Capital Bancorp (CBNK) 10-Q 9 Nov 22 2022 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2022	Nov. 07, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-38671
Entity Registrant Name	CAPITAL BANCORP INC
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	52-2083046
Entity Address, Address Line One	2275 Research Boulevard
Entity Address, Address Line Two	Suite 600
Entity Address, City or Town	Rockville
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	20850
City Area Code	301
Local Phone Number	468-8848
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	CBNK
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		14,057,645
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001419536
Current Fiscal Year End Date	--12-31

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets
Cash and due from banks	$ 14,774	$ 42,914
Interest bearing deposits at other financial institutions	20,867	136,824
Federal funds sold	1,421	3,657
Total cash and cash equivalents	37,062	183,395
Investment securities available for sale	269,620	184,455
Marketable equity securities	232	245
Restricted investments	3,627	3,498
Loans held for sale	6,875	15,989
Small Business Administration Payroll Protection Program loans receivable, net of fees and costs	2,662	108,285
Portfolio loans receivable, net of deferred fees and costs	1,648,001	1,523,982
Less allowance for loan losses	(26,091)	(25,181)
Total portfolio loans held for investment, net	1,621,910	1,498,801
Premises and equipment, net	3,212	3,282
Accrued interest receivable	7,890	7,901
Deferred tax asset	14,047	9,793
Foreclosed real estate	0	86
Bank owned life insurance	36,267	35,506
Other assets	5,954	4,064
Total assets	2,009,358	2,055,300
Deposits
Noninterest-bearing	806,033	787,650
Interest-bearing	931,558	1,009,487
Total deposits	1,737,591	1,797,137
Federal Home Loan Bank advances	22,000	22,000
Other borrowed funds	12,062	12,062
Accrued interest payable	481	473
Other liabilities	23,219	25,725
Total liabilities	1,795,353	1,857,397
Stockholders' equity
Common stock, $.01 par value; 49,000,000 shares authorized; 14,038,599 and 13,962,334 issued and outstanding	140	140
Additional paid-in capital	56,532	54,306
Retained earnings	174,916	144,533
Accumulated other comprehensive loss	(17,583)	(1,076)
Total stockholders' equity	214,005	197,903
Total liabilities and stockholders' equity	$ 2,009,358	$ 2,055,300

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	49,000,000	49,000,000
Common stock, shares issued (in shares)	14,038,599	13,962,334
Common stock, shares outstanding (in shares)	14,038,599	13,962,334

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Interest income
Loans, including fees	$ 36,451	$ 32,840	$ 105,645	$ 87,549
Investment securities available for sale	1,362	549	2,510	1,571
Federal funds sold and other	527	139	1,143	335
Total interest income	38,340	33,528	109,298	89,455
Interest expense
Deposits	1,386	1,285	3,234	4,874
Borrowed funds	277	184	656	559
Total interest expense	1,663	1,469	3,890	5,433
Net interest income	36,677	32,059	105,408	84,022
Provision for Loan Losses	1,260	975	4,247	2,259
Net interest income after provision for loan losses	35,417	31,084	101,161	81,763
Noninterest income
Gain on sale of investment securities available for sale, net	0	0	0	153
Other fees and charges	416	418	1,296	680
Total noninterest income	7,108	12,597	23,811	39,992
Noninterest expenses
Salaries and employee benefits	10,747	9,962	31,129	27,279
Occupancy and equipment	1,138	998	3,476	3,322
Professional fees	3,848	2,555	8,586	5,542
Data processing	7,178	10,161	22,721	29,594
Advertising	1,632	1,027	5,494	3,153
Loan processing	625	644	1,352	2,670
Other operating	2,926	3,280	9,621	10,012
Total noninterest expenses	28,094	28,627	82,379	81,572
Income before income taxes	14,431	15,054	42,593	40,183
Income tax expense	3,336	3,877	9,779	10,376
Net income	$ 11,095	$ 11,177	$ 32,814	$ 29,807
Basic earnings per share (in dollars per share)	$ 0.79	$ 0.81	$ 2.34	$ 2.16
Diluted earnings per share (in dollars per share)	$ 0.77	$ 0.79	$ 2.29	$ 2.11
Weighted average common shares outstanding:
Basic (in shares)	14,030,408	13,793,087	14,008,885	13,772,261
Diluted (in shares)	14,374,980	14,228,497	14,328,602	14,110,789
Service charges on deposits
Noninterest income
Noninterest income	$ 199	$ 160	$ 545	$ 473
Credit card fees
Noninterest income
Noninterest income	5,524	7,554	17,658	21,208
Mortgage banking revenue
Noninterest income
Noninterest income	$ 969	$ 4,465	$ 4,312	$ 17,478

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 11,095	$ 11,177	$ 32,814	$ 29,807
Other comprehensive income (loss):
Unrealized (loss) gain on investment securities available for sale	(5,684)	1,051	(22,026)	(913)
Reclassification of realized gain on sale of investment securities available for sale	0	0	0	(153)
Other comprehensive income (loss)	(5,684)	1,051	(22,026)	(1,066)
Income tax benefit (expense) relating to the items above	1,437	(286)	5,519	262
Other comprehensive (loss) income	(4,247)	765	(16,507)	(804)
Comprehensive income	$ 6,848	$ 11,942	$ 16,307	$ 29,003

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2020		13,753,529
Beginning balance at Dec. 31, 2020	$ 159,311	$ 138	$ 50,602	$ 106,854	$ 1,717
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	8,982			8,982
Unrealized gain (loss) on investment securities available for sale, net of income taxes	(1,699)				(1,699)
Stock options exercised, net of repurchased shares (in shares)		1,795
Stock options exercised, net of repurchased shares	(10)		21	(31)
Shares issued as compensation (in shares)		3,894
Shares issued as compensation	86		86
Stock-based compensation	333		333
Ending balance (in shares) at Mar. 31, 2021		13,759,218
Ending balance at Mar. 31, 2021	167,003	$ 138	51,042	115,805	18
Beginning balance (in shares) at Dec. 31, 2020		13,753,529
Beginning balance at Dec. 31, 2020	159,311	$ 138	50,602	106,854	1,717
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	29,807
Ending balance (in shares) at Sep. 30, 2021		13,801,936
Ending balance at Sep. 30, 2021	189,080	$ 138	52,123	135,906	913
Beginning balance (in shares) at Mar. 31, 2021		13,759,218
Beginning balance at Mar. 31, 2021	167,003	$ 138	51,042	115,805	18
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	9,648			9,648
Unrealized gain (loss) on investment securities available for sale, net of income taxes	130				130
Stock options exercised, net of repurchased shares (in shares)		10,301
Stock options exercised, net of repurchased shares	99		121	(22)
Shares issued as compensation (in shares)		2,096
Shares issued as compensation	26		26
Stock-based compensation	298		298
Ending balance (in shares) at Jun. 30, 2021		13,771,615
Ending balance at Jun. 30, 2021	177,204	$ 138	51,487	125,431	148
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	11,177			11,177
Unrealized gain (loss) on investment securities available for sale, net of income taxes	765				765
Stock options exercised, net of repurchased shares (in shares)		30,321
Stock options exercised, net of repurchased shares	248		261	(13)
Shares issued as compensation	39		39
Stock-based compensation	336		336
Cash dividends to stockholders	(689)			(689)
Ending balance (in shares) at Sep. 30, 2021		13,801,936
Ending balance at Sep. 30, 2021	$ 189,080	$ 138	52,123	135,906	913
Beginning balance (in shares) at Dec. 31, 2021	13,962,334	13,962,334
Beginning balance at Dec. 31, 2021	$ 197,903	$ 140	54,306	144,533	(1,076)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	10,211			10,211
Unrealized gain (loss) on investment securities available for sale, net of income taxes	(6,747)				(6,747)
Stock options exercised, net of repurchased shares (in shares)		27,028
Stock options exercised, net of repurchased shares	244		339	(95)
Shares issued as compensation (in shares)		11,158
Shares issued as compensation	164		164
Stock-based compensation	417		417
Cash dividends to stockholders	(700)			(700)
Ending balance (in shares) at Mar. 31, 2022		14,000,520
Ending balance at Mar. 31, 2022	$ 201,492	$ 140	55,226	153,949	(7,823)
Beginning balance (in shares) at Dec. 31, 2021	13,962,334	13,962,334
Beginning balance at Dec. 31, 2021	$ 197,903	$ 140	54,306	144,533	(1,076)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 32,814
Ending balance (in shares) at Sep. 30, 2022	14,038,599	14,038,599
Ending balance at Sep. 30, 2022	$ 214,005	$ 140	56,532	174,916	(17,583)
Beginning balance (in shares) at Mar. 31, 2022		14,000,520
Beginning balance at Mar. 31, 2022	201,492	$ 140	55,226	153,949	(7,823)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	11,508			11,508
Unrealized gain (loss) on investment securities available for sale, net of income taxes	(5,513)				(5,513)
Stock options exercised, net of repurchased shares (in shares)		6,638
Stock options exercised, net of repurchased shares	77		84	(7)
Shares issued as compensation (in shares)		3,000
Shares issued as compensation	37		37
Stock-based compensation	415		415
Cash dividends to stockholders	(700)			(700)
Ending balance (in shares) at Jun. 30, 2022		14,010,158
Ending balance at Jun. 30, 2022	207,316	$ 140	55,762	164,750	(13,336)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	11,095			11,095
Unrealized gain (loss) on investment securities available for sale, net of income taxes	(4,247)				(4,247)
Stock options exercised, net of repurchased shares (in shares)		28,441
Stock options exercised, net of repurchased shares	268		355	(87)
Stock-based compensation	415		415
Cash dividends to stockholders	$ (842)			(842)
Ending balance (in shares) at Sep. 30, 2022	14,038,599	14,038,599
Ending balance at Sep. 30, 2022	$ 214,005	$ 140	$ 56,532	$ 174,916	$ (17,583)

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021
Statement of Stockholders' Equity [Abstract]
Cash dividends to stockholders (in dollar per share)	$ 0.06	$ 0.05	$ 0.05	$ 0.05

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Operating activities
Net income	$ 32,814	$ 29,807
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	4,247	2,259
Provision for mortgage put-back reserve, net	6	279
Reversal of provision for off balance sheet credit commitments	(54)	(39)
Amortization on investments, net	520	358
Depreciation and amortization	1,090	1,013
Increase in cash surrender value of bank-owned life insurance policies	(761)	(268)
Stock-based compensation expense	1,247	1,006
Employee compensation paid in Company stock	201	26
Deferred income tax expense (benefit)	1,264	(92)
Loss on marketable equity securities	13	0
Gain on sale of securities available for sale	0	(153)
Valuation (increase) decrease on derivatives	5	(60)
(Gain) loss on sale of foreclosed real estate	(20)	28
Increase in valuation of loans held for sale carried at fair value	(4,312)	(17,478)
Proceeds from sales of loans held for sale	269,446	925,093
Originations of loans held for sale	(256,020)	(836,466)
Changes in assets and liabilities:
Decrease in accrued interest receivable	11	306
(Increase) decrease in other assets	(1,880)	1,055
Increase (decrease) in accrued interest payable	8	(295)
Decrease in other liabilities	(2,473)	(3,846)
Net cash provided by operating activities	45,352	102,533
Investing activities
Purchases of securities available for sale	(113,078)	(169,672)
Proceeds from maturities, calls and paydowns of securities available for sale	5,368	12,231
Proceeds from sale of securities available for sale	0	66,534
(Purchases) sales of restricted investments	(129)	473
Purchases of bank-owned life insurance	0	(35,000)
Decrease in SBA-PPP loans receivable, net	105,623	63,840
Increase in portfolio loans receivable, net	(127,356)	(130,564)
Purchases of premises and equipment, net	(1,020)	(239)
Proceeds from sales of foreclosed real estate	106	62
Net cash used for investing activities	(130,486)	(192,335)
Net increase (decrease) in:
Noninterest-bearing deposits	18,383	224,628
Interest-bearing deposits	(77,929)	44,482
Repayment of advances from Federal Reserve Bank	0	(1,954)
Dividends paid	(2,242)	(689)
Net proceeds from exercise of stock options	589	423
Net cash (used for) provided by financing activities	(61,199)	266,890
Net (decrease) increase in cash and cash equivalents	(146,333)	177,088
Cash and cash equivalents, beginning of year	183,395	146,910
Cash and cash equivalents, end of period	37,062	323,998
Noncash activities:
Change in unrealized losses on investments	(22,026)	(1,066)
Cash paid during the period for:
Taxes	8,797	12,596
Interest	$ 3,882	$ 5,728

