended December 31, (Dollars in thousands, except per share data) 2020 2019 Net interest income $ 66,796 $ 61,103 Noninterest income 29,714 17,206 Noninterest expense 60,300 53,174 Net income 20,433 17,647 Net income per diluted share 2.57 2.26

Securities (Tables)

Securities (Tables)	12 Months Ended
	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Available-for-sale Securities	The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at December 31, 2021 and December 31, 2020 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income. (Dollars in thousands) Amortized Gross Gross Fair December 31, 2021 U.S. government sponsored entities & agencies $ 22,522 $ 21 $ (769) $ 21,774 State and political subdivision 141,751 6,972 (447) 148,276 Mortgage-backed securities: residential 22,316 97 (202) 22,211 Mortgage-backed securities: commercial 23,411 341 (481) 23,271 Collateralized mortgage obligations: residential 13,557 45 (141) 13,461 Collateralized mortgage obligations: commercial 51,882 444 (1,143) 51,183 U.S. Treasury 65,098 62 (773) 64,387 SBA 13,851 137 (61) 13,927 Asset backed securities 9,762 9 (65) 9,706 Corporate bonds 29,673 43 (361) 29,355 Total available-for-sale $ 393,823 $ 8,171 $ (4,443) $ 397,551 December 31, 2020 U.S. government sponsored entities & agencies $ 26,575 $ 103 $ (320) $ 26,358 State and political subdivision 124,053 8,751 (81) 132,723 Mortgage-backed securities: residential 25,729 352 — 26,081 Mortgage-backed securities: commercial 11,434 484 — 11,918 Collateralized mortgage obligations: residential 13,320 138 (12) 13,446 Collateralized mortgage obligations: commercial 57,398 1,206 (92) 58,512 SBA 17,639 61 (107) 17,593 Asset backed securities 10,229 — (157) 10,072 Corporate bonds 5,998 34 (3) 6,029 Total available-for-sale $ 292,375 $ 11,129 $ (772) $ 302,732
Proceeds from Sales of Securities and Associated Gains and Losses	The proceeds from sales and calls of securities and the associated gains and losses for the periods below were as follows: (Dollars in thousands) For the year ended December 31, 2021 2020 2019 Proceeds $ 1,657 $ 47,849 $ 70,856 Gross gains 21 1,871 1,566 Gross losses — (9) (392)
Securities by Contractual Maturity	The amortized cost and fair value of securities are shown in the table below by contractual maturity. Expected maturities may differ from contractual maturities as issuers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2021 (Dollars in thousands) Amortized Fair Within one year $ 6,111 $ 6,151 One to five years 58,487 58,533 Five to ten years 190,549 190,429 Beyond ten years 138,676 142,438 Total $ 393,823 $ 397,551
Securities with Unrealized Losses	The following table summarizes securities with unrealized losses at December 31, 2021 and December 31, 2020 aggregated by security type and length of time in a continuous unrealized loss position: Less than 12 Months 12 Months or Longer Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2021 Available-for-sale U.S. government sponsored entities & agencies $ — $ — $ 19,231 $ (769) $ 19,231 $ (769) State and political subdivision 26,710 (364) 5,259 (83) 31,969 (447) Mortgage-backed securities: residential 16,854 (202) 8 — 16,862 (202) Mortgage-backed securities: commercial 12,621 (337) 3,431 (144) 16,052 (481) Collateralized mortgage obligations: residential 10,713 (131) 885 (10) 11,598 (141) Collateralized mortgage obligations: commercial 16,966 (567) 13,238 (576) 30,204 (1,143) U.S. Treasury 54,671 (773) — — 54,671 (773) SBA — — 5,183 (61) 5,183 (61) Asset backed securities 4,703 (10) 2,411 (55) 7,114 (65) Corporate bonds 21,871 (283) 2,422 (78) 24,293 (361) Total available-for-sale $ 165,109 $ (2,667) $ 52,068 $ (1,776) $ 217,177 $ (4,443) December 31, 2020 Available-for-sale U.S. government sponsored entities & agencies $ 19,680 $ (320) $ — $ — $ 19,680 $ (320) State and political subdivision 4,880 (81) — — 4,880 (81) Collateralized mortgage obligations: residential — — 1,109 (12) 1,109 (12) Collateralized mortgage obligations: commercial 26,477 (92) — — 26,477 (92) SBA — — 12,209 (107) 12,209 (107) Asset backed securities — — 10,072 (157) 10,072 (157) Corporate bonds 2,497 (3) — — 2,497 (3) Total available-for-sale $ 53,534 $ (496) $ 23,390 $ (276) $ 76,924 $ (772)

Loans (Tables)

Loans (Tables)	12 Months Ended
	Dec. 31, 2021
Receivables [Abstract]
Schedule of Recorded Investment in Loans	The following table presents the recorded investment in loans at December 31, 2021 and December 31, 2020. The recorded investment in loans excludes accrued interest receivable. (Dollars in thousands) Originated Acquired Total December 31, 2021 Commercial real estate $ 644,337 $ 106,427 $ 750,764 Commercial and industrial 420,635 39,895 460,530 Residential real estate 421,226 19,414 440,640 Consumer 771 66 837 Total $ 1,486,969 $ 165,802 $ 1,652,771 December 31, 2020 Commercial real estate $ 587,631 $ 133,201 $ 720,832 Commercial and industrial 629,434 56,070 685,504 Residential real estate 280,645 34,831 315,476 Consumer 748 977 1,725 Total $ 1,498,458 $ 225,079 $ 1,723,537
Information as to Nonperforming Assets	Information as to nonperforming assets was as follows: (Dollars in thousands) December 31, 2021 December 31, 2020 Nonaccrual loans: Commercial real estate $ 4,246 $ 7,320 Commercial and industrial 4,208 7,490 Residential real estate 2,819 3,991 Consumer 16 15 Total nonaccrual loans 11,289 18,816 Other real estate owned 201 — Total nonperforming assets $ 11,490 $ 18,816 Loans 90 days or more past due and still accruing $ 162 $ 269
Summary of Loan Delinquency	Loan delinquency as of the dates presented below was as follows: (Dollars in thousands) Current 30 - 59 Days 60 - 89 Days 90+ Days Total December 31, 2021 Commercial real estate $ 750,666 $ 98 $ — $ — $ 750,764 Commercial and industrial 460,419 107 4 — 460,530 Residential real estate 436,009 2,443 851 1,337 440,640 Consumer 821 — 7 9 837 Total $ 1,647,915 $ 2,648 $ 862 $ 1,346 $ 1,652,771 December 31, 2020 Commercial real estate $ 714,196 $ 4,863 $ 1,773 $ — $ 720,832 Commercial and industrial 681,106 893 3,505 — 685,504 Residential real estate 305,800 5,420 1,110 3,146 315,476 Consumer 1,723 — — 2 1,725 Total $ 1,702,825 $ 11,176 $ 6,388 $ 3,148 $ 1,723,537
Information as to Impaired Loans	Information as to impaired loans, excluding PCI loans, was as follows: (Dollars in thousands) December 31, 2021 December 31, 2020 Nonaccrual loans $ 11,289 $ 18,816 Performing troubled debt restructurings: Commercial and industrial 334 546 Residential real estate 365 432 Total performing troubled debt restructurings 699 978 Total impaired loans, excluding purchase credit impaired loans $ 11,988 $ 19,794 (Dollars in thousand) Unpaid Principal Balance Recorded Investment December 31, 2021 Commercial real estate $ 4,353 $ 1,597 Commercial and industrial 235 1 Residential real estate 3,416 2,577 Total PCI loans $ 8,004 $ 4,175 December 31, 2020 Commercial real estate $ 5,109 $ 1,773 Commercial and industrial 643 274 Residential real estate 4,017 2,949 Total PCI loans $ 9,769 $ 4,996 Loans individually evaluated for impairment are presented below. (Dollars in thousands) Recorded investment with Recorded investment Total Contractual Related December 31, 2021 Individually evaluated impaired loans: Commercial real estate $ 4,246 $ — $ 4,246 $ 4,636 $ — Commercial and industrial 3,854 688 4,542 5,223 292 Residential real estate 802 136 938 1,264 29 Total $ 8,902 $ 824 $ 9,726 $ 11,123 $ 321 December 31, 2020 Individually evaluated impaired loans: Commercial real estate $ 7,320 $ — $ 7,320 $ 7,720 $ — Commercial and industrial 7,964 630 8,594 9,208 307 Residential real estate 2,153 192 2,345 2,447 25 Total $ 17,437 $ 822 $ 18,259 $ 19,375 $ 332 (Dollars in thousands) Average Interest Cash Basis For the year ended December 31, 2021 Individually evaluated impaired loans: Commercial real estate $ 5,018 $ — $ 345 Commercial and industrial 6,008 27 237 Residential real estate 1,287 22 10 Total $ 12,313 $ 49 $ 592 For the year ended December 31, 2020 Individually evaluated impaired loans: Commercial real estate $ 7,981 $ — $ 10 Commercial and industrial 14,008 46 87 Residential real estate 3,304 36 55 Total $ 25,293 $ 82 $ 152 For the year ended December 31, 2019 Individually evaluated impaired loans: Commercial real estate $ 4,233 $ 2 $ 209 Commercial and industrial 8,514 43 573 Residential real estate 1,904 29 9 Total $ 14,651 $ 74 $ 791
Summary of Recorded Investment of Loans Modified in TDRs	The following table presents the recorded investment of loans modified as TDRs during the years ended December 31, 2020, and 2019 by type of concession granted. There were three loans modified as TDRs during the year ended December 31, 2021 which were subsequently paid off during the third quarter of 2021. In cases where more than one type of concession was granted, the loans were categorized based on the most significant concession. Concession type Financial effects of (Dollars in thousands) Principal Interest Forbearance Total Total Net Provision For the year ended December 31, 2021 Commercial real estate $ — $ — $ — 1 $ — $ — $ — Commercial and industrial — — — 2 — — — Total $ — $ — $ — 3 $ — $ — $ — For the year Ended December 31, 2020 Commercial real estate $ 1,654 $ — $ — 2 $ 1,654 $ — $ — Residential real estate — 74 — 1 74 — — Total $ 1,654 $ 74 $ — 3 $ 1,728 $ — $ — For the year ended December 31, 2019 Commercial and industrial — — 332 2 332 — 174 Total $ — $ — $ 332 2 $ 332 $ — $ 174 For the year ended December 31, 2020 (Dollars in thousands) Total number of Total recorded Provision for loan losses following a Commercial real estate 1 $ 203 $ — Total 1 $ 203 $ — For the year ended December 31, 2019 (Dollars in thousands) Total number of Total recorded Provision for loan losses following a Commercial and industrial 1 $ 42 $ 12 Total 1 $ 42 $ 12
Risk Category of Loans by Class of Loans	Based on the most recent analysis performed, the risk category of loans by class of loans was as follows: (Dollars in thousands) Pass Special Substandard Doubtful Total December 31, 2021 Commercial real estate $ 714,487 $ 25,282 $ 10,518 $ 477 $ 750,764 Commercial and industrial 396,210 48,972 14,348 1,000 460,530 Total $ 1,110,697 $ 74,254 $ 24,866 $ 1,477 $ 1,211,294 December 31, 2020 Commercial real estate $ 685,690 $ 21,570 $ 13,045 $ 527 $ 720,832 Commercial and industrial 637,285 25,727 21,876 616 685,504 Total $ 1,322,975 $ 47,297 $ 34,921 $ 1,143 $ 1,406,336 (Dollars in thousands) Performing Nonperforming Total December 31, 2021 Residential real estate $ 437,821 $ 2,819 $ 440,640 Consumer 821 16 837 Total $ 438,642 $ 2,835 $ 441,477 December 31, 2020 Residential real estate $ 311,485 $ 3,991 $ 315,476 Consumer 1,710 15 1,725 Total $ 313,195 $ 4,006 $ 317,201
Total Balance of PCI Loans and Activity in Accretable Yield	The following table reflects the activity in the accretable yield of PCI loans from past acquisitions, which includes total expected cash flows, including interest, in excess of the recorded investment. For the year ended December 31, (Dollars in thousands) 2021 2020 2019 Accretable yield at beginning of period $ 7,097 $ 9,141 $ 10,947 Additions due to acquisitions — 35 — Accretion of income (1,454) (1,760) (2,313) Adjustments to accretable yield 29 (319) 507 Accretable yield at end of period $ 5,672 $ 7,097 $ 9,141