Nature of Business and Basis of

Nature of Business and Basis of Presentation	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Nature of Business and Basis of Presentation	Capital Bancorp, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 1 - Nature of Business and Basis of Presentation Nature of operations: Capital Bancorp, Inc. is a Maryland corporation and the bank holding company (the “Company”) for Capital Bank, N.A. (the “Bank”). The Company's primary operations are conducted by the Bank, which operates branches in Rockville and Columbia, Maryland; Reston, Virginia; and the District of Columbia. The Bank is principally engaged in the business of investing in commercial, real estate, and credit card loans and attracting deposits. The Company originates residential mortgages for sale in the secondary market through Capital Bank Home Loans (“CBHL”), the Bank’s residential mortgage banking arm, and issues credit cards through OpenSky ® , a secured, digitally-driven nationwide credit card platform. The Company formed Church Street Capital, LLC (“Church Street Capital”) in 2014 to provide short-term secured real estate financing to Washington, D.C. area investors and developers that may not meet all Bank credit criteria. At September 30, 2022, Church Street Capital had loans totaling $7.1 million. In addition, the Company owns all of the stock of Capital Bancorp (MD) Statutory Trust I (the “Trust”). The Trust is a special purpose non-consolidated entity organized for the sole purpose of issuing trust preferred securities. Basis of presentation: The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with rules and regulations of the Securities and Exchange Commission (“SEC”) and include the activity of the Company and its wholly-owned subsidiaries, the Bank and Church Street Capital. The statements do not include all of the information and footnotes required by GAAP for complete financials statements. All adjustments have been made which, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. Such adjustments are all of a normal and recurring nature. All significant inter-company accounts and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the full year. These consolidated financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto as of December 31, 2021, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021. The Company reports its activities as four business segments. In determining the appropriateness of segment definition, the Company considers components of the business about which financial information is available and regularly evaluated relative to resource allocation and performance assessment. Risks and uncertainties The Company has been, and may continue to be, impacted by the coronavirus disease 2019 pandemic (“COVID-19”). The direct impacts of COVID-19 appear to be waning, but the pandemic’s residual impact manifests itself in supply chain and labor market imbalances and ongoing inflationary pressures. To address the economic impact of the pandemic in the U.S., multiple stimulus packages have been enacted to provide economic relief to individuals and businesses, including the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), which established the Small Business Administration Paycheck Protection Program (“SBA-PPP”), the American Rescue Plan Act of 2021 which was enacted in March 2021, and the Inflation Reduction Act of 2022 which was signed into law in August 2022. The Company remains watchful of COVID-19 surges and new variants and continues to evaluate processes in place to execute our business continuity plan and promote the health and safety of our employees. The future direct and indirect impact of the pandemic on the Company’s businesses, results of operations and financial condition continues to remain uncertain as inflationary concerns remain elevated due to continuing supply and demand imbalances associated with the pandemic. Should current economic conditions deteriorate, the macroeconomic environment could have an adverse effect on our businesses, results of operations and financial condition. Significant accounting policies: The preparation of consolidated financial statements in accordance with GAAP requires estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. The primary reference point for the estimates is historical experience and assumptions believed to be reasonable regarding the value of certain assets and liabilities that are not readily available from other sources. Estimates are evaluated on an ongoing basis. Actual results may materially differ from these estimates under different assumptions or conditions. Cash and cash equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from financial institutions, interest-bearing deposits with financial institutions and federal funds sold. Generally, federal funds are sold for one-day periods. Investment securities Investment securities are classified as available for sale and carried at fair value with unrealized gains and losses included in stockholders’ equity on an after-tax basis. Premiums and discounts on investment securities are amortized or accreted using the interest method. Changes in the fair value of debt securities available for sale are included in stockholders’ equity as unrealized gains and losses, net of the related tax effect. Unrealized losses are periodically reviewed to determine whether the loss represents an other than temporary impairment. Any unrealized losses judged to be other than a temporary impairment are charged to income. Marketable equity securities Marketable equity securities are carried at fair value with realized gains and losses included in earnings. Premiums and discounts on investment securities are amortized or accreted using the interest method. Changes in the fair value of equity securities are also included in earnings as gain or loss on marketable equity securities. Loans held for sale Mortgage loans originated and intended for sale are recorded at fair value, determined individually, as of the balance sheet date. Fair value is determined based on outstanding investor commitments, or in the absence of such commitments, based on current investor yield requirements. Gains and losses on loan sales are determined by the specific-identification method. The Company’s current practice is to sell residential mortgage loans on a servicing released basis. Interest on loans held for sale is credited to income based on the principal amounts outstanding. Upon sale and delivery, loans are legally isolated from the Company and the Company has no ability to restrict or constrain the ability of third‑party investors to pledge or exchange the mortgage loans. The Company does not have the entitlement or ability to repurchase the mortgage loans or unilaterally cause third‑party investors to put the mortgage loans back to the Company. Unrealized and realized gains on loan sales are determined using the specific-identification method and are recognized through mortgage banking activity in the Consolidated Statements of Income. The Company elects to measure loans held for sale at fair value to better align reported results with the underlying economic changes in value of the loans on the Company’s balance sheet. Small Business Administration Paycheck Protection Program The SBA-PPP is one of the centerpieces of the CARES Act which was passed on March 27, 2020 in response to the outbreak of COVID-19 and was supplemented with subsequent legislation. Overseen by the United States (“U.S.”) Treasury Department, the SBA-PPP offered cash-flow assistance to nonprofit and small business employers through guaranteed loans. Borrowers are eligible for forgiveness of principal and accrued interest on SBA-PPP loans to the extent that the proceeds are used to cover eligible payroll costs, interest costs, rent, and utility costs over a period between eight and twenty four weeks after the loan is made as long as the borrower retains its employees and their compensation levels. The CARES Act authorized the SBA to fully guarantee these loans. On December 27, 2020, the Consolidated Appropriations Act, 2021 (“CAA”) was signed into law. The CAA provides several amendments to the SBA-PPP, including additional funding for the first and second draws of PPP loans up to March 13, 2021. On March 30, 2021, the PPP Extension Act of 2021 was signed into law, which extended the program to May 31, 2021. Due to the unique nature of these provisions, SBA-PPP loans have been disclosed as a separate balance sheet item. Origination fees received by the SBA are capitalized into the carrying amount of the loans. The deferred fee income, net of origination costs, is recognized over the life of the loan as an adjustment to yield using the effective interest method. SBA-PPP loans receivable as of September 30, 2022 totaled $2.7 million with $53 thousand of net unearned fees. SBA-PPP loans generated interest income of $263 thousand and $3.4 million for the three and nine months ended September 30, 2022 and $1.5 million and $6.3 million for the three and nine months ended September 30, 2021, respectively. Loans and the allowance for loan losses Loans are stated at the principal amount outstanding, adjusted for deferred origination fees and costs, discounts on loans acquired, and the allowance for loan losses. Interest is accrued based on the loan principal balances and stated interest rates. Origination fees and costs are recognized as an adjustment to the related loan yield using approximate interest methods. The Company discontinues the accrual of interest at the earlier of when any portion of the principal and/or interest is 90 days past due, or when it is probable that not all principal and interest payments will be collected, and collateral is insufficient to discharge the debt in full. Generally, interest payments on nonaccrual loans are recorded as a reduction of the principal balance. Loans are considered impaired when, based on current information, management believes the Company will not collect all principal and interest payments according to contractual terms. Generally, loans are reviewed for impairment when the risk grade for a loan is downgraded to a classified asset category. The loans are evaluated for appropriate classification, accrual, impairment, and troubled debt restructure (“TDR”) status. If collection of principal is evaluated as doubtful, all payments are applied to principal. A modification of a loan is considered a TDR when a borrower is experiencing financial difficulty and the modification constitutes a concession; however, the CARES Act provided financial institutions optional temporary relief from TDR and impairment accounting for certain loan modifications related to the COVID-19 pandemic. Under Section 4013 of the CARES Act, banks may suspend (1) the requirement under GAAP for certain modifications that would otherwise be categorized as a TDR and (2) any determination that such loan modifications would be considered a TDR, including the related impairment for accounting purposes. To be eligible, each loan modification must be (1) related to the COVID-19 event; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 31, 2020. The December 31, 2020 deadline was subsequently extended to January 1, 2022, by the CAA. As of September 30, 2022 all of our COVID-19 deferred loans had returned to original payment terms while the outstanding balance at September 30, 2021 was $7.3 million. All other short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not TDRs. This includes short-term modifications such as payment deferrals, fee waivers, extensions of repayment terms, and other delays in payment that are deemed insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. Loans are generally charged-off in part or in full when management determines the loan to be uncollectible. Factors for charge-off that may be considered include: repayments deemed to be extended out beyond reasonable time frames, client bankruptcy and lack of assets, and/or collateral deficiencies. The allowance for loan losses is estimated to adequately provide for probable future losses on existing loans. The allowance consists of specific and general components. For loans that are classified as impaired, an allowance is established when the collateral value, if the loan is collateral dependent, or the discounted cash flows of the impaired loan is lower than the carrying value of that loan. The general component covers pools of nonclassified loans and is based on historical loss experience adjusted with qualitative factors such as: trends in volume and terms of loans; levels of, and trends in, delinquencies and non-accruals; effects of any changes in lending policies, experience, ability and depth of management; national and local economic trends and conditions; commitments and concentrations of credit; changes in the quality of the Company’s loan review system; and the volume of loans with identified incomplete financial documentation. Actual loan performance may differ materially from those estimates. A loss is recognized as a charge to the allowance when management believes that collection of the loan is unlikely. Collections of loans previously charged off are added to the allowance at the time of recovery. The Company determines the allowance for loan losses based on the accumulation of various components that are calculated independently in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 450 for pools of loans, and ASC 310 for TDRs and for individually evaluated loans. The process for determining an appropriate allowance for loan losses is based on a comprehensive and consistently applied analysis of the loan portfolio. The analysis considers all significant factors that affect the collectibility of the portfolio and supports the credit losses estimated by this process. It is important to recognize that the related process, methodology, and underlying assumptions require a substantial degree of judgment. Additional disclosure on the allowance for loan losses, and qualitative factors can be found in Part II, Item 1A - Risk Factors and Note 5 - Portfolio Loans Receivable . The allowance for loan losses for SBA-PPP loans was separately evaluated given the explicit government guarantee. This analysis, which incorporated historical experience with similar SBA guarantees and underwriting, concluded that the likelihood of loss was remote and therefore no allowance for loan losses was assigned to these loans. Premises and equipment Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related property, generally over two Leases The Company accounts for leases according to ASU 2016-02, Leases (Topic 842), and applies a right-of-use (“ROU”) model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset and a liability to make lease payments. The Company elected to apply the package of practical expedients permitting entities to not reassess: 1) whether any expired or existing contracts are or contain leases; 2) the lease classification for any expired or existing leases; and 3) initial direct costs for any existing leases. Additionally, as provided by ASU 2016-02, the Company elected not to apply the recognition requirements of ASC 842 to short-term leases, defined as leases with a term of 12 months or less, and to recognize the lease payments in net income on short-term leases on a straight-line basis over the lease term. Derivative financial instruments The Company enters into commitments to fund residential mortgage loans (interest rate locks) with the intention of selling them in the secondary market. The Company also enters into forward sales agreements for certain funded loans and loan commitments. The Company records unfunded commitments intended for loans held for sale and forward sales agreements at fair value with changes in fair value recorded as a component of mortgage banking revenue. Loans originated and intended for sale in the secondary market are carried at fair value. For pipeline loans which are not pre-sold to an investor, the Company endeavors to manage the interest rate risk on rate lock commitments by entering into forward sale contracts, whereby the Company obtains the right to deliver securities to investors in the future at a specified price. Such contracts are accounted for as derivatives and are recorded at fair value as derivative assets or liabilities, with changes in fair value recorded in mortgage banking revenue. The Company accounts for derivative instruments and hedging activities according to guidelines established in ASC 815-10, Accounting for Derivative Instruments and Hedging Activities , as amended. The Company recognizes all derivatives as either assets or liabilities on the balance sheet and measures those instruments at fair value. Changes in fair value of derivatives designated and accounted for as cash flow hedges, to the extent they are effective as hedges, are recorded in other comprehensive income, net of deferred taxes. Any hedge ineffectiveness would be recognized in the income statement line item pertaining to the hedged item. Fair value measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. The degree of management judgment involved in determining the fair value of a financial instrument is dependent upon the availability of quoted market prices or observable market inputs. For financial instruments that are traded actively and have quoted market prices or observable market inputs, there is minimal subjectivity involved in measuring fair value. However, when quoted market prices or observable market inputs are not fully available, significant management judgment may be necessary to estimate fair value. In developing our fair value estimates, we endeavor to maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy defines Level 1 valuations as those based on quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 valuations include inputs based on quoted prices for similar assets or liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 valuations are based on at least one significant assumption not observable in the market, or significant management judgment or estimation, some of which may be internally developed. Financial assets that are recorded at fair value on a recurring basis include investment securities available for sale, loans held for sale, and derivative financial instruments. Financial liabilities that are recorded at fair value on a recurring basis are comprised of derivative financial instruments. Additional information is included in Note 8 - Fair Value . Bank-owned life insurance The Company had $36.3 million of bank-owned life insurance at September 30, 2022 and $35.3 million at September 30, 2021. The Company recognized income, which is included in other noninterest income, of $255 thousand and $761 thousand for the three and nine months ended September 30, 2022, respectively, and $268 thousand for both the three and nine months ended September 30, 2021. Income taxes Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are recognized when it is deemed more likely than not that the benefits of such deferred income taxes will be realized. Earnings per share: Earnings per share is computed by dividing net income available to common stockholders by the weighted average number of shares outstanding. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding, adjusted for the dilutive effect of stock options and restricted stock using the treasury stock method. At September 30, 2022, there were 140,591 stock options excluded from the calculation as their effect would have been anti-dilutive, whereas at September 30, 2021 there were 147 such options. Comprehensive loss: The Company reports as comprehensive loss all changes in stockholders' equity during the year from sources other than stockholders. Other comprehensive loss refers to all components (income, expenses, gains, and losses) of comprehensive loss that are excluded from net income. The Company's only component of other comprehensive loss is unrealized losses on investment securities available for sale, net of income taxes. Information concerning the Company's accumulated other comprehensive loss as of September 30, 2022 and December 31, 2021 is as follows: (in thousands) September 30, 2022 December 31, 2021 Unrealized losses on securities available for sale $ (23,530) $ (1,504) Deferred tax benefit 5,947 428 Total accumulated comprehensive loss $ (17,583) $ (1,076) Recently issued accounting pronouncements: In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments . ASU 2016-13 introduces guidance that changes the accounting for loan losses and modifies the impairment model for certain debt securities. This ASU introduced a new model known as CECL. CECL applies to financial assets subject to credit losses and measured at amortized cost, as well as a number of off-balance sheet credit exposures. Examples include loans, loan commitments, standby letters of credit, net investments in leases recognized by a lessor and HTM debt securities. The CECL model requires an entity to estimate credit losses expected over the life of an exposure, considering relevant information about historical experience, current conditions and reasonable and supportable forecasts. ASU 2016-13 offers a simplified accounting model for purchased financial assets with more than insignificant credit deterioration since their origination. Additionally, ASU 2016-13 also modifies certain provisions of the current other-than-temporary impairment model for AFS debt securities. Credit losses on AFS debt securities will be restricted to the difference between the security’s amortized cost basis and its fair value. In April 2019, the FASB issued ASU 2019-04 which elaborates on the treatment of accrued interest when measuring credit losses. To meet disclosure requirements we elected a practical expedient to disclose separately the total amount of accrued interest included in the amortized cost basis as a single balance. ASU 2019-04 explains that expected recoveries of amounts previously written off and expected to be written off should be included in the valuation account and should not exceed the aggregate of amounts previously written off and expected to be written off by the entity. In addition, for collateral dependent financial assets, the amendments clarify that an allowance for credit losses that is added to the amortized cost basis of the financial asset(s) should not exceed amounts previously written off. In November 2019, the FASB issued ASU 2019-10, which delayed the effective date of ASU 2016-13 to fiscal years beginning after December 15, 2022 for smaller reporting companies. While early adoption was permitted, the Company did not elect that option. The Company expects the provisions of this standard to impact the Company’s consolidated financial statements and, in particular, the level of the reserve for loan losses. The Company engaged a consultant to assist with the implementation of this ASU and has completed various milestones so as to ensure timely implementation. The Company plans to refine assumptions, complete model validation and identify expected financial statement impact over the next quarter. The Company plans to apply the amendments to the ASU through a cumulative-effect adjustment to retained earnings or prospectively for purchased financial assets with credit deterioration as of the beginning of the year of adoption. While the adoption of this standard is expected to impact the Company's financial statements, management continues to work on refining the estimate of the impact that will be made in the first quarter of 2023. In March 2020, the FASB released ASU 2020-04 - Reference Rate Reform, Topic 848, which provides temporary guidance to ease the potential accounting burden in accounting for, or recognizing the effects from, reference rate reform on financial reporting. The new standard is a result of London Interbank Offered Rate (“LIBOR”) likely being discontinued as an available benchmark rate. The standard is elective and provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference LIBOR, or another reference rate expected to be discontinued. The amendments in the update are effective for all entities between March 12, 2020 and December 31, 2022. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements. In March 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation (“agencies”), issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by COVID-19. The interagency statement was effective immediately and impacted accounting for loan modifications. Under ASC 310-40, “Receivables - Troubled Debt Restructurings by Creditors,” a restructuring of debt constitutes a TDR if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The agencies confirmed with the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. Such modifications include short-term (e.g., six months) modifications that include payment deferrals of (i) principal and interest, (ii) interest only and (iii) principal only, fee waivers, extensions of repayment terms, and other delays in payment that are deemed insignificant. Borrowers considered current were those that were less than 30 days past due on their contractual payments at the time a modification program was implemented. As of September 30, 2022, the Company had offered payment deferrals for commercial and consumer customers for up to six months. The loan modifications offered to borrowers provided the borrower with payment relief in the form of reduced or deferred payments for up to 90 days (six months in selected instances) during which time interest is continuing to accrue. In February 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The ASU eliminates the accounting guidance for troubled debt restructurings by creditors and enhances disclosure requirements for certain loan re-financings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendments also add requirements to disclose current-period gross write-offs by year of origination for financing receivables. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including in an interim period. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company's financial position, results of operations or cash flows. Reclassifications: Certain reclassifications have been made to amounts reported in prior periods to conform to the current period presentation. The reclassifications had no material effect on net income or total stockholders' equity. Subsequent events: Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events through the date the financial statements were available to be issued and no subsequent events occurred requiring accrual or disclosure.

Cash and Cash Equivalents

Cash and Cash Equivalents	9 Months Ended
	Sep. 30, 2022
Cash and Cash Equivalents [Abstract]
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash and amounts due from banks, interest-bearing deposits and federal funds sold. The Bank is required by regulations to maintain an average cash reserve balance based on a percentage of deposits; however, on March 15, 2020, the Federal Reserve announced that reserve requirement ratios would be reduced to zero percent effective March 26, 2020, due to economic conditions, which eliminated the reserve requirement for all depository institutions. The reserve requirement is still at zero percent as of September 30, 2022.

Investment Securities

Investment Securities	9 Months Ended
	Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Investment Securities	Investment Securities The amortized cost and estimated fair value of investment securities at September 30, 2022 and December 31, 2021 are summarized as follows: Investment Securities Available for Sale (in thousands) September 30, 2022 Amortized Unrealized Unrealized Fair Available for sale U.S. Treasuries $ 232,406 $ — $ (17,466) $ 214,940 Municipal 10,817 — (2,730) 8,087 Corporate 5,000 — (352) 4,648 Asset-backed securities 8,323 — (101) 8,222 Mortgage-backed securities 36,604 — (2,881) 33,723 Total $ 293,150 $ — $ (23,530) $ 269,620 December 31, 2021 Available for sale U.S. Treasuries $ 132,452 $ 45 $ (1,496) $ 131,001 Municipal 10,825 43 (394) 10,474 Corporate 5,000 — (66) 4,934 Asset-backed securities 10,093 59 (12) 10,140 Mortgage-backed securities 27,589 514 (197) 27,906 Total $ 185,959 $ 661 $ (2,165) $ 184,455 There were no securities sold during the three and nine months ended September 30, 2022. There were no securities sold during the three months ended September 30, 2021 and 28 securities were sold during the nine months ended September 30, 2021 which generated proceeds of $66.5 million. The investment sales resulted in gross gains of $694 thousand and gross losses of $541 thousand for the nine months ended September 30, 2021. Information related to unrealized losses in the investment portfolio as of September 30, 2022 and December 31, 2021 is summarized as follows: Investment Securities Unrealized Losses (in thousands) Less than 12 months 12 months or longer Total September 30, 2022 Fair Unrealized Fair Unrealized Fair Unrealized U.S. Treasuries $ 116,078 $ (4,968) $ 98,862 $ (12,498) $ 214,940 $ (17,466) Municipal 1,412 (248) 6,675 (2,482) 8,087 (2,730) Corporate — — 4,648 (352) 4,648 (352) Asset-backed securities 6,460 (78) 1,762 (23) 8,222 (101) Mortgage-backed securities 22,126 (1,862) 11,597 (1,019) 33,723 (2,881) Total $ 146,076 $ (7,156) $ 123,544 $ (16,374) $ 269,620 $ (23,530) December 31, 2021 U.S. Treasuries $ 110,191 $ (1,496) $ — $ — $ 110,191 $ (1,496) Municipal 5,750 (248) 3,019 (146) 8,769 (394) Corporate 4,448 (52) 486 (14) 4,934 (66) Asset-backed securities — — 2,115 (12) 2,115 (12) Mortgage-backed securities 14,114 (189) 2,124 (8) 16,238 (197) Total $ 134,503 $ (1,985) $ 7,744 $ (180) $ 142,247 $ (2,165) There were no pledged securities at September 30, 2022 or December 31, 2021. At September 30, 2022, there were fourteen treasury securities, seven municipal securities, five corporate securities, one asset-backed security, and three mortgage-backed securities that had been in an unrealized loss position for greater than twelve months. At December 31, 2021 there were two municipal securities, one corporate security, one asset-backed security, and one mortgage-backed security that had been in an unrealized loss position for greater than twelve months. Management believes that the unrealized losses at September 30, 2022 and December 31, 2021 resulted from changes in interest rates and current market conditions and not as a result of credit deterioration. Management has the ability and the intent to hold these investment securities until maturity or until they recover in value. Contractual maturities of investment securities at September 30, 2022 and December 31, 2021 are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call premiums or prepayment penalties. Contractual Maturities September 30, 2022 December 31, 2021 (in thousands) Amortized Fair Amortized Fair Within one year $ 60,645 $ 60,219 $ — $ — Over one to five years 98,111 91,686 58,602 57,650 Over five to ten years 78,650 67,684 78,850 78,285 Over ten years 10,817 8,086 10,825 10,474 Asset-backed securities (1) 8,323 8,222 10,093 10,140 Mortgage-backed securities (1) 36,604 33,723 27,589 27,906 Total $ 293,150 $ 269,620 $ 185,959 $ 184,455 _______________ (1) Asset-backed and Mortgage-backed securities are due in monthly installments.

SBA-PPP Loans Receivable

SBA-PPP Loans Receivable	9 Months Ended
	Sep. 30, 2022
Loans and Leases Receivable Disclosure [Line Items]
SBA-PPP Loans Receivable	Portfolio Loans Receivable Major classifications of portfolio loans as are as follows: Portfolio Loan Categories (in thousands) September 30, 2022 December 31, 2021 Real estate: Residential $ 466,849 $ 401,607 Commercial 626,030 556,339 Construction 235,045 255,147 Commercial and Industrial 192,207 175,956 Credit card 136,658 141,120 Other consumer 1,055 1,033 Portfolio loans receivable, gross 1,657,844 1,531,202 Deferred origination fees, net (9,843) (7,220) Allowance for loan losses (26,091) (25,181) Portfolio loans receivable, net $ 1,621,910 $ 1,498,801 The Company makes loans to customers located primarily in the Washington, D.C. and Baltimore, Maryland metropolitan areas. Although the loan portfolio is diversified, its performance is influenced by the regional economy. The Company’s loan categories, excluding SBA-PPP loans, previously discussed in Note 4, are described below. Residential Real Estate Loans . One-to-four family mortgage loans are primarily secured by owner-occupied primary residences and, to a lesser extent, investor owned residences. Residential loans are originated through the commercial sales teams and Capital Bank Home Loans division. Residential loans also include home equity lines of credit. Owner-occupied residential real estate loans usually have fixed rates for five Commercial Real Estate Loans . Commercial real estate loans are originated on owner-occupied and non-owner-occupied properties. These loans may be more adversely affected by conditions in the real estate markets or in the general economy. Commercial loans that are secured by owner-occupied commercial real estate and primarily collateralized by operating cash flows are also included in this category of loans. As of September 30, 2022, there were approximately $354.1 million of owner-occupied commercial real estate loans, representing approximately 57% of the commercial real estate portfolio. Commercial real estate loan terms are generally extended for 10 years or less and amortize generally over 25 years or less. The interest rates on commercial real estate loans generally have initial fixed rate terms that adjust typically at five years. Origination fees are routinely charged for services. Personal guarantees from the principal owners of the business are generally required, supported by a review of the principal owners’ personal financial statements and global debt service obligations. The properties securing the portfolio are diverse in type. This diversity may help reduce the exposure to adverse economic events that affect any single industry. Construction Loans . Construction loans are offered within the Company’s Washington, D.C. and Baltimore, Maryland metropolitan operating areas to builders primarily for the construction of single-family homes and condominium and townhouse conversions or renovations and, to a lesser extent, to individuals. Construction loans typically have terms of 12 to 18 months. The Company frequently transitions the end purchaser to permanent financing or re-underwriting and sale into the secondary market through Capital Bank Home Loans. According to underwriting standards, the ratio of loan principal to collateral value, as established by an independent appraisal, cannot exceed 75% for investor-owned and 80% for owner-occupied properties, although exceptions are sometimes made. Semi-annual stress testing of the construction loan portfolio is conducted, and underlying real estate conditions are monitored as well as trends in sales outcomes versus underwriting valuations as part of ongoing risk management efforts. The borrowers’ progress in construction buildout is monitored to enforce the original underwriting guidelines for construction milestones and completion timelines. Commercial and Industrial . In addition to other loan products, general commercial loans, including commercial lines of credit, working capital loans, term loans, equipment financing, letters of credit and other loan products are offered, primarily in target markets, and underwritten based on each borrower’s ability to service debt from income. These loans are primarily made based on the identified cash flows of the borrower and secondarily, on the underlying collateral provided by the borrower. Most commercial business loans are secured by a lien on general business assets including, among other things, available real estate, accounts receivable, promissory notes, inventory and equipment. Personal guaranties from the borrower or other principal are generally obtained. Credit Cards . Through the OpenSky ® credit card division, the Company offers secured, partially secured, and unsecured credit cards on a nationwide basis to under-banked populations and those looking to rebuild their credit scores through a fully digital and mobile platform. The secured lines of credit are secured by a noninterest bearing demand account at the Bank in an amount equal to the full credit limit of the credit card. For the partially secured lines of credit, the Bank offers certain customers an unsecured line in excess of their secured line of credit by using a proprietary scoring model, which considers credit score and repayment history (typically a minimum of six months of on-time repayments, but ultimately determined on a case-by-case basis). Partially secured and unsecured credit cards are only extended to existing secured card customers who have demonstrated sound credit behaviors. Approximately $116.5 million and $126.8 million of the $132.0 million and $140.2 million in secured and partially secured credit card balances were protected by savings deposits held by the Company as of September 30, 2022 and December 31, 2021, respectively. Unsecured balances were $27.3 million and $17.7 million, respectively, for the same periods. Other Consumer Loans . To a limited extent and typically as an accommodation to existing customers, personal consumer loans, such as term loans, car loans and boat loans are offered. Loans acquired through acquisitions are recorded at estimated fair value on their purchase date with no carryover of the related allowance for loan losses. In estimating the fair value of loans acquired, certain factors were considered, including the remaining lives of the acquired loans, payment history, estimated prepayments, estimated loss ratios, estimated value of the underlying collateral and the net present value of cash flows expected. Discounts on loans that were not considered impaired at acquisition were recorded as an accretable discount, which will be recognized in interest income over the terms of the related loans. For loans considered to be impaired at acquisition, the difference between the contractually required payments and expected cash flows are recorded as a non-accretable discount. The remaining non-accretable discounts on loans acquired was $285 thousand as of September 30, 2022 and December 31, 2021. Loans with non-accretable discounts had carrying values of $793 thousand and $818 thousand as of September 30, 2022 and December 31, 2021, respectively. Accretable discounts on loans acquired is summarized as follows: Accretable Discounts on Loans Acquired For the Three Months Ended For the Nine Months Ended (in thousands) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Accretable discount at beginning of period $ 159 $ 212 $ 166 $ 221 Less: Accretion and payoff of loans (11) (23) (18) (32) Accretable discount at end of period $ 148 $ 189 $ 148 $ 189 The following tables set forth the changes in the allowance for loan losses and an allocation of the allowance for loan losses by class for the three and nine months ended September 30, 2022 and September 30, 2021. Allowance for Loan Losses Beginning Provision for Charge-Offs Recoveries Ending (in thousands) Three Months Ended September 30, 2022 Real estate: Residential $ 5,863 $ 106 $ — $ — $ 5,969 Commercial 8,857 (489) — — 8,368 Construction 4,473 (468) — — 4,005 Commercial and Industrial 2,457 (262) — — 2,195 Credit card 4,759 2,373 (1,596) 8 5,544 Other consumer 10 — — — 10 Total $ 26,419 $ 1,260 $ (1,596) $ 8 $ 26,091 Nine Months Ended September 30, 2022 Real estate: Residential $ 5,612 $ 357 $ — $ — $ 5,969 Commercial 8,566 (198) — — 8,368 Construction 4,699 (694) — — 4,005 Commercial and Industrial 2,637 (442) — — 2,195 Credit card 3,655 5,226 (3,375) 38 5,544 Other consumer 12 (2) — — 10 Total $ 25,181 $ 4,247 $ (3,375) $ 38 $ 26,091 Allowance for Loan Losses (in thousands) Beginning Provision for Charge-Offs Recoveries Ending Three Months Ended September 30, 2021 Real estate: Residential $ 6,709 $ (289) $ — $ — $ 6,420 Commercial 7,777 315 — — 8,092 Construction 4,542 330 — — 4,872 Commercial and Industrial 2,536 (409) — 1 2,128 Credit card 2,502 1,024 (305) 3 3,224 Other consumer 13 4 — — 17 Total $ 24,079 $ 975 $ (305) $ 4 $ 24,753 Nine Months Ended September 30, 2021 Real estate: Residential $ 7,153 $ (733) $ — $ — $ 6,420 Commercial 6,786 1,467 (161) — 8,092 Construction 4,595 276 — 1 4,872 Commercial and Industrial 2,417 (256) (39) 6 2,128 Credit card 2,462 1,509 (777) 30 3,224 Other consumer 21 (4) — — 17 Total $ 23,434 $ 2,259 $ (977) $ 37 $ 24,753 As mentioned in Note 1, the allowance for loan losses is believed to adequately provide for probable future losses on existing loans. A major consideration in the determination of the allowance for loan loss on the credit card portfolio is based on historical loss experience in that portfolio and is calculated using both secured and unsecured loan balances. The following tables present, by class and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans. The allowance for loan losses consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-impaired loans and is based on historical loss experience adjusted for current economic factors. Allowance for Loan Loss Composition (in thousands) Allowance for Loan Losses Outstanding Portfolio September 30, 2022 Individually Collectively Individually Collectively Real estate: Residential $ — $ 5,969 $ 3,165 $ 463,684 Commercial — 8,368 1,560 624,470 Construction — 4,005 2,852 232,193 Commercial and Industrial 159 2,036 843 191,364 Credit card — 5,544 — 136,658 Other consumer — 10 — 1,055 Total $ 159 $ 25,932 $ 8,420 $ 1,649,424 December 31, 2021 Real estate: Residential $ — $ 5,612 $ 2,835 $ 398,772 Commercial — 8,566 25 556,314 Construction — 4,699 7,803 247,344 Commercial and Industrial 218 2,419 676 175,280 Credit card — 3,655 — 141,120 Other consumer — 12 — 1,033 Total $ 218 $ 24,963 $ 11,339 $ 1,519,863 Past due loans, segregated by age and class of loans, as of September 30, 2022 and December 31, 2021 were as follows: Portfolio Loans Past Due Loans Loans Total Past Current Total Accruing Non-accrual (in thousands) September 30, 2022 Real estate: Residential $ 1,238 $ 2,869 $ 4,107 $ 462,742 $ 466,849 $ — $ 3,165 Commercial — 957 957 625,073 626,030 — 1,560 Construction 843 2,852 3,695 231,350 235,045 — 2,852 Commercial and Industrial 480 634 1,114 191,093 192,207 — 843 Credit card 18,453 174 18,627 118,031 136,658 174 — Other consumer — — — 1,055 1,055 — — Total $ 21,014 $ 7,486 $ 28,500 $ 1,629,344 $ 1,657,844 $ 174 $ 8,420 December 31, 2021 Real estate: Residential $ 469 $ 2,494 $ 2,963 $ 398,644 $ 401,607 $ 72 $ 2,835 Commercial 367 25 392 555,947 556,339 — 25 Construction — 7,803 7,803 247,344 255,147 — 7,803 Commercial and Industrial 183 593 776 175,180 175,956 — 676 Credit card 19,022 10 19,032 122,088 141,120 10 — Other consumer — — — 1,033 1,033 — — Total $ 20,041 $ 10,925 $ 30,966 $ 1,500,236 $ 1,531,202 $ 82 $ 11,339 There were $1.4 million and $6 thousand of loans secured by one-to-four family residential properties in the process of foreclosure as of September 30, 2022 and December 31, 2021, respectively. Impaired portfolio loans were as follows: Impaired Portfolio Loans Unpaid Recorded Recorded Total Related (in thousands) September 30, 2022 Real estate: Residential $ 3,329 $ 3,165 $ — $ 3,165 $ — Commercial 1,643 1,560 — 1,560 — Construction 2,939 2,852 — 2,852 — Commercial and Industrial 1,028 575 268 843 159 Total $ 8,939 $ 8,152 $ 268 $ 8,420 $ 159 December 31, 2021 Real estate: Residential $ 3,022 $ 2,835 $ — $ 2,835 $ — Commercial 90 25 — 25 — Construction 7,885 7,803 — 7,803 — Commercial and Industrial 832 340 336 676 218 Total $ 11,829 $ 11,003 $ 336 $ 11,339 $ 218 The following tables summarize interest recognized on impaired loans: Interest Recognized on Impaired Portfolio Loans For the Three Months Ended September 30, 2022 For the Nine Months Ended September 30, 2022 (in thousands) Average Interest Average Interest Real estate: Residential $ 3,329 $ — $ 3,341 $ — Commercial 1,643 — 1,650 — Construction 2,939 — 2,938 — Commercial and Industrial 1,242 — 1,267 — Total $ 9,153 $ — $ 9,196 $ — Interest Recognized on Impaired Portfolio Loans For the Three Months Ended September 30, 2021 For the Nine Months Ended September 30, 2021 (in thousands) Average Interest Average Interest Real estate: Residential $ 5,222 $ 45 $ 5,334 $ 67 Commercial 90 5 90 22 Construction 7,885 127 7,779 127 Commercial and Industrial 1,056 16 1,058 49 Total $ 14,253 $ 193 $ 14,261 $ 265 Impaired portfolio loans include loans acquired on which management has recorded a nonaccretable discount. Credit quality indicators As part of the ongoing monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to the risk grade of loans, the level of classified loans, net charge-offs, nonperforming loans, and general economic conditions in the Company’s market. The Company utilizes a risk grading matrix to assign a risk grade to each of its loans. A description of the general characteristics of loans characterized as classified is as follows: Special mention A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. Special mention loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Borrowers may exhibit poor liquidity and leverage positions resulting from generally negative cash flow or negative trends in earnings. Access to alternative financing may be limited to finance companies for business borrowers and may be unavailable for commercial real estate borrowers. Substandard A substandard loan is inadequately protected by the current financial condition and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Borrowers may exhibit recent or unexpected unprofitable operations, an inadequate debt service coverage ratio, or marginal liquidity and capitalization. These loans require more intense supervision by Company management. Doubtful A doubtful loan has all the weaknesses associated with a substandard loan with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The following table presents the balances of classified loans based on the risk grade. Classified loans include Special Mention, Substandard, and Doubtful loans: Portfolio Loan Classifications (in thousands) Pass (1) Special Mention Substandard Doubtful Total September 30, 2022 Real estate: Residential $ 451,471 $ 9,751 $ 5,627 $ — $ 466,849 Commercial 618,461 6,009 1,560 — 626,030 Construction 232,193 — 2,852 — 235,045 Commercial and Industrial 186,448 4,216 1,543 — 192,207 Credit card 136,658 — — — 136,658 Other consumer 1,055 — — — 1,055 Portfolio loans receivable, gross $ 1,626,286 $ 19,976 $ 11,582 $ — $ 1,657,844 December 31, 2021 Real estate: Residential $ 394,488 $ 2,540 $ 4,579 $ — $ 401,607 Commercial 548,244 8,070 25 — 556,339 Construction 243,848 3,496 7,803 — 255,147 Commercial and Industrial 164,066 10,417 1,473 — 175,956 Credit card 141,120 — — — 141,120 Other consumer 1,033 — — — 1,033 Portfolio loans receivable, gross $ 1,492,799 $ 24,523 $ 13,880 $ — $ 1,531,202 ________________________ (1) Pass includes loans graded exceptional, very good, good, satisfactory and pass/watch, in addition to credit cards and consumer credits that are not individually graded. Impaired loans also include certain loans that have been modified in TDRs where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after confirmation of the borrower’s sustained repayment performance for a reasonable period, generally six months. Modifications such as payment deferrals through September 30, 2022 have been short term in nature and are included in the population of loans deferred and have not impacted TDRs. The status of TDRs is as follows: Troubled Debt Restructurings (in thousands) Number of Recorded Investment September 30, 2022 Performing Nonperforming Total Real estate: Residential 4 $ — $ 437 $ 437 Commercial and Industrial 1 — 70 70 Total 5 $ — $ 507 $ 507 December 31, 2021 Real estate: Residential 4 $ — $ 450 $ 450 Commercial and Industrial 1 — 83 83 Total 5 $ — $ 533 $ 533 During the three and nine months ended September 30, 2022 the Company did not have any new TDRs and no TDRs defaulted during the same periods. There were no new TDRs added during the three months ended September 30, 2021. There was one new residential TDR during the nine months ended September 30, 2021 for $319 thousand in which the borrower was granted a rate reduction and payment recast. There was one commercial and industrial TDR that was paid off during the nine months ended September 30, 2021 for $200 thousand. Outstanding loan commitments were as follows: Loan Commitments (in thousands) September 30, 2022 December 31, 2021 Unused lines of credit Real Estate: Residential $ 24,997 $ 15,747 Residential - Home Equity 39,957 37,640 Commercial 33,382 17,225 Construction 76,034 118,518 Commercial and Industrial 48,184 45,135 Credit card (1) 119,680 123,874 Other consumer 274 2,247 Total $ 342,508 $ 360,386 Commitments to originate residential loans held for sale $ — $ 1,385 Letters of credit $ 5,085 $ 5,105 ________________________ (1) Outstanding loan commitments in the credit card portfolio include $114.5 million and $121.7 million in secured balances as of September 30, 2022 and December 31, 2021, respectively. Lines of credit are agreements to lend to a customer as long as there is no violation of any condition of the contract. Lines of credit generally have variable interest rates. Such lines do not represent future cash requirements because it is unlikely that all customers will, at any given time, draw upon their lines in full. Loan commitments generally have variable interest rates, fixed expiration dates, and may require payment of a fee. The Company's maximum exposure to credit loss in the event of nonperformance by the customer is the contractual amount of the credit commitment. Loan commitments and lines of credit are generally made on the same terms, including with regard to collateral, as outstanding loans. Management is not aware of any accounting loss to be incurred by funding these loan commitments. The Company maintains an estimated reserve for off balance sheet items such as unfunded lines of credit, which is reflected in other liabilities, with increases or decreases in the reserve being charged to or released from operating expense. Activity for this account is as follows for the periods presented: Off Balance Sheet Reserve For the Three Months Ended For the Nine Months Ended (in thousands) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Balance at beginning of period $ 1,631 $ 1,745 $ 1,736 $ 1,775 Provision for (reversal of) off balance sheet credit commitments 51 (9) (54) (39) Balance at end of period $ 1,682 $ 1,736 $ 1,682 $ 1,736 The Company makes representations and warranties that loans sold to investors meet the investors’ program guidelines and that the information provided by the borrowers is accurate and complete. In the event of a default on a loan sold, the investor may have the right to make a claim for losses due to document deficiencies, program non-compliance, early payment default, and fraud or borrower misrepresentations. The Company maintains a reserve for potential losses on mortgage loans sold, which is reflected in other liabilities, with changes being charged to or released from operating expense. Activity in this reserve is as follows for the periods presented: Mortgage Loan Put-back Reserve For the Three Months Ended For the Nine Months Ended (in thousands) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Balance at beginning of period $ 1,166 $ 1,369 $ 1,164 $ 1,160 Provision for mortgage loan put backs 4 70 6 279 Balance at end of period $ 1,170 $ 1,439 $ 1,170 $ 1,439
Paycheck Protection Program
Loans and Leases Receivable Disclosure [Line Items]
SBA-PPP Loans Receivable	Capital Bancorp, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 4 - SBA-PPP Loans Receivable