Allowance for Loan Losses (Tabl

Allowance for Loan Losses (Tables)	12 Months Ended
	Dec. 31, 2021
Receivables [Abstract]
Information as to Impaired Loans, including PCI Loans	Information as to impaired loans, excluding PCI loans, was as follows: (Dollars in thousands) December 31, 2021 December 31, 2020 Nonaccrual loans $ 11,289 $ 18,816 Performing troubled debt restructurings: Commercial and industrial 334 546 Residential real estate 365 432 Total performing troubled debt restructurings 699 978 Total impaired loans, excluding purchase credit impaired loans $ 11,988 $ 19,794 (Dollars in thousand) Unpaid Principal Balance Recorded Investment December 31, 2021 Commercial real estate $ 4,353 $ 1,597 Commercial and industrial 235 1 Residential real estate 3,416 2,577 Total PCI loans $ 8,004 $ 4,175 December 31, 2020 Commercial real estate $ 5,109 $ 1,773 Commercial and industrial 643 274 Residential real estate 4,017 2,949 Total PCI loans $ 9,769 $ 4,996 Loans individually evaluated for impairment are presented below. (Dollars in thousands) Recorded investment with Recorded investment Total Contractual Related December 31, 2021 Individually evaluated impaired loans: Commercial real estate $ 4,246 $ — $ 4,246 $ 4,636 $ — Commercial and industrial 3,854 688 4,542 5,223 292 Residential real estate 802 136 938 1,264 29 Total $ 8,902 $ 824 $ 9,726 $ 11,123 $ 321 December 31, 2020 Individually evaluated impaired loans: Commercial real estate $ 7,320 $ — $ 7,320 $ 7,720 $ — Commercial and industrial 7,964 630 8,594 9,208 307 Residential real estate 2,153 192 2,345 2,447 25 Total $ 17,437 $ 822 $ 18,259 $ 19,375 $ 332 (Dollars in thousands) Average Interest Cash Basis For the year ended December 31, 2021 Individually evaluated impaired loans: Commercial real estate $ 5,018 $ — $ 345 Commercial and industrial 6,008 27 237 Residential real estate 1,287 22 10 Total $ 12,313 $ 49 $ 592 For the year ended December 31, 2020 Individually evaluated impaired loans: Commercial real estate $ 7,981 $ — $ 10 Commercial and industrial 14,008 46 87 Residential real estate 3,304 36 55 Total $ 25,293 $ 82 $ 152 For the year ended December 31, 2019 Individually evaluated impaired loans: Commercial real estate $ 4,233 $ 2 $ 209 Commercial and industrial 8,514 43 573 Residential real estate 1,904 29 9 Total $ 14,651 $ 74 $ 791
Activity in the Allowance for Loan Losses and Allocation of the Allowance for Loans	Activity in the allowance for loan losses is presented below: (Dollars in thousands) Commercial Commercial Residential Consumer Total For the year ended December 31, 2021 Allowance for loan losses: Beginning balance $ 9,975 $ 8,786 $ 3,527 $ 9 $ 22,297 Provision for (recovery of) loan losses (520) (1,009) 795 9 (725) Gross chargeoffs — (31) (242) (33) (306) Recoveries — 53 86 20 159 Net (chargeoffs) recoveries — 22 (156) (13) (147) Ending allowance for loan losses $ 9,455 $ 7,799 $ 4,166 $ 5 $ 21,425 For the year ended December 31, 2020 Allowance for loan losses: Beginning balance $ 5,773 $ 5,515 $ 1,384 $ 2 $ 12,674 Provision for loan losses 4,190 5,302 2,343 37 11,872 Gross chargeoffs — (2,118) (285) (58) (2,461) Recoveries 12 87 85 28 212 Net (chargeoffs) recoveries 12 (2,031) (200) (30) (2,249) Ending Allowance for loan losses $ 9,975 $ 8,786 $ 3,527 $ 9 $ 22,297 For the year ended December 31, 2019 Allowance for loan losses: Beginning balance $ 5,227 $ 5,174 $ 1,164 $ 1 $ 11,566 Provision for loan losses 632 533 143 75 1,383 Gross chargeoffs (92) (438) — (106) (636) Recoveries 6 246 77 32 361 Net (chargeoffs) recoveries (86) (192) 77 (74) (275) Ending Allowance for loan losses $ 5,773 $ 5,515 $ 1,384 $ 2 $ 12,674 Allocation of the allowance for loan losses is presented below: (Dollars in thousands) Commercial Commercial Residential Consumer Total December 31, 2021 Allowance for loan losses: Individually evaluated for impairment $ — $ 292 $ 29 $ — $ 321 Collectively evaluated for impairment 9,088 7,506 3,917 5 20,516 Acquired with deteriorated credit quality 367 1 220 — 588 Ending allowance for loan losses $ 9,455 $ 7,799 $ 4,166 $ 5 $ 21,425 Balance of loans: Individually evaluated for impairment $ 4,246 $ 4,542 $ 938 $ — $ 9,726 Collectively evaluated for impairment 744,921 455,987 437,125 837 1,638,870 Acquired with deteriorated credit quality 1,597 1 2,577 — 4,175 Total loans $ 750,764 $ 460,530 $ 440,640 $ 837 $ 1,652,771 December 31, 2020 Allowance for loan losses: Individually evaluated for impairment $ — $ 307 $ 25 $ — $ 332 Collectively evaluated for impairment 9,550 8,465 3,273 9 21,297 Acquired with deteriorated credit quality 425 14 229 — 668 Ending allowance for loan losses $ 9,975 $ 8,786 $ 3,527 $ 9 $ 22,297 Balance of loans: Individually evaluated for impairment $ 7,320 $ 8,594 $ 2,345 $ — $ 18,259 Collectively evaluated for impairment 711,739 676,636 310,182 1,725 1,700,282 Acquired with deteriorated credit quality 1,773 274 2,949 — 4,996 Total loans $ 720,832 $ 685,504 $ 315,476 $ 1,725 $ 1,723,537

Premises and Equipment (Tables)

Premises and Equipment (Tables)	12 Months Ended
	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Schedule of Premises and Equipment	Premises and equipment were as follows at December 31, 2021 and December 31, 2020: (Dollars in thousands) December 31, 2021 December 31, 2020 Land and land improvements $ 3,572 $ 3,514 Buildings 10,710 10,656 Leasehold improvements 3,027 3,017 Furniture, fixtures and equipment 8,254 7,786 Total premises and equipment $ 25,563 $ 24,973 Less: Accumulated depreciation 10,660 9,139 Net premises and equipment $ 14,903 $ 15,834
Lessee, Operating Lease, Liability, Maturity	Rent commitments under non-cancelable operating leases (including renewal options that the Company will likely exercise) were as follows: (Dollars in thousands) As of December 31, 2021 2022 $ 1,833 2023 1,792 2024 1,393 2025 1,268 2026 1,123 Thereafter 3,110 Total lease commitments $ 10,519

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Core Deposit Intangibles	The table below presents the Company's net carrying amount of CDIs: (Dollars in thousands) December 31, 2021 December 31, 2020 Gross carrying amount $ 5,708 $ 5,708 Accumulated amortization (3,180) (2,512) Net Intangible $ 2,528 $ 3,196
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	As of December 31, 2021, estimated amortization expense for each of the next five years is as follows: (Dollars in thousands) 2022 $ 586 2023 506 2024 425 2025 344 2026 268

Mortgage Servicing Rights, Net

Mortgage Servicing Rights, Net (Tables)	12 Months Ended
	Dec. 31, 2021
Mortgage Banking [Abstract]
Qualitative and Quantitative Information, Transferor's Continuing Involvement	The unpaid principal balances of these loans at December 31, 2021 and December 31, 2020 were as follows: (Dollars in thousands) December 31, 2021 December 31, 2020 Residential real estate mortgage loan portfolios serviced for: FNMA $ 601,952 $ 320,467
Servicing Asset at Amortized Cost	Activity for mortgage servicing rights was as follows for the years ended December 31, 2021, 2020 and 2019: For the year ended December 31, (Dollars in thousands) 2021 2020 2019 Mortgage servicing rights: Balance, beginning of period $ 3,361 $ 76 $ — Originated servicing 3,715 3,540 77 Amortization (1,472) (255) (1) Balance, end of period $ 5,604 $ 3,361 $ 76

Deposits (Tables)

Deposits (Tables)	12 Months Ended
	Dec. 31, 2021
Banking and Thrift, Other Disclosures [Abstract]
Scheduled Maturities of Total Time Deposits	As of December 31, 2021, the scheduled maturities of total time deposits were as follows: (Dollars in thousands) December 31, 2021 Due in 2022 $ 359,707 Due in 2023 49,466 Due in 2024 14,570 Due in 2025 1,778 Due in 2026 280 Total $ 425,801

Borrowings and Subordinated D_2

Borrowings and Subordinated Debt (Tables)	12 Months Ended
	Dec. 31, 2021
Debt Disclosure [Abstract]
Components of Long-term Debt and Short-term Borrowings	The following table presents the components of our short-term borrowings and long-term debt. December 31, 2021 December 31, 2020 (Dollars in thousands) Amount Weighted (1) Amount Weighted (1) Short-term borrowings: Securities sold under agreements to repurchase $ 2,342 0.25 % $ 3,204 0.30 % Total short-term borrowings 2,342 0.25 3,204 0.30 Long-term debt: Secured borrowing due in 2022 1,254 1.00 1,304 1.00 FHLB advances due in 2022 to 2029 (2) 175,086 1.03 181,176 1.09 Subordinated notes due in 2025 and 2029 (3) 29,694 4.75 44,592 5.29 Total long-term debt 206,034 1.57 227,072 1.91 Total short-term and long-term borrowings $ 208,376 1.56 % $ 230,276 1.89 % (1) Weighted average rate presented is the contractual rate which excludes premiums and discounts related to purchase accounting. (2) At December 31, 2021, the long-term FHLB advances consisted of 0.42% - 2.93% fixed rate notes and can be called through 2024 without penalty by the issuer. The December 31, 2021 balance includes FHLB advances of $175.0 million and purchase accounting premiums of $86 thousand. The December 31, 2020 balance includes FHLB advances of $181.0 million and purchase accounting premiums of $176 thousand.
Schedule of Maturities of Long-term Debt	The following table presents long-term borrowings by contractual maturity date: (Dollars in thousands) As of December 31, 2021 2022 $ 11,254 2023 3,039 2024 30,000 2025 2,047 2026 — Thereafter 159,694 Total long-term borrowings $ 206,034

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	The current and deferred components of the provision for income taxes were as follows: For the year ended December 31, (Dollars in thousands) 2021 2020 2019 Current expense $ 5,965 $ 7,268 $ 3,995 Deferred expense (benefit) 1,414 (3,315) (592) Total $ 7,379 $ 3,953 $ 3,403
Reconciliation of Expected Income Tax Expense	A reconciliation of expected income tax expense using the federal statutory rate of 21% as of December 31, 2021, 2020 and 2019 and actual income tax expense is as follows: For the year ended December 31, (Dollars in thousands) 2021 2020 2019 Income tax expense based on federal corporate tax rate $ 8,370 $ 5,117 $ 4,098 Changes resulting from: Tax-exempt income (634) (589) (538) Captive insurance benefit (1) (156) (182) Net operating loss carryback due to CARES Act — (290) — Disqualified dispositions from stock options (4) (178) (13) Other, net (352) 49 38 Income tax expense $ 7,379 $ 3,953 $ 3,403
Schedule of Deferred Tax Assets and Liabilities	The tax effects of temporary differences that resulted in the significant components of deferred tax assets and liabilities at December 31, 2021 and 2020 are as follows: For the years ended December 31, (Dollars in thousands) 2021 2020 Deferred tax assets: Allowance for loan losses $ 4,499 $ 4,682 Net operating loss — 757 Deferred compensation 280 215 Restricted stock awards 320 290 Stock options 91 126 Deferred loan fees 700 1,403 Nonaccrued interest 173 215 Accrued expenses 395 370 Other 35 63 Total gross deferred tax assets 6,493 8,121 Deferred tax liabilities: Unrealized gain—available for sale securities (783) (2,175) Depreciation (831) (914) Prepaid expenses (215) (212) Business combination adjustments (969) (1,080) Partnership investments (362) (381) Other (43) (47) Total gross deferred tax liabilities (3,203) (4,809) Net deferred tax assets $ 3,290 $ 3,312

Stock Based Compensation (Table

Stock Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2021
Share-based Payment Arrangement [Abstract]
Summary of Employee Stock Option Activity	The summary of our stock option activity for the years ended December 31, 2021 and 2020 is as follows: 2021 2020 Shares Weighted Average Weighted Average Remaining Contractual Shares Weighted Average Weighted Average Remaining Contractual Options outstanding, beginning of period 345,218 $ 16.83 4.1 355,218 $ 16.63 5.0 Exercised (118,482) 16.21 (10,000) 9.57 Forfeited (2,175) 10.25 — — Options outstanding, end of period 224,561 17.22 3.3 345,218 16.83 4.1 Options exercisable 224,561 $ 17.22 3.3 335,216 $ 16.59 4.0
Summary of Changes in Nonvested Shares	A summary of changes in the Company's nonvested shares for the year ended December 31, 2021 is as follows: Nonvested Shares Shares Weighted Average Nonvested at January 1, 2021 93,270 $ 24.75 Granted 55,320 22.68 Vested (26,940) 24.78 Forfeited (8,500) 25.06 Nonvested at December 31, 2021 113,150 $ 23.71
Summary of Stock Compensation Activity and Effects on Outstanding Common Shares	A summary of our stock compensation activity and its effects on our outstanding common shares for the years ended December 31, 2021 is as follows. 2021 2020 Balance at Common shares outstanding, beginning of period 7,633,780 7,715,491 Redeemed stock (59,645) (125,798) Exercise of stock options 118,482 10,000 Restricted stock grants 55,320 38,170 Restricted stock withheld for taxes (5,711) (2,683) Cancellation of restricted stock (8,500) (1,400) Balance at Common shares outstanding, end of period 7,733,726 7,633,780

Off- Balance Sheet Activities (

Off- Balance Sheet Activities (Tables)	12 Months Ended
	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Exposure to Off-balance Sheet Risk	A summary of the contractual amounts of the Company's exposure to off-balance sheet risk is as follows: December 31, 2021 December 31, 2020 (Dollars in thousands) Fixed Variable Fixed Variable Commitments to make loans $ 13,532 $ 13,531 $ 18,269 $ 17,058 Unused lines of credit 49,841 392,186 28,898 385,307 Unused standby letters of credit and commercial letters of credit 2,145 — 2,340 1,992

Regulatory Capital Matters (Tab

Regulatory Capital Matters (Tables)	12 Months Ended
	Dec. 31, 2021
Regulated Operations [Abstract]
Schedule of actual and required capital amounts and ratios	Actual and required capital amounts and ratios are presented below: Actual For Capital For Capital Adequacy Purposes + Capital Conservation Buffer (1) Well Capitalized Under Prompt Corrective (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2021 Common equity tier 1 to risk-weighted assets: Consolidated $ 175,692 10.37 % $ 76,222 4.50 % $ 118,567 7.00 % Bank 222,202 13.12 % 76,231 4.50 % 118,581 7.00 % $ 110,111 6.50 % Tier 1 capital to risk-weighted assets: Consolidated $ 199,064 11.75 % $ 101,629 6.00 % $ 143,975 8.50 % Bank 222,202 13.12 % 101,641 6.00 % 143,991 8.50 % $ 135,521 8.00 % Total capital to risk-weighted assets: Consolidated $ 249,939 14.76 % $ 135,506 8.00 % $ 177,851 10.50 % Bank 243,384 14.37 % 135,521 8.00 % 177,872 10.50 % $ 169,402 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated $ 199,064 7.93 % $ 100,392 4.00 % $ 100,392 4.00 % Bank 222,202 8.86 % 100,272 4.00 % 100,272 4.00 % $ 125,339 5.00 % December 31, 2020 Common equity tier 1 to risk-weighted assets: Consolidated $ 144,938 9.30 % $ 70,141 4.50 % $ 109,108 7.00 % Bank 185,655 11.94 % 69,950 4.50 % 108,812 7.00 % $ 101,040 6.50 % Tier 1 capital to risk-weighted assets: Consolidated $ 168,310 10.80 % $ 93,521 6.00 % $ 132,488 8.50 % Bank 185,655 11.94 % 93,267 6.00 % 132,129 8.50 % $ 124,356 8.00 % Total capital to risk-weighted assets: Consolidated $ 232,386 14.91 % $ 124,695 8.00 % $ 163,662 10.50 % Bank 205,127 13.20 % 124,356 8.00 % 163,218 10.50 % $ 155,446 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated $ 168,310 6.93 % $ 97,200 4.00 % $ 97,200 4.00 % Bank 185,655 7.67 % 96,809 4.00 % 96,809 4.00 % $ 121,011 5.00 % (1) Reflects the capital conservation buffer of 2.5% for risk-weighted asset ratios.

Fair Value (Tables)

Fair Value (Tables)	12 Months Ended
	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Assets and Liabilities Measured at Fair Value on a Recurring Basis	Assets and liabilities measured at fair value on a recurring basis are summarized below: (Dollars in thousands) Total Quoted Prices Significant Other Significant December 31, 2021 Securities available for sale: U.S. government sponsored entities and agencies $ 21,774 $ — $ 21,774 $ — State and political subdivision 148,276 — 147,406 870 Mortgage-backed securities: residential 22,211 — 22,211 — Mortgage-backed securities: commercial 23,271 — 23,271 — Collateralized mortgage obligations: residential 13,461 — 13,461 — Collateralized mortgage obligations: commercial 51,183 — 51,183 — U.S. Treasury 64,387 — 64,387 — SBA 13,927 — 13,927 — Asset backed securities 9,706 — 9,706 — Corporate bonds 29,355 — 29,355 — Total securities available for sale 397,551 — 396,681 870 Loans held for sale 12,902 — 12,902 — Loans measured at fair value: Residential real estate 10,000 — — 10,000 Derivative assets: Customer-initiated derivatives 5,426 — 5,426 — Forward contracts related to mortgage loans to be delivered for sale 29 — 29 — Interest rate lock commitments 418 — 418 — Total assets at fair value $ 426,326 $ — $ 415,456 $ 10,870 Derivative liabilities: Customer-initiated derivatives 5,426 — 5,426 — Forward contracts related to mortgage loans to be delivered for sale 49 — 49 — Total liabilities at fair value $ 5,475 $ — $ 5,475 $ — (Dollars in thousands) Total Quoted Prices Significant Other Significant December 31, 2020 Securities available for sale: U.S. government sponsored entities and agencies $ 26,358 $ — $ 26,358 $ — State and political subdivision 132,723 — 131,259 1,464 Mortgage-backed securities: residential 26,081 — 26,081 — Mortgage-backed securities: commercial 11,918 — 11,918 — Collateralized mortgage obligations: residential 13,446 — 13,446 — Collateralized mortgage obligations: commercial 58,512 — 58,512 — SBA 17,593 — 17,593 — Asset backed securities 10,072 — 10,072 — Corporate bonds 6,029 — 6,029 — Total securities available for sale $ 302,732 $ — $ 301,268 $ 1,464 Loans held for sale 43,482 — 43,482 — Loans measured at fair value: Residential real estate 8,037 — — 8,037 Derivative assets: Customer-initiated derivatives 12,515 — 12,515 — Forward contracts related to mortgage loans to be delivered for sale 46 — 46 — Interest rate lock commitments 2,194 — 2,194 — Total assets at fair value $ 369,006 $ — $ 359,505 $ 9,501 Derivative liabilities: Customer-initiated derivatives 12,515 — 12,515 — Forward contracts related to mortgage loans to be delivered for sale 423 — 423 — Total liabilities at fair value $ 12,938 $ — $ 12,938 $ —
Level 3 Rollforward	The following table summarizes the changes in Level 3 loans measured at fair value on a recurring basis. For the year ended December 31, (Dollars in thousands) 2021 2020 Loans held for investment Beginning balance $ 8,037 $ 4,063 Transfers from loans held for sale 5,038 5,217 Gains (losses): Recorded in "Mortgage banking activities" (462) 123 Repayments (2,613) (1,366) Ending balance $ 10,000 $ 8,037
Information for Loans Held for Sale Carried at Fair Value	As of December 31, 2021 and December 31, 2020, the aggregate fair value, contractual balance (including accrued interest), and gain or loss for loans held for sale carried at fair value was as follows: (Dollars in thousands) December 31, 2021 December 31, 2020 Aggregate fair value $ 12,902 $ 43,482 Contractual balance 12,527 41,808 Unrealized gain 375 1,674 The total amount of gains as a result of changes in fair value of loans held for sale included in "Mortgage banking activities" for the years ended December 31, 2021, 2020 and 2019 were as follows: For the year ended December 31, (Dollars in thousands) 2021 2020 2019 Change in fair value $ (1,299) $ 1,295 $ 296
Assets Measured at Fair Value on a Non-recurring Basis	Assets measured at fair value on a non-recurring basis are summarized below: (Dollars in thousands) Significant Unobservable Inputs December 31, 2021 Impaired loans: Commercial and industrial $ 272 Residential real estate 488 Mortgage servicing rights 8,279 Other real estate owned 201 Total $ 9,240 December 31, 2020 Impaired loans: Commercial and industrial $ 1,270 Mortgage servicing rights 3,981 Total $ 5,251
Inputs for Assets Measured at Fair Value on a Nonrecurring Basis	The table below presents quantitative information about the significant unobservable inputs for assets measured at fair value on a nonrecurring basis at December 31, 2021 and December 31, 2020: (Dollars in thousands) Fair Value at December 31, 2021 Valuation Significant Discount % Range/Amount Impaired loans $ 760 Discounted appraisals; estimated net realizable value of collateral Collateral discounts 5.00-100.00% Mortgage servicing rights 8,279 Discounted cash flow Prepayment speed 6.28 % Discount rate 8.00 % Other real estate owned 201 Appraisal of property Discounted appraisal value 11.00 % (Dollars in thousands) Fair value at Valuation Significant Discount % Range/Amount Impaired loans $ 1,270 Discounted appraisals; estimated net realizable value of collateral Collateral discounts 10.00-90.00% Mortgage servicing rights 3,981 Discounted cash flow Prepayment speed 8.71 % Discount rate 7.75 %
Carrying Amounts and Estimated Fair Values of Financial Instruments	The carrying amounts and estimated fair values of financial instruments, excluding those previously presented unless otherwise noted, at December 31, 2021 and December 31, 2020 are noted in the table below. Estimated Fair Value (Dollars in thousands) Carrying Value Quoted Prices in Significant Significant Total December 31, 2021 Financial assets: Cash and cash equivalents $ 330,146 $ 29,812 $ 300,334 $ — $ 330,146 Other investments 14,398 — — — N/A Net loans 1,631,346 — — 1,648,443 1,648,443 Accrued interest receivable 6,398 — 1,886 4,512 6,398 Financial liabilities: Deposits 2,040,082 — 2,061,670 — 2,061,670 Borrowings 178,682 — 181,306 — 181,306 Subordinated notes 29,694 — 31,314 — 31,314 Accrued interest payable 766 — 766 — 766 December 31, 2020 Financial assets: Cash and cash equivalents $ 264,071 $ 25,245 $ 238,826 $ — $ 264,071 Other investments 14,398 N/A N/A N/A N/A Net loans 1,701,240 — — 1,740,093 1,740,093 Accrued interest receivable 7,511 — 1,460 6,051 7,511 Financial liabilities: Deposits 1,963,312 — 2,022,399 — 2,022,399 Borrowings 185,684 — 192,546 — 192,546 Subordinated notes 44,592 — 45,902 — 45,902 Accrued interest payable 1,081 — 1,081 — 1,081

Derivatives (Tables)

Derivatives (Tables)	12 Months Ended
	Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Fair Value Hedges Included in the Consolidated Balance Sheets	The following table presents the notional amount and fair value of the Company's derivative instruments held or issued in connection with customer initiated and mortgage banking activities: December 31, 2021 December 31, 2020 (Dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Included in other assets: Customer-initiated and mortgage banking derivatives: Customer-initiated derivatives $ 148,862 $ 5,426 $ 136,023 $ 12,515 Forward contracts related to mortgage loans to be delivered for sale 6,199 29 10,191 46 Interest rate lock commitments 35,263 418 91,531 2,194 Total derivatives included in other assets $ 190,324 $ 5,873 $ 237,745 $ 14,755 Included in other liabilities: Customer-initiated and mortgage banking derivatives: Customer-initiated derivatives $ 148,862 $ 5,426 $ 136,023 $ 12,515 Forward contracts related to mortgage loans to be delivered for sale 29,767 49 92,899 423 Interest rate lock commitments 546 — — — Total derivatives included in other liabilities $ 179,175 $ 5,475 $ 228,922 $ 12,938
Gains (Losses) Related to Derivative Instruments	The following table presents the gains (losses) related to derivative instruments reflecting the changes in fair value: For the year ended December 31, (Dollars in thousands) Location of Gain (Loss) 2021 2020 2019 Forward contracts related to mortgage loans to be delivered for sale Mortgage banking activities $ 1,620 $ (5,011) $ (509) Interest rate lock commitments Mortgage banking activities (1,776) 1,938 58 Total loss recognized in income $ (156) $ (3,073) $ (451)
Offsetting Assets	The table below presents information about the Company's financial instruments that are eligible for offset. Gross amounts not offset in the statements of financial position (Dollars in thousands) Gross amounts recognized Gross amounts offset in the statements of financial condition Net amounts presented in the statements of financial condition Financial instruments Collateral (received)/posted Net amount December 31, 2021 Offsetting derivative assets: Customer initiated derivatives $ 5,426 $ — $ 5,426 $ — $ — $ 5,426 Offsetting derivative liabilities: Customer initiated derivatives 5,426 — 5,426 — 10,383 (4,957) December 31, 2020 Offsetting derivative assets: Customer initiated derivatives $ 12,515 $ — $ 12,515 $ — $ — $ 12,515 Offsetting derivative liabilities: Customer initiated derivatives 12,515 — 12,515 — 15,383 (2,868)
Offsetting Liabilities	The table below presents information about the Company's financial instruments that are eligible for offset. Gross amounts not offset in the statements of financial position (Dollars in thousands) Gross amounts recognized Gross amounts offset in the statements of financial condition Net amounts presented in the statements of financial condition Financial instruments Collateral (received)/posted Net amount December 31, 2021 Offsetting derivative assets: Customer initiated derivatives $ 5,426 $ — $ 5,426 $ — $ — $ 5,426 Offsetting derivative liabilities: Customer initiated derivatives 5,426 — 5,426 — 10,383 (4,957) December 31, 2020 Offsetting derivative assets: Customer initiated derivatives $ 12,515 $ — $ 12,515 $ — $ — $ 12,515 Offsetting derivative liabilities: Customer initiated derivatives 12,515 — 12,515 — 15,383 (2,868)

Parent Company Financial Stat_2

Parent Company Financial Statements (Tables)	12 Months Ended
	Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]
Schedule of Condensed Balance Sheet	Balance Sheets—Parent Company (Dollars in thousands) December 31, 2021 December 31, 2020 Assets Cash and cash equivalents $ 7,442 $ 25,779 Investment in banking subsidiary 263,229 232,671 Investment in captive insurance subsidiary — 1,625 Income tax benefit 59 355 Other assets 46 63 Total assets $ 270,776 $ 260,493 Liabilities Subordinated notes $ 29,694 $ 44,592 Accrued expenses and other liabilities 991 574 Total liabilities 30,685 45,166 Shareholders' equity 240,091 215,327 Total liabilities and shareholders' equity $ 270,776 $ 260,493
Schedule of Condensed Income Statement and Comprehensive Income	Statements of Income and Comprehensive Income—Parent Company For the year ended December 31, (Dollars in thousands) 2021 2020 2019 Income Dividend income from bank subsidiary $ — $ 41,500 $ — Dividend income from captive subsidiary 1,629 815 860 Total income $ 1,629 $ 42,315 $ 860 Expenses Interest on borrowed funds — 40 4 Interest on subordinated notes 1,863 2,537 1,074 Other expenses 1,787 1,238 1,196 Total expenses $ 3,650 $ 3,815 $ 2,274 Income (loss) before income taxes and equity in undistributed net earnings of subsidiaries (2,021) 38,500 (1,414) Income tax expense 909 781 427 Equity in (overdistributed) undistributed earnings of subsidiaries 33,590 (18,868) 17,098 Net income $ 32,478 $ 20,413 $ 16,111 Other comprehensive income (loss) (5,237) 4,590 5,344 Total comprehensive income, net of tax $ 27,241 $ 25,003 $ 21,455
Schedule of Condensed Statements of Cash Flows	Statements of Cash Flows—Parent Company For the year ended December 31, (Dollars in thousands) 2021 2020 2019 Cash flows from operating activities Net income $ 32,478 $ 20,413 $ 16,111 Adjustments to reconcile net income to net cash provided by operating activities: Equity in over (under) distributed earnings of subsidiaries (33,590) 18,868 (17,098) Stock based compensation expense 100 101 74 Net change in other assets, net 313 201 (205) Net change in other liabilities, net 437 59 257 Net cash (used in) provided by operating activities (262) 39,642 (861) Cash flows from investing activities Cash used in acquisitions — (67,944) — Net cash used in investing activities — (67,944) — Cash flows from financing activities Preferred stock offering, net of issuance costs — 23,372 — Net proceeds from issuance of subordinated debt — — 29,487 Pay down of subordinated debt (15,000) — — Share buyback - redeemed stock (1,364) (2,648) (2,165) Preferred stock dividends paid (1,875) (479) — Common stock dividends paid (1,756) (1,469) (1,160) Proceeds from exercised stock options 1,920 95 219 Net cash (used in) provided by financing activities (18,075) 18,871 26,381 Net increase (decrease) in cash and cash equivalents (18,337) (9,431) 25,520 Beginning cash and cash equivalents 25,779 35,210 9,690 Ending cash and cash equivalents $ 7,442 $ 25,779 $ 35,210

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	12 Months Ended
	Dec. 31, 2021
Earnings Per Share [Abstract]
Basic and Diluted Earnings Per Share	The calculation of basic and diluted earnings per share using the two-class method for the periods noted below was as follows: For the year ended December 31, (In thousands, except per share data) 2021 2020 2019 Net income $ 32,478 $ 20,413 $ 16,111 Preferred stock dividends 1,875 479 — Net income available to common shareholders 30,603 19,934 16,111 Net income allocated to participating securities 441 244 159 Net income allocated to common shareholders (1) $ 30,162 $ 19,690 $ 15,952 Weighted average common shares - issued 7,648 7,723 7,733 Average unvested restricted share awards (112) (96) (78) Weighted average common shares outstanding - basic 7,536 7,627 7,655 Effect of dilutive securities: Weighted average common stock equivalents 114 59 115 Weighted average common shares outstanding - diluted 7,650 7,686 7,770 EPS available to common shareholders Basic earnings per common share $ 4.00 $ 2.58 $ 2.08 Diluted earnings per common share $ 3.95 $ 2.57 $ 2.05 (1) Net income allocated to common shareholders for basic and diluted earnings per share may differ under the two-class method as a result of adding common share equivalents for options to dilutive shares outstanding, which alters the ratio used to allocate net income to common shareholders and participating securities for the purposes of calculating diluted earnings per share.