Portfolio Loans Receivable

Portfolio Loans Receivable	9 Months Ended
	Sep. 30, 2022
Receivables [Abstract]
Portfolio Loans Receivable	Portfolio Loans Receivable Major classifications of portfolio loans as are as follows: Portfolio Loan Categories (in thousands) September 30, 2022 December 31, 2021 Real estate: Residential $ 466,849 $ 401,607 Commercial 626,030 556,339 Construction 235,045 255,147 Commercial and Industrial 192,207 175,956 Credit card 136,658 141,120 Other consumer 1,055 1,033 Portfolio loans receivable, gross 1,657,844 1,531,202 Deferred origination fees, net (9,843) (7,220) Allowance for loan losses (26,091) (25,181) Portfolio loans receivable, net $ 1,621,910 $ 1,498,801 The Company makes loans to customers located primarily in the Washington, D.C. and Baltimore, Maryland metropolitan areas. Although the loan portfolio is diversified, its performance is influenced by the regional economy. The Company’s loan categories, excluding SBA-PPP loans, previously discussed in Note 4, are described below. Residential Real Estate Loans . One-to-four family mortgage loans are primarily secured by owner-occupied primary residences and, to a lesser extent, investor owned residences. Residential loans are originated through the commercial sales teams and Capital Bank Home Loans division. Residential loans also include home equity lines of credit. Owner-occupied residential real estate loans usually have fixed rates for five Commercial Real Estate Loans . Commercial real estate loans are originated on owner-occupied and non-owner-occupied properties. These loans may be more adversely affected by conditions in the real estate markets or in the general economy. Commercial loans that are secured by owner-occupied commercial real estate and primarily collateralized by operating cash flows are also included in this category of loans. As of September 30, 2022, there were approximately $354.1 million of owner-occupied commercial real estate loans, representing approximately 57% of the commercial real estate portfolio. Commercial real estate loan terms are generally extended for 10 years or less and amortize generally over 25 years or less. The interest rates on commercial real estate loans generally have initial fixed rate terms that adjust typically at five years. Origination fees are routinely charged for services. Personal guarantees from the principal owners of the business are generally required, supported by a review of the principal owners’ personal financial statements and global debt service obligations. The properties securing the portfolio are diverse in type. This diversity may help reduce the exposure to adverse economic events that affect any single industry. Construction Loans . Construction loans are offered within the Company’s Washington, D.C. and Baltimore, Maryland metropolitan operating areas to builders primarily for the construction of single-family homes and condominium and townhouse conversions or renovations and, to a lesser extent, to individuals. Construction loans typically have terms of 12 to 18 months. The Company frequently transitions the end purchaser to permanent financing or re-underwriting and sale into the secondary market through Capital Bank Home Loans. According to underwriting standards, the ratio of loan principal to collateral value, as established by an independent appraisal, cannot exceed 75% for investor-owned and 80% for owner-occupied properties, although exceptions are sometimes made. Semi-annual stress testing of the construction loan portfolio is conducted, and underlying real estate conditions are monitored as well as trends in sales outcomes versus underwriting valuations as part of ongoing risk management efforts. The borrowers’ progress in construction buildout is monitored to enforce the original underwriting guidelines for construction milestones and completion timelines. Commercial and Industrial . In addition to other loan products, general commercial loans, including commercial lines of credit, working capital loans, term loans, equipment financing, letters of credit and other loan products are offered, primarily in target markets, and underwritten based on each borrower’s ability to service debt from income. These loans are primarily made based on the identified cash flows of the borrower and secondarily, on the underlying collateral provided by the borrower. Most commercial business loans are secured by a lien on general business assets including, among other things, available real estate, accounts receivable, promissory notes, inventory and equipment. Personal guaranties from the borrower or other principal are generally obtained. Credit Cards . Through the OpenSky ® credit card division, the Company offers secured, partially secured, and unsecured credit cards on a nationwide basis to under-banked populations and those looking to rebuild their credit scores through a fully digital and mobile platform. The secured lines of credit are secured by a noninterest bearing demand account at the Bank in an amount equal to the full credit limit of the credit card. For the partially secured lines of credit, the Bank offers certain customers an unsecured line in excess of their secured line of credit by using a proprietary scoring model, which considers credit score and repayment history (typically a minimum of six months of on-time repayments, but ultimately determined on a case-by-case basis). Partially secured and unsecured credit cards are only extended to existing secured card customers who have demonstrated sound credit behaviors. Approximately $116.5 million and $126.8 million of the $132.0 million and $140.2 million in secured and partially secured credit card balances were protected by savings deposits held by the Company as of September 30, 2022 and December 31, 2021, respectively. Unsecured balances were $27.3 million and $17.7 million, respectively, for the same periods. Other Consumer Loans . To a limited extent and typically as an accommodation to existing customers, personal consumer loans, such as term loans, car loans and boat loans are offered. Loans acquired through acquisitions are recorded at estimated fair value on their purchase date with no carryover of the related allowance for loan losses. In estimating the fair value of loans acquired, certain factors were considered, including the remaining lives of the acquired loans, payment history, estimated prepayments, estimated loss ratios, estimated value of the underlying collateral and the net present value of cash flows expected. Discounts on loans that were not considered impaired at acquisition were recorded as an accretable discount, which will be recognized in interest income over the terms of the related loans. For loans considered to be impaired at acquisition, the difference between the contractually required payments and expected cash flows are recorded as a non-accretable discount. The remaining non-accretable discounts on loans acquired was $285 thousand as of September 30, 2022 and December 31, 2021. Loans with non-accretable discounts had carrying values of $793 thousand and $818 thousand as of September 30, 2022 and December 31, 2021, respectively. Accretable discounts on loans acquired is summarized as follows: Accretable Discounts on Loans Acquired For the Three Months Ended For the Nine Months Ended (in thousands) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Accretable discount at beginning of period $ 159 $ 212 $ 166 $ 221 Less: Accretion and payoff of loans (11) (23) (18) (32) Accretable discount at end of period $ 148 $ 189 $ 148 $ 189 The following tables set forth the changes in the allowance for loan losses and an allocation of the allowance for loan losses by class for the three and nine months ended September 30, 2022 and September 30, 2021. Allowance for Loan Losses Beginning Provision for Charge-Offs Recoveries Ending (in thousands) Three Months Ended September 30, 2022 Real estate: Residential $ 5,863 $ 106 $ — $ — $ 5,969 Commercial 8,857 (489) — — 8,368 Construction 4,473 (468) — — 4,005 Commercial and Industrial 2,457 (262) — — 2,195 Credit card 4,759 2,373 (1,596) 8 5,544 Other consumer 10 — — — 10 Total $ 26,419 $ 1,260 $ (1,596) $ 8 $ 26,091 Nine Months Ended September 30, 2022 Real estate: Residential $ 5,612 $ 357 $ — $ — $ 5,969 Commercial 8,566 (198) — — 8,368 Construction 4,699 (694) — — 4,005 Commercial and Industrial 2,637 (442) — — 2,195 Credit card 3,655 5,226 (3,375) 38 5,544 Other consumer 12 (2) — — 10 Total $ 25,181 $ 4,247 $ (3,375) $ 38 $ 26,091 Allowance for Loan Losses (in thousands) Beginning Provision for Charge-Offs Recoveries Ending Three Months Ended September 30, 2021 Real estate: Residential $ 6,709 $ (289) $ — $ — $ 6,420 Commercial 7,777 315 — — 8,092 Construction 4,542 330 — — 4,872 Commercial and Industrial 2,536 (409) — 1 2,128 Credit card 2,502 1,024 (305) 3 3,224 Other consumer 13 4 — — 17 Total $ 24,079 $ 975 $ (305) $ 4 $ 24,753 Nine Months Ended September 30, 2021 Real estate: Residential $ 7,153 $ (733) $ — $ — $ 6,420 Commercial 6,786 1,467 (161) — 8,092 Construction 4,595 276 — 1 4,872 Commercial and Industrial 2,417 (256) (39) 6 2,128 Credit card 2,462 1,509 (777) 30 3,224 Other consumer 21 (4) — — 17 Total $ 23,434 $ 2,259 $ (977) $ 37 $ 24,753 As mentioned in Note 1, the allowance for loan losses is believed to adequately provide for probable future losses on existing loans. A major consideration in the determination of the allowance for loan loss on the credit card portfolio is based on historical loss experience in that portfolio and is calculated using both secured and unsecured loan balances. The following tables present, by class and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans. The allowance for loan losses consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-impaired loans and is based on historical loss experience adjusted for current economic factors. Allowance for Loan Loss Composition (in thousands) Allowance for Loan Losses Outstanding Portfolio September 30, 2022 Individually Collectively Individually Collectively Real estate: Residential $ — $ 5,969 $ 3,165 $ 463,684 Commercial — 8,368 1,560 624,470 Construction — 4,005 2,852 232,193 Commercial and Industrial 159 2,036 843 191,364 Credit card — 5,544 — 136,658 Other consumer — 10 — 1,055 Total $ 159 $ 25,932 $ 8,420 $ 1,649,424 December 31, 2021 Real estate: Residential $ — $ 5,612 $ 2,835 $ 398,772 Commercial — 8,566 25 556,314 Construction — 4,699 7,803 247,344 Commercial and Industrial 218 2,419 676 175,280 Credit card — 3,655 — 141,120 Other consumer — 12 — 1,033 Total $ 218 $ 24,963 $ 11,339 $ 1,519,863 Past due loans, segregated by age and class of loans, as of September 30, 2022 and December 31, 2021 were as follows: Portfolio Loans Past Due Loans Loans Total Past Current Total Accruing Non-accrual (in thousands) September 30, 2022 Real estate: Residential $ 1,238 $ 2,869 $ 4,107 $ 462,742 $ 466,849 $ — $ 3,165 Commercial — 957 957 625,073 626,030 — 1,560 Construction 843 2,852 3,695 231,350 235,045 — 2,852 Commercial and Industrial 480 634 1,114 191,093 192,207 — 843 Credit card 18,453 174 18,627 118,031 136,658 174 — Other consumer — — — 1,055 1,055 — — Total $ 21,014 $ 7,486 $ 28,500 $ 1,629,344 $ 1,657,844 $ 174 $ 8,420 December 31, 2021 Real estate: Residential $ 469 $ 2,494 $ 2,963 $ 398,644 $ 401,607 $ 72 $ 2,835 Commercial 367 25 392 555,947 556,339 — 25 Construction — 7,803 7,803 247,344 255,147 — 7,803 Commercial and Industrial 183 593 776 175,180 175,956 — 676 Credit card 19,022 10 19,032 122,088 141,120 10 — Other consumer — — — 1,033 1,033 — — Total $ 20,041 $ 10,925 $ 30,966 $ 1,500,236 $ 1,531,202 $ 82 $ 11,339 There were $1.4 million and $6 thousand of loans secured by one-to-four family residential properties in the process of foreclosure as of September 30, 2022 and December 31, 2021, respectively. Impaired portfolio loans were as follows: Impaired Portfolio Loans Unpaid Recorded Recorded Total Related (in thousands) September 30, 2022 Real estate: Residential $ 3,329 $ 3,165 $ — $ 3,165 $ — Commercial 1,643 1,560 — 1,560 — Construction 2,939 2,852 — 2,852 — Commercial and Industrial 1,028 575 268 843 159 Total $ 8,939 $ 8,152 $ 268 $ 8,420 $ 159 December 31, 2021 Real estate: Residential $ 3,022 $ 2,835 $ — $ 2,835 $ — Commercial 90 25 — 25 — Construction 7,885 7,803 — 7,803 — Commercial and Industrial 832 340 336 676 218 Total $ 11,829 $ 11,003 $ 336 $ 11,339 $ 218 The following tables summarize interest recognized on impaired loans: Interest Recognized on Impaired Portfolio Loans For the Three Months Ended September 30, 2022 For the Nine Months Ended September 30, 2022 (in thousands) Average Interest Average Interest Real estate: Residential $ 3,329 $ — $ 3,341 $ — Commercial 1,643 — 1,650 — Construction 2,939 — 2,938 — Commercial and Industrial 1,242 — 1,267 — Total $ 9,153 $ — $ 9,196 $ — Interest Recognized on Impaired Portfolio Loans For the Three Months Ended September 30, 2021 For the Nine Months Ended September 30, 2021 (in thousands) Average Interest Average Interest Real estate: Residential $ 5,222 $ 45 $ 5,334 $ 67 Commercial 90 5 90 22 Construction 7,885 127 7,779 127 Commercial and Industrial 1,056 16 1,058 49 Total $ 14,253 $ 193 $ 14,261 $ 265 Impaired portfolio loans include loans acquired on which management has recorded a nonaccretable discount. Credit quality indicators As part of the ongoing monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to the risk grade of loans, the level of classified loans, net charge-offs, nonperforming loans, and general economic conditions in the Company’s market. The Company utilizes a risk grading matrix to assign a risk grade to each of its loans. A description of the general characteristics of loans characterized as classified is as follows: Special mention A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. Special mention loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Borrowers may exhibit poor liquidity and leverage positions resulting from generally negative cash flow or negative trends in earnings. Access to alternative financing may be limited to finance companies for business borrowers and may be unavailable for commercial real estate borrowers. Substandard A substandard loan is inadequately protected by the current financial condition and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Borrowers may exhibit recent or unexpected unprofitable operations, an inadequate debt service coverage ratio, or marginal liquidity and capitalization. These loans require more intense supervision by Company management. Doubtful A doubtful loan has all the weaknesses associated with a substandard loan with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The following table presents the balances of classified loans based on the risk grade. Classified loans include Special Mention, Substandard, and Doubtful loans: Portfolio Loan Classifications (in thousands) Pass (1) Special Mention Substandard Doubtful Total September 30, 2022 Real estate: Residential $ 451,471 $ 9,751 $ 5,627 $ — $ 466,849 Commercial 618,461 6,009 1,560 — 626,030 Construction 232,193 — 2,852 — 235,045 Commercial and Industrial 186,448 4,216 1,543 — 192,207 Credit card 136,658 — — — 136,658 Other consumer 1,055 — — — 1,055 Portfolio loans receivable, gross $ 1,626,286 $ 19,976 $ 11,582 $ — $ 1,657,844 December 31, 2021 Real estate: Residential $ 394,488 $ 2,540 $ 4,579 $ — $ 401,607 Commercial 548,244 8,070 25 — 556,339 Construction 243,848 3,496 7,803 — 255,147 Commercial and Industrial 164,066 10,417 1,473 — 175,956 Credit card 141,120 — — — 141,120 Other consumer 1,033 — — — 1,033 Portfolio loans receivable, gross $ 1,492,799 $ 24,523 $ 13,880 $ — $ 1,531,202 ________________________ (1) Pass includes loans graded exceptional, very good, good, satisfactory and pass/watch, in addition to credit cards and consumer credits that are not individually graded. Impaired loans also include certain loans that have been modified in TDRs where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after confirmation of the borrower’s sustained repayment performance for a reasonable period, generally six months. Modifications such as payment deferrals through September 30, 2022 have been short term in nature and are included in the population of loans deferred and have not impacted TDRs. The status of TDRs is as follows: Troubled Debt Restructurings (in thousands) Number of Recorded Investment September 30, 2022 Performing Nonperforming Total Real estate: Residential 4 $ — $ 437 $ 437 Commercial and Industrial 1 — 70 70 Total 5 $ — $ 507 $ 507 December 31, 2021 Real estate: Residential 4 $ — $ 450 $ 450 Commercial and Industrial 1 — 83 83 Total 5 $ — $ 533 $ 533 During the three and nine months ended September 30, 2022 the Company did not have any new TDRs and no TDRs defaulted during the same periods. There were no new TDRs added during the three months ended September 30, 2021. There was one new residential TDR during the nine months ended September 30, 2021 for $319 thousand in which the borrower was granted a rate reduction and payment recast. There was one commercial and industrial TDR that was paid off during the nine months ended September 30, 2021 for $200 thousand. Outstanding loan commitments were as follows: Loan Commitments (in thousands) September 30, 2022 December 31, 2021 Unused lines of credit Real Estate: Residential $ 24,997 $ 15,747 Residential - Home Equity 39,957 37,640 Commercial 33,382 17,225 Construction 76,034 118,518 Commercial and Industrial 48,184 45,135 Credit card (1) 119,680 123,874 Other consumer 274 2,247 Total $ 342,508 $ 360,386 Commitments to originate residential loans held for sale $ — $ 1,385 Letters of credit $ 5,085 $ 5,105 ________________________ (1) Outstanding loan commitments in the credit card portfolio include $114.5 million and $121.7 million in secured balances as of September 30, 2022 and December 31, 2021, respectively. Lines of credit are agreements to lend to a customer as long as there is no violation of any condition of the contract. Lines of credit generally have variable interest rates. Such lines do not represent future cash requirements because it is unlikely that all customers will, at any given time, draw upon their lines in full. Loan commitments generally have variable interest rates, fixed expiration dates, and may require payment of a fee. The Company's maximum exposure to credit loss in the event of nonperformance by the customer is the contractual amount of the credit commitment. Loan commitments and lines of credit are generally made on the same terms, including with regard to collateral, as outstanding loans. Management is not aware of any accounting loss to be incurred by funding these loan commitments. The Company maintains an estimated reserve for off balance sheet items such as unfunded lines of credit, which is reflected in other liabilities, with increases or decreases in the reserve being charged to or released from operating expense. Activity for this account is as follows for the periods presented: Off Balance Sheet Reserve For the Three Months Ended For the Nine Months Ended (in thousands) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Balance at beginning of period $ 1,631 $ 1,745 $ 1,736 $ 1,775 Provision for (reversal of) off balance sheet credit commitments 51 (9) (54) (39) Balance at end of period $ 1,682 $ 1,736 $ 1,682 $ 1,736 The Company makes representations and warranties that loans sold to investors meet the investors’ program guidelines and that the information provided by the borrowers is accurate and complete. In the event of a default on a loan sold, the investor may have the right to make a claim for losses due to document deficiencies, program non-compliance, early payment default, and fraud or borrower misrepresentations. The Company maintains a reserve for potential losses on mortgage loans sold, which is reflected in other liabilities, with changes being charged to or released from operating expense. Activity in this reserve is as follows for the periods presented: Mortgage Loan Put-back Reserve For the Three Months Ended For the Nine Months Ended (in thousands) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Balance at beginning of period $ 1,166 $ 1,369 $ 1,164 $ 1,160 Provision for mortgage loan put backs 4 70 6 279 Balance at end of period $ 1,170 $ 1,439 $ 1,170 $ 1,439

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Capital Bancorp, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 6 - Derivative Financial Instruments As part of its mortgage banking activities, the Company enters into interest rate lock commitments, which are commitments to originate loans whereby the interest rate on the loan is determined prior to funding and customers have locked into that interest rate. The Company then locks the loan and rate in with an investor and commits to deliver the loan if settlement occurs (Best Efforts). Certain loans under rate lock commitments are covered under forward sales contracts. Forward sales contracts are recorded at fair value with changes in fair value recorded in mortgage banking revenue. Interest rate lock commitments and forward sales contracts are considered to be derivatives. The market value of interest rate lock commitments and best efforts contracts are not readily ascertainable with precision because they are not actively traded in stand-alone markets. The Company determines the fair value of rate lock commitments by estimating the fair value of the underlying asset, which is impacted by current interest rates and takes into consideration the probability that the rate lock commitments will close or will be funded. The following table reports the commitment and fair value amounts on the outstanding derivatives: Derivatives (in thousands) September 30, 2022 December 31, 2021 Notional amount of open forward sales agreements $ 4,250 $ 22,500 Fair value of open forward delivery sales agreements 44 (16) Notional amount of interest rate lock commitments 3,689 18,053 Fair value of interest rate lock commitments (31) 34

Leases

Leases	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Leases	Leases The Company’s primary leasing activities relate to certain real estate leases entered into in support of the Company’s branch operations and back office operations. The Company leases four of its full service branches and four other locations for corporate/administration activities, operations, and loan production. All property leases under lease agreements have been been designated as operating leases. The Company does not have leases designated as finance leases. The Company determines if an arrangement is a lease at inception. Operating lease right-of-use (“ROU”) assets are included in premises and equipment, and operating lease liabilities are included as other liabilities in the consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The historical weighted average discount rate was 2.01% at September 30, 2022 and 2.23% at December 31, 2021. The operating lease ROU asset also includes any lease pre-payments. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which the Company has elected to account for separately as the non-lease component amounts are readily determinable under most leases. As of September 30, 2022, the Company’s net lease ROU assets and related lease liabilities were $2.4 million and $2.7 million, respectively, compared to December 31, 2021 balances of $2.5 million of ROU assets and $2.7 million of lease liabilities, and have remaining terms ranging from 1 - 6 years, including extension options that the Company is reasonably certain will be exercised. As of September 30, 2022, the Company had not entered into any material leases that have not yet commenced. The Company’s lease information is summarized as follows: Leases (in thousands) September 30, 2022 December 31, 2021 Lease Right of Use Asset: Lease asset $ 5,240 $ 5,364 Less: Accumulated amortization (2,841) (2,898) Net lease asset $ 2,399 $ 2,466 Lease Liability: Lease liability $ 5,396 5,535 Less: Accumulated amortization (2,732) (2,800) Lease liability $ 2,664 $ 2,735 Future minimum payments for operating leases with initial or remaining terms of one year or more are as follows: Lease Payment Obligations (in thousands) September 30, 2022 Amounts due in: 2022 277 2023 1,091 2024 721 2025 259 2026 and thereafter 392 Total future lease payments 2,740 Discount of cash flows (76) Present value of net future lease payments $ 2,664

Fair Value

Fair Value	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value	Fair Value Generally accepted accounting principles define fair value, establish a framework for measuring fair value, recommend disclosures about fair value, and establish a hierarchy for determining fair value measurement. The hierarchy includes three levels and is based upon the valuation techniques used to measure assets and liabilities. The three levels are as follows: Level 1 - Inputs to the valuation method are quoted prices (unadjusted) for identical assets or liabilities in active markets; Level 2 - Inputs to the valuation method include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and Level 3 - Inputs to the valuation method are unobservable and significant to the fair value measurement. Fair value measurements on a recurring basis Investment securities available for sale - The fair values of the Company's investment securities available for sale are provided by an independent pricing service. The fair values of the Company's securities are determined based on quoted prices for similar securities under Level 2 inputs. Marketable equity securities - The fair value of marketable equity securities is provided by an independent pricing service. The fair value is determined based on quoted prices for similar securities using Level 1 inputs. Loans held for sale - The fair value of loans held for sale is determined using Level 2 inputs of quoted prices for a similar asset, adjusted for specific attributes of that loan. Derivative financial instruments - Derivative instruments used to hedge residential mortgage loans held for sale and the related interest rate lock commitments include forward commitments to sell mortgage loans and are reported at fair value utilizing Level 2 inputs. The fair values of derivative financial instruments are based on derivative market data inputs as of the valuation date and the underlying value of mortgage loans for rate lock commitments. The Company has categorized its financial instruments measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021 as follows: Fair Value of Financial Instruments (in thousands) September 30, 2022 Total Level 1 Inputs Level 2 Inputs Level 3 Inputs Investment securities available for sale U.S. Treasuries $ 214,940 $ 214,940 $ — $ — Municipal 8,087 — 8,087 — Corporate 4,648 — 4,648 — Asset-backed securities 8,222 — 8,222 — Mortgage-backed securities 33,723 — 33,723 — Total $ 269,620 $ 214,940 $ 54,680 $ — Marketable equity securities $ 232 $ 232 $ — $ — Loans held for sale $ 6,875 $ — $ 6,875 $ — Derivative assets $ 44 $ — $ 44 $ — Derivative liabilities $ 31 $ — $ 31 $ — December 31, 2021 Investment securities available for sale U.S. Treasuries $ 131,001 $ 131,001 $ — $ — Municipal 10,474 — 10,474 — Corporate 4,934 — 4,934 — Asset-backed securities 10,140 — 10,140 — Mortgage-backed securities 27,906 — 27,906 — Total $ 184,455 $ 131,001 $ 53,454 $ — Marketable equity securities $ 245 $ 245 $ — $ — Loans held for sale $ 15,989 $ — $ 15,989 $ — Derivative assets $ 34 $ — $ 34 $ — Derivative liabilities $ 16 $ — $ 16 $ — Financial instruments recorded using FASB ASC 825-10 Under FASB ASC 825-10, the Company may elect to report most financial instruments and certain other items at fair value on an instrument-by-instrument basis with changes in fair value reported in net income. After the initial adoption, the election is made at the acquisition of an eligible financial asset, financial liability or firm commitment or when certain specified reconsideration events occur. The fair value election, with respect to an item, may not be revoked once an election is made. The following table reflects the difference between the fair value carrying amount of loans held for sale, measured at fair value under FASB ASC 825-10, and the aggregate unpaid principal amount the Company is contractually entitled to receive at maturity: Fair Value of Loans Held for Sale (in thousands) September 30, 2022 December 31, 2021 Aggregate fair value $ 6,875 $ 15,989 Contractual principal 6,237 14,504 Difference $ 638 $ 1,485 The Company has elected to account for loans held for sale at fair value to eliminate the mismatch that would occur by recording changes in market value on derivative instruments used to hedge loans held for sale while carrying the loans at the lower of cost or market. Fair value measurements on a nonrecurring basis Impaired loans - The Company has measured impairment generally based on the fair value of the loan's collateral and discounted cash flow analysis. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values. As of September 30, 2022 and December 31, 2021, the fair values consist of loan balances of $8.4 million and $11.3 million, with specific reserves of $159 thousand and $218 thousand, respectively. Foreclosed real estate - The Company's foreclosed real estate is measured at fair value less cost to sell. Fair value was determined based on offers and/or appraisals. Cost to sell the real estate was based on standard market factors. The Company has categorized its foreclosed real estate as Level 3. The Company has categorized its impaired loans and foreclosed real estate as follows: Fair Value of Impaired Loans and Foreclosed Real Estate (in thousands) September 30, 2022 December 31, 2021 Impaired loans Level 3 inputs $ 8,261 $ 11,121 Total $ 8,261 $ 11,121 Foreclosed real estate Level 3 inputs $ — $ 86 Total $ — $ 86 The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at September 30, 2022 and December 31, 2021: Unobservable Inputs Valuation Technique Unobservable Inputs Range of Inputs Impaired Loans Appraised Value/Discounted Cash Flows Discounts to appraisals or cash flows for estimated holding and/or selling costs 11 to 25% Foreclosed Real Estate Appraised Value/Comparable Sales Discounts to appraisals for estimated holding and/or selling costs 11 to 25% Fair value of financial instruments Fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practical to estimate the value is based upon the characteristics of the instruments and relevant market information. Financial instruments include cash, evidence of ownership in an entity, or contracts that convey or impose on an entity the contractual right or obligation to either receive or deliver cash for another financial instrument. The information used to determine fair value is highly subjective and judgmental in nature and, therefore, the results are imprecise. Subjective factors include, among other things, estimates of cash flows, risk characteristics, credit quality, and interest rates, all of which are subject to change. Since the fair value is estimated as of the balance sheet date, the amounts that will actually be realized or paid upon settlement or maturity on these various instruments could be significantly different. The fair value of the Company’s loan portfolio includes a credit risk assumption in the determination of the fair value of its loans. This credit risk assumption is intended to approximate the fair value that a market participant would realize in a hypothetical orderly transaction. The Company’s loan portfolio is initially fair valued using a segmented approach. The Company divides its loan portfolio into the following categories: variable rate loans, impaired loans, and all other loans. The results are then adjusted to account for credit risk as described above. However, under the new guidance, the Company believes a further credit risk discount must be applied through the use of a discounted cash flow model to compensate for illiquidity risk, based on certain assumptions included within the discounted cash flow model, primarily the use of discount rates that better capture inherent credit risk over the lifetime of a loan. This consideration of enhanced credit risk provides an estimated exit price for the Company’s loan portfolio. For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values approximate carrying values. Fair values for impaired loans are estimated using discounted cash flow models or based on the fair value of the underlying collateral. The fair value of cash and cash equivalents and investments in restricted stocks is the carrying amount. Restricted stock includes equity of the Federal Reserve and other banker’s banks. The fair value of noninterest bearing deposits and securities sold under agreements to repurchase is the carrying amount. The fair value of checking, savings, and money market deposits is the amount payable on demand at the reporting date. Fair value of fixed maturity term accounts and individual retirement accounts is estimated using rates currently offered for accounts of similar remaining maturities. The fair value of certificates of deposit in other financial institutions is estimated based on interest rates currently offered for deposits of similar remaining maturities. The fair value of borrowings is estimated by discounting the value of contractual cash flows using current market rates for borrowings with similar terms and remaining maturities. The fair value of outstanding loan commitments, unused lines of credit, and letters of credit are not included in the table since the carrying value generally approximates fair value. These instruments generate fees that approximate those currently charged to originate similar commitments. The table below presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments. Fair Value of Selected Financial Instruments September 30, 2022 December 31, 2021 (in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Level 1 Cash and due from banks $ 14,774 $ 14,774 $ 42,914 $ 42,914 Interest bearing deposits at other financial institutions 20,867 20,867 136,824 136,824 Marketable equity securities 232 232 245 245 Federal funds sold 1,421 1,421 3,657 3,657 Level 3 Loans receivable, net (1) $ 1,624,572 $ 1,572,842 $ 1,607,086 $ 1,598,228 Restricted investments 3,627 3,627 3,498 3,498 Financial liabilities Level 1 Noninterest bearing deposits $ 806,033 $ 806,033 $ 787,650 $ 787,650 Level 3 Interest bearing deposits $ 931,558 $ 931,882 $ 1,009,487 $ 1,011,121 FHLB advances and other borrowed funds 34,062 31,116 34,062 34,263 ________________________ (1) Includes SBA-PPP loans and portfolio loans.