Quarterly Financial Data (Una_2

Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2021
Quarterly Financial Information Disclosure [Abstract]
Unaudited Quarterly Financial Data	The following tables present the unaudited quarterly financial data for the years ended December 31, 2021 and 2020: For the year ended December 31, 2021 (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $ 21,551 $ 21,737 $ 22,322 $ 21,040 Interest expense 2,394 2,121 1,807 1,729 Net interest income 19,157 19,616 20,515 19,311 Provision for (recovery of) loan losses 265 540 (1,189) (341) Net interest income after provision for (recovery of) loan losses 18,892 19,076 21,704 19,652 Noninterest income 7,278 4,326 6,041 4,727 Noninterest expense 15,139 14,588 15,989 16,123 Income before income taxes 11,031 8,814 11,756 8,256 Income tax provision 2,072 1,835 2,291 1,181 Net income 8,959 6,979 9,465 7,075 Preferred stock dividends 469 469 468 469 Net income attributable to common shareholders $ 8,490 $ 6,510 $ 8,997 $ 6,606 Earnings per common share: Basic $ 1.11 $ 0.85 $ 1.19 $ 0.85 Diluted 1.10 0.84 1.16 0.85 Cash dividends declared per common share 0.06 0.06 0.06 0.06 For the year ended December 31, 2020 (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $ 19,817 $ 20,396 $ 20,245 $ 22,181 Interest expense 4,997 4,163 3,648 3,075 Net interest income 14,820 16,233 16,597 19,106 Provision for loan losses 489 5,575 4,270 1,538 Net interest income after provision for loan losses 14,331 10,658 12,327 17,568 Noninterest income 4,690 7,789 9,125 8,110 Noninterest expense 14,562 15,083 15,126 15,461 Income before income taxes 4,459 3,364 6,326 10,217 Income tax provision 349 643 1,117 1,844 Net income 4,110 2,721 5,209 8,373 Preferred stock dividends — — — 479 Net income attributable to common shareholders $ 4,110 $ 2,721 $ 5,209 $ 7,894 Earnings per common share: Basic $ 0.53 $ 0.35 $ 0.68 $ 1.02 Diluted 0.53 0.35 0.67 1.02 Cash dividends declared per common share 0.05 0.05 0.05 0.05

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands	Nov. 04, 2021$ / sharesshares	Aug. 10, 2020USD ($)$ / sharesshares	Jan. 02, 2020USD ($)	Dec. 31, 2021USD ($)officesegmentcenter$ / shares	Dec. 31, 2020USD ($)$ / shares	Dec. 31, 2019USD ($)	Jan. 01, 2022USD ($)
Business Acquisition [Line Items]
Number of offices | office				17
Number of mortgage loan production offices | office				1
Preferred stock, interest rate				7.50%	7.50%
Preferred stock, liquidation preference (in dollars per share) | $ / shares		$ 2,500		$ 2,500	$ 2,500
Net proceeds from issuance of preferred stock				$ 0	$ 23,372	$ 0
Servicing fees				$ 1,200	331
Number of reportable segments | segment				1
Customer-initiated derivatives
Business Acquisition [Line Items]
Derivative asset				$ 5,426	12,515
Derivative liabilities				5,426	$ 12,515
Customer-initiated derivatives | Designated as Hedging Instrument
Business Acquisition [Line Items]
Derivative asset notional amount				148,900
Derivative asset				5,400
Derivative liabilities				$ 5,426
Subsequent Event | Accounting Standards Update 2018-11
Business Acquisition [Line Items]
Right of use assets							$ 9,800
Lease liability							$ 9,800
Series B Preferred Stock
Business Acquisition [Line Items]
Preferred stock, interest rate		7.50%
Depositary Shares
Business Acquisition [Line Items]
Sale of stock, number of shares issued (in shares) | shares		1,000,000
Preferred stock, liquidation preference (in dollars per share) | $ / shares		$ 25
Sale of stock, consideration received on transaction		$ 25,000
Sale of stock, underwriting discounts and offering expenses		1,600
Net proceeds from issuance of preferred stock		$ 23,400
Percentage of interest in a share of perpetual preferred stock		1.00%
Metro Detroit
Business Acquisition [Line Items]
Number of banking centers | center				11
Grand Rapids
Business Acquisition [Line Items]
Number of banking centers | center				1
Jackson
Business Acquisition [Line Items]
Number of banking centers | center				1
Ann Arbor
Business Acquisition [Line Items]
Number of banking centers | center				3
Ann Arbor Bancorp, Inc
Business Acquisition [Line Items]
Total cash consideration			$ 67,900
Level One Bancorp Inc. | First Merchants Corporation
Business Acquisition [Line Items]
Shares issued per each acquiree share (in shares) | shares	0.7167
Cash paid per each acquiree share (in dollars per share) | $ / shares	$ 10.17
Level One Bancorp Inc. | Series B Preferred Stock
Business Acquisition [Line Items]
Preferred stock, interest rate	7.50%

Business Combinations - Additio

Business Combinations - Additional Information (Details) - USD ($) $ in Thousands	Jan. 02, 2020	Jan. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Acquisition and due diligence fees			$ 0	$ 1,654	$ 539
Core Deposits
Business Acquisition [Line Items]
Core deposit intangibles	$ 3,700
Core deposit intangibles, useful life (in years)			10 years
Ann Arbor Bancorp, Inc
Business Acquisition [Line Items]
Total cash consideration	67,900
Goodwill acquired	$ 26,200	$ 26,200

Business Combinations - Identif

Business Combinations - Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Jan. 02, 2020
Business Acquisition [Line Items]
Goodwill recognized in the acquisition	$ 35,554	$ 35,554
Ann Arbor Bancorp, Inc
Business Acquisition [Line Items]
Cash			$ 67,944
Cash and cash equivalents			38,480
Investment securities			47,416
Federal Home Loan Bank stock			923
Loans held for sale			1,703
Loans held for investment			222,356
Premises and equipment			2,404
Core deposit intangibles			3,663
Other assets			8,358
Total assets acquired			325,303
Deposits			264,820
Federal Home Loan Bank advances			15,279
Other liabilities			3,427
Total liabilities assumed			283,526
Total identifiable net assets			41,777
Goodwill recognized in the acquisition			$ 26,167

Business Combinations - Purchas

Business Combinations - Purchased Loans (Details) - Ann Arbor Bancorp, Inc $ in Thousands	Jan. 02, 2020USD ($)
Accounted for under ASC 310-30:
Contractual cash flows	$ 1,018
Contractual cash flows not expected to be collected (nonaccretable difference)	82
Expected cash flows	936
Interest component of expected cash flows (accretable yield)	35
Fair value at acquisition	901
Accounted for under ASC 310-20:
Unpaid principal and interest balance	221,061
Fair value premium	394
Fair value at acquisition	221,455
Total fair value at acquisition	$ 222,356

Business Combinations - Pro For

Business Combinations - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Business Combination and Asset Acquisition [Abstract]
Net interest income	$ 66,796	$ 61,103
Noninterest income	29,714	17,206
Noninterest expense	60,300	53,174
Net income	$ 20,433	$ 17,647
Net income per diluted share (in dollars per share)	$ 2.57	$ 2.26

Securities - Available-for-sale

Securities - Available-for-sale Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 393,823	$ 292,375
Gross Unrealized Gains	8,171	11,129
Gross Unrealized Losses	(4,443)	(772)
Fair Value	397,551	302,732
U.S. government sponsored entities & agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	22,522	26,575
Gross Unrealized Gains	21	103
Gross Unrealized Losses	(769)	(320)
Fair Value	21,774	26,358
State and political subdivision
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	141,751	124,053
Gross Unrealized Gains	6,972	8,751
Gross Unrealized Losses	(447)	(81)
Fair Value	148,276	132,723
Mortgage-backed securities: residential
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	22,316	25,729
Gross Unrealized Gains	97	352
Gross Unrealized Losses	(202)	0
Fair Value	22,211	26,081
Mortgage-backed securities: commercial
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	23,411	11,434
Gross Unrealized Gains	341	484
Gross Unrealized Losses	(481)	0
Fair Value	23,271	11,918
Collateralized mortgage obligations: residential
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	13,557	13,320
Gross Unrealized Gains	45	138
Gross Unrealized Losses	(141)	(12)
Fair Value	13,461	13,446
Collateralized mortgage obligations: commercial
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	51,882	57,398
Gross Unrealized Gains	444	1,206
Gross Unrealized Losses	(1,143)	(92)
Fair Value	51,183	58,512
U.S. Treasury
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	65,098
Gross Unrealized Gains	62
Gross Unrealized Losses	(773)
Fair Value	64,387
SBA
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	13,851	17,639
Gross Unrealized Gains	137	61
Gross Unrealized Losses	(61)	(107)
Fair Value	13,927	17,593
Asset backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	9,762	10,229
Gross Unrealized Gains	9	0
Gross Unrealized Losses	(65)	(157)
Fair Value	9,706	10,072
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	29,673	5,998
Gross Unrealized Gains	43	34
Gross Unrealized Losses	(361)	(3)
Fair Value	$ 29,355	$ 6,029

Securities - Proceeds from Sale

Securities - Proceeds from Sales of Securities and Gains and Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Proceeds	$ 1,657	$ 47,849	$ 70,856
Gross gains	21	1,871	1,566
Gross losses	$ 0	$ (9)	$ (392)

Securities - Maturity (Details)

Securities - Maturity (Details) $ in Thousands	Dec. 31, 2021USD ($)
Amortized Cost
Within one year	$ 6,111
One to five years	58,487
Five to ten years	190,549
Beyond ten years	138,676
Amortized Cost	393,823
Fair Value
Within one year	6,151
One to five years	58,533
Five to ten years	190,429
Beyond ten years	142,438
Fair Value	$ 397,551

Securities - Additional Informa

Securities - Additional Information (Details) $ in Thousands	Dec. 31, 2021USD ($)security	Dec. 31, 2020USD ($)
Debt Securities, Available-for-sale [Line Items]
Securities available-for-sale | $	$ 397,551	$ 302,732
Number of securities | security	332
Number of securities in an unrealized loss position | security	82
Credit Concentration Risk | Securities | Tax-exempt securities backed by the Michigan School Bond Loan Fund
Debt Securities, Available-for-sale [Line Items]
Number of securities | security	68
Securities available-for-sale | $	$ 52,300
Collateral pledged
Debt Securities, Available-for-sale [Line Items]
Securities pledged | $	$ 88,600	$ 98,700

Securities - Securities with Un

Securities - Securities with Unrealized Losses (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Fair value
Less than 12 Months	$ 165,109	$ 53,534
12 Months or Longer	52,068	23,390
Total	217,177	76,924
Unrealized Losses
Less than 12 Months	(2,667)	(496)
12 Months or Longer	(1,776)	(276)
Total	(4,443)	(772)
U.S. government sponsored entities & agencies
Fair value
Less than 12 Months	0	19,680
12 Months or Longer	19,231	0
Total	19,231	19,680
Unrealized Losses
Less than 12 Months	0	(320)
12 Months or Longer	(769)	0
Total	(769)	(320)
State and political subdivision
Fair value
Less than 12 Months	26,710	4,880
12 Months or Longer	5,259	0
Total	31,969	4,880
Unrealized Losses
Less than 12 Months	(364)	(81)
12 Months or Longer	(83)	0
Total	(447)	(81)
Mortgage-backed securities: residential
Fair value
Less than 12 Months	16,854
12 Months or Longer	8
Total	16,862
Unrealized Losses
Less than 12 Months	(202)
12 Months or Longer	0
Total	(202)
Mortgage-backed securities: commercial
Fair value
Less than 12 Months	12,621
12 Months or Longer	3,431
Total	16,052
Unrealized Losses
Less than 12 Months	(337)
12 Months or Longer	(144)
Total	(481)
Collateralized mortgage obligations: residential
Fair value
Less than 12 Months	10,713	0
12 Months or Longer	885	1,109
Total	11,598	1,109
Unrealized Losses
Less than 12 Months	(131)	0
12 Months or Longer	(10)	(12)
Total	(141)	(12)
Collateralized mortgage obligations: commercial
Fair value
Less than 12 Months	16,966	26,477
12 Months or Longer	13,238	0
Total	30,204	26,477
Unrealized Losses
Less than 12 Months	(567)	(92)
12 Months or Longer	(576)	0
Total	(1,143)	(92)
U.S. Treasury
Fair value
Less than 12 Months	54,671
12 Months or Longer	0
Total	54,671
Unrealized Losses
Less than 12 Months	(773)
12 Months or Longer	0
Total	(773)
SBA
Fair value
Less than 12 Months	0	0
12 Months or Longer	5,183	12,209
Total	5,183	12,209
Unrealized Losses
Less than 12 Months	0	0
12 Months or Longer	(61)	(107)
Total	(61)	(107)
Asset backed securities
Fair value
Less than 12 Months	4,703	0
12 Months or Longer	2,411	10,072
Total	7,114	10,072
Unrealized Losses
Less than 12 Months	(10)	0
12 Months or Longer	(55)	(157)
Total	(65)	(157)
Corporate bonds
Fair value
Less than 12 Months	21,871	2,497
12 Months or Longer	2,422	0
Total	24,293	2,497
Unrealized Losses
Less than 12 Months	(283)	(3)
12 Months or Longer	(78)	0
Total	$ (361)	$ (3)

Loans - Recorded Investment in

Loans - Recorded Investment in Loans (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021USD ($)loan	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)
Loans and Leases Receivable Disclosure [Line Items]
Residential loans held for sale	$ 12,902	$ 43,482
Proceeds from sales of residential real estate loans	482,028	545,581	$ 270,363
Total loans	1,652,771	1,723,537
Paycheck Protection Program, CARES Act
Loans and Leases Receivable Disclosure [Line Items]
Total loans	$ 667,200
Number of PPP loans | loan	3,763
Loans, including fees	$ 20,600
Net fee income	$ 12,900	6,500
Number of PPP loans forgiven | loan	3,260
Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans	$ 750,764	720,832
Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Total loans	460,530	685,504
Commercial and industrial | Paycheck Protection Program, CARES Act
Loans and Leases Receivable Disclosure [Line Items]
Total loans	76,500	290,100
Residential real estate
Loans and Leases Receivable Disclosure [Line Items]
Proceeds from sales of residential real estate loans	482,000	545,600
Total loans	440,640	315,476
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Total loans	837	1,725
Originated
Loans and Leases Receivable Disclosure [Line Items]
Total loans	1,486,969	1,498,458
Loans, including fees	68,555	62,069	56,956
Originated | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans	644,337	587,631
Originated | Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Total loans	420,635	629,434
Originated | Residential real estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans	421,226	280,645
Originated | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Total loans	771	748
Acquired
Loans and Leases Receivable Disclosure [Line Items]
Total loans	165,802	225,079
Loans, including fees	10,809	14,421	$ 6,375
Acquired | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans	106,427	133,201
Acquired | Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Total loans	39,895	56,070
Acquired | Residential real estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans	19,414	34,831
Acquired | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Total loans	$ 66	$ 977

Loans - Nonperforming Assets (D

Loans - Nonperforming Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Loan commitment non accrual	$ 206	$ 12
Financing Receivable, Past Due [Line Items]
Other real estate owned	201	0
Loans 90 days or more past due and still accruing	162	269
Nonperforming
Financing Receivable, Past Due [Line Items]
Total nonaccrual loans	11,289	18,816
Other real estate owned	201	0
Total nonperforming assets	11,490	18,816
Nonperforming | Commercial real estate
Financing Receivable, Past Due [Line Items]
Total nonaccrual loans	4,246	7,320
Nonperforming | Commercial and industrial
Financing Receivable, Past Due [Line Items]
Total nonaccrual loans	4,208	7,490
Nonperforming | Residential real estate
Financing Receivable, Past Due [Line Items]
Total nonaccrual loans	2,819	3,991
Nonperforming | Consumer
Financing Receivable, Past Due [Line Items]
Total nonaccrual loans	$ 16	$ 15

Loans - Loan Delinquency (Detai

Loans - Loan Delinquency (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Total loans	$ 1,652,771	$ 1,723,537
Current
Financing Receivable, Past Due [Line Items]
Total loans	1,647,915	1,702,825
30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	2,648	11,176
60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	862	6,388
90+ Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	1,346	3,148
Commercial real estate
Financing Receivable, Past Due [Line Items]
Total loans	750,764	720,832
Commercial real estate | Current
Financing Receivable, Past Due [Line Items]
Total loans	750,666	714,196
Commercial real estate | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	98	4,863
Commercial real estate | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	0	1,773
Commercial real estate | 90+ Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	0	0
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Total loans	460,530	685,504
Commercial and industrial | Current
Financing Receivable, Past Due [Line Items]
Total loans	460,419	681,106
Commercial and industrial | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	107	893
Commercial and industrial | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	4	3,505
Commercial and industrial | 90+ Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	0	0
Residential real estate
Financing Receivable, Past Due [Line Items]
Total loans	440,640	315,476
Residential real estate | Current
Financing Receivable, Past Due [Line Items]
Total loans	436,009	305,800
Residential real estate | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	2,443	5,420
Residential real estate | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	851	1,110
Residential real estate | 90+ Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	1,337	3,146
Consumer
Financing Receivable, Past Due [Line Items]
Total loans	837	1,725
Consumer | Current
Financing Receivable, Past Due [Line Items]
Total loans	821	1,723
Consumer | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	0	0
Consumer | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	7	0
Consumer | 90+ Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	$ 9	$ 2

Loans - Information as to Impai

Loans - Information as to Impaired Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Impaired [Line Items]
Total performing troubled debt restructurings	$ 4,100	$ 4,800
Total recorded investment	9,726	18,259
Performing
Financing Receivable, Impaired [Line Items]
Total performing troubled debt restructurings	699	978
Commercial and industrial
Financing Receivable, Impaired [Line Items]
Total recorded investment	4,542	8,594
Residential real estate
Financing Receivable, Impaired [Line Items]
Total recorded investment	938	2,345
Financial Asset, Excluding Purchased Credit Impaired Loans
Financing Receivable, Impaired [Line Items]
Nonaccrual loans	11,289	18,816
Total recorded investment	11,988	19,794
Financial Asset, Excluding Purchased Credit Impaired Loans | Performing
Financing Receivable, Impaired [Line Items]
Total performing troubled debt restructurings	699	978
Financial Asset, Excluding Purchased Credit Impaired Loans | Commercial and industrial | Performing
Financing Receivable, Impaired [Line Items]
Total performing troubled debt restructurings	334	546
Financial Asset, Excluding Purchased Credit Impaired Loans | Residential real estate | Performing
Financing Receivable, Impaired [Line Items]
Total performing troubled debt restructurings	$ 365	$ 432

Loans - Troubled Debt Restructu

Loans - Troubled Debt Restructuring Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Troubled Debt Restructuring [Line Items]
Recorded investment in troubled debt restructurings	$ 4,100	$ 4,800
Recorded investment in troubled debt restructurings, reserve	314	317
Nonperforming
Financing Receivable, Troubled Debt Restructuring [Line Items]
Recorded investment in troubled debt restructurings	3,400	3,800
Performing
Financing Receivable, Troubled Debt Restructuring [Line Items]
Recorded investment in troubled debt restructurings	$ 699	$ 978

Loans - Recorded Investment of

Loans - Recorded Investment of Loans Modified in TDRs (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021USD ($)loan	Dec. 31, 2020USD ($)loan	Dec. 31, 2019USD ($)loan
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment	$ 0	$ 1,728	$ 332
Total number of loans | loan	3	3	2
Financial effects of modification, net charge-offs	$ 0	$ 0	$ 0
Provision for loan losses	0	0	174
Principal deferral
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment	0	1,654	0
Interest rate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment	0	74	0
Forbearance agreement
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment	0	0	332
Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment	$ 0	$ 1,654	$ 332
Total number of loans | loan	2	2	2
Financial effects of modification, net charge-offs	$ 0	$ 0	$ 0
Provision for loan losses	0	0	174
Commercial and industrial | Principal deferral
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment	0	1,654	0
Commercial and industrial | Interest rate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment	0	0	0
Commercial and industrial | Forbearance agreement
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment	0	0	$ 332
Residential real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment		$ 74
Total number of loans | loan		1
Financial effects of modification, net charge-offs		$ 0
Provision for loan losses		0
Residential real estate | Principal deferral
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment		0
Residential real estate | Interest rate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment		74
Residential real estate | Forbearance agreement
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment		$ 0
Commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment	$ 0
Total number of loans | loan	1
Financial effects of modification, net charge-offs	$ 0
Provision for loan losses	0
Commercial real estate | Principal deferral
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment	0
Commercial real estate | Interest rate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment	0
Commercial real estate | Forbearance agreement
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment	$ 0

Loans - Number of Loans Modifie

Loans - Number of Loans Modified as TDR (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)loan	Dec. 31, 2019USD ($)loan
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total number of loans | loan	1	1
Total recorded investment	$ 203	$ 42
Provision for loan losses following a subsequent default	$ 0	$ 12
Commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total number of loans | loan	1
Total recorded investment	$ 203
Provision for loan losses following a subsequent default	$ 0
Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total number of loans | loan		1
Total recorded investment		$ 42
Provision for loan losses following a subsequent default		$ 12

Loans - Risk Category of Loans

Loans - Risk Category of Loans by Class of Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	$ 1,652,771	$ 1,723,537
Commercial real estate and Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	1,211,294	1,406,336
Commercial real estate and Commercial and industrial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	1,110,697	1,322,975
Commercial real estate and Commercial and industrial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	74,254	47,297
Commercial real estate and Commercial and industrial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	24,866	34,921
Commercial real estate and Commercial and industrial | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	1,477	1,143
Commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	750,764	720,832
Commercial real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	714,487	685,690
Commercial real estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	25,282	21,570
Commercial real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	10,518	13,045
Commercial real estate | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	477	527
Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	460,530	685,504
Commercial and industrial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	396,210	637,285
Commercial and industrial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	48,972	25,727
Commercial and industrial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	14,348	21,876
Commercial and industrial | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	1,000	616
Residential real estate and Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	441,477	317,201
Residential real estate and Consumer | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	438,642	313,195
Residential real estate and Consumer | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	2,835	4,006
Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	440,640	315,476
Residential real estate | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	437,821	311,485
Residential real estate | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	2,819	3,991
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	837	1,725
Consumer | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	821	1,710
Consumer | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	$ 16	$ 15

Loans - Total Balance of all Pu

Loans - Total Balance of all Purchase Credit Impaired Loans from Acquisitions (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Recorded Investment	$ 9,726	$ 18,259
Commercial real estate
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Recorded Investment	4,246	7,320
Commercial and industrial
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Recorded Investment	4,542	8,594
Residential real estate
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Recorded Investment	938	2,345
Acquired with deteriorated credit quality
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Unpaid Principal Balance	8,004	9,769
Recorded Investment	4,175	4,996
Acquired with deteriorated credit quality | Commercial real estate
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Unpaid Principal Balance	4,353	5,109
Recorded Investment	1,597	1,773
Acquired with deteriorated credit quality | Commercial and industrial
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Unpaid Principal Balance	235	643
Recorded Investment	1	274
Acquired with deteriorated credit quality | Residential real estate
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Unpaid Principal Balance	3,416	4,017
Recorded Investment	$ 2,577	$ 2,949

Loans - Activity in the Accreta

Loans - Activity in the Accretable Yield of PCI Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Accretable yield at beginning of period	$ 7,097	$ 9,141	$ 10,947
Additions due to acquisitions	0	35	0
Accretion of income	(1,454)	(1,760)	(2,313)
Adjustments to accretable yield	29	(319)	507
Accretable yield at end of period	$ 5,672	$ 7,097	$ 9,141

Loans - Purchased Credit Impair

Loans - Purchased Credit Impaired Loans Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021USD ($)acquisition	Dec. 31, 2020USD ($)
Financing Receivable, Allowance for Credit Loss [Line Items]
Number of previous acquisitions | acquisition	5
Acquired with deteriorated credit quality
Financing Receivable, Allowance for Credit Loss [Line Items]
Decrease in allowance for loan losses on PCI loans | $	$ (80)	$ (95)

Loans - Related Party Loans (De

Loans - Related Party Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Aggregate loans outstanding from related parties	$ 1,300	$ 8,900
Additions to aggregate loans outstanding form related parties	684	6,600
Repayments and reductions to aggregate loans outstanding form related parties	$ 8,200	$ 1,800

Allowance for Loan Losses - Add

Allowance for Loan Losses - Additional Information (Details) $ in Thousands	Dec. 31, 2021USD ($)loanloanPool
Receivables [Abstract]
Number of purchase credit impaired loan pools | loanPool	5
Number of non-pooled purchase credit impaired loans | loan	9
Nonaccrual loan valuation threshold | $	$ 250

Allowance for Loan Losses - Loa

Allowance for Loan Losses - Loans Individually Evaluated for Impairment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Impaired [Line Items]
Recorded investment with no related allowance	$ 8,902	$ 17,437
Recorded investment with related allowance	824	822
Total recorded investment	9,726	18,259
Contractual principal balance	11,123	19,375
Related allowance	321	332
Average Recorded Investment	12,313	25,293	$ 14,651
Interest Income Recognized	49	82	74
Cash Basis Interest Recognized	592	152	791
Commercial real estate
Financing Receivable, Impaired [Line Items]
Recorded investment with no related allowance	4,246	7,320
Recorded investment with related allowance	0	0
Total recorded investment	4,246	7,320
Contractual principal balance	4,636	7,720
Related allowance	0	0
Average Recorded Investment	5,018	7,981	4,233
Interest Income Recognized	0	0	2
Cash Basis Interest Recognized	345	10	209
Commercial and industrial
Financing Receivable, Impaired [Line Items]
Recorded investment with no related allowance	3,854	7,964
Recorded investment with related allowance	688	630
Total recorded investment	4,542	8,594
Contractual principal balance	5,223	9,208
Related allowance	292	307
Average Recorded Investment	6,008	14,008	8,514
Interest Income Recognized	27	46	43
Cash Basis Interest Recognized	237	87	573
Residential real estate
Financing Receivable, Impaired [Line Items]
Recorded investment with no related allowance	802	2,153
Recorded investment with related allowance	136	192
Total recorded investment	938	2,345
Contractual principal balance	1,264	2,447
Related allowance	29	25
Average Recorded Investment	1,287	3,304	1,904
Interest Income Recognized	22	36	29
Cash Basis Interest Recognized	$ 10	$ 55	$ 9

Allowance for Loan Losses - Act

Allowance for Loan Losses - Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				$ 22,297				$ 12,674	$ 22,297	$ 12,674	$ 11,566
Provision for (recovery of) loan losses	$ (341)	$ (1,189)	$ 540	265	$ 1,538	$ 4,270	$ 5,575	489	(725)	11,872	1,383
Gross chargeoffs									(306)	(2,461)	(636)
Recoveries									159	212	361
Net (chargeoffs) recoveries									(147)	(2,249)	(275)
Ending allowance for loan losses	21,425				22,297				21,425	22,297	12,674
Allowance for loan losses and Balance of loans
Allowance for loan losses, individually evaluated for impairment	321				332				321	332
Allowance for loan losses, Collectively evaluated for impairment	20,516				21,297				20,516	21,297
Ending allowance for loan losses	21,425				22,297				21,425	22,297	12,674
Balance of loans, individually evaluated for impairment	9,726				18,259				9,726	18,259
Balance of loans, collectively evaluated for impairment	1,638,870				1,700,282				1,638,870	1,700,282
Total loans	1,652,771				1,723,537				1,652,771	1,723,537
Acquired with deteriorated credit quality
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				668					668
Ending allowance for loan losses	588				668				588	668
Allowance for loan losses and Balance of loans
Ending allowance for loan losses	588				668				588	668
Total loans	4,175				4,996				4,175	4,996
Commercial real estate
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				9,975				5,773	9,975	5,773	5,227
Provision for (recovery of) loan losses									(520)	4,190	632
Gross chargeoffs									0	0	(92)
Recoveries									0	12	6
Net (chargeoffs) recoveries									0	12	(86)
Ending allowance for loan losses	9,455				9,975				9,455	9,975	5,773
Allowance for loan losses and Balance of loans
Allowance for loan losses, individually evaluated for impairment	0				0				0	0
Allowance for loan losses, Collectively evaluated for impairment	9,088				9,550				9,088	9,550
Ending allowance for loan losses	9,455				9,975				9,455	9,975	5,773
Balance of loans, individually evaluated for impairment	4,246				7,320				4,246	7,320
Balance of loans, collectively evaluated for impairment	744,921				711,739				744,921	711,739
Total loans	750,764				720,832				750,764	720,832
Commercial real estate | Acquired with deteriorated credit quality
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				425					425
Ending allowance for loan losses	367				425				367	425
Allowance for loan losses and Balance of loans
Ending allowance for loan losses	367				425				367	425
Total loans	1,597				1,773				1,597	1,773
Commercial and industrial
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				8,786				5,515	8,786	5,515	5,174
Provision for (recovery of) loan losses									(1,009)	5,302	533
Gross chargeoffs									(31)	(2,118)	(438)
Recoveries									53	87	246
Net (chargeoffs) recoveries									22	(2,031)	(192)
Ending allowance for loan losses	7,799				8,786				7,799	8,786	5,515
Allowance for loan losses and Balance of loans
Allowance for loan losses, individually evaluated for impairment	292				307				292	307
Allowance for loan losses, Collectively evaluated for impairment	7,506				8,465				7,506	8,465
Ending allowance for loan losses	7,799				8,786				7,799	8,786	5,515
Balance of loans, individually evaluated for impairment	4,542				8,594				4,542	8,594
Balance of loans, collectively evaluated for impairment	455,987				676,636				455,987	676,636
Total loans	460,530				685,504				460,530	685,504
Commercial and industrial | Acquired with deteriorated credit quality
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				14					14
Ending allowance for loan losses	1				14				1	14
Allowance for loan losses and Balance of loans
Ending allowance for loan losses	1				14				1	14
Total loans	1				274				1	274
Residential real estate
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				3,527				1,384	3,527	1,384	1,164
Provision for (recovery of) loan losses									795	2,343	143
Gross chargeoffs									(242)	(285)	0
Recoveries									86	85	77
Net (chargeoffs) recoveries									(156)	(200)	77
Ending allowance for loan losses	4,166				3,527				4,166	3,527	1,384
Allowance for loan losses and Balance of loans
Allowance for loan losses, individually evaluated for impairment	29				25				29	25
Allowance for loan losses, Collectively evaluated for impairment	3,917				3,273				3,917	3,273
Ending allowance for loan losses	4,166				3,527				4,166	3,527	1,384
Balance of loans, individually evaluated for impairment	938				2,345				938	2,345
Balance of loans, collectively evaluated for impairment	437,125				310,182				437,125	310,182
Total loans	440,640				315,476				440,640	315,476
Residential real estate | Acquired with deteriorated credit quality
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				229					229
Ending allowance for loan losses	220				229				220	229
Allowance for loan losses and Balance of loans
Ending allowance for loan losses	220				229				220	229
Total loans	2,577				2,949				2,577	2,949
Consumer
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				9				$ 2	9	2	1
Provision for (recovery of) loan losses									9	37	75
Gross chargeoffs									(33)	(58)	(106)
Recoveries									20	28	32
Net (chargeoffs) recoveries									(13)	(30)	(74)
Ending allowance for loan losses	5				9				5	9	2
Allowance for loan losses and Balance of loans
Allowance for loan losses, individually evaluated for impairment	0				0				0	0
Allowance for loan losses, Collectively evaluated for impairment	5				9				5	9
Ending allowance for loan losses	5				9				5	9	$ 2
Balance of loans, individually evaluated for impairment	0				0				0	0
Balance of loans, collectively evaluated for impairment	837				1,725				837	1,725
Total loans	837				1,725				837	1,725
Consumer | Acquired with deteriorated credit quality
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				$ 0					0
Ending allowance for loan losses	0				0				0	0
Allowance for loan losses and Balance of loans
Ending allowance for loan losses	0				0				0	0
Total loans	$ 0				$ 0				$ 0	$ 0