Segments

Segments	9 Months Ended
	Sep. 30, 2022
Segment Reporting [Abstract]
Segments	The Company’s reportable segments represent business units with discrete financial information whose results are regularly reviewed by management. The four segments include Commercial Banking, Capital Bank Home Loans (the Company’s mortgage loan division), OpenSky ® (the Company’s credit card division) and the Corporate Office. The following schedule presents financial information for each reportable segment at September 30, 2022 and September 30, 2021. Segments For the Three Months Ended September 30, 2022 (in thousands) Commercial Bank CBHL OpenSky ® Corporate (2) Eliminations Consolidated Interest income $ 20,382 $ 102 $ 17,103 $ 812 $ (59) $ 38,340 Interest expense 1,449 40 — 233 (59) 1,663 Net interest income 18,933 62 17,103 579 — 36,677 Provision (release of provision) for loan losses (980) — 2,240 — — 1,260 Net interest income after provision 19,913 62 14,863 579 — 35,417 Noninterest income 468 1,115 5,524 1 — 7,108 Noninterest expense (1) 13,798 2,017 12,101 178 — 28,094 Net income (loss) before taxes $ 6,583 $ (840) $ 8,286 $ 402 $ — $ 14,431 Total assets $ 1,823,049 $ 7,664 $ 128,842 $ 234,731 $ (184,928) $ 2,009,358 For the Three Months Ended September 30, 2021 Interest income $ 17,109 $ 248 $ 15,635 $ 574 $ (38) $ 33,528 Interest expense 1,160 177 — 170 (38) 1,469 Net interest income 15,949 71 15,635 404 — 32,059 Provision for loan losses — — 975 — — 975 Net interest income after provision 15,949 71 14,660 404 — 31,084 Noninterest income 559 4,484 7,553 1 — 12,597 Noninterest expense (1) 12,073 2,775 13,677 102 — 28,627 Net income before taxes $ 4,435 $ 1,780 $ 8,536 $ 303 $ — $ 15,054 Total assets $ 1,956,340 $ 36,791 $ 135,612 $ 209,070 $ (168,257) $ 2,169,556 ________________________ (1) Noninterest expense includes $6.6 million and $9.4 million in data processing expense in OpenSky’s ® segment for the three months ended September 30, 2022 and 2021, respectively. (2) The Corporate segment invests idle cash in revenue producing assets including interest-bearing cash accounts, loan participations and other appropriate investments for the Company. For the Nine Months Ended September 30, 2022 (in thousands) Commercial Bank CBHL OpenSky ® Corporate (2) Eliminations Consolidated Interest income $ 57,794 $ 347 $ 48,823 $ 2,457 $ (123) $ 109,298 Interest expense 3,255 185 — 573 (123) 3,890 Net interest income 54,539 162 48,823 1,884 — 105,408 Provision (release of provision) for loan losses (980) — 5,227 — — 4,247 Net interest income after provision 55,519 162 43,596 1,884 — 101,161 Noninterest income 1,571 4,580 17,658 2 — 23,811 Noninterest expense (1) 38,741 6,364 36,923 351 — 82,379 Net income (loss) before taxes $ 18,349 $ (1,622) $ 24,331 $ 1,535 $ — $ 42,593 Total assets $ 1,823,049 $ 7,664 $ 128,842 $ 234,731 $ (184,928) $ 2,009,358 For the Nine Months Ended September 30, 2021 Interest income $ 51,969 $ 1,037 $ 34,944 $ 1,604 $ (99) $ 89,455 Interest expense 4,285 745 — 502 (99) 5,433 Net interest income 47,684 292 34,944 1,102 — 84,022 Provision for loan losses 433 — 1,756 70 — 2,259 Net interest income after provision 47,251 292 33,188 1,032 — 81,763 Noninterest income 1,212 17,529 21,208 43 — 39,992 Noninterest expense (1) 31,962 9,941 39,379 290 — 81,572 Net income before taxes $ 16,501 $ 7,880 $ 15,017 $ 785 $ — $ 40,183 Total assets $ 1,956,340 $ 36,791 $ 135,612 $ 209,070 $ (168,257) $ 2,169,556 ________________________ (1) Noninterest expense includes $20.9 million and $27.3 million in data processing expense in OpenSky’s ® segment for the nine months ended September 30, 2022 and 2021, respectively. (2) The Corporate segment invests idle cash in revenue producing assets including interest-bearing cash accounts, loan participations and other appropriate investments for the Company.

Nature of Business and Basis _2

Nature of Business and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Nature of operations	Nature of operations: Capital Bancorp, Inc. is a Maryland corporation and the bank holding company (the “Company”) for Capital Bank, N.A. (the “Bank”). The Company's primary operations are conducted by the Bank, which operates branches in Rockville and Columbia, Maryland; Reston, Virginia; and the District of Columbia. The Bank is principally engaged in the business of investing in commercial, real estate, and credit card loans and attracting deposits. The Company originates residential mortgages for sale in the secondary market through Capital Bank Home Loans (“CBHL”), the Bank’s residential mortgage banking arm, and issues credit cards through OpenSky ® , a secured, digitally-driven nationwide credit card platform. The Company formed Church Street Capital, LLC (“Church Street Capital”) in 2014 to provide short-term secured real estate financing to Washington, D.C. area investors and developers that may not meet all Bank credit criteria. At September 30, 2022, Church Street Capital had loans totaling $7.1 million. In addition, the Company owns all of the stock of Capital Bancorp (MD) Statutory Trust I (the “Trust”). The Trust is a special purpose non-consolidated entity organized for the sole purpose of issuing trust preferred securities.
Basis of presentation	Basis of presentation: The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with rules and regulations of the Securities and Exchange Commission (“SEC”) and include the activity of the Company and its wholly-owned subsidiaries, the Bank and Church Street Capital. The statements do not include all of the information and footnotes required by GAAP for complete financials statements. All adjustments have been made which, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. Such adjustments are all of a normal and recurring nature. All significant inter-company accounts and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the full year. These consolidated financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto as of December 31, 2021, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021. The Company reports its activities as four business segments. In determining the appropriateness of segment definition, the Company considers components of the business about which financial information is available and regularly evaluated relative to resource allocation and performance assessment. Risks and uncertainties The Company has been, and may continue to be, impacted by the coronavirus disease 2019 pandemic (“COVID-19”). The direct impacts of COVID-19 appear to be waning, but the pandemic’s residual impact manifests itself in supply chain and labor market imbalances and ongoing inflationary pressures. To address the economic impact of the pandemic in the U.S., multiple stimulus packages have been enacted to provide economic relief to individuals and businesses, including the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), which established the Small Business Administration Paycheck Protection Program (“SBA-PPP”), the American Rescue Plan Act of 2021 which was enacted in March 2021, and the Inflation Reduction Act of 2022 which was signed into law in August 2022. The Company remains watchful of COVID-19 surges and new variants and continues to evaluate processes in place to execute our business continuity plan and promote the health and safety of our employees. The future direct and indirect impact of the pandemic on the Company’s businesses, results of operations and financial condition continues to remain uncertain as inflationary concerns remain elevated due to continuing supply and demand imbalances associated with the pandemic. Should current economic conditions deteriorate, the macroeconomic environment could have an adverse effect on our businesses, results of operations and financial condition.
Cash and cash equivalents	Cash and cash equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from financial institutions, interest-bearing deposits with financial institutions and federal funds sold. Generally, federal funds are sold for one-day periods.
Investment securities	Investment securities Investment securities are classified as available for sale and carried at fair value with unrealized gains and losses included in stockholders’ equity on an after-tax basis. Premiums and discounts on investment securities are amortized or accreted using the interest method. Changes in the fair value of debt securities available for sale are included in stockholders’ equity as unrealized gains and losses, net of the related tax effect. Unrealized losses are periodically reviewed to determine whether the loss represents an other than temporary impairment. Any unrealized losses judged to be other than a temporary impairment are charged to income.
Marketable equity securities	Marketable equity securitiesMarketable equity securities are carried at fair value with realized gains and losses included in earnings. Premiums and discounts on investment securities are amortized or accreted using the interest method. Changes in the fair value of equity securities are also included in earnings as gain or loss on marketable equity securities.
Loans held for sale	Loans held for sale Mortgage loans originated and intended for sale are recorded at fair value, determined individually, as of the balance sheet date. Fair value is determined based on outstanding investor commitments, or in the absence of such commitments, based on current investor yield requirements. Gains and losses on loan sales are determined by the specific-identification method. The Company’s current practice is to sell residential mortgage loans on a servicing released basis. Interest on loans held for sale is credited to income based on the principal amounts outstanding. Upon sale and delivery, loans are legally isolated from the Company and the Company has no ability to restrict or constrain the ability of third‑party investors to pledge or exchange the mortgage loans. The Company does not have the entitlement or ability to repurchase the mortgage loans or unilaterally cause third‑party investors to put the mortgage loans back to the Company. Unrealized and realized gains on loan sales are determined using the specific-identification method and are recognized through mortgage banking activity in the Consolidated Statements of Income. The Company elects to measure loans held for sale at fair value to better align reported results with the underlying economic changes in value of the loans on the Company’s balance sheet.
Small Business Administration Paycheck Protection Program	Small Business Administration Paycheck Protection Program The SBA-PPP is one of the centerpieces of the CARES Act which was passed on March 27, 2020 in response to the outbreak of COVID-19 and was supplemented with subsequent legislation. Overseen by the United States (“U.S.”) Treasury Department, the SBA-PPP offered cash-flow assistance to nonprofit and small business employers through guaranteed loans. Borrowers are eligible for forgiveness of principal and accrued interest on SBA-PPP loans to the extent that the proceeds are used to cover eligible payroll costs, interest costs, rent, and utility costs over a period between eight and twenty four weeks after the loan is made as long as the borrower retains its employees and their compensation levels. The CARES Act authorized the SBA to fully guarantee these loans. On December 27, 2020, the Consolidated Appropriations Act, 2021 (“CAA”) was signed into law. The CAA provides several amendments to the SBA-PPP, including additional funding for the first and second draws of PPP loans up to March 13, 2021. On March 30, 2021, the PPP Extension Act of 2021 was signed into law, which extended the program to May 31, 2021.
Loans and the allowance for loan losses	Loans and the allowance for loan losses Loans are stated at the principal amount outstanding, adjusted for deferred origination fees and costs, discounts on loans acquired, and the allowance for loan losses. Interest is accrued based on the loan principal balances and stated interest rates. Origination fees and costs are recognized as an adjustment to the related loan yield using approximate interest methods. The Company discontinues the accrual of interest at the earlier of when any portion of the principal and/or interest is 90 days past due, or when it is probable that not all principal and interest payments will be collected, and collateral is insufficient to discharge the debt in full. Generally, interest payments on nonaccrual loans are recorded as a reduction of the principal balance. Loans are considered impaired when, based on current information, management believes the Company will not collect all principal and interest payments according to contractual terms. Generally, loans are reviewed for impairment when the risk grade for a loan is downgraded to a classified asset category. The loans are evaluated for appropriate classification, accrual, impairment, and troubled debt restructure (“TDR”) status. If collection of principal is evaluated as doubtful, all payments are applied to principal. A modification of a loan is considered a TDR when a borrower is experiencing financial difficulty and the modification constitutes a concession; however, the CARES Act provided financial institutions optional temporary relief from TDR and impairment accounting for certain loan modifications related to the COVID-19 pandemic. Under Section 4013 of the CARES Act, banks may suspend (1) the requirement under GAAP for certain modifications that would otherwise be categorized as a TDR and (2) any determination that such loan modifications would be considered a TDR, including the related impairment for accounting purposes. To be eligible, each loan modification must be (1) related to the COVID-19 event; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 31, 2020. The December 31, 2020 deadline was subsequently extended to January 1, 2022, by the CAA. As of September 30, 2022 all of our COVID-19 deferred loans had returned to original payment terms while the outstanding balance at September 30, 2021 was $7.3 million. All other short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not TDRs. This includes short-term modifications such as payment deferrals, fee waivers, extensions of repayment terms, and other delays in payment that are deemed insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. Loans are generally charged-off in part or in full when management determines the loan to be uncollectible. Factors for charge-off that may be considered include: repayments deemed to be extended out beyond reasonable time frames, client bankruptcy and lack of assets, and/or collateral deficiencies. The allowance for loan losses is estimated to adequately provide for probable future losses on existing loans. The allowance consists of specific and general components. For loans that are classified as impaired, an allowance is established when the collateral value, if the loan is collateral dependent, or the discounted cash flows of the impaired loan is lower than the carrying value of that loan. The general component covers pools of nonclassified loans and is based on historical loss experience adjusted with qualitative factors such as: trends in volume and terms of loans; levels of, and trends in, delinquencies and non-accruals; effects of any changes in lending policies, experience, ability and depth of management; national and local economic trends and conditions; commitments and concentrations of credit; changes in the quality of the Company’s loan review system; and the volume of loans with identified incomplete financial documentation. Actual loan performance may differ materially from those estimates. A loss is recognized as a charge to the allowance when management believes that collection of the loan is unlikely. Collections of loans previously charged off are added to the allowance at the time of recovery. The Company determines the allowance for loan losses based on the accumulation of various components that are calculated independently in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 450 for pools of loans, and ASC 310 for TDRs and for individually evaluated loans. The process for determining an appropriate allowance for loan losses is based on a comprehensive and consistently applied analysis of the loan portfolio. The analysis considers all significant factors that affect the collectibility of the portfolio and supports the credit losses estimated by this process. It is important to recognize that the related process, methodology, and underlying assumptions require a substantial degree of judgment. Additional disclosure on the allowance for loan losses, and qualitative factors can be found in Part II, Item 1A - Risk Factors and Note 5 - Portfolio Loans Receivable . The allowance for loan losses for SBA-PPP loans was separately evaluated given the explicit government guarantee. This analysis, which incorporated historical experience with similar SBA guarantees and underwriting, concluded that the likelihood of loss was remote and therefore no allowance for loan losses was assigned to these loans.
Premises and equipment	Premises and equipment Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related property, generally over two
Leases	Leases The Company accounts for leases according to ASU 2016-02, Leases (Topic 842), and applies a right-of-use (“ROU”) model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset and a liability to make lease payments. The Company elected to apply the package of practical expedients permitting entities to not reassess: 1) whether any expired or existing contracts are or contain leases; 2) the lease classification for any expired or existing leases; and 3) initial direct costs for any existing leases. Additionally, as provided by ASU 2016-02, the Company elected not to apply the recognition requirements of ASC 842 to short-term leases, defined as leases with a term of 12 months or less, and to recognize the lease payments in net income on short-term leases on a straight-line basis over the lease term.
Derivative financial instruments	Derivative financial instruments The Company enters into commitments to fund residential mortgage loans (interest rate locks) with the intention of selling them in the secondary market. The Company also enters into forward sales agreements for certain funded loans and loan commitments. The Company records unfunded commitments intended for loans held for sale and forward sales agreements at fair value with changes in fair value recorded as a component of mortgage banking revenue. Loans originated and intended for sale in the secondary market are carried at fair value. For pipeline loans which are not pre-sold to an investor, the Company endeavors to manage the interest rate risk on rate lock commitments by entering into forward sale contracts, whereby the Company obtains the right to deliver securities to investors in the future at a specified price. Such contracts are accounted for as derivatives and are recorded at fair value as derivative assets or liabilities, with changes in fair value recorded in mortgage banking revenue. The Company accounts for derivative instruments and hedging activities according to guidelines established in ASC 815-10, Accounting for Derivative Instruments and Hedging Activities , as amended. The Company recognizes all derivatives as either assets or liabilities on the balance sheet and measures those instruments at fair value. Changes in fair value of derivatives designated and accounted for as cash
Fair value measurements	Fair value measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. The degree of management judgment involved in determining the fair value of a financial instrument is dependent upon the availability of quoted market prices or observable market inputs. For financial instruments that are traded actively and have quoted market prices or observable market inputs, there is minimal subjectivity involved in measuring fair value. However, when quoted market prices or observable market inputs are not fully available, significant management judgment may be necessary to estimate fair value. In developing our fair value estimates, we endeavor to maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy defines Level 1 valuations as those based on quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 valuations include inputs based on quoted prices for similar assets or liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 valuations are based on at least one significant assumption not observable in the market, or significant management judgment or estimation, some of which may be internally developed.
Income taxes	Income taxesDeferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are recognized when it is deemed more likely than not that the benefits of such deferred income taxes will be realized.
Earnings per share	Earnings per share:Earnings per share is computed by dividing net income available to common stockholders by the weighted average number of shares outstanding. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding, adjusted for the dilutive effect of stock options and restricted stock using the treasury stock method.
Comprehensive loss	Comprehensive loss: The Company reports as comprehensive loss all changes in stockholders' equity during the year from sources other than stockholders. Other comprehensive loss refers to all components (income, expenses, gains, and losses) of comprehensive loss that are excluded from net income.
Recently issued accounting pronouncements	Recently issued accounting pronouncements: In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments . ASU 2016-13 introduces guidance that changes the accounting for loan losses and modifies the impairment model for certain debt securities. This ASU introduced a new model known as CECL. CECL applies to financial assets subject to credit losses and measured at amortized cost, as well as a number of off-balance sheet credit exposures. Examples include loans, loan commitments, standby letters of credit, net investments in leases recognized by a lessor and HTM debt securities. The CECL model requires an entity to estimate credit losses expected over the life of an exposure, considering relevant information about historical experience, current conditions and reasonable and supportable forecasts. ASU 2016-13 offers a simplified accounting model for purchased financial assets with more than insignificant credit deterioration since their origination. Additionally, ASU 2016-13 also modifies certain provisions of the current other-than-temporary impairment model for AFS debt securities. Credit losses on AFS debt securities will be restricted to the difference between the security’s amortized cost basis and its fair value. In April 2019, the FASB issued ASU 2019-04 which elaborates on the treatment of accrued interest when measuring credit losses. To meet disclosure requirements we elected a practical expedient to disclose separately the total amount of accrued interest included in the amortized cost basis as a single balance. ASU 2019-04 explains that expected recoveries of amounts previously written off and expected to be written off should be included in the valuation account and should not exceed the aggregate of amounts previously written off and expected to be written off by the entity. In addition, for collateral dependent financial assets, the amendments clarify that an allowance for credit losses that is added to the amortized cost basis of the financial asset(s) should not exceed amounts previously written off. In November 2019, the FASB issued ASU 2019-10, which delayed the effective date of ASU 2016-13 to fiscal years beginning after December 15, 2022 for smaller reporting companies. While early adoption was permitted, the Company did not elect that option. The Company expects the provisions of this standard to impact the Company’s consolidated financial statements and, in particular, the level of the reserve for loan losses. The Company engaged a consultant to assist with the implementation of this ASU and has completed various milestones so as to ensure timely implementation. The Company plans to refine assumptions, complete model validation and identify expected financial statement impact over the next quarter. The Company plans to apply the amendments to the ASU through a cumulative-effect adjustment to retained earnings or prospectively for purchased financial assets with credit deterioration as of the beginning of the year of adoption. While the adoption of this standard is expected to impact the Company's financial statements, management continues to work on refining the estimate of the impact that will be made in the first quarter of 2023. In March 2020, the FASB released ASU 2020-04 - Reference Rate Reform, Topic 848, which provides temporary guidance to ease the potential accounting burden in accounting for, or recognizing the effects from, reference rate reform on financial reporting. The new standard is a result of London Interbank Offered Rate (“LIBOR”) likely being discontinued as an available benchmark rate. The standard is elective and provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference LIBOR, or another reference rate expected to be discontinued. The amendments in the update are effective for all entities between March 12, 2020 and December 31, 2022. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements. In March 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation (“agencies”), issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by COVID-19. The interagency statement was effective immediately and impacted accounting for loan modifications. Under ASC 310-40, “Receivables - Troubled Debt Restructurings by Creditors,” a restructuring of debt constitutes a TDR if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The agencies confirmed with the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. Such modifications include short-term (e.g., six months) modifications that include payment deferrals of (i) principal and interest, (ii) interest only and (iii) principal only, fee waivers, extensions of repayment terms, and other delays in payment that are deemed insignificant. Borrowers considered current were those that were less than 30 days past due on their contractual payments at the time a modification program was implemented. As of September 30, 2022, the Company had offered payment deferrals for commercial and consumer customers for up to six months. The loan modifications offered to borrowers provided the borrower with payment relief in the form of reduced or deferred payments for up to 90 days (six months in selected instances) during which time interest is continuing to accrue. In February 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The ASU eliminates the accounting guidance for troubled debt restructurings by creditors and enhances disclosure requirements for certain loan re-financings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendments also add requirements to disclose current-period gross write-offs by year of origination for financing receivables. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including in an interim period. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company's financial position, results of operations or cash flows.
Reclassifications	Reclassifications: Certain reclassifications have been made to amounts reported in prior periods to conform to the current period presentation. The reclassifications had no material effect on net income or total stockholders' equity.
Subsequent events	Subsequent events: Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events through the date the financial statements were available to be issued and no subsequent events occurred requiring accrual or disclosure.

Nature of Business and Basis _3

Nature of Business and Basis of Presentation (Tables)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Schedule of Accumulated Other Comprehensive Loss	Information concerning the Company's accumulated other comprehensive loss as of September 30, 2022 and December 31, 2021 is as follows: (in thousands) September 30, 2022 December 31, 2021 Unrealized losses on securities available for sale $ (23,530) $ (1,504) Deferred tax benefit 5,947 428 Total accumulated comprehensive loss $ (17,583) $ (1,076)

Investment Securities (Tables)

Investment Securities (Tables)	9 Months Ended
	Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Unrealized Gain (Loss) on Investments	The amortized cost and estimated fair value of investment securities at September 30, 2022 and December 31, 2021 are summarized as follows: Investment Securities Available for Sale (in thousands) September 30, 2022 Amortized Unrealized Unrealized Fair Available for sale U.S. Treasuries $ 232,406 $ — $ (17,466) $ 214,940 Municipal 10,817 — (2,730) 8,087 Corporate 5,000 — (352) 4,648 Asset-backed securities 8,323 — (101) 8,222 Mortgage-backed securities 36,604 — (2,881) 33,723 Total $ 293,150 $ — $ (23,530) $ 269,620 December 31, 2021 Available for sale U.S. Treasuries $ 132,452 $ 45 $ (1,496) $ 131,001 Municipal 10,825 43 (394) 10,474 Corporate 5,000 — (66) 4,934 Asset-backed securities 10,093 59 (12) 10,140 Mortgage-backed securities 27,589 514 (197) 27,906 Total $ 185,959 $ 661 $ (2,165) $ 184,455
Schedule of Investment Portfolio in Continuous Unrealized Loss Position, Fair Value	Information related to unrealized losses in the investment portfolio as of September 30, 2022 and December 31, 2021 is summarized as follows: Investment Securities Unrealized Losses (in thousands) Less than 12 months 12 months or longer Total September 30, 2022 Fair Unrealized Fair Unrealized Fair Unrealized U.S. Treasuries $ 116,078 $ (4,968) $ 98,862 $ (12,498) $ 214,940 $ (17,466) Municipal 1,412 (248) 6,675 (2,482) 8,087 (2,730) Corporate — — 4,648 (352) 4,648 (352) Asset-backed securities 6,460 (78) 1,762 (23) 8,222 (101) Mortgage-backed securities 22,126 (1,862) 11,597 (1,019) 33,723 (2,881) Total $ 146,076 $ (7,156) $ 123,544 $ (16,374) $ 269,620 $ (23,530) December 31, 2021 U.S. Treasuries $ 110,191 $ (1,496) $ — $ — $ 110,191 $ (1,496) Municipal 5,750 (248) 3,019 (146) 8,769 (394) Corporate 4,448 (52) 486 (14) 4,934 (66) Asset-backed securities — — 2,115 (12) 2,115 (12) Mortgage-backed securities 14,114 (189) 2,124 (8) 16,238 (197) Total $ 134,503 $ (1,985) $ 7,744 $ (180) $ 142,247 $ (2,165)
Investments Classified by Contractual Maturity Date	Contractual maturities of investment securities at September 30, 2022 and December 31, 2021 are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call premiums or prepayment penalties. Contractual Maturities September 30, 2022 December 31, 2021 (in thousands) Amortized Fair Amortized Fair Within one year $ 60,645 $ 60,219 $ — $ — Over one to five years 98,111 91,686 58,602 57,650 Over five to ten years 78,650 67,684 78,850 78,285 Over ten years 10,817 8,086 10,825 10,474 Asset-backed securities (1) 8,323 8,222 10,093 10,140 Mortgage-backed securities (1) 36,604 33,723 27,589 27,906 Total $ 293,150 $ 269,620 $ 185,959 $ 184,455 _______________ (1) Asset-backed and Mortgage-backed securities are due in monthly installments.

Portfolio Loans Receivable (Tab

Portfolio Loans Receivable (Tables)	9 Months Ended
	Sep. 30, 2022
Receivables [Abstract]
Schedule of Loans Receivable	Major classifications of portfolio loans as are as follows: Portfolio Loan Categories (in thousands) September 30, 2022 December 31, 2021 Real estate: Residential $ 466,849 $ 401,607 Commercial 626,030 556,339 Construction 235,045 255,147 Commercial and Industrial 192,207 175,956 Credit card 136,658 141,120 Other consumer 1,055 1,033 Portfolio loans receivable, gross 1,657,844 1,531,202 Deferred origination fees, net (9,843) (7,220) Allowance for loan losses (26,091) (25,181) Portfolio loans receivable, net $ 1,621,910 $ 1,498,801
Schedule of Activity In Accretable Discounts On Loans Acquired	Accretable discounts on loans acquired is summarized as follows: Accretable Discounts on Loans Acquired For the Three Months Ended For the Nine Months Ended (in thousands) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Accretable discount at beginning of period $ 159 $ 212 $ 166 $ 221 Less: Accretion and payoff of loans (11) (23) (18) (32) Accretable discount at end of period $ 148 $ 189 $ 148 $ 189
Allowance for Credit Losses on Loans Receivables	The following tables set forth the changes in the allowance for loan losses and an allocation of the allowance for loan losses by class for the three and nine months ended September 30, 2022 and September 30, 2021. Allowance for Loan Losses Beginning Provision for Charge-Offs Recoveries Ending (in thousands) Three Months Ended September 30, 2022 Real estate: Residential $ 5,863 $ 106 $ — $ — $ 5,969 Commercial 8,857 (489) — — 8,368 Construction 4,473 (468) — — 4,005 Commercial and Industrial 2,457 (262) — — 2,195 Credit card 4,759 2,373 (1,596) 8 5,544 Other consumer 10 — — — 10 Total $ 26,419 $ 1,260 $ (1,596) $ 8 $ 26,091 Nine Months Ended September 30, 2022 Real estate: Residential $ 5,612 $ 357 $ — $ — $ 5,969 Commercial 8,566 (198) — — 8,368 Construction 4,699 (694) — — 4,005 Commercial and Industrial 2,637 (442) — — 2,195 Credit card 3,655 5,226 (3,375) 38 5,544 Other consumer 12 (2) — — 10 Total $ 25,181 $ 4,247 $ (3,375) $ 38 $ 26,091 Allowance for Loan Losses (in thousands) Beginning Provision for Charge-Offs Recoveries Ending Three Months Ended September 30, 2021 Real estate: Residential $ 6,709 $ (289) $ — $ — $ 6,420 Commercial 7,777 315 — — 8,092 Construction 4,542 330 — — 4,872 Commercial and Industrial 2,536 (409) — 1 2,128 Credit card 2,502 1,024 (305) 3 3,224 Other consumer 13 4 — — 17 Total $ 24,079 $ 975 $ (305) $ 4 $ 24,753 Nine Months Ended September 30, 2021 Real estate: Residential $ 7,153 $ (733) $ — $ — $ 6,420 Commercial 6,786 1,467 (161) — 8,092 Construction 4,595 276 — 1 4,872 Commercial and Industrial 2,417 (256) (39) 6 2,128 Credit card 2,462 1,509 (777) 30 3,224 Other consumer 21 (4) — — 17 Total $ 23,434 $ 2,259 $ (977) $ 37 $ 24,753 The following tables present, by class and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans. The allowance for loan losses consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-impaired loans and is based on historical loss experience adjusted for current economic factors. Allowance for Loan Loss Composition (in thousands) Allowance for Loan Losses Outstanding Portfolio September 30, 2022 Individually Collectively Individually Collectively Real estate: Residential $ — $ 5,969 $ 3,165 $ 463,684 Commercial — 8,368 1,560 624,470 Construction — 4,005 2,852 232,193 Commercial and Industrial 159 2,036 843 191,364 Credit card — 5,544 — 136,658 Other consumer — 10 — 1,055 Total $ 159 $ 25,932 $ 8,420 $ 1,649,424 December 31, 2021 Real estate: Residential $ — $ 5,612 $ 2,835 $ 398,772 Commercial — 8,566 25 556,314 Construction — 4,699 7,803 247,344 Commercial and Industrial 218 2,419 676 175,280 Credit card — 3,655 — 141,120 Other consumer — 12 — 1,033 Total $ 218 $ 24,963 $ 11,339 $ 1,519,863
Past Due Loans Receivables	Past due loans, segregated by age and class of loans, as of September 30, 2022 and December 31, 2021 were as follows: Portfolio Loans Past Due Loans Loans Total Past Current Total Accruing Non-accrual (in thousands) September 30, 2022 Real estate: Residential $ 1,238 $ 2,869 $ 4,107 $ 462,742 $ 466,849 $ — $ 3,165 Commercial — 957 957 625,073 626,030 — 1,560 Construction 843 2,852 3,695 231,350 235,045 — 2,852 Commercial and Industrial 480 634 1,114 191,093 192,207 — 843 Credit card 18,453 174 18,627 118,031 136,658 174 — Other consumer — — — 1,055 1,055 — — Total $ 21,014 $ 7,486 $ 28,500 $ 1,629,344 $ 1,657,844 $ 174 $ 8,420 December 31, 2021 Real estate: Residential $ 469 $ 2,494 $ 2,963 $ 398,644 $ 401,607 $ 72 $ 2,835 Commercial 367 25 392 555,947 556,339 — 25 Construction — 7,803 7,803 247,344 255,147 — 7,803 Commercial and Industrial 183 593 776 175,180 175,956 — 676 Credit card 19,022 10 19,032 122,088 141,120 10 — Other consumer — — — 1,033 1,033 — — Total $ 20,041 $ 10,925 $ 30,966 $ 1,500,236 $ 1,531,202 $ 82 $ 11,339
Impaired Loans Receivables	Impaired portfolio loans were as follows: Impaired Portfolio Loans Unpaid Recorded Recorded Total Related (in thousands) September 30, 2022 Real estate: Residential $ 3,329 $ 3,165 $ — $ 3,165 $ — Commercial 1,643 1,560 — 1,560 — Construction 2,939 2,852 — 2,852 — Commercial and Industrial 1,028 575 268 843 159 Total $ 8,939 $ 8,152 $ 268 $ 8,420 $ 159 December 31, 2021 Real estate: Residential $ 3,022 $ 2,835 $ — $ 2,835 $ — Commercial 90 25 — 25 — Construction 7,885 7,803 — 7,803 — Commercial and Industrial 832 340 336 676 218 Total $ 11,829 $ 11,003 $ 336 $ 11,339 $ 218 The following tables summarize interest recognized on impaired loans: Interest Recognized on Impaired Portfolio Loans For the Three Months Ended September 30, 2022 For the Nine Months Ended September 30, 2022 (in thousands) Average Interest Average Interest Real estate: Residential $ 3,329 $ — $ 3,341 $ — Commercial 1,643 — 1,650 — Construction 2,939 — 2,938 — Commercial and Industrial 1,242 — 1,267 — Total $ 9,153 $ — $ 9,196 $ — Interest Recognized on Impaired Portfolio Loans For the Three Months Ended September 30, 2021 For the Nine Months Ended September 30, 2021 (in thousands) Average Interest Average Interest Real estate: Residential $ 5,222 $ 45 $ 5,334 $ 67 Commercial 90 5 90 22 Construction 7,885 127 7,779 127 Commercial and Industrial 1,056 16 1,058 49 Total $ 14,253 $ 193 $ 14,261 $ 265
Loans Receivables Credit Quality Indicators	The following table presents the balances of classified loans based on the risk grade. Classified loans include Special Mention, Substandard, and Doubtful loans: Portfolio Loan Classifications (in thousands) Pass (1) Special Mention Substandard Doubtful Total September 30, 2022 Real estate: Residential $ 451,471 $ 9,751 $ 5,627 $ — $ 466,849 Commercial 618,461 6,009 1,560 — 626,030 Construction 232,193 — 2,852 — 235,045 Commercial and Industrial 186,448 4,216 1,543 — 192,207 Credit card 136,658 — — — 136,658 Other consumer 1,055 — — — 1,055 Portfolio loans receivable, gross $ 1,626,286 $ 19,976 $ 11,582 $ — $ 1,657,844 December 31, 2021 Real estate: Residential $ 394,488 $ 2,540 $ 4,579 $ — $ 401,607 Commercial 548,244 8,070 25 — 556,339 Construction 243,848 3,496 7,803 — 255,147 Commercial and Industrial 164,066 10,417 1,473 — 175,956 Credit card 141,120 — — — 141,120 Other consumer 1,033 — — — 1,033 Portfolio loans receivable, gross $ 1,492,799 $ 24,523 $ 13,880 $ — $ 1,531,202 ________________________ (1) Pass includes loans graded exceptional, very good, good, satisfactory and pass/watch, in addition to credit cards and consumer credits that are not individually graded.
Troubled Debt Restructurings on Loans Receivables	Modifications such as payment deferrals through September 30, 2022 have been short term in nature and are included in the population of loans deferred and have not impacted TDRs. The status of TDRs is as follows: Troubled Debt Restructurings (in thousands) Number of Recorded Investment September 30, 2022 Performing Nonperforming Total Real estate: Residential 4 $ — $ 437 $ 437 Commercial and Industrial 1 — 70 70 Total 5 $ — $ 507 $ 507 December 31, 2021 Real estate: Residential 4 $ — $ 450 $ 450 Commercial and Industrial 1 — 83 83 Total 5 $ — $ 533 $ 533
Schedule of Outstanding Loan Commitments	Outstanding loan commitments were as follows: Loan Commitments (in thousands) September 30, 2022 December 31, 2021 Unused lines of credit Real Estate: Residential $ 24,997 $ 15,747 Residential - Home Equity 39,957 37,640 Commercial 33,382 17,225 Construction 76,034 118,518 Commercial and Industrial 48,184 45,135 Credit card (1) 119,680 123,874 Other consumer 274 2,247 Total $ 342,508 $ 360,386 Commitments to originate residential loans held for sale $ — $ 1,385 Letters of credit $ 5,085 $ 5,105 ________________________ (1) Outstanding loan commitments in the credit card portfolio include $114.5 million and $121.7 million in secured balances as of September 30, 2022 and December 31, 2021, respectively.
Schedule of Credit Losses for Financing Receivables	Activity for this account is as follows for the periods presented: Off Balance Sheet Reserve For the Three Months Ended For the Nine Months Ended (in thousands) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Balance at beginning of period $ 1,631 $ 1,745 $ 1,736 $ 1,775 Provision for (reversal of) off balance sheet credit commitments 51 (9) (54) (39) Balance at end of period $ 1,682 $ 1,736 $ 1,682 $ 1,736 Mortgage Loan Put-back Reserve For the Three Months Ended For the Nine Months Ended (in thousands) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Balance at beginning of period $ 1,166 $ 1,369 $ 1,164 $ 1,160 Provision for mortgage loan put backs 4 70 6 279 Balance at end of period $ 1,170 $ 1,439 $ 1,170 $ 1,439

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Instruments	The following table reports the commitment and fair value amounts on the outstanding derivatives: Derivatives (in thousands) September 30, 2022 December 31, 2021 Notional amount of open forward sales agreements $ 4,250 $ 22,500 Fair value of open forward delivery sales agreements 44 (16) Notional amount of interest rate lock commitments 3,689 18,053 Fair value of interest rate lock commitments (31) 34

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Assets and Liabilities, Lessee	The Company’s lease information is summarized as follows: Leases (in thousands) September 30, 2022 December 31, 2021 Lease Right of Use Asset: Lease asset $ 5,240 $ 5,364 Less: Accumulated amortization (2,841) (2,898) Net lease asset $ 2,399 $ 2,466 Lease Liability: Lease liability $ 5,396 5,535 Less: Accumulated amortization (2,732) (2,800) Lease liability $ 2,664 $ 2,735
Lessee, Operating Lease, Liability, Maturity	Future minimum payments for operating leases with initial or remaining terms of one year or more are as follows: Lease Payment Obligations (in thousands) September 30, 2022 Amounts due in: 2022 277 2023 1,091 2024 721 2025 259 2026 and thereafter 392 Total future lease payments 2,740 Discount of cash flows (76) Present value of net future lease payments $ 2,664