Premises and Equipment (Details

Premises and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Total premises and equipment	$ 25,563	$ 24,973
Less: Accumulated depreciation	10,660	9,139
Net premises and equipment	14,903	15,834
Depreciation expenses	1,602	1,694	$ 1,323
Operating leases, rent expense	1,800	1,800	$ 1,200
Land and land improvements
Property, Plant and Equipment [Line Items]
Total premises and equipment	3,572	3,514
Buildings
Property, Plant and Equipment [Line Items]
Total premises and equipment	10,710	10,656
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total premises and equipment	3,027	3,017
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Total premises and equipment	$ 8,254	$ 7,786

Premises and Equipment - Rent C

Premises and Equipment - Rent Commitments under Non-cancelable Operating Leases (Details) $ in Thousands	Dec. 31, 2021USD ($)
Property, Plant and Equipment [Abstract]
2022	$ 1,833
2023	1,792
2024	1,393
2025	1,268
2026	1,123
Thereafter	3,110
Total lease commitments	$ 10,519

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Additional Information (Details)	Jan. 02, 2020USD ($)	Jan. 31, 2020USD ($)	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2021USD ($)	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Jan. 31, 2020acquisition
Goodwill [Line Items]
Number of banks acquired | acquisition								3
Goodwill recognized in the acquisition					$ 35,554,000	$ 35,554,000
Goodwill impairment					0
Amortization of core deposit intangibles					668,000	768,000	$ 146,000
Lotus Bank
Goodwill [Line Items]
Goodwill acquired				$ 4,600,000
Bank of Michigan
Goodwill [Line Items]
Goodwill acquired			$ 4,800,000
Ann Arbor Bancorp, Inc
Goodwill [Line Items]
Goodwill acquired	$ 26,200,000	$ 26,200,000
Goodwill recognized in the acquisition	$ 26,167,000
Core Deposits
Goodwill [Line Items]
Amortization of core deposit intangibles					$ 668,000	$ 768,000	$ 146,000

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Acquired Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Net Intangible	$ 2,528	$ 3,196
Core Deposits
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	5,708	5,708
Accumulated amortization	(3,180)	(2,512)
Net Intangible	$ 2,528	$ 3,196

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Estimated Amortization Expense (Details) $ in Thousands	Dec. 31, 2021USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2022	$ 586
2023	506
2024	425
2025	344
2026	$ 268

Mortgage Servicing Rights, Ne_2

Mortgage Servicing Rights, Net - Unpaid Principal Balance (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Mortgage Banking [Abstract]
FNMA	$ 601,952	$ 320,467

Mortgage Servicing Rights, Ne_3

Mortgage Servicing Rights, Net - Additional Information (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Mortgage Servicing Loan Inputs and Valuation Techniques [Line Items]
Custodial escrow balances		$ 2,800,000	$ 1,900,000
Mortgage servicing rights, servicing fee, net of allowances		(322,000)	(24,000)
Valuation allowance related to mortgage servicing rights	$ (17,000)		0
Mortgage servicing rights		$ 8,300,000	$ 4,000,000
Discount rate | Valuation Technique, Discounted Cash Flow
Mortgage Servicing Loan Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input percentage		8.00%	7.75%
Minimum | Prepayment speed | Valuation Technique, Discounted Cash Flow
Mortgage Servicing Loan Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input percentage		5.65%	8.44%
Maximum | Prepayment speed | Valuation Technique, Discounted Cash Flow
Mortgage Servicing Loan Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input percentage		7.20%	10.41%

Mortgage Servicing Rights, Ne_4

Mortgage Servicing Rights, Net - Schedule of Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Mortgage servicing rights:
Balance, beginning of period	$ 3,361
Balance, end of period	5,604	$ 3,361
Residential Mortgage
Mortgage servicing rights:
Balance, beginning of period	3,361	76	$ 0
Originated servicing	3,715	3,540	77
Amortization	(1,472)	(255)	(1)
Balance, end of period	$ 5,604	$ 3,361	$ 76

Deposits - Narrative (Details)

Deposits - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Banking and Thrift, Other Disclosures [Abstract]
Time deposits, exceeding FDIC insurance limit, $250,000	$ 267.3	$ 380.3
Brokered deposits	23.1	29.3
Related party deposits	$ 111.7	$ 112

Deposits - Scheduled Maturities

Deposits - Scheduled Maturities of Total Time Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Banking and Thrift, Other Disclosures [Abstract]
Due in 2022	$ 359,707
Due in 2023	49,466
Due in 2024	14,570
Due in 2025	1,778
Due in 2026	280
Total	$ 425,801	$ 596,815

Borrowings and Subordinated D_3

Borrowings and Subordinated Debt - Components of Long-term Debt and Short-term Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 18, 2019	Dec. 21, 2015
Short-term Debt [Line Items]
Total short-term borrowings	$ 2,342	$ 3,204
Total short-term borrowings, weighted average rate	0.25%	0.30%
Debt Instrument [Line Items]
Total long-term borrowings	$ 206,034	$ 227,072
Total long-term debt, weighted average rate	1.57%	1.91%
Total short-term and long-term borrowings	$ 208,376	$ 230,276
Total short-term and long-term borrowings, weighted average rate	1.56%	1.89%
FHLB advances	$ 175,000	$ 181,000
FHLB advances, purchase accounting premiums	86	176
Secured borrowing due in 2022 | Secured borrowing due in 2022
Debt Instrument [Line Items]
Total long-term borrowings	$ 1,254	$ 1,304
Total long-term debt, weighted average rate	1.00%	1.00%
Fixed interest rate	1.00%
FHLB Advances | FHLB advances due in 2022 to 2029
Debt Instrument [Line Items]
Total long-term borrowings	$ 175,086	$ 181,176
Total long-term debt, weighted average rate	1.03%	1.09%
Subordinated notes
Debt Instrument [Line Items]
Fixed interest rate			4.75%	6.375%
Long-term debt gross			$ 30,000	$ 15,000
Subordinated notes | Subordinated notes due in 2025 and 2029
Debt Instrument [Line Items]
Total long-term borrowings	$ 29,694	$ 44,592
Total long-term debt, weighted average rate	4.75%	5.29%
Minimum | FHLB Advances | FHLB advances due in 2022 to 2029
Debt Instrument [Line Items]
Fixed interest rate	0.42%
Maximum | FHLB Advances | FHLB advances due in 2022 to 2029
Debt Instrument [Line Items]
Fixed interest rate	2.93%
Securities sold under agreements to repurchase
Short-term Debt [Line Items]
Total short-term borrowings	$ 2,342	$ 3,204
Total short-term borrowings, weighted average rate	0.25%	0.30%

Borrowings and Subordinated D_4

Borrowings and Subordinated Debt - Contractual Maturity of Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
2022	$ 11,254
2023	3,039
2024	30,000
2025	2,047
2026	0
Thereafter	159,694
Total long-term borrowings	$ 206,034	$ 227,072

Borrowings and Subordinated D_5

Borrowings and Subordinated Debt - Additional Information (Details) - USD ($)	Dec. 15, 2020	Dec. 18, 2019	Dec. 31, 2021	Dec. 31, 2020	Dec. 21, 2015
Debt Instrument [Line Items]
FHLB advances			$ 175,000,000	$ 181,000,000
Federal Home Loan Bank, advances, collateral			580,600,000
Federal Home Loan Bank, advances, maximum borrowing capacity			228,700,000
Total short-term borrowings			2,342,000	3,204,000
Subordinated notes			206,034,000	227,072,000
Line of credit | Unsecured borrowings
Debt Instrument [Line Items]
Maximum borrowing capacity			157,500,000
Secured borrowing due in 2022 | Secured borrowing due in 2022
Debt Instrument [Line Items]
Subordinated notes			$ 1,254,000	1,304,000
Fixed interest rate			1.00%
Subordinated notes
Debt Instrument [Line Items]
Fixed interest rate		4.75%			6.375%
Long-term debt gross		$ 30,000,000			$ 15,000,000
Subordinated notes | SOFR
Debt Instrument [Line Items]
Basis spread on variable rate		3.11%
Subordinated notes | Subordinated notes due in 2025
Debt Instrument [Line Items]
Long-term debt gross			$ 30,000,000	45,000,000
Debt issuance costs			306,000	408,000
Subordinated notes | Subordinated notes due in 2025 | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	4.77%
Federal Reserve Bank | Line of credit | Secured borrowing due in 2022
Debt Instrument [Line Items]
Maximum borrowing capacity			5,000,000
Line of credit | Comerica Bank | Comerica Bank short term line of credit
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 30,000,000
Fixed interest rate			4.05%
Unused capacity commitment fee percentage			0.20%
Outstanding balance			$ 0
Federal funds purchased
Debt Instrument [Line Items]
Total short-term borrowings			0	0
Securities sold under agreements to repurchase
Debt Instrument [Line Items]
Total short-term borrowings			2,342,000	$ 3,204,000
Federal Reserve Bank Advances | Paycheck Protection Program Liquidity Facility
Debt Instrument [Line Items]
Total short-term borrowings			0
Maturity overnight
Debt Instrument [Line Items]
Fair value of collateralized mortgage obligations			4,000,000
Maturity overnight | Securities sold under agreements to repurchase
Debt Instrument [Line Items]
Total short-term borrowings			$ 2,300,000

Income Taxes - Current and Defe

Income Taxes - Current and Deferred Components of the Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Current expense									$ 5,965	$ 7,268	$ 3,995
Provision (benefit) for deferred income taxes									1,414	(3,315)	(592)
Income tax expense	$ 1,181	$ 2,291	$ 1,835	$ 2,072	$ 1,844	$ 1,117	$ 643	$ 349	$ 7,379	$ 3,953	$ 3,403

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Expected Income Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Income tax expense based on federal corporate tax rate									$ 8,370	$ 5,117	$ 4,098
Changes resulting from:
Tax-exempt income									(634)	(589)	(538)
Captive insurance benefit									(1)	(156)	(182)
Net operating loss carryback due to CARES Act								$ (290)	0	(290)	0
Disqualified dispositions from stock options							$ (175)		(4)	(178)	(13)
Other, net									(352)	49	38
Income tax expense	$ 1,181	$ 2,291	$ 1,835	$ 2,072	$ 1,844	$ 1,117	$ 643	$ 349	$ 7,379	$ 3,953	$ 3,403

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Operating loss carryforwards		$ 2,200
Tax benefit from net operating loss carryback due to CARES Act		$ 290	$ 0	$ 290	$ 0
Tax benefit from disqualified dispositions from stock options	$ 175		4	178	$ 13
Tax benefit, share awards vesting/exercised during period			$ 187	$ 189

Income Taxes - Tax Effects of T

Income Taxes - Tax Effects of Temporary Differences (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets:
Allowance for loan losses	$ 4,499	$ 4,682
Net operating loss	0	757
Deferred compensation	280	215
Restricted stock awards	320	290
Stock options	91	126
Deferred loan fees	700	1,403
Nonaccrued interest	173	215
Accrued expenses	395	370
Other	35	63
Total gross deferred tax assets	6,493	8,121
Deferred tax liabilities:
Unrealized gain—available for sale securities	(783)	(2,175)
Depreciation	(831)	(914)
Prepaid expenses	(215)	(212)
Business combination adjustments	(969)	(1,080)
Partnership investments	(362)	(381)
Other	(43)	(47)
Total gross deferred tax liabilities	(3,203)	(4,809)
Net deferred tax assets	$ 3,290	$ 3,312

Stock Based Compensation - 2018

Stock Based Compensation - 2018 Equity Incentive Plan (Details) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Apr. 17, 2018
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards granted (in shares)	55,320	38,170
2018 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock reserved for issuance (in shares)			250,000
Share available to be granted (in shares)	120,827
2018 Plan | Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards granted (in shares)	55,320	38,170

Stock Based Compensation - Stoc

Stock Based Compensation - Stock Options Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)	0	0
Aggregate intrinsic value, stock options outstanding	$ 5,000
Aggregate intrinsic value, stock options exercisable		$ 1,400
Intrinsic value from options exercised	2,300	130	$ 295
Cash received from options exercised, including tax benefit	$ 1,900	96	232
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of options (in years)	ten years
Vesting period (in years)	3 years
Unrecognized compensation costs	$ 0
Share-based compensation expense	$ 6	$ 45	$ 54
Stock Options | Tranche 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	33.33%
Stock Options | Tranche 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	33.33%
Stock Options | Tranche 3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	33.33%

Stock Based Compensation - Summ

Stock Based Compensation - Summary of Stock Option Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Shares
Options outstanding, beginning of year (in shares)	345,218	355,218
Exercised (in shares)	(118,482)	(10,000)	(21,550)
Forfeited (in shares)	(2,175)
Options outstanding, end of year (in shares)	224,561	345,218	355,218
Options Exercisable (in shares)	224,561	335,216
Weighted Average Exercise Price
Options outstanding, beginning of year (in dollars per share)	$ 16.83	$ 16.63
Exercised (in dollars per share)	16.21	9.57
Forfeited (in dollars per share)	10.25
Options outstanding, end of year (in dollars per share)	17.22	16.83	$ 16.63
Options exercisable (in dollars per share)	$ 17.22	$ 16.59
Weighted Average Remaining Contractual Term
Options outstanding (in years)	3 years 3 months 18 days	4 years 1 month 6 days	5 years
Options exercisable (in years)	3 years 3 months 18 days	4 years

Stock Based Compensation - Rest

Stock Based Compensation - Restricted Stock Awards - Changes in Nonvested Shares (Details) - Restricted Stock Awards - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Shares
Beginning balance, nonvested (in shares)	93,270
Granted (in shares)	55,320	38,170
Vested (in shares)	(26,940)
Forfeited (in shares)	(8,500)	(1,400)
Ending balance, nonvested (in shares)	113,150	93,270
Weighted Average Grant-Date Fair Value
Beginning balance, nonvested (in dollars per share)	$ 24.75
Granted (in dollars per share)	22.68
Vested (in dollars per share)	24.78
Forfeited (in dollars per share)	25.06
Ending balance, nonvested (in dollars per share)	$ 23.71	$ 24.75

Stock Based Compensation - Su_2

Stock Based Compensation - Summary of Stock Compensation Activity (Details) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Effects on Shares Outstanding [Roll Forward]
Common shares outstanding, beginning of period (in shares)	7,633,780	7,715,491
Redeemed stock (in shares)	(59,645)	(125,798)	(90,816)
Exercise of stock options (in shares)	118,482	10,000	21,550
Common shares outstanding, end of period (in shares)	7,733,726	7,633,780	7,715,491
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award, Effects on Shares Outstanding [Roll Forward]
Granted (in shares)	55,320	38,170
Restricted stock withheld for taxes (in shares)	(5,711)	(2,683)
Cancellation of restricted stock (in shares)	(8,500)	(1,400)

Stock Based Compensation - Re_2

Stock Based Compensation - Restricted Stock Awards Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock redeemed to cover payroll taxes due at time of vesting	$ 137	$ 64	$ 43
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs	$ 1,200
Weighted-average recognition period for unrecognized compensation costs (in years)	1 year 10 months 24 days
Fair value of shares vested during period	$ 668	559
Share-based compensation expense	811	842	659
Restricted stock redeemed to cover payroll taxes due at time of vesting	$ 137	$ 64	$ 43

Other Benefit Plans (Details)

Other Benefit Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
401 (k) plan, safe harbor, non-elective contribution percentage			3.00%
401 (k) plan, contributions	$ 1,100	$ 1,100	$ 690
Executive Officers
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Deferred compensation plan, expenses incurred	310	350	261
Deferred compensation plan, deferred compensation liability	$ 1,300	$ 1,000	$ 676
First 3% contribution
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Company match percentage		100.00%
Matching contribution percentage of employee pay		3.00%
Next 2% contribution
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Company match percentage		50.00%
Matching contribution percentage of employee pay		2.00%

Off- Balance Sheet Activities_2

Off- Balance Sheet Activities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet risk, allowance	$ 369	$ 490
Commitment to make loans, maximum term (in days)	90 days
Commitments to make loans
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet exposure, fixed rates	$ 13,532	18,269
Off-balance sheet exposure, variable rates	13,531	17,058
Unused lines of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet exposure, fixed rates	49,841	28,898
Off-balance sheet exposure, variable rates	392,186	385,307
Unused standby letters of credit and commercial letters of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet exposure, fixed rates	2,145	2,340
Off-balance sheet exposure, variable rates	$ 0	$ 1,992
Minimum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed rate loan commitments, interest rate	2.89%
Fixed rate loan commitments, maturity (in years)	7 months
Maximum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed rate loan commitments, interest rate	5.25%
Fixed rate loan commitments, maturity (in years)	18 years

Regulatory Capital Matters (Det

Regulatory Capital Matters (Details) $ in Thousands	Dec. 31, 2021USD ($)	Dec. 31, 2020USD ($)
Common equity tier 1 to risk-weighted assets:
Actual capital, amount	$ 175,692	$ 144,938
Actual capital, ratio	0.1037	0.0930
Required capital adequacy, amount	$ 76,222	$ 70,141
Required capital adequacy, ratio	4.50%	4.50%
Required capital adequacy with capital conservation buffer, amount	$ 118,567	$ 109,108
Required capital adequacy with capital conservation buffer, ratio	7.00%	7.00%
Tier 1 capital to risk-weighted assets:
Actual capital, amount	$ 199,064	$ 168,310
Actual capital, ratio	0.1175	0.1080
Required capital adequacy, amount	$ 101,629	$ 93,521
Required capital adequacy, ratio	0.0600	0.0600
Required capital adequacy with capital conservation buffer, amount	$ 143,975	$ 132,488
Required capital adequacy, ratio	8.50%	8.50%
Total capital to risk-weighted assets:
Actual capital, amount	$ 249,939	$ 232,386
Actual capital, ratio	0.1476	0.1491
Required capital adequacy, amount	$ 135,506	$ 124,695
Required capital adequacy, ratio	0.0800	0.0800
Required capital adequacy with capital conservation buffer, amount	$ 177,851	$ 163,662
Required capital adequacy, ratio	10.50%	10.50%
Tier 1 capital to average assets (leverage ratio):
Actual capital, amount	$ 199,064	$ 168,310
Actual capital, ratio	0.0793	0.0693
Required capital adequacy, amount	$ 100,392	$ 97,200
Required capital adequacy, ratio	0.0400	0.0400
Required capital adequacy with capital conservation buffer, amount	$ 100,392	$ 97,200
Required capital adequacy with capital conservation buffer, ratio	4.00%	4.00%
Capital conservation buffer, percentage	2.50%	2.50%
Amount available for dividend payment without regulatory approval	$ 65,500
Bank
Common equity tier 1 to risk-weighted assets:
Actual capital, amount	$ 222,202	$ 185,655
Actual capital, ratio	0.1312	0.1194
Required capital adequacy, amount	$ 76,231	$ 69,950
Required capital adequacy, ratio	4.50%	4.50%
Required capital adequacy with capital conservation buffer, amount	$ 118,581	$ 108,812
Required capital adequacy with capital conservation buffer, ratio	7.00%	7.00%
Prompt corrective action provisions, amount	$ 110,111	$ 101,040
Prompt corrective action provisions, ratio	6.50%	6.50%
Tier 1 capital to risk-weighted assets:
Actual capital, amount	$ 222,202	$ 185,655
Actual capital, ratio	0.1312	0.1194
Required capital adequacy, amount	$ 101,641	$ 93,267
Required capital adequacy, ratio	0.0600	0.0600
Required capital adequacy with capital conservation buffer, amount	$ 143,991	$ 132,129
Required capital adequacy, ratio	8.50%	8.50%
Prompt corrective action provisions, amount	$ 135,521	$ 124,356
Prompt corrective action provisions, ratio	0.0800	0.0800
Total capital to risk-weighted assets:
Actual capital, amount	$ 243,384	$ 205,127
Actual capital, ratio	0.1437	0.1320
Required capital adequacy, amount	$ 135,521	$ 124,356
Required capital adequacy, ratio	0.0800	0.0800
Required capital adequacy with capital conservation buffer, amount	$ 177,872	$ 163,218
Required capital adequacy, ratio	10.50%	10.50%
Prompt corrective action provisions, amount	$ 169,402	$ 155,446
Prompt corrective action provisions, ratio	0.1000	0.1000
Tier 1 capital to average assets (leverage ratio):
Actual capital, amount	$ 222,202	$ 185,655
Actual capital, ratio	0.0886	0.0767
Required capital adequacy, amount	$ 100,272	$ 96,809
Required capital adequacy, ratio	0.0400	0.0400
Required capital adequacy with capital conservation buffer, amount	$ 100,272	$ 96,809
Required capital adequacy with capital conservation buffer, ratio	4.00%	4.00%
Prompt corrective action provisions, amount	$ 125,339	$ 121,011
Prompt corrective action provisions, ratio	0.0500	0.0500

Fair Value - Additional Informa

Fair Value - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of nonaccrual loans held for investment	$ 98,000	$ 105,000
Fair value of loans 90 days past due	93,000	109,000
Ending allowance for loan losses	21,425,000	22,297,000	$ 12,674,000	$ 11,566,000
Chargeoffs related to impaired loans to loans at fair value	147,000	2,249,000	$ 275,000
Write downs recorded in other real estate owned	0	0
Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Ending allowance for loan losses	82,000	95,000
Chargeoffs related to impaired loans to loans at fair value	$ 246,000	$ 315,000
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Additional adjustment percentage	0.05%
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Additional adjustment percentage	0.75%

Fair Value - Fair Value Measure

Fair Value - Fair Value Measurements of Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financial assets:
Securities available-for-sale	$ 397,551	$ 302,732
Recurring
Financial assets:
Securities available-for-sale	397,551	302,732
Loans held for sale	12,902	43,482
Total assets at fair value	426,326	369,006
Total liabilities at fair value	5,475	12,938
Recurring | Residential real estate
Financial assets:
Loans measured at fair value	10,000	8,037
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Securities available-for-sale	0	0
Loans held for sale	0	0
Total assets at fair value	0	0
Total liabilities at fair value	0	0
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential real estate
Financial assets:
Loans measured at fair value	0	0
Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Securities available-for-sale	396,681	301,268
Loans held for sale	12,902	43,482
Total assets at fair value	415,456	359,505
Total liabilities at fair value	5,475	12,938
Recurring | Significant Other Observable Inputs (Level 2) | Residential real estate
Financial assets:
Loans measured at fair value	0	0
Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Securities available-for-sale	870	1,464
Loans held for sale	0	0
Total assets at fair value	10,870	9,501
Total liabilities at fair value	0	0
Recurring | Significant Unobservable Inputs (Level 3) | Residential real estate
Financial assets:
Loans measured at fair value	10,000	8,037
U.S. government sponsored entities & agencies
Financial assets:
Securities available-for-sale	21,774	26,358
U.S. government sponsored entities & agencies | Recurring
Financial assets:
Securities available-for-sale	21,774	26,358
U.S. government sponsored entities & agencies | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Securities available-for-sale	0	0
U.S. government sponsored entities & agencies | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Securities available-for-sale	21,774	26,358
U.S. government sponsored entities & agencies | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Securities available-for-sale	0	0
State and political subdivision
Financial assets:
Securities available-for-sale	148,276	132,723
State and political subdivision | Recurring
Financial assets:
Securities available-for-sale	148,276	132,723
State and political subdivision | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Securities available-for-sale	0	0
State and political subdivision | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Securities available-for-sale	147,406	131,259
State and political subdivision | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Securities available-for-sale	870	1,464
Mortgage-backed securities: residential
Financial assets:
Securities available-for-sale	22,211	26,081
Mortgage-backed securities: residential | Recurring
Financial assets:
Securities available-for-sale	22,211	26,081
Mortgage-backed securities: residential | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Securities available-for-sale	0	0
Mortgage-backed securities: residential | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Securities available-for-sale	22,211	26,081
Mortgage-backed securities: residential | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Securities available-for-sale	0	0
Mortgage-backed securities: commercial
Financial assets:
Securities available-for-sale	23,271	11,918
Mortgage-backed securities: commercial | Recurring
Financial assets:
Securities available-for-sale	23,271	11,918
Mortgage-backed securities: commercial | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Securities available-for-sale	0	0
Mortgage-backed securities: commercial | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Securities available-for-sale	23,271	11,918
Mortgage-backed securities: commercial | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Securities available-for-sale	0	0
Collateralized mortgage obligations: residential
Financial assets:
Securities available-for-sale	13,461	13,446
Collateralized mortgage obligations: residential | Recurring
Financial assets:
Securities available-for-sale	13,461	13,446
Collateralized mortgage obligations: residential | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Securities available-for-sale	0	0
Collateralized mortgage obligations: residential | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Securities available-for-sale	13,461	13,446
Collateralized mortgage obligations: residential | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Securities available-for-sale	0	0
Collateralized mortgage obligations: commercial
Financial assets:
Securities available-for-sale	51,183	58,512
Collateralized mortgage obligations: commercial | Recurring
Financial assets:
Securities available-for-sale	51,183	58,512
Collateralized mortgage obligations: commercial | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Securities available-for-sale	0	0
Collateralized mortgage obligations: commercial | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Securities available-for-sale	51,183	58,512
Collateralized mortgage obligations: commercial | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Securities available-for-sale	0	0
U.S. Treasury
Financial assets:
Securities available-for-sale	64,387
U.S. Treasury | Recurring
Financial assets:
Securities available-for-sale	64,387
U.S. Treasury | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Securities available-for-sale	0
U.S. Treasury | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Securities available-for-sale	64,387
U.S. Treasury | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Securities available-for-sale	0
SBA
Financial assets:
Securities available-for-sale	13,927	17,593
SBA | Recurring
Financial assets:
Securities available-for-sale	13,927	17,593
SBA | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Securities available-for-sale	0	0
SBA | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Securities available-for-sale	13,927	17,593
SBA | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Securities available-for-sale	0	0
Asset backed securities
Financial assets:
Securities available-for-sale	9,706	10,072
Asset backed securities | Recurring
Financial assets:
Securities available-for-sale	9,706	10,072
Asset backed securities | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Securities available-for-sale	0	0
Asset backed securities | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Securities available-for-sale	9,706	10,072
Asset backed securities | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Securities available-for-sale	0	0
Corporate bonds
Financial assets:
Securities available-for-sale	29,355	6,029
Corporate bonds | Recurring
Financial assets:
Securities available-for-sale	29,355	6,029
Corporate bonds | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Securities available-for-sale	0	0
Corporate bonds | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Securities available-for-sale	29,355	6,029
Corporate bonds | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Securities available-for-sale	0	0
Customer-initiated derivatives | Recurring
Financial assets:
Derivative asset	5,426	12,515
Derivative liabilities	5,426	12,515
Customer-initiated derivatives | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Derivative asset	0	0
Derivative liabilities	0	0
Customer-initiated derivatives | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Derivative asset	5,426	12,515
Derivative liabilities	5,426	12,515
Customer-initiated derivatives | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Derivative asset	0	0
Derivative liabilities	0	0
Forward contracts related to mortgage loans to be delivered for sale | Recurring
Financial assets:
Derivative asset	29	46
Derivative liabilities	49	423
Forward contracts related to mortgage loans to be delivered for sale | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Derivative asset	0	0
Derivative liabilities	0	0
Forward contracts related to mortgage loans to be delivered for sale | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Derivative asset	29	46
Derivative liabilities	49	423
Forward contracts related to mortgage loans to be delivered for sale | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Derivative asset	0	0
Derivative liabilities	0	0
Interest rate lock commitments | Recurring
Financial assets:
Derivative asset	418	2,194
Interest rate lock commitments | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Derivative asset	0	0
Interest rate lock commitments | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Derivative asset	418	2,194
Interest rate lock commitments | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Derivative asset	$ 0	$ 0

Fair Value - Level 3 Assets Rol

Fair Value - Level 3 Assets Rollforward (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
Beginning balance	$ 8,037	$ 4,063
Transfers from loans held for sale	5,038	5,217
Gains (losses):
Recorded in "Mortgage banking activities"	(462)	123
Repayments	(2,613)	(1,366)
Ending balance	$ 10,000	$ 8,037

Fair Value - Contractual Obliga

Fair Value - Contractual Obligations (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Aggregate fair value	$ 12,902	$ 43,482
Contractual balance	12,527	41,808
Unrealized gain	$ 375	$ 1,674

Fair Value - Total Amount of Ga

Fair Value - Total Amount of Gains (Losses) from Changes in Fair Value of Loans Held For Sale (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Change in fair value	$ (1,299)	$ 1,295	$ 296

Fair Value - Assets Measured at

Fair Value - Assets Measured at Fair Value on a Non-Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights	$ 8,300	$ 4,000
Other real estate owned	201	0
Non-recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights	8,279	3,981
Other real estate owned	201
Estimate of Fair Value Measurement | Non-recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights	8,279	3,981
Other real estate owned	201
Total assets at fair value	9,240	5,251
Residential real estate | Estimate of Fair Value Measurement | Non-recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	488
Commercial and industrial | Estimate of Fair Value Measurement | Non-recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 272	$ 1,270