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The Company has categorized its financial instruments measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021 as follows: Fair Value of Financial Instruments (in thousands) September 30, 2022 Total Level 1 Inputs Level 2 Inputs Level 3 Inputs Investment securities available for sale U.S. Treasuries $ 214,940 $ 214,940 $ — $ — Municipal 8,087 — 8,087 — Corporate 4,648 — 4,648 — Asset-backed securities 8,222 — 8,222 — Mortgage-backed securities 33,723 — 33,723 — Total $ 269,620 $ 214,940 $ 54,680 $ — Marketable equity securities $ 232 $ 232 $ — $ — Loans held for sale $ 6,875 $ — $ 6,875 $ — Derivative assets $ 44 $ — $ 44 $ — Derivative liabilities $ 31 $ — $ 31 $ — December 31, 2021 Investment securities available for sale U.S. Treasuries $ 131,001 $ 131,001 $ — $ — Municipal 10,474 — 10,474 — Corporate 4,934 — 4,934 — Asset-backed securities 10,140 — 10,140 — Mortgage-backed securities 27,906 — 27,906 — Total $ 184,455 $ 131,001 $ 53,454 $ — Marketable equity securities $ 245 $ 245 $ — $ — Loans held for sale $ 15,989 $ — $ 15,989 $ — Derivative assets $ 34 $ — $ 34 $ — Derivative liabilities $ 16 $ — $ 16 $ —
Schedule of Fair Value of Loans Held For Sale	The following table reflects the difference between the fair value carrying amount of loans held for sale, measured at fair value under FASB ASC 825-10, and the aggregate unpaid principal amount the Company is contractually entitled to receive at maturity: Fair Value of Loans Held for Sale (in thousands) September 30, 2022 December 31, 2021 Aggregate fair value $ 6,875 $ 15,989 Contractual principal 6,237 14,504 Difference $ 638 $ 1,485
Fair Value Measurements, Nonrecurring	The Company has categorized its impaired loans and foreclosed real estate as follows: Fair Value of Impaired Loans and Foreclosed Real Estate (in thousands) September 30, 2022 December 31, 2021 Impaired loans Level 3 inputs $ 8,261 $ 11,121 Total $ 8,261 $ 11,121 Foreclosed real estate Level 3 inputs $ — $ 86 Total $ — $ 86
Fair Value Measurement Inputs and Valuation Techniques	The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at September 30, 2022 and December 31, 2021: Unobservable Inputs Valuation Technique Unobservable Inputs Range of Inputs Impaired Loans Appraised Value/Discounted Cash Flows Discounts to appraisals or cash flows for estimated holding and/or selling costs 11 to 25% Foreclosed Real Estate Appraised Value/Comparable Sales Discounts to appraisals for estimated holding and/or selling costs 11 to 25%
Fair Value Measurements, Recurring and Nonrecurring	Fair Value of Selected Financial Instruments September 30, 2022 December 31, 2021 (in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Level 1 Cash and due from banks $ 14,774 $ 14,774 $ 42,914 $ 42,914 Interest bearing deposits at other financial institutions 20,867 20,867 136,824 136,824 Marketable equity securities 232 232 245 245 Federal funds sold 1,421 1,421 3,657 3,657 Level 3 Loans receivable, net (1) $ 1,624,572 $ 1,572,842 $ 1,607,086 $ 1,598,228 Restricted investments 3,627 3,627 3,498 3,498 Financial liabilities Level 1 Noninterest bearing deposits $ 806,033 $ 806,033 $ 787,650 $ 787,650 Level 3 Interest bearing deposits $ 931,558 $ 931,882 $ 1,009,487 $ 1,011,121 FHLB advances and other borrowed funds 34,062 31,116 34,062 34,263 ________________________ (1) Includes SBA-PPP loans and portfolio loans.

Segments (Tables)

Segments (Tables)	9 Months Ended
	Sep. 30, 2022
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	The following schedule presents financial information for each reportable segment at September 30, 2022 and September 30, 2021. Segments For the Three Months Ended September 30, 2022 (in thousands) Commercial Bank CBHL OpenSky ® Corporate (2) Eliminations Consolidated Interest income $ 20,382 $ 102 $ 17,103 $ 812 $ (59) $ 38,340 Interest expense 1,449 40 — 233 (59) 1,663 Net interest income 18,933 62 17,103 579 — 36,677 Provision (release of provision) for loan losses (980) — 2,240 — — 1,260 Net interest income after provision 19,913 62 14,863 579 — 35,417 Noninterest income 468 1,115 5,524 1 — 7,108 Noninterest expense (1) 13,798 2,017 12,101 178 — 28,094 Net income (loss) before taxes $ 6,583 $ (840) $ 8,286 $ 402 $ — $ 14,431 Total assets $ 1,823,049 $ 7,664 $ 128,842 $ 234,731 $ (184,928) $ 2,009,358 For the Three Months Ended September 30, 2021 Interest income $ 17,109 $ 248 $ 15,635 $ 574 $ (38) $ 33,528 Interest expense 1,160 177 — 170 (38) 1,469 Net interest income 15,949 71 15,635 404 — 32,059 Provision for loan losses — — 975 — — 975 Net interest income after provision 15,949 71 14,660 404 — 31,084 Noninterest income 559 4,484 7,553 1 — 12,597 Noninterest expense (1) 12,073 2,775 13,677 102 — 28,627 Net income before taxes $ 4,435 $ 1,780 $ 8,536 $ 303 $ — $ 15,054 Total assets $ 1,956,340 $ 36,791 $ 135,612 $ 209,070 $ (168,257) $ 2,169,556 ________________________ (1) Noninterest expense includes $6.6 million and $9.4 million in data processing expense in OpenSky’s ® segment for the three months ended September 30, 2022 and 2021, respectively. (2) The Corporate segment invests idle cash in revenue producing assets including interest-bearing cash accounts, loan participations and other appropriate investments for the Company. For the Nine Months Ended September 30, 2022 (in thousands) Commercial Bank CBHL OpenSky ® Corporate (2) Eliminations Consolidated Interest income $ 57,794 $ 347 $ 48,823 $ 2,457 $ (123) $ 109,298 Interest expense 3,255 185 — 573 (123) 3,890 Net interest income 54,539 162 48,823 1,884 — 105,408 Provision (release of provision) for loan losses (980) — 5,227 — — 4,247 Net interest income after provision 55,519 162 43,596 1,884 — 101,161 Noninterest income 1,571 4,580 17,658 2 — 23,811 Noninterest expense (1) 38,741 6,364 36,923 351 — 82,379 Net income (loss) before taxes $ 18,349 $ (1,622) $ 24,331 $ 1,535 $ — $ 42,593 Total assets $ 1,823,049 $ 7,664 $ 128,842 $ 234,731 $ (184,928) $ 2,009,358 For the Nine Months Ended September 30, 2021 Interest income $ 51,969 $ 1,037 $ 34,944 $ 1,604 $ (99) $ 89,455 Interest expense 4,285 745 — 502 (99) 5,433 Net interest income 47,684 292 34,944 1,102 — 84,022 Provision for loan losses 433 — 1,756 70 — 2,259 Net interest income after provision 47,251 292 33,188 1,032 — 81,763 Noninterest income 1,212 17,529 21,208 43 — 39,992 Noninterest expense (1) 31,962 9,941 39,379 290 — 81,572 Net income before taxes $ 16,501 $ 7,880 $ 15,017 $ 785 $ — $ 40,183 Total assets $ 1,956,340 $ 36,791 $ 135,612 $ 209,070 $ (168,257) $ 2,169,556 ________________________ (1) Noninterest expense includes $20.9 million and $27.3 million in data processing expense in OpenSky’s ® segment for the nine months ended September 30, 2022 and 2021, respectively. (2) The Corporate segment invests idle cash in revenue producing assets including interest-bearing cash accounts, loan participations and other appropriate investments for the Company.

Nature of Business and Basis _4

Nature of Business and Basis of Presentation - Basis of presentation (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($) segment	Dec. 31, 2021 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans outstanding	$ 1,621,910	$ 1,498,801
Number of reportable segments | segment	4
Church Street Capital
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans outstanding	$ 7,100

Nature of Business and Basis _5

Nature of Business and Basis of Presentation - SBA Paycheck Protection Program (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 1,657,844		$ 1,657,844		$ 1,531,202
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	192,207		192,207		175,956
Commercial and Industrial | Paycheck Protection Program
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	2,700		2,700		111,500
Unearned net fees	53		53		$ 3,200
Interest income	$ 263	$ 1,500	$ 3,400	$ 6,300

Nature of Business and Basis _6

Nature of Business and Basis of Presentation - Loans and the Allowance for Loan Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans outstanding	$ 1,621,910	$ 1,498,801
COVID-19
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans outstanding	$ 7,300

Nature of Business and Basis _7

Nature of Business and Basis of Presentation - Premises and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Bank owned life insurance	$ 36,267	$ 35,300	$ 36,267	$ 35,300	$ 35,506
Other non interest income	$ 255	$ 268	$ 761	$ 268
Premises and equipment | Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life			2 years
Premises and equipment | Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life			7 years

Nature of Business and Basis _8

Nature of Business and Basis of Presentation - Earnings per Share (Details) - shares	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	140,591	147

Nature of Business and Basis _9

Nature of Business and Basis of Presentation - Comprehensive Loss (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated comprehensive loss	$ (17,583)	$ (1,076)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated comprehensive loss	(17,583)	(1,076)
Accumulated Net Investment Gain (Loss) Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized losses on securities available for sale	(23,530)	(1,504)
Deferred tax benefit	$ 5,947	$ 428

Investment Securities - Amortiz

Investment Securities - Amortized cost to Estimated Fair Value (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) segment	Sep. 30, 2021 segment	Sep. 30, 2022 USD ($) segment	Sep. 30, 2021 USD ($) segment	Dec. 31, 2021 USD ($)
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 293,150		$ 293,150		$ 185,959
Unrealized Gains	0		0		661
Unrealized Losses	(23,530)		(23,530)		(2,165)
Fair Value	$ 269,620		$ 269,620		184,455
Number of securities sold | segment	0	0	0	28
Proceeds from sale of securities available for sale			$ 0	$ 66,534
Realized gains on investment sales				694
Realized loss on investment sales				$ 541
U.S. Treasuries
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 232,406		232,406		132,452
Unrealized Gains	0		0		45
Unrealized Losses	(17,466)		(17,466)		(1,496)
Fair Value	214,940		214,940		131,001
Municipal
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	10,817		10,817		10,825
Unrealized Gains	0		0		43
Unrealized Losses	(2,730)		(2,730)		(394)
Fair Value	8,087		8,087		10,474
Corporate
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	5,000		5,000		5,000
Unrealized Gains	0		0		0
Unrealized Losses	(352)		(352)		(66)
Fair Value	4,648		4,648		4,934
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	8,323		8,323		10,093
Unrealized Gains	0		0		59
Unrealized Losses	(101)		(101)		(12)
Fair Value	8,222		8,222		10,140
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	36,604		36,604		27,589
Unrealized Gains	0		0		514
Unrealized Losses	(2,881)		(2,881)		(197)
Fair Value	$ 33,723		$ 33,723		$ 27,906

Investment Securities - Unreali

Investment Securities - Unrealized Losses (Details) $ in Thousands	Sep. 30, 2022 USD ($) segment	Dec. 31, 2021 USD ($) security
Fair Value
Less than 12 months	$ 146,076	$ 134,503
12 months or longer	123,544	7,744
Total	269,620	142,247
Unrealized Losses
Less than 12 months	(7,156)	(1,985)
12 months or longer	(16,374)	(180)
Total	(23,530)	(2,165)
U.S. Treasuries
Fair Value
Less than 12 months	116,078	110,191
12 months or longer	98,862	0
Total	214,940	110,191
Unrealized Losses
Less than 12 months	(4,968)	(1,496)
12 months or longer	(12,498)	0
Total	$ (17,466)	(1,496)
Number of securities in a loss position for greater than twelve months | segment	14
Municipal
Fair Value
Less than 12 months	$ 1,412	5,750
12 months or longer	6,675	3,019
Total	8,087	8,769
Unrealized Losses
Less than 12 months	(248)	(248)
12 months or longer	(2,482)	(146)
Total	$ (2,730)	$ (394)
Number of securities in a loss position for greater than twelve months	7	2
Corporate
Fair Value
Less than 12 months	$ 0	$ 4,448
12 months or longer	4,648	486
Total	4,648	4,934
Unrealized Losses
Less than 12 months	0	(52)
12 months or longer	(352)	(14)
Total	$ (352)	$ (66)
Number of securities in a loss position for greater than twelve months	5	1
Asset-backed securities
Fair Value
Less than 12 months	$ 6,460	$ 0
12 months or longer	1,762	2,115
Total	8,222	2,115
Unrealized Losses
Less than 12 months	(78)	0
12 months or longer	(23)	(12)
Total	$ (101)	$ (12)
Number of securities in a loss position for greater than twelve months	1	1
Mortgage-backed securities
Fair Value
Less than 12 months	$ 22,126	$ 14,114
12 months or longer	11,597	2,124
Total	33,723	16,238
Unrealized Losses
Less than 12 months	(1,862)	(189)
12 months or longer	(1,019)	(8)
Total	$ (2,881)	$ (197)
Number of securities in a loss position for greater than twelve months	3	1

Investment Securities - By Matu

Investment Securities - By Maturity Dates (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Amortized Cost
Within one year	$ 60,645	$ 0
Over one to five years	98,111	58,602
Over five to ten years	78,650	78,850
Over ten years	10,817	10,825
Asset/Mortgage-backed securities	293,150	185,959
Fair Value
Within one year	60,219	0
Over one to five years	91,686	57,650
Over five to ten years	67,684	78,285
Over ten years	8,086	10,474
Fair Value	269,620	184,455
Asset-backed securities
Amortized Cost
Asset/Mortgage-backed securities	8,323	10,093
Fair Value
Fair Value	8,222	10,140
Mortgage-backed securities
Amortized Cost
Asset/Mortgage-backed securities	36,604	27,589
Fair Value
Fair Value	$ 33,723	$ 27,906

SBA-PPP Loans Receivable (Detai

SBA-PPP Loans Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 1,657,844	$ 1,531,202
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	192,207	175,956
Commercial and Industrial | Paycheck Protection Program
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	2,700	111,500
Unearned net fees	$ 53	$ 3,200

Portfolio Loans Receivable - Cl

Portfolio Loans Receivable - Classification of Loans (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Sep. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 1,657,844		$ 1,531,202
Deferred origination fees, net	(9,843)		(7,220)
Allowance for loan losses	(26,091)	$ (26,419)	(25,181)	$ (24,753)	$ (24,079)	$ (23,434)
Total portfolio loans held for investment, net	1,621,910		1,498,801
Residential | Real estate:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	466,849		401,607
Allowance for loan losses	$ (5,969)	(5,863)	(5,612)	(6,420)	(6,709)	(7,153)
Residential | Real estate: | Owner Occupied Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial commitment term	30 years
Residential | Real estate: | Owner Occupied Real Estate | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fixed interest rate term	5 years
Residential | Real estate: | Owner Occupied Real Estate | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fixed interest rate term	7 years
Residential | Real estate: | Investor Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial commitment term	25 years
Balloon payment period	5 years
Debt service coverage ratio	1.15
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 192,207		175,956
Allowance for loan losses	(2,195)	(2,457)	(2,637)	(2,128)	(2,536)	(2,417)
Commercial | Real estate:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	626,030		556,339
Allowance for loan losses	$ (8,368)	(8,857)	(8,566)	(8,092)	(7,777)	(6,786)
Initial commitment term	10 years
Amortization period	25 years
Commercial | Real estate: | Owner Occupied Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 354,100
Percent of real estate portfolio	57%
Construction | Real estate:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 235,045		255,147
Allowance for loan losses	$ (4,005)	(4,473)	(4,699)	(4,872)	(4,542)	(4,595)
Construction | Real estate: | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial commitment term	12 months
Construction | Real estate: | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial commitment term	18 months
Construction | Real estate: | Owner Occupied Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Principal to collateral value ratio, percent	80%
Construction | Real estate: | Investor Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Principal to collateral value ratio, percent	75%
Consumer | Credit card
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 136,658		141,120
Allowance for loan losses	(5,544)	(4,759)	(3,655)	(3,224)	(2,502)	(2,462)
Consumer | Credit card | Savings Deposit Held By Company
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	116,500		126,800
Consumer | Credit card | Secured And Partially Secured Credit Cards
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	132,000		140,200
Consumer | Credit card | Unsecured Credit Cards
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	27,300		17,700
Consumer | Other consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	1,055		1,033
Allowance for loan losses	$ (10)	$ (10)	$ (12)	$ (17)	$ (13)	$ (21)

Portfolio Loans Receivable - Ac

Portfolio Loans Receivable - Accretable Discount (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Receivables [Abstract]
Remaining nonaccretable discount	$ 285		$ 285		$ 285
Loans receivable, net	793		793		$ 818
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Accretable discount at beginning of period	159	$ 212	166	$ 221
Less: Accretion and payoff of loans	(11)	(23)	(18)	(32)
Accretable discount at end of period	$ 148	$ 189	$ 148	$ 189

Portfolio Loans Receivable - Al

Portfolio Loans Receivable - Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	$ 26,419	$ 24,079	$ 25,181	$ 23,434
Provision for Loan Losses	1,260	975	4,247	2,259
Charge-Offs	(1,596)	(305)	(3,375)	(977)
Recoveries	8	4	38	37
Ending Balance	26,091	24,753	26,091	24,753
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Individually	159		159		$ 218
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Collectively	25,932		25,932		24,963
Outstanding Loan Balances Evaluated for Impairment: Individually	8,420		8,420		11,339
Outstanding Loan Balances Evaluated for Impairment: Collectively	1,649,424		1,649,424		1,519,863
Residential | Real estate:
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	5,863	6,709	5,612	7,153
Provision for Loan Losses	106	(289)	357	(733)
Charge-Offs	0	0	0	0
Recoveries	0	0	0	0
Ending Balance	5,969	6,420	5,969	6,420
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Individually	0		0		0
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Collectively	5,969		5,969		5,612
Outstanding Loan Balances Evaluated for Impairment: Individually	3,165		3,165		2,835
Outstanding Loan Balances Evaluated for Impairment: Collectively	463,684		463,684		398,772
Commercial
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	2,457	2,536	2,637	2,417
Provision for Loan Losses	(262)	(409)	(442)	(256)
Charge-Offs	0	0	0	(39)
Recoveries	0	1	0	6
Ending Balance	2,195	2,128	2,195	2,128
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Individually	159		159		218
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Collectively	2,036		2,036		2,419
Outstanding Loan Balances Evaluated for Impairment: Individually	843		843		676
Outstanding Loan Balances Evaluated for Impairment: Collectively	191,364		191,364		175,280
Commercial | Real estate:
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	8,857	7,777	8,566	6,786
Provision for Loan Losses	(489)	315	(198)	1,467
Charge-Offs	0	0	0	(161)
Recoveries	0	0	0	0
Ending Balance	8,368	8,092	8,368	8,092
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Individually	0		0		0
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Collectively	8,368		8,368		8,566
Outstanding Loan Balances Evaluated for Impairment: Individually	1,560		1,560		25
Outstanding Loan Balances Evaluated for Impairment: Collectively	624,470		624,470		556,314
Construction | Real estate:
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	4,473	4,542	4,699	4,595
Provision for Loan Losses	(468)	330	(694)	276
Charge-Offs	0	0	0	0
Recoveries	0	0	0	1
Ending Balance	4,005	4,872	4,005	4,872
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Individually	0		0		0
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Collectively	4,005		4,005		4,699
Outstanding Loan Balances Evaluated for Impairment: Individually	2,852		2,852		7,803
Outstanding Loan Balances Evaluated for Impairment: Collectively	232,193		232,193		247,344
Consumer | Credit card
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	4,759	2,502	3,655	2,462
Provision for Loan Losses	2,373	1,024	5,226	1,509
Charge-Offs	(1,596)	(305)	(3,375)	(777)
Recoveries	8	3	38	30
Ending Balance	5,544	3,224	5,544	3,224
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Individually	0		0		0
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Collectively	5,544		5,544		3,655
Outstanding Loan Balances Evaluated for Impairment: Individually	0		0		0
Outstanding Loan Balances Evaluated for Impairment: Collectively	136,658		136,658		141,120
Consumer | Other consumer
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	10	13	12	21
Provision for Loan Losses	0	4	(2)	(4)
Charge-Offs	0	0	0	0
Recoveries	0	0	0	0
Ending Balance	10	$ 17	10	$ 17
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Individually	0		0		0
Allowance for Loan Losses Ending Balance Evaluated for Impairment: Collectively	10		10		12
Outstanding Loan Balances Evaluated for Impairment: Individually	0		0		0
Outstanding Loan Balances Evaluated for Impairment: Collectively	$ 1,055		$ 1,055		$ 1,033

Portfolio Loans Receivable - Pa

Portfolio Loans Receivable - Past Due Financing Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	$ 1,657,844	$ 1,531,202
Accruing Loans 90 or More Days Past Due	174	82
Non-accrual Loans	8,420	11,339
Residential Real Estate
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	1,400	6
Loans 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	21,014	20,041
Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	7,486	10,925
Total Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	28,500	30,966
Current Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	1,629,344	1,500,236
Residential | Real estate:
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	466,849	401,607
Accruing Loans 90 or More Days Past Due	0	72
Non-accrual Loans	3,165	2,835
Residential | Real estate: | Loans 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	1,238	469
Residential | Real estate: | Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	2,869	2,494
Residential | Real estate: | Total Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	4,107	2,963
Residential | Real estate: | Current Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	462,742	398,644
Commercial
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	192,207	175,956
Accruing Loans 90 or More Days Past Due	0	0
Non-accrual Loans	843	676
Commercial | Loans 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	480	183
Commercial | Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	634	593
Commercial | Total Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	1,114	776
Commercial | Current Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	191,093	175,180
Commercial | Real estate:
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	626,030	556,339
Accruing Loans 90 or More Days Past Due	0	0
Non-accrual Loans	1,560	25
Commercial | Real estate: | Loans 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	0	367
Commercial | Real estate: | Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	957	25
Commercial | Real estate: | Total Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	957	392
Commercial | Real estate: | Current Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	625,073	555,947
Construction | Real estate:
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	235,045	255,147
Accruing Loans 90 or More Days Past Due	0	0
Non-accrual Loans	2,852	7,803
Construction | Real estate: | Loans 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	843	0
Construction | Real estate: | Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	2,852	7,803
Construction | Real estate: | Total Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	3,695	7,803
Construction | Real estate: | Current Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	231,350	247,344
Consumer | Credit card
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	136,658	141,120
Accruing Loans 90 or More Days Past Due	174	10
Non-accrual Loans	0	0
Consumer | Credit card | Loans 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	18,453	19,022
Consumer | Credit card | Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	174	10
Consumer | Credit card | Total Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	18,627	19,032
Consumer | Credit card | Current Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	118,031	122,088
Consumer | Other consumer
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	1,055	1,033
Accruing Loans 90 or More Days Past Due	0	0
Non-accrual Loans	0	0
Consumer | Other consumer | Loans 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	0	0
Consumer | Other consumer | Loans 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	0	0
Consumer | Other consumer | Total Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	0	0
Consumer | Other consumer | Current Loans
Financing Receivable, Past Due [Line Items]
Loans receivable, gross	$ 1,055	$ 1,033

Portfolio Loans Receivable - Im

Portfolio Loans Receivable - Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	$ 8,939		$ 8,939		$ 11,829
Recorded Investment With No Allowance	8,152		8,152		11,003
Recorded Investment With Allowance	268		268		336
Total Recorded Investment	8,420		8,420		11,339
Related Allowance	159		159		218
Average Recorded Investment	9,153	$ 14,253	9,196	$ 14,261
Interest Recognized	0	193	0	265
Residential | Real estate:
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	3,329		3,329		3,022
Recorded Investment With No Allowance	3,165		3,165		2,835
Recorded Investment With Allowance	0		0		0
Total Recorded Investment	3,165		3,165		2,835
Related Allowance	0		0		0
Average Recorded Investment	3,329	5,222	3,341	5,334
Interest Recognized	0	45	0	67
Commercial
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	1,028		1,028		832
Recorded Investment With No Allowance	575		575		340
Recorded Investment With Allowance	268		268		336
Total Recorded Investment	843		843		676
Related Allowance	159		159		218
Average Recorded Investment	1,242	1,056	1,267	1,058
Interest Recognized	0	16	0	49
Commercial | Real estate:
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	1,643		1,643		90
Recorded Investment With No Allowance	1,560		1,560		25
Recorded Investment With Allowance	0		0		0
Total Recorded Investment	1,560		1,560		25
Related Allowance	0		0		0
Average Recorded Investment	1,643	90	1,650	90
Interest Recognized	0	5	0	22
Construction | Real estate:
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	2,939		2,939		7,885
Recorded Investment With No Allowance	2,852		2,852		7,803
Recorded Investment With Allowance	0		0		0
Total Recorded Investment	2,852		2,852		7,803
Related Allowance	0		0		$ 0
Average Recorded Investment	2,939	7,885	2,938	7,779
Interest Recognized	$ 0	$ 127	$ 0	$ 127

Portfolio Loans Receivable - Cr

Portfolio Loans Receivable - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	$ 1,657,844	$ 1,531,202
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	1,626,286	1,492,799
Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	19,976	24,523
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	11,582	13,880
Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	0	0
Residential | Real estate:
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	466,849	401,607
Residential | Real estate: | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	451,471	394,488
Residential | Real estate: | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	9,751	2,540
Residential | Real estate: | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	5,627	4,579
Residential | Real estate: | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	0	0
Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	192,207	175,956
Commercial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	186,448	164,066
Commercial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	4,216	10,417
Commercial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	1,543	1,473
Commercial | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	0	0
Commercial | Real estate:
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	626,030	556,339
Commercial | Real estate: | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	618,461	548,244
Commercial | Real estate: | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	6,009	8,070
Commercial | Real estate: | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	1,560	25
Commercial | Real estate: | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	0	0
Construction | Real estate:
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	235,045	255,147
Construction | Real estate: | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	232,193	243,848
Construction | Real estate: | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	0	3,496
Construction | Real estate: | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	2,852	7,803
Construction | Real estate: | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	0	0
Consumer | Credit card
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	136,658	141,120
Consumer | Credit card | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	136,658	141,120
Consumer | Credit card | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	0	0
Consumer | Credit card | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	0	0
Consumer | Credit card | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	0	0
Consumer | Other consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	1,055	1,033
Consumer | Other consumer | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	1,055	1,033
Consumer | Other consumer | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	0	0
Consumer | Other consumer | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	0	0
Consumer | Other consumer | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable, gross	$ 0	$ 0

Portfolio Loans Receivable - Tr

Portfolio Loans Receivable - Trouble Debt Restructuring (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022 USD ($) segment	Sep. 30, 2021 USD ($) segment	Sep. 30, 2022 USD ($) segment contract	Sep. 30, 2021 USD ($) segment	Dec. 31, 2021 USD ($) segment contract
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | contract			5		5
Recorded Investment	$ 507		$ 507		$ 533
Residential | Real estate:
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | contract			4		4
Recorded Investment	$ 437		$ 437		$ 450
Residential | Real estate: | New T D R Member
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | segment	0	0	0	1
Recorded Investment		$ 319		$ 319
Commercial and Industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | segment			1		1
Recorded Investment	$ 70		$ 70		$ 83
Commercial and Industrial | Paid Off T D R Member
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | segment				1
Recorded Investment		$ 200		$ 200
Performing
Financing Receivable, Troubled Debt Restructuring [Line Items]
Recorded Investment	0		0		0
Performing | Residential | Real estate:
Financing Receivable, Troubled Debt Restructuring [Line Items]
Recorded Investment	0		0		0
Performing | Commercial and Industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Recorded Investment	0		0		0
Nonperforming
Financing Receivable, Troubled Debt Restructuring [Line Items]
Recorded Investment	507		507		533
Nonperforming | Residential | Real estate:
Financing Receivable, Troubled Debt Restructuring [Line Items]
Recorded Investment	437		437		450
Nonperforming | Commercial and Industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Recorded Investment	$ 70		$ 70		$ 83

Portfolio Loans Receivable - Ou

Portfolio Loans Receivable - Outstanding Loan Commitments (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 1,657,844	$ 1,531,202
Residential | Real estate:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	466,849	401,607
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	192,207	175,956
Commercial and Industrial | Real estate:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	626,030	556,339
Construction | Real estate:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	235,045	255,147
Consumer | Credit card
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	136,658	141,120
Consumer | Credit card | Savings Deposits
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	114,500	121,700
Consumer | Other consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	1,055	1,033
Commitments to Extend Credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	342,508	360,386
Letters of credit	5,085	5,105
Commitments to Extend Credit | Residential | Real estate:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	24,997	15,747
Commitments to Extend Credit | Residential | Residential - Home Equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	39,957	37,640
Commitments to Extend Credit | Residential | Commitments to originate residential loans held for sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	0	1,385
Commitments to Extend Credit | Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	48,184	45,135
Commitments to Extend Credit | Commercial and Industrial | Real estate:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	33,382	17,225
Commitments to Extend Credit | Construction | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	76,034	118,518
Commitments to Extend Credit | Consumer | Credit card
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	119,680	123,874
Commitments to Extend Credit | Consumer | Other consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused lines of credit	$ 274	$ 2,247

Portfolio Loans Receivable - _2

Portfolio Loans Receivable - Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	$ 26,419	$ 24,079	$ 25,181	$ 23,434
Provision for (reversal of) off balance sheet credit commitments	1,260	975	4,247	2,259
Ending Balance	26,091	24,753	26,091	24,753
Off Balance Sheet Reserve
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	1,631	1,745	1,736	1,775
Provision for (reversal of) off balance sheet credit commitments	51	(9)	(54)	(39)
Ending Balance	1,682	1,736	1,682	1,736
Mortgage Loan Put-back Reserve
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	1,166	1,369	1,164	1,160
Provision for (reversal of) off balance sheet credit commitments	4	70	6	279
Ending Balance	$ 1,170	$ 1,439	$ 1,170	$ 1,439

Derivative Financial Instrume_3

Derivative Financial Instruments (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Open Forward Delivery Sales Agreements
Derivatives, Fair Value [Line Items]
Notional amount	$ 4,250	$ 22,500
Fair value of open forward delivery sales agreements	44	(16)
Interest Rate Lock Commitments
Derivatives, Fair Value [Line Items]
Notional amount	3,689	18,053
Fair value of interest rate lock commitments	$ (31)	$ 34

Leases - Additional Information

Leases - Additional Information (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($) branch location	Dec. 31, 2021 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of full service branches | branch	4
Number of other locations | location	4
Weighted average discount rate	2.01%	2.23%
ROU assets	$ 2,399	$ 2,466
Lease liability	$ 2,664	$ 2,735
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Remaining term of contract	1 year
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Remaining term of contract	6 years

Leases - Assets and Liabilities

Leases - Assets and Liabilities and Lease Payment Obligations (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Lease asset	$ 5,240	$ 5,364
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Premises and equipment, net	Premises and equipment, net
Less: Accumulated amortization	$ (2,841)	$ (2,898)
Net lease asset	2,399	2,466
Lease liability	$ 5,396	$ 5,535
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities
Less: Accumulated amortization	$ (2,732)	$ (2,800)
Lease liability	2,664	2,735
Amounts due in:
2022	277
2023	1,091
2024	721
2025	259
2026 and thereafter	392
Total future lease payments	2,740
Discount of cash flows	(76)
Present value of net future lease payments	$ 2,664	$ 2,735

Fair Value - Financial Instrume

Fair Value - Financial Instruments Measured at FV on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	$ 269,620	$ 184,455
Loans held for sale	6,875	15,989
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	269,620	184,455
Marketable equity securities	232	245
Loans held for sale	6,875	15,989
Derivative assets	44	34
Derivative liabilities	31	16
Fair Value, Measurements, Recurring | Level 1 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	214,940	131,001
Marketable equity securities	232	245
Loans held for sale	0	0
Derivative assets	0	0
Derivative liabilities	0	0
Fair Value, Measurements, Recurring | Level 2 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	54,680	53,454
Marketable equity securities	0	0
Loans held for sale	6,875	15,989
Derivative assets	44	34
Derivative liabilities		16
Fair Value, Measurements, Recurring | Level 3 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Marketable equity securities	0	0
Loans held for sale	0	0
Derivative assets	0	0
Derivative liabilities	0	0
U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	214,940	131,001
U.S. Treasuries | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	214,940	131,001
U.S. Treasuries | Fair Value, Measurements, Recurring | Level 1 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	214,940	131,001
U.S. Treasuries | Fair Value, Measurements, Recurring | Level 2 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
U.S. Treasuries | Fair Value, Measurements, Recurring | Level 3 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Municipal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	8,087	10,474
Municipal | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	8,087	10,474
Municipal | Fair Value, Measurements, Recurring | Level 1 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Municipal | Fair Value, Measurements, Recurring | Level 2 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	8,087	10,474
Municipal | Fair Value, Measurements, Recurring | Level 3 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	4,648	4,934
Corporate | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	4,648	4,934
Corporate | Fair Value, Measurements, Recurring | Level 1 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Corporate | Fair Value, Measurements, Recurring | Level 2 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	4,648	4,934
Corporate | Fair Value, Measurements, Recurring | Level 3 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	8,222	10,140
Asset-backed securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale		10,140
Asset-backed securities | Fair Value, Measurements, Recurring | Level 1 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Asset-backed securities | Fair Value, Measurements, Recurring | Level 2 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	8,222	10,140
Asset-backed securities | Fair Value, Measurements, Recurring | Level 3 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	33,723	27,906
Mortgage-backed securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale		27,906
Mortgage-backed securities | Fair Value, Measurements, Recurring | Level 1 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Mortgage-backed securities | Fair Value, Measurements, Recurring | Level 2 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	33,723	27,906
Mortgage-backed securities | Fair Value, Measurements, Recurring | Level 3 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	$ 0	$ 0

Fair Value - Loans Held For Sal

Fair Value - Loans Held For Sale (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale	$ 6,875	$ 15,989
Aggregate fair value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale	6,875	15,989
Contractual principal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale	6,237	14,504
Difference
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale	$ 638	$ 1,485

Fair Value - Impaired Loans and

Fair Value - Impaired Loans and Foreclosed Real Estate (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Recorded Investment	$ 8,420	$ 11,339
Impaired loans, valuation allowance	159	218
Impaired loans	8,420	11,339
Foreclosed real estate	$ 0	86
Minimum | Level 3 Inputs | Measurement Input, Cost to Sell | Valuation Technique, Discounted Cash Flow
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discounts to appraisals or cash flows for estimated holding and/or selling costs (percent)	11%
Minimum | Level 3 Inputs | Measurement Input, Cost to Sell | Valuation Technique, Consensus Pricing Model
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discounts to appraisals for estimated holding and/or selling costs (percent)	11%
Maximum | Level 3 Inputs | Measurement Input, Cost to Sell | Valuation Technique, Discounted Cash Flow
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discounts to appraisals or cash flows for estimated holding and/or selling costs (percent)	25%
Maximum | Level 3 Inputs | Measurement Input, Cost to Sell | Valuation Technique, Consensus Pricing Model
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discounts to appraisals for estimated holding and/or selling costs (percent)	25%
Fair Value, Measurements, Nonrecurring | Level 3 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Recorded Investment	$ 8,261	11,121
Impaired loans	8,261	11,121
Foreclosed real estate	$ 0	$ 86

Fair Value - Financial Instru_2

Fair Value - Financial Instruments Carrying Amount, FV and Placement (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financial assets
Cash and due from banks	$ 14,774	$ 42,914
Interest bearing deposits at other financial institutions	20,867	136,824
Federal funds sold	1,421	3,657
Carrying Amount | Level 1 Inputs
Financial assets
Cash and due from banks	14,774	42,914
Interest bearing deposits at other financial institutions	20,867	136,824
Marketable equity securities	232	245
Federal funds sold	1,421	3,657
Financial liabilities
Noninterest bearing deposits	806,033	787,650
Carrying Amount | Level 3 Inputs
Financial assets
Loans receivable, net	1,624,572	1,607,086
Restricted investments	3,627	3,498
Financial liabilities
Interest bearing deposits	931,558	1,009,487
FHLB advances and other borrowed funds	34,062	34,062
Fair Value | Level 1 Inputs
Financial assets
Cash and due from banks	14,774	42,914
Interest bearing deposits at other financial institutions	20,867	136,824
Marketable equity securities	232	245
Federal funds sold	1,421	3,657
Financial liabilities
Noninterest bearing deposits	806,033	787,650
Fair Value | Level 3 Inputs
Financial assets
Loans receivable, net	1,572,842	1,598,228
Restricted investments	3,627	3,498
Financial liabilities
Interest bearing deposits	931,882	1,011,121
FHLB advances and other borrowed funds	$ 31,116	$ 34,263

Segments (Details)

Segments (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) segment	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment			4
Interest income	$ 38,340	$ 33,528	$ 109,298	$ 89,455
Interest expense	1,663	1,469	3,890	5,433
Net interest income	36,677	32,059	105,408	84,022
Provision (release of provision) for loan losses	1,260	975	4,247	2,259
Net interest income after provision for loan losses	35,417	31,084	101,161	81,763
Noninterest income	7,108	12,597	23,811	39,992
Noninterest expense	28,094	28,627	82,379	81,572
Income before income taxes	14,431	15,054	42,593	40,183
Total assets	2,009,358	2,169,556	2,009,358	2,169,556	$ 2,055,300
Open Sky
Segment Reporting Information [Line Items]
Noninterest expense	6,600	9,400	20,900	27,300
Operating Segments | Commercial Bank
Segment Reporting Information [Line Items]
Interest income	20,382	17,109	57,794	51,969
Interest expense	1,449	1,160	3,255	4,285
Net interest income	18,933	15,949	54,539	47,684
Provision (release of provision) for loan losses	(980)	0	(980)	433
Net interest income after provision for loan losses	19,913	15,949	55,519	47,251
Noninterest income	468	559	1,571	1,212
Noninterest expense	13,798	12,073	38,741	31,962
Income before income taxes	6,583	4,435	18,349	16,501
Total assets	1,823,049	1,956,340	1,823,049	1,956,340
Operating Segments | CBHL
Segment Reporting Information [Line Items]
Interest income	102	248	347	1,037
Interest expense	40	177	185	745
Net interest income	62	71	162	292
Provision (release of provision) for loan losses	0	0	0	0
Net interest income after provision for loan losses	62	71	162	292
Noninterest income	1,115	4,484	4,580	17,529
Noninterest expense	2,017	2,775	6,364	9,941
Income before income taxes	(840)	1,780	(1,622)	7,880
Total assets	7,664	36,791	7,664	36,791
Operating Segments | Open Sky
Segment Reporting Information [Line Items]
Interest income	17,103	15,635	48,823	34,944
Interest expense	0	0	0	0
Net interest income	17,103	15,635	48,823	34,944
Provision (release of provision) for loan losses	2,240	975	5,227	1,756
Net interest income after provision for loan losses	14,863	14,660	43,596	33,188
Noninterest income	5,524	7,553	17,658	21,208
Noninterest expense	12,101	13,677	36,923	39,379
Income before income taxes	8,286	8,536	24,331	15,017
Total assets	128,842	135,612	128,842	135,612
Corporate
Segment Reporting Information [Line Items]
Interest income	812	574	2,457	1,604
Interest expense	233	170	573	502
Net interest income	579	404	1,884	1,102
Provision (release of provision) for loan losses	0	0	0	70
Net interest income after provision for loan losses	579	404	1,884	1,032
Noninterest income	1	1	2	43
Noninterest expense	178	102	351	290
Income before income taxes	402	303	1,535	785
Total assets	234,731	209,070	234,731	209,070
Eliminations
Segment Reporting Information [Line Items]
Interest income	(59)	(38)	(123)	(99)
Interest expense	(59)	(38)	(123)	(99)
Net interest income	0	0	0	0
Provision (release of provision) for loan losses	0	0	0	0
Net interest income after provision for loan losses	0	0	0	0
Noninterest income	0	0	0	0
Noninterest expense	0	0	0	0
Income before income taxes	0	0	0	0
Total assets	$ (184,928)	$ (168,257)	$ (184,928)	$ (168,257)