Fair Value - Quantitative Infor

Fair Value - Quantitative Information About Significant Unobservable Inputs for Assets Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	$ 9,726	$ 18,259
Mortgage servicing rights	8,300	4,000
Non-recurring | Significant Unobservable Inputs (Level 3)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	760	1,270
Mortgage servicing rights	$ 8,279	$ 3,981
Other real estate owned, measurement input percentage	11.00%
Minimum | Non-recurring | Significant Unobservable Inputs (Level 3) | Valuation Technique, Discounted Appraisals
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, measurement input percentage	5.00%	10.00%
Maximum | Non-recurring | Significant Unobservable Inputs (Level 3) | Valuation Technique, Discounted Appraisals
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, measurement input percentage	100.00%	90.00%
Prepayment speed | Non-recurring | Significant Unobservable Inputs (Level 3) | Valuation Technique, Discounted Cash Flow
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input percentage	6.28%	8.71%
Prepayment speed | Minimum | Valuation Technique, Discounted Cash Flow
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input percentage	5.65%	8.44%
Prepayment speed | Maximum | Valuation Technique, Discounted Cash Flow
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input percentage	7.20%	10.41%
Discount rate | Valuation Technique, Discounted Cash Flow
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input percentage	8.00%	7.75%
Discount rate | Non-recurring | Significant Unobservable Inputs (Level 3) | Valuation Technique, Discounted Cash Flow
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input percentage	8.00%	7.75%

Fair Value - Fair Value Measu_2

Fair Value - Fair Value Measurement of Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Carrying Value
Financial assets:
Cash and cash equivalents	$ 330,146	$ 264,071
Other investments	14,398	14,398
Loans measured at fair value	1,631,346	1,701,240
Accrued interest receivable	6,398	7,511
Financial liabilities:
Deposits	2,040,082	1,963,312
Borrowings	178,682	185,684
Subordinated notes	29,694	44,592
Accrued interest payable	766	1,081
Estimate of Fair Value Measurement
Financial assets:
Cash and cash equivalents	330,146	264,071
Loans measured at fair value	1,648,443	1,740,093
Accrued interest receivable	6,398	7,511
Financial liabilities:
Deposits	2,061,670	2,022,399
Borrowings	181,306	192,546
Subordinated notes	31,314	45,902
Accrued interest payable	766	1,081
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Cash and cash equivalents	29,812	25,245
Loans measured at fair value	0	0
Accrued interest receivable	0	0
Financial liabilities:
Deposits	0	0
Borrowings	0	0
Subordinated notes	0	0
Accrued interest payable	0	0
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2)
Financial assets:
Cash and cash equivalents	300,334	238,826
Loans measured at fair value	0	0
Accrued interest receivable	1,886	1,460
Financial liabilities:
Deposits	2,061,670	2,022,399
Borrowings	181,306	192,546
Subordinated notes	31,314	45,902
Accrued interest payable	766	1,081
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	0	0
Loans measured at fair value	1,648,443	1,740,093
Accrued interest receivable	4,512	6,051
Financial liabilities:
Deposits	0	0
Borrowings	0	0
Subordinated notes	0	0
Accrued interest payable	$ 0	$ 0

Derivatives - Notional Amount a

Derivatives - Notional Amount and Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Other Assets
Notional Amount
Derivative asset	$ 190,324	$ 237,745
Fair Value
Derivative asset	5,873	14,755
Other Liabilities
Notional Amount
Derivative liability	179,175	228,922
Fair Value
Derivative liability	5,475	12,938
Customer-initiated derivatives
Fair Value
Derivative asset	5,426	12,515
Derivative liability	5,426	12,515
Customer-initiated derivatives | Designated as Hedging Instrument
Notional Amount
Derivative asset	148,900
Fair Value
Derivative asset	5,400
Derivative liability	5,426
Customer-initiated derivatives | Designated as Hedging Instrument | Other Assets
Notional Amount
Derivative asset	148,862	136,023
Fair Value
Derivative asset	5,426	12,515
Customer-initiated derivatives | Designated as Hedging Instrument | Other Liabilities
Notional Amount
Derivative liability	148,862	136,023
Fair Value
Derivative liability		12,515
Forward contracts related to mortgage loans to be delivered for sale | Not Designated as Hedging Instrument | Other Assets
Notional Amount
Derivative asset	6,199	10,191
Fair Value
Derivative asset	29	46
Forward contracts related to mortgage loans to be delivered for sale | Not Designated as Hedging Instrument | Other Liabilities
Notional Amount
Derivative liability	29,767	92,899
Fair Value
Derivative liability	49	423
Interest rate lock commitments | Not Designated as Hedging Instrument | Other Assets
Notional Amount
Derivative asset	35,263	91,531
Fair Value
Derivative asset	418	2,194
Interest rate lock commitments | Not Designated as Hedging Instrument | Other Liabilities
Notional Amount
Derivative liability	546	0
Fair Value
Derivative liability	$ 0	$ 0

Derivatives - Gains (Losses) Re

Derivatives - Gains (Losses) Related to Derivative Instruments (Details) - Mortgage banking activities - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Total loss recognized in income	$ (156)	$ (3,073)	$ (451)
Forward contracts related to mortgage loans to be delivered for sale
Derivative Instruments, Gain (Loss) [Line Items]
Total loss recognized in income	1,620	(5,011)	(509)
Interest rate lock commitments
Derivative Instruments, Gain (Loss) [Line Items]
Total loss recognized in income	$ (1,776)	$ 1,938	$ 58

Derivatives - Financial Instrum

Derivatives - Financial Instruments Eligible for Offset (Details) - Customer-initiated derivatives - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Offsetting derivative assets:
Gross amounts recognized	$ 5,426	$ 12,515
Gross amounts offset in the statements of financial condition	0	0
Net amounts presented in the statements of financial condition	5,426	12,515
Gross amounts not offset in the statements of financial position
Financial instruments	0	0
Collateral (received)/posted	0	0
Net amount	5,426	12,515
Offsetting derivative liabilities:
Gross amounts recognized	5,426	12,515
Gross amounts offset in the statements of financial condition	0	0
Net amounts presented in the statements of financial condition	5,426	12,515
Gross amounts not offset in the statements of financial position
Financial instruments	0	0
Collateral (received)/posted	10,383	15,383
Net amount	$ (4,957)	$ (2,868)

Parent Company Financial Stat_3

Parent Company Financial Statements - Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Assets
Cash and cash equivalents	$ 330,146	$ 264,071
Income tax benefit	4,829	3,686
Total assets	2,515,869	2,442,982
Liabilities
Subordinated notes	29,694	44,592
Total liabilities	2,275,778	2,227,655
Shareholders' equity	240,091	215,327	$ 170,703	$ 151,760
Total liabilities and shareholders' equity	2,515,869	2,442,982
Parent Company
Assets
Cash and cash equivalents	7,442	25,779
Investment in banking subsidiary	263,229	232,671
Investment in captive insurance subsidiary	0	1,625
Income tax benefit	59	355
Other assets	46	63
Total assets	270,776	260,493
Liabilities
Subordinated notes	29,694	44,592
Accrued expenses and other liabilities	991	574
Total liabilities	30,685	45,166
Shareholders' equity	240,091	215,327
Total liabilities and shareholders' equity	$ 270,776	$ 260,493

Parent Company Financial Stat_4

Parent Company Financial Statements - Statements of Income and Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Expenses
Interest on borrowed funds									$ 1,875	$ 2,353	$ 1,378
Interest on subordinated notes									1,863	2,537	1,074
Income tax expense	$ (1,181)	$ (2,291)	$ (1,835)	$ (2,072)	$ (1,844)	$ (1,117)	$ (643)	$ (349)	(7,379)	(3,953)	(3,403)
Net income	$ 7,075	$ 9,465	$ 6,979	$ 8,959	$ 8,373	$ 5,209	$ 2,721	$ 4,110	32,478	20,413	16,111
Other comprehensive income (loss)									(5,237)	4,590	5,344
Total comprehensive income, net of tax									27,241	25,003	21,455
Parent Company
Income
Dividend income from bank subsidiary									0	41,500	0
Dividend income from captive subsidiary									1,629	815	860
Total income									1,629	42,315	860
Expenses
Interest on borrowed funds									0	40	4
Interest on subordinated notes									1,863	2,537	1,074
Other expenses									1,787	1,238	1,196
Total expenses									3,650	3,815	2,274
Income (loss) before income taxes and equity in undistributed net earnings of subsidiaries									(2,021)	38,500	(1,414)
Income tax expense									909	781	427
Equity in (overdistributed) undistributed earnings of subsidiaries									33,590	(18,868)	17,098
Net income									32,478	20,413	16,111
Other comprehensive income (loss)									(5,237)	4,590	5,344
Total comprehensive income, net of tax									$ 27,241	$ 25,003	$ 21,455

Parent Company Financial Stat_5

Parent Company Financial Statements - Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities
Net income	$ 7,075	$ 9,465	$ 6,979	$ 8,959	$ 8,373	$ 5,209	$ 2,721	$ 4,110	$ 32,478	$ 20,413	$ 16,111
Adjustments to reconcile net income to net cash provided by operating activities:
Stock based compensation expense									817	887	713
Net cash provided by (used in) operating activities									54,308	(10,786)	4,124
Cash flows from investing activities
Cash used in acquisitions									0	(29,464)	0
Net cash used in investing activities									(39,789)	(369,124)	(73,272)
Cash flows from financing activities
Preferred stock offering, net of issuance costs									0	23,372	0
Net proceeds from issuance of subordinated debt									0	0	29,487
Pay down of subordinated debt									(15,000)	0	0
Share buyback - redeemed stock									(1,364)	(2,648)	(2,165)
Preferred stock dividends paid									(1,875)	(479)	0
Common stock dividends paid									(1,756)	(1,469)	(1,160)
Proceeds from exercised stock options									1,920	95	219
Net cash provided by (used in) financing activities									51,556	540,051	139,782
Net change in cash and cash equivalents									66,075	160,141	70,634
Beginning cash and cash equivalents				264,071				103,930	264,071	103,930	33,296
Ending cash and cash equivalents	330,146				264,071				330,146	264,071	103,930
Parent Company
Cash flows from operating activities
Net income									32,478	20,413	16,111
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in over (under) distributed earnings of subsidiaries									(33,590)	18,868	(17,098)
Stock based compensation expense									100	101	74
Net change in other assets, net									313	201	(205)
Net change in other liabilities, net									437	59	257
Net cash provided by (used in) operating activities									(262)	39,642	(861)
Cash flows from investing activities
Cash used in acquisitions									0	(67,944)	0
Net cash used in investing activities									0	(67,944)	0
Cash flows from financing activities
Preferred stock offering, net of issuance costs									0	23,372	0
Net proceeds from issuance of subordinated debt									0	0	29,487
Pay down of subordinated debt									(15,000)	0	0
Share buyback - redeemed stock									(1,364)	(2,648)	(2,165)
Preferred stock dividends paid									(1,875)	(479)	0
Common stock dividends paid									(1,756)	(1,469)	(1,160)
Proceeds from exercised stock options									1,920	95	219
Net cash provided by (used in) financing activities									(18,075)	18,871	26,381
Net change in cash and cash equivalents									(18,337)	(9,431)	25,520
Beginning cash and cash equivalents				$ 25,779				$ 35,210	25,779	35,210	9,690
Ending cash and cash equivalents	$ 7,442				$ 25,779				$ 7,442	$ 25,779	$ 35,210

Earnings Per Common Share - Cal

Earnings Per Common Share - Calculation of Basic and Diluted Earnings Per Share - Current Period (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income	$ 7,075	$ 9,465	$ 6,979	$ 8,959	$ 8,373	$ 5,209	$ 2,721	$ 4,110	$ 32,478	$ 20,413	$ 16,111
Preferred stock dividends	469	468	469	469	479	0	0	0	1,875	479	0
Net income available to common shareholders - diluted									30,603	19,934	16,111
Net income available to common shareholders	$ 6,606	$ 8,997	$ 6,510	$ 8,490	$ 7,894	$ 5,209	$ 2,721	$ 4,110	30,603	19,934	16,111
Net income allocated to participating securities - diluted									441	244	159
Net income allocated to participating securities - basic									441	244	159
Net income allocated to common shareholders- diluted									30,162	19,690	15,952
Net income allocated to common shareholders- basic									$ 30,162	$ 19,690	$ 15,952
Weighted average common shares outstanding - basic (in shares)									7,536	7,627	7,655
Effect of dilutive securities:
Weighted average common shares outstanding - diluted (in shares)									7,650	7,686	7,770
EPS available to common shareholders
Basic earnings per common share (in dollars per share)	$ 0.85	$ 1.19	$ 0.85	$ 1.11	$ 1.02	$ 0.68	$ 0.35	$ 0.53	$ 4	$ 2.58	$ 2.08
Diluted earnings per common share (in dollars per share)	$ 0.85	$ 1.16	$ 0.84	$ 1.10	$ 1.02	$ 0.67	$ 0.35	$ 0.53	$ 3.95	$ 2.57	$ 2.05
Earnings per share calculation under two-class method
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Weighted average common shares - issued (in shares)									7,648	7,723	7,733
Average unvested restricted share awards (in shares)									(112)	(96)	(78)
Weighted average common shares outstanding - basic (in shares)									7,536	7,627	7,655
Effect of dilutive securities:
Weighted average common stock equivalents (in shares)									114	59	115
Weighted average common shares outstanding - diluted (in shares)									7,650	7,686	7,770

Earnings Per Common Share - Add

Earnings Per Common Share - Additional Information (Details) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from diluted earnings per share calculation (in shares)	0	117,334	30,000

Quarterly Financial Data (Una_3

Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]
Interest income	$ 21,040	$ 22,322	$ 21,737	$ 21,551	$ 22,181	$ 20,245	$ 20,396	$ 19,817	$ 86,650	$ 82,639	$ 70,448
Interest expense	1,729	1,807	2,121	2,394	3,075	3,648	4,163	4,997	8,051	15,883	19,393
Net interest income	19,311	20,515	19,616	19,157	19,106	16,597	16,233	14,820	78,599	66,756	51,055
Provision for (recovery of) loan losses	(341)	(1,189)	540	265	1,538	4,270	5,575	489	(725)	11,872	1,383
Net interest income after provision for loan losses	19,652	21,704	19,076	18,892	17,568	12,327	10,658	14,331	79,324	54,884	49,672
Noninterest income	4,727	6,041	4,326	7,278	8,110	9,125	7,789	4,690	22,372	29,714	14,211
Noninterest expense	16,123	15,989	14,588	15,139	15,461	15,126	15,083	14,562	61,839	60,232	44,369
Income before income taxes	8,256	11,756	8,814	11,031	10,217	6,326	3,364	4,459	39,857	24,366	19,514
Income tax provision	1,181	2,291	1,835	2,072	1,844	1,117	643	349	7,379	3,953	3,403
Net income	7,075	9,465	6,979	8,959	8,373	5,209	2,721	4,110	32,478	20,413	16,111
Preferred stock dividends	469	468	469	469	479	0	0	0	1,875	479	0
Net income available to common shareholders	$ 6,606	$ 8,997	$ 6,510	$ 8,490	$ 7,894	$ 5,209	$ 2,721	$ 4,110	$ 30,603	$ 19,934	$ 16,111
Per common share data:
Basic (in dollars per share)	$ 0.85	$ 1.19	$ 0.85	$ 1.11	$ 1.02	$ 0.68	$ 0.35	$ 0.53	$ 4	$ 2.58	$ 2.08
Diluted (in dollars per share)	0.85	1.16	0.84	1.10	1.02	0.67	0.35	0.53	3.95	2.57	2.05
Cash dividend declared (in dollars per share)	$ 0.06	$ 0.06	$ 0.06	$ 0.06	$ 0.05	$ 0.05	$ 0.05	$ 0.05	$ 0.24	$ 0.20	$ 0.16